A Summer Training Report On “Coke V/s Pepsi Market Share in special area of NCR”

Submitted in partial fulfillment for the requirement of the award of degree in Master of Business Administration
SUBMITTED TO: Ms. Famina (Faculty) SUBMITTED BY: CHIRAG Roll No. (0) MBA (4th Sem.)

The opportunity of research with the help of Mr. Ashish Khandalwal (Marketing Manager) to very professional and experience Work for me.. It is not only gave me practical and analytical experience but also contributed largely in laying the foundation for concern the fields of marketing and the information about very large and glamour war between the two big cola companies. . I wish to express my profound gratitude to my faculty Ms. Famina (Faculty) who gave me an opportunity to undergo summer training and who gave a patient hearing and support. Thus increasing my knowledge and understanding the various facts and function of the soft drink industry. .



Marketing is too important to be left to the marketing department. David Packard of Hewlett Packed. The Indian market is getting to be consumer-led. This is the reason behind the unprecedented boom in advertising. Below the line marketing activities, fast distribution system and more sophisticated consumer research. On the media front, satellite proliferation has trigged of a new genre of media research, which is highly viewer ship based. Consumer satisfaction has become research worthily Multinationals are pouring in precisely because of this new chapter in Indian consumerism. The dilemma that all marketers are facing is getting the maximum done in the minimum possible time. And with brand loyalty becoming a thing of the past, given the choice available to the consumer pull. The consumer could be a purchaser of end products, or a financial investor, or even an industrial purchaser. Everywhere, there is a new thrust on marketing and advertising. The hyper activity in the market place is seeing a boom in support services, with a number of independent agencies mushrooming to provide them. Corelated to the market book, services are well on their to becoming a major industry. The creative leap is increasingly being governed by market realities and consumer research. And Clint interface is no longer limited to the Clint service people, but including all specialists in agencies. The entry multinational products in to the country are seeing more emphasis aid world- class quality. This along with the loosening of regulations is seeing


export gaining ground. From thinking along the lines of merely exporting spares and raw material the exporters and now looking towards finished products. A multiplier to this is the joint venture companies looking at becoming export manufacturing bases. The scene has moved beyond the threshold of global presence, inward and out ward. However, there are certain issue still dogging an unhindered move forward something bound to happen when the economy is just opening up. These need to be addressed. Nonetheless, India has taken the irrevocable step forward in becoming a part of the global family. And in the process of growth, there are already and will be in future, quantum jumps in progress.




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To find out the market plan of the company over the competitors. To analyze the market share of COKE. To study the consumer preference about COKE.


This project is an extensive research on the marketing strategies of the two Cola giants Pepsi and Coca Cola. It covers an extensive survey and depicts all graphs, fact and figures of two companies. It begins with the introduction of soft drink industry and introduction of these two companies of soft drink industry. It covers some of the major strategies adopted by Pepsi and CocaCola like their pricing policy, sales promotion and advertising policy, distribution policy etc. The project has been made interesting with the inclusion of the topics, which covers the 4P’s of marketing. The major players in the soft drink industry in India are Coke and Pepsi. Pepsi holds the major market share followed by Coke. They have a cut throat competition between themselves. Whatever strategy is followed by one company, it is copied by the other. Sample of to brands were selected on the basis of there uses and noticeciability.

One of the selected brands are NO1 brand in their respective product categories the other one brand is close competitor of the No 1 brands. Total sample of size of 200 respondents selected on the basic of convenience was surveyed which include consumers. Data was collected from secondary as well as primary sources. Structure questionnaire was use to collect primary data


i .e e x

In the modern urban culture consumption of soft drinks particularly among younger generation has become very popular. Soft drinks in various flavors and tastes are widely patronized by urbane population at various occasions like dinner parties, marriages, social get together; birthday calibration etc. children of all ages and groups are especially attracted by the mere mention of the word soft drinks.

With the growing popularity of soft drinks, the technology of its production, preservation, transportation and or marketing in the recent years has witnessed phenomenal changes.

The so-called competition for this product in the market is from different other brands. Mass media, particularly the emergence of television, has contribute to a large extent of the ever growing demand for soft drinks the attractive jingles and sport make the large audience remember this product at all times.

It is expected that with the sort of mass advertising, reaching almost the entire country and offering various varieties annual demand for the product is expected to rise sharply in the times to come.


In any marketing situation, the behavioral / environmental variables relating to consumers, competition and environment are constantly influx. The competitors in a given industry may be making many tactical maneuvers in market all the time. The may introduce or initiate an aggressive promotion campaign or announce a price reduction. The marketing man of the firm has to meet all these maneuver and care of competitive position of his firm and his brand in the market. The only route open to him for achieving this is the manipulation of his marketing tactics. In today’s highly competitive market place, three players have dominated the industry; The New York based Pepsi Company Inc. The Atlanta based coca- cola and U.K. based Cadbury Schweppes. Through the globe, these major players have been battling it out for a bigger chunk of the ever –growing soft drink market. Now this battle has been evolved up to India too with the arrival of these three giants. Soft drink industry is on amazing growth; ultimately these are only one person who will determine their fortunes. The Indian consumer. The real War to quench his thirst has just begun.


It all began in 1886, when a tree legged brass kettle in Hohn Styth pemberton’s backyard in Atlanta was brewing the first P of marketing leged. Unaware the pharmacist has given birth to a caromel colored syrup, which is now the chief ingredient of the world’s favorite drink. The syrup combined with carbonated the soft drink market. It is estimated that this drink is served more than one thousand million times in a day. Equally oblivious to the historic value of his actions was Frank Ix. Robinson, his partner and book keeper. Pemberton & Robinson laid the first foundation of this beverage when an average nine drinks per day to begin with, upping volumes as sales grew. In 1894, this beverage got into bottle, courtesy a candy merchant from Mississippi. By the 1950’s Colas were daily consumption items, stored in house hold fridges. Soon were born other non- cola variants of this product like orange & Lemon. Now, the soft drink industry has been dominated by three major player – (1) The New York based Pepsi co. Inc.(2) The Atlanta based coca cola co. (3) The united Kingdom based Cadbury Schweppes. Though out the glove these major players have been battling it. Out for a bigger chunk of the ever-growing cold drink market. Now this battle has begun in India too. India is now the part of cold drink war. Gone are days of Ramesh Chauhan, India’s one time cola king and his bouts of pistol shooting. Expect now to hear the boon of cannons when the Coca Cola &

Pepsi co. battle it out for, as the Jordon goes a bigger share of throat. By buying over local competition, the two American Cola giants have cleared up the arena and are packing all their power behind building the Indian franchisee of their globe girdling brands. The huge amount invested in fracture has never been seen before. Both players seen an enormous potential in his country where swigging a carbonated beverage is still considered a treat, virtually a luxury. Consequently, by world standards India’s per capita consumption of cold drinks as going by survey results is rock bottom, less than over Neighbors Pakistan & Bangladesh, where it is four times as much. Behind the hype, in an effort invisible to consumer Pepsi pumps in Rs 3000 crores (1994) to add muscle to its infrastructure in bottling and distribution. This is apart from money that company’s franchised bottles spend in upgrading their plants all this has contributed to substantial gains in the market. In colas, Pepsi is already market leader and in certain cities like NCR , Pepsi outlets are on one side & all the other colas put together on the other. While coke executive scruff at Pepsi’s claims as well as targets, industry observers are of the view that Pepsi has definitely stolen a march over its competitor coke. Apart from numbers, Pepsi has made qualitative gains. The foremost is its image. This image turnaround is no small achievements, considering that since it was established in 1989, taking the hardship route prior to liberalization and weighed down by export commitments. Now, at present as there are three major players coke, Pepsi and Cadbury and there is stiff competition between first two, both Pepsi and coke have started, sponsoring local events and staging frequent consumer promotion campaigns. As the mega event of this century has started, and the marketers

are using this event – world cup football, cricket events and many more other events. Like Pepsi, coke is picking up equity in its bottles to guarantee their financial support; one side coke is trying to increase its popularity through. Eat Food, enjoy Food. Drink only coca cola. Eat cricket, sleep cricket. Drink only coca cola. Eat movies, sleep movies. Drink only coca cola. On the other side of coin Pepsi has introduced AMITABH BACHHAN for capturing the lemon market through MIRINDA – Lemon with “zor ka jhatka dheere se lage”. But no doubt’ that UK based Cadbury is also recognizing its presence. So there is a real crush in the soft drink market. With launch of the carbonated organize drink Crush, few year ago in Banaras ., the first in a series of a launches , Cadbury Schweppes beverage India (CSBI) HAS PLANNED:The world third largest soft drink marketers all over the country.CSBI o wholly owned subsidiary of the London based $ 6.52billion. Cadbury Schweppes is hoping that crush is going well and well not suffer the same fate as the Rs. 175 crore Cadbury india’s apple drink Apella. CSBI is now with orange (crush), and Schweppes soda in the market.

As orange drinks are the smallest of non-cola categories that is Rs. 1100 crore market with 10% market share and cola heaving 50% is followed by Lemon segment with 25%.


The success of soft drink industry depends upon 4 major factors viz.  Availability  Visibility  Cooling  Range

Availability means the presence of a particular brand at any outlet. If a product is now available at any outlet and the competitor brand is available, the consumer will go for the at because generally the consumption of any soft drink is an impulse decision and not predetermined one.

Visibility is the presence felt, if any outlet has a particular brand of soft drink say- Pepsi cola and this brand is not displayed in the outlet, then its availability is of no use. The soft drink must be shown off properly and attractively so as to catch the attention of the consumer immediately Pepsi achieves visibility by providing glow signboards, hoarding, calendars etc. to the outlets. It also includes various stands to display Pepsi and other flavors of the company.

As the soft drinks are consumed chilled so cooling them plays a vital role in boosting up the sales. The brand, which is available chilled, gets more sales then the one which is not, even if it is more preferred one.

This is the last but not the least factor, which affects the sale of the products of a particular company. Range availability means the availability of all flavors in all sizes.


METHODOLOGY Research is a common language refers to a search of knowledge. Research is scientific & systematic search for pertinent information on a specific topic, infect research is an art of scientific investigation. Research Methodology is a scientific way to solve research problem. It may be understood as a science of studying how research is don’t scientifically. In it we study various steps that are generally adopted by researchers in studying their research problem. It is necessary for researchers to know not only know research method techniques but also technology. The scope of Research Methodology is wider than that of research methods. The research problem consists of series of closely related activities. At times, the first step determines the native of the last step to be undertaken. Why a research has been defined, what data has been collected and what a particular methods have been adopted and a host of similar other questions are usually answered when we talk of research methodology concerning a research problem or study. The project is a study where focus is on the following points: RESEARCH DESIGN A research design is defined, as the specification of methods and procedures for acquiring the Information needed. It is a plant or organizing framework for doing the study and collecting the data. Designing a research

plan requires decisions all the data sources, research approaches, Research instruments, sampling plan and contact methods. Research design is mainly of following types: 1. Exploratory research. 2. Descriptive studies 3. Casual studies

EXPLORATORY RESEARCH The major purposes of exploratory studies are the identification of problems, the more precise Formulation of problems and the formulations of new alternative courses of action. The design of exploratory studies is characterized by a great amount of flexibility and ad-hoc veracity. DESCRIPTIVE STUDIES Descriptive research in contrast to exploratory research is marked by the prior formulation of specific research Questions. The investigator already knows a substantial amount about the research problem. Perhaps as a Result of an exploratory study, before the project is initiated. Descriptive research is also characterized by a Preplanned and structured design. CASUAL OR EXPERIMENTAL DESIGN A casual design investigates the cause and effect relationships between two or more variables. The hypothesis is tested and the experiment is done. There are following types of casual designs: I. II. After only design Before after design



Before after with control group design Four groups, six studies design After only with control group design. Consumer panel design Exposit facto design



Direct personal Interview Indirect personal Interview Information from correspondents Mailed questionnaire Question filled by enumerators.
Published Sources

Unpublished Sources


Report Committees & Commissions Private Publication Research Institute

PRIMARY DATA These data are collected first time as original data. The data is recorded as observed or encountered. Essentially they are raw materials. They may be combined, totaled but they have not extensively been statistically processed. For example, data obtained by the peoples.


SECONDARY DATA Sources of Secondary Data Following are the main sources of secondary data:
1. Official Publications: Publications of the PEPSI & COKE and by

the corporate office of PEPSI & COKE.
2. Publications

Relating to Trade: Publications of the trade

associations, stock exchange, trade union etc.
3. Journal/ Newspapers etc.: Some newspapers/ Journals collect and

publish their own data, e.g. Indian Journal of economics, economist, Economic Times.
4. Data Collected by Industry Associations: For example, data

available with PEPSI & COKE..
5. Unpublished Data: Data may be obtained from several companies,

organizations, working in the same areas. For example, data on PEPSI & COKE magazines.

Period of Study: This study has been carried out for a maximum period of 8 weeks. Area of study: The study is exclusively done in the area of marketing. It is a process requiring care, sophistication, experience, business judgment, and imagination for which there can be no mechanical substitutes.


Sampling Design: The convenience sampling is done because any probability sampling procedure would require detailed information about the universe, which is not easily available further, it being an exploratory research. Sample Procedure: In this study “judgmental sampling procedure is used. Judgmental sampling is preferred because of some limitation and the complexity of the random sampling. Area sampling is used in combination with convenience sampling so as to collect the data from different regions of the city and to increase reliability. Sampling Size: The sampling size of the study is 100 users. Method of the Sampling: Probability Sampling It is also known as random sampling. Here, every item of the universe has an equal chance or probability of being chosen for sample. Probability sampling may be taken inform of: Simple Random Sampling A simple random sample gives each member of the population an equal chance of being chosen. It is not a haphazard sample as some people think! One way of achieving a simple random sample is to number each element in the sampling frame (e.g. give everyone on the Electoral register a number) and then use random numbers to select the required sample.


Random numbers can be obtained using your calculator, a spreadsheet, printed tables of random numbers, or by the more traditional methods of drawing slips of paper from a hat, tossing coins or rolling dice. Systematic Random Sampling This is random sampling with a system! From the sampling frame, a starting point is chosen at random, and thereafter at regular intervals. Stratified Random Sampling With stratified random sampling, the population is first divided into a number of parts or 'strata' according to some characteristic, chosen to be related to the major variables being studied. For this survey, the variable of interest is the citizen's attitude to the redevelopment scheme, and the stratification factor will be the values of the respondents' homes. This factor was chosen because it seems reasonable to suppose that it will be related to people's attitudes Cluster and area Sampling Cluster sampling is a sampling technique used when "natural" groupings are evident in a statistical population. It is often used in marketing research. In this technique, the total population is divided into these groups (or clusters) and a sample of the groups is selected. Then the required information is collected from the elements within each selected group. This may be done for every element in these groups or a subsample of elements may be selected within each of these groups.


Non Probability Sampling It is also known as deliberate or purposive or judge mental sampling. In this type of sampling, every item in the universe does not have an equal, chance of being included in a sample. It is of following type: Convenience Sampling A convenience sample chooses the individuals that are easiest to reach or sampling that is done easy. Convenience sampling does not represent the entire population so it is considered bias. Quota Sampling In quota sampling the selection of the sample is made by the interviewer, who has been given quotas to fill from specified sub-groups of the population. Judgment Sampling The sampling technique used here in probability > Random Sampling. The total sample size is 100 profiles. Data Collection: - Data is collected from various customers through personal interaction. Specific questionnaire is prepared for colleting data. Data is collected with mere interaction and formal discussion with different respondents and we collect data in PEPSI & COKE and face to face contact with the persons from whom the information is to be obtained (known as informants). The interviewer asks them questions pertaining to the survey and collects the desired information. Thus, the we collect data

about the working conditions of the workers of COKE; I worked at COKE contact the workers and obtain the information. The information obtained are first hand or original in character.


Coca-Cola come to India with fanfare in the fifties. For a number of days, The Hindustan Times and other newspapers of New Banaras carried full page advertisement showing a big boy in uniform with a soft-drink crown as the cap. There was no indication of the product. After a few days, Coke was introduced. It was an entirely new drink which fascinated people. It soon became the national drink. For the first time, a soft-drink was available from one corner of the country to another. The person who brought Coca-Cola to India was the father of late Sardar Charanjit Singh, Sardar Mohan Singh. A practical man Mohan Singh realised that to popularise Coca-Cola, and make it a best seller it was necessary to “catch them young.” So he focused on youngsters in the society. The company realised that to become a mass consumption product, one has to go to the village. They gave much importance to the distributive network. The company trucks supplied coke to even the remotest village. Few products appears to be more similar than soft drinks, yet the Cola wars that mark the competition between Coke and Pepsi show how even organizations with highly similar product can be differentiated by their business strategies. Then came battles over the issue of bottle size standardization. Coke the arch rival tried to offering more Cola at a lower price. Pepsi which had some of its early investment tied up in 250ml bottles, went the fountain way. The General bottle size freed has settled at 300 ml, 100 ml more than the pre MNC standard. Fountain mix dispensers, carry home bottles, even 1.50 plastic bottle with caps good enough to keep them lying down and still preserve the fizz.


It poured in vast sums to whip up its visibility at the retail level, so that consumers were greeted virtually at every street corner by Pepsi’s blue, red and white colors, because they have perception “the thing on display sells more.”. Coca-Cola is, finally, redoing the real thing to the replicate the success that its arch-rival, PepsiCo, has achieved with its fast and furious marketing. But to win them, Coke is copying Pepsi.



The Pepsi Process: Despite being a global brand, Pepsi has built its success on

meeting the Indian consumer’s needs, particularly in terms of making the brand synchronize with localized events and traditions. Instead of harping on its global lineage, ergo, it tries to plug into ethnic festivals, use the vernacular indifferent part of the country, and blend into the local fabric. Pepsi is using both national campaigns-such as the Drink Pepsi, Get Stuff scheme, which offers large discounts on other products to Pepsi-buyers as well as local .
The Coke Copy: Instead of creating a bond with the customers through small

but high-impact events, Coca-Cola chose to associate itself with national and international mega events like the World Cup Cricket, 1996, and world cup football 1998. But now coke is also entering into local actions. Coke is also trying to make their brand synchronize with localized events traditions and festivals. Coca-Cola new tag line in this advertisement is “Real shopping, Real refresher”. In this way Coke is copy Pepsi.


The Pepsi Process: Once of the strongest weapons in Pepsi’s armory is the

flexibility it has empowered its people with. Every manager and salesperson has the authority to take whatever steps he, or she, feels will make consumers aware of the brand and increase its consumption.
The Coke Copy: Flexibility is the weapon that Coca-Cola, fettered as it is by

the need for approvals from Atlanta for almost everything. In the past, this has shown up in its stubborn insistence on junking the franchisee network it had acquired from Parle; in its dependence on its own feedback mechanism over that of its bottlers;’ and on its headquarters-led approach.
PRICE The Pepsi process: Pepsi has consistently wielded its pricing strategy as in

invitation to sample, aiming to turn trial into addiction. It launched the 500 ml bottle in 1994 at Rs. 8 versus Thums Up’s Rs. 9, in April, 1996, its 1.5 litre bottle followed Coke into the marketplace at Rs. 30 – Rs 5 less than Coke’s .But it couldn’t continue the lower price positioning for long.
The Coke Copy: Initially, coke carbon-copied the strategy by introducing its

330ml cans in January 1996, at an invitation price of Rs. 15 before raising it to Rs. 18. By this time, it had realised that the Coca-Cola brand did not hold enough attraction for customers to fork out a premium. The 200ml Coke, launched so far in parts of eastern, western, and northern India, is priced at Rs. 5, lowering the entry-barriers. To really drive the market, as Coke wants to you must go down to Rs. 3’.



$28 BILLION 32% ` RS. 5OO CRORES RS. 300 CRORES 2400 13 18 4000 N.A. 6


$16 BILLION 70% RS. 250 C RS. 2,400C 140 NIL 53 1500 Rs 125 CR N.A.





COLA : 60% CLEAR LEMON : 4% Pepsi : 26.5 7-UP : 2.5% Thums-up : 17.5% Citra : 0.5% Coke :10% ORANGE : 16% OTHERS : 8% Mirinda : 7.5% Other Brands : 16.5% Fanta : 6% Gold Spot : 1% Crush : 1% CLOUDY LEMON : 12% Limca : 9% Mirinda lemon + Duke’s : 1.5% Schweppes lemon : 0.5%


The Cola Wars
There's little doubt that the most spirited and intense competition in the beverage world is between Coca-Cola and Pepsi. These two American companies long ago took their battle worldwide, and although there are other colas in the market, these giants occupy this high-stakes arena by themselves. The impact of Coke and Pepsi on popular culture is indisputable, and I have observed in my time managing this web site that America has not become jaded about the cola wars. The memorabilia, the jingles, the trivia - all still popular. So I am offering this page in an attempt to assuage a wee bit of the Coke and Pepsi thirst that is thriving on our planet.

Coca-Cola was invented and first marketed in 1886, followed by Pepsi in 1898. Coca-Cola was named after the coca leaves and kola nuts John Pemberton used to make it, and Pepsi after the beneficial effects its creator, Caleb Bradham, claimed it had on dyspepsia. For many years, Coca-Cola had the cola market cornered. Pepsi was a distant, nonthreatening contender. But as the market got more and more lucrative, professional advertising


became more and more important. These soda companies have been leading the way in advertising ever since.

Pepsi has definitely leaned towards the appeal of celebrities, popular music, and young people in television commercials, while Coke relies more heavily on images of happiness and togetherness, tradition, and nationalism, perpetually trying to cash in on its original lead. In a simplified sense, you could sum up the strategies as Coke: Old, Pepsi: New. In fact, as we will see, when Coca-Cola tried something new, it was disaster. The first magazine ad for Coca-Cola appeared in Munsey's in 1902. Advertisements began to appear on billboards, newspapers, and streetcars. Soon there were serving trays with images of people enjoying Coca-Cola, and glasses with the cola's name on them. At this time, Coca-Cola and Pepsi were served in drugstore soda fountains. In 1909, Pepsi used its first celebrity endorser, automobile race driver Barney Oldfield, in newspaper ads. In 1921, Pepsi went bankrupt, but continued to appear on the scene, although not nearly so successfully as Coca-Cola. In 1931, Pepsi went bankrupt again, but the new owner, Roy Megargel, would hit upon an idea that would finally give Coca-Cola some competition. In 1934, he marketed Pepsi in a 12-ounce bottle for a nickle. At the time, Coca-Cola was sold in a 6-ounce bottle for ten cents. Voila! Profits for Pepsi.


Pepsi racked up another first by airing the first radio jingle in 1939. It was so popular that it was played in jukeboxes and became a hit recordCoca-Cola hit the airwaves in 1941. In 1946, inflation forced Pepsi to increase prices. And in 1950, Pepsi offered a larger 26-ounce bottle to court the young American housewife. In the 1960's, the cola ad wars moved to television. Coca-Cola employed a host of celebrity singers to promote the product, including Connie Francis , Tom Jones, The New Beats, Nancy Sinatra, and The Supremes. As we moved through the years, both colas incorporated some of their best slogans ("Pepsi Generation" and "the Real Thing") into subsequent commercials. In the 1970s, market research showed that consumers preferred the taste of Pepsi over Coke. The Pepsi Challenge is still being conducted today. But Coke came up with what is arguably the best of all cola commercials, the 1971 I'd Like to Buy the World a Coke ad. This landmark was recalled in Christmas versions in 1983 and 1984, and a 1990 Super Bowl ad, which was enough to make some Baby Boomers weep with nostalgia. In the 1980's, Pepsi lined up the celebrities, starting with Michael Jackson, then Madonna, Michael J. Fox, Billy Crystal, Lionel Ritchie, Gloria Estefan, Joe Montana, and others. Coke signed on Michael Jordan, New Kids on the Block, Aretha Franklin, Elton John, and Paula Abdul. In 1985, responding to the pressure of the Pepsi Challenge taste tests, which Pepsi always won, Coca-Cola decided to change its formula. Bill Cosby was the pitchman. This move set off a shock wave across America. Consumers angrily demanded that the old formula be returned, and Coca-Cola

responded three months later with Classic Coke. Eventually, New Coke quietly disappeared. Pepsi, meanwhile, had its own flop, Crystal Pepsi, which was supposed to catch the strange wave of the times when everything colorless was clean and desirable (Zima, bottled water). And then there was Pepsi Lite with the lemony flavor and one calorie, introduced in 1975. Remember that one? Apparently they didn't expect us to because later they gave us Pepsi One, using the same concept, but a completely different taste. And, extending the idea even further, we are now getting Pepsi Twist, a new product with a twist of lemon flavor. In 1991, Ray Charles sang, "You got the right one baby, uh-huh!" Also in the 1990s, Cindy Crawford and the Spice Girls pitched Pepsi. And then Pepsi aired commercials featuring the aggravating little girl (Hallie Eisenberg) with her troubling male voice. In the new century, both colas continue to battle it out on the television screen. And celebrities continue to be important promoters. Recently, Pepsi has had commercials by Bob Dole and Faith Hill, among others.


It's clear in looking at the slogans over the years that Coke and Pepsi have very different targeting strategies. Coke is touting itself as the original, the authentic, and appealing to a sense of tradition, positioning itself as an integral part of daily American life. Pepsi, on the other hand, is promoting itself as something new, young, and hip, which seems a little odd after over 100 years. But Coke was first, after all. Pepsi has always targeted the youth market more aggressively than Coke.

1886 - Drink Coca-Cola 1904 - Coca-Cola Satisfies 1904 - Delicious and Refreshing 1905 - Coca-Cola Revives and Sustains 1905 - Good All the Way Down 1906 - The Drink of Quality 1906 - The Great National Temperance 1907 - Delicious Coca-Cola, Sustains, Refreshes, Invigorates 1907 - Cooling . . . Refreshing . . . Delicious 1908 - Sparkling - Harmless as Water, and Crisp as Frost 1909 - Delicious, Wholesome, Refreshing 1910 - It Satisfies 1910 - Quenches Thirst as Nothing Else Can 1911 - It's Time to Drink Coca-Cola 1911 - Real Satisfaction in Every Glass 1912 - Demand the Genuine - Refuse Substitutes

1913 - The Best Beverage Under the Sun 1913 - A Welcome Addition to Any Party - Anytime - Anywhere 1914 - Exhilarating, Refreshing 1914 - Demand the Genuine by Full Name 1914 - Pure and Wholesome 1916 - Just One Glass Will Tell You 1917 - Three Million A Day 1919 - Quality Tells the Difference 1920 - Drink Coca-Cola with Soda 1922 - Thirst Knows No Season 1922 - Thirst Can't Be Denied 1922 - Thirst Reminds You - Drink Coca-Cola 1923 - Refresh Yourself 1924 - Pause and Refresh Yourself 1925 - Six Million A Day 1925 - The Sociable Drink 1926 - Stop at the Red Sign 1927 - Around the Corner from Anywhere 1928 - A Pure Drink of Natural Flavors 1929 - The Pause that Refreshes 1930 - Meet Me At the Soda Fountain 1932 - Ice-Cold Sunshine 1933 - Don't Wear a Tired, Thirsty Face 1934 - Carry a Smile Back to Work 1935 - All Trails Lead to Ice-Cold Coca-Cola 1936 - What Refreshment Ought to Be 1936 - The Refreshing Thing to Do

1937 - America's Favorite Moment 1937 - So Easy to Serve and So Inexpensive 1938 - The Best Friend Thirst Ever Had 1938 - Pure Sunlight 1938 - Anytime is the Right Time to Pause and Refresh 1939 - Coca-Cola Goes Along 1939 - Make Lunch Time Refreshment Time 1939 - Makes Travel More Pleasant 1939 - The Drink Everybody Knows 1939 - Thirst Stops Here 1940 - Bring in Your Thirst and Go Away Without It 1941 - Completely Refreshing 1942 - Refreshment That Can't Be Duplicated 1942 - Whoever You Are, Whatever You Do, Wherever You May Be, When You Think of Refreshment, Think of Ice-Cold Coca-Cola. 1943 - The Only Thing Like Coca-Cola is Coca-Cola Itself. It's the Real Thing 1943 - A Taste All Its Own 1943 - That Extra Something 1944 - How About a Coke 1945 - Passport to Refreshment 1945 - Whenever You Hear "Have a Coke," You Hear the Voice of America 1947 - Coke Knows No Season 1947 - Serving Coca-Cola Serves Hospitality 1948 - Where There's Coke, There's Hospitality 1949 - Coca-Cola . . . Along the Highway to Anywhere

1950 - Help Yourself to Refreshment 1951 - Good Food and Coca-Cola Just Naturally Go Together 1952 - What You Want Is a Coke 1953 - Dependable as Sunrise 1954 - For People on the Go 1955 - America's Preferred Taste 1956 - Coca-Cola - Making Good Things Taste Better 1956 - Feel the Difference 1957 - Sign of a Good Taste 1958 - The Cold, Crisp Taste of Coke 1959 - Be Really Refreshed 1960 - Relax With Coke 1961 - Coke and Food - Refreshing New Feeling 1962 - Coca-Cola Refreshes You Best 1963 - Things Go Better With Coke 1965 - Something More Than a Soft Drink 1966 - Coke . . . After Coke . . . After Coke 1970 - It's the Real Thing 1971 - I'd Like to Buy the World a Coke 1974 - Look Up, America 1976 - Coke Adds Life 1979 - Have a Coke and a Smile 1982 - Coke Is It! 1984 - Just For the Taste of It (Diet Coke) 1985 - Just For the Free of It (Caffeine Free Coke) 1985 - We've Got a Taste For You (New Coke) 1985 - America's Real Choice (Coca-Cola Classic) 1986 - Catch the Wave (New Coke)

1986 - Red, White and You (Coca-Cola Classic) 1987 - You Can't Beat the Real Thing 1989 - Can't Beat the Feeling 1990 - Can't Beat the Real Thing 1993 - Always Coca-Cola 1993 - Taste it All

1903 - Exhilarating, Invigorating, Aids Digestion 1907 - Original Pure Food Drink 1909 - Delicious and Healthful 1915 - For All Thirsts - Pepsi-Cola 1919 - Pepsi-Cola - It Makes You Scintillate 1920 - Drink Pepsi Cola. It will satisfy you. 1928 - Peps You Up! 1932 - Sparkling, Delicious 1934 - Refreshing and Healthful 1939 - Twice As Much For A Nickel Too 1943 - Bigger Drink, Better Taste 1949 - Why take less when Pepsi's best? 1950 - More Bounce to the Ounce 1950 - The Light Refreshment 1954 - Refreshing Without Filling 1958 - Be Sociable, have a Pepsi 1961 - Now It's Pepsi, For Those Who Think Young


1963 - Come Alive! You're In the Pepsi Generation 1967 - Taste That Beats the Others Cold 1967 - Pepsi Pours It On 1969 - You've Got a Lot to Live and Pepsi's Got a Lot to Give 1973 Join the Pepsi People Feelin' Free 1975 - Have a Pepsi Day 1978 - Catch That Pepsi Spirit 1981 - Pepsi's Got Your Taste For Life! 1983 - Pepsi Now! 1984 - Pepsi, the Choice of a New Generation 1992 - Gotta Have It 1993 - Be Young, Have Fun, Drink Pepsi 1995 - Nothing else is a Pepsi 1999 - The Joy of Cola





Arch rivals plan salvos of new diet colas, Pepsi ONE and Coca-Cola Zero. March 22, 2005: NEW YORK (CNN/Money) - The beverage aisle is about to get more crowded as Pepsi and Coca-Cola debut new diet colas. Coca-Cola is adding a fourth diet cola to its line this June with Coca-Cola Zero, with no calories, the company announced Tuesday. And this spring Pepsi is relaunching its one-calorie Pepsi ONE with Splenda sweetener rather than aspartame. Reformulated Pepsi One, available on shelves and coolers in late March, is part of Pepsi's focus on diet soft drinks this year, said Katie Lacey, PepsiCola North America's vice president of carbonated beverages, in a statement

While for Coke, "Coca-Cola Zero is exactly what young adults told us they wanted," said Dan Dillon, vice president, Diet Portfolio, Coca-Cola North America, in a statement. Apparently America's youth wanted a cola sweetened with sugar subsaspartame and acesulfame potassium. The new cola will not replace Diet


Coke, favored by a different group of cola swiggers, according to the company. Both Pepsi's (up $0.08 to $52.64, Research) and Coke's (up $0.06 to $41.66, Research) new diet brews are aimed young adults, mostly male, according to Adage.com. Apparently, more men are gulping reduced-calorie and zerocalorie beverages to stay trim, the article says. Along with Diet Coke and the new Zero, Coke's diet selection includes a Splenda-sweetened Diet Coke, Diet Coke with lime and C2, launched last year. For the curious, Coca-Cola Zero will auction off a sample pack of the cola on eBay in April.

Coke vs. Pepsi: the new cola wars
NEW YORK (CNN/Money) - The Beatles or the Backstreet Boys? Star Trek or Star Wars? Yankees or Mets? They say you must like either one or the other.

Shares of Coca-Cola (KO: Research, Estimates) and PepsiCo (PEP: Research, Estimates) have been on a tear this year, with each posting solid gains in an otherwise dismal market. Coke has surged 20.3 percent year to date while Pepsi is up 7.2 percent. The two currently are trading just a hair off their 52-week highs.


But some analysts and fund managers think the trendier Pepsi has more fizz left in its stock than Coke. Coca-Cola is launching a new product, Vanilla Coke, next week (May 15) while Pepsi recently announced that it will start selling a berry flavored cola, Pepsi Blue, in August. With Vanilla Coke, the company seems to be banking on nostalgia. (John Travolta's character in "Pulp Fiction" ordered a Vanilla Coke at a 50's themed diner, for example.) Pepsi Blue, on the other hand, seems to be a concerted attempt to reach out to the hipper, younger demographic that drinks Pepsi's Mountain Dew. And embracing that demographic has worked. The launch of Code Red, a cherryflavored version of Mountain Dew, last year helped Pepsi increase its market share. According to the Beverage Market Corporation, unit volume for all of Pepsi's soda brands (including Diet Pepsi and Mountain Dew for example) increased 1.3 percent in 2001 while volume for Coke's carbonated beverage brands (Diet Coke, Cherry Coke and Sprite among others) declined by .2 percent. "This is a mistake for Coke. Pepsi is going after the right market. Younger audiences are going to buy more of Pepsi Blue. I don't see any edge in vanilla," says Ted Parrish, co-manager of the Henssler Equity Fund. As of April 30, Pepsi was the fund's second-largest holding. The fund does not own Coke.




Regardless of which soda you like better though, Pepsi seems the better value than Coke right now. Coke is trading at a nearly 20 percent premium to Pepsi based on 2002 P/Es even though the two companies' earnings growth rates are nearly identical. (Pepsi's are actually a shade higher.) And when you look at revenues, the gap is even more dramatic. Coke is trading at 7 times estimated 2002 sales while Pepsi is trading at 3.5 times 2002 revenue estimates. Both companies are expected to post slight declines in sales this year and an increase of about 4 percent in 2003. Due to this disparity in valuation, Jeff Kanter, an analyst with Prudential Securities, says he has a "buy' rating on Pepsi and "hold" on Coke. Prudential does not do investment banking. To be sure, Coke is still the market share leader in soft drinks. One of the main reasons the stock has outperformed Pepsi this year was because it reported a better than expected gain in unit volume in the first quarter. And the company has taken steps to cement its carbonated beverage lead as well gain ground in the bottled water market. (Coke and Pepsi both have their own brands of water, Dasani and Aquafina, respectively.) On Tuesday, Coke announced that it was acquiring the Seagram's line of mixers, tonic, ginger ale and seltzer from Diageo and Pernod Ricard. And last month, Coke entered into an agreement with Group Danone to distribute Evian bottled water in North America.


The term soft drink was originated to distinguish the flavored refreshment from hard liquor. Soft drink was flavored to change the habits of earlier Americans who used to have hard liquor. The fruits and vegetable juices are not considered soft drinks. Pepsi is a pure soft drink, which is enjoyed in our 195 countries. It is made of artificial flavors and contains no fruit juice or fruit pulp.

How soft drinks are made:
Soft drink consists of carbonated water and syrup. Adding carbonated gas to water under pressure produces carbonated water. The gas makes the water bubble and fizz in most cases. Syrup is made of a concentrate and sweetener. A concentrate is a blend of flavor and acid. In concentrate for most soft drinks also include coloring. The concentrate contains a unique blend of ingredients, which give Pepsi its distinctive flavor. Syrup can be also being prepared directly from individual ingredients. Carbon dioxide gas gives beverage its sparkle and tangy taste and prevents spoilage. While it has not been conclusively proved that carbonation offers a direct medical benefit, carbonated beverage are also used to alleviate post operative nausea when no other food can be tolerated. Carbon dioxide is supplied to soft drinks by manufactures in a liquid form maintained under approximately 1,200 pounds per square inch pressure in heavy steel containers.


Many of the flavorings found in soft drinks come from natural sources such as fruits juices and oils obtained from roots, citrus fruit peels, and leaves of various plants. Some flavoring are artificial, but a similar to natural flavoring in taste. Citric acid and phosphoric acid give soft drink a tart taste. Caramel is usually used as a coloring in cola drinks. The sweeteners may come from maize, sugar beet or sugarcane. Artificial sweetener, such as saccharine and aspartame is used in Diet Pepsi and Diet Coke. The mixing is carried out under the highest standards of quality control and accordingly to precise instructions in order to insure that every consumer always receives a product of the same trusted quality. The bottling of Pepsi in modern plants such as there are in India is carried out at the rate of 600 bottles a minutes. Pepsi is approved by the National Health Authorities of every country in which it is sold.

Pepsi is supplied in  Returnable glass bottles (200 ml, 250 ml, 300 ml, 500 ml, 1 which is supplied in molded plastic shells.  1.5 litre PET bottles,  330 ml of cans,  PMX machines (Fountain Pepsi) Fountain Pepsi (F P) Dispenses soft Drinks in plastic cups. There are two methods of vending soft drinks. lt.)


1. Pre-mix system - In the premix system, the finished beverage is
prepared by the soft drink manufacturers and filled into 5 to 10 gallon stainless steel tanks. The tanks of the beverage are attached to the vending machine where the beverage is cooled and dispensed.

2. Post-mix system - In post-mix system the vending machine has its
own water and carbon dioxide supply. The water is supplied through Aqua Guard purifier and is carbonated as required by carbon dioxide cylinder. It is then mixed with concentrate or flavored syrup which is kept in BIB (Bag in Box) as it is dispensed into the cup. Pepsi has post mix vending machines and coke has pre mix vending machines.

Cans & Bottles - Among the different packages in the market in the next
couple of years could be cans and pet bottles - apart from the standard glass bottles. One of the standard packages that one is likely to see in the coming years is buying more at lower price. Pepsi introduced 200 ml bottles of Pepsi at the price of Rs.6. It was an instant hit while packages of those kinds are also being worked out keeping in view of the rural market. But it could also lead to the killing of the standard 300 ml size bottles that is in vogue now. The consumer would get a choice of soft drink at a cheaper and an affordable price - even if it means breaking of certain standards shapes and sizes of the packages. The broad strategies of both penetrating the market are still being made. And the amount of thought that is going into it can be made out from the very fact that the manufacturers are thinking of such innovations as the “picnic packages” of the brand for those on holiday trip.


The battle will be engrossing as packages will be brought to the market and be pulled by the competing rivals. There would be price wars and competitions on qualities.

In the US, 55% of the carbonated soft drink (CSD) is sold today in returnable bottles, 30% on one-trip containers and 15% through vending machines and fountain. In other parts of the would, Pepsi are sold mainly in returnable bottles. Pepsi in cans are more popular in countries such as US, Canada, Australia, Philippines and England. Canned Pepsi is also sold in India.


Brands –
The current Indian market consists of seven-flavor segment. Cola segment is by far the most widely consumed soft drinks.



In addition to these segments, Pepsi has developed wide range of soft drinks such as Diet Pepsi, Caffeine Free Pepsi and low sodium Pepsi, Sugar Free -Pepsi Max.


These are some of the unique characteristics of the products: 1. 2. 3. 4. 5. Package is returnable and vulnerable to breakage. Weight of package is twice as much as that of the product. Has a seasonal demand resulting in partial idling of the distribution network. Demands highlight intensive availability of the product with very low dealer index essential on account of “impulse demand”. Occupies more shelf space (or cooler space) per a rupee worth of investment than most other brand product. This factor, coupled with the return ability of the container, involves a very high level of service frequency. 6. Ratio of distribution costs to selling price is higher than for any other branded mass consumption product. All these point to the fact that a penetrating distribution network coupled with efficient feeding are the only means to higher sales.


Once a day Twice a day Once a week Other 25% 20% 5% 50%

60% 50% 50% 40% 30%25%20% 20% 5% 10% 0%
O n c e Taw ic eO an c e O t h e r a day day w eek

O nce a day T w ic e a d a y O nce a w eek O th e r




Pepsi Coke

60% 40%

80% 60% 40% 20% 0%

60% 40%

P epsi


P e p s iC o k e
Figure – 2


More Popular Packaging Taste Price 10% 10% 70% 10%

80% 60% 40% 20% 0% 10% 10%


10% P r ic e

M o re P a c k a g in T a s t e g P o p u la r

M o r e P o p uPla rc k a g in g s t eP r ic e a Ta
Figure – 3


Yes No 55% 45%

60% 50% 40% 30% 20% 10% 0%

55% 45%

Y es Y es No


Figure – 4



Television Advertising Newspaper Advertising Outdoor Advertising Sales Promotion 50% 40% 30% 20% 10% 0% 5% 20% 45% 30%

45% 5% 20% 30%

T e le v is io n A d v . s p a p e r O u tvd o o r A S v le s P r o m o t io n New Ad da T e le v is io n A N ev w s p a p e r O udtv o o r A Sdav le s P r o m o t io n d . A d

Figure – 5


Yes No 51% 49%

Y es No 52% 51% 50% 49% 48% Y es No
Figure – 6




Pepsi Co. Coke Co. 60% 40%

80% 60% 40% 20% 0%

60% 40%

P epsi Co.

Coke Co.

P e p s i C o .o k e C o . C
Figure – 7


Pepsi Co. Coke Co. 70% 30%

80% 60% 40% 20% 0%



P epsi Co.

Coke Co.

P e p s i C o .o k e C o . C
Figure – 8


Pepsi Co. Coke Co. 55% 45%

60% 50% 40% 30% 20% 10% 0%

55% 45%

P epsi Co.

Coke Co.

P e p s i C o .o k e C o . C
Figure –9


Pepsi Coke Pure Drinks 56% 35% 9%



56% P e p s iC o k e P u re D rin k s
Figure - 10



Pepsi Coke Local Brand

44% 51% 5%




P epsi Coke L o c a l B ra n d
Figure - 11



In a survey done by A & M magazines on the best marketing companies in India. Pepsi and Coca-Cola were also entered. The results were as follows: Pepsi Coca-Cola The results of 95 were : Pepsi Coca-Cola 7th 11th 4th 11th

This shows that both the companies are paying more attention to the marketing of their products. Pepsi is higher up on the scale than Coca-Cola. We can see that by the brilliant advertising done by Pepsi, which can be seen on every hook and corner of NCR. The consumers also prefer Pepsi advertisements and other activities of Pepsi, to that of Coca-Cola.


The Indian soft drinks market is at 140 million cases per year. This is very low, even as compared to Pakistan and Bangladesh. All these factors together have contributed to a 20% growth in the soft drinks industry.. If this demand continues to grow at 20% grow at 20% annually, within 10 years the volumes could reach 1 billion cases. This kind of growth is the reason for the entry of the two giants of the soft drink industry of the world. • Coca-Cola • Pepsi Coca-Cola and Pepsi together control 97% of the 4 entire Indian markets. The rest of the 3% is shared by companies like Cadbury-Schweppes and Campa-Cola. The total no. of case sold is 140 million of these 77 million cases of Cola drinks are sold and 63 million of non-cola drinks. There is a rapid increase in the sale of cola soft drinks. Whereas in 1990, they accounted for a third of all soft drinks sold, now their share is well over half. Also cola sales are growing at a faster rate than non-colas. One of the reasons for this could be the aggressive marketing strategies for Cola drinks by Pepsi and Coca-Cola. The race to quench the great Indian thirst had design.


Market Share Percentage in NCR -2007


55% 35%


Parle & Coke

Pure Drinks

Pepsi findings:
Pepsi is the largest selling soft drink in India today. In NCR it has 55% of the market share. In India it has 43% of the market share making it the largest selling soft drink, but the second largest company in terms of sales. The sales of Pepsi is approximately Rs. 1,000 crore annually in India of this only about Rs. 30 crore annually is credited to the foods section of Pepsi. The rest is all earned by the soft drinks. The soft drinks in Pepsi Foods LTD include: 1. Pepsi Cola 2. Mirinda Orange 3. 7-Up 4. Mirinda Lemon


The main advantage the Pepsi has over its nearest competitor i.e., Coca-Cola is that of its was the first multinational to enter India, in the soft drinks sector. Pepsi officials and ‘Dial-a-Pepsi’ scheme to grow the market, instead of giving discounts at the retail level. Another point which attributed to Pepsi’s success is the bottling operations. Pepsi does most of its bottling on its own. Another significant investment of Pepsi has been fountains. Fountains have considerably increased sales of Pepsi, as they have offered consumers a whole new way to experience soft drink. According to a study done, 80% of all soft drinks are consumed on premise, at the point of purchase, rather than at home; thus the fountain initiative has paid off. Thus we see that Pepsi has followed aggressive marketing strategies making themselves get into the minds of the consumer by being visible inside and outside the consumers home by way of television, radio Newspapers, hoarding, sales-promotion schemes, etc. Pepsi has been voted the number one customer service company across categories in terms of regularity, availability responsiveness and initiative.


Innovative and exciting offers The respondents were asked to compare between PepsiCo and Coca-Cola [I] Ltd. in terms of who comes up with innovative and exciting offers, or rather things which are lively and interesting to participate. 50% of the respondents, replied in favour of PCI while 30% responded in favour of CCI. 17% of the respondents thought that both were equally good and it varied with time, place and occasions. 3% of the respondents were not aware of all the activities and were modest to admit it. Quick and responsive to different occasions and events. Comparing PepsiCo and Coca-Cola[I]Ltd, 55% of the respondents replied that it was undoubtedly PepsiCo. They supported their statement with reasoning, saying so that PepsiCo was first to associate with India’s 50 years of independence. On the other hand 22% of the respondents felt that Coca-Cola[I]Ltd. is not trailing back. It sponsors mega events like different Cricket tournaments, Olympic games, World Cup Football etc.19% of the respondents came up with a more balanced answer. They said if one of the companies sponsors one event its sure that the other will definitely go on for the next. Its a tough tussle and is really difficult to demarcate today.

Future leader in the market
When the respondents were asked about their perceptions, as who would be the future leader in the market, 42% of the respondents replied in favour of

PepsiCo. According to them PepsiCo has entered Indian market prior to Coca-Cola [I] Ltd. and has strong foothold now. Above that it is innovative and there is freshness in its Ads. The only thing required is to maintain its position.38% of the respondents claimed that after taking over Parle Industries Coca-Cola [I] Ltd. is in a comfortable position. If it can promote brands of Parle Industries like Thums Up and Limca which has a substantial market in India, it may turn out to be the leader in future. Again 15% of the respondents feel that both the companies are fighting tooth and nail for supremacy. The one which commits an error in its strategy will trail behind.


Pepsi is the market leader in terms of soft drinks in India, but comes second to Coca-Cola which consists of Coca-Cola and park brands. However in NCR it is the market leader. Pepsi’s main target is obviously to be the market leader and leave its nearest competitor, Coca-Cola, far behind. To achieve this Pepsi seems to be relying on mass advertising. They spend about 50-60 crore rupees annually on marketing activities. The consumer is bombarded with Pepsi advertisements, sign, logo’s etc., everywhere. Pepsi’s core market is the young –adult and Pepsi is taking great measures to change the perception of these young-adults., Pepsi wants that these consumers should associate all colas as Pepsi, the brand Pepsi and cola should be synonymous with each other. This they are trying to do by getting the heros of these consumers to endorse their product e.g. Sachin Tendulkar and also by advertising for and by youngsters. Pepsi drinks are available in almost the whole of India, this shows the importance paid to distribution. Brand loyalists are very few in the market. Thus the drink should be easily available, so that consumers cannot shift their preferences.

For the purpose of the study, questionnaires were prepared for the Consumers. Care was taken to interview all types of consumers, i.e.,: a. Different age groups b. Males and females


c. People from different localities, etc. In all about 60 consumers were interviewed. The conclusions that one can draw from these answers provided by the consumers showed that marketing activities do form a major part of the decision. One thing that was common amongst all the consumers who were once a day or once a week. The most important factor the influences a customer while buying a soft-drink was taste. This was true for all the consumers who were interviewed. The rest of the conclusions as deducted from the questionnaires are as follows: The younger generation preferred soft drinks to the older generation.
a. Children up to 15 years of age liked to have soft drinks upto 2-3 times a

b. Young adults liked to have soft drinks up to 1-2 times a day.

c. Adults liked to have soft drinks about once or twice a week. Children preferred Coca-Cola Fanta, Mirinda orange. Young adults liked Pepsi. The older generation preferred Coca-Cola, Limca & Mirinda Lemon. The reason given for choice of facourite soft drink was taste and easy availability. Only if the consumer liked the taste of drink, he would have it again.95% of the consumers felt that marketing strategies of the company did affect the sales of their soft-drink. Marketing strategies made the consumer try a drink for the first time. The second time round it was the consumers choice himself and not strategy could affect that. Youngsters were more acceptable to change. They tried


different drinks, Cola and non-Cola. Adults stick to one and they prefer drinks that do not affect their health, like Limca. Major number of people found television advertising to be the most effective. Young and the old, all liked to watch the advertisements on television. Sponsoring events, outdoor advertising and sales promotion schemes were second choice of the consumers. Under television advertising, Pepsi came in as the number 1 favorite of the people the advertisement of Shah-Rukh Khan and the dog was the favorite of the consumers. Their new advertisement of Mirinda Lemon is also lifted by the people. The advertisement that came in second was, the Coca-Cola advertisement of the people Cricket and the song Must-Kalander going on at the back. These, advertisement remained most in the minds of the people.Most of the consumers felt that Pepsi was the market leader in the soft-drink industry, in NCR as well as in India. Whereas while Pepsi is the leader in NCR, in India Coca-Cola is number one. 99% of the consumers interviewed felt that the marketing strategies of the Coca-Cola and Pepsi have helped them in attaining the huge market share that they possess. Women and children prefer cans as compared to men. These are the major conclusion that can be drawn about a consumers’ behavior. Companies must take the initiative of finding out the habits of the consumers and then changing them, in their favor.


Soft drinks are an impulse product. When a person is thirsty, he would first think of water or tea. Some even would prefer ‘Nimbu Pani’. The Indian population is the largest in the world today; there can be no other country in the world, which provides so much of an opportunity for the softdrink manufacturers. The Indian soft drink market is at 140 million cases per year, this is very low. Thus the consumption of soft drink can go up. Sinc118+e the entry of Coca-Cola into the country the industry is growing at a rate of 20% annually. If this rate is maintained, then by the year 2005 the market of soft drink would be 1 billion cases annually. However Coca-Cola wants to accomplish this feat by themselves. To do this the industry has to take certain steps. All the companies are fighting to get a major share of this growing market. They should all try to increase the total market along with their individual shares. On the basis of all the field work and table work done, some suggestions can be made, which may help the company in increasing the total market as well as the sale of the companies. The various suggestions that can be made are as follows:Soft drinks retail at prices between Rs. 6 and Rs. 10. These are expensive when measured against purchasing power. According to one study, it takes an Indian 50 minutes of work to be able to buy a bottle in other countries, the norm is five minutes. Thus to increase the total market of soft drinks, manufactures should try and decrease the prices, so as to increase sales.


Availability is a major factor, which makes the consumer buy a soft drink. Soft drinks should be made available more readily than present. There are only 300, 000 retailers stocking soft drinks in India. Thus retailing outlets should be increased. Also related to this point, is vending machines. In developed machines, vending machines are kept in all consumer areas, like super markets, schools, amusement parks, local markets, etc. These tempt a person into buying the soft drink. So if vending machines are put in strategic areas, it would definitely increase consumption of soft drinks. Soft drink cans which are very convenient, as the consumer can take them anywhere, unlike a bottle, are very expensive retailing from Rs. 15-Rs. 18. To increase sale of cans, this price should be brought down. Innovations increase sales of company. For e.g. fountain Pepsi increased sales of Pepsi Cans increased sales of Coca-Cola. Thus the companies should constantly come out with innovative ideas.Example-300 ml plastic bottles, which the consumer can take with him, unlike the glass bottles, which he has to return. Plastic bottles can even be used again by households for various purposes. The companies should conduct studies to get to know about consumer habits. For e.g. Coke knows that Americans see 69 of its commercials every years , put 5.2 ice cubes in a glass and prefer cans to pop out of vending machines at a temperature of 35 degrees. If the companies know all this and more about Indian consumer behaviour, it could 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. Companies could have commercials which show people enjoying their drink


with a good meal, so that consumers associate drinking soft drinks while having food. Companies should try to educate the consumer about the health related subject. For e.g:a) Limca is recommended to patients by doctors.

b) Cola drinks are known to be very fattening , But in fact cola drinks contain no calories from fat they contain calories from sugar which can be easily burned off. The soft drink cans and plastic bottles should mention the calories and other related information on the packing. Companies should try to build high brand equity. This provides a number of advantages to the company. a) The company enjoys reduced marketing costs because of high level of consumer brand awareness and loyalty. b) The company will have more trade leverage in bargaining with distributors and retailers since the customer expects them to carry the brand. c) The company can change a higher price than its competitors because the brand has higher perceived quality. d) The company can more easily launch brand extension. e) Above all, the brand offers the company some defence against fierce price competition. The companies should go in for diversification


Once the brand is known, it is easier to sell more of its products. For e.g. Coca-Cola clothes have sold about $100 million worth of clothes and accessories. This would increase revenues of the company. The companies should not have competitor myopia. It is more often the latent company than the current competitor who busies the company. Pepsi and Coca-Cola are so busy fighting with each other, that they have left the non-cola sector open for Cadbury-Schweppes. Advertising is a way building brand image. It does not promote quick selling. Thus companies should used advertising only for long advertising can be used for: a) Brand image building b) Reminder advertising :reminding people to buy these drinks. c) Reinforcement advertising-Telling people that they have made the right choice. Television advertising seems to make a impact on the consumers (based on questionnaire answers) so companies should concentrate more on television advertisements. Sales promotion tools create a stronger and quicker response. Thus sales promotion tools such as coupons, contests, premiums and the like should be used to dramatize product offers and to boost sales. Sales-promotion effects are usually short run and induce the people to purchase soft drinks, now. Coca-Cola and Pepsi have taken up sponsoring of events on a major scale. All kinds or events, whether big (Wills Worked cup) or small (college contests) have either Pepsi or Coke banners of sponsorship. The


effectiveness of this can be questioned. Whether these activities increase sales or not is a big huge question mark. PepsiCo and Coca Cola (I) Ltd. should reduce their massive spending on sponsoring events and try and channel this money into more productive activities, like innovative packaging etc. It is recommended that company should introduce more and more customer oriented schemes and contexts. For e.g. Pepsi’s new campaign “Pepsi cool mal” in which they are giving free gifts to their customers. The company should maintain a small group of “missionary sales man” whose functions should be to guide distributors and retailers, keep a constant watch over the prevailing situation to provide the continuous feedback to the company. It is also recommended that companies should launch soft drink in small pack 200 ml and 150 ml. Thus we see that there various steps which can be taken by the companies to increase their sales and to increase the total market share.



Marketing Management- By Philip Kotler Business world Out look Times of India Course pack of Rai university www.Pepsico.indialtd

 Research methodology- By C. R. Kothari






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