Research Methodology of Pepsico Co Ltd(final)

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I NTRODUCTI ON OF RESEARCH

Research in common parlance refers to a search for knowledge. Once can also defineresearch as a scientific and systematic search for pertinent information on a specific topic. Infact, research is an art of scientificinvestigation. The Advanced Learner‘s Dictionary of

Current English lays down the meaning of research as ―a careful investigation or inquiryespecially through search for new facts in any branch of knowledge. Redman and Mory

define research as a ―systemat ized effort to gain new knowledge.Some people consider research as a movement, a movement from the known to the unknown. It is actually a voyageof discovery. We all possess the vital instinct of inquisitiveness for, when the unknownconfronts us, we wonder and our inquisitiveness makes us probe and attain full and fuller understanding of the unknown. This inquisitiveness is the mother of all knowledge and themethod, which man employs for obtaining the knowledge of whatever the unknown, can betermed as research. Research is an academic activity and as such the term should be used in atechnical sense. According to Clifford Woody research comprises defining and redefining problems, formulating hypothesis or suggested solutions; collecting, organizing andevaluating data; making deductions and reaching conclusions; and at last carefully testing theconclusions to determine whether they fit the formulating hypothesis. D. Slesinger and M.

Stephenson in the Encyclopedia of Social Sciences define research as ― the manipulation of things, concepts or symbols for the purpose of generalizing to extend, correct or verifyknowledge, whether that knowledge aids in construction of theory or in the practice of anart. Research is, thus, an original contribution to the existing stock of knowledge making for its advancement. It is the pursuit of truth with the help of study, observation, comparison andexperiment. In short, the search for knowledge through objective and systematic methodof finding solution to a problem is research. The systematic approach concerning

generalization and the formulation of a theory is also research. As such theterm ‗research‘refers to the systematic method consisting of enunciating the problem, formulating ahypothesis, collecting the facts or data, analyzing the facts and reaching certain conclusionseither in the form of solutions(s) towards the concerned problem or in certain generalizationsfor some theoretical formulation.

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RESEARCH M ETH ODOLOGY

Research methodology is a way to systematically solve the research problem. It may beunderstood as a science of studying how research is done scientifically. In it we study the

various steps that are generally adopted by a researcher in studying his research problemalong with the logic behind them. It is necessary for the researcher to know not only theresearch methods/techniques but also the methodology. Researchers not only need to knowhow to develop certain indices or tests, how to calculate the mean, the mode, the median or the standard deviation or chi-square, how to apply particular research techniques, but theyalso need to know which of these methods or techniques, are relevant and which are not, andwhat would they mean and indicate and why. Researchers also need to understand theassumptions underlying various techniques and they need to know the criteria by which theycan decide that certain techniques and procedures will be applicable to certain problems andothers will not. All this means that it is necessary for the researcher to design hismethodology for his problem as the same may differ from problem to problem. For example,an architect, who designs a building, has to consciously evaluate the basis of his decisions,i.e., he has to evaluate why and on what basis he selects particular size, number and locationof doors, windows and ventilators, uses particular materials and not others and the like.Similarly, in research the scientist has to expose the research decisions to evaluation beforethey are implemented. He has to specify very clearly and precisely what decisions he selectsand why he selects them so that they can be evaluated by others also.

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I NTRODUCTION OF PEPSI CO

At the 20's and 30's in the 20 century, Coca-Cola was the absolute leader of soft drink market.Pepsi-Cola was just a new brand at that time. Pepsi-Cola was thought of just a copy of Coca-Cola and its flavor is similar to Coca-Cola. So the Coca-Cola did not take any importance for it. But later Pepsi-Cola developed fast and became the strongest competitor to the Coca-Colaand now Pepsi shared 40% of the market. It is a big threat to the Coca-Cola.

PepsiCo, Inc. is one of the world's top consumer product companies with many of the world'smost important and valuable trademarks. Its Pepsi-Cola Company division is the secondlargest 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--are among the top ten soft drinks in the U.S. market. TheFrito-Lay Company division is by far the world leader in salty snacks, holding a 40 percentmarket share and an even more staggering 56 percent share of the U.S. market. In the UnitedStates, Frito-Lay is nine times the size of its nearest competitor and sells nine of the top tensnack 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 andmore 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. The competitor of Pepsi in the Pakistani market is coca-cola and some local beverages are also disturbing Pepsi‘s share in the market. E.g.: macca

cola, amrat cola and some others. Pepsi is the leading cola in the world doing business inmore than 190 countries and because of this it is very famous in every country. As Pepsi is avery rich brand so the advertises for its popularity are also very costly because Pepsi hire‘s

most famous stars from show biz or from the world of sports means cricket, football, car racing and tennis e.t.c. all the famous stars from the world have worked in the Pepsiadvertise.

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Cola enterprise. By 1907, the new company was selling more than 100,000 gallons of syrup per year.

Growth was phenomenal, and in 1909 Caleb erected aheadquarters so spectacular that the town of New Bern picturedit on a postcard. Famous racing car driver Barney Oldfieldendorsed Pepsi in newspaper ads as "A bully drink...refreshing,invigorating, a fine bracer before a race."

The previous year, Pepsi had been one of the first companies inthe United States to switch from horse-drawn transport to

motor vehicles, and Caleb's business expertise capturedwidespread attention. He was even mentioned as a possiblecandidate for Governor. A 1913 editorial in the GreensboroPatriot praised him for his "keen and energetic business sense."

Pepsi-Cola enjoyed 17 unbroken years of success. Caleb now promoted Pepsi sales with theslogan, "Drink Pepsi-Cola. It will satisfy you." Then came World War I, and the cost of doing business increased drastically. Sugar prices see sawed between record highs and disastrouslows, and so did the price of producing Pepsi-Cola. Caleb was forced into a series of businessgambles just to survive, until finally, after three exhausting years, his luck ran out and he was bankrupted. By 1921, only two plants remained open. It wasn't until a successful candymanufacturer, Charles G. Guth, appeared on the scene that the future of Pepsi-Cola wasassured. Guth was president of Loft Incorporated, a large chain of candy stores and sodafountains along the eastern seaboard. He saw Pepsi-Cola as an opportunity to discontinue anunsatisfactory business relationship with the Coca-Cola Company, and at the same time to

add an attractive drawing card to Loft's soda fountains. He was right. After five owners and15 unprofitable years, Pepsi-Cola was once again a thriving national brand.

One oddity of the time, for a number of years, all of Pepsi-Cola's sales were actuallyadministered from a Baltimore building apparently owned by Coca-Cola, and named for its president. Within two years, Pepsi would earn $1 million for its new owner. With theresurgence came new confidence, a rarity in those days because the nation was in the earlystages of a severe economic decline that came to be known as the Great Depression.

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RIVALRY WITH COCA-COLA

According to Consumer Reports, in the 1970s, the rivalry continued to heat up the market.Pepsi conducted blind taste tests in stores, in what was called the "Pepsi Challenge". Thesetests suggested that more consumers preferred the taste of Pepsi (which is believed to havemore lemon oil, less orange oil, and uses vanillin rather than vanilla) to Coke. The sales of Pepsi started to climb, and Pepsi kicked off the "Challenge" across the nation.

In 1985, The Coca-Cola Company, amid much publicity, changed its formula. Someauthorities believe that New Coke, as the reformulated drink came to be known, was inventedspecifically in response to the Pepsi Challenge. However, a consumer backlash led to Coca-

Cola quickly introducing a modified version of the original formula (removing the expensiveHaitian lime oil and changing the sweetener to corn syrup) as Coke "Classic".

Overall, Coca-Cola continues to outsell Pepsi in almost all areas of the world. Saudi Arabia,Pakistan (Pepsi has been a dominant sponsor of the Pakistan cricket team since the 1990s).

The situation is both Coke and Pepsi are trying to gain market share in this beverage market,which is valued at over $30 billion a year (98). Just how this is done in such a competitive

market is the underlying issue. The facts are that each company is coming up with new products and ideas in order to increase their market share. The creativity and effectiveness of each company's marketing strategy will ultimately determine the winner with respect to sales, profits, and customer loyalty (98). Not only are these two companies constructing new waysto sell Coke and Pepsi, but they are also thinking of ways in which to increase market sharein other beverage categories.

Although the goal of both companies is exactly the same, the two companies rely onsomewhat different marketing strategies (98). Pepsi has always taken the lead in developingnew products, but Coke soon learned their lesson and started to do the same. Coke hiredmarketing executives with good track records (98). Coke also implemented cross training of managers so it would be more difficult for cliques to form within the company (98). On theother hand, Pepsi has always taken more risks, acted rapidly, and was always developing newadvertising ideas. Both companies have also relied on finding new markets, especially inforeign countries. In the foreign markets, Coke has been more successful than Pepsi. For example, in Eastern Europe, Pepsi has relied on a barter system that proved to fail. However,

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in certain countries that allow direct comparison, Pepsi has beat Coke. In foreign markets, both companies have followed the marketing concept by offering products that meetconsumer needs (99) in order to gain market share.

For instance, in certain countries, consumers wanted a soft drink that was low in sugar, yetdid not have a diet taste or image (99). Pepsi responded by developing Pepsi Max. Thesecompanies in trying to capture market share have relied on the development of new products.In some cases the products have been successful. However, at other times the new productshave failed. For Coke, changing their original formula and introducing it as ―New Coke was

a major failure. The new formula hurt Coke as consumers requested Classic Cokes‘ return.

Pepsi has also had its share of failures. Some of their failures included: Pepsi Light, Pepsi

Free, Pepsi AM, and Crystal Pepsi. One solution to increasing market share is to carefullyfollow consumer wants in each country. The next step is to take fast action to develop a product that meets the requirements for that particular region. Both companies cannot just sellone product; if they do they will not succeed. They have to always be creating and updatingtheir marketing plans and products. The companies must be willing to accommodate their ―target markets . Gaining market share occurs when a company stays one -step ahead of thecompetition by knowing what the consumer wants. My recommendation is to make sure the

company is always doing market research. This way they are able to get as much feedback as possible from consumers. Next, analyze this data as fast as possible, and then develop thenew product based upon this data. Once the product is developed, get it to the marketplacequickly. Time is a very critical factor. In my opinion, with all of these factors taken intoconsideration any company should give any company a good jump on market share.

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RISE I N POPUL ARI TY

During the Great Depression, Pepsi gained popularity following the introduction in 1929 of a10-ounce bottle. Initially priced at 10 cents, sales were slow, but when the price was slashedto five cents, sales increased substantially. With 12 ounces a bottle instead of the six ouncesCoca-Cola sold, Pepsi turned the price difference to its advantage with a radio advertisingcampaign, featuring the jingle "Pepsi cola hits the spot / Twelve full ounces, that's a lot /Twice as much for a nickel, too / Pepsi-Cola is the drink for you," encouraging price-watching consumers to switch to Pepsi, while obliquely referring to the Coca-Cola standardof six ounces a bottle for the price of five cents (a nickel), instead of the 12 ounces Pepsi soldat the same price. Coming at a time of economic crisis, the campaign succeeded in boostingPepsi's status. In 1936 alone 500,000,000 bottles of Pepsi were consumed. From 1936 to1938, Pepsi Cola's profits doubled.

Marketing:

In 1975, Pepsi introduced the Pepsi Challenge marketing campaign where PepsiCo set up a blind tasting between Pepsi-Cola and rival Coca-Cola. During these blind taste tests themajority of participants picked Pepsi as the better tasting of the two soft drinks. PepsiCo took great advantage of the campaign with television commercials reporting the test results to the public.

In 1996, PepsiCo launched the highly successful Pepsi Stuff marketing strategy. By 2002, thestrategy was cited by Promo Magazine as one of 16 "Ageless Wonders" that "helped redefine promotion marketing."

In 2007, PepsiCo redesigned their cans for the fourteenth time, and for the first time, includedmore than thirty different backgrounds on each can, introducing a new background everythree weeks.

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TH E DI SADVA NTAGES OF PEPSI -COL A

But we cannot consider things just on one side. Still there are some disadvantages existing inPepsi-Cola The pipe-chat 3 showed that most of the people like the package of Coca-Cola best.48% people like it. It has only 32% people prefer the package of Pepsi-Cola. So thedesign of Pepsi-Cola's package is not as attractive as Coca--cola. It still needs to be improved.We suggest that the package needs to be designed more colorful to attract people's attention.

Although in the cola market there are many competitors, Pepsi still has the opportunity toenlarge its market share because the cola in the market is quite monotonic. Most of the enduser is young people. There are still some people who do not like the taste of the cola. So we

can try to provide some other taste of cola such as adding some lemon juice. We can changethe flavor in order to meet different taste of different people.

As to the threats, all of us know that Pepsi-Cola and Coca-Cola have had the competition for about 80 years. Although Pepsi-Cola have won several times during this competition, ¢Ú themarket share of Pepsi-cola is a little bit smaller than Coca-Cola. There is another threatnowadays. Some local cola such as FeiChang and FenHuang cola have taken their feet in themarket. Their advertisement says "Chinese people drink our own cola". It is well known thatChina is a united and patriotic nation. So these words can really catch Chinese people's heart.And these local cola's flavor is more suitable for Chinese. So it can not be ignored.

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After analyzing the SWOT, we can take

Some strategies accordingly.

1) Pepsi-Cola should improve the design of the package first. As it is advertised as" thechoice of new generation", the design must be looked young and fresh. So the color should bemore sharp and attractive.

2) As the flavor and ingredients of cola in the market are similar and the most activeconsumer is the young people, we can diversify the Pepsi production to meet the differentneed of the consumers. That is customer-orientated

3) Besides the Diet cola for the ladies, we can have many other new choices. For example, wecan create a new kind of cola more suitable for children. Maybe we can add the Vitamins or some nutritious element that are necessary to children. Or we can create a new flavor likemint-cola and the cola with very light alcoholic which is more suitable for the adults.

On the whole Pepsi is multinational brand which is very famous in the world and creating itsannual income in billion dollars. Day by day Pepsi is extending its brand. The positioning of Pepsi is its quality and its popularity in the whole world. And the target market of Pepsi isalmost every person in the world not those which are under poverty line who can afford onlya single meal In the day, Pepsi has also potential customers means kids. We have seen thatevery product has its slogan which also helps it to promote because these slogans representthat product so every company tries to create an attractive slogan. Talking about Pepsislogans so Pepsi has created many slogans from very beginning when it was introduced,Pepsi has changed its slogan many times. These slogans are:

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SLOGANS

1939: "Twice as Much for a Nickel"

1940: "BIGGER BETTER"

1950: "More Bounce to the Ounce"

1950: "Any Weather is Pepsi Weather"

1957: "The Light Refreshment"

1958: "Be Sociable, Have a Pepsi"

1961: "Now It's Pepsi for Those Who Think Young"

1963: "Come Alive, You're in the Pepsi Generation".

1967: "(Taste that beats the others cold) Pepsi Pours It On".

1969: "You've got a Lot to Live; Pepsi's got a Lot to give".

1973: "Join the Pepsi people (feeling free)".

1975: "Have a Pepsi day".

1979: "Catch that Pepsi spirit". David Lucas composer

1981: "Pepsi's got your taste for life".

1983: "Pepsi Now! Take the Challenge!"

1984: "The Choice of a New Generation".

1986: "We've Got The Taste" (Commercial with Tina Turner)

1991: "Gotta Have It."/"Chill Out"

1992: "Be Young, Have Fun, Drink Pepsi"

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1995: "Nothing Else is a Pepsi".

1996: "Pepsi: There’s nothing official about it"." (During the Wills World

Cup(Cricket) held in India/Pakistan/Srilanka)

1997: "GeneratioNext"." With The Spice Girls "

1999: "Ask for More"/"The Joy of Pepsi-Cola".

2003: "It's the Cola"/"Dare for More".

2005: "Wild Thing"/"Ask For More" (With Jennifer Lopez & Beyoncé Knowles)

2007: "More Happy"/"Taste the one that's forever young". (Michael Alexander)

2008: "Every sip gets you closer".

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PRODUCTS

FOODS PepsiCo‘s foods division Frito -Lay is the leader in the branded salty snack market. All its

products are free of trans-fat and MSG. It manufacturesLay‘ s potato chips, Cheetos extrudedsnacks, Uncle Chipps and traditional snacks under the Kurkure and Lehar brands. Thecompany‘s high -fibre breakfast cereal, Quaker Oats and low-fat and roasted snack optionslike Aliva increase the number of healthy choices available to consumers.

Aliva Cheetos Kurkure Lay‘s Lehar Namkeen Quaker Oats Uncle Chipps

BEVERAGES

PepsiCo India‘s expansive portfo lio includes iconic refreshment beverages Pepsi, 7UP, Nimbooz, Mirinda, Slice and Mountain Dew, in addition to lowcalorie options such as Diet Pepsi, hydrating and nutritional beverages suchas Aquafina drinking water, isotonic sports drink Gatorade and fruit juices suchas Tropicana and Tropicana 100%.

7UP Aquafina Duke's Gatorade Mirinda Mountain Dew Nimbooz

Pepsi

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Slice Tropicana

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7UPBr and H istory

7UP, the refreshing clear drink with a natural lemon and lime flavour was created in 1929.7UP was launched in India in 1990 and its international mascot Fido Dido was used for advertising in 1992 to position the brand as a cool drink for youngsters. Fido became aninstant hit with his trendy look, laid-back attitude and unconventional take on life. During the

brand‘s early years in India, 7UP gained market leader status in the lemon lime category by

being one of the first to be nationally distributed besides being marketed as a healthier alternative to other soft drinks.

Brand Advantage For the past two years, 7UP‘s ambition as a brand has been to capture and own the lemon

refreshment territory within the clear lime category. ‗Lemon‘ has proven to be a clear and

relevant differentiator for the brand. Further, the emotional connect with the idea of upliftment through refreshment has led to an impressive payoff for the brand.

After establishing itself as ‗The Lemon Drink‘ in January 2009, 7UP has continued to build

on the theme of mood upliftment with its new tagline ‗Mood Ko Do Lemon Ka Lift‘.

Did You Know? There are many theories for the origin of the 7UP name.

According to Professor Gary Yu (UCSB) and researchers for the popular Uncle John‘s

Bathroom Reader the name is derived from the atomic mass of Lithium, 7, which wasoriginally one of the key ingredients of the drink (lithium citrate).

However, there are numerous other myths explaining the name:

Its creator named the soft drink after winning at a casino with three rolls of 7 and the letter U.

The drink was formulated withseven flavours plus the bubbles from the drink‘s carbonation

(the bubbles go up).

The original bottle contained seven ounces; its creator came up with the name while playingdice.

7UP was the seventh large commercial lemonade brand that tasted the same.

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Gatorade, the World‘s No.1 Sports Drink, was born on the field of sport! Gatorade was

launched in India in 2004 and over the years, has become an integral part of the kitbags of many leading sportspersons. Gatorade has been tried and endorsed in India by the top sports

stars and professionals, including Sachin Tendulkar, Irfan Pathan, Md. Kaif, S. SreesanthRamji Srinivasan and Javagal Srinath.{Gatorade is a brand of sports-themed beverage andfood products, built around its signature line of sports drinks. Gatorade is currentlymanufactured byPepsiCoand distributed in over 80 countries.The beverage was firstdeveloped in 1965 by researchers at theUniversity of Florida,to replenish the combination of water,carbohydrates,andelectrolytesthat the school's student-athletes lost in sweat duringrigorous athletic competitions. Thus, its name was derived from the collective nickname of the university's athletic teams, theFlorida Gators.

Originally produced and marketed byStokely-Van Camp,the Gatorade brand was purchased by theQuaker Oats Companyin 1983, which itself was bought by PepsiCo in 2001. As of 2010, Gatorade is PepsiCo‘s 4th -largestbrand, on the basis of worldwide annual retailsales. It only competes withCoca-Cola'sPoweradeandVitaminwater brands worldwide; plus,Lucozade Sportin theUnited Kingdom.Within the United States, Gatorade accountsfor approximately 75 percent market share in the sports drink category}

The Gatorade Story In the summer of 1965, a University of Florida assistant coach sat down with a team of university physicians and asked them to determine why so many of his players were beingaffected by heat and heat-related illnesses. The researchers — Dr. Robert Cade, Dr. DanaShires, Dr. H. James Free and Dr. Alejandro de Quesada — soon discovered that two keyfactors were causing the Gator players to ‗wilt‘: the fluids and electrolytes the players lost

through sweat were not being replaced, and the large amounts of carbohydrates the players‘

bodies used for energy were not being replenished. The researchers then took their findingsinto the lab, and scientifically formulated a new, precisely balanced carbohydrate-electrolyte beverage that would adequately replace the key components lost by Gator players throughsweating and exercise. They called their concoction ‗Gatorade‘.

Brand Advantage What is Gatorade?

Gatorade is an optimal mix of water, carbohydrates and essential mineral salts that getabsorbed instantly to rehydrate, replenish and refuel like no other beverage can.

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Gatorade is unlike any other Beverage or Energy Drink! Gatorade quickly restores what the body loses through sweat. Its scientific formulationinstantly helps the body restore essential minerals, salts, water and energy lost through actionand exercise. Gatorade thus helps one to stay ‗Stronger for Longer‘. It contains less than half

of the sugar that is normally found in energy drinks or soft drinks and even juices.

Did You Know? Water helps, Gatorade transforms.

Gatorade is meant for consumption in active, sporty, hot and sweaty conditions.

Gatorade is scientifically formulated and athletically proven to quench thirst.

Quick Brand Facts World‘s No. 1 Sports Drink

Launched in India in 2004

Available in 3 flavours

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MOUNTAIN DEW

Mountain Dew (stylized asMtn Dew in the United States) is a carbonatedsoft drink brand produced and owned byPepsiCo.The original formula was invented in 1940 by Tennessee

beverage bottlers Barney and Ally Hartman and was first marketed inMarion,Virginia;Knoxville, TennesseeandJohnson City, Tennesseewith the slogan "Ya-Hoo!Mountain Dew. It'll tickle yore innards."A revised formula was created by Bill Bridgforth in1958. The Mountain Dew brand and production rights were acquired by the Pepsi-Colacompany in 1964, at which point distribution expanded more widely across the United Statesand Canada.

Between the 1940s and 1980s, there was just one variety of Mountain Dew, which wascitrus-

flavored and caffeinated. Diet Mountain Dew was introduced in 1988,followed by MountainDew Red, which was introduced and subsequently discontinued in 1988.[4] While MountainDew Red was short-lived, it represented the beginning of a long-term trend of Mountain Dew being produced in different flavor variations. In 2001, a cherry flavor called Code Reddebuted. This product line extension trend has continued, with expansion into specialty,limited time production, region-specific, and retailer-specific(Taco Bell,7-Eleven)variationsof Mountain Dew.

Production was first extended to the UK in 1996, though this initial debut was short-lived asit was phased out in 1998. A similar but very different-tasting product returned to the UK under the name "Mountain Dew Energy" in 2010 and returned toIrelandin Spring 2011. Asof 2009, Mountain Dew represented a 6.7 percent share of the overall carbonated soft drinksmarket in the U.S. Its competition includes The Coca-Cola Company'sMello Yello,and Dr Pepper Snapple Group'sSun Drop;Mountain Dew accounts for 80 percent of citrussoftdrinks sold within the US.

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MIRINDA

2012 Brand Campaign Mirinda has always stood for great bold taste that unleashes uninhibited fun. Taking the promise forward, Mirinda launched two new exciting flavors- Orange Mango and OrangeMasala which appeal to the Indian palette. While Orange Mango is the perfect mix of thesweet candy taste of mango flavor and the tanginess of original Mirinda Orange; OrangeMasala tickles the taste buds with a hint of fruit masala flavor added to Mirinda Orange. Thelaunch was supported by a robust 360-degree campaign including outdoor, online and aconsumer engagement programme to bring alive the taste experience.

Brand History Mirinda is an international soft drink brand from Spain that was launched in India in 1991.The irresistible taste of Mirinda was communicated through our 1996 ‗Mirinda Men‘

campaign, the 2000 ‗Taste Pe Atka, Mirindaaaa‘ campaign and the ‗Taste Aisa Chaye

Character Fisla Jaye‘ campaign of 2003.

In 2008, the brand decided to up the ante and deliver a brand philosophy that would resonatestrongly with consumers. Consequently, Mirinda adopted a bold and vibrant colour, greatorangey taste and sparkling bubbles that encouraged one to be more carefree, spontaneousand playful and occasionally give in to an impulse of uninhibited fun. This was conveyedthrough the ‗Pagalpanti Bhi Zaroori Hai‘ campaign with Asin in 2008. In 2009, Mirinda

established orange as the core of the brandwith ‗Orange Dikha Toh Mooh Bola Mirindaaaa‘ .

Mirinda is a brand of soft drink originally created inSpain, with global distribution. Theword Mirinda means "admirable" or "wonderful" inEsperanto.It is available in fruit varieties

includingorange,grapefruit,apple,strawberry,raspberry,pineapple,pomegranate,banana,passionfruit,lemon,hibiscus,Guarana,tangerine, andgrapeflavors as well as Tamarind. A"citrus" flavour is also available in certain areas of the Middle East. It is part of a beveragearea often referred to as the flavor segment, comprising carbonated and non-carbonated fruit-flavored beverages. The orange flavor of Mirinda now represents the majority of Mirindasales worldwide following a major repositioning of the brand towards that flavor in the early1990s.

Mirinda is owned byPepsiCosince 1970[1] and is primarily commercialized outsideNorthAmerica.It competes withCoca-Cola's FantaandDr Pepper's Orange Crushor Sunkist (soft

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drink) brand, with flavour brands local to individual countries. As with most soft drinks,Mirinda is available in multiple formulations of flavour, carbonation and sweetener depending on the taste of individual markets.

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PEPSI COLA

Brand History Pepsi is a hundred-year-old brand loved by over 200 million people worldwide. The largest

single selling soft drink brand in India, Pepsi is ubiquitous on just about every socialoccasion.

Youngistaan loves it. 200 million people worldwide love it. But what has made Pepsi thesingle largest selling soft drink brand in India is actually a formula concocted a century ago ina faraway continent.

1886, the US. Caleb Bradman, a man with a plan formulated a blockbuster of a digestivedrink and decided to call it Brad‘s drin k. The potion was to become Pepsi Cola in 1898, andeventually, Pepsi in 1903.

Since its inception, Pepsi has always been at the forefront of the beverage industry and hascome up with revolutionary concepts such as Diet Pepsi, 2l bottles, recyclable plastic cola bottles and the enviable My Can.

Brand Advantage Pepsi has become a friend to youth and youth culture. Over generations, youngsters have

grown up with Pepsi and have shared an emotional connect with it unlike with any other cola brand. Be it parties, hangouts with friends, or just another day at home, a day is never complete without the fizz of Pepsi!

Pepsi has always fuelled youth passions like cricket, Bollywood, music and now football.Youth icons like MS Dhoni, Ranbir Kapoor, Didier Drogba, Virendar Sehwag, SachinTendulkar, Priyanka Chopra and Deepika Padukone have endorsed Pepsi since its launch inIndia.

Pepsi Changed the Game during the 2011 cricket world cup by challenging convention,celebrating the unorthodox and by becoming the official sponsor of everything that wasunofficial about the sport! Change the Game even as a thought has gained enormous popularity and generated tremendous buzz.

Taking the same theme forward in 2012, Pepsi changed the game yet again by taking the leadin celebrating the exciting new platform of football. Having brought the biggest internationalfootball stars and pitching them against the mighty Indian cricketers in a classic faceoff for

Pepsi – is something which only a brand like Pepsi can deliver.

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SWOT ANALYSIS OF PEPSICO

STRENGTH WEAKNESS

a) Product diversity b) Extensive distribution channelc) Corporate Social Responsibility

(CSR) projectsd) Competency in mergers and

acquisitionse) 22 brands earning more than $1 billion a year f) Successful marketing and

advertisingg) campaignsh) Complementary product salesi) Proactive and progressive

a) Overdependence on Wal-Mart b) Low pricingc) Questionable practices (using tap

water d) but labeling it as mountain spring

water)e) Much weaker brand awareness andf) market share in the world beverageg) market compared to Coca-Colah) Too low net profit margin

OPPOURTUNITIES THREATS

a) Growing beverages and snacks b) consumption in emerging marketsc) (especially BALAJI )d) Increasing demand for healthy food

and beveragese) Further expansion through

acquisitionsf) Bottled water consumption growthg) Savoury snacks consumption

growth

a) Changes in consumer tastes b) Water scarcityc) Decreasing gross profit margind) Legal requirements to disclose

negative information on productlabels

e) Strong dollar f) Increased competition from

COCO-COLA

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Strengths

1.Product diversity . PepsiCo has several hundreds of brands, which include: carbonated andnoncarbonated drinks, water, savory and whole grain-based snacks. Product diversification

strengthens PepsiCo because it doesn‘t have to rely on few key products or seasonal sales andisn‘t significantly affected by changes in customer tastes. 2. Extensive distribution channel . PepsiCo products areserved to more than 10 millionstores per week in more than 200 countries.3. CSR . The firm recognizes its role in a society and engages in education, recycling, water usage reduction, obesity fighting and other projects through PepsiCo Foundation, thusincreasing its brand awareness and customer loyalty.4. Competency in mergers and acquisitions . The key to PepsiCo growth is its successfulmergers and acquisitions of beverage, bottling and snacks companies. PepsiCo acquired such brands as Gatorade, Tropicana, Doritos, Quaker Oats and many others.5. 22 brands earning more than $1 billion a year . The company doesn‘t have to rely on one or two of its product to bring most of the revenues. Instead, Pepsi has 22 brands thatcontribute significantly to its income, serving different industries and satisfying variousconsumer tastes.6. Successful marketing and advertising campaigns .More than $2 billion spent onadvertising over 2012 resulted in PepsiCo‘s growing market share over its main competitors, including Coca Cola Company, which spent even more on advertising.7. Complementary product sales . In its annual financial report, PepsiCo revealed one of itsstudies results that about 30% of customers who buy its snacks also buy its beverages.PepsiCo‘s decision to diversify its product range is firm‘s competitive advantage too. 8. Proactive and progressive . According to New York Times food industry writer MelanieWarner, PepsiCo, by many critics, is considered to be most proactive and progressive food

company.

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Weaknesses

1. Overdependence on Wal-Mart . More than 13% of PepsiCo revenues come from Wal-Mart store chain. Wal-Mart has a significant buyer power and can easily dictate prices over

PepsiCo leaving it with very small margins. In addition, if PepsiCo would lose Wal-Mart itwould lose 13% of its revenue and competitive advantage.2. Low pricing . PepsiCo usually prices its products lower than its competitors. Low price isassociated with low quality and PepsiCo products are usually perceived as ones.3. Questionable practices . PepsiCo is using and selling tap water but places view of mountains on its water bottle labels, thus deceiving people that it is mountain spring water when it is not. PepsiCo has also been criticized for using water in India with higher thanallowed amount of pesticides in it.4. Weak brand awareness . The Coca Cola has the largest share market of beverages in theworld and much stronger brand awareness than Pepsi, placing it at competitive disadvantage.5. Too low net profit margin . PepsiCo‘s net profit margin is 9.7% compared to Coca Cola‘s 18.55% and Nestlé‘s 11%.

Opportunities

1. Growing beverages and snacks consumption in emerging markets . PepsiCo has madelarge investments in BRIC countries to expand its market share as these countries representthe fastest growing food and beverages markets in the world. If PepsiCo is successful it willincrease its revenues and global market share significantly. In addition, it will be able to relyless on US market.2. Increasing demand for healthy food and beverages . Due to many programs to fightobesity, demand for healthy food and beverages has increased drastically. PepsiCo has anopportunity to further expand its product range with beverages and snacks that have lowamount of sugar and calories.3. Further expansion through acquisitions . So far, PepsiCo has been successful inacquiring other companies and adding new growing brands to its portfolio.4. Bottled water consumption growth . Consumption of bottled water is expected to grow

both in US (PepsiCo‘s largest bottled water market) and the rest of the world. 5. Savory snacks consumption growth . The same opportunity PepsiCo has in growing itsrevenue selling snacks as this market is also expected to grow.

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Threats

1. Changes in consumer tastes . Consumers around the world become more health consciousand reduce their consumption of carbonated drinks, drinks that have large amounts of sugar,

calories and fat.2. Water scarcity . Water is becoming scarcer around the world and increases in both costand criticism for PepsiCo over the large amounts of water used for production.3. Decreasing gross profit margin . PepsiCo‘s gross profit margin was decreasing over the past few years and may continue to decrease due to higher water and other raw material costs.4. Legal requirements to disclose negative information on product labels . Someresearches show that particular ingredients, consumed in extra large quantities, in some of PepsiCo products could cause cancer. For this reason, many governments consider to passlegislation that requires disclosing such information on product labels. Products containingsuch information may be perceived negatively and lose its customers.5. Strong dollar . More than 50% of PepsiCo‘s income is from outside US. Due to strong dollar performance against other currencies PepsiCo‘s income should fall. 6. Increased competition from Snyder’ s. Snyder‘s increase its US savory snacks market share by 1.6% and almost all of it was taken from PepsiCo.

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REASERCH METHODOLOGY

Research in common refers to a search of knowledge. It can also be defined as a systematizedeffort to gain new knowledge. Research is, thus, an original contribution to the existing stock of knowledge making for its advancement. It is the pursuit of truth with the help of studyobservation, comparison & experiment. Research methodology minimized the degree of uncertainly involved in the management decisions. Research lays the structure for decision-marketing.

Type of Research

Descriptive Research : Descriptive research includes surveys and fact-finding enquiries of different kinds. The major purpose of descriptive research is description of the state of affairsas it exists at present.

In the survey descriptive research process was carried out to describe the marketcharacteristics, consumer profiles, distribution strategies, and market potential.

Data Source:

During project study the researcher had used both primary as well as secondary data source.For primary data collection researcher visited various retailers in Kota & for secondary datahe went through Books, Journals & Internet. The information collected is relevant, correct &unbiased.

Research Design:

A research design is the arrangement of conditions for collection and analysis of data in amanner that aims to combine relevance to the research purpose with economy in procedure. Itis the conceptual structure within which research is conducted; it constitutes the blueprint for the collection, measurement and analysis of data.

Objective of the study

The researcher followed survey technique for collecting the data. Here, the researcher carriedout information from retailers, have carefully selected the instrument & methods of surveyingas the researcher have chosen personal contact methods because of higher response rate &meaningful responses this helped him to get the general feedback.

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FINDINGS

75%

25%

Do you Drink Cold Drinks?

yes No

60%

40%

Are you aware of different players in soft drink market?

Yes No

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70%

30%

Do you have any particular preference incoldrinks? If yes name them ?

Yes No

65%

10%

25%

How do you come to know about pepsi?

TV add

Hoardings

Others

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60%

40%

Are you attracted by diplay items of pepsicostore?

Yes

No

25%

10%

20%

45%

what attracts the things which attracts You tobuy pepsico products , when you go to shop?

pure racks

Pur visi coolers

Huge Poster

Display in the shelves or counters

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25%

75%

Does the easy visibility of display items&Product make you go for impulse buying

Yes

No

50%50%

Wil you change your preference If Price of pepsico Products increases ?

Yes

No

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65%

35%

Do you think that these promotionalactivities help in affecting consumer?

Yes No

60%

40%

Are the schemes given by pepsico alsoaffecting the buying decision of customer?

Yes No

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SUGGESTION

In reference to my research I came to find out that different

products in same brand helps in buying decision.

Recommendations on the basis of customer are: 1. Different Schemes should be introduced by which their sale will

increase.

2. Some Gifts should be given to the consumers on the base of

lucky draw system.

3. The replacement of the defective bottles should be doneeffectively on the time.

4. They regularly check the stock of retailers.

5. If the company want to increase the sales in off season shouldincrease the more and more schemes in comparison to other beverages

6. There should be a get together and General Meeting between allthe company employees and retailers every Quarter.

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CONCLUSION

In reference to my topic of project―The impact of Pepsico on the

consumer buying behavior I come to know that Pepsi is a well-known brand name and customers prefer it Because of the impulse type of naturethe products plays an important role. The company timely provides theracks, posters, visi-coolers and the other items which support to do proper merchandising. There is a tag line is very popular in cold drink industry,―JO DIKHTA HAI VO BIKTA HAI”.

A BOTTLE LOSS TO COKE IS A GAIN TO PEPSI: - Thecompetition is so strong between the two companies i.e. fighting is on for each bottle that is to be sold in the market. Competitive bidding goes onfor each & every prestigious outlet in their region. Monopolizing entries& fat foods joint s is their first priority.

A BOTTLE THAT IS CHILLED IS SOLD: - In the industry it is

considered that a bottle is chilled or putting in cooling compartment issold. That is the reason the policy providing triage‘s come up because

according to the contract the shopkeeper has tokeep only & only Pepsi‘s

products in the visicooler. So now the company is focusing more on it to reap the profit.