Competitive analysis between coke and pepsi

EXECUTIVE SUMMARY
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 Coca-Cola 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 two brands were selected on the basis of there uses and noticeciability. One of the selected
brands is 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
INTRODUCTION:
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. They 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.
SOFT DRINK INDUSTRY: AN OVERVIEW
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 legeent Unaware the pharmacist has given birth to a caramel 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
was a daily consumption item, 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. battles 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 Banaras, 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 dhere 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 markets 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
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 it because generally the
consumption of any soft drink is an impulse decision and not predetermined one.
VISIBILITY
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.
COOLING
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.
RANGE
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.
HISTORY OF COCA-COLA
Jon Styth Pemberton first introduced the refreshing taste of Coca-Cola in Atlanta, Georgia it was May
1861 when the pharmacist concocted caramel colored syrup in three- legged brass kettle in his backyard.
He first distributed the new product by carrying Coca-Cola in a jug coin enjoys in a glass of Coca-Cola at
the soda fountain. Whether by design or accident, carbonated water was teamed with the new syrup,
producing a drink that was proclaimed "Delicious and Refreshing".
Dr. Pemberton's Partner and bookkeeper, Mr. Frank Robinson, suggested the name and penned as
"Coca-Cola" in the unique flowing script that is still famous worldwide today.
Dr. Pemberton's sold 25 gallons of syrup, shipped in bright Red wooden kegs. Red has been a distinctive
color associated with the No.1 soft drink brand ever since. For his efforts, Dr. Pemberton grossed $ 50
and spent $ 73.96 on advertising, by 1891, Atlanta chemist as a G.Canler had acquired complete
ownership of the Coca-Cola business.
He purchases it from the Dr.Pemberton family for $ 2300. With in 4 year his merchandising flair helped to
expand the consumption of Coca-Cola to over $25 million. Robert W. woodruff become the president of
the Coca-Cola company in 1923 and his more than six decades of leadership took the business of
commercial success making Coca-Cola an institution the world over. Coca-Cola begins as a never tonic,
but candy merchant Joseph A. Biedenharn of Mississippi was looking for awry to serve refreshing
beverages. He responded to this demand began offering bottle Coca-Cola using syrup shipped from
Atlanta, during a hot summer in 1894.

1894 ... A modest start for a bold idea

In a candy store in Vicksburg, Mississippi, brisk sales of the new fountain beverage called Coca-Cola
impressed the store's owner, Joseph A. Biedenharn. He began bottling Coca-Cola to sell, using a
common glass bottle called a Hutchinson. Biedenharn sent a case to Asa Griggs Candler, who owned the
Company. Candler thanked him but took no action. One of his nephews already had urged that Coca-
Cola be bottled, but Candler focused on fountain sales.

1899 ... The first bottling agreement

Two young attorneys from Chattanooga, Tennessee believed they could build a business around bottling
Coca-Cola. In a meeting with Candler, Benjamin F. Thomas and Joseph B. Whitehead obtained exclusive
rights to bottle Coca-Cola across most of the United States (specifically excluding Vicksburg) - for the
sum of one dollar. A third Chattanooga lawyer, John T. Lupton, soon joined their venture.

1900-1909 ... Rapid growth

The three pioneer bottlers divided the country into territories and sold bottling rights to local
entrepreneurs. Their efforts were boosted by major progress in bottling technology, which improved
efficiency and product quality. By 1909, nearly 400 Coca-Cola bottling plants were operating, most of
them family-owned businesses. Some were open only during hot-weather months when demand was
high.
1920s ... Bottling overtakes fountain sales
As the 1920s dawned, more than 1,000 Coca-Cola bottlers were operating in the U.S. Their ideas and
zeal fueled steady growth. Six-bottle cartons were a huge hit after their 1923 introduction. A few years
later, open-top metal coolers became the forerunners of automated vending machines. By the end of the
1920s, bottle sales of Coca-Cola exceeded fountain sales.

1920s and 30s ... International expansion

Led by longtime Company leader Robert W. Woodruff, chief executive officer and chairman of the Board,
the Company began a major push to establish bottling operations outside the U.S. Plants were opened in
France, Guatemala, Honduras, Mexico, Belgium, Italy, Peru, Spain, Australia and South Africa. By the
time World War II began, Coca- Cola was being bottled in 44 countries.

1940s ... Post-war growth

During the war, 64 bottling plants were set up around the world to supply the troops. This followed an
urgent request for bottling equipment and materials from General Eisenhower's base in North Africa.
Many of these war-time plants were later converted to civilian use, permanently enlarging the bottling
system and accelerating the growth of the Company's worldwide business.

1960s ... New brands introduced

Following Fanta� in the 1950s, Sprite�, Minute Maid�, Fresca� and TaB� joined brand Coca-Cola in
the 1960s. Mr. Pibb� and Mello Yello� was added in the 1970s. The 1980s brought diet Coke� and
Cherry Coke�, followed by POWERADE� and DASANI� in the 1990s. Today hundreds of other brands
are offered to meet consumer preferences in local markets around the world.

1970s and 80s ... Consolidation to serve customers

As technology led to a global economy, the retailers who sold Coca-Cola merged and evolved into
international mega-chains. Such customers required a new approach. In response, many small and
medium-size bottlers consolidated to better serve giant international customers. The Company
encouraged and invested in a number of bottler consolidations to assure that its largest bottling partners
would have capacity to lead the system in working with global retailers.

1990s ... New and growing markets

Political and economic changes opened vast markets that were closed or underdeveloped for decades.
After the fall of the Berlin Wall, the Company invested heavily to build plants in Eastern Europe. And as
the century closed, more than $1.5 billion was committed to new bottling facilities in Africa.

21st Century ...

The Coca-Cola bottling system grew up with roots deeply planted in local communities. This heritage
serves the Company well today as people seek brands that honor local identity and the distinctiveness of
local markets. As was true a century ago, strong locally based relationships between Coca-Cola bottlers,
customers and communities are the foundation on which the entire business grows.
COCA -COLA COMPANY PROFILE
Keeping in view of tapping the Indian soft drink market and also developing soft drinks as a drinking
product among Indians. The Coca-Cola in India has setup an independent organizations which is H.C.C &
B.C.C with a capital of 350 U.S.$ each by virtue of sellout decision of the passed managing director Sh.
S. C. Aggarwal.
Hindustan Coca-Cola bottling (N-W) Pvt. Ltd. Najibabad took the complete possession of this plant, land,
machinery, & intellectuals on February 14' 1998 and since then H.C.C, looking after all its affairs under
company owned bottling plant to establish integrated marketing system in the area.

CORE BRANDS:
Coca-Cola: Developed in a brass pot in 1886, coca-cola is the most recognized and admired trademark
around the globe. Not to mention the best selling soft drink in the world.
Sprite: In 1961, a citrus-flavored drink made its U.S debut, using "Sprite Boy "as inspiration for its name.
This elf with silver hair and a big smile was used in 1940s advertising for Coca-Cola. Sprite is now the
fastest growing major soft drink in U.S and the world's most popular lemon-lime soft drink.
Fanta: The name "fanta " was first registered as a trademark in Germany in 1941, when it was used for a
few year for a soft drink created from available materials and flavors . The name was then revived in 1955
in Naples, Italy, when it was used for the:" fanta "orange drink we know today. It is now the trademark
name for a line of flavored drinks around the world.
Diet coke: The extension of the coca-cola name began in 1982 with the introduction of diet coke (also
called coca-cola light in some countries). Diet coke quickly becomes the number - one selling low -calorie
soft drink in the world.

FABULOUS FACTS ABOUT COCA-COLA

1. The world's largest spherical coca-cola sign is in Nagoya, Japan a top the dial - Nagoya building in
front of the Nagoya railway station. The sing is a double sphere constructed from more then 46
tone of steel, more 940meter of neon tubing, and more then, 879 light bulbs. The outer shape
features the coca-cola logo and contour bottle, while the inner sphere portrays a comic scene with
twinkling planets and stars.
2. One of the world's largest signs for coca-cola is located on a hill called "ELHACHA" in America,
Chile. It is 400 feet wide and 131 feet high and is made from 70,000, 26 ounce bottles.
3. The first out door paint sign advertising coca-cola still exists. It was painted in 1894 in Cartersville,
Georgia.
4. Coca-cola is one of the world's most recognizable trademarks recognized in countries that account
for 98 percent of the world's population.
5. If all the coca-cola ever produced were in 8- ounce bottles. And these bottles were distributed to
each person in the world. There would be 678 bottles or over 42 gallons for each person.
6. If all the coca-cola ever produced were in 8 - ounce bottles, placed side by side and end to end to
from a lane highway, it would wrap around the earth 82 times.
7. If all the coca-cola ever produced were flowing over Niagara fall at its normal rate of 105 million
gallons per second instead of water, the falls would flow for about a day and a half 38 hours and
46 minutes.
HISTORY IN INDIA

Coca-cola in India
Coca-Cola, the corporation nourishing the global community with the world's largest selling soft drink
concentrates since 1886, returned to India in 1993 after a 16 year hiatus, giving new thumbs up to the
Indian soft drink market. In the same year, the Company took over ownership of the nation's top soft-drink
brand and bottling network. It's no wondering our brands assumed an iconic status in minds of world's
consumers.

A Healthy Growth to the Indian Economy

Ever since, Coca-Cola India has made significant investments to build and continually consolidate its
business in the country, including new production facilities, waste water treatment plants, distribution
systems, and marketing channels.
Coca-Cola India is among the country's top international investors, having invested more than US$ 1
billion in India in the first decade, and further pledged another US$100 million in 2003 for its operations.

A Pure Commitment to the Indian Economy

The Company has shaken up the Indian carbonated drinks market greatly, giving consumers the pleasure
of world-class drinks to fill up their hydration, refreshment, and nutrition needs. It has also been
instrumental in giving an exponential growth to the country's job listings.

Creating Enormous Job Opportunities

With virtually all the goods and services required to produce and market Coca-Cola being made in India,
the business system of the Company directly employs approximately 6,000 people, and indirectly creates
employment for more than 125,000 people in related industries through its vast procurement, supply, and
distribution system.
The Indian operations comprises of 50 bottling operations, 25 owned by the Company, with another 25
being owned by franchisees. That apart, a network of 21 contract packers manufactures a range of
products for the Company.
On the distribution front, 10-tonne trucks - open bay three-wheelers that can navigate the narrow
alleyways of Indian cities - constantly keep our brands available in every nook and corner of the country's
remotest areas.
These are only some of the facts that speak about our commitment to the growth of the Indian Economy

PROMISE BY COCA-COLA
The coca-cola company exists to benefits and refreshes every one it touches. The basic proposition of
our business is simple, solid and timeless. When we bring refreshment, value, joy and fun to our
stakeholders then we successfully nurture and protect our brand, particularly coca-cola. That is the key to
fulfilling our ultimate obligation to provide consistently attractive to the owner so four business.
More then a billion times every day, thirsty people around the world reach for coca-cola products for
refreshment. They deserve the highest
Quality - every time. Our promise to deliver that quality is the most important promise we make. and it
involves a world-wide, yet distinctively local, network of bottling partner, supplier, distributor and retailers
whose success is paramount to our own. Our investment in local communities in over 200 countries totals
billions of dollars in jobs, facilities, marketing, the purchase of local good and services, and local business
partnership. Always and every where , we pursue continuous innovation in the products we offer the
processes we use to make them, the package we develop and the way we bring them to market.

BRAND IN INDIAN ORIGIN

GOLD SPOT: this orange carbonate soft drink was introduced in the early 1950c, and acquired by the
Coca-Cola company in 1993, its tangy taste has been popular with Indian teenagers

LIMCA: It is thirst-quenching beverage features a fresh and light lemon-lime taste and lighthearted
attitude. The limca brand was introduced in 1971 and acquired by the coca-cola company in 1993.

MAAZA: Maaza, launched in 1984 and acquired by the coca-cola company in 1993, is a non carbonated
mango soft drink with a rich, juice & natural mango taste.

THUMPS UP: in 1993, the Coca-Cola company acquired this brand, which was originally introduced in
1977. Its strong and fizzy taste makes it unique carbonated Indian cola.

PEPSICO
PepsiCo is one the largest companies in the U.S. It figures amongst the largest 15 companies worldwide
according to the number of employees hired. It has a U.S. Fortune rank of 50.The company profits for
1997 were $2.14 billion on revenues of $20.92 billion and Pepsi is bottled in nearly 190 countries.
PepsiCo is a world leader in convenient snacks, foods and beverages with revenues of more than $43
billion and over 198,000 employees. Take a journey through our past and see the key milestones that
define PepsiCo.
PepsiCo is a world leader in the food chain business. It consists of many companies amongst which the
prominent once are Pepsi-Cola, Frito-Lay and Pepsi Food International. The group is presently into two of
the most profitable and profitable and growing industries namely, beverages and snack foods. It has
scores of big brands available in nearly 150 countries across the globe. The group has established for
itself once of the strongest brands in various segments of its operations.
The beverages segment primarily markets its Pepsi, Diet Pepsi, Mountain Dew and other brands
worldwide and 7-UP outside the U.S. markets. These are positioned in close competition with Coca-Cola
Inc. of USA. A point which is worth a mention is that Coca- Cola gets 80% of its profits for International
operations while the same figure for PepsiCo stands at 6%. The segment is also in the bottling plants and
distribution facilities and also distributes the ready to drink tea products of Lipton in North America. In a
joint venture with orient spray juice products PepsiCo also manufactures and distributes fruit juices.
The snack food division manufactures and distributes and markets chips and other snacks worldwide.
The international operations of this segment extend to the markets of Mexico, the UK and Canada. Frito-
Lay represents this segment of PepsiCo.
The restaurant segment earlier primarily consists of the operations of the worldwide Pizza Hut, Taco Bell
and KFC chains. PFS. Pepsi company's restaurant distribution operation, supplies company owned and
franchise restaurants in the U.S. The company ventured into restaurant business with Taco Bell, KFC,
Pizza Hut ended last year when they were spanned off from the company. A packaged goods company
comprised of Pepsi-Cola Company and Frito-Lay will continue to bear the PepsiCo name. The move
should enhance both corporations ability to prosper with their own fully dedicated structure and
management team.

PEPSICO IN INDIA
PepsiCo gained entry to India in 1988 by creating a joint venture with the Punjab government-owned
Punjab Agro Industrial Corporation (PAIC) and Voltas India Limited. This joint venture marketed and sold
Lehar Pepsi until 1991, when the use of foreign brands was allowed; PepsiCo bought out its partners and
ended the joint venture in 1994. Others claim that firstly Pepsi was banned from import in India, in 1970,
for having refused to release the list of its ingredients and in 1993, the ban was lifted, with Pepsi arriving
on the market shortly afterwards. These controversies are a reminder of "India's sometimes acrimonious
relationship with huge multinational companies." Indeed, some argue that PepsiCo and The Coca-Cola
Company have "been major targets in part because they are well-known foreign companies that draw
plenty of attention."

In 2003, the Centre for Science and Environment (CSE), a non-governmental organization in New Delhi,
said aerated waters produced by soft drinks manufacturers in India, including multinational giants
PepsiCo and The Coca-Cola Company, contained toxins, including lindane, DDT, malathion and
chlorpyrifos � pesticides that can contribute to cancer, a breakdown of the immune system and cause
birth defects. Tested products included Coke, Pepsi, 7 Up, Miranda, Fanta, Thumps Up, Limca, and
Sprite. CSE found that the Indian-produced Pepsi's soft drink products had 36 times the level of pesticide
residues permitted under European Union regulations; Coca Cola's 30 times. CSE said it had tested the
same products in the US and found no such residues. However, this was the European standard for
water, not for other drinks. No law bans the presence of pesticides in drinks in India.

The Coca-Cola Company and PepsiCo angrily denied allegations that their products manufactured in
India contained toxin levels far above the norms permitted in the developed world. But an Indian
parliamentary committee, in 2004, backed up CSE's findings and a government-appointed committee, is
now trying to develop the world's first pesticides standards for soft drinks. Coke and PepsiCo opposed the
move, arguing that lab tests aren't reliable enough to detect minute traces of pesticides in complex drinks.

As of 2005, The Coca-Cola Company and PepsiCo together hold 95% market share of soft-drink sales in
India. PepsiCo has also been accused by the Puthussery panchayat in the Palakkad district in Kerala,
India, of practicing "water piracy" due to its role in exploitation of ground water resources resulting in
scarcity of drinking water for the panchayat residents, who have been pressuring the government to close
down the PepsiCo unit in the village.
In 2006, the CSE again found that soda drinks, including both Pepsi and Coca-Cola, had high levels of
pesticides in their drinks. Both PepsiCo and The Coca-Cola Company maintain that their drinks are safe
for consumption and have published newspaper advertisements that say pesticide levels in their products
are less than those in other foods such as tea, fruit and dairy products. In the Indian state of Kerala, sale
and production of Pepsi-Cola, along with other soft drinks, was banned by the state government in 2006,
but this was reversed by the Kerala High Court merely a month later. Five other Indian states have
announced partial bans on the drinks in schools, colleges and hospitals.

Brand Facts
PepsiCo nourishes consumers with a range of products from tasty treats to healthy eats that deliver
enjoyment, nutrition, convenience as well as affordability The group has built an expansive beverage and
foods business. To support its operations, PepsiCo has 42 bottling plants in India, of which 13 are
company owned and 29 are franchisee owned. In addition to this, PepsiCo's Frito Lay division has 3
state-of-the-art plants. PepsiCo's business is based on its sustainability vision of making tomorrow better
than today. PepsiCo's commitment to living by this vision every day is visible in its contribution to the
country, consumers and farmers.

Beverages
PepsiCo India's expansive portfolio includes iconic refreshment beverages Pepsi, 7 UP, Nimbooz,
Miranda and Mountain Dew, in addition to low calorie options such as Diet.
Pepsi, hydrating and nutritional beverages such as Aquafina drinking water, isotonic sports drinks -
Gatorade, Tropicana100% fruit juices, and juice based Drinks - Tropicana Nectars, Tropicana Twister and
Slice. Local brands - Lehar Evervess Soda, Dukes Lemonade and Mangola add to the diverse range of
brands.

Foods
PepsiCo's food division, Frito-Lay, is the leader in the branded salty snack market and all Frito Lay
products are free of trans-fat and MSG. It manufactures Lay's Potato Chips; Cheetos extruded snacks,
Uncle Chips and traditional snacks under the Kurkure and Lehar brands. The company's high fiber
breakfast cereal, Quaker Oats, and low fat and roasted snack options enhance the healthful choices
available to consumers. Frito Lay's core products, Lay's, Kurkure, Uncle Chipps and Cheetos are cooked
in Rice Bran Oil to significantly reduce saturated fats and all of its products contain voluntary nutritional
labeling on their packets.

QUICK FACTS
 PepsiCo established it's business operations in India in 1989
 Invested more than USD 1 Billion since inception
 Well known and loved global brands that delight and nourish consumers
 It provides direct and indirect employment to 150,000 people in India
 It has more than 42 bottling plants in India, of which 13 are company owned & 29 franchisee
owned
 3 State-of-the-art food plants in Punjab, Maharashtra and West Bengal
PEPSI CO INDIA: A FORTUNE 500 COMPANY IN INDIA
PepsiCo, which ranks among the world's five largest food and beverage companies with 16 brands, and
its partners have invested more than US$ 700 million in India - building businesses, which today provide
direct or indirect employment to more than 60,000 people. Since Pepsi's entry into the Indian market in
1989, several brands from its portfolio have become established category leaders. Brand Pepsi is now
the 2nd biggest brand in the country. PepsiCo's portfolio of beverage brands in India includes the flagship
cola brand Pepsi; Diet Pepsi; two flavors of Mirinda - Orange and Lemon; 7UP; Mountain Dew; packaged
drinking water - Aquafina; variants of the fruit drink brand Slice; the 100 per cent fruit juice brand
Tropicana in several variants and the world's leading sports drink Gatorade.
Pepsi - Yeh Hai Youngistan Meri Jaan

BRAND HISTORY
Pepsi is a hundred year old brand loved by over 200 million people worldwide. The largest single selling
soft drink brand in India is the ubiquitous'socialiser'at every occasion.

 Youngistan loves it. 200 million people worldwide love it. But what has made Pepsi the single
largest selling soft drink brand in India is actually a formula concocted a century ago in a far away
continent.
 1886, United States of America. Caleb Brad man, the man with a plan, got on to formulate a
blockbuster digestive drink and decided to call it Brad's drink. It was this doctor's potion that was to
become Pepsi Cola in 1898, and eventually, Pepsi in 1903.
 Pepsi has always played on the front foot and since its inception has come out with revolutionary
concepts like Diet, 2L bottles, recyclable plastic cola bottles and the enviable My Can.

BRAND ADVANTAGE
 Pepsi has become a friend to the youth and has led many youth cultures. Youngsters over the
generations have grown up with Pepsi and share an emotional connect with it, unlike any other
cola brand. Be it parties, hangouts, or just another day at home, a day is never complete without
the fizz of Pepsi!
 Pepsi, Cricket and Bollywood have been joined at the hip since the beginning. Shah Rukh Khan,
Sachin Tendulkar, Saif Ali Khan, Amitabh Bachchan, Kareena Kapoor, Priyanka Chopra, Virender
Sehwag, M. S. Dhoni, John Abraham, Ranbir Kapoor and Deepika Padukone are a few celebrities
who will go any length for a chilled Pepsi.
 The Pepsi My Can is undoubtedly the most popular cola pack of all times. It is not just a pack but a
style statement for today's youth.
PEPSI PRODUCTS IN INDIA
SLOGANS USED BY PEPSI COMPANY
1898 Brad's Drink
1903 Exhilarating, Invigorating, Aids Digestion
1906 Original Pure Food Drink
1908 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!
1929 Here's Health!
1932 Sparkling, Delicious
1933 It's the Best Cola Drink
1934 Double Size

Refreshing and Healthful

1938 Join the Swing to Pepsi
1939 Twice as Much for a Nickel
1943 Bigger Drink, Better Taste
1947 It's a Great American Custom
1949 Why Take Less When Pepsi's Best?
1950 More Bounce to the Ounce
1954 The Light Refreshment

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, Pepsi Pours It On.
1969 You've got a Lot to Live; Pepsi's got a Lot to Give
1973 Join the Pepsi People Feeling' Free
1976 Have a Pepsi Day!
1979 Catch That Pepsi Spirit

Take the Pepsi Challenge

1981 Pepsi's Got Your Taste for Life
1983 Pepsi Now! 1984 The Choice of a New Generation
1987 America's Choice
1989 A Generation Ahead
1992 Gotta Have It
1993 Be Young, Have Fun, Drink Pepsi
1995 Nothing Else is a Pepsi
1997 Generation Next
1998 Same Great Taste 1999

The Joy of Cola

2000 The Joy of Pepsi
2003 Pepsi. It's the Cola
2000-2003: "Aazadi dil ki" (Hindi- meaning "Freedom of the Heart")(India)
2003: "It's the Cola"/"Dare for More" (Pepsi Commercial)
2003-2005: "Yeh Pyas Hai Badi" (Hindi meaning "This thirst is too much") (India)
2005-2006: "An ice cold Pepsi. It's better than sex!"
2006-2007: "Why You Dogging' Me"/"Taste the one that's forever young"
2007-2008: "More Happy"/"Taste the once that's forever young"
2008: "Yeh Hai Youngistan Meri Jaan!" Hindi - meaning "This is the Young era my dear" (India and
Pakistan)
2008: "Pepsi Stuff" Super Bowl Commercial
2008: "Pepsi is #1" TV commercial
2008: "Pepsify karo gai!" Commercial (Hindi meaning "Wanna Pepsify!")
2008-2009: "Something for Everyone."
2009-present: "Refresh everything" and (during many commercials) "Every Generation Refreshes the
World"

THE RIVARLY BEGINS:

Coke Comes to India

Coca-Cola comes 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 realized that to popularize 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 realized 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 comes 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 it's arch-
rival, PepsiCo. Has achieved with its fast and furious marketing. But to win them, Coke is copying Pepsi.

MARKETING STATEGIES OF COKE AND PEPSI

PRODUCT
Coke was launched in India in Agra, October 24, in '93', soon after its traditional all Indian launch of its
Cola. At the sparking new bottling plants at Hathra, near Agra. Coke was back with a bang after its exit in
1977.
Coke was planning to launch in next summer the orange drink, Fanta-with the clear lemon drink, sprite,
following later in the year.
Coke already owns more brands than it will over need, since it has bought out Ramesh Chauhan. Coke
just needs to juggle these brands around dextrously to meet its objectives, to ensure that Pepsi does not
gain market share in t Today, Coke's product line includes, Coca-Cola, Thumps Up, Fanta, Gold Spot,
Maaza, Citra, Sprite, Bisleri Club Soda and Diet Coke.

PACKAGING
Coca-Cola India Limited (CCIL) has bottled its Cola drink in different sizes and different packaging i.e.,
200 ml bottle, 300 ml. Bottle, 330 ml. Cans, 500 ml. Bottle fountain Pepsi, and bottles of 1 and 2 litre.

PRODUCT POSITIONING
One important thing must be noticed that Thumps Up is a strong brand in western and southern India,
while Coca Cola is strong in Northern and Eastern India. With volumes of Thumps Up being low in the
capital, there are likely chances of Coca Cola slashing the prices of Thumps Up to Rs. 5 and continue to
sell Coca Cola at the same rate. Analysts feel that this strategy may help Coke since it has 2 Cola brands
in comparison to Pepsi which has just one.

Thumps Up accounts for 40% of Coca Cola company's turn over, followed by Coca Cola which has a
23% share and Limca which accounts for 17% of the turnover of the company. (Thumps up being the
local drink, its share in the market is intact, forcing the company to service the brand, as it did last year
Mr. Donald short CEO, Coca Cola India, said that, " we will be absolutely comfortable if Thumps Up is No.
1 brand for us in India in the year 2000. We will sell whatever consumers want us to". Coca Cola India
has positioned Thumps up as a beverage associated with adventure because of its strong taste and also
making it compete with Pepsi as even Pepsi is associated with adventure, youth.
PRICE
The price being fixed by industry, leaving very little role for the players to play in the setting of the price, in
turn making it difficult for competitors to compete on the basis of price.

The fixed cost structure in Carbonated Soft Drinks Industry, and the intense competition make it very
difficult to change or alter the prices. The various costs incurred by the individual companies are almost
unavoidable. These being the costs of concentrates, standard bottling operations, distributor and bottlers
commissions, distribution expenses and the promotional and advertising expenditure (As far as Coke is
concerned, it had to incur a little more than Pepsi as Pepsi paved its way to India in 1989 while Coke
made a come back in 1993.)

Currently a 300 ml. Coke bottle is available for Rs. 6 to8 The 330 can was initially available for Rs. 13 and
now, since the price has gave up to Rs. 18 per can. The prices of 500 m, 1 litre. And 2ltr being Rs. 15 Rs.
23 and Rs. 40 respectively (according to the current survey).

Dating back to '93', when Pepsi hiked the price of Pepsi - Cola from Rs. 5 to Rs. 6 per 250 ml. bottle in
some parts of the country-including Agra. Coke penetrated the market with price of Rs. 5 for a 300 ml.
bottle, making it cheaper by Rs. 1 and 50 ml. than Pepsi. Coke's strategy at that time being able to
expand the availability of soft drinks even in rural India. Coke's priority being to first increase the number
of drinks per drinker, and then the number of drinkers itself. Pepsi also tried this but was trapped by a
series of competitive price increase and changes in bottle sizes by Parle. But the prices of soft drinks
have shot up since Pepsi's arrival and the current prices are being mentioned as under.

Price list
Name Bottle Size MRP (in Rs.)
Coke Per Bottle 200 ml 6
Coke 300 ml 10
Coke 500 ml (Plastic / Glass) 22
Coke 2 litre 60
Diet Coke (Can) 330 ml Can 35
Coke (Can) 330 ml Can 38
However, the trends may have been in the early '90's, now the prices of Pepsi and Coke are the same
making it difficult in future and present to compete on the basis of price.
PLACE
Coke may have gained an early advantage over Pepsi since it took over Parle in 1994. Hence, it had
ready access to over 2, 00,000 retailer outlets and 60 bottlers. Coke was had a better distribution
network, owing to the wide network of Parle drinks all over India. Coke has further expanded its
distribution network.

Coke and its product were available in over 2, 50,000 outlets (in contrast with Pepsi's 2, 00,000). Coke
has a greater advantage in terms of geographical coverage.

But Coke has had problems with its bottlers as the required profits for the bottlers have not been
forthcoming. This is more so because Coke has hiked the price of its concentrate by Rs. 8 Further,

Coke's operations in India are 100% Fobs. Now, it plans to convert them into COBOs. This is straining the
relationship between the Coke and its bottlers.

The company had decided to create a fund to reimburse performing bottlers for the extra costs incurred
on account of the hike in prices of soft drink concentrates. Mr. Short also realized that India is a price
sensitive market and the company would have to absorb in the increase in excise duty and said that in
the long run Coke will have to slash prices for the benefit of the consumers and said that they were
considering a cut in the prices of their fountain soft drinks.

Coke and Pepsi have devised strategies to get rid of middlemen in the distribution network. However,
50% of the industry unfortunately depends on these middlemen. As of now, around 100 agents are
present in Bananas. Bottlers of the 2 multinationals have strongly felt the need to remove these
middlemen from the distribution system, but very little success has been achieved in doing so.

PROMOTION

It must be remembered that soft drinks purchases are an "impulse buy low involvement products" which
makes promotion and advertising an important marketing tool. The 2 arch rivals have spent a lot on
advertising and on promotional activities.

To promote a brand and even to spend a lot on advertising, the company must be aware of the perceived
quality of the brand, its brand power (if at all there is) since consumers make purchase decision based on
their perceptions of value i.e., of quality relative to price.

According to Paul Stobart, Advertising encourages customers to recognize the quality the company
offers. Price promotions often produce short-term sales increases. Coca Cola has entered new markets
and also developing market economics (like India) with much-needed jobs.

Coke attributes its success to bottlers, the Coca Cola system itself, i.e., its executive committees,
employees, BOD, company presidents but above all from the consumer.
Coke's red color catches attention easily and also the Diet Coke which it introduced was taking the Cake,
as Pepsi has not come out with this in India. Ever since Coke's entry in India in 1993, Coke made a come
back (after quitting in 1977), in October 24 in Agra, the city was flooded by trucks, there wheelers, tricycle
cards-all with huge red Coke-emblazoned umbrellas. Retailers were displaying their Coke bottles in
distinctive racks, also with specially-designed iceboxes to keep Coke bottles cold. This was one big jolt to
Pepsi.

STRATEGIES ADOPTED

BY COKE AND 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.

EMPOWERMENT
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 Thumps Up's Rs. 9, in April, 1996, its 1.5 liters 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 realized 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. Too
really drive the market, as Coke wants to you must go down to Rs. 3'.

PEPSI VS. COKE

$28 BILLION TURNOVER $16 BILLION
32% INT. SALES AS % 70% OF TOTAL SALES
RS. 5OO CRORES TOTAL INVESTMENT RS. 250 C IN INDIA
RS. 300 CRORES PROPOSED RS. 2,400C INVESTMENTS
2400 NO. OF EMPLOYEES 140
13 NO. OF OWNED NIL

BOTTLING PLANTS
18 NO. OF FRANCHISES 53
4000 NO. OF FOUNTAIN 1500
N.A. TOTAL INVESTMENT Rs 125 CR

BY BOTTLERS
6 NEW PLANTS PLANNED N.A.

PEPSI AND COKE MARKET SHARE IN INDIA

Competitive Comparisons
 Advertising
 Coke: $34.4 million (1975) to $211.5 million (1993)
 Pepsi: $25.3 million (1975) to $147.3 Million (1993)
 Distribution
 Coke stronger in fountain. But Pepsi IS growing in supermarkets?
 Pricing
 No differences

COLA WARS

OVER A CENTURY OF COLA SLOGANS, COMMERCIALS, BLUNDERS, AND COUPS

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.
IT ALL STARTED . . . .
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 Brad ham, claimed it had on dyspepsia. For many years, Coca-Cola had the
cola market cornered. Pepsi was a distant, no threatening 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.

ADVERTISING HISTORY & COMMERCIALS

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 Old-field, 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 nickel. 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 record Coca-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 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 late Michael Jackson, then Madonna, Michael J.
Fox, Billy Crystal, Lionel Ritchie, Gloria Stefan, 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
(Halide 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.

SLOGANS
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.

COCA-COLA
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

PEPSI-COLA
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 Feeling' 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 Pepsi1995 Nothing Else is a Pepsi
1997 Generation Next
1998 Same Great Taste 1999
The Joy of Cola
2000 The Joy of Pepsi
2003 Pepsi. It's the Cola
2000-2003: "Aazadi dil ki" (Hindi- meaning "Freedom of the Heart")(India)
2003: "It's the Cola"/"Dare for More" (Pepsi Commercial)
2003-2005: "Yeh Pyas Hai Badi" (Hindi meaning "This thirst is too much") (India)
2005-2006: "An ice cold Pepsi. It's better than sex!"
2006-2007: "Why You Dogging' me"/"Taste the one that's forever young"
2007-2008: "More Happy"/"Taste the once that's forever young"
2008: "Yeh Hai Youngistan Meri Jaan!" Hindi - meaning "This is the Young era my dear" (India and
Pakistan)
2008: "Pepsi Stuff" Super Bowl Commercial
2008: "Pepsi is #1" TV commercial
2008: "Pepsify karo gai!" Commercial (Hindi meaning "Wanna Pepsify!")
2008-2009: "Something for Everyone."
2009-present: "Refresh everything" and (during many commercials) "Every Generation Refreshes the
World"

CELIBRITIES PLAYING PART IN TO THE SALES

PROMOTION OF THE PRODUCT:

CELIBRITIES OF PEPSI:

 AMITABH BACHHAN
 SHAHRUKH KHAN
 PRIETY ZINTA
 SACHIN TENDULKAR
 SAIF ALI KHAN
 SOURAV GANGULY
 RAHUL DRAVID
 MOHD. KAIF
 ZAHEER KHAN
 HARBHAJAN SINGH
 YUVRAJ SINGH
 RANBIR KAPOOR
 VINDHU DARA SUNGJ
 DEEPIKA PADUKONE

CELIBRITIES OF COKE:
 SALMAN KHAN
 AISHWARYA RAI
 AAMIR KHAN
 VIVEK OBEROI
 BIPASHA BASU
 AKSHAY KUMAR
 IMRAN KHAN
 KALKI
Pepsi v Coca-Cola war turns hot
The ongoing cola war between global rivals Pepsi and Coca-Cola has taken a weird twist in India with the
former dragging the latter to court. The charge: Coca-Cola has snatched employees, bottlers, and agents,
all of whom are bound to Pepsi by a contract. Pepsi has charged Coke with having entered into a
conspiracy to disrupt its business operations by inducing key employees and associates to break existing
contracts illegally. Pepsi has sought a permanent injunction and an ex parte order against coke,
restraining it from taking away Pepsi's employees and business associates. Pepsi has also reserved the
right to seek financial damages from Coke at a later date if necessary.
Pepsi has claimed that a dozen middle-level managers and three territory managers broke their contracts
with Pepsi to join Coke in recent months, while during the last year and half, seven managers quit Pepsi
to join Coca-Cola.
Justice C M Nair of the Delhi high court on April 17 issued notices and summons to Coca-Cola and 15
others for May 6. However, Justice Nayar refused to grant the ex parte injunction sought by Pepsi India to
stop the alleged inducements by Coke in offering employment to Pepsi's employees while the suit was
pending in court.
On behalf of Pepsi, Ashok Desai and Arun Jaitley contended that Coca-Cola had been "rattled by the
huge success of Pepsi in India entered into a conspiracy during the last six months to cause loss and
damage to Pepsi's business interests by adopting unfair and illegal means."
It added that Coca-Cola had approached many key managers and had successfully lured a commercial
manager of its bottling business Gaurav Duggal, and a manager in Surat Sailesh Joshi, besides others.
Pepsi charged that while initially these approaches were sporadic, over the last six months it is clear that
Coca-Cola has changed its strategy and has decided to consciously target and approach key employees
of Pepsi at various locations in India.
The company has alleged that in most cases, the employees have not been given time to adhere to the
90-day notice period and the one-year confidentiality agreement. The latter deal bars employees joining
its rivals for at least a year.
Desai claimed Coke's actions would directly harm the business interests of Pepsi, which had invested
over $300 million in the country in establishing business infrastructure. In its defense, Coke is expected to
seek relief in the Indian Constitution which states that there can be no restriction on the movement of
labor. Besides, any effort by a company to restrict its employees from joining other companies might fall
foul of the Monopolies and Restrictive Trade Practices Act as an unfair trade practice.
Pepsi has cited the instance of Coke snapping up cricketer Javagal Srinath in spite of the latter signing a
contract with Pepsi's sports consultant, 21st Century Media. However, media reports, quoting sources,
said that Srinath's contract had been only in the verbal stage.
Similarly, Pepsi has charged Coke with inducing the Board of Control for Cricket in India to give the
sponsorship of the recently concluded Pepsi Triangular Cricket Series to Coke, as acknowledged in the
BCCI submission before the Bombay high court, even while a contract was signed with Pepsi.
Pepsi has listed the case of Coke trying to induce its music consultant DNA Networks Private Ltd, which
organized the Yanni show, to snap its ties with Pepsi and join Coke. Incidentally, in results announced for
the first three months of the year, Pepsi has swept Coca-Cola aside. Pepsi has reported a growth of 27
per cent compared to Coke's 21 per cent during the same period. In the first three months of last year,
Pepsi grew by 18 per cent only.
Coca-Cola India chief executive Donald Short had announced that Coke would grow by at least 20 per
cent for the whole of 1998. Coca-Cola, along with the Parle brands it acquired when it came into India --
Thums Up, Limca, and Gold Spot - continue to dominate India with a 55 per cent market share to Pepsi's
43 per cent. But in the cola segment, Coke comes a poor third after Thumps Up and Pepsi.
The current summer season is the most important for the cola giants, with consumption at its peak.

BATTLE OF THE BEVERAGES:

PEPSI IS NOT AS PRICEY

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 per nod Richard. And last month, Coke entered into an
agreement with Group Danone to distribute Evian bottled water in North America.

Some pretzels with that soda?

But while Coke relies solely on beverages for growth, another factor in Pepsi's favor is its diversity. "What
attracts me to Pepsi is I have more faith in their ability to grow earnings. Not only are they successful on
the beverage side but they are successful with salty snack foods," says Crit Thomas, director of growth
equity for National City Investment Management Co., the sub advisor for Armada Funds. As of March 31,
Pepsi was the seventh-largest holding in the Armada Tax Managed Equity Fund and the tenth-largest
holding in the Armada Equity Growth Fund.

In fact, Pepsi's carbonated beverages are not even the biggest generator of sales and earnings for the
company. Pepsi's Frito-Lay brand of snack foods, which include Fritos, Doritos and Rold Gold, accounted
for 61.2 percent of revenue and 65.3 percent of operating profits in the first quarter.

Pepsi's soft drink business made up 19 percent of sales and 23.2 percent of operating profit. Pepsi also
owns Gatorade and Quaker Foods, having acquired Quaker Oats last year.
One potential risk for both Pepsi and Coke is the economy. No, not if it goes back into a recession. If the
economy continues to improve, the stocks could fall victim to what is known as sector rotation, the selling
of defensive companies like food and beverages in order to buy more economically sensitive companies
in the financial services and technology sectors. To that end, shares of Pepsi and Coke fell slightly on
Wednesday during the Cisco-induced market rally.

Still, Thomas says signs that the dollar is starting to weaken compared to other currencies should prop up
both stocks. That's because a weaker dollar helps boost the profits of international subsidiaries, since
profits made in a foreign currency are converted back to dollars. The majority of Coke's sales are from its
international operations, with just 38 percent of revenue coming from the U.S. last year. Pepsi is not as
big globally but currency fluctuations are still a factor, as international sales accounted for 29 percent of
revenue in 2001.

Coke and Pepsi in India:

Coca-Cola controlled the Indian market until 1977, when the Janata Party beat the Congress Party of
then Prime Minister Indira Gandhi. To punish Coca-Cola's principal bottler, a Congress Party stalwart and
longtime Gandhi supporter, the Janata government demanded that Coca-Cola transfer its syrup formula
to an Indian subsidiary. Coca-Cola balked and withdrew from the country. India, now left without both
Coca-Cola and Pepsi, became a protected market. In the meantime, India's two largest soft-drink
producers have gotten rich and lazy while controlling 80% of the Indian market. These domestic
producers have little incentive to expand their plants or develop the country's potentially enormous
market. Some analysts reason that the Indian market may be more lucrative than the Chinese market.
India has 850 million potential customers, 150 million of whom comprise the middle class, with disposable
income to spend on cars, VCRs, and computers. The Indian middle class is growing at 10% per year. To
obtain the license for India, Pepsi had to export $5 of locally made products for every $1 of materials it
imported, and it had to agree to help the Indian government to initiate a second agricultural revolution.
Pepsi has also had to take on Indian partners. In the end, all parties involved seem to come out ahead:
Pepsi gains access to a potentially enormous market; Indian bottlers will get to serve a market that is
expanding rapidly because of competition; and the Indian consumer benefits from the competition from
abroad and will pay lower prices. Even before the first bottle of Pepsi hit the shelves, local soft drink
manufacturers increased the size of their bottles by 25% without raising costs.

PRICE
Maximum retail price of 300 ml bottles is controlled by the Central Government. The other size and packs
are priced keeping factors like competition, internal costs, external costs, and the corporate objective of
the company in the mind.
PRODUCT SELLING PRICE MAX. RETAIL PRICE
(Per crate) (Per crate)
 300 ml bottles 240 264
 500 ml bottles 364 388
 1 Liter bottles 500 520
 Soda 300 ml 164 188
 Cans 332 352
 1.5 Liter PET 50* 55*

Bottles
Price per bottles the empty bottles are priced at Rs 120 per crate and the shell at Rs 100.

DAY PREFERENCE OF SOFT DRINKS IN A

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

PREFERENCE TO THE BRAND

Pepsi 40%
Coke 60%

PUBLIC RELATIONS ANGLE

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 favor of PCI while 30% responded in favor 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 it's sure that the other will definitely go on for the next. It's a tough tussle and is really difficult to
demarcate today.
MARKET SHARE PERCENTAGE IN NEW DELHI

COKE 56%
PEPSI 35%
Pure Drinks 9%

Local Brand
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 - 5h
Coca-Cola - 4h
The results of 95 were:
Pepsi - 7th
Coca-Cola - 9h
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 metro cities consumers, so prefer Pepsi advertisements and
other activities of Pepsi, to that of Coca- Cola.

FINDINGS & ANALYSIS

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 drink. 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 deigned.

Pepsi findings:
Pepsi is the 2ND largest selling soft drink in India today. In DELHI it has 35% of the market share. In India
it has 44% 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 it's 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 they 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.

PRESENT COMPETITON BETWEEN COCA COLA AND PEPSI

 If we see the present scenario its hard to tell which brand is winning the cola wars as Pepsi had
extended its cola wars to other sectors like FRITO-LAYS and NIMBOOZ which is giving tough
competition to coca -cola which doesn't target on these sectors.
 Second aspect which is to be given in consideration is that, both the companies are spending
heavily on advertisement and more celebrities are roped in by both the companies to fight the
competition.
 Recently COLA-COLA beverages ACTORS IMRAN KHAN AND KALKI for a new ad ;to reply back
to this a new ad by PEPSI beverages featuring ACTOR RANBIR KAPOOR and VINDHU DARA
SINGH came up which is making waves at present.
 Coke is served in MC DONALDS and there we won't find Pepsi products even the coffee served is
of GEORGIA which is a coca-cola brand, same is the case of PIZZA HUT and KFC which is owned
by PEPSI CO there only Pepsi products are served, this had lead 2 clear war in restaurant
segment as well...
 PEPSI is targeting young generation and their ad campaigns are a clear example of that, whereas
coca-cola is targeting the family as a whole which has been its old formula from ages.
 Presently coca-cola may be leading in beverages like coke, but its facing severe competition from
Mirinda, Nimbooz and snack industry where PEPSI is ruling thanks to its KURKURE ad that has
led to great sales for PEPSI CO.
 Though in packed drinking water KINLEY (COCA-COLA BRAND) and ACQAFINA (PEPSI CO
BRAND) both are treated equally by customers. Moreover BISLERI still rules in this segment.

FUTURE SCENERIO OF COCA COLA V/S PEPSI

 The COLA WARS between coca-cola and Pepsi would further grow and in my view its never
ending
 Both the companies would try to become NO1 and there would AD WAR between the two which
would prove to be beneficial for actors/actresses as they would earn more through advertisements.
 Pepsi have started advertisements with female actresses DEEPIKA PADUKONE and COCA-
COLA which had up till know only endorsed male actors for the 1st time endorsed KALKI of DEVD
fame with IMRAN KHAN in its new ad.
 With the coming up of COMMENWEALTH GAMES 2010 in NEW DELHI, both the brands would try
to attract customers towards itself with heavy promotion and ad campaigns to build new customers
and increase there share in market as well as strengthen their brand value and earn profits.

Consumers
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
number one factors 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 up to 2-3 times a day.
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 favorite's 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 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 Delhi well as in India.
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.

ANALYSIS OF QUESTANNAIRE
50 respondents were chosen among different age groups for conducting the survey

FINDINGS:
1. YOUNGSETRS prefer PEPSI COLA over COKE
2. Older age group prefer Mirinda lemon and limca over coke and Pepsi cola
3. ADS play a major role in choosing of brand
4. Celebrities have a great effect on people consuming cold drinks
5. People prefer Nimbooz (Pepsi co)over Pepsi cola and coke.
6. In terms of innovative and exciting offers Pepsi co leads coca-cola.
7. When the question of more effective advertisements was asked mixed reactions came with 50-50
response for both Coke and Pepsi.
8. Price plays an effective role for choosing of product among INDIAN CONSUMERS.
9. TASTE came out to be most important for the consumers in preferring for a particular brand.
10. TELEVISION came out to be most effective for ad campaigns as respondents of all age groups
watch tv.

RECOMMENDATIONS
Soft drinks are an impulse product. When a person is thirsty, he would first think of water or tea. Some
even would prefer 'Nimbooz "

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 soft-drink 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 them. 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 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 hav 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 behavior, 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 defense 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 an 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.

BIBLIOGRAPHY
 Marketing Management- By Philip Kotler
 WWW.PEPSICO.COM
 WWW.COCA-COLA.COM
 WWW.COLA-WARS.NET
 ADVERTISING MANAGEMENT BY JETHWANEY AND JAIN
 COLA WARS BY J.C.LOUIS

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