Beruflich Dokumente
Kultur Dokumente
PROJECT REPORT
ON
MARKET ANALISYES FOR POSITIONING
OF PEPSI & COCA COLA IN INDIA
IN PARTIAL FULFILLMENT OF
BACHELOR DEGREE IN BUSINESS
ADMINSTRATION
2009-2012
BY
PRIYA DUBEY
Guided by
Prof. Mr. Pradeep Tripathi
Dayanand Academy of Management Studies
Kanpur
DATED:
LETTER NO:
DECLERATION
Place:
Signature:
Date:
student:
Name of the
ACKNOWLEDGEMENT
Signature:
Date:
student:
Name of the
TABLE OF CONTENT
1. INTRODUCTION
6
2. The Indian Beverage Market
8
3. History Pepsi & Coke
4. Overall effectiveness
24
5. New Marketing Environment
25
29
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INTRODUCTION
India with a population of more the 100 cores is potentially
one of the largest consumer markets in the world. With
urbanization and development of economy, tastes and
interests of the people changes according to the advance
nation.
Indias one billion people, growing middle class, and low per
capita consumption of soft drinks made it a highly contested
prize in the global CSD market in the early twenty-first
century. Ten percent of the countrys population lived in
urban areas or large cities and drank ten bottles of soda per
year while the vast remainder lived in rural areas, villages,
and small towns where annual per capita consumption was
less than four bottles.
Coke and Pepsi dominated the market and together had a
consolidated market share above 95%. While soft drinks
were once considered products only for the affluent, by
2003 91% of sales were made to the lower, middle and
upper middle classes. Soft drink sales in India grew
76%between 1998 and 2002, from 5,670 million bottles to
over 10,000 million and were expected to grow at least 10%
per year through 2012.In spite of this growth, annual per
capita consumption was only 6 bottles versus 17 in Pakistan,
73 in Thailand, 173in the Philippines and 800 in the United
States With its large population and low consumption, the
rural market represented a significant
Opportunity for penetration and a critical battleground for
market dominance. In 2001, Coca-Cola recognized that to
compete with traditional refreshments including lemon
water, Green coconut water, fruit juices, tea, and lassies,
competitive pricing was essential. In response, Coke
launched a smaller bottle priced at almost 50% of the
traditional package.
HISTORY OF PEPSI:
PEPSI, company founded by CALEB D BRADHAM in 1890 at
North Carolina in USA. Its CEO is ROGER ENRICO and in India
Pepsi CO. Holding its chairman MR.RAJIV BAKSHI. The head
quarter of Pepsi-CO.in India is at Gurgaon. Presently it is
operated in 196 countries.
Pharmacist CALEB invented it to cure the disease
DISPARSIA. It is from this word that was related to Pepsi.
Soon it entered market American market as soft drink which
at that time was mostly dominated by coca-cola, but soon
Pepsi was able to dominate the cola market and there after
It has been no looking back. Pepsi and coca-cola are
engaged in ferocious cold war that has taken the whole
world by storm.
Pepsi stands 51 positions among the fortunate 500
companies of the world. Its total capital is approx $3000
crore and total sales annually is worth $37 crore, half of
which comes from beverages and other half from the snack
foods division. The beverages arm of the Pepsi co. Is Pepsicola Company and the snack food company is called frin to
lay Inc. The year 1998 is the centennial year of Pepsi. Its
total profit in the year 1996-1997 was worth Rs.45 core
approx. The total number of employees engaged in this
business is 4.25 lakhs globally.
Year
Name
Awarding
organization
Wake Forest
University.
University of
Warwick.
2011
Honorary Doctorate of
Law
Miami University.
2010
Honorary Doctorate of
Humane Letters
Pennsylvania State
University.
Duke University.
New York
University.
12
President of India.
13
previous six ounce bottle size for the same five cent price. Profits increased
drastically and the search for new bottlers to join the franchise began.
Within twenty years, efficiency nearly doubled in matters of production so
Pepsi began building new plants. The 1970s further increased productivity
by using light weight plastic to produce bottles more efficiently. As the
1980s went on, Pepsi focused on increasing the amount of franchises it
owns, which gave a total of eighty by the end of the eighties. During the
twentieth century, Pepsi began expanding their company internationally;
those profits brought in less than ten percent of their total. Pepsis different
bottlers have finally merged by 1997 and separated into bottling and
marketing divisions in the next year. Pepsi Bottling Group earned the right
to sell, manufacture, and distributes Pepsi products internationally,
specifically to Turkey. This cost one hundred million dollars. Finally in
2006, Pepsi Bottling Group became a joint manufacturer with sixteen
regional bottlers and called them Pepsi Northwest Beverages.
14
Nature of Business:
The Pepsi Bottling Group manufactures, distributes, and delivers its widevariety of bottled drinks. Between Canada and the United States, seventyfive percent of the companys sales are accounted for. After PepsiCo bought
Pepsi Bottling Group, PepsiCo now owns about eighty percent of the North
American bottled drink distribution centers. This transaction allows
PepsiCo to be one of the biggest food and beverage companies
internationally. Pepsi Bottling Group also made it possible to cut costs,
increase profitability, and introduce the market with new products more
quickly. In 2008, Pepsi Bottling Group expanded more rapidly than ever by
purchasing JSC Lebedyansky, the number one ranked juice maker in
Russia, for over a little over a billion dollars. This buyout earned Pepsi
Bottling Group twenty-five percent of the international bottling business.
Since its affiliated company owned the other seventy-five percent, this was
a great move. One year later, Pepsi Bottling Group bought Better Beverages
and Ab-Tex beverage. It now has the exclusive rights to sell its bottled
beverages internationally in Canada, Spain, Greece, Russia, and Turkey as
well as domestically in forty-two states plus Washington D.C. In addition to
owning the Mexican Pepsi Bottler, it sells Dr Pepper for their distributer in
the United States. Pepsi Bottling Group runs close to six hundred
manufacturing and distribution organizations and thirty-eight thousand fleet
vehicles. This is an extremely productive, profitable company.
15
Mission Statement
To be the worlds premier consumer products company focused on
convenient foods and beverages. We seek to produce healthy financial
rewards to investors as we provide opportunities for growth and enrichment
to our employees, our business partners and the communities in which we
operate. And in everything we do, we strive for honesty, fairness and
4. The target market for convenient foods (vending machine food): offices,
hospitals, schools
16
Marketing Mix:
Product: convenience food and bottled drinks
Bottled drinks: carbonated soft drinks, juices, teas, coffee drinks, energy
drinks, and bottled waters. Some examples from each category include
Pepsi, Mountain Dew, Sierra Mist, SoBe, Ocean Spray, Starbucks Double
Shot, Lipton, Amp, and Aquafina.
Foods: Chips, cheese curls, pretzels, multi-grain snacks, snack mixes,
popcorn, dips, granola bars, rice snacks, cookies, nuts, crackers, cereal,
maple syrup, rice dinners, and heat-and-eat side dishes. Some examples
from each category include Lays, Fritos, Cheetos, Rold Gold, Quaker
Granola Bars, Doritos, Munchies Snack Mix, Aunt Jemima, and Rice-ARoni.
17
Marketing environment
Microenvironment and the Five Forces of Competitive Position
1. Threat of New Entrants=this would effect Pepsis business because
consumers have more options to purchase than there already are. Examples
of New Entrants include RC cola and Faygo Pop.
2. Bargaining Power of Suppliers= Pepsi is already the number two bottling
company, so it can push to be number one.
3. Bargaining Power of Customers= There are many, many buyers, so this
does not affect Pepsi very much.
4. Threat of Substitute Products= This produces a small amount of threat
only because Pepsi is already the second most profitable bottling company
in the industry, so the only thing they need to worry about is the number 19
20
4.
Legal: Pepsi must abide by the (Food and Drug Administration) FDA
regulations.
5. Political: Pepsi is minimally affected by politics. Possibly, the
government may set financial limits on the company.
6. Technological: The idea of going green affects Pepsi. Also, the limits
on carbon emissions that are set on companies cost Pepsi more money for
more efficient or green equipment. More money spent on capital=less
profits made on selling goods.
From the SWOT and LCVP analyses, two major things can be concluded.
First of all, Pepsi is hurting from the recession and declining economy.
Although there are still sales and profits, there is no comparison to the
amounts of money it used to bring in before the recession. Prices of
products rose because of the rising price of gas and products used in
manufacturing. Because of this, expansion is limited in both the United
States and foreign countries.
The second thing that can be concluded from the analyses is that the health
food campaigns are making such an impact on consumers that sales are
declining. Many Pepsi products are not healthy, so people are more
reluctant than ever to buy them now. Some products are selling such as
bottled water and bottles juice drinks, but these sales are not making the
same profits as the less healthy drinks. Some other small things can be
concluded from the analyses, too. These include less international sales and
popularity is high.
21
Overall, the most important thing that emerged from these analyses is how
much the health food industry is hurting Pepsi.
Advantages:
Wide range of/many different target markets
Numerous amounts of brands
Various types of products in so many different categories
Competitive prices
Products sold in many different establishments
National and international sales
Excellent advertisement
Number two seller of bottled beverages
Growing company
Popular brand name; easily recognized
22
23
Overall Effectiveness:
Pepsi has a very effective marketing strategy. To show this, each part of the
marketing strategy will be listed with the reason why it is effective:
Mission Statement: Pepsis mission statement is firm and to the point. It
stresses the companys focus as well as the importance of their customers as
well as their employees and business partners. This proves Pepsi runs a
strong company and is confident in it.
Target Markets: Pepsi has five different target markets. Many companies do
not have this many. Since Pepsi has such an impressive amount of target
markets, they have the opportunity to sell their products to so many
different people.
Marketing Mix: There are so many different products and brands that Pepsi
sells for competitive prices. They promote sales of their products in
countless different places that the product is bound to sell no matter what.
Marketing Environment:
There are negative things involved towards Pepsi in this part of the
marketing strategy; however the positive things overpower the negative
ones indefinitely.
SWOT Analysis: Pepsis SWOT analysis has eight strengths and
opportunities and six weaknesses and threats. This shows that Pepsi is wellrun and productive.
LCVP Analysis: This part of the marketing strategy sums up the SWOT
analysis.
As listed above, there are many things that make Pepsis marketing strategy
so effective. Although, there are things that could be improved to make
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25
26
The weaknesses and threats sections of the SWOT analysis show things
that Pepsi needs to improve on. I recommend that Pepsi tries to focus on
international sales. Also, they should try hard to find alternatives to sugary,
calorie packed drinks because so many people are watching what they eat
due to the health food craze. This does not mean eliminate or reduce their
ever popular carbonated drinks and packaged snacks; it merely means that
creating new products that are healthier will help rise profits in this
healthy day and age.
Finally, resource prices are rising, causing production costs to rise as well.
Pepsi must find alternatives to rising resource prices so that they can keep
profits high.
27
29
PEPSI in Pakistan:
In Pakistan Pepsi distribution is indirect. Nationwide Pepsi has 67% of market share in
Lahore Pepsi is always at par as compare to coke. In December, 54%share is captured
by Pepsi, 49% by coke and remaining 1% by other brands. The market in Pakistan
is surely conquered by Pepsi. It has proved itself to be the No.1 soft drink in
Pakistan. In 1971, first plant of Pepsi was constructed in Multan, and from
there after Pepsi is going higher and higher. P e p s i ' s g r e a t e s t c o m p e t i t o r
i s C o c a C o l a . C o c a C o l a i s a n i n t e r n a t i o n a l recognized
brand. Cokes basic strength is its brand name and Cokes strategy is not to change
the brand name and logos which are in the consumers mind. But Pepsi
thinks that change is must and if a product is continuously consumed then
its utility starts decreasing. Pepsi with its aggressive marketing
planning and quick diversification in creating and promoting new ideas and
product packaging.
Brand equity
Brand equity is outcome that accrues to a need/want satisfier when the
brand name is added on. It is the incremental contribution (Money) per year
obtained by the brand in comparison to the underlying product (or service).
The incremental contribution is driven by the individual customers
Incremental choice probability for the brand in comparison to his or her
choice probability for the underlying product with no brand-building
efforts. The method provides what-if analysis capabilities to predict the
likely impacts of alternative strategies to enhance a brands equity.
31
A useful definition is that a brand is the sum total of all that is known,
thought, felt and perceived about your company, service or product.
Branding, then, is the process of making products and companies into
brands -the consistent and disciplined way a company communicates a
brand's essence to the public.
Consumers' response to the brand revolves around the brand's image. This
makes the concept an essential input into marketing strategy since a
positive, strong brand image will presumably lead to choosing a particular
brand.
Achieving strong brand differentiation is absolutely fundamental to building
a compelling brand relationship with customers.
Brand equity can be thought of as the differential effect of brand knowledge
on consumer response to the marketing of the brand.
EMPLOYMENT OPPORTUNITIES:
Pepsi provides direct and indirect employment to person in
supplying its raw materials, packing materials, distribution
vehicles, glass bottles, plastic crates, display racks etc. And
to small artisans, painting and small traders in market
places activities.
All the Pepsi business in India is either in Industries with
backward linkages with farmers or in service industries,
being highly distribution oriented. It Pepsi system operates
over 1000 trucks (direct operation) 8000 three-wheeler
(distributors) and at least 1000 push carts, serving over half
a million outlets in India. By the year 2008 the number of
outlets to be served is expected to be doubled.
DEVELOPING SPORTS:
Pepsi today one of the main sponsors of sports activities in
India. It has continued to promote upcoming new player of
Cricket, Hockey and Football.
Pepsi has developed a Pepsi cricket academy, which would
develop over 500 young cricket enthusiasts in next five
years. Similarly Pepsi cricket coaching camp and clinic are
held to coach young boys in north and south.
33
COMMUNITY RELATIONS:
Most of the bottling plants of Pepsi are located in backward
areas, thereby giving huge employment opportunities in
these areas. Pepsi as a responsible company undertakes
social projects in and around the bottling plants. These
include supports to the education centers. Sponsors
inoculation camps, providing free health check-up, initiating
sanitation, drives, promoting literacy drives and helping
villages to put up bus shelter etc.
REVENUE GENERATION:
: HISTORY OF COKE:
The Coca-Cola Company is the world's largest beverage
company, largest manufacturer, distributor and marketer of
non-alcoholic beverage concentrates and syrups in the
world, and one of the largest corporations in the United
States. The company is best known for its flagship product
Coca-Cola, invented by pharmacist John Smith Pemberton in
1886. The Coca-Cola formula and brand was bought in 1889
by As a Candler who incorporated The Coca-Cola Company
in 189.
Coca-Cola India
On August 20, 2003Mr.sanjiv Gupta, President and CEO of
Coca-Cola India, sat in his office contemplating the events of
the last two weeks and debating his next move. Sales had
dropped by 30-40%in only two weeks on the heels of a 75%
five-year growth trajectory and 25-30%year-to-date growth.
Many leading clubs, retailers, restaurants, and college
campuses across the country had stopped selling Coca-Cola
and only six weeks into his new role as CEO, Gupta was
embroiled in a crisis that threatened the momentum gained
from highly successful two-year marketing campaign that
had given Coca-Cola market leadership over Pepsi.
36
37
It was clear that the $1 billion Indian soft drink market was
at stake and Gupta had to act.
38
International expansion
Cokes first international bottling plants opened in 1906 in
Canada, Cuba, and Panama. By the end of the 1920s CocaCola was bottled in twenty-seven countries throughout the
world and available in fifty-one more. In spite of this reach,
volume was low, quality inconsistent, and effective
advertising a challenge with language, culture, and
government regulation all serving as barriers. Former CEO
Robert Woodruffs insistence that Coca-Cola wouldnt suffer
the stigma of being an intrusive American product, and
instead would use local bottles, caps, machinery, trucks,
and personnel contributed to Cokes challenges as well with
a lack of standard processes and training degrading quality.
Coca-Cola continued working for over 80 years on
Woodruffs goal: to make Coke available wherever and
whenever consumers wanted it, in arms reach of desire.
The Second World War proved to be the stimulus Coca-Cola
needed to build effective capabilities around the world and
achieve dominant global market share. Woodruffs patriotic
commitment that every man in uniform gets a bottle of
Coca-Cola for five cents, wherever he is and at whatever
cost to our company was more than just great public
relations. As a result of Cokes status as a military supplier,
Coca-Cola was exempt from sugar rationing and also
received government subsidies to build bottling plants
around the world to serve WWII troops.
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40
42
45
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MISSION
OF
COCA-COLA
To refresh the world in mind, body & sprit.
To make a difference in our product.
To inspire moments of optimism through our brand and action.
To create a value in brands & difference everywhere we engage.
To do everything differs.
Our product in each hand.
Being a global leader in beverage.
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VISION
OF
COCA-COLA
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50
Marketing variables
1. Display items
2.Visicoolers
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53
Rural Success
Comprising 74% of the country's population, 41% of its
middle class, and 58% of its disposable income, the rural
market was an attractive target and it delivered results.
Coke experienced 37% growth in 2003 in this segment
versus the 24% growth seen in urban areas. Driven by the
launch of the new Rs. 5 product, per capita consumption
54
MASS MARKETING
However in some of its popular product both the companies
follow the mass marketing strategy. In this type of
GEOGRAPHICAL
REGION
Both companies treat hot countries such as Asia, Middle
East and African differently in comparison to cold countries.
As in tropical countries, consumption of soft drinks is 70%in
summer and 30% in winter season while in EUROPEAN
countries its consumption is almost uniform. So soft drink
companies prefer different marketing strategies in Asian and
European countries. In countries like India and Pakistan,
these companies invest huge resources in the season of
summers, and their target area is domestic users,
restaurants, school and college canteens and even rural
chaupals. While in winter season their target is mainly party
users and high-income group consumers.
55
56
GENDER
Gender based segmentation is very important. As taste of
male and female is different. Lets take the example of coca
cola, thumps up is promoted as masculine soft drinks while
coca cola and Fanta are having light taste and mainly
targeted for loving birds, ladies, and children. Same
example is available in Pepsi, Miranda orange flavor is
popular among ladies, girls, and children
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Diet Coke: Diet Coke was born in 1982. Diet Coke is the
drink for people who want no calories, but plenty of taste.
Known as Coca-Cola light in some countries, it's now the
No.3 soft drink in the world. Available in the following
flavors: Black Cherry Cola Vanilla, Cola, Cola Green Tea, Cola
Lemon, Cola Lemon Lime, Cola Lime, Cola Orange and Cola
Raspberry
Fanta:Fanta was introduced in the United States in 1960.
Consumers around the world, particularly teens, fondly
associate Fanta with happiness and special times with
friends and family. This positive imagery is driven by the
brand's fun, playful personality, which goes hand in hand
with its bright color, bold fruit taste and tingly carbonation.
Kinley: Kinley is a carbonated water that comes in wide
array of variants such as tonic, bitter lemon, club soda and a
myriad of fruit flavors. Available in the following flavors:
Apple Peach, Bitter Grapefruit, Bitter Herbal, Bitter Lemon,
Bitter Water, Blueberry Pomegranate, Club Soda, Ginger Ale,
Lemon and Raspberry
Limca: This thirst-quenching beverage features a fresh, light
lemon-lime taste and fun-loving attitude. It's a homegrown,
national treasure in India that is acquired by the Coca-Cola
Company in 1993. Limca continues to build a loyal following
among young adults who love the lighthearted way it
complements the best moments of their lives. This drink is
available in lemon flavor.
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MANUFACTURING PROCESS:
The bottling factory is having a manufacturing process
comprising of water treatment, plant producing
1oo*bacterial free soft water as for specification prescribed
by COKE & PEPSI. The soda sugar making unit is there to
prepare sugar syrup, standard mixed percentage. There is a
intermixing unit where through a semi automatic process
sugar syrup. The both flavor water and CO2 is punched
together resulting into the soft drinks of a particular flavor.
There is a huge bottle washing machine where the market
returned bottled are washed continuously in the super
heated water ,chlorine and then soft chilled water.
Through the exhausted washing system the bottles are
carried out of the washer with the help conveyer and
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PLANT
P.A.M
H.R
MANAGER
MANAGER
A/C ASSISTANT
H.RENGINEER
MANAGER
MANAGER
SHIFT SHIPPING
COORDINATOR
EXECUTIVE
A/C
WORKER
H.R
CLERK
ASSISTANT
T.D.M
Q.C.M
A.D.C
OPERATORS
M.E.M
SINIOR
M.D.M
M.D.C
Q.C
TECHNICIAN
C.E
CHEMIST
TECHNICIAN
EXECUTIVE
M.E
61
63
However Parle, the pioneer in the soft drinks, blazed its way
to national prominence with their product Thumps-up,
bearing the slogan Happy Days Are Here Again. This
particular slogan helped to win over the loyalists of addicts
to Coca-Cola. Soon the Indian soft drinks industries started
at a phenomenal rate and all Parle products Gold-Spot,
Limca and Thums Up became the brand leader in their own
segment.
In spite of all these the drinks market still has large gap, as
claim by soft drink manufacturers. To
Fill these gaps there are many soft drinks concentrate and
squashes flooded the market. The Indian soft market
basically offered three flavour i.e. Orange, Lemon, and Cola.
In 1988, multinational company PEPSI entering the Indian
market.11 years after the existence of coca-cola . It had
name, fame and edge of being one of the best in the game
and it also offered stiff competition too parle and coke. Now
Pepsi is going all out to prove that they are the best.
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DATA ANALYSIS
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.
EXHIBIT 2
Brand portfolio
Name
Launched
Discontinued
Note
Picture
Coca-Cola
1886
CaffeineFree CocaCola
1983
Coca-Cola
Cherry
1985
2001
Coca-Cola
Vanilla
2002
2007
Coca-Cola
C2
2004
2005
CocaCola
Li m e
2005
CocaCola
ry
June
End of
2005 2005
CocaCola
Zero
2005
CocaCola
M5
CocaCola
Black
Cherry
Vanilla
CocaCola
Belk
2005
CocaCola
Citra
CocaCola
Sango
2006
CocaCola
Orange
2006
2006
2007
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Local competitors
The world, some local brands do 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 Frenchregion of Bretagne, Breizh Cola
is available. In Peru, Inca Kola outsells Coca- Cola. However, The CocaCola Company purchased the brand in 1999.
In Sweden, Julmust outsells
Coca-Cola during the Christmas season.[43] In Scotland, the locallyproduced Irn-Bru was more popular than Coca-Cola Pepsi is often
second to Coke in terms of sales, but outsells Coca-Cola in some
localities. Around[4until
2005, when Coca-Cola and Diet Coke began to
outpace its sales. 4] In India, Coca-Cola ranked third behind the leader,
Pepsi-Cola, and local drink Thums Up. However,
The Coca-Cola
[
45
]
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, in which there exists a United States
embargo. French brand Mecca Cola and British brand Qibla Cola,
popular in the Middle East, are a competitor to Coca-Cola. In Turkey,
Cola Turka is a major competitor to Coca-Cola. In Iran and also many
countries of Middle East, Zam Zam Cola and Pepsi Cola are major
competitors to Coca-Cola. In some parts of China, Future cola or
can be bought. In Slovenia, the locally-produced Cocktail 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. In Madagascar,
Classic Cola, made by Tiko Group, the largest manufacturing company in
the country, is a serious competitor to Coca- Cola in many regions. On the
Portuguese island of Madeira, Laranjada is the top selling soft drink. In the
UK Coca-Cola stated that Pepsi was not its main rival, but rather
Robinsons drinks.
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71
72
Coca-Cola C2 (2004)
Coke with Lime (2004)
Aquarius Mineral Water (2004)
Diet Coke with Lime (2004)
Diet Coke Sweetened with Splenda (2005)
Coca-Cola Zero (2005)
Coca-Cola Black Cherry Vanilla (2006)
Diet Coca-Cola Black Cherry Vanilla (2006)
Coca-Cola BlK (2006)
Diet Coke Plus (2007)
Coca-Cola Orange (2007)
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Bottlers
In general, The Coca-Cola Company (TCCC) and/or subsidiaries only
produces (or produce) syrup concentrate which is then sold to various
bottlers throughout the world who hold a Coca-Cola franchise. CocaCola 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 the resulting Coca-Cola
product to retail stores, vending machines, restaurants and food service
distributors.
One notable exception to this general relationship between TCCC and
bottlers is fountain syrups in the United States, where TCCC bypasses
bottlers and is responsible for the manufacture and sale of fountain
syrups directly to authorized fountain wholesalers and some fountain
retailers.
In 2005, The Coca-Cola Company had equity positions in 51
unconsolidated bottling, canning and distribution operations which
produced approximately 58% of volume. Significant investees
include:
36% of Coca-Cola Enterprises which produces (by
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WEAKNESSES
Weaknesses for any business need to be both minimized
and monitored in order to effectively achieve productivity
and efficiency in their business activities. Although the
international sales are increases but there is getting
saturation evident through testability in cola drink in USA
market and moreover all over the world the customer
preference for cola drink is shifting towards the healthy
drink is taking place. Being addictive of cola drink is also
a health problem, because drinking of carbonated soft
drink daily has an effect on your body also.
OPPORTUNITIES
Brand recognition is the significant factor affecting Pepsi
and Coke competitive position. Pepsi and Coke brand is
known well throughout 94% of world today.
As in developing countries the per head consumption of
cola drink is very less which evident from taking example
of India. In India per head consumption is only 6 bottles
as compare to 700 bottles in USA and in Indian market
only 5% of the beverage comes under packaging. So
looking at these data we can that for these two giant a lot
of potential is there in developing market which is now
also untapped.
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THREATS
Currently, the threat of new viable competitors in the
carbonated soft drink industry is not very substantial. The
threat of Substitute, however, is a very real threat. The
soft drink industry is very strong, but consumers are not
necessarily married to it. Possible substitutes that
continuously put pressure on both Pepsi and Coke include
tea, coffee, juice, milk and hot chocolate. Even through
the Coca cola and Pepsi control nearly 40% of the entire
beverage market, the changing health consciousness of
the market could have a serious affect. Of course, both
have already diversified into these markets, but still
theseSubstitutewill remain threat to them. Consumer
buying power is also represents a key threat to the Pepsi
and Coke.
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Logo design
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CONCLUSION
The whole research shows that there are only two companies dominating
in the soft drinks market- coca-cola and Pepsi. There is neck to- neck
competition in between these companies.
Coke has been adopting aggressive marketing strategies to attract
customer. Once of the cokes major competitor is yet another global
leader Pepsi. To wars off the threats posed by this stringent
competition of coke & Pepsi has adopted some excellent marketing
strategies like
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QUESTIONNAIRE
Q1. Type of outlet
(a) General store
(d) Canteen
Both
(b) Pepsi
(d) Others
(b) Pepsi
(d) No signage
Coca cola
(b) Pepsi
(a)
Both
(d) Mixed
Coca cola
(b) Pepsi
(C) Both
No
(a)
Branded
(b) unbranded
(c) Both
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Q10. What do you feel about the price of branded soft drinks ?
(e) Reasonable
Q11. Do you feel a price reduction will increase the sales of branded
soft drinks ?
(a) Yes
(b) No
(c) Display
Q13. Do you think that aggressive advertising further increase the sales
volume of Pepsi?
(a)
Yes
(b) Prize
(d) other
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