A Project Report on

COMPARATIVE ANALYSIS OF PEPSI & COCA COLA

Graphic Era Hill University - Bhimtal

SATTAL ROAD, P.O. BHOWALI
DISTRICT – NAINITAL – 263136

SCHOOLOF MANAGEMENT – MBA

1st Year (2nd Semester)
Batch (2022-2024)
INTEGRATED MARKETING COMMUNICATIONS

Submitted To:
Submitted by:
Ms. Mallika Tewari Pulkit Upreti
Ma’am
Roll No. 2255100
 ACKNOWLEDGEMENT

We are thankful to the almighty God who always has enlightened our life with his own light.
We are grateful to God for providing us with this great opportunity to do what we admire.

We feel immense pleasure to express our profound sense of reverence and gratitude to the
Assistant Professor Miss. Mallika Tewari, Department of Management, Graphic Era Hill
University, Bhimtal for her valuable guidance, consecutive counsel, and unreserved help that
served as a beacon light throughout the course.

The study was conducted by the assistance of several individuals. We feel obliged to all those
souls whom we met during the study period. To list names individually will be an impossible
task but their memories are cherished the most.

At last, we would like to express our deep sense of gratitude to many known and unknown
hands which pushed us forward, learned souls that put us on the right path and enlightened us
with their experience, knowledge and wisdom.
 TABLE OF CONTENTS

S.No. Topic Page No

1 Chapter-1: Introduction

 Overview of Industry as a whole

 About Pepsi
 About Coca Cola
 S.W.O.T Analysis of the Organization
 Objectives of the study
 Scope of the study
 Methodology

7 Chapter-2: Conceptual Framework

 Marketing Mix

 Product Mix Width & Product Line Length

 Missions & Objectives

 Financial Comparison

 Facts of Rivalry

8 Chapter-3: Data Analysis and interpretation

9 Chapter-4: Summary and Conclusion

 Results of the study

 Limitations

 Suggestions and Recommendations

10 Bibliography

11 Appendix
 INTRODUCTION

Soft Drink Industry: An overview

The soft drink industry is a global multi-billion dollar industry that includes
carbonated beverages, non-carbonated beverages, and energy drinks. The
industry is highly competitive and is dominated by a few major players such as
Coca-Cola and PepsiCo.
Carbonated soft drinks, also known as soda or pop, are a popular choice among
consumers. These drinks are made by adding carbon dioxide to water and mixing
it with sweeteners, flavors, and other ingredients. Some of the most popular
carbonated soft drink brands include Coca-Cola, Pepsi, and Dr. Pepper.
Non-carbonated soft drinks include fruit juices, sports drinks, and flavored
water. These beverages are often marketed as healthier alternatives to
carbonated soft drinks.
Energy drinks are another popular category within the soft drink industry. These
beverages are designed to provide a boost of energy and often contain high levels
of caffeine and other stimulants.
The soft drink industry is facing increasing scrutiny due to concerns about the
health effects of sugary drinks. Some cities and countries have implemented taxes
on sugary drinks, while others have introduced regulations on the marketing and
sale of these beverages.
Overall, the soft drink industry is a major player in the global food and beverage
industry and continues to evolve as consumer preferences shift towards healthier
alternatives.
Objectives of the study

 To study the overview of Pepsi & Coca Cola Company.

 To know and compare the merchandising of Pepsi and Coca Cola.

 To offer some finding and suggestions to the company for the improvement of its
performance.

 To study about the consumer preference with regard to soft drink.

 To study about the consumer perception with regard to Pepsi & Coca Cola.

 To find out the medium which is most effective in reaching the consumers.

 To find out the market plan of the company over the competitors.
Methodology

Data which is required for this study is based on both primary and secondary data.

Primary Data

Primary data is collected from the respondent through a structured questionnaire. It includes the first hand
information from the respondent. It can view as a survey. The questionnaire was especially designed to find
out Comparison between Pepsi & Coca Cola. Through this information we can get the strengths and
weaknesses of Pepsi and Coca Cola Companies in those particular areas. Investigator personally went to
every respondent and asked the total details, which are in the questionnaire and filled those questionnaires.

In the survey the investigator learned a lot and collected the useful information and also got good experience
in the market field and came to know many things which are not in our books through this survey.

Secondary Data

Secondary sources include the information collected from the annual reports, published and unpublished
records of the company. Various books and journals were referred. Internet was also being used for
collecting the relevant data which is not available in the books. After gathering the data from those two
sources the data was analyzed and the important information was extracted for the use of study.
 CHAPTER-2

CONCEPTUAL FRAMEWORK

Marketing Mix of Pepsi & Coca Cola

The tools of marketing mix are combined in such a manner that they give maximum mileage to the product from
the factory to the consumer‟s hand.

Product

In marketing, a product is anything that can be offered to a market that might satisfy a want
or need. It is of two types: Tangible (physical) and Intangible (non-physical). Since services
have been at the forefront of all modern marketing strategies, some intangibility has become
essential part of marketing offers. It is therefore the complete bundle of benefits or satisfactions
that buyers perceive they will obtain if they purchase the product. It is the sum of all
physical, psychological, symbolic, and service attributes, not just the physical merchandise. All
products offered in a market can be placed between Tangible (Pure Product) and Intangible (Pure
Service) spectrum. A product is similar to goods. In accounting, goods are physical objects that
are available in the marketplace. This differentiates them from a service, which is a non- material
product. The term goods are used primarily by those that wish to abstract from the details of a
given product. As such it is useful in accounting and economic models. The term product is used
primarily by those that wish to examine the details and richness of a specific market offering. As
such it is useful to marketers, managers, and quality control specialists. A service is a non-
material or intangible product - such as professional consultancy, serving, or an entertainment
experience.
Coca Cola - Product

The Coca Cola formula is The Coca Cola Company's secret recipe for Coca Cola. As a publicity
marketing strategy started by Robert W. Woodruff, the company presents the formula as one of
the most closely held trade secrets ever and only a few employees know or have access to. This
Coca Cola formula appears to be the original formula to Coca Cola. It is from the book
“For God, Country and Coca Cola”.

The company Coca-cola is a multinational and it is not limited to one product. Through the years they
have invented and introduced many products than their main cola drinks.

Pepsi - Product

The Pepsi contains basic ingredients found in most other similar drinks including carbonated
water, high fructose corn syrup, sugar, colorings, phosphoric acid, caffeine, citric acid and
natural flavors. The caffeine free Pepsi contains the same ingredients but no caffeine.

Price

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

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

Pepsi - Price

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

Place

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

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

Coca Cola - Place

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

Pepsi - Place

Pepsi again has spread worldwide. Pepsi when entering a new market does not go in alone but it
looks for partners and mergers. Till now Pepsi has collaborated with companies like
Quaker Oats, Frito- lays, Lipton, Starbucks, etc. Pepsi like Coca Cola has spread all over the
world. It is because of this worldwide spread that now it is coming up with Advertisements
which can be broadcasted in the different nations in the world. The recent example with would
be the Pepsi advertisements having David Beckham as it brand ambassador.

Promotion

Promotion is one of the four aspects of marketing. Promotion comprises four subcategories:
Advertising Personal selling Sales promotion Publicity and public relations The specification of
these four variables creates a promotional mix or promotional plan. A promotional mix specifies
how much attention to pay to each of the four subcategories, and how much money to budget for
each. A promotional plan can have a wide range of objectives, including: sales increases, new
product acceptance, creation of brand equity, positioning, competitive retaliations, or creation of
a corporate image. Both the companies Pepsi and coke are famous for their promotions.

Pepsi - Promotion

Pepsi started with its blind taste tests known as the Pepsi Challenge. The challenge is designed to
be a direct response to critics who allege that Coca Cola and Pepsi are identical drinks, with no
meaningful differences. The challenge takes the form of a taste test. At malls, shopping centers
and other public locations, a Pepsi representative sets up a table with two blank cups, one
containing Pepsi and one with Coca Cola. Shoppers are encouraged to taste both colas, and then
select which drink they prefer. Then the representative reveals the two bottles so the taster can
see whether they preferred Coca Cola or Pepsi. If Pepsi is revealed, the shopper is given a small
prize. The implication is that Pepsi tastes better than Coca Cola, and thus consumers should
purchase Pepsi. In blind taste tests, more consumers prefer the taste of Pepsi to that of Coca Cola.
Because Coca Cola was the historical leader, more people expected that they'd prefer and select
Coca Cola. Their surprise at picking Pepsi in the blind taste test (products were served in
unmarked cups) helped change their minds about which product they prefer. Capturing this on
film, Pepsi turned this into a memorable TV campaign that lasted many years. Also ad-
campaigns are put up on the television by both the players.

Coca Cola - 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. Coca Cola 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. Coca Cola's red color catches attention easily and
also the Diet Coca Cola which it introduced was taking the Cake, as Pepsi has not come out with
this in India. Ever since Coca Cola's entry in India in 1993, Coca Cola made a comeback (after
quitting in 1977), in October 24 in Agra, the city was flooded by trucks, there wheelers, tricycle
cards-all with huge red Coca Cola-emblazoned umbrellas. Retailers were displaying their Coca
In the case of soft drinks the Advertisement is the main promotional activity. The companies are
investing millions of rupees on Ads. They are preparing various types of Ads targeting different
category of People. They are preparing the Ads very innovatively in the way to attract the
customers and against their competitor. Through the Ads the company will create the feeling in
the customers mind that this drink is good and should go for that drink only. Many customers
will go for same brands because of the influence of the advertisements only. Some Ads will hurt
the ego feeling of the customers and through that way also they will attract the customers. In
these ways promotional activities plays a vital role in the sales increase of a product as well as it
will create a brand image in the customers mind.

Mission & Objectives of Pepsi

According to the company‟s official website, PepsiCo Incorporated‟s mission is to make this
company: “the world‟s premier consumer products company, focused on convenient foods and
beverages. Pepsi Co. strives to produce healthy financial rewards to investors as it provides
opportunities for growth and enrichment to its employees, so the overall mission of Pepsi Co. is
to increase the value of shareholder's investments. This is achieved through sales growth, cost
controls and wise investment of resources. Pepsi Co. believes that their commercial success
depends upon offering quality and value to their consumers and customers providing products
that are safe, wholesome, economically efficient and environmentally sound and providing a fair
return to their investors while adhering to the highest standards of integrity.

Concentration of resources on growth of businesses through internal growth and carefully

selected acquisitions Pepsi Co. has adopted a plan for growth by continually addressing the
opportunities and risks associated with the global marketplace. The corporation's success reflects
their continuing commitment to growth and a focus on those businesses where they can drive
their own growth and create opportunities. Contribute to the quality of life in communities. Pepsi
Co. believes that as a corporate citizen, it is responsible to contribute to the quality of life in the
communities it serves. This policy is implemented through support of social agencies, projects,
and programs. The company also supports employee volunteer activities through contributions of
time, talent, and funds. Each Pepsi Co. division is responsible for its own giving program with
corporate giving focused on supporting employee volunteer activities.
The strategic objectives seem to address most of the strategic problems facing Pepsi Co. For
example, the risk that demand for Pepsi Co.‟s products may be adversely affected by changes in
consumer preferences is addressed by the strategic objective of caring for customers and their
changing needs and wants. The issue of damage to Pepsi Co.‟s reputation that could have an
adverse effect on its business is addressed by the company‟s objective of respecting employees,
vendors, customers, and by its commitment to diversity, and by its commitment to candor and
openness. Pepsi Co. is among the world‟s largest consumer products companies. In fact, it is one
of the largest companies in the world. Pepsi Co. is focused on various strategic initiatives that it
believes will drive growth and ensure the company‟s success. When considering whether to
change the mission and objectives, it is important consider the impact of such a change on the
company‟s long-term strategies. It is also important to note that PepsiCo reported a sales revenue
increase of 8 percent for fiscal year 2006 compared to 2005. In 2006 Pepsi Co. also reported net
income of more than $5.6 billion representing a 4 percent increase relative to fiscal year 2005.
Whatever Pepsi Co. is doing, it seems to be doing well. The biggest risk associated with a change
in mission and objectives would be a loss of focus and a loss of momentum (PepsiCo Vision and
Strategy).

Mission & Objective of Coca Cola

Our mission statement is to maximize shareowner value over time. In o r d e r t o a ch i

eve t his mi ssi on , w e m us t cr e a t e v a l u e f o r a l l t h e co ns t r a i n t s w e se r ve,
including our consumers, our customers, our bottlers, and our communities. The Coca Cola
Company creates value by executing comprehensive business strategy guided by s ix
key beliefs:

1. Consumer demand drives everything we do.

2. Br and Coca C ola i s the core of our bus iness

3. We w ill ser ve consumers a broad selection of t he

n o n a l c o h o l i c r e a d y - t o – d r i n k beverages they want to drink throughout the day.

4. We w il l be the best mark eters i n the wor ld

5 . We w i l l t h i n k a n d a c t l o c a l l y .

6. We w il l lea d as a m odel cor por ate ci ti zen.

The ultimate objectives o f o ur b us iness stra tegy are to increase volume , expand
our share of worldwide no nalco ho lic ready to drink beverages sales, maximize our
long- term cash flows, and create economic value added by improving economic profit. The
Coca Cola system has more than 16 million customers around the world that sell s
or serves our products d irec t ly to consumers. We keenly focus on enhancing value
for these c us t o m e r s a n d h e lp in g t h e m gr o w t he i r b e v e r age b usinesses.
We s t r i v e t o u nd e r s t an d each customer‟s business and needs, whether that customer is a
sophisticated retailer in a developed market a kiosk owner in an emerging market. T h e r e a r e
nearly 6 million people in the world who are potential cons
umers o f o u r company‟s product. Ultimately, our success in achieving our mission depends on
our ability to satisfy more of their beverage consumptio n demands and our ability to add
value for custo mers. We achieve this when we place the r ight products in the r ight
markets at the right time.

Strategies adopted by Coca Cola & Pepsi

1.) Promotion

Pepsi: 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.

Coca Cola: 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.
Coca Cola 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”.

2.) 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.

3.) Price

Pepsi: 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. 18 versus Thums Up‟s Rs. 9, in April, 1996, its 1.5
liter 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.

Coca Cola: 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.

From the above picture we can observe that from origin itself Pepsi Company has been changing
its Logos but Coca Cola Company has not at all changed its Logo form the beginning. From this
we can understand that Pepsi Company has been trying to create some place in a differently with
its new Logos where as Coca Cola Company tried to fix the same Logo as brand name.
Previously the name of Pepsi is Pepsi-Cola, and now it is changed to Pepsi. The reason for
changing the Logos of Pepsi continuously was it merged many of the largest Food Companies
with Pepsi like Tropicana, Fritos Lay and Galaxy Co. and etc. every time when merged with any
Company it changed its Logos, because of this reason Pepsi became the largest food based
products producer in the world. Coke Company is confined to the soft drink production only. As
Coca Cola Company has not changed its Logo, it is totally fixed in the minds of the people of the
world. The people of the world have somewhat confusion on the Logo of Pepsi Company as it
changed its Logos Continuously.

Even though Pepsi Company changed its Logos continuously, it has not changed its slogans that
much frequently. But in case of Coca Cola Company, it has not at all changed its Logo but
changed its slogans very frequently, sometimes thrice and trice‟s a year. From this it is
concluded that Pepsi Company tried to create a brand image of the Company in the minds of the
customers using its different Logos but the same Slogans about the products. But in case of Coca
Cola Company it tried to create a brand image of the Company with the same Logo and different
Slogans about the products. In this manner the two giant Companies in the soft drinks industry
compared and differentiated with each other.

This cola wars became very common to the soft drink Companies. Soft drinks became a part of
everyday life of the people in all over India and other countries of the world. The pop culture has
made resisting the temptation of sugar based carbonated beverages virtually impossible for most.
The soft drink war between Pepsi and Coca Cola keep on going and increasing day by day. They
are using the different techniques to attract the customers towards their products mainly the cola
products.

Pepsi Company is using excellent marketing strategies, such as celebrity appearances to sell their
products where as Coca Cola‟s realistic approach has placed them at the top of the soft drink
industry, mainly in the case of cola sales. We can observe the Cola war through the Advertising
of the two companies in the television. They prepare the Ads to compete with one another. They
will hire the famous persons and the celebrities for their Ads. They will invest lots of amount on
advertising. Through the advertising only the sales of the soft drinks are increased. Even though
Pepsi trying to get the No-1 place in the soft drinks industry the statistics have shown that they
are not able to get that position when compared to Coca Cola Company for the past few years.
In case of Advertising Pepsi dominated Coca Cola because most of the customers are attracted
toward the Pepsi Company‟s Ads only not to the Coca Cola Company‟s Ads because Pepsi is
spending more on advertising preparation when compared to Coca Cola‟s Company. Pepsi
Company is using the famous celebrities when compared to Coca Cola Company and this
increases the influence of the advertising on the customers. Both companies are conducting their
operations successfully in more than 200 countries in the world. The war is going on in every
country all over the world. Pepsi changed its Logos frequently 9 times from its origin but Coke
Company has not at all changed its Logos, this is a great thing that we can observe.

Financial comparison of Pepsi and Coca Cola

During 2008, the two companies turned in a remarkable similar set of financial results.

Pepsi Company generated $20.4 million throughout India, whereas Coca Cola Company
generated $20.5 million. Here Coca Cola Company earned more money
when compared to Pepsi in India. So Coca Cola dominated Pepsi in terms of the
revenue generation.

Pepsi Company earned $2.2milion in net profit and Coca Cola Company earned
$2.2million net profit. Here the two companies are earning profits equally. So
we can understand that these two companies are competing with each other
in an equal position. For this they are adopting new strategies for the growth of
their revenue and the profits.

Pepsi Company generated free cash flow of $2.9 billion, whereas Coca Cola Company also
generated the same amount of $2.9 million of free cash flows.

Criteria Pepsi Coca Cola

Sales Growth 12.8 % 12.0 %
Gross Margin 69.6 % 61.1 %
Net Margin 10.7 % 10.6 %
 CHAPTER III

DATA ANALYSIS AND INTERPRETATION

Q.1) Do you consume soft drinks, if yes, which one?

Status No. of Respondents Percentage

Pepsi 29 58%

Coca Cola 21 42%

Total 50 100%

Table no.1: Responses of the preferences of respondents

42%
Pepsi
Coca Cola
58%

Figure no. 1: Show the preferences of respondents

Analysis: 29 respondents consume Pepsi which are 58% & 21 respondents consumes Coca Cola
which are 42%.

Conclusion: Most of the respondents prefer to consume Pepsi over Coca Cola because of the
taste & popularity.
Q.2) How often do you consume soft drinks?

Status No. of Respondents Percentage

More than once a day 7 14%

Few times a week 19 38%

Only on special occasions 24 48%

Never 0 0%

Total 50 100%

Table no. 2: Response showing how often respondent consume soft drink.

30%
25% 48%

38%
20%

15%

10% 14%
5%

0%
More than once Few times a a dayweek Never
Only on special occasions

Figure no. 2: Show the nature of employees towards the consumption of soft drink

Analysis: 7 respondents consume soft drink more than once a day, 19 respondents consume
soft drink few times a week & 24 respondents consume soft drink only on special occasions.

Conclusion: Most of the respondents consume soft drink on special occasions like in a party &
some respondent prefer it few times a week mainly in summer season.
Q.3) Since how much time you are using your brand?

Status No. of Respondents Percentage

1-6 months 9 18%

6-12 months 11 22%

1-2 years 8 16%

More than 2 years 22 44%

Total 50 100%

Table no. 3: Responses showing the consumption period of the brand.

25%
44%

20%

15%
22%
10% 18%
16%

5%

0%
1-6 months6-12 months 1-2 years More than 2 years

Figure no. 3: Shows that from how much time the respondents are using their brand.

Analysis: 9 respondents are consuming there brand from 1-6 months i.e., 18%, 11 respondents
are consuming there brand from 6-12 months i.e., 22%, 8 respondents are consuming there brand
from 1-2 years i.e., 16% & 22 respondents are consuming there brand from more than 2 years
i.e., 44%.

Conclusion: Most of the respondents are consuming there brand from more than 2 years because
of the taste & preference.
Q.4) What is the reason behind choosing your brand?

Status No. of Respondents Percentage

Taste 16 32%

Advertisement 9 18%

Easily available 11 22%

Popularity 14 28%

Total 50 100%

Table no. 4: Response showing the reasons behind choosing the brand.

18%
32%
16%
14% 28%
12%
10% 22%
8% 18%
6%
4%
2%
0%

TasteAdvertisement Easily availablePopularity

Figure no. 4: Show the reason behind choice of brand

Analysis: 16 respondents choose their brand on the basis of taste i.e., 32%, 9 respondent choose
their brand on the basis of advertisement i.e., 18%, 11 respondent choose their brand on the basis
of their easy availability i.e., 22% & 14 respondent choose their brand on the basis of their
popularity i.e., 28%.

Conclusion: There are several factors which affects the decisions of the respondents in choosing
their favorite brand of soft drink. Taste & popularity are the main factors for influencing the
choice of brand.
Q.5) Will you change the brand on the basis of price reduction?

Status No. of Respondents Percentage

Yes 28 56%

No 22 44%

Total 50 100%

Table no. 5: Response about the price reduction

44% Yes
No
56%

Figure no. 5: Show the response about price reduction

Analysis: 28 respondents responses that they will change the brand on the basis of their price
reduction i.e., 56% & 22 respondents responses that they will not change the brand on the basis
of their price reduction i.e., 44%.

Conclusion: Most of the respondents are agreed to change the brand on the basis of price
reduction because of the taste of other brand but some respondents are not willing to change their
brand on the basis of price reduction because they are satisfied with their brand.
Q.6) Which brand has creative & appealing advertising of the soft drink company?

Status No. of Respondents Percentage

Pepsi 30 60%

Coca Cola 20 40%

Total 50 100%

Table no. 6: Response about the advertisement of the soft drink company

40%
Pepsi
Coca Cola
60%

Figure no. 6: Show the creative & appealing advertisement of the soft drink brand

Analysis: 30 respondent responses that Pepsi has most creative & appealing advertisement of the
soft drink company i.e., 60% & 20 respondent responses towards in the favor of Coca Cola i.e.,
40%.

Conclusion: 60% of the respondents are satisfied with the creative & appealing advertisement of
Pepsi due to the Cricketer involved in the advertisement & 40% the respondents are satisfied
with the creative & appealing advertisement of Coca Cola because of the Actors doing the
advertisement.
Q.7) Which brand will you prefer in case of Diet cold drink?

Status No. of Respondents Percentage

Pepsi 29 58%

Coca Cola 21 42%

Total 50 100%

Table no. 7: Response about the preference in case of Diet cold drink

42%
Pepsi
Coca Cola
58%

Figure no. 7: Show the result the preference in case of Diet cold drink

Analysis: 58% respondents replied that they would prefer Pepsi in case of Diet cold drink &
42% respondents replied that they would prefer Coca Cola in case of Diet cold drink.

Conclusion: 29 of the respondents are satisfied with the Diet cold drink of Pepsi because of the
taste & color of the soft drink & 21 of the respondents are satisfied with the Diet cold drink of
Coca Cola because of its taste.
Q.8) According to you, which brand of soft drink, is most preferred by the youngsters?

Status No. of Respondents Percentage

Pepsi 36 72%

Coca Cola 14 28%

Total 50 100%

Table no. 8: Response about the preferences of the youngsters

28%

Pepsi
Coca Cola

72%

Figure no. 8: Show the result about the preference by the youngsters

Analysis: 36 respondent responses that youngsters prefer Pepsi i.e., 72% & 14 respondent
responses that youngsters prefer Coca Cola i.e., 28%.

Conclusion: Most of the respondents think that youngsters prefer Pepsi because of its taste &
very few responded that Coca Cola is preferred by the youngsters because of its advertisement.
Q.9) What is the reason behind choosing the particular soft drink brand by the youth?

Status No. of Respondents Percentage

Status symbol 6 12%

Style factor 15 30%

Advertisement by their idols 14 28%

Other factor 15 30%

Total 50 100%

Table no. 9: Response about the reason behind choosing the particular soft drink

16% 30% 30%

14% 28%
12%
10%
8%
6%
4%
12%
2%
0%

Status symbolStyle factor Advertisement by theirOther

idols factor

Figure no. 9: Show the reason behind choosing the particular soft drink brand

Analysis: 12% respondents replied that status symbol affects the preferences of the soft drink by
the youth, 30% respondents replied that style factor determines the preferences of the soft drink
by the youth, 28% respondent replied that the advertisement of the soft drink by their idols
affects the preferences by the youth & 30% respondent replied that other factor affects the
preferences of the youth.

Conclusion: Most of the respondents find that style factor & other factors plays an important
role in choosing the soft drink brand by the youth.
Q.10) Please indicate your satisfaction level with your Cola brand?

Status No. of Respondents Percentage

Highly satisfied 17 34%

Satisfied 29 58%

Not satisfied 4 8%

Total 50 100%

Table no. 10: Response about the satisfaction level

35%
30% 58%

25%
20%
34%
15%
10%
5%
8%

0%
Highly satisfied Satisfied Not satisfied

Figure no. 10: Show the satisfaction level of the respondent

Analysis: 17 respondents are highly satisfied with their soft drink brand which is 34%, 29
respondents are satisfied with their soft drink brand which is 58% & only 4 respondents are not
satisfied with their soft drink brand which is 8%.

Conclusion: Most of the respondents are satisfied with the of products of their soft drink brand
because of the taste and very few are not satisfied with their soft drink brand because of the taste.
 CHAPTER IV

SUMMARY AND CONCLUSION

Result of the Study

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

their preferences.

For the purpose of the study, questionnaires were prepared for the Consumers. Care was taken to
interview all types of consumers, i.e.:-

a. Different age groups

b. Males and females

c. People from different localities, etc.

In all about 50 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 factor the influences a customer while buying a soft-drink was taste. This
was true for all the consumers who were interviewed. The rest of the conclusions as deducted
from the questionnaires are as follows:-

The younger generation preferred soft drinks to the older generation.

a. Children upto 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 soft drink was taste and easy availability. Only if the consumer liked the taste of drink,
he would have it again. 95% of the consumers felt that marketing strategies of the company did
affect the sales of their soft-drink. Marketing strategies made the consumer try a drink for the
first time. The second time round it was the consumers choice himself and not strategy could
affect that. Youngsters were more acceptable to change. They tried different drinks, Cola and
non-Cola. Adults Stick to one and they prefer drinks that do not affect their health, like Limca.

Major number of people found television advertising to be the most effective. Young and the old,
all liked to watch the advertisements on television. Sponsoring events, outdoor advertising and
sales promotion schemes were second choice of the consumers. Under television advertising,
Pepsi came in as the number 1 favorite of the people the advertisement of Shah-Rukh Khan and
the dog was the favorite of the consumers. Their new advertisement of Mirinda Lemon is also
lifted by the people. The advertisement that came in second was, the Coca Cola advertisement of
the people Cricket and the song Must-Kalander going on at the back. These, advertisement
remained most in the minds of the people. Most of the consumers felt that Pepsi was the market

leader in the soft-drink industry in 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 consumer‟s behavior. Companies must take the
initiative of finding out the habits of the consumers and then changing them, in their favors.
Limitations of the study

1. The study made use of both the primary and secondary sources of information. The accuracy
and authenticity of statistics depends of the accuracy of the second source itself. Therefore, the
limitation of the secondary source is also bound to be present in the analysis too.

2. In spite of all the care taken to translate the feelings and opinions of the respondents, the errors
might creep into the study, may be because of the reason that consumers may fail to articulate
their feelings properly.

3. The sample size of 40 respondents is too small to find out the consumer perception. Because
we both were covering Pepsi & Coca Cola both.

4. In some cases, the respondent was not giving us the proper reply. He/she might think that this
is only wastage of time or this might create some problem etc. And as a result he/she has given
some fake answers and fills the questionnaire very casually.

5. The area of study is limited and confined to certain limitation. It is possible that some potential
source might have remained untapped.

6. Since the result has been drawn on the basis of the information provided by the respondents
therefore there is a chance of error.

7. The questioners were in English so many people were avoiding filling the questioners.
 BIBLIOGRAPHY

Books:
1. Martin, D. C. & Bartol, K. M. (2003). Marketing of Beverages: Maintaining system effectiveness,

27(2), 223-230.

2. Parker, R. & Kent, J. (2001). Soft Drink Industries: Criteria and observations, 754-771.

Websites:

1. http://www.pepsi india coorporation.com/corporate_profile.html (last accessed on 7th March 2013)

2. http://www.scribd.com/pepsicola -co/ (last accessed on 8th March 2013)

3. http://seminarprojects.com/Soft Drinks-performance-appraisal(last accessed on 8th March 2013)

4. http://www.famousbusiness.org/docrep/w7505e/w7505e06.htm (last accessed on 10th March 2013)

5. http://www.coca cola corporation.com (last accessed on 11th March 2013)

6. http://www.managementstudyguide.com/soft drink -appraisal.htm (last accessed on 15th March 2013)

7. http://en.wikipedia.org/wiki/Coca Cola.org (last accessed on 16th March 2013)

 APPENDIX

Name:

Age:

Gender:

Profession:

Address:

Q.1) Do you consume soft drinks, if yes, which one?

a.) Pepsi ( ) b.) Coca- Cola ( )

Q.2) How often do you consume soft drinks?

a.) More than once a day ( ) b.) Few times a week ( )

c.) Only on special occasions ( ) d.) Never ()

Q.3) Since how much time you are using your brand?

a.) 1-6 months ( ) b.) 6-12 months ( )

c.) 1-2 years ( ) d.) More than 2 years ( )

Q.4) What is the reason behind choosing your brand?

a.) Taste ( ) b.) Advertisement ( )

c.) Easily available ( ) d.) Popularity ( )

Q.5)Will you change the brand on the basis of price reduction?

a.) Yes ( ) b.) No ( )

Q.6) Which brand has creative & appealing advertising of the softdrink

company? a.) Pepsi ( ) b.) Coca- Cola ( )

Q.7) Which brand will you prefer in case of Diet cold drink?

a.) Pepsi ( ) b.) Coca- Cola ( )

Q.8) According to you, which brand of soft drink, is most preferred by the youngsters?

a.) Pepsi ( ) b.) Coca- Cola ( )

Q.9) What is the reason behind choosing the particular soft drink brand by the youth?

a.) Status symbol ( ) b.) Style factor ( )

c.) Advertisement by their idols ( ) d.) Other factors ( )

Q.10) Please indicate your satisfaction level with your Cola brand?

a.) Highly satisfied ( ) b.) Satisfied ( )

c.) Not satisfied ( )

Q.11) Please indicate your suggestions & recommendations which you would like to give?