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A PROJECT REPORT ON MARKET ANALISYES FOR POSITIONING OF PEPSI & COCA COLA IN INDIA IN PARTIAL FULFILLMENT OF BACHELOR DEGREE IN BUSINESS ADMINSTRATION 2009-2012 BY PRIYA DUBEY Guided by Prof. Mr. Pradeep Tripathi Dayanand Academy of Management Studies Kanpur 1 DATED: LETTER NO: TO WHOM IT MAY CONCERN This is certify that Ms. Priya Dubey student of Dayanand Academy of Management Studies, Kanpur, has completed her project on the topic of MARKET ANALISYES FOR POSITIONING OF PEPSI & COCA COLA IN INDIA at VARUN BEVERAGES LTD., GREATOR NOIDA has submitted her project report for the period 16/01/12 to 03/03/12 in partial fulfillment of BBA of the college for the academic year 2009- 2012. Ms. Priya Dubey, has done his project to our satisfaction. During the said training period with us we found him sincere and hard working. We wish her all the success in the future. For VARUN BEVERAGES LTD. HUMAN RESOURCES 2 DECLERATION I hereby declare that project Titled MARKET ANALISYES FOR POSITIONING OF PEPSI & COCA COLA IN INDIA is an original piece of research work carried out by me under the guidance and supervision of Prof. Mr.Pradeep Tripathi, the information has been collected from genuine & authentic sources. The work has been submitted in partial fulfillment of the requirement of BBA to our college. Place: Signature: Date: Name of the student: 3 ACKNOWLEDGEMENT It gives me great pleasure and satisfaction for the successful completion of this project. Every successful piece of work has many invisible helping hands with their invaluable support and inspiration. For the completion of my project report many person directly or indirectly assisted me. At first, I would like to express my sincere thanks and deep gratitude to my esteemed guide Prof. Pradeep Tripathi, for their kind initiative guidance and valuable suggestion without which the completion of this would not have been possible. I hope this report will be special interest to the marketing students, who are on look for such real life situation beyond their classroom studies. Place: Signature: Date: Name of the student: 4 TABLE OF CONTENT 1. INTRODUCTION 6 2. The Indian Beverage Market 8 3. History Pepsi & Coke 4. Overall effectiveness 24 5. New Marketing Environment 25 6. Marketing Plan of PEPSI 29 7. Market Share in INDIA 34 8. International expansion 39 9. Overview about COCA-COLA 43 10. Object of the work 51 11. Marketing strategy of coke 54 12. Coca Cola & Pepsi organization chart 61 13 Data Analyses of Indian market 65 14. Local competitor 70 15. SWOT Analysis of Pepsi & Coke 77 16. Packing & Logo design 80 17. Conclusion 84 18 Questionnaire 86 5 INTRODUCTION India with a population of more the 100 cores is potentially one of the largest consumer markets in the world. With urbanization and development of economy, tastes and interests of the people changes according to the advance nation. Marketing is about winning this new environment. It is about understanding what consumers want and supplying it more conveniently. Marketing deals with identifying and meeting human needs and social needs. One of the shortest definitions of marketing is “meeting needs profitably”. The consumer market may be identified as the market for product and services that are purchased by individuals as household for their personal consumption. Soft drinks is a typical consumer product purchased by individual primarily quench their thirst and also for refreshment. Different types of soft drinks are available in the market and more or less content of all soft drinks is same. The market of soft drinks is facing a cutthroat competition and many companies are floating in the market with their product with different brands names. Thus in a country like India where more than 50% of total population exists below poverty Line, the consumer cannot afford such high price for soft drinks. As a result the trading Activities of the soft drinks industry are concentrated in and around big cities and town where the purchasing power of population is considered comparatively high. 6 Soft drinks industry in India has an annual sale of about 4000crores, with per capita Consumption of soft drinks at a low of seven bottle per annum (even Pakistan has a per capita Consumption of 14; in china and U.S.A is more than 900 bottles) is due to price factor. The marketing manager is responsible for both determining and suitability of goods and services in the market to give maximum satisfaction to the consumer. In order to provide maximum satisfaction, the manager need to know, what is the satisfaction level of the consumer i.e. what is their expectation from the products etc. In order to meet above requirements marketing manager conduct marketing research. Marketing research identify market opportunities, After the completion of marketing research, the company measures and forecast the size, growth and profit potential of each market opportunity. 7 The Indian Beverage Market India’s one billion people, growing middle class, and low per capita consumption of soft drinks made it a highly contested prize in the global CSD market in the early twenty-first century. Ten percent of the country’s population lived in urban areas or large cities and drank ten bottles of soda per year while the vast remainder lived in rural areas, villages, and small towns where annual per capita consumption was less than four bottles. Coke and Pepsi dominated the market and together had a consolidated market share above 95%. While soft drinks were once considered products only for the affluent, by 2003 91% of sales were made to the lower, middle and upper middle classes. Soft drink sales in India grew 76%between 1998 and 2002, from 5,670 million bottles to over 10,000 million and were expected to grow at least 10% per year through 2012.In spite of this growth, annual per capita consumption was only 6 bottles versus 17 in Pakistan, 73 in Thailand, 173in the Philippines and 800 in the United States With its large population and low consumption, the rural market represented a significant Opportunity for penetration and a critical battleground for market dominance. In 2001, Coca-Cola recognized that to compete with traditional refreshments including lemon water, Green coconut water, fruit juices, tea, and lassies, competitive pricing was essential. In response, Coke launched a smaller bottle priced at almost 50% of the traditional package. 8 HISTORY OF PEPSI: PEPSI, company founded by CALEB D BRADHAM in 1890 at North Carolina in USA. Its CEO is ROGER ENRICO and in India Pepsi –CO. Holding its chairman MR.RAJIV BAKSHI. The head quarter of Pepsi-CO.in India is at Gurgaon. Presently it is operated in 196 countries. Pharmacist CALEB invented it to cure the disease ―DISPARSIA. It is from this word that was related to Pepsi. Soon it entered market American market as soft drink which at that time was mostly dominated by coca-cola, but soon Pepsi was able to dominate the cola market and there after It has been no looking back. Pepsi and coca-cola are engaged in ferocious cold war that has taken the whole world by storm. Pepsi stands 51 positions among the fortunate 500 companies of the world. Its total capital is approx $3000 crore and total sales annually is worth $37 crore, half of which comes from beverages and other half from the snack foods division. The beverages arm of the Pepsi co. Is Pepsi- cola Company and the snack –food company is called frin to lay Inc. The year 1998 is the centennial year of Pepsi. Its total profit in the year 1996-1997 was worth Rs.45 core approx. The total number of employees engaged in this business is 4.25 lakhs globally. 9 :INDRA NOOYI, CEO of PEPSI IN INDIA: Indra Nooyi was born in Chennai in Tamilnadu, India. She completed her schooling from holy Angelis AIHSS, Chennai. She received a bachelor’s degree in Physics, chemistry and mathematics from Madras Christian College in 1974 and a Post Graduate in Management (MBA) from Indian institute of Management Calcutta in 1976.Beginning her career in India, Nooyi held product manager positions at Johnson & Johnson and textile firm Mettur Beardsell. She was admitted to YALE SCHOOL OF MANAGEMENT in 1978 and earned a Masters degree in public and private Management. PepsiCo Executive: Nooyi joined PepsiCo in 1994 and was named president and CFO IN 2001. Nooyi has directed the company’s global strategy for more than a decade and led PepsiCo’s restructuring, including the 1997 divestiture of its restaurants into Tricon. Now known as yum! Brands. Nooyi also took the lead in the acquisition of Tropicana in 1998 and merger with Quaker oats Company. Which also brought Gatorade to PepsiCo? In 2007 she became the fifth CEO in PepsiCo’s 44 year history. According to Business week since she started as CFO in 2000, the company’s annual revenues have risen 72% while net profit more than doubled, to $ 5.6 billion 2008 10 Nooyi was named on wall street journal’s list of 50 women to within 2007 and 2008 and was listed among Time’s 100 most influential people in world in 2007 and 2008. Forbes named her the most powerful women in 2008. On the 7th of October 2010 forbes magazine ranked her the 6th most power full woman in world. Honours, Awards and International Recognition: Forbes magazine ranked Nooyi fourth on the 2008 and 2009 list of The World’s 100 most Powerful Women. Fortune magazine has named Nooyi number one on its annual ranking of most powerful women in business for 2006 , 2007, 2008, 2009, and 2010.
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