A GRAND PROJECT REPORT ON

A study of Indian Aerated Drink industry with special focus on retailers satisfaction level with respect to Coke India vs. PepsiCo India

In the fulfillment For the Requirement of Two Year Full time Master of Business Administration, Gujarat University

Project Guide

Submitted By:Pravin Dave (08023) Virang Pandhi (08065)

Prof. Jasmin Padiya Prof. Poonam Nair

Batch: 2008-2010

N. R. Institute of Business Management

N.R. Institute of Business Management (GLS-MBA)

Certificate
This is to certify that Pravin Dave & Virang Pandhi Having Roll Numbers 08023 and 08065 respectively of N.r. Institute of Business Management (GLS-MBA) Ahmedabad of the batch 2008-2010 Has successfully completed his grand project of the Subject
[

A study of Indian Aerated Drink industry with special focus on retailers satisfaction level with respect to Coke India vs. PepsiCo India In the fulfillment For the Requirement of Two Year Full time Master of Business Administration, Gujarat University They have Successfully Grand Project completed the

Prof. Jasmin Padiya Hitesh Ruparel

Dr.

Project Guide Prof. Poonam Nair 20-03-2010 Project Guide

Director Date:

PREFACE
A comprehensive practical study of management is a supplement to the theoretical classroom knowledge. It helps to understand the subject more precisely. This report tries to outline idea of professional world and helps in understanding the pragmatic aspect of management function. Own observation are significant towards the contribution in learning the subject. The report is therefore as a design as a reference of organisation function rather then copy down instrument. The purpose of industrial training is to make management student familiar with day today function of business. The present report is an effort in this direction. My humble endeavour and motive in presenting the project report is to find out the comparison of brands between Coca-Cola and Pepsi. It is hoped that this project serve as a supportive documents to research worker as effort has been tried to make this report and informative stimulating and self explanatory.

Place : Ahmedabad 16 March, 2010

Virang Pandhi Pravin Dave

ACKNOWLEDGEMENT
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We think if any of us honestly reflects on who we are, how we got here, what we think we might do well, and so forth, we discover a debt to others that spans written history. The work of some unknown person makes our lives easier everyday. We believe it's appropriate to acknowledge all of these unknown persons; but it is also necessary to acknowledge those people we know have directly shaped our lives and our work. Through this acknowledgement, we express our sincere gratitude towards all those people who have helped us in the preparation of this project, which has been a good learning experience for us. We would like to thank the distribution channel and Logistics department of the both Giant Organisation Coke and Pepsi. Both company has Provided us the various touch points of the whole chain. We have covered the whole chain of urban area. Finally we express our sincere thanks to Prof. Jasmin Pandya and Prof. Poonam Nair who guided us throughout this project.
-Pravin Dave (08023)

-Virang Pandhi (08065)

EXECUTIVE SUMMARY

Coca-Cola and PepsiCo are the two major companies in the world for cola drinks and have a huge world market share. These two companies have captured the market of each and every country they get into and same I the case in India where Coke has a market share of 57.8% while pepsi has a market share of 35.6% and are continuously fighting for a larger market share and continuously attacking each other either by Advertisements, brand ambassadors, products and marketing of their brand. All this is fine but the main core competency of such products is in the Distribution Process and in the satisfaction of their Retailers thus a strong distribution process and a strong satisfaction level means more number of retailers and more the retailers means more the availability of the product and more the availability of the product means more the market share and thus the curiosity to know who is the better distributor and has a strong distribution led us to the project A study of Indian Aerated Drink industry with special focus on retailers satisfaction level with respect to Coke India vs. PepsiCo India We conducted a survey of mainly panwalas as and other Pepsi and Coke Stockers but the major stockers are the panwalas of mainly 100 respondents. It was a simple questionnaire and we asked questions on quality of bottles, margins and other attributes. We got the number of sellers by convenient sampling and analysis and secondary data analysis and the results are given in the project below

Table of Contents

2. PHILLIP KOTLER (2010): MARKETING MANAGEMENT, 13TH EDITION PEARSON EDUCATION 103 0 12.1CONCLUSIONS 12.2 Recommendations to Coke 12.3 Recommendations to Pepsi 91 91 92

BIBLIOGRAPHY ANNEXTURE

I II

CH 1: RESEARCH METHODOLOGY

1. Research Methodology

Problem statement / Objective of the research

To Study the concept of distribution channel and logistics in the soft drink industry and to study the flow of soft-drink bottles in the market and compare it with the main competitor in the industry.

Major objectives
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To study the satisfaction level of retailers. In depth study of the distribution channel of Pepsi and coke Critically compare the Supply chain management of the both company. Find out the limitation and strength of both companies.

Research design
The research design that will be use is descriptive research Involves gathering data that describe events and then organizes, tabulates, depicts, and describe the data Uses description as a tool to organize data into patterns that emerge during analysis Often uses visual aids such as graphs and charts to aid the reader.

Description research takes a what is approach Refers to the nature of the research question The design of the research The way that data will be analyzed for the topic that will be researched

There are three methods of data collection under this method. They are: Survey Interviews Observations

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 Sampling plan
Target population: Retailers who stock coke and pepsi mainly panwalas Sampling size: 100 Sampling technique: convenience sampling Sample Frame: - All members in the retailing channel and who influence the channel. Sample Unit: - Any retailer and dealer who stock pepsi and coke. Sampling Method :- Non probability convenience sampling

Data collection sources

Primary data Primary data would be collected through the structured questionnaire consisting mainly open ended questions Secondary data Secondary data would be collected from the internet, journals, and reference books.

Figure 1.1: Marketing Research

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 Scope of the study

ANALYSIS OF DATA All the open-ended questions will be analysed by adding up the responses against each alternative and answers from the various respondents. Transcripts will result in the finding to explore the changes that are likely to impact the unique aspects of beverage industry, with present scenario in India and in world. Our findings will show the current trends in beverage industry, various problems faced by the industry according to various respondents.

Expected contribution of the study The analysis made as a part of this study may contribute in a way analysis of strength and weakness of the sector as whole may be taken into consideration and various firms together may make efforts to overcome those limitations and as a result not only the beverage manufacturing firms would be benefited but others who uses the services of these firms would also be benefited.

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 Beneficiaries of the study

The outcomes analysed from this study would be beneficial to various sections such as: Beverage industry This study would definitely benefit the soft drink firms in a way that services provided by various firms would be compared and also the five force model analysis of this sector reveal the potential threats to the existing players. Corporate The benefits to the corporate would be that they would be well versed with detailed information about various services provided by different firms so that it would easier for them to select a particular soft drink firm to assist them in various logistic problems. Researchers The major beneficiaries from the project would be the researchers themselves as this study would enhance their knowledge about the topic. They get an insight of the present scenario of this industry as this is the emerging industry in the beverage sector of the economy. Detail knowledge of various services provided by the soft drink firm will help researchers and others to pursue career in this industry.

Problems In Marketing research

Non Response of the Retailer Language problem And Understanding of the questionnaire of the retailer Giving any answer without understanding the question or without thinking.

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 STATISTICAL TOOLS
Representation of statistical data by diagram, graphs, charts, or pictures is more effective then tabular representation being easily intelligible to layman. Indeed diagrams are most essential whenever it is required to convey any statistical information to the generic public. The more important types of diagram which is use in statistical work are:-

BAR DIAGRAM Mode of diagrammatic representation of data is the bar diagram. In this method the bar of equal width are taken for the different items of the series. The lengths of the bar represent value of the variables concerned.

PI CHART It is a circle whose area is divided proportionately among the components by straight lines drawn from the centre to the circumference of the circle. When statistical data are given for a number of categories and we are interested in the comparison of various categories or between a part of the whole, such a diagram is very helpful in effectively displaying the data and the type of sampling is convenient and judgment sampling.

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CH: 2 Objective of the Study

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2. Objective of the Study

Since last few years, soft drink market is India at the end of the 2000-2010 decade. So both the soft drink major viz. Coca Cola and Pepsi has been emphasizing of placing their brand at as many outlets as possible so that could cope up with the competition spreading at a growth rate of 8-10%, it has forecasted that it would become Rs.9000 Crore market in India. The main object of this project is to comprehensively analyze the distribution of Coca-Cola and its strength in market against its rival Pepsi and also to be aware like the shopkeeper about the sale and display of the Cokes brand like Thumbs-up, Maaza etc.

This was done in two ways:a) Comprehensive market analysis was done by visiting various shops through out Ahmedabad. b) To ask the shop keeper about the promotions and schemes given to them to them in order to sell and promote their products.

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CH: 3 INTRODUCTION TO THE PROJECT

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3. Introduction to the Project

There is a huge fight between the two soft drinks giant Coca-Cola (Coke) and PepsiCo (Pepsi) to grab a large part of the Indian markets. The main reason, well the growing Indian middle class and the huge disposable income they have and also the increasing consumption of soft drinks by Indians. Pepsi and Coke both have brands attacking each other if Coke introduces one brand then Pepsi will bring another brand to fight it and vice a versa. Though Coke is this huge giant and Pepsi might be just a fly in front of it but the fly troubles and is much capable of fighting back and also winning. The main area where they can capture each others market is in the network of distribution channels they use with restaurant chains, pan walas, hotels and eateries to compete with each other. It is to these sellers where these two giants are vying for in order to capture a larger market share and trounce the other and that is why the project on the satisfaction of these members to see who is winning the competition. According to industry experts, the market for carbonated drinks in India is worth US$ 1.5 billion while the juice and juice-based drinks market accounts for US$ 0.25 billion. Growing at a rate of 25 per cent, the fruit-drinks category is one of the fastest growing in the beverages market. Sports and energy drinks, which currently have a low penetration in the Indian market, have sufficient potential to grow. The market for alcoholic beverages has been growing consistently. 'The Future of Wine', a report on the state of the wine industry over 50 years, suggests that the market for wine in India was growing at over 25 per cent per year. Major investments Private investment has been one of the key drivers for growth of the Indian food industry. The 'India Food Report 2008', reveals that the total amount of investments in the food processing sector in the pipeline for the next three years is about US$ 23 billion.

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The government has received around 40 expressions of interest (EoI) for the setting up of 10 MFPs with an investment of US$ 514.37 million. Reliance Industries Ltd has invested US$ 1.25 billion in a dairy project. Focusing on India as a rapidly growing market, US soft drinks giant PepsiCo would pump in an estimated US$ 152.30 million to set up four new food and beverages projects by 2012.

Geneva-based food service chain Global Franchise Architects (GFA) aims to open 250 stores around the world by March 2010, of which 100 will be in India.

Today India is one of the most potential markets with the population of around 1000 million people. There is a growth of 30% in the soft drink industry. These factors are the reason for the entry of two giants in the soft drink industry in the world to enter in the Indian market. The cola giants coke and Pepsi, together control almost 96% of entire Indian market while other companies has only share 4%. In a long span, a culture transforms itself over and over. The map is remade attitude change for better or worse. Processes are invented, hailed as revolutionary and discarded obsolete. So it was one hundred year was a very much different world from what we have today, but at least one sense, not very different at call. Many reasons have been advanced to explain the last century. With over 100 yrs. Of interrupted growth despite war, economic depression and other disturbances there be something that sets soft drink apart from the consumer culture.

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CH: 4 INTRODUCTIONS TO THE SOFT DRINKS MARKET

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4. Introduction to the Soft Drinks Market

The main production of soft drink was stored in 1830s & since then from those experimental beginning there was an evolution until in 1781, when the worlds first cola flavoured beverage was introduced. These drinks were called soft drinks, only to separate them from hard alcoholic drinks. This drinks do not contains alcohol & broadly specifying this beverages, includes a variety of regulated carbonated soft drinks, diet & caffeine free drinks, bottled water juices, juice drinks, sport drinks & even ready to drink tea/coffee packs. So we can say that soft drinks mean carbonated drinks. Today, soft drink is more favourite refreshment drink than tea, coffee, juice etc. It is said that where there is a consumer, there is a producer & this result into completion. Bigger the player, the harder it plays. In such situation broad identity is very strong. It takes long time to make broad famous. Coca Cola has its beginning in 1981 & since then has been one of the three most dominate players in this soft drink industry. The name soft drink was given by Americans as against hard drink, which is mainly alcoholic. So in general terms non-alcoholic drinks are considers as soft drink. Soft drink consists of flavour base, sweetener and carbonated water. The major participants involved in the production and distribution of soft drink are concentrate and syrup producers bottlers and retail channel concentrate-producers manufactures basis of soft drink flavour and send them to bottlers. Bottlers purchase the concentrate and add carbonated water and sometime sweeter and bottle or can the soft drink. This soft drink delivered to the customer accounts retail channels that sales or serve the product directly to the customers. In USA soft drink had existed since the early 1800s where many US druggists had concentrate blend of fruit syrups and carbonated soda water that they sold them at their soda fountains.

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4.1 History of Soft Drinks

1798 The term "soda water" first coined. 1810 First U.S. patent issued for the manufacture of imitation mineral waters. 1819 The "soda fountain" patented by Samuel Fahnestock. 1835 The first bottled soda water in the U.S. 1850 A manual hand & foot operated filling & corking device, first used for bottling soda water. 1851 Ginger ale created in Ireland. 1861 The term "pop" first coined. 1874 The first ice-cream soda sold. 1876 Root beer mass produced for public sale. 1881 The first cola-flavored beverage introduced. 1885 Charles Aderton invented "Dr Pepper" in Waco, Texas. 1886 Dr. John S. Pemberton invented "Coca-Cola" in Atlanta, Georgia. 1892 William Painter invented the crown bottle cap. 1898 "Pepsi-Cola" is invented by Caleb Bradham. 1899 The first patent issued for a glass blowing machine, used to produce glass bottles. 1913 Gas motored trucks replaced horse drawn carriages as delivery vehicles. 1919 The American Bottlers of Carbonated Beverages formed. 1920 The U.S. Census reported that more than 5,000 bottlers now exist. Early 1920's the first automatic vending machines dispensed sodas into cups. 1923 Six-pack soft drink cartons called "Hom-Paks" created. 1929 The Howdy Company debuted with its new drink "Bib-Label Lithiated Lemon-Lime Sodas" later called "7 up" Invented by Charles Leiper Grigg. 1934 Applied colour labels first used on soft drink bottles, the colouring was baked on the face of the bottle. 1952 The first diet soft drink sold called the "No-Cal Beverage" a ginger ale sold by Kirsch.

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1955 Coke enters for the first time into Indian markets 1957 The first aluminium cans used. 1959 The first diet cola sold. 1962 The pull-ring tab first marketed by the Pittsburgh Brewing Company of Pittsburgh, PA. The pull-ring tab was invented by Alcoa. 1963 The Schlitz Brewing Company introduced the "Pop Top" beer can to the nation in March, invented by Ermal Fraze of Kettering, Ohio. 1965 Soft drinks in cans dispensed from vending machines. 1965 The reseal able top invented. 1966 The American Bottlers of Carbonated Beverages renamed The National Soft Drink Association. 1970 Plastic bottles are used for soft drinks. 1973 The PET (Polyethylene Terephthalate) bottle created. 1974 The stay-on tab invented Introduced by the Falls City Brewing Company of Louisville, KY. 1977 Coke leaves India in order to protect its secret about the ingredients used in its soft drink 1979 Mello Yellow soft drink is introduced by the Coca Cola Company as competition against Mountain Dew. 1981 The "talking" vending machine invented. 1989 Pepsi Enters into India 1993 Coca Cola re-enters into India after the easing of economic norms

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CH: 5 Introduction to the Soft Drink Market in India

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5. Introduction to the Soft Drink Market in India

Although the beverage industry has been in existence for quite some time now, yet it is still at an infant stage considering its size and place in the market. India stands at third number in the consumption of beverage, behind United States and China. It accounts for almost 10 per cent of global beverage consumption. Today, it is being looked as a country that offers the greatest potential, even more so than China. This year, the beverage industry in India is being estimated to grow at 17% at Compounded Annual Growth Rate (CAGR). Non-alcoholic Drinks Company actually sees India as a potential market because of the kind of summer that India sees. The Coca-Cola Co reported its profit climbed 43 per cent in the second quarter to two billion dollar, getting a boost from double-digit unit case volume growth. The Indian CSD (carbonated soft drinks) market stands at 1.2 billion dollar and the fruit-based beverages and bottled water at 600 million dollar and 300 million dollar, respectively. The wine industry in India is one of the most sought after market at present and all eyes are on it. The budget announced by the finance minister is not being seen as very advantageous to the wine industry as it did not announce any significant or major benefits all round for it. It was expected to make wine sector a part of the food processing industry, which would lead to uniformity in the state-wise tax structures. The wine industry in India needs investment to grow to its rightful size of about 30 million cases and it is possible only with lower production and marketing costs, taxes and increased competition.

As far as the beer industry is concerned, age-old excise policy on liquor and multiform regulations are hitting the beer industry. The Punjab Excise Policy of 1995, which inadvertently discourages breweries, while encouraging distilleries, has put the brewers in the country in a total mess. The beer industry is clearly at a disadvantage. Repeated pleas have failed to bang the governments deaf ear. Apart from this, the government needs to make a uniform age limit to consume alcohol. Its different in different states. While an 18year old guy can consume alcohol in Goa, you need to be at least 21 to do the same in Mumbai. In Punjab, its even higher where it is kept at 25 years. The National law is 21 years. The budget was expected to cut down the taxes on beer that is more than most of the

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countries in the world. While the average global taxes on price of the beer are 33.6 per cent, in India its about 49 per cent and therefore, affordability of beer in the country is lowest compared to world standards. However, the impact on non-alcoholic industry has been different. For e.g., packaged coconut water will be cheaper by rupees three for 200ml as the retail prices have been reduced from Rs 15 to Rs 12, thanks to the abolition of a 16 per cent excise duty. The finance minister has also totally withdrawn the 16 per cent excise duty on tea and coffee mixes and puffed rice. India (1002 Mn kgs), China (990 Mn kgs), Sri Lanka (318.7 Mn kgs) and Kenya (286.0 Mn kgs) accounts for 80 percent of the worlds tea production. In May, tea production in India rose to 71,374 tonnes from 70,267 tonnes a year before. However, output has declined to 215.84 million kg till May this year from 240.24 million kg last year. The budget has also made dairy majors like Amul, Mother Dairy and Nestle happy because the customs duty on bactofuges, that separates bacteria from milk, and increases the Punjab Excise Policy of 1995 shelf life of milk, has been abolished. On a bactofuge that costs between Rs 1.5 two crore, the companies will benefit rupees eight to Rs 10 lakh a piece. More and more companies are entering and creating niche for themselves in the Indian budget industry, the latest being the fast moving consumer goods (FMCG) company Dabur. It is coming up with a new fruit flavored beverage called Real Burst.

Indian soft drinks story is old since the time of Rajas Maharaja as they enjoyed several soft drink like lassie, jaljeera, sharbat and tea etc. Now the Indian people have changed their consumption pattern into soft drinks. According to Pepsi philosophy, its the madness that encourages executive to think, to conjure up those creative tactics to knock the fizz out. The warriors are face to face once again here in India with different strategies and tactics to attack the rival. Coca cola is focusing upon the joint ventures with the existing bottlers to enhance its control on manufacturing in marketing of its products range and attain the equality standards of its class. Countering it Pepsi has taken the battle in its own hands by floating as investment of $95 billion to set Pepsi Co. India holdings as a subsidiary for company owned bottling operation (COBO). Both the companies are following different path to reach the same destiny i.e. fetch the bigger portion of aerated soft drink market in India.

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Serving annually against the world average of 80 bottles a month. Therefore, they are putting in their best effort to woe the Indian consumer who has tea, coffee etc. that is why water tea, coffee and nimbu pani are considered as the competitor of soft drinks. Cola is well set with its 53 bottling sites throughout the country giving it an edge, over competition by processing a well built and distribution set up. On the other hand Pepsi with 2 more years in India has been able to set an image of winner this time in India and get the pulse of Indian soft drink market. The soft drink giants are leaving no stone unturned and her for the long-terms. Coca Cola has been penetrating the market through its wide product range with a determination to change consumption pattern of soft drink in India. Firstly, they upgraded the whole industry by introducing 300 ml bottles, which in turn had given the industry a booming growth of 20% as compared to the earlier 5 % they want to develop a Coca culture and are working on a strategy of offer soft drink in every possible package. In Coca Cola camp, the idea of competition has not come from Pepsi, but from the other beverages such as Tea, Coffee, Nimbu Pani and Water etc. Pepsi is quite aggressive in its approach to Indian consumer. They are desperately working on the strategy to work for 1.5 hour to buy a bottle of soft drink in comparison to the international norms of 5 hour, a major hurdle to cross over for both the athletes for getting No. 1 position. India is one of the lowest soft drink consuming countries in the world. According to per capita in India is 5 bottles per year, while highest consumption in USA of 800 bottles per year. Lower, Lower middle & upper middle class consume 91% of soft drink market. The consumption diagram graph of soft drink has never, decrease. If once, it has increased. It is increasing at 24 25% per year. Even in India the market is constantly growing in 1993, the people of India consume only 0.7 lt/head, while in 1995 it increased from 0.7 to 0.93 lt/head, in 1997 it was 1.14 lt/head & in 2001 it was 1.62 lt/head.

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Table 1.1: No of Bottles Produced

Year 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001

No of Bottles produced (million) 1968 2070 2195 2490 2800 3000 3240 4000 4450 4920 5670 6480 7000 Source: Scridb Research Paper

Market Share in India

The two global majors Pepsi & Coca Cola dominate the soft drink industry market. Coca Cola, which had winded up its business from India during the introduction of IERA regime re-entered in India after 16 years letter in 1993. Coca Cola has acquired a major soft drink market by buying out local brands like Thums up, Limca & Gold Spot from Parle Beverages. Pepsi although started a couple of years before Coca Cola in 1991, right now it has lower

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market share. It has brought over Mumbai based Dukes range of soft drinks. Both Cola manufactures Pepsi & Coca Cola come up with their own market share & claim to have claimed to increase their share Table 1.2: Market Share (in %) 2010

Brand Name Market Share (org figure) Pepsi Coca Cola Other Brands

Market Share (IMRB) 35.6% 57.8% 6.6%

Source: Economic Times

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Ch: 6 Company Profile

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6. Company Profile

6.1 Company Profile of Coke

Figure 5.1: CEO Coke

DOUGLASN DAFT
Chairman of the board and Chief Executive officer ABOUT THE COCA COLA COMPANY CEO
Douglas N. Daft was elected chairman board of director and chief executive officer of the Coca-Cola company on Feb. 17, 2000 Mr. Daft is the 11th chairman of the board in the history of company. Mr. Daft 60 joined the company in 1969 as planning officer in Sydney, Australia office. He held of increasing responsibility throughout Asia and in 1982 was named vice president of Coca-Cola Far East Ltd.

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In Dec.1988 Mr. Daft was named president of north pacific division and president of CocaCola (Japan) co. Ltd. He moved the companys Atlanta headquarters. In 1991 to assume the responsibility of president of the pacific group and in 1991 his responsibility was expended to include the com. Africa Group and Schweppes Beverage Division as well as the middle and Far East Group. Mr. Daft was elected president and Chief operating officer of the Coca-Cola com. In Dec 99. He serves on the board of Sun Trust Banks, the boys and girls club of America Catalyst the Cerge-Ei foundation (Centre for economic Research and Graduate Education-Economic Institute ) in the Czech Republic , the Lauder Institute for Management and International Studies at the University of Pennsylvania, the Prince of Wales International Business Leader Forum , the Grocery Manufactures of America The British American Chamber of Commerce ,the G100,the Woodruff Arts Centre, the Commerce Club, and the McGraw-Hill Companies. Mr. Daft is a trustee of Emory University, the American Assembly and the Centre for Strategic &International Studies. He is also a member of the Trilateral Commission, the Business Council and The Business Round Table.

AROUND THE WORLD

Although Coca-Cola was first created in the United State it quickly became popular wherever it went. Their first International bottling plants opened in 1906 in Canada, Cuba and Panama soon followed by many more bottling plants in different countries .Today we produce more than 300 brands in 200 courtiers and more than 70% of their income comes from outside the U.S, but the real reason they are truly global company is that our product meet the varied taste preferences of consumer everywhere.

COKE PARTNERS
The Coca-Cola Company works with a wide variety of organization to support health, fitness and good nutrition. The Coalition for Healthy and Active America (CHAA) CHAA was formed in 2003 by concerned organization and national leader to educate parents, children, schools and communities about the critical roles physical activity and nutrition education play in reversing the alarming trends of childhood obesity. As a non profit National grassroots coalition, CHAA is a various advocate for developing health and active lifestyle for Americas youth. CHAA is 32

committed to working with schools to rededicate time for physical fitness giving parents the freedom to their children make their own nutritional choice, building school business model relationship that benefit our families by support healthy and active lifestyle and finding solution to the childhood obesity that are both responsible and realistic American Council for fitness and nutrition. The American Council for Fitness and Nutrition (ACFN) is a group of food, beverage and consumer products companies, non profit organization and trade association working together to improve the health of Americans, particularly youth by encouraging a healthy balance between fitness and nutrition. The cornerstone of all ACFN initiative is the idea that lasting solution to the nations obesity problem must be based on sound science and behavioural research. Such policies are likely to help parents and their children develop eating and exercise habits that lead to a healthier life. Grocery Manufacture of America The Grocery Manufacture of America (GMA) represents the food ,beverage and consumer products industry on key issue that affect the ability of brand manufacture to market their products and deliver superior value to the consumer. International Food Information Council (IFIC) Foundation the IFIC Foundation is a public education foundation disseminating sound, science-based information on food safety nutrition and health. International Life Science Institute (ILSI) is a non profit worldwide foundation that seeks to improve the well being of the general public through the pursuit of balance science. Its goal to further to understanding of scientific issue relating to nutrition food safety toxicology risk assessment and industry.Kidnetic.com is a fun interactive website that emphasize healthy achieved through s balance of physical activity and responsibility eating habits The website gives young people and their parents the tools and idea to help change habits and plant the seeds for healthy families tomorrow.Kidnetic.com is a program of the International Food Information Council (IFIC) Foundation. National Association for Sport and Education Association for sport and Physical Education seeks to enhance knowledge and professional practice in sport and physical activity through scientific study and dissemination of research based and experimental knowledge to members and public. National Soft Drink Association (NSDA) is the trade association for America Soft Drink Industry serving the pup

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THE PRESENT POSITION OF COKE IN INDIA

Coke is a house hold name and in the lips of every one. In present time every person knows the name of Coca Cola since India is one of the biggest markets for the Soft Drink Company and sultry summer from March to the end of October and a huge population has immensely helped in the sales of coke in India. Last year the market share of Coca-Cola was not specific. In this year companys top management adopted new policy and increased the rate of all brands of Coke. By this decision top management determined the rate of 300ml Rs.15.And the brand of 200ml determine the rate of this brand Rs.10 only .By which medium size family can buy and enjoy Coke. By this decision company marketing share has been increasing. In present time Coke captured approximate 57.8% market share. Now Coke has made a huge shift away from the distributors serving the retailers according to the type of service. Due to this Coke has gained appropriate position in the minds of the retailer .It has now emerged as the winner and has a good image in the market Cola have thus gained a status symbol mainly attributed to its standard and well penetrated, advertising and extensive distribution network. Total soft drink segment is growing at the rate of 10% per year still International standard area considered the per capita consumption of these serving in rock bottom, less than even our neighbour Pakistan and Bangladesh where it is four more as much. So with kind of a market potential coke entered in India in 1991. The government in Pune in 1992 allowed the plant to establish its first bottling plant. Now the company has grown to about 59 bottling plants throughout India.

COKE BRANDS IN INDIA ORIGIN COCA-COLA:

Developed in brass products in 1886, coca-cola is the most recognised and admired trademark around the globe. Not to mention the best selling soft drink in the world.

SPRITE:
In 1961, a citrus flavoured drink made its U.S. debut, using sprite boy as inspiration for the name. This elf with silver hair and a big smile was used in 1940s advertising for coca-cola.

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Sprite is now the fastest growing major soft drink in the U.S., and the worlds most popular lemon-lime soft drink. But In India It Is not of citrus in nature and is pure caffeinated carbonated water.

FANTA:
The name FANTA was first registered as a trademark in Germany in 1941, when it was used for a few years for the soft drink created from available material and flavours. The name was then revived in 1955 in Naples, Italy, when it was used for the FANTA orange drink we know today. It is now the trademark name for a line of flavoured drink sold around the world.

DIET COKE:
The extension of the coca-cola name begun in 1982 with the introduction of diet coke (also called coca-cola light in some countries). Diet coke quickly becomes the number- one selling low-calories soft drink in the world.

VANILA COKE:
It is an ice-cream in taste launched in 2004. But it failed miserably in the Indian Markets

LIMCA:
This is thirstquenching beverages features a fresh and light lemon-lime taste and a light hearted attitude. The Limca brand was introduced in 1971 and acquired by the coca-cola company in 1993.

MINUTE MADE PULPY ORANGE:

This is a one of a kind natural orange drink introduced by Coke. It does contain natural pulp but the juice inside is manufactured the same way as all the other drinks are manufactured in the coke brand.

MAAZA:
Maaza launched in 1984 and acquired by the coca-cola company in 1993, is a noncarbonated mango soft drink with a rich, juicy natural mango taste. 35

THUMPS UP:
In 1993, the coca-cola company acquired this brand, which was originally introduced in 1977. Its strong and fizzy taste makes it unique carbonated Indian cola. It has the highest market share in the Indian Soft drink industry.

KINLEY WATER:
This is the thirst quenching beverages features fresh the water with the saturated oxygen level.

GEORGIA:
This was first introduced in 2004 it is hot tea and coffee products by Coke it is mostly sold in restaurants and not in the local shops it is being sold both in the hot and the cold beverages format.

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6.2 The Company Profile of Pepsi Figure 5.2: CEO PepsiCo

INDRA NOOYI
Chairman of the board and Chief Executive officer ABOUT THE PEPSICO CEO
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.

37

Business officials rave at her ability to drive deep and hard while maintaining a sense of heart and fun. According to Business Week, since she started as CFO in 2000[2], the company's annual revenues have risen 72%, while net profit more than doubled, to $5.6 dollars billion in 2006. Nooyi was named on Wall Street Journal's list of 50 women to watch in 2007 and 2008, and was listed among Time's 100 Most Influential People in The World in 2007 and 2008. Forbes named her the #3 most powerful women in 2008. While CEO of PepsiCo in 2008, Indra Nooyi earned a total compensation of $14,917,701, which included a base salary of $1,300,000, a cash bonus of $2,600,000, stocks granted of $6,428,538, and options granted of $4,382,569.

AROUND THE WORLD

PepsiCo is a world leader in convenient snacks, foods and beverages with revenues of more than $43 billion and over 198,000 employees. PepsiCo, Inc. is founded by Donald M. Kendall, President and Chief Executive Officer of Pepsi-Cola and Herman W. Lay, Chairman and Chief Executive Officer of Frito-Lay, through the merger of the two companies. Pepsi-Cola was created in the late 1890s by Caleb Bradham, a New Bern, N.C. pharmacist. Frito-Lay, Inc. was formed by the 1961 merger of the Frito Company, founded by Elmer Doolin in 1932, and the H. W. Lay Company, founded by Herman W.Lay, also in 1932. Herman Lay is chairman of the Board of Directors of the new company; Donald M. Kendall is president and chief executive officer. The new company reports sales of $510 million and has 19,000 employees. Pepsi-Cola Company - Pepsi-Cola (formulated in 1898), Diet Pepsi (1964) and Mountain Dew (introduced by Tip Corporation in 1948).Frito-Lay, Inc. - Fritos brand corn chips (created by Elmer Doolin in 1932), Lay's brand potato chips (created by Herman W. Lay in 1938), Cheetos brand cheese flavored snacks (1948), Ruffles brand potato chips (1958) and Rold Gold brand pretzels (acquired 1961).Mountain Dew launches its first campaign "Yahoo Mountain Dew ... it'll tickle your innards."

PEPSI PARTNERS
PepsiCo also has formed partnerships with several brands it does not own, in order to distribute these or market them with its own brands.

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Frappuccino, Starbucks Double Shot, Starbucks Iced Coffee, Mandarin (license), D&G (license), Lipton Brisk, Lipton Original Iced Tea, Lipton Iced Tea, Ben & Jerry's Milkshakes, Dole juices & juice drinks (license), Sunny Delight (produced by PepsiCo for Sunny Delight Beverages)

POSITION OF PEPSI IN INDIA

Total soft drink segment is growing at the rate of 10% per year still International standard area considered the per capita consumption of the Indian Soft drink industry is rock bottom, less than even our neighbour Pakistan and Bangladesh where it is four times more than the Indian consumption rate.PepsiCo established its business operations in India in the year 1989 It is now the 4th largest consumer products company in India PepsiCo has invested more than USD 1 billion in India since its establishment. PepsiCo has a diverse range of products from Tasty Treats to Healthy Eats It provides direct and indirect employment to 150,000 people in India It has 41 bottling plants in India and fast catching up to Coke, of which 13 are company owned and 28 are franchisee owned It has 3 state-of-the-art food plants in Punjab, Maharashtra and West Bengal

BRANDS OF PEPSI IN INDIA PEPSI:

Pepsi is a hundred year old brand loved by over 200 million people worldwide. The largest single selling soft drink brand in India is the ubiquitous 'socialiser' at every occasion 1886, United States of America. Caleb Bradman, the man with a plan, got on to formulate a blockbuster digestive drink and decided to call it Brads drink. It was this doctors potion that was to become Pepsi Cola in 1898, and eventually, Pepsi in 1903. Pepsi has always played on the front foot and since its inception has come out with revolutionary concepts like Diet, 2L bottles, recyclable plastic cola bottles and the enviable My Can.

7 UP:
7UP, the refreshing clear drink with natural lemon and lime flavour was created in 1929. 7UP was launched in India in 1990 and its international mascot Fido Dido was used for advertising in 1992 to position the brand as a cool drink for youngsters. Fido became an

39

instant hit with his trendy look, laid back attitude and refreshing take on life. During the brands early years in India, 7UP gained market leader status in the lemon lime category by being one of the first to be nationally distributed as well as being marketed as a healthier alternative to other soft drinks

TROPICANA:
Tropicana was founded in Bradenton, Florida, USA, in 1947. And is now enjoyed almost everywhere in the world. Carefully nurtured for over 50 years, it has matured into one of the most respected beverage brands. Today it is the World's no. 1 juice brand and is available in 63 countries. Since 1998, it has been owned by PepsiCo, Inc. Tropicana Premium Gold was re-launched as Tropicana 100% in year 2008

SLICE:
Slice was launched in India in 1993 as a refreshing mango drink and quickly went on to become a leading player in the category. In 2008, Slice was relaunched with a 'winning' product formulation which made the consumers fall in love with its taste. With refreshed pack graphics and clutter breaking advertising, Slice has driven strong appeal within the category.

NIMBOOZ:
Nimbooz was launched in India this year on the 28th of February 2009. Latest addition to portfolio of Pepsi Beverages Nimbooz is a great tasting product which has capitalized on the existing familiarity & behavior of high frequency consumption of unpackaged / Home made nimbu pani. It has been true to its Asli Indian Identity by owning and appropriating nimbu Pani Codes such as the Matka (Earthen Pot) and Squeezer.

MOUNTIAN DEW:
The main formula of Mountain Dew was invented in Virginia, named and first marketed in Johnson City, Tennessee and Knoxville, Tennessee in 1948. In India, Mountain Dew set the soft drink category ablaze in 2003 with their iconic launch campaign Cheetah Bhi Peeta Hai. 2007, the brand was re-launched with a completely new, punchier formulation with communication that aimed at forging a strong emotional connect with our audience. Thus came about the "Darr Ke Aage Jeet Hai" campaign, which acknowledged that fear was a

40

very real and relevant aspect of the adventurous world and Mountain Dew, as a brand wanted to encourage all youth in their moment of fear, to believe in themselves and just go for it because beyond fear, lies victory.

MIRINDA:
Now when we think Mirinda, we think orange. But this soft drink brand has many other fruit flavors; Mirinda Lemon was launched in 1998 & other flavors like Apple & Batberry that were launched as in & outs. Mirinda has always been about a great orange taste, which is now synonymous with the brand. These were communicated through our great campaigns; the memorable Mirinda Men to Taste Aisa Chaye Character Fisla Jaye.

AQUAFINA:
Aquafina was first launched in USA in the year 1994 and with its unique purification system and great taste; Aquafina soon became the best selling brand in the country. In India, Aquafinas journey began with the Bombay launch in 1999 and it was rolled out nationally by the year 2000. On the strength of its brand appeal and distribution, Aquafina has become one of India's leading brands of bottled water in a relatively short span.

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CH: 7 COMPARITIVE ANALYSIS OF COKE AND PEPSI

42

7. Comparative Analysis of Coke and Pepsi

The soft drink market all over the world has been witnessing to neck to neck battle between the two major players, coca-cola and he Pepsi since the very beginning. The thirst quenchers are trying to have the major chunk of the pie of carbonated soft drink market. Both the player is spending their energies in building capacity, infrastructure, promotional activities etc. Coca-cola being 11 years older than Pepsi has dominated the scene in most of the soft drink markets in the world and enjoying leadership in terms of market share. But the cocacola people are finding it hard to keep away Pepsi, which has been narrowing the gaps regularly. the two are posing threats to each other in every nook and corner of the world wide coca-cola has been earning most of its bread and butter through beverages sales, Pepsi has multi products portfolio with some portion from the same business. The two warriors are face to face once again herein India with different strategies and tactics to attack the rivals. Coca-cola is focussing upon the joint venture with the existing bottlers (Fobo) franchise owned bottling operations to enhance its control on manufacturing and marketing of its products range and attain quality standards of its class. Countering its Pepsi has taken the battle of its own hands by floating as investment of $ 95 billion to set Pepsi Company. India holdings, as subsidiaries for (Cobo) company owned bottling operations. Both companies are following different paths to reach the same destination i.e. to grab a bigger portion of aerated soft drink market. Both consider India as a Hugh potential market, as per capita consumption here is mere 3 serving annually against the world average of 80. Therefore, they are putting there best efforts to woo the Indian consumer who has to work for 1.5 hours to buy a bottle of soft drink. In comparison to international norms minutes, a major hurdle to cross over for the athletes for getting no. 1 position comparison to the inter. Coca-cola is well set with its 53 bottling sites through out the country giving it an edge over competition by processing a well-built bottling and distribution set up. On the other hand, Pepsi, with two more years in India, has been able to set as image of a winner in India and has been able to get the pulse of the Indian soft drink market. The soft drink giants are leaving on stone unturned and her for the long terms.

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Coca-cola has been penetrating the market through its worldwide products range with a determination to change consumption pattern of soft drink in India. Firstly, they upgraded the whole industry by introduction 300ml bottles, which in turn had given the industry a booming growth of 20% as compared to the earlier 5%. They meant to develop a coca culture here and are working on a strategy to offer soft drink in every possible package. In Coca-Cola camp, the idea of competition has not come from Pepsi. But from the other beverages such as tea, coffee, nimbus, pani, water etc. Coke has used a large sum on the visibility of its red and white logo. They have been going along with aggressive marketing by enrolling Amir Khan, Akshay Kumar and their advertisement to endorse their brand, the role models of its targeted consumer the teenagers

Pepsi is quite aggressive in its approach to Indian consumer. They are desperately working on the strategy to be the winner in the hot cola war between two big barons. According to Pepsi philosophy, it is the madness that encourages executive to think, to conjure up those creative tactics to knock the fizz out of their competition.. Pepsi have increased the fizz in the market place by introducing the dispensers called fountain Pepsi and have been enjoying a lead over its rival there. Coca-cola on the other hand, has been working in the saying slow and steady wins the races side by retailing to every more of its competitors. They have procured the shield of thumps up with a handsome market share in Indian soft drink market. Countering commercial that used two chimpanzees to rock a snoop at coke, thumps up with the ad line, dont be bender, and taste the thunder Also. Thumps up has been positioned now them very near to that young image of Pepsi and giving it a through time. These cool merchants have put everything on fire. Its coke gets the status of the official drink of the wills. World cup, Pepsi blushes as nothing official about it. As thumps up projected as saare jahan se achcha, pepsi was passionate enough with freedom to be and now the yeh dil maange more when thumps up came with thunder blast, the offered Pepsi stuff card. If red is meant for coke, Pepsi chosen to be blue. In the U.S., its a closer race between coke and Pepsi, said Bonnie Herzog, an industry analyst with smith Barney. But when you take a look outside the U.S.. I think coca-cola has the major lead.

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Indeed, 75% of Cokes profits now come from the foreign markets it dominates. While back home the slugfest has gone on for decades. I think makes us all better, said Pepsi vice president of marketing; Katie Lacey. Its alone thing about working in a very competitive category. You absolutely are on your toes. We do not let it dictate how are or think everyday. We are focused on how we are going to grow our brands. With public opinion split, theres is no. of problem for both coke and Pepsi. Volumes of carbonated soft drink I north America is growing at less than one present a year. Meanwhile, sports drinks like Gatorade are growing at 15% year. And bottled water is expending by 26 permanent annually. In a saturated soft drink market; water is where the growth and money are, according to Herzog. For now, Pepsis Aquafina is beating cokes Dasani in the water wars. Its just the latest front in a battle between hundreds of Coke and Pepsi brands. Diet coke vs diet pepsi, sprite vs. mountain dew, nestle vs. Lipton Tropicana vs. minute maid. And the list goes on. But for Pepsi- its not all about drinks. Some 60% of its profits come from its snack business. From Fritos to lays to crack jack and Tostitos, Pepsi has virtual monopoly, with no competition with coca-cola. They are going after the younger consumer who purchase a single serve products, at a convenience store 9-13, said Todd Stender, who fellows the company at Crowell Weedon and co., and thats really where the profits are. Cokes, meanwhile, just scored a big coup by winning the soft drink business at subway, a fast food chain now bigger that McDonalds, that had previously served only Pepsi.

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Figure 6.1: Market Share of Indian Beverage Companies [Market Share (in %) 2010]

Market Share Other Indian Companies, 6.60%

PepsiCo India, 35.60% Coca-Cola India , 57.80%

Coca-Cola India PepsiCo India Other Indian Companies

Source: Economic Times, org figure The Pi Chart Shows That Coke has a major lead in India Capturing the huge Chunk of the market share while Pepsi on the other hand has very less Market share compared to coke but it is growing.

Table 6.1: Market Share of the Respective Companies [Market Share (in %) 2010]

PepsiCo (2009-10) Pepsi 13.1 % 7 UP 5.8% Mirinda Lemon 0.4% Mirinda Orange 8.9% Mountain Dew 5.8%

Coca-Cola (2009-10) Coca Cola 8.2% Thums Up 16.4% Sprite 12.2 % Limca 10.9% Fanta 10%

Source: Economic Times

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The above table shows the dominance of Coca-Cola in India. Coke had used a good strategy in buying of established Indian drinks Like Thumbs-up and Limca from Parle Agro group of companies which now consist of 26% of the market share and thus grabbing a huge piece of the market. Pepsi on the other hand is mostly surviving on its Pepsi cola brand of drinks which consist of 13.1% which has the second largest market share after Thumbs-up. Pepsi has a reason to smile as the 7-up and mountain dew brands are growing fast and capturing the market share slowly but steadily.

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CH: 8 MARKET RESEARCH ANALYSIS

48

8. Market Research Analysis

8.1 Analysis of the Questionnaire

1) Which soft drinks company products do you sell?

Coke

Pepsi

Both

Table 8.1: Retailers of Coke & Pepsi

Compan y Coke Pepsi Both

Retaile rs 72 25 3

Figure 8.1: Graph of Number of retailers Of Coke and Pepsi

Retailers

Both

Company

Pepsi

25 Retailers 72

Coke

0%

10%

20%

30%

40% Percentage

50%

60%

70%

80%

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It was a rare sight to see a restaurant or a panwala selling both the products. And if you see one then he might be the most hassled person on earth but the retailers of Pepsi are quite few compared to coke in Ahmedabad. In an area of Vijay Char Rasta alone there is only a single retailer of Pepsi compared to 12 retailers selling Coke

2) Does the soft drink company provide you with refrigeration facilities?

Coke Pepsi

Yes Yes

No No

Yes the company does provide refrigeration facilities to the retailer who has to be an exclusive seller of either Coke or Pepsi. If the person id selling both he might have to purchase the fridge or use his own fridge to sell the product. This is one of the main reasons that there are extremely less retailers who sell both

3) Dose the company provide you with mechanics for the repair and
maintenance of fridges?

Coke Pepsi

Yes Yes

No No

The company does provide mechanics and maintenance facilities free of cost to the retailer here no discrimination is done when it comes to the repair and maintenance of the fridges among retailers. The Maintenance and repair of the fridges are done free of cost

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4) What are the conditions of bottles provided by the company?

Coke Pepsi Excellent Excellent Good Good Neutral Neutral Bad Bad Worse Worse

COKE
Table 8.2: Conditions of Bottles of Coke rated by Retailers

Conditions EXCELLENT GOOD NEUTRAL BAD WORSE

Coke 24 36 14 16 10

Fig 8.2: Graph of Conditions of bottles in Coke

Coke 40 35 30 25 20 15 10 5 0 EXCELLENT GOOD NEUTRAL Condition BAD WORSE 14 24 16 10 Coke

36

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Table 8.3 Weighted Mean of the Conditions of bottles of Coke

Condition s Coke EXCELLENT 24 GOOD 36 NEUTRAL 14 BAD 16 WORSE 10

100

Rank 1 2 3 4 5

W.A 24 72 42 64 50 252

Weighted MEAN 2.52

Here the mean after taking out the weighted average is 2.52 which is exactly the middle mark for coke where the retailers are neither satisfied nor dissatisfied with the quality of bottles that come from coke. They find the quality ok thus that means there is room for improvement for the quality of bottles provided by coke.

PEPSI

Table 8.4: Conditions of Bottles of Pepsi rated by Retailers

Conditio ns EXCELLEN T GOOD NEUTRAL BAD WORSE

Pepsi 22 22 32 14 10

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Figure 8.3: Graph of the Conditions Of bottles Of Pepsi

Pepsi 35 30 25 20 15 10 5 0 EXCELLENT GOOD NEUTRAL Conditions BAD WORSE 14 10 Pepsi 22 22 32

Table 8.6: Weighted Mean of Conditions Of bottles Of Pepsi

Here average

the is

weighted mean lower in pepsi bottles.

Condition s Pepsi Rank W.A EXCELLENT 22 1 22 GOOD 22 2 44 NEUTRAL 32 3 96 BAD 14 4 56 WORSE 10 5 50

100 268

Weighted Mean 2.68

than in coke signalling that the quality is a bit less than compared to coke when it comes to

Both the companies have certain rules and regulations considering the refilling of old bottles and then using new bottles. Both the companies sterilises the bottles before reusing them. Here the retailers are more satisfied with the conditions of the bottles of Coke

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5) If the bottles are broken in transit or in the shop due to natural causes
or calamities then does the company bear the loss for you? Coke Pepsi Yes Yes No No

Here both the companies follow same policy of cap in the bottle. If the bottle is broken in transit the company replaces the bottle and yes the company replaces the bottle any time when it is broken provided the cap of the bottle is still intact.

6) If the products have crossed their expiry dates then dose the company
replace the products for you? Coke Pepsi Yes Yes No No

7) If yes then
Coke Replace at your own cost Pepsi Replace at your own cost Buy Back Buy Back Replace products free of charge Replace products free of charge

The expiration of bottles or people not consuming the drinks is a rare case. But just in case both the companies replace their products if it has crossed the expiration date free of charge.

8) How many distributors of the company are there in your area?

Coke Pepsi 0-2 0-2 2-4 2-4 4-6 4-6 more than 6 more than 6

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A particular area consist of maximum 3 to minimum 1 distributor depending on the size and type of area Vatva and Naroda have 3 distributors while Paldi and Ellis bridge have 2 distributors and Vijay char Rasta area or Memnagar has only 1 distributor for the drinks. In paladin & bhatta Area has one Pepsi Seller and also has one seller Near NID and one in Shantivan which is extremely less compared to Coke

9) When do you replenish your stock?

Weekly Fortnightly Monthly Quarterly

Table 8.7: Time of Replenishing of Stock By retailers Time WEEKLY FORTNIGHTL Y MONTHLY QUATERLY Repleni sh 85 15 0 0

Figure 8.4: Graph of Replenishment of Stock by Retailers

Replinhment

QUATERLY MONTHLY FORTNIGHTLY WEEKLY Time 0

0% 0% 15 85

10

20

30

40

50

60

70

80

90

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The retailers who replenish fortnightly are mostly users of wending machines where they replenish their stock fortnightly

10) What is the quantity you usually order?

The quantity is usually ordered with depending on the demand or the amount the retailers thinks he can sell. Usually the pan walas order 2 to 3 crates. But there were other retailers ordering more or less than the above specified quantity

10) Are you satisfied with your replenishment you get?

Coke Very Satisfied Very Dissatisfied Pepsi Very Satisfied Very Dissatisfied

Satisfied Satisfied

Neutral Neutral

Dissatisfied Dissatisfied

COKE

Table 8.8: Satisfaction level of Replenishment of coke

Satisfactio n Level Very satisfied Satisfied Neutral Dissatisfied very dissatisfied

Replenishme nt of Coke 23 17 34 24 2

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Table 8.9: Weighted average mean of replenishment satisfaction level

Satisfaction Level Very satisfied satisfied Neutral dissatisfied very dissatisfied

Replenishment of Coke 23 17 34 24 2
100

Rank 1 2 3 4 5

W.A 23 34 102 96 10 265

Weighted Mean 2.65

Fig 8.5 Graph of Satisfaction level of Replenishment of coke

Replenishment of Coke

very dissatisfied dissatisfied Neutral satisfied Very satisfied 0 %

2 24 34 Replenishment of Coke 17 23 5 10 15 20 25 30 35

The retailers are not satisfied with the replenishment of Coke as retailers who mostly want to sell Thumbs-up or Sprite only are the ones who are unsatisfied with the replenishment of

57

coke as 1 to 2 crates of Coke bottles are pushed along together with thumbs-up or Sprite for the retailers to sell. PEPSI
Table 8.10: Satisfaction level of Replenishment of pepsi

Satisfacti on Level Very satisfied satisfied Neutral dissatisfied very dissatisfied

Replenishme nt of Pepsi 12 37 34 17 0

Table 8.11: Weighted average mean of replenishment satisfaction level Satisfaction Level Very satisfied satisfied Neutral dissatisfied very dissatisfied Replenishment of Pepsi 12 37 34 17 0
100

Rank 1 2 3 4 5

W.A 12 74 102 68 0 256

Weighted Mean 2.56

Fig 8.5 Graph of Satisfaction level of Replenishment of pepsi

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Replenishment of Pepsi

very dissatisfied dissatisfied Neutral satisfied Very satisfied 0 %

0 17 34 37 12 5 10 15 20 25 30 35 40

Replenishment of Pepsi

The Retailers of pepsi are more satisfied with the retailers of coke as there is no pushing incidence when it comes to pepsi. The market for Pepsi is 13% which is the second highest in the country after thumbs-up. They give with retailer whatever replenishment they need The retailers are more satisfied with the replenishment of Pepsi rather than coke because the people of Ahmedabad generally favour Thumbs-Up rather than coke and thus the preference of coke is low compared to thumbs-up so sometimes 1 to 2 cerates are sometimes pushed to the retailer to sell coke unlike Pepsi where it sells the products which the retailer desire

11) What is the lead time?

The lead time is one day from the order given. If Order is given on Monday the product ordered arrives at the doorstep of the retailer on the very next day i.e. Tuesday

12) Are you satisfied with the lead time?

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Coke Very Satisfied Very Dissatisfied Pepsi Very Satisfied Very Dissatisfied

Satisfied Satisfied

Neutral Neutral

Dissatisfied Dissatisfied

Here the retailers are very satisfied with the lead time and have no negativity about it.

13) Do you place order with the dealer or directly with the company?

Coke Pepsi

Dealer Dealer

Company Company

COKE
Table 8.12: Distribution Level in Coke

Coke Dealership Company 45 55

Table 8.6: Graph Distribution Level in Coke

[

60

Coke Coke 60 50 40 30 20 10 0 Dealership Company % 45 55

Coke has a mixture of dealership and direct company to middle man dealings. The company has its own dealers and the brand of thumbs-up and sprite which have the highest market share. The company 5 years ago use to deal with the retailers through dealership but now slowly removing with the middle man and directly deals with the retailers

PEPSI
Table 8.13: Distribution Level in Pepsi

Pepsi Dealershi p Company 100 0

Table 8.7: Graph Distribution Level in Pepsi

[

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Pepsi Pepsi 120 100 80 60 40 20 0 dealership 0 Company % 100

PepsiCo dose not have direct dealings with the retailers. It first sells it product to the dealers and then from dealers to the retailers. All the grievances and orders or communication for PepsiCo is done by the dealers

14) Any schemes or discounts in bulk buying?

Coke Pepsi

Yes Yes

No No

The company dose gives discounts or gifts in bulk buying. For example the company sometimes give an extra crate of coke depending on the amount of order. Sometimes it may not be in margins or crates of coke but in gifts like a handbag or wall clock or items to or associative needed by the shop

62

15) What are the payment conditions of the company?

Coke pay in advance the salesman later Pepsi pay in advance the salesman later

pays on arrival of the product pay on arrival of the product

pay to pay to

Here in both the companies the retailers have to pay check to the sales man on arrival of the product.

16) Are you satisfied with the payment conditions?

Coke Very Satisfied Very Dissatisfied Pepsi Very Satisfied Very Dissatisfied

Satisfied Satisfied

Neutral Neutral

Dissatisfied Dissatisfied

Here the retailers of both the companies are extremely satisfied by the company norms of payment and dont have any negativities about it.

17) Are you satisfied with the margins given to you by the company?

Coke Very Satisfied Dissatisfied Pepsi Very Satisfied Dissatisfied

Satisfied Neutral Satisfied Neutral

Dissatisfied Dissatisfied

Very Very

COKE

63

Table 8.14: Satisfaction Level in Margin of Coke

Satisfacti Margin on level of Coke Very satisfied 0 Satisfied 17 Neutral 49 Dissatisfie d 28 very dissatisfied 6

Table 8.15: Weighted Average Mean of Satisfaction Level Coke

Satisfaction level Very satisfied satisfied Neutral dissatisfied very dissatisfied

Margin of Coke 0 17 49 28 6
100

Rank 1 2 3 4 5

W.A 0 34 147 112 30 323

Weighted Mean 3.23

Table 8.8: Graph Satisfaction Level in Coke

64

Margin of Coke Margin of Coke

very dissatisfied dissatisfied Neutral satisfied Very satisfied 0 0 %

6 28 49 17

10

20

30

40

50

Here the retailers are more dissatisfied with the margin available of coke as they are given maximum Rs 1 to Rs 1.5 and in which they have to pay their own refrigeration electricity. The retailers always came up with the answer that that coke can give more margins to them.

PEPSI
Table 8.16: Satisfaction Level in Margin of Pepsi

Satisfacti on level Very satisfied Satisfied Neutral Dissatisfie d very dissatisfied

Margin of Pepsi 0 11 60 25 4

Table 8.17: Weighted Average Mean of Satisfaction Level Pepsi

65

Satisfaction level Very satisfied satisfied Neutral dissatisfied very dissatisfied

Margin of Pepsi 0 11 60 25 4
100

Rank 1 2 3 4 5

W.A 0 22 180 100 20 322

Weighted Mean 3.22

Figure 8.8: Graph Satisfaction Level in Pepsi

Margin of Pepsi Margin of Pepsi

very dissatisfied dissatisfied Neutral satisfied Very satisfied 0 0

4 25 60 11

10

20

30 %

40

50

60

Here also the retailers feel the same about Pepsi as they feel that they can receive more margins from the company. Here the retailers are more dissatisfied than satisfied.

66

18) According to you which factor plays a major role in achieving sales
for Coke or Pepsi? (Rank 1-6)

Coke

Pepsi

Brand Name

Price

Availability

Loyalty

Quality

Packaging

(Here to solve the above question we used SPSS instead of Excel to solve the question)

COKE
Table 8.18: Ranked Brand Name Coke

67

Brand name Cumulative Frequency Valid 1.00 2.00 3.00 4.00 Total 34 19 35 12 100 Percent 34.0 19.0 35.0 12.0 100.0 Valid Percent 34.0 19.0 35.0 12.0 100.0 Percent 34.0 53.0 88.0 100.0

Figure 8.9: Graph Ranked brand name Of Coke

The brand name of coke is given a mean of 2.25 to coke stating it to be one of the important factors for the sales of coke it has given the least mean to the brand name.

68

Table 8.19: Ranked Price of Coke

Price Cumulative Frequency Valid 2.00 3.00 4.00 5.00 6.00 Total 6 15 21 28 30 100 Percent 6.0 15.0 21.0 28.0 30.0 100.0 Valid Percent 6.0 15.0 21.0 28.0 30.0 100.0 Percent 6.0 21.0 42.0 70.0 100.0

69

Figure 8.10: Graph Price of Coke

The retailers have ranked the price of the coke brand which is the second least a mean of 4.61 stating that price is not a major factor when it comes to bottled beverages of Coke. People do not see the price of the product and buy it. They buy it usually out of thirst or taste of the product
Table 8.19: Ranked Availability Coke

70

Availability Cumulative Frequency Valid 1.00 2.00 3.00 4.00 5.00 Total 20 30 11 25 14 100 Percent 20.0 30.0 11.0 25.0 14.0 100.0 Valid Percent 20.0 30.0 11.0 25.0 14.0 100.0 Percent 20.0 50.0 61.0 86.0 100.0

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Figure 8.11: Graph Ranked Availability of Coke

The Availability of coke is a third major contributor to the sales of coke since it is evident that retailers of coke are more than pepsi. So even though a person may be loyal to pepsi but if the availability of retailers of pepsi is less then he will surely sift to coke for the time being. Thus more number of retailers means more sales of coke
Table 8.20: Ranked Loyalty Coke

72

Loyalty Cumulative Frequency Valid 1.00 2.00 3.00 4.00 6.00 Total 30 23 16 17 14 100 Percent 30.0 23.0 16.0 17.0 14.0 100.0 Valid Percent 30.0 23.0 16.0 17.0 14.0 100.0 Percent 30.0 53.0 69.0 86.0 100.0

Figure 8.12: Graph Ranked Loyalty of Coke

Loyalty is another factor contributing to the sales of coke as a lot of people are loyal to the thumbs-up brand and also the sprite and Limca brands of coke as there is a major fan following for some of the brands of coke in India it is able to hold a major part of the market share in India.
Table 8.21: Ranked Quality Coke

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Quality Cumulative Frequency Valid 1.00 2.00 3.00 4.00 5.00 6.00 Total 16 22 23 11 22 6 100 Percent 16.0 22.0 23.0 11.0 22.0 6.0 100.0 Valid Percent 16.0 22.0 23.0 11.0 22.0 6.0 100.0 Percent 16.0 38.0 61.0 72.0 94.0 100.0

Figure 8.13: Graph Ranked Quality of Coke

Here quality is another important factor in the sales of coke after the pesticide issue and the later enrolment of brand Ambassador Amir Khan for coke the people have again jumped the Coke band wagon. The increasing sales of Coca- Cola are the presence of a legible and a strong brand ambassador and the great improvement in the quality of the products of Coca-cola. It could also be that the pesticide issue was a blessing in disguise of coca-cola

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Table 8.22: Ranked Packaging Coke

Packaging Cumulative Frequency Valid 4.00 5.00 6.00 Total 14 36 50 100 Percent 14.0 36.0 50.0 100.0 Valid Percent 14.0 36.0 50.0 100.0 Percent 14.0 50.0 100.0

Figure 8.14: Graph Ranked Packaging of Coke

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Packaging is the least important when it comes to the sales of the bottled products as they do not effect sales at all. People are not induced by packaging at all they just buy the product for the taste brand name and loyalty towards the product

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Over all you can see the least meaned attribute is Brand name loyalty and then quality which is a big factor that plays a role in the sales of coke. The retailers say that the packaging or the price dose not matter to the customers but they should get the product that they liked. And also coke is available almost everywhere it has got more retail chains compared to that of Pepsi The Shopkeepers also told the story of thumbs-up which is has the highest market share in the soft drinks market and coke has got success mainly due to thumbs-up and also mentioned that cokes advertisements are much better than compared to Pepsi.

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PEPSI
Table 8.23: Ranked Brand Name Pepsi
Brand name Cumulative

Figure 8.15: Graph Ranked Brand name of Pepsi

Frequency Valid 1.00 2.00 3.00 4.00 5.00 6.00 Total 26 21 27 17 5 4 100

Percent 26.0 21.0 27.0 17.0 5.0 4.0 100.0

Valid Percent 26.0 21.0 27.0 17.0 5.0 4.0 100.0

Percent 26.0 47.0 74.0 91.0 96.0 100.0

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The brand name of Pepsi is given a mean of 2.66 stating it to be one of the important factors for the sales of the brand; it has given the least mean to the brand name. Compared to coke the brand rating for pepsi is less
Table 8.24: Ranked Price Pepsi
Price Cumulative Frequency Valid 1.00 2.00 3.00 4.00 5.00 6.00 Total 11 17 11 20 10 31 100 Percent 11.0 17.0 11.0 20.0 10.0 31.0 100.0 Valid Percent 11.0 17.0 11.0 20.0 10.0 31.0 100.0 Percent 11.0 28.0 39.0 59.0 69.0 100.0

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Figure 8.16: Graph Ranked Price Pepsi

The retailers have ranked the price of the PepsiCo brand which is the second least a mean of 4.61 stating that price is not a major factor when it comes to bottled beverages of Coke. People do not see the price of the product and buy it. They buy it usually out of thirst or taste of the product

Table 8.25: Ranked Availability Pepsi

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Availability Cumulative Frequency Valid 2.00 3.00 4.00 5.00 6.00 Total 10 26 27 31 6 100 Percent 10.0 26.0 27.0 31.0 6.0 100.0 Valid Percent 10.0 26.0 27.0 31.0 6.0 100.0 Percent 10.0 36.0 63.0 94.0 100.0

Figure 8.17: Graph Ranked Availability Pepsi

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The Availability rating of Pepsi is much less compared to coke the coke rating is 2.88 while the rating of PepsiCo is 3.97 which are much less compared Coke. Maybe the reasons for less market share is the less availability of pepsi compared to coke

Table 8.26: Ranked Loyalty Pepsi

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Loyalty Cumulative Frequency Valid 1.00 2.00 3.00 4.00 5.00 6.00 Total 33 21 17 9 15 5 100 Percent 33.0 21.0 17.0 9.0 15.0 5.0 100.0 Valid Percent 33.0 21.0 17.0 9.0 15.0 5.0 100.0 Percent 33.0 54.0 71.0 80.0 95.0 100.0

Figure 8.18: Graph Ranked Loyalty Pepsi

Loyalty is a major factor for the sales of PepsiCo as the retailers suggest that many people like pepsi and stick to it and thats why the presence of pepsi is there in the Indian market there is a huge fan following of the mountain dew brand. The retailers

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have given a mean rank of loyalty 2.67 to pepsi which is more or less as same as the loyalty rating of coke sometimes bettering the loyalty of coke

Table 8.27: Ranked Quality Pepsi

Quality Cumulative Frequency Valid 1.00 2.00 3.00 4.00 5.00 6.00 Total 21 21 19 16 11 12 100 Percent 21.0 21.0 19.0 16.0 11.0 12.0 100.0 Valid Percent 21.0 21.0 19.0 16.0 11.0 12.0 100.0 Percent 21.0 42.0 61.0 77.0 88.0 100.0

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Figure 8.19: Graph Ranked Quality Pepsi

The quality of pepsi was never in doubt but here the quality rating of pepsi is given here more ranking compared to coke. The coke quality ranking was given less due to

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the pesticide issue. Here the mean rank is 3.11 given by the retailers to the brand Pepsi

Table 8.18: Ranked Packaging Pepsi

Packaging Cumulative Frequency Valid 1.00 2.00 4.00 5.00 6.00 Total 9 10 11 28 42 100 Percent 9.0 10.0 11.0 28.0 42.0 100.0 Valid Percent 9.0 10.0 11.0 28.0 42.0 100.0 Percent 9.0 19.0 30.0 58.0 100.0

Figure 8.9: Graph Ranked Packaging Pepsi

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Packaging is the least important when it comes to the sales of the bottled products. The retailers have given a mean rank of 4.65 to the packaging of the product, as they do not affect sales at all. People are not induced by packaging at all they just buy the product for the taste brand name and loyalty towards the product

Over all you can see above that the brand name and loyalty being the lowest mean thus we can say that its due to mostly the loyalty that people have for Pepsi And the brand name are the main reasons for the sale of Pepsi brand.

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The retailers have given a 4 mean for availability stating that the availability of Pepsi is vey less compared to that of coke. This is much evident in the first question that about 72% retailers sell coke while only 25%sell the Pepsi brand. The Packaging has never mattered in the bottled sales of pepsi and coke and also the price. The Main Factors are Availability, Brand Name, Quality and the most important the retention of customers of either particular brands i.e. Loyalty

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CH: 9 SWOT ANALYSIS

9. Swot Analysis

9.1 SWOT OF COKE

STRENGTH:
1. Coca-cola potential brands position in the market.

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2. relationship. 3. 4. 5. 6. 7.

Good quality and innovation of product for long term customer Good advertising campaign, and brand ambassador. Advertisement campaign more effective and change of punch line make High investment in research and development. Coca-cola has a good market share. Segment of coke product to every age group.

an Emotional touch with customer and retail.

WEAKNESS:
1. Lack availability 1 it & 1.5 it product pack. 2. Lack supply of Kinley water in the market. 3. Retailers are unhappy with schemes at any time.

OPPORTUNITY:
1. Coke is able to grab large market share as the Indian consumer base is growing. 2. More monopoly counters of coke brand. 3. To improve market mix (product, price, promotion, place) 4. To increase the sale of Kinley.

THREATS:
1. Pepsi is the major competitors. 2. Pepsi has captured major market of 500ml, 1.5 & 2 it. 3. Retailers divert to Pepsi because they are getting good schemes and SGA signage.

9.2 SWOT OF PEPSI

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STRENGTH:
1. Pepsi has a good brand image. 2. Good quality and innovation of product for long term customer relationship. 3. High investment in research and development. 4. Segment of Pepsi product to every age group.

WEAKNESS:
1. Lack of proper distribution in many areas. 2. Lack Of retailers in the market. 3. No of distributors enough to retailers.

OPPORTUNITY:
1. Pepsi has a growing market share and can capture new consumers as the Indian middle class is growing 2. To improve market mix (product, price, promotion, place) 3. To increase the no of retailers who sell the Pepsi brand 4. To capture the growing clout of mountain dew and to hold on to its new followers

THREATS:
1. Coke is the major competitor. 2. The Brand of Thumbs-up and Sprite have a major fan following in India which belongs to coke 3. Coke has higher retailers compared to Pepsi meaning increasing availability of coke

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CH: 10 FIVE FORCE ANALYSIS

10. Five Force Analysis of Aerated Industry

10.1 Threat of Competitors

The growth of Punjab Agro is also another threat for coke as it is a strong locale player and created great brands like Thumbs-up and Limca due to which the market

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share of coke is high after buying these brands. It has a growing presence in the fresh juice market. The local Drinks like the local soda shops the nimbu pani walas and the fresh juice sellers still have a good presence in the local market and are also considered to be a better option by the people specially during summers

10.2 Threat of Substitutes

The major substitute to the aerated industry is the influx of fresh juices where people are changing from the fizzed juice to the fresh juices. The other is the growth of the concentrated juice market like Rasna and Tang have a considerable market share in India. People of India like to make easy things and so its better to make 7 to 12 glasses of Rasna which is a cheaper option than compared to spending more money in buying Fizzed Juices

10.3 Threat of new Entrants

The major threat in the rise of the Indian aerated industry is the disease called Diabetes where there are increasing number of People who are acquiring this diseases thus people are slowly decreasing the consumption of fizzed juices There are juices which being fresh and having natural sugar are slowly capturing the market of fizzed juices The number of health conscious people are increasing day by day who are decreasing the consumption of fizzed juices and turning towards fresh juices which is obviously a healthy option

10.4 Bargaining Power of Buyers

The buyers over here are retailers and the organized juice market has only few companies to choose from and 93% of the market shares are captured by the Giants

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Coke and Pepsis so the retailers are stuck with the giants and have less bargaining power. The people also prefer juices from the giants as of now so the retailers would obviously sell the product with the popular demand so they have no choice but to sell the product of the giants. So the bargaining power of buyers is extremely low in this case.

10.5 Bargaining power of Suppliers

Here the suppliers of the concentrate are the manufactures them selves the main supply channel is the government licence for using underground water to mix with the juice concentrate The next supply is the sugar used in the concentrate by the manufactures from the farmers The government has a good bargaining power over the companies thus if the licence is revoked then the company has no supply of water. The same happened with coke; coke was forced to give out its secret and government cut its water supply so coke left India in 1977 and returned during the period of liberalization in 1993

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CH: 11 KEY FINDINGS

11. Key Findings

The Key Findings in the project are given below

Few Pepsi retailers in Ahmedabad

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The product availability is a major concern for Pepsi in Ahmedabad as there are few retailers of Pepsi compared to coke

There are extremely low retailers selling both the brands as proper service is not given to those who are not exclusive outlets of the company. Recently the fast food outlet Red Rose stopped selling coke due to the companies and the food chain disagreements

The retailers selling both brands are big restaurants or rich dairies who can afford to bear the electricity and the cost of their own fridge and sell both the products at the same time

The margins given to the retailers are extremely less and the electricity that the fridges consume are also paid by the pockets of the retailers

Major change in Cokes Distribution Process by Having their own exclusive Carrying and Forwarding Agents and slowly removing the middle man and directly servicing the retailers

Special focus on thumbs-up and sprite by the company Pushing of the coke brand on to the retailers to sell along with Thumbs-up or sprite No credit period offered by the company and on the spot collection of check or cash by the salesman

The Matching policies of both the companies in terms of expiry refrigeration, service and damage of bottles.

Shift of the cola brands to fresh juices due to the growing market and users of fresh juice

Some times coke promises freebees to the retailer in turn for the sale of coke bottles but it is not passed on to the retailers after promising them the same

Coke has about 59 processing units around the country and are planning to increase 12 more processing units while pepsi has only 42 processing units in the country

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Intensive distribution in the rural chain as coke defeats pepsi like anything the use of local language by coke advertisements and the cost of a small bottle of coke comes down to Rs5 in the villages where the people of the village can afford it but pepsi is known less in the villages and dose not have a strong intensive rural distribution as compared to coke

Packaging and price do not matter to consumers as long as the quality and availability is there. And the brand name is the first and the foremost that is important in results of sales according to the retailers

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CH: 12 CONCLUSIONS AND RECOMMENDATIONS

12. Conclusion and Recommendation

12.1 Conclusion
Here we can conclude that Coke has a stronger distribution channel than Pepsi. Though coke is not a good satisfier compared to Pepsi as coke as some incidents of pushing its products which retailers do not like to sell. And some times coke also dose not meet its promises promised to the retailer.

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Reasons are Coke is available in every street and restaurant Thumbs-up has 16.6%market share which is the highest in India Collectively Sprite (12.2%) thumbs-up (16.6%) Limca (10.9%) Fanta (10%) make up approximately 50% of market share while Pepsi is the only brand with a high market share of 13% followed by Mirinda orange which is at 8%. So the retailers has to sell what the consumers demand and they mostly demand coke products

12.2 Recommendations to Coke

Though coke has a strong distribution channel there are still some flaws in its channel and we would like to recommend them some changes which could benefit them in the future Remove the middle man completely and deal directly with the retailer Direct dealings will bring down cost and thus the retailer can be given more margins and the drink could also become cheaper for the consumer Not to push products which he doe not want to sell as it will decrease his satisfaction and may shift to rival brands To fulfil the promises given to the retailer as little gifts do matter

12.3 Recommendations to Pepsi

Pepsi has a relatively weaker distribution system than compared to Coke. But the retailers are absolutely satisfied with Pepsi in the sense that they not only fulfil all their promises but also no pushing of products or bullying is done to the retailers by them. Increase the number of retailers selling Pepsi hence the availability of the product increases Slowly but steadily remove the middle man and go for direct dealings with the retailer

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Better advertisements are required as adds play a major role in brand recall and brand imagery

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BIBLIOGRAPHIES

Bibliography
1. Naresh Malhotra. (2009):Marketing Research an Applied Orientation, 5th Edition, prentice hall of India.

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2. Phillip Kotler (2010): Marketing Management, 13th edition Pearson Education

3.http://economictimes.indiatimes.com/news/news-byindustry/consproducts/food/Fizzier-Pepsi-looks-to-steal-Thums-Upsthunder/articleshow/4302283.cms retrieved on 31st Jan 2010

4. http://www.pepsiindia.co.in/brands.aspx retrieved on 31st Jan 2010 5. http://www.pepsiindia.co.in/ retrieved on 31st Jan 2010 6. http://www.coca-colaindia.com/ retrieved on 31st Jan 2010

7. http://www.coca-colaindia.com/brands/brands_home.aspx retrieved on 31st Jan

2010

8. http://www.scribd.com/doc/19814374/Coke-vs-Pepsi retrieved on 23rd Feb. 2010

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ANNEXTURE

Questionnaire

Dear Sir/Madam,

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We the students of GLS NRIBM MBA Ahmedabad are conducting a project on Channel Satisfaction Comparison of Pepsi & Coke I kindly request you to fill this questionnaire below and assure you that this data will remain confidential.

1) Which soft drinks company products do you sell?

Coke

Pepsi

Both

2) Does the soft drink company provide you with refrigeration facilities?

Coke Pepsi

Yes Yes

No No

3) Dose the company provide you with mechanics for the repair and maintenance of fridges?

Coke Pepsi

Yes Yes

No No

4) What are the conditions of bottles provided by the company? Coke Pepsi Excellent Excellent Good Good Neutral Neutral Bad Bad Worse Worse

5) If the bottles are broken in transit or in the shop due to natural causes or calamities then does the company bear the loss for you? Coke Yes No

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Pepsi

Yes

No

6) If the products have crossed their expiry dates then dose the company replace the products for you? Coke Pepsi Yes Yes No No

7) If yes then

Coke Pepsi

Replace at your own cost Replace at your own cost

Buy Back Buy Back

Replace products free of charge Replace products free of charge

8) How many distributors of the company are there in your area? Coke Pepsi 0-2 0-2 2-4 2-4 4-6 4-6 more than 6 more than 6

9) When do you replenish your stock? Weekly Fortnightly Monthly Quarterly

10) What is the quantity you usually order?

10) Are you satisfied with your replenishment you get?

Coke Pepsi

Very Satisfied Dissatisfied Very Satisfied Dissatisfied

Satisfied Satisfied

Neutral Neutral

Dissatisfied Dissatisfied

Very Very

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11) What is the lead time?

12) Are you satisfied with the lead time? Coke Pepsi Very Satisfied Dissatisfied Very Satisfied Dissatisfied Satisfied Satisfied Neutral Neutral Dissatisfied Dissatisfied Very Very

13) Dose the company give you products you require or they follow their own rules and regulations?

Coke Pepsi

Yes Yes

No No

14) Do you place order with the dealer or directly with the company

Coke Pepsi

Dealer Dealer

Company Company

15) Does the products you order comes from the dealers godown or directly come from the company itself?

Coke Pepsi

Dealer Dealer

Company Company

16) How much time dose it take to process an order?

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Coke Pepsi

0-2 0-2

2-4 2-4

4-6 4-6

more than 6 more than 6

(days) (days)

17) Any schemes or discounts in bulk buying?

Coke Pepsi

Yes Yes

No No

18) What are the payment conditions of the company?

Coke pay in advance Pepsi pay in advance

pay on arrival of the product pay on arrival of the product

pay to the salesman later pay to the salesman later

19) Are you satisfied with the payment conditions?

Coke Pepsi

Very Satisfied Dissatisfied Very Satisfied Dissatisfied

Satisfied Satisfied

Neutral Neutral

Dissatisfied Dissatisfied

Very Very

20) Are you satisfied with the margins given to you by the company?

Coke Pepsi

Very Satisfied Dissatisfied Very Satisfied Dissatisfied

Satisfied Satisfied

Neutral Neutral

Dissatisfied Dissatisfied

Very Very

21) Rank the company from 1 to 5 in the terms of the best margin giver?

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(1 is the lowest and 5 the highest)

1 Coke Pepsi

22) Which company are you more satisfied with?

Coke

Pepsi

None

23) Which products dose the consumer prefers buying?

Coke

Pepsi

None

24) According to you which factor plays a major role in achieving sales for Coke or Pepsi? (Rank 1-7)

Coke

Pepsi

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Brand Name

Price

Availability

Loyalty

Quality

Packaging

PERSONAL INFORMATION Name: Shop Name: Type of Retail: Area:

Thank You for Your Time and Patience

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