INSTITUTE OF MANAGEMENT SCIENCES

UNIVERSITY OF LUCKNOW

Research Work on Cola wars Strategies adopted by Pepsi and Coca cola and their effectiveness
Cola war continues

DISSERTATION REPORT IN PARTIAL FULFILLMENT OF THE AWARD OF FULL TIME MASTERS IN BUSINESS ADMINISTRATION (CORPORATE MANAGEMENT) 2010-2011

Prepared by-

Himanshu Gupta
MBA CM 4TH SEMESTER ROLL NO- 901112020

Under guidance of Miss Smita Singh

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Final Project

A Research work on Coke vs. Pepsi Cola war continues

Soft Drink Industry

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A CULTURAL PROFILE

Cola Wars
Continue

Coke and Pepsi

CONTENTS Chapter No. Chapter No1 INTRODUCTION 1.1 Introduction 1.2 Need for the Study 1.3 Objective of the Study 1.4 Methodology SOFT DRINK COMPANY OVERVIEW 2.1 Genesis and Growth Chapter No2 2.2 Limitations of the study 2.3 Soft drink industry analysis 2.4 Financial Analysis 2.5 consequences of cola wars in recent past 2.6 Future Function DATA ANALYSIS AND INTERPRETATION 3.1 Introduction 3.2 Details of the survey conducted Chapter No3 SUMMARY AND SUGGESTIONS 4.1 Swot analysis of cold drink industry 4.2 Findings 4.3 Suggestions Chapter No4 4.4 Conclusion 4.5 Questionaire APPENDIX BIBLIOGRAPHY 12 13 14 27 29 31 33-46 33 46 47-56 47 50 52 54 55 58 58 Title Page No 4-11 4 9 10 11 12-32

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1.1 INTRODUCTION
Today many new companies are coming in to

existence and because of this the competition is also growing rapidly. Because of this reason they have to compete with their competitors constantly. In some industries the new companies may not come in to existence but the competition between the existing companies is growing more and more. The soft drink industry is mainly suffering with this particular problem. The Companies have to continuously compete with their old competitors to get good market share and good profits. To face their competitors they have to know their position and the competitors position in the market. For this, the Companys go for the continuous strategic and comparative analysis in all aspects. In the present scenario in the soft drink industry, the two giant companies are fighting with each other. They are adopting and changing the strategies frequently. They are changing their schemes and offers according to their competitors. They have to analyze their competitors strategies and techniques comparing with their companys strategies and techniques. The study on comparative Analysis of Pepsi and Coke is very useful to Pepsi Company. The comparison is done on all aspects of the Company. There are two famous beverage companies, Coke and Pepsi, have been competing dramatically and distributed the beverage market profit for several decades. In the free market, it is hard to exactly tell which one is the winner within the perfect competition, because both companies using the
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different styles of commercials and products to expand their markets. Coke targets mostly every strata of population while pepsi tries to target mostly younger generation and Pepsi has made more people to appreciate its value and product than Coke. It is interesting to hear that Pepsi won the Taste test over Coke in the world wide. This is the good sign for the company to get good market share. More people voted for Pepsis taste than Cokes taste. Coke Company blames that all these taste tests meaningless and not the proper ones to decide the taste and the greatness of the soft drinks. The production cost of Pepsi Company is less than Coke because Pepsi Company is using the Franchisees for the production purpose and giving the remuneration for the production and maintaining the quality of the products by the regular checkups. In case of Coke it has its own production units and producing the products in their own plants, this increases the production cost of the drinks of Coke, because of this reason the profits of Coke reduced when compared to Pepsi. When we compare the commercial Ads of the two companies, Pepsi and Coke there is a major thing that we can pick up from them, which is the representative of their products. In other words who are the representatives in both commercial Ads? The companies try to establish an image to the public is that their brands are closely related to our environment and culture in which we are living. This is the main secret of the Ads of the Soft Drinks. Sometimes they directly hit
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the egos of the customers and to satisfy their ego they will show the solution, that is the product of the company. This should be taken care by the Advertising department. For this reason they will use different locations of the country and different cultures of the country and different religions of the country in their Advertisements

THE COLA WARS

Our real competition is water, tea, nimbupani and Pepsi... in that order." - Coke sources in 1996. "When you're No 2 and you're struggling, you have to be more innovative, work better, and be more resilient. If we became No 1, we would redefine the market so we became No 2! The fact is that our competition with the Coca-Cola company is the single most important reason we've accomplished what we have. And if they were honest, they would say the same thing." - Pepsi sources in 1998. "Both companies did not really concentrate on the fundamentals of marketing like building strong brand equity in the market, and thus had to resort to such tactics to garner market shares." - Business India in 1998. The Rivalry on Various Fronts I Bottling
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Bottling was the biggest area of conflict between Pepsi and Coke. This was because, bottling operations held the key to distribution, an extremely important feature for soft-drink marketing. As the wars intensified, both companies took pains to maintain good relationships with bottlers, in order to avoid defections to the other camp. II Advertising When Coke re-entered India, it found Pepsi had already established itself in the soft drinks market. The global advertisement wars between the cola giants quickly spread to India as well. Internationally, Pepsi had always been seen as the more aggressive and offensive of the two, and its advertisements the world over were believed to be more popular than Coke's.

It was rumored that at any given point of time, both the companies had their spies in the other camp. The advertising agencies of both the companies (Chaitra Leo Burnett for Coke and HTA for Pepsi) were also reported to have insiders in each other's offices who reported to their respective heads on a daily basis... III -Product Launches Pepsi beat Coke in the Diet-Cola segment, as it managed to launch Diet Pepsi much before Coke could launch Diet Coke. After the Government gave clearance to the use of Aspertame and Acesulfame-K (potassium) in combination (ASK), for use in low-calorie soft drinks, Pepsi officials lost no time in rolling out
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Diet Pepsi at its Roha plant and sending it to retail outlets in Mumbai. IV Poaching Pepsi and Coke fought the war on a new turf in the late 1990s. In May 1998, Pepsi filed a petition against Coke alleging that Coke had 'entered into a conspiracy' to disrupt its business operations. Coke was accused of luring away three of Pepsi's key sales personnel from Kanpur, going as far as to offer Rs 10 lakh a year in pay and perks to one of them, almost five times what Pepsi was paying him. Sales personnel who were earning Rs 48,000 per annum were offered Rs 1.86 lakh a year. Many truck drivers in the Goa bottling plant who were getting Rs 2,500 a month moved to Coke who gave them Rs 10,000 a month. While new recruits in the soft drinks industry averaged a pay hike of between 40-60% Coke had offered 300-400%. Coke, in its reply filed with the Delhi High Court, strongly denied the allegations and also asked for the charges to be dropped since Pepsi had not quantified any damages. V -Other Fronts Till the late 1980s, the standard SKU for a soft drink was 200 ml. Around 1989, Pepsi launched 250 ml bottles and the market also moved on to the new standard size. When Coke re-entered India in 1993, it introduced 300 ml as the smallest bottle size. Soon, Pepsi followed and 300 ml became the standard. But around 1996, the excise component led to an increase in prices and a single 300 ml purchase became expensive. Both the companies thus decided to bring back the 200 ml bottle, In early 1996, Coke launched its 200 ml bottles in Meerut and

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gradually extended to Kanpur, Varanasi, Punjab and Gujarat, and later to the south. In May 1996, Coke launched Thums Up in blue cans, with four different pictures depicting 'macho sports'such as sky diving, surfing, wind-surfing and snow-boarding. Much to Pepsi's chagrin, the cans were colored blue - the color Pepsi had chosen for its identity a month earlier, in response to Coke's 'red'identity... There were frequent complaints from both the players about their bottlers and retailers being hijacked. Pepsi's blue painted retail outlets being painted in Coke's red color overnight and vice-versa was a common phenomena in the 1990s. Coke also turned its attention to Pepsi's stronghold - the retail outlets. Between 1996-98, Coke doubled its reach to a reported 5 lakh outlets, when Pepsi was present at only 3.5 lakh outlets. To reach out to smaller markets, interceptor units in the form of mobile vans were also launched by Coke in 1998 in Andhra Pradesh, Tamil Nadu and West Bengal. However, in its rush to beat Pepsi at the retail game, Coke seemed to have faltered on the service front. For instance, many shops in Uttar Pradesh frequently ran out of stock and there was no servicing for Coke's coolers...

1.2 NEED FOR THE STUDY

In the present scenario the competitions between the soft drinks increased very high. The companies are struggling a lot to keep up their market share in the industry and to improve the sales of their products i.e. the turnover of the company. For this the company has to know their position in the market and the opinion and the loyalty of the customers and the retailers when compared to their competitor. Because of this reason the
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strategic and comparative analysis is very important and useful to the Company. By the use of comparative analysis the companies can understand the position of the company and the strength of the company in the market. Through the comparative analysis we can understand that what strategies the competitors are using for the increase their sales volume. From the study we can gather the information regarding the opinion of the retailers on the companies comparatively and this will help to plans for the future to increase the performance of the company and to gain the loyalty of the retailers when compared to the competitors. Through this study the investigator got the personal experience in the market field. He can implement his theoretical knowledge in to practice. He can know how the companies are competing with each other to sustain in the market in this tough competitive world. Hence I felt that there is a need for the study. However, this type of study has not been carried out earlier by any investigator.

1.3 OBJECTIVES OF THE STUDY

In the present scenario the competitions between the soft drinks increased very high. The companies are struggling a lot to keep up their market share in the industry and to improve
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the sales of their products i.e. the turnover of the company. For this the company has to know their position in the market and the opinion and the loyalty of the customers and the retailers when compared to their competitor. Because of this reason the comparative analysis is very important and useful to the Company.
To study the overview of Pepsi Company (Pearl Bottling Pvt. Ltd.). 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.

1.4 METHODOLOGY
Data which is required for this study is based on both primary and secondary data. Primary Data: Primary data is collected from the retailers through a structured questionnaire. It includes the first hand information from the outlets. It can view as a survey. The questionnaire was especially designed to find out the market share of Pepsi and Coke Companies comparatively in these clusters. Through this information we can get the strengths and weaknesses of Pepsi and Coke Companies in those particular clusters. The total primary data was collected from the following clusters. Alambagh Aminabad
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 kapurthala Secondary Data: Secondary sources include the information collected from the annual reports, published and unpublished records of the company .various books and journals were referred. Internet was also being used for collecting the relevant data which is not available in the books. Some of the websites are: WWW.pepsiindia.co.in WWW.pepsico.com WWW.indiainfoline.com WWW.oppappers.com After gathering the data from those two sources the data was analyzed and the important information was extracted for the use of study. Data Analyzing Tools: After gathering the data from the Primary and secondary sources the data were tabulated using a structured format, was analysed using some calculations to sum up the total information. The resultant data has been used in tabular format to prepare the graphical representations. After the graphical representation the interpretation was done to each and every graph using the Microsoft word and Microsoft Excel. Interpretation is the total essence of the total study. The conclusions were made using the interpretation

2.1 GENESIS AND GROWTH

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PepsiCo brands are available in more than 200 countries in the world. The worlds headquarters of PepsiCo is situated in New York, USA. It occupies 144 acres in the city. The headquarters of India is situated in Mumbai. Indra Nooyi took the charges as CEO of PepsiCo in Oct 1, 1996 and she got the Outstanding American by Choice Award. She is leading the organization very successfully and she was named in the top and powerful women in the world. Now the market share of PepsiCo in India is 53% and the remaining was caught by its tough competitor Coca-Cola. These companies are the major competitors to each other. Today the consumption of soft drinks is more than water in America. More than 5,560 million liters of carbonated soft drinks are consumed every year in USA, this refers that the consumption of soft drinks is more than water in America. Personally I believe that Pepsi earned higher profit than Coke because Pepsi has better marketing strategies and the representative for its commercials and T.V Ads cost is lowers. The Pepsi Challenge deals with Pepsis emergence as a serious, head-to-head competitor. The challenge was a local gimmick introduced in Dallas Texas by a small Pepsi bottler. It was so successful in conveying the message that Pepsi tasted better than Coke that it was rolled out nationally. Coke ended up losing market share. In 1979 Pepsi passed Coke in food store sales for the fist time. This was also the first time that a Pepsi attack made Coke sit up and take notice. During this period Coke amended its bottling contract so that if could increase the price of concentrate. Pepsi countered this move by increasing the price of concentrate to its bottlers.
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The Cola Wars Heat Up covers the era that began when Roberto Goizueta took over at Coca-Cola. The company began buying up its bottlers and selling off non-soft-drink businesses. The Coke brand was extended for the first time to Diet Coke and the formula for Coca-Cola was changed for the first time. While all this was going on smaller Cps were being bought and sold numerous times. 1950: Coke have 47% and Pepsi have 10% 1970: Coke have 35% and Pepsi have 29% 1990: Coke have 41% and Pepsi have 32% 2000:Coke have 44%Pepsi have31.4% other beverage Cadbury Schweppes 14.7% 2006:Coke have Schweppes 14.5% 43.1% Pepsi have 31.7% Cadbury

2.2 LIMITATIONS OF THE STUDY

The study has the following limitations: 1. Time allocated for the study is one month which is not sufficient for in-depth study. 2. Unavailability of some information due to the lack of awareness of retailers in these clusters. 3. Bias in the information provided by the retailers.
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2.3 Soft Drink Industry Analysis

Pepsi Company is giving the huge publicity about their products introduced in the market and the products yet to come in to the market. They are using the big film stars, cricket players, tennis players and etc. as their brand ambassador to attract the people. It creates a psychological feeling that their favorite name and famed persons are consuming the products then why should I consume the product. The soft drink companies are spending lots of amount on the advertising. There is always the cold war is going on. The Four P Components of Marketing Mix:

Marketing mix

Target Market

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Product promotion Product Variety Sales Promotion Quality Advertising Design Sales Force Size Public Relation Service Direct Marketing Returns Transport Allowances Discount List Price

price

place

Channels

Coverage

Assortment

Credit Terms

Location

Inventory

The 3A's StrategiesThe strategy for reaching increasing numbers of consumers in India is based on the belief that consumers will buy our products it they are Available, Affordable and Acceptable. Focus on the consumer and customer,
To provide quality customer services, and caring about the quality of performance in respective jobs. Caring enough about what we do, to it the best we know how.

The 3A's is Cola industry underlying strategy for meeting its goal to reach increasing numbers of consumer's. How does coke position its limited resources to help meet its good. Let us explore the specific ways in which the Coca-Cola system
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addresses each of the 3A's AVAILABILITY Some of the ways in which the Coca-Cola Company hopes to increase innovative availability of its product include systems, improved or

packaging,

dispensing

distributions

system, and marketing. AFFORDABILITY The ways to address affordability include pricing decisions, as well as resource management. To make its product available at a price affordable to the consumer. Continually processes more efficient and therefore more cost-effective. ACCEPTABILITY Making soft drinks brand products the beverage choice for any occasion's depends on a variety of strategies to reach the target audience. The common strategies adapted to effect acceptability were though sponsorships, promotion youth market activities, community programs, and other activates.

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The consistency of the product mix refers to how closely relate the various product lines are in end use, Production requirements, distribution channels, or some other way. Pepsi Companys product lines are consistent in so far so they are consumer goods that go through the same distribution channels. The lines are less consistent so far as they perform different functions for the buyers. These four product-mix dimensions permit the company to expand its business in four ways. It can add new product line and can add more product variants to each product and deepen its product mix. Finally, it can pursue more product-line consistency. The future of any product is totally depends on these aspects. They should introduce the right product with a suitable price in a right place, at the same way the promotions also should match the place. That means the advertisement should be in right manner. Product Mix Width & Product line length for Pepsi India Pvt. Ltd. compared to Coke Company:
Product Mix Width Soft drinks Pepsi Coke Pepsi Coca-Cola Product Line Length 7 Up Orange Mirinda Mountain Dew Sprite Fanta Aquafina Thumps Up Kinely

Drinking water Pepsi Coke

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Lemon Mirinda Slice Diet Pepsi Evervess Soda

Limca Maaza Diet Coke Kinely Soda

Product: The marketer has to do the survey to understand the needs and wants of the customer and has to inform to the production department. Then the R&D department will do the research accordingly. The production department will produce the product to fulfill the requirement of the customers. All these factors come under this part of the product mix. Pepsi Company is producing many brands of soft drinks and doing the marketing of those products. They are taking care of the quality of the products.

Product wise comparison of Pepsi with competitor CocaCola

Pepsi Pepsi Aha Mirinda ( orange+lemon+apple) Teem Soda Slice 7UP Mountain dew Diet Pepsi Aquafina(mineral water)

Coke, Thumps Up Fanta(orange),Limca Maaja Sprite Kinley(soda) Diet Coke Kinley (mineral water)

Price:
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The company will fix the price of a product based on some aspects, those are; Production Cost, Variable Cost, and some other things and they will finally add their desired profit to that cost and the final cost of that product will be fixed. This is called the Maximum Retail Price (MRP). This step should be taken care because the price of the product should be according to its quality, and also should be taken care of the competitors price.

If the price is too high when compared to the competitor and not worth of its quality then the sales of that product becomes difficult and the company will face the losses. The company should also have to think what will be the
return on investment. Place: The company should think a lot before launching a product in to the market. They have to identify where it is better to launch the new product first so that they can get success. Generally every company selects a specific region to launch their new products, because first they will go for the test marketing before the mass production of the production. If the customers are satisfied with that product then they will start the mass production and launch in all areas. In case they found any fault with that product then they will redesign the product and rectify that problem and re-launch the products. They will take care of the distribution channels also while launching the new product in one area. They have to design what

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will be the channel structure and what will be the results of that structure. Pepsi Company following this structure; Producer ----- Dealer------ Retailer ------- Customer Producer-------company dealer------Retailer------Customer They will also estimate the distribution cost that is transportation cost and will search for the remedies to reduce the cost of distribution. The company should also think of the inventory, because they have to stock the goods for some time and will supply the product to the customers. For this they have to arrange the warehouses. Promotion: In todays competitive environment, having the right product at the right place, at the right time may not be enough to be successful. Effective communication with the target market is essential promotion is the p of the marketing mix designed to inform the market place about who you are, how good your product is and where you can buy it. Promotion is also useful to persuade the customers to try a new product or buy more of an old product. The promotional mix is the combination of personal selling, advertising, sales promotion and public relations that uses in its marketing plan. Above the line promotions refers to mainstream media advertising through common media such as television, magazines. radio, transport, billboards, newspapers and

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The company will offer many things to the traders as well as to the consumers. If the company will give good schemes to the dealers and the retailers then they will promote that brands and the sales will be increased. In the same way the companies are also providing many offers to the consumers like: Drink Pepsi, see the crown and win foreign trips, cash prize and many more things. Drink Pepsi and go to World Cup offer. Drink Sprit and win NOKIA Multimedia Mobiles. Drink 7up and win 7 Golden Lemons and many more gifts worth of 7 crores. Buy Maaza 1 lt. bottle and get 200ml Pulpy Orange worth Rs. 15 free. In the case of soft drinks the Advertisement is the main promotional activity. The companies are investing millions of rupees on Ads. They are preparing various types of Ads targeting different category of People. They are preparing the Ads very innovatively in the way to attract the customers and against their competitor. Through the Ads the company will create the feeling in the customers mind that this drink is good and should go for that drink only. Many customers will go for same brands because of the influence of the advertisements only. Some Ads will hurt the ego feeling of the customers and through that way also they will attract the customers. In these ways promotional activities plays

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a vital role in the sales increase of a product as well as it will create a brand image in the customers mind.

Comparison of the Slogans of the two Major Brands:

The slogans are very important for the advertising purpose. The slogans will attract the customers a lot. The slogans will give the views and the intentions of the company that what they want to share with the customers. We can say slogan is an appeal to the customers about the products of the company. Pepsi and Coke have very different targeting strategies. Pepsi is promoting itself as something new , young and hip, which seems a little odd aver 100 years. Coke is tuning itself as the original, the authentic and appealing to a sense of traditional one. Pepsi has always targeted the youth market more aggressively than Coke. The companies have been changing their Logos continuously to attract the new customers. They are trying to create the new image and look to their Companies through changing the Advertisements taglines.
Slogans of Pepsi Company Slogans of Coke Company

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1903 Exhilarating, invigorating, Aids Digestion. 1907 Original Pure Food Drink 1909 Delicious and Healthful 1915 For All Thirst-Pepsi-Cola 1919 Pepsi-Cola-it makes Scintillate you 1928 Pepsi you Up! 1932 Sparkling, Delicious. 1934 Refreshing and Healthful 1939 Twice As Much For A nickel Too 1943 Bigger Drinks, Better taste. best? 1950 more Bounce to the Ounce 1950 The light Refreshment 1954 Refreshing without Filling 1958 Be Sociable, have a Pepsi 1961 Now Its Pepsi, for those who think Young. 1963 Come Alive! Youve in the Pepsi Generation. 1967 Pepsi Pours it on

1886 Drink Coca-Cola 1904 Delicious and Refreshing 1905 Good All the Way Down 1906 The Drink of Quality 1906 The great National Temperance

you 1907 Delicious Coca-Cola, Sustain, Refreshes, Invigorates. and Crisp as Frost. 1909 Delicious, wholesome, Refreshing 1910 It Satisfies 1911 Its time to Drink Coca-Cola Substitutes. 1936 What Refreshment Ought to be 1938 The Best Friend Thirst Ever had 1939 Make Travel more Pleasant 1940 Bring in Your Thirst and Go Away Without it. 1941 Completely Refreshing 1942 Refreshment that Cant be Duplicated. 1943 The only think like Coca-Cola is Coca-Cola itself. Its the real 1944 How About A Coke

1920 Drink Pepsi-Cola. It will satisfy 1908 Sparkling-Harmless as Water

1949 Why taken less When Pepsi is 1912 Demand the Genuine-Refuse

1969 You got a lot to live and Pepsi thing. got a Lot to give. free 24 1945 Passport to Refreshment 1949 Coca-Cola. Along the highway

1973 Join the Pepsi People, feeling 1947 Coke knows no season

1975 Have a Pepsi Day 1978 Catch the Pepsi Spirit 1981 Pepsi Got your Taste for life. 1983 Pepsi now! 1984 Pepsi, the choice of a new Generation. 1992 Pepsi, Have it! 1993 Be Young, Have Fun, Drink Pepsi 1995 Nothing else is a Pepsi 1999 The joy of Cola.
19992006: "Yeh Dil Maange More!" 2003: "Its the Cola" "Dare for More 20062007: "Why You Doggin' Me" "Taste the one that's forever young" 20072008: "More Happy" "Taste the once that's forever young" 2000present: "pepsi ye pyaas heh bari 2008present: "Something For Everyone" 2009present: "Refresh Everything"/"Every Generation Refreshes the World" 2009present: "Yeh hai youngistaan meri jaan 2009present: "My Pepsi My Way" 2010present: "Every Pepsi Refreshes The World" 20102011 "Badal Do Zamana"

to Anywhere. 1951 Good food and Coca-Cola just Naturally go together. 1954 For people on the go 1956 Feel the difference 1957 Sign of a Good Taste 1958 The cold, Crisp taste of Coke 1959 be really refreshed listen to Connie Francis 1960 Relax with Coke 1961 Coke and food-Refreshing new feel. 1962 Coca-Cola Refreshes you best. 1965 Something more than a soft drink 1966 CokeAfter CokeAfter Coke 1970 its the real thing listen to the Carpenters 1971 Id like to buy the world a Coke 1976 Coke Adds life 1979 Have a Coke and Smile 1984 Just for the taste of it (Diet Coke) 1985 Weve got a taste for you (new Coke) 1986 Catch the Wave (New Coke) 1987 You cant beet the real thing 1989 Cant beat the feeling 1990 Cant beat the real thing 1993 Always Coca-Cola 25

2001 - Thanda Matalab Coca-Cola

2011present: "Change the game" 2011present "Dunya Hai Dil Walon Ki"

2003 Coca-Coal Enjoy

2005 - Make It Real. 2006 - The Coke Side of Life (used also in the UK) 2007 - Live on the Coke Side of Life (also used in the UK) 2009 - Open Happiness 2010 - Twist The Cap To Refreshment 2011 - Life Begins Here

When we compare the total slogans of the two companies we can first understand that Coke Company frequently changed its Slogans, some times trice and trice a year. But in case of Pepsi Company is not changing its slogans frequently. The slogans of Pepsi are not realistic and the company is exaggerating the features of the drinks and the company. Coke Company prepared its slogans in a realistic way and which is nearer to the features of the drinks and the company. Now Pepsi Company is not using any slogans for its drinks. Coke Company also not using the slogans that much frequently because the present day customers are taking care of the features of the product, taste of the products and packing of the products not the slogans of the Company.

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Comparison of the Logos of Pepsi and Coke:

From the above picture we can observe that from origin itself Pepsi Company has been changing its Logos but Coke Company has not at all changed its Logo form the beginning. From this we can understand that Pepsi Company has been trying to create some place in a differently with its new Logos 27

where as Coke Company tried to fix the same Logo as brand name. Previously the name of Pepsi is Pepsi-Cola, and now it is changed to Pepsi.

The reason for changing the Logos of Pepsi continuously was it merged many of the largest Food Companies with Pepsi like Tropicana, Fritos Lay and Galaxy Co. and etc. every time when merged with any Company it changed its Logos, because of this reason Pepsi became the largest food based products producer in the world. Coke Company is confined to the soft drink production only. As Coke Company has not changed its Logo, it is totally fixed in the minds of the people of the world. The people of the world have somewhat confusion on the Logo of Pepsi Company as it changed its Logos Continuously. Even though Pepsi Company changed its Logos continuously, it has not changed its slogans that much frequently. But in case of Coke Company, it has not at all changed its Logo but changed its slogans very frequently, sometimes thrice and trices a year. From this it is concluded that Pepsi Company tried to create a brand image of the Company in the minds of the customers using its different Logos but the same Slogans about the products. But in case of Coke Company it tried to create a brand image of the Company with the same Logo and different Slogans about the products. In this manner the two gaint Companies in the soft drinks industry compared and differentiated with each other. This cola wars became very common to the soft drink Companies. Soft drinks became a part of everyday life of the people in all over India and other countries of the world. The pop
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culture has made resisting the temptation of sugar based carbonated beverages virtually impossible for most. The soft drink war between Pepsi and Coke keep on going and increasing day by day.

They are using the different techniques to attract the customers towards their products mainly the cola products. The cola products are: Pepsi Pepsi Coke Coca-Cola Thumps up Coke Company has the two cola brands, whereas Pepsi has only one brand of cola. Pepsi Company is using excellent marketing strategies, such as celebrity appearances to sell their products where as Cokes realistic approach has placed them at the top of the soft drink industry, mainly in the case of cola sales. We can observe the cola war through the Advertising of the two companies in the television. They prepare the Ads to compete with one another. They will hire the famous persons and the celebrities for their Ads. They will invest lots of amount on advertising. Through the advertising only the sales of the soft drinks are in creased. Even though Pepsi trying to get the No-1 place in the soft drinks industry the statistics have shown that

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they are not able to get that position when compared to Coke Company for the past few years. In case of Advertising Pepsi dominated Coke because most of the customers are attracted toward the Pepsi Companys Ads only not to the Coke Companys Ads because Pepsi is spending more on advertising preparation when compared to Coke Company. Pepsi Company is using the famous celebrities when compared to Coke Company and this increases the influence of the advertising on the customers. Both companies are conducting their operations successfully in more than 200 countries in the world. The war is going on in every country all over the world. Pepsi changed its Logos frequently 9 times from its origin but Coke Company has not at all changed its Logos, this is a great thing that we can observe.

2.4 Financial Aspects

Any company, which has to start and operate its business, has to invest its capital in fixed assets and floating assets and it also has to meet the daily requirements of the company. However, depending on the nature of the business and the product being offered by the company, the ration of investment of capital in fixed and floating assets differs. Types of Capital Funds employed Working capital Institution finance
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Amount (In Lakhs) 60 15 40

Protection and Proper Use of Company Assets: PepsiCos technological resources, including computers, voicemail, e-mail and Internet access, are to be used for proper purposes in a manner consistent with the Code and all other Company policies, including those related to discrimination, harassment and intellectual property. As with all PepsiCo assets, these resources are to be used for business purposes. It is generally not PepsiCos intent to monitor Internet access or messages on the voicemail and email systems. However, the Company reserves the right to do so in appropriate circumstances, consistent with applicable laws and regulations. If you access to PepsiCo.com, we cam get the information regarding the precautions steps to prohibit unauthorized access to the system. You should safeguard your passwords or other means of entry. Employees must not reproduce software assets licensed to PepsiCo, use illegally obtained software or distribute the original software media or unauthorized copies of software which the Company does not own or license. Financial comparison of Pepsi and Coke: During 2008, the two companies turned in a remarkable similar set of financial results. Criteria Coke Company Pepsi Company

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Sales Growth 12.0 % Gross Margin % Net Margin 10.6 % Cash-to-Debit ration 0.33 %

12.8 % 69.6 % 10.7 % 0.55 % 61.1

Thus, Pepsi Company is either tied or has the edge over Coke in ever category except Gross Margins. The sales growth rate of Pepsi is growing faster than Coke Company. This is because of the strategies adopted by the Pepsi Company. Even though 92% of the people through out the world know the brand name of Coke, they are not able to capture the highest market share when compared to Pepsi. Pepsi has a better ration of cash versus debt. Pepsi Company is the leader of the snacks producer in the world having 46% of the total market share and more than seven times the size of its next largest competitor, whereas Coke has not at all entered in to this field. In this way also Pepsi dominated Coke in the field of snacks production.

2.5 Consequences of coke wars in the recent past

There is a cut throat compatition in the current soft drink market because of it there exist a coke war between the two cold drinks
32

giants and because of the compatition the companies started compromising on the part of their social responsiblities. On 5 August 2003 report of the Centre for Science and Environment, New Delhi. A CSE test found 12 softdrink brands of Coke and its global rival Pepsi contained pesticides and insecticides in excess of the European Economic Commissions limit. The Parliaments immediate reaction: ban on the brands on its premises. On 8 August 2003 , a West Bengal government report said sludge and liquid effluents from Cokes plants at Dankuni, Taratala and Jalpaiguri and Pepsis at Narendrapur contained toxic metals and the carcinogen cadmium. On 6 August 2003, Kerala State Pollution Control Board had confirmed that Cokes bottling plant had indeed been polluting the groundwater Palakkad plant. Six months ago, CSE tests had found pesticides in and agricultural land in and around its

leading packaged water brands, including those produced by Coke and Pepsi.While reports of pesticides and insecticides presence in Coke and Pepsi may now detect consumers from enjoying the soft-drinks, people living in and around Cokes bottling plants in India have been feeling the heat in a different way. In Kerala, Uttar Pradesh, Rajasthan, Tamil Nadu and Maharashtra, people have been protesting against Cokes bottling
33

plants because theyve depleted groundwater level and damaged the environment. But Plachimadas villagers have a different story to tell. Three years ago, the little patch of land in the green, picturesque rolling hills of Palakkad yielded 50 sacks of rice and 1,500 coconuts a year. It provided work for dozens of labourers. Then Coke arrived and built a 40-acre bottling plant nearby. In his last harvest, Shahul Hameed, owner of a small holding, could manage only five sacks of rice and just 200 coconuts. His irrigation wells have run dry, thanks to Coke drawing up to 1.5 million litres of water daily through its deep wells to bottle Coke, Fanta, Sprite and the drink the locals call, without irony, Thumbs-Up. But the cruellest twist is that while the plant bottles a mineral water, local people who can never afford it are now being forced to walk up to 10 kilometre twice a day for a pot of drinking water. On 7 April 2008, the Perumatty panchayat revoked the

factorys licence to alleviate the villagers sufferings despite losing almost half of its annual income of Rs 7,00,000. But Cokes lawyers got the suspension order revoked by appealing to the local self-government department. Coke could operate its plant till 6 August but on that day KPCB made its report public, confirming the existence of carcinogenic contaminants in the waste. Now, the government has postponed the hearing, saying its necessary to (get) SPCBs report confirmed.

34

Coke, of course, denies responsibility for all this, and it has the support the local authorities; they argue that the company creates jobs. Politicians even threatened the agitationists with dire consequences if they didnt stop. Though Coke claims to have carried out the mandatory Environment Impact Assessment report before setting up the plant, none so far has seen the report. Waites repeated requests to the company to produce a copy of the report met with failure. In UP, sustained protests against Coke have prompted the Central Pollution Control Board to initiate a probe into the pollution being caused allegedly by Bharat Coca-Cola Bottling North East Private Ltd a bottling arm of Coke in Mehdiganj, 20 km from Varanasi. Trouble started in early May when a court found the firm guilty of not paying land revenue worth more than Rs 15 lakh. An equal amount of penalty under Section 47 (A) of the Indian Stamps Act has also been imposed on the company. The case, filed in April 2001 by the UP government, was the outcome of lobbying by protesting local residents. They allege the plant has been discharging hazardous wastes and heavy consumption of groundwater has depleted the water level, from 15 feet to 40 feet. Result: severe drinking water scarcity.

2.6 FUTURE PLANS

35

Every company will have the future plans; in the same way Pepsi Company also has its future plans to increase its sales and the market share in the soft drinks industry. After a long research work they will go for the new plans. Some of the future plans were given below. In order to capture Indian food market PepsiCo India is planning to launch indigenous food products. PepsiCo is going to make an investment of around $110 million in its beverages business in India to increase the production capacity and the quality of the products. On future plans, the company will launch Lipton ice tea all over the country this summer. Gatorade, its sports drink, will also be bottled in India this year. The company is also seriously considering bringing some products from Quaker Oats into the country. PepsiCos beverage business has also decided to invest $220 million in the current year. Indra Nooyi, PepsiCos Indian face, says the $27-billion foods and beverages giant will invest $300m-$500 millions into its India operations over the next five years and clearly indicated that the fast-growing snack foods business was going to be the growth driver in the country. Clearly, the snacks business which has grown five-fold in the past four years is lifting PepsiCos fortunes. The CEO of Pepsi India, Nooyi says the company is now looking at tripling this business in the next three years or so, and is even testing Leher Kurkure for the US and UK markets.
36

It is learnt that the total investment for the beverage business of PepsiCo India for the next three year will be around $350 million. PepsiCo India on Monday announced a Rs 1,000crore investment for this calendar year that will see the food and beverage major expanding its manufacturing capacity and supply chain, among others, in the country. In this way Pepsi India Company is taking steps to increase their sales and their market share in the soft drinks industry.

DATA ANALYSIS AND INTERPRETATION

3.1 INTRODUCTION
The main part of the report i.e. Analysis part is covered in this chapter. Investigator conducted survey in Retail outlets in 3 various areas. After conducting the survey, the total collected information has been interpreted using a structured format. The required information is derived from that format and later interpretation and analysis have been done using that information. This analysis part contains tables and graphical representation. Only histograms have been used in this graphical representation. We can understand the information easily through
37

the graphs and can come to a conclusion from the final information from this chapter. Because of that reason this chapter is very important in the entire study of the project. Without this analysis and interpretation we can not give the essence of the study easily. This chapter is very useful to conclude the total survey and also can understand the position of the company and the opinion of the retailers and customers regarding the company. This chapter is totally based on the primary data collected through the survey conducted on the retailers of various markets. This survey is also is very useful to the company also to understand and take the further steps to improve their performance and through that they can get a good market share in the soft drink industry. In this chapter the interpretation is also provided along with the analysis of the collected data. The company this study. DETAILS OF THE SURVEY CONDUCTED
Analysis of the questionnaires data gives us some information about the both the companies in the Lucknow city. There were 10 questions in the questionnaire which is analyzed here.

may

get

the

valuable

information

through

this

interpretation. Because of this reason the investigator has chosen

Name of the Product Pepsi Mirinda Orange Mirinda Lemon Thumps up 38

No. of bottles (Availability) 100 45 25 65

Mountain Dew Slice Aquafina Water Diet Pepsi

60 8 20 0

Products of PepsiCo available in Shops of Lucknow Market

Numbers of bottles ( Availablity in shops) These are the products which are available in the lucknow City soft drinks shops. The no. shown is the number of retailers those have the product of the PepsiCo brand. In this questionnaire survey it was found that all soft drink shop owners have Pepsi, which is very commonly available at all shops
No of Bottles Sold per Day in various individual Clusters: Brand Pepsi
60

ALAMBAGH 52 44

AMINABAD 45 35

GOMTI NAGAR 42 50
Pepsi Coke

Average 46 43

No. of bottles sold per day on avrage

Coke 40
30 20 10 0 Srikakulam

50

Amadalavalasa

Narasannapeta

39

Average

ALAMBAGH

AMINABAD

GOMTI NAGAR

AVERAGE

It is found from table that on an average 52 bottles of Pepsi brands and 44 bottles of Coke brands are sold in Srikakulam market, 45 bottles of Pepsi brands and 35 bottles of Coke brands are sold in Amadalavalasa market, 42 bottles of Pepsi brands and 50 Bottles of Coke brands are sold in Narasannapeta market per day. On average of these three markets 46 bottles of Pepsi brands and 43 bottles of Coke brands are sold per day. So it is concluded that Pepsi Company dominated Coke Company in these areas in terms of no. of bottles sold per day.

Highest prefrable brands-

40

Product Name

Preferable brands

Sprite Pepsi Mirinda Orange 7 Up

40 38 25 25

This graph shows that customer askes the Sprite more to the retailer then Pepsi, in the same way Mirinda Orange and 7 Up. This are the products which sold by retailers regularly.

Name of Brand

Volume Per Day

Pepsi Coca-Cola Others

45 50 05

This graph shows that average no. of bottles of both the brands sold in one day from the Raipur. Coca Cola brand has sales more products in one day

Satisfaction levels with Pepsi

41

S.No 1 2 3 4

Market ALAMBAGH AMINABAD GOMTINAGAR Average

Highly satisfied 60 65 70 65

Satisfied 40 30 28 33

Not satisfied 0 5 2 2

Satisfaction levels with Pepsi Service

80 70 60 50 40 30 20 10 0 Srikakulam 1 Amadalavalasa 2 Narasannapeta 3 Average 4

Highly satisfied Satisfied Not satisfied

ALAMBAGH

AMINABAD

GOMTI NAGAR

AVERAGE

It is found from table that in all these areas majority of the retailers are highly satisfied with the Pepsi service and less number of the retailers is not satisfied with the service of the Pepsi Company. On an average of all the markets most of the retailers i.e.65% is highly satisfied with the Pepsi service (supply), 33% retailers are satisfied with the service of the Pepsi and the remaining 2% are not satisfied with the service of the Pepsi Company. So it is concluded that the retailers are highly satisfied with the service (supply) of the Pepsi Company.
42

Satisfaction of levels with Coke Companys Service (Supply):

S.No 1 2 3 4 Market ALAMBAGH AMINABAD GOMTI NAGAR Average Highly satisfied 45 40 45 43 Satisfied 50 55 50 52 Not satisfied 5 5 5 5

Satisfaction with Coke service

60 50 40 30 20 10 0 Srikakulam Amadalavalasa 2 Narasannapeta 3 Average 4 1 Highly satisfied Satisfied Not satisfied

ALAMBAGH

AMINABAD

GOMTI NAGAR

AVERAGE

It is found from table that on an average of all the markets 65% retailers only are highly satisfied with the Coke service (supply), 50% retailers are satisfied with the service of the Coke and the remaining 5% are not satisfied with the service of the Coke Company. So it is concluded that the service of the Coke Company is moderate when compared to Pepsi Company. So here

43

Pepsi dominated Coke in terms of the service (supply) to the retailers.

Effectiveness on Consumer Promotions offered by both Companies:

S.No 1 2 3 4 Market ALAMBAGH AMINABAD GOMTI NAGAR Average Pepsi 61 57 60 59 Coke 39 43 40 41

Effectiveness on Consumer Promotions offered by both Consumer offers offered by both companies Companies
70 60 50 40 30 20 10 0 Srikakulam 1 ALAMBAGH Amadalavalasa Narasannapeta Average 2 AMINABAD 3 GOMTI NAGAR 4 Pepsi Coke

It is found from the table that majority of the retailers of all these areas are satisfied with Pepsi Company for its consumer promotions offered to the consumers. On an average most of the i.e. 59% is satisfied with the consumer promotion offers offered to
44

the consumers and the remaining retailer i.e. 41% of the retailers are satisfied with the Coke consumer promotions offered by the Coke company offered to the consumers. So it is concluded that Pepsi dominated Coke in these areas in terms of consumers promotions offered to the consumers.

Table Comparing the increase in sales after an effective Pramotional advertisements S.No 1 2 3 4 Market ALAMBAGH AMINABAD GOMTI NAGAR Average High 55 30 40 42 Less 40 63 48 50 Same 5 7 12 8

Comparing the increase in sales

70 60 50 40 30 20 10 0 Srikakulam Amadalavalasa Narasannapeta Average 4 1 2 3 High Less Same

ALAMBAGH

AMINABAD

GOMTI NAGAR

45

It is found from the table 3.13 that on an average most of the retailers (50%) is saying that the increase in sales when compared to 2008 to 2009 is less, 42% of the retailers are saying high and the remaining 4% retailers are saying same (no increase). So it is concluded that the increase in the sales from 2008-2009 is moderate and the chance of increase in sales is high in future.
Table

Pepsi Visi coolers and other coolers available in the Market

S.No 1 2 3 4 Market ALAMBAGH AMINABAD GOMTI NAGAR Average Pepsi cooler 32 21 31 28 Coke+ other coolers 68 79 69 72

Visi Coolers availability in various clusters

90 80 70 60 50 40 30 20 10 0 Srikakulam Amadalavalasa Narasannapeta Average 4 1 2 3 ALAMBAGH AMINABAD GOMTI

Pepsi cooler Coke+ other coolers

46

It is found from the table 3.15 that on an average most of the retailers (72%) are using the Coke and the other coolers in their stores and only 28% of the retailers are using the Pepsi Visi Coolers in their retail stores. they are also not taking care of the working condition of the Visi Coolers in a proper manner. So it is conclude that the Pepsi Company is not providing the sufficient Pepsi Visi Coolers to the retailer and when compared to the Pepsi Visi Coolers the Coke Visi Coolers are more in the market where the survey was conducted.

Table The mode of payment for the soft drinks [Cash or Credit] S.No 1 2 3 Market ALAMBAGH AMINABAD GOMTI NAGAR Pepsi Cash 100 100 100 Pepsi Credit 0 0 0 Coke Cash 100 100 100 Coke Credit 0 0 0

Soft Drinks Supply on Cash or Credit

120 100 80 60 40 20 0 Pepsi Cash Pepsi Credit Coke Cash Coke Credit Brands 1 Srikakulam 2 AmadalavalasaAlambagh 3 NarasannapetaAminabad

Gomti Nagar

47

It is found from the table 3.17 that on an average both the companies Pepsi and Coke Companies are supplying their products only on cash payment and they are not providing any credits to the retailers. The company people will supply the products to the retailer and they will return after some time and will collect the money for those products. They will not give more time for the retailers to give the payment for the drinks. So it is concluded that the Companies, both Pepsi and Coke are not at all providing any credit to the retailers while purchasing the soft drinks.

Table Consumption of Soft Drinks at Home and at Shop: S.No 1 2 3 4 Market ALAMBAGH AMINABAD GOMTI NAGAR Average At Shop 80 70 75 75 At Home 20 30 25 25

Soft Drinks consumption Places 90 80 70 60 50 40 30 20 10 0 Srikakulam 1 Amadalavalasa 2 Market Narasannapeta 3

At Shop At Home

48

AMINABAD

ALAMBAGH

GOMTI NAGAR

It is found from the table 3.18 that on an average most of the Customers (75%) are consuming the soft drinks at the shop itself and the remaining 25% of the customers are consuming the soft drinks at home. The customers who are consuming soft drinks at home are generally purchasing the Pet Bottles and the Glass bottled drinks are consumed at the shop. So it is concluded that the consumption of soft drinks is more at shops when compared to the consumption at home.

The comparison of Pepsi and Coke in the three surveyed areas: The survey is conducted in the three market areas existing in Lucknow city. According to the survey conducted, both the companies Pepsi and Coke have the same (similar) market share. When compared to Coke, Pepsi has somewhat high market share according to the survey. Many theses are declaring the different market shares of the both companies but nobody can decide the exact market shares of the two companies, because these shares are not stable and rapidly changing. When we compare the brands availability of both companies in these three markets, Coke brands availability is
49

more when compared to Pepsi Company Brands. When we analysis the reason for this, Pepsi Company is not concentrating on all their brands and concentrating on the most selling brands and they are supplying those brands more. In case of Coke Company, it is concentrating on all their brands that mean they are trying to satisfy all the customers by providing/supplying all its products. Some Pepsi brands are available in some places only, for example Mountain Dew. In case of the top 4 most selling brands in these surveyed area, out of 3 market areas in 2 markets Pepsi brands occupied the first place. From this we can say that Pepsi brands are in top selling drinks position in the market. The reason for this is, Pepsi Company is spending more money on advertising with to film stars, sports stars and the celebrities. Because of this reason many people are attracted towards the Pepsi Companys brands. When we come to the service (supply) to the retailers, most of the retailers (65%) are highly satisfied, 33% retailers are satisfied (moderate) and the remaining 2% retailers are not satisfied with the service of the Pepsi Companys service. In case of Coke Companys service 43% of the retailers are highly satisfied, 52% of the retailers are satisfied (moderate) and the remaining 5% of the retailers are not satisfied. From this information we can understand that Pepsi Companys services to the retailers are good when compared to Coke. Even though Pepsi Company is not providing all their products to the retailers, it is supplying the limited products in a good way. In case of Coke
50

Company, even though Company is providing all its products, it is not able to supply those products in a proper manner that is in time delivery supplying sufficient drinks to the retailers. The schemes offered to the retailers are important in case of all the products, because retailers are the makers and breakers of the companys profits. When we come to the soft drink industry it has its own importance. In the surveyed areas on an average 56% of the retailers are satisfied with the trade schemes offered by the Coke Company and the remaining 44% of the retailers are satisfied with the Pepsi Companys trade schemes offered to the retailers. That means Coke is providing good trade schemes like with every case of cool drinks on bottle free along with the general profits, free gifts, appreciations to the retailers who sold more drinks in that market area etc. are good when compared to Pepsi Company. To improve the good will and loyalty of the retailers Pepsi Company has to adopt the new strategies to develop the new schemes. The schemes offered to the consumers are important, because the consumers are attracted towards the soft drinks by seeing the offers. These offers will create an anxiety that we may win that gift by drinking that particular brand drinks. To utilize this company will introduce these consumer promotional offers. In the surveyed areas on an average 59 percent of the retailers are satisfied with the promotional offers offered by the Pepsi Company and the remaining 41 percent of the retailers are satisfied with the consumer promotional offers offered by the
51

Coke Company. From this we can understand that Pepsi Company is providing good consumer promotional offers when compared to Coke Company. Because of this attractive consumer promotional offers most of the consumers are being attracted toward the towards the Pepsi Companys products. To know whether a retailer is selling the Pepsi Company products or Coke Companys and to promote the sales of their Company drinks the companies are providing the companys Visi Coolers (from which all the drinks which are kept in the Cooler are visible to outside through a glass door) to the retailers for free of cost. Only 28% of the retailers are using the Pepsi Companies Visi Coolers and remaining 72% of the retailers are using the Coke and other coolers in their retail store. From this we can understand that when compared to Pepsi Company, Coke Company provides more no. of Visi Coolers to the retailers. To improve the sales of Pepsi Company they have to provide the Visi Coolers to the retailers. By observing all the above things we cant determine who the market leader of the soft drinks industry, Pepsi or Coke. This is fluctuating continuously in the market.

4.1 SWOT Analysis for the soft drink industry

Strength

Brand Equity Wide World Market Brand Attachment

52

Competitive Advantage

Weakness

Strong Competition Alternative Change Failover

Opportunity

Introduce New Failover Segment Encourage their supplier Take More Profited

Threat

Substitution Suppliers Buyers

Brand Equity
According to this case Coke and Pepsi both cumulative spending on advertising. Coke and Pepsi established brand identity over a long period of time. Now these brand become culture of almost every countries and in the case of Coke become part of World Culture So this is very strong point of the these brand for establish their identity and their consumer attachment

Wide World Market

53

 According to the case Coke and Pepsi capture wide world market. Its impact on globalization. These both brand hold global market, and other brand just capture just their areas market.

Brand Attachment
Coke and Pepsi both establish almost for more than a century and consumers have emotional attachment with these two brands. Consumers identify these two brands for distance, these all things are the brand strategies. Advertisement create cozy relationship with their consumers they feel relax to use these brands.

Competitive Advantage
In these both companies they invests heave amount which other competitor do not invest in their company.

Strong Competition
According to this case the first and biggest week point both brand is strong competition between Coke and Pepsi. Much expansive advertisement for their brand equity

Alternative

In this case the second important thing is that the alternative of the CSDs. The local brand in different areas

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available and these local brands are very low cost and low price.

Consumers using non-CSDs brand. They are moving nonCSDs brands.

Introduce New Brands

For Coke and Pepsi have more opportunity to introduce new brands in different taste. These both brand Coke and Pepsi have very strong brand.

Consumers have interest in both brands, and each new brand have market value very strong then other. Coke and Pepsi have almost world culture and some new strategy they can easily capture the market.

Segment

Coke and Pepsi have focus on customer segmentation, for each segment they can easily serve. They can easily search new segment for their products. Franchise system is the best way to search new segmentation, which have very strong segment? And how can they serve in those segments.

Segmentation proved very easily approach for their targeted customers.

4.2 FINDINGS
1. Coke Company

dominated Pepsi Company in terms of

availability of its brands in Alambagh, Aminabad and Gomti Nagar Clusters.

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2. Pepsi Company dominated Coke Company in these three Clusters in terms of number of bottles sold per day. 3. Most of the retailers (56%) require the daily supply (service) from the soft drink Companies, which indicates the high sales of the soft drinks. 4. Most of the retailers are highly satisfied with the service (supply) of Pepsi Company. 5. The service of Coke Company is moderate when compared to Pepsi Company, so here Pepsi dominated Coke Company in terms of Service (supply) to the retailers. 6. Coke Company dominated Pepsi Company in these three Clusters in terms of trade schemes offered to the retailers. 7. Pepsi Company dominated Coke Company in these three Clusters in terms of consumer promotional offers offered to the consumers. 8. There will be influence of the T.V Ads on the increase in sales of the soft drinks a lot.
9. The increase in the volume of sales after the effective

pramotion is moderate and the chance of increase is high in future.

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10.

The

consumption of fruit based soft drinks has been highly increased and goes on increasing. The reason for this is the awareness of the health consciousness in the people. 11. Pepsi Company is not providing the sufficient Pepsi Visi Coolers to the retailer and when compared to the Pepsi Visi Coolers the Coke Visi Coolers are more in these clusters, where the survey was conducted. 12. Consumpti

on of the soft drinks became a common thing to all the group of people mainly the youth. Because of this reason the sales of the soft drinks goes on increasing. 13. The

Companies, both Pepsi and Coke are not at all providing any credit to the retailers while purchasing the soft drinks. 14. compared to the consumption at home. 15. The The

consumption of soft drinks is more at the shops when

dealers are not providing the sufficient information regarding the schemes and the new products to the retailers.

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4.3 SUGGESTIONS 1. As most of the retailers require the daily supply, the Company has to supply the drinks daily to the retailers, so that they can serve the consumers according to their requirements. If they dont supply the drinks daily and sufficiently the sales will be decreased. 2. As the retailers are highly satisfied with Pepsi Companys service and not that much satisfied with Coke Companys service (supply), Pepsi Company can use this opportunity to attract the retailers towards Pepsi by explaining the quality of Pepsi Companys service to increase the sales of the company. 3. The trade schemes offered by Pepsi Company to the retailers should be increased and also profitable to the retailers. If they are satisfied with the offers then they will promote the drinks more and the profit will be more to the company. 4. Pepsi Company should introduce the new and attractive consumer promotional offer. Then the consumers will be attracted towards the Pepsi brands. Then the profits of the company will be increased.

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5. As the T.V Ads are influencing the soft drink sales, the company should design the new ads in an attractive way. The ads should be change frequently. The different ads should be shown in different regions according to the culture of that area. 6. As the health consciousness is growing, the people are consuming the fruit based soft drinks. Company has to conduct some programs to bring more awareness of the fruit based soft dinks and its benefits to the consumers. Then the sales of the fruit based soft drinks sales will be increased. 7. Pepsi Visi coolers are supplied very less to the retailers when compared to coke. The company has to supply more Visi coolers to the retailers to increase their business. The company also has to check the condition of the Visi coolers regularly and if any problems are there then they have to rectify those problems. 8. The soft drink companies are not providing the credit. This is a problem to the retailers because they have to invest the amount before the sales of the soft dinks. This may be the problem for some retailers with low investment. So it is better to provide the credit system to the retailers. 9. When compared to the previous years the consumption of the soft drinks at home increased. The pet bottles are mostly consumed at home, so the sales can be increased by
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providing some more offers on the pet bottles and promote the sales of the pet bottles.

4.4 CONCLUSION The project was a great experience for me in order to study the marketing and strategic aspects in the world. It was a great opportunity for me to do the project work in the end of the course because till now we learned the theory regarding the marketing and the marketing related concepts, but now we got the chance to implement that theoretical knowledge to do the project and got the practical experience in the field. Soft drink industry is a vast growing industry when compared to many other industries. This industry is a place where two major players are there in the world. Doing my project in cola industries is a great experience as it gave me lot of opportunity and scope to understand the soft drink industry and its strategic, marketing structure and distribution channels. Lot of valuable information regarding the company and also the retailers, has been collected from the survey, which helped me clearly to understand the real problems faced by the
60

marketers to distribute and also make retailers to sell the companys products in the market. From the analysis of the data collected from the retailers the investigator got some important findings regarding the company and the industry. For those findings some of the suggestions made to the company were really applicable for the growth and benefit for the company in order to increase its market share and to become the market leader in the soft drink industry, because a large number of competitors craving for the same market. Thus, finally it can say that the Company needs a lot of improved distribution channel management activities along with various promotional strategies for the customers to get the top position in the soft drink industry.
QUESTIONNAIRE Name of the Student: of Survey: College & Town: Date

1.

Name of the shop/owner: A. Address: B. Phone:

2.

What are the Pepsi company drinks are available in your shop? Pepsi Mirinda Lemon 7 Up Slice Evervess Soda Aquafina Water Total 61 Diet Pepsi Mountain Dew Mirinda orange

3.

What are the Coke Company drinks available in shop? Thumps Up Coca- Cola Sprite Kinely Soda Limca Minute Made Diet Coke Total Maaza Kinely Water Fanta

4.

Top brands Purchased by consumer in your shop? 1st ______________ 3rd ______________ 2nd ______________ 4th _______________

5.

What are your Sales in terms of Bottle per day in your shop? A. Total No. of bottles________________ B. Pepsi Bottles Sold ________________ C. Coke Bottles sold ________________

6.

How do you require the Service (supply) by soft drink Companies? A. Daily C. Weekly 2 times B. Alternate Days

7.

Please indicate your satisfaction level with Pepsi Service (supply)? A. Highly satisfied Not satisfied B. Satisfied C.

62

8.

Please indicate your satisfaction level with Coke Service (supply)? A. Highly satisfied C. Not satisfied B. Satisfied

9.

Trade Schemes offered by which company is good to you? Pepsi Coke

10.

Consumer Promotions offered by which company is good in your opinion? Pepsi Coke

11.

Do you feel T.V advertisements by drink companies help in more sales of Drinks? Yes No

12.

What is the influence of T.V Ads on sales of soft drinks in your shop? Increased Decreased Same

13.

What is Percentage of juice based soft dinks sales in your shop?

63

30% 10% 14.

20%

Utilization pattern of Pepsi Visi Cooler? Full of Pepsi Drinks Full of Pepsi+ Coke Drinks Pepsi Drinks+ Other Packs

15.

Why did you keep other products in Pepsi Cooler? Electrical Bill No Own Cooler

16.

What is the mode of payment to purchase the soft drinks? Pepsi Credit Coke Credit Cash Cash

17.

What is the percentage of consumption of soft drinks at your shop and consumer residence? Shop Home

BIBLIOGRAPHY
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Books Referred
1. 2. Philip kotler VS Ram Swami Marketing Management Marketing Advertising

3. Chunawalla S.A

Web Sites Referred:

WWW.Pepsi.com WWW.pepsiindia.com WWW.coke.com WWW.economictimes.com WWW.justdrinks.com
http://www.coca-colaindia.com

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