A STUDY ON

Merchandising of Pepsi and Coke in Retail Market

In partial fulfillment of the requirements for the award of degree of MASTER O !USINESS ADMINISTRATION

SU!MITTED !Y"#

UNI$ERSITY RO%% NO&

SU!MITTED TO

INTRODU'TION
Today many new companies are coming in to existence and because of this the competition is also growing rapidly. Because of this reason they have to compete with their competitors constantly. n some industries the new companies may not come in to existence but the competition between the existing companies is growing more and more. The soft drink industry is mainly suffering with this particular problem. The Companies have to continuously compete with their competitors to get good market share and good profits. To face their competitors they have to know their position and the competitor!s position in the market. "or this# the Company!s will compare itself with their competitor that means they will do the comparative analysis in all aspects. $ tem by tem comparison of two or more comparable alternatives# processes# products# %ualifications# set of data and systems etc. in accounting for# for example changes in a financial statement!s items over several accounting period may be presented together to detect the emerging trends in the firm!s operations and result &&&&!usiness De(tionar)&(om

n the present scenario in the soft drink industry# the two gaint companies are fighting with each other. They are adopting and changing the strategies fre%uently. They are changing their schemes and offers according to their competitors. They have to analyse their competitor!s strategies and techni%ues comparing with their company!s strategies and techni%ues. The study on comparative 'nalysis of *epsi and 'o+e is very useful to Pepsi Company. The comparison is done on all aspects of the Company. "rom this analysis the company can know their position in the soft drinks market. Through this 'nalysis Pepsi Company can know the merits and demerits of the Company comparing with Coke Company. There are two famous beverage companies# Coke and Pepsi# have been competing dramatically and distributed the beverage market profit for several decades. n the free market# it is hard to exactly tell which one is the winner within the perfect competition# because both companies using the different styles of commercials and products to expand their markets. Personally is lowers. believe that Pepsi earned higher profit than Coke because Pepsi has better marketing strategies and the representative for its commercials and T.( 'ds cost choose Pepsi over Coke because Pepsi has fair marketing strategy that attracts all generation of people of all ages# whereas Coke targets mostly younger generation and tries to make an image of Pepsi as a )* cool drink# and Pepsi has made more People made more people to appreciate its value and product than Coke. +hen we compare the commercial 'ds of the two companies# Pepsi and Coke there is a ma,or thing that we can pick up from them# which is the representative of their products. n other words who are the representatives in both commercial 'ds- The companies try to establish an image to the public is that their

brands are closely related to our environment and culture in which we are living. This is the main secret of the 'ds of the .oft /rinks. .ometimes they directly hit the egos of the customers and to satisfy their ego they will show the solution# that is the product of the company. This should be taken care by the 'dvertising department. "or this reason they will use different locations of the country and different cultures of the country and different religions of the country in their 'dvertisements. They mean to say is we are close to your lives. This comparative analysis is totally done on the retailer!s opinion that means this comparative analysis is also helpful to know the belief and faith of the retailers on Pepsi Company. The total data for the study was collected based on the comparison between the two Companies# Pepsi and Coke. "rom this Pepsi Company can get the positive and negative points of their Company comparatively with Coke Company. /uring this study some retailers gave some suggestions to improve the %uality of the service 0supply1 and the image of the Company in the market and some people gave some complaints on the dealers of the company that they are not providing the sufficient information about the offers# service and the other things regarding the company. The company can use these suggestions for its improvement and by considering the complaints they can rectify the problems that they are facing from the company or the company dealers.

*E*SI ,RO-T.
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T)pe Cola Manufa(turer PepsiCo 'ountr) of origin )nited .tates

9CD8 0as BradLs /rink1 'ugust ;C# 9CDC 0as Pepsi& Introdu(ed Cola1 9D=9 0as Pepsi1 Coca&Cola RC Cola Related produ(ts rn Bru Cola Turka Big Cola -e/site pepsi.com

'o(a#'ola0s .istor)
nvented in May of 9CC= by /r. Fohn .tyth Pemberton

"irst glass sold for G cents at Facob!s Pharmacy in 'tlanta May ;D# 9CC=& first newspaper advertisement pronounced it $/elicious and RefreshingE 'pril 9CCC# /r. Pemberton sold off his interest in Coca&Cola and passed away two days after. 'pril 9CCC# 'sa Candler began buying up Coca&Cola shares By 9CD;# 'sa Candler was sole proprietor of Coca&Cola for a total investment of 7;#8::. Candler!s expertise in marketing led to massive growth in Coca&Cola. 9CD>& Coca&Cola opened its first syrup manufacturing plant outside 'tlanta in /allas Texas. Foseph Biedenharn became fist bottler of Coca&Cola in 9CD> Mid 9DC:s# Coca&Cola came back to its roots to concentrate on the soft drink industry. Coca&Cola adopted a product development effort with diet# caffeine&free# and citrus soft drinks introduced P3+2R'/2 and "ruitopia in early 9DD:s.

'o(a#'ola0s Mission
Mission + Commitment = Focus Focus + Action = Results
M Mission statementN $+e exist to create value for our share owners on a long&term basis by building a business that enhances The Coca&Cola Company!s trademarks. This is also our ultimate commitment. 's the world!s largest beverage company# we refresh that world. +e do this by developing superior soft drinks# both carbonated and non&carbonated# and profitable non&alcoholic beverage systems that create value for our Company# our bottling partners and our customers.E

'o(a#'ola0s O/1e(ti2es
M M M Coca&Cola!s first ob,ective is to maximiOe share owner value over time. MaximiOe long&term cash flow To ensure the strongest and most efficient production# distribution# and marketing systems possible

NEED OR T.E STUDY

n 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. "or 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. "rom 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. Through this study the investigator got the personal experience in the market field. 6e can implement his theoretical knowledge in to practice. 6e can know how the companies are competing with each other to sustain in the market in this tough competitive world. 6ence felt that there is a need for the study. 6owever# this type of study has not been carried out earlier by any investigator.

O!3E'TI$ES O T.E STUDY

9. To study the overview of Pepsi Company 0Pearl Bottling Pvt. 4td.1. ;. To know and compare the merchandising of Pepsi and Coke in retail outlets. 8. To identify the retailers opinion towards Pepsi products when compared to coke products.

>. To offer some finding and suggestions to the company for the improvement of its performance.

MET.ODO%O,Y
/ata which is re%uired for this study will be based on both primary and secondary data. *rimar) Data" Primary data will be collected from the retailers through a structured %uestionnaire. t includes the first hand information from the outlets. t can view as a survey. The %uestionnaire was especially designed to find out the market share of Pepsi and Coke Companies comparatively in these clusters. Through this information we can get the strengths and weaknesses of Pepsi and Coke Companies in those particular clusters. .ome of the retailers denied giving the details# then the investigator waited there with patience and collected all the data from that retailers. n the survey the investigator learned a lot and collected the useful information and also got good experience in the market field and came to know many things which are not in our books through this survey. The investigator almost covered all the retail outlets and collected the correct information. Se(ondar) Data" .econdary sources include the information collected from the annual reports# published and unpublished records of the company .various books and ,ournals were referred. nternet was also being used for collecting the relevant data which is not available in the books. .ome of the websites areN +++.pepsiindia.co.in +++.pepsico.com +++.indiainfoline.com +++.scribd.com +++.oppappers.com 'fter gathering the data from those two sources the data was analyOed and the important information was extracted for the use of study.

*rodu(t Mi4 -idth 5 *rodu(t line length for *epsi India *2t& %td& (ompared to 'o+e 'ompan)"

*rodu(t Mi4 -idth Soft drin+s *epsi Pepsi ? )p *rodu(t %ine %ength 3range Mirinda Mountain /ew 4emon Mirinda .lice /iet Pepsi 2vervess .oda 'o+e Coca&Cola .prite "anta Thumps )p 4imca MaaOa /iet Coke Ainely .oda '%uafina Ainely Drin+ing water *epsi 'o+e

@)2.T 3*' R2
NAME OF THE SHOP/OUTLET.. ADDRESS/ LOCATION.. TYPE OF OUTLET.

A} CONVENTION SHOP B} GROCERIES SHOP C} EATERIES

Q1} Which B !"# $% &$%' # i"(& )$* #+!, i" A} PEPSI B} COCA COLA C} OTHER D} MIQ.} WHICH BRAND OF COCA PROVIDES YOU BETTER FACILITY. A} PEPSI B} COCO COLA C} BOTH Q/} H$0 1!") c !'+& $% P+2&i )$* &+,, ! #!) A} 1 CRATE B} . CRATE C} / CRATES D} MORE THAN / Q3} 0hich c$12!")4& &i5"!5+ )$* h!6+ i" )$* $*',+' A} PEPSI B} COCA COLA C} BOTH D} NO SIGNAGE Q7} 0hich c$12!")4& 6i&i8c$$,+ )$* h!6+ i" )$* $*',+' A} PEPSI B} COCA COLA C} BOTH D} OWN E} MI-ED

Q9} 0hich 1+#i*1 !%%+c'& 'h+ &!,+& 1$&' A} T+,+6i&i$" B} M!5!:i"+&/ N+0&2!2+ . C} Di&2,!) D} W!,,2!2+ &/ h$! #i"5& Q;} D$ )$* 'hi"( !55 +&&i6+ !#6+ 'i&i"5 %* 'h+ i"c +!&+ 'h+ &!,+ 6$,*1+ $% 2+2&i A} )+& B} "$ Q<} 0h!' (i"# $% 2 $1$'i$"!, !c'i6i'i+& !%%+c'& 'h+ &!,+ 1$&',) A} % ++ =$'',+ &ch+1+ B} 2 i:+ C} Di&c$*"' !'+ D} $'h+ Q>} )$* +c$11+"#!'i$" %$ %* 'h+ &!,+& 1$&',)?.

Q1@} !") &*55+&'i$" %$ =+''+ 1+"' $% P+2&i .