PROJECT REPORT

ON ANALYSIS
OF
MARKETING STRATEGY OF
COCA COLA AND PEPSICO

INTRODUCTION TO BEVERAGE INDUSTRY

1.1 BEVERAGE
Any type of liquid specifically prepared for human consumption. Beverages in addition to
basic need form part of the culture of human society. Different types of beverages are as
follow

1.1.1 WATER
Despite the fact that most beverages, including juice, soft drinks, and carbonated drinks,
have some form of water in them; water itself is often not classified as a beverage, and the
word beverage has been recurrently defined as not referring to water but the bottled water
that is processed through proper filtration and purification comes under the beverage
category.
1.1.2 ALCOHOLIC BEVERAGES
An alcoholic beverage is a drink containing ethanol, commonly known as alcohol,
although in chemistry the definition of an alcohol includes many other compounds. Ethanol
(alcohol) is a psychoactive drug that has a depressant effect.
Alcoholic beverages are divided into three general classes:
Beers: The two main types of beer are ale and lager; each type has a distinct production
processes. Mass-produced beer is typically aged for only a week or two after its
fermentation and has an alcohol content of 4%6% ABV. Other kinds of beer may be
fermented and aged for several months.
Wines: Wine involves a longer (complete) fermentation process and a long aging process
(months or years) that results in an alcohol content of 9%16% ABV. Sparkling wine can
be made by adding a small amount of sugar before bottling, which causes a secondary
fermentation to occur in the bottle.

Spirits: Unsweetened, distilled, alcoholic beverages that have an alcohol content of at least
20% ABV are called spirits. Spirits are produced by distillation of a fermented product;
this process concentrates the alcohol and eliminates some of the congeners.
1.1.2 NON-ALCOHOL BEVERAGES
A non-alcoholic beverage is a beverage that contains no alcohol. Non-alcoholic mixed
drinks (including punches, "virgin cocktails", or "mock tails") are often consumed by
children; people whom wishing to enjoy flavorful drinks without alcohol. Non-alcoholic
beverages contain no more than .5 percent alcohol by volume. It also includes drinksthat
have undergone an alcohol removal process such as non-alcoholic beers and de-alcoholized
wines.
Non-alcoholic variants:
Low Alcohol Beer
Non-Alcoholic Wines
Sparkling Ciders
1.1.3 SOFT DRINKS
A soft drink is a beverage that does not contain alcohol. The name "soft drink" specifies a
lack of alcohol by way of contrast to the term "hard drink". The term "drink", while
nominally neutral, sometimes carries connotations of alcoholic content.Beverages like
colas, flavored water, sparkling water, iced tea, lemonade, squash, and fruit punch are
among the most common types of soft drinks. Many carbonated soft drinks are optionally
available in versions sweetened with sugars or with non-caloric sweeteners.
1.1.4 HOT BEVERAGES
Coffee-based beverages: Cappuccino, Coffee Espresso, Caf au lait, Frappe, Flavored
coffees (mocha etc)
Hot chocolate: It is a heated beverage that typically consists of shaved chocolate or cocoa
powder, heated milk or water, and sugar.

Hot cider: It is an alcoholic beverage usually made from the fermented juice of apples,
although pears are also used. In the United Kingdom, pear cider, which has no apple
content, is known as Perry.
Tea-based beverages: Tea, Green Tea, Flavored Tea, Pearl Milk Tea
Herbal teas: An herbal tea, tisane, or ptisan is an herbal infusion made from anything other
than the leaves of the tea bush (Camellia sinensis). Originated from both China and Middle
East
1.1.5 OTHERS
Some substances may either be called food or drink, and accordingly be eaten with a spoon
or drunk, depending on solid ingredients in it and on how thick it is, and on preference:
Soups: Soup is a food that is made by combining ingredients such as meat and vegetables
in stock or hot/boiling water, until the flavor is extracted, forming a broth.
Yogurt: yoghurt is a dairy product produced by bacterial fermentation of milk.
Fermentation of the milk sugar produces lactic acid, which acts on milk protein to give
yoghurt its texture and its characteristic tang. Soy yoghurt, a dairy yoghurt alternative, is
made from soymilk.
Buttermilk: It is a fermented dairy product produced from cows' milk with a
characteristically sour taste. The product is made in one of two ways. Originally,
buttermilk was the liquid left over from churning butter from cream. In India, buttermilk,
widely known as "chaas" is known to be the liquid leftover after extracting butter from
churned curd.

HISTORY OF COCA COLA

Coca-Cola, started out as an insignificant one-man business and over the last one hundred
and ten years has grown into one of the largest companies in the world. Dr. John
Pemberton, an Atlanta pharmacist, invented Coca-Cola. He concocted the formula in a
three-legged brass kettle in his backyard on May 8, 1886. He mixed a combination of lime,
cinnamon, coca leaves, and the seeds of a Brazilian shrub to make the fabulous beverage.
Coca-Cola debuted in Atlanta's largest pharmacy, Jacob's Pharmacy, as a five-cent noncarbonated beverage. Later on, the carbonated water was added to the syrup to make the
beverage that we know today as Coca-Cola.In the mid-1970, more than half Coca-Cola

sold was outside of the U.S. Coca-Cola products outsell closest competitor by more than
two to one. One in every two cola and one in every three soft drinks is a Coca-Cola
product. The best-known trademark in the world is sold in about one hundred and forty
countries to 5.8 billion people in eighty different languages. This is why Coca-Cola is the
largest soft drink company in the world. For more than 65 years, Coca-Cola has been a

sponsor of the Olympics.Advertisements for Coca Cola started on the radio in the 1930s
and on the television in 1950. Currently Coca-Cola is advertised on over five hundred TV
channels around the world.

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

opportunity existed to bottle Pepsi so that people could drink it anywhere.

The business began to grow, and on June 16, 1903, "Pepsi-Cola" was officially registered
with the U.S. Patent Office. That year, Caleb sold 7,968 gallons of syrup, using the theme
line "Exhilarating, Invigorating, Aids Digestion." He also began awarding franchises to
bottle Pepsi to independent investors, whose number grew from just two in 1905, in the
cities of Charlotte and Durham, North Carolina, to 15 the following year, and 40 by 1907.
By the end of 1910, there were Pepsi-Cola franchises in 24 states.
Pepsi-Cola's first bottling line resulted from some less-than-sophisticated engineering in
the back room of Caleb's pharmacy. Building a strong franchise system was one of Caleb's
greatest achievements. Local Pepsi-Cola bottlers, entrepreneurial in spirit and dedicated to
the product's success, provided a sturdy foundation. They were the cornerstones of the
Pepsi-Cola enterprise. By 1907, the new company was selling more than 100,000 gallons
of syrup per year.
Growth was phenomenal, and in 1909 Caleb erected a headquarters so spectacular that the
town of New Bern pictured it on a postcard. Famous racing car driver Barney Oldfield
endorsed Pepsi in newspaper ads as "A bully drink...refreshing, invigorating, a fine bracer
before a race."
The previous year, Pepsi had been one of the first companies in the United States to switch
from horse-drawn transport to motor vehicles, and Caleb's business expertise captured
widespread attention. He was even mentioned as a possible candidate for Governor. A
1913 editorial in the Greensboro Patriot praised him for his "keen and energetic business
sense."
Pepsi-Cola enjoyed 17 unbroken years of success. Caleb now promoted Pepsi sales with
the slogan, "Drink Pepsi-Cola. It will satisfy you." Then came World War I, and the cost of
doing business increased drastically. Sugar prices see sawed between record highs and
disastrous lows, and so did the price of producing Pepsi-Cola.
After seventeen years of success, Caleb Bradham lost Pepsi Cola. He had gambled on the
fluctuations of sugar prices during WORLD WAR I, believing that sugar prices would
continue to rise but they fell instead leaving Caleb Bradham with an overpriced sugar

inventory. Pepsi Cola went bankrupt in 1923.In 1931, the Loft Candy Company Loft
president, Charles G. Guth who reformulated the popular soft drink, bought Pepsi Cola.
In 1940, history was made when the first advertising jingle was broadcast nationally. The
jingle was "Nickel Nickel" an advertisement for Pepsi Cola that referred to the price of
Pepsi and the quantity for that price. "Nickel Nickel" became a hit record and was recorded
into fifty-five languages.
In 1965 Pepsi-cola company and Frito-Lay, Inc. merged which result in the formation of
today know PepsiCo, Inc.

MARKETING STRATEGY

OF

COCA COLA AND PEPSICO

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