CONSUMER BUYING BEHAVIOUR TOWARDS AREATED DRINKS WITH A COMPARATIVE ANALYSIS BETWEEN PEPSI & COKE
VS.
ACKNOLWEDGEMENT A Confession ! This might seem to be a strange way to begin, But then I hate using the first person, Nearly everything that I have done till date has been accomplished with other people, yet when you compile compile a report like this you are forced to use the narrative “I” when its really the “we” that counts. counts. So please remember that every time you see the word “I”, in the following pages, it refers to all those those who have helped me in reaching… For all that I am today and everything I might be Proud of tomorrow my parents are responsible… I am also grateful to all my friends, seniors and colleagues. Lastly I would like to thank the Almighty for his love and blessings which make
my clock tick.
TABLE OF CONTENTS 1.
EXECUTIVE SUMMARY
1
2.
RESEARCH OBJECTIVE
2
3.
RESEARCH METHODOLOGY
3
4.
SOFT DRINK INDUSTRY AN OVERVIEW
4-22
(a) Background (b) Market characteristics c
Segmentation (d) Retailers perception (e) Consumer habits (f) Major players and market shares (g) Market size and Growth (h) Manufacturing process (i) Distribution network (j) Pricing d (k) Advertising (l) SWOT analysis of the Areated drink industry in India
4-6 7-8 (c) 9 10 11 12-13 14 15 16-17 18 19-21 22
5. PEPSI MISSION STATEMENT
23
6. OVERVIEW
24-76
(a) uction (b) Co Headquarters (c) ate Citizenship (d) Cola North America & PepsiCo beverages International (e) Lay North America & International (f) de\Tropicana North America (g) r Foods North America (h) Co Products (i) the memory lane "History & Advertising highlights" (j) Co environmental commitment (k) el Management
Introd 24 Pepsi 25 Corpor 25 Pepsi26-27 Frito 28 Gatora 29 Quake 30 Pepsi 31-32 Down 33-68 Pepsi 69 Chann 70
(l) Process (m) werment (n) acturing Process (o) ging (p)
Selling 70 Empo 71 Manuf 71-74 Packa 74-75 Pricing 76
7. COMPANY PROFILE "RKJ GROUP"
77-78
8. GRAPHICAL PRESENTATION & ANALYSIS 110
79-
9.CONCLUSION
111-112
10. BIBLIOGRAPHY
113
11. ENCLOSURES TO THE REPORT.
EXECUTIVE SUMMARY This maiden effort is an attempt to introduce the reader to the factors that govern the Areated drink Industry. The first part tries to give the reader an overview of the Areated Drink Industry with a brief SWOT Analysis. The second second part introduces introduces the reader to the World of Pepsi (History, (History, Present Present and Future) and the Chief Bottler the R.J.K. Group. In the third part I have tried to provide practical alternate solutions for Sales and Market Expansion of Pepsi after analyzing the Research Findings.
REASEARCH OBJECTIVES
General Objective: •
To get a practical dimension of the various theories and management principles imparted to me in college.
•
To get a feel of the corporate jungle in order to enhance my vision and career opportunities.
Core Objective:
•
To assess assess the consumer consumer buying buying behaviour behaviour of the targeted targeted audience audience with with respect to areated drinks.
•
To assess the the awareness level level of the target audience audience with respect to pricing and promotional schemes of various brands in Noida region.
RESEARCH METHODOLOGY Data sources: the data was collected from both primary sources and secondary
sources. The primary source of information was collected through survey of 200 people in the entire Noida City. The required secondary data was collected from, newspapers, magazines, and pamphlets, trade journals, Information Brochures. The The data data capt captur urin ing g inst instru rume ment nt (DCI (DCI)) used used to colle collect ct prima primary ry data data was was the the Questionnaire. The DCI consisted of: Open-ended questions Closed-ended questions Multiple choice questions The universe was divided into a sample of 200 respondents. The respondents consisted of :•
Different age groups
•
Males and females
People from different localities within Noida region.
Chapter-1 INTRODUCTION
1.1 OVERVIEW OF THE COMPANY
PepsiCo is a world leader in convenient foods and beverages, with revenues of about $27 billion and over 143,000 employees. The company consists of the snack businesses of Frito-Lay North America and Frito-Lay International; the beverage businesses of Pepsi-Cola North America, Gatorade/Tropicana North Amer Americ ica a and and Peps PepsiC iCo o Beve Bevera rage ges s Inte Intern rnat atio iona nal; l; and and Quak Quaker er Food Foods s Nort North h Americ America, a, manufa manufactu cturer rer and market marketer er of readyready-toto-eat eat cereal cereals s and other other food food products. PepsiCo brands are available in nearly 200 countries and territories. Many of PepsiCo's brand names are over 100-years-old, but the corporation is relatively young. PepsiCo was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay. Tropicana was acquired in 1998 and PepsiCo merged with The Quaker Oats Company, including Gatorade, in 2001. Peps PepsiC iCo’ o’s s succ succes ess s is the the resu result lt of supe superi rior or prod produc ucts ts,, high high stan standa dard rds s of perfor performan mance, ce, distin distincti ctive ve compe competiti titive ve str strate ategie gies s and the high high integr integrity ity of our people. Our overriding objective is to increase the value of our shareholders' investment through integrated operating, investing and financing activities. Our strategy is to concen concentra trate te our resour resources ces on growin growing g our busine businesse sses, s, both both throug through h intern internal al growth and carefully selected acquisitions. Our strategy is continually fine-tuned to addr addres ess s the the oppo opport rtun unit itie ies s and and risk risks s of the the glob global al mark market etpl plac ace. e. The The corporation's success reflects our continuing commitment to growth and a focus on thos those e bus busines iness ses where here we can can drive rive our our own grow growth th and and cr crea eate te opportunities.
PEPSICO HEADQUARTERS
PepsiCo World Headquarters is located in Purchase, New York, approximately 45 minutes from New York City. The seven-building headquarters complex was designed by Edward Durrell Stone, one of America's foremost architects. The build-ding occupies 10 acres of a 144-acre complex that includes the Donald M. Kendall Sculpture Gardens, a world acclaimed sculpture collection in a garden setting. The collection of works is focused on major twentieth century art, and features work works s by mast master ers s such such as Augu August ste e Rodi Rodin, n, Henr Henrii Laur Lauren ens, s, Henr Henry y Moor Moore, e, Alexander Calder, Alberto Giacometti, Arnaldo Pomodoro and Claes Oldenberg. The garde gardens ns were were origin originall ally y design designed ed by the world world famous famous garden garden planne planner, r, Russell Page, and have been extended by François Goffinet. The grounds are open to the public, and a visitor's booth is in operation during the spring and summer.
CORPORATE CITIZENSHIP
PepsiCo believes that as a corporate citizen, it has a responsibility to contribute to the quality of life in our communities. This philosophy is put into action through support of social agencies, projects and programs. The scope of this support is extensive – ranging from sponsorship of local programs and support of employee volunteer activities, to contributions of time, talent and funds to programs of nati nation onal al impa impact ct.. Each Each divi divisi sion on is resp respon onsi sibl ble e for for its own own givi giving ng prog progra ram. m. Corporate giving is focused on giving where PepsiCo employees volunteer.
PEPSI-COLA NORTH AMERICA AND PEPSICO BEVERAGES INTERNATIONAL
PepsiCo’s beverage business was founded at the turn of the century by Caleb Bradham, a New Bern, North Carolina druggist, who first formulated Pepsi-Cola. Today consumers spend about $33 billion on Pepsi-Cola beverages. Brand Pepsi and other Pepsi-Cola products – including Diet Pepsi, Pepsi-One, Mountain Dew, Slice, Sierra Mist and Mug brands – account for nearly one-third of total soft drink sales in the United States, a consumer market totaling about $60 billion. Pepsi-Cola also offers a variety of non-carbonated beverages, including Aquafina bottled water, Fruitworks and All Sport. In 1992 Pepsi-Cola formed a partnership with Thomas J. Lipton Co. Today Lipton is the biggest selling ready-to-drink tea brand in the United States. Pepsi-Cola also also marke markets ts Frappu Frappucci ccino no readyready-toto-dri drink nk coffe coffee e throug through h a partne partnersh rship ip with with Starbucks. In 2001 SoBe became a part of Pepsi-Cola. SoBe manufactures and markets an innovative line of beverages including fruit blends, energy drinks, dairy-based drinks, exotic teas and other beverages with herbal ingredients. Outside the United States, Pepsi-Cola soft drink operations include the business of Seven Seven-Up -Up Intern Internati ationa onal. l. PepsiPepsi-Col Cola a bevera beverages ges are availa available ble in about about 160 countries and territories. Pepsi-Cola began selling its products internationally in 1934 with its operations in Canada. Operations grew rapidly beginning in the 1950s. In addition to brands marketed in the United States, major products include Mirinda and Pepsi Max. Peps Pepsi-C i-Col ola a Nort North h Amer Americ ica a incl includ udes es the the Unit United ed Stat States es and and Cana Canada da.. Key Key international markets include Argentina, Brazil, China, India, Mexico, Philippines,
Saudi Saudi Arabia Arabia,, Spain, Spain, Thaila Thailand nd and the United United Kingdo Kingdom. m. PepsiC PepsiCo o Bevera Beverages ges International also produces, sells and distributes Gatorade sports drinks as well as Tropicana and other juices internationally. Pepsi-Cola provides advertising, marketing, sales and promotional support to PepsiPepsi-Col Cola a bottle bottlers rs and food food servic service e custom customers ers.. This This includ includes es some some of the world's best-loved and most-recognized advertising. New advertising and exciting promotions keep Pepsi-Cola brands young. The compan company y manuf manufact acture ures s and and sells sells soft soft drink drink conce concentr ntrate ate to PepsiPepsi-Col Cola a bottlers. The company also provides fountain beverage products.
1.2 HISTORY
Caleb Bradha Bradham, m, a young young pharma pharmacis cistt from from New Bern, Bern, North North Caroli Carolina, na, 1893: Caleb begins experimenting with many different soft drink concoctions; patrons and friends sample them at his drug store fountain. 1898: One of Bradham's formulations, known as "Brad's Drink," a combination of
carbon carbonate ated d water, water, sugar, sugar, vanilla vanilla,, rare rare oils oils and kola kola nuts, nuts, is rename renamed d "Pepsi-Cola" on Aug. 28. 1907: Pepsi-Cola Company continues to expand. The bottling network reaches
40 franchises, the trademark is registered in Mexico and syrup sales top 100,000 gallons. 1908: Pepsi-Cola becomes one of the first companies to modernize delivery from
horse-drawn carts to motor vehicles. A total of 250 bottlers are now under contract in 24 states 1909: Automobile racing pioneer Barney Oldfield becomes the first celebrity to
endorse Pepsi when he appears in newspaper ads describing Pepsi as "A bully bully drink…r drink…refr efresh eshing ing,, invigo invigorat rating ing,, a fine fine bracer bracer before before a race." race." The The theme, "Delicious and Healthful" appears, and will be used intermittently over the next two decades. first Pepsi Pepsi-Co -Cola la bottle bottlers' rs' conve conventio ntion n is held held in New Bern, Bern, North North 1910: The first Carolina 1917-18: Price controls hold sugar at 5-1/2 cents per pound during WWI. When
the war ends, so do the price controls. And the price of sugar begins an upward spiral. 1936: Pepsi-Cola Limited of London is established. 94 new U.S. franchises are
granted. Year-end profits reach $2,100,000.
1938: The trademark is registered in the Soviet Union. There are 85 Pepsi-Cola
bottlers operating under franchise agreements across Canada. 1939: Havi Having ng surv surviv ived ed the the Gr Grea eatt Depr Depres essi sion on and and a hand handfu full of owne owners rshi hip p
changes, Pepsi is still being sold in a 12-ounce bottle for just a nickel -twice as much refreshment as other soft drinks for the same price. A newspaper cartoon strip, "Pepsi & Pete," introduces the theme "Twice as Much for a Nickel" to increase consumer awareness of the Pepsi value adva advant ntag age. e. Walt Walter er S. Mack Mack Jr. Jr. is elec electe ted d Pres Presid iden entt of Peps Pepsii-Co Cola la Company. Pepsi makes makes advert advertisi ising ng histor history y with with the first first advert advertisin ising g jingle jingle ever ever 1940: Pepsi broadcast nationwide. "Nickel, Nickel," will eventually become a hit record and will be translated into 55 languages. A new, more modern logo is adapted. 1941: In support of America's war effort, Pepsi changes the color of its bottle
crowns to red, white and blue. A Pepsi canteen in Times Square, New York, operates throughout the war, enabling more than a million families to record record messag messages es for armed armed servic services es person personnel nel overse overseas. as. PepsiPepsi-Col Cola a Company, until now a subsidiary of Loft Incorporate, is merged with Loft. Since the Pepsi brand name has become more famous than that of its owner, the parent company's name is changed to Pepsi-Cola Company. Pepsi's stock is traded on the New York Stock Exchange for the first time. "The Light Light Refres Refreshme hment" nt" evolv evolves es to incorp incorpora orate te "Refre "Refreshi shing ng Withou Withoutt 1954: "The Filling." 1956: 149 Pepsi-Cola bottling plants are operating in 61 countries outside the
U.S.
1958: Pepsi struggles to enhance its brand image. Sometimes referred to as "the
kitchen cola," as a consequence of its long-time positioning as a bargain brand, Pepsi now identifies itself with young, fashionable consumers with the "Be Sociable, Have a Pepsi" theme. A distinctive "swirl" bottle replaces the earlier straight-sided bottle. Frito-Lay pioneers the use of hand-held computers for marketing.
1988 :Pepsi-Cola Company is reorganized along geographic lines - East, West, South and Central regions - each with its own president and senior management staff.
•
Pepsi-Cola International enters a landmark joint venture agreement
in India. •
Renewe Renewed d accord accord with with the Soviet Soviet Union Union extend extends s Pepsi PepsiCo Co trade trade
relationships. •
Hostess Frito-Lay, a major new partnership in Canada, is formed
with Hostess Foods in Canada. •
"Chase," a four-part Pepsi ad featuring Michael Jackson in his first-
ever ever epis episod odic ic comm commer erci cial al,, airs airs durin during g the the Gr Gram ammy my awar awards ds and and becomes the most-watched commercial in advertising history. •
Peps Pepsi-C i-Col ola a runs runs first first paid paid adve adverti rtise seme ment nt on Sovi Soviet et TV durin during g
"Pozner in America," a joint US-Soviet production. •
Worldwide retails sales of Doritos brand tortilla chips hit $1 billion. It
is the world's largest selling snack chips brand. •
Pepsi and Michael Jackson raise $600,000 with a special New York
City concert benefiting the United Negro College Fund.
2000 Pepsi-Cola Co. launches new beverage line, FruitWorks, a five flavor
line of fruit drinks. Tropicana’s Pure Premium Multivitamin juice voted "Best Product of the Year " in the Total Soft Drink and Juice category in France. Hallie Eisenberg, star of Pepsi commercials, receives Young Artist Special Achievement Award. Peps Pepsi-C i-Col ola a revi revive ves s its its "Pep "Pepsi si Chal Challe leng nge" e" adve advert rtis isin ing g camp campai aign gn.. Challenge includes Pepsi One and Diet Coke as well as regular cola. PepsiPepsi-Col Cola a teams teams up with Yahoo Inc., Inc., the bigges biggestt web naviga navigatio tion n company, in a multimedia marketing campaign aimed at teens and young adults. Lipton’s Iced Tea and Lipton Brisk sign three-year deal to become "Official Iced Tea of the PGA Tour." Mountain Dew debuts new Spanish language commercial, "Arcade." Tropicana, in a joint venture with Galaxy Foods Co., will introduce an icy smoothie soy milk-and-fruit drink, made with juice, fruit puree along with soymilk and soy protein. Pepsi and Warner Music introduce "Choose Your Music" promotion. PepsiCo, Inc. renewed agreement to sell Pepsi-Cola, Mountain Dew and other Pepsi beverages at Tricon Global Restaurants Inc.’s US locations for 12 years. Aquafina brand bottled water becomes the best-selling brand of singleserve bottled water in US retail channels. Pepsi donates $100,000 to Michael J. Fox Foundation for Parkinson’s Research. The actor has appeared in the Award Winning Diet Pepsi commercial "Apartment 10G." The PepsiCo Foundation has endowed a $200,000 fellowship fund at
Harvard in the name of the late Pepsi-Cola executive Naylor Fitzhugh. FORTUN FORTUNE E magazi magazine ne names names Pepsi PepsiCo Co one of Americ America’s a’s "50 Best Best Companies for Minorities." Peps PepsiC iCo o pres presen ents ts Lead Leader ersh ship ip gift gift of $500 $500,0 ,000 00 to Urba Urban n Leag League ue Breakthrough! Campaign. PepsiS PepsiStuf tuff.c f.com, om, a web site site for merch merchand andise ise,, discou discounts nts and digita digitall musi music c files files from from bigg bigges estt name names s in movi movies es,, musi music, c, vide video o game games, s, apparel and sports is launched in joint promotion with Yahoo. Global Finance magazine names PepsiCo to its list of The World’s Best Global Companies. Pepsi teams up with Yahoo! in a Spanish back-to-school contest called "Tu Sabor, Tu Futuro" ("Your Taste, Your Future"). Nationwide contest offers opportunities to win $10,000 college scholarships. Minority MBA magazine names PepsiCo one of "Ten Top Companies for Minority MBAs". Dawn Hudson, senior vice-president, strategy and marketing for PepsiCola Cola Nort North h Amer Americ ica, a, rank ranked ed amon among g 50 most most powe powerf rful ul peop people le in marketing by Ad Age. Pepsi-Cola launches "Sierra Mist" a caffeine-free, lemon/lime soda. FORTUNE magazine names Indra Nooyi, PepsiCo Inc.’s CFO as one of "The 50 Most Powerful Women in Business." The North American Coffee Partnership launched Caramel-flavored bottle bottled d Frappu Frappucci ccino no Coffee Coffee Drink Drink – the sixth sixth flavor flavor additio addition n to its popular line of ready-to-drink coffee. PepsiCo, Inc. reaches agreement to acquire a majority stake in South Beach Beverage Company, whose highly innovative SoBe brand has made it one of industry’s most successful companies.
Pepsi-Cola Co.’s program to assist music education in schools, called "Share the Joy with Music," is in stores nationwide. PepsiCo announces $4 billion share repurchase program. PepsiCo, Inc. and The Quaker Oats Company reached an agreement to merge. PepsiCo, Inc. rescinds share repurchase program.
2001 PepsiCo completes the acquisition of a majority stake in South Beach
Beverage Co. Peps PepsiC iCo o anno announ unce ces s a new new join jointt vent ventur ure e will will be forme formed d in Egyp Egyptt combining the salty snack operations of Chipsy, the current market leader, and Tasty Foods, which is owned by PepsiCo. PepsiCo PepsiCo launches launches Diversity@work Diversity@work,, http://www.pepsico.com/diversity web site. Pepsi-Cola Pepsi-Cola Company launches Dole single-ser single-serve ve juices juices in vending vending mach machin ines es,, cool cooler ers s and and othe otherr reta retailil outl outlet ets s thro throug ugho hout ut the the Unite United d States. Mounta Mountain in Dew annou announce nces s a multiy multiyea earr agreem agreement ent with with Evernh Evernham am Moto Motors rspo port rts s to spon sponso sorr the the crew crew of Atwo Atwood od #19 #19 Dodg Dodge e Deal Dealer erss Intrepid R/T race team on the 2001 NASCAR Winston Cup circuit. Pepsi-Cola’s flagship brand will have new tagline, "The Joy of Pepsi." Pepsi-Cola announces a multi-year agreement with Britney Spears as part of the "Joy " Joy of Pepsi" campaign. Pepsi will also co-sponsor Spear’s upcoming worldwide concert tour. Tropicana celebrates a company milestone – 300 billion fresh oranges squeezed since the company began making country’s first ever massdistributed, not-from-concentrate juice in 1947. The firs firstt Wins inston ton Cup Cup race race at NASCA ASCAR R’s newes west trac track, k, the the
Chicagoland Speedway will be the Tropicana 400 on July 15. Frito-Lay announces the launch of Cheetos Mystery Colorz Snacks, a cheesy new Cheetos product that magically turns color in your mouth. Tropic Tropicana ana introd introduce uces s Smooth Smoothies ies.. A natura naturall juicejuice-ba based sed produc product, t, smoothies combine fruit juices and non-fat yogurt into a smooth, filling drink that delivers nutrition, taste and convenience. Planned merger of PepsiCo and Quaker gets European Commission clearance. On April 7, World Health Day, Tropicana sponsors The Tropicana Health Run in New Delhi, India, a benchmark event that drew 10,000 promising athletes and raised funds to fight AIDS. Pepsi-Cola Company has signed an exclusive licensing agreement with with AmeriC AmeriCoGr oGroup oup to create create new new lines lines of appare apparel, l, footwe footwear ar and accessories for the Pepsi and Mountain Dew brands in the United States and Canada. The launches are scheduled for the spring 2002 fashion season. May 1- Pepsi-Cola launches the bold new Mountain Dew Code Red nati nation onwi wide de.. It is Moun Mounta tain in Dew’ Dew’s s firs firstt line line exte extens nsio ion n sinc since e the the introduction of Diet Mountain Dew in 1988. PepsiCo is a sponsor of the Keep America Beautiful annual Great American Cleanup. The company provides posters with image of Iron Eyes Cody, the "Crying Indian." May 1 -PepsiCo shareholders overwhelmingly approve plan to merge with The Quaker Oats Company. May 2 –The Board of Directors of PepsiCo, Inc. elected Steven S Rein Reinem emun und d chai chairm rman an of the the boar board d and and chie chieff exec execut utiv ive e offic officer, er, succeeding Roger Enrico who will become vice chairman. The board
also elected Indra K. Nooyi as a director and gave her the additional title of president of PepsiCo in addition to CFO. Frito-Lay introduces Lay’s Bistro Bistro Gourmet potato chips. PepsiPepsi-Col Cola a Compan Company y introd introduce uces s a "Pepsi "Pepsi Twist. Twist."" Regula Regularr and diet diet versions of the crisp new cola with lemon are entering retail outlets in selected U.S. markets. Tropicana Smoothies, a juice and yogurt drink, debut in test markets. PepsiCo moves up Fortune’s List of ‘Best Companies for Minorities’ to #13. SLAM, the orange brand Mirinda, is launched in Italy. Peps PepsiC iCo o acqu acquire ires s Tasa Tasalili Food Foods, s, Saud Saudii Arab Arabia ia’s ’s lead leadin ing g snac snackk company. On August 2, PepsiCo completes its merger with The Quaker Oats Company, creating a $25 billion food and beverage company focused on the rapidly growing consumer demand for convenience. PepsiCo introduces a new corporate logo. Follow Following ing the Septem September ber 11 tragic tragic events events of terror terrorist ist attack attacks, s, the PepsiCo Foundation donates $5 million in support of relief efforts. Tropicana Pure Premium Low Acid orange juice makes official debut at Tropicana 400. Diet Sierra Mist is introduced. Pepsi Pepsi kicks kicks off online online market marketing ing with with Yahoo Yahoo.. Soon Soon after, after, Adweek Adweek Names Pepsi’s Premier of Britney’s As on Yahoo! Best Online Event of 2001. PepsiCo wins the first mulitcultural awards competition held by the Association of National Advertisers. DiversityInc.com says Pepsi beats Coke in Diversity Cola Wars.
Pepsi-Cola introduces Credit Card Vending.
Forbes es name names s Peps PepsiC iCo o one one of the the Plat Platin inum um 400, 400, "The "The Best Best Big Big 2002 Forb Companies in America." Frito-Lay introduces Go Snacks, canisters that truly go anywhere. Gato Gatora rade de intr introd oduc uces es new new Gato Gatora rade de ICE ICE subli subline ne in thre three e flav flavor orssOrange, Lime and Strawberry. Tropicana Pure Premium announces sponsorship of Disney's awardwinning show The Lion King.
MARKET CHARACTERISTICS The soft soft drink drink market market is highly highly skewed skewed in terms terms of place place of consum consumpti ption on , in terms of regional distribution & soft drink flavours as well as in terms of SKUs While 80% of the consumption is impulse based outside home 20% comes from consumption at home. This trend is slowly changing with increase in occasion led sales. Changing life style , increasing urbanization and impact of liberalization has slowly and gradually started moving the market from impulse led to occasion led and home refrigeration led consumption. The market preference is highly regional based. While cola drinks have main markets in metro cities and northern states of UP, Punjab, Haryana etc. Orange flavoured drinks are popular in southern states. Sodas too are sold largely in southern states besides sale through bars. Western markets have preference towards mango flavoured drinks. Diet Coke presently constitutes just 0.7% of the total carbonated beverage market. In terms of SKUs the market is skewed towards 300ml which constitutes around 80-85% of the market rest is in the form of other pack sizes, but with increasing occasion led and home refrigeration led consumption the sales of bigger SKUs like more than 1 Litre pack sizes has increased this has led to increase in contribution from PET bottle sales to 15% of the total turnover in FY00. and most of these PET bottle sales, upto 75% are in urban areas. Anothe Anotherr skewne skewness ss is in terms terms of the time of the year year when when the consump consumptio tion n takes place. Most of the sales of soft drinks take place during summers while just 5-6% of total sales take place in winters. In summers the high season lasts for 70-75 days which contributes more than 50% of the total yearly sales.
Another peculiar feature of the market is that of positioning and targeting of variou various s brands brands.. While While Cola brand brand of Coke Coke is target targeted ed at teena teenager gers s and is positioned as refreshment for mind and body. Its ThumpsUp brand is targeted at people people in age group group of 20-29 20-29yea yearr positio positioned ned as thing thing for advent adventure ure-lo -lovin ving, g, successful successful and macho person. person. Fanta is targeted at consumers consumers in pre-teen age group group and is positio positioned ned as fun thing. thing. Sprite Sprite is target targeted ed toward towards s teenag teenagers ers positio positioned ned to convin convince ce them to follow follow their their instin instincts cts and not to fall for false pretence. Maza is positioned as family drink while Diet Coke is targeted towards health and figure conscious people especially teenage girls. Pepsi's cola product is targeted towards youth while the Mirinda and 7 Up are positioned on fun platform and for enjoying light moments of life. The distribution network of Coca Cola had6.5 lakh outlets across the country in FY00 which the company is planning to increase to 8lakhs by FY01.On the other hand PepsiCo's distribution network had 6 lakh l akh outlets across the
SEGMENTATION The soft drink market can be segmented on the basis of place of consumption or on the basis of type of products. The segmentation on the basis of place of consumption divides the market into two parts: •
On-p On-pre remis misee-80 80% % of the the cons consum umpt ptio ion n of soft soft drin drinks ks is on prem premis ise e i.e. i.e.
restaurants, railways stations, cinema etc. •
At home the rest 20% of the market compromises of the soft drink purchase
for consumption at home The market can also be segmented on the basis of types of products into cola products and non-cola products. •
Cola products account for nearly 61-62% of the total soft drinks market. The
brands that fall in this category are Pepsi, Coca-Cola, Thumsup, and Diet coke, Diet Pepsi etc. •
Non-cola segment which constitutes 36% can be divided into 4 categories
based on the types of flavors available, namely: -
Orange
-
Cloudy Lime
-
Clear Lime
-
Mango
-
Apple etc.
RETAILER’S PERCEPTION A survey was conducted to study the retailers views of the present market, future trend and the consumer behavior patterns. The findings of the survey are as follows: •
Retailers Retailers stated that the consumers consumers are loyal loyal to the particular particular segment of the soft drink i.e. cola, orange or lemon. But as far the loyalty for the brands in each segment is concerned, it is not very significant.
•
43% of the retailers surveyed told that in soft drinks advertising is the key component in driving sales. While 32% stated promotional schemes and 20% brand loyalty as the reason.
•
As consumers are not very brand loyal where the purchase of soft drinks is concerned, the retailer push becomes a critical issue. They usually sell the product in which they get the maximum benefit. For this, the companies try to offer them higher margins.
While distributors get a margin of Rs 8-9 per crate ( 1 crate= 24 bottles) at 3-4% of MRP, retailers are given a margin of 10-12% of MRP. The retailers are not happy with this as the cost of refrigeration is very high for soft drinks. To over come this problem the companies are offering visi-coolers schemes to their main retailers.
CONSUMER HABITS Soft drinks come under the category of products purchased in impulse. Though the the mark market ets s marr marred ed by bran brand d loya loyalt lty y the the purc purcha hase se deci decisi sion on itse itself lf is a low low involv involveme ement nt decis decision ion.. This This attitud attitude e of impuls impulse e buying buying is slowly slowly changi changing ng to occasi occasionon-led led buying buying and also also to some some extent extent to consum consumpti ption on throug through h home home refrigeration particularly in urban areas. The market is slowly moving from nonalcoholic carbonated drinks to fruit based drinks and also to plain bottled water due due to lowe lowerr pric price e and and read ready y avai availa labi bilility ty.. Cons Consum umer ers s purc purcha hase se soft soft drin drinks ks primarily to quench thirst. Therefore people traveling and not having access to hygienic water reach out for soft drink. This accounts for a large part of the sales. Brand awareness plays a crucial role in purchase decisions. To create this kind of brand awareness advertising and sales promotion become very very impo import rtan antt for for the the soft soft drin drink k manu manufa fact ctur urer ers. s. Vari Variou ous s sale sales s prom promot otio ions ns schemes are offered to the retailers and customer. Advertisements serve the purpose of generating awareness among the customers and to some extent create desire in their mind, but sales promotion schemes offered to customer as well as retailers actually affect the sales at the point of purchase.
MAJOR PLAYERS & MARKET SHARES The soft drink market in India is dominated by the two global majors Pepsi and Coca-C Coca-Cola ola.. Coca-C Coca-Cola ola,, which which had winded winded up its India India operat operation ions s during during the introduction of the FERA regime, reentered India 16 years later in1993. CocaCola acquired a major chunk of the soft drink market by buying out local brands Thumps Up, Limca and Gold Spot from Parle Beverages. Coca-Cola has also acquired Cadbury Schweppes soft drink brands Crush, Canada Dry and Sport Cola in early 1999 and now recently in Oct '00 it acquired distribution rights of these brands from IFB Agro Limited. Pepsi although started a couple of years before Coca-Cola in 1991, has a lower market share today. It has bought over Mumbai based Duke’s range of soft drink brands. Both the cola manufacturers come up with their own market share figures and claim to have increased their share. Recently in August '00 Pepsi claimed to have increased its market share for for firs firstt five five mont months hs of cale calend ndar ar year year 2000 2000,, to 49% 49% from from earli earlier er level levels s of 47.3%,while Coke claims to have increased its share in the market to 57% in the same period from55% in the corresponding period last year. Coke figures are based on ORG's data while that of Pepsi are based on IMRB data. MARKET SHARE (IN %) Brand Name
Market Share (in %)
Market Share (in %)
( ORG figures)
( IMRB figures)
Pepsi
41
49
Coca Cola
57
48
COMPARATIVE ANALYSIS AT A GLANCE Particulars
Coca-Cola
Pepsi
Invented in
1886
1890
Launched in India
1993
1991
Innings
2nd
time,
lef left Ist time in Indian market
India in 1977 Brands (Cola)
Coke, ThumsUp
Advertising agency
Chaitra
Pepsi
Leo HTA
Burnett Previou ious Ad Advertising ag agency
McCann-
HTA
Erickson Celebr Celebritie ities s into into adver advertis tiseme ements nts Hritih Hritihik ik Roshan Roshan,, Amitabh
Bachchan,
Aishwa Aishwarya rya Rai, Rai, Shah Shahru rukh kh Khan Khan,, Sach Sachin in Dale Dalerr
Mehn Mehndi di,, Tendulkar etc.
etc Most appealing
30%
63%
Rs. 75 cr.
Rs. 40 cr.
Rs. 30 cr.
Rs. 25 cr.
advertisements Advert Advertise isemen ments ts expen expense ses s in 2001 TV Ads outdoor ads. Marketing share
ORG
figures 57%
in (Used by Coke)
India overall
IMRB
figures
(Used by Pepsi)
48%
41% 49%
MARKET SIZE AND GROWTH
Soft drink market size for FY00 was around270mn cases (6480mn bottles). The market, which was witnessing 5-6% growth in the early‘90s and even slower growth at around 2-3% in late 80s. Presently the market growthhas slowed down with growth rate of 7-8% per annum compared to 22% growth rate in the previous year. The market size for FY01 is expected to be 7000 mn bottles. Year
Production (Mn bottles)
88-89
1968
89-90
2070
90-91
2195
91-92
2490
92-93
2800
93-94
3000
94-95
3240
95-96
4000
96-97
4450
97-98
4920
98-99
5670
99-00
6480
2000-01(E)
7000
MANUFACTURING PROCESS Soft Soft drin drinks ks may may be carb carbon onat ated ed or nonnon-ca carb rbon onat ated ed.. For For carb carbon onat ated ed drink drinkss carbonation forms a critical part of the process. In carbonation carbon dioxide is dissolved in the water, which is used in manufacturing the drink. Normally the ingredients in soft drinks are as follows-acidulant (citric, malic orphosphoric acid), sweetener, flavour and preservative. In a bottling plant, soft drink companies supply concentrates to the bottlers where it is diluted in distilled water along with other ingredients in specific proportions. The quality of this mixture is maintained through strict controls.
DISTRIBUTION NETWORK There is no involvement of wholesalers in the distribution of products. It is more like an agent network. The companies have divided the country into various regions and established a franchisee in each region. The franchisees have their own bottling plants and manage all the day to day operations. However, of late, the soft drink companies companies have started started setting setting up company company owned bottling units/ have been acquiring some of its franchise bottles. ADVANTAGES AND LIMITATIONS OF FRANCHISEE NETWORKADVANTAGES •
Reduced investment levels in manufacturing equipment's:
If a company sources its products from franchisees, it does not require to set up its own manufacturing plant for the purpose. The company thus benefits from reduced investments in manufacturing facilities, inventories of raw materials and other functions required for the manufacturing of the components. •
Savings on management time:
As the components are out soured, the company stands to gain by saving on the mana manage geme ment nt time time and and cost cost.. The The role role of the the comp compan any y gets gets rest restri rict cted ed to establishing the systems and in quality control at the franchise locations. Over a period of time the systems implemented stabelise and hence the involvement of the company remains on at the strategic decisions level.
•
Regular supply of components:
With the development of strong relations with the franchisees, the manufacturer can be assured of a regular supply of components as per the manufacturer’s specifications. •
Reduced interfacing and dealing with labor
The The labo laborr and and unio union n empl employ oyee ees s invo involv lved ed in the the manu manufa fact ctur urin ing g are are the the responsibility of the franchisee. This is beneficial as it reduces the management time and involvement in solving their issues. LIMITATIONS
Large volumes To set up an ancillary base, the company is required to produce large volumes as the the fran franch chis isee ee may may not not be inte intere rest sted ed in maki making ng larg large e inve invest stme ment nts s in the the manufacturing facilities if the volumes required to be produced are low. Especially the existing franchisees will not take the risk of tying up with new players. •
Financial support
In India, most vendors are small in size and do not have the capital to invest in these equipment's, which requires the manufacturers to give them the financial support. This problem becomes intense when the manufacturer has an existing franchisee base and wants to increase the capacity. •
Quality
In some cases, due to cost considerations, the manufacturers are forced to compromise on quality.
PRICING
The general price level : Capacity
Price
1.
300 ml
RS 10
2.
500 ml
RS 18
3.
1 litre
RS 23
4.
1.5 litre
RS 43
5.
2 litre
RS 50
6.
Can
RS 18
7.
Diet Can
RS 18
8.
500 ml (Pet on the go)
RS 18
ADVERTISING Advertising are used to build up a long-term image for a product in order to trig trigge gerr quic uick sales ales.. Adver dverti tis sing ing is a effi efficcient ient way to rea reach nume umerou rous geographically dispersed buyers at a low cost per exposure certain forms of advertising, such as TV Advertising can require a large budget, while other forms, such as of newspaper advertising can be done on small budget. Local bottlers very very domina dominate te role role in adver advertis tising ing in their their exclus exclusive ive territ territory ory.. The respec respectiv tive e bottlers under the supervision of the parent company do all sales promotion activities in the exclusive territories. Different media used for advertising are •
Radio
•
TV
•
Dealer Boards
•
Stickers
•
Banners
•
Newspapers
•
Magazines
•
Exhibition
•
Street lighting
Out of these Dealer boards, Banners, Exhibitions, Street Lighting etc. are done by bott bottle lers rs unde underr the the supe superv rvis isio ion n of the the comp compan any y wher where e as othe otherr form forms s of advertising in the mass media are conducted conducted directly by the companies. ADVERTISING CAMPAIGN IN INDIA
Pepsi and Coke have signed on various celebrities to endorse their brands. These celebrities are the icons in the minds of common people who act as brand ambass ambassado adors rs for partic particula ularr produc products, ts, and when when people people watch watch their their icons icons do something they tend to follow. For e.g. a cricketing fan when watches Sachin Tendulker having Pepsi is more likely to drink Pepsi than any other soft drink. Coca-Cola in their stable have various celebrates from entertainment world like Hritik Roshan Roshan who endorses endorses specially specially for Coca-Cola. Coca-Cola. Aishwarya Aishwarya Rai and Amir Khan are common names in Coke’s stable which act as their brand ambassadors for various brands. Similarly Pepsi has the likes of Amitabh Bacchan, Sharukh Khan to endorse for its various various products from the Bollywood and from the sports arena it has the likes likes of Sachin Tendulkar to endorse for its products. products. The great cola wars are after fought on Television. TV as a medium reaches to most of our urban population, which are the major consumers of Soft Drinks. Both the cola majors openly attack each other’s products in order to prove that they are better. Whenever there is a new ad on TV by any company there is a counter ad by the rival brand. And it is not just the companies which care involved the general people also eagerly await what the other are is going to do now. There have been many examples of this in the past the most recent one is the counter of Coke’s Amir Khan Starrer ‘Thanda matalab Coca Cola’ ad by Pepsi. In this ad coke is trying to emphasize that coca cola is the synonymous of soft drink, which is usually called ‘Thanda in India’. Pepsi countered this ad using their celebrities like like Fardee Fardeen n Khan Khan and and Rahul Rahul Khanna Khanna,, which which direct directly ly attack attack coke coke by sayin saying g
‘Business thanda matlab matlab Coca –cola’. This type of advertising advertising has taken the cola wars to the new heights. Pepsi Pepsi has a Shah Rukh Rukh Khan starrer. starrer. Correction: Correction: a teeny bopperbopper- starring starring 60seconder which has our young protagonist using his PC to create a Sholaymeets- the Midwest Pepsi claims to have based the script on the key consumer insight that teens today are taking control. There’s redefinition of the influence of celebrities and role models. The film has a sense of what Pepsi calls hey I can get there too. Less conflict, more controls. The The Amri Amrish sh Puri Puri ‘Jog ‘Joggi ging ng in the the park park’’ comm commer erci cial al was was abou aboutt a new new soci social al equation, getting your own way without conflict. ‘Yeli dil maange more’ is an expression of that state of mind. Its not about satisfying a thirst, its about making a thirst bigger. Recently both Coke and Pepsi have come out with their new Ads aiming at the generation next. In this series Aishwarya Aishwarya Rai, Starrer new ad as come out which which shows the freedom freedom todays todays youngsters youngsters want to enjoy in their lifes. lifes. With this ads Coke has actually shifted from its policy of aiming at 8-80 to definitely a younger generation , which is actually following Pepsi’s foots steps.
SWOT ANALYSIS OF THE AREATED AREATED DRINK INDUSTRY IN INDIA Strengths •
Huge Financial Resources
•
High degree of brand awareness
Opportunities •
The Growing population of India
and product acceptance. •
Effective distribution network .
Weakness •
Failure to create a effective lobby to
Threats •
fight for their rights with the
The threat of new entrants & of substitutes
machinery. •
•
Failure to curb the activities of the
Consumer buying power also represents a key threat in the industry.
unorganized sector i.e. the parallel industry. •
Huge advertising budgets.
•
Government policies.
•
The uncontrolled unorganized sector i.e. the parallel industry.
•
Failure to reduce the general price level.
•
Failure in promoting new brands.
•
Failure to prevent editorial criticism.
PEPSICO MISSION STATEMENT Peps PepsiC iCo' o's s over overal alll miss missio ion n is to incr increa ease se the the valu value e of our our shar shareh ehol olde der' r'ss investment. We do this through sales growth, cost controls and wise investment of resources. We believe our commercial success depends upon offering quality and value to our consumers and customers; providing products that are safe, wholesome, economically efficient and environmentally sound; and providing a fair return to our investors while adhering to the highest standards of integrity.
PEPSICO VISION •
To be the best consumer products company. In the eyes of our suppliers customers, consumers, employees and shareholders.
•
Establish a substantial reach advantage
•
Establish cooling penetration advantage
•
Establish close customer relation
•
Establish stranglehold on key accounts.
•
Establish clear lead in towns and villages
•
Faith can move mountains…. Besides men and machinery amongst other things.
AN OVERVIEW INTRODUCTION
PepsiCo is a world leader in convenient foods and beverages, with revenues of about $27 billion and over 143,000 employees. The company consists of the snack businesses of Frito-Lay North America and Frito-Lay International; the beverage businesses of Pepsi-Cola North America, Gatorade/Tropicana North Amer Americ ica a and and Peps PepsiC iCo o Beve Bevera rage ges s Inte Intern rnat atio iona nal; l; and and Quak Quaker er Food Foods s Nort North h Americ America, a, manufa manufactu cturer rer and market marketer er of readyready-toto-eat eat cereal cereals s and other other food food products. PepsiCo brands are available in nearly 200 countries and territories. Many of PepsiCo's brand names are over 100-years-old, but the corporation is relatively young. PepsiCo was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay. Tropicana was acquired in 1998 and PepsiCo merged with The Quaker Oats Company, including Gatorade, in 2001. Peps PepsiC iCo’ o’s s succ succes ess s is the the resu result lt of supe superi rior or prod produc ucts ts,, high high stan standa dard rds s of perfor performan mance, ce, distin distincti ctive ve compe competiti titive ve str strate ategie gies s and the high high integr integrity ity of our people. Our overriding objective is to increase the value of our shareholders' investment through integrated operating, investing and financing activities. Our strategy is to concen concentra trate te our resour resources ces on growin growing g our busine businesse sses, s, both both throug through h intern internal al growth and carefully selected acquisitions. Our strategy is continually fine-tuned to addr addres ess s the the oppo opport rtun unit itie ies s and and risk risks s of the the glob global al mark market etpl plac ace. e. The The corporation's success reflects our continuing commitment to growth and a focus on thos those e bus busines iness ses where here we can can drive rive our our own grow growth th and and cr crea eate te opportunities.
PEPSICO HEADQUARTERS
PepsiCo World Headquarters is located in Purchase, New York, approximately 45 minutes from New York City. The seven-building headquarters complex was designed by Edward Durrell Stone, one of America's foremost architects. The build-ding occupies 10 acres of a 144-acre complex that includes the Donald M. Kendall Sculpture Gardens, a world acclaimed sculpture collection in a garden setting. The collection of works is focused on major twentieth century art, and features work works s by mast master ers s such such as Augu August ste e Rodi Rodin, n, Henr Henrii Laur Lauren ens, s, Henr Henry y Moor Moore, e, Alexander Calder, Alberto Giacometti, Arnaldo Pomodoro and Claes Oldenberg. The garde gardens ns were were origin originall ally y design designed ed by the world world famous famous garden garden planne planner, r, Russell Page, and have been extended by François Goffinet. The grounds are open to the public, and a visitor's booth is in operation during the spring and summer.
CORPORATE CITIZENSHIP
PepsiCo believes that as a corporate citizen, it has a responsibility to contribute to the quality of life in our communities. This philosophy is put into action through support of social agencies, projects and programs. The scope of this support is extensive – ranging from sponsorship of local programs and support of employee volunteer activities, to contributions of time, talent and funds to programs of nati nation onal al impa impact ct.. Each Each divi divisi sion on is resp respon onsi sibl ble e for for its own own givi giving ng prog progra ram. m. Corporate giving is focused on giving where PepsiCo employees volunteer.
PEPSI-COLA NORTH AMERICA AND PEPSICO BEVERAGES INTERNATIONAL
PepsiCo’s beverage business was founded at the turn of the century by Caleb Bradham, a New Bern, North Carolina druggist, who first formulated Pepsi-Cola. Today consumers spend about $33 billion on Pepsi-Cola beverages. Brand Pepsi and other Pepsi-Cola products – including Diet Pepsi, Pepsi-One, Mountain Dew, Slice, Sierra Mist and Mug brands – account for nearly one-third of total soft drink sales in the United States, a consumer market totaling about $60 billion. Pepsi-Cola also offers a variety of non-carbonated beverages, including Aquafina bottled water, Fruitworks and All Sport. In 1992 Pepsi-Cola formed a partnership with Thomas J. Lipton Co. Today Lipton is the biggest selling ready-to-drink tea brand in the United States. Pepsi-Cola also also marke markets ts Frappu Frappucci ccino no readyready-toto-dri drink nk coffe coffee e throug through h a partne partnersh rship ip with with Starbucks. In 2001 SoBe became a part of Pepsi-Cola. SoBe manufactures and markets an innovative line of beverages including fruit blends, energy drinks, dairy-based drinks, exotic teas and other beverages with herbal ingredients. Outside the United States, Pepsi-Cola soft drink operations include the business of Seven Seven-Up -Up Intern Internati ationa onal. l. PepsiPepsi-Col Cola a bevera beverages ges are availa available ble in about about 160 countries and territories. Pepsi-Cola began selling its products internationally in 1934 with its operations in Canada. Operations grew rapidly beginning in the 1950s. In addition to brands marketed in the United States, major products include Mirinda and Pepsi Max. Peps Pepsi-C i-Col ola a Nort North h Amer Americ ica a incl includ udes es the the Unit United ed Stat States es and and Cana Canada da.. Key Key international markets include Argentina, Brazil, China, India, Mexico, Philippines,
Saudi Saudi Arabia Arabia,, Spain, Spain, Thaila Thailand nd and the United United Kingdo Kingdom. m. PepsiC PepsiCo o Bevera Beverages ges International also produces, sells and distributes Gatorade sports drinks as well as Tropicana and other juices internationally. Pepsi-Cola provides advertising, marketing, sales and promotional support to PepsiPepsi-Col Cola a bottle bottlers rs and food food servic service e custom customers ers.. This This includ includes es some some of the world's best-loved and most-recognized advertising. New advertising and exciting promotions keep Pepsi-Cola brands young. The compan company y manuf manufact acture ures s and and sells sells soft soft drink drink conce concentr ntrate ate to PepsiPepsi-Col Cola a bottlers. The company also provides fountain beverage products.
FRITO-LAY NORTH AMERICA AND FRITO-LAY INTERNATIONAL
PepsiCo's snack food operations had their start in 1932 when two separate events took place. In San Antonio, Texas, Elmer Doolin bought the recipe for an unknown food product – a corn chip – and started an entirely new industry. The product was Fritos brand corn chips, and his firm became the Frito Company. That That same same year year in Nash Nashvi villlle, e, Tenn Tennes esse see, e, Herm Herman an W. Lay Lay star starte ted d his his own own busi busine ness ss dist distrib ribut utin ing g pota potato to chip chips. s. Mr Mr.. Lay Lay late laterr boug bought ht the the comp compan any y that that supplied him with product and changed its name to H.W. Lay Company. The Frito Company and H.W. Lay Company merged in 1961 to become Frito-Lay, Inc. Today, Frito-Lay brands account more than half of the U.S. snack chip industry. PepsiC PepsiCo o began began its intern internati ationa onall snack snack food food opera operatio tions ns in 1966. 1966. Today, Today, with with operations in more than 40 countries, it is the leading multinational snack chip company, accounting for more than one quarter of international retail snack chip sales. Products are available in some 120 countries. Frito-Lay North America includes Canada and the United States. Major Frito-Lay International markets includ include e Austra Australia, lia, Brazil Brazil,, Mexico Mexico,, the Nether Netherlan lands, ds, South South Africa Africa,, the United United Kingdom and Spain. Often Often FritoFrito-Lay Lay produc products ts are known known by local local names. names. These These names names includ include e Matuta Matutano no in Spain, Spain, Sabrit Sabritas as and Gamesa Gamesa in Mexico Mexico,, Elma Elma Chips Chips in Brazil Brazil,, Walkers in the United Kingdom and others. The company markets Frito-Lay brands on a global level, l evel, and introduces unique products for local tastes. Major Frito-Lay products include Ruffles, Lay's and Doritos brands snack chips. Other major brands include Cheetos cheese flavored snacks, Tostitos tortilla chips, Santitas tortilla chips, Rold Gold pretzels and SunChips multigrain snacks. Frito-Lay also sells a variety of snack dips and cookies, nuts and crackers.
GATORADE/TROPICANA NORTH AMERICA
Tropicana was founded in 1947 by Anthony Rossi as a Florida fruit packaging business. The company entered the concentrate orange juice business in 1949, registering Tropicana as a trademark. In 1954 Rossi pioneered a pasteurization process for orange juice. For the first time, consumers could enjoy the fresh taste of pure not-from-concentrate 100% Florida orange juice in a ready-to-serve package. The juice, Tropicana Pure Premium, became the company’s flagship product. In 1957 1957 the the name name of the the comp compan any y was was chan change ged d to Trop Tropic ican ana a Prod Produc ucts ts,, headquartered in Bradenton, Florida. The company went public in 1957, was purc purcha hase sed d by Beat Beatri rice ce Food Foods s Co. Co. in 1978 1978,, acqu acquire ired d by Kohl Kohlbe berg rg Krav Kravis is & Roberts in 1986 and sold to The Seagram Company Ltd. in 1988. Seagram purchased the Dole global juice business in 1995. PepsiCo acquired Tropicana, including the Dole juice business, in August 1998. Today the Tropicana brand is available in 63 countries. Principal brands in North America are Tropicana Pure Premium, Tropicana Season’s Best, Dole Juices and Tropicana Twister. Internationally, principal brands include Tropicana Pure Premium and Dole juices along with Frui'Vita, Loóza and Copella. Tropicana Pure Premium is the third largest brand of all food products sold in grocery stores in the United States. Gatorade sports drinks was acquired by the Quaker Oats Company in 1983 and became a part of PepsiCo with the merger in 2001. Gatorade is the first isotonic sports drink. Created in 1965 by researchers at the University of Florida for the school's football team, "The Gators," Gatorade is now the world's leading sport's drink.
QUAKER FOODS NORTH AMERICA
The Quaker Oats Company was formed in 1901 when several American pioneers in oat milling came together to incorporate. In Ravenna, Ohio, Henry D. Seymour and William Heston had established the Quaker Mill Company and registered the now famous trademark. Seymour wanted his product to be a symbol of honesty, integrity and strength. The figures of a man in Quaker clothes became the first registered trademark for breakfast cereal and remains the hallmark for Quaker Oats today. In Cedar Rapids, Iowa, John Stuart and his son, Robert, and their partner, Geor George ge Doug Dougla las, s, oper operat ated ed the the larg larges estt cere cereal al mill mill of the the time time.. Ferd Ferdin inan and d Schu Schuma mach cher er,, know known n as "The "The Oatm Oatmea eall King King," ," had had foun founde ded d Germ German an Mills Mills American Oatmeal Company in 1856. Comb Combin inin ing g The The Quak Quaker er Mill Mill Comp Compan any y with with the the Stua Stuart rt and and Schu Schuma mach cher er businesses brought together the top oats milling expertise in the country as The Quaker Oats Company. The first major acquisition of the company was Aunt Jemina Mills Company in 1926, which is today the leading manufacturer of pancake mixes and syrup. In 1986, 1986, The Quaker Quaker Oats Oats Compan Company y acquire acquired d the Golde Golden n Grain Grain Compan Company, y, producers of Rice-A-Roni. PepsiCo merged with The Quaker Oats Company in 2001. Its products still have the eminence of wholesome, good-for-you food, as envisioned by the company over a century ago.
PEPSICO PRODUCTS: PEPSICO HAS HUNDREDS OF BRANDS. THESE ARE SOME OF THE BEST KNOWN. . Frito-Lay Brands
Lay’s potato chips Lay’s Bistro Gourmet potato chips
Miss Vickie’s potato chips Outside the U.S. Gamesa cookies
Mirinda
Dippas
7UP
Sonric’s sweet snacks
Pepsi Max
Lay’s kettle cooked potato Fandangos corn snacks chips
Hamkas snacks
Wavy Lay’s potato chips
Niknaks cheese sticks
Baked Lay’s potato crisps Quavers potato snacks
Kas Teem Pepsi Limón Pepsi Light
Maui Style potato crisps
Sabritas potato chips
Gatorade Brands
Ruffles potato chips
Twisties cheese snacks
Gatorade thirst quencher
Baked Ruffles potato
Walkers potato crisps
Gatorade Frost thirst
chips
Walkers Square potato
quencher
Ruffles Flavor Rush
snacks
Gatorade Fierce thirst
potato chips
Walkers French Fries
quencher
Doritos tortilla chips
potato sticks
Gatorade Ice thirst quencher
3D’s snacks
Walkers Monster Munch
Gatorade energy bar
Tostitos tortilla chips
Corn snacks
Propel fitness water
Pepsi-Cola Brands
Tropicana Brands
Baked Tostitos tortilla chips Santitas tortilla chips Fritos corn chips Cheetos cheese flavored snacks Rold Gold pretzels Funyuns onion flavored rings
Pepsi-Cola Caffeine Free Pepsi Diet Pepsi Caffeine Free Diet Pepsi Pepsi ONE Wild Cherry Pepsi Pepsi Twist Mountain Dew
Tropicana Pure Premium Tropicana Season’s Best juices Tropicana Smoothies Tropicana Pure Tropics juices Dole juices Outside the U.S.
Sunchips multigrain
Diet Mountain Dew
snacks
Mountain Dew Code Red Copella juices
Cracker Jack candy
Slice
Frui’Vita juices
coated popcorn
Mug
Tropicana 100 juices
Chester’s popcorn
Sierra Mist
Grandma’s cookies
FruitWorks
Munchos potato crisps
Lipton Brisk (Partnership)
Smartfood popcorn
Lipton Iced Tea
Baken-ets fried pork skins (Partnership) Oberto meat snacks
Dole juice drinks
Frito-Lay dips & salsa
FruitWorks juice drinks
Frito-Lay nuts
Aquafina purified drinking
Doritos, Cheetos &
water
Chester’s snack crackers Frappuccino coffee Fritos, Tostitos & Doritos
beverages (Partnership)
snack kits
SoBe juice drinks and teas
Loóza juices and nectars
Quaker Brands
Quaker Oats Quaker instant oatmeal Cap’n Crunch cereal Life cereal Quaker Toasted Oatmeal cereal Quaker 100% Natural cereal Quaker Squares cereal Quisp cereal King Vitaman cereal Quaker Bagged cereals
Outside the U.S.
Quaker Ohs! Cereal
Bocabits wheat snacks
Mother’s cereal
Crujitos corn snacks
Quaker rice cakes Quaker Quakes rice snacks Quaker Chewy granola bars
"DOWN THE MEMORY LANE" History & Advertising highlights
Caleb Bradha Bradham, m, a young young pharma pharmacis cistt from from New Bern, Bern, North North Caroli Carolina, na, 1893: Caleb begins experimenting with many different soft drink concoctions; patrons and friends sample them at his drug store fountain. 1898: One of Bradham's formulations, known as "Brad's Drink," a combination of
carbon carbonate ated d water, water, sugar, sugar, vanilla vanilla,, rare rare oils oils and kola kola nuts, nuts, is rename renamed d "Pepsi-Cola" on Aug. 28. 1902: The instant popularity of this new drink leads Bradham to devote all of his
energy energy to develo developin ping g PepsiPepsi-Col Cola a into into a full-fl full-fledg edged ed busine business ss and he applies for a trademark with the U.S. Patent Office in Washington, D.C. The first Pepsi-Cola Company is formed. 1903: "Doc" Bradham moves the bottling of Pepsi-Cola from his drugstore into a
rented warehouse. In keeping with its origin as a pharmacist's concoction, Bradham's advertising praises his drink as "Exhilarating, Invigorating, Aids Dige Digest stio ion. n."" And And he sell sells s 7,96 7,968 8 gall gallon ons s of sy syru rup p in his his firs firstt year year of operation. 1904: Bradham purchases a building in New Bern known as the Bishop factory
for $5,000 and moves all bottling and syrup operations to this location. Sales increase to 19,848 gallons. 1905: A new logo appears, the first change from the original created in 1898.
PepsiPepsi-Col Cola's a's first first bottli bottling ng franch franchise ises s are establ establish ished ed in Charlo Charlotte tte and Durham, North Carolina.
1906: The logo is redesigned and a new slogan is added: "The Original Pure
Food Drink." The Pepsi-Cola trademark is registered in Canada. There are 15 Pepsi bottling plants in the U.S., and syrup sales reach 38,605 gallons. 1907: Pepsi-Cola Company continues to expand. The bottling network reaches
40 franchises, the trademark is registered in Mexico and syrup sales top 100,000 gallons. 1908: Pepsi-Cola becomes one of the first companies to modernize delivery from
horse-drawn carts to motor vehicles. A total of 250 bottlers are now under contract in 24 states 1909: Automobile racing pioneer Barney Oldfield becomes the first celebrity to
endorse Pepsi when he appears in newspaper ads describing Pepsi as "A bully bully drink…r drink…refr efresh eshing ing,, invigo invigorat rating ing,, a fine fine bracer bracer before before a race." race." The The theme, "Delicious and Healthful" appears, and will be used intermittently over the next two decades. first Pepsi Pepsi-Co -Cola la bottle bottlers' rs' conve conventio ntion n is held held in New Bern, Bern, North North 1910: The first Carolina 1917-18: Price controls hold sugar at 5-1/2 cents per pound during WWI. When
the war ends, so do the price controls. And the price of sugar begins an upward spiral. 1920: Pepsi appeals to consumers with, "Drink Pepsi-Cola. It Will Satisfy You."
The price of sugar on the New York Exchange reaches 26 cents per pound. Bradham gambles on the price going higher, and buys large stocks of sugar. By the end of the year, sugar demand slows on the open market, and the price drops to a catastrophic low of two cents per pound.
1921: The collapse of the sugar market results in enormous financial losses for
Pepsi-Cola Company. Bradham attempts to put the company back on its feet by borrowing cash and selling assets and additional shares of stock. But by the end of the year, the company is insolvent, and the bottling network collapses. Only two plants remain open. 1922: An attempt at reorganization fails as few shares of stock are sold and
investor interest in the new company wanes. 1923: Pepsi-Cola Company is declared bankrupt, and its assets are sold to a
North Carolina concern, Craven Holding Corporation, for $30,000. 1928: After five continuous losing years, the company is reorganized as the
National Pepsi-Cola Company. 1931: U.S. District Court for Eastern District Virginia declares the National Pepsi-
Cola Company bankrupt. Loft, Inc., the giant candy company, buys PepsiCola Company. 1932: The trademark is registered in Argentina. 1934: A landmark year for Pepsi-Cola. The drink is a hit, and to attract even more
sales, Pepsi begins selling a 12-ounce bottle for five cents, the same price charged by its competitors for six ounces. The 12-ounce bottle debuts in Balt Baltim imor ore, e, wher where e it is an inst instan antt succ succes ess. s. The The cost cost savi saving ngs s prov prove e irresistible to depression-worn Americans and sales skyrocket nationally. Pepsi-Cola Company of Canada Limited is formed. Caleb Bradham, the founder of Pepsi-Cola and "Brad's Drink," dies. 1935: Pepsi-Cola operations are moved to Long Island City, New York. The
compan company y sets sets up nation national al territ territori orial al bounda boundarie ries s for the Pepsi Pepsi bottle bottler r franchise system. Compania Pepsi-Cola de Cuba is formed.
1936: Pepsi-Cola Limited of London is established. 94 new U.S. franchises are
granted. Year-end profits reach $2,100,000. 1938: The trademark is registered in the Soviet Union. There are 85 Pepsi-Cola
bottlers operating under franchise agreements across Canada. Having ng surv surviv ived ed the the Gr Grea eatt Depr Depres essi sion on and and a hand handfu full of owne owners rshi hip p 1939: Havi changes, Pepsi is still being sold in a 12-ounce bottle for just a nickel -twice as much refreshment as other soft drinks for the same price. A newspaper cartoon strip, "Pepsi & Pete," introduces the theme "Twice as Much for a Nickel" to increase consumer awareness of the Pepsi value adva advant ntag age. e. Walt Walter er S. Mack Mack Jr. Jr. is elec electe ted d Pres Presid iden entt of Peps Pepsii-Co Cola la Company. Pepsi makes makes advert advertisi ising ng histor history y with with the first first advert advertisin ising g jingle jingle ever ever 1940: Pepsi broadcast nationwide. "Nickel, Nickel," will eventually become a hit record and will be translated into 55 languages. A new, more modern logo is adapted. 1941: In support of America's war effort, Pepsi changes the color of its bottle
crowns to red, white and blue. A Pepsi canteen in Times Square, New York, operates throughout the war, enabling more than a million families to record record messag messages es for armed armed servic services es person personnel nel overse overseas. as. PepsiPepsi-Col Cola a Company, until now a subsidiary of Loft Incorporate, is merged with Loft. Since the Pepsi brand name has become more famous than that of its owner, the parent company's name is changed to Pepsi-Cola Company. Pepsi's stock is traded on the New York Stock Exchange for the first time. 1943: The "Twice as Much" advertising strategy expands to includes the theme,
"Bigger "Bigger Drink, Better Taste." Taste." Sugar is again rationed rationed during World War II.
To counter the effects of rationing, Mack purchases a sugar plantation in Cuba, which proves to be a highly profitable venture. 1947: International profits reach $6,769,000. Pepsi moves into the Philippines
and Middle East. 1948: Pepsi-Cola's corporate headquarters moves from Long Island City, New
York, to Midtown Manhattan. Pepsi is produced in cans for the first time. "Why Take Take Less Less When When Peps Pepsi's i's Best Best?" ?" is adde added d to "Twi "Twice ce as Much Much"" 1949: "Why advertising. 1950: "More Bounce to the Ounce" becomes the new Pepsi theme as changing
soft drink economics force Pepsi to raise prices to competitive levels. Alfred N. Steele becomes President and CEO of Pepsi-Cola. His wife, Hollywood movie star Joan Crawford, is instrumental in promoting the company's product line. 1953: Americans become more weight conscious, and a new strategy based on
lowe lowerr calor aloric ic conte ontent nt of Peps epsi is imple mpleme ment nte ed wit with "The "The Light ight Refreshment" campaign. "The Light Light Refres Refreshme hment" nt" evolv evolves es to incorp incorpora orate te "Refre "Refreshi shing ng Withou Withoutt 1954: "The Filling." 1956: 149 Pepsi-Cola bottling plants are operating in 61 countries outside the
U.S. 1958: Pepsi struggles to enhance its brand image. Sometimes referred to as "the
kitchen cola," as a consequence of its long-time positioning as a bargain brand, Pepsi now identifies itself with young, fashionable consumers with
the "Be Sociable, Have a Pepsi" theme. A distinctive "swirl" bottle replaces the earlier straight-sided bottle. 1959: Soviet Premier Nikita Krushchev and U.S. Vice President Richard Nixon
meet in the soon-to-be-famous "kitchen debate" at an international trade fair in Moscow. The meeting, over cups of Pepsi, is photo-captioned in the U.S. as "Krushchev Gets Sociable." Pepsi furthe furtherr refine refines s its target target audien audiences ces,, recogn recognizi izing ng the increa increasin sing g 1961: Pepsi import importanc ance e of the younge younger, r, post-w post-war ar genera generatio tion. n. "Now "Now It's It's Pepsi, Pepsi, For Those Who Think Young" defines youth as a state of mind as much as a chronological age, maintaining the brand's appeal to all market segments. 1963: In one of the most significant demographic events in commercial history,
the the postost-wa warr bab baby boo boom emer emerge ges s as a socia ociall and mark marke etpla tplace ce phenomenon. Pepsi recognizes the change, and positions Pepsi as the brand belonging to the new generation -- The Pepsi Generation. "Come Alive! You're in the Pepsi Generation" makes advertising history. It is the first time a product is identified, not so much by its attributes, as by its consumers' lifestyles and attitudes. 1964: A new product, Diet Pepsi, is introduced into Pepsi-Cola advertising.
1965 •
PepsiCo, Inc. was founded by Donald M. Kendall, president
and and Chie Chieff Exec Execut utiv ive e offic officer er of Peps Pepsi-C i-Col ola a and and Herm Herman an W. Lay, 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
Comp Compan any, y, foun founde ded d by Elme Elmerr Dool Doolin in in 1932 1932,, and and the the H. W. Lay 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. MAJOR PRODUCTS
Pep Pepsi-Co i-Colla Comp ompany -
Peps epsi-Co i-Cola la (for (form mulat ulated ed in 1898 898), Diet Diet Pep Pepsi (1964) and Mountain Dew (introduced by Tip Corporation in 1948).
Frito-Lay, Inc. -
Fritos brand co corn ch chips (c (created by El Elmer Do Doolin in 1932), Lay's brand potato chips (created by Herm Herman an W. Lay Lay in 1938 1938), ), Chee Cheeot otos os bran brand d cheese cheese flavore flavored d snacks snacks (1948) (1948),, Ruffle Ruffles s brand brand potat otato o chips ips (195 (1958) 8) and Rold Rold Gold old bran rand pretzels (acquired 1961). Moun Mounta tain in Dew Dew laun launch ches es its its firs firstt camp campai aign gn "Yahoo Mountain Dew ... it'll tickle your innards."
1966 •
Doritos brand tortilla chips are introduced. They are destined to
become the most popular snack chip in the U.S. •
Pepsi enters Japan and Eastern Europe.
1967 •
Pepsi Generation advertising,
"COME ALIVE! YOU ARE IN THE PEPSI GENERATION" •
Campaign that named and claimed a whole generation
1963-67
Introduces a new theme: PepsiCo stock splits two-for-one.
"TASTE THAT BEATS THE OTHERS COLD PEPSI POURS IT ON!"
1968 •
Nort North h Amer Americ ican an Van Van Line Lines s (NAV (NAVL) L),, a prem premie ierr trans transpo port rtat atio ion n
comp compan any, y, join joins s Peps PepsiC iCo. o. NAVL NAVL rema remain ins s a stro strong ng cont contrib ribut utor or to PepsiCo until it is divested in 1984.
1967 •
Bold, modern Pepsi-Cola packaging using red, white and blue is
introduced.
"YOU 'VE GOT A LOT TO LIVE, PEPSI'S GOT A LOT TO GIVE", becomes the advertising theme. •
Frito-Lay introduces Funyuns brand onion flavored snacks.
Mountain Dew changes its slogan to
"GET THAT BAREFOOT FEELING' DRINKIN' MOUNTAIN DEW".
1970 •
PepsiCo sales pass the $1 billion mark. The company has 36,000
employees. •
PepsiCo moves from New York City to new world headquarters in
Purchase, N.Y. The new corporate headquarters feature a building by one of Americ America's a's foremo foremost st archite architects cts,, Edward Edward Durrel Durrelll Stone Stone (1902(19021978 1978), ), set set on a camp campus us of 144 144 acre acres s amid amid an outd outdoo oorr scul sculpt ptur ure e garden. •
Frito-Lay begins a program of expansion. Over the next decade, the
company opens, on average, more than one new plant a year. •
W.C. Fritos is introduced as Frito-Lay's new advertising mascot.
•
Wilson Wilson Sportin Sporting g Goods, Goods, a top name name in sports sports equipm equipment ent,, joins joins
PepsiCo. It is divested in 1985. •
Pepsi introduces the industry's first two-liter bottle.
•
Pepsi is the first company to respond to consumer preference with
lightweight, recyclable, plastic bottles.
1971 •
PepsiCo Chief Executive Officer Donald M. Kendall assumes the
position of chairman of the Board of Directors on the retirement of
Herman W. Lay. Lay maintains an active role in the corporation until his death December 6, 1982. •
Andrall E. Pearson was appointed president of PepsiCo, a position
he held until his retirement in 1984.
1972 •
Moun Mounta tain in Dew, Dew, acqu acquir ired ed by Peps Pepsi-C i-Col ola a in 1964 1964,, swit switch ched ed its
advert advertisi ising ng and packag package e graphi graphics cs from from hillbi hillbillie llies s to action action-or -orien iented ted scenes. Sales climb and Mountain Dew became one of the 10 bestselling soft drinks in the United States. •
Don Kendal Kendalll announ announce ced d agreem agreement ent making making PepsiPepsi-Col Cola a the first first
foreign product sold in the then U.S.S.R. PepsiCo was given exclusive rights to import Stolichnaya Russian vodka in the U.S.
1973 •
Foods International, later called PepsiCo Foods International (PFI)
and subsequently named Frito-Lay International, was established to market snack foods around the world. Individualism flourishes, Pepsi advertising picked up on the movement, plays it back as
"JOIN THE PEPSI PEOPLE, FEELIN'FREE", FEELIN'FREE", The third Mountain Dew slogan appears
"PUT A LITTLE YAHOO IN YOUR LIFE".
1974 •
PepsiCo sales pass the $2 billion mark.
•
Pepsi-Cola becomes the first American consumer product to be
produced, marketed and sold in the former Soviet Union. •
PepsiCo has 49,000 employees.
•
Pepsi Pepsi Light, Light, with with a distin distincti ctive ve lemon lemon taste, taste, is introd introduce uced d as an
alternative to traditional diet colas.
"HELLO SUNSHINE" becomes the slogan for Mountain Dew.
1976 •
The Pepsi Challenge, introduced in Dallas, Tex. in 1975, becomes
a national campaign. Around the nation, consumers select Pepsi-Cola as the best tasting cola. •
PepsiCo adopts Code of Worldwide Business Conduct.
•
Pepsi-Cola becomes the single largest selling soft drink brand sold
in U.S. supermarkets. Advertising campaign is:
"HAVE A PEPSI DAY!" PUPPIES." becomes one of America's best-loved ads.
1977
•
PepsiCo acquires Pizza Hut, Inc. Pizza Hut was found in
1958 by Dan and Frank Carney. It is spun off along with Taco Bell and KFC businesses as Tricon Global Restaurants, Inc. in 1997.
•
PepsiCo passes the $3 billion mark in sales.
•
PepsiCo stock splits three-for-one.
•
Taco Bell is acquired. Taco Bell was established in the mid 1960s
1978
by Glen Bell. It is i s spun off along with Pizza Hut and KFC businesses as Tricon Global Restaurants, Inc. in 1997.
1979 •
Open Openin ing g of Peps PepsiC iCo o Rese Resear arch ch and and Tech Technic nical al Cent Center er in
Valhalla, N.Y. •
PepsiCo reaches $5 billion in sales.
•
PepsiCo's international snack food operations continue to grow. It is
now larger than Frito-Lay at the time of its i ts merger with Pepsi-Cola. Pepsi's new campaign:
"CATCH THAT PEPSI SPIRIT!" reflects the upbeat attitude of an increasingly positive America.
"HELLO SUNSHINE" campaign remains basically intact, theme line is i s changed to
"REACH FOR THE SUN, REACH FOR MOUNTAIN DEW" •
Pepsi introduces twelve-pack cans.
1980 •
PepsiCo Food Service International (PFSI) is formed to focus on
overseas development of restaurants. •
PepsiCo now has 111,000 employees.
•
First presentation of the international Donald M. Kendall Bottler-of-
the-Year Award. •
Frito-Lay begins nationwide roll-out of Grandma's brand cookies.
•
Garden designer Russell Page (1906-1985) begins to extend the
gardens at PepsiCo.
•
Pepsi is #1 in sales in take-home market.
•
PepsiCo passes $7 billion in sales.
•
Tostitos brand crispy round tortilla chips are introduced by Frito-
1981
Lay. •
PepsiCo Fitness Center is completed; making PepsiCo one of the
most advanced companies in the area of employee health and fitness. •
Frito-Lay begins nutritional labeling on a national basis.
"PEPSI'S GPOT YOUR TASTE FOR LIFE!"
was the new campaign. s •
PepsiC PepsiCo o and China China reach reached ed an agreem agreement ent to manufa manufactu cture re soft soft
drinks, with production beginning in 1982. •
PepsiC PepsiCo o launch launched ed PepsiC PepsiCo o Food Food System Systems s (PFS), (PFS), its restau restauran rantt
supply company. PFS was sold to AmeriServe in 1997.
1982 •
Pepsi Free and Diet Pepsi Free, the first major brand caffeine-free
colas, are introduced.
•
Inauguration of the first Pepsi-Cola operation in China.
•
The Bott Bottle lerr Hall all of Fame Fame is esta establ blis ish hed to reco recogn gniz ize e the the
1983
achievement and dedication of international bottlers.
1984 •
PepsiCo is restructured to focus on its three core businesses: soft
drinks, snack foods and restaurants. Transportation and sporting goods businesses are sold. •
Wayne Calloway becomes president of PepsiCo.
•
Diet Pepsi is reformulated with 100% NutraSweet.
Slice and Diet Slice, the first major soft drinks with fruit juice, are introduced.
•
Pepsi-Cola makes advertising history as Michael Jackson and his
brothers usher in a new generation of Pepsi-Cola advertising in two of the most most eagerly eagerly-aw -await aited ed telev televisio ision n commer commercia cials ls featur featuring ing music music marketing. Pepsi becomes "The Choice of a New Generation." •
Herman W. Lay Award of Excellence established at Frito-Lay to
recognize world-class selling excellence.
1985 •
PepsiCo is now the largest company in the beverage industry. The
company has revenues of more than $7.5 billion, more than 137,000 employees. •
PepsiPepsi-Col Cola a produc products ts are availa available ble in nearly nearly 150 count countrie ries s and
terr territ itor orie ies s arou around nd the the worl world. d. Snac Snack k food food oper operat atio ions ns are are in 10 international markets. •
Frito-Lay expands into new headquarters in Plano, Tex.
•
PepsiCo's first line of sweet snacks, Sonrics, is added in Mexico.
•
The cola war takes "one giant sip for mankind," when a Pepsi
"space can" is successfully tested aboard the space shuttle. •
Pepsi's successful "Entertainment Marketing" strategy is extended,
with singers Lionel Richie and Tina Turner and actor Michael J. Fox, among others. •
1986
Pepsi distributes products in China.
•
Wayne Calloway becomes chairman of the Board of Directors and
chief executive officer in May when Donald M. Kendall retires. •
The The corp corpor orat atio ion n is reor reorga gani nize zed d and and dece decent ntra raliz lized ed.. Beve Beverag rage e
operations are combined under PepsiCo Worldwide Beverages; snack food operations are combined under PepsiCo Worldwide Foods. •
Shareholders approve reincorporating of PepsiCo in North Carolina.
•
PepsiCo stock splits three-for-one.
•
PepsiCo purchases Kentucky Fried Chicken, the leader in the quick
serv servic ice e chic chicke ken n mark market et.. Colo Colone nell Harla Harland nd Sand Sander ers s foun founde ded d KFC. KFC. Colonel Sanders began franchising the company in 1952. KFC is spun off along with Pizza Hut and Taco Bell businesses as Tricon Global Restaurants, Inc. in 1997. •
PepsiCo purchases 7-Up International, the third largest franchise
soft drink operation outside the United States. •
PepsiCo passes $10 billion in sales.
•
PepsiCo is listed on the Tokyo stock exchange.
•
Chester Cheetah makes his prime-time television debut for Frito-
Lay with a fully animated commercial for Cheeotos cheese flavored snacks. •
"Dew it Country Cool, " becomes new slogan for Mountain Dew.
Michael Jackson is signed to a second contract to appear in Pepsi advert advertisi ising, ng, this this time time as a solo solo perfor performer mer.. Diet Diet Pepsi Pepsi's 's "Apart "Apartmen mentt
10G," starring Michael J. Fox, is the commercial of the year and an instant classic. •
Diet Pepsi gets a new logo.
Get the logo •
Pepsi-Cola acquires Mug Root Beer.
•
Peps Pepsii-Co Cola la
spon sponso sors rs
the the
firs firstt
West Wester ernn-pr prod oduc uced ed
cons consum umer er
commercial in the Soviet Union, appearing during the Goodwill Games. •
PepsiCo Board of Directors visits the People's Republic of China to
mark the opening Pepsi's second bottling plant in China. •
Frito-Lay introduces Santitas brand restaurant style tortilla tortil la chips.
1987 Pepsi-Cola Company moves to new headquarters in Somers, N.Y. •
"Mustang," a Diet Pepsi commercial, becomes the first ad ever to
appear in a home video cassette. The cassette, "Top Gun," becomes the largest-selling video ever. •
Pepsi sponsors tours of major music stars, including Miami Sound
Machine, David Bowie and Tina Turner. Frito-Lay pioneers the use of hand-held computers for marketing.
1988 •
Pepsi-Cola Company is reorganized along geographic lines - East,
West, South and Central regions - each with its own president and senior management staff.
•
Pepsi-Cola International enters a landmark joint venture agreement
in India. •
Renewe Renewed d accord accord with with the Soviet Soviet Union Union extend extends s Pepsi PepsiCo Co trade trade
relationships. •
Hostess Frito-Lay, a major new partnership in Canada, is formed
with Hostess Foods in Canada. •
"Chase," a four-part Pepsi ad featuring Michael Jackson in his first-
ever ever epis episod odic ic comm commer erci cial al,, airs airs durin during g the the Gr Gram ammy my awar awards ds and and becomes the most-watched commercial in advertising history. •
Peps Pepsi-C i-Col ola a runs runs first first paid paid adve adverti rtise seme ment nt on Sovi Soviet et TV durin during g
"Pozner in America," a joint US-Soviet production. •
Worldwide retails sales of Doritos brand tortilla chips hit $1 billion. It
is the world's largest selling snack chips brand. •
Pepsi and Michael Jackson raise $600,000 with a special New York
City concert benefiting the United Negro College Fund.
1989 •
PepsiC PepsiCo o introd introduce uces s ShareP SharePowe owerr Stock Stock Option Option progra program m for all
employees, becoming the first large corporation to award stock options to virtually all full-time employees. •
PepsiCo acquires Walkers Crisps and Smith Crisps, two of the
United Kingdom's leading snack food companies. •
PepsiCo acquires Smartfood ready-to-eat popcorn business.
•
PepsiCo named one of Fortune Magazines top 10 "Most Admired
Corporations." •
Frito-Lay is decentralized and reorganized along geographical lines.
1990 PepsiCo enters top 25 of Fortune 500 ranking with sales of $15.4 billion, it is number 23. The company has more than 300,000 employees. •
PepsiCo stock splits three-for-one.
•
PepsiCo named one of Fortune Magazine's top 10 "Most Admired
Corporations" for the second year in a row. •
PepsiCo acquires a controlling interest in Gamesa, Mexico's largest
cookie company. •
Frito-Lay introduces its Light line of low-oil snacks.
•
Frito-Lay advertising for Doritos brand tortilla chips features talk
celebrity Jay Leno. •
Popular teen stars Fred Savage and Kirk Cameron appear in Pepsi
advertising, while Ray Charles, joins Diet Pepsi vets Billy Crystal and Michael Michael J. Fox in "The Right Ones" campaign. campaign. During the SuperBowl, SuperBowl, star star quarte quarterba rback ck Joe Joe Montan Montana a offers offers a specia speciall taste taste challe challenge nge to celebrities appearing in competitive commercials. •
PepsiCo signs the largest commercial trade agreement in history
with the Soviet Union, expecting sales in the U.S.S.R. to double by the end of the century.
1991
•
Profits exceed $1 billion for the first time.
•
PepsiCo named one of Fortune Magazine's top 10 "Most Admired
Corporations" for the third year in a row. •
Peps PepsiCo iCo acqu acquir ires es an equi equity ty inte intere rest st in Wede Wedell SA, SA, the the lead leadin ing g
manufacturer of chocolate and confectionery in Poland. The new joint venture will be a entrance into the Eastern European snack market. Snacks now include operations in 23 countries. •
Pep Pepsi-Co i-Colla intr introd odu uces a new logo logo,, its its eigh eighth th in 93 years ears..
Advertising features rap singer MC Hammer. •
Peps Pepsi-C i-Col ola a form forms s joint joint vent ventur ure e with with Thom Thomas as J. Lipt Lipton on Co. Co. to
develop and market tea-based drinks. •
Frito-Lay launches Sunchips, its first multigrain snack.
•
Frito-Lay introduces Cheeotos Paws.
•
Frito-Lay introduces Tostitos brand Restaurant-Style tortilla chips.
•
Ray Charles teams up with the Uh-Huh Girls. The slogan for Diet
Pepsi is modified to "You Got The Right One Baby, Uh-Huh!"
1992 •
PepsiCo named one of Fortune Magazine's top 10 "Most Admired
Corporations" for the fourth year in a row. •
PepsiCo purchases an equity position in Carts of Colorado, Inc., the
lead leadin ing g
manu manufa fact ctur urer er
and and
equipment. It is sold in 1995.
mark market eter er
of
mobi mobile le
merc mercha hand ndis isin ing g
•
PepsiCo purchases an equity interest in California Pizza Kitchen. It
is sold in 1997. •
Pepsi-Cola starts distributing Ocean Spray Cranberries, Inc. single
serve juice products. •
Pepsi-Cola introduces new "Gotta Have It" advertising theme and
launches the "Gotta Have It" card. •
Pepsi-Cola implements the "Right Side Up" philosophy; where the
customer and front line employees are at the top of the organization. •
Frito-Lay and General Mills agree to merge snack food businesses
in Europe. •
Frito-Lay introduces reformulation of Doritos brand Nacho Cheesier
flavored tortilla chips. •
Frito-Lay presents network Lay's/Ruffles advertising -- the first in 10
years. •
Frito-Lay enlists George Foreman for Doritos Dori tos advertising.
1993 •
Pepsi introduces new slogan "Be Young - Have Fun - Drink
Pepsi." •
Pepsi-Cola begins distribution of Lipton's line of ready-to-drink teas
nationwide. •
FritoFrito-Lay Lay launch launches es new Dorito Doritos s brand brand Tortil Tortilla la Thins. Thins. Within Within five five
months of launch, Tortilla Thins breaks into the ranks of the 10 largest-
selling snack chips in the U.S.,TWA, Northwest Airlines offer PepsiCola. •
Afte Afterr a 27-y 27-yea earr abse absenc nce, e, Peps Pepsii retu return rns s to Broa Broadw dway ay with with the the
lighting of a spectacular new neon sign in Times Square. •
Both PepsiCo beverages and snack food operating profits pass
the$1billion mark. •
Pepsi-Cola introduces freshness dating.
•
Pepsi-Cola begins test marketing of Ocean Spray Lemonade and
Ocean Spray Splash, a fruit sparkler. •
Frito-Lay introduces Baked Tostitos brand Tortilla Chips.
•
Pepsi introduces "The Cube," an innovative 24-can multipack, that
satisfies growing consumer demand for convenient large size soft drink packaging. •
PepsiCo acquires East Side Mario's Restaurants Inc. It sells the 40
units in 1997. •
PepsiCo acquires D'Angelo Sandwich Shops chain, which is sold in
1997. •
Pepsi-Cola International introduces Pepsi Max, a soft drink with
unique blend of sweeteners that delivers maximum cola taste in a nosugar product.
1994
•
Frito-Lay nationally launches Wavy Lay's Original and Au
Gratin flavors. •
Pepsi-Cola introduces Aquafina bottled water into test market.
•
Pepsi-Cola is first major soft drink maker to begin producing and
distributing its product in Vietnam. •
Peps Pepsi-C i-Col ola a laun launch ches es its its spor sports ts drink drink All All Spor Sportt and and a nati nation onal al
advertising campaign with basketball great Shaquille O'Neal. •
PepsiPepsi-Col Cola a Intern Internatio ational nal acquir acquires es Indian Indian compan company, y, its first first big
bottling plant in Bombay. •
Doritos is introduced to the United Kingdom, marking the creation of
a new "global brand." •
Frito-Lay Frito-Lay and K.C. Masterpiece Masterpiece Original Original Brand Barbecue Barbecue Sauce Sauce
launch launches es Lay's Lay's Master Masterpie piece ce brand brand Barbec Barbecue ue Flavo Flavorr Potato Potato Chips, Chips, marking the first time Lay's has entered into a co-branding agreement. •
Pep PepsiCo iCo
and
Sta Starbuc rbuck ks
form form the the
Nort North h
Ameri mericcan Coff Coffee ee
Partnership to jointly develop ready-to-drink coffee beverages. •
Pepsi-Cola licenses the Citrus Hill trademark from The Procter &
Gamble Co. to launch a line of fountain juices and drinks. •
China gets cheese-less Cheeotos, the first time a major snack-food
brand will be produced in China for Chinese tastes. •
Reba McEntire becomes first celebrity to appear nationally on a
Frito-Lay package.
•
Frito-Lay nationally launches new baked Rold Gold Fat Free Thins
Pretzels, the first fat free reduced sodium pretzel introduced by the company.
1995 •
Wake Wake Fore Forest st Univ Univer ersi sity ty name names s its its Scho School ol of Busi Busine ness ss and and
Accountancy in honor of Wayne Calloway. •
PepsiCo sales reach $30.4 billion. There are 470,000 employees
worldwide, making PepsiCo the third largest employer. •
Pepsi-Cola introduces "Nothing else is a Pepsi" themeline.
•
Pepsi-Cola is top ad scorer in SuperBowl.
•
Mountain Dew sponsors the Grammy Awards. Themeline is "Been
There, Done That, Tried That." •
The The Peps Pepsii Lipt Lipton on Tea Tea Part Partne ners rshi hip p debu debuts ts new new ad camp campai aign gn
emphasizing "There's only one Original." •
Pepsi-Cola introduces Smooth Moos Smoothies, a line of low-fat
dairy shakes. •
7Up International launches 7UP Ice Cola, a new clear cola.
•
Peps Pepsi-C i-Col ola a Inte Intern rnat atio iona nall and and Kraf Kraftt Food Foods s Inte Intern rnat ation ional al join jointl tlyy
announce the formation of "Maxwell House Beverage Company." The new company will market ready-to-drink canned coffee in Asia. •
Tennis
superst rstar
Andre
Agassi
will ill
prom romote
Pepsi
Max
internationally and Mountain Dew in the U.S. •
The The Nort North h Amer Americ ican an Coff Coffee ee Part Partne ners rshi hip p betw betwee een n Peps Pepsi-C i-Col ola a
Comp Compan any y and and Star Starbu buck cks s Coff Coffee ee Comp Compan any y intr introd oduc uces es Maza Mazagr gran an carbonated coffee beverage into test market.
•
In France, Pepsi introduces a line of non-carbonated fruit-based
beverages called "The Radical Fruit Company." •
FritoFrito-Lay Lay aggres aggressiv sively ely expan expands ds its low/no low/no-fa -fatt snack snack segme segment. nt.
Baked Lays is introduced. •
Frito-Lay tests Baked Tostitos, Rold Gold Fat Free Pretzels, Ruffles
Reduced Fat Potato Chips and Tostitos fat-free salsas and black bean dip brands. Campaign line is "Taste the fun, not the fat." •
FritoFrito-Lay Lay and Sara Sara Lee Bakery Bakery announ announce ce allian alliance ce to develo develop, p,
manufacture and distribute baked goods. The single-serve products will carry the Sara Lee name and be distributed by Frito-Lay. •
Frito-Lay launches World Wide Web site: http://www.fritolay.com.
•
PepsiC PepsiCo o will will introdu introduce ce Lay's Lay's brand brand potato potato chips chips in 20 market marketss
throughout the world.
1996 •
Roger Enrico succeeds Wayne Calloway as chief executive
officer. •
"Pepsi Stuff" unveiled.Consumers save points for merchandise.
•
PepsiCo stocks splits two-for-one.
•
Pepsi-Cola Pepsi-Cola domestic domestic and internatio international nal operations operations combined into
Peps Pepsii-Co Cola la
Comp Compan any. y.
Inte Intern rnat atio iona nall
and and
dome domest stic ic
snac snack k
food food
operations combined into one business unit called Frito-Lay Company.
•
Mounta Mountain in Dew launch launches es a massiv massive e beeper beeper networ network k called called "The "The
Mountain Dew Extreme Network." PepsiCo, Inc. and Lucasfilm Ltd. announce announce the largest largest promotiona promotionall alliance alliance in entertainm entertainment ent history, history, linking existing and future Star Wars series with PepsiCo beverage, snack foods and restaurant brands worldwide. •
Pep Pepsi-Co i-Colla
and
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esta establ blis ish h
a
part partne ners rsh hip
to
devel evelop op
internationa internationall programmin programming, g, cross promotions promotions,, marketing marketing tie-ins tie-ins and special events. •
Filming of the world's first commercial in space. Cosmonauts shoot
a large blue Pepsi can in orbit outside the MIR Space station. •
PepsiPepsi-Col Cola a is exclu exclusiv sive e soft soft drink drink suppl supplier ier to Canadi Canadian an Airline Airlines. s.
Pepsi is at Marriott Hotels as well. •
International retail sales of Doritos brand tortilla chips exceed $250
million, global expansion nears 20 countries. •
Frito-Lay announces national launch of Reduced Fat Doritos brand
Tortilla Chips.
1997
PepsiCo announces plans to spin off its restaurant businesses as an inde indepe pend nden entt publ public icly ly-t -tra rade ded d comp compan any, y, sell sell its its food food dist distrib ribut utio ion n company and focus on its core beverage and snack food businesses. The spin-off is completed October 6, 1997. Shareholders receive one share in the new restaurant company, Tricon Global Restaurants, Inc., for every 10 shares they hold in PepsiCo, Inc. PepsiCo is now a $20 billion company with approximately 140,000
employees worldwide. PepsiPepsi-Col Cola a introd introduc uces es new advert advertisi ising ng campai campaign gn with with the theme theme "Generation Next." Pepsi-Cola North American bottling operations become a separate unit called The Pepsi-Cola Bottling Co. National roll-out of Aquafina bottled water. Frito-Lay announces plans to buy the 104-year-old snack, Cracker Jack, a candy-coated mix of popcorn and peanuts from Borden Foods Corp.
1998 Pepsi-Cola celebrates 100th Anniversary with first worldwide bottlers
conference, held in Hawaii. The event is held during the same time as first bottler’s conference. Frito-Lay introduces Doritos 3D’s Tortilla Chips, a triangle-shaped chip. Pepsi-Cola introduces two-liter plastic bottle with built-in "grip handle" that makes it easier to grip and pour." PepsiCo Chairman and CEO Roger A. Enrico donates his salary to provide scholarships for children of PepsiCo employees. NAIC’s annual top 100 stock survey of America’s investment clubs shows PepsiCo, Inc. as the most popular stock for 1998. Peps Pepsii intr introd oduc uces es new new look look calle called d the the "Glo "Globe be"" whic which h prom promin inen entl tlyy features a 3-dimensional Globe against a blue ice backdrop. PepsiCo is named by the Council of Economic Priorities (CEP) to its honor roll of socially responsible companies. PepsiPepsi-Col Cola a announ announces ces breakt breakthro hrough ugh produc product: t: Pepsi Pepsi One, One, greatgreattast tastin ing, g, oneone-ca calor lorie ie cola cola is first first in Unit United ed Stat States es with with newl newly y FDA FDA approved sweetener Sunett®. Former Chairman and CEO Wayne Calloway dies on July 9th. He
joined PepsiCo in 1967. PepsiCo acquires Tropicana Products from Seagram Company Ltd., the biggest acquisition ever undertaken by PepsiCo. Tropicana was founded in 1947 by Anthony Rossi. Its major brand is Tropicana Pure Premium Juices. The Frito-Lay Company purchases Smith’s Snackfood Company in Australia from United Biscuits Holdings, Inc. (Purchase completed on Aug. 26.) In November the PepsiCo Board of Directors authorizes the company to convert a significant portion of its $7 billion company-owned bottling operations, The Pepsi Bottling Group (PBG) into public ownership. PepiCo signs groundbreaking 10-year agreement with the YMCA of the USA through which both Pepsi-Cola and Frito-Lay will develop national and local marketing programs to support the organization’s many charitable efforts. Frito-Lay becomes the snack chip leader in South and Central America as it enters a joint venture with Empreseas Polar SA of Venezuela. Frito-Lay acquires Barcel, Chile’s second-largest snack company. Frito-Lay acquires an expanded state in Tasty Foods Egypt. Pepsi and Frito-Lay media buying is consolidated. PepsiCo products contribute more than any other packaged goods company
to
the
sales les
growth
in
U.S.
supermark rke ets,
mass
merchandisers and chain drug stores.
1999 In March 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 offerings in stock market history.
Tropicana Products, Inc. acquires Alimentos del Valle S.A., one of Spain’s leading chilled juice and soup companies. Tropicana introduces two new calcium-fortified Pure Premium juices: Pure Pure Premiu Premium m Grove Grovesta stand nd Calciu Calcium m and Pure Pure Premiu Premium m Ruby Ruby Red Grapefruit Calcium. Pepsi launches "The Joy of Cola" advertising campaign. Steve Reinemund named president of PepsiCo. Halli Hallie e Eise Eisenb nber erg g "Joy "Joy of Cola Cola"" comm commer erci cial als s name named d #6 of "Fift "Fiftyy 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. Tropicana juices are entering the huge India market for the first time. Spearheaded by Tropicana Asia Pacific, orange juice will appear in the New Delhi and Bangalore markets. Peps PepsiC iCo o name named d to FORT FORTUN UNE E Maga Magazi zine ne’s ’s list list of "The "The Fift Fifty y best best companies for Asians, Blacks and Hispanics." Frito-Lay introduces a new corporate logo. West Westcches hester ter
Arts rts
Coun Counc cil
honor onors s
Pep PepsiCo iCo
for for
"Out "Outst sta andin nding g
contributions to the arts and the community." Frito-Lay signs agreement with Oberto Sausage to be the exclusive distributor of the natural-style jerky. Worth Magazine names PepsiCo to its "Most Generous Companies" list.
2000 Pepsi-Cola Co. launches new beverage line, FruitWorks, a five flavor
line of fruit drinks. Tropicana’s Pure Premium Multivitamin juice voted "Best Product of the Year " in the Total Soft Drink and Juice category in France. Hallie Eisenberg, star of Pepsi commercials, receives Young Artist Special Achievement Award. Peps Pepsi-C i-Col ola a revi revive ves s its its "Pep "Pepsi si Chal Challe leng nge" e" adve advert rtis isin ing g camp campai aign gn.. Challenge includes Pepsi One and Diet Coke as well as regular cola. PepsiPepsi-Col Cola a teams teams up with Yahoo Inc., Inc., the bigges biggestt web naviga navigatio tion n company, in a multimedia marketing campaign aimed at teens and young adults. Lipton’s Iced Tea and Lipton Brisk sign three-year deal to become "Official Iced Tea of the PGA Tour." Mountain Dew debuts new Spanish language commercial, "Arcade." Tropicana, in a joint venture with Galaxy Foods Co., will introduce an icy smoothie soy milk-and-fruit drink, made with juice, fruit puree along with soymilk and soy protein. Pepsi and Warner Music introduce "Choose Your Music" promotion. PepsiCo, Inc. renewed agreement to sell Pepsi-Cola, Mountain Dew and other Pepsi beverages at Tricon Global Restaurants Inc.’s US locations for 12 years. Aquafina brand bottled water becomes the best-selling brand of singleserve bottled water in US retail channels. Pepsi donates $100,000 to Michael J. Fox Foundation for Parkinson’s Research. The actor has appeared in the Award Winning Diet Pepsi commercial "Apartment 10G." The PepsiCo Foundation has endowed a $200,000 fellowship fund at Harvard in the name of the late Pepsi-Cola executive Naylor Fitzhugh.
FORTUN FORTUNE E magazi magazine ne names names Pepsi PepsiCo Co one of Americ America’s a’s "50 Best Best Companies for Minorities." Peps PepsiC iCo o pres presen ents ts Lead Leader ersh ship ip gift gift of $500 $500,0 ,000 00 to Urba Urban n Leag League ue Breakthrough! Campaign. PepsiS PepsiStuf tuff.c f.com, om, a web site site for merch merchand andise ise,, discou discounts nts and digita digitall musi music c files files from from bigg bigges estt name names s in movi movies es,, musi music, c, vide video o game games, s, apparel and sports is launched in joint promotion with Yahoo. Global Finance magazine names PepsiCo to its list of The World’s Best Global Companies. Pepsi teams up with Yahoo! in a Spanish back-to-school contest called "Tu Sabor, Tu Futuro" ("Your Taste, Your Future"). Nationwide contest offers opportunities to win $10,000 college scholarships. Minority MBA magazine names PepsiCo one of "Ten Top Companies for Minority MBAs". Dawn Hudson, senior vice-president, strategy and marketing for PepsiCola Cola Nort North h Amer Americ ica, a, rank ranked ed amon among g 50 most most powe powerf rful ul peop people le in marketing by Ad Age. Pepsi-Cola launches "Sierra Mist" a caffeine-free, lemon/lime soda. FORTUNE magazine names Indra Nooyi, PepsiCo Inc.’s CFO as one of "The 50 Most Powerful Women in Business." The North American Coffee Partnership launched Caramel-flavored bottle bottled d Frappu Frappucci ccino no Coffee Coffee Drink Drink – the sixth sixth flavor flavor additio addition n to its popular line of ready-to-drink coffee. PepsiCo, Inc. reaches agreement to acquire a majority stake in South Beach Beverage Company, whose highly innovative SoBe brand has made it one of industry’s most successful companies. Pepsi-Cola Co.’s program to assist music education in schools, called
"Share the Joy with Music," is in stores nationwide. PepsiCo announces $4 billion share repurchase program. PepsiCo, Inc. and The Quaker Oats Company reached an agreement to merge. PepsiCo, Inc. rescinds share repurchase program.
2001 PepsiCo completes the acquisition of a majority stake in South Beach
Beverage Co. Peps PepsiC iCo o anno announ unce ces s a new new join jointt vent ventur ure e will will be forme formed d in Egyp Egyptt combining the salty snack operations of Chipsy, the current market leader, and Tasty Foods, which is owned by PepsiCo. PepsiCo PepsiCo launches launches Diversity@work Diversity@work,, http://www.pepsico.com/diversity web site. Pepsi-Cola Pepsi-Cola Company launches Dole single-ser single-serve ve juices juices in vending vending mach machin ines es,, cool cooler ers s and and othe otherr reta retailil outl outlet ets s thro throug ugho hout ut the the Unite United d States. Mounta Mountain in Dew annou announce nces s a multiy multiyea earr agreem agreement ent with with Evernh Evernham am Moto Motors rspo port rts s to spon sponso sorr the the crew crew of Atwo Atwood od #19 #19 Dodg Dodge e Deal Dealer erss Intrepid R/T race team on the 2001 NASCAR Winston Cup circuit. Pepsi-Cola’s flagship brand will have new tagline, "The Joy of Pepsi." Pepsi-Cola announces a multi-year agreement with Britney Spears as part of the "Joy " Joy of Pepsi" campaign. Pepsi will also co-sponsor Spear’s upcoming worldwide concert tour. Tropicana celebrates a company milestone – 300 billion fresh oranges squeezed since the company began making country’s first ever massdistributed, not-from-concentrate juice in 1947. The firs firstt Wins inston ton Cup Cup race race at NASCA ASCAR R’s newes west trac track, k, the the Chicagoland Speedway will be the Tropicana 400 on July 15.
Frito-Lay announces the launch of Cheetos Mystery Colorz Snacks, a cheesy new Cheetos product that magically turns color in your mouth. Tropic Tropicana ana introd introduce uces s Smooth Smoothies ies.. A natura naturall juicejuice-ba based sed produc product, t, smoothies combine fruit juices and non-fat yogurt into a smooth, filling drink that delivers nutrition, taste and convenience. Planned merger of PepsiCo and Quaker gets European Commission clearance. On April 7, World Health Day, Tropicana sponsors The Tropicana Health Run in New Delhi, India, a benchmark event that drew 10,000 promising athletes and raised funds to fight AIDS. Pepsi-Cola Company has signed an exclusive licensing agreement with with AmeriC AmeriCoGr oGroup oup to create create new new lines lines of appare apparel, l, footwe footwear ar and accessories for the Pepsi and Mountain Dew brands in the United States and Canada. The launches are scheduled for the spring 2002 fashion season. May 1- Pepsi-Cola launches the bold new Mountain Dew Code Red nati nation onwi wide de.. It is Moun Mounta tain in Dew’ Dew’s s firs firstt line line exte extens nsio ion n sinc since e the the introduction of Diet Mountain Dew in 1988. PepsiCo is a sponsor of the Keep America Beautiful annual Great American Cleanup. The company provides posters with image of Iron Eyes Cody, the "Crying Indian." May 1 -PepsiCo shareholders overwhelmingly approve plan to merge with The Quaker Oats Company. May 2 –The Board of Directors of PepsiCo, Inc. elected Steven S Rein Reinem emun und d chai chairm rman an of the the boar board d and and chie chieff exec execut utiv ive e offic officer, er, succeeding Roger Enrico who will become vice chairman. The board also elected Indra K. Nooyi as a director and gave her the additional
title of president of PepsiCo in addition to CFO. Frito-Lay introduces Lay’s Bistro Bistro Gourmet potato chips. PepsiPepsi-Col Cola a Compan Company y introd introduce uces s a "Pepsi "Pepsi Twist. Twist."" Regula Regularr and diet diet versions of the crisp new cola with lemon are entering retail outlets in selected U.S. markets. Tropicana Smoothies, a juice and yogurt drink, debut in test markets. PepsiCo moves up Fortune’s List of ‘Best Companies for Minorities’ to #13. SLAM, the orange brand Mirinda, is launched in Italy. Peps PepsiC iCo o acqu acquire ires s Tasa Tasalili Food Foods, s, Saud Saudii Arab Arabia ia’s ’s lead leadin ing g snac snackk company. On August 2, PepsiCo completes its merger with The Quaker Oats Company, creating a $25 billion food and beverage company focused on the rapidly growing consumer demand for convenience. PepsiCo introduces a new corporate logo. Follow Following ing the Septem September ber 11 tragic tragic events events of terror terrorist ist attack attacks, s, the PepsiCo Foundation donates $5 million in support of relief efforts. Tropicana Pure Premium Low Acid orange juice makes official debut at Tropicana 400. Diet Sierra Mist is introduced. Pepsi Pepsi kicks kicks off online online market marketing ing with with Yahoo Yahoo.. Soon Soon after, after, Adweek Adweek Names Pepsi’s Premier of Britney’s As on Yahoo! Best Online Event of 2001. PepsiCo wins the first mulitcultural awards competition held by the Association of National Advertisers. DiversityInc.com says Pepsi beats Coke in Diversity Cola Wars. Pepsi-Cola introduces Credit Card Vending.
Forbes es name names s Peps PepsiC iCo o one one of the the Plat Platin inum um 400, 400, "The "The Best Best Big Big 2002 Forb Companies in America." Frito-Lay introduces Go Snacks, canisters that truly go anywhere. Gato Gatora rade de intr introd oduc uces es new new Gato Gatora rade de ICE ICE subli subline ne in thre three e flav flavor orssOrange, Lime and Strawberry. Tropicana Pure Premium announces sponsorship of Disney's awardwinning show The Lion King.
PEPSICO ENVIRONMENTAL COMMITMENT PepsiCo, Inc. serves consumers in two major businesses: beverages and snack foods. The company consists of Pepsi-Cola Company, the world's second largest beverage company, Tropicana Products, Inc. the world's largest marketer and prod produc ucer er of bran brande ded d juic juices es and and Frit Fritoo-La Lay y Comp Compan any, y, the the worl world' d's s larg larges estt manufacturer and distributor of snack chips. PepsiCo brand names are among the best known and our operations reach every corner of the world. As a cons onsume umer produ roduc cts comp ompany any, Pep PepsiCo siCo does does not not hav have the the majo major r environmental problems of heavy industry. Our biggest environ-mental challenge is packaging generated by our products. Packaging is important to public health and a critic critical al compon component ent of the distri distribut bution ion sys system tem that that deliv delivers ers produc products ts to consumers and commercial establishments. To meet both consumer demand and and safe safegu guar ard d the the envi enviro ronm nmen ent, t, we recy recycl cle, e, reus reuse e and and redu reduce ce pack packag agin ing g wherev wherever er possi possible ble.. Each Each busine business ss is also also committ committed ed to respon responsib sible le use use of resources required in manufacturing our products.
PepsiCo is proud of our environmental record. Each of our divisions and facilities is empowered to find solutions to its unique environ-mental challenges. This report addresses the environmental principles presented in our Code of Conduct and examines our progress.
CHANNEL MANAGEMENT Pepsi has a very well managed distributive system. It is said that “Pepsi don’t have bottlers, it has partners”. Pepsi has a well alligned-bottling network. It operat operates es throug through h COBO COBO (Compa (Company ny owned owned bottlin bottling g opera operatio tions) ns) and FOBO FOBO (Franchise owned Bottling operations). It is this way in which Pepsi Co. India Strengthens its marketing that gives it an edge. Every number of its sales team is meticulously taught the merchandising and display skills that can leverage the reach of the company’s bottling network to achieve high visibility for the product. SELLING PROCESS
Pepsi has a very well managed selling system. It takes as lot of care to ensure that the products (Pepsi bottles) are available to the consumers. Peps Pepsii soft soft drin drink k are are prod produc uced ed in our our plan plants ts and and cr crat ates es are are supp supplilier er to shopkeepers directly. Noida Noida has been divided around around 15 routes which are called direct routes. For every route there is a Routs Agent. Route Agent moves with the company owned truck and ensure that maximum shops are covered each day, so that regular supply of Pepsi soft drinks is made. Routs agents take the order from the shopkeepers and then with the help of loaders they give the required number of crates to the Crates from the outlet and then they move for the next outlet. Our plants also have some agency in each routs. They supply in the areas where Pepsi’s trucks are not able to reach. These areas are called indirect-routes.
EMPOWERMENT
One of the strongest weapon in the Pepsi’s armoury is the flexibility it has empowered its people with. Every manager and sales person has the authorities to take whatever steps he feels will make consumer aware of the brand and increase its consumption. MANUFACTURING PROCESS
Pop! Fizz. Ah-h! It happens millions of times a day, every day. That feeling of thirst hits, someone opens a Pepsi and the magic begins. Cold. Effervescent. Delicious. Each time, every time. Of course, that's what you expect from a great product like Pepsi-Cola. Or from Diet Pepsi, Mountain Dew or any of our other popular soft drinks and other beverages. But how do we do it? How can the people at Pepsi be sure that every single bottle and can of Pepsi-Cola is always great-tasting, sparkling and fresh? Actually, there's no secret to how to make Pepsi (except for the recipe). But there is a system. And that system, plus a lot of hard work, is what enables Pepsi-Cola and the independent Pepsi-Cola bottlers all around the world to bring you that high-quality, consistently refreshing Pepsi taste each time you open one of our products. vanilla The sys system tem starts starts with with the finest finest ingred ingredien ients ts availab available le -- kola nuts, vanilla beans, flavor oils, citrus, sweeteners and the purest waters we can distill .
Then we add the best technology and all the care we can muster to blend our ingredients.
And during the 100-plus years we've been making soft drinks, we've also created our own exact exacting ing produ producti ction on and qualit quality y standa standards rds,, monitor monitored ed with const constant ant testing to guarantee quality and consistency in our products. Finally, we have our own local distribution system. It's designed to make sure that the Pepsi you open at home is as fresh and delicious as it was when we sealed it at our plant. And it serves every city and town in the United States. Complicated? For sure. And expensive, too. But there's no other way we can be certain that Pepsi-Cola products you buy are the highest quality, best value products we can make. Now, here's what all of those steps look like: Flavor concentrates are shipped from special Pepsi-Cola manufacturing plants in heavy-duty heavy-duty,, air-tight air-tight containers containers.. Liquid Liquid sweetene sweeteners rs are transporte transported d in special special tanker trucks. All ingredients and food products are stored in clean, sanitary areas, and items requiring refrigeration are kept in temperature-controlled areas. The bottles and cans that will eventually be filled with Pepsi are manufactured elsewh elsewhere ere,, and shipp shipped ed to Pepsi Pepsi plants plants wrappe wrapped d and and sealed sealed for protec protection tion.. Labels, cartons, caps, the carbon dioxide used to carbonate soft drinks and other supplies are also produced for Pepsi by other companies. On arrival, everything is subject to careful inspection to make certain all of the ingredients and materials meet Pepsi's high standards. Special equipment is used to uncase and depalletize incoming shipments of bottles and cans. Cans are by far the most popular package with consumers because they're lightweight and easy to store. Though bulky, the cartons and pallets on which the empty packages arrive are also relatively light in weight, so it's easy for the machines to automatically remove the cans from their shipping
containers at high speed. The machines then transfer the individual packages to a conveyor belt. Once on the belt, cans are part of an enclosed, controlled environment that keeps them sanitary and helps ensure quality throughout the filling process. They travel rapidly through a printer that applies a production code to each can. Then they're automa automatic tically ally turned turned upside upside down, down, and rinsed rinsed thorou thoroughl ghly y with with filter filtered ed water water before proceeding directly to the filter. Water is a key ingredient in all soft drinks. Pepsi-Cola takes special care to purify the water it uses -- a procedure that involves careful treatment, filtration and purification. Pepsi standards are precise and closely monitored at every step of the process. The result of this kind of painstaking attention to detail is that the water used in Pepsi-Cola and all of our beverages is among the purest available anywhere. Pepsi-Cola flavor concentrate is carefully combined with sweeteners and other ingredients in large stainless steel mixing tanks. Quality control audits performed by specially trained technicians are a critical part of the manufacturing sequence for each batch, and are typical of the attention to detail that's necessary if the highest possible quality standards are to be maintained. Cleanliness is also vital, so all internal and external surfaces of the production system, including syrup lines, lines, propor proportio tionin ning, g, coolin cooling g and carbo carbonat nating ing equipm equipment ent,, are meticu meticulou lously sly sanitized. In the last step of the manufacturing process, as the now-rinsed cans reach the filler, they're reinverted, immediately filled and the lid is applied -- at an average speed of 1,200 cans per minute. The filler is where the syrups from the mixing tanks are combined with the purified water from the filtration process. The liquid
is then carbonated. This carbonation process gives soft drinks the special sparkle -- fizzy bubbles -- that adds to their quality of refreshment. All Pepsi cans and bottles are imprinted with a freshness date, which is a date code that tells you your soft drink is fresh. A final quality check ensures that the package is properly filled, sealed and labeled. As products leave the manufacturing line, they're combined into a variety of packages -- six- or 12-packs, 24- or 30-can cases or cases of individual two-liter bottles. The finished packages are stacked on shipping pallets and moved to temporary holding areas or to a central warehouse for shipping. The The stor storag age e is pure purely ly temp tempor orar ary, y, sinc since e fresh freshne ness ss is an impor importa tant nt part part of delivering the best possible product to our consumers. Some of our products will be quick quickly ly transp transport orted ed by large large trucks trucks to outlyi outlying ng distri districts cts and and towns. towns. Most, Most, however, are loaded into Pepsi-Cola delivery trucks you see calling on food stores stores in your your own neighb neighborh orhood ood.. Other Other trucks trucks delive deliverr PepsiPepsi-Col Cola a syr syrup up to rest restau aura rant nts s and and foun founta tain ins. s. To make make sure sure ther there' e's s alwa always ys enou enough gh Peps Pepsii for for everyone who wants one, our trucks are on the road every single day. Many individual stores actually receive deliveries several times per week -- a big reason why the Pepsi products you buy and use are always fresh and great tasting. PACKAGING
Providing our consumers with easy-to-use, convenient and innovative containers is one of our top priorities. Package introductions we've made over the years includ include e the the indu indust stry ry's 's firs firstt twotwo-lit liter er bott bottle le;; the the first first comp compan any y to resp respon ond d to consumer preference with lightweight, recyclable, plastic bottles; The Cube, an easy-to-store 24-pack; Big Slam, the wide-mouth one-liter bottle; as well as our three-liter bottle, designed to provide consumers with extra value (not all al l products and packaging is available in all markets).
Our local bottlers, many of which are privately owned, franchise operations, make all packaging decisions. Most of our bottlers are following the industry-wide trend to use plastic packaging due to environmental considerations. The industry is now making greater use of fully recyclable aluminum cans and PET plastic bottles. More More informa informatio tion n on PepsiPepsi-Col Cola's a's enviro environme nmenta ntall commi commitme tment, nt, includ including ing its packaging initiatives, can be found here. The "CUBE" is Pepsi's new innovative 24-can multipack. It was dubbed the "CUBE" by consumer focus groups, which are a small test market population that's invited by Pepsi-Cola to give the company feedback before the introduction of a new package or product. The consumer focus groups Pepsi used for this product coined the name the "CUBE" and it stuck! Polyethylene terephthalate, or "PET plastic," is a form of polyester used to make strong, lightweight, shatter-resistant bottles for soft drinks, water, juice and other non-food products. Bottles made from PET plastic, which are marked with the number one code on the or near the bottle of the bottle, are recyclable into products including new containers, fiberfill for sleeping bags and coats, fabric, carpet, auto parts, film and more.
PRICING
Pricing of bottles : Capacity
Price
1.
300 ml
RS 10
2.
500 ml
RS 18
3.
1 litre
RS 23
4.
1.5 litre
RS 43
5.
2 litre
RS 50
8.
Pepsi Can
RS 18
9.
Pepsi Diet Can
RS 18
8.
500 ml (Pet on the go)
RS 18
COMPANY PROFILE The R.K. Jaipuria (RKJ) Group is an established group with diversified interests in foods beverages. Thoroughly experienced in setting up and running “PEPSI” Bottling Plants in India. Mr. Ravi Jaipuria was adjudged Best Pepsi Bottler of the world for the year 1998. He was presented with the Donald M. Kendall Bottler of then year award, the highest honour to any franchisee, incidentally only India in the the last last 100 100 year years. s. He has has over over 2½ deca decade des s expe experie rienc nce e in the the food food and and beve bevera rage ges s indu indust stry ry.. Flag Flagsh ship ip comp compan anie ies s of the the group group are are invo involv lved ed in the the manufacture of Pepsi beverages with a decent track of growth and profitability. The plants are located at Greater Noida, Jaipur, Kosi, Alwar, Jodhpur, Goa, Dharwad & Kathmandu (Nepal). The Ice Cream plant at Agra manufacture Ice cr crea eam m for for Hind Hindus usta tan n Leve Leverr mark market eted ed unde underr the the bran brand d name name of “KWALITY WALLS”.
The RKJ Group has signed signed a franchise franchise agreement agreement with Tricon Tricon Restraints Restraints India (India) (India) Pvt. Ltd., to run a fast food chain chain in Northern Northern India under under the name name of opening fifteen restaur restaurants, ants, the first first six of which are already already “PIZZA HUT” by opening operational at Noida, Jaipur, Jaipur, Agra, Green Green Park, Defence Colony & Alaknanda. Alaknanda. The first beverage plant was set up in 1969 at Agra under Agra Beverages Corporation Ltd., since then the family (consisting of RKJ & his brothers) has set up eighteen bottling plants in India (holding the market share of about 40% of the Pepsi manufactured and marketed in the country) and one in Nepal (holding 100% of the Pepsi share in the country). The bottling plants of the group are spread at Greater Noida (Devyani Beverages Ltd.), Jaipur, Kosi Kalan, Alwar & Jodhpur [Varun Beverages Ltd.), Goa (Goa Bottling Company Ltd.), Dharwada (Nectar Beverages Pvt. Pvt. Ltd.) and Nepal [Varun [Varun Beverages (Nepal) Pvt. Pvt. Ltd.]. The franchise area allocated by Pepsi Foods Limited to RKJ Group extents to the whole whole of Rajast Rajasthan han,, four four distri districts cts of Haryan Haryana, a, East
Delhi, Delhi, nine distric districts ts of
Western Uttar Pradesh, ten districts of Central Uttar Pradesh and North Western Madhya Pradesh.
Varun Beverages Ltd., was incorporated as a public limited company in June
1995, for bottling of various brands of Pepsi Soft Drinks like Pepsi, Mirinda Orange, Mirinda Lemon, 7UP 7UP and Soda at its plants for the domestic market. The The comp compan any y has has its its bott bottlin ling g plan plants ts at Jaip Jaipur ur,, Kosi Kosi Kala Kalan n (Math (Mathur ura, a, Utta Uttar r Pradesh), Alwar & Jodhpur. The combined turnover of VBL is about Rs. 180 crores. incorporate ated d in 1990. 1990. The company company has its Devyani Devyani Beverages Beverages Ltd., was incorpor bottling plant at Greater Noida. This is one of the modern plant with 4 Bottling Line including Fruit Juice Line. The turnover of the company is about rs. 90 crores. Devyani International Pvt. Ltd., was incorporated in 1991. The company during
Augu August st 1997 1997,, sign signed ed a fran franch chis ise e agre agreem emen entt with with Peps Pepsic ico o Rest Restau aura rant nt International Pvt. Ltd., to setup a chain of Restaurants in Northern India, under the name of PIZZA HUT by opening 15 restaurants. The first six restaurants are already operational at Jaipur, Agra, Noida, Defence Colony , Green Park & Alaknanda (New Delhi). Devyani Foods Ltd., was incorporated in Sep’ 1989. It manufactures Ice Cream
at Agra. Varun Beverages Nepal Pvt. Ltd., VBNPL, Nepal is an existing bottling unit
taken over by RKJ Group in Feb ‘ 1998. group has recently recently taken over this Goa Bottling Company Ltd., (GBCL) The group bottling plant to manufacture and supply the Pepsi range of Soft Soft Drinks in Goa. Nectar Beverages Pvt. Ltd. (NBPL) The RKJ Group has taken over this bottling
plant, in Dharwad, for manufacture and supply of Pepsi range of Soft Drinks in Karnataka.
GRAPHICAL PRESENTATION & ANALYSIS
TOTAL NUMBER OF RESPONDENTS Gender
No. of Respondents
Male
92
Female
108
Male 46% Female 54%
This graph indicates the total number of respondent’s contacted gender wise.
TOTAL NUMBER OF FEMALES AND MALES BY AGE GROUP
Gender
Age Group 12-18
18-25
25-40
Above 40
Male
13
39
27
13
Female
20
26
23
39
39
40
39
Male Female
35 30
26
27 23
25
20
20 15
13
13
10 5 0 12 to 18
18 to 25
25 to 40
Abov e 40
This graph reflects the total number of respondent’s age and gender wise.
RESPONDENTS WHO HAVE AREATED DRINKS Gender
Age Group 12-18
18-25
25-40
Above 40
Male
13
36
26
10
Female
20
24
19
34
40
Male
36
Female
35 30
24
25
20
26 19
20 15
34
13 10
10 5 0 12 to 18
18 to 25
25 to 40
Abov e 40
This graph reflects the total number of respondent’s age and gender wise who have aerated drinks. In comparison with graph number 2 we find that 7 men and 11 females don’t have aerated drinks.
CONSUMPTION PATTERN AGE GROUP 12-15 Gender
Frequency Between 1-5
Between 5-10
Above 10
Male
6
5
2
Female
8
9
3
9 9
8
Male
8
Female 6
7
5
6 5 4
3 2
3 2 1 0 Be twe e n1-5
Be twe e n 5-10
Abov e 10
This graph reflects reflects that that the highest highest frequency frequency of consumpti consumption on by females females between 5-10 bottles per week and its 1-5 in males.
AGE GROUP 18-25 Gender
Frequency
is
Between 1-5
Between 5-10
Above 10
Male
8
19
9
Female
11
7
6
19 20
Male
18
Female
16 14
11
12 10
9
8 7
8
6
6 4 2 0 Be twe e n1-5
Be twe e n 5-10
Abov e 10
This graph reflects reflects that that the highest highest frequency frequency of consumpti consumption on by females females between 1-5 bottles per week and its 5-10 in males.
is
AGE GROUP 25-40 Gender
Frequency Between 1-5
Between 5-10
Above 10
Male
7
11
8
Female
10
6
3
11
12
Male
10
Female
10 8
8 7 6
6 3
4 2 0 Be twe e n1-5
Be twe e n 5-10
Abov e 10
This graph graph reflects reflects that the highest highest frequency frequency of consumpt consumption ion by females females is between 1-5 bottles per week and its between5-10 in males.
ABOVE 40 Gender
Frequency Between 1-5
Between 5-10
Above 10
Male
9
1
0
Female
29
5
0
29 30
Male Female
25 20 15 9 10 5 5
1
0
0
0 Be twe e n1-5
Be twe e n 5-10
Abov e 10
This This graph graph reflec reflects ts that that the highes highestt freque frequency ncy of consum consumpti ption on by female females s & males is between 1-5bottles per week.
FLAVOUR PREFERENCE AGE GROUP 12-18 Flavours
Gender Cola
Lemon
Orange
Mango
Others
Male
6
4
1
2
0
Female
3
9
6
2
0
9
9
Male
8 7
Female
6
6
6 5 4
4 3
3
2
2
2
1
1
0
0
0 Cola
Le mon
Orange
Mango
Othe rs
The flavoured most preferred by males in this age group is Cola followed by Lemon mango & orange. The flavour preferred by females in this age group is Lemon followed followed by Orange, Orange, cola & mango. mango. This graph also reflects reflects that there is no preference for other flavors available in the market. AGE GROUP 18-25 Flavours
Gender
Male
Cola
Lemon
Orange
Mango
Others
17
12
14
3
0
Female
18
6
7
5
6
0
17
16
Male
14
14
Female
12
12 10 8
6
7
6
5
6
3
4 2
0
0
0 Cola
Le mon
Orange
Mango
Othe rs
The flavoured most preferred by males in this age group is Cola followed by orange, Lemon & mango. The flavour preferred by females in this age group is Lemon followed by orange, cola & mango. This graph also reflects that there is no preference for other flavors available in the market.
AGE GROUP 25-40 Flavours
Gender Cola
Lemon
Orange
Mango
Others
Male
14
7
4
1
0
Female
6
3
8
2
0
14
14 Male
12
Female
10 8 8
7 6
6
4
4
3 1
2
2 0
0
0 Cola
Le mon
Orange
M ango
Othe rs
The flavoured most preferred by males in this age group is Cola followed by, Lemon, orange & mango. The flavour preferred by females in this age group is orange followed by cola, lemon & mango. This graph also reflects that there is no preference for other flavors available in the market.
ABOVE 40 Flavours
Gender Cola
Lemon
Orange
Mango
Others
Male
2
6
2
0
0
Female
9
14
11
0
0
14
14
Male 12
11
Female
9
10 8 6
4 4
2
2
2 0
0
0
0
0 Cola
Lemon
Orange
M ango
Othe rs
The flavour most preferred by males in this age group is Lemon followed by, cola & orange. The flavour preferred by females in this age group is lemon followed by cola, orange. This graph also reflects that there is no preference for mango & other flavors available in the market.
TOP OF THE MIND BRAND RECALL GENDER: FEMALE Age Group
Brand Pepsi Coke Sprite
12-18
18-25
25-40
Above 40
8 6 2
11 8 3
9 7 0
15 10 3
7’UP Fanta Mirinda Limca ThumsUP Maza Slice Others
1 1 0 0 2 0 0 0
0 0 0 0 2 0 0 0
0 0 0 1 2 0 0 0
0 1 0 3 2 0 0 0 15
16 14 11
12 10
8
8
10
9 8
7
6
6 4 2 0
2 11
3 00
0 00
12 to 18
Pe psi Limca
0 000
000
00 0 0
18 to 2 5
Coke T humsUP
3
2
2
2
1
0 00
25 to 4 0
Sprite Maza
3
2
0 10
00 0
Above 40
7’UP Slice
Fanta Others
Mirinda
This graph reflects that the brand recall of Pepsi is highest followed by Coke in the age group 12-18.In the age group 18-25 Pepsi has the highest brand recall followed by Coke. In the age group 25-40 Pepsi has the highest brand recall followed by Coke. The last group Pepsi has the highest brand recall followed by Coke. GENDER: MALE Age Group
Brand 12-18
18-25
25-40
Above 40
Pepsi
8
15
12
4
Coke
5
16
9
3
Sprite
0
2
4
1
7’UP
0
0
0
0
Fanta
0
0
0
0
Mirinda
0
0
0
0
Limca
0
1
1
2
ThumsUP
0
2
0
0
Maza
0
0
0
0
Slice
0
0
0
0
Others
0
0
0
0
1516
16 14
12
12 10
9
8
8 6
5
4 2 0
3
2 00 0 0 0 0 0 0 0 1 2 to 1 8
Pepsi Limca
4
4
0 00
1
2
0 00 0 000
00 0
1 8 to 25
Coke T humsUP
1
1
2 5 to 40
Sprite Maza
7’UP Slice
2
0 0 0 00 0 0 Above 4 0
Fanta Othe rs
M irinda
This graph reflects that the brand recall of Pepsi is highest followed by Coke in the age group 12-18.In the age group 18-25 Coke has the highest brand recall followed by Pepsi. In the age group 25-40 Pepsi has the highest brand recall followed by Pepsi. The last group agrees with the age group25-40 in toto.
BRAND PREFERENCE GENDER: FEMALE Age Group
Brand Pepsi
12-18
18-25
25-40
Above 40
2
3
2
5
Coke
1
2
2
2
Sprite
5
4
2
5
7’UP
2
1
1
2
Fanta
5
5
6
8
Mirinda
1
0
2
3
Limca
2
2
0
7
ThumsUP
0
1
2
2
Maza
2
6
2
0
Slice
0
0
0
0
Others
0
0
0
0 8
8 6
6
5 5
0
4 3
2
2 2
2 1
2
1 0
00
12 to 1 8
Pepsi Limca
7
5 5
5
4 2
6
2
1
1 0
00
18 to 25
Coke T humsUP
3
222 2 2 2 1 0 00
2 2
00 0
25 to 40
Sprite Maza
2
Above 4 0
7’UP Slice
Fanta Others
M irinda
This graph reflects that the brands most preferred in the age group 12-18 by females are Fanta & Sprite. In age group 18-25 the most preferred brand is Maaza followed by Fanta, Sprite and Pepsi. In the age group 25-40 the most prefers brand is Fanta. In the last age group the most preferred brand is Fanta followed by Limca, Sprite and Pepsi. GENDER: MALE Age Group
Brand 12-18
18-25
25-40
Above 40
Pepsi
3
6
4
2
Coke
3
2
2
0
Sprite
4
7
3
1
7’UP
0
2
1
0
Fanta
1
4
4
2
Mirinda
0
0
0
0
Limca
0
3
3
5
ThumsUP
0
9
8
0
Maza
2
3
1
0
Slice
0
0
0
0
Others
0
0
0
0
9
9
8
7
7
6
6
5
5 4 3
8
4 33
3 2
2 1 0
3
3 1
00
0
18 to 25
Coke T humsUP
1
1
0
0
2
2
2
1 0
4
3
2 2
12 to 18
Pe psi Limca
4
4
0 0
25 to 4 0
Sprite Maza
7’UP Slice
0 Above 40
Fanta Othe rs
0 0
Mirinda
This graph reflects that the brands most preferred in the age group 12-18 by males are Sprite followed by Coke and Pepsi. In age group 18-25 the most preferred brand is Thumsup followed by Sprite and Pepsi. In the age group 25-40 the most preferred brand is Thumsup followed Fanta and Pepsi. In the last age group the most preferred brand is Limca followed by Sprite and Pepsi.
STRENGTHS OF THE PREFERRED BRANDS GENDER: FEMALE Strengths
Taste
Age Group 12-18
18-25
25-40
Above 40
12
16
15
23
Availability
3
2
0
3
Advertising
5
6
4
8
25
T as aste
Av ailability
23
Adv e rtising
20 16 15
15
12
10
8 6
5 5
3
4
2
3
0 0 12 to 18
18 to 25
25 to 40
Abov e 40
This graph reflects that taste happens to be the core strength of their brand followed by advertising.
GENDER: MALE Strengths
Age Group 12-18
18-25
25-40
Above 40
Taste
11
23
17
7
Availability
0
7
0
0
Advertising
2
6
9
3
25
23
Taste Taste
20
Availa vailabi bili lity ty
Adverti dvertis sing ing
17
15 11 10
9
7
5
7
6
3
2 0
0
0
0 12 to 18
18 to 25
25 to 40
Above 40
This graph reflects that taste happens to be the core strength of their brand followed by advertising.
PREFERRED TV COMMERCIALS GENDER : FEMALE Age Group
Commercial
A B C
12-18
18-25
25-40
Above 40
10 2 2
12 4 5
3 2 9
5 1 3
D E F G H
1 2 3 0 0
0 0 3 0 0
0 2 0 0 3
A–Pepsi (Sharuk, Kareena & Adnan) B- Coke (Aishwarya Rai & Kids) C-Pepsi (Amitab & Sachin) D-Sprite (Kite Flying) 12
E-Pepsi (Sharuk & Kareena) F-Pepsi (Britney Spears) G-ThumsUP (Kante) H-Coke (Amir Khan) A
12
9 0 2 0 4
B
C
D
E
F
G
H
10 10
9
9
8
6
5
5 4
4
3 2 2
2
4 3
3
2
2
2
2 1
1 00
0 0
0
3
3
12 to 18
0 0
0
1 8 to 2 5
0
00
25 to 4 0
0
Above 4 0
This graph reflects that the most preferred advertisement in the age group 12-18 is the new Pepsi commercia commerciall featuring is Sharuk, Sharuk, Kareena Kareena & Adnan .In the age group group the most like advert advertise isemen mentt is the new
Pepsi Pepsi commerc commercial ial featurin featuring g
Sharuk, Kareena Kareena & Adnan followed followed by the Pepsi Pepsi commercial featuring featuring Amitab & Sachin. In the age group 25-40 25-40 the most liked liked advertiseme advertisement nt is the Pepsi commercial commercial featuring Amitab Amitab & Sachin followed by the Pepsi commercial featuring Sharuk, Kare Kareen ena a & Adna Adnan. n. In the the last last age group group the the most most prefe preferr rred ed ad is
the the new new
commercial of Sprite The Kite Flying one followed by the new Pepsi Pepsi commercial featuring is Sharuk, Kareena & Adnan. GENDER : MALE Commercial
A B
Age Group 12-18
18-25
25-40
Above 40
6 3
18 6
4 0
3 2
C D E F G H
0 0 2 1 0 1
2 3 0 2 3 2
6 4 1 0 6 5
A–Pepsi (Sharuk, Kareena & Adnan) B- Coke (Aishwarya Rai & Kids) C-Pepsi (Amitab & Sachin) D-Sprite (Kite Flying)
4 0 1 0 0 0
E-Pepsi (Sharuk & Kareena) F-Pepsi (Britney Spears) G-ThumsUP (Kante) H-Coke (Amir Khan)
18 18
A
16
B
C
D
E
F
G
H
14 12 10 8 6
6
6 4
5
4 3
3 2
2
3
2
0 0 0 1 2 to 18
2
1
1 0
6
6
0 1 8 to 2 5
4
4 3
2
2 0
1 0 2 5 to 40
0
1 0 0 0
Above 40
This graph reflects that the most preferred advertisement in the age group 12-1 12-18 8 & the the age grou group p 18-25 18-25 is the the new Pepsi Pepsi commercia commerciall featur featuring ing is Sharuk Kareena & Adnan followed by the Coke commercial featuring Aishwarya Rai and the kids. In the age group 25-40 the most liked advertisement is the Peps Pepsii
comm commer erci cial al feat featur urin ing g Amita Amitabh bh and and Sachin Sachin fol follo lowe wed d by the
Coke Coke
comm commer erci cial al feat featur urin ing g Amir Amir Khan Khan.. In the the last last age age grou group p the the most most prefe preferre rred d advertisement is the Pepsi commercial featuring Amitabh and Sachin followed by the Pepsi commercial featuring Sharuk,Kareena & Adnan
PREFERRED PUNCH-LINES
GENDER: MALE Punch-Lines
Age Group 12-18
18-25
25-40
Above 40
A
6
12
8
5
B
0
10
7
0
C
1
0
5
0
D
3
1
0
5
E
3
13
6
0
A – Dil Mange More
B - Le Chal
C – Tanda Mathlab Coca Cola
D – Life Ho To Aisi
E – Taste TheThunder
14
13
A
12
B
C
D
E
12 10 10 8 8
7
6
6
6
5
4
5
5
3 3
2
1 0
1 0
0 12 to 18
18 to 25
0 25 to 40
0 0
0
Abov e 40
Dil maange more happens to be the favorite punch-line in all the age groups followed by Le Chal and taste the thunder.
GENDER: FEMALE Punch-Lines
Age Group 12-18
18-25
25-40
Above 40
A
11
15
8
19
B
0
2
1
3
C
3
0
0
0
D
2
2
6
10
E
4
5
4
2
A – Dil Mange More
B - Le Chal
C – Tanda Mathlab Coca Cola
D – Life Ho To Aisi
E – Taste TheThunder 19
20
A
B
C
D
E
18 15
16 14 12 11
10
10
8
8 6 3
4 2
4 2
0
4 2
2 0
0 12 to 18
6
5
18 to 25
1
0
25 to 40
3
2 0
Abov e 40
Dil maange more happens to be the favorite punch-line in all the age groups followed by life ho to aisi and taste the thunder.
MOTIVATORS FOR BUILDING LOYALTY GENDER: FEMALE Age Group
Factors 12-18
18-25
25-40
Above 40
6 5 1 0 0 0 3 0 5
6 0 1 2 2 0 5 1 8
3 0 1 0 0 0 2 0 10
8 0 0 0 1 0 9 0 16
A B C D E F G H I
A–Asso A–Associ ciati ation on with with movies movies and and music music stars stars B- Association with Sports Stars C-Association with Sports D-Association with Eating Joints
E-Asso E-Associ ciati ation on with with Cultur Culture e F-Schemes Introduced G-Advertising Campaign H-Events Conducted / Sponsored I -Friends 16
16
A
14
B
C
D
E
F
G
H
I
12 10
10 8
8 6 6
6 5
5
5
4 2
9
8
3
3 2 2
1 0 00
0 12 to 1 8
0
0
1
1 0
18 to 25
1 0
2 000
1 0
2 5 to 4 0
0 0 0
0
0
Above 4 0
The main motivator for females in the age group 12-18 is association with movies & music (celebrities).Respondents in the age group 18-25 feel that their main motiva motivator tor is their their friend friend circle circle follow followed ed by associ associati ation on with with movies movies & music music (celebrities) and advertising campaigns. The respondents in the age group 25-40 agree in toto with respondents in the age group 18-25 in this regard. The last group group feels feels that that their their main main motiva motivator tor is friend friend circle circle follow followed ed by advert advertisi ising ng campaigns & association with movies & music (celebrities).
GENDER: MALE Factors
Age Group 12-18
18-25
25-40
Above 40
2 2 1 0 0 0 4 0 4
3 3 3 0 4 2 12 0 9
6 6 3 0 0 0 3 0 8
0 2 2 0 1 0 2 0 3
A B C D E F G H I
A–Asso A–Associ ciati ation on with with movies movies and and music music stars stars B- Association with Sports Stars C-Association with Sports D-Association with Eating Joints
E-Asso E-Associ ciati ation on with with Cultur Culture e F-Schemes Introduced G-Advertising Campaign H-Events Conducted / Sponsored I -Friends A D G
12
12
B E H
C F I
10 9 8
8 6 6
6 4
4
3 2
2
4
4 33
3
2
3
3 2 2
2
2 1
1 0 00
0 12 to 1 8
0
0 1 8 to 2 5
0
00 0 25 to 4 0
0
0
0
0
0
Above 4 0
The The main main moti motiva vato torr for for male males s in the the age age grou group p 12-1 12-18 8 is frie friend nd circ circle le and and advertising campaigns. Respondents in the the age group 18-25 feel that their main motivator motivator is is their their advertis advertising ing campa campaigns igns followed followed by by their their
friend circle .The
respondents in the age group 25-40feel that their friend circle plays a very important role followed by advertising and association with sports .The last group feels that their main motivator is their friend circle.
BRAND PREFERENCE BETWEEN COKE AND PEPSI GENDER: MALE
Brand
Age Group 12-18
18-25
25-40
Above 40
Pepsi
9
21
12
8
Coke
4
15
14
2
25
Pepsi
21 20
Coke 15
15
10
5
9
14
12
8
4 2
0 12 to 18
18 to 2 5
2 5 to 4 0
Above 40
This graph indicates that the preference for Pepsi is greater than that of Coke excepting the age group 25-40.
GENDER: FEMALE Brand
Age Group 12-18
18-25
25-40
Above 40
Pepsi
12
14
12
19
Coke
8
10
7
15
20
Pepsi
18
Coke
16 14
14 12
12 10
19
12
15
10 8
7
8 6 4 2 0 12 to 18
18 to 25
25 to 40
Abov e 40
This graph indicates that the preference for Pepsi is greater than that of Coke in all age groups.
PRODUCTION AND SERVICE PREFERENCE ANALYSIS GENDER : MALE AGE GROUP 12-18 Pepsi
Coke
Outstan ding
Very good
Good
Bad
Outsta nding
Very good
Good
Bad
Taste
8
1
0
0
4
0
0
0
Scheme
4
3
1
0
2
2
0
0
Adds
9
0
0
0
4
0
0
0
Packagin g
2
7
0
0
3
1
0
0
Customer care
0
0
9
0
0
4
0
0
AGE GROUP 18-25 Pepsi
Coke
Outstan ding
Very good
Good
Bad
Outsta nding
Very good
Good
Bad
Taste
20
1
0
0
13
2
0
0
Scheme
19
1
1
0
12
3
0
0
Adds
21
0
0
0
15
0
0
0
Packagin g
18
2
1
0
13
2
0
0
Customer care
17
4
0
0
15
0
0
0
AGE GROUP 25-40 Pepsi
Coke
Outstan ding
Very good
Good
Bad
Outsta nding
Very good
Good
Bad
Taste
12
0
0
0
14
0
0
0
Scheme
10
2
0
0
8
6
0
0
Adds
12
0
0
0
14
0
0
0
Packagin g
9
2
1
0
7
5
2
0
Customer care
12
0
0
0
0
14
0
0
AGE GROUP Above 40 Pepsi
Coke
Outstan ding
Very good
Good
Bad
Outsta nding
Very good
Good
Bad
Taste
8
0
0
0
2
0
0
0
Scheme
7
1
0
0
2
0
0
0
Adds
8
0
0
0
2
0
0
0
Packagin g
6
2
0
0
2
0
0
0
Customer care
8
0
0
0
2
0
0
0
CUMULATIVE FIGURES OF MALE PREFERENCES Outstan ding
Very good
Good
Bad
Outsta nding
Very good
Good
Bad
Taste
47
2
0
0
33
2
0
0
Scheme
40
6
2
0
22
13
0
0
Adds
50
0
0
0
35
0
0
0
Packaging
35
13
2
0
25
8
2
0
Customer care
37
4
9
0
0
31
4
0
Customer
Customer care care
Packaging
Packaging
Adds Adds Scheme Scheme
Taste Taste 0 0
1200
20 40
30
60 40
Outs tO an inta gnd ing Ver yVge oo udts ryd good GoodGood BadBa d
PEPSI
COKE
GENDER FEMALE AGE GROUP 12-18 Pepsi
Coke
Outstan ding
Very good
Good
Bad
Outsta nding
Very good
Good
Bad
Taste
12
0
0
0
8
0
0
0
Scheme
10
2
0
0
6
2
0
0
Adds
12
0
0
0
8
0
0
0
Packaging
9
3
0
0
8
0
0
0
Customer care
0
10
2
0
6
1
1
0
AGE GROUP 18-25 Pepsi
Coke
Outstan ding
Very good
Good
Bad
Outsta nding
Very good
Good
Bad
Taste
14
0
0
0
10
0
0
0
Scheme
11
2
1
0
10
0
0
0
Adds
14
0
0
0
6
4
0
0
Packagin g
9
2
3
0
7
2
1
0
Customer care
4
3
7
0
10
0
0
0
AGE GROUP 25-40 Pepsi
Coke
Outstan ding
Very good
Good
Bad
Outsta nding
Very good
Good
Bad
Taste
12
0
0
0
2
0
0
0
Scheme
12
0
0
0
2
0
0
0
Adds
12
0
0
0
2
0
0
0
Packagin g
9
3
0
0
2
0
0
0
Customer care
1
5
3
0
2
0
0
0
AGE GROUP ABOVE 40 Pepsi
Coke
Outstan ding
Very good
Good
Bad
Outsta nding
Very good
Good
Bad
Taste
19
0
0
0
15
0
0
0
Scheme
10
8
1
0
9
6
0
0
Adds
19
0
0
0
9
5
1
0
Packagin g
10
6
3
0
12
3
0
0
Customer care
8
6
5
0
10
3
2
0
CUMULATIVE FIGURES OF FEMALE PREFERENCES Outstan ding
Very good
Good
Bad
Outsta nding
Very good
Good
Bad
Taste
57
0
0
0
35
0
0
0
Scheme
43
12
2
0
27
8
0
0
Adds
57
0
0
0
25
9
2
0
Packaging
37
14
6
0
29
5
1
0
Customer care
13
24
17
0
28
4
3
0
Customer care
Customer care
Packaging
Packaging
Adds
Adds
Scheme
Scheme
Taste
Taste
0 Outs ta nding
10
20
30
Ve ry good
PEPSI
40 Good
50
60 Ba d
0
10
Outs tanding
20
30
Ve ry good
40 Good
COKE
This graph indicates that Pepsi is overall preferred excepting for customer care .
50
60 Bad
CONCLUSION Working on this project has been a very effective practical learning process to me. This project has given me a chance to understand the buying behaviour & the buying process towards areated drinks. On the basis of all the field work and table work done, I would like to make a few suggestions which may help the company in increasing the total market as well as the individual sale of the company.
Soft drinks retail at prices between Rs. 6 and Rs. 48. This happens to be expensive when measured against purchasing power, according to one study, it takes an Indian 50 minutes of work to be able to buy a bottle(300ml) in other countries, and the norm is five minutes. Thus to increase the total market of soft drinks and their individual shares, manufactures should try and decrease the prices, so as to increase sales.
Soft drink cans which are very convenient, as the consumer can take them anywhere, unlike a bottle, are very expensive retailing from Rs. 15-Rs. 18. To increase sale of cans, this price pri ce should be brought down.
Innova Innovatio tions ns increa increase se sales sales of compan company. y. for e.g. e.g. founta fountain in Pepsi Pepsi increa increase sed d sales of Pepsi, Cans increased sales of Coca-Cola. Therefore the companies should constantly come out with innovative ideas. e.g. 300 ml plastic bottles, which the consumer can take with him, unlike the glass bottles, which he has to return. Plastic bottles can even be used again by households for various purposes.
It is also recommended that companies should launch soft drink in small pack 150 ml and 100 ml(travel packs for trains)
The soft drink cans and plastic bottles should mention the calories and other related information on the packing.
It is seen In India, that people prefer having their drinks with or after food. So Companies should have commercials, which show people enjoying their drink with a good meal, so that consumers associate drinking soft drinks while having their meals.
Companies should try to educate the consumer about the health-related
subject. For e.g.: - doctors recommend Limca to patients. Cola drinks are known to be very fattening, but in fact cola drinks contain no calories from fat they contain calories from sugar which can be easily burned off.
Companies have to put more and more visi-coolers, counters, ice box etc. to gain more loyalty of shopkeepers.
It is observed that the preference & demand for other flavours is zero, so it is advised that the company should take dramatic steps in promoting them.
BIBILOGRAPHY 1) Text books: a)
Mark Market etin ing g Mana Manage geme ment nt 10th 10th edit editio ion n by Phil Phillilip p Kotl Kotler er
b)
Prin Princi cipl ples es of Mar Marke keti ting ng 8th 8th edit editio ion n by Phil Phillilip p Kot Kotle lerr &Gar &Garyy
Armstrong. c)
Mark Market et Rese Resear arch ch by W. Boyd Boyd Jr Jr,, Ral Ralph ph West Westfa fallll,, and and Stan Stanle leyy
F.Stasch. d)
Elem Elemen ents ts of Mark Market etin ing g Res Resea earc rch h by by Pra Prade deep ep Kuma Kumar. r.
e)
Jack Jack Stra Straig ight ht from from the the Gut Gut by by Jack ack We Welch. lch.
2) Business & General Interest Magazines: a)
Business Today
b)
Advertising & Marketing
c)
Business India
d)
Business World
e)
Outlook
f)
India Today
3) News Papers a)
Hindustan Times
b)
Times of India
c)
Economic Times
d)
Financial Express
4) Websites a)
Pepsico.com
b)
Pepsiworld.com
c)
Indiainfoline.com
QUESTIONNAIRE Subject: Consumer Behavior
Topic: Comparative analysis between Pepsi & Coke
Personal Information: (A) Name:_________________________ Name:______________________________________ __________________________ _____________ (B) Address: ____________________________ _________________________________________ _____________________ ________ (C) Phone Phone No: No: 1) Residence: Residence:____ ________ ________ ____ 2) Office: Office: ________ ____________ ________ ____ (D) Age :Between 12-18 Between 18-25 Between 25-40 Above 40 (E) Sex: Male Female 1) Do you you have have aerate aerated d drink drinks? s? Yes No 2) How many many soft soft drinks drinks do you you consume consume in a week? week? a) Between 1-5 b) Between 5-10 c) Above 10
3) Which flavors do u like? a) Cola b) Lemon c) Orange d)Mango e) Others 4) Which brand Comes to your mind? a) Pepsi b) Coke c) Sprite d) 7UP e) Fanta f) Mirinda g) Limca h) Thums UP I) Maaza j) Slice k) Others 6) Which Which Brand Brand do you prefer prefer? ? a) Pepsi b) Coke c) Sprite d) 7UP e) Fanta f) Mirinda g) Limca h) Thums UP I) Maaza j) Slice k) Others 7) What accordi according ng to you you is the strength strength of of your brand? brand? __________________________ _________________________________________ ____________________________ ___________________ ______ __________________________ _________________________________________ ____________________________ ___________________ ______ __________________________ _________________________________________ ____________________________ ___________________ ______ ___
8) What motivates motivates you you to build loyalty loyalty towards towards a particula particularr brand? brand? a) Brand Ambassadors: 1) Movie Stars 2) Music Stars 3) Sportsmen b) Associations with Sports c) Associations with Eating Joints (e.g. pizza hut, McDonalds…) d) Associations with Culture e) Schemes offered f) Advertisement campaigns g) Events carried out h) Friend circle i) Others ____________________________ ___________________________________________ ______________________ _______ 9) With what what would you you like to assoc associate iate your your brand brand with? __________________________ _________________________________________ _____________________________ _____________________ _______ __________________________ _________________________________________ _____________________________ _____________________ _______ __________________________ _________________________________________ _____________________________ _____________________ _______ 10) Whic Which h T.V T.V Co Comme mmercia rciall app appe eals als to you th the mos mostt an and wh why?(S y?(So oft drinks) __________________________ _________________________________________ _____________________________ _____________________ _______ __________________________ _________________________________________ _____________________________ _____________________ _______ __________________________ _________________________________________ _____________________________ _____________________ _______ 11) Which brand according to you has the most effective punch line and why? __________________________ _________________________________________ ____________________________ ___________________ ______ __________________________ _________________________________________ ____________________________ ___________________ ______ __________________________ _________________________________________ ____________________________ ___________________ ______ ___ 12)What demotivates you from buying other brands? __________________________ _________________________________________ ____________________________ ___________________ ______ __________________________ _________________________________________ ____________________________ ___________________ ______ __ 13) Given a choice between Pepsi & Coke what would you prefer and why? __________________________ _________________________________________ ____________________________ ___________________ ______ __________________________ _________________________________________ ____________________________ ___________________ ______ __________________________ _________________________________________ ____________________________ ___________________ ______ ___ 14)Please grade them on the basis of your experiences Pepsi
Outstanding Good Average Bad a) Taste b) Schemes c) Adds d) Packaging e) Customer Care
Coke
Outstanding
Good Average Bad
