Advertising and promotional schemes of cocacolaIntroduction : introduction In this age of servers competition, promotion is the only marketing tools which can be manipulated easily. The reasons is that the present era is of information management. And the company which communicates well succeeds.The purpose of my study is to test effectiveness of the promotional activities of coca-cola India inc in the present globalised economy of India. To test the effectiveness of promotional activities of coca- cola I conducted exhaustive study and analysis of market conditions of soft drink during my training in Gurgaon. And I found that promotional activities conducted by the company are satisfactory but they need certain improvement.

STATEMENT OF PROBLEM : STATEMENT OF PROBLEM As we know that sales promotion plays a very critical role in the field of every business organisastion as well as the life of a consumer,both have to take suitabale decisions regarding the selling or purchasing the products.The company gives various promotional schemes to their customer,retailers,distributors according to their pre set plans or market conditions so that they will not jump to other products. The main problem faced by me during summer training was time limitation i.e. six weeks which is not sufficient to know every things about the COCA-COLA promotional strategies.

OBJECTIVES : OBJECTIVES To see how much the promotional activities are successful in popularizing the coca cola and pulling the consumers towards the company. To compare the effectiveness of coca- cola's "Promotional activities" with other soft drinks. To see that whether the final consumer of coca- cola and intermediaries are getting proper benefits from sales promotional activities or not. To appraise the personal selling efforts directed by Coca-Cola. To suggest measures to further improve the promotional activities of Coca-Cola and make it more competitive.

SCOPE OF THE STUDY : SCOPE OF THE STUDY The main concern of my study is to have knowledge and an idea about the Marketing strategies of COCA COLA and suggest measure for improving promotional activities. The training gave me a chance to have practical experience and also the realize theoretical knowledge which I am getting in 'M.B.A'.

CONCEPTUALISASTION Theoretical Aspect of Sales Promotion : CONCEPTUALISASTION Theoretical Aspect of Sales Promotion Objective of sales promotion  1. To stimulate the demand by popularizing product 2. To face competition effectively. 3. To keep the memory of products in mind of consumers. 4. To supplement the personal selling & advertising 5. To establish the large market segment

Practical aspects : Practical aspects PROMOTIONAL SCHEMES 1. Limca Launches 'Laptop Ki Barish' 2.Coca-Cola Cricket 3.Coca-Cola Food Mela 5.Coca-Cola Pet Promotion 6.Scheme 7.Promotion through restaurants and cinema hall holdings

Industry profile : Industry profile Soft drink market demand is very strong in all over the world. Now there are two major company of Soft drinks Coca-Cola & PepsiCo which are competitors to each other. PepsiCo brands are available in nearly 200 countries and territories and generate sales at the retail level of about $92 billion. Some of PepsiCo's brand names are more than 100-years-old. PepsiCo was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay. Tropicana was acquired in 1998 and PepsiCo merged with The Quaker Oats Company, including Gatorade, in 2001. The world's largest beverages company Coca-Cola begins more than century ago. The Coca-Cola Company's world head quarters in Atlanta Georgia (U.S.A). Formation of Coca-Cola beverages stated in a very simple way, but today it has spread world-wide. It has a wonderful history and exciting future. Despite having many ups and down in its way it went on ahead and today it is a house hold name and a favourite among its customers.

Company profile : Company profile Coca- Cola (An USA base Company) was the first soft drink company in India which stated in business in 1958, Gradually, it becomes the part and parcel of the life of the urbanities particularly in Bombay. CORE BRANDS

Research Methodology : Research Methodology Research Design Research is exploratory as well as comparative analysis in nature.

Data collection and sampling plan : 

Data collection and sampling plan Primary data Secondary data SAMPLING:-Systematic random sampling Sample Size Number of consumers:-100 Number of retailers:-100 Number of distributors:-10

SALES PROMOTION TECHNIQUES OF COMPANY : SALES PROMOTION TECHNIQUES OF COMPANY Good Advertising. Effective Incentive Policy. Quality. Wide & Deep Distribution System. Attractive packaging. Allotting SGA’S (Refrigerator, Chest cooler, Table Umbrella, Chairs etc.) to retailers. Decorating Retailers shop by display board, dealer’s board etc.

Data Analysis Conclusion : Data Analysis Conclusion Q1:-Which of the following promotional schemes you have come across so far? Interpretation The results show that price off and extra quantity is the two main offers/schemes which consumers have came across at the time of purchase. It will help the manufacturers and marketers too how too launch their new products in the market with which schemes.

Q 2:-Which medium do you feel is suitable to promote the various promotional schemes? : Q 2:-Which medium do you feel is suitable to promote the various promotional schemes? Interpretation:-The above result shows TV as the best media to market the product which will cover majority of the viewer ship

Q:-3What do You think about the Sales promotional Schemes offered to you by the company. : Q:-3What do You think about the Sales promotional Schemes offered to you by the company.

Q:4 Do you think that more Sales promotional Schemes are needed for distributors of retailers. : Q:4 Do you think that more Sales promotional Schemes are needed for distributors of retailers. Interpretation:-From the above diagram, it reveals that 7 Distributors think that more Sales promotional Schemes are needed for distributors of retailers and 3 Distributors think that more Sales promotional Schemes are not needed for distributors of retailers like 50%off scheme

Q:-5 What kind of Promotional activities affect sales mostly ? : Q:-5 What kind of Promotional activities affect sales mostly ? Interpretation:-free bottle scheme one get one free affect the coca-cola sales mostly

FINDINGS : FINDINGS Advertising campaign of coca cola now can see easily on villages like sign board, hoardings on highway, banners @ outlets   Personal - selling assistance gives to them by the company & more POPs. Advertising materials and refiregerators from Coca- Cola has also good result on sales. the sales promotion techniques like- Discount to monopoly retailers & schemes on products is good.

SUGGESTIONS : SUGGESTIONS Free gifts must be distributed among retailer who sells higher quantity of Coca- Cola product. When new promotional scheme started, information about the promotional scheme. Must be published in newspaper and advertisement of the promotional scheme be transmitted on television so that large number of consumer know about the promotional scheme. Company must make new strategy to fight local cold drinks brands

LIMITATIONS : LIMITATIONS Limitation of time. The project report is conducted only in gurgaon, hence the results may vary in other parts of the state/cities. The findings are based on the survey conducted in the month of June to August, the results may vary in other months. The responses may vary as some people did not want to come up with real answers. And like any other research the limitation of personal bias of respondents limits the scope of the study

COKE VS PEPSI

2. INTRODUCTION1. INTRODUCTION1.1 INTRODUCTION ABOUT

TOPICIn the modern culture consumption of soft drinks particularly among

younger generationhas become very popular. Soft drinks in various flavors

and tastes are widely patronizedby urbane population at various occasions

like dinner parties, marriages, social getogether, birthday calibration etc.

children of all ages and groups are especially attractedby the mere mention

of the word soft drinks. With the growing popularity of soft drinks,

thetechnology of its production, preservation, transportation and or

marketing in the recentyears has witnessed phenomenal changes. The so-

called competition for this product inthe market is from different other

brands. Mass media, particularly the emergence oftelevision, has

contribute to a large extent of the ever growing demand for soft drinks

theattractive jingles and sport make the large audience remember this

product at all times. 12

13. It is expected that with the sort of mass advertising, reaching almost

the entire countryand offering various varieties annual demand for the

product is expected to rise sharply inthe 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 industrymay be making many tactical maneuvers in

market all the time. They may introduce orinitiate an aggressive promotion

campaign or announce a price reduction. The marketingman of the firm

has to meet all these maneuver and care of competitive position of hisfirm

and his brand in the market. The only rout open to him for achieving this is

themanipulation 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.

basedCadbury Schweppes. Through the globe, these major players have

been battling it out fora bigger chunk of the ever –growing soft drink

market. Now this battle has been evolvedup to India too with the arrival of

these three giants. Soft drink industry is on amazinggrowth; ultimately

these are only one person who will determine their fortunes. The

Indianconsumer 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 thetwo largest players. Several factors contribute to this

profitability, and these factors alsohelp to show why the profitability of the

concentrate production side of the industry hasbeen so much greater than

the bottling side. Over the years the concentrate producershave

experimented with different levels of vertical integration, and although it

has notnecessarily been clear which have been more successful

historically, some decisioncriteria can be developed to help determine if

and when complete vertical integration isnecessary.The World most

popular soft drinks is on duel! Pepsi and Coca Cola, it‘s the battlebetween

the red can soft drinks and the blue can soft drinks! So this 2 drinks taste

almostthe 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 13

14. Dave Chapels promoted both drinks during the same year. The soft

drink industry hasbeen a profitable one in spite of the ―cola wars‖ between the two largest players. Severalfactors contribute to this

profitability, and these factors also help to show why theprofitability of the

concentrate production side of the industry has been so much greaterthan

the bottling side. Over the years the concentrate producers have

experimented withdifferent levels of vertical integration, and although it has

not necessarily been clear whichhave been more successful historically,

some decision criteria can be developed to helpdetermine if and when

complete vertical integration is necessary.The concentration in the industry

(Coke and Pepsi have 73% in 1994) would suggest thatinternal rivalry is

somewhat less than if there were many players of equal size. Althoughthe

competition between Coke and Pepsi has become fiercer over time, they

traditionallycompeted primarily on advertising, promotion and new products

rather than price(although the explosion of new brands did eventually lead

to some price competition). Theproducts are similar but not homogeneous

and buyers are fairly brand loyal. Retail buyershave significant costs for

switching from the major brands since those are responsible forbringing

people into the store. Flattening and potentially declining U.S. demand may

be afactor which increases internal rivalry and encourages more price

competition and thuserosion of profits.The ultimate battle of two major

players competing for the top spot in a massive globalmarket. The cola and

carbonated beverage industry reaches to virtually all corners of theplanet,

and the vast majority of the market share belongs to the two giants Coke

andPepsi. With such a huge market and enormous revenue potential in an

industry such asthis, 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 isbetter. There is really no arguing the fact that the two

soft drinks are very similar in termsof flavor. The flavor difference between

them is subtle at most, so it is interesting that somany people have such

strong feelings about which one is superior.Global market analysis on the

cola industry shows that Coca Cola typically has a slightadvantage 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 14

15. wide range of data shows that Coca Cola owns somewhere

between60-63% of the Indianmarket, while Pepsi gets in the neighborhood

of 30%. Of course different studies willproduce different results so it is

difficult to get a truly accurate picture. The one thing thatis 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

COMPANYThe Coca-Cola Company exists to benefit and refresh everyone

it touches. Type Public(NYSE:KO) Industry Beverage Founded 1886, USA

15

16. Coca-Cola, the product that has given the world Headquarters Atlanta,

Georgia , USAits best- known taste was born in Atlanta, Area served

WorldwideGeorgia on May 8, 1886. Coca-Cola Companyis the world‘s

leading manufacturer, Marketer Key People Muhtar Kentand distributor of

non-alcoholic beverage (Chairman and CEO)concentrates and syrups,

used to producenearly 400 beverage brands. The corporate Products Coca

Colaheadquarters are in Atlanta, with local Carbonated Soft

Drinksoperations in over 200 countries around theworld. The Coca-Cola

Company began building Waterits global network in the 1920s.Coca-Cola

Other non alcoholicsystem has successfully applied a formula on a

beveragesglobal scale ―Provide a moment of refreshmentfor small

amount of money a billion times a day‖. Employees 92,400 (October 2009)

Website Coca-cola.comWhen launched Coca-Cola two key

ingredientswere cocaine (benzoyl methyl ecgonine) and caffeine. The

cocaine was derived from thecoca leaf and the caffeine from kola nut,

leading to the name Coca-Cola (the "K" in Kolawas replaced with a "C" for

marketing purposes Coca-Cola often referred to simply asCoke (a

registered trademark of The Coca-Cola Company in the United States

sinceMarch 27, 1944)was invented in May 1886 by Dr. John Stith

Pemberton in Atlanta,Georgia. The name "Coca-Cola" was suggested by

Dr. Pembertons bookkeeper, FrankRobinson. He penned the name Coca-

Cola in the flowing script that is famous today.Coca-Cola was first sold at a

soda fountain in Jacobs Pharmacy in Atlanta by WillisVenable. The first

sales were at Jacobs Pharmacy in Atlanta, Georgia, on May 8, 1886. Itwas

initially sold as a patent medicine for five cents a glass at soda fountains,

which werepopular in the United States at the time due to the belief that

carbonated water was goodfor the health. 16

17. 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 theAtlanta Journal. The company was formed to sell

three main products: PembertonsFrench Wine Cola (later known as Coca-

Cola), Pembertons Indian Queen Hair Dye, andPembertons Globe Flower

Cough Syrup.[The Coca-Cola formula and brand was boughtin 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

thesecond quarter of 2005 they planned to launch a Diet Coke product

sweetened with theartificial sweetener sucralose, the same sweetener

currently used in Pepsi One. OnMarch 21, 2005, it announced another diet

product, Coca-Cola Zero, sweetened partlywith a blend of aspartame and

acesulfame potassium. On July 5, 2005, it was revealedthat Coca-Cola

would resume operations in Iraq for the first time since the Arab

Leagueboycotted 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 in1993. 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 inAmsterdam, and has been an

Olympics sponsor ever since. Special aluminum bottledesigned exclusively

for the Vancouver 2010 Olympic Winter Games Torch Relay. Thiscorporate

sponsorship included the 1996 Summer Olympics hosted in Atlanta,

whichallowed Coca-Cola to spotlight its hometown. 17

18. Since 1978, Coca-Cola has sponsored each FIFA World Cup, and

other competitionsorganized by FIFA. In fact, one FIFA tournament trophy,

the FIFA World YouthChampionship from Tunisia in 1977 to Malaysia in

1997, was called "FIFA — Coca ColaCup".In 2010 it was announced that

Coca-Cola had become the first brand to top £1 billion inannual UK grocery

salesIngredients 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. LOGOThe

famous Coca-Cola logo was created by John Pembertons bookkeeper,

Frank MasonRobinson, in 1885. Robinson came up with the name and

chose the logos distinctivecursive script. The typeface used, known as

Spenserian script, was developed in the mid19th century and was the

dominant form of formal handwriting in the United States duringthat period.

18

19. Robinson also played a significant role in early Coca-Cola advertising.

His promotionalsuggestions to Pemberton included giving away thousands

of free drink coupons andplastering the city of Atlanta with publicity

banners and streetcar signs.The World’s Most Powerful BrandInterbrain‘s

Global Brand Scorecard for 2003 ranked Coca-Cola the #1 Brand in

theWorld, estimated its brand value at $70.45 billion .The ranking‘s

methodology determineda brand‘s valuation on the basis of how much it

was likely to earn in the future, distillingthe percentage of revenues that

could be credited to the brand, and assessing thebrand‘s strength to

determine the risk of future earnings forecasts. Considerationsincluded

market leadership, stability, and global reach, incorporating its ability to

crossboth geographical and cultural borders.From the beginning, Coke

understood the importance of branding and the creation of adistinct

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 valuesof each generation and

established Coke as the authentic, relevant, and trustedrefreshment of

choice across the decades and around the globe.1.2.1 BUSINESS MODEL

OF COMPANY 19

20. 1.3 SWOT ANALYSIS 20

Coca-cola needs a proper planned route of operation. 21

WEAKNESSES: Its new launched product AAM PANA which gives desi

taste to Indians. People trust coca-cola. A wide range of different

tastes. Maintains high quality. Thumbs up is much stronger in taste

compared to Pepsi. Coca-cola has many stars endorsing its products.

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

STRENGTHS: ThreatsSWOT analysis of the coca-cola company can be

understood as follows: Opportunities Weaknesses Strength 21.

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

THREATS: 22 Can launch many new schemes to defeat Pepsi from the

market (like a home delivery scheme was launched in Jaipur House

area.) Can launch new traditional Indian products. Good semi urban

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

OPPORTUNITIES: Retailers don‘t support its low budget schemes.

Proper quality control methods are not used. Its name brand coke is not

much popular among people. It has very low budget for promotion and

advertisement of its products.22.

Increase in the sales of other fruit juices or health drinks.1.4 OBJECTIVES

OF STUDY 23 The research which is conducted by some institutes

regarding pesticides in soft drinks. It has an intense competition with

Pepsi. 23.

To know which brand advertisement mostly liked by the target

customers.1.5 NEED OF STUDY 24 To find out the factor(s) that

influences the consumer(s) consumption of soft drinks. To study the

preference of the people for soft drinks. To study the performance of

coca cola. 24.

25. The main aim of this research study is to analyze the preference of

people (of differentage group) on consumption pattern of soft drink and

consumer awareness about softdrinks.The need of the study arises

because with the help of this study company can get theinformation about

the brand awareness, position of its brand in the market, sales

andpromotion policies . So that, after understandings the customers and

retailers‘ opinionabout the company helps the company to change its

marketing strategies to focus on thecustomers and helps to fight against

the competitors. With the help of this study thecompany can improve its

promotion policy and increase its market share and profit. 25

26. CHAPTER- 2 REVIEW OFLITERATURE 26

27. 2. REVIEW OF LITERATUREAccording to the Webster‘s dictionary,

literature is ―the writings that pertains towardsparticular branch of learning

and printed matter and review means to examine again, tostudy

carefully.‖Therefore literature review is the printed matter which we study

very carefully during ourwork. 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 softdrinks reveal that

knowing which drink they taste affects their preference and

activatesmemory-related brain regions that recall cultural influences.The

knowledge about sales and promotion principles is gained from the book

―Theprinciple of marketing‖ written by Philip Kotler.There were many

researches which were conducted to determine the awareness thecoca

cola .In 2009 a research was conducted in Delhi region.. In this research it

wasfound 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 theglobal soft drinks market increased by

8.59% in 2009. The US was the top country byretail sales as well as by

number of new product launches, followed by Japan whichranked second

in both categories. Globally, India ranked 25th in terms of retail sales

and13th 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 iscomposed of persons below 30 years of age, the

per-capita consumption of soft drinks inIndia remains very low, at

approximately at 5.2 liters against the world average of nearly 27

28. 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 formarket growth in India. Coca-Cola

remains the market leader in the carbonates categorywith a market share

of more than 60% in the Indian market, followed by Pepsi with around35%.

In the bottled water category, Parle‘s Bisleri andKinley from Coca-Cola are

the leading players. The packaged juices market in Indiacontinues 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 thepast few years. Red Bull with its strong dominance of

the energy drinks‘ category, whichis the largest segment in the functional

drinks category, is the market leader in thefunctional drinks market.Coca-

Cola had built its reputation on the consumer-loving products it sells. This

is whythey don‘t want its main rival, Pepsi, free-riding on that reputation.

Coca-Cola made theaverage glass bottle famous. Now, Pepsi just wants to

take advantage of Coca-Cola‘sgoodwill and reputation just to boost its own

sales. Why else would Pepsi want to sell asimilar glass bottle? Although

Pepsi makes a strong case, this fact alone could destroyPepsi‘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 inFMCG products, increasing competition, more due to

globalization, is motivating manycompanies to base their strategies almost

entirely on building brands. Brand preferencemeans to compare the

different brands and opt for the most preferred brand. This

brandpreference is influenced by various factors.According to this study

many factors were find out for preferring a brand like:Brand personaBrand

constancyBrand loftinessBrand value. 28

29. In the identification of factors affecting the brand preference, it was

concluded that brandpersona is the most effective factor that affects the

brand preference. This brand personadeals with the personality aspects or

the external attributes of brand, thus it can be saidthat consumer prefer any

brand by looking at the external attributes of a brand.2.2 Bombarding the

senses: StudyBy choosing to formulate a new beverage, the researchers

noted that the new productwould need to be differentiated by improving the

sensory characteristics. Four factorswere identified for the formulation: four

color intensities), three flavorings, two label types(soft versus hard), and

two pack sizes (standard versus oversize). By using bothquantitative

(hedonic testing) and qualitative (focus groups) approaches, the

researchersfound that the main factors which drive consumer preference

for this concept are colorintensity and flavoring‖. Indeed, color intensity

accounted for 43 per cent and flavor 32 percent of the consumers‗ overall

liking. ―Pack size and label type are taken into account bythe consumer to

a lesser extent, they added. This methodology of a qualitative

screeningassociated to a conjoint analysis on relevant sensory attributes

has shown goodperformances 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

drinksThis study examined the relative contributions of taste and health

considerations onconsumer liking and purchase intent of cola drinks. Eight

types of commercial cola drinkswere evaluated by 305 adult consumers

who also completed a brief questionnaire on foodhabits. Data were

analyzed using factor analysis. Results revealed that purchase intent

ofcola drinks was strongly related to degree of liking and to several key

sensory attributesincluding saltiness, drinks flavor and greasiness. These

variables emerged as the firstfactor in the analysis, suggesting that

consumers perceive these characteristics as beingmost important in their

choice of cola drinks. Factor 2 described a health dimension andwas

related to respondents attitudes toward fat in the diet. Factor 3 comprised

two 29

30. remaining sensory attributes (color and crunchiness), which apparently

were of minorimportance to the respondents. These data suggest that in

spite of current concern aboutreducing dietary fat, health remains

secondary to taste in the selection of cola drinks forconsumers in this

population.2.4. Paired preference tests using placebo pairs and different

responseOptions for cola drinks, orange juices: AbstractPreference tests

were performed for varieties of cola drinks, orange juices and usingthree

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. Thedifferent stimuli to be assessed were

presented in pairs, but putatively identical stimuliwere also presented as a

"placebo" pair. Performance on the placebo pair with identicalstimuli

provided a measure of the hidden demand characteristics of the test

protocol. Thepresentation of the different pairs provided a measure of

preference accompanied bysuch hidden demand effects. Comparison

between the two allowed a better measure ofpreference per se. The order

of presentation of the identical and different pairs did showoccasional slight

evidence of contrast effects. For the placebo "identical" pairs, a majorityof

consumers reported false preferences. Liking questions with the hedonic

and hybridscales elicited fewer false preferences than preference

questions with the pairedpreference protocol. Yet, the effects tended to be

slight. The 6-point hedonic/purchaseintent scale exhibited the fewest false

preferences in the placebo condition, and this wasbecause of its fewer

categories rather than any cognitive strategy change elicited by itsdifferent

labels. 30

31. CHAPTER- 3SOFT DRINKINDUSTRY 31

32. 3.1 SOFT DRINK INDUSTRY: AN OVERVIEWIt all began in 1886,

when a tree legged brass kettle in Hohn Styth pemberton‘s backyardin

Atlanta was brewing the first P of marketing legeent Unaware the

pharmacist has givenbirth to a caramel colored syrup, which is now the

chief ingredient of the world‘s favoritedrink. The syrup combined with

carbonated the soft drink market. It is estimated that thisdrink 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 the1950‘s

Colas was a daily consumption item, stored in house hold fridges. Soon

were bornother 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

theever growing cold drink market, now this battle has begun in India too.

India is now the 32

33. part of cold drink war. Gone are days of Ramesh Chauhan, India‘s one

time cola king andhis 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 Overlocal competition, the two

American Cola giants have cleared up the arena and arepacking 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 anenormous potential in his country where swigging a

carbonated beverage is stillconsidered a treat, virtually a luxury.

Consequently, by world standards India‘s per capitaconsumption of cold

drinks as going by survey results is rock bottom, less than overNeighbors

Pakistan & Bangladesh, where it is four times as much. Behind the hype, in

aneffort invisible to consumer Pepsi pumps in Rs 3000 crores (1994) to

add muscle to itsinfrastructure in bottling and distribution. This is apart from

money that company‘sfranchised bottles spend in upgrading their plants all

this has contributed to substantialgains in the market. In colas, Pepsi is

already market leader and in certain cities likeBanaras, 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

ofthe 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. Thisimage turnaround is no small achievements, considering

that since it was establishedin1989, taking the hardship route prior to

liberalization and weighed down by exportcommitments.Now, at present as

there are three major players coke, Pepsi and Cadbury and there isstiff

competition between first two, both Pepsi and coke have started,

sponsoring localevents and staging frequent consumer promotion

campaigns. As the mega event of thiscentury has started, and the

marketers are using this event – world cup football, cricketevents and

many more other events. Like Pepsi, coke is picking up equity in its bottles

toguarantee their financial support; one side coke is trying to increase its

popularity througheat Food, enjoy Food. Drink only coca cola. Eat cricket,

sleep cricket. Drink only cocacola. Eat movies, sleep movies. Drink only

coca cola. 33

VISIBILITYVisibility is the presence felt, if any outlet has a particular brand

of soft drink say- Pepsicola and this brand is not displayed in the outlet,

then its availability is of no use. The softdrink must be shown off properly

and attractively so as to catch the attention of theconsumer immediately

Pepsi achieves visibility by providing glow signboards, hoarding, 34

AVAILABILITYAvailability means the presence of a particular brand at any

outlet. If a product is nowavailable at any outlet and the competitor brand is

available, the consumer will go for itbecause generally the consumption of

any soft drink is an impulse decision and notpredetermined one. Range

Cooling Visibility Availability 34. On the other side of coin Pepsi has

introduced AMITABH BACHHAN for capturing thelemon 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 realcrush

in the soft drink market. with launch of the carbonated organize drink

Crush, fewyear ago in Banaras ., the first in a series of a launches ,

Cadbury Schweppes beverageIndia (CSBI) HAS PLANNED:- The world

third largest soft drink marketers all over thecountry. CSBI wholly owned

subsidiary of the London based $ 6.52billion. CadburySchweppes is hoping

that crush is going well and well not suffer the same fate as theRs.175

crore Cadbury India‘s apple drink Apella. CSBI is now with orange (crush),

andSchweppes soda in the market.As orange drinks are the smallest of

non-cola categories that is Rs. 1100 crore marketswith 10% market share

and cola heaving 50% is followed by Lemon segment with25%.The

success of soft drink industry depends upon 4 major factors viz.

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. 35 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.35. calendars etc. to the

outlets. It also includes various stands to display Pepsi and other flavors of

the company.

36. 3.2 COCA-COLA3.2.1 COCA-COLA IN INDIA―Coke would rather be

long term wiser, than being short term smarter‖ Abhraham ninan Director

External Affairs COCA-COLA INDIAIndia is home to one of the most

ancient cultures in the world dating back over 5000years. At the beginning

of the twenty-first century, twenty-six different languages werespoken

across India, 30% of the population knew English, and greater than 40%

wereilliterate. At this time, the nation was in the midst of great transition

and the dichotomybetween the old India and the new was stark. Remnants

of the caste system existedalongside the world‘s top engineering schools

and growing metropolises as thehistorically agricultural economy shifted

into the services sector. In the process, India hadcreated the world‘s

largest middle class, second only to China. 36

37. A British colony since 1769 when the East India Company gained

control of all Europeantrade in the nation, India gained its independence in

1947 under Mahatma Ghandi and hisprinciples of non-violence and self-

reliance. In the decades that followed, self-reliancewas taken to the

extreme as many Indians believed that economic independence

wasnecessary to be truly independent. As a result, the economy was

increasingly regulatedand many sectors were restricted to the public

sector. This movement reached its peak in1977 when the Janta party

government came to power and Coca-Cola was thrown out ofthe

countryCoca-Cola was the leading soft drink brand in India until 1977 when

it left rather thanreveals its formula to the government and reduces its

equity stake as required under theForeign Exchange Regulation Act

(FERA) which governed the operations of foreigncompanies 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 nations topsoft-

drink brands and bottling network. Coke‘s acquisition of localPopular Indian

brands including Thums Up (the most trusted brand in India21),

Limca,Maaza, Citra and Gold Spot provided not only physical

manufacturing, bottling, anddistribution assets but also strong consumer

preference. This combination of local andglobal brands enabled Coca-Cola

to exploit the benefits of global branding and globaltrends in tastes while

also tapping into traditional domestic markets.Leading Indian brands joined

the Companys international family of brands, includingCoca- Cola, diet

Coke, Sprite and Fanta, plus the Schweppes product range. In 2000,

thecompany launched the Kinley water brand and in 2001, Shock energy

drink and thepowdered concentrate Sunfill hit the market. While The Coca-

Cola Company is a globalcompany with some of the worlds 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 Companys presencein India was cemented in

November that year in a deal that gave Coca-Cola ownership ofthe nations

top soft-drink brands and bottling network.Coca-Cola India has made

significant investments to build and continually improve its 37

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. 38 A network of 29 contract-packers also manufactures a

range of products for the Company The Coca-Cola system in India

comprises 27 wholly-owned company-owned bottling operations and

another 17 franchisee-owned bottling operations. Virtually all the goods

and services required to produce and market Coca-Cola locally are made

in India In India, we indirectly create employment for more than 125,000

people in related industries through our vast procurement, supply and

distribution system In 2003, Coca-Cola India pledged to invest a further

US$100 million in its operations Coca-Cola is one of the countrys 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. During the past

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

India 38. business in India, including new production facilities, wastewater

treatment plants, anddistribution systems and marketing equipment

Ranking: We own 4 of the world‘s top 5 non-alcoholic sparkling beverage

brands: Coca-Cola, Diet Coke, Sprite and Fanta. 39 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. The complete manufacturing process had a

documented quality control and assurance program including over 400

tests performed throughout the process.39.

40. 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 companyBeverage industry in India: a brief insight:-In

India, beverages form an important part of the lives of people. It is an

industry, in whichthe players constantly innovate, in order to come up with

better products to gain moreconsumers and satisfy the existing consumers.

40

41. The soft-drink industry comprises companies that manufacture

nonalcoholic beveragesand carbonated mineral waters or concentrates

and syrups for the manufacture ofcarbonated 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 noncarbonated category.Cola products account for over 60% of the

total soft drink market and include popularbrands such as Coca-Cola,

Pepsi, and Thumps up etc. Non-cola segment constitutes forover 35% of

the market. 41

Profit: Maximizing return to shareowners while being mindful of our overall

responsibilities. 42 Partners: Nurturing a winning network of partners and

building mutual loyalty. Portfolio: Bringing to the world a portfolio of

beverage brands that anticipate and satisfy peoples desires and needs.

Planet: Being a responsible global citizen that makes a difference.

People: Being a great place to work where people are inspired to be the

best they can be. To Create Value and Make a Difference...everywhere

we engage.VISIONTo achieve sustainable growth, we have established a

Vision with clear goals: To Inspire Moments of Optimism...through our

brands and our actions. To Refresh the World ...in body, mind, and spirit.

42. 3.2.2 MISSION AND VISIONMISSIONEverything we do is inspired by

our enduring……

43. 3.2.4 BRANDS OF COKECoca-colaCoca cola is the most popular and

highest selling soft drinks in the history, as well as thebest known product

in the world. Coca-Cola has a truly remarkable heritage. From thehumble

beginning in 1886, it‘s now a flagship brand of the largest manufacturer,

marketerand distributor of the non-alcoholic beverages in the world.Diet

cokeWorlds Third Largest Selling Soft DrinkDiet Coke is for those who

want plenty of taste but no calories. Diet coke is also known asCoke light in

some countries.Thums upToday it is the largest selling soft drink brand in

India.Thums Up is known for its strong, fizzy taste and its confident, mature

and uniquelymasculine attitude. This brand clearly seeks to separate the

men from the boys.SpriteSprite 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 ofsoft drinks. Sprite

is a good product at cola and contains at lemon flavor. And preferred byall

age of people.FantaFanta the orange drink 43

44. Over the years Fanta has occupied a strong market place and is

identified as the "TheFun Catalyst".LimcaLimcas freshness is like no other-

lime n lemoniLime n lemoni Limca can cast a tangy refreshing spell on

anyone, anywhere. Derivedfrom Nimbu + jaisa hence Lime Sa, Limca has

lived up to its promise of refreshmentand has been the original thirst choice

of millions of consumers for over 3 decade.MaazaMaaza – the wholesome

family fun Mango. Imagine this delicious fruit, bottled. This iswhat Maaza is

all about. Maaza- the most loved beverage brand in India. It provides

themost authentic experience of rich, juicy mangoes—anytime, anywhere!

Minute Maid NimbuJust Like Home-made LemonadeA lemon drink with no

added preservative or colour, Minute Maid Nimbu Fresh offers arefreshing

drinking experience as close to homemade NimbuPaani as possible in

apackaged format. Nostalgia in a bottle, Minute Maid Nimbu Fresh offers

Ghar Ki YaadonKa Ras (memories of home-made lemonade) in every

sip.Minute MaidRefreshingly Orange Surprisingly Pulpy!Minute Maid – one

of the worlds largest juice and juice drink brands.KinleyWater you can trust

and be truly safe and pure.Kinley water understands the importance and

value of this life giving force. Kinley waterthus promises water that is as

pure as it is meant to be. 44

45. Kinley SodaIndias no.1 National Soda brand.With its unique taste and

formula Kinley Soda packs quite a punch 45

46. 3.2.4 COKE: BRANDS IN INDIA 46

47. 3.2.5 SLOGANS OF COCA-COLA1886 "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 drop1917 - 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 Sunlight1927

- Around the corner from anywhere.1928 - Coca-Cola ... pure drink of

natural flavors.1929 - The pause that refreshes.1932 - Ice-cold

sunshine.1937 - Americas favorite moment.1938 - The best friend thirst

ever had.1938 - Thirst asks nothing more. 47

48. 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 ofrefreshment, 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 theres Coke

theres 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 Coke1959 - Be really refreshed.1963 - Things

go better with Coke.1966 - Coke ... after Coke ... after Coke.1969 - Its the

real thing. 48

49. 1971 - Id like to buy the world a Coke. (basis for the song Id Like to

Teach the World toSing)1974 - Look for the real things.1976 - Coke adds

life.1979 - Have a Coke and a smile1982 - Coke is it!1985 - Americas Real

Choice1986 - Red White & You (for Coca-Cola Classic)1986 - Catch the

Wave (for New Coke)1989 - Cant 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 Happiness2010 - Twist The Cap To Refreshment2011

- Life Begins Here 49

50. 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!") 50

51. 3.3 PEPSICOPepsiCo is one the largest companies in the U.S. It

figures amongst the largest15companies 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 $20.92billion and Pepsi is

bottled in nearly 190 countries. PepsiCo is a world leader inconvenient

snacks, foods and beverages with revenues of more than $43 billion and

over198,000employees. Take a journey through our past and see the key

milestones thatdefine PepsiCo. PepsiCo is a world leader in the food chain

business. It consists of manycompanies amongst which the prominent

once are Pepsi-Cola, Frito-Lay and Pepsi FoodInternational. The group is

presently into two of the most profitable and profitable andgrowing

industriesnamely, beverages and snack foods. It has scores of big

brandsavailable in nearly 150 51

52. countries across the globe. The group has established for itself once of

the strongestbrands in various segments of its operations.The beverages

segment primarily markets its Pepsi, Diet Pepsi, Mountain Dew andother

brands worldwide and 7-UP outside the U.S. markets. These are

positioned in closecompetition 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 PepsiCostands at 6%. The segment is

also in the bottling plants and distribution facilities and alsodistributes the

ready to drink tea products of Lipton in North America. In a joint-

venturewith orient spray juice products PepsiCo also manufactures and

distributes fruit juices.The snack food division manufactures and distributes

and markets chips and othersnacks worldwide. The international

operations of this segment extend to the markets ofMexico, the UK and

Canada. Frito-Lay represents this segment of PepsiCo. Therestaurant

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 venturedinto restaurant business with Taco Bell,

KFC, Pizza Hut ended last year when they werespanned off from the

company. A packaged goods company comprised of Pepsi-ColaCompany

and Frito-Lay will continue to bear the PepsiCo name. The move

shouldenhance both corporations ability to prosper with their own fully

dedicated structure andmanagement team. 52

53. 3.3.1PEPSICO IN INDIAPepsiCo gained entry to India in 1988 by

creating a joint venture with the Punjabgovernment-owned Punjab Agro

Industrial Corporation (PAIC) and Voltas India Limited.This joint venture

marketed and sold Lehar Pepsi until 1991, when the use offoreign brands

was allowed; PepsiCo bought out its partners and ended the joint venturein

1994.Others claim that firstly Pepsi was banned from import in India, in

1970, forhaving refused to release the list of its ingredients and in 1993,

the ban was lifted, withPepsi arriving on the market shortly afterwards.

These controversies are a reminder of"Indias sometimes acrimonious

relationship with huge multinational companies." Indeed,some argue that

PepsiCo and The Coca-Cola Company have "been major targets inpart

because they are well-known foreign companies that draw plenty of

attention."In2003, the Centre for Science and Environment (CSE), a non-

governmental organizationin 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

54. cancer, a breakdown of the immune system and cause birth defects.

Tested productsincluded Coke, Pepsi, 7 Up, Miranda, Fanta, Thums Up,

Limca, and Sprite.CSE foundthat the Indian-produced Pepsis soft drink

products had 36 times the level of pesticideresidues permitted under

European Union regulations; Coca Colas 30 times.CSE said ithad tested

the same products in the US and found no such residues. However, this

wasthe European standard for water, not for other drinks. No law bans the

presence ofpesticides in drinks in India. The Coca-Cola Company and

PepsiCo angrily deniedallegations that their products manufactured in India

contained toxin levels far above thenorms permitted in the developed

world. But an Indian parliamentary committee, in 2004,backed up CSEs

findings and a government-appointed committee, is now trying todevelop

the worlds first pesticides standards for soft drinks. Coke and

PepsiCoopposed the move, arguing that lab tests arent reliable enough to

detect minute traces ofpesticides in complex drinks. As of 2005, The Coca-

Cola Company and PepsiCo togetherhold 95% market share of soft-drink

sales in India. PepsiCo has also been accused by thePuthussery

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 drinkingwater for the panchayat resident who have been

pressuring the government to closedown 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. BothPepsiCo and

The Coca-Cola Company maintain that their drinks are safe for

consumptionand have published newspaper advertisements that say

pesticide levels in their productsare less than those in other foods such as

tea, fruit and dairy products. In the Indian stateof Kerala, sale and

production of Pepsi-Cola, along with other soft drinks, was banned bythe

state government in 2006, but this was reversed by the Kerala High Court

merely amonth later. Five other Indians tates have announced partial bans

on the drinks inschools, colleges and hospitals.Brand FactsPepsiCo

nourishes consumers with a range of products from tasty treats to healthy

eatsthat deliver enjoyment, nutrition, convenience as well as affordability

The group has builtan expansive beverage and foods business. To support

its operations, PepsiCo has 42 54

55. bottling plants in India, of which 13 are company owned and 29 are

franchisee owned. Inaddition to this, PepsiCo‘s Frito Lay division has 3

state-of-the-art plants. PepsiCo‘sbusiness 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 thecountry,

consumers and farmers.BeveragesPepsiCo India‘s expansive portfolio

includes iconic refreshment beverages Pepsi, 7UP, Nimbooz, Miranda and

Mountain Dew, in addition to low calorie options such as DietPepsi,

hydrating and nutritional beverages such as Aquafina drinking water,

isotonicsports drinks - Gatorade, Tropicana100% fruit juices, and juice

based Drinks – TropicanaNectars, Tropicana Twister and Slice. Local

brands – Lehar EvervessSoda, DukesLemonade and Mangola add to the

diverse range of brands 55

It provides direct and indirect employment to 150,000 people in India. 56

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

Invested more than USD 1 Billion since inception. PepsiCo established

its business operations in India in 1989. 56. FoodsPepsiCo‘s food

division, Frito-Lay, is the leader in the branded salty snack market and

allFrito 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 andLehar brands. The company‘s high fiber breakfast

cereal, Quaker Oats, and low fat androasted snack options enhance the

healthful choices available to consumers. Frito Lay‘score products, Lay‘s,

Kurkure, Uncle Chipps and Cheetos are cooked in Rice Bran Oil

tosignificantly reduce saturated fats and all of its products contain voluntary

nutritionallabeling on their packets.QUICK FACTS

It has more than 42 bottling plants in India, of which 13 are company

owned57. & 3 State-of-the-art food plants in Punjab, Maharashtra and

West Bengal. 5729franchisee owned.

58. 3.3.2 PEPSICO INDIA: A FORTUNE 500 COMPANY IN

INDIAPepsiCo, which ranks among the world‘s five largest food and

beverage companies with16 brands, and its partners have invested more

than US$ 700 million in India - buildingbusinesses, which today provide

direct or indirect employment to more than 60,000people. Since Pepsi‘s

entry into the Indian market in 1989, several brands fromits portfolio have

become established category leaders. Brand Pepsi is now the 2ndbiggest

brand in the country. PepsiCo‘s portfolio of beverage brands in India

includes theflagship 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 leadingsports drink

Gatorade. 58

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. 59 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.

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. 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.59. Pepsi - Yeh Hai Youngistan Meri Jaan 3.3.3 BRAND

HISTORY

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. 60 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. 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! 60. 3.3.4 PEPSICO:

Brand Advantage

61. 3.3.5 PEPSICO PRODUCT IN INDIA 61

62. 3.3.6 SLOGANS OF PEPSI1939–1950: "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 JoanieSommers)1964–1967: "Come Alive, Youre in the

Pepsi Generation" (jingle sung by JoanieSommers)1967–1969: "(Taste

that beats the others cold) Pepsi Pours It On".1969–1975: "Youve Got a

Lot to Live, and Pepsis 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: "Pepsis 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 MichaelJackson and The Jacksons, featuring the Pepsi

version of "Billie Jean", "Bad" and "Blackor White". "Black of White"s was

promoting the Dangerous World Tour.) 62

63. 1984–1988: "Diet Pepsi. The Choice of a New Generation"1988–1989:

"Diet Pepsi. The Taste Thats Generations Ahead"1989–1990: "Diet Pepsi.

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

Coke"1986–1987: "Weve Got the Taste" (commercial with Tina

Turner)1987–1990: "Pepsis Cool" (commercial with Michael Jackson,

featuring Pepsi versionof 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 rightchoice 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 campaign1996–1997: "Pepsi: Theres 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" (commercialwith

Britney Spears/commercial with Mary J. Blige)1999–2006: "Yeh Dil

Maange More!" (Hindi - meaning "This heart asks for more") (India) 63

64. 2003: "It‘s the Cola"/"Dare for More" (Pepsi Commercial)2006–2007:

"Why You Doggin Me"/"Taste the one thats forever young" (Mary J.

Blige)2007–2008: "More Happy"/"Taste the once thats 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 youngcountry 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) 64

65. 3.4 THE RIVARLY BEGINS:3.4.1 Coke Come in IndiaCoca cola comes

to India with fanfare in the fifties. For a number of days, The

HindustanTimes and other newspapers of New Banaras carried full page

advertisement showing abig boy in uniform with a soft-drink crown as the

cap. There was no indication of theproduct. After a few days, Coke was

introduced. It was an entirely new drink whichfascinated people. It soon

became the national drink. For the first time, a soft-drink wasavailable from

one corner of the country to another. The person who brought Coca-Colato

India was the father of late Sardar Charanjit Singh, Sardar Mohan Singh. A

practicalman Mohan Singh realized that to popularize Coca-Cola, and

make it a bestseller it wasnecessary to ―catch them young.‖ So he

focused on youngsters in the society. Thecompany realized that to become

a mass consumption product, one has to go to thevillage. They gave much

importance to the distributive network. The company truckssupplied coke

to even the remotest village. Few products appears to be more similar

thansoft drinks, yet the Cola wars that mark the competition between Coke

and Pepsi showhow even organizations with highly similar product can be

differentiated by their businessstrategies. Then comes battles over the

issue of bottle size standardization. Coke thearch rival tried to offering

more Cola at a lower price. Pepsi which had some of it‘s earlyinvestment

tied up in 250ml bottles, went the fountain way. The General bottle size

freedhas 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 lyingdown and still preserve the fizz. It

poured in vast sums to whip up its visibility at the retaillevel, so that

consumers were greeted virtually at every street corner by Pepsi‘s blue,

redand 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 iscopying Pepsi. 65

66. 3.4.2 MARKETING STATEGIES OF COKE AND PEPSIPepsi and

Coca-Cola focused on the following controllable aspects:-PriceCoca-Cola

reduced prices nationwide by 15-25% to make them affordable and easy

toget access to. Pepsi introduced returnable glass bottles for customers to

recoup costs.ProductCoca-Cola and Pepsi launched different product lines

to appeal to the Indian consumertastes. They started with product lines that

were already available, such as cola, fruitdrinks, and carbonated water.

Then, when the market was ―ready‖, they launched otherlines, such as

bottled water (Coke- Kinley and Pepsi-Aquafina) and clear lime

sodas(Coke-Sprite, Pepsi-7 Up).PromotionBoth Coca-Cola and Pepsi

adapted to the local market with promotions. They promotedheavily during

the Navrarti festival. Pepsi gave away a kilo of Basmati rice with every

refillof 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 theirproducts. Pepsi launched an ambitious marketing

campaign sponsoring Cricketcelebrities and athletes from the World Cup.

Coca-Cola launched its Lifestyle AdvertisingCampaign 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

anactor to promote the project. Most importantly, they tried to create a

connection betweenlocal idioms and their products so that they would stick.

The use of celebrities is apowerful marketing tool across cultures to

promote products. 66

67. Channels of distributionProduction plants and bottling centers were

strategically placed in large cities all aroundIndia. More were added as

demand grew, along with new product lines. In Coca-Cola‘scase, the JV

with Parle provided access to its bottling plants and its products. By

formingpartnerships, both Coca-Cola and Pepsi were able to get initial

access into the market.ResearchIt seems that prior research into general

market demand may have been the mostoverlooked aspect by Coca-Cola

and Pepsi. India has not ever been considered alucrative market for the

soft drink industry. In 1989, Indians per capita were consumingonly three

bottles per year. One might question the risk-reward analysis that

bothcompanies partook in. Why enter a high-risk political/economic market

where there is avery little proven track record of success in beverages? 67

68. 3.4.3 PRODUCT COMPARISION IN INDIAS. NO. Coca-cola product

Pepsi product1 Coke Pepsi2 Diet Coke Pepsi Diet3 Thums-up Pepsi4

Limca Mirinda lemon5 Fanta Mirinda orange6 Maaza Slice7 Sprite 7up8

Sprite Mountain Dew9 Minute Made Tropicana10 Kinley Mineral Water

Aquifinna Mineral Water11 Kinley Club Soda --------12 Georgia coffee

--------13 ------ Lays product14 ------ Lehar product 68

69. 3.4.4 STRATEGY ADOPTED BY COKE AND PEPSIThe Pepsi

ProcessDespite being a global brand, Pepsi has built its success on

meeting the Indianconsumer‘s need particularly in terms of making the

brand synchronize with localizedevents and traditions. Instead of harping

on its global lineage, ergo, it tries to plug intoethnic festivals, use the

vernacular indifferent part of the country, and blend into the localfabric.

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 CopyInstead 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 theworld cup Cricket, 1996

and World cup Football 1998. But now coke is also entering intolocal

action. Coke is also trying to make their brand synchronize with localize

eventtradition and festivals. Coca-Cola new tag line in this advertisement is

―Real shopping,real refresher‖. In this way Coke is copy

Pepsi.EMPOWERMENTThe Pepsi ProcessOnce of the strongest weapons

in Pepsi‘s armory is the flexibility. it has empowered itspeople 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

70. The Coke CopyFlexibility is the weapon that Coca-Cola, fettered as it is

by the need for approvals fromAtlanta for almost everything. In the past,

this has shown up in its stubborn insistence onjunking the franchisee

network it had acquired from Parle; in its dependence on its ownfeedback

mechanism over that of its bottlers; and on its headquarters

approaches.PRICEThe Pepsi processPepsi has consistently wielded its

pricing strategy as in invitation to sample, aiming to turntrial 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 5less than Coke‘s .But it couldn‘t continue the lower price positioning

for long.The Coke CopyInitially, coke carbon-copied the strategy by

introducing its 330mlcans in January 1996, atan invitation price of Rs. 15

before raising it to Rs 18. By this time,it had realized that theCoca-Cola

brand did not hold enough attraction for customers to fork out a premium.

The200ml Coke, launched so far in parts of eastern, western, and northern

India, is priced atRs. 5, lowering the entry-barriers. Too really drive the

market, as Coke wants to you mustgo down to Rs. 3. 70

IMRAN KHAN 71 AKSHAY KUMAR BIPASHA BASU VIVEK

OBEROI AAMIR KHAN AISHWARYA RAI SALMAN KHAN DEEPIKA

PADUKONE CELIBRITIES OF COKE: VINDHU DARA SUNGJ RANBIR

KAPOOR YUVRAJ SINGH HARBHAJAN SINGH ZAHEER KHAN

MOHAMAD KAIF RAHUL DRAVID SOURAV GANGULY SAIF ALI

KHAN SACHIN TENDULKAR PRIETY ZINTA SHAHRUKH KHAN

AMITABH BACHHAN71. 3.4.5 CELEBRITIES ENDORSED CELIBRITIES

OF PEPSI:

72. 3.4.6 PRICEMaximum retail price of 300 ml bottles is controlled by the

Central Government. The othersize and packs are priced keeping factors

like competition, internal costs, external costs,and the corporate objective

of the company in the mindProducts Selling price(per caret) Max selling

price(per caret)300 ml bottle 240 264500ml bottle 364 3881 litter 500

520Soda 300 ml 164 188Cans 332 3521.5 litter PET bottle 50* 55*Price

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

Rs100.