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Presentation ON

Group Members
Amrit Pandit Lil Bahadur K.C. Bikash Raj Giri Prabin K.C.

Part I

BY Lil Bdr. K.C.

Contents:
y History y Mission ,Vision ,Objectives, Strategies, Policies y Product Line y Marketing and Distribution and Rivalry with Coke y Swot Analysis, Business Risks and Future Plans

Introduction
y Pepsi-Cola was created in the late 1890s

by Caleb Bradham, a New Bern, N.C. Pharmacist.


y Caleb Bradham first formulated Pepsi

Cola in 1898 in New Bern as a cure for indigestion.


y Exhilarating,

invigorating, aids digestion . Was its first advertisement.

Celeb Bradham

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y He registered the trademark in 1903 and developed a system of bottling franchises. y Pepsi Cola showed strong signs of growth when Donald Kendall became CEO in 1963.

VISION
y PepsiCo's responsibility is to continually improve all aspects of the world

in which we operate - environment, social, economic - creating a better tomorrow than today.

y Our vision is put into action through programs and a focus on

environmental stewardship, activities to benefit society, and a commitment to build shareholder value by making PepsiCo a truly sustainable company.

MISSION
y To make this company the world s premier consumer products

company on convenient foods and beverages. PepsiCo strives to produce healthy financial rewards to investors as it provide opportunities for growth and enrichment to its employees, its business partners and the communities in which it operate. And in everything we do, we strive for honesty, fairness and integrity. So the overall mission is to increase the shareholder s investment value.

OBJECTIVES
PepsiCo overriding objective is to increase the value of our shareholders' investment through integrated operating, investing and financing activities. Their strategy is to concentrate their resources on growing their businesses, both through internal growth and carefully selected acquisitions. Their strategy is continually fine-tuned to address the opportunities and risks of 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.

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PepsiCo believes that as a corporate citizen, it has a responsibility to contribute to the quality of life in our communities. This philosophy is put into action through support of social agencies, projects and programs. The scope of this support is extensive -ranging from sponsorship of local programs and support of employee volunteer activities, to contributions of time, talent and funds to programs of national impact. Each division is responsible for its own giving program. Corporate giving is focused on giving where PepsiCo employees volunteer.

STRATEGIES
y As a consumer products company, PepsiCo does not have

the major environmental problems of heavy industry. Their biggest environ-mental challenge is packaging generated by their products. Packaging is important to public health and a critical component of the distribution system that delivers products to consumers and commercial establishments. To meet both consumer demand and safeguard the environment, they recycle, reuse and reduce packaging wherever possible. Each business is also committed to responsible use of resources required in manufacturing their products.

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y Continually fine-tuned to address the opportunities and risks

of the global marketplace.


y Concentrate our resources on growing our businesses, both

through internal growth and carefully selected acquisitions. Company developed its traditional products and expanded into low-fat and no-fat snacks as well as salsas and dips.

POLICIES
y Employee networks to mentor and support minority & female

employees.
y

Actively and diligently seek out qualified M/WBEs for all possible company requirements. Make every reasonable effort to help qualified M/WBEs to meet company standards. Respect the privacy of all visitors who access and use the companys corporate Web site.
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y Treating all customers with respect, sensitivity and fairness, while

providing some of the greatest products on earth.


y

We respect individual differences in culture, ethnicity and color. PepsiCo is committed to equal opportunity for all employees and applicants. Corporate program for training employees how to work and manage in an inclusive environment.

Present Management of Pepsi

COMMERCIAL BREAK

y.

PRODUCT LINE OF PEPSICO


y PepsiCo is one of the leading food and beverage companies in the

world having a product portfolio ranging from carbonated soft drinks, juices, juice based drinks, health drinks, snack foods, packaged water and health cereals. PepsiCo has always been a responsible corporation guided by their Worldwide Code of Conduct. Recognized as a leading company in areas such as corporate governance, environmental stewardship and social leadership, PepsiCo recognizes responsibility to consumers by providing safe, quality products and offers a diverse range of consumer products to meet everyday needs.

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y PepsiCo makes products like Doritos, Lay's, Cheetos, Fritos, Ruffle potato

chips, Tostitos, Quaker Chewy granola bars, Sun Chips, Rold Gold pretzels, Stacy's pita chips, Smart food popcorn, Pepsi, Mountain Dew, Gatorade, Tropicana Pure premium, Sierra Mist, Propel, Tropicana juice drinks, Dole, SOBE Life Water, Aquafina, Cap'n Crunch, Life cereal, Starbucks ready to drink coffee, Lipton read to drink tea, Quaker oatmeal, Aunt Jemina pancake syrup, and Aunt Jemina pancake mix.

Sales of Pepsi Brands

Part II
By Amrit Pandit

SWOT Analysis

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Strengths
Well-built distribution channel. y To respond quickly on emerging trends and issues such as health and

environmental issues and the development of the PEPSI Generation.

y Able to penetrate the international market. y Strong multinational y Strong brand portfolio y Brand promotion

Weakness
y Targeting only young customers. y Centralized decision making. y Overdependence on Wal-Mart.

Opportunities
y Easy penetration of new product. y Changing social trends( fast foods). y Internet promotion and ordering. y Able to attract young generation.

Threats
y Competitors like Coke. y Health and environmental issues. y Most of the competitors are sing product line. y Non carbonate substitute. y Potential negative government regulations.

Demand for our products may be adversely affected by changes in consumer preferences and tastes or if we are unable to innovate or market our products effectively. Any damage to our reputation could have an adverse effect on our business, financial condition and results of operations. Our financial performance could be adversely affected if we are unable to grow our business in developing and emerging markets or as a result of unstable political conditions, civil unrest or other developments and risks in the markets where we operate.
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Our financial performance could suffer if we are unable to compete effectively. Unfavorable economic conditions of host countries. Fluctuations in foreign exchange rates Our operating results may be adversely affected by increased costs, disruption of supply or shortages of raw materials and other supplies.

Commercial break:

Pepsi's Distribution
Exclusive Contracts with Franchise Bottlers and independent Distributors and Retailers y Wal-Mart Agreements it s competitors y Unilever with Lipton y Starbucks (Frappuccino, Double Shot).

SLOGANS
y y y y y y y y y y y y y y y y

1939 1950: "Twice as Much for a Nickel" 1950: "More Bounce to the Ounce" 1950 1957: "Any Weather is Pepsi Weather" 1957 1958: "Say Pepsi, Please" 1958 1961: "Be Sociable, Have a Pepsi" 1961-1963: "Now It's Pepsi for Those Who Think Young" 1963 1967: "Come Alive, You're in the Pepsi Generation" 1967 1969: "(Taste that beats the others cold) Pepsi Pours It On". 1969 1975: "You've Got a Lot to Live, and Pepsi's Got a Lot to Give" 1975 1977: "Have a Pepsi Day" 1977 1980: "Join the Pepsi People (Feeling Free)" 1980 1981: "Catch That Pepsi Spirit" 1981 1983: "Pepsi's got your taste for life" 1983: "It's cheaper than Coke!" 1983 1984: "Pepsi Now! Take the Challenge!" 1984 1991: "Pepsi. The Choice of a New Generation"
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y y y y y y y y y y y y y y y y y

1984-1988: "Diet Pepsi. The Choice of a New Generation" 1988-1989: "Diet Pepsi. The Taste That's Generations Ahead" 1989-1990: "Diet Pepsi. The Right One" 1989-1992: "Diet Pepsi. The Taste That Beats Diet Coke" 19861987: "We've Got The Taste" 19871990: "Pepsi's Cool" 19901991: "You got the right one Baby UH HUH" 1991: "Yehi hai right choice Baby UH HUH" (India) 19911992: "Gotta Have It"/"Chill Out" 19921993: "Be Young, Have Fun, Drink Pepsi" 19931994: "Right Now" 19941995: "Double Dutch Bus" 1995: "Nothing Else is a Pepsi" 19951996: "Drink Pepsi. Get Stuff." 19961997: "Pepsi: There's nothing official about it" 19971998: "Generation Next" 19981999: "It's the cola"

FUTURE PLANS
y Pepsi plans to begin a Foursquare partnership in June

to drive customers into retailers selling their products

y PepsiCo is taking steps toward making their products

healthier.
y Pepsico plans to invest U.S. $1 billion in China over the

next four years


y Pepsi is expanding and investing $500 million in India.

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Part III
By: Bikash Raj Giri

History of Coca-Cola
Invented by Doctor John Pemberton in Atlanta Georgia in 1886. Frank Robinson, his bookkeeper, gave the first cursive script of Coca Cola; the following letters remain a part of its famous logo till date. The soft drink was first sold to the public at the soda fountain in Jacob's Pharmacy in Atlanta on May 8, 1886. The expenses in making it were $20 higher than the price it was sold for, thus a loss for its maker. It was sold at a price of 5 cents per glass. Asa Griggs Candler bought the formula from Pemberton for $2300 and incorporated it as the Coca Cola Company in 1888.

Doctor John Pemberton

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Introduction to Coca-Cola
y Type: Carbonated soft drink y Manufacturer: The Coca-Cola Company y Country of origin: United States y Introduced: 1886 y Flavor: Coca-Cola, Cola Cherry, Cola Vanilla, Cola Green Tea,

Cola Lemon, Cola Lemon Lime, Cola Lime Cola orange and Cola Raspberry

Vision, Mission and Objectives of Coca-Cola

Our Vision
The world is changing all around us. To continue to thrive as a business over the next ten years and beyond, we must look ahead, understand the trends and forces that will shape our business in the future and move swiftly to prepare for what's to come. We must get ready for tomorrow today.

Our Mission
Our mission statement is to maximize shareowner value over time. In order to achieve this mission, we must create value for all the constraints we serve, including our consumers, our customers, our bottlers, and our communities. The Coca Cola Company creates value by executing comprehensive business strategy guided by five key beliefs: Consumer demand drives everything we do. Brand Coca Cola is the core of our business. We will serve consumers a broad selection of the nonalcoholic ready-to drink beverages they want to drink through out the day. We will be the best marketers in the world. We will think and act locally.

Objectives
The ultimate objectives of our business strategy are to increase volume, expand our share of worldwide nonalcoholic ready to drink beverages sales, maximize our long-term cash flows, and create economic value added by improving economic profit

SWOT Analysis

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Strengths

Strong marketing and advertising .

Coca Cola was the first commercial sponsor of Olympic Games and it has

been sponsoring the FIFA and cricket world cup events.

Strong Financial reserves and returns .

y 80% of its profit comes from 20% of its loyal customers.

Weakness
y The company relies heavily on Coca-Cola drink only. y Coca-Cola has approximately 400 different types of drink however most of them are rarely seen and unknown. y Carbonated drink like Coca-Cola is not beneficial to our health.

Opportunities
y Launch other coca-cola variants in untapped countries. y Growing Hispanic population in US. y It has the available money to put its other beverages on

the market and make them known to the people.


y Opportunity to widen the gap between its competitors.

Threats
Intense competition from Pepsi. y New entrants are gaining market share. y Decrease in Coca Cola brand value in last few years. y It has some negative health effect. y Economy instability in third world countries, also political instability.

Top Ten Carbonated Soft Drinks Companies in USA(2010)

Source: www.beveragedigest.com

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Top Ten CSD in USA(2010)

Source: www.beveragedigest.com

Coke VS Pepsi Shares of Total Soft-Drink Sales(1996)

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Change in bottle of Coca-Cola with time

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Change in logo of Coca-Cola with time

Some drinks of Coca-Cola


y Coca-Cola y Coca-Cola Black Cherry y y y y y y y

Vanilla Coca-Cola C2 Coca-Cola Light Coca-Cola Citra(Only Japan) Coca-Cola with Lemon Coca-Cola with Lime Coca-Cola Raspberry Coca-Cola Orange

ThumbsUp Kinley Limca Mazza Splash Sprite Sprite 3G Sprite Ice Sprite Light Sprite Zero

y Fanta y Fanta J-Lemon y Fanta Lactic

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Name Coca-Cola Caffeine-Free CocaCola Coca-Cola Cherry New Coke/Coca-Cola II Coca-Cola with e on Coca-Cola Vanilla

Launched 1886 1983 1985 1985

Discontinued ---------------------2002

Notes Original version of Coca-Cola Caffeine free version of Coca-Cola

Still available in Yap.

2001

2005

Still available in China, Spain, en ark, orea, Finlan , er any, etc. Re-intro uce in June 2007 by popular e an

2002 2007(reintro uce )

2005

Coca-Cola Caffeine Free Cola

New Coke

Coca-Cola with Vanilla

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Coca-Cola with C2 Coca-Cola with Lime Coca-Cola Raspberry Coca-Cola with Zero Coca-Cola M5 Coca-Cola Black Cherry Vanilla Coca-Cola Black

2003 2005 June 2005 2005 2005 2006 2006

2007 -----End of 2005 ------------Mid of 2007 Beg of 2008 ------------------------

Was only available in Japan, Canada and USA. Available in Belgium, Netherlands, Singapore, Canada, UK and USA Was only available in New Zealand. --------Only available in Germany, Italy, Spain, Mexico and Brazil. Was replaced by Vanilla Coke in June 2007. Only available in USA, France, Canada, Bosnia, Czech Republic, Bulgaria, and Lithuania. Only available in Bosnia, New Zealand and Japan. Only available in France and Belgium. Only available in UK and Gibraltar(Sold as Mezzo Mix in Germany, Austria and Switzerland)

Coca-Cola Citra Coca-Cola Light Sango Coca-Cola Orange

2006 2006 2007

Cola War: Coca-Cola VS Pepsi-Cola


Coca-Cola ruled the soft drink market throughout 1950 s, and 1960 s where coke outsold Pepsi 2 to 1. However between 1976 and 1978, the growth rate of Coke dropped from 13% annually to 2% and Pepsi was finding heady triumphs. Then came another coup from the Pepsi management Pepsi Challenge where people showed a clear preference to Pepsi. This launched is so called as cola wars. Coca-Cola, in defense, conducted its own taste test, however the result was the same. The credit for all such changes goes to the effective advertising strategies of Pepsi over Coke, though Coke was outspending Pepsi in advertising by $100billion.


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By 1979, Pepsi was closing the gap with Coca-Cola where Coca-Cola

had only a lead of 6%.


By 1984, the total market share of Coca-Cola was 21.7% while the same

was 18.8%, leaving just a gap of 2.9%.


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In 1972, the 18% of the soft drinkers exclusively drank Coca-Cola only while only 4% drank Pepsi. In 1982, the picture changed to 12% for Coca-Cola while 11% for Pepsi.
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Pictures showing people taking Pepsi Challenge

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y The credit for all such changes goes to the effective advertising

strategies of Pepsi over Coke, though Coke was outspending Pepsi in advertising by $100billion.
y With strong market share erosion of the late 1970 s and early 1980 s,

taste was suspected as the chief culprit in the Coke s decline and marketing research seemed to confirm this.
y In September 1984, the technical division developed a sweeter flavor

and 55% of 191,000 approved it over Pepsi and the original version of Coke.

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But the results was so shocking that when the executives started receiving barrage of angry letters and 5000 calls per day stating Coke as an American symbol and as a long time friend that suddenly betrayed them. Coca-Cola, in response, re-introduced original version of Coke as Coke Classic and kept new flavor in addition. After the re-introduction of old version of Coke , for the full year of 1985, operation rose 10% and profit 9%.

New Coke
Type: Cola Manufacturer: The Coca-Cola Company Distributor: Coca-Cola Enterprises Country of origin: USA Launched: April 23,1985

Coke Classic
Type: Cola Manufacturer: The Coca-Cola Company Distributor: Coca-Cola Enterprises Country of origin: USA Launched: July 10, 1985

Rivalry between Coke and Pepsi in India


In this Cola War between Coke and Pepsi, Coke has always beaten Pepsi and Pepsi has always been number 2 trying harder and harder to beat Coke at its game.

By most accounts, Coca-Cola was India's leading soft drink until 1977 when it left India because of economic policy of India at that very time.

Over the next few years, a host of local brands emerged in India such as Campa Cola, Thumps Up, Gold Spot, Limca etc

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In 1988, PepsiCo gained entry to India by creating a joint venture with

the Punjab government-owned Punjab Agro Industrial Corporation (PAIC) and Voltas India Limited.
Pepsi was marketed and sold as Lehar Pepsi until 1991 when the use of

foreign brands was allowed under the new economic policy and Pepsi ultimately bought out its partners.
y In 1993, The Coca-Cola Company returned in India due to India's

Liberalization policy

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In 1993, when Coca-Cola re-entered the Indian market, it soon realized Pepsi

was already in a better position creatively entering the Indian market in the 1980 s in advance of liberalization by way of a joint venture.
With the entry of Pepsi and Coke in India, almost the entire market of Campa

Cola, Thumps Up, Gold Spot and Limca went under their control.
Coca-Cola soon cemented its presence with a deal with Parle, which had a 60%

market share in the soft drinks segment with its brands Limca, ThumsUp and Gold Spot. This provided a advantage of physical manufacturing, bottling and distribution assets to the company.

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In 2005, The Coca-Cola Company and PepsiCo together held 95% market share of softdrink sales in India. Coca-Cola India's market share was 52.5%. Coca-cola is far head in carbonated soft drink competition where as Pepsi performing well in snack segmentation comparison of Coca-Cola.

Pesticide Issue in India


In 2003, the report by Center for Science and Environment(CSE) said, Drinks

produced and marketed in India by the two companies, Coke and Pepsi, contained toxic pesticides and insecticides .
Pepsi's soft drink products had 36 times the level of pesticide residues permitted

under European Union regulations; Coca Cola's 30 times.


Coca-Cola had registered a 11 percent drop in sales after the pesticide allegations

were made in 2003.

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The tests made headlines in newspapers across the country , and the

Indian Parliament discontinued the sale of Pepsi and Coke in its cafeteria, while young members of various political parties and student groups demanding a ban smashed bottles of the two brands on streets across the country.
The two companies said, Research from overseas labs conclude the

safety of their products in India and the results of CSE are inconclusive .
Even India s Health Minister A. Ramadoss questioned the validity of

the methods and the environmentalist used to test the sodas.

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Videos Showing Advertising Rivalry Between Coke And Pepsi

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Ethical Issues
Hijacking bottlers and retailers. Painting of retail outlets of each other s overnight. Making fun of cricketer by the Coke.

REFERENCES
http://www.scribd.com http://online.wsj.com http://en.wikipedia.org www.cocacola.com www.pepsi.com www.pepsico.com

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