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Pepsi Versus Coca-Cola Versus RC-Cola

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Pepsi Versus Coca-Cola Versus RC-Cola 2012 RESEARCH PAPER A Comparative Analysis of the Customer’s Perception on Carbonated Drinks: Pepsi versus Coca-Cola versus RC-Cola Neeru Mundra*, Karishma Gulati** and Ruchi Gupta*** Abstract This is an extensive research of the consumer perception of the cola drinks (Pepsi, Coca-Cola and RC Cola) and the Market Potential of Coca-Cola, Pepsi and RC Cola. It covers an extensive survey and depicts all graphs, facts and figures of two companies. It begins with the introduction of carbonated drinks and introduction of these companies. These companies have interests in various sectors and they provide consistent quality products to meet customer’s requirement worldwide. This paper clearly mentions the objective of the study and the research methodology utilised for the study. The data collection method used is structured, non-disguised questionnaire in which the types of questions used are open ended, and multiple choice and close ended. The paper contains a detailed view of the tasks, which has been undertaken to analyse the market of COLAs. Various sets of questions have been prepared to know the preferences of consumers about these COLAS. The research areas are Delhi and NCR. In this study, researcher found that most of the consumers prefer Pepsi as their 1st preference and then Coca-Cola, but the low income group people prefers RC Cola. Besides, this it also studies the customer feedback about the Coca Cola, Pepsi and RC Cola. Thus, it can be said that the broad goal of the research “To study the consumers’ preference for cola” as a whole. The research work was done through the collection of primary data and secondary data by questionnaire through the market survey technique. Thus, based on the research, conclusions and suggestions have been made to make the performance of COLA better. Objectives of the Research Paper are to conduct comparative analysis of the perception of customers about various COLA DRINKS (Coca-Cola Vs Pepsi Vs RC Cola), to identify the most preferred COLA DRINK among the consumers, to identify the factors affecting the purchase decision of COLA DRINKS and to identify the type of advertising strategy majorly influencing the customers’ buying behavior with a special focus on deriving the relationship between the celebrity endorsements and buying behavior of consumer. Introduction country because it not only contributes to export The Carbonated Drinks Industry in India: A earnings of the country but acts as a revenue driver for other industries such as glass, refrigeration, Perspective transport, paper and sugar. This segment is univer- The Indian carbonated industry is worth Rs 60-bil- sal in its demand, catering to all income groups and lion and growing now at 5% annually with a age-brackets. compound annual growth rate of 4.5% where Coke The battle between two Cola giants, Coke & Pepsi, and Pepsi have a combined market share of around did not go any slow. Rather it has become fiercer. 95% directly or through franchisees. Surprisingly, They are now fighting with each other even at the in 2010 the growth of Carbonated Soft Drinks local level. The 50-bn-rupee soft drink industry is declined due to the entry of Non carbonated alterna- growing now at 6 to 7% annually. In India, Coke tives in many markets around the world. Moreover, and Pepsi have a combined market share of around the Aerated Beverages is an important sector in the 95% directly or through franchisees. Campa Cola * She pursued her Ph.D and ** She is pursuing her *** She is pursuing her Masters of Engineering (ITEB) Ph.D in Managementfrom Ph.D. in Management from Birla Institute of Technol- DTU (formerly known from BanasthaliVidyapith. ogy & Science, (BITS) Pilani, as Delhi College of En- She has done her Masters Rajasthan and approved PhD gineering). She is NET in Business Administra- Guide of Modi Institute of (Management) qualified tion with First Division Technology. She has more and has done her Mas- from Jaipuria Institute of than ten years of experience in ters in Business Admin- Management, Lucknow. academia. She has conducted istrationfrom BCIPS and She also holds the degree various training programs for holds the degree of BE in of MCom, BCom from Corporate like Wipro, State CSE from BMIET, MDU Lucknow University. She Bank of India, Hindustan Zinc Rohtak. She has more than is having experience of 3 Ltd, Canara Bank, Bank of Rajasthan, Bengal Ambuja Cement two years of experience in academia. She has pub- years in academia as a Teaching Assistant in IIM Luc- etc. She has attended various seminars and workshops. She has lished research papers in various Management Jour- know. Her area of interests are Marketing Manage- published papers in various Management Journal of Interna- nal of International and National repute. She has also ment, Retail Management and General Management tional and National repute. She has also published a book titled attended various seminars and workshops, related to etc. She has authored various research papers which “Introduction to Information Technology” by Himalaya Pub- SPSS. E-mail: [email protected] have been published in various Management Journal lishing House. She was also an Editor of Journal of Practicing of International and National repute. E-mail: mahesh- Managers. E-mail: [email protected] [email protected] Copyright by the MAEER’s MIT School of Management - Post Graduate Research Centre. All Rights Reserved. 1 MITSOM PGRC KJIMRP Vol. III - Issue 02 September - December has a 1% share, and the rest is divided amongst the 2001-02 262 local players. According to the Industry watchers, fake products also account for a good share of the 2002-03 279 balance. There are about 110 soft drinks produc- ing units (60% being owned by Indian bottlers) 2003-04 291 in the country, employing about 125,000 people. 2004-05 310 There are two distinct segments of the market, Cola and Non-Cola drinks. The Cola segment claims a 2005-06 330 share of 62%, while the Non-Cola segment includes soda, clear lime, cloudy lime and drinks with orange 2006-07 359 and mango flavours. The per capita consumption of 2007-08 373 soft drinks in India is around 5 to 6 bottles (same as Nepal’s) compared to Pakistan’s 17 bottles, Sri 2008-09 388 Lanka’s 21, Thailand’s 73, the Philippines 173 2009-10 403 and Mexico 605. The industry contributes over Rs 12 bn to the exchequer and exports goods worth 2014-15 479 Rs 2 bn. It may be recalled that Coca-Cola, the world’s number one player, was present in India for a long time in collaboration with an Indian producer but was thrown out in the late 1970s. It Market Growth Rates reappeared in India following the economic liber- alisation era - but after its rival, world’s number 1990-91 - 1996-97 9.4% two, had already entered in a big way following a long and tough fight against the opposition from the 1996-97 - 2001-02 7.8% domestic producers. When Coca-Cola re-entered, it installed a new milestone. It can also be depicted 2001-02 - 2006-07 6.5% through this data also: 2004-05 - 2009-10 5.4% Aerated Soft Drinks 2009-10 - 2014-15 3.5% Demand: Past & Future Sensitivity Coefficient 5.2% Year mn cases 1990-91 105 1991-92 115 Market Segmentation 1992-93 125 Segment Share (%) 1993-94 135 1994-95 150 North 24 1995-96 165 East 18 1996-97 180 West 32 1997-98 194 South 26 1998-99 209 1999-00 225 Rural 30 2000-01 243 Urban 70 2 2012 A Comparative Analysis of the Customer’s Perception on Carbonated Drinks: Pepsi versus Coca-Cola versus RC-Cola Market Structure ment and highlights the importance of adopting a “sensory marketing approach,” said the research- Product Variation ers from French research organisation Adriant, the Company Share (%) University of Rennes 1, DANONE R&D, and Insti- tute Paul Bocuse. “Companies need to continuously Cola Drinks: innovate to maintain market leadership,” wrote the Thums Up 29 researchers. “When the market is overloaded the challenge consists in creating innovative products Coca Cola 25 able to attract and satisfy consumers.” “This exper- Pepsi 18 iment showed the feasibility of the proposed multi- sensory design method based on mixed qualita- Source: Food & Beverages Industry Report tive and quantitative approaches.” The study also demonstrates the importance of flavour and colour Literature Review selection for new products. The global flavours A Study of Factors Responsible for Brand Pref- market was been valued at some US$18 bn in 2006 erence in FMCG Sector (Business Insights). Meanwhile, the value of the The purpose of this paper is the study of factors international colouring market was estimated at responsible for brand preference in FMCG products, around $1.15 bn in 2007 (€731m), up 2.5 per cent increasing competition, more due to globalisation, is from $1.07 bn (680m) in 2004, according to Leath- erhead Food International (LFI). Natural colours motivating many companies to base their strategies now make up 31 per cent of the colouring market, almost entirely on building brands. Brand prefer- compared with 40 per cent for synthetics, accord- ence means to compare the different brands and opt ing to LFI. for the most preferred brand. This brand preference is influenced by various factors. According to this study many factors were find out for preferring a brand like Bombarding the Senses By choosing to formulate a new beverage, the • Brand persona researchers noted that the new product would • Brand constancy need to be differentiated by improving the sensory • Brand loftiness characteristics. Four factors were identified for the • Brand value formulation: four colour intensities, three flavour- ings, two label types (soft versus hard), and two In the identification of factors affecting the brand pack sizes (standard versus oversize).
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