Project Report on comparitive study on pepsi and coca cola

Project Report On Pepsi V/S Coca-cola...

A COMPARATIVE COMPARATIVE STUDY ON PEPSICO PEPSICO AND AND COCACOLA… COCACOLA …

PROJECT REPORT ON:


“A COMP COMPARAT RATIVE STUDY STUDY O PEPSI PE PSI AD COC A-CO! A- CO! A" MASTER O# COMME RCE $PART %& SEMISTER I $'(%)-'(%*& SU+MITTED TO, UIVERSITY O# MUM+AI #OR TE POST DEREE I M.COM

SU+MITTED +Y MR.PRIYES  C. YE!AVE YE!AVE RO!! O.0 M.COM $PART $PART %& UDER TE UIDACE O#, PRO#. PRA1AS MU!CADAI

SMT. CADI+AI IMATMA! MASU1AI CO!!EE U!ASAAR-2'%((

Department of Commerce


“A COMP COMPARAT RATIVE STUDY STUDY O PEPSI PE PSI AD COC A-CO! A- CO! A" MASTER O# COMME RCE $PART %& SEMISTER I $'(%)-'(%*& SU+MITTED TO, UIVERSITY O# MUM+AI #OR TE POST DEREE I M.COM

SU+MITTED +Y MR.PRIYES  C. YE!AVE YE!AVE RO!! O.0 M.COM $PART $PART %& UDER TE UIDACE O#, PRO#. PRA1AS MU!CADAI

SMT. CADI+AI IMATMA! MASU1AI CO!!EE U!ASAAR-2'%((

Department of Commerce


Certifcate This is to certify that, MR. PRIYESH YELAVE of M.Com.-I, Sem.-I (Roll No. 38), has successfully completed completed the project titled “ACOMPARATIVE STUDY O# PEPSICO AD COCA-CO!A COCA-CO!A” under under my guidance guidance for the Aca3e4ic Year Aca3e4ic Year 2015-16. The information submitted is true and original as per my knowledge.

Prof. Prakash N. Mulchandani (Project Guide)

Prof. Prof. Gopi Gopi Shamna Shamnani ni (Coordinator, M. Com Course)

Dr. Padma Padma V. Deshmuk Deshmukh h ( I/C Principal)

External Examiner

DEC!ARATIO

Project Report On Pepsi V/S Coca-cola... I5 MR. PRIYES YE!AVE YE!AVE Student of Smt. Chandibai Himathmal Mansukhani College, centre for Business Management course of M.COM $Se4ister I& hereby declare that I have completed the project in academic year of !"#$!"% on

“A COMP COMPARAT RATIVE STUDY STUDY O CO SUM ER PERCE PE RCE PTIO PT IO  TO6ARDS PEPSI AD COCA-CO!A"

&he information provided is true and original to the best of my kno'ledge.

)*I+SH +-/ +-/ $M.COM RO!! O.0&

AC1O6!EDEMET

Many have contributed to the successful completion of this project, I 'ould like to place on record my grateful thanks to each of them, and report 'ould be incomplete 'ithout giving due credit to them. I feel e(tremely e(hilarated to have completed this project under the able and inspiring guidance of PRO#. PRA1AS MU!CADAI. His guidance and timely encouragement has infused courage in me to complete the 'ork successfully.


In the end I sincerely thank all the respondent, friends and all others 'ho helped me in completion of this project.

E7ECUTIVE SUMMARY

Market provides a key to gain actual success only to those brands 'hich match best to the current environment i.e.0 imperative0 'hich can be delivered 'hat are the people needs and they are ready to buy at the right time 'ithout any delay. It is perfectly true but this also depends on availability of good 1uality products and e(cellent taste and services 'hich further attract and add a golden opportunity for huge sales. &his also depends on the good planning approach and provide ample opportunity plus sufficient amount of products for sales in the coming ne(t financial year.


&his survey report introduces comparative study of consumer2s preferences for C3C$C3- and ))SI. fter going through a detail analysis of market behavior and future prospect, it may also provide an opportunity to C3C$C3- and ))SI to frame a good future plan to satisfy ma(imum needs of the customers and established its guiding role in the market of &*ICI&+ in particular and throughout the country as a 'hole. &he study report 'ill also provide an opportunity to delineate its market potential business areas, products 4 services are to be offered by the company to the customers. &his study report also provides the various factors affecting the services. Marketing 5ivision of C3C$C3- and ))SI has to keep in mind various factors specially 'hile preparing a plan for marketing its product or services. 5etail description along 'ith analysis of surveyed data is being presented in this report

IDE7

SR.O.

% %.% '

PARTICU!ARS

PAE O.

ITRODUCTIO

0

ISTORY O# PEPSI AD COCA-CO!A

%%

MISSIO AD VISIO

%

Project Report On Pepsi V/S Coca-cola... 

EED #OR TE STUDY

%*

2

O+:ECTIVE O# TE STUDY

%8

)

PEPSI AD CO1E MAR1ETI STRATEIES

%0

).%

CAI O# !OOS AD S!OAS DESI O# PEPSI AD COCA-CO!A

'

).'

COMPARISO O# S!OAS +ET6EE PEPSI AD COCACO!A

')

ADVERTISI STRATEY O# PEPSI AD COCA-CO!A

'*

*

COTROVERSY O PRESECE O# PESTICIDES

'0

8

TOP +RADS O# PEPSI AD COCA-CO!A

'9

0

MAR1ET AA!YSIS

'

9

CASE STUDIES

*

%(

#IDI AD SUESIOS

2'

%%

COC!USIO

2*

%'

+I+!IORAPY

28

).


ITRODUCTIO

India is the 'orld6s fastest gro'ing major economy and has already made it to the list of "! biggest economies of the 'orld. ccording to the International Monetary 7und 8IM79, India is the ninth largest economy 'ith a nominal :5) estimated at around ;S< .!= trillion. >ith ;S< ?.@% trillion ))) in terms of the )urchasing )o'er )arity 8)))9,


India is the third largest economy 'ith ;S< ?.@% trillion, and that is 'hat makes it one of the biggest markets in the 'orld. India is a major manufacturer and importer of soft drink beverages. &he Indian soft drink industry is vast and is has been rapidly gro'ing by the day. Ao matter 'hat time of the year it is, soft drink beverages are consumed in great volume. ccording to official reports, the volume of soft drinks consumed in India stood at a 'hopping "",?## million litres in !". &hese numbers suggest that there 'as an increase of about "?! percent in the consumption of soft drinks in comparison to !!. It is further e(pected that the sale of soft drinks may go up by an annual "@ percent till until !". &he beverage industry in India constitutes of around ;S5 ! million among the ;S5 %# billion food processing industry. &he major sectors in beverage industry in India are tea and coffee 'hich are not only sold heavily in the domestic market but are also e(ported to a range of leading overseas markets. Half of the tea and coffee products are available in unpacked or loose form. mong the hot beverages manufactured in India, tea is the most dominant beverage that is ruling both the domestic and international market even today. &he supply of tea and coffee is insurmountable in the Indian beverage industry. &he taste factor in tea varies according to the taste of individuals in different countries and the beverage companies in India manufacture the products in accordance 'ith the taste of the individuals. 7or e(ample, the inhabitants in the southern parts of India prefer dust tea 'hereas the inhabitants in the 'estern part of India prefer loose tea. &he Southern India also prefers coffee a lot. &he production capacity of the total packaged coffee market is "@,%!! tonnes 'hich is appro(imately a ;S5 ? million market. &he soft drink market such as carbonated beverages and juices constitutes around ;S5 " billion producing = million crates per year. In the peak season, the consumption capacity reaches # million creates per month and during off season the same goes do'n to "# million crates in a month. )epsi and Coca cola are the t'o leading brands in the Indian market. &he mineral 'ater market in India is a ;S5 #! million industry and produces %# million crates. round =.@ million crates is usually consumed each month but it rises to #. million crates in the peak season.

ABOUT BEVERAGE COMPANIES IN INDIA 7ruit juices, pulp and concentrates, and sauces or ketchups are doing very 'ell in the beverage market in India for the past fe' years. /arious milk products, health beverages, beer, and country li1uors have also been contributing largely in the rising demand of beverages in India. &he leading beverage companies in India are also e(porting various products especially tea and coffee to the international markets every year. &ea and coffee have registered an e(cellent gro'th in the Indian beverage market as these are the most preferred drinks purchased e(cessively


around the 'orld. mong all the leading beverage companies in India, Coca cola has accounted for a thriving gro'th since its inception. It occupies around %! percent of the carbonated drink sector in the Indian beverage industry. nother predominant brand in beverages is Aestle India -imited 'hich occupies %".# percent of the total Aestle S.. S'itDerland. &he Aestle products are hugely e(ported to *ussia apart from selling in the domestic market. $ See more atE httpEFFbusiness.mapsofindia.comFfood$industryFbeverageFGsthash.gea1gasv.dpuf

ISTORY O# PEPSI

)epsi 'as founded in Ae' +ork in "@%#. It is )roducing Aon$alcoholic beverage and 7ood processing items. )epsi is a carbonated beverage that is produced and manufactured by )epsiCo. It is sold in retail stores, restaurants cinemas and from vending machines. &he drink 'as first


made in the "@!s by pharmacist Caleb Bradham in Ae' Bern, Aorth Carolina. &he brand 'as trademarked on une "%, "@!. )epsi arrived on the market in India in "@. March , !"E )epsiCo announced t'o ne' appointments to its India *egion leadership teamE )raveen Somesh'ar, currently C3 India Beverages. )epsiCo gained entry to India in "@ by creating a joint venture 'ith the )unjab government$ o'ned )unjab gro Industrial Corporation 8)IC9 and /olta2s India -imited. &his joint venture marketed and sold -ehar )epsi until "@@", 'hen the use of foreign brands 'as allo'ed )epsiCo bought out its partners and ended the joint venture in "@@=. 3thers claim that firstly )epsi 'as banned from import in India, in "@?!, for having refused to release the list of its ingredients and in "@@, the ban 'as lifted, 'ith )epsi arriving on the market shortly after'ards. &hese controversies are a reminder of 0India2s sometimes acrimonious relationship 'ith huge multinational companies.0 Indeed, some argue that )epsiCo and &he Coca$Cola Company have 0been major targets in part because they are 'ell$kno'n foreign companies that dra' plenty of attention.0 )epsi is a hundred$year$old brand loved by over !! million people 'orld'ide. )epsi is ubi1uitous on just about every social occasion. +oungistaan loves it. !! million people 'orld'ide love it. But 'hat has made )epsi the single largest selling soft drink brand in India is actually a formula concocted a century ago in a fara'ay continent

ISTORY O# COCA-CO!A

Coca$Cola history began in "% 'hen the curiosity of an tlanta pharmacist, 5r. ohn S. )emberton, led him to create a distinctive tasting soft drink that could be sold at soda fountains. He created a flavored syrup, took it to his neighborhood pharmacy, 'here it 'as mi(ed 'ith carbonated 'ater and deemed Je(cellentK by those 'ho sampled it. 5r. )emberton2s partner and


bookkeeper, 7rank M. *obinson, is credited 'ith naming the beverage JCoca$ColaK as 'ell as designing the trademarked, distinct script, still used today. &he Coca$Cola formula and brand 'as bought in "@ by sa Candler 'ho incorporated &he Coca$Cola Company in "@. &he Coca$cola Company. Coca$Cola currently offers nearly =!! brands in over !! countries or territories and serves ".# billion servings each day. &he Coca$ Cola Company is head1uartered in tlanta, :eorgia. Its current president and C3 is Muhtar Lent. Coca$Cola, the corporate nourishing global community 'ith the 'orld2s largest selling soft drink concentrates since "%, returns to India in "@@ after a gap of "% years. >ith the ac1uisitions of major brands in India it 'ent on to be kno'n as &he Hindustan Coca$cola Beverages )vt -td. Mr. Lrishnakumar is Chief (ecutive 3fficer of Hindustan Coca$Cola Beverages )rivate -imited. Mr. *ohit :othi is (ecutive 5irector of Market 3perations and Mr. Sanjay Sharma is (ecutive 5irector of Supply Chain at present. Coca$cola have gained the international standard IS3 "=!!" nvironment Management System certificate. &he IS3 "=!!" certificate is the internationally recogniDed standard of nvironmental Management.


MISSION AND VISION

MISSIO AD VISIO O# PEPSICO

MSSIO,- s one of the largest food and beverage companies in the 'orld, their mission is to provide consumers around the 'orld 'ith delicious, affordable, convenient and complementary foods and beverages from 'holesome breakfasts to healthy and fun daytime snacks and beverages to evening treats. &hey are committed to investing in their people, their company and the communities 'here they operate to help position the company for long$term, sustainable gro'th.

Project Report On Pepsi V/S Coca-cola... VISION:- t )epsiCo, they are committed to achieving business and financial success 'hile

leaving a positive imprint on society  delivering 'hat 'e call )erformance 'ith )urpose. In practice, )erformance 'ith )urpose means providing a 'ide range of foods and beverages from treats to healthy eats finding innovative 'ays to minimiDe their impact on the environment and reduce their operating costs providing a safe and inclusive 'orkplace for their employees globally and respecting, supporting and investing in the local communities 'here they operate. >herever they do business, )erformance 'ith )urpose is their guide. &hey believe that delivering for their consumers and customers, protecting the environment, sourcing 'ith integrity and investing in their employees are not simply good things to do, but that these actions fuel their returns and position )epsiCo for long$term, sustainable gro'th.

UIDI PRICP!ES,

Care ;or torl3 t


Sell onl? pro3=cts t


SpeaB >it< tr=t< an3 can3or.



6in >it< 3i@ersit? an3 incl=sion.



+alance s
MISSIO AD VISIO O# COCA-CO!A

MISSIO,- Coca$Cola2s *oadmap starts 'ith their mission, 'hich is enduring. It declares their purpose as a company and serves as the standard against 'hich they 'eigh their actions and decisions.

&o refresh the 'orld...


&o inspire moments of optimism and happinessN &o create value and make a difference.

VISSIO,- Coca$Cola2s vision serves as the frame'ork for their *oadmap and guides every aspect of their business by describing 'hat they need to accomplish in order to continue achieving sustainable, 1uality gro'th. 

People,- Be a great place to 'ork 'here people are inspired to be the best they can be.



Port;olio,- Bring to the 'orld a portfolio of 1uality beverage brands that anticipate and

satisfy people6s desires and needs. 

Partners,- Aurture a 'inning net'ork of customers and suppliers, together 'e create

mutual, enduring value. 

Planet,- Be a responsible citiDen that makes a difference by helping build and support

sustainable communities. 

Pro;it,- Ma(imiDe long$term return to shareo'ners 'hile being mindful of our overall

responsibilities. 

Pro3=cti@it?,- Be a highly effective, lean and fast$moving organiDation.

EED #OR TE STUDY

In the present scenario the competitions bet'een the soft drinks increased very high. &he companies are struggling a lot to keep up their market share in the industry and to improve the sales of their products i.e. the turnover of the company. 7or this the company has to kno' their position in the market and the opinion and the loyalty of the customers and the retailers 'hen compared to their competitor. Because of this reason the comparative analysis is very important and useful to the Company.


By the use of comparative analysis the companies can understand the position of the company and the strength of the company in the market. &hrough the comparative analysis 'e can understand that 'hat strategies the competitors are using for the increase their sales volume. 7rom the study 'e can gather the information regarding the opinion of the retailers on the companies comparatively and this 'ill help to plans for the future to increase the performance of the company and to gain the loyalty of the retailers 'hen compared to the competitors.

O+:ECTIVES O# TE STUDY



&o study the overvie' of )epsi and Coca$cola Company.



&o kno' and compare the merchandising of )epsi and Coke in retail outlets.



&o identify the retailers opinion to'ards )epsi products 'hen compared to coke products.

Project Report On Pepsi V/S Coca-cola... 

&o kno' various products introduced by )epsi and Coca$cola.



&o understand the marketing strategies adopted by )epsi and Coca$cola.



&o offer some finding and suggestions to the company for the improvement of its performance.


MARKETING STRATEGIES OF PEPSICO AND COCACOLA

MAR1ETI STRATEY O# PEPSI

a& POSITIOI,vailable in regular siDe. )ackaging attractiveness & PRODUCT STRATEY

Create more ne' flavors. l'ays focus on health  s'eet less, lo' carbon dio(ide gas. Leep design more on product packaging. 5o research on customer needs, 'ants, and demands


Moreover, )epsi can come out 'ith as many ne' innovative products as they can depend on countries2 cultures c& PRICI STRATEY

)rovides credit facility to the distributor 'hich helps them in proper running of their business )rovides more credit facility to the ne' and old 'holesalers in order to e(pand )epsi2s brand to rural area. Start to build more partners 'ith local brands to offer our )epsi products only. Start to do more sponsors 'ith government, A:3s, or other events )roduct price are fi(ed by ))SIC3. India according by Indian market. 3& DISTRI+UTIO STRATEY

&he distribution of )epsi channel such asE Supermarkets Convenience mart *estaurants 7ast food outlets 8L7CN9

e& PROMOTIO STRATEY

&his advertising is mostly creative and has different elements like music and sports )epsi.com also plays an important role in advertising and attracts target audience by giving access to options like do'nloads, gaming, and music etc.


MAR1ETI STRATEY O# COCA-CO!A a& PRODUCT,Coke 'as launched in India in gra, 3ctober =, in 6@6, soon after its traditional all Indian launch of its Cola. t the sparking ne' bottling plants at Hathra near gra. Coke 'as back 'ith a bang after its e(it in "@??. Coke 'as planning to launch in ne(t summer the orange drink, 7anta 'ith the clear lemon drink, sprite, follo'ing later in the year. Coke2s product line includes, Coca$ Cola, &humps ;p, 7anta, MaaDa, Sprite, Club Soda, ?$up,-imca,7anta apple, 5iet Coke.

PAC1AI


Coca$Cola India -imited 8CCI-9 has bottled its Cola drink in different siDes and different packaging i.e. !! ml bottle, !! ml. Bottle, ! ml. Cans, #!! ml. and bottles of " and  liter.

PRODUCT POSITIOI 3ne important thing must be noticed that &humps ;p is a strong brand in 'estern and southern India, 'hile Coca$cola is strong in Aorthern and astern India. >ith volumes of &humps up being lo' in the capital, there are likely chances of Coca$Cola slashing the prices of &humps ;p to *s. # and continue to sell Coca$cola at the same rate. nalysts feel that this strategy may help Coke since it has  Cola brands in comparison to )epsi 'hich has just one. &humps ;p accounts for =!O of Coca$cola Company2s turn over, follo'ed by Coca$Cola 'hich has a O share and -imca 'hich accounts for "?O of the turnover of the company. >e 'ill sell 'hatever consumers 'ant us to0. Coca$cola India has positioned &humps up as a beverage associated 'ith adventure because of its strong taste and also making it compete 'ith )epsi as even )epsi is associated 'ith adventure youth.

& PRICE,-

&he price being fi(ed 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. &he fi(ed cost structure in Carbonated Soft 5rinks Industry, and competition make it very difficult to change or alter the prices. &he various costs incurred by the individual companies are almost unavoidable. &hese being the costs of concentrates, standard bottling operations, distributor and bottlers commissions, distribution e(penses and the promotional and advertising e(penditure 8s far as Coke is concerned, it had to incur a little more than )epsi as )epsi paved its 'ay to India in "@@ 'hile Coke made a comeback in "@@.9Currently a !! ml. Coke bottle is available for *s"! the ! can 'as initially available for *s. "# and no' *s.!. &he prices of #!!.

c& P!ACE,Coke may have gained an early advantage over )epsi since it took over )arle in "@@=. Hence, it had ready access to over , !!,!!! retailer outlets and %! bottlers. Coke 'as had a better distribution net'ork, o'ing to the 'ide net'ork of )arley drinks all over India. Coke has further e(panded its distribution net'ork. Coke and its product 'ere available in over , !!,!!! outlets 8in contrast 'ith )epsi6s , ?#,!!!9. Coke has a greater advantage in terms of geographical coverage. Coke and )epsi have devised strategies to get rid of middlemen in the distribution


net'ork. Ho'ever, #!O of the industry unfortunately depends on these middlemen. s of no', around "!! agents are present in 5elhi. Bottlers of the multinationals have strongly felt the need to remove these middlemen from the distribution system, but very little success has been achieved in doing so. 3& PROMOTIO

It must be remembered that soft drinks purchases are an 0impulse buy lo' involvement products0 'hich makes promotion and advertising an important marketing tool. &he  arch rivals have spent a lot on advertising and on promotional activities. ccording to )aul Stobart, dvertising encourages customers to recogniDe the 1uality the company offers. )rice promotions often produce short$term sales increases. Coca$cola has entered ne' markets and also developing market economics 8like India9 'ith much$needed jobs


CAI O# !OOS DESI OVER PERIOD O# TIME


7rom the above picture 'e can observe that from origin itself )epsi Company and Coca$cola both have been changing their -ogos. 7rom this 'e can understand that both Companies have been trying to create some place in a differently 'ith its ne' -ogos. )reviously the name of )epsi is )epsi$Cola, and no' it is changed to )epsi. &he reason for changing the -ogos of )epsi continuously 'as it merged many of the largest 7ood Companies 'ith )epsi like &ropicana, 7ritos -ay and :ala(y Co. and etc. every time 'hen merged 'ith any Company it changed its -ogos, because of this reason )epsi became the largest food based products producer in the 'orld. Coke Company is confined to the soft drink production only. Coke Company has the t'o cola brands, 'hereas )epsi has only one brand of cola. )epsi Company is using e(cellent marketing strategies, such as celebrity appearances to sell their products 'here as Coke2s realistic approach has placed them at the top of the soft drink industry, mainly in the case of cola sales. >e can observe the cola 'ar through the dvertising of the t'o companies in the television. &hey prepare the ds to compete 'ith one another. &hey 'ill hire the famous persons and the celebrities for their ds. &hey 'ill invest lots of amount on advertising. &hrough the advertising only the sales of the soft drinks are in creased. ven though )epsi trying to get the Ao$" place in the soft drinks industry the statistics have sho'n that they are not able to get that position 'hen compared to Coke Company for the past fe' years. In case of dvertising )epsi dominated Coke because most of the customers are attracted to'ard the )epsi Company2s ds only not to the Coke Company2s ds because )epsi is spending more on advertising preparation 'hen compared to Coke Company.


COMPARISO O# S!OAS +ET6EE PEPSI AD COCA-CO!A

PEPSI S!OAS,-

%99(%99%, Ye
COCA-CO!A S!OAS,%99), Al>a?s tF '(%, +e>aja< 1<=s

ADVERTISI STRATEIES O# PEPSI AD COCA-CO!A

IMAE EVA!UTIO STRATEY, closer look at the brand identities of each of the brands helps assess ho' successful their advertising campaigns have been in creating a brand image in tune 'ith it, 'hile being sensitive to the value system of the target audience.

PEPSICOHS CAMPAI,&he analysis of )epsi, ? ;) and Mountain 5e' from the portfolio of )epsiCo puts forth some interesting aspects about the evolution of these brands. )epsi 'as one of the first products to Indian markets after the economic reforms of "@@". I.

PEPSI,-)epsi began 'ith the Yehi hai Right Choice Baby campaign, 'hich has been one of the most memorable campaigns of the brand, featuring celebrity endorsers such as Shah *ukh Lhan among others. &he focus, as is clearly evident, is on the product 'ith the youth as its target segment. Yeh Dil Mange More and Yeh Pyaas Hai Badi 'ere some of the later campaigns. Yeh Dil Mange More campaign 'as again a great success, having balanced the emotional as 'ell as the functional appeal of the product. 7eaturing Sachin &endulkar and many other leading stars at that point of time, this 'as also one of the longest campaigns carried out by )epsi. &he company ho'ever failed to maintain the trend and leverage it. Instead of moving on to a complete emotional appeal platform, the company decided on a product based promotion campaign. &hough there is still some amount of emotional appeal to its campaigns, the principal focus is on the product $ it being a preferred thirst 1uencher.

II.

8 UP,- In its early days, ? ;) inherited the global 7ido$5ido campaign for promotion in India as 'ell. Ho'ever, 'ith changing times and a conte(tual difference in India, a much more focused campaign 'as re1uired. &his led to the Keep It Cool campaign, 'hich 'as targeted primarily at the youth and the teenager segment. Hence the appeal 'as at a more subtle, emotional level, 'hich 'as meant to convey a potential lifestyle statement. &he recent campaign of Bheja Fry essentially leverages on the same emotional appeal 'here the Keep It Cool campaign has been some'hat t'eaked to have a local appeal.

III.

MOUTAI DE6,- Mountain 5e' is the latest entrant in the product portfolio. &his product too has the appeal of being the drink of a daredevil or the Ao 7ear personality. &he campaigns launched include Do the Dew and Dar Ke Aagey eet Hai. &he initial campaign 'as unclear in terms of its appeal and the target segment, as a result of 'hich the brand suffered some jolts in the beginning. Ho'ever, the latest campaign captures the


Ao 7ear or the Macho Man image. In this sense, the brand directly competes 'ith &hums ;p from the Coca Cola Stable.

COCA-CO!AH CAMPAI, o Chaaho Ho aaye, Coca Cola njoy 'as one of the company2s first campaigns in India. It 'as remarkably 'ell e(ecuted, and appealed both at a product level as 'ell as at an emotional level. &hese ads featured celebrities such as Hrithik *oshan and ish'arya *ai. &he target segment for Coca Cola in its initial days 'as the youth segment and this campaign clearly connected 'ell 'ith the segment. Ho'ever, the ne(t advertising campaign of !handa Matlab Coca Cola 'as launched 'ith an objective to have a mass appeal. &he campaign leveraged the product platform rather than the emotional platform that it had established earlier.

It is ho'ever, important to note here that Coca Cola made some e(ceptions for India. &he company has similar marketing strategies across geographies and usually doesn2t depend on celebrity endorsements. But given the great fan$follo'ing, and in adapting to the Indian conte(t, the company had to initially deviate from its set charter. Ho'ever 'ith the current campaign of "pen Happiness, Coca Cola seems to have achieved both an emotional as 'ell as a mass appeal. &here is a very natural connect 'ith the target segment, that of celebrating every day, and sharing small moments of joy 'ith our loved ones, irrespective of any barriers. I.

TUMS UP,- &hums ;p is a brand of cola in India. &he logo is a red thumbs up. It 'as introduced in "@?? to offset the 'ithdra'al of &he Coca$Cola Company from India. &he brand 'as later bought by Coca$Cola 'ho re$launched it in order to compete against )epsi. s of 7ebruary !", &hums ;p is the leader in the cola segment in India, commanding appro(imately =O market share and an overall "#O market share in the Indian aerated 'aters market.

II.

SPRITE,- Sprite $ the other brand from the Coca Cola stable  began its journey 'ith the campaign titled All !aste #o $yaan. &his appealed greatly to the youth 'ho don2t like to be preached and relish their sense of o'nership and decision making. Sprite has never depended on celebrity endorsements as a 'ay to gain brand recognition or consumer recall. &he ads are designed to be very 'itty, and generally connect very 'ell 'ith the target audience by capturing every day moments.%eedhi Baat #o Ba&waas $ its ne(t campaign  instantly connected 'ith the target audience by coming across as a brand that 'as different from the other, one that focused on the individuality of the consumer. &he emotional appeal is much stronger and sho's a clear sign of maturity of the campaign.


COTROVERSY O PRESECE O# PESTICIDES

In !! and again in !!%, the Centre for Science and nvironment 8CS9, a non$governmental organiDation in Ae' 5elhi, claimed that soda drinks produced by manufacturers in India, including both )epsi and Coca$Cola, had dangerously high levels of pesticides in their drinks. Both )epsiCo and &he Coca$Cola Company maintain that their drinks are safe for consumption and have published ne'spaper advertisements that say pesticide levels in their products are less than those in other foods such as tea, fruit and dairy products.

TOP +RADS O# PEPSI


7rom the above image 'e find that )epsi is not competing 'ith its single brand that is cola brand but also 'ith different brands such as -ays, &ropicana, 5oritos, Cheetos, Mountain 5e', 5iet )epsi, )epsi Ma(, 1uafina, :atorade, ? up and many more sho'n in the above picture. s )epsiCo began to e(tend its operations beyond soft drinks and snack foods into other lines of foods and beverages. )epsiCo purchased the orange juice company &ropicana )roducts in "@@, and merged 'ith Puaker 3ats Company in !!", adding 'ith it the :atorade sports drink line and other Puaker 3ats brands such as Che'y :ranola Bars and unt emima, among others. In ugust !!@, )epsiCo made a
TOP +RADS O# COCA-CO!A


s usual Coca$Cola is also for'ard in o'ing brands. Coca$Cola has follo'ing brands 'orld'ideE$ )o'erade Qero, 3d'alla, Aos, Honest &ea, Burn, 7uDe &ea, 7uDe, Mello +ello, 5el >alle, Minute Maid, Coca$Cola 5iet and many more. Sprite 'ere introduced in "@%", Sprite is the 'orld6s leading lemon$lime flavored soft drink. Sprite is sold in more than "@! countries and ranks as the Ao.  soft drink 'orld'ide. 7anta 'ere Introduced in "@=!, 7anta is the second oldest brand of &he Coca$Cola Company and our second largest brand outside the ;S. 7anta 3range is the leading flavor but almost every fruit gro'n is available as a 7anta flavor some'here. Consumed more than "! million times every day around the 'orld, consumers love 7anta for its great, fruity taste. 5iet Coke, also kno'n as Coca$Cola light in some markets, is a sugar$ and calorie$free soft drink. It 'as first introduced in the ;nited States on ugust @, "@, as the first ne' brand since "% to use the Coca$Cola &rademark. &oday, 5iet CokeFCoca$Cola light is one of the largest and most successful brands of &he Coca$Cola Company, available in more than "#! markets around the 'orld.


Minute Maid has been making juice for more than %! years and has a heritage of nutrition, innovation, and 1uality. In "@=#, the ;.S. rmy ordered #!!,!!! pounds of po'dered orange juice from the 7lorida 7oods Corporation, 'hich later renames itself to /acuum 7oods and then finally the Minute Maid Corporation. &he Minute Maid Corporation 'as ac1uired by &he Coca$ Cola Company in "@%!, marking its first venture outside of soft drinks. nother product from Coca$Cola is )o'erade Qero. It electrolytes 'ithout the calories. )3>*5 Q*3R is a great$tasting electrolyte$enhanced sports and fitness drink. It combines electrolytes 'ith fluids for hydration. It 1uenches thirst and replenishes minerals lost during sports or other intense activities.

MAR1ET AA!YSIS


s 'e can see above pie diagram it is easily understand that Coca$Cola is on the dominant position 'ith having #"O share in !"".)epsico seems second largest insoft drink market at global level 'ith having O share. It can be observed that Coca$Cola and )epsiCo are the top  brands that are ruling the global market of soft drink beverages. &he Coca$Cola Company has historically been considered )epsiCo6s primary competitor in the beverage market, and in 5ecember !!#, )epsiCo surpassed &he Coca$Cola Company in market value for the first time in "" years since both companies began to compete. In !!@, &he Coca$Cola Company held a higher market share in carbonated soft drink sales 'ithin the ;.S. In the same year, )epsiCo maintained a higher share of the ;.S. refreshment beverage market, ho'ever, reflecting the differences in product lines bet'een the t'o companies. s a result of mergers, ac1uisitions and partnerships pursued by )epsiCo in the "@@!s and !!!s, its business has shifted to include a broader product base, including foods, snacks and beverages. &he majority of )epsiCo6s revenues no longer come from the production and sale of carbonated soft drinks. Beverages accounted for less than #! percent of its total revenue in !!@. In the same year, slightly more than %! percent of )epsiCo6s beverage sales came from its primary non$ carbonated brands, namely :atorade and &ropicana.


ccording to Industry *eport conducted in India, Many analysts say that despite its head start in the market, )epsiCo has failed to overtake Coca$Cola, 'hich strategically ac1uired local brands &hums ;p and -imca in "@@ from )arle )roducts. Its recently launched cola tom is seen by critics as a 0me$too0 product that seeks to rival &hums ;p.  Coca$Cola spokesperson saysE 0Sparkling beverage volume gro'th in the 1uarter 'as led by brand Coca$Cola at ! per cent, and driven by strong integrated marketing campaigns and continued e(pansion of packaging choices to consumers.0 SL dvisor lagh saysE 0&he current 'inner in the cola battle is Coke, but the 'inner of the 'ar is yet to play out.

SA!ES REVEUE O# PEPSICO AD COCA CO!A

SA!ES REVERUE O# PEPSICO


7iscal year is anuary$ 5ecember. ll values ;S5 millions. SalesF*evenue

'(%(

'(%%

'(%'

'(%

'(%2

#?.=B

%%.#B

%#.=@B

%%.=B

%%.% B

$

"=.@O

$".#O

".="O

!.=!O

Sales :ro'th

SA!ES REVERUE O# COCA CO!A CO.

7iscal year is anuary$ 5ecember. ll values ;S5 millions. SalesF*evenue

'(%(

'(%%

#."=B

=%.??B

'(%'

=.!?B

'(%

=%.?B

=#.@ B

$.#O

$ ".%=O

Sales :ro'th $

."!O

.?O

'(%2

S3;*CE$ M*L&>&CH.C3M s you see the above table of 'hole )epsiCo and Coca$Cola co. it thro's light on 'ho is more efficient and better although coca$cola is better in soft drink beverages. &he above table clearly sho's the sales revenue of both the company, )epsiCo products has lot of demand as its sales revenue in !"! 'as #?.= billion dollar increased to %%.% billion dollar in !"=.


CASE STUDY O# PEPSI

+acBro=n3, )epsi has been a 'inner 'hen it comes to advertising. It talks to the youth and taps the pulse of the generation. >hether it 'as +ehi hai right choice baby2, Change the game or 3h yes abhi2,


)epsi has al'ays connected 'ith the current trends. But )epsi never tried to promote any social changes or dig deep into the subjective alteration of contemporary urban societies but al'ays focused on t'o most important parameters they chose the right celebrities and 'rote the perfect taglinesT So, as )epsi 'as losing to other beverages in the market, it changed its philosophy of designing a campaign 'ithout compromising on the ad attributes. &he 3h yes abhi2 campaign 'as meant to target the youth  kno'n for its impatience but 'ith a positive attitude. &hey made impatience a virtueT

Chile &hums ;p2s 'orld 'as of hyper$masculinity 8body9, Coca Cola2s about happiness 8heart9, and Sprite2s 'as of mental smarts 8mind9, )epsi decided to o'n the bold irreverent Spirit of youth2 by making impatience a virtueT

Strate?, )epsi carried out a series of research throughout !" to understand the pulse of the +outh that sho'edE a. &he young believe that the present is e(citing and acting Ao'2 leads to a better Ae(t2 b. &oday, a surfeit of opportunity to e(perience life has created an increased 7ear of Missing 3ut2 thereby fuelling the need to Make the Most of Ao'2.


Ao', Brand )epsi had to make the most of this phenomenon. In India, )epsi has been its best 'henever the brand challenged an e(isting order or an e(isting convention, 'henever the brand gave a license to the youth  gave them a mantra to live by. So, 'hile the youth are impatient to make the most of no'2 and the adults fro'n at their restlessness2, )epsi sided 'ith the youngsters and chose to stoke this can2t 'ait attitude2T

Eec=tion, Creating a Ae' +outh nthem )epsi created an nthem2 for a &/ Commercial J3H +S BHIK that aired across multiple youth and general entertainment channels. &he &/C used celebrities like *anbir Lapoor, )riyanka Chopra, M.S. 5honi as 'ell as regular youngsters to sho' ho' one2s impatience to act no' and follo'ing one2s heart helps make the here and no'2 e(citing. Celebrities 'ere carefully chosen to be the ones 'ho had achieved a lot early in their respective careers and 'ith their bold, dynamic all$ne' look. A3>2 'as daDDlingly captured. )epsi 'anted to evoke urgency for A3>2 through digital  'here the target audience resides. >ith a series of contests and conversations, it encouraged people to act Ao'2T ". GCA&>I&BHIE It asked people to sho' their impatient side by telling 'hat 'as that they can2t 'ait to do using GCant>aitbhi on &'itter. ll impatient 'ishes 'ere curated in a virtual )epsi bottle on our microsite. )epsi made the most impatient users2 'ishes come true. . ))SI M;SIC BHIE India2s first on$demand online concert engaged music lovers across the nation . ))SI SH3& %!E Make the most of your impatienceT )epsi Shot %!, the shortest short$ film making competition, gave users = hours to shoot, edit and submit a %! second film.

Res=lt,


CASE STUDY O# COCA-CO!A


CASE, In "@!%, Harvey >ashington >iley passed the )ure 7ood and 5rug ct as the first commissioner of the 7ood and 5rug dministration 8759. &he 75 started prosecuting companies 'hich 'ere selling products 'ith harmful components and companies 'hich 'ere making misleading claims about their products. In "@!, Coca$Cola had already started using spent coca leaves 8'hich only carried trace amounts of cocaine9 and had dropped the claim that it cured headaches. But it still contained caffeine, and >iley believed that even small amounts of caffeine in beverages 'ere harmful to people, and he 'as 'orried that Coca$Cola 'as being consumed by children as young as = years old. So, in "@!@, he ordered the seiDure of =! barrels and ! kegs of a Coca$Cola shipment.

SO!UTIO, 0dulterated0E &he decision, delivered by ustice Hughes, states that the intent of the 'ord 0added0 in the conte(t of the ct did not e(clude the ingredients of a formula 0sold under some fanciful name 'hich 'ould be distinctive0 if any 'ere found deleterious and 'as included to protect natural foodstuffs from prosecution because of constituent poisons rendered inert in their natural state 8such as fusel oil in li1uor9 furthermore, it states that the introduction of caffeine in the later stages of syrup production made it an 0added ingredient0 in any sense of the term and the removal of harmful ingredients, even if vital to the identity of the product, did not constitute adulteration. 0Misbranded0E 3f the misbranding charge, the Court held neither had the government proved that 0coca cola0 'as a descriptive name nor had the Coca$Cola Company proved it 'as not, making both of these assertions irrelevant. &hus the Court found that the issue of 'hether the product contained any coca or cola had not been settled. 05etails0E &he case 'as returned to the lo'er court for retrial to determine the remaining, factual matters ustice Mc*eynolds abstained.

CASE, scola v. Coca$Cola Bottling Co., = Cal.d =#, "#! ).d =% 8"@==9, 'as a decision of the Supreme Court of California involving an injury caused by an e(ploding bottle of Coca$Cola. It 'as an important case in the development of the common la' of product liability in the ;nited States, not so much for the actual majority opinion, but for the concurring opinion of California Supreme Court justice *oger &raynor.

SO!UTIO,


Chief ustice )hil S. :ibson affirmed the judgment of the lo'er court. He held that even though the instrument causing the injury 'as not under the e(clusive control of the defendant at the time of the accident, the defendant did have control at the time the alleged negligent act took place 8in this case, the filling of the defective bottle9. ;pon an e(amination of the record, the evidence appears sufficient to support a reasonable inference that the bottle here involved 'as not damaged by any e(traneous force after delivery to the restaurant by defendant. It follo's, therefore, that the bottle 'as in some manner defective at the time defendant relin1uished control, because sound and properly prepared bottles of carbonated li1uids do not ordinarily e(plode 'hen carefully handled. 7urthermore, even though the defendant produced evidence to rebut the inference of negligence 'hich arises upon application of the doctrine of res ipsa lo1uitur by discussing its safety testing procedures, :ibson ruled that the 1uestion 'as properly submitted to the jury, and did not modify the jury6s verdict.

CASE, >ater use In March !!=, local officials in Lerala shut do'n a <"% million Coke bottling plant blamed for a drastic decline in both 1uantity and 1uality of 'ater available to local farmers and villagers. In pril !!#, the Lerala High Court rejected 'ater use claims, noting that 'ells there continued to dry up last summer, months after the local Coke plant stopped operating. 7urther, a scientific study re1uested by the court found that 'hile the plant had 0aggravated the 'ater scarcity situation,0 the 0most significant factor0 'as a lack of rainfall.

SO!UTIO, &he case has been appealed and a decision is pending.U"#V Coca$Cola has set up a page to rebut these charges at cokefacts.org that 'as once o'ned b y its detractors.U"%VUcitation neededV

CASE, nimal testing In !!?, the Coca$Cola Company announced it 'ould no longer conduct or directly fund laboratory e(periments on animals unless re1uired by la' to do so. &he company6s announcement came after )& criticiDed the company for funding invasive e(periments on animals including one study in 'hich e(perimenters cut into the face of chimpanDees to study the animals6 nerve impulses used in the perception of s'eet taste. Some e(perimenters have criticiDed )&6s campaign against Coca$Cola and other companies claiming that their 'ork 'ould be undermined if they lost corporate funding.


CASE, )esticide contamination In !!, the Centre for Science and nvironment 8CS9, a non$governmental organiDation in Ae' 5elhi, said aerated 'aters produced by soft drinks manufacturers in India, including multinational giants )epsiCo and Coca$Cola, contained to(ins including lindane, 55&, malathion and chlorpyrifos $ pesticides that can contribute to cancer and a breakdo'n of the immune system. &ested products included Coke, )epsi, and several other soft drinks 8?;p, Mirinda, 7anta, &hums ;p, -imca, Sprite9, many produced by &he Coca$Cola Company. CS found that the Indian produced )epsi6s soft drink products had % times the level of pesticide residues permitted under uropean ;nion regulations Coca$Cola6s ! times. CS said it had tested the same products in the ;S and found no such residues. Coca$Cola and )epsiCo angrily denied allegations that their products manufactured in India contained to(in levels far above the norms permitted in the developed 'orld. 5avid Co(, Coke6s Hong Long$based communications director for sia, accused Sunita Aarain, CS6s director, of 0brand jacking0 W using Coke6s brand name to dra' attention to her campaign against pesticides. Aarain defended CS6s actions by describing them as a natural follo'$up to a previous study it did on bottled 'ater. In !!=, an Indian parliamentary committee backed up CS6s findings, and a government$ appointed committee 'as tasked 'ith developing the 'orld6s first pesticide standards for soft drinks. Coke and )epsiCo oppose the move, arguing that lab tests aren6t reliable enough to detect minute traces of pesticides in comple( drinks like soda. &he Coca$Cola Company has responded that its plants filter 'ater to remove potential contaminants and that its products are tested for pesticides and must meet minimum health standards before they are distributed. Coca$Cola had registered an "" percent drop in sales after the pesticide allegations 'ere made in !!. s of !!#, Coke and )epsi together hold @#O market share of soft$drink sales in India. In !!%, the Indian state of Lerala banned the sale and production of Coca$Cola, along 'ith other soft drinks, due to concerns of high levels of pesticide residue 3n 7riday, September , !!%, the High Court in Lerala overturned the Lerala ban, ruling that only the federal government can ban food products.


#IDI J%. 6
%%  '( 2(

'%  2( 8

2( ao@e '

J'. Do ?o= taBe an? so;t 3rinB re=larl? or occasionall?K AS, a4e Respon3ent

Re=larl? *)

Occasionall? )

J. 6
Pepsi 2(

Coca Cola 2)

eit
J2. 6
Taste 2%

A3@ertise4ent 2

Easil? a@ailale (

+ran3 '(

Price )

J). 6
((4l *%

2((4l '

%')(4l %*

Orane %8

!e4on '(

J*. 6
Cola *

Project Report On Pepsi V/S Coca-cola... J8. I; cola >
Pepsi 2'

T<=4s Up 2)

Diet CoBe %

J0. I; orane >
Mirin3a ))

#anta 2)

J9. I; le4on >
De> '

!i4ca '

8 UP 2)

J%(. A3@ertise4ents o; >
CoBe

Pepsi

8 UP

Respon3ent

')

)

(

Sprit e '

#anta

T<=4s Up

0

(

J%%. I; ?o=r 3esire3 ran3 o; col3 3rinB is not a@ailale at partic=lar s
Respon3ent %0 2( ( %'


J%'. 6
Re=lar Coca-Cola ))

Re=lar Pepsi 2)

J%. 6
Re=lar Coca Cola )

Re=lar Pepsi 8

+ot< '0

Q14. !"c! of t!e mar#et"n$ campa"$n %o &o' prefer( ANS) a4e Respon3ent

Al>a?s Coca Cola (

Pepsi Celerit? ca4pain )'

DonHt 1no> %'


SUESIOS

Though the coke is enjoying about =.=% of the total market share and it is market leader in Indian beverage industry. While with the .?% market share Pepsi is on the second step. If we are analyzing properly then we find Pepsi is small product portfolio than coke which is responsible for its second position. Pepsi should increase its product portfolio to capture the !oke"s market share. !ompanies should focus on the taste of the product because ##% population is influenced by taste only. $oung generation is the potential consumer so companies should more focus on them. s we find that &' % population consumes (''ml cold drinks. Which comes in glass bottles these bottles are being retuned back for refilling to companies) Which is incurred again cost of re*transportation. If company start to supply ('' ml cold drinks in pet bottles +plastic bottles9 it 'ill be good for company because =!O of population is using only

!!ml.


COC!USIO

In my conclusion, I 'ould like to point out that )epsi and Coke have managed some e(tremely successful brands 'ith time focus 'ill be more and more on merging markets plus there 'ill be a lot of emphasis on healthier beverages and more innovative products. Stress 'ill also be laid on cleaner and more environment friendly practices employed by these companies. PepsiCo

". Continue 'ith their diversification strategy. . *educe system 'ide costs 'ith better integration. . (pand into ne' markets. =. Concentrate into high gro'th areas like nutrition supplants and healthy foods.

Coca Cola

". Continue to capitaliDe on their brand image by follo'ing the differentiation strategy. . Bring costs do'n by integration both vertical and horiDontal. . Leep hold of their first mover advantage

Project Report on comparitive study on pepsi and coca cola

Recommend Documents