Project 1

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S.Y. BS.Y. BMSMS ‘A’‘A’

GROUP MEMBERSGROUP MEMBERS KOMAL SINGH

07NISHAT SHAIKH

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PRANAV SHETTY 41

2009-10

CONTENT

1. INTRODUCTION

2. HISTORY OF COCA COLA & PEPSI

3. MARKET SHARE IN INDIA

4. MARKETING MIX ( 4 P’s)

Product

Price

Place

Promotion

5. PRODUCT MIX

6. PRICING STRATEGY

7. DISTRIBUTION CHANEL

8. BRANDING

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9. CONCLUSION

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INTRODUCTION:

In the modern urban culture consumption of soft drinks

particularly among younger generation has become very popular.

Soft drinks in various flavors and tastes are widely patronized by

urbane population at various occasions like dinner parties,

marriages, social get together; birthday calibration etc. children of

all ages and groups are especially attracted by the mere mention of

the word soft drinks.

With the growing popularity of soft drinks, the technology of its

production, preservation, transportation and or marketing in the

recent years has witnessed phenomenal changes.

The so-called competition for this product in the market is from

different other brands. Mass media, particularly the emergence of

television, has contribute to a large extent of the ever growing

demand for soft drinks the attractive jingles and sport make the

large audience remember this product at all times.

It is expected that with the sort of mass advertising, reaching

almost the entire country and offering various varieties annual

demand for the product is expected to rise sharply in the times to

come.In any marketing situation, the behavioral / environmental

variables relating to consumers, competition and environment are

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constantly influx. The competitors in a given industry may be

making many tactical maneuvers in market all the time. The may

introduce or initiate an aggressive promotion campaign or

announce a price reduction. The marketing man of the firm has to

meet all these maneuver and care of competitive position of his

firm and his brand in the market. The only route open to him for

achieving this is the manipulation of his marketing tactics.

In today’s highly competitive market place, three players have

dominated the industry; The New York based Pepsi Company Inc.

The Atlanta based coca- cola and U.K. based Cadbury Schweppes.

Through the globe, these major players have been battling it out for

a bigger chunk of the ever –growing soft drink market. Now this

battle has been evolved up to India too with the arrival of these

three giants.

HISTORY OF COCA COLA

Coca-Cola, started out as an insignificant one-man business and over the last one hundred and ten years has grown into one of the largest companies in the world. Dr. John Pemberton, an Atlanta pharmacist, invented Co ca-Cola. He concocted the formula in a three-legged brass kettle in his backyard on May 8, 1886. He mixed a combination of lime, cinnamon, co ca leaves, and the seeds of a Brazilian shrub to make the fabulous beverage. Coca-Cola debuted in Atlanta's largest pharmacy, Jacob's Pharmacy, as a five-cent non- carbonated beverage. Later on, the carbonated water was added to the syrup to make the

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beverage that we know today as Coca-Cola. In the mid-1970, more than half Coca-Cola sold was outside of the U.S. Coca-Cola products outsell closest competitor by more than two to one. One in every two cola and one in every three soft drinks is a Coca-Cola product. The best-known trademark in the world is sold in about one hundred and forty countries to 5.8 billion people in eighty different languages. This is wh y Coca-Cola is the largest soft drink company in the world. For more than 65 years, Coca- Cola has been a sponsor of the Olympics. Advertisements for Coca Cola started on the radio in the 1930s and on the television in 1950. Currently Coca-Cola is advertised on over five hundred TV channels around the world.

HISTORY OF PEPSICOBorn in the Carolinas in 1898, Pepsi-Cola has a long and rich history. The drink is the invention of Caleb Bradham (left), a pharmacist and drugstore owner in New Bern, NorthCarolina.The summer of 1898, as usual, was hot and humid in New Bern, North Carolina. So a young pharmacist named Caleb Bradham began experimenting with combinations of spices, juices, and syrups trying to create a refreshing new drink to serve his customers. He succeeded beyond all expectations because he invented the beverage known around the world as Pepsi-Cola.

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MARKET SHARE IN INDIA

These two soft drink companies (Coca cola & Pepsi) acquire the major share of the soft drink Industry and always remain in the war to get the majority of market share with each other. These companies always be pioneer in using various innovative technology and method to become the market leader. These companies present the world new innovative ways of doing the marketing and how take advantage of various opportunities and how to use your strength in a better way.In India currently colas (carbonated soft drinks) products comprises 61% and non-cola segment constitutes 36% of the total soft drink market whereas 2% is covered under other various drinks like apple juice, cold coffee, cold tea etc.

OPPORTUNITY IN INDIAN MARKET

As in India, around 120 billion liters of beverage is consumed every year, of which only 5 percent are in packaged segment and also if we compare per head consumption of soft drink in India to America it is 6 is to 700. So looking at these aspects we can say that there is lot of scope for these two soft drink giant in India to expand their market as the stakes are huge in Indian market.

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MARKETING MIX

ProductCoke - Product

The Coca-Cola formula is The Coca-Cola Company's secret recipe for Coca-Cola. As a publici ty marketing strategy started by Robert W. Woodruff , the company presents the formula as one of the most c lose ly he ld t rade secre ts ever and only a few employees know or have access to . This Coca-Cola formula appears to be the or ig ina l formula to Coca-Cola . I t i s f rom the book “For God, Country and Coca-Cola” .

The company Coca-cola is a mult inational and i t is not l imited to one product. Through the years they have invented and introduced many products than their main cola drinks.

Pepsi - ProductThe Pepsi-Cola drink contains basic ingredients found in most other similar drinks including carbonated water, high fructose corn syrup, sugar, colorings, phosphoric acid, caffeine, ci tr ic acid and natural f lavors. The caffeine free Pepsi-Cola contains the same ingredients but no caffeine.

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Coke v/s Pepsi- Product As seen above both the companies Coke and Pepsi have a number of products. Many of these products are innovations but there are also many products which are brought out just as a competi t ive product for the other companies. Some of these products that are brought in the market by both the companies to compete against each other are as follows:

Coke Pepsi

The main dark cola drink of the company which started the

rivalry between these companies.

Pepsi version of dark cola which is the major primary competitor

to Coke.

Fu l l Th ro t t l e i s an ene rgy d r i nk b r and p roduced by The Coca -

Co la Company . I t debu t ed i n l a t e

2004 i n Nor th Amer i ca .

AMP i s an ene rgy d r i nk p roduced and d i s t r i bu t ed by Peps iCo unde r

t he Moun ta in Dew so f t d r i nk b r and .

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Vau l t i s a c a rbona t ed beve rage t ha t was r e l e a sed by The Coca -

Co la Company i n June 2005 .

Moun ta in Dew MDX i s an ene rgy d r i nk manufac tu r ed and

d i s t r i bu t ed by Peps iCo unde r t he Moun ta in Dew b rand . I t was

i n t roduced i n 2005 .

Powerade i s a spo r t s d r i nk by The Coca -Co la Company and cu r r en t l y number two i n t he

spo r t s d r i nk marke t wor ldwide .

Gato rade i s a non -ca rbona t ed spo r t s d r i nk marke t ed by Quake r

Oa t s Company , a d iv i s i on o f Peps iCo . Or ig ina l l y made fo r

a t h l e t e s , i t i s now o f t en consumed a s a snack beve rage .

Sp r i t e i s a c l e a r , l emon- l ime f l avo red , non -ca f f e ina t ed so f t

d r i nk , produced by t he Coca -Co la

Company . I t was i n t roduced t o 7 Up is a brand of a lemon-lime

flavored soft drink.

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t h e Un i t ed S t a t e s i n 1961 .

Minute Maid is a product l ine of beverages, usually

associated with orange juice, but now extends to

soft drinks of many kinds. The Minute Maid company

is now owned by Coca-Cola, and is the world 's largest marketer of fruit juices and drinks. I t is

headquartered in Houston, Texas .

Tropicana Products is an American company based

in Bradenton, Florida, USA, which is one of the world 's largest producers and marketers of orange juice. I t has been owned by PepsiCo, Inc. s ince

1998.

Nestea i s a brand of iced tea manufac tured and dis t r ibuted

by the Nest le company 's beverage depar tment in the Uni ted Sta tes , and by Coca-

Cola in severa l Eu ropean

Lipton Orig ina l Iced Tea i s a ready- to-dr ink iced tea brand

sold by Lipton through a wor ldwide par tnership wi th

Pepsi .

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coun t r i e s , B raz i l and Venezue l a .

Ba rq ' s i s a b r and o f r oo t bee r no t ab l e fo r be ing t he on ly ma jo r

Nor th Amer i can roo t bee r t o con t a in c a f f e ine . I t ha s been

bo t t l ed s i nce t he s t a r t o f t he 20 th cen tu ry and i s cu r r en t l y so ld by

t he Coca -Co la Company .

Mug Root Beer is a brand name of root beer made by the Pepsi

company.

Die t Coke o r D ie t Coca -Co la i s a suga r - f r ee so f t d r i nk p roduced

and d i s t r i bu t ed by The Coca -Co la Company . I t was i n t roduced i n t he Un i t ed S t a t e s i n Ju ly 1982 .

D ie t Peps i i s a l ow-ca lo r i e c a rbona t ed co l a . I t was

i n t roduced i n 1964 a s a va r i an t o f Peps i -Co l a w i th no suga r .

Kinley is a brand of st i l l or carbonated water

Aquafina is a non-carbonated bottled water

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Aqua r iu s i s a m ine ra l spo r t s d r i nk manufac tu r ed by The Coca -

Co la Company . I t was f i r s t i n t roduced i n 1983 .

All Spor t was a spor ts dr ink . I t i s produced by PepsiCo.

Fanta i s a sof t dr ink brand owned by The Coca-Cola

Company. I t i s produced and dis t r ibuted by The Coca-Cola

Company 's bot t le rs .

Mirinda is a brand of soft drink. Mirinda is owned

by PepsiCo.

Spr i t e I c e was t he f i r s t f l avo r

ex t ens ion fo r The Coca -Co la

Company ' s Sp r i t e b r and so f t

Pepsi Blue is a soft drink made by PepsiCo and launched in

mid-2002.

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d r i nk .

Coca -Co la B l ak i s a co f f ee -f l avou red so f t d r i nk i n t roduced

by Coca -Co la i n 2006 .

Peps i Cappucc ino i s a c appucc ino - f l avo red ca rbona t ed so f t d r i nk p roduced by Peps i co .

Maaza i s a Coca -Co la f ru i t d r i nk b r and marke t ed i n Ind i a and

Bang l adesh .

S l i c e i s a l i ne o f f ru i t - f l avo red so f t d r i nks manufac tu r ed by

Peps iCo and i n t roduced i n 1984 .

Limca is a lemon and l ime flavoured carbonated soft

drink made in India by Coca-cola .

Teem was a lemon-lime-flavored soft drink

produced by The Pepsi-Cola Company.

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PRICECoke - Price

Coke was a company ruling the markets before Pepsi entered. Earl ier the price of coke was cost based i .e . i t was decided on the cost which was spent on making the product plus the profi t and other expenses.

But after the emergence of other companies especial ly the l ikes of Pepsi , Coca-cola started with a pricing strategy based on the basis of competi t ion. Nowadays more expenses are spent on advert ising my soft-drink companies rather than on manufacturing.

Coke has brought in a revolution especial ly in Indian markets with the Rs. 5 pricing strategy which was very famous. I t was the f irst company to introduce the small bott le of Coke for just Rs.5. This campaign was very successful especial ly with the price conscious Indian consumers.

Even today most prices of Coke are decided on the basis of the competi t ion in the market .

Pepsi – Price

Pepsi again decides i t price on the basis of competi t ion. The best think about the company Pepsi is that i t is very f lexible and i t can come down with the price very quickly. The company is renowned to bring the price down even up to half i f needed.

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But this r isk taking at t i tude has also earned Pepsi losses. Though lowering the price would at tract the customers but i t would not help them cover up the cost incurred in production hence causing them losses.

This was the si tuation earl ier but now Pepsi is a full-f ledged and growing company. I t has covered al l i ts losses and is now growing at a rapid rate.

PLACECoke - Place

Coke is a mult inational company and i t has i ts market around the entire world. This can be said just by the f irst page on i ts s i te which asks people to select the place of their choice. The website looks something l ike this:

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Pepsi – Place

Pepsi again has spread worldwide. Pepsi when entering a new market does not go in alone but i t looks for partners and mergers. Til l now Pepsi has collaborated with companies l ike Quaker Oats, Fri to-lays, Lipton, Starbucks, etc.

Pepsi l ike Coke has spread al l over the world. I t is because of this worldwide spread that now it is coming up with Advert isements which can be broadcasted in the different nations in the world. The recent example with would be the Pepsi advert isements having David Beckham as i t brand ambassador.

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PROMOTIONPromotion is one of the four aspects of marketing.

Promotion comprises four subcategories:1. Advert ising 2. Personal sel l ing 3. Sales promotion 4. Publici ty and public relat ions

The specification of these four variables creates a promotional mix or promotional plan. A promotional mix specifies how much at tention to pay to each of the four subcategories, and how much money to budget for each. A promotional plan can have a wide range of objectives, including: sales increases, new product acceptance, creation of brand equity, posit ioning, competi t ive retal iat ions, or creation of a corporate image.

Both the companies Pepsi and coke are famous for their promotions. The rivalry was f irst s tarted when Pepsi started with i ts bl ind taste tests known as the Pepsi Challenge. The challenge is designed to be a direct response to cri t ics who allege that Coca-Cola and Pepsi-Cola are identical drinks, with no meaningful differences. The challenge takes the form of a taste test . At malls , shopping centers and other public locations, a Pepsi representat ive sets up a table with two blank cups, one containing Pepsi and one with Coke. Shoppers are encouraged to taste both colas, and then select which drink they prefer. Then the representat ive reveals the two bott les so the taster can see whether they preferred Coke or Pepsi . If Pepsi is revealed, the shopper is given a small prize. The

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implication is that Pepsi tastes better than Coke, and thus consumers should purchase Pepsi .

In blind taste tests , more consumers prefer the taste of Pepsi to that of Coca-Cola. Because Coke was the historical leader, more people expected that they'd prefer and select Coke. Their surprise at picking Pepsi in the blind taste test (products were served in unmarked cups) helped change their minds about which product they prefer. Capturing this on f i lm, Pepsi turned this into a memorable TV campaign that lasted many years.

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PRODUCT MIXA product is anything that can be offered to a market to satisfy a want or need, including physical goods, services, experiences, events, persons, places, properties, organizations, information, and ideas.If we take the example of soft drink industry, then these companies not only sell soft drinks in physical forms, but brands. A brand comprises of everything from beverages to experiences. However in this chapter we shall try to understand and analyze the product line and product classification of Pepsi and coca cola.

1. PRODUCT PORTFOLIOBoth the cola majors have a variety of products available in their kitty. They have a wide range of product line. They keep coming on with new products to attract the customers and to have a major share of the market. So the product portfolio of these companies is as follows: COCA COLAThe Coca-Cola Company has more than 2800 products in over 200 countries. From Inca Kola, a sparkling beverage found in North and South America, and Samurai, energy drink available in Asia; to Vita, an African juice drink, and BonAqua, water found on four continents, their product variety spans the globe…

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The various products of Coca-Cola available in India are:

Coca-Cola: Coca-Cola is the most popular and biggest selling soft drink in history, as well as the best-known product in the world.Available in the following flavors: Cola, Cola Green Tea, Cola Lemon, Cola Lemon Lime,Cola Lime, Cola Orange and Cola Raspberry.

Diet Coke: Diet Coke was born in 1982. Diet Coke is thedrink for people who want no calories, but plenty of taste. Known as Coca-Cola light in some countries, it's now the No.3 soft drink in the world.Available in the following flavors: Black Cherry Cola Vanilla, Cola, Cola Green Tea, ColaLemon, Cola Lemon Lime, Cola Lime, Cola Orange and Cola Raspberry

Fanta: Fanta was introduced in the United States in 1960.Consumers around the world, particularly teens, fondly associate Fanta with happiness and special times with friends and family. This positive imagery is driven by the brand's fun, playful personality, which goes hand in hand with its bright color, bold fruit taste and tingly carbonation.

Kinley: Kinley is a carbonated water that comes in widearray of variants such as tonic, bitter lemon, club soda and a myriad of fruit flavors.Available in the following flavors: Apple Peach, Bitter Grapefruit, Bitter Herbal, BitterLemon, Bitter Water, Blueberry Pomegranate, Club Soda, Ginger Ale, Lemon and Raspberry

Limca: This thirst-quenching beverage features a fresh, lightlemon- lime taste and fun loving attitude. It's a homegrown, national treasure in India that is acquired by the Coca- Cola Company in 1993. Limca continues to build a loyal following among young adults who love the lighthearted way it complements

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the best moments of their lives. This drink is available in lemon flavor.

Sprite: Introduced in 1961, Sprite is the world's leading lemon-lime flavored soft drink. Sprite is sold in more than 190 countries and ranks as the No. 4 soft drink worldwide, with a strong appeal to young people. Millions of people enjoy Sprite because of its crisp, clean taste that really quenches your thirst. But Sprite also has an honest, straightforward attitude that sets it apart from other soft drinks. Sprite encourages you to be true to who you are and to obey your thirst.

Available in the following flavors: Bitter Lemon CitrusGrapefruit, Citrus, Lemon and Lemon Lime

PEPSICOPepsi 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 best known, 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.The various product of Pepsi available in India are:

Pepsi: Pepsi is the most saleable product of PepsiCo. It ispopular in the younger generation all around the world.Diet Pepsi: 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.

Mirinda: Mirinda was originally produced in Spain. Mirindais a brand of soft drink available in fruit varieties including orange, grapefruit, and apple, strawberry, pineapple, banana, and passion fruit and grape flavors. The orange flavor of Mirinda represents the majority of Mirinda sales worldwide.

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7up: 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 itslicensees) in the rest of the world.

Mountain Dew: Mountain Dew (also known as Mtn Dew asof 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.

Pepsi Blue: Pepsi Blue is a berry-flavored soft drinkproduced by PepsiCo. It was launched in India near the cricket world cup to associated the Pepsi with the Indian people as Blue is official colour of Indian cricket team. The flavor of Pepsi Blue was thought by drinkers to be similar to cotton candy with a berry-like aftertaste (it resembled that of blueberries or raspberries).

Slice: Slice is a line of fruit-flavored soft drinksmanufactured 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.

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PRODUCT LIFE CYCLE

To be able to market its product properly, a business must be aware of the product life cycle of its product. The standard product life cycle tends to have five phases- DEVELOPMENT- INTRODUCTION- GROWTH- MATURITY- DECLINE

In America carbonated soft drink market is currently in the maturity stage, which is evidenced primarily by the fact that they have a large loyal group of stable customers but in the developing countries like carbonated soft drinks are in growth stage, which is evidenced by looking at the per head consumption of 6 bottles in India is lagging behind the US astounding 700 bottles per head consumption.

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POSITIONING AND PROMOTION

Positioning is the act of designing the company offering and image to occupy a distinctive place in the mind of the target market.1) COKE AND PEPSI POSITIONING

Coke had introduced in the market before the Pepsi. So taking the first move advantageCoke is able to place itself as the all American choice.Firstly the Pepsi in America try to position its product for the society as whole and for the purpose of refreshment, which can be clearly visible from their advertisement slogans like- “any whether is Pepsi whether”- “the light refreshment”- “be sociable, have a Pepsi”This positioning strategy they followed up to 1960 and after analyzing that it is very difficult to capture whole population as whole. So Pepsi after 1960 started targeted marketing. Pepsi targeted the youth section and position there product as a necessity for youth and Pepsi advertisement slogan after 1960 try to position Pepsi as the brand for youth which are clearly visible from there advertisement as follow

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ADVERTISEMENT IN INDIA REPRESENTING YOUTH

- “now its Pepsi for those who thing young”- “come alive, you’re in Pepsi generation “- “you’re got a lot to live and Pepsi’- “yeh hai youngistaan meri jaan” (in India)- “taste the once that’s forever young”

In the 1960s and early 1970s, PepsiCo was a much more aggressive and innovative company than coke. In this period Pepsi outflank coke to survive. In early 1975s Pepsi introduced the Pepsi challenge marketing campaign where PepsiCo set up a blind tasting between Pepsi-cola and Coca-cola. In this Pepsi started direct road show taste competition in which two glass of soft drink one is Pepsi and another is Coke is given to person not known by him which glass contain which soft drink and after tasting both the glasses they ask which soft drink is having better taste. In this competition Pepsi said 80% of people like Pepsi taste over Coke. PepsiCo took this a great advantage of the campaign with television commercial reporting the test results to the public. So through this competition Pepsi is able to position itself in the mind of customer that Pepsi have better the taste than coke.Coca cola follows Push Strategy to advertise and sell their product in the market. Coca cola usually giving higher discount to the retailer fills their selves space with their product and when the consumer see only coca cola in the market they are forced to buy there product only.In India both Coca-cola and PepsiCo have shown the door to older celebrity endorsers and are betting big on emerging stars.PepsiCo was parted ways with Shah Rukh Khan, Sachin Tendulkar, Rahul Dravid, Sourav Ganguly, Mahender Singh Dhoni, Ranbir Kapoor, Deepika Padukone, Ishant Sharma,Rohit Sharma, Shreeshant and Virender Sehwag to strengthen its “youngistaan” brigade.

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PepsiCo signed Asin (of Ghajini fame) to take war to orange flavor category. PepsiCo had tied up with Chennai super kings for its 7up brand, which is the most preferred drink there.PepsiCo has also signed on Telegu movie actor Ram charanteja as part of its youngistaan campaign to endorse Pepsi in Andhra Pradesh.

Coca cola try to positions themselves as the happiness bringing drink and drink for every community as visible from above advertisement. As this is well judged by their advertisement and their slogans. Their are different advertisement, which depicts that’s coca cola, is the need for party or coca cola brings more joy and taste to the party. Coca cola has roped in GautamGambir as brand ambassador for the company new “coca cola open happiness” campaign ahead of IPL seasons. While the single ad campaign works wonders, giving the difference in consumption patterns in the south, the coca cola majors had customized their advertisement for the four southern states. Coca cola, on the other hand identified the southern market as a great testing ground for its new brands, so much so that both its pulpy orange drink, minute maid and Fanta apple were first launched, marketed and advertised them before a pan India roll-out and a national campaign.

POSITIONING OF PRODUCT LINE EXTENSION

(COKE AND PEPSI)Pepsi and coke have range of product in their basket, which are targeted to different market segment and their positioning are done in that way.THUMS UP (COCA COLA) & MOUNTAIN DEW (PEPSICO) Thums up of coca cola and mountain dew of Pepsi are targeted to the adventurous and energetic people that are interested in adventure and love taking risk to succeed. The advertisement of both the soft drink positions them in mind of consumer as the

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strong soft drink. Thums up campaign, however, has been led by Akshay Kumar with his gravity defying stunts in the forefront. Similarly mountain dew giving advertisement like “darr kaaage jeet hai” position it as strong soft drink in mind of consumer.

TROPICANA & MINUTE MAIDTropicana of PepsiCo and Minute Maid of Coca cola are specially targeted to health conscious customers and want health drink having natural energy in it. These drinks come under the category of juices so these drink basically launched to transfer the consumer, which drink juices to Tropicana and Minute maid.

MIRINDA (PEPSICO) & FANTA (COCA COLA)These drinks are specially launched for the lady sector of the population and these drinks are positioned in that way only. In the advertisement also they take lady personality for the promotion of these product so that the product make a space in lady sector.

TAB (COCA COLA)Tab of coca cola initially flopped as diet cola because consumer could not tell the difference between tab with one calorie and diet Pepsi, which then had 100, as coke was not able to position it correctly in mind of the customer. Then coke figured out that it could position the tab or dramatized the difference by surrounding the bathing beauty with 100 empty tab bottles. Armed with that insight, coke flooded the try screen with ads and backed them up in stores with display, signs and samples and after that it was a tremendous success.So until you are not able to correctly position your product in consumer mind it is impossible to get the success.

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INNOVATION IN ADVERTISEMENT METHODS

Industry observers say dependence on try is down to 75 percent from 95 percent till few years ago. Investment is going into out of home advertising, point-of-sale promotion and emerging media like radio and Internet. SUB-MINIMAL EFFECT ADVERTISEMENTUnderstanding the concept that increase in sale of complementary good helps in increasing the sale of the product. Coca cola starts advertising in movie- theaters and giving advertisement “drink coke and eat popcorn”. This resulted in 2% sales increase of coca cola and 10% sales increase of popcorn. The choice of Movie Theater is because in movie theaters there are very less thing to distract mind of the person.Pepsi is also now advertise their product with snacks like sandwich, south Indian food etc so that when the consumer ask or eat that snack the picture of Pepsi come to their mind and they will ask for the Pepsi. This is know as Sub-minimal effect in which consumer did not get the idea how advertisement is influencing them.

COKE AND PEPSICO AD WARA battle is hotting up in India between the two international Cola giants, Coke and Pepsi, to corner a bigger share of the nearly Rs.6500 crore market. “Share my dream,” said Coca- Cola to the Indian consumer in 1993. Older Coke lovers welcomed the world's best-known brand back with misty eyes. The younger lot just shrugged. Among soft drinks, Coke was stronger than Pepsi among the older people (evidently nostalgia was at work) while Pepsi obviously scored above Coke with 'Generation next'. Coke was the official drink for the Wills World Cup but Pepsi blew officialdom to bits with its cheeky 'Nothing official about it'.

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After losing the world cup rights to Coke, Pepsi launched an aggressive campaign signing up leading Indian cricketers. In 1998, Coke's teen strategy finally moved into place. It signed on Saurav Ganguly and Srinath and came up with the peppy 'Eat crickets, sleep cricket, drink only Coca-Cola'. A near winner was 'Peeti kya Coca-Cola?' The aim was to fix the brand's message in consumer mind space. Just as Coke ads were finally telling stories the way Indian consumers like it, aided by Aamir-appeal, Hrithik- mania and Aditi-gaze, comes a damp squib about four friends growing up with Coke, too desperate and too dull. The stakes are high and the two Cola giants are slugging it out for every bit of this market share, even if it means bitter tactics at times. Between Coke and Pepsi they have signed on nine players of the Indian cricket team and Bollywood seems to be the next hot spot they want to cool. For now, it's Shah Rukh, Rani Mukherjee, Kajol, Preity Zinta and Superstar Amitabh Bachchan in the blue (Pepsi) corner andAmir, Hrithik, AditiGowatrikar and Aishwarya, in the red (Coke). The battle continues with Aamir Khan and Aishwariya Rai both wooed away from Pepsi by tempting offers from Coke. However this is just the beginning and things are likely to get even hotter.

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PRICING STRATEGYPrice is not just a number tag. Price comes in many forms and performs many functions. It is one of the factors that affect the sales in a drastic ways.

1. PEPSI PRICING STRATEGY IN 1936Pepsi gained popularity following the introduction in 1936 of a 12-ounce bottle. Initially priced at 10 cents, sales were slow, but when the price was slashed to five cent, sales increased substantially. Pepsi encouraged price-watching consumers to switch referring the coca cola standard of six ounces a bottle for the price of five cents (a nickel), instead of the 12-ounces Pepsi sold at the same price. In 1936 alone 500 million bottles of Pepsi were consumed. For 1936 to 1939, Pepsi profit doubled and there is also a dramatic increase in sales of Pepsi. This case of Pepsi presents the live example how the pricing makes difference in marketing process of a firm.

2. PRICING MIX (COCA COLA AND PEPSI)There is the time (2002-2003) when Coca cola and Pepsi tried to appeal to the masses through a 200ml bottle priced at Rs.5. It brought down the average price of its product toRs.5 thereby bridging the gap between soft drink and other local option like tea, milk, and sugarcane juice or lemon water and it also makes the price point of the soft drink within the reach of high potential rural market.Coca cola and Pepsi in the market place now start with the basic introductory pack, which is a 200 ml returnable glass bottle priced at Rs.8 and is available across low income and rural areas. The next pack size is 300 ml at Rs.10 and is focused on those willing to pay more within the immediate consumption arena. Coca cola and Pepsi recently introduced an on-the-go pack as research showed it that the next pack of 600ml (mobile) was too much to consume on

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the go. The new on-the-go consumption pack is called the “express pack” and doing well in channels such as travel, malls, so on, where people want a single serve and it is priced at Rs.20. Can packing (250 ml) of Coca cola and Pepsi is priced at Rs.15. The company also introduced the party pack of 2 liter of the consumption in the party and is priced at Rs.55. The average price of this packing is cheap than other packing as to increase the consumption of soft drink in the market.PepsiCo India priced So Be Adrenaline Rush (premium product) at Rs.75 for the can of 245ml. So Be Adrenaline Rush is a maximum energy supplement aimed at helping consumers perform at their peak by energizing their body and mind and charging up energy an alertness levels. As this is a premium and launched drink with energy booster so it is priced at higher price as compare to other drink. PepsiCo also introduced their sport drink in 500 ml packing for Rs.35. As this drink is specially introduced for the specifically sports segment so it is costlier as compare to other drinks. It also introduced its Nimbooz in packing of 200ml at Rs.10. Tropicana of PepsiCo comes in packing 200ml at Rs.15 and in packing 1 liter at Rs.65. Coca cola also introduced its pulpy orange drink (Juice), Minute Maid, in India at Rs20 in the 500ml.

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DISTRIBUTION CHANNELDistribution (or place) is one of the four elements of marketing mix. Frequently there may be a chain of intermediaries; each passing the product down the chain to the next organization, before it finally reaches the consumer or end-user. This process is known as the 'distribution chain' or the 'channel’. So we say that a set of interdependent organizations involved in the process of making a product available for the use or consumption is know as Distribution channel. Each of the elements in these chains will have their own specific needs, which the producer must take into account, along with those of the all-important end-user.

1. DISTRIBUTION STRATEGYCoca cola and PepsiCo are world wide famous for their Distribution channel. In India the distribution network of Coca cola had 6.5lakh outlets across the country in 2000 and on the other hand Pepsi Co's distribution network had 6 lakh outlets across the country in the same year. Coca cola and PepsiCo had formulated different distribution strategy for urban sector and rural sector. For the urban distribution channel these companies adopted the model like direct store distribution, broker warehouse distribution and Vending & Food Service (V&FS) systems where as these companies are following the Hub and Spoke model for rural distribution channel, in which they divided the different categories of distributors according to the area they are covering.

2. INTERNATIONAL DISTRIBUTION SYSTEM MANAGEMENTIn order to manage its distribution systems effectively, PepsiCo and Coca cola had put in place-advanced logistics systems. They sold beverage concentrate to bottlers, who added carbon dioxide, sweetener and water to make beverages and beverage syrup. Syrup was either sold directly to the fountain accounts or was combined

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with carbonated water for bottling. Bottling companies were (with a few exceptions) owned and operated by local companies in the countries where PepsiCo and Coca cola operated.

BRANDINGBrand is defined as a name, term, symbol, or design, or a combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors. A brand is thus a product or service that adds dimension that differentiate it in some way, from other products or services designed to satisfy the same need. These differences may be functional, rational, or tangible, related to product performance of the brand. They may also be more symbolic, emotional or intangible related to what brands represent.

1. BRAND NAMEThrough various researches it is been found that a symbolically significant name helps to sell a product. One of interesting illustration how name affects marketing is the case study of coca cola. When it was introduced in china in the 1920, coca cola sounded like “kou-kekou-la” which means “a thirsty mouth and a mouth of candle wax”. The company changed the phonetic translation to “ke-kou-ke-le” which means “a joyful taste & happiness” thirsty Chinese consumers responded in drove to the more felicitous “meaning”.

2. PACKAGINGCoca cola and Pepsi are much innovated in the packing of their product. These companies introduced different concept of packing. The Airtight bottle concept is given by the Coca cola, which has revolutionized the bottling and packaging industry. These Cola giant also introduced the different size of returnable glass bottle

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like 200ml, 300ml and non returnable plastic bottle like 600 ml, 1.5 litres, 2 litres according to the need of the targeted customer. They also pioneer in bring Cans and Frosted bottles in the market. Packing helps the brand to capture the desire target like 600ml packing is launched, as “express pack” so this is targeted to touring population and this segment needs non-returnable bottles. The Coca cola is innovative in design of bottle like Fanta, Aquafin (500ml & 1 litre) having curve shaped bottle that are easy to hold.

3. LABELINGPepsiCo has associated it self to rich deep blue colour as blue colour represents eternal youthness and openness that is appropriately consistence with the youth segment they are targeting. PepsiCo under the name of Project Globe Campaign spent 637 million dollars over 5 years, to introduce the new rich deep blue colouring. So labeling helps the brand to get attach with the targeted segment.

4. UNDERSTANDING OWN BRAND IMAGEBattered by competition from the sweeter Pepsi cola, Coca-cola decided in 1985 to replace it’s old formula with a sweeter variation NEW COKE. Coca-Cola spent $4 million on market research. Blind taste tests showed that coke drinkers preferred the new sweetener formula, but the launch of new coke provoked a national uproar, market researcher had measured the taste but had failed to measure the emotional attachment consumer had to coca-cola.There were angry letters, formal protests and even law suits threats to force the retention of “the real thing”. Ten weeks later, the company withdrew NEW COKE and reintroduced its century old formula as “classic coke” giving the old formula even stronger status in the market place.

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5. BRANDING IN RURAL MARKET BY COCA COLAIn India (2002), Coca cola launched a new advertisement campaign featuring leading Bollywood star Amir Khan.The advertisement with tagline-“Thanda matlab COCA COLA” was targeted at rural semi urban consumers.The idea was to position Coca cola as a generic brand for cold drinks. The campaign was launched to supports Coca cola rural initiative. However, the poor rural infrastructure and consumption habits that are very different from those of urban people were two major obstacles to cracking the rural market for coca-cola

6. BRAND REVITALIZATIONTo recover and reposition brand in mind of consumer when it is not working successfully is know as Brand Revitalization. So there is an interesting example how brand repositioning helps in recovering and growth of the product.Pepsi initially introduced Mountain Dew in 1969 and marketed it with the countrified tagline “Yahoo Mountain Dew”! It’ll tickle your inwards.” By the 1990s, the brand was languishing on store shelves despite an attempt to evolve the image with outdoor action scenes. To turn the brand around, Mountain Dew updated the packaging and launched ads featuring a group of anonymous young males-the “Dew Dudes” –participating in extreme sports such as bungee jumping, skydiving, and snowboarding while consuming mountain dew. The brand slogan became “do the DEW”. The brand’s successful pursuit of young soda drinkers led to mountain dew challenging diet coke to become the number three selling soft drink in terms of market share by 2000.

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CONCLUSIONS

Hence we would like to conclude our project study on

“MARKETING ANALYSIS OF COCA-COLA AND PEPSI” by

saying that Pepsi is the market leader in terms of soft drinks in

India, but comes second to Coca-Cola which consists of Coca-Cola

and park brands. Pepsi’s main target is obviously to be the market

leader and leave its nearest competitor, Coca-Cola, far behind.

They have a cut throat competition between themselves. Whatever

strategy is followed by one company, it is copied by the other.

We have also learnt various Marketing Tools of both the

companies and Marketing Strategies of Coca-cola and Pepsi.

BIBLIOGRAPHY Marketing Management- By Philip Kotler

www.Pepsico.indialtd

www.coca-colaindia.com

Management Paradise. (www.managementparadise.com)

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