PROJECT REPORT

ON
“CUSTOMER SATISFACTION OF PEPSI"

In partial fulfillment of the required for the degree of

Master of business administration

SUBMITTED TO: SUBMITTED BY:

Dr. Ashutosh Mishra Pankaj Kumar Gautam
(Head of Department) MBA IVth Sem
Roll no. - 1906660700164

SRM BUSINESS SCHOOL, LUCKNOW (666)

(Approved by AICTE, Ministry of HRD, Govt. of India and Affiliated to Dr. A.P.J. Abdul
Kalam Technical University, Lucknow

Nh-24, Sitapur Road, Bakshi Ka Talab, Lucknow

(2020-2021)

i
 DECLARATION

I, hereby, declare that the Project entitled Project Report on

“CUSTOMER SATISFACTION OF PEPSI" is an outcome of my own efforts

under the guidance of Dr. Ashutosh Mishra (Head of Department) The project is

submitted to the SRM BUSINESS SCHOOL, LUCKNOW, for the partial

fulfillment of the award of the degree of Master of Business Administration 2020-

21.

I also declare that this project report has not been previously

submitted to any other college.

Pankaj Kumar Gautam

MBA IVth Sem
Roll no. - 1906660700164

ii
 ACKNOWLEDGEMENT

It’s a great privilege that I have done my project in such a well-organized and

diversified organization. I am great full to all those who helped and supported me

in completing the project.

First of all I am highly grateful to Dr. Ashutosh Mishra (Head of Department)

the mentor of my Research Report for the help provided by them in various forms

and a special thanks to our head of the department Dean Sir for giving enough time

to complete our report and thanks to employees also for their cooperation and

sharing their views and opinions.

Last but not least, I am also thankful to my parents, all college staff and my friends

for helping me directly or indirectly in my project

iii
 PREFACE

Marketing plays vital role in today’s business scenario in consumer product

Company, when there is such a high competition in the market.

The emphasis in the project is providing the study an insight into Pepsi . The

project is designed to provide participation of MBA program as on the job

experience. This has given a chance to try and apply the academic knowledge and

gain insight into corporate culture. This helps in developing decision making

abilities and emphasizes on active participation by the student.

I undertook my project a leading and marketing partner of the Pepsi . During

the training, I had work on the project “CUSTOMER SATISFACTION OF
PEPSI". I gained valuable experience & knowledge during this survey. This
project consists of my findings after data analysis & conclusions were drawn
and recommendations were put forward.

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 EXECUTIVE SUMMARY
Soft drink is one of the fast growing industries in India. The Pepsi goods can be

further classified segments. Marketing includes all the fulfill the all segment of

consumers. Marketing is also to convert social needs into profitable opportunities.

So this topic provides all the essential to theoretical knowledge and to inculcate the

efficiency. It is also requirement for the company to improve their service and

quality for achieving their ultimate goal.

Project Title "Marketing Strategy Of Pepsico"The topic has been already given

by the company to collect information about current status of the online goods that

is given by the company to the retailer for selling of every brand of Pepsi .

Location : Lucknow

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 TABLE OF CONTENT

Chapters
1. Introduction 1-15

2. Literature Review 16-21

3. Industry profile 22-41

4. Company Profile 42-78

5. Objectives of the study 79-80

6. Research Methodology 81-85

7. Data Analysis & Interpretations 86-96

8. Findings 97-8

9. Suggestions/Recommendations 99-100

10.Conclusion 101-102

11.Appendix 103-104

12.Bibliography 105

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INTRODUCTION

1
 INTRODUCTION

Customer satisfaction
Customer satisfaction is a term frequently used in marketing. It is a measure of
how products and services supplied by a company meet or surpass customer
expectation. Customer satisfaction is defined as "the number of customers, or
percentage of total customers, whose reported experience with a firm, its products,
or its services (ratings) exceeds specified satisfaction goals." In a survey of nearly
200 senior marketing managers, 71 percent responded that they found a customer
satisfaction metric very useful in managing and monitoring their businesses.
It is seen as a key performance indicator within business and is often part of
a Balanced Scoretwo wheelerd. In a competitive marketplace where businesses
compete for customers, customer satisfaction is seen as a key differentiator and
increasingly has become a key element of business strategy.
"Within organizations, customer satisfaction ratings can have powerful effects.
They focus employees on the importance of fulfilling customers' expectations.
Furthermore, when these ratings dip, they warn of problems that can affect sales
and profitability.... These metrics quantify an important dynamic. When a brand
has loyal customers, it gains positive word-of-mouth marketing, which is both free
and highly effective."
Therefore, it is essential for businesses to effectively manage customer satisfaction.
To be able do this, firms need reliable and representative measures of satisfaction.
"In researching satisfaction, firms generally ask customers whether their product or
service has met or exceeded expectations. Thus, expectations are a key factor
behind satisfaction. When customers have high expectations and the reality falls
short, they will be disappointed and will likely rate their experience as less than
satisfying. For this reason, a luxury resort, for example, might receive a lower
satisfaction rating than a budget motel—even though its facilities and service
would be deemed superior in 'absolute' terms."
The importance of customer satisfaction diminishes when a firm has
increased bargaining power. For example, cell phoneplan providers, such
as AT&T and Verizon, participate in an industry that is an oligopoly, where only a

2
few suppliers of a certain product or service exist. As such, many cell phone plan
contracts have a lot of fine print with provisions that they would never get away if
there were, say, 100 cell phone plan providers, because customer satisfaction
would be far too low, and customers would easily have the option of leaving for a
better contract offer.
There is a substantial body of empirical literature that establishes the benefits of
customer satisfaction for firms.

Purpose

A business Airtel two wheelerlly is continually seeking feedback to improve

customer satisfaction.
"Customer satisfaction provides a leading indicator of consumer purchase
intentions and loyalty." "Customer satisfaction data are among the most frequently
collected indicators of market perceptions. Their principal use is twofold:"

1. "Within organizations, the collection, analysis and dissemination of these

data send a message about the importance of tending to customers and
ensuring that they have a positive experience with the company's goods and
services."
2. "Although sales or market share can indicate how well a firm is
performingcurrently, satisfaction is perhaps the best indicator of how likely
it is that the firm’s customers will make further purchases in the future.
Much research has focused on the relationship between customer
satisfaction and retention. Studies indicate that the ramifications of
satisfaction are most strongly realized at the extremes."

On a five-point scale, "individuals who rate their satisfaction level as '5' are likely
to become return customers and might even evangelize for the firm. (A second

3
important metric related to satisfaction is willingness to recommend. This metric is
defined as "The percentage of surveyed customers who indicate that they would
recommend a brand to friends." When a customer is satisfied with a product, he or
she might recommend it to friends, relatives and colleagues. This can be a
powerful marketing advantage.) "Individuals who rate their satisfaction level as '1,'
by contrast, are unlikely to return. Further, they can hurt the firm by making
negative comments about it to prospective customers. Willingness to recommendis
a key metric relating to customer satisfaction."
Theoretical Ground
"In literature antecedents of satisfaction are studied from different aspects. The
considerations extend from psychological to physical and from normative to
positive aspects. However, in most of the cases the consideration is focused on two
basic constructs as customers expectations prior to purchase or use of a product
and his relative perception of the performance of that product after using it.
Expectations of a customer on a product tell us his anticipated performance for that
product. As it is suggested in the literature, consumers may have various "types" of
expectations when forming opinions about a product's anticipated performance.
For example, four types of expectations are identified by Miller (1977): two
wheelerl, expected, minimum tolerable, and desirable. While, Day (1977) indicated
among expectations, the ones that are about the costs, the product nature, the
efforts in obtaining benefits and lastly expectations of social values. Perceived
product performance is considered as an important construct due to its ability to
allow making comparisons with the expectations.
It is considered that customers judge products on a limited set of norms and
attributes. Olshavsky and Miller (1972) and Olson and Dover (1976) designed their
researches as to manipulate actual product performance, and their aim was to find
out how perceived performance ratings were influenced by expectations. These
studies took out the discussions about explaining the differences between
expectations and perceived performance."
The Disconfirmation Model

"The Disconfirmation Model is based on the comparison of customers’

[expectations] and their [perceived performance] ratings. Specifically, an

4
individual’s expectations are confirmed when a product performs as expected. It is
negatively confirmed when a product performs more poorly than expected. The
disconfirmation is positive when a product performs over the
expectations(Churchill & Suprenant 1982). There are four constructs to describe
the traditional disconfirmation paradigm mentioned as expectations, performance,
disconfirmation and satisfaction." "Satisfaction is considered as an outcome of
purchase and use, resulting from the buyers’ comparison of expected rewards and
incurred costs of the purchase in relation to the anticipated consequences. In
operation, satisfaction is somehow similar to attitude as it can be evaluated as the
sum of satisfactions with some features of product." "In the literature, cognitive
and affective models of satisfaction are also developed and considered as
alternatives(Pfaff, 1977). Churchill and Suprenant in 1982, evaluated various
studies in the literature and formed an overview of Disconfirmation process in the
following figure:"
Customer satisfaction measured
Organizations need to retain existing customers while targeting non-
customers. Measuring customer satisfaction provides an indication of how
successful the organization is at providing products and/or services to the
marketplace.
"Customer satisfaction is measured at the individual level, but it is almost always
reported at an aggregate level. It can be, and often is, measured along various
dimensions. A hotel, for example, might ask customers to rate their experience
with its front desk and check-in service, with the room, with the amenities in the
room, with the restaurants, and so on. Additionally, in a holistic sense, the hotel
might ask about overall satisfaction 'with your stay.'"
As research on consumption experiences grows, evidence suggests that consumers
purchase goods and services for a combination of two types of benefits: hedonic
and utilitarian. Hedonic benefits are associated with the sensory and experiential
attributes of the product. Utilitarian benefits of a product are associated with the
more instrumental and functional attributes of the product (Batra and Athola 1990).
Customer satisfaction is an ambiguous and abstract concept and the actual
manifestation of the state of satisfaction will vary from person to person and
product/service to product/service. The state of satisfaction depends on a number

5
of both psychological and physical variables which correlate with satisfaction
behaviors such as return and recommend rate. The level of satisfaction can also
vary depending on other options the customer may have and other products against
which the customer can compare the organization's products.
Work done by Parasuraman, Zeithaml and Berry (Leonard L) between 1985 and
1988 provides the basis for the measurement of customer satisfaction with a
service by using the gap between the customer's expectation of performance and
their perceived experience of performance. This provides the measurer with a
satisfaction "gap" which is objective and quantitative in nature. Work done by
Cronin and Taylor propose the "confirmation/disconfirmation" theory of
combining the "gap" described by Parasuraman, Zeithaml and Berry as two
different measures (perception and expectation of performance) into a single
measurement of performance according to expectation.
The usual measures of customer satisfaction involve a survey from software
providers such as Confirmit, Medallia andSatmetrix[8] with a set of statements
using a Likert Technique or scale. The customer is asked to evaluate each
statement and in term of their perception and expectation of performance of the
organization being measured. Their satisfaction is generally measured on a five-
point scale.

"Customer satisfaction data can also be collected on a 10-point scale." [1]

"Regardless of the scale used, the objective is to measure customers’ perceived
satisfaction with their experience of a firm’s offerings." It is essential for firms to
effectively manage customer satisfaction. To be able do this, we need accurate
measurement of satisfaction.
Good quality measures need to have high satisfaction loadings, good reliability,
and low error variances. In an empirical study comparing commonly used
satisfaction measures it was found that two multi-item semantic differential scales
performed best across both hedonic and utilitarian service consumption contexts.
According to studies by Wirtz & Lee (2003), they identified a six-item 7-

6
point semantic differential scale (for example, Oliver and Swan 1983), which is a
six-item 7-point bipolar scale, that consistently performed best across both hedonic
and utilitarian services. It loaded most highly on satisfaction, had the highest item
reliability, and had by far the lowest error variance across both studies. In the
study,[11]the six items asked respondents’ evaluation of their most recent experience
with ATM services and ice cream restaurant, along seven points within these six
items: “pleased me to displeased me”, “contented with to disgusted with”, “very
satisfied with to very dissatisfied with”, “did a good job for me to did a poor job
for me”, “wise choice to poor choice” and “happy with to unhappy with”.
A semantic differential (4 items) scale (e.g., Eroglu and Machleit 1990), [12] which
is a four-item 7-point bipolar scale, was the second best performing measure,
which was again consistent across both contexts. In the study, respondents were
asked to evaluate their experience with both products, along seven points within
these four items: “satisfied to dissatisfied”, “favorable to unfavorable”, “pleasant
to unpleasant” and “I like it very much to I didn’t like it at all”.
The third best scale was single-item percentage measure, a one-item 7-point
bipolar scale (e.g., Westbrook 1980). Again, the respondents were asked to
evaluate their experience on both ATM services and ice cream restaurants, along
seven points within “delighted to terrible”.
It seems that dependent on a trade-off between length of the questionnaire and
quality of satisfaction measure, these scales seem to be good options for measuring
customer satisfaction in academic and applied studies research alike. All other
measures tested consistently performed worse than the top three measures, and/or
their performance varied significantly across the two service contexts in their
study. These results suggest that more two wheelereful pretesting would be prudent
should these measures be used.
Finally, all measures captured both affective and cognitive aspects of satisfaction,
independent of their scale anchors. Affective measures capture a consumer’s
attitude (liking/disliking) towards a product, which can result from any product
information or experience. On the other hand, cognitive element is defined as an
appraisal or conclusion on how the product’s performance compared against
expectations (or exceeded or fell short of expectations), was useful (or not useful),

7
fit the situation (or did not fit), exceeded the requirements of the situation (or did
not exceed).

Methodologies
American Customer Satisfaction Index (ACSI) is a scientific standard of customer
satisfaction. Academic research has shown that the national ACSI score is a strong
predictor of Gross Domestic Product (GDP) growth, and an even stronger predictor
of Personal Consumption Expenditure (PCE) growth. On the microeconomic level,
academic studies have shown that ACSI data is related to a firm's financial
performance in terms of return on investment (ROI), sales, long-term firm value
(Tobin's q), cash flow, cash flow volatility, human
capital performance, portfolio returns, debt financing, risk, and consumer
spending. Increasing ACSI scores has been shown to predict loyalty, word-of-
mouth recommendations, and purchase behavior. The ACSI measures customer
satisfaction annually for more than 200 companies in 43 industries and 10
economic sectors. In addition to quarterly reports, the ACSI methodology can be
applied to private sector companies and government agencies in order to improve
loyalty and purchase intent.[19] ASCI scores have also been calculated by
independent researchers, for example, for the mobile phones sector, higher
education, and electronic mail.
The Kano model is a theory of product development and customer satisfaction
developed in the 1980s by Professor Noriaki Kano that classifies customer
preferences into five categories: Attractive, One-Dimensional, Must-Be,
Indifferent, Reverse. The Kano model offers some insight into the product
attributes which are perceived to be important to customers.
SERVQUAL or RATER is a service-quality framework that has been incorporated
into customer-satisfaction surveys (e.g., the revised Norwegian Customer
Satisfaction Barometer to indicate the gap between customer expectations and
experience.
J.D. Power and Associates provides another measure of customer satisfaction,
known for its top-box approach and automotive industry rankings. J.D. Power and
Associates' marketing research consists primarily of consumer surveys and is
publicly known for the value of its product awards.

8
Other research and consulting firms have customer satisfaction solutions as well.
These include A.T. Kearney's Customer Satisfaction Audit process, which
incorporates the Stages of Excellence framework and which helps define a
company’s status against eight critically identified dimensions.
For B2B customer satisfaction surveys, where there is a small customer base, a
high response rate to the survey is desirable. The American Customer Satisfaction
Index (2012) found that response rates for paper-based surveys were around 10%
and the response rates for e-surveys (web, wap and e-mail) were averaging
between 5% and 15% - which can only provide a straw poll of the customers'
opinions.
In the European Union member states, many methods for measuring impact and
satisfaction of e-government services are in use, which the eGovMoNet project
sought to compare and harmonize.
These customer satisfaction methodologies have not been independently audited by
the Marketing Accountability Standards Board (MASB) according to MMAP
(Marketing Metric Audit Protocol).

CONSUMER BEHAVIOR

Consumer behavior is the study of when, why, how, where and what people do or
do not buy products. It blends elements from psychology, sociology, social
psychology, anthropology and economics. It attempts to understand the buyer
decision making process, both individually and in groups. It studies characteristics
of individual consumers such as demographics and behavioural variables in an
attempt to understand people's wants. It also tries to assess influences on the
consumer from groups such as family, friends, reference groups, and society in
general. Customer behaviour study is based on consumer buying behaviour, with
the customer playing the three distinct roles of user, payer and buyer. Relationship
marketing is an influential asset for customer behaviour analysis as it has a keen
interest in the re-discovery of the true meaning of marketing through the re-
affirmation of the importance of the customer or buyer. A greater importance is

9
also placed on consumer retention, customer relationship management,
personalisation, customisation and one-to-one marketing. Social functions can be
categorized into social choice and welfare functions. Each method for vote
counting is assumed as a social function but if Arrow’s possibility theorem is used
for a social function, social welfare function is achieved. Some specifications of
the social functions are decisiveness, neutrality, anonymity, monotonocity,
unanimity, homogeneity and weak and strong Paretooptimality. No social choice
function meets these requirements in an ordinal scale simultaneously. The most
important characteristic of a social function is identification of the interactive
effect of alternatives and creating a logical relation with the ranks. Marketing
provides services in order to satisfy customers. With that in mind, the productive
system is considered from its beginning at the production level, to the end of the
cycle, the consumer (Kioumarsi et al., 2009).

Belch and Belch define consumer behavior as 'the process and activities people
engage in when searching for, selecting, purchasing, using, evaluating, and
disposing of products and services so as to satisfy their needs and desires'.

10
Black box model

ENVIRONMENTAL
BUYER'S BLACK BOX
FACTORS BUYER'S
Marketing Environmental Buyer Decision RESPONSE
Stimuli Stimuli Characteristics Process

Problem
recognition Product
Information choice
Attitudes
Product Economic search Brand choice
Motivation
Price Technical Alternative Dealer choice
Behaviour s
Place Political evaluation Purchase
Personality
Promotion Cultural Purchase timing
Lifestyle
decision Purchase
Post-purchase amount
behavior

The black box model shows the interaction of stimuli, consumer characteristics,
decision process and consumer responses. It can be distinguished between
interpersonal stimuli (between people) or intrapersonal stimuli (within people).
The black box model is related to the black box theory of behaviorism, where the
focus is not set on the processes inside a consumer, but the relation between the
stimuli and the response of the consumer. The marketing stimuli are planned and
processed by the companies, whereas the environmental stimulus are given by
social factors, based on the economical, political and cultural circumstances of a
society. The buyers black box contains the buyer characteristics and the decision
process, which determines the buyers response.

The black box model considers the buyers response as a result of a conscious,
rational decision process, in which it is assumed that the buyer has recognized the
problem. However, in reality many decisions are not made in awareness of a
determined problem by the consumer.

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Information search

Once the consumer has recognised a problem, they search for information on
products and services that can solve that problem. Belch and Belch (2007) explain
that consumers undertake both an internal (memory) and an external search.

Sources of information include:

 Personal sources
 Commercial sources
 Public sources
 Personal experience

The relevant internal psychological process that is associated with information

search is behaviour . Behaviour is defined as 'the process by which an individual
receives, selects, organises, and interprets information to create a meaningful
picture of the world'

The selective behaviour process

Stage Description

- Selective exposure consumers select which promotional messages they will

expose themselves to.
- Selective attention consumers select which promotional messages they will
pay attention to

- Selective comprehension consumer interpret messages in line with their

beliefs, attitudes, motives and experiences

- Selective retention consumers remember messages that are more meaningful

or important to them

The implications of this process help develop an effective promotional strategy,

and select which sources of information are more effective for the brand.

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 INFORMATION EVALUATION
At this time the consumer compares the brands and products that are in their
evoked set. How can the marketing organization increase the likelihood that their
brand is part of the consumer's evoked (consideration) set? Consumers evaluate
alternatives in terms of the functional and psychological benefits that they offer.
The marketing organization needs to understand what benefits consumers are
seeking and therefore which attributes are most important in terms of making a
decision.

Purchase decision

Once the alternatives have been evaluated, the consumer is ready to make a
purchase decision. Sometimes purchase intention does not result in an actual
purchase. The marketing organization must facilitate the consumer to act on their
purchase intention. The provision of credit or payment terms may encourage
purchase, or a sales promotion such as the opportunity to receive a premium or
enter a competition may provide an incentive to buy now. The relevant internal
psychological process that is associated with purchase decision is integration.

Postpurchase evaluation

The EKB model was further developed by Rice (1993) which suggested there
should be a feedback loop, Foxall (2005) further suggests the importance of the
post purchase evaluation and that the post purchase evaluation is key due to its
influences on future purchase patterns.

BUYING
Buying in has several meanings:

13
  In the securities market it refers to a process by which the buyer of
securities, whose seller fails to deliver the securities contracted for, can 'buy
in' the securities from a third party with the defaulting seller to make good.
 In poker it signifies the up-front payment required to participate in a given
game or tournament.
 In management and decision making, buy-in (as a verb or noun) signifies
the commitment of interested or affected parties to a decision (often called
stakeholders) to 'buy in' to the decision, that is, to agree to give it support,
often by having been involved in its formulation.

Securities market use

On the English stock exchange, a transaction by which, if a member has sold

securities which he fails to deliver on settling day, or any of the succeeding ten
days following the settlement, the buyer may give instructions to a stock exchange
official to "buy in" the stock required. The official announces the quantity of stock,
and the purpose for which he requires it, and whoever sells the stock must be
prepared to deliver it immediately. The original seller has to pay the difference
between the two prices, if the latter is higher than the original contract price. A
similar practice, termed "selling out," prevails when a purchaser fails to take up his
securities.

The practise is not limited to the UK Stock Exchange but is found in various forms
on most stock exchanges. The rules vary according to the local regulations, and the
party which fails to deliver is usually penalised and may even be suspended..

Alternatives to short selling available on the SGX :

1. Borrow the share and proceed to sell a stock.

2. Buy a put warrant
3. Short a CFD.
4. Sell a Single Stock Future (SSF) in the futures market.

Poker and gaming

14
"Buying in" regarding poker tournaments is the process of entering a poker
tournament that requires an up-front payment. The size of the payment, otherwise
known as the "Buy In", determines the total winning prize pool and also contains a
fee, otherwise known as the rake, that is paid to the house.

For example a 50 person capacity tournament could cost $55 to enter per player. In
poker terms this could equate to $50+5, meaning $50 goes to the prize pool to pay
the eventual winners and $5 (10%) goes to the house for hosting the tournament. In
this example the prize pool would contain $2500 and the house would take a total
of $250 (also 10%).

Management

The process of lobbying for support for part of the influential group before
suggesting an idea, arguing a case or submitting a report.

In the sports world, buying in is a significant aspect of players/participants

accepting goals and direction from a coach, leader or program. "Buying in"
becomes synonymous with commitment and dedication. In the Spring of 2007, two
film makers, Tim Breitbach(Dopamine) and Ralph Barhydt, started producing a
film entitled, "Buying In" that explores the social issues of buying in based on the
success of the boys' and girls' high school basketball teams at The Branson School,
in Ross, California, who each won the State Championship in their division in
2007.

15
LITERATURE REVIEW

16
 LITERATURE REVIEW
Customer Satisfaction – Definitions

Satisfaction has been broadly defined by Vavra, T.G. (1997) as a satisfactory

post-purchase experience with a product or service given an existing purchase
expectation. Howard and Sheth (1969)
According to Westbrook and Reilly (1983) define satisfaction as, “The buyer’s
cognitive state of being adequately or inadequately rewarded for the sacrifices
he has undergone” (p.145). 6, customer satisfaction is “an emotional response
to the experiences provided by, associated with particular Customer Satisfaction
Satisfaction has been broadly defined by Vavra, T.G. (1997) as a satisfactory
post-purchase experience with a product or service given an existing purchase
expectation. Howard and Sheth (1969)
According to Westbrook and Reilly (1983) define satisfaction as, “The buyer’s
cognitive state of being adequately or inadequately rewarded for the sacrifices
he has undergone” (p.145). 6,
customer satisfaction is “an emotional response to the experiences provided by,
associated with particular purchase expectations with perceptions of
performance during and after the consumption experience.13 Oliver (1981)14
defines customer satisfaction as a customer’s emotional response to the use of a
product or service. Anton (1996)15 offers more elaboration: “customer
satisfaction as a state of mind in which the customer’s needs, wants and
expectations throughout the product or service life have been met or exceeded,
resulting in subsequent repurchase and loyalty”. Merchant Account Glossary
points out that, “Customer satisfaction is an ambiguous and abstract concept
and the actual manifestation of the state of satisfaction will very from person to
person and produce/service to produce/service.....”16Schiffman and Kanuk
(2004) 17 Woodruff and Gardian (1996)
defines customer satisfaction as “The individual’s perception of the
performance of the product or service in relation to his or her expectations”.
According to Hung (1977), “…. satisfaction is a kind of stepping away from an
experience and evaluating it … One could have a pleasurable experience that
caused dissatisfaction because even though it was pleasurable, it wasn’t as
pleasurable as it was supposed to be. So satisfaction / dissatisfaction isn’t an

17
 emotion, it’s the evaluation of the emotion”. define “Satisfaction, then, is the
evaluation or feeling that results from the disconfirmation process. It is not the
comparison itself (i.e., the disconfirmation process), but it is the customer’s
response to the comparison. Satisfaction has an emotional component.”
Consumer behaviour

Cognitive theories of behaviour assume there is a poverty of stimulus. This (with

reference to behaviour ) is the claim that sensations are, by themselves, unable to
provide a unique description of the world. Sensations require 'enriching', which is
the role of the mental model. A different type of theory is the
perceptual ecology approach of James J. Gibson. Gibson rejected the assumption
of a poverty of stimulus by rejecting the notion that behaviour is based upon
sensations – instead, he investigated what information is actually presented to the
perceptual systems. His theory "assumes the existence of stable, unbounded, and
permanent stimulus-information in the ambient optic array. And it supposes that
the visual system can explore and detect this information. The theory is
information-based, not sensation-based." He and the psychologists who work
within this paradigm detailed how the world could be specified to a mobile,
exploring organism via the lawful projection of information about the world into
energy arrays. Specification is a 1:1 mapping of some aspect of the world into a
perceptual array; given such a mapping, no enrichment is required and behaviour
is direct behaviour .
Behaviour -in-action

An ecological understanding of behaviour derived from Gibson's early work is

that of "behaviour -in-action", the notion that behaviour is a requisite property of
animate action; that without behaviour , action would be unguided, and without
action, behaviour would serve no purpose. Animate actions require both behaviour
and motion, and behaviour and movement can be described as "two sides of the
same coin, the coin is action". Gibson works from the assumption that singular
entities, which he calls "invariants", already exist in the real world and that all that
the behaviour process does is to home in upon them. A view known
as constructivism (held by such philosophers as Ernst von Glasersfeld) regards the
continual adjustment of behaviour and action to the external input as precisely
what constitutes the "entity", which is therefore far from being invariant.

18
Glasersfeld considers an "invariant" as a target to be homed in upon, and a
pragmatic necessity to allow an initial measure of understanding to be established
prior to the updating that a statement aims to achieve. The invariant does not and
need not represent an actuality, and Glasersfeld describes it as extremely unlikely
that what is desired or feared by an organism will never suffer change as time goes
on. This social constructionist theory thus allows for a needful evolutionary
adjustment.
A mathematical theory of behaviour -in-action has been devised and investigated
in many forms of controlled movement, and has been described in many different
species of organism using the General Tau Theory. According to this theory, tau
information, or time-to-goal information is the fundamental 'percept' in behaviour .
Evolutionary psychology (EP) and behaviour

Many philosophers, such as Jerry Fodor, write that the purpose of behaviour is
knowledge, but evolutionary psychologists hold that its primary purpose is to guide
action. For example, they say, depth behaviour seems to have evolved not to help
us know the distances to other objects but rather to help us move around in space.
[44]
Evolutionary psychologists say that animals from fiddler crabs to humans use
eyesight for collision avoidance, suggesting that vision is basically for directing
action, not providing knowledge.
Building and maintaining sense organs is metabolically expensive, so these organs
evolve only when they improve an organism's fitness. More than half the brain is
devoted to processing sensory information, and the brain itself consumes roughly
one-fourth of one's metabolic resources, so the senses must provide exceptional
benefits to fitness. Behaviour accurately mirrors the world; animals get useful,
accurate information through their senses.
Scientists who study behaviour and sensation have long understood the human
senses as adaptations. Depth behaviour consists of processing over half a dozen
visual cues, each of which is based on a regularity of the physical world. Vision
evolved to respond to the narrow range of electromagnetic energy that is plentiful
and that does not pass through objects.[44] Sound waves provide useful information
about the sources of and distances to objects, with larger animals making and
hearing lower-frequency sounds and smaller animals making and hearing higher-
frequency sounds.[44]Taste and smell respond to chemicals in the environment that

19
were significant for fitness in the environment of evolutionary adaptedness. The
sense of touch is actually many senses, including pressure, heat, cold, tickle, and
pain. Pain, while unpleasant, is adaptive. An important adaptation for senses is
range shifting, by which the organism becomes temporarily more or less sensitive
to sensation. For example, one's eyes automatically adjust to dim or bright ambient
light. Sensory abilities of different organisms often coevolve, as is the case with
the hearing of echolocating bats and that of the moths that have evolved to respond
to the sounds that the bats make.
Evolutionary psychologists claim that behaviour demonstrates the principle of
modularity, with specialized mechanisms handling particular behaviour tasks.
[44]
For example, people with damage to a particular part of the brain suffer from
the specific defect of not being able to recognize faces (prospagnosia). EP suggests
that this indicates a so-called face-reading module.
Theories of visual behaviour

 Empirical theories of behaviour

 Enactivism
 Anne Treisman's feature integration theory
 Interactive activation and competition
 Irving Biederman's recognition by components theory

Physiology
Sensory system
A sensory system is a part of the nervous system responsible for
processing sensory information. A sensory system consists of sensory
receptors, neural pathways, and parts of the brain involved in sensory behaviour .
Commonly recognized sensory systems are those for vision, hearing, somatic
sensation (touch), taste and olfaction (smell). It has been suggested that the
immune system is an overlooked sensory modality. In short, senses
are transducers from the physical world to the realm of the mind.
The receptive field is the specific part of the world to which a receptor organ and
receptor cells respond. For instance, the part of the world an eye can see, is its
receptive field; the light that each rod or cone can see, is its receptive field.

20
Receptive fields have been identified for the visual system, auditory
system and somatosensory system, so far.
Consumer behaviour is a field of study that focuses on consumer activities. This
has been a topic of vast interest for the marketers all over the world. The marketing
managers always study these consumer behavioural changes and make continuous
changes in products and services. According to Blackwell et al. (2006), consumer
behaviour is defined as the activities that people undertake when obtaining,
consuming and disposing of products and services that they expect will satisfy
their personal needs. Blackwell et al. (2006) mentions that a customer follows a
sequence before buying a product or service.
consumer behaviour has become a factor that has a direct impact on the overall
performance of the businesses (Kotler and Keller, 2012)

consumer behaviour has become crucial especially due to fierce competition in

retail industry in the worldwide (Lancaster et al, 2002) consumer behaviour
addressing the works of marketers. Moreover, consumer decision making process,
in particular, five stages of consumer decision making process will be discussed in
detail.

21
INDUSTRY PROFILE

22
 INDUSTRY PROFILE
Soft drink

A glass of cola served with ice cubes

A soft drink (see terminology for other names) is a drink that typically
contains carbonated water, a sweetener, and a natural or artificialflavoring. The
sweetener may be sugar, high-fructose corn syrup, fruit juice, sugar substitutes (in
the case of diet drinks), or some combination of these. Soft drinks may also
contain caffeine, colorings, preservatives, and other ingredients.
Soft drinks are called "soft" in contrast to "hard drinks" (alcoholic beverages).
Small amounts of alcohol may be present in a soft drink, but the alcohol
content must be less than 0.5% of the total volume [1][2] if the drink is to be
considered non-alcoholic. Fruit punch, tea, and other such non-alcoholic beverages
are technically soft drinks by this definition but are not generally referred to as
such.
Soft drinks may be served chilled, over ice cubes or at room temperature. In rare
cases, some soft drinks, such as Dr Pepper, can be served warm.[4] Soft drinks are
available in many formats, including cans, glass bottles, and plastic bottles (the
latter in a variety of sizes ranging from small bottles to large 2-liter containers).
Soft drinks are also widely available at fast food restaurants, movie
theaters,convenience stores, casual dining restaurants, dedicated soda stores,
and bars from soda fountain machines. Soda fountain drinks are typically served in

23
paper or plastic disposable cups in the first three venues. In casual dining
restaurants and bars, soft drinks are often served in glasses. Soft drinks may be
drunk with straws or sipped directly from the cups.
Soft drinks are mixed with other ingredients in several contexts. In Western
countries, in bars and other places where alcohol is served (e.g., airplanes,
restaurants and nightclubs) many mixed drinks are made by blending a soft drink
with hard liquor and serving the drink over ice. One well-known example is
the rum and coke, which may also contain lime juice. Some homemade fruit
punch recipes, which may or may not contain alcohol, contain a mixture of
various fruit juices and soda pop (e.g., ginger ale). At ice cream parlours and
1950s-themed diners, ice cream floats are often sold. Two popular ice cream floats
are the coke float and the root beer float, which consist of a scoop of ice cream
placed in a tall glass of the respectively named soft drinks.

Terminology
Names for soft drinks in the United States
While the term "soft drink" is commonly used in product labeling and on Tim
Hortons menus, in many countries these drinks are more commonly referred to by
regional names, including carbonated beverage, coke, fizzy drink, fizzy juice, cool
drink, cold drink, lolly water, pop, seltzer, soda, soda pop, tonic, and mineral. Due
to the high sugar content in typical soft drinks, they may also be called sugary
drinks. In Spanish, they often use the English equivalent of 'refreshment', or
(given its carbonated content) also commonly called gaseosa, from agua
gaseosa (literally "fizzy water").
In the United States, the 2003 Harvard Dialect Survey tracked the usage of the nine
most common names. Over half of the survey respondents preferred the term
"soda", which was dominant in the Northeastern United States, California, and the
areas surrounding Milwaukee and St. Louis. The term "pop", which was preferred
by 25% of the respondents, was most popular in the Midwest and Pacific
Northwest, while the genericized trademark "coke", used by 12% of the
respondents, was most popular in the Southern United States. The term "tonic"
is hyperlocal to eastern Massachusetts, although usage is declining.
In the English-speaking parts of Canada, the term "pop" is prevalent, but "soft
drink" is the most common English term used in Montreal.[8]

24
In the United Kingdom and Ireland, the terms "fizzy drink" and the genericized
trademark "coke" are common. "Pop" and "fizzy pop" are used in northern
England, while "mineral" is used in Ireland. In Australia and New Zealand, "Fizzy
Drink" or "soft drink" is typically used. In South African English, "cool drink" and
"cold drink" are used, but in Indian English "cool drink" is most prevalent. In
Spanish, they often use the English equivalent of 'refreshment'.

History
The origins of soft drinks lie in the development of fruit-flavored drinks. In Tudor
England 'water imperial' was widely drunk; it was a sweetened drink with lemon
flavor and containing cream of tartar. 'Manays Cryste' was a sweetened cordial
flavored with rosewater, violets or cinnamon.[12]
Another early type of soft drink was lemonade, made of water and lemon juice
sweetened with honey, but without carbonated water. The Compagnie des
Limonadiers of Paris was granted a monopoly for the sale of lemonade soft drinks
in 1676. Vendors carried tanks of lemonade on their backs and dispensed cups of
the soft drink to Parisians.
Carbonated drinks

Equipment used by Joseph Priestley in his experiments on gases and the

carbonation of water
In the late 18th century, scientists made important progress in replicating naturally
carbonated mineral waters. In 1767, Englishman Joseph Priestley first discovered a

25
method of infusing water with carbon dioxide to make carbonated water when he
suspended a bowl of distilled water above a beer vat at a local brewery in Leeds,
England. His invention of carbonated water (also known as soda water) is the
major and defining component of most soft drinks.
Priestley found that water treated in this manner had a pleasant taste, and he
offered it to his friends as a refreshing drink. In 1772, Priestley published a paper
entitled Impregnating Water with Fixed Air in which he describes dripping oil of
vitriol (or sulfuric acid as it is now called) onto chalk to produce carbon dioxide
gas, and encouraging the gas to dissolve into an agitated bowl of water.
Another Englishman, John Mervin Nooth, improved Priestley's design and sold his
apparatus for commercial use in pharmacies. Swedish chemist Torbern
Bergman invented a generating apparatus that made carbonated water from chalk
by the use of sulfuric acid. Bergman's apparatus allowed imitation mineral water to
be produced in large amounts. Swedish chemist Jöns Jacob Berzelius started to add
flavors (spices, juices, and wine) to carbonated water in the late eighteenth century.
Thomas Henry, an apothecary from Manchester, was the first to sell artificial
mineral water to the general public for medicinal purposes, beginning in the 1770s.
His recipe for 'Bewley's Mephitic Julep' consisted of 3 drachms of fossil alkali to
a quart of water, and the manufacture had to 'throw in streams of fixed air until all
the alkaline taste is destroyed'. Johann Jacob Schweppe developed a similar
process to manufacture carbonated mineral water at the same time. He founded the
Schweppes Company in Geneva in 1783 to sellcarbonated water, and relocated his
business to London in 1792. His drink soon gained in popularity; among his new
found patrons was Erasmus Darwin. In 1843, Schweppes commercialised Malvern
Water at the Holywell Spring in the Malvern Hills, and was appointed the official
supplier to the Royal Family.
It was not long before flavoring was combined with carbonated water. The earliest
reference to carbonated ginger beer is in a Practical Treatise on Brewing. published
in 1809. The drinking of either natural or artificial mineral water was considered at
the time to be a healthy practice, and was promoted by advocates of temperance.
Pharmacists selling mineral waters began to add herbs and chemicals to unflavored
mineral water. They used birch bark (see birch beer), dandelion, sarsaparilla, fruit
extracts, and other substances. Flavorings were also added to improve the taste.

26
Mass market and industrialization

An 1883 advertisement forSchweppes Mineral-Waters

Soft drinks soon outgrew their origins in the medical world and became a widely
consumed beverage, available cheaply for the masses. By the 1840s there were
more than fifty soft drink manufacturers – an increase from just ten in the previous
decade. For the Great Exhibitionof 1851, Schweppes was designated the official
drink supplier and sold over a million bottles of lemonade, ginger beer, Seltzer
water and soda-water. There was a Schweppes soda water fountain, situated
directly at the entrance to the exhibition.
Mixer drinks became popular in the second half of the century. Tonic water was
originally quinine added to water as a prophylactic againstmalaria and was
consumed by British officials stationed in the tropical areas of South
Asia and Africa. As the quinine powder was so bitter people began mixing the
powder with soda and sugar, and a basic tonic water was created. The first
commercial tonic water was produced in 1858. The mixed drink gin and tonic also
originated in British colonial India, when the British population would mix their
medicinal quinine tonic with gin.

27
The Codd-neck bottle provided an effective seal for soft drinks in the late 19th
century
A persistent problem in the soft drinks industry was the lack of an effective sealing
of the bottles. Carbonated drink bottles are under great pressure from the gas, so
inventors tried to find the best way to prevent the carbon dioxide or bubbles from
escaping. The bottles could also explode if the pressure was too great. Hiram
Codd devised a patented bottling machine while working at a small mineral water
works in the Caledonian Road, Islington, in London in 1870. His Codd-neck
bottle was designed to enclose a marble and a rubber washer in the neck. The
bottles were filled upside down, and pressure of the gas in the bottle forced the
marble against the washer, sealing in the carbonation. The bottle was pinched into
a special shape to provide a chamber into which the marble was pushed to open the
bottle. This prevented the marble from blocking the neck as the drink was poured.
By mid-1873 he had granted 20 licences and received a further 50 applications.
This was boosted further by a Trade Show held in London in the same year. By
1874 the licence was free to bottle manufacturers as long as they purchased the
marbles, sealing rings and used his groove tool, and the mineral water firms they
traded with had already bought a licence to use his bottle.
In 1892, the "Crown Cork Bottle Seal" was patented by William Painter, a
Baltimore, Maryland machine shop operator. It was the first bottle top to
successfully keep the bubbles in the bottle. In 1899, the first patent was issued for
a glass-blowing machine for the automatic production of glass bottles. Earlier glass
bottles had all been hand-blown. Four years later, the new bottle-blowing machine
was in operation. It was first operated by the inventor, Michael Owens, an

28
employee of Libby Glass Company. Within a few years, glass bottle production
increased from 1,400 bottles a day to about 58,000 bottles a day.
In America, soda fountains were initially more popular, and many Americans
would frequent the soda fountain daily. Beginning in 1806, Yale
University chemistry professorBenjamin Silliman sold soda waters in New Haven,
Connecticut. He used a Nooth apparatus to produce his waters. Businessmen in
Philadelphia and New York City also began selling soda water in the early 19th
century. In the 1830s, John Matthews of New York City and John Lippincott of
Philadelphia began manufacturing soda fountains. Both men were successful and
built large factories for fabricating fountains. Due to problems in the U.S. glass
industry, bottled drinks remained a small portion of the market throughout much of
the 19th century. (However, they were known in England. In The Tenant of
Wildfell Hall, published in 1848, the caddish Huntingdon, recovering from months
of debauchery, wakes at noon and gulps a bottle of soda-water.
In the early 20th century, sales of bottled soda increased exponentially, and in the
second half of the 20th century, canned soft drinks became an important share of
the market.
During the 1920s, "Home-Paks" were invented. "Home-Paks" are the familiar six-
pack cartons made from cardboard. Vending machines also began to appear in the
1920s. Since then, soft drink vending machines have become increasingly popular.
Both hot and cold drinks are sold in these self-service machines throughout the
world.

Production

29
A jug of bottler's flavor for 7-Up. The syrup-like concentrate lacks sugar and is
sold to franchisees to refill.
Soft drinks are made by mixing dry or fresh ingredients with water. Production of
soft drinks can be done at factories or at home. Soft drinks can be made at home by
mixing a syrup or dry ingredients with carbonated water, or by lacto-fermentation.
Syrups are commercially sold by companies such as Soda-Club; dry ingredients are
often sold in pouches, in a style of the popular U.S. drink mix Kool-Aid.
Carbonated water is made using a soda siphon or a home carbonation system or by
dropping dry ice into water.
Drinks like ginger ale and root beer are often brewed using yeast to cause
carbonation.
Of most importance is that the ingredient meets the agreed specification on all
major parameters. This is not only the functional parameter (in other words, the
level of the major constituent), but the level of impurities, the microbiological
status, and physical parameters such as color, particle size, etc.
Some soft drinks contain measurable amounts of alcohol. In some older
preparations, this resulted from natural fermentation used to build the carbonation.
In the United States, soft drinks (as well as other beverages such as non-alcoholic
beer) are allowed by law to contain up to 0.5% alcohol by volume. Modern drinks
introduce carbon dioxide for carbonation, but there is some speculation that
alcohol might result from fermentation of sugars in a non-sterile environment. A

30
small amount of alcohol is introduced in some soft drinks where alcohol is used in
the preparation of the flavoring extracts such as vanilla extract.

Producers
Further information: List of soft drink producers
In every area of the world there are major soft drink producers. However a few
major North American companies are present in most of the countries of the world,
such as Pepsiand Coca Cola. Major North American producers other than the two
previously-named companies include Cott, Dr. Pepper Snapple Group, and Jones
Soda.

Health concerns

A woman drinks from a Double Big Gulp, which holds 64 ounces (1.9 liters)
The over-consumption of sugar-sweetened soft drinks is associated
with obesity, type 2 diabetes, dental caries, and low nutrient levels. Experimental
studies tend to support a causal role for sugar-sweetened soft drinks in these
ailments, though this is challenged by other researchers. "Sugar-sweetened"
includes drinks that use high-fructose corn syrup, as well as those using sucrose.
Many soft drinks contain ingredients that are themselves sources of
concern: caffeine is linked to anxiety and sleep disruption when consumed in
excess, and some critics question the health effects of added sugars and artificial
sweeteners. Sodium benzoate has been investigated by researchers at University of
Sheffield as a possible cause of DNA damage and hyperactivity. Other substances
have negative health effects, but are present in such small quantities that they are
unlikely to pose any substantial health risk provided that the beverages are
consumed only in moderation.

31
In 1998, the Center for Science in the Public Interest published a report
titled Liquid Candy: How Soft Drinks are Harming Americans' Health. The report
examined statistics relating to the increase in soft drink consumption and claimed
that consumption is "likely contributing to health problems". It also criticized
marketing efforts by soft drink companies.
Obesity and weight-related diseases[edit]
From 1977 to 2002, Americans doubled their consumption of sweetened beverages
—a trend that was paralleled by doubling the prevalence of obesity. The
consumption of sugar-sweetened beverages is associated with weight and obesity,
and changes in consumption can help predict changes in weight.
It remains possible that the correlation is due to a third factor: people who lead
unhealthy lifestyles might consume more soft drinks. If so, then the association
between soft drink consumption and weight gain could reflect the consequences of
an unhealthy lifestyle rather than the consequences of consuming soft drinks.
Experimental evidence is needed to definitively establish the causal role of soft
drink consumption. Reviews of the experimental evidence suggest that soft drink
consumption does cause weight gain, but the effect is often small except for
overweight individuals.
Many of these experiments examined the influence of sugar-sweetened soft drinks
on weight gain in children and adolescents. In one experiment, adolescents
replaced sugar-sweetened soft drinks in their diet with artificially sweetened soft
drinks that were sent to their homes over 25 weeks. [36] Compared with children in a
control group, children who received the artificially sweetened drinks saw a
smaller increase in their BMI (by −0.14 kg/m2), but this effect was only
statistically significant among the heaviest children (who saw a benefit of
−0.75 kg/m2). In another study, an educational program encouraged schoolchildren
to consume fewer soft drinks.[37] During the school year, the prevalence of obesity
decreased among children in the program by 0.2%, compared to a 7.5% increase
among children in the control group. Another study, published in Pediatrics in
2013, concluded that for children from the age of 2 to 5, their risk of obesity
increased by 43% if they were regular soft drink consumers as opposed to those
who rarely or never consumed them.

32
Sugar-sweetened drinks have also been speculated to cause weight gain in adults.
In one study, overweight individuals consumed a daily supplement of sucrose-
sweetened or artificially sweetened drinks or foods for a 10-week period. Most of
the supplement was in the form of soft drinks. Individuals in the sucrose group
gained 1.6 kg, and individuals in the artificial-sweetener group lost 1.0 kg. A two-
week study had participants supplement their diet with sugar-sweetened soft
drinks, artificially sweetened soft drinks, or neither. [41] Although the participants
gained the most weight when consuming the sugar-sweetened drinks, some of the
differences were unreliable: the differences between men who consumed sugar-
sweetened drinks or no drinks was not statistically significant.
Other research suggests that soft drinks could play a special role in weight gain.
One four-week experiment compared a 450 calorie/day supplement of sugar-
sweetened soft drinks to a 450 calorie/day supplement of jelly beans.[42] The jelly
bean supplement did not lead to weight gain, but the soft drink supplement did.
The likely reason for the difference in weight gain is that people who consumed
the jelly beans lowered their caloric intake at subsequent meals, while people who
consumed soft drinks did not. Thus, the low levels of satiety provided by sugar-
sweetened soft drinks may explain their association with obesity. That is, people
who consume calories in sugar-sweetened beverages may fail to adequately reduce
their intake of calories from other sources. Indeed, people consume more total
calories in meals and on days when they are given sugar-sweetened beverages than
when they are given artificially sweetened beverages [41][43][44] or water. However,
these results are contradicted by a study by Adam Drewnowski published in 2004,
in which "32 subjects consumed a 300-calorie snack of fat-free raspberry cookies
or regular cola on two occasions each – either two hours ("early") or 20 minutes
("late") before lunch." It found that "...the calories eaten at lunch were not affected
by whether the snack was cookies or cola."
The consumption of sugar-sweetened soft drinks can also be associated with many
weight-related diseases, including diabetes, metabolic syndrome and
cardiovascular risk factors, and elevated blood pressure.
According to research presented at the American Heart Association's
Epidemiology and Prevention/Nutrition, Physical Activity and Metabolism 2013
Scientific Sessions by researchers at the Harvard School of Public Health, sugar-
sweetened beverages may be responsible for 180,000 deaths every year worldwide.

33
Dental decay

Soft drinks displayed on grocery store shelves.

Most soft drinks contain high concentrations of
simple carbohydrates: glucose, fructose, sucrose and other simple sugars. If oral
bacteria ferment carbohydrates and produce acids that may dissolve tooth enamel
and induce dental decay, then sweetened drinks may increase the risk of dental
caries. The risk would be greater if the frequency of consumption is high.
A large number of soda pops are acidic as are many fruits, sauces and other foods.
Drinking acidic drinks over a long period and continuous sipping may erode the
tooth enamel. A 2007 study determined that some flavored sparkling waters are as
erosive or more so than orange juice.
Using a drinking straw is often advised by dentists as the drink does not come into
as much contact with the teeth. It has also been suggested that brushing teeth right
after drinking soft drinks should be avoided as this can result in additional erosion
to the teeth due to the presence of acid.
Hypokalemia
There have been a handful of published reports describing individuals with
severe hypokalemia (low potassium levels) related to chronic extreme consumption
(4–10 L/day) of colas.[51]For example, a case study on the topic indicated that the
excessive consumption of colas causes the hypokalemia due to high fructose which
would result in diarrhea. Also, symptoms like muscle weakness and cramping can
be a result of hypokalemia. Furthermore, Hypokalemia can lower the arrhythmia
threshold and may increase the risk of sudden death.
Soft drinks related to bone density and bone loss

34
In a meta-analysis of 88 studies, drinking soda correlates with a decrease
in milk consumption along with the vitamin D, vitamin B6, vitamin B12, calcium,
protein and othermicronutrients. Phosphorus, a micronutrient, can be found in cola-
type beverages, but there may be a risk in consuming too much. Phosphorus and
calcium are used in the body to create calcium-phosphate, which is the main
component of bone. However, the combination of too much phosphorus with too
little calcium in the body can lead to a degeneration of bone mass. Research
suggests a statistically significant inverse relationship between consumption of
carbonated beverages and bone mineral density in young girls, which places them
at increased risk of fractures.
One hypothesis to explain this relationship is that the phosphoric acid contained in
some soft drinks (colas) displaces calcium from the bones, lowering bone density
of the skeleton and leading to weakened bones, or osteoporosis. However, 2001
calcium metabolism studies by Dr. Robert Heaney suggested that the net effect of
carbonated soft drinks, (including colas, which use phosphoric acid as the
acidulant) on calcium excretion in urine was negligible. Heaney concluded that
carbonated soft drinks, which do not contain the nutrients needed for bone health,
may displace other foods which do, and that the real issue is that people who drink
a lot of soft drinks also tend to have an overall diet that is low in calcium.
A 2006 study of several thousand men and women, found that women who
regularly drank cola-based sodas (three or more a day) had significantly lower
bone mineral density (BMD) of ~4 % in the hip than those who didn't, even though
researchers controlled for important factors like calcium and vitamin D intake. The
study also found that women who drank non-cola soft drinks didn't appear to have
lower BMD and that BMD of women drinking decaffeineted cola wasn't as low as
women drinking caffeinated cola sodas. The study found that the effect of regular
consumption of cola sodas was not significant on men's BMD.
In the 1950s and 1960s there were attempts in France and Japan to ban the sale of
Coca-Cola as dangerous since phosphates can block calcium absorption. However,
these were unsuccessful as the amounts of phosphate were shown to be too small
to have a significant effect.
Sugar content
Diet drink

35
The USDA's recommended daily intake (RDI) of added sugars is less than 10
teaspoons per day for a 2,000-calorie diet. High caloric intake contributes
to obesity if not balanced with exercise, with a large amount of exercise being
required to offset even small but calorie-rich food and drinks.
Until 1985, most of the calories in soft drinks came from sugar or corn syrup. As
of 2010, in the United States high-fructose corn syrup (HFCS) is used nearly
exclusively as a sweetener because of its lower cost, while in
Europe, sucrose dominates, because EU agricultural policies favor production
of sugar beets in Europe proper and sugarcane in the former colonies over the
production of corn. HFCS has been criticizedas having a number of detrimental
effects on human health, such as promoting diabetes, hyperactivity, hypertension,
and a host of other problems. Although anecdotal evidence has been presented to
support such claims, it is well known that the human body breaks sucrose down
into glucose and fructose before it is absorbed by the intestines. Simple sugars such
as fructose are converted into the same intermediates as in glucose metabolism.
However, metabolism of fructose is extremely rapid and is initiated
by fructokinase. Fructokinase activity is not regulated by metabolism or hormones
and proceeds rapidly after intake of fructose. While the intermediates of fructose
metabolism are similar to those of glucose, the rates of formation are excessive.
This fact promotes fatty acidand triglyceride synthesis in the liver, leading to
accumulation of fat throughout the body and possibly non-alcoholic fatty liver
disease. Increased blood lipid levels also seem to follow fructose ingestion over
time. A sugar drink or high-sugar drink may refer to any beverage consisting
primarily of water and sugar (often cane sugar or high-fructose corn syrup),
including some soft drinks, some fruit juices, and energy drinks.

36
Benzene
Benzene in soft drinks
In 2006, the United Kingdom Food Standards Agency published the results of its
survey of benzene levels in soft drinks, which tested 150 products and found that
four contained benzene levels above the World Health Organization (WHO)
guidelines for drinking water.
The United States Food and Drug Administration released its own test results of
several soft drinks containing benzoates and ascorbic or erythorbic acid. Five
tested drinks contained benzene levels above the Environmental Protection
Agency's recommended standard of 5 ppb. The Environmental Working Group has
uncovered additional FDA test results that showed the following results: Of 24
samples of diet soda tested between 1995 and 2001 for the presence of benzene, 19
(79%) had amounts of benzene in excess of the federal tap water standard of 5 ppb.
Average benzene levels were 19 ppb, about four times tap water standard. One
sample contained 55 ppb of benzene, 11 fold tap water standards. Despite these
findings, as of 2006, the FDA stated its belief that "the levels of benzene found in
soft drinks and other beverages to date do not pose a safety concern for consumers"

37
Pesticides in India
In 2003, the Delhi non-profit Centre for Science and Environment published a
disputed report finding pesticide levels in Coke and Pepsi soft drinks sold in India
at levels 30 times that considered safe by the European Economic
Commission. This was found in primarily 12 cold drink brands sold in and
around New Delhi. The Indian Health Minister said the CSE tests were inaccurate,
and said that the government's tests found pesticide levels within India's standards
but above EU standards.
A similar CSE report in August 2006 prompted many state governments to have
issued a ban of the sale of soft drinks in schools. Kerala issued a complete ban on
the sale or manufacture of soft drinks altogether. (These were later struck down in
court.) In return, the soft drink companies like Coca-Cola and Pepsi have issued
ads in the media regarding the safety of consumption of the drinks.
The UK-based Central Science Laboratory, commissioned by Coke, found its
products met EU standards in 2006. Coke and the University of
Michigan commissioned an independent study of its bottling plants by The Energy
and Resources Institute (TERI), which reported in 2008 no unsafe chemicals in the
water supply used.
Kidney stones
A study published in the Clinical Journal of the American Society of
Nephrology in 2013 concluded that consumption of soft drinks was associated with
a 23% higher risk of developing kidney stones.

Government regulation
Schools
In recent years, debate on whether high-calorie soft drink vending machines should
be allowed in schools has been on the rise. Opponents of the (soft drink) vending
machines believe that soft drinks are a significant contributor to childhood
obesity and tooth decay, and that allowing soft drink sales in schools encourages
children to believe they are safe to consume in moderate to large
quantities. Opponents argue that schools have a responsibility to look after the
health of the children in their care, and that allowing children easy access to soft
drinks violates that responsibility.[78] Vending machine proponents believe that

38
obesity is a complex issue and soft drinks are not the only cause. They also note
the immense amount of funding that soft drink sales bring to schools. Some
people take a more moderate stance, saying that soft drink machines should be
allowed in schools, but that they should not be the only option available. They
propose that when soft drink vending machines are made available on school
grounds, the schools should be required to provide children with a choice of
alternative drinks (such as fruit juice, flavored water and milk) at a comparable
price. Some lawmakers debating the issue in different states have argued that
parents—not the government—should be responsible for children's beverage
choices.
On May 3, 2006, the Alliance for a Healthier Generation, Cadbury
Schweppes, The Coca-Cola Company, PepsiCo, and the American Beverage
Association announced new guidelines that will voluntarily remove high-calorie
soft drinks from all U.S. schools.
On 19 May 2006, the British education secretary, Alan Johnson, announced new
minimum nutrition standards for school food. Among a wide range of measures,
from September 2006, school lunches will be free from carbonated drinks. Schools
will also end the sale of junk food (including carbonated drinks) in vending
machines and tuck shops.
In 2008, Samantha K Graff published an article in the Annals of the American
Academy of Political and Social Science regarding the "First Amendment
Implications of Restricting Food and Beverages Marketing in Schools". The article
examines a school district's policy regarding limiting the sale and marketing of
soda in public schools, and how certain policies can invoke a violation of the First
Amendment. Due to district budget cuts and loss in state funding, many school
districts allow commercial businesses to market and advertise their product
(including junk food and soda) to public school students for additional revenue.
Junk food and soda companies have acquired exclusive rights to vending machines
throughout many public school campuses. Opponents of corporate marketing and
advertising on school grounds urge school officials to restrict or limit a
corporation's power to promote, market, and sell their product to school students.
In the 1970s, the Supreme Court ruled that advertising was not a form of free
expression, but a form ofbusiness practices which should be regulated by the
government. In the 1976 case of Virginia State Board of Pharmacy v. Virginia

39
Citizens Consumer Council,[83] the Supreme Court ruled that advertising, or
"commercial speech", to some degree is protected under the First Amendment. To
avoid a First Amendment challenge by corporations, public schools could create
contracts that restrict the sale of certain product and advertising. Public schools can
also ban the selling of all food and beverage products on campus, while not
infringing on a corporation's right to free speech.
On December 13, 2010, President Obama signed the Healthy Hunger Free Kids
Act of 2010 (effective in 2014) that mandates schools that receive federal funding
to offer healthy snacks and beverages to students. The act bans the selling of soft
drinks to students and requires schools to provide healthier options such as water,
unflavored low-fat milk, 100% fruit and vegetable drinks or sugar-free carbonated
beverages. The portion sizes available to students will be based on age: eight
ounces for elementary schools, twelve ounces for middle and high schools.
Proponents of the act predict the new mandate it will make it easier for students to
make healthy beverage choices while at school.
In 2015, Terry-McElarth and colleagues published a study in the American Journal
of Preventative Medicine on regular soda policies and their effect on school
beverage availability and student consumption. The purpose of the study was to
determine the effectiveness of a program beginning in the 2014–2015 school year
that requires schools participating in federally reimbursable meal programs to
remove all competitive venues (a la carte cafeteria sales, vending machines, and
stores/snack bars/carts), on the availability of unhealthy beverages at schools and
student consumption. The study analyzed state- and school district-level policies
mandating soda bans and found that state bans were associated with significantly
lower school soda availability but district bans showed no significant associations.
In addition, no significant correlation was observed between state policies and
student consumption. Among student populations, state policy was directly
associated with significantly lower school soda availability and indirectly
associated with lower student consumption. The same was not observed for other
student populations.
Taxation
Sugary drinks tax

40
In the United States, legislators, health experts and consumer advocates are
considering levying higher taxes on the sale of soft drinks and other sweetened
beverages to help curb the epidemic of obesity among Americans, and its harmful
impact on overall health. Some speculate that higher taxes could help reduce soda
consumption. Others say that taxes should help fund education to increase
consumer awareness of the unhealthy effects of excessive soft drink consumption,
and also help cover costs of caring for conditions resulting from overconsumption.
The food and beverage industry holds considerable clout in Washington, DC, as it
has contributed more than $50 million to legislators since 2000.
In January 2013, a British lobby group called for the price of sugary fizzy drinks to
be increased, with the money raised (an estimated £1 billion at 20p per litre) to be
put towards a "Children's Future Fund", overseen by an independent body, which
would encourage children to eat healthily in school.
Bans
In March 2013, New York City's mayor Michael Bloomberg proposed to ban the
sale of non-diet soft drinks larger than 16 ounces, except in convenience stores and
supermarkets. A lawsuit against the ban was upheld by a state judge, who voiced
concerns that the ban was "fraught with arbitrary and capricious consequences".
Bloomberg announced that he would be appealing the verdict.

41
COMPANY PROFILE

42
 COMPANY PROFILE
Pepsi

Pepsi

Type Cola

Manufacturer PepsiCo

Country of United States

origin

Introduced 1893; 124 years

ago (as Brad's Drink)
1898; 119 years
ago (as Pepsi-Cola)
1961; 56 years
ago (as Pepsi)

Color Caramel E-150d

Variants Diet Pepsi

Pepsi Wild Cherry
Crystal Pepsi
Caffeine-Free Pepsi
Pepsi-Cola Made with Real
Sugar
Pepsi Vanilla
Pepsi Zero Sugar
Pepsi Next

43
 Related Coca-Cola
products RC Cola

Website pepsi.com

Pepsi (currently stylized as pepsi and formerly stylized as PEPSI) is

a carbonated soft drink produced and manufactured byPepsiCo. Originally created
and developed in 1893 and introduced as Brad's Drink, it was renamed as Pepsi-
Cola on August 28, 1898, and then as Pepsi in 1961. It is currently known in North
America alternatively as Pepsi-Cola as of 2014.
Pepsi products are enjoyed by consumers one billion times a day in more than 200
countries and territories around the world. Pepsi generated more than US $63
billion dollars in net revenue in 2015, driven by a complementary food and
beverage portfolio that includes Frito-Lay, Gatorade, Pepsi-Cola, Quaker and
Tropicana. PepsiCo's product portfolio includes a wide range of enjoyable foods
and beverages, including 22 brands that generate more than US $1 billion dollars
each in estimated annual retail sales.
At the heart of PepsiCo is Performance with Purpose – our goal to deliver top-tier
financial performance while creating sustainable growth and shareholder value. In
practice, Performance with Purpose means providing a wide range of foods and
beverages from treats to healthy eats; finding innovative ways to minimize our
impact on the environment and reduce our operating costs; providing a safe and
inclusive workplace for our employees globally; and respecting, supporting and
investing in the local communities where we operate. For more information,
PepsiCo India Region: Leadership through Performance with Purpose
PepsiCo entered India in 1989 and in a short period, has grown into one of the
largest MNC food and beverage businesses in the country. PepsiCo’s growth in
India has been guided by “Performance with Purpose”, its goal to deliver top-tier
financial performance while creating sustainable growth and shareholder value.
Large investor in India with strong brands: PepsiCo has been consistently
investing in India, in the areas of product innovation, increasing manufacturing
capacity, ramping up market infrastructure, strengthening supply chain and
expanding company’s agriculture programme. The company has built an expansive

44
beverage and snack food business supported by 62 plants across the country. In
two decades, the company has been able to organically grow eight brands each of
which generate Rs. 1000 crores or more in estimated annual retail sales and are
household names, trusted across the country.
A growing portfolio of enjoyable and wholesome snacks and
beverages: PepsiCo India’s diverse portfolio reflects its commitment to nourish
consumers with a diverse range of fun and healthier products and includes iconic
brands like Pepsi, Lay’s, Kurkure, Tropicana, Gatorade and Quaker. In addition to
the recently launched Lay’s Maxx, 7UP Revive and Tropicana Slice Alphonso, the
portfolio includes several healthier treats like Quaker Oats, Tropicana juices,
rehydrator Gatorade, Tata Water Plus and Quaker flavoured oats.
Model partnership with over 24,000 farmers: PepsiCo India has pioneered and
established a model of partnership with farmers and now works with over 24,000
happy farmers across nine states. More than 45 percent of these are small and
marginal farmers with a land holding of one acre or less. PepsiCo provides 360-
degree support to the farmer through assured buy back of their produce at pre-
agreed prices, quality seeds, extension services, disease control packages, bank
loans, weather insurance, and the latest technological practices. The association
with PepsiCo India has not only raised the incomes of small and marginal farmers,
but also their social standing.
Global leader in water conservation: In 2009, PepsiCo India achieved a
significant milestone, by becoming the first business to achieve ‘Positive Water
Balance’ in the beverage world, and has been Water Positive since then. In 2015,
PepsiCo India saved 12.75 billion litres more that it consumed in its manufacturing
operations. The company made this possible through innovative irrigation practices
like direct seeding, community water recharging initiatives, and by reducing the
consumption of water in its manufacturing facilities. PepsiCo is lauded for its
efforts for water conservation and has received numerous awards such as CII
National award for water management, Water Digest award for water practices and
Golden Peacock award for water conservation amongst others.
Care for the environment: PepsiCo India is focused on reducing its carbon
footprint. In 2015, PepsiCo’s India’s Food and Beverage plants had a 78% and
41% share from renewable energy sources, respectively such as bio mass and rice
husk boilers and wind turbines. Initiatives such as reduction in use of chemicals,
eco-friendly packaging initiatives and efficient waste management help reduce

45
load on the environment. PepsiCo in partnership with the NGO Exnora and local
municipalities has also been working on a unique waste collection and treatment
model programme called ‘Waste-to-Wealth’. The award winning programme has
positively impacted more than 5,00,000 people.
Following the successful implementation of the Waste to Wealth model
programme, PepsiCo India has handed over four municipalities in Tamil Nadu
(Chennai, Nagapattinam, Tenkasi, Cuddalore) and one municipal corporation in
Haryana (Panipat), to the respective authority for sustained delivery.
Exemplary employment practices: PepsiCo India provides direct and indirect
employment to almost 2,00,000 people. The company believes in providing
employment and growth opportunities to local talent. Its ‘College of Leadership’,
ensures early identification of talent, and employees’ focused development through
critical experiences. PepsiCo firmly believes that encouraging diversity means
encouraging policies and systems that respect people’s special needs. Not only
does PepsiCo have a vibrant and diverse workforce, it takes the utmost care to
make dynamic business leaders of its employees and foster their career and
personal growth through differentiated experiences and a robust leadership
development model.

46
 Mission and Vision
At Pepsi we believe that business and society can thrive together. We are guided
by Performance with Purpose: delivering top-tier results in a way that sustains and
respects business, society and the planet.
Our Mission
As one of the largest food and beverage companies in the world, our mission is to
provide consumers around the world with delicious, affordable, convenient and
complementary foods and beverages from wholesome breakfasts to healthy and
fun daytime snacks and beverages to evening treats. We are committed to investing
in our people, our company and the communities where we operate to help position
the company for long-term, sustainable growth.
Our Vision
At Pepsi, we're committed to achieving business and financial success while
leaving a positive imprint on society – delivering what we call Performance with
Purpose.
In practice, Performance with Purpose means providing a wide range of foods and
beverages from treats to healthy eats; finding innovative ways to minimize our
impact on the environment and reduce our operating costs; providing a safe and
inclusive workplace for our employees globally; and respecting, supporting and
investing in the local communities where we operate.
Wherever we do business, Performance with Purpose is our guide. We believe that
delivering for our consumers and customers, protecting the environment, sourcing
with integrity and investing in our employees are not simply good things to do, but
that these actions fuel our returns and position PepsiCo for long-term, sustainable
growth.
Guiding Principles
To advance our mission and vision with honesty, fairness and integrity, we are
committed to six guiding principles. When conducting business around the world,
we must always strive to:
Care for our customers, our consumers and the world we live in.

47
We are driven by the intense, competitive spirit of the marketplace, but we direct
this spirit toward solutions that benefit both our company and our constituents. We
see our success as inextricably linked to that of our customers, consumers and
communities.
Sell only products we can be proud of.
The true test of our standards is our own consumption and endorsement of the
products we sell. Without reservation. Our confidence helps ensure the quality of
our products, from the moment we purchase ingredients to the moment it reaches
the consumer's hand.
Speak with truth and candor.
We tell the whole story, not just what's convenient to our individual goals. In
addition to being clear, honest and accurate, we are responsible for ensuring our
communications are understood.
Win with diversity and inclusion.
We embrace people with diverse backgrounds, traits and ways of thinking. Our
diversity brings new perspectives into the workplace and encourages innovation, as
well as the ability to identify new market opportunities.
Balance short-term and long-term.
In every decision, we weigh both short-term and long-term risks and benefits.
Maintaining this balance helps sustain our growth and ensures our ideas and
solutions are relevant both now and in the future.

48
Respect others and succeed together.
Our mutual success depends on mutual respect, inside and outside the company. It
requires people who are capable of working together as part of a team or informal
collaboration. While our company is built on individual excellence, we also
recognize the importance and value of teamwork in turning our goals into
accomplishments.

HISTORY

The pharmacy of Caleb Bradham, with a Pepsi dispenser

The drink Pepsi was first introduced as "Brad's Drink"in New Bern, North
Carolina, United States, in 1893 by Caleb Bradham, who made it at his drugstore
where the drink was sold. It was renamed Pepsi Cola in 1898 after the root of the
word "dyspepsia" and the kola nutsused in the recipe. The original recipe also
included sugar and vanilla. Bradham sought to create a fountain drink that was
appealing and would aid in digestion and boost energy.

1919 newspaper ad for Pepsi-Cola

49
A plaque at 256 Middle Street, New Bern, NC
In 1903, Bradham moved the bottling of Pepsi-Cola from his drugstore to a rented
warehouse. That year, Bradham sold 7,968 gallons of syrup. The next year, Pepsi
was sold in six-ounce bottles, and sales increased to 19,848 gallons. In 1909,
automobile race pioneer Barney Oldfield was the first celebrity to endorse Pepsi-
Cola, describing it as "A bully drink...refreshing, invigorating, a fine bracer before
a race." The advertising theme "Delicious and Healthful" was then used over the
next two decades. In 1926, Pepsi received its first logo redesign since the original
design of 1905. In 1929, the logo was changed again.
In 1931, at the depth of the Great Depression, the Pepsi-Cola Company entered
bankruptcy—in large part due to financial losses incurred by speculating on the
wildly fluctuating sugar prices as a result of World War I. Assets were sold and
Roy C. Megargel bought the Pepsi trademark.[3]Megargel was unsuccessful, and
soon Pepsi's assets were purchased by Charles Guth, the President of Loft,
Inc. Loft was a candy manufacturer with retail stores that contained soda fountains.
He sought to replace Coca-Cola at his stores' fountains after Coke refused to give
him a discount on syrup. Guth then had Loft's chemists reformulate the Pepsi-Cola
syrup formula.
On three separate occasions between 1922 and 1933, The Coca-Cola Company
was offered the opportunity to purchase the Pepsi-Cola company, and it declined
on each occasion.

Pepsi-Cola trademark

The original stylized Pepsi-Cola logo used from 1898 until 1905.

50
The fourth stylized Pepsi-Cola logo used from 1940 to 1950. It was used again in
2014.
The original trademark application for Pepsi-Cola was filed on September 23, 1902
with registration approved on June 16, 1903. In the application's statement, Caleb
Bradham describes the trademark and indicated that the mark was in continuous
use for his business since August 1, 1901. The Pepsi-Cola's description is a
flavoring syrup for soda water. The trademark expired on April 15, 1904.
A second Pepsi-Cola trademark is on record with the USPTO. The application date
submitted by Caleb Bradham for the second trademark is Saturday, April 15, 1905,
with the successful registration date of April 15, 1906, over three years after the
original date. Curiously, in this application, Caleb Bradham states that the
trademark had been continuously used in his business "and those from whom title
is derived since in the 1905 application the description submitted to the USPTO
was for a tonic beverage". The federal status for the 1905 trademark is registered
and renewed and is owned by PepsiCo of Purchase, New York.
In 2014, the 1940 wordmark was used again and replacing the current wordmark
on many cans.

Rise
During the Great Depression, Pepsi gained popularity following the introduction in
1936 of a 12-ounce bottle. With a radio advertising campaign featuring
thejingle "Pepsi-Cola hits the spot / Twelve full ounces, that's a lot / Twice as
much for a nickel, too / Pepsi-Cola is the drink for you", arranged in such a way
that the jingle never ends. Pepsi encouraged price-watching consumers to switch,
obliquely referring to the Coca-Cola standard of 6.5 ounces per bottle for the price
of five cents (a nickel), instead of the 12 ounces Pepsi sold at the same price.
Coming at a time of economic crisis, the campaign succeeded in boosting Pepsi's
status. From 1936 to 1938, Pepsi-Cola's profits doubled.

51
Pepsi
Pepsi's success under Guth came while the Loft Candy business was faltering.
Since he had initially used Loft's finances and facilities to establish the new Pepsi
success, the near-bankrupt Loft Company sued Guth for possession of the Pepsi-
Cola company. A long legal battle, Guth v. Loft, then ensued, with the case
reaching the Delaware Supreme Court and ultimately ending in a loss for Guth.

Niche marketing

1940s advertisement specifically targeting African Americans, A youngRon

Brown is the boy reaching for a bottle

52
Walter Mack was named the new President of Pepsi-Cola and guided the company
through the 1940s. Mack, who supported progressivecauses, noticed that the
company's strategy of using advertising for a general audience either
ignored African Americans or used ethnic stereotypes in portraying blacks. Up
until the 1940s, the full revenue potential of what was called "the Negro market"
was largely ignored by white-owned manufacturers in the U.S. Mack realized
African Americans were an untapped niche market and that Pepsi stood to
gainmarket share by targeting its advertising directly towards them. To this end, he
hired Hennan Smith, an advertising executive "from the Negro newspaper field" to
lead an all-black sales team, which had to be cut due to the onset of World War II.
In 1947, Walter Mack resumed his efforts, hiring Edward F. Boyd to lead a twelve-
man team. They came up with advertising portraying black Americans in a positive
light, such as one with a smiling mother holding a six pack of Pepsi while her son
(a young Ron Brown, who grew up to be Secretary of Commerce) reaches up for
one. Another ad campaign, titled "Leaders in Their Fields", profiled twenty
prominent African Americans such as Nobel Peace Prize winner Ralph Bunche and
photographer Gordon Parks.
Boyd also led a sales team composed entirely of blacks around the country to
promote Pepsi. Racial segregation and Jim Crow laws were still in place
throughout much of the U.S.; Boyd's team faced a great deal of discrimination as a
result, from insults by Pepsi co-workers to threats by the Ku Klux Klan. On the
other hand, it was able to use racism as a selling point, attacking Coke's reluctance
to hire blacks and support by the chairman of Coke for segregationist Governor of
Georgia Herman Talmadge. As a result, Pepsi's market share as compared to
Coke's shot up dramatically in the 1950s with African American soft-drink
consumers three times more likely to purchase Pepsi over Coke. After the sales
team visited Chicago, Pepsi's share in the city overtook that of Coke for the first
time.
Journalist Stephanie Capparell interviewed six men who were on the team in the
late 1940s:
The team members had a grueling schedule, working seven days a week, morning
and night, for weeks on end. They visited bottlers, churches, "ladies groups,"
schools, college campuses, YMCAs, community centers, insurance conventions,

53
teacher and doctor conferences, and various civic organizations. They got famous
jazzmen such as Duke Ellington and Lionel Hampton to give shout-outs for Pepsi
from the stage. No group was too small or too large to target for a promotion.
Pepsi advertisements avoided the stereotypical images common in the major
media that depicted one-dimensional Aunt Jemimas and Uncle Bens whose role
was to draw a smile from white customers. Instead it portrayed black customers
as self-confident middle-class citizens who showed very good taste in their soft
drinks. They were economical too, as Pepsi bottles were twice the size.
This focus on the market for black people caused some consternation within the
company and among its affiliates. It did not want to seem focused on black
customers for fear white customers would be pushed away. In a national
meeting Mack tried to assuage the 500 bottlersin attendance by pandering to
them, saying: "We don't want it to become known as a nigger drink." After
Mack left the company in 1950, support for the black sales team faded and it
was cut.

54
 PEPSI PERFECT
Pepsi Perfect is a vitamin-enriched soft drink used in Back to the Future Part
II when Marty orders it in the Cafe '80s.
To commemorate the trilogy's 30th anniversary, Pepsico decided to release a
limited-edition run of 6,500, with each costing $20.15 which spells 2015, and
are releasing it on October 21, 2015 online. [16] At Comic-Con, around 1,500
bottles were given to the 1,500 people who were dressed as Marty McFly at the
annual convention, in commemoration of the trilogy.
The bottle itself is a 16.9 oz. container full of original Pepsi, under the name
Pepsi Made with Real Sugar.

Marketing

The Pepsi logo used from 1969 to 1991. In 1987, the font was modified slightly
to a more rounded version which was used until 1991. This logo is now used
for Pepsi Throwback

The Pepsi logo used from 2003 to late 2008. Pepsi Wild Cherry continued to
use this design through March 2010.Pepsi ONE continued to use this design
until mid-2012. This logo is still in use in some international markets. The

55
original version had the Pepsi wording on the top left of the Pepsi Globe. In
2007, the Pepsi wording was moved to the bottom of the globe.

The Pepsi logo used from 2008 to 2014. In October 2008, Pepsi launched an
entirely new logo, but it did not come into effect until early 2009, when usage
of the last logo ended. The Pepsi ball is now two-dimensional again, and the red
white and blue design has been changed to look like a smile, which changes
size according to the specific type of Pepsi it is used on (i.e. Diet Pepsi or Pepsi
Max). The font used in this logo is almost identical to the font used for Diet
Pepsi from 1975 to 1986. It is also worth noting that the "e" in "pepsi" is shaped
liked previous forms of the Pepsi Globe.
From the 1930s through the late 1950s, "Pepsi-Cola Hits The Spot" was the
most commonly used slogan in the days of old radio, classic motion pictures,
and later television. Its jingle (conceived in the days when Pepsi cost only five
cents) was used in many different forms with different lyrics. With the rise of
radio, Pepsi utilized the services of a young, up-and-coming actress
named Polly Bergen to promote products, oftentimes lending her singing talents
to the classic "...Hits The Spot" jingle.
Film actress Joan Crawford, after marrying then Pepsi-Cola President Alfred N.
Steele became a spokesperson for Pepsi, appearing in commercials, television
specials and televised beauty pageants on behalf of the company. Crawford also
had images of the soft drink placed prominently in several of her later films.
When Steele died in 1959, Crawford was appointed to the Board of Directors of
Pepsi-Cola, a position she held until 1973, although she was not a board
member of the larger PepsiCo, created in 1965.
The Buffalo Bisons, an American Hockey League team, were sponsored by
Pepsi-Cola in its later years; the team adopted the beverage's red, white and
blue color scheme along with a modification of the Pepsi logo (with the word
"Buffalo" in place of the Pepsi-Cola wordmark). The Bisons ceased operations
in 1970 (making way for the Buffalo Sabres).

56
Through the intervening decades, there have been many different Pepsi theme
songs sung on television by a variety of artists, from Joanie Summers to the
Jacksons to Britney Spears.
In 1975, Pepsi introduced the Pepsi Challenge marketing campaign where
PepsiCo set up a blind tasting between Pepsi-Cola and rival Coca-Cola. During
these blind taste tests, the majority of participants picked Pepsi as the better
tasting of the two soft drinks. PepsiCo took great advantage of the campaign
with television commercials reporting the results to the public.
Pepsi has been featured in several films, including Back to the Future Part
II (1989), Home Alone (1990), Wayne's World (1992), Fight Club (1999),
and World War Z (2013).
In 1996, PepsiCo launched the highly successful Pepsi Stuff marketing strategy.
By 2002, the strategy was cited by Promo Magazine as one of 16 "Ageless
Wonders" that "helped redefine promotion marketing".
In 2007, PepsiCo redesigned its cans for the fourteenth time, and for the first
time, included more than thirty different backgrounds on each can, introducing
a new background every three weeks. One of its background designs includes a
string of repetitive numbers, "73774". This is a numerical expression from a
telephone keypad of the word "Pepsi".
In late 2008, Pepsi overhauled its entire brand, simultaneously introducing a
new logo and a minimalist label design. The redesign was comparable to Coca-
Cola's earlier simplification of its can and bottle designs. Pepsi also teamed up
with YouTube to produce its first daily entertainment show called Poptub. This
show deals with pop culture, internet viral videos, and celebrity gossip.
In 2009, "Bring Home the Cup" changed to "Team Up and Bring Home the
Cup". The new installment of the campaign asks for team involvement and an
advocate to submit content on behalf of their team for the chance to have
the Stanley Cup delivered to the team's hometown by Mark Messier.
Pepsi has official sponsorship deals with four major North American
professional sports leagues: the National Football League, National Hockey
League, Major League Baseball and National Basketball Association. Up until
December 2015 Pepsi had sponsored Major League Soccer before the MLS

57
signed a four-year deal with Coca-Cola.[25] Pepsi also has the naming
rights to Pepsi Center, an indoor sports facility in Denver, Colorado. In 1997,
after his sponsorship with Coca-Cola ended, retired NASCAR Sprint Cup
Series driver turned Fox NASCAR announcer Jeff Gordon signed a long-term
contract with Pepsi, and he drives with the Pepsi logos on his car with various
paint schemes for about 2 races each year, usually a darker paint scheme during
nighttime races. Pepsi has remained as one of his sponsors ever since. Pepsi has
also sponsored the NFL Rookie of the Year award since 2002.
Pepsi also has sponsorship deals in international cricket teams. The Pakistan
cricket team is one of the teams that the brand sponsors. The team wears the
Pepsi logo on the front of their test and ODI test match clothing.
In July 2009, Pepsi started marketing itself as Pecsi in Argentina in response to
its name being mispronounced by 25% of the population and as a way to
connect more with all of the population.
In October 2008, Pepsi announced that it would be redesigning its logo and re-
branding many of its products by early 2009. In 2009, Pepsi,Diet
Pepsi and Pepsi Max began using all lower-case fonts for name brands, and
Diet Pepsi Max was re-branded as Pepsi Max. The brand's blue and red globe
trademark became a series of "smiles", with the central white band arcing at
different angles depending on the product until 2010. Pepsi released this logo in
U.S. in late 2008, and later it was released in 2009 in Canada (the first country
outside of the United States for Pepsi's new logo), Brazil, Bolivia, Guatemala,
Nicaragua, Honduras, El Salvador, Colombia, Argentina, Puerto Rico, Costa
Rica, Panama, Chile, Dominican Republic, the Philippines and Australia. In the
rest of the world, the new logo has been released in 2010. The old logo is still
used in several markets internationally, and has been phased out most recently
in France and Mexico. The UK started to use the new Pepsi logo on cans in an
order different from the US can. Starting in mid-2010, all Pepsi variants,
regular, diet, and Pepsi Max, have started using only the medium-sized "smile"
Pepsi Globe.
Pepsi and Pepsi Max cans and bottles in Australia now carry the localized
version of the new Pepsi Logo. The word Pepsi and the logo are in the new
style, while the word "Max" is still in the previous style. Pepsi Wild

58
Cherry finally received the 2008 Pepsi design in March 2010 and Pepsi One got
the redesign in 2012.
In 2011, for New York Fashion Week, Diet Pepsi introduced a "skinny" can
that is taller and has been described as a "sassier" version of the traditional can
that Pepsi says was made in "celebration of beautiful, confident women". The
company's equating of "skinny" and "beautiful" and "confident" is drawing
criticism from brand critics, consumers who do not back the "skinny is better"
ethos, and the National Eating Disorders Association, which said that it takes
offense to the can and the company's "thoughtless and irresponsible"
comments. PepsiCo Inc. is a Fashion Week sponsor. This new can was made
available to consumers nationwide in March.
In April 2011, Pepsi announced that customers will be able to buy a complete
stranger a soda at a new "social" vending machine, and even record a video that
the stranger would see when they pick up the gift.[29]
In March 2012, Pepsi introduced Pepsi Next, a cola with half the calories of
regular Pepsi.
In March 2013, Pepsi for the first time in 17 years reshaped its 20-ounce bottle.
However, some areas did not get the updated bottles until early 2014.
In November 2013, Pepsi issued an apology on their official Swedish Facebook
page for using pictures of Cristiano Ronaldo as a voodoo doll in various scenes
before the Sweden v Portugal 2014 FIFA World Cup playoff game.
In November 2015, Pepsi announced it would launch a new variation called
"1893". This variation was released in 2016, as being another Pepsi variation
made with all natural ingredients, being similar to Kaleb's Cola.
Rivalry with Coca-Cola
Cola Wars
According to Consumer Reports, in the 1970s, the rivalry continued to heat up
the market. Pepsi conducted blind taste tests in stores, in what was called the
"Pepsi Challenge". These tests suggested that more consumers preferred the
taste of Pepsi (which is believed to have more lemon oil, and less orange oil,
and uses vanillin rather than vanilla) to Coke. The sales of Pepsi started to

59
climb, and Pepsi kicked off the "Challenge" across the nation. This became
known as the "Cola Wars".
In 1985, The Coca-Cola Company, amid much publicity, changed its formula.
The theory has been advanced that New Coke, as the reformulated drink came
to be known, was invented specifically in response to the Pepsi Challenge.
However, a consumer backlash led to Coca-Cola quickly reintroducing the
original formula as not Coke previous to 1985, but to Coca-Cola "Classic".
According to Beverage Digest's 2008 report on carbonated soft drinks,
PepsiCo's U.S. market share is 30.8 percent, while The Coca-Cola Company's
is 42.7 percent. Coca-Cola outsells Pepsi in most parts of the U.S., notable
exceptions being central Appalachia, North Dakota, and Utah. In the city
of Buffalo, New York, Pepsi outsells Coca-Cola by a two-to-one margin.
Overall, Coca-Cola continues to outsell Pepsi in almost all areas of the world.
However, exceptions include Oman; India; Saudi Arabia; Pakistan (Pepsi has
been a dominant sponsor of the Pakistan cricket team since the 1990s);
the Dominican Republic; Guatemala; the Canadian
provinces of Quebec, Newfoundland and Labrador, Nova Scotia, andPrince
Edward Island; and Northern Ontario.
Pepsi had long been the drink of French-Canadians, and it continues to hold its
dominance by relying on local Québécois celebrities (especially Claude
Meunier, of La Petite Viefame) to sell its product. PepsiCo introduced the
Quebec slogan "here, it's Pepsi" (Ici, c'est Pepsi) in response to Coca-Cola ads
proclaiming "Around the world, it's Coke" (Partout dans le monde, c'est Coke).
As of 2012, Pepsi is the third most popular carbonated drink in India, with a
15% market share, behind Sprite and Thums Up. In comparison, Coca-Cola is
the fourth most popular carbonated drink, occupying a mere 8.8% of the Indian
market share. By most accounts, Coca-Cola was India's leading soft drink until
1977, when it left India because of the new foreign exchange laws which
mandated majority shareholding in companies to be held by Indian
shareholders. The Coca-Cola Company was unwilling to dilute its stake in its
Indian unit as required by the Foreign Exchange Regulation Act (FERA), thus
sharing its formula with an entity in which it did not have majority
shareholding. In 1988, PepsiCo gained entry to India by creating a joint venture

60
with the Punjab government-owned Punjab Agro Industrial Corporation (PAIC)
and Voltas India Limited. This joint venture marketed and sold Lehar Pepsi
until 1991, when the use of foreign brands was allowed; PepsiCo bought out its
partners and ended the joint venture in 1994. In 1993, The Coca-Cola Company
returned in pursuance of India's Liberalization policy.

Pepsi bottles in USSR period style in supermarket in Kyiv

In Russia, Pepsi initially had a larger market share than Coke, but it was
undercut once the Cold War ended. In 1972, PepsiCo struck a barter agreement
with the then government of the Soviet Union, in which PepsiCo was granted
exportation and Western marketing rights toStolichnaya vodka in exchange for
importation and Soviet marketing of Pepsi-Cola. This exchange led to Pepsi-
Cola being the first foreign product sanctioned for sale in the U.S.S.R.
Reminiscent of the way that Coca-Cola became a cultural icon and its global
spread spawned words like "coca colonization", Pepsi-Cola and its relation to
the Soviet system turned it into an icon. In the early 1990s, the term "Pepsi-
stroika" began appearing as a pun on "perestroika", the reform policy of the
Soviet Union under Mikhail Gorbachev. Critics viewed the policy as an attempt
to usher in Western products in deals there with the old elites. Pepsi, as one of
the first American products in the Soviet Union, became a symbol of that
relationship and the Soviet policy. This was reflected in Russian author Victor
Pelevin's book "Generation P".
In 1989, Billy Joel mentioned the rivalry between the two companies in the
song "We Didn't Start The Fire". The line "Rock & Roller Cola Wars" refers to
Pepsi and Coke's usage of various musicians in advertising campaigns. Coke

61
used Paula Abdul, while Pepsi used Michael Jackson. Both companies then
competed to get other musicians to advertise its beverages.
In 1992, following the dissolution of the Soviet Union, Coca-Cola was
introduced to the Russian market. As it came to be associated with the new
system, and Pepsi to the old, Coca-Cola rapidly captured a significant market
share that might otherwise have required years to achieve. By July 2005, Coca-
Cola enjoyed a market share of 19.4 percent, followed by Pepsi with 13
percent.
Pepsi did not sell soft drinks in Israel until 1991. Many Israelis and some
American Jewish organizations attributed Pepsi's previous reluctance to do
battle to the Arab boycott. Pepsi, which has a large and lucrative business in the
Arab world, denied that, saying that economic, rather than political, reasons
kept it out of Israel.
Pepsiman
Pepsiman is an official Pepsi mascot from Pepsi's Japanese corporate branch.
The design of the Pepsiman character is attributed to Canadian comic book
artist Travis Charest, created sometime around the mid-1990s. Pepsiman took
on three different outfits, each one representing the current style of the Pepsi
can in distribution. Twelve commercials were created featuring the character.
His role in the advertisements is to appear with Pepsi to thirsty people or people
craving soda. Pepsiman happens to appear at just the right time with the
product. After delivering the beverage, sometimes Pepsiman would encounter a
difficult and action-oriented situation which would result in injury. Another
more minor mascot, Pepsiwoman, also featured in a few of her own
commercials for Pepsi Twist; her appearance is basically a female Pepsiman
wearing a lemon-shaped balaclava.
In 1996, Sega-AM2 released the Sega Saturn version of its arcade fighting
game Fighting Vipers. In this game Pepsiman was included as a special
character, with his specialty listed as being the ability to "quench one's thirst".
He does not appear in any other version or sequel. In 1999, KID developed
a video game for the PlayStation entitled Pepsiman. As the titular character,
the player runs "on rails" (forced motion on a scrolling linear path),
skateboards, rolls, and stumbles through various areas, avoiding dangers and

62
collecting cans of Pepsi, all while trying to reach a thirsty person as in the
commercials.
Car contest in Novosibirsk
In 2002, at Novosibirsk, Pepsi created a contest to win a car, where customers
who bought a bottle of Pepsi could win a car by choosing the right key for the
car. However, when a man was able to open a car, he was sued by Pepsi, as
Pepsi considered that he had forced the car open by applying pressure on the
lock instead of selecting the right key, although the man stated that he had
complied with every step of the contest rules.

Ingredients

Nutrition facts

Serving size 12 fl oz (355 ml)

Servings per container 1

Amount per serving

Calories 150 Calories from fat 0

% Daily value*

Total fat 0 g 0%

Saturated fat 0 g 0%

Trans fat 0 g

Cholesterol 0 mg 0%

63
 Sodium 15 mg 1%

Potassium 0 mg 0%

Total carbohydrate 41 g 14%

Dietary fiber 0 g 0%

Sugars 41 g

Protein 0 g

Vitamin A 0% Vitamin C 0%

Calcium 0% Iron 0%

*Percent daily values are based on a

2,000-calorie diet. Your daily values
may be higher or lower depending on
your calorie needs.

In the United States, Pepsi is made with carbonated water, high fructose corn
syrup, caramel color, sugar, phosphoric acid, caffeine,citric acid and natural
flavors. A can of Pepsi (12 fl ounces) has 41 grams of carbohydrates (all
from sugar), 30 mg of sodium, 0 grams of fat, 0 grams of protein, 38 mg
of caffeine and 150 calories. The caffeine-free Pepsi-Cola contains the same
ingredients but without the caffeine.
In August 2010, PepsiCo entered into a 4-year agreement with Senomyx for the
development of artificial high-potency sweeteners for PepsiCo beverages.
Under the contract, PepsiCo is paying $30 million to Senomyx for the research
and future royalties on PepsiCo products sold using Senomyx technology.

64
According to PepsiCo, this collaboration will focus on the discovery,
development and commercialization of sweet enhancers, with the purpose of
providing lower-calorie PepsiCo beverages. PepsiCo will have exclusive rights
to the Senomyx sweet flavor ingredients developed through the collaboration.
In September 2012 Pepsi launched a new product called Pepsi Next which
contains 30% less sugar and added Stevia as a zero calorie sweetener. The
product was rolled out in Australia and was launched in the US on February 27,
2013.

SLOGANS
American slogans

 1939–1950: "Twice as Much for a Nickel"

 1949: "Pepsi Cola P-E-P-S-I (spelled out), that's your smartest cola buy."
 1949–1950: "Pepsi Cola hits the spot, two full glasses, that's a lot"
 1950: "More Bounce to the Ounce"
 1950–1957: "Any Weather is Pepsi Weather"
 1957–1958: "Say Pepsi, Please"
 1959-1960: "The Sociables Prefer Pepsi"
 1961–1964: "Now It's Pepsi for Those Who Think Young" (jingle sung
by Joanie Sommers)
 1964–1967: "Come Alive, You're in the Pepsi Generation" (jingle sung by
Joanie Sommers)
 1967–1969: "(Taste that beats the others cold) Pepsi Pours It On".
 1969–1973: "You've Got a Lot to Live, and Pepsi's Got a Lot to Give"
 1973–1977: "Join the Pepsi People (Feeling Free)"
 1975-1978: "Have a Pepsi Day"
 1979–1981: "Catch That Pepsi Spirit" (David Lucas, composer)
 1981–1983: "Pepsi's got your taste for life"
 1983–1984: "Pepsi Now! Take the Challenge!"
 1984–1988 and 1990-1991: "Pepsi. The Choice of a New Generation"
(featuring Michael Jackson)
 1989: "Pepsi. A Generation Ahead"
 1991–1992: "Gotta Have It"/"Chill Out"
 1992: "The Choice Is Yours"

65
 1992–1993: "Be Young, Have Fun, Drink Pepsi"
 1993–1994: "Right Now" (Van Halen song for the Crystal
Pepsi advertisement)
 1994–1995: "Double Dutch Bus" (Pepsi song sung by Brad Bentz)
 1995: "Nothing Else is a Pepsi"
 1995–1996: "Drink Pepsi. Get Stuff." (Pepsi Stuff campaign)
 1996: "Change The Script"
 1997–1998: "Generation Next" (with the Spice Girls)
 1998: "Generation Next" (with Ricky Martin, During 1998 FIFA World
Cup)
 1998–1999: "It's the cola" (100th anniversary commercial)
 1999: "Ask for More" (commercial and promotional single with Janet
Jackson)
 1999–2000: "For Those Who Think Young"/"The Joy of Pepsi-Cola"
(commercial with Britney Spears/commercial with Mary J. Blige)
 2003: "It's the Cola"/"Dare for More" (Pepsi Commercial)
 2006–2007: "Why You Doggin' Me"/"Taste the one that's forever young"
(Mary J. Blige)
 2007–2008: "More Happy"/"Taste the once that's forever young" (Michael
Alexander)
 2008: "Pepsi Stuff" Super Bowl Commercial (Justin Timberlake)
 2008: "Pepsi is #1" ТV commercial (Luke Rosin)
 2008–present: "Something For Everyone"
 2009–present: "Refresh Everything"/"Every Generation Refreshes the
World"
 2010–present: "Every Pepsi Refreshes The World"
 2011–present "Summer Time is Pepsi Time"
 2011–present "Born in the Carolinas"
 2012: "Where there's Pepsi, there's music" – used for the 2012 Super Bowl
commercial featuring Melanie Amaro
 2012: "Change The Game" (featuring David Beckham, Ronaldinho, Cesc
Fàbregas, and Lionel Messi)
 2012: "The Best Drink Created Worldwide"
 2013–2015: "Live for Now" – used for the 2013 Super Bowl Halftime show
commercial featuring Beyoncé

66
 2015: "Out of the Blue" - used exclusively for a music ad campaign
encouraging music makers to send submissions in a contest.
 2015–present: "The Joy of Pepsi-Cola"

International slogans

 1990–1991: "Yehi hai right choice Baby, Aha" (Hindi – meaning "This is
the right choice Baby <sound of approval>") (India)
 1996–1997: "Pepsi: There's nothing official about it" (during the Wills
World Cup (cricket) held in India/Pakistan/Sri Lanka)
 1999–2006: "Yeh Dil Maange More!" (Hindi – meaning "This heart asks for
more") (India)
 2002: "Change the World" (Japan)
 2003-2007: "Khallik adaha" (Arabic) (Middle East and North Africa) -
meaning "stay on its size"
 2000–present: "Pepsi ye pyaas heh badi" ((Hindi) meaning "There is a lot of
thirst" (India))
 2009–present: "Yeh hai youngistaan meri jaan" (Hindi – meaning "This is
our young country my darling")
 2009–present: "My Pepsi My Way" (India)
 2009–present: "Refresca tu Mundo" (Spanish – meaning "Refresh your
world") (Spanish speaking countries in Latin America)
 2009: "Joy It Forward" (Canada)
 2010–2014: "Pepsi. Sarap Magbago." (Philippines – meaning "It's nice to
change")
 2010–2011: "Badal Do Zamana" (Urdu – meaning "Change The World" by
CALL) (Pakistan)
 2010–2011: "Love!" (Japan, for Pepsi Nex)
 2010–present: "Pode ser bom, pode ser muito bom, pode ser Pepsi" ("It can
be good, it can be very good, it can be Pepsi") – Brazil and Portugal
 2011–present: "Change the game" (India, Bangladesh and Pakistan for
the 2011 Cricket World Cup)
 2011–2013: "Dunya Hai Dil Walon Ki" (Pakistan - meaning "World is For
Lovers" by Ali Zafar)[58]
 2011–present: "Ici, c'est Pepsi" (Québec - meaning "Here, it's Pepsi")

67
 2011–present: "Go Next!" (Japan, for Pepsi Next)
 2013–present: "Kore BaMishpahot Hakhi Tovot!" (Hebrew) (Israel) -
meaning "Heppens at the best families"
 2013–2015: "Dil Maange Abhi" (Urdu) (Pakistan - meaning "Heart Asks
Now")
 2013–present: "Oh Yes Abhi" (Hindi) (India) - "meaning Oh Yes Now"
 2013–present: "Yalla now!" (Arabic) (Middle East and North Africa) -
meaning "Let's Go Now"
 2015–present: "Live It Abhi" (India) (Pakistan, 2015–2016) - meaning "Live
It Now"
 2015–present: "Pepsi. Araw mo 'to." (Philippines - meaning "It's your day")
 2016–present: "Seru Itu Pilihan" (Indonesian) (Indonesia) - meaning "The
better choice"
 2016–present: "Khana Banay Exciting" (Pakistan - meaning "Meal Turns
Exciting" by Fawad Khan)

Global slogans

 2013–present: "Embrace your past, but live for now" - Global campaign
featuring Beyoncé.

Television channel

 Pepsi MTV Indies

Variants
List of Pepsi variations
Fictional drinks

 Pepsi Perfect: A vitamin-enriched Pepsi variation shown in the movie Back

to the Future Part II in scenes set in the year 2015. This was later released as
a limited-edition drink.
 Pepsi Nex: Pepsi variation shown in the 2011 Japanese anime series, Tiger
& Bunny. Pepsi then released a Pepsi Nex variant in Japan in 2012, perhaps
for promotional purposes.

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 PRODUCT RANGE

7UP

Brand History
7UP, the refreshing clear drink with a natural lemon and lime flavor was created in
1929. It 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 instant hit with his trendy look, laid-back attitude and
unconventional take on life. 7UP is one of the first to be nationally distributed
besides being marketed as a healthier alternative to other soft drinks.

69
Brand Advantage
7UP's lemon refreshment picks you up and leaves you feeling upbeat. Its sparkling,
crisp lemon and lime flavor keeps you positive against all odds. Just the perfect
drink for a country that's simply unputdownable by its share of downswings and
challenges. We're always upbeat about the present, and optimistic about our future.
7UP’s brand philosophy - I Feel Up - celebrates this irrepressible optimism.
Did You Know?
Over the years 7UP has engaged the youth with its lemon based refreshing taste
coupled with its refreshing attitude towards life.
This refreshing take of 7UP has been evident in all its communication through the
years. Over the years 7UP has been serenaded by crooning’s of the svelte Yana
Gupta got cajoled by curvy Mallika Sehrawat was uniquely endorsed by Bappi
Lahiri, its take on life popularized by Sharman Joshi, Allu Arjun, STR and Puneeth
Rajkumar. Most recently Irrfan Khan got refreshed by 7UP. The Pepsi IPL teams
of Chennai Super Kings and Hyderabad Sunrisers also get their dose of
refreshment from 7UP.
7UP has always had a huge presence in South India. The brand has been running
its hugely popular yearly program of ‘7UP Dance Pattalam’. Apart from the large
prize money, the program provides a most coveted platform to the Dancing talent
from South India. Each year the love of the consumers makes this program even
bigger. The program has got associations from some of the great dancing
Superstars of the South – Allu Arjun, STR (Simbu) and Puneeth Rajkumar.
Duke's

Duke’s Legacy
Founded in 1889 by Dinshwaji Pandole, Duke’s is a brand that is seeped in
Mumbai’s rich history. It was in many ways the country’s first aerated soft drink
and a pioneer on many fronts. Many a generations have grown up enjoying the

70
 refreshing taste of Duke’s. Thus when PepsiCo India brought this brand in 1994, it
also inherited Duke’s rich Mumbai legacy. While the Lemonade flavour has
refreshed the consumers ever since, in September 2011 some more flavours of
Duke’s , the delicious Raspberry and the sugary sweet Ice-cream soda were
relaunched. And with it was launched Duke’s Masala Soda, with its strong local
flavour that has the consumers wanting for more..
Duke’s – Refreshing Mumbai!!
Just a year into its re-launch Duke’s is being loved by all Mumbaikars. While the
old drink is for nostalgia, the young are attracted to the unique flavours that Duke’s
offers. Be it morning, after meal or in the evening breeze Duke’s flavours refresh
you every time. As Duke’s consumers say Duke’s is an ‘Anytime Drink’!!! The
sweet Raspberry loved by the Parsi community in Mumbai is getting many new
connoisseurs. The Mumbai Masala Soda appeals to all with a very unique Indian
taste. What’s more the new party mixers launched under the Duke’s name have
taken the young in city by storm. No party is complete without the Classic
Mojito or theExotic Blue Lagoon!!!
Brand Facts
 Founded in 1889 by Dinshwaji Pandole a Parsi gentleman
 Bought by PepsiCo in 1994
 Relaunched in 2011
Mirinda

71
 /> >
Brand History
Mirinda is an international soft drink brand from Spain that was launched in India
in 1991. The irresistible taste of Mirinda was communicated through our 1996
‘Mirinda Men’ campaign, the 2000 ‘Taste Pe Atka, Mirindaaaa’ campaign and the
‘Taste Aisa Chaye Character Fisla Jaye’ campaign of 2003.
In 2008, the brand decided to up the ante and deliver a brand philosophy that
would resonate strongly with consumers. Consequently, Mirinda adopted a bold
and vibrant colour, great orangey taste and sparkling bubbles that encouraged one
to be more carefree, spontaneous and playful and occasionally give in to an
impulse of uninhibited fun. This was conveyed through the ‘Pagalpanti Bhi Zaroori
Hai’ campaign with Asin in 2008. In 2009, Mirinda established orange as the core
of the brand with ‘Orange Dikha Toh Mooh Bola Mirindaaaa’.
Quick Brand Facts
 1991: Mirinda Orange launched in India.
 1998: Mirinda Lemon launched in India.
Mountain Dew

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Brand History The main formula of Mountain Dew was invented in Virginia. The
drink was 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 its iconic
launch campaign ‘Cheetah Bhi Peeta Hai’.
Brand Advantage
It is a soft drink that exhilarates like no other because of its active, high-energy,
extreme citrus taste. The idea of daring, challenges, a ‘can do’ attitude, adventure
and exhilaration are deeply entrenched in its brand DNA. The brand has always
celebrated the bold, adventurous and rebellious spirit of youth. This is reflected in
the high-adrenaline advertising of the brand and its connection to outdoor
adventure.
Did You Know?
‘Darr Ke Aage Jeet Hai’
In 2007, the brand was re-launched with a completely new, punchier formulation.
Communication aimed at forging a strong emotional connect with the audience.
Thus began the ‘Darr Ke Aage Jeet Hai’ campaign, which acknowledged that fear
was a very real aspect of the world of adventure and Mountain Dewwanted young
people to believe in themselves in their moment of fear. For beyond fear lay
victory.

73
 Quick Brand Facts
 Mountain Dew was invented in Virginia in 1948.
 It was launched in India in 2003.
Pepsi

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 Brand History
Pepsi is a hundred-year-old brand loved by over 200 million people worldwide.
Pepsi is ubiquitous on just about every social occasion.
 Youngistaan loves it. 200 million people worldwide love it. But what has
made Pepsi the single largest selling soft drink brand in India is actually a formula
concocted a century ago in a faraway continent.
 1886, the US. Caleb Bradman, a man with a plan formulated a blockbuster
of a digestive drink and decided to call it Brad’s drink. The potion was to become
Pepsi Cola in 1898, and eventually, Pepsi in 1903.
 Since its inception, Pepsi has always been at the forefront of the beverage
industry and has come up with revolutionary concepts such as Diet Pepsi, 2l
bottles, recyclable plastic cola bottles and the enviable My Can.
Brand Advantage
 Pepsi has become a friend to youth and youth culture. Over generations,
youngsters have grown up with Pepsi and have shared an emotional connect with it
unlike with any other cola brand. Be it parties, hangouts with friends, or just
another day at home, a day is never complete without the fizz of Pepsi!
 Pepsi has always fuelled youth passions like cricket, Bollywood, music and
now football. Youth icons like MS Dhoni, Ranbir Kapoor, Didier Drogba,
Virendar Sehwag, Sachin Tendulkar, Priyanka Chopra and Deepika Padukone have
endorsed Pepsi since its launch in India.
 Pepsi Changed the Game during the 2011 cricket world cup by challenging
convention, celebrating the unorthodox and by becoming the official sponsor of
everything that was unofficial about the sport! Change the Game even as a thought
has gained enormous popularity and generated tremendous buzz.

75
 Taking the same theme forward in 2012, Pepsi changed the game yet again
by taking the lead in celebrating the exciting new platform of football. Having
brought the biggest international football stars and pitching them against the
mighty Indian cricketers in a classic faceoff for Pepsi – is something which only a
brand like Pepsi can deliver.
Quick Brand Facts
 Flagship brand of PepsiCo.
 100 year old brand loved by over 200 million people worldwide.
 An iconic youth brand in India.
Slice

Brand History
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 that made
consumers fall in love with its taste. With new pack graphics and clutter-breaking
advertising, Slice has built a powerful appeal.
Brand Advantage
With the launch of the ‘Aamsutra’ campaign in 2008, its winning taste and
appealing pack graphics, Slice created a great deal of excitement in its category
and celebrated the indulgence in mangoes like no other brand had done before.
While other players have portrayed the mango as a simple and innocent fruit, Slice
celebrates the sheer indulgence and sensuality involved in consuming a mango.

76
 The creative ‘Aamsutra’ idea communicates the experience of extreme sensuous
pleasure through the act of drinking Slice.
Slice was the first brand ever in the Juice and Juice Drinks category to sign on
Bollywood diva Katrina Kaif as the brand ambassador for Slice.
In 2009, Slice took the notion of indulgence to a whole new level with the launch
of the ‘Slice Pure Pleasure Holidays’, giving its consumers a chance to win
luxurious all-expenses-paid holidays to dream European destinations like Paris,
Vienna, Greece and Venice.
Quick Brand Facts
 Slice was launched in India in 1993
 Slice Mangola was introduced in 1994

Tropicana

Brand History
Tropicana was founded in Bradenton, Florida, USA, in 1947. It is now enjoyed
almost everywhere in the world. Carefully nurtured for over 50 years, Tropicana
has matured into one of the most respected beverage brands. Tropicana is the #1
brand in packaged 100% Juice* in the world in 2011 in off-trade volume. It is
today available in 63 countries. Since 1998, Tropicana has been owned by

77
PepsiCo, Inc. Tropicana Premium Gold was re-launched as Tropicana 100% in
2008.

78
 Brand Advantage
Tropicana continues to select the best fruit to manufacture high-quality juices and
original products, pioneer innovative processes and explore new markets for its
products. It is committed to fostering healthy lifestyles by ensuring that its
products are naturally nutritious and provide the daily benefits that one needs.
In India, Tropicana comes in two categories: 100% Juices (sold as Tropicana
100%) and Juice Beverages (sold as Tropicana).
Quick Brand Facts
 Launched in India in 2004.
 Available in two categories - 100 percent juice and juice-based drinks.

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OBJECTIVE OF STUDY

80
 OBJECTIVE OF STUDY

Based on the problem the objective of the research is divided into two
which are as follows:

Primary Objective:

 To analyse brand loyalty of customers towards the company’s products range of

Pepsi.

Secondary Objective:

 Analyse consumer satisfaction of Pepsi .

 Analyse the Consumer buying behaviour on product of Pepsi

81
RESEARCH METHODOLOGY

82
 RESEARCH METHODOLOGY
INTRODUCTION
This chapter aims to understand the research methodology establishing a
framework of evaluation and revaluation of primary and secondary research. The
techniques and concepts used during primary research in order to arrive at
findings; which are also dealt with and lead to a logical deduction towards the
analysis and results
RESEARCH DESIGN
The research design applied here was exploratory research.
Exploratory Research is one in we don’t know about the problem, we have to find
about the problem and then work on solving the problem. Whereas in case of
descriptive research, we know the problem, we just have to find the solution to the
problem. Generally descriptive research design is applied after exploratory
research design.
Here after doing the secondary research, we found the general satisfaction about
the Pepsi but then in second phase we tried to figure out where the difference lies
and on what basis the banks differ from each other

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RESEARCH TOOL
Research tool
The purpose is to first conduct a intensive secondary research to understand the
full impact and implication of the industry, to review and critique the industry
norms and reports, on which certain issues shall be selected, which remain
unanswered , this shall be further taken up in the next stage of secondary
research. This stage shall help to restrict and select only the important question
and issue, which inhabit growth and segmentation in the industry.
DATA COLLECTION:
Both primary and secondary data have been collected very vigorously
Secondary data: it is collected by the study of various reports. The reports studied
under secondary data.
THE RESEARCH REPORT

The report is the result of a survey which was undertaken in Lucknow. The
objectives of the project has been fulfilled by getting response from the customer
associated to these segments through a personal interview in the form of a
questionnaire. The responses available through the questionnaire are used to
evaluate the brand loyalty for the products of Pepsi and the willingness of the
customer to purchase its products on future.

The project also covers an analysis of the switch over of customers to

competitor's products in the market.

THE RESEARCH PROBLEM

The problem formulation is the first step to a successful Research

process. Project undertaken the problem of analyzing the customer satisfaction
level of the Pepsi and to find the Consumer satisfaction of Pepsi .

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 THE RESEARCH DESIGN

The research design used in the project is exploratory design. The

investigation is carried upon the customers in Lucknow. The reason for choosing
this design is to get responses from the customers so that their satisfaction about
the products of the company and their loyalty could be predicted.
THE DATA SOURCE

The data has been taken from two sources

 Primary data source
The primary data source has been collected through questionnaire by personally
interviewing each respondent on a number of queries structured in a questionnaire.
 Secondary data source
Secondary data was collected from following sources
Prior research reports
Websites
Books
Newspaper
Personal consultation
THE AREA OF WORK

The field work is conducted in the Lucknow in various Places like

Showroom and retailers situated in different location all over the city.
THE SAMPLE SIZE
The sample size consists of 100 units out of which the most logical
and non biased response are selected thus the sample size is taken out to be 100
units.

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 LIMITATION

Though, best efforts have been made to make the study fair,
transparent and error free. But there might be some inevitable and inherent
limitations. Though outright measure are undertaken to make the report most
accurate.
The limitation of the survey are narrated below:
 The project is valid for Lucknow only.
 It was not possible to cover each and every Retail shop due to time
constrains.
 There may be some biased response form the respondents
 Some respondents did not provide the full data.
 Unwillingness on the part of the customers to disclose the information as per
the questionnaire.
 The decisiveness on the part of the customers regarding some question hence
difficulty faced in recording and analyzing the data.

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DATA ANALYSIS AND
INTERPRETATION

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 DATA ANALYSIS AND INTERPRETATION

1. Do you like the idea of Pepsi products

Yes 87
No 13

13%

87%

Yes No

Interpretation:
87% respondent said that they have idea to purchase Pepsi product but 13%
respondent have no idea to purchase Pepsi product.

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2.Have you ever purchase product of Pepsi?

Yes 77
No 23

23%

77%

Yes No

Interpretation:
77% respondent said that they purchase Pepsi product but 23% said no.

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3.What helps you to decide product of Pepsi you purchase?

TV Advertisement 23
Personal recommendation 36
Special offer 11
Radio advertising 17
News paper 7
Word of mouth 6

7% 6% 23%
17%

11%
36%

TV Advertisement Personal recommendation

Special offer Radio advertising
News paper Word of mouth

Interpretation:
23% respondent said that TV advertisement help to decide to purchase Pepsi
product , 36% personal recommendation, 11% special offer, 17% radio advertising,
7% news paper and 6% said that word of mouth is help to purchase Pepsi product.

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4.How frequently you see advertisement of Pepsi product ?

Weekly 27
Monthly 37
daily 27
None 19

17% 25%

25%
33%

Weekly Monthly daily None

Interpretation:
25% respondent said that they saw Pepsi advertisement weekly, 33% monthly,
25% daily, 17% said none.

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5.For which one of the following purpose you visit in your product?

Purchasing branded goods 57

Purchasing local goods 23
Only gathering information 11
Others 9

9%
11%

57%
23%

Purchasing brand goods Purchasing local goods

Only gathering information Others

Interpretation:
57% respondent said that they purchase branded good 23% purchasing local goods,
11% only gathering information and 9% others reason.

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6.What according to you are attractive features that buy Pepsi product ?

Quality 32
Economy 49
Taste 19

19%
32%

49%

Quality Economy Taste

Interpretation:
32% respondent said that quality attract to purchase product, 49% economy and
19% respondent said taste is attract to purchase product of Pepsi

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7. Are you satisfy with product range of Pepsi?

Yes 91
No 9

9%

91%

Yes No

Interpretation:
Maximum respondent satisfied with product range of Pepsi but 9% respondent no
satisfied.

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8. according to you product range of Pepsi have changed the way the Consumer
satisfaction towards soft drink ?

Yes 71
No 29

29%

71%

Yes No

Interpretation:
71% respondent said that product range is changed the customer satisfaction
towards soft drink and 29 said no.

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9. Do you suggest the product of Pepsi to others

Yes 89
No 11

11%

89%

Yes No

Interpretation:
89% respondent said that they suggest to other to purchase of Pepsi product but
11% said no.

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10. How will you rate your present Pepsi product performance?
Poor 7
Satisfactory 23
Fair 27
Good 21
Very good 13
Excellent 9

9% 7%
13% 23%

21%
27%

Poor Satisfactory Fair Good Very good Excellent

Interpretation:
7% respondent rate poor for performance of Pepsi product, 23% satisfactory, 27%
fair, 21% good, 13% very good and 9% respondent rate excellent.

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FINDINGS

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 FINDINGS

 87% respondent said that they have idea to purchase Pepsi product but 13%
respondent have no idea to purchase Pepsi product.
 77% respondent said that they purchase Pepsi product but 23% said no.
 23% respondent said that TV advertisement help to decide to purchase Pepsi
product , 36% personal recommendation, 11% special offer, 17% radio
advertising, 7% news paper and 6% said that word of mouth is help to
purchase Pepsi product.
 25% respondent said that they saw Pepsi advertisement weekly, 33%
monthly, 25% daily, 17% said none.
 57% respondent said that they purchase branded good 23% purchasing local
goods, 11% only gathering information and 9% others reason.
 32% respondent said that quality attract to purchase product, 49% economy
and 19% respondent said taste is attract to purchase product of Pepsi
 Maximum respondent satisfied with product range of Pepsi but 9%
respondent no satisfied.
 71% respondent said that product range is changed the customer satisfaction
and 29 said no.
 89% respondent said that they suggest to other to purchase of Pepsi product
but 11% said no.
 7% respondent rate poor for performance of Pepsi product, 23% satisfactory,
27% fair, 21% good, 13% very good and 9% respondent rate excellent.

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SUGGESTIONS AND RECOMMENDATION

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 SUGGESTIONS AND RECOMMENDATION

 The brand loyalty for more Pepsi can be increased if the Quality and appearance
of the products are given due attention because Coca cola has captured a major
share of cement market.

 The switch over of the customers can be prevented if more of new products are
launched more frequently like coca cola which launches new products with
slight variations from the previous.

 Quality wise very good but it still needs improvements.

 The most selling pepsi product should be given schemes like some discounts
offer like diwali bumper sale offer.

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CONCLUSION

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 CONCLUSION

The report comes to the following conclusion

 The customers of Pepsi are brand loyal with only a small percent want to shift
over to other brands. Trying of other brands by customers is mainly because the
customer wants to try something new.

 The performance of Pepsi is fair in comparison to other.

 Taste is the basic feature influencing to built brand Image.

 The consumer of Pepsi is highly satisfied.

 The competition of by Pepsi is majorly with coca cola

 Due to high brand loyalty the customers of Pepsi recommend its product to
others.

 The customers are satisfied with the product range of Pepsi.

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 QUESTIONNAIRE
Name of the outlet: ...........................................................................................
Address: ............................................................................................................
1. Q. Which brand of soft drinks you deal in?
(a) Pepsi-Cola (b) Coca-Cola
(c) Both (d) Other
2. Q. Which brand of cola provides you better facility?
(a) Pepsi-Cola (b) Coca-Cola
(c) Both
3. Q. How many crates of Pepsi-Cola & Coca-Cola you sell/day?
(a) 0-1 crates (b) 1-2 crates
(c) 2-3 crates (d) 3 & above
4. Q. Which company’s signage you have in your outlet?
(a) Pepsi (b) Coca-Cola
(c) Both (d) No signage
5. Q. Which type of Signage in your outlet?
(a) Flex-Board (b) Dealer Board
(c) Glow Sign Board (d) Both
6. Q. Which company’s Visi - cooler & Oye you have in your outlet?
(a) Pepsi-Cola (b) Coca-Cola
(c) Both (d) Own
7. Q. In your opinion which medium is more effective for the sales
advertisement?
(a) Television (b) Magazines/Newspapers
(c) Display (d) Wall paintings/Hoardings

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8. Q. Do you think aggressive advertising further help you it increase the
sales volume of Cola?
(a) Yes (b) No
9. Q. What kind of promotional activities do you like most?
(a) Free bottle scheme (b) Prize
(c) Discount Crates (d) Other ............
10. Q. Your recommendation for further sales improvement in your locality?
..........................................................................................................
11. Q.Give me two suggestions for betterment of Pepsi-Cola?
(a)....................................................................................
(b)....................................................................................

Thanking you

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BIBLIOGRAPHY:
 Prof. A.K. Basu (Faculty Guide)
 Mr. Arun Kr. Singh (TDM)
 Mr. Binay Kr. (DEPT TDM)
 Mr. Banwari Shukala (CE)
 Marketing management (Phillip Kotler)
 Marketing Management (DEP. APP. ECO. & COM)
 Research Methodology (C.R. Kothari)
 Research Methodology (A.K. Singh)
 Business Research Methodology (DEP. APP. ECO. & COM)
WEBSITES:
 www.pepsico.com
 www.pepsizone.com
 www.cocacola.com
 www.amul.com
 www.parle.com
 www.fao.com
 www.notjustsurveys.com

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