PREFACE

“Marketing is too important to be left to the marketing department.”

David Packard of Hewlett
Packed.
The Indian market is getting to be consumer oriented. This is the reason
behind the exceptional boom in advertising. Below the line marketing
activities, fast distribution system and more sophisticated consumer
research.
The problem that all marketers are facing is getting the maximum
done in the minimum possible time. And with brand loyalty becoming a
thing of the past, given the choice available to the consumer pull. The
consumer could be a purchaser of end products, or a financial investor, or
even an industrial purchaser. Everywhere, there is a new thrust on
marketing and advertising.
The hyper activity in the market place is seeing a boom in support services,
with a number of independent agencies mushrooming to provide them.
The entries of multinational products in to the country are seeing
more emphasis on world- class quality.
The scene has moved beyond the threshold of global presence, inward and
out ward. However, there are certain issues still dogging an unchecked
move forward something bound to happen when the economy is just
opening up. These need to be addressed. Nonetheless, India has taken the

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irreversible step forward in becoming a part of the global family. And in the
process of growth, there are already and will be in future, quantum jumps
in progress.

INTRODUCTION

In the modern urban culture consumption of soft drinks particularly among

younger generation has become very popular. Soft drinks in various flavors

and tastes are widely patronized by urban population at various occasions

like dinner parties, marriages, social get together; birthday calibration etc.

children of all ages and groups are especially attracted by the mere mention

of the word soft drinks.

With the growing popularity of soft drinks, the technology of its production,

preservation, transportation and or marketing in the recent years has

witnessed phenomenal changes.

The so-called competition for this product in the market is from different

other brands. Mass media, particularly the emergence of television, has

contribute to a large extent of the ever growing demand for soft drinks the

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attractive jingles and sport make the large audience remember this product

at all times.

It is expected that with the sort of mass advertising, reaching almost the

entire country and offering various varieties annual demand for the product

is expected to rise sharply in the times to come.

In any marketing situation, the behavioral / environmental variables relating

to consumers, competition and environment are constantly influenced. The

competitors in a given industry may be making many tactical exercises in

market all the time. The may introduce or initiate an aggressive promotion

campaign or announce a price reduction. The marketing man of the firm has

to meet all these maneuver and care of competitive position of his firm and

his brand in the market. The only route open to him for achieving this is the

manipulation of his marketing tactics.

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 In today’s highly competitive market place, three players have dominated

the industry; The New York based Pepsi Company Inc. The Atlanta based

coca- cola and U.K. based Cadbury Schweppes.

SOFT DRINK INDUSTRY: AN OVERVIEW

It all began in 1886, when a tree legged brass kettle in Hohn Styth

pemberton’s backyard in Atlanta was brewing the first P of marketing leged.

Unaware the pharmacist has given birth to a caromel colored syrup, which is

now the chief ingredient of the world’s favorite drink. The syrup combined

with carbonated the soft drink market. It is estimated that this drink is served

more than one thousand million times in a day.

Pemberton & Robinson laid the first foundation of this beverage when an

average nine drinks per day to begin with, upping volumes as sales grew.

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In 1894, this beverage got into bottle, courtesy a candy merchant from

Mississippi. By the 1950’s Colas was a daily consumption item, stored in

house hold freezes. Soon were born other non- cola variants of this product

like orange & Lemon.

Now, the soft drink industry has been dominated by three major player – (1)

The New York based Pepsi co. Inc.(2) The Atlanta based coca cola co. (3)

The united Kingdom based Cadbury Schweppes.

Though out the glove these major players have been battling it. Out for a

bigger chunk of the ever-growing cold drink market. Now this battle has

begun in India too. India is now the part of cold drink war. Gone are days of

Ramesh Chauhan,

India’s one time cola king and his bouts of pistol shooting. Expect now to

hear the boon of cannons when the Coca Cola & Pepsi co. battle it out for,

as the Jordon goes a bigger share of throat. By buying over local

competition, the two American Cola giants have cleared up the arena and

are packing all their power behind building the Indian franchisee of their

globe girdling brands. The huge amount invested in fracture has never been

seen before. Both players seen an enormous potential in his country where

swigging a carbonated beverage is still considered a treat, virtually a luxury.

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In colas, Pepsi is already market leader and in certain cities like Delhi, Pepsi

outlets are on one side & all the other colas put together on the other. While

coke executive scruff at Pepsi’s claims as well as targets, industry observers

are of the view that Pepsi has definitely stolen a march over its competitor

coke.

Apart from numbers, Pepsi has made qualitative gains. The foremost is its

image. This image turnaround is no small achievements, considering that

since it was established in 1989, taking the hardship route prior to

liberalization and weighed down by export commitments.

Now, at present as there are three major players coke, Pepsi and Cadbury

and there is stiff competition between first two, both Pepsi and coke have

started, sponsoring local events and staging frequent consumer promotion

campaigns. As the mega event of this century has started, and the

marketers are using this event – world cup football, cricket events and many

more other events.

The success of soft drink industry depends upon 4 major factors viz.

 Availability

 Visibility

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  Cooling

 Range

AVAILABILITY

Availability means the presence of a particular brand at any outlet. If a

product is now available at any outlet and the competitor brand is

available, the consumer will go for that.

VISIBILITY

Visibility is the presence felt, if any outlet has a particular brand of soft

drink say- Pepsi cola and this brand is not displayed in the outlet, then its

availability is of no use. The soft drink must be shown off properly and

attractively so as to catch the attention of the consumer immediately.

COOLING

As the soft drinks are consumed chilled so cooling them plays a vital role in

boosting up the sales. The brand, which is available chilled, gets more

sales then the one which is not, even if it is more preferred one.

RANGE

This is the last but not the least factor, which affects the sale of the

products of a particular company.

Range availability means the availability of all SKU (Stock Keeping Units).

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PROFILE OF PEPSICO

MISSION:

“PEPSI is continuously striving for synergy between technology, system and

human resource to provide product and services thet meets the quality,

performance and price aspirants of customer. While doing so, it maintains

the highest standards of ethics and societal responsibilities, innovates

product and, processes and develop team that keep the momentum going to

take the company to excellence in the new millennium.”

About PEPSI

PepsiCo is the 18th largest American Company with its worldwide operations

in 190 countries. The company is possibly the largest employer.

PepsiCo has set up a fully integrated operation in India- manufacturing,

research and development, marketing, distribution, covering fruit/vegetable

processing, exports, snack foods, beverages and restaurants, including

franchising of beverage territories for beverage business and restaurants it

has set up a holding company to further accelerate growth in the future

through new initiatives and

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joint ventures. PepsiCo started its operations in India in 1989 with the

formation of Pepsi Foods Limited.

Starting from a Zero base, Pepsi, today, enjoys a leadership in Cola

category. The company’s beverage brands are Pepsi, 7Up, Mirinda Lemon,

Mirinda Orange, Slice, Tropicana Product, Aquafina, Diet pepsi, pepsi can.

Pepsi services all retailers at least thrice a week and in summer, very often,

twice a day.

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 1. COMPANY PROFILE-PepsiCo Inc.

PepsiCo is one of the largest companies in the U.S. It figures amongst the

largest 15 companies worldwide according to the number of employees

hired.

PepsiCo is a world leader in the food chain business. It consists of

many companies amongst which the famous one is Pepsi-Cola, Frito-Lay

and Pepsi Food International. The group is presently into two of the most

profitable and profitable and growing industries namely, beverages and

snack foods. It has scores of big brands available in nearly 150 countries

across the globe. The group has established for itself once of the strongest

brands in various segments of its operations.

The beverages segment primarily markets its Pepsi, Diet Pepsi, Mountain

Dew and other brands worldwide and 7-UP outside the U.S. markets. These

are positioned in close competition with Coca-Cola Inc. of USA. A point

which is worth a mention is that Coca-Cola gets 80% of its profits for

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International operations while the same figure for PepsiCo stands at 6%.

The segment is also in the bottling plants and distribution facilities and also

distributes the ready to drink tea products of Lipton in North America. In a

joint venture with orient spray juice products PepsiCo also manufactures and

distributes fruit juices.

The snack food division manufactures and distributes and markets chips and

other snacks worldwide. The international operations of this segment

extends to the markets of Mexico, the UK and Canada. Frito-Lay represents

this segment of PepsiCo.

The restaurant segment earlier primarily consists of the operations of

the worldwide Pizza Hut, Taco Bell and KFC chains. PFS. Pepsi Co’s

restaurant distribution operation, supplies company owned and franchise

restaurants in the U.S. The company ventured into restaurant business with

Taco Bell, KFC, Pizza Hut ended last year when they were spinned off from

the company. A packaged goods company comprised of Pepsi-Cola

Company and Frito-Lay will continue to bear the PepsiCo name. The move

should enhance both corporations ability to prosper with their own fully

dedicated structure and management team.

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 THE GENESIS OF PEPSI

The summer of 1898, as usual, was hot in New Bern, North Carolina.

So a young pharmacist named Caleb Bradham began experimenting with

combinations of spices, juices and syrups, trying to create a refreshing new

drink to serve to his customers - he succeeded beyond all expectations

because he invented the beverage now known around the world as Pepsi-

Cola.

Caleb Bradham knew that to keep people returning to his pharmacy, he

would have to turn it into a gathering place. He did so by concocting his own

special beverage-a soft drink.

His creation, a unique mixture of kola nut extract, vanilla and rare oils,
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became so popular his customers named it "Brad's Drink." Caleb decided to

rename it "Pepsi-Cola," and advertised his new soft drink. People

responded, and sales of Pepsi-Cola started to grow, convincing him that he

should form a company to market the new beverage.

His creation, a unique mixture of kola nut extract, vanilla and rare oils,

became so popular his customers named it "Brad's Drink." Caleb decided to

rename it "Pepsi-Cola," and advertised his new soft drink. People

responded, and sales of Pepsi-Cola started to grow, convincing him that he

should form a company to market the new beverage.

In 1902, he launched the Pepsi-Cola Company in the back room of his

pharmacy, and applied to the U.S. Patent Office for a trademark. At first, he

mixed the syrup himself and sold it exclusively through soda fountains. But

soon Caleb recognised that a greater Opportunity existed - to bottle Pepsi so

that people could drink it anywhere.

By the end of 1910, there were Pepsi-Cola franchises in 24 states. A 1913

editorial in the Greensboro Patriot praised him for his "keen and energetic

business sense'. Pepsi-Cola enjoyed 17 unbroken years of success. Caleb

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promoted Pepsi sales with the slogan, "Drink Pepsi-Cola. It will satisfy

you."

In 1934, the company moved to a new headquarters location in Long Island

City, New York, and four years later, in 1938, Walter S. Mack was selected to

be the new president of Pepsi-Cola. Mack believed that advertising could be

a basis of soft drink marketing and soon introduced a comic strip, "Pepsi

&Pete",

To promote Pepsi's pricing advantage with the line

"Twice as much for a nickel."

The company also began experimenting with new bottle sizes, and for the

first time began to package Pepsi-Cola in cans.

For Pepsi-Cola, the '50s were embodied by the company's new president,

Alfred Steele, a man of immense drive and vitality, who presided over an

extended period of growth and expansion.

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By the mid-1950s, Alfred Steele had become chairman of Pepsi's board of

directors, and Herb Barnett had replaced him as the company's president.

Innovation continued, and a distinctive new "swirl" bottle was introduced in

1958. That same year, a new advertising campaign, "Be Sociable, Have a

Pepsi," was also launched. Internationally, Pepsi continued to expand still

now.

Pepsi-Cola sensed that attitude and captured their spirit with a name that

has stood the test of time. They were the Pepsi Generation.

During its first 65 years, Pepsi-Cola Company sold only one product-Pepsi.

But, with the baby boom, not only did the nation's population change, so did

the way it thought of soft drinks. For many people, soft drinks had to be not

just refreshing, but a complement to diet habits as well. So, in 1963, the

company developed a new low-calorie drink with a taste worthy of carrying

the Pepsi-Cola name: Diet Pepsi.

In 1964, Mountain Dew, a regional soft drink favourite, became an important

new addition to the growing family of Pepsi-Cola brands, and its advertising

theme, "Ya-hoo, Mountain Dew," became the brand's instantly recognisable

signature.

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Pepsi in cans had by now proved so popular that full-scale commercial

distribution began in 1965. That same year Pepsi-Cola Company merged

with a successful Dallas, Texas, marketer of salty snacks, Frito-Lay, Inc., to

form PepsiCo - one of the great consumer products companies on the U.S.

business scene.

"Pepsi: The Choice of a New Generation", a campaign that reaffirmed

Pepsi's position on the leading edge of contemporary culture.

Pepsi made its first trip on the space shuttle, carried in a specially

designed "space can," and crossed yet another new frontier by beginning

distribution in China. By the middle of the decade, more than 600 Pepsi-Cola

plants were operating in 148 countries and territories throughout the world.

As Pepsi's business throughout the world continued to increase in

importance, Chris Sinclair was a president of Pepsi-Cola International in

1989.

As the 1990’s opened, so did a new era in Pepsi's international operations.

The company signed the single largest trade agreement in history with the

Soviet Union. Seeking long-term growth, Pepsi invested in such high-

potential markets as China, Eastern Europe, Mexico and Argentina.

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More than that, PepsiCo has become a truly international company. Its soft

drinks and other beverages, snack foods of every variety and the PepsiCo

restaurants can today be found in every corner of the globe. PepsiCo brands

and PepsiCo operations today employ almost half a million people in 195

countries around the world.

These developments and many more will write Pepsi story for the next

millennium - a story that was undoubtedly find a company with a vast

resources, thriving businesses, extraordinarily financial strength and

thousands of bright, dedicated people.

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 PEPSI’S MARKETING STRATEGIES

Pepsi’s approach is radically different from that of Coke, Pepsi has

gone in for concentration segmentation. Pepsi has targeted the youth
segment instead of trying to be something to all segments.

Pepsi has since beginning strove to achieve its international position

as `a drink for the new generation’ in India. Helped by HTA’s forceful visuals
and creative, Pepsi has been successful in positioning itself for the younger
generation.

SELLING PROCESS

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 Pepsi has a very well managed selling system. It takes as lot of care
to ensure that the products (Pepsi bottles) are available to the consumers.
Pepsi soft drinks are produced in our plant in different SKUs (Stock
keeping units) and distributed to our distributer and they further supply to the
retailer. Shahibabad (GZB) has been divided around 14 routes which are
called direct routes. For every route there is a Routs Agent. Route Agent
moves with the company owned truck and ensure that maximum shops are
covered each day, so that regular supply of Pepsi soft drinks is made.

Routs agents take the order from the shopkeepers and then with the help of
loaders they give the required number of crates to the retailer or shopkeeper
& then move to next.
Our plants also have some agency in each rout. They supply in the
areas where Pepsi’s trucks are not able to reach. These areas are called
indirect-routes.

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MICHAEL PORTER MODEL FOR PEPSI

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 POTENTIAL ENTRANTS
BUYERS

INDUSTRYCOMPETITORS

SUPPLIERS SUBSTITUTES

Sources: Phillip kotler’s Marketing Management

ENTRANTS

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Two soft drink giants i.e. Pepsi, Coke, are already here, no other company

plans to enter in this capital-intensive industry at the moment. The

investment in this industry is more than Rs.100 per crate. This leaves no

scope for small players who cannot match the might of the two multinational

giants. Thus at the moment there are no potential entrants.

SUPPLIERS:

The bottling is done either by franchises or by company owned bottling

plants. The empty glass bottles and shells are sourced from local

manufacturers. The ingredients for the concentrate are sourced and

manufactured locally. There is abundant supply of water and sugar. Thus on

the suppliers side Pepsi does not have a problem. Presently the cans are

imported and filled locally near Pune in Maharashtra. Seeing the potential,

various local manufacturers are setting up plants for manufacturing cans in

India. Soon this problem will also be resolved.

BUYERS

The following are the various market segments

1. On-premise market.

2. Home market.

3. At work market.

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4. Youth market.

5. Special events market.

6. High visibility market.

SUBSTITUTES

Any drink, which quenches thirst, is a substitute. Thus this industry is highly

competitive as even water is substitute and almost a dozen products are

launched every year. Recently Dabar India Ltd. has launched “Real” - fruit

juices and the makers of “Frooti” have launched “Jolly Jelly”. But nowadays,

people prefer carbonated drinks because of the taste, fizz and the fun

element attached with it.

COMPETITION: -

The other two major players in this industry are Coca Cola and Cadbury

Schweppes. The real competition is between Pepsi and Coke. Presence of

competition will ensure expansion of the market by collective efforts, which is

growing at a rate of 25% annually. There is tremendous potential considering

the per capita consumption of India, which is a measly 0.6 liters as

compared to US where it is 83.5 liters. Presently Pepsi has stolen a march

over its rival because of its marketing efforts.

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 COCA-COLA

MARKETING STATEGIES OF COKE

a) PRODUCT

Coke was launched in India in Agra, October 24, in '93', soon

after its traditional all Indian launch of its Cola. At the sparking new bottling
plants at Hathra near Agra.Coke was back with a bang after its exit in 1977.
Coke was planning to launch in next summer the orange drink, Fanta-with
the clear lemon drink, sprite, following later in the year.

Coke's product line includes, Coca-Cola, Thums Up, Fanta, Maaza, Sprite,
Club Soda, 7-up,Limca,Fanta apple, Diet Coke.

PACKAGING

Coca-Cola India Limited (CCIL) has bottled its Cola drink in different
sizes and different packaging i.e., 200 ml bottle, 300 ml. Bottle, 330 ml.
Cans, 500 ml. and bottles of 1 and 2 litre.

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PRODUCT POSITIONING

One important thing must be noticed that Thums Up is a strong brand

in western and southern India, while Coca Cola is strong in Northern and
Eastern India. With volumes of Thums Up being low in the capital, there are
likely chances of Coca Cola slashing the prices of Thums Up to Rs. 5 and
continue to sell Coca Cola at the same rate. Analysts feel that this strategy
may help Coke since it has 2 Cola brands in comparison to Pepsi which has
just one.

Thums Up accounts for 40% of Coca Cola company's turn over,

followed by Coca Cola which has a 23% share and Limca which accounts
for 17% of the turn over of the company. We will sell whatever consumers
wants us to". Coca Cola India has positioned Thums up as a beverage
associated with adventure because of its strong taste and also making it
compete with Pepsi as even Pepsi is associated with adventure youth.

b) PRICE

The price being fixed by industry, leaving very little role for the players
to play in the setting of the price, in turn making it difficult for competitors to
compete on the basis of price.

The fixed cost structure in Carbonated Soft Drinks Industry, and the intense
competition make it very difficult to change or alter the prices. The various
costs incurred by the individual companies are almost unavoidable. These
being the costs of concentrates, standard bottling operations, distributor and

25
bottlers commissions, distribution expenses and the promotional and
advertising expenditure (As far as Coke is concerned, it had to incur a little
more than Pepsi as Pepsi paved its way to India in 1989 while Coke made a
comeback in 1993.)

Currently a 300 ml. Coke bottle is available for Rs10 the 330 can was
initially available for Rs. 15 and now Rs.20. The prices of 500 ml, 1 litre. And
2ltr being Rs20 Rs.35 and Rs.50 respectively (according to the current
survey).

However, the trends may have been in the early '90's, now the prices
of Pepsi and Coke are the same making it difficult in future and present to
compete on the basis of price.

c) PLACE

Coke may have gained an early advantage over Pepsi since it took
over Parle in 1994. Hence, it had ready access to over 2,00,000 retailer
outlets and 60 bottlers. Coke was had a better distribution network, owing to
the wide network of Parle drinks all over India. Coke has further expanded
its distribution network.

Coke and its product were available in over 3,00,000 outlets (in
contrast with Pepsi's 2,75,000). Coke has a greater advantage in terms of
geographical coverage.

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 Coke and Pepsi have devised strategies to get rid of middlemen in
the distribution network. However, 50% of the industry unfortunately
depends on these middlemen. As of now, around 100 agents are present in
Delhi. Bottlers of the 2 multinationals have strongly felt the need to remove
these middlemen from the distribution system, but very little success has
been achieved in doing so.

d) PROMOTION

It must be remembered that soft drinks purchases are an "impulse

buy low involvement products" which makes promotion and advertising an
important marketing tool. The 2 arch rivals have spent a lot on advertising
and on promotional activities.

According to Paul Stobart, Advertising encourages customers to

recognize the quality the company offers. Price promotions often produce
short-term sales increases.

Coca Cola has entered new markets and also developing market economics
(like India) with much-needed jobs.

STRATEGIES ADOPTED

BY COKE AND PEPSI

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The Pepsi Process: Despite being a global brand, Pepsi has built its

success on meeting the Indian consumer’s needs, particularly in terms of

making the brand synchronize with localized events and traditions. Instead

of harping on its global lineage, ergo, it tries to plug into ethnic festivals, use

the vernacular indifferent part of the country, and blend into the local fabric.

Pepsi is using both national campaigns-such as the Drink Pepsi, Get Stuff

scheme, which offers large discounts on other products to Pepsi-buyers as

well as local .

The Coke Copy: Instead of creating a bond with the customers through

small but high-impact events, Coca-Cola chose to associate itself with

national and international mega events like the World Cup Cricket, 1996,

and world cup football 1998. But now coke is also entering into local actions.

Coke is also trying to make their brand synchronize with localized events

traditions and festivals. Coca-Cola new tag line in this advertisement is

“Real shopping, Real refresher”. In this way Coke is copy Pepsi.

EMPOWERMENT

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The Pepsi Process: Once of the strongest weapons in Pepsi’s armory is the

flexibility it has empowered its people with. Every manager and salesperson

has the authority to take whatever steps he, or she, feels will make

consumers aware of the brand and increase its consumption.

The Coke Copy: Flexibility is the weapon that Coca-Cola, fettered as it is by

the need for approvals from Atlanta for almost everything. In the past, this

has shown up in its stubborn insistence on junking the franchisee network it

had acquired from Parle; in its dependence on its own feedback mechanism

over that of its bottlers;’ and on its headquarters-led approach.

PRICE

The Pepsi process: Pepsi has consistently wielded its pricing strategy as in

invitation to sample, aiming to turn trial into addiction.

It launched the 500 ml bottle in 1994 at Rs. 18 versus Thums Up’s Rs. 9, in

April, 1996, its 1.5 litre bottle followed Coke into the marketplace at Rs. 30 –

Rs 5 less than Coke’s .But it couldn’t continue the lower price positioning for

long.

The Coke Copy: Initially, coke carbon-copied the strategy by introducing its

330ml cans in January 1996, at an invitation price of Rs. 15 before raising it

to Rs.18. By this time, it had realized that the Coca-Cola brand did not hold

enough attraction for customers to fork out a premium.

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 The Cola Wars

OVER A CENTURY OF COLA SLOGANS, COMMERCIALS, BLUNDERS,

AND COUPS

There's little doubt that the most spirited and intense competition in the

beverage world is between Coca-Cola and Pepsi. These two American

companies long ago took their battle worldwide, and although there are

other colas in the market, these giants occupy this high-stakes arena by

themselves. The impact of Coke and Pepsi on popular culture is

indisputable, and I have observed in my time managing this web site that

America has not become jaded about the cola wars. The memorabilia, the

jingles, the trivia - all still popular. So I am offering this page in an attempt to

assuage a wee bit of the Coke and Pepsi thirst that is thriving on our planet.

IT ALL STARTED . . . .

Coca-Cola was invented and first marketed in 1886, followed by Pepsi in

1898. Coca-Cola was named after the coca leaves and kola nuts John
30
Pemberton used to make it, and Pepsi after the beneficial affects its creator,

Caleb Bradham,

claimed it had on dyspepsia. For many years, Coca-Cola had the cola

market cornered. Pepsi was a distant, no threatening contender. But as the

market got more and more lucrative, professional advertising became more

and more important. These soda companies have been leading the way in

advertising ever since.

ADVERTISING HISTORY & COMMERCIALS

Pepsi has definitely leaned towards the appeal of celebrities, popular music,

and young people in television commercials, while Coke relies more heavily

on images of happiness and togetherness, tradition, and nationalism,

perpetually trying to cash in on its original lead. In a simplified sense, you

could sum up the strategies as Coke: Old, Pepsi: New. In fact, as we will

see, when Coca-Cola tried something new, it was disaster.

The first magazine ad for Coca-Cola appeared in Munsey's in 1902.

Advertisements began to appear on billboards, newspapers, and streetcars.

Soon there were serving trays with images of people enjoying Coca-Cola,

and glasses with the cola's name on them. At this time, Coca-Cola and

Pepsi were served in drugstore soda fountains.

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 In 1909, Pepsi used its first celebrity endorser, automobile race driver

Barney Oldfield, in newspaper ads. In 1921, Pepsi went bankrupt, but

continued to appear on the scene, although not nearly so successfully as

Coca-Cola. In 1931, Pepsi went bankrupt again, but the new owner, Roy

Megargel, would hit upon an idea that would finally give Coca-Cola some

competition. In 1934, he marketed Pepsi in a 12-ounce bottle for a nickle. At

the time, Coca-Cola was sold in a 6-ounce bottle for ten cents. Voila! Profits

for Pepsi.

Pepsi racked up another first by airing the first radio jingle in 1939. It was so

popular that it was played in jukeboxes and became a hit recordCoca-Cola

hit the airwaves in 1941.

In 1946, inflation forced Pepsi to increase prices. And in 1950, Pepsi offered

a larger 26-ounce bottle to court the young American housewife.

In the 1960's, the cola ad wars moved to television. Coca-Cola employed a

host of celebrity singers to promote the product, including Connie Francis ,

Tom Jones, The New Beats, Nancy Sinatra, and The Supremes. As we

moved through the years, both colas incorporated some of their best

slogans ("Pepsi Generation" and "the Real Thing") into subsequent

commercials.

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In the 1970s, market research showed that consumers preferred the taste of

Pepsi over Coke. The Pepsi Challenge is still being conducted today. But

Coke came up with what is arguably the best of all cola commercials, the

1971 I'd Like to Buy the World a Coke ad. This landmark was recalled in

Christmas versions in 1983 and 1984, and a 1990 Super Bowl ad, which

was enough to make some Baby Boomers weep with nostalgia.

In the 1980's, Pepsi lined up the celebrities, starting with Late Michael

Jackson, then Madonna, Michael J. Fox, Billy Crystal, Lionel Ritchie, Gloria

Estefan, Joe Montana, and others. Coke signed on Michael Jordan, New

Kids on the Block, Aretha Franklin, Elton John, and Paula Abdul.

In 1985, responding to the pressure of the Pepsi Challenge taste tests,

which Pepsi always won, Coca-Cola decided to change its formula. Bill

Cosby was the pitchman. This move set off a shock wave across America.

Consumers angrily demanded that the old formula be returned, and Coca-

Cola responded three months later with Classic Coke. Eventually, New Coke

quietly disappeared.

Pepsi, meanwhile, had its own flop, Crystal Pepsi, which was

supposed to catch the strange wave of the times when everything colorless

was clean and desirable (Zima, bottled water). And then there was Pepsi

33
Lite with the lemony flavor and one calorie, introduced in 1975. Remember

that one? Apparently they didn't expect us to because later they gave us

Pepsi One, using the same concept, but a completely different taste. And,

extending the idea even further, we are now getting Pepsi Twist, a new

product with a twist of lemon flavor.

In 1991, Ray Charles sang, "You got the right one baby, uh-huh!"

Also in the 1990s, Cindy Crawford and the Spice Girls pitched Pepsi. And

then Pepsi aired commercials featuring the aggravating little girl (Hallie

Eisenberg) with her troubling male voice.

In the new century, both colas continue to battle it out on the television

screen. And celebrities continue to be important promoters. Recently, Pepsi

has had commercials by Bob Dole and Faith Hill, among others.

34
 SLOGANS

It's clear in looking at the slogans over the years that Coke and Pepsi have

very different targeting strategies. Coke is touting itself as the original, the

authentic, and appealing to a sense of tradition, positioning itself as an

integral part of daily life. Pepsi, on the other hand, is promoting itself as

something new, young, and hip, which seems a little odd after over 100

years. But Coke was first, after all. Pepsi has always targeted the youth

market more aggressively than Coke.

RESEARCH METHODOLOGY OF COMPARISION

Research in common language refers to a search for knowledge. One can

also

define research as a scientific and systematic search for pertinent

information

35
on specific topic.

In this era of cutthroat competition it is of vital importance for any

company have a strong foothold in the product market and having a strong

distribution network, effective sales promotion and advertising strategies.

These pricing policies should also be such which will help them in achieving

their targets. Ever company strives to earn profit through maximizing their

sales according to varying needs of their customers. The same applies to

the soft-drink company also.

Both the two companies PepsiCo, Coca-Cola (I) Ltd. is aiming to rise well

above their competitors. So the researcher was entrusted to carry out

marketing overview about some of the most usually demand soft drink.

In order to clearly define the task we obtain ideas and insight through

the survey method from primary sources.Field research through observation

of customers and distribution channels.

Objective & Limitations

The subjects (companies) under study in this project are:-

36
i) PepsiCo

ii) Coca-Cola (I) Ltd.

Primary objective

The main purpose of this study is determining the different strategies that

are adopted by the companies. We will then see how effective these

strategies are in helping the companies achieve their respective targets.

The strategies will be evaluated to see which the best amongst them is and

which are most effective.

Secondary Objectives

The secondary objective of the research is to gauge the image of PepsiCo

Vis-a --Vis Coca-Cola [I] Ltd. The research was planned to find the effect of

the different brand position strategies adopted from time to time on

audience’s perception.

It is believed that the audience is perplexed by almost same appeal by both

the companies in their recent advertisements.

37
 The need is to identify new avenues and ways to project the image of

their company.

• To identify the difference in their tone, look and style of communication.

• To do a comparative study of who comes up with more exciting and

innovative offers.

• To find out the consumer’s perception about efficiency of marketing and

the future market leader.

• To sketch the imagery of the consumers about various brands and both
the companies in totally.

For this purpose fieldwork as well as table work was done to complete the
project. The various facts and figures of the companies were studied and
subsequently suggestions are made, which keep the company the vendors
and the consumers in mind.

38
 PRODUCT

The term soft drink was originated to distinguish the flavored

refreshment from hard liquor. Soft drink was flavored to change the habits of

earlier Americans who used to have hard liquor. The fruits and vegetable juices

are not considered soft drinks. Pepsi is a pure soft drink, which is enjoyed in our

195 countries. It is made of artificial flavors and contains no fruit juice or fruit

pulp.

How soft drinks are made:

Soft drink consists of carbonated water and syrup. Adding carbonated gas to

water under pressure produces carbonated water. The gas makes the water

bubble and fizz in most cases. Syrup is made of a concentrate and sweetener. A

concentrate is a blend of flavor and acid. In concentrate for most soft drinks also

include coloring. The concentrate contains a unique blend of ingredients, which

give Pepsi its distinctive flavor. Syrup can be also being prepared directly from

individual ingredients. Carbon dioxide gas gives beverage its sparkle and tangy

39
taste and prevents spoilage. While it has not been conclusively proved that

carbonation offers a direct medical benefit, carbonated beverage are also used

to alleviate post operative nausea when no other food can be tolerated. Carbon

dioxide is supplied to soft drinks by manufactures in a liquid form maintained

under approximately 1,200 pounds per square inch pressure in heavy steel

containers.

Many of the flavorings found in soft drinks come from natural sources such as

fruits juices and oils obtained from roots, citrus fruit peels, and leaves of various

plants. Some flavoring are artificial, but a similar to natural flavoring in taste.

Citric acid and phosphoric acid give soft drink a tart taste. Caramel is usually

used as a coloring in cola drinks. The sweeteners may come from maize, sugar

beet or sugarcane. Artificial sweetener, such as saccharine and aspartame is

used in Diet Pepsi and Diet Coke.

The mixing is carried out under the highest standards of quality control and

accordingly to precise instructions in order to insure that every consumer

always receives a product of the same trusted quality. The bottling of Pepsi in

modern plants such as there are in India is carried out at the rate of 600 bottles

40
a minutes. Pepsi is approved by the National Health Authorities of every country

in which it is sold.

Packaging

Pepsi is supplied in -

Returnable glass bottles (200 ml, 250 ml, 300 ml) which is supplied in

molded plastic shells.

1.5 liter PET bottles,

330 ml of cans,

PMX machines (Fountain Pepsi)

Fountain Pepsi (F P) Dispenses soft Drinks in plastic cups. There are two

methods of vending soft drinks.

1. Pre-mix system - In the premix system, the finished beverage is

prepared by the soft drink manufacturers and filled into 5 to 10 gallon

stainless steel tanks. The tanks of the beverage are attached to the vending

machine where the beverage is cooled and dispensed.

2. Post-mix system - In post-mix system the vending machine has its own

water and carbon dioxide supply. The water is supplied through Aqua Guard

41
purifier and is carbonated as required by carbon dioxide cylinder. It is then

mixed with concentrate or flavored syrup which is kept in BIB (Bag in Box)

as it is dispensed into the cup. Pepsi has post mix vending machines and

coke has pre mix vending machines.

3. Cans & Bottles - Among the different packages in the market in the next

couple of years could be cans and pet bottles - apart from the standard

glass bottles. One of the standard packages that one is likely to see in the

coming years is buying more at lower price. Pepsi introduced 200 ml bottles

of Pepsi at the price of Rs.6. It was an instant hit while packages of those

kinds are also being worked out keeping in view of the rural market. But it

could also lead to the killing of the standard 300 ml size bottles that is in

vogue now. The consumer

would get a choice of soft drink at a cheaper and an affordable price - even if

it means breaking of certain standards shapes and sizes of the packages.

The broad strategies of both penetrating the market are still being made.

And the amount of thought that is going into it can be made out from the

very fact that the manufacturers are thinking of such innovations as the

“picnic packages” of the brand for those on holiday trip. The battle will be

42
engrossing as packages will be brought to the market and be pulled by the

competing rivals. There would be price wars and competitions on qualities.

Brands –

The current Indian market consists of seven-flavor segment. Cola segment is by far

the most widely consumed soft drinks.

43
 SEGMENT BRAND

COLA PEPSI

ORANGE MIRANDA

CLOUDY LIME MIRANDA

LEMON

NIMBOOZ

CLEAR LIME 7-UP

MANGO SLICE

WATER AQUAFINA

In addition to these segments, Pepsi has developed wide range of soft

drinks such as Diet Pepsi and low sodium Pepsi, Sugar Free -Pepsi Max.

CHARACTERSTICS OF THE PRODUCT

44
These are some of the unique characteristics of the products:

1. Package is returnable and vulnerable to breakage.

2. Weight of package is twice as much as that of the product.

3. Has a seasonal demand resulting in partial idling of the distribution

network.

4. Demands highlight intensive availability of the product with very low

dealer index essential on account of “impulse demand”.

5. Occupies more shelf space (or cooler space) per a rupee worth of

investment than most other brand product. This factor, coupled with the

return ability of the container, involves a very high level of service frequency.

6. Ratio of distribution costs to selling price is higher than for any other

branded mass consumption product.

All these point to the fact that a penetrating distribution network

coupled with efficient feeding are the only means to higher sales.

45
 PREFERENCE OF SOFT DRINKS IN A DAY

Once a day 25%

Twice a day 20%
Once a week 5%
Other 50%

Figure-1

46
 TO GIVE THE PREFERENCES

More Popular 50%

Packaging 10%
Taste 30%
Price 10%

47
 Figure – 2

48
MARKETING STRATEGIES OF COMPANY AFFECTS THE SALES

Yes 80%
No 20%

Figure – 3

49
 FORM OF MARKETING STRATEGIES

Television Advertising 65%

Newspaper Advertising 5%
Outdoor Advertising 5%
Sales Promotion 25%

Figure – 4

50
 MORE EFFECTIVE ADVERTISING

Pepsi Co. 60%

Coke Co. 40%

Figure – 5

51
CREATIVE AND APPEALING ADVERTISING OF THE SOFT DRINK
COMPANY

Pepsi Co. 65%

Coke Co. 35%

Figure – 6

52
 INNOVATIVE AND EXCITING OFFERS

Pepsi Co. 55%

Coke Co. 45%

Figure –7

53
 MARKET SHARE PERCENTAGE IN GHAZIABAD-2008

Pepsi 48%
Coke 49%
Pure Drinks 3%

Figure - 8

54
 MARKET PERCENTAGE SHARE IN ALL OVER INDIA 2008

Pepsi 44%
Coke 51%
Local Brand 5%

Figure - 9

55
 FINDINGS & ANALYSIS

The Indian soft drinks market is at 140 million cases per year. This is very

low, even as compared to Pakistan and Bangladesh. All these factors

together have contributed to a 20% growth in the soft drinks industry. If this

demand continues to grow at 20% annually, within 10 years the volumes

could reach 1 billion cases. This kind of growth is the reason for the entry of

the two giants of the soft drink industry of the world.

Coca-Cola and Pepsi together control 95% of the entire Indian market. The

rest of the 5% is shared by companies like Cadbury-Schweppes etc. The

total no. of cases sold are 140 million of these 77 million cases of Cola

drinks are sold and 63 million of non-cola drinks. There is a rapid increase in

the sale of cola soft drinks Whereas in 1990, they accounted for a third of all

soft drinks sold, now their share is well over half. Also cola sales are growing

at a faster rate than non-colas. One of the reasons for this could be the

aggressive marketing strategies for Cola drinks by Pepsi and Coca-Cola.

56
Pepsi findings:

Pepsi is the largest selling soft drink in India today. In Ghaziabad it has 48%

of the market share. In India it has 44% of the market share making it the

largest selling soft drink, but the second largest company in terms of sales.

The soft drinks in Pepsi Foods LTD include :

1. Pepsi

2. Mirinda Orange

3. 7-Up

4. Mirinda Lemon

5. Slice

6. Mountain Dew

7. Diet pepsi

8. Aquafina

The main advantage the Pepsi has over its nearest competitor i.e., Coca-

Cola. Coca Cola is the first multinational to enter India, in the soft drinks

sector. Pepsi officials and ‘Dial-a-Pepsi’ scheme to grow the market, instead

57
of giving discounts at the retail level. Another point which attributed to

Pepsi’s success is the bottling operations. Pepsi does most of its bottling on

its own. Another significant investment of Pepsi has been fountains.

Fountains have considerably increased sales of Pepsi, as they have offered

consumers a whole new way to experience soft drink. According to a study

done, 80% of all soft drinks are consumed on premise, at the point of

purchase, rather than at home; thus the fountain initiative has paid off.

Thus we see that Pepsi has followed aggressive marketing strategies

making they get into the minds of the consumer by being visible inside and

outside the consumers home by way of television, radio Newspapers,

hoarding, sales-promotion schemes, etc.

58
 SWOT ANALYSIS

As per my findings and survey, I found that the Strengths, weaknesses,

opportunities and threats are as mentioned below:

Strengths:

 R&D for the improvement of products, technology innovation in the

production process is the major strength of PEPSICO
 Competitive advantage of having two clear lime product i.e. 7up &
Mountain Dew
 Economics of scale and economies of scope through large size and
diversification.
 Distribution Network is also one of the biggest strength
 Pepsi’s promotional schemes are far better than the coke

Weaknesses:

59
  Competitive disadvantage of having single cola product against Coke
 In some cases price matters a lot

Opportunities:

 Stable Legal and political environment that offers good potential for
growth
 Income level of customers are rising there by their purchasing power
akso rising
 Population of India is the greatest of opportunity for the industry

Threats:

 One of the major threat that Pepsi is facing not from smaller
organization but from its competitor that is coke
 Somewhere the price of substitute product matter

OBSERVATION

The PepsiCo. Using different marketing strategy to increase their sales. The
most important strategy chosen by Pepsi co. is to attract the dealer and
consumer by giving certain element to increase the visibility of the product
and make the consumer aware of the product. In technical term Pepsi co.
called it as RED (RIGHT EXECUTION DAILY). For this I collected the data
from various outlets located in Ghaziabad.

60
Data collected by me from the following areas:
• Salimar Garden

• Surya Nagar

• Indrapuram

• Vaishali-I

• Vashali-II

• Rajendra Nagar

• Vasundhra

• Shaheed Nagar

• Mohan Nagar

• Bhopura

• Jhanda Pur

• Border

• Maharajpur

• Kaushambi

61
 DAY - 01
ROUTE – Salimar Garden.
Truck no.:- UP-16 9029
Salesman Name: Rajesh

S.NO. NAME OF OUTLET PEPSI(share) COKE(share) FREEZE

1 Chauhan Sweet 40% 60% Coke

2 Shri Ram Sweet
& Fast Food 60% 40% Pepsi
Corner
3 Ram Genral 20% 80% No
Store
4 Swami
Dipartmental 80% 20% Pepsi
store & Dairy
5 Daily need
Departmental 60% 40% Freezer
store (pepsi)
6 Jai durga store 55% 45% Freezer
(coke)
7 Krishna General 70% 30% Pepsi &
store coke
8 OM Sai General 50% 50% Pepsi
store
9 Shiv Provision 60% 40%
& Genral st.
10 Chawla Bakery 40% 60% Pepsi,
coke
11 Agarwal Sweet 60% 40% Pepsi
12 Mother Bakery 40% 60% Coke
13 Rajat Vastra 100% 0% Private
Bhandar
14 New Agrwal 70% 30% Pepsi,
Sweet Plaza coke
15 South Indian 50% 50% Pepsi
St.
16 Avi Paan 30% 70% Freezer

62
 Bhandar (Coke)
17 Jai Luxmi Pan 50% 50% Freezer
Bhandar (Coke)
18 Raj Kirana & 60% 40% Coke
General St.
19 Ruchi 70% 30% Pepsi
Dipartmental
st.
20 Gurunanak St. 100% Coke
21 Shivani Super 35% 65% Coke,
st. Pepsi
22 Shri Bala ji 40% 60% Pepsi,
Kirana st. Coke
23 Sindhi 100% Private
Stationary St.
24 Tyagi 100% Pepsi
Departmental
st.
25 Ambe 50% 50% Pepsi,
Dipartmental Coke
St.
26 Agrwal Sweet 60% 40% Pepsi
Corner
27 Deep Genral St. 50% 50% Pepsi
28 Ambe St. 70% 30% Pepsi,
Coke
29 Jai Luxmi Store 60% 40% Private
30 Bhandari 40% 60% Private
Provision store

Note: This data show that the market captured by PepsiCo is

quite larger than the coke.
In this area market share of PepsiCo is 52.33% & coke is 47.67%

63
 DAY - 02
ROUTE – Surya Nagar.
Truck no.- UP-16 9017
Salesman Name-

S.NO. NAME OF OUTLET PEPSI(share) COKE(share) FREEZE

1 Pandit JI Cold 80% 20% Private

Drinks
2 Gomti Paan
Bhandar 90% 10% Private
3 Sukh Sagar 100% 0% No
Paan Bhandar
4 Ramu Paan
Bhandar 60% 40% Pepsi
5 Hari Provision
store 60% 40% pepsi
6 Auchu Gen. 30% 70% Freezer
store (coke)
7 Garg Provision 60% 40% No
store
8 Rastogi 70% 30% Freezer
Provision (Mother
store Dairy)
9 Mothers Pastry 55% 45% Pepsi,
Coke
10 Malhotra Hotel 50% 50% Pepsi,
coke
11 Satguru 00% 100% Coke

64
 Telicom Centre
12 Agrwal Sweet 50% 50% Coke
India
13 Sukh Sagar 60% 40% Private
Hotels Freezer
(Mother
Dairy)
14 Gym Point 60% 40% Pepsi,
coke
15 Rakesh Store 50% 50% No
16 Ankur Store 50% 50% Freezer
(Coke)
17 Ramu Provision 60% 40% Freezer
Store (Coke)
18 Maa Vaishno 50% 50% Coke
Departmental
Store
19 Pritish 30% 70% Coke
Dipartmental
st.
20 Mehndi 75% 25% Pepsi,Coke
Restorent
21 Rohit 30% 70% Private
Provision st.
22 Radhe Krishna 25% 75% NO
Dept. Store
23 I-way Santusty 100% Pepsi
Dept. Store
24 Ashiyana 60% 40% Pepsi
Departmental
st.
25 Aadarsh 50% 50% Pepsi
Provisional
Store
26 Gupta 55% 45% Pepsi
confectionary
27 Piyush Snacks 50% 50% Pepsi,
& Coke
confectionery
28 Shivam Dept. 65% 35% Pvt.
Store Freezer

65
 29 Kurban Paan 60% 40% Private
Bhandar
30 Mohit General 65% 35% Pepsi
store

Note: In this area the portion of PepsiCo in the market

Share is also high in comparison with Coke.
In this area market share of PepsiCo is 55.17% & coke is 44.83%.This

shows that PepsiCo has good market value.

DAY – 03
ROUTE – Indirapuram
Truck no.:- UP-16 9015
Salesman Name- Ramkumar

S.NO. NAME OF OUTLET PEPSI(share) COKE(share) FREEZE

1 Tinku Tea 60% 40% Pvt.

Point
2 Prajapati paan
Bhandar 70% 30% Private
3 Best Food 100% 0% Pepsi
Plaza park
4 Yadav Paan Pvt.
Bhandar 60% 40%
5 Chhtu General Pvt.
Store 60% 40%
6 Thakur ji Milk 50% 50% Pvt.
Agency

66
7 Aakash paan 60% 40% Freezer
Bhandar
8 Agrawal Sweet 50% 50% Pepsi,
Corner Coke
9 Mishra 30% 70% Coke
confectionery
10 Dipanshu 60% 40% Pepsi
Restaurant
11 Agrawal sweet 50% 50% Coke,
shopper pepsi
12 Sunil Dairy 60% 40% Freezer
13 Crystal Bakers 50% 50% Private
Freezer
14 Sanjay kirana 60% 40% Coke
Store
15 Aakash 50% 50% No
Departmental
store
16 Thakur Bakers 70% 30% Pepsi
17 Narang Store 30% 70% Pepsi
18 Rangilal Store _ 100%

19 Robson Store 30% 70% Freezer

20 Welcome Snacks 60% 40% Pepsi,Coke
21 Krishna Dairy 40% 60% Private
22 Sweet Palace 40% 60% NO
23 Hiralal Juice 40% 60% Coke
24 Raj General 60% 40% Pepsi,
Store Coke
25 Unique Pastry 50% 50% Private
26 Agrawal Store 60% 40% Pepsi,Coke
27 Family Bakers 50% 50% Pepsi

28 Mahalaxmi 60% 40% Pepsi

Store
29 Kajal Cold 60% 40% Coke
drinks

67
30 Ganpati 70% 30% Pepsi
General Store

Note: As per the survey of this area I personally found that the PepsiCo

brands are available at almost most of the shop and the share of PepsiCo

against coke a little more higher. Its market share is near about 53% and

Coke is 47%.

DAY – 04
ROUTE – Vaishali
Truck no.- UP-16 90
Salesman Name-

S.NO. NAME OF OUTLET PEPSI(share) COKE(share) FREEZE

68
1 Sri Bala ji 60% 40% Pepsi,coke
Departmental
Shop
2 Bombay Bajar
Departmental 60% 40% Private
store
3 Hotel Abhay 50% 50% Pepsi
Palace
4 Raju Tea Shop 60% 40% Coke
5 Swaad 00 100% Pvt.
Restaurent
6 Navin Auto 30% 70% Pvt.
Service &
store
7 Shri Paan 50% 50% Coke
Bhandar
8 Jaya General 50% 50% Pepsi,
Store Coke
9 Gupta swets 30% 70% Coke
10 S.K.Storage 50% 50% Pvt.
11 Shiddharth 50% 50% Coke,
Provision pepsi
Store
12 Sri Ram Store 100% 00 Pepsi
13 Bala ji Bakers 50% 50% Coke, Own
14 Srinagar 80% 20% Pepsi,Coke
Fabrics
15 Vijay Paan 100% 00 No
Bhandar
16 Chaurasiya 80% 20% NO
Paan Bhandar
17 Prem Paan 60% 40% Pepsi
Bhandar
18 Mehfil chicken 60% 40% Pepsi
Poiint
19 Sriram Stores 30% 70% No
20 Pintu Paan 60% 40% Coke
Bhandar
21 Deepak STD 40% 60% Private
22 Shyam sweet & 60% 40% Coke

69
 confectionery
23 Vijay Paan 00 100% Coke
Bhandar
24 Mani sweet 50% 50% Pepsi
corner & café
25 Catty pastry 60% 40% Pvt.
Shop
26 Rohtash 50% 50% Pepsi
general store
27 Sri general 80% 20% Pepsi
store
28 Agrawal Store 40% 60% Pepsi

29 Varun Pan 60% 40% Pepsi

Bhandar
30 Ram Ratan 70% 30% Pvt.
Gupta

NOTE: In this area the market share of PepsiCo is greater than coke. PepsiCo

is having approx 54% and coke is 46% only.

70
 DAY – 05
ROUTE – Vasundhara
Truck no.:- UP-16 8016
Salesman Name- Mr. Ram Niwas

S.NO. NAME OF OUTLET PEPSI(share) COKE(share) FREEZE

1 Pal Dairy 40% 60% Pvt.

2 Baba Provision 60% 40% Pepsi,
Store coke
3 Chaurasiya 30% 70% Freezer
Paan bhandar
4 Vishnu 40% 60% Pvt.
Provison Store
5 Agrawal sweet 30% 70% Pepsi,
India coke
6 Sai Dairy 40% 60% Pepsi
7 Taya general 80% 20% Coke
store
8 Chaurasiya 50% 50% Freezer
Paan
9 Mewar Inst. 40% 60% Pepsi,Coke
10 Bharti general 60% 40% Pepsi
store
11 Unique Pastry 50% 50% Coke,
pepsi
12 Vijay 30% 70% Pvt.
Restaurent
13 Popular pastry 30% 70% Coke,Pepsi
14 Bakers John 50% 50% Pepsi
Shop
15 Viru 20% 80% Coke
confectionery
16 I A PAAN 50% 50% Freezer
17 Vijay 40% 60% Pepsi
Confectionery
18 Home sweets 55% 45% Pvt.

19 Rahul Dairy 30% 70% Freezer

71
20 Aayush 50% 50% Pepsi,Coke
Provision
Store
21 Morning 40% 60% Private
Departmental
store
22 A-Z Store 60% 40% Pepsi,Coke
23 Surya pastry 60% 40% Pepsi
point
24 Agrawal Sweets 50% 50% Pepsi,coke

25 Honey Dairy 60% 40% Freezer

26 Gadhwal Paneer 60% 40% Pepsi
27 Rajsthan Dairy 60% 40% Pepsi

28 Tyagi general 40% 60% Pvt.

Store
29 Singh general 55% 45% Coke
Store
30 Jha general 60% 40% Pvt.
store

NOTE: In this area after surveying these shops I found that the PepsiCo is

having only 47% of market share rests are captured by Coke.

72
 DAY – 06
ROUTE – Mohan Nagar
Truck no.:- UP-16 9016
Salesman Name- Mr. Anil kumar

S.NO. NAME OF OUTLET PEPSI(share) COKE(share) FREEZE

1 M/S Sarla 100% 00 Pvt.

Fabric Pvt.
Ltd.
2 Nithila Paan 50% 50% Pvt.
bhandar
3 B.K.Paan shop 50% 50% Freezer
4 Bhola Paan 30% 70% Freezer
5 M.T.Juice 50% 50% Pepsi,coke
corner
6 Jaishwal 50% 50% Coke
Enterprizes
7 Pooja General 40% 60% Pepsi
Store
8 Paras Dairy 50% 50% Pepsi
9 BLS Inst. Of 30% 70% Pepsi
Management
10 Harihar Food 50% 50% Pepsi,coke
corner
11 Maa Bhagwati 60% 40% Pepsi
sweets
12 Pal Dhaba 40% 60% Pepsi,coke
13 Aahuja Vaishno 45% 55% Coke,Pepsi
Bhojnalay
14 Deepak Dhaba 35% 65% Coke
15 DabaS 60% 40% Pepsi,Coke

73
 Resrtaurent
16 Pradhan Dhaba 50% 50% Pepsi
17 Mohan Meakins 50% 50% Pepsi
18 Chaurasiya 60% 40% Pepsi
Paan Bhandar
19 Karan Pastry 60% 40% Pepsi
20 Durga 40% 60% Pvt.
confectionery
21 Yadav Paan 40% 60% Pvt.
Bhandar
22 Chaudhari 40% 60% Pvt.
restaurant
23 Irfan Paan 60% 40% Freezer
Bhandar
24 Gurukripa 50% 50% Pepsi,coke

25 Fresh Fruit 40% 60% Pepsi,coke

juice corner
26 Raja vaishno 50% 50% Pepsi,coke
bhojanalay
27 Paul 50% 50% Pepsi
bhojanalay
28 Agrawal Store 40% 60% Pepsi,coke

29 Modern College 40% 60% Pepsi

of Law
30 New Aman 50% 50% Pvt.
Refreshing
Point

Note: After having a visit to these shops I came to know that this market is

also a coke market because Coke is having 54% share and PepsiCo is only

46%.

74
 DAY – 07
ROUTE – Saheed Nagar
Truck no.:- UP-16 90
Salesman Name-Kuldeep

S.NO. NAME OF OUTLET PEPSI(share) COKE(share) FREEZE

1 Bhaskar Store 60% 40% Pepsi

2 Pappu Provision 50% 50% Pvt.
Store
3 Ramesh Cycle 40% 60% Pvt.
Store
4 Rakesh General 50% 50% Pvt
Store
5 Avon Store 50% 50% Pvt.
6 Sri Krishna 45% 55% Pvt.
Bhojanalay
7 Food plus chicken 40% 60% Pepsi
Plaza
8 Chaudhary Sudhh 50% 50% Coke
Bhojanalay

75
9 Agrawal Corner 40% 60% Pvt.
10 Tyagi 50% 50% Pepsi
Departmental
Store
11 OM General Store 50% 50% Pepsi
12 Sharma Provision 60% 40% Pepsi,coke
& General Store
13 Ambe Sweets 60% 40% Pepsi
14 Jagdamba Sweets 35% 65% Pepsi
15 Officers Mess 40% 60% Pepsi
16 Krishna Sweets 50% 50% Pepsi
17 Suvidha 50% 35% Pepsi
Departmental
Store
18 Sri Bala Ji 60% 40% Pepsi
general Store
19 Baba ji General 40% 50% Pepsi
Store
20 M.H.Confectioners 60% 40% Pvt.
21 Ramesh General 40% 60% Pvt.
Store
22 Rakeeb General 40% 60% Pvt.
Store
23 Tamanna 60% 40% Pepsi
Confectioners
24 Om general Store 30% 70% Pvt.

25 Chaudhary 40% 60% Pepsi

Restaurent
26 Priya General 60% 40% Pepsi
Store
27 The Unique Sweets 40% 60% Pvt.
& Namkeen
28 Sri R$am General 60% 40% Pepsi
Store
29 Gopal Dairy 70% 30% Pepsi

30 Karim General 40% 60% Pepsi

Store

76
 NOTE: In Saheed Nagar Area the sale of PepsiCo drinks is quite equal to the

Cokes. Coke Is having 51% market Share and PepsiCo is at 49%.

DAY – 08
ROUTE – Border
Truck no.:- UP-16 9016
Salesman Name-Rakesh Sharma

S.NO. NAME OF OUTLET PEPSI(share) COKE(share) FREEZE

1 Laxmi 60% 40% Pepsi

Provision
Store
2 Amba Provision 80% 20% Pepsi
store

77
3 Mohan General 40% 60% Pvt.
Store
4 Vijay General 50% 50% Pvt
Store
5 Nidhi Misthan 20% 80% Pvt.
& Namkeen
6 Muskan Bakery 65% 35% Pepsi
7 Rama 00 100% Pvt.
Confectioners
8 Pooja Sweets 20% 80% Pvt.
9 Bangla Sweet 60% 40% Pepsi
corner
10 Gopal halwai & 30% 70% Pvt.
catters
11 Goswami Paan 70% 30% Pepsi
Bhandar
12 Lavkush 60% 40% Pepsi
Provision
Store
13 Chhotu 60% 40% Pepsi
Provision
Store
14 Tea Point 65% 35% Pvt.
15 Rajendra Tea 40% 60% Pvt.
Stall
16 Raju Provision 60% 40% Pepsi
Store
17 Raj Tea Point 00 100% Pvt.
18 Maa Janki 30% 70% Pvt.
Sudhh
Bhojanalay
19 Chaudhari Tea 30% 70% Coke
Stall
20 Bisht Sweet 50% 50% Pepsi,
corner coke
21 Vishnu Tea 20% 80% Pvt.
Point
22 Chaudhary 40% 60% Pvt.
Bhojnalay
23 Gupta General 30% 70% Pvt.

78
 Store
24 Jain provision 30% 70% Pvt.
Store
25 Gyani General 100% 00 Pvt.
Store
26 Sabrwal 100% 00 Pvt.
General Store
27 Vaushno Dhaba 50% 50% Pepsi

28 Khandelwal 40% 60% Pvt.

Sweets
29 Chinku Tea 20% 80% Pvt.
Point
30 Ravi Genmeral 100% 00 Pvt.
Store

NOTE: This data shows that the market share of PepsiCo is 0nly 48% and

rests are covered by Coke.

DAY – 09
ROUTE – Vaishali-II

79
 Truck no.- UP-16 90
Salesman Name-Anil Kumar Sharma

S.NO. NAME OF OUTLET PEPSI(share) COKE(share) FREEZE

1 Daksha Telecom 50% 50% Pvt.

2 Banarasi Paan 60% 40% Pvt.
Bhandar
3 Chhotu Tea 60% 40% Pvt.
Stall
4 Santosh Paan 40% 60% Pvt
Bhandar
5 Khushbu Pastry 70% 30% Pvt.
Shop
6 Agrawal 60% 40% Pvt.
Departmental
Store
7 Preeti 50% 50% Pvt.
Departmental
Store
8 Mamta 00 100% Pvt.
Provisiion
Store
9 Anuj General 50% 50% Pvt.
Store
10 Shiv Paan 70% 30% Pvt.
Bhandar
11 Mohit Sweets 60% 40% Pepsi
12 Vidya 50% 50% Pvt.
Stationery
13 Rawat general 00 100% Pvt.
Store
14 Sharma 00 100% Pvt.
Provision
Store
15 New style paan 00 100% Pvt.
Bhandar
16 Amarson 60% 40% Pepsi
provision
Store
17 Rahul 30% 70% Pepsi

80
 provision
Store
18 Ramesh Paan 70% 30% Pepsi
Bhandar
19 Rahul Paan 50% 50% Pvt.
Bhandar
20 Amul parlour 60% 40% Pepsi
21 Raj milk Dairy 50% 50% Pepsi
22 Gadhwal Paneer 50% 50% Pvt.
Bhandar
23 R.K.Provisiona 50% 50% Pvt.
Store
24 Pandit Ji 100% 00 Pepsi
General Store
25 The bakery 20% 80% Coke
Shop
26 Singhal 100% 00 Pepsi
provision
Store
27 Suvidha Store 20% 80% Pvt.

28 Uttranchal 60% 40% Pvt.

general Store
29 Shubham 45% 55% Coke
Provision
Store
30 Jagdamba Tea 50% 50% Pvt.
Stall

NOTE: As per the survey of this area I found that the coke is having higher

market share than PepsiCo. PepsiCo is having 47% and coke is about 53%.

81
 DAY – 10
ROUTE – Bhopura
Truck no.- UP-16 90
Salesman Name- M.H.Kalam

S.NO. NAME OF OUTLET PEPSI(share) COKE(share) FREEZE

1 Aajad Tiranga 50% 50% Pepsi

Hotel
2 Mulla Ji Paan 50% 50% Pvt.
Bhandar
3 Sardar ji 40% 60% Pvt.
4 Haji Sweets 30% 70% Pepsi,
coke
5 Haji Faiz 70% 30% Pepsi
Sweets
6 Yadav Dhaba 60% 40% Pepsi
7 Babu Dhaba 40% 60% Coke
8 KAKA tea Stall 60% 40% Coke
9 Akhtar Tea 60% 40% Pepsi
Stall
10 Naresh paan 50% 50% Pepsi
Bhandar
11 Najakat Ali 50% 50% Pepsi,
Coke
12 Agrawal Sweets 30% 70% Pepsi,Coke
13 Rajpoot 80% 20% Pepsi
General Store
14 Agrwal 40% 60% Coke
Provision
Store
15 Ravi General 60% 40% Coke,
Store pepsi
16 Annu go Store 30% 70% Coke,Pepsi

82
17 Kuldeep Kirana 60% 40% Pepsi
Store
18 Ravi Paan 50% 50% Pepsi
Store
19 Kailash Tea 60% 40% Pvt.
Stall
20 Agrawal sweets 45% 55% Pepsi,
Coke
21 A-One Water 30% 70% Pvt.
Suppliers
22 Pooja General 50% 50% Pvt.
Store
23 Munna Tea 80% 20% Pepsi
Point
24 Pandit Ji 60% 40% Pepsi
General Store
25 The bakery 20% 80% Coke
Shop
26 Singhal 60% 40% Pepsi
provision
Store
27 Suvidha Store 20% 80% Pvt.

28 Uttranchal 60% 40% Pvt.

general Store
29 Shubham 45% 55% Coke
Provision
Store
30 Jagdamba Tea 30% 70% Pvt.
Stall

Note: In this area the market captured by the two cola companies are quite
equal. PepsiCo is 49% and Coke is having 51%.

83
 DAY – 11
ROUTE – Jhandapur
Truck no.- UP-16 90
Salesman Name-Kailash

S.NO. NAME OF OUTLET PEPSI(share) COKE(share) FREEZE

1 Paal Sweets 00 100% Pepsi

2 Kausik General 50% 50% Pvt.
Store
3 Anil 40% 60% Pvt.
Departmental
Store
4 Paal Sweet 55% 45% Pepsi
House
5 Kausik Hotel 30% 70% Pvt.
6 Bansal Dairy 00 100% Pvt.
7 Malik dairy 50% 50% Pvt.
8 Paal Dairy 70% 30% Coke
9 Swami General 50% 50% Pvt.
Store
10 Jai Sai Bakery 00 100% Pvt.
&
confectionery
11 Vashishth 70% 30% Pvt.

84
 General Store
12 Bharat General 50% 50% Pvt.
Store
13 Bunty General 100% 00 Coke
Store
14 Pandit ji tea 100% 00 Coke
stall
15 Notel Dhaba 0 100% Pvt.
16 Bala ji kirana 65% 35% Coke
Store
17 Mangal Kirana 40% 60% Pvt.
Store
18 Raghav Sweet 00 100% Pvt.
Corner
19 Nanak Chand 60% 40% Coke
Parag Dairy
20 Jagdamba Sweet 30% 70% Pepsi
House
21 Rathore Sweet 00 100% Pepsi
House
22 Hotel dhaba 50% 50% Pvt.
23 Yadav Dairy 50% 50% Pepsi
24 Paal Sweet 00 100% Pepsi
House
25 Mukesh General 20% 80% Pvt.
Store
26 Raghav Hotel 50% 50% Pvt.
27 Kausik 20% 80% Pvt.
Provison Store
28 Bakery shop 40% 60% Pepsi

29 Gopal Tea 55% 45% Pvt.

Stall
30 Rastogi 50% 50% Pvt.
General Store

85
Note: The market captured by PepsiCo is lesser than the coke Because in

this area coke is having aprox 60% of the market share and PepsiCo is only

40%.

PUBLIC RELATIONS ANGLE

Innovative and exciting offers

The respondents were asked to compare between PepsiCo and Coca-Cola

[I] Ltd. in terms of who comes up with innovative and exciting offers, or

rather things which are lively and interesting to participate.

Quick and responsive to different occasions and events.

Comparing PepsiCo and Coca-Cola [I] Ltd, 55% of the respondents replied

that it was undoubtedly PepsiCo. They supported their statement with

86
reasoning, saying so that PepsiCo was first to associate with India’s 50

years of independence.

On the other hand 22% of the respondents felt that Coca-Cola [I] Ltd. is not

trailing back. It sponsors mega events like different Cricket tournaments,

Olympic Games, World Cup Football etc.19% of the respondents came up

with a more balanced answer. They said if one of the companies sponsors

one event it’s sure that the other will definitely go on for the next. It’s a tough

tussle and is really difficult to demarcate today.

Future leader in the market

When the respondents were asked about their perceptions, as who would be

the future leader in the market, 42% of the respondents replied in favor of

PepsiCo. According to them PepsiCo has entered Indian market prior to

Coca-Cola [I] Ltd. and has strong foothold now. Above that it is innovative

and there is freshness in its Ads. The only thing required is to maintain its

position.38% of the respondents claimed that after taking over Parle

Industries Coca-Cola [I] Ltd. is in a comfortable position. If it can promote

brands of Parle Industries like Thums Up and Limca which has a substantial

market in India, it may turn out to be the leader in future.

87
Again 15% of the respondents feel that both the companies are fighting

tooth and nail for supremacy. The one which commits an error in its strategy

will trail behind.

88
 CONLUSIONS

Pepsi is the market leader in terms of soft drinks in India, but comes

second to Coca-Cola which consists of Coca-Cola brands.

Pepsi’s main target is obviously to be the market leader and leave its

nearest competitor, Coca-Cola, far behind. To achieve this Pepsi seems to

be relying on mass advertising. They spend about 60-70 crore rupees

annually on marketing activities. The consumer is bombarded with Pepsi

advertisements, sign, logo’s etc., everywhere.

Pepsi’s core market is the young –adult and Pepsi is taking great measures

to change the perception of these young-adults., Pepsi wants that these

consumers should associate all colas as Pepsi, the brand Pepsi and cola

should be synonymous with each other. This they are trying to do by getting

the heroes of these consumers to endorse their product e.g. Sachin

Tendulkar and also by advertising for and by youngsters.

Pepsi drinks are available in almost the whole of India, this shows the

importance paid to distribution. Brand loyalists are very few in the market.

Thus the drink should be easily available, so that consumers cannot shift

their preferences.

89
Consumers

For the purpose of the study, questionnaires were prepared for the

Consumers. Care was taken to interview all types of consumers, i.e.

a. Different age groups

b. Males and females

c. People from different localities, etc.

In all about 100 consumers were interviewed. The conclusions that one can

draw from these answers provided by the consumers showed that marketing

activities do form a major part of the decision.

One thing that was common amongst all the consumers who were once a

day or once a week. The number one factors the influences a customer

while buying a soft-drink was taste. This was true for all the consumers who

were interviewed. The rest of the conclusions as deducted from the

questionnaires are as follows :

Conclusion (consumers)

The younger generation preferred soft drinks to the older generation.

90
a. Children upto 15 years of age liked to have soft drinks upto 2-3 times a

day.

b. Young adults liked to have soft drinks upto 1-2 times a day.

c. Adults liked to have soft drinks about once or twice a week.

Children preferred Coca-Cola Fanta, Mirinda orange. Young adults liked

Pepsi, Mountain Dew. The older generation preferred Coca-Cola, Limca &

Mirinda Lemon.

The reason given for choice of favorite soft drink was taste and easy

availability. Only if the consumer liked the taste of drink, he would have it

again.95% of the consumers felt that marketing strategies of the company

did affect the sales of their soft-drink.

Marketing strategy affect or not

100%

80%

60% yes

40% no

20%

0%

91
Marketing strategies made the consumer try a drink for the first time. The

second time it was the consumer’s choice himself and not strategy could

affect that. Youngsters were more acceptable to change. They tried different

drinks, Cola and non-Cola. Adults stick to one and they prefer drinks that do

not affect their health, like Limca.

Major number of people found television advertising to be the most effective.

Young and the old, all liked to watch the advertisements on television.

Sponsoring events, outdoor advertising and sales promotion schemes were

second choice of the consumers. Under television advertising, Pepsi came

in as the number 1 favorite of the people the advertisement of Shah-Rukh

Khan and the dog was the favorite of the consumers. Their new

advertisement of Mirinda Lemon is also lifted by the people. The

advertisement that came in second was, the Coca-Cola advertisement of the

people Cricket and the song Must-Kalander going on at the back. These,

advertisement remained most in the minds of the people Most of the

consumers felt that Pepsi was the market leader in the soft-drink industry, in

92
Delhi as well as in India. Whereas while Pepsi is the leader in Delhi, in India

Coca-Cola is number one.

99% of the consumers interviewed felt that the marketing strategies of the

Coca-Cola and Pepsi have helped them in attaining the huge market share

that they possess.Women and children prefer cans as compared to men.

These are the major conclusion that can be drawn about a consumers’

behaviour. Companies must take the initiative of finding out the habits of the

consumers and then changing them, in their favour.

RECOMMENDATIONS

Soft drinks are an impulse product. When a person is thirsty, he would first

think of water or tea. Some even would prefer ‘Nimbu Pani’.

The Indian population is the largest in the world today; there can be no other

country in the world, which provides so much of an opportunity for the soft-

drink manufacturers. The Indian soft drink market is at 140 million cases per

year, this is very low. Thus the consumption of soft drink can go up.

93
Coca-Cola wants to accomplish this feat by themselves. To do this the

industry has to take certain steps. All the companies are fighting to get a

major share of this growing market. They should all try to increase the total

market along with their individual shares.

On the basis of all the field work and table work done, some suggestions

can be made, which may help the company in increasing the total market as

well as the sale of the companies. The various suggestions that can be

made are as follows:-

• Soft drinks retail at prices between Rs. 6 and Rs. 10. These are

expensive when measured against purchasing power.

• According to one study, it takes an Indian 50 minutes of work to be

able to buy a bottle in other countries, the norm is five minutes. Thus

to increase the total market of soft drinks, manufactures should try

and decrease the prices, so as to increase sales.

• Availability is a major factor, which makes the consumer buy a soft

drink. Soft drinks should be made available more readily than

present.

• Soft drink cans which are very convenient, as the consumer can

take them anywhere, unlike a bottle, are very expensive retailing

94
 from Rs. 20-Rs. 25. To increase sale of cans, this price should be

brought down.

Innovations increase sales of company. Thus the companies should

constantly come out with innovative ideas.Example-300 ml,250ml plastic

bottles, which the consumer can take with him, unlike the glass bottles,

which he has to return. Plastic bottles can even be used again by

households for various purposes.

The companies should conduct studies to get to know about consumer

habits.

If the companies know all this and more about Indian consumer behaviour, it

could tell them how to sell their drinks, so as to increase sales.

It is seen In India, that people prefer having their drinks with or after food.

Companies could have commercials which show people enjoying their drink

with a good meal, so that consumers associate drinking soft drinks while

having food.

Companies should try to educate the consumer about the health related

subject. For e.g:-

a) Limca is recommended to patients by doctors.

b) Cola drinks are known to be very fattening ,

95
Companies should try to build high brand equity. This provides a number of

advantages to the company.

a) The company enjoys reduced marketing costs because of high level of

consumer brand awareness and loyalty.

b) The company will have more trade leverage in bargaining with

distributors and retailers since the customer expects them to carry the

brand.

c) The company can change a higher price than its competitors because

the brand has higher perceived quality.

d) The company can more easily launch brand extension.

e) Above all, the brand offers the company some defence against fierce

price competition.

The companies should go in for diversification Once the brand is known, it is

easier to sell more of its products.

Advertising is a way to build brand image. It does not promote quick selling.

Thus companies can use advertising for:

a) Brand image building

96
b) Reminder advertising, reminding people to buy these drinks.

c) Reinforcement advertising-Telling people that they have made the right

choice.

Television advertising seems to make a impact on the consumers (based on

questionnaire answers) so companies should concentrate more on television

advertisements.

Sales promotion tools create a stronger and quicker response. Thus sales

promotion tools such as coupons, contests, premiums and the like should be

used to dramatize product offers and to boost sales. Sales-promotion effects

are usually short run and induce the people to purchase soft drinks, now.

Coca-Cola and Pepsi have taken up sponsoring of events on a major

scale.All kinds or events, whether big (Wills Worked cup) or small (college

contests) have either Pepsi or Coke banners of sponsorship. The

effectiveness of this can be questioned. Whether these activities increase

sales or not is a big huge question mark.

97
 BIBLIOGRAPHY

 Marketing Management- By Philip Kotler

 Business world

 Out look

 Times of India

 www.Pepsico.indialtd

 www.pepsico/freewekipedia

 Research methodology- By C. R. Kothari

98
 QUISTIONAIRE

The questionnaire had been designed in such a way to find

out:

• The effectiveness of distribution channel

• The current market status of this brand
• The drawbacks in the product
• The drawbacks in the distribution channel
• The most demanded brand
• The most demanded flavor

1. Name of the outlet ________________________

99
 2. Contact Person ________________________

3. Address ________________________

4. Telephone Number

5. Type of Organization

a. Convenience

b. Grocery

c. E & D

Q1. Which brand of cold drinks do you sale more?

Ans.
Pepsi Coke

Q2. Which flavor cold drinks do you sale more?

100
Ans.

Q3. What is your monthly sale?

Ans.

Q4. Which brand of cold drinks do you prefer to sell

more?

Ans.
Pepsi Coke

Q5. Why do you prefer to sell this particular brand

more?

Ans.
a) Easily available
b) More demand
c) Quality factor

Q6. Generally which brand of cold drinks customer/

consumers demands?

101
Ans.

Q7. When you talk about drinks which brand comes to

your
mind?

Ans.

Q8. Whether the customers are already aware about this

brand?

Ans.
Yes No

Q9. Which are the brands available in your shop?

Ans.

Q10. Number of buyers who buy this brand per day?

Ans.
a) 0-5
b) 5-10
c) 10-15

102
 d) Above 15

Q11. Are you satisfied with the current margin on this

brand?

Ans.

Yes No

Q12. Whether you are getting any complaints from

customers, specify?

Ans.

Q13. To which brand and reason.

Ans.

• Brand

• Reason

Q14. Recommendation for company to more sales:

Ans.

103