4Ps Analysis of Nestle and Cadbury Dairy Milk pvt.

Ltd

Pvt.Ltd

MASTER OF BUSINESS ADMINISTRATION

to PUNJAB TECHNICAL UNIVERCITY Submitted byShailendra kumar sharma Regd.no. DBS/09-11/W-083/B And Sandeep kumar Regd.no. DBS/09-11/W-081/B Submitted toMs. PRITTY SINGH (Faculty of marketing management)

dbs
delhibusinessschool
creating corporate connoisseurs

The comparison of the 4 Ps of the pepsi and cocacola pvt. Ltd

Objective of the study

In this project, our main focus was to analyze Beverage taking into consideration the 4 Ps of the marketing mix. To analyze various product attributes of Beverage its management in the current scenario. To study the entire distribution mix of the product line. To critically comment on the pricing strategy adopted by the company. Lastly our study will also focus on the various promotional aspect of the brand in Beverage and also promotional mix of the product line.

INTRODUCTION Coca-cola
HISTORY Type: Public Founded: 1892 by Asa Griggs Candler Headquarters: Atlanta, Georgia, USA Industry: Beverage Products Beverages: Web site: www.cocacola .com Origin of the product: Dr. John Stith Pemberton for the first time produced the syrup for Coca-Cola on May 8, 1886 The history of the Beverages industry started when Atlanta, Georgia druggist John Stith Pemberton invented coca wine called Pembertons French Wine Coca in 1884.

 He was inspired by the formidable success of French Angelo Marianis coca wine, Vin Mariani to compete with the many patent medicines and cure - all elixirs of that time. His company recommended it for the relief of hangovers headaches, menstrual pains, and a host of other problems. One warm summer day Pemberton took some syrup down to will is venerable at Jacobs Drug Store in Atlanta. An ounce of the mixture was put into a glass, which was then filled with water and ice, creating the WORLDS first Coca-Cola

Origin of the company:

The following year, when Atlanta and Fulton County passed Prohibition legislation, Pemberton began to develop a non-alcoholic version of the French Wine Coca. He named it Coca-Cola, because it included the stimulant coca leaves from South America and was flavoured using kola nuts, a source of caffeine. Pemberton ran the first advertisement for the beverage on May 29 that year in the Atlanta Journal. In 1887, while suffering from an ongoing addiction to morphine, Pemberton sold a stake in his company to Asa Griggs Candler, who incorporated it as the Coca Cola Corporation in 1888. In the same year, Pemberton sold the rights a second time to three more businessmen: J.C. Mayfield, A.O. Murphy, and E.H. Bloodworth. Meanwhile, Pembertons alcoholic son Charley Pemberton began selling his own version of the product. Three versions of Coca-Cola sold by three separate businesses were on the market. When the United States entered World War II, The Coca-Cola Company began providing free drinks for soldiers of the United States Army. The United States Army permitted Coca-Cola employees to enter the front lines as Technical Officers where they operated Cokes system of providing refreshments for soldiers Coca-Cola set up bottling plants in several locations overseas to assure the drinks availability to soldiers, setting the stage for the companys post-war overseas expansion. The popularity of the drink exploded as American soldiers returned home from the war with a taste for the drink.

 Before the United States entered World War II, the difficulty of shipping Coca-Cola concentrate to Germany and its occupied states led to the creation of a new drink by a Coca-Cola employee, Fanta. Fantas origins date back to World War II when Max Keith, who managed Coca-Colas operations in Germany during the war, ran out of the ingredients for Coke, which could be supplied only from the United States. Keith resorted to producing a different soft drink, Fanta, which proved to be a hit, and when Coke took over again after the war, it adopted the Fanta brand as well. The German Fanta K/are Zitrone (Clear Lemon Fanta) variety became Sprite, another of the companys bestsellers In the 1930s, Robert W. Woodruff became president of the Coca-Cola Company, presiding over the drink and its destiny till his death in 1985. Although he eventually stepped down from his post due to stress, he retained control over the company despite holding positions with an ostensibly low profile. The headquarters of Coca-Cola, now listed by fortune as one of the 50 top corporations in the United States, is still in Atlanta, Georgia. The actual sale and distribution of that magic elixir which, needless to say, on longer contains cocaine - is handled largely by a number of independent bottlers. These bottlers buy syrup, mix it with carbonated water, and distribute it to retailers in their area. The number of retailers who sell Coke to the public almost exceeds counting.

PEPSI
Type: Public Founded: 1903 by DCC BROADHAM Headquarters: New York, USA Industry: Food & Beverage Products: Beverages,Snacks Origin of the product: It starts with a small drug store in North Carolina. This little store belonged to young chemist by the name of DCC BROADHAM. He invented a drink that the customers called BROADS drink. In 1903, Bradham got its drink registered formally by the name of PEPSI COLA

Origin of the company:

He set his own company and kept its sales improving gradually. By 1909, more then 250 bottlers in different American states had been allowed to sell under the PEPSI COLA license. PEPSI COLA was first sold in the standard size of 6.5 ounces. In 1932 PEPSI COLA took courage enough to introduce a bottle of 12 ounces. In 1950 the PEPSI COLAS formula had been changed by reducing its sweetness and calories and a new advertising campaign Refresh without filling had been launched effectively. Under the supervision of the diligent sales staff and the Marketing experts, PEPSI COLA began setting new records of eminence. At 30 plants per year, new plants were established all across the globe. A new attractively designed bottle had been introduced in 1957 in place for the 20 years old bottle, and the product line had been enhanced to introduce the new flavors of TEAM & MIRINDA. PEPSI COLA today is available to more than a billion people in 153 different countries which include the central independent states and China.

MARKETING MIX

Definition
The 'marketing mix' is a set of controllable, tactical marketing tools that work together to achieve company's objectives

Four Ps
Product

In marketing, a product is anything that can be offered to a market that might satisfy a want or need. It is of two types: Tangible (physical) and Intangible (non-physical). Since services have been at the forefront of all modern marketing strategies, some intangibility has become essential part of marketing offers. It is therefore the complete bundle of benefits or satisfactions that buyers perceive they will obtain if they purchase the product. It is the sum of all physical, psychological, symbolic, and service attributes, not just the physical merchandise. All products offered in a market can be placed between Tangible (Pure Product) and Intangible (Pure Service) spectrum.

A product is similar to goods. In accounting, goods are physical objects that are available in the marketplace. This differentiates them from a service, which is a non-material product. The term goods is used primarily by those that wish to abstract from the details of a given product. As such it is useful in accounting and economic models. The term product is used primarily by those that wish to examine the details and richness of a specific market offering. As such it is useful to marketers, managers, and quality control specialists.

A service is a non-material or intangible product - such as professional consultancy, serving, or an entertainment experience.

Coke Product

The Coca-Cola formula is The Coca-Cola Company's secret recipe for Coca-Cola. As a publicity marketing strategy started by Robert W. Woodruff, the company presents the formula as one of

the most closely held trade secrets ever and only a few employees know or have access to. This Coca-Cola formula appears to be the original formula to Coca-Cola. It is from the book For God, Country and Coca-Cola.

The company Coca-cola is a multinational and it is not limited to one product. Through the years they have invented and introduced many products than their main cola drinks. The list of Cocacola brands are as follows:

Appletiser Aquarius BPM Energy Barq's Beat soda Beverly Cannings Cheers Ciel Coca-Cola Black Cherry Vanilla Coca-Cola Blak Coca-Cola C2 Coca-Cola Cherry Coca-Cola Citra Coca-Cola M5 Coca-Cola Zero Coca-Cola Coca-Cola with Lemon Coca-Cola with Lime Dasani Delaware Punch Diet Coke Fanta Fanta Citrus Fioravanti Fresca Frisco Fruitopia

Lemon & Paeroa Lift Lift plus Lilt Manzana Lift Mare Rosso Mello Yello Mezzo Mix Minute Maid Nestea New Coke Nordic Mist OK Soda Pibb Xtra Powerade Qoo Raspberry Coke Relentless Sarsi Senzao Simply Orange Smart Sparkle Sprite Sprite Ice Sprite Remix Sprite Zero Surge Swerve Tab

Frutonic Full Throttle Georgia Hi-C Hit Kia-Ora Kinley

Tab Clear Tab Energy Tab X-Tra Tiky Vault

Pepsi Product

The Pepsi-Cola drink contains basic ingredients found in most other similar drinks including carbonated water, high fructose corn syrup, sugar, colorings, phosphoric acid, caffeine, citric acid and natural flavors. The caffeine free Pepsi-Cola contains the same ingredients but no caffeine. Some of the different and varied brands of Pepsi are as follows:

All Sport Aquafina Caffeine-Free Pepsi Crystal Pepsi Diet Pepsi Gatorade Izze Jazz Josta Kas Manzanita Sol Mirinda Mountain Dew Mountain Dew AMP

Pepsi Pepsi Blue Pepsi Cappuccino Pepsi Max Pepsi ONE Pepsi Samba Pepsi Tarik Pepsi Twist Propel Fitness Water Sierra Mist Slice SoBe Storm Teem

Mountain Dew LiveWire Mountain Dew MDX Mug Root Beer

Tropicana Products Tropicana Twister

Coke v/s Pepsi-Product

As seen above both the companies Coke and Pepsi have a number of products. Many of these products are innovations but there are also many products which are brought out just as a competitive product for the other companies. Some of these products that are brought in the market by both the companies to compete against each other are as follows:

Coke

Pepsi

The main dark cola drink of the company which started the rivalry between these companies.

Pepsi version of dark cola which is the major primary competitor to Coke.

Full Throttle is an energy drink brand produced by The Coca-Cola Company. It debuted in late 2004 in North America.

AMP is an energy drink produced and distributed by PepsiCo under the Mountain Dew soft drink brand.

Vault is a carbonated beverage that was released by The Coca-Cola Company in June 2005.

Mountain Dew MDX is an energy drink manufactured and distributed by PepsiCo under the Mountain Dew brand. It was introduced in 2005.

Powerade is a sports drink by The CocaCola Company and currently number two in the sports drink market worldwide.

Gatorade is a non-carbonated sports drink marketed by Quaker Oats Company, a division of PepsiCo. Originally made for athletes, it is now often consumed as a snack beverage.

Sprite is a clear, lemon-lime flavored, noncaffeinated soft drink, produced by the Coca-Cola Company. It was introduced to the United States in 1961.

7 Up is a brand of a lemon-lime flavored soft drink.

Tropicana Products is an American Minute Maid is a product line of beverages, company based in Bradenton, Florida, usually associated with orange juice, but USA, which is one of the world's largest now extends to soft drinks of many kinds. producers and marketers of orange juice. It The Minute Maid company is now owned has been owned by PepsiCo, Inc. since by Coca-Cola, and is the world's largest 1998. marketer of fruit juices and drinks. It is headquartered in Houston, Texas.

Nestea is a brand of iced tea manufactured and distributed by the Nestle company's beverage department in the United States, and by Coca-Cola in several European countries, Brazil and Venezuela.

Lipton Original Iced Tea is a ready-todrink iced tea brand sold by Lipton through a worldwide partnership with Pepsi.

Barq's is a brand of root beer notable for being the only major North American root beer to contain caffeine. It has been bottled

Mug Root Beer is a brand name of root beer made by the Pepsi company.

since the start of the 20th century and is currently sold by the Coca-Cola Company.

Diet Coke or Diet Coca-Cola is a sugarfree soft drink produced and distributed by The Coca-Cola Company. It was introduced in the United States in July 1982.

Diet Pepsi is a low-calorie carbonated cola. It was introduced in 1964 as a variant of Pepsi-Cola with no sugar.

Kinley is a brand of still or carbonated water owned by The Coca-Cola Company.

Aquafina is a non-carbonated bottled water produced by PepsiCo.

Aquarius is a mineral sports drink manufactured by The Coca-Cola Company. It was first introduced in 1983.

All Sport was a sports drink. It is produced by PepsiCo.

Fanta is a soft drink brand owned by The Coca-Cola Company. It is produced and distributed by The Coca-Cola Company's bottlers.

Mirinda is a brand of soft drink. Mirinda is owned by PepsiCo.

Sprite Ice was the first flavor extension for The Coca-Cola Company's Sprite brand soft drink.

Pepsi Blue is a soft drink made by PepsiCo and launched in mid-2002.

Coca-Cola Blak is a coffee-flavoured soft drink introduced by Coca-Cola in 2006.

Pepsi Cappuccino is a cappuccino-flavored carbonated soft drink produced by Pepsico.

Maaza is a Coca-Cola fruit drink brand marketed in India and Bangladesh.

Slice is a line of fruit-flavored soft drinks manufactured by PepsiCo and introduced in 1984.

Limca is a lemon and lime flavoured carbonated soft drink made in India by Coca-cola.

Teem was a lemon-lime-flavored soft drink produced by The Pepsi-Cola Company.

Price
In economics and business, the price is the assigned numerical monetary value of a good, service or asset. Price is also central to marketing where it is one of the four variables in the marketing mix that business people use to develop a marketing plan. Pricing is a big part of the marketing mix. Choosing the right price and the right pricing strategy is crucial to the marketing process. The price of the product is not something that is fixed. On the other hand the price of the product depends on many other factors. Some times the price of the product has got nothing to do with the actual product itself. The price may act as a way to attract target customers. The price of the product is decided keeping many things in mind. These things include factors like cost incurred on the product, target market, competitors, consumer buying capacity etc.

Coke - Price

Coke was a company ruling the markets before Pepsi entered. Earlier the price of coke was cost based i.e. it was decided on the cost which was spent on making the product plus the profit and other expenses. But after the emergence of other companies especially the likes of Pepsi, Coca-cola started with a pricing strategy based on the basis of competition. Nowadays more expenses are spent on advertising my soft-drink companies rather than on manufacturing. Few year before Coke has brought in a revolution especially in Indian markets with the Rs. 5 pricing strategy which was very famous. It was the first company to introduce the small bottle of Coke for just Re.5. This campaign was very successful especially with the price conscious Indian consumers. Even today most prices of Coke are decided on the basis of the competition in the market.

Pepsi Price

Pepsi again decides it price on the basis of competition. The best think about the company Pepsi is that it is very flexible and it can come down with the price very quickly. The company is renowned to bring the price down even up to half if needed. But this risk taking attitude has also earned Pepsi losses. Though lowering the price would attract the customers but it would not help them cover up the cost incurred in production hence causing them losses. This was the situation earlier but now Pepsi is a full-fledged and growing company. It has covered all its losses and is now growing at a rapid rate.

Place

Place is a term that has a variety of meanings in a dictionary sense, but which is principally used in a geographic sense as a noun to denote location, though in a sense of a location identified with that which is located there.

In marketing, place refers to one of the 4 P's, defined as "the market place". It can mean a geographic location, an industry, a group of people (a segment) to whom a company wants to sell its products or services, such as young professional women (e.g. for selling cosmetics) or middle-aged family men (e.g. for selling family cars).

Coke - Place

Coke is a multinational company and it has its market around the entire world. This can be said just by the first page on its site which asks people to select the place of their choice. The website looks something like this:

Pepsi Place

Pepsi again has spread worldwide. Pepsi when entering a new market does not go in alone but it looks for partners and mergers. Till now Pepsi has collaborated with companies like Quaker Oats, Frito-lays, Lipton, Starbucks, etc.

Pepsi like Coke has spread all over the world. It is because of this worldwide spread that now it is coming up with Advertisements which can be broadcasted in the different nations in the world. The recent example with would be the Pepsi advertisements having David Beckham as it brand ambassador.

Promotion
Promotion is one of the four aspects of marketing. Promotion comprises four subcategories: Advertising Personal selling Sales promotion Publicity and public relations

The specification of these four variables creates a promotional mix or promotional plan. A promotional mix specifies how much attention to pay to each of the four subcategories, and how much money to budget for each. A promotional plan can have a wide range of objectives, including: sales increases, new product acceptance, creation of brand equity, positioning, competitive retaliations, or creation of a corporate image.

Both the companies Pepsi and coke are famous for their promotions. The rivalry was first started when Pepsi started with its blind taste tests known as the Pepsi Challenge. The challenge is designed to be a direct response to critics who allege that Coca-Cola and Pepsi-Cola are identical drinks, with no meaningful differences. The challenge takes the form of a taste test. At malls, shopping centers and other public locations, a Pepsi representative sets up a table with two blank cups, one containing Pepsi and one with Coke. Shoppers are encouraged to taste both colas, and then select which drink they prefer. Then the representative reveals the two bottles so the taster can see whether they preferred Coke or Pepsi. If Pepsi is revealed, the shopper is given a small

prize. The implication is that Pepsi tastes better than Coke, and thus consumers should purchase Pepsi. In blind taste tests, more consumers prefer the taste of Pepsi to that of Coca-Cola. Because Coke was the historical leader, more people expected that they'd prefer and select Coke. Their surprise at picking Pepsi in the blind taste test (products were served in unmarked cups) helped change their minds about which product they prefer. Capturing this on film, Pepsi turned this into a memorable TV campaign that lasted many years. Also ad-campaigns are put up on the television by both the players. The following statistic just tells of much of share of ads on TV are captured by these players.

Infact in the next graph you can see how many programs are sponsored by cola companies and the leader among them is Pepsi. Mainly Pepsi is the company sponsoring most cricket telecasts happening in India and spends most of its revenue in that field.

Nowadays both Coke and Pepsi are going in for Brand Ambassadors to promote their product. These brand ambassadors are famous people who usually people idolize and people can relate to them. The following pictures do not need any explanation as people are familiar with the celebrities and can thus quickly identify with the product.

A list of Celebrities that are brand ambassadors for the cola companies are as follows. These celebrities are not only asked to work in the advertisements but they also have to use the product promoted by them and they should not use the companies rivals proucts.

CELEBRITY ENDORSMENT IN 2008-09

PEPSI Ram Charan Teja Ranbeer Vijender(Boxer) Katrina Kaif Rani Kareena Kapoor M.S.Dhoni Shahrukh Khan

COCA-COLA Amir Khan Hrithik Roshan Ganesh Gautam Gambhir Virender Sehwag Vijay

Conclusion
Coca- cola company is a Beverage industry. Established in 1882 .It Headquarter is in Atlanta, U.S.A. Pepsi is a Beverage and snacks industry Established in 1903. It Headquarter in Newyork and U.S.A.

Pepsi and Coke are competitor and both are produce a competitive product like Coke - Pepsi Sprite 7UP, Minute maid Tropicana, Fanta Mirinda. Diet Coke Diet Pepsi , Kinley Aquafina etc.

Both company are decide his price on the competition bases but price of pepsi is very flexible Pepsi come down price very quickly. Pepsi and Coke spread worldwide. Pepsi and coke doing very much advertisement. But pepsi is doing more advertisement in comparison to coke .both company have film star , cricketer for advertisement.