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INTRODUCTION

Soft beverages is possibly the most hard battled merchandise classes in India in
every esteem - newspapers, events, distribution, pricing, connection, radio, people
and endorsements. Every year it consistently appears as one of
the peak 10 classes on television. Soft drink industry scenario the world over is
almost the same with two major players i.e. Pepsi co. and Coca-Cola having the
major chunk in the pie. (Business & Economy, 2006) The major components of the
industry consist of the concentrates manufacturers bottlers and at the sales and
distribution network of the companies the rule and the responsibilities of each of them
are different. (Business & Economy, 2006) The major activity taken up by the
concentrates manufacturer relates to the production of the basis product which is
battled by the battling plants mostly. Though in India fountain sales from a very
insignificant part of the sales revenue. During the initial stages both soft drink Majors
used a network of independent bottlers to bottle and market their products. Although
Coca-Cola and Pepsi Cola are premier marketing companies the fundamental
competitive advantage that allowed that to compete so effectively lies in their ability to
operate through a very cumbersome advertising system. (4ps Business and
Marketing, 2007). This fight between the two ‘cola’ kings has aroused my interest in
this topic and with the help of my research it will be very easier for me , to answer the
research question that i have chosen which are:-

What are the competitive advertising strategies adopted by Pepsi & Coke in India to
outscore each other?

Which soft drink company (among Pepsi & Coke) has been more successful in
grabbing greater market share and consumers’ satisfaction?

To successfully complete this project my major research objective would be to


compare and critically analyze the competitive Advertising strategies adopted by
Pepsi and Coke and secondly to obtain customers response to know about their
satisfaction level about the products of the two soft drinks kings (Pepsi & Coke).
This project will help analyzing the soft drink industry in India and similarly will also
help in analyzing the advertising strategies of Pepsi and Coke in India.

My study would be taking into consideration the studies which already have been
performed in the past also as I am using secondary data as well to fill in the
respective project. My project includes the primary data which will help me to make it
different from the past studies conducted. In this I will be interviewing the company
officials as well as the consumers. The feedback from both the parties would be
helpful in making my project a more enlightening. The response collected from them
would help me to find out the flaws in the marketing strategies, brand image making
in the market etc. and the response from the customers would help me to analyze
which of the brand is more popular between the customers and what would they
prefer from both of them. so i think if ill answer all these questions according to the
present criterion it will be helpful. as all the previous statistics are old enough. All the
statistics which i will collect would be an appropriate for the end of my study.

My study and the conclusions which I will draw through my research would be very
helpful to the academia and business managers as they will be able to think about
their marketing strategies which are to be used in the future so as to push their brand
at the number one position in the market and make it a consumer friendly brand. My
study would also provide them an easy route to accomplish their tasks in a profitable
manner.

This is how my study would be different from the previous ones conducted.

Soft drinks are playing the vital role in the market and the companies are
also getting the good profits on these products. The soft drinks industry has
originated in 1772. Now these drinks spread all over the world and the millions of
bottles is consumed every day. Now this business is a global one and the companies
are facing high competition in this business and they are changing their strategies
according to the situations.
Pearl Beverages Pvt. Ltd. Takes a great care to maintain quality control of
products in their factory. The bottles are visually examined for impurities
continuously, as the bottles move out. Samples are checked every ten minutes of
production time by the chemist for its quality and hygienic condition. The chemical
analysis is also flavours, gas contain and sugar percentage. The appearance, smell
and taste of the production are suspended and the correcting measures are taken
also as to sent right the bottling process.

The main objective of the study is to find out the strength and weakness of
the Pepsi in visakhapatnam zone when compared to the Coca-cola, that is mainly in
the three places in Srikakulam district i.e. Srikakulam, Narasannapeta, and
Amadalavalasa .Consulting almost all the outlets in these three areas, which are
selling the soft drinks with a structured questionnaire, has done the study. The data
has been collected and analyzed and interpreted by the help of the graphical
representation technique.

The analysis revels the various strengths and weaknesses of Pepsi in these
areas along with the position of competitors. The most of the consumers preferred
soft drinks because of better taste and to quench out their thrust. But now days, due
to the changing food habits consumers have started adding the soft drinks in their
food habits. The total sales of the soft drinks the Pepsi’s share is more but when
compared with the Cock the number of outlets are less than Cock.

Finally it can be concluded that the industry needs lot of channel


management activities to do along with various promotional strategies for the
customers. I wish the company got its objectives achieved
CHAPTER-1
Design of the Study
NEED OF THE STUDY

In modern days, market plays a vital role in rapidly changing industrial


scenario. The marketing decline is under going reappraisal in the light of vast goals,
technological, economic and social changes being faced by the today companies.
The order to known the changes in the field of marketing it are necessary to conduct
market survey.

Study is conducted considering the following accepts:

Firstly, visage is a representative of soft drink market which is highly promoting


with a lot of potential which is at to be tapped.

Secondly the behavior of the retailer is very much influenced by the additional
benefits he is getting for selling the products having.

Thirdly to understand the advertisement strategy of the soft drinks in the


present scenario and the competition level in the market.

Considered the key role of the advertisement in present day market as an


attempt was made to study the impact of company’s schemes of offering coolers to
the customer.
SCOPE OF THE STUDY

There is lot of scope for the further study in the project. Further study can be
done in the following ways.

 We can make a study on Pepsi and Cock companies’ efficiency in their


promotion activities.
 There is chance to know whether the Pepsi and Cock are doing the right
thing regarding the sales promotion, product quality, discounts and advertising.
 A study on impact of visit coolers sales of Pepsi also be taken up.
OBJECTIVE OF THE STUDY

In view of intensifying competition in soft drink market, it is imperative that a


brand keeps a constant, which on them market and response properly and promptly
to the dynamics of the market. It is in view of this fact has the present study has been
taken up for “PEPSI”.

 To know and compare the advertisement of Pepsi and Cock.


 To know the promotional activities of sales promotion, advertising and
public relations.
 To know the strategy of Pepsi and its competitors regarding the
Marketing Mix.
 To know the problems of retailers and to offer the suggestion for
improving in sales.
RESEARCH METHODOLOGY

Research methodology is considered as the nerve of the project. Without a proper


well-organized research plan, it is impossible to complete the project and reach to
any conclusion. The project was based on the survey plan. The main objective of
survey was to collect appropriate data, which work as a base for drawing conclusion
and getting result.

Therefore, research methodology is the way to systematically solve the research


problem. Research methodology not only talks of the methods but also logic behind
the methods used in the context of a research study and it explains why a particular
method has been used in the preference of the other methods

Research design:

Research design is important primarily because of the increased complexity in the


market as well as marketing approaches available to the researchers. In fact, it is the
key to the evolution of successful marketing strategies and programmers. It is an
important tool to study buyer’s behavior, consumption pattern, brand loyalty, and
focus market changes. A research design specifies the methods and procedures for
conducting a particular study. According to Kerlinger, “Research Design is a plan,
conceptual structure, and strategy of investigation conceived as to obtain answers to
research questions and to control variance.

Types of research is:

• Descriptive Research

The type of research adopted for study is descriptive. Descriptive studies are
undertaken in many circumstances when the researches is interested to know the
characteristic of certain group such as age, sex, education level, occupation or
income. A descriptive study may be necessary in cases when a researcher is
interested in knowing the proportion of people in a given population who have in
particular manner, making projections of a certain thing, or determining the
relationship between two or more variables. The objective of such study is to answer
the “who, what, when, where and how” of the subject under investigation. There is a
general feeling that descriptive studies are factual and very simple. This is not
necessarily true. Descriptive study can be complex, demanding a high degree of
scientific skill on part of the researcher.

Descriptive studies are well structured. An exploratory study needs to be flexible in its
approach, but a descriptive study in contrast tends to be rigid and its approach
cannot be changed every now and then. It is therefore necessary, the researcher give
sufficient thought to framing research.

Questions and deciding the types of data to be collected and the procedure to be
used in this purpose. Descriptive studies can be divided into two broad categories:
Cross Sectional and Longitudinal Sectional. A cross sectional study is concerned with
a sample of elements from a given population. Thus, it may deal with household,
dealers, retail stores, or other entities. Data on a number of characteristics from
sample elements are collected and analyzed. Cross sectional studies are of two
types: Field study and Survey. Although the distinction between them is not clear- cut
, there are some practical differences, which need different techniques and skills.
Field studies are ex-post-factor scientific inquiries that aim at finding the relations and
interrelations among variables in a real setting. Such studies are done in live
situations like communities, schools, factories, and organizations.

Another type of cross sectional study is survey result, which has been taken by me. A
major strength of survey research is its wide scope. Detail information can be
obtained from a sample of large population .Besides; it is economical as more
information can be collected per unit of cost. In addition, it is obvious that a sample
survey needs less time than a census inquiry. Descriptive research includes survey
and fact finding enquiries of different kinds of the major purpose. Descriptive research
is description of the state of affairs, as it exists at present. The main characteristic of
this method is that the researcher has no control over the variables; he can only
report what has happened or what is happening. The methods of research utilized in
descriptive research are survey methods of all kinds including comparative and co
relational methods. The reason for using such needs to be flexile in its approach, but
a descriptive study in contrast tends to be rigid and its approach cannot be changed
ever now and then.

Management Dilemma

Customer satisfaction will leads to greater organizational profitability and popularity.

Data collection methods:

After the research problem, we have to identify and select which type of data is to
research. At this stage; we have to organize a field survey to collect the data. One of
the important tools for conducting market research is the availability of necessary and
useful data.

Primary data: For primary data collection, we have to plan the following four
important aspects.

 Sampling
 Research Instrument
 Secondary Data - The Company’s profile, journals and various literature
studies are important sources of secondary data.
 Data analysis and interpretation

1. Questionnaires
2. Pie chart and Bar chart

Questionnaires:

This is the most popular tool for the data collection. A questionnaire contains question
that the researcher wishes to ask his respondents which is always guided by the
objective of the survey.
Pie chart:

This is very useful diagram to represent data, which are divided into a number of
categories. This diagram consists of a circle of divided into a number of sectors,
which are proportional to the values they represent. The total value is represented by
the full create. The diagram bar chart can make comparison among the various
components or between a part and a whole of data.

Bar chart:

This is another way of representing data graphically. As the name implies, it consist
of a number of whispered bar, which originate from a common base line and are
equal widths. The lengths of the bards are proportional to the value they represent.

Preparation of report:

The report was based on the analysis and presented with the findings and
suggestions. The sample of the questionnaires is attached with the report itself.

Sample size: The sample size is 240


LIMITATIONS OF THE STUDY

The present study is subject to the following limitations:

 The sample size is not universal , some part of other cities remained
uncovered
 Unavailability of some information due of lack of awareness of customer
 Time and expenses were major constraints
 The study of the soft drink industry which is known to be seasonally fluctuating
on e percent study does not take into account seasonal fluctuations. The results may
not suit for all the seasons
 Personal basis may be existing as the dealer of varied nature elicits the
information
Chapter-2

Company overview
INTRODUCTION

In this chapter, an over of all the major accepts related to the study is discussed. The
total industry profiles the soft drinks industry globally and in our country. The profile of
the company with respect to its operation number of franchises, market share of the
company and many other factors would be discussed here.

INDUSTRY PROFILE

Non alcoholic soft drink beverage market can be divided into fruit drink and soft drink.
Soft drinks can be further divided into carbonated and non carbonated drinks. Colas,
lemon and oranges are carbonated drinks while mango drinks come under non-
carbonated drinks. Cola, lemon and oranges are carbonated drinks while mango
dinks comes under non-carbonated category. The soft drinks market till early 1990’s
was in hands of domestic players like Coke, Thumps Up, Limca etc. but with the
opening up of economy and coming of MNC players Pepsi and Cock the market has
totally under their control. Worldwide, Cock is the leader in carbonated drinks market.
In India it is Pepsi, which scores over cock but this difference is fast decreasing.
Pepsi entered Indian market in 1991. Cock re-entered (after they were thrown out in
1977, by then central government) in 1993.

Pepsi has been targeting the youth and the sales have been doing well by sticking to
this youth segment. Cock on the other hand struggled initially in establishing itself in
the market. In a span of 7 years of its operations in the country it changed its CEO
four times they seem to have started understanding the pulse of Indian consumers.

Soft drinks are available in glass bottles, aluminum cans and PET bottles for home
consumption. Fountains also dispense thin in disposable containers.
SEGMENTATION:

The soft drink market can be segmented on the basis of place of consumption and on
the basis of type of products.

The segmentation on the basis of place of consumption divides the market into three
parts:

1. on-permise-80% of the consumption of soft drinks is on premise i.e.


restaurants, railway stations, cinemas etc,
2. At-home the rest 20% of the market compromise of the soft drink purchased
for consumption at home.

The market can also be segmented on the basis of types of products into Cola
products and non-cola products.

1. cola products account nearly 62% of the total soft drinks market. The brands
that fall in this category are Pepsi, cola, Thumps Up, Diet Pepsi etc.
2. non-cola segment, which constitutes 36%, cam be divide into 4 categories
based on the type of flavour available, namely
 Orange
 Cloudy lime
 Clear lime
 Mango
I. Orange flavour based soft drinks constitutes around 17% of the market. The
segment is largely dominated by national brands like Fanta of Coca-cola
Co. and Mirinda Orange of Pepsi Co. rest of the market is in hands of
smaller brands like Crush (earlier Cadbury Schweppes and now of Coca
Cola), Gold Spot etc.
II. Cloudy Lime flavour constitutes 14% of the market and is largely dominated
by Limca of Coca Cola and Miranda Lemon of Pepsi Co.
III. Clear Lime this segment of the market witnessed good growth initially with
all; the players launching their brands in the segment. But now the growth in
the segment has slowed down. The brands available in this segment are 7
Up , Mountain dew of Pepsi, Sprite of Coca-Cola and Canada Dry( earlier of
Cadbury Schweppes and now of Coca Cola). The segment constitutes 3%
of the total soft drinks market.
IV. Mango flavour segment constitutes 2% of the total soft drinks market and it
directly competes with mango based fruit drinks like Fruity. The leading
brands in this segment are: Maaza of Coca Cola and Slice of Pepsi.

There is very thin line of difference between the clear and cloudy lime. The most
obvious feature is that clear lime has to be bottled in green bottles as sunlight
harms the drink and changes the taste.

There are some small local brands at city or regional levels. Most of these are either
merging with two big players (Coca Cola and Pepsi) or they command a very small –
less than 3% of the total market in their respective areas.

Soft Drink Production Area:

The market preference is highly regional based, while Cola drinks have main market
in metro cities and northern states of U.P, Punjab, Haryana, etc... Orange flavoured
drinks are popular in southern states. Sodas too are sold largely in southern states
besides the Bars. Western markets have preference towards mango-flavoured drinks.

Growth Promotional Activities in Soft Drink Industry:

The government has adopted liberalized for the soft drinks trade to give the industry a
boost and promote the Indian brand internationally. Although the import and
manufacture of international brands like Pepsi and Cock is enhanced in India the
local brands being stabilized by advertisements, good quality and low cost.
Buying Behavior in Soft Drink Industry:

 Soft drinks come under the category of products on impulse. This attitude of
impulse buying is slowly changing to occasion-led buying and also to some
extent consumption through home refrigeration particularly in urban areas.
 The market is slowly moving from non alcoholic carbonated drinks to fruit based
drinks and also to plain bottled water due to lower price and ready availability.
 Consumers purchase soft drinks primarily quench thirst therefore people
traveling and not having access to hygienic water reach out for soft drink. This
accounts for a large part of the sales.
 Brand awareness plays a crucial rule in purchase decisions.
 Availability in the chilled from also plays a crucial role in purchase decisions.
This has made both the companies to push its sales and to increase its retail
distribution by offering Visi cooler to retailers.
 Why there is no aversion to consumption of soft drinks buys any age group, the
main consumer of this market are people in the age group of 30 and below.
 Product differentiation is very low, as all the products taste the same. But brand
loyalty is high in the case of kids and people in the age group of 20-30 years.
 According to NCAER survey, lower, lower-middle, upper-middle class people do
91% of the total consumption of soft drinks in the country.

Growth promotional activities in soft drink industry:

The government has adopted liberalization for the soft drink trade to give industry a
boost and promote the Indian Brand internationally. Although the import and
manufacture of international brands like Pepsi and Coke is enhanced in India .The
local brands are being stabilized by advertisements, good quality and low cost.

Buying Behavior of soft drink industry:

• Soft drinks come under the category of products on impulse. This


attitude of impulse buying is slowly changing to occasion-led buying and also to
some extent consumption through home refrigeration particularly in urban areas.
• The market is slowly moving from alcoholic carbonated drinks to fruit
based drinks and also plain bottled water due to lower price and ready
availability.
• Consumers purchase soft drinks particularly to quench thirst and
therefore on travel not having access to hygienic water reaches out for soft
drinks.
• Brand awareness plays a vital role in purchase decisions.
• Availability in the chilled form also plays a crucial role in purchase
decisions. This has made both the companies to push its sales and to increase
its retail distribution by offering Visi coolers to retailers
• Why is there no aversion to consumption of soft drinks to any age
group, the main consumers of this market are people in the age group of 30 and
below.
• Product differentiation is very low, as all the products taste the same.
But brand loyalty is high in the case of kids and people in the age group of 20-30
years
• According to NCAER survey, lower, lower-middle ands upper-middle
class people do 91% of the total consumption of soft drinks in the country.

Major Players in Soft drinks Industries

The two global majors Pepsi and Coca Cola dominate the soft drink market in
India. Coca Coal, which would up its operations during the introduction of the FERA
regime, reentered India 16 years later in 1993. Coca Cola acquired a major chunk of
soft drink market by buying out local brands Thumps up, Limca, Maaza and Gold spot
from Pearl beverages, Coca Cola has also acquired Cadbury Schweppes soft drink
brands Crush, Canada Dry and Sport Cola in early 1999 and now recently in
Oct.2008 .It acquires distribution rights of these brands from IFB Agro Ltd . Pepsi
stated a couple of years before Coca Cola manufactures came up with their own
market share figures and claimed to have increased their share.
ORGANIZATION PROFILE

PEPSI

PepsiCo, Incorporated (NYSE: PEP) is a Fortune 500, American multinational


corporation headquartered in Purchase, NY with interests in manufacturing and
marketing a wide variety of carbonated and non-carbonated beverages, as well as
salty, sweet and grain-based snacks, and other foods. Besides the Pepsi-Cola
brands, the company owns the brands Quaker Oats, Gatorade, Frito-Lay, SoBe,
Naked, Tropicana, Copella, Mountain Dew, Mirinda and 7-Up (outside the USA).

Indra Krishnamurthy Nooyi has been the chief executive of PepsiCo since 2006.
During her time, healthier snacks have been marketed and the company is striving for
a net-zero impact on the environment. This focus on healthier foods and lifestyles is
part of Nooyi's "Performance With Purpose" philosophy.

Today, beverage distribution and bottling is undertaken primarily by associated


companies such as The Pepsi Bottling Group (NYSE: PBG) and Pepsi
Americas(NYSE: PAS). PepsiCo is a SIC 2080 (beverage) company.

History

Headquartered in Purchase, New York, with Research and Development


Headquarters in Valhalla, The Pepsi Cola Company began in 1898 by a Pharmacist
and Industrialist Caleb Bradham, but it only became known as PepsiCo when it
merged with Frito Lay in 1965. Until 1997, it also owned KFC, Pizza Hut, and Taco
Bell, but these fast-food restaurants were spun off into Tricon Global Restaurants,
now Yum! Brands, Inc. PepsiCo purchased Tropicana in 1998, and Quaker Oats in
2001. In December 2005, PepsiCo surpassed Coca-Cola Company in market value
for the first time in 112 years since both companies began to compete.
Corporate governance

Current members of the board of directors of PepsiCo are Indra Nooyi C.E.O., Robert
E. Allen, Dina Dublon, Victor Dzau, Ray Lee Hunt, Alberto Ibargüen, Arthur Martinez,
Steven Reinemund, Sharon Rockefeller, James Schiro, Franklin Thomas, Cynthia
Trudell, and River King.

On October 1, 2006, former Chief Financial Officer and President Indra Nooyi
replaced Steve Reinemund as chief executive officer. Nooyi remains the
corporation's president, and became Chairman of the Board in May 2007.

Mike White is the President of Pepsi-Co International Division.

Former top executives at PepsiCo

• Steven Reinemund
• Roger Enrico
• D. Wayne Calloway
• John Sculley
• Donald M. Kendall
• Christopher A. Sinclair
• Alfred Steele

PepsiCo brands

PepsiCo owns 5 different billion-dollar brands. These are Pepsi, Tropicana, Frito-Lay,
Quaker, and Gatorade. The company owns many other brands as well.

• Pepsi, Caffeine-Free Pepsi, Diet Pepsi/Pepsi Light, Caffeine-Free Diet Pepsi,


Caffeine-Free Pepsi Light, Wild Cherry Pepsi, Pepsi Lime, Pepsi Max, Pepsi
Twist and Pepsi ONE.
• Other U.S. carbonated soft drinks, including Mountain Dew, Slice, Mug Root
Beer, Sierra Mist, Tropicana Twister Soda and Frawg,
• 7 Up (Globally, outside the USA)
• Other U.S. beverages, including Aquafina (Flavor Splash, Alive, and
Twist/Burst), Tava, Dole, Gatorade, Izze, Mountain Dew AMP, Propel Fitness
Water, SoBe, Quaker Milk Chillers, Ben & Jerry's MilkShakes, and Tropicana
• Beverages marketed outside the U.S.: Alvalle, Concordia, Copella, Evervess,
Fiesta, Frui'Vita, Fruko, H2OH!, Junkanoo, Kas, Loóza, Manzana Corona,
Manzanita Sol, Mirinda, Paso de los Toros (drink), Radical Fruit, San Carlos,
Schwip Schwap, Shani, Teem, Triple Kola, and Yedigun
• Frito-Lay brands: Baken-ets, Barcel, Bocabits, Cheese Tris, Cheetos,
Chester's, Chizitos, Churrumais, Cracker Jack, Crujitos, Doritos, Fandangos,
Fritos, Funyuns, Gamesa, Go Snacks, James' Grandma's Cookies, Hamka's,
Lay's, Miss Vickie's, Munchies, Munchos, Nik Naks, Ollie's Meat Snacks,
Quavers, Rold Gold, Ruffles, Rustler's Meat Sticks, Sabritas, Sabritones,
Sandora, Santitas, Smartfood, The Smith's Snackfood Company, Sonric's,
Stacy's Pita Chips, Sun Chips, Tor-tees, Kurkure, Tostitos, Walkers, and
Wotsits
• Quaker Oats brands: Aunt Jemima, Cap'n Crunch, Chewy Granola bars,
Coqueiro, Crisp'ums, Cruesli, FrescAvena, King Vitaman, Life, Oatso
Simple,Quake, Quisp, Rice-A-Roni, and Spudz

In 2007, Nooyi spent $1.3 billion on healthier-alternative brands like Naked Juice, a
California maker of soy drinks and organic juice.

Pepsico has also recently acquired a 50% stake in U.S.-based Sabra Dipping
Company.

Partnerships

PepsiCo also has formed partnerships with several brands it does not own, in order
to distribute these or market them with its own brands.

• Frappuccino
• Starbucks DoubleShot
• Starbucks Iced Coffee
• Mandarin (license)
• D&G (license)
• Lipton Brisk
• Lipton Original Iced Tea
• Lipton Iced Tea
• Ben & Jerry's Milkshakes
• Dole juices & juice drinks (license)
• Sunny Delight (produced by PepsiCo for Procter & Gamble)

Discontinued lines

• All Sport, a line of sports drinks. All-Sport was lightly carbonated; in contrast,
rivals Gatorade and Coke-owned POWERade were non-carbonated. The 2001
purchase of Quaker Oats (in effect acquiring Gatorade) made All Sport
expendable, and the brand was sold to another company.
• Aspen Soda, an apple-flavored soft drink (late 1970s-early 80's)
• Crystal Pepsi, a clear version of Pepsi-Cola.
• FruitWorks: Flavors were Strawberry Melon, Peach Papaya, Tangerine Citrus,
Apple Raspberry, and Pink Lemonade. Two other flavors, Passion Orange and
Guava Berry, were available in Hawaii only.
• Josta: launched 1995, "with Guarana," the first energy drink launched by a
major soft drink company in the US.
• Matika: Run in August 2001, it was a tea/juice alternative beverage,
sweetened with cane sugar & containing Ginseng. Dragonfruit Potion, Magic
Mombin, Mythical Mango, Rising Starfruit, Skyhigh Berry
• Mazagran: launched 1995
• Mr. Green (SoBe)
• Patio: line of flavored drinks (1960-late '70s)
• Pepsi Edge, a mid-calorie version of Pepsi-Cola.
• Pepsi Blue, a berry-flavored, blue version of Pepsi-Cola.
• Pepsi Kona: launched 1997, a coffee-flavored version of Pepsi-Cola.
• Smooth Moos: launched 1995, a flavored milk-based drink.
• Storm: launched March 15, 1998, replaced by Sierra Mist.
Former brands

PepsiCo owned a number of restaurant chains until it exited that business in 1997,
selling some, and spinning off others into a new company Tricon Global Restaurants,
now known as Yum! Brands, Inc.. PepsiCo also previously owned several other
brands that it later sold.

• California Pizza Kitchen (bought 1992, sold back to original founders in 1997)
• Chevys Fresh Mex (bought August 1993, sold May 1997 to J. W. Childs Equity
Partners)
• D'Angelo Sandwich Shops (sold August 1997 to Papa Gino's)
• East Side Mario's (United States franchises – bought December 1993, sold
early 1997 )
• Hot 'n Now (bought in 1990, sold in 1997)
• KFC (bought October 1986 from RJR Nabisco, spun off October 1997 to form
TriCon, later Yum! Brands)
• North American Van Lines
• Pizza Hut (bought in 1977, spun off October 1997 to form TriCon, later Yum!
Brands)
• Stolichnaya
• Taco Bell (bought in 1978, spun off October 1997 to form TriCon, later Yum!
Brands)
• Wilson Sporting Goods

Diversity

PepsiCo received a 100 percent rating on the Corporate Equality Index released by
the LGBT-advocate group Human Rights Campaign starting in 2004, the third year of
the report.

PEPSI COMPANY MISSION STATEMENT:

Pepsi Company’s over all missions is to increase the value of their share
holder’s investment. they believe that their commercial success depends up on
offering quality and value to their consumers and providing products that are safe,
whole some and economically efficient and environmentally sound. Providing a fair
return to their investors, while adhering to the highest standards of integrity.
MAJOR PRODUCTS OF THE NEW COMPANIES ARE:

• Pepsi-Cola company Pepsi-Cola(formulate in 1898)


• Diet Pepsi(1964)
• Mountain Dew (introduced by T.P corporation 1984)
• Frito-Lay Inc brand chips Lays brand potato chips
• Cheetos brand chew flavoured snacks
• Ruffles brand potato chips & Rold Gold brand pretzels

Pepsi Company Inc. is among the most successful consumer products company in
the world with: 1998 revenues of over $22 billion &1, 51,000 employees. Pepsi
company’s brand names are among the best known & most respected in the world
.Some of the Pepsi Company’s brand names are 100 years old. FRITO-LAY
Company is the world’s largest manufacturer and distributor of snack chip and
Tropicana products Inc. is the world’s largest marketer and producer of branded
juices.

Pepsi Company’s success is the result of

• Superior Products.
• High Stands of Performances
• Distinctive Competitive strategies.
• High integrity of its work force

PEPSI-COLA COMPANY:

Calets Bradham, New Beru and Mc.Druggist who first formulated Pepsi coal
founded Pepsi Company’s beverage business at the turn of the century.

Brand Pepsi and other Pepsi-cola products including Diet Pepsi one, Mountain
Dew, Slice and mug brands account for nearly 1/3 rd of the total soft drink in United
States.
Outside U.S Pepsi Cola Company’s soft operations include the business of
7up international. Pepsi-cola beverages are available in about 170 countries.

Key Pepsi-cola international market includes Argentina, Brazil, china, India,


Mexico, Philippines, Saudi Arabia, Spain, Thailand, and the United Kingdom.

Pepsi-cola provides advertising, marketing sales and promotion support to the Pepsi-
cola bottles. New advertising and existing promotions keep Pepsi-cola young. The
company manufacture and sales of the soft drinks are concentrated to the Pepsi-cola
bottles.

• In 1996, Pepsi entered Japan and Eastern Europe.


• In 1967, PepsiCo. Stock splits two-for one.

In 1986, North America van lines (NAVL), a premier transportation company Pepsi
co, and renamed a strong contribution to the Pepsi unit it has divided in 1984.

In 1969 in bold modern Pepsi cola packing which was using red, white and blue were
introduced. FRITO-LAY introduced fungus brand onion flavoured snacks. In 1970
Pepsi introduces the industry’s first two litter bottles. Pepsi is the first company to
respond to consumer preference with light weight, recyclable, plastic bottles.

In 1971 Andral E. Pearson was appointed as president of PepsiCo, a position he held


until his retirement in 1984.in 1972 don Kendall announced agreement making Pepsi
cola the first foreign product sold in U.S.S.R. Pepsi co is given exclusive rights to
import Stolichnaya Russian vodka in the U.S.

In 1973 and 1974 Pepsi-cola became the first American consumer product to
produce made and sold in former Soviet Union.

In 1975 Pepsi Lite, with destructive lemon taste, is introduced as an alternative to


traditional diet colas. In 1976 PepsiCo adopts code of worldwide business conduct.
Pepsi-cola became the single largest selling soft drink brands sold in U.S super
markets. In 1977 PepsiCo shares spilt up three for one. In 1987 and 1979 the
opening of PepsiCo research and technological center in Vallah N.Y PepsiCo
reached 85 billion marks in sales. Pepsi was formed to focus on the overseas
development of restaurants. In 1981 PepsiCo fitness center was completed, making
PepsiCo, one of the most advanced companies in the area of employee’s health and
fitness.

In 1982 Pepsi free and diet Pepsi free, the first major brands caffeine free colas were
introduced.

Inauguration of the first Pepsi cola operations in china:

In 1983 The Bottler Hall of Fame was established to recognize the


achievement and dedication of international bottlers. In 1984 diet Pepsi is
reformulated with 100% neutral sweet, slice and diet slice. The first major soft drinks
sirucsare added in Mexico. The cola were takes “one giant spilt for mankind” when a
Pepsi “space can” is successfully tested a brand the span shuttle. 1986 Pepsi
company board of directors visit the peoples public of china to make the opening the
Pepsi second plant in china.

In 1989, Pepsi Company introduce share power stock option program for all
employees becoming the first large corporation tool award stock options through
virtually all full time employees. In the 1900, Pepsi company was recognized as one
of the most admired corporation by the fortune magazine’s top 10 for the two
successive years. Pepsi signs the largest commercial trade agreement in history with
the Soviet Union expecting sales in the USSR to double by the end of the century.
Pepsi re-entered the Indian market in collaboration with Punjab Agro industries
Corporation (PAIC). In 1991 Pepsi company named one of the fortune magazine’s
top most admired corporations, for the third year in also. Pepsi co. purchased an
equity position in the carts of Coloreds Inc. the leading manufacturer and marketer of
mobile merchandising equipment. It was sold in 1955. 1993 Pepsi Cola began the
distribution of Lipton’s line of ready to drinks teas nationwide. in 1996 Pepsi started
its website WWW.Pepsi.com
SOCIAL RESPONSIBILITY OF PEPSICOLA COMPANY:

As a consumer products company, Pepsi Company does not have the major
environmental problems of heavy industry. Their biggest environment challenge is
packaging generated by their products.

Packaging is important to public and a critical component of the distribution


system is to deliver products to consumers and commercial establishment. To meet
both consumer demand and safe guard the environment, they recycle, re-use and
reduce packaging wherever possible. Each business is also committed to responsible
use of resources required in manufacturing their products.

ABOUT PEPSI INDIA COMPANY

Franchise (pearl Bottling Pvt.Ltd.,)

Often new flavours are to be added to the product line of cool drinks to
prevent a competitor. To establish a relation with retailers it is desirable to sell more
than one flavor of cool drinks. To decrease the security seasonal products are added
to the resources available so as to lessen its risks. Pepsi has given the franchise of
Visakhapatnam region to Pearl Beverages which belongs to Pearl Group with Head
quarters at Delhi and Mr. C.K. Jaipuria as the chairman and the Managing Director of
the group. Pepsi Foods Ltd., declared Krishna Mohan Beverages and Constructions
as franchise, in 1992.Last year it was changed to Pearl Beverages was taken by the
Pearl Group. Campa-cola Soft Drinks has originally owned the premises since 1980
at Madhurawada. After the insolvency of campa-cola, KMBC purchased the premises
in1990 in the auction by APSFC. Initially, it used to produce Mc.Dowell’s soda and
Bagpiper soda. It produced these drinks under franchise agreements but company
could not exist in the market due to stiff competition from pearl products.
Description and Launch of products

Brand name Flavour Date


Pepsi Cola April-1992
Mirinda Orange April-1992
7 Up Clear Lemon April-1992
Mirinda Lime Cloudy Lemon April-1992
Soda Soda April-1992
Pepsi Pepsi 7 Up Mirinda(o) Mirinda(L) Slice Evervess
Dite soda
Coca- Cock Dite Sprite Fanta Limca Maaza Kinleys
cola

Pepsi market share:

Pepsi : 47%

Coca-cola : 53%
Pepsi foods (Pvt.) Ltd.

Pepsi cola was in India from 1956 to 1961. it left this country, as its
products were not found acceptable to the Indian market. Pepsi foods Ltd. Joint
venture between Pepsi Co. international of US(which is holding 40% of the
equity)and Tata concerns Voltas and the Punjab Ago industries Corporation (each of
which have as round 25% of the equity),has 25%of its output reserved for beverages
with a 50% export commitment fo9r fruit and vegetable products. According to Pepsi
officials the project guarantees that for every American dollar the company takes out
of India, it will bring five back.

They started concentrated factory in Punjab. This company named as


Pepsi Foods Ltd. Pepsi Co. international’s direct investments in India so far amounts
to Rs.165 corer. Two thirds of this however has gone into food processing. Pepsi
foods are exporting fruits and vegetables to UK etc.

The Pepsi’s foods processing unit directly supervised 1,200 hectors under
tomato cultivation covering 183 villages and 319 farmers. The company’s technical
inputs enabled the farmer to achieve a yield of 35 to 50 tones a hector against the
average of was after discontinuing teems. KMBC Pvt. Ltd. Has was the bottle for five
districts Vizag, Vizianagaram, Srikakulam, and East Godavari & West Godavari. It
receives the stock from Cuttack.

PRODUCT PROFILE

The Pepsi Co. is known for the development and introduction of world-
class brands & products. Their portfolio is organized into three core business, which
consists of snacks, Beverages and Restaurants. Pepsi products are constantly
changing themselves to develop new products. They encourage consumer to explore
their wide range of brands.

Main objectives:
The objectives of the company set out in memorandum of association and
franchise agreements are as follows:

 To manufacturing soft drinks by concentrating supplied by Pepsi Foods.


 To market and advertise within specified areas for Pepsi products.
 To sell soft drinks at fixed prices.

ORGANIZATION PROFILE

Coca-Cola

Coca-Cola is a carbonated soft drink sold in stores, restaurants and vending


machines internationally. The Coca-Cola Company claims that the beverage is sold
in more than 200 countries. It is produced by The Coca-Cola Company in Atlanta,
Georgia, and is often referred to simply as Coke (a now genericized trademark) or (in
European and American countries) as cola, pop, or in some parts of the U.S., soda.
Originally intended as a patent medicine when it was invented in the late 19th century
by John Pemberton, Coca-Cola was bought out by businessman Asa Griggs Candler,
whose marketing tactics led Coke to its dominance of the world soft-drink market
throughout the 20th century.

The company produces concentrate, which is then sold to licensed Coca-Cola


bottlers throughout the world. The bottlers, who hold territorially exclusive contracts
with the company, produce finished product in cans and bottles from the concentrate
in combination with filtered water and sweeteners. The bottlers then sell, distribute
and merchandise Coca-Cola to retail stores and vending machines. Such bottlers
include Coca-Cola Enterprises, which is the largest single Coca-Cola bottler in North
America and western Europe. The Coca-Cola Company also sells concentrate for
soda fountains to major restaurants and food service distributors.

The Coca-Cola Company has, on occasion, introduced other cola drinks under the
Coke brand name. The most common of these is Diet Coke, with others including
Caffeine-Free Coca-Cola, Diet Coke Caffeine-Free, Coca-Cola Cherry, Coca-Cola
Zero, Coca-Cola Vanilla, and special editions with lemon, lime or coffee.

In response to consumer insistence on a more natural product, the company is in the


process of phasing out E211, or sodium benzoate, the controversial additive used in
Diet Coke and linked to DNA damage to yeast cells and hyperactivity in children. The
company has stated that it plans to remove E211 from its other products, including
Sprite and Oasis, as soon as a satisfactory alternative is found.

According to Coca-Cola authorities, the best Coca-Cola is made in Skopje,


Macedonia, where the company has granted the Skopje Brewery its "Best Bottling
Company" award.

History

The first Coca-Cola recipe was invented in a drugstore in Columbus, Georgia by John
Pemberton, originally as a cocawine called Pemberton's French Wine Coca in 1885.
He may have been inspired by the formidable success of Vin Mariani, a European
cocawine.

In 1886, when Atlanta and Fulton County passed prohibition legislation, Pemberton
responded by developing Coca-Cola, essentially a non-alcoholic version of French
Wine Cola. The first sales were at Jacob's Pharmacy in Atlanta, Georgia, on May 8,
1886. It was initially sold as a patent medicine for five cents a glass at soda fountains,
which were popular in the United States at the time due to the belief that carbonated
water was good for the health. Pemberton claimed Coca-Cola cured many diseases,
including morphine addiction, dyspepsia, neurasthenia, headache, and impotence.
Pemberton ran the first advertisement for the beverage on May 29 of the same year
in the Atlanta Journal.

By 1888, three versions of Coca-Cola—sold by three separate businesses—were on


the market. Asa Griggs Candler acquired a stake in Pemberton's company in 1887
and incorporated it as the Coca Cola Company in 1888. The same year, while
suffering from an ongoing addiction to morphine, Pemberton sold the rights a second
time to four more businessmen: J.C. Mayfield, A.O. Murphey, C.O. Mullahy and E.H.
Bloodworth. Meanwhile, Pemberton's alcoholic son Charley Pemberton began selling
his own version of the product.

John Pemberton declared that the name "Coca-Cola" belonged to Charley, but the
other two manufacturers could continue to use the formula. So, in the summer of
1888, Candler sold his beverage under the names Yum Yum and Koke. After both
failed to catch on, Candler set out to establish a legal claim to Coca-Cola in late
1888, in order to force his two competitors out of the business. Candler purchased
exclusive rights to the formula from John Pemberton, Margaret Dozier and Woolfolk
Walker. However, in 1914, Dozier came forward to claim her signature on the bill of
sale had been forged, and subsequent analysis has indicated John Pemberton's
signature was most likely a forgery as well.

In 1892 Candler incorporated a second company, The Coca-Cola Company (the


current corporation), and in 1910 Candler had the earliest records of the company
burned, further obscuring its legal origins. By the time of its 50th anniversary, the
drink had reached the status of a national icon in the USA. In 1935, it was certified
kosher by Rabbi Tobias Geffen, after the company made minor changes in the
sourcing of some ingredients.

Coca-Cola was sold in bottles for the first time on March 12, 1894. The first outdoor
wall advertisement was painted in the same year as well in Cartersville, Georgia.
Cans of Coke first appeared in 1955. The first bottling of Coca-Cola occurred in
Vicksburg, Mississippi, at the Biedenharn Candy Company in 1891. Its proprietor was
Joseph A. Biedenharn. The original bottles were Biedenharn bottles, very different
from the much later hobble-skirt design that is now so familiar. Asa Candler was
tentative about bottling the drink, but two entrepreneurs from Chattanooga,
Tennessee, Benjamin F. Thomas and Joseph B. Whitehead, proposed the idea and
were so persuasive that Candler signed a contract giving them control of the
procedure for only one dollar. Candler never collected his dollar, but in 1899
Chattanooga became the site of the first Coca-Cola bottling company. The loosely
termed contract proved to be problematic for the company for decades to come.
Legal matters were not helped by the decision of the bottlers to subcontract to other
companies, effectively becoming parent bottlers.

Coke concentrate, or Coke syrup, was and is sold separately at pharmacies in small
quantities, as an over-the-counter remedy for nausea or mildly upset stomach.

New Coke

On April 23, 1985, Coca-Cola, amid much publicity, attempted to change the formula
of the drink with "New Coke". Follow-up taste tests revealed that most consumers
preferred the taste of New Coke to both Coke and Pepsi, but Coca-Cola
management was unprepared for the public's nostalgia for the old drink, leading to a
backlash. The company gave in to protests and returned to the old formula under the
name Coca-Cola Classic on July 10, 1985.

21st century

On February 7, 2005, the Coca-Cola Company announced that in the second quarter
of 2005 they planned to launch a Diet Coke product sweetened with the artificial
sweetener sucralose ("Splenda"), the same sweetener currently used in Pepsi One.
On March 21, 2005, it announced another diet product, Coca-Cola Zero, sweetened
partly with a blend of aspartame and acesulfame potassium. In 2007, Coca-Cola
began to sell a new "healthy soda": Diet Coke with vitamins B6, B12, magnesium,
niacin, and zinc, marketed as "Diet Coke Plus."

On July 5, 2005, it was revealed that Coca-Cola would resume operations in Iraq for
the first time since the Arab League boycotted the company in 1968.

In April 2007, in Canada, the name "Coca-Cola Classic" was changed back to "Coca-
Cola." The word "Classic" was truncated because "New Coke" was no longer in
production, eliminating the need to differentiate between the two. The formula
remained unchanged.
In January 2009, Coca-Cola stopped printing the word "Classic" on the labels of 16-
ounce bottles sold in parts of the southeastern United States. The change is part of a
larger strategy to rejuvenate the product's image.

Use of stimulants in formula

When launched Coca-Cola's two key ingredients were cocaine (benzoylmethyl


ecgonine) and caffeine. The cocaine was derived from the coca leaf and the caffeine
from kola nut, leading to the name Coca-Cola (the "K" in Kola was replaced with a
"C" for marketing purposes).[26][27]

Coca — Cocaine

Pemberton called for five ounces of coca leaf per gallon of syrup, a significant dose;
in 1891, Candler claimed his formula (altered extensively from Pemberton's original)
contained only a tenth of this amount. Coca-Cola did once contain an estimated nine
milligrams of cocaine per glass, but in 1903 it was removed. Coca-Cola still contains
coca flavoring.

After 1904, instead of using fresh leaves, Coca-Cola started using "spent" leaves—
the leftovers of the cocaine-extraction process with cocaine trace levels left over at a
molecular level. To this day, Coca-Cola uses as an ingredient a cocaine-free coca
leaf extract prepared at a Stepan Company plant in Maywood, New Jersey.

In the United States, Stepan Company is the only manufacturing plant authorized by
the Federal Government to import and process the coca plant, which it obtains mainly
from Peru and, to a lesser extent, Bolivia. Besides producing the coca flavoring agent
for Coca-Cola, Stepan Company extracts cocaine from the coca leaves, which it sells
to Mallinckrodt, a St. Louis, Missouri pharmaceutical manufacturer that is the only
company in the United States licensed to purify cocaine for medicinal use. Stepan
Company buys about 100 metric tons of dried Peruvian coca leaves each year,
according to Marco Castillo, spokesman for Peru's state-owned National Coca Co.

Kola nuts — Caffeine


Kola nuts act as a flavoring and the source of caffeine in Coca-Cola. In Britain, for
example, the ingredient label states "Flavourings (Including Caffeine)." Kola nuts
contain about 2 percent to 3.5 percent caffeine, are of bitter flavor and are commonly
used in cola soft drinks. In 1911, the U.S. government initiated United States v. Forty
Barrels and Twenty Kegs of Coca-Cola, hoping to force Coca-Cola to remove
caffeine from its formula. The case was decided in favor of Coca-Cola. Subsequently,
in 1912 the U.S. Pure Food and Drug Act was amended, adding caffeine to the list of
"habit-forming" and "deleterious" substances which must be listed on a product's
label.

Coca-Cola contains 34 mg of caffeine per 12 fluid ounces, while Diet Coke Caffeine-
Free contains 0 mg. Caffeine is an ergogenic aid used to increase the capacity for
mental or physical labor. The ergogenic qualities of caffeine are contested, although
there is strong evidence that it may significantly enhance endurance. For this reason,
caffeine is listed as a restricted substance by the International Olympic Committee
(IOC).

Production

Ingredients

i. Carbonated water; ii. Sugar (sucrose or fructose depending on country of origin) iii.
Caffeine iv. Phosphoric acid v. Caramel (E150d) vi. Natural flavourings

A can of Coca-Cola (330 millilitres (12 imp fl oz; 11 US fl oz)) contains 35 grams
(1.2 oz), or 7-8 teaspoons, of sugar.

Formula of Natural Flavourings

The exact formula of Coca-Cola's natural flavourings (but not its other ingredients
which are listed on the side of the bottle or can) is a famous trade secret. The original
copy of the formula is held in SunTrust Bank's main vault in Atlanta. Its predecessor,
the Trust Company, was the underwriter for the Coca-Cola Company's initial public
offering in 1919. A popular myth states that only two executives have access to the
formula, with each executive having only half the formula. The truth is that while
Coca-Cola does have a rule restricting access to only two executives, each knows
the entire formula and others, in addition to the prescribed duo, have known the
formulation process.

Franchised production model

The actual production and distribution of Coca-Cola follows a franchising model. The
Coca-Cola Company only produces a syrup concentrate, which it sells to bottlers
throughout the world, who hold Coca-Cola franchises for one or more geographical
areas. The bottlers produce the final drink by mixing the syrup with filtered water and
sweeteners, and then carbonate it before putting it in cans and bottles, which the
bottlers then sell and distribute to retail stores, vending machines, restaurants and
food service distributors.

The Coca-Cola Company owns minority shares in some of its largest franchises, like
Coca-Cola Enterprises, Coca-Cola Amatil, Coca-Cola Hellenic Bottling Company
(CCHBC) and Coca-Cola FEMSA, but fully independent bottlers produce almost half
of the volume sold in the world. Independent bottlers are allowed to sweeten the drink
according to local tastes.

Logo design

U.S. containers as of 2008. Sizes vary from 8 US fl oz (240 mL) to 2 L (68 US fl oz),
shown in cans and glass and plastic bottles.

The famous Coca-Cola logo was created by John Pemberton's bookkeeper, Frank
Mason Robinson, in 1885. Robinson came up with the name and chose the logo's
distinctive cursive script. The typeface used, known as Spencerian script, was
developed in the mid 19th century and was the dominant form of formal handwriting
in the United States during that period.

Robinson also played a significant role in early Coca-Cola advertising. His


promotional suggestions to Pemberton included giving away thousands of free drink
coupons and plastering the city of Atlanta with publicity banners and streetcar signs.
The Coca-Cola "contour bottle" design

The equally famous Coca-Cola bottle, called the "contour bottle" within the company,
but known to some as the "hobble skirt" bottle, was created in 1915 by bottle
designer Earl R. Dean. In 1915, the Coca-Cola Company launched a competition
among its bottle suppliers to create a new bottle for the beverage that would
distinguish it from other beverage bottles, "a bottle which a person could recognize
even if they felt it in the dark, and so shaped that, even if broken, a person could tell
at a glance what it was."

Chapman J. Root, president of the Root Glass Company, turned the project over to
members of his supervisory staff, including company auditor T. Clyde Edwards, plant
superintendent Alexander Samuelsson, and Earl R. Dean, bottle designer and
supervisor of the bottle molding room. Root and his subordinates decided to base the
bottle's design on one of the soda's two ingredients, the coca leaf or the kola nut, but
were unaware of what either ingredient looked like. Dean and Edwards went to the
Emeline Fairbanks Memorial Library and were unable to find any information about
coca or kola. Instead, Dean was inspired by a picture of the gourd-shaped cocoa pod
in the Encyclopedia Britannica. Dean made a rough sketch of the pod and returned
back to the plant to show Mr. Root. He explained to Root how he could transform the
shape of the pod into a bottle. Chapman Root gave Dean his approval.

Faced with the upcoming scheduled maintenance of the mold-making machinery,


over the next 24 hours Dean sketched out a concept drawing which was approved by
Root the next morning. Dean then proceeded to create a bottle mold and produced a
small number of bottles before the glass-molding machinery was turned off.

Chapman Root approved the prototype bottle and a design patent was issued on the
bottle in November, 1915. The prototype never made it to production since its middle
diameter was larger than its base, making it unstable on conveyor belts. Dean
resolved this issue by decreasing the bottle's middle diameter. During the 1916
bottler's convention, Dean's contour bottle was chosen over other entries and was on
the market the same year. By 1920, the contour bottle became the standard for the
Coca-Cola Company. Today, the contour Coca-Cola bottle is one of the most
recognized packages on the planet..."even in the dark!".

As a reward for his efforts, Dean was offered a choice between a $500 bonus or a
lifetime job at the Root Glass Company. He chose the lifetime job and kept it until the
Owens-Illinois Glass Company bought out the Root Glass Company in the mid-
1930s. Dean went on to work in other Midwestern glass factories.

Although endorsed by some, this version of events is not considered authoritative by


many who consider it implausible. One alternative depiction has Raymond Loewy as
the inventor of the unique design, but, while Loewy did serve as a designer of Coke
cans and bottles in later years, he was in the French Army the year the bottle was
invented and did not emigrate to the United States until 1919. Others have attributed
inspiration for the design not to the cocoa pod, but to a Victorian hooped dress.

In 1944, Associate Justice Roger J. Traynor of the Supreme Court of California took
advantage of a case involving a waitress injured by an exploding Coca-Cola bottle to
articulate the doctrine of strict liability for defective products. Traynor's concurring
opinion in Escola v. Coca-Cola Bottling Co. is widely recognized as a landmark case
in U.S. law today.

In 1997, Coca-Cola also introduced a "contour can," similar in shape to its famous
bottle, on a few test markets, including Terre Haute, Indiana. The new can has never
been widely released.

A new slim and tall can began to appear in Australia as of December 20, 2006, which
costs an average of AU$2. The cans have a distinct resemblance to energy drinks
that are popular with teenagers. It is unknown if the design is of limited edition or may
soon replace the current 355 mL cans that have been used in the past (the new slim
cans are 300 mL, making the volume-to-cost ratio even smaller).

In January 2007, Coca-Cola Canada changed "Coca-Cola Classic" labeling,


removing the "Classic" designation, leaving only "Coca-Cola." Coca-Cola stated this
is merely a name change and the product remains the same. The cans still bear the
"Classic" logo in the United States.

Coca-Cola is a registered trademark in most countries. The U.S. trademark was


registered in the United States Patent Office on January 31, 1893. In the UK, Coca-
Cola was registered with the UK Patent Office on July 11, 1922, under registration
number 427817.

In 2007, Coca-Cola introduced an aluminum can designed to look like the original
glass Coca-Cola bottles.

In 2007, the company's logo on cans and bottles changed. The cans and bottles
retained the red color and familiar typeface, but the design was simplified, leaving
only the logo and a plain white swirl (the "dynamic ribbon").

In 2008, in some parts of the world, the plastic bottles for all Coke varieties (including
the larger 1.25- and 2-liter bottles) was changed to include a new plastic screw cap
and a contoured bottle shape designed to evoke the old glass bottles.

Local competitors

Pepsi is usually second to Coke in sales, but outsells Coca-Cola in some markets.
Around the world, some local brands compete with Coke. In South and Central
America Kola Real, known as Big Cola in Mexico, is a fast-growing competitor to
Coca-Cola. On the French island of Corsica, Corsica Cola, made by brewers of the
local Pietra beer, is a growing competitor to Coca-Cola. In the French region of
Bretagne, Breizh Cola is available. In Peru, Inca Kola outsells Coca-Cola, which lead
The Coca-Cola Company to purchase the brand in 1999. In Sweden, Julmust outsells
Coca-Cola during the Christmas season. In Scotland, the locally-produced Irn-Bru
was more popular than Coca-Cola until 2005, when Coca-Cola and Diet Coke began
to outpace its sales. In India, Coca-Cola ranked third behind the leader, Pepsi-Cola,
and local drink Thums Up. The Coca-Cola Company purchased Thums Up in 1993.
As of 2004, Coca-Cola held a 60.9% market-share in India. Tropicola, a domestic
drink, is served in Cuba instead of Coca-Cola, due to a United States embargo.
French brand Mecca Cola and British brand Qibla Cola, popular in the Middle East,
are competitors to Coca-Cola. In Turkey, Cola Turka is a major competitor to Coca-
Cola. In Iran and many countries of Middle East, Zam Zam Cola and Parsi Cola are
major competitors to Coca-Cola. In some parts of China Future cola is a competitor.
In Slovenia, the locally-produced Cockta is a major competitor to Coca-Cola, as is the
inexpensive Mercator Cola, which is sold only in the country's biggest supermarket
chain, Mercator. In Israel, RC Cola is an inexpensive competitor. Classiko Cola,
made by Tiko Group, the largest manufacturing company in Madagascar , is a
serious competitor to Coca-Cola in many regions. Laranjada is the top-selling soft
drink on the Portuguese island of Madeira. Coca-Cola has stated that Pepsi was not
its main rival in the UK, but rather Robinsons drinks.

Advertising

Coca-Cola's advertising has significantly affected American culture, and it is


frequently credited with inventing the modern image of Santa Claus as an old man in
a red-and-white suit. Although the company did start using the red-and-white Santa
image in the 1930s, with its winter advertising campaigns illustrated by Haddon
Sundblom, the motif was already common. Coca-Cola was not even the first soft
drink company to use the modern image of Santa Claus in its advertising: White Rock
Beverages used Santa in advertisements for its ginger ale in 1923, after first using
him to sell mineral water in 1915.

Before Santa Claus, Coca-Cola relied on images of smartly-dressed young women to


sell its beverages. Coca-Cola's first such advertisement appeared in 1895, featuring
the young Bostonian actress Hilda Clark as its spokeswoman.

1941 saw the first use of the nickname "Coke" as an official trademark for the
product, with a series of advertisements informing consumers that "Coke means
Coca-Cola".

In 1971, a song from a Coca-Cola commercial called "I'd Like to Teach the World to
Sing," produced by Billy Davis, became a hit single.
Coke's advertising is pervasive, as one of Woodruff's stated goals was to ensure that
everyone on Earth drank Coca-Cola as their preferred beverage. This is especially
true in southern areas of the United States, such as Atlanta, where Coke was born.

Some of the memorable Coca-Cola television commercials between 1960 through


1986 were written and produced by former Atlanta radio veteran Don Naylor (WGST
1936–1950, WAGA 1951–1959) during his career as a producer for the McCann
Erickson advertising agency. Many of these early television commercials for Coca-
Cola featured movie stars, sports heroes and popular singers.

During the 1980s, Pepsi-Cola ran a series of television advertisements showing


people participating in taste tests demonstrating that, according to the commercials,
"fifty percent of the participants who said they preferred Coke actually chose the
Pepsi." Statisticians were quick to point out the problematic nature of a 50/50 result:
most likely, all the taste tests really showed was that in blind tests, most people
simply cannot tell the difference between Pepsi and Coke. Coca-Cola ran ads to
combat Pepsi's ads in an incident sometimes referred to as the cola wars; one of
Coke's ads compared the so-called Pepsi challenge to two chimpanzees deciding
which tennis ball was furrier. Thereafter, Coca-Cola regained its leadership in the
market.

Selena was a spokesperson for Coca-Cola from 1989 till the time of her death. She
filmed three commercials for the company. In 1994, to commemorate her five years
with the company, Coca-Cola issued special Selena coke bottles.

The Coca-Cola Company purchased Columbia Pictures in 1982, and began inserting
Coke-product images in many of its films. After a few early successes during Coca-
Cola's ownership, Columbia began to under-perform, and the studio was sold to Sony
in 1989.

Coca-Cola has gone through a number of different advertising slogans in its long
history, including "The pause that refreshes," "I'd like to buy the world a Coke," and
"Coke is it" (see Coca-Cola slogans).
In 2006, Coca-Cola introduced My Coke Rewards, a customer loyalty campaign
where consumers earn points by entering codes from specially-marked packages of
Coca-Cola products into a website. These points can be redeemed for various prizes
or sweepstakes entries.

In mass media

Coca-Cola has been prominently featured in countless films and television programs.
It was a major plot element in films such as One, Two, Three, The Coca-Cola Kid,
and The Gods Must Be Crazy. It provides a setting for comical corporate
shenanigans in the novel Syrup by Maxx Barry. And in music, in the Beatles' song,
"Come Together", the lyrics said, "Coca-Cola, he say...".

Health effects

Since studies indicate "soda and sweetened drinks are the main source of calories in
[the] American diet," most nutritionists advise that Coca-Cola and other soft drinks
can be harmful if consumed excessively, particularly to young children whose soft
drink consumption competes with, rather than complements, a balanced diet. Studies
have shown that regular soft drink users have a lower intake of calcium, magnesium,
ascorbic acid, riboflavin and vitamin A. The drink has also aroused criticism for its use
of caffeine, which can cause physical dependence. A link has been shown between
long-term regular cola intake, of which Coca-Cola is the most consumed brand
worldwide, and osteoporosis in older women (but not men). This was thought to be
due to the presence of phosphoric acid, and the risk was found to be same for
caffeinated and noncaffeinated colas, as well as the same for diet and sugared colas.

The use of Coca-Cola has also been associated with an increase of tumors as found
by the Ramazzini Foundation in 2006.

A common criticism of Coke based on its allegedly toxic acidity levels has been found
to be baseless by researchers; lawsuits based on these notions have been dismissed
by several American courts for this reason. Although numerous court cases have
been filed against The Coca-Cola Company since the 1920s, alleging that the acidity
of the drink is dangerous, no evidence corroborating this claim has been found.
Under normal conditions, scientific evidence indicates Coca-Cola's acidity causes no
immediate harm.

Since 1985 in the U.S., Coke has been made with high fructose corn syrup instead of
the more expensive cane-sugar glucose or fructose. Some nutritionists also caution
against consumption of high fructose corn syrup because it may aggravate obesity
and type-2 diabetes more than cane sugar. Also, a 2009 study found that almost half
of tested samples of commercial high-fructose corn syrup (HFCS) contained mercury,
a toxic substance.

In India there is a major controversy whether there are pesticides and other harmful
chemicals in bottled products, including Coca-Cola. 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. CSE found that the Indian produced Pepsi's soft drink products had
36 times the level of pesticide residues permitted under European Union regulations;
Coca-Cola's soft drink was found to have 30 times the permitted amount. CSE said it
had tested the same products sold in the U.S. and found no such residues. After the
pesticide allegations were made in 2003, Coca-Cola sales in India declined by 15
percent. In 2004 an Indian parliamentary committee backed up CSE's findings and a
government-appointed committee was tasked with developing the world's first
pesticide standards for soft drinks. The Coca-Cola Company has responded that its
plants filter water to remove potential contaminants and that its products are tested
for pesticides and must meet minimum health standards before they are distributed.
In the Indian state of Kerala sale and production of Coca-Cola, along with other soft
drinks, was initially banned after the allegations, until the High Court in Kerala
overturned ruled that only the federal government can ban food products. Coca-Cola
has also been accused of excessive water usage in India.
CHAPTER-3

ADVERTISMENT STRATEGY OF
PEPSI AND COKE
Thanda chalega kya ... Pepsi and Coke

Soft drinks is perhaps the most hard fought product categories in India in every
respect - media, events, distribution, pricing, communication, endorsements and so
on... Every year it consistently emerges as one of the top 10 categories on television.
We, at AdEx India, have looked at year 2003 to understand the year that was for this
exceptionally competitive segment!

One clear and predictable pattern in 2003 was the two clear peaks of ad spend - one
during the world cup and the other during the festive time. Interestingly, while Pepsi
dominated media budgets during World Cup, Coca-Cola seems to have been the
dominant spender in the month of September.

However, this time we at AdEx thought of dwelling on aspects of advertising in terms


of strategy adopted by the different players in this category and the duration of
advertising across genres on TV and press.

This paper tries to throw some light on the following aspects: -

• Genre wise and channel wise composition of advertising on TV


• Advertising strategy adopted by the aerated soft drink players on TV and press
• Zone wise and genre wise advertising on press
• Specific case: zone wise and genre wise advertising for Pepsi and Coke

Channel wise and genre wise composition of advertising on TV

Genre wise analysis on aerated drinks establishes that this category is heavily
advertised on feature films, music, cricket and soaps. Major part of the advertising on
Cricket can be attributed to the fact that Pepsi was the official sponsor of the Cricket
World Cup 2003. However, apart from cricket Pepsi is actively present on other types
of sports such as soccer, wrestling etc.
On the other hand, 10 per cent of advertising of aerated drinks is concentrated on
music channels, Channel V and MTV scores over others, where Coke has a
significant share.
A very interesting insight emerges-- on press about 98 per cent of the advertising for
aerated soft drink is concentrated in the general interest segment. Whereas, only
about 2 per cent advertising is concentrated on youth, film magazine, business, and
women's magazine, in flight and education and career. And from that 2 per cent
share, 1per cent advertising is done on youth magazine.

Advertising strategy adopted by the aerated soft drink players on TV and press

'Exhibit-4' highlights the strategy undertaken by some of the players in the aerated
soft drink category. Couple of interesting insights transpire. One is how frequently do
they advertise and the duration/CC for which they advertise. Such as, Coke
advertises more, relative to Pepsi both interms of frequency and duration on TV.
While Pepsi scores over Coke on press.
Genre wide advertising for Pepsi and Coke(duration)

'Exhibit-5' clearly helps to establish a very interesting fact that Coke is advertised
more on genres such music, soaps, news bulletin and Pepsi is advertised more on
sports such as cricket, soccer and wrestling.
Zone wise advertising for Pepsi and Coke (CC)

'Exhibit-6' clearly shows that in terms of advertising on press, Coke is more active in
North, while Pepsi is more active in South.

To summarise...

While most of the brands in the soft drink category follow the media spend distribution
pattern, the trend is different for the leaders- Pepsi and Coke. The differential media
strategies of the two players explains the fact that though the broad target group for
the brands may be the same but they can be reached through different combination
of media vehicles, thereby avoiding the overlap of advertising messages in other
words the 'ad clutter'. However, the marketwise strategy may be specific to each
brand.
In the article Marketing and globalization written by Lynne Ciochetto it has compared
the different marketing strategies that are used by Pepsi and Coke in India and to
grow there market share. In the article its mentioned various times that Pepsi is a
more successful brand in India that Coca-Cola which left India in 1978 and returned
back in 1993. There is a definite visible marketing war between Coca Cola and Pepsi,
and billboards in the countryside promote their products at prices cheaper than
anywhere else in the world, 5 Rs for 200ml is about 10c. Both companies are
increasingly targeting the youth market. Coke made losses in India for many years
but was starting to make a profit since the late 1990s.(Ciochetto.l,2004).

In a study conducted by Adex India, analysis on aerated drinks establishes that Pepsi
and coke heavily advertised on feature films, music, cricket and soaps. Major part of
the advertising on Cricket can be attributed to the fact that Pepsi was the official
sponsor of the Cricket World Cup 2003. However, apart from cricket Pepsi is actively
present on other types of sports such as soccer, wrestling etc. On the other hand, 10
per cent of advertising of aerated drinks is concentrated on music channels, Channel
V and MTV scores over others, where Coke has a significant share. (Adex India 20
Apr 2004)

Pepsi launched an ambitious marketing campaign sponsoring Cricket celebrities and


athletes from the World Cup. Coca-Cola launched its Lifestyle Advertising Campaign
as a method of building brand loyalty among its target markets: “India A” (18-24 year
old urban youth) and “India B” (rural youth). They used a music director and an actor
to promote the project. Most importantly, they tried to create a connection between
local idioms and their products so that they would stick. The use of celebrities is a
powerful marketing tool across cultures to promote products. (Augistine.J, 2008)

Other then these there have been various studies done under this context such as
study done by Rajat Acharya and Bebjani Mukherjee in which they considered
different kinds of advertising such as targeted, informative and indirect comparison
ads were used in order to augment the demand for products or to encourage
customers to switch brands. Have the large amounts spent on advertising by firms in
different industries borne rewards? How do customers perceive advertisements and
how do they impact their buying decisions?

In one of the other article they have used semi parametric, information-based
estimator to estimate strategies in prices and advertising for Coca-Cola and Pepsi-
Cola. Separate strategies for each firm are estimated with and without restrictions
from game theory. These information/entropy estimators are consistent and efficient.
These estimates are used to test theories about the strategies of firms and to see
how changes in incomes or factor prices affect these strategies. (Golan.A, Karp.S,
Perloff.M,2000). With the help ot this method they were able to flexibly estimate firms
strategy subject to restrictions.

To give an overview there are many different strategies adopted by cola majors such
as:-

Pepsi has gone in for concentration segmentation since the beginning. Pepsi has
targeted the youth segment instead of trying to be something to all segments. Pepsi
has since the beginning strived its international position as a drink for new
generation, and has succeeded in positioning itself for the younger generation. (ICFAI
University press, 2008)

Pepsi Cola’s Strategy is based on:

Target care brands

Focus on business growth

Satisfy market priorities

Focus on franchising with building care of company owner.

Pepsi also has a very well managed distribution system and coupled with aggressive
marketing and marketing policy has achieved the number one position in India soft
Drinks market. India is one very few countries where Pepsi has been able to beat its
rival Coke for number one spot. (ICFAI University press, 2008)
Coke has a completely different strategy which is the 3A’s namely: - availability,
affordability and acceptability has its focus on the customers and consumers. It is
basically a strategy to reach increasing number of consumers. (Business world,
2008)

Availability

The main challenge of Coca-Cola is to place “within an arm’s reach of desire”. This it
plans to do with improved or innovative new packaging, dispensing systems,
distribution systems and marketing programs. (Business world, 2008)

Affordability

Cola addresses this aspect by making the products available at a price affordable to
the consumer. This is done by continually focusing on making the production and
distribution system more efficient and cost effective. (Business world, 2008)

Acceptability

Acceptability requires the product to be of the highest quality. Also acceptability can
be affected through marketing, sponsorships, promotions community programs etc.
(Business world, 2008)
Pepsi & new advertising strategy

With the swinging fortunes of cricket stars, PepsiCo India is gearing up to launch a
brand new advertising campaign for Pepsi with out any star endorsers. Currently,
PepsiCo India has twelve star endorsers from Bollywood and the Indian cricket team.
“Pepsi’s new campaign will be a consumer–centric advertising campaign without any
celebrities,” informed industry sources. ‘Celebrities may come and go but brands are
forever,’ seems to be PepsiCo’s new motto.

Incidentally, PepsiCo has not yet renewed Sachin Tendulkar’s contract which expired
in May this year. According to industry sources, PepsiCo is now shifting its marketing
focus to MS Dhoni, the highest paid IPL player. “The company will bring in MS Dhoni
to the centre space from side lines. Of course, PepsiCo will make Dhoni wear some
decent clothes to erase his Lungi-clad image,” said Prahlad Kakar, a leading ad film
maker in Mumbai. Remember Pepsi’ ads featuring Dhoni, captain of the Chennai
Super Kings team?

Enthused by the response to Dhoni’s ‘Mind it’ ads, the company will now project
Dhoni as its brand icon in the next few months, predict industry analysts. “Young cine
stars Deepika Padukone and Ranbir Kapoor now star in Pepsi Youngistan campaign.
Very soon, we may see Dhoni sharing the screen space with Shar Rukh Khan in
Pepsi ads,” added analysts.When contacted by FE, PepsiCo India declined to
comment on its advertising plans.

On PepsiCo’s shift in strategy, Ramesh Narayan, veteran advertising professional


based in Mumbai said: “I think every brand needs to keep in mind its profile. And
Pepsi has always stood for the youth. I do not think it is any comment on Tendulkar
as a player but they need to refresh their stable of sports person with younger
people.” In sync with its new strategy, PepsiCo has roped in Ishant Sharma and Rohit
Sharma to feature in its ‘Yeh hai Youngistan Meri Jaan’-dumping cricket stars Dravid
and Ganguly.
Meanwhile, Frito Lay, PepsiCo’s snack foods arm has revamped its retail strategy by
offering 33% extra in all ‘Lays’ packs -- at no extra cost. “For ‘Kurkere, it is offering
20% extra. In fact, PepsiCo’s pricing strategy is quite effective in today’s price-
sensitive markets,” said a leading retailer in Mumbai.

With the swinging fortunes of cricket stars, PepsiCo India is gearing up to launch a
brand new advertising campaign for Pepsi with out any star endorsers. Currently,
PepsiCo India has twelve star endorsers from Bollywood and the Indian cricket team.

“Pepsi’s new campaign will be a consumer–centric advertising campaign without any


celebrities,” informed industry sources. ‘Celebrities may come and go but brands are
forever,’ seems to be PepsiCo’s new motto.

Incidentally, PepsiCo has not yet renewed Sachin Tendulkar’s contract which expired
in May this year. According to industry sources, PepsiCo is now shifting its marketing
focus to MS Dhoni, the highest paid IPL player. “The company will bring in MS Dhoni
to the centre space from side lines. Of course, PepsiCo will make Dhoni wear some
decent clothes to erase his Lungi-clad image,” said Prahlad Kakar, a leading ad film
maker in Mumbai. Remember Pepsi’ ads featuring Dhoni, captain of the Chennai
Super Kings team?

Enthused by the response to Dhoni’s ‘Mind it’ ads, the company will now project
Dhoni as its brand icon in the next few months, predict industry analysts. “Young cine
stars Deepika Padukone and Ranbir Kapoor now star in Pepsi Youngistan campaign.
Very soon, we may see Dhoni sharing the screen space with Shar Rukh Khan in
Pepsi ads,” added analysts.When contacted by FE, PepsiCo India declined to
comment on its advertising plans.

On PepsiCo’s shift in strategy, Ramesh Narayan, veteran advertising professional


based in Mumbai said: “I think every brand needs to keep in mind its profile. And
Pepsi has always stood for the youth. I do not think it is any comment on Tendulkar
as a player but they need to refresh their stable of sports person with younger
people.” In sync with its new strategy, PepsiCo has roped in Ishant Sharma and Rohit
Sharma to feature in its ‘Yeh hai Youngistan Meri Jaan’-dumping cricket stars Dravid
and Ganguly.

Meanwhile, Frito Lay, PepsiCo’s snack foods arm has revamped its retail strategy by
offering 33% extra in all ‘Lays’ packs -- at no extra cost. “For ‘Kurkere, it is offering
20% extra. In fact, PepsiCo’s pricing strategy is quite effective in today’s price-
sensitive markets,” said a leading retailer in Mumbai.

Brand Localization Strategy of COKE

India A: “Life ho to aisi”

“India A,” the designation Coca-Cola gave to the market segment including
metropolitan areas and large towns, represented 4% of the country’s population.33
This segment sought social bonding as a need and responded to aspirational
messages, celebrating the benefits of their increasing social and economic freedoms.
“Life ho to aisi,” (life as it should be) was the successful and relevant tagline found in
Coca-Cola’s advertising to this audience.

India B: “Thanda Matlab Coca-Cola”

Coca-Cola India believed that the first brand to offer communication targeted to the
smaller towns would own the rural market and went after that objective with a
comprehensive strategy. “India B” included small towns and rural areas, comprising
the other 96% of the nation’s population. This segment’s primary need was out-of-
home thirst-quenching and the soft drink category was undifferentiated in the minds
of rural consumers. Additionally, with an average Coke costing Rs. 10 and an
average day’s wages around Rs. 100, Coke was perceived as a luxury that few could
afford.

In an effort to make the price point of Coke within reach of this high-potential market,
Coca- Cola launched the Accessibility Campaign, introducing a new 200ml bottle,
smaller than the traditional 300ml bottle found in urban markets, and concurrently
cutting the price in half, to Rs. 5. This pricing strategy closed the gap between Coke
and basic refreshments like lemonade and tea, making soft drinks truly accessible for
the first time. At the same time, Coke invested in distribution infrastructure to
effectively serve a disbursed population and doubled the number of retail outlets in
rural areas from 80,000 in 2001 to 160,000 in 2003, increasing market penetration
from 13 to 25%. Coke’s advertising and promotion strategy pulled the marketing plan
together using local language and idiomatic expressions. “Thanda,” meaning
cool/cold is also generic for cold beverages and gave “Thanda Matlab Coca-Cola”
delicious multiple meanings. Literally translated to “Coke means refreshment,” the
phrase directly addressed both the primary need of this segment for cold refreshment
while at the same time positioning Coke as a “Thanda” or generic cold beverage just
like tea, lassi, or lemonade. As a result of the Thanda campaign, Coca-Cola won
Advertiser of the Year and Campaign of the Year in 2003.

Aiming to increase its presence in the Indian market and gain wider acceptability, soft
drink giant Coca Cola has decided to add a punch of health to its India portfolio,
possibly by early next year.

"We are looking at offering total beverage solutions in the non-alcohol segment. This
would include not only carbonated drinks but also juices and health-based products,"
Coca Cola India Chief Atul Singh told PTI here.

Looking at growing health consciousness as an "opportunity" to expand, Coke, which


is striving to reverse the declining sales and profitability, is going to match rival Pepsi
in terms of offering a complete spectrum of beverages but says no to snacks, a factor
that has contributed to good showing by its competitor.

"We are currently an impulse driven brand, focussed around excitement. Now we
would like to enlarge this and appeal on health factors as well," Singh said.

On the timing of the new launches, he said it could be by the "early part of next year".

Enlargement of the product basket in the "focussed Indian market" in tandem with
aggressive advertisement campaign for each of its drink and a streamlined
distribution and marketing strategy appears to the solution for Singh, who has been
brought in from China quite recently to bring back the fortunes for the Atlanta-based
cola giant.

The company has formed a 'health and wellness board' for advice on the health
products. This includes eminent doctors, dieticians, food scientists and nutritionists.

"The board will advice us on how to make use of traditional Indian remedies in
formulation of health beverages. It will help us identify what are the needs of the
Indian consumer in the health sphere like anaemia, iron deficiency, among others,"
Singh said.

Making clear the company's seriousness on the health front, Singh said, "Coca Cola
will go into the juice business very aggressively."

The company, which has invested over one billion dollars in the Indian market,
carries a baggage of accumulated losses and Singh is determined to turn around
operations in the next few years.

The company is redefining its marketing, distribution and brand positioning in India
and has also decided to go in for an aggressive advertising campaign to corner
numbers.

Contrary to advertising strategy focussing on a few products, coke India is now


working for visibility for each of its products through aggressive campaigns, an
exercise that necessitated it to cough up nearly 40 per cent more in the last six
months. Asked about the provisions for the current year and the next one, Singh
indicated that ad-spent could go up by another 40 per cent this year.
Coke and Pepsi Learn to Compete in India: Case Analysis

Pepsi entered into the Indian beverage market in July 1986 as a joint venture with
two local partners, Voltas and Punjab Agro, forming “Pepsi Foods Ltd.” Coca-Cola
followed suit in 1990 with a joint venture with Britannia Industries India before
creating a 100% owned company in 1993 and then ultimately aligning with Parle, the
leader in the industry. As both companies would soon discover, “competing in India
requires special knowledge, skills, and local expertise…what works here does not
always work there.” (Cateora & Graham, 2008, p. 604). In this article, I will analyze
the primary obstacle to Pepsi and Coca-Cola’s success, discuss their strategies to
cope with the issue, and ultimately propose my own suggestions to improvement.
Major Obstacle: Political / Legal Environment The primary barrier to Pepsi and Coca-
Cola’s entry into the Indian market was its political / legal environment as a result of
its history. First, despite the liberalization of the Indian economy in 1991 and
introduction of the New Industrial Policy to eliminate barriers, such as bureaucracy
and regulation to foreign direct investment, India still had a strong history of
protectionism, dating back most recently to its economic policies following the Gulf
War. India’s past promotion of “indigenous availability”

1. depicts its affinity toward local products. In fact, the idea of


protectionism in industries where India had a comparative advantage can be
seen as early as the 1920’s. Britain and India used “discriminating protection”
to ward off German and Belgian competitors in the steel industry.
(Rothermund, 1993). Due to India’s suspicion of foreign business stemming
from past history, both Pepsi and Coca-Cola received alien status upon entry
to the Indian market.
2. The two corporations were required to follow many laws, designed as
obstacles to impede foreign business. For example, sales of soft drink
concentrate by Pepsi to local bottlers could not exceed 25% of total sales.
Also, foreign businesses were not allowed to market their products under the
same name if selling within the Indian market. (E.g. Lehar Pepsi) Most
controversial was the agreement Coca-Cola was forced to sign to sell 49% of
its equity in order to buy out Indian bottlers. “This response might have been
acceptable if investment rules in India were clear and unchanging, but this was
not the case during the 1990’s.” (Cateora & Graham, 2008, p. 608). As St.
Augustine said, “an unjust law is no law at all.” Because of the lack of
consistency in the legal environment, there was a greater importance placed
on lobbying the politicians. As Coca-Cola soon discovered though, when there
was a change in the oversight of the Foreign Investment Protections Board
(FIPB), all previous lobbying became useless. Lack of solid institutions gives
way to corruption. In fact, India has still not ratified the OECD designed to
combat corruption.

Coke and Pepsi’s Controls

Due to the external nature of the political and legal environment of operating in India,
much of the problems were out of Coca-Cola and Pepsi’s control. Even if the two
were to have performed a more extensive environmental analysis, many of the
problems would not have been forecasted. Government situations are dynamic and
inconsistent where there is not a strong foundation of law. Thus, Pepsi and Coca-
Cola focused on the following controllable aspects

1. Price

: Coca-Cola reduced prices nationwide by 15-25% to make them affordable and easy
to get access to. Pepsi introduced returnable glass bottles for customers to recoup
costs.

2. Product

: Coca-Cola and Pepsi launched different product lines to appeal to the Indian
consumer tastes. They started with product lines that were already available, such as
cola, fruit drinks, and carbonated water. Then, when the market was “ready”, they
launched other lines, such as bottled water (Coke- Kinley and Pepsi-Aquafina) and
clear lime sodas (Coke-Sprite, Pepsi-7 Up).
3. Promotion:

Both Coca-Cola and Pepsi adapted to the local market with promotions. They
promoted heavily during the Navrarti festival. Pepsi gave away a kilo of Basmati rice
with every refill of a case of Pepsi. This is an effective strategy to blend the old (rice)
with the new (Pepsi). Coca-Cola gave away vacations to Goa, a famous resort in
India. Further, they teamed up with influential figures in Indian pop-culture to promote
their products. Pepsi launched an ambitious marketing campaign sponsoring Cricket
celebrities and athletes from the World Cup. Coca-Cola launched its Lifestyle
Advertising Campaign as a method of building brand loyalty among its target
markets: “India A” (18-24 year old urban youth) and “India B” (rural youth). They used
a music director and an actor to promote the project. Most importantly, they tried to
create a connection between local idioms and their products so that they would stick.
The use of celebrities is a powerful marketing tool across cultures to promote
products.

4. Channels of distribution:

Production plants and bottling centers were strategically placed in large cities all
around India. More were added as demand grew, along with new product lines. In
Coca-Cola’s case, the JV with Parle provided access to its bottling plants and its
products. By forming partnerships, both Coca-Cola and Pepsi were able to get initial
access into the market.

5. Research:

It seems that prior research into general market demand may have been the most
overlooked aspect by Coca-Cola and Pepsi. India has not ever been considered a
lucrative market for the soft drink industry. In 1989, Indians per capita were
consuming only three bottles per year. One might question the risk-reward analysis
that both companies partook in. Why enter a high-risk political/economic market
where there is a very little proven track record of success in beverages? However,
both Pepsi and Coca-Cola did succeed in continuing to research emerging trends
and implementing them. Pepsi created smaller bottles to keep up with the trend of
high frequency/ high volume consumption. Coca-Cola launched the “minis” in an
effort for higher volume. Both met trends in demand with new product lines. (E.g.
bottled water). Also, both Coca-Cola and Pepsi kept a close watch on the advertising
campaign effectiveness, through research of likeability of the ad and intention to buy.
This measure ensured that advertising dollars were being strategically allocated and
not wasted. Suggestions Despite many of the failures both Pepsi and Coca-Cola
experienced due to the unforeseen external environment, including the boycott
placed on American and British Goods following the Second Gulf War in 2003, the
following methods could have been implemented to improve success in the Indian
market. To begin, both companies should have focused more on education of its
products. What are the benefits? Why is bottled water so valuable in an environment
with such poor drinking water? The market still hasn’t taken off so they need to
penetrate harder. In 2003, India’s annual consumption rate was still a meager seven
per person. Specifically, Pepsi spent very small amounts on its 7UP marketing
campaigns in India due to its relatively low market size (4.5%). Advertising dollars
should be pumped more freely and strategically if they want to see a return on
investment. Second, target markets should be defined more specifically. Coca-Cola
separates its markets as “India A” and “India B” as defined above. This is too broad
and lacks focus. We can differentiate demographics by gender, race, age, language,
interests, job, location, etc…

Third, Coca-Cola entered the market at a poor time because they had to agree to
abide by all of the Foreign Investment Laws of that year. To avoid having to sell its
49% stake though, Coca-Cola should have agreed to set up Greenfield bottling units
instead, as Pepsi did. Further, Coca Cola lost valuable market share by entering the
beverage market after Pepsi. By the time Coca-Cola was fully owned in 1993, Pepsi
had already amassed a 26% market share.

Next, Coca Cola made a mistake in trying to get out of its promises. “Why doesn’t this
multinational set an example by fulfilling its own commitment? They went into this
with their eyes open.” (Cateora & Graham, 2008, p. 608). Coca-Cola already made
the mistake by entering into the contract they did. By continuing to apply for
extensions and attempting to deny voting rights for the Indian stake, Coca-Cola was
only tarnishing its public image and destroying its relationship with the government.
When entering into a foreign market, maintaining a good relationship with the host
country’s government is crucial. Finally, both Coca-Cola and Pepsi should have been
proactive regarding oversight (e.g. environmental responsibility). Coca-Cola created
the advisory board to regain the public’s credibility only after its reputation was
already tarnished with the allegations of pesticide residue. The bad press spiraled
into more bad press after the activist group in California got involved. This could have
been prevented with measures in place. Both companies should have been ready for
a health scare after 1988 when it was discovered that BVO, an essential ingredient in
locally produced soft drinks, was carcinogenic. In conclusion, the case involving
Pepsi and Coca-Cola’s entry into the Indian market provides key lessons for future
managers looking to invest overseas. While many events are external and thus out of
the manager’s controls, there are many active approaches we can take to help
ensure success in the foreign market. For example, we need to research the market
and trends ahead of time. And we should be fully aware of the history, geography,
political, and legal considerations. Only then can we succeed in our quest to
“glocalize”—(i.e. adapt our strategy to the local culture).
STRATEGIC ANALYSIS:
PEPSI-COLA COMPANY
STRATEGIC ANALYSIS: PEPSI-COLA COMPANY

Soft drinks, more popularly known as sodas, are not exactly referred to as
items of necessity. People can live without sodas. In fact, people might be safer if
they don’t drink soft drinks so much. And yet, soft drinks somehow make it to the top
of the list of items most bought by the average consumer. Why is this, exactly? Well,
for one thing, sodas are delicious. They stand between liquor and juice. Those who
are too young to drink beer but think fruit juice is too juvenile can order sodas. Those
too old and are putting their health at risk by drinking hard drinks can enjoy soft drinks
and no one would think any less of them. In short, sodas have a mass appeal. They
carry an image with them; an image of a person with a comfortable lifestyle.

This essay will take a look at the company Pepsi Cola. For a better
understanding of the subject company, this paper will delve into a brief history of the
Pepsi Company’s growth over the years and the effects of competition on Pepsi’s
strategies in the international and domestic market. This essay will attempt to discuss
the effectiveness of Pepsi’s marketing strategies and its results.

Body

Pepsi was one of several other brands that got their start in the late 1800s. A
North Carolina pharmacist named invented "Brad's Drink" in 1893, which was later
renamed Pepsi-Cola. Pepsi’s early growth was less significant than that of Coke's,
and its real strength as a competitor to Coke began after became CEO in 1950, a
time when Pepsi was nearly bankrupt. was expected to liquidate the Pepsi-Cola Co.
Instead, he made it his goal to "beat Coke" (, 2003).

Pepsi Cola has taken part of that appeal and has used it in several different
marketing strategies. Pepsi was born after Coca Cola, or Coke. It began in North
Carolina, invented by a pharmacist named . It came out for public use on August 28,
1898. It had the reputation for being a food drink; was a pharmacist and he claimed
that his concoction aided digestion. This claim, in a way, was already a marketing
strategy, because during those times, people were always buying medicinal aids for
digestion.

Pepsi spread to Canada in 1906, and the year after that, it was registered in
Mexico. By 1908, Pepsi had upgraded their transportation delivery services from
horse-drawn carts to automobiles. Pepsi seemed to be becoming successful in such
a short time. But there is still a problem. By the time Pepsi Cola came out, Coke had
already made its mark among the public and the newcomer Pepsi found it hard to find
a consumer base.

For their first effective marketing strategy, they put their sodas in beer bottles
and sold them cheaper than Coke. There was more drink for less money. They
started selling, and Pepsi was seen as the poor man’s cola. Although this strategy
worked, Pepsi recognized that if their image remained as that of the Poor Man’s
Soda, their customer base would never widen. In order to improve its image, Pepsi
devised a new marketing strategy by employing celebrities for its advertisements.
One of their first celebrity endorser was , the pioneer for automobile racing.

The advertising strategy worked, but Pepsi still could not really dethrone Coke.
In the 1920’s, the company released the ad Drink Pepsi. It will satisfy you. However,
despite industrious efforts, the Pepsi Company still fell into bankruptcy due to the fall
of the sugar market. It suffered several years of losses before it was sold to Loft Inc.,
a giant candy company. Loft was what Pepsi was waiting for. The company began to
regain its former success. 1936 saw the formation of Pepsi Limited of London, and in
1938, the Pepsi logo was trademarked in the Soviet Union. The company sold the
drink in 12 oz. bottles and launched the advertising campaign of Twice as Much for a
Nickel.

The very first advertising jingle, Nickel, Nickel, was broadcasted by Pepsi
nationwide. The track enjoyed tremendous popularity. Soon, Pepsi became bigger
than Loft Company, and Loft changed their name to Pepsi-Cola Company. By 1947,
Pepsi has amassed millions of dollars from the international market and it moved to
the Philippines and the Middle East. They added two more advertising campaigns
and in 1953, Pepsi began its Light Refreshment campaign in order to appeal to a
newly weight-conscious America. Pepsi continued to try and improve its image from
being considered as a bargain brand and attracted the young, fashionable consumers
with their theme, Be Sociable, Have a Pepsi. Pepsi targeted the younger audience
and those who are young at heart. During the baby boomer generation, Pepsi
positioned itself as the drink for the new generation with a series of themes designed
to appeal to the youth. These youths were said to belong to the Pepsi Generation in
the early 1960’s. Diet Pepsi and Mountain Dew were then added to the list of
products.

By now, Pepsi’s prevailing theme was clearly focused on the youth and their
active lifestyles. In 1969 to 1973, Pepsi portrayed the social changes of the times and
projected the American image of unity and individuality. Pepsi has broken its way into
international markets. Apparently, Pepsi’s advertising strategies of celebrity
endorsers is very effective. But advertising isn’t Pepsi’s only strategy. Moreover,
there are several factors for effective international marketing strategies, and Pepsi
has exploited most of them.

Before breaking into an international market, a company must familiarize itself


first with the new country’s culture, people, and economy and government
regulations. The company must also define their objectives for entering a new
market. Pepsi began in the early 1900’s; a time when government regulations for
business were less strict. But Pepsi did not break into the international market
immediately. It first cultivated a solid consumer base in their homeland, America.
Only then did the soft drink company set their sites on foreign countries. Canada was
their first target. Their objective at the time was not simply to gain profits, but to
broaden the reach of their company. Canada was, perhaps, closest to America, and
therefore was the easiest to reach and their economy and government regulations
there were familiar to Americans. Pepsi used their old strategy as well as a new one;
they just concentrated on selling their cheaper but plentiful drink, and they expanded
their distribution system from carriages to cars. In Canada, they maintained their
target audience through the image of Pepsi being the Poor Man’s Soda.
Most of their early consumers in Canada belonged to the middle class, and
Pepsi is still known as the preferred drink of these people there up until now. After
being trademarked in Canada, Pepsi entered a new market in Mexico and then in
Argentina, but only after incredible losses to the original company. Loft Company had
injected new life into Pepsi, though, and it was with new marketing strategies that
Pepsi came back. For the next several years, Pepsi employs different marketing
strategies. They used their bottling networks to start marketing in foreign countries.

When Americans became more watchful of their weight, Pepsi launched a new
campaign suited for this change of times, the Pepsi Light Refreshment. However,
though, Pepsi was forced to change their cheaper drink image and they had to raise
their prices in order to compete in the market in the 1950’s, and this included their
franchises outside of the United States. Once more, their advertising strategy helped
make this transition easier for consumer’s to accept. 149 bottling plants operating in
61 countries outside of the U.S. was a testament to the effectiveness of the Pepsi’s
marketing strategies. They were now operating globally.

In 1965, Pepsi employed another marketing strategy which was company


expansion. They merged with Frito-Lay, the most popular snack brand in the world.
PepsiCo was formed. Pepsi took care of the beverages while Frito-lay manned the
snacks. In 1966, PepsiCo settled into the Eastern European and Japanese markets.
They also introduced new products; Diet Pepsi and Mountain Dew.

Afterwards, PepsiCo dipped its marketing hands into acquiring even more
business. They bought Taco Bell and Pizza Hut and exerted effort into developing
overseas restaurant ventures. One of the most successful advertising and promotion
campaigns in history, the Pepsi Challenge, provides evidence on the importance of
bottler coordination and on the difficulty of attaining such coordination. The success
of the Challenge depended crucially on bottler execution. The bottlers were required
to place spot advertising and in-store displays, develop and execute effective local
price promotions, and discuss the results in detail with Pepsi- Cola to help the CM
fine-tune the campaign ( 1993).
After many successes, PepsiCo then underwent reorganization of the
company, diversifying itself into PepsiCo Worldwide Foods and PepsiCo Worldwide
Beverages and placing their beverages and food products under the separate
operations respectively. All through the 1990’s, Pepsi peppered their promotions,
campaigns, advertisements and themes with celebrities from practically all industries.
They also rode the Internet wave by creating a worldwide website that was indeed
the top of the line and was imitated by other companies. This website didn’t just
feature the Pepsi products; it also contained attention-grabbing stuff like movie
previews, music, articles, games, and promotions.

Pepsi also repeated their promotional ways with their new Pepsi Stuff promos
that involved basketball superstar . The promo also gave the buyer chances of
earning points which they can then exchange for Pepsi prizes. As the new millennium
rolled around, Pepsi resorted to their tried and proven promotions and
advertisements strategies. They also introduced brand new products such as Pepsi
Blue, endorsed by , and the new Code Red from Mountain Dew. They brought back
the immensely popular Pepsi Challenge. They joined up with the National Football
League and became their official soft drink sponsor with Gatorade. Pepsi is also
responsible for the world’s first ever commercial to be filmed in space. This ad was all
part of the promotion for Pepsi’s Project Blue.

Pepsi is also active in securing alliance deals with other big corporations. This
is a merger-like strategy proven to be effective in marketing. For example, Pepsi has
closed an alliance with Warner Brothers International Theaters and with Major
League Baseball. Warner Brothers has granted Pepsi exclusive pouring rights, which
means it is the only drink served in all the Warner Brothers International Theatres.

Another component of the new competitive strategies of Pepsi-Cola is their


increasingly complex and sophisticated advertising and promotions--a major tactic in
the so-called Cola Wars. The two (Pepsi and Coca Cola) constantly strive to devise
advertising campaigns that best each other. But the ultimate success of these
campaigns often depends on the cooperation of the bottlers to implement the
campaign in their territories. Bottlers must cooperate by arranging spot coverage and
by implementing coordinated promotion and pricing policies that build on the theme of
the national advertising campaign ( 1993).

Now, it is quite clear that Pepsi couldn’t have attained world wide fame so
easily. Especially because it’s competition happens to be the giant Coca-Cola
Corporation. It is no secret that most of Pepsi’s strategies were designed to compete
with Coke. Coke came first, and even until now, it is still the leading soft drink brand
preferred by most Americans and a large number of foreign drinkers. But Pepsi is
keeping up with Coca Cola.

Even from the very beginning, when Pepsi was just starting in the early 1900’s,
the government had passed the Pure Food and Drug Act that prohibited the use of
certain drugs such as arsenic, uranium, barium and plenty of others in drinks and
foods. At this time, Coke and other existing soft drink brands had to change their
formulas, but Pepsi did not. It proudly boasted that it has already met all federal
requirements. While other brands were changing formulas to suit government
standards, Pepsi was cutting into their market share. Pepsi was one of the first
markets to use automobiles to improve their distribution system, and what the
younger company lacked in prestige when compared with Coke, it made up for in
ambitious advertising. This constant competition has been dubbed as the Cola Wars.

Pepsi has gained a reputation for catering to the teenagers, those in their
twenties and even the young at heart. This is a customer base that other soft drink
brands have previously overlooked in favor of the mature consumers. Pepsi also has
the distinctive style of portraying the times in their campaigns. Their Generation Next
campaign suggested that Pepsi is not just a drink for the next generation; its drinkers
are also a generation ahead of their counterparts. Pepsi has cultivated an image for
itself as the drink for the modern times. It has discovered that the buying power of the
youth and the marketing power of celebrities were compatible. They have earned
generously out of this formula.

The simple product and marketing strategies of Pepsi were critical to the
efficiency of their independent bottling systems. Neither Pepsi nor Coca Cola
introduced new products, new packages were introduced infrequently, and
advertising campaigns were long-lived relative to today. The tactics of modern
promotion, which require constant change and close coordination of national
advertising with local promotion, did not exist ( 1993).

Pepsi-Cola concentrated on markets where it could prosper alongside Coca-


Cola, rather than trying to defeat it. Since then, some of Pepsi-Cola's major moves
include a new soft drink plant in Russia, it's fifth in the territory thus far; an alliance
with Brazil's largest brewer, , giving it tremendous access to a healthy chunk of Latin
America; and Norway's signed an extensive franchise bottling agreement with
PepsiCo for production, distribution and sales for nearly all of Norway. Operationally,
the company's new focus has been to allow for and adapt to market differences, but
employ standard best-practices. And while the company has pulled out of some
markets, it has pushed forward in a number of others, constructing new plants, and
putting new emphasis on single-serve distribution (, 1998).

Conclusion

The Pepsi-Cola drink was invented in 1898 and grew basically by following the
Coca- Cola marketing, product, and distribution strategies. Like Coca-Cola it
advertised as heavily as finances permitted, and was distributed through soda
fountains and franchised bottlers.

Assessing Pepsi’s marketing strategies; it is clear that Pepsi has made several
right choices. With the existence of Coke, Pepsi can never lay claim to true originality.
It is not that unique. So, Pepsi took advantage of their late entry into the market by
lowering their prices. Before it entered the international market, it first familiarized its
customers with its product thoroughly in its home base. By the time Pepsi was ready
to enter the international market, it had a good grasp of what its target audience really
is.

In conclusion, Pepsi’s marketing strategies, from past to present included:


enhancing their distribution system, knowing the environment of the foreign market
and finding the things their target buyers had in common, adding new innovations
and products while improving the old products, imaginative advertising, use of
advanced technology, assertive promotions, trendy, socially-aware campaigns,
alliances with major corporations and expansion into other industries such as
restaurants. Even Pepsi’s rival, Coca-Cola, had a hand in Pepsi’s success. When
Coke makes a marketing move, even their buyers can’t help but hold their breath,
waiting for Pepsi’s response. So, in effect, Coca-Cola’s massive fame has also
rubbed off on its rival. It even isolated these two beverage companies from other soft
drink brands.
CHAPTER-4

INTERPRETATION OF THE SURVEY


DATA ANALYSIS AND INTERPRETATION

Complete results (240 respondent’s total):

1. "I feel brands should engage with their customers by Pepsi and Coke"
Pepsi Coke
Strongly Agree 97 109
Agree 118 107
Disagree 19 23
Strongly Disagree 6 1
2. "I have a much better impression customer service"
Pepsi Coke
Strongly Agree 87 78
Agree 107 119
Disagree 41 36
Strongly Disagree 5 7
3. "I am interested in receiving special offers and coupons from "
Pepsi Coke
Strongly Agree 36 42
Agree 96 98
Disagree 70 68
Strongly Disagree 38 32
4. "If a company uses new technology , it would affect my overall perception of
their brand"
Pepsi Coke
Strongly Agree 121 134
Agree 91 84
Disagree 27 20
Strongly Disagree 1 2
5. "I would recommend a company's product or service based on their quality"
Pepsi Coke
Strongly Agree 40 46
Agree 104 98
Disagree 83 74
Strongly Disagree 13 22
6. "I would be more willing to purchase a product from a company "
Pepsi Coke
Strongly Agree 54 48
Agree 135 128
Disagree 45 56
Strongly Disagree 6 8
7. How many products of pepsi or coke do you know?
Pepsi Coke
One 29 24
Two 34 28
Three 101 121
More 46 34
None 30 33
8. How you know about?
Pepsi Coke
News paper 19 24
Radio 65 60
TV ads 43 38
Friends 65 62
Sales man or distributor 48 56
9. What is your age range?
<18 5
19-24 26
25-34 61
35-44 99
45-54 38
55-64 9
65+ 2
10. What is your gender?
Female 95
Male 145
Chapter-5

SUMMARY, FINDINGS & SUGGESTIONS


FINDINGS

1) The company is maintaining the quality of the products and it has good quality
control Dept.
2) Now a day because of changing the food habits the soft drinks are added to
their food habits.
3) Pepsi soft drinks are occupying more than half of the soft drinks market.
4) The demand for the fruit based soft drinks is go on increasing and they
occupied the top selling drinks position.
5) Sales promotion activities taken by the Pepsi Company is good as per the
retailer’s opinion when compared to coke.
6) The Pepsi Company’s supply of drinks is good but they are not providing the
sufficient drinks to the outlets.
7) The No. of Visi coolers in the market is less when compared to the Coke
Company.
8) Some of the retailers are placing the other products also in the company
coolers.
9) Pepsi company’s offers to the retailers are not good in the view of the retailers.
10) The dealers are not giving the proper information about the new products and
the new offers given by the company.
11) The retailers are not provided any credit on the purchase of the drinks in the
case of both companies.
12) Advertisements for every drink are given individually, because of that the
consumers are not aware of the total drinks offered by the company and the
expenses will more for the company.
SGUUESTIONS

1) The company has to increase its quality more and also has to introduce more
verities of drinks in to the market to increase its market share.
2) It has to change the advertisements in a manner that add the soft drinks as a
part of food.
3) The Pepsi has some more scope to increase its market share and it has to
strive for that.
4) Company has to concentrate on the fruit based drinks and add some more fruit
based drinks to the product line.
5) The Pepsi Company has to increase the No. of Visi Coolers in the market.
6) The retailers are using the Pepsi Visi Coolers for other drinks also, they have
to control that. For that purpose the company has to recruit some people.
7) Pepsi Company has to increase the trading offers to the retailers.
8) The dealers should provide the sufficient information to the retailers about the
products and the new offers to the retailers provided by the company.
9) The dealers should be provided the credit up to some limits by the company.
10) The Advertisement should be given as a whole, that will bring the awareness
about the products and reduce the advertisement cost of the company also.
CONCLUSION

The project was a great experience for me in order to study the marketing
aspects in the world. It was a great opportunity for me to express what I have studied.

This industry is a place where two major players are there in the world. This
Pepsi Company gave me lot of opportunity and scope to understand the soft drink
industry and its marketing structure and distribution channels.

Lot of voluble information regarding the company and also the retailers, has
been collected from the survey, which helped me clearly to understand the real
problems faced by the marketers to distribute and also make retailers to sell the
company’s products in the market. I understood who difficult to do the marketing in
the present scenario.

The suggestions made to the company were really applicable for the growth
and benefit for the company in order to increase its market share and to become the
market leader in the soft drink industry, because a large number of competitors
craving for the same market.

Thus, finally it can be said that the industry needs a lot of channel
management activities to done along with various promotional strategies for the
customers. I wish the company to achieve its objectives achieved soon.
BIBILOGRAPHY

S.No Author Title Publisher Volume


Year

1. Philip kotler Marketing Prentice, 12th


2005

Management Hall of India

2. VS Ram Swami Marketing Mac Millan 3th


2005

Management

3. Joel R. Evans Marketing Biztantra 8th


2005

Berry Berman

4. Chunawalla S.A Advertising Hall of India 12th


2005

Web Sites Referred:

WWW.Pepsi.com

WWW.marketingteachers.com

WWW.coke.com
QUESTIONNAIRE

Name of the Student: Date of


Survey:

College & Town:

1. "I feel brands should engage with their customers by Pepsi and Coke"
Pepsi Coke
Strongly Agree
Agree
Disagree
Strongly Disagree

2. "I have a much better impression customer service"


Pepsi Coke
Strongly Agree
Agree
Disagree
Strongly Disagree

3. "I am interested in receiving special offers and coupons from "


Pepsi Coke
Strongly Agree
Agree
Disagree
Strongly Disagree

4. "If a company uses new technology , it would affect my overall perception of


their brand"
Pepsi Coke
Strongly Agree
Agree
Disagree
Strongly Disagree

5. "I would recommend a company's product or service based on their quality"


Pepsi Coke
Strongly Agree
Agree
Disagree
Strongly Disagree

6. "I would be more willing to purchase a product from a company "


Pepsi Coke
Strongly Agree
Agree
Disagree
Strongly Disagree
7. How many products of pepsi or coke do you know?
Pepsi Coke
One
Two
Three
More
None

8. How you know about?


Pepsi Coke
News paper
Radio
TV ads
Friends
Sales man or distributor

9. What is your age range?


<18
19-24
25-34
35-44
45-54
55-64
65+

10. What is your gender?


Female
Male