1

Sandeep Soni

Project: Market Research & Product Devlopement

Presented To-

Pepsico India

Submitted By-

SHRI RAM MURTI SMARAK INTERNATIONAL BUSINESS SCHOOL

ACKNOWLEDGEMENTS

It is my proud privilege to express my sincere gratitude to all those who helped me

directly or indirectly in the completion of this project report.

I am greatly thankful to Prof. Dr. Nidhi Bisht for their Help, guidance’s and

valuable suggestion by which this work has been completed effectively and

efficiently. These all contribution is value.

This project is the outcome of the great deal of co-operation of the retailers

and distributer. I am very grateful to Mr.Viveka Patel (Account Development

Co-Ordinator Lucknow Region) under whom I started my training of the

Lucknow Depot.

Sandeep Soni

2

DECLARATION

I hereby declare that the Project work entitled MARKET RESEARCH AND

PRODUCT DEVELOPMENT submitted by me for the Summer Internship

During the Post Graduate Diploma in Management Program to Shri Ram

Murti Smarak International Business School is my own original work and has

Not been submitted earlier either to SRMS IBS or to any other Institution for the

fulfillment of the requirement for any course of study. I also declare that no chapter

Of this manuscript in whole or in part is lifted and incorporated in this report from

Any earlier / other work done by me or others.

Place:

Date: Signature of Student

Name of Student: Sandeep Soni

Address: 12/290 A Gandhi Nagar Shuklaganj Unnao-209861

3

EXECUTIVE SUMMARY

I, Sandeep Soni felt privileged to be a part of Shri Ram Murti Smark

International business School Lucknow  I did my summer internship training in

PepsiCo Holdings India Limited a FMCG sector company. My project title is“

MARKET RESERCH AND PRODUCT DEVELOPMENT”.

The project’s basic objective is to analyzing the anti Pepsi behavior of retail outlets

Under the distributorship of Shukla Sales, sitapur road, Lucknow. In this project I surveyed in areas of Shukla Sales and asked selected questions to

The outlet owners who were either not selling Pepsi products or selling in very less

Quantity. Out of my project learnt these things: Pepsi should understand the

Expectations of people If one wants to grow inFMCG sector one should keep

The following factors in mind that the products are easily available to the

Consumers, to improve the quality of products from time to time, competitive

Services should be provided to the retailers, the price of the product should

Be low and last but not the least the visibility and the promotional strategy should

Be such that it hits people’s mind.

4

TABLE OF CONTENTS

Chapter Topic Page No.

1. Introduction 7

2. Industry Profile-FMCG Sector 9

History of Soft Drinks

CSD Industry – overview

Channels of Beverage Industry

Competitor profile

3- Compnay profile 40

PepsiCo in Brief

Acquisitions and divestments

Restructuring

Competition

Products and brands

Areas of business

Corporate governance

Distribution to children

Marketing strategies of the company

Mission

Vision

Swot Analysis

5- Research methodology 55

Objectives of Research

5

Types of Research Methods Of Data Collection Evaluation Criteria for Survey Methods Observation Methods of Collecting Data

6- Data Analysis 60

7- Findings 122

8- Recommendations 127

9- Conclusion 131

Bibliography 132

6

Introduction

MARKET RESEARCH AND PRODUCT DEVELOPMENT:-

Market research is any organized effort to gather information about markets or

Customers. It is a very important component of business strategy. The term is

Commonly interchanged with marketing research; however, expert practitioners

May wish to draw a distinction, in that marketing research is concerned

specifically about marketing processes, while market research is concerned

specifically with markets. Market research is a key factor to get advantage over

competitors. Market research provides important information to identify and

Analyze the market need, market size and competition. Market research,

Includes social and opinion research, [and] is the systematic gathering and

Interpretation of information about individuals or organizations using statistical

And analytical methods and techniques of the applied social sciences to gain

Insight or support decision making. Product development (NPD) is the term

Used to describe the complete process of bringing a new product to market. A

Product is a set of benefits offered for exchange and can be tangible (that is,

Something physical you can touch) or intangible (like a service, experience, or

Belief). There are two parallel paths involved in the NPD process: one involves

The idea generation, product design and detail engineering; the other involves

Market research and marketing analysis.

Companies typically see new product development as the first stage in

7

Generating and commercializing new products within the overall strategic

Process of product life cycle management.

8

Industry Profile

Fast-moving consumer goods (FMCG) or consumer packaged goods (CPG) are the products that are sold quickly and at relatively low cost. Examples include non-durable goods such as soft drinks, toiletries, and grocery items. Though the absolute profit made on FMCG products is relatively small, they generally sell in large quantities, so the cumulative profit on such products can be substantial.

The term FMCG refers to those retail goods that are generally replaced or fully

used up over a short period of days, weeks, or months, and within one year. This

contrasts with durable goods and major appliances such as kitchen appliances,

which are generally replaced over a period of several years.

FMCG have a short shelf life, either as a result of high consumer demand or because the product deteriorates rapidly. Some FMCGs – such as meat, fruits and vegetables, dairy products and baked goods – are highly perishable. Other goods such as alcohol, toiletries, pre-packaged foods, soft drinks and cleaning products have high turnover rates.

Carbonated Soft Drink (CSD) Industry Overview

The soda drink and bottled water industry includes more than 3,000 companies that manufacture and distribute beverages. Only in the USA combined annual revenue is more than $70 billion. Coca-Cola and PepsiCo hold more than 50 percent of the market, following strong consolidation in the past decade. Only a few other companies have annual revenue above $500 million. Most are local or regional manufacturing and bottling operations with annual revenue under $100 million.

9

Competitive Landscape:

Demand for non-alcoholic beverages is driven by consumer tastes and demographics. The profitability of individual companies depends on effective marketing. Large manufacturers have economies of scale in production and distribution, with average annual revenue per production worker close to $1 million. Small companies can compete by producing new products, catering to local tastes, or selling at lower prices.

Sales & Marketing:

Beverage manufacturers, bottlers, and wholesalers sell products through a variety

of channels, such as food and convenience stores, restaurants, vending machines,

mass merchandisers, and institutions, including schools and colleges. Soda bottlers

typically own local vending machines. The marketing approach to each of these

channels is quite different and often includes promotional spending. Large

manufacturers may also sell directly to national accounts and usually advertise on

national or regional TV and in print.

Manufacturers typically produce a line of brands and often test and introduce new products into the market through their existing distribution channels.

In order to survive in this environment, companies must consider the market trends

that will likely shape the industry over the next few years. This will help soft drink

companies to understand the challenges they will encounter and to turn them into

opportunities for process improvement, enhanced flexibility and, ultimately,

greater profitability.

Market trends for the soft drink industry can be summarized by six fundamental

themes:

10

Changing consumer beverage preferences, featuring a shift toward health-

oriented wellness drinks

Growing friction between bottlers and manufacturers in the distribution

system

Continually increasing retailer strength

Fierce competition

Complex distribution system composed of multiple sales channels

Beverage safety concerns and more-stringent regulations

Consumers turn to wellness and healthy drinks

Competitor Profile-

Coca-Cola in brief-

The Las Vegas Strip World of Coca-Cola museum in 2003

Coca-Cola is a carbonated soft drink sold in stores, restaurants, and vending machines in more than 200 countries. It is produced by The Coca-Cola Company of Atlanta, Georgia, and is often referred to simply as Coke (a registered trademark of The Coca-Cola Company in the United States since March 27, 1944). Originally intended as a patent medicine when it was invented in the late 19th century by John

11

Pemberton, Coca-Cola was bought out by businessman Asa Griggs Candler, whose marketing tactics led Coke to its dominance of the world soft-drink market throughout the 20th century.

The company produces concentrate, which is then sold to licensed Coca-Cola bottlers throughout the world. The bottlers, who hold territorially exclusive contracts with the company, produce finished product in cans and bottles from the concentrate in combination with filtered water and sweeteners. The bottlers then sell, distribute and merchandise Coca-Cola to retail stores and vending machines. Such bottlers include Coca-Cola Enterprises, which is the largest single Coca-Cola bottler in North America and western Europe. The Coca-Cola Company also sells concentrate for soda fountains to major restaurants and food service distributors.

The Coca-Cola Company has, on occasion, introduced other cola drinks under the Coke brand name. The most common of these is Diet Coke, with others including Caffeine-Free Coca-Cola, Diet Coke Caffeine-Free, Coca-Cola Cherry, Coca-Cola Zero, Coca-Cola Vanilla, and special versions with lemon, lime or coffee.

Based on Interbrand's best global brand 2011, Coca-Cola was the world's most valuable brand.

History-

19th century historical origins

Coca-Cola founders Asa G. Candler and Dr. John S. Pemberton are seen together at Asa G. Candler & Co. pharmacy, 47 Peachtree St., Atlanta in the only extant albumen photograph from 1888. Also shown is the biography of Candler written by his son, Charles Howard Candler.

12

Old German Coca-Cola bottle opener

Believed to be the first coupon ever, this ticket for a free glass of Coca-Cola was first distributed in 1888 to help promote the drink. By 1913, the company had redeemed 8.5 million tickets.

This Coca-Cola advertisement from 1943 is still displayed in the small city of Minden, Louisiana.

The prototype Coca-Cola recipe was formulated at the Eagle Drug and Chemical Company, a drugstore in Columbus, Georgia, by John Pemberton, originally as a coca wine called Pemberton's French Wine Coca. He may have been inspired by the formidable success of Vin Mariani, a European coca wine.

In 1886, when Atlanta and Fulton County passed prohibition legislation, Pemberton responded by developing Coca-Cola, essentially a nonalcoholic version of French Wine Coca. 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

13

belief that carbonated water was good for the health. 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.

By 1888, three versions of Coca-Cola – sold by three separate businesses – were on the market. A copartnership had been formed on January 14, 1888 between Pemberton and four Atlanta businessmen: J.C. Mayfield, A.O. Murphey; C.O. Mullahy and E.H. Bloodworth. Not codified by any signed document, a verbal statement given by Asa Candler years later asserted under testimony that he had acquired a stake in Pemberton's company as early as 1887.

Asa Candler, however, eventually took on a more formal position by being part of the Coca-Cola Company incorporation filed in the Fulton County Superior Court on March 24, 1888. This action included Charley Pemberton and Woolfolk Walker, along with the latter's sister, Margaret Dozier. The four made up the original shareholders for "Coca-Cola Company," a Georgia corporation. All parties held copies of the Coca-Cola recipe and could continue to use the formula separate of each other.

Pemberton, though, had declared that the name "Coca-Cola" belonged solely to his son Charley. The situation was quite agitating to both Candler and Walker, and quickly placed the two at odds with Charley Pemberton. What further caused friction over this issue was that John Pemberton variously forgot he had actually signed over the sole rights to the "Coca-Cola" name to his son Charley earlier. Pemberton's ongoing health problems, compounded by his morphine addiction brought about from his old Civil War injury, made the situation difficult.

Charley Pemberton's record of control over the "Coca-Cola" name was the underlying factor that allowed for him to participate as a major shareholder in the March 1888 Coca-Cola Company incorporation filing made in his father's place. More so for Candler especially, Charley's position holding exclusive control over the "Coca Cola" name continued to be a thorn in his side.

Asa Candler's oldest son, Charles Howard Candler, authored a book in 1950 published by Emory University. In this definitive biography about his father, Candler specifically states: "..., on April 14, 1888, the young druggist [Asa Griggs Candler] purchased a one-third interest in the formula of an almost completely unknown proprietary elixir known as Coca-Cola."

14

The deal was actually between John Pemberton's son Charley and Walker, Candler & Co. - with John Pemberton acting as cosigner for his son. For $50 down and $500 in 30 days, Walker, Candler & Co. obtained all of the one-third interest in the Coca-Cola Company that Charley held, all while Charley still held on to the name. After the April 14th deal, on April 17, 1888, one-half of the Walker/Dozier interest shares were acquired by Candler for an additional $750.

Charles Howard Candler's statement that April 14, 1888 was the date his father secured a "one-third interest in the formula" held by Charley Pemberton for the then obscure Coca-Cola elixir, none-the-less confirms this event was a major turning point for Asa Candler and his interests in Coca-Cola. This, too, was a most auspicious occasion that Asa Candler would have especially wanted to preserve in an 'official' photograph. By this time the "Coca-Cola" syrup-making apparatus had already been moved from Joe Jacob's pharmacy to the basement of Candler's larger 47 Peachtree Street location, where the drink's ever increasing syrup-bottling demands could be better handled.

In 1910, Asa Candler had ordered all corporate documents pertaining to the first Coca-Cola Company burned. The original 1888 photograph shows the very beginnings of the Coca Cola Company, and formerly was the personal property of Asa Griggs Candler.

In 1914, Margaret Dozier, as co-owner of the original Coca-Cola Company in 1888, brazenly came forward to claim her signature on the 1888 Coca-Cola Company bill of sale had been forged. Subsequent analysis of certain similar transfer documents had also indicated John Pemberton's signature was most likely a forgery, as well, which some accounts claim was precipitated by his son Charley.

In 1892, Candler set out to incorporate a second company; "The Coca-Cola Company" (the current corporation). However, in 1910, Candler had the earliest records of the "Coca-Cola Company" burned. This was claimed to have been made during a move to new corporation offices around this time.

The loss of the early corporate records further obscured the 1888 corporation's legal origins. Only one sole original "ASA G. CANDLER & CO." photograph from 1888 remains, and that example Candler at one time kept at his private home outside of Atlanta.

After Candler had gained a better foothold of Coca-Cola in April 1888, he never-the-less was forced to sell the beverage he produced with the recipe he had under the names "Yum Yum" and "Koke". This was while Charley Pemberton was

15

selling the elixir, although a cruder mixture, under the name "Coca-Cola", all with his father's blessing. After both names failed to catch on for Candler, by the summer of 1888, the Atlanta pharmacist was quite anxious to establish a firmer legal claim to Coca-Cola, and hoped he could force his two competitors, Walker and Dozier, completely out of the business, as well.

When Dr. John Stith Pemberton suddenly died on August 16, 1888, Asa G. Candler now sought to move swiftly forward to attain his vision of taking full control of the whole Coca-Cola operation.

Charley Pemberton, an alcoholic, was the one obstacle who unnerved Asa Candler more than anyone else. Candler is said to have quickly maneuvered to purchase the exclusive rights to the name "Coca-Cola" from Pemberton's son Charley right after Dr. Pemberton's death. One of several stories was that Candler bought the title to the name from Charley's mother for $300; approaching her at Dr. Pemberton's funeral. Eventually, Charley Pemberton was found on June 23, 1894, unconscious, with a stick of opium by his side. Ten days later, Charley died at Atlanta's Grady Hospital at the age of 40.

In Charles Howard Candler's 1950 book about his father, he stated: "On August 30th {1888}, he {Asa Candler} became sole proprietor of Cola-Cola, a fact which was stated on letterheads, invoice blanks and advertising copy."

With this action on August 30, 1888, Candler's sole control became technically all true. Candler had negotiated with Margaret Dozier and her brother Woolfolk Walker a full payment amounting to $1,000, which all agreed Candler could pay off with a series of notes over a specified time span. By May 1, 1889, Candler was now claiming full ownership of the Coca-Cola beverage, with a total investment outlay by Candler for the drink enterprise over the years amounting to $2,300.

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, in Cartersville, Georgia.

The first bottling of Coca-Cola occurred in Vicksburg, Mississippi, at the Biedenharn Candy Company in 1891. Its proprietor was Joseph A. Biedenharn. The original bottles were Biedenharn bottles, very different from the much later hobble-skirt design now so familiar. Asa Candler was tentative about bottling the drink, but two entrepreneurs from Chattanooga, Tennessee, Benjamin F. Thomas and Joseph B. Whitehead, proposed the idea and were so persuasive that Candler signed a contract giving them control of the procedure for only one dollar. Candler never collected his dollar, but in 1899, Chattanooga became the site of the first

16

Coca-Cola bottling company. The loosely termed contract proved to be problematic for the company for decades to come. Legal matters were not helped by the decision of the bottlers to subcontract to other companies, effectively becoming parent bottlers.

Coke concentrate, or Coke syrup, was and is sold separately at pharmacies in small quantities, as an over-the-counter remedy for nausea or mildly upset stomach.

20th century landmarks-

By the time of its 50th anniversary, the soft drink had reached the status of a national icon in the USA. In 1935, it was certified kosher by Atlanta Rabbi Tobias Geffen, after the company made minor changes in the sourcing of some ingredients.

Original framed Coca-Cola artist's drawn graphic presented by The Coca-Cola Company on July 12, 1944 to Charles Howard Candler on the occasion of Coca-Cola's "1 Billionth Gallon of Coca-Cola Syrup."

17

Legended to be the first installation anywhere of the celebrated "Boat Motor" styled Coca-Cola soda dispenser, Fleeman's Pharmacy, Atlanta, Georgia. Photograph circa 1948.

The longest running commercial Coca-Cola soda fountain anywhere was Atlanta's Fleeman's Pharmacy, which first opened its doors in 1914. Jack Fleeman took over the pharmacy from his father and ran it till 1995; closing it after 81 years.

On July 12, 1944, the one-billionth gallon of Coca-Cola syrup was manufactured by The Coca-Cola Company.

Cans of Coke first appeared in 1955.

New Coke-

Coca-Cola sign in Colorado City, Texas

On April 23, 1985, Coca-Cola, amid much publicity, attempted to change the formula of the drink with "New Coke". Follow-up taste tests revealed most consumers preferred the taste of New Coke to both Coke and Pepsi, but Coca-Cola management was unprepared for the public's nostalgia for the old drink, leading to a backlash. The company gave in to protests and returned to a variation of the old formula, under the name Coca-Cola Classic, on July 10, 1985.

21st century-

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 April 2007, in Canada, the name "Coca-Cola Classic" was changed back to "Coca-Cola". The word "Classic" was removed because "New Coke" was no

18

longer in production, eliminating the need to differentiate between the two. The formula remained unchanged.

In January 2009, Coca-Cola stopped printing the word "Classic" on the labels of 16-US-fluid-ounce (470 ml) bottles sold in parts of the southeastern United States. The change is part of a larger strategy to rejuvenate the product's image. The word "Classic" was removed from all Coca-Cola products by 2011.

In November 2009, due to a dispute over wholesale prices of Coca-Cola products, Costco stopped restocking its shelves with Coke and Diet Coke. However, some Costco locations (such as the ones in Tucson, Arizona), sell imported Coca-Cola from Mexico.

Coca-Cola introduced the 7.5-ounce mini-can in 2009, and on September 22, 2011, the company announced price reductions, asking retailers to sell eight-packs for $2.99. That same day, Coca-Cola announced the 12.5-ounce bottle, to sell for 89 cents. A 16-ounce bottle has sold well at 99 cents since being re-introduced, but the price was going up to $1.19.

In 2012, Coca-Cola would resume business in Burma after 60 years of absence due to U.S.-imposed investment sanctions against the country. Coca-Cola with its partners is to invest USD 5 billion in its operations in India by 2020.

Use of stimulants in formula-

When launched, Coca-Cola's two key ingredients were cocaine 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 – cocaine

Pemberton called for five ounces of coca leaf per gallon of syrup, a significant dose; in 1891, Candler claimed his formula (altered extensively from Pemberton's original) contained only a tenth of this amount. Coca-Cola once contained an estimated nine milligrams of cocaine per glass. In 1903, it was removed.

After 1904, instead of using fresh leaves, Coca-Cola started using "spent" leaves – the leftovers of the cocaine-extraction process with trace levels of cocaine. Coca-Cola now uses a cocaine-free coca leaf extract prepared at a Stepan Company plant in Maywood, New Jersey.

19

In the United States, the Stepan Company is the only manufacturing plant authorized by the Federal Government to import and process the coca plant, which it obtains mainly from Peru and, to a lesser extent, Bolivia. Besides producing the coca flavoring agent for Coca-Cola, the Stepan Company extracts cocaine from the coca leaves, which it sells to Mallinckrodt, a St. Louis, Missouri pharmaceutical manufacturer that is the only company in the United States licensed to purify cocaine for medicinal use.

Kola nuts – caffeine

Kola nuts act as a flavoring and the source of caffeine in Coca-Cola. In Britain, for example, the ingredient label states "Flavourings (Including Caffeine)." Kola nuts contain about 2.0 to 3.5% caffeine, are of bitter flavor and are commonly used in cola soft drinks. In 1911, the U.S. government initiated United States v. Forty Barrels and Twenty Kegs of Coca-Cola, hoping to force Coca-Cola to remove caffeine from its formula. The case was decided in favor of Coca-Cola. Subsequently, in 1912, the U.S. Pure Food and Drug Act was amended, adding caffeine to the list of "habit-forming" and "deleterious" substances which must be listed on a product's label.

Coca-Cola contains 34 mg of caffeine per 12 fluid ounces (9.8 mg per 100 ml).

Production-

Coca-Cola 375 mL cans – 24 pack (AU)

Ingredients

20

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

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

Formula of natural flavorings-

The exact formula of Coca-Cola's natural flavorings (but not its other ingredients, which are listed on the side of the bottle or can) is a trade secret. The original copy of the formula was held in SunTrust Bank's main vault in Atlanta for 86 years. Its predecessor, the Trust Company, was the underwriter for the Coca-Cola Company's initial public offering in 1919. On December 8, 2011, the original secret formula was moved from the vault at SunTrust Banks to a new vault containing the formula which will be on display for visitors to its World of Coca-Cola museum in downtown Atlanta.

A popular myth states that only two executives have access to the formula, with each executive having only half the formula. The truth is that while Coca-Cola does have a rule restricting access to only two executives, each knows the entire formula and others, in addition to the prescribed duo, have known the formulation process.

On February 11, 2011, Ira Glass revealed on his PRI radio show, This American Life, that the secret formula to Coca-Cola had been uncovered in a 1979 newspaper. The formula found basically matched the formula found in Pemberton's diary.

Franchised production model-

The actual production and distribution of Coca-Cola follows a franchising model. The Coca-Cola Company only produces a syrup concentrate, which it sells to bottlers throughout the world, who hold Coca-Cola franchises for one or more geographical areas. The bottlers produce the final drink by mixing the syrup with filtered water and sweeteners, and then carbonate it before putting it in cans and

21

bottles, which the bottlers then sell and distribute to retail stores, vending machines, restaurants and food service distributors.

The Coca-Cola Company owns minority shares in some of its largest franchises, such as Coca-Cola Enterprises, Coca-Cola Amatil, Coca-Cola Hellenic Bottling Company and Coca-Cola FEMSA, but fully independent bottlers produce almost half of the volume sold in the world. Independent bottlers are allowed to sweeten the drink according to local tastes.

The bottling plant in Skopje, Macedonia, received the 2009 award for "Best Bottling Company".

Brand portfolio-

This is a list of variants of Coca-Cola introduced around the world. In addition to the caffeine-free version of the original, additional fruit flavors have been included over the years. Not included here are versions of Diet Coke and Coca-Cola Zero; variant versions of those no-calorie colas can be found at their respective articles.

Name Launched Discontinued Notes Picture

Coca-Cola 1886The original version of Coca-Cola.

Caffeine-Free Coca-Cola

1983The caffeine free version of Coca-Cola.

22

Coca-Cola Cherry

1985

Was available in Canada starting in 1996. Called "Cherry Coca-Cola (Cherry Coke)" in North America until 2006.

New Coke/"Coca-Cola II"

1985 2002Still available in Yap and American Samoa

Coca-Cola with Lemon

2001 2005

Available in:

Australia, American Samoa, Austria, Belgium, Brazil, China, Denmark, Federation of Bosnia and Herzegovina, Finland, France, Germany, Hong Kong, Iceland, Korea, Luxembourg, Macau, Malaysia, Mongolia, Netherlands, New Caledonia, New Zealand, Norway, Réunion, Singapore, Spain, Switzerland, Taiwan, Tunisia, United Kingdom, United States, and West Bank-Gaza

Coca-Cola Vanilla

2002; 2007

2005

Available in: Austria, Australia, China, Finland, Germany, Hong Kong, New Zealand, Malaysia, Sweden, United Kingdom and United States. It was reintroduced in June 2007 by popular demand.

23

Coca-Cola with Lime

2005

Available in Belgium, Netherlands, Singapore, Canada, the United Kingdom, and the United States.

Coca-Cola Raspberry

June 2005 End of 2005

Was only available in New Zealand. Currently available in the United States in Coca-Cola Freestyle fountain since 2009.

Coca-Cola Black Cherry Vanilla

2006Middle of 2007

Was replaced by Vanilla Coke in June 2007

Coca-Cola Blāk

2006Beginning of 2008

Only available in the United States, France, Canada, Czech Republic, Bosnia and Herzegovina, Bulgaria and Lithuania

24

Coca-Cola Citra

2006Only available in Bosnia and Herzegovina, New Zealand and Japan.

Coca-Cola Orange

2007

Was available in the United Kingdom and Gibraltar for a limited time. In Germany, Austria and Switzerland it's sold under the label Mezzo Mix. Currently available in Coca-Cola Freestyle fountain outlets in the United States since 2009.

Logo design

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 Spencerian script, was developed in the mid-19th century and was the dominant form of formal handwriting in the United States during that period.

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.

Contour bottle design-

25

Earl R. Dean's original 1915 concept drawing of the contour Coca-Cola bottle.

The prototype never made it to production since its middle diameter was larger than its base, making it unstable on conveyor belts.

26

Designer label for 2 litre Coca-Cola bottle

The equally famous Coca-Cola bottle, called the "contour bottle" within the company, but known to some as the "hobble skirt" bottle, was created by bottle designer Earl R. Dean. In 1915, the Coca-Cola Company launched a competition among its bottle suppliers to create a new bottle for their beverage that would distinguish it from other beverage bottles, "a bottle which a person could recognize even if they felt it in the dark, and so shaped that, even if broken, a person could tell at a glance what it was."

Chapman J. Root, president of the Root Glass Company of Terre Haute, Indiana, turned the project over to members of his supervisory staff, including company auditor T. Clyde Edwards, plant superintendent Alexander Samuelsson, and Earl R. Dean, bottle designer and supervisor of the bottle molding room. Root and his subordinates decided to base the bottle's design on one of the soda's two ingredients, the coca leaf or the kola nut, but were unaware of what either ingredient looked like. Dean and Edwards went to the Emeline Fairbanks Memorial Library and were unable to find any information about coca or kola. Instead, Dean was inspired by a picture of the gourd-shaped cocoa pod in the Encyclopædia Britannica. Dean made a rough sketch of the pod and returned to the plant to show Root. He explained to Root how he could transform the shape of the pod into a bottle. Root gave Dean his approval.

Faced with the upcoming scheduled maintenance of the mold-making machinery, over the next 24 hours Dean sketched out a concept drawing which was approved by Root the next morning. Dean then proceeded to create a bottle mold and produced a small number of bottles before the glass-molding machinery was turned off.

Chapman Root approved the prototype bottle and a design patent was issued on the bottle in November, 1915. The prototype never made it to production since its

27

middle diameter was larger than its base, making it unstable on conveyor belts. Dean resolved this issue by decreasing the bottle's middle diameter. During the 1916 bottler's convention, Dean's contour bottle was chosen over other entries and was on the market the same year. By 1920, the contour bottle became the standard for the Coca-Cola Company. Today, the contour Coca-Cola bottle is one of the most recognized packages on the planet..."even in the dark!"

As a reward for his efforts, Dean was offered a choice between a $500 bonus or a lifetime job at the Root Glass Company. He chose the lifetime job and kept it until the Owens-Illinois Glass Company bought out the Root Glass Company in the mid-1930s. Dean went on to work in other Midwestern glass factories.

One alternative depiction has Raymond Loewy as the inventor of the unique design, but, while Loewy did serve as a designer of Coke cans and bottles in later years, he was in the French Army the year the bottle was invented and did not emigrate to the United States until 1919. Others have attributed inspiration for the design not to the cocoa pod, but to a Victorian hooped dress.

In 1944, Associate Justice Roger J. Traynor of the Supreme Court of California took advantage of a case involving a waitress injured by an exploding Coca-Cola bottle to articulate the doctrine of strict liability for defective products. Traynor's concurring opinion in Escola v. Coca-Cola Bottling Co. is widely recognized as a landmark case in U.S. law today.

In 1997, Coca-Cola introduced a "contour can," similar in shape to its famous bottle, on a few test markets, including Terre Haute, Indiana. The can has never been widely released.

A new slim and tall can began to appear in Australia on December 20, 2006; it cost AU$1.95. The cans have a resemblance to energy drink cans. The cans were commissioned by Domino's Pizza and are available exclusively at their restaurants.

In January 2007, Coca-Cola Canada changed "Coca-Cola Classic" labeling, removing the "Classic" designation, leaving only "Coca-Cola." Coca-Cola stated this is merely a name change and the product remains the same.

In 2007, Coca-Cola introduced an aluminum can designed to look like the original glass Coca-Cola bottles.

28

In 2007, the company's logo on cans and bottles changed. The cans and bottles retained the red color and familiar typeface, but the design was simplified, leaving only the logo and a plain white swirl (the "dynamic ribbon").

In 2008, in some parts of the world, the plastic bottles for all Coke varieties (including the larger 1.5- and 2-liter bottles) were changed to include a new plastic screw cap and a slightly taller contoured bottle shape, designed to evoke the old glass bottles.

Two Chinese Coke bottles, a 200 ml glass bottle, which is becoming less common, and a 300 ml plastic bottle that is now widely available.

Designer bottles-

Karl Lagerfeld is the latest designer to have created a collection of aluminum bottles for Coca-Cola. Lagerfeld is not the first fashion designer to create a special version of the famous Coca-Cola Contour bottle. A number of other limited edition bottles by fashion designers for Coca Cola Light soda have been created in the last few years.

In 2009, in Italy, Coca-Cola Light had a Tribute to Fashion to celebrate 100 years of the recognizable contour bottle. Well known Italian designers Alberta Ferretti, Blumarine, Etro, Fendi, Marni, Missoni, Moschino, and Versace each designed limited edition bottles.

Competitors-

Pepsi, the flagship product of PepsiCo, The Coca-Cola Company's main rival in the soft drink industry, is usually second to Coke in sales, and outsells Coca-Cola

29

in some markets. RC Cola, now owned by the Dr Pepper Snapple Group, the third largest soft drink manufacturer, is also widely available.

Around the world, many local brands compete with Coke. In South and Central America Kola Real, known as Big Cola in Mexico, is a growing competitor to Coca-Cola. On the French island of Corsica, Corsica Cola, made by brewers of the local Pietra beer, is a growing competitor to Coca-Cola. In the French region of Brittany, Breizh Cola is available. In Peru, Inca Kola outsells Coca-Cola, which led The Coca-Cola Company to purchase the brand in 1999. In Sweden, Julmust outsells Coca-Cola during the Christmas season. In Scotland, the locally produced Irn-Bru was more popular than Coca-Cola until 2005, when Coca-Cola and Diet Coke began to outpace its sales. 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. Tropicola, a domestic drink, is served in Cuba instead of Coca-Cola, due to a United States embargo. French brand Mecca Cola and British brand Qibla Cola are competitors to Coca-Cola in the Middle East. In Turkey, Cola Turka, in Iran and the Middle East, Zam Zam Cola and Parsi Cola, in some parts of China, China Cola, in Slovenia, Cockta and the inexpensive Mercator Cola, sold only in the country's biggest supermarket chain, Mercator, are some of the brand's competitors. Classiko Cola, made by Tiko Group, the largest manufacturing company in Madagascar, is a serious competitor to Coca-Cola in many regions. Laranjada is the top-selling soft drink on Madeira.

Advertising-

Coca-Cola's advertising has significantly affected American culture, and it is frequently credited with inventing the modern image of Santa Claus as an old man in a red-and-white suit. Although the company did start using the red-and-white Santa image in the 1930s, with its winter advertising campaigns illustrated by Haddon Sundblom, the motif was already common. Coca-Cola was not even the first soft drink company to use the modern image of Santa Claus in its advertising: White Rock Beverages used Santa in advertisements for its ginger ale in 1923, after first using him to sell mineral water in 1915. Before Santa Claus, Coca-Cola relied on images of smartly dressed young women to sell its beverages. Coca-Cola's first such advertisement appeared in 1895, featuring the young Bostonian actress Hilda Clark as its spokeswoman.

30

An 1890s advertisement showing model Hilda Clark in formal 19th century attire. The ad is titled Drink Coca-Cola 5¢. (US)

1941 saw the first use of the nickname "Coke" as an official trademark for the product, with a series of advertisements informing consumers that "Coke means Coca-Cola". In 1971 a song from a Coca-Cola commercial called "I'd Like to Teach the World to Sing", produced by Billy Davis, became a hit single.

Coca-Cola sales booth on the Cape Verde island of Fogo in 2004.

Coke's advertising is pervasive, as one of Woodruff's stated goals was to ensure that everyone on Earth drank Coca-Cola as their preferred beverage. This is especially true in southern areas of the United States, such as Atlanta, where Coke was born.

31

Coca-Cola signboard in Lahore, Pakistan.

Some Coca-Cola television commercials between 1960 through 1986 were written and produced by former Atlanta radio veteran Don Naylor (WGST 1936–1950, WAGA 1951–1959) during his career as a producer for the McCann Erickson advertising agency. Many of these early television commercials for Coca-Cola featured movie stars, sports heroes and popular singers.

Coca-Cola ghost sign in Fort Dodge, Iowa. Older Coca-Cola ghosts behind Borax and telephone ads.

During the 1980s, Pepsi-Cola ran a series of television advertisements showing people participating in taste tests demonstrating that, according to the commercials, "fifty percent of the participants who said they preferred Coke actually chose the Pepsi." Statisticians pointed out the problematic nature of a 50/50 result: most likely, the taste tests showed that in blind tests, most people cannot tell the difference between Pepsi and Coke. Coca-Cola ran ads to combat Pepsi's ads in an incident sometimes referred to as the cola wars; one of Coke's ads compared the so-called Pepsi challenge to two chimpanzees deciding which tennis ball was furrier. Thereafter, Coca-Cola regained its leadership in the market.

Selena was a spokesperson for Coca-Cola from 1989 till the time of her death. She filmed three commercials for the company. In 1994, to commemorate her five years with the company, Coca-Cola issued special Selena coke bottles.

32

The Coca-Cola Company purchased Columbia Pictures in 1982, and began inserting Coke-product images into many of its films. After a few early successes during Coca-Cola's ownership, Columbia began to under-perform, and the studio was sold to Sony in 1989.

Coca-Cola has gone through a number of different advertising slogans in its long history, including "The pause that refreshes," "I'd like to buy the world a Coke," and "Coke is it" (see Coca-Cola slogans).

In 2006, Coca-Cola introduced My Coke Rewards, a customer loyalty campaign where consumers earn points by entering codes from specially marked packages of Coca-Cola products into a website. These points can be redeemed for various prizes or sweepstakes entries.

In Australia in 2011, Coca-Cola began the "share a Coke" campaign, where the Coca-Cola logo was replaced on the bottles and replaced with first names. Coca-Cola used the 150 most popular names in Australia to print on the bottles. The campaign was paired with a website page, Facebook page and an online "share a virtual Coke".

Holiday campaigns-

Coca-Cola Christmas truck in Dresden, Germany.

The "Holidays are coming!" advertisement features a train of red delivery trucks, emblazoned with the Coca-Cola name and decorated with Christmas lights, driving through a snowy landscape and causing everything that they pass to light up and people to watch as they pass through.

33

The advertisement fell into disuse in 2001, as the Coca-Cola company restructured its advertising campaigns so that advertising around the world was produced locally in each country, rather than centrally in the company's headquarters in Atlanta, Georgia. In 2007, the company brought back the campaign after, according to the company, many consumers telephoned its information center saying that they considered it to mark the beginning of Christmas. The advertisement was created by U.S. advertising agency Doner, and has been part of the company's global advertising campaign for many years.

Keith Law, a producer and writer of commercials for Belfast CityBeat, was not convinced by Coca-Cola's reintroduction of the advertisement in 2007, saying that "I don't think there's anything Christmassy about HGVs and the commercial is too generic."

In 2001, singer Melanie Thornton recorded the campaign's advertising jingle as a single, Wonderful Dream (Holidays are Coming), which entered the pop-music charts in Germany at no. 9. In 2005, Coca-Cola expanded the advertising campaign to radio, employing several variations of the jingle.

In 2011, Coca-Cola launched a campaign for the Indian holiday Diwali. The campaign included commercials, a song and an integration with Shah Rukh Khan’s film Ra.One.

Sports sponsorship-

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. This corporate sponsorship included the 1996 Summer Olympics hosted in Atlanta, which allowed Coca-Cola to spotlight its hometown. Most recently, Coca-Cola has released localized commercials for the 2010 Winter Olympics in Vancouver; one Canadian commercial referred to Canada's hockey heritage and was modified after Canada won the gold medal game on February 28, 2010 by changing the ending line of the commercial to say "Now they know whose game they're playing".

Since 1978, Coca-Cola has sponsored the FIFA World Cup, and other competitions organised by FIFA. One FIFA tournament trophy, the FIFA World Youth Championship from Tunisia in 1977 to Malaysia in 1997, was called "FIFA — Coca Cola Cup". In addition, Coca-Cola sponsors the annual Coca-Cola 600 and Coke Zero 400 for the NASCAR Sprint Cup Series at Charlotte Motor Speedway in Concord, North Carolina and Daytona International Speedway in Daytona, Florida.

34

Coca-Cola has a long history of sports marketing relationships, which over the years have included Major League Baseball, the National Football League, the National Basketball Association, and the National Hockey League, as well as with many teams within those leagues. Coca-Cola has had a longtime relationship with the NFL's Pittsburgh Steelers, due in part to the now-famous 1979 television commercial featuring "Mean Joe" Greene, leading to the two opening the Coca-Cola Great Hall at Heinz Field in 2001 and a more recent Coca-Cola Zero commercial featuring Troy Polamalu.

Coca-Cola is the official soft drink of many collegiate football teams throughout the nation, partly due to Coca-Cola providing those schools with upgraded athletic facilities in exchange for Coca-Cola's sponsorship. This is especially prevalent at the high school level, which is more dependent on such contracts due to tighter budgets.

Coca-Cola was one of the official sponsors of the 1996 Cricket World Cup held on the Indian subcontinent. Coca Cola is also one of the associate sponsor of Delhi Daredevils in Indian Premier League.

In England, Coca-Cola was the main sponsor of The Football League between 2004 and 2010, a name given to the three professional divisions below the Premier League in football (soccer). It is also responsible for the renaming of these divisions — until the advent of Coca-Cola sponsorship, they were referred to as Divisions One, Two and Three. Since 2004, the divisions have been known as The Championship (equiv. of Division 1), League One (equiv. of Div. 2) and League 2 (equiv. of Division 3). This renaming has caused unrest amongst some fans, who see it as farcical that the third tier of English Football is now called "League One." In 2005, Coca-Cola launched a competition for the 72 clubs of the football league — it was called "Win a Player". This allowed fans to place 1 vote per day for their beloved club, with 1 entry being chosen at random earning £250,000 for the club; this was repeated in 2006. The "Win A Player" competition was very controversial, as at the end of the 2 competitions, Leeds United AFC had the most votes by more than double, yet they did not win any money to spend on a new player for the club. In 2007, the competition changed to "Buy a Player". This competition allowed fans to buy a bottle of Coca-Cola Zero or Coca-Cola and submit the code on the wrapper on the Coca-Cola website {www.coca-colafootball.co.uk}. This code could then earn anything from 50p to £100,000 for a club of their choice. This competition was favored over the old "Win A Player" competition, as it allowed all clubs to win some money.

35

Introduced March 1, 2010, in Canada, to celebrate the 2010 Winter Olympics, Coca Cola will sell gold colored cans in packs of 12 355 mL each, in select stores.

In mass media-

Coca-Cola has been prominently featured in countless films and television programs. Since its creation, it remains as one of the most important elements of the popular culture. It was a major plot element in films such as One, Two, Three, The Coca-Cola Kid, and The Gods Must Be Crazy among many others. It provides a setting for comical corporate shenanigans in the novel Syrup by Maxx Barry. And in music, in The Beatles' song, "Come Together", the lyrics said, "He shoot Coca-Cola, he say...". The Beach Boys also referenced Coca-Cola in their 1964 song "All Summer Long" (i.e. 'Member when you spilled Coke all over your blouse?)

Also, the best selling artist of all time and worldwide cultural icon, Elvis Presley, promoted Coca-Cola during his last tour of 1977. The Coca-Cola Company used the Elvis' image to promote the product. For example, the company used a song performed by Presley, A Little Less Conversation, in a Japanese Coca-Cola commercial.

Other artists that promoted Coca-Cola include The Beatles, David Bowie, George Michael, Elton John and Whitney Houston, who appeared in the Diet Coca-Cola commercial, among many others.

Not all musical references to Coca-Cola went well. A line in "Lola" by The Kinks was originally recorded as "You drink champagne and it tastes just like Coca-Cola." When the British Broadcasting Corporation refused to play the song because of the commercial reference, lead singer Ray Davies was forced to fly from New York to London and re-record the lyric as "it tastes just like cherry cola" to get airplay for the song.

Political cartoonist Michel Kichka satirized a Coca-Cola billboard in his 1982 poster "And I Love New York." On the billboard, the lettering and script above the Coca-Cola wave read "Enjoy Cocaine."

Health effects-

Since studies indicate "soda and sweetened drinks are the main source of calories in [the] American diet", most nutritionists advise that Coca-Cola and other soft drinks can be harmful if consumed excessively, particularly to young children

36

whose soft drink consumption competes with, rather than complements, a balanced diet. Studies have shown that regular soft drink users have a lower intake of calcium, magnesium, ascorbic acid, riboflavin, and vitamin A. The drink has also aroused criticism for its use of caffeine, which can cause physical dependence. A link has been shown between long-term regular cola intake and osteoporosis in older women (but not men). This was thought to be due to the presence of phosphoric acid, and the risk was found to be same for caffeinated and noncaffeinated colas, as well as the same for diet and sugared colas.

A common criticism of Coke based on its allegedly toxic acidity levels has been found to be baseless by researchers; lawsuits based on these notions have been dismissed by several American courts for this reason. Although numerous court cases have been filed against The Coca-Cola Company since the 1920s, alleging that the acidity of the drink is dangerous, no evidence corroborating this claim has been found. Under normal conditions, scientific evidence indicates Coca-Cola's acidity causes no immediate harm.

Since 1980 in the U.S., Coke has been made with high-fructose corn syrup (HFCS) as an ingredient. Originally it was used in combination with more expensive cane-sugar, but by late 1984 the formulation was sweetened entirely with HFCS. Some nutritionists caution against consumption of HFCS because it may aggravate obesity and type-2 diabetes more than cane sugar.

In India, there is a controversy whether there are pesticides and other harmful chemicals in bottled products, including Coca-Cola. 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 Coca-Cola, contained toxins including lindane, DDT, malathion and chlorpyrifos — pesticides that can contribute to cancer and a breakdown of the immune system. 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 soft drink was found to have 30 times the permitted amount. CSE said it had tested the same products sold in the U.S. and found no such residues. After the pesticide allegations were made in 2003, Coca-Cola sales in India declined by 15 percent. In 2004 an Indian parliamentary committee backed up CSE's findings and a government-appointed committee was tasked with developing the world's first pesticide standards for soft drinks. The Coca-Cola Company has responded that its plants filter water to remove potential contaminants and that its products are tested for pesticides and must meet minimum health standards before they are distributed. In the Indian state of Kerala

37

sale and production of Coca-Cola, along with other soft drinks, was initially banned after the allegations, until the High Court in Kerala overturned ruled that only the federal government can ban food products. Coca-Cola has also been accused of excessive water usage in India.

The 2008 Ig Nobel Prize (a parody of the Nobel Prizes) in Chemistry was awarded to Sheree Umpierre, Joseph Hill, and Deborah Anderson, for discovering that Coca-Cola is an effective spermicide, and to C.Y. Hong, C.C. Shieh, P. Wu, and B.N. Chiang for proving it is not.

Criticism-

Coca-Cola has been criticized for alleged adverse health effects, its aggressive marketing to children, exploitative labor practices, high levels of pesticides in its products, building plants in Nazi Germany which employed slave labor, environmental destruction, monopolistic business practices, and hiring paramilitary units to murder trade union leaders. In October 2009, in an effort to improve their image, Coca-Cola partnered with the American Academy of Family Physicians, providing a $500,000 grant to help promote healthy-lifestyle education; the partnership spawned sharp criticism of both Coca-Cola and the AAFP by physicians and nutritionists.

Use as political and corporate symbol-

Coca-Cola advertising in High Atlas mountains of Morocco

38

Coke dispenser flown aboard the Space Shuttle in 1996 (US)

The Coca-Cola drink has a high degree of identification with the United States, being considered by some an "American Brand" or as an item representing America.

The identification with the spread of American culture has led to the pun "Coca-Colanization".

The drink is also often a metonym for the Coca-Cola Company.

There are some consumer boycotts of Coca-Cola in Arab countries due to Coke's early investment in Israel during the Arab League boycott of Israel (its competitor Pepsi stayed out of Israel).

Mecca Cola and Pepsi have been successful alternatives in the Middle East.

A Coca-Cola fountain dispenser (officially a Fluids Generic Bioprocessing Apparatus-2 or FGBA-2) was developed for use on the Space Shuttle as a test bed to determine if carbonated beverages can be produced from separately stored carbon dioxide, water and flavored syrups and determine if the resulting fluids can be made available for consumption without bubble nucleation and resulting foam formation.

39

Company Profile

PepsiCo Inc. is an American multinational corporation headquartered in Purchase, New York, United States, with interests in the manufacturing, marketing and distribution of grain-based snack foods, beverages, and other products. PepsiCo was formed in 1965 with the merger of the Pepsi-Cola Company and Frito-Lay, Inc. PepsiCo has since expanded from its namesake product Pepsi to a broader range of food and beverage brands, the largest of which include an acquisition of Tropicana in 1998 and a merger with Quaker Oats in 2001 – which added the Gatorade brand to its portfolio as well.

PepsiCo in brief-

As of 2009, 19 of PepsiCo's product lines generated retail sales of more than $1 billion each, and the company’s products were distributed across more than 200 countries, resulting in annual net revenues of $43.3 billion. Based on net revenue, PepsiCo is the second largest food & beverage business in the world. Within North America, PepsiCo is ranked (by net revenue) as the largest food and beverage business.

Indra Krishnamurthy Nooyi has been the chief executive of PepsiCo since 2006, and the company employed approximately 285,000 people worldwide as of 2010. The company’s beverage distribution and bottling is conducted by PepsiCo as well as by licensed bottlers in certain regions. PepsiCo is a SIC 2080 (beverage) company.

Origins-

The recipe for Pepsi, the soft drink, was first developed in the 1890s by a New Bern, North Carolina pharmacist and industrialist, Caleb Bradham, who named it "Pepsi-Cola" in 1898. As the cola developed in popularity, he created the Pepsi-Cola Company in 1902 and registered a patent for his recipe in 1903. The Pepsi-Cola Company was first incorporated in the state of Delaware in 1919. The company went bankrupt in 1931 and on June 8 of that year the trademark and syrup recipe was bought by Charles Guth who owned a syrup manufacturing business in Baltimore, Maryland. Guth was also the president of Loft, Incorporated, a leading candy manufacturer and used the company's labs and chemists to reformulate the syrup. He further contracted to stock the soda in Loft's large chain of candy shops and restaurants, which were known for their soda

40

fountains, used Loft resources to promote Pepsi, and moved the soda company to a location close by Loft's own facilities in New York City. In 1935 the shareholders of Loft sued Guth for his 91% stake of PepsiCo in the landmark Guth v. Loft Inc.. Loft won the suit and on May 29, 1941 formally absorbed Pepsi into Loft, which was then rebranded as Pepsi Cola Company that same year. (Loft restaurants and candy stores were spun off at this time.) In the early 1960s the company product line expanded with the creation of Diet Pepsi and purchase of Mountain Dew.

Separately, the Frito Company and H.W. Lay & Company – two American potato and corn chip snack manufacturers – began working together in 1945 with a licensing agreement allowing H.W. Lay to distribute Fritos in the Southeastern United States. The companies merged to become Frito-Lay, Inc. in 1961.

In 1965, the Pepsi-Cola Company merged with Frito-Lay, Inc. to become PepsiCo, Inc., the company it is known as at present. At the time of its foundation, PepsiCo was incorporated in the state of Delaware and headquartered in Manhattan, New York. The company's headquarters were relocated to its still-current location of Purchase, New York in 1970, and in 1986 PepsiCo was reincorporated in the state of North Carolina.

PepsiCo was the first company to stamp expiration dates, starting in March 1994.

Acquisitions and divestments-

Between the late-1970s and the mid-1990s, PepsiCo expanded via acquisition of businesses outside of its core focus of packaged food and beverage brands; however it exited these non-core business lines largely in 1997, selling some, and spinning off others into a new company named Tricon Global Restaurants, which later became known as Yum! Brands, Inc. PepsiCo also previously owned several other brands that it later sold, in order to allow it to return focus to its primary snack food and beverage lines, according to investment analysts reporting on the divestments in 1997. Brands formerly owned by PepsiCo include: Pizza Hut, Taco Bell, KFC, Hot 'n Now, East Side Mario's, D'Angelo Sandwich Shops, Chevys Fresh Mex, California Pizza Kitchen, Stolichnaya (via licensed agreement), Wilson Sporting Goods and North American Van Lines.

The divestments concluding in 2007 were followed by multiple large-scale acquisitions, as PepsiCo began to extend its operations beyond soft drinks and snack foods into other lines of foods and beverages. PepsiCo purchased the orange juice company Tropicana Products in 1998, and merged with Quaker Oats

41

Company in 2001, adding with it the Gatorade sports drink line and other Quaker Oats brands such as Chewy Granola Bars and Aunt Jemima, among others.[20]

In August 2009, PepsiCo made a $7 billion offer to acquire the two largest bottlers of its products in North America: Pepsi Bottling Group and PepsiAmericas. In 2010 this acquisition was completed, resulting in the formation of a new wholly owned subsidiary of PepsiCo, Pepsi Beverages Company. In February 2011, the company made its largest international acquisition by purchasing a two-thirds (majority) stake in Wimm-Bill-Dann Foods, a Russian food company which produces milk, yogurt, fruit juices and dairy products. When it acquired the remaining 23% stake of Wimm-Bill-Dann Foods in October 2011, PepsiCo became the largest food and beverage company in Russia.

Restructuring-

In February 2012 ahead, CEO of PepsiCo Inc. plans to cut 8,700 jobs or about 3 percent of the PepsiCo's global workforce and boost marketing spending for its brand by as much as $600 million. It may save about $1.5 billion by 2014.

Competition-

The Coca-Cola Company has historically been considered PepsiCo’s primary competitor in the beverage market, and in December 2005, PepsiCo surpassed The Coca-Cola Company in market value for the first time in 112 years since both companies began to compete. In 2009, the Coca-Cola Company held a higher market share in carbonated soft drink sales within the U.S.In the same year, PepsiCo maintained a higher share of the U.S. refreshment beverage market, however, reflecting the differences in product lines between the two companies. As a result of mergers, acquisitions and partnerships pursued by PepsiCo in the 1990s and 2000s, its business has shifted to include a broader product base, including foods, snacks and beverages. The majority of PepsiCo's revenues no longer come from the production and sale of carbonated soft drinks. Beverages accounted for less than 50 percent of its total revenue in 2009. In the same year, slightly more than 60 percent of PepsiCo's beverage sales came from its primary non-carbonated brands, namely Gatorade and Tropicana.

PepsiCo's Frito-Lay and Quaker Oats brands hold a significant share of the U.S. snack food market, accounting for approximately 39 percent of U.S. snack food sales in 2009. One of PepsiCo's primary competitors in the snack food market overall is Kraft Foods, which in the same year held 11 percent of the U.S. snack market share.

42

Products and brands-

Largest PepsiCo Brands (based on 2009 retail sales)Brand

Pepsi   

Mountain Dew   

Lay's potato chips   

Gatorade   

Diet Pepsi   

Tropicana beverages   

7UP (outside U.S.)   

Doritos tortilla chips   

Lipton teas (PepsiCo/Unilever partnership)   

Quaker foods and snacks   

Cheetos   

Mirinda   

Ruffles potato chips   

Aquafina bottled water   

Pepsi Max   

Tostitos tortilla chips   

Sierra Mist   

Fritos corn chips

Walkers potato crisps   

43

PepsiCo’s product mix as of 2012 (based on worldwide net revenue) consists of 63 percent foods, and 37 percent beverages. On a worldwide basis, the company’s current products lines include several hundred brands that in 2009 were estimated to have generated approximately $108 billion in cumulative annual retail sales.

The primary identifier of companies' main brands within the food and beverage industry are those which generate annual sales exceeding $1 billion, and 19 of PepsiCo's brands met this description as of 2009: Pepsi-Cola, Mountain Dew, Lay's, Gatorade, Tropicana, 7Up, Doritos, Lipton Teas, Quaker Foods, Cheetos, Mirinda, Ruffles, Aquafina, Pepsi Max, Tostitos, Sierra Mist, Fritos, and Walker's.

Areas of business-

The structure of PepsiCo's global operations has shifted multiple times in its history as a result of international expansion, and as of 2010 it is separated into four main divisions:[31] PepsiCo Americas Foods, PepsiCo Americas Beverages, PepsiCo Europe, and PepsiCo Asia, Middle East and Africa. As of 2009, 71 percent of the company’s net revenues came from North and South America, 16 percent from Europe and 13 percent from Asia, the Middle East and Africa.[32]

Approximately 285,000 people are employed by PepsiCo worldwide as of 2010.[33]

PepsiCo Americas Foods-

PepsiCo Americas Foods consists of the company’s food and snack operations in North and South America. This operating division is further segmented into Frito-Lay North America, Quaker Foods & Snacks, Sabritas, Gamesa, and Latin America Foods. Food and snack sales in North and South America combined contributed 48 percent of PepsiCo’s net revenue in 2009.

Frito-Lay North America, the result of a merger in 1961 between the Frito Company and the H.W. Lay Company, produces the top selling line of snack foods in the U.S. Its main brands in the U.S., Canada and Mexico and include Lay's and Ruffles potato chips, Doritos tortilla chips, Tostitos tortilla chips and dips, Cheetos cheese flavored snacks, Fritos corn chips, Rold Gold pretzels, Sun Chips and Cracker Jack popcorn. Products made by this division are sold to independent distributors and retailers, and are transported from Frito-Lay's manufacturing

44

plants to distribution centers, principally in vehicles owned and operated by the company.

Quaker Foods North America, created following PepsiCo’s acquisition of the Quaker Oats Company in 2001, manufactures, markets and sells Quaker Oatmeal, Rice-A-Roni, Cap'n Crunch and Life cereals, as well as Near East side dishes within North America. This division also owns and produces the Aunt Jemima brand, which as of 2009 was the top selling line of syrups and pancake mixes within this region.

Sabritas and Gamesa are two of PepsiCo’s food and snack business lines headquartered in Mexico, and they were acquired by PepsiCo in 1966 and 1990, respectively. Sabritas markets Frito-Lay products in Mexico, including local brands such as Poffets, Rancheritos, Crujitos and Sabritones. Gamesa is the largest manufacturer of cookies in Mexico, distributing brands such as Emperador, Arcoiris and Marías Gamesa.

PepsiCo’s Latin America Foods (Spanish: Snacks América Latina) operations market and sell primarily Quaker- and Frito-Lay-branded snack foods within Central and South America, including Argentina, Brazil, Peru and other countries in this region. Snacks América Latina purchased Peruvian company Karinto S.A.C. including its production company Bocaditas Nacionales (with three production facilities in Peru) from the Hayashida family of Lima in 2009, adding the Karito brand to its product line, including Cuates, Fripapas, and Papi Frits.

PepsiCo Americas Beverages-

This division contributed 23 percent of PepsiCo’s net revenue as of 2009, and involves the manufacture (and in some cases licensing), marketing and sales of both carbonated and non-carbonated beverages in North, Central and South America. The main brands distributed under this division include Pepsi, Mountain Dew, Gatorade, 7 Up (outside the U.S.), Tropicana Pure Premium orange juice, Sierra Mist, SoBe Lifewater, Tropicana juice drinks, AMP Energy, Naked Juice and Izze. Aquafina, the company’s bottled water brand, is also marketed and licensed through PepsiCo Americas Beverages.

PepsiCo also has formed partnerships with several beverage brands it does not own, in order to distribute these or market them with its own brands. As of 2010, its partnerships include: Starbucks (Frappuccino, DoubleShot and Iced Coffee), Unilever’s Lipton brand (Lipton Brisk and Lipton Iced Tea), and Dole (licensed juices and drinks).

45

The company started a new market strategy to sell their Pepsi Cola product in Mexico, stating that about one third of the population has difficulty pronouncing "Pepsi". They started manufacturing and selling their product under the label 'Pecsi', the advertisement campaign features the Mexican soccer celebrity Cuauhtemoc Blanco. This is not the first time it has happened, back in 2009, PepsiCo used the same strategy successfully in Argentina.

PepsiCo Europe-

PepsiCo began to expand its distribution in Europe in the 1980s, and in 2009 it made up 16 percent of the company's global net revenue.[29] Unlike PepsiCo’s Americas business segments, both foods and beverages are manufactured and marketed under one umbrella division in this region, known as PepsiCo Europe. The primary brands sold by PepsiCo in Europe include Pepsi-Cola beverages, Frito-Lay snacks, Tropicana juices and Quaker food products, as well as regional brands unique to Europe such as Walkers crisps, Copella, Paw Ridge, Snack-a-Jack, Duyvis and others. PepsiCo also distributes the soft drink 7UP in Europe via license agreement.

PepsiCo's European presence expanded in Russia in 2009 as the company announced a $1B investment, and with its acquisition of Russian juice and dairy product brand Wimm-Bill-Dann Foods in December 2010 and Lebedyansky juice producer in March 2008.

PepsiCo Asia, Middle East & Africa-

The most recently created operating division of PepsiCo covers Asia, the Middle East and Africa. In addition to the production and sales of several worldwide Pepsi-Cola, Quaker Foods and Frito-Lay beverage and food product lines (including Pepsi and Doritos), this segment of PepsiCo’s business markets regional brands such as Mirinda, Kurkure and Red Rock Deli, among others. While PepsiCo owns its own manufacturing and distribution facilities in certain parts of these regions, more of this production is conducted via alternate means such as licensing (which it does with Aquafina), contract manufacturing, joint ventures and affiliate operations. PepsiCo’s businesses in these regions, as of 2009, contributed 13 percent to the company's net revenue worldwide.

Corporate governance-

Headquartered in Purchase, New York, with research and development headquarters in Valhalla, New York, PepsiCo’s Chairman and CEO is Indra

46

Nooyi. The board of directors is composed of eleven outside directors as of 2010, including Ray Lee Hunt, Shona L. Brown, Victor Dzau, Arthur C. Martinez, Sharon Percy Rockefeller, Daniel Vasella, Dina Dublon, Ian M. Cook, Alberto Ibargüen, James J. Schiro and Lloyd G. Trotter. Former top executives at PepsiCo include Steven Reinemund, Roger Enrico, D. Wayne Calloway, John Sculley, Michael H. Jordan, Donald M. Kendall, Christopher A. Sinclair and Alfred Steele.

On 1 October 2006, former Chief Financial Officer and President Indra Nooyi replaced Steve Reinemund as Chief Executive Officer. Nooyi remained as the corporation's president, and became Chairman of the Board in May 2007, later (in 2010) being named No.1 on Fortune's list of the "50 Most Powerful Women" and No.6 on Forbes' list of the "World's 100 Most Powerful Women". PepsiCo received a 100 percent rating on the Corporate Equality Index released by the LGBT-advocate group Human Rights Campaign starting in 2004, the third year of the report.

Headquarters-

PepsiCo headquarters

The PepsiCo headquarters are located in Purchase, New York. It was one of the last architectural works by Edward Durell Stone. It consists of seven three story buildings. Each building is connected to its neighbor through a corner. The property includes the Donald M. Kendall Sculpture Gardens with 45 contemporary sculptures open to the public. Works include those of Alexander Calder, Henry Moore, and Auguste Rodin. Westchester Magazine stated "The buildings’ square blocks rise from the ground into low, inverted ziggurats, with each of the three floors having strips of dark windows; patterned pre-cast concrete panels add texture to the exterior surfaces." In 2010 the magazine ranked the building as one of the ten most beautiful buildings in Westchester County.

47

At one time PepsiCo had its headquarters in 500 Park Avenue in Midtown Manhattan, New York City. In 1956 Pepsico paid $2 million for the original building. PepsiCo built the new 500 Park Avenue in 1960. In 1966, Mayor of New York City John Lindsay started a private campaign to convince PepsiCo to remain in New York City. Six months later, the company announced that it was moving to 112 acres (45 ha) of the Blind Brook Polo Club in Westchester County. After PepsiCo left the Manhattan building, it became known as the Olivetti Building.

Charitable activities-

Headquarters of Pepsi-Cola Venezuela (ES)

PepsiCo has maintained a philanthropic program since 1962 called the PepsiCo Foundation, in which it primarily funds “nutrition and activity, safe water and water usage efficiencies, and education,” according to the foundation’s website. In 2009, $27.9 million was contributed through this foundation, including grants to the United Way and YMCA, among others.

In 2009, PepsiCo launched an initiative which the company calls the Pepsi Refresh Project, in which individuals submit and vote on charitable and nonprofit collaborations. The main recipients of grants as part of the refresh project are community organizations with a local focus and nonprofit organizations, such as a high school in Michigan which – as a result of being selected – received $250,000 in 2010 towards construction of a fitness room for high school students. Following the Gulf of Mexico oil spill which occurred in the spring of 2010, PepsiCo donated

48

$1.3 million to grant winners in determined by popular vote. As of October, 2010, the company had provided a cumulative total of $11.7 million in funding, spread across 287 ideas of participant projects from 203 cities in North America. In late 2010, the refresh project was reported to be expanding to include countries outside of North America in 2011.

Environmental record and product nutrition-

According to its 2009 annual report, PepsiCo states that it is “committed to delivering sustainable growth by investing in a healthier future for people and our planet”, which it has defined in its mission statement since 2006 as “Performance with Purpose”. According to news and magazine coverage on the subject in 2010, the objective of this initiative is to increase the number and variety of healthier food and beverage products made available to its customers, employ a reduction in the company’s environmental impact, and to facilitate diversity and healthy lifestyles within its employee base. Its activities in regards to the pursuit of its goals – namely environmental impacts of production and the nutritional composition of its products – have been the subject of recognition from health and environmental advocates and organizations, and at times have raised concerns among its critics. As the result of a more recent focus on such efforts, “critics consider (PepsiCo) to be perhaps the most proactive and progressive of the food companies", according to former New York Times food industry writer Melanie Warner in 2010.

Environmental record-

Water usage (India, U.S., U.K.)

PepsiCo’s usage of water was the subject of controversy in India in the early and mid 2000s in part because of the company’s alleged impact on water usage in a country where water shortages are a perennial issue. In this setting, PepsiCo was perceived by India-based environmental organizations as a company that diverted water to manufacture a discretionary product, making it a target for critics at the time.

As a result, in 2003 PepsiCo launched a country-wide program to achieve a “positive water balance” in India by 2009. In 2007, PepsiCo’s CEO Indra Nooyi made a trip to India to address water usage practices in the country, prompting

49

prior critic Sunita Narain, director of the Centre for Science & Environment (CSE), to note that PepsiCo "seem(s) to be doing something serious about water now." According to the company’s 2009 corporate citizenship report, as well as media reports at the time, the company (in 2009) replenished nearly six billion liters of water within India, exceeding the aggregate water intake of approximately five billion liters by PepsiCo’s India manufacturing facilities.

Water usage concerns have arisen at times in other countries in which PepsiCo operates. In the U.S., water shortages in certain regions resulted in increased scrutiny on the company’s production facilities, which were cited in media reports as being among the largest water users in cities facing drought – such as Atlanta, Georgia. In response, the company formed partnerships with non-profit organizations such as the Earth Institute and Water.org, and in 2009 began cleaning new Gatorade bottles with purified air instead of rinsing with water, among other water conservation practices. In the United Kingdom, also in response to regional drought conditions, PepsiCo snacks brand Walkers' reduced water usage at its largest potato chip facility by 45 percent between the years 2001 and 2008. In doing so, the factory employed machinery which captured the water naturally contained in potatoes, and used that water to largely offset the need to bring in outside water to the factory.

As a result of water reduction practices and efficiency improvements, PepsiCo in 2009 saved more than 12 billion liters of water worldwide, compared to its 2006 water usage. Environmental advocacy organizations including the Natural Resources Defense Council and individual critics such as Rocky Anderson (mayor of Salt Lake City, Utah) voiced concerns in 2009, noting that the company could conserve additional water by refraining from the production of discretionary products such as Aquafina. The company maintained its positioning of bottled water as “healthy and convenient”, while also beginning to partially offset environmental impacts of such products through alternate means, including packaging weight reduction.

Pesticide regulation (India)-

PepsiCo’s India operations were met with substantial resistance in 2003 and again in 2006, when an environmental organization in New Delhi made the claim that, based on its research, it believed that the levels of pesticides in PepsiCo (along with those from rival Coca-Cola Company), exceeded a set of proposed safety standards on soft drink ingredients that had been developed by the Bureau of Indian Standards. PepsiCo denied the allegations, and India's health ministry has

50

also dismissed the allegations – both questioning the accuracy of the data compiled by the CSE, as it was tested by its own internal laboratories without being verified by outside peer review. The ensuing dispute prompted a short-lived ban on the sale of PepsiCo and Coca-Cola Company soft drinks within India's southwestern state of Kerala in 2006; however this ban was reversed by the Kerala High Court one month later.

In November, 2010, the Supreme Court of India invalidated a criminal complaint filed against PepsiCo India by the Kerala government, on the basis that the beverages did meet local standards at the time of the allegations. The court ruling stated that the “percentage of pesticides” found in the tested beverages was “within the tolerance limits subsequently prescribed in respect of such product,” since at the time of testing “there was no provision governing pesticide adulteration in cold drinks.” In 2010, PepsiCo was among the 12 multinational companies that displayed “the most impressive corporate social responsibility credentials in emerging markets”, as determined by the U.S. Department of State. PepsiCo's India unit received recognition on the basis of its water conservation and safety practices and corresponding results.

Packaging and recycling-

Environmental advocates have raised concern over the environmental impacts surrounding the disposal of PepsiCo’s bottled beverage products in particular, as bottle recycling rates for the company’s products in 2009 averaged 34 percent within the U.S. The company has employed efforts to minimize these environmental impacts via packaging developments combined with recycling initiatives. In 2010, PepsiCo announced a goal to create partnerships that prompt an increase the beverage container recycling rate in the U.S. to 50 percent by 2018.

One strategy enacted to reach this goal has been the placement of interactive recycling kiosks called “Dream Machines” in supermarkets, convenience stores and gas stations, with the intent of increasing access to recycling receptacles. The use of resin to manufacture its plastic bottles has resulted in reduced packaging weight, which in turn reduces the volume of fossil fuels required to transport certain PepsiCo products. The weight of Aquafina bottles was reduced nearly 40 percent, to 15 grams, with a packaging redesign in 2009. Also in that year, PepsiCo brand Naked Juice began production and distribution of the first 100 percent post-consumer recycled plastic bottle.

51

On March 15, 2011, PepsiCo unveiled the world's first plant-based PET bottle. The bottle is made from plant-based materials, such as switch grass, corn husks, and pine bark, and is 100% recyclable. PepsiCo plans to use more by-products (of their manufacturing processes) such as orange peels and oat hulls in the bottles. PepsiCo has identified methods to create a molecular structure that is the same as normal petroleum-based PET—which will make the new bottle technology, dubbed "Green Bottle", feel the same as normal PET. PepsiCo will pilot production in 2012, and upon successful completion of the pilot, intends moving to full-scale commercialization.

Energy usage and carbon footprint-

PepsiCo, along with other manufacturers in its industry, has drawn criticism from environmental advocacy groups for the production and distribution of plastic product packaging, which consumed an additional 1.5 billion US gallons (5,700,000 m3) of petrochemicals in 2008. These critics have also expressed apprehension over the production volume of plastic packaging, which results in the emission of carbon dioxide. Beginning largely in 2006, PepsiCo began development of more efficient means of producing and distributing its products using less energy, while also placing a focus on emissions reduction. In a comparison of 2009 energy usage with recorded usage in 2006, the company’s per-unit use of energy was reduced by 16 percent in its beverage plants and 7 percent in snack plants.

In 2009, Tropicana (owned by PepsiCo) was the first brand in the U.S. to determine the carbon footprint of its orange juice product, as certified by the Carbon Trust, an outside auditor of carbon emissions. Also in 2009, PepsiCo began the test deployment of so-called “green vending machines,” which reduce energy usage by 15 percent in comparison to average models in use. It developed these machines in coordination with Greenpeace, which described the initiative as “transforming the industry in a way that is going to be more climate-friendly to a great degree.”

Product nutrition-

Product diversity

From its founding in 1965 until the early 1990s, the majority of PepsiCo’s product line consisted of carbonated soft drinks and convenience snacks. PepsiCo broadened its product line substantially throughout the 1990s and 2000s with the acquisition and development of what its CEO deemed as “good-for-you” products,

52

including Quaker Oats, Naked Juice and Tropicana orange juice. Sales of such healthier-oriented PepsiCo brands totaled $10 billion in 2009, representing 18 percent of the company’s total revenue in that year. This movement into a broader, healthier product range has been moderately well received by nutrition advocates; though commentators in this field have also suggested that PepsiCo market its healthier items as aggressively as less-healthy core products.

In response to shifting consumer preferences and in part due to increasing governmental regulation, PepsiCo in 2010 indicated its intention to grow this segment of its business, forecasting that sales of fruit, vegetable, whole grain and fiber-based products will amount to $30 billion by 2020. To meet this intended target, the company has said that it plans to acquire additional health-oriented brands while also making changes to the composition of existing products that it sells.

Ingredient changes-

Public health advocates have suggested that there may be a link between the ingredient makeup of PepsiCo’s core snack and carbonated soft drink products and rising rates of health conditions such as obesity and diabetes. The company aligns with personal responsibility advocates, who assert that food and beverages with higher proportions of sugar or salt content are fit for consumption in moderation by individuals who also exercise on a regular basis.

Changes to the composition of its products with nutrition in mind have involved reducing fat content, moving away from trans-fats, and producing products in calorie-specific serving sizes to discourage overconsumption, among other changes. One of the earlier ingredient changes involved sugar and caloric reduction, with the introduction of Diet Pepsi in 1964 and Pepsi Max in 1993 – both of which are variants of their full-calorie counterpart, Pepsi. More recent changes have consisted of saturated fat reduction, which Frito-Lay reduced by 50% in Lay's and Ruffles potato chips in the U.S. between 2006 and 2009. Also in 2009, PepsiCo’s Tropicana brand introduced a new variation of orange juice (Trop50) sweetened in part by the plant Stevia, which reduced calories by half. Since 2007, the company also made available lower-calorie variants of Gatorade, which it calls “G2”.

Distribution to children-

53

As public perception placed additional scrutiny on the marketing and distribution of carbonated soft drinks to children, PepsiCo announced in 2010 that by 2012, it will remove beverages with higher sugar content from primary and secondary schools worldwide. It also, under voluntary guidelines adopted in 2006, replaced “full-calorie” beverages in U.S. schools with “lower-calorie” alternatives, leading to a 95 percent reduction in the 2009 sales of full-calorie variants in these schools in comparison to the sales recorded in 2004. In 2008, in accordance with guidelines adopted by the International Council of Beverages Associations, PepsiCo eliminated the advertising and marketing of products that do not meet its nutrition standards, to children under the age of 12.

In 2010, First Lady Michelle Obama initiated a campaign to end childhood obesity (titled Let's Move!), in which she sought to encourage healthier food options in public schools, improved food nutrition labeling and increased physical activity for children. In response to this initiative, PepsiCo, along with food manufacturers Campbell Soup, Coca-Cola, General Mills and others in an alliance referred to as the "Healthy Weight Commitment Foundation", announced in 2010 that the companies will collectively cut one trillion calories from their products sold by the end of 2012 and 1.5 trillion calories by the end of 2015.

Marketing strategies of the company

7’Ps Of Marketing-

Product-PepsiCo‘s product are very much good .they are the fmcg product. Everybody wants to take that product .Even in Coca-Cola also .That is the fmcg product. They both are competitor. In the summer season the demand of this product are in high scale. People want this product for standard also. All the thing I have written in the beginning.

Price –The price of product is very cheap .according to the normal people. Everybody can afford it .second thing is that there are big competition between coke and Pepsi .so they considered each other very seriously.

Place –First thing I want to say that this is a fmcg product so it can fit anywhere. Second thing it has given a very good standard to the every class family. It sells worldwide.

54

Promotion- There is no requirement of promotion .because this is become the need of common people.so it has very vast area to do anything. Only promotion that time required when the company start new product in the market.

People-The companies people are very much talented and they are ready todo work very honestly .and the need is high in the market so the shopkeeper do more and more for that by own.

Process- The process is not the big issue. PSR give all the distribution and the distribution channel are there .the give the target to the PSR and they do the distribution.

Physical Evidence- There is not very much required for the Physical Evidence . Only A good class people should should be there. So that become the market for this .

Mission- Our mission is to be the world's premier consumer products company focused on convenient foods and beverages. We seek to produce financial rewards to investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in everything we do, we strive for honesty, fairness and integrity.

Vision- PepsiCo's responsibility is to continually improve all aspects of the world in which we operate - environment, social, economic - creating a better tomorrow than today."

Our vision is put into action through programs and a focus on environmental stewardship, activities to benefit society, and a commitment to build shareholder value by making PepsiCo a truly sustainable company.

SWOT ANALYSIS

Strength-The strength of the PepsiCo is that it has covered a vast area. The distribution is good in much area. In every area of world it is there. The taste is

55

good. Consumer loved a lot .it has good diversification by depth, width and length.so these are the strength of Pepsi.

Weakness-It does not have any weakness. Only in the company they do not have the competitor or thumps up.

Opportunity-The opportunity is that it has covered a vast area. Only two competitors are there so it is no 1 in area covering in my research. So it should do the distribution properly.

Threats-The big threat is there. If employee will not do the proper work so how can the shopkeeper will take the product so they will switch over definitely .That, why it should be considered.

Research Methodology

Research is the Search for Knowledge It is an Art of Scientific Investigation According to Redman and Mory, Research is a “Systematized effort to gain

new knowledge” Research is an original addition to the available knowledge, which

contributes to it’s further advancement In sum, Research is the search for knowledge, using objective and

systematic methods to find solution to a problem

Objectives of Research-

To gain familiarity with new insights into a phenomenon To accurately portray the characteristics of a particular individual, group, or

a situation To analyze the frequency with which something occurs To examine the Hypothesis of a casual relationship between two variables

Research Methods Vs Methodology-

56

Research Methods are the methods that the researcher adopts for conducting the research Studies

Research Methodology is the way in which research problems are solved systematically.

It is the Science of studying how research is conducted Scientifically

Research Approaches-

Quantitative Approach

(Uses experimental, inferential and simulation approaches to research)

Qualitative Approach

(Uses techniques like in-depth interview, focus group interviews)

Types of Research-

Descriptive Analytical Applied Fundamental Quantitative Qualitative Conceptual Empirical Other Types

Descriptive Vs Analytical-

In Descriptive Research, the Researcher has to only report what is happening or what has happened.

In Analytical Research, the Researcher has to use the already available facts or information, and analyse them to make a critical evaluation of the subject

Applied Vs Fundamental-

57

An attempt to find solution to an immediate problem encountered by a firm, an Industry, a business organization, or the Society is known as Applied Research

Gathering knowledge for knowledge’s sake is ‘Pure’ or ‘Basic’ or ‘Fundamental’ Research

Quantitative Vs Qualitative-

Quantitative Research involves the measurement of quantity or amount. (ex: Economic & Statistical methods)

Qualitative Research is concerned with the aspects related to or involving quality or Kind.(ex: Motivational Research involving behavioural Sciences)

Conceptual Vs Empirical-

The Research related to some abstract idea or theory is known as Conceptual Research. (Ex: Philosophers and Thinkers using this to developing new concepts)

Empirical Research relies on the observation or experience with hardly any regard for theory and system.

Other Types of Research-

One-time or Longitudinal Research (On the basis time) Laboratory Research or Field-setting or Simulational Research (On the basis

of environment) Historical Research

METHODS OF DATA COLLECTION-

There are 2 types of data: primary and secondary Primary data is collected by the researcher himself using surveys,

observation and experiments Secondary data is already available beforehand Advantages and disadvantages of both types of data?????????

Secondary Data Sources-

58

Primary Data Collection-

There are two major methods of primary data collection

Survey: Gathering info through respondents for any pre established research objective

Observation: watching and recording the behavior of test subjects without any interaction with them

Evaluation Criteria for Survey Methods-

Cost Time Response rate Speed of data collection Survey coverage area Bias due to Interviewer Quantity of data Anonymity of the respondents

59

Secondary Source

External

Books, periodicals etc Govt Sources

Computerized commercial and

other data sources

Media resources

Internal

Internal Records

Question posing Question diversity

Observation -

Observation research can be broadly classified as:

Direct vs Indirect: observing behavior vs observing the outcome of behavior Structured vs unstructured: following a guideline vs not following a

guideline Disguised vs undisguised: subject unaware vs subject aware Human vs Mechanical

Further Classification of Observation Methods-

Personal Observation Mechanical observation Audits (examination of particular records or inventory analysis of the items

under investigation) Content analysis (research technique used to objectively and systematically

make inferences about the intentions, attitudes and values of individuals by identifying specified characteristics in textual messages)

Physical Trace Analysis(involves collection of data through physical trace of the subjects in terms of understanding their past behavior)

Sample Survey-

Sample is a certain portion of the population A Researcher adopts a Technique to select the items of the Sample from

the Population and that is called as Sampling Design. Sample design must be done before Data Collection.

Steps in Sample Design-

Type of Interview Sampling Unit Source List Size of Sample Parameters of Interest Budgetary Constraint Sampling Procedure

60

Steps in Sampling Design (Explained)-

Define the Universe to be studied

(Finite Universe: Population of a City, No. of Workers in a factory)

(Infinite Universe: Stars in the Sky)

Sampling Unit:

(Geographical Area: State, District, Village)

(Social Unit: Family, School, Religious Community)

Methods of Collecting Data-

Direct Personal Interview Indirect oral interviews Information from correspondents Mailed Questionnaire methods Schedule sent through interviewers

Data Analysis

Research of Outlets-

-----Total outlet -318

Pepsi Sheet

Area Pepsi Avaiable

Coke Available

Pepsi Cooler

Coke Cooler

Total outlet

1 Pakke pul Se IIM

26 18 7 12

2 20 19 17 163 21 23 10 144 24 17 13 175 14 6 3 3Total 105 83 50 62 137

61

6 Aalambag 28 22 15 127 27 28 13 208 20 20 9 139 29 30 11 1710 15 15 3 5Total 119 115 51 67 12511 Ashbag,Nakkash 30 19 23 1412 26 15 21 16Total 56 34 44 30 56

Total Pepsi Selling 280Total Coke Selling 232Total Pepsi Cooler 145Total Coke Cooler 159

62

1 Pakke pul Se II

M

2 Pakke pul Se II

M

3 Pakke pul Se II

M

4 Pakke pul Se II

M

5 Pakke pul Se II

M6 Aalambag

7 Aalambag

8 Aalambag

9 Aalambag

10 Aalambag

11 Ashbag,Nakkash

12 Ashbag,Nakkash

Total Aalambag

Total Ashbag,Nakkash

Total Pakke pul Se II

M

0

20

40

60

80

100

120

Sum of Pepsi AvaiableSum of Pepsi CoolerSum of Coke CoolerSum of Coke Available

63

Analysis of area-

1-Visi Index-

Pepsi Cooler/Coke Cooler

Pakke Pul Se IIM-

Pepsi Cooler =50Coke Cooler =62Ratio =0.8

Pakke Pul Se IIM- Pepsi CoolerPakke Pul Se IIM- Coke Cooler

Aalambag-Pepsi Cooler =51Coke Cooler =67

64

Average =.76

Aalambag- Pepsi CoolerAalambag- Coke Cooler

Aashbag , Nakkash-

Pepsi Cooler =44Coke Cooler =30

Average = 1.4

Aashbag , Nakkash Pepsi CoolerAashbag , Nakkash Coke Cooler

Overall Visi Index

Pepsi Cooler =145Coke Cooler =159

Average =.91

65

Pepsi Cooler

Coke Cooler

Ove

rall

Visi

Inde

x

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Series1

2-CCX Exclusive-

PI/CCX

Pkke Pul Se IIM- PEPSI 105

COKE 83AVERAGE 1.26

PEPSI

COKE

AVERAGE

Pkke

Pul

Se

IIM-

0 20 40 60 80 100 120

Series1

Aalambag- PEPSI 119COKE 115AVERAG 1.03

66

E

PEPSICOKE

AVERAGEAalambag-

0

20

40

60

80

100

120

Series1

Aashbag ,Nakkash PEPSI 56

COKE 34AVERAGE 1.64

PEPSICOKE

AVERAGEAashbag ,Nakkash

0

10

20

30

40

50

60

Series1

Overall CCX Exclusive PEPSI 280

67

COKE 232AVERAGE 1.2

PEPSICOKE

AVERAGEOverall CCX Exclusive

0

50

100

150

200

250

300

Series1

68

All in One Graph Chart

PEPS

I

COKE

AVER

AGE

PEPS

I

COKE

AVER

AGE

PEPS

I

COKE

AVER

AGE

PEPS

I

COKE

AVER

AGE

Pkke Pul Se IIM- Aalambag- Aashbag ,Nakkash Overall CCX Ex-clusive

0

50

100

150

200

250

300

Series1

3-Pepsi Selling Vs Coke Selling-

Pakke Pul Se IIM 50AalamBag 110Aashbag ,Nakkash 34 Overall Pepsi Selling Vs Coke Selling 194

69

Pakke P

ul Se IIM

AalamBag

Aashbag

,Nakkash

Overall

Pepsi S

elling V

s Coke

Sellin

g

020406080

100120140160180200

Series1

4-If come will you buy-According to Data –YES

According to me - If the service will better and if, it will generate the revenue .That time I will buy.

Question –What is good?

Answer-Pepsi is Good .Because its average is more than 1 every time.

Question-Which is to be taken care off?

Answer-Pakke Pul Se IIM-

Don’t give Receipt to the Shopkeeper Freeze is not Available No Scheme Don’t give better response Sell in high Price Proper Service is not there

70

Misbehave to the Shopkeeper

Aalambag-

Only Freeze Problem is there

Aashbag,Nakkash-

Only Freeze Problem

Question –What is your personal Suggestion ?

Answer-Pkke Pul Se IIM-

Service should be better ,if necessary for daily basis worker ,hire non-permanent worker for this summer season.

Shopkeeper take products in off season ,they also want in on season also, if they donot get ,they will switch.

Aalambag-

No Problem

Special Note-

Harshendra Sir doing a very Good Job. Saurabh (PSR) Is the most DELIGENT & RESPONSIBLE boy. (According

to the Shop Keeper).In the area of Saurabh Every where is Pepsi,more than Coke.

AshBag,Nakkash—

No Problem PSR is doing his work very properly.

71

Analysis of co-area’s-1-Pakke Pul Se IIM

A- Sitapur RoadB- BitauliC- Semra Gauri D- MohbullapurE- NaubastaF- GallamandiG- AaybaranpurH- Triveni NagarI- KhadraJ- IndalganjK- MadiyavL- ShrinagarM- Keshav NagarN- Naya PurvaO- Puraniya ChaurahaP- Gayatri NagarQ- Aajij Nagar

Sitapur Road

1-Visi Index- Pepsi Cooler/Coke Cooler

Pepsi Cooler 12 Coke Cooler 14

Average0.857143

72

Pepsi Cooler Coke Cooler

Average

0

2

4

6

8

10

12

14

Series1

2-CCX Exclusive- PI/CCX

Pepsi 20Coke 17

Average1.176471

PepsiCoke

Average

0

2

4

6

8

10

12

14

16

18

20

Series1

73

3-Pepsi Selling Vs Coke Selling- 11

4-If come will You Buy- Yes

Bitauli

1-Visi Index- Pepsi Cooler/Coke Cooler

Pepsi Cooler 3Coke Cooler 2Average 1.5

Pepsi CoolerCoke Cooler

Average

0

0.5

1

1.5

2

2.5

3

Series1

CCX Exclusive- PI/CCX

PI 3CCX 4Average 0.75

74

PI

CCX

Average

0 0.5 1 1.5 2 2.5 3 3.5 4

Series1

Pepsi Selling Vs Coke Selling- 2

If Come Will You Buy- Yes

SemraGauri1-Visi Index- Pepsi Cooler/Coke Cooler

Pepsi CoolerCoke CoolerAverage

75

Pepsi Cooler 1Coke Cooler 0Average 0

2-CCX Exclusive- PI/CCX

PI 5CCX 1Average 5

PI CCX Average0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

5

Series1

3-Pepsi Selling Vs Coke Selling-14-If come will you Buy- Yes

Mohbullpur

Visi Index-Pepsi Cooler /Coke Cooler

Pepsi Cooler 2Coke Cooler 4Average 0.5

76

Pepsi CoolerCoke Cooler

Average

0

0.5

1

1.5

2

2.5

3

3.5

4

Series1

CCX Exclusive-PI/CCX

PI 7CCX 4Average 1.75

PICCX

Average

0

1

2

3

4

5

6

7

Series1

Pepsi Selling Vs Coke Selling- 5

If Come will you Buy- yes

Naubasta

Visi Index-Pepsi Cooler /Coke Cooler

Pepsi 1

77

CoolerCoke Cooler 4Average 0.25

Pepsi CoolerCoke Cooler

Average

0

0.5

1

1.5

2

2.5

3

3.5

4

Series1

CCX Exclusive-PI/CCX

PI 7CCX 5Average 1.4

PI

CCX

Average

0 1 2 3 4 5 6 7

Series1

Pepsi Selling Vs Coke Selling-4

If Come will you Buy-yes

78

Gallmandi

Visi index-Pepsi cooler/ coke cooler

Pepsi Cooler 7Coke Cooler 5Ratio 1.4

Pepsi Cooler Coke Cooler

Ratio

0

1

2

3

4

5

6

7

Series1

CCX Exclusive-PI/CCX

Pepsi Coke

Ratio

0

1

2

3

4

5

6

7

Series1

79

Pepsi Selling Vs Coke Selling-3

If Come will you buy-yes

Ayabaranpur

Visi Index-PI cooler/ccx cooler

PI Cooler 2CCX Cooler 3

Ratio0.6666667

PI CoolerCCX Cooler

Ratio

0

0.5

1

1.5

2

2.5

3

Series1

CCX Exclusive-PI/CCX

PI 2CCX 3

Ratio0.6666667

80

PICCX

Ratio

0

0.5

1

1.5

2

2.5

3

Series1

Pepsi Selling Vs coke Selling-1

If come will you buy-yes

Triveni Nagar

Visiindex-PI Cooler/CCX Cooler

PI Cooler 12CCX Cooler 12Ratio 1

81

PI CoolerCCX Cooler

Ratio

0

2

4

6

8

10

12

Series1

CCX Exclusive-PI/CCX

PI 20CCX 18

Ratio1.111111

PI

CCX

Ratio

0 2 4 6 8 10 12 14 16 18 20

Series1

Pepsi Selling vs Coke selling-8

If come will you buy-yes

82

Khadra

Visi index-pi cooler/ccx cooler

PI Cooler 3CCX Cooler 3Ratio 1

PI CoolerCCX Cooler

Ratio

0

0.5

1

1.5

2

2.5

3

Series1

CCX exclusive-Pi/ccx

PI 14CCX 6

Ratio2.333333

83

PI

CCX

Ratio

0 2 4 6 8 10 12 14

Series1

Pepsi Selling vs coke selling-4

If come will you buy-yes

Indalganj

Visi index-pi cooler/ccx cooler

PI Cooler 2CCX Cooler 2Ratio 1

PI CoolerCCX Cooler

Ratio

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1.8

2

Series1

84

CCX Exclusive-PI/CCX

PI 3CCX 1Ratio 3

PI CCX

Ratio

0

0.5

1

1.5

2

2.5

3

Series1

Pepsi selling vs coke selling-0

If come will you buy-yes

Madiyav

Visi index-PI Cooler /CCX Cooler

PI Cooler 0CCX Cooler 2Ratio 0

85

PI Cooler CCX Cooler Ratio0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1.8

2

Series1

CCX Exclusive-PI/CCX

PI 1CCX 3

Ratio0.333333

PI CCX

Ratio

0

0.5

1

1.5

2

2.5

3

Series1

Pepsi selling vs coke selling-1

If come will you buy-Yes

Shrinagar

86

Visi index-PI Cooler/ CCX Cooler

PI Cooler 2CCX Cooler 1Ratio 2

PI CoolerCCX Cooler

Ratio

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1.8

2

Series1

CCX Exclusive –Pi/CCX

PI 4CCX 2Ratio 2

87

PI CCX

Ratio

0

0.5

1

1.5

2

2.5

3

3.5

4

Series1

Pepsi selling vs coke selling-3

If come will you buy- yes

Keshav Nagar

Visi Index-PI Cooler /CCX Cooler

PI Cooler 4CCX Cooler 4Ratio 1

PI CoolerCCX Cooler

Ratio

0

0.5

1

1.5

2

2.5

3

3.5

4

Series1

88

CCX Exclusive - PI/CCX

PI 5CCX 5Ratio 1

PI CCX

Ratio

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

5

Series1

Pepsi selling vs Coke Selling -4

If come will you Buy-yes

Bharat Nagar

Visi Index-PI Cooler/CCX Cooler

PI Cooler 0CCX Cooler 3Ratio 0

89

PI CoolerCCX Cooler

Ratio

0

0.5

1

1.5

2

2.5

3

Series1

CCX Exclusive-PI /CCX

PI 4CCX 6Ratio .6667

PI CCX

Ratio

0

1

2

3

4

5

6

Series1

Pepsi selling vs coke Selling-4

If come will you buy-yes

Naya Purva

Visi Index-PI Cooler/CCX Cooler

90

PI Cooler 1CCX Cooler 2Ratio 0.5

PI Cooler CCX Cooler Ratio0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1.8

2

Series1

CCX Exclusive-PI/CCX

PI 2CCX 4Ratio 0.5

PI CCX Ratio0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

Series1

91

Pepsi Selling vs Coke selling-3

If come will you Buy-Yes

Purniya Chauraha

Visi Index-PI Cooler/CCX Cooler

PI Cooler 1CCX Cooler 3

Ratio0.333333

PI CoolerCCX Cooler

Ratio

0

0.5

1

1.5

2

2.5

3

Series1

CCX Exclusive-PI/CCX

PI 2CCX 3

Ratio0.666667

92

PI

CCX

Ratio

0 0.5 1 1.5 2 2.5 3

Series1

Pepsi Selling vs Coke Selling -0

If Come will you buy –Yes

Gaytri Nagar

Visi index-PI Cooler /CCX Cooler

PI Cooler 1CCX Cooler 2Ratio 0.5

93

PI CoolerCCX Cooler

Ratio

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1.8

2

Series1

CCX exclusive-PI/CCX

PI 4CCX 2Ratio 2

PI

CCX

Ratio

0 0.5 1 1.5 2 2.5 3 3.5 4

Series1

Pepsi Selling Vs Coke Selling-2

If Come Will You Buy- Yes

Aajij Nagar

Visi Index-PI Cooler Vs Coke Cooler

94

PI Cooler 0CCX Cooler 3Ratio 0

PI Cooler

CCX Cooler

Ratio

0 0.5 1 1.5 2 2.5 3

Series1

CCX Exclusive-PI/CCX

PI 4CCX 3

Ratio1.333333

PI CCX Ratio0

0.5

1

1.5

2

2.5

3

3.5

4

Series1

95

Pepsi Selling Vs Coke Selling-2

If come will you Buy-yes

necessary that if the shopkeepers are taking the Pepsi in off season.so It is very much required that you should fulfill the demand in on season .And they should see also in the peak season

96

2-AalamBag

Kanpur Road

P.K.Road

Srangar Nagar

Sujanpur

Bas Stand

Purana Sarkari Kheda

Om Nagar

GitaPalli

Rajaji Puram

Krishna Puri

Saket Puri

Hastina Pur

Kanpur Road

Visi Index-PI Cooler/CCX Cooler

PI Cooler 22CCX Cooler 27

Ratio0.814815

97

PI Cooler CCX Cooler Ratio0

5

10

15

20

25

30

Series1

CCX EXCLUSIVE-PI/CCX

PI 41CCX 41Ratio 1

PI

CCX

Ratio

0 5 10 15 20 25 30 35 40 45

Series1

Pepsi Selling Vs Coke Selling-39

If Come Will you Buy- Yes

P.K.Road

Visi Index-PI Cooler/CCX Cooler

98

PI Cooler 4CCX Cooler 6

Ratio0.666667

PI CoolerCCX Cooler

Ratio

0

1

2

3

4

5

6

Series1

CCX EXCLUSIVE-PI/CCX

PI 9CCX 9Ratio 1

PI CCX Ratio0

1

2

3

4

5

6

7

8

9

Series1

99

Pepsi Selling Vs Coke Selling-9

If come will You Buy- Yes

Srangar Nagar

Visi Index-PI Cooler/CCX Cooler

PI Cooler 0CCX Cooler 6Ratio 0

PI CoolerCCX Cooler

Ratio

0

1

2

3

4

5

6

Series1

CCX EXLUSIVE-PI CCX

PI 6CCX 6Ratio 1

100

PI CCX

Ratio

0

1

2

3

4

5

6

Series1

Pepsi Selling Vs Coke Selling-6

If come will you Buy-yes

SujanPur

Visi Index-PI Cooler /CCX Cooler

PI Cooler 2CCX Cooler 2Ratio 1

PI Cooler CCX Cooler Ratio0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1.8

2

Series1

101

CCX Exlusive –PI/CCX

PI 4CCX 3

Ratio1.333333

PI

CCX

Ratio

0 0.5 1 1.5 2 2.5 3 3.5 4

Series1

Pepsi Selling Vs Coke Selling-3

If Come will you Buy –Yes

Bas Stand

Visi Index - PI Cooler/CCX Cooler

PI Cooler 1CCX Cooler 2Ratio 0.5

102

PI Cooler CCX Cooler Ratio0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1.8

2

Series1

CCX Exlusive-PI/CCX

PI 4CCX 3

Ratio1.333333

PI CCX

Ratio

0

0.5

1

1.5

2

2.5

3

3.5

4

Series1

Pepsi Selling Vs Coke Selling-3

If come will you Buy-Yes

103

Purana Sarkari Kheda

Visi Index-PI Cooler/CCX Cooler

PI Cooler 4CCX Cooler 1Ratio 4

PI Cooler CCX Cooler Ratio0

0.5

1

1.5

2

2.5

3

3.5

4

Series1

CCX Exclusive-PI/CCX

PI 6CCX 4Ratio 1.5

104

PI CCX

Ratio

0

1

2

3

4

5

6

Series1

Pepsi Selling Vs Coke Selling-7

If Come will you Buy-Yes

Om Nagar

Visi Index-PI Cooler/CCX Cooler

PI Cooler 4CCX Cooler 3

Ratio1.333333

105

PI CoolerCCX Cooler

Ratio

0

0.5

1

1.5

2

2.5

3

3.5

4

Series1

CCX Exclusive-PI/CCX

PI 8CCX 5Ratio 1.6

PI CCX Ratio0

1

2

3

4

5

6

7

8

Series1

Pepsi Selling Vs Coke Selling-5

If Come Will you Buy-Yes

Gita Palli

Visi Index-PI Cooler/CCX Cooler

106

PI Cooler CCX Cooler Ratio0

1

2

3

4

5

6

7

8

9

Series1

CCX Exclusive-PI/CCX

PI 8CCX 8Ratio 1

PI CCX Ratio0

1

2

3

4

5

6

7

8

Series1

Pepsi Selling Vs Coke Selling-8

If come will you Buy-Yes

Rajaji Puram

107

Visi Index-PI Cooler/CCX Cooler

PI Cooler 3CCX Cooler 6Ratio 0.5

PI Cooler CCX Cooler Ratio0

1

2

3

4

5

6

Series1

CCX Exclusive-PI/CCX

PI 16CCX 16Ratio 1

PI CCX

Ratio

0

2

4

6

8

10

12

14

16

Series1

108

Pepsi Selling Vs Coke Selling-16

If Come will you Buy-Yes

Krishna Puri

Visi Index-PI Cooler/CCX Cooler

PI Cooler 9CCX Cooler 6Ratio 1.5

PI Cooler

CCX Cooler

Ratio

0 0.5 1 1.5 2 2.5 3 3.5 4

Series1

CCX Exclusive-PI/CCX

PI 17CCX 17Ratio 1

109

PI CCX Ratio0

2

4

6

8

10

12

14

16

18

Series1

Pepsi Selling Vs Coke Selling-17

If Come will you Buy- Yes

Saket Puri

Visi Index-PI Cooler/CCX Cooler

PI Cooler 1CCX Cooler 2Ratio 0.5

110

PI Cooler CCX Cooler Ratio0

0.5

1

1.5

2

2.5

Series1

CCX Exclusive-PI/CCX

PI 3CCX 3Ratio 1

PI CCX Ratio0

0.5

1

1.5

2

2.5

3

3.5

4

Series1

Pepsi Selling Vs Coke Selling-3

If Come Will You Buy-Yes

HastinaPur

111

Visi Index-PI Cooler/CCX Cooler

PI Cooler 1CCX Cooler 4Ratio 0.25

PI Cooler CCX Cooler Ratio0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

Series1

CCX Exclusive-PI/CCX

PI 4CCX 3

Ratio1.333333

PI CCX Ratio0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

Series1

112

Pepsi Selling Vs Coke Selling-3

If Come will you buy-Yes

AishBag & Nakkash

AishBag

Hadarganj

Subasti Marg

Rakab Ganj

Nandan Mahal Road

AishBag

Visi Index-PI Cooler/ CCX Cooler

PI Cooler 17CCX Cooler 16

Ratio1.0625

PI Cooler CCX Cooler Ratio0

2

4

6

8

10

12

14

16

18

Series1

113

CCX Exclusive-PI/CCX

PI 22CCX 13

Ratio1.692308

PI CCX Ratio0

5

10

15

20

25

Series1

Pepsi Selling Vs Coke Selling-13

If come will you buy-Yes

HaderGanj

Visi Index –PI Cooler/CCX Cooler

PI Cooler 4CCX Cooler 5Ratio 0.8

114

PI CoolerCCX Cooler

Ratio

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

5

Series1

CCX Exclusive-PI/CCX

PI 5CCX 4Ratio 1.25

PICCX

Ratio

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

5

Series1

Pepsi selling vs Coke Selling-4

If Come will you buy-Yes

Subasti Marg

Visi Index-PI Cooler/CCX Cooler

115

PI Cooler 10CCX Cooler 3

Ratio3.333333

PI CoolerCCX Cooler

Ratio

0

1

2

3

4

5

6

7

8

9

10

Series1

CCX Exclusive-PI/CCX

PI 12CCX 6Ratio 2

116

PICCX

Ratio

0

2

4

6

8

10

12

Series1

Pepsi Selling vs Coke Selling-5

If come will you Buy-Yes

Rakab Ganj

Visi Index-PI Cooler /CCX Cooler

PI Cooler 5CCX Cooler 3

Ratio1.666667

117

PI CoolerCCX Cooler

Ratio

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

5

Series1

CCX Exclusive-PI/CCX

PI 7CCX 4Ratio 1.75

PICCX

Ratio

0

1

2

3

4

5

6

7

Series1

Pepsi Selling Vs Coke Selling-6

Pepsi Selling Vs Coke Selling-Yes

118

NandanMahal Road

Visi Index-PI Cooler/Coke Cooler

PI Cooler 10CCX Cooler 6

Ratio1.666667

PI CoolerCCX Cooler

Ratio

0

1

2

3

4

5

6

7

8

9

10

Series1

CCX Exclusive-PI/CCX

PI 12CCX 8Ratio 1.5

119

PICCX

Ratio

0

2

4

6

8

10

12

Series1

Pepsi Selling Vs Coke Selling-8

If come will you Buy- yes

Observation-

Pakke Pul Se IIM-

Sitapur Road- Yes ,Pepsi is very much good .Because the CCX Exclusive is greater than 1.Everywhere Pepsi selling is good in comparison to coke . In supply matter coke has minimum shop in comparison to Pepsi, but distribution is awesome.

Bitauli- Coke is Good .Because the CCX Exclusive is less than 1.

Semra Gauri - Pepsi is good Because it ratio is greater than 1

Mohbullapur- Pepsi is better than Coke Because the ratio of Pepsi and Coke is Greater than 1.Pepsi is good.

Naubasta- Pepsi is good .Because the ratio of Pepsi and Coke is greater than 1.But one thing I want to say that Pepsi is not good .Because the fulfillment of Pepsi is not good in the market.

120

Gallamandi- Pepsi is good. Because the ratio of Pepsi & Cooler 1.But that is not enough if in the area of Pepsi or Coke supply of coke is good .then we will prefer the coke. Then here supply matter .One thing, I want to say that. In the area of Gallmandi Coke supply is good.

Aaybaranpur- Yes, Pepsi is good .Because Pepsi Ratio is greater than 1

Triveni Nagar- Pepsi is good Because the ratio of pi/ccx is greater than 1.

Khadra- Yes Pepsi is good .because the ratio of ccx exclusive is greater than 1.

Indalganj- Pepsi is good .because the ratio of Pepsi and coke is greater than 1.In my opinion if anything which will come on time that is good.

Madiyav- Coke is good because the ratio of Pepsi and coke is less than 1.

Shrinagar- Pepsi is good Because the ratio of CCX Exclusive is greater than 1.

Keshav Nagar- Pepsi is good Because the Ratio of Pepsi and Coke is greater than 1

Naya Purva- Pepsi is good Because it’s ratio is greater than 1.

Puraniya Chauraha- Yes, Pepsi is good .Because Pepsi Ratio is greater than 1

Gayatri Nagar- Coke is good Because the ratio of CCX Exclusive is greater than 1.

Aajij Nagar- Pepsi is good. Because the ratio of Pepsi & Cooler 1.But that is not enough if in the area of Pepsi or Coke supply of coke is good .then we will prefer the coke. Then here supply matter .One thing, I want to say that. In the area of Gallmandi Coke supply is good.

Aalambag-

Kanpur Road- Here Pepsi is good .Because the ratio of Pepsi and Coke is greater than or equal to 1.

P.K.Road- Here Pepsi is good .Because the ratio of Pepsi and Coke is greater than or equal to 1.

Srangar Nagar- Here Pepsi is good .Because the ratio of Pepsi and Coke is greater than or equal to 1.

121

Sujanpur- Here Pepsi is good .Because the ratio of Pepsi and Coke is greater than or equal to 1.

Bas Stand- Here Pepsi is good .Because the ratio of Pepsi and Coke is greater than or equal to 1.

Purana Sarkari Kheda- Here Pepsi is good .Because the ratio of Pepsi and Coke is greater than or equal to 1.

Om Nagar- Here Pepsi is good .Because the ratio of Pepsi and Coke is greater than or equal to 1.

GitaPalli- Here Pepsi is good .Because the ratio of Pepsi and Coke is greater than or equal to 1.

Rajaji Puram- Here Pepsi is good .Because the ratio of Pepsi and Coke is greater than or equal to 1.

Krishna Puri- Here Pepsi is good .Because the ratio of Pepsi and Coke is greater than or equal to 1.

Saket Puri- Here Pepsi is good .Because the ratio of Pepsi and Coke is greater than or equal to 1.

Hastina Pur- Here Pepsi is good .Because the ratio of Pepsi and Coke is greater than or equal to 1.

AiahBag Nakkash

AishBag- Pepsi is good .Because the ratio of CCX Exclusive greater than 1

Hadarganj- Pepsi is good .Because the ratio of CCX Exclusive greater than 1

Subasti Marg- Pepsi is good .Because the ratio of CCX Exclusive greater than 1

Rakab Ganj- Pepsi is good .Because the ratio of CCX Exclusive greater than 1

122

Nandan Mahal Road- Pepsi is good .Because the ratio of CCX Exclusive greater than 1

123

Findings

Sitapur Road- There are a lot of things to be taken care off. According to my perception , when the PSR Go to the shop .They don’t give the receipt to the shopkeeper. That’s why they cannot understand about the scheme what is going on. So it will be a great loss for the company and also the shopkeeper.

A lot of problem of Freeze .Because when the distributer and PSR or any person who is responsible for giving the services of freeze. They don’t take it seriously. If the proper service is not going on .then it should solve within two or three days. If the shop keeper is ready to give the money of freeze why the company will not give the freeze to the shopkeeper. Sometime they take the freeze for service but they don’t send after that. So All the things should be solved.

Bitauli- PSR is not sending the Pepsi on Time. The vehicle of Pepsi Will not go in many areas. They do not give the proper response .They do not give the Pepsi on proper scheme .They do flattery there.The main problem is freeze and delivery of material.

Semra Gauri- Pepsi Vehicle will not come on time .They never give the receipt .Some shopkeeper said that we do not want Pepsi .Reason is that –They do not give the response and do not responsible for freeze. Some said that if it will come on time then I will buy.

Mohbullapur- Pepsi will not come on time .They do not give the receipt .If the vehicle will come on time then I will take ,otherwise not .PSR of Pepsi is not giving the response on time .so it is very necessary that they will give the response properly.

Naubasta- Freeze problem is there. They do not give the receipt .Some people said –no vehicles come here.

Gallamandi- They do not come on time. They do not give receipt. Even they do not give the response . Delivery is not good.

Aaybaranpur- Some time PSR take the money on time but they do not give the result on time. Some shopkeepers want the freeze first then Pepsi. But PSR do not consider that So this become a big problem.

124

Triveni Nagar- Shopkeepers do not have the freeze. They many time tell about freeze. But PSR do not consider. Some places PSR do the misbehave to the shopkeeper. They do not give the receipt.

Khadra- In the market only I observed that Coca-Cola is better than the brand of PepsiCo. Why, because PepsiCo person are not serious. The delivery of the material of Coca-Cola is better than the PepsiCo. Even I agree that the PepsiCo has covered a big area than coke but the truth is that services are not better than the coke.

Indalganj- Some people ready to accept the Pepsi, but PSR do not reach there. One thing I observed that if any one who open his shop .that time he /she always use Coca-Cola why. Because the conditions are in the favour of shopkeeper and in the PepsiCo conditions are not in the favour of Shopkeepers. So make it easy.

Madiyav- Services is the big issue .Freeze repairing problem is there .proper distribution is not there. In the summer I know that big problems are there. But in the Aalambag there is no problem of distribution in the summer.

Shrinagar- Market has big demand . Services is the big issue .Freeze repairing problem is there .proper distribution is not there. In the summer I know that big problems are there. But in the Aalambag there is no problem of distribution in the summer.

Keshav Nagar- Pepsi will not come on time’s do not give the reply. Shopkeeper(Baba General Store) said we take the 220 Pettis of coke but the PSR of Pepsi do not consider us.

Naya Purva- In the market only I observed that Coca-Cola is better than the brand of PepsiCo. Why, because PepsiCo person are not serious. The delivery of the material of Coca-Cola is better than the PepsiCo. Even I agree that the PepsiCo has covered a big area than coke but the truth is that services are not better than the coke.

Puraniya Chauraha- Some time PSR take the money on time but they do not give the result on time. Some shopkeepers want the freeze first then Pepsi. But PSR do not consider that So this become a big problem.

125

Gayatri Nagar- Market has big demand . Services is the big issue .Freeze repairing problem is there .proper distribution is not there. In the summer I know that big problems are there. But in the Aalambag there is no problem of distribution in the summer.

Aajij Nagar- They do not come on time. They do not give receipt. Even they do not give the response . Delivery is not good.

Aalambag

Kanpur Road- Here everything is good . Even the work of Pepsi is going very well. Harshendra sir is doing a very good job.So no Problem is there . Even they talk to the person who had done the complain . But they were doing just fun to the market researcher .complains are not real.So All things are good.

P.K.Road- Here everything is good . Even the work of Pepsi is going very well. Harshendra sir is doing a very good job.So no Problem is there . Even they talk to the person who had done the complain . But they were doing just fun to the market researcher .complains are not real.So All things are good.

Srangar Nagar- Here everything is good . Even the work of Pepsi is going very well. Harshendra sir is doing a very good job.So no Problem is there . Even they talk to the person who had done the complain . But they were doing just fun to the market researcher .complains are not real.So All things are good.

Sujanpur- Here everything is good . Even the work of Pepsi is going very well. Harshendra sir is doing a very good job.So no Problem is there . Even they talk to the person who had done the complain . But they were doing just fun to the market researcher .complains are not real.So All things are good.

Bas Stand- Here everything is good . Even the work of Pepsi is going very well. Harshendra sir is doing a very good job.So no Problem is there . Even they talk to the person who had done the complain . But they were doing just fun to the market researcher .complains are not real.So All things are good.

Purana Sarkari Kheda- Here everything is good . Even the work of Pepsi is going very well. Harshendra sir is doing a very good job.So no Problem is there . Even

126

they talk to the person who had done the complain . But they were doing just fun to the market researcher .complains are not real.So All things are good.

Om Nagar- Here everything is good . Even the work of Pepsi is going very well. Harshendra sir is doing a very good job.So no Problem is there . Even they talk to the person who had done the complain . But they were doing just fun to the market researcher .complains are not real.So All things are good.

GitaPalli- Here everything is good . Even the work of Pepsi is going very well. Harshendra sir is doing a very good job.So no Problem is there . Even they talk to the person who had done the complain . But they were doing just fun to the market researcher .complains are not real.So All things are good.

Rajaji Puram- Here everything is good . Even the work of Pepsi is going very well. Harshendra sir is doing a very good job.So no Problem is there . Even they talk to the person who had done the complain . But they were doing just fun to the market researcher .complains are not real.So All things are good.

Krishna Puri- Here everything is good . Even the work of Pepsi is going very well. Harshendra sir is doing a very good job.So no Problem is there . Even they talk to the person who had done the complain . But they were doing just fun to the market researcher .complains are not real.So All things are good.

Saket Puri- Here everything is good . Even the work of Pepsi is going very well. Harshendra sir is doing a very good job.So no Problem is there . Even they talk to the person who had done the complain . But they were doing just fun to the market researcher .complains are not real.So All things are good.

Hastina Pur- Here everything is good . Even the work of Pepsi is going very well. Harshendra sir is doing a very good job.So no Problem is there . Even they talk to the person who had done the complain . But they were doing just fun to the market researcher .complains are not real.So All things are good.

Aishbag Nakkash

AishBag- Here every thing is good . Mukesh sir is doing good job .

Hadarganj- Here every thing is good . Mukesh sir is doing good job .

127

Subasti Marg- Here every thing is good . Mukesh sir is doing good job .

Rakab Ganj- Here every thing is good . Mukesh sir is doing good job .

Nandan Mahal Road- Here every thing is good . Mukesh sir is doing good job .

128

Recommandations

Pakke Pul Se IIM

Sitapur Road- My Suggestion is that –If the company is really want the shopkeepers loyalty. Company should understand that if they are providing the Pepsi in the off season so they are responsible for the on season and peak season also . but Distributer cannot see and understand the feeling of shopkeeper. Shopkeeper are small fishes. If we not include them in the on season they will move from you easily and don’t see your company till his whole life .they are taking the risk .but you are finishing him.

Bitauli- My personal suggestion is that the Pepsi delivery should be on time .They should care full about the shopkeepers perspective.

Semra Gauri - My Personal Suggestion is that if you not able to fulfill the demand of market .Then do the work on daily basis. Set the target on On Season. Shopkeepers are too irritate from Pepsi product.

Mohbullapur- If the fulfillment of Pepsi will be on time. Then everybody will take the Pepsi. I had already told that there are two season –One is on season and second is off season. This is very much necessary that if the shopkeepers are taking the Pepsi in off season.so It is very much required that you should fulfill the demand in on season .And they should see also in the peak season.

Naubasta- Pepsi should come on time. They should give response properly. They should tell about scheme.

Gallamandi- My Personal suggestion is that Pepsi should come on time for shopkeeper. Customer want a proper response .Do not annoy to anybody. Supply should be good. Not late 10 to 15 days.

Aaybaranpur- My suggestion is that Pepsi should send on time .Because in the summer season Pepsi is a big Problem for shopkeepers.

129

Triveni Nagar- My suggestion is that Pepsi should go on time in summer. Otherwise, shopkeepers will not take the brand of PepsiCo. Because if I truly say that they most of the time prefer the Coca-Cola brand.

Khadra- My suggestion is that Pepsi should go on time and do not cover the rest market. If you are unable to fulfill the demand of market. First fulfill the demand, and then do any other thing.

Indalganj- My opinion is that if the service will better than the material will sell in the market. Because many people do not earn by Pepsi .because they spend a lot in comparison to earning. But because of market demand they sell .Some distributers sell the Pepsi in a high price in the market. That’ why this condition occurs in the market.

Madiyav- Some places the demand of Pepsi and coke is in a huge scale .But the consideration of demand and supply is zero.so service should be good. Because the services are the big part of Business.

Shrinagar- My personal is that they should be care off on and off season. in summer season specially they should be careful and fulfill the demand of market .

Keshav Nagar-My opinion is that if the service will better than the material will sell in the market. Because many people do not earn by Pepsi .because they spend a lot in comparison to earning. But because of market demand they sell .Some distributers sell the Pepsi in a high price in the market. That’ why this condition occurs in the market.

Naya Purva-My opinion is that if the service will better than the material will sell in the market. Because many people do not earn by Pepsi .because they spend a lot in comparison to earning. But because of market demand they sell .Some distributers sell the Pepsi in a high price in the market. That’ why this condition occurs in the market

Puraniya Chauraha- My suggestion is that Pepsi should send on time .Because in the summer season Pepsi is a big Problem for shopkeepers.

Gayatri Nagar- My personal is that they should be care off on and off season. in summer season specially they should be careful and fulfill the demand of market.

130

Aajij Nagar- My Personal suggestion is that Pepsi should come on time for shopkeeper. Customer want a proper response .Do not annoy to anybody. Supply should be good. Not late 10 to 15 days.

Aalambag

Kanpur Road- My personal is that as they were doing the work .they should do the work properlyP.K.Road- My personal is that as they were doing the work .they should do the work properly

Srangar Nagar- My personal is that as they were doing the work .they should do the work properly

Sujanpur- My personal is that as they were doing the work .they should do the work properly

Bas Stand- My personal is that as they were doing the work .they should do the work properly

Purana Sarkari Kheda- My personal is that as they were doing the work .they should do the work properly

Om Nagar- My personal is that as they were doing the work .they should do the work properly

GitaPalli- My personal is that as they were doing the work .they should do the work properly

Rajaji Puram- My personal is that as they were doing the work .they should do the work properly

Krishna Puri- My personal is that as they were doing the work .they should do the work properly

Saket Puri- My personal is that as they were doing the work .they should do the work properly

Hastina Pur- My personal is that as they were doing the work .they should do the work properly

131

Aishbag Nakkash-

AishBag- My personal suggestion is that services should on time weather on season or off season.Hadarganj- My personal suggestion is that services should on time weather on season or off season.

Subasti Marg- My personal suggestion is that services should on time weather on season or off season.

Rakab Ganj- My personal suggestion is that services should on time weather on season or off season.

Nandan Mahal Road- My personal suggestion is that services should on time weather on season or off season.

132

Conclusion

After conducting the Research, Researcher found that there are two categories of retailers. The first one is of those retailers, which just want to increase their assets, for them the sale doesn’t matter according to them they can only increases the sale if the company will invest in them or in their shops. These types of retailers will only work for the company ,which invest in them hugely .And if at any moment they found company has lost or lowered their interest in them they will again shift to other major player. Other kinds of retailers are those who are more bothered about working hard and build their reputation in the market .These types of Retailers are using the merchandising assets to their optimum level .And sometimes if they are unable to do so it’s because of the irregularity of the salesman (when the salesman on the route gets changed)or because of the shortage of the different products /packing.

There is a requirement of the company profession to visit these retailers continuously .So, that they can understand the market and suggest changes accordingly .Despite of this ,Salesman and other company professions who visit these retailer must not do the false promises. Due to this retailers lose their confidence in the company.

There is also the need of the transparent schemes and marketing mix that the retailers can understand more properly.

In the PepsiCo company everything is good. They are doing work properly. The things are going is a right direction. PSR doing its job very honestly. It has a big area to do anything .So its future is good . its employees are very honest so it will go very far in FMCG industry.

133

Bibliography

http://en.wikipedia.org/wiki/PepsiCo

http://en.wikipedia.org/wiki/The_Coca-Cola_Company

134