About the industry

The fast-moving consumer goods (FMCG) industry or consumer packaged goods

(CPG) industry is mainly responsible for producing, distributing and
marketing fast-moving consumer goods. The FMCG industry is the fourth largest
sector in the Indian economy. Household and personal care products accounts for
50% of the sales in the industry, healthcare accounts for 31-32% and food and
beverage accounts for remaining 18-19%. Fast-moving consumer goods, also
known as consumer packaged goods, are products that are sold quickly and at a
relatively low cost. Examples include non-durable household goods such as
packaged foods, beverages, toiletries, candies, cosmetics, over-the-counter drugs,
dry goods, and other consumables. FMCGs have a short shelf life because of high
consumer demand (e.g., soft drinks and confections) or because they are perishable
(e.g., meat, dairy products, and baked goods). These goods are purchased
frequently, are consumed rapidly, are priced low, and are sold in large quantities.
They also have a high turnover when they're on the shelf at the store.

COCA-COLA vs PEPSI
PRODUCT COCA-COLA PEPSICO
Logo

Manufacturer The coca-cola company PepsiCo

Country of origin United States United States
Introduced May 8 , 1886 1893
Revenue 9.42 12.64 cr
Industry FMCG FMCG
Headquater Atlanta, Georgia, United States, Harrison, New York,
Gurugram Gurugram

COCA-COLA

Coca-Cola India, is one of the country’s leading beverage companies, offering a

range of healthy, safe, high quality, refreshing beverage options to consumers.
Ever since its re-entry in 1993, the Company has gone on to establish an
unmatched portfolio of beverages, refreshing consumers with its leading beverage
brands like Coca-Cola, Coca-Cola Zero, Diet Coke, Thums Up, Fanta, Fanta-Green
Mango, Limca, Sprite, Sprite Zero, VIO Flavored Milk, Maaza, Minute Maid
range of juices, Georgia and Georgia Gold range of hot and cold tea and coffee
options, Kinley and Bonaqua packaged drinking water, Kinley Club Soda and burn
energy drink. The Company along with its bottling partners, through a strong
network of over 2.6 million retail outlets, touches the lives of millions of
consumers. Its brands are some of the most preferred and most sold beverages in
the country.

PEPSICO

PepsiCo has been consistently investing in India, in the areas of product

innovation, increasing manufacturing capacity, ramping up market infrastructure,
strengthening supply chain and expanding company’s agriculture program. The
company has built an expansive beverage and snack food business supported by 62
plants across the country. In two decades, the company has been able to
organically grow eight brands, each of which generate Rs. 1000 crores or more in
estimated annual retail sales and are household names, trusted across the country.
 Competitive strategy

PEPSICO

PepsiCo applies different generic competitive strategies, considering the

company’s wide array of products. However, the main generic strategies that
contribute to PepsiCo’s competitive advantage are as follows:

1. Cost leadership
2. Broad differentiation
3. Brand image

PepsiCo uses cost leadership as its primary generic competitive strategy. This
generic strategy focuses on cost minimization as a way to improve PepsiCo’s
financial performance and overall competitiveness. For example, to compete
against Coca-Cola products, PepsiCo offers low prices based on low operating
costs. The company also sometimes has special promotional offers with discounted
prices. On the other hand, PepsiCo uses broad differentiation as its secondary
generic competitive strategy. This generic strategy enables business competitive
advantage by attracting consumers to some unique features of the firm’s products.
For example, PepsiCo’s Lay’s potato chips are marketed as a healthful snack
product because of reduced saturated fat content. A strategic objective for the cost
leadership generic strategy is to automate production processes to minimize
PepsiCo’s operating costs. In relation, PepsiCo’s strategic objective for the broad
differentiation generic strategy is to innovate products to address concerns about
their health effects. Pepsi has always targeted a young audience with most of its
advertisements addressing teens who have a keen interest in sports, fun, and music.
With these eye-catching and interesting adverts, you would like to give Pepsi a
taste just to experience the value the drink offers. The advertising slogan of Pepsi
in India is “Youngistaan ka Wow”. PepsiCo is more focused on becoming food
and beverage company and has a less partnership with fast food chains. PepsiCo
follows market penetration strategy in order to increase their market share and rise
up their revenue.
COCA-COLA

Coca-cola applies different generic competitive strategies, considering the

company’s wide array of products. However, the main strategies that contribute to
Coca-cola’s competitive advantage are as follows:

1.Quality

2. Product development

3.Brand image

Coca-cola can increase the quality of its products and therefore can charge slightly
higher prices.  This would make it stand a high chance of winning the consumer’s
confidence. The high premium charged covers the additional cost of production.
Coca-cola has launched different products like Lemon Coke, Diet Coca-Cola,
Cherry, and Vanilla Coke, the company has been able to differentiate its offerings
to the different customer segments. Coca-Cola’s adverts, the company is keen on
emphasizing on family, friendship, adorable bears, and other happy relationships.
The current slogan of Coca-Cola is “Share a Coke, Open Happiness”. Coca-cola is
still more focused on beverage company and growing its partnership with different
fast food chains.

PepsiCo portfolio:-

Coca-cola portfolio:-
Supply Chain Strategy

Distribution channel of PepsiCo:-

The main purpose of the trade is to supply products to the people living in far off
places. As the goods and service travel from producer to consumer they have to
move from many individuals. These middle man are the link between producer and
consumers and they perform various functions such as buying, selling, storing etc.
If the producer is producing the product at a large scale then it is possible for the
producer to sell directly to the consumer , else, it sell through middle man.

Distributors

Distributors are one of the most important channel in the distribution who deals
with the goods in bulk quantity. They buy goods in bulk from the producer and sell
relatively less quantity to the retailers. In some cases they sell the goods directly to
the consumers if the quantity to be purchased is more. They usually deal with the
limited quantity of items and also in a specific line of product.

Retailers

PepsiCo provide refrigerators with glass doors to Pepsi outlets so that retailers to
provide chilled Pepsi to the consumers. This also increase the sale of Pepsi
products.
Distribution channel of coca-cola:-

The Company is able to create a global a global reach with local focus because of
the strength of its system, which comprises the Coca-Cola Company and their
more than 250 bottling partners worldwide. While it is generally perceived that
Coca-Cola runs all its operations globally it, this process it done through various
local channels. The Company manufactures and sells concentrates, beverage bases
and syrups to bottling operators. It still however, owns the brand and is responsible
for consumer brand marketing initiative. The bottling partners manufacture,
package and distribute the final branded beverages to customers and vending
partners, who then sell products to consumers. Their business is a local business,
typically products aren’t shipped more than a few hundred miles; it’s all about
being responsive to the customers needs and the local tastes of the consumers in
every market. The Coca-Cola Company sells its products to bottling and canning
operations, distributers, wholesalers and some retailers. They then distribute them
to retail outlets, corner stores, restaurants, petrol stations and many more.