“Comparative study of customer preference towards

News Paper Dainik Jagran & Hindustan in

Ghazipur City”

Survey Project Report

Submitted to

Veer Bahadur Singh Purvanchal University

In partial fulfillment of the requirements of the degree of

Bachelor of Business Administration

Prepared by Training Supervisor: Mohammad Tarique Mr. Arif SultanB.B.A 4th Semester (Lecturer) Roll No: 00981

Department of Business

Administration

2010

Technical Education & Research Institute

Post-Graduate College,

Ghazipur-233001

1

DECLARATION

I, Mohammad Tarique, hereby declare that this research project report entitled “A

Comparative study of customer preference towards News Paper Daink Jagran V/S

Hindustan” has been prepared by me under the supervision of Mr. Arif Sultan.

This research project report is my bona fide work and has not been submitted in

any form to any university or Institute for the award of any degree or diploma prior to the

under mentioned date. I bear the entire responsibility of submission of this project report.

MohammadTarique

Preface

2

“Learning Categories you, and practicing on that learning specialize you”

The importance of any academic courses would gain advantage and the acceptance of the

true form, only through practical experiences. Hence it is quite necessary to put theories

as into task.

Someone has greatly said that practical knowledge is far better than classroom teaching.

During this project I fully realized this and come to know about the present real world

.The present report entitled as “A Study of Competition and Media Planning by Soft

Drink Manufactures in India’ a fruitful outcome of my research done during the course

of my fourth semester of MBA programmed. This research report forms an integral part

of my MBA degree course at Technical Education Research Institute, P.G. College,

Ghazipur. The soft drink industry is actually made up of two major manufacturing

systems that, taken together, bring soft drinks to the market. These two systems fall into

distinct categories:

(1) Flavoring syrup and concentrate manufacturing and

(2) Soft drink manufacturing.

The supply chain is largely dependent on the syrup producer, as this is the driver for most

downstream operations. the majority of the bottled soft drinks follow a similar product

life cycle, moving from syrup producer, to bottler, to distributor (if used), to merchant, to

final consumer. The locations of the syrup manufacturers and the bottlers are closely

linked to both the locations of strategic raw materials and major population centers in the

United States and/or areas that see above-average temperatures, where demand for the

soft drinks tends to be highest. Once soft drinks are bottled and ready for distribution, a

variety of distribution channels are leveraged to get the final product to the end consumer.

The industry as a whole faces challenges as a result of the slumping economy and

changes in consumers’ consumption patterns due to increased health consciousness.

3

Marketing is an important component of the industry chain, used to generate demand and

build consumer loyalty. it has undergone a number of changes over the last five years due

to efforts to reduce advertising directed at children, to introduce new types of media, and

to update marketing messages for consumers who are looking for more healthful

alternatives. Areas of growing interest for all industry players are the African-American

and Hispanic markets, which have been identified as key consumers and growth markets.

While the industry adapts to changes in consumption executive summary the soft drink

supply Chain Consumer

The first chapter is dedicated to the introduction of the Media Planning, history of Soft

Drink, companies of Soft Drink. It also deals the factors affecting Brand Image of Soft

Drink. This chapter gives detail about the Media Planning of Soft Drink with reference to

Indian industries. It also deals the challenges and problems come at the time of Media

planning of Two Wheeler. The second chapter deals with the Objective of the study and

Importance of the study& also included the Scope of the study. The third chapter is a

summary of the various research methodologies used for the development of the project.

The methodology used for the implementation of the assigned project is based on

secondary data. The whole study is based on secondary data. The fourth chapter deals the

data analysis and interpretation Chapter five deals with the findings and recommendations

related to the research report. The conclusion& Limitation of the project is provided in

chapter six and this chapter also deals with the Bibliography & Reference of this project.

Aditi Singh

ACKNOWLEDGEMENT

4

Before I thank anybody for the compilation of this work I would like to thank Almighty

for providing guidance and me all the necessary help. It is grace only that I have

completed this work.

An understanding of the study like this is never the outcome of the efforts of an

individual; rather it bears the imprint of a number of individuals who directly helped me

in completing the present study.

First & foremost, I would like to express my regard to Mr. Rahul Anand Singh (H.O.D.

of M.B.A.) and Dr. Neetu Singh, the training & placement-in-charge and the

honorable Readers of M.B.A. Department for this constant encouragement and support. I

would also like to express immense gratitude towards supervisor Dr. Neetu Singh, for

providing the knowledge, guidance and cooperation in research report.

I am also sincerely thankful to all my friends for giving me opportunity and resource to

work on the research report and giving me support whenever necessary.

Aditi Singh

INTRODUCTION

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Media planning

Media planning is generally the task of a media agency and entails finding media

platforms for a client's brand or product to use. The job of media planning involves

determining the best combination of media to achieve the marketing campaign objectives.

In the process of planning the media planner needs to answer questions such as:

• How many of the audience can be reached through the various media?

• On which media (and ad vehicles) should the ads be placed?

• How frequent should the ads be placed?

• How much money should be spent in each medium?

Choosing which media or type of advertising to use is sometimes tricky for small firms

with limited budgets and know-how. Large-market television and newspapers are often

too expensive for a company that services only a small area (although local newspapers

can be used). Magazines, unless local, usually cover too much territory to be cost-

efficient for a small firm, although some national publications offer regional or city

editions. Metropolitan radio stations present the same problems as TV and metro

newspapers; however, in smaller markets, the local radio station and newspaper may

sufficiently cover a small firm's audience.

Components of a media plan• Define the marketing problem. Where is the business coming from and where is

the potential for increased business? Does the ad need to reach everybody or only

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a select group of consumers? How often is the product used? How much product

loyalty exists?

• Translate the marketing requirements into media objectives. Must the ad reach

people in a wide area? Then mass media, like newspaper and radio, might work. If

the target market is a select group in a defined geographic area, then direct mail

could be best.

• Define a media solution by formulating media strategies. For example, the rule of

thumb is that a print ad must run three times before it gets noticed. Radio

advertising is most effective when run at certain times of the day or around certain

programs, depending on what market is being reached.

Advertising media includes• Television ( TVC, television commercial)

• Radio

• Newspapers

• Magazines (consumer and trade)

• Outdoor billboards

• Public transportation

• Yellow Pages

• Direct mail (DM)

• Digital advertising (such as web-based, mobile and mobile applications)

• Search Engine Marketing (SEM, keyword marketing in search engines)

• Specialty advertising (on items such as matchbooks, pencils, calendars, telephone

pads, shopping bags and so on)

• Other media (catalogs, samples, handouts, brochures, newsletters and so on)

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Factors to consider when comparing various advertising media• Reach - expressed as a percentage, reach is the number of individuals (or homes)

to expose the product to through media scheduled over a period of time.

• Frequency - using specific media, how many times, on average, should the

individuals in the target audience be exposed to the advertising message? It takes

an average of three or more exposures to an advertising message before

consumers take action.

• Cost per thousand - How much will it cost to reach a thousand prospective

customers (a method used in comparing print media)? To determine a

publication's cost per thousand, also known as CPM, divide the cost of the

advertising by the publication's circulation in thousands.

• Cost per point - how much will it cost to buy one rating point your target

audience, a method used in comparing broadcast media. One rating point equals 1

percent of the target audience. Divide the cost of the schedule being considered by

the number of rating points it delivers.

• Impact - does the medium in question offer full opportunities for appealing to the

appropriate senses, such as sight and hearing, in its graphic design and production

quality?

• Selectivity - to what degree can the message be restricted to those people who are

known to be the most logical prospects?

ADVERTISING AND SALES PROMOTION

ADVERTISING

‘As defined by the American Marketing Association (AMA), Advertising is ay from of

non-personal presentation of goods, services or ideas for action, openly paid for by an

8

identified sponsor. ‘Advertising today is a worldwide phenomenon. It is important at the

outset to recognize that many advertisers use advertisements for many purposes with

many different possible effects. Advertisements can be recognized s paid non-personal

communication forms used with persuasive intent by identified sources through various

media. Advertising are most commonly associated with the mass media of newspapers,

magazines, cinema, television, and radio, although they frequently flourish in the other

forms such as billboards, poster, and direct mail as well and finally advertisements are

overwhelmingly used with persuasive intend. That is the advertisers are striving to alter

our behavior and or levels of awareness, knowledge and attitude, and so on in a manner

that would be beneficial to them.

BASIC FEATURES OF ADVERTISING

On the basis of various definitions it has certain basic features such as:

1. It is a mass non-personal communication.

2. It is a matter of record.

3. It persuades buyers to purchase the goods advertised.

4. It is a mass paid communication.

5. The communication media is diverse such as print (newspapers and magazines)

Advertisers who something use

• Advertising agencies and are sometimes assisted by

• Support Organizations sent their messages through

• Media (generally mass) to potential

• Consumers of the product, service.

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Advertising is a key part of marketing, but far from being (as is often assumed) the sum

of it. Advertising is the use of media to inform consumers about something and or to

persuade them to do something in effect; it brings product and consumers together, and

then modulates the relationship between them.

WHAT IS ADVERTISING

It is a mass communication of information intended to persuade buyer to buy product

with a view of maximizing a company’s profits. The elements are.

• It is a Mass Communication reaching large number of customers.

• It makes mass production possible.

• It is a non-personal communication.

• It is a commercial communication.

• It is speedy communication.

• In today’s competitive world. It is an essential communication.

FUNCTIONS OF ADVERTISING

For many firms advertising is the dominant element of the promotional mix – particulars

for those manufacturers who produce convenience goods such as detergent, non –

prescription drugs, cosmetics, soft drinks and grocery products. Advertising is also used

extensively by maters of automobiles, home appliances, etc, to introduce new product and

new product features its uses its attributes, pt availability etc. Advertising can also help to

convince potential buyers that a firm’s product or service is superior to competitor’s

10

product in make in quality, in price etc. it can create brand image and reduce the

likelihood of brand switching even when competitors lower their prices or offer some

attractive incentives.

Advertising is particularly effective in certain other spheres too such as:

i) When consumer awareness of products or service is at a minimum.

ii) When sales are increasing for all terms in an industry.

iii) When a product is new and incorporates technological advance not strong and.

iv) When primary buying motive exists.

It performance the following functions:

• Promotion of sales

• Introduction of new product awareness.

• Mass production facilitation

• Carry out research

• Education of people.

Broadly speaking, advertising may be classified into two categories viz., product and

Inst Product Advertising:

The main purpose of such advertising is to inform and stimulate the market about the

advertiser’s products of services and to sell these. Thus types of advertising usually

promote specific, trended products in such a manner as to make the brands seam more

desirable. It is used by business government organization and private non-business

organizations to promote the uses features, images and benefits of their services and

11

products. Product advertising is sub-divided into direct action and indirect action

advertising, Direct action product advertising wages the buyer to take action at once, ice

he seeks a quick response to the advertisement which may be to order the product by

mail, or mailing a coupon, or he may promptly purchase in a retail store in response to

prince reduction during clearance sale. Product advertising is sub-divided into direct &

indirect action advertising & product advertising aims at informing persons about what a

products is what it does, how it is used and where it can be purchased. On the other hand

selective advertising is made to meet the selective demand for a particular brand or type is

product.

Institutional Advertising:

It is designed to create a proper attitude towards the sellers to build company image or

goodwill rather than to sell specific product or service. Its purpose is to create a frame of

intuitional advertising. Mind and to implant feeling favorable to the advertisers company.

Its assignment is to make friends for the institution or organization. It is sub-divided into

three categories: patronage, public, relations and public service institutional advertising.

i) In patronage institutional advertising the manufacturer tells his prospects and customer

about himself his policies and lives personnel. The appeals to the patronage motivation of

buyers. If successful, he convinces buyers that his operation entitles him to the money

spent by them.

ii) Public relations institutional advertising is used to create a favorable image of the firm

among employees, stock-holders or the general public.

iii) Public service institutional advertising wages public support.

ADVERTISING OBJECTIVES

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The long term objectives of advertising are broad and general, and concern the co Most

companies regard advertising main objective as hat of proving support to personal selling

and other forms of promotion. But advertising is a highly versatile communications tools

and may therefore by used for achieving various short and long term objectives. Among

These objectives are the following:

1. To do the entire selling job (as in mail order marketing).

2. To introduce a new product (by building brand awareness among potential buyers).

3. To force middlemen to handle the product (pull strategy).

4. To build brand preference 9by making it more difficult for middleman to sell

substitutes).

5. To remind users to buy the product (retentive strategy).

6. To publicize some change in marketing strategy (e.g., a price change, a new model or

an improvement in the product).

7. To provide rationalization (i.e. socially acceptable excuses).

8. To combat or neutralize competitors advertising.

9. To improve the moral of dealers and/or sales people (by showing that the company is

doing its share of promotion).

10. To acquaint buyers and prospects with the new uses of the product (to extend the

PLC).

BENEFITS

The functions of advertisement, and that purpose its ethics, may be discussion below:

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1. It leads o cheaper prices. "No advertiser could live in the highly

competitive arena of modern business if his methods of selling were more

costly than those of hisrivals."ntribution advertising should make to the

achievement of overall company objectives.

2. It acquaints the public with the features of the goods and advantages which

buyers will enjoy.

3. It increases demand for commodities and this results in increased

production. Advertising:

a) Creates and stimulates demand opens and expands the markets;

b) Creates goodwill which loads to an increase in sales volume;

c) Reduces marketing costs, particularly product selling costs.

d) Satisfied consumer demands by placing in the market what he needs.

1. It reduces distribution expenses in as much as it plays the part of thousands of salesman

at a home. Information on a mass scale relieves the necessity of expenditure on sales

promotion staff, and quicker and wider distribution leads to diminishing of the

distribution costs.

2. It ensures the consumers better quality of goods. A good name is the breath of the life

to an advertiser.

3. By paying the way for large scale production and increased industrialization,

advertising contributes its quota to the profit of the companies the prosperity of the

shareholder the uplifts of the wage earners and the solution of the unemployment

problem.

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4. It raises the standard of living of the general public by impelling it to use to articles of

modern types which may add to his material well being. "Modern advertising has made

the luxuries of yesterday the necessities of today ..................... It is a positive creative

force in business. It makes two blades of grass grow in the business world where one

grew before. It establishes the goodwill of the concern for the test articles produced by it

and in course of time they sell like hot cakes consumer search for satisfaction of their

needs when they purchase goods what they want from its beauty, superiority, economy,

comfort, approval, popularity, power, safety, convenience, sexual gratification and so on.

The manufactures therefore tries to improve this goodwill and reputation by knowing the

buyer behavior.

WHY & WHEN TO ADVERTISE

Advertising as a tool to marketing not only reaches those who buy, but also those whose

opinions or authority is counted for example a manufacturer of marble tiles and building

boards advertises not only to people who intend to build houses but also to architect and

engineers. While the manufacturers of pharmaceuticals products advertise to doctors as

well as to the general public. At time it is necessary for a manufacturer or a concern to

advertise things which it does not sell but which when sold stimulates the sales of its own

product. There are concerns like electric heaters, iron etc. because the use of these

increases the demand for their products. Advertising should be used only when it

promises to bring good result more economically and efficiently as compared to other

means of selling. There are goods for which much time and efforts are required in

creating a demand by sending salesman to prospective buyers than by simply advertising

them. In the early days of the cash register in America it was sold by specially trained

salesman who called on the prospective users and had the difficult task of convincing

15

them that they could no longer carry on with the old methods, and that they urgently

needed a cash register. In our country certain publishers have found it less costly to sell

their books by sending salesman from house to house among prospective buyers than to

advertise them. In these two examples the cost of creating demand would be too high if

attempted by advertising alone under such circumstances advertising is used to make the

salesman acceptable to the people they call upon to increase the confidence of the public

in the house. Naturals when there are good profits competitors will be attracted and they

should be kicked out as and when sufficient capital is available by advertising on a large

scale. Immediate result may not justify the increased expenditure but it will no doubt

secure future sales.

DESIGNING ADVERTISING CAMPAIGN:

Advertising is an organized series of advertising messages. It has been defined as "a

planned, co-ordinate series of promotional efforts built around a central theme and

designed to reach specified goals." In other words, it is an orderly planned effort

consisting of related but self – contained and independent advertisements. The campaign

may appear in one more media. It has single theme or keynote idea and a single objective

or goal. Thus, "a unified theme of content provides psychological continuity throughout

the campaign while visual and oral similarity provides physical continuity. In short run,

all campaign want pre-determined psychological reaction in the long run, practically all

campaigns have sales goal. The series of advertisements used in the campaign must be

integrated with the sales Promotional efforts and with the activities of the sales force.

Campaigns vary in length some may run only for a few days, other for weeks, yet other

for a season or the entire year. Usually a range of 3 to 6 months includes many

campaigns. Many factors influences campaign length such as competitors advertising

media, policies, and seasonal falls curves of the product involved the size of the

16

advertising funds, campaign objectives and the nature of the advertisers marketing

programmed.

Selecting the Media:

Media selection is an important since it costs time space and money various factors

influence this selection, the most fundamental being the nature of the target market

segment, the type of the product and the cost involved. The distinctive characteristics of

various media are also important. Therefore management should focus its attention on

media compatibility with advertising objectives.

Media Form

1. Press Advertising or Print

i) Newspapers City, Small town, Sundays, Daily, weekly, Fortnightly, quarterlies,

financial and annuals, English, vernacular or regional languages.

ii) Magazines General or special, illustrated or otherwise, English, Hindi, Regional

language.

iii) Trade & Technical Journals, Industrial year books, commercial, directories, telephone,

Directories, references books & annuals. Circulated all over the country and among the

industrialist and business magnates.

2. Direct Mail Circulars, catalogues, leaflets,

Brochures, booklets, folders, colanders, blotters, diaries & other printed material.

3. Outdoor or Traffic Poster and bills on walls, railways

Stations platforms outside public buildings.

17

INTRODUCTION TO SOFT DRINK

18

The soft drink industry is actually made up of two major manufacturing systems that,

taken together, bring soft drinks to the market. These two systems fall into distinct

categories:

(1) Flavoring syrup and concentrate manufacturing and

(2) Soft drink manufacturing.

The supply chain is largely dependent on the syrup producer, as this is the driver for most

downstream operations. the majority of the bottled soft drinks follow a similar product

life cycle, moving from syrup producer, to bottler, to distributor (if used), to merchant, to

final consumer. The locations of the syrup manufacturers and the bottlers are closely

linked to both the locations of strategic raw materials and major population centers in the

United States and/or areas that see above-average temperatures, where demand for the

soft drinks tends to be highest. Once soft drinks are bottled and ready for distribution, a

variety of distribution channels are leveraged to get the final product to the end consumer.

The industry as a whole faces challenges as a result of the slumping economy and

changes in consumers’ consumption patterns due to increased health consciousness.

Marketing is an important component of the industry chain, used to generate demand and

build consumer loyalty. it has undergone a number of changes over the last five years due

to efforts to reduce advertising directed at children, to introduce new types of media, and

to update marketing messages for consumers who are looking for more healthful

alternatives. Areas of growing interest for all industry players are the African-American

and Hispanic markets, which have been identified as key consumers and growth markets.

While the industry adapts to changes in consumption executive summary the soft drink

supply Chain Consumer

Breaking down the Chain: A Guide to the soft drink industry

19

Patterns and new forms of media, researchers are investigating the impact marketing

practices and pricing tactics have on consumers’ consumption patterns. research shows

that marketing for any product plays a significant role in setting norms and encouraging

behavior among children, and that young children and economically disadvantaged

consumers are the most vulnerable to food and beverage advertising. in addition, research

has found that when it comes to discouraging consumption of sugar-sweetened beverages,

a price increase is more effective than education interventions. the soft drink industry is

also in the middle of a growing policy debate in the united states regarding the taxation of

sugar-sweetened beverages. Surveys show mixed feelings about an tax; a poll in India

indicated more support if the proceeds went toward health-related initiatives. Meanwhile,

the soft drink industry has responded strongly to proposed taxes. Internally, the soft drink

industry is responding with efforts to influence consumer behavior by introducing

smaller-size packaging, encouraging active lifestyles, and looking into alternative, no

caloric sweeteners. Externally, lobbyist and other activist groups have successfully

gathered support to defeat many of the proposed taxes.

Soft Drink Terms

There are many overlapping terms used to describe soft drinks. In this report, we tried to

remain precise and consistent with our terminology. In figures and tables, we occasionally

deviate from these terms due to the terminology used by the original data sources.

Here are some of the most common terms:

Soft drink: any type of nonalcoholic beverage produced by a soft drink manufacturer;

includes bottled water, but not tap water Sugar-sweetened beverage (SSB): term used by

public health advocates to describe a soft drink containing caloric sweetener (e.g., sugar,

20

high-fructose corn syrup) No diet: refers to beverages that contain calories, usually from

an added sweetener Diet: refers to beverages with zero calories and usually sweetened

with no caloric sweeteners Carbonated soft drink (CSD): type of soft drink that is

carbonated; includes both no diet and diet soft drinks.

Fruit beverage: type of soft drink that either contains fruit juice or is fruit-flavored Juice

drink: soft drink that contains juice and other ingredients Fruit-flavored drink: soft drink

that is flavored to taste like fruit but does not contain juice Bottled: refers to beverages

that are packaged in bottles or cans Fountain: refers to beverages that are produced on

demand at a dispenser

Market Leaders

Flavoring Syrup and Concentrate Manufacturing Industry the India flavoring syrup and

concentrate manufacturing market (see figure 1) is dominated by two main players, who

made up 73% of the total India market share in 2010: the Coca-Cola Company (40%) and

PepsiCo, inc. (33%).3 the remaining 27% of the market is composed of a variety of

smaller companies. Soft Drink Manufacturing Industry the soft drink Manufacturing

market in the united states is dominated by three players, who accounted for 66% of the

total market share in 2010: the Coca-Cola Company (28·6%), PepsiCo, inc. (26·8%), and

the dry Pepper Snapple Group (8·6%).4 the remaining 36% of the market includes many

small soft drink manufacturing companies Among the other companies: JJ Cott

Corporation (3·3% market share) – this Toronto-based company is the world’s largest

manufacturer of retailer-brand (private-label) soft drinks and the fourth largest soft drink

maker in the world. Customers include Safeway, J Sainsbury, and Wal-Mart (until 2012,

when the distribution agreement is expected to be terminated). National Beverage

Corporation (1·3%) – this Florida-based company is a holding company that focuses on

21

holding and developing strong regional brands, especially within the carbonated soft

drink segment. its managed subsidiaries include faygo Beverages, Lacroix Water, ever

fresh Beverages, and Shasta Beverages.

Major Markets

The final products of soft drink production are distributed to six main segments.

Supermarkets and general merchandisers represent the largest channel the ultimate

consumer utilizes to purchase soft drinks, accounting for 48% of the market. The

remaining five segments included in the soft drink market are:

Food Service and Drinking Places

20% of market

Includes fast-food outlets, takeout outlets, full-service restaurants, and bars.

Convenience Stores and Gas Stations

12% of market

Includes stand-alone convenience stores and stores attached to gas stations.

Vending Machine Operations

11% of market

Includes vending machines in transportation outlets or other areas of convenience.

22

23

Introduction to coca cola

The Coca-Cola Company was first established in 1886 by Dr John Styth Pemberton.

Today, the company is the world's leading manufacturer in the beverage industry,

operating globally in more than 200 countries with its head office located in Atlanta,

USA. It produces more than 300 beverage brands and over 1.06 billion drinks are

consumed per day around the world.

It has already ventured regionally out of Atlanta to other states of United States since the

late 19th century and its signature contour bottle was first manufactured in the early 20th century to

distinguish themselves and assuring the genuine Coca-Cola. Though the company grew rapidly and roared into some

European countries during the 1900s, its presence worldwide grew swiftly only after World War II.

Year after year, the company has been discovering new foreign markets to bring higher

profits as to fulfill its ultimate obligation to provide consistently attractive returns to the

owners of the company and to enlarge its customer base in order to achieve economies of

scale. Due to strong competition with Pepsi-Cola, Coca-Cola wants to reduce its

dependence on United States market, which is their similar domestic market, as to reduce

its risk and increase its global market share by going international. Presently, the

24

company has already reached six billion consumers in nearly two hundred countries.

Coca-Cola Company has been very successful in international marketing effort.

Aggressive advertising, branding and market segmentation have played an important part

in the success. It has portrayed itself as fun, playfulness, freedom, lifestyle and the

international appeal of Coca-Cola was embodied by a 1971 commercial, where a group of

young people from all over the world to a hilltop in Italy to sing “I’ll like to buy the world a

Coke”. The company has been sponsoring big events, like Olympics, Sea Games, FIFA Cup, and International Film

Festivals all over the world to create awareness, credibility and to brand itself as world-class company. It also makes

big donations to organizations, charities and involvement in the communities. These activities have aided Coca-Cola in

creating a positive image and consumers’ perception toward the company.

Though the company makes the world its target market, segmenting by diverse consumer

preferences would still required helping Coca-Cola to serve the consumers better. As

different segments of different countries have various preferences or cultures, Coca-Cola

tried to expand with new flavors, brands and even reduced the sugar contents in its Coke,

to suit all the different segments. This often increases the acceptance of new drinks that are

specially designed for them. Coca-Cola entered foreign markets in various ways. The most common modes of entry are

direct exporting, licensing and franchising.

The HISTORY

The first Coca-Cola recipe was invented in a drugstore in Columbus, Georgia by John

Pemberton, originally as a coca wine called Pemberton's French Wine Coca in 1885. He

25

may have been inspired by the formidable success of Vin Mariani, a European coca wine.

In 1886, when Atlanta and Fulton County passed prohibition legislation, Pemberton

responded by developing Coca-Cola, essentially a non-alcoholic version of French Wine

Cola. The first sales were at Jacob's Pharmacy in Atlanta, Georgia, on May 8, 1886. It

was initially sold as a patent medicine for five cents a glass at soda fountains, which were

popular in the United States at the time due to the belief that carbonated water was good

for the health. Pemberton claimed Coca-Cola cured many diseases, including morphine

addiction, dyspepsia, neurasthenia, headache, and impotence. Pemberton ran the first

advertisement for the beverage on May 29 of the same year in the Atlanta Journal. By

1888, three versions of Coca-Cola—sold by three separate businesses—were on the

market. Asa Griggs Candler acquired a stake in Pemberton's company in 1887 and

incorporated it as the Coca Cola Company in 1888. The same year, while suffering from

an ongoing addiction to morphine, Pemberton sold the rights a second time to four more

businessmen: J.C. Mayfield, A.O. Murphey, C.O. Mullahy and E.H. Bloodworth.

Meanwhile, Pemberton's alcoholic son Charley Pemberton began selling his own version

of the product. John Pemberton declared that the name "Coca-Cola" belonged to Charley,

but the other two manufacturers could continue to use the formula. So, in the

summer of 1888, Candler sold his beverage under the names Yum Yum and

Koke. After both of them failed to catch on, Candler set out to establish a

legal claim to Coca-Cola in late 1888, in order to force his two

competitors out of the business. Candler purchased exclusive rights to the

formula from John Pemberton, Margaret Dozier and Woolfolk Walker .

However, in 1914, Dozier came forward to claim her signature on the bill of sale had

been forged, and subsequent analysis has indicated John Pemberton's signature was most

likely a forgery as well. In 1892 Candler incorporated a second company, The Coca-Cola

26

Company (the current corporation), and in 1910 Candler had the earliest records of the

company burned, further obscuring its legal origins. By the time of its 50th anniversary,

the drink had reached the status of a national icon in the USA. In 1935, it was certified

kosher by Rabbi Tobias Geffen, after the company made minor changes in the sourcing of

some ingredients. Coca-Cola was sold in bottles for the first time on March 12, 1894. The

first outdoor wall advertisement was painted in the same year as well in Georgia. The

Cans of Coke first appeared in 1955. The first bottling of Coca-Cola occurred in

Vicksburg, Mississippi, at the Biedenharn Candy Company in 1891. Its proprietor was

Joseph A. Biedenharn. The original bottles were Biedenharn bottles, very different from

the much later hobble-skirt design that is now so familiar. Asa Candler was tentative

about bottling the drink, but two entrepreneurs from Chattanooga, Tennessee, Benjamin

F. Thomas and Joseph B. Whitehead, proposed the idea and were so persuasive that

Candler signed a contract giving them control of the procedure for only one dollar.

Candler never collected his dollar, but in 1899 Chattanooga became the site of the first

Coca-Cola bottling company. The loosely termed contract proved to be problematic for

the company for decades to come. Legal matters were not helped by the decision of the

bottlers to subcontract to other companies, effectively becoming parent bottlers.

Twentieth Century Landmarks

By the time of its 50th anniversary, the soft drink had reached the status of a national icon

in the USA. In 1935, it was certified kosher by Atlanta Rabbi Tobias

Geffen, after the company made minor changes in the sourcing of some

ingredients. The longest running commercial Coca-Cola soda fountain

anywhere was Atlanta's Fleeman's Pharmacy, which first opened its doors in

1914. Jack Fleeman took over the pharmacy from his father and ran it till

1995; closing it after 81 years.

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On July 12, 1944, the one-billionth gallon of Coca-Cola syrup was manufactured by The

Coca-Cola Company. The Cans of Coke first appeared in 1955.

New Coke

On April 23, 1985, Coca-Cola, amid much publicity, attempted to change the formula of

the drink with "New Coke". Follow-up taste tests revealed that most

consumers preferred the taste of New Coke to both Coke and Pepsi, but

Coca-Cola management was unprepared for the public's nostalgia for the

old drink, leading to a backlash. The company gave in to protests and

returned to a variation of the old formula , with high-fructose replacing

cane sugar, under the name Coca-Cola Classic on July 10, 1985.

Twenty-first Century

On February 7, 2005, the Coca-Cola Company announced that in the second quarter of

2005 they planned to launch a Diet Coke product sweetened with the

artificial sweetener sucralose ("Splenda"), the same sweetener

currently used in Pepsi One. On March 21, 2005, it announced another

diet product, Coca-Cola Zero, sweetened partly with a blend of

Aspartame and Acesulfame potassium. In 2007, Coca-Cola began to

sell a new "healthy soda": Diet Coke with vitamins B6, B12, Magnesium,

Niacin, and zinc, marketed as "Diet Coke Plus."On July 5, 2005, it was

revealed that Coca-Cola would resume operations in Iraq for the first time

since the Arab League boycotted the company in 1968. In April 2007, in

Canada, the name "Coca-Cola Classic" was changed back to "Coca-Cola."

The word "Classic" was truncated because "New Coke" was no longer in

production, eliminating the need to differentiate between the two. The

formula remained unchanged. In January 2009, Coca-Cola stopped printing

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the word "Classic" on the labels of 16-ounce bottles sold in parts of the

southeastern United States . The change is part of a larger strategy to

rejuvenate the product's image. In November 2009, due to a dispute over

wholesale prices of Coca-Cola products, Costco stopped restocking its

shelves with Coke and Diet Coke.

PRODUCTS OF COCA-COLA

Coca-Cola

Coca-Cola is a carbonated soft drink sold in stores, restaurants, and vending

machines in more than 200 countries. It is produced by The Coca-Cola

Company of Atlanta , Georgia, and is often referred to simply as Coke.

Thumps-up

Thumps Up is a brand of cola in India. It was introduced in 1977 to offset the expulsion

of The Coca-Cola Company from India. The brand was bought out by

Coca-Cola who re-launched it in order to compete against Pepsi.

Sprite

Sprite is a transparent, lemon-lime flavored, caffeine-free soft drink, produced

by the Coca-Cola Company. It was introduced in the United

States in 1961. This was Coke's response to the popularity of 7 UP. It

comes in a primarily silver, green, and blue can or a green transparent bottle

with a primarily green and blue label.

Fanta

Fanta is a global brand of fruit-flavored carbonated drinks from the Coca-Cola

Company. There are over 100 flavors worldwide. The drink debuted

in Nazi Germany in 1941 and originally sold only in Europe.

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Maaza

Maaza is a Coca-Cola fruit drink brand marketed in India and Bangladesh, the most

popular drink being the mango variety so much that over the years, the

Maaza brand has become synonymous with Mango. Coca-Cola has also

launched Maaza in orange and pineapple variants.

Executive summary

Giant soft drink company Coca Cola has come under intense scrutiny by investors due to

its inability to effectively carry out its marketing program. Consequently it is seeking the

help of Polarities Marketing Company Pty Ltd to develop a professional marketing plan

which will help the business achieve its objectives more effectively and efficiently, and

inevitably regain their iron fist reign on the soft drink industry. When establishing a re-

birthed marketing plan every aspect of the marketing plan must be critically examined

and thoroughly researched. This consists of examining market research, auditing business

and current situation (situation analysis) and carefully scrutinizing the soft drink industry

and possibilities for Coca Cola in the market. Once Coca Cola have carefully analyzed

the internal and external business environment and critically examined the industry in

general the most suitable marketing strategies will be selected and these strategies will be

administered by effectively and continually monitoring external threats and opportunities

and revising internal efficiency procedures.

Situation Analysis

Market Analysis:

The market analysis investigates both the internal and external business environment. It is

vital that Coca cola carefully monitor both the internal and external aspects regarding it’s

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business as both the internal and external environment and their respective influences will

be decisive traits in relation to Coke’s success and survival in the soft drink industry.

Internal Business Environment

The internal business environment and its influence is that which is to some extent within

the business’s control. The main attributes in the internal environment include efficiency

in the production process, through management skills and effective communication

channels. To effectively control and monitor the internal business environment, Coke

must conduct continual appraisals of the business’s operations and readily act upon any

factors, which cause inefficiencies in any phase of the production and consumer process.

External Business Environment

The External business environment and its influences are usually powerful forces that can

affect a whole industry and, in fact, a whole economy. Changes in the external

environment will create opportunities or threats in the market place Coca cola must be

aware off. Fluctuations in the economy, changing customer attitudes and values, and

demographic patterns heavily influence the success of Coca Cola’s products on the

market and the reception they receive from the consumers

The Mission Statement of the Coca Cola Company

Its mission statement is to maximize shareowner value over time. In order to achieve this

mission, we must create value for all the constraints we serve, including our consumers,

our customers, our bottlers, and our communities.

The Coca Cola Company creates value by executing comprehensive business

strategy guided by six key beliefs:

1. Consumer demand drives everything we do.

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2. Brand Coca Cola is the core of our business

3. We will serve consumers a broad selection of the non alcoholic ready-to–drink

Beverages they want to drink throughout the day.

4. We will be the best marketers in the world.

5. We will think and act locally.

6. We will lead as a model corporate citizen.

The ultimate objectives of our business strategy are to increase volume, expand our Share

of worldwide nonalcoholic ready to drink beverages sales, maximize our long-term Cash

flows, and create economic value added by improving economic profit. The Coca Cola

system has more than 16 million customers around the world that sells or serves our

products directly to consumers. We keenly focus on enhancing value for these customers

and helping them grow their beverage businesses. We strive to understand each

customer’s business and needs, whether that customer is a sophisticated retailer in a

developed market a kiosk owner in an emerging market. There are nearly 6 million

people in the world who are potential consumers of our Company’s product. Ultimately,

our success in achieving our mission depends on our ability to satisfy more of their

beverage consumption demands and our ability to add value for customers. We achieve

this when we place the right products in the right markets at the right time.

Product Life cycle:

When referring to each and every product or service ever placed before the consumer i.e.

in the long term all the existing products and services are dead. For e.g.:- Replacement of

Ford Cortina ( a highly successful car) by Ford Sierra, the replacement of sierra by the

Ford Monde and the replacement of the old Monde by the new Monde in 2001. So every

product is born, grows, matures and dies. So in the commercial market place products and

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services are created, launched and withdrawn in a process known as Product Life Cycle.

To be able to market its product properly, a business must be aware of the product life

cycle of its product. The standard product life cycle tends to have five phases:

Development, Introduction, Growth, Maturity and Decline. Coca-Cola is currently in the

maturity stage, which is evidenced primarily by the fact that they have a large, loyal

group of stable customers. Furthermore, cost management, product differentiation and

marketing have become more important as growth slows and market share becomes the

key determinant of profitability. In foreign markets the product life cycle is in more of a

growth trend Coke's advantage in this area is mainly due to its establishment strong

branding and it is now able to use this area of stable profitability to subsidize the domestic

Cola Wars.

Market Share:

Being the biggest company in the soft drink industry, Coca Cola enjoys the largest market

Share. This company controls about 59% of the world market.

SWOT ANALYSIS.

Strength

Strength has been operating successfully for over a century. Is known world-wide and

operates in more than 200 countries. Coca-Cola has a large share of the cola segment -

holding approximately 85 per cent. The Coca-Cola Company is the most recognized

trademark in the world. Coca-Cola has been a complex part of world culture for a very

long time. The product's image is loaded with over-romanticizing, and this is an image

many people have taken deeply to heart. The Coca-Cola image is displayed on T-shirts,

hats, and collectible memorabilia. This extremely recognizable branding is one of Coca-

Cola's greatest strengths. Additionally, Coca-Cola's bottling system is one of their greatest

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strengths. It allows them to conduct business on a global scale while at the same time

maintain a local approach. The bottling companies are locally owned and operated by

independent business people who are authorized to sell products of the Coca-Cola

Company.

Weakness

Weaknesses for any business need to be both minimized and monitored in order to

effectively achieve productivity and efficiency in their business’s activities, Coke is no

exception. Although domestic business as well as many international markets are

thriving (volumes in Latin America were up 12%), Coca-Cola has recently reported some

"declines in unit case volumes in Indonesia and Thailand due to reduced consumer

purchasing power."Coca-Cola on the other side has effects on the teeth which is an issue

for health care. It also has got sugar by which continuous drinking of Coca-Cola may

cause health problems. Being addicted to Coca-Cola also is a health problem, because

drinking of Coca-Cola daily has an effect on your body after few years.

Opportunity

Have significant growth opportunities. Has sufficient capital to expand. Has the potential

to innovate and differentiate the company's products to sustain a competitive advantage.

May merge with other global businesses to eliminate competitors. Capable of expanding

into other markets other than the soft drink market

Threats

Currently, the threat of new viable competitors in the carbonated soft drink industry is not

very substantial. The threat of substitutes, however, is a very real threat. The soft drink

industry is very strong, but consumers are not necessarily married to it. Possible

substitutes that continuously put pressure on both Pepsi and Coke include tea, coffee,

juices, milk, and hot chocolate. Even though Coca-Cola and Pepsi control nearly 40% of

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the entire beverage market, the changing health-consciousness of the market could have a

serious affect. Of course, both Coke and Pepsi have already diversified into these

markets, allowing them to have further significant market shares and offset any losses

incurred due to fluctuations in the market. Consumer buying power also represents a key

threat in the industry. The rivalry between Pepsi and Coke has produce a very slow

moving industry in which management must continuously respond to the changing

attitudes and demands of their consumers or face losing market share to the competition.

Furthermore, consumers can easily switch to other beverages with little cost or

consequence.

Target Market

The company's beverages are generally for all consumers. However, there are some

brands, which target specific consumers. For example, Coca-Cola's diet soft drinks are

targeted at consumers who are older in age, between the years of 25 and 39. PowerAde

sports water target those who are fit, healthy and do sport. Winnie the Pooh sipper cap

Juice Drink target children between the ages 5-12. This type of market approach refers to

market segmentation. The Coca-Cola Company when advertising has a primary target

market of those who are 13-24, and a secondary market of 10-39.

Objectives/Goals

Coca-Cola main objectives are to supply everyone their favorites drink and to satisfy the

consumer needs and wants. Coca-Cola second main objectives are to provide profit to the

shareholders and increase the market share.

Marketing Objectives

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The objective is the starting point of the marketing plan. Objectives should seek to answer

the question 'Where do we want to go?'The purposes of objectives include:

To enable a company to control its marketing plan.

To help to motivate individuals and teams to reach a common goal.

To provide an agreed, consistent focus for all functions of an organization.

All objectives should be SMART i.e. Specific, Measurable, Achievable,

Realistic, and Timed.

- Specific - Be precise about what you are going to achieve

- Measurable - Quantify you objectives

- Achievable - Are you attempting too much?

- Realistic - Do you have the resource to make the objective happen (men, money,

machines, materials, and minutes)?

- Timed - State when you will achieve the objective (within a month? By January

2010?)

1. Market Share Objectives: To gain 61% of the market for soft drinks industry by 2009.

2. Profitability Objectives: To achieve a 20% return on capital employed.

3. Promotional Objectives: To increase awareness of the product on the market.

4. Objectives for Survival: To survive the current market war between competitors.

5. Objectives for Growth: To increase the size of the worldwide Coca Cola enterprise by

10%.

Marketing strategies and marketing mix

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Marketing mix:

• Product

The Coca-Cola Company's products include beverage concentrates and syrups, with the

main product being finished beverages. The business has over 300 brands of beverages

around the world with the main ones being Coke, Fanta, Sprite, Frutopia 100% Fruit

Juice, and PowerAde. The Coca-Cola Company packages its beverages into plastic

bottles of sizes 2 liters, 1.25 litres, 600mL and 300mL. These are also available in

aluminium cans of 375mL. Coca-Cola is the most well known trademark, recognized by

94 per cent of the world's population. The business is very successful and holds a very

good reputation.

Marketing strategies for product

The Coca-Cola Company uses marketing strategies to differentiate its product from its

competitors to gain a competitive advantage. These are listed in the table below.

Marketing strategy Explanation of marketing strategy Extension/product differentiation In

2002, the Coca-Cola Company extended the products of Coke and developed the new

products Coke with lemon and Vanilla Coke. This extension:·Responded to consumer

demands,enerated sales and profit. Innovation In 2001, Coca-Cola had innovated and

developed the introduction of purchasing the company's products from vending machines

via SMS messaging. In 2002, the company innovated and came up with a new packaging

idea, the Fridge Pack. The Fridge Pack consists of cans packed 2-by-6. This innovation

has increased consumer awareness and preference. Increased rate of consumption and

profitability.

Price

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The prices of Coca-Cola's products vary according to the brand and the size.

Pricing Methods/Pricing strategies

The Coca-Cola Company's products are sold in retail stores, convenient stores, petrol

stations etc. The pricing methods/strategies are set by those the company sells to. Petrol

stations and convenient stores usually sell Coca-Cola products at a fixed price. However,

retail outlet uses pricing methods and pricing strategies when selling Coca-Cola products.

Pricing methods

Pricing method Explanation of pricing method Competition-based pricing Coca-Cola

products are usually priced below, above or equal to its competitors' prices. For example,

during Easter (2003) sale periods (Coca-Cola vs. Pepsi):Coca-Cola soft drinks 2L -

$1.68Pepsi soft drinks 2L - $1.87Coca-Cola soft drinks 375 x 18 - $9.98Pepsi soft drinks

375 x 24 - $9.98 Discount price Coca-Cola products are often marked down during sale

periods and special occasions. This will:·Generate sales Increase profits

Pricing strategies

Pricing strategy Explanation of pricing strategy Meet-the-competition pricing The Coca-

Cola products pricing are set around the same level as its competitors. Psychological

pricing Most of the Coca-Cola products use this method of pricing. For example, for a

pack of 375mL x 18 cans of Coca-Cola soft drinks it is priced at $9.98 instead of

$10.00.This pricing strategy makes consumers perceive the products to be cheaper.

Place and Distribution:

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The place P of the marketing mix refers to distribution of the product- the ways of getting

the product to the market. The distribution of products starts with the producer and ends

with the consumer. One key element of the “Place/Distribution” aspect is the respective

distribution channels that Coca Cola has elected to transport and sell its product. Selecting

the most appropriate distribution channel is important, as the choice will determine sales

levels and costs.

The choice for a distribution channel for any business depends on numerous factors,

these include:

• How far away the customers are;

• The type of product being transported;

• The lead times required; and;

• The costs associated with transport;

There are four types of distribution strategies that Coca Cola could have chosen from,

these are: intensive, selective, exclusive and direct distribution. It is apparent from the

popularity of the Coca Cola’s product on the market that the business in the past used the

method of intensive distribution as the product is available at every possible outlet. From

supermarkets to service stations to your local corner shop, anywhere you go you will find

the Coca Cola products.

Physical Distribution Issues

Coca Cola needs to consider a number of issues relating to the physical distribution of its

soft drink products. The five components of physical distribution are, order processing,

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warehousing, materials handling, inventory control, transportation. Coca Cola must

further try to balance their operations with more efficient distribution channels. Order

Processing- Coca Cola cannot delay their processes for consumer deliveries (i.e. delivery

to selling centers), as this is inefficient business functioning and is portrays a flawed

image of the product and overall business.

Warehousing and inventory control-

Warehousing of Coca Cola products is necessary. Inventory control is another important

aspect of distribution as inventory makes up a large percentage of businesses assets

Materials handling- this deals with physically handling the product and using machinery

such as forklifts and conveyor belts. When holding products, then Coca Cola has

benefited from purchasing or renting respective machinery.

Transportation-

Transporting Coca Cola products is the one most important components of physical

distribution. Electing either to transport the sports drink by air, rail, road or water depends

on the market (i.e. global, or domestic?) and depends on the associated costs. The most

beneficial transportation method for Coca Cola would be ROAD if the product were

moved around from storage to the cost center

Promotion:

In today’s competitive environment, having the right product at the right place in the right

place at the right time may still not be enough to be successful. Effective communication

with the target market is essential for the success of the product and business. Promotion

is the p of the marketing mix designed to inform the marketplace.The promotional mix is

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the combination of personal selling, advertising, sales promotion and public relations that

it uses in its marketing plan. Above the line promotions refers to mainstream media:

Advertising through common media such as television, radio, transport, and billboards

and in newspapers and magazines. Coca Cola has used this as the main form of promotion

for extensive range of products. Although advertising is usually very expensive, it is the

most effective way of reminding and exposing potential customers to Coca Cola

Products.

ADVERTISEMENT STRATEGY

Coca Cola Company use different mediums

• Print media

• Pos material

• TVs commercial

• Billboards and holdings

Print Media

They often use print media for advertisement. They have a separate department for print

Media.

POS Material

Pos material mean point of sale material this includes: posters and stickers display in the

Stores and in different areas.

TV Commercials

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As everybody know that TV is a most common entertaining medium so TV commercials

is one of the most attractive way of doing advertisement. So Coca Cola Company does

regular TV commercials on different channels.

Billboards and Holdings

Coca cola is very much conscious about their billboards and holdings. They have so many

Sites in different locations for their billbug

Implementing, Monitoring and Controlling

Financial Forecasts

Financial forecasts are predictions of future events relating strictly to expected costs and

revenue costs for future years. There are five major marketing expenditures, which

include research costs, product development costs, product costs, promotion costs and

distribution costs. Sales force composite is the most logical method in forecasting

revenue. This involves estimates from individual salespeople to sell to work out a total for

the whole business. Once these costs and revenues are forecasted, management can then

decide which combination of marketing mix strategies will deliver the most sales revenue

at the lowest cost.

Implementing

Implementation is the process of turning plans into actions, and involves all the activities

that put the marketing plan to work. Successful implementation depends on how well the

business blends its people, organizational structure and company culture into a cohesive

program that supports the marketing plan. For its further success, Coca Cola must impose

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several key changes. Production needs to be on time and meet the quota demanded from

wholesalers. It must also be efficient so as not to build inventory stocks and inventory

prices. The marketing needs to be motivated and knowledgeable about the product.

Monitoring and Controlling

Monitoring and controlling allows the business to check for variance in the budget and

actual. This is important because it allows Coca Cola to take the necessary actions to meet

the marketing objectives. There are three tools Coca Cola should use to monitor the

marketing plan. They are the following:

Sales Analysis

The sales analysis breaks down total business sales by market segments to identify

strengths and weaknesses in the different areas of sales. Sellers of Coca Cola products

vary from major retail supermarkets to small corner stores. This gives the its products

maximum exposure to customers at their convenience.

Market Share Analysis

Market share analysis compares Coca Cola’s business sales performance with that of its

competitors. Coca Cola looks to increase its market share by over 60%. With the changes

Coca Cola is currently undergoing, they aim to regain an iron fist control of the market.

Target market various age groups and lifestyles from high school students too

universities, and male or female.

Marketing Profitability Analysis

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This analysis looks at the cost side of marketing and the profitability of products, sales

territories, market segments and sales people. There are three ratios to monitor marketing

profitability; they are market research to sales, advertising to sales and sales

representatives to sales. The results of these three tools can help Coca Cola determine any

emerging trends, such as the need for a different product. Comparing these results with

actual results gives the business an idea on when to change.

Market Research

When attempting to implement a new Marketing plan a business must address its target

market and conduct the relevant information to insure the new marketing plan both differs

from the old and is better for the business. When conducting market research a business

must first define the problem and then gather the appropriate information to solve the

problem. There are 3 types of information a business can gather to solve its problems.

Coca Cola through its market research has addressed all three types of research to define

the problem raised by shareholders and gathered information to serve their needs.

Factors Influencing Consumer Choice

When making decisions on products a business must look at factors that influence

consumer choice such as psychological factors, Socio cultural factors, Economic factors

and Government Factors.

Psychological Factors:

Such as motivation, perception, lifestyle, personality and self concept, learning, and

attitudes influence the consumers’ behavior towards a product and Coca Cola has

addressed this issue by introducing Diet Coke to satisfy different lifestyles.

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Socio cultural factors:

Such as culture, subculture, socio-economic status, family and reference groups influence

the consumers’ behavior towards a product.

Economic factors:

Such as Disposable income and discretionary income. Coca Cola has addressed this side

of the influence by maintaining a low price on the price of its products.

Government Factors:

Such as new regulations, inflation, interest rates all influence consumer spending and

choice.

ORGANIZATION COMPETITORS

PepsiCo, Inc. is one of the world's top consumer product companies with many of the

world's most important and valuable trademarks. Its Pepsi-Cola Company division is the

second largest soft drink business in the world, with a 21 percent share of the carbonated

soft drink market worldwide and 29 percent in the United States.Three of its brands--

Pepsi-Cola, Mountain Dew, and Diet Pepsi & mdashe among the top ten soft drinks in the

Indian market. The Frito-Lay Company division is by far the world leader in salty snacks,

holding a 40 percent market share and an even more staggering 56 percent share of the

U.S. market. In the United States, Frito-Lay is nine times the size of its nearest competitor

and sells nine of the top ten snack chip brands in the supermarket channel, including

Lay's, Doritos, Tostitos, Ruffles, Fritos, and Chee-tos. Frito-Lay generates more than 60

percent of PepsiCo's net sales and more than two-thirds of the parent company's operating

profits. The company's third division, Tropicana Products, Inc., is the world leader in

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juice sales and holds a dominant 41 percent of the U.S. chilled orange juice market. On a

worldwide basis, PepsiCo's product portfolio includes 16 brands that generate more than

$500 million in sales each year, ten of which generate more than $1 billion annually.

Overall, PepsiCo garners about 35 percent of its retail sales outside the United States,

with Pepsi-Cola brands marketed in about 160 countries, Frito-Lay in more than 40, and

Tropicana in approximately 50. As 2001 began, PepsiCo was on the verge of adding to its

food and drink empire the brands of the Quaker Oats Company, which include Gatorade

sports drink, Quaker oatmeal, and Cap'n Crunch, Life, and other ready-to-eat cereals.

When Caleb D. Bradham concocted a new cola drink in the 1890s, his friends

‘enthusiastic response convinced him that he had created a commercially viable product.

For 20 years, 'Doc' Bradham prospered from his Pepsi-Cola sales. Eventually, he was

faced with a dilemma; the crucial decision he made turned out to be the wrong one and he

was forced to sell. But his successors fared no better and it was not until the end of the

1930s that Pepsi-Cola again became profitable. Seventy years later, PepsiCo, Inc. was a

mammoth multinational supplier of soft drinks, juices, and snack food. PepsiCo's advance

to that level was almost entirely the result of its management style and the phenomenal

success of its television advertising. Doc Bradham, like countless other entrepreneurs

across the United States, was trying to create a cola drink similar in taste to Coca-Cola,

which by 1895 was selling well in every state of the union. On August 28, 1898, at his

pharmacy in New Bern, North Carolina, Bradham gave the name Pepsi-Cola to his most

popular flavored soda. Formerly known as Brad's Drink, the new cola beverage was a

syrup of sugar, vanilla, oils, cola nuts, and other flavorings diluted in carbonated water.

The enterprising pharmacist followed Coca-Cola's method of selling the concentrate to

soda fountains; he mixed the syrup in his drugstore, then shipped it in barrels to the

contracted fountain operators who added the soda water. He also bottled and sold the

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drink himself. In 1902 Doc Bradham closed his drugstore to devote his attention to the

thriving new business. The next year, he patented the Pepsi-Cola trademark, ran his first

advertisement in a local paper, and moved the bottling and syrup-making operations to a

custom-built factory. Almost 20,000 gallons of Pepsi-Cola syrup were produced in 1904

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PEPSI 48

INTRODUCTION

Pepsi is a carbonated soft drink that is produced and manufactured

by PepsiCo. Created and developed in 1898 and introduced as

"Brad's Drink", it was later renamed as Pepsi-Cola on

June 16, 1903, then to Pepsi in 1961. It is one of the most well

known brands in the world today available in over 160

countries. It has an extremely positive outlook for India. This

reflects that India holds a central position in Pepsi's corporate

strategy. India is a key market for Pepsi co, and at the same

time the company has added value to Indian agriculture and

industry. PepsiCo entered India in 1989 and is concentrating in

three focus areas- Soft drink concentrate, snack foods and

vegetable and food processing. Faced with the existing policy

framework at the time, the company entered the Indian market

through a joint venture with Volta’s and Punjab Agro

Industries. With the introduction of the liberalization policies

since 1991, Pepsi took complete control of its operations. The

government has approved more than US$ 400 mill ion worth of

investments of which over US$ 330 mill ion have already flown

in. One of PepsiCo's key strategies was to develop a completely

local management team. Pepsi has 19 company owned factories

while their Indian bottling partners own 21. The company has

set up 8 Greenfield sites in backward regions of different

states. PepsiCo intends to expand its operations and is planning

an investment of approximately US$ 150 mill ion in the next

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two-three years.

The history

Pepsi was originally named "Brad's Drink", after its creator, Caleb

Bradham, a pharmacist in New Bern, North Carolina. It was

created in the summer of 1893 and was later renamed Pepsi

Cola in 1898, possibly due the digestive enzyme pepsin and

kola nuts used in the recipe. Bradham sought to create a

fountain drink that was delicious and would aid in digestion

and boost energy In 1903, Bradham moved the bottling of

Pepsi-Cola from his drugstore into a rented warehouse. That

year, Bradham sold 7,968 gallons of syrup. The next year,

Pepsi was sold in six-ounce bottles, and sales increased to

19,848 gallons. In 1926, Pepsi received its first logo redesign

since the original design of 1905. In 1929, the logo was

changed again. In 1929, automobile race pioneer Barney

Oldfield endorsed Pepsi-Cola in newspaper ads as "A bully

drink...refreshing, invigorating, a fine bracer before a race".

Bankruptcy

In 1931, the Pepsi-Cola Company went bankrupt during the Great

Depression- in large part due to financial losses incurred by

speculating on wildly fluctuating sugar prices as a result of

World War I . Assets were sold and Roy C. Megargel bought the

Pepsi trademark. Eight years later, the company went bankrupt

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again. Pepsi 's assets were then purchased by Charles Guth, the

President of Loft Inc. Loft was a candy manufacturer with

retail stores that contained soda fountains. He sought to replace

Coca-Cola at his stores' fountains after Coke refused to give

him a discount on syrup. Guth then had Loft 's chemists

reformulate the Pepsi Cola syrup formula.

Pepsi Cola Trademark

The original trademark application for Pepsi-Cola was filed on

September 23, 1902 with registration approved on June 16,

1903. In the application's statement, Caleb Bradham describes

the trademark as an "arbitrary hyphenated word "PEPSI-

COLA", and indicated that the mark was in continuous use for

his business since August 1, 1901. The Pepsi-Cola's description

is a flavoring-syrup for soda water. The trademark expired on

April 15, 1994. A second Pepsi-Cola trademark is on record

with the USPTO. The application date submitted by Caleb

Bradham for the second trademark is Saturday, April 15, 1905

with the successful registration date of April 15, 1906, over

three years after the original date. Curiously, in this

application, Caleb Bradham states that the trademark had been

continuously used in his business "and those from whom title is

derived since in the 1905 application the description submitted

to the USPTO was for a tonic beverage. The federal status for

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the 1905 trademark is registered and renewed and is owned

by PepsiCo, Inc. of Purchase.

Rise

During the Great Depression , Pepsi gained popularity following the

introduction in 1936 of a 12-ounce bottle. Initially priced at 10

cents , sales were slow, but when the price was slashed to five

cents, sales increased substantially. With a radio advertising

campaign featuring the j ingle "Pepsi cola hits the spot / Twelve

full ounces, that 's a lot / Twice as much for a nickel , too /

Pepsi-Cola is the drink for you," Pepsi encouraged price-

watching consumers to switch, obliquely referring to the Coca-

Cola standard of six ounces a bottle for the price of five cents

(a nickel), instead of the 12 ounces Pepsi sold at the same

price. Coming at a time of economic crisis, the campaign

succeeded in boosting Pepsi's status. In 1936 alone

500,000,000 bottles of Pepsi were consumed. From 1936 to

1938, Pepsi-Cola's profits doubled. Pepsi 's success under Guth

came while the Loft Candy business was faltering. Since he had

initially used Loft 's finances and facilit ies to establish the new

Pepsi success, the near-bankrupt Loft Company sued Guth for

possession of the Pepsi-Cola company. A long legal battle,

Guth v. Loft , then ensued, with the case reaching the Delaware

Supreme Court and ultimately ending in a loss for Guth.

Niche Marketing

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Walter Mack was named the new President of Pepsi-Cola and guided the

company through the 1940s. Mack, who supported

progressive causes, noticed that the company's strategy of

using advertising for a general audience either

ignored Americans or used ethnic stereotypes in portraying

blacks. He realized African Americans were an untapped niche

market and that Pepsi stood to gain market share by targeting

its advertising directly towards them. To this end, he

hired Hennan Smith , advertising executive "from the Negro

newspaper field" to lead an all-black sales team, which had to

be cut due to the onset of World War II . In 1947, Mack

resumed his efforts, hiring Edward F. Boyd to lead a twelve-

man team. They came up with advertising portraying black

Americans in a positive light, such as one with a smiling

mother holding a six pack of Pepsi while her son (a young Ron

Brown, who grew up to be Secretary of Commerce ) reaches up

for one. Another ad campaign, titled "Leaders in Their Fields",

profiled twenty prominent African Americans such as Nobel

Peace Prize winner Ralph and photographer Gordon Parks.

Boyd also led a sales team composed entirely of blacks around

the country to promote Pepsi. Racial segregation and laws were

still in place throughout much of the U.S.; Boyd's team faced a

great deal of discrimination as a result, from insults by Pepsi

co-workers to threats by the Ku Klux Klan. On the other hand,

it was able to use racism as a selling point, attacking Coke's

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reluctance to hire blacks and support by the chairman of Coke

for segregationist Governor Herman Talmadge . As a result,

Pepsi 's market share as compared to Coke's shot up

dramatically. After the sales team visited Chicago, Pepsi 's

share in the city overtook that of Coke for the first time. This

focus on the market for black people caused some

consternation within the company and among its affiliates. It

did not want to seem focused on black customers for

fear white customers would be pushed away. In a meeting at

the Waldorf-Astoria Hotel , Mack tried to assuage the

500 bottlers in attendance by pandering to them, saying: "We

don't want it to become known as a nigger drink." After Mack

left the company in 1950, support for the black sales team

faded and it was cut.

Current Situation

PepsiCo, Inc. is one of the most successful consumer products companies

in the world, with 2000 revenues of over $20 billion and

125,000 employees. The company consists of: Frito-Lay

Company, the largest manufacturer and distributor of snack

chips; Pepsi-Cola Company, the second largest soft drink

business and Tropicana Products, the largest marketer and

producer of branded juice. PepsiCo brands are among the best

known and most respected in the world and are available in

about 190 countries and territories.

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PRODUCTS OF PEPSI

Pepsi

Pepsi is a carbonated soft drink that is produced and manufactured

by PepsiCo. Created and developed in 1898 and introduced as

"Brad's Drink", it was later renamed as Pepsi-Cola on

June 16, 1903, then to Pepsi in 1961. It is one of the most well

known brands in the world today available in over 160

countries.

Mirinda

Mirinda is a brand of soft drink originally created in Spain, but with

global distribution. The word Mirinda means "admirable,

wonderful" in Esperanto. It is available in fruit varieties

including

orange, grapefruit , apple, strawberry, raspberry, pineapple,

pomegranate , banana,lemon, hibiscus, Guarana,tangerine,and gr

ape flavors well as Tamarind. A "citrus" flavor is also

available in certain areas of the Middle East.

Mountain Dew

Mountain Dew s a carbonated soft drink brand produced and owned

by PepsiCo. The original formula was invented in the 1940s by

Tennessee beverage bottlers Barney and Ally Hartman and was

first marketed in Marion, Virginia , Knoxville and Tennessee.

The Mountain Dew brand and production rights were acquired

by the Pepsi-Cola company in 1964, at which point its

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distribution expanded more widely across the United States .

7UP

7UP is a brand of a lemon-lime flavored non-caffeinated soft drink. The

rights to the brand are held by Dr Pepper Snapple Group in the

United States, and PepsiCo (or its licensees) in the rest of the

world.

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PEPSI VS COCA-COLA

Taste

Coca-Cola is the original cola, while there isn't a huge difference in taste; Pepsi mirrored

their cola after Coke's, being just different enough in taste to not actually be

the same drink.

Similarities

Pepsi-Cola and Coca Cola Classic are both carbonated cola beverages.

Sweetness

Pepsi tastes sweeter than Coca-Cola, This is the reason why many prefer Pepsi over

Coca-Cola in a blind test but may prefer Coke when drinking an entire can.

Carbonation

Coca-Cola has more carbonation than Pepsi depending on what region you are in. It was

said that depending on where each one was made the amount of carbonation

in them will be different therefore proving that neither Coca-Cola nor Pepsi

have more carbonation.

THE COLA WAR

The Cola Wars are a campaign of mutually-targeted television advertisements and

marketing campaigns since the 1980s to present between soft drink

manufacturers Coca-Cola Company and PepsiCo Incorporated .

According to Consumer Reports, in the 1970s, the rivalry continued to heat

up the market. Pepsi conducted blind taste tests in stores, in what was

called the "Pepsi Challenge". These tests suggested that more consumers

preferred the taste of Pepsi (which is believed to have more lemon oil, less

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orange oil, and uses vanillin rather than vanilla) to Coke. The sales of

Pepsi started to climb, and Pepsi kicked off the "Challenge" across the

nation. This became known as the "Cola Wars."

In 1985, The Coca-Cola Company, amid much publicity, changed its formula. The

theory has been advanced that New Coke, as the reformulated drink came

to be known, was invented specifically in response to the Pepsi Challenge.

However, a consumer backlash led to Coca-Cola quickly introducing a

modified version of the original formula (removing the expensive Haitian

lime oil and changing the sweetener to corn syrup) as Coke "Classic".

The Beginning

1975 heralded the ‘Pepsi Challenge’, a landmark marketing strategy,

which convinced mill ions of consumers that the taste of Pepsi

was superior to Coke. Simultaneously, Pepsi Light, with a

distinctive lemon taste, was introduced as an alternative to

traditional diet colas.

In 1983 Coke launched aspartame/saccharin blend Diet Coke. In response

in 1989 Pepsi-Cola introduced an exciting new flavor, Wild

Cherry Pepsi. Thus Diet Pepsi 's 'The Other Challenge'

campaign was based around a 54-46% lead over Diet Coke in

independently researched taste tests in Australia. It was only in

1996 that Pepsi unveiled a revolutionary 'blue' look worldwide

' to transform the image and attitude' of one of the world's best-

known brands. 'Pepsi Blue represents a quantum leap into the

future and redefines how the Cola Wars will be fought and won

in the 21st Century. '

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Competition

Many of the brands available from the three largest soda producers, The Coca-Cola

Company and PepsiCo are intended as direct, equivalent competitors. The

following chart lists these competitors by type or flavour of drink.

Marketing Campaigns

Coca-Cola and Pepsi-Cola focused particularly on pop stars; notable soft

drink promoters included Mariah Carey, KISS, Tina

Turner , Britney Spears , David Bowie, Rod Stewart , Jim

Varney, Elvis Presley, Michael Jackson, Madonna, and Ray

Charles (for Pepsi) and Whitney Houston, Paula Abdul, Weird Al

Yankovic, George Michael , Christina Aguilera , Max Headroom,

and Elton John (for Coca-Cola).

Coca-Cola

One example of a heated exchange that occurred during the Cola Wars was Coca-Cola

making a strategic retreat on July 11, 1985, by announcing its plans to bring

back the original 'Classic' Coke after recently introducing New Coke.

Pepsi

Pepsi ads often focused on celebrities choosing Pepsi over Coke, supporting

Pepsi's positioning as "The Choice of a New Generation." Pepsi

generation was created focusing on the user of the drink, never the drink.

Coke always focused on the drink. Pepsi focused on the person using it.

They showed people riding dirt bikes, waterskiing, or kite flying, hang

gliding — doing different things. And at the end of it there would always be

a Pepsi as a reward. This all happened when color television was first

coming in. They were the first company to do lifestyle marketing. The first

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and the longest-running lifestyle campaign were and still is Pepsi. In 1975,

Pepsi began showing people doing blind taste tests called Pepsi

Challenge in which they preferred one product over the other, and then

they began hiring more and more popular spokespersons to promote their

products. In their hope to win the Cola Wars a Concorde was painted blue

with PEPSI written across it in white lettering. In the late 1990s, Pepsi

launched its most successful long-term strategy of the Cola Wars, Pepsi

Stuff. Consumers were invited to "Drink Pepsi, Get Stuff" and collect Pepsi

Points on billions of packages and cups. They could redeem the points for

free Pepsi lifestyle merchandise. After researching and testing the program

for over two years to ensure that it resonated with consumers, Pepsi

launched Pepsi Stuff, which was an instant success. Tens of millions of

consumers participated. Pepsi outperformed Coke during the summer of

the Atlanta Olympics - held in Coke's hometown - where Coke was a

lead sponsor of the Games. Due to its success, the program was expanded to

include Mountain Dew, and into Pepsi's international markets worldwide.

The company continued to run the program for many years, continually

innovating with new features each year. The Pepsi Stuff promotion became

the subject of a lawsuit . In one of the many commercials, Pepsi showed a

young man in the cockpit of a Harrier Jump Jet . Below ran the caption

"Harrier Jet: 7 million Pepsi Points." There was a mechanism for buying

additional Pepsi Points to complete a Pepsi Stuff order. John Leonard, of

Seattle, Washington, sent in a Pepsi Stuff request with the maximum

amount of points and a check for over $700,000US to make up for the extra

points he needed. Pepsi did not accept the request and Leonard filed suit.

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The judgment was that a reasonable person viewing the commercial would

realize that Pepsi was not, in fact, offering a Harrier Jet. In response to the

suit, Pepsi added the words "Just Kidding" under the portion of the

commercial featuring the jet as well as changing the "price" to 700 million

Pepsi pointsCoca-Cola and Pepsi engaged in a "cyber-war" with the re-

introduction of Pepsi Stuff in 2005 & Coca-Cola retaliated with Coke

Rewards. This cola war has now concluded, with Pepsi Stuff ending its

services and Coke Rewards still offering prizes on their website. Both were

loyalty programs that give away prizes and product to consumers after

collecting bottle caps and 12 or 24 pack box tops, then submitting codes

online for a certain number of points. However, Pepsi's online partnership

with Amazon allowed consumers to buy various products with their "Pepsi

Points", such as mp3 downloads. Both Coca-Cola and Pepsi previously had

a partnership with the iTunes Store.

In Space

In 1985, Coca-Cola and Pepsi were launched into space aboard the Space Shuttle

Challenger onSTS-51-F. The companies had designed special cans

(officially the Carbonated Beverage Dispenser Evaluation payload or

CBDE) to test packaging and dispensing techniques for use in zero

G conditions. The experiment was classified a failure by the shuttle crew,

primarily due to the lack of both refrigeration and gravity. The "Coca-

Cola Space Dispenser" (Fluids Generic Bio-processing Apparatus-1, or

FGBA-1) was designed to provide astronauts the opportunity to enjoy Coca-

Cola and Diet Coke in the weightless environment of space, and to "provide

baseline data on changes in astronauts' taste perception of beverages

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consumed in microgravity." It held 1.65 liters each of Coca-Cola and Diet

Coke. An astronaut would dispense the carbonated drink of choice into a

"Fluids Transfer Unit" or sealed drinking cup through a quick connect on

the dispenser. To save power, the dispenser would chill the liquid on

demand via cooling coils between the storage container and the quick

connect fitting. The FGBA-1 and 18 of the "Fluid Transfer Units" flew

aboard the Space Shuttle Discovery in 1995. (STS-63) Further

development led to a Coca-Cola fountain dispenser (Fluids Generic Bio-

processing Apparatus-2 or FGBA-2) intended as "a test bed to determine if

carbonated beverages can be produced from separately stored carbon

dioxide, water and flavored syrups and determine if the resulting fluids can

be made available for consumption without bubble nucleation and resulting

foam formation". This unit dispensed PowerAde sports drink in addition

to Coca-Cola and Diet Coke. This unit flew on STS-77 aboard Space

Shuttle Endeavour in 1996. Unfortunately, the FGBA-2 did not work as

expected.

Second Cola War

During the 1990s, a "second cola war" was reported in the United Kingdom. This time

it was due to the launch of Virgin Cola , as well as Sainsbury's store

brand Classic Cola, which, unlike most store brand colas, was designed

to look like a top product worthy of competition. For a few years both colas

were competitive with Coca-Cola and Pepsi; at one point Coca-Cola even

sued Sainsbury's claiming the design of the Classic Cola can was too similar

to Coke's. However, today, both Virgin and Classic Cola are far behind the

two major brands.The high-publicity marketing also continued into the

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1990s. In 1997, the Spice Girls (then at their peak) signed a multi-million

pound sponsorship deal with Pepsi . They starred in

three Pepsi commercials; released two limited edition singles with Pepsi,

"Move Over" and "Step to me"; featured on Pepsi packaging; and

performed two live concerts in Istanbul organized and sponsored by the

company.

Cola Wars today

Pepsi’s New Strategy: Better-For-You Products In 2007, Indra Nooyi became the fifth

CEO in PepsiCo's 44-year history, and the game completely changed. A

former management consultant, she decided not to duke it out directly with

Coke. Instead, she’s trying to redefine the playing field...U.S. Consumption

of carbonated soft drinks has steadily declined in the past decade. Part of

that comes down to the array of alternative beverages the market now offers.

Part of it comes down to health concerns in a nation with an obesity

problem. But rather than buck the trend, Ms. Nooyi seeks to refocus Pepsi.

“Lifestyles have changed,” she notes, “And we have to modify our

products.”In that spirit, she’s focusing the company more on water, juices,

teas and sports drinks. Pepsi’s top brands in those areas include Aquafina

and Gatorade. And while it trails in soft drink sales, it leads the world in

ready-to-drink teas through Lipton, while its Tropicana wins out in

juices/nectars. The company is betting big on creating healthy foods through

its Quaker Oats, Gatorade and Tropicana divisions. And it just began the

Global Nutrition Group to deliver breakthrough products. Nooyi says the

new Group “is part of our long-term strategy to grow our nutrition business

from about $10 billion in revenues today to $30 billion by 2020.To further

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that goal, Pepsi hired several well-known nutritionists to direct its efforts at

reducing fat, sodium and sugar in its products. Already, Lay’s potato chips

have 25% less sodium… and by 2011, they’ll be made from 100% natural

ingredients. As Caroline Levy, a CLSA analyst, noted, “PepsiCo is currently

focused on better-for-you” products.

Coke’s Consistent Strategy Wins the Cola War

Meanwhile, Coca-Cola doesn’t seem to care about what Pepsi has accepted. CEO Muhtar

Kent not only continues to focus on selling soft drinks globally, but even

vows to rebuild Coke sales in the U.S. market. And admittedly, Coke’s

beverage volume in North America dropped only 2% last year. 2009 was

extremely difficult economically on top of a relatively cool summer. In

comparison, Pepsi’s beverage volume in the same region plunged

8%.According to Beverage Digest, this makes Coca-Cola brand the

uncontested U.S. heavyweight. Indeed, looking at all carbonated soft drinks,

Coke brands commanded 41.9% of the total market last year compared to

PepsiCo’s 29.9%.The same goes for the companies’ flagship brands.

Through 2009, Coca-Cola commanded 17% of the U.S. soft drink market;

Pepsi held only 9.9%. And while both brands have been declining, Pepsi is

doing so at a slightly faster rate. Pepsi Admits Defeat… Goes On New

Health Kick As far as Pepsi is concerned, the cola wars are over. It now

needs to focus on convincing investors that it has the right focus in this new

health kick. Currently, the Global Nutrition Group is little but a nice

marketing tool. Will Pepsi really develop healthier foods and drinks while

still coming up with new types of chips and soda flavors is a question.It

recently reduced the top end of its guidance for earnings growth this year

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from 13% to 11%. This may be due to increased investment in nutrition…

or because of a difficult, competitive global environment. Coke, among

others, continues to steal market share away from Pepsi. Carbonated

beverages still produce much of the company’s sales and for now, they’re

still key to Pepsi’s future health.

Which Cola brand is the Better Investment?

A study found that 80 percent of people can differentiate a sample of Coca-Cola from a

sample of Pepsi . The same study found that if you give people three

samples they can only accurately guess which samples are which 33 percent

of the time. That’s the same odds as randomly guessing. Malcolm Gladwell

called this the Triangle Problem in his book Blink: the Power of

Thinking without Thinking . The idea is that the two products are much

more similar than they are different. Some people even theorize that

the preferences than the actual soda.This same concept can be extrapolated

to each company’s respective stock.

Coke vs. Pepsi –Dividends

Both Pepsi and Coke are favorites of super investor Warren Buffett. That’s because both

stocks have had strong growth and both are cash cows when it comes to

dividends.

One interesting note not apparent in the above table above is that Coca-Cola has raised its

dividend in a slower, more consistent manner. Pepsi, on the other hand, has

significantly upped their dividend distribution over the last few years. In

2004, Pepsi offered a quarterly dividend of 16 cents when Coke was

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offering a quarter. Coke has increased annual dividends for 49 years

running. Pepsi also has a streak of increasing their annual dividend for 39

straight years. Coke’s stock price has grown in value by over 50 percent

since the beginning of 2009. Pepsi’s stock has grown by about 40 percent in

the same time. In terms of market share, Coke owns the top two spots in the

cola industry – Coke and Diet Coke- with Pepsi’s flagship cola coming in

at third. Pepsi does have a slight advantage over Coke in diversification.

Pepsi has snack food brands such as Frito-Lay and Quaker under its

umbrella. They also own the brands that make beverages such as Gatorade,

Tropicana and Naked Juices. While Coke hasn’t tapped the snack food

market, they do have some beverage diversification. Dasani bottled water,

PowerAde and Minute Maid juices are all under Coca-Cola’s umbrella.

PRESENCE IN INDIA

PEPSI

PepsiCo entered India in 1989 and has grown to become one of the country’s leading

food and beverage companies. One of the largest multinational investors in

the country, PepsiCo has established a business which aims to serve the long

term dynamic needs of consumers in India.

PepsiCo India and its partners have invested more than U.S.$1 billion since the company

was established in the country. PepsiCo provides direct and indirect

employment to 150,000 people including suppliers and distributors. PepsiCo

nourishes consumers with a range of products from treats to healthy eats

that deliver joy as well as nutrition and always, good taste. PepsiCo India’s

expansive portfolio includes iconic refreshment beverages Pepsi, 7 UP,

Mirinda and Mountain Dew, in addition to low calorie options such as Diet

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Pepsi, hydrating and nutritional beverages such as Aquafina drinking water,

isotonic sports drinks - Gatorade, Tropicana100% fruit juices, and juice

based drinks – Tropicana Nectars, Tropicana Twister and Slice. Local

brands – Lehar Evervess Soda, Dukes Lemonade and Mangola add to the

diverse range of brands.

PepsiCo’s foods company, Frito-Lay, is the leader in the branded salty

snack market and all Frito Lay products are free of trans-fat and MSG. It

manufactures Lay’s Potato Chips; Cheetos extruded snacks, Uncle Chipps

and traditional snacks under the Kurkure and Lehar brands. The company’s

high fibre breakfast cereal, Quaker Oats, and low fat and roasted snack

options enhance the healthful choices available to consumers. Frito Lay’s

core products, Lay’s, Kurkure, Uncle Chipps and Cheetos are cooked in

Rice Bran Oil to significantly reduce saturated fats and all of its products

contain voluntary nutritional labeling on their packets.The group has built

an expansive beverage and foods business. To support its operations,

PepsiCo has 43 bottling plants in India, of which 15 are company owned

and 28 are franchisee owned. In addition to this, PepsiCo’s Frito Lay foods

division has 3 state-of-the-art 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.

COCA-COLA

Coca-Cola, the corporation nourishing the global community with the world’s largest

selling soft drink concentrates since 1886, returned to India in 1993 after a

16 year hiatus, giving new thumbs up to the Indian soft drink market. In the

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same year, the Company took over ownership of the nation’s top soft-drink

brand and bottling network. It’s no wonder our brands have assumed an

iconic status in the minds of the world’s consumers Ever since, Coca-Cola

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. Coca-Cola

India is among the country’s top international investors, having invested

more than US$ 1 billion in India in the first decade, and further pledged

another US$100 million in 2003 for its operations. The Company has

shaken up the Indian carbonated drinks market greatly, giving consumers

the pleasure of world-class drinks to fill up their hydration, refreshment, and

nutrition needs. It has also been instrumental in giving an exponential

growth to the country’s job listings.With virtually all the goods and services

required to produce and market Coca-Cola being made in India, the business

system of the Company directly employs approximately 6,000 people, and

indirectly creates employment for more than 125,000 people in related

industries through its vast procurement, supply, and distribution system. The

Indian operations comprises of 50 bottling operations, 25 owned by the

Company, with another 25 being owned by franchisees. Apart that, a

network of 21 contract packers manufactures a range of products for the

Company. On the distribution front, 10-tonne trucks – open bay three-

wheelers that can navigate the narrow alleyways of Indian cities –

constantly keep our brands available in every nook and corner of the

country’s remotest areas.

PEPSI V/S COCA-COLA Marketing

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Control of market share is the key issue in this case study. The situation is both Coke and

Pepsi are trying to gain market share in this beverage market, which is

valued at over $30 billion a year. Just how this is done in such a competitive

market is the underlying issue. The facts are that each company is coming

up with new products and ideas in order to increase their market share. The

creativity and effectiveness of each company's marketing strategy will

ultimately determine the winner with respect to sales, profits, and customer

loyalty. Not only are these two companies constructing new ways to sell

Coke and Pepsi, but they are also thinking of ways in which to increase

market share in other beverage categories. Although the goal of both

companies is exactly the same, the two companies rely on somewhat

different marketing strategies.

Pepsi has always taken the lead in developing new products, but Coke soon learned their

lesson and started to do the same. Coke hired marketing executives with

good track records. Coke also implemented cross training of managers so it

would be more difficult for cliques to form within the company. On the

other hand, Pepsi has always taken more risks, acted rapidly, and was

always developing new advertising ideas. Both companies have also relied

on finding new markets, especially in foreign countries. In the foreign

markets, Coke has been more successful than Pepsi. For example, in Eastern

Europe, Pepsi has relied on a barter system that proved to fail. However, in

certain countries that allow direct comparison, Pepsi has beat Coke. In

foreign markets, both companies have followed the marketing concept by

offering products that meet consumer needs in order to gain market share.

For instance, in certain countries, consumers wanted a soft drink that was

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low in sugar, yet did not have a diet taste or image. Pepsi responded by

developing Pepsi Max. These companies in trying to capture market share

have relied on the development of new products. In some cases the products

have been successful. However, at other times the new products have failed.

For Coke, changing their original formula and introducing it as “New Coke”

was a major failure. The new formula hurt Coke as consumers requested

Classic Cokes’ return. Pepsi has also had its share of failures. Some of their

failures included: Pepsi Light, Pepsi Free, Pepsi AM, and Crystal Pepsi. One

solution to increasing market share is to carefully follow consumer wants in

each country. The next step is to take fast action to develop a product that

meets the requirements for that particular region. Both companies cannot

just sell one product; if they do they will not succeed. They have to always

be creating and updating their marketing plans and products. The companies

must be willing to accommodate their “target markets”. Gaining market

share occurs when a company stays one-step ahead of the competition by

knowing what the consumer wants. My recommendation is to make sure the

company is always doing market research. This way they are able to get as

much feedback as possible from consumers. Next, analyze this data as fast

as possible, and then develop the new product based upon this data. Once

the product is developed, get it to the marketplace quickly where time is a

very critical factor.

Advertising Strategies

PEPSI

For over 100 years, Pepsi-Cola has produced some of the finest soft drink ads available

anywhere in the world. From today's "Joy of Pepsi," as sung by Britney

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Spears, to yesterday's "Nickel, Nickel" (1939), our ads are as memorable as

the products we produce.

Some highlights of the Ads are given below.

1999: The new campaign highlights the popular soft drink that goes with everything from

food to fun.

• Pepsi's last major campaign change was in 1999, when it debuted "The Joy

of Cola," which became "The Joy of Pepsi" in 2000.

• Pepsi updates its look with a bolder, more contemporary image that better

captures the brand's youthful attitude.

• Mountain Dew offers its third line extension with Mountain Dew

Livewires, combining the unique citrus taste of Mountain Dew with a bold

orange flavor.

• Pepsi's blockbuster summer promotion "Pepsi Play for a Billion" gives

1,000 consumers the chance to play for $1 billion on a live television show

on The WB. A guaranteed $1 million prizewinner will be chosen and will

then have a chance to win $1 billion without forfeiting the $1 million prize.

• In September, Richard Bay, a 42-year-old high school teacher from

Princeton, West Virginia, became a millionaire on "Pepsi Play for a Billion"

on The WB. Bay and the television audience then held their collective

breath to see if he would also win the billion dollars. Instead, his number

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was two digits off the billion-dollar number, but Bay was still pleased with

his cool million.

2000: The popular Pepsi Challenge makes its return, and consumers across the country let

their taste decide the best cola and one-calorie cola. Helping launch the

Challenge is two of baseball's top sluggers – Sammy Sosa and Ken Griffey

Jr.

• On the airwaves, the "Joy of Cola" campaign is a hit as "Pepsi Girl" Hallie

Eisenberg rocks with pop star Faith Hill and perennial rockers KISS.

• Among those doing the Dew is hip-hop artist Busta Rhymes, and Aquafina

launches it’s first-ever television advertising campaign.

2001: The popular "Joy of Cola" tagline gets an update, becoming the "Joy of Pepsi."

Three months later, Britney Spears stars in a blockbuster Pepsi commercial

that breaks during the Academy Awards. An hour before the telecast, the

high-energy spot debuts online, where more than 2 million fans click their

way to Britney's own version of the "Joy of Pepsi." Thirsty consumers are

invited to "discover a sensation as real as the streets," when cherry-flavored

Mountain Dew Code Red is introduced.

Pepsi puts a little twist on a great thing, unveiling the first national TV commercial for

new lemon-flavored Pepsi Twist.

2002: In March, supermodel Cindy Crawford helps introduce a new look for Diet Pepsi.

The updated graphics better represent the brand's light, crisp, refreshing

qualities.

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• Pepsi-Cola teams up with the National Football League, becoming its

Official Soft Drink Sponsor.

• Pepsi declares, "It's a blue thing," and unveils Pepsi Blue in July. A fusion

of berries with a splash of cola, the blue-hued soft drink is created by and

for teens. Through nine months of research and development, Pepsi asks

young consumers what they want most in a new cola. Their response:

"Make it berry and make it blue."

• In December, American music and film sensation Beyoncé Knowles is

welcomed as the newest member of the Pepsi family.

2003: Pepsi-Cola unveils a new advertising campaign, "Pepsi. It's the Cola," which is the

brand's first major campaign shift since 1999. The new campaign highlights

the popular soft drink that goes with everything from food to fun.

• Pepsi's last major campaign change was in 1999, when it debuted "The Joy

of Cola," which became "The Joy of Pepsi" in 2000.

• Pepsi updates its look with a bolder, more contemporary image that better

captures the brand's youthful attitude.

• Mountain Dew offers its third line extension with Mountain Dew

Livewires, combining the unique citrus taste of Mountain Dew with a bold

orange flavor.

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• Pepsi's blockbuster summer promotion "Pepsi Play for a Billion" gives

1,000 consumers the chance to play for $1 billion on a live television show

on The WB. A guaranteed $1 million prizewinner will be chosen and will

then have a chance to win $1 billion without forfeiting the $1 million prize.

• In September, Richard Bay, a 42-year-old high school teacher from

Princeton, West Virginia, became a millionaire on "Pepsi Play for a Billion"

on The WB. Bay and the television audience then held their collective

breath to see if he would also win the billion dollars. Instead, his number

was two digits off the billion-dollar number, but Bay was still pleased with

his cool million.

2004: Pepsi unveils five new TV commercials for Pepsi and Sierra Mist on Super Bowl

XXXVIII, making this the 19th straight year that Pepsi has advertised in the

big game.

• On Super Bowl Sunday, Apple and Pepsi officially launch a historic

promotion to legally give away millions of free songs to Mac and Windows

PC users from Apple's iTunes Music Store.

• On the Academy Awards telecast, Diet Pepsi stole the spotlight as the

country’s fastest-growing major soft drink bowed a new advertising

campaign with the tagline, “Diet Pepsi. It’s the Diet Cola. The zero-calorie

cola brand illustrates how it is the best option to go with food and social

occasions, much like its sister brand, Pepsi-Cola.

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• Two popular sportscasters help turn life’s everyday moments into a cause

for celebration in a new advertising campaign for Pepsi EDGE, the new cola

with full-flavored taste but half the sugar, carbs & calories of regular colas.

The campaign tagline, "This moment deserves a Pepsi EDGE," reminds

consumers that they can reward themselves with a Pepsi EDGE for

completing even the simplest of tasks.

• Mountain Dew brings nostalgia back into pop culture as it introduces new

commercials featuring the classic Mad Magazine "Spy vs. Spy" characters

— that will stop at nothing to get their Dew.

COCA-COLA

As the world's favourite drink, the world's most valuable brand and the most recognizable

word across the world after ‘OK’; Coca-Cola has a truly remarkable

heritage. From a humble beginning in 1886, it is now the flagship brand of

the largest manufacturer, marketer and distributor of non-alcoholic

beverages in the world. Coca-Cola returned to India in 1993 and over the

past ten years has captured the imagination of the nation, building strong

associations with cricket, the thriving cinema industry, music etc. Coca-

Cola has been very strongly associated with cricket, sponsoring the World

Cup in 1996 and various other tournaments, including the Coca-Cola Cup in

Sharjah in the late nineties. Coca-Cola's advertising campaigns “Jo Chaho

Ho Jaye and Life ho to Aisi” were very popular and had entered the youth's

vocabulary.

2002:Coca-Cola launched the campaign "Thanda Matlab Coca-Cola" which sky-rocketed

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the brand to make it India's favourite soft-drink brand.

2003: Coke was available for just Rs. 5 across the country and this pricing initiative

together with improved distribution ensured that all brands in the portfolio

grew leaps and bounds.Coca-Cola had signed on various celebrities

including movie stars such as Karishma Kapoor, cricketers such as Srinath,

Sourav Ganguly, southern celebrities like Vijay in the past and today, its

brand ambassadors are Aamir Khan, Aishwarya Rai, Vivek Oberoi and

cricketer Virendra Sehwag.

MEDIA PLANNING THROUGH DIGITAL WAY

Website Review Coca Cola

http://www.coca-cola.ie/

The Coca Cola Website is a very easy to use Service. It provides the user with a simple to

navigate homepage making it easy to find what is required. The Website is

colored in the traditional red of coca Cola but also presents a vast array of

other colors and images to make the site seem more fun and playful. The

Links displayed make the site very easy to navigate. The site provides all

the information on the product itself as well as providing news and

recycling information. This Helps cater to all audiences and makes the site

more appealing. Having these additional features on the site will ensure that

customers will be able to get more than just information about coca cola and

its promotions. In addition the coca cola .com site also redirects you to the

official site of the country your in. This gives the customer a more

personalized service and also makes them aware of any promotions in their

respective countries.

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Pepsi

http://www.pepsi.com/en-us/d

Upon entering the Pepsi website the user is instantly bombarded by a vast range of Links

to twitter and other social media sites. It gives customers the chance to

become involved in the site and in the product being offered. It also

highlights its competitions as well as facts about Pepsi. Much Like the coca

cola website, The Pepsi website is also colored in its traditional coloring, in

this case red and blue .Similarly the site is very easy to navigate. One of the

main Positives of the site is a very clear link to its social media sites. This

enables Pepsi to be more interactive with its customers as it gives customers

the chance to become involved.

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Objectives of the study

The following are the objectives of the report

To study the promotional strategy & effect on soft drink industries in India.

To find the extent of brand loyalty of consumers that exists among different soft

drink industries in India.

To identify how the media planning helps in meeting the customers’ expectations

to meet their satisfaction and investment objectives.

To study the influence of various aspects on buying behavior. These factors are:-

- price – ingredient - Brand name & others features.

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To study the government plans and policy related to soft drink industries in India

Study the different co. availability in India & its annual growth.

To study the competition field in soft drink in India.

Importance of the study

The importance of a project report is following.

The study will help to know that what additional features & what facilities should

be increase.

Customer is satisfied with the product and services provided by companies or he

is dissatisfied.

It helps in identify reason behind dissatisfactions.

The importance of study is that it is helpful to make future policy of the company.

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It is important to create a new plan for products & services in future with unique

quality & facilities that will be preferred by the customers.

To know the factor behind purchase of soft drink.

To know the recent technologies and growth rate of soft drink industries in India.

Scope of the study

The scope of this project is the study the product quality and growth of the company. It

covers a wide range analysis of the company that what kind of product quality services

has been provided by the company, what are the qualities of products, what are the

satisfaction level of the customer by the of the company, working and promotional

process of the company, How the company satisfy the customer by its product.

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This study also shed light on the relationship of company with customers. The study also

covers the behavioral pattern of company employees with the customer at the time of

complains for any product and how they provide service to them and satisfaction

according to choice of soft drink in India.

The response of the centre towards the customer also covered in this study. After analysis

the researcher comes to know that the customer response centre gives good response to

each and every complaint and do its best of satisfy the customers by its service and

products provided by the soft drink industries in India. After analysis the researcher

comes to know that the recent technologies and growth rate of soft drink industries in

India.

Mainly considered the competition between Coak V/S Pepsi in India.

Research Methodology

Research is a common language refers to a search of knowledge. Research is scientific &

systematic search for pertinent information on a specific topic, infect research is an art of

scientific investigation. Research Methodology is a scientific way to solve research

problem. It may be understood as a science of studying how research is don’t

scientifically. In it we study various steps that are generally adopted by researchers in

studying their research problem. It is necessary for researchers to know not only know

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research method techniques but also technology. The scope of Research Methodology is

wider than that of research methods.The research problem consists of series of closely

related activities. At times, the first step determines the native of the last step to be

undertaken. Why a research has been defined, what data has been collected and what a

particular methods have been adopted and a host of similar other questions are usually

answered when we talk of research methodology concerning a research problem or study.

The project is a study where focus is on the following points:

Research Design:-

A research design is defined, as the specification of methods and procedures for acquiring

the Information needed. It is a plant or organizing framework for doing the study and

collecting the data. Designing a research plan requires decisions all the data sources,

research approaches, Research instruments, sampling plan and contact methods.

The study was descriptive kind of research.

Research design is mainly of following types:

1. Exploratory research.

2. Descriptive studies

3. Causal studies/Experimental studies

1. Exploratory research:-

The major purposes of exploratory studies are the identification of problems, the more

precise Formulation of problems and the formulations of new alternative courses of

action. The design of exploratory studies is characterized by a great amount of flexibility

and ad-hoc veracity.

2. Descriptive research:-

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Descriptive research in contrast to exploratory research is marked by the prior

formulation of specific research Questions. The investigator already knows a substantial

amount about the research problem. Perhaps as a Result of an exploratory study, before

the project is initiated. Descriptive research is also characterized by a Preplanned and

structured design.

3. Causal studies/Experimental studies

A casual design investigates the cause and effect relationships between two or more

variables. The hypothesis is tested and the experiment is done. There are following types

of casual designs

a. After only with control design

b. Before after with control design

c. Before after without control design

d. Consumer panel design

e. Ex-post facto design

Research Design has been classified into four subsections they are:

1. Sample selection and size;

2. Sampling procedure;

3. Data collection; and

4. Analytical tools

Sampling Procedure

There are basically two methods of sampling:-

Probability sampling

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It is also known as random sampling. Under this sampling design every item of the

universe has an equal chance of inclusion in the sample. It is, so to say, a lottery method

in which individual units are picked from the whole group not deliberately but by some

mechanical process. Here it blind chance alone that determines whether one item or the

other is selected. The results obtained from probability sampling can be assured in terms

of probability.

Non Probability sampling

Non Probability sampling is that sampling procedure which does not afford any basis for

estimating the probability that each item in the population has been included in the

sample. In this type of sampling, items for the sample selected deliberately by the

researcher; his choice concerning the items remains supreme.

Data Collection method

Data Collection Method

Primary Secondary

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Published Sources Unpublished Sources

Direct personal Interview

Indirect personal Interview Govt. publication

Information from correspondents Report Committees

Mailed questionnaire & Commissions Private Publication

Question filled by enumerators Research Institute

The task data collection begins after research problem has been defined. There are two

methods for data collection.

Secondary data

Secondary data are those data which have been already collected and analyzed by some

earlier agency for its own use; and later the same data are used by a different agency.For

the present study, the survey method was used for collecting primary data. A structured

questionnaire was used for the purpose.

Analytical Data

The data thus collected, was tabulated, interpreted and analyzed with a view to make the

study meaningful. In the present study, hypothesis testing, percentage, frequency and

cross tabulation methods have been used for analysis.

MARKET PERCENTAGE SHARE IN ALL OVER INDIA

Table- 1

Brand PercentagePepsi 44%Coke 51%

Local Brand 5%

Chart- 1

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Analysis

It is found that 51% market share in India captured by Coak.

Interpretation

From the above analysis the researcher came to know that share of Coak in the Indian

market share is 51% ,Pepsi 44%and local brand 5%..

BRAND PREFERENCES

In a survey done by A & M magazines on the best marketing companies in India. Pepsi

and Coca-Cola were also entered. The results were as follows:

Table- 2

Brand RankPepsi 5Coke 4

Chart- 2

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Analysis

It is found that 4th rank is Pepsi in the market of India.

Interpretation

This shows that both the companies are paying more attention to the marketing of their

products. Pepsi is higher up on the scale than Coca-Cola. We 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 Coca-

Cola.

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COLD DRINNK MARKET IN INDIA

Table- 3

Brand PercentagePepsi 23%Coke 39%

Mountain due 15%Other 23%

Chart- 2

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Analysis

It is found that 39 % Coak market in India.

Interpretation

From the above analysis the researcher came to know that market of Coak in the Indian

market is 39% ,Pepsi 23% and Mountain Due 15% and Other is 5%.

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FINDING

The Indian soft drinks market is at 140 million cases per year. This is very low, even as

compared to Pakistan and Bangladesh. All these factors together have contributed to a

20% growth in the soft drinks industry. If this demand continues to grow at 20% grow at

20% annually, within 10 years the volumes could reach 1 billion cases. This kind of

growth is the reason for the entry of the two giants of the soft drink industry of the world.

• Coca-Cola

• Pepsi

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Coca-Cola and Pepsi together control 97% of the 4 entire Indian markets.

The rest of the 3% is shared by companies like Cadbury-Schweppes and Cola. The

total no. of case sold is 140 million of these 77 million cases of Cola drinks are

sold and 63 million of non-cola drink.

There is a rapid increase in the sale of cola soft drinks. Whereas in 1990, they

accounted for a third of all soft drinks sold, now their share is well over half.

Also cola sales are growing at a faster rate than non-colas.

One of the reasons for this could be the aggressive marketing strategies for Cola

drinks by Pepsi and Coca-Cola. The race to quench the great Indian thirst had

deigned.

Market of Coak in the Indian market is 39%, Pepsi 23% and Mountain Due 15%

and other is 5%.

Pepsi is higher up on the scale than Coca-Cola. We 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 Coca-Cola.

Share of Coak in the Indian market share is 51%, Pepsi 44%and local brand 5%.

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Recommendations

After completion of the research work the researcher came to some conclusions which

could help the company in development & improvement of service process. This is

helpful in future development of the company. The following points come in the

suggestion parts which came after the analysis and conclusion of the research:-

The company should improve the quality of the product.

The company should improve its promotional activities through advertisement,

free gifts coupons etc. Since the price of the product is also an important factor

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which influence the purchasing decision so the company should design the

products price according to the customer affordance level.

Company should instruct the sales representatives not to make extra ordinary

commitments on behalf of the company for sale.

The distribution channel should be arranged according to the convenient of the

customer.

soft drink Company should try to emphasis more on providing their

Infrastructure in the market to facilitate their customers.

Soft drink Company should produce their product according to the local

demand.

Marketing team should try to increase the availability of soft drink in rural areas.

Now young generation has a trend to drink coke & other brands 2 regular bottles

at same time, so providing more satisfaction to them company should introduce ½

liter disposable bottle.

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Conclusion

Coca cola one of the most famous brand and also market leader need no introduction. We

can see how it has acquired the whole world. Marketing plan of any product takes a lot of

procedure and plan. Coca Cola has proved to be the market leader in soft drink. It

acquires the maximum. After thorough research, we come to the conclusion that the

marketing strategy of Coca Cola is working for them and the product is gaining

popularity among youth day by day. This project has been helpful in

understanding the meaning of Brand Rivalry. It was noted that Brand

Rivalry is an extra aggressive in competit ion between two different brands

to reach at number one or to capture more market share. In the most

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aggressive variants, ethics, moral values and even the law can be

neglected and it is only a race to reach the number one position which

drives the brand. Through this project we were able to understand how

Pepsi & Coca-Cola were formed and the problem faced by them in the

initial years of operation and how did they overcome all those difficulties.

This project made known to us how Pepsi & Coca-Cola being the prominent brand

rivalries fought fiercely against each other through their production tactics, marketing

strategies and advertisements. All through this war which continues even to this day, both

the brands have done their level best to convince the people that one is better than the

other. Through this project we also discussed various differences that exist between the

strategies and techniques adopted by both of them to sell out their product. Therefore, I

hope that the project has met its aim. In fact, all of the battles have seen a conclusion....a

victor and a loser; but in the case of Pepsi & Coca-Cola, while both sides still claim a

victory, the jury is still out the public is still undecided and the soda still stands in

solitude. As the bottom line conclusion, the battle of Coca-Cola versus Pepsi does not

seem to end. It is like they are arch enemies for each other. Nevertheless, it is always

interesting to see the market battle between these two soft drink products.

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Limitations of the Research

1. This report covers whole India growth of soft drink industries in India, which is

very difficult to get.

2. In a rapidly changing industry, analysis on one day or in one segment can change

very quickly. The environmental changes are vital to be considered in order to

assimilate the findings.

3. Sometime the gap of communication was come in between the interaction.

4. The time available to conduct the study is little; it being a wide topic has a limited

time.

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5. Limited resources are available to collect the information about the soft drink

industries in India

6. Soft drink industries in India are so much volatile and it is difficult to forecast

anything about it.

7. Some of the aspects may not be covered in my study, its gives knowledge about

trading of soft drink industries in India in small prospects and its challenges.

8. Reforms allowed increased integration between domestic and international

markets, and created a need to manage risk.

Bibliography

Books/Magazines Referred:-

Kotler, Philip & Armstrong, Graw- “Principle of Marketing”,

Pearson Education, New Delhi 2007.Publisher- Dorling

Kindersley (India) Pvt. Ltd.

Kotler, Philip- “Marketing Management”: Analysis, planning,

Implementations & control, Pearson Education, New Delhi

2003, 11 t h Ed ition.

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Kothari C. R. – “Research Methodology” 2n d revised edition

2004 published by New Age International Ltd.

Beri- “Marketing Research” (Tata Mc Graw-Hill), 1993 2 n d

Edition.

“Marketing Strategy and Management”- Mr. Michael J.

Baker.

Gupta CB-“An Introduction to Statistical Method (Vikas)”,

1995, 9 t h Edition .

Eveready In-house Newsletters.

BUSINESS MAGAZINE & NEWS PAPER:

The Times of India

The Economic Times

4Ps, Pitch, Business & Economy

Business Word& Business Standard

Business Today

Business

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Internet:

www.google.com

www.wikipedia.org

www.slideshare.net

www.coca-cola. com

www.pepsi.com

www.scribd.com

www. realversus.com

www.investmentu.com

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