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SESSION 2014-2015
This is to certify that Mr. Sumit Yadav student of BBA-V Sem. in our institute has
successfully completed his/her project wor entitled !"omparative study #etween
$epsi % "oe& for the partial fulfillment of the de'ree of Bachelor of Business
Administration for the session ()*+-*,.
-r. .achna Sa/ena 0ame of $roject 1uide
234-5 BBA % B."om $ro'ram6

7e would lie to than //////////l5 8nvertis for his ind support. 4ur special thans to Ms
///////// my project 'uide for his invalua#le 'uidance throu'hout my project wor and
endeavor period has provided me with the re9uisite motivation to complete my project
8 specially appreciate the help and 'uidance of all those teachers who have directly or indirectly
helped me main' my project a success.

Maretin' is too important to #e left to the maretin' department. -avid $acard of 3ewlett
$aced. The 8ndian maret is 'ettin' to #e consumer-led. This is the reason #ehind the
unprecedented #oom in advertisin'. Below the line maretin' activities5 fast distri#ution system
and more sophisticated consumer research.
4n the media front5 satellite proliferation has tri''ed of a new 'enre of media research5 which is
hi'hly viewer ship #ased. "onsumer satisfaction has #ecome research worthily Multinationals
are pourin' in precisely #ecause of this new chapter in 8ndian consumerism.
The dilemma that all mareters are facin' is 'ettin' the ma/imum done in the minimum possi#le
time. And with #rand loyalty #ecomin' a thin' of the past5 'iven the choice availa#le to the
consumer pull. The consumer could #e a purchaser of end products5 or a financial investor5 or
even an industrial purchaser. :verywhere5 there is a new thrust on maretin' and advertisin'.
The hyper activity in the maret place is seein' a #oom in support services5 with a num#er of
independent a'encies mushroomin' to provide them. "o-related to the maret #oo5 services are
well on their to #ecomin' a major industry.
The creative leap is increasin'ly #ein' 'overned #y maret realities and consumer research. And
"lint interface is no lon'er limited to the "lint service people5 #ut includin' all specialists in
The entry multinational products in to the country are seein' more emphasis aid world- class
9uality. This alon' with the loosenin' of re'ulations is seein' e/port 'ainin' 'round. ;rom
thinin' alon' the lines of merely e/portin' spares and raw material the e/porters and now
looin' towards finished products. A multiplier to this is the joint venture companies looin' at
#ecomin' e/port manufacturin' #ases.
This project is an e/tensive research on the maretin' strate'ies of the two "ola 'iants $epsi and
"oca "ola. 8t covers an e/tensive survey and depicts all 'raphs5 fact and fi'ures of
two companies. 8t #e'ins with the introduction of soft drin industry and introduction
of these two companies of soft drin industry. 8t covers some of the major strate'ies
adopted #y $epsi and "oca-"ola lie their pricin' policy5 sales promotion and
advertisin' policy5 distri#ution policy etc. The project has #een made interestin' with
the inclusion of the topics5 which covers the +$<s of maretin'.
The major players in the soft drin industry in 8ndia are "oe and $epsi. $epsi holds the major
maret share followed #y "oe. They have a cut throat competition #etween
themselves. 7hatever strate'y is followed #y one company5 it is copied #y the other.
Sample of to #rands were selected on the #asis of there uses and noticecia#ility.
4ne of the selected #rands is 04* #rand in their respective product cate'ories the other one
#rand is close competitor of the 0o * #rands. Total sample of si=e of ()) respondents
selected on the #asic of convenience was surveyed which include consumers.
-ata was collected from secondary as well as primary sources. Structure 9uestionnaire was use
to collect primary data
i . exe
To study the overview of $epsi % "oco "ola "ompany
To now and compare the merchandisin' $epsi and "oe in retail outlets
To identify the retailers opinions towards $epsi $roducts when compare to coe products
To offer some findin' and su''ession to the company for the improvement of its performance
Research Methodology
.esearch -esi'n > - -escriptive
Samplin' -esi'n > - "onvenient Samplin'
Sample si=e > - ,).espondents
Area of study > Bareilly s
The study is #ased on $rimary data and the survey method has #een used for
collectin' primary data throu'h 9uestionnaire
;undamental to the success of any formal maretin' research project is sound
research methodolo'y. A research desi'n purely and simply the framewor or plan
for a study that 'uides the collection and analysis of the data.
Method of Data Collection
The research was conducted usin' primary as a source of information and
the method adopted was ?surveyin'?. Survey is the most commonly used of primary
data collection in maret research. This widely used of its e/treme fle/i#ility.
Survey research is a systematic 'atherin' of data from respondents throu'h
9uestionnaires. The purpose research is to facilitate understandin' or ena#le
prediction of some aspects of #ehaviors of the population #ein' surveyed. A
9uestionnaire is a formal list of 9uestions to #e answered in the survey.
The 9uestionnaire formed contained direct 9uestion5 which were #oth
open-ended and close-ended. Amon' close-ended 9uestion5 a'ain #oth
dichotomous and multiple choice 9uestions were used.
The 9uestions were framed eepin' the o#jective of research in mind and in such a
way that they are a#le to e/tract the re9uired information from the respondents.
4#servation method was also used. 8n it5 the factors around the respondents were
eenly o#served e.'. space5 potential for e/pansion etc. They were noted down as
?comments? which proved very useful while analy=in' the data.
The tas of data collection #e'ins after a research pro#lem has #een defined and
research desi'n is chaled out. 7hile decidin' a#out the method of data.
"ollection to #e used for the study@ the researchers should eep in mind two types
of data i.e. $rimary and Secondary data.
The primary data are those which are collected afresh and for the first time5 and
thus happen to #e ori'inal in character. The secondary data on other hand are those
which have already #een collected #y someone else and which have already #een
passed throu'h the statistical process. The data used for the present research is
primary data.
-ata collection was done throu'h sample5 survey method involvin' the
9uestionnaire to #e filled in #y the investi'ator. This was chosen #ecause most of
the facts and data where of the nature of primary data
;or study lie this time framewor is not si'nificant. 7e had #een close to the data
o#tainin' throu'h 9uestionnaire and percenta'e as well as trend analysis have used
to interpret the data.

8n the modern ur#an culture consumption of soft drins particularly amon' youn'er 'eneration
has #ecome very popular. Soft drins in various flavors and tastes are widely patroni=ed #y
ur#ane population at various occasions lie dinner parties5 marria'es5 social 'et to'ether5
#irthday cali#ration etc. children of all a'es and 'roups are especially attracted #y the mere
mention of the word soft drins.
7ith the 'rowin' popularity of soft drins5 the technolo'y of its production5 preservation5
transportation and or maretin' in the recent years has witnessed phenomenal chan'es.
The so-called competition for this product in the maret is from different other #rands. Mass
media5 particularly the emer'ence of television5 has contri#ute to a lar'e e/tent of the ever
'rowin' demand for soft drins the attractive jin'les and sport mae the lar'e audience
remem#er this product at all times.
8t is e/pected that with the sort of mass advertisin'5 reachin' almost the entire country and
offerin' various varieties annual demand for the product is e/pected to rise sharply in the times
to come.
8n any maretin' situation5 the #ehavioral / environmental varia#les relatin' to consumers5
competition and environment are constantly influ/. The competitors in a 'iven industry may #e
main' many tactical maneuvers in maret all the time. The may introduce or initiate an
a''ressive promotion campai'n or announce a price reduction. The maretin' man of the firm
has to meet all these maneuver and care of competitive position of his firm and his #rand in the
maret. The only route open to him for achievin' this is the manipulation of his maretin'
8n today<s hi'hly competitive maret place5 three players have dominated the industry@ The
0ew Yor #ased $epsi "ompany 8nc. The Atlanta #ased coca- cola and A.B. #ased "ad#ury
Throu'h the 'lo#e5 these major players have #een #attlin' it out for a #i''er chun of the ever C
'rowin' soft drin maret. 0ow this #attle has #een evolved up to 8ndia too with the arrival of
these three 'iants.
Soft drin industry is on ama=in' 'rowth@ ultimately these are only one person who will
determine their fortunes. The 8ndian consumer the real
7ar to 9uench his thirst has just #e'un.

8t all #e'an in *DDE5 when a tree le''ed #rass ettle in 3ohn Styth pem#erton<s #acyard in
Atlanta was #rewin' the first $ of maretin' le'eent Anaware the pharmacist has 'iven #irth to a
caramel colored syrup5 which is now the chief in'redient of the world<s favorite drin. The syrup
com#ined with car#onated the soft drin maret. 8t is estimated that this drin is served more
than one thousand million times in a day.
:9ually o#livious to the historic value of his actions was ;ran 8/. .o#inson5 his partner and
#oo eeper. $em#erton % .o#inson laid the first foundation of this #evera'e when an avera'e
nine drins per day to #e'in with5 uppin' volumes as sales 'rew.
8n *DF+5 this #evera'e 'ot into #ottle5 courtesy a candy merchant from Mississippi. By the *F,)<s
"olas was a daily consumption item5 stored in house hold frid'es. Soon were #orn other non-
cola variants of this product lie oran'e % Gemon.
0ow5 the soft drin industry has #een dominated #y three major player C 2*6 The 0ew Yor
#ased $epsi co. 8nc.2(6 The Atlanta #ased coca cola co. 2H6 The united Bin'dom #ased "ad#ury
Thou'h out the 'love these major players have #een #attlin' it. 4ut for a #i''er chun of the
ever-'rowin' cold drin maret. 0ow this #attle has #e'un in 8ndia too. 8ndia is now the part of
cold drin war. 1one are days of .amesh "hauhan5 8ndia<s one time cola in' and his #outs of
pistol shootin'. :/pect now to hear the #oon of cannons when the "oca "ola % $epsi co. #attles
it out for5 as the Iordon 'oes a #i''er share of throat. By #uyin'
4ver local competition5 the two American "ola 'iants have cleared up the arena and are pacin'
all their power #ehind #uildin' the 8ndian franchisee of their 'lo#e 'irdlin' #rands. The hu'e
amount invested in fracture has never #een seen #efore. Both players seen an enormous potential
in his country where swi''in' a car#onated #evera'e is still considered a treat5 virtually a lu/ury.
"onse9uently5 #y world standards 8ndia<s per capita consumption of cold drins as 'oin' #y
survey results is roc #ottom5 less than over 0ei'h#ors $aistan % Ban'ladesh5 where it is four
times as much.
Behind the hype5 in an effort invisi#le to consumer $epsi pumps in .s H))) crores 2*FF+6 to add
muscle to its infrastructure in #ottlin' and distri#ution. This is apart from money that company<s
franchised #ottles spend in up'radin' their plants all this has contri#uted to su#stantial 'ains in
the maret. 8n colas5 $epsi is already maret leader and in certain cities lie Banaras5 $epsi
outlets are on one side % all the other colas put to'ether on the other. 7hile coe e/ecutive
scruff at $epsi<s claims as well as tar'ets5 industry o#servers are of the view that $epsi has
definitely stolen a march over its competitor coe.
Apart from num#ers5 $epsi has made 9ualitative 'ains. The foremost is its ima'e. This ima'e
turnaround is no small achievements5 considerin' that since it was esta#lished in *FDF5 tain' the
hardship route prior to li#erali=ation and wei'hed down #y e/port commitments.
0ow5 at present as there are three major players coe5 $epsi and "ad#ury and there is stiff
competition #etween first two5 #oth $epsi and coe have started5 sponsorin' local events and
sta'in' fre9uent consumer promotion campai'ns. As the me'a event of this century has started5
and the mareters are usin' this event C world cup foot#all5 cricet events and many more other
Gie $epsi5 coe is picin' up e9uity in its #ottles to 'uarantee their financial support@ one side
coe is tryin' to increase its popularity throu'h.
:at ;ood5 enjoy ;ood. -rin only coca cola. :at cricet5 sleep cricet. -rin only coca cola. :at
movies5 sleep movies. -rin only coca cola.

4n the other side of coin $epsi has introduced AM8TAB3 BA"33A0 for capturin' the lemon
maret throu'h M8.80-A C Gemon with !=or a jhata dhere se la'e&.
But no dou#t< that AB #ased "ad#ury is also reco'ni=in' its presence. So there is a real crush in
the soft drin maret. with launch of the car#onated or'ani=e drin "rush5 few year a'o in
Banaras .5 the first in a series of a launches 5 "ad#ury Schweppes #evera'e 8ndia 2"SB86 3AS
$GA00:->- The world third lar'est soft drin mareters all over the country."SB8 o wholly
owned su#sidiary of the Gondon #ased J E.,(#illion. "ad#ury Schweppes is hopin' that crush is
'oin' well and well not suffer the same fate as the .s. *K, crore "ad#ury 8ndia<s apple drin
Apella. "SB8 is now with oran'e 2crush65 and Schweppes soda in the maret.

As oran'e drins are the smallest of non-cola cate'ories that is .s. **)) crore marets with *)L
maret share and cola heavin' ,)L is followed #y Gemon se'ment with (,L. The success of
soft drin industry depends upon + major factors vi=.
Availa#ility means the presence of a particular #rand at any outlet. 8f a product is now availa#le
at any outlet and the competitor #rand is availa#le5 the consumer will 'o for it #ecause
'enerally the consumption of any soft drin is an impulse decision and not predetermined one.
Visi#ility is the presence felt5 if any outlet has a particular #rand of soft drin say- $epsi cola
and this #rand is not displayed in the outlet5 then its availa#ility is of no use. The soft drin
must #e shown off properly and attractively so as to catch the attention of the consumer
immediately $epsi achieves visi#ility #y providin' 'low si'n#oards5 hoardin'5 calendars etc. to
the outlets. 8t also includes various stands to display $epsi and other flavors of the company.
As the soft drins are consumed chilled so coolin' them plays a vital role in #oostin' up the
sales. The #rand5 which is availa#le chilled5 'ets more sales then the one which is not5 even if it
is more preferred one.
This is the last #ut not the least factor5 which affects the sale of the products of a particular
.an'e availa#ility means the availa#ility of all flavors in all si=es.
Ion Styth $em#erton first introduced the refreshin' taste of "oca-"ola in Atlanta5 1eor'ia it was
May *DE* when the pharmacist concocted caramel colored syrup in threeCle''ed #rass ettle in
his #acyard. 3e first distri#uted the new product #y carryin' "oca-"ola in a ju' coin enjoys in a
'lass of "oca-"ola at the soda fountain. 7hether #y desi'n or accident5 car#onated water was
teamed with the new syrup5 producin' a drin that was proclaimed !-elicious and .efreshin'&.
-r. $em#erton<s $artner and #ooeeper5 Mr. ;ran .o#inson5 su''ested the name and
penned as !"oca-"ola& in the uni9ue flowin' script that is still famous worldwide today.
-r. $em#erton<s sold (, 'allons of syrup5 shipped in #ri'ht .ed wooden e's. .ed has
#een a distinctive color associated with the 0o.* soft drin #rand ever since. ;or his efforts5 -r.
$em#erton 'rossed J ,) and spent J KH.FE on advertisin'5 #y *DF*5 Atlanta chemist as a
1."anler had ac9uired complete ownership of the "oca-"ola #usiness.
3e purchases it from the -r.$em#erton family for J (H)). 7ith in + year his merchandisin' flair
helped to e/pand the consumption of "oca-"ola to over J(, million.
.o#ert 7. woodruff #ecome the president of the "oca-"ola company in *F(H and his more than
si/ decades of leadership too the #usiness of commercial success main' "oca-"ola an
institution the world over. "oca-"ola #e'ins as a never tonic5 #ut candy merchant Ioseph A.
Biedenharn of Mississippi was looin' for awry to serve refreshin' #evera'es. 3e responded to
this demand #e'an offerin' #ottle "oca-"ola usin' syrup shipped from Atlanta5 durin' a hot
summer in *DF+.
*DF+ M A modest start for a #old idea
8n a candy store in Vics#ur'5 Mississippi5 #ris sales of the new fountain #evera'e called "oca-
"ola impressed the store?s owner5 Ioseph A. Biedenharn. 3e #e'an #ottlin' "oca-"ola to sell5
usin' a common 'lass #ottle called a 3utchinson.
Biedenharn sent a case to Asa 1ri''s "andler5 who owned the "ompany. "andler thaned him
#ut too no action. 4ne of his nephews already had ur'ed that "oca-"ola #e #ottled5 #ut "andler
focused on fountain sales.
*DFF M The first #ottlin' a'reement
Two youn' attorneys from "hattanoo'a5 Tennessee #elieved they could #uild a #usiness around
#ottlin' "oca-"ola. 8n a meetin' with "andler5 Benjamin ;. Thomas and Ioseph B. 7hitehead
o#tained e/clusive ri'hts to #ottle "oca-"ola across most of the Anited States 2specifically
e/cludin' Vics#ur'6 -- for the sum of one dollar. A third "hattanoo'a lawyer5 Iohn T. Gupton5
soon joined their venture.
*F))-*F)F M .apid 'rowth
the three pioneer #ottlers divided the country into territories and sold #ottlin' ri'hts to local
entrepreneurs. Their efforts were #oosted #y major pro'ress in #ottlin' technolo'y5 which
improved efficiency and product 9uality. By *F)F5 nearly +)) "oca-"ola #ottlin' plants were
operatin'5 most of them family-owned #usinesses. Some were open only durin' hot-weather
months when demand was hi'h.
*F()s M Bottlin' overtaes fountain sales
as the *F()s dawned5 more than *5))) "oca-"ola #ottlers were operatin' in the A.S. Their ideas
and =eal fueled steady 'rowth. Si/-#ottle cartons were a hu'e hit after their *F(H introduction. A
few years later5 open-top metal coolers #ecame the forerunners of automated vendin' machines.
By the end of the *F()s5 #ottle sales of "oca-"ola e/ceeded fountain sales.
*F()s and H)s M 8nternational e/pansion
Ged #y lon'time "ompany leader .o#ert 7. 7oodruff5 chief e/ecutive officer and chairman of
the Board5 the "ompany #e'an a major push to esta#lish #ottlin' operations outside the A.S.
$lants were opened in ;rance5 1uatemala5 3onduras5 Me/ico5 Bel'ium5 8taly5 $eru5 Spain5
Australia and South Africa. By the time 7orld 7ar 88 #e'an5 "oca-"ola was #ein' #ottled in ++
*F+)s M $ost-war 'rowth
-urin' the war5 E+ #ottlin' plants were set up around the world to supply the troops. This
followed an ur'ent re9uest for #ottlin' e9uipment and materials from 1eneral :isenhower?s #ase
in 0orth Africa. Many of these war-time plants were later converted to civilian use5 permanently
enlar'in' the #ottlin' system and acceleratin' the 'rowth of the "ompany?s worldwide #usiness.
*FE)s M 0ew #rands introduced
;ollowin' ;antaN in the *F,)s5 SpriteN5 Minute MaidN5 ;rescaN and TaBN joined #rand "oca-
"ola in the *FE)s. Mr. $i##N and Mello YelloN was added in the *FK)s. The *FD)s #rou'ht diet
"oeN and "herry "oeN5 followed #y $47:.A-:N and -ASA08N in the *FF)s. Today
hundreds of other #rands are offered to meet consumer preferences in local marets around the
*FK)s and D)s M "onsolidation to serve customers
As technolo'y led to a 'lo#al economy5 the retailers who sold "oca-"ola mer'ed and evolved
into international me'a-chains. Such customers re9uired a new approach. 8n response5 many
small and medium-si=e #ottlers consolidated to #etter serve 'iant international customers. The
"ompany encoura'ed and invested in a num#er of #ottler consolidations to assure that its lar'est
#ottlin' partners would have capacity to lead the system in worin' with 'lo#al retailers.
*FF)s M 0ew and 'rowin' marets
$olitical and economic chan'es opened vast marets that were closed or underdeveloped for
decades. After the fall of the Berlin 7all5 the "ompany invested heavily to #uild plants in
:astern :urope. And as the century closed5 more than J*., #illion was committed to new #ottlin'
facilities in Africa.
(*st "entury M
The "oca-"ola #ottlin' system 'rew up with roots deeply planted in local communities. This
herita'e serves the "ompany well today as people see #rands that honor local identity and the
distinctiveness of local marets. As was true a century a'o5 stron' locally #ased relationships
#etween "oca-"ola #ottlers5 customers and communities are the foundation on which the entire
#usiness 'rows.
Beepin' in view of tappin' the 8ndian soft drin maret and also developin' soft drins as a
drinin' product amon' 8ndians. The "oca-"ola in 8ndia has setup an independent or'ani=ations
which is 3."." % B."." with a capital of H,) A.S.J each #y virtue of sellout decision of the
passed mana'in' director Sh. S. ". A''arwal.
3industan "oca-"ola #ottlin' 20-76 $vt. Gtd. 0aji#a#ad too the complete possession of this
plant5 land5 machinery5 % intellectuals on ;e#ruary *+< *FFD and since then 3."."5 looin' after
all its affairs under company owned #ottlin' plant to esta#lish inte'rated maretin' system in the

"oca-"ola> -eveloped in a #rass pot in *DDE5 coca-cola is the most reco'ni=ed and admired
trademar around the 'lo#e. 0ot to mention the #est sellin' soft
drin in the world.

Sprite> 8n *FE*5 a citrus-flavored drin made its A.S de#ut5 usin' !Sprite Boy !as
inspiration for its name. This elf with silver hair and a #i' smile was used in *F+)s
advertisin' for "oca-"ola. Sprite is now the fastest 'rowin' major soft drin in A.S and the
world<s most popular lemon-lime soft drin.
;anta > The name !fanta ! was first re'istered as a trademar in 1ermany in *F+* 5when it was
used for a few year for a soft drin created from availa#le materials and flavors . The name
was then revived in *F,, in 0aples5 8taly5 when it was used for the>& fanta !oran'e drin we
now today. 8t is now the trademar name for a line of flavored drins around the world.
-iet coe> The e/tension of the coca-cola name #e'an in *FD( with the introduction of diet
coe 2also called coca-cola li'ht in some countries6. -iet coe 9uicly #ecomes the num#er C
one sellin' low Ccalorie soft drin in the world.
*. The world<s lar'est spherical coca-cola si'n is in 0a'oya5 Iapan a top the dial C 0a'oya
#uildin' in front of the 0a'oya railway station. The sin' is a dou#le sphere constructed
from more then +E tone of steel5 more F+)meter of neon tu#in'5 and more then5 DKF
li'ht #ul#s. The outer shape features the coca-cola lo'o and contour #ottle5 while the
inner sphere portrays a comic scene with twinlin' planets and stars.
(. 4ne of the world<s lar'est si'ns for coca-cola is located on a hill called !:G3A"3A& in
America5 "hile. 8t is +)) feet wide and *H* feet hi'h and is made from K)5)))5 (E
ounce #ottles.
H. The first out door paint si'n advertisin' coca-cola still e/ists. 8t was painted in *DF+ in
"artersville5 1eor'ia.
+. "oca-cola is one of the world<s most reco'ni=a#le trademars reco'ni=ed in countries
that account for FD percent of the world<s population.
,. 8f all the coca-cola ever produced were in D- ounce #ottles. And these #ottles were
distri#uted to each person in the world. There would #e EKD #ottles or over +( 'allons
for each person.
E. 8f all the coca-cola ever produced were in D C ounce #ottles5 placed side #y side and end
to end to from a lane hi'hway5 it would wrap around the earth D( times.
K. 8f all the coca-cola ever produced were flowin' over 0ia'ara fall at its normal rate of
*), million 'allons per second instead of water5 the falls would flow for a#out a day
and a half HD hours and +E minutes.
D. The lar'est representation of the world<s #est nown paca'e *)) foot tall 'lass contour
#ottle is located at world of coca-cola5 GAS V:1AS

Coca-cola in India
"oca-"ola5 the corporation nourishin' the 'lo#al community with the world<s lar'est sellin' soft
drin concentrates since *DDE5 returned to 8ndia in *FFH after a *E year hiatus5 'ivin' new
thum#s up to the 8ndian soft drin maret. 8n the same year5 the "ompany too over ownership
of the nation<s top soft-drin #rand and #ottlin' networ. 8t<s no wonderin' our #rands assumed
an iconic status in minds of world<s consumers.
A Healthy Growth to the Indian Economy
:ver since5 "oca-"ola 8ndia has made si'nificant investments to #uild and continually
consolidate its #usiness in the country5 includin' new production facilities5 waste water treatment
plants5 distri#ution systems5 and maretin' channels.
"oca-"ola 8ndia is amon' the country<s top international investors5 havin' invested more than
ASJ * #illion in 8ndia in the first decade5 and further pled'ed another ASJ*)) million in ())H
for its operations.
A Pure Commitment to the Indian Economy
The "ompany has shaen up the 8ndian car#onated drins maret 'reatly5 'ivin' consumers the
pleasure of world-class drins to fill up their hydration5 refreshment5 and nutrition needs. 8t has
also #een instrumental in 'ivin' an e/ponential 'rowth to the country<s jo# listin's.
Creating Enormous 1ob Opportunities
7ith virtually all the 'oods and services re9uired to produce and maret "oca-"ola #ein' made
in 8ndia5 the #usiness system of the "ompany directly employs appro/imately E5))) people5 and
indirectly creates employment for more than *(,5))) people in related industries throu'h its vast
procurement5 supply5 and distri#ution system.
The 8ndian operations comprises of ,) #ottlin' operations5 (, owned #y the "ompany5 with
another (, #ein' owned #y franchisees. That apart5 a networ of (* contract pacers
manufactures a ran'e of products for the "ompany.
4n the distri#ution front5 *)-tonne trucs C open #ay three-wheelers that can navi'ate the narrow
alleyways of 8ndian cities C constantly eep our #rands availa#le in every noo and corner of the
country<s remotest areas.
These are only some of the facts that spea a#out our commitment to the 'rowth of the 8ndian
The coca-cola company e/ists to #enefits and refreshes every one it touches. The #asic
proposition of our #usiness is simple5 solid and timeless. 7hen we #rin' refreshment5 value5 joy
and fun to our staeholders then we successfully nurture and protect our #rand5 particularly coca-
cola. That is the ey to fulfillin' our ultimate o#li'ation to provide consistently attractive to the
owner so four #usiness.
More then a #illion times every day5 thirsty people around the world reach for coca-cola products
for refreshment. They deserve the hi'hest
Ouality C every time. 4ur promise to deliver that 9uality is the most important promise we mae.
and it involves a world-wide 5 yet distinctively local 5 networ of #ottlin' partner 5 supplier 5
distri#utor and retailers whose success is paramount to our own. 4ur investment in local
communities in over ()) countries totals #illions of dollars in jo#s5 facilities5 maretin'5 the
purchase of local 'ood and services5 and local #usiness partnership. Always and every where 5
we pursue continuous innovation in the products we offer the processes we use to mae them5
the paca'e we develop and the way we #rin' them to maret .

14G- S$4T> this oran'e car#onate soft drin was introduced in the early *F,)c5 and ac9uired
#y the "oca-"ola company in *FFH5 its tan'y taste has #een popular with 8ndian teena'ers
G8M"A> 8t is thirst-9uenchin' #evera'e features a fresh and li'ht lemon-lime taste and
li'hthearted attitude. The limca #rand was introduced in *FK* and ac9uired #y the coca-cola
company in *FFH.
MAAPA> Maa=a5 launched in *FD+ and ac9uired #y the coca-cola company in *FFH5 is a non
car#onated man'o soft drin with a rich5 juice % natural man'o taste.

T3AM$S A$> in *FFH5 the "oca-"ola company ac9uired this #rand5 which was ori'inally
introduced in *FKK. 8ts stron' and fi==y taste maes it uni9ue car#onated 8ndian cola.

$epsi"o is one the lar'est companies in the A.S. 8t fi'ures amon'st the lar'est *, companies
worldwide accordin' to the num#er of employees hired. 8t has a A.S. ;ortune ran of ,).The
company profits for *FFK were J(.*+ #illion on revenues of J().F( #illion and $epsi is #ottled in
nearly *F) countries. $epsi"o is a world leader in convenient snacs5 foods and #evera'es with
revenues of more than J+H #illion and over *FD5))) employees. Tae a journey throu'h our past
and see the ey milestones that define $epsi"o.
$epsi"o is a world leader in the food chain #usiness. 8t consists of many companies amon'st
which the prominent once are $epsi-"ola5 ;rito-Gay and $epsi ;ood 8nternational. The 'roup is
presently into two of the most profita#le and profita#le and 'rowin' industries namely5 #evera'es
and snac foods. 8t has scores of #i' #rands availa#le in nearly *,) countries across the 'lo#e.
The 'roup has esta#lished for itself once of the stron'est #rands in various se'ments of its
The #evera'es se'ment primarily marets its $epsi5 -iet $epsi5 Mountain -ew and other #rands
worldwide and K-A$ outside the A.S. marets. These are positioned in close competition with
"oca-"ola 8nc. of ASA. A point which is worth a mention is that "oca-"ola 'ets D)L of its
profits for 8nternational operations while the same fi'ure for $epsi"o stands at EL. The se'ment
is also in the #ottlin' plants and distri#ution facilities and also distri#utes the ready to drin tea
products of Gipton in 0orth America. 8n a joint venture with orient spray juice products $epsi"o
also manufactures and distri#utes fruit juices.
The snac food division manufactures and distri#utes and marets chips and other snacs
worldwide. The international operations of this se'ment e/tend to the marets of Me/ico5 the
AB and "anada. ;rito-Gay represents this se'ment of $epsi"o.
The restaurant se'ment earlier primarily consists of the operations of the worldwide $i==a 3ut5
Taco Bell and B;" chains. $;S. $epsi company<s restaurant distri#ution operation5 supplies
company owned and franchise restaurants in the A.S. The company ventured into restaurant
#usiness with Taco Bell5 B;"5 $i==a 3ut ended last year when they were spanned off from the
company. A paca'ed 'oods company comprised of $epsi-"ola "ompany and ;rito-Gay will
continue to #ear the $epsi"o name. The move should enhance #oth corporations a#ility to
prosper with their own fully dedicated structure and mana'ement team.
$epsi"o 'ained entry to 8ndia in *FDD #y creatin' a joint venture with the $unja# 'overnment-
owned $unja# A'ro 8ndustrial "orporation 2$A8"6 and Voltas 8ndia Gimited. This joint venture
mareted and sold Gehar $epsi until *FF*5 when the use of forei'n #rands was allowed@ $epsi"o
#ou'ht out its partners and ended the joint venture in *FF+. 4thers claim that firstly $epsi was
#anned from import in 8ndia5 in *FK)5 for havin' refused to release the list of its in'redients and
in *FFH5 the #an was lifted5 with $epsi arrivin' on the maret shortly afterwards. These
controversies are a reminder of Q8ndia?s sometimes acrimonious relationship with hu'e
multinational companies.Q 8ndeed5 some ar'ue that $epsi"o and The "oca-"ola "ompany have
Q#een major tar'ets in part #ecause they are well-nown forei'n companies that draw plenty of
8n ())H5 the "entre for Science and :nvironment 2"S:65 a non-'overnmental or'ani=ation in
0ew -elhi5 said aerated waters produced #y soft drins manufacturers in 8ndia5 includin'
multinational 'iants $epsi"o and The "oca-"ola "ompany5 contained to/ins5 includin' lindane5
--T5 malathion and chlorpyrifos R pesticides that can contri#ute to cancer5 a #readown of the
immune system and cause #irth defects. Tested products included "oe5 $epsi5 K Ap5 Miranda5
;anta5 Thumps Ap5 Gimca5 and Sprite. "S: found that the 8ndian-produced $epsi?s soft drin
products had HE times the level of pesticide residues permitted under :uropean Anion
re'ulations@ "oca "ola?s H) times. "S: said it had tested the same products in the AS and found
no such residues. 3owever5 this was the :uropean standard for water5 not for other drins. 0o
law #ans the presence of pesticides in drins in 8ndia.
The "oca-"ola "ompany and $epsi"o an'rily denied alle'ations that their products
manufactured in 8ndia contained to/in levels far a#ove the norms permitted in the developed
world. But an 8ndian parliamentary committee5 in ())+5 #aced up "S:?s findin's and a
'overnment-appointed committee5 is now tryin' to develop the world?s first pesticides standards
for soft drins. "oe and $epsi"o opposed the move5 ar'uin' that la# tests aren?t relia#le enou'h
to detect minute traces of pesticides in comple/ drins.
As of ()),5 The "oca-"ola "ompany and $epsi"o to'ether hold F,L maret share of soft-drin
sales in 8ndia. $epsi"o has also #een accused #y the $uthussery panchayat in the $alaad
district in Berala5 8ndia5 of practicin' Qwater piracyQ due to its role in e/ploitation of 'round
water resources resultin' in scarcity of drinin' water for the panchayat residents5 who have
#een pressurin' the 'overnment to close down the $epsi"o unit in the villa'e.
8n ())E5 the "S: a'ain found that soda drins5 includin' #oth $epsi and "oca-"ola5 had hi'h
levels of pesticides in their drins. Both $epsi"o and The "oca-"ola "ompany maintain that
their drins are safe for consumption and have pu#lished newspaper advertisements that say
pesticide levels in their products are less than those in other foods such as tea5 fruit and dairy
products. 8n the 8ndian state of Berala5 sale and production of $epsi-"ola5 alon' with other soft
drins5 was #anned #y the state 'overnment in ())E5 #ut this was reversed #y the Berala 3i'h
"ourt merely a month later. ;ive other 8ndian states have announced partial #ans on the drins in
schools5 colle'es and hospitals
Brand Facts
$epsi"o nourishes consumers with a ran'e of products from tasty treats to healthy eats that
deliver enjoyment5 nutrition5 convenience as well as afforda#ility
The 'roup has #uilt an e/pansive #evera'e and foods #usiness. To support its operations5
$epsi"o has +( #ottlin' plants in 8ndia5 of which *H are company owned and (F are franchisee
owned. 8n addition to this5 $epsi"o<s ;rito Gay division has H state-of-the-art plants. $epsi"o<s
#usiness is #ased on its sustaina#ility vision of main' tomorrow #etter than today. $epsi"o<s
commitment to livin' #y this vision every day is visi#le in its contri#ution to the country5
consumers and farmers.
$epsi"o 8ndia<s e/pansive portfolio includes iconic refreshment #evera'es $epsi5 K A$5
0im#oo=5 Miranda and Mountain -ew5 in addition to low calorie options such as -iet $epsi5
hydratin' and nutritional #evera'es such as A9uafina drinin' water5 isotonic sports drins -
1atorade5 Tropicana*))L fruit juices5 and juice #ased
-rins C Tropicana 0ectars5 Tropicana Twister and Slice. Gocal #rands C Gehar :vervess Soda5
-ues Gemonade and Man'ola add to the diverse ran'e of #rands
$epsi"o<s food division5 ;rito-Gay5 is the leader in the #randed salty snac maret and all ;rito
Gay products are free of trans-fat and MS1. 8t manufactures Gay<s $otato "hips@ "heetos
e/truded snacs5 Ancle "hips and traditional snacs under the Burure and Gehar #rands. The
company<s hi'h fi#er #reafast cereal5 Ouaer 4ats5 and low fat and roasted snac options
enhance the healthful choices availa#le to consumers. ;rito Gay<s core products5 Gay<s5 Burure5
Ancle "hipps and "heetos are cooed in .ice Bran 4il to si'nificantly reduce saturated fats and
all of its products contain voluntary nutritional la#elin' on their pacets
$epsi"o esta#lished it?s #usiness operations in 8ndia in *FDF
8nvested more than AS- * Billion since inception
7ell nown and loved 'lo#al #rands that deli'ht and nourish consumers

8t provides direct and indirect employment to *,)5))) people in 8ndia
8t has more than +( #ottlin' plants in 8ndia5 of which *H are company owned % (F
franchisee owned
H State-of-the-art food plants in $unja#5 Maharashtra and 7est Ben'al
$epsi"o5 which rans amon' the world<s five lar'est food and #evera'e companies
with *E #rands5 and its partners have invested more than ASJ K)) million in
8ndia - #uildin' #usinesses5 which today provide direct or indirect
employment to more than E)5))) people. Since $epsi<s entry into the 8ndian
maret in *FDF5 several #rands from its portfolio have #ecome esta#lished
cate'ory leaders. Brand $epsi is now the (nd #i''est #rand in the country.
$epsi"o<s portfolio of #evera'e #rands in 8ndia includes the fla'ship cola
#rand $epsi@ -iet $epsi@ two flavors of Mirinda C 4ran'e and Gemon@ KA$@
Mountain -ew@ paca'ed drinin' water - A9uafina@ variants of the fruit
drin #rand Slice@ the *)) per cent fruit juice #rand Tropicana in several
variants and the world<s leadin' sports drin 1atorade.
Pepsi - Yeh Hai Youngistan Meri 1aan
$epsi is a hundred year old #rand loved #y over ()) million people worldwide. The lar'est sin'le
sellin' soft drin #rand in 8ndia is the u#i9uitous?socialiser?at every occasion.
Youn'istan loves it. ()) million people worldwide love it. But what has made $epsi the
sin'le lar'est sellin' soft drin #rand in 8ndia is actually a formula concocted a century
a'o in a far away continent.
*DDE5 Anited States of America. "ale# Brad man5 the man with a plan5 'ot on to
formulate a #loc#uster di'estive drin and decided to call it Brad<s drin. 8t was this
doctor<s potion that was to #ecome $epsi "ola in *DFD5 and eventually5 $epsi in *F)H.
$epsi has always played on the front foot and since its inception has come out with
revolutionary concepts lie -iet5 (G #ottles5 recycla#le plastic cola #ottles and the
envia#le My "an.
$epsi has #ecome a friend to the youth and has led many youth cultures. Youn'sters over
the 'enerations have 'rown up with $epsi and share an emotional connect with it5 unlie
any other cola #rand. Be it parties5 han'outs5 or just another day at home5 a day is never
complete without the fi== of $epsiS
$epsi5 "ricet and Bollywood have #een joined at the hip since the #e'innin'. Shah .uh
Bhan5 Sachin Tendular5 Saif Ali Bhan5 Amita#h Bachchan5 Bareena Bapoor5 $riyana
"hopra5 Virender Sehwa'5 M. S. -honi5 Iohn A#raham5 .an#ir Bapoor and -eepia
$aduone are a few cele#rities who will 'o any len'th for a chilled $epsi.
The $epsi My "an is undou#tedly the most popular cola pac of all times. 8t is not just a
pac #ut a style statement for today<s youth.

Coke Comes to India
"oca-"ola comes to 8ndia with fanfare in the fifties. ;or a num#er of days5 The 3industan Times
and other newspapers of 0ew Banaras carried full pa'e advertisement showin' a #i' #oy in
uniform with a soft-drin crown as the cap. There was no indication of the product. After a few
days5 "oe was introduced. 8t was an entirely new drin which fascinated people. 8t soon #ecame
the national drin. ;or the first time5 a soft-drin was availa#le from one corner of the country to
another. The person who #rou'ht "oca-"ola to 8ndia was the father of late Sardar "haranjit
Sin'h5 Sardar Mohan Sin'h. A practical man Mohan Sin'h reali=ed that to populari=e "oca-"ola5
and mae it a #est seller it was necessary to !catch them youn'.& So he focused on youn'sters in
the society.
The company reali=ed that to #ecome a mass consumption product5 one has to 'o to the villa'e.
They 'ave much importance to the distri#utive networ. The company trucs supplied coe to
even the remotest villa'e.
;ew products appears to #e more similar than soft drins5 yet the "ola wars that mar the
competition #etween "oe and $epsi show how even or'ani=ations with hi'hly similar product
can #e differentiated #y their #usiness strate'ies. Then comes #attles over the issue of #ottle si=e
standardi=ation. "oe the arch rival tried to offerin' more "ola at a lower price. $epsi which had
some of its early investment tied up in (,)ml #ottles5 went the fountain way. The 1eneral #ottle
si=e freed has settled at H)) ml. *)) ml more than the pre M0" standard. ;ountain mi/
dispensers5 carry home #ottles5 even *.,) plastic #ottle with caps 'ood enou'h to eep them
lyin' down and still preserve the fi==.
8t poured in vast sums to whip up its visi#ility at the retail level5 so that consumers were 'reeted
virtually at every street corner #y $epsi<s #lue5 red and white colors5 #ecause they have
perception !the thin' on display Sells more.& "oca-"ola is5 finally5 redoin' the real thin' to the
replicate the success that it<s arch-rival5 $epsi"o. 3as achieved with its fast and furious
maretin'. But to win them5 "oe is copyin' $epsi.

"oe was launched in 8ndia in A'ra5 4cto#er (+5 in ?FH?5 soon after its traditional all
8ndian launch of its "ola. At the sparin' new #ottlin' plants at 3athra5 near A'ra. "oe was
#ac with a #an' after its e/it in *FKK.
"oe was plannin' to launch in ne/t summer the oran'e drin5 ;anta-with the clear
lemon drin5 sprite5 followin' later in the year.
"oe already owns more #rands than it will over need5 since it has #ou'ht out .amesh
"hauhan. "oe just needs to ju''le these #rands around de/trously to meet its o#jectives5 to
ensure that $epsi does not 'ain maret share in t Today5 "oe?s product line includes5 "oca-
"ola5 Thumps Ap5 ;anta5 1old Spot5 Maa=a5 "itra5 Sprite5 Bisleri "lu# Soda and -iet "oe.
"oca-"ola 8ndia Gimited 2""8G6 has #ottled its "ola drin in different si=es and different
paca'in' i.e.5 ()) ml #ottle5 H)) ml. Bottle5 HH) ml. "ans5 ,)) ml. Bottle fountain $epsi5 and
#ottles of * and ( litre.
4ne important thin' must #e noticed that Thumps Ap is a stron' #rand in western and
southern 8ndia5 while "oca "ola is stron' in 0orthern and :astern 8ndia. 7ith volumes of
Thumps Ap #ein' low in the capital5 there are liely chances of "oca "ola slashin' the prices of
Thumps Ap to .s. , and continue to sell "oca "ola at the same rate. Analysts feel that this
strate'y may help "oe since it has ( "ola #rands in comparison to $epsi which has just one.
Thumps Ap accounts for +)L of "oca "ola company?s turn over5 followed #y "oca "ola
which has a (HL share and Gimca which accounts for *KL of the turn over of the company.
2Thumps up #ein' the local drin5 its share in the maret is intact5 forcin' the company to service
the #rand5 as it did last year Mr. -onald short ":45 "oca "ola 8ndia5 said that5 Q we will #e
a#solutely comforta#le if Thumps Ap is 0o. * #rand for us in 8ndia in the year ())). 7e will
sell whatever consumers want us toQ. "oca "ola 8ndia has positioned Thumps up as a #evera'e
associated with adventure #ecause of its stron' taste and also main' it compete with $epsi as
even $epsi is associated with adventure5 youth.
The price #ein' fi/ed #y industry5 leavin' very little role for the players to play in the
settin' of the price5 in turn main' it difficult for competitors to compete on the #asis of price.
The fi/ed cost structure in "ar#onated Soft -rins 8ndustry5 and the intense competition
mae it very difficult to chan'e or alter the prices. The various costs incurred #y the individual
company?s are almost unavoida#le. These #ein' the costs of concentrates5 standard #ottlin'
operations5 distri#utor and #ottlers commissions5 distri#ution e/penses and the promotional and
advertisin' e/penditure 2As far as "oe is concerned5 it had to incur a little more than $epsi as
$epsi paved its way to 8ndia in *FDF while "oe made a come #ac in *FFH.6
"urrently a H)) ml. "oe #ottle is availa#le for .s. E toD The HH) can was initially availa#le for
.s. *H and now5 since the price has 'ave up to .s. *D per can. The prices of ,)) m5 * litre. And
(ltr #ein' .s. *, .s. (H and .s. +) respectively 2accordin' to the current survey6.
-atin' #ac to TFH?5 when $epsi hied the price of $epsi - "ola from .s. , to .s. E per
(,) ml. #ottle in some parts of the country-includin' A'ra. "oe penetrated the maret with
price of .s. , for a H)) ml. #ottle5 main' it cheaper #y .s. * and ,) ml. than $epsi. "oe?s
strate'y at that time #ein' a#le to e/pand the availa#ility of soft drins even in rural 8ndia.
"oe?s priority #ein' to first increase the num#er of drins per driner5 and then the num#er of
driners itself. $epsi also tried this #ut was trapped #y a series of competitive price increase and
chan'es in #ottle si=es #y $arle. But the prices of soft drins have shot up since $epsi?s arrival
and the current prices are #ein' mentioned as under.
Price list
Name Bottle Size MRP (in Rs.)
Coke Per Bottle 200 ml 6
Coke 300 ml 10
Coke 500 ml (Plastic / Glass) 22
Coke 2 litre 60
Diet Coke (Can) 330 ml Can 35
Coke (Can) 330 ml Can 38
3owever5 the trends may have #een in the early ?F)?s5 now the prices of $epsi and
"oe are the same main' it difficult in future and present to compete on the #asis of price.
"oe may have 'ained an early advanta'e over $epsi since it too over $arle in *FF+.
3ence5 it had ready access to over (5 ))5))) retailer outlets and E) #ottlers. "oe was had a
#etter distri#ution networ5 owin' to the wide networ of $arle drins all over 8ndia. "oe has
further e/panded its distri#ution networ.
"oe and its product were availa#le in over (5 ,)5))) outlets 2in contrast with $epsi?s (5 ))5)))6.
"oe has a 'reater advanta'e in terms of 'eo'raphical covera'e.
But "oe has had pro#lems with its #ottlers as the re9uired profits for the #ottlers have
not #een forthcomin'. This is more so #ecause "oe has hied the price of its concentrate #y .s.
D ;urther5 "oe?s operations in 8ndia are *))L ;o#s. 0ow5 it plans to convert then into "4B4s.
This is strainin' the relationship #etween the "oe and its #ottlers.
The company had decided to create a fund to reim#urse performin' #ottlers for the e/tra costs
incurred on account of the hie in prices of soft drin concentrates. Mr. Short also reali=ed that
8ndia is a price sensitive maret and the company would have to a#sor# in the increase in e/cise
duty and said that in the lon' run "oe will have to slash prices for the #enefit of the consumers
and said that they were considerin' a cut in the prices of their fountain soft drins.
"oe and $epsi have devised strate'ies to 'et rid of middlemen in the distri#ution
networ. 3owever5 ,)L of the industry unfortunately depends on these middlemen. As of now5
around *)) a'ents are present in Bananas. Bottlers of the ( multinationals have stron'ly felt the
need to remove these middlemen from the distri#ution system5 #ut very little success has #een
achieved in doin' so.
8t must #e remem#ered that soft drins purchases are an Qimpulse
#uy low involvement productsQ which maes promotion and advertisin' an important maretin'
tool. The ( arch rivals have spent a lot on advertisin' and on promotional activities.
To promote a #rand and even to spend a lot on advertisin'5 the company must #e aware of
the perceived 9uality of the #rand5 its #rand power 2if at all there is6 since consumers mae
purchase decision #ased on their perceptions of value i.e.5 of 9uality relative to price.
Accordin' to $aul Sto#art5 Advertisin' encoura'es customers to reco'ni=e the 9uality the
company offers. $rice promotions often produce short-term sales increases.
"oca "ola has entered new marets and also developin' maret economics 2lie 8ndia6 with
much-needed jo#s.
"oe attri#utes its success to #ottlers5 the "oca "ola system itself5 i.e.5 its e/ecutive
committees5 employees5 B4-5 company presidents #ut a#ove all from the consumer.
"oe?s red color catches attention easily and also the -iet "oe which it introduced was
tain' the "ae5 as $epsi has not come out with this in 8ndia.
:ver since "oe?s entry in 8ndia in *FFH5 "oe made a come #ac 2after 9uittin' in *FKK65
in 4cto#er (+ in A'ra5 the city was flooded #y trucs5 there wheelers5 tricycle cards-all with hu'e
red "oe-em#la=oned um#rellas. .etailers were displayin' their "oe #ottles in distinctive
racs5 also with specially-desi'ned ice#o/es to eep "oe #ottles cold. This was one #i' jolt to
The Pepsi Process: -espite #ein' a 'lo#al #rand5 $epsi has #uilt its success on meetin' the
8ndian consumer<s needs5 particularly in terms of main' the #rand synchroni=e with locali=ed
events and traditions. 8nstead of harpin' on its 'lo#al linea'e5 er'o5 it tries to plu' into ethnic
festivals5 use the vernacular indifferent part of the country5 and #lend into the local fa#ric. $epsi
is usin' #oth national campai'ns-such as the -rin $epsi5 1et Stuff scheme5 which offers lar'e
discounts on other products to $epsi-#uyers as well as local.
The Coke Copy: 8nstead of creatin' a #ond with the customers throu'h small #ut hi'h-impact
events5 "oca-"ola chose to associate itself with national and international me'a events lie the
7orld "up "ricet5 *FFE5 and world cup foot#all *FFD. But now coe is also enterin' into local
actions. "oe is also tryin' to mae their #rand synchroni=e with locali=ed events traditions and
festivals. "oca-"ola new ta' line in this advertisement is !.eal shoppin'5 real refresher&. 8n this
way "oe is copy $epsi.
The Pepsi Process: 4nce of the stron'est weapons in $epsi<s armory is the fle/i#ility it has
empowered its people with. :very mana'er and salesperson has the authority to tae whatever
steps he5 or she5 feels will mae consumers aware of the #rand and increase its consumption.
The Coke Copy : ;le/i#ility is the weapon that "oca-"ola5 fettered as it is #y the need for
approvals from Atlanta for almost everythin'. 8n the past5 this has shown up in its stu##orn
insistence on junin' the franchisee networ it had ac9uired from $arle@ in its dependence on its
own feed#ac mechanism over that of its #ottlers@< and on its head9uarters-led approach.
The Pepsi process: $epsi has consistently wielded its pricin' strate'y as in invitation to
sample5 aimin' to turn trial into addiction.
8t launched the ,)) ml #ottle in *FF+ at .s. D versus Thumps Ap<s .s. F5 in April5 *FFE5 its *.,
liters #ottle followed "oe into the maretplace at .s. H) C .s , less than "oe<s .But it couldn<t
continue the lower price positionin' for lon'.
The Coke Copy: 8nitially5 coe car#on-copied the strate'y #y introducin' its HH)ml cans in
Ianuary *FFE5 at an invitation price of .s. *, #efore raisin' it to .s. *D. By this time5 it had
reali=ed that the "oca-"ola #rand did not hold enou'h attraction for customers to for out a
premium. The ())ml "oe5 launched so far in parts of eastern5 western5 and northern8ndia5 is
priced at .s. ,5 lowerin' the entry-#arriers. Too really drive the maret5 as "oe wants to you
must 'o down to .s. H<.





Pepsi v Coca-Cola war turns hot
The on'oin' cola war #etween 'lo#al rivals $epsi and "oca-"ola has taen a weird twist in 8ndia
with the former dra''in' the latter to court. The char'e> "oca-"ola has snatched employees5
#ottlers5 and a'ents5 all of whom are #ound to $epsi #y a contract.
$epsi has char'ed "oe with havin' entered into a conspiracy to disrupt its #usiness operations
#y inducin' ey employees and associates to #rea e/istin' contracts ille'ally.
$epsi has sou'ht a permanent injunction and an e/ parte order a'ainst coe5 restrainin' it from
tain' away $epsi?s employees and #usiness associates. $epsi has also reserved the ri'ht to see
financial dama'es from "oe at a later date if necessary.
$epsi has claimed that a do=en middle-level mana'ers and three territory mana'ers #roe their
contracts with $epsi to join "oe in recent months5 while durin' the last year and half5 seven
mana'ers 9uit $epsi to join "oca-"ola.
Iustice " M 0air of the -elhi hi'h court on April *K issued notices and summons to "oca-"ola
and *, others for May E. 3owever5 Iustice 0ayar refused to 'rant the e/ parte injunction sou'ht
#y $epsi 8ndia to stop the alle'ed inducements #y "oe in offerin' employment to $epsi?s
employees while the suit was pendin' in court.
4n #ehalf of $epsi5 Asho -esai and Arun Iaitley contended that "oca-"ola had #een Qrattled #y
the hu'e success of $epsi in 8ndia entered into a conspiracy durin' the last si/ months to cause
loss and dama'e to $epsi?s #usiness interests #y adoptin' unfair and ille'al means.Q
8t added that "oca-"ola had approached many ey mana'ers and had successfully lured a
commercial mana'er of its #ottlin' #usiness 1aurav -u''al5 and a mana'er in Surat Sailesh
Ioshi5 #esides others.
$epsi char'ed that while initially these approaches were sporadic5 over the last si/ months it is
clear that "oca-"ola has chan'ed its strate'y and has decided to consciously tar'et and approach
ey employees of $epsi at various locations in 8ndia.
The company has alle'ed that in most cases5 the employees have not #een 'iven time to adhere
to the F)-day notice period and the one-year confidentiality a'reement. The latter deal #ars
employees joinin' its rivals for at least a year.
-esai claimed "oe?s actions would directly harm the #usiness interests of $epsi5 which had
invested over JH)) million in the country in esta#lishin' #usiness infrastructure.
8n its defense5 "oe is e/pected to see relief in the 8ndian "onstitution which states that there
can #e no restriction on the movement of la#or. Besides5 any effort #y a company to restrict its
employees from joinin' other companies mi'ht fall foul of the Monopolies and .estrictive Trade
$ractices Act as an unfair trade practice.
$epsi has cited the instance of "oe snappin' up criceter Iava'al Srinath in spite of the latter
si'nin' a contract with $epsi?s sports consultant5 (*st "entury Media. 3owever5 media reports5
9uotin' sources5 said that Srinath?s contract had #een only in the ver#al sta'e.
Similarly5 $epsi has char'ed "oe with inducin' the Board of "ontrol for "ricet in 8ndia to 'ive
the sponsorship of the recently concluded $epsi Trian'ular "ricet Series to "oe5 as
acnowled'ed in the B""8 su#mission #efore the Bom#ay hi'h court5 even while a contract was
si'ned with $epsi.
$epsi has listed the case of "oe tryin' to induce its music consultant -0A 0etwors $rivate
Gtd5 which or'ani=ed the Yanni show5 to snap its ties with $epsi and join "oe.
8ncidentally5 in results announced for the first three months of the year5 $epsi has swept "oca-
"ola aside. $epsi has reported a 'rowth of (K per cent compared to "oe?s (* per cent durin' the
same period. 8n the first three months of last year5 $epsi 'rew #y *D per cent only.
"oca-"ola 8ndia chief e/ecutive -onald Short had announced that "oe would 'row #y at least
() per cent for the whole of *FFD. "oca-"ola5 alon' with the $arle #rands it ac9uired when it
came into 8ndia -- Thums Ap5 Gimca5 and 1old Spot -- continue to dominate 8ndia with a ,, per
cent maret share to $epsi?s +H per cent. But in the cola se'ment5 "oe comes a poor third after
Thumps Ap and $epsi.
The current summer season is the most important for the cola 'iants5 with consumption at its

.e'ardless of which soda you lie #etter thou'h5 $epsi seems the #etter value than "oe ri'ht
now. "oe is tradin' at a nearly () percent premium to $epsi #ased on ())( $/:s even thou'h
the two companies? earnin's 'rowth rates are nearly identical. 2$epsi?s are actually a shade
And when you loo at revenues5 the 'ap is even more dramatic. "oe is tradin' at K time<s
estimated ())( sales while $epsi is tradin' at H., times ())( revenue estimates. Both companies
are e/pected to post sli'ht declines in sales this year and an increase of a#out + percent in ())H.
-ue to this disparity in valuation5 Ieff Banter5 an analyst with $rudential Securities5 says he has a
Q#uy? ratin' on $epsi and QholdQ on "oe. $rudential does not do investment #anin'.
To #e sure5 "oe is still the maret share leader in soft drins. 4ne of the main reasons the stoc
has outperformed $epsi this year was #ecause it reported a #etter than e/pected 'ain in unit
volume in the first 9uarter. And the company has taen steps to cement its car#onated #evera'e
lead as well 'ain 'round in the #ottled water maret. 2"oe and $epsi #oth have their own #rands
of water5 -asani and A9uafina5 respectively.6
4n Tuesday5 "oe announced that it was ac9uirin' the Sea'ram?s line of mi/ers5 tonic5 'in'er ale
and selt=er from -ia'eo and per nod .ichard. And last month5 "oe entered into an a'reement
with 1roup -anone to distri#ute :vian #ottled water in 0orth America.
Some pretzels with that soda?
But while "oe relies solely on #evera'es for 'rowth5 another factor in $epsi?s favor is its
diversity. Q7hat attracts me to $epsi is 8 have more faith in their a#ility to 'row earnin's. 0ot
only are they successful on the #evera'e side #ut they are successful with salty snac foods5Q
says "rit Thomas5 director of 'rowth e9uity for 0ational "ity 8nvestment Mana'ement "o.5 the
su# advisor for Armada ;unds. As of March H*5 $epsi was the seventh-lar'est holdin' in the
Armada Ta/ Mana'ed :9uity ;und and the tenth-lar'est holdin' in the Armada :9uity 1rowth
8n fact5 $epsi?s car#onated #evera'es are not even the #i''est 'enerator of sales and earnin's for
the company. $epsi?s ;rito-Gay #rand of snac foods5 which include ;ritos5 -oritos and .old
1old5 accounted for E*.( percent of revenue and E,.H percent of operatin' profits in the first
$epsi?s soft drin #usiness made up *F percent of sales and (H.( percent of operatin' profit.
$epsi also owns 1atorade and Ouaer ;oods5 havin' ac9uired Ouaer 4ats last year.
4ne potential ris for #oth $epsi and "oe is the economy. 0o5 not if it 'oes #ac into a
recession. 8f the economy continues to improve5 the stocs could fall victim to what is nown as
sector rotation5 the sellin' of defensive companies lie food and #evera'es in order to #uy more
economically sensitive companies in the financial services and technolo'y sectors. To that end5
shares of $epsi and "oe fell sli'htly on 7ednesday durin' the "isco-induced maret rally.
Still5 Thomas says si'ns that the dollar is startin' to weaen compared to other currencies should
prop up #oth stocs. That?s #ecause a weaer dollar helps #oost the profits of international
su#sidiaries5 since profits made in a forei'n currency are converted #ac to dollars. The majority
of "oe?s sales are from its international operations5 with just HD percent of revenue comin' from
the A.S. last year. $epsi is not as #i' 'lo#ally #ut currency fluctuations are still a factor5 as
international sales accounted for (F percent of revenue in ())*.

Coke and Pepsi in India:
"oca-"ola controlled the 8ndian maret until *FKK5 when the Ianata $arty #eat the "on'ress
$arty of then $rime Minister 8ndira 1andhi. To punish "oca-"ola?s principal #ottler5 a "on'ress
$arty stalwart and lon'time 1andhi supporter5 the Ianata 'overnment demanded that "oca-"ola
transfer its syrup formula to an 8ndian su#sidiary. "oca-"ola #aled and withdrew from the
country. 8ndia5 now left without #oth "oca-"ola and $epsi5 #ecame a protected maret. 8n the
meantime5 8ndia?s two lar'est soft-drin producers have 'otten rich and la=y while controllin'
D)L of the 8ndian maret. These domestic producers have little incentive to e/pand their plants
or develop the country?s potentially enormous maret. Some analysts reason that the 8ndian
maret may #e more lucrative than the "hinese maret. 8ndia has D,) million potential
customers5 *,) million of whom comprise the middle class5 with disposa#le income to spend on
cars5 V".s5 and computers. The 8ndian middle class is 'rowin' at *)L per year. To o#tain the
license for 8ndia5 $epsi had to e/port J, of locally made products for every J* of materials it
imported5 and it had to a'ree to help the 8ndian 'overnment to initiate a second a'ricultural
revolution. $epsi has also had to tae on 8ndian partners. 8n the end5 all parties involved seem to
come out ahead> $epsi 'ains access to a potentially enormous maret@ 8ndian #ottlers will 'et to
serve a maret that is e/pandin' rapidly #ecause of competition@ and the 8ndian consumer
#enefits from the competition from a#road and will pay lower prices. :ven #efore the first #ottle
of $epsi hit the shelves5 local soft drin manufacturers increased the si=e of their #ottles #y (,L
without raisin' costs.
The 8ndian soft drins maret is at *+) million cases per year. This is very low5 even as
compared to $aistan and Ban'ladesh. All these factors to'ether have contri#uted to a ()L
'rowth in the soft drins industry.. 8f this demand continues to 'row at ()L 'row at ()L
annually5 within *) years the volumes could reach * #illion cases. This ind of 'rowth is the
reason for the entry of the two 'iants of the soft drin industry of the world.
"oca-"ola and $epsi to'ether control FKL of the + entire 8ndian marets. The rest of the HL is
shared #y companies lie "ad#ury-Schweppes and "ampa-"ola. The total no. of case sold is *+)
million of these KK million cases of "ola drins are sold and EH million of non-cola drin. There
is a rapid increase in the sale of cola soft drins. 7hereas in *FF)5 they accounted for a third of
all soft drins sold5 now their share is well over half. Also cola sales are 'rowin' at a faster rate
than non-colas. 4ne of the reasons for this could #e the a''ressive maretin' strate'ies for "ola
drins #y $epsi and "oca-"ola.
The race to 9uench the 'reat 8ndian thirst had dei'ned.
Pepsi findings:
$epsi is the (0- lar'est sellin' soft drin in 8ndia today. 8n -:G38 it has H,L of the maret
share. 8n 8ndia it has ++L of the maret share main' it the lar'est sellin' soft drin5 #ut the
second lar'est company in terms of sales.
The sales of $epsi is appro/imately .s. *5))) crore annually in 8ndia of this only a#out .s. H)
crore annually is credited to the foods section of $epsi. The rest is all earned #y the soft drins.
The soft drins in $epsi ;oods GT- include>
*. $epsi "ola
(. Mirinda 4ran'e
H. K-Ap
+. Mirinda Gemon
The main advanta'e the $epsi has over its nearest competitor i.e.5 "oca-"ola is that of it<s was
the first multinational to enter 8ndia5 in the soft drins sector. $epsi officials and T-ial-a-$epsi<
scheme to 'row the maret5 instead of 'ivin' discounts at the retail level. Another point which
attri#uted to $epsi<s success is the #ottlin' operations. $epsi does most of its #ottlin' on its own.
Another si'nificant investment of $epsi has #een fountains. ;ountains have considera#ly
increased sales of $epsi5 as they have offered consumers a whole new way to e/perience soft
drin. Accordin' to a study done5 D)L of all soft drins are consumed on premise5 at the point of
purchase5 rather than at home@ thus the fountain initiative has paid off.
Thus we see that $epsi has followed a''ressive maretin' strate'ies main' they 'et into the
minds of the consumer #y #ein' visi#le inside and outside the consumers home #y way of
television5 radio 0ewspapers5 hoardin'5 sales-promotion schemes5 etc. $epsi has #een voted the
num#er one customer service company across cate'ories in terms of re'ularity5 availa#ility
responsiveness and initiative.
8f we see the present scenario its hard to tell which #rand is winnin' the cola wars as $epsi
had e/tended its cola wars to other sectors lie ;.8T4-GAYS and 08MB44P which is
'ivin' tou'h competition to coca Ccola which doesn<t tar'et on these sectors.
Second aspect which is to #e 'iven in consideration is that5 #oth the companies are
spendin' heavily on advertisement and more cele#rities are roped in #y #oth the
companies to fi'ht the competition.
.ecently "4GA-"4GA #evera'es A"T4.S 8M.A0 B3A0 A0- BAGB8 for a new ad
@to reply #ac to this a new ad #y $:$S8 #evera'es featurin' A"T4. .A0B8. BA$44.
and V80-3A -A.A S8013 came up which is main' waves at present.
"oe is served in M" -40AG-S and there we won<t find $epsi products even the coffee
served is of 1:4.18A which is a coca-cola #rand5 same is the case of $8PPA 3AT and
B;" which is owned #y $:$S8 "4 there only $epsi products are served 555this had lead (
clear war in restaurant se'ment as wellM
$:$S8 is tar'etin' youn' 'eneration and their ad campai'ns are a clear e/ample of that5
whereas coca-cola is tar'etin' the family as a whole which has #een its old formula from
$resently coca-cola may #e leadin' in #evera'es lie coe5 #ut its facin' severe
competition from Mirinda5 0im#oo= and snac industry where $:$S8 is rulin' thans to
its BA.BA.: ad that has led to 'reat sales for $:$S8 "4.
Thou'h in paced drinin' water B80G:Y 2"4"A-"4GA B.A0-6 and A"OA;80A
2$:$S8 "4 B.A0-6 #oth are treated e9ually #y customers. Moreover B8SG:.8 still
rules in this se'ment.
The "4GA 7A.S #etween coca-cola and $epsi would further 'row and in my view its
never endin'
Both the companies would try to #ecome 04* and there would A- 7A. #etween the
two which would prove to #e #eneficial for actors/actresses as they would earn more
throu'h advertisements.
$epsi have started advertisements with female actresses -::$8BA $A-AB40: and
"4"A-"4GA which had up till now only endorsed male actors for the *
time endorsed
BAGB8 of -:V- fame with 8M.A0 B3A0 in its new ad.
7ith the comin' up of "4MM:07:AGT3 1AM:S ()*) in 0:7 -:G38 5 #oth the
#rands would try to attract customers towards itself with heavy promotion and ad
campai'ns to #uild new customers and increase there share in maret as well as
stren'then their #rand value and earn profits.
Soft drins are an impulse product. 7hen a person is thirsty5 he would first thin of water or tea.
Some even would prefer T0im#oo= !U
The 8ndian population is the lar'est in the world today5 there can #e no other country in the
world5 which provides so much of an opportunity for the soft-drin manufacturers. The 8ndian
soft drin maret is at *+) million cases per year5 this is very low. Thus the consumption of soft
drin can 'o up.
Sinc**DVe the entry of "oca-"ola into the country the industry is 'rowin' at a rate of ()L
annually. 8f this rate is maintained5 then #y the year ()), the maret of soft drin would #e *
#illion cases annually.
3owever "oca-"ola wants to accomplish this feat #y them. To do this the industry has to tae
certain steps. All the companies are fi'htin' to 'et a major share of this 'rowin' maret. They
should all try to increase the total maret alon' with their individual shares.
4n the #asis of all the field wor and ta#le wor done5 some su''estions can #e made5 which
may help the company in increasin' the total maret as well as the sale of the companies. The
various su''estions that can #e made are as follows>-
Soft drins retail at prices #etween .s. E and .s. *). These are e/pensive when measured
a'ainst purchasin' power.
Accordin' to one study5 it taes 8ndian ,) minutes of wor to #e a#le to #uy a #ottle in other
countries5 the norm is five minutes. Thus to increase the total maret of soft drins5 manufactures
should try and decrease the prices5 so as to increase sales.
Availa#ility is a major factor5 which maes the consumer #uy a soft drin. Soft drins should #e
made availa#le more readily than present. There are only H))5 ))) retailers stocin' soft drins
in 8ndia. Thus retailin' outlets should #e increased. Also related to this point5 is vendin'
machines. 8n developed machines5 vendin' machines are ept in all consumer areas5 lie super
marets5 schools5 amusement pars5 local marets5 etc. These
Marketing Management- By Philip Kotler

85 MMMMMMMMMMMMMMMMM student of BBA5 8nvertis Aniversity Bareilly. 8 am
worin' on academic project titled a study on consumer #uyin' #ehavior towards Samsun'
smart phones in Bareilly5 Attar $radesh in which 8 have to collect some data throu'h this
9uestionnaire. The information collected throu'h this 9uestionnaire will #e used for academic
purpose only.
:-A"AT840AG G:V:G>-
O*. 7hich 9uantity of your softdrin you often purchase
a) 200 ml
b) 300 ml
c) 600 ml
d) 2 liter
O(. 7hich Softdrin do you -rin moreW
a) Coca Cola
b) Pepsi
c) Neither
OH. 7hich do you prefer the taste of
a) Coca Cola
b) Pepsi
c) Like them equally
O+. 7hich on do you #e consider most $opularW
a) Coca Cola
b) Pepsi
c) Do!t ko"
O,. 7hat influence choice of soft drin $epsi or "oca "olaW
a) #aste
b) $%ailability
c) &rad 'ma(e
d) Price
e) $d%ertisemet
OE. 7hich #rand of "old -rin you lie the mostW
a) Pepsi
b) Coca Cola
c) )up
d) De"
OK. 3ow many times in a wee you tae colddrinW
a) *ce
b) #"ice
c) #hrice
d) +ore tha 3 times
OD. 7hich company si'na'e you have in your outletW
a) Pepsi
b) Coca Cola
OF. 7hich #rand of soft drin provides you #etter facility W
a) Pepsi
b) Coca Cola
c) &oth
O*). 7hat ind of promotional activities effect sales mostlyW
a) ,ree bottle -cheme
b) Pri.e
c) Discout /ate
d) *ther
O**. 7ould you 'o for another #rand if the price of your #rand in increased
a) 0es
b) No
O*(. -o you want to 'ive any su''estionW
a) 0es 1-peci2y)
b) No
Data Analysis
O*. 7hich 9uantity of your softdrin you often purchase
e) 200 ml
2) 300 ml
() 600 ml
h) 2 liter
O(. 7hich Softdrin do you -rin moreW
d) Coca Cola
e) Pepsi
2) Neither
OH. 7hich do you prefer the taste of
d6 "oca "ola
e6 $epsi
f6 Gie them e9ually
O+. 7hich on do you #e consider most $opularW
d) Coca Cola
e) Pepsi
2) Do!t ko"
O,. 7hat influence choice of soft drin $epsi or "oca "olaW
2) #aste
() $%ailability
h) &rad 'ma(e
i) Price
3) $d%ertisemet
OE. 7hich #rand of "old -rin you lie the mostW
e) Pepsi
2) Coca Cola
() )up
h) De"
OK. 3ow many times in a wee you tae colddrinW
e) *ce
2) #"ice
() #hrice
h) +ore tha 3 times
OD. 7hich company si'na'e you have in your outletW
c) Pepsi
d) Coca Cola
OF. 7hich #rand of soft drin provides you #etter facility W
d) Pepsi
e) Coca Cola
2) &oth
O*). 7hat ind of promotional activities effect sales mostlyW
e) ,ree bottle -cheme
2) Pri.e
() Discout /ate
h) *ther
O**. 7ould you 'o for another #rand if the price of your #rand in increased
c) 0es
d) No
O*(. -o you want to 'ive any su''estionW
c) 0es 1-peci2y)
d) No