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"elow the line marketing activities# fast distrib tion s$stem and more sophisticated cons mer research.rom thinking along the lines of merel$ e'porting spares and raw material the e'porters and now looking towards finished prod cts. . The h$per activit$ in the market place is seeing a boom in s pport services# with a n mber of independent agencies m shrooming to provide them. David Packard of Hewlett Packed. %n the media front# satellite proliferation has trigged of a new genre of media research# which is highl$ viewer ship based. The Indian market is getting to be cons mer!led. ( m ltiplier to this is the *oint vent re companies looking at becoming e'port man fact ring bases. (nd with brand lo$alt$ becoming a thing of the past# given the choice available to the cons mer p ll. This is the reason behind the nprecedented boom in advertising. The creative leap is increasingl$ being governed b$ market realities and cons mer research. &o!related to the market book# services are well on their to becoming a ma*or ind str$.PRE*ACE Marketing is too important to be left to the marketing department. This along with the loosening of reg lations is seeing e'port gaining gro nd. )ver$where# there is a new thr st on marketing and advertising. - . The cons mer co ld be a p rchaser of end prod cts# or a financial investor# or even an ind strial p rchaser. &ons mer satisfaction has become research worthil$ M ltinationals are po ring in precisel$ beca se of this new chapter in Indian cons merism. (nd &lint interface is no longer limited to the &lint service people# b t incl ding all specialists in agencies. The entr$ m ltinational prod cts in to the co ntr$ are seeing more emphasis aid world! class + alit$. The dilemma that all marketers are facing is getting the ma'im m done in the minim m possible time.




It covers an e'tensive s rve$ and depicts all graphs# fact and fig res of two companies. 3tr ct re + estionnaire was se to collect primar$ data 8 i . It begins with the introd ction of soft drink ind str$ and introd ction of these two companies of soft drink ind str$. 3ample of to brands were selected on the basis of there ses and noticeciabilit$. It covers some of the ma*or strategies adopted b$ Pepsi and &oca!&ola like their pricing polic$# sales promotion and advertising polic$# distrib tion polic$ etc. ex e .ECEC&TIVE S&MMARY This pro*ect is an e'tensive research on the marketing strategies of the two &ola giants Pepsi and &oca &ola. %ne of the selected brands is 4%5 brand in their respective prod ct categories the other one brand is close competitor of the 4o 5 brands. The pro*ect has been made interesting with the incl sion of the topics# which covers the -P1s of marketing. Pepsi holds the ma*or market share followed b$ &oke. Data was collected from secondar$ as well as primar$ so rces. 2hatever strateg$ is followed b$ one compan$# it is copied b$ the other. Total sample of si6e of 277 respondents selected on the basic of convenience was s rve$ed which incl de cons mers. The$ have a c t throat competition between themselves. The ma*or pla$ers in the soft drink ind str$ in India are &oke and Pepsi.

INTRO#&CTION: In the modern rban c lt re cons mption of soft drinks partic larl$ among $o nger generation has become ver$ pop lar. It is e'pected that with the sort of mass advertising# reaching almost the entire co ntr$ and offering vario s varieties ann al demand for the prod ct is e'pected to rise sharpl$ in the times to come. Mass media# partic larl$ the emergence of television# has contrib te to a large e'tent of the ever growing demand for soft drinks the attractive *ingles and sport make the large a dience remember this prod ct at all times. children of all ages and gro ps are especiall$ attracted b$ the mere mention of the word soft drinks. 3oft drinks in vario s flavors and tastes are widel$ patroni6ed b$ rbane pop lation at vario s occasions like dinner parties# marriages# social get together# birthda$ calibration etc. In an$ marketing sit ation# the behavioral 9 environmental variables relating to cons mers# competition and environment are constantl$ infl '. The so!called competition for this prod ct in the market is from different other brands. The competitors in a : . 2ith the growing pop larit$ of soft drinks# the technolog$ of its prod ction# preservation# transportation and or marketing in the recent $ears has witnessed phenomenal changes.

The Indian cons mer the real 2ar to + ench his thirst has * st beg n. The onl$ ro te open to him for achieving this is the manip lation of his marketing tactics. The marketing man of the firm has to meet all these mane ver and care of competitive position of his firm and his brand in the market. In toda$1s highl$ competitive market place# three pla$ers have dominated the ind str$. 57 . The ma$ introd ce or initiate an aggressive promotion campaign or anno nce a price red ction. based &adb r$ 3chweppes.>.given ind str$ ma$ be making man$ tactical mane vers in market all the time. ltimatel$ these are onl$ one person who will determine their fort nes. The 4ew <ork based Pepsi &ompan$ Inc. The (tlanta based coca! cola and =. Thro gh the globe# these ma*or pla$ers have been battling it o t for a bigger ch nk of the ever ?growing soft drink market. 3oft drink ind str$ is on ama6ing growth. 4ow this battle has been evolved p to India too with the arrival of these three giants.


C2D The (tlanta based coca cola co. "ehind the h$pe# in an effort invisible to cons mer Pepsi p mps in @s 3777 crores C5::-D to add m scle to its infrastr ct re in bottling and distrib tion. Pemberton A @obinson laid the first fo ndation of this beverage when an average nine drinks per da$ to begin with# pping vol mes as sales grew. "$ the 5:. India is now the part of cold drink war. "$ b $ing %ver local competition# the two (merican &ola giants have cleared p the arena and are packing all their power behind b ilding the Indian franchisee of their globe girdling brands. 4ow this battle has beg n in India too. 4ow# the soft drink ind str$ has been dominated b$ three ma*or pla$er ? C5D The 4ew <ork based Pepsi co. It is estimated that this drink is served more than one tho sand million times in a da$. Eone are da$s of @amesh &ha han# India1s one time cola king and his bo ts of pistol shooting. Inc. )+ all$ oblivio s to the historic val e of his actions was . "oth pla$ers seen an enormo s potential in his co ntr$ where swigging a carbonated beverage is still considered a treat# virt all$ a l ' r$. &onse+ entl$# b$ world standards India1s per capita cons mption of cold drinks as going b$ s rve$ res lts is rock bottom# less than over 4eighbors Pakistan A "angladesh# where it is fo r times as m ch.rank I'. % t for a bigger ch nk of the ever!growing cold drink market. The h ge amo nt invested in fract re has never been seen before. @obinson# his partner and book keeper. C3D The nited >ingdom based &adb r$ 3chweppes.It all began in 588/# when a tree legged brass kettle in Hohn 3t$th pemberton1s back$ard in (tlanta was brewing the first P of marketing legeent =naware the pharmacist has given birth to a caramel colored s$r p# which is now the chief ingredient of the world1s favorite drink. This is apart from mone$ 52 . 3oon were born other non! cola variants of this prod ct like orange A Bemon. In 58:-# this beverage got into bottle# co rtes$ a cand$ merchant from Mississippi. The s$r p combined with carbonated the soft drink market. battles it o t for# as the Fordon goes a bigger share of throat. Tho gh o t the glove these ma*or pla$ers have been battling it.71s &olas was a dail$ cons mption item# stored in ho se hold fridges. )'pect now to hear the boon of cannons when the &oca &ola A Pepsi co.

)at movies# sleep movies.ood. )at .that compan$1s franchised bottles spend in pgrading their plants all this has contrib ted to s bstantial gains in the market. &adb r$ 3chweppes is hoping that cr sh is going well and well not s ffer the same fate as the @s.&3"I o wholl$ owned s bsidiar$ of the Bondon based I /. %n the other side of coin Pepsi has introd ced (MIT("H "(&HH(4 for capt ring the lemon market thro gh MI@I4D( ? Bemon with “6or ka *hatka dhere se lageG. )at cricket# sleep cricket. Drink onl$ coca cola. &3"I is now with orange Ccr shD# and 3chweppes soda in the market. crore &adb r$ India1s apple drink (pella. This image t rnaro nd is no small achievements# considering that since it was established in 5:8:# taking the hardship ro te prior to liberali6ation and weighed down b$ e'port commitments. Bike Pepsi# coke is picking p e+ it$ in its bottles to g arantee their financial s pport. 2hile coke e'ec tive scr ff at Pepsi1s claims as well as targets# ind str$ observers are of the view that Pepsi has definitel$ stolen a march over its competitor coke. with la nch of the carbonated organi6e drink &r sh# few $ear ago in "anaras . 4ow# at present as there are three ma*or pla$ers coke# Pepsi and &adb r$ and there is stiff competition between first two# both Pepsi and coke have started# sponsoring local events and staging fre+ ent cons mer promotion campaigns. (part from n mbers# Pepsi has made + alitative gains. Drink onl$ coca cola. (s the mega event of this cent r$ has started# and the marketers are sing this event ? world c p football# cricket events and man$ more other events. In colas# Pepsi is alread$ market leader and in certain cities like "anaras# Pepsi o tlets are on one side A all the other colas p t together on the other. " t no do bt1 that => based &adb r$ is also recogni6ing its presence. 53 .# the first in a series of a la nches # &adb r$ 3chweppes beverage India C&3"ID H(3 PB(44)DH! The world third largest soft drink marketers all over the co ntr$. 50. The foremost is its image.2billion. Drink onl$ coca cola. 3o there is a real cr sh in the soft drink market. one side coke is tr$ing to increase its pop larit$ thro gh..ood# en*o$ .

J. The s ccess of soft drink ind str$ depends pon . VISI ILITY Kisibilit$ is the presence felt# if an$ o tlet has a partic lar brand of soft drink sa$! Pepsi cola and this brand is not displa$ed in the o tlet# then its availabilit$ is of no se.7J is followed b$ Bemon segment with 2. to the o tlets.(s orange drinks are the smallest of non!cola categories that is @s.  (vailabilit$  Kisibilit$  &ooling  @ange AVAILA ILITY (vailabilit$ means the presence of a partic lar brand at an$ o*or factors vi6. If a prod ct is now available at an$ o tlet and the competitor brand is available# the cons mer will go for it beca se generall$ the cons mption of an$ soft drink is an imp lse decision and not predetermined one. The soft drink m st be shown off properl$ and attractivel$ so as to catch the attention of the cons mer immediatel$ Pepsi achieves visibilit$ b$ providing glow signboards# hoarding# calendars etc. 5577 crore markets with 57J market share and cola heaving . It also incl des vario s stands to displa$ Pepsi and other flavors of the compan$. COOLIN% 5- .

RAN%E This is the last b t not the least factor# which affects the sale of the prod cts of a partic lar compan$. 5. . @ange availabilit$ means the availabilit$ of all flavors in all si6es.(s the soft drinks are cons med chilled so cooling them pla$s a vital role in boosting p the sales. The brand# which is available chilled# gets more sales then the one which is not# even if it is more preferred one.

@ed has been a distinctive color associated with the 4o. He p rchases it from the Dr. Pemberton1s Partner and bookkeeper# Mr.COLA Fon 3t$th Pemberton first introd ced the refreshing taste of &oca!&ola in (tlanta# Eeorgia it was Ma$ 58/5 when the pharmacist concocted caramel colored s$r p in three? legged brass kettle in his back$ard.rank @obinson# s ggested the name and penned as “&oca!&olaG in the worldwide toda$.Pemberton famil$ for I 2377.)ISTORY O* COCA. Dr.5 soft drink brand ever since. Pemberton b siness.:/ on advertising# b$ 58:5# (tlanta chemist as a E.7 and spent I 03. . Dr. . @obert 2.$ear his merchandising flair helped to e'pand the cons mption of &oca!&ola to over I2. gallons of s$r p# shipped in bright @ed wooden kegs. 2hether b$ design or accident# carbonated water was teamed with the new s$r p# prod cing a drink that was proclaimed “Delicio s and @efreshingG. woodr ff become the president of the &oca!&ola compan$ in 5:23 and his more than si' decades of leadership took the b siness of commercial s ccess making grossed I . He first distrib ted the new prod ct b$ carr$ing &oca!&ola in a * g coin en*o$s in a glass of &oca!&ola at the soda fo ntain.or his efforts# Dr. Pemberton1s sold 2. 2ith in .&anler had ac+ ired complete ownership of the &oca!&ola ni+ e flowing script that is still famo s 5/ . million.

Thomas and Foseph ". 3ome were open onl$ d ring hot!weather months when demand was high.&oca!&ola an instit tion the world over. B pton# soon *oined their vent re. He responded to this demand began offering bottle &oca!&ola sing s$r p shipped from (tlanta# d ring a hot s mmer in 58:-. 5:77!5:7: L @apid growth the three pioneer bottlers divided the co ntr$ into territories and sold bottling rights to local entreprene rs.L ( modest start for a bold idea In a cand$ store in Kicksb rg# Mississippi# brisk sales of the new fo ntain beverage called &oca!&ola impressed the storeMs owner# Foseph (. "$ 5:7:# nearl$ -77 &oca!&ola bottling plants were operating# most of them famil$!owned b sinesses. 50 . He began bottling &oca!&ola to sell# sing a common glass bottle called a H tchinson. 2hitehead obtained e'cl sive rights to bottle &oca!&ola across most of the =nited 3tates Cspecificall$ e'cl ding Kicksb rgD !! for the s m of one dollar. 58:: L The first bottling agreement Two $o ng attorne$s from &hattanooga# Tennessee believed the$ co ld b ild a b siness aro nd bottling &oca!&ola. "iedenharn sent a case to (sa Eriggs &andler# who owned the &ompan$. In a meeting with &andler# "en*amin . "iedenharn of Mississippi was looking for awr$ to serve refreshing beverages. &andler thanked him b t took no action. Their efforts were boosted b$ ma*or progress in bottling technolog$# which improved efficienc$ and prod ct + alit$. 58:. ( third &hattanooga law$er# Fohn T. %ne of his nephews alread$ had rged that &oca!&ola be bottled# b t &andler foc sed on fo ntain sales. "iedenharn. &oca!&ola begins as a never tonic# b t cand$ merchant Foseph (..

5:-7s L Post!war growth D ring the war# /. ( few $ears later# open!top metal coolers became the forer nners of a tomated vending machines.rance# E atemala# Hond ras# Me'ico# "elgi m# Ital$# Per # 3pain# ( stralia and 3o th (frica. The 5:87s bro ght diet &okeN and &herr$ &okeN# followed b$ P%2)@(D)N and D(3(4IN in the 5::7s. "$ the time 2orld 2ar II began# &oca! &ola was being bottled in -.3.rescaN and Ta"N *oined brand &oca!&ola in the 5:/7s. Toda$ h ndreds of other brands are offered to meet cons mer preferences in local markets aro nd the world.5:27s L "ottling overtakes fo ntain sales as the 5:27s dawned# more than 5#777 &oca!&ola bottlers were operating in the =. PibbN and Mello <elloN was added in the 5:07s.bottling plants were set p aro nd the world to s ppl$ the troops.ollowing .7s# 3priteN# Min te MaidN# . Mr. 5:27s and 37s L International e'pansion Bed b$ longtime &ompan$ leader @obert 2. Plants were opened in . Man$ of these war!time plants were later converted to civilian se# permanentl$ enlarging the bottling s$stem and accelerating the growth of the &ompan$Ms worldwide b siness.3. "$ the end of the 5:27s# bottle sales of &oca!&ola e'ceeded fo ntain sales. Their ideas and 6eal f eled stead$ growth. 58 . 5:/7s L 4ew brands introd ced . 2oodr ff# chief e'ec tive officer and chairman of the "oard# the &ompan$ began a ma*or p sh to establish bottling operations o tside the =. This followed an rgent re+ est for bottling e+ ipment and materials from Eeneral )isenhowerMs base in 4orth (frica.antaN in the 5:. 3i'!bottle cartons were a h ge hit after their 5:23 introd ntries.

5:07s and 87s L &onsolidation to serve c stomers (s technolog$ led to a global econom$# the retailers who sold &oca!&ola merged and evolved into international mega!chains. 5: . 5::7s L 4ew and growing markets Political and economic changes opened vast markets that were closed or nderdeveloped for decades. In response# man$ small and medi m!si6e bottlers consolidated to better serve giant international c stomers. (fter the fall of the "erlin 2all# the &ompan$ invested heavil$ to b ild plants in )astern ) rope. (s was tr e a cent r$ ago# strong locall$ based relationships between &oca!&ola bottlers# c stomers and comm nities are the fo ndation on which the entire b siness grows. 25st &ent r$ L The &oca!&ola bottling s$stem grew p with roots deepl$ planted in local comm nities. (nd as the cent r$ closed# more than I5. billion was committed to new bottling facilities in (frica. 3 ch c stomers re+ ired a new approach. The &ompan$ enco raged and invested in a n mber of bottler consolidations to ass re that its largest bottling partners wo ld have capacit$ to lead the s$stem in working with global retailers. This heritage serves the &ompan$ well toda$ as people seek brands that honor local identit$ and the distinctiveness of local markets..

& with a capital of 3. 4a*ibabad took the complete possession of this plant# land# machiner$# A intellect als on .7 =. (ggarwal.&. Hind stan &oca!&ola bottling C4!2D Pvt. 27 .ebr ar$ 5-1 5::8 and since then H.&.COCA JCOLA COMPANY PRO*ILE >eeping in view of tapping the Indian soft drink market and also developing soft drinks as a drinking prod ct among Indians.&# looking after all its affairs nder compan$ owned bottling plant to establish integrated marketing s$stem in the area.I each b$ virt e of sello t decision of the passed managing director 3h. Btd. 3.& A ".3. &. The &oca!&ola in India has set p an independent organi6ations which is H.&.

3prite is now the fastest growing ma*or soft drink in =.anta H The name “fanta “ was first registered as a trademark in Eerman$ in 5:-5 #when it was sed for a few $ear for a soft drink created from available materials and flavors . It is now the trademark name for a line of flavored drinks aro nd the world.3 and the world1s most pop lar lemon!lime soft drink. recogni6ed and 3priteH In 5:/5# a citr s!flavored drink made its =.3 deb t# sing “3prite "o$ “as inspiration for its name. Diet coke + ickl$ becomes the n mber ? one selling low ?calorie soft drink in the world. 4ot to mention the best selling soft drink in the world. 25 .. in 4aples# Ital$# when it was sed for theHG fanta “orange drink we know toda$. The name was then revived in 5:.CORE RAN#S: &oca!&olaH Developed in a brass pot in 588/# coca!cola is the most admired trademark aro nd the globe. This elf with silver hair and a big smile was sed in 5:-7s advertising for &oca!&ola. . Diet cokeH The e'tension of the coca!cola name began in 5:82 with the introd ction of diet coke Calso called coca!cola light in some co ntriesD.

The sing is a do ble sphere constr cted from more then -/ tone of steel# more :-7meter of neon t bing# and more then# 80: light b lbs.COLA 5. The o ter shape feat res the coca!cola logo and conto r bottle# while the inner sphere portra$s a comic scene with twinkling planets and stars. The world1s largest spherical coca!cola sign is in 4ago$a# Fapan a top the dial ? 4ago$a b ilding in front of the 4ago$a railwa$ station. The first o t door paint sign advertising coca!cola still e'ists.*A &LO&S *ACTS A O&T COCA. It was painted in 58:. %ne of the world1s largest signs for coca!cola is located on a hill called “)BH(&H(G in (merica# &hile. 3. 22 .in &artersville# Eeorgia. 2. It is -77 feet wide and 535 feet high and is made from 07#777# 2/ o nce bottles. -. &oca!cola is one of the world1s most recogni6able trademarks recogni6ed in co ntries that acco nt for :8 percent of the world1s pop lation.

million gallons per second instead of water# the falls wo ld flow for abo t a da$ and a half 38 ho rs and -/ min tes. 8. The largest representation of the world1s best known package 577 foot tall glass conto r bottle is located at world of coca!cola# B(3 K)E(3 23 . /.. If all the coca!cola ever prod ced were in 8! o nce bottles. (nd these bottles were distrib ted to each person in the world.. There wo ld be /08 bottles or over -2 gallons for each person. If all the coca!cola ever prod ced were flowing over 4iagara fall at its normal rate of 57. 0. If all the coca!cola ever prod ced were in 8 ? o nce bottles# placed side b$ side and end to end to from a lane highwa$# it wo ld wrap aro nd the earth 82 times.

)ISTORY IN IN#IA Coca.cola 78 I857a &oca!&ola# the corporation no rishing the global comm nit$ with the world1s largest selling soft drink concentrates since 588/# ret rned to India in 5::3 after a 5/ $ear hiat s# giving new th mbs p to the Indian soft drink market. In the same $ear# the &ompan$ took over ownership of the nation1s top soft!drink brand and bottling network. It1s no wondering o r brands ass med an iconic stat s in minds of world1s cons mers. 2- .

It has also been instr mental in giving an e'ponential growth to the co ntr$1s *ob listings. .A )ealth4 %2owth to the I857a8 Eco8om4 )ver since# &oca!&ola India has made significant investments to b ild and contin all$ consolidate its b siness in the co ntr$# incl ding new prod ction facilities# waste water treatment plants# distrib tion s$stems# and marketing channels. A P92e Comm7tme8t to the I857a8 Eco8om4 The &ompan$ has shaken p the Indian carbonated drinks market greatl$# giving cons mers the pleas re of world!class drinks to fill p their h$dration# refreshment# and n trition needs. &oca!&ola India is among the co ntr$1s top international investors# having invested more than =3I 5 billion in India in the first decade# and f rther pledged another =3I577 million in 2773 for its operations. C2eat78g E8o2mo9s Jo3 Oppo2t987t7es 2.

%n the distrib tion front# 57!tonne tr cks ? open ba$ three!wheelers that can navigate the narrow alle$wa$s of Indian cities ? constantl$ keep o r brands available in ever$ nook and corner of the co ntr$1s remotest areas. being owned b$ franchisees. These are onl$ some of the facts that speak abo t o r commitment to the growth of the Indian )conom$ 2/ . The Indian operations comprises of .#777 people in related ind stries thro gh its vast proc rement# s ppl$# and distrib tion s$stem. owned b$ the &ompan$# with another 2. That apart# a network of 25 contract packers man fact res a range of prod cts for the &ompan$.7 bottling operations# 2.2ith virt all$ all the goods and services re+ ired to prod ce and market &oca!&ola being made in India# the b siness s$stem of the &ompan$ directl$ emplo$s appro'imatel$ /#777 people# and indirectl$ creates emplo$ment for more than 52.

The coca!cola compan$ e'ists to benefits and refreshes ever$ one it to ches. The basic proposition of o r b siness is simple# solid and timeless. 2hen we bring refreshment# val e# *o$ and f n to o r stakeholders then we s ccessf ll$ n rt re and protect o r brand# partic larl$ coca!cola. That is the ke$ to f lfilling o r ltimate obligation to provide consistentl$ attractive to the owner so fo r b siness.

More then a billion times ever$ da$# thirst$ people aro nd the world reach for coca!cola prod cts for refreshment. The$ deserve the highest O alit$ ? ever$ time. % r promise to deliver that + alit$ is the most important promise we make. and it involves a world!wide # $et distinctivel$ local # network of bottling partner # s pplier # distrib tor and retailers whose s ccess is paramo nt to o r own. % r investment in local comm nities in over 277 co ntries totals billions of dollars in *obs# facilities# marketing# the p rchase of local good and services# and local b siness partnership. (lwa$s and ever$ where # we p rs e contin o s innovation in the prod cts we offer the processes we se to make them# the package we develop and the wa$ we bring them to market .






E%BD 3P%TH this orange carbonate soft drink was introd ced in the earl$ 5:.7c# and ac+ ired b$ the &oca!&ola compan$ in 5::3# its tang$ taste has been pop lar with Indian teenagers

BIM&(H It is thirst!+ enching beverage feat res a fresh and light lemon!lime taste and lighthearted attit de. The limca brand was introd ced in 5:05 and ac+ ired b$ the coca!cola compan$ in 5::3.


Its strong and fi66$ taste makes it ni+ e carbonated Indian cola. PEPSICO 37 .M((P(H Maa6a# la nched in 5:8. TH=MP3 =PH in 5::3# the &oca!&ola compan$ ac+ ired this brand# which was originall$ introd ced in 5:00.and ac+ ired b$ the coca!cola compan$ in 5::3# is a non carbonated mango soft drink with a rich# * ice A nat ral mango taste.

rito!Ba$ and Pepsi .7 co ntries across the globe. It has scores of big brands available in nearl$ 5.ood International.7. . It has a =.:2 billion and Pepsi is bottled in nearl$ 5:7 co ntries. Pepsi&o is a world leader in the food chain b siness.5. The gro p has established for itself once of the strongest brands in vario s segments of its operations. 35 .billion on reven es of I27.3. It consists of man$ companies amongst which the prominent once are Pepsi!&ola# .ort ne rank of . Take a *o rne$ thro gh o r past and see the ke$ milestones that define Pepsi&o. companies worldwide according to the n mber of emplo$ees hired.Pepsi&o is one the largest companies in the =.3.The compan$ profits for 5::0 were I2. It fig res amongst the largest 5. Pepsi&o is a world leader in convenient snacks# foods and beverages with reven es of more than I-3 billion and over 5:8#777 emplo$ees. The gro p is presentl$ into two of the most profitable and profitable and growing ind stries namel$# beverages and snack foods.

The move sho ld enhance both corporations abilit$ to prosper with their own f ll$ dedicated str ct re and management team. 32 .The beverages segment primaril$ markets its Pepsi# Diet Pepsi# Mo ntain Dew and other brands worldwide and 0!=P o tside the =. The resta rant segment earlier primaril$ consists of the operations of the worldwide Pi66a H t# Taco "ell and >. The compan$ vent red into resta rant b siness with Taco "ell# >. P. The international operations of this segment e'tend to the markets of Me'ico# the => and &anada.rito!Ba$ represents this segment of Pepsi&o. Pepsi compan$1s resta rant distrib tion operation# s pplies compan$ owned and franchise resta rants in the =.& chains. . These are positioned in close competition with &oca!&ola Inc. ( packaged goods compan$ comprised of Pepsi!&ola &ompan$ and . of =3(.3.3. In a *oint vent re with orient spra$ * ice prod cts Pepsi&o also man fact res and distrib tes fr it * ices. The segment is also in the bottling plants and distrib tion facilities and also distrib tes the read$ to drink tea prod cts of Bipton in 4orth (merica.rito!Ba$ will contin e to bear the Pepsi&o name.3.&# Pi66a H t ended last $ear when the$ were spanned off from the compan$. The snack food division man fact res and distrib tes and markets chips and other snacks worldwide. markets. ( point which is worth a mention is that &oca! &ola gets 87J of its profits for International operations while the same fig re for Pepsi&o stands at /J.

PEPSICO IN IN#IA Pepsi&o gained entr$ to India in 5:88 b$ creating a *oint vent re with the P n*ab government!owned P n*ab (gro Ind strial &orporation CP(I&D and Koltas India Bimited. These controversies are a reminder of QIndiaMs sometimes acrimonio s relationship with h ge m ltinational companies. Pepsi&o bo ght o t its partners and ended the *oint vent re in 5::-.Q In 2773# the &entre for 3cience and )nvironment C&3)D# a non!governmental organi6ation in 4ew Delhi# said aerated waters prod ced b$ soft drinks man fact rers in India# incl ding m ltinational giants Pepsi&o and The &oca!&ola &ompan$# contained 33 .Q Indeed# some arg e that Pepsi&o and The &oca!&ola &ompan$ have Qbeen ma*or targets in part beca se the$ are well!known foreign companies that draw plent$ of attention. This *oint vent re marketed and sold Behar Pepsi ntil 5::5# when the se of foreign brands was allowed. %thers claim that firstl$ Pepsi was banned from import in India# in 5:07# for having ref sed to release the list of its ingredients and in 5::3# the ban was lifted# with Pepsi arriving on the market shortl$ afterwards.

&3) fo nd that the Indian!prod ced PepsiMs soft drink prod cts had 3/ times the level of pesticide resid es permitted nder ) ropean =nion reg lations. The &oca!&ola &ompan$ and Pepsi&o angril$ denied allegations that their prod cts man fact red in India contained to'in levels far above the norms permitted in the developed world. &3) said it had tested the same prod cts in the =3 and fo nd no s ch resid es. In 277/# the &3) again fo nd that soda drinks# incl ding both Pepsi and &oca!&ola# had high levels of pesticides in their drinks. . &oca &olaMs 37 times. (s of 277.anta# Th mps =p# Bimca# and 3prite. In the Indian state of >erala# sale and prod ction of Pepsi!&ola# along with other soft drinks# was banned b$ the state government in 277/# b t this was reversed b$ the >erala High &o rt merel$ a month later. "oth Pepsi&o and The &oca!&ola &ompan$ maintain that their drinks are safe for cons mption and have p blished newspaper advertisements that sa$ pesticide levels in their prod cts are less than those in other foods s ch as tea# fr it and dair$ prod cts. Tested prod cts incl ded &oke# Pepsi# 0 =p# Miranda# .to'ins# incl ding lindane# DDT# malathion and chlorp$rifos R pesticides that can contrib te to cancer# a breakdown of the imm ne s$stem and ca se birth defects.# The &oca!&ola &ompan$ and Pepsi&o together hold :. Pepsi&o has also been acc sed b$ the P th sser$ pancha$at in the Palakkad district in >erala# India# of practicing Qwater pirac$Q d e to its role in e'ploitation of gro nd water reso rces res lting in scarcit$ of drinking water for the pancha$at residents# who have been press ring the government to close down the Pepsi&o nit in the village.ive other Indian states have anno nced partial bans on the drinks in schools# colleges and hospitals 3- .J market share of soft!drink sales in India. 4o law bans the presence of pesticides in drinks in India. &oke and Pepsi&o opposed the move# arg ing that lab tests arenMt reliable eno gh to detect min te traces of pesticides in comple' drinks. " t an Indian parliamentar$ committee# in 277-# backed p &3)Ms findings and a government!appointed committee# is now tr$ing to develop the worldMs first pesticides standards for soft drinks. However# this was the ) ropean standard for water# not for other drinks.

In addition to this# Pepsi&o1s . Pepsi&o1s b siness is based on its s stainabilit$ vision of making tomorrow better than toda$. . e=e2ages Pepsi&o India1s e'pansive portfolio incl des iconic refreshment beverages Pepsi# 0 =P# 4imboo6# Miranda and Mo ntain Dew# in addition to low calorie options s ch as Diet 3.rito Ba$ division has 3 state!of!the!art plants. To s pport its operations# Pepsi&o has -2 bottling plants in India# of which 53 are compan$ owned and 2: are franchisee owned. Pepsi&o1s commitment to living b$ this vision ever$ da$ is visible in its contrib tion to the co ntr$# cons mers and farmers.2a85 *acts Pepsi&o no rishes cons mers with a range of prod cts from tast$ treats to health$ eats that deliver en*o$ment# n trition# convenience as well as affordabilit$ The gro p has b ilt an e'pansive beverage and foods b siness.

The compan$1s high fiber breakfast cereal# O aker %ats# and low fat and roasted snack options enhance the healthf l choices available to cons mers. Bocal brands ? Behar )vervess 3oda# D kes Bemonade and Mangola add to the diverse range of brands *oo5s Pepsi&o1s food division# . It man fact res Ba$1s Potato &hips.Pepsi# h$drating and n tritional beverages s ch as (+ afina drinking water# isotonic sports drinks ! Eatorade# Tropicana577J fr it * ices# and * ice based Drinks ? Tropicana 4ectars# Tropicana Twister and 3lice. &heetos e'tr ded snacks# =ncle &hips and traditional snacks nder the > rk re and Behar brands.rito Ba$ prod cts are free of trans!fat and M3E.rito Ba$1s core prod cts# Ba$1s# > rk re# =ncle &hipps and &heetos are cooked in @ice "ran %il to 3/ .rito!Ba$# is the leader in the branded salt$ snack market and all . .

significantl$ red ce sat rated fats and all of its prod cts contain vol ntar$ n tritional labeling on their packets +&IC" *ACTS • • • Pepsi&o established itMs b siness operations in India in 5:8: Invested more than =3D 5 "illion since inception 2ell known and loved global brands that delight and no rish cons mers • • It provides direct and indirect emplo$ment to 5.7#777 people in India It has more than -2 bottling plants in India# of which 53 are compan$ owned A 2: franchisee owned 3 3tate!of!the!art food plants in P n*ab# Maharashtra and 2est "engal • 30 .

Diet Pepsi. "rand Pepsi is now the 2nd biggest brand in the co ntr$.PEPSI CO IN#IA: A *ORT&NE A-. the 577 per cent fr it * ice brand Tropicana in several variants and the world1s leading sports drink Eatorade. 3ince Pepsi1s entr$ into the Indian market in 5:8:# several brands from its portfolio have become established categor$ leaders. 0=P. two flavors of Mirinda ? %range and Bemon. variants of the fr it drink brand 3lice.COMPANY IN IN#IA Pepsi&o# which ranks among the world1s five largest food and beverage companies with 5/ brands# and its partners have invested more than =3I 077 million in India ! b ilding b sinesses# which toda$ provide direct or indirect emplo$ment to more than /7#777 people. Mo ntain Dew. packaged drinking water ! (+ afina. Pepsi&o1s portfolio of beverage brands in India incl des the flagship cola brand Pepsi. 38 .

" t what has made Pepsi the single largest selling soft drink brand in India is act all$ a form la concocted a cent r$ ago in a far awa$ continent. 3hah @ kh >han# 3achin Tend lkar# 3aif (li >han# (mitabh "achchan# >areena >apoor# Pri$anka &hopra# Kirender 3ehwag# M. 277 million people worldwide love it. RAN# A#VANTA%E • Pepsi has become a friend to the $o th and has led man$ $o th c lt res. Dhoni# Fohn (braham# @anbir 3: . Yeh )a7 Yo98g7sta8 Me27 Jaa8 RAN# )ISTORY Pepsi is a h ndred $ear old brand loved b$ over 277 million people worldwide. "e it parties# hango ts# or * st another da$ at home# a da$ is never complete witho t the fi66 of PepsiS • Pepsi# &ricket and "oll$wood have been *oined at the hip since the beginning. The largest single selling soft drink brand in India is the bi+ ito sMsocialiserMat ever$ occasion. It was this doctor1s potion that was to become Pepsi &ola in 58:8# and event all$# Pepsi in 5:73. Peps7 . • 588/# =nited 3tates of (merica. <o ngsters over the generations have grown p with Pepsi and share an emotional connect with it# nlike an$ other cola brand. 3.. • <o ngistan loves it. • Pepsi has alwa$s pla$ed on the front foot and since its inception has come o t with revol tionar$ concepts like Diet# 2B bottles# rec$clable plastic cola bottles and the enviable M$ &an. &aleb "rad man# the man with a plan# got on to form late a blockb ster digestive drink and decided to call it "rad1s drink.

-7 .>apoor and Deepika Pad kone are a few celebrities who will go an$ length for a chilled Pepsi. It is not * st a pack b t a st$le statement for toda$1s $o th. • The Pepsi M$ &an is ndo btedl$ the most pop lar cola pack of all times.

-5 .

ood Drink 5:78 Delicio s and Healthf l 5:5.PEPSI PRO#&CTS IN IN#IA SLO%ANS &SE# Y PEPSI COMPANY 58:8 "radMs Drink 5:73 )'hilarating# Invigorating# (ids Digestion 5:7/ %riginal P re .or (ll Thirsts ! PepsiH &ola 5:5: PepsiH &ola ! It makes $o 3cintillate 5:27 Drink PepsiH &ola ! It 2ill 3atisf$ <o -2 . .

.The Bight @efreshment @efreshing 2itho t .8 "e 3ociable# Have a Pepsi 5:/5 4ow ItMs Pepsi for Those 2ho Think <o ng 5:/3 &ome (liveS <o Mre in the Pepsi Eeneration 5:/0 Taste that "eats the %thers &old# Pepsi Po rs It %n.5:28 Peps <o =pS 5:2: HereMs HealthS 5:32 3parkling# Delicio s 5:33 ItMs the "est &ola Drink 5:3.Do ble 3i6e @efreshing and Healthf l 5:38 Foin the 3wing to Pepsi 5:3: Twice as M ch for a 4ickel 5:-3 "igger Drink# "etter Taste 5:-0 ItMs a Ereat (merican & stom 5:-: 2h$ Take Bess 2hen PepsiMs "estT 5:.illing 5:. 5:/: <o Mve got a Bot to Bive.7 More "o nce to the % nce 5:. PepsiMs got a Bot to Eive -3 .

eelingM .5:03 Foin the Pepsi People . ItMs the &ola 2777!2773H Q(a6adi dil kiQ CHindi! meaning Q. 4othing )lse is a Pepsi 5::0 Eeneration 4e't 5::8 3ame Ereat Taste 5::: The Fo$ of &ola 2777 The Fo$ of Pepsi 2773 Pepsi.The &hoice of a 4ew Eeneration 5:80 (mericaMs &hoice 5:8: ( Eeneration (head 5::2 Eotta Have It 5::3 "e <o ng# Have .H Q<eh P$as Hai "adiQ CHindi meaning QThis thirst is too m chQD CIndiaD -- .reedom of the HeartQDCIndiaD 2773H QItMs the &olaQ9QDare for MoreQ CPepsi &ommercialD 2773!277.ree 5:0/ Have a Pepsi Da$S 5:0: &atch That Pepsi 3pirit Take the Pepsi &hallenge 5:85 PepsiMs Eot <o r Taste for Bife 5:83 Pepsi 4owS 5:8. n# Drink Pepsi 5::.

!277/H Q(n ice cold Pepsi.or a n mber of da$s# The Hind stan Times and other newspapers of 4ew "anaras carried f ll page advertisement showing a big bo$ in niform with a soft!drink crown as the cap. It was an entirel$ new drink which fascinated people. ( -. ItMs better than se'SQ 277/!2770H Q2h$ <o DoggingM MeQ9QTaste the one thatMs forever $o ngQ 2770!2778H QMore Happ$Q9QTaste the once thatMs forever $o ngQ 2778H Q<eh Hai <o ngistan Meri FaanSQ Hindi ! meaning QThis is the <o ng era m$ dearQ CIndia and PakistanD 2778H QPepsi 3t ffQ 3 per "owl &ommercial 2778H QPepsi is U5Q TK commercial 2778H QPepsif$ karo gaiSQ &ommercial CHindi meaning Q2anna Pepsif$SQD 2778!277:H Q3omething for )ver$one.or the first time# a soft!drink was available from one corner of the co ntr$ to another. There was no indication of the prod ct.Q 277:!presentH Q@efresh ever$thingQ and Cd ring man$ commercialsD Q)ver$ Eeneration @efreshes the 2orldQ T)E RIVARLY E%INS: Co<e Comes to I857a &oca!&ola comes to India with fanfare in the fifties. . The person who bro ght &oca! &ola to India was the father of late 3ardar &haran*it 3ingh# 3ardar Mohan 3ingh. . It soon became the national drink. (fter a few da$s# &oke was introd ced. .277.

G &oca!&ola is# finall$# redoing the real thing to the replicate the s ccess that it1s arch!rival# Pepsi&o. . The compan$ tr cks s pplied coke to even the remotest village. The$ gave m ch importance to the distrib tive network. It po red in vast s ms to whip p its visibilit$ at the retail level# so that cons mers were greeted virt all$ at ever$ street corner b$ Pepsi1s bl e# red and white colors# beca se the$ have perception “the thing on displa$ 3ells more. &oke the arch rival tried to offering more &ola at a lower price. Then comes battles over the iss e of bottle si6e standardi6ation. -/ ..ew prod cts appears to be more similar than soft drinks# $et the &ola wars that mark the competition between &oke and Pepsi show how even organi6ations with highl$ similar prod ct can be differentiated b$ their b siness strategies. Pepsi which had some of its earl$ investment tied p in 2.G 3o he foc sed on $o ngsters in the societ$. The Eeneral bottle si6e freed has settled at 377 ml. The compan$ reali6ed that to become a mass cons mption prod ct# one has to go to the village.7 plastic bottle with caps good eno gh to keep them l$ing down and still preserve the fi66. Has achieved with its fast and f rio s marketing. 577 ml more than the pre M4& standard.practical man Mohan 3ingh reali6ed that to pop lari6e &oca!&ola# and make it a best seller it was necessar$ to “catch them $o ng.o ntain mi' dispensers# carr$ home bottles# even 5.7ml bottles# went the fo ntain wa$. . " t to win them# &oke is cop$ing Pepsi.

&oke was back with a bang after its e'it in 5:00.MAR"ETIN% STATE%IES O* CO"E AN# PEPSI a( PRO#&CT &oke was la nched in India in (gra# %ctober 2-# in M:3M# soon after its traditional all Indian la nch of its &ola. &oke was planning to la nch in ne't s mmer the orange drink# . -0 . (t the sparking new bottling plants at Hathra# near (gra.anta!with the clear lemon drink# sprite# following later in the $ear.

5 brand for s in India in the $ear 2777. PRO#&CT POSITIONIN% %ne important thing m st be noticed that Th mps =p is a strong brand in western and so thern India# while &oca &ola is strong in 4orthern and )astern India. &oca &ola India has positioned Th mps p as a beverage associated with advent re beca se of its strong taste and also making it compete with Pepsi as even Pepsi is associated with advent re# $o th. &ans# .e. and contin e to sell &oca &ola at the same rate.77 ml.&oke alread$ owns more brands than it will over need# since it has bo ght o t @amesh &ha han. (nal$sts feel that this strateg$ ma$ help &oke since it has 2 &ola brands in comparison to Pepsi which has * st one. PAC"A%IN% &oca!&ola India Bimited C&&IBD has bottled its &ola drink in different si6es and different packaging i.# 277 ml bottle# 377 ml. "ottle# 337 ml. Donald short &)%# &oca &ola India# said that# Q we will be absol tel$ comfortable if Th mps =p is 4o. "ottle fo ntain Pepsi# and bottles of 5 and 2 litre.anta# Eold 3pot# Maa6a# &itra# 3prite# "isleri &l b 3oda and Diet &oke. 2ith vol mes of Th mps =p being low in the capital# there are likel$ chances of &oca &ola slashing the prices of Th mps =p to @s. 2e will sell whatever cons mers want s toQ. Th mps =p acco nts for -7J of &oca &ola compan$Ms t rn over# followed b$ &oca &ola which has a 23J share and Bimca which acco nts for 50J of the t rn over of the compan$. &oke * st needs to * ggle these brands aro nd de'tro sl$ to meet its ob*ectives# to ens re that Pepsi does not gain market share in t Toda$# &okeMs prod ct line incl des# &oca!&ola# Th mps =p# . -8 . CTh mps p being the local drink# its share in the market is intact# forcing the compan$ to service the brand# as it did last $ear Mr. .

. than Pepsi. Pepsi also tried this b t was trapped b$ a series of competitive price increase and changes in bottle si6es b$ Parle. bottle# making it cheaper b$ @s. -7 respectivel$ Caccording to the c rrent s rve$D. &okeMs strateg$ at that time being able to e'pand the availabilit$ of soft drinks even in r ral India. . bottle in some parts of the co ntr$!incl ding (gra.7 ml. The prices of . @s.77 m# 5 litre. to @s. Dating back to V:3M# when Pepsi hiked the price of Pepsi ! &ola from @s.7 ml. 5. &oke penetrated the market with price of @s. 23 and @s. / per 2. (nd 2ltr being @s. 5 and . / to8 The 337 can was initiall$ available for @s. for a 377 ml. -: . &okeMs priorit$ being to first increase the n mber of drinks per drinker# and then the n mber of drinkers itself. The fi'ed cost str ct re in &arbonated 3oft Drinks Ind str$# and the intense competition make it ver$ diffic lt to change or alter the prices. &oke bottle is available for @s.3( PRICE The price being fi'ed b$ ind str$# leaving ver$ little role for the pla$ers to pla$ in the setting of the price# in t rn making it diffic lt for competitors to compete on the basis of price. The vario s costs inc rred b$ the individ al compan$Ms are almost navoidable. 58 per can. " t the prices of soft drinks have shot p since PepsiMs arrival and the c rrent prices are being mentioned as nder. 53 and now# since the price has gave p to @s.D & rrentl$ a 377 ml. These being the costs of concentrates# standard bottling operations# distrib tor and bottlers commissions# distrib tion e'penses and the promotional and advertising e'pendit re C(s far as &oke is concerned# it had to inc r a little more than Pepsi as Pepsi paved its wa$ to India in 5:8: while &oke made a come back in 5::3.

.ml ? Ca8 ??. c( PLACE &oke ma$ have gained an earl$ advantage over Pepsi since it took over Parle in Ca8 MRP '78 Rs.( E 0. .P27ce l7st Name Co<e Pe2 ottle Co<e Co<e Co<e #7et Co<e 'Ca8( Co<e 'Ca8( ottle S7Ke . &oke has f rther e'panded its distrib tion 'Plast7c / %lass( . &oke was had a better distrib tion network# owing to the wide network of Parle drinks all over India. Hence# it had read$ access to over 2# 77#777 retailer o tlets and /7 A-.7 . l7t2e ??. E?A ?D However# the trends ma$ have been in the earl$ M:7Ms# now the prices of Pepsi and &oke are the same making it diffic lt in f t re and present to compete on the basis of price.

However# . "ottlers of the 2 m ltinationals have strongl$ felt the need to remove these middlemen from the distrib tion s$stem# b t ver$ little s ccess has been achieved in doing so. The compan$ had decided to create a f nd to reimb rse performing bottlers for the e'tra costs inc rred on acco nt of the hike in prices of soft drink concentrates.&oke and its prod ct were available in over 2# . The 2 arch rivals have spent a lot on advertising and on promotional activities. (s of now# aro nd 577 agents are present in "ananas. &oke and Pepsi have devised strategies to get rid of middlemen in the distrib tion network.5 . rther# &okeMs operations in India are 577J . 3hort also reali6ed that India is a price sensitive market and the compan$ wo ld have to absorb in the increase in e'cise d t$ and said that in the long r n &oke will have to slash prices for the benefit of the cons mers and said that the$ were considering a c t in the prices of their fo ntain soft drinks. #( PROMOTION It m st be remembered that soft drinks p rchases are an Qimp lse b $ low involvement prod ctsQ which makes promotion and advertising an important marketing tool. &oke has a greater advantage in terms of geographical coverage.7J of the ind str$ nfort natel$ depends on these middlemen. This is more so beca se &oke has hiked the price of its concentrate b$ @s. " t &oke has had problems with its bottlers as the re+ ired profits for the bottlers have not been forthcoming. . This is straining the relationship between the &oke and its bottlers.7#777 o tlets Cin contrast with PepsiMs 2# 77#777D. 4ow# it plans to convert then into &%"%s.obs. 8 . Mr.

in (gra# the cit$ was flooded b$ tr cks# there wheelers# tric$cle cards!all with h ge red &oke!embla6oned bottles cold. &oke attrib tes its s ccess to bottlers# the &oca &ola s$stem itself# i. This was one big *olt to Pepsi. @etailers were displa$ing their &oke bottles in distinctive racks# also with speciall$!designed icebo'es to keep &oke STRATE%IES A#OPTE# Y CO"E AN# PEPSI .To promote a brand and even to spend a lot on advertising# the compan$ m st be aware of the perceived + alit$ of the brand# its brand power Cif at all there isD since cons mers make p rchase decision based on their perceptions of val e i. Price promotions often prod ce short!term sales increases.2 . )ver since &okeMs entr$ in India in 5::3# &oke made a come back Cafter + itting in 5:00D# in %ctober 2.e.# its e'ec tive committees# emplo$ees# "%D# compan$ presidents b t above all from the cons mer.# of + alit$ relative to price. &oca &ola has entered new markets and also developing market economics Clike IndiaD with m ch!needed *obs. &okeMs red color catches attention easil$ and also the Diet &oke which it introd ced was taking the &ake# as Pepsi has not come o t with this in India. mbrellas. (ccording to Pa l 3tobart# (dvertising enco rages c stomers to recogni6e the + alit$ the compan$ offers.e.

EMPO!ERMENT The Peps7 P2ocess: %nce of the strongest weapons in Pepsi1s armor$ is the fle'ibilit$ it has empowered its people with. )ver$ manager and salesperson has the a thorit$ to take whatever steps he# or she# feels will make cons mers aware of the brand and increase its cons mption. In this wa$ &oke is cop$ Pepsi. " t now coke is also entering into local actions. Instead of harping on its global lineage# ergo# it tries to pl g into ethnic festivals# se the vernac lar indifferent part of the co ntr$# and blend into the local fabric. &oca!&ola new tag line in this advertisement is “@eal shopping# real refresherG. &oke is also tr$ing to make their brand s$nchroni6e with locali6ed events traditions and festivals. .The Peps7 P2ocess: Despite being a global brand# Pepsi has b ilt its s ccess on meeting the Indian cons mer1s needs# partic larl$ in terms of making the brand s$nchroni6e with locali6ed events and traditions.3 . The Co<e Cop4: Instead of creating a bond with the c stomers thro gh small b t high!impact events# &oca!&ola chose to associate itself with national and international mega events like the 2orld & p &ricket# 5::/# and world c p football 5::8. Pepsi is sing both national campaigns!s ch as the Drink Pepsi# Eet 3t ff scheme# which offers large disco nts on other prod cts to Pepsi!b $ers as well as local.

In the past# this has shown p in its st bborn insistence on * nking the franchisee network it had ac+ ired from Parle. less than &oke1s .77 ml bottle in 5::. :# in (pril# 5::/# its 5. Too reall$ drive the market# as &oke wants to $o m st go down to @s. CO"E .at @s. 5. PEPSI VS. It la nched the ." t it co ldn1t contin e the lower price positioning for long.The Co<e Cop4: .1 and on its head+ arters!led approach. in its dependence on its own feedback mechanism over that of its bottlers. "$ this time# it had reali6ed that the &oca!&ola brand did not hold eno gh attraction for c stomers to fork o t a premi m. 58.. The Co<e Cop4: Initiall$# coke carbon!copied the strateg$ b$ introd cing its 337ml cans in Fan ar$ 5::/# at an invitation price of @s. PRICE The Peps7 p2ocess: Pepsi has consistentl$ wielded its pricing strateg$ as in invitation to sample# aiming to t rn trial into addiction. 8 vers s Th mps =p1s @s.# lowering the entr$!barriers. before raising it to @s. 37 ? @s . The 277ml &oke# la nched so far in parts of eastern# western# and northernIndia# is priced at @s.- . 31. .le'ibilit$ is the weapon that &oca!&ola# fettered as it is b$ the need for approvals from (tlanta for almost ever$thing. liters bottle followed &oke into the marketplace at @s.



0 .Compet7t7=e Compa27so8s O A5=e2t7s78g .

9t Peps7 IS g2ow78g 78 s9pe2ma2<etsI O P27c78g O No 57::e2e8ces .8 .O Co<e: L?@.? M7ll7o8 '0FF?( O #7st2739t7o8 O Co<e st2o8ge2 78 :o98ta78.@ m7ll7o8 '0FBA( to L.A m7ll7o8 '0FF?( O Peps7: L.A.00.? m7ll7o8 '0FBA( to L0@B.

These soda companies have been leading the wa$ in advertising ever since.COLA !ARS Coca. The impact of &oke and Pepsi on pop lar c lt re is indisp table# and I have observed in m$ time managing this web site that (merica has not become *aded abo t the cola wars. These two (merican companies long ago took their battle worldwide# and altho gh there are other colas in the market# these giants occ p$ this high!stakes arena b$ themselves. . . . . " t as the market got more and more l crative# professional advertising became more and more important. &oca! &ola was named after the coca leaves and kola n ts Fohn Pemberton sed to make it# and Pepsi after the beneficial effects its creator# &aleb "rad ham# claimed it had on d$spepsia. &oca!&ola was invented and first marketed in 588/# followed b$ Pepsi in 58:8. Pepsi was a distant# no threatening contender.or man$ $ears# &oca!&ola had the cola market cornered. IT ALL STARTE# .: . The memorabilia# the *ingles# the trivia ! all still pop lar. 3o I am offering this page in an attempt to ass age a wee bit of the &oke and Pepsi thirst that is thriving on o r planet. .cola =/s Peps7 OVER A CENT&RY O* COLA SLO%ANS/ COMMERCIALS/ L&N#ERS/ AN# CO&PS ThereMs little do bt that the most spirited and intense competition in the beverage world is between &oca!&ola and Pepsi.

(s we moved thro gh the $ears# both colas /7 . (t this time# &oca!&ola and Pepsi were served in dr gstore soda fo ntains. In 5:35# Pepsi went bankr pt again# b t the new owner# @o$ Megargel# wo ld hit pon an idea that wo ld finall$ give &oca! &ola some competition. Pepsi: New.A#VERTISIN% )ISTORY G COMMERCIALS Pepsi has definitel$ leaned towards the appeal of celebrities# pop lar m sic# and $o ng people in television commercials# while &oke relies more heavil$ on images of happiness and togetherness# tradition# and nationalism# perpet all$ tr$ing to cash in on its original lead. In 5:25# Pepsi went bankr pt# b t contin ed to appear on the scene# altho gh not nearl$ so s ccessf ll$ as &oca!&ola. In fact# as we will see# when &oca!&ola tried something new# it was disaster. KoilaS Profits for Pepsi. (dvertisements began to appear on billboards# newspapers# and streetcars.7# Pepsi offered a larger 2/! o nce bottle to co rt the $o ng (merican ho sewife. The first maga6ine ad for &oca!&ola appeared in Munsey's in 5:72. (nd in 5:. In a simplified sense# $o co ld s m p the strategies as Coke: Old. In the 5:/7Ms# the cola ad wars moved to television. In 5:7:# Pepsi sed its first celebrit$ endorser# a tomobile race driver "arne$ %ld!field# in newspaper ads. Pepsi racked p another first b$ airing the first radio *ingle in 5:3:.rancis # Tom Fones# The 4ew "eats# 4anc$ 3inatra# and The 3 premes. 3oon there were serving tra$s with images of people en*o$ing &oca!&ola# and glasses with the colaMs name on them. In 5:3-# he marketed Pepsi in a 52!o nce bottle for a nickel. It was so pop lar that it was pla$ed in * kebo'es and became a hit record &oca!&ola hit the airwaves in 5:-5. In 5:-/# inflation forced Pepsi to increase prices. (t the time# &oca!&ola was sold in a /!o nce bottle for ten cents. &oca!&ola emplo$ed a host of celebrit$ singers to promote the prod ct# incl ding &onnie .

&ons mers angril$ demanded that the old form la be ret rned# and &oca!&ola responded three months later with Classic Coke. )vent all$# 4ew &oke + ietl$ disappeared.incorporated some of their best slogans CQPepsi EenerationQ and Qthe @eal ThingQD into s bse+ ent commercials. /5 . @emember that oneT (pparentl$ the$ didnMt e'pect s to beca se later the$ gave s Pepsi %ne# sing the same concept# b t a completel$ different taste.o'# "ill$ &r$stal# Bionel @itchie# Eloria 3tefan# Foe Montana# and others. Pepsi# meanwhile# had its own flop# &r$stal Pepsi# which was s pposed to catch the strange wave of the times when ever$thing colorless was clean and desirable CPima# bottled waterD. In the 5:87Ms# Pepsi lined p the celebrities# starting with late Michael Fackson# then Madonna# Michael F.ranklin# )lton Fohn# and Pa la (bd l. The Pepsi &hallenge is still being cond cted toda$. .. (nd then there was Pepsi Bite with the lemon$ flavor and one calorie# introd ced in 5:0. &oke signed on Michael Fordan# 4ew >ids on the "lock# (retha . "ill &osb$ was the pitchman. (nd# e'tending the idea even f rther# we are now getting Pepsi Twist# a new prod ct with a twist of lemon flavor.# responding to the press re of the Pepsi &hallenge taste tests# which Pepsi alwa$s won# &oca!&ola decided to change its form la. In 5:8. This landmark was recalled in &hristmas versions in 5:83 and 5:8-# and a 5::7 3 per "owl ad# which was eno gh to make some "ab$ "oomers weep with nostalgia. " t &oke came p with what is arg abl$ the best of all cola commercials# the 5:05 IMd like to b $ the 2orld coke ad. This move set off a shock wave across (merica. In the 5:07s# market research showed that cons mers preferred the taste of Pepsi over &oke.

/2 .In 5::5# @a$ &harles sang# Q<o got the right one bab$# h!h hSQ (lso in the 5::7s# &ind$ &rawford and the 3pice Eirls pitched Pepsi. (nd then Pepsi aired commercials feat ring the aggravating little girl CHalide )isenbergD with her tro bling male voice. @ecentl$# Pepsi has had commercials b$ "ob Dole and .aith Hill# among others. In the new cent r$# both colas contin e to battle it o t on the television screen. (nd celebrities contin e to be important promoters.

. Pepsi# on the other hand# is promoting itself as something new# $o ng# and hip# which seems a little odd after over 577 $ears. &oke is to ting itself as the original# the a thentic# and appealing to a sense of tradition# positioning itself as an integral part of dail$ (merican life. .COLA 588/ ! Drink &oca!&ola 5:7.SLO%ANS ItMs clear in looking at the slogans over the $ears that &oke and Pepsi have ver$ different targeting strategies. Delicio s 5:78 ! 3parkling ! Harmless as 2ater# and &risp as . Pepsi has alwa$s targeted the $o th market more aggressivel$ than &oke. " t &oke was first# after all. ! &oca!&ola @evives and 3 stains 5:7. @efreshing .! &oca!&ola 3atisfies 5:7. COCA. ! Eood (ll the 2a$ Down 5:7/ ! The Drink of O alit$ 5:7/ ! The Ereat 4ational Temperance 5:70 ! Delicio s &oca!&ola# 3 stains# @efreshes# Invigorates 5:70 ! &ooling .rost 5:7: ! Delicio s# 2holesome# @efreshing 5:57 ! It 3atisfies 5:57 ! O enches Thirst as 4othing )lse &an 5:55 ! Its Time to Drink &oca!&ola 5:55 ! @eal 3atisfaction in )ver$ Elass 5:52 ! Demand the Een ine ! @ef se 3 bstit tes 5:53 ! The "est "everage nder the 3 n 5:53 ! ( 2elcome (ddition to (n$ Part$ ! (n$time ! (n$where /3 . .! Delicio s and @efreshing 5:7. .

riend Thirst )ver Had 5:38 ! P re 3 nlight 5:38 ! (n$time is the @ight Time to Pa se and @efresh /- .! &arr$ a 3mile "ack to 2ork 5:3.! Demand the Een ine b$ . ! (ll Trails Bead to Ice!&old &oca!&ola 5:3/ ! 2hat @efreshment % ght to "e 5:3/ ! The @efreshing Thing to Do 5:30 ! (mericaMs . ! The 3ociable Drink 5:2/ ! 3top at the @ed 3ign 5:20 ! (ro nd the &orner from (n$where 5:28 ! ( P re Drink of 4at ral .avorite Moment 5:30 ! 3o )as$ to 3erve and 3o Ine'pensive 5:38 ! The "est .! P re and 2holesome 5:5/ ! F st %ne Elass 2ill Tell <o 5:50 ! Three Million ( Da$ 5:5: ! O alit$ Tells the Difference 5:27 ! Drink &oca!&ola with 3oda 5:22 ! Thirst >nows 4o 3eason 5:22 ! Thirst &anMt "e Denied 5:22 ! Thirst @eminds <o ! Drink &oca!&ola 5:23 ! @efresh <o rself 5:2.! )'hilarating# @efreshing 5:5. ll 4ame 5:5.lavors 5:2: ! The Pa se that @efreshes 5:37 ! Meet Me at the 3oda .5:5.ace 5:3. ! 3i' Million ( Da$ 5:2.o ntain 5:32 ! Ice!&old 3 nshine 5:33 ! DonMt 2ear a Tired# Thirst$ .! Pa se and @efresh <o rself 5:2.

. .: ! "e @eall$ @efreshed /.3 ! Dependable as 3 nrise 5:. ! 2henever <o Hear QHave a &oke#Q <o Hear the Koice of (merica 5:-0 ! &oke >nows 4o 3eason 5:-0 ! 3erving &oca!&ola 3erves Hospitalit$ 5:-8 ! 2here ThereMs &oke# ThereMs Hospitalit$ 5:-: ! &oca!&ola .ood and &oca!&ola F st 4at rall$ Eo Together 5:.7 ! Help <o rself to @efreshment 5:.eel the Difference 5:. ! (mericaMs Preferred Taste 5:.0 ! 3ign of a Eood Taste 5:..5 ! Eood . (long the Highwa$ to (n$where 5:. .8 ! The &old# &risp Taste of &oke 5:./ ! &oca!&ola ! Making Eood Things Taste "etter 5:..or People on the Eo 5:.! How (bo t a &oke 5:-.! . ! Passport to @efreshment 5:-./ ! . 5:-3 ! The %nl$ Thing like &oca!&ola is &oca!&ola Itself.2 ! 2hat <o 2ant Is a &oke 5:. ItMs the @eal Thing 5:-3 ! ( Taste (ll Its %wn 5:-3 ! That )'tra 3omething 5:-.5:3: ! &oca!&ola Eoes (long 5:3: ! Make B nch Time @efreshment Time 5:3: ! Makes Travel More Pleasant 5:3: ! The Drink )ver$bod$ >nows 5:3: ! Thirst 3tops Here 5:-7 ! "ring in <o r Thirst and Eo (wa$ 2itho t It 5:-5 ! &ompletel$ @efreshing 5:-2 ! @efreshment That &anMt "e D plicated 5:-2 ! 2hoever <o (re# 2hatever <o Do# 2herever <o Ma$ "e# 2hen <o Think of @efreshment# Think of Ice!&old &oca!&ola.

(fter &oke 5:07 ! Its the @eal Thing 5:05 ! IMd like to b $ the 2orld a &oke 5:0.! F st . .ood ! @efreshing 4ew .or <o C4ew &okeD 5:8. ! .ree of It C&affeine .or the . ! (mericaMs @eal &hoice C&oca!&ola &lassicD 5:8/ ! &atch the 2ave C4ew &okeD 5:8/ ! @ed# 2hite and <o C&oca!&ola &lassicD 5:80 ! <o &anMt "eat the @eal Thing 5:8: ! &anMt "eat the . ! F st . . . .ree &okeD 5:8. It will satisf$ $o . // .or the Taste of It CDiet &okeD 5:8.or (ll Thirsts ! Pepsi!&ola 5:5: ! Pepsi!&ola ! It Makes <o 3cintillate 5:27 ! Drink Pepsi &ola.5:/7 ! @ela' 2ith &oke 5:/5 ! &oke and .eeling 5::7 ! &anMt "eat the @eal Thing 5::3 ! (lwa$s &oca!&ola 5::3 ! Taste it (ll PEPSI.ood Drink 5:7: ! Delicio s and Healthf l 5:5.COLA 5:73 ! )'hilarating# Invigorating# (ids Digestion 5:70 ! %riginal P re .! Book =p# (merica 5:0/ ! &oke (dds Bife 5:0: ! Have a &oke and a 3mile 5:82 ! &oke Is ItS 5:8.eeling 5:/2 ! &oca!&ola @efreshes <o "est 5:/3 ! Things Eo "etter 2ith &oke 5:/. ! 3omething More Than a 3oft Drink 5:// ! &oke . (fter &oke . ! 2eMve Eot a Taste .

8 ! "e sociable# have a Pepsi 5:/5 ! 4ow ItMs Pepsi# .5:28 ! Peps <o =pS 5:32 ! 3parkling# Delicio s 5:3.! @efreshing 2itho t .! @efreshing and Healthf l 5:3: ! Twice (s M ch .illing 5:.ree 5:0. 4othing )lse is a Pepsi 5::0 Eeneration 4e't 5::8 3ame Ereat Taste 5::: The Fo$ of &ola 2777 The Fo$ of Pepsi Foin the Pepsi /0 .! Pepsi# the &hoice of a 4ew Eeneration 5::2 ! Eotta Have It 5::3 ! "e <o ng# Have ..or Those 2ho Think <o ng 5:/3 ! &ome (liveS <o Mre In the Pepsi Eeneration 5:/0 ! Taste That "eats the %thers &old 5:/0 ! Pepsi Po rs It %n 5:/: ! <o Mve Eot a Bot to Bive and PepsiMs Eot a Bot to Eive 5:03 ! People . n# Drink Pepsi5::.eelinM .7 ! More "o nce to the % nce 5:.or ( 4ickel Too 5:-3 ! "igger Drink# "etter Taste 5:-: ! 2h$ take less when PepsiMs bestT 5:. ! Have a Pepsi Da$ 5:08 ! &atch That Pepsi 3pirit 5:85 ! PepsiMs Eot <o r Taste .7 ! The Bight @efreshment 5:.or BifeS 5:83 ! Pepsi 4owS 5:8.

H Q<eh P$as Hai "adiQ CHindi meaning QThis thirst is too m chQD CIndiaD 277.!277/H Q(n ice cold Pepsi.2773 Pepsi. ItMs the &ola 2777!2773H Q(a6adi dil kiQ CHindi! meaning Q.reedom of the HeartQDCIndiaD 2773H QItMs the &olaQ9QDare for MoreQ CPepsi &ommercialD 2773!277. ItMs better than se'SQ 277/!2770H Q2h$ <o DoggingM meQ9QTaste the one thatMs forever $o ngQ 2770!2778H QMore Happ$Q9QTaste the once thatMs forever $o ngQ 2778H Q<eh Hai <o ngistan Meri FaanSQ Hindi ! meaning QThis is the <o ng era m$ dearQ CIndia and PakistanD 2778H QPepsi 3t ffQ 3 per "owl &ommercial 2778H QPepsi is U5Q TK commercial 2778H QPepsif$ karo gaiSQ &ommercial CHindi meaning Q2anna Pepsif$SQD 2778!277:H Q3omething for )ver$one.Q 277:!presentH Q@efresh ever$thingQ and Cd ring man$ commercialsD Q)ver$ Eeneration @efreshes the 2orldQ /8 .


However# F stice 4a$ar ref sed to grant the e' parte in* nction so ght b$ Pepsi India to stop the alleged ind cements b$ &oke in offering emplo$ment to PepsiMs emplo$ees while the s it was pending in co rt.Peps7 = Coca. Pepsi has so ght a permanent in* nction and an e' parte order against coke# restraining it from taking awa$ PepsiMs emplo$ees and b siness associates. Pepsi has charged &oke with having entered into a conspirac$ to disr pt its b siness operations b$ ind cing ke$ emplo$ees and associates to break e'isting contracts illegall$. F stice & M 4air of the Delhi high co rt on (pril 50 iss ed notices and s mmons to &oca!&ola and 5.Cola wa2 t928s hot The ongoing cola war between global rivals Pepsi and &oca!&ola has taken a weird twist in India with the former dragging the latter to co rt.Q It added that &oca!&ola had approached man$ ke$ managers and had s ccessf ll$ l red a commercial manager of its bottling b siness Ea rav D ggal# and a manager in 3 rat 3ailesh Foshi# besides others. Pepsi has also reserved the right to seek financial damages from &oke at a later date if necessar$. %n behalf of Pepsi# (shok Desai and (r n Faitle$ contended that &oca!&ola had been Qrattled b$ the h ge s ccess of Pepsi in India entered into a conspirac$ d ring the last si' months to ca se loss and damage to PepsiMs b siness interests b$ adopting nfair and illegal means. Pepsi has claimed that a do6en middle!level managers and three territor$ managers broke their contracts with Pepsi to *oin &oke in recent months# while d ring the last $ear and half# seven managers + it Pepsi to *oin &oca!&ola. 07 . others for Ma$ /. The chargeH &oca!&ola has snatched emplo$ees# bottlers# and agents# all of whom are bo nd to Pepsi b$ a contract.

05 . However# media reports# + oting so rces# said that 3rinathMs contract had been onl$ in the verbal stage.Pepsi charged that while initiall$ these approaches were sporadic# over the last si' months it is clear that &oca!&ola has changed its strateg$ and has decided to conscio sl$ target and approach ke$ emplo$ees of Pepsi at vario s locations in India. The compan$ has alleged that in most cases# the emplo$ees have not been given time to adhere to the :7!da$ notice period and the one!$ear confidentialit$ agreement. Pepsi has cited the instance of &oke snapping p cricketer Favagal 3rinath in spite of the latter signing a contract with PepsiMs sports cons ltant# 25st &ent r$ Media. In its defense# &oke is e'pected to seek relief in the Indian &onstit tion which states that there can be no restriction on the movement of labor. Pepsi has reported a growth of 20 per cent compared to &okeMs 25 per cent d ring the same period. Pepsi has listed the case of &oke tr$ing to ind ce its m sic cons ltant D4( 4etworks Private Btd# which organi6ed the <anni show# to snap its ties with Pepsi and *oin &oke. In the first three months of last $ear# Pepsi grew b$ 58 per cent onl$. Desai claimed &okeMs actions wo ld directl$ harm the b siness interests of Pepsi# which had invested over I377 million in the co ntr$ in establishing b siness infrastr ct re. Incidentall$# in res lts anno nced for the first three months of the $ear# Pepsi has swept &oca!&ola aside. The latter deal bars emplo$ees *oining its rivals for at least a $ear. 3imilarl$# Pepsi has charged &oke with ind cing the "oard of &ontrol for &ricket in India to give the sponsorship of the recentl$ concl ded Pepsi Triang lar &ricket 3eries to &oke# as acknowledged in the "&&I s bmission before the "omba$ high co rt# even while a contract was signed with Pepsi. "esides# an$ effort b$ a compan$ to restrict its emplo$ees from *oining other companies might fall fo l of the Monopolies and @estrictive Trade Practices (ct as an nfair trade practice.

&oca!&ola India chief e'ec tive Donald 3hort had anno nced that &oke wo ld grow b$ at least 27 per cent for the whole of 5::8. The c rrent s mmer season is the most important for the cola giants# with cons mption at its peak. 02 . per cent market share to PepsiMs -3 per cent.. &oca!&ola# along with the Parle brands it ac+ ired when it came into India !! Th ms =p# Bimca# and Eold 3pot !! contin e to dominate India with a . " t in the cola segment# &oke comes a poor third after Th mps =p and Pepsi.


0- . %ne of the main reasons the stock has o tperformed Pepsi this $ear was beca se it reported a better than e'pected gain in nit vol me in the first + arter. (nd last month# &oke entered into an agreement with Ero p Danone to distrib te )vian bottled water in 4orth (merica. times 2772 reven e estimates.D %n T esda$# &oke anno nced that it was ac+ iring the 3eagramMs line of mi'ers# tonic# ginger ale and selt6er from Diageo and per nod @ichard. D e to this disparit$ in val ation# Feff >anter# an anal$st with Pr dential 3ec rities# sa$s he has a Qb $M rating on Pepsi and QholdQ on &oke. Pr dential does not do investment banking. CPepsiMs are act all$ a shade higher. (nd the compan$ has taken steps to cement its carbonated beverage lead as well gain gro nd in the bottled water market. "oth companies are e'pected to post slight declines in sales this $ear and an increase of abo t . &oke is trading at a nearl$ 27 percent premi m to Pepsi based on 2772 P9)s even tho gh the two companiesM earnings growth rates are nearl$ identical.percent in 2773. To be s re# &oke is still the market share leader in soft drinks. &oke is trading at 0 time1s estimated 2772 sales while Pepsi is trading at 3..D (nd when $o look at reven es# the gap is even more dramatic. C&oke and Pepsi both have their own brands of water# Dasani and (+ afina# respectivel$.PEPSI IS NOT AS PRICEY @egardless of which soda $o like better tho gh# Pepsi seems the better val e than &oke right now.

In fact# PepsiMs carbonated beverages are not even the biggest generator of sales and earnings for the compan$. nd and the tenth!largest holding in the (rmada )+ it$ Erowth . (s of March 35# Pepsi was the seventh!largest holding in the (rmada Ta' Managed )+ it$ . To that end# shares of Pepsi and &oke fell slightl$ on 2ednesda$ d ring the &isco!ind ced market rall$. nd. %ne potential risk for both Pepsi and &oke is the econom$. Q2hat attracts me to Pepsi is I have more faith in their abilit$ to grow earnings. PepsiMs soft drink b siness made p 5: percent of sales and 23.. nds. 4o# not if it goes back into a recession.2 percent of reven e and /. 0. 4ot onl$ are the$ s ccessf l on the beverage side b t the$ are s ccessf l with salt$ snack foods#Q sa$s &rit Thomas# director of growth e+ it$ for 4ational &it$ Investment Management &o.# the s b advisor for (rmada . PepsiMs .3 percent of operating profits in the first + arter.Some p2etKels w7th that so5aI " t while &oke relies solel$ on beverages for growth# another factor in PepsiMs favor is its diversit$. If the econom$ contin es to improve# the stocks co ld fall victim to what is known as sector rotation# the selling of defensive companies like food and beverages in order to b $ more economicall$ sensitive companies in the financial services and technolog$ sectors.rito!Ba$ brand of snack foods# which incl de .2 percent of operating profit.ritos# Doritos and @old Eold# acco nted for /5.oods# having ac+ ired O aker %ats last $ear. . Pepsi also owns Eatorade and O aker .

ThatMs beca se a weaker dollar helps boost the profits of international s bsidiaries# since profits made in a foreign c rrenc$ are converted back to dollars.3till# Thomas sa$s signs that the dollar is starting to weaken compared to other c rrencies sho ld prop p both stocks. The ma*orit$ of &okeMs sales are from its international operations# with * st 38 percent of reven e coming from the =. 0/ . Pepsi is not as big globall$ b t c rrenc$ fl ct ations are still a factor# as international sales acco nted for 2: percent of reven e in 2775.3. last $ear.

of locall$ made prod cts for ever$ I5 of materials it imported# and it had to agree to help the Indian government to initiate a second agric lt ral revol tion. To p nish &oca!&olaMs principal bottler# a &ongress Part$ stalwart and longtime Eandhi s pporter# the Fanata government demanded that &oca!&ola transfer its s$r p form la to an Indian s bsidiar$. The Indian middle class is growing at 57J per $ear. These domestic prod cers have little incentive to e'pand their plants or develop the co ntr$Ms potentiall$ enormo s market. 3ome anal$sts reason that the Indian market ma$ be more l crative than the &hinese market.Co<e a85 Peps7 78 I857a: &oca!&ola controlled the Indian market ntil 5:00# when the Fanata Part$ beat the &ongress Part$ of then Prime Minister Indira Eandhi. India has 8.J witho t raising costs. To obtain the license for India# Pepsi had to e'port I. In the end# all parties involved seem to come o t aheadH Pepsi gains access to a potentiall$ enormo s market. 00 . )ven before the first bottle of Pepsi hit the shelves# local soft drink man fact rers increased the si6e of their bottles b$ 2. and the Indian cons mer benefits from the competition from abroad and will pa$ lower prices. &oca!&ola balked and withdrew from the co ntr$.7 million potential c stomers# 5. India# now left witho t both &oca!&ola and Pepsi# became a protected market. Pepsi has also had to take on Indian partners. In the meantime# IndiaMs two largest soft!drink prod cers have gotten rich and la6$ while controlling 87J of the Indian market. Indian bottlers will get to serve a market that is e'panding rapidl$ beca se of competition.7 million of whom comprise the middle class# with disposable income to spend on cars# K&@s# and comp ters.

ml 3ottles 0 L7te2 3ottles So5a ?-.@?E@ A-0E@ ??.E@ ?DD A.0DD ?A.A L7te2 PET 3ottles • SELLIN% PRICE 'Pe2 c2ate( .ml 3ottles Ca8s 0.PRICE Ma'im m retail price of 377 ml bottles is controlled b$ the &entral Eovernment. AAP Price per bottles the empt$ bottles are priced at @s 527 per crate and the shell at @s 577.RETAIL PRICE 'Pe2 c2ate( . The other si6e and packs are priced keeping factors like competition# internal costs# e'ternal costs# and the corporate ob*ective of the compan$ in the mind. 08 . PRO#&CT       ?-. A-P MAC.

PRE*ERENCE O* SO*T #RIN"S IN A #AY O8ce a 5a4 Tw7ce a 5a4 O8ce a wee< Othe2 .AM .0 Once a day Twice a day Once a week Other Other 0: .-M AM A-M 60% 50% 40% 30% 20% 10% 0% 50% 25% 20% 5% Once a Tw ice a Once a day day w eek *7g92e.

PRE*ERENCE TO T)E RAN# Peps7 Co<e @-M E-M 80% 60% 40% 20% 0% 40% 60% Pepsi Pepsi *7g92e J . Coke Coke 87 .

TO %IVE T)E PRE*ERENCES Mo2e Pop9la2 Pac<ag78g Taste P27ce 0-M 0-M B-M 0-M 80% 60% 40% 20% 0% More Pop !ar Packa"in" 10% 10% 70% 10% Taste Price More Pop !ar Packa"in" Taste Price *7g92e J ? 85 .

MAR"ETIN% STRA%%LES O* COMPANY E**ECTS T)E SALES Yes No AAM @AM 60% 50% 40% 30% 20% 10% 0% 55% 45% #es #es *7g92e J @ $o $o 82 .

-M ?-M 50% 40% 30% 20% 10% 0% 45% 30% 20% 5% Te!e%ision &d%' Te!e%ision &d%' $ewspaper &d% $ewspaper &d% O tdoor &d% O tdoor &d% (a!es Pro)otion (a!es Pro)otion *7g92e J A 83 .*ORM O* MAR"ETIN% STRATE%IES Tele=7s7o8 A5=e2t7s78g Newspape2 A5=e2t7s78g O9t5oo2 A5=e2t7s78g Sales P2omot7o8 @AM AM .

C)AN%E RAN# ON T)E ASIS O* PRICE RE#&CTION Yes No A0M @FM #es 52% 51% 50% 4*% 48% #es *7g92e J E $o 51% 4*% $o 8- .

% % 50 % . A-M A-M MMM 80% 60% 40% 20% 0% 50 % % % % % Pepsi Co' Coke % Co' % % Pepsi Co' Coke Co' % % *7g92e J B % % % % % % % % 8.MORE E**ECTIVE A#VERTISIN% Peps7 Co. Co<e Co.

@AM % Co<e Co. @AM % 80% 60% 40% 20% 0% 45% 45% Pepsi Co' Pepsi Co' *7g92e J D Coke Co' Coke Co' 8/ .% % % % CREATIVE AN# APPEALIN% A#VERTISIN% O* T)E % SO*T #RIN" COMPANY% % % Peps7 Co.

AAM @AM 60% 50% 40% 30% 20% 10% 0% 55% 45% Pepsi Co' Pepsi Co' *7g92e JF Coke Co' Coke Co' 80 . Co<e Co.INNOVATIVE AN# ECCITIN% O**ERS Peps7 Co.

J of the respondents replied that it was ndo btedl$ Pepsi&o. The$ s pported their statement with reasoning# sa$ing so that Pepsi&o was first to associate with India1s . %n the other hand 22J of the respondents felt that &oca!&ola WIX Btd.7J of the respondents replied in favor of P&I while 37J responded in favor of &&I. . The$ said if one of the companies sponsors %ne event it1s s re that the other will definitel$ go on for the ne't.. in terms of who comes p with innovative and e'citing offers# or rather things which are livel$ and interesting to participate.P& LIC RELATIONS AN%LE I88o=at7=e a85 e>c7t78g o::e2s The respondents were asked to compare between Pepsi&o and &oca!&ola WIX Btd.ootball etc. It sponsors mega events like different &ricket to rnaments# %l$mpic Eames# 2orld & p . O ick and responsive to different occasions and events. is not trailing back. 3J of the respondents were not aware of all the activities and were modest to admit it. &omparing Pepsi&o and &oca!&ola WIX Btd# . It1s a to gh t ssle and is reall$ diffic lt to demarcate toda$ 88 . 50J of the respondents tho ght that both were e+ all$ good and it varied with time# place and occasions.7 $ears of independence.5:J of the respondents came p with a more balanced answer.

MAR"ET S)ARE PERCENTA%E IN NE! #EL)I CO"E PEPSI P92e #278<s AEM ?AM FM *% 35% Pepsi Coke P re +rinks 56% *7g92e . 0- 8: .

--D Peps7 Co<e Local 2a85 @@M A0M AM 5% 44% 51% Pepsi Coke .oca! -rand *7g92e .MAR"ET PERCENTA%E S)ARE IN ALL OVER IN#IA . 00 :7 .

2e can see that b$ the brilliant advertising done b$ Pepsi# which can be seen on ever$ hook and corner of metro cities cons mers# so prefer Pepsi advertisements and other activities of Pepsi# to that of &oca! &ola. :5 . . Pepsi and &oca!&ola were also entered. The res lts were as followsH Peps7 Coca.Cola The 2es9lts o: FA we2e : Peps7 Coca.RAN# PRE*ERENCES In a s rve$ done b$ ( A M maga6ines on the best marketing companies in India. Ah @h This shows that both the companies are pa$ing more attention to the marketing of their prod cts. Pepsi is higher p on the scale than &oca!&ola. . Bth Fh .Cola .

There is a rapid increase in the sale of cola soft drinks. (lso cola sales are growing at a faster rate than non!colas. If this demand contin es to grow at 27J grow at 27J ann all$# within 57 $ears the vol mes co ld reach 5 billion cases.*IN#IN%S G ANALYSIS The Indian soft drinks market is at 5-7 million cases per $ear. :2 . The rest of the 3J is shared b$ companies like &adb r$!3chweppes and &ampa!&ola. The race to + ench the great Indian thirst had deigned. %ne of the reasons for this co ld be the aggressive marketing strategies for &ola drinks b$ Pepsi and &oca!&ola. The total no. • &oca!&ola • Pepsi &oca!&ola and Pepsi together control :0J of the . 2hereas in 5::7# the$ acco nted for a third of all soft drinks sold# now their share is well over half. This kind of growth is the reason for the entr$ of the two giants of the soft drink ind str$ of the world. of case sold is 5-7 million of these 00 million cases of &ola drinks are sold and /3 million of non!cola drink. This is ver$ low# even as compared to Pakistan and "angladesh.entire Indian markets. (ll these factors together have contrib ted to a 27J growth in the soft drinks ind str$..

The rest is all earned b$ the soft drinks. In D)BHI it has 3. (ccording to a st d$ done# 87J of all soft drinks are cons med on premise# at the point of p rchase# rather than at home. Mirinda %range 3.e.Peps7 :78578gs: Pepsi is the 24D largest selling soft drink in India toda$. Pepsi officials and VDial!a!Pepsi1 scheme to grow the market# instead of giving disco nts at the retail level. :3 . . 37 crore ann all$ is credited to the foods section of Pepsi.J of the market share. The soft drinks in Pepsi . 5#777 crore ann all$ in India of this onl$ abo t @s. 0!=p -.oods BTD incl deH 5. th s the fo ntain initiative has paid off. In India it has --J of the market share making it the largest selling soft drink# b t the second largest compan$ in terms of sales. (nother point which attrib ted to Pepsi1s s ccess is the bottling operations. The sales of Pepsi is appro'imatel$ @s. Pepsi &ola 2. Mirinda Bemon The main advantage the Pepsi has over its nearest competitor i. (nother significant investment of Pepsi has been fo ntains.o ntains have considerabl$ increased sales of Pepsi# as the$ have offered cons mers a whole new wa$ to e'perience soft drink.# &oca!&ola is that of it1s was the first m ltinational to enter India# in the soft drinks sector. Pepsi does most of its bottling on its own.

:- .Th s we see that Pepsi has followed aggressive marketing strategies making the$ get into the minds of the cons mer b$ being visible inside and o tside the cons mers home b$ wa$ of television# radio 4ewspapers# hoarding# sales!promotion schemes# etc. Pepsi has been voted the n mber one c stomer service compan$ across categories in terms of reg larit$# availabilit$ responsiveness and initiative.

to repl$ back to this a new ad b$ P)P3I beverages feat ring (&T%@ @(4"I@ >(P%%@ and KI4DH= D(@( 3I4EH came waves at present.PRESENT COMPETITON ET!EEN COCA COLA AN# PEPSI • If we see the present scenario its hard to tell which brand is winning the cola wars as Pepsi had e'tended its cola wars to other sectors like .& which is owned b$ P)P3I &% there onl$ Pepsi prod cts are served ###this had lead 2 clear war in resta rant segment as wellL :. • @ecentl$ &%B(!&%B( beverages (&T%@3 IM@(4 >H(4 (4D >(B>I for a new ad .@IT%!B(<3 and 4IM"%%P which is giving to gh competition to coca ?cola which doesn1t target on these sectors. p which is making • &oke is served in M& D%4(BD3 and there we won1t find Pepsi prod cts even the coffee served is of E)%@EI( which is a coca!cola brand# same is the case of PIPP( H=T and >. . • 3econd aspect which is to be given in consideration is that# both the companies are spending heavil$ on advertisement and more celebrities are roped in b$ both the companies to fight the competition.

Moreover "I3B)@I still r les in this segment.• P)P3I is targeting $o ng generation and their ad campaigns are a clear e'ample of that# whereas coca!cola is targeting the famil$ as a whole which has been its old form la from ages. :/ . • Presentl$ coca!cola ma$ be leading in beverages like coke# b t its facing severe competition from Mirinda# 4imboo6 and snack ind str$ where P)P3I is r ling thanks to its >=@>=@) ad that has led to great sales for P)P3I &%.I4( CP)P3I &% "@(4DD both are treated e+ all$ b$ c stomers. • Tho gh in packed drinking water >I4B)< C&%&(!&%B( "@(4DD and (&O(.

:0 . • 2ith the coming p of &%MM)42)(BTH E(M)3 2757 in 4)2 D)BHI # both the brands wo ld tr$ to attract c stomers towards itself with heav$ promotion and ad campaigns to b ild new c stomers and increase there share in market as well as strengthen their brand val e and earn profits. • Pepsi have started advertisements with female actresses D))PI>( P(D=>%4) and &%&(!&%B( which had p till know onl$ endorsed male actors for the 5 st time endorsed >(B>I of D)KD fame with IM@(4 >H(4 in its new ad.*&T&RE SCENERIO O* COCA COLA V/S PEPSI • The &%B( 2(@3 between coca!cola and Pepsi wo ld f rther grow and in m$ view its never ending • "oth the companies wo ld tr$ to become 4%5 and there wo ld (D 2(@ between the two which wo ld prove to be beneficial for actors9actresses as the$ wo ld earn more thro gh advertisements.

ARE T)E MAR"ETIN% STRATE%IES O* A COMPANY A**ECT ITS SALESI Yes No +..+&ESTIONNAIRE +.A.0.@.?.. !)IC) RAN# !ILL YO& PRE*ERENCE O* SO*T #RIN"S IN A #AYI O8ce a 5a4 Tw7ce a 5a4 O8ce a wee< Othe2 +. !)IC) *ORM O* MAR"ETIN% STRATE%IES IS MOST E**ECTIVE IN T)E MAR"ETI Tele=7s7o8 A5=e2t7s78g Newspape2 A5=e2t7s78g O9t5oo2 A5=e2t7s78g :8 . !)IC) RAN# ARE YO& PRE*ERENCE TO T)E RAN#I Peps7 Co<e +. !)IC) PARTIC&ALAR RATE TO %IVE T)E PRE*ERENCESI Mo2e Pop9la2 Pac<ag78g Taste P27ce +.

Sales P2omot7o8 :: .

+. Co<e Co. !ILL YO& C)AN%E T)E RAN# ON T)E ASIS O* PRICE RE#&CTIONI Yes No +. !)IC) RAN# MORE E**ECTIVE IN A#VERTISIN%I Peps7 Co.cola a85 Peps7 3oth a2e la=7shl4 spe8578g o8 the72 a5 campa7g8s to att2act c9stome2s.E. Co<e Co. Co<e Co.+.B. !)IC) RAN# )AVIN% T)E INNOVATIVE AN# ECCITIN% O**ERSI Peps7 Co.D.#o 4o9 th78< that coca. !)IC) RAN# )AS CREATIVE AN# APPEALIN% A#VERTISIN% O* T)E SO*T #RIN" COMPANYI Peps7 Co.F. +.0. YES NO 577 . +.

Co8s9me2s . (d lts stick to one and the$ prefer drinks that do not affect their health# like Bimca.e. a. This was tr e for all the cons mers who were interviewed. Different age gro ps b. The$ tried different drinks# &ola and non!&ola. b. %ne thing that was common amongst all the cons mers who were once a da$ or once a week. (d lts liked to have soft drinks abo t once or twice a week. <o ng ad lts liked to have soft drinks p to 5!2 times a da$. &hildren preferred &oca!&ola . &hildren p to 5.anta# Mirinda orange. People from different localities# etc. Males and females c. 575 . Marketing strategies made the cons mer tr$ a drink for the first time. The reason given for choice of favorite1s soft drink was taste and eas$ availabilit$. $ears of age liked to have soft drinks p to 2!3 times a da$. %nl$ if the cons mer liked the taste of drink# he wo ld have it again. <o ng ad lts liked Pepsi.J of the cons mers felt that marketing strategies of the compan$ did affect the sales of their soft!drink. The older generation preferred &oca!&ola# Bimca A Mirinda Bemon.# H a. The rest of the concl sions as ded cted from the + estionnaires are as followsH The $o nger generation preferred soft drinks to the older generation. The concl sions that one can draw from these answers provided b$ the cons mers showed that marketing activities do form a ma*or part of the decision. <o ngsters were more acceptable to change. The second time ro nd it was the cons mers choice himself and not strateg$ co ld affect that. &are was taken to interview all t$pes of cons mers# i. The n mber one factors the infl ences a c stomer while b $ing a soft!drink was taste.or the p rpose of the st d$# + estionnaires were prepared for the &ons mers.:. In all abo t /7 cons mers were interviewed. c.

Their new advertisement of Mirinda Bemon is also lifted b$ the people. 572 .Ma*or n mber of people fo nd television advertising to be the most effective. The advertisement that came in second was the &oca!&ola advertisement of the people &ricket and the song M st!>alander going on at the back. These# advertisement remained most in the minds of the people. ::J of the cons mers interviewed felt that the marketing strategies of the &oca!&ola and Pepsi have helped them in attaining the h ge market share that the$ possess. 2omen and children prefer cans as compared to men. 3ponsoring events# o tdoor advertising and sales promotion schemes were second choice of the cons mers. <o ng and the old liked to watch the advertisements on television. Most of the cons mers felt that Pepsi was the market leader in the soft!drink ind str$# in Delhi well as in India. =nder television advertising# Pepsi came in as the n mber 5 favorite of the people the advertisement of 3hah!@ kh >han and the dog was the favorite of the cons mers. These are the ma*or concl sion that can be drawn abo t a cons mers1 behavior. &ompanies m st take the initiative of finding o t the habits of the cons mers and then changing them# in their favor.

• A- 2espo85e8ts we2e chose8 amo8g 57::e2e8t age g2o9ps :o2 co859ct78g the s92=e4

• *IN#IN%S:

5. <%=4E3)T@3 prefer P)P3I &%B( over &%>) 2. %lder age gro p prefer Mirinda lemon and limca over coke and Pepsi cola 3. (D3 pla$ a ma*or role in choosing of brand -. &elebrities have a great effect on people cons ming cold drinks .. People prefer 4imboo6 CPepsi coDover Pepsi cola and coke. /. In terms of innovative and e'citing offers Pepsi co leads coca!cola. 0. 2hen the + estion of more effective advertisements was asked mi'ed reactions came with .7!.7 response for both &oke and Pepsi. 8. Price pla$s an effective role for choosing of prod ct among I4DI(4 &%43=M)@3. :. T(3T) came o t to be most important for the cons mers in preferring for a partic lar brand. 57. T)B)KI3I%4 came o t to be most effective for ad campaigns as respondents of all age gro ps watch tv.


3oft drinks are an imp lse prod ct. 2hen a person is thirst$# he wo ld first think of water or tea. 3ome even wo ld prefer V4imboo6 “Y The Indian pop lation is the largest in the world toda$# there can be no other co ntr$ in the world# which provides so m ch of an opport nit$ for the soft!drink man fact rers. The Indian soft drink market is at 5-7 million cases per $ear# this is ver$ low. Th s the cons mption of soft drink can go p. 3inc558Ze the entr$ of &oca!&ola into the co ntr$ the ind str$ is growing at a rate of 27J ann all$. If this rate is maintained# then b$ the $ear 277. the market of soft drink wo ld be 5 billion cases ann all$. However &oca!&ola wants to accomplish this feat b$ them. To do this the ind str$ has to take certain steps. (ll the companies are fighting to get a ma*or share of this growing market. The$ sho ld all tr$ to increase the total market along with their individ al shares. %n the basis of all the field work and table work done# some s ggestions can be made# which ma$ help the compan$ in increasing the total market as well as the sale of the companies. The vario s s ggestions that can be made are as followsH! 3oft drinks retail at prices between @s. / and @s. 57. These are e'pensive when meas red against p rchasing power. (ccording to one st d$# it takes Indian .7 min tes of work to be able to b $ a bottle in other co ntries# the norm is five min tes. Th s to increase the total market of soft drinks# man fact res sho ld tr$ and decrease the prices# so as to increase sales. (vailabilit$ is a ma*or factor# which makes the cons mer b $ a soft drink. 3oft drinks sho ld be made available more readil$ than present. There are onl$ 377# 777 retailers stocking soft drinks in India. Th s retailing o tlets sho ld be increased. (lso related to this point# is vending machines. In developed machines# vending machines are kept in all cons mer areas# like s per markets# schools# am sement parks# local markets# etc. These


Tempt a person into b $ing the soft drink. 3o if vending machines are p t in strategic areas# it wo ld definitel$ increase cons mption of soft drinks. 3oft drink cans which are ver$ convenient# as the cons mer can take them an$where# nlike a bottle# are ver$ e'pensive retailing from @s. 5.!@s. 58. To increase sale of cans# this price sho ld be bro ght down. Innovations increase sales of compan$. ,or e.g. fo ntain Pepsi increased sales of Pepsi &ans increased sales of &oca!&ola. Th s the companies hav constantl$ come o t with innovative ideas.)'ample!377 ml plastic bottles# which the cons mer can take with him# nlike the glass bottles# which he has to ret rn. Plastic bottles can even be sed again b$ ho seholds for vario s p rposes. The companies sho ld cond ct st dies to get to know abo t cons mer habits. ,or e.g. &oke knows that (mericans see /: of its commercials ever$ $ears # p t ..2 ice c bes in a glass and prefer cans to pop o t of vending machines at a temperat re of 3. degrees. If the companies know all this and more abo t Indian cons mer behavior# it co ld tell them how to sell their drinks# so as to increase sales. It is seen In India# that people prefer having their drinks with or after food. &ompanies co ld have commercials which show people en*o$ing their drink with a good meal# so that cons mers associate drinking soft drinks while having food. &ompanies sho ld tr$ to ed cate the cons mer abo t the health related s b*ect. ,or e.g.H! aD Bimca is recommended to patients b$ doctors. bD &ola drinks are known to be ver$ fattening # " t in fact cola drinks contain no calories from fat the$ contain calories from s gar which can be easil$ b rned off. The soft drink cans and plastic bottles sho ld mention the calories and other related information on the packing. &ompanies sho ld tr$ to b ild high brand e+ it$. This provides a n mber of advantages to the compan$. aD The compan$ en*o$s red ced marketing costs beca se of high level of cons mer brand awareness and lo$alt$.


This wo ld increase reven es of the compan$. Pepsi and &oca!&ola are so b s$ fighting with each other# that the$ have left the non!cola sector open for &adb r$! 3chweppes. (dvertising is a wa$ b ilding brand image. Th s sales promotion tools s ch as co pons# contests# premi ms and the like sho ld be sed to dramati6e prod ct offers and to boost sales. . 57/ . It does not promote + ick selling. The companies sho ld not have competitor m$opia. The companies sho ld go in for diversification %nce the brand is known# it is easier to sell more of its prod cts. eD (bove all# the brand offers the compan$ some defense against fierce price competition.g. Television advertising seems to make a impact on the cons mers Cbased on + estionnaire answersD so companies sho ld concentrate more on television advertisements. &oca!&ola clothes have sold abo t I577 million worth of clothes and accessories. It is more often the latent compan$ than the c rrent competitor who b sies the compan$. Th s companies sho ld sed advertising onl$ for long advertising can be sed forH aD "rand image b ilding bD @eminder advertisingH reminding people to b $ these drinks. 3ales promotion tools create a stronger and + icker response. cD @einforcement advertising!Telling people that the$ have made the right choice. cD The compan$ can change a higher price than its competitors beca se the brand has higher perceived + alit$.or e. dD The compan$ can more easil$ la nch brand e'tension.bD The compan$ will have more trade leverage in bargaining with distrib tors and retailers since the c stomer e'pects them to carr$ the brand. 3ales!promotion effects are s all$ short r n and ind ce the people to p rchase soft drinks# now.

It is recommended that compan$ sho ld introd ce more and more c stomer oriented schemes and conte'ts. The effectiveness of this can be + estioned. 570 . Pepsi1s new campaign “Pepsi cool malG in which the$ are giving free gifts to their c stomers.or e. sho ld red ce their massive spending on sponsoring events and tr$ and channel this mone$ into more prod ctive activities# like innovative packaging etc. Pepsi&o and &oca &ola CID Btd.g. Th s we see that there vario s steps which can be taken b$ the companies to increase their sales and to increase the total market share.7 ml.&oca!&ola and Pepsi have taken p sponsoring of events on a ma*or scale. The compan$ sho ld maintain a small gro p of “missionar$ sales manG whose f nctions sho ld be to g ide distrib tors and retailers# keep a constant watch over the prevailing sit ation to provide the contin o s feedback to the compan$. 2hether these activities increase sales or not is a big h ge + estion mark. (ll kinds or events# whether big C2ills 2orked c pD or small Ccollege contestsD have either Pepsi or &oke banners of sponsorship. It is also recommended that companies sho ld la nch soft drink in small pack 277 ml and 5. .

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