4Ps Analysis of Nestle and Cadbury Dairy Milk pvt. Ltd
Pvt.Ltd
MASTER OF BUSINESS ADMINISTRATION
to PUNJAB TECHNICAL UNIVERCITY Submitted byShailendra
kumar sharma Regd.no. DBS/09-11/W-083/B And Sandeep kumar Regd.no. DBS/09-11/W-081/B Submitted toMs. PRITTY SINGH (Faculty of marketing management)
dbs delhibusinessschool creating corporate connoisseurs
The comparison of the 4 Ps of the pepsi and cocacola pvt. Ltd
Objective of the study In this project, our main focus was to analyze Beverage taking into consideration the 4 P¶s of the marketing mix. To analyze various product attributes of Beverage its management in the current scenario. To study the entire distribution mix of the product line. To critically comment on the pricing strategy adopted by the company. Lastly our study will also focus on the various promotional aspect of the brand in Beverage and also promotional mix of the product line.
INTRODUCTION Coca-cola HISTORY Type: Public
Gr iggs Candler Founded: 1892 by Asa Griggs Headquarters : Atlanta, Georgia, USA Industry: Beverage Products Beverages: Web site: www.cocacola .com Origin of the product:
Dr. John Stith Pemberton for the first time produced the syrup for Coca-Cola on May 8, 188 6 The history of the Beverages industry started when Atlanta, Georgia druggist John Stith Pemberton invented coca wine called Pemberton¶s French Wine Coca in 1884.
He was inspired by the formidable success of French Angelo Mariani¶s coca wine, Vin Mariani to compete with the many patent medicines and cure - all elixirs of that time. His company recommended reco mmended it for the relief of hangovers headaches, menstrual pains, and a host of o f other problems. One warm summer day Pemberto n took some syrup down to will is venerable at Jacob¶s Drug Store in Atlanta. An ounce of o f the mixture was put into a glass, which was then filled with water and ice, creating the WORLD¶S first Coca-Cola Coca-Co la
Origin of the company: The following year, when Atlanta and Fulton County passed Prohibition legislation, Pemberton began to develop a non-alcoholic version of the French Wine Coca. He named it Coca-Cola, Co ca-Cola, because it included the stimulant coca leaves from South America and was flavoured using kola nuts, a source of caffeine. Pemberton ran the first first advertisement for the beverage on May 29 that year in the Atlanta Journal. In 1887, while suffering from an o ngoing addiction to morphine, Pemberton sold a stake in his company to Asa Griggs Candler, who incorporated it as the Coca Cola Corporation in 1888. In the same year, Pemberton Pe mberton sold the rights a second time to three t hree more businessmen: J.C. Mayfield, A.O. Murphy, and E.H. Bloodworth. Meanwhile, Pemberton¶s alcoholic son Charley Pe mberton began selling his own version of the product. Three versions of Coca-Cola Coca-Co la ² sold by three separate businesses ² were on t he market. When the United States St ates entered World War II, The Coca-Cola Company began providing free drinks for soldiers of the United States Army. The United St ates Army permitted Coca-Cola employees to enter the front lines as ³Technical Officers´ where they operated Coke¶s Co ke¶s system of providing refreshments for soldiers Coca-Cola set up bottling plants in several locat ions overseas to assure the drink¶s availability to soldiers, setting the stage for the co mpany¶s post-war overseas expansion. The popularity of the drink d rink exploded as American soldiers returned home from the war with a taste for the drink.
Before the United States entered World War II, the difficulty of shipping Coca-Cola concentrate to Germany and its occupied states led to the creation of a new drink by a Coca-Cola employee, Fanta. Fanta¶s origins date back to World War II when Max Keith, who managed Coca-Co la¶s operations in Germany during the war, ran out of the ingredients for Coke, which could be supplied only from the United States. St ates. Keith resorted to producing a different soft drink, Fanta, which proved to be a hit, and when Coke took over again after the war, it adopted the Fanta Fa nta brand as well. The German Fanta K/are Zitrone (³Clear Lemon Fanta´) variety became Sprite, another of the company¶s bestsellers In the 1930s, Robert W. Woodruff became president of the Coca-Cola Co mpany, presiding over the drink and its destiny till t ill his death in 1985. Although he eve ntually stepped down from his post due to stress, he retained control co ntrol over the company despite holding ho lding positions with an ostensibly low profile. The headquarters of Coca-Cola, now listed by fortune as one of the 50 top corporations in the United States, is still in Atlanta, Georgia. The actua l sale and distribution of that magic elixir which, needless to say, on longer contains cocaine - is handled largely by a number of independent bottlers. These bottlers buy syrup, mix it with carbonated water, and distribute it to retailers in their area. The number of reta ilers who sell Coke to the public almost exceeds counting.
PEPSI Type: Public Founded: 1903 by DCC
BROADHAM Headquarters : New York, USA Industry: Food & Beverage Products: Beverages,Snacks Origin of the product:
It starts with a small drug store in North Carolina. T his little little store belonged to young chemist by the name of DCC BROADHAM. He invented a drink that the customers called BROAD¶S drink. In 1903, Bradham got its drink registered formally by the name of PEPS I COLA
.
Origin of the company: He set his own company and kept its sales improving gradually. By 1909, more then 250 bottlers in different American states had been allowed to sell under the t he PEPSI COLA license. PEPSI COLA was first sold in the standard size of 6.5 ounces. In 1932 PEPSI COLA took courage enough to introduce a bottle of 12 ounces. In 1950 the PEPSI COLA¶S formula had been changed by reducing its sweetness and calories and a new advertising campaign Refresh without filling had been launched e ffectively. ffectively. Under the t he supervision supervision of o f the diligent sales staff and the Marketing experts, PEPSI COLA began setting sett ing new records of eminence. At 30 plants per year, new plants were established all across the globe. A new attractively designed bottle bott le had been introduced in 1957 in place for the 20 years old bottle, and the product line had been enhanced to introduce the new flavors of TEAM TE AM & MIRINDA. PEPSI COLA today is available to more than a billion people in 153 d ifferent countries which include the central independent states and China.
MARKETING MIX
Definition The 'marketing mix' is a set of o f controllable, tactical marketing tools that work together to achieve company's objectives Four Ps Product
In marketing, a product is anything that can be offered o ffered to a market that might satisfy a want or need. It is of two types: t ypes: Tangible (physical) and Intangible (non-physical). Since services have been at the forefront of all modern marketing strategies, some intangibility intangibility has become essential part of marketing offers. It is therefore the co mplete bundle of benefits or satisfactions that buyers perceive they will obtain if they purc hase the product. It is the sum of all physical, psychological, symbolic, and service attributes, not just the physical merchandise. All products offered in a market can be placed between Tangible (Pure Product) and Intangible (Pure Service) spectrum.
A product is similar to goods. In accounting, acco unting, goods are physical objects that t hat are available in the marketplace. This differentiates them from a service, which is a non- material product. The term goods is used primarily by those that t hat wish to abstract from the details of a given pro duct. As such it is useful in accounting account ing and economic models. The term product pro duct is used primarily by those that wish to examine the details det ails and richness of a specific market offering. As such it is useful to marketers, managers, and quality control specialists.
A service is a non-material or intangible pro duct - such as professional consultancy, serving, or an entertainment experience.
Coke ± Product
The Coca-Cola formula is The Coca-Co la Company's secret recipe for Coca-Cola. As a publicity marketing strategy started by Robert W. Woodru ff, the company presents the formula as one o f
the most closely held trade secrets ever and only a few employees know k now or have access to. This Coca-Cola formula appears to be the original formula to Coca-Cola. It is from the boo k ³For God, Country and Coca-Cola´.
The company Coca-cola is a multinational and it is not limited to one pro duct. Through the years they have invented and introduced many products than than their main cola drinks. The list of Cocacola brands are as follows:
Appletiser
Lemon & Paeroa
Aquarius
Lift
BPM Energy
Lift plus
Barq's
Lilt
Beat soda
Manzana Lift
Beverly
Mare Rosso
Cannings
Mello Yello
Cheers
Mezzo Mix
Ciel
Minute Maid
Coca-Cola Black
Nestea
Cherry Vanilla
New Coke
Coca-Cola Blak
Nordic Mist
Coca-Cola C2
OK Soda
Coca-Cola Cherry
Pibb Xtra
Coca-Cola Citra
Powerade
Coca-Cola M5
Qoo
Coca-Cola Zero
Raspberry Coke
Coca-Cola
Relentless
Coca-Cola with
Sarsi
Lemon
Senzao
Coca-Cola with Lime
Simply Orange
Dasani
Smart
Delaware Punch
Sparkle
Diet Coke
Sprite
Fanta
Sprite Ice
Fanta Citrus
Sprite Remix
Fioravanti
Sprite Zero
Fresca
Surge
Frisco
Swerve
Fruitopia
Tab
Frutonic
Tab Clear
Full Throttle
Tab Energy
Georgia
Tab X-Tra
Hi-C
Tiky
Hit
Vault
Kia-Ora Kinley
Pepsi ± Product
The Pepsi-Cola drink contains basic ingredients found in most other similar drinks including carbonated water, high fructose fructo se corn syrup, sugar, colorings, phosphoric acid, caffeine, citric acid and natural flavors. The caffeine free Pepsi-Cola contains the same ingredients but no caffeine. Some of the different and varied var ied brands of Pepsi are as follows:
All Sport
Pepsi
Aquafina
Pepsi Blue
Caffeine-Free Pepsi
Pepsi Cappuccino
Crystal Pepsi
Pepsi Max
Diet Pepsi
Pepsi ONE
Gatorade
Pepsi Samba
Izze
Pepsi Tarik
Jazz
Pepsi Twist
Josta
Propel Fitness Water
Kas
Sierra Mist
Manzanita Sol
Slice
Mirinda
SoBe
Mountain Dew
Storm
Mountain Dew AMP
Teem
Mountain Dew LiveWire
Tropicana Products
Mountain Dew MDX
Tropicana Twister
Mug Root Beer
Coke v/s Pepsi-Product
As seen above both the companies Coke and Pepsi have a number of products. Many of these products are innovations but there are also many products which are brought out just as a competitive product for the other companies. compa nies. Some of these products that are brought in the market by both the co mpanies to compete against each other are as follows:
Coke
Pepsi
The main dark cola drink of the company
Pepsi version of dark cola which is the
which started the rivalry between these
major primary competitor to Coke.
companies.
Full Throttle is an energy drink brand
AMP is an energy drink produced and
produced by The Coca-Cola Company. It
distributed by PepsiCo under the Mountain
debuted in late 2004 in North America.
Dew soft drink brand.
Vault is a carbonated beverage that was
Mountain Dew MDX is an energy drink dr ink
released by The Coca-Cola Company in
manufactured and distributed by PepsiCo
June 2005.
under the Mountain Dew brand. It was introduced in 2005.
Powerade is a sports drink by The CocaCo ca-
Gatorade is a non-carbonated sports spo rts drink
Cola Company and currently number two
marketed by Quaker Oats Company, a
in the sports drink market worldwide.
division of PepsiCo. Originally made for athletes, it is now often consumed as a snack beverage.
Sprite is a clear, lemon-lime flavored, nonno n-
7 Up is a brand o f a lemon-lime flavored
caffeinated soft drink, produced by b y the
soft drink.
Coca-Cola Company. It was introduced to the United States in 1961.
Tropicana Products is an American Minute Maid is a product line of beverages, usually associated with orange juice, but now extends to soft so ft drinks of many kinds. The Minute Maid company is now owned by Coca-Cola, and is the wo rld's largest
company based in Bradento n, Florida, USA, which is one of the t he world's largest producers and marketers of orange juice. It has been owned by PepsiCo, Pep siCo, Inc. since 1998.
marketer of fruit juices and drinks. It is headquartered in Houston, Texas. T exas.
Nestea is a brand of iced tea manufactured
Lipton Original Iced Tea is a ready-to-
and distributed by the Nestle company's compan y's
drink iced tea brand sold by Lipton through
beverage department in the United States,
a worldwide partnership with Pepsi.
and by Coca-Cola in several European countries, Brazil and Venezuela.
Barq's is a brand of root beer notable for
Mug Root Beer is a brand name of root
being the only major North American root
beer made by the Pepsi company.
beer to contain caffeine. It has been bottled
since the start of the 20th century and is currently sold by the Coca-Cola Company. Co mpany.
Diet Coke or Diet Coca-Cola Co ca-Cola is a sugar-
Diet Pepsi is a low-calorie carbonated cola. co la.
free soft drink produced and distributed by
It was introduced in 1964 as a variant of
The Coca-Cola Company. It was
Pepsi-Cola with no sugar.
introduced in the United States Stat es in July 1982.
Kinley is a brand of still or carbonated carbo nated
Aquafina is a non-carbonated bottled water
water owned by The Coca-Cola Company.
produced by PepsiCo.
Aquarius is a mineral sports drink
All Sport was a sports drink. It is produced
manufactured by The Coca-Cola Company. by PepsiCo. It was first introduced in 1983.
Fanta is a soft drink brand owned by The
Mirinda is a brand of soft drink. Mirinda is
Coca-Cola Company. It is produced and
owned by PepsiCo.
distributed by The Coca-Cola Company's Co mpany's bottlers.
Sprite Ice was the first flavor extension for
Pepsi Blue is a soft drink made by PepsiCo
The Coca-Cola Company's Sprite brand
and launched in mid-2002.
soft drink.
Coca-Cola Blak is a coffee-flavoured co ffee-flavoured soft
Pepsi Cappuccino is a cappuccino-flavored
drink introduced by Coca-Cola in 2006.
carbonated soft drink produced by Pepsico.
Maaza is a Coca-Cola fruit drink dr ink brand
Slice is a line of fruit-flavored soft drinks
marketed in India and Bangladesh.
manufactured by PepsiCo and introduced in 1984.
Limca is a lemon and lime flavoured
Teem was a lemon-lime-flavored lemon-lime-flavored soft so ft drink
carbonated soft drink made in India by
produced by The Pepsi-Cola Peps i-Cola Company.
Coca-cola.
Price In economics and business, the pr ice is the assigned numerical monetary value o f a good, service or asset. Price is also central to marketing where it is one of the four variables in the marketing mix that business people use to develop a marketing plan. Pricing is a big part o f the marketing mix. Choosing the right price and t he right pricing strategy is crucial to the marketing process. The price of the product pro duct is not something that is fixed. On the ot her hand the price of the product pr oduct depends on many other factors. Some times the price of the p roduct has got nothing to do with the actual product itself. itself. The price pr ice may act as a way to attract target customers. The price of the product is decided keeping many things in mind. These things include factors like cost incurred on the product, p roduct, target market, competitors, consumer buying capac ity etc.
Coke - Price
Coke was a company ruling the markets before Pepsi entered. Earlier the pr ice of coke was cost based i.e. it was decided dec ided on the cost which was spent o n making the product plus the profit pro fit and other expenses. But after the emergence of o f other companies especially the likes of Pepsi, Coca-co la started with a pricing strategy based on the t he basis of competition. Nowadays more expenses are spent on advertising my soft-drink companies rather than o n manufacturing. Few year before Coke has brought in a revolution especially in Indian markets w ith the Rs. 5 pricing strategy strategy which was very famous. famous. It was the first first company to introduce the small bottle of Coke for just Re.5. This T his campaign was very successful especially with the price conscious Indian consumers. Even today most prices of Coke are decided on the basis of the competition in the market.
Pepsi ± Price
Pepsi again decides it price on the basis of competition. The best think about the company Pepsi is that it is very flexible and it can co me down with the price very quickly. The co mpany is renowned to bring the price down even up to half if needed. But this risk taking attitude has also earned Pepsi losses. Though lowering the price would attract the customers but it would not help them cover up the co st incurred in production hence causing them losses. This was the situation earlier but now Pepsi is a full-fledged and growing company. It has covered all its losses and is now gro wing at a rapid rate.
Place
Place is a term that has a variety of meanings in a dictionary d ictionary sense, but which is principally used in a geographic sense as a noun to denote location, though in a sense of a location identified with that which is located there.
In marketing, place refers to one o f the 4 P's, defined as "the market place". It can mean a geographic location, an industry, a group of people (a segment) to whom a company wants to sell its products or services, such as young pro fessional fessional women wo men (e.g. for selling cosmetics) or middle-aged family men (e.g. for selling selling family cars).
Coke - Place
Coke is a multinational company co mpany and it has its market around the t he entire world. This can be said just by the first page on o n its site which asks people to select the place of their choice. The website we bsite looks something like t his:
Pepsi ± Place
Pepsi again has spread worldwide. Pepsi P epsi when entering a new market does not go in alone but it looks for partners and mergers. Till now Pepsi P epsi has collaborated with companies like Quaker Oats, Frito-lays, Lipton, Starbucks, etc.
Pepsi like Coke has spread all a ll over the world. It is because of this worldwide spread t hat now it is coming up with Advertisements which can be broadcasted in the different nations in the world. The recent example with would wo uld be the Pepsi advert advertisements isements having David Beckham as it brand ambassador.
Promotion Promotion is one of the four aspects aspect s of marketing. Promotion comprises four subcategories: Advertising Personal selling Sales promotion Publicity and public relations
The specification of these four variables creates a promotional mix or promotional plan. A promotional mix specifies how much attention to pay to each of the four subcategories, and how much money to budget for each. A promotional plan can have a wide range of objectives, including: sales increases, new product accept ance, creation of brand equity, positioning, competitive retaliations, or creation of a corpo rate image.
Both the companies Pepsi and coke are famous for their promotions. The rivalry was first started when Pepsi started with its blind taste tests known as t he Pepsi Challenge. The challenge is designed to be a direct response to critics who allege that Coca-Cola and Pepsi-Cola are identical drinks, with no meaningful differences. The cha llenge takes the form of a t aste test. At malls, shopping centers and other public pub lic locations, a Pepsi representative sets up a t able with two blank cups, one containing Pepsi and one with Coke. Shoppers are encouraged to taste both colas, and then select which drink they prefer. Then the representative reveals the two bottles so the taster can see whether they t hey preferred Coke or Pepsi. If Pepsi is revealed, the t he shopper is given a small
prize. The implication is that Pepsi tastes better than Coke, and thus consumers should purchase Pepsi. In blind taste tests, more consumers prefer the taste o f Pepsi to that of Coca-Cola. Because Coke was the historical leader, more people peo ple expected that they'd prefer and select Coke. Their surprise at picking Pepsi in the blind b lind taste test (products were served in unmarked cups) helped change their minds about which product prod uct they prefer. Capturing this on film, Pepsi turned this into a memorable TV campaign that lasted many years. Also ad-campaigns are put up on the television by both the players. T he following statistic just tells of much of share of ads on TV are captured by these players.
Infact in the next graph you can see how many programs are sponsored by cola companies and the leader among them is Pepsi. Mainly Ma inly Pepsi is the company sponsoring sponsor ing most cricket telecasts happening in India and spends most of its revenue in that field.
Nowadays both Coke and Pepsi are going in for Brand Ambassadors to promote their product. These brand ambassadors are famous people who usually people idolize and people can relate to them. The following pictures do not need any explanation as people are familiar familiar with the celebrities and can thus quickly identify with the product.
A list of Celebrities that are brand ambassadors for the co la companies are as follows. These celebrities are not only asked to work in the advertisements but they also have to use the product promoted by them and they t hey should not use the t he companies rivals proucts.
CELEBRITY ENDORSMENT IN 2008-09
PEPSI
COCA-COLA
Ram Charan Teja
Amir Khan
Ranbeer
Hrithik Roshan
Vijender(Boxer)
Ganesh
Katrina Kaif
Gautam Gambhir
Rani
Virender Sehwag
Kareena Kapoor
Vijay
M.S.Dhoni Shahrukh Khan
Conclusion Coca- cola company is a Beverage Be verage industry. Established in 1882 .It . It Headquarter is in Atlanta, U.S.A. Pepsi is a Beverage and a nd snacks industry Established in 1903. It Headquart er in Newyork and U.S.A.
Pepsi and Coke are competitor and both are produce a competitive product like Coke - Pepsi Sprite ± 7UP, Minute maid maid ± Tropicana, Fanta ± Mirinda. Diet Coke Coke ± Diet Pepsi , Kinley ± Aquafina etc.
Both company are decide his price on the competition competition bases but price of pepsi is very flexible flexible Pepsi come down price pr ice very quickly. Pepsi and Coke spread worldwide. Pepsi and coke doing very much advertisement. But pepsi is doing more advertisement in comparison co mparison to coke .both company have film star , cricketer for advertisement.
