INDUSTRY PROFILE

Beverage industry is one of the fast growing industries in India .it can be divided
into two sections i.e. carbonated and non-carbonated. The carbonated drinks that
can be further classified into cola, lemon orange, mango and apple segments.
Marketing includes all the activities like promotion, distribution, advertising etc. To
fulfill all the segments of consumers. Marketing is also to convert social needs into
profitable opportunities. So this topic provides all the essentials to theoretical
knowledge with practical knowledge and to inculcate the efficiency. It is also
requirement for the company to improve their service and product quality for
achieving their ultimate goal.
As far as the soft drink market is concerned, it is facing the cut throat competition
because of the availability of a large number of indirect as well as direct
competitors.
Single company offers the soft drink to the market in different taste and flavors. In
this industry entire range of flavors are produced by other competitors also.
More often it becomes impossible to differentiate between the same flavors of two
different brands, when served in plane container, range also. All these factors
together make the situation complicated. Besides both corresponding brands have
the similar price.

Overview of the Sector

The beverage industry consists of two major categories and eight sub-groups. The
non-alcoholic category is comprised of soft drink syrup manufacture; soft drink and
water bottling and canning; fruit juices bottling, canning and boxing; the coffee
industry and the tea industry. Alcoholic beverage categories include distilled spirits,
wine and brewing.

Evolution of the industry

Although many of these beverages, including beer, wine and tea, have been around
for thousands of years, the industry has developed only over the past few centuries.

The beverage products industry, viewed as an aggregate group, is highly fragmented.

This is evident by the number of manufacturers, methods of packaging, production
processes and final products. The soft drink industry is the exception to the rule, as it
is quite concentrated. Although the beverage industry is fragmented, ongoing
consolidation since the 1970s is changing that.

Since the early 1900s beverage companies have evolved from regional firms that
mainly produced goods for local markets, to today’s corporate giants that make
products for international markets. This shift began when companies in this
manufacturing sector adopted mass production techniques that let them expand. Also
during this time period there were advances in product packaging and processes that
greatly increased product shelf life. Air-tight containers for tea prevented absorption
of moisture, which is the principle cause of loss of flavour. In addition, the advent of
refrigeration equipment enabled lager beers to be brewed during the summer months.

Economic importance

The beverage industry employs several million people worldwide, and each type of
beverage grosses billions of dollars in revenue each year. Indeed, in several small,
developing countries, the production of coffee is the major support of the entire
economy.

Characteristics of the Workforce

Though the ingredients and production of beverages vary, generally the characteristics
of those employed in this industry have many commonalties. The process of harvesting
raw materials, whether they be coffee beans, barley, hops or grapes, employs low-
income, unskilled individuals or families. In addition to being their main source of
income, the harvest determines a large part of their culture and lifestyle.

In contrast, the processing of the product involves automated and mechanized

operations, usually employing a semi-skilled, blue-collar workforce. In the production
facility and warehouse areas, some of the common jobs include packaging and filling
machine operator, fork-lift operator, mechanic and manual labourer. The training for
these positions is completed onsite with extensive on-the-job instruction. As technology
and automation evolve, the workforce diminishes in number and technical training
becomes more important. This semi-skilled manufacturing workforce is usually
supported by a highly skilled technical group consisting of industrial engineers,
manufacturing managers, cost accountants and quality assurance/food safety
technicians.

The beverage industry for the most part distributes its products to wholesalers using
common carriers. However, soft drink manufacturers usually employ drivers to deliver
their products directly to individual retailers. These drivers-salesworkers account for
about one-seventh of the workers in the soft drink industry.

The more health-conscious atmosphere in Europe and North America in the 1990s has
led to a flat market in the alcoholic beverage industry, with demand shifting to non-
alcoholic beverages. Both alcoholic and non-alcoholic beverages, however, are
expanding considerably in developing nations in Asia, South America and to some
extent Africa. Because of this expansion, numerous local jobs are being created to meet
production and distribution needs.

SOFT DRINK CONCENTRATE MANUFACTURING

Process Overview
The making of the concentrate is the first step in the production of a carbonated soft
drink. At the beginnings of the industry, in the nineteenth century, both concentrate and
soft drink were manufactured in the same facility. Sometimes the concentrate was sold
to the consumers, who would make their own soft drinks. As the carbonated soft drink
business has grown, the concentrate and the soft drink manufacturing have become
specialized. Today, a concentrate manufacturing plant sells its product to various
bottling companies.

Concentrate plants are constantly optimizing their operation through systems

automation. As the demand for concentrate increases, automation has allowed the
manufacturer to satisfy the demand without expanding the size of the manufacturing
plant. Packaging size has increased too. Early in the industry, 1/2-, 1- and 5-gallon
containers were the most common. Today 40- and 50-gallon drums and even tank trucks
with capacities of 3,000 to 4,000 gallons are used.

Operations in a concentrate manufacturing plant can be divided into five basic

processes:
1. treating water

2. receiving raw materials

3. concentrate manufacturing

4. concentrate and additives filling

5. shipping finished products.

Each of these processes has safety hazards that must be evaluated and controlled. Water
is a very important ingredient in the concentrate and it must have excellent quality.
Each concentrate plant treats water until it reaches the desired quality and is free from
micro-organisms. Water treatment is monitored during all stages.

When the plant receives the compounding ingredients, inspection, sampling and
analysing of the ingredients in the quality-control department are begun. Only materials
that have passed the tests will be used in the concentrate manufacturing process. Some
of the raw materials are received in tank trucks and require special handling. Also,
packaging material is received, evaluated and analysed in the same way as the raw
materials.

During the manufacturing of concentrate, treated water and liquid and solid ingredients
are pumped into stainless-steel tanks, where they are mixed, homogenized and/or
extracted in accordance with the manufacturing instructions. The tanks have capacities
of 50 gallons, 10,000 gallons and even more. These tanks are completely clean and
sanitized at the time of mixing.

Once the concentrate is manufactured, the filling stage is started. All the products are
piped into the filling room. Filling machines are strictly cleaned and sanitized before
the filling process starts. Most of the filling machines are dedicated to specific container
sizes. The product is kept inside pipes and tanks at times during the filling process in
order to avoid contamination. Each container should be labelled with the product name
and handling hazards (if necessary). Full containers are moved by conveyors to the
packaging area. Containers are placed on pallets and wrapped in plastic or tied before
they are stored. Besides the concentrates, additives to be used in the preparation of
carbonated soft drinks are packed. Many of these additives are packed in plastic bags
and placed in boxes.

Once at the warehouse, the products are divided and prepared to be sent to the different
bottling companies. These products should be labelled following all government
regulations. If products are going to another country, the product must be labelled in
accordance with the other country’s labelling requirements.

SOFT DRINK BOTTLING AND CANNING

In most established markets around the world, soft drinks now rank first among
manufactured beverages, surpassing even milk and coffee in terms of per capita
consumption.

Including ready-to-drink, packaged products and bulk mixes for fountain dispensing,
soft drinks are available in almost every conceivable size and flavour and in virtually
every channel of retail distribution. Complementing this universal availability, much of
the soft drink category’s growth can be attributed to convenient packaging. As
consumers have become increasingly mobile, they have opted for easier-to-carry
packaged goods. With the advent of the aluminium can and, more recently, the
resealable plastic bottle, soft drink packaging has become lighter and more portable.

Stringent quality-control standards and state-of-the-art water treatment processes also

have afforded the soft drink industry a high degree of confidence regarding product
purity. Moreover, the manufacturing or bottling plants that produce soft drinks have
evolved into highly mechanized, efficient and spotlessly clean food-processing
facilities.

As early as the 1960s, most bottlers were producing beverages through machinery that
ran at 150 bottles per minute. As product demand has continued to skyrocket, soft drink
manufacturers have shifted to faster machinery. Thanks to advances in production
technology, filling lines now are able to run in excess of 1,200 containers per minute,
with minimal downtime except for product or flavour changes. This highly automated
environment has allowed soft drink manufacturers to reduce the number of employees
required to operate the lines. Still, as production efficiencies have risen dramatically,
plant safety has remained an ever-important consideration.
 Soft drink bottling or manufacturing involves five major processes, each with its own
safety issues that must be evaluated and controlled:

1. treating water

2. compounding ingredients

3. carbonating product

4. filling product

5. packaging.

HEALTH AND ENVIRONMENTAL CONCERNS

Beverages, both alcoholic and non-alcoholic, are normally produced under strict
sanitary guidelines set by governmental regulations. To meet these guidelines,
equipment within beverage plants is constantly cleaned and disinfected with harsh
cleaning agents. The copious use of cleaning agents can, in itself, pose health problems
to the workers exposed to them in their job duties. Skin and eye contact with the caustic
cleansers can cause severe dermatitis. Another concern is that inhalation of the fumes
or spray produced when using the cleansers may cause damage to the lungs, nose,
mouth or throat. Water or other liquids are commonly found in and around production,
making slips and falls a common injury and causing many other injuries simply due to
poor traction.

Glass containers, high-speed fillers and overhead conveyors result in a combination of

elements that can produce serious harm from flying glass. Cuts and eye injuries are
common due to glass breakage. Much of the beverage industry has moved to using
larger and larger quantities of aluminium cans and plastic containers; this has reduced
the incidence of glass-inflicted injuries. However, in certain countries and specific
industries, such as wine and spirits, this has not been the case.

Electrical systems in any industry possess a high degree of potential injury. When
mixed with the ever present water in beverage manufacturing, the threat of electrocution
becomes extreme. Electrical systems within beverage plants are constantly being
reworked as the industry rapidly modernizes with new high-speed equipment that
results in increasing exposure.

The manufacturing process in the beverage industry entails the movement of massive
quantities of raw materials in bags and barrels, on wooden and plastic pallets; loads of
empty bottles and cans; and finished product in a variety of containers. Beverages,
being liquid, are naturally heavy. Repetitive-motion injuries due to sorting and
inspection of glass bottles and some packaging operations occur frequently. This
continuous movement of light and heavy objects presents ergonomic challenges for the
beverage industry as well as other industries. The incidence of soft tissue sprain and
strain injuries in the United States has risen nearly 400% since 1980, for example.
Nations are in different stages of progress in determining preventive measures to reduce
these types of injuries.

Modern mechanized equipment has drastically reduced the number of personnel needed
to operate the bottling and canning lines, which in itself has reduced the exposure to
injury. However, the high-speed conveyers and automatic palletizing and de-palletizing
equipment can cause serious, although less frequent, injuries. Personnel tempted to
reach into a moving conveyor to put a bottle or can upright can get clothing caught and
be dragged into the mechanism. Palletizers and depalletizers can become jammed, and
a worker can suffer broken limbs trying to clear the machines.

Modern high-speed equipment has, in most cases, led to increased noise levels,
especially at the higher frequencies. Hearing loss caused by workplace noise is
classified as a disease, since it occurs insidiously over time and is irreversible. Incidence
rates involving hearing loss are increasing. Engineering controls to reduce the noise
levels are being tested and used, but enforcement of the wearing of standard hearing
protection is still the preferred method used by most employers. New on the horizon is
the investigation of the stress on workers due to the combination of high noise levels,
24-hour schedules and the tempo of work.

Confined spaces, such as tanks, casks, vats, wastewater pits and storage or mixing
vessels used commonly in beverage manufacturing facilities, have the potential of
causing catastrophic injuries. This issue has not received a lot of attention by beverage
industry management because most vessels are considered to be “clean” and mishaps
occur so infrequently. Although injuries in the types of vessels used by beverage plants
are rare, a serious incident can occur due to the introduction of hazardous materials
during cleaning operations or from atmospheric abnormalities, potentially resulting in
a near or actual fatality. (See the box on confined spaces.)

Most beverage manufacturing facilities have raw material and finished product storage
areas. Self-propelled material-handling equipment poses as serious a threat in a
production plant as in any warehouse. Injuries involving fork-lift trucks and similar
equipment often result in crushing injuries to pedestrian personnel or to the operator if
the vehicle overturns. Production plants often entail cramped conditions as expansion
of production capability in existing facilities takes place. These cramped conditions are
often conducive to a serious accident involving material-handling equipment.

Beverage production usually requires pure water and refrigeration systems. Chemicals
used most commonly to satisfy these requirements are chlorine and liquid anhydrous
ammonia, respectively, and both are considered extremely hazardous substances.
Chlorine is often purchased and stored in pressurized metal cylinders of various sizes.
Injuries can occur to personnel during changeover from one cylinder to another or from
a leaking or defective valve. An accidental release of anhydrous ammonia can cause
burns to the skin and respiratory system on contact. A large, uncontrolled release of
anhydrous ammonia can result in air concentrations high enough to explode violently.
Emergency systems to detect leaks and automatic ventilation and shut down equipment
are used frequently, along with evacuation and response procedures. Chlorine and
anhydrous ammonia are chemicals that have strong identifiable odours and are easily
detectable in the air. They are considered to have strong warning properties to alert
workers of their presence.

Carbon dioxide, most commonly used for pressurization and carbonation, and carbon
monoxide, emitted by internal combustion engines, are present in most beverage plants.
Beverage filler rooms are usually the most prone to having high levels of carbon
dioxide, especially during product changeover procedures. Beverage companies have
been increasing the assortment of products offered to the public, so these changeovers
occur more frequently, increasing the need for ventilation to exhaust the carbon dioxide.
Carbon monoxide can be present if fork-lifts or similar equipment are used. A
dangerous concentration can accumulate if engines are not operating within
manufacturers’ specifications.

Employment in the beverage industry is often seasonal. This is more common in areas
of the world with distinct seasons and in northern climates. A combination of
worldwide manufacturing trends such as just-in-time inventory control and the use of
contract and temporary personnel can have a great impact on safety and health. Often
workers employed for short periods of time are not afforded the same amount of safety-
related training as permanent employees. In some cases, resultant costs associated with
injuries sustained by temporary personnel are not borne by the employer but by an
agency supplying the worker to the employer. This has created an apparent “win-win”
situation for the employer and the opposite effect on the workers employed in positions
such as these. More enlightened governments, employers and trade associations are
beginning to look closely at this growing problem and are working on methods to
improve the amount and quality of safety training given to workers in this category.

Environmental concerns are not often associated with beverage production, since it is
not thought of as a “smokestack industry”. Excluding an accidental release of a
hazardous chemical such as anhydrous ammonia or chlorine, the main discharge from
beverage production is wastewater. Usually this wastewater is treated prior to entry into
the waste stream, so it is rare that a problem occurs. Occasionally a bad batch of product
has to be discarded, which, depending on the ingredients involved, may have to be
transported away for treatment or greatly diluted before release into the waste system.
A large quantity of acidic beverage finding its way into a stream or lake can cause large
fish kills and must be avoided.

The increasing use of chemical additives for enhancing flavour, extending shelf life or
as a substitute sweetener has raised public health concerns. Some chemicals used as
artificial sweeteners are prohibited in some countries because they have been found to
be carcinogenic. Most, however, present no apparent health risk to the public. The
handling of these raw chemicals and their presence in the workplace has not been
studied in enough depth to determine if there are worker exposure risks.
 COMPETITORS OF COCA COLA COMPANY
Coca Cola is one of the leading soda beverages company of the world with a very large
product portfolio made up of more than 500 sparkling and still brands. The brightest
stars in its portfolio are the 21 Billion dollar brands, each of which generates 1 billion
USD or more in revenue. Apart from soda beverages in various flavours, the brand also
sells energy drinks, bottled water, juices and low calorie soda drinks. Coca Colas is sold
in more than 200 countries and is also known for great marketing capabilities apart
from high level of popularity.

Major competitors of Coca Cola Company: –

1. PepsiCo
2. Dr Pepper Snapple
3. Red Bull
4. Nestle
5. Parle

1. PepsiCo –

The biggest and closest competitor of Coca Cola; its arch rival PepsiCo was
formed after the merger of Pepsi and Frito lay in 1965. The brand has seen growth
in organic revenue in 2017. It has 20 billion dollar brands in its product portfolio.
US it its largest market where it is engaged in intense competition with Coca Cola.
Its Net revenue in 2017 was 63.5 Billion Dollars and Gross Profit 28.8 Billion
dollars. The two brands compete across several categories including sod
beverages, health and energy drinks as well as bottled water and juices. In fact
Pepsi is the toughest competitor of Coca Cola and their rivalry has come to be
termed as Cola wars.
2. Red Bull –
Red Bull despite its limited product portfolio is a major competitor for the energy
drink products of Coca Cola. It is a famous brand that sells across 171 countries
and is now focusing on core markets of western Europe and USA for farther
growth. In 2017, the brand sold more than 6.3 Billion cans and its turnover
reached 6.282 Billion Euros. Red Bull saw its sales booming in 2017 in five major
markets including Turkey, India, Netherlands, Northern Europe and United
Kingdom. This has led to better financial figures including operating profit and
revenues for Red Bull in 2017. Red Bull is the toughest competitor for the energy
drinks by Coca Cola.

3. Dr Pepper Snapple –

Pepper Snapple has a portfolio of more than 50 refreshing brands.

These brands include carbonated soft drinks, juices, teas, mixers, waters and other
beverages. The brand is a major competitor for Coca Cola in the US market. Its
2017 revenue was 6.4 billion dollars of which 90% was earned from the US
market. Dr Pepper Snapple has made a series of strategic acquisitions over the
last three decades to grow its business and customer base.

4. Nestle –
While Nestle is not a direct competitor of Coca Cola, still it competes with the
brand across some specific product categories like bottled water. Its Nestle Pure
life and Poland Spring are two bottled water brands that are quite popular and
major competitors for Coca Cola’s Dasani.
5. Parle –
Parle is an Indian brand and competes with Coca Cola across some specific
product categories that include bottled water and juices. Parle’s Frooty, Appy and
Bailey are major competitors of Coca Cola’s minute maid and other juice products
as well as juice drinks and bottled waters in the Indian market.

MAJOR COMPETITOR
PEPSICO

COMPANY PROFILE

PepsiCo is one of the largest companies there is that is engaged in the food,
beverage, and snack industries. Their address is 700 Anderson Hill Road,
Purchase, N.Y. 10577. Their phone number is 914-253-2000 and their fax
number is 914-253-2070. Their stock symbol is PEP and they are listed on the
NYSE. The company URL is www.pepsico.com.
Business Summary: PepsiCo, Inc. is engaged in the snack food, soft drink, juice,
and fast food franchise businesses. The Company, through its subsidiaries,
markets, sells and distributes various snacks in the United States and
internationally, manufactures concentrates of Pepsi, Mountain Dew and other
brands for sale to franchised bottlers in the United States and international
markets and produces, markets, sells and distributes juices under several
Tropicana trademarks in the United States and internationally. PepsiCo’s
domestic snack food business is conducted by Frito-Lay North America, and its
international snack food business is conducted through Frito-Lay International.

The Company's soft drink business operates as the Pepsi-Cola Company and is
comprised of two business units, Pepsi-Cola North America (PCNA) and Pepsi-
Cola International (PCI). In December 2000, the Company announced an
agreement under which a subsidiary of PepsiCo will merge with The Quaker
Oats Company, and Quaker will become a wholly owned subsidiary of PepsiCo.
Quaker is a large worldwide marketer of foods and beverages. It manufactures
and markets Gatorade thirst quencher, along with hot cereals, pancake syrups,
grain-based snacks, cornmeal, hominy grits and value-added rice products.
The proposed merger is subject to certain closing conditions, including approval
by shareholders of both companies and regulatory approvals. The transaction is
expected to close in the first half of 2001. PepsiCo also operates several food
franchises including Pizza Hut, KFC, and Taco Bell.
Financial Summary: PepsiCo, Inc. manufactures markets and sells soft drinks
and concentrates (Pepsi-Cola, Mountain Dew, Slice, etc.), snack foods (Frito-
Lay) and Tropicana branded juices. For the 12 weeks ended 3/24/01, net sales
increased 8% to $4.54 billion. Net income increased 18% to $498 million.
Revenues benefited from volume gains across all divisions. Net income also
reflects an increased gross profit due to higher effective net pricing.

PepsiCo, Inc. is an American multinational food, snack, and beverage

corporation headquartered in Harrison, New York, in the hamlet of Purchase.
PepsiCo has interests in the manufacturing, marketing, and distribution of grain-
based snack foods, beverages, and other products. PepsiCo was formed in 1965 with
the merger of the Pepsi-Cola Company and Frito-Lay, Inc. PepsiCo has since
expanded from its namesake product Pepsi to a broader range of food and beverage
brands, the largest of which included an acquisition of Tropicana Products in 1998
and the Quaker Oats Company in 2001, which added the Gatorade brand to its
portfolio.As of January 26, 2012, 22 of PepsiCo's brands generated retail sales of
more than $1 billion,[3] and the company's products were distributed across more
than 200 countries, resulting in annual net revenues of $43.3 billion. Based on net
 revenue, PepsiCo is the second largest food and beverage business in the world,
behind Nestle. Within North America, PepsiCo is the largest food and beverage
business by net revenue. Ramon Laguarta has been the chief executive of PepsiCo
since 2018. The company's beverage distribution and bottling is conducted by
PepsiCo as well as by licensed bottlers in certain regions.

A Brief History of PepsiCo

Born in the Carolinas in 1898, Pepsi-Cola has a long and rich history. The drink is
the invention of Caleb Bradham (left), a pharmacist and drugstore owner in New
Bern, North Carolina.
The summer of 1898, as usual, was hot and humid in New Bern, North Carolina. So
a young pharmacist named Caleb Bradham began experimenting with combinations
of spices, juices, and syrups trying to create a refreshing new drink to serve his
customers. He succeeded beyond all expectations because he invented the beverage
known around the world as Pepsi-Cola.
Caleb Bradham knew that to keep people returning to his pharmacy, he would have
to turn it into a gathering place. He did so by concocting his own special beverage,
a soft drink. His creation, a unique mixture of kola nut extract, vanilla and rareoils,
became so popular his customers named it "Brad's Drink." Caleb decided to rename
it "Pepsi-Cola," and advertised his new soft drink. People responded, and sales of
Pepsi-Cola started to grow, convincing him that he should form a company to
market the new beverage.
In 1902, he launched the Pepsi-Cola Company in the back room of his pharmacy,
and applied to the U.S. Patent Office for a trademark. At first, he mixed the syrup
himself and sold it exclusively through soda fountains. But soon Caleb recognized
that a greater opportunity existed to bottle Pepsi so that people could drink it
anywhere.

The business began to grow, and on June 16, 1903, "Pepsi-Cola" was officially
registered with the U.S. Patent Office. That year, Caleb sold 7,968 gallons of syrup,
using the theme line "Exhilarating, Invigorating, Aids Digestion." He also began
awarding franchises to bottle Pepsi to independent investors, whose number grew from
just two in 1905, in the cities of Charlotte and Durham, North Carolina, to 15 the
 following year, and 40 by 1907.By the end of 1910, there were Pepsi-Cola franchises
in 24 states. Pepsi-Cola's first bottling line resulted from some less-than-sophisticated
engineering in the back room of Caleb's pharmacy. Growth was phenomenal, and in
1909 Caleb erected a headquarters so spectacular that the town of New Bern pictured it
on a postcard. Famous racing car driver Barney Oldfield endorsed Pepsi in newspaper
ads as "A bully drink...refreshing, invigorating, a fine bracer before a race." The
previous year, Pepsi had been one of the first companies in the United States to switch
from horse-drawn transport to motor vehicles, and Caleb's business expertise captured
widespread attention. He was even mentioned as a possible candidate for Governor. A
1913 editorial in the Greensboro Patriot praised him for his "keen and energetic business
sense." Only two plants remained open. 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. He was right. After five
owners and 15 unprofitable years, Pepsi-Cola was once again a thriving national brand.

Milestone of company
1898 Caleb Bradham, a New Bern, North Carolina, pharmacist, renames "Brad's
Drink," a carbonated soft drink he created to serve his drugstore's fountain customers.
The new name, Pepsi-Cola, is derived from two of the principal ingredients, pepsin
and kola nuts. It is first used on August 28.

1902 Bradham applies to the U.S. Patent Office for a trademark for the Pepsi-Cola name.
1903 In keeping with its origin as a pharmacist's concoction, Bradham's advertising
praises his drink as "Exhilarating, invigorating, aids digestion."
1905 A new logo appears, the first change from the original created in 1898.
1906 The logo is redesigned and a new : "The original pure food drink."
1907 The Pepsi trademark is registered in Mexico.
1909 Automobile racing pioneer Barney Oldfield becomes Pepsi's first celebrity
endorser when he appears in newspaper ads describing Pepsi-Cola as "A bully
drink...refreshing, invigorating, a fine bracer before a race." The theme "Delicious
and Healthful" appears, and will be used intermittently over the next two decades.
1920 Pepsi appeals to consumers with, "Drink Pepsi-Cola. It will satisfy you."
1932 The trademark is registered in Argentina.
1934 Pepsi begins selling a 12-ounce bottle for five cents, the same price charged
by its competitors for six ounces.
1938 The trademark is registered in the Soviet Union.
1939 A newspaper cartoon strip, "Pepsi & Pete," introduces the theme "Twice as
Much for a Nickel" to increase consumer awareness of Pepsi's value advantage.
1940 Pepsi makes advertising history with the first advertising jingle ever broadcast
nationwide. "Nickel, Nickel" will eventually become a hit record and will be
translated into 55 languages. A new, more modern logo is adopted.
1941 In support of America's war effort, Pepsi changes the color of its bottle crowns
to red, white and blue. A Pepsi canteen in Times Square, New York, operates
throughout the war, enabling more than a million families to record messages for
armed services personnel overseas.
1943 The "Twice as Much" advertising strategy expands to include the theme,
"Bigger Drink, Better Taste."
1949 "Why take less when Pepsi's best?" is added to "Twice as Much" advertising.
1950 "More Bounce to the Ounce" becomes Pepsi's new theme as changing soft
drink economics force Pepsi to raise prices to competitive levels. The logo is again
updated.
1953 Americans become more weight conscious, and a new strategy based on
Pepsi's lower caloric content is implemented with "The Light Refreshment"
campaign.
1954 "The Light Refreshment" evolves to incorporate "Refreshing without
Filling."
1958 Pepsi struggles to enhance its brand image. Sometimes referred to as "the
kitchen cola," as a consequence of its long-time positioning as a bargain brand,
Pepsi now identifies itself with young, fashionable consumers with the "Be
Sociable, Have a Pepsi" theme. A distinctive "swirl" bottle replaces Pepsi's
earlier straight-sided bottle.
1959 Soviet Premier Nikita Khrushchev and U.S. Vice-President Richard Nixon
meet in the soon-to-be-famous "kitchen debate" at an international trade fair.
The meeting, over Pepsi, is photo-captioned in the U.S. as "Khrushchev Gets
Sociable."
1961 Pepsi further refines its target audience, recognizing the increasing
importance of the younger, post-war generation. "Now its Pepsi, for those who
think Young" defines youth as a state of mind as much as a chronological age,
maintaining the brand's appeal to all market segments.
1963 In one of the most significant demographic events in commercial history,
the post-war baby boom emerges as a social and marketplace phenomenon.
Pepsi recognizes the change, and positions Pepsi as the brand belonging to the
new generation-The Pepsi Generation. "Come alive! You're in the Pepsi
Generation" makes advertising history. It is the first time a product is identified,
not so much by its attributes, as by its consumers' lifestyles and attitudes.
1964 A new product, Diet Pepsi, is introduced into Pepsi-Cola advertising.
1966 Diet Pepsi's first independent campaign, "Girl watchers," focuses on the
cosmetic benefits of the low-calorie cola. The "Girl watchers" musical theme
becomes a Top 40 hit. Advertising for another new product, Mountain Dew, a
regional brand acquired in 1964, airs for the first time, built around the
instantly recognizable tag line, "Ya-Hoo, Mountain Dew!"
1967 When research indicates that consumers place a premium on Pepsi's
superior taste when chilled, "Taste that beats the others cold. Pepsi pours it on"
emphasizes Pepsi's product superiority. The campaign, while product-oriented,
adheres closely to the energetic, youthful, lifestyle imagery established in the
initial Pepsi Generation campaign.
1969 "You've got a lot to live. Pepsi's got a lot to give" marks a shift in Pepsi
Generation advertising strategy. Youth and lifestyle are still the campaign's
driving forces, but with "Live/Give," a new awareness and a reflection of
contemporary events and mood become integral parts of the advertising's
texture.
1973 Pepsi Generation advertising continues to evolve. "Join the Pepsi
PeopleFeeling' Free" captures the mood of a nation involved in massive social
and political change. It pictures us the way we are-one people, but many
personalities.
1975 The Pepsi Challenge, a landmark marketing strategy, convinces millions
of consumers that Pepsi's taste is superior.
1976 "Have a Pepsi Day" is the Pepsi Generation's upbeat reflection of an
improving national mood. "Puppies," a 30-second snapshot of an encounter
between a very small boy and some even smaller dogs, becomes an instant
commercial classic.
1979 With the end of the '70s comes the end of a national malaise. Patriotism
has been restored by an exuberant celebration of the U.S. bicentennial, and
Americans are looking to the future with renewed optimism. "Catch that Pepsi
Spirit!" catches the mood and the Pepsi Generation carries it forward into the
'80s.
1982 With all the evidence showing that Pepsi's taste is superior, the only
question remaining is how to add that message to Pepsi Generation advertising.
The answer? "Pepsi's got your Taste for Life!" a triumphant celebration of great
times and great taste. 1991 "You got the Right one Baby" is modified to "You
got the Right one Baby, Uh-Huh!" The "Uh-Huh Girls" join Ray Charles as
back-up singers and a campaign soon to become the most popular advertising in
America is on its way. Supermodel Cindy Crawford stars in an award-winning
commercial made to introduce Pepsi's updated logo and package graphics.
1993 "Be Young, Have fun, Drink Pepsi" advertising starring basketball
superstar Shaquille O'Neal is rated as best in U.S.
1994 New advertising introducing Diet Pepsi's freshness dating initiative
features Pepsi CEO Craig Weatherup explaining the relationship between
freshness and superior taste to consumers.
1995 In a new campaign, the company declares "Nothing else is a Pepsi" and
takes top honors in the year's national advertising championship.

LIST OF TAGLINE OF PEPSICO.

1939–1950: "Twice as Much for a Nickel"
1950–1957: "Any Weather is Pepsi Weather"
1957–1958: "Say Pepsi, Please"
1961–1964: "Now it’s Pepsi for Those Who Think Young"
1964–1967: "Come Alive, You're in the Pepsi Generation"
1969–1975: "You've got a Lot to Live, and Pepsi's got a Lot to Give"
1975–1977: "Have a Pepsi Day"
1977–1980: "Join the Pepsi People (Feeling Free)"
1980–1981: "Catch That Pepsi Spirit"
1981–1983: "Pepsi's got your taste for life"
1983–1984: "Pepsi Now! Take the Challenge!"
 1984–1988: "Diet Pepsi. The Choice of a New Generation"
1988–1989: "Diet Pepsi. The Taste That's Generations Ahead"
1989–1990: "Diet Pepsi. The Right One"
1986–1987: "We've got the Taste"
1987–1990: "Pepsi's Cool"
1990–1991: "You got the right one Baby UH HUH"
1990–1994: "Yehi hai right choice Baby UH HUH"
1997–1998: "Generation Next"
1998–1999: "It’s the cola"
1999–2000: "For Those Who Think Young"/"The Joy of Pepsi-Cola"
1999–2006: "Yeh Dil Maange More!"
2006–2007: "Why You Doggin' Me"/"Taste the one that's forever young"
2000–2008: "Pepsi ye pyaas heh bari"
2008–2009: "Something for Everyone"
2009–2010: "Yeh hai youngistaan meri jaan"
2009–2010: "My Pepsi My Way"
2010–present: "every Pepsi Refreshes the World"
2011–present: "Change the game"
2011–present "Dunya Hai Dil Walon Ki"
2018-present “Har Gunooth Men Swag

BACKGROUND INFORMATION
Type Public
Industry Beverages
Founded 28 Aug 1898 (New Bern, Us)
Founder Caleb Bradham
Headquarters Harrison, New York, US.
Area Served Worldwide
Revenue US$ 64.66 billion (2018)
Operating Income US$ 10.11 billion (2018)
Net Income US$ 12.51 billion (2018)
Total Assets US$ 77.64 billion (2018)
Total Equity US$ 14.51 billion (2018)
 Number Of Employees 263,000 (2019)
Key People
Indra K. Nooyi (Chairman &CEO)
Ramon Laguarta (Incoming CEO)
Jim Andrew (Executive Vice President)
Albert P.Carey (CEO PepsiCo North America)
Jody Davids (Senior Vice President &CIO)
Anne Fink (President, Global foodservice)
Hugh F.Johnon (Vice Chairman & CFO)
Ram Krishnan (President, Greater China Region)
Laxman Narashimhan (CEO,Latin America &Europe)
Latest Acquisitions
In 2019 PepsiCo sued four small farmers in India US$142,000 each for growing a type of
potato it says it owns. A number of Farmers' associations are requesting that the government
get involved in the case stating that Pepsi is attempting to intimidate people. After pressure
from the public as well as state and national governments, PepsiCo withdrew the lawsuit on
May 2, 2019.

On October 3, 2019, PepsiCo announced that they will leave Indonesia after terminating their
partnership with local distributor PT Anugerah Indofood Barokah Makmur (AIBM). Both
companies stopped production of PepsiCo products on October 10. This has resulted
in KFC and Pizza Hut chains in the country to switch to Coca-Cola products. On December 2,
2019, PepsiCo acquired the snacks brand, BFY Brands, who are going to be folded into the
Frito-Lay division.

MISSION AND VISION

PepsiCo’s Mission Statement
CREATE MORE SMILES WITH EVERY SIP AND EVERY BITE
The main points of PepsiCo’s mission statement are as follows:
Consumers around the world, Delicious, healthy and fun products, Affordability.
Convenience PepsiCo’s mission statement focuses on consumers and product
characteristics. For example, the mission statement shows that the company targets all
consumers worldwide. This implies that PepsiCo aims to provide products that appeal
to all consumers despite differences in backgrounds, cultures, and other variables. The
mission statement also defines the basic characteristics of PepsiCo’s products. The
point on affordability implies PepsiCo’s approach to pricing. Moreover, based on the
mission statement’s convenience point, PepsiCo makes its products easily accessible,
implying the firm’s market strategy.
 FOR OUR CONSUMERS: By creating joyful moments through our delicious and
nourishing products and unique brand experiences.

FOR OUR CUSTOMERS: By being the best possible partner, driving game-changing
innovation, and delivering a level of growth unmatched in our industry.

FOR OUR ASSOCIATES AND OUR COMMUNITIES: By creating meaningful

opportunities to work, gain new skills and build successful careers, and a diverse and
inclusive workplace.

FOR OUR PLANET: By conserving nature’s precious resources and fostering a more
sustainable planet for our children and grandchildren.

FOR OUR SHAREHOLDERS: By delivering sustainable top-tier TSR and embracing

best-in-class corporate governance.

Vision Statement

BE THE GLOBAL LEADER IN CONVENIENT FOODS AND BEVERAGES

BY WINNING WITH PURPOSE

PepsiCo’s vision statement is “to deliver top-tier financial performance over the long
term by integrating sustainability into our business strategy, leaving a positive imprint
on society and the environment.” PepsiCo adds that this vision statement is built on the
idea of “Performance with Purpose.” Based on these considerations, PepsiCo’s vision
statement has the following main points:

1. Top financial performance

2. Sustainability
3. Corporate social responsibility

PepsiCo emphasizes high financial performance as one of the aims included in its vision
statement. This factor is a basic business expectation. In addition, the vision statement
indicates that PepsiCo integrates sustainability in business activities. Sustainability
enhances corporate and brand image. Also, PepsiCo’s vision statement includes
corporate social responsibility. This factor is a major influence on the company’s
policies and strategies on organizational development, especially with regard to its
impact on stakeholders. All of these points of the vision statement motivate PepsiCo to
achieve high performance.
 SWOT ANALYSIS

Strengths-

1. Believe on the customer satisfaction.

2. Pepsi has a broader product line and outstanding reputation.
3. Record revenues and increasing market share
4. Number one maker of snacks, such as corn chips and potato chips
5. Great brands, strong distribution, innovative capabilities
6. popular with younger people, wide array of brands
7. has a big share , popular, well know by costumers, higher celebrities for promotion
8. Company has good market share in Varanasi city.
9. Company has a Brand Equity among Consumers.

Weaknesses-
1-No provision for regular replacement of damage of bottles.
2-Distribution is not proper so we can say not justified.
3-not as popular with older crowd, not associated with key restaurants (i.e. coke /
McDonalds', while Pepsi / Pizza Hut)
Opportunities-

1. water related products, non-soft drinks, energy drinks

2. Increase the coverage areas.
3. Increase market share by improving service
4. Increase the target consumer every year.
5.Company can go for more Monopoly counters
Threats-
1. Distributors are reducing in Varanasi city.
2. Constant competition with coke. Olympic branding from coke.
3. Other drink companies are increasing competition.
4. Decline in market reputation due to ineffectiveness & declaring service.
5. Aggressive marketing strategies of Coke.
 MARKET ANALYSIS
List Of Product Offered By PepsiCo
 Diet Pepsi
 Caffeine Free Diet Pepsi
 Diet Pepsi Lime
 Pepsi ONE
 Mountain Dew
 Diet Mountain Dew
 Mirinda
 Mug Cream Soda
 Slice
 AMP energy drink
 Aquafina
 Aquafina Alive
 Aquafina FlavorSplash
 Aquafina Sparkling
 Lay's potato chips
 Lays Kettle Cooked potato chips
 Wavy Lay's potato chips
 Baked Lay's potato crisps
 Tropicana Pure Premium juices
 Tropicana Twister juice drinks
 Tropicana Smoothies
 Quaker Oatmeal
 Lipton Brisk (Partnership)
 Lipton Pure Leaf (Partnership)
 7 Up
 Lehar Soda
 Nimbooz
 Lehar Namkeen
 Kurkure
 Cheetos
 Distribution Channel

“Marketing channels are sets of interdependent organizations involved in the process

of making a product or service available for use or consumption”
Pic-1

Distribution Objective
Minimize total distribution costs for a given service output
Determine the target segments and the best channels for each segment
Objectives may vary with product characteristics
 E.g. perishables, bulky products, non-standard items, products
requiring installation & maintenance.
Market Share and Revenue
Table 1

Revenue
Table 2

Revenue Net income Total Assets

Year Employees
in mil. USD$ in mil. USD$ in mil. USD$

2005 32,562 4,060 31,727

2006 35,137 5,631 29,930

2007 39,474 5,646 34,628

2008 43,251 5,134 35,994

2009 43,232 5,940 39,848

2010 57,838 6,314 68,153

2011 66,504 6,436 72,882

2012 65,492 6,171 74,638

2013 66,415 6,740 77,478 274,000

2014 66,683 6,503 70,509 271,000

2015 63,056 5,452 69,667 263,000

2016 62,799 6,329 73,490 264,000

2017 63,525 4,857 79,804 263,000

 HUMAN RESOURSE ANALYSIS

Organisational Struture

Pic-2

Activities of HR Department:

 Dealing with employee.

 Dealing with contractors.

 Canteen management.

 Security activities.

 Welfare.
  Recruitment.

 Wages & Salary.

 Training & development.

 Statutory compliance.

 Administration.

 Transport management.

 Maintain employee relation.

 Housekeeping activities.

 Performance appraisal system.

Human Resource Planning:

There are three major methods of HRP

1) Trend Analysis

2) Ratio Analysis

3) Through Software Packages

PepsiCo does the HR planning according to the session wise, if demand is

at the boom than company recruits some additional employee on the
temporary basis. Generally, company recruits the additional employee at
the period of summer vacation.The decision takes by the ER/HR manager
as per the situation.

Recruitment:

There are two types of Recruitment process are there:

1) Internal Recruitment

2) External Recruitment

Internal Recruitment: Internal recruitment is done

 through Rehiring, Succession Planning, and Job Positioning.

External Recruitment: It is done through Internet, Advertising,

Employment Agency, Campus Recruitment, Referral etc.

Selection:

Company has two types of selection procedure

1- Executive or manager

2- For associate & workers

For executive level: -

Agency send the person as per requirement and plant manager takes
the interview of that person, if the person is selected by the plant
manager than company’s committee (department heads) takes the
interview of that person, once he/she selected then they are send to
Ahmedabad & Mumbai for final interview. If the selected person is
agreeing with the company’s terms & conditions, then he/she can join
the company.

For associate level: -

Companies directly recruit them by the help of private agency. ER/HR

manager takes the interview of that person and recruit them.

Performance Appraisal System:

1) Performance appraisal is divided into two parts. Part A focuses on

the actual performance of the candidate, while part B focuses on
the person.
2) It is important to complete both sections of the forms for objective
evaluation of candidate.
3) In part B there is two sections, one focuses on the operative skills
and the second section focuses on the maintenance part.
 Part A Part B

Work performance/output Care of machine

Concern safety Maintenance of the machine

Responsibility & discipline Know operating very well

Team work Keep clean machine & near

House keeping Environment

And according this performance appraisal he/she promoted by given

rank from his observation and give comment.

Remarks: (of performance appraisal programme)

 Outstanding

 OT (On Target)

 AT (Above Target)

Training & Development:

Company gives the training to new employee as well as old employee. In

training company know the capabilities of the person and now what kind of
training he needed in future.

Types Of Training Days

Personality development 02
First aid 01
GMP (good mfg. --
productivity training)
Printing training 0.5
Basic fire training 01
 FM (foreign matter training) 0.5
General safety 01

Promotion & Transfer Policy

PepsiCo Company gives the promotion on the basis of performance of the

employee. Promotion is given in the company’s same plant.

If the company needs the person in other plant and it will fill through
transfer, by the order of plant manager.