Pepsi Co.

SUMMER TRAINING REPORT
ON
COMPARATIVE ANALYSIS OF MARKETING EQUIPMENTS

& MARKET SHARES OF PEPSI AND COCA-COLA FOR THE
YEAR 2009-10
Submitted in Partial Fulfillment of the requirement

Of
MASTER OF BUSINESS ADMINISTRATION (2009-2011)
Submitted to: Submitted by:
Vikas Tandon Amit Kant Ojha

Manager MBA (2009-11)
PepsiCo UIM
1|Page UIM-MBA (2009-11)

ACKNOWLEDGEMENT
I am fortunate enough to have a summer training from a world’s Largest soft drink
manufacturer, and I am very thankful to Mr.Vikas Tandon ( Manager , PepsiCo India Pvt.
Ltd.) and Mr.Abhishek Aggarwal(Assistant Manager,PepsiCo India Pvt. Ltd.) who were
being my Project Guide was very kind to me always helped me whenever, I needed. I also
express my heartiest gratitude to Mrs.Bhavna Panghal (Coordinator MBA), who helped me in
preparing the questionnaire and I am thankful for his valuable suggestion in preparing the
project report.
At last, I am thankful to all those persons who helped me in filling the questionnaire, and
I am really thankful to all above persons because without their help it was not possible to
prepare the project report.
Amit Kant Ojha
Roll no
UIM MBA (2009-11)

PREFACE
Today is the era of competition. In this competitive market one has to present his or her
product in such a way so that it leaves the impression in the mind of others. Advertisement is
the way of doing so. An effective advertisement helps in increasing the scale of the product.
Advertisement conveys the features of the product to the end users. By the means of
advertisement one can know, what the new products available in the market are. One can also
say advertisement is the way of communication by which a company advertise about its
products, so that general public can know about the product and how to use the product and how
to use the product in his life and the sale of the product get increased. It makes the general
public know about the product, its features and its wideness in range. So that they could get
attracted to generate sales and increase sales volume and from customers perspective it provides
them to choose better quality products at minimal cost which ultimately creates value to
company. Also it is the mean through which a company could distinguish itself from its
competitors in consumers’ mind.
So one can say that effective advertisement helps in communicating about the product
and increase the volume of the sale.

TABLE OF CONTENTS
1. INTRODUCTION 7
OVERVIEW: SOFT DRINK INDUSTRY 8
COMPANY PROFILE: PEPSICO 11
 HISTORY 14
 GLOBAL MARKETING NETWORK 17
 PEPSICO IN INDIA 18
COMPETITOR PROFILE: COCA-COLA 21
 COCA-COLA IN INDIA 23
MICHAEL PORTER MODEL FOR PEPSI 24
STRATEGIES OF PEPSI AND COKE 27
PRODUCT 29
BRANDS 31
DISTRIBUTION NETWORK 32
DISTRIBUTION CHANNELS 34
MARKET PLANNING AND RESEARCH 35
PRICING 36
MERCHANDISING 38

MARKETING MIX 40
BRANDING 43
2. RESEARCH METHODOLOGY 45
3. ANALYSIS AND INTERPRETATION 47
SWOT ANALYSIS 47
 STRENGTH 47
 WEAKNESS 47
 OPPORTUNITY 48
 THREAT 49
SURVEY FORM ANALYSIS 50
4. PROBLEMS 64
5. CONCLUSION 66
6. SUGGESTIONS AND RECOMMENDATIONS 67
7. LIMITATIONS 69
8. BIBLIOGRAPHY 70
9. APPENDIX 71
 QUESTIONAIRE 71

TABLE OF FIGURES
1. MARKET SHARES OF BOTH SOFT DRINK COMPANIES 52

2. MARKET SHARE OF BRAND : PEPSI AND COKE 53
3. SHARES OF PEPSI AND COKE IN LUCKNOW CITY 54
4. CHANNELS OF SALE 55
5. BRANDS COVERED BY DIFFERENT OUTLETS 56
6. DAILY SALE OF RETAILERS 57
7. COOLING EQUIPMENTS OF BOTH COMPANIES 58
8. BOTTLE OF BOTH COMPANINES IN FRIDGES 59
9. GLOW SIGN OF PEPSI AND COKE 60
10. FLEX BOARD OF PEPSI AND COKE 61
11. PAINTINGS OF PEPSI AND COKE 62
12. ASSETS OF BOTH COMPANIES 63

INTRODUCTION
Today is the era of competition. In this competitive market one has to present his or her
product in such a way so that it leaves the impression in the mind of others. Advertisement is
the way of doing so. An effective advertisement helps in increasing the scale of the product.
Advertisement conveys the features of the product to the end users. By the means of
advertisement one can know, what the new products available in the market are. One can also
say advertisement is the way of communication by which a company advertise about its
products, so that general public can know about the product and how to use the product and
how to use the product in his life and the sale of the product get increased. It makes the
general public know about the product, its features and its wideness in range. So that they
could get attracted to generate sales and increase sales volume and from customers
perspective it provides them to choose better quality products at minimal cost which ultimately
creates value to company. Also it is the mean through which a company could distinguish itself
from its competitors in consumers’ mind.
So one can say that effective advertisement helps in communicating about the product and
increase the volume of the sale.
For the sake of above PepsiCo have always maintained itself in retaining its share in consumers
mind. Through its continuous and effective advertisements PepsiCo have proved its presence all
over the Globe.
PepsiCo India which carryout sales and promotion operations have also done some great job in
Indian Scenario. Although they are not fully but continuously successful in providing value to
consumer.

Need of the Study
The need of study is to know about Market, Retailers and Distributors responses,
competitor’s strategies, product place and also to know about the strength, weakness,
opportunities and threats of PEPSICO INDIA and for the sake of this SWOT analysis is to be
done which provide solution to the various problems and will help to analyze various issues in
soft drink market.
The report provides relevant ideas and information which help company to come out
from various problems.

SOFT DRINK INDUSTRY: AN OVERVIEW
It all began in 1886 when John Syth Pemberton, a pharmacist in Atlanta, Georgia concocted
caramel-colored syrup in a three-legged brass kettle in his backyard. Unaware the pharmacist
has given birth to a caromel colored syrup, which is now the chief ingredient of the world’s
favorite drink. The syrup combined with carbonated the soft drink market. It is estimated that
this drink is served more than one thousand million times in a day.
Equally oblivious to the historic value of his actions was Frank Robinson, his partner and book
keeper. Pemberton & Robinson laid the first foundation of this beverage when an average nine
drinks per day to begin with, upping volumes as sales grew.
In 1894, this beverage got into bottle, courtesy a candy merchant from Mississippi. By the
1950’s Colas were daily consumption items, stored in house hold fridges. Soon were born
other non- cola variants of this product like orange & Lemon.
Now, the soft drink industry has been dominated by three major players –
(1) The New York based Pepsi co. Inc. (2) The Atlanta based Coca Cola co. (3) The united
Kingdom based Cadbury Schweppes.
Throughout the globe these major players have been battling out for a bigger chunk of the
ever-growing cold drink market. Now this battle has begun in India too. India is now the part of
cold drink war. Gone are days of Ramesh Chauhan, India’s one time cola king and his bouts of
pistol shooting. Expect now to hear the boon of cannons when the Coca Cola & Pepsi co.
battles it out for, as the Jordon goes a bigger share of throat. By buying over local competition,
the two American Cola giants have cleared up the arena and are packing all their power behind

building the Indian franchisee of their globe girdling brands. The huge amount invested in
fracture has never been seen before. Both players seen an enormous potential in his country
where swigging a carbonated beverage is still considered a treat, virtually a luxury.
Consequently, by world standards India’s per capita consumption of cold drinks as going by
survey results is rock bottom, less than over Neighbors Pakistan & Bangladesh, where it is four
times as much.
Behind the hype, in an effort invisible to consumer Pepsi pumps in Rs 3000 crores (1994) to
add muscle to its infrastructure in bottling and distribution. This is apart from money that
company’s franchised bottles spend in upgrading their plants all this has contributed to
substantial gains in the market. In colas, Pepsi is already market leader and in certain cities like
Delhi, Pepsi outlets are on one side & all the other colas put together on the other. While coke
executive scruff at Pepsi’s claims as well as targets, industry observers are of the view that
Pepsi has definitely stolen a march over its competitor coke.
Apart from numbers, Pepsi has made qualitative gains. The foremost is its image. This image
turnaround is no small achievements, considering that since it was established in 1989, taking
the hardship route prior to liberalization and weighed down by export commitments.
Now, at present as there are three major players coke, Pepsi and Cadbury and there is stiff
competition between first two, both Pepsi and coke have started, sponsoring local events and
staging frequent consumer promotion campaigns. As the mega event of this century has
started, and the marketers are using this event – world cup football, cricket events and many
more other events.
Like Pepsi, coke is picking up equity in its bottles to guarantee their financial support; one side
coke is trying to increase its popularity through.
Eat Food, enjoy Food. Drink only coca cola. Eat cricket, sleep cricket. Drink only coca cola. Eat
movies, sleep movies. Drink only coca cola.
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On the other side of coin Pepsi has introduced AMITABH BACHHAN for capturing the lemon
market through MIRINDA – Lemon with “zor ka jhatka dhere se lage”.
But no doubt’ that UK based Cadbury is also recognizing its presence. So there is a real crush in
the soft drink market with launch of the carbonated organize drink Crush, few year ago in
Delhi., the first in a series of a launches , Cadbury Schweppes beverage India (CSBI) HAS
PLANNED:- The world third largest soft drink marketers all over the country CSBI who wholly
owned subsidiary of the London based $ 6.52billion. Cadbury Schweppes is hoping that crush
is going well and well not suffer the same fate as the Rs. 175 crore Cadbury India’s apple drink
Apella. CSBI is now with orange (crush), and Schweppes soda in the market.
As orange drinks are the smallest of non-cola categories that is Rs. 1100 crores markets with
10% market share and cola heaving 50% is followed by Lemon segment with 25%.
The success of soft drink industry depends upon 4 major factors viz.
 Availability
 Visibility
 Cooling
 Range
AVAILABILITY
Availability means the presence of a particular brand at any outlet. If a product is not
available at any outlet and the competitor brand is available, the consumer will go for that
because generally the consumption of any soft drink is an impulse decision and not
predetermined one.
VISIBILITY
Visibility is the presence felt, if any outlet has a particular brand of soft drink say- Pepsi cola
and this brand is not displayed in the outlet, then its availability is of no use. The soft drink
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must be shown off properly and attractively so as to catch the attention of the consumer
immediately Pepsi achieves visibility by providing glow signboards, hoarding, calendars etc.
to the outlets. It also includes various stands to display Pepsi and other flavors of the
company.
COOLING
As the soft drinks are consumed chilled so cooling them plays a vital role in boosting up the
sales. The brand, which is available chilled, gets more sales than the one which is not, even if
it is more preferred one.
RANGE
This is the last but not the least factor, which affects the sale of the products of a particular
company.
Range availability means the availability of all flavors in all size
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COMPANY PROFILE: PEPSICO
PepsiCo is the 18th largest American Company with its worldwide operations in 190 countries.
The company employees over half a million persons and is possibly the largest employer.
PepsiCo has set up a fully integrated operation in India- manufacturing, research and
development, marketing, distribution, covering fruit/vegetable processing, exports, snack
foods, beverages and restaurants, including franchising of beverage territories for beverage
business and restaurants it has set up a holding company to further accelerate growth in the
future through new initiatives and joint ventures. PepsiCo started its operations in India in
1989 with the formation of Pepsi Foods Limited.
All of Pepsi’s businesses are employment intensive. PepsiCo employs over 35000 persons
directly and indirectly in its beverage business and other operations. 28 bottling plants and
new projects are combing up in West Bengal, Karnataka, Rajasthan, Gujarat and Maharashtra.
In May 1990, Pepsi was launched in Jaipur. Pepsi broke its advertising campaign “Are you
ready for the magic” featuring Remo Fernandez and Juhi Chawla on 15 th August 1990. Since
then this magic has won millions of Indian hearts. Starting from a Zero base, Pepsi, today,
enjoys a leadership in Cola category. The company’s beverage brands are Pepsi, Seven Up ,
Miranda Lemon, Miranda Orange and Slice. It also has Dukes, lemonade, and Dukes Soda. The
snack foods are Ruffles, Cheetos and Lehar Namkeen. Pepsi services all retailers at least thrice
a week and in summer, very often, twice a day. The company along with the franchisees has 25
bottling plants spread all over India, of which 12 plants are owned by PepsiCo.
PepsiCo is planning to invest another Rs. 500 crore in its Indian operation in the next two
years. Each year, Pepsi is likely to generate an additional employment of 5,000 persons in its
business alone.
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PepsiCo is one the largest companies in the U.S. It figures amongst the largest 15 companies
worldwide according to the number of employees hired. It has a U.S. Fortune rank of 50.The
company profits for 1997 were $2.14 billion on revenues of $20.92 billion and Pepsi is bottled
in nearly 190 countries.
PepsiCo is a world leader in the food chain business. It consists of many companies amongst
which the prominent once are Pepsi-Cola, Frito-Lay and Pepsi Food International. The group is
presently into two of the most profitable and growing industries namely, beverages and snack
foods. It has scores of big brands available in nearly 150 countries across the globe. The group
has established for itself once of the strongest brands in various segments of its operations.
The beverages segment primarily markets its Pepsi, Diet Pepsi, Mountain Dew and other
brands worldwide and 7-UP outside the U.S. markets. These are positioned in close
competition with Coca-Cola Inc. of USA. A point which is worth a mention is that Coca-Cola
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gets 80% of its profits for International operations while the same figure for PepsiCo stands at
6%. The segment is also in the bottling plants and distribution facilities and also distributes the
ready to drink tea products of Lipton in North America. In a joint venture with orient spray
juice products PepsiCo also manufactures and distributes fruit juices.
The snack food division manufactures and distributes and markets chips and other snacks
worldwide. The international operations of this segment extend to the markets of Mexico, the
UK and Canada. Frito-Lay represents this segment of PepsiCo.
The restaurant segment earlier primarily consists of the operations of the worldwide Pizza Hut,
Taco Bell and KFC chains, PFS. Pepsi Co’s restaurant distribution operation, supplies company
owned and franchise restaurants in the U.S. The company ventured into restaurant business
with Taco Bell, KFC, Pizza Hut ended last year when they were spinned off from the company.
A packaged goods company comprised of Pepsi-Cola Company and Frito-Lay will continue to
bear the PepsiCo name. The move should enhance both corporations ability to prosper with
their own fully dedicated structure and management team.
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HISTORY
AS USUAL, WAS HOT AND HUMID IN NEW BERN, NORTH CAROLINA. SO A YOUNG
PHARMACIST NAMED CALEB BRADHAM BEGAN EXPERIMENTING WITH COMBINATIONS OF
SPICES, JUICES AND SYRUPS, TRYING TO CREATE A REFRESHING NEW DRINK TO SERVE TO HIS
CUSTOMERS. HE SUCCEEDED BEYOND ALL EXPECTATIONS, INVENTING THE BEVERAGE NOW
KNOWN AROUND THE WORLD AS ... PEPSI.
Caleb Bradham, a Pharmacist had a soda fountain in his drugstore, where he served his
customers refreshing drinks that he created himself. His most popular creation was a unique
mixture of carbonated water, kola nuts, vanilla and rare oils, named “Brad’s Drink” by his
customers. Caleb decided to rename it “Pepsi-Cola,” and advertised his new soft drink to
enthusiastic customers. Sales of Pepsi-Cola started to grow, convincing him to form a company
and market the new beverage.
In 1902, he launched the Pepsi-Cola Company in the back room of his pharmacy, and applied
to the U.S. Patent Office for a trademark. An official patent was awarded on June 16, 1903. At
first, he mixed the syrup himself and sold it exclusively through soda fountains. But soon Caleb
recognized that a greater opportunity existed—to bottle Pepsi-Cola so that people everywhere
could enjoy it.
Caleb sold 7,968 gallons of syrup in 1903. Two years later, he awarded two franchises to bottle
Pepsi-Cola to independent investors in Charlotte and Durham, North Carolina. In 1906, the
number of franchises grew to 15, and leapt to 40 by 1907. By the end of 1910, there were
Pepsi-Cola franchises in 24 states, and the company was selling more than 100,000 gallons of
syrup per year. Building a strong franchise system was one of Caleb’s greatest achievements.
Local Pepsi-Cola bottlers, entrepreneurial in spirit and dedicated to the product’s success,
provided a sturdy foundation for a growing company. They were then, and continue to be
today, the cornerstone of the Pepsi-Cola enterprise.
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Caleb erected a Pepsi-Cola headquarters so spectacular that the town of New Bern featured it
on a postcard. The company was one of the first in the United States to switch from horse-
drawn transport to motor vehicles.
Pepsi-Cola’s advertisements changed, too. Famous racing car driver Barney Oldfield
endorsed Pepsi in newspaper ads as “a bully drink ... refreshing, invigorating, a fine bracer
before a race.” Caleb promoted Pepsi sales with the slogan, “Drink Pepsi- Cola. It Will Satisfy
You.”
The outbreak of World War I changed the U.S. financial landscape, and the cost of
doing business increased drastically. Sugar prices fluctuated wildly between record highs and
disastrous lows, and so did the cost of producing Pepsi-Cola. In 1923, Pepsi-Cola was bankrupt.
Caleb returned to his pharmacy and sold the valuable Pepsi-Cola trademark to Craven Holdings
Corporation, the first of what would be several owners.
Soon, New York stockbroker Roy C. Megargel bought the Pepsi-Cola trademark and
struggled to save the business. He moved the company’s operations from New Bern, North
Carolina, to Richmond, Virginia, in 1923, and with his own funds made up the deficits the
company incurred annually. In 1931, despite his best efforts, the restructured National Pepsi-
Cola Company was declared bankrupt for the second time. It wasn’t until a successful candy
manufacturer, Charles G. Guth, appeared on the scene that the future of Pepsi-Cola was
assured. Guth was president of Loft Incorporated, a large chain of candy stores and soda
fountains along the Eastern Seaboard. He saw Pepsi-Cola as an opportunity to discontinue an
unsatisfactory business relationship with the Coca-Cola Company, and at the same time to add
an attractive drawing card to Loft’s soda fountains. Under Guth’s leadership, Pepsi-Cola
became a thriving national brand once again. Within two years after its sale, Pepsi would earn
$1 million for its new owner. With the resurgence came new confidence, a rarity in those days
because the nation was in the early stages of a severe economic decline that came to be
known as the Great Depression.
PepsiCo got its start in 1965, when Pepsi-Cola and Frito-Lay merged to create a new
company. Since then, PepsiCo, Inc. has continued to grow, adding new brands and product
lines. Tropicana Products, Inc. joined the PepsiCo portfolio in 1998 and gives PepsiCo the
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strongest brand name in juice. The company hit a grand slam with its merger with The Quaker
Oats Company in 2001, bringing together two incredibly strong and successful food and
beverage companies. The PepsiCo-Quaker union added the powerful Gatorade thirst quencher
and its Quaker brand, a symbol of healthy eating that extends PepsiCo’s reach into breakfast,
on-the-go foods, and snacks for kids. Today, PepsiCo is a $29 billion company, employing more
than 150,000 people speaking more than 40 languages around the globe. The company is
consistently recognized for its corporate citizenship, philanthropic efforts and diversity
programs It is the world’s fourth-largest food and beverage company— and is staking its
claim as the global
leader in
convenience foods and

beverages. PepsiCo has a strong plan
to
continue
to expand with an enormous lineup of
convenience foods and drinks
that provide great taste,
nutrition and fun around
the clock.
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PEPSI IN CHANGING DYNAMICS
GLOBAL MARKETING NETWORK
With around 450 depots, 8000 distributors and 10, 00,000 retailers dotting the country, the
company has one of the best and strong distribution networks in the nation.
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PEPSI IN INDIA
India’s most critical challenge is to reduce unemployment in the first instance, before a leap of
new employment.
According to the famous economist Lord J. M. Keynes-every investment creates employment.

The answer to India’s problems of unemployment is investment.
Only new investment generates employment, low investment can only result in low
employment.
After the liberalization of Indian economy in 1991, the substantial foreign fund inflow,
primarily in the consumer sector has already taken place. This has generated tremendous
economic activity resulting in major employment growth, in this sector. One good example of
foreign investment can be PepsiCo, which began to invest in India in 1989, and in 1994-95
itself, has invested over Rs. 300 crores. Most of Pepsi’s business has a heavy focus on service
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to the consumers and retailers, both in domestic and international markets. The company
claims to have generated, directly and indirectly over 35,000 jobs.
Since its entry, Pepsi has not only brought in substantial foreign investment, but also
technology and know-how, which have been used is local and export businesses. The
international focus of its export business is also very employment friendly.
The largest employment is in the beverage industry. The cycle begins with a concentrate
manufacturing unit which is supplied to bottling units where empty glass bottles are cleaned
and filled and sent to the warehouse, and then to the distributor and finally to the retailer,
who chills the soft drinks and dispenses to consumer. A reverse cycle takes place for the empty
bottles.
Pepsi’s modern concentrate plant, set up with an investment of Rs. 12 crore, at Channo in
Punjab, supplies concentrate to 25 beverage manufacturing units spread over the country in
addition, it generated substantial employment in units supplying raw materials, distribution
vehicles, glass bottles, plastic crates and to small artisans, painters and small traders engaged
in a number of marketing activities.
As most of the ‘ready –to-serve’ aerated soft drinks in this country are solving returnable glass
bottles, a huge distribute on force is required to sell products and pick up empties. In 1997,
Pepsi expects to touch sales involve of about 2,500 million bottles. Pepsi services all retailers at
least thrice a week and in summer, very often, twice a day.
The company along with the franchisees has 25 bottling plants spread all over India, of which
12 plants are owned by PepsiCo.
Over 10,000 persons are engaged in the soft drink manufacturing units.
After the bottles are filled in the units, a primary movement takes place from the factory of the
warehouses and a secondary movement from the warehouse to the retailers. Primary
movement from factory to warehouse requires, 1,20,000 trucks per annum, covering distances
to 30 miles to 600 miles per day, depending on warehouse distance from the factory. For
secondary distribution, over 1,800 trucks, 3,000 three wheelers, and over 500 hand carts and
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push carts are employed by the Pepsi system. Each truck is manned by three persons- a driver-
cum salesman and two loaders. Pepsi also has over 1,500 carrying and forward agencies (C &
Fas) and distributors. Employment at distributors average 10 persons. This works out to an
employment of over 15,000 persons.
Another feature of Pepsi system is installation of 4,000 vending machines for dispensing chilled
Pepsi soft drinks in various outlets such as railway stations, airports, recreation spots,
restaurants, department stores, cinema houses, etc. Each of these vending machines is
managed by one person resulting in employment of 4,000 persons.
A large number of technicians are also engaged in the maintenance of these expensive
machines, which were assembled in India. Pepsi has four vendors to manufacture the 150
million disposable cups which are given free along with chilled Pepsi to the consumers from
the fountain Pepsi operation.
In the last 18 months, PepsiCo has acquired a fleet of 500 trucks which are used for
distribution of soft-drinks to the retailers and proposes to add directly, another 150 trucks in
the next six months.
Pepsi bottlers will be adding 500 trucks and three wheelers, to intensify their distribution. This
really proves that single economic activity like beverages has resulted in major benefits to a
number to a number of industries.
The system generates substantial employment in marketplace activities such as signages,

hoardings, bill boards and other advertisements, where a large number of painters and other
craftsmen are engaged. For example, the number of persons engaged in installation of
signage’s, sign boards, glow signs, and their fabrication would be of the order of 120 persons in
Delhi alone, dedicated to Pepsi alone. Similarly going by these numbers, the national
employment figure for dedicated painters and neon-sign fabricators could be over 1,500
persons. The company recognizes India’s potential of skilled manpower which is available in
abundance. PepsiCo is planning to invest another Rs. 500 crore in its Indian operation in the
next two years. Each year, Pepsi is likely to generate an additional employment of 5,000
persons in its business alone.
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What striking about Pepsi’s Indian operations is, that the operation has nothing foreign about
it, except the Rs. 500 crore in foreign exchange, technology and expertise it has brought from
its parent company.
The concentrate, returnable glass bottles, crates, trucks are all “Made in India” giving
employment opportunities to thousands of people. The entire staffs of Pepsi in India-right
from the workers to supervisory staff, including the Chairman of the company in India, are all
Indians. In fact, PepsiCo. The parent Company, has posted many Indian Managers in important
assignments outside India-a true recognition of Indian managerial the technical talent.
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COCA COLA PROFILE
The Coca-Cola Company is the world's leading manufacturer, marketer and distributor
of non-alcoholic beverage concentrated syrups, with world head quarters at Atlanta, Georgia.
The Company and its subsidiaries employ nearly 29,000 people around the world. Syrups,
concentrates and beverages bases for Coca-Cola, the Company's flagship brand, and over 230
other company's soft drinks brands are manufactured and sold by The Coca-Cola Company and
its subsidiaries in nearly 200 countries around the world.
By contract with the Coca-Cola Company or its local subsidiaries, local business are
authorized to bottle and sell the company soft drinks within a certain territorial boundaries
and under that ensure the highest standards of quality and uniformity.
The Coca-Cola Company stock, with ticker symbol KO, is listed and traded in the United
States on the New York stock exchange. Common stock is also traded on the Boston,
Cincinnati, Chicago, Pacific and Philadelphia exchanges. Outside the United States, company’s
common stock is listed and traded on German and Swiss exchanges.
The Company's operating, management structure consists if five geographic group plus
The Minute Maid Company. The North America Group of comprises the Unites States and
Canada. The Latin America group includes company's operations across Central and South
America, from Mexico to the tip of Argentina. The Greater European markets in Western
Europe and the rapidly growing nations of Eastern and Central Europe. The Africa and the
Middle East Group encompasses the Middle East and the entire continent of Africa. The Asia
Pacific Group has operations from India through the Pacific region including China, Japan and
Australia.
The Minute Maid Company, the company's juice business in Houston, Texas, is the
world’s leading marketer of juices and juice drinks. The Minute Maid Company's product
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includes Minute Maid Premium Lemonade Iced Tea, Minute Maid Coolers, Hi-c Blaster and
Five Alive.
The Coca-Cola Company has a commitment, more than a century old, to social
responsibility through philanthropy and good citizenship. The company's reputation for a
good corporate citizenship results from charitable donations, employee volunteerism,
technical assistance and other demonstrations of support in thousands of communities
worldwide.
The Coca-Cola company continues to sponsor the world's most exciting sport events
including World Soccer, the National Football League, National Basketball Association,
NASCAR, the Tour de France, the Rugby World Cup, COPA America and numerous local sports
events. The Coca-Cola Company has sponsored the Olympics games since 1928.
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COCA COLA INDIA
After a 16-years absence, Coca-Cola returned to India in 1993. The Company's presence in
India was cemented in November that year in a deal that gave Coca-Cola ownership of the
nation's top soft-drink brands and bottling network.
Coca-Cola India has made significant investments to build and continually improve its business
in India, including new production facilities, wastewater treatment plants, and distribution
systems and marketing equipment.
  During the past decade, the Coca-Cola system has invested more than US$ 1 billion
in India

Coca-Cola is one of the country's top international investors

 In 2003, Coca-Cola India pledged to invest a further US$100 million in its operations
  Coca-Cola business system directly employs approximately 6,000 local people in

India
  In India, we indirectly create employment for more than 125,000 people in related
industries through our vast procurement, supply and distribution system
  Virtually all the goods and services required to produce and market Coca-Cola
locally are made in India.
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 The Coca cola system in India comprises of 27 wholly company owned bottling
operations and another 17 franchisee owned bottling operations.
 Coca cola India has 2 subsidiaries:
 Hindustan coca cola beverages private limited
 Hindustan coca cola marketing private limited
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MICHAEL PORTER MODEL FOR PEPSI
POTENTIAL ENTRANTS
BUYERS
INDUSTRY COMPETITORS
SUPPLIERS SUSTITUTES
All the three soft drink giants i.e. Pepsi, Coke, Cadbury Schweppes are already here. No other
company plans to enter this capital-intensive industry at the moment. The investment in this
industry is more than Rs.100 per crate. This leaves no scope for small players who cannot
match the might of these three multinational giants. Thus at the moment there are no
potential entrants.
All the three soft drink giants i.e. Pepsi, Coke, Cadbury Schweppes are already here. No other
company plans to enter this capital-intensive industry at the moment. The investment in this
28 | P a g e UIM-MBA (2009-11)
industry is more than Rs.100 per crate. This leaves no scope for small players who cannot
match the might of these three multinational giants. Thus at the moment there are no
potential entrants.
SUPPLIERS:
The bottling is done either by franchises or by company owned bottling plants. There are 18
franchisee and 13 companies owned bottling plants. The empty glass bottles and shells are
sourced from local manufacturers. The ingredients for the concentrate are sourced and
manufactured locally. There is abundant supply of water and sugar. Thus on the suppliers side
Pepsi does not have a problem. Presently the cans are imported and filled locally near Pune in
Maharashtra. Seeing the potential, various local manufacturers are setting up plants for
manufacturing cans in India. Soon this problem will also be resolved.
BUYERS:
The following are the various market segments
 On Premise Market
 Home Market
 At Work Market
 Youth Market
 Special Event Market
 High Visibility Market
Characteristics of the market segment: -
1. On - premise market:
This is otherwise called the “Route market”. This market caters to the people who are on the
move - people shopping, eating out, and going to and from work, etc. Because of this product
display and advertising signs - prominence become more important to cash in on the impulse
nature of the product.
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2. Home Market:
This market consists of people who buy essentially for consumption at home. By and large, the
housewife is the decision maker. The no. of zero-case calls is higher here than in route
segment. Time spent per case is also high. Cash collection also poses problems.
3. At work-market:
This market comprises of consumers working in office factories and Industrial establishment
etc. The sales can be had either through canteens or activating nearby outlets and developing
it properly. Generally, in this market, the time spent per outlet is quite high because of
formalities involved.
4. Youth Market:
This market is conceived as one of schools, colleges, and youth clubs. This is an important
segment in terms of its long life and amenability effective advertising. Association of our
product with a youth activity with good merchandising support will help develop the market
well.
5. Special Events Market:
This market comprises of people at picnics, parties social events, conferences etc. These are
generally bulk order markets and a good relation between salesmen and consumers at large,
becomes important. It is necessary to maintain a good information system to get timely
information about this demand.
6. High Visibility Market:
This segment is not a very distinct market as such. This comprises of places where there is a
high visibility to the product displayed. This is especially true of places where lot of people
passes through such as Airports and Railway stations. These are the places, which can give
impression to the people as to who is the market leader. Strengthening this market will be a
re-enforcing factor for over-all product image in the market.
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People constantly move from one segment of our market to another during a day a consumer
is a part of several market-segment, perhaps even all the segments.
SUBSTITUTES:
Any drink, which quenches thirst, is a substitute. Thus this industry is highly competitive as
even water is substitute and almost a dozen products are launched every year. Recently Dabar
India Ltd. has launched “Real” - fruit juices priced at Rs.30 for a 500-ml.-tetra pack and the
makers of “Frooti” (PARLE-G) have launched “Jolly Jelly”. But nowadays, people prefer
carbonated drinks because of the taste, fizz and the fun element attached with it.
COMPETITION:
The other two major players in this industry are Coca Cola and Cadbury Schweppes. The real
competition is between Pepsi and Coke. Presence of competition will ensure expansion of the
market by collective efforts, which is growing at a rate of 25% annually. There is tremendous
potential considering the per capita consumption of India, which is a measly 0.6 liters as
compared to US where it is 83.5 liters. Presently Pepsi has stolen a march over its rival because
of its marketing efforts.
STRATEGIES OF PEPSI AND COKE
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The Pepsi Process: Despite being a global brand, Pepsi has built its success on meeting the
Indian consumer’s needs, particularly in terms of making the brand synchronize with localized
events and traditions. Instead of harping on its global lineage, ergo, it tries to plug into ethnic
festivals, use the vernacular indifferent part of the country, and blend into the local fabric.
Pepsi is using both national campaigns-such as the Drink Pepsi, Get Stuff scheme, which offers
large discounts on other products to Pepsi-buyers as well as local.
The Coke Copy: Instead of creating a bond with the customers through small but high-impact
events, Coca-Cola chose to associate itself with national and international mega events like the
World Cup Cricket, 1996, and world cup football 1998. But now coke is also entering into local
actions. Coke is also trying to make their brand synchronize with localized events traditions
and festivals. Coca-Cola new tag line in this advertisement is “Real shopping, real refresher”. In
this way Coke is copying Pepsi.
EMPOWERMENT
The Pepsi Process: Once of the strongest weapons in Pepsi’s armory is the flexibility it has
empowered its people with. Every manager and salesperson has the authority to take
whatever steps he, or she, feels will make consumers aware of the brand and increase its
consumption.
The Coke Copy: Flexibility is the weapon that Coca-Cola, fettered as it is by the need for
approvals from Atlanta for almost everything. In the past, this has shown up in its stubborn
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insistence on junking the franchisee network it had acquired from Parle; in its dependence on
its own feedback mechanism over that of its bottlers;’ and on its headquarters-led approach.
PRICE
The Pepsi process: Pepsi has consistently wielded its pricing strategy as in invitation to
sample, aiming to turn trial into addiction.
It launched the 500 ml bottle in 1994 at Rs. 8 versus Thumps Up’s Rs. 9, in April, 1996, its 1.5
liter bottle followed Coke into the marketplace at Rs. 30 – Rs 5 less than Coke’s .But it couldn’t
continue the lower price positioning for long.
The Coke Copy: Initially, coke carbon-copied the strategy by introducing its 330ml cans in
January 1996, at an invitation price of Rs. 15 before raising it to Rs.18. By this time, it had
realized that the Coca-Cola brand did not hold enough attraction for customers to fork out a
premium.
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PRODUCT
The term SOFT DRINK was originated to distinguish the flavored refreshment from hard liquor.
Soft drink was flavored to change the habits of earlier Americans who used to have hard
liquor. The fruits and vegetable juices are not considered soft drinks. Pepsi is a pure soft drink,
which is enjoyed in our 195 countries. It is made of artificial flavors and contains no fruit juice
or fruit pulp.
How soft drinks are made:
Soft drink consists of carbonated water and syrup. Adding carbonated gas to water under
pressure produces carbonated water. The gas makes the water bubble and fizz in most cases.
Syrup is made of a concentrate and sweetener. A concentrate is a blend of flavor and acid. In
concentrate for most soft drinks also include coloring. The concentrate contains a unique
blend of ingredients, which give Pepsi its distinctive flavor. Syrup can be also being prepared
directly from individual ingredients. Carbon dioxide gas gives beverage its sparkle and tangy
taste and prevents spoilage. While it has not been conclusively proved that carbonation offers
a direct medical benefit, carbonated beverage are also used to alleviate post operative nausea
when no other food can be tolerated. Carbon dioxide is supplied to soft drinks by
manufactures in a liquid form maintained under approximately 1,200 pounds per square inch
pressure in heavy steel containers.
Many of the flavorings found in soft drinks come from natural sources such as fruits juices and
oils obtained from roots, citrus fruit peels, and leaves of various plants. Some flavorings are
artificial, but similar to natural flavoring in taste. Citric acid and phosphoric acid give soft drink
a tart taste. Caramel is usually used as a coloring in cola drinks. The sweeteners may come
from maize, sugar beet or sugarcane. Artificial sweetener, such as saccharine and aspartame is
used in Diet Pepsi and Diet Coke.
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The mixing is carried out under the highest standards of quality control and accordingly to
precise instructions in order to insure that every consumer always receives a product of the
same trusted quality. The bottling of Pepsi in modern plants such as there are in India is carried
out at the rate of 600 bottles a minutes. Pepsi is approved by the National Health Authorities
of every country in which it is sold.
Packaging
Pepsi is supplied in -
 Returnable glass bottles (200 ml, 250 ml, and 300 ml) which are supplied in molded
plastic shells.
 1.5 & 2 litre PET bottles.
 330 ml of cans.
 PMX or dispensing machines (Fountain Pepsi)
There are two methods of vending or dispensing soft drinks:
1. Pre-mix system - In the premix system, the finished beverage is prepared by the soft drink
manufacturers and filled into 5 to 10 gallon stainless steel tanks. The tanks of the beverage are
attached to the vending machine where the beverage is cooled and dispensed.
2. Post-mix system - In post-mix system the vending machine has its own water and carbon
dioxide supply. The water is supplied through Aqua Guard purifier and is carbonated as
required by carbon dioxide cylinder. It is then mixed with concentrate or flavored syrup which
is kept in BIB (Bag in Box) as it is dispensed into the cup. Pepsi has post mix vending machines
and coke has pre mix vending machines.
Cans & Bottles - Among the different packages in the market in the next couple of years could
be cans and pet bottles - apart from the standard glass bottles. One of the standard packages
that one is likely to see in the coming years is buying more at lower price. Pepsi introduced 200
ml bottles of Pepsi at the price of Rs.6. It was an instant hit while packages of those kinds are
also being worked out keeping in view of the rural market. But it could also lead to the killing
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of the standard 300 ml size bottles that is in vogue now. The consumer would get a choice of
soft drink at a cheaper and an affordable price - even if it means breaking of certain standards
shapes and sizes of the packages. The broad strategies of both penetrating the market are still
being made. And the amount of thought that is going into it can be made out from the very
fact that the manufacturers are thinking of such innovations as the “picnic packages” of the
brand for those on holiday trip. The battle will be engrossing as packages will be brought to the
market and be pulled by the competing rivals. There would be price wars and competitions on
qualities.
In the US, 55% of the carbonated soft drink (CSD) is sold today in returnable bottles, 30% on
one-trip containers and 15% through vending machines and fountain. In other parts of the
world, Pepsi are sold mainly in returnable bottles. Pepsi in cans are more popular in countries
such as US, Canada, Australia, Philippines and England. Canned Pepsi is also sold in India.
BRANDS
The current Indian market consists of seven-flavor segment. Cola segment is by far the most
widely consumed soft drinks.
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SEGMENT BRAND
COLA PEPSI
ORANGE MIRINDA
CLOUDY LIME MIRINDA LEMON
CLEAR LIME 7-UP
GREEN MOUNTAIN DEW
SODA EVERESS
MANGO SLICE
In addition to these segments, Pepsi has developed wide range of soft drinks such as Diet
Pepsi, Caffeine Free Pepsi and low sodium Pepsi, Sugar Free -Pepsi Max.
DISTRIBUTION NETWORK
Tools of Distribution:
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The distribution network of any organization accounts a lot for its success. It’s Franchise,
Shukla Sales, Saloni agency, Gauri sales and distribution, Pepsi House has maintained an
effective and regular distribution network. The company follows its distribution through:
1. Depot System:
In this, the company dispatches the lot of its product and is stored in a place called the depot.
The staff is then responsible for maintaining the constant regular supply of soft drinks in the
areas falling in its territory. The company has a depot in VIP Road, Bargavan, Khadara,
Madiyavan, Triveni Nagar, is catering all the needs of rural areas and nearby areas of Sitapur
Road.
a) Retail routes: A route covers all the outlets in a specific region or locality salesman along
with two or three helpers with the help of a vehicle distribute the company's product on a
particulars route. The company has about 300-400 retail outlets.
2. Trade Channel:
A category of competing business locations with similar business and product offerings and
methods of selling to consumes engaged in specifically defined activities.
Distribution = Sales + Delivery + Merchandising + Local Account Management
DISTRIBUTION CHANNEL
Produced (Soft drink mix of all type of brands of Pepsi is prepared)
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Bottling Plant (Empty Bottles are filled with the concentrate mix at the plant situated at
Kanpur Dehat)
Product (Different brands of Pepsico like Pepsi, Mirinda, Mountain Dew, 7 UP, Slice etc.
are placed in crates)
Ware Houses (These filled crates come to the warehouse of PepsiCo situated at Lucknow)
Distributor (Now these crates are transferred to various distributors of which one of them is
Saloni Traders, Sitapur Road)
Retailer (Through Distributor, this goes to various retailers like Dubey Traders,Surendra Cool
Corner,Dixit Cool Corner,Aishwarya Milk Bar etc.)
End Consumer (Finally it reaches to end consumers i.e., various peoples of the city who drinks
it according to their taste and preferences)
MARKET PLANNING AND RESEARCH
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Marketing to the Customers
Managing customer relationship starts with trade channel business planning to improve
customer satisfaction.
a) Understanding: Customer is important. This includes gaining a basic understanding of each

trade channel.
b) Flexibility: It is important to grow with the customers, and became more sophisticated
more experts ourselves.
c) Adding Values: Customer must be helped in increasing their sales and profits the way
should be found out to serve them better.
Planning in Soft Drink Industry:
Planning is bridging the gap between where we are and where we want to be in the future.
The main areas of planning in soft drink industry are:
1. Planning of Target: The target for a New Year is planned with a target of achieving 20%
growth on the previous year's peak season production.
2. Planning of Dealers: Again in increase of 20% on the number of previous year dealers is
done in different regions.
3. Planning of routes and vehicles: A route covers all the outlets in a specific region or
locality. With the increase in number of deals new routes are planned and hence proper
numbers of vehicles for distribution are analyzed and planned.
4. Planning of empties: The new empties or bottles required are 1/5 times of the target that
has been set the coming year.
PRICING
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Pricing is one of the most difficult tasks among the four P's. Decisions on pricing are the most
important in marketing. Strategy marketing executives do not give pricing special authority.
There is not pricing specialist in the same sense as there is an advertising specialist or a
distribution specialist. This is perhaps because price decisions are not restricted to one
particular department. They cut across all department of business form production to
advertising and distribution.
It is always necessary to first look any product in the light of the following criteria before
deciding on a price.
1. The potential demand for the product.

2. The time it will take before the product begins to yield profits.
3. The elasticity of demand.
4. The target groups.
5. What promotional strategy can be employed and how much of the price should be
included in the promotion?
6. What kind of distribution arrangement is necessary?
7. At what state of the product life cycle is the product?
Pricing decisions interconnect marketing actions with the financial objectives of the enterprise.
Among the most important marketing variable influenced by pricing decision are:
1. Sales volume.
2. Profit margins.
3. Rate of return on Investment.
4. Trade margins.
5. Advertisement and sales promotion.
6. Production image.
7. New product development.
Pricing strategy determines the firms position in the market vis-à-vis its competitors.
Marketing effectiveness of pricing policy and strategy should not suffer merely on account of
cost and financial criteria.
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Coming to the pricing of soft drinks (bottled). It is not possible to get the correct information
regarding the criteria used for price fixing on account of its secret nature. The retail price
charged in the market for various years for flavor non-flavor.
Price(Rs.)/Bottle
Year
1993 5.00
1994 5.50
1995 6.00
1996 6.50
1997 7.00
1998 8.00
1999 9.00
2000 9.00
2001 7.00
2002 8.00
2003 8.00
2004 8.50
2005 8.00
2006 10.00
2007 8.00
2008 8.00
MERCHANDISING
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Merchandising is the different between a sale and missed opportunities. It is required to make
the trademark visible and attractive at the point of sale (pos.). This is because the consumer's
attention is divided between different brands. Therefore in-store merchandising is one of the
many strategic responses that FMCG companies must develop to stay ahead of their
competitors.
Principles of Merchandising:
1) Location: Make sure products and equipment are in the best selling areas of the
business location.
2) Inventory Management: The amount of space in each outlet should reflect the
current market share.
3) Package Positioning: Make sure products are easily accessible for the consumer to
purchase. Heavier packages should be placed on the lower shelves.
4) Stock Rotation: When restocking shelves, bring older product to the front and pace
fresh product at the back.
5) Brand Order: The brands should be placed in a specific order so as to render different
brands one after another so as to give consumer different choices at once.
6) Point of Purchase: Materials that help consumers easily find products and illustrate
current promotions and savings.
7) Pricing: All point-of-purchase materials contain a price message and individual

packages should convey what the item costs.
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8) Housekeeping: The areas that present our products should be neat, clean and tidy at
all times.
9) Facing all the Labels: Turn cans of bottles so that all the labels are facing the same
way. This enhances product presentation, which creates impulse purchases.
a) The Corporate Block Set: The prescribed way to lay out the display so that
company places all packages together in brand order.
Key Fundamentals of Merchandising:
1. Impulse purchases: Approximately 70% of Coca-Cola beverage purchases are impulse

purchases. To encourage impulse purchasing, it is considered to create a situation in
which consumers will want to purchase something they did not intend to purchase
when they entered the store.
2. Trademark recognition: The Coca-Cola trademark is the most recognized in the world
and this trademark is located on all the merchandising elements.
3. Expandable consumption: Expandable consumption means that the consumption or

usage of products increases with the amount of product purchases. The more a
consumer buys, that person will consume.
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MARKETING MIX
1. Pepsi Sales Club
This club is for retailers. In this approach retails are given some points once in a month
depending upon how they are using the display material provided by the company to them.
This material consists of Fridges, DPS boards, Glow sign boards, Display bottles (500 ml, 1 ltr.
etc) Stands, Paintings, Racks, Posters etc. Depending upon these, retailers are rewarded by
certain gifts from the company.
The retailers are participating in these schemes very curiously. But few of the retailers found
furious and angry because they had lost the points because of miscommunication or lack of
guidance. Therefore they needed some kind of guidance from the company. It would be a
better idea that our salesman who are distributing the beverages to the retailers can be
equipped by the appropriate training so that he can guide the retailers about how to use their
display material to 100% of their strength and able to tell about the new schemes convincingly.
2. Schemes
PepsiCo India comes out with the schemes on their different products many times in the year.
Most of these schemes are made to benefit the retailers. Some of the schemes are as follows:
 1 bottle of 2 lt. free with 2 ltr. Carton pack.
 2 bottle of 500 ml free with one 500 ml carton pack.
 2 bottle of Pepsi blue 500 ml free with one 500 ml bottle pack of Pepsi blue.
 12 tetra packets of tetra slice orange free with one tetra pack of slice orange.
 6 tetra packets of tetra slice mango free with one tetra pack of slice mango.
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These schemes keep on changing depending upon the stock. Beverages companies are giving
these schemes despite of acute shortage of soft drink segment to meet the competition, to
make sure the availability their brands and sometimes to satisfy and benefit the retailers and
the end consumers.
3. Advertising
Through the consumers survey it has been proved that the T.V. commercials and signage’s
affect the consumer buying behavior by approximately 80%. May be therefore only PepsiCo is
investing huge finances in the T.V. commercials and other signages, big names of Indian film
industries and sports heroes are being proposed to become the brand promoters and brand
ambassadors. Sachin Tendulkar, Amitabh Bachhan, Karina Kapoor and more are being offered
huge amount for carrying out the promotions. Pepsi’s T.V. advertisement in which Sachin
Tendulkar whistles at the end has maximum recall value. The latest youth icon Mahindra Singh
Dhoni is promoting Pepsi as a “Youngistaan”drink.The latest slogan”Ye Hai Youngistaan Meri
Jaan” is very popular. The other modes of advertisement are following:
 Television Commercials
 Posters
 Display Sign Boards
 Glow Sign Boards
 Date Calendars
 Radio Commercials
 Hoardings
 Cinema Hall Tickets
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4. Promotion through Restaurant and Cinema Hall Holdings
PepsiCo is tying up with different chains of restaurants and fast food centers like Pizza Hut to
promote the Pepsi and its other brands like Miranda, Mountain Dew etc. These restaurants are
authorized to keep and use the merchandising assets of Pepsi. Usually these kinds of
restaurants and fast food chains are in contract with the PepsiCo so that they cannot promote
any other brand. In return, either they get some share of profit from PepsiCo or some other
kind of benefits from Pepsi.
5. Merchandising assets
PepsiCo also try to promote their brands by providing their retailers and dealers some display
items. Some of them are as follows:
 Fridges
 Stands
 Racks
 Air Hangers
 Display Bottles
PepsiCo provide the above things to the retailers to use them in promoting companies brands
and products, and provide refrigerators to the retailers in the hope that these retailers only
use these assets in promoting and keeping available all time the PepsiCo’s products. But it is
not true in most of the cases. Retailers usually use these assets of one company in such a way
that it benefits another company. They usually store both soft drink brands (Pepsi and Coke) ,
other items like Paneer, Butter, milk, Chocolates etc. Sometimes they do it unknowingly to
meet out their requirements and sometimes they do it knowingly.
Some of the deficiencies of the Company that promotes the retailers to do so are:
a) To conserve space and electricity in their shop.

b) To show jealous to opposite brand so that they also provide these assets.
c) Irregularity of the salesman to the retailer shop.
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BRANDING
Brand image is defined as the set of association linked to the brand that consumers hold in
memory. Positive brand image is associated with consumer loyalty consumer beliefs about
positives and value, and a willingness to search for the brand. Advertising plays an important
role in establishing a favorable brand image.
In this chapter, we would enumerate the image associations for Pepsi and Sprite. Not to say
the least, Pepsi always ridiculed the coke strategies of brand promotions. Starting from
“Nothing official about it” to “eat cricket sleep cricket, drink Pepsi”. The most recent and
featuring the look- alike of Hrithik Roshan- the latest Hindi movie heartthrob – head also run
into trouble waters with coke. Well then internationally coke always ignored Pepsi. They have
gained over such a campaign too. But if the statistics in India is any scale for them, this
strategy has not worked for them in India. The Coca-Cola stable has therefore launched their
internationally renowned sprite- lemon drinks – in India aiming Jibes at Pepsi. Their punch line
saying “Don’t so for what’s shown to you, use your common sense – sprite bhujayee only
pyass ---- baki sab bakwaas.
Well these jibes against Pepsi were an instant hit and sprite derived considerable mileage out
of it through good recall for the responders.
The brand image associated with Pepsi:
In the last chapter we discussed about the users image association of the brand. There we
would do the same directly from the point of view of the brand owner. As mentioned earlier
advertising plays an important role in establishing a favorable brand image. The various
advertisements brought out are Pepsi like.
 Celebrity endorsement
 Contemporary music endorsement
 Lifestyle endorsement
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At large Pepsi ad’s always projected on the entertainment factor. ‘Connecting to basal youth
movement and needs is what makes a brand meaningful to your people” says the vice
president international marketing of Pepsi, Mr. Ron Coughlin.
The peppy youths of the Pepsi cops to associate themselves with these celebrities, music
lifestyles (MTV) and their favorite sports stars. Pepsi uses the celebrity advertisements as
testimonials. That is the celebrity – an actor or sportsman or a musician- has personally used
the product or service and is in a position to attest to its puerility, then he or she may give a
testimonial carting its benefits.
Thus the image projected by Pepsi is that attracting the generation ‘X’ pleases refers
characteristics of generation Xerox from the previous chapter’s user responses. The generation
Xerox is not big spends at the same time. They find it extremely difficult to settle on their job
and such. The pleasure of this segment of people is life like music and sincerity are their likes.
The project of the Pepsi ads is directly aimed at this segment of people. But then they have a
strategy to bring the generation of these generations Xerox. That is the people at Pepsi call the
generation next. The overtly technology obsessed generation. Their ad perpetuating the
generation next companies has also hit the India successes
In the care of Pepsi brand has been able to hold on the age between 14 to 32 on a trendy
basis, whereas the rest upward link of the customer segment doesn't it on a utilitarian basis.
The range at which the people buy it as trendy or utilitarian also changes. From the age of 14
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as it go upwards they may be to reduce these phenomena, MTV was reaped into advertise/
associate the Pepsi brand.
This is contrary to the phenomena Pepsi has experienced in other parts of world. That is
because the product was in the mind of the body boomers quiet their youth. Whereas in India
the situation is different. The mind set was on a fire when there were no Pepsi and coke. This
is evident by their opinion about the other brands, which is available in India. That is ThumsUp
and Campa Cola. These brands still have a top-of- the mind recall in this generation. Therefore
though the fresh campaign like the along with MTV and slogans like “Ye Hai Youngistaan Meri
Jaan”, would be to change this situation to pepsi
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RESEARCH METHODOLOGY
Research methodology is a way to systematically solve the research problem. It may be

understand as a science of studying how research is done scientifically. In it we study the
various steps that are generally adopted by a researcher in studying his research problem
along with the logic behind them.
It is necessary for the researcher to know not only the research methods but also the
methodology. Researchers not only need to know which of these methods or techniques, are
relevant and which are not, and what would they mean and indicate and why.
Researchers also need to understand the assumptions underlying various techniques
and they need to know the criteria by which they can decide that certain techniques and
procedures will be applicable to certain problems and others will not. All this means that it is
necessary for the researcher to design his methodology for his problem as the same may differ
from problem to problem.
Quite frequently these days’ people talk of research, both in academic institutions and
outside. Several research studies are undertaken and accomplished year after year. But in
most cases very little attention is paid to an important dimension relating to research, namely
that of research methodology. The result is that much of research, particularly in social
sciences, contains endless word - spinning and too many quotations. Thus a great deal of
research tends to be futile. It may be noted, in context of planning and development that the
significance of research lays in its quality and not in quantity. The need, therefore, is for those
concerned with research to pay due attention to designing and adhering to the appropriate
methodology throughout for improving the quality of research. The methodology many differ
from problem to problem, yet the basic approach towards research remain the same.
The purpose of methodology section in the report making is to describe the research
process that is followed while doing the main part. The research design plays a pivotal role in
51 | P a g e UIM-MBA (2009-11)
the quality and content of the data in making of any project report. The type of research
design chosen is seen to have a bearing on all the aspects of report writing.
The research design undertaken for the study was an exploratory one. The reasons for using
an exploratory research method were to obtain qualitative data and also since the nature of
study is as such that it required the exploration of various aspects within and outside the
company. This method also gave the officials interviewed the utmost freedom in responding
and was highly contributory in getting incisive information.
In order to carry out a well researched analysis efforts were taken to collect enough
information about both the companies. For this purpose various primary and secondary
sources were used. This would however include the research design, the sampling procedure,
and the data collection method. This section is perhaps difficult to write as it would also
involve some technical terms and may be much of the audience will not be able to understand
the terminology used.
In our summer training report the main emphasis has been given on the collection of
data through the questionnaires or the survey sheets.
The process of data collection has been conducted by Surveys. This method of data
collection is very useful in extensive enquiries.
The data has then been tabulated and analyzed and the results are been shown. The final step
is the Report Generation, which is the main motive of the summer training and a significant
process of the MBA curriculum.
The methodology followed by the researcher, during the preparation of the report was:
 Primary Data
 Secondary Data
 Personal Visits
52 | P a g e UIM-MBA (2009-11)
PRIMARY DATA-Primary data is that kind of data which is collected by the investigator
himself for the purpose of the specific study. The data such collected is original in
character. The advantage of this method of collection is the authentic. A Set Of Questions
Were Put Together In The Form Of Questionnaire With 17 Questions. The method of
sampling was the convenience method. The population size was of 200.
SECONDRY DATA-When an investigator uses the data that has been already collected by
others is called secondary data. The secondary data could be collected from Journals,
Reports, and various publications. The advantages of the secondary data can be –It is
economical, both in terms of money and time spent. I also did the same and collected
secondary data from various internet sites like Pepsiindia.com, cocacola.com and many
more. The researcher of the report also visited various libraries for collection of the
introduction part
PERSONAL VISITS-As a part of the analysis, it was necessary to visit the wholesalers and
retailers of different areas in Lucknow. As it would always help me knowing the nature of
respondents in different areas.
53 | P a g e UIM-MBA (2009-11)
SWOT ANALYSIS
STRENGTHS
DISTRIBUTION NETWORK: The Company has a strong and reliable distribution network. The
network is formed on the basis of the time of consumption and the amount of sales yielded by
a particular customer in one transaction. It has a distribution network consisting of a number
of efficient salesmen, 10, 00,000 retail outlets and 8000 distributors. The distribution fleet
includes different modes of distribution, from 10-tonne trucks to open-bay three wheelers that
can navigate through narrow alleyways of Indian cities and trademarked tricycles and
pushcarts.
STRONG BRANDS: The products produced and marketed by the Company have a strong
brand image. People all around the world recognize the brands marketed by the Company.
Strong brand names like Pepsi, Miranda, Mountain Dew, 7 UP and Slice add up to the brand
name of the PepsiCo Company as a whole.
LOW COST OF OPERATIONS: The production, marketing and distribution systems are very
efficient due to forward planning and maintenance of consistency of operations which
minimizes wastage of both time and resources leads to lowering of costs.
WEAKNESSES
PROMOTIONAL STRATEGIES: PepsiCo is less concentrated on its promotional assets and
equipments while on the other hand Coke is concentrating more and more over this and
winning the trust and confidence of the retailers and pushing them to promote Coke products
rather than PepsiCo products.
MARKET SHARE: PepsiCo is far behind over the comparison of the market shares of the two
soft-drink giants. PepsiCo is holding only 42% shares while Coke is leading with 58% market
shares and having a good reputation in market.
54 | P a g e UIM-MBA (2009-11)
LOW EXPORT LEVELS: The brands produced by the company are brands produced worldwide
thereby making the export levels very low. In India, there exists a major controversy
concerning pesticides and other harmful chemicals in bottled products including Pepsi.
In 2003, the Centre for Science and Environment (CSE), a non-governmental organization in
New Delhi, said aerated waters produced by soft drinks manufacturers in India, including
Multinational giants PepsiCo and Coca-Cola, contained toxins including lindane, DDT,
Malathion and chlorpyrifos- pesticides that can contribute to cancer and a breakdown of the
immune system. Therefore, people abroad, are apprehensive about PepsiCo products from
India.
SMALL SCALE SECTOR RESERVATIONS LIMIT ABILITY TO INVEST AND ACHIEVE

ECONOMIES OF SCALE: The Company’s operations are carried out on a small scale and due
to Government restrictions and ‘red-tapism’, the Company finds it very difficult to invest in
technological advancements and achieve economies of scale.
OPPORTUNITY
GROWING MARKET: The PepsiCo Company has a good chance to expand more and attain
greater no of market shares with the rapidly growing market which is expanding at the rate of
20% every year. It can give big jerk to its major competitor Coke by concentrating over its
marketing and promotional strategies and by developing sound relation with its distributors,
retailers, etc.
LARGE DOMESTIC MARKETS: The domestic market for the products of the Company is very
high as compared to any other soft drink manufacturer. PepsiCo India claims a 42 per cent
share of the soft drinks market; this includes a 37 per cent share of the Pepsi market. Other
products account for 5 per cent market share, chiefly led by Miranda. The company appointed
50,000 new outlets in the first two months of this year, as part of its plans to cover ten lakh
outlets for the coming summer season and this also covered 3,500 new villages.
EXPORT POTENTIAL: The Company can come up with new products which are not
manufactured abroad, like Slice etc and export them to foreign nations. It can come up with
55 | P a g e UIM-MBA (2009-11)
strategies to eliminate apprehension from the minds of the people towards the PepsiCo
products produced in India so that there will be a considerable amount of exports and it is yet
another opportunity to broaden future prospects and cater to the global markets rather than
just domestic market.
HIGHER INCOME AMONG PEOPLE: Development of India as a whole has lead to an increase
in the per capita income thereby causing an increase in disposable income. Unlike olden times,
people now have the power of buying goods of their choice without having to worry much
about the flow of their income. The beverage industry can take advantage of such a situation
and enhance their sales.
THREATS
IMPORTS: As India is developing at a fast pace, the per capita income has increased over the
years and a majority of the people are educated, the export levels have gone high. People
understand trade to a large extent and the demand for foreign goods has increased over the
years. If consumers shift onto imported beverages rather than have beverages manufactured
within the country, it could pose a threat to the Indian beverage industry as a whole in turn
affecting the sales of the Company.
TAX AND REGULATORY SECTOR: The tax system in India is accompanied by a variety of
regulations at each stage on the consequence from production to consumption. When a
license is issued, the production capacity is mentioned on the license and every time the
production capacity needs to be increased, the license poses a problem. Renewing or updating
a license every now and then is difficult. Therefore, this can limit the growth of the Company
and pose problems.
SLOWDOWN IN RURAL DEMAND: The rural market may be alluring but it is not without its
problems: Low per capita disposable incomes that is half the urban disposable income; large
number of daily wage earners, acute dependence on the vagaries of the monsoon; seasonal
consumption linked to harvests and festivals and special occasions; poor roads; power
56 | P a g e UIM-MBA (2009-11)
FINDING & ANALYSIS OF SURVEY FORM
Market Shares in India:
PepsiCo - 42
Coca-Cola - 58
Market Shares in India (Brand Wise):
Pepsi - 51
Coke - 49
Market Shares of Companies in Lucknow City:
Pepsi - 49
Coca-Cola - 51
Total Number of Outlets Surveyed - 175
Channels:
Grocery - 70
Convenience - 55
Eatery - 23
Leisure - 25
Canteens - 2
Presence of Brands in different Outlets:
Outlets with PepsiCo’s stock only - 21
Outlets with Coca-Cola stock only - 25
Outlets with Both - 129
57 | P a g e UIM-MBA (2009-11)
Daily Sales (in crates):
0-2 - 15%
3-5 - 44%
6-10 - 25%
More than 10 - 16%
Cooling Equipments:
Pepsi - 38
Coke - 70
Own - 65
Both - 12
Glow Sign:
Pepsi - 05
Coke - 08
Both - 03
None - 159
Flex Board:
Pepsi - 15
Coke - 04
Both - 02
None - 154
58 | P a g e UIM-MBA (2009-11)
Paintings:
Pepsi - 04
Coke - 03
Both - 01
None - 168
Assets:
Pepsi - 35
Coke - 40
Both - 15
None - 101
59 | P a g e UIM-MBA (2009-11)
ANALYSIS
MARKET SHARES OF BOTH COMPANIES IN INDIA
PEPSI 42
COKE 58
SHARES IN INDIA
43
PEPSI
COKE
57
PEPSI IS HAVING 42% SHARES WHILE COKE HAVE 58% SHARES PROVING IT TO
BE A WORLD LEADER IN SOFT DRINK. PEPSI IS FAR BEHIND IN COMPARISION
TO COKE.
MARKET SHARES OF BRANDS PEPSI AND COKE
60 | P a g e UIM-MBA (2009-11)
PEPSI 48
COKE 52
Market Shares
48%
52% PEPSI
COKE
PEPSI OF PEPSICO IS HAVING 48% MARKET SHARES WHILE COKE OF COCA-COLA

IS HAVING 52% SHARES. THIS SHOWS THAT BOTH BRANDS ARE NEARLY EQUAL
IN MARKET SHARES.
MARKET SHARES OF PEPSI AND COKE IN LUCKNOW
61 | P a g e UIM-MBA (2009-11)
PEPSI 49
COKE 51
Sales
PEPSI
COKE
49%
51%
PEPSI is the leader in soft drink market in Lucknow City with 49% of market
share followed by its rival COKE (51%).
CHANNELS OF SALE
TOTAL OUTLETS : 175

GROCERY 70
CONVENIENCE 55
62 | P a g e UIM-MBA (2009-11)
EATERY 30
LEISURE 25
CANTEENS 2
Sales
25 2
70
GROCERY
30 CONVENIENCE
EATERY
LEISURE
CANTEENS
55
The main channels of sale are grocery stores. 70 grocery stores were holding the stock of
soft drinks. Lagging behind are Convenience with 55 like clubs, Restaurants, hot spots,
Cyber cafes. Then Eatery with 30 likes small dhabas, eatery shops. Then Leisure ones with
25 like tea stalls, juice corners etc. Last one is canteens with 2. This shows that retailers
prefer to stock soft drinks as their supporting sale element.
BRANDS COVERED BY DIFFERENT OUTLETS
TOTAL OUTLETS 175
OUTLETS WITH PEPSI ONLY 29
OULTETS WITH COKE ONLY 25
63 | P a g e UIM-MBA (2009-11)
OUTLETS WITH BOTH 129
Sales
29
25 PEPSI
COKE
BOTH
129
Mostly all the outlets have the stocks of both companies. Outlets with only Pepsi’s stock are 29
and coke is (25).
DAILY SALES OF RETAILERS (in crates)
0-2 Crates 15%
3-5 Crates 44%
6-10 Crates 25 %
More than 10 16%
64 | P a g e UIM-MBA (2009-11)
Sales
16% 15%
Crates 0-2
Crates 3-5
Crates 6-10
More than 10
25%
44%
Maximum no of retailers have a daily sales between 3-5 crates which is 44% while 6-
10 crates are sold only by 25 % of retailers and retailers who have daily sales of more
than 10 crates who have very high sales are 16 %.
COOLING EQUIPMENTS PROVIDED BY BOTH COMPANIES
PEPSI 38
COKE 70
OWN 65
BOTH 12
65 | P a g e UIM-MBA (2009-11)
Sales
38
12
PEPSI
65
COKE
OWN
BOTH
70
COKE HAS PROVIDED HIGHEST NO OF COOLING EQUIPMENTS (70) WHILE PEPSI HAVE ONLY 38
COOLING EQUIPMENTS IN THE CITY AND 65 OUTLETS HAVE THEIR OWN COOLING
EQUIPMENTS MAY BE DUE TO LESS SATISFACTION FROM THE COMPANY, HIGHER COST OF
FRIDGES OR ALREADY HAVING THEIR OWN COOLING EQUIPMENT.
BOTTLES OF PEPSI AND COKE IN FRIDGES
PEPSI 20%
COKE 38%
OWN 35%
BOTH 07%
66 | P a g e UIM-MBA (2009-11)
Sales
20%
7%
PEPSI
35% COKE
OWN
BOTH
38%
PepsiCo’s refrigerator are not being used to optimum by the retailers in promoting PepsiCo’s
product as 20% bottles of the Coca-Cola were found in PepsiCo’s fridges.
GLOW SIGNS OF BOTH COMPANIES IN THE CITY

PEPSI 05
COKE 08
BOTH 03
NONE 159
67 | P a g e UIM-MBA (2009-11)
Sales
8
5 3
PEPSI
COKE
BOTH
NONE
159
COKE HAVE LARGER NUMBER OF GLOWSIGNS IN THE CITY IN COMPARISION TO PEPSI THAT
MEANS COKE IS MORE CONCENTRATED OVER PROMOTIONAL SALES AND SATISFYING THEIR
RETAILERS. BUT STILL THEIR ARE 159 OUTLETS WHO DON’T HAVE ANY GLOW SIGN BOARD.
FLEX BOARD OF BOTH COMPANIES IN THE CITY

PEPSI 15
COKE 04
BOTH 02
NONE 154
68 | P a g e UIM-MBA (2009-11)
Sales
4
15
2
PEPSI
COKE
BOTH
NONE
154
PEPSI HAVE LARGER NUMBER OF FLEX BOARD IN THE CITY IN COMPARISION TO COKE THAT
MEANS PEPSI IS MORE CONCENTRATED OVER PROMOTIONAL SALES AND SATISFYING THEIR
REATAILERS WHILE STILL THERE ARE 154 OUTLETS WHO DON’T HAVE ANY FLEX BOARD.
PAINTINGS OF BOTH COMPANIES IN THE CITY
PEPSI 04
COKE 03
BOTH 01
NONE 168
69 | P a g e UIM-MBA (2009-11)
Sales
4 3
1
PEPSI
COKE
BOTH
NONE
168
PEPSI HAS GREATER NUMBER OF PAINTINGS IN COMPARISION TO COKE BUT MOST OF

PAINTINGS DONE BY PEPSI WERE VERY OLD. COKE’S PAINTINGS ARE INCREASING
CONTINOUSLY IN NUMBER WHICH SHOWS THAT IT IS MORE CONCENTRATED OVER ITS
PROMOTION.
ASSETS PROVIDED BY BOTH COMPANIES IN THE CITY
PEPSI 35
COKE 40
BOTH 15
NONE 101
70 | P a g e UIM-MBA (2009-11)
Sales
35
PEPSI
COKE
101 BOTH
NONE
40
15
PEPSI HAVE ONLY 35 ASSETS (RACKS, AIR HANGER, STAND) IN THE CITY WHILE COKE HAVE 40.
THIS SHOWS THAT COKE IS CONCENTRATING MORE OVER ITS PROMOTION AND FORCING THE
RETAILERS TO SELL COKE’S PRODUCT ONLY TO CAPTURE THE MARKET.
PROBLEMS
There are many different reasons for the low rate of use of the merchandising assets of the
company. Few of them are as follows:
Shortage: Usually during the peak season when the retailer requires most, there is shortage of
different products and packing in the delivery van. And in case there is no shortage, then there
are still many places left where the delivery van is unable to reach or delivery man wishes not
to go there.
Empty Bottles: Coca-Cola beverages India is picking up empty bottles of PepsiCo brands while
PepsiCo is not doing so. This is creating huge shortage of availability of PepsiCo stock in the
71 | P a g e UIM-MBA (2009-11)
market. Since at one side when PepsiCo’s salesman or delivery van reach the retailer shops,
they don’t find enough empty bottles of Pepsi and they do not exchange the available bottles
of Coca-Cola due to which PepsiCo stock starts getting blocked.
Irregularity of the salesman: Sometimes the sales men don’t visit each shop on their route
regularly because of no. of reasons:
 There are too many shops on each route and it is quite difficult for him to entertain all
the shops properly.
 Sometimes he got out of stock of certain products in the midway due to high demand
of those brands, and he comes back.
 Sometimes he does not go on some routes thinking that the other sales person or van
must have covered that route as a result no one reaches there and the competitor gets
the benefit.
 Sometimes because of the long routes he ran out of time because after 8 PM – 9 PM,
most shops are likely to get closed.
Unfulfilled Promises of the Company Professionals : Sometimes retailers asks the salesman and
company professionals which are visiting them for different merchandising assets about which
these people cannot do anything but they make false promises to those retailers because of
which retailers gets annoyed and try to reduce the sales of Pepsi and its other brands.
Fewer visits of the Company Professionals: Number of visits, which the company professionals
make to the market, is very less. Some retailers even complained that since the day they have
started the business they haven’t seen anybody from the company or no one came to hear
their complaints.
Trust: Number of Retailers found complaining about the salesman that they don’t’ tell them
about the schemes and other offers. In other words, they do not have trust on the
salesperson.
72 | P a g e UIM-MBA (2009-11)
Schemes: Many of the retailers found complaining about the schemes. Actually they found the
schemes existing but they are not guided or told about the schemes that creates distrust
towards company.
CONCLUSION
After conducting the research I found that there are two categories of retailers. Out of the two
first one is of those retailers, who just want to increase their assets, for them the sale doesn’t
matter according to them they can only increase the sale if company will invest in them or in
their shops. These types of retailers will only work positively for the company, which invest in
them hugely. And if at any moment they found that company has lost or lowered their interest
in them, they will again shift to other major player or the leading ones.
73 | P a g e UIM-MBA (2009-11)
Other kinds of retailers are those who are more bothered about working hard and build their
reputation in the market. These types of retailers are using the merchandising assets to their
optimum level. And sometimes, if they are unable to do so it because of the irregularity of the
sales man (when the salesman on the route gets changed) or because of the shortage of
different products/packaging.
There is requirement of the continuous visit of the company professionals to these retailers so
that they can understand the market and suggest changes accordingly. Despite of these entire
salesman and other company professionals who visit these retailers must not do the false
promises. Due to this, retailers lose their confidence towards the company and start working
negatively.
Company must concentrate towards increasing its promotional equipments and assets so that
it can mark its presence easily and to tackle the threats from its competitor.
There is also the need of transparent schemes and marketing mix that the retailers can
understood more properly.
SUGGESTIONS AND RECOMMENDATIONS
 Company should do something to meet its demand in the market. At Present, there is
acute shortage of Pepsi 2 ltr Family pack, 200 ml and tin pack. Because of this shortage
Pepsi is not even loosing the present market share but even providing way to the rivals.
For this either plant size can be extended or Company should concentrate more over
its most selling brands.
74 | P a g e UIM-MBA (2009-11)
 Either Pepsi should start picking up the Coca-Cola bottles and can exchange them with
Coca-Cola later on or they must reach the market before the Coca-Cola delivery van to
prevent blockade of PepsiCo stock.
 Since the market capacity is huge, Salesman needs time at every retailer to satisfy him
and tell him about the different products, packaging, schemes etc. it’s quite difficult for
him to visit every shop on his route every day. Therefore, there is necessity to divide his
route into two parts and increase the total no. of routes.
 Sometimes sales man for different routes keeps on changing very frequently (in a very
short period). This should be prohibited because every sales man needs time to get
adjusted to a particular route and even to know all the shops on the route.
 A proper chart should be maintained on everyday sales of each route depending on this
route van should be shipped accordingly. So that the sales man must not gets out of
stock while on the route.
 Sales man is working for 15 to 16 hours regularly during the peak season at very low
reimbursement which may sometimes, kills his interest. Therefore there is need of
fixing up his working hours. Delivery van should be ready when he comes into the
depot in the morning. There should be different laborers for shipping or de-shipping
the delivery vans.
 Company professionals must not take the false promises about the merchandising
assets with the retailers. These retailers must get the proper information and guidance
about the company policies on the merchandising assets. So that there should be no
generation of frustration.
75 | P a g e UIM-MBA (2009-11)
 Though the Glow Sign and Display Sign Boards are being used by the retailers
satisfyingly but still there is need of the guidance for the retailers.
 Schemes should be transparent and made clear to all the retailers.
 As maximum no. of retailers are selling around 3 to 5 crates daily. Our Schemes should
be revolving around this percentage only. And while formatting different, schemes
should be kept in mind.
 For this salesman can be provided with some kind of guidance/training, so that they
can clear the queries of the customers/retailers about the different schemes/proposals.
 Retailer benefit schemes, which the company launches time by time during the whole
year, must be made clear to all the retailers.
 Customers can be informed about the schemes through the brochures. Brochures can
be distributed to all the retailers for the schemes that barely being launched once in a
year. And for daily schemes which get change on daily basis and which depends on the
stock availability providing details about the day’s schemes/ after a paper/ pamphlet
on different products can be sticked to the delivery van signed by the TDM or ASM or
anybody authorized. So that every retailer if needed/required can verify himself about
the daily schemes.
 Company professionals should visit the field more regularly and they must try to visit
every retailer at least once in a month.
 A proper trust and relationship building process is required with the retailers, which
need to be worked on.
76 | P a g e UIM-MBA (2009-11)
LIMITATIONS
Though I have put in all my earnest efforts in attempt to penetrate deep into the project and I
have received individual help from my project guide who was very helpful and cooperative in
this regard. I would still like to list down certain limitation under which the study was
conducted.
77 | P a g e UIM-MBA (2009-11)
(1) Time was one of the major constraints that affected the study, as this was the topic that
required in depth and extensive research.
(2) There might be possibility of inaccuracy in research finding due to inadequate available
data.
(3) The responses from the respondent’s side were another factor which I believe has certain
effect in my research finding since it may be biased.
(4) As I am a student of MBA certain technical details of the product were beyond my
understanding limits.
(5) Though my guide gave his valuable time to me, shares the things with me but I still think
that this area can be further explored.
BIBLIOGRAPHY
BOOKS AND MAGAZINES
 Kothari, C.R., (2006) “ Research Methodology”, 6 th Edition, Vishwa Publication

 William G. Richmond (2007) “Research Methodology”, 7 th Edition, Thomson Groups
 Kotler, Phillip (2006), Marketing Management, 12 th Edition, Pearson Education
 Armstrong & Kotler (2007) “Marketing and Introduction”, 7 th Revised Edition, Pierson Education
78 | P a g e UIM-MBA (2009-11)
 Ramaswamy, V.S. (2004) “Marketing Management”, 3 rd Edition, Macmillan Groups
JOURNALS
 Mukherjee, Kaushik “Coca-Cola’s Branding Strategies in India”
ICFAI Journals: Volume V, Number 1, March 2008
 Dr. Jayant Sonwalker, Geeta Neema “A study of factors responsible for brand preferences in
FMCG products among college students”
IMS Journals: Volume 5, Number 1, Jan-Jun 2008
 Madhavaiah, C. , Durga Rao, S., “Defining Relationship Marketing: A review of research”
Asia-Pacific Journals: Volume 3, Number 2, Jul-Dec 2007
WEBSITES
www.pepsiindia.com
www.pepsizone.com
www.pepsico.com
www.cocacola.com
www.hindustantimes.com
APPENDIX
QUESTIONAIRE
This survey is being conducted solely for academic purpose only.
79 | P a g e UIM-MBA (2009-11)
The findings shall be used for the above purpose only.
NAME OF OUTLET: ------------------------------------
ADDRESS: -----------------------------------------------
NOTE: (Given below are some questions on which your opinion is needed. Kindly answer the question
by ticking in the right box.)
=============================================================================
1. Which type of shop do you have?
a) Grocery b) Convenience c) Eatery d) Leisure e) Canteen
2. Which Company’s stock do you sale?
a) Pepsi b) Coke c) Both d) Other
3. Approximately how many crates do you sale daily?
a) 0-3 b) 4-8 c) 9-12 d) 13-15
4. Out of Pepsi and Coke whose Refrigerator do you have?
a) Pepsi b) Coke c) Own d) Both
5. What are the reasons that you are not using the refrigerator/Ice Box to its full Strength?
a) Shortage b) Empty Problem c) Irregularity of the Sales man d) Other
80 | P a g e UIM-MBA (2009-11)
6. Out of Pepsi and Coke which Company’s Glow Sign Board do you have?
a) Pepsi b) Coke c) Both d) None
7. Out of Pepsi and Coke which Company’s Flex Board do you have?
8. Out of Pepsi and Coke which Company’s Painting do you have in your shop?
9. Out of Pepsi and Coke which Company’s assets do you own?
10. How do you get the display material from the Company?
a) Schemes b) Gifts c) Sharing/ draft d) Other
81 | P a g e UIM-MBA (2009-11)

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SUMMER TRAINING REPORT

COMPARATIVE ANALYSIS OF MARKETING EQUIPMENTS

Submitted in Partial Fulfillment of the requirement

Submitted to: Submitted by:

Vikas Tandon Amit Kant Ojha

1|Page UIM-MBA (2009-11)

Amit Kant Ojha

UIM MBA (2009-11)

2|Page UIM-MBA (2009-11)

3|Page UIM-MBA (2009-11)

OVERVIEW: SOFT DRINK INDUSTRY 8

COMPANY PROFILE: PEPSICO 11

COMPETITOR PROFILE: COCA-COLA 21

MICHAEL PORTER MODEL FOR PEPSI 24

STRATEGIES OF PEPSI AND COKE 27

MARKET PLANNING AND RESEARCH 35

4|Page UIM-MBA (2009-11)

3. ANALYSIS AND INTERPRETATION 47

SURVEY FORM ANALYSIS 50

5|Page UIM-MBA (2009-11)

1. MARKET SHARES OF BOTH SOFT DRINK COMPANIES 52

6|Page UIM-MBA (2009-11)

7|Page UIM-MBA (2009-11)

8|Page UIM-MBA (2009-11)

9|Page UIM-MBA (2009-11)

convenience foods and

GLOBAL MARKETING NETWORK

According to the famous economist Lord J. M. Keynes-every investment creates employment.

The system generates substantial employment in marketplace activities such as signages,

  Coca-Cola business system directly employs approximately 6,000 local people in

Characteristics of the market segment: -

5. Special Events Market:

6. High Visibility Market:

STRATEGIES OF PEPSI AND COKE

How soft drinks are made:

CLOUDY LIME MIRINDA LEMON

CLEAR LIME 7-UP

GREEN MOUNTAIN DEW

Distribution = Sales + Delivery + Merchandising + Local Account Management

Produced (Soft drink mix of all type of brands of Pepsi is prepared)

MARKET PLANNING AND RESEARCH

a) Understanding: Customer is important. This includes gaining a basic understanding of each

1. The potential demand for the product.

7) Pricing: All point-of-purchase materials contain a price message and individual

Key Fundamentals of Merchandising:

1. Impulse purchases: Approximately 70% of Coca-Cola beverage purchases are impulse

3. Expandable consumption: Expandable consumption means that the consumption or

1. Pepsi Sales Club

 1 bottle of 2 lt. free with 2 ltr. Carton pack.

 2 bottle of 500 ml free with one 500 ml carton pack.

a) To conserve space and electricity in their shop.

The brand image associated with Pepsi:

 Contemporary music endorsement

Research methodology is a way to systematically solve the research problem. It may be

SMALL SCALE SECTOR RESERVATIONS LIMIT ABILITY TO INVEST AND ACHIEVE

Market Shares in India (Brand Wise):

Market Shares of Companies in Lucknow City:

Total Number of Outlets Surveyed - 175

Presence of Brands in different Outlets:

Outlets with PepsiCo’s stock only - 21

Outlets with Coca-Cola stock only - 25

Outlets with Both - 129