Competative study between coke vs. pepsi

SUMMER INTERNSHIP RESEARCH PROJECT
ON
“COMPETITIVE STUDY BETWEEN LEADING BRAND
COKE V/S PEPSI”

SUBMITTED TO

GLA UNIVERSITY, MATHURA
Towards Partial Fulfillment of Requirement for

Masters in Business Administration Degree

PROJECT GUIDE: SUBMITTED BY:
Mr. DARSHAN SAXENA SALIL KUMAR SHARMA
Training Manager MBA 2nd year

Agra sales & marketing services pvt. Ltd. GLA University, MATHURA

Agra

1

PREFACE

Market provides a key to gain actual success only to those brands which match best
to the current environment i.e." imperative" which can be delivered what are the
people needs and they are ready to buy at the right time without any delay. It is
perfectly true but this also depends on availability of good quality products and
excellent taste and services which further attract and add a golden opportunity for
huge sales.

This also depends on the good planning approach and provide ample opportunity
plus sufficient amount of products for sales in the coming next financial year.

This survey report introduces study of consumer‘s preferences for COLA drinks. After
going through a detail analysis of market behavior and future prospect, it may also
provide an opportunity to COCA COLA to frame a good future plan to satisfy
maximum needs of the customers and established its guiding role in the market of
Agra city in particular and throughout the country as a whole. The study report will
also provide an opportunity to delineate its market potential business areas, products
&services are to be offered by the company to the customers.

This study report also provides the various factors affecting the services. Marketing
Division of COCA COLA has to keep in mind various factors specially while preparing
a plan for marketing its product or services. Detail description along with analysis of
surveyed data is being presented in this report.

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ACKNOWLEDGEMENT

Apart from the efforts of me, the success of this project depends largely on the
encouragement and guidelines of many others. I take this opportunity to express my
gratitude to the people who have been instrumental in the successful completion of this
project.

I express my heartily respect and profound thanks to Mr. DARSHAN SAXENA Training
Manager Agra Sales & Marketing Services Pvt. Ltd for their enlightening and
meticulous guidance for the consummation and evaluating of this project.

I am also very thank full to Mr. Aniil Kumar Singh Sir (HOD) Who was in the role of my
Guide , left no stone unturned in guiding me along the course of my summer Training
Project work.

Finally, I give Special thanks to Mr. Utkal Khandelval Sir who gives their valuable
suggestion and guideline regarding summer training and project report and all my friends
for their cooperation.

SALIL KUMAR SHARMA

7

DECLARATION

I Salil Kumar Sharma declare that this project report titled “COMPETITIVE STUDY

BETWEEN LEADING BRAND COKE V/S PEPSI” is an original work done by me under

the guidance of Mr. Darshan Saxena (Training manager) AGRA SALES & MARKETING

SERVICES PVT. LTD. . I further declare that it is my original work as a part of my

academic course.

SALIL KUMAR SHARMA

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Contents

PAGE
CHAPTER NO. TITLE
NO.

i
PREFECE
ACKNOWLEDGMENT ii

DECLERATION iii

1. INTRODUCTION 1-14

1.1
2-4
INTRODUCTION ABOUT TOPIC
1.2 INTRODUCTIONS TO COMPANY 5-8

1.3 BUSINESS MODEL OF COMPANY 9

1.4 SWOT ANALYSIS 10-12

2.2 OBJECTIVE OF STUDY 13

1.5 NEED OF STUDY 14

2. 15-19
REVIEW OF LITERATURE
3. SOFT DRINK INDUSTRY 20-61

3.1 OVERVIEW: SOFT DRINK INDUSTRY 21-24

3.2 COCA-COLA 25-39

3.2.1 COCA-COLA IN INDIA 25-30

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3.2.2 MISSION AND VISION 31

3.2.3 BRANDS OF COKE 32-34

3.2.4 COKE BARDS IN INDIA 35

3.2.5 36-39

SLOGANS OF COCA-COLA
3.3 40-53

PEPSICO
3.3.1 42-46

PEPSICO IN INDIA
3.3.2 47

PEPSICO INDIA: FORTUNE 500 COMPANY
3.3.3 48

BRAND HISTORY
3.3.4 BRANDS ADVANTAGE 49

3.3.5 PEPSICO PRODUCT IN INDIA 50

3.3.6 SLOGANS OF PEPSI 51-53

3.4 THE REVELRY BEGINS 54-62

3.4.1 COKE COMES IN INDIA 54

3.4.2 MARKETING STRATEGY OF COKE AND PEPSI 55-56

3.4.3 PRODUCT COMPARISON IN INDIA 57

3.4.4 STRATEGY ADOPTED BY COKE AND PEPSI 58-59

3.4.5 CELEBRITIES INDORSED 60

3.4.6 PRICE 61

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4. RESEARCH METHODOLOGY 62-66

4.1 METHODS OF DATA COLLECTION 63-64

4.2 SAMPLING DESIGN 65

4.3 SAMPLE SIZE 66

5. DATA INTERPRETATION 67-68

6. FINDINGS & RECOMMENDATION 79-81

LIMITATIONS 82

REFERENCE 83

ANNEXURE 84-87

CHAPTER - 1

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INTRODUCTION

1. INTRODUCTION

1.1 INTRODUCTION ABOUT TOPIC

In the modern culture consumption of soft drinks particularly among younger generation
has become very popular. Soft drinks in various flavors and tastes are widely patronized
by urbane population at various occasions like dinner parties, marriages, social ge
together, birthday calibration etc. children of all ages and groups are especially attracted
by the mere mention of the word soft drinks. With the growing popularity of soft drinks, the
technology of its production, preservation, transportation and or marketing in the recent
years has witnessed phenomenal changes. The so-called competition for this product in
the market is from different other brands. Mass media, particularly the emergence of
television, has contribute to a large extent of the ever growing demand for soft drinks the
attractive jingles and sport make the large audience remember this product at all times.

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It is expected that with the sort of mass advertising, reaching almost the entire country
and offering various varieties annual demand for the product is expected to rise sharply in
the times to come.

In any marketing situation, the behavioral / environmental variables relating to consumers,
competition and environment are constantly influx. The competitors in a given industry
may be making many tactical maneuvers in market all the time. They may introduce or
initiate an aggressive promotion campaign or announce a price reduction. The marketing
man of the firm has to meet all these maneuver and care of competitive position of his
firm and his brand in the market. The only rout open to him for achieving this is the
manipulation of his marketing tactics.

In today‘s highly competitive market place, three players have dominated the industry;
The New York based Pepsi Company Inc. The Atlanta based coca- cola and U.K. based
Cadbury Schweppes. Through the globe, these major players have been battling it out for
a bigger chunk of the ever –growing soft drink market. Now this battle has been evolved
up to India too with the arrival of these three giants. Soft drink industry is on amazing
growth; ultimately these are only one person who will determine their fortunes. The Indian
consumer the real War to quench his thirst has just begun.

The soft drink industry has been a profitable one in spite of the ―cola wars‖ between the
two largest players. Several factors contribute to this profitability, and these factors also
help to show why the profitability of the concentrate production side of the industry has
been so much greater than the bottling side. Over the years the concentrate producers
have experimented with different levels of vertical integration, and although it has not
necessarily been clear which have been more successful historically, some decision
criteria can be developed to help determine if and when complete vertical integration is
necessary.
The World most popular soft drinks is on duel! Pepsi and Coca Cola, it‘s the battle
between the red can soft drinks and the blue can soft drinks! So this 2 drinks taste almost
the same, but which one of the soft drinks do you prefer?

Coke and Pepsi have rolled out many celebrities during the past 20 years, and comedian

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Dave Chapels promoted both drinks during the same year. The soft drink industry has
been a profitable one in spite of the ―cola wars‖ between the two largest players. Several
factors contribute to this profitability, and these factors also help to show why the
profitability of the concentrate production side of the industry has been so much greater
than the bottling side. Over the years the concentrate producers have experimented with
different levels of vertical integration, and although it has not necessarily been clear which
have been more successful historically, some decision criteria can be developed to help
determine if and when complete vertical integration is necessary.
The concentration in the industry (Coke and Pepsi have 73% in 1994) would suggest that
internal rivalry is somewhat less than if there were many players of equal size. Although
the competition between Coke and Pepsi has become fiercer over time, they traditionally
competed primarily on advertising, promotion and new products rather than price
(although the explosion of new brands did eventually lead to some price competition). The
products are similar but not homogeneous and buyers are fairly brand loyal. Retail buyers
have significant costs for switching from the major brands since those are responsible for
bringing people into the store. Flattening and potentially declining U.S. demand may be a
factor which increases internal rivalry and encourages more price competition and thus
erosion of profits.
The ultimate battle of two major players competing for the top spot in a massive global
market. The cola and carbonated beverage industry reaches to virtually all corners of the
planet, and the vast majority of the market share belongs to the two giants Coke and
Pepsi. With such a huge market and enormous revenue potential in an industry such as
this, it is no wonder that the Coke vs. Pepsi competition is so fierce.

Coke vs. Pepsi, nearly everyone has a preference or an opinion about which one is
better. There is really no arguing the fact that the two soft drinks are very similar in terms
of flavor. The flavor difference between them is subtle at most, so it is interesting that so
many people have such strong feelings about which one is superior.

Global market analysis on the cola industry shows that Coca Cola typically has a slight
advantage over Pepsi in market share. In some regions Pepsi is winning the war,
however overall it seems that more people are choosing Coke versus Pepsi. Looking at a

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wide range of data shows that Coca Cola owns somewhere between60-63% of the Indian
market, while Pepsi gets in the neighborhood of 30%. Of course different studies will
produce different results so it is difficult to get a truly accurate picture. The one thing that
is certain is that Coke and Pepsi continue to blow away any other form of competition.
The cola wars are truly a two horse race.

.

1.2 INTRODUCTION ABOUT COMPANY

The Coca-Cola Company exists to benefit and refresh everyone it touches.

Type Public(NYSE:KO)

Industry Beverage

Founded 1886, USA

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Coca-Cola, the product that has given the world Headquarters Atlanta, Georgia , USA
its best- known taste was born in Atlanta,
Area served Worldwide
Georgia on May 8, 1886. Coca-Cola Company
is the world‘s leading manufacturer, Marketer Key People Muhtar Kent
and distributor of non-alcoholic beverage
(Chairman and CEO)
concentrates and syrups, used to produce
nearly 400 beverage brands. The corporate Products Coca Cola
headquarters are in Atlanta, with local
Carbonated Soft Drinks
operations in over 200 countries around the
world. The Coca-Cola Company began building Water
its global network in the 1920s.Coca-Cola
Other non alcoholic
system has successfully applied a formula on a
beverages
global scale ―Provide a moment of refreshment
for small amount of money a billion times a day‖. Employees 92,400 (October 2009)

Website Coca-cola.com

When launched Coca-Cola two key ingredients
were cocaine (benzoyl methyl ecgonine) and caffeine. The cocaine was derived from the
coca leaf and the caffeine from kola nut, leading to the name Coca-Cola (the "K" in Kola
was replaced with a "C" for marketing purposes Coca-Cola often referred to simply as
Coke (a registered trademark of The Coca-Cola Company in the United States since
March 27, 1944)was invented in May 1886 by Dr. John Stith Pemberton in Atlanta,
Georgia. The name "Coca-Cola" was suggested by Dr. Pemberton's bookkeeper, Frank
Robinson. He penned the name Coca-Cola in the flowing script that is famous today.

Coca-Cola was first sold at a soda fountain in Jacob's Pharmacy in Atlanta by Willis
Venable. The first sales were at Jacob's Pharmacy in Atlanta, Georgia, on May 8, 1886. It
was initially sold as a patent medicine for five cents a glass at soda fountains, which were
popular in the United States at the time due to the belief that carbonated water was good
for the health.

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Pemberton claimed Coca-Cola cured many diseases, including morphine addiction,
dyspepsia, neurasthenia, headache, and impotence.

Pemberton ran the first advertisement for the beverage on May 29 of the same year in the
Atlanta Journal. The company was formed to sell three main products: Pemberton's
French Wine Cola (later known as Coca-Cola), Pemberton's Indian Queen Hair Dye, and
Pemberton's Globe Flower Cough Syrup.[The Coca-Cola formula and brand was bought
in 1889 by Asa Candler who incorporated The Coca-Cola Company in 1892.

In 1892 Candler incorporated a second company,
The Coca-Cola Company (the current
corporation), Coca-Cola was sold in bottles for
the first time on March 12, 1894. The first Outdoor
wall advertisement was painted in the same year
as well in Cartersville, Georgia. CAN of Coke first
appeared in 1955. On February 7, 2005, the
Coca-Cola Company announced that in the
second quarter of 2005 they planned to launch a Diet Coke product sweetened with the
artificial sweetener sucralose, the same sweetener currently used in Pepsi One. On
March 21, 2005, it announced another diet product, Coca-Cola Zero, sweetened partly
with a blend of aspartame and acesulfame potassium. On July 5, 2005, it was revealed
that Coca-Cola would resume operations in Iraq for the first time since the Arab League
boycotted the company in 1968. In India, Coca-Cola ranked third behind the leader,
Pepsi-Cola, and local drink Thums Up. The Coca-Cola Company purchased Thums Up in
1993. As of 2004, Coca-Cola held a 60.9% market-share in India.

Coca-Cola was the first commercial sponsor of the Olympic games, at the 1928 games in
Amsterdam, and has been an Olympics sponsor ever since. Special aluminum bottle
designed exclusively for the Vancouver 2010 Olympic Winter Games Torch Relay. This
corporate sponsorship included the 1996 Summer Olympics hosted in Atlanta, which
allowed Coca-Cola to spotlight its hometown.

17

Since 1978, Coca-Cola has sponsored each FIFA World Cup, and other competitions
organized by FIFA. In fact, one FIFA tournament trophy, the FIFA World Youth
Championship from Tunisia in 1977 to Malaysia in 1997, was called "FIFA — Coca Cola
Cup".

In 2010 it was announced that Coca-Cola had become the first brand to top £1 billion in
annual UK grocery sales

Ingredients

Carbonated water
Sugar (sucrose or high-fructose corn syrup depending on country of origin)
Caffeine
Phosphoric acid v. Caramel (E150d)
Natural flavorings

A Can of Coke (12 fl ounces/355ml) has 39 grams of carbohydrates (all from sugar,
approximately 10 teaspoons), 50 mg of sodium, 0 grams fat, 0 grams
potassium,140calorie.

LOGO

The famous Coca-Cola logo was created by John Pemberton's bookkeeper, Frank Mason
Robinson, in 1885. Robinson came up with the name and chose the logo's distinctive
cursive script. The typeface used, known as Spenserian script, was developed in the mid
19th century and was the dominant form of formal handwriting in the United States during
that period.

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Robinson also played a significant role in early Coca-Cola advertising. His promotional
suggestions to Pemberton included giving away thousands of free drink coupons and
plastering the city of Atlanta with publicity banners and streetcar signs.

The World’s Most Powerful Brand

Interbrain‘s Global Brand Scorecard for 2003 ranked Coca-Cola the #1 Brand in the
World, estimated its brand value at $70.45 billion .The ranking‘s methodology determined
a brand‘s valuation on the basis of how much it was likely to earn in the future, distilling
the percentage of revenues that could be credited to the brand, and assessing the
brand‘s strength to determine the risk of future earnings forecasts. Considerations
included market leadership, stability, and global reach, incorporating its ability to cross
both geographical and cultural borders.

From the beginning, Coke understood the importance of branding and the creation of a
distinct personality. Its catchy, well-liked slogans (―It‘s the real thing‖ (1942, 1969),
―Things go better with Coke‖ (1963), ―Coke is it‖ (1982), ―Can‘t beat the Feeling‖ (1987),
and a 1992 return to ―Can‘t beat the real thing‖) linked that personality to the core values
of each generation and established Coke as the authentic, relevant, and trusted
refreshment of choice across the decades and around the globe.

1.2.1 BUSINESS MODEL OF COMPANY

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1.3 SWOT ANALYSIS

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SWOT analysis is the overall evaluation of the company or an individual.

 Strength
 Weaknesses
 Opportunities
 Threats
SWOT analysis of the coca-cola company can be understood as follows:

 STRENGTHS:

 Coca-cola Company is the most famous brand name of the world.

 Coca-cola has many stars endorsing its products.

 Thumbs up is much stronger in taste compared to Pepsi.

 Maintains high quality.

 A wide range of different tastes.

 People trust coca-cola.

 Its new launched product AAM PANA which gives desi taste to Indians.

 WEAKNESSES:

 Coca-cola needs a proper planned route of operation.

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 It has very low budget for promotion and advertisement of its products.

 Its name brand coke is not much popular among people.

 Proper quality control methods are not used.

 Retailers don‘t support its low budget schemes.

 OPPORTUNITIES:

 It has a large rural market to spread its products.

 Good semi urban market.

 Can launch new traditional Indian products.

 Can launch many new schemes to defeat Pepsi from the market (like a home
delivery scheme was launched in Jaipur House area.)

 THREATS:

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 It has an intense competition with Pepsi.

 The research which is conducted by some institutes regarding pesticides in soft
drinks.

 Increase in the sales of other fruit juices or health drinks.

1.4 OBJECTIVES OF STUDY

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 To study the performance of coca cola.
 To study the preference of the people for soft drinks.
 To find out the factor(s) that influences the consumer(s) consumption of
soft drinks.
 To know which brand advertisement mostly liked by the target
customers.

1.5 NEED OF STUDY

24

The main aim of this research study is to analyze the preference of people (of different
age group) on consumption pattern of soft drink and consumer awareness about soft
drinks.

The need of the study arises because with the help of this study company can get the
information about the brand awareness, position of its brand in the market, sales and
promotion policies . So that, after understandings the customers and retailers‘ opinion
about the company helps the company to change its marketing strategies to focus on the
customers and helps to fight against the competitors. With the help of this study the
company can improve its promotion policy and increase its market share and profit.

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CHAPTER- 2

REVIEW
OF
LITERATURE

26

2. REVIEW OF LITERATURE

According to the Webster‘s dictionary, literature is ―the writings that pertains towards
particular branch of learning and printed matter and review means to examine again, to
study carefully.‖

Therefore literature review is the printed matter which we study very carefully during our
work. This project is also a collection of insight into the different printed material.

The preference for Coke versus Pepsi is not only a matter for the tongue to decide,
Samuel McClure and his colleagues have found. Brain scans of people tasting the soft
drinks reveal that knowing which drink they taste affects their preference and activates
memory-related brain regions that recall cultural influences.

The knowledge about sales and promotion principles is gained from the book ―The
principle of marketing‖ written by Philip Kotler.
There were many researches which were conducted to determine the awareness the
coca cola .In 2009 a research was conducted in Delhi region.. In this research it was
found that people were aware of coca cola more than Pepsi.( Samuel, et, al. 2004)

According to the ‘Product Insights: Soft Drinks in India’ report,

The global soft drinks market grew at a compound annual growth rate (CAGR) of 3.45%
from 2005 to 2009 and was valued at $494.5 billion in 2009. New product launches in the
global soft drinks market increased by 8.59% in 2009. The US was the top country by
retail sales as well as by number of new product launches, followed by Japan which
ranked second in both categories. Globally, India ranked 25th in terms of retail sales and
13th in terms of the number of new product launches in the soft drinks market in 2009.
In spite of India‘s huge population and the fact that around 47% of the population is
composed of persons below 30 years of age, the per-capita consumption of soft drinks in
India remains very low, at approximately at 5.2 liters against the world average of nearly

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85.22 liters. Developed countries such as the US, Germany, Italy and Spain all have per-
capita consumption in the range of 280-400 liters, showcasing the huge potential for
market growth in India. Coca-Cola remains the market leader in the carbonates category
with a market share of more than 60% in the Indian market, followed by Pepsi with around
35%. In the bottled water category, Parle‘s Bisleri and
Kinley from Coca-Cola are the leading players. The packaged juices market in India
continues to be dominated by Maaza and Frooti, followed by brands such as Slice,
Tropicana and Real which have registered good growths in their market shares in the
past few years. Red Bull with its strong dominance of the energy drinks‘ category, which
is the largest segment in the functional drinks category, is the market leader in the
functional drinks market.
Coca-Cola had built its reputation on the consumer-loving products it sells. This is why
they don‘t want its main rival, Pepsi, free-riding on that reputation. Coca-Cola made the
average glass bottle famous. Now, Pepsi just wants to take advantage of Coca-Cola‘s
goodwill and reputation just to boost its own sales. Why else would Pepsi want to sell a
similar glass bottle? Although Pepsi makes a strong case, this fact alone could destroy
Pepsi‘s chances of a victory.

2.1 A study of factors responsible for brand preference in FMCG sector.

The purpose of this paper is the study of factors responsible for brand preference in
FMCG products, increasing competition, more due to globalization, is motivating many
companies to base their strategies almost entirely on building brands. Brand preference
means to compare the different brands and opt 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:

Brand persona

Brand constancy

Brand loftiness

Brand value.

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In the identification of factors affecting the brand preference, it was concluded that brand
persona is the most effective factor that affects the brand preference. This brand persona
deals with the personality aspects or the external attributes of brand, thus it can be said
that consumer prefer any brand by looking at the external attributes of a brand.

2.2 Bombarding the senses: Study

By choosing to formulate a new beverage, the researchers noted that the new product
would need to be differentiated by improving the sensory characteristics. Four factors
were identified for the formulation: four color intensities), three flavorings, two label types
(soft versus hard), and two pack sizes (standard versus oversize). By using both
quantitative (hedonic testing) and qualitative (focus groups) approaches, the researchers
found that the main factors which drive consumer preference for this concept are color
intensity and flavoring‖. Indeed, color intensity accounted for 43 per cent and flavor 32 per
cent of the consumers‗ overall liking. ―Pack size and label type are taken into account by
the consumer to a lesser extent, they added. This methodology of a qualitative screening
associated to a conjoint analysis on relevant sensory attributes has shown good
performances to fit consumers‗ expectation: it has now to be reproduced, as e very brand,
concept and product is a unique combination designed for a specific consumer group,‖
concluded the researchers.

2.3. Taste or health: A study on consumer acceptance of cola drinks

This study examined the relative contributions of taste and health considerations on
consumer liking and purchase intent of cola drinks. Eight types of commercial cola drinks
were evaluated by 305 adult consumers who also completed a brief questionnaire on food
habits. Data were analyzed using factor analysis. Results revealed that purchase intent of
cola drinks was strongly related to degree of liking and to several key sensory attributes
including saltiness, drinks flavor and greasiness. These variables emerged as the first
factor in the analysis, suggesting that consumers perceive these characteristics as being
most important in their choice of cola drinks. Factor 2 described a health dimension and
was related to respondents' attitudes toward fat in the diet. Factor 3 comprised two

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remaining sensory attributes (color and crunchiness), which apparently were of minor
importance to the respondents. These data suggest that in spite of current concern about
reducing dietary fat, health remains secondary to taste in the selection of cola drinks for
consumers in this population.

2.4. Paired preference tests using placebo pairs and different response

Options for cola drinks, orange juices: Abstract

Preference tests were performed for varieties of cola drinks, orange juices and using
three response protocols: the traditional paired preference test with the "no preference"
option, a 9-point hedonic scale and a 6-point hybrid hedonic/purchase intent scale. The
different stimuli to be assessed were presented in pairs, but putatively identical stimuli
were also presented as a "placebo" pair. Performance on the placebo pair with identical
stimuli provided a measure of the hidden demand characteristics of the test protocol. The
presentation of the different pairs provided a measure of preference accompanied by
such hidden demand effects. Comparison between the two allowed a better measure of
preference per se. The order of presentation of the identical and different pairs did show
occasional slight evidence of contrast effects. For the placebo "identical" pairs, a majority
of consumers reported false preferences. Liking questions with the hedonic and hybrid
scales elicited fewer false preferences than preference questions with the paired
preference protocol. Yet, the effects tended to be slight. The 6-point hedonic/purchase
intent scale exhibited the fewest false preferences in the placebo condition, and this was
because of its fewer categories rather than any cognitive strategy change elicited by its
different labels.

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CHAPTER- 3

SOFT DRINK
INDUSTRY

31

3.1 SOFT DRINK INDUSTRY: AN OVERVIEW

It all began in 1886, when a tree legged brass kettle in Hohn Styth pemberton‘s backyard
in Atlanta was brewing the first P of marketing legeent Unaware the pharmacist has given
birth to a caramel colored syrup, which is now the chief ingredient of the world‘s favorite
drink. The syrup combined with carbonated the soft drink market. It is estimated that this
drink is served more than one thousand million times in a day.

In 1894, this beverage got into bottle, courtesy a candy merchant from Mississippi. By the
1950‘s Colas was a daily consumption item, stored in house hold fridges. Soon were born
other non- cola variants of this product like orange & Lemon.

Now, the soft drink industry has been dominated by three major players –

1. The New York based Pepsi co. Inc.

2. The Atlanta based coca cola co.

3. The United Kingdom based Cadbury Schweppes.

Throughout the glove these major players have been battling it. Out of a big chunk of the
ever growing cold drink market, now this battle has begun in India too. India is now the

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part of cold drink war. Gone are days of Ramesh Chauhan, India‘s one time cola king and
his bouts of pistol shooting. Expect now to hear the boon of cannons when the Coca Cola
& Pepsi co. battles it out for, as the Jordon goes a bigger share of throat. By buying Over
local competition, the two American Cola giants have cleared up the arena and are
packing all their power behind building the Indian franchisee of their globe girdling brands.
The huge amount invested in fracture has never been seen before. Both players seen an
enormous potential in his country where swigging a carbonated beverage is still
considered a treat, virtually a luxury. Consequently, by world standards India‘s per capita
consumption of cold drinks as going by survey results is rock bottom, less than over
Neighbors Pakistan & Bangladesh, where it is four times as much. Behind the hype, in an
effort invisible to consumer Pepsi pumps in Rs 3000 crores (1994) to add muscle to its
infrastructure in bottling and distribution. This is apart from money that company‘s
franchised bottles spend in upgrading their plants all this has contributed to substantial
gains in the market. In colas, Pepsi is already market leader and in certain cities like
Banaras, Pepsi outlets are on one side & all the other colas put together on the other.
While coke executive scruff at Pepsi‘s claims as well as targets, industry observers are of
the view that Pepsi has definitely stolen a march over its competitor coke.

Apart from numbers, Pepsi has made qualitative gains. The foremost is its image. This
image turnaround is no small achievements, considering that since it was established
in1989, taking the hardship route prior to liberalization and weighed down by export
commitments.

Now, at present as there are three major players coke, Pepsi and Cadbury and there is
stiff competition between first two, both Pepsi and coke have started, sponsoring local
events and staging frequent consumer promotion campaigns. As the mega event of this
century has started, and the marketers are using this event – world cup football, cricket
events and many more other events. Like Pepsi, coke is picking up equity in its bottles to
guarantee their financial support; one side coke is trying to increase its popularity through
eat Food, enjoy Food. Drink only coca cola. Eat cricket, sleep cricket. Drink only coca
cola. Eat movies, sleep movies. Drink only coca cola.

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On the other side of coin Pepsi has introduced AMITABH BACHHAN for capturing the
lemon market through MIRINDA – Lemon with ―zor ka jhatka dhere se lage‖.

But no doubt‘ that UK based Cadbury is also recognizing its presence. So there is a real
crush in the soft drink market. with launch of the carbonated organize drink Crush, few
year ago in Banaras ., the first in a series of a launches , Cadbury Schweppes beverage
India (CSBI) HAS PLANNED:- The world third largest soft drink marketers all over the
country. CSBI wholly owned subsidiary of the London based $ 6.52billion. Cadbury
Schweppes is hoping that crush is going well and well not suffer the same fate as the
Rs.175 crore Cadbury India‘s apple drink Apella. CSBI is now with orange (crush), and
Schweppes soda in the market.

As orange drinks are the smallest of non-cola categories that is Rs. 1100 crore markets
with 10% market share and cola heaving 50% is followed by Lemon segment with
25%.The success of soft drink industry depends upon 4 major factors viz.

 Availability
 Visibility
 Cooling
 Range

 AVAILABILITY

Availability means the presence of a particular brand at any outlet. If a product is now
available at any outlet and the competitor brand is available, the consumer will go for it
because generally the consumption of any soft drink is an impulse decision and not
predetermined one.

 VISIBILITY

Visibility is the presence felt, if any outlet has a particular brand of soft drink say- Pepsi
cola and this brand is not displayed in the outlet, then its availability is of no use. The soft
drink must be shown off properly and attractively so as to catch the attention of the
consumer immediately Pepsi achieves visibility by providing glow signboards, hoarding,

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calendars etc. to the outlets. It also includes various stands to display Pepsi and other
flavors of the company.

 COOLING

As the soft drinks are consumed chilled so cooling them plays a vital role in boosting up
the sales. The brand, which is available chilled, gets more sales then the one which is
not, even if it is more preferred one.

 RANGE

This is the last but not the least factor, which affects the sale of the products of a
particular company. Range availability means the availability of all flavors in all sizes.

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3.2 COCA-COLA

3.2.1 COCA-COLA IN INDIA

―Coke would rather be long term wiser, than being short term smarter‖

Abhraham ninan

Director External Affairs

COCA-COLA INDIA

India is home to one of the most ancient cultures in the world dating back over 5000
years. At the beginning of the twenty-first century, twenty-six different languages were
spoken across India, 30% of the population knew English, and greater than 40% were
illiterate. At this time, the nation was in the midst of great transition and the dichotomy
between the old India and the new was stark. Remnants of the caste system existed
alongside the world‘s top engineering schools and growing metropolises as the
historically agricultural economy shifted into the services sector. In the process, India had
created the world‘s largest middle class, second only to China.

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A British colony since 1769 when the East India Company gained control of all European
trade in the nation, India gained its independence in 1947 under Mahatma Ghandi and his
principles of non-violence and self-reliance. In the decades that followed, self-reliance
was taken to the extreme as many Indians believed that economic independence was
necessary to be truly independent. As a result, the economy was increasingly regulated
and many sectors were restricted to the public sector. This movement reached its peak in
1977 when the Janta party government came to power and Coca-Cola was thrown out of
the country

Coca-Cola was the leading soft drink brand in India until 1977 when it left rather than
reveals its formula to the government and reduces its equity stake as required under the
Foreign Exchange Regulation Act (FERA) which governed the operations of foreign
companies in India. After a 16-year absence, Coca-Cola returned to India in 1993,
cementing its presence with a deal that gave Coca-Cola ownership of the nation's top
soft-drink brands and bottling network. Coke‘s acquisition of local

Popular Indian brands including Thums Up (the most trusted brand in India21), Limca,
Maaza, Citra and Gold Spot provided not only physical manufacturing, bottling, and
distribution assets but also strong consumer preference. This combination of local and
global brands enabled Coca-Cola to exploit the benefits of global branding and global
trends in tastes while also tapping into traditional domestic markets.

Leading Indian brands joined the Company's international family of brands, including
Coca- Cola, diet Coke, Sprite and Fanta, plus the Schweppes product range. In 2000, the
company launched the Kinley water brand and in 2001, Shock energy drink and the
powdered concentrate Sunfill hit the market. While The Coca-Cola Company is a global
company with some of the world's most widely brands, the Coca-Cola business in India,
as in each country where it operates, is a local business.

After a 16-years absence, Coca-Cola returned to India in 1993. The Company's presence
in India was cemented in November that year in a deal that gave Coca-Cola ownership of
the nation's top soft-drink brands and bottling network.
Coca-Cola India has made significant investments to build and continually improve its

37

business in India, including new production facilities, wastewater treatment plants, and
distribution systems and marketing equipment

 During the past decade, the Coca-Cola system has invested more than US$ 1
billion in India

 Coca-Cola is one of the country's top international investors by 2003; Coca-Cola
India had won the prestigious Woodruff Cup from among 22 divisions of the
Company based on three broad parameters of volume, profitability, and quality.

 In 2003, Coca-Cola India pledged to invest a further US$100 million in its
operations

 In India, we indirectly create employment for more than 125,000 people in
related industries through our vast procurement, supply and distribution system

 Virtually all the goods and services required to produce and market Coca-Cola
locally are made in India

 The Coca-Cola system in India comprises 27 wholly-owned company-owned
bottling operations and another 17 franchisee-owned bottling operations.

 A network of 29 contract-packers also manufactures a range of products for the
Company

 The complexity of the Indian market is reflected in the distribution fleet, which
includes 10-tonne trucks, open-bay three-wheelers that can navigate the narrow
alleyways of Indian cities, and trademarked tricycles and pushcarts.

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 The complete manufacturing process had a documented quality control and
assurance program including over 400 tests performed throughout the process.
 We will collaborate creatively with those who sell our products in the
marketplace, developing relationships built on mutual success, not only from our
brands, but also from our services.
 Ranking: We own 4 of the world‘s top 5 non-alcoholic sparkling beverage brands:
Coca-Cola, Diet Coke, Sprite and Fanta.

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Oct 1993 1993 - Pune 1996
Coke relaunched Concentrate Can, PET plant
Plant started in Pune
in Agra

1998
Sept 1997
First greenfield
Acquired first bottling
plant, Ahmedabad plant, Bareilly

1997 - 1999 2000
22 Acquired, 6 COBO regions,
4 bottling 7 Greenfield
companies 1 FOBO operation

2010- 7000 local employees, 500 managers, over 60
manufacturing locations, 27 Company Owned Bottling
Operations (COBO), 17 Franchisee Owned Bottling
Operations (FOBO) and a network of 29 Contract Packers
that facilitate the manufacture process of a range of products
for the company

Beverage industry in India: a brief insight:-

In India, beverages form an important part of the lives of people. It is an industry, in which
the players constantly innovate, in order to come up with better products to gain more
consumers and satisfy the existing consumers.

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The soft-drink industry comprises companies that manufacture nonalcoholic beverages
and carbonated mineral waters or concentrates and syrups for the manufacture of
carbonated beverages.

Non-alcoholic soft drink beverage market can be divided into fruit drinks and soft drinks.
Soft drinks can be further divided into carbonated and non-carbonated drinks. Cola,
lemon and oranges are carbonated drinks while mango drinks come under non
carbonated category.

Cola products account for over 60% of the total soft drink market and include popular
brands such as Coca-Cola, Pepsi, and Thumps up etc. Non-cola segment constitutes for
over 35% of the market.

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3.2.2 MISSION AND VISION

MISSION

Everything we do is inspired by our enduring……

 To Refresh the World ...in body, mind, and spirit.
 To Inspire Moments of Optimism...through our brands and our actions.
 To Create Value and Make a Difference...everywhere we engage.

VISION

To achieve sustainable growth, we have established a Vision with clear goals:

 People: Being a great place to work where people are inspired to be the best they
can be.
 Planet: Being a responsible global citizen that makes a difference.
 Portfolio: Bringing to the world a portfolio of beverage brands that anticipate and
satisfy peoples' desires and needs.
 Partners: Nurturing a winning network of partners and building mutual loyalty.
 Profit: Maximizing return to shareowners while being mindful of our overall
responsibilities.

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3.2.4 BRANDS OF COKE

Coca-cola

Coca cola is the most popular and highest selling soft drinks in the history, as well as the
best known product in the world. Coca-Cola has a truly remarkable heritage. From the
humble beginning in 1886, it‘s now a flagship brand of the largest manufacturer, marketer
and distributor of the non-alcoholic beverages in the world.

Diet coke

World's Third Largest Selling Soft Drink

Diet Coke is for those who want plenty of taste but no calories. Diet coke is also known as
Coke light in some countries.

Thums up

Today it is the largest selling soft drink brand in India.

Thums Up is known for its strong, fizzy taste and its confident, mature and uniquely
masculine attitude. This brand clearly seeks to separate the men from the boys.

Sprite

Sprite is the brand that gained most share in sparkling beverages in the year 2010.
Present in over 130 countries worldwide. In India, sprite is the second largest brand of
soft drinks. Sprite is a good product at cola and contains at lemon flavor. And preferred by
all age of people.

Fanta

Fanta the 'orange' drink

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Over the years Fanta has occupied a strong market place and is identified as the "The
Fun Catalyst".

Limca

Limca's freshness is like no other- 'lime n lemoni'

Lime 'n' lemoni Limca can cast a tangy refreshing spell on anyone, anywhere. Derived
from 'Nimbu' + 'jaisa' hence Lime Sa, Limca has lived up to its promise of refreshment
and has been the original thirst choice of millions of consumers for over 3 decade.

Maaza

Maaza – the wholesome family fun Mango. Imagine this delicious fruit, bottled. This is
what Maaza is all about. Maaza- the most loved beverage brand in India. It provides the
most authentic experience of rich, juicy mangoes—anytime, anywhere!

Minute Maid Nimbu

Just Like Home-made Lemonade

A lemon drink with no added preservative or colour, Minute Maid Nimbu Fresh offers a
refreshing drinking experience as close to homemade NimbuPaani as possible in a
packaged format. Nostalgia in a bottle, Minute Maid Nimbu Fresh offers 'Ghar Ki Yaadon
Ka Ras' (memories of home-made lemonade) in every sip.

Minute Maid

Refreshingly Orange Surprisingly Pulpy!

Minute Maid – one of the world's largest juice and juice drink brands.

Kinley

Water you can trust and be truly safe and pure.

Kinley water understands the importance and value of this life giving force. Kinley water
thus promises water that is as pure as it is meant to be.
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Kinley Soda

India's no.1 National Soda brand.

With its unique taste and formula Kinley Soda packs quite a punch

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3.2.4 COKE: BRANDS IN INDIA

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3.2.5 SLOGANS OF COCA-COLA

1886 "Coca-Cola-Delicious, Refreshing, Exhilarating"

1904 - Delicious and refreshing.

1905 - Coca-Cola revives and sustains.

1906 - The great national temperance beverage.

1908 - Good till the last drop

1917 - Three million a day.

1922 - Thirst knows no season.

1923 - Enjoy life.

1924 - Refresh yourself.

1925 - Six million a day.

1926 - It had to be good to get where it is.

1927 - Pure as Sunlight

1927 - Around the corner from anywhere.

1928 - Coca-Cola ... pure drink of natural flavors.

1929 - The pause that refreshes.

1932 - Ice-cold sunshine.

1937 - America's favorite moment.

1938 - The best friend thirst ever had.

1938 - Thirst asks nothing more.

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1939 - Coca-Cola goes along.

1939 - Coca-Cola has the taste thirst goes for.

1939 - Whoever you are, whatever you do, wherever you may be, when you think of
refreshment, think of ice cold Coca-Cola.

1941 - Coca-Cola is Coke!

1942 - The only thing like Coca-Cola is Coca-Cola itself.

1944 - How about a Coke?

1945 - Coke means Coca-Cola.

1945 - Passport to refreshment.

1947 - Coke knows no season.

1948 - Where there's Coke there's hospitality.

1949 - Coca-Cola ... along the highway to anywhere.

1952 - What you want is a Coke.

1954 - For people on the go.

1956 - Coca-Cola ... makes good things taste better.

1957 - The sign of good taste.

1958 - The Cold, Crisp Taste of Coke

1959 - Be really refreshed.

1963 - Things go better with Coke.

1966 - Coke ... after Coke ... after Coke.

1969 - It's the real thing.

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1971 - I'd like to buy the world a Coke. (basis for the song I'd Like to Teach the World to
Sing)

1974 - Look for the real things.

1976 - Coke adds life.

1979 - Have a Coke and a smile

1982 - Coke is it!

1985 - America's Real Choice

1986 - Red White & You (for Coca-Cola Classic)

1986 - Catch the Wave (for New Coke)

1989 - Can't Beat the Feeling. (also used in the UK)

1993 - Always Coca-Cola.

2000 - Enjoy.

2001 - Life tastes good. (also used in the UK)

2003 - Real.

2005 - Make It Real.

2006 - The Coke Side of Life (used also in the UK)

2007 - Live on the Coke Side of Life (also used in the UK)

2009 - Open Happiness

2010 - Twist The Cap To Refreshment

2011 - Life Begins Here

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India

"Thanda matlab Coca-Cola!" ("Cold means Coca-Cola!") (2000s)

"Pio sar utha ke" ("Drink with pride")

"Jo chaho ho jaye, Coca-Cola enjoy!" ("Whatever you wish will come true, enjoy Coca-
Cola!")

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3.3 PEPSICO

PepsiCo is one the largest companies in the U.S. It figures amongst the largest
15companies worldwide according to the number of employees hired. It has a U.S.
Fortune rank of 50.The company profits for 1997 were $2.14 billion on revenues of $20.92
billion and Pepsi is bottled in nearly 190 countries. PepsiCo is a world leader in
convenient snacks, foods and beverages with revenues of more than $43 billion and over
198,000employees. Take a journey through our past and see the key milestones that
define PepsiCo. PepsiCo is a world leader in the food chain business. It consists of many
companies amongst which the prominent once are Pepsi-Cola, Frito-Lay and Pepsi Food
International. The group is presently into two of the most profitable and profitable and
growing industries
namely, beverages and snack foods. It has scores of big brandsavailable in nearly 150

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countries across the globe. The group has established for itself once of the strongest
brands in various segments of its operations.

The beverages segment primarily markets its Pepsi, Diet Pepsi, Mountain Dew and
other brands worldwide and 7-UP outside the U.S. markets. These are positioned in close
competition with Coca-Cola Inc. of USA. A point which is worth a mention is that Coca-
Cola gets 80% of its profits for International operations while the same figure for PepsiCo
stands at 6%. The segment is also in the bottling plants and distribution facilities and also
distributes the ready to drink tea products of Lipton in North America. In a joint-venture
with orient spray juice products PepsiCo also manufactures and distributes fruit juices.
The snack food division manufactures and distributes and markets chips and other
snacks worldwide. The international operations of this segment extend to the markets of
Mexico, the UK and Canada. Frito-Lay represents this segment of PepsiCo. The
restaurant segment earlier primarily consists of the operations of the worldwide Pizza Hut,
Taco Bell and KFC chains, PFS. Pepsi company‘s restaurant distribution operation,
supplies company owned and franchise restaurants in the U.S. The company ventured
into restaurant business with Taco Bell, KFC, Pizza Hut ended last year when they were
spanned off from the company. A packaged goods company comprised of Pepsi-Cola
Company and Frito-Lay will continue to bear the PepsiCo name. The move should
enhance both corporations ability to prosper with their own fully dedicated structure and
management team.

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3.3.1PEPSICO IN INDIA

PepsiCo gained entry to India in 1988 by creating a joint venture with the Punjab
government-owned Punjab Agro Industrial Corporation (PAIC) and Voltas India Limited.
This joint venture marketed and sold Lehar Pepsi until 1991, when the use of
foreign brands was allowed; PepsiCo bought out its partners and ended the joint venture
in 1994.Others claim that firstly Pepsi was banned from import in India, in 1970, for
having refused to release the list of its ingredients and in 1993, the ban was lifted, with
Pepsi arriving on the market shortly afterwards. These controversies are a reminder of
"India's sometimes acrimonious relationship with huge multinational companies." Indeed,
some argue that PepsiCo and The Coca-Cola Company have "been major targets in
part because they are well-known foreign companies that draw plenty of attention."In
2003, the Centre for Science and Environment (CSE), a non-governmental organization
in New Delhi, said aerated waters produced by soft drinks manufacturers in India,
including multinational giants PepsiCo and The Coca-Cola Company, contained Toxins,
including linden , DDT, marathon and chlorpyrifos — pesticides that can contribute to

53

cancer, a breakdown of the immune system and cause birth defects. Tested products
included Coke, Pepsi, 7 Up, Miranda, Fanta, Thums Up, Limca, and Sprite.CSE found
that the Indian-produced Pepsi's soft drink products had 36 times the level of pesticide
residues permitted under European Union regulations; Coca Cola's 30 times.CSE said it
had tested the same products in the US and found no such residues. However, this was
the European standard for water, not for other drinks. No law bans the presence of
pesticides in drinks in India. The Coca-Cola Company and PepsiCo angrily denied
allegations that their products manufactured in India contained toxin levels far above the
norms permitted in the developed world. But an Indian parliamentary committee, in 2004,
backed up CSE's findings and a government-appointed committee, is now trying to
develop the world's first pesticides standards for soft drinks. Coke and PepsiCo
opposed the move, arguing that lab tests aren't reliable enough to detect minute traces of
pesticides in complex drinks. As of 2005, The Coca-Cola Company and PepsiCo together
hold 95% market share of soft-drink sales in India. PepsiCo has also been accused by the
Puthussery panchayat in the Palakkad district in Kerala, India, of practicing "water piracy"
due to its role in exploitation of ground water resources resulting in scarcity of drinking
water for the panchayat resident who have been pressuring the government to close
down the PepsiCo unit in the village. In 2006, the CSE again found that soda drinks,
including both Pepsi and Coca-Cola, had high levels of pesticides in their drinks. Both
PepsiCo and The Coca-Cola Company maintain that their drinks are safe for consumption
and have published newspaper advertisements that say pesticide levels in their products
are less than those in other foods such as tea, fruit and dairy products. In the Indian state
of Kerala, sale and production of Pepsi-Cola, along with other soft drinks, was banned by
the state government in 2006, but this was reversed by the Kerala High Court merely a
month later. Five other Indians tates have announced partial bans on the drinks in
schools, colleges and hospitals.

Brand Facts

PepsiCo nourishes consumers with a range of products from tasty treats to healthy eats
that deliver enjoyment, nutrition, convenience as well as affordability The group has built
an expansive beverage and foods business. To support its operations, PepsiCo has 42

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bottling plants in India, of which 13 are company owned and 29 are franchisee owned. In
addition to this, PepsiCo‘s Frito Lay division has 3 state-of-the-art plants. PepsiCo‘s
business is based on its sustainability vision of making tomorrow better than today.
PepsiCo‘s commitment to living by this vision every day is visible in its contribution to the
country, consumers and farmers.

Beverages

PepsiCo India‘s expansive portfolio includes iconic refreshment beverages Pepsi, 7
UP, Nimbooz, Miranda and Mountain Dew, in addition to low calorie options such as Diet
Pepsi, hydrating and nutritional beverages such as Aquafina drinking water, isotonic
sports drinks - Gatorade, Tropicana100% fruit juices, and juice based Drinks – Tropicana
Nectars, Tropicana Twister and Slice. Local brands – Lehar EvervessSoda, Dukes
Lemonade and Mangola add to the diverse range of brands

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Foods

PepsiCo‘s food division, Frito-Lay, is the leader in the branded salty snack market and all
Frito Lay products are free of trans-fat and MSG. It manufactures Lay‘s Potato Chips;
Cheetos extruded snacks, Uncle Chips and traditional snacks under the Kurkure and
Lehar brands. The company‘s high fiber breakfast cereal, Quaker Oats, and low fat and
roasted snack options enhance the healthful choices available to consumers. Frito Lay‘s
core products, Lay‘s, Kurkure, Uncle Chipps and Cheetos are cooked in Rice Bran Oil to
significantly reduce saturated fats and all of its products contain voluntary nutritional
labeling on their packets.

QUICK FACTS

 PepsiCo established its business operations in India in 1989.

 Invested more than USD 1 Billion since inception.

 Well known and loved global brands that delight and nourish consumers.

 It provides direct and indirect employment to 150,000 people in India.

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 It has more than 42 bottling plants in India, of which 13 are company owned &
29franchisee owned.

 3 State-of-the-art food plants in Punjab, Maharashtra and West Bengal.

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3.3.2 PEPSICO INDIA: A FORTUNE 500 COMPANY IN INDIA

PepsiCo, which ranks among the world‘s five largest food and beverage companies with
16 brands, and its partners have invested more than US$ 700 million in India - building
businesses, which today provide direct or indirect employment to more than 60,000
people. Since Pepsi‘s entry into the Indian market in 1989, several brands from
its portfolio have become established category leaders. Brand Pepsi is now the 2nd
biggest brand in the country. PepsiCo‘s portfolio of beverage brands in India includes the
flagship cola brand Pepsi; Diet Pepsi; two flavors of Mirinda – Orange and Lemon; 7UP;
Mountain Dew; packaged drinking water - Aquafina; variants of the fruit drink brand Slice;
the 100 per cent fruit juice brand Tropicana in several variants and the world‘s leading
sports drink Gatorade.

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Pepsi - Yeh Hai Youngistan Meri Jaan

3.3.3 BRAND HISTORY

 Pepsi is a hundred year old brand loved by over 200 million people worldwide. The
largest single selling soft drink brand in India is the ubiquitous socialite at every
occasion.

 Youngistan loves it. 200 million people worldwide love it. But what has made Pepsi
the single largest selling soft drink brand in India is actually a formula concocted a
century ago in a far away continent.

 1886, United States of America. Caleb Brad man, the man with a plan, got on to
formulate a blockbuster digestive drink and decided to call it Brad‘s drink. It was
this doctor‘s potion that was to become Pepsi Cola in 1898, and eventually, Pepsi
in 1903.

 Pepsi has always played on the front foot and since its inception has come out with
revolutionary concepts like Diet, 2L bottles, recyclable plastic cola bottles and the
enviable My Can.

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3.3.4 PEPSICO: Brand Advantage

 Pepsi has become a friend to the youth and has led many youth cultures.
Youngsters over the generations have grown up with Pepsi and share an
emotional connect with it, unlike any other cola brand. Be it parties, hangouts,
or just another day at home, a day is never complete without the fizz of Pepsi!

 Pepsi, Cricket and bollywood have been joined at the hip since the beginning.
Shahrukh Khan, Sachin Tendulkar, Saif Ali Khan, Amitabh Bachchan, Kareena
Kapoor, Priyanka Chopra, Virender Sehwag, M. S. Dhoni, John Abraham,
Ranbir Kapoor and Deepika Padukone are a few celebrities who will go any length
for a chilled Pepsi.

 The Pepsi My Can is undoubtedly the most popular cola pack of all times. It is
not just a pack but a style statement for today‘s youth.

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3.3.5 PEPSICO PRODUCT IN INDIA

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3.3.6 SLOGANS OF PEPSI

1939–1950: "Twice as Much for a Nickel"

1950: "More Bounce to the Ounce"

1950–1957: "Any Weather is Pepsi Weather"

1957–1958: "Say Pepsi, Please"

1958–1960: "Be Sociable, Have a Pepsi"

1961–1964: "Now Its Pepsi for Those Who Think Young" (jingle sung by Joanie
Sommers)

1964–1967: "Come Alive, You're in the Pepsi Generation" (jingle sung by Joanie
Sommers)

1967–1969: "(Taste that beats the others cold) Pepsi Pours It On".

1969–1975: "You've Got a Lot to Live, and Pepsi's Got a Lot to Give"

1975–1977: "Have a Pepsi Day"

1977–1980: "Join the Pepsi People (Feeling Free)"

1980–1981: "Catch That Pepsi Spirit" (David Lucas, composer)

1981–1983: "Pepsi's got your taste for life"

1983: "It‘s cheaper than Coke!"

1983–1984: "Pepsi Now! Take the Challenge!"

1984–1991: "Pepsi. The Choice of a New Generation" (commercial with Michael
Jackson and The Jacksons, featuring the Pepsi version of "Billie Jean", "Bad" and "Black
or White". "Black of White"'s was promoting the Dangerous World Tour.)

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1984–1988: "Diet Pepsi. The Choice of a New Generation"

1988–1989: "Diet Pepsi. The Taste That's Generations Ahead"

1989–1990: "Diet Pepsi. The Right One"

1989–1992: "Diet Pepsi. The Taste That Beats Diet Coke"

1986–1987: "We've Got the Taste" (commercial with Tina Turner)

1987–1990: "Pepsi's Cool" (commercial with Michael Jackson, featuring Pepsi version
of Bad)

1990–1991: "You got the right one Baby UH HUH" (sung by Ray Charles for Diet Pepsi)

1990–1991: "Yehi hai right choice Baby UH HUH" (Hindi - meaning "This is the right
choice Baby UH HUH") (India)

1991–1992: "Chill Out"

1992–1993: "Be Young, Have Fun, Drink Pepsi"

1993–1994: "Right Now" (Van Halen song for the Crystal Pepsi advertisement)

1995: "Nothing Else is a Pepsi"

1995–1996: "Drink Pepsi. Get Stuff." Pepsi Stuff campaign

1996–1997: "Pepsi: There's nothing official about it" (During the Wills World Cup (cricket)
held in India/Pakistan/Sri Lanka)

1997–1998: "Generation Next" (with the Spice Girls)

1998–1999: "It‘s the cola" (100th anniversary commercial)

1999–2000: "For Those Who Think Young"/"The Joy of Pepsi-Cola" (commercial
with Britney Spears/commercial with Mary J. Blige)

1999–2006: "Yeh Dil Maange More!" (Hindi - meaning "This heart asks for more") (India)

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2003: "It‘s the Cola"/"Dare for More" (Pepsi Commercial)

2006–2007: "Why You Doggin' Me"/"Taste the one that's forever young" (Mary J. Blige)

2007–2008: "More Happy"/"Taste the once that's forever young" (Michael Alexander)

2000–present: "pepsi ye pyaas heh bari" ((Urdu) meaning "There is a lot of thirst"

2009–present: "Refresh Everything"/"Every Generation Refreshes the World"

2009–present: "Yeh hai youngistaan meri jaan" (Hindi - meaning "This is our young
country my baby")

2009– "My Pepsi My Way"(India)

2010– "Every Pepsi Refreshes The World"

2010–2011 "Badal Do Zamana" (Urdu - meaning "Change The World" by CALL)

2011–present: "Change the game" (Bangladesh, India for the 2011 Cricket World Cup)

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3.4 THE RIVARLY BEGINS:

3.4.1 Coke Come in India

Coca cola comes to India with fanfare in the fifties. For a number of days, The Hindustan
Times and other newspapers of New Banaras carried full page advertisement showing a
big boy in uniform with a soft-drink crown as the cap. There was no indication of the
product. After a few days, Coke was introduced. It was an entirely new drink which
fascinated people. It soon became the national drink. For the first time, a soft-drink was
available from one corner of the country to another. The person who brought Coca-Cola
to India was the father of late Sardar Charanjit Singh, Sardar Mohan Singh. A practical
man Mohan Singh realized that to popularize Coca-Cola, and make it a bestseller it was
necessary to ―catch them young.‖ So he focused on youngsters in the society. The
company realized that to become a mass consumption product, one has to go to the
village. They gave much importance to the distributive network. The company trucks
supplied coke to even the remotest village. Few products appears to be more similar than
soft drinks, yet the Cola wars that mark the competition between Coke and Pepsi show
how even organizations with highly similar product can be differentiated by their business
strategies. Then comes battles over the issue of bottle size standardization. Coke the
arch rival tried to offering more Cola at a lower price. Pepsi which had some of it‘s early
investment tied up in 250ml bottles, went the fountain way. The General bottle size freed
has settled at 300 ml. 100 ml more than the pre MNC standard. Fountain mix dispensers,
carry home bottles, even 1.50 plastic bottle with caps good enough to keep them lying
down and still preserve the fizz. It poured in vast sums to whip up its visibility at the retail
level, so that consumers were greeted virtually at every street corner by Pepsi‘s blue, red
and white colors, because they have perception ―the thing on display Sells more.‖ Coca-
Cola is, finally, redoing the real thing to the replicate the success that it‘s arch-rival,
PepsiCo. Has achieved with its fast and furious marketing. But to win them, Coke is
copying Pepsi.

65

3.4.2 MARKETING STATEGIES OF COKE AND PEPSI

Pepsi and Coca-Cola focused on the following controllable aspects:-

Price

Coca-Cola reduced prices nationwide by 15-25% to make them affordable and easy to
get access to. Pepsi introduced returnable glass bottles for customers to recoup costs.

Product

Coca-Cola and Pepsi launched different product lines to appeal to the Indian consumer
tastes. They started with product lines that were already available, such as cola, fruit
drinks, and carbonated water. Then, when the market was ―ready‖, they launched other
lines, such as bottled water (Coke- Kinley and Pepsi-Aquafina) and clear lime sodas
(Coke-Sprite, Pepsi-7 Up).

Promotion

Both Coca-Cola and Pepsi adapted to the local market with promotions. They promoted
heavily during the Navrarti festival. Pepsi gave away a kilo of Basmati rice with every refill
of a case of Pepsi. This is an effective strategy to blend the old (rice) with the new
(Pepsi). Coca-Cola gave away vacations to Goa, a famous resort in India.

Further, they teamed up with influential figures in Indian pop-culture to promote their
products. Pepsi launched an ambitious marketing campaign sponsoring Cricket
celebrities and athletes from the World Cup. Coca-Cola launched its Lifestyle Advertising
Campaign as a method of building brand loyalty among its target markets: ―India A‖ (18-
24 year old urban youth) and ―India B‖ (rural youth). They used a music director and an
actor to promote the project. Most importantly, they tried to create a connection between
local idioms and their products so that they would stick. The use of celebrities is a
powerful marketing tool across cultures to promote products.

66

Channels of distribution

Production plants and bottling centers were strategically placed in large cities all around
India. More were added as demand grew, along with new product lines. In Coca-Cola‘s
case, the JV with Parle provided access to its bottling plants and its products. By forming
partnerships, both Coca-Cola and Pepsi were able to get initial access into the market.

Research

It seems that prior research into general market demand may have been the most
overlooked aspect by Coca-Cola and Pepsi. India has not ever been considered a
lucrative market for the soft drink industry. In 1989, Indians per capita were consuming
only three bottles per year. One might question the risk-reward analysis that both
companies partook in. Why enter a high-risk political/economic market where there is a
very little proven track record of success in beverages?

67

3.4.3 PRODUCT COMPARISION IN INDIA

S. NO. Coca-cola product Pepsi product

1 Coke Pepsi

2 Diet Coke Pepsi Diet

3 Thums-up Pepsi

4 Limca Mirinda lemon

5 Fanta Mirinda orange

6 Maaza Slice

7 Sprite 7up

8 Sprite Mountain Dew

9 Minute Made Tropicana

10 Kinley Mineral Water Aquifinna Mineral Water

11 Kinley Club Soda --------

12 Georgia coffee --------

13 ------ Lays product

14 ------ Lehar product

68

3.4.4 STRATEGY ADOPTED BY COKE AND PEPSI

The Pepsi Process

Despite being a global brand, Pepsi has built its success on meeting the Indian
consumer‘s need particularly in terms of making the brand synchronize with localized
events and traditions. Instead of harping on its global lineage, ergo, it tries to plug into
ethnic festivals, use the vernacular indifferent part of the country, and blend into the local
fabric. Pepsi is using both national campaigns-such as the Drink Pepsi, Get Stuff scheme,
which offers large discounts on other products to Pepsi-buyers as well as local.

The Coke Copy

Instead of creating a bond with the customers through small but high-impact events,
Coca-Cola chose to associate itself with national and international mega events like the
world cup Cricket, 1996 and World cup Football 1998. But now coke is also entering into
local action. Coke is also trying to make their brand synchronize with localize event
tradition and festivals. Coca-Cola new tag line in this advertisement is ―Real shopping,
real refresher‖. In this way Coke is copy Pepsi.

EMPOWERMENT

The Pepsi Process

Once of the strongest weapons in Pepsi‘s armory is the flexibility. it has empowered its
people with. Every manager and salesperson has the authority to take whatever steps he,
or she, feels will make consumers aware of the brand and increase its consumption.

69

The Coke Copy

Flexibility is the weapon that Coca-Cola, fettered as it is by the need for approvals from
Atlanta for almost everything. In the past, this has shown up in its stubborn insistence on
junking the franchisee network it had acquired from Parle; in its dependence on its own
feedback mechanism over that of its bottlers; and on its headquarters approaches.

PRICE

The Pepsi process

Pepsi has consistently wielded its pricing strategy as in invitation to sample, aiming to turn
trial into addiction. It launched the 500 ml bottle in 1994 at Rs. 8 versus Thumps Up‘s Rs.
9, in April, 1996, its 1.5 liters bottle followed Coke into the marketplace at Rs. 30 – Rs 5
less than Coke‘s .But it couldn‘t continue the lower price positioning for long.

The Coke Copy

Initially, coke carbon-copied the strategy by introducing its 330mlcans in January 1996, at
an invitation price of Rs. 15 before raising it to Rs 18. By this time,it had realized that the
Coca-Cola brand did not hold enough attraction for customers to fork out a premium. The
200ml Coke, launched so far in parts of eastern, western, and northern India, is priced at
Rs. 5, lowering the entry-barriers. Too really drive the market, as Coke wants to you must
go down to Rs. 3.

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3.4.5 CELEBRITIES ENDORSED

CELIBRITIES OF PEPSI:

 AMITABH BACHHAN
 SHAHRUKH KHAN
 PRIETY ZINTA
 SACHIN TENDULKAR
 SAIF ALI KHAN
 SOURAV GANGULY
 RAHUL DRAVID
 MOHAMAD KAIF
 ZAHEER KHAN
 HARBHAJAN SINGH
 YUVRAJ SINGH
 RANBIR KAPOOR
 VINDHU DARA SUNGJ
 DEEPIKA PADUKONE

CELIBRITIES OF COKE:

 SALMAN KHAN
 AISHWARYA RAI
 AAMIR KHAN
 VIVEK OBEROI
 BIPASHA BASU
 AKSHAY KUMAR
 IMRAN KHAN

71

3.4.6 PRICE

Maximum retail price of 300 ml bottles is controlled by the Central Government. The other
size and packs are priced keeping factors like competition, internal costs, external costs,
and the corporate objective of the company in the mind

Products Selling price(per caret) Max selling price(per
caret)

300 ml bottle 240 264

500ml bottle 364 388

1 litter 500 520

Soda 300 ml 164 188

Cans 332 352

1.5 litter PET bottle 50* 55*

Price per bottles the empty bottles are priced at Rs 120 per crate and the shell at Rs100.

72

CHAPTER- 4

RESEARCH
METHODOLOGY

73

4.1 METHODS OF DATA COLLECTION

The task of data collection begins after a research problem has been defined and
research design chalked out. While deciding about the method of data collection to be
used for the study, the researcher should keep in the mind two types of data viz., primary
and secondary. The primary data are those which are collected afresh and for the first
time, and thus happen to be original in character. The secondary data on the other hand,
are those which have already been collected by someone else and which have already
passed through the statistical process. The method of collecting primary and secondary
data differ since primary data are to be originally collected, while in the case of secondary
data the nature collection work is merely that of competition.

There are four Tools which are used to collect the data.

Questionnaire
Observation
Interview

All these methods of data collection have some merits and demerits. The adaptation of
the method of data collection depends on the nature of the research work to be
conducted. I used the questionnaire method to collect the data. For that I prepared a
printed questionnaire which was filled by the interviewer.

COLLECTION OF DATA THROUGH QUESTIONNAIRES-

This method of data collection is quite popular, particularly in case of big enquiries. It is
being adopted by private individuals, research workers, private and public organizations
and even by governments. In this method a questionnaire is sent to the person concerned

74

with the request to answer the questions. A questionnaire consists of a number of
questions printed or typed in a definite order on a form or set of forms

The method of collecting data by the questionnaire is most extensively employed in
various economic and business surveys. The merits claimed on behalf of this method are
as follows.

 There is low cost even when the universe is large and is widely spread
geographically.
 It is free from the bias of the interviewer; answers are respondents‘ own words.
 Respondents have adequate time to give well thought out answers.
 Respondents, who are not easily approachable, can also be reached conveniently.
 Large samples can be made use of and thus results can be made more dependable
and reliable.

75

4.2 SAMPLING DESIGN

A sample design is a definite plan for obtaining a sample from the given population. It
refers to the technique or the procedure the researcher would adopt in selecting items for
the sample. Sample design may as well lay down the number of items to be included in
the sample i.e., the size of the sample. Sample design is determined before data are
collected. There are many sample designs from which a researcher can choose. Some
designs are relatively more precise and easier to apply than others. Researcher must
select a sample design which should be reliable and appropriate for his research study.

This research design is simply the framework for a study that guides the collection and
analysis of data by the survey of 80 consumers and 20 retailers in the different areas of
Agra. The sampling method used is simple random sampling.

RESEARCH METHODOLOGY:

Research methodology helps us to know what type of research we want to conduct, to
know the size of the sample, to know the methods involved in the Research.

SAMPLE DESIGN:

In this research the research conducted is Descriptive Research because it is depends on
new findings.

76

4.3 SAMPLE SIZE:

The sample size for the research based on the customer opinion was 80 and the size of
the sample based on the opinion and experiences of the Retailers was 20.

This research involved a study, which was descriptive as well as explorative in
nature it basically aims at gathering data about consumer preference for cola
drinks.

Source of data collection

Two source are used for data collection

 Primary data- Questionnaire , Direct interview.
 Secondary data- Websites, Company record.

SAMPLING AREA - Agra City.

SAMPLE SIZE- 100 consumers

SAMPLING TECHNIQUE - Simple Random Sampling.

DURATION OF RESEARCH-45 Days

77

CHAPTER-5

DATA
INTERPRETATION

78

GENDER OF CONSUMER

MALE 80%

FEMALE 20%

FEMALE
20%

MALE
80%

In this research 80% respondent are male and 20% respondent are female.

79

AGE GROUP OF CONSUMER

Below 20 25%

21-30 40%

31-50 25%

ABOVE 10%

0-20 21-30 31-50 ABOVE

10%
25%

25%

40%

80

During research 40% respondent are between 21-30year old,25% respondent are
below 20 year, 25% respondent are between 31-50 year and 10% respondent is
above 50 year

PREFERENCE OF SOFT DRINKS

Yes 96%
No 4%

NO
4%

YES
96%

Most of the respondent like the soft drinks that is 96%

81

FREQUENCY OF CONSUMPTION IN A WEAK

Daily 18%
2-3 times 41%
4-5times 26%
Once in a week 15%

30%
26%
25% 24%

20% 18%

15%
15%

10%

5%

0%
Daily 2-3 Times 4-6 Times Once in a week

Most of the respondent drunk a cola drink 4-6 time in a weak that is 26%.

82

PREFERENCE TO THE BRAND

Pepsi 40%
Coke 60%

60.00%

40.00%

Pepsi Coke

Most of respondent prefers coke brand for cola drink that is 60%

83

FACTOR TO GIVE THE PREFERENCE

Taste 75%
Price 10%
Packaging 5%
More Popular 10%

75.00%

10.00% 10.00%
5.00%

Taste Price Packaging More popular

75 % respondent select cola drink due to the taste

84

MARKETING STRATEGIES OF COMPANY AFFECT THE SALES

Yes 70%
No 30%

30.00%

70.00%

70% respondent think marketing strategy of company affects the sales.

85

FORM OF MARKETING STRATEGIES

Television advertisement 50%
News paper advertisement 5%
Sales promotion 25%
Outdoor advertisement 20%

telivision adv. Newspaper adv. Sales promotion Outdoor adv.

20%

50%

25%

5%

Television advertisement is more affective followed by sales promotion.

86

CHANGE THE BRAND ON THE BASIS OF PRICE
REDUCTION

YES 20%
NO 80%

20.00%

Yes
No

80.00%

Most of the respondent remains with brand if price will get reduced that is 80%.

87

MORE EFFECTIVE ADVERTISMENT

PEPSICO 40%
COKE 60%

COKE CO. PEPSI CO.

40.00%

60.00%

Most of respondent think coke advertisement is more effective than Pepsi that is
60%.

88

INNOVATIVE AND EXCITING OFFER

COKE CO. 40%
PEPSI CO. 60%

COKE CO. PEPSI CO.

40%

60%

PepsiCo provide innovative and exciting offer than coke that is 60%.

89

CHAPTER- 6

FINDING &
RECOMMENDATION

90

6.1 FINDINGS AND ANALYSIS

In this research 80% consumer are male and 20% consumers are female of
Agra city. They are different age groups. 25% consumer is below 20 years,
40% consumers are 21-30 years, 25% consumers are 31-50 years and 10%
consumers are above 50 years. By the questionnaire and personal interview
the followings results are found:

 Most of the people like to drink cola drinks.
 Thums up is the most preferable product into the soft drink which is available in
market.
 The main factor is Taste to choosing the soft drink. 75% consumer select soft
drink on the basis of Taste.
 Most of consumer thinks marketing strategy of company affects the sales of
product.
 20% people may change the brand on the basis of price reduction.
 Celebrities have a great effect on people consuming cold drinks.
 In terms of innovative and exciting offers Pepsi co leads coca-cola.
 Television came out to be most effective for aid campaigns as respondent of all
age groups watch TV.
.

91

6.2RECOMMENDATIONS

Soft drinks are an impulse product. When a person is thirsty, he would first think of
water or tea. The Indian population is the largest in the world today, there can be no other
country in the world, which provides so much of an opportunity for the soft-drink
manufacturers. The various

In accordance with the findings of the research I would like to give some suggestions to
the company to improve its position in the market and to increase its market share.

 new schemes should be given to the retailers to promote its products
 There should be direct communication with the consumer.
 Proper budget should be allowed to promote the products of coca-cola.
 It should maintain its quality because it wins the consumer trust.
 Rural area should also be given proper consideration.
 It should also start home delivery system in the full area.
 companies should increase brand extinction with different flavor because Indian
consumer mainly give the value to the taste
 Celebrities playing a main role for marketing of cola drinks.

92

6.3 LIMITATIONS

 Some of the respondent refused to fill the questioner.
 During the time of interview some respondent are confused to come up with
real answer.
 Small sample size.
 Limitation of time.
 The survey is conducted in few area of Agra city; hence the result may vary in
other parts of the city.

The finding is based on the survey conducted in the month of July and August.

93

REFERENCES

Journals

1. Samuel M. McClure, Jian Li, Damon Tomlin, Kim S. Cypert, Latané M.
Montague, and P. Read Montague: "popularity of coca cola vs. Pepsi.‖
Published in Neuron, Volume 44, Number 2, October 14, 2004, pages 379–
387.
2. Food Quality and Preference Volume 19, Issue 8, Pages 719-726By
Stephen Daniells, 07-Oct-2008
3. Beverly J. Tepper and Amy C. Trail Journal of Food Science and
Technology,15 September 1998.
4. Davis Woman‟ s Journal of Food Science and Technology, July 31, 2007
5. Journal of IMS, Vol. 5 no.1, Jan-June 2008

Books:

1. Marketing management- By Philip Kotler
2. Research-methodology- By C R Kothari
3. Research Methodology: A Step-by-Step Guide for Beginners-By Ranjit
Kumar

WEBSITES:

1. www.google.com
2. www.coco-colaindia.com
3. www.pepsi.com

94

4. www.pepsico.com
5. http://iplj.net/blog/archives/2978
6. www.wikipedia.org

ANNEXURE

95

QUESTIONNAIRE

Name________________________ Age___________

Address_____________________ Contact no_________

A. DO YOU LIKE A COLA DRINK?

Yes
No

B. FREQUENCY OF CONSUMPTION OF COLA DRINK IN A WEEK?
Daily
2-3 Times
4-5 Times
Once in a Week

C. WHICH BRAND ARE YOU PREFERANCE TO THE BRAND

Coke
Pepsi

D. WHICH PARTICULAR RATE TO GIVE THE PREFERANCE?
Taste
Price
Packaging
More Popular

96

E. ARE THE MARKET STRATEGY OF COMPANY EFFECT ITS SALES?
Yes
No

F. WHICH FORM OF MARKET STRATIGES IS MOST EFFECTIVE IN THE
MARKET?

Television Advertisement
News paper Advertisement
Sales Promotion
Outdoor Advertisement

G. WILL YOU CHANGE THE BRAND ON THE BASIS OF PRICE
REDUCTION?

Yes
No

H. WHICH BRAND MOST EFFECTIVE IN ADVERTISMENT?

Coke
Pepsi

I. WHICH BRAND HAS CREATIVE AND APPEALING ADVERTISEMENT
OF THE COLA COMPANY?

Coke co.
Pepsi co.

97

J. WHICH BRAND HAVING THE INNOVATIVE AND EXCITING OFFERS?

Coke co.
Pepsi co.

ANY SUGGESTION (IF ANY)

We assure you that the above information will be kept confidential and will be used for
academic purpose of our MBA summer training project report.

98

Competative study between coke vs. pepsi

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