A study on Market analysis on Tropicana with reference to Chennai, Tamilnadu Introduction According to the marketing strategies used by Pepsi,

Customers will have diverse experiences and preferences, given their individual references and location. The Pepsi Company is modifying its approach so that it can strike into these distinctions and provide the fitting marketing activities, pricing strategies and beverages to be connected with current and potential customers. Its "think local, act local" strategy to marketing permissible adopting communications to suit local and global situations. It wants to offer consumers with beverages to be adaptable with their different life styles and life stages. Pepsi is placing more liability and answerability in the hands of its managers who are closest to the target market, to create good channels of communication, and gain its loyalty, and achieve the company marketing and overall goals. Pepsi thrives when people are permitted to utilize their insight to construct the business in ways best suitable to their culture and business conditions. Efforts were made to give flexibility to managers to be adaptable with the market shocks, and try to make the significant modifications. Moreover P& G used to utilize a flexible pricing strategy to avoid any loss in market share to other rivals. it depends in certain scenarios to price its products low and obtain maximum profit on spare parts, in addition it uses different prices and different price lists for different markets to extract the fitting one .In other scenarios, it sets price for selected products at 10% below market leader to maximize sales, and to allow increased production and reduce unit production cost. In recent years a rapid health growth was witnessed in the Indian food sector, along with a few of the local companies reporting massive growth. The food and beverage industry is being reinforced by the Saudi government by offering financings and grants on designated equipment, and through the burden of high prices on imports that competes with local products.

Important sub segments in the Indias food and beverage processing industry, comprising meat, dairy, and juice business, which has established to a degree in current years to the point where they are meeting most of the local demand. Industry profile Around 1984 the first branded soft drink came in the Indian market. This soft drink was named as gold spot. Before Coca-Cola entered the country to dominant the scene in 1950s, Parley exports Pvt. Ltd were the first Indian company to introduce a lemon soft drink, this drink was known as Limca and it was introduce in 1970s. However, before this they had introduced cola piping, which was withdrawn in face of tough competition from coca-cola. In the year 1977 coca-cola left Indian market and this brought in an opportunity for various Indian companies to show their caliber, at this time a new soft drink was introduced by parley product and this was named thrums up. This was Coca-cola drink, which had a burnt sugar color. This drink was introduced with a mighty happy days are here again. As if happy days went away with coca-cola .There was another company named pure drinks, which introduced the soft drink named campa-cola along with orange and lemon flavors. Just after this many more companies entered the Indian soft drink market. A soft drink named double-7 had been introduced by a company modern baker. Another company, Mohan meckins also came with a softy drink named marry & puck up. Mcdowell came with thrill, rush and sprit. Previously there was no competition in the Indian soft drink market but with all these companies coming in the Indian market a huge competition was a place with high voltage advertisement. But in the year 1988 Pepsi was given permission to sell its soft drinks in the Indian market by the government of India. Coca-cola also co history of soft drink come back 1993. Soft Drink Market Indian Scenario Indian soft drink industry is witnessing a boom time. Its growth rate is around 20% with such a high growth rate, volume could reach billion crates with 10 years .Three major multinational

companies are fighting to grab a major chunk of business from Indian markets. These three major multinational companies are fighting to grab a major chunk of business from Indian markets. These three coca-cola, Pepsi, Cadbury. All of these companies have seen an enormous potential in this country .Consequently, by world standard India per capita consumption of soft drinks is still very low. Therefore these soft drinks grants feel that fire capita consumption can only grow up. Soft drinks industries has already seen and estimated sale of around 240 million crates higher than last years sale of 204 million in 1998. The main reason for such a high growth rate heightened competition between Coca-cola and Pepsi, Cadbury, being a new entrant is for behind. India is actually more vivid in taste and preference than any other country market. Delhi jar instance, accounts for about 20% of total soft consumption in terms of sales. There are about 4, 80,000 soft drinks retailers in India and their numbers are increasing day by day. This actually means that there is just one soft drink retailer on a population of 37,600, which is far below the international standard. Where as Philippines has one soft drink retail counter over a population of 150 people i.e. 4, 00,000 outlets on population of 60 million. Soft drinks shows strong double-digit growth In 2011, soft drinks registered a higher off-trade value growth rate than the review period average. This growth was attributable to strong double-digit performances in sectors such as sports and energy drinks, bottled water and fruit/vegetable juice, which had a good year due to rising mercury levels. Long summers and higher disposable incomes are the main growth drivers for the soft drinks category. Fruit/vegetable juice outshines carbonates in terms of growth Fruit/vegetable juice showed considerably stronger growth than carbonates, being viewed as a healthier alternative. Soft drinks giants Coca-Cola India Pvt Ltd and pepsico India Holdings Pvt Ltd have recognised this trend and are strengthening their product offerings in fruit/vegetable juice. With a focus on healthy diets, consumers in urban areas are slowly shifting from carbonates to fruit/vegetable juice, which also received a major growth boost from on-the-go consumption.

Coca-Cola and PepsiCo compete through lemonade/lime carbonates Lemonade/lime carbonates was among the stronger performers in the carbonates category in 2011. Coca-Cola India Pvt Ltd and PepsiCo India Holdings Pvt Ltd continue to compete aggressively in this category by increasing the visibility of their brands Sprite, Limca and 7-Up respectively. Catchy taglines were used by manufacturers to generate consumer interest, alongside aggressive campaigns using Bolly wood actors. Modern retail shows steady growth Leading chained retailers are on a major expansion drive, which has led to an increase in soft drinks volume sales. Manufacturers have leveraged this to showcase their new variants in a bid to broaden their consumer base. The modern retailing channel is helping to facilitate the growth of soft drinks. Modern retail offers a unique experience for consumers, where they can touch and feel the product before buying. Tier two and three cities have also seen the robust growth of modern retail outlets. Indians will continue to consume more soft drinks Dynamic products such as sports and energy drinks, bottled water and fruit/vegetable juice will drive strong growth in soft drinks during the forecast period. Soft drinks giants pepsico India Holdings Pvt Ltd and Coca-Cola India Pvt Ltd are targeting the rural segment to enhance their presence. The outlook for soft drinks looks very positive in the forecast period due to strong marketing activities and product innovations by manufacturers. Company profile One of the dynamic industries in our country is the soft drink industry. Soft drinks are a nonalcoholic beverage made with carbonated water. Such drinks are called soft to distinguish them from Alcoholic or hard drinks. Soft drinks are also called pop because the type of bottle caps used before 1890s made a popping noise when removed. People in various areas call soft drinks as soda. Most soft drinks are sweetened and flavored with specially prepared syrup, the

flavoring are usually made from various plant part such as root, bark and seeds of cola tree. Most brands of soft drinks were manufactured through franchised bottle with a security formulated beverage syrup or flavor base. Mr. Joseph Priestly, an English Chemist, produced the first artificially carbonated water in the year 1772. At that time mineral water was a popular remedy for certain diseases. Previously artificial mineral water was also called as soda water. In 1806 bottled soft water was produced and sold by Mr. Benjamin Sill man, a Chemistry Professor at Yale College. The number of soft drink bottling company in the United States increased approximately from 65 to 2000, during 1970s increased in the price of soft drinks. Many people switched to less expensive noncarbonated soft drinks, produced using powdered mixes which became an important part of an industry Corporate Overview Pepsico was incorporated in the year 1919 and was re-incorporated in North Carolina in 1986. Pepsi is engaged in beverage and snack food business. Pepsico is a multinational company and it is most successful consumer product company in the world with annual revenue of $ 20 billion and about 1, 43,000 employees. Some of pepsicos brand names are nearly 100 years old. Pepsico has achieved a leadership position in each of the two major packaged good business i.e. Beverage and snack chips. Pepsico the conglomerate king of soft drink has its wide range of soft drinks products available in every book & corner of the world. The Indian Story Pepsi & Co came to India as food processing unit, Punjab during the year 1986-87 head office Pepsi food unit situated in Delhi, employees are more than 2500 people. Pepsi co today is the leader in the cola and orange segments of beverages in India and enjoys leadership in soft drinks in many parts of the country. It focuses on execution excellence, strengthen, bottle network, reach and penetration in rural and semi-urban areas and customer focused marketing areas.

Pepsico is a global food and beverage leader with net revenues of more than $65 billion and a product portfolio that includes 22 brands that generate more than $1 billion each in annual retail sales. Our main businesses Quaker, Tropicana, Gatorade, Frito-Lay and Pepsi-Cola make hundreds of enjoyable foods and beverages that are loved throughout the world. Pepsicos people are united by our unique commitment to sustainable growth by investing in a healthier future for people and our planet, which Pepsi believe also means a more successful future for pepsico. Pepsi call this commitment Performance with Purpose: pepsicos promise to provide a wide range of foods and beverages for local tastes; to find innovative ways to minimize our impact on the environment by conserving energy and water and reducing packaging volume; to provide a great workplace for our associates; and to respect, support and invest in the local communities where Pepsi operate Mission We have absolute clarity about what we do WE SELL HIGH QUALITY FOOD AND BEVERAGE PRODUCTS. Our success will ensure: customers will build their business, employees build their futures, and shareholders build their wealth. Vision Pepsico's responsibility is to continually improve all aspects of the world in which we operate social, economic - creating a better tomorrow than today. Products in India 1. 7UP 2. Aliva 3. Aquafina 4. Cheetos 5. Dukes

6. Gatorade 7. Kurkure 8. Lays 9. Lehar 10. Mirinda 11. Tropicana 12. Nimbooz 13. Pepsi 14. Quker oats 15. Slice 16. Tropicana 17. Uncle chipps Brand History Tropicana was founded in Bradenton, Florida, USA, in 1947. It is now enjoyed almost everywhere in the world. Carefully nurtured for over 50 years, Tropicana has matured into one of the most respected beverage brands. Tropicana is the #1 brand in packaged 100% Juice in the world in 2011 in off-trade volume. It is today available in 63 countries. Since 1998, Tropicana has been owned by pepsico, Inc. Tropicana Premium Gold was re-launched as Tropicana 100% in 2008. Brand Advantage

Tropicana continues to select the best fruit to manufacture high-quality juices and original products, pioneer innovative processes and explore new markets for its products. It is committed to fostering healthy lifestyles by ensuring that its products are naturally nutritious and provide the daily benefits that one needs. In India, Tropicana comes in two categories: 100% Juices (sold as Tropicana 100%) and Juice Beverages (sold as Tropicana). Quick Brand Facts 1. Launched in India in 2004. 2. Available in two categories - 100 percent juice and juice-based drinks. Literature review The soft drink industry is very competitive for all corporations involved, with the greatest competition being that from rival sellers within the industry. All soft drink companies have to think about the pressures; that from rival sellers within the industry, new entrants to the industry, substitute products, suppliers, and buyers. The competitive pressure from rival sellers is the greatest competition that Coca-Cola faces in the soft drink industry. Coca-Cola, Pepsi Co., and Cadbury Schweppes are the largest competitors in this industry, and they are all globally established which creates a great amount of competition. Though Coca-Cola owns four of the top five soft drink brands (Coca-Cola, Diet Coke, Fanta, and Sprite), it had lower sales in 2005 than did PepsiCo (Murray, 2006c). However, Coca-Cola has higher sales in the global market than PepsiCo. In 2004, PepsiCo dominated North America with sales of $22 billion, whereas Coca-Cola only had about $6.6 billion, with more of their sales coming from overseas. PepsiCo is the main competitor for Coca-Cola and these two brands have been in a power struggle for years (Murray, 2006c). Brand name loyalty is another competitive pressure. The Brand Keys Customer Loyalty Leaders Survey (2004) shows the brands with the greatest customer loyalty in all industries.

Diet Pepsi ranked 17th and Diet Coke ranked 36th as having the most loyal customers to their brands. The new competition between rival sellers is to create new varieties of soft drinks, such as vanilla and cherry, in order to keep increasing sales and enticing new customers (Murray, 2006c). New entrants are not a strong competitive pressure for the soft drink industry. Coca-Cola and Pepsi Co dominate the industry with their strong brand name and great distribution channels. In addition, the soft-drink industry is fully saturated and growth is small. This makes it very difficult for new, unknown entrants to start competing against the existing firms. Another barrier to entry is the high fixed costs for warehouses, trucks, and labor, and economies of scale. New entrants cannot compete in price without economies of scale. These high capital requirements and market saturation make it extremely difficult for companies to enter the soft drink industry; therefore new entrants are not a strong competitive force (Murray, 2006c). Substitute products are those competitors that are not in the soft drink industry. Such substitutes for Coca-Cola products are bottled water, sports drinks, coffee, and tea. Bottled water and sports drinks are increasingly popular with the trend to be a more health conscious consumer. There are progressively more varieties in the water and sports drinks that appeal to different consumers tastes, but also appear healthier than soft drinks. In addition, coffee and tea are competitive substitutes because they provide caffeine. The consumers who purchase a lot of soft drinks may substitute coffee if they want to keep the caffeine and lose the sugar and carbonation. Specialty blend coffees are also becoming more popular with the increasing number of Starbucks stores that offer many different flavors to appeal to all consumer markets. It is also very cheap for consumers to switch to these substitutes making the threat of substitute products very strong (Datamonitor, 2005). Suppliers for the soft drink industry do not hold much competitive pressure. Suppliers to Coca-Cola are bottling equipment manufacturers and secondary packaging suppliers. Although Coca-Cola does not do any bottling, the company owns about 36% of Coca-Cola Enterprises which is the largest Coke bottler in the world (Murray, 2006a). Since Coca-Cola owns the majority of the bottler, that particular supplier does not hold much bargaining power. In terms of equipment manufacturers, the suppliers are generally providing the same

products. The number of equipment suppliers is not in short supply, so it is fairly easy for a company to switch suppliers. This takes away much of suppliers bargaining power. The buyers of the Coca-Cola and other soft drinks are mainly large grocers, discount stores, and restaurants. The soft drink companies distribute the beverages to these stores, for resale to the consumer. The bargaining power of the buyers is very evident and strong. Large grocers and discount stores buy large volumes of the soft drinks, allowing them to buy at lower prices. Restaurants have less bargaining power because they do not order a large volume. However, with the number of people are drinking less soft drinks, the bargaining power of buyers could start increasing due to decreasing buyer demand (Murray, 2006a). Porters Five Forces Model identifies the five forces of competition for any company. The recognition of the strength of these forces helps to see where Coca-Cola stands in the industry. Of the five forces, rivalry within the soft drink industry, especially from PepsiCo, is the greatest source of competition for Coca-Cola the soft drink industry is affected by macro environmental factors of the industry that will lead to change. First, the entry/exit of major firms is a trend in the industry that will likely lead to change. More specifically, merger and consolidation has been prevalent in the soft drinks market, causing some firms to exit the industry and then re-enter themselves. Several leading companies have been looking to drive revenue growth and improve market share through the increased economies of scale found through mergers and acquisitions. One specific example is how PepsiCo acquired Quaker Oats, who bought Gatorade which will help expand PepsiCos energy drink sector (Datamonitor, 2005). products is increasing. A second trend in the macro environment is globalization. With the growing use of the internet and other electronic technologies, global communication is rapidly increasing. This is 10 allowing firms to collaborate within the country market and expand into world markets. It has driven competition greatly as companies strive to be first-movers. Specifically, the global soft drink markets compound annual growth rate (CAGR) is expected to expand to 3.6% from 2004 to 2009 (Datamonitor, 2005). This trend has increased competition as firms diversification of

Third, changing societal concerns, attitudes, and lifestyles are important trends. In the United States and Europe, people are becoming more concerned with a healthy lifestyle. Consumer awareness of health problems arising from obesity and inactive lifestyles represent a serious risk to the carbonated drinks sector (Datamonitor, 2005, p. 15). The trend is causing the industrys business environment to change, as firms are differentiating their products in order to increase sales in a stagnant market. Thus, the long-term industry growth rate, the fourth trend, shows low growth in recent years. Since 2000, the CAGR is 1.5 per cent (Datamonitor, 2005). The low growth rates are of concern for soft drink companies, and several are creating new strategies to combat the low rates. This leads to the fifth trend of growing buyer preferences for differentiated products. Because soft drinks have been around since as early as 1798 (American Beverage Association, 2006), buyers want innovation with the products they buy. In todays globalizing society, being plain is not good enough. According to Barbara Murray (2006c), The key for all of these beverage companies is differentiation. The giants have new formulations and appearances. Whatever the strategy, be it a new color, flavor, or formula, companies will strive to create the greatest brand awareness in the minds of the consumer in the hopes of crowding out its competitors. Thus, the last trend, product innovation, is necessary to combat buyers need for a variety of tastes. Firms are already differentiating by taste, with the Coca-Cola Company as an example. The firms product line includes regular Coca-Cola, Diet Coke, Diet cherry Coke, 11cherry Coke, Vanilla Coke, Coca-Cola with Lime, Coca-Cola with lemon and many more (Murray, 2006a). Key factors for competitive success within the soft drink industry branch from the trends of the macro environment. Primarily, constant product innovation is imperative. A company must be able to recognize consumer wants and needs, while maintaining the ability to adjust with the changing market. They must keep up with the changing trends (Murray, 2006c). Another key factor is the size of the organization, especially in terms of market share. Large distributors have the ability to negotiate with stadiums, universities and school systems. Making them the exclusive supplier for a specified period of time. Additionally, they have the ability to commit to mass purchases that significantly lower their costs. They must

implement effective distribution channels to remain competitive. Taste of the product is also a key factor for success. Furthermore, established brand loyalty is a large aspect of the soft drink industry. Many consumers of carbonated beverages are extremely dedicated to a particular product, and rarely purchase other varieties. This stresses the importance of developing and maintaining a superior brand image. Price, however, is also a key factor because consumers without a strong brand preference will select the product with the most competitive price. Finally, global expansion is a vital factor in the success of a company within the soft drink industry. The United States has reached relative market saturation, requiring movement into the global industry to maintain growth (Datamonitor, 2005). Looking towards the future, the most important recommendation to Coca-Cola is continuing product innovation and expansion of their product line. The soft-drinks industry is fully saturated with competitors. Also, the industry is no longer expanding, and market share is actually decreasing as more consumers are looking to healthier options. By continually introducing new products, Coca-Cola will be able to increase their profits and allow the company to continue to grow. Also, having a diverse product line will make the corporation very stable, which is appealing to investors and creditors. A second recommendation would be to sustain or increase the global market share. Coca-Cola is very well-established globally, and is the global soft-drinks leader. This is very important to sustain because it is the source of the majority of their profits. If they lose global market share, their profits will decline dramatically. A final recommendation for Coca-Cola is to maintain and try to increase their brand loyalty. Diet Coke has the second highest brand loyalty of all the soft-drink competitors brands, and solid advertising campaigns will help maintain the brand loyalty. They can also strive to obtain higher brand loyalty in all other brands, not solely Diet Coke. The brand loyalty is important because it will allow Coca-Cola to sustain profits and maintain their market share. Objectives of the study

1. Gaining a better understanding on the market strategies and planning used by the company for marketing the product of Tropicana. 2. Comprehending how key trend affects the industry and Tropicana as one of PepsiCos products and how a consumer buying behavior affects the product. 3. To Understand and differentiate between the market segmentation, positioning and target audience in order to develop an effective marketing plan, and achieve the overall objectives of the company. 4. Examining the pricing plan designed for Tropicana and gives recommendations to help increase its sales size. 5. Understanding how and what are the tactics to kill Tropicanas strong competition is the main reason of this report. Research methodology Research Design Sample Area Population Sample Size Sample Method Research approach Data collected Sampling tool Statistical package Statistical Tools : : : : : : : : : : Descriptive study Chennai Pepsi Beverage consumers & retailers 250 Simple random sampling Survey method Primary data Structured questionnaire method SPSS 17. Percentage analysis, chi square, correlation.