Done 97 Coca Cola

7/30/2019 Done 97 Coca Cola

1/84

A PROJECT REPORT

ON

IMPACT OF MARKETING STRAGIES OF COCA COLA AND

PEPSI ON CONSUMER/RETAILER BUYING BEHAVIOUR

Submitted to A & M INSTITUTE OF MANAGEMENT AND

TECHNOLOGY, PATHANKOT in partial fulfillment of

The requirements for the degree of

MASTER OF BUSINESS ADMINISTRATION

(2011-2013)

Submitted By:

VINAYAK MAHAJAN

Roll no-1172059Project Guide:

Mrs. NITIKA PUNIANI

Assistant Professor

A & M INSTITUTE OF TECHNOLOGY AND MANAGEMENT

PATHANKOT


2/84


DEPARTMENT OF MANAGEMENT

TO WHOMSOEVER IT MAY CONCERNThis is to certify that the project report titled IMPACT OF MARKETING

STRAGIES OF COCA COLA AND PEPSI ON

CONSUMER/RETAILER BUYING BEHAVIOURcarried out by MR

VINAYAK MAHAJANhas been accomplished under my guidance & supervisionas

a duly registered MBA student of the A & M INSTITUTE, PATHANKOT. This

project is being submitted by him in the partial fulfillment of the requirements for the

award of the Master of Business Administration from PUNJAB TECHNICAL

University.

HIS dissertation represents his original work and is worthy of consideration for the

award of the degree of Master of Business Administration.

___________________________________(Name & Signature of the Faculty Advisor)

Title: ______________________________

Date: ______________________________

Date:


3/84


DEPARTMENT OF MANAGEMENT

DECLARATION

I,, hereby declare that the work presented herein is genuine work done originally

by me and has not been published or submitted elsewhere for the requirement of a

degree programme. Any literature, data or works done by others and cited within this

dissertation has been given due acknowledgement and listed in the reference section.

_______________________(Student's name & Signature)

(Registration No.)

Date: __________________


4/84

ACKNOWLEDGEMENT

It is indeed a pleasure doing a project on . I am grateful to sit rishi dogra (hod) for

providing me this opportunity. IMPACT OF MARKETING STRAGIES OF

COCA COLA AND PEPSI ON CONSUMER BUYING BEHAVIOUR

I owe my indebtedness to My Project Guide Mrs nitika puniani, for her keen

interest, encouragement and constructive support and under whose able guidance I have

completed out my project. She not only helped me in my project but also gave me an overall

exposure to other issues related to retailing and answered all my queries calmly and patiently.

I take the pleasure to express thanks to all my colleagues for many useful discussions

and cooperation during the course of the project work.


5/84

PREFACE

For management careers, it is very important to develop managerial skills .In

order to achieve positive and concrete results, along with theoretical concepts,

the exposure of real life situation existing in a corporate world is very much

needed. Therefore, it becomes necessary to undergo any project work. Practical

supplement the theoretical studies i.e; it covers what is left uncovered in

classroom It exposes a student to invaluable treasure of experience.


6/84

TABLEOF CONTENT PAGE NO.

1 GENERAL INTRODUCTION ABOUT SECTOR

1.1Profile of coca cola

1.2Profile of pepsico

2 OBJECTIVE3 SCOPE

4 NEED

5 REVIEW OF LITERATURE

6 RESEARCH METHODOLOGY

7 ANALYSIS OF DATA

8 LIMITATION

9 FINDINGS

10 RECOMENDATION

11 CONCLUSION & SUMMARY

11.1 SWOT ANALYSIS OF COCA COLA11.2 SWOT ANALYSIS OF PEPSI

12 BIBLIOGRAPHY

13 ANNEXURE


7/84

LIST OF FIGURES

S.NO LIST OF FIGURES PAGE NO

1.1 WHICH BRAND IS PREFERABLE

1.2 WHY IT IS PREFERED

1.3 WHICH BRAND HAVE GOOD ADVERTISINGTECHNOQUE

1.3 AFFECT OF ADVERTISING

1.5 TYPE OF BUSINESS

1.6 REASON FOR CONSUMER PREFERENCE

1.7 AFFECT OF PROMOTIONAL SCHEME ON SALE


8/84

LIST OF GRAPHSS.NO LIST PF GRAPHS PAGE NO

1.2 WHICH COMPANY HAVE BETTER ADVERTISING

1.3 WHICH SEGMENT IS MORE DEMANDED

1.1 WHICH FORM OF SALE PROMOTION STRATEGYIS EFFECTIVE

1.4 REASON FOR MAJOR SALE OF SOFT DRINK

1.5 ATTRIBUTE WHICH HELP TO DECIDE WHICHBRAND OF SOFT DRINK TO KEEP


9/84

GENERAL INTRODUCTION ABOUT THE SECTOR

Fast Moving Consumer Goods (FMCG), also known as Consumer Packaged Goods (CPG)

are products that have a quick turnover and relatively low cost. Consumers generally put less

thought into the purchase of FMCG than they do for other products. The Indian FMCG

industry witnessed significant changes through the 1990s. Many players had been facing

severe problems on account of increased competition from small and regional players and

from slow growth across its various product categories. As a result, most of the companies

were forced to revamp their product, marketing, distribution and customer service strategies

to strengthen their position in the market.

By the turn of the 20th century, the face of the Indian FMCG industry had changed

significantly. With the liberalization and growth of the Indian economy, the Indian customer

witnessed an increasing exposure to new domestic and foreign products through different

media, such as television and the Internet. Apart from this, social changes such as increase in

the number of nuclear families and the growing number of working couples resulting in

increased spending power also contributed to the increase in the Indian consumers' personal

consumption. The realization of the customer's growing awareness and the need to meet

changing requirements and preferences on account of changing lifestyles required the FMCG

producing companies to formulate customer-centric strategies. These changes had a positive

impact, leading to the rapid growth in the FMCG industry. Increased availability of retail

space, rapid urbanization, and qualified manpower also boosted the growth of the organized

retailing sector.

HLL led the way in revolutionizing the product, market, distribution and service formats of

the FMCG industry by focusing on rural markets, direct distribution, creating new product,

distribution and service formats. The FMCG sector also received a boost by government led


10/84

initiatives in the 2003 budget such as the setting up of excise free zones in various parts of the

country that witnessed firms moving away from outsourcing to manufacturing by investing in

the zones.

Though the absolute profit made on FMCG products is relatively small, they generally sell in

large numbers and so the cumulative profit on such products can be large. Unlike some

industries, such as automobiles, computers, and airlines, FMCG does not suffer from mass

layoffs every time the economy starts to dip. A person may put off buying a car but he will

not put off having his dinner. Unlike other economy sectors, FMCG share float in a steady

manner irrespective of global market dip, because they generally satisfy rather fundamental,

as opposed to luxurious needs. The FMCG sector, which is growing at the rate of 9% is the

fourth largest sector in the Indian Economy and is worth Rs.93000 crores. The main

contributor, making up 32% of the sector, is the South Indian region. It is predicted that in the

year 2014, the FMCG sector will be worth Rs.1,80,000 crores. The sector being one of the

biggest sectors of the Indian Economy provides up to 4 million jobs.


11/84

INDUSTRY PROFILE

ORIGIN AND DEVELOPMENT OF THE INDUSTRY

Soft drink industry scenario all over the world is almost same with two major players i.e.

Pepsi Co. and Coca-Cola having the major portion in the pie. The other major player in the

industry is Cadbury-Schweppes and some local player in individual countries. The major

components of the industry consist of the concentrate manufactures, bottles and the sales and

distribution network of the companies the rule and responsibilities of each of them are

different.

The major activity taken up by the concentrate manufactures relates to the production of the

basic product which is battled by the battling plants mostly independents and subsequently

sold through the established distribution set ups of the respective companies. Incidentally a

lions share of the total sales of the product of most of the companies is through fountain a

sale which sums to be the most popular outlet in the western countries. Through in India

fountain sales from a very insignificant part of the sales revenue. During the initial stage both

soft drink majors used a network of independent bottlers to bottle and market their products.

Independents bottling arose primarily because it was not possible to create an effective

organization for operating a vertically integrated company with hundreds of geographically

separated manufacturing unit and local delivery operations given the limited transportation

and communication system of the time and the lack of sophisticated financial and

management controls.

Although Coca-Cola and Pepsi Co. are premier marketing companies the fundamental

competitive advantage that allowed them to compete so effectively lies in their ability to

operate through a very cumbersome distribution system.

In India after the exit of coke in 1977 Parley and pure drinks controlled the Indian Soft

Drinks market. By the end of 1970 Campa-Cola was practically alone in Cola market .Parleys


12/84

introduced Thums up in the beginning of 1980s. By the end of 80s Parley with Limca, gold

spot and Thums up emerged as clear winner with around 60% market share.

In the year 1985 Pepsi tried to enter into India when it teamed up with RPG group. This

proposal as rejected on the grounds that the import of concentrate could not be agreed and the

use of foreign brand name was not allowed. In year 1988 Pepsi again floated a project this

time in collaboration with Punjab agro Corporation (PIAC) and Voltas India Limited and

succeeded. Finally in June 1990 Pepsi was launched in India under the brand name of Lehar

Pepsi.

The most strategic step taken by Coca Cola was the purchase of Parley brands. With this coke

instantly had the ownership of countries tap soft drinks brands as well as got access to Parleys

extensive 54 plants bottling as well as a pre set distribution net work. This purchase gave

coke an over might lead occur rival Pepsi which had came almost 5 year earlier.


13/84

GROWTH AND PRESENT STATUS OF THE I NDUSTRY

The total value of the soft drink industry was $48 billion in 1990s. The average in the states

48 gallons per year. Industry analyst contended that the soft drink industry had plateaued, and

that total consumption was unlikely to increase significantly in the near future. As a

consequence, the cola wars were moving to international markets. Although, after the mid

90s both company found a different strategy fueled by the twin engines of innovation and

diversity. Consumers are drinking a widening assortment of beverages. There is increasing

demand for health and nutrition drinks (juices and juice-based products), rejuvenation drinks

(tea and coffee), and replenishment drinks (sports drinks and water). Coke, the worlds

largest soft drink company with a 45% share of the worldwide soft drink market, earned 80%

of its profits outside of the United States in 1993. In according to this, Pepsi, with only 15%

of its beverage operating profits coming from overseas was using guerilla warfare to attack

Coke in selected international markets. Americans consumed 23 gallons of soft drinks a year

in 1970 compared to 48 gallons in 1993. This growth was fueled by increasing availability

and affordability of soft drinks in the marketplace, as well as the introduction and growth of

diet soft drinks. And then become stabile. For improve profits on the saturated market was

possible by cost reduction, new products but not cannibalize your products, and better value

chain that returns you as a competitive advantage. It was not easy. There were many

alternative to soft drinks ; coffee, beer, milk, tea, bottled water, juices, powdered drinks,

wine, distilled spirits, and tap water. The 1980s Pepsi and Coke transformed their businesses.

These consumer-oriented businesses experienced changes in the forces impacting key

strategy areas: investment; distribution channels; trade and manufacturer relations;

shareholder pressure; marketing and promotional programme design; new competitors and

proliferation of products across their traditional categories, etc. Using 1978 as a base year, the

Consumer Price Index (CPI) grew at an average rate of 5.9%, compared with soft drink price


14/84

growth 3.8%. Consumer demand appeared to be sensitive to price increases. The cola

segment of the soft drink industry held the dominant (68%) share of the market in 1992,

followed by lemon/lime with 12%, pepper flavor 7%, orange 3%, root beer 2%, and others

8%. Coke and Pepsi had a combined 73% of the soft drink market.

Pepsi and Coca-Cola have more than 200 different products globally in 2000.


15/84

FUTURE OF THE INDUSTRY

Consumers are drinking a widening assortment of beverages. There is increasing demand for

health and nutrition drinks (juices and juice-based products), rejuvenation drinks (tea and

coffee), and replenishment drinks (sports drinks and water). Soft drink companies intend to

fulfill the needs of consumers for every occasion at every stage of their lives. Both Pepsi and

Coca Cola pronounced their self a total beverage company. More and more, people are

turning to noncarbonated beverages to give them vigor and energy. Whether its for a lift

during the day or for enjoyment after the workday ends, consumers are embracing ready-to-

drink teas and coffees. With every new discovery of the health benefits of teas, demand

increases even more.

The basic product of soft drink companies cola. Today, cola is the most consumed

beverage, still in the world. Even as lifestyles change all over the world, there is one beverage

that remains the essential element for all people water. Soft Drink Companies are also

focusing on their portfolio of replenishment beverages to meet differing local tastes for water

and to provide sports drinks that quench the thirst of people with active lifestyles.


16/84

PROFILE OF COCA COLA

The Mission Statement of the Coca Cola Company

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

six key beliefs:

1. Consumer demand drives everything we do.

2. Brand Coca Cola is the core of our business

3. We will serve consumers a broad selection of the nonalcoholic ready-todrink

beverages they want to drink through out the day.

4. We will be the best marketers in the world.

5. We will think and act locally.

6. We will lead as a model corporate citizen.

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.

The Coca Cola system has more than 16 million customers around the world that sells or

serves our products directly to consumers. We keenly focus on enhancing value for these

customers and helping them grow their beverage businesses. We strive to understand each


17/84

customers business and needs, whether that customer is a sophisticated retailer in a

developed market a kiosk owner in an emerging market.

There are nearly 6 million people in the world who are potential consumers of our companys

product. Ultimately, our success in achieving our mission depends on our ability to satisfy

more of their beverage consumption demands and our ability to add value for customers. We

achieve this when we place the right products in the right markets at the right time.


18/84

ORIGIN OF THE ORGANIZATION

Coca-Cola is a carbonated soft drink sold in almost all the countries of the world. Coca-Cola

is manufactured by The Coca-Cola Company and is often referred to as Coke. Coke is one

of the most recognizable brands in the world.

Coca-Cola was invented by John Stith Pemberton in Covington, Georgia in

May 1886. The beverage was initially a coca wine and was called Pembertons French Wine

Coca. After Atlanta and Fulton County passed Prohibition legislation, Pemberton made a

carbonated, non-alcoholic version of French Wine Cola and called it Coca-Cola. Coca leaves

from South America were added as a stimulant to the beverage along .with kola nuts which

were added to give flavor to the drink. Due to them the name Coca-Cola was given to the

beverage. Asa Candler, who was also a pharmacist of Atlanta, bought the formula for Coca-

Cola in 1887 from John Pemberton for $2,300. Asa Candler marketed Coke

aggressively and was responsible of the dominance of the world soft drink market by Coke.

During Pembertons time five ounces of coca leaf were added per gallon of the syrup which

constituted a significant dose. Candler claimed in 1891 that he had altered the formula of

Coca-Cola and it now contained only a tenth of amount of coca leaves. Coca-Cola also

contained nine milligrams of cocaine per glass till 1904, when they started using spent

leaves instead of fresh leaves.


19/84

GROWTH AND DEVELOPMENT OF THE ORGANIZATION

The Company's presence worldwide was growing rapidly, and year after year, Coca-Cola

found a home in more and more places: Cambodia, Montserrat, Paraguay, Macau, Turkey

and more.

In 1978, The Coca-Cola Company was selected as the only Company allowed selling

packaged cold drinks in the People's Republic of China.

The 1980s -- the era of legwarmers, headbands and the fitness craze, and a time of much

change and innovation at The Coca-Cola Company. In 1981, Roberto C. Goizueta became

chairman of The Board of Directors and CEO of The Coca-Cola Company. Goizueta, who

fled Castro's Cuba in 1961, completely overhauled the Company with a strategy he called

"intelligent risk taking."

One of Goizueta's other initiatives, in 1985, was the release of a new taste for Coca-Cola, the

first change in formulation in 99 years. In taste tests, people loved the new formula,

commonly called new Coke. In the real world, they had a deep emotional attachment to the

original, and they begged and pleaded to get it back. Critics called it the biggest marketing

blunder ever. But the Company listened, and the original formula was returned to the market

as Coca-Cola classic, and the product began to increase its lead over the competition -- a

lead that continues to this day.

The 1990s were a time of continued growth for The Coca-Cola Company. The Company's

long association with sports was strengthened during this decade, with ongoing support of the

Olympic Games, FIFA World Cup football (soccer), Rugby World Cup and the National

Basketball Association. Coca-Cola classic became the Official Soft Drink of NASCAR

racing, connecting the brand with one of the world's fastest growing and most popular

spectator sports.


20/84

New beverages joined the Company's line-up, including Powerade sports drink, Qoo

children's fruit drink and Dasani bottled water. The Company's family of brands further

expanded through acquisitions, including Limca, Maaza and Thums Up in India,

Barq's root beer in the U.S., Inca Kola in Peru, and Cadbury Schweppes' beverage

brands in more than 120 countries around the world. By 1997, the Company already sold 1

billion servings of its products every day, yet knew that opportunity for growth was still

around every corner.

In 1886, Coca-Cola brought refreshment to patrons of a small Atlanta pharmacy. Now well

into its second century, the Company's goal is to provide magic every time someone drinks

one of its more than 400 brands. Coca-Cola has fans from Boston to Budapest to Bahrain,

drinking brands such as Ambasa, Vegitabeta and Frescolita. In the remotest comers of the

globe, you can still find Coca-Cola.

From the early beginnings when just nine drinks a day were served, Coca-Cola has grown to

the worlds most ubiquitous brand, with more than 1.4 billion beverage servings sold each

day. When people choose to reach for one of The Coca-Cola Company brands, the Company

wants that choice to be exciting and satisfying, every single time.


21/84

PRESENT STATUS OF THE ORGANIZATION

Asia will be the biggest driver of Coca-Colas growth over the next 10 years, the head of the

worlds biggest beverage company said, adding that the company had lost out by not

investing enough in the region in the past. Asia is at the core, Neville Isdell, the chairman

and chief executive of the Atlanta, Georgia-based Coca-Cola Co., said. The company said its

worldwide unit-case volume sales grew 6%the highest rate since 2002. Isdell said Coca-

Cola has invested more than $1 billion (Rs4, 100 crores) over the last 12 months in Asia,

particularly in the Philippines, China, India and Indonesia.

Coca-Cola Co slightly increased its lead over rival Pepsi-Cola Co in 2002, thanks to the

successful launch of Vanilla Coke and the growth of Diet Coke, according to US soft drink

industry rankings.

Coke gained 0.6 percentage points in market share and increased its case volume by 2.1 per

cent, according to beverage digest-/Maxwell, a New York-based industry newsletter and data

service said. The company captured a larger share of the market even though its coke classic

brand fell 0.6 percentage points in market share. Atlanta-based Coca-Cola dominates 44.3 per

cent of the US soft drink market, but saw its market share drop between 1999 and 2001.

With the latest gains, its only 0.2 percentage points away from where it stood in 1998 at

44.5.


22/84

FUNCTIONAL DEPARTMENTS OF ORGANIZATION

There are 6 functional departments within Coca Cola.

Marketing

Finance

Packaging

Sales

Research and development

Administration


23/84

MARKETING STRATEGIES COCA COLA

To increase the price is the least thing, which Coke can adopt. There are so many ways

through which Coke can increase the profits. Some major ways are as follows.

Volume can be increased

Interest level of consumers

To take part in energetic festivals

How to increase the volume of consumers?

Coke can increase the volume by expanding the industry of coke. Through advertisements,

offering different interesting things to attract people towards this product.

How to increase the interest level of consumers?

Coke is increasing the interest level of consumers by offering different flavors. For example

Coke is increasing the number of flavors in Fanta, this is one of

the product of coke. Through offering different flavors Coke can increase the Level of

consumers and through this profits can be gained.

How to take part in energetic events?

Coke is already taking part in the events like world cup cricket since last many years. Coke

offers different attractive things in their events and through this Coke gained high profit and

consumption of coke increased on these occasions.


24/84

PRODUCTS OF COCA-COLA

Coca-Cola serves in India some of the most recalled brands across the world,

Which include names such as Coca-Cola, Thumps up, Sprite, Fanta, along with

The Schweppes product range.

The acquisition of Thums Up brought some of the leading national soft drinks like

Thums Up, Limca, Maaza, Citra and Gold Spot under its umbrella. To add to

This, Kinley mineral water was launched in the year 2000.

The Company ranking up "firsts" in the introduction ofCanned and PET soft

drinks, vending machines and backpack dispensers for crowds of cricket supporters.


25/84


26/84

COCA COLA

SLOGAN: -

THANDA MATLAB COCA- COLA

JO CHAHE HO JAYE COCA-COLA ENJOY

SAR UTHA KE PIYO

The world`s famous drink, the world 1s most valuable brand. he most recognizable word

across the world after OK .Coca Cola has truly remarkable heritage. 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.

In India .Coca Cola was the leading soft-drink till 1977 when government policies

necessitated its departure.Coca Cola made its return to the country in 1993 and made

significant investments to ensure that the beverage is available to more and more people,

even in the remote and inaccessible parts of the nation.
http://www.coca-colaindia.com/brands/brands_coca_c


27/84

THUMS-UP

SLOGAN: -

I WANT MY THUNDER"

"THUMPS UP TASTE THE THUNDER"

Originally introduced in 1977, Thums Up was acquired by The Coca-Cola Company in

1993.Thums Up is a leading carbonated soft drink and most trusted brand in India. Thums

Up is known for its strong, fizzy taste and its confident, mature and uniquely masculine

attitude. This brand clearly seeks to separate the men from the boys.Coca Cola has also

launched several contests for the promotion of Thums up like Hai Dum and Ninja Jeeto

Contest to attract the Youth. Coca Cola spent $ 3.5 million to beef up advertising and

distribution for Thums Up. By 2002, it had become India`s No.1 cola drink India.


28/84

MAAZA

SLOGAN: -

"Taaza Mango, Maaza Mango"

"Botal mein Aam, Maaza hain Naam".

Maaza was launched in 1976. Here was a drink that offered the same real taste of fruit juices

and was available throughout the year. In 1993, Maaza was acquired by Coca-Cola India.

Maaza currently dominates the fruit drink category. It is available in SKUs of 200ml RGB,

250ml RGB, 125ml Tetrapak and 200ml Tetrapak


29/84

SPRITE

SLOGAN: -

"SPRITE BUJHAYA ONLY PYAAS, BAKI ALL BAKWAAS"

"DHIKAWE PE MAT JAO APNI AKHAL LAGAO

In India, Sprite was launched in year 1999.Sprite is perceived as a youth icon. With a strong

appeal to the youth, Sprite has stood for a straightforward and honest attitude. Its clear crisp

refreshing taste encourages the today's youth to trust their instincts, influences them to be true

to who they are and to obey their thirst. Sprite is available around the country in 200ml,

300ml, 500ml, and 500ml + 100ml free, 1.5ltr, 2ltr, 2.25ltr and 330ml cans.

Today Sprite is perceived as a youth icon. Why? With a strong appeal to the youth,

Sprite has stood for straight forward and honest attitude. Its clear crisp refreshing taste

encourages the todays youth to trust their instincts, influences them to be true to who they

are and to obey their thirst.


30/84

FANTA

SLOGAN: -

KUCH BH1 HO SAKTA HAI

MASTI KA APNA TASTE

Internationally, Fanta - The 'orange' drink of The Coca-Cola Company

is seen as one of the favorite drinks since 1940's. Fanta entered the Indian market in the year

1993. Perceived as a fun youth brand, Fanta stands for its vibrant color, tempting taste and

tingling bubbles that not just uplifts feelings but also helps free spirit thus encouraging one to

indulge in the moment. This positive imagery is associated with happy, cheerful and special

times with friends. Over the years Fanta has occupied a strong market place and is identified

as The Fun Catalyst.

Fanta advertising over a time has the biggest association with fun and friends that have

reflected through past TV commercials like Masti ka Apna Taste,Bajao Masti.


31/84

LIMCA

SLOGAN: -

JUST TAKE IT EASY

Born in 1971, Limca has been the original thirst choice, of millions of consumers for over 3

decades. The brand has been displaying healthy volume growths year on year and Limca

continues to be the leading flavour soft drink in the country.

The success formula The sharp fizz and lemoni bite combined with the single-minded

positioning of the brand as the ultimate refresher has continuously strengthened the brand

franchise. Limca energizes, refreshes and transforms.

The brand has been displaying healthy volume growths year on year and Limca continues to

be the leading flavour soft drink in the country.
http://www.coca-colaindia.com/brands/brands_limca.html


32/84

KINLEY

SLOGAN: -

Boond Boond Mein Vishvaas.

Water, a thirst quencher that refreshes, a life giving force that washes all the toxins away. A

ritual purifier that cleanses, purifies, transforms. Water, the most basic need of life, the very

sustenance of life, a celebration of life itself. Kinley water understands the importance and

value of this life giving force. Kinley water thus promises water that is as pure as it is meant

to be. Water you can trust to be truly safe and pure. Kinley water comes with reverse-osmosis

along with the latest technology to ensure the purity.


33/84

MARKETING STRATEGY OF COCA COLA

Our local marketing strategy enables Coke to listen to all the voices around the world asking

for beverages that span the entire spectrum of tastes and occasions. What people want in a

beverage is a reflection of who they are, where they live, how they work and play, and how

they relax and recharge. Whether you're a student in the United States enjoying a refreshing

Coca-Cola, a woman in Italy taking a tea break, a child in Peru asking for a juice drink, or a

couple in Korea buying bottled water after a run together, we're there for you. We are

determined not only to make great drinks, but also to contribute to communities around the

world through our commitments to education, health, wellness, and diversity. Coke strives to

be a good neighbor, consistently shaping our business decisions to improve the quality of life

in the communities in which we do business. It's a special thing to have billions of friends

around the world, and we never forget it.


34/84

PRICE STRATEGY

Trade Promotion

Coca Cola Company gives incentives to middle men or retailers in way a that they offer them

free samples and free empty bottles, by this these retailers and middle man push their product

in the market. And thats why coca cola seen more in the market. And they have a good sale

in the market because according to the expert which product seen more in the market that

sells more.

They do agreements with a shop keepers and stores to exclusive sale in that store. These

stores are called as KEY accounts in their local language.

And coke also invest heavy budget on these stores and offers them free samples and free

bottles and some time cash incentives.

Di f ferent Price I n Dif ferent Seasons

Some times Coca Cola Company changes their product prices according to the season.

Summer is supposed to be a good season for beverage industry in India.

So in winter they reduce their prices to maintain their sales and profit. But normally they

reduce the prices of their pet bottles or 1 litter glass bottle.


35/84

PROMOTION STRATEGIES

Getting shelves

They gets or purchase shelves in big departmental stores and display their products in that

shelves in that style which show their product more clear and more attractive for the

consumers.

Eye Catching Position

Salesman of the coca cola company positions their freezers and their products in eye-catching

positions. Normally they keep their freezers near the entrance of the stores.

Sale Promotion

Company also do sponsorships with different college and schools cafes and sponsors their

sports events and other extra curriculum activities for getting market share.

UTC Scheme

UTC mean under the crown scheme, coca cola often do this type of scheme and they offer

very handy prizes in it. Like once they offer bicycles, caps, tv sets, cash prizes etc. This

scheme is very much popular among children.


36/84

DISTRIBUTION CHANNELS STRATEGY

Coca Cola Company makes two types of selling

Direct selling

Indirect selling

Di rect Selli ng

In direct selling they supply their products in shops by using their own transports. They have

almost 450 vehicles to supply their bottles. In this type of selling company have more profit

margin.

I ndirect Sell ing

They have their whole sellers and agencies to cover all area. Because it is very difficult for

them to cover all area of Pakistan by their own so they have so many whole sellers and

agencies to assure their customers for availability of coca cola products.

FACILITATING THE PRODUCT BY INFRASTRUCTURE

For providing their product in good manner company has provided infrastructure these

includes:

Visi cooler

Freezers

Display racks

Free empty bottles and shells for bottles


37/84

ADVERTISEMENT STRATEGY

Coca Cola Company use different mediums

Print media

Pos material

TVs commercial

Billboards and holdings

Print M edia

They often use print media for advertisement. They have a separate department for print

media.

POS Mater ial

Pos material mean point of sale material this includes: posters and stickers display in the

stores and in different areas.

TV Commercials

As everybody know that TV is a most common entertaining medium so TV commercials is

one of the most attractive way of doing advertisement. So Coca Cola Company does regular

TV commercials on different channels.

Bi llboards and Holdings

Coca cola is very much conscious about their billboards and holdings. They have so many

sites in different locations for their billboards.


38/84

PROFILE OF PEPSI

PepsiCo, Inc. is one of the world's top consumer product companies with many of the world's

most important and valuable trademarks. Its Pepsi-Cola Company division is the second

largest soft drink business in the world, with a 21 percent share of the carbonated soft drink

market worldwide and 29 percent in the United States. Three of its brands--Pepsi-Cola,

Mountain Dew, and Diet Pepsi&mdashe among the top ten soft drinks in the U.S. market.

The Frito-Lay Company division is by far the world leader in salty snacks, holding a 40

percent market share and an even more staggering 56 percent share of the U.S. market. In the

United States, Frito-Lay is nine times the size of its nearest competitor and sells nine of the

top ten snack chip brands in the supermarket channel, including Lay's, Doritos, Tostitos,

Ruffles, Fritos, and Chee-tos. Frito-Lay generates more than 60 percent of PepsiCo's net sales

and more than two-thirds of the parent company's operating profits. The company's third

division, Tropicana Products, Inc., is the world leader in juice sales and holds a dominant 41

percent of the U.S. chilled orange juice market. On a worldwide basis, PepsiCo's product

portfolio includes 16 brands that generate more than $500 million in sales each year, ten of

which generate more than $1 billion annually. Overall, PepsiCo garners about 35 percent of

its retail sales outside the United States, with Pepsi-Cola brands marketed in about 160

countries, Frito-Lay in more than 40, and Tropicana in approximately 50. As 2001 began,

PepsiCo was on the verge of adding to its food and drink empire the brands of the Quaker

Oats Company, which include Gatorade sports drink, Quaker oatmeal, and Cap'n Crunch,

Life, and other ready-to-eat cereals.


39/84

When Caleb D. Bradham concocted a new cola drink in the 1890s, his friends' enthusiastic

response convinced him that he had created a commercially viable product. For 20 years,

'Doc' Bradham prospered from his Pepsi-Cola sales. Eventually, he was faced with a

dilemma; the crucial decision he made turned out to be the wrong one and he was forced to

sell. But his successors fared no better and it was not until the end of the 1930s that Pepsi-

Cola again became profitable. Seventy years later, PepsiCo, Inc. was a mammoth

multinational supplier of soft drinks, juices, and snack food. PepsiCo's advance to that level

was almost entirely the result of its management style and the phenomenal success of its

television advertising.

Doc Bradham, like countless other entrepreneurs across the United States, was trying to

create a cola drink similar in taste to Coca-Cola, which by 1895 was selling well in every

state of the union. On August 28, 1898, at his pharmacy in New Bern, North Carolina,

Bradham gave the name Pepsi-Cola to his most popular flavored soda. Formerly known as

Brad's Drink, the new cola beverage was a syrup of sugar, vanilla, oils, cola nuts, and other

flavorings diluted in carbonated water. The enterprising pharmacist followed Coca-Cola's

method of selling the concentrate to soda fountains; he mixed the syrup in his drugstore, then

shipped it in barrels to the contracted fountain operators who added the soda water. He also

bottled and sold the drink himself. In 1902 Doc Bradham closed his drugstore to devote his

attention to the thriving new business. The next year, he patented the Pepsi-Cola trademark,

ran his first advertisement in a local paper, and moved the bottling and syrup-making

operations to a custom-built factory. Almost 20,000 gallons of Pepsi-Cola syrup were

produced in 1904.


40/84

Pepsi has been bringing fun and refreshment to consumers for over 100 years. From its

humble beginnings over a century ago, Pepsi-Cola has grown to become one of the

bestknown,most-loved products throughout the world. Today, the company continues to

innovate, creating new products, new flavors and new packages in varying shapes and sizes

to meet the growing demand for convenience and healthier choices.


41/84

BEVERAGES OF PEPSI

PEPSI

DIET PEPSI

MIRINDA

SEVEN UP

MOUNTAIN DEW

SLICE


42/84

PEPSI

SLOGAN:

"Oh YES ABHI

Pepsi is the most saleable product of PepsiCo. It is popular in the youngergeneration all around the world


43/84

DIET PEPSI

SLOGAN:

YOU GOT THE RIGHT ONE BABY UH HUH

With its light, crisp taste, Diet Pepsi gives you all the refreshment you need -with zero sugar, zero calories and zero carbs, Light, Crisp, refreshing.


44/84

MIRINDA

SLOGAN:

PAGALPANTI BHI ZAROORI HAY

:

Mirinda was originally produced in Spain. Mirinda is a brand of soft drink

available in fruit varieties including orange, grapefruit, and apple, strawberry, pineapple,

banana, and passionfruit and grape flavors. The orange flavor of Mirinda represents the

majority of Mirinda sales


45/84

SEVEN UP

SLOGAN:

BE YOURSELF BE REFRESHING

7 Up is a brand of a lemon-lime flavored non-caffeinated soft drink. The rights to the

brand are held by Dr Pepper Snapple Group in the United States, and PepsiCo (or its

licensees) in the rest of the world


46/84

MOUNTAIN DEW

Slogan:

DARR KAY AAGAY JEET HAY

Mountain Dew (also known as Mtn Dew as of late 2008) is a soft drink

distributed and manufactured by PepsiCo. Mountain Dew (and its energy drink counterpart

known as AMP) often incurs the disapproval of health experts due to its relatively high

caffeine content for a soft drink or energy drink


47/84

SLICE

SLOGAN:

AAMSUTRA

Slice is a line of fruit-flavored soft drinks manufactured by PepsiCo and introduced in 1984.

Varieties of Slice have included Apple, Fruit Punch, Grape, Passion fruit, Peach, Mandarin

Orange, Pineapple, Strawberry, Cherry Cola, "Red", Cherry-Lime, and Dr Slice.


48/84

MARKETING STRATEGIES OF PEPSI

A closer look at the brand identities of each of the brands helps assess how successful theiradvertising campaigns have been in creating a brand image in tune with it, while being

sensitive to the value system of the target audience.

PepsiCos CampaignThe analysis of Pepsi, 7 UP and Mountain Dew from the portfolio of PepsiCo puts forthsome interesting aspects about the evolution of these brands. Pepsi was one of the firstproducts to Indian markets after the economic reforms of 1991.

Pepsi

Pepsi began with the Yehi hai Right Choice Baby campaign, which has been one of the mostmemorable campaigns of the brand, featuring celebrity endorsers such as Shah Rukh Khan

among others. The focus, as is clearly evident, is on the product with the youth as its targetsegment. Yeh Dil Mange More and Yeh Pyaas Hai Badi were some of the later campaigns.

Yeh Dil Mange More campaign was again a great success, having balanced the emotional aswell as the functional appeal of the product. Featuring Sachin Tendulkar and many otherleading stars at that point of time, this was also one of the longest campaigns carried out byPepsi. The company however failed to maintain the trend and leverage it. Instead of movingon to a complete emotional appeal platform, the company decided on a product basedpromotion campaign. Though there is still some amount of emotional appeal to its campaigns,the principal focus is on the product - it being a preferred thirst quencher.

7 UPIn its early days, 7 UP inherited the global Fido-Dido campaign for promotion in India as

well. However, with changing times and a contextual difference in India, a much more

focused campaign was required. This led to theKeep It Coolcampaign, which was targetedprimarily at the youth and the teenager segment. Hence the appeal was at a more subtle,emotional level, which was meant to convey a potential lifestyle statement. The recent

campaign ofBheja Fryessentially leverages on the same emotional appeal where theKeep It

Coolcampaign has been somewhat tweaked to have a local appeal.

Mountain Dew

Mountain Dew is the latest entrant in the product portfolio. This product too has the appealof being the drink of a daredevil or the No Fear personality. The campaigns launched

includeDo the Dew andDar Ke Aagey Jeet Hai. The initial campaign was unclear in termsof its appeal and the target segment, as a result of which the brand suffered some jolts in thebeginning. However, the latest campaign captures the No Fear or the Macho Man image. Inthis sense, the brand directly competes with Thums Up from the Coca Cola Stable


49/84

ADVERTISEMENT STRATEGY

Coca Cola Company use different mediums

Print media

Pos material

TVs commercial

Billboards and holdings

Print M edia

They often use print media for advertisement. They have a separate department for print

media.

POS Mater ial

Pos material mean point of sale material this includes: posters and stickers display in the

stores and in different areas.

TV Commercials

As everybody know that TV is a most common entertaining medium so TV commercials is

one of the most attractive way of doing advertisement. So Coca Cola Company does regular

TV commercials on different channels.

Bi llboards and Holdings

Coca cola is very much conscious about their billboards and holdings. They have so many

sites in different locations for their billboards.


50/84

OBJECTIVES OF STUDY

.

* TO KNOW WHICH OF THE TWO COMPANIES HAVE BETTER ADVERTISING

CAMPAIGN

* TO KNOW WHICH FORM OF ADVERTISING AND SALES PROMOTION

STRATEGY IS MORE EFFFECTIVE.

* TO KNOW WHICH COMPANY HAVE MORE MARKET SHARE

* TO KNOW THE BASIS ON WHICH CONSUMER PREFER TO BUY A

PARTICULAR SOFT DRINK.

* TO KNOW THE IMPACT OF MARKETING STRATEGIES OF THE COMPANIES

ON THE BUYING DECISION.


51/84

SCOPE OF STUDY

The scope of study is confined to the consumer and retailer of pathankot

region.A lot of research has been done on these subject matter.the research is

both descriptive and explaratory in nature and mainly focus on marketing

strategy of coca cola vs pepsi and their strategy.the study is based on both

primary and secondary sources of data.the implication of study is limited to

perception of consumer and retailer due to financial and time constraint.study

will also come up with various finding which will help company and retailers to

improve on their market strategy.


52/84

NEED OF STUDY

The present study is significant from the perspective of consumer retailer and

company.the study will give an indepth analysis of the market structure of

companies working in softdrink industry and there demand in pathankot region.

The study of various marketing strategis of two companies gives an insight in

to the company about which leads the company.The perception of consumer and

retailer toward these strategies influence their preference and buying

decision.the study specifically more useful for retailers & ultimately companies

which have to sell the products in the markets.they will understand what attract

the most of consumer & retailers and can modify their marketing strategies

according to that.


53/84

RESEARCH DESIGN AND METHODOLOGY

The project will involve a study the importance of strategic management and sales promotion

strategies schemes in the soft drinks industry.

. The study will include following parameters.

Top of the mind recall.

Brand awareness about an advertisement.

The use of celebrity in a particular campaign and their impact.

The mode of the data collection would include both primary and secondary.

The impact of sale promotion schemes would measure on:

Their visibility.

Recall value of a post schemes.

Acceptability of the current scheme by the customers and sales force.

For this purpose both primary and secondary data would be collected.

For clarification certain annexure of ads and sales promotion schemes are added in the end.

The project work started with the collection of secondary data from various sources such as

newspaper, magazines, journals and web sites. Along side two questionnaires were also

prepared one aimed at consumers and the other aimed at retailers together primary data,

regarding the influence and effect of Advertising and sales promotion schemes on the sales of

soft drinks (Carbonated Soft drinks).


54/84

This research methodology include:

Problem identification

Research design

Sampling plan

Method of data collection

Sources of data collection

1. Problem Identi fi cation:

Marketer should be aware of the perception of customer about his product

so that he can gain maximum out of it. He should be aware of who are decision

maker as well as ultimate buyer of product.

2 Research Design:

The method adopted for research is Experience Survey i.e. survey of

people who have practical experience of soft drinks in Sagar, in such a research

design the decision regarding what, where, whom, how much, by what means

are concerned. It is the blue print for the research undertaken.

Measurement and Scali ng Technique for Research:

In this research the rating scale technique is used. Rating scale involves qualitative

description of a limited no of aspects of thing or of traits of a person. In rating scale we judge

properties of objects without reference with other similar object.

The ranking can be done by graphic rating scale as:


55/84

Like very much

Like some what

Natural

Dislike some what

Dislike very much

3. Sampli ng Plan:

It includes sample unit, sample size, sample procedure.

Sample Un it :Sample unit is target population of PATHANKOT

Sample size: Research is done on 200 respondents of PATHANKOT

4 Method of data col lection:

Observation method

Questionnaire method

Data collection through journal, magazines

Data collection through websites of various Soft Drinks related companies.

5. Sources of data col lection:

Primary sources: Sample survey of target population

Secondary sources: Company pamphlets, different journal such as A+M, Business

magazine as business world, business India, industry manual and web sites.


56/84

REVIEW OF LITERATURE

1 .According to RICE(1993) perception is the initiator of behavior.It can alsobe seen as a process of information extraction.perception is the process bywhich an individual selects organizes and interprets information inputs to createa meaningful picture(kotler,2000)different people tends to perceive quitedifferently even when they are exposed to the same reality.a set of factors e.g.individual responses,determine an individuals perception process and lead toindividual differences.the most important is that people perception are oftenmore important than the reality in marketing(kotler,2000)

2. According to thorelli et al(1975) the prospective buyer posess a certaintstock of cognitive content,including his own concept or self concept,attitude andopinion both in general and on specific product and stored information and pastexperience. This stock has been formed as a result of his interaction with hisenvironment over time,and it will help determine the environment in which he

places himself in the futureas well as influence his perception of that

environment.this stage consist of the physical and cognitive activities involvedin comparing alternatives on the basis of information gathered from externalsearch above.

3. The study of consumer behavior provide a sound basis for identifying andunderstanding the factor that affect consumer buying behavior.schiffman and

kanuk(2002) state that the behavior which consumer display in searching,purchasing and evaluating products/services is those that expect to fulfill theirneeds.

4. According to kotler (2000) the consumer arrive at attitude toward variousbrand through an attribute evaluation procedure and most buyers consider

several attributes in their purchase decision, these attributes used by consumerfor evaluation are also called choice criteria.


57/84

5.jobber(2001) has made a good summary of these choice criteria.Infact,consumer attempt to optimize the trade off between product benefit,productcosts,the desired personal utilities and other variables


58/84

ANALYSIS OF DATA

Which brand of soft drink you prefer?

When asked about particular brands consumers responded the two colas namely Pepsi and

coke as their favorites. Out of which Coca Cola was leading with 61% while Pepsi came

second at 39%, It was also observed that cola segment was preferred by more than 70% of the

total consumers interviewed.

39

61

Sales

PepsiCo

Coca Cola


59/84

Why do you prefer it?

When asked to the consumers responded availability of a particular brand of soft drink of the

most important in their purchase decision. Through advertising and sales promotion schemes

were also very important while making their final purchase decision as it is an impulse

purchase, consumers often related their purchase with the recall of an ad which their viewed

on television. Apart from easy availability and promotional schemes price was another major

driving factor in the purchase of a soft drink for consumers (Pet bottles prices vary).

Advertising

& Schemes

29%

Preference

19%

Easy

Availability

31%

Price

21%


60/84

When you talk of soft dr ink advertising which all brands come to your mind

(please specif y in order of recal l)?

When the above question was asked to the consumers they could easily recall Pepsi and

Coke ads almost equally. Though Pepsi had a very minor edge. This question also shows

Pepsis aggressive nature in advertising, which is its trademark the world over. Pepsi has

always been known as an aggressive advertiser and this is also true in Indian market.

Thums up was a distant third because of its continuous attacks on Pepsi.

Others

6%Limca

9%

Thums up

16%

Coke

29%

Pepsi

35%

Maaza

5%


61/84

Do you think the advertising done by the companies affects the sales of their

respective soft dr inks?

As its is clear from the above graph that advertising as a major impact on the sales of soft

drinks most of the consumers almost 71% thought advertising has direct effect on the sales of

the soft drinks. When consumers were asked about the effect of ads on sales most of them

responded in favor. They said that ads were the most important factor in driving the sales of

any brand. Especially with the younger generation, it often drives them towards a particular

brand of soft drink due to its advertisement.

Yes

71%

No

29%


62/84

Which from of advertising and sales promotion strategies do you think is most

effective for soft dr ink industry?

Consumers think that television advertising has a major impact on the sales of soft drinks. As

television reaches maximum urban homes, which are the major market of the soft drinks, they

have a direct impact on the consumers behavior. Apart from that newspaper advertising is

also important. Apart from these advertising media, sales promotion schemes from the next

important strategy.

29

8

41

13

9

0

5

10

15

20

25

30

3540

45

Sales

PromotionSchemes

Television

Advertising

Outdoor

Advertising


63/84

According to you which companys advertising are more creative and

appealing?

HTA, the advertising agency for Pepsi, has come up with many innovative ads in the past,

creating a good impression in the mind of consumers. Most of the consumers interviewed

responded that they like Pepsi ads more than that of Coke. Recently Coke has also come up

with few ads, which are specifically by the consumers.

57

43

0

10

20

30

40

50

60

PepsiCo Coca Cola


64/84

ANALYSIS OF RETAILERS

Type of business

To conduct the research a number of Retail Outlets were visited these retail outlet included

provisions stores, eateries, sweets shops, tea stalls, Dhabas etc. Out of these it was found that

provision stores of the local market where the major sellers of the soft drinks and consumers

usually preferred to buy soft drinks from their local grocery store.

Sweet

Shops

27%

Provisons

Stores

45%

Eatery

22%

Others

6%


65/84

Which segment of soft dri nk consumer general ly asked for? (Rank them on

scale 1, 2, 3)1 is max. 3 i s min.

As it is an apparent from the above graph when asked about which segment the consumers

generally asked for the retailers respondent that Cola by itself was the largest selling soft

drink amounting to 61% of total soft drink sales. Orange came a distant second at 17%

followed by cloudy lemon, which constituted another 14%.

51

27

14

4 4

0

10

20

30

40

50

60

Cola Orange Cloudy

Lemon

Clear

Lemon

Others


66/84

Why do think that a consumer ask for a particular brand of soft drink?

The consumer preferences are very fragile and not firm. Consumers preference usually

changes with the various schemes and the advertising. Which has major impact on their

purchase decision. Price is another critical factor on which the consumer purchase

decision is based. It is often found that the consumers change their preference in

accordance with various price discounts offered to them. Availability is another major

aspect, which decides the actual purchase. A consumer may change his or her preference

based in the fact that which brand is available chilled at that moment.

Price

21%

Availbility

23%Brand

Prefrence

17%

Advertis ing

&

Promotion

39%


67/84

Major sale of soft dri nk is due to?

Though advertising and sales promotion act as a major tool to attract customers for the

purchase of the particular soft drink, but it is actually the availability that is by far the

most important factors, which drive the sale. Apart from availability the price factor is

again cited as an important factor in the actual sale of the soft drinks. Apart from these

various schemes and sales promotion activities under taken by the company also acts as

sources of sale. The brand preference and loyalty is by far the least important factor

driving the sale.

38

25

16

21

0

5

10

15

20

25

30

35

40

Availability Price Brand

Name

Scheme


68/84

What are the attr ibutes that inf luence you to decide which brand of soft dr ink

to keep? (Rank them on scale of 1-4).

The attributes that influence a retailer to keep a particular brand of soft drink are pro

motional schemes brand name consumer pill and company support. Out of these factors

promotional scheme again is the major factor that influences any retailer to keep the stock

of particular brands. Apart from this consumer pull and brand name acts are the major

influencers for the retailers to keep stork of a particular soft drinks. One more factor

which affects the retailers to keep stock of particular soft drinks is the company support

which is provided in from of visi coolers, banners, sign boards etc. through the kind of

company support provided by the majors is almost the same.

12

18

43

27

05

10

15

20

25

30

35

4045

50

Company

Support

Consumer

Pull

Promotional

Schemes

Brand

Name


69/84

Does the promotional scheme of the company have any effect on the sales of

soft drinks brands?

As sighted in the above analysis, sale of any soft drink is very much affected by the

promotional schemes provided by the company to the retailers. These schemes act as the push

towards the sales for any soft drink brands.

Yes

71%

No

29%


70/84

Limitations of Study:

Resources for collection of data are less.

Time period for data collection is short

Difficult to get response from customer.

Experience in field of research is difficult job.


71/84

FINDINGS OF STUDY

CONSUMER PERCEPTIONS

Soft drinks come under the category of products purchased on impulse. Through the

markets is marred by brand loyalty the purchase decision itself is a low involvement

decision. This attitude of impulse buying is slowly changing to occasion-led-buying

and also to some extent to consumption through home refrigerator particularly in

urban areas.

The market is slowly moving from non-alcoholic carbonated drinks to fruit based

drinks and also to plain bottled water due to lower price and ready availability.

Consumers purchase soft drinks primarily to quench thirst. Therefore people traveling

and not having access to hygienic water reach out for soft drink. This accounts for a

large part of the sales.

Brand awareness plays a crucial role in purchase decisions.

Consumers prefer convenient and economy products.

Availability in the chilled from affects the purchase decision. This has made both

companies to push its sales and to increase its retail distribution by offering Visi

Coolers to retailers.

While there is no restriction on consumption of soft drinks by any age group, the main

consumers of this market are people in the age group of 30 and below.

Product differentiation is very low, as all the products taste the same. But brand

loyalty is high in the case of kids and people in the age group of 20-30 years.

Consumers are sensitive to the outlay where the purchase of beverages is concerned.

Hence the market is price sensitive.


72/84

Due to the high cost of soft drinks, a lot of times consumers prefer beverages like tea,

coffee or other drinks like sharbat and squashes.

Per capita consumption in India is among lowest in the world at 5 bottles per annum

compared to 80 bottles in Thailand and 800 bottles in USA.

Delhi market has highest per capita consumption in the country with 50 bottles per

annum compared to 5 bottles for the country.


73/84

RETAILERS PERCEPTIONS

Retailers stated that the consumers are loyal to the particular segment of the soft

drink i.e. cola, orange or lemon. But as far the loyalty for the brands in each

segment is concerned, it is not very significant.

43% of the retailers surveyed told that in soft drinks advertising is the key

component in driving sales. While 32% stated promotional schemes and 20%

brand loyalty as the reason.

As consumers are not very brand loyal where the purchase of soft drinks is

concerned, the retailer push becomes a critical issue. They usually sell the product

in which they get the maximum benefit. For this, the companies try to offer them

higher margins


74/84

RECOMMENDATION

Although it is very early to suggest any thing to such a internationally renounced

company like Coca-Cola having in the mature stat e of marketing yet for the local market,

client distributors & retailers, based on the interactions & feed backs from various outlets,

segments of customers I would like to suggest as under:

Company should promote good and heart felt Slogans and Jingles.

Company should provide others small advertising items in the form of garlands,

hangers recto the shopkeepers as there are cheap and Q good source of advertising.

Company should sponsor important event like World cup, Asian & other tournament,

any event related to film awards and programmers of local importance.

Company, If possible should give schemes to the customers through newspapers

having provision for discounts in purchasing its products.

Company should organizing campaigns & distributes caps, Key rings, glasses, serving

tray, pussels on which company packages are branded.

Chilling equipments should provide on a cost basis.

Chilling equipments (like family freeze, vizzi or Electric bottle cooler) should be

provided to the outlets


75/84

If there is any default found in the chilling equipment provided by the company

should be repaired quickly when so required.

Company should ensure good supply of stock.

Company should go for more monopoly counters.

Company should give discount with every crate as is being done by Pepsi.

There should be surprise check by the company to endure whether benefits of

schemes provided by the company reach outlets or not and take corrective measures

in case of default.

Company should arrange seminars and meetings with dealers on an ongoing basis on

monthly interval.

Shopkeeper feedback should be taken in regular manner.

A special shopkeepers care cell should be formed to listen the shopkeepers

grievance on the lines of customer care cell.

No. of hoardings should be increased.


76/84

Flexibility in the allot of monopoly items should be encouraged.

. Some free gifts should also be given on established Brands to stimulance the retailer.

Company should elaborate public announcement on important days like Health day,

Anti drug day world aids day etc.

Company should tap colleges and school canteens. They should be given extra

discounts as these outlets give potential long run customers to the company.

Company should provide Tables, Chairs wall clocks, stands, openers to the retailers

as f or them type of free gifts are significant and they promote those company's

products who provide such items to them


77/84

CONCLUSION AND SUMMARY

To sum up the whole study I can say that advertising does have great impact on

consumer buying behavior but advertising alone is not the basis of buying a

particular soft drink .there are other factors also like availability,price whether

the soft drink is chilled or not. Out of the two companies pepsi have better

advertising strategies but coca cola have better market share than pepsi.I also

came to know that the most effective form of advertising is television

adds.Provisional stores are the major seller of cold drinks and according to

retailers to advertising helps a lot in selling of a product and promotional

schemes of companies should be given because they also help in promoting

sale.


78/84

SWOT ANALYSIS OF COCA COLA

STRENGTH Weaknesses

1. The best global brand in the world in

terms of value ($77,839 billion)

2. Worlds largest market share in beverage

3. Strong marketing and advertising

4. Most extensive beverage distribution

channel

5. Customer loyalty

6. Bargaining power over suppliers

7. Corporate social responsibility

1. Significant focus on carbonated drinks

2. Undiversified product portfolio

3. High debt level due to acquisitions

4. Negative publicity

5. Brand failures or many brands with

insignificant amount of revenues

Opportunities Threats

1. Bottled water consumption growth

2. Increasing demand for healthy food and

beverage

3. Growing beverages consumption in

emerging markets (especially BRIC)

4. Growth through acquisitions

1. Changes in consumer preferences

2. Water scarcity

3. Strong dollar

4. Legal requirements to disclose negative

information on product labels

5. Decreasing gross profit and net profit

margins

6. Competition from PepsiCo

7. Saturated carbonated drinks market


79/84

SWOT ANALYSIS OF PEPSI

Strengths Weaknesses

1. Product diversity2. Extensive distribution channel

3. Corporate Social Responsibility (CSR)

projects

4. Competency in mergers and acquisitions

5. 22 brands earning more than $1 billion a

year

6. Successful marketing and advertising

campaigns

7. Complementary product sales8. Proactive and progressive

1. Overdependence on Wal-Mart2. Low pricing

3. Questionable practices (using tap water

but labeling it as mountain spring water)

4. Much weaker brand awareness and

market share in the world beverage

market compared to Coca-Cola

5. Too low net profit margin

Opportunities Threats

1. Growing beverages and snacks

consumption in emerging markets

(especially BRIC)

2. Increasing demand for healthy food andbeverages

3. Further expansion through acquisitions

4. Bottled water consumption growth5. Savory snacks consumption growth

1. Changes in consumer tastes

2. Water scarcity3. Decreasing gross profit margin

4. Legal requirements to disclose negativeinformation on product labels

5. Strong dollar6. Increased competition from Snyders


80/84

BIBLIOGRAPHY

REFERENCES

BOOKS:-* Philip kotler,principles of marketing,sultan chand and company limited,new delhi,2002.

* D. Aaker,v.kumarand g.day marketing research,john wiley & sons(ASIA) pvt

limited,seventh edition,2003.

* Pillai R.S.N and Bhagavathy,modern marketing sultan chand and sons,second edition

* Balu. V,marketing research of consumer behavior,sri venkadeswan publication,second

edition,2001.

* Ramaswamy and namakumari,marketing management,macmillan publishers india

Ltd,fourth edition.

Websiteshttp://www.wikihow.com/Tell-the-Difference-Between-Coke-and-Pepsi

http://www.coca-colaindia.com/products/our_products.html

http://www.coca-colaindia.com/ourcompany/company.html

http://www.pepsico.com/Company.html

http://www.pepsico.com/Brands.html
http://www.wikihow.com/Tell-the-Difference-Between-Coke-and-Pepsihttp://www.wikihow.com/Tell-the-Difference-Between-Coke-and-Pepsihttp://www.coca-colaindia.com/products/our_products.htmlhttp://www.coca-colaindia.com/ourcompany/company.htmlhttp://www.pepsico.com/Company.htmlhttp://www.pepsico.com/Company.htmlhttp://www.coca-colaindia.com/ourcompany/company.htmlhttp://www.coca-colaindia.com/products/our_products.htmlhttp://www.wikihow.com/Tell-the-Difference-Between-Coke-and-Pepsi


81/84

ANNEXURES

QUESTIONNAIRE FOR CONSUMERS

Name: Sex:

Age Location:

1) Which Company brands of soft drink do you prefer?

a) Coca Cola b) Pepsi

2) Why do you prefer it?

a) Adv. & promotion schemes b) Preference

c) Price d) Easy Availability

3) Which form of advertising and sales promotion strategies do

you think is most effective for soft drink industry?

a) Television Advertising b) Newspaper Advertising

c) Outdoor Advertising d) Sales promotion schemes

4) According to you which companys advertising are more

Creative and appealing?

a) PepsiCo b) Coca-Cola

5) Do think the advertising done by the companies affects the

sales of their respective soft drinks?

a) Yes b) No


82/84

6) When you talk of soft drink advertising which all brands come to

your mind? (Please specify in order of recall)

------------------------------------------------------------------------------------

----------------------------------------------------------------------------


83/84

QUESTIONNAIRE FOR RETAILERS

1) Type of business is:

a) Provision store b) Hotel

c) Sweet Shop d) Dabha

e) Tea Stall f) Any Other.

2) Which segment of soft drink consumer generally asked for?

a) Cola b) Orange

c) Clear lemon e) Cloudy Lemon

e) Others

3) Why do think that a consumer ask for a particular brand of soft drink?

a) Adv. & Promotional Activities b) Brand Preference

c) Easy Availability d) Price

4) Major sale of soft drink is due to?

a) Availability b) Price

c) Brand Name d) Promotion Schemes


84/84

5) What are the attributes that influence you to decide which brand of soft drink to keep?

(Rank them on scale of 1-4).

a) Company Support b) Consumer Pull

c) Brand Name d) Promotion Schemes

6) Does the promotional scheme of the company have any effect on the sales of soft

drinks brands?

a) Yes b) No

Done 97 Coca Cola

Documents