Project Report On Comparitive Study On Pepsi and Coca Cola

Project Report On Pepsi V/S Coca-cola...
A COMPARATIVE STUDY
ON PEPSICO AND
COCACOLA
PROJECT REPORT ON:
A COMPARATIVE STUDY ON PEPSI AND COCA-COLA

MASTER OF COMMERCE (PART 1)
SEMISTER I
(2015-2016)
SUBMITTED TO:
UNIVERSITY OF MUMBAI
FOR THE POST DEGREE IN M.COM
SUBMITTED BY
MR.PRIYESH C. YELAVE
ROLL NO.38
M.COM (PART 1)
UNDER THE GUIDANCE OF:
PROF. PRAKASH MULCHANDANI
SMT. CHANDIBAI HIMATHMAL MANSUKHANI COLLEGE

ULHASNAGAR-421003
Department of Commerce
Certificate
Thisistocertifythat,MR.PRIYESHYELAVEofM.Com.I,Sem.I(RollNo.
38), has successfullycompletedtheprojecttitledACOMPARATIVE STUDY
OF PEPSICO AND COCA-COLAundermyguidancefortheAcademicYear
201516.Theinformationsubmittedistrueandoriginalaspermyknowledge.
Prof.PrakashN.Mulchandani
(ProjectGuide)
Prof.GopiShamnani Dr.PadmaV.Deshmukh
(Coordinator,M.ComCourse)
(I/CPrincipal)
ExternalExaminer
DECLARATION

I, MR. PRIYESH YELAVE Student of Smt. Chandibai Himathmal Mansukhani College,
centre for Business Management course of M.COM (Semister I) hereby declare that I have
completed the project in academic year of 2015-2016 on
A COMPARATIVE STUDY ON CONSUMER PERCEPTION

TOWARDS PEPSI AND COCA-COLA
The information provided is true and original to the best of my knowledge.
PRIYESH YELAVE
(M.COM ROLL
NO.38)
ACKNOWLEDGEMENT
Many have contributed to the successful completion of this project, I would like to place on
record my grateful thanks to each of them, and report would be incomplete without giving due
credit to them.
I feel extremely exhilarated to have completed this project under the able and inspiring
guidance of PROF. PRAKASH MULCHANDANI. His guidance and timely encouragement
has infused courage in me to complete the work successfully.

In the end I sincerely thank all the respondent, friends and all others who helped me in
completion of this project.
EXECUTIVE SUMMARY
Market provides a key to gain actual success only to those brands which match best to the
current environment i.e." imperative" which can be delivered what are the people needs and they
are ready to buy at the right time without any delay. It is perfectly true but this also depends on
availability of good quality products and excellent taste and services which further attract and
add a golden opportunity for huge sales.
This also depends on the good planning approach and provide ample opportunity plus sufficient
amount of products for sales in the coming next financial year.

This survey report introduces comparative study of consumers preferences for COCA-COLA
and PEPSI. After going through a detail analysis of market behavior and future prospect, it may
also provide an opportunity to COCA-COLA and PEPSI to frame a good future plan to satisfy
maximum needs of the customers and established its guiding role in the market of TRICITY in
particular and throughout the country as a whole. The study report will also provide an
opportunity to delineate its market potential business areas, products & services are to be offered
by the company to the customers.
This study report also provides the various factors affecting the services. Marketing Division of
COCA-COLA and PEPSI has to keep in mind various factors specially while preparing a plan
for marketing its product or services. Detail description along with analysis of surveyed data
is being presented in this report
INDEX
SR.NO.
1
1.1
2
PARTICULARS
PAGE NO.
INTRODUCTION
HISTORY OF PEPSI AND COCA-COLA
11
MISSION AND VISION
13

3
NEED FOR THE STUDY
16
OBJECTIVE OF THE STUDY
17
PEPSI AND COKE MARKETING STRATEGIES
18
5.1
CHANGING OF LOGOS AND SLOGANS DESIGN OF PEPSI

AND COCA-COLA
23
5.2
COMPARISON OF SLOGANS BETWEEN PEPSI AND COCACOLA
25
ADVERTISING STRATEGY OF PEPSI AND COCA-COLA
26
CONTROVERSY ON PRESENCE OF PESTICIDES
28
TOP BRANDS OF PEPSI AND COCA-COLA
29
MARKET ANALYSIS
32
CASE STUDIES
36
10
FINDING AND SUGGESIONS
42
11
CONCLUSION
46
12
BIBLIOGRAPHY
47
5.3
INTRODUCTION
India is the world's fastest growing major economy and has already made it to the list of 10
biggest economies of the world. According to the International Monetary Fund (IMF), India is
the ninth largest economy with a nominal GDP estimated at around US$ 2.04 trillion. With US$
7.96 trillion PPP in terms of the Purchasing Power Parity (PPP),

India is the third largest economy with US$ 7.96 trillion, and that is what makes it one of the
biggest markets in the world. India is a major manufacturer and importer of soft drink beverages.
The Indian soft drink industry is vast and is has been rapidly growing by the day. No matter what
time of the year it is, soft drink beverages are consumed in great volume.
According to official reports, the volume of soft drinks consumed in India stood at a whopping
11,755 million litres in 2013. These numbers suggest that there was an increase of about 170
percent in the consumption of soft drinks in comparison to 2008. It is further expected that the
sale of soft drinks may go up by an annual 19 percent till until 2018.
The beverage industry in India constitutes of around USD 230 million among the USD 65 billion
food processing industry. The major sectors in beverage industry in India are tea and coffee
which are not only sold heavily in the domestic market but are also exported to a range of
leading overseas markets. Half of the tea and coffee products are available in unpacked or loose
form. Among the hot beverages manufactured in India, tea is the most dominant beverage that is
ruling both the domestic and international market even today. The supply of tea and coffee is
insurmountable in the Indian beverage industry.
The taste factor in tea varies according to the taste of individuals in different countries and the
beverage companies in India manufacture the products in accordance with the taste of the
individuals. For example, the inhabitants in the southern parts of India prefer dust tea whereas
the inhabitants in the western part of India prefer loose tea. The Southern India also prefers
coffee a lot. The production capacity of the total packaged coffee market is 19,600 tonnes which
is approximately a USD 87 million market. The soft drink market such as carbonated beverages
and juices constitutes around USD 1 billion producing 284 million crates per year. In the peak
season, the consumption capacity reaches 25 million creates per month and during off season the
same goes down to 15 million crates in a month. Pepsi and Coca cola are the two leading brands
in the Indian market. The mineral water market in India is a USD 50 million industry and
produces 65 million crates. Around 4.9 million crates is usually consumed each month but it rises
to 5.2 million crates in the peak season.
ABOUT BEVERAGE COMPANIES IN INDIA

Fruit juices, pulp and concentrates, and sauces or ketchups are doing very well in the beverage
market in India for the past few years. Various milk products, health beverages, beer, and country
liquors have also been contributing largely in the rising demand of beverages in India. The
leading beverage companies in India are also exporting various products especially tea and
coffee to the international markets every year. Tea and coffee have registered an excellent growth
in the Indian beverage market as these are the most preferred drinks purchased excessively

around the world. Among all the leading beverage companies in India, Coca cola has accounted
for a thriving growth since its inception. It occupies around 60 percent of the carbonated drink
sector in the Indian beverage industry. Another predominant brand in beverages is Nestle India
Limited which occupies 61.85 percent of the total Nestle S.A. Switzerland. The Nestle products
are hugely exported to Russia apart from selling in the domestic market. - See more at:
http://business.mapsofindia.com/food-industry/beverage/#sthash.geaqgasv.dpuf
HISTORY OF PEPSI
Pepsi was founded in New York in 1965. It is Producing Non-alcoholic beverage and Food
processing items. Pepsi is a carbonated beverage that is produced and manufactured by PepsiCo.
It is sold in retail stores, restaurants cinemas and from vending machines. The drink was first

made in the 1890s by pharmacist Caleb Bradham in New Bern, North Carolina. The brand was
trademarked on June 16, 1903. Pepsi arrived on the market in India in 1988. March 22, 2012:
PepsiCo announced two new appointments to its India Region leadership team: Praveen
Someshwar, currently CEO India Beverages.
PepsiCo gained entry to India in 1988 by creating a joint venture with the Punjab governmentowned Punjab Agro Industrial Corporation (PAIC) and Voltas India Limited. This joint venture
marketed and sold Lehar Pepsi until 1991, when the use of foreign brands was allowed; PepsiCo
bought out its partners and ended the joint venture in 1994. Others 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 "Indias 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."
Pepsi is a hundred-year-old brand loved by over 200 million people worldwide. Pepsi is
ubiquitous on just about every social occasion.
Youngistaan loves it. 200 million people worldwide love it. But what has made Pepsi the single
largest selling soft drink brand in India is actually a formula concocted a century ago in a
faraway continent
HISTORY OF COCA-COLA
Coca-Cola history began in 1886 when the curiosity of an Atlanta pharmacist, Dr. John S.
Pemberton, led him to create a distinctive tasting soft drink that could be sold at soda fountains.
He created a flavored syrup, took it to his neighborhood pharmacy, where it was mixed with
carbonated water and deemed excellent by those who sampled it. Dr. Pembertons partner and

bookkeeper, Frank M. Robinson, is credited with naming the beverage Coca-Cola as well as
designing the trademarked, distinct script, still used today.
The Coca-Cola formula and brand was bought in 1889 by Asa Candler who incorporated The
Coca-Cola Company in 1892. The Coca-cola Company. Coca-Cola currently offers nearly 400
brands in over 200 countries or territories and serves 1.5 billion servings each day. The CocaCola Company is headquartered in Atlanta, Georgia. Its current president and CEO is Muhtar
Kent. Coca-Cola, the corporate nourishing global community with the worlds largest selling soft
drink concentrates since 1886, returns to India in 1993 after a gap of 16 years. With the
acquisitions of major brands in India it went on to be known as The Hindustan Coca-cola
Beverages Pvt Ltd.
Mr. Krishnakumar is Chief Executive Officer of Hindustan Coca-Cola Beverages Private
Limited. Mr. Rohit Gothi is Executive Director of Market Operations and Mr. Sanjay Sharma is
Executive Director of Supply Chain at present.
Coca-cola have gained the international standard ISO 14001 Environment Management System
certificate. The ISO 14001 certificate is the internationally recognized standard of Environmental
Management.
MISSION AND
VISION
MISSION AND VISION OF PEPSICO
MSSION:- As one of the largest food and beverage companies in the world, their mission is to
provide consumers around the world with delicious, affordable, convenient and complementary
foods and beverages from wholesome breakfasts to healthy and fun daytime snacks and
beverages to evening treats. They are committed to investing in their people, their company and
the communities where they operate to help position the company for long-term, sustainable
growth.
VISION:- At PepsiCo, they are committed to achieving business and financial success while
leaving a positive imprint on society delivering what we call Performance with Purpose.
In practice, Performance with Purpose means providing a wide range of foods and beverages
from treats to healthy eats; finding innovative ways to minimize their impact on the environment
and reduce their operating costs; providing a safe and inclusive workplace for their employees
globally; and respecting, supporting and investing in the local communities where they operate.
Wherever they do business, Performance with Purpose is their guide. They believe that
delivering for their consumers and customers, protecting the environment, sourcing with
integrity and investing in their employees are not simply good things to do, but that these actions
fuel their returns and position PepsiCo for long-term, sustainable growth.
GUIDING PRINCPLES: Care for their customers, their consumers and the world they live in.
Sell only products they can be proud of.
Speak with truth and candor.
Win with diversity and inclusion.
Balance short-term and long-term.
Respect others and succeed together.
MISSION AND VISION OF COCA-COLA
MISSION:- Coca-Colas Roadmap starts with their mission, which is enduring. It declares
their purpose as a company and serves as the standard against which they weigh their actions and
decisions.
To refresh the world...
To inspire moments of optimism and happiness

To create value and make a difference.
VISSION:- Coca-Colas vision serves as the framework for their Roadmap and guides every
aspect of their business by describing what they need to accomplish in order to continue
achieving sustainable, quality growth.
People:- Be a great place to work where people are inspired to be the best they can be.
Portfolio:- Bring to the world a portfolio of quality beverage brands that anticipate and
satisfy people's desires and needs.
Partners:- Nurture a winning network of customers and suppliers, together we create
mutual, enduring value.
Planet:- Be a responsible citizen that makes a difference by helping build and support
sustainable communities.
Profit:- Maximize long-term return to shareowners while being mindful of our overall
responsibilities.
Productivity:- Be a highly effective, lean and fast-moving organization.
NEED FOR THE STUDY
In the present scenario the competitions between the soft drinks increased very high. The
companies are struggling a lot to keep up their market share in the industry and to improve the
sales of their products i.e. the turnover of the company. For this the company has to know their
position in the market and the opinion and the loyalty of the customers and the retailers when
compared to their competitor. Because of this reason the comparative analysis is very important
and useful to the Company.

By the use of comparative analysis the companies can understand the position of the company
and the strength of the company in the market. Through the comparative analysis we can
understand that what strategies the competitors are using for the increase their sales volume.
From the study we can gather the information regarding the opinion of the retailers on the
companies comparatively and this will help to plans for the future to increase the performance of
the company and to gain the loyalty of the retailers when compared to the competitors.
OBJECTIVES OF THE STUDY
To study the overview of Pepsi and Coca-cola Company.
To know and compare the merchandising of Pepsi and Coke in retail outlets.
To identify the retailers opinion towards Pepsi products when compared to coke products.

To know various products introduced by Pepsi and Coca-cola.
To understand the marketing strategies adopted by Pepsi and Coca-cola.
To offer some finding and suggestions to the company for the improvement of its
performance.
MARKETING STRATEGIES
OF PEPSICO AND COCACOLA
MARKETING STRATEGY OF PEPSI
a) POSITIONING:Available in regular size. Packaging attractiveness

b) PRODUCT STRATEGY
Create more new flavors. Always focus on health sweet less, low carbon dioxide gas. Keep
design more on product packaging. Do research on customer needs, wants, and demands

Moreover, Pepsi can come out with as many new innovative products as they can depend on
countries cultures
c) PRICING STRATEGY
Provides credit facility to the distributor which helps them in proper running of their business
Provides more credit facility to the new and old wholesalers in order to expand Pepsis brand to
rural area. Start to build more partners with local brands to offer our Pepsi products only. Start to
do more sponsors with government, NGOs, or other events Product price are fixed by PEPSICO.
India according by Indian market.
d) DISTRIBUTION STRATEGY
The distribution of Pepsi channel such as:
Supermarkets
Convenience mart
Restaurants
Fast food outlets (KFC)
e) PROMOTION STRATEGY
This advertising is mostly creative and has different elements like music and sports
Pepsi.com also plays an important role in advertising and attracts target audience by giving
access to options like downloads, gaming, and music etc.
MARKETING STRATEGY OF COCA-COLA

a) PRODUCT:Coke was launched in India in Agra, October 24, in '93', soon after its traditional all Indian
launch of its Cola. At the sparking new bottling plants at Hathra near Agra. Coke was back with a
bang after its exit in 1977. Coke was planning to launch in next summer the orange drink, Fanta
with the clear lemon drink, sprite, following later in the year. Cokes product line includes, CocaCola, Thumps Up, Fanta, Maaza, Sprite, Club Soda, 7-up,Limca,Fanta apple, Diet Coke.
PACKAGING

Coca-Cola India Limited (CCIL) has bottled its Cola drink in different sizes and different
packaging i.e. 200 ml bottle, 300 ml. Bottle, 330 ml. Cans, 500 ml. and bottles of 1 and 2 liter.
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 Companys turn over, followed by Coca-Cola which has a 23% share and
Limca which accounts for 17% of the turnover of the company. 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.
b) PRICE:The price being fixed by industry, leaving very little role for the players to play in the setting of
the price, in turn making it difficult for competitors to compete on the basis of price. The fixed
cost structure in Carbonated Soft Drinks Industry, and competition make it very difficult to
change or alter the prices. The various costs incurred by the individual companies are almost
unavoidable. These being the costs of concentrates, standard bottling operations, distributor and
bottlers commissions, distribution expenses and the promotional and advertising expenditure (As
far as Coke is concerned, it had to incur a little more than Pepsi as Pepsi paved its way to India in
1989 while Coke made a comeback in 1993.)Currently a 300 ml. Coke bottle is available for
Rs10 the 330 can was initially available for Rs. 15 and now Rs.20. The prices of 500.
c) PLACE:Coke may have gained an early advantage over Pepsi since it took over Parle in 1994. Hence, it
had ready access to over 2, 00,000 retailer outlets and 60 bottlers. Coke was had a better
distribution network, owing to the wide network of Parley drinks all over India. Coke has further
expanded its distribution network. Coke and its product were available in over 3, 00,000 outlets
(in contrast with Pepsi's 2, 75,000). Coke has a greater advantage in terms of geographical
coverage. Coke and Pepsi have devised strategies to get rid of middlemen in the distribution

network. However, 50% of the industry unfortunately depends on these middlemen. As of now,
around 100 agents are present in Delhi. Bottlers of the 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.
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
CHANGING OF LOGOS DESIGN OVER PERIOD OF TIME

From the above picture we can observe that from origin itself Pepsi Company and Coca-cola
both have been changing their Logos. From this we can understand that both Companies have
been trying to create some place in a differently with its new Logos.
Previously the name of Pepsi is Pepsi-Cola, and now it is changed to Pepsi. The reason for
changing the Logos of Pepsi continuously was it merged many of the largest Food Companies
with Pepsi like Tropicana, Fritos Lay and Galaxy Co. and etc. every time when merged with any
Company it changed its Logos, because of this reason Pepsi became the largest food based
products producer in the world. Coke Company is confined to the soft drink production only.
Coke Company has the two cola brands, whereas Pepsi has only one brand of cola. Pepsi
Company is using excellent marketing strategies, such as celebrity appearances to sell their
products where as Cokes realistic approach has placed them at the top of the soft drink industry,
mainly in the case of cola sales. We can observe the cola war through the Advertising of the two
companies in the television.
They prepare the Ads to compete with one another. They will hire the famous persons and the
celebrities for their Ads. They will invest lots of amount on advertising. Through the advertising
only the sales of the soft drinks are in creased. Even though Pepsi trying to get the No-1 place in
the soft drinks industry the statistics have shown that they are not able to get that position when
compared to Coke Company for the past few years. In case of Advertising Pepsi dominated Coke
because most of the customers are attracted toward the Pepsi Companys Ads only not to the
Coke Companys Ads because Pepsi is spending more on advertising preparation when compared
to Coke Company.
COMPARISON OF SLOGANS BETWEEN PEPSI AND COCA-COLA
PEPSI SLOGANS:-
19901991: "Yehi hai right choice Baby, Aha"

19992006: "Yeh Dil Maange More!"
20002008: "Pepsi ye pyaas heh badi"
20092012: "Yeh hai youngistaan meri jaan"
20132014: "Oh Yes Abhi"
2015present: "Live It Abhi"
COCA-COLA SLOGANS:1995: "Always the Real Thing!"

2001: Life Is Good!
2003: Jo Chaho Ho Jaye, Koka-kola enjoy!
2006: Thanda matalab Coca-Cola!
2007: Pio Sar Uthake!
2010: "Open Happiness"
2011: "Brrrrrrrrr" ("Energizing Refreshment")
2012: Believe In Happier Tomorrow!
2013: Bewajah Khushiya Lutao Coca-cola Pilao!
2014: Choti Ho Ya Badi Har Khushi me Coca-cola!
2015: Test Jo Har Dil Chahe!
ADVERTISING STRATEGIES OF PEPSI AND COCA-COLA
IMAGE EVALUTION STRATEGY:A closer look at the brand identities of each of the brands helps assess how successful their
advertising campaigns have been in creating a brand image in tune with it, while being sensitive
to the value system of the target audience.
PEPSICOS CAMPAIGN:The analysis of Pepsi, 7 UP and Mountain Dew from the portfolio of PepsiCo puts forth some
interesting aspects about the evolution of these brands. Pepsi was one of the first products to
Indian markets after the economic reforms of 1991.
I.
PEPSI:-Pepsi began with the Yehi hai Right Choice Baby campaign, which has been one
of the most memorable campaigns of the brand, featuring celebrity endorsers such as
Shah Rukh Khan among others. The focus, as is clearly evident, is on the product with
the youth as its target segment. Yeh Dil Mange More and Yeh Pyaas Hai Badi were some
of the later campaigns.
Yeh Dil Mange More campaign was again a great success, having balanced the emotional
as well as the functional appeal of the product. Featuring Sachin Tendulkar and many
other leading stars at that point of time, this was also one of the longest campaigns
carried out by Pepsi. The company however failed to maintain the trend and leverage it.
Instead of moving on to a complete emotional appeal platform, the company decided on a
product based promotion campaign. Though there is still some amount of emotional
appeal to its campaigns, the principal focus is on the product - it being a preferred thirst
quencher.
II.
7 UP:- In its early days, 7 UP inherited the global Fido-Dido campaign for promotion in
India as well. However, with changing times and a contextual difference in India, a much
more focused campaign was required. This led to the Keep It Cool campaign, which was
targeted primarily at the youth and the teenager segment. Hence the appeal was at a more
subtle, emotional level, which was meant to convey a potential lifestyle statement. The
recent campaign of Bheja Fry essentially leverages on the same emotional appeal where
the Keep It Cool campaign has been somewhat tweaked to have a local appeal.
III.
MOUNTAIN DEW:- Mountain Dew is the latest entrant in the product portfolio. This
product too has the appeal of being the drink of a daredevil or the No Fear personality.
The campaigns launched include Do the Dew and Dar Ke Aagey Jeet Hai. The initial
campaign was unclear in terms of its appeal and the target segment, as a result of which
the brand suffered some jolts in the beginning. However, the latest campaign captures the

No Fear or the Macho Man image. In this sense, the brand directly competes with Thums
Up from the Coca Cola Stable.
COCA-COLA CAMPAIGN:Jo Chaaho Ho Jaaye, Coca Cola Enjoy was one of the companys first campaigns in India. It
was remarkably well executed, and appealed both at a product level as well as at an emotional
level. These ads featured celebrities such as Hrithik Roshan and Aishwarya Rai. The target
segment for Coca Cola in its initial days was the youth segment and this campaign clearly
connected well with the segment. However, the next advertising campaign of Thanda Matlab
Coca Cola was launched with an objective to have a mass appeal. The campaign leveraged the
product platform rather than the emotional platform that it had established earlier.
It is however, important to note here that Coca Cola made some exceptions for India. The
company has similar marketing strategies across geographies and usually doesnt depend on
celebrity endorsements. But given the great fan-following, and in adapting to the Indian context,
the company had to initially deviate from its set charter. However with the current campaign
of Open Happiness, Coca Cola seems to have achieved both an emotional as well as a mass
appeal. There is a very natural connect with the target segment, that of celebrating every day, and
sharing small moments of joy with our loved ones, irrespective of any barriers.
I.
THUMS UP:- Thums Up is a brand of cola in India. The logo is a red thumbs up. It was
introduced in 1977 to offset the withdrawal of The Coca-Cola Company from India. The
brand was later bought by Coca-Cola who re-launched it in order to compete against
Pepsi. As of February 2012, Thums Up is the leader in the cola segment in India,
commanding approximately 42% market share and an overall 15% market share in the
Indian aerated waters market.
II.
SPRITE:- Sprite - the other brand from the Coca Cola stable began its journey with the
campaign titled All Taste No Gyaan. This appealed greatly to the youth who dont like to
be preached and relish their sense of ownership and decision making. Sprite has never
depended on celebrity endorsements as a way to gain brand recognition or consumer
recall. The ads are designed to be very witty, and generally connect very well with the
target audience by capturing every day moments.Seedhi Baat No Bakwaas - its next
campaign instantly connected with the target audience by coming across as a brand that
was different from the other, one that focused on the individuality of the consumer. The
emotional appeal is much stronger and shows a clear sign of maturity of the campaign.
CONTROVERSY ON PRESENCE OF PESTICIDES
In 2003 and again in 2006, the Centre for Science and Environment (CSE), a non-governmental
organization in New Delhi, claimed that soda drinks produced by manufacturers in India,
including both Pepsi and Coca-Cola, had dangerously 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.
TOP BRANDS OF PEPSI
From the above image we find that Pepsi is not competing with its single brand that is cola brand
but also with different brands such as Lays, Tropicana, Doritos, Cheetos, Mountain Dew, Diet
Pepsi, Pepsi Max, Aquafina, Gatorade, 7 up and many more shown in the above picture.
As PepsiCo began to extend its operations beyond soft drinks and snack foods into other lines of
foods and beverages. PepsiCo purchased the orange juice company Tropicana Products in 1998,
and merged with Quaker Oats Company in 2001, adding with it the Gatorade sports drink line
and other Quaker Oats brands such as Chewy Granola Bars and Aunt Jemima, among others. In
August 2009, PepsiCo made a $7 billion offer to acquire the two largest bottlers of its products in
North America: Pepsi Bottling Group and PepsiAmericas. In 2010 this acquisition was
completed, resulting in the formation of a new wholly owned subsidiary of PepsiCo, Pepsi
Beverages Company
PepsiCo's Frito-Lay and Quaker Oats brands hold a significant share of the U.S. snack food
market, accounting for approximately 39 percent of U.S. snack food sales in 2009. One of
PepsiCo's primary competitors in the snack food market overall is Kraft Foods, which in the
same year held 11 percent of the U.S. snack market share
TOP BRANDS OF COCA-COLA
As usual Coca-Cola is also forward in owing brands. Coca-Cola has following brands
worldwide:Powerade Zero, Odwalla, Nos, Honest Tea, Burn, Fuze Tea, Fuze, Mello Yello, Del Walle,
Minute Maid, Coca-Cola Diet and many more.
Sprite were introduced in 1961, Sprite is the world's leading lemon-lime flavored soft drink.
Sprite is sold in more than 190 countries and ranks as the No. 3 soft drink worldwide.
Fanta were Introduced in 1940, Fanta is the second oldest brand of The Coca-Cola Company and
our second largest brand outside the US. Fanta Orange is the leading flavor but almost every fruit
grown is available as a Fanta flavor somewhere. Consumed more than 130 million times every
day around the world, consumers love Fanta for its great, fruity taste.
Diet Coke, also known as Coca-Cola light in some markets, is a sugar- and calorie-free soft
drink. It was first introduced in the United States on August 9, 1982, as the first new brand since
1886 to use the Coca-Cola Trademark. Today, Diet Coke/Coca-Cola light is one of the largest
and most successful brands of The Coca-Cola Company, available in more than 150 markets
around the world.

Minute Maid has been making juice for more than 60 years and has a heritage of nutrition,
innovation, and quality. In 1945, the U.S. Army ordered 500,000 pounds of powdered orange
juice from the Florida Foods Corporation, which later renames itself to Vacuum Foods and then
finally the Minute Maid Corporation. The Minute Maid Corporation was acquired by The CocaCola Company in 1960, marking its first venture outside of soft drinks.
Another product from Coca-Cola is Powerade Zero. It electrolytes without the calories.
POWERADE ZERO is a great-tasting electrolyte-enhanced sports and fitness drink. It
combines electrolytes with fluids for hydration. It quenches thirst and replenishes minerals lost
during sports or other intense activities.
MARKET ANALYSIS
As we can see above pie diagram it is easily understand that Coca-Cola is on the dominant
position with having 51% share in 2011.Pepsico seems second largest insoft drink market at
global level with having 22% share.
It can be observed that Coca-Cola and PepsiCo are the top 2 brands that are ruling the global
market of soft drink beverages.
The Coca-Cola Company has historically been considered PepsiCo's primary competitor in the
beverage market, and in December 2005, PepsiCo surpassed The Coca-Cola Company in market
value for the first time in 112 years since both companies began to compete.
In 2009, The Coca-Cola Company held a higher market share in carbonated soft drink sales
within the U.S. In the same year, PepsiCo maintained a higher share of the U.S. refreshment
beverage market, however, reflecting the differences in product lines between the two
companies. As a result of mergers, acquisitions and partnerships pursued by PepsiCo in the
1990s and 2000s, its business has shifted to include a broader product base, including foods,
snacks and beverages.
The majority of PepsiCo's revenues no longer come from the production and sale of carbonated
soft drinks. Beverages accounted for less than 50 percent of its total revenue in 2009. In the same
year, slightly more than 60 percent of PepsiCo's beverage sales came from its primary noncarbonated brands, namely Gatorade and Tropicana.
According to Industry Report conducted in India, Many analysts say that despite its head start in
the market, PepsiCo has failed to overtake Coca-Cola, which strategically acquired local brands
Thums Up and Limca in 1993 from Parle Products. Its recently launched cola Atom is seen by
critics as a "me-too" product that seeks to rival Thums Up.
A Coca-Cola spokesperson says: "Sparkling beverage volume growth in the quarter was led by
brand Coca-Cola at 30 per cent, and driven by strong integrated marketing campaigns and
continued expansion of packaging choices to consumers."
SKA Advisor Alagh says: "The current winner in the cola battle is Coke, but the winner of the
war is yet to play out.
SALES REVENUE OF PEPSICO AND COCA COLA
SALES REVERNUE OF PEPSICO

Fiscal year is JanuaryDecember. All values USD
millions.
Sales/Revenue
2010
2011
2012
2013
2014
57.84B
66.5B
65.49B
66.42B
66.68
B
14.98%
-1.52%
1.41%
0.40%
Sales Growth
SALES REVERNUE OF COCA COLA CO.
Fiscal year is JanuaryDecember. All values USD

millions.
Sales/Revenue
Sales Growth
2010
2011
2012
2013
2014
35.14B
46.77B
48.07B
46.7B
45.93
B
33.10%
2.78%
-2.85%
1.64%
SOURCE:- MARKETWATCH.COM
As you see the above table of whole PepsiCo and Coca-Cola co. it throws light on who is more
efficient and better although coca-cola is better in soft drink beverages. The above table clearly
shows the sales revenue of both the company, PepsiCo products has lot of demand as its sales
revenue in 2010 was 57.84 billion dollar increased to 66.68 billion dollar in 2014.
CASE STUDY OF PEPSI
Background:
Pepsi has been a winner when it comes to advertising. It talks to the youth and taps the pulse of
the generation. Whether it was Yehi hai right choice baby, Change the game or Oh yes abhi,

Pepsi has always connected with the current trends. But Pepsi never tried to promote any social
changes or dig deep into the subjective alteration of contemporary urban societies but always
focused on two most important parameters; they chose the right celebrities and wrote the perfect
taglines! So, as Pepsi was losing to other beverages in the market, it changed its philosophy of
designing a campaign without compromising on the ad attributes. The Oh yes abhi campaign
was meant to target the youth known for its impatience but with a positive attitude. They made
impatience a virtue!
Challenge:
Today fashion, fast food, automobile, beverage, mobile brands and many others are all fighting
for the youths share of mind, heart and wallet. In this fight, the iconic brand was dipping on
youth scores.
Pepsi was
a. Not connecting specifically with the youth as a tribe but instead being more universal & allencompassing
b. Moving from young & irreverent to kiddish and frivolous
The concern was the fact that Coca Cola Indias top brands Sprite, Thums Up and Coke were
focusing on the youth in messaging and positioning. This wasnt a case of market share being
challenged this time; what worried Pepsi was that in a category like Cola (where image is
everything) losing youth salience to other marketers spelled trouble.
The Big Idea:
While Thums Ups world was of hyper-masculinity (body), Coca Colas about happiness (heart),
and Sprites was of mental smarts (mind), Pepsi decided to own the bold irreverent Spirit of
youth by making impatience a virtue!
Strategy:
Pepsi carried out a series of research throughout 2012 to understand the pulse of the Youth that
showed:
a. The young believe that the present is exciting and acting Now leads to a better Next
b. Today, a surfeit of opportunity to experience life has created an increased Fear of Missing
Out thereby fuelling the need to Make the Most of Now.

Now, Brand Pepsi had to make the most of this phenomenon. In India, Pepsi has been its best
whenever the brand challenged an existing order or an existing convention, whenever the brand
gave a license to the youth gave them a mantra to live by.
So, while the youth are impatient to make the most of now and the adults frown at their
restlessness, Pepsi sided with the youngsters and chose to stoke this cant wait attitude!
Execution:
Creating a New Youth Anthem
Pepsi created an Anthem for a TV Commercial OH YES ABHI that aired across multiple
youth and general entertainment channels. The TVC used celebrities like Ranbir Kapoor,
Priyanka Chopra, M.S. Dhoni as well as regular youngsters to show how ones impatience to act
now and following ones heart helps make the here and now exciting. Celebrities were carefully
chosen to be the ones who had achieved a lot early in their respective careers and with their bold,
dynamic all-new look. NOW was dazzlingly captured.
Pepsi wanted to evoke urgency for NOW through digital where the target audience resides.
With a series of contests and conversations, it encouraged people to act Now!
1. #CANTWAITABHI: It asked people to show their impatient side by telling what was that
they cant wait to do using #CantWaitAbhi on Twitter. All impatient wishes were curated
in a virtual Pepsi bottle on our microsite. Pepsi made the most impatient users wishes
come true.
2. PEPSI MUSIC ABHI: Indias first on-demand online concert engaged music lovers
across the nation
3. PEPSI SHOT 60: Make the most of your impatience! Pepsi Shot 60, the shortest shortfilm making competition, gave users 24 hours to shoot, edit and submit a 60 second film.
Result:
CASE STUDY OF COCA-COLA
CASE:
In 1906, Harvey Washington Wiley passed the Pure Food and Drug Act as the first commissioner
of the Food and Drug Administration (FDA). The FDA started prosecuting companies which
were selling products with harmful components and companies which were making misleading
claims about their products. In 1903, Coca-Cola had already started using spent coca leaves
(which only carried trace amounts of cocaine) and had dropped the claim that it cured headaches.
But it still contained caffeine, and Wiley believed that even small amounts of caffeine in
beverages were harmful to people, and he was worried that Coca-Cola was being consumed by
children as young as 4 years old. So, in 1909, he ordered the seizure of 40 barrels and 20 kegs of
a Coca-Cola shipment.
SOLUTION:
"Adulterated": The decision, delivered by Justice Hughes, states that the intent of the word
"added" in the context of the Act did not exclude the ingredients of a formula "sold under some
fanciful name which would be distinctive" if any were found deleterious and was included to
protect natural foodstuffs from prosecution because of constituent poisons rendered inert in their
natural state (such as fusel oil in liquor); furthermore, it states that the introduction of caffeine in
the later stages of syrup production made it an "added ingredient" in any sense of the term and
the removal of harmful ingredients, even if vital to the identity of the product, did not constitute
adulteration.
"Misbranded": Of the misbranding charge, the Court held neither had the government proved
that "coca cola" was a descriptive name nor had the Coca-Cola Company proved it was not,
making both of these assertions irrelevant. Thus the Court found that the issue of whether the
product contained any coca or cola had not been settled.
"Details": The case was returned to the lower court for retrial to determine the remaining, factual
matters; Justice McReynolds abstained.
CASE:
Escola v. Coca-Cola Bottling Co., 24 Cal.2d 453, 150 P.2d 436 (1944), was a decision of the
Supreme Court of California involving an injury caused by an exploding bottle of Coca-Cola. It
was an important case in the development of the common law of product liability in the United
States, not so much for the actual majority opinion, but for the concurring opinion of California
Supreme Court justice Roger Traynor.
SOLUTION:

Chief Justice Phil S. Gibson affirmed the judgment of the lower court. He held that even though
the instrument causing the injury was not under the exclusive control of the defendant at the time
of the accident, the defendant did have control at the time the alleged negligent act took place (in
this case, the filling of the defective bottle).
Upon an examination of the record, the evidence appears sufficient to support a reasonable
inference that the bottle here involved was not damaged by any extraneous force after delivery to
the restaurant by defendant. It follows, therefore, that the bottle was in some manner defective at
the time defendant relinquished control, because sound and properly prepared bottles of
carbonated liquids do not ordinarily explode when carefully handled.
Furthermore, even though the defendant produced evidence to rebut the inference of negligence
which arises upon application of the doctrine of res ipsa loquitur by discussing its safety testing
procedures, Gibson ruled that the question was properly submitted to the jury, and did not
modify the jury's verdict.
CASE:
Water use
In March 2004, local officials in Kerala shut down a $16 million Coke bottling plant blamed for
a drastic decline in both quantity and quality of water available to local farmers and villagers.
In April 2005, the Kerala High Court rejected water use claims, noting that wells there continued
to dry up last summer, months after the local Coke plant stopped operating. Further, a scientific
study requested by the court found that while the plant had "aggravated the water scarcity
situation," the "most significant factor" was a lack of rainfall.
SOLUTION:
The case has been appealed and a decision is pending.[15] Coca-Cola has set up a page to rebut
these charges at cokefacts.org that was once owned by its detractors.[16][citation needed]
CASE:
Animal testing
In 2007, the Coca-Cola Company announced it would no longer conduct or directly fund
laboratory experiments on animals unless required by law to do so. The company's
announcement came after PETA criticized the company for funding invasive experiments on
animals including one study in which experimenters cut into the face of chimpanzees to study the
animals' nerve impulses used in the perception of sweet taste. Some experimenters have
criticized PETA's campaign against Coca-Cola and other companies claiming that their work
would be undermined if they lost corporate funding.
CASE:
Pesticide contamination
In 2003, the Centre for Science and Environment (CSE), a non-governmental organization in
New Delhi, said aerated waters produced by soft drinks manufacturers in India, including
multinational giants PepsiCo and Coca-Cola, contained toxins including lindane, DDT,
malathion and chlorpyrifos - pesticides that can contribute to cancer and a breakdown of the
immune system. Tested products included Coke, Pepsi, and several other soft drinks (7Up,
Mirinda, Fanta, Thums Up, Limca, Sprite), many produced by The Coca-Cola Company.
CSE found that the Indian produced Pepsi's soft drink products had 36 times the level of
pesticide residues permitted under European Union regulations; Coca-Cola's 30 times. CSE said
it had tested the same products in the US and found no such residues.
Coca-Cola and PepsiCo angrily denied allegations that their products manufactured in India
contained toxin levels far above the norms permitted in the developed world. David Cox, Coke's
Hong Kong-based communications director for Asia, accused Sunita Narain, CSE's director, of
"brand jacking" using Coke's brand name to draw attention to her campaign against
pesticides. Narain defended CSE's actions by describing them as a natural follow-up to a
previous study it did on bottled water.
In 2004, an Indian parliamentary committee backed up CSE's findings, and a governmentappointed committee was tasked with developing the world's first pesticide standards for soft
drinks. Coke and PepsiCo oppose the move, arguing that lab tests aren't reliable enough to detect
minute traces of pesticides in complex drinks like soda.
The Coca-Cola Company has responded that its plants filter water to remove potential
contaminants and that its products are tested for pesticides and must meet minimum health
standards before they are distributed.
Coca-Cola had registered an 11 percent drop in sales after the pesticide allegations were made in
2003.
As of 2005, Coke and Pepsi together hold 95% market share of soft-drink sales in India.
In 2006, the Indian state of Kerala banned the sale and production of Coca-Cola, along with
other soft drinks, due to concerns of high levels of pesticide residue On Friday, September 22,
2006, the High Court in Kerala overturned the Kerala ban, ruling that only the federal
government can ban food products.
FINDING
Q1. What is your age?
ANS:
Name
Respondent
11 20
40
21 40
37
40 above
23
Q2. Do you take any soft drink regularly or occasionally?

ANS:
Name
Respondent
Regularly
65
Occasionally
35
Q3. Which brand of cold drink you like the most?

ANS:
Name
Respondent
Pepsi
40
Coca Cola
45
Neither
15
Q4. What is the reason behind choosing your brand?

ANS:
Name
Respondent
Taste
41
Advertisement
4
Easily available
0
Brand
20
Price
35
Q5. Which quantity of your cold drink you often purchase?

ANS:
Name
Respondent
300ml
61
400ml
23
1250ml
16
Orange
17
Lemon
20
Q6. Which flavor do you generally prefer?

ANS:
Name
Respondent
Cola
63

Q7. If cola which particular brand you like?
ANS:
Name
Respondent
Pepsi
42
Thums Up
45
Diet Coke
13
Q8. If orange which particular brand you like?

ANS:
Name
Respondent
Mirinda
55
Fanta
45
Q9. If lemon which particular brand you like?

ANS:
Name
Respondent
Dew
32
Limca
23
7 UP
45
Q10. Advertisements of which cola drink you remember the most?

ANS:
Name
Coke
Pepsi
7 UP
Respondent
25
35
Sprit
e
2
Fanta
Thums Up
30
Q11. If your desired brand of cold drink is not available at particular shop then
ANS:
Options
a) Take any other brand
b) visit next shop
c) Suggest to have that brand
d) dont take brand
Respondent
18
40
30
12
Q12. Which one do you consider to be most popular?

ANS:
Name
Respondent
Regular Coca-Cola
55
Regular Pepsi
45
Q13. Which one do you find more available when ordering one of the sodas when going to
restaurants?
ANS:
Name
Respondent
Regular Coca Cola

35
Regular Pepsi
37
Both
28
Q14. Which of the marketing campaign do you prefer?

ANS:
Name
Respondent
Always Coca
Cola
30
Pepsi Celebrity
campaign
52
Dont Know
12
SUGGESIONS
Though the coke is enjoying about 42.4% of the total market share and it is market leader in
Indian beverage industry. While with the 28.7% market share Pepsi is on the second step. If we
are analyzing properly then we find Pepsi is small product portfolio than coke, which is
responsible for its second position.
Pepsi should increase its product portfolio to capture the Cokes market share.
Companies should focus on the taste of the product because 77% population is influenced by
taste only. Young generation is the potential consumer so companies should more focus on
them. As we find that 40 % population consumes 200ml cold drinks. Which comes in
glass bottles, these bottles are being retuned back for refilling to companies? Which is
incurred again cost of re-transportation. If company start to supply 200 ml cold drinks in pet
bottles (plastic bottles) it will be good for company because 40% of population is using only
200ml.
CONCLUSION
In my conclusion,
I would like to point out that Pepsi and Coke have managed some extremely successful
brands; with time focus will be more and more on Emerging markets plus there will be a lot of
emphasis on healthier beverages and more innovative products. Stress will also be laid on
cleaner and more environment friendly practices employed by these companies.
PepsiCo
1. Continue with their diversification strategy.
2. Reduce system wide costs with better integration.
3. Expand into new markets.
4. Concentrate into high growth areas like nutrition supplants and healthy foods.
Coca Cola
1. Continue to capitalize on their brand image by following the differentiation strategy.
2. Bring costs down by integration both vertical and horizontal.
3. Keep hold of their first mover advantage
The project report prepared on topic- comparative study of PepsiCo and Coca-Cola by me using
following means:-
1. Newspapers
2. Magazines
3. Questionnaire
WEBLIOGRAPHY
4. https://www.scribd.com/doc/48391213/10/PEPSIS-MARKETING-STRATEGIES
5.
6. https://prezi.com/i92ke9dg4z3h/comparative-study-of-pepsico-and-coca-colastrategies/
7. http://business.mapsofindia.com/top-brands-india/top-soft-drink-brands-in-india.html
8. http://www.coca-colacompany.com/our-company/mission-vision-values
9. http://www.pepsicoindia.co.in/company/our-mission-and-vision.html
10. http://www.slideshare.net/touchsenghour/pepsi-marketing-plan

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