CONTENTS

Chapter No.
Chapter No-1

Chapter No-2

Title

Page No

INTRODUCTION

1.1 Introduction

1.2 Need for the Study

1.3 Objective of the Study

1.4 Methodology

1.5 Limitations

11

PEPSI COMPANY OVERVIEW

12
13

2.1 Genesis and Growth

23

2.2 Organization Structure

25

2.3 Production Function

38

2.4 HR Function

41

2.5 Finance Function

44

2.6 Marketing Function

48

2.7 Future Function

49
Chapter No-3

DATA ANALYSIS AND INTERPRETATION

3.1 Introduction

50
51

3.2 Details of the survey conducted

71
Chapter No-4

SUMMARY AND SUGGESTIONS

72

4.1 Summary

75

4.2 Findings

77

4.3 Suggestions

79

4.4 Conclusion

81
85

APPENDIX
BIBLIOGRAPHY

1.1 INTRODUCTION
2

Today many new companies are coming in to existence and because of this
the competition is also growing rapidly. Because of this reason they have to compete
with their competitors constantly. In some industries the new companies may not
come in to existence but the competition between the existing companies is growing
more and more. The soft drink industry is mainly suffering with this particular problem.
The Companies have to continuously compete with their competitors to get good
market share and good profits. To face their competitors they have to know their
position and the competitors position in the market. For this, the Companys will
compare itself with their competitor that means they will do the comparative analysis
in all aspects.
Item by Item comparison of two or more comparable alternatives,
processes, products, qualifications, set of data and systems etc. in accounting for, for
example changes in a financial statements items over several accounting period may
be presented together to detect the emerging trends in the firms operations and
results.
----- Business Dectionary.com
From this we can understand that Comparative analysis means the
comparison between the similar things (products, place, technologies, living beings
and etc.) regarding the features, nature, functions, behavior, SWOT, and many other
characters is called Comparative analysis. In this comparative analysis the researcher
will take any two or more similar products (that means the functioning of the products
are almost same) and compare the common and the similar features of the products to
find out that which product is the best one.
In comparative analysis the Company will compare itself with the
company which is in the top position in that industry or which is top in the position in
that particular area or region; from this they can understand their position in that
industry. It will be very useful know what is the strength and weakness of the
Company and the company will try rectify the problems in order to increase their
performance to reach and to beat out that other Company with whom they are
comparing their Company.
In the present scenario in the soft drink industry, the two gaint companies
are fighting with each other. They are adopting and changing the strategies frequently.

They are changing their schemes and offers according to their competitors. They have
to analyse their competitors strategies and techniques comparing with their companys
strategies and techniques. The study on comparative Analysis of Pepsi and Coke is
very useful to Pepsi Company. The comparison is done on all aspects of the Company.
From this analysis the company can know their position in the soft drinks market.
Through this Analysis Pepsi Company can know the merits and demerits of the
Company comparing with Coke Company.
There are two famous beverage companies, Coke and Pepsi, have been
competing dramatically and distributed the beverage market profit for several decades.
In the free market, it is hard to exactly tell which one is the winner within the perfect
competition, because both companies using the different styles of commercials and
products to expand their markets. Personally I believe that Pepsi earned higher profit
than Coke because Pepsi has better marketing strategies and the representative for its
commercials and T.V Ads cost is lowers. I choose Pepsi over Coke because Pepsi has
fair marketing strategy that attracts all generation of people of all ages, whereas Coke
targets mostly younger generation and tries to make an image of Pepsi as a UN cool
drink, and Pepsi has made more People made more people to appreciate its value and
product than Coke.
Therefore, we should drink Pepsi that knows how to appreciate all
audiences of all ages, regardless of their ages and genders. It is interesting to here
that Pepsi won the Taste test over Coke in the world wide. This is the good sign for the
company to get good market share. More people voted for Pepsis taste than Cokes
taste. Coke Company blames that all these taste tests meaningless and not the proper
ones to decide the taste and the greatness of the soft drinks. The production cost of
Pepsi Company is less than Coke because Pepsi Company is using the Franchisees for
the production purpose and giving the remuneration for the production and
maintaining the quality of the products by the regular checkups. In case of Coke it has
its own production units and producing the products in their own plants, this increases
the production cost of the drinks of Coke, because of this reason the profits of Coke
reduced when compared to Pepsi.
When we compare the commercial Ads of the two companies, Pepsi and
Coke there is a major thing that we can pick up from them, which is the representative
of their products. In other words who are the representatives in both commercial Ads?

The companies try to establish an image to the public is that their brands are closely
related to our environment and culture in which we are living. This is the main secret
of the Ads of the Soft Drinks. Sometimes they directly hit the egos of the customers
and to satisfy their ego they will show the solution, that is the product of the company.
This should be taken care by the Advertising department. For this reason they will use
different locations of the country and different cultures of the country and different
religions of the country in their Advertisements. They mean to say is we are close to
your lives. This comparative analysis is totally done on the retailers opinion that
means this comparative analysis is also helpful to know the belief and faith of the
retailers on Pepsi Company. The total data for the study was collected based on the
comparison between the two Companies, Pepsi and Coke. From this Pepsi Company
can get the positive and negative points of their Company comparatively with Coke
Company. During this study some retailers gave some suggestions to improve the
quality of the service (supply) and the image of the Company in the market and some
people gave some complaints on the dealers of the company that they are not
providing the sufficient information about the offers, service and the other things
regarding the company. The company can use these suggestions for its improvement
and by considering the complaints they can rectify the problems that they are facing
from the company or the company dealers.
The Company can not go for the survey on every area to know the
position of their products, hence through this comparative analysis the Company can
get the information about the position of the Company in that area along with the
position of the rival Company in that particular area. In this study the comparison was
done in the case of Advertising of the Companys, the manner they are attracting the
customers, the differences in the production functions and etc. were done. From all
these comparisons Pepsi Company can know the differences between the Pepsi
Company and its competitor Coke Company. Without comparing one Company with
another company which is in the same industry they can not know their position in
that particular industry. The Company can know that how many retailers are selling
their products individually and how many retailers are selling the Pepsi products along
with other products in their retail stores. The Company is providing the Visi Coolers to
the retailers to store the Pepsi Company products. Through this study the Company
got the information that how much percentage of the retailers are using the Pepsi

Coolers and how much percentage of the retailers are using Coke Companys Coolers
and their own Coolers. From this information the Company can take the decision to
increase the usage of the Pepsi Visi Coolers at the retail stores.
In this manner the study on Comparative analysis of Pepsi and Coke is
Very much important and helpful to the Company. Because of this reason only the
investigator did his project work on this particular topic with reference to Pearl Bottling
Company Pvt. Ltd., Visakhapatnam.

1.2 NEED FOR THE STUDY

6

In the present scenario the competitions between the soft drinks

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

1.3 OBJECTIVES OF THE STUDY

1. To study the overview of Pepsi Company (Pearl Bottling Pvt. Ltd.).

2. To know and compare the merchandising of Pepsi and Coke in retail

outlets.
3. To identify the retailers opinion towards Pepsi products when compared to
coke products.
4. To offer

some

finding

and

suggestions

to

the

company

for

improvement of its performance.

1.4 METHODOLOGY
Data which is required for this study is based on both primary and secondary data.

the

Primary Data:
Primary data is collected from the retailers through a structured questionnaire.
It includes the first hand information from the outlets. It can view as a survey. The
questionnaire was especially designed to find out the market share of Pepsi and Coke
Companies comparatively in these clusters. Through this information we can get the
strengths and weaknesses of Pepsi and Coke Companies in those particular clusters.
The total primary data was collected from the following clusters.
Srikakulam
Narasannapeta
Amadalavalasa
Investigator started the survey first at Srikakulam on 4/02/09 and completed on
24/02/09 with Amadalavalasa. Investigator personally went to every outlet and asked
the total details, which are in the questionnaire and filled those questionnaires. Some
of the retailers denied giving the details, then the investigator waited there with
patience and collected all the data from that retailers. In the survey the investigator
learned a lot and collected the useful information and also got good experience in the
market field and came to know many things which are not in our books through this
survey. The investigator almost covered all the retail outlets which are situated in
these three clusters and collected the correct information.

Secondary Data:
Secondary sources include the information collected from the annual reports,
published and unpublished records of the company .various books and journals were
referred. Internet was also being used for collecting the relevant data which is not
available in the books. Some of the websites are:
WWW.pepsiindia.co.in
WWW.pepsico.com
WWW.indiainfoline.com
WWW.scribd.com
WWW.oppappers.com

After gathering the data from those two sources the data was analyzed and the
important information was extracted for the use of study.

Data Analyzing Tools:

After gathering the data from the Primary and secondary sources the data were
tabulated using a structured format, was analysed using some calculations to sum up
the total information. The resultant data has been used in tabular format to prepare
the graphical representations. After the graphical representation the interpretation was
done to each and every graph using the Microsoft word and Microsoft Excel.
Interpretation is the total essence of the total study. The conclusions were made using
the interpretations.

1.6 LIMITATIONS OF THE STUDY

10

The study has the following limitations:

1. Time allocated for the study is one month which is not sufficient for in-depth
study.
2. Unavailability of some information due to the lack of awareness of retailers in
these clusters.
3. Bias in the information provided by the retailers.

11

2.1GENESIS AND GROWTH

12

PepsiCo is a world leader in convenient foods and beverages, with the

revenue of $307.2 millions by 2004 and $367.1 millions by 2009 with 163,000
employees.
The company consists of Frito-Lay North America, PepsiCo Beverages North
America, PepsiCo International and Quaker Foods North America.

"Pepsi cola" was

started in 1898 by Caleb Bradham. This was the second company introduced in soft
drinks field. The pioneered company was Coca-Cola which was started in 1886 in
Atlanta by Dr. John S. PepsiCo is 44 years old company. It was formed by the merge of
Pepsi Cola and Frito-Lay in 1965. Tropicana was acquire in 1998, and PepsiCo company
merged with the Quaker Oats Company Pepsi entered India in 1956 and left in 1961
because the products were not acceptable in Indian in those days. Pepsi re-entered
India in 1990 and with in 7 years it captured good market share in India.
Now PepsiCo brands are available in more than 200 countries in the world. The
worlds headquarters of PepsiCo is situated in New York, USA. It occupies 144 acres in
the city. The headquarters of India is situated in Mumbai. Indra Nooyi took the charges
as CEO of PepsiCo in Oct 1, 1996 and she got the Outstanding American by Choice
Award. She is leading the organization very successfully and she was named in the top
and powerful women in the world. Now the market share of PepsiCo in India is 53%
and the remaining was caught by its tough competitor Coca-Cola. These companies
are the major competitors to each other. Today the consumption of soft drinks is more
than water in America. More than 5,560 million liters of carbonated soft drinks are
consumed every year in USA, this refers that the consumption of soft drinks is more
than water in America.
In 1969, Pepsi Company introduced the modern red & white modern packing
technology to make the packs attractive. In the same year Frito-Lay introduced
fungus brand onion flavoured snacks in to the market.
In 1970, Pepsi introduced the industrys first two liter bottles. Pepsi is the first
company to respond to consumer preference with light weight, recyclable plastic
bottles used for drinks.

13

 In 1971, Andral E.Pearson is appointed as the president of PepsiCo and he was

in that position up to his retirement 1984.
In 1972, Don Kendrall announces agreement making that PepsiCo was the first
foreign product sold in U.S.S.R. is given the exclusive rights to improve the sales
of Stolichnaya Russian Vodka in U.S.
In 1973 & 74, PepsiCo became the first American product to be produced and
sold in former Soviet Union.
In 1975, Pepsi lite, with destructive lemon taste is introduced as an alternative
to traditional diet kolas.
In 1776, PepsiCo adopts the worldwide business code of conduct. PepsiCo
became the single largest selling soft drink brand sold in U.S super markets.
In 1979, PepsiCo started its reach and technology center in Vallah,

New York,

USA. This increased sales of the company. In this year they introduced 12 packs
cans.
In 1980 & 81, in these years PepsiCo food service international was formed to
focus on overseas development of restaurants, and fitness centers for the health
development of the employees of the company.
In 1982, PepsiCo introduced the caffeine free colas, first time in to the market.
In 1983, the bottler hall of fame is established to recognize the achievement
and dedication of international bottlers.
In 1984, Diet Pepsi was reformulated with 100%natural sweet, slice and diet
slice are also introduced in to the market. The space cans were introduced in
to the market successfully.
In 1986, the largest North American transportation company North America
Van Lines (NAVL) was merged with Pepsi to improve the distribution channels of
the company. The second plant was started in China.

14

 In 1987, the new headquarters of PepsiCo was moved to New York, USA.
In 1988, PepsiCo is recognized along graphical lines East, West, South and
central regions, each with its own president and senior management staff.
In 1989, Pepsi Company introduced share power stock option program for all
employees becoming the first large corporation tool award stock options through
virtually all full time employees.
In 1990, Pepsi Company was named as one of the most admired corporations by
the fortune magazines top 10 for the two successive years. Pepsi reentered in
India with the collaboration with Punjab Agro Industries Corporation (PAIC).
In 1991, Pepsi Company was named as one of the most admired corporations by
the fortune magazines top 10 for the third year also.
In 1993, PepsiCo started its distribution of Liptons line of ready to dink tea
national wide. PepsiCo introduced Pepsi max, a soft drink with unique blend of
sweeteners that delivers maximum cola taste in a no sugar product.
In 1994, Pepsi introduced Aquafina bottled water into test market and got great
success.
In 1995, Pepsi Company introduced 7up ice cola in to its product line. In the
same year Lays brand potato chips were launched in 20 markets of the world.
In 1996, Pepsi Company started its website WWW.pepsi.com and it started its
operations throughout the world.
In 1997, Pepsi Company announced plans to spin off its restaurants business as
an independent publicly traded company and sold its food distribution company
to focus on its core beverages and snack food business.
In 1998, Pepsi Cola celebrates 100 th anniversary with first world wide Bottlers
conference held in Hawaii, the event is held during the same time as first
Bottlers conference. Pepsi Company introduced 2lit bottles in to the market.

15

 In 1999, Aquafina became official beverage sponsor of all American Soccor Stars
victory tour. Sprite was introduced in to the market and got success.
In 2000, Pepsi Company launched new beverages line of fruit drinks like Apple,
strawberry, peach papaya, pink lemonade, and strawberry melon grime citrus.
In 2001, Pepsi Company announced a new joint venture in Egypt combining the
salt snack operations of chip, the current market leader and tasty foods, which
is owned by Pepsi Company.

MILESTONES OF PEPSI
2000-2008 Milestones:
2000 Milestones:
Pepsi- Cola revives its Pepsi Challenge advertising campaign. Challenge
includes Pepsi One and Diet Coke as well as well as regular cola.

Pepsi Cola team up with yahoo Inc., the biggest web navigation company, in a
multimedia marketing campaign aimed at teens and young adults.

Tropicana, in a joint venture with Galaxy Foods Co., introduced an icy smoothie
soy milk-and-fruit drink, made with juice, fruit puree along with soymilk and soy
protein.
Aquafina brand bottled water became the best-selling brand of single-serve
bottled water in US retail channels.

16

 Pepsistuff.com, a website for merchandise, discounts and digital music files form
biggest names in movies, music, video games. Apparel and sports is launched in
joint promotional with Yahoo.

2001 Milestones:
Pepsi-Cola Company launched Dole single-serve juices in vending machines,
coolers and other retail outlets throughout the United States.
Pepsi-Colas flagship brand had the new tagline, The joy Of Pepsi.

Tropicana celebrated a company milestone of 300 billion fresh an orange

squeezed since the company began making countrys first ever mass distributed,
not-from-concentrate juice in1947.

Pepsi-Cola launches the bold new Mountain Dew Code Red nationwide in United
Sates.
Tropicana introduced smoothies. A natural juice-based product, smoothies
combine fruit juices and non-fat yogurt into a smooth, filling drink that delivers
nutrition, taste and convenience.
Frito-Lay introduces Lay's Bistro Gourmet potato chips.
Pepsi-Cola Company introduces a "Pepsi Twist." Regular and diet versions of the
crisp new cola with lemon are entering retail outlets in selected U.S. markets.
SLAM, the orange brand Mirinda, is launched in Italy.
On August 2, PepsiCo merges with The Quaker Oats Company, creating a $25
billion food and Beverage Company focused on the rapidly growing consumer
demand for convenience.

2002 Milestones:
Aquafina debuts new line of great-tasting enhanced waters. Aquafina Essentials
target active, health-conscious adults in four lightly sweetened varieties
including B-Power, Calcium+, Daily C and Multi-V in 20-oz. bottles.

17

 Gatorade introduced new Gatorade ICE in three flavors- Orange, Lime and
Strawberry.
Tropicana Pure Premium announced sponsorship of Disney's award-winning
show The Lion King.
Tropicana Pure Premium introduces 14-oz. single-serve resalable bottle you
can take with you for the on-the-go- consumers. Diet Pepsi has a new look.
"Mr. Green," a green-tinted carbonated soft drink with caffeine and ginseng, is
launched under SoBe's New Age beverage line in April.
Aquafina debuts new line of great-tasting enhanced waters. Aquafina Essentials
target active, health-conscious adults in four lightly sweetened varieties
including B-Power, Calcium+, Daily C and Multi-V in 20-oz. bottles. PepsiCo
published Health and Wellness Philosophy.
Frito-Lay announces plans to introduce Lay's Reduced Fat chips and Cheetos
Reduced Fat snacks. Brand Pepsi has a new look.
Tropicana introduces a new campaign with the tag line "So pure. So alive.
Tropicana Pure Premium."
PepsiCo introduced Marathon Kids, a program that encourages kids and their
families to be more physically active and it got huge success throughout the
world.

2003 Milestones:
Pepsi-Cola launches Sierra Mist nationally.
PepsiCo launches "Get Active/Stay Active" program.
Quaker Chewy introduces Quaker Chewy Wholesome Favorites and Quaker
Chewy Trail Mix.
Gatorade unveils In-Car Hydration System for NASCAR Drivers.
SoBe sponsors U.S. Open Snowboarding Championships.
Pepsi announces plans to launch Mt. Dew Livewire, an orange drink, this
summer.

18

 Pepsi-Cola signs an exclusive four-year sponsorship deal with the Canadian

Hockey Association, making Pepsi the official soft drink.
Pepsi announces four-year sponsorship agreement with the UK Football
Association.
Frito-Lay announces new line of snacks made with organic ingredients called
"Natural Snacks."
PepsiCo

creates

PepsiCo

International,

the

business

that

will

unite

all

international snack, beverage and food units in an effort to drive faster growth
and improved profitability around the world.
PepsiCola trademark turned 100 years old.
Pepsi Vanilla is launched in the United States.
Tropicana introduced Tropicana 100% Juice Blends.

2004 Milestones:
PepsiCo Launches 'Health Roads' Wellness Benefit for Associates and Their
Families
PepsiCo's new "Smart Spot" program is featured as an example of the food
industry's focus on health and wellness in today's edition of USA Today.
Frito-Lay Launches Doritos and Cheetos Halloween Treat Multi-Sacks.
Frito-Lay's 24-count Multi-Sack variety pack won the Institute of Packaging
Professional's (IOPP) Integrity Award, one of the industry's top awards, at this
year's AmeriStar Packaging Awards.
Frito-Lay Introduces Doritos Black Pepper Jack
Diet Sierra Mist Become Sierra Mist Free
Pepsi-Cola to launch Pepsi Edge, the first full-flavored cola with 50% less sugar,
carbohydrates and calories than regular cola.
Pepsi Bottling Group (PBG) PepsiCo's biggest bottler bought Phil Gaudreault ET
Fils Ltee, a Quebec-based Pepsi bottle.

2005 Milestones:
PepsiCo Celebrates 40th Anniversary.

19

 PepsiCo launched Quaker Milk Chillers.

Tropicana Launched All Fruit Smoothies.
Frito-Lay Launches Quaker Oats in India
Pepsi Foods Introduced Weight Control Instant Oatmeal
Pepsi Lime and Diet Pepsi Lime Launch
Tropicana Twister Soda Launched in April
PepsiCo international and Lipton came into agreement and introduced new
Lipton Original Iced Tea and New Lipton Iced Tea.
Tropicana Fruit Wise Campaign Launched.
PepsiCo Health & Wellness Launches Everyday Smart Moves Magazine.
Pepsi Celebrates 20th Consecutive Super Bowl With New Diet Pepsi Campaign.
In selected cities cross the United States, Pepsi distributes more than three
million free cans of newly reformulated Diet Mountain Dew, marking the largest
single-day sampling effort in company history.
Frito-Lay announces the launch of a new line of snack chips called Lay's
Sensations and Tostitos Sensations.

Frito-Lay launches Tostitos Multigrain; new snack brings flavor of four wholesome grains to
one of America's favorite tortilla chips.
2006 Milestones:

Quaker Snacks Unveils Breakfast Cookies

Doritos unveils new packaging, including an updated logo

PepsiCo Launches Pepsi Limon in Peru

PepsiCo Completes Acquisition of Stacy's Pita Chip Company

PepsiCo Foodservice Partners With Cracker Barrel to Serve Up Fritos-Branded

Menu Item

PepsiCo Foodservice Pours Two New Account Wins: Famous Dave's of America
and Roundtable Pizza

Pepsi Celebrates 20th Consecutive Super Bowl With New Diet Pepsi Campaign

North

American

Coffee

Partnership

Launches New Starbucks

Beverages,

Starbucks Iced Coffee, Starbucks Iced Coffee Light as well as Strawberries and
Creme Frappuccino and Starbucks Double shot Light

20

PepsiCo India re-launches Mirinda

SoBe Launches New SoBe Life Water

Cheetos kicks off the biggest marketing campaign in its history with "Undercover
Chester," an integrated communications platform that asks consumers to help
Chester Cheetah recover the stolen recipe for Cheetos

In selected cities cross the United States, Pepsi distributes more than three
million free cans of newly reformulated Diet Mountain Dew, marking the largest
single-day sampling effort in company history.

Frito-Lay announces the launch of a new line of snack chips called Lay's
Sensations and Tostitos Sensations

Frito-Lay launches Tostitos Multigrain; new snack brings flavor of four

wholesome grains to one of America's favorite tortilla chips.

Lay's Introduces Hot 'n Spicy KC Masterpiece BBQ Potato Chips.

Frito-Lay cuts saturated fat in Lay's more than 50% for the health of the
consumers.

Diet Pepsi launches Jazz, a new line of zero-calorie colas available in rich flavors
like Black Cherry French Vanilla and Strawberries & Cream.

Tropicana debuts Tropicana Pure--a new line of 100% premium juices

Indra Nooyi named Chief Executive Officer of PepsiCo as of October 1, 2006

Frito-Lay kicks of its nationwide rollout of Lay's with 100% Pure Sunflower Oil

PepsiCo announces it will acquire New Zealand snack company Bluebird Foods

2007 Milestones

PepsiCo signs Maria Sharapova for International endorsement of Gatorade and

Tropicana.

PepsiCo announces new Diversity & Inclusion Leadership Award inspired by

Steve Reinemund.

21

Aquafina launches Aquafina Alivea low calorie, vitamin-enhanced water

beverage. Fritos Corn Chips celebrates 75th Anniversary with retro packaging.

Tropicana launches Tropicana Fruit Squeeze, a 20-calorie drink with real

Tropicana fruit juice.

Lay's launches 'Share the Joy' program to help the Make a Wish Foundation
raise funds.

PepsiCo Announces 25% Dividend Increase and Raises Share Repurchase

Target; Nooyi Assumes Chairman Title.

EPA Names PepsiCo 2007 ENERGY STAR(R) Partner of the Year.

PepsiCo Makes Largest Corporate Purchase of Renewable Energy Certificates.

Pepsi launches "Design Our Pepsi Can" National Promotion.

Indra Nooyi receives the Outstanding American by Choice Award.

PepsiCo makes Fortune magazine's '100 Best MBA Employers' list.

Indra Nooyi named as 2007 Working Mother 'Best Company for Multicultural
Women'.

PepsiCo wins two awards Best Environmental/Wildlife Campaign and Best

Cause Marketing Event -- at Fifth Annual Cause Marketing Halo Awards.

Pepsi wins Webby Award for its execution of the "Best Sports Website"

PepsiCo earns spot in Black Enterprise Magazine's '40 Best Companies for Diversity'.

2008 Milestones

PepsiCo Foundation announces two major new grants to Water Partners and
Safe Water Network programs to provide access to safe water and sanitation in
developing countries.

22

Forbes Names PepsiCo among Its Best Big Companies.

PepsiCo India Commissions First Remote Wind Turbine to Generate Renewable,

Clean Energy.

Employees Lead Effort to Make Chicago Plaza First LEED-Certified PepsiCo

Headquarters.

PepsiCo Honored with 2008 Energy Star Partner of the Year Award.

PepsiCo Foodservice and Naked Juice Expand Starbucks Presence.

PepsiCo International's China Foods Wins "China's Top Leaders 2008" Award.

Wall Street Journal Article Recognizes PepsiCo for Leadership in Employment of

People with Different Abilities.

PepsiCo and Frito-Lay Join SmartWay in Commitment to Reduce Greenhouse

Gas Emissions.

PepsiCo Beats Coke in Race to Launch New Natural Sweetener (Stevia).

PepsiCo Commits to Reducing Acryalmide Levels in Potato Chip Products and

Restructured Potato Snacks in California.

Subway Names PepsiCo "Vendor of the Year" for Sustainability Leadership.

2.2 ORGANISATION STRUCTURE

Managing
ManagingDirector
Director
23
Finance
Sales
&
&
Marketing
Accounts
Factory
Finance
Sales
&&
Marketing
Accounts
FactoryManager
Manager
Area
Fountain
Sales
Manager
Pepsi
Bottles
Soft
Drink
Manager
Department
Accounts
Area
Fountain
Sales
Manager
Pepsi
Bottles
Soft Drink
Fountain
Manager
Sales
Accountant
Manager
Sales
Accountant
Executives
Director
of
Executives
102
Distributors
Shipping
Manager
Department
Accounts
Fountain Manager
Sales
Accountant
Manager
Sales
Accountant
Executives
Director of Executives
102 Distributors
Shipping

Production
Production
Administration
Production
Productionofof
Production
Administration
Department
Manager
Production
Production
Chemists
Control
Quality
Recruitment
Department
Manager
Engineer
Production
Chemists
Control
Quality
Recruitment

There are five elements that comprise an organization structure:

Specialization of activities
Standardization of activities

24

 Co-ordination of activities
Centralization and decentralization of activities
Size of the work unit.
The word organization has two common meanings. The first meaning signifies
institution or functional group, and the second one refers to the process of organizing
the way of work, which is arranged and allocated among members of the organization,
so that the goal of the organization can be achieved efficiently. The organizing process
involves balancing the companys need: both for stability o one hand and change on
the other hand. The organization structure gives stability and reliability of its goals.
While altering an organization structure can be a means of adopting and bringing in
about a change, which could otherwise be a source of resistance to change.
Organization structure basically involves analysis of activities to be performed
for achieving organizational objectives grouping them in to various individuals and
delegating them with appropriate authority so that they can carry on their work
properly. Organization structure can be defined as an arrangement and relationship of
component parts, which also helps to determine the position of the company. An
organization structure specifies the division of work activities and shows us how
different activities are linked.
Organization structure is a basic framework within which the managers
decision making behavior takes place. Structure basically deals with relationships. It is
an important scientific concept. In dimple terms it may be defined as a pattern in
which various parts or components are interrelated or interconnected. The MD, Mr.
Ruchirans Jaipuria is the head of the Organization and administration. The company is
managed by the Director and is assisted by a team of well-qualified $ experienced
senior management personnel.

2.3 MARKETING FUNCTION

25

The success of any enterprise directly depends upon the success of its
Marketing function. Is the main function in this business? It plays a major role. After
the production of the soft drinks, the functions of the Marketing Dept. starts and it
continue process. The word marketing is not a simple word; it is of many complicated
activities which should be undergone. The sales persons should have to search for the
opportunities and have to avail the opportunity. One Manager will be appointed to look
after the total marketing activities in that region and some team will be there under
the manager to execute the function. Marketing should be done on two concepts
related to the customers psychology, those are;
Fear of loss
Hope of gain
That means the marketer will create these feelings in the customers mind to
market their products. For example Pepsi launched a promotional activity that see the
crown of the bottle and win the gold coin; it creates these above mentioned feeling.
The customer will think that if I am not taking that drink I may loss that gold coin (or)
if I take that drink I can win that gold coin. These two sentences may be similar to
see, but there is a difference in these words. The customer may be attracted towards
the product because of any these two reasons.
The approaches may vary from product to product, time to time, and place to
place. The marketers have to create the need to the customer and have to show the
solution for that need. Marketing Management is the process of planning and executive
the conception, pricing and distribution of ideas, goods and services to create
exchanges with target that satisfy customer and organizational objectives. That means
marketing consists the distribution of soft drinks (distribution channels), promotional
activities, providing the information about the products, advertising of the products
and etc.
Pepsi Company is giving the huge publicity about their products introduced in
the market and the products yet to come in to the market. They are using the big film
stars, cricket players, tennis players and etc. as their brand ambassador to attract the
people. It creates a psychological feeling that their favorite name and famed persons
are consuming the products then why should I consume the product. The soft drink
companies are spending lots of amount on the advertising. There is always the cold
war is going on. To face the competition they are adopting various methods. The soft

26

drink companies have to maintain good relations with the distributors, dealers and the
retailers, because they can make the profits and can break the profits to the company.
Because of this reason they will take care of these persons.
This business totally depends on the seasons; the sales of the drinks will be
in peak level in summer seasons. In the soft drinks industry without the marketing
function they can not run the business. In this industry the competition is more and
uncontrollable, because of this reason the Companies have to think of competing with
the competitors. The Company is appointing the executives to improve their
marketing. The Executives will go to the retailers and explain about the products and
the offers that are offered to the retailers and to improve the business what type of
support the Company will provide to the retailers. Some supervisors will be recruited
to supervise the marketing executives whether they are doing their duties perfectly or
not. To look after all the marketing departments functions on Marketing Manager was
recruited in the top level. In this way the marketing structure will made. Logistics also
include the marketing function. The distribution of the soft drinks looked after by the
marketing department only. They will supply the drinks to the retailers and collect the
money and the empty bottles from the retails. If the marketing department is
succeeded in all these functions then it is a successful marketing department. For this
the department will struggle continuously. Some researchers also will be there for the
marketing reach in the company because if the company is implementing the same
strategies for a long time and for all the areas that many not be suitable for that time
and area. For that the research department will do the continuous research for the new
strategies.

The Four P Components of Marketing Mix:

27

Marketing mix

Target Market

Product

price

place

promotion

Product Variety

List Price

Channels

Sales Promotion

Quality

Discount

Coverage

Advertising

Design

Allowances

Assortment

Sales Force

Size

Credit Terms

Location

Public Relation

Service

Inventory

Direct Marketing

Returns

Transport

The consistency of the product mix refers to how closely relate the various
product lines are in end use, Production requirements, distribution channels, or some

28

other way. Pepsi Companys product lines are consistent in so far so they are consumer
goods that go through the same distribution channels. The lines are less consistent so
far as they perform different functions for the buyers.
These four product-mix dimensions permit the company to expand its business
in four ways. It can add new product line and can add more product variants to each
product and deepen its product mix. Finally, it can pursue more product-line
consistency. The future of any product is totally depends on these aspects. They
should introduce the right product with a suitable price in a right place, at the same
way the promotions also should match the place. That means the advertisement
should be in right manner.

Product Mix Width & Product line length for Pepsi India Pvt. Ltd.
compared to Coke Company:
Product Mix Width
Soft drinks

Product Line
Length

Pepsi
Pepsi
7 Up
Orange Mirinda
Mountain Dew
Lemon Mirinda
Slice
Diet Pepsi
Evervess Soda

Coke
Coca-Cola
Sprite
Fanta
Thumps Up
Limca
Maaza
Diet Coke
Kinely Soda

Drinking water
Pepsi

Coke

Aquafina

Kinely

American Marketing Association defines a brand as: a name, term, symbol, or

design, or a combination of them, intended to identify the goods or service of one
seller or group of sellers and to differentiate them from those of competitors. Thus a
brand identifies the seller or maker. Under trademark law, the seller is granted
exclusive rights to the use the local brand name is perpetuity. Brands differ from other
Assets such as patents and copyrights, which have expiration dates.

Product:
The marketer has to do the survey to understand the needs and wants of the
customer and has to inform to the production department. Then the

R&D

department will do the research accordingly. The production department will produce
the product to fulfill the requirement of the customers. All these factors come under

29

this part of the product mix. Pepsi Company is producing many brands of soft drinks
and doing the marketing of those products. They are taking care of the quality of the
products.

Price:
The company will fix the price of a product based on some aspects, those are;
Production Cost, Variable Cost, and some other things and they will finally add their
desired profit to that cost and the final cost of that product will be fixed. This is called
the Maximum Retail Price (MRP). This step should be taken care because the price of
the product should be according to its quality, and also should be taken care of the
competitors price. If the price is too high when compared to the competitor and not
worth of its quality then the sales of that product becomes difficult and the company
will face the losses. The company should also have to think what will be the return on
investment.

Place:
The company should think a lot before launching a product in to the market.
They have to identify where it is better to launch the new product first so that they can
get success. Generally every company selects a specific region to launch their new
products, because first they will go for the test marketing before the mass production
of the production. If the customers are satisfied with that product then they will start
the mass production and launch in all areas. In case they found any fault with that
product then they will redesign the product and rectify that problem and re-launch the
products.
They will take care of the distribution channels also while launching the new
product in one area. They have to design what will be the channel structure and what
will be the results of that structure. Pepsi Company following this structure;
Producer ----- Dealer------ Retailer ------- Customer
Producer-------company dealer------Retailer------Customer
They will also estimate the distribution cost that is transportation cost and will
search for the remedies to reduce the cost of distribution. The company should also
think of the inventory, because they have to stock the goods for sometime and will
supply the product to the customers. For this they have to arrange the warehouses.

30

Promotion:
In todays competitive environment, having the right product at the right
place, at the right time may not be enough to be successful. Effective communication
with the target market is essential promotion is the p of the marketing mix designed
to inform the market place about who you are, how good your product is and where
you can buy it. Promotion is also useful to persuade the customers to try a new
product or buy more of an old product. The promotional mix is the combination of
personal selling, advertising, sales promotion and public relations that uses in its
marketing plan. Above the line promotions refers to mainstream media advertising
through common media such as television, radio, transport, billboards, newspapers
and magazines.
The company will offer many things to the traders as well as to the
consumers. If the company will give good schemes to the dealers and the retailers
then they will promote that brands and the sales will be increased. In the same way
the companies are also providing many offers to the consumers like:
Drink Pepsi, see the crown and win foreign trips, cash prize and many more
things.
Drink Pepsi and go to World Cup offer.
Drink Sprit and win NOKIA Multimedia Mobiles.
Drink 7up and win 7 Golden Lemons and many more gifts worth of 7 crores.
Buy Maaza 1 lt. bottle and get 200ml Pulpy Orange worth Rs. 15 free.

In the case of soft drinks the Advertisement is the main promotional activity. The
companies are investing millions of rupees on Ads. They are preparing various types of
Ads targeting different category of People. They are preparing the Ads very
innovatively in the way to attract the customers and against their competitor. Through
the Ads the company will create the feeling in the customers mind that this drink is
good and should go for that drink only. Many customers will go for same brands
because of the influence of the advertisements only. Some Ads will hurt the ego feeling
of the customers and through that way also they will attract the customers. In these
ways promotional activities plays a vital role in the sales increase of a product as well
as it will create a brand image in the customers mind.

31

Comparison of the Slogans of the two Major Brands:

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

Slogans of Coke Company

1903 Exhilarating, invigorating, Aids

1886 Drink Coca-Cola

Digestion.

1904 Delicious and Refreshing

1907 Original Pure Food Drink

1905 Good All the Way Down

1909 Delicious and Healthful

1906 The Drink of Quality

1915 For All Thirst-Pepsi-Cola

1906 The great National Temperance

1919 Pepsi-Cola-it makes you Scintillate

1907 Delicious Coca-Cola, Sustain,

1920 Drink Pepsi-Cola. It will satisfy you

Refreshes, Invigorates.

1928 Pepsi you Up!

1908 Sparkling-Harmless as Water and

1932 Sparkling, Delicious.

Crisp as Frost.

1934 Refreshing and Healthful

1909 Delicious, wholesome, Refreshing

1939 Twice As Much For A nickel Too

1910 It Satisfies

1943 Bigger Drinks, Better taste.

1911 Its time to Drink Coca-Cola

1949 Why taken less When Pepsi is best?

1912 Demand the Genuine-Refuse

1950 more Bounce to the Ounce

Substitutes.

1950 The light Refreshment

1913 The Best beverage Under the Sun

1954 Refreshing without Filling

1914 - Demand the Genuine by Full Name

1958 Be Sociable, have a Pepsi

1916 just One Glass Will Tell You

1961 Now Its Pepsi, for those who think

1917 Three Million A Day

Young.

1919 Quality Tells the Difference

1963 Come Alive! Youve in the Pepsi

1920 Drink Coca-Cola with Soda

32

Generation.

1922 Thirst knows no Season

1967 Pepsi Pours it on

1923 Refresh Yourself

1969 You got a lot to live and Pepsi got a

1924 Pause and Refresh Yourself

Lot to give.

1925 The Sociable Drink

1973 Join the Pepsi People, feeling free

1926 Stop at the Red Sign

1975 Have a Pepsi Day

1927 Around the Corner from Anywhere

1978 Catch the Pepsi Spirit

1928 A Pure Drink of National Flavours

1981 Pepsi Got your Taste for life.

1929 The Pause that Refreshes

1983 Pepsi now!

1930 Meet Me At the Soda Fountain

1984 Pepsi, the choice of a new

1932 Ice-Cold Sunshine

Generation.

1933 Dont Wear A Tired, Tired Face

1992 Pepsi, Have it!

1934 Carry a Small Back to Work

1993 Be Young, Have Fun, Drink Pepsi

1935 All Trails Lead to Ice-Cold

1995 Nothing else is a Pepsi

Coca-Cola

1999 The joy of Cola.

1936 What Refreshment Ought to be

1938 The Best Friend Thirst Ever had
1939 Make Travel more Pleasant
1940 Bring in Your Thirst and Go Away
Without it.
1941 Completely Refreshing
1942 Refreshment that Cant be
Duplicated.
1943 The only think like Coca-Cola is
Coca-Cola itself. Its the real thing.
1944 How About A Coke
1945 Passport to Refreshment
1947 Coke knows no season
1949 Coca-Cola. Along the highway to
Anywhere.
1951 Good food and Coca-Cola just
Naturally go together.
1954 For people on the go
1956 Feel the difference

33

1957 Sign of a Good Taste

1958 The cold, Crisp taste of Coke
1959 be really refreshed listen to Connie
Francis
1960 Relax with Coke
1961 Coke and food-Refreshing new feel.
1962 Coca-Cola Refreshes you best.
1965 Something more than a soft drink
1966 CokeAfter CokeAfter Coke
1970 its the real thing listen to the
Carpenters
1971 Id like to buy the world a Coke
1976 Coke Adds life
1979 Have a Coke and Smile
1984 Just for the taste of it (Diet Coke)
1985 Weve got a taste for you
(new Coke)
1986 Catch the Wave (New Coke)
1987 You cant beet the real thing
1989 Cant beat the feeling
1990 Cant beat the real thing
1993 Always Coca-Cola
2001 - Thanda Matalab Coca-Cola
2003 Coca-Coal Enjoy

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

34

much frequently because the present day customers are taking care of the features of
the product, taste of the products and packing of the products not the slogans of the
Company.

Comparison of the Logos of Pepsi and Coke:

35

From the above picture we can observe that from origin itself Pepsi Company
has been changing its Logos but Coke Company has not at all changed its Logo form

36

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

Pepsi

Coke

Pepsi

Coca-Cola
Thumps up

Coke Company has the two cola brands, whereas Pepsi has only one brand of
cola. Pepsi Company is using excellent marketing strategies, such as celebrity
appearances to sell their products where as Cokes realistic approach has placed them

37

at the top of the soft drink industry, mainly in the case of cola sales. We can observe
the cola war through the Advertising of the two companies in the television. They
prepare the Ads to compete with one another. They will hire the famous persons and
the celebrities for their Ads. They will invest lots of amount on advertising. Through
the advertising only the sales of the soft drinks are in creased. Even though Pepsi
trying to get the No-1 place in the soft drinks industry the statistics have shown that
they are not able to get that position when compared to Coke Company for the past
few years.
In case of Advertising Pepsi dominated Coke because most of the customers
are attracted toward the Pepsi Companys Ads only not to the Coke Companys Ads
because Pepsi is spending more on advertising preparation when compared to Coke
Company. Pepsi Company is using the famous celebrities when compared to Coke
Company and this increases the influence of the advertising on the customers. Both
companies are conducting their operations successfully in more than 200 countries in
the world. The war is going on in every country all over the world. Pepsi changed its
Logos frequently 9 times from its origin but Coke Company has not at all changed its
Logos, this is a great thing that we can observe.

2.4 HR FUNCTION
Worldwide code of conduct of PepsiCo.
38

Dear Fellow Associates:

PepsiCo has consistently led the industry without standing
financial performance and we can rightfully take pride in our
accomplishments. Like all winning teams, we are constantly asking
ourselves, How do the best get even better? The answer is to
deliver Performance with Purpose: our vision to take PepsiCos
foundation of strength and build on it to create a company that both
generates healthy financial returns and improves the lives of our
consumers, our employees and our communities. To do better by
doing better, we must start with our Values and our Code of
Conduct. This means delivering superior financial performance the
right way, achieving results with integrity, building trust with one
another and all of our stakeholders with our Values and our Code
at the center of everything we do. Our commitment to applying our
Values and the Code of Conduct to all aspects of our business is
critical to delivering world-class performance and doing so with a
larger purpose that makes a difference to the world we share. My
intent is that this Code of Conduct will help guide each of us as we
work toward living our Values and making Performance with
Purpose

reality.

These

indispensable

tools

serve

as

our

unshakeable foundation. Thank you for your support and your

personal engagement in ensuring that PepsiCo remains a highintegrity company that delivers consistently strong performance the
right way.

39

Indra Nooyi

[Chairman and Chief Executive Officer]

Respect for Our Employees:

We believe our most important strength is our employees. We seek to provide a
work environment where all employees have the opportunity to reach their full
potential and contribute to PepsiCo's success. We emphasize personal integrity and
believe long-term results are the best measure of an employees performance. PepsiCo
respects the human rights and the dignity of all employees. We endeavor to treat our
employees fairly and honestly. We strive to maintain a safe, secure and healthy
workplace and it is against our policy to use forced or child labor. We also strive to
follow all applicable employment laws and regulations. We are committed to equal
opportunity in all aspects of employment for employees and applicants. This means
providing a workplace free from any form of discrimination or harassment, including
sexual harassment. We seek to create a work environment where people feel
comfortable and respected, regardless of individual differences, talents or personal
characteristics. Our objective is for the diversity of our employees to reflect the
diversity of the population wherever we operate and for the performance of all
employees to be judged fairly and based on their contribution to our results. PepsiCo
encourages an inclusive culture, which enables all employees to do their best. This
means us:

Welcome and embrace the strengths of our differences,

Treat each other with respect and fairness, and

Foster an atmosphere of trust, open communications and candor.

We recognize the needs of individuals to achieve professional and personal

balance in their lives. We also respect employee privacy and will acquire and retain
only that employee personal information that is required for operation of the
Companys business or required by law.

40

Health and Safety:

PepsiCo is committed to providing safe and healthy work environments at its
facilities for all its employees, visitors, contractors and vendors. It is our policy to
provide employees with a drug-free workplace. In order to create an environment free
from threats, violence and intimidation, we are committed to a policy of zero tolerance
for violence. We are dedicated to designing, constructing, maintaining and operating
facilities that protect our people and physical resources. It is our policy to comply with
all applicable health and safety laws and regulations, provide and require the use of
adequate protective equipment and measures, and insist that all work be done in a
safe and responsible manner. It is the responsibility of each employee to follow all
Company policies and procedures related to workplace health and safety.

Responsibility for Compliance:

All employees are expected to display responsible and ethical behavior, to follow
consistently both the meaning and intent of this Code and to act with integrity on a
daily basis. Managers and leaders are expected to ensure that our business processes
and practices reinforce the Code, to serve as positive role models by establishing and
adhering to high ethical standards, and to create an ethical culture by encouraging and
rewarding actions that are consistent with the Code. This Code cannot provide
definitive answers to all questions. For that, we must rely on each person's judgment
and integrity. You are encouraged to seek guidance when a situation may not be clear.
Your supervisor, Human Resources manager or the PepsiCo Law Department will
respond to questions and issues of interpretation about this Code. Waivers of this Code
will be reviewed by the General Auditor and General Counsel, and in certain
circumstances by the Board of Directors, and if required, will be appropriately
disclosed.

2.5 FINANCE FUNCTION

41

Any company, which has to start and operate its business, has to invest its
capital in fixed assets and floating assets and it also has to meet the daily
requirements of the company. However, depending on the nature of the business and
the product being offered by the company, the ration of investment of capital in fixed
and floating assets differs.
Types of Capital

Amount (In Lakhs)

Funds employed

60

Working capital

15

Institution finance

40

Protection and Proper Use of Company Assets:

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

Accounts and Record-Keeping

We will continue to observe the most stringent standards in the keeping of our
financial records and accounts. Our books and records must reflect all components of
transactions, as well as our own standard of insisting upon an honest and forthright
presentation of the facts. We will ensure that the disclosures we make in reports and
documents that we submit to the Securities and Exchange Commission and in other
public communications are full, fair, accurate, timely and understandable. It is the
responsibility of each employee to uphold these standards. Appropriate records must

42

be kept of all transactions and retained in accordance with PepsiCos Records

Management Policy and Records Retention Schedule. Employees are expected to
cooperate fully with our internal and external auditors. Information must not be
falsified or concealed under any circumstance and an employee whose activities
because false financial reporting will be subject to disciplinary action, including
termination.

Financial comparison of Pepsi and Coke:

During 2008, the two companies turned in a remarkable similar set of
financial results.
Pepsi Company generated $20.4 millions throughout India, whereas Coke
Company generated $20.5 millions. Here Coke Company earned more money
when compared to Pepsi in India. So Coke dominated Pepsi in terms of the
revenue generation.
Pepsi Company earned $2.2milion in net profit and Coke Company earned
$2.2million net profit. Here the two companies are earning profits equally. So we
can understand that these two companies are competing with each other in an
equal position. For this they are adopting new strategies for the growth of their
revenue and the profits.
Pepsi Company generated free cash flow of $2.9 billion, whereas Coke Company
also generated the same amount of $2.9 million of free cash flows.

Criteria

Pepsi Company

Coke Company

Sales Growth

12.8 %

12.0 %

Gross Margin

69.6 %

61.1 %

Net Margin

10.7 %

10.6 %

Cash-to-Debit ration

0.55 %

0.33 %

Thus, Pepsi Company is either tied or has the edge over Coke in ever
category except Gross Margins. The sales growth rate of Pepsi is growing faster than
Coke Company. This is because of the strategies adopted by the Pepsi Company. Even

43

though 92% of the people through out the world know the brand name of Coke, they
are not able to capture the highest market share when compared to Pepsi. Pepsi has a
better ration of cash versus debt. Pepsi Company is the leader of the snacks producer
in the world having 46% of the total market share and more than seven times the size
of its next largest competitor, whereas Coke has not at all entered in to this field. In
this way also Pepsi dominated Coke in the field of snacks production.

2.6 PRODUCTION FUNCTION

44

Production function of the soft drink companies is very crucial and a continuous
process. In the summer season they work 24 hours a day around the clock, because
they have to supply the sufficient drinks to the market. Pepsi Company appointed
Krishna Mohan Beverages as a franchise in the year 1992 and later it was changed to
Pearl Bottling Pvt. Ltd. Pearl Bottling Pvt. Ltd. and working under Pepsi Company. It
started its production operations in June, 1992 and running successfully.

The reasons for Franchise:

Franchise is a contract, to which company gives the rights to do the business
under the name and image of principals. If a company sources its products from a
franchise, it does not require setting up its own manufacturing plant, it reduces the
investment in manufacturing facilities, inventory of raw material and other functions
required for the manufacturing process. The company saves the management time and
cost also. The company will control the quality of the products and the standards they
are maintaining. With the strong relation with the manufacturer can be assured of
regular supply of components as per the manufacturers specifications. The labor and
union employees involved in the manufacturing are the responsible for the franchise.
This is beneficial as it reduces the management time and involvement of solving their
issues. But initially the company has to invest on launching the products because as a
franchise will not take the risk of introducing the new products as they will not be
ready to bare the risk on capital.

Distribution regions of PBPL:

Pearl Bottling Pvt. Ltd is distributing its products in three districts. Those are:
Visakhapatnam
Vizianagaram
Srikakulam
East Godavari
West Godavari
After West Godavari, that region comes under Gunturu PBPL franchise. It is a
large unit when compared to Visakhapatnam unit.

45

Plant Capacity:
The layout of the bottling plant of PBPL confines for all the products based
on the line layout. The machine and equipment have been imported from Germany,
which produces the best capital equipment in the World. The company installed up to
date automatic plant confirming to plant layout. The capacity of the plant is 24000
bottles per hours i.e. at the speed of 400 bottles per minute. The months from March
to June, the plant is used to its peak in these summer season; the plant runs round
the clock. This is because the demand reaches its peak in these summer months,
hence they have to produce enough bottles of soft drinks at a speed to keep in pace
with the disappearance of soft drinks from the shelves of the retailers.

Quality Control:
PBPL is maintaining good quality control systems. Pepsi Company is the
trade mark for the quality products. The bottles are usually examined for impurities
continuously as the bottles move out. Samples are checked after every 10 minutes of
production time by the chemist for its quality and hygienic condition. The chemical
analysis is also made for flavours and the gas content is also checked. If any defects
are noticed, the production is suspended and the corrective measures are taken so as
to set right the bottling, process irregularities. Further samples from each batch are
dispatched to the affiliated parent agency company in each week for quality checkup.
Moreover, the agency of the company also lifts samples from the market at random for
quality check up at anytime to make sure that the quality is maintained to the exact
standard of the parent company. Every employee entering in to the production
department should wear the cap and hand gloves.
At the end of the production schedule, daily all the equipment, plant floor
and wet patches are cleaned with bleaching powder and other solutions. The standards
of hygiene maintained inside the production steps are commendable.

The production functions in PBPL:

46

The Visakhapatnam PBPLs main work is bottling. This is bottling and filling
station. The material used for making the drinks comes from USA in three forms, those
are:
Crystal form
Liquid form
Power form
In this form the company will get the raw material for the production. This
work will be done very confidentially, because the formula of the drinks should not be
revealed to its competitors. After receiving the raw material in PBPL they will mix the
water, sweeteners, preservators and carbon dioxide to that raw material according to
the fixed formula. Then the soft dink will be ready to use and this will be filled in the
bottles.
Initially four brands i.e. Pepsi, Mirinda, 7up and Lehar soda were bottled
and distributed where as Slice were supplied by Cuttack plant. In May 1993, a cloudy
lemon flavored drink called TEEM was introduced which was not well received by
consumers because of the well established brand LIMCA. In April 1998 a new cloudy
lemon flavour, namely Mirinda Lemon was introduced after discounting TEEM and got
success.
In syrup making process the syrup of a particular product is prepared by
heating sugar with activated carbon powder and filter (hyflousuper Cell) in the
treatment tank for a specified time up to a particular temperature. During treatment
most of the color, odor and some organic impurities are removed from the sugar syrup.
This treated syrup passes through the filter press filter with filter papers and heat
exchanges and the clear syrup is collected in the syrup moving tank where the essence
of particular product will be added for which a required amount of sugar is taken for
treatment. The essence and sugar syrup are mixed into the tank with the help of a
mechanical stirrer and finally the flavour syrup is ready for use in finished products.
The second process is water treatment. As an added ingredient water can
compromise up to 90% of a soft drink. The quality of water is thus of a particular
importance to the soft dinks manufacturers. In this process water will be brought to
the treatment tank and then water treatment chemicals such as hydrated lime,
bleaching powder and ferrous sulphate are added to the tank and are moved
thoroughly by the help of mechanical stirrer. The treated water is then passed through

47

the specially designed filtration plant containing chemicals such as activated carbon
(granular) and finally the manufactured will get the standard water i.e. suitable for soft
drinks and then bottles moves towards crowner where the sealing is done with the
help of crowns. The crowns are used in order to retain the carbonation flavours as well
as to protect the products from outside contamination and spoilage. The bottles are
checked for maintaining the required standard. Finally, the filled bottles are checked
for maintaining the required standard and the filled bottles are collected in plastic
creates from the conveyor. The marketable lot comprises of a crate and is filled with 24
bottles in each plastic crate. This crate is mainly useful to protect the bottles and keep
them in good condition and eliminates breakage and is also collected back in the same
crates. Then the finished products are transferred to the shipping department for the
distribution.

2.7 FUTURE PLANS

48

Every company will have the future plans; in the same way Pepsi Company
also has its future plans to increase its sales and the market share in the soft drinks
industry. After a long research work they will go for the new plans. Some of the future
plans were given below.
In order to capture Indian food market PepsiCo India is planning to launch
indigenous food products. PepsiCo is going to make an investment of around $110
million in its beverages business in India to increase the production capacity and the
quality of the products. On future plans, the company will launch Lipton ice tea all over
the country this summer. Gatorade, its sports drink, will also be bottled in India this
year. The company is also seriously considering bringing some products from Quaker
Oats into the country. PepsiCos beverage business has also decided to invest $220
million in the current year.
Indra Nooyi, PepsiCos Indian face, says the $27-billion foods and beverages
giant will invest $300m-$500 millions into its India operations over the next five years
and clearly indicated that the fast-growing snack foods business was going to be the
growth driver in the country.
Clearly, the snacks business which has grown five-fold in the past four
years is lifting PepsiCos fortunes. The CEO of Pepsi India, Nooyi says the company
is now looking at tripling this business in the next three years or so, and is even
testing Leher Kurkure for the US and UK markets.
It is learnt that the total investment for the beverage business of PepsiCo
India for the next three year will be around $350 million. PepsiCo India on Monday
announced a Rs 1,000-crore investment for this calendar year that will see the food
and beverage major expanding its manufacturing capacity and supply chain, among
others, in the country.
In this way Pepsi India Company is taking steps to increase their sales and
their market share in the soft drinks industry.

49

3.1 INTRODUCTION

50

The main part of the report i.e. Analysis part is covered in this chapter.
Investigator conducted survey in 300 Retail outlets in 3 various areas. After conducting
the survey, the total collected information has been interpreted using a structured
format. The required information is derived from that format and later interpretation
and analysis have been done using that information. This analysis part contains tables
and graphical representation. Only histograms have been used in this graphical
representation. We can understand the information easily through the graphs and can
come to a conclusion from the final information from this chapter. Because of that
reason this chapter is very important in the entire study of the project. Without this
analysis and interpretation we can not give the essence of the study easily. This
chapter is very useful to conclude the total survey and also can understand the
position of the company and the opinion of the retailers and customers regarding the
company.
This chapter is totally based on the primary data collected through the survey
conducted on the retailers of various markets. This survey is also is very useful to the
company also to understand and take the further steps to improve their performance
and through that they can get a good market share in the soft drink industry. In this
chapter the interpretation is also provided along with the analysis of the collected data.
The company may get the valuable information through this interpretation. Because of
this reason the investigator has chosen this study.

3.2 DETAILS OF THE SURVEY CONDUCTED

51

The total data collected in three areas in Srikakulam district of total of 300 retail
outlets. They are given below:

Table 3.1
Respondents Analysis
CLUSTER

SAMPLE SIZE

AREA

Percentage

Cluster-1

130

Srikakulam

43

Cluster-2

90

Amadalavalasa

30

Cluster-3

80

Narasannapeta

27

Total

300

100

The table explains the sample size and the respondents in three clusters
selected for the project work. Out of the 300 retail outlets, 130 outlets comprising 43
Percent of sample size are taken from Srikakulam market, 90 retail outlets comprising
of 30 Percent of sample size from Amadalavalasa market and the remaining 80 outlets
comprising of 27% from Narasannapeta market respectively. It is concluded that most
of the respondents (retail outlets) are selected from Srikakulam market for conducting
the study. All these three markets are adjacent to one another in same district.
Because of this reason the retailers as well as the consumers behavior will be similar.
Because of this reason we can understand the market that particular area well.
Investigator has chosen these markets for his study because these are the local
markets for him and will be useful to know the market condition of his residing area. If
the investigator has chosen any other market the study may become difficult and also
may not get the proper information from the retailers. The markets selected for the
survey belongs to the rural areas. This may help the investigator to understand the
mindset of the retailers as well as the consumers in the rural areas and his suggestions
to the company regarding the rural market condition of soft drinks will be useful to the
company.

Table 3.2
Pepsi & Coke Brands Available In Various Clusters:
52

S.No
1.
2.
3.
4

Market
Srikakulam
Amadalavalasa
Narasannapeta
Average

Pepsi
5
5
5
5

Coke
6
5
7
6

It is found from the table 3.2 that, out of 130 outlets from Srikakulam
market on average 5 Pepsi brands, 6 Coke brands are available. Out of 90 outlets from
Amadalavalasa market, on an average 5 Pepsi brands and 5 Coke brands are available.
Out of 80 outlets from Narasannapeta market 5 Pepsi brands and 7 Coke brands are
available. On an average Pepsi 5 and Coke 6 brands are available. It is concluded that
Coke dominated Pepsi in terms of availability of its brands in Srikakulam and
Narasannapeta markets and in Amadalavalasa market both are in equal place.

Table 3.3
Top brands Available in Srikakulam Cluster:
S.No

Brands

Retail outlets
53

Percentage

1.

Slice (Pepsi)

59

46

2.

Mirinda (Pepsi)

32

24

3.

Sprite(Coke)

26

20

4.

Limca(Coke)

13

10

130

100

Total

It is found from table 3.3 that Slice a Pepsi brand with 46% of total
sales occupied the top position in Srikakulam market. Mirinda occupied the second
place with 24%, Sprite occupied the 3 rd place with 20% and Limca occupied the last
place with 10% respectively in the top selling soft drink brands in Srikakulam market.
This indicates the increase in the consumption of the fruit based drinks in Srikakulam
market. So it is concluded that Pepsi Company dominated Coke Company in
Srikakulam market in terms of top selling brands.

Table 3.4
Top Four Brands Available In Amadalavalasa Cluster:
S.No

Brands

Retail outlets
54

Percentage

Mirinda (Pepsi)

36

40

7 Up (Pepsi)

23

26

Sprite (Coke)

16

18

Thumps Up (Coke)

15

16

90

100

Total

It is found from table 3.4 that Mirinda, a Pepsi brand with 40% of total
sales occupied the top position in Amadalavalasa market. 7 Up occupied the second
place with 26%, Sprite occupied the 3rd place with 18% and Thumps up occupied the
last place with 16% respectively in the top selling soft drink brands in Amadalavalasa
market. So it is concluded that Pepsi Company dominated Coke Company in
Amadalavalasa market by occupying the first two positions in terms of top selling
brands.

Table 3.5
Top Four Brands Available In Narasannapeta Cluster:
S.No

Brands

Retail outlets
55

Percentage

Thumps up (Coke)

30

38

Mirinda (Pepsi)

25

31

Sprite (Coke)

15

19

Slice (Pepsi)

10

12

80

100

Total

It is found from table 3.5 that Thumps up; a Coke brand with 38% of total
sales occupied the top position in Narasannapeta market. Mirinda occupied the second
place with 31%, Sprite occupied the 3 rd place with 19% and Slice occupied the last
place with 12% respectively in the top selling soft drink brands in Amadalavalasa
market. So it is concluded that Coke Company dominated Pepsi Company in
Amadalavalasa market by occupying the first positions in terms of top selling brands.

Table 3.6
No of Bottles Sold per Day in various individual Clusters:
Brand

Srikakulam

Pepsi

52

Amadalavalasa Narasannapeta
45

42
56

Average
46

Coke

44

35

50

43

It is found from table 3.6 that on an average 52 bottles of Pepsi brands and
44 bottles of Coke brands are sold in Srikakulam market, 45 bottles of Pepsi brands
and 35 bottles of Coke brands are sold in Amadalavalasa market, 42 bottles of Pepsi
brands and 50 Bottles of Coke brands are sold in Narasannapeta market per day. On
average of these three markets 46 bottles of Pepsi brands and 43 bottles of Coke
brands are sold per day. So it is concluded that Pepsi Company dominated Coke
Company in these areas in terms of no. of bottles sold per day.

Table 3.7
Service (supply) required to the retail outlets from the company:

S.No

Market

Daily

Alternative Days
57

Weekly Twice

Srikakulam

63

25

12

Amadalavalasa

49

27

24

Narasannapeta

55

36

Average

56

29

15

It is found from table 3.7 that most of the retailers in all the areas
required the daily service (supply) of soft drink companies. On an average of all the
markets 56 % of the retailers require the daily service of the company, 29 % of the
retailers require the alternative days service and remaining 15% retailers only require
the weekly twice service. So it is concluded that the most of the retailers require the
daily service (supply) from the soft drink companies that indicates the high sales of the
soft drinks.

Table 3.8
Satisfaction levels with Pepsi Companys Service (Supply):
S.No

Market

Highly satisfied

Satisfied

Not satisfied

Srikakulam

60

40

58

Amadalavalasa

65

30

Narasannapeta

70

28

Average

65

33

It is found from table 3.8 that in all these areas majority of the retailers are
highly satisfied with the Pepsi service and less number of the retailers is satisfied with
the service of the Pepsi Company. On an average of all the markets most of the
retailers i.e.65% is highly satisfied with the Pepsi service (supply), 33% retailers are
satisfied with the service of the Pepsi and the remaining 2% are not satisfied with the
service of the Pepsi Company. So it is concluded that the retailers are highly satisfied
with the service (supply) of the Pepsi Company.

Table 3.9
Satisfaction of levels with Coke Companys Service (Supply):
S.No
1

Market

Highly satisfied

Satisfied

Not satisfied

Srikakulam

45

50

59

Amadalavalasa

40

55

Narasannapeta

45

50

Average

43

52

It is found from table 3.9 that on an average of all the markets 65% retailers
only are highly satisfied with the Coke service (supply), 50% retailers are satisfied
with the service of the Coke and the remaining 5% are not satisfied with the service of
the Coke Company. So it is concluded that the service of the Coke Company is
moderate when compared to Pepsi Company. So here Pepsi dominated Coke in terms
of the service (supply) to the retailers.

Table 3.10
Retailers opinion on Trade Schemes offered by Both Companies in Various
Clusters:
S.No

Market

Pepsi
60

Coke

Srikakulam

41

59

Amadalavalasa

49

51

Narasannapeta

41

59

Average

44

56

It is found from table 3.10 that in all the areas majority of the retailers
agreed with the Coke when compared to Pepsi. On an average most of the retailers
i.e.56% voted for Coke Company for its trade schemes offered to the retailers and the
remaining 44% of the retailers are voted for Pepsi Company for its trade schemes
offered to the retailers. So it is concluded that Coke Company dominated Pepsi in
these areas in terms of the trade schemes offered to the retailers.

Table 3.11
Opinion on Consumer Promotions offered by both Companies:
S.No

Market

Pepsi

Coke

Srikakulam

61

39

61

Amadalavalasa

57

43

Narasannapeta

60

40

Average

59

41

It is found from the table 3.11 that majority of the retailers of all these
areas are satisfied with Pepsi Company for its consumer promotions offered to the
consumers. On an average most of the i.e. 59% is satisfied with the consumer
promotion offers offered to the consumers and the remaining retailer i.e. 41% of the
retailers are satisfied with the Coke consumer promotions offered by the Coke
company offered to the consumers. So it is concluded that Pepsi dominated Coke in
these areas in terms of consumers promotions offered to the consumers.

Table 3.12
The influence of T.V Ads in increasing the sale of Soft Drinks:
S.No

Market

Yes
62

No

Srikakulam

74

26

Amadalavalasa

51

49

Narasannapeta

60

40

Average

62

38

It is found from the table 3.12 that on an average most of the retailers
(62%) are saying that T.V Ads will help in the increase in the sales of the soft drinks
and the remaining (38%) are saying that there will be no influence of T.V Ads on the
increase of the sales of the soft drinks. so it is concluded that there will be influence of
the T.V Ads on the increase in sales of the soft drinks a lot.

Table 3.13
Comparing the increase in sales from 2008-2009
S.No

Market

High

Less
63

Same

Srikakulam

55

40

Amadalavalasa

30

63

Narasannapeta

40

48

12

Average

42

50

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

Table 3.14
The Percentage of Fruit Based Soft Drinks in Total Sales

64

S.No

Market Area

30%

20%

10%

Srikakulam

30

33

37

Amadalavalasa 29

34

37

Narasannapeta 34

32

34

Average

33

36

31

It is found from the table 3.14 that on an average most of the people
(36%) are saying that the sales of the fruit based soft drinks are comprises 10%,
33% of the retailers are saying fruit based soft drinks comprising 20% of the total
sales of soft drinks and the remaining 31% retailers are saying that fruit based soft
drinks comprises 30% of the total sales of the soft drinks. So it is concluded that the
consumption of fruit based soft drinks has been highly increased and go on increasing.
The reason for this is the awareness of the health consciousness.

Table 3.15
Pepsi Visi coolers and other coolers available in the Market

65

S.No

Market

Pepsi cooler

Coke+ other coolers

Srikakulam

32

68

Amadalavalasa

21

79

Narasannapeta

31

69

Average

28

72

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

Table 3.16
Most Soft Drinks Consuming Category in Various Markets

66

S.No

Market

Male

Female

All People

Youth

Srikakulam

18

10

59

13

Amadalavalasa

12

11

56

21

Narasannapeta

19

18

39

24

Average

16

13

51

20

It is found from the table 3.16 that on an average most of the retailers
(51%) is saying that the soft drinks are consumed by all age and all gender people
with out no difference. The next places were occupied by the youth, Male and Female
respectively. So it is concluded that the consumption of the soft drinks became a
common thing to all the group of people mainly the youth and because of this reason
the sales of the soft drinks go on increasing.

Table 3.17
The mode of payment for the soft drinks [Cash or Credit]
67

S.No

Market

Pepsi

Pepsi

Coke Cash

Coke

Srikakulam

Cash
100

Credit
0

100

Credit
0

Amadalavalasa 100

100

Narasannapeta 100

100

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

Table 3.18
Consumption of Soft Drinks at Home and at Shop:
68

S.No

Market

At Shop

At Home

Srikakulam

80

20

Amadalavalasa

70

30

Narasannapeta

75

25

Average

75

25

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

The comparison of Pepsi and Coke in the there surveyed areas:

The survey is conducted in the three market areas existing in Srikakulam
District. According to the survey conducted, both the companies Pepsi and Coke have

69

the same (similar) market share. When compared to Coke, Pepsi has some what high
market share according to the survey. Many theses are declaring the different market
shares of the both companies but nobody can decide the exact market shares of the
two companies, because these shares are not stable and rapidly changing.
When we compare the brands availability of both companies in these three
markets, Coke brands availability is more when compared to Pepsi Company Brands.
When we analysis the reason for this, Pepsi Company is not concentrating on all their
brands and concentrating on the most selling brands and they are supplying those
brands more. In case of Coke Company, it is concentrating on all their brands that
mean they are trying to satisfy all the customers by providing/supplying all its
products. Some Pepsi brands are available in some places only, for example Mountain
Dew.
In case of the top 4 most selling brands in these surveyed area, out of 3
market areas in 2 markets Pepsi brands occupied the first place. From this we can say
that Pepsi brands are in top selling drinks position in the market. The reason for this is,
Pepsi Company is spending more money on advertising with to film stars, sports stars
and the celebrities. Because of this reason many people are attracted towards the
Pepsi Companys brands.
When we come to the service (supply) to the retailers, most of the retailers
(65%) are highly satisfied, 33% retailers are satisfied (moderate) and the remaining
2% retailers are not satisfied with the service of the Pepsi Companys service. In case
of Coke Companys service 43% of the retailers are highly satisfied, 52% of the
retailers are satisfied (moderate) and the remaining 5% of the retailers are not
satisfied. From this information we can understand that Pepsi Companys services to
the retailers are good when compared to Coke. Even though Pepsi Company is not
providing all their products to the retailers, it is supplying the limited products in a
good way. In case of Coke Company, even though Company is providing all its
products, it is not able to supply those products in a proper manner that is in time
delivery supplying sufficient drinks to the retailers.
The schemes offered to the retailers are important incase of all the products,
because retailers are the makers and breakers of the companys profits. When we
come to the soft drink industry it has its own importance. In the surveyed areas on an
average 56% of the retailers are satisfied with the trade schemes offered by the Coke

70

Company and the remaining 44% of the retailers are satisfied with the Pepsi
Companys trade schemes offered to the retailers. That means Coke is providing good
trade schemes like with every case of cool drinks on bottle free along with the general
profits, free gifts, appreciations to the retailers who sold more drinks in that market
area etc. are good when compared to Pepsi Company. To improve the good will and
loyalty of the retailers Pepsi Company has to adopt the new strategies to develop the
new schemes.
The schemes offered to the consumers are important, because the
consumers are attracted towards the soft drinks by seeing the offers. These offers will
create an anxiety that we may win that gift by drinking that particular brand drinks. To
utilize this company will introduce these consumer promotional offers. In the surveyed
areas on an average 59 percent of the retailers are satisfied with the promotional
offers offered by the Pepsi Company and the remaining 41 percent of the retailers are
satisfied with the consumer promotional offers offered by the Coke Company. From
this we can understand that Pepsi Company is providing good consumer promotional
offers when compared to Coke Company. Because of this attractive consumer
promotional offers most of the consumers are being attracted toward the towards the
Pepsi Companys products.
To know whether a retailer is selling the Pepsi Company products or Coke
Companys and to promote the sales of their Company drinks the companies are
providing the companys Visi Coolers (from which all the drinks which are kept in the
Cooler are visible to out side through a glass door) to the retailers for free of cost.
Only 28% of the retailers are using the Pepsi Companies Visi Coolers and remaining
72% of the retailers are using the Coke and other coolers in their retail store. From
this we can understand that when compared to Pepsi Company, Coke Company
provides more no. of Visi Coolers to the retailers. To improve the sales of Pepsi
Company they have to provide the Visi Coolers to the retailers. By observing all the
above things we cant determine who the market leader of the soft drinks industry,
Pepsi or Coke. This is fluctuating continuously in the market.

71

4.1 SUMMARY

72

The Project entitled Retailers Perception on soft drinks- A Comparative

Analysis of Pepsi V/s Coke has been divided into four chapters to arrange the total
information in a perfect manner.
The first chapter deals with the Introduction, Need for the Study, and
Objectives of the Study and Limitations of the study. Through this chapter we can
understand the opinion of the investigator on that project and the interest he paid on
the project. From this chapter we can know the over view of the soft drinks industry an
the Pepsi Company in a very detailed manner. In the Introduction (1.1) the details of
the soft drinks industry i.e. origin of the soft drink industry, growth of the industry and
the major players of the industry and the total details of the Pepsi Company and the
position of Pepsi Company in India and some other details pertaining to the Company
has been given. After giving the details of the Company, the topic introduction was
given like the definitions of the topic collected from different sources and the analysis
of those definitions were explained. After the explanation of the definition, the
importance of the study and the use of the study to the Company were clearly
explained. This will help to understand why the investigator has chosen the topic as his
project.
After the introduction the Need for the study (1.2) has been explained briefly.
In this, why the investigator has chosen that topic and what can he get from that
study and how it is useful to him is explained briefly. Because without any need the
study will not be conducted. After explaining the need of the study the Objectives of
the Study (1.3) was given.

In this part, what information the investigator wanted

collect and why he wanted to do the project in that particular company and what goal
he wanted to reach through this project has been clearly explained. Finally the
limitations of the study (1.4) were given in the first chapter. For every study there will
be some limitation and we may call those as hurdles for the study. The limitations may
be the time limits, financial limits or troubles from the environment. In this study
environment means the markets and the lack of awareness in the retailers.

73

The second chapter deals with Genesis and Growth of the company,
Organizational structure of the company, all the functional areas like Marketing, HR,
Finance and Production, finally the Future trends of the Company.
All these functions are explained. In Genesis and Growth of the Company
(2.1), the origin of the soft drinks industry and Pepsi Company and its gradual growth
of the Company has been explained. The growth of the Company has shown year by
year. The milestone of 2000-08 of the Company has also been included in this portion
of the second chapter. After the explanation Genesis and Growth of the Company the
Organization Structure (2.2) of the Company and its importance and the use has
been explained with the Organization Chart of the Company. By using the Organization
Chart we can understand the position of the management in that Company and the
relation between the superiors and the subordinates in the Company. The Organization
structure can decide the future of the company whether it is going to be successful or
a failure one. After this the Marketing function (2.3) of the Company has been
explained in a very detailed manner. In the marketing strategies of the Company and
the technique of the Company has been explained. In this the Comparison between the
Pepsis and Cokes marketing functions has also been provided like comparison
between the Slogans of the Companys, Logos of the Companys and the Comparison
of the Advertisements of the Companys.
After the marketing function the HR functions (2.4) of Pepsi Company has
been explained. In this the code of conduct of the company and the respect the
company is giving to the employees and the facilities provided and the precautionary
steps taken for the health and safety of employees has been explained in this portion.
After completion of the HR function the Finance functions (2.5) was given. In this the
details of the capita used for the establishment of the Company in India have been
given. In this the Protection and the Proper utilization of the resources and how to
keep the records and company accounts has also been explained. The total financial
comparison of Pepsi and Coke was given in this portion.
After the Financial functions the Production function (2.6) was explained. In
the production function the details of the production of the soft drinks was explained
i.e. how the water purification treatment will be conducted, how the syrup will be
prepared, on what basis the sugar will be added to the syrup to prepare the final
product very clearly point by point. In this chapter the details starting from the water

74

treatment to the loading of the soft drinks in the Lorries has been explained with the
suitable diagrams. Finally, the future trends of the Company i.e. what steps the
company is going to take for its development and progress to reach in top position in
the soft drink industry and to get the highest market share.
The third chapter includes the data analysis and interpretation. In this
chapter, the data collected from 300 retail outlets through the survey conducted
personally during the project period has been summarized, tabulated, analysed and
interpreted very clearly.
This is a very important chapter in this project work. This chapter gives the
clear picture of the total study to the observer. A specified questionnaire was prepared
to collect the information from the retailers regarding their opinions on the soft drink
companies. The questionnaires were given to the retailers and asked them to fill them.
The total data collected from the retailers has been summed up carefully using a
specified format. The total data was entered in that format and some calculations were
made. Finally some required data was extracted and tabulated to give a clear picture.
From that tabulated data the graphs have been prepared. By the observation of the
graphs the interpretation was done.
Interpretation is the result of the total study. Based on the interpretation the
comparative study between Pepsi and Coke was done. From this interpreted
information we can understand the position of the Pepsi Company and Coke Company
Comparatively in the three surveyed clusters. This chapter is very useful to the
investigator to do the comparative Analysis between the Pepsi and Coke Companies.
The major findings are as follows:

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4.2 FINDINGS
1. Coke Company dominated Pepsi Company in terms of availability of its brands in
Srikakulam, Narasannapeta and Amadalavalasa Clusters.
2. Pepsi Company dominated Coke Company in Srikakulam and Amadalavalasa
Clusters and Coke dominated Pepsi in Narasannapeta Cluster in terms of top
selling soft drink brands.
3. Pepsi Company dominated Coke Company in these three Clusters in terms of
number of bottles sold per day.
4. Most of the retailers (56%) require the daily supply (service) from the soft drink
Companies, which indicates the high sales of the soft drinks.
5. Most of the retailers are highly satisfied with the service (supply) of Pepsi
Company.
6. The service of Coke Company is moderate when compared to Pepsi Company, so
here Pepsi dominated Coke Company in terms of Service (supply) to the
retailers.
7. Coke Company dominated Pepsi Company in these three Clusters in terms of
trade schemes offered to the retailers.
8. Pepsi Company dominated Coke Company in these three Clusters in terms of
consumer promotional offers offered to the consumers.
9. There will be influence of the T.V Ads on the increase in sales of the soft drinks a
lot.
10.

The

increase

in

the volume of sales from 2008-2009 is moderate and the chance of increase is
high in future.

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11.

The consumption
of fruit based soft drinks has been highly increased and goes on increasing. The
reason for this is the awareness of the health consciousness in the people.

12.

Pepsi Company is
not providing the sufficient Pepsi Visi Coolers to the retailer and when compared
to the Pepsi Visi Coolers the Coke Visi Coolers are more in these clusters, where
the survey was conducted.

13.

Consumption

of

the soft drinks became a common thing to all the group of people mainly the
youth. Because of this reason the sales of the soft drinks goes on increasing.
14.

The

Companies,

both Pepsi and Coke are not at all providing any credit to the retailers while
purchasing the soft drinks.
15.

The consumption
of soft drinks is more at the shops when compared to the consumption at home.

16.

The dealers are

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

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4.3 SUGGESTIONS
1. Pepsi Company has to supply their entire product sufficiently and regularly in
time to the retailers in these clusters. So that the loyalty of the retailers will be
increased.
2. The Pepsi Company has to maintain the top position and has to try to increase
their performance in Srikakulam and Amadalavalasa cluster and it has to
evaluate the reasons for not capturing the top position in Narasannapeta cluster.
According to the reasons the company has to take the steps to reach the top
position.
3. As most of the retailers require the daily supply, the Company has to supply the
drinks daily to the retailers, so that they can serve the consumers according to
their requirements. If they dont supply the drinks daily and sufficiently the
sales will be decreased.
4. As the retailers are highly satisfied with Pepsi Companys service and not that
much satisfied with Coke Companys service (supply), Pepsi Company can use
this opportunity to attract the retailers towards Pepsi by explaining the quality of
Pepsi Companys service to increase the sales of the company.
5. The trade schemes offered by Pepsi Company to the retailers should be
increased and also profitable to the retailers. If they are satisfied with the offers
then they will promote the drinks more and the profit will be more to the
company.

78

6. Pepsi Company should introduce the new and attractive consumer promotional
offer. Then the consumers will be attracted towards the Pepsi brands. Then the
profits of the company will be increased.
7. As the T.V Ads are influencing the soft drink sales, the company should design
the new ads in an attractive way. The ads should be change frequently. The
different ads should be shown in different regions according to the culture of
that area.
8. As the health consciousness is growing, the people are consuming the fruit
based soft drinks. Company has to conduct some programs to bring more
awareness of the fruit based soft dinks and its benefits to the consumers. Then
the sales of the fruit based soft drinks sales will be increased.
9. Pepsi Visi coolers are supplied very less to the retailers when compared to coke.
The company has to supply more Visi coolers to the retailers to increase their
business. The company also has to check the condition of the Visi coolers
regularly and if any problems are there then they have to rectify those
problems.
10.

The

soft

drink

companies are not providing the credit. This is a problem to the retailers
because they have to invest the amount before the sales of the soft dinks. This
may be the problem for some retailers with low investment. So it is better to
provide the credit system to the retailers.
11.

When

compared

to the previous years the consumption of the soft drinks at home increased. The
pet bottles are mostly consumed at home, so the sales can be increased by
providing some more offers on the pet bottles and promote the sales of the pet
bottles.

79

4.4 CONCLUSION
The project was a great experience for me in order to study the marketing
aspects in the world. It was a great opportunity for me to do the project work in the
end of the course because till now we learned the theory regarding the marketing and
the marketing related concepts, but now we got the chance to implement that
theoretical knowledge to do the project and got the practical experience in the
marketing field. Through this study I learned a lot that how to approach a customer or
any other people and how to explain our view to them.
Soft drink industry is a vast growing industry when compared to many other
industries. This industry is a place where two major players are there in the world.
Pepsi Company is one of them. Doing my project in Pepsi is a great experience as it
gave me lot of opportunity and scope to understand the soft drink industry and its
marketing structure and distribution channels.
Lot of valuable information regarding the company and also the retailers, has
been collected from the survey, which helped me clearly to understand the real
problems faced by the marketers to distribute and also make retailers to sell the
companys products in the market. I understood how difficult to do the marketing in
the present scenario to get success in the marketing field. From the analysis of the
data collected from the retailers the investigator got some important findings
regarding the company and the industry. For those findings some of the suggestions
made to the company were really applicable for the growth and benefit for the

80

company in order to increase its market share and to become the market leader in the
soft drink industry, because a large number of competitors craving for the same
market. I got appreciation for the suggestion to the Company.
Thus, finally it can say that the Company needs a lot of improved distribution
channel management activities along with various promotional strategies for the
customers to get the top position in the soft drink industry. I wish the company to
achieve its objectives achieved soon.

81

QUESTIONNAIRE
Name of the Student:

Date of

Survey:
College & Town:
82

1.

Name of the shop/owner:

A. Address:
B. Phone:

2.

What are the Pepsi company drinks are available in your shop?
Pepsi

Mirinda orange

Mirinda Lemon

7 Up

Mountain Dew

Slice

Evervess Soda

Diet Pepsi

Aquafina Water

Total
3.

4.

5.

What are the Coke Company drinks available in shop?

Thumps Up

Fanta

Coca- Cola

Sprite

Kinely Water

Kinely Soda

Limca

Maaza

Minute Made

Diet Coke

Total

Top brands Purchased by consumer in your shop?

1st ______________

2nd ______________

3rd ______________

4th _______________

What are your Sales in terms of Bottle per day in your shop?
A. Total No. of bottles________________
B. Pepsi Bottles Sold ________________
C. Coke Bottles sold ________________
83

6.

How do you require the Service (supply) by soft drink Companies?

A. Daily

7.

B. Alternate Days

Please indicate your satisfaction level with Pepsi Service (supply)?

A. Highly satisfied

8.

B. Satisfied

B. Satisfied

C. Not satisfied

Trade Schemes offered by which company is good to you?

Pepsi

10.

C. Not satisfied

Please indicate your satisfaction level with Coke Service (supply)?

A. Highly satisfied

9.

C. Weekly 2 times

Coke

Consumer Promotions offered by which company is good in your

opinion?
Pepsi

11.

Coke

Do you feel T.V advertisements by drink companies help in more sales

of Drinks?
Yes

12.

No

What is the influence of T.V Ads on sales of soft drinks in your shop?
84

Increased

13.

Decreased

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

30%

14.

Same

20%

10%

Utilization pattern of Pepsi Visi Cooler?

Full of Pepsi Drinks
Full of Pepsi+ Coke Drinks
Pepsi Drinks+ Other Packs

15.

Why did you keep other products in Pepsi Cooler?

Electrical Bill
No Own Cooler

16.

What is the percentage contribution of soft drinks business in your

total business?
_____________________________________________________

17.

What is the shop keeper suggestion to improve Pepsi Company Sales

in 2009?
_____________________________________________________
85

18.

Soft Drinks are mostly consumed by whom?

Male

19.

20.

Female

by All

by Youth

What is the mode of payment to purchase the soft drinks?

Pepsi

Cash

Credit

Coke

Cash

Credit

What is the percentage of consumption of soft drinks at your shop and

consumer residence?
Shop

Home

BIBLIOGRAPHY
Books Referred
S.No

1.

Author

Philip kotler

Title

Publisher

Marketing

Prentice,

Management

Hall of India

86

Volume

Year

12th

2005

2.

VS Ram Swami

Marketing

Mac Millan

3rd

2005

3.

Chunawalla S.A

Advertising

Hall of India

12th

2005

Journals Referred
Journal Name

Volume

Month

Year

________________________________________________________
Indian Journal of Marketing

XXXVIII

May

2008

The ICFI journal of Marketing Management

VI, No.1

February

2007

Web Sites Referred:

WWW.Pepsi.com
WWW.pepsiindia.com
WWW.coke.com
WWW.scribd.com

WWW.justdrinks.com

87