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INTRODUCTION
1. 1 INTRODUCTION
Soft drinks are known as non alcoholic beverage containing syrup essence or fruit
concentrates that are mixed with carbonated water. Soft drinks are thirst quencher,
hygienic and a drink of enjoyment. Soft drinks industries are quit old. Today Coca
Cola (Coke) and Limca, Pepsi are the famous brands and both are multinational. The
production of soft drink industry is based on the franchise system, where the parent
companies supply the concentrates brand name and know how. The franchise unit that
is the bottling unit supplies the production to the market. Hence the bottlers become
very important for the successful operation of the soft drinks brand. The drinks are
called soft drinks, only to separate them from hard alcoholic drinks. This drinks do
not contains alcohol & broadly specifying this beverages, includes a variety of
regulated carbonated soft drinks, diet & caffeine free drinks, bottled water juices,
juice drinks, sport drinks & even ready to drink tea/coffee packs. So we can say that
soft drinks mean carbonated drinks. Today, soft drink is more favorite refreshment
drink than tea, coffee; juice etc. It is said that where there is a consumer, there is a
producer & this result into competition. Bigger the player, the harder it plays. In such
situation broad identity is very strong. It takes long time to make brand famous.
Definition of the Industry: The Soft Drink Industry consists of establishments
primarily engaged in manufacturing non-alcoholic, carbonated beverages, mineral
waters and concentrates and syrups for the manufacture of carbonated beverages.
Establishments primarily engaged in manufacturing fruit juices and non-carbonated
fruit drinks are classified in Canned and Preserved Fruit and Vegetable Industry.
Principal activities and products:
Aerated waters
Carbonated beverages
Mineral and spring waters
Soft drink concentrates and syrup
Soft drink preparation carbonating
The first marketed soft drinks (non-carbonated) appeared in the 17th century. They
were made from water and lemon juice sweetened with honey. In 1676, the
Companies de Limonadiers of Paris was granted monopoly for the sale of lemonade
soft drinks. Vendors would carry tanks of lemonade on their backs and dispensed cups
of the soft drink to thirsty Parisians. In 1767, the first drinkable manmade glass of
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carbonated water was created by an Englishmen by Dr. Joseph Priestley. Three years
later, the 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. In 1810, the first
U.S. patent was issued for the "means of mass manufacture of imitation mineral
waters" to Simons and Rundell of Charleston, South Carolina. Carbonated beverages
ABHINAV NATIONAL MONTHLY REFEREED JOURNAL OF REASEARCH IN
COMMERCE & MANAGEMENT www.abhinavjournal.com VOLUME NO.1,
ISSUE NO.3 ISSN 2277-1166 172 did not achieve great popularity in America until
1832, when John Mathews invented his apparatus for the making carbonated water.
John Mathews mass manufactured his apparatus for sale to others. The drinking of
either natural or artificial mineral water was considered a healthy practice. American
pharmacists, who were selling most of the mineral waters, started to add medicinal
and other flavorful herbs to the unflavored beverage. The early drug stores with their
soda fountains became a popular part of American culture. Customers wanted to take
the drinks home with them and the soft drink bottling industries grew from the
consumer demand.
It is expected that with the sort of mass advertising, reaching almost the entire
country and offering various varieties annual demand for the product is
expected to rise sharply in the times to come.
In any marketing situation, the behavioral / environmental variables relating to
consumers, competition and environment are constantly influx. The
competitors in a given industry may be making many tactical maneuvers in
market all the time. The may introduce or initiate an aggressive promotion
campaign or announce a price reduction. The marketing man of the firm has to
meet all these maneuver and care of competitive position of his firm and his
brand in the market. The only route open to him for achieving this is the
manipulation of his marketing tactics.
In todays highly competitive market place, three players have dominated the
industry; The New York based Pepsi Company Inc. The Atlanta based cocacola and U.K. based Cadbury Schweppes.
Through the globe, these major players have been battling it out for a bigger
chunk of the ever growing soft drink market. Now this battle has been
evolved up to India too with the arrival of these three giants.
Soft drink industry is on amazing growth; ultimately these are only one person
who will determine their fortunes. The Indian consumer. The real
War to quench his thirst has just begun.
As the soft drinks are consumed chilled so cooling them plays a vital role in
boosting up the sales. The brand, which is available chilled, gets more sales
then the one which is not, even if it is more preferred one.
This is the last but not the least factor, which affects the sale of the products of
a particular company.
fructose corn syrup, or a sugarsubstitute in the case of diet drinks. Soft drinks are
available in glass bottles, aluminum cans andPET bottles for home consumption.
Fountains also dispense them in disposable containers Non-alcoholic soft drink
beverage market can be divided into fruit drinks and soft drinks. Soft drinkscan be
further divided into carbonated and non-carbonated drinks. Cola, lemon and oranges
are carbonated drinks while mango drinks come under non carbonated category. The
market can also be segmented on the basis of types of products into cola products and
non-cola products. Cola products account for nearly 61-62% of the total soft drinks
market. The brands that fall in this category are Pepsi, Coca- Cola, Thumps Up, diet
coke, Diet Pepsi etc.Non-cola segment which constitutes 36% can be divided into 4
categories based on the types of flavors available, namely: Orange, Cloudy Lime,
Clear Lime and Mango. In 2011, soft drinks registered its highest off-trade value
growth rate for the review period. This growth was helped by high double-digit
volume sales growth in most categories as well as appreciably higher unitprices in
2011.
Behind the hype, in an effort invisible to consumer Pepsi pumps in Rs 3000 crores
(1994) to add muscle to its infrastructure in bottling and distribution. This is apart
from money that companys franchised bottles spend in upgrading their plants all this
has contributed to substantial gains in the market. In colas, Pepsi is already market
leader and in certain cities like NCR , Pepsi outlets are on one side & all the other
colas put together on the other. While coke executive scruff at Pepsis claims as well
as targets, industry observers are of the view that Pepsi has definitely stolen a march
over its competitor coke.
Apart from numbers, Pepsi has made qualitative gains. The foremost is its image. This
image turnaround is no small achievements, considering that since it was established
in 1989, taking the hardship route prior to liberalization and weighed down by export
commitments.
Now, at present as there are three major players coke, Pepsi and Cadbury and there is
stiff competition between first two, both Pepsi and coke have started, sponsoring local
events and staging frequent consumer promotion campaigns. As the mega event of
this century has started, and the marketers are using this event world cup football,
cricket events and many more other events.
Like Pepsi, coke is picking up equity in its bottles to guarantee their financial support;
one side coke is trying to increase its popularity through.
Eat Food, enjoy Food. Drink only coca cola. Eat cricket, sleep cricket. Drink only
coca cola. Eat movies, sleep movies. Drink only coca cola.
On the other side of coin Pepsi has introduced AMITABH BACHHAN for capturing
the lemon market through MIRINDA Lemon with zor ka jhatka dheere se lage.
But no doubt that UK based Cadbury is also recognizing its presence. So there is a
real crush in the soft drink market. With launch of the carbonated organize drink
Crush, few year ago in Banaras ., the first in a series of a launches , Cadbury
Schweppes beverage India (CSBI) HAS PLANNED:- The world third largest soft
drink marketers all over the country.CSBI o wholly owned subsidiary of the London
based $ 6.52billion. Cadbury Schweppes is hoping that crush is going well and well
not suffer the same fate as the Rs. 175 crore Cadbury indias apple drink Apella. CSBI
is now with orange (crush), and Schweppes soda in the market.
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As orange drinks are the smallest of non-cola categories that is Rs. 1100 crore market
with 10% market share and cola heaving 50% is followed by Lemon segment with
25%.
The success of soft drink industry depends upon 4 major factors viz.
Availability
Visibility
Cooling
Range
AVAILABILITY
Availability means the presence of a particular brand at any outlet. If a product is
now available at any outlet and the competitor brand is available, the consumer will
go for the at because generally the consumption of any soft drink is an impulse
decision and not predetermined one.
VISIBILITY
Visibility is the presence felt, if any outlet has a particular brand of soft drink sayPepsi cola and this brand is not displayed in the outlet, then its availability is of no
use. The soft drink must be shown off properly and attractively so as to catch the
attention of the consumer immediately Pepsi achieves visibility by providing glow
signboards, hoarding, calendars etc. to the outlets. It also includes various stands to
display Pepsi and other flavors of the company.
company market share has remained relatively constant between the big two over
the last decade, the Coca-Cola Company has had to struggle not to lose ground to its
arch-rival. Last year was not a good one for Coke in which it lost market share to
Pepsi.6 In addition, the Wall Street Journal reported that this was the third straight
year in a row that Coca-Cola has slipped in market share. A 0.1 or 0.2 % decline in
share for Coke brands may not sound like much but it adds up to a large sum in a
company with over $20 billion in annual revenues.7 This trend has been noticed by
the financial press and Wall Street insiders alike and has depressed the price of
Coca-Cola stock to $53 a share from its high of $83 in the early 1990s. This is
recorded in my SWOT analysis of the company in which a key weakness is listed as
weak share price and a key external threat is listed as the perceived strength of
PepsiCos financial position.8 3 Strategy into the Future In a recent interview, I
asked Diana Lopez, route manager at the Coca-Cola Bottling Company of Sylmar,
California, several questions related to Cokes forward looking strategy and how it
plans to position itself in the market. She was especially enthusiastic about new
products from the company like Powerade, a sports drink which is gaining in
popularity. She related that Powerade and Dasani Water, Cokes entry in that
category, are doing very well in machine, convenience, and supermarket sales in
southern California. When I asked about how Classic Coke was doing and whether
Pepsi posed a challenge to its position, her answer was that Coke has a very strong
following, as it always has and [people tell her] that Coca-Colas taste is what sells
the product. And small store owners tell me, especially in Latino neighborhoods that
the Coke brand means quality to them.9 According to Ms. Lopez, Coca-Cola
intends to build upon its success and popularity as the original cola drink which is
loved by consumers everywhere. In the soft-beverage working group, we have
indeed identified this feature, differentiation, as key to Cokes historical and
continuing success. If it aint broke, dont fix it, was the lesson of the companys
ill-fated experiment with New Coke in the 1980s. Moving ahead, Coca-Colas
forward-looking strategy is to position itself in the non-carbonated sector of the soft
drink market and take advantage of changing consumer tastes. Since taking over at
the helm two years ago, CEO Douglas Daft has endeavored to accomplish this as
well as to cut costs so that a leaner Coca-Cola can produce better numbers on the
bottom line. In the last two years he has slashed nearly 30,000 from the workforce.
In addition, he has placed renewed emphasis on thinking locally, acting 4 locally.
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This initiative has led to the transfer of quite a few executives from Atlanta to field
offices around the country with the mission to feel the pulse of local consumers and
serve them better.10 Daft has not always found his reform efforts smooth sailing,
however. Unlike the legendary Robert Goizueta who steered Coke through its most
successful years in the late 80s and early 90s, Mr. Daft has not been given
unconditional support by the board of directors. Specifically, Warren Buffet, whose
Berkeshire Hathaway has a major share of Coca-Cola stock, demonstrated that he
may keep Daft on a short leash by vetoing Dafts bid to acquire Quaker Oats last
year.11 Legal and Regulatory Issues As the multi-billion dollar market leader in the
soft-drink world, the Coca-Cola Company is burdened with the strengths and
weakness of empire. The company will continue to be held to close scrutiny, both
legal and financial. Any attempt to use Cokes enormous market power to leverage
strategic advantage in the marketplace will be met by resistance from competitors as
well as regulatory authorities. Take, for example a case in which the company was
sued for requiring exclusive advertising agreements with local supermarkets in
Texas and was required to pay a hefty fine and divest itself of distribution rights for
Dr. Pepper in that jurisdiction.12
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CHAPTER 2
REVIEW OF LITERATURE
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They came, spent, and conquered. The size of their combined business adds up to
more than Rs.5500 Cr. The equity investment put in it tots up to a humungous $ 1347
million (Rs. 5700 Cr.).Yet almost 10 year after Pepsi Coca-Cola Company entered
India, birth is yet to turn a profit. Their accumulated losses are estimated to over Rs.
800 Cr. In a bid to comer a larger market share, invariably, either Pepsi or Coke ends
up raising the stakes to a point where the math simply doesnt add up. Just that the
two cola giants have been in an unseemly hurry to grow the Indian market and, at the
same time deny each other any advantages, irrespective of whether it makes economic
sense. In the mid 90s breakeven was pegged at 40 million cases. Today, both players
together do 150 million cases, but break-even is still elusive. The battle spilled into
almost every area of operations in early 1999, that discounts were also unleashed. If
the industry norm was around three to four bottles free with every case, the Cola
majors began to offer six to seven bottles. In 2000 particularly in the month coke went
berserk, giving 500/0 discounts. Both cola warriors targeted a clutch of key accounts
about 67% of the total retail base, primarily restaurants, movie halls and hotels. In
many cases the owner would play one against the other and drive a hard bargain. In
many cases the cola companies, paid close to Rs. 100 per case of expected off take as
advance to secure a monopoly over the key account. The gross margins abase of
returnable glass bottles was just Rs. 40. Aluminum cans too suffered from the same
problem effective. Aluminum cans too suffered from the same problem. Now every
year, both companies had to invest in fresh glass capacity and crates. Back-of-the
envelop calculations suggested that to put an additional million bottles in the market
required close to Rs. 40 Reinvestment in glass and carats, and glass bottles had to be
replaced every four year after they had done 40 cycles, during which time
depreciation had been charged. Till the cola companies began to concentrate on the
urban centers. As soon as they pushed into the winter land, the first signs of problems
surfaced. In a state like Tamil Nadu the off take per 1000 people was barely 0.9 as a
result, when a Pepsi or a coke truck went into interior markets, the glass simply
wouldnt come black fast, either consumption was low or the volumes were being
split between the volumes were being split between the two competitors as a market.
But that would have been completely out of character for the company. It is a bit like
asking the Brazilian Soccer team to adopt German Style total football. Across global
market Pepsi has always reveled in grabbing share away from coke. But in India it
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finds itself in a peculiar position. It is the Numero Uno brand, outselling both coke
and Thums up put together. Thats helped Pepsis Indian team to build quite a
reputation. Pepsi has managed to constantly find ways to connect with the youth. So it
Coke is the universal drink, which cuts across-age groups, Pepsi is the icon of the real
cola aquifers Young-people between the age 0f 15-29.In order to fully understand the
competition between the two companies we have to under stand the soft drink
industry, for the same following should be considered: the dominant economic
factors, five competitive sources and SWOT analysis.
Market size, growth rate and overall profitability are three economic indicators that
can be used to evaluate the soft drink industry. The market size of this industry has
been changing. Soft drink consumption has a market share of 46.8% within the nonalcoholic drink industry, clearly, the soft drink industry is lucrative with a potential for
high profits, but there are several obstacles to overcome in order to capture the market
share. The growth rate has been recently criticized due to the U.S. market saturation
of soft drinks. Data monitor (2010) stated, Looking ahead, despite solid growth in
consumption, the global soft drinks market is expected to slightly decelerate,
reflecting stagnation of market prices. The change is attributed to the other growing
sectors of the non-alcoholic industry including tea and coffee (11.8%) and bottled
water (9.3%). Sports drinks and energy drinks are also expected to increase in growth
as competitors start adopting new product lines. Profitability in the soft drink industry
will remain rather solid, but market saturation especially in the U.S. has caused
analysts to suspect a slight deceleration of growth in the industry. Because of this, soft
drink leaders are establishing themselves in alternative markets such as the snack,
confections, bottled water, and sports drinks industries. In order for soft drink
companies to continue to grow and increase profits they will need to diversify their
product offerings.
An industry analysis through Porters Five Forces reveals that market forces are
favorable for profitability. The Five Forces Model provides a way to think about how
information resources can create competitive advantage. Using Porters Model one
can identify key sources of competition, uses of information resources to enhance the
competitive position against competitive threats.
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Power of Suppliers:
The inputs for Coke and Pepsis products were primarily sugar and packaging. Sugar
could be purchased from many sources on the open market, and if sugar became too
expensive, the firms could easily switch to corn syrup, as they did in the early
1980s.So suppliers of nutritive sweeteners did not have much bargaining power.
Selection of supplier
Industry Competitors: Revenues are extremely concentrated in this industry, with
Coke and Pepsi, together with their associated bottlers, commanding 90% of the case
market in 2011. Infact, one could characterize the soft drink market as an oligopoly, or
even a duopoly between Coke and Pepsi, resulting in positive economic profits
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CHAPTER 3
OBJECTIVE OF THE STUDY
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i. exe
CHAPTER 4
RESEARCH METHODOLOGY
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METHODOLOGY
Research is a common language refers to a search of knowledge. Research is
scientific & systematic search for pertinent information on a specific topic, infect
research is an art of scientific investigation. Research Methodology is a scientific way
to solve research problem. It may be understood as a science of studying how research
is dont scientifically. In it we study various steps that are generally adopted by
researchers in studying their research problem. It is necessary for researchers to know
not only know research method techniques but also technology.
The scope of Research Methodology is wider than that of research methods.
The research problem consists of series of closely related activities. At times, the first
step determines the native of the last step to be undertaken. Why a research has been
defined, what data has been collected and what a particular methods have been
adopted and a host of similar other questions are usually answered when we talk of
research methodology concerning a research problem or study. The project is a study
where focus is on the following points:
RESEARCH DESIGN
A research design is defined, as the specification of methods and procedures
for acquiring the Information needed. It is a plant or organizing framework for doing the
study and collecting the data. Designing a research plan requires decisions all the data
sources, research approaches, Research instruments, sampling plan and contact methods.
Research design is mainly of following types: 1. Exploratory research.
2. Descriptive studies
3. Casual studies
EXPLORATORY RESEARCH
The major purposes of exploratory studies are the identification of
problems, the more precise Formulation of problems and the formulations of new
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II.
III.
IV.
V.
VI.
VII.
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B)
PRIMARY
SECONDARY
Published Sources
Unpublished
Govt.publication
Mailed questionnaire
Sources
Commissions
Question filled by enumerators.
Private Publication
Research Institute
PRIMARY DATA
These data are collected first time as original data. The data is recorded as observed or
encountered. Essentially they are raw materials. They may be combined, totaled but
they have not extensively been statistically processed. For example, data obtained by
the peoples.
SECONDARY DATA
Sources of Secondary Data
Following are the main sources of secondary data:
1. Official Publications: Publications of the PEPSI & COKE and by the
corporate office of PEPSI & COKE.
2. Publications Relating to Trade: Publications of the trade associations, stock
exchange, trade union etc.
3. Journal/ Newspapers etc.: Some newspapers/ Journals collect and publish
their own data, e.g. Indian Journal of economics, economist, Economic Times.
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CHAPTER 5
ANALYSIS AND INTERPRETATION
24
STRATEGIES ADOPTED
BY PEPSI AND COKE
The Pepsi Process: Despite being a global brand, Pepsi has built its success on
meeting the Indian consumers needs, particularly in terms of making the brand
synchronize with localized events and traditions. Instead of harping on its global
lineage, ergo, it tries to plug into ethnic festivals, use the vernacular indifferent part of
the country, and blend into the local fabric. Pepsi is using both national campaignssuch as the Drink Pepsi, Get Stuff scheme, which offers large discounts on other
products to Pepsi-buyers as well as local .
The Coke Copy: Instead of creating a bond with the customers through small but
high-impact events, Coca-Cola chose to associate itself with national and international
mega events like the World Cup Cricket, 1996, and world cup football 1998. But now
coke is also entering into local actions. Coke is also trying to make their brand
synchronize with localized events traditions and festivals. Coca-Cola new tag line in
this advertisement is Real shopping, Real refresher. In this way Coke is copy Pepsi.
EMPOWERMENT
The Pepsi Process: Once of the strongest weapons in Pepsis armory is the flexibility
it has empowered its people with. Every manager and salesperson has the authority to
take whatever steps he, or she, feels will make consumers aware of the brand and
increase its consumption.
The Coke Copy: Flexibility is the weapon that Coca-Cola, fettered as it is by the need
for approvals from Atlanta for almost everything. In the past, this has shown up in its
stubborn insistence on junking the franchisee network it had acquired from Parle; in
25
its dependence on its own feedback mechanism over that of its bottlers; and on its
headquarters-led approach.
PRICE
The Pepsi process: Pepsi has consistently wielded its pricing strategy as in invitation
to sample, aiming to turn trial into addiction.
It launched the 500 ml bottle in 1994 at Rs. 8 versus Thums Ups Rs. 9, in April,
1996, its 1.5 litre bottle followed Coke into the marketplace at Rs. 30 Rs 5 less than
Cokes .But it couldnt continue the lower price positioning for long.
The Coke Copy: Initially, coke carbon-copied the strategy by introducing its 330ml
cans in January 1996, at an invitation price of Rs. 15 before raising it to Rs. 18. By
this time, it had realised that the Coca-Cola brand did not hold enough attraction for
customers to fork out a premium. The 200ml Coke, launched so far in parts of eastern,
western, and northern India, is priced at Rs. 5, lowering the entry-barriers.
PEPSI AND COKE MARKET SHARE IN INDIA
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COLA : 60%
CLEAR LEMON : 4%
Pepsi : 26.5
7-UP : 2.5%
Thums-up : 17.5%
Citra : 0.5%
Coke :10%
ORANGE : 16%
OTHERS : 8%
Mirinda : 7.5%
Fanta : 6%
Gold Spot : 1%
Crush : 1%
CLOUDY LEMON : 12%
Limca : 9%
Mirinda lemon + Dukes : 1.5%
Schweppes lemon : 0.5%
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In the 1970s, market research showed that consumers preferred the taste of Pepsi over
Coke. The Pepsi Challenge is still being conducted today. But Coke came up with
what is arguably the best of all cola commercials, the 1971 I'd Like to Buy the
World a Coke ad. This landmark was recalled in Christmas versions in 1983 and
1984, and a 1990 Super Bowl ad, which was enough to make some Baby Boomers
weep with nostalgia.
In the 1980's, Pepsi lined up the celebrities, starting with Michael Jackson, then
Madonna, Michael J. Fox, Billy Crystal, Lionel Ritchie, Gloria Estefan, Joe Montana,
and others. Coke signed on Michael Jordan, New Kids on the Block, Aretha
Franklin, Elton John, and Paula Abdul.
In 1985, responding to the pressure of the Pepsi Challenge taste tests, which Pepsi
always won, Coca-Cola decided to change its formula. Bill Cosby was the pitchman.
This move set off a shock wave across America. Consumers angrily demanded that
the old formula be returned, and Coca-Cola responded three months later with Classic
Coke. Eventually, New Coke quietly disappeared.
In 1991, Ray Charles sang, "You got the right one baby, uh-huh!" Also in the 1990s,
Cindy Crawford and the Spice Girls pitched Pepsi. And then Pepsi aired commercials
featuring the aggravating little girl (Hallie Eisenberg) with her troubling male
voice.
In the new century, both colas continue to battle it out on the television screen. And
celebrities continue to be important promoters. Recently, Pepsi has had commercials
by Bob Dole and Faith Hill, among others.
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55%
45%
Figure 4
30
Television Advertising
Newspaper Advertising
Outdoor Advertising
Sales Promotion
Figure 5
31
45%
5%
20%
30%
Analysis- the survey showed that the t.v. advertising was most
effective strategy. The wide reach of t.v. affected the preference of
consumer. Another effective strategy was sales promotion (30%)
which included discounts, displays etc.6. BRAND SWITCHING
51%
49%
Figure 6
32
Analysis It was found that the price as a single factor was not very
effective since the switching gap between switches and brad loyals is
very narrow.7. MOST EFFECTIVE ADVERTISING
Pepsi Co.
Coke Co.
60%
40%
Figure 7
33
Analysis- It was found that pepsi has more effective advertising than
coke.8. CREATIVE AND APPEALING ADVERTISING
Pepsi Co.
Coke Co.
70%
30%
Figure 8
34
Analysis-it was found that pepsi has more creative and appealing
advertising than coke.9. WHICH COMPANY PROVIDES
55%
45%
Figure 9
Analysis- we find that pepsi company provide more innovative and
exciting offers than coke.
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Figure 10
36
56%
35%
9%
Pepsi
Coke
Local Brand
44%
51%
5%
Figure - 11
Analysis- It was found that coke has more market share percentage in all
over India than pepsi and local brand.
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SLOGANS
It's clear in looking at the slogans over the years that Coke and Pepsi have very
different targeting strategies. Coke is touting itself as the original, the authentic, and
appealing to a sense of tradition, positioning itself as an integral part of daily
American life. Pepsi, on the other hand, is promoting itself as something new, young,
and hip, which seems a little odd after over 100 years. But Coke was first, after all.
Pepsi has always targeted the youth market more aggressively than Coke.
COCA-COLA
1886 - Drink Coca-Cola
1904 - Coca-Cola Satisfies
1904 - Delicious and Refreshing
1905 - Coca-Cola Revives and Sustains
1905 - Good All the Way Down
1906 - The Drink of Quality
1906 - The Great National Temperance
1907 - Delicious Coca-Cola, Sustains, Refreshes, Invigorates
1907 - Cooling . . . Refreshing . . . Delicious
1908 - Sparkling - Harmless as Water, and Crisp as Frost
1909 - Delicious, Wholesome, Refreshing
1910 - It Satisfies
1910 - Quenches Thirst as Nothing Else Can
1911 - It's Time to Drink Coca-Cola
1911 - Real Satisfaction in Every Glass
1912 - Demand the Genuine - Refuse Substitutes
1913 - The Best Beverage Under the Sun
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CHAPTER 6
FINDING
40
1.
Once a day
15%
Twice a day
5%
Once a week
30%
Other
50%
Figure-1
Analysis- we find that the respondents who were drinking cold drinks once a day
were 15% whereas the respondents prefering the soft drinks once a week and other
30% and 50% respectively.
This shows that very few respondents drink soft drinks (5%) twice a day.
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Pepsi
60%
Coke
40%
Figure 2
Analysis-We found that pepsi is more preferable brand than coke.
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Promotion
10%
Packaging
10%
Taste
70%
Price
10%
70%
80%
60%
40%
20%
10%
10%
10%
0%
PromotionPackaging
Promotion
Taste
Packaging
Figure 3
43
Taste
Price
Price
Analysis- We found that taste is the most important factor in the brand
preferences whereas other factor such as promotion, packaging taste and price
were somewhat equally affecting.BRAND PREFERENCES
In a survey done by A & M magazines on the best marketing companies in India.
Pepsi and Coca-Cola were also entered. The results were as follows:
Pepsi
4th
Coca-Cola
11th
Pepsi
7th
Coca-Cola
11th
This shows that both the companies are paying more attention to the marketing of
their products. Pepsi is higher up on the scale than Coca-Cola. We can see that by the
brilliant advertising done by Pepsi, which can be seen on every hook and corner of
NCR. The consumers also prefer Pepsi advertisements and other activities of Pepsi, to
that of Coca-Cola.
The Indian soft drinks market is at 140 million cases per year. This is very low, even
as compared to Pakistan and Bangladesh. All these factors together have contributed
to a 20% growth in the soft drinks industry.. If this demand continues to grow at 20%
grow at 20% annually, within 10 years the volumes could reach 1 billion cases. This
kind of growth is the reason for the entry of the two giants of the soft drink industry of
the world.
Coca-Cola
Pepsi
Coca-Cola and Pepsi together control 97% of the 4 entire Indian markets. The rest of
the 3% is shared by companies like Cadbury-Schweppes and Campa-Cola. The total
no. of case sold is 140 million of these 77 million cases of Cola drinks are sold and 63
million of non-cola drinks. There is a rapid increase in the sale of cola soft drinks.
Whereas in 1990, they accounted for a third of all soft drinks sold, now their share is
well over half. Also cola sales are growing at a faster rate than non-colas. One of the
reasons for this could be the aggressive marketing strategies for Cola drinks by Pepsi
and Coca-Cola.
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CHAPTER 7
LIMITATION
45
It is well known fact that constraint and limitations are bound to be present in any
study; Following are some limitation as: The survey has been conducted only in few areas of Aurangabad due to
limited time.
It is very difficult to make people understand the significance of conducting
survey.
Lack of retailers interest to answer the questions is also an important
limitation.
Lack of knowledge of area has affected the research.
The information given by the client may be false and biased
Time period is short and resource constraints.
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CHAPTER 8
RECOMMENDATIONS
47
48
Availability is a major factor, which makes the consumer buy a soft drink.
Soft drinks should be made available more readily than present. There are
only 300, 000 retailers stocking soft drinks in India. Thus retailing outlets
should be increased. Also related to this point, is vending machines. In
developed machines, vending machines are kept in all consumer areas,
like super markets, schools, amusement parks, local markets, etc. These
tempt a person into buying the soft drink. So if vending machines are put
in strategic areas, it would definitely increase consumption of soft drinks.
Soft drink cans which are very convenient, as the consumer can take them
anywhere, unlike a bottle, are very expensive retailing from Rs. 15-Rs.
18. To increase sale of cans, this price should be brought down.
Innovations increase sales of company. For e.g. fountain Pepsi increased
sales of Pepsi Cans increased sales of Coca-Cola. Thus the companies
should constantly come out with innovative ideas.Example-300 ml plastic
bottles, which the consumer can take with him, unlike the glass bottles,
which he has to return. Plastic bottles can even be used again by
households for various purposes.
The companies should conduct studies to get to know about consumer
habits. For e.g. Coke knows that Americans see 69 of its commercials
every years , put 5.2 ice cubes in a glass and prefer cans to pop out of
vending machines at a temperature of 35 degrees.
If the companies know all this and more about Indian consumer
behaviour, it could tell them how to sell their drinks, so as to increase
sales.
It is seen In India, that people prefer having their drinks with or after
food. Companies could have commercials which show people enjoying
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their drink with a good meal, so that consumers associate drinking soft
drinks while having food.
Companies should try to educate the consumer about the health related subject. For
e.g: Limca is recommended to patients by doctors.
Cola drinks are known to be very fattening.
Companies should try to build high brand equity. This provides a number of
advantages to the company.
The company enjoys reduced marketing costs because of high level of
consumer brand awareness and loyalty.
The company will have more trade leverage in bargaining with distributors
and retailers since the customer expects them to carry the brand.
The company can change a higher price than its competitors because the brand
has higher perceived quality.
The company can more easily launch brand extension.
Television advertising seems to make a impact on the consumers (based on
questionnaire answers) so companies should concentrate more on television
advertisements.
PepsiCo and Coca Cola (I) Ltd. should reduce their massive spending on sponsoring
events and try and channel this money into more productive activities, like innovative
packaging etc.
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It is recommended that company should introduce more and more customer oriented
schemes and contexts. For e.g. Pepsis new campaign Pepsi cool mal in which they
are giving free gifts to their customers.
The company should maintain a small group of missionary sales man whose
functions should be to guide distributors and retailers, keep a constant watch over the
prevailing situation to provide the continuous feedback to the company.
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CHAPTER 9
CONCLUSION
52
Pepsi is the market leader in terms of market share in Ambala, but comes second to
Coca-Cola in India. Pepsis main target is obviously to be the market leader and leave
its nearest competitor, Coca-Cola, far behind. To achieve this Pepsi seems to be
relying on mass advertising. They spend about 50-60 crore rupees annually on
marketing activities. The consumer is bombarded with Pepsi advertisements, sign,
logos etc., everywhere.
Pepsis core market is the young adult and Pepsi is taking great measures to change
the perception of these young-adults., Pepsi wants that these consumers should
associate all colas as Pepsi, the brand Pepsi and cola should be synonymous with each
other. This they are trying to do by getting the heros of these consumers to endorse
their product e.g. Sachin Tendulkar and also by advertising for and by youngsters.
Pepsi drinks are available in almost the whole of India, this shows the importance
paid to distribution. Brand loyalists are very few in the market. Thus the drink should
be easily available, so that consumers cannot shift their preferences.
Consumers
For the purpose of the study, questionnaires were prepared for the Consumers. Care
was taken to interview all types of consumers, i.e.,:
a. Different age groups
b. Males and females
c. People from different localities, etc.
In all about 60 consumers were interviewed. The conclusions that one can draw from
these answers provided by the consumers showed that marketing activities do form a
major part of the decision.
One thing that was common amongst all the consumers who were once a day or once
a week. The most important factor the influences a customer while buying a soft-drink
was taste. This was true for all the consumers who were interviewed. The rest of the
conclusions as deducted from the questionnaires are as follows:
The younger generation preferred soft drinks to the older generation.
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a. Children up to 15 years of age liked to have soft drinks upto 2-3 times a day.
b. Young adults liked to have soft drinks up to 1-2 times a day.
c. Adults liked to have soft drinks about once or twice a week.
Children preferred Coca-Cola Fanta, Mirinda orange. Young adults liked Pepsi. The
older generation preferred Coca-Cola, Limca & Mirinda Lemon.
The reason given for choice of favourite soft drink was taste and easy availability.
Only if the consumer liked the taste of drink, he would have it again. 95% of the
consumers felt that marketing strategies of the company did affect the sales of their
soft-drink.
Marketing strategies made the consumer try a drink for the first time. The second time
round it was the consumers choice himself and not strategy could affect that.
Youngsters were more acceptable to change. They tried different drinks, Cola and
non-Cola. Adults stick to one and they prefer drinks that do not affect their health, like
Limca.
Major number of people found television advertising to be the most effective. Young
and the old, all liked to watch the advertisements on television.
Sponsoring events, outdoor advertising and sales promotion schemes were second
choice of the consumers. Under television advertising, Pepsi came in as the number 1
favorite of the people the advertisement of Shah-Rukh Khan and the dog was the
favorite of the consumers. Their new advertisement of Mirinda Lemon is also lifted
by the people. The advertisement that came in second was, the Coca-Cola
advertisement of the people Cricket and the song Must-Kalander going on at the back.
These, advertisement remained most in the minds of the people. Most of the
consumers felt that Pepsi was the market leader in the soft-drink industry, in NCR as
well as in India. Whereas while Pepsi is the leader in NCR, in India Coca-Cola is
number one.
99% of the consumers interviewed felt that the marketing strategies of the Coca-Cola
and Pepsi have helped them in attaining the huge market share that they possess.
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QUESTIONNAIRE
55
Q.1.
Q.2.
Q.3.
WHAT IS THE
PREFERENCE?
MOST
IMPORTANT
FACTOR
IN
BRAND
More Popular
Packaging
Taste
Price
Q.4.
Q.5.
Q.6.
Q.7.
Q.8.
Q.9.
57
BIBLIOGRAPHY
58
Business Today
Business world
Out look
Times of India
Course pack of Rai university
www.Pepsico.indialtd
Research methodology- By C. R. Kothari
www.businessdictinary.com
Lewin, Kurt (1936), Principles, of Toplogical Psychology.
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