pepsi project report

PROJECT REPORT

PrefaceThe beverages sector in India is one of the largest in terms of production, consumption, export & growth prospects. These are two major sectors in the beverages industry, i.e. Alcoholic Sector & Non Alcoholic Sector.

The purpose of this project is to find out the factors that affect the choice of consumers when they purchase soft drinks (Non Alcoholic Beverages), the brands preferred by the consumers for different flavors & about the consumption pattern for different soft drinks.

Chapter one includes the introduction of the beverage industry framework of India beverage industry & explains in detail about the non alcoholic beverage sector.

Chapter two contains objectives of the research study & the research methodology used for the project.

Chapter three also includes the analysis & interpretation of the research study.

Chapter four has various finding, conclusion & suggestions.

Executive summary

Soft Drinks Bounces Back

After a somewhat subdued performance in 2006 due to a recurrence of the pesticides controversy, soft drinks sales bounced back strongly to record double-digit volume growth in 2007. With carbonates growth back on a positive upward curve alongside burgeoning sales of fruit/vegetable juice and bottles water, soft drinks showed impressive growth in 2007. Off-trade volumes grew slightly faster than on-trade volumes, driven by higher consumption of packaged and branded soft drinks at home and on the go. The emergence of supermarkets/hypermarkets, heavy consumer promotions and various new product launches played a key role in driving off-trade volume growth.

Bottled Water and Fruit/vegetable Juice Continue to be Star Performers

Soft drinks sales in 2007 were propelled by bottled water and fruit/vegetable juice with their healthier positioning helping to drive sales of soft drinks. While carbonates posted single-digit growth in 2007, rebounding from the pesticides controversy of 2006, it was bottled water and fruit/vegetable juice that stormed ahead with high double-digit growth rates. Poor municipal infrastructure for tap water has pushed sales of bulk packaged water to households. Fruit/vegetable juice is growing as a result of increased consumer expenditure on naturally healthy (NH) beverages. While functional drinks and RTD tea also posted impressive growth in 2007, they were growing from a very small base and are yet to achieve a critical mass in terms of establishing a loyal consumer base.Coca-Cola India and PepsiCo India slip in shares

With consumers showing a growing preference for healthier soft drinks such as bottled water and fruit/vegetable juice rather than carbonates in 2007, the two carbonates giants suffered a marginal decline in share. Although both players embarked on a change in strategy to focus more on non-carbonated soft drinks in their portfolios, they were unable to maintain share and lost out slightly too home-grown players Parle Bisleri and Dabur India. Coca-Cola India launched Minute Maid and pushed the sales of its juices while PepsiCo India heavily promoted Tropicana, Aquafina and Gatorade during 2007. In addition, Coca-Cola India and PepsiCo India embarked on re-branding themselves as total beverage players and not just carbonates players.

Booming Modern Retail Brings Many Opportunities for Soft Drinks Players

With the retail scene in India undergoing a rapid metamorphosis with the establishment of supermarkets/ hypermarkets and convenience stores, soft drinks sales have benefited positively. People in urban areas are increasingly flocking to supermarkets to pick up specialty items that are not available in the kirana stores that are found all over India. Modern retail outlets have provided soft drinks players with many opportunities to push their brands. Consumer promotions for fruit/vegetable juice and emerging sectors such as RTD tea and functional drinks are driving product sampling. Attractive point-of-sale (PoS) displays and gift packs of concentrates are also drawing consumer attention in supermarkets/hypermarkets.

Healthy Drinks to Drive Forecast Growth

Soft drinks is expected to post a strong performance on the back of increasing affluence amongst consumers and evolving lifestyles which lead to consumers devoting less time to preparing fresh food and drink at home. Competition from the unorganized sector will diminish gradually as consumers show greater aversion to buying unpackaged and unbranded soft drinks from street vendors due to health and hygiene concerns. Rising health consciousness is also expected to drive sales of naturally healthy (NH) soft drinks such as 100% juice and mineral water. In addition, soft drinks such as sports drinks and juice-based carbonates are also expected to fare well over the forecast period as consumers perceive them to be healthy.Beverage Industry

EMERGING BEVERAGE TRENDS The beverage industry is a shifting landscape as volume leading categories such as soft drinks and beer continue to experience share erosion while functional and health & wellness oriented categories enjoy double-digit volume growth: Soft Drinks -3.9%

Domestic Beer -1.2%

Energy Drinks +53%

Bottled Water +25%

RTD Tea +23%

Sports Drinks +19%

The Indian Beverage MarketIndias one billion people, growing middle class, and low per capita consumption of soft drinks made it a highly contested prize in the global CSD market in the early twenty-first century. Ten percent of the countrys population lived in urban areas or large cities and drank ten bottles of soda per year while the vast remainder lived in rural an eras, villages, and small towns where annual per capita consumption were less than four bottles. Coke and Pepsi dominated the market and together had a consolidated market share above 95%. While soft drinks were once considered products only for the affluent, by 2003 91% of sales were made to the lower, middle and upper middle classes. Soft drink sales in India grew 76% between 1998 and 2002, from 5,670 million bottles to over 10,000 million and were expected to grow at least 10% per year through 2012.2 8 In spite of this growth, annual per capita consumption was only 6 bottles versus 17 in Pakistan, 73 in Thailand, 173 in the Philippines and 800 in the United States. With its large population and low consumption, the rural market represented a significant opportunity for penetration and a critical battleground for market dominance. In 2001, Coca-Cola recognized that to compete with traditional refreshments including lemon water, green coconut water, fruit juices, tea, and lassi, competitive pricing was essential. In response, Coke launched a smaller bottle priced at almost 50% of the traditional package. INDIAN HISTORY

India is home to one of the most ancient cultures in the world dating back over 5000 years. At the beginning of the twenty-first century, twenty-six different languages were spoken across India, 30% of the population knew English, and greater than 40% were illiterate. At this time, the nation was in the midst of great transition and the dichotomy between the old India and the new was stark. Remnants of the caste system existed alongside the worlds top engineering schools and growing metropolises as the historically agricultural economy shifted into the services sector. In the process, India had created the worlds largest middle class, second only to China. A British colony since 1769 when the East India Company gained control of all European trade in the nation, India gained its independence in 1947 under Mahatma Ghandi and his principles of non-violence and self-reliance. In the decades that followed, self-reliance was taken to the extreme as many Indians believed that economic independence was necessary to be truly independent. As a result, the economy was increasingly regulated and many sectors were restricted to the public sector. This movement reached its peak in 1977 when the Janta party government came to power and Coca-Cola was thrown out of the country. In 1991, the first generation of economic reforms was introduced and liberalization began. STORY OF SOFT DRINKS The Soft drinks can be segmented on the basis of point of purchase or on the basis of type of products. The story of soft drinks is fascinating, since the beginning of life the most pressing needs of all living beings is food & sweet juice when cut open, ditto the watermelon & fresh coconuts. Man Learnt the Secrets of these Sources &used them as additional pleasant aid drinks beside water. As year passed in thousands, man tried to imitate nature in preparing these drinks so as to use them as well. As a result of laborious Search in 1772, Joseph priestly combined carbon dioxide with water & artificially produced arched water bubbling with gas spread quickly & artificially produced arched water bubbling with gas spread quickly & parched mouth begin to consume this.

The Segmentation on the basis of point of purchase divides the market into two parts on premise 80% of the Consumption of Soft drinks is done Premise i.e. restaurants, railway station, cinema hall etc.At Home:

The rest of 20% of the market compromises of the soft drinks purchased for consumption at home. The market can also be segmented on the basis of products. The segment could be as follows This account for 62% of the total soft drinks at all India level. The brands that fall in this category are Pepsi, Thums up, Coke. Non-Cola segment, which can be further, divided as orange. This segment has 19%share of the total market. Mirinda orange (of Pepsi) Fanta & and Gold Spot (Both of Coke) & crush represent the orange segment.Lime:

This segment represents 14% of the total market. Cokes Limca &Pepsis Mirinda fall in this category.The market leader is close to 70% market share of this segment but sprite has considerably cut into this market. Mango, Slice Mangola & Maza is the leading Mango drink. Mango Drinks account for about 3% of the soft drinks market. There is very thin line of difference between the clear & cloudy lime. The most obvious feature is that clear lime has to be bottled in green bottles as sunlight harms the drinks & change the taste.THE INDIAN SOFT-DRINK INDUSTRY SCENARIO

Domestic firms in India, which once enjoyed the benefits of sheltered markets, are increasingly facing competition from global giants in 1990s. Sheltered market had once allowed Indian entrepreneurs to develop strong brands that have held there own against the onslaught of the multinational companies. Some domestic firms have chosen the strategy of tie-ups with MNCs. Others have tried to meet the competition head on.

Whatever route Indian firms take to deal with competition from MNCs it is imperative for them to keep track of global strategies of these firms. Often the strategies undertaken at the local level are only part of the global strategies, because it is difficult for any firm to allow significant differences in approach in different markets.

Coca-Cola controlled the Indian market until 1977, when the Janta Party beat the Congress party of then Prime Minister Indira Gandhi. To punish Coca Colas principal bottler, a Congress party stalwart and long time Gandhi supporter, the Janta government demanded that Coca Cola transferred its syrup formula to an Indian subsidiary. Coca Cola backed and withdrew from the country.

India now left without both Coca Cola and Pepsi became a protected market. After Coca Cola made its exit from Indian market in1977, there was a vacuum in the soft drink market, advantage was taken by Parle and Pure drinks. Parley launched Thumps Up and gained a substantial and robust market share.

In 1977 with a change in the government at the centre led to the exit of coke, which preferred to quit rather than dilute its equity to 40% in compliance with the provisions of FERA, the first national cola drink to emerge was Double Seven. In the mean time, Pure Dinks, Delhi, on Cokes exit switched over to Campa Cola, and, by the end of 1970s, Campa Cola was practically alone in the Cola market.

Parle introduced Thumps Up in the beginning of 1980s, followed by thrill by McDowells and Double Cola by Double Cola manufacturing Company (DCMC)-an NRI-run outfit with its plant at Nasik. An additional dimension to the Indian soft drink industry was that of fruit drinks, which were valued at Rs. 40 Crores and among the brands in the market, the leader was Parles Fruity with about 40% of the market share. The other players in this segment who have posed challenges to Parle are Godreg(with Jumpin) and Ahemdabad bases Pioma Industries Rasna Cola-Cola.Setup in 1949, by 1978, Parle led the Indian soft drinks market with a share of 33%. Gold Spot and Limca were the clear winners, and later, Thumps Up also started contributing to its growth. Thus, Parley touched a market share of around 60% in 1990. However, with the arrival of Pepsi, Parles share decreased to 53% and Pepsi quickly attained a market share of about 20 percent.

Till 1990, Parles chief rival was Pure Drinks, which was steadily losing out to Parley. After the arrival of Pepsi, the market share of Pure Drinks further deteriorated. This was mostly because Pure Drinks had smaller number of bottling plants and a limited distribution network exactly the same reason why Pepsi could not do much against Parle. Parle had 60 bottlers against Pepsis 20 and 2.1 lakh retailers against Pepsis 1.5 Lakh.

Before 1992 , the Indian soft drink industry had not grown fast mostly due to high excise duties and government encouragement of fruit drinks over carbonated drinks. The Limca was largest selling brand of bottled soft drinks in India, from consumers point of view Cola was the most popular flavor. It accounted for about 40 percent of the market. Lime and Lemon drinks followed with about 30 percent, and Orange drinks had only about 20 percent of the market share. Carbonated soft drinks accounted for the rest 10 percent. From 1984 to 1992, the Rs, 1,200 Crore Indian soft drink industry grew at an average of 2.5 to 3 percent, the highest being 12.4 percent during 1984-1985.

Pepsi had begun its efforts in mid 1980s but only in 1990 it was able to make an entry in the Indian Cola market. In early 1985, the then government rejected a proposal with RPG GROUP. This involved the export of fruit juice concentrate from Punjab in return for the import of Cola concentrate. The deal offered was a 3:1 EXIM ratio.

The revised proposal made by Pepsi also met lots of resistance. The strongest opposition to the proposal came from the food and civil supplies ministry, which argued that India should be promoting fruit juices, not carbonated soft drinks. Opposition also came from CSIR, one of whose laboratories developed its own soft drink flavors. After more than 5 years of acrimonious battles Pepsi was finally launched in India in June 1990. To obtain the license for India, Pepsi had to export $5 of locally made products for every $1 of materials imported, and it had to agree to help the Indian government to initiate a second agricultural revolution. Pepsi has also had to take on Indian partners. Pepsi Co, Punjab Agro Industries Co-Operation (PAIC) and Voltas promoted the project. Pepsi had a very significant first mover advantage in the Indian market. It did not have the condition of divestment of 49 per cent equity in downstream ventures attached to it when it received permission to invest in India. Pepsi had obtained the government approval for its downstream ventures prior to the FD1 guidelines that made Indian equity holding mandatory. Thus, in its original clearance, Pepsi was not only allowed to hold 100 per cent equity .in its holding company but was also allowed to carry out bottling and marketing operations.

The government approval, moreover, had allowed Pepsi to earn* out acquisition of assets to expand its business in the country. Pepsi used this clause in its approval to buy out 100 per cent stake in some of the domestic bottling companies including its high profile buyout of Gujarat Bottling Company, the former Coke franchisee in Ahmedabad. (Industry ministry sources have clarified that while Pepsi would be required to seek fresh government approval if it picks up shares in domestic bottling companies as part of its portfolio investment, it does not need such approval if the assets are acquired for expansion.)

There was now a triangular battle between Parle, Pepsi and Pure Drinks. Pepsi launched 250 ml bottles in June 1990 to capture the 250 ml bottle-market of Thums Up (launched in November 1989). As a response, Thums Up ran ads downgrading Pepsi's taste and declared that it was a fast drink. Thums Up entered the brand war totally with blind taste test ads.

Thums Up launched Double Maha Cola, the 500 ml bottle, to prove that bigger is better in cola wars and was again first to introduce 'takeaway' 250 ml bottles for the first time in the Indian cola market. Pepsi got into more trouble when six months after its launch it caught government's attention regarding its commitments. Soon after, a show cause notice was issued to the company for prima facie violation of the conditions stipulated in the letter of intent with regard to the production of soft drink concentrate.

Coca Cola came back to India after 16 years when it was launched on October 24, 1993, at Agra. Coca-Cola was initially wooed by the Godrej group, Great Eastern Shipping and the Britannia Industries Ltd, led by Rajan Pillai. In March 1991, it signed an MOU (Memorandum of Understanding) with BIL and this proposal was accepted by the Chandrasekhar government. But relationship between the two companies turned sour over the export-oriented clause and finally on June 23, 1993, Coca Cola got the permission to enter the country with a 100 per cent unit in India. On September 22. 1993, the company bought out the Parle brands.After the second coming, of the international varieties of Cola drinks, the market has witnessed a high-profile tussle between the global giants - Coca-Cola and PepsiCo. This tussle and the respective problems faced by the two firms in the Indian market are extremely instinctive. PepsiCo gained a significant first-mover advantage through its ability to gain early access to the market. Coke, after a couple of abortive attempts, seemed to have made an entry under ideal conditions in the market. However, it then faced dissensions within the ranks of its bottlers. Its manner of dealing with the bottlers seemed to lack Pepsi's finesse and India seemed to be one of the rare markets where Pepsi was holding its own against Coke and consolidating its position.

The companies have continued to wage their war in India. Coke, with the strategic move of buying out Parle, gained a huge market share overnight. Hut Pepsi is sparing no efforts to gain a larger share of the market. The potential in the Indian market is tremendous. The Indian market is roughly more than Rs 1,200 crore; moreover, the per capita consumption of three bottles in India is lagging way behind the US's astounding 700 bottles per capita consumption.Both Coke and Pepsi have rightly realized that the immediate priority is in expanding the market by increasing the growth rates. The Indian market averaged a growth rate of 2.5 per cent between the years 1984-92. From 1992, when the Cola war took a serious turn, the growth rate has almost doubled. In 1995 the market grew by 20 per cent in volume term, with estimated sales of 140 million cases (one case :- 24 bottles of 300 ml each) up from 115 million cases in 1994.The industry, prior to 1990, was witnessing sluggish growth rates (CAGR: around 5 per cent) with two domestic players: Parle and Pure Drinks. The entry of the cola giants, Coke and Pepsi, led to a rapid expansion in the size of the market (CAGR for the first half of the 1990s: around 20 per cent). Coke's acquisition of Parle has turned the market into a duopoly. Also not only the market size is increasing, there is also a shift of consumer preference between the different soft drink segments. Whereas in 1990, cola was accounting for a third of all soft drinks sold, today it accounts for well over a half.

COMPANY PROFILE

In 1902 the Pepsi Cola Company was launched in the back room of pharmacy and was applied in patent office for a trademark. The business begins to grow on June 16, 1903 Pepsi Cola was officially registered with the US patent office. That year Cola sold 7,968 gallons of syrup using them in exhilarating aids digestion. It also awarded for franchised to bottle Pepsi to independent investors, where number grew from just two in 1905 in cities of charlotte and Durham, to 15 the following year, and 40 by 1907.

Gold Spot is considered as the first branded soft drink in India. It was introduced by Parle in early forties. Coca-Cola was the first foreign soft drink to be introduced in Indian markets. The Coca-Cola Company entered India in the early fifties, when four bottling plants were setup at Bombay, Calcutta, Delhi and Kanpur. Coca-Cola enjoyed a good beginning and dominated the market. Parle exports private Ltd. the major domestic player later in 1970 introduced Limca, a lemon soft drink. Before Limca introduction, they had attentively introduced Cola Pepino which was soon with from the market.

In July 1977 Coca Cola left India following a public dispute over share holding structure and import permits. As per FERA regulations the company was required to indicate or clear operation. Coca-Cola left a big gap, which was filled by several companies who came forward pushing different brands in market.

Parle products introduced their cola Thums Up; pure drinks introduced Campa Cola along with orange and lemon. Modern Bakeries introduced Double Seven Thrill Rush and Aprint. At the same time various regional soft brands played an independent role in their respective territories like Duke and Mangola etc.

After Coke was asked to leave India Pepsi began to lay plans to enter this huge market. Pepsi worked with an Indian business group in seeking govt. approval for its entry over the objections of both domestic soft drink companies and anti-multinational legislators, Pepsi saw the solution to lie in making an offer that Indian Govt. would find hard to refuse. Pepsi offered to help India export some of its agricultural products in a volume that would cover more than the cost of importing soft drink concentrate. Pepsi also promised to focus considerable selling efforts on rural areas to help their economic development. Pepsi further offered to transfer food processing packaging and water treatment to India in the way Pepsi started its operations in April 1989 for beverages, snack food and export business. In 1990 first Pepsi, Cola was produced in India.

PepsiCo entered India in 1989 and in the span of a little more than a decade, has grown to become the country's largest selling soft drinks company. The Company has invested heavily in India making it one of the largest multinational investors. The group has built an expansive beverage, snack food and exports business and to support the operations are the group's 39 bottling plants in India, of which 17 are company owned and 22 are franchisee owned.

PepsiCo stays committed to providing its consumers with top quality beverages. Its diverse portfolio of brands include the flagship cola brand - Pepsi; Diet Pepsi; 7Up; Mirinda; Mountain Dew; Slice fruit drink; Tropicana brand 100% fruit juices in various flavors; Aquafina packaged drinking water; Gatorade plus local brands Lehar Evervess Soda, Dukes Lemonade and Mangola. PepsiCo is one of the largest MNC exporters in India and its export business consist of three categories - agri business, commodities and Pepsi system sales. PepsiCo has made significant investments with the Punjab Agriculture University to develop a comprehensive agro-technology Programmed that has helped thousands of farmers across India improve the yield of their farms and the quality of their agricultural products. PepsiCo has leveraged its knowledge in contract farming to develop seaweed cultivation in Tamil Nadu and has partnered with the Government of Punjab to help farmers of the state through the utilization of developed technology for citrus farming.

PepsiCo India has worked closely with the Defense forces in rehabilitation of Defense Personnel through projects like Mission Vijay-2. Under this project Pepsi in association with Castrol helped soldiers set booths in rural area to sell Pepsi and Castrol products there by helping them to not only earn a decent living but to also add some color to their lives. Through this project PepsiCo India also tries to give these soldiers distribution rights for its soft drinks. In the next year, 1991 production on Mirinda and 7 up started. The production of Slice, Teem and Fountain Pepsi started in 1993 Coca-Cola came back again in October 1993 and launched in Agra. It joined hands with Parle Export Pvt. Ltd. to enter India and gradually took over the same company. The nineties also saw a new foreign entrant called Cadbury Schmeppes, which rolled out Canada Dry and Crush in Metropolitan cities.

Pepsi entered the cloudy lemon category by launching its Mirinda Lemon in 1998. In may 1999, a notification, presenting the presentation of food Adulteration (Fourth Amendment) rules 1999, allowed the use of the blended artificial sweeteners, as part time and a successful fame potassium in the formulation of soft drinks, which in what made the entry of diet Pepsi and diet coke. Coca-Cola also rolled out its popular clear lemon drink sprit in India at same year, 1999.

Whats in Pepsi?

Pepsi contains: Carbonated water, High fructose Glucose syrup/or Sugar color, Phosphoric acid, Caffeine, Citric acid and natural flavors.Calories

100

Total Fat (gm)

0

Sodium (mg)

25

Potassium (mg)

10

Total Carbohydrates (gm)

27

Sugars (gm)

27

Protein (gm)

0

Caffeine (mg)

25PEPSICO HEAD QUARTERS

Pepsi co India world head Quarters is located in Purchase, N.Y. approximately 45 minutes from New York City. Edward Darrel Stone, One of Americas foremost architects, designed the seven-building headquarters complex that includes the Donald M.Kendall Sculpture collection in a garden setting.

The collection of works is focused on twentieth century & features work by masters such as Auguste Rodin, Henri Laurens, Henry Moore, Alexander Calder, Alberto Giacometti, Arnaldo Pamodoro & Claes Oldenburg.COMPANYS GLOBAL STRATEGY Set a winner growth goals if you act like number two, you will always be number two.

Hiring people who love change and thrive on risk taking.

Upset the rules of the market place. .

Always anticipate the response you may provoke.

Execution of a plan often derive success more then more marketing

Encourage Executives to think laterally.

Conjure Up those creative tactics to knack fizz out of its competition.

PEPSICO MISSIONWe dedicate our efforts to- In India, only 40% people drinks soft drinks. So the main mission of Pepsi is to capture the Rural Markets to make it a one-man show.

Hiring & training People who single handedly drive the business forward.

Providing courteous, prompt & efficient service to our customer.

Building long-term prosperity of our brands in the market place.

Exploring & developing opportunities that helps in building competitive edges.MARKET SIZE AND GROWTH RATEThe particular feature of market is that of positioning & targeting of various brands while cola brand of Coke is targeted at teenagers & is positioned as refreshment for mind & body. The Thums up brand is targeted at people in age group & is positioned as fun drink.Soft Drink market size for Fy00 was around 270mm cases (6480ml bottle). The market, which was witnessing 5-6% growth in the early 1905 & even slower growth at around 2-3% in the late 80s. Presently the market growth has slowed down with growth rate of 7-8 per annum dawn with growth rate of 7-8% per annum compared to 22% growth rate in the previous year. The market size for Fy01 is expected to be 7000mmbottles. The market growth of 22% till last year target still due to high excise duty of 40% leading to higher price of the end product. In terms of SKUS the market is Skewed towards 300ml which constitutes around 80-85% of the market rest in the form of other pack, Size, But with increasing occasion led & home refrigeration led consumption the sales of bigger SKUs like more than 1 liter pack size has increased this has led to increase contribution from pet bottles sales up to 75% are in Urban areas.

BRAND PROFILEPepsiCo Company provides five brands of Soft drinks. In all brands of Pepsi one is Soda, Second Mineral water and other are running successfully in the market. At present time Pepsi provides two new soft drinks. Dew Mountain and Blue Pepsi and above marketed with reasonably good success.

1. Blue Pepsi

2. Pepsi Diet

3. Miranda (Lemon + Mango)

4. Slice

5. 7up

6. Aquafina

7. Dew Mountain

Now here we will discuss about the market shares of each brands of soft drinks. There market share are as follows-

Soft DrinksMarket Share

Pepsi57%

Mirinda (Orange)16%

Mirinda (Lemon)2%

Slice1.5%

Teem SodaNot Available

7UP1.5%

Aquafina3%

Blue Pepsi2%

Dew Mountain8%

Pepsi Diet6%

Quantity Details of all brands of Soft drinks are given as below

SOFT DRINKSQuantity

Pepsi

Mirinda Orange

Mirinda Lemon

Slice

7up

Teem Soda

Pepsi Diet

Aquafina

Dew mountain

Blue Pepsi

200ml, 300ml, 600ml, 1lt, 2lt.

200ml, 300ml, 600ml, 1lt, 2lt

200ml, 300ml, 600ml, 1lt, 2lt

250ml, 500ml

200ml, 300ml, 2lt

300ml, 600ml

330ml, 500ml

1lt

200ml

500ml

PEPSI DISTRIBUTION CHANNELPepsi's main strategy is to operate franchisee (Franchisees owned Bottling operation). Pepsi indulges mainly in direct contribution lo retailer and resorts to indirect in certain areas. Pepsi distributes through three channels which is shown below:

There is no involvement of wholesalers in the distribution of products. It is more like an agent network. The companies have divided the country into various regions and established a franchisee in each region. The franchisees have their own bottling plants and manage all the day to day operations.PACKAGING

Packaging plays a vital role in increasing decreasing in the sales of the products. Thus, packaging of the product should be attractive and product should be available in different sizes. To keep in mind the importance of packaging PepsiCo and Coca cola is adopting new technology for looking the products attractive and producing the product in different size. The different pack sizes available are 200 ml, 300 ml, 330 ml (Can), 600 ml (promotional pack with 100 ml extra), I liters., 1.5 liters., 2 liters., and 200 ml / 250 ml (slice).RANGES OF DIFFERENT PACK AVAILABLE

1. GLASS 200 ml, 300 ml, 1 liter and 250 ml.

2. PET - 500 ml, 600 ml, 1 liter and 2 liter.

3. TETRA - 200 ml (SLICE)

4. CANS - 330 ml

IN GLASS

24 Bottles * 200 ml = 1 Case




IN PET

24 Bottles * 500/600 ml = 1 cartoons

12 Bottles * 1000 ml = 1 cartoons



TETRA


CANS

24 cans * 330 ml = 1 Case

ADVERTISING STRATEGIES ADOPTED BY AERATED SOFT DRINK INDUSTRY

Soft drinks is perhaps the most hard fought product categories in India in every respect - media, events, distribution, pricing, communication, endorsements and so on... Every year it consistently emerges as one of the top 10 categories on television. We, at AdEx India, have looked at year 2003 to understand the year that was for this exceptionally competitive segment!

One clear and predictable pattern in 2003 was the two clear peaks of ad spend - one during the world cup and the other during the festive time. Interestingly, while Pepsi dominated media budgets during World Cup, Coca-Cola seems to have been the dominant spender in the month of September.

This paper tries to throw some light on the following aspects: -

Genre wise and channel wise composition of advertising on TV

Advertising strategy adopted by the aerated soft drink players on TV and press

Zone wise and genre wise advertising on press

Specific case: zone wise and genre wise advertising for Pepsi and Coke

Genre wise analysis on aerated drinks establishes that this category is heavily advertised on feature films, music, cricket and soaps. Major part of the advertising on Cricket can be attributed to the fact that Pepsi was the official sponsor of the Cricket World Cup 2003. However, apart from cricket Pepsi is actively present on other types of sports such as soccer, wrestling etc.

FIGHT FOR THE MARKET SHARES

With the cola majors busy sharpening their arsenal, it's a pitched battle all the way -- whether on television or in the marketplace.'

According to figures released by IMRB, in the month of January-February, the combined market share of all carbonated soft drinks (CSD) beverages under PepsiCo's domestic product portfolio - including Pepsi, Mirinda Orange, Mirinda Lemon and 7 Up -- stands at 48.3 per cent. The IMRB data adds that with the exception of Mirinda Lemon, all PepsiCo beverages have led over Coca-Cola's brands in terms of market share in this period.

However, when contacted by Business Line, Coca-Cola's official spokesperson disagreed with these figures. According to ORG-MARG, which tracks market figures for Coca-Cola India, the combined market share of all Coca-Cola brands put together stands at 58 per cent. While declining to provide individual market share of brands under the company's portfolio, Coca Cola India's official spokesperson sa1d, "We do not agree with the figures given by PepsiCo. If our turnover last year was almost double theirs, how can their market shares be higher? The market shares they are stating are obviously questionable."

Pepsi's official spokesperson reiterated that among colas, which occupy close to 70 per cent of the approximately 270-millioncases CSD market, Brand Pepsi's market share stands at 51 per cent. The combined market shares of Coca-Cola and Thums Up stands at 49 per cent, according to IMRB.

In the carbonated orange segment, which accounts for roughly 15 per cent of the overall CSD market, the market share for Mirinda Orange has been estimated at 53' per cent by IMRB. The market share of Coca-Cola's Fanta brand is estimated at 47 per cent.

In the cloudy lemon segment, which accounts for roughly 10 per cent of the CSD market, Coca-Cola's Limca brand leads PepsiCo's Mirinda Lemon by a huge margin. Limca has a 75 per cent size of this segment, while the share of Mirinda Lemon is 25 per cent. According to industry estimates; the share of the cloudy lemon segment has slipped below that of the orange segment. PEPSICO: SOON TO HIT $ 1-BILLION MARK IN INDIA

PepsiCo will soon join the elite band of companies with $l-billion sales in India. The company currently has sales of $700 million. Since 1989 the $27 -billion food and beverages giant has invested $700 million in India and seen a steady double-digit growth in its volumes. "We are on track to make it the second or third largest," Steve Reinemund, chairman & CEO PepsiCo told the media in New Delhi. Reinemund's visit was preceded by that of E Neville Isdell, chairman of the board and CEO of The Coca Cola Company, who chose to visit India on taking charge of Coke's global operations a few months ago.

Reinemund said PepsiCo's Rs5-per-packaffor_bility strategy initiated by Coke and Pepsi had worked well in India and helped the company increase its consumer base from 150 million to 250 million. He said with the strategy PepsiCo had attained critical mass. "It is time now to increase the depth of consumption," he says.

However, he admitted that the company was forced to hike its prices recently as there was an affordability challenge all over the world. "We have learnt this lesson and reverted to higher price points (in India) after having achieved our objective of 150 million consumer footprints. Pepsi Co is now making operating profits in India and its exports are worth over $60 million, up from just $3 million in 1991. Reinemund was especially upbeat about the company's snacks business Frito Lay, in India, which he said was the fastest growing segment for five consecutive years. "India is clearly one of our priority markets," he said.

The company had no plans to make any structural changes in India said Reinemund, since of the 37 bottling plants in the country, 17 company-owned bottling plants accounted for 55 per cent of total production. He dismissed reports that arch rival Coke was closing in on the sales of Pepsi products and said Pepsi's leadership position was because Indians loved its products. Reinemund met finance minister P Chidambaram and planning commission deputy chairman Montek Singh Ahluwalia later in the day.

Sources said Reinemund was likely to discuss issues of future investments and the high taxation policy of the government towards the soft drinks industry and the overall fiscal environment with Chidambaram and other senior government officials. Coca-Cola and PepsiCo have been urging the government for lowering taxes, specially the special excise duty of eight per cent levied on carbonated soft drinks.

This is Reinemund's first visit to India and signifies the increasing importance of Indian operations for PepsiCo. India is now among the top eight businesses of PepsiCo worldwide in terms of beverage and snack sales and second only to China within Asia.ADVERTISING AND PUBLICITY

PepsiCo is one of the biggest end spenders in India. It is also one of the biggest global end spenders. It has a long list of endorsers from pop star Ricky Martin to film star Sharukh Khan, Karina Kapoor, Pritey Jienta, Saif Ali Khan, Fardin Khan and Amitabh Bachchan. Hindustan Thompson Associates, the big guest advertising agency of India has the account of PepsiCo, is known for its broad cast advertising but it also spends a lot in non broad cast advertising i.e. hoarding, banners, poster, stickers, specialties, hanger, dealer board, glow signboard, wall paintings and news paper, the expenses of these type of advertising are made at territory or unit level. Allahabad territory has assigned two local advertising agencies R. D. Associates and Krishna for its territorial advertising.

Pepsi's Products

COOLING FACILITIES AT OUTLET

The company has distributed 3,000 cooling approach at the outlet. The company has purchased these coolers from six different companies out of which few also provide maintained services. The companies are Alywn, Carrier, Kelvinator, Konark & Helchama.

In India 80% soft drink is consumed at the outlets &the rest 20% is consumed at homes, this requires the soft drink manufacturer to provide adequate cooling facilities at the outlets to make the soft drinks, ready to serve to the consumer. Pepsi Company wants to serve its customers with finished products. The company supplies final product to the retailers & it is retail outlet where the product is transformed into finished product. While serving the chilled soft drinks to customer, so the chilled Pepsi available at the retail outlets is the finished product.

The company has also installed deep freezers models of 100lt, 250lt &1000lt. This cooling equipment is the property of the company, which are installed at outlets to serve the customer. They are in stalled at those outlets, which have a deposit of 12 crates of empties upon each 10 liter capacity of the order & a potential of selling four carats annually on each Liter capacity of the cooler. The retailers are required to keep only PepsiCo product in these coolers.

The capacity of coolers varies from 65 liters to 330 liters. Most of the models have a transparent door, which makes the product visible. These models are called VISI coolers.

MARKETING SCHEMES

1. Free Flavors, To Retailers:

Company offers few bottle flavors free to retailers on purchase of one carat of flavor on some specific days. The free flavors scheme varies from one bottle to many bottles. 2. Display Rack Scheme:

This scheme is only for retailers. In this scheme company provides a Pepsi rack to retailer. The rack is filled with different bottles of Pepsi. The retailers are instructed that if they will maintain their racks in the same condition as it was when it was purchased. After completion of one-month different gift packs are distributed to the retailers. 3. Hai Koi Jawab:

This scheme was launched on 300ml bottle of Pepsi. This is U.T.C. scheme meaning Under the Crown. In this scheme some number are given under the bottle of Pepsi and company announces some lucky number. If this number is matched with the number under the crown number then the owner of that bottle wins different cash prizes.

4. Miranda U.T.C:This scheme was launched on 300ml bottle of Miranda. This is U.T.C. Scheme meaning under the crown. In this scheme some dollar amount is given under the bottle and the consumer may collect these dollars and add it. Company provided different gift packs on different crown number.

Their schemes are offered by the company to maintain the competition at it is offered on those days when Coca-Cola offers any similar scheme.

4 PS

4 Ps is the main features that directly affect the organization without 4 Ps organization is not able to produce the product. 4 Ps represent the main features of product. Many possibilities can be collected into four groups of Variables know as Four Ps i.e. product, price, place, promotion.

Product: -

Product means the good and service combination of the company offered to the target market. Company changes the sizes, variety, flavor brand name of the product after one or two year.

Price: -

Price is the amount of money which customers have to pay to obtain the product calculates suggested retails prices that its dealers might charge for sources. But dealers rarely charge the full sticker price.

Place: -

They are mostly available in al place but easily available in the Urban Market but not frequently found in Rural Market.

Promotion: -

Promotion means activities that communicate the merit of the product and persuade target customers to buy it. The measurement factor to promote the Pepsi product is to increase good transportation in rural market. If the Pepsi is available to capture the rural market then it is certain that it will occupy first position of soft drinks industry.

The Coca-Cola CompanyOne Coca-Cola PlazaAtlanta, GA30313Phone: 404-676-2121Fax: 404-515-5997Web Site: http://www.cocacola.com/DETAILS

Index Membership:

Dow Jones CompositeDow IndustrialsS&P 100S&P 500S&P 1500 Super Comp

Sector:

Consumer Goods

Industry:

Beverages - Soft Drinks

Employees (last reported count):

92,400

OFFICERS

PayExercised

Mr. Muhtar Kent ,

58 Chief Exec. Officer, Pres, Director and Member of Exec. Committee$ 5.60M

$ 0

Mr. Gary P. Fayard ,

56 Chief Financial Officers and Exec. VP$ 1.83M$ 0

Mr. Alexander B. Cummings Jr.,

52 Chief Admin. Officer, Exec. VP, Pres of Africa Group and Chief Operating Officer of Africa Group$ 1.59M$ 0

Mr. Jos Octavio Reyes ,

56 Pres of Latin America and Chief Operating Officer of Latin America$ 1.86M$ 0

Mr. Irial Finan ,

51 Exec. VP and Pres of Bottling Investments & Supply Chain$ 2.13M$ 0

Dollar amounts are as of 31-Dec-08 and compensation values are for the last fiscal year ending on that date. "Pay" is salary, bonuses, etc. "Exercised" is the value of options exercised during the fiscal year. .In 2001, after almost a decade of lagging rival Pepsi in the region, Coke India re-examined its approach in an attempt to gain leadership in the Indian market and capitalize on significant growth potential, particularly in rural markets. The foundation of the new strategy grounded brand positioning and marketing communications in consumer insights, acknowledging that urban versus rural India were two distinct markets on a variety of important dimensions. The soft drink categorys role in peoples lives, the degree of differentiation between consumer segments and their reasons for entering the category, and the degree to which brands in the category projected different perceptions to consumers were among the many important differences between how urban and rural consumers approached the market for refreshment. In rural markets, where both the soft drink category and individual brands were undeveloped, the task was to broaden the brand positioning while in urban markets, with higher category and brand development, the task was to narrow the brand positioning, focusing on differentiation through offering unique and compelling value. This lens, informed by consumer insights, gave Coke direction on the tradeoff between focus and breadth a brand needed in a given market and made clear that to succeed in either segment, unique marketing strategies were required in urban versus rural India. Rural SuccessComprising 74% of the country's population, 41% of its middle class, and 58% of its disposable income, the rural market was an attractive target and it delivered results. Coke experienced 37% growth in 2003 in this segment versus the 24% growth seen in urban are as.

Driven by the launch of the new Rs. 5 product, per capita consumption doubled between 2001-2003. This market accounted for 80% of Indias new Coke drinkers, 30% of 2002 volume, and was expected to account for 50% of the companys sales in 2003.Brand Localization Strategy: The Two Indies India A: Life ho to aisi India A, the designation Coca-Cola gave to the market segment including metropolitan areas and large towns, represented 4% of the countrys population.3 3 This segment sought social bonding as a need and responded to inspirational messages, celebrating the benefits of their increasing social and economic freedoms. Life ho to aisi, (life as it should be) was the successful and relevant tagline found in Coca-Colas advertising to this audience. India B: Thanda Matlab Coca-Cola Coca-Cola India believed that the first brand to offer communication targeted to the smaller towns would own the rural market and went after that objective with a comprehensive strategy. India B included small towns and rural areas, comprising the other 96% of the nations population. This segments primary need was out-of-home thirst-quenching and the soft drink category was undifferentiated in the minds of rural consumers. Additionally, with an average Coke costing Rs. 10 and an average days wages around Rs. 100, Coke was perceived as a luxury that few could afford.In an effort to make the price point of Coke within reach of this high-potential market, Coca-Cola launched the Accessibility Campaign, introducing a new 200ml bottle, smaller than the traditional 300ml bottle found in urban markets, and concurrently cutting the price in half, to Rs. 5. This pricing strategy closed the gap between Coke and basic refreshments like lemonade and tea, making soft drinks truly accessible for the first time. At the same time, Coke invested in distribution infrastructure to effectively serve a disbursed population and doubled the number of retail outlets in rural areas from 80,000 in 2001 to 160,000 in 2003, increasing market penetration from 13 to 25%.Cokes advertising and promotion strategy pulled the marketing plan together using local language and idiomatic expressions. Thanda, meaning cool/cold is also generic for cold beverages and gave Thanda Matlab Coca-Cola delicious multiple meanings. Literally translated to Coke means refreshment, the phrase directly addressed both the primary need of this segment for cold refreshment while at the same time positioning Coke as a Thanda or generic cold beverage just like tea, lassi, or lemonade. As a result of the Thanda campaign, Coca-Cola won Advertiser of the Year and Campaign of the Year in 2003.Corporate Social Responsibility

As one of the largest and most global companies in the world, Coca-Cola took seriously its ability and responsibility to positively affect the communities in which it operated. The companys mission statement, called the Coca-Cola Promise, stated: The Coca-Cola Company exists to benefit and refresh everyone who is touched by our business. The Company has made efforts towards good citizenship in the areas of community, by improving the quality of life in the communities in which they operate, and the environment, by addressing water, climate change and waste management initiatives. Their activities also included The Coca-Cola Africa Foundation created to combat the spread of HIV/AIDS through partnership with governments, UNAIDS, and other NGOs, and The Coca-Cola Foundation, focused on higher education as a vehicle to build strong communities and enhance individual opportunity.

Coca-Colas footprint in India was significant as well. The Company employed 7000 citizens and believed that for every direct job, 30-40 more we re created in the supply chain. Like its parent, Coke Indias Corporate Social Responsibility (CSR) initiatives were both community and environment-focused. Priorities included education, where primary education projects had been set up to benefit children in slums and villages, water conservation, where the Company supported community-based rainwater harvesting projects to restore water levels and promote conservation education, and health, where Coke India partnered with NGOs and governments to provide medical access to poor people through regular health camps. In addition to outreach efforts, the company committed itself to environmental responsibility through its own business operations in India including.

Environmental due diligence before acquiring land or starting projects. Environmental impact assessment before commencing operations. Ground water and environmental surveys before selecting sites. Compliance with all regulatory environmental requirements. Ban on purchasing CFC-containing refrigeration equipment. Waste water treatment facilities with trained personnel at all company-owned bottling operations. Energy conservation programs. 50% water savings in last seven years of operations

RESEARCH METHODOLOGY

Objectives of the study

Objectives of this research study are-

1. To study the brand preference for different kind of soft drinks.

2. To determine the factors that influences the consumer choice of a particular soft drink.

3. To study the consumption pattern & behavioral aspects of consumes such as frequency of consumption, quantity of consumption, place of consumption etc.

4. To study the sales promotion tool techniques sources of media that attracts consumers most.Scope of the study:

The research pertains to the study of consumer choice for soft drinks at Kurnool market. This study is attempt to analyze the present top brands preferred by customer for soft drink in Kurnool market, examine the product factors that influence the purchasing decisions of buyers and to know the relation between gender & preference for soft drinks & flavors.METHODOLOGYData collection The type of data collected for the research was primary as well as secondary.

Primary data was collected through:

Direct contact with the customers.

Questionnaires filled by the customers.Secondary data was collected through:

Various journals

Internet survey reportsField work and Sample

Defining the universe

Developing the sample frame

Selecting a sampling frame

Determining the sample size

Selecting the research instrument

Universe

The universe or population is the specific group of people is the specific group of people from conditions, activities, etc. which form the pivotal point of the project. For developing and using sample, it becomes the primary duty of researcher to define the population from which she\he intends to draw the sample. The universe of my project is about 130 consumers of Kurnool town, which formed the pivotal point of my project.

Sampling frame

A sampling frame may be defined as the listing of the general components of the individual unit that comprise the defined population.In case of my project, sampling frame is various consumers frame is various consumers including lower middle class, middle class and rich class.Sampling procedure

After defining the sampling frame, other important point to be discussed is which sampling procedure to be adopted.A simple random sampling technique will be used to understand customers outlook towards the soft drinks.Sample size

130 consumers of kurnool city an attempt will be made to make the sample representative of the whole population under study.

Research instrument:

Questionnaires were used to find out Factors influencing consumer choice of soft drinks in Kurnool with the help of the questionnaire, filled by 130 consumers, the result was analyzed.

The process was followed to prepare a questionnaire:

1. Specify the information needed.

2. Determined the types of questions to be asked.

3. Deciding the number and sequence of questionnaire.

4. Preparing preliminary draft of questionnaire.

5. Revised and protested the questionnaire.Limitations

Although the research was conducted in a way to ensure accurate results but certain errors might have occurred due to some unavoidable reasons. Some of the limitations of the project are:-

Data collection

1. Non-response by some of the respondents.2. Since the population is not homogeneous, some biasness might have creped in.3. The sample of convenience, thus it is not the true representative of the complete.MEASUREMENT ERRORThere was certain degree of misinterpretation by the respondents about the points raised in the interview.

Data Analysis and Interpretation1. Gender wise profile:No. of RespondentsIn%

Males7054%

Females6046%

Total130100%

Graph 1.1Interpretation:

As the above graph shows that there were equal male and female respondents, males were little higher than females by only 4%.2. Age wise Profile:

10-20 yearsIn %21-30 yearsIn %31-40 yearsIn %More than 40 yearsIn %Total

Male1217%2840%2130%913%70

Female1423%2033%1627%1017%60

Total2620%4837%3728%1915%130

Graph 2.1


As the above graph clearly depicts that most of males respondents [40%] were youth as fall into the category of 21-30 years. As the above graph clearly depicts that most of females respondents [33%] were also youth as they fall into the category of 21-30 years.3. Occupation wise Profile: ServiceIn %BusinessIn %ProfessionalsIn %Other [Students housewives etc.]In %

Male2840%1420%913.%1927%

Female1017%00%813.%4270%

Total3828.%1410%1713.%6147%

Graph 3.1


As the above graph clearly shows that there were most of males respondents [40%] were service category. As the above graph clearly shows that there were most of females respondents [43%] were housewives category 4. Income group wise profile:Less than Rs. 10,000In %

10,000-15,000In %

15,000-20,000In %

More than 20,000In %

Total

Male3753%913%913%1521%70

Female4270%47%813%610%60

Total7961%1310%1713%2116%130

Graph 4.1

Graph 4.2Interpretation:As the above graph clearly shows that there were most of males respondents [53%] were income group of Rs. Less than Rs. 10,000. As the above graph clearly shows that there were most of females respondents [70%] were income group of Rs. Less than Rs. 10,000.5. Ranking of different flavors of soft drinks according to choice of consumers:


The above graph shows that Mango Flavor is preferred most by the male customers than next is Cola & Lemon is least preferred by them.

The above graph shows that Orange Flavor is preferred most by the female customers than next is Mango & Cola is least preferred by them.

6. Brand recall of different soft drink brands:

Brand RecallColaPepsiThums upFantaSliceMirindaLimcaFruityMaza

Top of the mind recall70%60%60%65%60%40%45%55%60%

Unaided recall30%40%40%35%40%60%55%45%40%

Graph 6.1Interpretation: As the above graph shows that comparatively coke is at the top of the mind recall by most of customers [70%] and next is Pepsi. In Unaided brand recall Maza and Fruity.7. Ranking of factors that influence the consumer choice of soft drink:FactorsMaleFemale

Taste11

Price25

Health33

Weather42

Social Gathering54

Packaging66

Ads & offers78

Status87

Graph 7.1

Interpretation:Taste ranked as first factor affecting consumer choice by both male & female consumers. Price is ranked second by male consumers whereas health factor is ranked by female consumers which affect their choice of soft drinks.8. Consumption per week by consumers:Less than 5 timesIn%6-10 timesIn%More than 10 timesIn%UndecidedIn%Total

Male4767%1217%23%913%70

Female4474%813%00%813%60

total9170%2015%22%1713%130

Graph 8.1

Graph 8.2Interpretation:From the above graph we can say that most of the consumers [70%] are not having any regular schedule of consuming soft drinks. Both males [13%] & females [13%] consumer said that it is undecided and only 1.54% consumer said that they drink more than 10 times in week so it is not definite.9. Quantity of consumption at once:200ml.In%300ml.In%500ml.In%More than 500ml.In%Total

Male2333%2840%1927%00%70

Female2440%2440%1220%00%60

Total4737%5240%3123%00%130

Graph 9.1

Graph 9.2Interpretation:From the graphs we can say that [Both males & females] majority of the consumers [40%] prefer to drink these soft drinks in the quantity of 300 ml. at once & than next is 200 ml. with [37%] but there is big difference in consumer response for the rests of the options.10. Drinking Pattern:With groupIn%AloneIn%Total

Male5882.86%1217.14%70

Female5490%610%60

Total11287.69%1812.31%130

Graph 10.1 Graph 10.2 Graph 10.3Interpretation:

From the above it is clearly visible that mostly customers [87.69%] enjoy drinking these soft drinks when they are with group.11. Area of consumption:

HomeIn %Outside

locationIn %Cinema HallsIn %Social GatheringIn %B/C partiesIn %

Male1420%3043%1217%57%913%

Female2033%1830%1830%47%00%

Total3426%4837%3023%97%97%

Graph 11.1

Graph 11.2


As the about graphs show that mostly [37%] customers prefer drinking at outside location & at home/office and cinema halls. This means customer drink these drink whenever they go for outing locations.

12. Consumer choice when multiple choices are given without price.

SoupsIn %Hot drinksIn %Soft DrinksIn %Fruit juicesIn %Total

Male1420%913%2840%1927%70

Female1627%1017%2033%1423%60

Total3023%1915%4837%3325%130

Graph 12.1

Graph 12.2


From the above graph it is seen that when multiple choice are given to customers without any charge for that i.e. when price factor is excluded, then more than 37% customers prefer to drink soft drinks and next is Fruit juices, soups, tea/coffee respectively. 13. Sources of Information:News PaperIn %T.V. adsIn %HoardingIn %By retailersIn %Total

Male1217%4260%1217%47%70

Female610%4270%1017%23%60

Total1814%8464%2217%65%130

Graph 13.1

Graph 13.2

Graph 13.3Interpretation:From the above graph it is clearly visible that main source of information to customers regarding soft drinks is T.V. ads according to 64% customers.

14. Influence of Brand Ambassador Consumer choice of Soft drinks.

YesIn %NoIn %Total

Male4970%2130%70

Female2440%3660%60

Total7357130

Graph14.1Interpretation:From the above graph clearly depicts that here is a big difference among the response of male & female customer, as in the opinion of most of the male customers [70%] Brand ambassador influences their choice whereas in the opinion of female majority [60%] said that there is no impact of any Brand Ambassador upon their choice.

15. Preferred Celebrities as Brand Ambassador according to Consumers:Bollywood CelebritiesIn %Sports CelebritiesIn %BothIn %Other celebritiesIn %Total

Male3043%1217%2333%57%70

Female1627%2846%1220%47%60

Total4635%4031%3527%97%130

Graph15.1

Graph 15.2

Graph15.3Interpretation:

As the graph depicts that highest 35% people said that bollywood celebrities should be the brand ambassador of soft drinks and than 27% were with both but here is big difference among the choice of male & female customers.16. Most preferred sales promotion tools/techniques:Buy 2 get 1 freeScratch/ Magic cardsPrice discountsExtra Quantity offerSomething freeTotal

Male1273014770

Female1482210660

Total2615522413130

Graph 16.1

Graph 16.2


As per the analysis of above graphs that of the customers [40%] prefer price discounts then there is buy 2 get 1 free offer.17. Brand Loyalty among Consumers of Soft drinks:Brand loyalIn %Not Brand loyalIn %Total

Male2840%4260%70

Female1830%4270%60

Total4635%8465%130


As the above graphs show there are 35% customers who brand loyal but males are having much loyalty in comparison to females customers.Findings1. No. of Respondents:

There were total 130 respondents out of which 70 were males & 60 were females.2. Age group:

20% respondents fall into the age group of 10-20 years.



15% respondents fall into the age group of more than 40years.3. Occupation of respondents:

28% of the respondents were Service.

10% of the respondents were Business

13% of the respondents were Professionals

47% of the respondents were Students & housewives etc.4. Income group of respondents:

61% of the respondents fall into the income group of less than Rs.10,000.

10% of the respondents fall into the income group of 10,000-15,000.

13% of the respondents fall into the income group of 15,000-20,000.

16% of the respondents fall into the income group of more than Rs.20,000.5. Ranking of factors that influence the consumer choice of soft drink:

Taste ranked as first factor affecting consumer choice by both male & female consumers.

Price is ranked second by male consumers whereas health factor is ranked by female consumers which affect their choice of soft drinks.6. Ranking of different flavors of soft drinks according to choice of consumers:

Mango Flavor is preferred most by the male customers than next is Cola & Lemon is least preferred by them.

Orange Flavor is preferred most by the female customers than next is Mango & Cola is least preferred by them.7. Brand recall of different soft drink brands:

Comparatively coke is at the top of the mind recall by most of customers [70%] and next is Pepsi. In Unaided brand recall Maaza and Fruity.8. Consumption per week by consumers:

70% of the consumers said that their consumption per week of soft drink is less than 5 times.

15% of the consumers said that their consumption per week of soft drink is 6-10 times.

2% of the consumers said that their consumption per week of soft drink is more than 10 times.

13% of the consumers said that their consumption per week of soft drink is Undecided.9. Quantity of consumption at once:

37% of the consumers like to drink 200 ml. of soft drinks at once.



Zero of the consumers like to drink more than 500 ml. of soft drinks at once.10. Drinking Pattern:

87.69% of the consumers enjoy drinking soft drinks in group.

12.31% of the consumers enjoy drinking soft drinks alone.11. Area of consumption:

26% mostly consume these drinks at home/offices. 37% mostly consume these drinks at outside location.

23% mostly consume these drinks at cinema halls.

7% mostly consume these drinks at social gatherings.

7% mostly consume these drinks at business/corporate parties.12. Consumer choice when multiple choices are given without price.

23% customers prefer to drink soups when price factor is excluded.

15% customers prefer to drink hot drinks when price factor is excluded.

37% customers prefer to drink soft drinks when price factor is excluded.

25% customers prefer to drink Fruit juices when price factor is excluded.13. Source of information:

14% of the consumers said that they get information regarding different brands of soft drinks through News paper Ads.

64% of the consumers said that they get information regarding different brands of soft drinks through T.V. Ads.

17% of the consumers said that they get information regarding different brands of soft drinks through hoardings.

5% of the consumers said that they get information regarding different brands of soft drinks through by retailers.14. Influence of Brand Ambassador Consumer choice of Soft drinks.

70% of males consumers said that there choice is influenced by brand ambassadors.

Whereas 60% of the females consumers said that there choice is not influenced by any brand ambassadors.15. Most preferred sales promotion tools/techniques:

20% of the consumers like Buy 2 get 1 free.

12% of the consumers like Scratch/ Magic cards.

40% of the consumer like Price discounts.

18% of the consumer like Extra Quantity offer.

10% of the consumers like something free.16. Brand Loyalty among Consumers of Soft drinks:

40% male consumers were brand loyal and:

Only 30% female consumers were brand loyal for soft drink.Conclusion

Through this research study we conclude that

There many flavors but Mango flavor is liked most by the consumer. Cola & mango are also popular among male & female consumer respectively.

Generally people are not having any regular timing or drinking soft drink but we can assume that on an average every customer drink these drinks less than 5 times in a week.

Generally people prefer to drink 300 ml. quantity of soft drink at once.

Most of consumer s drinks such soft drinks in group.

Generally people drink these drinks at outside locations whenever they go for outing & cinema halls.

If price factor is not taken into consideration & multiple choices are given to consumer then they prefer soft drink most.

The most popular source of information regarding soft drink brands is T.V.

Brand ambassador has the influence on choice of most of the male consumer. But there is comparatively less influence on female consumer.

According to most of the male consumers bollywood celebrities should be the brand ambassador where as according to the most of female consumers sports celebrities should be the brand ambassador for endorsing soft drinks.

The three most preferred sales promotion techniques are price discount, but to get one free & something free with product respectively.

Half of the male consumers are brand loyal whereas female consumers are comparatively less who the brand loyal is.

The most influencing factor is price. According male consumers price is also having more influence but according to females health factor is much more influencing than price as they may be very health conscious.

Suggestions

Promotion of mango flavor :

Companies should focus more on the promotion of mango flavors of soft drinks because comparatively to cola drinks mango flavored drinks are very less advertised & promoted by soft drink brands where as according to our result cola flavor is more preferred by most of the consumers.

Maintaining taste & keep launching innovative flavors :

Companies should maintain the taste of its flavored drinks should keep improving the taste & quality of its drinks, companies may also launched some innovative mixed flavors of drinks where two flavors in one drink can be provide like orange-pineapple etc. it will give a different taste of customers.

Reduction in price :

Price is also major factor of consumers choice of soft drinks. So companies should try to decrease its price by decreasing its extravagant expenditure in advertisement to trap the market of those customers whose choice is very much affected with the price of soft drinks.

Diet drinks :

Health is also a major factor influencing consumer choices of many consumers. So fruit juice are giving tough competition to soft drinks. Companies should advertised its product in a manner in which its reflects that consuming their drinks will not harm any body. As coke & Pepsi have already lunched its drinks for the segment which is very much health conscious i.e. Diet Coke & Diet Pepsi respectively which are fat free. But companies should launch diet drinks in other flavors also. Especially in mango flavor as it is preferred by most of the consumers. Companies should try to win the trust of consumers that these drinks are not having pesticides contents more than limits by sponsoring some rational appeal based advertisement.

Quantity discounts :

Companies should try to increased the sales of its drinks for the purpose of increasing its offering in parties. As in parties consumers mostly prefer soft drinks even after having multiple choices, companies should provide quantity discount as in parties more quantity is purchased at once.

Humorous, creative & sensible ads :

As companies are already promoting their brands through T.V. ads but companies should take very much care of the target segment & should ensure that no ad should hurt the person directly or indirectly. Now a days ad with humorous appeals are like by viewers very much so there should be humorous creative ads on T.V.

Selection of brand ambassador :

Companies should get the endorsement from both Bollywood & Sports celebrities as most as the people like those ads where both of these celebrities endorse the product together.

Sales promotion :

For sales promotion companies should give the price discount as it is preferred by most of the customers. In of seasons companies already provide but if in the summer companies should price discount then it can be boost up there sales both in Rupees & volume. Companies should bye to get one free schemes also some complementary product also may be given with big bottle i.e. like two ltr. Brand loyalty :

As there were not more customers who are brand loyal & easily switch on to other brands. So companies should strengthen its distribution network & ensure the proper supply & arability of there drinks to prevent people switching on to other brands, companies should also organized activities and should do programs, seminars for social & moral causes to build its brand image & brand loyalty amongst the customers.AnnexureQuestionnaire for the study of factors affecting consumer choice of soft-drinks

Name

Gender:[ ] Male

[ ] Female

Age group:[ ] 10-20 years[ ] 21-30 years

[ ] 31-40 years[ ] More than 40 years

Occupation:[ ] Service

[ ] Business

[ ] Professional[ ] Student

[ ] Housewife[ ] Others________

Income group (p.m.) [ ] Less than Rs.10,000[ ] 10,000-15,000

[ ] 15,000-20,000

[ ] More than Rs. 20,000

1. Please rank the following flavors of soft drinks that you like most.

Cola_______

Orange________

Mango_____

Lemon________

2. Please name the brands of soft drinks, which you remember.

_________________________________________________

3. Please name the brand/s of soft drinks that you like most for following flavors.

Cola_______

Orange________

Mango_____

Lemon________

4. Please name the following that influence your decision when you purchase a soft drink? (On 1-8 scale, where 1 is highest & 8 is lowest rank)

Taste________

After effects/Health_________

Price________

Occasion/Social Gathering_______

Packaging______

Advertisement & offers_________

Weather/Heat_____

Status__________

5. How many times you drink these beverages in a week?

[ ] Less than 5 times

[ ] 6-10 times

[ ] more than 10 times[ ] Undecided

6. How much quantity of these do beverages do you consume at once?

[ ] 200 ml.

[ ] 300 ml

[ ] 500 ml.

[ ] More than 500 ml..

7. You enjoy drinking these drinks?

[ ] With group

[ ] Alone

8. Mostly where do you consume such drinks?

[ ] At home/office

[ ] At outside locations

[ ] At cinema halls

[ ] At social gathering

[ ] At corporate/business parties [ ] others_____

9. In a party, if following drinks are offered to you then whom drink you would like to take?

[ ] Soups

[ ] Hot drinks/coffee/Tea

[ ] Cold/Soft drinks [ ] Fruit juices

10. How do you get information regarding the different brand & flavors of these beverages available in the market?

[ ] Newspapers ads. [ ] T.V. ads.

[ ] Hoardings & Banners [ ] By retailers

[ ] Other________

11. Dose any brand ambassador of these drinks influence your choice?

[ ] Yes

[ ] No

12. Please name any brand & its brand ambassador.

Brand name_____________ Brand ambassador ____________

13. According to you, who should be the brand ambassador for soft drink?

[ ] Bollywood celebrities[ ] Sports celebrities

[ ] Both

[ ] Other celebrities_______

14. Which of the following sales promotion tools/techniques do you like most for soft drink?

[ ] Buy two get 1 free [ ] Scratch/Magic card

[ ] Price discount [ ] Extra quantity offer

[ ] Something free [ ] Others__________

15. Do you easily switch on to other brand when you do not get your favorite & desired brand/s for these drinks?

[ ] Yes

[ ] No

Thanks very much for your kind support & cooperation.

Bibliography:Marketing Management Philip Kotler

Marketing Management V.S Rama Swami & S.Namakumari

Research Methodology C.R.Kothari

Website of Hindustan Pepsi limited

http://www.pepsiindia.co.in/brands.aspx retrieved on 31st Jan 2010

http://www.pepsiindia.co.in/ retrieved on 31st Jan 2010PROJECT BACKGROUND

-

Beverage Market

PEPSI BOTTLING PLANT

WAREHOUSE

FRANCHISEE DEALERS

RETAILERS

CONVENTIONAL RETAILERS

NON-CONVENTIONAL RETAILERS

List Price

Discounts

Allowances

Payment Period

Creditors

Price

Product Variety

Quality Sizes

Features Services

Brand Name Warranties

Packaging- Returns

Product

Target

Customers

Intended

Positional

Promotion

Place

Channels

Coverage

Assortments

Locations Logistic

Inventory

Transportation

Advertising

Personal Setting

Sales Promotion

Public Relations

BIBLIOGRAPHY

COMPANY PROFILE

RESEARCH METHODOLOGY

ANALYSIS

&

INTERPRETAYION

PAGE 72

pepsi project report

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