A

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
1

DATED:

LETTER NO:

TO WHOM IT MAY CONCERN

This is certify that Ms. Priya Dubey student of Dayanand

Academy of Management Studies, Kanpur, has
completed her project on the topic of MARKET ANALISYES
FOR POSITIONING OF PEPSI & COCA COLA IN INDIA at
VARUN BEVERAGES LTD., GREATOR NOIDA has submitted
her project report for the period 16/01/12 to 03/03/12 in
partial fulfillment of BBA of the college for the academic
year 2009- 2012.
Ms. Priya Dubey, has done his project to our satisfaction.
During the said training period with us we found him sincere
and hard working.
We wish her all the success in the future.

For VARUN BEVERAGES LTD.

HUMAN RESOURCES
 2

DECLERATION

I hereby declare that project Titled MARKET ANALISYES

FOR POSITIONING OF PEPSI & COCA COLA IN INDIA is
an original piece of research work carried out by me under
the guidance and supervision of Prof. Mr.Pradeep Tripathi,
the information has been collected from genuine &
authentic sources. The work has been submitted in partial
fulfillment of the requirement of BBA to our college.

Place: Signature:

Date: Name of the

student:
 3

ACKNOWLEDGEMENT

It gives me great pleasure and satisfaction for the successful

completion of this project. Every successful piece of work
has many invisible helping hands with their invaluable
support and inspiration. For the completion of my project
report many person directly or indirectly assisted me.

At first, I would like to express my sincere thanks and deep

gratitude to my esteemed guide Prof. Pradeep Tripathi, for
their kind initiative guidance and valuable suggestion
without which the completion of this would not have been
possible.
I hope this report will be special interest to the marketing
students, who are on look for such real life situation beyond
their classroom studies.
Place: Signature:
Date: Name of the
student:
 4

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
6. Marketing Plan of PEPSI 29

7. Market Share in INDIA

34

8. International expansion
39
9. Overview about COCA-COLA
43
10. Object of the work
51
11. Marketing strategy of coke
54
12. Coca Cola & Pepsi organization chart
61
13 Data Analyses of Indian market
65
14. Local competitor
70
15. SWOT Analysis of Pepsi & Coke
77
16. Packing & Logo design
80
17. Conclusion
84
18 Questionnaire 86

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.
Marketing is about winning this new environment. It is about
understanding what consumers want and supplying it more
conveniently. Marketing deals with identifying and meeting
human needs and social needs. One of the shortest
definitions of marketing is “meeting needs profitably”. The
consumer market may be identified as the market for
product and services that are purchased by individuals as
household for their personal consumption. Soft drinks is a
typical consumer product purchased by individual primarily
quench their thirst and also for refreshment. Different types
of soft drinks are available in the market and more or less
content of all soft drinks is same. The market of soft drinks
is facing a cutthroat competition and many companies are
floating in the market with their product with different
brands names.
Thus in a country like India where more than 50% of total
population exists below poverty Line, the consumer cannot
afford such high price for soft drinks. As a result the trading
Activities of the soft drinks industry are concentrated in and
around big cities and town where the purchasing power of
population is considered comparatively high.
6

Soft drinks industry in India has an annual sale of about

4000crores, with per capita Consumption of soft drinks at a
low of seven bottle per annum (even Pakistan has a per
capita Consumption of 14; in china and U.S.A is more than
900 bottles) is due to price factor.

The marketing manager is responsible for both determining

and suitability of goods and services in the market to give
maximum satisfaction to the consumer. In order to provide
maximum satisfaction, the manager need to know, what is
the satisfaction level of the consumer i.e. what is their
expectation from the products etc. In order to meet above
requirements marketing manager conduct marketing
research. Marketing research identify market opportunities,
After the completion of marketing research, the company
measures and forecast the size, growth and profit potential
of each market opportunity.

The Indian Beverage Market

India’s 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 country’s 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.

8
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 Pepsi-
cola 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.

9
:INDRA NOOYI, CEO of PEPSI IN INDIA:
Indra Nooyi was born in Chennai in
Tamilnadu, India. She completed her
schooling from holy Angelis AIHSS,
Chennai. She received a bachelor’s
degree in Physics, chemistry and
mathematics from Madras Christian
College in 1974 and a Post Graduate in
Management (MBA) from Indian
institute of Management Calcutta in 1976.Beginning her
career in India, Nooyi held product manager positions at
Johnson & Johnson and textile firm Mettur Beardsell. She
was admitted to YALE SCHOOL OF MANAGEMENT in 1978
and earned a Masters degree in public and private
Management.

PepsiCo Executive:
Nooyi joined PepsiCo in 1994 and was named president and
CFO IN 2001. Nooyi has directed the company’s global
strategy for more than a decade and led PepsiCo’s
restructuring, including the 1997 divestiture of its
restaurants into Tricon. Now known as yum! Brands. Nooyi
also took the lead in the acquisition of Tropicana in 1998 and
merger with Quaker oats Company. Which also brought
Gatorade to PepsiCo? In 2007 she became the fifth CEO in
PepsiCo’s 44 year history.
According to Business week since she started as CFO in
2000, the company’s annual revenues have risen 72% while
net profit more than doubled, to $ 5.6 billion 2008
10

Nooyi was named on wall street journal’s list of 50 women to

within 2007 and 2008 and was listed among Time’s 100
most influential people in world in 2007 and 2008. Forbes
named her the most powerful women in 2008. On the 7th of
October 2010 forbes magazine ranked her the 6th most
power full woman in world.

Honours, Awards and International Recognition:

Forbes magazine ranked Nooyi fourth on the 2008 and 2009

list of The World’s 100 most Powerful Women. Fortune
magazine has named Nooyi number one on its annual
ranking of most powerful women in business for 2006 ,
2007, 2008, 2009, and 2010. In 2008 Nooyi was named one
of America’s Best leaders by U.S. new & world report. In
2008 she was elected to the fellowship of the American
Academy of arts and Sciences.
In January 2008, Nooyi was elected chairwomen of the US –
India Business council. Nooyi leads USIBC’S Boards of
DIRECTORS, an assembly of more than 60 senior executive
representing a cross –section of American Industry.

Indra Noyi has been named 2009 Ceo of the Year by Global
supply chain Leaders Group.
In 2009, Nooyi was considered one of “The TOPGUN Ceos’
ny Brendan wood international, an advisory agency. In 2010
She was named 1 on 11

Awarding
Year Name
organization Fortune’s list the
“50 most powerful
Wake Forest women and 6th on
2011 Honorary Doctor of Laws
University.
forbes list of the
World’s 100 most
University of powerful women”
2011 Honorary Doctor of Laws
Warwick.
After five years on
Honorary Doctorate of top , PepsiCo ‘s
2011 Miami University.
Law Indian American
chairman and CEO
Honorary Doctorate of Pennsylvania State Indra Nooyi has
2010
Humane Letters University. been pushed to the
second spot as most
2009 Honorary Degree Duke University. powerful women in
US business by
2009 Barnard Medal of Honor Barnard College. Krafats CEO.

New York
2008 Honorary Degree
University.
 12

2007 Padma Bhushan President of India.

2004 Honorary Doctor of Laws Babson College.

Memberships and Associations

Indra Nooyi is a successor fellow of to Yale corporation she

serves as a member of the foundation boards of the World
Ecnomic Forum . International Rescue committee catalyst
and the Lincoln Center for the performing Arts. She is also a
member of the Boards of trustees of Eisenhower
Fellowships. And has served as chairperson of US India
business Council.

Indra Nooyi serves as an Honorary Co-Chair for the World

Justice Project. The World Justice Project works to lead a
global, multidisciplinary effort to strengthen the Rule of Law
for the development of communities of opportunity and
equity.

13

History Pepsi & Coke

Pepsi-Cola was founded in 1904 by Caleb Bradham, the inventor of the

now popular carbonated drink. In six short years later, there were almost
three hundred bottlers in three states alone. By 1923, the company went
bankrupt after sugar prices skyrocketed. In 1931, Charles Guth’s Loft
Candy Company bought the company. The new owners doubled the
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. Pepsi’s 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 wide-
variety of bottled drinks. Between Canada and the United States, seventy-
five percent of the company’s 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 world’s 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
integrity.” (Hoover’s Online)

Target Markets
1. The target market for juices, water, and (sometimes) soda: Mostly all
people who are looking for a convenient drink.
2. The target markets for ready-to-drink coffee and energy drinks: Workers
and college kids.
3. The target market for sports drinks: athletes

4. The target market for convenient foods (vending machine food): offices,
hospitals, schools
16
5. The target markets for ready-to-eat meals/cereal: single parents, busy
families, and college kids.
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-A-
Roni. 17
Price: convenience food and bottled drinks
• Bottled drinks: The range from the cheapest to the most expensive is
$1.50-$6.99. This is based on current advertisements. There are many ways
that drinks are sold-twenty ounce bottles, twelve packs, twenty four packs,
etc. The previous range included all ways that the drinks are sold.

• Foods: Bagged Snacks-snack size: about $1; family size: about $3; Dips-
about $4; Cereals-about $3-6; Rice and side dishes-about $2-5
Place: Grocery Stores, restaurants, vending machines, and concession
stands nationwide. Pepsi Headquarters is located in Somers, New York.
Promotion: TV commercials, products appear on TV shows and movies,
newspaper and magazine advertisements, and coupons. A specific television
commercial stared Britney Spears and Halle Berry, Pepsi brands have
appeared in coupons in the Valley News Dispatch and the Clipper
magazine. Kings family restaurants and Taco Bell serve Pepsi products in
their fountain machines.
18
Marketing environment
Microenvironment and the Five Forces of Competitive Position

1. Threat of New Entrants=this would effect Pepsi’s 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
One, who produces a substitute product,.
5. Nature of Rivalry= Coca Cola industries is the number one competitor of
Pepsi

Microenvironment and the sub-environments that affect companies

1. Economic: now that the United States is in a recession, almost the entire
rest of the world is, too. Everyone now has less money so everyone is
buying less of everything and only what is necessary. This is due to income
reduction and unemployment rates.

2. Social and cultural: This has little effect on Pepsi-everyone still loves the
drink no matter what their age or social class is.

3. Competitive: Coca Cola is Pepsi’s top competitor.

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

• Has partners and alliances

• Up-selling products in connection with health good craze

Disadvantages:

• New entrants into the bottled beverage and convenient food market

• Top competitor is number one seller of bottles beverages

• Recession

• Must abide by FDA regulations

• Carbon emissions limits

• Most sales are domestic, although product is sold internationally

• Soft drink sales are low because of health food promotion

• Rising resource prices

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: Pepsi’s mission statement is firm and to the point. It
stresses the company’s 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: Pepsi’s SWOT analysis has eight strengths and
opportunities and six weaknesses and threats. This shows that Pepsi is well-
run and productive.
LCVP Analysis: This part of the marketing strategy sums up the SWOT
analysis.

As listed above, there are many things that make Pepsi’s marketing strategy
so effective. Although, there are things that could be improved to make
 24

Pepsi’s marketing strategy much better. These will be listed below:

New Marketing Environment:

The microenvironment is not in Pepsi’s favor. An example of this is the fact
that most of the world is suffering in a recession which causes people to
have less money to spend on some of the things they enjoy. Also, Coca-
Cola is Pepsi’s top competitor, which is a huge downfall for the sales of
Pepsi’s products. Finally, the technological aspect of the marketing
environment has room for improvement. There are limits on carbon
monoxide emissions due to the “going green” phase the country is going
through.
SWOT Analysis: The weaknesses displayed in the SWOT analysis prove
that Pepsi needs to focus a little more on international sales and healthier
beverage and convenient food items. Also, this again mentions the
recession.
LCVP Analysis: The weaknesses and threats linked together create
problems. These problems need to be fixed in order for Pepsi to improve
their company.
 25

Recommendations for Pepsi:

I feel that Pepsi does a great job with everything involved in running a
multi-million dollar business. The way they promote their products is
excellent as well as how the corporation is international is very effective.
There are a few things that I can recommend to Pepsi:

• First of all, since most of the world is currently suffering from recession,
Pepsi should strive to find cost-cutting solutions to keep both prices low and
profits high. This would greatly help move Pepsi in the direction of
becoming the number one selling of bottled beverages and convenient
foods. That fact addresses another problem of Coca-Cola being Pepsi’s
number one competitor-the top seller of bottled beverages. Pepsi should
create strong advertisement campaigns and slogans to further promote the
success of their products.

• While “going green” is a very beneficial movement in this economy, it is

making Pepsi work harder to keep efficiency and effectiveness at its best. I
would recommend to Pepsi that their company needs to find a way to keep
their carbon emissions in check with federal regulations and purchase
“green” equipment. Since many “green” machines are also more efficient
than others, Pepsi will probably end up getting more out of their money in
the long run even if it means laying out a little extra cash now.
 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

PepsiCo Marketing Mix:

In 1965 Herman W. Lay of the Frito-Lay Company and

Donald Kendall of Pepsi-Cola formed PepsiCo. In 1986
operations were combined under PepsiCo Worldwide Foods
and PepsiCo Worldwide Beverages. In 2001 PepsiCo merged
with Quaker Oats to form a $25 billion company. PepsiCo
restructured in 2007 dividing the company into three units’
food in the US, Drinks concentrated in the US and Food and
Drinks marketed abroad.

Marketing Plan of PEPSI:

Initially Pepsi was used as cough syrup in America, and sold

in pharmacy. But t he t a st e o f t ha t sy r u p w a s l iked b y
t he p e o p l e a nd t he n a d d e d w a t er a nd carbonation
and with the passage of time it is used as a regular drink
and now it is world largest soft drink brand. In beverage
sector pioneer is Coca cola and Pepsi is follower. In 1909
more than 24 American States gave license to Pepsi for
sale. Pepsi Cola was fi rst introduced in 6.5 ounce
bottle. Pepsi was fi rst registered in 1932.In 1932 Pepsi Cola
was introduced a big bottle of 12 ounce. In 1950, the Pepsi
Cola formula was slightly changed and the sweetness and calories
in Pepsi Cola were decreased. In 1957, the bottle was changed to
new attractive bottle and the product line was also increased
by introduction of two more products that were Teem and
Marinda.

28

Pepsi Co. is one of the biggest and spenders in India. It

is also one of the biggest global ad spenders. It has
long a list of endorsers from pop star Ricky martin to
fi le stars Shahrukh Khan, Amitabh Bacchan etc. &
Crickets t a r s S a ch in Ten d u l ka r , V. V. S La x m a n,
H ar b h aj an S in g h et c . Hi nd us t a n T h o m p so m
A ss o c ia t e s , t h e b ig g e t s a d v e r t i si n g a g e nc y o f
I nd ia ha s t he account of Pepsi Co. is known for its board
cast advertising but it also spends a lot in non board cast
advertising i.e. hoarding, banners, posters stickers,
specialties, hangar, dealer board, glow signboards,
wall painting and newspaper. The expenses on this
type of advertising are made at territory run it level.
LUCKNOW territory has assigned two local advertising
agencies R.D. Associates and Krishna for its territorial
advertising
 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. Coke’s basic strength is its brand name and Coke’s 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.

COCA COLA IN PAKISTAN

The Coca-Cola Company began operating in

Pa k i s t a n i n 1 9 5 3 . C o c a - C o l a , Fa n t a a n d Sprite are
the brands in Pakistan. The Coca-Cola System in
Pakistan operates through eight bottlers, four of which
are majority-owned by Coca-Cola Beverages Pakistan
Limited (CCBPL). The CCBPL plants
are in Karachi, Hyderabad, Sialkot,
Gujranwala, Faisalabad, Rahimyar Khan, Multan
and Lahore. The remaining
two plants, independently owned,
arei n R a w a l p i n d i a n d P e s h a w a r .

30

T he C o c a C o l a S y st em i n Pa k i s t a n s er v e s 7
0 , 0 0 0 customers/retail outlets. The Coca-Cola System in
Pakistan employs 1,800 people. During the last two years,
The Coca-Cola System in Pakistan has invested over $130
million (U.S.)49 years of refreshment in Pakistan

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 customer’s
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 brand’s equity.

Brand equity is one of the more popular concepts in marketing today. It is

also one of the most used terms in marketing research, and the subject of
much fuzzy thinking. In fact, there are several definitions of brand equity,
all of which stem from the concept of 'brand.'
 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.
Fundamentally, high levels of brand awareness and a positive brand image
should increase the probability of brand choice. That is the fundamental
goal of managing one's brand.

Brand equity only exists as a function of consumer choice in the

marketplace. And although marketing and communications efforts can
create and change brand images, brand equity comes into being when a
consumer chooses a product or service

32

EMPLOYMENT OPPORTUNITIES:
Pepsi provides direct and indirect employment to person in
supplying it’s 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:
It estimated that Pepsi-co and its franchises generates over
Rs.500 crore (in 1977) by collection of excise duty and sales
tax.

MARKET SHARE IN INDIA

These two soft drink companies (Coca cola & Pepsi) acquire
the major share of the soft drink Industry and always remain
in the war to get the majority of market share with each
other. These companies always be pioneer in using various
innovative technology and method to become the market
leader. These companies present the world new innovative
ways of doing the marketing and how take advantage of
various opportunities and how to use your strength in a
better way. In India currently colas (carbonated soft drinks)
products comprises 61% and non-cola segment constitutes
36% of the total soft drink market whereas 2% is covered
under other various drinks like apple juice, cold coffee, cold
tea etc.
34

: 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.
Besides its namesake Coca-Cola beverage, Coca-Cola
currently offers nearly 400 brands in over 200 countries or
territories and serves 1.5 billion servings each day.
The company operates a franchised distribution system
dating back to 1889 where The Coca-Cola Company only
produces syrup concentrate which is then sold to various
bottlers throughout the World who hold an exclusive
territory.
The Coca-Cola Company is headquartered in Atlanta,
Georgia. Its stock is listed on the NYSE and is part of DJIA
and S&P 500. Its current president and CEO is Muhtar Kent.
The Coca-Cola Company was originally established as the J.
S. Pemberton Medicine Company, a Co-partnership between
Dr. John Smith Pemberton and Ed Holland. The company was
formed to Sell three main products: Pemberton's French
Wine of Cola (later known as Coca-Cola),
Pemberton's Indian Queen Hair Dye and Pemberton's Globe
Flower Cough Syrup.

In 1884, the company became a stock company and the

name was changed to Pemberton Chemical Company. The
new president was D. D. Doe while Ed Holland became the
new Vice-President Pemberton stayed on as the
superintendent. Company’s factory was located at No. 107,
Marietta St.
Three years later, the company was again changed to
Pemberton Medicine Company, another copartner ship, this
time between Pemberton, A. O. Murphy, E. H. Blood worth,
and J. C. Mayfield.
Finally in October 1888, the company received a charter
with an authorized capital of $50,000. The
Charter became official on January 15, 1889. By this time,
the company had expanded their
Offerings to include Pemberton's Orange and Lemon Elixir.

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

On August 5th, The Center for Science and Environment

(CSE), an activist group in India focused on environmental
sustainability issues (specifically the effects of
industrialization and economic growth) issued a press
release stating: "12 major cold drink brands sold in and
around Delhi contain a deadly cocktail of pesticide residues"
According to tests conducted by the Pollution Monitoring
Laboratory (PML) of the CSE from April to August, three
samples of twelve PepsiCo and Coca-Cola brands from
across the city were found to contain pesticide residues
surpassing global standards by 30-36 times
includinglindane, DDT, malathion and chlorpyrifos (See
Exhibit 2). These four pesticides were known to cause
cancer, damage to the nervous and reproductive systems,
birth defects, and severe disruption of the immune system.
In reaction to this report, the Indian government banned
Coke and Pepsi products in Parliament and state
governments launched independent investigations, sending
soft drink samples to labs for testing. The Coca-Cola Bottling
Company (Coke) stock dipped by five Dollars on the New
York Stock Exchange from $55 to $50 in the six sessions
following the August 5 disclosure, as did shares of Coca-Cola
Enterprises (CCA).

Pepsi and Coca-Cola called the CSE allegations “baseless”

and questioned the method of testing but the CSE claimed it
had followed standard procedures documented by the US

37
Environmental Protection Agency including Gas
Chromatography and Mass Spectrometry.
Pepsi’s own tests conducted at an independent laboratory
showed no detectable pesticides and led Pepsi to file a
petition with the high court questioning the credibility of the
CSE’sclaims while Coke’s Gupta commented: “The
allegation is serious and it has the potential to tarnish the
image of our brands in the country. If this continues, we will
consider legal recourse.”

Despite Coke and Pepsi’s early responses denying the

validity of the CSE’s claims and threatening legal action, a
survey conducted in Delhi a few days after the CSE
announcement found that a majority of consumers believed
the findings were correct and agreed with parliament’s
move to ban the sale of soft drinks.

It was clear that the $1 billion Indian soft drink market was
at stake and Gupta had to act.

38
International expansion
Coke’s first international bottling plants opened in 1906 in
Canada, Cuba, and Panama. By the end of the 1920’s Coca-
Cola 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 Woodruff’s insistence that Coca-Cola wouldn’t “suffer
the stigma of being an intrusive American product,” and
instead would use local bottles, caps, machinery, trucks,
and personnel contributed to Coke’s challenges as well with
a lack of standard processes and training degrading quality.
Coca-Cola continued working for over 80 years on
Woodruff’s goal: to make Coke available wherever and
whenever consumers wanted it, “in arm’s 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. Woodruff’s 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 Coke’s 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.
 39

Turn of the Century Growth Imperative The 1990’s brought a

slowdown in sales growth for the Carbonated Soft Drink
(CSD) industry in the United States, achieving only 0.2%
growth by 2000 (just under 10 billion cases) in contrast to
the 5-7% annual growth experienced during the 1980’s.
While per capita consumption throughout the world was a
fraction of the United States’, major beverage companies
clearly had to look elsewhere for the growth their
shareholders demanded. The Coca-Cola India no. 1-0085
looming opportunity for twenty-first century was in the
world’s developing markets with their rapidly growing
middle class populations.
 40

ATUL Singh, CEO Coca Cola India elected

Chairman of AMCHAM:

Mr. ATUL Singh, the President and Chief Executive Officer

(CEO) of Coca-Cola. India was today unanimously elected as
the Chairman of the American Chamber of Commerce
(AMCHAM) in India. This was announced in the 16th annual
general meeting of AMCHAM India held in the capital today.
Mr. Virat Bhatia, the Managing Director of telecom biggie AT
& T and Mr. Shyamal Mukherjee, Director, Price Water House
Coopers (PWC) were also elected as the vice-chairman of
AMCHAM India’s Board of Directors. Mr. T P Chopra, who is
the president and CEO of GE India, was also elected to the
board for the year
The new Telecom junior minister Jyotiraditya Scandia
addressed the American business during the AMCHEM AGM
today.
Calling for further participation of US Companies in inclusive
and sustained growth of India by ensuring that every dollar
invested was used for social reforms irrespective of rural –
urban and income inequality divide, Mr Jyotiraditya Scindia
said there was a need for India to sustain its high growth
pattern over a longer period in order to maintain its
economic momentum. Mr. Scindia was addressing the
Annual General Meeting of
American Chamber of Commerce (AMCHAM) held in the
capital today.
―The country is today experiencing approximately 8%
growth rate year over year. We need to ensure that the rate
of growth is sustained over a longer period of time, Mr.
Scindia said. Citing 41

Citing example he said that the US has witnessed 3 -3.5%

sustained growth over last 100years. It is this compounded
growth that has resulted in US becoming the superpower it
is today. ―India should follow this strategy and ensure that
the growth is sustained over a longer period and this could
be possible only if economic growth travels to every nook
and corner of the country.‖
Mr. Scandia said that the government was taking steps to
reign in inflation which would see a dip over the next 2 -3
months. The inflation was mainly due to subprime crisis in
US and the increase in fuel and food prices in the
international market.
Speaking on the occasion, Mr. Steven J White, US Charge
d’Affairs, US Embassy said that greater market and trade
access between India and US would help in accelerating the
growth in the two countries. He said that increase of US
investment in India by 33% during the year 2007 was a step
in the right direction. It was important that similar
excitement was maintained during the current
year as well especially in sectors like finance, trade, energy,
education, health and agriculture.

42

OVERVIEW ABOUT COCA-COLA

Every person who drinks a coca-cola enjoy moment of
refreshment
And shares an experience that millions of others have
savored. All of those individual experience combined have
created a worldwide phenomenon – a truly global brand. The
Coca-Cola Company, nursing the global community with the
world largest selling soft drinks since 1886, returned to India
in 1993 after a grape of 16 years giving new thumbs up to
Indian soft drink market. In the same year, the
company took our ownership of the nation’s top soft drink
market brands & bottling market. No wonder
Our brands assumed an iconic status in mind of consumers.
Coca-Cola serves in India some recalled brands across the
world including name such as Coca-Cola, diet coke, Sprite,
Fanta, Thums-up, Limca,Maaza & Kinely (packaged drinking
water).The biz.system of coca-cola in India directly employs
approximately 6,000 people, & indirectly creates
employment for many more related industries throw our
wash procurement , supply and distribution system. The
vast Indian operations comprise 25 companies owned
bottling operations &24 franchises –owned bottling
operations. The apart a network of contract packers also
mfg. a range of the product for company. On the distribution
front, 10 tone trucks, open-bay three wheelers that can
navigate the narrow alleyways of Indian cities, ensure that
our product available in each corner of the country. The coca
cola is responsible for the mfg. distribution & sales of
product across the country. A career in coca-cola is truly one
kind of experience. Come @ Coca-Cola and taste the life. It
is with enjoyment.

Coca-Cola is one of the most widely used soft drink in the

world. The company has very efficient and extensive
distribution system in the world. There is a great variety of
brands offered by Coca-cola throughout the world like Diet
coke, sprite, Fanta, Rc cola, Minute made etc. you can find
the Coca-cola soft drinks anywhere in every country of the
world. 43

The 'Coca-Cola' brand has been adopted the strategy of

global marketing. They are considering the whole world as
single market place and uniform marketing strategy was
being used Coca-cola for many years, but now the trend is
changing and different marketing campaigns are being
designed for different regions of the world. . Business
decisions are made on a domestic basis to fit in with the
culture and needs of the domestic community. In 1919 Coca-
Cola decided it was time to go global. The Coca-Cola
Company decided to take its operations beyond national
boundaries and marketing research was started in central
America, china and many other countries of the world.

Because of successful and efficient marketing research

Coca-cola was able to produce globally in different regions
of the world.
Coca-cola has got such an intensive distribution and bottlers
system that its products are available everywhere in the
world, starting from Middle East to Australia. You can find
coca cola product on every retail outlet
There are many reasons why company decided to sell its
product in international market. The prospect exists to sell
'Coca-Cola' worldwide, because 'Coca-Cola' is a product
which can be used by everyone irrespective of age and
gender, all over the world. Marketing globally demand the
company to have a marketing team in line with a country's
consumers so effective sales can be made and good
relations with the abroad key employees can be maintained.
If we look on advertising perspective of Coca-cola,
advertising has created a demand for 'Coca-Cola' worldwide.
However, advertising has to be in line with the domestic
culture. An adapted marketing mix means adjusting the mix
with the prevailing culture, geographic, economic and other
differences in different countries. Different languages and
cultures caused problems.
44
In addition, according to Batman, et. al, Coca-Cola’s bottling
system is one of their greatest strengths. It permits them to
do their business on a global scale while at the same time
maintain a national approach. The bottling companies are
domestically owned and operated by independent business
people who are authorized to sell products of the Coca-Cola
Company. Because Coke does not have complete ownership
of its bottling network, its main source of revenue is the sale
of concentrate to its bottlers (Batman, et. al, 1998).

Brand image is the significant factor affecting Coke’s sale.

Coca-Cola’s brand name is very well known all over the
world. Packaging changes have also affected sales and
industry positioning, but in general, the public has tended
not to be affected by new products. Coca-Cola’s bottling
system also allows the company to take advantage of
infinite growth opportunities around the world. This strategy
gives Coke the opportunity to service a large geographic,
diverse, area. (Arthur A. Thompson Jr., A. J, 2005)
Now there is the threat of new vital competitors in the
carbonated soft drink industry is not very extensive. The
threat of substitutes, 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, juices, milk, and hot chocolate.

45
Even though Coca-Cola and Pepsi control nearly 40% of the
entire beverage market, the changing health-awareness of
the market could have a serious affect. Of course, both Coke
and Pepsi have already diversified into these markets,
allowing them to have further significant market shares.
The increasing health consciousness and emphasis of
healthy lifestyle not only in developed nations, but also in
developing nations, have slowed down the sales of Coca-
Cola’s carbonated soft drinks. In response to this health
consciousness issue, the company introduced Diet Coke in
1982. Such change of consumer life style had also led to the
introduction of its bottled purified water. (Murden, Terry,
2005)
‘Coca-Cola’s’ brand personality reflects the positioning of its
brand. The process of positioning a brand or product is a
complex managerial task and must be done over time using
all the elements of the marketing mix. Positioning is in the
mind of the consumer and can be described as how the
product is considered by that consumer. When researching
the positioning of a product, consumers are often asked how
they would describe that product if it were a person. The
purpose of this is to develop a character statement. This can
ensure that consumers have a clear view of the brand
values that make up the brand personality, just like the
values and beliefs that make up a person. Many people see
‘Coca-Cola’ as a part of their daily life.
 46

This similarity between the brand and the consumer leads to

a high degree of loyalty and makes the purchasing decision
easier.
It is of a lot importance to create the right brand image that
closely in lines with the consumers’ life experiences and
feelings. Sponsorship is one way of building these
associations (Arthur A. Thompson Jr., A. J, 2005). Through
events such as ‘Coca-Cola’s’ Form and Fusion Design
Awards and sporting events a brand manager can ensure
that its product image is made relevant to the target
audience. An element of the marketing mix that involves
making aware the customers. The promotional mix will often
include sales promotion, advertising, direct selling and
public relations elements
The progress and advancement in the field of technology in
the fields of soft drink raw material, production,
manufacturing, information and communication technology
and logistics have great positive impacts on the operations
and sales of Coca-Cola. The availability of new soft drink
ingredients enables Coca-Cola to introduce new variety of
its products to its existing consumers, not forgetting to
attract the new consumer groups. The use of the latest
information technology has made able the company to
attract the new generation of soft drink consumers with the
latest features of song downloading. Also the existence of
company website has enabled the world to be in touch with
the latest progress, promotions and offers of Coca-Cola.
 47

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.

 48

VISION
OF
COCA-COLA

Profit : Maximize the return of shareholder.

People : Establish a great place to work where people

are inspired to theBest they can do.

Portfolio : Bringing to the world a portfolio of bevera

ge brands thatAnticipate and safely people’s desire &
need.

Partners : nurturing a winning network of partners &

building a mutual Loyalty.

Planet : Being a responsible global citizen that makes

a difference
49
 50

OBJECT OF THE WORK

Consumption of soft drinks has increased

tremendously in India. Every age of group like it, now
days it become a household necessary item. In field of
marketing many kind of surveys are conducted by
Coca-Cola team time to time. This is end & last
feedback for any kind of organization By the specific
survey, which was conducted by Coca-Cola organization
want to know about the right picture of market.

Marketing variables

1. Display items 2.Visicoolers

 Sales Promotion variables

1. Discount for retailers. 2. Scheme for retailers

51

Brand Localization Strategy: The Two India’s

India A: “Life ho to aisi”
“India A,” the designation Coca-Cola gave to the market
segment including metropolitan areas and large towns,
represented 4% of the country’s population.

This segment sought social bonding as a need and

responded to aspiration messages, celebrating the benefits
of their increasing social

and economic freedoms. “Life ho to aisi,” (life as it should

be) was the successful and relevant tagline found in Coca-
Cola’s advertising to this audience.
India B: “Thanda Matlab Coca-Cola”
Coca-Cola India believed that the first brand to offer
communication targeted to the smaller towns would own the
rural market and went after that objective with a
comprehensive strategy. “India B” included small towns and
rural areas, comprising the other 96% of the nation’s
population. This segment’s primary need was out-of-home
thirst-quenching and the soft drink category was
undifferentiated in the minds of rural consumers.
Additionally, within average Coke costing Rs. 10 and an
average day’s wages around Rs. 100, Coke was perceived
as a luxury that few could afford.
52

In an effort to make the price point of Coke within reach of

this high-potential market, Coca-Cola launched the
Accessibility Campaign, introducing a new 200ml bottle,
smaller than the
traditional 300ml bottle found in urban markets, and
concurrently cutting the price in half, to Coca-Cola India no.
1-0085 Rs. 5. This pricing strategy closed the gap between
Coke and basic refreshments like lemonade and tea, making
soft drinks truly accessible for the first time. At the same
time, Coke invested in distribution infrastructure to
effectively serve a disbursed population and doubled the
number of retail outlets in rural areas from 80,000 in 2001
to 160,000 in 2003,increasing market penetration from 13
to 25%.

Coke’s advertising and promotion strategy pulled the

marketing plan together using local language and idiomatic
expressions. “Thanda,” meaning cool/cold is also generic for
cold beverages and gave “Thanda Matlab Coca-Cola”
delicious multiple meanings. Literally translated to “Coke
means refreshment,” the phrase directly addressed both the
primary need of this segment for cold refreshment while at
the same time positioning Coke as a “Thanda” or generic
cold beverage just like tea, lassi, or lemonade. As a result of
the Thanda campaign, Coca-Cola won Advertiser of the Year
and Campaign of the Year in 2003

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
doubled between 2001-2003. This market accounted for
80% of India’s new Coke drinkers, 30% of 2002volume, and
was expected to account for 50% of the company’s sales in
2003. 2001-2003. This market accounted for 80% of India’s
new Coke drinkers, 30% of 2002volume, and was expected
to account for 50% of the company’s sales in 2003.

Marketing strategy of coke:

SEGMENTATION OF MARKET

A market segment consists of a group of customers who

share a similar set of needs and wants. Rather than creating
the segment the marketer’s task is to identify them and
decide which one to target. Leading soft drink companies
Coca-Cola and Pepsi follow the similar segmentation
strategy for target marketing.

54

MASS MARKETING

However in some of its popular product both the companies

follow the mass marketing strategy. In this type of
segmentation, companies target the whole market and not
any particular segment of the population.

TARGETED MARKETING

Although the targeted group of the company is the whole

population, they want to earn more revenue from a segment
than their other revenue generator sources. For this, they
recognize following bases for segmentation

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

RURAL VS. URBAN MARKET

Coca-Cola Company is one of the first global majors to have
spotted the potential spin offs from the country’s rural
market. Population of Rural sector is more conscious more
about the price whereas Population of Urban sector is more
conscious about the quality and brand name of the product.
Coca cola and PepsiCo in Year 2002 bring the 200 ml
bottleat Rs.5 specifically targeted at the rural sector so that
soft drink can take place of the local drink like lemon,
sugarcane juice and Tea etc.Both the companies Coca-Cola
and PepsiCo have adopted different marketing strategy
forrural and urban areas.

DEMOGRAPHIC SEGMENTATION

AGE

India is considered to be a young country i.e. average age of

Indian population is less 38years. Thus targeting young
generation can be a beneficial marketing strategy for soft
drink companies. In fact this is the case, all the major
brands like Pepsi, coca cola, and thumps up, mainly target
younger generation in India. In Europe, as average
population is older than Asian countries, Coca cola targeted
the older generation of the population. Similarly in USA,
Pepsi targeted the generation X (younger generation) as
they comprises majority of the population and they
positioned Pepsi in the mind of youth that Pepsi is for the
youth

56
GENDER

Gender based segmentation is very important. As taste of

male and female is different. Let’s 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

COCA COLA PRODUCT

The Coca-Cola Company has more than 2800 products in

over 200 countries. From Inca Kola, a sparkling beverage
found in North and South America, and Samurai, energy
drink available in Asia; to Vita, an African juice drink, and
BonAqua, water found on four continents, their product
variety spans the globe…

The various products of Coca-Cola available in India are:

Coca-Cola: Coca-Cola is the most popular and biggest-

selling soft drink in history, as well as the best-known
product in the world. Available in the following flavors: Cola,
Cola Green Tea, Cola Lemon, Cola Lemon Lime, Cola Lime,
Cola Orange and Cola Raspberry.

57
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.
 58

Sprite: Introduced in 1961, Sprite is the world's leading

lemon-lime flavored soft drink. Sprite is sold in more than
190 countries and ranks as the No. 4 soft drink worldwide,
with a strong appeal to young people. Millions of people
enjoy Sprite because of its crisp, clean taste that really
quenches your thirst. But Sprite also has an honest,
straightforward attitude that sets it apart from other soft
drinks. Sprite encourages you to be true to who you are and
to obey your thirst.

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
automatically hundreds of bottles washed and cleaned.
Bottle is led by conveyer to the filling machine unit, where
the ready soft drink mixture is put in 800 bottled per
minute. Simultaneously through an automatic system all
the bottle is crowned with the help of crowning machine.
59

The ready to go the market bottles are then passed through

aggressive inspection and collected into carats (1 carats
contains 24 bottles) with the help of automatic case packer
machine.
After that pet containing soft drinks are sent to the
warehouses and immediately the payment of the excise
duty to the Govt. For packed bottle kept in the warehouses
are insured and, ultimate stage of the production line is to
dispatch it. The product reaches into the market through a
network of distribution system.
 60

COCA COLA & PEPSI

BOARD OF DIRECTOR
MANAGING DIRECTOR
DIRECTOR
CEO
FINANCE PLANT P.A.M
H.R
MANAGER MANAGER MANAGER
MANAGER
A/C ASSISTANT SHIFT SHIPPING
H.RENGINEER
COORDINATOR
EXECUTIVE
 A/C WORKER
H.R
CLERK OPERATORS
ASSISTANT
T.D.M M.E.M M.D.M
Q.C.M
A.D.C SINIOR M.D.C
Q.C
TECHNICIAN EXECUTIVE
C.E TECHNICIAN M.E
CHEMIST

61

SOFT DRINKS INDUSTRIES IN

INDIA
Soft drink is a non alcoholic beverage. It is artificially
flavored and contains no fruit juice or pulp. India with
population of more than 100 crore is one of the largest
consumer markets in the world after china. Soft drink is a
typical consumer product purchased by individuals to
quench thirst and secondly for refreshment.
Searching for the point of origin of Indian soft drinks I first
document on Gold Spot, this was the First brand soft drinks
in India. It was introduced by PARLE during later part of 40’s.
Cola giant,
Coca-Cola was the first foreign soft drink to be introduced in
India in 1965, Coca Cola made a very good beginning and
dominated the whole scheme right from the world go. It
(coca-Cola) faced no competition at that time .
This extraordinary success of soft drinks can be attributed to
the following factor:
Absence of contemporary brand.
Europe image build up in the western countries proceeded
the entry into India market, Indians are very found by
nature of foreign goods, services etc. Due to prolonged
foreign rules.
Parle export Pvt. Ltd later in 1970 introduced Limca, lemony
soft drinks. Before Limca introduced they had tentatively
introduced cola, pepino, which they had to with draw in the
face of battering confrontation with coca-cola soon.
62
India always has love and hate relationship with MNC’s
which gave a significant opportunities to soft drinks
industries in India when coca-cola decided to windup its
operation in 1977 rather than

Bowing to the Indian government insisting on:-

Dilution of equity, as the government felt that lots of foreign

currency was being wasted.
Manufacturing of the top – secret concentrate in India.
Disclose of the chemical composition of the essence.
This left a large vacuum in the popular soft drink market,
and a visa was opened to any company with the requisite,
technical, marketing and organizational skills. The existence
of Coca-Cola from India in 1977 accelerated the growth of
several Indian soft Drinks. New soft drink in the form of Tetra
pack enters the market among Frooti, Jump-In, and Tree-top
Ire the prominent once. Till 1977 their equipped bottling
plants and the distribution network a longing to be of no
use. It took them one year to develop new formula to
survive and gradually came up with Campa, Lemon, Orange
and Coal in same order.

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.

64
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.

This paper tries to throw some light on the following

aspects: -
Genre wise and channel wise composition of advertising
on TV
Advertising strategy adopted by the aerated soft drink
players on TV and press Zone wise and genre wise
advertising on press
Specific case: zone wise and genre wise advertising for
Pepsi and Coke
Channel wise and genre wise composition of advertising on
TV 65

Genre wise axis on aerated drinks establishes that this

category is heavily advertised on feature films, music,
cricket and soaps. Major part of the advertising on Cricket
can be attributed to the fact that Pepsi was the official
sponsor of the Cricket World Cup 2003. However, apart from
cricket.
Pepsi is actively present on other types of sports such as
soccer, wrestling etc.

Exhibit 1
On the other hand, 10 per cent of advertising of aerated
drinks is concentrated on music channels, Channel
66

V and MTV scores over others, where Coke has a significant

share

EXHIBIT 2
Brand portfolio

Name
Launched Note Picture
Discontinued
Coca-Cola 1886

Caffeine-
Free Coca- 1983
Cola

Coca-Cola
1985
Cherry

Still available in:

American Samoa, Austria, Australia,

Coca-Cola Belgium, Brazil, China, Denmark,
2001 2005
with Lemon Federation of Bosnia and Herzegovina,
Finland, France, Germany, Hong Kong,
Iceland, Korea, Luxembourg, Macau,
Malaysia, Mongolia, Netherlands,
Norway, Reunion, Romania, Singapore,
South Africa, Spain, Switzerland, Taiwan,
Tunisia, United Kingdom, United States,
and West Bank-Gaza

Still available in:

2002 2005
Coca-Cola Austria, Australia, China, Germany, Hong
Vanilla Kong, South Africa, New Zealand (600ml
and 350 ml only) Malaysia, Sweden
2007 (ItImported) and Russia in June 2007
was reintroduced
by popular demand
Coca-Cola Was only available in Japan,
2004 2007 Canada, and the United
C2
States.
Coca-
Cola 2005 ilable in Belgium, Netherlands,
Singapore
Li m e

Coca- June
Cola End of Was only available in New Zealand.
2005 2005
ry

Coca-
Cola 2005
Zero

Coca- 2005 ilable in Federation of Bosnia and

Cola Herzegovina, Germany, Italy,
M5 Spain, Mexico and Brazil
Coca- Middle
Cola 2006 of Was replaced by Vanilla Coke in June
2007
Black 200
Cherry 7
Vanilla
Only available in the United States,
Coca- Beginnin France, Canada,
Cola 2006 g of
Czech Republic, Slovak Republic,
Belk 200
8 Federation of Bosnia and
Herzegovina, Bulgaria and
Lithuania

Coca- 2006 ilable in Federation of Bosnia and

Cola Herzegovina, New Zealand and
Citra Japan.
Coca- 2006 ilable in France and Belgium.
Cola
Sango
Coca-
Cola 2007 le in the United Kingdom and
Gibraltar
Orange

69
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 Coca-
Cola Company purchased the brand in 1999. In Sweden, Julmust outsells
Coca-Cola during the Christmas season.[43] In Scotland, the locally-
produced 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,
[ 45] The Coca-Cola
Company purchased Thums Up in 1993. As of 2004, Coca-Cola held
a 60.9% market-share in India. Tropicola, a domestic drink, is served in
Cuba instead of Coca-Cola, 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 非常可
乐 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
Robinson’s drinks.

70
 Sponsorship of sporting events

Coca-Cola was the first-ever sponsor of the Olympic games, at the 1928
games in Amsterdam and has been an Olympics sponsor ever since.[59]
This corporate sponsorship included the 1996 Summer Olympics hosted in
Atlanta, which allowed Coca-Cola to spotlight its hometown. Since
1978 Coca- Cola has sponsored each FIFA World Cup and other
competitions organized by FIFA. In fact, one of the FIFA tournament
trophy: FIFA World Youth Championship from Tunisia in 1977 to Malaysia
in 1997 was called "FIFA — Coca Cola Cup".[60] In addition, Coca-Cola
sponsors the annual Coca-Cola 600 and Coke Zero 400for the NASCAR
Sprint Cup Series at Lowe's Motor Speedway in Charlotte, North Carolina
and Daytona International Speedway in Daytona, Florida. Coca-Cola has a
long history of sports marketing relationships, which over the years have
included Major League Baseball, the National Football League, National
Basketball Association and the National Hockey League, as well as with
many teams within those leagues. Coca-Cola is the official soft drink of
many collegiate football teams throughout the nation.
In India Coca-Cola was one of the official Sponsors of the 1996 Cricket
World Cup.

71
In England, Coca-Cola is the main sponsor of The Football League, a name
given to the three professional divisions below the Premier League in
football (soccer). It is also responsible for the renaming of these divisions
— until the advent of Coca-Cola sponsorship, they were referred to as
Divisions One, Two and Three. Since 2004, the divisions have been known
as The Championship (equiv. of Division 1), League One (equiv. of Div. 2)
and League 2 (equiv. of Division 3). This renaming has caused unrest
amongst some fans who see it as farcical that the third tier of English
Football is now called "League One." In 2005 Coca-Cola launched a
competition for the 72 clubs of the football league — it was called "Win a
Player". This allowed fans to place 1 vote per day for their beloved club,
with 1 entry being chosen at random earning £250,000 for the club. This
was repeated in 2006. The "Win A Player" competition was very
controversial, as at the end of the 2 competitions, Leeds United AFC had
the most votes by more than double, yet they did not win any money to
spend on a new player for the club. In 2007 the competition changed to
"Buy a Player". This competition allowed fans to buy a bottle of Coca-Cola
Zero or Coca-Cola and submit the code on the wrapper on the Coca-Cola
website {www.coca-colafootball.co.uk}. This code could then
earn anything from 50p to £100,000 for a club of their choice. This
competition was favored over the old "Win A Player" competition as it
allowed all clubs to win some money, instead of all the money going to
one winning club.

72
Products and brands

The Coca-Cola Company offers nearly 400 brands in over 200

countries, besides its namesake
Coca-Cola beverage. This includes other varieties of Coca-Cola such
as:

 Diet Coke (introduced in 1982), which uses

aspartame, a synthetic phenylalanine-based
artificial sweetener in place of sugar

 Diet Coke Caffeine-Free

 Cherry Coke (1985)

 Diet Cherry Coke (1986)

 Coke with Lemon (2001)

 Diet Coke with Lemon (2001)

 Vanilla Coke (2002)

 Diet Vanilla Coke (2002)





 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 BlāK (2006)

 Diet Coke Plus (2007)

 Coca-Cola Orange (2007)
74

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. Coca-
Cola 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

 population) for 78% of USA, 98% of Canada and
100% of Great Britain (but not Northern Ireland),
continental France and the Netherlands,
Luxembourg, Belgium and Monaco.
75

40% of Coca-Cola FEMSA, S.A. de C.V. which

produces (by population) for 48% of Mexico,
16% of Brazil, 98% of Colombia, 47% of
Guatemala, 100% of Costa Rica, Ecuador,
Nicaragua, Panama, Peru and Venezuela, and
30% of Argentina.

24% of Coca-Cola Hellenic Bottling Company, S.A.

which produces (by population) for 67% of Italy
and 100% of Armenia, Austria, Belarus, Bosnia-
Herzegovina, Bulgaria, Croatia, the Czech Republic,
Estonia, Greece, Hungary, Latvia, Lithuania,
Macedonia, Moldova, Montenegro, Nigeria,
Northern Ireland, Poland, Rep. of Ireland, Romania,
Russia, Serbia, Slovakia, Slovenia, Switzerland and
Ukraine.

 34% of Coca-Cola Amatil limited which produces

(by population) for 98% of Indonesia and100% of
Australia, Indonesia, New Zealand, South Korea, Fiji
 and Papua New Guinea.

 20% of Coca-Cola Icecap AŞ. which produces (by

population) for 100% of Turkey,Kazakhstan,
Azerbaijan, Kyrgyzstan, Jordan, Syria, Iraq &
Turkmenistan.

76



 27% of Coca-Cola Bottling Co. which is the second

largest Coca-Cola bottler in the United States. The
company was incorporated in 1980, and "its
predecessors have been in the soft drink
manufacturing and distribution business since
1902."

SWOT ANALYSIS OF PEPSI AND COKE

STRENGTHS

Pepsi and Coke has been a complex part of world culture

for a very long time. The products image is loaded with
over-romanticizing and fun; this is an image many people
have taken deeply to heart. Pepsi and Coke are the
extremely recognizable brand, which is the greatest
strength of them. Additionally there Bottling system is
one of their greatest strengths. This allows them to the
conduct business on a global scale while at the sometime
maintain a local approach. The bottling companies are
locally owned and operated by independent business
people who are authorized to sell product of these cola
giant. PepsiCo and Coca cola are having the largest
distribution network in the world, which is also there one
of the greatest strength.

77

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.

78

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.

79
Packaging & Logo Design

U.S. containers in 2008. Various sizes from 8-67.6 US fl oz

(237 mL-2 L) shown in can, glass and plastic bottles…..

In the United States, soft drinks are sold in 2 Ls, 1.5 L, 1 L, 500 ml, 8,
12, 20 and 24 U.S. fluid ounce plastic bottles, 12 U.S. fluid ounce
cans, and short eight-ounce cans. Some Coca-Cola products can be
purchased in 8 and 12 U.S. fluid ounce glass bottles. Jones Soda and
Orange Crush are sold in 16 U.S. fluid ounce (1 U.S. pint) glass
bottles. Cans are packaged in a variety of quantities such as six packs,
12 packs and cases of 24, 36, and 360. With the advent of energy
drinks sold in eight-ounce cans in the US, some soft drinks are now
sold in similarly sized cans. It is also common for carbonated soft 80

Drinks to be served as fountain drinks in which carbonation is added to

a concentrate immediately prior to serving.

In Europe soft drinks are typically sold in 2 L, 1.5 L, 1 L, 0.33 L

plastic or 0.5 L glass bottles, aluminum cans are traditionally sized in
0.33 L, although 250 ml "slim" cans have become popular

Since the introduction of canned energy drinks and 355 ml variants of

the slim cans have been introduced by Red Bull more recently. Cans and
bottles often come in packs of six or four. Several countries have
standard recycled packaging with a forfeit typically ranging from € 0.15
to 0.25: bottles are smelted, or cleaned and refilled; cans are crushed and
sold as scrap aluminum.

In Australia, soft drinks are usually sold in 375 ml cans or glass or

plastic bottles. Bottles are usually 390 ml, 600 ml, 1.25 L or 2 L.
However, 1.5 L bottles have more recently been used by the Coca-
Cola Company.

In Canada, soft drinks are sold in cans of 236 ml (8.3 imp fl oz), 355 ml
(12.5 imp fl oz), 473 ml
(16.6 imp fl oz), and bottles of 591 ml (20.8 imp fl oz), 710 ml
(25.0 imp fl oz), 1 L (35.2 imp fl oz), 1.89 L (67 imp fl oz), and 2 L
(70.4 imp fl oz). The odd sizes are due to being the metric
Near-equivalents to 8, 12, 16, 20, 24, and 64 U.S. fluid ounces. This
allows bottlers to use the same- sized containers as in the U.S. market.
This is an example of a wider phenomenon in North America. Brands
of more international soft drinks such as Fanta and Red Bull are more
likely to come in round-figure capacities.

In India, soft drinks are available in 200 ml and 300 ml glass bottles,
330 ml cans and 600 ml, 1.25- liter, 1.5-liter and 2-liter plastic bottles.

82

Logo design
U.S. containers in 2008. Various sizes from 8-67.6 U.S. fl 
oz (237 mL-2 L) shown in can, glass and plastic
bottles……

The famous Coca-Cola logo was created by John Pemberton's

bookkeeper, Frank Mason Robinson, in 1885. It was Robinson who
came up with the name, and he also chose the logo’s distinctive
cursive script. The typeface used, known as Spenserian script, was
developed in the mid 19th century and was the dominant form of
formal handwriting in the United States during that period.
Robinson also played a significant role in early Coca-Cola advertising.
His promotional suggestions to Pemberton included giving away
thousands of free drink coupons and plastering the city of Atlanta with
publicity banners and streetcar signs.

83
 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 coke’s 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

 Acquiring bottling plant as many as possible

 Bottling holds the key to the distribution
 Sponsoring major and local events.
 Making successful product launches.
 Establishing prominent brands of long term stability
 Good relation with customers.
 Constant touch with the market. 84
By conducting marketing research in city, Coke & Pepsi can further
increase its market share. In general any company to be the market
leaders, it has to analyze the market size, growth, project potential,
buyer behavior, life style, purchasing behaviour & the taste of the
consumers. The aggressive companies will utilize the full market
opportunities.

85
QUESTIONNAIRE

Q1. Type of outlet

(a) General store (b) Pan shop

(C) Sweet shop (d) Canteen

Q2. Which brand of soft drinks you deal in ?

(a) Coca cola (b) Pepsi

(c) Both (d) Others

Q3. Which company’s signage you have in your outlet?

(a) Coca cola (b) Pepsi

(c)Both (d) No signage

Q4. Which company’s visi- cooler you have in your outlet ?

(a) Coca cola (b) Pepsi

 (a) Both (d) Mixed 86

Q5. Which company have better distribution network ?

(a) Coca cola (b) Pepsi (C) Both

Q6. Which is most preferred size of the bottle by customer ?

200ml300ml 500ml 1000ml 1500ml 2000ml

Q7. Do the customer know the difference between branded and

unbranded soft drinks ?

Yes No

Q8. What type of cold drinks you are selling ?

(a) Branded (b) unbranded (c) Both

 87

Q9. Major age group of customers who buy soft drinks?

(a) 5-15 (b) 15-25 (c) 35-45 (d) 45-55

Q10. What do you feel about the price of branded soft drinks ?

(a) Very high (b) High (c) Medium (d) Low (e) Reasonable

Q11. Do you feel a price reduction will increase the sales of branded
soft drinks ?

(a) Yes (b) No

Q12. Which medium affect the sales most ?

a)Television (b) Magazines/News papers

 (c) Display (d) Wall paintings/Hoardings
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Q13. Do you think that aggressive advertising further increase the sales
volume of Pepsi?

(a) Yes (b) No (c) No reply

Q14. What kind of promotional activities affect sale mostly?

(a)Free bottle scheme (b) Prize

(c) Discount carats (d) other

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Q15. What is your suggestion to improve the sale?

(a) New schemes

(b) Refrigeration system
(c) Advertisement
(d) Reduction in deposits

(e) Credit facilities

(f) Regular supply

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