INDIRA SCHOOL OF CAREER STUDIES CAREER DEVELOPMENT PROGRAM PGP Group Assignment- 2 On PRODUCT DIFFERENTIATION

Submitted to Prof. Rohit Singh Submitted by Brown group (Sunday morning batch)
GROUP ASSIGNMENT SUBMISSION Section A: Group Details: Assignment No.: Batch: / MBA Session Day & Time: Group Colour: Pink A2 IICS SUNDAY II BROWN E.g. A1 / A2 / A3 / A4 E.g. ISCS / ISBS E.g. SAT - I / TUE - II E.g. Green / Fl.

Section B: Assignment Details: Assignment Topic: Training Topic & Session: Submission Date & Time: PRODUCT DIFFERENTIATION DISCOVERING THE DIFFERENTIATION SATURDAY-1.00 PM E.g. Functional Matrices E.g. Negotiation - I E.g. Friday - 01:00 p.m.

Section C: Group Members: No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. Name ABHISHEK RAWAT MOUPI CHAKRABARTY KULVINDER SINGH ANUJ DESAI RAHUL THAPA GOPAL SATI KHUSHBOO GUPTA UTTAM RAJ SUSHANT JHA MOHIT KAPOOR Div. & Roll No. J-01 K-06 J-22 K-08 J-39 K-12 K-14 J-51 K-45 K-23 PC v v v v v v v v v v PN AB Grade A A A A A A A A A A

Remarks:
Respected Sir, We Brown Group member are grateful to you for giving us such a project which has increased our confidence and knowledge. It was a great experience and we thank you for being our mentor. This is our real life experience. We selected this particular product for our project and hopefully got good response.

Product differentiation

Presented By:Brown Group

ACKNOWLEDGEMENT
The information embodied in this project has been carried out under the supervision and assistance of Mr.Rohit Singh. We, the Brown Group express our whole hearted and sincere thanks to Rohit Sir, as without his guidance it would not be possible for us to accomplish our project on time. We also like to thank our each and every group member for their dedication and cooperation on this project.

Introduction
Pepsi was first introduced as "Brad's Drink" in New Bern, North Carolina in 1898 by Caleb Bradham, who made it at his home where the drink was sold. It was later named Pepsi Cola, possibly due to 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 to 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 1909, automobile race pioneer Barney Oldfield was the first celebrity to endorse Pepsi-Cola, describing it as "A bully drink...refreshing, invigorating, a fine bracer before a race." The advertising theme "Delicious and Healthful" was then used over the next two decades. In 1926, Pepsi received its first logo redesign since the original design of 1905. In 1929, the logo was changed again. In 1931, at the depth of the Great Depression, the Pepsi-Cola Company entered bankruptcy - in large part due to financial losses incurred by speculating on wildly fluctuating sugar prices as a result ofWorld War I. Assets were sold and Roy C. Megargel bought the Pepsi trademark. Eight years later, the company went bankrupt 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. On three separate occasions between 1922 and 1933, the Coca-Cola Company was offered the opportunity to purchase the Pepsi-Cola company and it declined on each occasion.

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.

Niche marketing
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 African 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, an 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 Bunche and photographer Gordon Parks.

Boyd also led a sales team composed entirely of blacks around the country to promote Pepsi. Racial segregation and Jim Crow 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, they were able to use racism as a selling point, attacking Coke's reluctance to hire blacks and support by the chairman of Coke for segregationist Governor of Georgia 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.

MARKET ANALYSIS

Demographics The global market. Elasticity-The relative effects of changes in price to demand. Market trends- The decline of sales in carbonated drinks. The rise off function soft drinks, juice, enriched vitamin water. streamlining of production lines.

DIRECT AND INDIRECT COMPETITORS

Direct- cola producers Super markets own brand. Coca- cola. Indirect- producers of all beverage type Tea/coffee. Water. Juice.

market research

for our primary research to be of use to our competitive analysis,they have various questions, they need answering and therefore split our survey into three parts:Branding. Promotion/advertising. Taste test.

product DIVERSIFICATION

In order for Pepsi to gain strength and to be more competitive in the market, beside as part of this merger, Pepsi has experienced growth in product diversification and distribution through the acquisition process. These acquisitions have included merger that is combining of two or more companies into a single corporation; such as merger Pepsi with Quaker Oats, merger PepsiCo with Crack Jack sweet snack food, and merger PepsiCo with Tropicana brand juices; this is to expand PepsiCos economies of scale. In addition, Pepsi also acquired into several restaurants applying related diversification through forward integration, this is because restaurant is one of the distribution channel to supply soft drink to consumers. Pepsi acquired those most notably restaurants, such as Pizza Hut, Taco Bell, and Kentucky Fried Chicken, to form Pepsi Food Service International (PFSI) in order for PepsiCo to focus on overseas development of restaurants. In the recent year Pepsi also applied the backward integration of related diversification strategy, by establishing its own bottling group through thePepsi Bottling Group (PBG) Strategy in March 1999.

Test marketing

Diet Pepsi was first introduced as Patio Diet Cola in 1963. After the drink received positive reviews, it was re-introduced as Diet Pepsi in 1964. In 1980, it was reformulated with the then-new aspartame sweetener, and carried the NutraSweet brand name logo on its packaging for the next two decades. Marketing In the United States Diet Pepsi is marketed as having no calories, as FDA guidelines allow products with fewer than five calories per serving to be labeled as containing zero calories. PepsiCo also markets low-calorie colas known as Pepsi Max and Pepsi ONE. When Diet Pepsi was introduced, it originally contained one calorie (just like Pepsi ONE) until the late '90s. Then it was marked to having zero calories. Advertising In 1985, immediately following Super Bowl XIX, the game's respective quarterbacks, Joe Montana and Dan Marino, meet in a hallway of what appears to be a football stadium. Montana of the winning team, buys Marino a Diet Pepsi, and Marino promises to buy the drink the next time. During the early-1990s, blues singer Ray Charles was featured in a series of Diet Pepsi ads featuring the brand's then-current tagline, "You got the right one, baby!" In the United States, Diet Pepsi commercials featured a Diet Pepsi vending machine (simply called Machine) being drafted into the NFL by the New England Patriots. The machine cannot be tackled because of its size compared to the human players, therefore leading to many touchdown catches as a wide receiver. In a more recent commercial, Machine now plays for the New Orleans Saints, competing with running back Reggie Bush. Other commercials have featured Diet Pepsi (the can) as an entertainer represented by "agent" Jay Mohr, appearing in a music video produced by Diddy ("Brown and Bubbly") and in an action film featuring Jackie Chan (in which a rival Diet Coke can serves as an oft-abused "stunt double"). Diet Pepsi (the can) has also been portrayed as a great poker player, winning hand after hand against champions Daniel Negreanu, Phil Hellmuth, and Scotty Nguyen. In an instance of product placement, a futuristic Diet Pepsi bottle can be seen in the background of "Cafe '80s" in Back to the Future Part II.

Health concerns

Pepsi Light bottle from Germany

As a carbonated beverage, Diet Pepsi shares many of the same health effects as other carbonated soft drinks. Diet Pepsi contains potassium benzoate, but does not contain ascorbic acid or erythorbic acid like many carbonated beverages. As the combination of potassium benzoate to ascorbic acid is linked to the formation of benzene in soft drinks, this greatly reduces that possibility in Diet Pepsi.

PERT-A Mapping the consumption chain

Customer total experience with product and service. It is used to help us how we can capture market share for our brand. It is way through which we can look at our current problem and come up break through thinking.

Map the consumption chain:

Pepsi is the first company which uses plastic bottles which are lighter in weight and are easy to transport and carry which is a new innovative strength for Pepsi. Pepsi innovation of light weight easily cariable plastic bottle played an important role in differentiation. It took their brand in different and unique way. Also pepsi tried to capture those location where the competitors were not offering their products like in rural area where demand is not too much. Pepsi use an effective delivery of its product which lead to maximum satisfaction to retailers and customers. Also for storage of its products it provide different storage devices to the retailers like fridges, coolers and cold storage machines.

Pepsi also customers:

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The consumption chain is essentially about asking a number of probing questions at each stage. Rudyard Kiplings Six Honest Serving Men are these questions: What: What are the customer experience after drinking pepsi? What they think about their product? Where: Where they can find customers easily? Who: Who comes in mind of customers when they consume their product? Why: When: Customer decision why they chose their product? generally in

When they can create high demand for their product, summer season (they find the best time)?

How: How they can help the customers to make purchase of their goods? How they can make products easily available to the customers?

The process of mapping the consumption chain considers the above questions. Each of these activities creates cost for customers and need to be considered when customers make a purchase decision. Customer acquisition and life cycle costs must be deducted from the benefits delivered by the product or service to derive a measure of total delivered value.

SUPPLY CHAIN FLOW MODEL

SUPPLY CHAIN FLOW

LOCATION OF PEPSI COBO(company owned bottle operation)&FOBO(franchise owned bottle operation) IN INDIA

JFS

SUPPLY CHAIN 1.CUSTOMER AND SUPPLY CHAIN UNCERTAINITY

IDENTIFYING CUSTOMERS NEEDS. DEMAND UNCERTAINITY AND IMPLIED DEMAND UNCERTAINITY. UNCERTAINITY FOR THE CAPABILITYY OF THE SUPPLY CHAIN. 2. UNDERSTANDING THE SUPPLY CHAIN CAPABILITIES,ACHIEVING THE STRATEGIC FIT.

JGF

SG

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PART-B ANALYSIS OF THE CUSTOMER EXPERIENCE

Pepsi is one of the largest leaders for beverages and always try to find new customers in every country. It also tries to hold its old customers and find/generate new ones. It emphasizes on customers interests and satisfaction.

Pepsi provides cost effectiveness and quality products to its customers. Pepsi tries to fulfil their individual customer order, in their best possible manner and do the delivery as earlier they can. Its distribution channels are also very efficient, as it connects its product to the customers through many ways like various kinds of innovative ads as in youth oriented, creative promotional activities and 24*7 online customer service for retailers.

Pepsi is always been good and positive because product is always available for them in an easy way and on time.

PRODUCT AND SERVICE INNOVATION

Created networks in small towns, areas with the different whole sellers, retailers for their products and services. Pepsi innovated such as Pepsi Twist, Pepsi Blue and Diet Pepsi, which contains low calories for people who are health conscious. Pepsi also innovated a new product Mountain Dew as an energy drink. It has done innovation in snacks like Kurkure with various different flavours and Lemon drink Nimboos which has helped Pepsi to create differentiation of their product from their competitors products. Pepsi has always took the help of information technology to find their prospective customers, used digital and social media influencers.

Product packaging:-

The vast majority of Pepsi's plastic bottles are made from PET (polyethylene terephthalate). A few of our products are packaged in a plastic called High Density Polyethylene (HDPE), which is a multi-layered material. Please be assured that all of these plastics do not contain BPA and are perfectly safe for consumption. Providing our consumers with easy-to-use, convenient and innovative containers is one of our top priorities. Package introductions we've made over the years include the industry's first two-litre bottle; the first company to respond to consumer preference with lightweight, recyclable, plastic bottles; The Cube, an easy-to-store 24-pack; Big Slam, the wide-mouth one-litre bottle; as well as our three-litre bottle, designed to provide consumers with extra value (not all products and packaging is available in all markets). Our local bottlers, many of which are privately owned, franchise operations, make all packaging decisions. Most of our bottlers are following the industry-wide trend to use plastic packaging due to environmental considerations. The industry is now making greater use of fully recyclable aluminium cans and PET plastic bottles. More information on the Pepsi-Cola environmental commitment, including its packaging initiatives, can be found in our Community Information section under Environmental Support and Recycling. The "CUBE" is a new innovative 24-can Pepsi multipack. It was dubbed the "CUBE" by consumer focus groups, which are a small test market population that's invited by Pepsi-Cola to give the company feedback

before the introduction of a new package or product. The consumer focus groups Pepsi used for this product coined the name the "CUBE" and it stuck! Polyethylene terephthalate, or "PET plastic," is a form of polyester used to make strong, lightweight, shatter-resistant bottles for soft drinks, water, juice and other non-food products. Bottles made from PET plastic, which are marked with the number one code on the or near the bottom of the bottle, are recyclable into products including new containers, Fiberfil for sleeping bags and coats, fabric, carpet, auto parts, film and more.

Evaluation OF PRODUCT PACKAGING

Packaged in a scaled plastic bottle so that it is easy to carry anywhere by consumers and even for the distributors. It uses different types of product packaging for different products in manufacturing like plastic bottles for Pepsi, Dews, Nim boos and cartons for Tropicana. It uses different logos for different flavours. Pepsi packed its products in a stylish aluminium can with a full ring tab which is easy to carry and drink. Plastic labels are attached to bottles which carries all the necessary information and details of the product, about its ingredients and also its expiry date, manufacture date for safe use.

Change in product packaging

In the consumer package goods world packaging is everything. Your product lives and dies on the shelf based on the packaging. Where Cokes brand is built on nostalgia, Pepsi is the choice of a new generation. The packaging is forward looking and at times futuristic. The problem with designing the future is that it gets old quick. Right now (thanks in large part to Apple) modern design is clean and simple. Walking into a store and seeing a wall of blue or white with just the Pepsi logo is very clean and in a cluttered store is striking, especially in the beverage isle. I think we are going to see a lot more Pepsi type redesigns in the future

1.2 billion dollars on a redesign you would expect something astounding. By itself the new logo looks like a knockoff of the old Pepsi logo, with a little bit of the Obaba logo thrown in. Having different shapes for different brands only adds to the confusion. After all, a logos first job is to be recognized by consumers not to make them think about the its gravitational pull in relation to the rest of the universe.

Conclusion
STARTING WITH THE RESEARCH ON THE PRODUCT PEPSI WHICH IS ONE OF THE RENOWNED PRODUCT OF THE COMPANY PEPSICO. IT HAS BEEN FOUND THAT FROM THE STARTING POINT OF ITS ORIGIN PEPSI HAVE GONE THROUGH MANY CHANGES IN PRODUCT AS WELL AS IN SERVICES TO DISTRIBUTORS AND CONSUMERS TO MEET THE CHANGING SCENARIO OF THE MARKET.PEPSI WITH DIVERSIFICATION IN THE PACKAGING AND DISTRIBUTION OF THE PRODUCT HAVE MADE IT POSSIBLE TO STAND OUT A POINT OF DIFFERENTIATION IN MARKET AS WELL AS IN CONSUMERS MIND.IT MEANS PEPSI HAVE ENROSED THE THIRST IN THE CONSUMER BY PROVIDING A COOL DRINK IN TASTE AS WELL AS IN SHOW CASE.