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Summer Internship Report

Comparative Analysis And Research – Pepsi cola Vs Coca cola

Submitted to: DIRECTOR ACADEMICS Dr. NISHITH RAI

Submitted by: JAGRITI SHARMA M.B.E. 4TH SEM. BATCH (10-12)

ACKNOWLEDGEMENT Well to say this is my project would be totally untrue. At best this was my dream. There are people in this world, some of them so wonderful that made this dream become a project. I would like to thank all of them, and in particular: Especially, MR.Arvind Rathore Franchise manager - who trained us about products and services of PEPSICO and taught us how to deal with customer, All the TDM, CE and Sachin,Umer, Deepti ( Coordinator) – whose off time discussions with me always encouraged and motivated me for the project, he was the one who helped me in understanding the market in a better and easier way. MRS. Suman Suhag (internal faculty guide) and MRS. Sweta seth (Program director) teacher cum mentor, they helped me right from the beginning to the end of my project in every aspect, Mr Shelesh and MRS. Taruna, Placement cell – After all without their support I would have never got a chance to do my project in my dream topic.

My friends and colleagues Wasim, Prashant, Sandeep, Laleet, Pawan,Vinod,Vikas and others that surround me, love me and make life fun to reduce stress and tiredness. And lastly, it is only when one writes and realizes the true power of MS word 2007, from grammar checks to replace-alls. It is

simple. And the power of Windows XP the OS where MS Office is …. Thank you Mr. Bill Gates and Microsoft Corp!

DECLARATION I Jagriti Sharma declare that this project report entitled comparative analysis of market share Pepsi cola verses coca cola is an original piece of work done and submitted by me towards partial fulfillment of my post graduate programme in MBE (Master Of Business Economics). This Report has not been copied from anywhere, up to the best of my belief and knowledge. It has not been submitted anywhere else for Award of any other Degree/Diploma.

DATE:

SIGNATURE:

PREFACE Marketing plays vital role in today’s business scenario in consumer product Company, when there is such a high competition in the market. The emphasis in the project is providing the study and an insight into Indian FMCG Business Scenario. The Summer Project is designed to provide participation of MBE program as on the job experience. This has given a chance to try and apply the academic knowledge and gain insight into corporate culture. This helps in developing decision-making abilities and emphasizes on active participation by the student. We gained valuable experience & knowledge during the survey. The Project consists of our findings after data analysis & then

conclusions were drawn and finally recommendations were put forward.

“Marketing is too important to be left to the marketing department.” David Packard of Hewlett Packed.

The Indian market is getting to be consumer oriented. This is the reason behind the exceptional boom in advertising. Below the line marketing activities, fast distribution system and more sophisticated consumer research.

The problem that all marketers are facing is getting the maximum done in the minimum possible time. And with brand loyalty becoming a thing of the past, given the choice available to the consumer pull. The consumer could be a purchaser of end products, or a financial investor, or even an industrial purchaser. Everywhere, there is a new thrust on marketing and advertising.

The hyper activity in the market place is seeing a boom in support services, with a number of independent agencies mushrooming to provide them.

The entries of multinational products in to the country are seeing more emphasis on world- class quality.

The scene has moved beyond the threshold of global presence, inward and out ward. However, there are certain issues still dogging an unchecked move forward something bound to happen when the economy is just opening up. These need to be addressed. Nonetheless, India has taken the irreversible step forward in becoming a part of the global family. And in the process of growth, there are already and will be in future, quantum jumps in progress.

TABLE OF THE CONTENT Certificate Acknowledgement Declaration Preface Table of the content Executive Summary Soft Drink Industry : An Overview 1. Introduction 1.1.History of PEPSICO and COCA-COLA 1.2.Product of PEPSICO and COCA-COLA 1.3. PEPSICO and COCA-COLA IN INDIA 2. 2. Objective of study

3. 3.Compare sales and distribution 3.1.Channel type 3.2.Distribution service

3.3.Distribution of visi 3.4.Product 3.5.Market share 3.6.Feedback and Remark

4. Methodology and Analysis of Data 4.1.Research Methodology 4.2.Data collection Primary and Secondary 4.3.Using of data

4.4.Statistical tools 4.5.SWOT analysis 4.6.Area wise analysis 4.7.Company analysis

5. Recommendation and suggestions

6. Limitations Bibliography Annexure QUISTIONAIRE

EXECUTIVE SUMMARY PepsiCo is the world's premier consumer products company focused on convenience food and beverages. We seek to produce healthy financial reward to investors as we provide opportunities for growth and enrichment to our employee.

PepsiCo India and its partners have invested more than U.S. $1 billion since the company was established in the country. PepsiCo provides direct and indirect employment to 150,000 people including suppliers and distributors The group has built an expansive beverage and foods business. To support its operations, PepsiCo has 43 bottling plants in India, of which 15 are company owned and 28 are franchisee owned. PepsiCo’s business is based on its sustainability vision of making tomorrow better than today. PepsiCo’s commitment to living by this vision every day is visible in its contribution to the country, consumers and farmers. To deliver on this commitment, PepsiCo India will build on the incredibly strong foundation of achievement and scale up its initiatives while focusing on the following 4 critical areas that have a business link and where we believe that we can have the most impact.

Coca-Cola is carbonated soft drinks sold in stores, restaurants and vending machines internationally. The Coca-Cola Company claims that the beverage is sold in more than 200 countries. 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

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

In any marketing situation, the behavioral / environmental variables relating to consumers, competition and environment are constantly influenced. The competitors in a given industry may be making many tactical exercises in market all the time. The may introduce or initiate an aggressive promotion campaign or announce a price reduction. The marketing man of the firm has to meet all these maneuver and care of competitive position of his firm and his brand in the market. The only route open to him for achieving this is the manipulation of his marketing tactics. In today’s highly competitive market place, three players have dominated the industry; The New York based Pepsi Company Inc. The Atlanta based coca- cola and U.K. based Cadbury Schweppes.

SOFT DRINK INDUSTRY: AN OVERVIEW It all began in 1886, when a tree legged brass kettle in Hohn Styth pemberton’s backyard in Atlanta was brewing the first P of marketing leged. Unaware the pharmacist has given birth to a caromel colored syrup, which is now the chief ingredient of the world’s favorite drink. The syrup combined with carbonated the soft drink market. It is estimated that this drink is served more than one thousand million times in a day. Pemberton & Robinson laid the first foundation of this beverage when an average nine drinks per day to begin with, upping volumes as sales grew. In 1894, this beverage got into bottle, courtesy a candy merchant from Mississippi. By the 1950’s Colas was a daily consumption item, stored in house hold freezes. Soon were born other non- cola variants of this product like orange & Lemon. Now, the soft drink industry has been dominated by three major player – (1) The New York based Pepsi co. Inc.(2) The Atlanta based coca cola co. (3) The united Kingdom based Cadbury Schweppes. Though out the glove these major players have been battling it. Out for a bigger chunk of the ever-growing cold drink market. Now this battle has begun in India too. India is now the part of cold drink war.

Gone are days of Ramesh Chauhan, India’s one time cola king and his bouts of pistol shooting. Expect now to hear the boon of cannons when the Coca Cola & Pepsi co. battle it out for, as the Jordon goes a bigger share of throat. By buying over local competition, the two American Cola giants have cleared up the arena and are packing all their power behind building the Indian franchisee of their globe girdling brands. The huge amount invested in fracture has never been seen before. Both players seen an enormous potential in his country where swigging a carbonated beverage is still considered a treat, virtually a luxury.

In colas, Pepsi is already market leader and in certain cities like Delhi, Pepsi outlets are on one side & all the other colas put together on the other. While coke executive scruff at Pepsi’s claims as well as targets, industry observers are of the view that Pepsi has definitely stolen a march over its competitor coke. Apart from numbers, Pepsi has made qualitative gains. The foremost is its image. This image turnaround is no small achievements, considering that since it was established in 1989, taking the hardship route prior to liberalization and weighed down by export commitments. Now, at present as there are three major players coke, Pepsi and Cadbury and there is stiff competition between first two, both Pepsi and coke have started, sponsoring local events and staging frequent consumer promotion campaigns. As the mega event of this century has started, and the marketers are using this event – world cup football, cricket events and many more other events.

The success of soft drink industry depends upon 4 major factors viz. Availability Visibility Cooling Range

AVAILABILITY Availability means the presence of a particular brand at any outlet. If a product is now available at any outlet and the competitor brand is available, the consumer will go for that.

VISIBILITY

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

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

RANGE This is the last but not the least factor, which affects the sale of the products of a particular company. Range availability means the availability of all SKU (Stock Keeping Units).

INTRODUCTION

HISTORY OF ‘PEPSICO’

Pepsi is a soft drinks produced and manufactured by PepsiCo. It is sold in many places such as retail stores, restaurants, schools, cinemas and from vending machine. The drink was first made in the 1880s by pharmacist Calab Bradham in New Bern, North Carolina. The brand was trademarked on June 16, 1903. There have been many Pepsi variants produced over the years since 1898. It was first introduced in North Carolina in 1898 by Caleb Bradham who made it at his pharmacy which sold the drink which was known back then as "Brad's Drink", and was later named Pepsi Cola possibly due the digestive enzyme pepsin and kola nuts used in the recipe. Bradham sought to create a fountain drink that was delicious and would aid in digestion and boost energy.

In 1903, Bradham moved the bottling of Pepsi-Cola from his drugstore into a rented warehouse. That year, Bradham sold 7,968 gallons of syrup. The next year, Pepsi was sold in six-ounce bottles, and sales increased to 19,848 gallons. In 1926, Pepsi received its first logo redesign since the original design of 1905. In 1931, the Pepsi-Cola Company went bankrupt during the Great Depression - in large part due to financial losses incurred by speculating on wildly fluctuating sugar prices as a result of World War-I. Assets were sold and Roy C. Megargel bought the Pepsi trademark.[3] Eight years later, the company went bankrupt again. Pepsi's assets were then purchased by Charles Guth, the President of Loft Inc. Loft was a candy manufacturer with retail stores that contained soda fountains. He sought to replace Coca-Cola at his stores' fountains after Coke refused to give him a discount on syrup. Guth then had Loft's chemists reformulate the Pepsi-Cola syrup formula. During the Great Depression, Pepsi gained popularity following the introduction in 1936 of a 12-ounce bottle. Initially priced at 10 cents, sales were slow, but when the price was slashed to five cents, sales increased substantially. With a radio advertising campaign featuring the jingle "Pepsi cola hits the spot / Twelve full ounces, that's a lot / Twice as much for a nickel, too / Pepsi-Cola is the drink for you," arranged in such a way that the jingle never ends.

Pepsi's success under Guth came while the Loft Candy business was faltering. Since he had initially used Loft's finances and facilities to establish the new Pepsi success, the near-bankrupt Loft Company sued Guth for possession of the Pepsi-Cola company.

PEPSICO IN INDIA PepsiCo entered India in 1989 and has grown to become one of the country’s leading food and beverage companies. One of the largest multinational investors in the country, PepsiCo has established a business which aims to serve the long term dynamic needs of consumers in India. PepsiCo India and its partners have invested more than U.S.$1 billion since the company was established in the country. PepsiCo provides direct and indirect employment to 150,000 people including suppliers and distributors. PepsiCo nourishes consumers with a range of products from treats to healthy eats that deliver joy as well as nutrition and always, good taste. PepsiCo India’s expansive portfolio includes iconic refreshment beverages Pepsi, 7 UP, Mirinda and Mountain Dew, in addition to low calorie options such as Diet Pepsi, hydrating and nutritional beverages such as Aquafina drinking water, isotonic sports drinks - Gatorade, Tropicana100% fruit juices, and juice based drinks – Tropicana Nectars, Tropicana Twister and Slice. PepsiCo’s foods company, Frito-Lay, is the leader in the branded salty snack market and all Frito Lay products are free of trans-fat and MSG. It manufactures Lay’s Potato Chips; Cheetos extruded snacks, Uncle Chipps and traditional snacks under the Kurkure and Lehar brands. The company’s high fibre breakfast cereal, Quaker Oats, and low fat and roasted snack options enhance the healthful choices available to consumers. Frito Lay’s core products, Lay’s, Kurkure, Uncle Chipps and Cheetos are cooked in Rice Bran Oil to significantly reduce saturated fats and all of its products contain voluntary nutritional labeling on their packets. The group has built an expansive beverage and foods business. To support its operations, PepsiCo has 43 bottling plants in India, of which 15 are

company owned and 28 are franchisee owned. In addition to this, PepsiCo’s Frito Lay foods division has 3 state-of-the-art plants. PepsiCo’s business is based on its sustainability vision of making tomorrow better than today. PepsiCo’s commitment to living by this vision every day is visible in its contribution to the country, consumers and farmers.

Findings on the basis of history:

 The ad campaign has been indianised with lot money being spent on advertising. Brand has been kept alive by effective promotional schemes.  Coca Cola in the initial years of it’s incorporation had spent a lot of money on advertising. Coke is the longest surviving sponsored of The Olympics. To reach at this position advertising and effective event marketing have played a major role for Coca Cola.  "To be the world's premier consumer Products Company focused on convenience foods and beverages. We seek to produce healthy financial rewards to investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in everything we do, we strive for honesty, fairness and integrity."

 PepsiCo is a world leader in convenience foods and beverages, with 2007 revenues of more than $39 billion and more than 185,000 employees across the world. Its world renowned brands are available in nearly 200 countries and territories.  PepsiCo entered India in 1989 and has grown to become the country’s largest selling food and beverage companies. One of the largest multinational investors in the country, PepsiCo has established a

business which aims to serve the long term dynamic needs of consumers in India.

 PepsiCo India and its partners have invested more than U.S.$700 million since the company was established in the country in 1989. In India, PepsiCo provides direct employment to 4,000 people and indirect employment to 60,000 people including suppliers and distributors.  PepsiCo India’s expansive portfolio includes iconic refreshment beverages Pepsi, 7 UP, Mirinda and Mountain Dew, in addition to low calorie options– Diet Pepsi and 7Up Light; hydrating and nutritional beverages such as Aquafina drinking water, isotonic sports drinks Gatorade, and 100% natural fruit juices and juice based drinks – Tropicana, Tropicana Twister and Slice. Our local brands – Lehar Everess Soda, Dukes Lemonade and Mangola complete our diverse spectrum of brands.

Pepsi's Slice launches 'Aamsutra' PepsiCo’s popular mango juice drinks brand - Slice - kicked off the 2009 season with its new 'Aamsutra' concept. According to Homi Battiwalla, business head – juice and juice drinks, PepsiCo India, Slice had seen powerful consumer momentum post relaunch of 2008. "South Indiais the leading market for mango drinks in the country. Andhra Pradesh is the biggest mango market and also the fastest growing market for Slice and other mango drinks in the country.

Tamil Nadu is among the top three states and Slice is the marketleader in Tamil Nadu," he added.

Pepsi has now opted for a new brand ambassador, Katrina Kaif. "The creative thought behind the new communi...