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INDUSTRY PROFILE
Water
Despite the fact that all beverages contain water, water itself is not classed as a
beverage. The word beverage has traditionally been defined as not referring to water.
Alcoholic beverages
Beer has been a part of human culture for 8,000 years. In Germany, Ireland, the United
Kingdom, and many other European countries, drinking beer (and other alcoholic
beverages) in a local bar or pub is a cultural tradition.
Non-alcoholic beverages
Non-alcoholic beverages are drinks that usually contain alcohol, such as beer and wine,
but contain less than 0.5% alcohol by volume. This category includes low-alcohol beer,
non-alcoholic wine, and apple cider.
Fruit juice
Fruit juice is a natural product that contains few additives, or none. Citrus products such
as orange juice and tangerine juice are very familiar breakfast beverages. Grapefruit
juice, pineapple, apple, grape, lime, and lemon juice are also familiar products. Coconut
water is a highly nutritious and refreshing juice
Many kinds of berries are crushed and their juices mixed with water and sometimes
sweetened. Raspberry, blackberry and currants are often popular juices drinks but the
Fruits are highly perishable and so the ability to create juices and store them was of
significant value. Some fruits are highly acidic and mixing them with additional water
and sugars or honey was often necessary to make them palatable. Early storage of fruit
juices was labor intensive, requiring the crushing of the fruits and the mixing of the
resulting pure juices with sugars before bottling and capping them.
Orange juice and coconut water remain by far the most highly consumed juices on the
market and are there because of their valuable nutrients and hydration abilities.
Hot beverages
A hot beverage is any beverage which is normally served heated. This may be through
the addition of a heated liquid, such as water or milk, or by directly heating the
beverage itself. Some examples of hot beverages are:
• Coffee-based beverages
o Café au lait
o Cappuccino
o Coffee
o Espresso
o Frappé
o Flavored coffees (mocha etc.)
o Latte
• Hot chocolate
• Horlicks
• Hot cider
Soft drinks
The term "soft drink" specifies the absence of alcohol in contrast to "hard drink" and
"drink". "Drink" is nominally neutral but often connotes alcoholic content.
Beverages such as soda pop, sparkling water, iced tea, lemonade, squash, and fruit
punch are the most common soft drinks. Milk, hot chocolate, tea, coffee, milkshakes,
and tap water are not considered to be soft drinks.
Some carbonated soft drinks are available in versions that are sweetened with a sugar
substitute.
Any drink that is not hard liquor can be referred to as a 'soft drink'; however, in this
piece 'soft drink' refers to carbonated, sweetened beverages also known as soda or soda
pop. Following are the various companies which manufacture soft drinks:
• Pepsi Co.
• Coca Cola
• RC Cola
• Perrier
• Drinko
• Bundaberg
• Kirks
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.
COMPANY PROFILE
• PepsiCo sales pass the $1 billion mark. The company has 36,000 employees.
• PepsiCo moves from New York City to new world headquarters in Purchase,
N.Y. The new corporate headquarters feature a building by one of America's
foremost architects, Edward Durrell Stone (1902-1978), set on a campus of 144
acres amid an outdoor sculpture garden.
• Frito-Lay begins a program of expansion. Over the next decade, the company
opens, on average, more than one new plant a year.
• W.C. Fritos is introduced as Frito-Lay's new advertising mascot.
• Wilson Sporting Goods, a top name in sports equipment, joins PepsiCo. It is
divested in 1985.
• Pepsi introduces the industry's first two-liter bottle.
• Pepsi is the first company to respond to consumer preference with lightweight,
recyclable, plastic bottles.
1975 Milestones
1985 Milestones
1990 Milestones
• PepsiCo stock splits three-for-one.
• PepsiCo acquires a controlling interest in Gamesa, Mexico's largest cookie
company.
• Frito-Lay advertising for Doritos brand tortilla chips features talk celebrity Jay
Leno.
• PepsiCo signs the largest commercial trade agreement in history with the Soviet
Union.
• PepsiCo profits exceed $1 billion for the first time.
1995 Milestones
2000 Milestones
2009 Milestones
• PepsiCo is named to the 'Best Companies for Multi Cultural Women' list by
Working Mother magazine
• PepsiCo joins Ceres, a leading coalition of investors, environmental groups and
public interest organizations working to address sustainability efforts
• Near East brand launches two new products—Pearled Couscous side dish and
Near East Gourmet Meal Kits
• So Be Life water introduces two new zero-calorie flavors – Acai Fruit Punch
and Mango Melon
• Pepsi celebrates its 75th anniversary in Canada
• PepsiCo honored with 'Respect Award' for its commitment to diversity by the
Gay, Lesbian and Straight Education Network (GLSEN)
• PepsiCo-Almarai joint ventures acquires stake in Jordanian dairy company,
Teeba
• Frito-Lay Turkey honored with 'Environment-Friendly Industrial Plant' award
from the Kocaeli Chamber of Industry
• PepsiCo creates Baked Snacks North America Business Unit to meet consumers
interest in more nutritious snacks and foods
• PepsiCo opens new Russian beverage plant in Domodedovo, the largest bottling
plant in PepsiCo's global system
Between the late-1970s and the mid-1990s, PepsiCo expanded via acquisition of
businesses outside of its core focus of packaged food and beverage brands; however it
exited these non-core business lines largely in 1997, selling some, and spinning off
others into a new company named Tricon Global Restaurants, which later became
known as Yum! Brands, Inc. PepsiCo also previously owned several other brands that it
later sold, in order to allow it to return focus to its primary snack food and beverage
lines, according to investment analysts reporting on the divestments in 1997. Brands
formerly (no longer) owned by PepsiCo include: Pizza Hut, Taco Bell, KFC, Hot 'n
Now, East Side Mario's, D'Angelo Sandwich Shops,Chevys Fresh Mex, California
Pizza Kitchen, Stolichnaya (via licensed agreement), Wilson Sporting Goods and North
American Van Lines.
In August 2009, PepsiCo made a $7 billion offer to acquire the two largest bottlers of
its products in North America: Pepsi Bottling Group and Pepsi Americas. In 2010 this
acquisition was completed, resulting in the formation of a new wholly owned
subsidiary of PepsiCo, Pepsi Beverages Company. Also in late 2010, the company
made its largest international acquisition when it purchased a majority stake in Wimm-
Bill-Dann Foods - a Russian food company which produces milk, yogurt, fruit juices
and dairy products.
PepsiCo's Frito-Lay and Quaker Oats brands hold a significant share of the U.S. snack
food market, accounting for approximately 39 percent of U.S. snack food sales in 2009.
One of PepsiCo's primary competitors in the snack food market overall is Kraft Foods,
which in the same year held 11 percent of the U.S. snack market share.
The pharmacy of Caleb Bradham, with a Pepsi dispenser, as portrayed in a New Bern
exhibition in the Historical Museum of Bern.
Pepsi was first introduced as "Brad's Drink" in New Bern, North Carolina in 1898 by
Caleb Bradham, who made it at his home where the drink was sold. It was later named
Pepsi Cola, possibly due to the digestive enzyme pepsin and kola nuts used in the
recipe. Bradham sought to create a fountain drink that was delicious and would aid in
digestion and boost energy. In 1903, Bradham moved the bottling of Pepsi-Cola from
his drugstore to a rented warehouse.
That year, Bradham sold 7,968 gallons of syrup. The next year, Pepsi was sold in six-
ounce bottles, and sales increased to 19,848 gallons. In 1909, automobile race pioneer
Barney Oldfield was the first celebrity to endorse Pepsi-Cola, describing as "A bully
drink...refreshing, invigorating, a fine bracer before a race." The advertising theme
"Delicious and Healthful" was then used over the next two decades. In 1926, Pepsi
received its first logo redesign since the original design of 1905. In 1929, the logo was
changed again.
In 1931, at the depth of the Great Depression, the Pepsi-Cola Company entered
bankruptcy - in large part due to financial losses incurred by speculating on wildly
fluctuating sugar prices as a result of World War I. Assets were sold and Roy C.
Megargel bought the Pepsi trademark.
He sought to replace Coca-Cola at his stores' fountains after Coke refused to give him a
discount on syrup. Guth then had Loft's chemists reformulate the Pepsi-Cola syrup
formula.
On three separate occasions between 1922 and 1933, the Coca-Cola Company was
offered the opportunity to purchase the Pepsi-Cola company and it declined on each
occasion.
Pepsi-Cola trademark
The original stylized Pepsi-Cola logo
Walter Mack was named the new President of Pepsi-Cola and guided the company
through the 1940s. Mack, who supported progressive causes, noticed that the company's
strategy of using advertising for a general audience either ignored African Americans or
used ethnic stereotypes in portraying blacks.
He realized African Americans were an untapped niche market and that Pepsi stood to
gain market share by targeting its advertising directly towards them. To this end, he
hired Hennan Smith, an advertising executive "from the Negro newspaper field to lead
an all-black sales team, which had to be cut due to the onset of World War II. In 1947,
Mack resumed his efforts, hiring Edward F. Boyd to lead a twelve-man team. They
came up with advertising portraying black Americans in a positive light, such as one
with a smiling mother holding a six pack of Pepsi while her son (a young Ron Brown,
who grew up to be Secretary of Commerce) reaches up for one. Another ad campaign,
titled "Leaders in Their Fields", profiled twenty prominent African Americans such as
Nobel Peace Prize winner Ralph Bunche and photographer Gordon Parks.
Pemberton's bookkeeper, Frank Robinson, named the mixture Coca-Cola®, and wrote
it out in his distinct script. To this day, Coca-Cola is written the same way. In the first
year, Pemberton sold just 9 glasses. In the first year, Pemberton sold just 9 glasses of
Coca-Cola a day.
A century later, The Coca-Cola Company has produced more than 10 billion gallons of
syrup. Unfortunately for Pemberton, he died in 1888 without realizing the success of
the beverage he had created.
Over the course of three years, 1888-1891, Atlanta businessman Asa Griggs Candler
secured rights to the business for a total of about $2,300. Candler would become the
Company's first president, and the first to bring real vision to the business and the
brand.
Asa G. Candler, a natural born salesman, transformed Coca-Cola from an invention into
a business. He knew there were thirsty people out there, and Candler found brilliant and
innovative ways to introduce them to this exciting new refreshment. He gave away
coupons for complimentary first tastes of Coca-Cola, and outfitted distributing
pharmacists with clocks, urns, calendars and apothecary scales bearing the Coca-Cola
brand. People saw Coca-Cola everywhere, and the aggressive promotion worked. By
1895, Candler had built syrup plants in Chicago, Dallas and Los Angeles.
Inevitably, the soda's popularity led to a demand for it to be enjoyed in new ways. In
1894, a Mississippi businessman named Joseph Biedenharn became the first to put
Coca-Cola in bottles. He sent 12 of them to Candler, who responded without
enthusiasm. Despite being a brilliant and innovative businessman, he didn't realize then
that the future of Coca-Cola would be with portable, bottled beverages customers could
take anywhere. He still didn't realize it five years later, when, in 1899, two Chattanooga
lawyers, Benjamin F. Thomas and Joseph B. Whitehead, secured exclusive rights from
Candler to bottle and sell the beverage -- for the sum of only one dollar.
Imitation may be the sincerest form of flattery, but The Coca-Cola Company was none
too pleased about the proliferation of copycat beverages taking advantage of its success.
This was a great product, and a great brand. Both needed to be protected. Advertising
focused on the authenticity of Coca-Cola, urging consumers to "Demand the genuine"
and "Accept no substitute."
The Company also decided to create a distinctive bottle shape to assure people they
were actually getting a real Coca-Cola. The Root Glass Company of Terre Haute,
The contour bottle, which remains the signature shape of Coca-Cola today, was chosen
for its attractive appearance, original design and the fact that, even in the dark, you
could identify the genuine article.
Imitation may be the sincerest form of flattery, but The Coca-Cola Company was none
too pleased about the proliferation of copycat beverages taking advantage of its success.
This was a great product, and a great brand. Both needed to be protected. Advertising
focused on the authenticity of Coca-Cola, urging consumers to "Demand the genuine"
and "Accept no substitute."
The Company also decided to create a distinctive bottle shape to assure people they
were actually getting a real Coca-Cola. The Root Glass Company of Terre Haute,
Indiana, won a contest to design a bottle that could be recognized in the dark. In 1916,
they began manufacturing the famous contour bottle. The contour bottle, which remains
the signature shape of Coca-Cola today, was chosen for its attractive appearance,
original design and the fact that, even in the dark, you could identify the genuine article.
Perhaps no person had more impact on The Coca-Cola Company than Robert
Woodruff. In 1923, four years after his father Ernest purchased the Company from Asa
Candler, Woodruff became the Company president. While Candler had introduced the
U.S. to Coca-Cola, Woodruff would spend more than 60 years as Company leader
introducing the beverage to the world beyond.
Woodruff was a marketing genius who saw opportunities for expansion everywhere. He
led the expansion of Coca-Cola overseas and in 1928 introduced Coca-Cola to the
Woodruff pushed development and distribution of the six-pack, the open top cooler,
and many other innovations that made it easier for people to drink Coca-Cola at home
or away. This new thinking made Coca-Cola not just a huge success, but a big part of
people's lives.
In 1941, America entered World War II. Thousands of men and women were sent
overseas. The country, and Coca-Cola, rallied behind them. Woodruff ordered that
"every man in uniform gets a bottle of Coca-Cola for 5 cents, wherever he is, and
whatever it costs the Company." In 1943, General Dwight D. Eisenhower sent an
urgent cablegram to Coca-Cola, requesting shipment of materials for 10 bottling plants.
During the war, many people enjoyed their first taste of the beverage, and when peace
finally came, the foundations were laid for Coca-Cola to do business overseas.
Woodruff’s vision that Coca-Cola be placed within "arm's reach of desire," was
coming true -- from the mid-1940s until 1960, the number of countries with bottling
operations nearly doubled. Post-war America was alive with optimism and prosperity.
Coca-Cola was part of a fun, carefree American lifestyle, and the imagery of its
advertising -- happy couples at the drive-in, carefree moms driving big yellow
convertibles -- reflected the spirit of the times.
In 1941, America entered World War II. Thousands of men and women were sent
overseas. The country, and Coca-Cola, rallied behind them. Woodruff ordered that
"every man in uniform gets a bottle of Coca-Cola for 5 cents, wherever he is, and
whatever it costs the Company." In 1943, General Dwight D. Eisenhower sent an
urgent cablegram to Coca-Cola, requesting shipment of materials for 10 bottling plants.
Woodruff’s vision that Coca-Cola be placed within "arm's reach of desire," was coming
true -- from the mid-1940s until 1960, the number of countries with bottling operations
nearly doubled. Post-war America was alive with optimism and prosperity. Coca-Cola
was part of a fun, carefree American lifestyle, and the imagery of its advertising --
happy couples at the drive-in, carefree moms driving big yellow convertibles --
reflected the spirit of the times.
The 1980s -- the era of legwarmers, headbands and the fitness craze, and a time of
much change and innovation at The Coca-Cola Company. In 1981, Roberto C.
Goizueta became chairman of The Board of Directors and CEO of The Coca-Cola
Company. Goizueta, who fled Castro's Cuba in 1961, completely overhauled the
Company with a strategy he called "intelligent risk taking."
Among his bold moves was organizing the numerous U.S. bottling operations into a
new public company, Coca-Cola Enterprises Inc. He also led the introduction of diet
Coke®, the very first extension of the Coca-Cola trademark; within two years, it had
become the top low-calorie drink in the world, second in success only to Coca-Cola.
One of Goizueta's other initiatives, in 1985, was the release of a new taste for Coca-
Cola, the first change in formulation in 99 years. In taste tests, people loved the new
formula, commonly called “new Coke.” In the real world, they had a deep emotional
attachment to the original, and they begged and pleaded to get it back. Critics called it
the biggest marketing blunder ever. But the Company listened, and the original formula
was returned to the market as Coca-Cola classic®, and the product began to increase its
lead over the competition -- a lead that continues to this day.
The 1990s were a time of continued growth for The Coca-Cola Company. The
Company's long association with sports was strengthened during this decade, with
ongoing support of the Olympic Games, FIFA World Cup™ football (soccer), Rugby
World Cup and the National Basketball Association. Coca-Cola classic became the
Official Soft Drink of NASCAR racing, connecting the brand with one of the world's
fastest growing and most popular spectator sports.
And 1993 saw the introduction of the popular "Always Coca-Cola" advertising
campaign, and the world met the lovable Coca-Cola Polar Bear for the first time. New
markets opened up as Coca-Cola products were sold in East Germany in 1990 and
returned to India in 1993.
New beverages joined the Company's line-up, including PowerAde sports drink, Qoo
children's fruit drink and Dasani bottled water.
Thums Up is a best-selling brand of cola in India where its bold, red thumbs up logo is
common. It is similar in flavor to other colas but has a taste reminiscent of betel nut.
Introduced in 1977 to offset the expulsion of The Coca-Cola Company and other
foreign companies from India, Thums Up, Limca, and Campa Cola gained nationwide
acceptance. The brand was bought out by Coca-Cola who re-launched it in order to
compete against Pepsi.
Background
Thums Up enjoyed a near monopoly with a much stronger market share often
overshadowing its other rivals like Campa cola, Double seven and Dukes, but there
were many small regional players who had their own market. It even withstood liquor
giant United Breweries Group (makers of Kingfisher Beer) Mcdowell's Crush, which
was another Cola drink, and Double Cola.
It was one of the major advertisers throughout the 1980s. In the mid-80’s it had a brief
threat from a newcomer Double Cola which suddenly disappeared within a few years.
In 1993 Coca-Cola re-entered India after a prolonged absence from 1977 to 1993. But
Coca-Cola’s entry made things even more complicated and the fight became a three-
way battle. That same year, in a move that baffled many, Parle sold out to Coke for a
meagre US$ 60 million (considering the market share it had). Some assumed Parle had
lost the appetite for a fight against the two largest cola brands; others surmised that the
international brands seemingly endless cash reserves psyched-out Parle. Either way, it
was now Coca-Cola’s, and Coke has a habit of killing brands in its portfolio that might
overshadow it. Coca-Cola soon introduced its cola in cans which was all the rage in
India, with Thums Up introduced alongside, albeit in minuscule numbers. Later Coca-
Cola started pulling out the Thums Up brand which at that time still had more than 30%
market share.
Thums Up went from being the only cola in the cantina to facing competition from both
Coca-Cola and Pepsi. Twenty-six years later it’s still a top cola in India and is one of
the strongest brands in the country across categories. The brand name’s positive
associations of victory, achievement and celebration are apparently merited as it
continues to do well despite a challenging landscape.
The entry of Coke, in 1993, made things even more complicated and the fight became a
three-way battle. That same year, in a move that baffled many, Parle sold out to Coke
for a mere US$ 60 million. Some assumed Parle had lost the appetite for a fight against
the two largest cola brands; others surmised that the international brands seemingly
endless cash reserves psyched-out Parle. Either way, it was now Coca-Cola’s, and Coke
has a habit of killing brands in its portfolio that might overshadow it.
The brand was positioned as a “manly” drink, drawing on its strong taste qualities.
Known to be a strong drink with more power packed into it than other colas, older
consumers mix it with rum for a “rum and Thums Up.”
The brand launched a campaign that focused on the strength of the drink, hoping that
the depiction as an “adult” drink would appeal to young consumers. “Grow up to
Thums Up” was a successful campaign. The brand’s market share and equity soared
northwards. The brand was unshakeable and Coca-Cola’s declaration that Thums Up
was India’s premier cola brand in terms of market share did not surprise many.
Other campaigns from Thums Up’s build on the “strength” of its cola and build
associations as a macho drink. Ads showing the Thums Up man riding through the
desert in search of a cantina that sells Thums Up rather than drink another cola stick in
the minds of many Indians and caught the imagination of youngsters who want to be
seen as men.
CHAPTER 3
THEORETICAL
FRAMEWORK
Marketing mix was coined in 1953 by Neil Borden in his American Marketing
Association presidential address. However, this was actually a reformulation of an
earlier idea by his associate, James Culliton, who in 1948 described the role of the
marketing manager as a "mixer of ingredients", who sometimes follows recipes
prepared by others, sometimes prepares his own recipe as he goes along, sometimes
adapts a recipe from immediately available ingredients, and at other times invents new
ingredients no one else has tried. A prominent marketer, E. Jerome McCarthy, proposed
a Four P classification in 1960, which has seen wide use.
Product
Price
Pepsi
But this risk taking attitude has also earned Pepsi losses. Though lowering the price
would attract the customers but it would not help them cover up the cost incurred in
production hence causing them losses. This was the situation earlier but now Pepsi is a
full-fledged and growing company. It has covered all its losses and is now growing at a
rapid rate.
Thums up
Earlier the price of thums up was costly i.e. it was decided on the cost which was spent
on making the product plus the profit and other expenses. But after the emergence of
other companies especially the likes of Pepsi, thums up started with a pricing strategy
based on the basis of competition. Nowadays more expenses are spent on advertising
soft-drink companies rather than on manufacturing.
Place
Place is a term that has a variety of meanings in a dictionary sense, but which is
principally used in a geographic sense as a noun to denote location, though in a sense of
a location identified with that which is located there.
In marketing, place refers to one of the 4 P's, defined as "the market place". It can mean
a geographic location, an industry, a group of people (a segment) to whom a company
wants to sell its products or services, such as young professional women (e.g. for
selling cosmetics) or middle-aged family men (e.g. for selling family cars).
Thums up has its market around the entire world. Its very popular in India.
Pepsi has brand ambassadors such as Sachin Tendulkar, Shah Rukh Khan and Kareena
Kapoor etc. thums up has brand ambassadors such as Akshay Kumar, Salman Khan and
Cheeranjivi etc.
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.
Target 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
1. Geographical Segmentation
• 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.
2. Demographic Segmentation
If we take the example of soft drink industry, then these companies not only sell soft
drinks in physical forms, but brands. A brand comprises of everything from beverages
to experiences. However in this chapter we shall try to understand and analyze the
product line and product classification of Pepsi and coca cola.
To be able to market its product properly, a business must be aware of the product life
cycle of its product. The standard product life cycle tends to have five phases:
• Development
• Introduction
• Growth
• Maturity
• Decline
In America carbonated soft drink market is currently in the maturity stage, which is
evidenced primarily by the fact that they have a large loyal group of stable customers
but in the developing countries like carbonated soft drinks are in growth stage, which is
evidenced by looking at the per head consumption of 6 bottles in India is lagging
behind the us astounding 700 bottles per head consumption.
1. Brand Name
A brand is the identity of a specific product, service, or business. A brand can take
many forms, including a name, sign, symbol, color combination or slogan. The word
brand began simply as a way to tell one person's cattle from another by means of a hot
iron stamp. A legally protected brand name is called a trademark. The word brand has
continued to evolve to encompass identity - it affects the personality of a product,
company or service.
2. Packaging
Thums up and Pepsi are much innovated in the packing of their product. These products
were introduced with different concept of packing. The Airtight bottle concept is given
by the Coca cola, which has revolutionized the bottling and packaging industry. These
Cola giant also introduced the different size of returnable glass bottle like 200ml, 300ml
and non- returnable plastic bottle like 600 ml, 1.5 litre and 2 litres of thums up
according to the need of the targeted customer. They also pioneer in bring Cans and
Frosted bottles in the market. Packing helps the brand to capture the desire target like
3. Labeling
Pepsi has associated it self to rich deep blue colour as blue colour represents eternal
youthness and openness that is appropriately consistence with the youth segment they
are targeting. Pepsi under the name of Project Globe Campaign spent 637 million
dollars over 5 years, to introduce the new rich deep blue colouring. So labeling helps
the brand to get attach with the targeted segment.
7. The brand makes use of and coordinates a full repertoire of marketing activities to
build equity.
8. The brand’s managers understand what the brand means to consumers.
9. The brand is given proper sustained support.
10. The company monitors sources of brand equity
The latest row in the ongoing battle. The latest Coke’s strategy is to engage Pepsi in
war with Thumps up and playing safe with Coca-Cola. The latest ads of thumps up
which features Salman Khan tries to make fun of Pepsi and its sweeter taste. Pepsi also
has retaliated by its latest ad of Lehar Soda, which features a look alike of Salman Khan
at these data we can that for these two giant a lot of potential is there in developing
market which is now also untapped.
Strengths
Pepsi and Thums up 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 Thums up 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 same time 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.
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 the
stability 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.
Brand recognition is the significant factor affecting Pepsi and Thums up competitive
position. Pepsi and Thums up brand are 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.
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 this Substitute will remain threat to them. Consumer buying power is also
represents a key threat to the Pepsi and Coke.
RESEARCH
METHODOLOGY
Navnirman Institute of Management
49
Objectives of the Study
To compare the products Pepsi (PepsiCo) and Thums up (coco cola) through consumer
survey.
The comparison study is often used in the business world as a means of identifying how
a given good or service compares to similar products offered by a competitor. In going
through the process of comparing each facet of the two items, it is often possible to
identify areas where both products perform at a similar rate of efficiency. At the same
time, comparative studies will often yield insights about areas where one product excels
in comparison with the other. Utilizing the results of the comparison study, it is possible
to develop some powerful tools that can be incorporated into corporate marketing
strategies and sales campaigns.
Type of research design: Research designs is concerned with turning the research
question into a testing project. The best design depends on our research questions.
Descriptive research design will be used as it is not possible to measure large no. of
samples. In this method the samples are observed in a natural and unchanged natural
environment.
Sampling size - The sample size of a statistical sample is the number of observations
that constitute it. The sampling size for comparative study of Pepsi and Thums up is
100. 10 pilot surveys were also done.
Sampling Method - Convenient Sampling method was adopted for this study
Convenience sampling is a non-probability sampling technique where subjects are
selected because of their convenient accessibility and proximity to the researcher.
Sampling element - The sampling element for the study is the target audience i.e.
the people who consume soft drinks specifically Pepsi and thums up irrespective of age.
Survey tool- The survey tool used for comparing the two products is questionnaire. A
questionnaire is a research instrument consisting of a series of questions and other
prompts for the purpose of gathering information from respondents.
The questionnaire was prepared and the Questionnaire consisted of both open and close
ended questions to elicit responses for the following areas:
Analysis of data: The complete analysis is done through Pie charts which display
each value to total, bar graphs. A bar chart or bar graph is a chart with rectangular bars
with lengths proportional to the values that they represent.
For few proper response the analysis was difficult which are as follows:
i. Chances of Switching
ii. Reason for Switching.
iii. Monthly Income.
iv. Comparative questions
ANALYSIS
Weekly
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Fig 1: Consumption of carbonated drinks
Comments: After the survey it was found that most of the people prefer taking
carbonated drinks once in a month followed by taking it weekly then fortnight and
finally few go for taking the carbonated drinks daily.
Thums up
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Fig 2: Cold drink preferred by respondents
Comments: While selecting the cold drink like Pepsi respondents give there first
preference to brand image followed by taste, availability and advertisement.
Thums up
Table 4
Taste Availability Brand Image Advertisement
Rank 1 18 3 2 3
Rank 2 4 10 8 6
Rank 3 3 9 8 7
Rank 4 2 5 9 11
20
18
18
16
14
11 Rank 1
12
10 Rank 2
10 9 9
8 8 Rank 3
8 7
6 Rank 4
6 5
4
4 3 3 3
2 2
2
0
Taste Availability B rand image Adve rtis e me nt
Fig 4: Ranking according to the preferences of the respondents
Both
Table 5
8 7 7 Rank 1
6 Rank 2
6
5 5 5 Rank 3
4 4 4 4 Rank 4
4
3 3 3
0
Taste Availabilty Brand image Advertisement
Table 6
Both Pepsi
35% 31%
Thums up
34%
Comments: After the survey it was found that the cold drink preferred in the friend
circle of the respondent is some what both the drinks i.e. Pepsi and thums up followed
by thums up and then Pepsi.
14 13
12 11
10 300ml-600ml
8 600ml-1.2ltr
8
6 6 6 6 6 1.2ltr-2ltr
6 2ltr & more
4
4
2 2
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0
Pepsi Thums up Both
Fig 7: Consumption of cold drinks in a month by respondents
Comments: After the survey it was found that the people who consume Pepsi
generally take 300ml- 600ml of cold drinks in a month followed by 1.2ltr – 2ltrs of cold
drink in a month. The one who consume thums up even they consume 300ml- 600ml of
cold drink in a month. It was found that the respondents who consume both the drink
consume around 1.2ltr- 2ltrs in a month.
Table 8
Both
30%
Thum s up
28%
Comments: With the survey it was found that Pepsi is preferred by the respondents
at any occasion whether party or any festival followed by thums up even there are
people who prefer both these drinks at any occasion. Some also prefer other drinks at
different occasion such as Slice, Maaza, and Sprite etc.
Table 9
1.2 ltr
18%
600 m l
30%
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Pepsi Thums up Both
Definitely yes 10 6 5
Probably yes 10 9 10
Not sure 7 1 4
Probably no 4 8 3
Definitely no 4 3 1
Comments: Respondents generally prefer 600 ml packaging for drinking the cold
drinks followed by the 300 ml bottles then 2ltrs bottles and finally 1.2ltrs.
Table 10
1010 10
10
9
8
8 Definitely yes
7
6 Probably yes
6 Not sure
5
Probably no
4 4 4
4 Definitely no
3 3
2
1 1
0
Fig 10: Influence
Pepsi of promotional
Thums schemes
up on choice
Bothof soft drinks
Comments: Through the survey it was found that most of the respondents who
consume Pepsi feel that promotional schemes affect the choice of selecting the cold
drinks where as the one who consume thums up were not sure of the statement and the
one who go for both the drinks said that it may probably affect towards the choice.
Table 11
2 1
0
Pepsi Thums up Both
Comments: Through the survey it was found that most of the respondents who
consume Pepsi feel that advertisement probably affect the choice of cold drinks
whereas the one who consume thums up even they feel the same and also the one who
consume both drinks i.e. Pepsi and thums up.
Table 12
2
1
0
Pepsi Thums up Both
Comments: Through the survey it was found that most of the respondents who
consume these brands feel that brand endorsement may probably affect the choice of
selecting the cold drink.
11) How likely you going to use the same cold drink in future?
Table 13
16
Pepsi Thums up Both
14
Yes 23 19 18
No 12 8 5 Definitely yes
12
10 10 Probably yes
10 9 9 Not sure
8
8 Probably no
6 Definitely no
6 5
4 3 3
2
2 1 1
0 0
0
Pepsi Thums up Both
Fig 13: Chances of existing cold drink brand to be used in future by the respondents
Comments: Through the survey it was found that most of the respondents who
consume Pepsi will definitely go for Pepsi in future. The one who consume thums up
will probably consume the same drink in future.
12) Would you like to recommend your favorite cold drink brand
to others?
Table 14
20 19
18
15
12 Yes
10
No
8
5
5
0
Pepsi Thums up Both
Fig 14: Recommendation of favorite cold drinks to others
Comments: Through the survey it was found that most of the respondents will
recommend the brand they consume to others.
Pepsi
Table 15
16 15
14
14
12 12
12 11
10 10 Poor
10 9 9
8 8 Average
8 7 7 Fairly good
6 6 6 Very good
6 5
4 Excellent
4 3 3 3
2
2 1
0 0
0
Taste Brand image Availabilty Advertisement Quality
Comments: After the survey it was found that the respondents who consume Pepsi
find the advertisements are fairly good as compared to the other attributes.
Thums up
Table 16
14 13
12 12
12
10
10 9
Poor
88 8 8 8
8 7 Average
Fairly good
6 5 5 5 Very good
4 4
Excellent
4 3 3
2
2 1
0 00 0 0
0
Fig 16: Rating
Tasteof the attributes for Thums
Brand image up
Availability Advertisement Quality
Comments: Through the survey it was found that people consuming thums up find
the brand image good as compared the to the other attributes as thums up belongs to the
coca cola company.
Both
Table 17
Fig 17: Rating of the attributes for Thums up and Pepsi both
Comments: Through the survey it was found that people consuming both the drinks
simultaneously find the availability of the cold drinks fairly good.
FINDINGS
1. People prefer drinking cold rinks once in a month, followed by drinking it weekly
then fortnight and finally there were some who go for taking it daily. People who
take cold drinks once in a month said that they don’t find cold drinks as a healthy
product.
3. While selecting Pepsi respondents said that they look for the brand image and then
other criteria’s like the taste, availability, advertisement. The respondents who drink
thums up give more preference to taste and all other criteria don’t matter to them.
Respondents who take both the drinks i.e. Pepsi and thums up give more
importance to taste followed by advertisement, brand image lastly availability. By
overall survey it can be conclude that mostly taste is given the first preference.
4. The cold drink which is preferred the most in the friend circle of the respondents
was both the brands i.e. Pepsi and Thums up. There was no any particular brand as
such of choice.
5. During any occasion the respondents prefer Pepsi whether it is any festival or party,
Followed by thums up which is preferred. They say that the brand Pepsi is so
popular that it’s on the mind while they purchase the cold drinks.
6. People generally prefer 600ml of bottle as the packaging of cold drinks they find it
enough to consume and also easy to carry and handle, followed by 300ml bottle.
Generally 300ml bottle is preferred by the people who find take cold drinks once in
a month.
7. People who consume Pepsi generally consume 300ml- 600ml amount of drink in a
month whereas who prefer thums up mostly also consume 300ml- 600ml amount of
8. the one who prefer Pepsi say that advertisements influence the choice of selecting
the cold drink whereas the one who prefer thums up were not sure of that
advertisement influences the choice or not. And people who consume both the
drinks believe that advertisements influence the choice.
9. Through the survey it was found that most of the respondents who consume Pepsi
feel that advertisement probably affect the choice of cold drinks whereas the one
who consume thums up even they feel the same and also the one who consume both
drinks i.e. Pepsi and thums up.
10. Through the survey it was found that most of the respondents who consume these
brands feel that brand endorsement may probably affect the choice of selecting the
cold drink.
11. Through the survey it was found that most of the respondents who consume Pepsi
will definitely go for Pepsi in future. The one who consume thums up will probably
consume the same drink in future.
12. Through the survey it was found that most of the respondents will recommend the
brand they consume to others.
13. Through the survey it was found that most of the respondents will recommend the
brand they consume to others.
15. Through the survey it was found that people consuming both the drinks
simultaneously find the availability of the cold drinks fairly good.
CONCLUSION AND
RECOMMENDATION
CONCLUSION
After the survey I would like to conclude that people generally drink less carbonated
drinks at large time span as they don’t find these carbonated drinks healthy but on the
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same time there is no particular age group for the preference of these cold drinks. With
the survey I came to know that Pepsi is the brand which is preferred the most as
compared to Thums up. While selecting Pepsi people go for its brand image whereas
for Thums up they go for taste. In general people think that advertisements do influence
in making the choice of there favorite cold drink. The one who prefer both the brands
individually promotional schemes changes the choice of selecting the drink. The one
prefer Pepsi will definitely consume Pepsi in future but the one who consume Thums
up may or may not go for the same brand in future. The respondents said that they will
recommend their favorite brand to others. In all with the survey I found that Pepsi is
most popular product as compared to Thums up.
RECOMMENDATIONS
1. Pepsi, the choice of Generation next is not providing the first choice of young
generation. The target market is youth and the taste is not in relation with the taste
of target market (Pepsi is too sweet) A young generation wants something strong in
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cold drinks & thus prefers Thums up. Pepsi should come out with some extra strong
taste to catch up maximum young generation & to become exactly Generation Next
drink.
2. Produce a range of Healthy, i.e. Sugar free or diet Alternatives.
3. People prefer thums up for its taste but the advertisements are not found appealing
so the advertisements should be made entertaining that they can penetrate in the
market. As it is in the case of Pepsi with huge brand endorsements.
4. Thums up belonging to such a company coca cola, should try bringing out some
change in the logo design and its colour and should keep on revising it.
5. Thums up should associate itself with celebrities which can help people influencing
them to drink it.
• Philip Kotler, Kelvin Lane Keller, Abraham Koshay and Mithileshwar Jha,
“MARKETING MANAGEMENT – A SOUTH ASIAN PERSPECTIVE,”
13TH Edition PEARSON Prentice Hall
• G.C Beri, “Marketing research” 4th edition, Tata McGraw hill
• WEBSITES:
o www.pepsi.com
Respected sir/madam
Pepsi Thums up
3. On what criteria do you select the drink of your choice? Rank them according to
your preference. (Rank 1 to 4)
Taste __
Availability __
Brand image __
Advertisement __
Pepsi Thums up
Pepsi Thums up
300 ml 600 ml
1.2 ltr 2 ltr
| | | | |
Definitely yes Probably yes Not sure Probably no Definitely no
| | | | |
Definitely yes Probably yes Not sure Probably no Definitely no
11. How likely you going to use the same cold drink in future?
| | | | |
Definitely yes Probably yes Not sure Probably no Definitely no
12. Would you like to recommend your favorite cold drink brand to others?
Yes No
Name: ………………………………………………………………………….
Address ………………………………………………………………………..
………………………………………………………………………..
Age: ………………
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Occupation: ……………………………………
Annual income: