Pepsico Project

SUBMITTED BY:PANKAJ TIWARIJAIPURIYA INSTITUTE OF MANAGEMENT LUCKNOW

A PROJECT ON PRODUCT AVAILABILITY AND

MARKET RESEARCH

PREFACE

There is a famous saying “The theory without practical is lame and practical without

theory is blind.”

This modern era is era of consumers. Consumers satisfy themselves according

to their needs and desires, so they choose that commodity from where they extract

maximum satisfaction.

It has been identified that in the beginning of 21st century the market was

observed a drastic

change. The

successful brand

presents itself in

such a way that

buyers buy them in

special values which

match their needs.

Marketing is an

important part of any

business and

advertisement is the

most important part

of marketing.

Summer training is

an integral part of the

PGDM and student of Management have to undergo training session in a business

organization for 6 weeks to gain some practical knowledge in their specialization and to

gain some working experience.

Our institution has come forward with the opportunity to bridge the gap by

imparting modern scientific management principle underlying the concept of the future

prospective managers.

To the emphasis on practical aspect of management education the faculty of

Jaipuria Institute of Management,Lucknow has with a modern system of practical

training of repute and following management technique to the student as integral part of

PGDM. in according with the above obligation under going project in “Pepsico India Pvt.

Ltd. The title of my project is “Research on Product Availabilty & Market Research”

of pepsico’s beverages product in lucknow.

Certainly this analysis explores my abilities and strength to its fullest extant for

the achievement of organization as well as my personal goal.

(Pankaj Tiwari)

ACKNOWLEDGEMENT-

I PANKAJ TIWARI is highly indebted to Pepsico’s management for their continuous guidance, constant supervision as well as for providing necessary information regarding the project and also for supporting in completion of the project.My thanks and appreciation also goes to my colleagues in developing the project and willingly taking part in the completion of the project.

Special thanks to Mr Vivek Sur(GM), Mr Viveka Patel(AGC), Ms Poonam Kumari, Mr Rajiv Paul and all our CE’S(Mr Shavaid, Mr Mohit, Mr Harshendra, Mr Mukesh)for their continuous support and guidance.

CONTENTS

Preface

Acknowledgement

Title

Chapter 1. Research Methodology

Chapter 2. Objective of study

Chapter 3. Introduction to Project

Chapter 4. Introduction to the Soft Drink Market

Chapter 5. Introduction to the Soft Drink Market in India

Chapter 6. Company Profile

Chapter 7. Comparative Analysis of Pepsi & Coke

Chapter 8. SWOT Analysis

Chapter 9. Five Force Analysis

Chapter 10. Area Wise Index Analysis

Questionnaire

1. Research Methodology

Problem statement / Objective of the research

To Study the concept of distribution channel and logistics in the soft drink industry

and to study the flow of soft-drink bottles in the market and compare it with the main

competitor in the industry.

Major objectives

To study the satisfaction level of retailers.

In depth study of the distribution channel of Pepsi and coke

Critically compare the Supply chain management of the both company.

Find out the limitation and strength of both companies.

Research design

The research design that will be use is descriptive research

Involves gathering data that describe events and then organizes, tabulates,

depicts, and describe the data

Uses description as a tool to organize data into patterns that emerge during

analysis

Often uses visual aids such as graphs and charts to aid the reader.

Description research takes a “what is” approach

Refers to the nature of the research question

The design of the research

The way that data will be analyzed for the topic that will be researched

There are three methods of data collection under this method. They are:

Survey

Interviews

Observations

Sampling plan

Target population: Retailers who stock coke and pepsi mainly panwala’s n

small retailers

Sampling size: 307

Sampling technique: convenience sampling

Sample Frame: - All members in the retailing channel and who influence

the channel.

Sample Unit: - Any retailer and dealer who stock pepsi and coke.

Sampling Method :- Non probability convenience sampling

Data collection sources

Primary data

Primary data would be collected through the structured questionnaire consisting mainly

open ended questions

Secondary data

Secondary data would be collected from the internet, journals, and reference books.

Marketing Research

Scope of the study

ANALYSIS OF DATA

All the open-ended questions will be analysed by adding up the responses against each

alternative and answers from the various respondents.

Transcripts will result in the finding to explore the changes that are likely to impact the

unique aspects of beverage industry, with present scenario in India and in world. Our

findings will show the current trends in beverage industry, various problems faced by

the industry according to various respondents.

Expected contribution of the study

The analysis made as a part of this study may contribute in a way analysis of strength

and weakness of the sector as whole may be taken into consideration and various firms

together may make efforts to overcome those limitations and as a result not only the

beverage manufacturing firms would be benefited but others who uses the services of

these firms would also be benefited.

Beneficiaries of the study

The outcomes analysed from this study would be beneficial to various sections such as:

- Beverage industry

This study would definitely benefit the soft drink firms in a way that services

provided by various firms would be compared and also the five force model

analysis of this sector reveal the potential threats to the existing players.

- Corporate

The benefits to the corporate would be that they would be well versed with

detailed information about various services provided by different firms so that

it would easier for them to select a particular soft drink firm to assist them in

various logistic problems.

- Researchers

The major beneficiaries from the project would be the researchers themselves

as this study would enhance their knowledge about the topic. They get an

insight of the present scenario of this industry as this is the emerging industry

in the beverage sector of the economy. Detail knowledge of various services

provided by the soft drink firm will help researchers and others to pursue

career in this industry.

Problems In Marketing research

Non Response of the Retailer

Understanding of the questionnaire of the retailer

Giving any answer without understanding the question or without thinking.

STATISTICAL TOOLS

Representation of statistical data by diagram, graphs, charts, or pictures is more

effective then tabular representation being easily intelligible to layman. Indeed diagrams

are most essential whenever it is required to convey any statistical information to the

generic public.

The more important types of diagram which is use in statistical work are:-

BAR DIAGRAM

Mode of diagrammatic representation of data is the bar diagram. In this method the bar

of equal width are taken for the different items of the series. The lengths of the bar

represent value of the variables concerned.

x

CH: 2

Objective of the Study

2. Objective of the Study

Since last few years, soft drink market is India at the end of the 2000-2010 decade. So

both the soft drink major viz. Coca Cola and Pepsi has been emphasizing of placing

their brand at as many outlets as possible so that could cope up with the competition

spreading at a growth rate of 8-10%, it has forecasted that it would become Rs.9000

Crore market in India.

The main object of this project is to comprehensively analyze the distribution of

pepsico and its strength in market against its rival Coca-Cola and also to be

aware like the shopkeeper about the sale and display of the Pepsicos’s brand like

Pepsi, Dew etc.

This was done in two ways:-

a) Comprehensive market analysis was done by visiting various shops through

out Lucknow.

b) To ask the shop keeper about the promotions and schemes given to them to

them in order to sell and promote their products.

CH: 3

INTRODUCTION TO THE PROJECT

3. Introduction to the Project

There is a huge fight between the two soft drinks giant Coca-Cola (Coke) and PepsiCo

(Pepsi) to grab a large part of the Indian markets. The main reason, well the growing

Indian middle class and the huge disposable income they have and also the increasing

consumption of soft drinks by Indians.

Pepsi and Coke both have brands attacking each other if Coke introduces one brand

then Pepsi will bring another brand to fight it and vice a versa. Though Coke is this huge

giant and Pepsi might be just a fly in front of it but the fly troubles and is much capable

of fighting back and also winning.

The main area where they can capture each others market is in the network of

distribution channels they use with restaurant chains, pan walas, hotels and eateries to

compete with each other. It is to these sellers where these two giants are vying for in

order to capture a larger market share and trounce the other and that is why the project

on the satisfaction of these members to see who is winning the competition.

According to industry experts, the market for carbonated drinks in India is worth US$ 1.5

billion while the juice and juice-based drinks market accounts for US$ 0.25 billion.

Growing at a rate of 25 per cent, the fruit-drinks category is one of the fastest growing in

the beverages market. Sports and energy drinks, which currently have a low penetration

in the Indian market, have sufficient potential to grow.

The market for alcoholic beverages has been growing consistently. 'The Future of

Wine', a report on the state of the wine industry over 50 years, suggests that the market

for wine in India was growing at over 25 per cent per year.

Major investments

Private investment has been one of the key drivers for growth of the Indian food

industry. The 'India Food Report 2008', reveals that the total amount of investments in

the food processing sector in the pipeline for the next three years is about US$ 23

billion.

The government has received around 40 expressions of interest (EoI) for the

setting up of 10 MFPs with an investment of US$ 514.37 million.

Reliance Industries Ltd has invested US$ 1.25 billion in a dairy project.

Focusing on India as a rapidly growing market, US soft drinks giant PepsiCo

would pump in an estimated US$ 152.30 million to set up four new food and

beverages projects by 2012.

Geneva-based food service chain Global Franchise Architects (GFA) aims to

open 250 stores around the world by March 2010, of which 100 will be in India.

Today India is one of the most potential markets with the population of around 1000

million people. There is a growth of 30% in the soft drink industry. These factors are the

reason for the entry of two giants in the soft drink industry in the world to enter in the

Indian market. The cola giant’s coke and Pepsi, together control almost 96% of entire

Indian market while other companies has only share 4%.

In a long span, a culture transforms itself over and over. The map is remade attitude

change for better or worse. Processes are invented, hailed as revolutionary and

discarded obsolete. So it was one hundred year was a very much different world from

what we have today, but at least one sense, not very different at call. Many reasons

have been advanced to explain the last century. With over 100 yrs. Of interrupted

growth despite war, economic depression and other disturbances there be something

that sets soft drink apart from the consumer culture.

CH: 4

INTRODUCTIONS TO THE SOFT DRINKS MARKET

4. Introduction to the Soft Drinks Market

The main production of soft drink was stored in 1830’s & since then from those

experimental beginning there was an evolution until in 1781, when the worlds first cola

flavoured beverage was introduced. These drinks were called soft drinks, only to

separate them from hard alcoholic drinks. This drinks do not contains alcohol & broadly

specifying this beverages, includes a variety of regulated carbonated soft drinks, diet &

caffeine free drinks, bottled water juices, juice drinks, sport drinks & even ready to drink

tea/coffee packs. So we can say that soft drinks mean carbonated drinks. Today, soft

drink is more favourite refreshment drink than tea, coffee, juice etc. It is said that where

there is a consumer, there is a producer & this result into completion. Bigger the player,

the harder it plays. In such situation broad identity is very strong. It takes long time to

make broad famous. Coca – Cola has its beginning in 1981 & since then has been one

of the three most dominate players in this soft drink industry.

The name “soft drink” was given by Americans as against hard drink, which is mainly

alcoholic. So in general terms non-alcoholic drinks are considers as soft drink. Soft drink

consists of flavour base, sweetener and carbonated water.

The major participants involved in the production and distribution of soft drink are

concentrate and syrup producer’s bottlers and retail channel concentrate-producers

manufactures basis of soft drink flavour and send them to bottlers. Bottlers purchase the

concentrate and add carbonated water and sometime sweeter and bottle or can the soft

drink. This soft drink delivered to the customer accounts retail channels that sales or

serve the product directly to the customers.

In USA soft drink had existed since the early 1800’s where many US druggists had

concentrate blend of fruit syrups and carbonated soda water that they sold them at their

soda fountains.

4.1 History of Soft Drinks

1798 The term "soda water" first coined.

1810 First U.S. patent issued for the manufacture of imitation mineral waters.

1819 The "soda fountain" patented by Samuel Fahnestock.

1835 The first bottled soda water in the U.S.

1850 A manual hand & foot operated filling & corking device, first used for bottling soda water.

1851 Ginger ale created in Ireland.

1861 The term "pop" first coined.

1874 The first ice-cream soda sold.

1876 Root beer mass produced for public sale.

1881 The first cola-flavored beverage introduced.

1885 Charles Aderton invented "Dr Pepper" in Waco, Texas.

1886 Dr. John S. Pemberton invented "Coca-Cola" in Atlanta, Georgia.

1892 William Painter invented the crown bottle cap.

1898 "Pepsi-Cola" is invented by Caleb Bradham.

1899 The first patent issued for a glass blowing machine, used to produce glass bottles.

1913 Gas motored trucks replaced horse drawn carriages as delivery vehicles.

1919 The American Bottlers of Carbonated Beverages formed.

1920 The U.S. Census reported that more than 5,000 bottlers now exist. Early 1920's the first automatic vending machines dispensed sodas into cups.

1923 Six-pack soft drink cartons called "Hom-Paks" created.

1929 The Howdy Company debuted with its new drink "Bib-Label Lithiated Lemon-Lime Sodas" later called "7 up" Invented by Charles Leiper Grigg.

1934 Applied colour labels first used on soft drink bottles, the colouring was baked on the face of the bottle.

1952 The first diet soft drink sold called the "No-Cal Beverage" a ginger ale sold by Kirsch.

1955 Coke enters for the first time into Indian markets

1957 The first aluminium cans used.

1959 The first diet cola sold.

1962 The pull-ring tab first marketed by the Pittsburgh Brewing Company of Pittsburgh, PA. The pull-ring tab was invented by Alcoa.

1963 The Schlitz Brewing Company introduced the "Pop Top" beer can to the nation in March, invented by Ermal Fraze of Kettering, Ohio.

1965 Soft drinks in cans dispensed from vending machines.

1965 The reseal able top invented.

1966 The American Bottlers of Carbonated Beverages renamed The National Soft Drink Association.

1970 Plastic bottles are used for soft drinks.

1973 The PET (Polyethylene Terephthalate) bottle created.

1974 The stay-on tab invented Introduced by the Falls City Brewing Company of Louisville, KY.

1977 Coke leaves India in order to protect its secret about the ingredients used in its soft drink

1979 Mello Yellow soft drink is introduced by the Coca Cola Company as competition against Mountain Dew.

1981 The "talking" vending machine invented.

1989 Pepsi Enters into India

1993 Coca Cola re-enters into India after the easing of economic norms

CH: 5

Introduction to the Soft Drink Market in India

5. Introduction to the Soft Drink Market in India

Although the beverage industry has been in existence for quite some time now, yet it is

still at an infant stage considering its size and place in the market. India stands at third

number in the consumption of beverage, behind United States and China. It accounts

for almost 10 per cent of global beverage consumption. Today, it is being looked as a

country that offers the greatest potential, even more so than China. This year, the

beverage industry in India is

being estimated to grow at 17% at Compounded Annual Growth Rate (CAGR).

Non-alcoholic Drinks Company actually sees India as a potential market because of the

kind of summer that India sees. The Coca-Cola Co reported its profit climbed 43 per

cent in the second quarter to two billion dollar, getting a boost from double-digit unit

case volume growth. The Indian CSD (carbonated soft drinks) market stands at 1.2

billion dollar and the fruit-based beverages and bottled water at 600 million dollar and

300 million dollar, respectively.

The wine industry in India is one of the most sought after market at present and all eyes

are on it. The budget announced by the finance minister is not being seen as very

advantageous to the wine industry as it did not announce any significant or major

benefits all round for it. It was expected to make wine sector a part of the food

processing industry, which would lead to uniformity in the state-wise tax structures. The

wine industry in India needs investment to grow to its rightful size of about 30 million

cases and it is possible only with lower production and marketing costs, taxes and

increased competition.

As far as the beer industry is concerned, age-old excise policy on liquor and multiform

regulations are hitting the beer industry. The Punjab Excise Policy of 1995, which

inadvertently discourages breweries, while encouraging distilleries, has put the brewers

in the country in a total mess. The beer industry is clearly at a disadvantage. Repeated

pleas have failed to bang the government’s deaf ear. Apart from this, the government

needs to make a uniform age limit to consume alcohol. It’s different in different states.

While an 18-year old guy can consume alcohol in Goa, you need to be at least 21 to do

the same in Mumbai. In Punjab, it’s even higher where it is kept at 25 years. The

National law is 21 years. The budget was expected to cut down the taxes on beer that is

more than most of the countries in the world. While the average global taxes on price of

the beer are 33.6 per cent, in India its about 49 per cent and therefore, affordability of

beer in the country is lowest compared to world standards.

However, the impact on non-alcoholic industry has been different. For e.g., packaged

coconut water will be cheaper by rupees three for 200ml as the retail prices have been

reduced from Rs 15 to Rs 12, thanks to the abolition of a 16 per cent excise duty. The

finance minister has also totally withdrawn the 16 per cent excise duty on tea and coffee

mixes and puffed rice. India (1002 Mn kgs), China (990 Mn kgs), Sri Lanka (318.7 Mn

kgs) and Kenya (286.0 Mn kgs) accounts for 80 percent of the world’s tea production. In

May, tea production in India rose to 71,374 tonnes from 70,267 tonnes a year before.

However, output has declined to 215.84 million kg till May this year from 240.24 million

kg last year.

The budget has also made dairy majors like Amul, Mother Dairy and Nestle happy

because the customs duty on bactofuges, that separates bacteria from milk, and

increases the Punjab Excise Policy of 1995 shelf life of milk, has been abolished. On a

bactofuge that costs between Rs 1.5 two crore, the companies will benefit rupees eight

to Rs 10 lakh a piece.

More and more companies are entering and creating niche for themselves in the Indian

budget industry, the latest being the fast moving consumer goods (FMCG) company

‘Dabur’. It is coming up with a new fruit flavored beverage called ‘Real Burst’.

Indian soft drinks story is old since the time of Raja’s Maharaja’ as they enjoyed several

soft drink like lassie, jaljeera, sharbat and tea etc. Now the Indian people have changed

their consumption pattern into soft drinks. According to Pepsi philosophy, it’s the

madness that encourages executive to think, to conjure up those creative tactics to

knock the fizz out. The warriors are face to face once again here in India with different

strategies and tactics to attack the rival. Coca cola is focusing upon the joint ventures

with the existing bottlers to enhance its control on manufacturing in marketing of its

products range and attain the equality standards of its class. Countering it Pepsi has

taken the battle in its own hands by floating as investment of $95 billion to set Pepsi Co.

India holdings as a subsidiary for company owned bottling operation (COBO). Both the

companies are following different path to reach the same destiny i.e. fetch the bigger

portion of aerated soft drink market in India.

Serving annually against the world average of 80 bottles a month. Therefore, they are

putting in their best effort to woe the Indian consumer who has tea, coffee etc. that is

why water tea, coffee and nimbu pani are considered as the competitor of soft drinks.

Cola is well set with its 53 bottling sites throughout the country giving it an edge, over

competition by processing a well built and distribution set up. On the other hand Pepsi

with 2 more years in India has been able to set an image of winner this time in India and

get the pulse of Indian soft drink market. The soft drink giants are leaving no stone

unturned and her for the long-terms.

Coca Cola has been penetrating the market through its wide product range with a

determination to change consumption pattern of soft drink in India. Firstly, they

upgraded the whole industry by introducing 300 ml bottles, which in turn had given the

industry a booming growth of 20% as compared to the earlier 5 % they want to develop

a Coca culture and are working on a strategy of offer soft drink in every possible

package. In Coca Cola camp, the idea of competition has not come from Pepsi, but

from the other beverages such as Tea, Coffee, Nimbu Pani and Water etc.

Pepsi is quite aggressive in its approach to Indian consumer. They are desperately

working on the strategy to work for 1.5 hour to buy a bottle of soft drink in comparison to

the international norms of 5 hour, a major hurdle to cross over for both the athletes for

getting No. 1 position.

India is one of the lowest soft drink consuming countries in the world. According to per

capita in India is 5 bottles per year, while highest consumption in USA of 800 bottles per

year. Lower, Lower middle & upper middle class consume 91% of soft drink market.

The consumption diagram graph of soft drink has never, decrease. If once, it has

increased. It is increasing at 24 – 25% per year. Even in India the market is constantly

growing in 1993, the people of India consume only 0.7 lt/head, while in 1995 it

increased from 0.7 to 0.93 lt/head, in 1997 it was 1.14 lt/head & in 2001 it was 1.62

lt/head.

The Company Profile of Pepsi

CEO PepsiCo

INDRA NOOYI

Chairman of the board and Chief Executive officer

ABOUT THE PEPSICO CEO

Nooyi joined PepsiCo in 1994 and was named president and CFO in 2001. Nooyi has

directed the company's global strategy for more than a decade and led PepsiCo's

restructuring, including the 1997 divestiture of its restaurants into Tricon, now known as

Yum Brands. Nooyi also took the lead in the acquisition of Tropicana in 1998, and

merger with Quaker Oats Company, which also brought Gatorade to PepsiCo. In 2007

she became the fifth CEO in PepsiCo's 44-year history.

Business officials rave at her ability to drive deep and hard while maintaining a sense of

heart and fun. According to Business Week, since she started as CFO in 2000[2], the

company's annual revenues have risen 72%, while net profit more than doubled, to $5.6

dollars billion in 2006.

Nooyi was named on Wall Street Journal's list of 50 women to watch in 2007 and 2008,

and was listed among Time's 100 Most Influential People in The World in 2007 and

2008. Forbes named her the #3 most powerful women in 2008. While CEO of PepsiCo

in 2008, Indra Nooyi earned a total compensation of $14,917,701, which included a

base salary of $1,300,000, a cash bonus of $2,600,000, stocks granted of $6,428,538,

and options granted of $4,382,569.

AROUND THE WORLD

PepsiCo is a world leader in convenient snacks, foods and beverages with revenues of

more than $43 billion and over 198,000 employees. PepsiCo, Inc. is founded by

Donald M. Kendall, President and Chief Executive Officer of Pepsi-Cola and Herman

W. Lay, Chairman and Chief Executive Officer of Frito-Lay, through the merger of the

two companies. Pepsi-Cola was created in the late 1890s by Caleb Bradham, a New

Bern, N.C. pharmacist. Frito-Lay, Inc. was formed by the 1961 merger of the Frito

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

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

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

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

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

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

http://en.wikipedia.org/wiki/Yum!_Brands

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

Company, founded by Elmer Doolin in 1932, and the H. W. Lay Company, founded by

Herman W.Lay, also in 1932. Herman Lay is chairman of the Board of Directors of the

new company; Donald M. Kendall is president and chief executive officer. The new

company reports sales of $510 million and has 19,000 employees. Pepsi-Cola

Company - Pepsi-Cola (formulated in 1898), Diet Pepsi (1964) and Mountain Dew

(introduced by Tip Corporation in 1948).Frito-Lay, Inc. - Fritos brand corn chips

(created by Elmer Doolin in 1932), Lay's brand potato chips (created by Herman W.

Lay in 1938), Cheetos brand cheese flavored snacks (1948), Ruffles brand potato

chips (1958) and Rold Gold brand pretzels (acquired 1961).Mountain Dew launches its

first campaign "Yahoo Mountain Dew ... it'll tickle your innards."

PEPSI PARTNERS

PepsiCo also has formed partnerships with several brands it does not own, in order to

distribute these or market them with its own brands.

Frappuccino, Starbucks Double Shot, Starbucks Iced Coffee, Mandarin (license), D&G

(license), Lipton Brisk, Lipton Original Iced Tea, Lipton Iced Tea, Ben & Jerry's

Milkshakes, Dole juices & juice drinks (license), Sunny Delight (produced by PepsiCo

for Sunny Delight Beverages)

POSITION OF PEPSI IN INDIA

Total soft drink segment is growing at the rate of 10% per year still International

standard area considered the per capita consumption of the Indian Soft drink industry is

rock bottom, less than even our neighbour Pakistan and Bangladesh where it is four

times more than the Indian consumption rate.PepsiCo established its business

operations in India in the year 1989 It is now the 4th largest consumer products

company in India PepsiCo has invested more than USD 1 billion in India since its

establishment. PepsiCo has a diverse range of products from Tasty Treats to Healthy

Eats It provides direct and indirect employment to 150,000 people in India It has 41

bottling plants in India and fast catching up to Coke, of which 13 are company owned

and 28 are franchisee owned It has 3 state-of-the-art food plants in Punjab,

Maharashtra and West Bengal

BRANDS OF PEPSI IN INDIA

PEPSI:

Pepsi is a hundred year old brand loved by over 200 million people worldwide. The

largest single selling soft drink brand in India is the ubiquitous 'socialiser' at every

occasion 1886, United States of America. Caleb Bradman, the man with a plan, got on to

formulate a blockbuster digestive drink and decided to call it Brad’s drink. It was this

doctor’s potion that was to become Pepsi Cola in 1898, and eventually, Pepsi in 1903.

Pepsi has always played on the front foot and since its inception has come out with

revolutionary concepts like Diet, 2L bottles, recyclable plastic cola bottles and the

enviable My Can.

7 UP:

7UP, the refreshing clear drink with natural lemon and lime flavour was created in

1929. 7UP was launched in India in 1990 and its international mascot Fido Dido was

used for advertising in 1992 to position the brand as a cool drink for youngsters. Fido

became an instant hit with his trendy look, laid back attitude and refreshing take on life.

During the brand’s early years in India, 7UP gained market leader status in the lemon

lime category by being one of the first to be nationally distributed as well as being

marketed as a healthier alternative to other soft drinks

TROPICANA:

Tropicana was founded in Bradenton, Florida, USA, in 1947. And is now enjoyed almost

everywhere in the world. Carefully nurtured for over 50 years, it has matured into one of

the most respected beverage brands. Today it is the World's no. 1 juice brand and is

available in 63 countries. Since 1998, it has been owned by PepsiCo, Inc. Tropicana

Premium Gold was re-launched as Tropicana 100% in year 2008

SLICE:

Slice was launched in India in 1993 as a refreshing mango drink and quickly went on to

become a leading player in the category.

In 2008, Slice was relaunched with a 'winning' product formulation which made the

consumers fall in love with its taste. With refreshed pack graphics and clutter breaking

advertising, Slice has driven strong appeal within the category.

NIMBOOZ:

Nimbooz was launched in India this year on the 28th of February 2009. Latest addition

to portfolio of Pepsi Beverages Nimbooz is a great tasting product which has capitalized

on the existing familiarity & behavior of high frequency consumption of unpackaged /

Home made nimbu pani. It has been true to its Asli Indian Identity by owning and

appropriating nimbu Pani Codes such as the Matka (Earthen Pot) and Squeezer.

MOUNTIAN DEW:

The main formula of Mountain Dew was invented in Virginia, named and first marketed

in Johnson City, Tennessee and Knoxville, Tennessee in 1948. In India, Mountain Dew

set the soft drink category ablaze in 2003 with their iconic launch campaign “Cheetah

Bhi Peeta Hai”. 2007, the brand was re-launched with a completely new, punchier

formulation with communication that aimed at forging a strong emotional connect with

our audience. Thus came about the "Darr Ke Aage Jeet Hai" campaign, which

acknowledged that fear was a very real and relevant aspect of the adventurous world

and Mountain Dew, as a brand wanted to encourage all youth in their moment of fear, to

believe in themselves and just go for it because beyond fear, lies victory.

MIRINDA:

Now when we think Mirinda, we think orange. But this soft drink brand has many other

fruit flavors; Mirinda Lemon was launched in 1998 & other flavors like Apple & Batberry

that were launched as in & outs.

Mirinda has always been about a great orange taste, which is now synonymous with the

brand. These were communicated through our great campaigns; the memorable Mirinda

Men to Taste Aisa Chaye Character Fisla Jaye.

AQUAFINA:

Aquafina was first launched in USA in the year 1994 and with its unique purification

system and great taste; Aquafina soon became the best selling brand in the country.

In India, Aquafina’s journey began with the Bombay launch in 1999 and it was rolled out

nationally by the year 2000. On the strength of its brand appeal and distribution,

Aquafina has become one of India's leading brands of bottled water in a relatively short

span.

Market Share in India

The two global majors Pepsi & Coca – Cola dominate the soft drink industry market.

Coca – Cola, which had winded up its business from India during the introduction of

IERA regime re-entered in India after 16 years letter in 1993. Coca – Cola has acquired

a major soft drink market by buying out local brands like Thums up, Limca & Gold Spot

from Parle Beverages. Pepsi although started a couple of years before Coca – Cola in

1991, right now it has lower market share. It has brought over Mumbai based Dukes

range of soft drinks. Both Cola manufactures Pepsi & Coca – Cola come up with their

own market share & claim to have claimed to increase their share

Company Profile of Coke

CEO Coke

DOUGLASN DAFT

Chairman of the board and Chief Executive officer

ABOUT THE COCA COLA COMPANY CEO

Douglas N. Daft was elected chairman board of director and chief executive officer of

the Coca-Cola company on Feb. 17, 2000 Mr. Daft is the 11 th chairman of the board in

the history of company.

Mr. Daft 60 joined the company in 1969 as planning officer in Sydney, Australia office.

He held of increasing responsibility throughout Asia and in 1982 was named vice

president of Coca-Cola Far East Ltd.

In Dec.1988 Mr. Daft was named president of north pacific division and president of

Coca-Cola (Japan) co. Ltd. He moved the company’s Atlanta headquarters.

In 1991 to assume the responsibility of president of the pacific group and in 1991 his

responsibility was expended to include the com. Africa Group and Schweppes

Beverage Division as well as the middle and Far East Group.

Mr. Daft was elected president and Chief operating officer of the Coca-Cola com. In Dec

99’.

He serves on the board of Sun Trust Banks, the boys and girls club of America Catalyst

the Cerge-Ei foundation (Centre for economic Research and Graduate Education-

Economic Institute ) in the Czech Republic , the Lauder Institute for Management and

International Studies at the University of Pennsylvania, the Prince of Wales International

Business Leader Forum , the Grocery Manufactures of America The British American

Chamber of Commerce ,the G100,the Woodruff Arts Centre, the Commerce Club, and

the McGraw-Hill Companies. Mr. Daft is a trustee of Emory University, the American

Assembly and the Centre for Strategic &International Studies. He is also a member of

the Trilateral Commission, the Business Council and The Business Round Table.

AROUND THE WORLD

Although Coca-Cola was first created in the United State it quickly became popular

wherever it went. Their first International bottling plants opened in 1906 in Canada,

Cuba and Panama soon followed by many more bottling plants in different

countries .Today we produce more than 300 brands in 200 courtiers and more than

70% of their income comes from outside the U.S, but the real reason they are truly

global company is that our product meet the varied taste preferences of consumer

everywhere.

COKE PARTNERS

The Coca-Cola Company works with a wide variety of organization to support health,

fitness and good nutrition.

The Coalition for Healthy and Active America (CHAA) CHAA was formed in 2003 by

concerned organization and national leader to educate parents, children, schools and

communities about the critical roles physical activity and nutrition education play in

reversing the alarming trends of childhood obesity. As a non profit National grassroots

coalition, CHAA is a various advocate for developing health and active lifestyle for

America’s youth. CHAA is committed to working with schools to rededicate time for

physical fitness giving parents the freedom to their children make their own nutritional

choice, building school business model relationship that benefit our families by support

healthy and active lifestyle and finding solution to the childhood obesity that are both

responsible and realistic American Council for fitness and nutrition. The American

Council for Fitness and Nutrition (ACFN) is a group of food, beverage and consumer

products companies, non profit organization and trade association working together to

improve the health of Americans, particularly youth by encouraging a healthy balance

between fitness and nutrition. The cornerstone of all ACFN initiative is the idea that

lasting solution to the nation’s obesity problem must be based on sound science and

behavioural research. Such policies are likely to help parents and their children develop

eating and exercise habits that lead to a healthier life.

Grocery Manufacture of America The Grocery Manufacture of America (GMA)

represents the food ,beverage and consumer products industry on key issue that affect

the ability of brand manufacture to market their products and deliver superior value to

the consumer.

International Food Information Council (IFIC) Foundation the IFIC Foundation is a

public education foundation disseminating sound, science-based information on food

safety nutrition and health. International Life Science Institute (ILSI) is a non profit

worldwide foundation that seeks to improve the well being of the general public through

the pursuit of balance science. Its goal to further to understanding of scientific issue

relating to nutrition food safety toxicology risk assessment and industry.Kidnetic.com is

a fun interactive website that emphasize healthy achieved through s balance of physical

activity and responsibility eating habits The website gives young people and their

parents the tools and idea to help change habits and plant the seeds for healthy families

tomorrow.Kidnetic.com is a program of the International Food Information Council

(IFIC) Foundation.

National Association for Sport and Education Association for sport and Physical

Education seeks to enhance knowledge and professional practice in sport and physical

activity through scientific study and dissemination of research based and experimental

knowledge to members and public.

National Soft Drink Association (NSDA) is the trade association for America Soft

Drink Industry serving the pup

THE PRESENT POSITION OF COKE IN INDIA

Coke is a house hold name and in the lips of every one. In present time every person

knows the name of Coca Cola since India is one of the biggest markets for the Soft

Drink Company and sultry summer from March to the end of October and a huge

population has immensely helped in the sales of coke in India.

Last year the market share of Coca-Cola was not specific. In this year company’s top

management adopted new policy and increased the rate of all brands of Coke. By this

decision top management determined the rate of 300ml Rs.15.And the brand of 200ml

determine the rate of this brand Rs.10 only .By which medium size family can buy and

enjoy Coke. By this decision company marketing share has been increasing. In present

time Coke captured approximate 57.8% market share. Now Coke has made a huge shift

away from the distributors serving the retailers according to the type of service. Due to

this Coke has gained appropriate position in the minds of the retailer .It has now

emerged as the winner and has a good image in the market Cola have thus gained a

status symbol mainly attributed to its standard and well penetrated, advertising and

extensive distribution network.

Total soft drink segment is growing at the rate of 10% per year still International

standard area considered the per capita consumption of these serving in rock bottom,

less than even our neighbour Pakistan and Bangladesh where it is four more as much.

So with kind of a market potential coke entered in India in 1991. The government in

Pune in 1992 allowed the plant to establish its first bottling plant. Now the company has

grown to about 59 bottling plants throughout India.

COKE BRANDS IN INDIA ORIGIN

COCA-COLA:

Developed in brass products in 1886, coca-cola is the most recognised and admired

trademark around the globe. Not to mention the best selling soft drink in the world.

SPRITE:

In 1961, a citrus flavoured drink made its U.S. debut, using “sprite boy” as inspiration for

the name. This elf with silver hair and a big smile was used in 1940s advertising for

coca-cola. Sprite is now the fastest growing major soft drink in the U.S., and the world’s

most popular lemon-lime soft drink. But In India It Is not of citrus in nature and is pure

caffeinated carbonated water.

FANTA:

The name “FANTA” was first registered as a trademark in Germany in 1941, when it

was used for a few years for the soft drink created from available material and flavours.

The name was then revived in 1955 in Naples, Italy, when it was used for the “FANTA”

orange drink we know today. It is now the trademark name for a line of flavoured drink

sold around the world.

DIET COKE:

The extension of the coca-cola name begun in 1982 with the introduction of diet coke

(also called coca-cola light in some countries). Diet coke quickly becomes the number-

one selling low-calories soft drink in the world.

VANILA COKE:

It is an ice-cream in taste launched in 2004. But it failed miserably in the Indian Markets

LIMCA:

This is thirst—quenching beverages features a fresh and light lemon-lime taste and a

light hearted attitude. The Limca brand was introduced in 1971 and acquired by the

coca-cola company in 1993.

MINUTE MADE PULPY ORANGE:

This is a one of a kind natural orange drink introduced by Coke. It does contain natural

pulp but the juice inside is manufactured the same way as all the other drinks are

manufactured in the coke brand.

MAAZA:

Maaza launched in 1984 and acquired by the coca-cola company in 1993, is a non-

carbonated mango soft drink with a rich, juicy natural mango taste.

THUMPS UP:

In 1993, the coca-cola company acquired this brand, which was originally introduced in

1977. Its strong and fizzy taste makes it unique carbonated Indian cola. It has the

highest market share in the Indian Soft drink industry.

KINLEY WATER:

This is the thirst quenching beverages features fresh the water with the saturated

oxygen level.

GEORGIA:

This was first introduced in 2004 it is hot tea and coffee products by Coke it is mostly

sold in restaurants and not in the local shops it is being sold both in the hot and the cold

beverages format.

Market Share (in %) 2012

Brand Name Market Share (org figure) Market Share (IMRB)

Pepsi 35.6%

Coca – Cola 57.80%

Other Brands 6.6%

Source: Economic Times

CHAP :8 SWOT ANALYSIS

7. Comparative Analysis of Coke and Pepsi

The soft drink market all over the world has been witnessing to neck to neck battle

between the two major players, coca-cola and he Pepsi since the very beginning. The

thirst quenchers are trying to have the major chunk of the pie of carbonated soft drink

market. Both the player is spending their energies in building capacity, infrastructure,

promotional activities etc.

Coca-cola being 11 years older than Pepsi has dominated the scene in most of the soft

drink markets in the world and enjoying leadership in terms of market share. But the

coca-cola people are finding it hard to keep away Pepsi, which has been narrowing the

gaps regularly. the two are posing threats to each other in every nook and corner of the

world wide coca-cola has been earning most of its bread and butter through beverages

sales, Pepsi has multi products portfolio with some portion from the same business.

The two warriors are face to face once again herein India with different strategies and

tactics to attack the rivals. Coca-cola is focussing upon the joint venture with the

existing bottlers (Fobo) franchise owned bottling operations to enhance its control on

manufacturing and marketing of its products range and attain quality standards of its

class. Countering its Pepsi has taken the battle of its own hands by floating as

investment of $ 95 billion to set Pepsi Company. India holdings, as subsidiaries for

(Cobo) company owned bottling operations. Both companies are following different

paths to reach the same destination i.e. to grab a bigger portion of aerated soft drink

market. Both consider India as a Hugh potential market, as per capita consumption here

is mere 3 serving annually against the world average of 80. Therefore, they are putting

there best efforts to woo the Indian consumer who has to work for 1.5 hours to buy a

bottle of soft drink. In comparison to international norms minutes, a major hurdle to

cross over for the athletes for getting no. 1 position comparison to the inter. Coca-cola is

well set with its 53 bottling sites through out the country giving it an edge over

competition by processing a well-built bottling and distribution set up. On the other

hand, Pepsi, with two more years in India, has been able to set as image of a winner in

India and has been able to get the pulse of the Indian soft drink market. The soft drink

giants are leaving on stone unturned and her for the long terms.

Coca-cola has been penetrating the market through its worldwide products range with a

determination to change consumption pattern of soft drink in India. Firstly, they

upgraded the whole industry by introduction 300ml bottles, which in turn had given the

industry a booming growth of 20% as compared to the earlier 5%. They meant to

develop a coca culture here and are working on a strategy to offer soft drink in every

possible package. In Coca-Cola camp, the idea of competition has not come from

Pepsi. But from the other beverages such as tea, coffee, nimbus, pani, water etc. Coke

has used a large sum on the visibility of its red and white logo. They have been going

along with aggressive marketing by enrolling Amir Khan, Akshay Kumar and their

advertisement to endorse their brand, the role models of its targeted consumer the

teenagers

Pepsi is quite aggressive in its approach to Indian consumer. They are desperately

working on the strategy to be the winner in the hot cola war between two big barons.

According to Pepsi philosophy, it is the madness that encourages executive to think, to

conjure up those creative tactics to knock the fizz out of their competition.. Pepsi have

increased the fizz in the market place by introducing the dispensers called fountain

Pepsi and have been enjoying a lead over its rival there. Coca-cola on the other hand,

has been working in the saying slow and steady wins the race’s side by retailing to

every more of its competitors. They have procured the shield of thumps up with a

handsome market share in Indian soft drink market. Countering commercial that used

two chimpanzees to rock a snoop at coke, thumps up with the ad line, don’t be bender,

and taste the thunder Also. Thumps up has been positioned now them very near to that

young image of Pepsi and giving it a through time.

These cool merchants have put everything on fire. Its coke gets the status of the official

drink of the wills. World cup, Pepsi blushes as nothing official about it. As thumps up

projected as ‘saare jahan se achcha’, pepsi was passionate enough with ‘freedom to be’

and now the “yeh dil maange more” when thumps up came with thunder blast, the

offered “Pepsi stuff card”. If red is meant for coke, Pepsi chosen to be blue.

“In the U.S., it’s a closer race between coke and Pepsi”, said Bonnie Herzog, an

industry analyst with smith Barney. “But when you take a look outside the U.S.”. I think

coca-cola has the major lead.

Indeed, 75% of Coke’s profits now come from the foreign markets it dominates. While

back home the slugfest has gone on for decades.

“I think makes us all better”, said Pepsi vice president of marketing; Katie Lacey. It’s

alone thing about working in a very competitive category. You absolutely are on your

toes. We do not let it dictate how are or think everyday. We are focused on how we are

going to grow our brands.

With public opinion split, there’s is no. of problem for both coke and Pepsi. Volumes of

carbonated soft drink I north America is growing at less than one present a year.

Meanwhile, sports drinks like Gatorade are growing at 15% year. And bottled water is

expending by 26 permanent annually. In a saturated soft drink market; water is where

the growth and money are, according to Herzog. For now, Pepsi’s Aquafina is beating

coke’s Dasani in the water wars.

It’s just the latest front in a battle between hundreds of Coke and Pepsi brands. Diet

coke vs diet pepsi, sprite vs. mountain dew, nestle vs. Lipton Tropicana vs. minute

maid. And the list goes on.

But for Pepsi- it’s not all about drinks. Some 60% of its profits come from its snack

business. From Fritos to lays to crack jack and Tostitos, Pepsi has virtual monopoly,

with no competition with coca-cola.

“They are going after the younger consumer who purchase a single serve products, at a

convenience store 9-13”, said Todd Stender, who fellows the company at Crowell

Weedon and co.”, and that’s really where the profits are”.Cokes, meanwhile, just scored

a big coup by winning the soft drink business at subway, a fast food chain now bigger

that McDonald’s, that had previously served only Pepsi.

Market Share of Indian Beverage Companies [Market Share (in %) 2010]

Market Share

PepsiCo India, 35.60%

Coca-Cola India , 57.80%

Other Indian Companies,

6.60%

Coca-Cola India

PepsiCo India

Other Indian Companies

Source: Economic Times, org figure

The Pi Chart Shows That Coke has a major lead in India Capturing the huge Chunk of

the market share while Pepsi on the other hand has very less Market share compared

to coke but it is growing.

Table 6.1: Market Share of the Respective Companies [Market Share (in %) 2010]

PepsiCo (2009-10) Coca-Cola (2009-10)

Pepsi – 13.1 % Coca – Cola – 8.2%

7 UP – 5.8% Thums Up – 16.4%

Mirinda Lemon – 0.4% Sprite – 12.2 %

Mirinda Orange – 8.9% Limca – 10.9%

Mountain Dew – 5.8% Fanta – 10%

The above table shows the dominance of Coca-Cola in India. Coke had used a good

strategy in buying of established Indian drinks Like Thumbs-up and Limca from Parle

Agro group of companies which now consist of 26% of the market share and thus

grabbing a huge piece of the market. Pepsi on the other hand is mostly surviving on its

Pepsi cola brand of drinks which consist of 13.1% which has the second largest market

share after Thumbs-up. Pepsi has a reason to smile as the 7-up and mountain dew

brands are growing fast and capturing the market share slowly but steadily.

CHAP :8 SWOT ANALYSIS

8. Swot Analysis

8.1 SWOT OF COKE

STRENGTH:

1. Coca-cola potential brands position in the market.

2. Good quality and innovation of product for long term customer relationship.

3. Good advertising campaign, and brand ambassador.

4. Advertisement campaign more effective and change of punch line make an Emotional

touch with customer and retail.

5. High investment in research and development.

6. Coca-cola has a good market share.

7. Segment of coke product to every age group.

WEAKNESS:

1. Lack availability 1 it & 1.5 it product pack.

2. Lack supply of Kinley water in the market.

3. Retailers are unhappy with schemes at any time.

OPPORTUNITY:

1. Coke is able to grab large market share as the Indian consumer base is growing.

2. More monopoly counters of coke brand.

3. To improve market mix (product, price, promotion, place)

4. To increase the sale of Kinley.

THREATS:

1. Pepsi is the major competitors.

2. Pepsi has captured major market of 500ml, 1.5 & 2 it.

3. Retailers divert to Pepsi because they are getting good schemes and SGA signage.

8.2 SWOT OF PEPSI

STRENGTH:

1. Pepsi has a good brand image.

2. Good quality and innovation of product for long term customer relationship.

3. High investment in research and development.

4. Segment of Pepsi product to every age group.

WEAKNESS:

1. Lack of proper distribution in many areas.

2. Lack Of retailers in the market.

3. No of distributors enough to retailers.

OPPORTUNITY:

1. Pepsi has a growing market share and can capture new consumers as the Indian middle

class is growing

2. To improve market mix (product, price, promotion, place)

3. To increase the no of retailers who sell the Pepsi brand

4. To capture the growing clout of mountain dew and to hold on to its new followers

THREATS:

1. Coke is the major competitor.

2. The Brand of Thumbs-up and Sprite have a major fan following in India which belongs to

coke

3. Coke has higher retailers compared to Pepsi meaning increasing availability of coke

CH: 9

FIVE FORCE ANALYSIS

9. Five Force Analysis of Aerated Industry

9.1 Threat of Competitors

The growth of Punjab Agro is also another threat for coke as it is a strong locale player

and created great brands like Thumbs-up and Limca due to which the market share of

coke is high after buying these brands. It has a growing presence in the fresh juice

market.

The local Drinks like the local soda shops the nimbu pani walas and the fresh juice

sellers still have a good presence in the local market and are also considered to be a

better option by the people specially during summers

9.2 Threat of Substitutes

The major substitute to the aerated industry is the influx of fresh juices where people are

changing from the fizzed juice to the fresh juices.

The other is the growth of the concentrated juice market like Rasna and Tang have a

considerable market share in India. People of India like to make easy things and so its

better to make 7 to 12 glasses of Rasna which is a cheaper option than compared to

spending more money in buying Fizzed Juices

9.3 Threat of new Entrants

The major threat in the rise of the Indian aerated industry is the disease called Diabetes

where there are increasing number of People who are acquiring this diseases thus

people are slowly decreasing the consumption of fizzed juices

There are juices which being fresh and having natural sugar are slowly capturing the

market of fizzed juices

The number of health conscious people are increasing day by day who are decreasing

the consumption of fizzed juices and turning towards fresh juices which is obviously a

healthy option

9.4 Bargaining Power of Buyers

The buyers over here are retailers and the organized juice market has only few

companies to choose from and 93% of the market shares are captured by the Giants

Coke and Pepsis so the retailers are stuck with the giants and have less bargaining

power.

The people also prefer juices from the giants as of now so the retailers would obviously

sell the product with the popular demand so they have no choice but to sell the product

of the giants. So the bargaining power of buyers is extremely low in this case.

9.5 Bargaining power of Suppliers

Here the suppliers of the concentrate are the manufactures them selves the main supply

channel is the government licence for using underground water to mix with the juice

concentrate

The next supply is the sugar used in the concentrate by the manufactures from the

farmers

The government has a good bargaining power over the companies thus if the licence is

revoked then the company has no supply of water. The same happened with coke; coke

was forced to give out its secret and government cut its water supply so coke left India in

1977 and returned during the period of liberalization in 1993

CH: 10

Area – Sarojini Nagar,AAshiyana,LDA Colony

Visi Index = Pepsi Visi Coke Visi

=44/39

=1.128

1.12820512820513

4439

70

1.12820512820513

VISI INDEX

Observations:

1. Visi – Pepsi having a better position in the given area.

62.85% shops are having Pepsi visi where 55.71% are having ccx visi .

Complains about refrigerators.

Relatively Low presence of Coke.

Better after installation services from coke.

At least 37% shops don’t have visi.

Cover the untapped market.

Exclusive Index = Only Pepsi Only Coke

= 5/3

=1.66

70 1.66666666666667

5 3

70

1.66666666666667

EXCLUSIVE INDEX

Observations:

2. Exclusive Index- Pepsi in this index is also dominating in comparison to coke. Pepsico is having more exclusive selling outlets.

Total Index = Total Pepsi Shops Total Coke Shops

= 67/65

=1.030

pepsi coke total shops index

1 2 3 41 2 3 41

23

4

6765

70

1.03076923076923

TOTAL INDEX

Observations:

3. Total Index:

Out of 70 shops surveyed Pepsi has covered 67 shops while coke has only 65 counters.Pepsico has covered almost 96% of the market.Almost equal presence of Coke.

Area of Opportunity:

Visi – Almost 35% shops are still working with ice boxes or self purchased refridgrators, if this can be covered we can have a competitive edge over coke.

There are many shops where sale of soft drinks can create a good business but they are not interested, if we can convert them by explaining profits and better services in the area, we can create more business.

Personal suggestions:

Increased supply of Mountain Dew can give a competitive advantage.

After installation services should be improved.

On time delivery can create positive difference.

Area – Narhi,Daalibagh,Aliganj


=108/107

=1.009


108 107

150

1.00934579439252

VIZI INDEX

Observations:

In the above shown chart we can see that in this area pepsi and coke, both are having almost same mass of market in the context of visi but still the market has more possibilities.

Visi index is just more than 1 can be called satisfactory. Exclusive Index = Only Pepsi

Only Coke

= 38/23

=1.652

38 23 150 1.65217391304348

3823

150

1.65217391304348

EXCLUSIVE INDEX

Observations:

The exclusive index in this area is good as we have 38 exclusive counters in the comparison of coke’s 23 counters.

As we can see in the chart that market is having potential and we can improve our figures by improving our services, we can create a lot more of exclusive counters.


= 127/112

=1.133

127 112 150 1.13392857142857

127112

150

1.13392857142857

TOTAL INDEX

Observations:

The total index of this area is also giving positive results. We have 127 total counters where coke has only 112. But as we can see that total shops surveyed are 150 so here also we

can increase our counters.


Coke and Pepsi having neck to neck competition, its necessary to be always on toes as just one single moment of relaxation can pave way for the competitor to gain place in the market. So continuous measures should be taken to maintain this good position. Retailers

should be always provided with the facilities and the services they need. Frequent visits should be made to the shops to check whether the cooler is working properly or nor because this is an area where lots of shops are found and if you are not able to fulfill there need of chilled softdrink then they have a choice of switching over to the other brand and in this the retailer even can’t do anything. So visi should be installed in almost all the shops with good schemes given to them.


For maintaining this position in the market, I would suggest that the areas being the few good areas and so here some promotion activities for the youngsters should be done in which they can participate and by this they can promote their brand. Keep on adding different flavors to the drink as per the requirement of the people would serve the purpose. The packaging can be changed from time to time. Hoardings at the public places are good techniques.

The services part need to be taken care of. Customers being the king, if they are not satisfied then no company can flourish, and so customer’s needs should be taken care of. Time to time surveys should be done so as to know where we are lacking behind and instant changes should be made for the betterment of the company.

Area – Campwell Road,Mohan Road


=38/36 =1.055


38 36

50

1.05555555555556

VIZI INDEX

Observations:

In this area total shops surveyed were 50 and we have covered 38 with our cooling machines which is definitely a good situation though coke has also 36 machines in the market it means there is a really tough competition.

Exclusive Index = Only Pepsi

Only Coke

= 12/1

=12


12

1

50

12

EXCLUSIVE INDEX

Observations:

In the case of exclusive index of this area we are again in the batter position than coke but again we can do more as the market still has capabilities


= 50/38

=1.315


50

38

50

1.31578947368421

TOTAL INDEX

Observations:

In the case of total index we are doing pretty good in this area as each and every shop surveyed was selling pepsico products.


Market still has many possibilities and caliber so a better composition of pre and post sales services and same in the case of visi installation can make a difference in gains.

In this area coke has a weaker distribution network so we can use their weakness as our opportunity.

Both the competitors in this area having issues regarding proper time and amount of delievery .So as soon as we can solve these issues they will start to act as an opportunity for us.


My personal suggestions for this area also will remain same as in previous areas accept we can promote ice boxes more in this area because in this area there are many small “Paan Walas’ and they are almost untapped.

Area – Ganeshganj, Maulviganj


=37/33

=1.121

37 33 37 1.12121212121212

3733

37

1.12121212121212

VIZI INDEX

Observations:

Visi index of this area showing a really good picture as we have covered almost whole market with our cooling machines.

Exclusive Index = Only Pepsi Only Coke

= 04/01

=4


1 2 3 412

34

12

34

41

37

4

EXCLUSIVE INDEX

Observations:

Exclusive index is good but in reality we have really few exclusive shops in the area that means we are in the better condition than our competitor but we can improve this a lot.


= 37/33

=1.121

37 33 37 1.12121212100001

3733

37

1.12121212100001

TOTAL INDEX

Observations:

But in this case total index is showing real gud picture as we can see that we have our supply in each and every shop surveyed.


Just like other area in this area also there are many distribution channel related problems as coming up and these problems can be proved as opportunities if we can solve them before our competitors.Apart from this we can see that the market is also increasing day by day in this area as the customer needs are bigger than the market.

So we can say that the market is soon going to give us many other opportunities.


My suggestion would be just to keep up the good work. The distributors are doing a good job there and there are no problems regarding the visi.

Pepsico Project

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