G.L.

Bajaj Institute of Management & Research

Approved by A.I.C.T.E., Ministry of HRD, Govt. of India
Plot No. 2, Knowledge Park-III, Greater Noida
PGDM BATCH-2020-22
DISSERTATION PROJECT

ON

A STUDY ON A COMPARATIVE STUDY ON SALES & DISTRIBUTION STRATEGY

OF PEPSI & COCO – COLA

Submitted in Partial Fulfillment for the Award of the

POST GRADUATE DIPLOMA IN MANAGEMENT
2020-22

GUIDE BY:
SUBMITTED BY:

(DR. ANAND RAI) DIVESH CHAUHAN

[Link]: PGDM 20039

ROLL NO: GM20052

1
 G.L. Bajaj Institute of Management & Research
Approved by A.I.C.T.E., Ministry of HRD, Govt. of India
Plot No. 2, Knowledge Park-III, Greater Noida
DISSERTATION PROJECT
PGDM Batch 2020-22

(I) FACULTY GUIDE CERTIFICATE

This is to certify that the work reported in the Dissertation Project on” A
STUDY ON A COMPARATIVE STUDY ON SALES & DISTRIBUTION STRATEGY OF
PEPSI & COCO – COLA” submitted by DIVESH CHAUHAN at G L Bajaj
Institute of Management & Research, Greater NOIDA, India, is a bonafide
record of her/ his work carried out under my supervision. This work has not
been submitted elsewhere for any other degree or diploma.

(Signature of Faculty Guide)

Name: DR. ANAND RAI

Date: 25/01/2022

2
 G.L. Bajaj Institute of Management & Research
Approved by A.I.C.T.E., Ministry of HRD, Govt. of India
Plot No. 2, Knowledge Park-III, Greater Noida
Dissertation Project
PGDM Batch 2020-22

(II)ACKNOWLEDGEMENT

I would like to thank the following people; without whom I would not have
been able to complete this Dissertation Project on the topic “A STUDY ON A
COMPARATIVE STUDY ON SALES & DISTRIBUTION STRATEGY OF PEPSI & COCO –
COLA”

My heartfelt thanks goes to our Director Dr SAPNA RAKESH for

providing an opportunity work on the Dissertation Project right from the first
trimester of the program.
I convey my sincere thanks to my Faculty Guide Dr. ANAND RAI for
providing me the constant support and guidance to carry out my project
effectively and efficiently.
I would also like to convey my gratitude to all faculty members and staff for
their support and guidance.
Name of the student: DIVESH CHAUHAN
Roll Number: PGDM20039
TRIMESTER 5
PGDM Batch 2020-22
GL Bajaj Institute of Management & Research

3
 DECLARATION

I hereby declare that the project titled “DISSERTATION

PROJECT ON A COMPARATIVE STUDY ON SALES &
DISTRIBUTION STRATEGY OF PEPSI & COCO – COLA”
is an original piece of research work carried out by me under the
guidance and supervision of Mr. Anand Rai The information has
been collected from genuine & authentic sources. The work has
been submitted in partial fulfillment of POST GRADUATE
DIPLOMA IN MANAGEMENT

Place:

Date: 25/01/2022

DIVESH CHAUHAN

4
 CONTENTS

SR. NO. TOPIC PAGE NO.

1 INTRODUCTION 5-19

2 LITERATURE REVIEW 20-48

OBJECTIVE

3 SCOPE OF THE STUDY 49-52

4 IMPORTANCE OF THE STUDY 53-56

5 RESEARCH METHODLOGY 57-60

6 ANALYSIS AND 61-80

INTERPRETATION

7 RECOMMENDATION AND 81-84

LIMITATION

8 CONCLUSION AND FINDING 85-88

9 BIBLIOGRAPHY 89-90

10 QUESTIONNAIRE 91-94

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INTRODUCTION

6
 INTRODUCTION 0F THE TOPIC
A THEORETICAL FRAME WORK OF CHANNEL OF DISTRIBUTION

“Marketing channels are sets of interdependent organization involved in the process of

making a product or service available for use or consumption. “The main objective of the
marketing process is to distribute the products to the actual users. This function involves
a number of sub-functions to be performed by a producer or manufacturer. These two
functions are most important first, the creation of demand is made through the process of
advertising and sales promotion activities. On the other hand the distribution through the
channels of distribution. The decision relating to the channel of distribution is a very
important decision from the firm point of view because the selected channels affect
considerable other marketing decision. Such decisions are of long term nature and
exercise their impact on the cost structure of the firm also. By channel distribution mean
the intermediaries or the process through which the goods products are transferred from
the producer to the ultimate users. Now a day any of the producers possibly do not sell
their goods directly to the final users. There are a lot of intermediaries between producers
and consumer, bearing a variety of name performing various kinds of function. Some
intermediaries like wholesalers and retailers buy and resale taking the bill. They are
known as merchant middle men and other are brokers, representative sales agent who
seeks or search for customers and negotiate on the behalf of the producer but do not take
of goods. These are called as middlemen. The manufacturer and its distributive outlets
share common objective to sell the manufactured products at a profit. No doubt its
objective differs with the marketing circumstance. Even though many variation of
specific objective fits into some categories. These are as follows:-

 To built distribution network loyalty

 To stimulate distribution
 To develop managerial efficiency in distribution organization
 To identify the source of supply for the product line at the final buyers level
The channel of distribution is a structure which organized and presents a choice among
alternative channels of distribution of the different marketing situations faced by retailers,
whole sellers and producers within the structure. It may be considered as a series of
function which must be performed in order to make producers efficiency. To bearing
maximum profits of all institutions concerned a channel of distribution should be treated
as a unit of total system of action. The activities of the manufacturer need to be
coordinated with these middlemen used in the distribution of given product. The
important of middlemen in channel of distributional can be over emphasized. It is that
who-

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 1. Collects concentrates the output of various producers,
2. Subdivides these into lot desired by the customers gathers various items together
in the assortment wanted and
3. Disperses the assortment to consumer industrial buyers.
The role of middlemen that of specialist in concentration equalization and dispersion
besides he side in the creation of the time from and procession utilities.

DECISION MAKING FOR CHANNEL OF DISTRIBUTION

The marketing executive must undertake to following steps in order to establish the
channel of distribution for a company.

1. He/She must understand the retail and wholesale market and type of middlemen
available in both.
2. He/She must understand the various conflicts which continually exist between and
within the channel.
3. He /She must select the general channel to be used keeping in mind the goals of
the company marketing programme and the job to be done by distribution system.
4. He /She must take decision regarding be intensity of the distribution (i.e. the
number of middlemen) to be used each level and each market.
5. He/She must select the specific firms which will handle his product and then
manage the day to day working relationship with them.
6. He /She must determine the methods and the procedure in firms (i.e. use of the
transportation and warehouse facilities and services in firms making programme)
in the physical distribution of the product.

Types of Marketing Channels

1. Direct marketing channel : A marketing channel that has no intermediaries level

2. Indirect marketing channel : Channels containing one or more intermediaries

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Customer Marketing Channels

Channel 1. Manufacturer………………………………………………..…Consumer

Channel 2. Manufacturer……………Retailer……………………………Consumer

Channel 3. Manufacturer……...Wholesaler………….Retailer…………Consumer

Channel 4. Manufacture…….Wholesaler……Jobber……Retailer…….Consum

9
Beverage industry is one of the fast growing industries in India. It can be divided in to two
sections i.e. carbonated and non-carbonated. The carbonated drinks that further classified in to
cola, lemon, orange, mango and apple segment .Marketing includes all the activities like
promotion, distribution, advertising etc. Marketing is also to convert social needs in to profitable
opportunities. So this topic provides all the essentials to theoretical as well as practical
knowledge and to inculcate its efficiencies. It will help the company ultimately to achieve their
goals. The soft drinks companies are experiencing a boom in soft drinks, although growth of
other cold drinks is not quite encouraging. The markets of soft drinks are mainly triggered by the
entry of two players i.e. coca cola and Pepsi.

PepsiCo India is striding ahead rapidly towards enabling the global vision to be the world's
premier consumer products company focused on convenience foods and beverages. PepsiCo
India seeks to produce healthy financial rewards for investors as it provide opportunities of
growth and enrichment to its employees, business partners and the communities in which it
operates. PEPSI has gained it’s dominance in terms of beverages as well as food. In partial
fulfillment of the above mentioned course a project was undertaken by me on the topic SALES
AND DISTRIBUTION, AND COMPARISON BETWEEN PEPSI AND COCA COLA. To
know the facts regarding the above topic, I did a market survey particularly for customers,
retailers and distribution in Noida. My interest was to look in to customer perception and
satisfaction level about PepsiCo with other beverages present in the market.

The project report titled “SALES AND DISTRIBUTION, AND COMPARISON BETWEEN
PEPSI AND COCA COLA” special reference to NOIDA only can be of great importance to the
organization.
It will help the company in following major way:-
To ascertain the satisfaction level of consumers
To identify their competitors and about their strength and weaknesses
To design their market strategies
In other way it can also influence decision on the requirement of the sales and distribution &
comparison between Pepsi and coca cola. Though I have tried to do my Project study honestly
and sincerely and in case, if there is any weaknesses and shortcomings, those are unintentional.
Every company wants to give maximum satisfaction to its customers, so that they can get good
value for their capital. The company wants to know:
 Whether the consumers are satisfied with their services or not?
 Whether consumers have faced any problem with the product and if any then what
type of problem they are facing?

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  Whether the retailers are satisfied with the promotional schemes of the company?
What should be the changes that will improve the quality of services?
 What are the competitive advantages the company has over the competitors and
where the company lacks?
 What are the opportunity and threats in the external environment and how the
company scheme for the opportunity and how the company overcome this threats?

Since this study was aimed at knowing the customer as well as retailer’s satisfaction
dissatisfaction level and therefore it required to collect information related to quality of services
provided by PepsiCo Company as well as about its competitors.

MARKETING MIX
Marketing is the task of creating, promoting and delivering goods and services to consumers and
businesses. Organizations identify and profile distinct group of buyers who might prefer or
require varying products and marketing mixes. The customer seeks for value and satisfaction.
The organizations can increase the value of the customer offering in several ways e.g. raising
benefits, reducing costs etc. marketing mix is a set of marketing tools that the firm uses to pursue
its marketing objectives in the target market. These marketing tools are known as 4 p’s of
marketing.

1. Product

2. Price

3. Place

4. Promotion


Varun Beverage Ltd. provides a winning combination of products and services to its prime
customers. PepsiCo is one of the world leading companies, which ensures complete security, and
reliability in all transactions

PRODUCTS
A product is anything that can be offered to a market to satisfy want or need and a service is an
act or performance that is essentially intangible and does not result in the ownership of anything.
What products or services have to be offered to the target market depends on the market
requirement and also the organization’s profits. The organization will offer those products and
services, which result in maximum profits and minimum costs

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PRICE
It is second important tool of marketing mix because it plays a major role in determining the
customer’s choice. Also it is the only marketing tool that results into revenue. The customer
makes a comparison between the prices offered by other companies and PepsiCo and then selects
the most suited offer. Varun Beverage Ltd. normally uses on going price strategy by seeing its
major competitor Coca Cola besides this company also uses Discount price strategy during
special occasions.

PLACE
The location of the organization plays a vital role in making its operations profitable. If the
organization outlets are located in some near markets then it will be very easy for it to attract
people. Therefore Varun Beverage Ltd. has most of its outlets at places where it can reach its.

PROMOTION
Pepsi Company is actively participating in promotion of its products and services through
advertisement and other promotional schemes. PepsiCo spends a major portion of its budget on
advertising.

Advertising is done through different ways like:

 Point of Purchase Promotion:

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  Personalizes Marketing

The research study was conducted to learn the localization strategy of global beverage

company Coca Cola in terms of two of its marketing mix variables, namely, the product
portfolio on offer and the distribution process. In the process detailed information was
collected on products launched, sales and distribution practices followed by the company, the
working style of the retail outlets that stocked and retailed Coca Cola products, and to a limited
extent the psyche of the consumers. In addition the study also uncovered initiatives taken up by
the top level management and the strategies they laid out to enhance the company’s market share
and sales turnover. This research was conducted with the help of questionnaires that tried to find
the satisfaction levels of the retailers regarding the support they enjoyed in terms of the products
and services offered by Hindustan Coca Cola company. In addition retailers were also queried on
what more they expected from the company, and the response of consumers towards Coca Cola’s
products. Coca-Cola is the world’s largest nonalcoholic beverage company. The company sells a
variety of sparkling and still beverages and generates about 70% of its revenue and 80% of its
operating profit in international markets. Coke’s core brands are a mixture of CSD (carbonated
soft drinks) sports drinks, bottles water, and juices; Coca-Cola, Sprite, Dasani, Powerade, and
Minute Maid1. Following the asset swap with CCE, Coke now owns about 80% of its distribution
in North America. Coca-Cola markets, manufactures, and sell beverages concentrates both in the
United States and International markets. With its vast distribution network, Coca-Cola is able to
introduce its products to 200 countries.
The Company has been devoted to invest in emerging markets as it announced that it plans to
heavily invest in China and India. The company intends to invest approximately $4 billion into
China over the next 3 years and $5 billion into India for the next 8 years.

In the presence of high transaction costs due to market imperfections, it is normally less
expensive for multinational corporations (MNCs) to conduct their business activities in new
markets through their internal corporate structures rather than by relying on the markets. Based
on a case study of Coca-Cola’s entry into the Chinese market, this paper tests the applicability of

13
internalization theory to explaining the entry mode choices of MNCs in developing countries.
Internalization theory reveals the economic rationale that was behind the changes in Coca-Cola’s
modes of entry as it moved from franchising to joint ventures (JVs) with selected local partners,
and more recently to the combination of JVs and franchising. When a multinational corporation
(MNC) enters into new markets, it is rather costly for it to conduct business activities in
imperfect markets due to high transaction costs. These costs include those accruing from the
problems of opportunism, small numbers of market agents, uncertainty, and bounded rationality,
as outlined by Williamson (1975). He argued that the transaction costs of writing, executing, and
enforcing contracts via the market are greater than the costs of internalizing the market. The
situation is further worsened when the business transactions involve complex contractual
contingencies. As such, it appears that an MNC will prefer to establish wholly owned
subsidiaries (WOSs) to deal with market imperfections. Apart from the choice of WOSs, there
are also other commonly used modes, such as joint ventures (JVs). Based on a case study of
Coca-Cola in China, this paper tests the applicability of the internalization theory to explain the
entry mode choice of MNCs in developing countries.

Coca-Cola in China has been chosen as a case study for a number of reasons. First, Coca-Cola is
the world’s largest cola producer and one of the biggest MNCs. Second, Coca-Cola has a
relatively long history of investment in China since 1979, when economic reform was
1
implemented under the de facto leadership of Deng Xiaoping. Third, faced with keen
competition from its close competitor, Pepsi-Cola, and an unfamiliar and highly versatile local
market environment, Coca-Cola’s ability, experience and success in capturing a large market
share in China seem to constitute an interesting case, upon which implications may be drawn for
the understanding of MNCs’ market entry into developing countries via establishing equity joint
ventures (EJVs). Fourth, there are only two previous studies on the operation of Coca-Cola in
China: Nolan (1995) and PU-TU-USC (2000). Based on a case study of the Coca-Cola bottling
plant in Tianjin, Nolan (1995) conducted the first in-depth analysis of the micro-economic
impact ofa single Coca-Cola plant in China. He found that the Coca-Cola business system in
general has positive impacts on the development of labour, capital and product markets in China.
The findings of Nolan (1995) are in-line with the conclusion of the large-scale study conducted
by a team of economists at Peking University, Tsinghua University and the University of South
Carolina (PU-TU-USC, 2000). Based on an input-output model

they estimate that the economic multiplier effects of Coca-Cola’s capital investment and ongoing
operation [including the upstream (suppliers) and downstream (distribution) business linkages in
the Coca-Cola business system] in China generated a total of about 414,000 jobs, 21.7 billion
yuan of output and 1.2 billion yuan of tax payment in 1998.
Despite the valuable information provided by the above meticulous studies, there is no specific
literature providing the theoretical foundation for the entry mode choice of Coca-Cola in China.
To fill this gap, this paper tests the applicability of the internalization theory in explaining the
entry mode choice of Coca-Cola in China since 1979. The contributions of our paper not only

14
produce implications for the applicability of the internalization theory, but also provide an
insight into the market expansion strategy of a global soft drink manufacturer in China. It must
be emphasized that other relevant impacts of the Coca-Cola businesses, such as the economic
impacts of the Coca-Cola business system in China, are not the focus and thus will not be
discussed in this paper.

It was March 31, 2003, and the Coca-Cola Classic brand management team was excited about
enjoying another Major League Baseball opening day at Turner Field against the visiting
Montreal Expos. As the team drove out to Turner Field, most of the talk centered on the Atlanta
Braves' prospects for the upcoming season. Jill Smith, however, had her mind on football—
specifically, the 2004 Super Bowl in Houston—only 10 months away. Although Coca-Cola was
no longer the official soft drink sponsor of the National Football League—rival Pepsi-Cola had
outbid Coca-Cola for those rights in 2002—Coca-Cola was an official team sponsor of the
Houston Texans, the hosts of the upcoming Super Bowl. Jill, the senior marketing executive on
the Coca-Cola Classic brand, had recently received a memo from her boss, the Vice President of
Brand Management for the Classic brand, requesting that, within two weeks, she present her
recommendations for what, if any, promotional activity the company should conduct in
conjunction with the 2004 Super Bowl in Houston. Jill knew that if Coca-Cola planned to
conduct any such promotional activity, it would be viewed by some, including the NFL and
Pepsi, as "ambush marketing." Her recommendations might not only have ethical implications
for Coca-Cola, but also legal implications as well. As a local Atlanta youth choir sang the
national anthem to commence the Braves' 2003 season, Jill's mind was elsewhere, mulling over a
wide range of concerns and possible recommendations. This study is conducted between two
global giants Coca Cola & Pepsi-cola. This research paper is basically a comparative study of
two well known competitors in beverage industry of Pakistan which are Pepsi Cola & Coca Cola.
The primary purpose of this paper is to find out which company is leading the market. This
research required us to conduct the consumer research on why they chose the drink. To find out
the factors & reasons that influence to choose their preferred drink.
Today, advertising is a multi-billion industry, employing hundreds of thousands of people and
affecting billions of people’s lives worldwide. In 2000, international advertisement spending
exceeded $414 billion and according to Zenith Opt media it is believed that spending will
maintain a 6 per cent growth rate for the next couple of years, increasing to an estimated $427
billion this year and to $451 billion next year. However, as a consequence of long-term changes,
such as the increase of a larger and more diverse range of media, as well as the arrival of new
technologies, particularly the Internet, consumers have become better informed than ever, and as
a result, some of the traditional advertising methods are no longer as effective as they used to be
([Link]).
Instead, firms have increasingly employed other marketing tools, such as corporate sponsorship
of sports, arts and cultural events to name a few. Sponsorship is claimed to be the world’s fastest
growing form of marketing, and in 2001, worldwide spending was estimated to be as much as
$24.6 billion. Moreover, sponsorship activities are applied with the belief that companies can

15
enter international markets and appeal to local consumer preferences (Dolphin 2003). This
promotional tool has proved to be successful in reaching a large global audience, and seeing as
consumer behaviour differ greatly in preferences and product choices, it is apparent why
sponsorship has outperformed other marketing methods. Yet, as a result of globalization, the use
of advertisement across cultural borders has grown immensely, and while one expert claims that
the average person is daily exposed to 1,600 advertisements, another expert estimates the total
number to be as much as 5,000 a day “from billboards to bumper stickers to logos on caps and
T-shirts” Seeing as advertising clutter has increased tremendously and is more intense than ever,
it is vital that companies differentiate themselves from competitors
by creating even more powerful, entertaining, and innovative advertisement messages.
However, this has proven to be very costly, especially within highly competitive product
markets, such as the soft-drink industry, which requires higher advertising budgets just to stay
even with competitors. Examples of such companies that spend billion of dollars on advertising
in order to stay key players in their industry are The Coca-Cola Company and PepsiCo. Not only
are Coca-Cola and Pepsi dominant market leaders on the worldwide beverage market, but they
are also two of the most notable and widely sold commercial brands in the world and annually
spend billions of dollars on advertising campaigns. In 2004, Coca-Cola’s worldwide advertising
budget exceeded $1.5 billion, while
Pepsi’s advertising expenditure totaled $1.3 billion ([Link]). Coca-
Cola’s advertising has always been celebrated globally, and introduced its first advertising theme
in the early 1900's and has since seen plenty of popular themes that have become recognized
worldwide ([Link]). Today, Coca-Cola depends heavily on “images of happiness and
togetherness, tradition and nationalism”, whereas Pepsi relies more on the appeal of celebrities,
popular music, and young people in their television commercials.

Problem Discussion
Not only can it be difficult to understand consumer behaviour and target groups’ needs on the
domestic market, but for multi-national companies, this is an even greater struggle. Despite the
fact that most of the world’s consumers have certain things in common, their values and
attitudes, as well as behaviour often differ. As a result, it is vital that international marketers
understand these differences and adapt their marketing strategies accordingly. Failure to do so
could result in disaster for a company’s international products and marketing programs. More
specifically, the degree to which international advertisement should be adjusted in accordance to
distinctive consumer characteristics in different countries is of great concern for many companies
(Armstrong et al. 2005). Consequently, the debate about whether to standardize or adapt an
advertising campaign has come to dominate the area within the international marketing literature
for decades.

16
 Although some notable international advertising campaigns have been successful, most
multinational companies have difficulties in targeting and stimulating consumers from various
countries through a standardized marketing program. Moreover, as today’s economies are
becoming more entwined than ever, any possible method that can be used in supporting the
building of global brands is appealing. One of the primary objectives that international marketers
have is to create an image that is familiar worldwide, but at the same time associated with
explicit meanings. Although advertising is still the number
one communication tool for businesses, immense changes within, for instance, technology has
required companies to implement other promotional strategies other than traditional marketing
communication tools. Moreover, employing a mixture of all marketing communications
components in order to sustain and build competitive advantages. One such promotional strategy
is that of sponsorship, which to some extent share similar objectives to advertising, such as
sustaining and building corporate awareness. Although both advertisement and sponsorship
messages are delivered to a greater audience, the later persuades its contexts more indirectly and
implicitly. Moreover. claim that “messages sent by companies, are controlled to a greater extent
in the case of advertising than in the case of sponsorship even though sponsorships are being
designed to offer more precise, less cluttered ways for marketers to promote products and
services through sampling, demonstration, contests, and many interactive, educational, and
family activities”. Although it is believed by many that sponsorship has the potential to become
the marketing communication tool of the 21st century, research remains without theoretical base
and a clear definition of sponsorship does not exist.
The majority of the advertisement research that exist merely suggest which advertisement is the
best amid those that are evaluated, and despite the fact that one advertisement might be more
memorable or cause more attention than others, this does not imply that there is a definite
relationship to consumer preferences and sales success (Hartley, 2001). The majority of the
sponsorship research has focused on “consumer awareness of sponsors and perceptions of the
sponsor’s image” and accordingly there is little evidence
concerning the effect a company’s sponsorship activities have on consumers’ attitudes and
buying behaviour. Although demographic segmentation continues to have an influential role
within the marketing theory, the majority of the research focuses on the way in which
demographic variables affect marketing communications, particularly that of gender and
advertising. Merely little research can be found within the other demographic variables and thus
age segmentation theory is relatively limited. As a result, more knowledge about factors
affecting consumer buying behaviour is needed. Thus we propose the following question: to
what extent do advertising, sponsorship, brand, and age affect consumer preferences.
 This project is an extensive research on the marketing strategies of the two Cola giants Pepsi and
Coca Cola. It covers an extensive survey and depicts all graphs, fact and figures of two
companies. It begins with the introduction of soft drink industry and introduction of these two
companies of soft drink industry. It covers some of the major strategies adopted by Pepsi and
Coca-Cola like their pricing policy, sales promotion and advertising policy, distribution policy
etc. The project has been made interesting with the inclusion of the topics, which covers the 4P’s
17
of marketing. The major players in the soft drink industry in India are Coke and Pepsi. Pepsi
holds the major market share followed by Coke. They have a cut throat competition between
themselves. Whatever strategy is followed by one company, it is copied by the other. Sample of
to brands were selected on the basis of their uses and notice ability One of the selected brands is
NO1 brand in their respective product categories the other one brand is close competitor of the
No 1 brands. Total sample of size of 200 respondents selected on the basic of convenience was
surveyed which include consumers. Data was collected from secondary as well as primary
sources. Structure questionnaire was use to collect primary data.

In the modern urban culture consumption of soft drinks particularly among younger generation
has become very popular. Soft drinks in various flavors and tastes are widely patronized by
urbane population at various occasions like dinner parties, marriages, social get together,
birthday calibration etc. children of all ages and groups are especially attracted by the mere
mention of the word soft drinks. With the growing popularity of soft drinks, the technology of its
production, preservation, transportation and or marketing in the recent years has witnessed
phenomenal changes. The so-called competition for this product in the market is from different
other brands. Mass media, particularly the emergence of television, has contribute to a large
extent of the ever growing demand for soft drinks the attractive jingles and sport make the large
audience remember this product at all times. It is expected that with the sort of mass advertising,
reaching almost the entire country and offering various varieties annual demand for the product
is expected to rise sharply in the times to come. In any marketing situation, the behavioral /
environmental variables relating to consumers, competition and environment are constantly
influx. The competitors in a given industry may be making many tactical maneuvers in market
all the time. They 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.

The Coca-Cola Company  is the world’s largest manufacturer, distributor, and marketer of non-
alcoholic beverage concentrates and syrups. Based in Atlanta, Georgia, KO sells concentrated
forms of its beverages to bottlers who then produce, package, and sell the finished products to
retailers. The Coca-Cola Company operates in over 200 countries and sells more than 400
different brands that produce over 3000 different products, including the famous Coca-Cola and
Sprite lines of soft drinks. 

Growing consumer preference for healthier drinks and increasingly saturated markets has

resulted in slowing growth rates for sales of carbonated soft drinks (abbreviated as CSD), which
constitutes 78% of KO’s sales. [2]KO’s profits are also vulnerable to the volatile costs for the raw
materials used to make drinks - the corn syrupused as a sweetener, the aluminum used in cans,
and the plastic used in bottles. Furthermore, decreased consumer spending in Coke's large North

18
American market compounds the challenge of rising costs and a weak economic
environment. Finally, Coca-Cola earns approximately 75% of revenue from international sales,
exposing it to currency fluctuations, which are particularly adverse with a stronger U.S. Dollar
(USD). 

Despite these challenges, Coca-Cola has remained profitable. Though the non-CSD market is
growing quickly, the traditional CSD market is still large in terms of both revenues and volume
and highly lucrative. The size and variety of KO’s offerings in the CSD category, coupled with
the unparalleled brand equity of the Coca-Cola trademark, has allowed KO to maintain its share
of this important market. KO has also responded to consumers’ changing tastes with new, non-
CSD product launches and acquisitions such as that of Glaceau. Strong international growth has
also more than offset a weak domestic market.

The Coca-Cola Company produces over 400 brands of non-alcoholic beverages, including
carbonated and non-carbonated beverages, such as ready-to-drink juices, coffee drinks, tea and
bottled water. Under these 400+ brands, there are more than 3,000 different beverage
products. Most of KO's beverage portfolio is composed of CSD, though the company has been
expanding into the non-CSD category in response to a shift in consumer demand and a greater
emphasis on healthy options.

The Coca-Cola Company’s profitability can be affected both directly and indirectly by the costs
of various production inputs. KO itself is responsible for purchasing the raw materials used to
make its concentrates and syrups. Variations in the prices for these goods can affect the
company’s total cost of production as well as its profit margins. Changes in the production costs
of bottlers can also impact KO’s profitability, though in a more indirect way. If the raw materials
necessary for bottling become more expensive, the bottler may be forced to drastically raise
prices to compensate. Such a price increase would likely hurt KO and provide a possible
incentive for consumers to switch to other companies’ beverages. Aluminum, corn, and PET
resin are three examples of input costs that could have significant bearing on the Coca-Cola
Company’s profit margins.

Another trend affecting Coca-Cola is the relative strength of the U.S. Dollar (USD) . Although
the company is based in the US, KO derives about 75% of its operating income from outside
United States. Because of this, the company is very sensitive to the strength of the dollar. As
foreign currencies weaken relative to the dollar, goods sold in foreign markets are suddenly
worth fewer dollars back in the US, lowering earnings. Thus, if the dollar strengthens, it has a
negative effect on KO's earnings.

KO has broad exposure to foreign currencies and actively hedges a large portion of these to
avoid wide swings in earnings from currency fluctuations. Although this hedging insulates it

19
from the potential downside of a strengthening dollar, it also limits larger gains from drastic
downswings in the dollar's value.

20
LITERATURE REVIEW

21
 Literature review
Pepsico is a world leader in convenient foods and bevereges ,with 2005 revenues more then $ 29
billion and 153,000 [Link] company consist of frito –lay north America ,Pepsico
bevereges north America,Pepsico International and Ouakal foods North America ,Pespsico
brands or aviable in nearly 200 countries and territories and generate sales at the reatil levels of
about $ 78 billions .May of Pepsico brand name are more then 100 years old but the corporation
is relatively young .Pepsico was founded in 1965 through the merger of the Pepsi-Cola and frito
–lay Tropicana was aquarie in 1998 and Pepsico merged with the Quaker oats
company,including gatorate in 2001.

There are research studies that document the transition of multinational companies into
transnational companies that are highly responsive to stake holders concerns. In the past most of
the multinational companies were focused on trying to penetrate global markets with
standardized products by calling it a ‘global offer’. In addition they also tried to reap the benefits
of economies of scale and experience curve effects. Theodore Levitt (1984) proposed to
multinational companies that they continue offering standardized products with the help of
marketing strategies and not to design and sell customized or localized products. C.K Prahalad
and Kenneth Lieberthal (2003) in their article “The end of corporate imperialism” have felt that
western multinational companies could have done better by understanding the distinctive
environment of emerging countries like India and China. They argued that these firms have been
imposing concepts, products, ideas developed for their home country in foreign markets. They
charged that these multinational firms could have targeted a smaller segment of relatively
affluent customers who are at par with western consumers in terms of purchasing power and
lifestyle. Researchers have also explored the various benefits of localization that accrue to a
localized brand such as larger brand equity, customer satisfaction, and customer and employee
commitment to the product or brand, or to the company. It’s been opined that localization
strategies are very much required for value creation/addition, and hence it is termed as “value-
based localization” instead of “cost-based localization” (Lalit M. Johri and Phallapa Petison,
2007). One of best theories on such localization lines has been the integration responsiveness
framework proposed by C.K Prahalad & Doz (1987) which has given great insight &
recommendations for the MNC’s in managing integration pressure from home country & local
responsiveness pressure from host country. Research conducted by Dr. Ming-Chu Yu (2005) has
concluded that MNC’s can be classified based on the extent to which they are integrated with
their head quarters and the degree of local responsiveness. The extremely integrated and highly
local responsive MNC’s come under ‘Active subsidiaries’ category, subsidiaries with extreme
local responsiveness and very less integration are named as Autonomous subsidiaries’ &
extremely integrated, but very less local responsive are categorized as ‘Respective subsidiaries’.
Bakker, B. A. (1977) has found that product standardization principle can be applied more in
Business or Industrial Marketing than in targeting end consumer segments. Industrial customers
being more rational, knowledgeable, are prone to looking at more of a product’s functional

22
properties rather than aesthetics. It has also been proposed that some companies can identify
homogenous markets & target those similar markets and can manage without offering
customized products (Subhash C. Jain, 1989). Inventory management, sourcing & supply chain
complexities are some of the key issues which companies encounter when they take the path to
customizing products for different markets. An inventory model has been developed at Hewlett-
Packard (HP) Company which takes into consideration all the stages right from product design
and development, then eventual customization, both operational activities & the entire supply
chain. This study conducted by Hau Lee, Corey Bellington, and Brent Carter (1993) has shown
the positive side of customization by exploring the benefits of innovative designs cashing in on
localization concepts. The results at HP were found to be very promising.

HINDUSTAN BEVERAGE S ADAPTATION STRATEGIES

For Coca-Cola company Indian market has been promising and overwhelming. India has
become an important part of their growth story by contributing 13% of total volume of the
Eurasia and Africa Group. The performance of Indian subsidiary has shown consistent growth
since past 19 quarters and there was 9% growth of unit case volume during January- March of
this year. At present India is among top 10 growth markets and chairman and CEO of The Coca-
Cola Company Muhtar Kent is confident of India entering its top 5 markets in a span of five
years.
NATIONAL AND INTERNATIONAL IMAGE:
PEPSI-THE INDIAN EXPERIENCE
 Pepsi is one of the most well known brands in the world today available in over 160
countries. The company has an extremely positive outlook for India. "Outside North
America two of our largest and fastest growing businesses are in India and China,
which include more than a third of the world’s population." (PepsiCo’s annual
report, 1999).
 This reflects that India holds a central position in Pepsi’s corporate strategy. India is a
key market for PepsiCo, and at the same time the company has added value to Indian
agriculture and industry. PepsiCo entered India in 1989 and is concentrating in three
focus areas – Soft drink concentrate, Snack foods and Vegetable and Food processing.
 Faced with the existing policy framework at the time, the company entered the Indian
market through a joint venture with Voltas and Punjab Agro Industries. With the
introduction of the liberalization policies since 1991, Pepsi took complete control of its
operations. The government has approved more than US$ 400 million worth of
investments of which over US$ 330 million have already flown in.
 One of PepsiCo’s key strategies was to develop a completely local management team.
Pepsi has 19 company owned factories while their Indian bottling partners own 21. The
two advertisements tags: ‘yehihai right choice baby’ and ‘nothing official about it’
immediately ring a bell- it’s got to be Pepsi.

23
 The advertisement tag ‘yehihai right choice baby’ was the first ‘Hinglish’ slogan ever
used in the in the Indian market. This slogan proved to be the best suited one for Pepsi
and it was a mega hit and at that moment of time. Pepsi in a short span of its operations
in India has found a place in the hearts and minds of the Indian consumers. The success
has primarily been due to the innovative and passionate Indian team, which has been built
over the years. Pepsi is a trendsetter managed and run by Indians, where important
decisions are taken locally. Pepsi started its operations in India in 1989 and since then
PepsiCo has set up a fully integrated operation in India viz. Manufacturing, Research &
Development, Marketing, Distribution and Franchising- covering fruit/vegetable
processing, Exports, Snack, and Foods & Beverages. In the mean time Pizza Hut and
Frito Lay’s are the examples in this regard only Pepsi has 40 bottling plants in India, out
of which 16 are company owned and 24 are owned by Indian franchisees. One of the
major players in franchisee is RKJ Group The RKJ group is India's leading supplier of
retailer brand Carbonated and Non-Carbonated soft drinks, with beverage manufacturing
facilities in India and Nepal. Its experience in the beverage industry dates back to the
sixties when it had the first franchise at Agra. It has the license to supply beverages in the
territories of Western U.P., part of M.P., half of Haryana, whole of Rajasthan, Goa, 3
districts of Maharashtra, 9 districts of Karnataka and whole of Nepal. The group has in
total 18 bottling plants in India & Nepal and is responsible for producing and marketing
44% of Pepsi requirement in India. This group has brought name and fame to the Pepsi as
in all this regions Pepsi is at the commanding position and in the mean this group has
diversified itself into ice cream, suiting and shirting’s, restaurants, beer plant in Mauritius
& edible oil plant in Sri Lanka. Although Pepsi holdings over the years have become
diverse in such fields as the Snacks industry and Restaurants industry, this portfolio will
discuss its core business and its highly successful business of Beverages. The soft drink
industry customer base is probably the widest and deepest base in a world that is flooded
with some many categories. According to Beverage Digest the customer base for soft
drinks is a whopping 95% of regular users in the United States. This represents a large
field of potential customers for Pepsi Cola. Pepsi prefers to segment itself as the
beverage choice of the “New Generation”, “Generation Next”, or just as the “Pepsi
Generation”. These terms adopted in Pepsi’s advertising campaigns are referring to the
markets that marketers refer to as Generation X. The Generation X consumer is profiled
to be between the ages of 18 to 29. They have high expectations in life and are very
mobile and active. They adopt a lifestyle of living for today and not worrying about long-
term goals. Those Pepsi’s main emphasis on this segment they also have a focus on the
12 to 18 year old market. Pepsi believes if they can get this market to adopt their product
then they could establish a loyal customer for life. Pepsi Cola throughout its 100 years of
existence has developed much strength. One of the strengths that have developed Pepsi
into such a large corporation is a strong franchise system. The strong franchise system
was the backbone of success along with a great entrepreneur spirit. Pepsi’s franchise

24
system and distributors is credited to bring Pepsi from a 7,968 gallons of soda sold in
1903 to nearly 5 billion gallons in the year of 1997. Pepsi also has the luxury to spend
225 million dollars in advertising a year. This enormous ad budget allows Pepsi to
reinforce their products with reminder advertising and promotions. This large budget also
allows Pepsi to introduce new products and very quickly make the consumer become
aware of their new products. Pepsi also has had the good fortune of making very wise
investments. Some of the best investments have been in their acquiring several large fast
food restaurants. They have also made wise investments in snack food companies like
Frito Lay, which at present time is the largest snack company in the world. Probably
high on the list of strengths is Pepsi’s beverage line up. The "cola wars," which describes
the on-going battle between Coca-Cola and Pepsi for supremacy in the soft drink
industry, date back to the 1950s when Pepsi's corporate focus became "Beat Coke"
(Yoffie,2004). Since then, they have battled domestically and globally for market share
and sales, with a tremendous amount at stake: the soft drink industry annually produces
approximately 10.1 billion cases of soft drinks domestically, with a total U.S. retail value
of $65 billion. Of that annual dollar total, the "cola" flavors represent close to a 70%
market share, followed distantly by the lemon/lime, citrus, pepper, root beer, and orange
flavored soft drinks (Yoffie, 2004). Civen the amount at stake, the "cola wars" are fought
daily between Coca-Cola and Pepsi-Cola on a variety of fronts, as illustrated below:
There seem to be no secrets in the beverage category, with Coca-Cola and Pepsi typically
releasing new products in unison. For example, in 2003 when Coca-Cola introduced
Vanilla Coke and Sprite Re-Mix, Pepsi simultaneously countered by introducing
Mountain Dew Live Wire, Pepsi Blue, and Sierra Mist (Chura, 2003). Within the last tive
years, both Coca- Cola and Pepsi also introduced their own brands of bottled waters
(Aquafma and Dasani, respectively). More recently, responding to the low-carb craze,
within weeks of Coca-Cola's launch of C2, Pepsi responded with Pepsi Edge (Moses,
2004). The "cola wars" even extends to product packaging: recently, both corporations
have tried to reduce costs and increase profit margins with the release of the streamlined
L5-liter bottle. PepsiCo first entered the Indian market in 1989, and since then the
company has become one of the largest food and beverage companies in the country.
Unfortunately for the company, some of the largest and longest running allegations of
PepsiCo’s wrongdoing are also based in India. The company and other competitors in the
industry have been heavily criticized about the quality and the quantity of the water used
in their beverages. In 2003, the Centre for Science and Environment (CSE) claimed that
the water which PepsiCo and other beverage companies in India were using contained
toxins. These toxins included pesticides that can contribute to cancer and the overall
breakdown of the immune system. According to the CSE, Pepsi soft drinks had 36 times
the level of pesticide residues permitted under European Union Regulations. However, no
such law bans the presence of pesticides in India. The issue is still under investigation
and the Indian government is trying to find a way to validly detect the pesticide levels
and ultimately ban any trace in a soft drink. This allegation of unsafe levels of pesticide
25
has been denied by both PepsiCo and the Coca-Cola Company. Although there is not yet
a law in place, PepsiCo found that it could still face considerable repercussions for what
its stakeholders perceive to be unethical activities. When pesticides were once again
reported in the soft drinks a few years later, the Indian state of Kerala temporarily banned
the sale of Pepsi and Coca-Cola. Five other Indian states also instituted partial bans.
These extreme actions on the part of the local governments reveal the care multinational
organizations must take to go above and beyond the national law in social responsibility.
Another major concern in India cited by farmers is that the Pepsi manufacturing plants
are polluting the lands, making them less fertile for growing crops. A study conducted in
1992 found that PepsiCo India and similar companies created 10,000 metric tons of
plastic through their manufacturing and importation processes. About 60-70 percent of
this plastic was recyclable, creating a large amount of unnecessary plastic waste. Similar
allegations of waste and pollution arose again in 2006, concerning both farmers and
government officials alike. Furthermore, the farmers complained that the PepsiCo plant
takes the groundwater to run its operations, making it, once again, harder to effectively
grow crops. In solving these ethical dilemmas, PepsiCo must take the different levels of
government into account, as well as the concerns of NGOs and individual Indians. A
thorough stakeholder orientation is needed to discover ethical courses of action and avoid
negative repercussions. world's soft drinks market is totally subject by just two players: -
Coke & Pepsi. Coke, 'The genuine thing' other than a century old was born eleven years
more on of its competitor & a century later on, still maintains the original lead. Pepsi,
'The challenger', even now poses as the hurried, young upstart & is struggle the cola was
as the drink for the younger age group. The tale of Coke was 1st geared up by pharmacist
John Styth Pemberton in 1886. at first, the drink was introduced in Atlanta, Georgia, &
was sell for five cents. In 1886, sales of Coke averaged 9 drinks per day. In 1891, Atlanta
entrepreneur Asa G C&ler acquire entire ownership of the Coke business & in 1919; The
Coca Cola alliance was sold to a set of investor for twenty five million. In the history 112
years, Coke has surrounded itself into American society. In 1994, the American
consumption was further than 773 million helping of Coke, diet Coke Sprite, Fanta, &
other foodstuffs of The Coca Cola Company. The company's beverage products consist
of bottled & canned beverages produced by independent & company owned bottling &
canning operations. A variety of products of the business are Coke, Coca Cola classic,
diet Cherry Coke, caffeine free Coca Cola classic, diet Coke, caffeine free diet Coke,
Cherry Coke Fanta & soft drinks, Sprite, diet Sprite, Mr. PiBB, Mello Yellow, TAB,
Fresca, caffeine free Coca Cola, Barq's root beer & other flavors, Surge, PowerAde,
Fruitopia, Minute Maid flavors, Saryusaisai, Aquarius, Bonaqa &other products
developed for particular countries. In 1888, 3 versions of Coca Cola sold by 3 part
businesses were on the market. Asa Griggs C & lerobtain a stake in Pemberton's
corporation in 1887 & integrated it as the Coca Cola business in 1888. The similar year,
while suffering from an constant habit to morphine Pemberton sold the rights a 2nd time
to 4 extra businessmen: J.C. Mayfield, A.O. Murphy, C.O. Mullahy & E.H. Blood worth.
26
In the meantime, Pemberton's alcoholic sons Charley Pemberton start selling his personal
story of the manufactured goods. In 1892 C&ler integrated a second company, The Coca
Cola Company, & in 1910 C&ler had the earliest report of the company burn, further
obscuring its lawful origins. By the position of its 50th anniversary, the drink had reached
the position of a nationwide icon in the USA. In 1935, it was expert kosher by Rabbi
Tobias Geffen, later than the company made tiny changes in the sourcing of some
ingredients. On April 23, 1985, Coca Cola, among lot publicity, attempted to modify the
method of the drink with "New Coke". Follow-up taste test showing that the majority
consumers favored the taste of New Coke together Coke & Pepsi, but Coca Cola
administration was not ready for the public's wistfulness for the older drink, leading to a
criticism. The company gave in to protests & returned to a difference of the old formula,
below the name “Coca Cola Classic” on 10 July, 1985. On 7th February, 2005, the Coca
Cola Company publicize that in the 2nd quarter of 2005 they designed to start a Diet
Coke product sugared with the artificial sweetener sucralose, the similar stimulus at
present use in Pepsi One. On 21 March, 2005, it announces 1 more diet product, Coca
Cola Zero, sweetened to a certain extent with a mix of aspartame & acesulfame
potassium. In 2007, Coca Cola begin to put up for sale an innovative "healthy soda" Diet
Coke with vitamins B12, niacin, magnesium, and B6, plus zinc, marketed as "Diet Coke
Plus." In November 2009, due to a clash over general prices of Coca Cola products,
Costco closed restocking its shelves with Coke & Diet Coke, However, some Costco
locations (like the ones in Tucson, Arizona sell imported Coca Cola from Mexico.
PepsiCo organization initiated this project to assess the market potentiality of Pepsi in the
present market. The main motive of this project is to identify the potentiality of the Pepsi
and their other product those they are producing. The project methodology involved
carrying out the preliminary research to gain insight into the present market sub segment,
current trends, growth, players and potential. Analyzing the requirement and designing
questionnaire. Taking interviews, conducting retailers interviews of different type of
demographic factors under like age, income, status, Collating & analyzing data and
identifying leads that qualifying for an offering and formulating recommendation for
S.M.V. Beverages, Jamshedpur. In the findings researchers got that Pepsi company is
one of the best soft drink company , because it maintain the quality, taste and also
the Company is maintain good relationship with retailers and they are also distributing
their product to their retailers when they want and the Company also provide them in time.
Theory is important, because it enhances our understanding of business phenomena and
helps managers to think about what they should do. Summer training or internship
training program provides opportunities to apply this theory into the real business
practice. In the present scenario of competitive marketing, every business institution
requires to prepare strategies for efficiently utilizing their available resources and
environmental opportunities. At this stage of my learning process I also feel needs for
knowing different business strategies that a business organization follows. In this
training period I got opportunities to study on some marketing strategies of PepsiCo. And
27
in this report I am going to explain some of those strategies which I had applied in
practical during my summer training program. In the world. PepsiCo was founded by
Caleb Bradham in 1902 in USA. Today PepsiCo and its affiliates operate in more than
140 countries in the world and generate revenues in excess of $ 40 Billion. In its pursuit
of never ending growth and expansion, PepsiCo entered India in 1989 in a joint venture
with Punjab Government. However, PepsiCo India very soon started its beverage
operations in collaboration with the R K Jaipuria group. Soon after entering the beverage
segment PepsiCo Established its dominance in the market owing to its expertise in sales,
marketing, operations and local collaboration. PepsiCo maintained its market dominance
for many more years to come. However, this advantage slipped and PepsiCo had to
concede the market leadership to Coca Cola India. Several actors were responsible for
this development. But, the most important are; Distribution channel is having an
important role in positioning of the product because we know that distribution channel is
tool by which we can make reach our product to the final consumers Discontinuation of
slums in the distribution network by PepsiCo. This move by PepsiCo adversely affected
its position of a market leader because while PepsiCo discontinued the use of Slums in its
distribution network, Coke continued it and within one year, it was able to snatch
considerable market share from PepsiCo. Acquisition of well-established and favored
brands like Thumps Up and Limca by Coca Cola India. These two brands still constitute
a bulk of sales for Coca Cola India. To explore the reasons behind these developments
this study will analyze the marketing initiatives and policies of PepsiCo India in detail
with particular focus on its partner relationship management. The above-mentioned
objectives can be achieved by carrying a proper and planned research involving different
types and methods. The data collected for laid the foundations for the study and gave a
platform for the analysis and findings which lead to the fulfillment of the objectives. The
data collected for research is primary and secondary. Primary data is collected by
observation, interviews and questionnaires. The data collection and analysis paves way
for the recommendation ad conclusion of the study that reveals some important findings
regarding the strategy and corporate structure and strategy of PepsiCo [Link] changing
beverage marketplace has resulted in some major transformations amongst the industry’s
chief competitors. The Coca-Cola Company and PepsiCo Inc. have both recognized the
changes and have taken action to preserve their success with their all-important systems
of bottlers. We expect these changes to be beneficial including the opportunity to focus
on innovation and to improve the cost effectiveness of bringing the product to market. In
1899, two lawyers from Tennessee secured exclusive rights to bottle and sell Coca-Cola
for only one dollar . Asa Candler, then President of The Coca-Cola Company, was not
convinced that selling the product in bottles was the way to go. No one could have
predicted how popular Coca-Cola and its main competitor, Pepsi-Cola, would become.
The relationship between company and bottler has always been very important. Today,
54 billion beverages of all types are served every day. 1 Products from PepsiCo Inc. (PEP)
and The Coca-Cola Company (KO) account for more than two thirds of the sales in the
28
carbonated soft drink (CSD) category.2 These companies have battled with each other for
many years and in the process have had to adapt to consumer shifts and increasing
complexity concerning product distribution. Once again, the marketplace for non-
alcoholic drinks in North America has evolved away from the current model. To achieve
longer term profitability and growth, PepsiCo and The Coca-Cola Company have both
decided to buy the majority of their North American bottling operations. In this report,
we will explain how the market has changed and why we expect PepsiCo and The Coca-
Cola Company to be better off in the future. To begin, we need to explain the traditional
role of the parent company and its system of bottlers. The parent company (The Coca-
Cola Company, PepsiCo), also called the “concentrate company,” is basically in charge
of producing the concentrate or syrup that is used in a manufacturing process which ends
up as a bottle or can of Coke or Pepsi on a shelf in a store. More importantly, it is the
concentrate company’s job to create demand through advertising, marketing, and
strategic planning. The bottlers buy the concentrate and then manufacture the product so
that it can be distributed to a network of retailers and dealers. One major change that has
taken place has been the consolidation of the retail industry. In particular, the discount
retailers (Walmart & Target) have allocated a larger portion of square footage to food.
For example, about half of 2009 revenues for Walmart (WMT) was attributed to grocery.
This compares to 28% of revenues only five years ago. For Target (TGT), food accounts
for 16% of sales. Currently, Walmart is the largest grocer in the U.S. with about double
the market share of the next largest competitor, Kroger (KR). In 2001, Walmart and
Kroger were neck and neck. In 2007, the top fifteen food retailers accounted for 64.4% of
U.S. sales compared to 50.1% in 2001. Exhibit 1 in the original PDF shows the evolution
of market share from 2001-2007.3 The growth of Walmart is especially impressive. In
North America, 19% of revenues for PepsiCo were allocated to Walmart (including
Sam’s Club) up from 13% in 2006. 3 In short, the food retail segment has become more
concentrated and more powerful. The demands for better service from The Coca-Cola
Company and PepsiCo have increased. Retailers require more flexibility, innovation, and
speed. Consumer beverage choices have shifted production away from the bottlers.
Consumers have become more health conscious. Consumers are now more concerned
about calories and are interested in drinks that are convenient and healthy. Consumers are
buying less carbonated soft drinks and more in new beverage categories. These new
categories of beverages include sports drinks, liquid tea, liquid coffee, energy drinks, and
bottled water. Exhibit 2 in the original PDF illustrates the change in market share over a
five year time frame. Overall, The Coca-Cola Company and PepsiCo have maintained
their total share of the non-alcoholic beverage industry through product expansions,
innovation, and acquisitions, including transactions such as PepsiCo’s acquisition of
Gatorade and the Coca-Cola Company’s acquisition of Odwalla. The manufacturing
process to produce a can of Coke is different from producing a bottle of Powerade. The
added complexity of certain products has shifted the manufacturing process away from
the bottler. Generally, most sports drinks, teas, juices, and dairy based drinks are
29
 manufactured at the concentrate company while carbonated drinks and bottled water are
manufactured by the bottler. Those drinks produced at the concentrate company are
called, finished goods. These changes have resulted in less profit for the bottlers. The
bottlers did not benefit from the growth and higher profitability in finished goods.
Capacity utilization has been down with lack of growth in carbonated soft drinks. Also,
bottled water, which was able to offset some of the lower growth in carbonated soft
drinks, has been slowing over the last couple of years. In the future, most analysts in this
sector agree that higher growth products will require a more complex manufacturing
process. Under the old model, this would have been bad for bottlers. Years ago, most
large bottlers made a significant capital investment which counted on sustained growth in
carbonated soft drinks. Profit strained, the bottlers were less willing this time around to
invest in new beverage categories. This was one of the reasons why the bottlers missed
out on the popularity of noncarbonated soft drinks. The combination of concentrate
company and bottler should yield cost savings and efficiencies allowing for additional
reinvestment. Overcapacity and redundant distribution will be rationalized. One example
is the sale of both fountain and bottled products to the same location by two different
distribution channels. Going forward, one channel will service that particular customer.
The combination should lead to a greater use of warehouse distribution versus the current
direct-store-delivery system, which is used by the bottlers. The warehouse delivery
system (product gets delivered to the retailer’s distribution center and the retailer ships
the product to the store) is one that is in demand from large retailers given the lower cost,
leaving the retailer with the opportunity to extract more profits from the customer without
raising prices. In addition, a more efficient distribution system and less negotiation
between organizations (pricing/volume decisions) should allow the product to reach the
market more [Link] the ownership structure, the concentrate company and
bottler relationship has always been strong. Both entities need each other to survive. We
believe the recent transactions are a positive strategic move for both The Coca-Cola
Company and PepsiCo and for the industry. The Coca-Cola Company and PepsiCo are
clearly protecting their investment in their key bottlers and securing their strategic
position given changes in the consumer and retailers. Going forward, we expect that these
companies will continue to adapt to succeed. These particular transactions make sense
and should allow these companies to remain competitive and innovative.
 That company’s 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 Banaras, Pepsi outlets are on one side & all the other colas put together on the
other. While coke executive scruff at Pepsi’s claims as well as targets, industry observers
are of the view that Pepsi has definitely stolen a march over its competitor coke. Apart
from numbers, Pepsi has made qualitative gains. The foremost is its image. This image
turnaround is no small achievements, considering that since it was established in1989,
taking the hardship route prior to liberalization and weighed down by export

30
 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 dhere 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 India’s apple drink Apella. CSBI is now with orange (crush), and Schweppes
soda in the market.

 Range 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 it because generally the consumption of any soft drink is an impulse decision
and not predetermined one. VISIBILITY is the presence felt, if any outlet has a particular
brand of soft drink say- Pepsi cola and this brand is not displayed in the outlet, then its
availability is of no use. The soft drink must be shown off properly and attractively so as
to catch the attention of the consumer immediately 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. COOLING 14 Cooling  Visibility
Availability. As orange drinks are the smallest of non-cola categories that is Rs. 1100
crore markets 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.

 As the soft drinks are consumed chilled so cooling them plays a vital role in boosting up
the sales. The brand, which is available chilled, gets more sales then the one which is not,
even if it is more preferred one. RANGE This is the last but not the least factor, which
affects the sale of the products of a particular company. Range availability means the
availability of all flavors in all sizes.

 HISTORY OF COCA-COLA Jon Styth Pemberton first introduced the refreshing taste
of Coca-Cola in Atlanta, Georgia it was May 1861 when the pharmacist concocted
caramel colored syrup in three–legged brass kettle in his backyard. He first distributed the

31
 new product by carrying Coca-Cola in a jug coin enjoys in a glass of Coca-Cola at the
soda fountain. Whether by design or accident, carbonated water was teamed with the new
syrup, producing a drink that was proclaimed “Delicious and Refreshing”. Dr.
Pemberton’s Partner and bookkeeper, Mr. Frank Robinson, suggested the name and
penned as “Coca-Cola” in the unique flowing script that is still famous worldwide today.
Dr. Pemberton’s sold 25 gallons of syrup, shipped in bright Red wooden kegs. Red has
been a distinctive color associated with the No.1 soft drink brand ever since. For his
efforts, Dr. Pemberton grossed $ 50 and spent $ 73.96 on advertising, by 1891, Atlanta
chemist as a G. Caner had acquired complete ownership of the Coca-Cola business. He
purchases it from the Dr. Pemberton family for $ 2300. Within 4 year his merchandising
flair helped to expand the consumption of Coca-Cola to over $25 million. Robert W.
woodruff become the president of the Coca-Cola company in 1923 and his more than six
decades of leadership took the business of commercial success making.

 Coca-Cola an institution the world over. Coca-Cola begins as a never tonic, but candy
merchant Joseph A. Biedenharn of Mississippi was looking for awry to serve refreshing
beverages. He responded to this demand began offering bottle Coca-Cola using syrup
shipped from Atlanta, during a hot summer in 1894.1894 … A modest start for a bold
idea In a candy store in Vicksburg, Mississippi, brisk sales of the new fountain beverage
called Coca-Cola impressed the stores owner, Joseph A. Biedenharn. He began bottling
Coca-Cola to sell, using a common glass bottle called a Hutchinson. Biedenharn sent a
case to Asa Griggs Candler, who owned the Company. Candler thanked him but took no
action. One of his nephews already had urged that Coca-Cola be bottled, but Candler
focused on fountain sales.1899 … The first bottling agreement Two young attorneys
from Chattanooga, Tennessee believed they could build a business around bottling Coca-
Cola. In a meeting with Candler, Benjamin F. Thomas and Joseph B. Whitehead obtained
exclusive rights to bottle Coca-Cola across most of the United States (specifically
excluding Vicksburg) -- for the sum of one dollar. A third Chattanooga lawyer, John T.
Lupton, soon joined their venture.1900-1909 … Rapid growth the three pioneer bottlers
divided the country into territories and sold bottling rights to local entrepreneurs. Their
efforts were boosted by major progress in bottling technology, which improved efficiency
and product quality. By 1909, nearly 400 Coca-Cola bottling plants were operating, most
of them family-owned businesses. Some were open only during hot-weather months
when demand was high.

 Bottling overtakes fountain sales as the 1920s dawned, more than 1,000 Coca-Cola
bottlers were operating in the U.S. Their ideas and zeal fueled steady growth. Six-bottle
cartons were a huge hit after their1923 introduction. A few years later, open-top metal
coolers became the forerunners of automated vending machines. By the end of the 1920s,
bottle sales of Coca-Cola exceeded fountain sales.1920s and 30s … International
expansion Led by longtime Company leader Robert W. Woodruff, chief executive officer

32
 and chairman of the Board, the Company began a major push to establish bottling
operations outside the U.S. Plants were opened in France, Guatemala, Honduras, Mexico,
Belgium, Italy, Peru, Spain, Australia and South Africa. By the time World War II began,
Coca-Cola was being bottled in 44 countries.1940s … Post-war growth During the war,
64 bottling plants were set up around the world to supply the troops. This followed an
urgent request for bottling equipment and materials from GeneralEisenhowers base in
North Africa. Many of these war-time plants were later converted to civilian use,
permanently enlarging the bottling system and accelerating the growth of the Company
worldwide business.1960s … New brands introduced Following Fanta in the 1950s,
Sprite®, Minute Maid, Fresca and TaB joined brand Coca-Cola in the 1960s. Mr. Pibb
and Mello Yellow was added in the 1970s. The1980s brought diet Coke® and Cherry
Coke®, followed by POWERADE® and DASANI® in the 1990s. Today hundreds of
other brands are offered to meet consumer preferences in local markets around the world.

 1970s and 80s … Consolidation to serve customers As technology led to a global

economy, the retailers who sold Coca-Cola merged and evolved into international mega-
chains. Such customers required a new approach. In response, many small and medium-
size bottlers consolidated to better serve giant international customers. The Company
encouraged and invested in a number of bottler consolidations to assure that its largest
bottling partners would have capacity to lead the system in working with global
retailers.1990s … New and growing markets Political and economic changes opened vast
markets that were closed or under developed for decades. After the fall of the Berlin
Wall, the Company invested heavily to build plants in Eastern Europe. And as the century
closed, more than $1.5 billion was committed to new bottling facilities in Africa.21st
Century …The Coca-Cola bottling system grew up with roots deeply planted in local
communities. This heritage serves the Company well today as people seek brands that
honor local identity and the distinctiveness of local markets. As was true a century ago,
strong locally based relationships between Coca-Cola bottlers, customers and
communities are the foundation on which the entire business grows.

 COCA –COLA COMPANY PROFILE Keeping in view of tapping the Indian soft drink
market and also developing soft drinks as a drinking product among Indians. The Coca-
Cola in India has setup an independent organizations which is H.C.C & B.C.C with a
capital of 350 U.S.$ each by virtue of sellout decision of the passed managing director
Sh. S. C. Aggarwal. Hindustan Coca-Cola bottling (N-W) Pvt. Ltd. Naziabad took the
complete possession of this plant, land, machinery, & intellectuals on February 14’ 1998
and since then H.C.C, looking after all its affairs under company owned bottling plant to
establish integrated marketing system in the area.

 CORE BRANDS: Coca-Cola: Developed in a brass pot in 1886, coca-cola is the most
recognized and admired trademark around the globe. Not to mention the best selling soft

33
 drink in the world. Sprite: In 1961, a citrus-flavored drink made its U.S debut, using
“Sprite Boy “as inspiration for its name. This elf with silver hair and a big smile was used
in 1940sadvertising for Coca-Cola. Sprite is now the fastest growing major soft drink in
U.S and the world’s most popular lemon-lime soft drink. Fanta : The name “fanta “ was
first registered as a trademark in Germany in 1941 ,whenit was used for a few year for a
soft drink created from available materials and flavors .The name was then revived in
1955 in Naples, Italy, when it was used for the:” fanta“orange drink we know today. It is
now the trademark name for a line of flavored drinks around the world. Diet coke: The
extension of the coca-cola name began in 1982 with the introduction of diet coke (also
called coca-cola light in some countries). Diet coke quickly becomes the number – one
selling low –calorie soft drink in the world. 21

 FABULOUS FACTS ABOUT COCA-COLA1. The world’s largest spherical coca-cola

sign is in Nagoya, Japan a top the dial – Nagoya building in front of the Nagoya railway
station. The sing is a double sphere constructed from more then 46 tone of steel, more
940meter of neon tubing, and more then, 879 light bulbs. The outer shape features the
coca-cola logo and contour bottle, while the inner sphere portrays a comic scene with
twinkling planets and stars.2. One of the world’s largest signs for coca-cola is located on
a hill called “ELHACHA” in America, Chile. It is 400 feet wide and 131 feet high and is
made from 70,000, 26 ounce bottles.3. The first out door paint sign advertising coca-cola
still exists. It was painted in 1894 in Cartersville, Georgia.4. Coca-cola is one of the
world’s most recognizable trademarks recognized in countries that account for 98 percent
of the world’s population. 22

 If all the coca-cola ever produced were in 8- ounce bottles. And these bottles were
distributed to each person in the world. There would be 678 bottles or over 42 gallons for
each person.6. If all the coca-cola ever produced were in 8 – ounce bottles, placed side by
side and end to end to from a lane highway, it would wrap around the earth 82 times.7. If
all the coca-cola ever produced were flowing over Niagara fall at its normal rate of 105
million gallons per second instead of water, the falls would flow for about a day and a
half 38 hours and 46 minutes.8. The largest representation of the world’s best known
package 100 foot tall glass contour bottle is located at world of coca-cola, LAS VEGAS
23

 HISTORY IN INDIA 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 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 wondering our brands assumed an iconic
status in minds of world’s consumers.

34
 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 [Link]-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$100million in 2003 for its operations. 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
approximately6,000 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
manufactures 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.

 PROMISE BY COCA-COLA The coca-cola company exists to benefits and refreshes

every one it touches. The basic proposition of our business is simple, solid and timeless.
When we bring refreshment, value, joy and fun to our stakeholders then we successfully
nurture and protect our brand, particularly coca-cola. That is the key to fulfilling our
ultimate obligation to provide consistently attractive to the owner so four business. More
then a billion times every day, thirsty people around the world reach for coca-cola
products for refreshment. They deserve the highest Quality – every time. Our promise to
deliver that quality is the most important promise we make. and it involves a world-
wide , yet distinctively local , network of bottling partner , supplier , distributor and
retailers whose success is paramount to our own. Our investment in local communities in
over 200 countries totals billions of dollars in jobs, facilities, marketing, the purchase of
local good and services, and local business partnership. Always and every where , we
pursue continuous innovation in the products we offer the processes we use to make
them, the package we develop and the way we bring them to market .

 BRAND IN INDIAN ORIGINGOLD SPOT: this orange carbonate soft drink was
introduced in the early 1950c, and acquired by the Coca-Cola company in 1993, its tangy
taste has been popular with IndianteenagersLIMCA: It is thirst-quenching beverage

35
 features a fresh and light lemon-lime taste and lighthearted attitude. The limca brand was
introduced in 1971 and acquired by the coca-cola company in 1993.

 MAAZA: Maaza, launched in 1984 and acquired by the coca-cola company in 1993, is
anon carbonated mango soft drink with a rich, juice & natural mango taste. THUMPS
UP: in 1993, the Coca-Cola company acquired this brand, which was originally
introduced in 1977. Its strong and fizzy taste makes it unique carbonated Indian cola.

 PepsiCo is one the largest companies in the U.S. It figures amongst the largest
15companies worldwide according to the number of employees hired. It has a U.S.
Fortune rank of [Link] company profits for 1997 were $2.14 billion on revenues of
$20.92 billion and Pepsi is bottled in nearly 190 countries. PepsiCo is a world leader in
convenient snacks, foods and beverages with revenues of more than $43 billion and over
198,000employees. Take a journey through our past and see the key milestones that
define PepsiCo. PepsiCo is a world leader in the food chain business. It consists of many
companies amongst which the prominent once are Pepsi-Cola, Frito-Lay and Pepsi Food
International. The group is presently into two of the most profitable and profitable and
growing industries namely, beverages and snack foods. It has scores of big brands
available in nearly 150 countries across the globe. The group has established for itself
once of the strongest brands in various segments of its operations.

 The beverages segment primarily markets its Pepsi, Diet Pepsi, Mountain Dew and other
brands worldwide and 7-UP outside the U.S. markets. These are positioned in close
competition with Coca-Cola Inc. of USA. A point which is worth a mention is that Coca-
Cola gets 80% of its profits for International operations while the same figure for
PepsiCo stands at 6%. The segment is also in the bottling plants and distribution facilities
and also distributes the ready to drink tea products of Lipton in North America. In a joint
venture with orient spray juice products PepsiCo also manufactures and distributes fruit
juices. The snack food division manufactures and distributes and markets chips and other
snacks worldwide. The international operations of this segment extend to the markets of
Mexico, the UK and Canada. Frito-Lay represents this segment of PepsiCo. The
restaurant segment earlier primarily consists of the operations of the worldwide Pizza
Hut, Taco Bell and KFC chains. PFS. Pepsi company’s restaurant distribution operation,
supplies company owned and franchise restaurants in the U.S. The company ventured
into restaurant business with Taco Bell, KFC, Pizza Hut ended last year when they were
spanned off from the company. A packaged goods company comprised of Pepsi-Cola
Company and Frito-Lay will continue to bear the PepsiCo name. The move should
enhance both corporations ability to prosper with their own fully dedicated structure and
management team. 32

36
 PEPSICO IN INDIA PepsiCo gained entry to India in 1988 by creating a joint venture
with the Punjab government-owned Punjab Agro Industrial Corporation (PAIC) and
Voltas India Limited. This joint venture marketed and sold Lehar Pepsi until 1991, when
the use of foreign brands was allowed; PepsiCo bought out its partners and ended the
joint venture in [Link] claim that firstly Pepsi was banned from import in India, in
1970, for having refused to release the list of its ingredients and in 1993, the ban was
lifted, with Pepsi arriving on the market shortly afterwards. These controversies are a
reminder of "India sometimes acrimonious relationship with huge multinational
companies." Indeed, some argue that PepsiCo and The Coca-Cola Company have "been
major targets in part because they are well-known foreign companies that draw plenty of
attention."In 2003, the Centre for Science and Environment (CSE), a non-government a
organization in New Delhi, said aerated waters produced by soft drinks manufacturers in
India, including multinational giants PepsiCo and The Coca-Cola Company, contained.

 toxins, including lindane, DDT, malathion and chlorpyrifos — pesticides that can
contribute to cancer, a breakdown of the immune system and cause birth defects. Tested
products included Coke, Pepsi, 7 Up, Miranda, Fanta, Thumps Up, Limca, and
[Link] found that the Indian-produced Pepsis soft drink products had 36 times the
level of pesticide residues permitted under European Union regulations; Coca Colas 30
[Link] said it had tested the same products in the US and found no such residues.
However, this was the European standard for water, not for other drinks. No law bans the
presence of pesticides in drinks in India. The Coca-Cola Company and PepsiCo angrily
denied allegations that their products manufactured in India contained toxin levels far
above the norms permitted in the developed world. But an Indian parliamentary
committee, in 2004, backed up CSEs findings and a government-appointed committee, is
now trying to develop the world first pesticides standards for soft drinks. Coke and
PepsiCo opposed the move, arguing that lab tests aren’t reliable enough to detect minute
traces of pesticides in complex drinks. As of 2005, The Coca-Cola Company and
PepsiCo together hold 95% market share of soft-drink sales in India. PepsiCo has also
been accused by the Puthussery panchayat in the Palakkad district in Kerala, India, of
practicing "water piracy" due to its role in exploitation of ground water resources
resulting in scarcity of drinking water for thepanchayat residents, who have been
pressuring the government to close down the PepsiCo unit in the village. In 2006, the
CSE again found that soda drinks, including both Pepsi and Coca-Cola, had high levels of
pesticides in their drinks. Both PepsiCo and The Coca-Cola Company maintain that their
drinks are safe for consumption and have published newspaper advertisements that say
pesticide levels in their products are less than those in other foods such as tea, fruit and
dairy products. In the Indian state of Kerala, sale and production of Pepsi-Cola, along
with other soft drinks, was banned by the state government in 2006,but this was reversed
by the Kerala High Court merely a month later. Five other Indian states have announced
partial bans on the drinks in schools, colleges and hospitals.
37
 Brand Facts PepsiCo nourishes consumers with a range of products from tasty treats to
healthy eats that deliver enjoyment, nutrition, convenience as well as affordability The
group has built an expansive beverage and foods business. To support its operations,
PepsiCo has 42 bottling plants in India, of which 13 are company owned and 29 are
franchisee owned. In addition to this, PepsiCo’s Frito Lay 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. Beverages PepsiCo India’s expansive
portfolio includes iconic refreshment beverages Pepsi, 7 UP, Nimbooz, Miranda and
Mountain Dew, in addition to low calorie options such as Diet.

 Pepsi, hydrating and nutritional beverages such as Aquafina drinking water,

isotonicsports drinks - Gatorade, Tropicana100% fruit juices, and juice based Drinks –
Tropicana Nectars, Tropicana Twister and Slice. Local brands – Lehar EvervessSoda,
Dukes Lemonade and Mangola add to the diverse range of brands Foods PepsiCo’s food
division, 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.
The company’s high fiber breakfast cereal, Quaker Oats, and low fat and roasted snack
options enhance the healthful choices available to consumers. Frito Lay’ score products,
Lay’s, Kurkure, Uncle Chipps and Cheetos are cooked in Rice Bran Oil to 36

 significantly reduce saturated fats and all of its products contain voluntary nutritional
labeling on their packets QUICK FACTS • PepsiCo established its 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 42 bottling plants in India, of
which 13 are company owned & 29 franchisee owned • 3 State-of-the-art food plants in
Punjab, Maharashtra and West Bengal.

 PEPSI CO INDIA: A FORTUNE 500 COMPANY IN INDIA PepsiCo, which ranks

among the world’s five largest food and beverage companies with 16 brands, and its
partners have invested more than US$700 million in India - building businesses, which
today provide direct or indirect employment to more than 60,000 people. Since Pepsi’s
entry into the Indian market in 1989, several brands from its portfolio have become
established category leaders. Brand Pepsi is now the 2nd biggest brand in the country.
PepsiCo’s portfolio of beverage brands in India includes the flagship cola brand Pepsi;
Diet Pepsi; two flavors of Mirinda – Orange and Lemon; 7UP; Mountain Dew; packaged
drinking water – A quafina; variants of the fruit drink brand Slice; the 100 per cent fruit
juice brand Tropicana in several variants and the world’s leading sports drink Gatorade.

38
  Pepsi - Yeh Hai Youngistan Meri Jaan BRAND HISTORY Pepsi is a hundred year old
brand loved by over 200 million people worldwide. The largest single selling soft drink
brand in India is the ubiquitoussocialiserat every occasion. •Youngistan loves it. 200
million people worldwide love it. But what has made Pepsi the single largest selling soft
drink brand in India is actually a formula concocted a century ago in a far away
continent. • 1886, United States of America. Caleb Brad man, the man with a plan, got on
to formulate a blockbuster digestive drink and decided to call it Brad’s drink. It was this
doctor’s potion that was to become Pepsi Cola in 1898, and eventually, Pepsi in 1903. •
Pepsi has always played on the front foot and since its inception has come out with
revolutionary concepts like Diet, 2L bottles, recyclable plastic cola bottles and the
enviable My Can. BRAND ADVANTAGE • Pepsi has become a friend to the youth and
has led many youth cultures. Youngsters over the generations have grown up with Pepsi
and share an emotional connect with it, unlike any other cola brand. Be it parties,
hangouts, or just another day at home, a day is never complete without the fizz of Pepsi! •
Pepsi, Cricket and Bollywood have been joined at the hip since the beginning.

PEPSI PRODUCTS IN INDIA SLOGANS USED BY PEPSI COMPANY1898 Brads

Drink1903 Exhilarating, Invigorating, Aids Digestion1906 Original Pure Food Drink1908
Delicious and Healthful1915 For All Thirsts - Pepsi: Cola1919 Pepsi: Cola - It makes you
Scintillate1920 Drink Pepsi: Cola - It Will Satisfy You 42

 1928 Peps You Up!1929 Here Health!1932 Sparkling, Delicious1933 Its the Best Cola
Drink1934 Double Size Refreshing and Healthful1938 Join the Swing to Pepsi1939
Twice as Much for a Nickel1943 Bigger Drink, Better Taste1947 Its a Great American
Custom1949 Why Take Less When Pepsis Best?1950 More Bounce to the Ounce1954
The Light Refreshment Refreshing Without Filling1958 Be Sociable, Have a Pepsi1961
Now Its Pepsi for Those Who Think Young1963 Come Alive! Youre in the Pepsi
Generation1967 Taste that Beats the Others Cold, Pepsi Pours It On.1969 Youve got a
Lot to Live; Pepsis got a Lot to Give.

 1973 Join the Pepsi People Feeling Free1976 Have a Pepsi Day!1979 Catch That Pepsi
Spirit Take the Pepsi Challenge1981 Pepsis Got Your Taste for Life1983 Pepsi Now!
1984 The Choice of a New Generation1987 Americas Choice1989 A Generation
Ahead1992 Gotta Have It1993 Be Young, Have Fun, Drink Pepsi1995 Nothing Else is a
Pepsi1997 Generation Next1998 Same Great Taste 1999The Joy of Cola2000 The Joy of
Pepsi2003 Pepsi. Its the Cola2000-2003: "Aazadi dil ki" (Hindi- meaning "Freedom of
the Heart")(India)2003: "Its the Cola"/"Dare for More" (Pepsi Commercial)2003-2005:
"Yeh Pyas Hai Badi" (Hindi meaning "This thirst is too much") (India).

 "An ice cold Pepsi. Its better than sex!"2006-2007: "Why You Dogging Me"/"Taste the
one thats forever young"2007-2008: "More Happy"/"Taste the once thats forever

39
 young"2008: "Yeh Hai Youngistan Meri Jaan!" Hindi - meaning "This is the Young era
mydear" (India and Pakistan)2008: "Pepsi Stuff" Super Bowl Commercial2008: "Pepsi is
#1" TV commercial2008: "Pepsify karo gai!" Commercial (Hindi meaning "Wanna
Pepsify!")2008-2009: "Something for Everyone."2009-present: "Refresh everything" and
(during many commercials) "Every Generation Refreshes the World" THE RIVARLY
BEGINS: Coke Comes to India Coca-Cola comes to India with fanfare in the fifties. For
a number of days, The Hindustan Times and other newspapers of New Banaras carried
full page advertisement showing a big boy in uniform with a soft-drink crown as the cap.
There was no indication of the product. After a few days, Coke was introduced. It was an
entirely new drink which fascinated people. It soon became the national drink. For the
first time, a soft-drink was available from one corner of the country to another. The
person who brought Coca-Cola to India was the father of late Sardar Charanjit Singh,
Sardar Mohan Singh.

 practical man Mohan Singh realized that to popularize Coca-Cola, and make it a
bestseller it was necessary to “catch them young.” So he focused on youngsters in the
society. The company realized that to become a mass consumption product, one has to go
to the village. They gave much importance to the distributive network. The company
trucks supplied coke to even the remotest village. Few products appears to be more
similar than soft drinks, yet the Cola wars that mark the competition between Coke and
Pepsi show how even organizations with highly similar product can be differentiated by
their business strategies. Then comes battles over the issue of bottle size standardization.
Coke the arch rival tried to offering more Cola at a lower price. Pepsi which had some of
its early investment tied up in 250ml bottles, went the fountain way. The General bottle
size freed has settled at 300 ml. 100 ml more than the pre MNC standard. Fountain mix
dispensers, carry home bottles, even 1.50 plastic bottle with caps good enough to keep
them lying down and still preserve the fizz. It poured in vast sums to whip up its visibility
at the retail level, so that consumers were greeted virtually at every street corner by
Pepsi’s blue, red and white colors, because they have perception “the thing on display
Sells more.” Coca-Cola is, finally, redoing the real thing to the replicate the success that
it’s arch-rival, PepsiCo. Has achieved with its fast and furious marketing. But to win
them, Coke is copying Pepsi.

 MARKETING STATEGIES OF COKE AND PEPSI a) PRODUCT Coke was launched

in India in Agra, October 24, in 93, soon after its traditional all Indian launch of its Cola.
At the sparking new bottling plants at Hathra, near Agra. Coke was back with a bang
after its exit in 1977. Coke was planning to launch in next summer the orange drink,
Fanta-with theclear lemon drink, sprite, following later in the year.

 Coke already owns more brands than it will over need, since it has bought out Ramesh
Chauhan. Coke just needs to juggle these brands around dextrously to meet its objectives,

40
 to ensure that Pepsi does not gain market share in t Today, Cokes productline includes,
Coca-Cola, Thumps Up, Fanta, Gold Spot, Maaza, Citra, Sprite, BisleriClub Soda and
Diet Coke. PACKAGING Coca-Cola India Limited (CCIL) has bottled its Cola drink in
different sizes and different packaging i.e., 200 ml bottle, 300 ml. Bottle, 330 ml. Cans,
500 ml. Bottle fountain Pepsi, and bottles of 1 and 2 litre. PRODUCT POSITIONING
One important thing must be noticed that Thumps Up is a strong brand in western and
southern India, while Coca Cola is strong in Northern and Eastern India. With volumes of
Thumps Up being low in the capital, there are likely chances of Coca Cola slashing the
prices of Thumps Up to Rs. 5 and continue to sell Coca Cola at the same rate. Analysts
feel that this strategy may help Coke since it has 2 Cola brands in comparison to Pepsi
which has just one. Thumps Up accounts for 40% of Coca Cola company turn over,
followed by Coca Cola which has a 23% share and Limca which accounts for 17% of the
turn over of the company. (Thumps up being the local drink, its share in the market is
intact, forcing the company to service the brand, as it did last year Mr. Donald short
CEO, Coca Cola India, said that, " we will be absolutely comfortable if Thumps Up is
No. 1 brand for usin India in the year 2000. We will sell whatever consumers want us to".
Coca Cola India has positioned Thumps up as a beverage associated with adventure
because of its strong taste and also making it compete with Pepsi as even Pepsi is
associated with adventure, youth.

 PRICE The price being fixed by industry, leaving very little role for the players to play in
the setting of the price, in turn making it difficult for competitors to compete on the basis
of price. The fixed cost structure in Carbonated Soft Drinks Industry, and the intense
competition make it very difficult to change or alter the prices. The various costs incurred
by the individual company are almost unavoidable. These being the costs of concentrates,
standard bottling operations, distributor and bottlers commissions, distribution expenses
and the promotional and advertising expenditure (As far as Coke is concerned, it had to
incur a little more than Pepsi as Pepsi paved its way to India in 1989while Coke made a
come back in 1993.)Currently a 300 ml. Coke bottle is available for Rs. 6 to8 The 330
can was initially available for Rs. 13 and now, since the price has gave up to Rs. 18 per
can. The prices of500 m, 1 litre. And 2ltr being Rs. 15 Rs. 23 and Rs. 40 respectively
(according to the current survey). Dating back to ‘93, when Pepsi hiked the price of Pepsi
- Cola from Rs. 5 to Rs. 6per 250 ml. bottle in some parts of the country-including Agra.
Coke penetrated the market with price of Rs. 5 for a 300 ml. bottle, making it cheaper by
Rs. 1 and 50 ml. than Pepsi. Cokes strategy at that time being able to expand the
availability of soft drinks even in rural India. Cokes priority being to first increase the
number of drinks per drinker, and then the number of drinkers itself. Pepsi also tried this
but was trapped by a series of competitive price increase and changes in bottle sizes by
Parle. But the prices of soft drinks have shot up since Pepsis arrival and the current prices
are being mentioned as under.

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 Price list Name Bottle Size MRP (in Rs.)Coke Per Bottle 200 ml 6Coke 300 ml 10Coke
500 ml (Plastic / Glass) 22Coke 2 litre 60Diet Coke (Can) 330 ml Can 35Coke (Can) 330
ml Can 38 However, the trends may have been in the early 90s, now the prices of Pepsi
and Coke are the same making it difficult in future and present to compete on the basis of
price. c) PLACE Coke may have gained an early advantage over Pepsi since it took over
Parle in1994. Hence, it had ready access to over 2, 00,000 retailer outlets and 60 bottlers.
Coke was had a better distribution network, owing to the wide network of Parle drinks all
over India. Coke has further expanded its distribution network.

 Coke and its product were available in over 2, 50,000 outlets (in contrast with Pepsis
2,00,000). Coke has a greater advantage in terms of geographical coverage. But Coke has
had problems with its bottlers as the required profits for the bottlers have not been
forthcoming. This is more so because Coke has hiked the price of its concentrate by Rs. 8
Further, Cokes operations in India are 100% Fobs. Now, it plans to convert then into
COBOs. This is straining the relationship between the Coke and its bottlers. The
company had decided to create a fund to reimburse performing bottlers for the extra costs
incurred on account of the hike in prices of soft drink concentrates. Mr. Short also
realized that India is a price sensitive market and the company would have to absorb in
the increase in excise duty and said that in the long run Coke will have to slash prices for
the benefit of the consumers and said that they were considering a cut in the prices of
their fountain soft drinks. Coke and Pepsi have devised strategies to get rid of middlemen
in the distribution network. However, 50% of the industry unfortunately depends on these
middlemen. As of now, around 100 agents are present in Bananas. Bottlers of the
2multinationals have strongly felt the need to remove these middlemen from the
distribution system, but very little success has been achieved in doing so .D)
PROMOTION It must be remembered that soft drinks purchases are an "impulse buy low
involvement products" which makes promotion and advertising an important marketing
tool. The 2 arch rivals have spent a lot on advertising and on promotional activities.

 To promote a brand and even to spend a lot on advertising, the company must be aware
of the perceived quality of the brand, its brand power (if at all there is) since consumers
make purchase decision based on their perceptions of value i.e., of quality relative to
price. According to Paul Stobart, Advertising encourages customers to recognize the
quality the company offers. Price promotions often produce short-term sales increases.
Coca Cola has entered new markets and also developing market economics (like India)
with much-needed jobs. Coke attributes its success to bottlers, the Coca Cola system
itself, i.e., its executive committees, employees, BOD, company presidents but above all
from the consumer. Cokes red color catches attention easily and also the Diet Coke which
it introduced was taking the Cake, as Pepsi has not come out with this in India. Ever since
Cokes entry in India in 1993, Coke made a com back (after quitting in 1977), in October
24 in Agra, the city was flooded by trucks, there wheelers, tricycle cards-all with huge

42
 red Coke-emblazoned umbrellas. Retailers were displaying their Coke bottles in
distinctive racks, also with specially-designed iceboxes to keep Coke bottles cold. This
was one big jolt to Pepsi. STRATEGIES ADOPTED BY COKE AND PEPSI.

 The Pepsi Process: Despite being a global brand, Pepsi has built its success on meeting
the Indian consumer’s needs, particularly in terms of making the brand synchronize with
localized events and traditions. Instead of harping on its global lineage, ergo, it tries to
plug into ethnic festivals, use the vernacular indifferent part of the country, and blend into
the local fabric. Pepsi is using both national campaigns-such as the Drink Pepsi, Get Stuff
scheme, which offers large discounts on other products to Pepsi-buyers as well as local.
The Coke Copy: Instead of creating a bond with the customers through small but high-
impact events, Coca-Cola chose to associate itself with national and international mega
events like the World Cup Cricket, 1996, and world cup football 1998. But now coke is
also entering into local actions. Coke is also trying to make their brand synchronize with
localized events traditions and festivals. Coca-Cola new tag line in this advertisement is
“Real shopping, real refresher”. In this way Coke is copy Pepsi. EMPOWERMENT The
Pepsi Process: Once of the strongest weapons in Pepsi’s armory is the flexibility it has
empowered its people with. Every manager and salesperson has the authority to take
whatever steps he, or she, feels will make consumers aware of the brand and increase its
consumption.

 The Coke Copy: Flexibility is the weapon that Coca-Cola, fettered as it is by the need for
approvals from Atlanta for almost everything. In the past, this has shown up in its
stubborn insistence on junking the franchisee network it had acquired from Parle; in its
dependence on its own feedback mechanism over that of its bottlers;’ and on its
headquarters-led approach. PRICE The Pepsi process: Pepsi has consistently wielded its
pricing strategy as in invitation to sample, aiming to turn trial into addiction. It launched
the 500 ml bottle in 1994 at Rs. 8 versus Thumps Up’s Rs. 9, in April, 1996,its 1.5 liters
bottle followed Coke into the marketplace at Rs. 30 – Rs 5 less than Coke’s .But it
couldn’t continue the lower price positioning for long. The Coke Copy: Initially, coke
carbon-copied the strategy by introducing its 330mlcans in January 1996, at an invitation
price of Rs. 15 before raising it to Rs. 18. By this time, it had realized that the Coca-Cola
brand did not hold enough attraction for customers to fork out a premium. The 200ml
Coke, launched so far in parts of eastern, western, and northern India, is priced at Rs. 5,
lowering the entry-barriers. Too really drive the market, as Coke wants to you must go
down to Rs. 3’. PEPSI VS. COKE.

 $28 BILLION TURNOVER $16 BILLION32% INT. SALES AS % 70% ` OF TOTAL

SALESRS. 5OO CRORES TOTAL INVESTMENT RS. 250 C IN INDIARS. 300
CRORES PROPOSED RS. 2,400C INVESTMENTS2400 NO. OF EMPLOYEES 14013
NO. OF OWNED NIL BOTTLING PLANTS 55

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  FRANCHISES 534000 NO. OF FOUNTAIN 1500N.A. TOTAL INVESTMENT Rs 125
CR BY BOTTLERS6 NEW PLANTS PLANNED N.A. PEPSI AND COKE MARKET
SHARE IN INDIA.

COLA WARS Coca-cola v/s Pepsi OVER A CENTURY OF COLA SLOGANS,

COMMERCIALS, BLUNDERS, AND COUPS There little doubt that the most spirited and
intense competition in the beverage world is between Coca-Cola and Pepsi. These two American
companies long ago took their battle worldwide, and although there are other colas in the market,
these giants occupy this high-stakes arena by themselves. The impact of Coke and Pepsi on
popular culture is indisputable, and I have observed in my time managing this web site that
America has not become jaded about the cola wars. The memorabilia, the jingles, the trivia - all
still popular. So I am offering this page in an attempt to assuage a wee bit of the Coke and Pepsi
thirst that is thriving on our planet. IT ALL STARTED . . . .Coca-Cola was invented and first
marketed in 1886, followed by Pepsi in 1898. Coca-Cola was named after the coca leaves and
kola nuts John Pemberton used to make it, and Pepsi after the beneficial effects its creator, Caleb
Brad ham, claimed it had on dyspepsia. For many years, Coca-Cola had the cola market
cornered. Pepsi was a distant, nonthreatening contender. But as the market got more and more
lucrative, professional advertising became more and more important. These soda companies have
been leading the way in advertising ever since.

 PEPSI is targeting young generation and their ad campaigns are a clear example of that, whereas
coca-cola is targeting the family as a whole which has been its old formula from ages.• Presently
coca-cola may be leading in beverages like coke, but its facing severe competition from Mirinda,
Nimbooz and snack industry where PEPSI is ruling thanks to its KURKURE ad that has led to
great sales for PEPSI CO.• Though in packed drinking water KINLEY (COCA-COLA BRAND)
and ACQAFINA (PEPSI CO BRAND) both are treated equally by customers. Moreover
BISLERI still rules in this segment.

 FUTURE SCENERIO OF COCA COLA V/S PEPSI• The COLA WARS between coca-cola
and Pepsi would further grow and in my view its never ending• Both the companies would try to
become NO1 and there would AD WAR between the two which would prove to be beneficial for
actors/actresses as they would earn more through advertisements.• Pepsi have started
advertisements with female actresses DEEPIKA PADUKONE and COCA-COLA which had up
till know only endorsed male actors for the 1st time endorsed KALKI of DEVD fame with
IMRAN KHAN in its new ad.• With the coming up of COMMENWEALTH GAMES 2010 in
NEW DELHI , both the brands would try to attract customers towards itself with heavy
promotion and ad campaigns to build new customers and increase their share in market as well as
strengthen their brand value and earn profits.

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 WHICH BRAND WILL YOU PREFERENCE OF SOFT DRINKS IN A DAY? Once a day
Twice a day Once a week OtherQ.2. WHICH BRAND ARE YOU PREFERENCE TO THE
BRAND? Pepsi CokeQ.3. WHICH PARTICUALAR RATE TO GIVE THE PREFERENCES?
More Popular Packaging Taste PriceQ.4. ARE THE MARKETING STRATEGIES OF A
COMPANY AFFECT ITSSALES? Yes NoQ.5. WHICH FORM OF MARKETING
STRATEGIES IS MOST EFFECTIVE INTHE MARKET? Television Advertising Newspaper
Advertising Outdoor Advertising.

 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 major part of the decision. One thing that was common amongst all
the consumers who were once a day or once a week. The number one factors the influences a
customer while buying a soft-drink was taste. This was true for all the consumers who were
interviewed. The rest of the conclusions as deducted from the questionnaires are as follows: The
younger generation preferred soft drinks to the older generation. a. Children up to 15 years of age
liked to have soft drinks up to 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 [Link] reason given for choice of favorite’s 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
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 Delhi well as in India.99% of the consumers interviewed felt that the
marketing strategies of the Coca-Cola and Pepsi have helped them in attaining the huge market
share that they possess. Women and children prefer cans as compared to men. These are the
major conclusion that can be drawn about a consumers’ behavior. Companies must take the
initiative of finding out the habits of the consumers and then changing them, in their favor.

45
 ANALYSIS OF QUESTANNAIRE• 50 respondents were chosen among different age groups
for conducting the survey• FINDINGS: 1. YOUNGSETRS prefer PEPSI COLA over COKE 2.
Older age group prefer Mirinda lemon and limca over coke and Pepsi cola 3. ADS play a major
role in choosing of brand 4. Celebrities have a great effect on people consuming cold drinks 5.
People prefer Nimbooz (Pepsi co)over Pepsi cola and coke. 6. In terms of innovative and
exciting offers Pepsi co leads coca-cola. 7. When the question of more effective advertisements
was asked mixed reactions came with 50-50 response for both Coke and Pepsi. 8. Price plays an
effective role for choosing of product among INDIAN CONSUMERS. 9. TASTE came out to be
most important for the consumers in preferring for a particular brand. 10. TELEVISION came
out to be most effective for ad campaigns as respondents of all age groups watch TV.

 Soft drinks are an impulse product. When a person is thirsty, he would first think of water or tea.
Some even would prefer ‘Nimbooz “The Indian population is the largest in the world today,
there can be no other country in the world, which provides so much of an opportunity for the
soft-drink manufacturers. The Indian soft drink market is at 140 million cases per year, this is
very low. Thus the consumption of soft drink can go up.Sinc118+e the entry of Coca-Cola into
the country the industry is growing at a rate of20% annually. If this rate is maintained, then by
the year 2005 the market of soft drink would be 1 billion cases annually. However Coca-Cola
wants to accomplish this feat by them. To do this the industry has to take certain steps. All the
companies are fighting to get a major share of this growing market. They should all try to
increase the total market along with their individual shares. On the basis of all the field work and
table work done, some suggestions can be made, which may help the company in increasing the
total market as well as the sale of the companies. The various suggestions that can be made are
as follows:- Soft drinks retail at prices between Rs. 6 and Rs. 10. These are expensive when
measured against purchasing power .According to one study, it takes Indian 50 minutes of work
to be able to buy a bottle in other countries, the norm is five minutes. Thus to increase the total
market of soft drinks , manufactures should try and decrease the prices, so as to increase sales.
Availability is a major factor, which makes the consumer buy a soft drink. Soft drinks should be
made available more readily than present. 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.

 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 hav constantly come out with innovative [Link]-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

46
 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 behavior, it could tell them how to sell their drinks, so as to increase sales. It is
seen In India, that people prefer having their drinks with or after food. Companies could have
commercials which show people enjoying their drink with a good meal, so that consumers
associate drinking soft drinks while having food. Companies should try to educate the consumer
about the health related subject. For e.g.:-a) Limca is recommended to patients by doctors. b)
Cola drinks are known to be very fattening ,But in fact cola drinks contain no calories from fat
they contain calories from sugar which can be easily burned off. The soft drink cans and plastic
bottles should mention the calories and other related information on the packing. Companies
should try to build high brand equity. This provides a number of advantages to the company. a)
The company enjoys reduced marketing costs because of high level of consumer brand
awareness and loyalty.

 The company will have more trade leverage in bargaining with distributors and retailers since the
customer expects them to carry the brand. c) The company can change a higher price than its
competitors because the brand has higher perceived quality. d) The company can more easily
launch brand extension. e) Above all, the brand offers the company some defense against fierce
price competition. The companies should go in for diversification Once the brand is known, it is
easier to sell more of its products. For e.g. Coca-Cola clothes have sold about $100 million worth
of clothes and accessories. This would increase revenues of the company. The companies should
not have competitor myopia. It is more often the latent company than the current competitor who
busies the company. Pepsi and Coca-Cola are so busy fighting with each other, that they have
left the non-cola sector open for Cadbury-Schweppes. Advertising is a way building brand
image. It does not promote quick selling. Thus companies should used advertising only for long
advertising can be used for: a) Brand image building b) Reminder advertising: reminding people
to buy these drinks. c) Reinforcement advertising-Telling people that they have made the right
choice. Television advertising seems to make a impact on the consumers (based on questionnaire
answers) so companies should concentrate more on television advertisements. Sales promotion
tools create a stronger and quicker response. Thus sales promotion tools such as coupons,
contests, premiums and the like should be used to dramatize product offers and to boost sales.
Sales-promotion effects are usually short run and induce the people to purchase soft drinks, now.

Coca-Cola and Pepsi have taken up sponsoring of events on a major scale. All kinds or events,
whether big (Wills Worked cup) or small (college contests) have either Pepsi or Coke banners of
sponsorship. The effectiveness of this can be questioned. Whether these activities increase sales
or not is a big huge question mark. 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. It is recommended that company should introduce more and more
customer oriented schemes and contexts. For e.g. Pepsi’s new campaign “Pepsi cool mal” in

47
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.
It is also recommended that companies should launch soft drink in small pack 200 ml and150 ml.
Thus we see that there various steps which can be taken by the companies to increase their sales
and to increase the total market share.

Monster and big soda: a natural fit

Consumers crave new and bold flavors -- and Monster delivers this. The company has a long
runway for growth, but that growth could come even faster. Two things are almost always true of
fast-growing products: 1.) it is popular with consumers; and 2.) it is widely marketed and
distributed. The greater extent that either of these factors is true, the faster a product will grow.
There is not much more Monster can do to increase its popularity with consumers than it is
already doing, but Coca-Cola and PepsiCo can help it grow distribution much faster than
Monster can on its own. Coca-Cola already distributes close to 30% of Monster's dollar volume,
but Monster would benefit from utilizing Coca-Cola's entire global network of bottlers and
distributors. A close partnership with Coca-Cola could get Monster into more convenience stores
and other retailers in the U.S. and abroad. Even PepsiCo, which, like Coca-Cola, has its own line
of energy drinks, would benefit by distributing Monster's energy drinks worldwide. PepsiCo
owns AMP Energy -- a distant fifth in energy-drink market share. Although PepsiCo's Mountain
Dew Kickstart energy drink/breakfast shake hybrid is gaining traction, it still represents less than
$100 million in sales -- a tiny fraction of PepsiCo's $66 billion in overall revenue. Monster's $2.2
billion in sales is also small compared to PepsiCo's overall sales, but its enormous growth
potential given a worldwide distribution network makes Monster an attractive partner. Perhaps
the best justification for either Coca-Cola or PepsiCo to become an exclusive partner with -- or
the parent company of -- Monster is that the soft-drink business is in such bad shape. According
to Nielsen data, soft-drink volume increased only 0.5% in the convenience-store channel during
2013. A significant part of soft drinks' struggle derives from the proliferation of alternative
beverages led by energy drinks. As a result, it would be mutually beneficial for Coca-Cola or
PepsiCo to initiate a deeper relationship with Monster in the coming years.

SWOT ANALYSIS
STRENGTH
The customer faith in Pepsi beverages results in creating a great demand for Pepsi in spite of its
weaknesses.

48
WEAKNESS
Improper supply of brand i.e. Pepsi
Low availability of chiller.
Timely supplies are not given to retailers.
OPPORTUNITIES
1. LBPL makes the process more convenient and efficient (it provides the Pepsi product at
required places i.e. direct to distributors and to retailers through distribution).
2. The executive of company have more interaction with retailers to meet the need for
getting more information and advice for distributors/retailers/customers.
3. Replace market damages at regular intervals.
THREATS
1. Coca-cola is putting up more chilling equipments to boost up the sale at all channels of
retails.

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 OBJECTIVE

OBJECTIVE OF THE TOPIC

To analyze, interpret and study the entire beverage market of Noida

 Comparative study of the various brands, packs and flavors available in the market.

 Analysis of the strong and weak point of the competitors products and compare it with
PEPSI.
 To assess the reach and feasibility of the product and give the output for further
investment for enhancing the distribution network along with assessing the efficiency of
the current distribution system.

50
  Assess the promotional measures in the context to the sales of PEPSI and focusing our
study on the customer of company i.e., the retailers.

As obvious that any company is concern with the increase in sales of its products, our project
was in line with the companies’ objectives and all steps incorporate in the project were directed
to give an overview so as to attain its objectives The market research conducted by us was in
accordance to the company’s rules and policies which were quite material for the efficient and
effective results and inferences to be drawn from the entire process. The market research was
conducted in compliance of the given guidelines delivered to us expressly to achieve the given
objectives, which were as under:

1. Profitability
2. Improvement
3. Sales

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 SCOPE OF THE STUDY

Scope of the study

The market survey for comparative study between 7up (pepsi) and sprite (coca cola) is doing in
Belgoum [Link] scope of the study (survey) areas selected Belgoum city are
[Link],Deshmukh road,Camparea,kirloskar road,collage road,Nehru nagar,Bustand
area,Shivbasava nagar. Dealrs they will divide these areas depending upon their
[Link] is a world leader in convenient foods and [Link] 2005 revenues of
more then $billion and 153,000 employees ,the company consist of frito-lay north
America,pepsico brands are available in nerely 200 countries and territories and generate sales at
retail labour of about $78 billon.

52
53
 IMPORTNCE OF THE STUDY

IMPORTANCE AND RELEVANCE OF THE STUDY

Cold drinks were started with the idea of quenching the thirst of the persons traveling. It was also
felt that reliable good water was not available everywhere. So people would really on their
packed bottle and with this idea its makers made these drinks available mostly, at those places
where water was not available i.e. on highways and long distance trains. But slowly and slowly
with its beautiful taste these become very popular and now they are available not only in the
market and street corners, but also people have started keeping it in their house. The credit of
popularizing the soft drink goes to Coca Cola. This was the drink which is liked by all ladies,
gents and children. Now day’s soft drinks are quenching thirst looks more often; they are taken
due to habits. Gold Sport is considered as the first branded soft drinks, established 53 years ago
54
before all empowering Coca Cola faced competitions and its euphoric image built up in the
western countries helped it get ready clientele and clamor. Parle Export Pvt. Ltd. is regarded as
the first Indian Company introducing Limca a leman drink complementary to it this has also
introduced Cola Pepone which was withdrawn in the face of tough competition from Coca Cola.

When Coca Cola bid a Farwell in 1977, Indian market was open for various new forward
publishing different brands in the markets. Parle people introduced their Cola, Thumps Up with a
mighty saying “Happy days are here again” as if happy days went away with Coca Cola. Pure
drinks of Delhi also without lasing much introduced pure drinks were producing and marketing
Coca Cola earlier Campa Cola with Campa orange and Campa lemon. Modern Bakeries entered
the market with Double Cola Seven, Mohan Makings with Merry &Plkup and McDowell with
Thrill, Rush and Sprint. This is Indian market where there was no competition and high voltage
advertising was on each one was trying their best to become number one company with ‘A’ class
product in the field of Soft Drink business. Now after a long gap government of India had given
permission to Coca Cola, which joined with Parle to do business in India. They are trying their
best to regain prestige which it had before. The much rival of Parle is Pepsi an American
concern. It started business on the Indian soil just a few years ago. Today, it has occupied 62%
shares of Soft Drinks market in India. Now Pepsi is going all out to prove that they are the best.
But now due to some factors competition among them has become stiffen. So in this way the
important activities have increased.

Performance with purpose

At PepsiCo, Performance with Purpose means delivering sustainable growth by investing in a
healthier future for people and our planet. We bring that Purpose to every aspect of our business.
At PepsiCo, Performance with Purpose means delivering sustainable growth by investing in a
healthier future for people and our planet. As a global food and beverage company with brands
that stand for quality and are respected household names—Quaker Oats, Tropicana, Gatorade,
Lay's and Pepsi-Cola, to name a few—we will continue to build a portfolio of enjoyable and
wholesome foods and beverages, find innovative ways to reduce the use of energy, water and
packaging, and provide a great workplace for our associates. Additionally, we will respect,
support and invest in the local communities where we operate, by hiring local people, creating
products designed for local tastes and partnering with local farmers, governments and
community groups. Because a healthier future for all people and our planet means a more
successful future for PepsiCo. This is our promise.
Our Performance with Purpose agenda is comprised of three platforms:
1. Encourage people to live healthier by offering a portfolio of both enjoyable and
wholesome foods and beverages.
2. Protect the Earth's natural resources through innovation and more efficient use of land,
energy, water and packaging in our operations. 

55
3. Invest in our associates to help them succeed and develop the skills needed to drive the
company's growth, while creating employment opportunities in the communities we serve.
The people behind PepsiCo's brands are working hard to address these sustainability
challenges, while partnering with key stakeholders to effect real change. While we have
taken significant strides on this journey, there is still more to learn and do. It is our intent
to lead the way.

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Commitment
We are committed to delivering sustained growth through empowered people acting responsibly
and building trust.

What It Means ----Sustained Growth is fundamental to motivating and measuring our success.
Our quest for sustained growth stimulates innovation, places a value on results, and helps us
understand whether today's actions will contribute to our future. It is about the growth of people
and company performance. It prioritizes both making a difference and getting things done.
Empowered People means we have the freedom to act and think in ways that we feel will get
the job done, while adhering to processes that ensure proper governance and being mindful of
company needs beyond our own.
Responsibility and Trust form the foundation for healthy growth. We hold ourselves both
personally and corporately accountable for everything we do. We must earn the confidence
others lace in us as individuals and as a company. By acting as good stewards of the resources
entrusted to us, we strengthen that trust by walking the talk and following through on our
commitment to succeeding together.

57
RESEARCH METHODLOGY

58
 Research Methodology

All the findings and conclusion obtained on the survey done in the working area. With the limit,
I tried my best to select the sample representative of the whole group. During my job training I
maintained different routes during my dealer survey. I have collected data from the Depot of
Noida under the organization itself.

Data-sources:
Retailers/Dealers (Cold drinks stalls,Ice stalls,Hotels, Restaurants,Sweet shop,Pan shop,General
Stores,Telephone Booths etc.) Depot internal company’s records etc.

Research-approach:

~Survey

Research-instrument:
~Interview Schedule

Sampling-plan:
Sampling unit Distributor Retailer

Sampling size 02 25

Sampling procedure:
~ Census survey

~ Contact method

~ Personal interview

Primary Data collection:

59
All the dealers/retailers were personally visited and interviewed. There was a format for
collecting the details of the dealers. The format was filled by taking the information from the
dealer by monitoring the shops.

DEALER-SURVEY:
Dealer-survey, as the word indicates, is the survey of every dealer of soft drinks in the area. For
our practical purpose, the dealer not only includes the authorized dealers, but it also includes all
the retailers-big or small grocery shops, stationary, restaurants, beetles shop etc., besides these,
the various exclusive stalls and sales of pantry cars are also included in it. In a nutshell, by dealer
survey, I mean who is dealing with the soft drink in someway or the other in large or small
quantity directly or indirectly.

Thus,my study includes all such dealers,which includes following aspects:

 [Link] routes covered by depot

 Crate strength
 Per day sale
 Chilling ad
 Nature of outlet

Schemes of Pay-off
I had to visit each and every outlet and personally interview them. In order to know the market
share of Pepsi and its competitors. I have conducted a survey in Noida and its surrounding area.
By the help of survey, I can find out the reason behind non-availability of Pepsi in the specified
area. The knowledge of case-stock indicates our “case-in-trade” and that of competitors. This
will indicate our “case-velocity” which will help to plan our bottle as whether our distribution is
effective or not. If my case-stock is low then may decide for a “case stocking campaign”.
Feedback from marketing place regarding servicing of dealers will help us to improve our
service in the lacked areas. Therefore, appropriate marketing strategy can be worked out
depending upon the findings. Some more uses of dealer-survey,

Depot-effectiveness

The survey can improve the distribution network in these ways:

 Immediate activation of non-buyers
 Improve the dealer coverage
 Increase the realignment of routes
 Better control through route card
 They should visit the counter on the daily basis including the remote places.
 Salesman should visit the counter on likely basis.

60
MARKET KNOWLEDGE

Dealer-survey gives the total profit of the market by following:

 Location of dealers
 The type of dealer
 No. of dealers who keep Pepsi, Coca-Cola and comparing the stock.

The marketing inputs with respect to

 Advertising
 VISI Cooler
 Servicing

Training group for future executives:

Good investigators from these surveys can be recruited to take up future jobs. These people will
be ideally suitable, as they would know the market thoroughly.

61
 ANALYSIS
AND
INTERPRETATION

Analysis 0f Data

62
STUDY OF PRODUCTS &THEIR PRICING STRATEGY
Product line is a group of product,that are closely related because they satisfy a class of needs or
used together or sole to the same customer groups or marked thourgh the same type of outlets or
fall within given price range.V.B.P.L. hasthe following product line:

Name Colour Flavor

Pepsi Brunti Cola
Mirinda Sunset Orange
Mirinda Tetrazine Lemon
Slice Sunset Mango
7 Up Colourless Lime
Dew Colourless Lime

Lehar Soda Tetrazine Lemon

FLAVOR SIZE PCS [Link] PER PCS RATE

Pepsi Cola 200 ml 24 250 12

Pepsi Cola 300 ml 24 320 15

Pepsi Cola 600 ml 24 780 35

Pepsi Cola 2000 ml 9 620 80

Mirinda
Orange 200 ml 24 250 12

Mirinda
Orange 300 ml 24 320 15
Mirinda
Orange 600 ml 24 780 35
Mirinda
Orange 2000 ml 9 620 80

Mirinda 200 ml 24 250 12

63
 Lemon
Mirinda
Lemon 600 ml 24 320 35

7 Up 200 ml 24 780 12

7 Up 300 ml 24 320 15

7 Up 600 ml 24 780 35

7 Up 2000 ml 9 620 80

Mountain Dew 200 ml 24 250 12

Mountain Dew 600 ml 24 780 35

Mountain Dew 2000 ml 9 620 80

Slice 250 ml 24 320 15

Slice 500 ml 24 780 35

Slice 1200 ml 12 600 55

My Can 250 ml 24 450 20

Pepsi Diet 330 ml 24 780 35

Slice
Tetrapack 200 ml 30 330 12

Leher Soda 300 ml 24 210 10

Leher Soda 600 ml 24 450 20

INTERPRETATION OF OUTLETS

64
 Types of Outlets No of Outlets

Convenience 39

On the premise 13

Grocery 44

No of Outlets

39
44 Convenience
On the premise
Grocery

13

Interpretation: Many types of retailers in the market to sell the pepsi& Coke product. I have
taken that list from company and classified that shops according to company guidelines. General
and kirana stores (Groceries) are major thing for company because their share is 45%. So
company always try to make good relationship with them because they give more sell to other
outlets.

65
MARKET SHARE:
Over all market share of cold drinks companies in Noida

SL. No Company Name Total(%)

1 PCI 28
2 CCX 40
3 Parle agro 10
4 Amul 8
5 Other local Player's 14
  Total (%) 100

Total(%)
40
40
35
28
30
25 Total(%)
20 14
15 10
8
10
5
0
PCI CCX Parle agro Amul Other local
Player's

Interpretation: PCI Market share is little bit short in comparing to coke for enlarging more
market share PCI will have to Invest more in the market and its advertisement.

Over all market share of PCI and CCX in Noida:

66
 SL. No Flavors PCI CCX Total (%)
1 Cola 10 15 25
2 Clear Lime 13 17 30
3 Cloudy Lime 1 4 5
4 Orange 11 9 20
5 Mango 8 12 20
  Total (%) 44 56 100

18 17

16 15

14 13
12
12 11
10
10 9
8 PCI
8 CCX

6
4
4

2 1

0
Cola Clear Lime Cloudy Lime Orange Mango

Intepretation:-On the basis of my collected data in Noida cold drink market I have reached
this stage that I can show overall market share of all cold drink flavor.

MARKET SHARE OF DIFFERENT SOFT DRINKS:

67
 Product % Share
Pepsi-Cola 42

Coca-Cola 13

Thumps Up 45

Total 100

% Share

42; 42%
45; 45%
Pepsi-Cola
Coca-Cola
Thumps Up

13; 13%

Interpretation: There is dominancy of Thumps Up in the Cola segment of Soft Drink in the
Market. Pepsi is competitor of Thumps Up.

The Orange Flavored soft drinks:

68
 Product % Share

Mirinda 52

Fanta 38

Other 10

% Share

60
52

50
38
40
% Share

30

20
10
10

0
Mirinda Fanta Other

Interpretation: The graph shows that there is a majority of customers of Mirinda Orange
Flavor in the market. It dominates the market over Coca-Cola’s product Fanta.

Clear Lime Market Share:

69
 Product % Share

7 Up 45

Sprite 55

% Share

45%
7 Up
Sprite
55%

Interpretation: There is great dominancy of Sprite in the market. Customers always demand
they take 7 Up only as a substitute of that.

Mango Flavour Market Share:

70
 Product % Share
Slice 30
MaaZa 40
Frooti 30
Total 100

% Share
40
40
35 30 30
30
25 % Share

20
15
10
5
0
Slice MaaZa Frooti

Interpretation: The graph shows that there is majority of customer of Maze (Mango)
flavored in the market. It dominates the market over Pepsi’s product Slice.

Market Share of Juice:

71
 Product % Share
Dabur Real 45
Tropicana 30
Godrej 10
Other 15
Total 100

% Share

15%

10%
45% Dabur Real
Tropicana
Godrej
other

30%

Interpretation: The graph shows that there is majority of customers of Dabur Real Juice in
the market. It dominates market over Pepsi’s product Tropicana.

PERCENTAGE SHARE OF CHILLING OF EQUIPMENTS:

Percentage share of VISI Coolers:

72
 Company No %
PCI 2200 32
CCX 3800 55
Own 900 13
Total 6900 100

16
16

14 13

12

10 9
10

8
No. of Distributors
6 Satisfied
6 4

0
PCI Satisfied
CCX No. of Distributors
Total

Interpretation: From the above graph it is clear that Coca-Cola VISI Cooler is much more
than that of Pepsi.

PERCENTAGE OF GLOW- SIGN BOARD:

73
 Company No %

PCI 50 17

CCX 250 83

Total 300 100

Number of Sign-Board of Company

PCI
CCX

10

Interpretation: From the above chart it is clear that 17% of glow Sign-Board is of Pepsi
while 83% is that of Coca-Cola.

PERCENTAGE SHARE OF SATISFIED DISTRIBUTORS:

Company No. of Distributors Satisfied %

74
 PCI 6 4 31

CCX 10 9 69

Total 16 13 100

10

10 9

9
8
7 6

6
4 No. of Distributors
5 Satisfied
4
3
2
1
0
PCI CCX

Interpretation: During my training and research I have found Pepsi distributors are not
satisfied like Coke distributors. During my two months training two distributors had quit to
company due to some misunderstanding.

75
 COMPARATI VE SALE IN ‘200ML”

COCACOLA
44%

PEPSI
56%

COMPARATIVE SALE IN 300ML

76
 PEPSI
47%

COCACOLA
53%

77
 COMPARATI VE SALESS IN “500ML”

59%
60%

50%
PERCENTAGE IN

41%
40%
MARKET

30%

20%

10%

0%
PEPSI COCACOLA
COMPANIES

78
 COMPARATIVE SALES IN “ 2LTR”

70%

60%
SHARE IN MARKET

64%
50%

40% 36%

30%

20%

10%

0%

PEPSI COCACOLA
COMPANIES

79
 COMPARATIVE SALES IN “CAN”

67%

70%

MARKET SHARE IN CAN

60%

50% 33%
40%

30%

20%

10%

0%
PEPSI COCACOLA

COMPANIES

80
 EXTRA EFFORTS MADE BY RETAILERS TO SELL PEPSI

38%

Yes No

62%

According to the survey conducted I found that the retailers do not make
some extra efforts to sell PEPSI. The company should makes such promotion
activities and motivate the retailers by any means so that they should make
some extra efforts to increase the sales of Mountain Dew.

81
RECOMMANDATION AND
LIMITATION

82
 RECOMMENDATIONS
Varun Beverages Pvt. Ltd. should introduce some change in its marketing function and
advertising to market more rational. The following factors to be worthy of consideration:-

 A complain Register should be provided by the company to every distributor in every

route so that, retailers/customers can write their problems. The complain register should
be checked by consumer executive and depot in charge at time to time.
 A clear notification should be given to teach distributor and each route agent to give cash
memo (with printed number) and maintain route card for every transaction.
 Proper care should be given the company’s employees at the time of scheme close.
Signature of scheme receiving on the cash memo should be taken and it should be also
maintained in route card. Claim of scheme should be passed after the deeply study of
above three points i.e. difference between opening stock and closing, signature of scheme
receiving on the cash memo and sells maintained in the route card.
 Some retailers keep other companies products in the Pepsi’s fridge, while is provided by
the company. To check additional scheme be given in every month, in the peak seasons
After the checking of Pepsi’s Fridge (3or 4 times in every month ) if It is found that
retailer does not keep other companies products in the Pepsi’s Pepsi fridge the claim of
scheme should be passed . Thus we can improve/increase its sell and employee’s
activities.
 The numbers of outlets are too much. So it is required to short the route and extra
vehicles/tricycles provide in this route.
 Facilities provided by the company should be increased. Facilities requirements should
be fulfilled in all the rural and urban area properly after deeply study for various aspects
or retailers by the help of company employee and depot incharge.

 All these tricycles targeted the tired and thirsty consumer or the road and other place,
care should be taken that soft drinks in the ice box are always chilled and ice readily
available.
 The vendors can also be provided with uniform by the company in order to give them
visibility.
 An appropriate name should be given to these tricycles and properly advertisement thus
giving them some sort of identity.
 Now a day with the introduction of tetra packs such as fruity, Tree Top etc. So Varun
Beverages Pvt. Ltd. should think of introducing such packs of its various brands of
beverages.

83
  Coke is the only competitor of Pepsi. So we should try to keep every information about
Coke i.e. prices scheme, policy etc. always it will help in Decision making.
 The company should promote its product through suitable benefits.
 The company must respond quickly and constructively to the complaints to the retailers,
distributors as well as customers.
 The company should provide its retailers the billboards for advertisement/ sales
promotion.
 The company should take certain measures to improve its distribution channel in the
rural areas and various other places of Noida.
At last only this can be said that these suggestions are most important to used by the Varun
Beverages Pvt. Ltd. it would be pleasure for me and is certain that if these are carried out by
management , it will helpful in establishing the Varun Beverages Pvt. Ltd. on a more stronger
footing.

84
 LIMITATION OF RESEARCH
As I was asked to carry on my vocational training I found the following limitations during my
training period. So I could not collect all information regarding my topic.

1) It was not possible to understand thoroughly about the different marketing aspects of
soft drinks in a span of two months.
2) The survey was conduced in the peak season when the sale was too high by this I
cannot get the appropriate result.
3) Money –as no stipend was given, it was difficult to cover a wide area.
4) All the work was limited in Noida area, so the finding should not be generalized .the
finding of survey will be strictly based on the response of consumer, retailer/dealers
since it is difficult to ascertain the authenticity of their statement.
5) Shortage of time factor was one of the biggest constraints.
6) Most stress was given on the primary data as it was difficult to collect secondary data
from the organization and distribution since it is difficult to ascertain the authenticity
of their statements.
7) All the observation and recommendation will be made on the feed back obtained from
survey.

85
CONCLUSION AND FINDING

86
 CONCLUSION
1. The whole analysis show that there are only two companies dominating in the soft drink’s
market Pepsi and coca-cola.
2. Coca-cola has invested more in the market. Distribution of VISI coolers and display of
glow sign board but after that Pepsi give him very tuff competition.
3. Most of the dealers want glow signboard and chilling equipments, which they are asking
for long time.
4. In the cola segment thumbs-up and lime segment sprit is the main competitors of Pepsi.
But mountain dew lonely defeats them.
5. Due to high demand, there is crisis in the market.
6. Pepsi is more sweet and low fizz. Soft drinks that everybody knows and it is not like by
customer, to catch the customers.
7. Pepsi should provide more supporting goods which is helpful to enhance the market
share of the Pepsi.
8. Try to always satisfy the dialers which may be a big factor to enhance the market share.
9. Should be a proper supply of Pepsi product in the market.
10. Should be proper interaction between dealers and company employee.
11. Pepsi has the entire flavor i.e. Cola, Leman, Orange, Mango in the market and its market
share is comparatively more than Coke.
12. The majority of the retailers deal in all brands of Pepsi and Coca-Cola.
13. One of the major drawbacks of Pepsi products is that all the flavors do not reach at each
and every retail outlets but competitors products do reach that is why competitor enters in
to Pepsi exclusive outlets .
14. It should be checked that whether our products is reaching to the outlets timely and
regularly or not.
15. There is irregular in the supply of Visi-cooler, some retailers, which sell more are not
provided Visi-cooler which some retailers, which sell less, are provided Visi-cooler.
16. Most of the retailers are in need of board but not provided by the Pepsi Company.

87
17. Most of the retailer’s especially small retailers have complained that the sales man does
not inform about any sales promotional scheme.
18. The big retailers of Pepsi do not maintain the purity in the Visi-cooler and dictate their
own terms and conditions.

88
 Findings & analysis
The Indian soft drinks market is at 140 million cases per year. This is very low, even as
compared to Pakistan and Bangladesh. All these factors together have contributed to a 20%
growth in the soft drinks industry.. If this demand continues to grow at 20% 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 market. The rest of the 3% is
shared by companies like Cadbury-Schweppes and Campa-Cola. The total no. of case sold are
140 million of these 77 million cases of Cola drinks are sold and 63 million of non-cola drinks.
There is a rapid increase in the sale of cola soft drinks. Whereas in 1990, they accounted for a
third of all soft drinks sold, now their share is well over half. Also cola sales are growing at a
faster rate than non-colas. One of the reasons for this could be the aggressive marketing
strategies for Cola drinks by Pepsi and Coca-Cola.
The race to quench the great Indian thirst had deign.

89
BIBLIOGRAPHY

90
 BIBLIOGRAPHY

BOOKS:
MARKETING MANAGEMENT
~ PHILIP KOTLER.
RESEARCH METHODOLOGY
~ C.R. KOTHARI.
WEBSITES:
 [Link]
 [Link]
 [Link]
 [Link]

91
 ANNEXURE

QUESTIONNAIRE

92
 QUESTIONNAIRE FOR RETAILERS
Name of the shop/outlet : ..................................................................

Address/Location : .......................................................................

Type of outlet : ..............................................................

(a) General Store (b) Pan Shop

(c) Sweet Shop (d) Lassi /Juice Shop

(e) Dhaba /Canteen (f) Others

l .Q. In which month Peak Season of Soft Drinks?

(a) Jan-Feb (b) March-June

(c) July-Sept (d) Oct- Dec

2. Q. Is advertisement effect on sales?

(a) Yes (b)No

3. Q. Are you satisfied with behavior of staff visit?

(a) Excellent (b) Good

(c) Satisfactory (d) Poor (e) Very poor

4. Q Do you receive the delivery of PepsiCo products in time?

(a) Yes (b) No

5. Q what is percentage age share of satisfaction of distribution of PepsiCo and

coke?

(a) PepsiCo (b) coca cola

6.Q. What is percentage share of chilling equipment’s?

(a) Pepsi (b) Coca-Cola

(c) Own

93
7. Q Which company’s signage you have in your outlet?

(a) Pepsi (b) Coca-Cola

8. Q Which types of product available always?

(a) PepsiCo (b) Coke (c)Both

9. Q Which types of product is more demanded by the consumer ?

(a) Pepsi

(b) Coca-Cola

(c) Both

10.Q. How many crates of Pepsi & Coca-Cola you sell/day ?

(a) 0-1 crates (b) 1-2 crates

(c) 2-3 crates (d) 3 & above

Kind of shop:
 Confectionary
 Eatery
 Grocery  Others
Which brand you purchase:

 BOTH
 PEPSI
 COCA-COLA
Which flavour you purchase more:

 COLA  Orange
 Lime & Lemon
 Mango

Which volume of pack preferred by customers:

 500ml
94
 2Ltr.
  200ml
 300ml

Age group of your customers:

 Below 15 yrs  25-35 yrs

 15-25 yrs
 35 yrs & Above

Customer’s preference depends upon:

 Availability
 Brand
 Advertisement  Scheme

If customer’s preference depends upon schemes, than which age group is mainly affected
by it:

 Below15yrs
 25-35
 15 – 25 yrs
 35 & Above
Average monthly consumption of PEPSI & COCA-COLA:

 PEPSI ……………
 COCA-COLA …………….

Do you make some extra efforts to sell/promote the PEPSI:

 Yes
 No
If yes, then what type:

…………………………………………………………………………………………..

…………………………………………………………………………………………..

………………………………………………………………………..
………………………………………………………………………………………..

95