Pepsi vs Coke
Transcript of Pepsi vs Coke
PROJECT REPORT
ON
“BRAND POSITIONING STRATEGIES”
OF
“PEPSI”
IN COMPARISION WITH
“COCACOLA”
Submitted To M.D. University Rohtak, For the Partial Fulfillment Of The Award
of Degree Of
MASTER OF BUSINESS ADMINISTRATION
BATCH: 2008-2010
Under the guidance of: Submitted by:
MR. Narender Tanwar DEEPAK SINGH
Lecturer. In MBA deptt. MBA 4th Sem.Roll no.08/mba07
Bhawani Shankar Anangpuria
INSTITUTE OF TECHNOLOGY & MANAGEMENT (Approved by AICTE, Govt. Of INDIA & Affiliated to M.D.U., Rohtak)
Alampur, Faridabad -121004
1
ACKNOWLEDGEMENT
I was delighted to avail this opportunity to thank all those who have contributed in our efforts in
the development of the project and making it a success, which would have been a difficult, task
otherwise.
I would like to express my gratitude to my guide Mr Narender tanwer, who guided me through
out the project work and special thanks for the care and concern shown by him.
I am highly thankful to Head of department of M.B.A. Faculty, which provide a chance to work
with these brands.
In last but not a least, I am thankful to shopkeeper,users which provide a time for questionnaires.
Date-
Place- Deepak singh
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PREFACE
The curriculum of MBA is so designed that it besides providing theoretical knowledge gives
practical experience to the participants, with an opportunity to deal with real life situation
through field visitor or as research project dissertation are enriched and well equipped to face the
future challenge and counting excise which are enriched and inseparable and unavoidable in
business.
The objective of research project is to impart the student with the practical experience and an
exposure of the corporate world. The student has to complete research project under the
professor of his institute and do a project which he thinks would add to knowledge and he will
learn about how We work on market research of any particular topics.
I fortunately got an opportunity to do my research project on “COMPARATIVE ANALYSIS OF
BRAND POSITIONING STRATEGIES OF PEPSI AND COCA COLA”.
Working on this project was a rewarding time for me, where I came to know about the various
programmatic aspects of managerial work and management.
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Declaration
I Deepak Singh roll no 08/MBA07. M.B.A.4th Semester of institute of ‘Bhawani Shankar
Anangpuria Institute of Technology & Management’ Faridabad hereby declare that the project
entitled “Comparative Analysis Of Brand Positioning Strategies of Pepsi And Coca Cola” Is
an original work and the same has not been submitted to any other institute for the award of any
other degree. The interim report was presented to the supervisor on Mr. Narender Tanwar asst.
professor’s feasible suggestions have been duly incorporated in consultation with the supervisor.
Deepak Singh
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TABLE OF CONTENT
CHAPTER – 1
Objectives
CHAPTER – 2
Company Profile History of Pepsico
Beverages industry in India Entry of Pepsico in India
History of Coco-Cola
SWOT Analysis
CHAPTER – 3
Introduction of the Topic
CHAPTER – 4
Research Methodology
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CHAPTER – 5
Data Analysis& Findings
Flavours of Pepsico & Coca-Cola
CHAPTER – 6
Findings
CHAPTER – 7
Limitation & Conclusion
CHAPTER – 8
Recommendations & suggestions CHAPTER – 9
Bibliography
CHAPTER - 10 Annexuer:
Questionnaire
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CHAPTER - 1
7
OBJECTIVES OF
THE
STUDY
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OBJECTIVE OF THE STUDY
To know the main branding strategies followed by the company to create a better mbrand
image.
To Study customer’s attitude towards Pepsi & Coca-Cola.
To determine the importance of brand positioning in present marketing scenario.
To determine the factor influencing the choice of customer regarding stated cold drinks..
To know how brand positioning is done by Pepsi and Coca-Cola.
It is widely accepted that theory broadens ones thinking and help in idea generation. But
practical approach tends to test the feasibility of these ideas and how far theortical knowledge
can be applied in a situation successfully.
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CHAPTER - 2
10
COMPANY
PROFILE
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HISTORY OF
PEPSICO
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HISTORY OF PEPSICO
The wall street journal names indra nooyi one of 50 women to watch (in line to lead
Margo posey, president of the DFW MBDC presented bob Gonzalez with president’s award fro-
meritorious service to the council over the years. Pepsico is mentioned among 26 companies that
earned Governance metrics International’s (GMI) highest governance rating. National minority
Supplier Development Council (NMSDC) names pepsico one of the “ Corporations of the year”.
Minority Business News names pepsico Chairman and CEO Steve Reinemund “ Executive of
the year”. PEPSI Musica Website Wins “ Best Interactive Marketing Digital Community”
Award from the Latino Marketing Awards. The Maxican Center of Philanthrophy ( CEMEFI)
honored Sabritas- pepsiCo’s Mexican salty-‘snack business—with the Best Practice in
Corporate Social Responsibility Award for 2004 in the community affairs category.
Latin Trade Reader Survey Names PepsiCo # 7 in the list of latin America’s Most-Respected
companies.
PepsiCo is chosen for the 2005 list of the NAFE Top 30 Companies for Executive women.
Frinto-Lay launches Doritos Edge and Tosit Gatorade introduces Gatorade Endurance Hydrance
Formula -- a specialized Sports drink to meet the ne
Frito-Lay introduces Quaker Chewy Cookies & milk granola bars and Quaker Fruit & Oatmeal
cereal bars.
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Frito- Lay Canada eliminates trans fats from chips and launches a line of All Natural and
Organic products. PEPSI-Cola to launch PEPSI Edge ,the first full-flavored cola with 50% less
sugar , carbohydrates and calories than regular cola. PepsiCo publishes first Corporate
Citizenship report in its 2003 Annual Report. PEPSI-Cola launches sierra Mist nationall
Quaker chewy introduces Quaker Chewy Wholesome Favourites and Quaker Chewy Trail mix.
Gatorade unveils In-car Hydration system for NASCAR Drivers SoBe soponsors U.S. Open snowboarding championships.
PEPSI announces plan to launch Mt. Dev Livewire, an orange drink this summer.
PEPSI- Cola signs an exclusive four –year sponsorship deal with Canadian Hockey
association ,making PEPSI the official soft drink. PEPSI announces four-year sponsorship
agreement with the UK Football association. Frito-lay announces new line of snaks made with
organic ingredients called “ Natural Snacks.” “PEPSI Stuff” Campaign kicks-off in Canada.
Frito-lay finds winner of “ Would you Name Your Baby Horton” search celebrating the “Re-
birth” of its Ruffles brand. The child will receive $50000 college tuition fund from Frito-Lay.
PEPSI CO creats pepsico international , the business that will unite all international snack,
beverage and food units in an effort to drive faster growth and improved profitability around the
world.
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“Mr. Green,” a green – tinted carbonated soft drink with caffeine and ginseng, is launched under
sobe’s new age beverage line in April. The north American coffee partnership (NACP) , a joint
venture between starbucks coffee company and pepsico , inc. introduces starbucks double shot.
Quaker oatmeal this year celebrates the 125th anniversary of the nation’s number-one- choice for
a nutritious , hot breakfast cereal.
Gatorade turns 35. it was created in 1960’s to help performances of Florida Gators football team
and now is the leading sport drink. New line of Gatorade brand drinks, Xtremo, comes in the
three new flavours mango, Tropical and Citric.
Pepsico and Kenneth cooper, M.D. , M.P.H.,of cooper concepts inc. (CCI) , a division of the
renowned cooper Aerobics Centre in Details ,TX enters into an agreement to promote nutrition ,
fitness and wellness.
Dole Beverages enters chilled orange juice business as it launches five new flavours and
packages. PEPSICO reorganizes to unite North American beverage operations, including
PEPSI-cola, Tropicana and Gatorade ,into one new division PEPSICO Beverages and foods
North America. PepsiCo announces $5 billion share repurchase program.Starbuck unveils white
vanilla and coconut crème Frappuccino. Tropicana has new ad campaign for Tropicana Pure
Premium Healthy Kids – TV spots designed to capture the essence of children’s needs. Galaxy
Nutritional Foods launches Ulra Smoothies made with Tropicana juices. PepsiCo publishes
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PEPSI-COLA launches “sierra mist” a caffeine-free,lemon/ lime soda. The north American
coffee partnership launched caramel-flavored bottled frappuccino coffee drink – the sixth flavor
addition to its popular line of ready to drink coffee. Pepsico inc reaches agreement to acquires a
majority stake in south beach beverages company , whose highly innovative so be brand has
made it one of industry’s most successful companies.
Pepsico completes the acquition of a majority stake in south beach beverage co. Pepsico sales are
$20 billion and the company has 125,000employment at year- Tropicana introduces two new
calcium – fortified pure premium juices:
Pure premium grove stand calcium and pure premium ruby red grapefruit calcium.
PEPSI launches “the joy of cola” advertising campaign. 1march , the PEPSI bottling group the
world’s largest pepsi bottler , begins trading on the new york stock exchange. It is listed under
the symbol PBG . the $2.3 billion public offering is among the biggest initial public offering in
stock market history. Steve reinemund named president of pepsico.
Hallie eisenberg “joy of cola” commercial’s named #6 of fifty greatest tv commercials of all
time, “ by TV guide. Lipton introduces iced tea green tea with honey and diet peach.
PepsiCo and Suntory limited signed an agreement to create a joint venture linking bottling
networks in north Carolina and New York. The new company, PEPSI bottling ventures will be
the third largest bottler in the Pepsi system.
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BEVERAGES
INDUSTRY IN
INDIA
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BEVERAGES INDUSTRY IN INDIA:
Indian beverages industrys size is Rs. 8000 crores and it is dominated by two players viz
PEPSI & COKE. This high profile industry has lot of potential for growth as per capita
consumption in India is 9 bottles a year as compared to 20 bottles in Sri Lanka, 14 in Pakistan,
while 12 bottles a person in Nepal.
The RKG Group is India’s leading supplier of retailer brand carbonated & non
carbonated soft drinks, with beverages manufacturing facilities in India & Nepal. Its experience
in the beverage industry dates back to the sixties when it had the first franchise at Mathura.
The family manufactures and markets carbonated & non carbonated soft drinks and mineral
water under Pepsi Brand. The various flavor and sub brands are Pepsi, Mirinda orange, mirinda
Lemon, Mountain Dew, & 7up, Slice orange, Everest soda and Aquafina. It has the lincence to
supply beverages in the territories of western UP, part of MP, half of Haryana, whole of
rajasthan, Goa three districts of Maharashtra, 13 districts of karnataka, and whole of Nepal. The
group has in total 18 bottling plants in India & Nepal is responsible for producing and marketing
44% Pepsi requirement in India.
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ENTRY OF
PEPSICO IN
INDIA .
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In 1988 , Fruit drinks market was valued at Rs. 40 crores & was growing at the rate of 2 % . In
the year 1985, the government rejected a proposal with R.P.Goenka group. This involved the
export of fruit juice concentrates from Punjab in return for the import of the cola concentrates.
The deal offered was 3:1 Export – import ratio in return for being allowed to market PEPSI in
Indian. The Rs. 22 crore PEPSICO would have an equity holding of 39% , Punjab Agro
Industries Ltd . (PAIC) 20% & VOLTAS 24%.
Pepsi’s share which have been originally just under 40 % was whittled to about
35% & PAIC’s share was hiked to 40% , these were mainly which coke had left India in 1977 .
Thus PEPSI not only accepted the conditions but also went much further. Finallt their was a
victory for pepsi who after more than 4 years of acrimonious battle was launched in june 1990
selectively in rajasthan , Punjab , uttar Pradesh & south as a “laher-pe
In 1991 , saw a major launch of 7up & mirinda in india , which was warmly received by the
Indian customers & consumers . 1993 was a new beginning for fountain pepsi (PMX). In 1984
PEPSI achieved the no.1 position in cola brand in India . In 1996 the Mirinda attained the No. 1
position in orange beverages category’s Mr. Ramesh Vengal was the first managing director
who was their till a april 1992, Mr. Suman Sinha the current president took over from him after a
long inning with Hindustan unilever ltd.(HUL).
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Varun Beverages ltd. Was the new start , which was born in 1999 among the jaipuria group. Mr.
Ravi Kant Jaipuria launched this vest biggest plant among all other plant , which comes under
jaipuria group . this is the rising sun of jaipuria group. Mr. Ravi Kant Jaipuria group. Mr. Ravi
Kant Jaipuria who is the chairmain of this bottling plant has good result.
Mr. Ravi Kant Jaipurira got best Pepsi bottler award in 1998 for the best bottler in
the world. The best Pepsi award is the highest honorable award to any franchisee.The complete
new plant Varun beverages Ltd. Has structured in plot no. 477-479, 107 K.M. stone Agra- Delhi
NH-2 village dautana, The- Chatta disit. Mathura, Utter Pradesh. This is not only the bottling
plant per bottles are also manufactured. The present filling capacity of this plant is 1000 bottle
per minute with 2 lines. The two lines are glass bottles lines.
The annual capacity of this plant is around 88 lacks create of bottle soft Drink.
These beverage market under different brands named as Pepsi, Mirnda Lemon , Mirinda
Orange, 7UP, Leher Soda Etc
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Bottle FillingInspection Bottle Washing
Inspection Q.C. Testing
manufacturing processProcess flowchart
Water preparation softening & treatment Sugar Raw sugar Q.C.testing Syrup
Chemical & Additives
Pepsi concentrate Finished sugar Q.C.Testing
Syrup Preparation
BeveragesPredaration Q.C.Testing
Co2 Carbonation of syrup
Dispatch
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Organization Chart of marketing
UNIT HEAD (DEEPAK BHALLA)
T.D.M. (Dhamendra Jain)
A.D.C.
C.E.(Sachin Dixit)
RA.M.
Retailer
Consumers
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DISTRIBUTION
SUB DISTRIBUTION
RETAILERS
CONSUMERS
VARUN BEVERAGE MANUFACTURING PLANT
MARKETING VARUN B0EVERAGE DIVISION
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ABOUT RKJ GROUP
It can be said with absolutely certainly that the RKJ Group has carved out a special
niche for itself. Our services touches different aspects of commercial and civilian domains like
those of bottling. Food Chain and Education . Headed by Mr. R.K. jaipuria, the group as on
today can lay claim to expertise and leadership in the fields of education , food and beverages.
It business of the company was started in 1991 with a tie-up with PEPSI Foods
limited to manufacturer and market PEPSI brand of beverages in geographically pre-defined
territories in which brand and technical support was provided by the principals viz., PEPSI
FOODS Limited. The manufacturing facilities were restricted at Mathura Plant only.
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Varun Beverages Ltd. Is the flagship company of the group. The group also became
the first franchisee for Yum Restaurants International [ formerly PepsiCo Restaurants (India)
private Limited ] in India. It has exclusively franchise rights for Northern & Eastern India. It has
total 46 Pizza Hut Restaurants & 1 KFC Resturant under its Company.
We diversified into education by opening our first school in Gurgaon under
management of Delhi Public Schools society. The schools of the group are run under a
Registered Trust namely Champs Devi jaipuria Charitable Trust. Companies are mediumsized ,
professionally managed, unlisted and closely held between India Promoters and foreign
collaborators. The group added another feather to its cap when the prestigious PepsiCo
“International Bottler of the year” award was presented to Mr. R.K. Jaipuria for the year
celebrations at Hawaii, USA. The award was presented by Mr. Donald M. Kendall, founder of
PepsiCo Inc. in the presence of Mr. George Bush , the 41st President of USA, Mr. Roger A.
Enrico, Chairman of the Board & C.E.O., PepsiCo Inc. and Mr. Craig Weatherup, president of
PEPSI Cola Company. NEW DELHI OCT 20 : Ravi K. Jaipuria (RKJ) , ONE OF PEPSICO
India’s largest franchisee bottler , says that despite a slump in pepsi sales , he is going ahead with
capacityb expansion plans with an investments of RS. 100 crore over a period of next six
months.
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The investments will see setting up of two new plants through varun beverages
(a bottling company of RKJ and part of the RS. 1,200-CRORE Jaipuria Group) at bhilwdi &
jaipur in Rajasthan ands also a foray into the manufacturers of crowns and plastics shells for
glass bottles, RKG Chairman Ravi Jaipura Group collectively forms about 45% of Pepsi’s total
franchisee business.
According to Varun beverages president- finance Mr. R.P. Gandhi, the company is
spending Rs. 60 crore to set up a new bottling plant at Bhilwadi, Rajasthan, with an installment
capacity of 80 lakh cases. A 15 acre plot has already been acquired by te company and the plant
commissioned last month – is expected to come up y March 2004.
Additionally, the company plans to raise capacities at its Kosi Plant I UP by 30 Lakh cases,
pumping in an advertisement of Rs. 15 crore. As part its backward integration venture, Mr.
Jaipuria is setting up a new plant for manufacture of crowns and plastic sell at Ajmer Road,
Jaipur, with an investment of Rs. 250 crore.
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While admitting that Pepsi’s sales were hurt post-cola contamination controversy,
Mr. Jaipuria, however, maintained that “it was difficult to access wheather the slump was due to
the controversy or a lean monsoon. Weather has played a spolit sport, too, and the season has
been dull so we can’t really say whether sales has been hit by the pesticides issue alone,” he said,
adding that otherwise 2003 has been an excellent year for soft drinks sales.
With the new initiatives, the RKJ group which operates through two companies –
Varun Beverages & Devyani- Hopes to achieve a sales turn over of Rs. 600 crore by the end of
2004, and Rs. 720 crore by 2004. the company posted a sales turn over of Rs. 500 crore in 2002.
The RKJ group led Mr. Jaipuria has 7 pepsi bottling plants spread around the
country in Noida and Kosi(UP), Alwer & Jodhpur(Rajasthan), Goa, Dharwar(Karnataka) And
Kathmandu(Nepal). The total capacities at these unities is about 220 lakh cases as per year or
5000 bottles per minutes.
Decide the soft drink business, RKJ is also firmly entrenched in the foods &
education Business. Part of the Rs. 12000 crore Jaipuria group which has interested in the
diverse fields including pepsi , pizza hut (he’s the sole franchisee of pizza Hut in the north india)
and DPS schools .
.
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VISION
Being the best in everything we though and handle.
MISSION
Continuously excel to achieve and maintain leadership position in the chosen
businesses, and delight all stakeholders by making economic value addition in all corporate
functions.
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PEPSI BOTTLING PLANTS IN INDIA
1. Goa, Salcete
2. Karnataka, Dharwad
3. Rajasthan, Bhilwadi
4. Rajasthan, Jodhpur
5. Rajasthan, Alwar
6. Uttar Pradesh, Greater Noida
7. Uttar Pradesh, Kosi
8. Kathmandu, Nepal
9. Rajasthan, Jaipur
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MAJOR UNITS OF VBL
Kosi Kalan Nepal Bhiwadi Kolkata Jaipur Jodpur Noida (U.P.) (Raj.) (Raj.) (Raj.)
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BRAND AVAILABLE IN THE MARKET
Table-1
PEPSI Products
Table 1
Product Name / Package 200ml. 300ml. 500ml. 1Ltr. 1.5Ltr. 2Ltr.
Pepsi Yes Yes Yes No No Yes
Mirinda (Lemon) Mirinda (Orange)
Yes Yes
Yes Yes
Yes Yes
No No
No No
Yes Yes
7-UP Yes Yes Yes No No Yes
Slice Yes Yes Yes No No Yes
Mountain Dew Yes Yes Yes No No Yes
Aquafina (Mineral Water) Yes Yes Yes No No Yes
Lehar Soda Yes Yes Yes No No Yes
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HISTORY
OF
COCA-COLA
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HISTORY OF COCA-COLA
The Coca-cola company exists to benefit & refresh every one it touches. Founded in 1886,
company is the worlds leading manufacturers, marketer, & distributor of non alcoholic beverages
concentrates & syrups, used to produce nearly 400 beverages brands. Its corporate head Quarters are
in Atlanta, with local operation in over 200 countries around the worlds most widely recognised
brands. It is the single global competitor of Pepsico.
COCA-COLA INDIA:
After a 16 years absence, Coca-Cola returned to India in 1993. the company’s presence in India
was cemented in November that year in a deal that gave drink Coca-Cola ownership of the nation’s
top soft brands and bottling network. Coca-cola India has made significant investments to build and
continually improve its business in India, including new production facilities, waste water treatment
plants, distribution system and marketing equipment. During the past decade, the Coca-cola system
has invented mote than US$ 1 billion in India.
COCA-COLA PRODUCTS IN INDIA:
Leading Indian brands Thums Up, Limca, Maaza, Citra and Gold Spot join yhe company’s
international family of brands including Coca-cola, diet coke, Sprite and Fenta, plus the schweppens
product range.
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BRAND AVAILABLE IN THE MARKET
Table-II
COCA-COLA Products
Table 2
Product Name / Package 200ml. 300ml. 500ml. 1Ltr. 1.5Ltr. 2Ltr.
Coca-Cola Yes Yes Yes No No Yes
Thums-up Yes Yes Yes No No Yes
Sprite Yes Yes Yes No No Yes
Limca Yes Yes Yes No No Yes
Mazza Yes Yes Yes No No Yes
Kinley (Mineral Water) No No Yes Yes No No
Kinley Soda No No Yes Yes No No
Coke No No Yes Yes No No
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RIVALY OF PEPSICO WITH COCA-COLA:
Coke still outlets PEPSI in all most all areas of the worlds. Saudi Arabia and the
Canadian provinces of prince Edward island. New found land and Labrador, Ontario & Quebec
are some of few exceptions. By most accounts , coca – cola was India’s leading soft drink until
1977 when it left India after a new government order the company to turn over its secret formula
for coca – cola and dilute its sake in its Indian unit as required by the foreign exchange
regulation act (FERA) . in 1988 , pepsi gained entry to indid by creating o joint venture with the
Punjab agro industrial corporation (PAIC) and voltas India limited.
This joint venture marketed and sold Lehar pepsi until 1991 when the use of foreign
brands was allowed; pepsi bought out its partners and ended the joint venture in 1994. in 1993 ,
coca – cola returned in pursuance of India’s liberalization policy . [10] in 2005, coca – cola and
pepsi together held 95% market share of soft – drink sales in India . coca – cola India’s market
share was 60.9%. [11] other claim that due to rumors of the use of cocaine, coke was banned for
a long time in india & recently the ban was lifted, how ever, Pepsi has maintained a commanding
market share.
Pepsi had long be the drink of Canadian, Francophone & it continues to hold its
dominance by replying on local Quevecois celebrities (Specially Claude Meunier , of La Petite
Vie Fame) to sell its product. “Pepsi ” eventually became an offensive nick name for
Francophones viewed as a lower class by Anglophones in the middle of 20th centaury.
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The termed is now used as a historical reference to Franch-English linguistic animosity (During
the partitionist debate surrounding in 1995 referendum, a pandit wrote, “And a wall will be
erected the along st-laurent street [the traditional devide between franch and english in montreal]
because some people were throwing coke bottel one way and Pepsi Bottles the other way”)
According to consumers’ reports, in 1970, the rivalry continued to heat up the market. Research
proved that the Pepsi is preferred over coke. The way that they prove this way by blind taste tests
that were conducted in stores. These test were called “challenge Booths”. The sales of Pepsi
started to climb, and Pepsi kicked of the “challenge” across the nation.
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SWOT ANALYSIS
38
SWOT ANALYSIS
An analysis that include environmental analysis competitive analysis & analysis of
corporate strengths, weakness, threats & opportunities.
STRENGTHS:
1). Top management decides strategic planning and its implementation regarding the availability,
affordability of its brands.
2). Top management is very effective it take decisions on every aspects of business like social
responsibility , sales promotion , marketing , finance distribution etc.
3) company has goodwill among the public.
4) Effective distribution channels.
5) Effective advertisement Systems.
6) Company has automated plant for production.
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WEAKNESSES:
1) The organization structure is not properly designed.
2) Demand of specific product are not fulfilled.
3) Mismanagement is distribution of advertising materials.
4) Quality of some product is not good like mirinda & lemon.
5) Sales representatives of company are not performing according there efficiency so sales
effected.
OPPORTUNITIES:
1) VBL must be fulfilled the demand of market with it Pepsi can increase its market share.
2) Company can capture more market share if it covers those areas where competitor has not
reach.
3) Company should consider on non user of cold drink.
4) Company can capture more market share when introduce 200 ml for children at
reasonable price.
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THREATS:
1). Company should maintain present market share.
2). Policy regarding the scheme should be transparent because it creating dissatisfaction among
the retail outlet holders.
3). Main competitor of Pepsi is Coke. Now a days coke is improving planning, strategies, & its
implementation. Company should also change the market strategies.
4). The forth coming market would be the market of consumer so the scheme must be consumer
oriented.
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CHAPTER - 3
42
INTRODUCATION
OF THE TOPIC
43
COMPARTIVE ANALYSIS OF PEPSICO & COCA-
COLA ON BRAND POSITIONING STRATEGIES
BRAND:
Brand the distinguishing proprietary name, symbol, or trademark that differentiates a particular
product, or service, from other of a similar nature
BRAND POSITIONING STRATEGIES:
.
1) Quality Positioning
Perception of quality is probably one of the most important elements for a brand to have and
can be combined with any of the other prompts below.
Quality or the perception of quality lies in the mind of the buyer. Build a powerful perception
of quality, and you will succeed in creating a powerful brand.
The 22 Immutable Laws of Brandis say the best way to increase perception of quality is to
narrow the company’s focused. When you narrow a product’s focus, they explain, you
become a specialist rather than a generalist, and a specialist is perceived to know more or be
of “higher quality” than a generalist.
Another way to build the perception of high quality is to simply attach a higher price tag to
your brand. More people think that they know a higher quality product from another but in
reality; things are not always as they seem.
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Believe it or not, high price is a benefit to some customers. It allows the affluent consumer to
obtain psychological satisfaction from the public pirchase and consumption of a high end
product. Of course the product or service does need to have some perk or difference to justify
the higher price.
2. Value Positioning
Although at one time, items that were considered to be a good “value” meant that they were
inexpensive that stigma has fallen by the wayside. Today, brands that are considered a value
are rising in popularity amongst consumers.
3.) Feature Driven Positioning
More marketers rely on product/service features to differentiate their brands than any other
method. The advantage is that the message is clear, and the positioning will be credible if you
stick to the facts about the product.
Unfortunately, feature orientated stances are often rendered useless if the competition comes
out with a faster or more advanced model.
4.) Relational Positioning
One of the most effective ways to create interest in a brand is to send out a positioning
prompt that resonates well with potential buyers. For instance, sketches equate sneakers with
cool and that characteristic passes to all who wear them.
These brands have achieved positioning based on who buyes what they sell, not solely by
what they sell.
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5.) Aspiration Positioning
These are positioning prompts that offer prospects a place they might like to go, or a person
they might like to be, or a stake of mind they might like to achieve.
6.) Problem/Solution Positioning
As the name implies, problem/solution prompts show the consumer how a sticky situation
can be relieved quickly and easily with the brand or service. What problem/solution
campaigns lack in imagination, they usually make up for in directness and credibility.
7.) Rivalry Based Positioning
By definition positioning deals with how one brand is thought of compared to its obvious
competitors. Therefore, the idea of a rivalry-based position might seem redundant but many
campaigns take this approach.
8.) Warm and Fuzzy Positioning
Underneath our capitalist driven needs to consume, we or still docile and emotional animals.
As such, many marketers play on our feelings.
How people feel about a brand is often times need or desire based which means that
emotional or psychological approaches can oftentimes be very effective as positioning
prompts.
9.) Benefit driven Positioning
Other brands base their entire positioning on the fact that they give back to the consumer.
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CHAPTER - 4
47
RESEARCH
METHODOLY
48
RESEARCH METHODOLGY
Methodology is the most important part of such studies. The method of study adopted by me to
increase the knowledge and together more information regarding this project.
The major emphasis in such studies is on the discovery of ideas and fruitful relevant
information. As such the research design appropriate for such studies must be flexible enough to
provide opportunities for considering different aspects of a problem under study.
METHODS OF DATA COLLECTION:
1. PRIMARY DATA:
Survey Method – this method was adopted because it helped in securing detailed
information from a sample of respondents. The information received from the
respondent is recorded on a form called the questionnaire. This is only method to major
attitude and motivation directly.
Open framed discussion with managers.
49
2. SECONDARY DATA:
I have also used the secondary data, which included the written document of the
sorganization and other places.
HEAD OFFICE(VBL)
INTERNETs
PAPERS & RECORDS
The data collected from the above mentioned sources helped me in getting information about the
brief history of PEPSI Co.
SAMPLING PLAN:
Target population of the universe Retailers, Maholi Road, Bus stand, State
Bank Chouraha, Dholi pyaoo, Court area,
Aurangabad, Birla Mandir, Masani, Link
Road & Kacchi Sadak, Mathura(UP)
Sampling Size 1000
Sampling Method Simple random Sampling
Area of Survey Mathura Region
50
CHAPTER - 5
51
ANALYSIS
&
INTERPRETATION
52
FLAVOURS OF PEPSI
&
COCA-COLA
COMPARATIVELY
53
COLA FLAVOURS”
Cola is a most popular flavor in any group of age. This is the most saleable flavor in the world.
Both PEPSICO & COCA-COLA has its own cola flavor. PEPSICO has a cola flavor named PEPSI
and cola flavor of COCA-COLA are THUMPS UP & COKE. PEPSI COLA is a cash cow brand for
the company in terms of sales revenue. PEPSI has two comparative brands in the cola flavor.
54
LIME & LEMON FLAVORS
This segment of flavor is very likely in the children and aged person . PEPSICO has three brands in
this segment with comparison to the brand of COAC – COLA . The PEPSI’S brand are
MOUNTAIN DEW, MIRINDA LEMON and 7UP whether the COCA COLA has its sprit &
LIMCA un this segment . MIRINDA LEMON is considered to be lemon in taste , comes under
the category of cloudy lemon of its color which is similar to that of clouds. It has to yield good
revenue. MOUNTAIN DEW is the sweet lemon soft drink in India and in a few countries. It is
mostly demands by the children.
7UP s lemon –lime soft drink. Sales of 7UP is third largest carbonated soft drink brand in U.S.
most consumers prefer 7up as a their favourite brand than any other non-cola.
55
“ ORANGE FLAVOURS”
This is another type of flavour in the soft drink industry. The taste is like orange. In this
segment PEPSI has a brand named MIRINDA whether COCACOLA has its FANTA in orange .
this flavor is mostly preferred by children and women.
PEPSI:
COCA-COLA:
56
“ MANGO FLAVOURS”
In this category’s of flavour is like a Mango. This flavour is now becoming more popular in India. In
Mango flavour PEPSI has a well known name SLICE whether COCACOLA has a MAZAA in
this segment.
PEPSI:
COCA-COLA:
57
NEW BRANDS LAUNCHED BY PEPSICO
7UP ICE :-
PEPSICO India recently launched a new flavour named “7UP ICE” IN Indian market. It is
hard that 7UP. The taste of 7UP ICE is mint.
MIRINDA BAT
PEPSICO is recently launched MIRINDA BAT BERRY. The taste of MIRINDA BAT
BERRY is like Glico din.
58
NEW BRANDS LAUNCHED BY COCACOLA
SPRITE ICE
COCA-COLA India is recently launched “SPRITE ICE” in the competition of “7UP ICE” of
PEPSI. This is a newly kind of flavor ads by both of companies.
59
AREA WHERE SURVEY IS CONDUCTED
1. Bus Stand
2. Maholi Road
3. State Bank Chauraha
4. Dholi PiauS
5. Court Area
6. Orangabad
7. Birla Mandir
8. Link Road
9. Kachhi Sadak
10. Masani
60
Pepsi
Cocacola
ANALYSIS AND INTERPRETATION
A survey with sample size 100 is conducted on randomly basis in different parts of Mathura to take the help in comparative analysis of PEPSI & COCACOLA.
All the samples, which are selected, are the retailers/outlets of PEPSI and
.COCACOLA.
COMPARATIVE SALE IN “200 ML”
COMPARATIVE SALE IN 300 ML
The sale of pepsi in 300 ML is Greater than The coco cola.
61
COMPARATIVE SALES IN “500ML”
62
COMPARATIVE SALES IN “2L TR”
The comparative sale of pepsi in 2 L TR is greater than the coco cola
63
COMPARATIVE SALES IN “CAN”
64
EXTRA EFFORTS MADE BY RETAILERS TO SELL PEPSI
According to the survey conducted I fond that the retailers do not make some extra efforts to sell
PEPSI. The company should makes such promotion activities and motivate the retailers by any
means so that they should make some extra efforts to increase the sales of Mountain Dew.
65
CHAPTER - 6
66
FINDINGS
67
FINDINGS OF CONSUMERS SURVEY(SAMPLE SIZE 200)
Division of consumers according to :-
Age group
Below 20 40%
41%
30-40 12%
Above 40 7%
Gender
Male 70%
Female 30%
Education
Under Graduate 38%
Graduate 34%
Post Graduate 15%
Professional 13%
Profession:-
Student 56%
Service 22%
Business 18%
Any other 4%
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Frequency of consuming soft drink:-
Daily 31%
Weekly 20%
Occasionally 46%
On any occasion 3%
Reason for consuming soft Drink:-
Refreshing 65%
Hygienic 6%
Thrust 20%
Fizzy 9%
69
CHAPTER - 7
70
LIMITATIONS
&
CONCLUSTION
71
LIMITATION OF THE SYUDY
Responsible managers & personals in the marketing department of varun beverage Ltd. Provide
necessary assistance to me in “Comparative Analysis Of Pepsi & Coca Cola”. They discussed
different aspects & Function of marketing .as practical pepsico India Ltd (VBL). Almost all
necessary information was provided to me in the support of this project report.
How ever some problems , which can not escape from . the limitation faced , felt or expressed by me
are as follows-
Due to lack of time (i.e. two months) it is not possible to reach all respondents.
The lack of availability of time on the respondent’s part.
Some respondent’s was biased.
Unwillingness of the respondents.
I tried to overcome on these limitations.
72
CONCLUSION
CONCLUSION OF THE STUDY
73
I have studied and analyzed the comparison of PEPSI & COCA COLA on different aspects of
the market , outlets , distribution & consumers . The survey was conducted in various areas of
Mathura city with great Enthusiasm. This project report concludes that PEPSI is much strong
than the COCA COLA and 100% is tough job & the most important Thing , which I feel to
improve , is “the availability to retailers & consumers”.
The retailers & consumers both promotes either PEPSI or any other of its brands
(e.g. Mountain Dew ) for could be with regard to order processing , ware housing , inventory
Management & Transportation , besides that shop covering , time of enter & exit from the
market by the sales man , cooling appliances, glow shine board , schemes , incentives , prizes ,
gifts , discounts , proper biling , returning of defective goods , proper supply should be
improved.
My objective was to make marketing managers aware of all the problems so that a
proper course of action is required to be undertaken. The only competitor of PEPSI is COCA –
COLA & no local brands can beat PEPSI.
74
CHAPTER - 8
75
RECOMMENDATION
&
SUGGESTION
RECOMMENDATIONS & SUGGESTIONS
After copleting this report I find my self able to recommend Varun Beverages Ltd. To boost up
the sales of PEPSI & it’s other brands.
76
1) PRODUCT AWARENESS PROGRAMES FOR CONSUMERS & RETAILERS
SHOULD INCREASED
A) For Retailers:-The company should organize seminars , but there must be
compulsion for Retailers to attend the seminars.
B) For Consumers:- The company should organize some more programmes in different
localities . Awareness programmes may help increases the market share of PEPSICO.
2)SUPERVISION ON THE DISTRIBUTION ROOTS IS REQUIRED
The main purpose behind this is that there should be time to time eye check on
salesmen’s efficiency & on top of that they are going to meet retailers directly.
3) PROMPT DELIVERY OF PRODUCTS
77
Prompt delivery of the product to the customers is very much necessary towards
enchancing the reputation of company & which is defining helpful in keeping the
customers.
4) PEPSICO should keep sales engineers in various areas to provide technical support to the
outlets related to the cooling system.
5) The schemes & the other information are properly communicated to retailers so they are
better equipped to handle the quarries of customers properly.
6) Another problem is replacement i.e. any bottle has some defect than the salesman replace it
immediately.
7) There should be the time to time & proper survey of the market.
8) on extra sales upto some predetermined margins the sales force should paid extra
commissions & bonuses.
9) The should motivate its sales force to take the achievement higher than the targeted by
rewarding them properly.
78
CHAPTER - 9
79
BIBLIOGRAPHY
80
BIBLIOGRAPHY
BOOKS
Kotler , Philip, Marketing Management : 12th Edition 2006
Kothari , C. R. , Research Methodology , 2e New Age International publisher
Gupta C. B. , Marketing Management , 8th e 2006 Sultan Chand & Sons
WEB SITES
http://www.pepsico.com/
http://www.pepsi.com/
81
CHAPTER-10
82
ANNEXTURES
&
QUESTIONNAIRE
83
QUESTIONNAIRE
Name:……………………………………………………………………....
Contact person:……………………………………………………………..
Kind of shop:
o Eatery
o Grocery
o Confectionary
o Others
Which brand you purchase:
o Pepsi
o Coca-cola
o Both
What kinds of strategies used by two companies.
o Rigid Strategies
o Unsatisfactory Non-aggressive
o Satisfactory
o Good
Does Advertisement influence your decision for choosing a particular brand
o Yes
o No
o Can’t say
o 35 years & above
84
Customer preference depends upon:
o Brands
o Availability
o Scheme
o Advertisements
If customer preference depends upon scheme, then which age group is mainly effected by
it:
o Below 15 yrs
o 15-25 yrs
o 25-35 yrs
o 35 yrs & above
Average monthly consumption of Pepsi & Coca-cola:
o PEPSI
o COCA-COLA
Would you go for another brand away from the Pepsi & Coca Cola offer better product
and service?
o Yes
o No
o Uncertain
Do you make some extra efforts to sell/promote the PEPSI:
o Yes
o No
85
Would you go for another brand away from the Pepsi & Coca Cola offer better product
and service?
o Yes
o No
o Uncertain
What category of customer does advertisement affect more?
o Male
o Female
o Children
What is the peak time of sale of cold drinks?
o Summer
o Winter
o Rainy
o Spring
Who is your target customers for brand positioning?
o Young
o Old
o Children
On what basis they segment their population?
o Geographically
o Demographically
o Psychologically
86
Which is most sale oriented brand positioningl stratigies?
o Value positioning
o Quality positioning
o Relational positioning
What method is used by two companies for their brand positioning?
o Customer oriented
o Competition oriented
o Cost oriented.
Does brand positioning affect customer state of mind?
o Yes
o No
Does Advertisement effect the customer decsition of buying cold drinks?
o Yes
o No
87
Any suggestion to company
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
…………………………………………………….
88