PREFACE “Marketing is too important to be left to the marketing department.” David avid Pack Packar ard d of Hew Hewlett lett Packed. The Indian market is getting to be consumer oriented. This is the reason behin behind d the except exception ional al boom boom in advert advertisi ising. ng. Below Below the line line market marketing ing acti activi viti ties es,, fast fast dist distri ribu buti tion on syst system em and and more more soph sophis isti tica cate ted d cons consume umer r research. The problem that all marketers are facing is getting the maximum done in the minimum possible time. And with brand loyalty becoming a thing of the past, given the choice available to the consumer pull. The consumer could be a purchaser of end products, or a financial investor, or even even an indu indust stri rial al purc purcha hase serr. Ever Everyw ywhe here re,, ther theree is a new new thru thrust st on marketing and advertising. The hyper activity in the market place is seeing a boom in support services, with a number of independent agencies mushrooming to provide them. The entries of multinational products in to the country are seeing more emphasis on world- class quality. quality. The scene has moved beyond the threshold of global presence, inward and out ward. However, there are certain issues still dogging an unchecked move move forwa forward rd some someth thin ing g boun bound d to happ happen en when when the the econ economy omy is just just opening up. These need to be addressed. Nonetheless, India has taken the 1
irreversible step forward in becoming a part of the global family. family. And in the process of growth, there are already and will be in future, quantum jumps in progress.
INTRODUCTION In the modern urban culture consumption of soft drinks particularly among younger generation has become very popular. Soft drinks in various flavors and tastes are widely patronized by urban population at various occasions like dinner parties, marriages, social get together; birthday calibration etc. children of all ages and groups are especially attracted by the mere mention of the word soft drinks. With the growing popularity of soft drinks, the technology of its production, preser preserva vatio tion, n, trans transpo porta rtatio tion n and and or mark marketi eting ng in the the rece recent nt years years has witnessed phenomenal changes . The so-called competition for this product in the market is from different other brands. Mass media, particularly the emergence of television, has contribute to a large extent of the ever growing demand for soft drinks the 2
attractive jingles and sport make the large audience remember this product at all times.
It is expected that with the sort of mass advertising, reaching almost the entire country and offering various varieties annual demand for the product is expected to rise sharply in the times to come.
In any marketing situation, the behavioral / environmental variables relating to consumers, competition and environment are constantly influenced. The competitors in a given industry may be making many tactical exercises in market all the time. The may introduce or initiate an aggressive promotion campaign or announce a price reduction. The marketing man of the firm has to meet all these maneuver and care of competitive position of his firm and his brand in the market. The only route open to him for achieving this is the manipulation of his marketing tactics.
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In today’s highly competitive market place, three players have dominated the industry; The New York based Pepsi Company Inc. The Atlanta based coca- cola and U.K. based Cadbury Schweppes.
SOFT DRINK INDUSTRY: AN OVERVIEW It all began in 1886, when a tree legged brass kettle in Hohn Styth pemberton’s backyard in Atlanta was brewing the first P of marketing leged. Unaware the pharmacist has given birth to a caromel colored syrup, which is now the chief ingredient of the world’s favorite drink. The syrup combined with carbonated the soft drink market. It is estimated that this drink is served more than one thousand million times in a day. Pemberton & Robinson laid the first foundation of this beverage when an average nine drinks per day to begin with, upping volumes as sales grew. 4
In 1894, this beverage got into bottle, courtesy a candy merchant from Mississippi. By the 1950’s Colas was a daily consumption item, stored in house hold freezes. Soon were born other non- cola variants of this product like orange & Lemon. Now, the soft drink industry has been dominated by three major player – (1) The New York based Pepsi co. Inc.(2) The Atlanta based coca cola co. (3) The united Kingdom based Cadbury Schweppes. Though out the glove these major players have been battling it. Out for a bigger chunk of the ever-growing cold drink market. Now this battle has begun in India too. India is now the part of cold drink war. Gone are days of Ramesh Chauhan,
India’s one time cola king and his bouts of pistol shooting. Expect now to hear the boon of cannons when the Coca Cola & Pepsi co. battle it out for, as the Jordon goes a bigger share of throat. By buying over local competition, the two American Cola giants have cleared up the arena and are packing all their power behind building the Indian franchisee of their globe girdling brands. The huge amount invested in fracture has never been seen before. Both players seen an enormous potential in his country where swigging a carbonated beverage is still considered a treat, virtually a luxury. 5
In colas, Pepsi is already market leader and in certain cities like Delhi, Pepsi outlets are on one side & all the other colas put together on the other. While coke executive scruff at Pepsi’s claims as well as targets, industry observers are of the view that Pepsi has definitely stolen a march over its competitor coke. Apart from numbers, Pepsi has made qualitative gains. The foremost is its image. This image turnaround is no small achievements, considering that since it was established in 1989, taking the hardship route prior to liberalization and weighed down by export commitments.
Now, at present as there are three major players coke, Pepsi and Cadbury and there is stiff competition between first two, both Pepsi and coke have started, sponsoring local events and staging frequent consumer promotion campaigns. As the mega event of this century has started, and the marketers are using this event – world cup football, cricket events and many more other events.
The success of soft drink industry depends upon 4 major factors viz.
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Availability
Visibility
Cooling
Range
AVAILABILITY Availability means the presence of a particular brand at any outlet. If a product is now available at any outlet and the competitor brand is available, the consumer will go for that. VISIBILITY Visibility is the presence felt, if any outlet has a particular brand of soft drink say- Pepsi cola and this brand is not displayed in the outlet, then its availability is of no use. The soft drink must be shown off properly and attractively so as to catch the attention of the consumer immediately. COOLING As the soft drinks are consumed chilled so cooling them plays a vital role in boosting up the sales. The brand, which is available chilled, gets more sales then the one which is not, even if it is more preferred one. RANGE This is the last but not the least factor, which affects the sale of the products of a particular company. Range availability means the availability of all SKU (Stock Keeping Units).
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PROFILE OF PEPSICO
MISSION: “PEPSI is continuously striving for synergy between technology, system and human human resource resource to provide provide product product and services services thet thet meets meets the quality quality,, performance and price aspirants of customer. While doing so, it maintains the highest highest standard standards s of ethics ethics and societa societall respons responsibili ibilities ties,, innovate innovates s product and, processes and develop team that keep the momentum going to take the company to excellence in the new millennium. ”
About PEPSI PepsiCo is the 18 th largest American Company with its worldwide operations in 190 countries. The company is possibly the largest employer. PepsiCo has set up a fully integrated operation in India- manufacturing, research and development, marketing, distribution, covering fruit/vegetable processi processing, ng, exports, exports, snack snack foods, foods, beverag beverages es and restaura restaurants, nts, includi including ng franchising of beverage territories for beverage business and restaurants it has set up a holding company to further accelerate growth in the future through new initiatives and 8
joint joint ventu ventures res.. Peps PepsiCo iCo starte started d its opera operatio tions ns in India India in 1989 1989 with with the formation of Pepsi Foods Limited. Starti Starting ng from from a Zero Zero base, base, Peps Pepsi, i, today today,, enjoy enjoys s a leader leadersh ship ip in Cola Cola category. The company’s beverage brands are Pepsi, 7Up, Mirinda Lemon, Mirinda Orange, Slice, Tropicana Product, Aquafina, Diet pepsi, pepsi can. Pepsi services all retailers at least thrice a week and in summer, very often, twice a day.
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1. COMPANY PROFILE-PepsiCo Inc. PepsiCo is one of the largest companies in the U.S. It figures amongst the largest largest 15 compani companies es worldwi worldwide de accordin according g to the number number of employee employees s hired. PepsiCo is a world leader in the food chain business. It consists of many companies amongst which the famous one is Pepsi-Cola, Frito-Lay and Pepsi Food International. The group is presently into two of the most profitab profitable le and profita profitable ble and growing growing industr industries ies namely namely,, beverag beverages es and snack foods. It has scores of big brands available in nearly 150 countries across the globe. globe. The group has established established for itself once of the strongest strongest brands in various segments of its operations.
The beverages segment primarily markets its Pepsi, Diet Pepsi, Mountain Dew and other brands worldwide and 7-UP outside the U.S. markets. These are positioned in close competition with Coca-Cola Inc. of USA. A point which which is worth worth a menti mention on is that that Coca Coca-Co -Cola la gets gets 80% 80% of its profits profits for 10
International operations while the same figure for PepsiCo stands at 6%. The segment is also in the bottling plants and distribution facilities and also distributes distributes the ready to drink tea products products of Lipton in North America. America. In a joint venture with orient spray juice products PepsiCo also manufactures and distributes fruit juices.
The snack food division manufactures and distributes and markets chips and other other snack snacks s world worldwid wide. e. The The intern internat ation ional al oper operati ation ons s of this this segm segment ent extends to the markets of Mexico, the UK and Canada. Frito-Lay represents this segment of PepsiCo. The restaurant segment earlier primarily consists of the operations of the world worldwid wide e Pizza Pizza Hut, Hut, Taco aco Bell Bell and and KFC KFC chains chains.. PFS. PFS. Pepsi Pepsi Co’s Co’s restaura restaurant nt distribu distribution tion operati operation, on, supplie supplies s company company owned owned and franchi franchise se restaurants restaurants in the U.S. The company ventured into restaurant business with Taco Bell, KFC, Pizza Hut ended last year when they were spinned off from the comp company any.. A packa package ged d goods goods comp company any comp compris rised ed of Peps Pepsi-C i-Col ola a Company and Frito-Lay will continue to bear the PepsiCo name. The move should should enhanc enhance e both corporati corporations ons ability ability to prosper prosper with their their own fully dedicated structure and management team.
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THE GENESIS OF PEPSI The summer of 1898, as usual, was hot in New Bern, North Carolina. So a young pharmacist named Caleb Bradham began experimenting with combinations of spices, juices and syrups, trying to create a refreshing new drink to serve to his customers - he succeeded beyond all expectations because he invented the beverage now known around the world as PepsiCola.
Caleb Bradham knew that to keep people returning to his pharmacy, he would have to turn it into a gathering place. He did so by b y concocting concocting his own special beverage-a soft drink.
His creati creation, on, a uniqu unique e mixtu mixture re of kola kola nut nut extrac extract, t, vanil vanilla la and and rare rare oils, oils, 12
became so popular his customers customers named it "Brad's Drink." Caleb decided to rena rename me it "Pep "Pepsi si-C -Col ola, a,"" and and adve advert rtis ised ed his his new new soft soft drin drink. k. Peop People le responded, and sales of Pepsi-Cola started to grow, convincing him that he should form a company to market the new beverage.
His creati creation, on, a uniqu unique e mixtu mixture re of kola kola nut nut extrac extract, t, vanil vanilla la and and rare rare oils, oils, became so popular his customers customers named it "Brad's Drink." Caleb decided to rena rename me it "Pep "Pepsi si-C -Col ola, a,"" and and adve advert rtis ised ed his his new new soft soft drin drink. k. Peop People le responded, and sales of Pepsi-Cola started to grow, convincing him that he should form a company to market the new beverage.
In 1902, he launched the Pepsi-Cola Company in the back room of his pharmacy, and applied to the U.S. Patent Office for a trademark. At first, he mixed the syrup himself and sold it exclusively through soda fountains. But soon Caleb recognised that a greater Opportunity existed - to bottle Pepsi so that people could drink it anywhere.
By the end of 1910, there were Pepsi-Cola franchises in 24 states. A 1913 editorial in the Greensboro Patriot praised him for his "keen and energetic business sense'. Pepsi-Cola enjoyed 17 unbroken years of success. Caleb
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promoted Pepsi sales with the slogan, " Drink Pepsi-Cola. It will satisfy you." you." In 1934, the company moved to a new headquarters location in Long Island City, New York, and four years later, in 1938, Walter S. Mack was selected to be the new president of Pepsi-Cola. Mack believed that advertising could be a basis of soft drink marketing and soon introduced a comic strip, " Pepsi &Pete", &Pete", To promo promote te Peps Pepsi's i's prici pricing ng adva advanta ntage ge with with the line line "Twice as much for a nickel." nickel ."
The company also began experimenting with new bottle sizes, and for the first time began to package Pepsi-Cola in cans.
For Pepsi-Cola, the '50s were embodied by the company's new president, Alfred Steele, a man of immense drive and vitality, who presided over an extended period of growth and expansion.
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By the mid-1950s, Alfred Steele had become chairman of Pepsi's board of directors, and Herb Barnett had replaced him as the company's president. Innovation continued, and a distinctive new "swirl" bottle was introduced in 1958. That same year, a new advertising campaign, "Be Sociable, Have a Pepsi," was also launched. Internationally, Pepsi continued to expand still now.
Pepsi-Cola sensed that attitude and captured their spirit with a name that has stood the test of time. They were the Pepsi Generation.
During its first 65 years, Pepsi-Cola Company sold only one product-Pepsi. But, with the baby boom, not only did the nation's population change, so did the way it thought of soft drinks. For many people, soft drinks had to be not just refreshing, but a complement to diet habits as well. So, in 1963, the company developed a new low-calorie drink with a taste worthy of carrying the Pepsi-Cola name: Diet Pepsi. In 1964, Mountain Dew, a regional soft drink favourite, became an important new addition to the growing family of Pepsi-Cola brands, and its advertising theme, "Ya-hoo, "Ya-hoo, Mountain Dew," Dew," became the brand's instantly recognisable signature.
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Pepsi in cans had by now proved so popular that full-scale commercial distribution began in 1965. That same year Pepsi-Cola Company merged with a successful Dallas, Texas, marketer of salty snacks, Frito-Lay, Inc., to form PepsiCo - one of the great consumer products companies on the U.S. business scene. "Pepsi: The Choice of a New Generation ", a campaign that reaffirmed Pepsi's position on the leading edge of contemporary culture.
Pepsi made its first trip on the space shuttle, carried in a specially designed "space can," and crossed yet another new frontier by beginning distribution in China. By the middle of the decade, more than 600 Pepsi-Cola plants were operating in 148 countries and territories throughout the world.
As Pepsi's business throughout the world continued to increase in importance, Chris Sinclair was a president of Pepsi-Cola International in 1989.
As the 1990’s opened, so did a new era in Pepsi's international operations. The company signed the single largest trade agreement in history with the Sovie Soviett Union Union.. Seek Seeking ing long-t long-term erm growt growth, h, Peps Pepsii invest invested ed in such such highhighpotential markets as China, Eastern Europe, Mexico and Argentina. 16
More than that, PepsiCo has become a truly international company. Its soft drinks and other beverages, snack foods of every variety and the PepsiCo restaurants can today be found in every corner of the globe. PepsiCo brands and PepsiCo operations today employ almost half a million people in 195 countries around the world.
These developments and many more will write Pepsi story for the next mille millenni nnium um - a story story that that was was undou undoubte btedly dly find find a comp company any with with a vast vast resour resource ces, s, thrivi thriving ng busin busines esses ses,, extra extraord ordina inaril rily y finan financia ciall stren strength gth and and thousands of bright, dedicated people.
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PEPSI’S MARKETING STRATEGIES
Pepsi’s approach is radically different from that of Coke, Pepsi has gone gone in for for concentration segm segmen entat tation ion.. Peps Pepsii has has targe targeted ted the youth youth segment instead of trying to be something to all segments. Pepsi has since since beginning strove strove to achieve its internationa internationall position as `a drink for the new generation’ in India. Helped by HTA’s forceful visuals and creative, Pepsi has been successful in positioning itself for the younger generation. SELLING PROCESS
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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. Pepsi soft drinks are produced in our plant in different SKUs (Stock keeping units) and distributed to our distributer and they further supply to the retailer. Shahibabad (GZB) has been divided around 14 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 shopkeepers and then with the help of loaders they give the required number of crates to the retailer or shopkeeper & then move to next. Our plants also have some agency in each rout. They supply in the areas where Pepsi’s trucks are not able to reach. These areas are called indirect-routes.
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MICHAEL PORTER MODEL FOR PEPSI
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POTENTIAL BUYERS
ENTRANTS
INDUSTRYCOMPETITORS INDUSTRYCOMPETITORS
SUPPLIERS Sources: Phillip kotler’s Marketing Management
ENTRANTS 21
SUBSTITUTES
Two soft drink giants i.e. Pepsi, Coke, are already here, no other company plan plans s to ente enterr in this this capi capita tall-in inte tens nsiv ive e indu indust stry ry at the the mome moment nt.. The The investment in this industry is more than Rs.100 per crate. This leaves no scope for small players who cannot match the might of the two multinational giants. Thus at the moment there are no potential entrants.
SUPPLIERS : The bottling is done either by franchises or by company owned bottling plan plants ts.. The The empt empty y glas glass s bott bottle les s and and shel shells ls are are sour source ced d from from loca locall manuf manufact acture urers. rs. The The ingre ingredie dients nts for for the conc concent entrat rate e are are sour sourced ced and and manufactured locally. There is abundant supply of water and sugar. Thus on the suppliers side Pepsi does not have a problem. Presently the cans are imported and filled locally near Pune in Maharashtra. Seeing the potential, various local manufacturers are setting up plants for manufacturing cans in India. Soon this problem will also be resolved.
BUYERS The following are the various market segments 1.
On-premise market.
2.
Home market.
3.
At work market.
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4.
Youth market.
5.
Special events market.
6.
High visibility market.
SUBSTITUTES Any drink, which quenches thirst, is a substitute. Thus this industry is highly competitive as even water is substitute and almost a dozen products are launched every year. Recently Dabar India Ltd. has launched “Real” - fruit juices and the makers of “Frooti” have launched “Jolly Jelly”. But nowadays, nowadays, people people prefe preferr carbon carbonate ated d drink drinks s becau because se of the taste, taste, fizz fizz and and the fun element attached with it.
COMPETITION: The other two major players in this industry are Coca Cola and Cadbury Schweppes. The real competition is between Pepsi and Coke. Presence of competition will ensure expansion of the market by collective efforts, which is growing at a rate of 25% annually. There is tremendous potential considering the the per per capi capita ta cons consum umpt ptio ion n of Indi India, a, whic which h is a meas measly ly 0.6 0.6 lite liters rs as compared to US where it is 83.5 liters. Presently Pepsi has stolen a march over its rival because of its marketing efforts. 23
COCA-COLA
MARKETING STATEGIES OF COKE a) PRODUCT Coke was launched in India in Agra, October 24, in '93', soon after its traditional all Indian launch of its Cola. At the sparking new bottling plants at Hathra near Agra.Coke Agra.Coke was back with a bang after its exit in 1977. Coke was planning to launch in next summer the orange drink, Fanta-with the clear lemon drink, sprite, following later in the year. Coke's product line includes, Coca-Cola, Thums Up, Fanta, Maaza, Sprite, Club Soda, 7-up,Limca,Fanta apple, Diet Coke.
PACKAGING Coca-Cola India Limited (CCIL) has bottled its Cola drink in different sizes sizes and different different packagi packaging ng i.e., 200 ml bottle, bottle, 300 ml. Bottle, Bottle, 330 ml. Cans, 500 ml. and bottles of 1 and 2 litre.
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PRODUCT POSITIONING One important thing must be noticed that Thums Up is a strong brand in western and southern India, while Coca Cola is strong in Northern and Eastern India. With volumes of Thums Up being low in the capital, there are likely chances of Coca Cola slashing the prices of Thums Up to Rs. 5 and continue to sell Coca Cola at the same rate. Analysts feel that this strategy may help Coke since it has 2 Cola brands in comparison comparison to Pepsi which has just one.
Thum Thums s Up acco accoun unts ts for for 40% 40% of Coca Coca Cola Cola comp company any's 's turn turn over over, followed by Coca Cola which has a 23% share and Limca which accounts for 17% of the turn over of the company. company. We will sell whatever whatever consumers consumers wants wants us to". Coca Coca Cola India has has positioned positioned Thums Thums up as a beverage beverage associated with adventure because of its strong taste and also making it compete with Pepsi as even Pepsi is associated with adventure youth.
b) PRICE The price being fixed by industry, leaving very little role for the players to play in the setting of the price, in turn making it difficult for competitors to compete on the basis of price. The fixed cost structure in Carbonated Soft Drinks Industry, and the intense competition competition make it very difficult difficult to change or alter the prices. prices. The various costs incurred incurred by the individual individual companies are almost almost unavoidable. unavoidable. These being the costs of concentrates, concentrates, standard bottling operations, distributor and 25
bottle bottlers rs comm commiss ission ions, s, distr distribu ibutio tion n expen expense ses s and and the the prom promot otion ional al and and advertising expenditure (As far as Coke is concerned, it had to incur a little more than Pepsi as Pepsi paved its way to India in 1989 while Coke made a comeback in 1993.) Currently a 300 ml. Coke bottle is available for Rs10 the 330 can was was initially initiall y available for Rs. 15 and now Rs.20. The prices of 500 ml, 1 litre. And 2ltr being Rs20 Rs20 Rs.35 Rs.35 and Rs.50 respectively respectively (accordin (according g to the current survey). However, However, the trends may have been in the early '90's, now the prices of Pepsi and Coke are the same making it difficult in future and present to compete on the basis of price.
c) PLACE Coke may have gained an early advantage over Pepsi since it took over Parle Parle in 1994. Hence, Hence, it had ready access access to over 2,00,000 2,00,000 retailer retailer outlets and 60 bottlers. Coke was had a better distribution network, owing to the wide network of Parle Parle drinks all over India. India. Coke has further further expanded its distribution network. Coke Coke and and its prod product uct were were availa available ble in over over 3,00, 3,00,00 000 0 outlet outlets s (in (in contrast with Pepsi's Pepsi's 2,75,000). 2,75,000). Coke has a greater greater advantage advantage in terms of geographical coverage.
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Coke and Pepsi have devised strategies to get rid of middlemen in the distrib distribut ution ion network. network.
Howe However ver,, 50% 50% of the the indus industry try unfortu unfortuna natel tely y
depends on these middlemen. middlemen. As of now, now, around 100 agents are present present in Delhi. Bottlers of the the 2 multinationals multinationals have strongly strongly felt the need to remove remove these middlemen from the distribution system, but very little success has been achieved in doing so. d) PROMOTION It must be remembered that soft drinks purchases are an "impulse buy low involvement products" which makes promotion and advertising an important important marketing tool. tool. The 2 arch rivals rivals have spent a lot on advertising advertising and on promotional activities. According to Paul Stobart , Advertising encourages customers to recognize the the quality the company offers. offers. Price promotions promotions often produce produce short-term sales increases. Coca Cola has entered new markets and also developing market economics (like India) with much-needed jobs.
STRATEGIES ADOPTED BY COKE AND PEPSI
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The Pepsi Pepsi Proces Process: s: Despi Despite te bein being g a globa globall bran brand, d, Peps Pepsii has has built built its success on meeting the Indian consumer’s needs, particularly in terms of making the brand synchronize with localized events and traditions. Instead of harping on its global lineage, ergo, it tries to plug into ethnic festivals, festivals, use the vernacular indifferent part of the country, and blend into the local fabric. Pepsi is using both national campaigns-such as the Drink Pepsi, Get Stuff scheme, which offers large discounts on other products to Pepsi-buyers as well as local . The Coke Copy: Instead of creating a bond with the customers through small small but highhigh-imp impac actt events events,, Coca Coca-Co -Cola la chose chose to asso associa ciate te itself itself with with national and international mega events like the World Cup Cricket, 1996, and world cup football 1998. But now coke is also entering into local actions. Coke is also trying to make their brand synchronize with localized events traditio traditions ns and festivals. festivals. Coca-C Coca-Cola ola new tag line in this advertisem advertisement ent is “Real shopping, Real refresher”. In this way Coke is copy Pepsi.
EMPOWERMENT 28
The Pepsi Process: Once of the strongest weapons in Pepsi’s armory is the flexibility it has empowered empowered its people with. Every manager and salesperson salesperson has has the the auth author ority ity to take take what whatev ever er step steps s he, he, or she, she, feel feels s will will make make consumers aware of the brand and increase its consumption. The Coke Copy: Copy : Flexibility is the weapon that Coca-Cola, fettered as it is by the need for approvals from Atlanta for almost everything. In the past, this has shown up in its stubborn insistence on junking the franchisee network it had acquired from Parle; in its dependence on its own feedback feedback mechanism over that of its bottlers;’ and on its headquarters-led approach. PRICE The Pepsi process: Pepsi has consistently wielded its pricing strategy as in invitation to sample, aiming to turn trial into addiction. It launched the 500 ml bottle in 1994 at Rs. 18 versus Thums Up’s Rs. 9, in April, 1996, its 1.5 litre bottle followed Coke into the marketplace marketplace at Rs. 30 – Rs 5 less than Coke’s .But it couldn’t continue the lower price positioning for long. The Coke Copy: Initially, Initially, coke carbon-copied carbon-copied the strategy by introducing introducing its 330ml cans in January 1996, at an invitation price of Rs. 15 before raising it to Rs.18. By this time, it had realized that the Coca-Cola brand did not hold enough attraction for customers to fork out a premium. 29
The Cola Wars
OVER A CENTURY OF COLA SLOGANS, SLOGANS, COMMERCIALS, COMMERCI ALS, BLUNDERS, AND COUPS
There's little doubt that the most spirited and intense competition in the beverage world is between Coca-Cola and Pepsi. These two American companies long ago took their battle worldwide, and although there are other colas in the market, these giants occupy this high-stakes arena by themselves. The impact of Coke and Pepsi on popular culture is indisputable, and I have observed in my time managing this web site that America has not become jaded about the cola wars. The memorabilia, the jingles, the trivia - all still popular. So I am offering this page in an attempt to assuage a wee bit of the Coke and Pepsi thirst that is thriving on our planet.
IT ALL STARTED . . . . Coca-Cola was invented and first marketed in 1886, followed by Pepsi in 1898. Coca-Cola was named after the coca leaves and kola nuts John 30
Pemberton used to make it, and Pepsi after the beneficial affects its creator, Caleb Bradham,
claimed it had on dyspepsia. For many years, Coca-Cola had the cola market cornered. Pepsi was a distant, no threatening contender. But as the market got more and more lucrative, professional advertising became more and more important. These soda companies have been leading the way in advertising ever since. ADVERTISING HISTORY & COMMERCIALS Pepsi has definitely leaned towards the appeal of celebrities, popular music, and young people in television commercials, while Coke relies more heavily on images of happiness and togetherness, tradition, and nationalism, perpetually trying to cash in on its original lead. In a simplified sense, you could sum up the strategies as Coke: Old, Pepsi: New . In fact, as we will see, when Coca-Cola tried something new , it was disaster. The first magazine ad for Coca-Cola appeared in Munsey's in 1902. Advertisements began to appear on billboards, newspapers, and streetcars. Soon there were serving trays with images of people enjoying Coca-Cola, and glasses with the cola's name on them. At this time, Coca-Cola and Pepsi were served in drugstore soda fountains.
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In 1909, Pepsi used its first celebrity endorser, automobile race driver Barney Oldfield, in newspaper ads. In 1921, Pepsi went bankrupt, but continued to appear on the scene, although not nearly so successfully as Coca-Cola. In 1931, Pepsi went bankrupt again, but the new owner, Roy Megargel, would hit upon an idea that would finally give Coca-Cola some competition. In 1934, he marketed Pepsi in a 12-ounce bottle for a nickle. At the time, Coca-Cola was sold in a 6-ounce bottle for ten cents. Voila! Profits for Pepsi.
Pepsi racked up another first by airing the first radio jingle in 1939. It was so popular that it was played in jukeboxes and became a hit recordCoca-Cola hit the airwaves in 1941.
In 1946, inflation forced Pepsi to increase prices. And in 1950, Pepsi offered a larger 26-ounce bottle to court the young American housewife.
In the 1960's, the cola ad wars moved to television. Coca-Cola employed a host of celebrity singers to promote the product, including Connie Francis , Tom Jones, Jones, The New Beats, Beats , Nancy Sinatra, Sinatra , and The Supremes. Supremes . As we moved through the years, both colas incorporated some of their best slogans ("Pepsi Generation" and "the Real Thing") into subsequent commercials.
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In the 1970s, market research showed that consumers preferred the taste of Pepsi over Coke. The Pepsi Challenge is still being conducted today. But Coke came up with what is arguably the best of all cola commercials, the 1971 I'd Like to Buy the World a Coke ad. This landmark was recalled in Christmas versions in 1983 and 1984, 1984, and a 1990 Super Bowl ad, ad , which was enough to make some Baby Boomers weep with nostalgia.
In the 1980's, Pepsi lined up the celebrities, starting with Late Michael Jackson, Jackson , then Madonna, Michael J. Fox, Billy Crystal, Lionel Ritchie, Gloria Estefan, Joe Montana, and others. Coke signed on Michael Jordan, New Kids on the Block, Aretha Franklin, Franklin , Elton John, and Paula Abdul.
In 1985, responding to the pressure of the Pepsi Challenge taste tests, which Pepsi always won, Coca-Cola decided to change its formula. Bill Cosby was the pitchman. This move set off a shock wave across America. Consumers angrily demanded that the old formula be returned, and CocaCola responded three months later with Classic Coke. Eventually, New Coke quietly disappeared.
Pepsi, meanwhile, had its own flop, Crystal Pepsi, which was supposed to catch the strange wave of the times when everything colorless was clean and desirable (Zima, bottled water). And then there was Pepsi
33
Lite with the lemony flavor and one calorie, introduced in 1975. Remember that one? Apparently they didn't expect us to because later they gave us Pepsi One, using the same concept, but a completely different taste. And, extending the idea even further, we are now getting Pepsi Twist, a new product with a twist of lemon flavor.
In 1991, Ray Charles sang, "You "You got the right one baby, uh-huh!" Also in the 1990s, Cindy Crawford and the Spice Girls pitched Pepsi. And then Pepsi aired commercials featuring the aggravating little girl (Hallie Eisenberg) with her troubling male voice .
In the new century, both colas continue to battle it out on the television screen. And celebrities continue to be important promoters. Recently, Pepsi has had commercials by Bob Dole and Faith Hill, Hill , among others.
34
SLOGANS It's clear in looking at the slogans over the years that Coke and Pepsi have very different targeting strategies. Coke is touting itself as the original, the authentic, and appealing to a sense of tradition, positioning itself as an integral part of daily life. Pepsi, on the other hand, is promoting itself as something new, young, and hip, which seems a little odd after over 100 years. But Coke was first, after all. Pepsi has always targeted the youth market more aggressively than Coke.
RESEARCH METHODOLOGY OF COMPARISION
Research in common language refers to a search for knowledge. One can also define research as a scientific and systematic search for pertinent information
35
on specific topic. In this era of cutthroat competition it is of vital importance for any company have a strong foothold in the product market and having a strong distribution network, effective sales promotion and advertising strategies. These pricing policies should also be such which will help them in achieving their targets. Ever company strives to earn profit through maximizing their sales according to varying needs of their customers. The same applies to the soft-drink company also.
Both the two companies PepsiCo, Coca-Cola (I) Ltd. is aiming to rise well above above their their comp competi etito tors. rs. So the the resea research rcher er was was entru entruste sted d to carry carry out out marketing overview about some of the most usually demand soft drink. In order to clearly define the task we obtain ideas and insight through the survey method from primary sources.Field research through observation of customers and distribution channels.
Objective & Limitations The subjects (companies) under study in this project are:-
36
i)
PepsiCo
ii)
Coca-Cola (I) Ltd.
Primary objective The main purpose of this study is determining the different strategies that are adop adopted ted by the comp compan anies ies.. We will will then then see see how effec effectiv tive e these these strategies are in helping the companies achieve their respective targets. The strategies will be evaluated to see which the best amongst them is and which are most effective. Secondary Objectives The secondary objective of the research is to gauge the image of PepsiCo Vis-a --Vis Coca-Cola [I] Ltd. The research was planned to find the effect of the the diff differ eren entt bran brand d posi positi tion on stra strate tegi gies es adop adopte ted d from from time time to time time on audience’s perception. It is believed that the audience is perplexed by almost same appeal by both the companies in their recent advertisements.
37
The need is to identify new avenues and ways to project the image of their company. company. •
To identify the difference in their tone, look and style of communication.
•
To do a comparative study of who comes up with more exciting and innovative offers.
•
To find out the consumer’s perception about efficiency of marketing and the future market leader.
•
To sketch the imagery of the consumers about various brands and both the companies in totally.
For this purpose fieldwork as well as table work was done to complete the project. The various facts and figures of the companies were studied and subsequently suggestions are made, which keep the company the vendors and the consumers in mind.
38
PRODUCT The The term term soft soft drin drink k was orig origin inat ated ed to dist distin ingu guis ish h the the flav flavor ore ed refreshment from hard liquor. Soft drink was flavored to change the habits of earlier Americans Americans who used to have hard liquor. liquor. The fruits and vegetable juices are not considered soft drinks. Pepsi is a pure soft drink, which is enjoyed in our 195 countries. It is made of artificial flavors and contains no fruit juice or fruit pulp.
How soft drinks are made: Soft drink consists of carbonated water and syrup. Adding carbonated gas to water under pressure produces carbonated water. The gas makes the water bubble and fizz in most cases. Syrup is made of a concentrate and sweetener. A concentrate is a blend of flavor and acid. In concentrate for most soft drinks also include coloring. The concentrate concentrate contains a unique blend of ingredients, which give Pepsi its distinctive flavor. Syrup can be also being prepared directly from individual individual ingredients. ingredients. Carbon dioxide gas gives beverage its sparkle and tangy
39
taste and prevents spoilage. While it has not been conclusively proved that carbonation carbonation offers a direct medical benefit, carbonated beverage are also used to alleviate post operative nausea when no other food can be tolerated. Carbon dioxide is supplied to soft drinks by manufactures in a liquid form maintained under approximately 1,200 pounds per square inch pressure in heavy steel containers.
Many of the flavorings found in soft drinks come from natural sources such as fruits juices and oils obtained from roots, citrus fruit peels, and leaves of various plants. Some flavoring are artificial, but a similar to natural flavoring in taste. Citric acid and phosphoric acid give soft drink a tart taste. Caramel is usually used as a coloring in cola drinks. The sweeteners may come from maize, sugar beet or sugarcane. Artificial sweetener, such as saccharine and aspartame is used in Diet Pepsi and Diet Coke.
The mixing is carried out under the highest standards of quality control and accord according ingly ly to preci precise se instr instruc uctio tions ns in orde orderr to insur insure e that that every every cons consum umer er always receives a product of the same trusted quality. The bottling of Pepsi in modern plants such as there are in India is carried out at the rate of 600 bottles 40
a minutes. Pepsi is approved by the National Health Authorities of every country in which it is sold.
Packaging Pepsi is supplied in Returnable glass bottles (200 ml, 250 ml, 300 ml) which is supplied in molded plastic shells. 1.5 liter PET bottles, 330 ml of cans, PMX machines (Fountain Pepsi)
Fountain Pepsi (F P) Dispenses soft Drinks in plastic cups. There are two methods of vending soft drinks.
1. PrePre-mix mix system system - In the the prem premix ix syst system em,, the the fini finish shed ed beve bevera rage ge is prepared by the soft drink manufacturers and filled into 5 to 10 gallon stainless steel tanks. The tanks of the beverage are attached to the vending machine where the beverage is cooled and dispensed.
2. Post-mix system - In post-mix system the vending machine has its own water and carbon dioxide supply. The water is supplied through Aqua Guard 41
purifier and is carbonated as required by carbon dioxide cylinder. It is then mixed with concentrate or flavored syrup which is kept in BIB (Bag in Box) as it is dispensed into the cup. Pepsi has post mix vending machines and coke has pre mix vending machines.
3. Cans & Bottles - Among the different packages packages in the market in the next couple of years could be cans and pet bottles - apart from the standard glass bottles. One of the standard packages that one is likely to see in the coming years is buying more at lower price. Pepsi introduced introduced 200 ml bottles of Pepsi at the price of Rs.6. It was an instant hit while packages of those kinds are also being being worked worked out keeping keeping in view of the rural rural market. But But it could also lead to the killing of the standard 300 ml size bottles that is in vogue
now.
The
consumer
would get a choice of soft drink at a cheaper and an affordable price - even if it means breaking of certain standards shapes and sizes of the packages. The broad strategies of both penetrating the market are still being made. And the amount of thought that is going into it can be made out from the very fact that the manufacturers are thinking of such innovations as the “picnic packages” of the brand for those on holiday trip. The battle will be
42
engrossing as packages will be brought to the market and be pulled by the competing rivals. There would be price wars and competitions on qualities.
Brands – The current Indian market consists of seven-flavor segment. Cola segment is by far the most widely consumed soft drinks. 43
SEGMENT
BRAND
COLA
PEPSI
ORANGE
MIRANDA
CLOUDY LIME
MIRANDA LEMON NIMBOOZ
CLEAR LIME
7-UP
MANGO
SLICE
WATER
AQUAFINA
In addition to these segments, Pepsi has developed wide range of soft drinks such as Diet Pepsi and low sodium Pepsi, Sugar Free -Pepsi Max.
CHARACTERSTICS OF THE PRODUCT
44
These are some of the unique characteristics of the products: 1.
Package is returnable and vulnerable to breakage.
2.
Weight of package is twice as much as that of the product.
3.
Has a seasonal demand resulting in partial idling of the distribution
network. 4.
Demands highlight intensive availability of the product with very low
dealer index essential on account of “impulse demand”. 5.
Occupies more shelf space (or cooler space) per a rupee worth of
investm investment ent than most other other brand brand produc product. t. This factor, factor, coupled coupled with the return ability of the container, involves a very high level of service frequency. 6.
Ratio of distribution costs to selling price is higher than for any other
branded mass consumption product.
All All these these point point to the fact fact that that a pene penetra tratin ting g distr distrib ibuti ution on netwo network rk coupled with efficient feeding are the only means to higher sales.
45
PREFERENCE OF SOFT DRINKS IN A DAY
Once a day
25%
Twice a day
20%
Once a week
5%
Other
50%
Figure-1
46
TO GIVE THE PREFERENCES
More Popular Packaging Taste Price
47
50% 10% 30% 10%
Figure – 2
48
MARKETING STRATEGI STRATEGIES ES OF COMPANY COMPANY AFFECTS THE SALES
Yes No
80% 20%
Figure – 3
49
FORM OF MARKETING M ARKETING STRATEGIES STRATEGIES
Television Advertising Newspaper Advertising Outdoor Advertising Sales Promotion
Figure – 4
50
65% 5% 5% 25%
MORE EFFECTIVE ADVERTISING
Pepsi Co. Coke Co.
Figure – 5
51
60% 40%
CREATIVE CREATIVE AND APPEALING ADVERTISING OF THE SOFT DRINK COMPANY
Pepsi Co. Coke Co.
Figure – 6
52
65% 35%
INNOVATIVE AND EXCITING OFFERS
Pepsi Co. Coke Co.
Figure –7
53
55% 45%
MARKET SHARE PERCENTAGE IN GHAZIABAD-2008
Pepsi Coke Pure Drinks
Figure - 8
54
48% 49% 3%
MARKET PERCENTAGE PERCENTAGE SHARE IN ALL OVER INDIA 2008
Pepsi Coke Local Brand
Figure - 9
55
44% 51% 5%
FINDINGS & ANALYSIS The Indian soft drinks market is at 140 million cases per year. This is very low, low, even even as compa compare red d to Pakis Pakistan tan and and Bang Banglad lades esh. h. All All these these factor factors s together have contributed to a 20% growth in the soft drinks industry. If this demand continues to grow at 20% annually, within 10 years the volumes could reach 1 billion cases. This kind of growth is the reason for the entry of the two giants of the soft drink industry of the world. Coca-Cola and Pepsi together control 95% of the entire Indian market. The rest of the 5% is shared by companies like Cadbury-Schweppes etc. The total no. of cases sold are 140 million of these 77 million cases of Cola drinks are sold and 63 million of non-cola drinks. There is a rapid increase in the sale of cola soft drinks Whereas in 1990, they accounted for a third of all soft drinks sold, now their share is well over half. Also cola sales are growing at a faster rate than non-colas. One of the reasons for this could be the aggressive marketing strategies for Cola drinks by Pepsi and Coca-Cola.
56
Pepsi findings: Pepsi is the largest selling soft drink in India today. In Ghaziabad it has 48% of the market share. In India it has 44% of the market share making it the largest selling soft drink, but the second largest company in terms of sales.
The soft drinks in Pepsi Foods LTD include : 1. Pepsi 2. Mirinda Orange 3. 7-Up 4. Mirinda Lemon 5. Slice
6. Mountain Dew 7. Diet pepsi 8. Aquafina
The main advantage the Pepsi has over its nearest competitor i.e., CocaCola. Coca Cola is the first multinational to enter India, in the soft drinks sector. Pepsi officials and ‘Dial-a-Pepsi’ scheme to grow the market, instead
57
of givin giving g disco discoun unts ts at the reta retailil level. level. Anothe Anotherr point point which which attri attribu buted ted to Pepsi’s success success is the bottling operations. operations. Pepsi does most of its bottling on its own. own. Anoth Another er signi signific fican antt inves investm tment ent of Peps Pepsii has has been been foun fountai tains ns.. Fountains Fountains have considerably considerably increased sales of Pepsi, as they have offered consumers a whole new way to experience soft drink. According to a study done, 80% of all soft drinks are consumed on premise, at the point of purchase, rather than at home; thus the fountain initiative has paid off.
Thus Thus we see that that Peps Pepsii has has follo followe wed d aggre aggressi ssive ve marke marketin ting g strate strategie gies s making they get into the minds of the consumer by being visible inside and outsid outside e the cons consume umers rs home home by way of telev televis isio ion, n, radio radio News Newspap papers ers,, hoarding, sales-promotion schemes, etc.
58
SWOT ANALYSIS As per my findings and survey, I found that the Strengths, weaknesses, opportunities and threats are as mentioned below: Strengths:
R&D for the improvement of products, technology innovation in the production process is the major strength of PEPSICO Competitive advantage of having two clear lime product i.e. 7up & Mountain Dew Economics of scale and economies of scope through large size and diversification. Distribution Network is also one of the biggest strength Pepsi’s promotional schemes are far better than the coke
Weaknesses:
59
Competitive disadvantage of having single cola product against Coke In some cases price matters a lot
Opportunities:
Stable Legal and political environment that offers good potential for growth Income level of customers are rising there by their purchasing power akso rising Population of India is the greatest of opportunity for the industry
Threats:
One of the major threat that Pepsi is facing not from smaller organization but from its competitor that is coke Somewhere the price of substitute product matter
OBSERVATION The PepsiCo. Using different marketing strategy to increase their sales. The most important strategy chosen by Pepsi co. is to attract the dealer and consumer by giving certain element to increase the visibility of the product and make the consumer aware of the product. In technical term Pepsi co. called it as RED (RIGHT EXECUTION DAILY). For this I collected the data from various outlets located in Ghaziabad.
60
Data collected by me from the following areas: Salimar Garden •
•
Surya Nagar
•
Indrapuram
•
Vaishali-I
•
Vashali-II
•
Rajendra Nagar
•
Vasundhra
•
Shaheed Nagar
•
Mohan Nagar
•
Bhopura
•
Jhanda Pur
•
Border
•
Maharajpur
•
Kaushambi
61
DAY - 01 ROUTE – Salimar Garden. Truck no.:- UP-16 9029 Salesman Name: Rajesh S.NO.
NAME OF OUTLET
PEPSI(share)
COKE(share)
FREEZE
1 2
Chauhan Sweet Shri Ram Sweet & Fast Food Corner Ram Genral Store Swami Dipartmental store & Dairy Daily need Departmental store Jai durga store
40%
60%
Coke
60%
40%
Pepsi
20%
80%
No
80%
20%
Pepsi
60%
40%
55%
45%
70%
30%
50%
50%
Freezer (pepsi) Freezer (coke) Pepsi & coke Pepsi
60%
40%
40%
60%
60% 40% 100%
40% 60% 0%
70%
30%
50%
50%
Pepsi, coke Pepsi
30%
70%
Freezer
3 4 5 6 7 8 9 10 11 12 13 14 15 16
Krishna General store OM Sai General store Shiv Provision & Genral st. Chawla Bakery Agarwal Sweet Mother Bakery Rajat Vastra Bhandar New Agrwal Sweet Plaza South Indian St. Avi Paan 62
Pepsi, coke Pepsi Coke Private
17 18 19 20 21 22 23 24 25 26 27 28 29 30
Bhandar Jai Luxmi Pan Bhandar Raj Kirana & General St. Ruchi Dipartmental st. Gurunanak St. Shivani Super st. Shri Bala ji Kirana st. Sindhi Stationary St. Tyagi Departmental st. Ambe Dipartmental St. Agrwal Sweet Corner Deep Genral St. Ambe St. Jai Luxmi Store Bhandari Provision store
Note: This
50%
50%
60%
40%
(Coke) Freezer (Coke) Coke
70%
30%
Pepsi
35%
100% 65%
40%
60%
Coke Coke, Pepsi Pepsi, Coke Private
100% 100%
Pepsi
50%
50%
Pepsi, Coke
60%
40%
Pepsi
50% 70%
50% 30%
60% 40%
40% 60%
Pepsi Pepsi, Coke Private Private
data show that tha t the market captured by PepsiCo is quite larger than the coke. In this area market share shar e of PepsiCo is 52.33% & coke is 47.67%
63
DAY - 02 ROUTE – Surya Nagar. Truck no.- UP-16 9017 Salesman NameS.NO. 1
NAME OF OUTLET
PEPSI(share)
COKE(share)
FREEZE
80%
20%
Private
90% 100%
10% 0%
Private No
60%
40%
Pepsi
60% 30%
40% 70%
60%
40%
pepsi Freezer (coke) No
70%
30%
55%
45%
9
Pandit JI Cold Drinks Gomti Paan Bhandar Sukh Sagar Paan Bhandar Ramu Paan Bhandar Hari Provision store Auchu Gen. store Garg Provision store Rastogi Provision store Mothers Pastry
10
Malhotra Hotel
50%
50%
11
Satguru
00%
100%
2 3 4 5 6 7 8
64
Freezer (Mother Dairy) Pepsi, Coke Pepsi, coke Coke
12 13
Telicom Centre Agrwal Sweet India Sukh Sagar Hotels
50%
50%
Coke
60%
40%
14
Gym Point
60%
40%
15 16
Rakesh Store Ankur Store
50% 50%
50% 50%
17
Ramu Provision Store Maa Vaishno Departmental Store Pritish Dipartmental st. Mehndi Restorent Rohit Provision st. Radhe Krishna Dept. Store I-way Santusty Dept. Store Ashiyana Departmental st. Aadarsh Provisional Store Gupta confectionary Piyush Snacks & confectionery Shivam Dept. Store
60%
40%
50%
50%
Private Freezer (Mother Dairy) Pepsi, coke No Freezer (Coke) Freezer (Coke) Coke
30%
70%
Coke
75%
25%
Pepsi,Coke
30%
70%
Private
25%
75%
NO
18 19 20 21 22 23 24 25 26 27 28
65
100%
Pepsi
60%
40%
Pepsi
50%
50%
Pepsi
55%
45%
Pepsi
50%
50%
Pepsi, Coke
65%
35%
Pvt. Freezer
29
Kurban Paan Bhandar Mohit General store
30
60%
40%
Private
65%
35%
Pepsi
: In Note
this t his area the portion of PepsiCo in the market Share is also high in comparison with Coke. In this area market share of PepsiCo is 55.17% & coke is 44.83%.This
shows that t hat PepsiCo PepsiCo has good market value.
DAY – 03 ROUTE – Indirapuram Truck no.:- UP-16 9015 Salesman Name- Ramkumar S.NO.
NAME OF OUTLET
PEPSI(share)
COKE(share)
FREEZE
1
Tinku Tea Point Prajapati paan Bhandar Best Food Plaza park Yadav Paan Bhandar Chhtu General Store Thakur ji Milk Agency
60%
40%
Pvt.
70% 100%
30% 0%
Private Pepsi
2 3 4 5 6
66
Pvt. 60%
40% Pvt.
60% 50%
40% 50%
Pvt.
7 8 9 10 11 12 13 14
Aakash paan Bhandar Agrawal Sweet Corner Mishra confectionery Dipanshu Restaurant Agrawal sweet shopper Sunil Dairy Crystal Bakers
60%
40%
Freezer
50%
50%
30%
70%
Pepsi, Coke Coke
60%
40%
Pepsi
50%
50%
60% 50%
40% 50%
60%
40%
Coke, pepsi Freezer Private Freezer Coke
50%
50%
16 17 18
Sanjay kirana Store Aakash Departmental store Thakur Bakers Narang Store Rangilal Store
70% 30% _
30% 70% 100%
Pepsi Pepsi
19
Robson Store
30%
70%
Freezer
20 21 22
Welcome Snacks Krishna Dairy Sweet Palace
60% 40% 40%
40% 60% 60%
Pepsi,Coke Private NO
23 24
40% 60%
60% 40%
25 26
Hiralal Juice Raj General Store Unique Pastry Agrawal Store
50% 60%
50% 40%
Coke Pepsi, Coke Private Pepsi,Coke
27
Family Bakers
50%
50%
Pepsi
28
Mahalaxmi Store
60%
40%
Pepsi
29
Kajal drinks
60%
40%
Coke
15
67
Cold
No
30
Ganpati General Store Note: As
70%
30%
Pepsi
per the survey of this area I personally found that the PepsiCo
brands are available at almost most of the shop and the share of PepsiCo against coke a little more higher. Its market share is near about 53% and Coke is 47%.
DAY – 04 ROUTE – Vaishali Truck no.- UP-16 90 Salesman NameS.NO.
NAME OF OUTLET 68
PEPSI(share)
COKE(share)
FREEZE
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22
Sri Bala ji Departmental Shop Bombay Bajar Departmental store Hotel Abhay Palace Raju Tea Shop Swaad Restaurent Navin Auto Service & store Shri Paan Bhandar Jaya General Store Gupta swets S.K.Storage Shiddharth Provision Store Sri Ram Store Bala ji Bakers Srinagar Fabrics Vijay Paan Bhandar Chaurasiya Paan Bhandar Prem Paan Bhandar Mehfil chicken Poiint Sriram Stores Pintu Paan Bhandar Deepak STD Shyam sweet & 69
60%
40%
Pepsi,coke
60%
40%
Private
50%
50%
Pepsi
60% 00
40% 100%
Coke Pvt.
30%
70%
Pvt.
50%
50%
Coke
50%
50%
30% 50% 50%
70% 50% 50%
Pepsi, Coke Coke Pvt. Coke, pepsi
100% 50% 80%
00 50% 20%
Pepsi Coke, Own Pepsi,Coke
100%
00
No
80%
20%
NO
60%
40%
Pepsi
60%
40%
Pepsi
30%
70%
No
60%
40%
Coke
40% 60%
60% 40%
Private Coke
confectionery 23 24 25 26 27 28 29 30
Vijay Paan Bhandar Mani sweet corner & café Catty pastry Shop Rohtash general store Sri general store Agrawal Store Varun Pan Bhandar Ram Ratan Gupta
NOTE: In
00
100%
Coke
50%
50%
Pepsi
60%
40%
Pvt.
50%
50%
Pepsi
80%
20%
Pepsi
40%
60%
Pepsi
60%
40%
Pepsi
70%
30%
Pvt.
this area the market share of PepsiCo is greater than coke. PepsiCo
is having approx 54% and coke is 46% 4 6% only.
70
DAY – 05 ROUTE – Vasundhara Truck no.:- UP-16 8016 Salesman Name- Mr. Ram Niwas S.NO.
NAME OF OUTLET
PEPSI(share)
COKE(share)
FREEZE
1 2
Pal Dairy Baba Provision Store Chaurasiya Paan bhandar Vishnu Provison Store Agrawal sweet India Sai Dairy Taya general store Chaurasiya Paan Mewar Inst. Bharti general store Unique Pastry
40% 60%
60% 40%
30%
70%
Pvt. Pepsi, coke Freezer
40%
60%
Pvt.
30%
70%
40% 80%
60% 20%
Pepsi, coke Pepsi Coke
50%
50%
Freezer
40% 60%
60% 40%
Pepsi,Coke Pepsi
50%
50%
30%
70%
Coke, pepsi Pvt.
30% 50%
70% 50%
Coke,Pepsi Pepsi
20%
80%
Coke
50% 40%
50% 60%
Freezer Pepsi
55%
45%
Pvt.
30%
70%
Freezer
3 4 5 6 7 8 9 10 11 12
18
Vijay Restaurent Popular pastry Bakers John Shop Viru confectionery I A PAAN Vijay Confectionery Home sweets
19
Rahul Dairy
13 14 15 16 17
71
20 21 22 23
Aayush Provision Store Morning Departmental store A-Z Store
50%
50%
Pepsi,Coke
40%
60%
Private
60%
40%
Pepsi,Coke
60%
40%
Pepsi
24
Surya pastry point Agrawal Sweets
50%
50%
Pepsi,coke
25
Honey Dairy
60%
40%
Freezer
26
Gadhwal Paneer
60%
40%
Pepsi
27
Rajsthan Dairy
60%
40%
Pepsi
28
Tyagi general Store
40%
60%
Pvt.
29
Singh general Store Jha general store
55%
45%
Coke
60%
40%
Pvt.
30
NOTE: In this area after surveying these shops I found that the PepsiCo is having only 47% of market share rests are captured by Coke.
72
DAY – 06 ROUTE – Mohan Nagar Truck no.:- UP-16 9016 Salesman Name- Mr. Anil kumar S.NO.
NAME OF OUTLET
PEPSI(share)
COKE(share)
FREEZE
1
M/S Sarla Fabric Pvt. Ltd. Nithila Paan bhandar B.K.Paan shop Bhola Paan M.T.Juice corner Jaishwal Enterprizes Pooja General Store Paras Dairy BLS Inst. Of Management Harihar Food corner Maa Bhagwati sweets Pal Dhaba Aahuja Vaishno Bhojnalay Deepak Dhaba DabaS
100%
00
Pvt.
50%
50%
Pvt.
50% 30% 50%
50% 70% 50%
Freezer Freezer Pepsi,coke
50%
50%
Coke
40%
60%
Pepsi
50% 30%
50% 70%
Pepsi Pepsi
50%
50%
Pepsi,coke
60%
40%
Pepsi
40% 45%
60% 55%
Pepsi,coke Coke,Pepsi
35% 60%
65% 40%
Coke Pepsi,Coke
2 3 4 5 6 7 8 9 10 11 12 13 14 15
73
16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
Resrtaurent Pradhan Dhaba Mohan Meakins Chaurasiya Paan Bhandar Karan Pastry Durga confectionery Yadav Paan Bhandar Chaudhari restaurant Irfan Paan Bhandar Gurukripa Fresh Fruit juice corner Raja vaishno bhojanalay Paul bhojanalay Agrawal Store Modern College of Law New Aman Refreshing Point Note: After
50% 50% 60%
50% 50% 40%
Pepsi Pepsi Pepsi
60%
40%
Pepsi
40%
60%
Pvt.
40%
60%
Pvt.
40%
60%
Pvt.
60%
40%
Freezer
50%
50%
Pepsi,coke
40%
60%
Pepsi,coke
50%
50%
Pepsi,coke
50%
50%
Pepsi
40%
60%
Pepsi,coke
40%
60%
Pepsi
50%
50%
Pvt.
having a visit to these shops I came to know that this market is
also a coke market because Coke is having 54% share and PepsiCo is only 46%.
74
DAY – 07 ROUTE – Saheed Nagar Truck no.:- UP-16 90 Salesman Name-Kuldeep S.NO. 1 2 3 4 5 6 7 8
NAME OF OUTLET
PEPSI(share)
COKE(share)
FREEZE
Bhaskar Store Pappu Provision Store Ramesh Cycle Store Rakesh General Store Avon Store Sri Krishna Bhojanalay Food plus chicken Plaza Chaudhary Sudhh Bhojanalay
60% 50%
40% 50%
Pepsi Pvt.
40%
60%
Pvt.
50%
50%
Pvt
50% 45%
50% 55%
Pvt. Pvt.
40%
60%
Pepsi
50%
50%
Coke
75
9 10
40% 50%
60% 50%
Pvt. Pepsi
50% 60%
50% 40%
Pepsi Pepsi,coke
60% 35% 40% 50% 50%
40% 65% 60% 50% 35%
Pepsi Pepsi Pepsi Pepsi Pepsi
60%
40%
Pepsi
40%
50%
Pepsi
60% 40%
40% 60%
Pvt. Pvt.
40%
60%
Pvt.
60%
40%
Pepsi
30%
70%
Pvt.
Chaudhary Restaurent Priya General Store The Unique Sweets & Namkeen Sri R$am General Store
40%
60%
Pepsi
60%
40%
Pepsi
40%
60%
Pvt.
60%
40%
Pepsi
29
Gopal Dairy
70%
30%
Pepsi
30
Karim General Store
40%
60%
Pepsi
11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28
Agrawal Corner Tyagi Departmental Store OM General Store Sharma Provision & General Store Ambe Sweets Jagdamba Sweets Officers Mess Krishna Sweets Suvidha Departmental Store Sri Bala Ji general Store Baba ji General Store M.H.Confectioners Ramesh General Store Rakeeb General Store Tamanna Confectioners Om general Store
76
NOTE: In
Saheed Nagar Area the sale of PepsiCo drinks is quite equal to the
Cokes. Coke Is having 51% market Sha re and PepsiCo is at 49%.
DAY – 08 ROUTE – Border Truck no.:- UP-16 9016 Salesman Name-Rakesh Sharma S.NO.
NAME OF OUTLET
PEPSI(share)
COKE(share)
FREEZE
1
Laxmi Provision Store Amba Provision store
60%
40%
Pepsi
80%
20%
Pepsi
2
77
3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23
Mohan General Store Vijay General Store Nidhi Misthan & Namkeen Muskan Bakery Rama Confectioners Pooja Sweets Bangla Sweet corner Gopal halwai & catters Goswami Paan Bhandar Lavkush Provision Store Chhotu Provision Store Tea Point Rajendra Tea Stall Raju Provision Store Raj Tea Point Maa Janki Sudhh Bhojanalay Chaudhari Tea Stall Bisht Sweet corner Vishnu Tea Point Chaudhary Bhojnalay Gupta General 78
40%
60%
Pvt.
50%
50%
Pvt
20%
80%
Pvt.
65% 00
35% 100%
Pepsi Pvt.
20% 60%
80% 40%
Pvt. Pepsi
30%
70%
Pvt.
70%
30%
Pepsi
60%
40%
Pepsi
60%
40%
Pepsi
65% 40%
35% 60%
Pvt. Pvt.
60%
40%
Pepsi
00 30%
100% 70%
Pvt. Pvt.
30%
70%
Coke
50%
50%
20%
80%
Pepsi, coke Pvt.
40%
60%
Pvt.
30%
70%
Pvt.
24 25 26 27
Store Jain provision Store Gyani General Store Sabrwal General Store Vaushno Dhaba
30%
70%
Pvt.
100%
00
Pvt.
100%
00
Pvt.
50%
50%
Pepsi
28
Khandelwal Sweets
40%
60%
Pvt.
29
Chinku Tea Point Ravi Genmeral Store
20%
80%
Pvt.
100%
00
Pvt.
30
NOTE: This
data shows that the market share of PepsiCo is 0nly 48% and
rests are covered by Coke.
DAY – 09 ROUTE – Vaishali-II 79
Truck no.- UP-16 90 Salesman Name-Anil Kumar Sharma S.NO.
NAME OF OUTLET
PEPSI(share)
COKE(share)
FREEZE
1 2
Daksha Telecom Banarasi Paan Bhandar Chhotu Tea Stall Santosh Paan Bhandar Khushbu Pastry Shop Agrawal Departmental Store Preeti Departmental Store Mamta Provisiion Store Anuj General Store Shiv Paan Bhandar Mohit Sweets Vidya Stationery Rawat general Store Sharma Provision Store New style paan Bhandar Amarson provision Store Rahul
50% 60%
50% 40%
Pvt. Pvt.
60%
40%
Pvt.
40%
60%
Pvt
70%
30%
Pvt.
60%
40%
Pvt.
50%
50%
Pvt.
00
100%
Pvt.
50%
50%
Pvt.
70%
30%
Pvt.
60% 50%
40% 50%
Pepsi Pvt.
00
100%
Pvt.
00
100%
Pvt.
00
100%
Pvt.
60%
40%
Pepsi
30%
70%
Pepsi
3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
80
18 19 20 21 22 23 24 25 26 27
provision Store Ramesh Paan Bhandar Rahul Paan Bhandar Amul parlour Raj milk Dairy Gadhwal Paneer Bhandar R.K.Provisiona Store Pandit Ji General Store The bakery Shop Singhal provision Store Suvidha Store
70%
30%
Pepsi
50%
50%
Pvt.
60% 50% 50%
40% 50% 50%
Pepsi Pepsi Pvt.
50%
50%
Pvt.
100%
00
Pepsi
20%
80%
Coke
100%
00
Pepsi
20%
80%
Pvt.
28
Uttranchal general Store
60%
40%
Pvt.
29
Shubham Provision Store Jagdamba Tea Stall
45%
55%
Coke
50%
50%
Pvt.
30
NOTE: As
per the survey of this area I found that the coke is having higher
market share than PepsiCo. PepsiCo is having 47% a nd coke is about 53%.
81
DAY – 10 ROUTE – Bhopura Truck no.- UP-16 90 Salesman Name- M.H.Kalam S.NO. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
NAME OF OUTLET
PEPSI(share)
COKE(share)
FREEZE
Aajad Tiranga Hotel Mulla Ji Paan Bhandar Sardar ji Haji Sweets
50%
50%
Pepsi
50%
50%
Pvt.
40% 30%
60% 70%
70%
30%
Pvt. Pepsi, coke Pepsi
60% 40% 60% 60%
40% 60% 40% 40%
Pepsi Coke Coke Pepsi
50%
50%
Pepsi
50%
50%
30% 80%
70% 20%
Pepsi, Coke Pepsi,Coke Pepsi
40%
60%
Coke
60%
40%
30%
70%
Coke, pepsi Coke,Pepsi
Haji Faiz Sweets Yadav Dhaba Babu Dhaba KAKA tea Stall Akhtar Tea Stall Naresh paan Bhandar Najakat Ali Agrawal Sweets Rajpoot General Store Agrwal Provision Store Ravi General Store Annu go Store
82
17 18 19 20 21 22 23 24 25 26 27
Kuldeep Kirana Store Ravi Paan Store Kailash Tea Stall Agrawal sweets A-One Water Suppliers Pooja General Store Munna Tea Point Pandit Ji General Store The bakery Shop Singhal provision Store Suvidha Store
60%
40%
Pepsi
50%
50%
Pepsi
60%
40%
Pvt.
45%
55%
30%
70%
Pepsi, Coke Pvt.
50%
50%
Pvt.
80%
20%
Pepsi
60%
40%
Pepsi
20%
80%
Coke
60%
40%
Pepsi
20%
80%
Pvt.
28
Uttranchal general Store
60%
40%
Pvt.
29
Shubham Provision Store Jagdamba Tea Stall
45%
55%
Coke
30%
70%
Pvt.
30
Note: In
this area the market captured by the two cola companies are quite equal. PepsiCo is 49% and Coke is having 51%.
83
DAY – 11 ROUTE – Jhandapur Truck no.- UP-16 90 Salesman Name-Kailash S.NO.
NAME OF OUTLET
PEPSI(share)
COKE(share)
FREEZE
1 2
Paal Sweets Kausik General Store Anil Departmental Store Paal Sweet House Kausik Hotel Bansal Dairy Malik dairy Paal Dairy Swami General Store Jai Sai Bakery & confectionery Vashishth
00 50%
100% 50%
Pepsi Pvt.
40%
60%
Pvt.
55%
45%
Pepsi
30% 00 50% 70% 50%
70% 100% 50% 30% 50%
Pvt. Pvt. Pvt. Coke Pvt.
00
100%
Pvt.
70%
30%
Pvt.
3 4 5 6 7 8 9 10 11
84
12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
General Store Bharat General Store Bunty General Store Pandit ji tea stall Notel Dhaba Bala ji kirana Store
50%
50%
Pvt.
100%
00
Coke
100%
00
Coke
0 65%
100% 35%
Pvt. Coke
40%
60%
Pvt.
00
100%
Pvt.
60%
40%
Coke
30%
70%
Pepsi
00
100%
Pepsi
50%
50%
Pvt.
Yadav Dairy Paal Sweet House Mukesh General Store Raghav Hotel
50% 00
50% 100%
Pepsi Pepsi
20%
80%
Pvt.
50%
50%
Pvt.
Kausik Provison Store Bakery shop
20%
80%
Pvt.
40%
60%
Pepsi
55%
45%
Pvt.
50%
50%
Pvt.
Mangal Kirana Store Raghav Sweet Corner Nanak Chand Parag Dairy Jagdamba Sweet House Rathore Sweet House Hotel dhaba
Gopal Tea Stall Rastogi General Store
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Note: The
market captured by PepsiCo is lesser than the coke Because in
this area coke is having aprox 60% of the market share and PepsiCo is only 40%.
PUBLIC RELATIONS ANGLE Innovative and exciting offers The respondents were asked to compare between PepsiCo and Coca-Cola [I] Ltd. in terms of who comes up with innovative and exciting offers, or rather things which are lively and interesting to participate. Quick and responsive to different occasions and events. Comparing PepsiCo and Coca-Cola [I] Ltd, 55% of the respondents replied that that it was was undou undoubte btedly dly Pepsi PepsiCo Co.. They They supp support orted ed their their state stateme ment nt with with
86
reasoning, saying so that PepsiCo was first to associate with India’s 50 years of independence. On the other hand 22% of the respondents felt that Coca-Cola [I] Ltd. is not trailing back. It sponsors mega events like different Cricket tournaments, Olympic Games, World Cup Football etc.19% of the respondents came up with a more balanced answer. They said if one of the companies sponsors one event it’s sure that the other will definitely go on for the next. It’s a tough tussle and is really difficult to demarcate today. Future leader in the market When the respondents were asked about their perceptions, as who would be the future leader in the market, 42% of the respondents replied in favor of PepsiCo. According to them PepsiCo has entered Indian market prior to Coca-Cola [I] Ltd. and has strong foothold now. Above that it is innovative and there is freshness in its Ads. The only thing required is to maintain its positi position. on.38% 38% of the resp respon onden dents ts claime claimed d that that after after takin taking g over over Parle Parle Industries Coca-Cola [I] Ltd. is in a comfortable position. If it can promote brands of Parle Industries like Thums Up and Limca which has a substantial substantial market in India, it may turn out to be the leader in future.
87
Again 15% of the respondents feel that both the companies are fighting tooth and nail for supremacy. The one which commits an error in its strategy will trail behind.
88
CONLUSIONS Pepsi is the market leader in terms of soft drinks in India, but comes second to Coca-Cola which consists of Coca-Cola brands. Pepsi’s main target is obviously to be the market leader and leave its nearest competitor, Coca-Cola, far behind. To achieve this Pepsi seems to be relyi relying ng on mass mass adve adverti rtisin sing. g. They They spen spend d about about 60-70 60-70 crore crore rupee rupees s annually on marketing activities. The consumer is bombarded with Pepsi advertisements, sign, logo’s etc., everywhere. Pepsi’s core market is the young –adult and Pepsi is taking great measures to change the perception of these young-adults., Pepsi wants that these consumers should associate all colas as Pepsi, the brand Pepsi and cola should be synonymous with each other. other. This they are trying to do by getting the the hero heroes es of thes these e cons consum umer ers s to endo endors rse e thei theirr prod produc uctt e.g. e.g. Sach Sachin in Tendulkar and also by advertising for and by youngsters. Pepsi Pepsi drinks drinks are are avai availab lable le in almo almost st the whole whole of India India,, this this shows shows the importance paid to distribution. Brand loyalists are very few in the market. Thus the drink should be easily available, so that consumers cannot shift their preferences.
89
Consumers For For the the purp purpos ose e of the the stud study y, ques questi tion onna nair ires es were were prep prepar ared ed for for the the Consumers. Care was taken to interview all types of consumers, i.e. a. Different age groups b. Males and females c. People from different localities, etc. In all about 100 consumers were interviewed. The conclusions that one can draw from these answers provided by the consumers showed that marketing activities do form a major part of the decision. One thing that was common amongst all the consumers who were once a day or once a week. The number one factors the influences a customer while buying a soft-drink was taste. This was true for all the consumers who were were inte interv rvie iewe wed. d. The The rest rest of the the conc conclu lusi sion ons s as dedu deduct cted ed from from the the questionnaires are as follows :
Conclusion (consumers) The younger generation preferred soft drinks to the older generation.
90
a. Children upto 15 years of age liked to have soft drinks upto 2-3 times a day. b. Young adults liked to have soft drinks upto 1-2 times a day. c. Adults liked to have soft drinks about once or twice a week.
Children Children preferre preferred d Coca-C Coca-Cola ola Fanta, Fanta, Mirinda Mirinda orange. orange. Young adults adults liked liked Pepsi, Mountain Dew. The older generation preferred Coca-Cola, Limca & Mirinda Lemon. The reason reason given given for choic choice e of favori favorite te soft soft drink drink was was taste taste and and easy easy availability. Only if the consumer liked the taste of drink, he would have it again.95% of the consumers felt that marketing strategies of the company did affect the sales of their soft-drink.
Marketing strategy affect or not
100% 80% 60%
yes
40%
no
20% 0%
91
Marketing strategies made the consumer try a drink for the first time. The second time it was the consumer’s choice himself and not strategy could affect that. Youngsters were more acceptable to change. They tried different drinks, Cola and non-Cola. Adults Adults stick to one and they prefer drinks that do not affect their health, like Limca.
Major number of people found television advertising to be the most effective. Young and the old, all liked to watch the advertisements on television. Sponsoring events, outdoor advertising and sales promotion schemes were second choice of the consumers. Under television advertising, Pepsi came in as the number 1 favorite of the people the advertisement of Shah-Rukh Khan han and the dog was the the favor avorit ite e of the consumers. Their new adve advert rtis isem emen entt of Miri Mirind nda a Lem Lemon is also also lift lifted ed by the the peop people le.. The The advertisement that came in second was, the Coca-Cola advertisement of the people Cricket and the song Must-Kalander going on at the back. These, advert advertise iseme ment nt remain remained ed most most in the the minds minds of the peopl people e Most Most of the consumers consumers felt that Pepsi was the market leader in the soft-drink soft-drink industry, industry, in
92
Delhi as well as in India. Whereas Whereas while Pepsi is the leader in Delhi, in India Coca-Cola is number one. 99% of the consumers interviewed felt that the marketing strategies of the Coca-Cola and Pepsi have helped them in attaining the huge market share that they possess.Women and children prefer cans as compared to men. These are the major conclusion that can be drawn about a consumers’ behaviour. behaviour. Companies Companies must take the initiative initiative of finding out the habits of the consumers and then changing them, in their favour.
RECOMMENDATIONS Soft drinks are an impulse product. When a person is thirsty, he would first think of water or tea. Some even would prefer ‘Nimbu Pani’. The Indian population is the largest in the world today; there can be no other country in the world, which provides so much of an opportunity for the softdrink manufacturers. manufacturers. The Indian soft drink market is at 140 million cases per year, this is very low. Thus the consumption of soft drink can go up.
93
Coca-Co Coca-Cola la wants wants to accomp accomplish lish this feat by themse themselves. lves. To To do this this the industry has to take certain steps. All the companies are fighting to get a major share of this growing market. They should all try to increase the total market along with their individual shares. On the basis of all the field work and table work done, some suggestions can be made, which may help the company in increasing the total market as well as the sale of the companies. The various suggestions that can be made are as follows:•
Soft drinks retail at prices between Rs. 6 and Rs. 10. These are 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 in other countries, the norm is five minutes. Thus to increase the total market of soft drinks, manufactures should try and decrease the prices, so as to increase sales.
•
Availability is a major factor, which makes the consumer buy a soft drink drink.. Soft Soft drink drinks s shou should ld be made made availa available ble more more read readily ily than than present.
•
Soft drink cans which are very convenient, as the consumer can take them anywhere, unlike a bottle, are very expensive retailing
94
from Rs. 20-Rs. 25. To increase sale of cans, this price should be brought down. Innova Innovatio tions ns incre increase ase sales sales of comp company any.. Thus Thus the compa compani nies es shoul should d constant constantly ly come come out with with innovati innovative ve ideas.Ex ideas.Examp ample-3 le-300 00 ml,250m ml,250mll plastic plastic bottles, which the consumer can take with him, unlike the glass bottles, whic which h he has has to retu return rn.. Plast lastic ic bott bottle les s can can even even be used used again gain by households for various purposes. The compani companies es should should conduct conduct studies studies to get to know about consumer consumer habits. If the companies know all this and more about Indian consumer behaviour, it could tell them how to sell their drinks, so as to increase sales. It is seen In India, that people prefer having their drinks with or after food. Companies Companies could have commercials commercials which show people enjoying their drink with a good meal, so that consumers associate drinking soft drinks while having food. Companies should try to educate the consumer about the health related subject. For e.g:a) Limca is recommended to patients by doctors. b) Cola drinks are known to be very fattening ,
95
Companies should try to build high brand equity. This provides a number of advantages to the company. a) The company enjoys reduced marketing costs because of high level of consumer brand awareness and loyalty. b) The The comp compan any y will will have have more more trad trade e leve levera rage ge in barg bargai aini ning ng with ith distributors and retailers since the customer expects them to carry the brand. c) The company can change a higher price than its competitors because the brand has higher perceived quality. d) The company can more easily launch brand extension. e) Above all, the brand offers the company some defence against fierce price competition. The companies should go in for diversification Once the brand is known, it is easier to sell more of its products.
Advertising is a way to build brand image. It does not promote quick selling. Thus companies can use advertising for: a) Brand image building
96
b) Reminder advertising, reminding people to buy these drinks.
c) Reinforcement advertising-Telling people that they have made the right choice. Television advertising seems to make a impact on the consumers (based on questionnaire answers) so companies should concentrate more on television advertisements. Sales promotion tools create a stronger and quicker response. Thus sales promotion tools such as coupons, contests, premiums and the like should be used to dramatize product offers and to boost sales. Sales-promotion effects are usually short run and induce the people to purchase soft drinks, now. CocaCoca-Co Cola la and and Pepsi Pepsi have have taken taken up spon sponsor soring ing of event events s on a major major scale.All kinds or events, whether big (Wills Worked cup) or small (college cont contes ests ts)) have have eith either er Pepsi epsi or Coke Coke banne anners rs of spon sponso sors rshi hip. p. The The effectiveness of this can be questioned. Whether these activities increase sales or not is a big huge question mark.
97
BIBLIOGRAPHY
Marketing Management- By Philip Kotler
Business world
Out look
Times of India
www.Pepsico.indialtd
www.pepsico/freewekipedia
Research methodology- By C. R. Kothari
98
QUISTIONAIRE The questionnaire had been designed in such a way to find out: • • • • • •
The effectiveness of distribution channel The current market status of this brand The drawbacks in the product The drawbacks in the distribution channel The most demanded brand The most demanded flavor
1. Name of the the outlet _______ ____________ __________ ___________ _______ _
99
2. Contact Contact Person
___________ _________________ ___________ _______ __
3. Address
________________________
4. Teleph Telephone one Number Number 5. Type Type of Organi Organizati zation on a . C on on ve ve ni ni en en ce ce b . G ro ro ce ce ry ry c. E & D
Q1. Which brand of cold drinks do you sale more?
Ans. Pepsi
Co ke
Q2. Which flavor cold drinks do you sale more?
100
Ans.
Q3. What is your monthly sale? Ans.
Q4. Which brand of cold drinks do you prefer to sell more? Ans. Pepsi
Co ke
Q5. Why do you prefer to sell this particular brand more? Ans. a ) E as a s il i l y av av a il il ab a b le le b ) M or or e de de ma m a nd nd c ) Q ua ua li l i ty t y f ac a c to to r
Q6. Generally which brand of cold drinks customer/ consumers demands?
101
Ans.
Q7. When you talk about drinks which brand comes to your mind? Ans.
Q8. Whether the customers are already aware about this brand?
Ans. Yes
No
Q9. Which are the brands available in your shop? Ans.
Q10. Number of buyers who buy this brand per day?
Ans. a) 0- 5 b) 5-10 c ) 10-15 102
d) Above 15
Q11. Are you satisfied with the current margin on this brand? Ans. Yes
No
Q12. Whether you are getting any complaints from customers, specify? Ans.
Q13. To which brand and reason. Ans. •
Brand
•
Reason
Q14. Recommendation for company to more sales: Ans.
103
