EXECUTIVE SUMMARY

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 CocaCola 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 !P"s 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. #hatever strategy is followed
by one company, it is copied by the other.
$ample of to brands were selected on the basis of there uses and noticeability.
%ne of the selected brands is &%' brand in their respective product categories
the other one brand is close competitor of the &o ' brands. Total
sample of si(e of )** respondents selected on the basic of
convenience was surveyed which include consumers.
+ata was collected from secondary as well as primary sources. $tructure
,uestionnaire was use to collect primary data
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INTRODUCTION
In the modern urban culture consumption of soft drinks particularly among
younger generation has become very popular. $oft drinks in various flavors and
tastes are widely patroni(ed 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.
#ith 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 socalled competition for this product in the market is from different other
brands. -ass 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. The may introduce or initiate an aggressive promotion campaign or
announce a price reduction. The marketing man of the firm has to meet all these
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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.
In today"s highly competitive market place, three players have dominated the
industry/ The &ew 0ork based Pepsi Company Inc. The 1tlanta based coca cola
and 2.3. based Cadbury $chweppes.
Through the globe, these major players have been battling it out for a bigger
chunk of the ever 4growing soft drink market. &ow this battle has been evolved
up to India too with the arrival of these three giants.
$oft drink industry is on ama(ing growth/ ultimately these are only one person
who will determine their fortunes. The Indian consumer the real #ar to ,uench
his thirst has just begun.
3
i . exe
SOFT DRINK INDUSTRY: AN OVERVIEW
It all began in '556, when a tree legged brass kettle in 7ohn $tyth pemberton"s
backyard in 1tlanta was brewing the first P of marketing legeent 2naware the
pharmacist has given birth to a caramel colored syrup, which is now the chief
ingredient of the world"s favorite drink. The syrup combined with carbonated the
4
soft drink market. It is estimated that this drink is served more than one thousand
million times in a day.
8,ually oblivious to the historic value of his actions was 9rank Ix. :obinson, his
partner and book keeper. Pemberton ; :obinson laid the first foundation of this
beverage when an average nine drinks per day to begin with, upping volumes as
sales grew.
In '5<!, this beverage got into bottle, courtesy a candy merchant from
-ississippi. =y the '<>*"s Colas was a daily consumption item, stored in house
hold fridges. $oon were born other non cola variants of this product like orange
; ?emon.
&ow, the soft drink industry has been dominated by three major player 4 @'A The
&ew 0ork based Pepsi co. Inc.@)A The 1tlanta based coca cola co. @BA The united
3ingdom based Cadbury $chweppes.
Though out the glove these major players have been battling it. %ut for a bigger
chunk of the evergrowing cold drink market. &ow this battle has begun in India
too. India is now the part of cold drink war. Cone are days of :amesh Chauhan,
India"s one time cola king and his bouts of pistol shooting. 8xpect now to hear
the boon of cannons when the Coca Cola ; Pepsi co. battles it out for, as the
Dordon goes a bigger share of throat. =y buying
%ver local competition, the two 1merican Cola giants have cleared up the arena
and are packing all their power behind building the Indian franchisee of their
globe girdling brands. The huge amount invested in fracture has never been
seen before. =oth players seen an enormous potential in his country where
swigging a carbonated beverage is still considered a treat, virtually a luxury.
Conse,uently, by world standards India"s per capita consumption of cold drinks
as going by survey results is rock bottom, less than over &eighbors Pakistan ;
=angladesh, where it is four times as much.
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=ehind the hype, in an effort invisible to consumer Pepsi pumps in :s B***
crores @'<<!A to add muscle to its infrastructure in bottling and distribution. This
is apart from money 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 =anaras, Pepsi
outlets are on one side ; all the other colas put together on the other. #hile 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.
1part from numbers, Pepsi has made ,ualitative gains. The foremost is its
image. This image turnaround is no small achievements, considering that since it
was established in '<5<, taking the hardship route prior to liberali(ation and
weighed down by export commitments.
&ow, 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 fre,uent consumer promotion campaigns.
1s the mega event of this century has started, and the marketers are using this
event 4 world cup football, cricket events and many more other events.
?ike Pepsi, coke is picking up e,uity in its bottles to guarantee their financial
support/ one side coke is trying to increase its popularity through.
8at 9ood, enjoy 9ood. +rink only coca cola. 8at cricket, sleep cricket. +rink only
coca cola. 8at movies, sleep movies. +rink only coca cola.
%n the other side of coin Pepsi has introduced 1-IT1=7 =1C771& for
capturing the lemon market through -I:I&+1 4 ?emon with E(or ka jhatka dhere
se lageF.
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=ut no doubt" that 23 based Cadbury is also recogni(ing its presence. $o there
is a real crush in the soft drink market. with launch of the carbonated organi(e
drink Crush, few year ago in =anaras ., the first in a series of a launches ,
Cadbury $chweppes beverage India @C$=IA 71$ P?1&&8+G The world third
largest soft drink marketers all over the country.C$=I o wholly owned subsidiary
of the ?ondon based H 6.>)billion. Cadbury $chweppes is hoping that crush is
going well and well not suffer the same fate as the :s. 'I> crore Cadbury India"s
apple drink 1pella. C$=I is now with orange @crushA, and $chweppes soda in the
market.
1s orange drinks are the smallest of noncola categories that is :s. ''** crore
markets with '*J market share and cola heaving >*J is followed by ?emon
segment with )>J. The success of soft drink industry depends upon ! major
factors vi(.
1vailability
Kisibility
Cooling
:ange

AVAILABILITY
1vailability 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
Kisibility 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
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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
1s 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.
:ange availability means the availability of all flavors in all si(es.
8
COMPANY
PROFILE
9
COCA COLA COMPANY PROFILE
3eeping in view of tapping the Indian soft drink market and also developing soft
drinks as a drinking product among Indians. The CocaCola in India has setup an
independent organi(ations which is 7.C.C ; =.C.C with a capital of B>* 2.$.H
each by virtue of sellout decision of the passed managing director $h. $. C.
1ggarwal.
7industan CocaCola bottling @&#A Pvt. ?td. &ajibabad took the complete
possession of this plant, land, machinery, ; intellectuals on 9ebruary '!" '<<5
and since then 7.C.C, looking after all its affairs under company owned bottling
plant to establish integrated marketing system in the area.

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CORE BRANDS

Coca-Cola: +eveloped in a brass pot in '556, CocaCola is the most
recogni(ed and admired trademark around the globe. &ot to mention the best
selling soft drink in the world.

Sp!"#: In '<6', a citrusflavored drink made its 2.$ debut, using
E$prite =oy Eas inspiration for its name. This elf with silver hair and a big smile
was used in '<!*s advertising for CocaCola. $prite is now the fastest growing
major soft drink in 2.$ and the world"s most popular lemonlime soft drink.

Fa$"a : The name EfantaF was first registered as a trademark in Cermany in
'<!' ,when it was used for a few year for a soft drink created from available
materials and flavors . The name was then revived in '<>> in &aples, Italy,
when it was used for theGF fanta Eorange drink we know today. It is now the
trademark name for a line of flavored drinks around the world.
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D!#" co%#: The extension of the CocaCola name began in '<5) with the
introduction of diet coke @also called CocaCola light in some countriesA. +iet
coke ,uickly becomes the number 4 one selling low 4calorie soft drink in the
world.
FABULOUS FACTS ABOUT COCA-COLA
'. The world"s largest spherical CocaCola sign is in &agoya, Dapan a top
the dial 4 &agoya building in front of the &agoya railway station. The sing
is a double sphere constructed from more then !6 tone of steel, more
<!*meter of neon tubing, and more then, 5I< light bulbs. The outer
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shape features the CocaCola logo and contour bottle, while the inner
sphere portrays a comic scene with twinkling planets and stars.
). %ne of the world"s largest signs for CocaCola is located on a hill called
E8?71C71F in 1merica, Chile. It is !** feet wide and 'B' feet high and
is made from I*,***, )6 ounce bottles.
B. The first out door paint sign advertising CocaCola still exists. It was
painted in '5<! in Cartersville, Ceorgia.
!. CocaCola is one of the world"s most recogni(able trademarks
recogni(ed in countries that account for <5 percent of the world"s
population.
>. If all the CocaCola ever produced were in 5 ounce bottles. 1nd these
bottles were distributed to each person in the world. There would be 6I5
bottles or over !) gallons for each person.
6. If all the CocaCola ever produced were in 5 4 ounce bottles, placed side
by side and end to end to from a lane highway, it would wrap around the
earth 5) times.
I. If all the CocaCola ever produced were flowing over &iagara fall at its
normal rate of '*> million gallons per second instead of water, the falls
would flow for about a day and a half B5 hours and !6 minutes.
5. The largest representation of the world"s best known package '** foot
tall glass contour bottle is located at world of CocaCola, ?1$ K8C
MISSION:
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%ur roadmap starts with our mission, which is enduring. It declares our purpose
as a company and serves as the standard against which we weigh our actions
and decisions.
To refresh the world...
To inspire moment of optimism and happinessL
To create value and make a difference.
VISION:
%ur vision serves as the framework for our roadmap and guides every aspect of
our business by describing what we need to accomplish in order to continue
achieving sustainable, ,uality growth.
P#opl#: =e a great place to work where people are inspired to be the best
they can be.
Po"&ol!o: =ring to the world a portfolio of ,uality beverage brands that
anticipate and satisfy people"s desires and needs.
Pla$#": =e responsible citi(en that makes a difference by helping build
and support sustainable communities.
Po&!": -aximi(e longterm return to shareowners while being mindful of
our overall responsibilities.
Po'(c"!)!"*: =e a highly effective, lean and fastmoving organi(ation.
WINNING CULTURE:
%ur winning culture defines the attitudes and behaviors that will be re,uired of us
to make our )*)* vision a reality.
LIVE OUR VALUES:
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%ur values serve as a compass for our actions and describe how we behave in
the world.
L#a'#+,!p: The courage to shape a better future.
Colla-oa"!o$: ?everage collective genius.
I$"#.!"*: =e real.
Acco($"a-!l!"*: If it is to be, it"s up to me.
Pa++!o$: Committed in heart and mind.
D!)#+!"*: 1s inclusive as our brands.
/(al!"*: #hat we do, we do well.
FOCUS ON T0E MARKET:
9ocus on the needs of our consumers, customers and franchise partner.
Cet out into the market and listen, observe and learn.
Possess a world view.
9ocus on execution in marketplace every day.
=e insatiably curious.
WORK SMART:
1ct with urgency.
:emain responsive to change.
7ave the courage to change course when needed.
:emain constructively discontent.
#ork efficiently.
ACT LIKE OWNERS:
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=e accountable for our actions and inactions.
$teward system asset an focus on building values.
:eward our people for taking risks and finding better ways to solve
problems.
?earn from our outcomes 4 what worked and what didn"t.
BE T0E BRAND:
Inspire creativity, passion, optimism and fun.
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0ISTORY OF COCA-COLA
1o$ S"*", P#2-#"o$ first introduced the refreshing taste of CocaCola in
A"la$"a3 G#o.!a !" 4a+ Ma* 5675 when the pharmacist concocted caramel
colored syrup in three4legged brass kettle in his backyard. 7e first distributed the
new product by carrying CocaCola in a jug coin enjoys in a glass of CocaCola
at the soda fountain. #hether by design or accident, carbonated water was
teamed with the new syrup, producing a drink that was proclaimed E+elicious and
:efreshingF.
D8 P#2-#"o$9+ Pa"$# a$' -oo%%##p#3 M8 Fa$% Ro-!$+o$, suggested
the name and penned as ECocaColaF in the uni,ue flowing script that is still
famous worldwide today.
+r. Pemberton"s sold )> gallons of syrup, shipped in bright :ed wooden kegs.
:ed has been a distinctive color associated with the &o.' soft drink brand ever
since. 9or his efforts, +r. Pemberton grossed H >* and spent H IB.<6 on
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advertising, by '5<', 1tlanta chemist as a C.Canler had ac,uired complete
ownership of the CocaCola business.
7e purchases it from the +r.Pemberton family for H )B**. #ith in ! year his
merchandising flair helped to expand the consumption of CocaCola to over H)>
million.
Ro-#" W8 4oo'(&& -#co2# the president of the CocaCola company in '<)B
and his more than six decades of leadership took the business of commercial
success making CocaCola an institution the world over. CocaCola begins as a
never tonic, but candy merchant Doseph 1. =iedenharn of -ississippi was
looking for awry to serve refreshing beverages. 7e responded to this demand
began offering bottle CocaCola using syrup shipped from 1tlanta, during a hot
summer in '5<!.
'5<! L 1 modest start for a bold idea
In a candy store in Kicksburg, -ississippi, brisk sales of the new fountain
beverage called CocaCola impressed the storeMs owner, Doseph 1. =iedenharn.
7e began bottling CocaCola to sell, using a common glass bottle called a
7utchinson.
=iedenharn sent a case to 1sa Criggs Candler, who owned the Company.
Candler thanked him but took no action. %ne of his nephews already had urged
that CocaCola be bottled, but Candler focused on fountain sales.
'5<< L The first bottling agreement
Two young attorneys from Chattanooga, Tennessee believed they could build a
business around bottling CocaCola. In a meeting with Candler, =enjamin 9.
Thomas and Doseph =. #hitehead obtained exclusive rights to bottle CocaCola
across most of the 2nited $tates @specifically excluding KicksburgA for the sum
of one dollar. 1 third Chattanooga lawyer, Dohn T. ?upton, soon joined their
venture.
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'<**'<*< L :apid 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 ,uality. =y '<*<,
nearly !** CocaCola bottling plants were operating, most of them familyowned
businesses. $ome were open only during hotweather months when demand
was high.
'<)*s L =ottling overtakes fountain sales
as the '<)*s dawned, more than ',*** CocaCola bottlers were operating in the
2.$. Their ideas and (eal fueled steady growth. $ixbottle cartons were a huge
hit after their '<)B introduction. 1 few years later, opentop metal coolers became
the forerunners of automated vending machines. =y the end of the '<)*s, bottle
sales of CocaCola exceeded fountain sales.
'<)*s and B*s L International expansion
?ed by longtime Company leader :obert #. #oodruff, chief executive officer and
chairman of the =oard, the Company began a major push to establish bottling
operations outside the 2.$. Plants were opened in 9rance, Cuatemala,
7onduras, -exico, =elgium, Italy, Peru, $pain, 1ustralia and $outh 1frica. =y the
time #orld #ar II began, CocaCola was being bottled in !! countries.
'<!*s L Postwar growth
+uring the war, 6! bottling plants were set up around the world to supply the
troops. This followed an urgent re,uest for bottling e,uipment and materials from
Ceneral 8isenhowerMs base in &orth 1frica. -any of these wartime plants were
later converted to civilian use, permanently enlarging the bottling system and
accelerating the growth of the CompanyMs worldwide business.
'<6*s L &ew brands introduced
9ollowing 9antaN in the '<>*s, $priteN, -inute -aidN, 9rescaN and Ta=N
joined brand CocaCola in the '<6*s. -r. PibbN and -ello 0elloN was added in
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the '<I*s. The '<5*s brought diet CokeN and Cherry CokeN, followed by
P%#8:1+8N and +1$1&IN in the '<<*s. Today hundreds of other brands are
offered to meet consumer preferences in local markets around the world.
5:;<+ a$' 6<+ L Consolidation to serve customers
1s technology led to a global economy, the retailers who sold CocaCola merged
and evolved into international megachains. $uch customers re,uired a new
approach. In response, many small and mediumsi(e bottlers consolidated to
better serve giant international customers. The Company encouraged and
invested in a number of bottler consolidations to assure that its largest bottling
partners would have capacity to lead the system in working with global retailers.
'<<*s L &ew and growing markets
Political and economic changes opened vast markets that were closed or
underdeveloped for decades. 1fter the fall of the =erlin #all, the Company
invested heavily to build plants in 8astern 8urope. 1nd as the century closed,
more than H'.> billion was committed to new bottling facilities in 1frica.
)'st Century L
The CocaCola bottling system grew up with roots deeply planted in local
communities. This heritage serves the Company well today as people seek
brands that honor local identity and the distinctiveness of local markets. 1s was
true a century ago, strong locally based relationships between CocaCola
bottlers, customers and communities are the foundation on which the entire
business grows.
20
0ISTORY IN INDIA
Coca-Cola !$ I$'!a
CocaCola, the corporation nourishing the global community with the world"s
largest selling soft drink concentrates since '556, returned to India in '<<B after
a '6 year hiatus, giving new thumbs up to the Indian soft drink market. In the
same year, the Company took over ownership of the nation"s top softdrink brand
and bottling network. It"s no wondering our brands assumed an iconic status in
minds of world"s consumers.
A 0#al",* Go4", "o ",# I$'!a$ Eco$o2*
8ver since, CocaCola India has made significant investments to build and
continually consolidate its business in the country, including new production
facilities, waste water treatment plants, distribution systems, and marketing
channels.
CocaCola India is among the country"s top international investors, having
invested more than 2$H ' billion in India in the first decade, and further pledged
another 2$H'** million in )**B for its operations.
21
A P(# Co22!"2#$" "o ",# I$'!a$ Eco$o2*
The Company has shaken up the Indian carbonated drinks market greatly, giving
consumers the pleasure of worldclass drinks to fill up their hydration,
refreshment, and nutrition needs. It has alsobeen instrumental in giving an
exponential growth "o ",# country"s job listings.
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C#a"!$. E$o2o(+ 1o- Oppo"($!"!#+
#ith virtually all the goods and services re,uired to produce and market Coca
Cola being made in India, the business system of the Company directly employs
approximately 6,*** people, and indirectly creates employment for more than
')>,*** people in related industries through its vast procurement, supply, and
distribution system.
The Indian operations comprises of >* bottling operations, )> owned by the
Company, with another )> being owned by franchisees. That apart, a network of
)' contract packers manufactures a range of products for the Company.
%n the distribution front, '*tonne trucks 4 open bay threewheelers that can
navigate the narrow alleyways of Indian cities 4 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 8conomyCOCA-COLA COMPANY IN LUCKNOW
This is the one of the biggest leading company in beverage sector in ?ucknow
also. In the ?ucknow the coca cola company is a manufacturing company. They
are producing several brands like Thumps up, Coca Cola, $prite, ?imca, 9anta,
-aa(a and they have come with their new brand -inut -aid Pulpy %range.
Pulpy orange is the sixty year old brand in China but for India it is new. 1part
from this company also produces products like 3inley soda ;water and =ona,ua
new water brand.
D!+"!-("!o$ +*+"#2 o& Coca Cola L(c%$o4
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Brindavan Bottlers Pvt. Ltd.
Safedabad Barabanki
Brindavan Bottlers Pvt. Ltd.
Safedabad Barabanki


PROMISE BY COCA-COLA
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The CocaCola company exists to benefits and refreshes every one it touches.
The basic proposition of our business is simple, solid and timeless. #hen we
bring refreshment, value, joy and fun to our stakeholders then we successfully
nurture and protect our brand, particularly CocaCola. That is the key to fulfilling
our ultimate obligation to provide consistently attractive to the owner so four
business.
-ore then a billion times every day, thirsty people around the world reach for
CocaCola products for refreshment. They deserve the highest
Ouality 4 every time. %ur promise to deliver that ,uality is the most important
promise we make. and it involves a worldwide , yet distinctively local , network of
bottling partner , supplier , distributor and retailers whose success is paramount
to our own. %ur investment in local communities in over )** countries totals
billions of dollars in jobs, facilities, marketing, the purchase of local good and
services, and local business partnership. 1lways 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 .
BRANDS IN INDIA
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26

BRAND IN INDIAN ORIGIN
GOLD SPOT: Cold $pot was one of the three brands of carbonated soft
drink @$odaA started in India by Parle under the initiative of its founder :amesh
Chauhan in '<II after the exit of CocaCola and Pepsico from the Indian market.
Cold $pot was introduced along with Thums 2p and ?imca.
It was artificially flavoured and coloured orange. Parle sold Cold $pot along with
Thums 2p, ?imca,Citra and -aa(a to CocaCola in '<<B @which had just
relaunched in the Indian marketA, reportedly for H !* million. In spite of its wide
popularity, Cold $pot was withdrawn by Coke from the market in order to re
make space for CocaColaMs 9anta brand
Cold $pot had a catchy punch line PThe Qing Thing.P
7owever the brand has a good following in the rural areas especially in
-aharshatra, to keep the brand alive, Cold $pot is sold as a soda in these
markets.
27
1s per data available from the -inistry of 9ood Processing Industries of India
@-o9PIA, Cold $pot has a market share of )J among all soft drink companies
@Cola R &onCola drink -anufacturersA during the year )**<'*.
The ?os 1ngeles based band Coldspot is supposed to be named after this fi((y
drink. 1ccording to one of the interviews with $iddhartha 3hosla @the core
member of bandA, Coldspot was very popular back in India at the time.
LIMCA: ?imca is a lemon and lime flavoured carbonated soft drink made
primarily in India and certain parts of the 2.$.
In an interview in )**5, Ramesh Chauhan of Parle revealed that he had
approached the owners of +ukeMs ?emonade, re,uesting them to share the
formula for the drink with the promise not to market it in India, which was turned
down. Chauhan decided to come up with his own formula, which he launched
under the ?imca brand in '<II.
In '<<), when the Indian government allowed CocaCola to return for operations,
at the same time as it admitted Pepsi for the first time, CocaCola bought local
softdrink @sodaA brands, from Parle 1groowner -r :amesh Chauhan including
?imca, Thums 2p @a colalike drinkA, -aa(a @a mangojuice based
drinkA, Citra and Cold $pot @%range flavourA.
?ike most other sodas, ?imca is generally sold in glass bottles within India, which
are returned to the store or restaurant after the contents have been consumed.
The bottles are sent back to the manufacturer, washed and reused, because the
bottles are more expensive than the drink itself, and selling the drink in tin cans
and plastic bottles steps up its market price. 7owever, the drink is also sold in tin
cans and plastic bottles.
Prior to '<55 the original formula of ?imca contained =rominated vegetable oil
@=K%A. 1fter world wide reports of ill effects of =K% the use of =K1 in soft drinks
was banned in India. 1s a result of this ban the formula for ?imca was changed
and =K% was removed from the concentrate for ?imca.
?imca is marketed in )** ml and B** ml glass bottles with national maximum
retail prices of 5 Indian :upees @I&:A and '' I&:, respectively/ BB* ml cans
priced at '5 I&:, 6** ml plastic bottles priced at )> I&:, '.> liter P9amily PackP
plastic bottles at !> I&:, and ) liter PParty PackP plastic bottles priced at >> I&:.
In certain establishments such as cinemahalls, snackbars, and bakeries, ?imca
is available from sodafountains, in B>* ml paper glasses @tumblersA. Prices of
fountain ?imca vary.
?imca also publishes the Limca Book of Records, a record book similar to
the Guinness Book of Records, started originally by -r :amesh Chauhan.
28
The Limca Book of Records details feats, records and other uni,ue statistics
from an Indian perspective.
%ne of ?imcaMs original and very popular taglines was P?imca. ItMs veri veri ?ime ;
?emoni.P In India reigning top 7indi film actress and actors are generally chosen
as brandambassadors for the product.
MAA=A: -aa(a, launched in '<5! and ac,uired by the CocaCola company in
'<<B, is a non carbonated mango soft drink with a rich, juice ; natural mango
taste. -aa(a is a CocaCola fruit drink brand marketed in India and =angladesh,
the most popular drink being the mango variety, so much that over the years, the
-aa(a brand has become synonymous with -ango. Initially CocaCola had also
launched -aa(a in orange and pineapple variants, but these variants were
subse,uently dropped. CocaCola has recently relaunched these variants again
in the Indian market.
-ango drinks currently account for <*J of the fruit juice market in India. -aa(a
currently dominates the fruit drink category and competes with
PepsiMs $lice brand of mango drink and9rooti, manufactured by Parle 1gro.
#hile 9rooti was sold in small cartons, -aa(a and $lice were initially sold in
returnable bottles. 7owever, all brands are also now available in small cartons
and large P8T bottles. %f late, the Indian market is witnessing the entry of a large
number of small manufacturers producing only mango fruit drink.
-aa(a has a distinct pulpy taste as compared to 9rooti and tastes slightly
sweeter than $lice. -aa(a claims to contain mango pulp of the 1lphonso variety,
which is known as the P3ing of -angoesP in India
T0UMPS UPG T%+10 IT I$ T78 ?1:C8$T $8??I&C $%9T +:I&3 =:1&+ I&
I&+I1.
Thums 2p is known for its strong, fi((y taste and its confident, mature and
uni,uely masculine attitude. This brand clearly seeks to separate the men from
the boys. %utlet $tructure of the Coca Cola in India. %riginally introduced in
'<II, Thums 2p was ac,uired by The CocaCola company in '<<B.

29
GLOBAL MARKET S0ARE OF COCA-COLA
In )**<, the company generated revenues of HB' billion with H6.5 billion net
income. 1n increased consumer preference for healthier drinks has resulted in
slowing growth rates for sales of carbonate soft drink @abbreviated as C$+A,
which constitutes I5J of 3%"s sales. 3%"s profits are also veernuable to the
volatile costs for the raw materials used to make drinks such as the corn syrup
used as a sweetener, the aluminium used cans, and the plastic used bottles.
9urthermore, slowing consumer spending in coke"s large north 1merican market
compounds the challenges of increasing cost and a weak economic environment.
9inally, CocaCola earns approximately I>J of revenue from international sales,
exposing it to currency fluctuations, which are particularly adverse with a strong
2.$. dollar @2$+A.
+espite these challenges, CocaCola remained profitable. Through the nonC$+
market is growing ,uickly, the traditional C$+ market is still large in terms of both
revenue and volume and highly lucrative. The si(e and variety of 3%"s offerings
in the C$+ category, coupled with the unparalleled brand e,uity of CocaCola
trademark, has allowed 3% to maintain its share of this important market. 3% has
also responded to consumers" changing tastes with new, nonC$+ product
launches and ac,uisitions such that of Claceau in )**I. $trong international
growth has also more than offset a weak domestic market.
%n 9ebruary )>, CocaCola company announced its plan to buy CocaCola
enterprises @CC$A for H').B million. $ince spinning of CocaCola enterprises
@CC8A )! years ago, the soft drink market has changed dramatically with
consumers buying fewer soft drinks and more noncarbonated beverages, such
as Powerade and +asani water. 2nder the new deal, CocaCola company will
take control of the botteler"s &orth 1merica operations, giving the company
control over <*J of the total &orth 1merica volume. In return, CocaCola
30
enterprises will take over coke"s bottling operations in &orway and $weden,
becoming a 8uropeanfocused producer and distributor.
In -arch )*'*, CocaCola company entered into discussions to buy the :ussian
juice company, %1% &idan juices. The company is I>J owned by a private
e,uity firm in ?ondon and )>J by its :ussian founders and controls '!.>J of
:ussian juice market. If successfully the purchase would add to CocaCola"s
)*.>J market shares, passing Pepsi"s B*J market share. The :ussian juice
market is estimated to be HB.) billion dollars, and estimates of &idan"s purchase
price are between H>6*H6)* million.
In 1pril )*'*, CocaCola company agreed to pay +r Pepper $napple Croup
@+P$A HI'> million for the continued right to sell their products following the
company"s ac,uisition of CocaCola enterprises @CC8A. The deal covers with an
option to renew for an additional )* years.
PEPSICO
31
PepsiCo is one the largest companies in the 2.$. It figures amongst the largest
'> companies worldwide according to the number of employees hired. It has a
2.$. 9ortune rank of >*.The company profits for '<<I were H).'! billion on
revenues of H)*.<) billion and Pepsi is bottled in nearly '<* countries. PepsiCo
is a world leader in convenient snacks, foods and beverages with revenues of
more than H!B billion and over '<5,*** employees. 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 PepsiCola, 9rito?ay and
Pepsi 9ood 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 '>* countries across the globe. The
group has established for itself once of the strongest brands in various segments
of its operations.
32
The beverages segment primarily markets its Pepsi, +iet Pepsi, -ountain +ew
and other brands worldwide and I2P outside the 2.$. markets. These are
positioned in close competition with CocaCola Inc. of 2$1. 1 point which is
worth a mention is that CocaCola gets 5*J of its profits for International
operations while the same figure for PepsiCo stands at 6J. The segment is also
in the bottling plants and distribution facilities and also distributes the ready to
drink tea products of ?ipton in &orth 1merica. In a joint venture with orient spray
juice products PepsiCo also manufactures and distributes fruit juices.
The snack food division manufactures and distributes and markets chips and
other snacks worldwide. The international operations of this segment extend to
the markets of -exico, the 23 and Canada. 9rito?ay represents this segment of
PepsiCo.
The restaurant segment earlier primarily consists of the operations of the
worldwide Pi((a 7ut, Taco =ell and 39C chains. P9$. Pepsi company"s
restaurant distribution operation, supplies company owned and franchise
restaurants in the 2.$. The company ventured into restaurant business with Taco
=ell, 39C, Pi((a 7ut ended last year when they were spanned off from the
company. 1 packaged goods company comprised of PepsiCola Company and
9rito?ay 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.
33
PEPSICO IN INDIA
PepsiCo gained entry to India in '<55 by creating a joint venture with the Punjab
governmentowned Punjab 1gro Industrial Corporation @P1ICA and Koltas India
?imited. This joint venture marketed and sold ?ehar Pepsi until '<<', when the
use of foreign brands was allowed/ PepsiCo bought out its partners and ended
the joint venture in '<<!. %thers claim that firstly Pepsi was banned from import
in India, in '<I*, for having refused to release the list of its ingredients and in
'<<B, the ban was lifted, with Pepsi arriving on the market shortly afterwards.
These controversies are a reminder of PIndiaMs sometimes acrimonious
relationship with huge multinational companies.P Indeed, some argue that
PepsiCo and The CocaCola Company have Pbeen major targets in part because
they are wellknown foreign companies that draw plenty of attention.P
In )**B, the Centre for $cience and 8nvironment @C$8A, a nongovernmental
organi(ation in &ew +elhi, said aerated waters produced by soft drinks
manufacturers in India, including multinational giants PepsiCo and The Coca
Cola Company, contained toxins, including lindane, ++T, malathion and
34
chlorpyrifos S pesticides that can contribute to cancer, a breakdown of the
immune system and cause birth defects. Tested products included Coke, Pepsi,
I 2p, -iranda, 9anta, Thumps 2p, ?imca, and $prite. C$8 found that the Indian
produced PepsiMs soft drink products had B6 times the level of pesticide residues
permitted under 8uropean 2nion regulations/ Coca ColaMs B* times. C$8 said it
had tested the same products in the 2$ and found no such residues. 7owever,
this was the 8uropean standard for water, not for other drinks. &o law bans the
presence of pesticides in drinks in India.
The CocaCola Company and PepsiCo angrily denied allegations that their
products manufactured in India contained toxin levels far above the norms
permitted in the developed world. =ut an Indian parliamentary committee, in
)**!, backed up C$8Ms findings and a governmentappointed committee, is now
trying to develop the worldMs first pesticides standards for soft drinks. Coke and
PepsiCo opposed the move, arguing that lab tests arenMt reliable enough to
detect minute traces of pesticides in complex drinks.
1s of )**>, The CocaCola Company and PepsiCo together hold <>J market
share of softdrink sales in India. PepsiCo has also been accused by the
Puthussery panchayat in the Palakkad district in 3erala, India, of practicing
Pwater piracyP due to its role in exploitation of ground water resources resulting in
scarcity of drinking water for the panchayat residents, who have been pressuring
the government to close down the PepsiCo unit in the village.
In )**6, the C$8 again found that soda drinks, including both Pepsi and Coca
Cola, had high levels of pesticides in their drinks. =oth PepsiCo and The Coca
Cola Company maintain that their drinks are safe for consumption and have
published newspaper advertisements that say pesticide levels in their products
are less than those in other foods such as tea, fruit and dairy products. In the
Indian state of 3erala, sale and production of PepsiCola, along with other soft
drinks, was banned by the state government in )**6, but this was reversed by
35
the 3erala 7igh Court merely a month later. 9ive other Indian states have
announced partial bans on the drinks in schools, colleges and hospitals
Ba$' Fac"+
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 !) bottling plants in India, of which 'B are company
owned and )< are franchisee owned. In addition to this, PepsiCo"s 9rito ?ay
division has B stateoftheart 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.
B#)#a.#+
PepsiCo India"s expansive portfolio includes iconic refreshment beverages Pepsi,
I 2P, &imboo(, -iranda and -ountain +ew, in addition to low calorie options
36
such as +iet Pepsi, hydrating and nutritional beverages such as 1,uafina
drinking water, isotonic sports drinks Catorade, Tropicana'**J fruit juices, and
juice based
+rinks 4 Tropicana &ectars, Tropicana Twister and $lice. ?ocal brands 4 ?ehar
8vervess $oda, +ukes ?emonade and -angola add to the diverse range of
brands
Foo'+
PepsiCo"s food division, 9rito?ay, is the leader in the branded salty snack market
and all 9rito ?ay products are free of transfat and -$C. It manufactures ?ay"s
Potato Chips/ Cheetos extruded snacks, 2ncle Chips and traditional snacks
under the 3urkure and ?ehar brands. The company"s high fiber breakfast cereal,
Ouaker %ats, and low fat and roasted snack options enhance the healthful
choices available to consumers. 9rito ?ay"s core products, ?ay"s, 3urkure, 2ncle
Chipps and Cheetos are cooked in :ice =ran %il to significantly reduce saturated
fats and all of its products contain voluntary nutritional labeling on their packets
37
/UICK FACTS
PepsiCo established itMs business operations in India in '<5<
Invested more than 2$+ ' =illion since inception
#ell known and loved global brands that delight and nourish consumers

It provides direct and indirect employment to '>*,*** people in India
It has more than !) bottling plants in India, of which 'B are company
owned ; )< franchisee owned
B $tateoftheart food plants in Punjab, -aharashtra and #est =engal
PEPSI CO INDIA: A FORTUNE ><< COMPANY IN
INDIA
38
PepsiCo, which ranks among the world"s five largest food and beverage
companies with '6 brands, and its partners have invested more than 2$H
I** million in India building businesses, which today provide direct or
indirect employment to more than 6*,*** people. $ince Pepsi"s entry into
the Indian market in '<5<, several brands from its portfolio have become
established category leaders. =rand Pepsi is now the )nd biggest brand in
the country. PepsiCo"s portfolio of beverage brands in India includes the
flagship cola brand Pepsi/ +iet Pepsi/ two flavors of -irinda 4 %range and
?emon/ I2P/ -ountain +ew/ packaged drinking water 1,uafina/ variants
of the fruit drink brand $lice/ the '** per cent fruit juice brand Tropicana in
several variants and the world"s leading sports drink Catorade.
P#p+! - Y#, 0a! Yo($.!+"a$ M#! 1aa$
39
BRAND 0ISTORY
Pepsi is a hundred year old brand loved by over )** million people worldwide.
The largest single selling soft drink brand in India is the ubi,uitousMsocialiserMat
every occasion.
0oungistan loves it. )** million people worldwide love it. =ut 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.
'556, 2nited $tates of 1merica. Caleb =rad man, the man with a plan, got
on to formulate a blockbuster digestive drink and decided to call it =rad"s
drink. It was this doctor"s potion that was to become Pepsi Cola in '5<5,
and eventually, Pepsi in '<*B.
Pepsi has always played on the front foot and since its inception has come
out with revolutionary concepts like +iet, )? bottles, recyclable plastic cola
bottles and the enviable -y Can.
BRAND ADVANTAGE
Pepsi has become a friend to the youth and has led many youth cultures.
0oungsters over the generations have grown up with Pepsi and share an
emotional connect with it, unlike any other cola brand. =e it parties,
hangouts, or just another day at home, a day is never complete without
the fi(( of PepsiT
Pepsi, Cricket and =ollywood have been joined at the hip since the
beginning. $hah :ukh 3han, $achin Tendulkar, $aif 1li 3han, 1mitabh
=achchan, 3areena 3apoor, Priyanka Chopra, Kirender $ehwag, -. $.
+honi, Dohn 1braham, :anbir 3apoor and +eepika Padukone are a few
celebrities who will go any length for a chilled Pepsi.
The Pepsi -y Can is undoubtedly the most popular cola pack of all times.
It is not just a pack but a style statement for today"s youth.
40
PEPSI PRODUCTS IN INDIA
41




42
T0E RIVARLY BEGINS
Co%# Co2#+ "o I$'!a
CocaCola comes to India with fanfare in the fifties. 9or a number of days, The
7industan Times and other newspapers of &ew =anaras carried full page
advertisement showing a big boy in uniform with a softdrink crown as the cap.
There was no indication of the product. 1fter a few days, Coke was introduced. It
was an entirely new drink which fascinated people. It soon became the national
drink. 9or the first time, a softdrink was available from one corner of the country
to another. The person who brought CocaCola to India was the father of late
$ardar Charanjit $ingh, $ardar -ohan $ingh. 1 practical man -ohan $ingh
reali(ed that to populari(e CocaCola, and make it a best seller it was necessary
to Ecatch them young.F $o he focused on youngsters in the society.
The company reali(ed 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.
9ew products appears to be more similar than soft drinks, yet the Cola wars that
mark the competition between Coke and Pepsi show how even organi(ations
with highly similar product can be differentiated by their business strategies. Then
comes battles over the issue of bottle si(e standardi(ation. Coke the arch rival
tried to offering more Cola at a lower price. Pepsi which had some of its early
investment tied up in )>*ml bottles, went the fountain way. The Ceneral bottle
si(e freed has settled at B** ml. '** ml more than the pre -&C standard.
9ountain mix dispensers, carry home bottles, even '.>* plastic bottle with caps
good enough to keep them lying down and still preserve the fi((.
43
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 Ethe thing on display $ells more.F Coca
Cola is, finally, redoing the real thing to the replicate the success that it"s arch
rival, PepsiCo. 7as achieved with its fast and furious marketing. =ut to win them,
Coke is copying Pepsi.
MARKETING STATEGIES OF COKE AND PEPSI
44
a? PRODUCT
Coke was launched in India in 1gra, %ctober )!, in M<BM, soon after its
traditional all Indian launch of its Cola. 1t the sparking new bottling plants at
7athra, near 1gra. Coke was back with a bang after its exit in '<II.
Coke was planning to launch in next summer the orange drink, 9antawith
the clear lemon drink, sprite, following later in the year.
Coke already owns more brands than it will over need, since it has bought out
:amesh Chauhan. Coke just needs to juggle these brands around dextrously to
meet its objectives, to ensure that Pepsi does not gain market share in t Today,
CokeMs product line includes, CocaCola, Thumps 2p, 9anta, Cold $pot, -aa(a,
Citra, $prite, =isleri Club $oda and +iet Coke.
PACKAGING
CocaCola India ?imited @CCI?A has bottled its Cola drink in different si(es
and different packaging i.e., )** ml bottle, B** ml. =ottle, BB* ml. Cans, >** ml.
=ottle fountain Pepsi, and bottles of ' and ) litre.
PRODUCT POSITIONING
%ne important thing must be noticed that Thumps 2p is a strong brand in
western and southern India, while Coca Cola is strong in &orthern and
8astern India. #ith volumes of Thumps 2p being low in the capital, there are
likely chances of Coca Cola slashing the prices of Thumps 2p to :s. > and
continue to sell Coca Cola at the same rate. 1nalysts feel that this strategy may
help Coke since it has ) Cola brands in comparison to Pepsi which has just one.
Thumps 2p accounts for !*J of Coca Cola companyMs turn over, followed
by Coca Cola which has a )BJ share and ?imca which accounts for 'IJ of the
45
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 -r.
+onald short C8%, Coca Cola India, said that, P we will be absolutely comfortable
if Thumps 2p is &o. ' brand for us in India in the year )***. #e will sell
whatever consumers want us toP. 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 $oft +rinks Industry, and the
intense competition make it very difficult to change or alter the prices. The
various costs incurred by the individual companyMs are almost unavoidable.
These being the costs of concentrates, standard bottling operations, distributor
and bottlers commissions, distribution expenses and the promotional and
advertising expenditure @1s far as Coke is concerned, it had to incur a little more
than Pepsi as Pepsi paved its way to India in '<5< while Coke made a come
back in '<<B.A
Currently a B** ml. Coke bottle is available for :s. 6 to5 The BB* can was
initially available for :s. 'B and now, since the price has gave up to :s. '5 per
can. The prices of >** m, ' litre. 1nd )ltr being :s. '> :s. )B and :s. !*
respectively @according to the current surveyA.
+ating back to U<BM, when Pepsi hiked the price of Pepsi Cola from :s. >
to :s. 6 per )>* ml. bottle in some parts of the countryincluding 1gra. Coke
penetrated the market with price of :s. > for a B** ml. bottle, making it cheaper
by :s. ' and >* ml.
46
than Pepsi. CokeMs strategy at that time being able to expand the availability of
soft drinks even in rural India. CokeMs priority being to first increase the number
of drinks per drinker, and then the number of drinkers itself. Pepsi also tried this
but was trapped by a series of competitive price increase and changes in bottle
si(es by Parle. =ut the prices of soft drinks have shot up since PepsiMs arrival
and the current prices are being mentioned as under.
P!c# l!+"
Na2# Bo""l# S!@# MRP A!$ R+8?
Co%# P# Bo""l# B<< 2l 7
Co%# C<< 2l 5<
47
Co%# ><< 2l APla+"!c D Gla++? BB
Co%# B l!"# 7<
D!#" Co%# ACa$? CC< 2l Ca$ C>
Co%# ACa$? CC< 2l Ca$ C6
7owever, the trends may have been in the early M<*Ms, 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 in '<<!. 7ence, it had ready access to over ), **,*** retailer outlets and
6* 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 ), >*,*** outlets @in contrast with
PepsiMs ), **,***A. Coke has a greater advantage in terms of geographical
coverage.
=ut Coke has had problems with its bottlers as the re,uired profits for the
bottlers have not been forthcoming. This is more so because Coke has hiked the
price of its concentrate by :s. 5 9urther, CokeMs operations in India are '**J
48
9obs. &ow, it plans to convert then into C%=%s. 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. -r. $hort also reali(ed 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. 7owever, >*J of the industry unfortunately depends on
these middlemen. 1s of now, around '** agents are present in =ananas.
=ottlers of the ) multinationals have strongly felt the need to remove these
middlemen from the distribution system, but very little success has been
achieved in doing so.
'? PROMOTION
It must be remembered that soft drinks purchases are an Pimpulse buy low
involvement productsP which makes promotion and advertising an important
marketing tool. The ) 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 ,uality of the brand, its brand power @if at all
there isA since consumers make purchase decision based on their perceptions of
value i.e., of ,uality relative to price.
1ccording to Paul $tobart, 1dvertising encourages customers to recogni(e
the ,uality the company offers. Price promotions often produce shortterm sales
increases.
Coca Cola has entered new markets and also developing market economics @like
IndiaA with muchneeded jobs.
49
Coke attributes its success to bottlers, the Coca Cola system itself, i.e., its
executive committees, employees, =%+, company presidents but above all from
the consumer.
CokeMs red color catches attention easily and also the +iet Coke which it
introduced was taking the Cake, as Pepsi has not come out with this in India.
8ver since CokeMs entry in India in '<<B, Coke made a come back @after
,uitting in '<IIA, in %ctober )! in 1gra, the city was flooded by trucks, there
wheelers, tricycle cardsall with huge red Cokeembla(oned umbrellas. :etailers
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
50
T,# P#p+! Poc#++: +espite being a global brand, Pepsi has built its success on
meeting the Indian consumer"s needs, particularly in terms of making the brand
synchroni(e with locali(ed 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
campaignssuch as the +rink Pepsi, Cet $tuff scheme, which offers large
discounts on other products to Pepsibuyers as well as local.
T,# Co%# Cop*: Instead of creating a bond with the customers through small
but highimpact events, CocaCola chose to associate itself with national and
international mega events like the #orld Cup Cricket, '<<6, and world cup
football '<<5. =ut now coke is also entering into local actions. Coke is also trying
to make their brand synchroni(e with locali(ed events traditions and festivals.
CocaCola new tag line in this advertisement is E:eal shopping, real refresherF.
In this way Coke is copy Pepsi.
EMPOWERMENT
T,# P#p+! Poc#++: %nce of the strongest weapons in Pepsi"s armory is the
flexibility it has empowered its people with. 8very 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.
T,# Co%# Cop*: 9lexibility is the weapon that CocaCola, fettered as it is by the
need for approvals from 1tlanta for almost everything. In the past, this has shown
up in its stubborn insistence on junking the franchisee network it had ac,uired
51
from Parle/ in its dependence on its own feedback mechanism over that of its
bottlers/" and on its head,uartersled approach.
PRICE
T,# P#p+! poc#++: Pepsi has consistently wielded its pricing strategy as in
invitation to sample, aiming to turn trial into addiction.
It launched the >** ml bottle in '<<! at :s. 5 versus Thumps 2p"s :s. <, in 1pril,
'<<6, its '.> liters bottle followed Coke into the marketplace at :s. B* 4 :s > less
than Coke"s .=ut it couldn"t continue the lower price positioning for long.
T,# Co%# Cop*: Initially, coke carboncopied the strategy by introducing its
BB*ml cans in Danuary '<<6, at an invitation price of :s. '> before raising it to
:s. '5. =y this time, it had reali(ed that the CocaCola brand did not hold enough
attraction for customers to fork out a premium. The )**ml Coke, launched so far
in parts of eastern, western, and northernIndia, is priced at :s. >, lowering the
entrybarriers. Too really drive the market, as Coke wants to you must go down to
:s. B".
PEPSI VS8 COKE
EB6 BILLION TURNOVER E57
BILLION
CBF INT8 SALES AS FGOF
TOTAL SALES
;<F
RS8 >OO CRORES TOTAL INVESTMENT IN
INDIA
RS8 B>< C
RS8 C<< CRORES PROPOSED
INVESTMENTS
RS8 B3H<<C
52
BH<< NO8 OF EMPLOYEES 5H<
5C NO8 OF OWNED
BOTTLING PLANTS
NIL
56 NO8 OF FRANC0ISES >C
H<<< NO8 OF FOUNTAIN 5><<
N8A8 TOTAL INVESTMENT
BY BOTTLERS
R+ 5B> CR
7 NEW PLANTS
PLANNED
N8A8

PEPSI AND COKE MARKET S0ARE IN INDIA
53

Co2p#"!"!)# Co2pa!+o$+
I A')#"!+!$.
54
V CokeG HB!.! million @'<I>A to H)''.> million
@'<<BA
V PepsiG H)>.B million @'<I>A to H'!I.B
-illion @'<<BA
I D!+"!-("!o$
V Coke stronger in fountain. =ut Pepsi
I$ growing in supermarketsW
V Pricing
V &o differences

COLA WARS
Coca-Cola )D+ P#p+!
55
OVER A CENTURY OF COLA SLOGANS3 COMMERCIALS3
BLUNDERS3 AND COUPS
ThereMs little doubt that the most spirited and intense competition in the beverage
world is between CocaCola and Pepsi. These two 1merican companies long
ago took their battle worldwide, and although there are other colas in the market,
these giants occupy this highstakes 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 1merica has not become jaded about the cola wars.
The memorabilia, the jingles, the trivia all still popular. $o 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 8 8 8 8
CocaCola was invented and first marketed in '556, followed by Pepsi in '5<5.
CocaCola was named after the coca leaves and kola nuts Dohn Pemberton used
to make it, and Pepsi after the beneficial effects its creator, Caleb =rad ham,
claimed it had on dysPepsia. 9or many years, CocaCola had the cola market
cornered. Pepsi was a distant, no threatening contender. =ut 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.
ADVERTISING 0ISTORY J COMMERCIALS
Pepsi has definitely leaned towards the appeal of celebrities, popular music, and
young people in television commercials, while Coke relies more heavily on
images of happiness and togetherness, tradition, and nationalism, perpetually
trying to cash in on its original lead. In a simplified sense, you could sum up the
strategies as Coke: Old, Pepsi: New. In fact, as we will see, when CocaCola
tried something new, it was disaster.
56
The first maga(ine ad for CocaCola appeared in Munsey's in '<*).
1dvertisements began to appear on billboards, newspapers, and streetcars.
$oon there were serving trays with images of people enjoying CocaCola, and
glasses with the colaMs name on them. 1t this time, CocaCola and Pepsi were
served in drugstore soda fountains.
In '<*<, Pepsi used its first celebrity endorser, automobile race driver =arney
%ldfield, in newspaper ads. In '<)', Pepsi went bankrupt, but continued to
appear on the scene, although not nearly so successfully as CocaCola. In '<B',
Pepsi went bankrupt again, but the new owner, :oy -egargel, would hit upon an
idea that would finally give CocaCola some competition. In '<B!, he marketed
Pepsi in a ')ounce bottle for a nickel. 1t the time, CocaCola was sold in a 6
ounce bottle for ten cents. KoilaT Profits for Pepsi.
Pepsi racked up another first by airing the first radio jingle in '<B<. It was so
popular that it was played in jukeboxes and became a hit record CocaCola hit
the airwaves in '<!'.
In '<!6, inflation forced Pepsi to increase prices. 1nd in '<>*, Pepsi offered a
larger )6ounce bottle to court the young 1merican housewife.
In the '<6*Ms, the cola ad wars moved to television. CocaCola employed a host
of celebrity singers to promote the product, including Connie 9rancis , Tom
Dones, The &ew =eats, &ancy $inatra, and The $upremes. 1s we moved
through the years, both colas incorporated some of their best slogans @PPepsi
CenerationP and Pthe :eal ThingPA into subse,uent commercials.
In the '<I*s, market research showed that consumers preferred the taste of
Pepsi over Coke. The Pepsi Challenge is still being conducted today. =ut Coke
came up with what is arguably the best of all cola commercials, the '<I' IMd like
to buy the #orld coke ad.
57
This landmark was recalled in Christmas versions in '<5B and '<5!, and a '<<*
$uper =owl ad, which was enough to make some =aby =oomers weep with
nostalgia.
In the '<5*Ms, Pepsi lined up the celebrities, starting with late -ichael Dackson,
then -adonna, -ichael D. 9ox, =illy Crystal, ?ionel :itchie, Cloria $tefan, Doe
-ontana, and others. Coke signed on -ichael Dordan, &ew 3ids on the =lock,
1retha 9ranklin, 8lton Dohn, and Paula 1bdul.
In '<5>, responding to the pressure of the Pepsi Challenge taste tests, which
Pepsi always won, CocaCola decided to change its formula. =ill Cosby was the
pitchman. This move set off a shock wave across 1merica. Consumers angrily
demanded that the old formula be returned, and CocaCola responded three
months later with Classic Coke. 8ventually, &ew Coke ,uietly disappeared.
Pepsi, meanwhile, had its own flop, Crystal Pepsi, which was supposed to catch
the strange wave of the times when everything colorless was clean and desirable
@Qima, bottled waterA. 1nd then there was Pepsi ?ite with the lemony flavor and
one calorie, introduced in '<I>. :emember that oneW 1pparently they didnMt
expect us to because later they gave us Pepsi %ne, using the same concept, but
a completely different taste. 1nd, extending the idea even further, we are now
getting Pepsi Twist, a new product with a twist of lemon flavor.
In '<<', :ay Charles sang, P0ou got the right one baby, uhhuhTP 1lso in the
'<<*s, Cindy Crawford and the $pice Cirls pitched Pepsi. 1nd then Pepsi aired
commercials featuring the aggravating little girl @7alide 8isenbergA with her
troubling male voice.
In the new century, both colas continue to battle it out on the television screen.
1nd celebrities continue to be important promoters. :ecently, Pepsi has had
commercials by =ob +ole and 9aith 7ill, among others.
58
SLOGANS
ItMs clear in looking at the slogans over the years that Coke and Pepsi have very
different targeting strategies. Coke is touting itself as the original, the authentic,
and appealing to a sense of tradition, positioning itself as an integral part of daily
1merican life. Pepsi, on the other hand, is promoting itself as something new,
59
young, and hip, which seems a little odd after over '** years. =ut Coke was first,
after all. Pepsi has always targeted the youth market more aggressively than
Coke.
COCA-COLA
'556 +rink CocaCola
'<*! CocaCola $atisfies
'<*! +elicious and :efreshing
'<*> CocaCola :evives and $ustains
'<*> Cood 1ll the #ay +own
'<*6 The +rink of Ouality
'<*6 The Creat &ational Temperance
'<*I +elicious CocaCola, $ustains, :efreshes, Invigorates
'<*I Cooling . . . :efreshing . . . +elicious
'<*5 $parkling 7armless as #ater, and Crisp as 9rost
'<*< +elicious, #holesome, :efreshing
'<'* It $atisfies
'<'* Ouenches Thirst as &othing 8lse Can
'<'' Its Time to +rink CocaCola
'<'' :eal $atisfaction in 8very Class
'<') +emand the Cenuine :efuse $ubstitutes
'<'B The =est =everage under the $un
'<'B 1 #elcome 1ddition to 1ny Party 1nytime 1nywhere
'<'! 8xhilarating, :efreshing
'<'! +emand the Cenuine by 9ull &ame
'<'! Pure and #holesome
'<'6 Dust %ne Class #ill Tell 0ou
'<'I Three -illion 1 +ay
'<'< Ouality Tells the +ifference
'<)* +rink CocaCola with $oda
60
'<)) Thirst 3nows &o $eason
'<)) Thirst CanMt =e +enied
'<)) Thirst :eminds 0ou +rink CocaCola
'<)B :efresh 0ourself
'<)! Pause and :efresh 0ourself
'<)> $ix -illion 1 +ay
'<)> The $ociable +rink
'<)6 $top at the :ed $ign
'<)I 1round the Corner from 1nywhere
'<)5 1 Pure +rink of &atural 9lavors
'<)< The Pause that :efreshes
'<B* -eet -e at the $oda 9ountain
'<B) IceCold $unshine
'<BB +onMt #ear a Tired, Thirsty 9ace
'<B! Carry a $mile =ack to #ork
'<B> 1ll Trails ?ead to IceCold CocaCola
'<B6 #hat :efreshment %ught to =e
'<B6 The :efreshing Thing to +o
'<BI 1mericaMs 9avorite -oment
'<BI $o 8asy to $erve and $o Inexpensive
'<B5 The =est 9riend Thirst 8ver 7ad
'<B5 Pure $unlight
'<B5 1nytime is the :ight Time to Pause and :efresh
'<B< CocaCola Coes 1long
'<B< -ake ?unch Time :efreshment Time
'<B< -akes Travel -ore Pleasant
'<B< The +rink 8verybody 3nows
'<B< Thirst $tops 7ere
'<!* =ring in 0our Thirst and Co 1way #ithout It
'<!' Completely :efreshing
61
'<!) :efreshment That CanMt =e +uplicated
'<!) #hoever 0ou 1re, #hatever 0ou +o, #herever 0ou -ay =e, #hen 0ou
Think of :efreshment, Think of IceCold CocaCola.
'<!B The %nly Thing like CocaCola is CocaCola Itself. ItMs the :eal Thing
'<!B 1 Taste 1ll Its %wn
'<!B That 8xtra $omething
'<!! 7ow 1bout a Coke
'<!> Passport to :efreshment
'<!> #henever 0ou 7ear P7ave a Coke,P 0ou 7ear the Koice of 1merica
'<!I Coke 3nows &o $eason
'<!I $erving CocaCola $erves 7ospitality
'<!5 #here ThereMs Coke, ThereMs 7ospitality
'<!< CocaCola . . . 1long the 7ighway to 1nywhere
'<>* 7elp 0ourself to :efreshment
'<>' Cood 9ood and CocaCola Dust &aturally Co Together
'<>) #hat 0ou #ant Is a Coke
'<>B +ependable as $unrise
'<>! 9or People on the Co
'<>> 1mericaMs Preferred Taste
'<>6 CocaCola -aking Cood Things Taste =etter
'<>6 9eel the +ifference
'<>I $ign of a Cood Taste
'<>5 The Cold, Crisp Taste of Coke
'<>< =e :eally :efreshed
'<6* :elax #ith Coke
'<6' Coke and 9ood :efreshing &ew 9eeling
'<6) CocaCola :efreshes 0ou =est
'<6B Things Co =etter #ith Coke
'<6> $omething -ore Than a $oft +rink
'<66 Coke . . . 1fter Coke . . . 1fter Coke
'<I* Its the :eal Thing
62
'<I' IMd like to buy the #orld a Coke '<I! ?ook 2p, 1merica
'<I6 Coke 1dds ?ife
'<I< 7ave a Coke and a $mile
'<5) Coke Is ItT
'<5! Dust 9or the Taste of It @+iet CokeA
'<5> Dust 9or the 9ree of It @Caffeine 9ree CokeA
'<5> #eMve Cot a Taste 9or 0ou @&ew CokeA
'<5> 1mericaMs :eal Choice @CocaCola ClassicA
'<56 Catch the #ave @&ew CokeA
'<56 :ed, #hite and 0ou @CocaCola ClassicA
'<5I 0ou CanMt =eat the :eal Thing
'<5< CanMt =eat the 9eeling
'<<* CanMt =eat the :eal Thing
'<<B 1lways CocaCola
'<<B Taste it 1ll
)*** 8njoy.
)**' ?ife tastes good. @also used in the 23A
)**B :eal.
)**> -ake It :eal.
)**6 The Coke $ide of ?ife @used also in the 23A
)**I ?ive on the Coke $ide of ?ife @also used in the 23A
)**5 ?ove it light @also used in the 23A
)**< %pen 7appiness
)*'* Twist The Cap To :efreshment
)*'' ?ife =egins 7ere
)*') %pen 7appiness
PEPSI-COLA
'<*B 8xhilarating, Invigorating, 1ids +igestion
'<*I %riginal Pure 9ood +rink
63
'<*< +elicious and 7ealthful
'<'> 9or 1ll Thirsts PepsiCola
'<'< PepsiCola It -akes 0ou $cintillate
'<)* +rink Pepsi Cola. It will satisfy you.
'<)5 Peps 0ou 2pT
'<B) $parkling, +elicious
'<B! :efreshing and 7ealthful
'<B< Twice 1s -uch 9or 1 &ickel Too
'<!B =igger +rink, =etter Taste
'<!< #hy take less when PepsiMs bestW
'<>* -ore =ounce to the %unce
'<>* The ?ight :efreshment
'<>! :efreshing #ithout 9illing
'<>5 =e sociable, have a Pepsi
'<6' &ow ItMs Pepsi, 9or Those #ho Think 0oung
'<6B Come 1liveT 0ouMre In the Pepsi Ceneration
'<6I Taste That =eats the %thers Cold
'<6I Pepsi Pours It %n
'<6< 0ouMve Cot a ?ot to ?ive and PepsiMs Cot a ?ot to Cive '<IB Doin the
Pepsi People 9eelinM 9ree
'<I> 7ave a Pepsi +ay
'<I5 Catch That Pepsi $pirit
'<5' PepsiMs Cot 0our Taste 9or ?ifeT
'<5B Pepsi &owT
'<5! Pepsi, the Choice of a &ew Ceneration
'<<) Cotta 7ave It
'<<B =e 0oung, 7ave 9un, +rink Pepsi'<<> &othing 8lse is a Pepsi
'<<I Ceneration &ext
'<<5 $ame Creat Taste '<<<
64
The Doy of Cola
)*** The Doy of Pepsi
)**B Pepsi. ItMs the Cola
)***)**BG P1a(adi dil kiP @7indi meaning P9reedom of the 7eartPA@IndiaA
)**BG PItMs the ColaP.P+are for -oreP @Pepsi CommercialA
)**B)**>G P0eh Pyas 7ai =adiP @7indi meaning PThis thirst is too muchPA @IndiaA
)**>)**6G P1n ice cold Pepsi. ItMs better than sexTP
)**6)**IG P#hy 0ou +oggingM meP.PTaste the one thatMs forever youngP
)**I)**5G P-ore 7appyP.PTaste the once thatMs forever youngP
)**5G P0eh 7ai 0oungistan -eri DaanTP 7indi meaning PThis is the 0oung era my
dearP @India and PakistanA
)**5G PPepsi $tuffP $uper =owl Commercial
)**5G PPepsi is X'P TK commercial
)**5G PPepsify karo gaiTP Commercial @7indi meaning P#anna PepsifyTPA
)**5)**<G P$omething for 8veryone.P
)**<G P:efresh everythingP and @during many commercialsA P8very Ceneration
:efreshes the #orldP
)*'*G P8very Pepsi :efreshes The #orldP
)*''G P$ummer Time Is Pepsi TimeP
65
)*')G P#here thereMs Pepsi, thereMs musicP
)*')G P?ive 9or &owP
)*')G PChange The CameP
66
CELEBRITIES PLAYING PART IN TO T0E SALES
PROMOTION OF T0E PRODUCT:



CELEBRITIES OF PEPSI:


AMITAB0 BAC00AN
S0A0RUK0 K0AN
PRIETY =INTA
SAC0IN TENDULKAR
SAIF ALI K0AN
SOURAV GANGULY
RA0UL DRAVID
MO0D8 KAIF
=A0EER K0AN
0ARB0A1AN SING0
YUVRA1 SING0
RANBIR KAPOOR
VIND0U DARA SUNG1
DEEPIKA PADUKONE
SURES0 RAINA
VIRAT K0OLI
VIRENDER SE0WAG
D0ONI
UDITA GOSWAMI
1AC/UELINE




CELEBRITIES OF COKE:


SALMAN K0AN
AIS0WARYA RAI
AAMIR K0AN
VIVEK OBEROI
BIPAS0A BASU
AKS0AY KUMAR
IMRAN K0AN
KALKI KOEC0LIN

67
P#p+! ) Coca-Cola 4a "($+ ,o"
The ongoing cola war between global rivals Pepsi and CocaCola has taken a
weird twist in India with the former dragging the latter to court. The chargeG Coca
Cola has snatched employees, bottlers, and agents, all of whom are bound to
Pepsi by a contract.
Pepsi has charged Coke with having entered into a conspiracy to disrupt its
business operations by inducing key employees and associates to break existing
contracts illegally.
Pepsi has sought a permanent injunction and an ex parte order against coke,
restraining it from taking away PepsiMs employees and business associates.
Pepsi has also reserved the right to seek financial damages from Coke at a later
date if necessary.
Pepsi has claimed that a do(en middlelevel managers and three territory
managers broke their contracts with Pepsi to join Coke in recent months, while
during the last year and half, seven managers ,uit Pepsi to join CocaCola.
Dustice C - &air of the +elhi high court on 1pril 'I issued notices and summons
to CocaCola and '> others for -ay 6. 7owever, Dustice &ayar refused to grant
the ex parte injunction sought by Pepsi India to stop the alleged inducements by
Coke in offering employment to PepsiMs employees while the suit was pending in
court.
%n behalf of Pepsi, 1shok +esai and 1run Daitley contended that CocaCola had
been Prattled by the huge success of Pepsi in India entered into a conspiracy
during the last six months to cause loss and damage to PepsiMs business
interests by adopting unfair and illegal means.P
68
It added that CocaCola had approached many key managers and had
successfully lured a commercial manager of its bottling business Caurav +uggal,
and a manager in $urat $ailesh Doshi, besides others.
Pepsi charged that while initially these approaches were sporadic, over the last
six months it is clear that CocaCola has changed its strategy and has decided to
consciously target and approach key employees of Pepsi at various locations in
India.
The company has alleged that in most cases, the employees have not been
given time to adhere to the <*day notice period and the oneyear confidentiality
agreement. The latter deal bars employees joining its rivals for at least a year.
+esai claimed CokeMs actions would directly harm the business interests of
Pepsi, which had invested over HB** million in the country in establishing
business infrastructure.
In its defense, Coke is expected to seek relief in the Indian Constitution which
states that there can be no restriction on the movement of labor. =esides, any
effort by a company to restrict its employees from joining other companies might
fall foul of the -onopolies and :estrictive Trade Practices 1ct as an unfair trade
practice.
Pepsi has cited the instance of Coke snapping up cricketer Davagal $rinath in
spite of the latter signing a contract with PepsiMs sports consultant, )'st Century
-edia. 7owever, media reports, ,uoting sources, said that $rinathMs contract had
been only in the verbal stage.
$imilarly, Pepsi has charged Coke with inducing the =oard of Control for Cricket
in India to give the sponsorship of the recently concluded Pepsi Triangular
Cricket $eries to Coke, as acknowledged in the =CCI submission before the
=ombay high court, even while a contract was signed with Pepsi.
69
Pepsi has listed the case of Coke trying to induce its music consultant +&1
&etworks Private ?td, which organi(ed the 0anni show, to snap its ties with Pepsi
and join Coke.
Incidentally, in results announced for the first three months of the year, Pepsi has
swept CocaCola aside. Pepsi has reported a growth of )I per cent compared to
CokeMs )' per cent during the same period. In the first three months of last year,
Pepsi grew by '5 per cent only.
CocaCola India chief executive +onald $hort had announced that Coke would
grow by at least )* per cent for the whole of '<<5. CocaCola, along with the
Parle brands it ac,uired when it came into India Thums 2p, ?imca, and Cold
$pot continue to dominate India with a >> per cent market share to PepsiMs !B
per cent. =ut in the cola segment, Coke comes a poor third after Thumps 2p and
Pepsi.
The current summer season is the most important for the cola giants, with
consumption at its peak.
70
BATTLE OF T0E BEVERAGES
71
PEPSI IS NOT AS PRICEY
:egardless of which soda you like better though, Pepsi seems the better value
than Coke right now. Coke is trading at a nearly )* percent premium to Pepsi
based on )**) P.8s even though the two companiesM earnings growth rates are
nearly identical. @PepsiMs are actually a shade higher.A
1nd when you look at revenues, the gap is even more dramatic. Coke is trading
at I time"s estimated )**) sales while Pepsi is trading at B.> times )**) revenue
estimates. =oth companies are expected to post slight declines in sales this year
and an increase of about ! percent in )**B. +ue to this disparity in valuation, Deff
3anter, an analyst with Prudential $ecurities, says he has a PbuyM rating on Pepsi
and PholdP on Coke. Prudential does not do investment banking.
To be sure, Coke is still the market share leader in soft drinks. %ne of the main
reasons the stock has outperformed Pepsi this year was because it reported a
better than expected gain in unit volume in the first ,uarter. 1nd the company has
taken steps to cement its carbonated beverage lead as well gain ground in the
bottled water market. @Coke and Pepsi both have their own brands of water,
+asani and 1,uafina, respectively.A
%n Tuesday, Coke announced that it was ac,uiring the $eagramMs line of mixers,
tonic, ginger ale and selt(er from +iageo and per nod :ichard. 1nd last month,
Coke entered into an agreement with Croup +anone to distribute 8vian bottled
water in &orth 1merica.

72
So2# p#"@#l+ 4!", ",a" +o'aK
=ut while Coke relies solely on beverages for growth, another factor in PepsiMs
favor is its diversity. P#hat attracts me to Pepsi is I have more faith in their ability
to grow earnings. &ot only are they successful on the beverage side but they are
successful with salty snack foods,P says Crit Thomas, director of growth e,uity
for &ational City Investment -anagement Co., the sub advisor for 1rmada
9unds. 1s of -arch B', Pepsi was the seventhlargest holding in the 1rmada Tax
-anaged 8,uity 9und and the tenthlargest holding in the 1rmada 8,uity Crowth
9und.
In fact, PepsiMs carbonated beverages are not even the biggest generator of sales
and earnings for the company. PepsiMs 9rito?ay brand of snack foods, which
include 9ritos, +oritos and :old Cold, accounted for 6'.) percent of revenue and
6>.B percent of operating profits in the first ,uarter.
PepsiMs soft drink business made up '< percent of sales and )B.) percent of
operating profit. Pepsi also owns Catorade and Ouaker 9oods, having ac,uired
Ouaker %ats last year.
%ne potential risk for both Pepsi and Coke is the economy. &o, not if it goes back
into a recession. If the economy continues to improve, the stocks could fall victim
to what is known as sector rotation, the selling of defensive companies like food
and beverages in order to buy more economically sensitive companies in the
financial services and technology sectors. To that end, shares of Pepsi and Coke
fell slightly on #ednesday during the Ciscoinduced market rally.
$till, Thomas says signs that the dollar is starting to weaken compared to other
currencies should prop up both stocks. ThatMs because a weaker dollar helps
boost the profits of international subsidiaries, since profits made in a foreign
currency are converted back to dollars. The majority of CokeMs sales are from its
73
international operations, with just B5 percent of revenue coming from the 2.$.
last year. Pepsi is not as big globally but currency fluctuations are still a factor, as
international sales accounted for )< percent of revenue in )**'.
74
OB1ECTIVES OF T0E 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 offer some finding and suggestions to the company for the
improvement of its performance.
Preference of soft drink among customers
1nalysis of rivalry among Pepsi and CocaCola
75
RESEARC0
MET0ODOLOGY
76
RESEARC0 MET0ODOLOGY

:esearch in common parlance refers to a search for knowledge. %ne can also
define research as a scientific and systematic search for pertinent information on
a specific topic. In fact, research is an art of scientific investigation. The advance
learner"s +ictionary of Current 8nglish lays down the meaning of research as Ea
careful investigation or in,uiry specially through search for new facts in any
branch of knowledge.F :edman and -ory define research as a Esystemati(ed
effort to gain new knowledge.F $ome people consider research as a movement, a
movement from the known to the unknown. It is actually a voyage of discovery.
This in,uisitiveness is the mother of all knowledge and the method, which man
employs for obtaining the knowledge of whatever the unknown, can be termed as
research.
:esearch is an academic activity and as such the term should be used in a
technical sense. 1ccording to Clifford #oody research comprises defining and
redefining problems, formulating hypothesis or suggested solutions/ collecting,
organising and evaluating data/ making deductions andresearch conclusions/
and at last carefully testing the conclusions to determine whether they fit the
formulating hypothesis.
+.$lesinger and -. $tephenson in the 8ncyclopaedia of $ocial $ciences define
research as Ethe manipulation of things, concepts or symbols for the purpose of
generalising to extend, correct or verify knowledge, whether that knowledge aids
in construction of theory or in the practice of an art.F :esearch is, thus, an
original contribution to the existing stock of knowledge making for its
advancement. It is the persuit of truth with the help of study, observation,
comparison and experiment. In short, the search for knowledge through
objectives and systematic method of finding solution to a problem is research.
The systematic approach concerning generalisation and the formulation of a
77
theory is also research. 1s such the term Uresearch" refers to the systematic
method consisting of enunciating the problem, formulating a hypothesis,
collecting the facts or data, analysing the facts and reaching certain conclusions
either in the form of solutions@sA towards the concerned problem or in certain
generali(ations for some theoretical formulation.
The present project work aims to take the retailers with
response with respect to coke product and it distribution, to get the re,uired data,
a survey has been carried out in lucknow.
RESEARC0 OB1ECTIVES : Competitive analysis of soft drink as CocaCola
and Pepsico.
SURVEY PROCEDURE : Personal interview method
DEVELOPING RESEARC0 PLAN :
$ample universe G lucknow
$ample unit G city market
$ample si(e G '** outlets
RESEARC0 DESIGN
The formidable problem that follows the task of defining the research problem is
the preparation of the design of the research project, popularly known as the
Eresearch designF. +ecisions regarding what, where, when, how much, by what
means concerning an in,uiry or a research study constitute a research design. E1
research design is the arrangement of the conditions for collection and analysis
of data in a manner that aims to combine relevance to the research purpose with
economy in procedure.F In fact, the research design is the conceptual structure
within which research is conduct/ it constitutes the blueprint for the collection,
measurement and analysis of data. 1s such the design includes an outline of
what the researcher will do from writing the hypothesis and its operational
78
implications to the final analysis of data. -ore explicitly, the desing decisions
happen to be in respect ofG
#hat is the study aboutW
#hy is the study being madeW
#here will the study be carried outW
#hat type of data is re,uiredW
#here can the re,uired data be foundW
#hat periods of time will the study includeW
#hat will be sample designW
#hat techni,ues of data collection will be usedW
7ow will the data be analysedW
In what style will the report be preparedW
3eeping in view the above stated design decisions, one may split the
overall research design into the following partsG
aA The sampling design which deals with the method of selecting items to
be observed for the given study/
bA The observational design which relates to the conditions under which
the observations are to be made/
cA The statistical design which concerns with the ,uestion of how many
items are to be observed and how the information and data gathered are
to be analysed/ and
dA The operational design which deals which deals with the techni,ues by
which the procedures specified in the sampling, statistical and
observational designs can be carried out.
TYPE OF RESEARC0 USED
D#+c!p"!)# type of research is been used which includes surveys and fact
finding en,uiries of different kinds. The major purpose of the statue of affairs as it
exists at present. The main characteristic of this method is that the researcher
79
has no control over the variables/ he can only report what has happened or what
is happening.
DATA SOURCE
+ata was been collected from both the primary as well as secondary source.
'. P!2a* 'a"a: Primary research consists of the collection of original
primary data. It can be accomplished through various methods, including
,uestionnaires and telephone interviews in market research, or
experiments and direct observations in the physical sciences, amongst
others.
The methods that have been used to collect the primary data areG
Ouestionnaire.
Personal interview.
). S#co$'a* 'a"a: $econdary data, is data collected by someone other
than the user. Common sources of secondary data for social science
include censuses, organisational records and data collected through
,ualitative methodologies or ,ualitative research.
The various sources of secondary data used for this study areG
&ewspapers.
-aga(ines.
Text books.
-arketing reports of company.
Internet.
R#+#ac, 2#a+(!$. "ool+ J "#c,$!L(#+
The primary tool for the data collection used in the study in this study
Sa2pl!$. D#+!.$
80
1 sample design is a definite plan for obtaining a sample from a given
population. It refers to the techni,ue or the procedure the researcher
would adopt in selecting items for the sample. $ample design may as well
lay down the number of items to be included in the sample i.e. the si(e of
sample.
Sa2pl!$. 2#",o': Co$)#$!#$c# +a2pl!$. has been used in this
study. Convenience sampling is a type of nonprobability sampling which
involves the sample being drawn from that part of the population which is
close to hand. That is, a sample population selected because it is readily
available and convenient.
Sa2pl!$. +!@#: more than 6* customers were provided with the
,uestionnaire for collection of data. The sample was randomly selected
from the area of ?2C3&%# to have a diversified view of research
analysis.
DATA ANALYSIS
81
1fter the collection of primary data obtained from the respondents the data was
been processed and tabulated on pie charts, graphs etc. $tatistical techni,ues
were used for the analysis of data and its presentation.
S"a"!+"!cal Tool+
1 chis,uared test, also referred to as chis,uare test or Y
)
test, is any statistical
hypothesis test in which the sampling distribution of the test statistic is a chi
s,uared distribution when the null hypothesis is true, or any in which this is
asymptotically true, meaning that the sampling distribution @if the null hypothesis
is trueA can be made to approximate a chis,uared distribution as closely as
desired by making the sample si(e large enough.
#eighted average method is used in the analysis of data, it is been used to give
rank to the different factors.
SCOPE OF RESEARC0
82
-arketing :esearch is the function which links the consumer and public to the
marketer through informationinformation used to identify and define marketing
opportunities and problems/ generate refine, and evaluate marketing actions/
monitor marketing performance/ and to improve understanding of marketing a
process.

-arketing management is interested in obtaining sales potentials for
each of the geographic markets its serves to help determine amount of sales
efforts that should be allocated to a specific market. -arket os sales potential
must be stated for a given product or groups of products for a given area for a
given period of time/ usually a year.

In other word market potential is the maximum demand response
possible for a given group of costumers with in a well defined geographic area for
a given product or service over a specified period of time under welldefined
competitive and environmental conditions.

Information from the survey will help management estimate its
overall market share and its share within individual markets. -anagement can
use this information to evaluate past achievements and to pinpoint market in
which the firm"s progress has been noticeably above or below average.

Information"s obtained by survey are useful because they can help
managers determine it past efforts have been successful in obtaining desired
degree of distribution coverage and support. It the firm"s market share objectives
are not being attained, management are not being attained. -anagement will
have to know it the cause of the problem is poor consumer response or
inade,uate distribution coverage and support.
These important information can help managers determine it past advertisement
and promotions have been successful in achieving the desired levels of
83
awareness trade and repurchase among target market members. This can be
useful troubleshooting information, specially it market share objectives are not
being met. In such a situation, management will want to know it the poor sales
record results from low consumer awareness of product, unfavorable attitudes
toward the products or low acceptance of the benefits and feature. Information
obtained by survey can be used in conjuction with information regarding market
share, market potential, distribution performance and consumer response. It
market share objective are not being achieved in a certain market, the problem is
likely to result from poor distribution coverage and.or poor consumer response.
-anagement should first determine which of these is the problem cause of the
lowerthanexpected market share. Then by comparing the pattern of marketing
expenditures in the problem market with the distribution performance and
consumer response information"s as associated with the market managers may
be able to pinpoint those parts of previous marketing plans that had not been
given sufficient budget or that had not been carried out as intended of that were
not as effective as intended.
COKE AND PEPSI IN INDIA
84

CocaCola controlled the Indian market until '<II, when the Danata Party beat
the Congress Party of then Prime -inister Indira Candhi. To punish CocaColaMs
principal bottler, a Congress Party stalwart and longtime Candhi supporter, the
Danata government demanded that CocaCola transfer its syrup formula to an
Indian subsidiary. CocaCola balked and withdrew from the country. India, now
left without both CocaCola and Pepsi, became a protected market. In the
meantime, IndiaMs two largest softdrink producers have gotten rich and la(y while
controlling 5*J of the Indian market. These domestic producers have little
incentive to expand their plants or develop the countryMs potentially enormous
market. $ome analysts reason that the Indian market may be more lucrative than
the Chinese market. India has 5>* million potential customers, '>* million of
whom comprise the middle class, with disposable income to spend on cars,
KC:s, and computers. The Indian middle class is growing at '*J per year. To
obtain the license for India, Pepsi had to export H> of locally made products for
every H' of materials it imported, and it had to agree to help the Indian
government to initiate a second agricultural revolution. Pepsi has also had to take
on Indian partners. In the end, all parties involved seem to come out aheadG
Pepsi gains access to a potentially enormous market/ Indian bottlers will get to
serve a market that is expanding rapidly because of competition/ and the Indian
consumer benefits from the competition from abroad and will pay lower prices.
8ven before the first bottle of Pepsi hit the shelves, local soft drink manufacturers
increased the si(e of their bottles by )>J without raising costs.
PRICE
85
-aximum retail price of B** ml bottles is controlled by the Central Covernment.
The other si(e and packs are priced keeping factors like competition, internal
costs, external costs, and the corporate objective of the company in the mind.
PRODUCT SELLING PRICE MAX8RETAIL PRICE
AP# ca"#? AP# ca"#?
C<< 2l -o""l#+ BH< B7H
><< 2l -o""l#+ C7H C66
5 L!"# -o""l#+ ><< >B<
So'a C<< 2l 57H 566
Ca$+ CCB C>B
58> L!"# PET ><M >>M
-o""l#+
Price per bottles the empty bottles are priced at :s ')* per crate and the
shell at :s '**.
86
PREFERENCE OF SOFT DRINKS IN A DAY
O$c# a 'a* B>F
T4!c# a 'a* B<F
O$c# a 4##% >F
O",# ><F
F!.(#-5
Preference of soft drink among customer )>J once a day, )*J twice a day
>J once a week >*J are others who either prefer or do not prefer.

87
PREFERENCE TO T0E BRAND
P#p+! H<F
Co%# 7<F
F!.(# B
preference to the brand pepsi or coke, 6*J prefer coke and !*J prefer pepsi.
!*J
6*J
*J
)*J
!*J
6*J
5*J
Pepsi Coke
Pepsi Coke
88
TO GIVE T0E PREFERENCES
Mo# Pop(la 5<F
Pac%a.!$. 5<F
Ta+"# ;<F
P!c# 5<F
F!.(# C
Civing the preference I*J for taste, '*J for packaging, '*J for packaging, '*J
for more popular.
89
MARKETING STRAGGLES OF COMPANY EFFECTS T0E SALES
Y#+ >>F
No H>F
F!.(# H
-arketing straggles of company effects the sales >>J of them are yes and !>J
of them are no.
>>J
!>J
*J
'*J
)*J
B*J
!*J
>*J
6*J
0es &o
0es &o
90
FORM OF MARKETING STRATEGIES
T#l#)!+!o$ A')#"!+!$. H>F
N#4+pap# A')#"!+!$. >F
O("'oo A')#"!+!$. B<F
Sal#+ Po2o"!o$ C<F
F!.(# >
It was analy(ed in that forms of marketing strategies television advertising is
most popular to !>J sales promotion is also a better means of advertising to
B*J , outdoor advertising to )*J , newspaper advertising is not as much used
only >J is in ratio.
!>J
>J
)*J
B*J
*J
'*J
)*J
B*J
!*J
>*J
Television 1dv. &ewspaper 1dv %utdoor 1dv $ales Promotion
Television 1dv. &ewspaper 1dv %utdoor 1dv $ales Promotion
91
C0ANGE BRAND ON T0E BASIS OF PRICE REDUCTION
Y#+ >5F
No H:F
F!.(# 7
Change brand on the basis of price of coke and pepsi >'J in pepsi and !<J in
coke.
>'J
!<J
!5J
!<J
>*J
>'J
>)J
0es &o
0es &o
92
MORE EFFECTIVE ADVERTISING
P#p+! Co8 ><F
Co%# Co8 ><F
FFF
F!.(# ;
-ost effective advertising in pepsi and coke both of them are e,ual @>*JA in
giving effective advertise.
>*
J
>*
J
J
J
J
J
J
J
J
J
J
J
J
J
J
J
J
J
J
J
J
J
J
J
J
J
J
J
J
J
J
J
*J
)*J
!*J
6*J
5*J
Pepsi Co. Coke Co.
Pepsi Co. Coke Co.
93
CREATIVE AND APPEALING ADVERTISING OF T0E SOFT DRINK
COMPANY
P#p+! Co8 H>F
Co%# Co8 H>F
F!.(# 6
Creative and appealing advertising of soft drink among pepsi and coke is to !>J
>*
J
J
J
J
J
J
J
J
J
J
J
J
J
J
J
J
J
J
J
J
J
J
J
J
J
J
J
J
J
J
J
!>J !>J
*J
)*J
!*J
6*J
5*J
Pepsi Co. Coke Co.
Pepsi Co. Coke Co.
94
INNOVATIVE AND EXCITING OFFERS
P#p+! Co8 >>F
Co%# Co8 H>F
F!.(# :
I$$o)a"!)# a$' #Nc!"!$. o&&#+
The respondents were asked to compare between PepsiCo and CocaCola ZI[
?td. in terms of who comes up with innovative and exciting offers, or rather things
which are lively and interesting to participate.
>*J of the respondents replied in favor of PCI while B*J responded in favor of
CCI. 'IJ of the respondents thought that both were e,ually good and it varied
with time, place and occasions. BJ of the respondents were not aware of all the
activities and were modest to admit it.
Ouick and responsive to different occasions and events.
>>J
!>J
*J
'*J
)*J
B*J
!*J
>*J
6*J
Pepsi Co. Coke Co.
Pepsi Co. Coke Co.
95
Comparing PepsiCo and CocaCola ZI[ ?td, >>J of the respondents replied that it
was undoubtedly PepsiCo. They supported their statement with reasoning,
saying so that PepsiCo was first to associate with India"s >* years of
independence.
%n the other hand ))J of the respondents felt that CocaCola ZI[ ?td. is not
trailing back. It sponsors mega events like different Cricket tournaments, %lympic
Cames, #orld Cup 9ootball etc.'<J of the respondents came up with a more
balanced answer. They said if one of the companies sponsors
%ne event it"s sure that the other will definitely go on for the next.
96
MARKET PERCENTAGE S0ARE IN ALL OVER INDIA B<5<
P#p+! C5F
Co%# HCF
Local Ba$' B7F
F!.(# 55
-arket percentage share in all over india in beverage is !BJ is tapped by coke
B'J by pepsi and )6J by other brands. 7ence coke has a large share in the the
market than pepsi.
)6J
!BJ
B'J
Pepsi
Coke
?ocal =rand
97
BRAND PREFERENCES
In a survey done by 1 ; - maga(ines on the best marketing companies in India.
Pepsi and CocaCola were also entered. The results were as followsG
P#p+! - >
",
Coca-Cola - H
",
T,# #+(l"+ o& :> 4## :
P#p+! - ;
",
Coca-Cola - :
",
This shows that both the companies are paying more attention to the marketing
of their products. Pepsi is higher up on the scale than CocaCola. #e can see
that by the brilliant advertising done by Pepsi, which can be seen on every hook
and corner of metro cities consumers, so prefer Pepsi advertisements and other
activities of Pepsi, to that of CocaCola.
98
PROBLEMS J
LIMITATIONS
99
PROBLEMS J LIMITATIONS
Considering the fact that nothing is perfect in this world every individual is bound
to make mistake at some point, we are not exception for this problem faced were
associated with the data collection process.

The problems associated with the respondents are the non
sampling 8rror, which can be divided into two categories.
R#+po$+# #o 4 #hen respondent does not give the correct answer.
No$ R#+po$'#$" #o 4 It occurs when respondent does not responds to
some ,uestion.
:efusal to cooperate
Concerned person is not available
Incompetence or in capabilities of the respondent
O",# l!2!"a"!o$+
?ess sampling because of limited span of time.
The respondents may be biased or influenced by some other factor.
The ,uestionnaire techni,ue and observation method was used.
$ome times respondents were not in a position to reply with fully confidence
100
FINDINGS J
ANALYSIS
101
F!$'!$.+ J a$al*+!+
The Indian soft drinks market is at '!* million cases per year. This is very low,
even as compared to Pakistan and =angladesh. 1ll these factors together have
contributed to a )*J growth in the soft drinks industry.. If this demand continues
to grow at )*J grow at )*J annually, within '* years the volumes could reach '
billion cases. This kind of growth is the reason for the entry of the two giants of
the soft drink industry of the world.
CocaCola
Pepsi
CocaCola and Pepsi together control <IJ of the ! entire Indian markets. The
rest of the BJ is shared by companies like Cadbury$chweppes and Campa
Cola. The total no. of case sold is '!* million of these II million cases of Cola
drinks are sold and 6B million of noncola drink. There is a rapid increase in the
sale of cola soft drinks. #hereas in '<<*, they accounted for a third of all soft
drinks sold, now their share is well over half. 1lso cola sales are growing at a
faster rate than noncolas. %ne of the reasons for this could be the aggressive
marketing strategies for Cola drinks by Pepsi and CocaCola.
The race to ,uench the great Indian thirst had deigned.
Pepsi findings
Pepsi is the )&+ largest selling soft drink in India today. In +8?7I it has B>J of
the market share. In India it has !!J of the market share making it the largest
selling soft drink, but the second largest company in terms of sales.
The sales of Pepsi is approximately :s. ',*** crore annually in India of this only
about :s. B* crore annually is credited to the foods section of Pepsi. The rest is
all earned by the soft drinks.
The soft drinks in Pepsi 9oods ?T+ includeG
102
'. Pepsi Cola
). -irinda %range
B. I2p
!. -irinda ?emon
The main advantage the Pepsi has over its nearest competitor i.e., CocaCola is
that of it"s was the first multinational to enter India, in the soft drinks sector. Pepsi
officials and U+ialaPepsi" scheme to grow the market, instead of giving
discounts at the retail level. 1nother point which attributed to Pepsi"s success is
the bottling operations. Pepsi does most of its bottling on its own. 1nother
significant investment of Pepsi has been fountains. 9ountains have considerably
increased sales of Pepsi, as they have offered consumers a whole new way to
experience soft drink. 1ccording to a study done, 5*J of all soft drinks are
consumed on premise, at the point of purchase, rather than at home/ thus the
fountain initiative has paid off.
Thus we see that Pepsi has followed aggressive marketing strategies making
they get into the minds of the consumer by being visible inside and outside the
consumers home by way of television, radio &ewspapers, hoarding, sales
promotion schemes, etc. Pepsi has been voted the number one customer service
company across categories in terms of regularity, availability responsiveness and
initiative.
103
PRESENT COMPETITON BETWEEN COCA-COLA J PEPSI
If we see the present scenario its hard to tell which brand is winning the
cola wars as Pepsi had extended its cola wars to other sectors like 9:IT%
?10$ and &I-=%%Q which is giving tough competition to coca 4cola which
doesn"t target on these sectors.
$econd aspect which is to be given in consideration is that, both the
companies are spending heavily on advertisement and more celebrities are
roped in by both the companies to fight the competition.
:ecently C%?1C%?1 beverages 1CT%:$ I-:1& 371& 1&+ 31?3I for
a new ad /to reply back to this a new ad by P8P$I beverages featuring
1CT%: :1&=I: 31P%%: and KI&+72 +1:1 $I&C7 came up which is
making waves at present.
Coke is served in -C +%&1?+$ and there we won"t find Pepsi products
even the coffee served is of C8%:CI1 which is a CocaCola brand, same
is the case of PIQQ1 72T and 39C which is owned by P8P$I C% there
only Pepsi products are served ,,,this had lead ) clear war in restaurant
segment as wellL
P8P$I is targeting young generation and their ad campaigns are a clear example
of that, whereas CocaCola is targeting the family as a whole which has been its
old formula from ages.
104
Presently CocaCola may be leading in beverages like coke, but its facing
severe competition from -irinda, &imboo( and snack industry where
P8P$I is ruling thanks to its 32:32:8 ad that has led to great sales for
P8P$I C%.
Though in packed drinking water 3I&?80 @C%C1C%?1 =:1&+A and
1CO19I&1 @P8P$I C% =:1&+A both are treated e,ually by customers.
-oreover =I$?8:I still rules in this segment.
105
FUTURE SCENERIO OF COCA COLA VDS PEPSI
The C%?1 #1:$ between CocaCola and Pepsi would further grow and in my
view its never ending
=oth the companies would try to become &%' and there would 1+ #1:
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 +88PI31
P1+23%&8 and C%C1C%?1 which had up till know only endorsed male
actors for the '
st
time endorsed 31?3I of +8K+ fame with I-:1& 371& in its
new ad.
#ith the coming up of C%--8&#81?T7 C1-8$ )*'* in &8# +8?7I ,
both the brands would try to attract customers towards itself with heavy
promotion and ad campaigns to build new customers and increase there
share in market as well as strengthen their brand value and earn profits.
106
SWOT ANLYSIS
COCA-COLA
STRENGT0 WEAKNESSES
Popularity
#ell known
=randing obvious and easily
recogni(ed
1 lot of finance
Customer loyalty
International Trade
#ord of mouth
?ack of popularity of many
Coca Cola"s brands
-ost unknown and rarely seen
:esult of low profile or non
existent advertising
7ealth issues
OPPORTUNITIES T0REATS
Changing health
consciousness attitude
?egal issues
7ealth ministers
Competition @PepsiA
-any successful brands to
pursue
1dvertise its less popular
products
=uy out competition.
-ore =rand recognition
S"#$.",+- Coca Cola is an extremely recogni(able company. Popularity is
one of its superior strengths that is virtually incomparable. Coca Cola is
107
known very well worldwide. ItMs branding is obvious and easily recogni(ed.
Things like, logos and promos shown on tshirts, hats, and collectible
memorabilia. #ithout a doubt, no beverage company compares to Coca
ColaMs social popularity status. $ome people buy coke, not only because of its
taste, but because it is widely accepted and they feel like they are part of
something so big and unifying. 1t the other end of the spectrum, certain
individuals choose not to drink coke, based solely on rebelling from the
worldMs idea that coke is something of such great power. %verwhelming is the
best word to describe Coca ColaMs popularity. It is scary to think that its
popularity has been constantly growing over the years and the possibility that
there is still room to grow. If you speak the words ECoca ColaF, it would
definitely be recogni(ed all around the world. -oney is another thing that is a
strength of the company. Coca Cola deals with massive amounts of money all
year. ?ike all businesses, they have had their ups and downs financially, but
they have done well in this compartment and will continue to do well and
improve. The money they are earning is substantially better than most
beverage companies, and with that money, they put back into their own
company so that they can improve. 1nother strength that is very important to
Coca Cola is customer loyalty. The 5*.)* rule comes into effect in this
situation. 8ighty percent of their profit comes from )*J of their loyal
customers. -any people.families are extremely loyal to Coca Cola. It would
not be rare to constantly find bottles and cases of a product such as coke in a
house. It seems that some people would drink coke religiously like some
people would drink water and milk. This is an improbable feat. Customers will
continually purchase these products, and will probably do so for a very long
time. If two parents were avid Coca Cola drinkers, this will be passed down
do their children as they grow loyal to the company. #ith Coca Cola"s ability
to sell their product all over the world, customers will continue to buy what
they know and what they likeLCoca Cola products.

108
W#a%$#++#+- Coca Cola is a very successful company, with limited
weaknesses. 7owever they do have a variety of weaknesses that need to be
addressed if they want to rise to the next level. #ord of mouth is probably a
strength and weakness of every company. #hile many people have good
things to say, there are many individuals who are against Coca Cola as a
company, and the products in which they produce. #ord of mouth
unfortunately is something that is very hard to control. #hile people will have
their opinions, you have to try to sway their negative views. If bad comments
and views are put out to people who have yet to try Coca Cola products, then
that could produce a lost customer which shows why word of mouth is a
weakness. 1nother aspect that could be viewed as a weakness is the lack of
popularity of many of Coca Cola"s drinks. -any drinks that they produce are
extremely popular such as Coke and $prite but this company has
approximately !** different drink types. -ost are unknown and rarely seen
for available purchase. These drinks do not probably taste bad, but are rather
a result of low profile or non existent advertising. This is a weakness that
needs to be looked at when analy(ing their company. 1nother weakness that
has been greatly publici(ed is the health issues that surround some of their
products. It is known that a popular product like coke is not very beneficial to
your body and your health. #ith today"s constant shift to health products,
some products could possibly loose customers. This new focus on weight and
health could be a problem for the product that are labeled detrimental to you
health.

Oppo"($!"!#+- Coca Cola has a few opportunities in its business. It has many
successful brands that it should continue to exploit and pursue. Coca Cola
also has the opportunity to advertise its less popular products. #ith a large
income it has the available money to put some of these other beverages on
the market. This could be very beneficial to the company if they could start
selling these other products to the same extent that they do with their main
109
products. 1nother opportunity that we have seen being put to use before is
the ability for Coca Cola to buy out their competition. This opportunity rarely
presents itself in the world of business. 7owever, with Coca Cola"s power and
success, such a task is not impossible. Coca Cola has bought out a countless
number of drink brands. 1n easy way to turn their profit into your profit is too
buy out their company. 8ven though this may cost a vast amount of money
initially, in the long run, if all goes to plan, it results in a large profit. 1lso, the
company will no longer need to worry about this product being part of the
competition. =rand recognition is the significant factor affecting Cokes
competitive position. Coca Cola is known well throughout <*J of the world
population today. &ow Coca Cola wants to get there brand name known even
better and possibly get closer and closer to '**J. It is an opportunity that
most companies will ever dream of, and would be a supreme
accomplishment. Coca Cola has an opportunity to continue to widen the gap
between them and their competitors.
T,#a"+- +espite the fact that Coca Cola dominates its market, it still has to
deal with many threats. 8ven though Coca Cola and Pepsi control nearly !*J
of the entire beverage market, the changing healthconsciousness attitude of
the market could have a serious effect on Coca Cola. This definitely needs to
be viewed as a dominant threat. In today"s world, people are constantly trying
to change their eating and drinking habits. This could directly affect the sale of
Coca Cola"s products. 1nother possible issue is the legal side of things. There
are always issues with a company of such supreme wealth and popularity.
$omebody is always trying to find fault with the best and take them down.
Coca Cola has to be careful with lawsuits. 7ealth minister could also be
looked at as a threat. 1gain, some people may try to exploit the unhealthy
side of Coca Cola"s products and could threaten the status and success of
sales. %ther threats are of course the competition. Coca Cola"s main
competition being Pepsi, sells a very similar drink. Coca Cola needs to be
110
careful that Pepsi does not grow to be a more successful drink. %ther product
such as juices, coffee, and milk are threats. These other beverage options
could take precedent in some people"s minds over Coca Cola"s beverages
and this could threaten the potential success it presents again.
P#p+!co
STRENGT0 WEAKNESS
established name and
reputation.
-arket leaders.
=rand loyal customers.
$trong international position.
1ttractive work environment.
$trong advertising campaigns.
Kast distribution channels.
Pepsi target only young
customers in their promotions.
&ot available in far off rural
areas.
2navailability of all products of
Pepsi at the same outlet.
+ecline in taste and ,uality
Centrali(ed decision making
&ot all the PepsiCo products
bear the company name.
OPPORTUNITIES T0REATS
111
+emand of Pepsi is more than
its competitors.
Increase in population
The company may also diversify
its business in some other
potential business.
Increased interest of people in
musical groups, cultural shows
and sports has provided an
opportunity for Pepsi to increase
its sales through them.
Increase demand of beverages
among young generation will
increase growth rate in this
industry
Tough rivalry among
competitors.
Cola drink are not good for
health so the awareness level of
the people is increasing which is
a big threat to the company.
8conomic downfall might bring
meaning full damages.
Covernment regulations
&oncarbonated substitutes and
fake products
$hortage of electricity

112
SUGGUSTIONSD
RECOMMENDATIONS
113
RECOMMENDATIONS
$oft drinks are an impulse product. #hen a person is thirsty, he would first think
of water or tea. $ome even would prefer U&imboo( E\
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 softdrink
manufacturers. The Indian soft drink market is at '!* million cases per year, this
is very low. Thus the consumption of soft drink can go up.
$inc''5Re the entry of CocaCola into the country the industry is growing at a
rate of )*J annually. If this rate is maintained, then by the year )**> the market
of soft drink would be ' billion cases annually.
7owever CocaCola wants to accomplish this feat by them. To do this the
industry has to take certain steps. 1ll 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.
%n 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
followsG
$oft drinks retail at prices between :s. 6 and :s. '*. These are expensive
when measured against purchasing power.
1ccording to one study, it takes Indian >* 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.
114
1vailability is a major factor, which makes the consumer buy a soft drink. $oft
drinks should be made available more readily than present. There are only B**,
*** retailers stocking soft drinks in India. Thus retailing outlets should be
increased. 1lso 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. These
Tempt a person into buying the soft drink. $o if vending machines are put in
strategic areas, it would definitely increase consumption of soft drinks.
$oft drink cans which are very convenient, as the consumer can take them
anywhere, unlike a bottle, are very expensive retailing from :s. '>:s. '5. To
increase sale of cans, this price should be brought down.
Innovations increase sales of company. 9or e.g. fountain Pepsi increased sales
of Pepsi Cans increased sales of CocaCola. Thus the companies hav constantly
come out with innovative ideas.8xampleB** 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 conduct studies to get to know about consumer habits.
9or e.g. Coke knows that 1mericans see 6< of its commercials every years , put
>.) ice cubes in a glass and prefer cans to pop out of vending machines at a
temperature of B> 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.
115
Companies should try to educate the consumer about the health related subject.
9or e.g.G
aA ?imca is recommended to patients by doctors.
bA Cola drinks are known to be very fattening ,
=ut 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 e,uity. This provides a number of
advantages to the company.
aA The company enjoys reduced marketing costs because of high level of
consumer brand awareness and loyalty.
bA The company will have more trade leverage in bargaining with distributors
and retailers since the customer expects them to carry the brand.
cA The company can change a higher price than its competitors because the
brand has higher perceived ,uality.
dA The company can more easily launch brand extension.
eA 1bove all, the brand offers the company some defense against fierce price
competition.
The companies should go in for diversification
%nce the brand is known, it is easier to sell more of its products. 9or e.g. Coca
Cola clothes have sold about H'** 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 noncola sector
open for Cadbury$chweppes.
116
1dvertising is a way building brand image. It does not promote ,uick selling.
Thus companies should used advertising only for long advertising can be used
forG
aA =rand image building
bA :eminder advertisingG reminding people to buy these drinks.
cA :einforcement advertisingTelling people that they have made the right
choice.
Television advertising seems to make a impact on the consumers @based on
,uestionnaire answersA so companies should concentrate more on television
advertisements.
$ales promotion tools create a stronger and ,uicker response. Thus sales
promotion tools such as coupons, contests, premiums and the like should be
used to dramati(e product offers and to boost sales. $alespromotion effects are
usually short run and induce the people to purchase soft drinks, now.
CocaCola and Pepsi have taken up sponsoring of events on a major scale.
1ll kinds or events, whether big @#ills #orked cupA or small @college contestsA
have either Pepsi or Coke banners of sponsorship. The effectiveness of this can
be ,uestioned. #hether these activities increase sales or not is a big huge
,uestion mark.
PepsiCo and Coca Cola @IA ?td. 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. 9or e.g. Pepsi"s new campaign EPepsi cool malF
in which they are giving free gifts to their customers.
The company should maintain a small group of Emissionary sales manF 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.
117
It is also recommended that companies should launch soft drink in small pack
)** ml and '>* 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.
118
CONCLUSION
1fter the completion of project we have seen the different aspects of this
project.
1lso we have gained some new experience about the consumer research. #hile
surveying we have met a large number people, with different perceptions, with
different nature, and as a result of this we have learnt a lot of things like how to
talk with the different people with different behavior. #e have benefited a lot and
this will definitely help us a lot in the future. 1lso the outcome that came out from
this research work is that in Tricity coke is the market leader with !BJ market
share. Pepsi is having only B'J market share and rest of the )6J is covered by
local brands. #e come to know that Pepsi is the leading brand of Pepsi co.
having first preference among customers. Through this research we also come to
know that young generation is the potential market for beverage industry, taste is
the '
st
preference to choosing the product and one more important factor that
below ') years and above to >* years people like the soft drinks while people
between ') B* year prefer cola drinks and rest people who comes in between
B* >* year have common.
119
ANNEXURE
120
ANNEXURE
/UESTIONNAIRE
+ear si r.madam,
I am the student of l ucknow publ i c col l ege of professi onal studi es
conducti ng a market research on EC%-P8T1TIK8 1&1?0$I$ %9
$%9T +:I&3G C%C1 C%?1 1&+ P8P$IC%F. I re,uest you to fi l l thi s
,uesti onnai re and i wi l l col l ect thi s data onl y for educati on purpose.
NAME:OOOOOOOOOOOOOOOO8
GENDER:
MALE
FEMALE
OCCUPATION:
PROFESSIONAL
BUSINESSMAN
SERVICE
STUDENT
0OUSEWIFE
ANY OT0ER

/858 W0IC0 BRAND WILL YOU PREFERENCE OF SOFT DRINKS IN A DAYK
O$c# a 'a*
T4!c# a 'a*
O$c# a 4##%
O",#
121
/8B8 W0IC0 BRAND ARE YOU PREFERENCE TO T0E BRANDK
P#p+!
Co%#
/8C8 W0IC0 PARTICUALAR RATE TO GIVE T0E PREFERENCESK
Mo# Pop(la
Pac%a.!$.
Ta+"#
P!c#
/8H8 ARE T0E MARKETING STRATEGIES OF A COMPANY AFFECT ITS
SALESK
Y#+
No
/8>8 W0IC0 FORM OF MARKETING STRATEGIES IS MOST EFFECTIVE IN
T0E MARKETK
T#l#)!+!o$ A')#"!+!$.
N#4+pap# A')#"!+!$.
O("'oo A')#"!+!$.
Sal#+ Po2o"!o$
/878 WILL YOU C0ANGE T0E BRAND ON T0E BASIS OF PRICE
REDUCTIONK
122
Y#+
No
/8;8 W0IC0 BRAND MORE EFFECTIVE IN ADVERTISINGK
P#p+! Co8
Co%# Co8
/868 W0IC0 BRAND 0AS CREATIVE AND APPEALING ADVERTISING OF
T0E SOFT DRINK COMPANYK
P#p+! Co8
Co%# Co8
/8:8 W0IC0 BRAND 0AVING T0E INNOVATIVE AND EXCITING OFFERSK
P#p+! Co8
Co%# Co8
/85< Do *o( ",!$% ",a" Coca-Cola a$' P#p+! -o", a# la)!+,l* +p#$'!$. o$
",#! a' ca2pa!.$+ "o a""ac" c(+"o2#+8
YES
NO
123
9or the purpose of the study, ,uestionnaires were prepared for the Consumers.
Care was taken to interview all types of consumers, i.e., G
a. +ifferent age groups
b. -ales and females
c. People from different localities, etc.
In all about 6* consumers were interviewed. The conclusions that one can draw
from these answers provided by the consumers showed that marketing activities
do form a major part of the decision.
%ne 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
softdrink was taste. This was true for all the consumers who were interviewed.
The rest of the conclusions as deducted from the ,uestionnaires are as followsG
The younger generation preferred soft drinks to the older generation.
a. Children up to '> years of age liked to have soft drinks up to )B times a day.
b. 0oung adults liked to have soft drinks up to ') times a day.
c. 1dults liked to have soft drinks about once or twice a week.
Children preferred CocaCola 9anta, -irinda orange. 0oung adults liked Pepsi.
The older generation preferred CocaCola, ?imca ; -irinda ?emon.
The reason given for choice of favorite"s soft drink was taste and easy availability.
%nly if the consumer liked the taste of drink, he would have it again.<>J of the
consumers felt that marketing strategies of the company did affect the sales of
their softdrink.
124
-arketing 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. 0oungsters were more acceptable to change. They tried different drinks,
Cola and nonCola. 1dults stick to one and they prefer drinks that do not affect
their health, like ?imca.
-ajor number of people found television advertising to be the most effective.
0oung and the old liked to watch the advertisements on television.
$ponsoring events, outdoor advertising and sales promotion schemes were
second choice of the consumers. 2nder television advertising, Pepsi came in as
the number ' favorite of the people the advertisement of $hah:ukh 3han and
the dog was the favorite of the consumers. Their new advertisement of -irinda
?emon is also lifted by the people. The advertisement that came in second was
the CocaCola advertisement of the people Cricket and the song -ust3alander
going on at the back. These, advertisement remained most in the minds of the
people.
125

ANALYSIS OF /UESTANNAIRE
>< #+po$'#$"+ 4## c,o+#$ a2o$. '!&&##$" a.# .o(p+ &o
co$'(c"!$. ",# +()#*
FINDINGS:
'. 0%2&C$8T:$ prefer P8P$I C%?1 over C%38
). %lder age group prefer -irinda lemon and limca over coke and
Pepsi cola
B. 1+$ play a major role in choosing of brand
!. Celebrities have a great effect on people consuming cold drinks
>. People prefer &imboo( @Pepsi coAover Pepsi cola and coke.
6. In terms of innovative and exciting offers Pepsi co leads CocaCola.
I. #hen the ,uestion of more effective advertisements was asked
mixed reactions came with >*>* response for both Coke and
Pepsi.
5. Price plays an effective role for choosing of product among I&+I1&
C%&$2-8:$.
<. T1$T8 came out to be most important for the consumers in
preferring for a particular brand.
'*. T8?8KI$I%& came out to be most effective for ad campaigns as
respondents of all age groups watch tv.
126
BIBLIOGRAP0Y
I$"#$#":
4448p#p+!8co2
4448.oo.l#8co2
44484!%!p!'!a8co2
4448p#p+!co8co2
4448coca-cola8co2
4448coca-4a+8$#"
Boo%+:
Ma%#"!$. Ma$a.#2#$"- B* P,!l!p Ko"l#
ADVERTISING MANAGEMENT BY 1ET0WANEY AND 1AIN
COLA WARS BY 18C8LOUIS
R#+#ac, 2#",o'olo.* -* C8R Ko",a!
Ma.a@!$#+
R#+#ac, pap#+
127
128