A Project Report on Market Analisyes for Positioning Of

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

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:

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

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.

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.

: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. In 2008 Nooyi was named one of America’s Best leaders by U.S. new & world report. In 2008 she was elected to the fellowship of the American Academy of arts and Sciences. In January 2008, Nooyi was elected chairwomen of the US – India Business council. Nooyi leads USIBC’S Boards of DIRECTORS, an assembly of more than 60 senior executive representing a cross –section of American Industry.

Indra Noyi has been named 2009 Ceo of the Year by Global supply chain Leaders Group. In 2009, Nooyi was considered one of “The TOPGUN Ceos’ ny Brendan wood international, an advisory agency. In 2010 She was named 1 on 11

Awarding Year Name organization Fortune’s list the “50 most powerful Wake Forest th 2011 Honorary Doctor of Laws women and 6 on University. forbes list of the World’s 100 most University of 2011 Honorary Doctor of Laws powerful women” Warwick. After five years on Honorary Doctorate of top , PepsiCo ‘s 2011 Miami University. Law Indian American chairman and CEO Honorary Doctorate of Pennsylvania State Indra Nooyi has 2010 Humane Letters University. been pushed to the second spot as most 2009 Honorary Degree Duke University. powerful women in US business by 2009 Barnard Medal of Honor Barnard College. Krafats CEO.

New York 2008 Honorary Degree University. 12

2007 Padma Bhushan President of India.

2004 Honorary Doctor of Laws Babson College.

Memberships and Associations

Indra Nooyi is a successor fellow of to Yale corporation she serves as a member of the foundation boards of the World Ecnomic Forum . International Rescue committee catalyst and the Lincoln Center for the performing Arts. She is also a member of the Boards of trustees of Eisenhower Fellowships. And has served as chairperson of US India business Council.

Indra Nooyi serves as an Honorary Co-Chair for the World Justice Project. The World Justice Project works to lead a global, multidisciplinary effort to strengthen the Rule of Law for the development of communities of opportunity and equity.

History Pepsi & Coke

Pepsi-Cola was founded in 1904 by Caleb Bradham, the inventor of the now popular carbonated drink. In six short years later, there were almost three hundred bottlers in three states alone. By 1923, the company went bankrupt after sugar prices skyrocketed. In 1931, Charles Guth’s Loft Candy Company bought the company. The new owners doubled the previous six ounce bottle size for the same five cent price. Profits increased drastically and the search for new bottlers to join the franchise began. Within twenty years, efficiency nearly doubled in matters of production so Pepsi began building new plants. The 1970s further increased productivity by using light weight plastic to produce bottles more efficiently. As the 1980s went on, Pepsi focused on increasing the amount of franchises it owns, which gave a total of eighty by the end of the eighties. During the twentieth century, Pepsi began expanding their company internationally; those profits brought in less than ten percent of their total. Pepsi’s different bottlers have finally merged by 1997 and separated into bottling and marketing divisions in the next year. Pepsi Bottling Group earned the right to sell, manufacture, and distributes Pepsi products internationally, specifically to Turkey. This cost one hundred million dollars. Finally in 2006, Pepsi Bottling Group became a joint manufacturer with sixteen regional bottlers and called them Pepsi Northwest Beverages.

Nature of Business:

The Pepsi Bottling Group manufactures, distributes, and delivers its wide- variety of bottled drinks. Between Canada and the United States, seventy- five percent of the company’s sales are accounted for. After PepsiCo bought Pepsi Bottling Group, PepsiCo now owns about eighty percent of the North American bottled drink distribution centers. This transaction allows PepsiCo to be one of the biggest food and beverage companies internationally. Pepsi Bottling Group also made it possible to cut costs, increase profitability, and introduce the market with new products more quickly. In 2008, Pepsi Bottling Group expanded more rapidly than ever by purchasing JSC Lebedyansky, the number one ranked juice maker in Russia, for over a little over a billion dollars. This buyout earned Pepsi Bottling Group twenty-five percent of the international bottling business. Since its affiliated company owned the other seventy-five percent, this was a great move. One year later, Pepsi Bottling Group bought Better Beverages and Ab-Tex beverage. It now has the exclusive rights to sell its bottled beverages internationally in Canada, Spain, Greece, Russia, and Turkey as well as domestically in forty-two states plus Washington D.C. In addition to owning the Mexican Pepsi Bottler, it sells Dr Pepper for their distributer in the United States. Pepsi Bottling Group runs close to six hundred manufacturing and distribution organizations and thirty-eight thousand fleet vehicles. This is an extremely productive, profitable company.

Mission Statement “To be the world’s premier consumer products company focused on convenient foods and beverages. We seek to produce healthy financial rewards to investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in everything we do, we strive for honesty, fairness and integrity.” (Hoover’s Online)

Target Markets 1. The target market for juices, water, and (sometimes) soda: Mostly all people who are looking for a convenient drink. 2. The target markets for ready-to-drink coffee and energy drinks: Workers and college kids. 3. The target market for sports drinks: athletes

4. The target market for convenient foods (vending machine food): offices, hospitals, schools 16

5. The target markets for ready-to-eat meals/cereal: single parents, busy families, and college kids. Marketing Mix:

Product: convenience food and bottled drinks

• Bottled drinks: carbonated soft drinks, juices, teas, coffee drinks, energy drinks, and bottled waters. Some examples from each category include Pepsi, Mountain Dew, Sierra Mist, SoBe, Ocean Spray, Starbucks Double Shot, Lipton, Amp, and Aquafina. • Foods: Chips, cheese curls, pretzels, multi-grain snacks, snack mixes, popcorn, dips, granola bars, rice snacks, cookies, nuts, crackers, cereal, maple syrup, rice dinners, and heat-and-eat side dishes. Some examples from each category include Lays, Fritos, Cheetos, Rold Gold, Quaker Granola Bars, Doritos, Munchies Snack Mix, Aunt Jemima, and Rice-A- Roni. 17

Price: convenience food and bottled drinks • Bottled drinks: The range from the cheapest to the most expensive is $1.50-$6.99. This is based on current advertisements. There are many ways that drinks are sold-twenty ounce bottles, twelve packs, twenty four packs, etc. The previous range included all ways that the drinks are sold.

• Foods: Bagged Snacks-snack size: about $1; family size: about $3; Dips- about $4; Cereals-about $3-6; Rice and side dishes-about $2-5 Place: Grocery Stores, restaurants, vending machines, and concession stands nationwide. Pepsi Headquarters is located in Somers, New York. Promotion: TV commercials, products appear on TV shows and movies, newspaper and magazine advertisements, and coupons. A specific television commercial stared Britney Spears and Halle Berry, Pepsi brands have appeared in coupons in the Valley News Dispatch and the Clipper magazine. Kings family restaurants and Taco Bell serve Pepsi products in their fountain machines. 18

Marketing environment Microenvironment and the Five Forces of Competitive Position

1. Threat of New Entrants=this would effect Pepsi’s business because consumers have more options to purchase than there already are. Examples of New Entrants include RC cola and Faygo Pop. 2. Bargaining Power of Suppliers= Pepsi is already the number two bottling company, so it can push to be number one.

3. Bargaining Power of Customers= There are many, many buyers, so this does not affect Pepsi very much.

4. Threat of Substitute Products= This produces a small amount of threat only because Pepsi is already the second most profitable bottling company in the industry, so the only thing they need to worry about is the number 19

One, who produces a substitute product,. 5. Nature of Rivalry= Coca Cola industries is the number one competitor of Pepsi

Microenvironment and the sub-environments that affect companies 1. Economic: now that the United States is in a recession, almost the entire rest of the world is, too. Everyone now has less money so everyone is buying less of everything and only what is necessary. This is due to income reduction and unemployment rates.

2. Social and cultural: This has little effect on Pepsi-everyone still loves the drink no matter what their age or social class is.

3. Competitive: Coca Cola is Pepsi’s top competitor.

4. Legal: Pepsi must abide by the (Food and Drug Administration) FDA regulations.

5. Political: Pepsi is minimally affected by politics. Possibly, the government may set financial limits on the company.

6. Technological: The idea of “going green” affects Pepsi. Also, the limits on carbon emissions that are set on companies cost Pepsi more money for more efficient or “green” equipment. More money spent on capital=less profits made on selling goods.

• From the SWOT and LCVP analyses, two major things can be concluded.

• First of all, Pepsi is hurting from the recession and declining economy. Although there are still sales and profits, there is no comparison to the amounts of money it used to bring in before the recession. Prices of products rose because of the rising price of gas and products used in manufacturing. Because of this, expansion is limited in both the United States and foreign countries. • The second thing that can be concluded from the analyses is that the health food campaigns are making such an impact on consumers that sales are declining. Many Pepsi products are not healthy, so people are more reluctant than ever to buy them now. Some products are selling such as bottled water and bottles juice drinks, but these sales are not making the same profits as the less healthy drinks. Some other small things can be concluded from the analyses, too. These include less international sales and popularity is high. 21

• Overall, the most important thing that emerged from these analyses is how much the health food industry is hurting Pepsi.

Advantages:

• Wide range of/many different target markets

• Numerous amounts of brands

• Various types of products in so many different categories

• Competitive prices

• Products sold in many different establishments

• National and international sales

• Excellent advertisement

• Number two seller of bottled beverages

• Growing company

• Popular brand name; easily recognized 22

• Has partners and alliances

• Up-selling products in connection with health good craze

Disadvantages:

• New entrants into the bottled beverage and convenient food market

• Top competitor is number one seller of bottles beverages

• Recession

• Must abide by FDA regulations

• Carbon emissions limits

• Most sales are domestic, although product is sold internationally

• Soft drink sales are low because of health food promotion

• Rising resource prices

Overall Effectiveness:

Pepsi has a very effective marketing strategy. To show this, each part of the marketing strategy will be listed with the reason why it is effective: Mission Statement: Pepsi’s mission statement is firm and to the point. It stresses the company’s focus as well as the importance of their customers as well as their employees and business partners. This proves Pepsi runs a strong company and is confident in it. Target Markets: Pepsi has five different target markets. Many companies do not have this many. Since Pepsi has such an impressive amount of target markets, they have the opportunity to sell their products to so many different people. Marketing Mix: There are so many different products and brands that Pepsi sells for competitive prices. They promote sales of their products in countless different places that the product is bound to sell no matter what.

Marketing Environment: There are negative things involved towards Pepsi in this part of the marketing strategy; however the positive things overpower the negative ones indefinitely. SWOT Analysis: Pepsi’s SWOT analysis has eight strengths and opportunities and six weaknesses and threats. This shows that Pepsi is well- run and productive. LCVP Analysis: This part of the marketing strategy sums up the SWOT analysis.

As listed above, there are many things that make Pepsi’s marketing strategy so effective. Although, there are things that could be improved to make 24

Pepsi’s marketing strategy much better. These will be listed below:

New Marketing Environment: The microenvironment is not in Pepsi’s favor. An example of this is the fact that most of the world is suffering in a recession which causes people to have less money to spend on some of the things they enjoy. Also, Coca- Cola is Pepsi’s top competitor, which is a huge downfall for the sales of Pepsi’s products. Finally, the technological aspect of the marketing environment has room for improvement. There are limits on carbon monoxide emissions due to the “going green” phase the country is going through. SWOT Analysis: The weaknesses displayed in the SWOT analysis prove that Pepsi needs to focus a little more on international sales and healthier beverage and convenient food items. Also, this again mentions the recession. LCVP Analysis: The weaknesses and threats linked together create problems. These problems need to be fixed in order for Pepsi to improve their company. 25

Recommendations for Pepsi:

I feel that Pepsi does a great job with everything involved in running a multi-million dollar business. The way they promote their products is excellent as well as how the corporation is international is very effective. There are a few things that I can recommend to Pepsi:

• First of all, since most of the world is currently suffering from recession, Pepsi should strive to find cost-cutting solutions to keep both prices low and profits high. This would greatly help move Pepsi in the direction of becoming the number one selling of bottled beverages and convenient foods. That fact addresses another problem of Coca-Cola being Pepsi’s number one competitor-the top seller of bottled beverages. Pepsi should create strong advertisement campaigns and slogans to further promote the success of their products.

• While “going green” is a very beneficial movement in this economy, it is making Pepsi work harder to keep efficiency and effectiveness at its best. I would recommend to Pepsi that their company needs to find a way to keep their carbon emissions in check with federal regulations and purchase “green” equipment. Since many “green” machines are also more efficient than others, Pepsi will probably end up getting more out of their money in the long run even if it means laying out a little extra cash now. 26

• The weaknesses and threats sections of the SWOT analysis show things that Pepsi needs to improve on. I recommend that Pepsi tries to focus on international sales. Also, they should try hard to find alternatives to sugary, calorie packed drinks because so many people are watching what they eat due to the health food craze. This does not mean eliminate or reduce their ever popular carbonated drinks and packaged snacks; it merely means that creating new products that are healthier will help rise profits in this “healthy” day and age.

• Finally, resource prices are rising, causing production costs to rise as well. Pepsi must find alternatives to rising resource prices so that they can keep profits high. 27

PepsiCo Marketing Mix:

In 1965 Herman W. Lay of the Frito-Lay Company and Donald Kendall of Pepsi-Cola formed PepsiCo. In 1986 operations were combined under PepsiCo Worldwide Foods and PepsiCo Worldwide Beverages. In 2001 PepsiCo merged with Quaker Oats to form a $25 billion company. PepsiCo restructured in 2007 dividing the company into three units’ food in the US, Drinks concentrated in the US and Food and Drinks marketed abroad.

Marketing Plan of PEPSI:

Initially Pepsi was used as cough syrup in America, and sold in pharmacy. But the taste of that syrup was liked by the people and then added water and carbonation and with the passage of time it is used as a regular drink and now it is world largest soft drink brand. In beverage sector pioneer is Coca cola and Pepsi is follower. In 1909 more than 24 American States gave license to Pepsi for sale. Pepsi Cola was first introduced in 6.5 ounce bottle. Pepsi was first registered in 1932.In 1932 Pepsi Cola was introduced a big bottle of 12 ounce. In 1950, the Pepsi Cola formula was slightly changed and the sweetness and calories in Pepsi Cola were decreased. In 1957, the bottle was changed to new attractive bottle and the product line was also increased by introduction of two more products that were Teem and Marinda.

Pepsi Co. is one of the biggest and spenders in India. It is also one of the biggest global ad spenders. It has long a list of endorsers from pop star Ricky martin to file stars Shahrukh Khan, Amitabh Bacchan etc. & Crickets tars Sachin Tendulkar, V.V.S Laxman, Harbhajan Singh etc. Hindustan Thompsom Associates, the big gets advertising agency of India has the account of Pepsi Co. is known for its board cast advertising but it also spends a lot in non board cast advertising i.e. hoarding, banners, posters stickers, specialties, hangar, dealer board, glow signboards, wall painting and newspaper. The expenses on this type of advertising are made at territory run it level. LUCKNOW territory has assigned two local advertising agencies R.D. Associates and Krishna for its territorial advertising 29

PEPSI in Pakistan:

In Pakistan Pepsi distribution is indirect. Nationwide Pepsi has 67% of market share in Lahore Pepsi is always at par as compare to coke. In December, 54%share is captured by Pepsi, 49% by coke and remaining 1% by other brands. The market in Pakistan is surely conquered by Pepsi. It has proved itself to be the No.1 soft drink in Pakistan. In 1971, first plant of Pepsi was constructed in Multan, and from there after Pepsi is going higher and higher. Pepsi's greatest competitor is Coca Cola. Coca Cola is an international recognized brand. Coke’s basic strength is its brand name and Coke’s strategy is not to change the brand name and logos which are in the consumers mind. But Pepsi thinks that change is must and if a product is continuously consumed then its utility starts decreasing. Pepsi with its aggressive marketing planning and quick diversification in creating and promoting new ideas and product packaging.

COCA COLA IN PAKISTAN

The Coca-Cola Company began operating in Pakistan in 1953. Coca-Cola, Fanta and Sprite are the brands in Pakistan. The Coca-Cola System in Pakistan operates through eight bottlers, four of which are majority-owned by Coca-Cola Beverages Pakistan Limited (CCBPL). The CCBPL plants are in Karachi, Hyderabad, Sialkot, Gujranwala, Faisalabad, Rahimyar Khan, Multan and Lahore. The remaining two plants, independently owned, arei n R a w a l p i n d i a n d P e s h a w a r .

3 0

T h e C o c a C o l a S y s t e m i n P a k i s t a n s e r v e s 7 0 , 0 0 0 customers/retail outlets. The Coca-Cola System in Pakistan employs 1,800 people. During the last two years, The Coca-Cola System in Pakistan has invested over $130 million (U.S.)49 years of refreshment in Pakistan

Brand equity Brand equity is outcome that accrues to a need/want satisfier when the brand name is added on. It is the incremental contribution (Money) per year obtained by the brand in comparison to the underlying product (or service). The incremental contribution is driven by the individual customer’s Incremental choice probability for the brand in comparison to his or her choice probability for the underlying product with no brand-building efforts. The method provides what-if analysis capabilities to predict the likely impacts of alternative strategies to enhance a brand’s equity.

Brand equity is one of the more popular concepts in marketing today. It is also one of the most used terms in marketing research, and the subject of much fuzzy thinking. In fact, there are several definitions of brand equity, all of which stem from the concept of 'brand.'

A useful definition is that a brand is the sum total of all that is known, thought, felt and perceived about your company, service or product. Branding, then, is the process of making products and companies into brands -the consistent and disciplined way a company communicates a brand's essence to the public.

Consumers' response to the brand revolves around the brand's image. This makes the concept an essential input into marketing strategy since a positive, strong brand image will presumably lead to choosing a particular brand.

Achieving strong brand differentiation is absolutely fundamental to building a compelling brand relationship with customers.

Brand equity can be thought of as the differential effect of brand knowledge on consumer response to the marketing of the brand.

Fundamentally, high levels of brand awareness and a positive brand image should increase the probability of brand choice. That is the fundamental goal of managing one's brand.

Brand equity only exists as a function of consumer choice in the marketplace. And although marketing and communications efforts can create and change brand images, brand equity comes into being when a consumer chooses a product or service

EMPLOYMENT OPPORTUNITIES: Pepsi provides direct and indirect employment to person in supplying it’s raw materials, packing materials, distribution vehicles, glass bottles, plastic crates, display racks etc. And to small artisans, painting and small traders in market places activities. All the Pepsi business in India is either in Industries with backward linkages with farmers or in service industries, being highly distribution oriented. It Pepsi system operates over 1000 trucks (direct operation) 8000 three-wheeler (distributors) and at least 1000 push carts, serving over half a million outlets in India. By the year 2008 the number of outlets to be served is expected to be doubled. DEVELOPING SPORTS: Pepsi today one of the main sponsors of sports activities in India. It has continued to promote upcoming new player of Cricket, Hockey and Football. Pepsi has developed a Pepsi cricket academy, which would develop over 500 young cricket enthusiasts in next five years. Similarly Pepsi cricket coaching camp and clinic are held to coach young boys in north and south.

COMMUNITY RELATIONS:

Most of the bottling plants of Pepsi are located in backward areas, thereby giving huge employment opportunities in these areas. Pepsi as a responsible company undertakes social projects in and around the bottling plants. These include supports to the education centers. Sponsors inoculation camps, providing free health check-up, initiating sanitation, drives, promoting literacy drives and helping villages to put up bus shelter etc.

REVENUE GENERATION: It estimated that Pepsi-co and its franchises generates over Rs.500 crore (in 1977) by collection of excise duty and sales tax.

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. 34

: HISTORY OF COKE:

The Coca-Cola Company is the world's largest beverage company, largest manufacturer, distributor and marketer of non-alcoholic beverage concentrates and syrups in the world, and one of the largest corporations in the United States. The company is best known for its flagship product Coca-Cola, invented by pharmacist John Smith Pemberton in 1886. The Coca-Cola formula and brand was bought in 1889 by As a Candler who incorporated The Coca-Cola Company in 189.

Besides its namesake Coca-Cola beverage, Coca-Cola currently offers nearly 400 brands in over 200 countries or territories and serves 1.5 billion servings each day. The company operates a franchised distribution system dating back to 1889 where The Coca-Cola Company only produces syrup concentrate which is then sold to various bottlers throughout the World who hold an exclusive territory. The Coca-Cola Company is headquartered in Atlanta, Georgia. Its stock is listed on the NYSE and is part of DJIA and S&P 500. Its current president and CEO is Muhtar Kent. The Coca-Cola Company was originally established as the J. S. Pemberton Medicine Company, a Co-partnership between Dr. John Smith Pemberton and Ed Holland. The company was formed to Sell three main products: Pemberton's French Wine of Cola (later known as Coca-Cola), Pemberton's Indian Queen Hair Dye and Pemberton's Globe Flower Cough Syrup.

In 1884, the company became a stock company and the name was changed to Pemberton Chemical Company. The new president was D. D. Doe while Ed Holland became the new Vice-President Pemberton stayed on as the superintendent. Company’s factory was located at No. 107, Marietta St. Three years later, the company was again changed to Pemberton Medicine Company, another copartner ship, this time between Pemberton, A. O. Murphy, E. H. Blood worth, and J. C. Mayfield. Finally in October 1888, the company received a charter with an authorized capital of $50,000. The Charter became official on January 15, 1889. By this time, the company had expanded their Offerings to include Pemberton's Orange and Lemon Elixir.

Coca-Cola India

On August 20, 2003Mr.sanjiv Gupta, President and CEO of Coca-Cola India, sat in his office contemplating the events of the last two weeks and debating his next move. Sales had dropped by 30-40%in only two weeks on the heels of a 75% five-year growth trajectory and 25-30%year-to-date growth. Many leading clubs, retailers, restaurants, and college campuses across the country had stopped selling Coca-Cola and only six weeks into his new role as CEO, Gupta was embroiled in a crisis that threatened the momentum gained from highly successful two-year marketing campaign that had given Coca-Cola market leadership over Pepsi. 36

On August 5th, The Center for Science and Environment (CSE), an activist group in India focused on environmental sustainability issues (specifically the effects of industrialization and economic growth) issued a press release stating: "12 major cold drink brands sold in and around Delhi contain a deadly cocktail of pesticide residues" According to tests conducted by the Pollution Monitoring Laboratory (PML) of the CSE from April to August, three samples of twelve PepsiCo and Coca-Cola brands from across the city were found to contain pesticide residues surpassing global standards by 30-36 times includinglindane, DDT, malathion and chlorpyrifos (See Exhibit 2). These four pesticides were known to cause cancer, damage to the nervous and reproductive systems, birth defects, and severe disruption of the immune system. In reaction to this report, the Indian government banned Coke and Pepsi products in Parliament and state governments launched independent investigations, sending soft drink samples to labs for testing. The Coca-Cola Bottling Company (Coke) stock dipped by five Dollars on the New York Stock Exchange from $55 to $50 in the six sessions following the August 5 disclosure, as did shares of Coca-Cola Enterprises (CCA).

Pepsi and Coca-Cola called the CSE allegations “baseless” and questioned the method of testing but the CSE claimed it had followed standard procedures documented by the US

Environmental Protection Agency including Gas Chromatography and Mass Spectrometry. Pepsi’s own tests conducted at an independent laboratory showed no detectable pesticides and led Pepsi to file a petition with the high court questioning the credibility of the CSE’sclaims while Coke’s Gupta commented: “The allegation is serious and it has the potential to tarnish the image of our brands in the country. If this continues, we will consider legal recourse.”

Despite Coke and Pepsi’s early responses denying the validity of the CSE’s claims and threatening legal action, a survey conducted in Delhi a few days after the CSE announcement found that a majority of consumers believed the findings were correct and agreed with parliament’s move to ban the sale of soft drinks.

It was clear that the $1 billion Indian soft drink market was at stake and Gupta had to act.

International expansion

Coke’s first international bottling plants opened in 1906 in Canada, Cuba, and Panama. By the end of the 1920’s Coca- Cola was bottled in twenty-seven countries throughout the world and available in fifty-one more. In spite of this reach, volume was low, quality inconsistent, and effective advertising a challenge with language, culture, and government regulation all serving as barriers. Former CEO Robert Woodruff’s insistence that Coca-Cola wouldn’t “suffer the stigma of being an intrusive American product,” and instead would use local bottles, caps, machinery, trucks, and personnel contributed to Coke’s challenges as well with a lack of standard processes and training degrading quality. Coca-Cola continued working for over 80 years on Woodruff’s goal: to make Coke available wherever and whenever consumers wanted it, “in arm’s reach of desire.” The Second World War proved to be the stimulus Coca-Cola needed to build effective capabilities around the world and achieve dominant global market share. Woodruff’s patriotic commitment “that every man in uniform gets a bottle of Coca-Cola for five cents, wherever he is and at whatever cost to our company “was more than just great public relations. As a result of Coke’s status as a military supplier, Coca-Cola was exempt from sugar rationing and also received government subsidies to build bottling plants around the world to serve WWII troops. 39

Turn of the Century Growth Imperative The 1990’s brought a slowdown in sales growth for the Carbonated Soft Drink (CSD) industry in the United States, achieving only 0.2% growth by 2000 (just under 10 billion cases) in contrast to the 5-7% annual growth experienced during the 1980’s. While per capita consumption throughout the world was a fraction of the United States’, major beverage companies clearly had to look elsewhere for the growth their shareholders demanded. The Coca-Cola India no. 1-0085 looming opportunity for twenty-first century was in the world’s developing markets with their rapidly growing middle class populations.

ATUL Singh, CEO Coca Cola India elected Chairman of AMCHAM:

Mr. ATUL Singh, the President and Chief Executive Officer (CEO) of Coca-Cola. India was today unanimously elected as the Chairman of the American Chamber of Commerce (AMCHAM) in India. This was announced in the 16th annual general meeting of AMCHAM India held in the capital today. Mr. Virat Bhatia, the Managing Director of telecom biggie AT & T and Mr. Shyamal Mukherjee, Director, Price Water House Coopers (PWC) were also elected as the vice-chairman of AMCHAM India’s Board of Directors. Mr. T P Chopra, who is the president and CEO of GE India, was also elected to the board for the year The new Telecom junior minister Jyotiraditya Scandia addressed the American business during the AMCHEM AGM today. Calling for further participation of US Companies in inclusive and sustained growth of India by ensuring that every dollar invested was used for social reforms irrespective of rural – urban and income inequality divide, Mr Jyotiraditya Scindia said there was a need for India to sustain its high growth pattern over a longer period in order to maintain its economic momentum. Mr. Scindia was addressing the Annual General Meeting of American Chamber of Commerce (AMCHAM) held in the capital today. ―The country is today experiencing approximately 8% growth rate year over year. We need to ensure that the rate of growth is sustained over a longer period of time, Mr. Scindia said. Citing 41

Citing example he said that the US has witnessed 3 -3.5% sustained growth over last 100years. It is this compounded growth that has resulted in US becoming the superpower it is today. ―India should follow this strategy and ensure that the growth is sustained over a longer period and this could be possible only if economic growth travels to every nook and corner of the country.‖ Mr. Scandia said that the government was taking steps to reign in inflation which would see a dip over the next 2 -3 months. The inflation was mainly due to subprime crisis in US and the increase in fuel and food prices in the international market. Speaking on the occasion, Mr. Steven J White, US Charge d’Affairs, US Embassy said that greater market and trade access between India and US would help in accelerating the growth in the two countries. He said that increase of US investment in India by 33% during the year 2007 was a step in the right direction. It was important that similar excitement was maintained during the current year as well especially in sectors like finance, trade, energy, education, health and agriculture.

OVERVIEW ABOUT COCA-COLA

Every person who drinks a coca-cola enjoy moment of refreshment And shares an experience that millions of others have savored. All of those individual experience combined have created a worldwide phenomenon – a truly global brand. The Coca-Cola Company, nursing the global community with the world largest selling soft drinks since 1886, returned to India in 1993 after a grape of 16 years giving new thumbs up to Indian soft drink market. In the same year, the company took our ownership of the nation’s top soft drink market brands & bottling market. No wonder Our brands assumed an iconic status in mind of consumers. Coca-Cola serves in India some recalled brands across the world including name such as Coca-Cola, diet coke, Sprite, Fanta, Thums-up, Limca,Maaza & Kinely (packaged drinking water).The biz.system of coca-cola in India directly employs approximately 6,000 people, & indirectly creates employment for many more related industries throw our wash procurement , supply and distribution system. The vast Indian operations comprise 25 companies owned bottling operations &24 franchises –owned bottling operations. The apart a network of contract packers also mfg. a range of the product for company. On the distribution front, 10 tone trucks, open-bay three wheelers that can navigate the narrow alleyways of Indian cities, ensure that our product available in each corner of the country. The coca cola is responsible for the mfg. distribution & sales of product across the country. A career in coca-cola is truly one kind of experience. Come @ Coca-Cola and taste the life. It is with enjoyment.

Coca-Cola is one of the most widely used soft drink in the world. The company has very efficient and extensive distribution system in the world. There is a great variety of brands offered by Coca-cola throughout the world like Diet coke, sprite, Fanta, Rc cola, Minute made etc. you can find the Coca-cola soft drinks anywhere in every country of the world. 43

The 'Coca-Cola' brand has been adopted the strategy of global marketing. They are considering the whole world as single market place and uniform marketing strategy was being used Coca-cola for many years, but now the trend is changing and different marketing campaigns are being designed for different regions of the world. . Business decisions are made on a domestic basis to fit in with the culture and needs of the domestic community. In 1919 Coca- Cola decided it was time to go global. The Coca-Cola Company decided to take its operations beyond national boundaries and marketing research was started in central America, china and many other countries of the world.

Because of successful and efficient marketing research Coca-cola was able to produce globally in different regions of the world. Coca-cola has got such an intensive distribution and bottlers system that its products are available everywhere in the world, starting from Middle East to Australia. You can find coca cola product on every retail outlet There are many reasons why company decided to sell its product in international market. The prospect exists to sell 'Coca-Cola' worldwide, because 'Coca-Cola' is a product which can be used by everyone irrespective of age and gender, all over the world. Marketing globally demand the company to have a marketing team in line with a country's consumers so effective sales can be made and good relations with the abroad key employees can be maintained. If we look on advertising perspective of Coca-cola, advertising has created a demand for 'Coca-Cola' worldwide. However, advertising has to be in line with the domestic culture. An adapted marketing mix means adjusting the mix with the prevailing culture, geographic, economic and other differences in different countries. Different languages and cultures caused problems. 44

In addition, according to Batman, et. al, Coca-Cola’s bottling system is one of their greatest strengths. It permits them to do their business on a global scale while at the same time maintain a national approach. The bottling companies are domestically owned and operated by independent business people who are authorized to sell products of the Coca-Cola Company. Because Coke does not have complete ownership of its bottling network, its main source of revenue is the sale of concentrate to its bottlers (Batman, et. al, 1998).

Brand image is the significant factor affecting Coke’s sale. Coca-Cola’s brand name is very well known all over the world. Packaging changes have also affected sales and industry positioning, but in general, the public has tended not to be affected by new products. Coca-Cola’s bottling system also allows the company to take advantage of infinite growth opportunities around the world. This strategy gives Coke the opportunity to service a large geographic, diverse, area. (Arthur A. Thompson Jr., A. J, 2005) Now there is the threat of new vital competitors in the carbonated soft drink industry is not very extensive. The threat of substitutes, however, is a very real threat. The soft drink industry is very strong, but consumers are not necessarily married to it. Possible substitutes that continuously put pressure on both Pepsi and Coke include tea, coffee, juices, milk, and hot chocolate.

Even though Coca-Cola and Pepsi control nearly 40% of the entire beverage market, the changing health-awareness of the market could have a serious affect. Of course, both Coke and Pepsi have already diversified into these markets, allowing them to have further significant market shares. The increasing health consciousness and emphasis of healthy lifestyle not only in developed nations, but also in developing nations, have slowed down the sales of Coca- Cola’s carbonated soft drinks. In response to this health consciousness issue, the company introduced Diet Coke in 1982. Such change of consumer life style had also led to the introduction of its bottled purified water. (Murden, Terry, 2005) ‘Coca-Cola’s’ brand personality reflects the positioning of its brand. The process of positioning a brand or product is a complex managerial task and must be done over time using all the elements of the marketing mix. Positioning is in the mind of the consumer and can be described as how the product is considered by that consumer. When researching the positioning of a product, consumers are often asked how they would describe that product if it were a person. The purpose of this is to develop a character statement. This can ensure that consumers have a clear view of the brand values that make up the brand personality, just like the values and beliefs that make up a person. Many people see ‘Coca-Cola’ as a part of their daily life. 46

This similarity between the brand and the consumer leads to a high degree of loyalty and makes the purchasing decision easier. It is of a lot importance to create the right brand image that closely in lines with the consumers’ life experiences and feelings. Sponsorship is one way of building these associations (Arthur A. Thompson Jr., A. J, 2005). Through events such as ‘Coca-Cola’s’ Form and Fusion Design Awards and sporting events a brand manager can ensure that its product image is made relevant to the target audience. An element of the marketing mix that involves making aware the customers. The promotional mix will often include sales promotion, advertising, direct selling and public relations elements The progress and advancement in the field of technology in the fields of soft drink raw material, production, manufacturing, information and communication technology and logistics have great positive impacts on the operations and sales of Coca-Cola. The availability of new soft drink ingredients enables Coca-Cola to introduce new variety of its products to its existing consumers, not forgetting to attract the new consumer groups. The use of the latest information technology has made able the company to attract the new generation of soft drink consumers with the latest features of song downloading. Also the existence of company website has enabled the world to be in touch with the latest progress, promotions and offers of Coca-Cola. 47

MISSION OF COCA-COLA

To refresh the world in mind, body & sprit.

To make a difference in our product.

To inspire moments of optimism through our brand and action.

To create a value in brands & difference everywhere we engage.

To do everything differs.

Our product in each hand.

Being a global leader in beverage.

VISION OF COCA-COLA

Profit : Maximize the return of shareholder.

People : Establish a great place to work where people are inspired to theBest they can do.

Portfolio : Bringing to the world a portfolio of bevera ge brands thatAnticipate and safely people’s desire & need.

Partners : nurturing a winning network of partners & building a mutual Loyalty.

Planet : Being a responsible global citizen that makes a difference 49 50

OBJECT OF THE WORK

Consumption of soft drinks has increased tremendously in India. Every age of group like it, now days it become a household necessary item. In field of marketing many kind of surveys are conducted by Coca-Cola team time to time. This is end & last feedback for any kind of organization By the specific survey, which was conducted by Coca-Cola organization want to know about the right picture of market.

Marketing variables

1. Display items 2.Visicoolers Sales Promotion variables

1. Discount for retailers. 2. Scheme for retailers

Brand Localization Strategy: The Two India’s India A: “Life ho to aisi” “India A,” the designation Coca-Cola gave to the market segment including metropolitan areas and large towns, represented 4% of the country’s population.

This segment sought social bonding as a need and responded to aspiration messages, celebrating the benefits of their increasing social

and economic freedoms. “Life ho to aisi,” (life as it should be) was the successful and relevant tagline found in Coca- Cola’s advertising to this audience. India B: “Thanda Matlab Coca-Cola” Coca-Cola India believed that the first brand to offer communication targeted to the smaller towns would own the rural market and went after that objective with a comprehensive strategy. “India B” included small towns and rural areas, comprising the other 96% of the nation’s population. This segment’s primary need was out-of-home thirst-quenching and the soft drink category was undifferentiated in the minds of rural consumers. Additionally, within average Coke costing Rs. 10 and an average day’s wages around Rs. 100, Coke was perceived as a luxury that few could afford. 52

In an effort to make the price point of Coke within reach of this high-potential market, Coca-Cola launched the Accessibility Campaign, introducing a new 200ml bottle, smaller than the traditional 300ml bottle found in urban markets, and concurrently cutting the price in half, to Coca-Cola India no. 1-0085 Rs. 5. This pricing strategy closed the gap between Coke and basic refreshments like lemonade and tea, making soft drinks truly accessible for the first time. At the same time, Coke invested in distribution infrastructure to effectively serve a disbursed population and doubled the number of retail outlets in rural areas from 80,000 in 2001 to 160,000 in 2003,increasing market penetration from 13 to 25%.

Coke’s advertising and promotion strategy pulled the marketing plan together using local language and idiomatic expressions. “Thanda,” meaning cool/cold is also generic for cold beverages and gave “Thanda Matlab Coca-Cola” delicious multiple meanings. Literally translated to “Coke means refreshment,” the phrase directly addressed both the primary need of this segment for cold refreshment while at the same time positioning Coke as a “Thanda” or generic cold beverage just like tea, lassi, or lemonade. As a result of the Thanda campaign, Coca-Cola won Advertiser of the Year and Campaign of the Year in 2003

Rural Success Comprising 74% of the country's population, 41% of its middle class, and 58% of its disposable income, the rural market was an attractive target and it delivered results. Coke experienced 37% growth in 2003 in this segment versus the 24% growth seen in urban areas. Driven by the launch of the new Rs. 5 product, per capita consumption doubled between 2001-2003. This market accounted for 80% of India’s new Coke drinkers, 30% of 2002volume, and was expected to account for 50% of the company’s sales in 2003. 2001-2003. This market accounted for 80% of India’s new Coke drinkers, 30% of 2002volume, and was expected to account for 50% of the company’s sales in 2003.

Marketing strategy of coke:

SEGMENTATION OF MARKET

A market segment consists of a group of customers who share a similar set of needs and wants. Rather than creating the segment the marketer’s task is to identify them and decide which one to target. Leading soft drink companies Coca-Cola and Pepsi follow the similar segmentation strategy for target marketing.

MASS MARKETING

However in some of its popular product both the companies follow the mass marketing strategy. In this type of segmentation, companies target the whole market and not any particular segment of the population.

TARGETED MARKETING

Although the targeted group of the company is the whole population, they want to earn more revenue from a segment than their other revenue generator sources. For this, they recognize following bases for segmentation

GEOGRAPHICAL

REGION

Both companies treat hot countries such as Asia, Middle East and African differently in comparison to cold countries. As in tropical countries, consumption of soft drinks is 70%in summer and 30% in winter season while in EUROPEAN countries its consumption is almost uniform. So soft drink companies prefer different marketing strategies in Asian and European countries. In countries like India and Pakistan, these companies invest huge resources in the season of summers, and their target area is domestic users, restaurants, school and college canteens and even rural chaupals. While in winter season their target is mainly party users and high-income group consumers.

RURAL VS. URBAN MARKET Coca-Cola Company is one of the first global majors to have spotted the potential spin offs from the country’s rural market. Population of Rural sector is more conscious more about the price whereas Population of Urban sector is more conscious about the quality and brand name of the product. Coca cola and PepsiCo in Year 2002 bring the 200 ml bottleat Rs.5 specifically targeted at the rural sector so that soft drink can take place of the local drink like lemon, sugarcane juice and Tea etc.Both the companies Coca-Cola and PepsiCo have adopted different marketing strategy forrural and urban areas.

DEMOGRAPHIC SEGMENTATION

AGE

India is considered to be a young country i.e. average age of Indian population is less 38years. Thus targeting young generation can be a beneficial marketing strategy for soft drink companies. In fact this is the case, all the major brands like Pepsi, coca cola, and thumps up, mainly target younger generation in India. In Europe, as average population is older than Asian countries, Coca cola targeted the older generation of the population. Similarly in USA, Pepsi targeted the generation X (younger generation) as they comprises majority of the population and they positioned Pepsi in the mind of youth that Pepsi is for the youth

GENDER

Gender based segmentation is very important. As taste of male and female is different. Let’s take the example of coca cola, thumps up is promoted as masculine soft drinks while coca cola and Fanta are having light taste and mainly targeted for loving birds, ladies, and children. Same example is available in Pepsi, Miranda’ orange flavor is popular among ladies, girls, and children

COCA COLA PRODUCT

The 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…

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 the drink 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, Cola Lemon, 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 wide array 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, Bitter Lemon, Bitter Water, Blueberry Pomegranate, Club Soda, Ginger Ale, Lemon and Raspberry

Limca: This thirst-quenching beverage features a fresh, light lemon-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 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.

MANUFACTURING PROCESS: The bottling factory is having a manufacturing process comprising of water treatment, plant producing 1oo*bacterial free soft water as for specification prescribed by COKE & PEPSI. The soda sugar making unit is there to prepare sugar syrup, standard mixed percentage. There is a intermixing unit where through a semi automatic process sugar syrup. The both flavor water and CO2 is punched together resulting into the soft drinks of a particular flavor. There is a huge bottle washing machine where the market returned bottled are washed continuously in the super heated water ,chlorine and then soft chilled water.

Through the exhausted washing system the bottles are carried out of the washer with the help conveyer and automatically hundreds of bottles washed and cleaned. Bottle is led by conveyer to the filling machine unit, where the ready soft drink mixture is put in 800 bottled per minute. Simultaneously through an automatic system all the bottle is crowned with the help of crowning machine. 59

The ready to go the market bottles are then passed through aggressive inspection and collected into carats (1 carats contains 24 bottles) with the help of automatic case packer machine. After that pet containing soft drinks are sent to the warehouses and immediately the payment of the excise duty to the Govt. For packed bottle kept in the warehouses are insured and, ultimate stage of the production line is to dispatch it. The product reaches into the market through a network of distribution system.

COCA COLA & PEPSI

BOARD OF DIRECTOR MANAGING DIRECTOR DIRECTOR CEO FINANCE PLANT P.A.M H.R MANAGER MANAGER MANAGER MANAGER A/C ASSISTANT SHIFT SHIPPING H.RENGINEER COORDINATOR EXECUTIVE A/C WORKER H.R CLERK OPERATORS ASSISTANT T.D.M M.E.M M.D.M Q.C.M A.D.C SINIOR M.D.C Q.C TECHNICIAN EXECUTIVE C.E TECHNICIAN M.E CHEMIST

SOFT DRINKS INDUSTRIES IN INDIA

Soft drink is a non alcoholic beverage. It is artificially flavored and contains no fruit juice or pulp. India with population of more than 100 crore is one of the largest consumer markets in the world after china. Soft drink is a typical consumer product purchased by individuals to quench thirst and secondly for refreshment. Searching for the point of origin of Indian soft drinks I first document on Gold Spot, this was the First brand soft drinks in India. It was introduced by PARLE during later part of 40’s. Cola giant, Coca-Cola was the first foreign soft drink to be introduced in India in 1965, Coca Cola made a very good beginning and dominated the whole scheme right from the world go. It (coca-Cola) faced no competition at that time . This extraordinary success of soft drinks can be attributed to the following factor: Absence of contemporary brand. Europe image build up in the western countries proceeded the entry into India market, Indians are very found by nature of foreign goods, services etc. Due to prolonged foreign rules. Parle export Pvt. Ltd later in 1970 introduced Limca, lemony soft drinks. Before Limca introduced they had tentatively introduced cola, pepino, which they had to with draw in the face of battering confrontation with coca-cola soon. 62

India always has love and hate relationship with MNC’s which gave a significant opportunities to soft drinks industries in India when coca-cola decided to windup its operation in 1977 rather than

Bowing to the Indian government insisting on:-

Dilution of equity, as the government felt that lots of foreign currency was being wasted. Manufacturing of the top – secret concentrate in India. Disclose of the chemical composition of the essence. This left a large vacuum in the popular soft drink market, and a visa was opened to any company with the requisite, technical, marketing and organizational skills. The existence of Coca-Cola from India in 1977 accelerated the growth of several Indian soft Drinks. New soft drink in the form of Tetra pack enters the market among Frooti, Jump-In, and Tree-top Ire the prominent once. Till 1977 their equipped bottling plants and the distribution network a longing to be of no use. It took them one year to develop new formula to survive and gradually came up with Campa, Lemon, Orange and Coal in same order.

However Parle, the pioneer in the soft drinks, blazed its way to national prominence with their product ―Thumps-up‖, bearing the slogan ―Happy Days Are Here Again‖. This particular slogan helped to win over the loyalists of addicts to Coca-Cola. Soon the Indian soft drinks industries started at a phenomenal rate and all Parle products Gold-Spot, Limca and Thums Up became the brand leader in their own segment. In spite of all these the drinks market still has large gap, as claim by soft drink manufacturers. To Fill these gaps there are many soft drinks concentrate and squashes flooded the market. The Indian soft market basically offered three flavour i.e. Orange, Lemon, and Cola. In 1988, multinational company PEPSI entering the Indian market.11 years after the existence of coca-cola . It had name, fame and edge of being one of the best in the game and it also offered stiff competition too parle and coke. Now Pepsi is going all out to prove that they are the best.

DATA ANALYSIS

Soft drinks is perhaps the most hard fought product categories in India in every respect - media, events, distribution, pricing, communication, endorsements and so on... Every year it consistently emerges as one of the top 10 categories on television. We, at AdEx India, have looked at year 2003 to understand the year that was for this exceptionally competitive segment! One clear and predictable pattern in 2003 was the two clear peaks of ad spend - one during the world cup and the other during the festive time. Interestingly, while Pepsi dominated media budgets during World Cup, Coca-Cola seems to have been the dominant spender in the month of September. However, this time we at AdEx thought of dwelling on aspects of advertising in terms of strategy adopted by the different players in this category and the duration of advertising across genres on TV and press.

This paper tries to throw some light on the following aspects: - Genre wise and channel wise composition of advertising on TV Advertising strategy adopted by the aerated soft drink players on TV and press Zone wise and genre wise advertising on press Specific case: zone wise and genre wise advertising for Pepsi and Coke Channel wise and genre wise composition of advertising on TV 65

Genre wise axis on aerated drinks establishes that this category is heavily advertised on feature films, music, cricket and soaps. Major part of the advertising on Cricket can be attributed to the fact that Pepsi was the official sponsor of the Cricket World Cup 2003. However, apart from cricket. Pepsi is actively present on other types of sports such as soccer, wrestling etc.

Exhibit 1 On the other hand, 10 per cent of advertising of aerated drinks is concentrated on music channels, Channel 66

V and MTV scores over others, where Coke has a significant share

EXHIBIT 2 B ran d portfolio

Name Launched Note Picture Discontinued Coca-Cola 1886

Caffeine- F r ee C o ca- 1983 C o la

Co ca-Co la 1985 C h erry

Still available in:

Am e ri ca n S a moa, Austri a , Austr a l i a, Co ca-Co la B e l g iu m , B r a z i l , China, D e nma r k, 2001 2005 with L e m o n Fe d e r a t i on of B osnia a nd H e rz e g ovina, F in l a nd, F r a n ce , G e rm a n y , H o n g Kon g , I ce lan d , Ko r e a , L ux e mbour g , Mac a u, Mal a y s i a, Mo n g ol i a, N e t h e rl a nds, No r w a y , R e un i on, Romani a , S in g a po r e, S outh A f ri c a, S p a i n , S wit z e rl a n d , T a iw a n, T u nis i a, United K in g do m , United S t a tes, a nd W e st Ba nk- G a z a

Still available in: 2002 2005 Co ca-Co la Austri a , Austr a l i a, Chin a , G e rm a n y , Ho n g Va n illa Ko n g , S outh A f ri c a, N e w Z e a l a nd (600ml and 350 ml only) Mal a y s i a, S w e d e n 2007 It( Imp wasort erd)ei nandtro Russduced i a in June 2007 by popular demand Co ca-Co la Was only available in Japan, 2004 2007 C2 Canada, and the United State s . Co ca- Co la 2005 ilable in Belgium , Net herlands , Singapo re L i m e

Co ca- June Co la End of Was only available in New Zealand. 2005 2005 ry

Co ca- Co la 2005 Zero

C o ca- 2005 ilable in Fe d erat i o n o f B o sn ia and C o la H e r z eg o v i n a, Ger m a n y , Ita l y , M5 S p ai n , M e x i co an d Bra z il C o ca- Middle C o la 2006 of Was replaced by Vanilla Coke in June 2007 Bl a ck 200 C h er r y 7 Va n illa Only available in the United State s, Co ca- Beginnin France , Canada, Co la 2006 g of C z ech R e pub li c , S l ov a k R e p ub lic, Belk 200 8 Fe d erat i o n o f B o sn i a a n d Her z eg o v i n a, B u l g ar i a and L it hu a n ia

C o ca- 2006 ilable in Fe d erat i o n o f B o sn i a and C o la H e r z eg o v i n a , N ew Z e al an d and Citra J a p a n . C o ca- 2006 ilable in France and Belgium . C o la S ang o Co ca- Co la 2007 le in the United K ingdo m and Gibraltar Ora ng e

69 Local c o mpet it o r s

The world, some local brands do compete with Coke. In S outh a nd C e ntr a l A me r ica, Kola R ea l , known a s B i g Cola in M e x ico, is a fast growing competitor to Coca-Cola. On the French island of Co r sic a , Co r sica Cola, made by brewers of the local Pietra beer, is a growing competitor to Coca- Cola. In the F r e n c hregio n of B r e t a g ne, B r e i z h C o la is available. In Peru, In c a Kola outsells Coca- Cola. However, The Co c a - Cola Comp a n y purchased the brand in 1999. In S w e d e n, J ul m ust outsells Coca-Cola during the C h rist m a s season. [ 4 3 ] I n S c o t l a n d , the locally- produced I r n - B ru was more popular than Coca-Cola P e psi is often second to Coke in terms of sales, but outsells Coca-Cola in some localities. Around until 2005, when Coca-Cola and Diet Coke began to outpace its sales. [4 4 ] In I ndia, Coca-Cola ranked third behind the leader, Pepsi-Cola, and local drink Thums Up. However, The Co ca- Cola Comp a n y purchase d T h ums Up in 1993. [ 45 ] As of 2004, Coca-Cola held a 60.9% market-share in I ndia. T r opicola, a domestic drink, is served in Cuba instead of Coca-Cola, in which there exists a United States embargo. French brand Mec c a Cola and British brand Qibla Cola, popular in the Middle Ea s t , are a competitor to Coca-Cola. I n Tu r k e y , Cola T u r ka is a major competitor to Coca-Cola. In I r a n and also many countries of Middle East, Z a m Z a m C ola a nd P e psi Cola are major competitors to Coca-Cola. In some parts of China, F utu r e c o la or 非常可乐 can be bought. I n S loveni a , the locally-produce d Co c ktail is a major competitor to Coca-Cola, as is the inexpensive Mercator Cola, which is sold only in the country's biggest sup e rm a rk e t c h a i n ,

Me rca tor. In I s r ae l , RC Cola is an inexpensive competitor. In Ma da g a s ca r , Classic Cola, made by Tiko Group, the largest manufacturing company in the country, is a serious competitor to Coca- Cola in many regions. On the P o r tu g u e s e isla nd of Mad e ir a , L a r a njada is the top selling soft drink. In the UK Coca-Cola stated that Pepsi was not its main rival, but rather R o binson ’ s drinks.

Spo nso rship o f sp o rting ev ents

Coca-Cola was the first-ever sponsor of the O l y m p ic g a me s , at the 1928 games in Amst e rd a m and has been an Olympics sponsor ever since.[5 9] This corporate sponsorship inc luded the 1996 S um m e r O l y mp i c s hosted in Atlanta, which allowed Coca-Cola to spotlight its hometown. Since 1978 Coca- Cola has sponsored each F I F A W o r ld C up and other competitions organized by FIFA. In fact, one of the F I F A tournament trophy: F I F A W o r ld Youth C h a mp i onship from Tunis i a in 1977 to Mal a y s i a in 1997 was called "FIFA — Coca Cola Cup". [ 6 0 ] In addition, Coca-Cola sponsors the annua l Co ca- Cola 600 an d Coke Z e ro 4 0 0for the N A S CAR S p r int Cup S e ri e s at L ow e ' s Mo t or S p ee dw a y in Ch a rlotte, No r th C a rolina a nd D a y t ona I nte r n a t i on a l S p ee d w a y in Daytona, Florida. Coca-Cola has a long history of sports marketing relationships, which over the years have included Major L e a g u e B a s e b a l l , the N a t i on a l F oot b a ll L e a g u e , N a t i on a l B a sketb a ll Asso c iation and the N a t i on a l Ho c k e y L ea g u e , as well as with many teams within those leagues. Coca-Cola is the official soft drink of many c ol le g i a te f ootball teams throughout the nation. In India Coca-Cola was one of the official Sponsors of the 1996 Cricket W orld C up .

I n E n g l a nd, Coca-Cola is the ma in sponsor of The F ootball L e a g u e, a name given to the three professional divisions below the P r e m i e r L ea g ue i n footb a ll (soccer). It is also responsible for the renaming of these divisions — until the advent of Coca-Cola sponsorship, they were referred to as Divisions One, Two and Three. Since 2004, the divisions have been known as The Championship (equiv. of Division 1), League One (equiv. of Div. 2) and League 2 (equiv. of Division 3). This renaming has caused unrest amongst some fans who see it as farcical that the third tier of E n g l i sh F ootball is now called "League One." In 2005 Coca-Cola launched a competition for the 72 clubs of the football league — it was called "Win a Player". This allowed fans to place 1 vote per day for their beloved club, with 1 entry being chosen at random earning £250,000 for the club. This was repeated in 2006. The "Win A Player" competition was very controversial, as at the end of the 2 competitions, Leeds United AFC had the most votes by more than double, yet they did not win any money to spend on a new player for the club. In 2007 the competition changed to "Buy a Player". This competition allowed fans to buy a bottle of Coca-Cola Zero or Coca-Cola and submit the code on the wrapper on the Coca-Cola website {w w w . c o c a -c o l a football.co.uk}. This code could then earn anything from 50p to £100,000 for a club of their choice. This competition was favored over the old "Win A Player" competition as it allowed all clubs to win some money, instead of all the money going to one winning club.

Prod ucts an d b r and s

The Coca-Cola Company offers nearly 400 brands in over 200 countries, besides its namesake Coca-Cola beverage. This includes other varieties of Coca-Cola such as:

 D iet C o ke (introduced in 1982), which uses as p a r ta m e , a synthetic ph e n y la l a n i n e -based artif i cial sw e e t e n er in place of su g ar

 D iet C o ke C a ffei n e -F r e e

 C h erry C o k e (1985)

 D iet Cherry C o ke (1986)

 Coke with Lemon (2001)

 Diet Coke with Lemon (2001)

 Va n illa C o k e (2002)

 D iet Va n illa C o ke (2002) 



 C o ca- C o la C 2 (2004)  Coke with Lime (2004)

 Aquarius Mineral Water (2004)

 Diet Coke with Lime (2004)

 D iet C o ke S w e e t e n ed with S p le nd a (2005)

 C o ca- C o la Z ero (2005)

 C o ca- C o la Bl a ck C h e rry Va n illa (2006)

 Diet Coca-Cola Black Cherry Vanilla (2006)

 C o ca- C o la Bl ā K (2006)

 D iet C o ke P l u s (2007)  C o ca- C o la O r a ng e (2007)

B ott le rs

In general, The Coca-Cola Company (TCCC) and/or subsidiaries only produces (or produce) syrup concentrate which is then sold to various bottlers throughout the world who hold a Coca-Cola f ra n c hise. Coca- Cola bottlers, who hold territorially exclusive contracts with the company, produce finished product in cans and bottles from the concentrate in combination with filtered water and sweeteners. The bottlers then sell, distribute and merchandise the resulting Coca-Cola product to r e tail s t o re s, vending machines, restaurants and food service distributors.

One notable exception to this general relationship between TCCC and bottlers is fount a in syrups in the United States, where TCCC bypasses bottlers and is responsible for the manufacture and sale of fountain syrups directly to authorized fountain wholesalers and some fountain retailers.

In 2005, The Coca-Cola Company had equity positions in 51 unconsolidated bottling, canning and distribution operations which produced approximately 58% of volume. Significant investees include:

 36 % of Coc a - Cola E n t erprises which produces (by population) for 78% of USA, 98% of Canada and 100% of Great Britain (but not Northern Ireland), continental France and the Netherlands, Luxembourg, Belgium and Monaco. 75

40 % of Coc a - Cola F E M S A , S.A. de C.V. which produces (by population) for 48% of Mexico, 16% of Brazil, 98% of Colombia, 47% of Guatemala, 100% of Costa Rica, Ecuador, Nicaragua, Panama, Peru and Venezuela, and 30% of Argentina.

24 % of Coc a - Cola H el l e n i c B o tt l i n g Com p a n y , S.A. which produces (by population) for 67% of Italy and 100% of Armenia, Austria, Belarus, Bosnia- Herzegovina, Bulgaria, Croatia, the Czech Republic, Estonia, Greece, Hungary, Latvia, Lithuania, Macedonia, Moldova, Montenegro, Nigeria, Northern Ireland, Poland, Rep. of Ireland, Romania, Russia, Serbia, Slovakia, Slovenia, Switzerland and Ukraine.

 34% o f Coc a - Cola A ma t il limited which produces (by population) for 98% of Indonesia and100% of Australia, Indonesia, New Zealand, South Korea, Fiji and Papua New Guinea.

 20 % of Coc a - Cola I c ecap AŞ. which produces (by population) for 100% of Turkey,Kazakhstan, Azerbaijan, Kyrgyzstan, Jordan, Syria, Iraq & Turkmenistan.



 27 % of Coc a - Cola B o tt l i n g Co. which is the second largest Coca-Cola bottler in the United States. The company was incorporated in 1980, and "its predecessors have been in the soft drink manufacturing and distribution business since 1902."

SWOT ANALYSIS OF PEPSI AND COKE

STRENGTHS

Pepsi and Coke has been a complex part of world culture for a very long time. The products image is loaded with over-romanticizing and fun; this is an image many people have taken deeply to heart. Pepsi and Coke are the extremely recognizable brand, which is the greatest strength of them. Additionally there Bottling system is one of their greatest strengths. This allows them to the conduct business on a global scale while at the sometime maintain a local approach. The bottling companies are locally owned and operated by independent business people who are authorized to sell product of these cola giant. PepsiCo and Coca cola are having the largest distribution network in the world, which is also there one of the greatest strength.

WEAKNESSES

Weaknesses for any business need to be both minimized and monitored in order to effectively achieve productivity and efficiency in their business activities. Although the international sales are increases but there is getting saturation evident through testability in cola drink in USA market and moreover all over the world the customer preference for cola drink is shifting towards the healthy drink is taking place. Being addictive of cola drink is also a health problem, because drinking of carbonated soft drink daily has an effect on your body also.

OPPORTUNITIES

Brand recognition is the significant factor affecting Pepsi and Coke competitive position. Pepsi and Coke brand is known well throughout 94% of world today. As in developing countries the per head consumption of cola drink is very less which evident from taking example of India. In India per head consumption is only 6 bottles as compare to 700 bottles in USA and in Indian market only 5% of the beverage comes under packaging. So looking at these data we can that for these two giant a lot of potential is there in developing market which is now also untapped.

THREATS

Currently, the threat of new viable competitors in the carbonated soft drink industry is not very substantial. The threat of Substitute, however, is a very real threat. The soft drink industry is very strong, but consumers are not necessarily married to it. Possible substitutes that continuously put pressure on both Pepsi and Coke include tea, coffee, juice, milk and hot chocolate. Even through the Coca cola and Pepsi control nearly 40% of the entire beverage market, the changing health consciousness of the market could have a serious affect. Of course, both have already diversified into these markets, but still theseSubstitutewill remain threat to them. Consumer buying power is also represents a key threat to the Pepsi and Coke.

Packagi ng & Log o De sign

U.S. containers in 2008. Various sizes from 8-67.6 US f l o z (237 mL-2 L) shown in can, glass and plastic bottles…..

In the United States, soft drinks are sold in 2 L s , 1.5 L, 1 L, 500 ml, 8, 12, 20 and 24 U.S. fluid ounce plastic bottles, 12 U.S. fluid ounce ca ns, and short eight-ounce cans. Some Coca-Cola products can be purchased in 8 and 12 U.S. fluid ounce glass bottles. Jones Soda and Orange Crush are sold in 16 U.S. fluid ounce (1 U.S. pint) glass bottles. Cans are packaged in a variety of quantities such as six p ac k s , 12 packs and cases of 24, 36, and 360. With the advent of e n e r g y d r inks sold in eight-ounce cans in the US, some soft drinks are now sold in similarly sized cans. It is also common for carbonated soft 80

Drinks to be served as fount a in drinks in which carbonation is added to a concentrate immediately prior to serving.

I n E u rope soft drinks are typically sold in 2 L, 1.5 L, 1 L, 0.33 L plastic or 0.5 L glass bottles, aluminum cans are traditionally sized in 0.33 L, although 250 ml "slim" cans have become popular

Since the introduction of canned e n e r g y d rinks and 355 ml variants of the slim cans have been introduced by R e d B ull more recently. Cans and bottles often come in packs of six or four. Several countries have standa rd r e c y c led p ac k a g ing with a fo r f e it t ypically ranging from € 0.15 to 0.25: bottles are smelted, or cleaned and refilled; cans are crushed and sold as scrap aluminum.

In Austr a l i a , soft drinks are usually sold in 375 ml ca ns or glass or plastic bottles. Bottles are usually 390 ml, 600 ml, 1.25 L or 2 L. However, 1.5 L bottles have more recently been used by the Co ca- Cola Comp a n y .

In Canada, soft drinks are sold in cans of 236 ml (8.3 imp fl oz), 355 ml (12.5 imp fl oz), 473 ml (16.6 imp fl oz), and bottles of 591 ml (20.8 imp fl oz), 710 ml (25.0 imp fl oz), 1 L (35.2 imp fl oz), 1.89 L (67 imp fl oz), and 2 L (70.4 imp fl oz). The odd sizes are due to being the metric Near-equivalents to 8, 12, 16, 20, 24, and 64 U.S. fluid ounces. This allows bottlers to use the same- sized containers as in the U.S. market.

This is an example of a wider ph e n o menon in North America. Brands of more international soft drinks such as F a nta a nd R e d Bull are more likely to come in round-figure capacities.

In India, soft drinks are available in 200 ml and 300 ml glass bottles, 330 ml cans and 600 ml, 1.25- liter, 1.5-liter and 2-liter plastic bottles.

Logo design U.S. containers in 2008. Various sizes from 8-67.6 U. S . fl o z (237 mL-2 L) shown in can, glass and plastic bottles……

The famous Coca- Cola lo g o was created by John Pemberton's bookkeeper, F r a nk M a son R obinso n , in 1885. It was Robinson who came up with the name, and he also chose the logo’s distinctive cursive script. The t y p e fa c e used, known a s S p e n s e ri a n sc r ip t , was developed in the mid 19th century and was the dominant form of formal handwriting in the United S t a tes during that period. Robinson also played a significant role in early Coca- Cola a d v e rtis i n g . His promotional suggestions to Pemberton included giving away thousands of free drink coupons and plastering the city of Atlanta with publicity banners and str e e tc a r signs.

CON CLUSI ON

The whole research shows that there are only two companies dominating in the soft drinks market- coca-cola and Pepsi. There is neck – to- neck competition in between these companies. Coke has been adopting aggressive marketing strategies to attract customer. Once of the coke’s major competitor is yet another global leader Pepsi. To wars off the threats posed by this stringent competition of coke & Pepsi has adopted some excellent marketing strategies like

 Acquiring bottling plant as many as possible  Bottling holds the key to the distribution  Sponsoring major and local events.  Making successful product launches.  Establishing prominent brands of long term stability  Good relation with customers.  Constant touch with the market. 84

By conducting marketing research in city, Coke & Pepsi can further increase its market share. In general any company to be the market leaders, it has to analyze the market size, growth, project potential, buyer behavior, life style, purchasing behaviour & the taste of the consumers. The aggressive companies will utilize the full market opportunities.

QUESTIONNAIRE

Q1. Type of outlet

(a) General store (b) Pan shop

Q2. Which brand of soft drinks you deal in ?

(a) Coca cola (b) Pepsi

Q3. Which company’s signage you have in your outlet?

(a) Coca cola (b) Pepsi

(c)Both (d) No signage

Q4. Which company’s visi- cooler you have in your outlet ?

(a) Coca cola (b) Pepsi (a) Both (d) Mixed 86

Q5. Which company have better distribution network ?

(a) Coca cola (b) Pepsi (C) Both

Q6. Which is most preferred size of the bottle by customer ?

200ml300ml 500ml 1000ml 1500ml 2000ml

Q7. Do the customer know the difference between branded and unbranded soft drinks ?

Yes No

Q8. What type of cold drinks you are selling ?

(a) Branded (b) unbranded (c) Both 87

Q9. Major age group of customers who buy soft drinks?

(a) 5-15 (b) 15-25 (c) 35-45 (d) 45-55

Q10. What do you feel about the price of branded soft drinks ?

(a) Very high (b) High (c) Medium (d) Low (e) Reasonable

Q11. Do you feel a price reduction will increase the sales of branded soft drinks ?

(a) Yes (b) No

Q12. Which medium affect the sales most ?

a)Television (b) Magazines/News papers (c) Display (d) Wall paintings/Hoardings 88

Q13. Do you think that aggressive advertising further increase the sales volume of Pepsi?

(a) Yes (b) No (c) No reply

Q14. What kind of promotional activities affect sale mostly?

(a)Free bottle scheme (b) Prize

Q15. What is your suggestion to improve the sale?

(a) New schemes (b) Refrigeration system (c) Advertisement (d) Reduction in deposits

(e) Credit facilities

(f) Regular supply