Copetitive Analysis of Coca Cola and Pepsi

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A

PROJECT REPORT
ON
COMPARATIVE ANALYSIS ON MARKETING
STRATEGIES OF COCA COLA AND PEPSI

A report submitted to the partial fulfillment in the requirement of the three years full time graduate
degree of Bachelor of Business Administration (BBA) from Pt. DDUMC, Meerut, UP

BBA VI SEMESTER
[Session 2016-2019]

UNDER THE GUIDANCE OF: SUBMITTED BY:


DR. SAILESH GUPTA SHAGUN CHAUHAN
ROLL NO.: 169739147
SIMRAN JEETKAUR
ROLL NO.:169739177

Pt. DDUMC
17, Mall Road, Meerut Cantt., Meerut, UP
ACKNOWLEDGEMENT

Presenting a project of this type is an arduous task, demanding a lot of time. We cannot in

full measure appreciate and acknowledgement the kindness shown and help extended by

various persons in this endeavor. We will remember all of them with gratitude.

We are always beholden to my God, for always being with us and showing us the right

ways, our family, for always doing favors to us and our friends and colleagues

consistently helped with encouragement and criticism throughout the project work, for

always lifting our sights to higher vision, raising our personality beyond normal

limitation and for realizing us and our strengths and potential, as We did not always

welcome him exhortation, “try again; you can do better.” But this project owes a great

deal to it – and so do We.

UNDER THE GUIDANCE OF: SUBMITTED BY:


DR. SAILESH GUPTA SHAGUN CHAUHAN
ROLL NO.: 169739147
SIMRAN JEETKAUR
ROLL NO.:169739177

2
PREFACE

Title Page No.

● ABSTRACT 4

● NTRODUCTION 5-10

● COMPANY PROFILE 11-49

▪ HISTORY OF COCA-COLA IN INDIA

▪ MISSION, VISION & VALUES

▪ ABOUT PEPSICO.

▪ COMPARATIVE ARENA

▪ PRODUCT PROFILE

➢ RESEARCH METHODOLOGY 50-58

➢ OBJECTIVES 59-60

➢ DATA ANALYSIS 61-78

➢ CONCLUSION 79-80

➢ FINDINGS 81-82

➢ LIMITATIONS 83-84

➢ SUGGESTIONS & RECOMMENDATION 85-87

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➢ BIBLIOGRAPHY 88-90

ABSTRACT

As an integral part of the course curriculum, all BBA students are required

to undergo summer training in an industry organization. The main objective

of this training is to supplement the student’s theoretical knowledge with a

practical exposure to the working environment of an organization.

This programmed enhances the student’s capability to cope up with the

uncertainties and challenges, which are the part and parcel of every

organization.

The subject of my research was “Comparative Analysis on Marketing

Strategies of Coca Cola and Pepsi”.

I feel highly gratified in this report.

It has been my constant endeavor to present this report in the most

systematic and analytical manner.

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INTRODUCTION

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INTRODUCTION

I have done two surveys, one is Route Ride Survey and another one is

brand and pack visibility survey.

In trade channels, I counted the types of channel from where the cold

drink is selling for example like Pan Shop, Tea Stall etc. and also the

average sale of the cold drink at that shop. I have also found out the

percentage monopoly of coke and Pepsi in these outlets. After that I have

done another survey related to visibility of products In these outlets in which

we covered each and every retailers at every route and we have to check that

all the brands and packs of coke are visible or not or which one is visible in

comparison to Pepsi. At every route we found some problems related to

shortage of brands and problem of improper visit of company officer’s to the

retailers that’s why the retailers prefer to sell Pepsi in comparison with

Coke. And the other problem is that the retailers getting product at cheaper

cost in comparison form what they are getting from distributor.

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Hindustan Beverage Limited is a franchisee of Coca cola international

which manufacture coca cola products coca cola industry is a U.S.A. based

multinational company which produce soft drink and also interfere in the

fields of food (Snacks). When India left the ban from the international soft

drink manufactures coca cola was the first company who joined Indian

market with their tow flavor i.e. coca cola (Cola), 7 UP (clear lemonade).

That time COCA COLA have competition with only Thumps Up. As coca

cola starts to dominate the thumps up products. In 1993 Coca cola

international entered the Indian market and had collaboration with thumps

up. Now thumps up are the owned brand of coca – cola.

They have joined Indian market with coke (cola) and Fanta (orange). At

present there is a great competition in the field of soft drink industry and

advertising war is continue between COCA COLA & PEPSI. Both

companies want to dominate each other in advertising world. COCA COLA

is one step ahead the Pepsi.

They are the global sponsors of cricket world cup 1999 while the coke was

the official cold drink of wills world cup 1996. But COCA COLA prepare a

brilliant aid with slogan “Nothing official about it” and gain great

advantages. This competition is very god soft drink industry and consumer

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as well. At present Coca cola and coke have balanced market share in Indian

market.

Coca cola also brought in celebrities which further emphasized their

business all over India. The most effective was with the introduction of

Amitabh Bachan, Shahrukh Khan, Kareena Kapoor and Ricky Martin.

Further, coca cola is used to sponsoring various corporate and cultural

events all over India, which help to create brand awareness among to user

groups.

HISTORY

Soft drink includes all type of non-alcoholic, carbonated, flavored or


otherwise sweetened beverages. Soft drinks are mostly packaged in 300 ml

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bottles & come in variety of flavors. They are all artificially sweetened. The
soft drink industry has been undergone with many transformations with
changing consumer demand, government policies & innovation in
packaging.
With introduction of fruit based soft drink packaged in carbonated cartoons
known as “tetra packs”, the bottled soft drink market has undergone a slight
decrease in demand. With the entry of PEPSI COLA & COCA-COLA India,
the Indian marketing is witnessing the giant advertisement war between two
enemies.

The history of cold drinks began with the end of last century. Its history
dates back to the civil was in U.S.A in 1860. At that time people were
suffering from many diseases.

Problem at that time was how the cure all diseases since no remedy were
present at that time. It was a big question for American’s. So in 1885 MR.
JOHN PAIMWARTION, who lived in Antonica made a drink and registered
it as French wine cola. In the beginning this drink was made with the
mixture of cocaine and alcohol but later on it was converted into a soft drink.
Now it was renamed as COCA-COLA. A new brand named PEPSI COLA
came in the year 1887.

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HISTORY OF SOFT DRINK IN INDIA

Around 1948 the first branded soft drink came in Indian market. The soft
drink was named GOLD SPOT. Before COCA-COLA entered the country to
dominate the scene in 1950’s. Parle exports pvt. Limited was the first Indian
company to introduce a lemon soft drink, this drink was known as Limca
and it was introduced in 1970’s. However, before this they had introduced
Cola Pepino which was withdrawn with the face of through competition
from COCA-COLA.

In the year 1997 COCA-COLA left Indian market and this brought in an
opportunity to various Indian companies to show their caliber. At this time a
new soft drink was introduced by Parle products and this was named
THUMS-UP. This was a cola drink which had a burnt sugar colour. This
drink was introduced with a mighty saying happy Days are Here Again”, as
is happy days went away with COCA-COLA. There were another company
named CAMPA-COLA along with the lemon & and orange flavors.
Just after this many more companies entered the Indian soft drink market. A
soft drink named DOUBLE SEVEN had been introduced by a company
MODERN BAKERS. Another company MOHAN MEAKINS also came
with a soft drink named MARY & PUCK UP. MACDOWELL came with
THRILL, RUSH, SPRINT.
Previously there was no competition in the Indian soft drink market but with
all these companies in the Indian market a though competition was taking
place with high voltage advertisements. In the year 1998 PEPSI was given
permission to sell its soft drinks in the Indian market by the government of
India.

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COMPANY

PROFILE

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HISTORY OF COCA-COLA IN INDIA

The COCA-COLA Company entered India in 1950’s. It setup four bottling


plants at Mumbai, Delhi, Calcutta and Kanpur. In 1950’s there were
negligible companies in the Indian market therefore COCA-COLA did not
face much competition & they were accepted in Indian market more easily.
This brand was accepted by all age group. The full credit must go to COCA-
COLA for making soft drink popular in India. By the year 1977 COCA-
COLA left India following public disputes over share holding structure &
import permit. As per FERA regulations the company was required to
Indianise or close operations by May 5, 1978. Yet strangely enough the
companies operation came to an end in July 1977.

COCA-COLA came back in the year 1993 after liberalization and was
launched at Agra with the slogan “Old wave had come to India again”. At
the time the Parle was the leader in the soft drink market and had more than
60% of the total share in soft drinks. COCA-COLA joined hands with Parle
& re-entered India after 17 years. By striking a $40 million deal with Parle.
Coke almost made a clear sweep, and made its goal as “to become an all
time, all occasions drink not special treat beverage”.

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COCA COLA IN INDIA

Coca-Cola, the corporation nourishing the global community with the


world’s largest selling soft drink concentrates since 1886, returned to India
in 1993 after a 16 year hiatus, giving a new thumbs up to the Indian soft
drink market. In the same year, the Company took over ownership of the
nation’s top soft-drink brand and bottling network. It’s no wonder our
brands have assumed an iconic status in the minds of the world’s consumers.

A Healthy Growth To The Indian Economy

Ever since, Coca-Cola India has made significant investments to build and
continually consolidate its business in the country, including new production
facilities, waste water treatment plants, distribution systems, and marketing
channels.
Coca-Cola India is among the country’s top international investors, having
invested more than US$ 1 billion in India in the first decade, and further
pledged another US$100 million in 2003 for its operations.

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A Pure Commitment to The Indian Economy
The Company has shaken up the Indian carbonated drinks market greatly,
giving consumers the pleasure of world-class drinks to fill up their
hydration, refreshment, and nutrition needs. It has also been instrumental in
giving an exponential growth to the country’s job listings.
Creating Enormous Job Opportunities

With virtually all the goods and services required to produce and market
Coca-Cola being made in India, the business system of the Company
directly employs approximately 6,000 people, and indirectly creates
employment for more than 125,000 people in related industries through its
vast procurement, supply, and distribution system.

The Indian operations comprises of 50 bottling operations, 25 owned by the


Company, with another 25 being owned by franchisees. That apart, a
network of 21 contract packers manufacture a range of products for the
Company.

On the distribution front, 10-tonne trucks – open bay three-wheelers that can
navigate the narrow alleyways of Indian cities – constantly keep our brands
available in every nook and corner of the country’s remotest areas.

These are only some of the facts that speak about our commitment to the
growth of the Indian Economy.

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CORPORATE GOVERNANCE

INDIA ADVISORY BOARD (IAB)


Coca-Cola India has set up India Advisory Board to guide the company on
various issues including future strategies,corporate citizenship, and corporate
governance.

Mr. Naresh Chandra (Chairman):


Former Ambassador of India to the US during the trying times of
Comprehensive Test Ban Treaty, dealing with the Nuclear Tests. Recently,
he headed the Government of India committee on Corporate Governance.
Other offices held by him include Governor of Gujarat, senior advisor to the
Prime Minister. In 1990 he became Cabinet Secretary, the highest post in the
Indian Civil Service.
Gen. V.P.Malik (retired), chairman of Coca-Cola India's Advisory Council
for Environment & Sustainability (ACES) along with other ACES members,
School authorities & Coca-Cola officials dedicating a community project of
Rain Water System at Rajpal DAV Public School, Dayanand Vihar, New
Delhi.

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General V.P. Malik (Retd):
General Malik is the Former Chief of Indian Army, a force of over 1.1
million people. He oversaw intensified anti-terrorist operations in Jammu
and Kashmir and North East India. He was awarded the Ati Vishista Seva
Medal in 1986 as well as the Param Vishista Seva Medal, the highest
national award for distinguished services in India in 1996.

Mr. Deepak Parekh:


Chairman & Managing Director, HDFC, India´s largest housing finance
company with a balance sheet size of US $ 6.1 billion. Parekh´s vision is to
make HDFC the GE Capital of India. In recent years he has been the
unofficial crisis consultant to the Government of India. He has been member
on the Malhotra Committee on Insurance Reforms, Narasimham Committee
on Banking Reform, Infrastructure task force of the Prime Minister´s office,
chalked out the rescue plan for UTI and was involved in resolving
contentious issues on Telecom Licensing.

Mr. S M Datta:
Eminent Management professional, Mr. Datta was formerly Chairman of
Unilever in India (1990-1996). He has participated in various committees of
the Government of India in areas of Science and Technology, and Food
Processing. Currently, Mr. Datta is chairman of Castrol India Limited,
Phillips India Limited & Tata TD Waterhouse Company Private Limited.

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Mr. N K Singh:
Is a retired IAS Officer and has held several important positions in the
Central and State Government, including that of Additional Secretary
Economic Affairs, Revenue Secretary, Expenditure Secretary, Secretary to
the Prime Minister as his main Economic Advisor and Member-Planning
Commission, in charge of overall macroeconomic policies, medium term
economic strategy and infrastructure.

Mr. Sunil Munjal:


Managing Director, Hero Group, heads the worlds largest manufacturer of
two wheelers. He is head of Confederation of Indian Industries - Economic
Affairs Committee, and represents the business viewpoint as member of
several committees of the Government of India.

Mr. Amjad Ali Khan:


Eminent Musician. Hailed as One of 20th centurys greatest masters of the
Sarod: Songlines World Music Magazine, UK 2003. He is a recipient of
Padma Vibhusan (highest civilian award), UNICEFs National
Ambassadorship, The Crystal Awards by the World Economic Forum,
UNESCOs Award.

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MISSION, VISION & VALUES

The world is changing all around us. To continue to thrive as a business over
the next ten years and beyond, we must look ahead, understand the trends
and forces that will shape our business in the future and move swiftly to
prepare for what's to come. We must get ready for tomorrow today. That's
what our 2020 Vision is all about. It creates a long-term destination for our
business and provides us with a "Roadmap" for winning together with our
bottler partners.
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Our Mission
Our Roadmap starts with our mission, which is enduring. It declares our
purpose as a company and serves as the standard against which we weigh
our actions and decisions.
● To refresh the world...
● To inspire moments of optimism and happiness...
● To create value and make a difference

Our Vision

Our vision serves as the framework for our Roadmap and guides every
aspect of our business by describing what we need to accomplish in order to
continue achieving sustainable, quality growth.
People: Be a great place to work where people are inspired to be the best
they can be.

Portfolio: Bring to the world a portfolio of quality beverage brands that


anticipate and satisfy people's desires and needs.
Partners: Nurture a winning network of customers and suppliers, together we
create mutual, enduring value.

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Planet:Be a responsible citizen that makes a difference by helping build and
support sustainable communities.
Profit: Maximize long-term return to shareowners while being mindful of
our overall responsibilities.
Productivity: Be a highly effective, lean and fast-moving organization.

Our Winning Culture


Our Winning Culture defines the attitudes and behaviors that will be
required of us to make our 2020 Vision a reality.

Live Our Values

Our values serve as a compass for our actions and describe how we behave
in the world.
Leadership: The courage to shape a better future
Collaboration: Leverage collective genius
Integrity: Be real
Accountability: If it is to be, it's up to me
Passion: Committed in heart and mind
Diversity: As inclusive as our brands
Quality: What we do, we do well

Focus on the Market


● Focus on needs of our consumers, customers and franchise partners
● Get out into the market and listen, observe and learn
● Possess a world view
● Focus on execution in the marketplace every day

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ABOUT PEPSICO INDIA

PepsiCo entered India in 1989 and has grown to become the country’s
largest selling food and Beverage Company. One of the largest multinational
investors in the country, PepsiCo has established a business which aims to
serve the long term dynamic needs of consumers in India.
PepsiCo nourishes consumers with a range of products from treats to
healthy eats that deliver joy as well as nutrition and always, good taste.
PepsiCo India’s expansive portfolio includes iconic refreshment beverages
Pepsi, 7 UP, Mirinda and Mountain Dew, in addition to low calorie options
such as Diet Pepsi, hydrating and nutritional beverages such as Aquafina
drinking water, isotonic sports drinks - Gatorade, Tropicana 100% fruit
juices, and juice based drinks – Tropicana Nectars, Tropicana Twister and
Slice, non-carbonated beverage and a new innovation Nimbooz by 7Up.
Local brands – Lehar Evervess Soda, Dukes Lemonade and Mangola add to
the diverse range of brands.
PepsiCo’s foods company, Frito-Lay, is the leader in the branded salty
snack market and all Frito Lay products are free of trans-fat and MSG. It
manufactures Lay’s Potato Chips, Cheetos extruded snacks, Uncle Chips
and traditional snacks under the Kurkure and Lehar brands and the recently
launched ‘Aliva’ savoury crackers. The company’s high fibre breakfast
cereal, Quaker Oats, and low fat and roasted snack options enhance the
healthful choices available to consumers. Frito Lay’s core products, Lay’s,
Kurkure, Uncle Chips and Cheetos are cooked in Rice Bran Oil to
significantly reduce saturated fats and all of its products contain voluntary
nutritional labeling on their packets.

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The group has built an expansive beverage and foods business. To support
its operations, PepsiCo has 36 bottling plants in India, of which 13 are
company owned and 23 are franchisee owned. In addition to this, PepsiCo’s
Frito Lay foods division has 3 state-of-the-art plants. PepsiCo’s business is
based on its sustainability vision of making tomorrow better than today.
PepsiCo’s commitment to living by this vision every day is visible in its
contribution to the country, consumers and farmers.
Quick Facts
● PepsiCo established it's business operations in India in 1989
● Invested more than USD 1 Billion since inception
● Well known and loved global brands that delight and nourish
consumers
● It provides direct and indirect employment to 150,000 people in India
● It has more than 36 bottling plants including 13 Company & 23
Franchise owned ones
● 3 State-of-the-art food plants in Punjab, Maharashtra and West Bengal

Our Mission
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"To be the world's premier consumer products company focussed on
convenience food and beverages. We seek to produce healthy financial
rewards to investors as we provide opportunities for growth and enrichment
to our employees, our business partners and the communities in which we
operate. And in everything we do, we strive for honesty, fairness and
integrity."

Our Vision

"To build India’s leading total beverage company, delighting consumers by


best meeting their everyday beverage needs, and stakeholders, by delivering
performance with purpose, through our talented people."
PepsiCo Sustainability Vision

"PepsiCo’s responsibility is to continually improve all aspects of the world


in which we operate – environment, social, economic – creating a better
tomorrow than today"

Tomorrow better than Today

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Coke vs Pepsi
We often have a Pepsi or a Coke when we have lunch, hang out with friends,
or even just simply when watching the television. Sometimes we go in for
the taste, sometimes for the sheer pleasure of gulping it down, and may be
even due to its popularity. Though many are not choosy, some prefer to have
only one out of the drinks mostly.

The first way to distinguish between a can of coke and Pepsi is the brand
color. Cokes come in red cans, while Pepsi comes in blue cans. Though the

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drink has the same color, the branding is always in the specified red and blue
colors.
The tastes of both the drinks are distinct and it is easy to make out the
difference. Pepsi is a little more sweet in taste than the coke. This is due to
the addition of the artificial sweeteners to it. You will be able to make it
right when you take a sip of the drink. The additions of the sweeteners leave
a mild chemical taste after you drink it. Compared to Pepsi, coke does not
have that chemical after taste owing to the less artificial sweeteners added.
When you drink coke you feel more of that cola flavor in it, while with
Pepsi, you get a fruity or fluid sort of taste.

The carbonation levels of both the drinks also are different. It is higher in
coke. So when you take the first sip of the coke, you get that fizzy effect.
This frizz is less in Pepsi. The fizzy nature can be identified by the bubbles
formed when you first open the bottle or just simply shake. It is more in the
coke. And you do get that bubbly taste down your throat with a Pepsi. Coke
is smoother. The bubbles disappear quickly as the fizz escapes from the
coke.

The basic ingredients of Pepsi are carbonated water, sugar, fructose corn
syrup, caffeine, colorings, citric acid, and other natural flavors. When the
coke was launched, its main ingredients were caffeine and a small amount of
cocaine. The other ingredients, like the Pepsi are carbonated water, sugar,
phosphoric acid, and other natural flavorings.

When it comes to the branding part, the logo of coke has not varied much
since its inception. May be a minor change in the font is all what changed.

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This has helped it to stay on in the minds of people. But Pepsi, on the other
hand, has come up with various logos and slogans. This kept on changing
almost yearly. Though the company and market analysts claim that this is in
tune with the changing trends in the society, many do not accept this. Each
time they see a new logo, they are afraid to try it thinking that the whole
drink has changed.

Summary:
1.Pepsi uses blue color for branding and Coke uses red.
2.Pepsi is sweeter than coke.
3.The carbonization level is higher in Coke than Pepsi.
4.The branding techniques are used more by Pepsi Company than the Coke

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JOURNEY OF COCA COLA

It comparatively illustrates the evolution of the Pepsi and Coca-Cola logos


from their beginnings in the late nineteenth century to their current state at
the end of the 2000s. The comparison chart mocks the ever-changing
personality of the Pepsi logo in contrast to Coca-Cola’s stoic script logo,
unaffected by the effects of time. The philosophical point it makes is indeed
funny and, for the most part, accurate: Coca-Cola has long been the steady
brand that triumphs over Pepsi as the latter attempts to gain ground with
brand gimmicks and changes. And I will be the first to admit that the Coca-
Cola logo and its consistency over the years is far more supreme than Pepsi,
but every time I saw this JPG come up in more and more web sites and blogs
I couldn’t help but cringe at the inaccuracy and deception it engenders.

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Difference between Coke and Pepsi

Amongst the leading rivals in the beverage industry, Coca-Cola and Pepsi
struggle to remain on the top and prove to be the fiercest competition for
each other. Keeping up their reputation and serving the masses since the past
many decades, Coke and Pepsi both have similar problems, such as having
inappropriate ingredients that are not suitable for different nations, like
India, due to the cultural differences. For the sake of their future growth,
these companies are seen to compromise in order to have their status and
figures remaining on the top. Both the drinks continue to confuse the
consumers in the competition of wanting to be the best.

Basic Statistics

When it comes to the essential figures, we have seen that Pepsi has more
advantages whereas coke is getting superior figures. Pepsi wins the game
when it comes to making revenues and creating profit margins and it has
been noted that since the past few months, Pepsi has updated itself more
than Coke has. This is an indication that the investment banks are favoring
Pepsi over coke. However, the companies aim to secure better measures in
the future of promising markets which may bring them loss at one time but
in the longer run, there is an increase in the economies of scale.

Success on Individual Basis

Pepsi has had constant growth during its occupancy in a stable pattern that
shows promises of future expansion. Even though the customers do not like

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the speed of the pattern, long-term investors favor Pepsi exactly for this
reason and therefore, the boost in price. The company is in their "maturity"
state where the product is said to be enjoying the maximum economies of
scale and can carry this success for quite a while, if the right tactics are used.
If a company invests in Pepsi today, by 2015, Pepsi promises to rise almost
100 points more. You need to be patient when it comes to investing in such
areas of business and to give you satisfaction, you get to see the capital
increase over the years. However, Coca-Cola is not seen to be giving the
same fluctuation to the investors as it changes in a $5 range. This may attract
those who believe in fixed income but since the past decade, no significant
rise has been seen nor are there any signs of possible expansion. Coke has
tried to add to its value to the maximum but it is feared to experience
diseconomies of scales sometime in the near future.

Marketing Strategies
Pepsi is expanding itself by focusing on CEO's that are of different cultures
and this is the reason it is being a step ahead of Coca-Cola. Coke therefore
needs to have different strategies to gain popularity in different parts of the
world and match the steps that Pepsi is taking.

Summary
● While the market generally believes that Coke is on top of the
industry, times are changing for the worse for this company as Pepsi
has started becoming more favorable because:
● The significant increase in the investing market and their different
strategies of having the public on their side

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● Pepsi updates itself after an interval of few months to show their
stability when it comes to investors which shows that they are
generally financially established.

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PREPARATION OF SOFT DRINKS

A soft drinks is a mixture of concentrated sugar syrup and treated water. The
factors that affect the soft drink industry and has resulted in the great
competition are:

Conversion of hard water to soft water: it is highly technical process, which


requires experienced personal, huge investment and quality of soft drinks.

Impulse: soft drink business behavior is not governed by branch loyalty so


the emphasis is not only on creating the market but also on retaining it.

Availability: the availability of right brand at the right place and at the right
time is the main aim for wining consumers in soft drink business.

Seasonal business: the main consumption of soft drink is in summers and


hence most of the profits are to be made in this season only.

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SOFT DRINK MARKET IN INDIA

Today India is one of the most potential markets, with population of around
900 million people, the Indian soft drinks market was only of 200 cases per
year. This was very low even compared to Pakistan and Philippines.
Population and potential market are two major reasons for major
multinational companies of entering India. They feel that a huge population
coupled with low consumption can only lead to an increase in the soft drink
market. Another increase in the sale of soft drinks in the scorching heat and
the climate of India, which is suitable for high sale of soft drinks. All these
factors together have contributed to a 30% growth in the soft drinks industry.
If the demand continues growing at the same rate, within two years the
volume could touch 1 billion cases. All these factors are the reasons for the
entry two giant of the soft drink industry of the world to enter the Indian
market. These two giants Pepsi and Coca-Cola, Themselves share 96% of
the soft drink market share. Rest is shared by Cadbury’s Schweppes, Campa
Cola and other soft drink brands. But was the scene same 20 years ago? The
answer is No. 1970 was the year of pure soft drinks Campa cola and Parle
people (Thumps up and Limca).

Soft drink consists of a flavor base, sweetener amid carbonated water. In


general terms non-alcoholic drinks are considered as soft drinks this name
soft drink was given by Americans as against hard which is mainly
alcoholic.
The major participants involved in the production and distribution of soft
drink are concentrate and syrup producers, bottlers and retail channel.
Concentrate producers manufacture basic soft drink flavors and retail

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channel refers to business location that tells or serves the products directly to
consumers.
Soft drink is not a product, which a person plans to buy before hand, but is
an impulse purchase. Lots of sale depends upon the strength of
merchandizing done at the point of sale.

It all begin in 1977, a change in government at the center led the exit of
Coca-Cola which preferred to quit rather to dilute its equity to 40% in
compliance with the Foreign Exchange Regulation Act (FERA). The first
national cola drink to pop up was double seven. Delhi oil coke’s exit,
switched over to Campa Cola.

The beginning of 1980’s saw the birth of another cola drink, Thums up,
Parle the Gold spot people, launched it in 1978-79, as “Refreshing Cola”. By
the mid-eighties Mc Dowells launched Thrill, and by the late eighties three
was Double Cola, which entered in India market, as a NRO-run out fit with
its plant in Nasik { Maharastra }, in 1978 Parle, Indian soft drink’s. market
(share 33%) with its gold spot and Limca brands. Later Thums Up also
started ‘Thums Up. At the same time the threat to the Indian soft drinks was
that of fruit drinks. In 1988, fruit drinks market was valued at Rs. 40 crores
and grew at the rate 20%.

Coca-Cola entered Indian by buying up to 69% of the 1,800 crore soft drink
market { i.e. 5 Parle Export brands of Thums Up’s Limca Gold spot, Citra &
Maaza }.Today the scene has changed making it a direct battle between two
giant Coca-Cola and Pepsi. The picture will become clearer by looking at the
India market shares in the beverage industry.

34
One of the strongest weapons in Coke armory is the flexibility it has
empowered its people with.

In Coke every employee, may he be a manager or salesman, have an


authority to take whatever steps lie or sloe feels will make the consumers
aware of the brand and increase its consumption. Thus Coke believes in
establishing and nurturing creditability of the salesman and making
commitment to grow business in accounts. All these factors together led to a
high growth in the Indian market and constantly increasing market share.

35
COMPETITIVE ARENA

The soft drink market all over the world has been witnessing a neck to neck
battle between the two major players, Coca-Cola and Pepsi since the very
beginning. The thirst quenchers are trying hard to have the major chunk of
the pie of carbonated soft drink market. Both the players are spending their
energies in building capacity, infrastructure, promotional activities etc.

Coca-Cola being 11 years older than Pepsi has dominated the scene in most
of the soft drink markets in the world and enjoying leadership in terms of
market share. But the Coca Cola people are finding it hard to keep away
Pepsi, which has been narrowing the gaps regularly. The two are posing
threats to each other in every nook and corner of the world. While Coca-
Cola has been earning most of its bread and butter through beverage sales,
Pepsi has a multi products portfolio with some portion from the same
business.

The two warriors are face to face once again here in India with different
strategies and tactics to attack the rival. Coca-Cola is focusing upon the joint
ventures with the existing bottlers (FOBO) franchise owned bottling
operations to enhance its control on manufacturing and marketing of its
products range and attain the quality standards of its class.
Countering it Pepsi has taken the battle in its own hands by floating as
investment of $ 95 billion to set Pepsi Company. India holdings, as
subsidiary for {COBO} Company owned bottling operations. Both the
companies are following different path to reach the same destiny i.e. to fetch
the bigger portion of aerated soft drink market. Both consider India a huge

36
potential market, as per capita consumption here is a mere 3 serving
annually against the world average of 80. Therefore, they are putting in their.
Best efforts to woo the Indian consumer who has to work for 1.5 hours to
buy a bottle of soft drink. In comparison to the international norms minutes,
a major hurdle to cross over for both the athletes for getting No.1 position
comparison to the ‘inter. Coca-Cola is well set with its 53 bottling sites
throughout the country giving it an edge over competition by processing a
well-built bottling and distribution set-up. On the other hand, Pepsi, with
two more years in India, has been able to set an image of a winner in India
and has been able to get the pulse of the India soft drink market. The soft
drink giants are leaving on stone unturned and her for the long terms.

Coca-Cola has been penetrating the market through its wide product range
with a determination to change consumption pattern of soft drink in India.
Firstly, they upgraded the whole industry by introduction 300 ml bottles,
which in turn had given the industry a booming growth of 20% as compared
to the earlier 5%. They want to develop a coca culture here and are working
on a strategy to offer soft drink in every possible package. In Coca-Cola
camp, the idea of competition has not come from Pepsi, but from the other
beverages such as tea, coffee, Nimbu Pani, water etc. Pepsi is quite
aggressive in its approach to Indian Consumer.

They are desperately working on the strategy to be winners in the hot cola
war between two big barons. According to Pepsi philosophy, it’s the
madness that encourages executive to drink, to conjure up those creative
tactics to knock the fizz out their competition. Pepsi had plumbed a large on
the visibility of its blue red and white logo. They have been going with

37
aggressive marketing by putting Sachin Tendulkar, Akshay Kumar and now
Shahrukh Khan in their advertisement to endorse their brand, the role
models for its targeted consumer the teenagers. They have increased the fizz
in the market place by introducing the dispensers called Fountain Pepsi and
has been enjoying a lead over its rival there.

Coca-Cola on the other hand, has been working on the saying slow and
steady wins the race’s side by retailing to every more of its competitor. They
have procured the shield of Thums Up with a handsome market share in
Indian soft drink market.

Countering Pepsi’s international commercial that used two chimpanzees to


cock a snoop at coke, Thums Up come with the ad line, Don’t be Bandar,
taste the Thunder. Also Thums Up has been positioned now very near to that
young image of Pepsi and giving it a though time.

These cool merchants have put everything on fire. It Coke got the status of
the official drink of wills. World Cup, Pepsi blushed as nothing official
about it. As Thums Up projected as ‘Sare Jahan Se Achcha’ Pepsi was
passionate enough with ‘Freedom to be’ and now the “Yeh Dil Mange
More” when Thums Up came with Thunder blast, the other offered ‘Pepsi
stuff card’. If red is meant for coke, Pepsi has ‘chosen to be blue.

38
COKE’S MARKETING STRATEGIES

Coke decides on its marketing strategies at a national level and lends them a
local flavor. For example, while festival mood plays a strong role in
marketing, it is activated for Durga Puja in Calcutta, Dandiya in Gujarat,
etc., Coke has its focus on the youth market in India.
As a first step toward catching the attention of the youth, coke signed on
cricket heroes Saurav Ganguly and Javagal Srinath. It slowly started talking
about youth passions like cricket, films, festivals and food. Soon the
advertisements started giving the message, “Eat Cricket, Sleep Cricket,
Drink only Coca-Cola” And now it has started modifying film hits to frame
catch lines that appeal to the youth. ‘This particular strategy has worked well
for coke.
Coke is focused on distribution to ensure that its products are within
customer’s reach. And it saves its focus has begun to pay it dividends. As
per mid-1998 figures coke is selling as many bottles in the hinterland of
Punjab as it does the four metros.

39
THE FUTURE OF COCA COLA

While doing business overseas offers Coke wonderful growth opportunities


it also has its own disadvantages. The economic slowdown in various
overseas markets and the strong dollar had their impact on Coca-Cola
revenues and bottom line in 1998. But the company optimistic about the
future.
M Douglas Investor, the Chief Executive Officer of the Coca Cola Company
says, “This past year 1998 has been a challenging period for the Coca-Cola
Company as economic environment became more uncertain in the later part
of 1998, and we strongly believe that our fundamental opportunities for long
term growth have not changed”.
As long as maximization of shareholder wealth remain Coke’s focus for its
future is assured Goizueta had stated and proven to the world that focus on
shareholder wealth does more good to the company than focus on revenues
and it is not that coke does not enjoy volumes for it is world’s No.1 soft
drink manufacture. It is not content with this title and is aiming at higher
volumes year after year. Surely coke will continue to grow. Point on Roberto
had reduced the company basically to its trademark and the returns are so
astronomical as to be off the boards. It just absolutely added a jet engine to
their performance.

40
Coca-Cola globalization strategies

The Coca-Cola Company is global player and approximately 70 % of its


volume and 80 % of its profit come from outside the United States of
America. Although it was perceived as a standardized brand across the
world, Coca-Cola had been quietly fine turning its international marketing
strategies to suit the needs of individual national markets. Only the brand
Coca-Cola, sprite and Fanta were marketed globally. In Latin America and
Europe, where a heavy consumer preference existed for lemon lime and
orange sodas. Coke had developed a wide range of formulations and flavors
to cater the needs of different countries. In el salvador and venezuela, a
version of Fanta called Fanta K a cream soda type of drink became
extremely popular. Similarly, in Indonesia coke had been selling pineapple
and banana Limca, Maaza and Thums up in 1993.

Coca cola anchor bottlers


One of the driving forces behind coke’s bottling system are that is anchored
by 10 strategically signed business partners of the coca-cola company, the
anchor bottlers.

Anchor bottlers are a group of select companies throughout the coca-cola


system that are distinguished by
A pursuit of the same strategies aims as the coca-cola company in the
development of the non-alcoholic beverage business.
➢ A commitment to long term growth.
➢ Equity position by the coca-cola system.
➢ Service to a large, geographically diverse area.
➢ Sufficient financial resources to make long-term investments.
41
Distribution In The Coca-Cola System

Getting products to market


One of the values of the coca-cola system is presence that coca cola should
exist everywhere. In the words of former ceo india operations - richard
nicholas,“our goal is to have coke available within an arm’s reach of
desire”. To fulfill this goal, coca-cola not only produces products, but also
has effective systems to distribute the all over India.

Distribution
Distribution sales + delivery + merchandising + local account management.
Distribution of coke’s products includes the activities of sales, delivery
merchandizing and local accounts management. These are two major types
of distribution systems

I) direct and indirect


In direct distribution, the bottler partner direct control over the activities of
sales, delivery, merchandizing and local account management.
In indirect distribution, an organization which is not a part of the coca-cola
system has control of one or more of the distribution elements (sales,
merchandizing and local accounts managements).
With direct distribution there are two types of sales:

Advanced sales and conventional sales


In conventional sales, all the distribution activities (sales, delivery,
merchandizing and local accounts management) are performed by the same
persons.

42
In advanced sales, sales and delivery are performed by different people within
the coca-cola system.

Difference between a customer and consumers


● A consumer is someone who drinks coca-cola products.
● A customer is a business location which sells or serves coca-cola
products to consumers.

Merchandizing
One the Products Are delivered to the Customer’s They Are Promoted at the
Point-Of-Purchase to Maximize the Company’s Sales Opportunities,
Merchandizing Involves Looking at the Presentation of the Products through
the Eyes of the Consumers. It Is Ail On-Going Process That Help The
Company Present Its Products Properly To The Consumers In The Market
Place For Instance, Is The Display Attractive? Are the Product Neatly
Organized.

Presenting the products


They are as follows: -
● Secondary display
● Coolers
● Vending machines
● Post mix / pre mix

India’s relationship with coca-cola


Just after independence, the maharaja of patiala oversaw his coca-cola hoarding
from his huge, ornate palace, coca-cola export representative frank harrold,
was awed by the maharaja’s opulent life style. In 1993 after coca-cola

43
returned to India after a 16 year absence (beorge fernandes threw the
company out of the country in 1977 on the pre text that it had refuse to
divalge its formula to indian officials), ceo of the coca-cola company,
robesto boirueta “salivated over a virtually untapped market of 840 million
people”.

Promotion: the coca-cola way

Goal for the 90’s


“to place coca-cola within an arm’s reach of desire.

Consumer activity clusters: -


● Grocery shopping
● Other shopping & services
● Eating and drinking
● Entertainment / recreation / leisure
● Travel / transportation / hospitality
● Educational
● At work

The 3a’s: -
The strategy for reaching increasing numbers of consumers in India is based on
the belief that consumers will buy our products it they are available,
affordable and acceptable.

Strategies for the 3a’s


● Focus on the consumer and customer.
● To provide quality customer services, and caring about the quality of
performance in respective jobs.

44
● Caring enough about what we do, too it the best we know how.
The 3a’s is coca-cola underlying strategy for meeting its goal to reach increasing
numbers of consumer’s. How does coke position its limited resources to help
meet its good? Let us explore the specific ways in which the coca-cola
system addresses each of the 3a’s.

Availability
Some of the ways in which, the coca-cola company hopes to increase
availability of its product include improved or innovative packaging,
dispensing systems, distributions system, marketing.

Affordability
The ways to address affordability include pricing decisions, as well as resource
management. To make its product available at a price affordable to the
consumer. Continually processes more efficient and therefore more cost-
effective.

Acceptability
Making coca-cola brand products the beverage choice for any occasions
depends on a variety of strategies to reach the target audience. The common
strategies adopted to effect acceptability which youth market activities,
community programs, and other activates.

45
The image
The image is communicated all around the world in advertisement on media
such as newspaper, magazines, radio and televisions. The list goes on..
However, image is much more just advertising every person working within
the coca-cola system is part of the image whether one is involved in creating
its advertising making its quality products or selling merchandizing and
distributing its beverage their hard work and aptitude will say something to
the people about its product.

Coca-Cola system flow chart

Raw material

Coca-Cola Company

Bottler

Customer

Consumer

46
Segmentation
The soft drink market can be segmented on the basis of place of consumption or
on the basis of type of products. The segmentation on the basis of place of
consumption divides the market into two parts: -
● On-premise-80% of the consumption of soft drinks is on premise i.e.
restaurants, railways stations, cinema etc.
● At-home- the rest 20% of the market compromises of the soft drink
purchased for consumption at home.
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
● Mango
I. Orange flavor based soft drinks constitute around 17% of the market.
Tie segment is largely dominated by national brands like fanta of coca
cola and mirinda orange of pepsico, which collectively forth 15% of
the market rest of the market is in hands of smaller brands like
crush( earlier of Cadbury Schweppes and now of coca cola), gold spot
etc.
Ii. Cloudy lime flavour constitutes 14% of the market and is largely
dominated bulimia of coca cola and Mirinda lemon of pepsico. Limca

47
is the market leader with around 70-75% of the market followed by
miranda lemon.
Iii.Clear lime:this segment of the market witnessed good growth
initially with all the players launching their brands in the segment. But
now the growth in the segment has slowed down. The brands
available in this segment are. 7 up of pepsi, sprite of ‘ coca cola and
canada dry (earlier of cadbury schweppes and now of coca cola). The
segment constitutes 3% of the total soft drinks market.
Iv. Mango: this flavour segment constitutes 2% of the total soft drinks
market and it directly competes with mango based fruit drinks like
frooti. The leading brands in this segment are: maaza of coca cola,
mangola (earlier of dukes now of pepsico) and slice of pepsico.
There is very thin line of difference between the clear and cloudy lime. The
most obvious feature is that clear lime has to be bottled in green bottles as
sunlight harms the drink and changes the taste.
There are some small local brands at city or regional levels. Most of these
are either merging with the two big players (coca cola and pepsi) or they
command a very small - less than 3%, of the total market ill their respective
areas.

PRODUCT PROFILE

48
The product range of the coke has listed brands:

Coke: 200ml, 300ml, 500 ml, 1lt, 1.5lt, 2lt.


Thums up: 200ml, 300ml, 500 ml, 1lt, 1.5lt, 2lt.
Limca: 200ml, 300ml, 500 ml, 1lt, 1.5lt, 2lt.
Fanta: 200ml, 300ml, 500 ml, 1lt, 1.5lt, 2lt.
Sprite: 300ml, 500 ml, 1lt, 1.5lt, 2lt.
Mazza: 300ml, 2lt.
Diet coke: 300ml, 1.5 lt, 2lt.
Kn. Soda: 300ml, 500ml
Kn. Water: 500ml, 1lt, 2lt.

49
RESEARCH
METHODOLOGY

50
RESEARCH METHODOLOGY

Marketing research is the systematic design, collection, analysis

and reporting of data and finding relevant to a specific marketing

situation facing the company.

Effective marketing research involves five steps shown in figure

given below.

Define The Developing Collecting The


Problems The Research Information
Plan.

Analyzing The
Information

Presenting The
Information

51
DESIGN OF STUDY

A research design is the specification of methods & procedures for acquiring

the information needed to analyze.

DATA REQUIREMENTS

Considering nature of study, which is exploratory research. The gathered

data can be grouped as:

1. Primary data

2. Secondary data

RESEARCH OBJECTIVES

The main aim behind the dealers’ survey to know about the reach of

Miranda lemon and get a comparative position of coke and Coca cola. By

the help of certain chart and graphs as shown on the following pages with

the help of their pictures we can easily make certain conclusion.

DESIGN USED

Survey research design i.e. conclusion is based on evidence collected

through means of questioning.

52
SAMPLING PLAN

Since it is the study of distribution channel. A sampling plan is always

preferred because of consideration of time and cost. As the population of

Meerut is very large.

53
SAMPLING METHOD:
Simple random sampling method at various in Meerut and NCR.

DATA COLLECTION METHOD


Non disguised, structured, questionnaire.

OBJECTIVE OF PRIMARY DATA


● To compare the coke and Pepsi in Meerut and NCR region.
● To study the choice of Pepsi and coke
● Reason for their purchase of particular brands
● Market share of coke and Pepsi.

SOURCE
● Personal interview
● Questionnaire
● Previous reports
● From company’s personas
● Magazines and journals

DETERMINING SAMPLE DESIGN


All the items under consideration in any field of inquiry constitute a
‘universe’ or ‘population’. A complete enumeration of all the items in the
‘population’ is known as a census inquiry. It can be presumed that in such an
inquiry when all the items are covered no element of chance is left and
highest accuracy is obtained. But in practical this may both be true. Even the

54
slightest element of bias in such an inquiry will get larger and larger as the
number of observation increases. Moreover, there is no way checking the
element of bias or its extent except through a re-survey or use of sample
checks. Besides, this type of inquiry involves a great deal of time money and
energy. Not only this, census inquiry is not possible in, practice under many
circumstances. For instance blood testing is done only on sample basis.
Hence, quite often we select only a few items from the universe for our
study purposes. The items so selected constitute what is technically called a
sample.

The research must decide the way of selecting a sample or what is popularly
known as the sample design. In order words, a sample design is a definite
plan determined before any data are actually collected for obtaining a sample
from a given population. Thus, the plan to select 12 of a city’s 200
drugstores in certain way constitutes a samples design. Samples can be
either probability samples or non-probability samples with probability
samples each element has a known probability of being included in the
samples but the non-probability samples do not allow the researcher to
determine this probability. Probability samples are those based on simple
random sampling, systematic sampling, stratified sampling, cluster/area
sampling whereas non- probability, stratified sampling, cluster / area
sampling whereas non- probability samples are those based on convenience
sampling, judgment sampling and quota sampling techniques. A brief
mention of the sample designs is as follows.

55
SIMPLE RANDOM SAMPLING

This type of sampling is also known as chance sampling or probability


sampling where each and every item in the population has an equal chance
of inclusion in the samples and each one the possible samples in case of
finite universe, has the same probability of being selected. For example, if
we have to select a sample of 300 items from a universe of 15,000 items,
then we can put the name for numbers of all the 15,000 items on slips of
paper and conduct a lottery. Using the random number tables in another
method of random sampling. To select the sample, each item is assigned a
number from 1 to 15,000. Then, 300 five digits random numbers are selected
from the table. To do this we select some random measurements, or the data,
with the help of which the examines the truth contained in this hypothesis.
But in the case of a survey, data can be collected by any one or more of the
following ways.

BY OBSERVATION: -
This is method implies the collection of information by way of investigator’s
own observation, without interviewing the respondents the information
obtained relates to what is currently happening and is not complicated by
either the past behavior or future intentions or attitudes of respondents. This
method is not doubt an expensive method and the information provided by
this method is also very limited, as such this method is not suitable is
inquiries where large sample are concerned.

56
(ii) BY MAILING OR QUESTIONNAIRES: -
The researcher and Respondents do not come in contact with each other if
this method of survey is adopted. Questionnaires are mailed to the
respondents with a request to return after completing the same. It is the most
extensively used method in various economic and business surveys. Before
applying this method, usually a pilot study for testing the questionnaire.
Questionnaire to be used must be prepared very carefully so that it may
prove to be effective in collecting the relevant information.

57
MEANING OF PROJECT

Project gives us necessary guidance and though for the foundation of


business. A project is an essential requirement of business and for motivated
person. Prior starting of any project it is necessary to understand the
meaning of every letter of word “Project” each letter of the project has its
special meaning that is discussed.

‘P’ Planning:- The first step ‘P’ stands for planning, planning is the word
that means prior the construction of anything and for their arrangement there
should be good planning which gives better results in manufacturing the
thing that is being prepared as well as it is the bridge of between present and
future.
R: Resource: ‘R’ stand for resource as resource give the current idea to
promote the work.
O: Operative: It is a process of performing various functions in systematic
way.
J: Joint effort: a project cannot achieve its maximum success without the
complete cooperation of group member.
E: Engineering: Engineering is a branch of science under which a given task
can be performed efficiently with the help of knowledge and technique in a
short duration by employing less money.
C: Communication: Communication simply means the exchange of ideas,
which flows between two or more person as well as from one place to
another place.
T: Techniques: Techniques is a simply an art performing a task the project
should be finished with different technique of works.
58
OBJECTIVES

59
OBJECTIVES

To find out the attributes which make the Brand Number Considering the

Soft Drinks Industry (Pepsi & Coke)

2. To comparative study between coke and Pepsi

3. Further preference of consumer

4. To study the quantity use of Coke and Pepsi.

5. Market share of various brands

6. To know the daily sales figures of each brand.

7. To know dealer’s suggestion, comments what amore they require from

company.

60
DATA ANALYSIS

61
DATA ANALYSIS

The soft drink market of India are by and large controlled and governed by
the two soft drink giant company, Coca cola and Pepsi.
The only presence of the two giant company doesn’t mean absence of
competition rather a neck to neck competition, a dual strategy and counter
strategy is all time present to capture a greater market share. For extracting
the total market strength, two companies have a wide variety of soft drinks.
Different flavor and different packs are available from both the companies.
Let us take a glimpse of the different flavor available for both companies.

FLAVOUR COCACOLA PEPSI


1. Cola Thumsup, Coke Pepsi
2. Clear lemon Sprite Mountaindew, 7-up
3. cloudy lemon Limca Lemonmirinda
4. orange Fanta Mirinda
5. fruit juice Mazza Slice
6. soda Kinely Everess
7. Vanilla Vanillacoke No flavour
8. Water Kinely Aquafina
STOCK OF COKE AND PEPSI IN OUTLETS

62
80% 1 1 2 2
80%
70%
60%
50%
40%
30% 20%
20%
10%
0%
Coke Pepsi

63
Q-1: How many carats do you sell in a week?

1. 10-20 2.20-30

3. 30-40 4. Above

15%
10%

40%
35%

10 to 20 20 to 30 30 to 40 40 above

64
Q-2: Supply of Coke is regular/proper?

25%

75%

Yes No

65
Q-3: Scheme disclose by salesman daily?

10%

90%

Yes No

66
Q-4: Problem rectified by Coke?

67
20%
5%

75%

Within the day Within the week


Within the month Never

Q-5: Behavior of salesman of coke?

68
30% 5% 10%

55%

Outstanding Good Average Poor

69
Q-6: Which Company provide better service?

70
30%

70%

Coke Pepsi

Q-7: What is the quantity of Coke Brand you prefer?

71
25%
10%
25%

40%

0 to 2 3 to 5 6 to 10 above 10

72
Q-8: No. of empty glasses of Coke at present?

20%
5%
45%

30%

0 to 2 3 to 5 6 to 10 above 10

73
Q-8: No. of empty glasses of Pepsi at present?

15% 20%
10%

55%

0 to 2 3 to 5 6 to 10 above 10

74
SWOT ANALYSIS

In a most competitive market like soft drinks, one has to be very strategic

against all the business activities of the rivals. A constant review of the

market situations and fitness of the self is the must to keep in line with the

competition. Especially in the soft drink market, it has a rivalry, which is

more than any other industry, where each player tries to maximize its market

share on the cost of others. Packaging is one where there is a very crucial

battle going on. This battle is in fact called the mother of battle in Indian soft

drink market. One of the major tools of this battle is of course packaging. To

win the situation coke must analyze the external environment to identify

threats and opportunities to adopt to the strategic fit. For this internal

strengths and weakness must be analyzed.

75
STRENGTHS

1. Coke is the most popular brand in world.


2. Coke is enjoying maximum market share in the Indian market. In
fact it is more than 50%.
3. Coke is being backed by a strong force of 53 franchises.
4. Coke is having an edge over Pepsi by having a large number of
products.
5. The shape of bottle of coke is much more attractive than Pepsi.
6. Crate of coke is not attractive but also safer for the glass bottles in
comparison to Pepsi.
7. Bottle crown quality of coke is much better than Pepsi, due to its
workability as there are complaints of rusting in and around the
crown of Pepsi. This is more common during the rainy season.
8. Coke has takeaway bottles which are not available with Pepsi in 250
ml. bottles.
9. Coke strength ahs directly come to come without doing much effort
in establishing themselves.
10. Writing style of coke name is liked most of the consumers.
11. Coke of 200ml. has infect increased the overall sales of cola marker.
12. The writing style of coke is more attractive than Pepsi.
13. The can of thumps up which belong to coke is more appealing due to
its color scheme.

76
WEAKNESS

1. There are complaints of coke can regarding leakage.


2. The Pepsi is attracting new generation segment due to availability of
fountains, this is being lacked by coke where fountain machines
overall in comparison to Pepsi are less. Especially in Meerut, there is
no fountain machine of coke available, whereas Pepsi has 35
machines.
3. Form the retailers of coke, it was also notice that limca bottles have a
problem of chip i.e. on operating the glass cracks slightly
4. The pet bottles of coke are not suitable for house hold use.

77
OPPORTUNITY

1. The market growth rate is very high infect 30% per annum.
2. The brand name coke speak most highly i.e. coke is at the top of the
mind among consumers.
3. The growing market may be captured with greater number of package
in run it is a threat to Pepsi as the market demand is very
heterogeneous.
4. The launching of 250 ml coke has seen the overall growth in coca
segment.
5. Thumps up cans adopting the blue color has infect eaten the main
plant of Pepsi of its blue color.

78
THREATS

1. The threats risk of potential entrants due to Cadbury’s future entry is


very considerable.
2. Local lemon soda is also a big threat to coke, as most of the buying
power of lower class segment is exhaust by these bottles.
3. The threats of seasonal drink like fruit juice are also considerable as
the time of peak season; the rates are Rs. 4/- per large glass.
4. Pepsi adopted a strategy to lower down the prices against the launch
of 200 ml coke.
5. The inclination of new generation is towards Pepsi due to color
concept adopted by the company.

79
PROBLEM

After visiting nearly 100 cutlets I found that there are some common

problems of retailers which are as follows.

1. The first and the major problem among the retailers are non-

availability of Coke’s all ranges of flavors and packs.

2. The second problem is faced by retailers is that they do not want to

display the warm and cold display because it will consume their time

and place.

3. Retailers are asking about schemes. They are complaining that they

are not getting proper facilities, although their sale is very good. They

do not have chairs and tables and in some cases if they have it is not in

good condition.

4. The other problem is that equipments provided by the

company (freeze) are not in good condition which is

affecting their sale in season.

80
CONCLUSION

81
CONCLUSION

Following are the certain conclusions from consumer’s survey.

1. The comparative sale of Coca cola and is near about equal. Coca cola
is getting a lead by the help of its coca flavor.
2. Limca is in a far better position in lemon flavor.
3. Consumer likes only the aid of Miranda lemon they not want to try
Miranda lemon.
4. Fountain Coca cola is not easily available in NCR. But if it will be
there than there is a chance of better sales.
5. Coca cola have a sale of 56% in cola flavor.
6. But overall sale of all favors in near about equal Coca cola have 51%
of soft drink market while coke have 49% of share market.
7. The advertisement of Coca cola and Miranda lemon is mostly liked by
the maximum people.
8. There is a big scope for fountain Coca cola in cinema halls, shopping
complex, bus stand railway station etc.

82
FINDINGS

83
FINDINGS

On the basis of information gathered and observation made, regarding the


survey of soft drink industry. We have divided the findings into:-

Dealer’s profile:

Consumer’s profile:-

Under the head “Dealer’s profile” we have made analysis from data’s given

by dealers.

Under the head “consumer’s profile” we have annualized, tabulated drawn

inferences from 100 consumer’s opinion collected from various in the

market.

84
LIMITATION

85
LIMITATION

Following are certain limitations, which I face during the competition of my


project report.
1. Many people in from rural area they feel themselves unsuitable for
the answer.
2. Small size of sample.
3. I have done my project in July so there is chance of variation in the
result.
4. Many people don’t give answer of all questions.
5. Look of sufficient time for the proper administration of the research
because time is very important to do a research. Time of two months
has been allocated which is very small and not sufficient for cover the
all of the area.
6. Non-availability of the money was the second limitation of this study.
Since the researcher has to find his study by his own source of
finance. The lack of financial sources was another of this study.

Since the research has been conducted on the human being who were the
retailer of the different brands of soft drinks.

86
SUGGESTIONS
&
RECOMMENDATION

87
SUGGESTIONS

➢ In cold drinks Coke and Thums Up have strong brand awareness and
availability but Pepsi itself has a strong availability in comparison to
its competitions. So the company should try to make coke, Limca,
Thums Up and other brand widely available.
➢ Company should motivate the retailers to display its brand effectively,
for this they should provide the free samples for display.
➢ Communication gap between retailers and management should be
reduced.
➢ Problems of the retailers should solve by the company in most
possibly lesser time.
➢ Sales promotion should be implemented within time and should live
up to the promise kept.
➢ Sprite, Kinley Soda is not much popular so, Coca-Cola should try to
promote these less popular brands through increase their visibility in
warm and cold display.
➢ Salesman distributing products should carry and provide all the brands
to all retailers.
➢ Time to time visit of routes should be done by senior executives, so
that problem in the market are solved effectively, remember a officer
or executive can convince them more what a salesman cannot do.
➢ Company should take some actions against that retailer who misused
the equipments company provided.

88
RECOMMENDATION

Following are certain recommendation according to the consumer’s survey:

➢ The Coca cola should be stronger.


➢ Miranda lemon also should be strong with a flavor something
extraordinary.
➢ More scheme should be introduced with Miranda lemon,
➢ New flavor should be introduced in India soft drink market.
➢ Distribution channel must be improved.
➢ There must be less foam more liquid in the glass of fountain Coca
cola.
➢ Fountain Coca cola should b stronger.
➢ Glass quality of fountain Coca cola should be improved.
➢ Fountain Coca cola should be easily available everywhere.

89
BIBLIOGRAPY

90
REFERENCE BOOK:

● Marketing Research (Author- G C Beri)


(Publish by Tata McGraw Hill Publishing Co. LTD., New Delhi)
Third Edition (2002)

● Marketing Management (Author- Rajan Sexana)


(Publish by Tata McGraw Hill Publishing Co. LTD, New Delhi)
Second Edition (2001)

● Marketing Management (Author- R S Sexana)


(Publish by Himalya Publication, New Delhi)
Ninth Edition (2000)

● Marketing Management (Author- Philip Kotler)


(Publish by Pren Tice-hall of India PVT. LTD., New Delhi)
Ninth Edition (2002)

91
● Research Methodology (Author- Bhandrai)
Print 2012, Fourth edition

JOURNALS

● Business today
● India today

NEWS PAPERS
● Economic times
● Business standards
● Business week

WEB SITES
www. Google.com
www. Coca-colaIndia.com
www. Coca colacola.co.in
www. Coca colazone.yahoo.co.in

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