PROJECT REPORT ON “BRAND POSITIONING STRATEGIES” OF “PEPSI” IN COMPARISION WITH “COCACOLA ” Submitted To M.D. University Rohtak, For the Partial Fulfillment Of The Award of Degree Of MASTER OF BUSINESS ADMINISTRATION BATCH: 2008-2010 Under the guidance of: Submitted by: MR. Narender Tanwar DEEPAK SINGH Lecturer. In MBA deptt. MBA 4 th Sem. Roll no.08/mba07 Bhawani Shankar Anangpuria 1
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PROJECT REPORT
ON
“BRAND POSITIONING STRATEGIES”
OF
“PEPSI”
IN COMPARISION WITH
“COCACOLA”
Submitted To M.D. University Rohtak, For the Partial Fulfillment Of The Award
of Degree Of
MASTER OF BUSINESS ADMINISTRATION
BATCH: 2008-2010
Under the guidance of: Submitted by:
MR. Narender Tanwar DEEPAK SINGH
Lecturer. In MBA deptt. MBA 4th Sem.Roll no.08/mba07
Bhawani Shankar Anangpuria
INSTITUTE OF TECHNOLOGY & MANAGEMENT (Approved by AICTE, Govt. Of INDIA & Affiliated to M.D.U., Rohtak)
Alampur, Faridabad -121004
1
ACKNOWLEDGEMENT
I was delighted to avail this opportunity to thank all those who have contributed in our efforts in
the development of the project and making it a success, which would have been a difficult, task
otherwise.
I would like to express my gratitude to my guide Mr Narender tanwer, who guided me through
out the project work and special thanks for the care and concern shown by him.
I am highly thankful to Head of department of M.B.A. Faculty, which provide a chance to work
with these brands.
In last but not a least, I am thankful to shopkeeper,users which provide a time for questionnaires.
Date-
Place- Deepak singh
2
PREFACE
The curriculum of MBA is so designed that it besides providing theoretical knowledge gives
practical experience to the participants, with an opportunity to deal with real life situation
through field visitor or as research project dissertation are enriched and well equipped to face the
future challenge and counting excise which are enriched and inseparable and unavoidable in
business.
The objective of research project is to impart the student with the practical experience and an
exposure of the corporate world. The student has to complete research project under the
professor of his institute and do a project which he thinks would add to knowledge and he will
learn about how We work on market research of any particular topics.
I fortunately got an opportunity to do my research project on “COMPARATIVE ANALYSIS OF
BRAND POSITIONING STRATEGIES OF PEPSI AND COCA COLA”.
Working on this project was a rewarding time for me, where I came to know about the various
programmatic aspects of managerial work and management.
3
Declaration
I Deepak Singh roll no 08/MBA07. M.B.A.4th Semester of institute of ‘Bhawani Shankar
Anangpuria Institute of Technology & Management’ Faridabad hereby declare that the project
entitled “Comparative Analysis Of Brand Positioning Strategies of Pepsi And Coca Cola” Is
an original work and the same has not been submitted to any other institute for the award of any
other degree. The interim report was presented to the supervisor on Mr. Narender Tanwar asst.
professor’s feasible suggestions have been duly incorporated in consultation with the supervisor.
Deepak Singh
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TABLE OF CONTENT
CHAPTER – 1
Objectives
CHAPTER – 2
Company Profile History of Pepsico
Beverages industry in India Entry of Pepsico in India
History of Coco-Cola
SWOT Analysis
CHAPTER – 3
Introduction of the Topic
CHAPTER – 4
Research Methodology
5
CHAPTER – 5
Data Analysis& Findings
Flavours of Pepsico & Coca-Cola
CHAPTER – 6
Findings
CHAPTER – 7
Limitation & Conclusion
CHAPTER – 8
Recommendations & suggestions CHAPTER – 9
Bibliography
CHAPTER - 10 Annexuer:
Questionnaire
6
CHAPTER - 1
7
OBJECTIVES OF
THE
STUDY
8
OBJECTIVE OF THE STUDY
To know the main branding strategies followed by the company to create a better mbrand
image.
To Study customer’s attitude towards Pepsi & Coca-Cola.
To determine the importance of brand positioning in present marketing scenario.
To determine the factor influencing the choice of customer regarding stated cold drinks..
To know how brand positioning is done by Pepsi and Coca-Cola.
It is widely accepted that theory broadens ones thinking and help in idea generation. But
practical approach tends to test the feasibility of these ideas and how far theortical knowledge
can be applied in a situation successfully.
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CHAPTER - 2
10
COMPANY
PROFILE
11
HISTORY OF
PEPSICO
12
HISTORY OF PEPSICO
The wall street journal names indra nooyi one of 50 women to watch (in line to lead
Margo posey, president of the DFW MBDC presented bob Gonzalez with president’s award fro-
meritorious service to the council over the years. Pepsico is mentioned among 26 companies that
earned Governance metrics International’s (GMI) highest governance rating. National minority
Supplier Development Council (NMSDC) names pepsico one of the “ Corporations of the year”.
Minority Business News names pepsico Chairman and CEO Steve Reinemund “ Executive of
the year”. PEPSI Musica Website Wins “ Best Interactive Marketing Digital Community”
Award from the Latino Marketing Awards. The Maxican Center of Philanthrophy ( CEMEFI)
honored Sabritas- pepsiCo’s Mexican salty-‘snack business—with the Best Practice in
Corporate Social Responsibility Award for 2004 in the community affairs category.
Latin Trade Reader Survey Names PepsiCo # 7 in the list of latin America’s Most-Respected
companies.
PepsiCo is chosen for the 2005 list of the NAFE Top 30 Companies for Executive women.
1). Top management decides strategic planning and its implementation regarding the availability,
affordability of its brands.
2). Top management is very effective it take decisions on every aspects of business like social
responsibility , sales promotion , marketing , finance distribution etc.
3) company has goodwill among the public.
4) Effective distribution channels.
5) Effective advertisement Systems.
6) Company has automated plant for production.
39
WEAKNESSES:
1) The organization structure is not properly designed.
2) Demand of specific product are not fulfilled.
3) Mismanagement is distribution of advertising materials.
4) Quality of some product is not good like mirinda & lemon.
5) Sales representatives of company are not performing according there efficiency so sales
effected.
OPPORTUNITIES:
1) VBL must be fulfilled the demand of market with it Pepsi can increase its market share.
2) Company can capture more market share if it covers those areas where competitor has not
reach.
3) Company should consider on non user of cold drink.
4) Company can capture more market share when introduce 200 ml for children at
reasonable price.
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THREATS:
1). Company should maintain present market share.
2). Policy regarding the scheme should be transparent because it creating dissatisfaction among
the retail outlet holders.
3). Main competitor of Pepsi is Coke. Now a days coke is improving planning, strategies, & its
implementation. Company should also change the market strategies.
4). The forth coming market would be the market of consumer so the scheme must be consumer
oriented.
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CHAPTER - 3
42
INTRODUCATION
OF THE TOPIC
43
COMPARTIVE ANALYSIS OF PEPSICO & COCA-
COLA ON BRAND POSITIONING STRATEGIES
BRAND:
Brand the distinguishing proprietary name, symbol, or trademark that differentiates a particular
product, or service, from other of a similar nature
BRAND POSITIONING STRATEGIES:
.
1) Quality Positioning
Perception of quality is probably one of the most important elements for a brand to have and
can be combined with any of the other prompts below.
Quality or the perception of quality lies in the mind of the buyer. Build a powerful perception
of quality, and you will succeed in creating a powerful brand.
The 22 Immutable Laws of Brandis say the best way to increase perception of quality is to
narrow the company’s focused. When you narrow a product’s focus, they explain, you
become a specialist rather than a generalist, and a specialist is perceived to know more or be
of “higher quality” than a generalist.
Another way to build the perception of high quality is to simply attach a higher price tag to
your brand. More people think that they know a higher quality product from another but in
reality; things are not always as they seem.
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Believe it or not, high price is a benefit to some customers. It allows the affluent consumer to
obtain psychological satisfaction from the public pirchase and consumption of a high end
product. Of course the product or service does need to have some perk or difference to justify
the higher price.
2. Value Positioning
Although at one time, items that were considered to be a good “value” meant that they were
inexpensive that stigma has fallen by the wayside. Today, brands that are considered a value
are rising in popularity amongst consumers.
3.) Feature Driven Positioning
More marketers rely on product/service features to differentiate their brands than any other
method. The advantage is that the message is clear, and the positioning will be credible if you
stick to the facts about the product.
Unfortunately, feature orientated stances are often rendered useless if the competition comes
out with a faster or more advanced model.
4.) Relational Positioning
One of the most effective ways to create interest in a brand is to send out a positioning
prompt that resonates well with potential buyers. For instance, sketches equate sneakers with
cool and that characteristic passes to all who wear them.
These brands have achieved positioning based on who buyes what they sell, not solely by
what they sell.
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5.) Aspiration Positioning
These are positioning prompts that offer prospects a place they might like to go, or a person
they might like to be, or a stake of mind they might like to achieve.
6.) Problem/Solution Positioning
As the name implies, problem/solution prompts show the consumer how a sticky situation
can be relieved quickly and easily with the brand or service. What problem/solution
campaigns lack in imagination, they usually make up for in directness and credibility.
7.) Rivalry Based Positioning
By definition positioning deals with how one brand is thought of compared to its obvious
competitors. Therefore, the idea of a rivalry-based position might seem redundant but many
campaigns take this approach.
8.) Warm and Fuzzy Positioning
Underneath our capitalist driven needs to consume, we or still docile and emotional animals.
As such, many marketers play on our feelings.
How people feel about a brand is often times need or desire based which means that
emotional or psychological approaches can oftentimes be very effective as positioning
prompts.
9.) Benefit driven Positioning
Other brands base their entire positioning on the fact that they give back to the consumer.
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CHAPTER - 4
47
RESEARCH
METHODOLY
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RESEARCH METHODOLGY
Methodology is the most important part of such studies. The method of study adopted by me to
increase the knowledge and together more information regarding this project.
The major emphasis in such studies is on the discovery of ideas and fruitful relevant
information. As such the research design appropriate for such studies must be flexible enough to
provide opportunities for considering different aspects of a problem under study.
METHODS OF DATA COLLECTION:
1. PRIMARY DATA:
Survey Method – this method was adopted because it helped in securing detailed
information from a sample of respondents. The information received from the
respondent is recorded on a form called the questionnaire. This is only method to major
attitude and motivation directly.
Open framed discussion with managers.
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2. SECONDARY DATA:
I have also used the secondary data, which included the written document of the
sorganization and other places.
HEAD OFFICE(VBL)
INTERNETs
PAPERS & RECORDS
The data collected from the above mentioned sources helped me in getting information about the
brief history of PEPSI Co.
SAMPLING PLAN:
Target population of the universe Retailers, Maholi Road, Bus stand, State
Bank Chouraha, Dholi pyaoo, Court area,
Aurangabad, Birla Mandir, Masani, Link
Road & Kacchi Sadak, Mathura(UP)
Sampling Size 1000
Sampling Method Simple random Sampling
Area of Survey Mathura Region
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CHAPTER - 5
51
ANALYSIS
&
INTERPRETATION
52
FLAVOURS OF PEPSI
&
COCA-COLA
COMPARATIVELY
53
COLA FLAVOURS”
Cola is a most popular flavor in any group of age. This is the most saleable flavor in the world.
Both PEPSICO & COCA-COLA has its own cola flavor. PEPSICO has a cola flavor named PEPSI
and cola flavor of COCA-COLA are THUMPS UP & COKE. PEPSI COLA is a cash cow brand for
the company in terms of sales revenue. PEPSI has two comparative brands in the cola flavor.
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LIME & LEMON FLAVORS
This segment of flavor is very likely in the children and aged person . PEPSICO has three brands in
this segment with comparison to the brand of COAC – COLA . The PEPSI’S brand are
MOUNTAIN DEW, MIRINDA LEMON and 7UP whether the COCA COLA has its sprit &
LIMCA un this segment . MIRINDA LEMON is considered to be lemon in taste , comes under
the category of cloudy lemon of its color which is similar to that of clouds. It has to yield good
revenue. MOUNTAIN DEW is the sweet lemon soft drink in India and in a few countries. It is
mostly demands by the children.
7UP s lemon –lime soft drink. Sales of 7UP is third largest carbonated soft drink brand in U.S.
most consumers prefer 7up as a their favourite brand than any other non-cola.
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“ ORANGE FLAVOURS”
This is another type of flavour in the soft drink industry. The taste is like orange. In this
segment PEPSI has a brand named MIRINDA whether COCACOLA has its FANTA in orange .
this flavor is mostly preferred by children and women.
PEPSI:
COCA-COLA:
56
“ MANGO FLAVOURS”
In this category’s of flavour is like a Mango. This flavour is now becoming more popular in India. In
Mango flavour PEPSI has a well known name SLICE whether COCACOLA has a MAZAA in
this segment.
PEPSI:
COCA-COLA:
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NEW BRANDS LAUNCHED BY PEPSICO
7UP ICE :-
PEPSICO India recently launched a new flavour named “7UP ICE” IN Indian market. It is
hard that 7UP. The taste of 7UP ICE is mint.
MIRINDA BAT
PEPSICO is recently launched MIRINDA BAT BERRY. The taste of MIRINDA BAT
BERRY is like Glico din.
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NEW BRANDS LAUNCHED BY COCACOLA
SPRITE ICE
COCA-COLA India is recently launched “SPRITE ICE” in the competition of “7UP ICE” of
PEPSI. This is a newly kind of flavor ads by both of companies.
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AREA WHERE SURVEY IS CONDUCTED
1. Bus Stand
2. Maholi Road
3. State Bank Chauraha
4. Dholi PiauS
5. Court Area
6. Orangabad
7. Birla Mandir
8. Link Road
9. Kachhi Sadak
10. Masani
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Pepsi
Cocacola
ANALYSIS AND INTERPRETATION
A survey with sample size 100 is conducted on randomly basis in different parts of Mathura to take the help in comparative analysis of PEPSI & COCACOLA.
All the samples, which are selected, are the retailers/outlets of PEPSI and
.COCACOLA.
COMPARATIVE SALE IN “200 ML”
COMPARATIVE SALE IN 300 ML
The sale of pepsi in 300 ML is Greater than The coco cola.
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COMPARATIVE SALES IN “500ML”
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COMPARATIVE SALES IN “2L TR”
The comparative sale of pepsi in 2 L TR is greater than the coco cola
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COMPARATIVE SALES IN “CAN”
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EXTRA EFFORTS MADE BY RETAILERS TO SELL PEPSI
According to the survey conducted I fond that the retailers do not make some extra efforts to sell
PEPSI. The company should makes such promotion activities and motivate the retailers by any
means so that they should make some extra efforts to increase the sales of Mountain Dew.
65
CHAPTER - 6
66
FINDINGS
67
FINDINGS OF CONSUMERS SURVEY(SAMPLE SIZE 200)
Division of consumers according to :-
Age group
Below 20 40%
41%
30-40 12%
Above 40 7%
Gender
Male 70%
Female 30%
Education
Under Graduate 38%
Graduate 34%
Post Graduate 15%
Professional 13%
Profession:-
Student 56%
Service 22%
Business 18%
Any other 4%
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Frequency of consuming soft drink:-
Daily 31%
Weekly 20%
Occasionally 46%
On any occasion 3%
Reason for consuming soft Drink:-
Refreshing 65%
Hygienic 6%
Thrust 20%
Fizzy 9%
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CHAPTER - 7
70
LIMITATIONS
&
CONCLUSTION
71
LIMITATION OF THE SYUDY
Responsible managers & personals in the marketing department of varun beverage Ltd. Provide
necessary assistance to me in “Comparative Analysis Of Pepsi & Coca Cola”. They discussed
different aspects & Function of marketing .as practical pepsico India Ltd (VBL). Almost all
necessary information was provided to me in the support of this project report.
How ever some problems , which can not escape from . the limitation faced , felt or expressed by me
are as follows-
Due to lack of time (i.e. two months) it is not possible to reach all respondents.
The lack of availability of time on the respondent’s part.
Some respondent’s was biased.
Unwillingness of the respondents.
I tried to overcome on these limitations.
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CONCLUSION
CONCLUSION OF THE STUDY
73
I have studied and analyzed the comparison of PEPSI & COCA COLA on different aspects of
the market , outlets , distribution & consumers . The survey was conducted in various areas of
Mathura city with great Enthusiasm. This project report concludes that PEPSI is much strong
than the COCA COLA and 100% is tough job & the most important Thing , which I feel to
improve , is “the availability to retailers & consumers”.
The retailers & consumers both promotes either PEPSI or any other of its brands
(e.g. Mountain Dew ) for could be with regard to order processing , ware housing , inventory
Management & Transportation , besides that shop covering , time of enter & exit from the
market by the sales man , cooling appliances, glow shine board , schemes , incentives , prizes ,
gifts , discounts , proper biling , returning of defective goods , proper supply should be
improved.
My objective was to make marketing managers aware of all the problems so that a
proper course of action is required to be undertaken. The only competitor of PEPSI is COCA –
COLA & no local brands can beat PEPSI.
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CHAPTER - 8
75
RECOMMENDATION
&
SUGGESTION
RECOMMENDATIONS & SUGGESTIONS
After copleting this report I find my self able to recommend Varun Beverages Ltd. To boost up
the sales of PEPSI & it’s other brands.
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1) PRODUCT AWARENESS PROGRAMES FOR CONSUMERS & RETAILERS
SHOULD INCREASED
A) For Retailers:-The company should organize seminars , but there must be
compulsion for Retailers to attend the seminars.
B) For Consumers:- The company should organize some more programmes in different
localities . Awareness programmes may help increases the market share of PEPSICO.
2)SUPERVISION ON THE DISTRIBUTION ROOTS IS REQUIRED
The main purpose behind this is that there should be time to time eye check on
salesmen’s efficiency & on top of that they are going to meet retailers directly.
3) PROMPT DELIVERY OF PRODUCTS
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Prompt delivery of the product to the customers is very much necessary towards
enchancing the reputation of company & which is defining helpful in keeping the
customers.
4) PEPSICO should keep sales engineers in various areas to provide technical support to the
outlets related to the cooling system.
5) The schemes & the other information are properly communicated to retailers so they are
better equipped to handle the quarries of customers properly.
6) Another problem is replacement i.e. any bottle has some defect than the salesman replace it
immediately.
7) There should be the time to time & proper survey of the market.
8) on extra sales upto some predetermined margins the sales force should paid extra
commissions & bonuses.
9) The should motivate its sales force to take the achievement higher than the targeted by