sales mgmt final project
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A
GRAND PROJECT REPORT ON
An analytical study of the sales and distribution
function of two major FMCG distributors Coke India vs.
PepsiCo India
In the fulfillment For the Requirement of Two Year Full
time PGDM, IIPM
Project Guide Submitted By:-
Prof. Veena Nidhi Dixit (F-144)
Priya dixit
Ramit Sharma
Koganti venkata kranti kiran
Batch: 2010-2012
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IIPMSALES MANAGEMENT
PROJECT REPORT
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PREFACE
A comprehensive practical study of management is a supplement to the theoretical classroom
knowledge. It helps to understand the subject more precisely.
This report tries to outline idea of professional world and helps in understanding the
pragmatic aspect of management function. Own observation are significant towards the
contribution in learning the subject. The report is therefore as a design as a reference of
organisation function rather then copy down instrument.
The purpose of industrial training is to make management student familiar with day today
function of business. The present report is an effort in this direction.
My humble endeavour and motive in presenting the project report is to find out the
comparison of brands between Coca-Cola and Pepsi.
It is hoped that this project serve as a supportive documents to research worker as effort has
been tried to make this report and informative stimulating and self explanatory.
Place : NEW DELHI NIDHI DIXIT
PRIYA DIXIT
RAMIT
KOGANTI V
16 March, 2010
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ACKNOWLEDGEMENT
We think if any of us honestly reflects on who we are,
how we got here, what we think we might do well, and
so forth, we discover a debt to others that spans
written history. The work of some unknown person
makes our lives easier everyday. We believe it's
appropriate to acknowledge all of these unknown
persons; but it is also necessary to acknowledge those
people we know have directly shaped our lives and our
work.
Through this acknowledgement, we express our
sincere gratitude towards all those people who have
helped us in the preparation of this project, which has
been a good learning experience for us.
We would like to thank the distribution channel and
Logistics department of the both Giant Organisation
Coke and Pepsi. Both company has Provided us the
various touch points of the whole chain. We have
covered the whole chain of urban area.
Finally we express our sincere thanks to Prof. Veena
and who guided us throughout this project.
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EXECUTIVE SUMMARY
Coca-Cola and PepsiCo are the two major companies in the world for cola drinks
and have a huge world market share. These two companies have captured the
market of each and every country they get into and same I the case in India where
Coke has a market share of 57.8% while pepsi has a market share of 35.6% and are
continuously fighting for a larger market share and continuously attacking each other
either by Advertisements, brand ambassadors, products and marketing of their
brand.
All this is fine but the main core competency of such products is in the Distribution
Process and in the satisfaction of their Retailers thus a strong distribution process
and a strong satisfaction level means more number of retailers and more the
retailers means more the availability of the product and more the availability of the
product means more the market share and thus the curiosity to know who is the
better distributor and has a strong distribution led us to the project Ananalytical study of the sales and distribution function of
two major FMCG distributors Coke India vs. PepsiCo
India
We conducted a survey of mainly retailers and distributors along with other Pepsi
and Coke Stockers but the major stockers are the retailers of mainly 10
respondents(who have given us an idea of more than 100 retailer operations). Itwas a simple questionnaire and we asked questions on quality of bottles, margins
and other attributes.
We got the number of sellers by convenient sampling and analysis and secondary
data analysis and the results are given in the project below
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Table of Contents
2. PHILLIP KOTLER (2010): MARKETING MANAGEMENT, 13THEDITION PEARSON EDUCATION 102
0
12.1CONCLUSIONS 91
12.2 Recommendations to Coke 91
12.3 Recommendations to Pepsi 92
BIBLIOGRAPHY I
ANNEXTURE II
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CH 1:
RESEARCH METHODOLOGY
1. Research Methodology
Problem statement / Objective of the research
To Study the concept of distribution channel and logistics in the soft drink industry and to
study the flow of soft-drink bottles in the market and compare it with the main competitor
in the industry.
Major objectives
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To study the satisfaction level of retailers.
In depth study of the distribution channel of Pepsi and coke
Critically compare the Supply chain management of the both company.
Find out the limitation and strength of both companies.
Research design
The research design that will be use is descriptive research
Involves gathering data that describe events and then organizes, tabulates, depicts,
and describe the data
Uses description as a tool to organize data into patterns that emerge during analysis
Often uses visual aids such as graphs and charts to aid the reader.
Description research takes a what is approach
Refers to the nature of the research question
The design of the research
The way that data will be analyzed for the topic that will be researched
There are three methods of data collection under this method. They are:
Survey
Interviews
Observations
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Sampling plan
Target population: Retailers who stock coke and pepsi mainly panwalas
Sampling size: 10(Spoke to major distributors who in turn supplied to more
than 100 retailers ,hence we are taking the sample size as 100.)
Sampling technique: convenience sampling
Sample Frame: - All members in the retailing channel and who influence the
channel.
Sample Unit: - Any retailer and dealer who stock pepsi and coke.
Sampling Method :- Non probability convenience sampling
Data collection sources
Primary data
Primary data would be collected through the structured questionnaire consisting mainly
open ended questions
Secondary data
Secondary data would be collected from the internet, journals, and reference books.
Figure 1.1: Marketing Research
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Scope of the study
ANALYSIS OF DATA
All the open-ended questions will be analysed by adding up the responses against each
alternative and answers from the various respondents.
Transcripts will result in the finding to explore the changes that are likely to impact the
unique aspects of beverage industry, with present scenario in India and in world. Our
findings will show the current trends in beverage industry, various problems faced by the
industry according to various respondents.
Expected contribution of the study
The analysis made as a part of this study may contribute in a way analysis of strength and
weakness of the sector as whole may be taken into consideration and various firms together
may make efforts to overcome those limitations and as a result not only the beverage
manufacturing firms would be benefited but others who uses the services of these firms
would also be benefited.
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Beneficiaries of the study
The outcomes analysed from this study would be beneficial to various sections such as:
- Beverage industry
This study would definitely benefit the soft drink firms in a way that services
provided by various firms would be compared and also the five force model
analysis of this sector reveal the potential threats to the existing players.
- Corporate
The benefits to the corporate would be that they would be well versed with
detailed information about various services provided by different firms so that it
would easier for them to select a particular soft drink firm to assist them in
various logistic problems.
- Researchers
The major beneficiaries from the project would be the researchers themselves as
this study would enhance their knowledge about the topic. They get an insight of
the present scenario of this industry as this is the emerging industry in the
beverage sector of the economy. Detail knowledge of various services provided
by the soft drink firm will help researchers and others to pursue career in this
industry.
Problems In Marketing research
Non Response of the Retailer
Language problem And Understanding of the questionnaire of the retailer
Giving any answer without understanding the question or without thinking.
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STATISTICAL TOOLS
Representation of statistical data by diagram, graphs, charts, or pictures is more effective
then tabular representation being easily intelligible to layman. Indeed diagrams are most
essential whenever it is required to convey any statistical information to the generic public.
The more important types of diagram which is use in statistical work are:-
BAR DIAGRAM
Mode of diagrammatic representation of data is the bar diagram. In this method the bar of
equal width are taken for the different items of the series. The lengths of the bar represent
value of the variables concerned.
PI CHART
It is a circle whose area is divided proportionately among the components by straight lines
drawn from the centre to the circumference of the circle. When statistical data are given for
a number of categories and we are interested in the comparison of various categories or
between a part of the whole, such a diagram is very helpful in effectively displaying the data
and the type of sampling is convenient and judgment sampling.
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CH: 2
Objective of the Study
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2. Objective of the Study
Since last few years, soft drink market is India at the end of the 2000-2010 decade. So both
the soft drink majors viz. Coca Cola and Pepsi has been emphasizing of placing their brand
at as many outlets as possible so that could cope up with the competition spreading at a
growth rate of 8-10%, it has forecasted that it would become Rs.9000 Crore market in India.
The main object of this project is to comprehensively analyze the distribution of Coca-Cola
and its strength in market against its rival Pepsi and also to be aware like the shopkeeper
about the sale and display of the Cokes brand like Thumbs-up, Maaza viz a viz Tropicana
of Pepsi etc.
This was done in two ways:-
a) Comprehensive market analysis was done by visiting various shops throughout
Delhi.
b) To ask the distributors about the promotions and schemes given to them in order
to sell and promote their products.
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CH: 3
INTRODUCTION TO THE
PROJECT
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3. Introduction to the Project
There is a huge fight between the two soft drinks giant Coca-Cola (Coke) and PepsiCo
(Pepsi) to grab a large part of the Indian markets. The main reason, well the growing Indian
middle class and the huge disposable income they have and also the increasing
consumption of soft drinks by Indians.
Pepsi and Coke both have brands attacking each other if Coke introduces one brand then
Pepsi will bring another brand to fight it and vice a versa. Though Coke is this huge giant
and Pepsi might be just a fly in front of it but the fly troubles and is much capable of fighting
back and also winning.
The main area where they can capture each others market is in the network of distribution
channels they use with restaurant chains, pan walas, hotels and eateries to compete with
each other. It is to these sellers where these two giants are vying for in order to capture a
larger market share and trounce the other and that is why the project on the satisfaction of
these members to see who is winning the competition.
According to industry experts, the market for carbonated drinks in India is worth US$ 1.5
billion while the juice and juice-based drinks market accounts for US$ 0.25 billion. Growing
at a rate of 25 per cent, the fruit-drinks category is one of the fastest growing in the
beverages market. Sports and energy drinks, which currently have a low penetration in the
Indian market, have sufficient potential to grow.
The market for alcoholic beverages has been growing consistently. 'The Future of Wine', a
report on the state of the wine industry over 50 years, suggests that the market for wine in
India was growing at over 25 per cent per year.
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Major investments
Private investment has been one of the key drivers for growth of the Indian food industry.
The 'India Food Report 2008', reveals that the total amount of investments in the food
processing sector in the pipeline for the next three years is about US$ 23 billion.
The government has received around 40 expressions of interest (EoI) for the setting
up of 10 MFPs with an investment of US$ 514.37 million.
Reliance Industries Ltd has invested US$ 1.25 billion in a dairy project.
Focusing on India as a rapidly growing market, US soft drinks giant PepsiCo would
pump in an estimated US$ 152.30 million to set up four new food and beverages
projects by 2012.
Geneva-based food service chain Global Franchise Architects (GFA) aims to open
250 stores around the world by March 2010, of which 100 will be in India.
Today India is one of the most potential markets with the population of around 1000 million
people. There is a growth of 30% in the soft drink industry. These factors are the reason for
the entry of two giants in the soft drink industry in the world to enter in the Indian market.
The cola giants coke and Pepsi, together control almost 96% of entire Indian market while
other companies has only share 4%.
In a long span, a culture transforms itself over and over. The map is remade attitude changefor better or worse. Processes are invented, hailed as revolutionary and discarded obsolete.
So it was one hundred year was a very much different world from what we have today, but
at least one sense, not very different at call. Many reasons have been advanced to explain
the last century. With over 100 yrs. Of interrupted growth despite war, economic depression
and other disturbances there be something that sets soft drink apart from the consumer
culture.
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CH: 4
INTRODUCTIONS TO THE SOFT
DRINKS MARKET
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4. Introduction to the Soft Drinks Market
The main production of soft drink was stored in 1830s & since then from those experimental
beginning there was an evolution until in 1781, when the worlds first cola flavoured
beverage was introduced. These drinks were called soft drinks, only to separate them from
hard alcoholic drinks. This drinks do not contains alcohol & broadly specifying this
beverages, includes a variety of regulated carbonated soft drinks, diet & caffeine free drinks,
bottled water juices, juice drinks, sport drinks & even ready to drink tea/coffee packs. So we
can say that soft drinks mean carbonated drinks. Today, soft drink is more favourite
refreshment drink than tea, coffee, juice etc. It is said that where there is a consumer, there
is a producer & this result into completion. Bigger the player, the harder it plays. In such
situation broad identity is very strong. It takes long time to make broad famous. Coca
Cola has its beginning in 1981 & since then has been one of the three most dominate
players in this soft drink industry.
The name soft drink was given by Americans as against hard drink, which is mainly
alcoholic. So in general terms non-alcoholic drinks are considers as soft drink. Soft drink
consists of flavour base, sweetener and carbonated water.
The major participants involved in the production and distribution of soft drink are
concentrate and syrup producers bottlers and retail channel concentrate-producers
manufactures basis of soft drink flavour and send them to bottlers. Bottlers purchase the
concentrate and add carbonated water and sometime sweeter and bottle or can the soft
drink. This soft drink delivered to the customer accounts retail channels that sales or serve
the product directly to the customers.
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In USA soft drink had existed since the early 1800s where many US druggists had
concentrate blend of fruit syrups and carbonated soda water that they sold them at their
soda fountains.
4.1 History of Soft Drinks
1798 The term "soda water" first coined.
1810 First U.S. patent issued for the manufacture of imitation mineral waters.
1819 The"soda fountain" patented by Samuel Fahnestock.
1835 The first bottled soda water in the U.S.
1850 A manual hand & foot operated filling & corking device, first used for bottling soda
water.
1851 Ginger ale created in Ireland.
1861 The term "pop" first coined.
1874 The first ice-cream soda sold.
1876 Root beer mass produced for public sale.
1881 The first cola-flavored beverage introduced.
1885 Charles Aderton invented "Dr Pepper" in Waco, Texas.
1886 Dr. John S. Pemberton invented "Coca-Cola" in Atlanta, Georgia.
1892 William Painter invented the crown bottle cap.
1898 "Pepsi-Cola" is invented by Caleb Bradham.
1899 The first patent issued for a glass blowing machine, used to produce glass bottles.
1913 Gas motored trucks replaced horse drawn carriages as delivery vehicles.
1919 The American Bottlers of Carbonated Beverages formed.
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1920 The U.S. Census reported that more than 5,000 bottlers now exist. Early 1920's the
first automatic vending machines dispensed sodas into cups.
1923 Six-pack soft drink cartons called "Hom-Paks" created.
1929 The Howdy Company debuted with its new drink "Bib-Label Lithiated Lemon-Lime
Sodas" later called "7 up" Invented by Charles Leiper Grigg.
1934 Applied colour labels first used on soft drink bottles, the colouring was baked on the
face of the bottle.
1952 The first diet soft drink sold called the "No-Cal Beverage" a ginger ale sold by Kirsch.
1955 Coke enters for the first time into Indian markets
1957 The first aluminium cans used.
1959 The first diet cola sold.
1962 The pull-ring tab first marketed by the Pittsburgh Brewing Company of Pittsburgh, PA.
The pull-ring tab was invented by Alcoa.
1963 The Schlitz Brewing Company introduced the "Pop Top" beer can to the nation in
March, invented by Ermal Fraze of Kettering, Ohio.
1965 Soft drinks in cans dispensed from vending machines.
1965 The reseal able top invented.
1966 The American Bottlers of Carbonated Beverages renamed The National Soft Drink
Association.
1970 Plastic bottles are used for soft drinks.
1973 The PET (Polyethylene Terephthalate) bottle created.
1974 The stay-on tab invented Introduced by the Falls City Brewing Company of Louisville,
KY.
1977 Coke leaves India in order to protect its secret about the ingredients used in its
soft drink
1979 Mello Yellow soft drink is introduced by the Coca Cola Company as competitionagainst Mountain Dew.
1981 The "talking" vending machine invented.
1989 Pepsi Enters into India
1993 Coca Cola re-enters into India after the easing of economic norms
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CH: 5
Introduction to the Soft Drink
Market in India
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5. Introduction to the Soft Drink Market in India
Although the beverage industry has been in existence for quite some time now, yet it is still
at an infant stage considering its size and place in the market. India stands at third number
in the consumption of beverage, behind United States and China. It accounts for almost 10
per cent of global beverage consumption. Today, it is being looked as a country that offers
the greatest potential, even more so than China. This year, thebeverage industry in India is
being estimated to grow at 17% at Compounded Annual Growth Rate (CAGR).
Non-alcoholic Drinks Company actually sees India as a potential market because of the kind
of summer that India sees. The Coca-Cola Co reported its profit climbed 43 per cent in the
second quarter to two billion dollar, getting a boost from double-digit unit case volume
growth. The Indian CSD (carbonated soft drinks) market stands at 1.2 billion dollar and the
fruit-based beverages and bottled water at 600 million dollar and 300 million dollar,
respectively.
The wine industry in India is one of the most sought after market at present and all eyes are
on it. The budget announced by the finance minister is not being seen as very
advantageous to the wine industry as it did not announce any significant or major benefits all
round for it. It was expected to make wine sector a part of the food processing industry,
which would lead to uniformity in the state-wise tax structures. The wine industry in India
needs investment to grow to its rightful size of about 30 million cases and it is possible only
with lower production and marketing costs, taxes and increased competition.
As far as the beer industry is concerned, age-old excise policy on liquor and multiform
regulations are hitting the beer industry. The Punjab Excise Policy of 1995, which
inadvertently discourages breweries, while encouraging distilleries, has put the brewers in
the country in a total mess. The beer industry is clearly at a disadvantage. Repeated pleas
have failed to bang the governments deaf ear. Apart from this, the government needs to
make a uniform age limit to consume alcohol. Its different in different states. While an 18-
year old guy can consume alcohol in Goa, you need to be at least 21 to do the same in
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Mumbai. In Punjab, its even higher where it is kept at 25 years. The National law is 21
years. The budget was expected to cut down the taxes on beer that is more than most of the
countries in the world. While the average global taxes on price of the beer are 33.6 per cent,
in India its about 49 per cent and therefore, affordability of beer in the country is lowest
compared to world standards.
However, the impact on non-alcoholic industry has been different. For e.g., packaged
coconut water will be cheaper by rupees three for 200ml as the retail prices have been
reduced from Rs 15 to Rs 12, thanks to the abolition of a 16 per cent excise duty. The
finance minister has also totally withdrawn the 16 per cent excise duty on tea and coffee
mixes and puffed rice. India (1002 Mn kgs), China (990 Mn kgs), Sri Lanka (318.7 Mn kgs)
and Kenya (286.0 Mn kgs) accounts for 80 percent of the worlds tea production. In May, tea
production in India rose to 71,374 tonnes from 70,267 tonnes a year before. However,
output has declined to 215.84 million kg till May this year from 240.24 million kg last year.
The budget has also made dairy majors like Amul, Mother Dairy and Nestle happy because
the customs duty on bactofuges, that separates bacteria from milk, and increases the
Punjab Excise Policy of 1995 shelf life of milk, has been abolished. On a bactofuge that
costs between Rs 1.5 two crore, the companies will benefit rupees eight to Rs 10 lakh a
piece.
More and more companies are entering and creating niche for themselves in the Indian
budget industry, the latest being the fast moving consumer goods (FMCG) company Dabur.
It is coming up with a new fruit flavored beverage called Real Burst.
Indian soft drinks story is old since the time of Rajas Maharaja as they enjoyed several soft
drink like lassie, jaljeera, sharbat and tea etc. Now the Indian people have changed their
consumption pattern into soft drinks. According to Pepsi philosophy, its the madness that
encourages executive to think, to conjure up those creative tactics to knock the fizz out. Thewarriors are face to face once again here in India with different strategies and tactics to
attack the rival. Coca cola is focusing upon the joint ventures with the existing bottlers to
enhance its control on manufacturing in marketing of its products range and attain the
equality standards of its class. Countering it Pepsi has taken the battle in its own hands by
floating as investment of $95 billion to set Pepsi Co. India holdings as a subsidiary for
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company owned bottling operation (COBO). Both the companies are following different path
to reach the same destiny i.e. fetch the bigger portion of aerated soft drink market in India.
Serving annually against the world average of 80 bottles a month. Therefore, they are
putting in their best effort to woe the Indian consumer who has tea, coffee etc. that is why
water tea, coffee and nimbu pani are considered as the competitor of soft drinks.
Cola is well set with its 53 bottling sites throughout the country giving it an edge, over
competition by processing a well built and distribution set up. On the other hand Pepsi with 2
more years in India has been able to set an image of winner this time in India and get the
pulse of Indian soft drink market. The soft drink giants are leaving no stone unturned and
her for the long-terms.
Coca Cola has been penetrating the market through its wide product range with a
determination to change consumption pattern of soft drink in India. Firstly, they upgraded the
whole industry by introducing 300 ml bottles, which in turn had given the industry a booming
growth of 20% as compared to the earlier 5 % they want to develop a Coca culture and are
working on a strategy of offer soft drink in every possible package. In Coca Cola camp, the
idea of competition has not come from Pepsi, but from the other beverages such as Tea,
Coffee, Nimbu Pani and Water etc.
Pepsi is quite aggressive in its approach to Indian consumer. They are desperately working
on the strategy to work for 1.5 hour to buy a bottle of soft drink in comparison to the
international norms of 5 hour, a major hurdle to cross over for both the athletes for getting
No. 1 position.
India is one of the lowest soft drink consuming countries in the world. According to per
capita in India is 5 bottles per year, while highest consumption in USA of 800 bottles per
year. Lower, Lower middle & upper middle class consume 91% of soft drink market.
The consumption diagram graph of soft drink has never, decrease. If once, it has increased.
It is increasing at 24 25% per year. Even in India the market is constantly growing in
1993, the people of India consume only 0.7 lt/head, while in 1995 it increased from 0.7 to
0.93 lt/head, in 1997 it was 1.14 lt/head & in 2001 it was 1.62 lt/head.
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Table 1.1: No of Bottles Produced
Year No of Bottles produced (million)
1989 1968
1990 2070
1991 2195
1992 2490
1993 2800
1994 3000
1995 3240
1996 4000
1997 4450
1998 4920
1999 5670
2000 6480
2001 7000
Source: Research Paper
Market Share in India
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The two global majors Pepsi & Coca Cola dominate the soft drink industry market. Coca
Cola, which had winded up its business from India during the introduction of IERA regimere-entered in India after 16 years letter in 1993. Coca Cola has acquired a major soft drink
market by buying out local brands like Thums up, Limca & Gold Spot from Parle Beverages.
Pepsi although started a couple of years before Coca Cola in 1991, right now it has lower
market share. It has brought over Mumbai based Dukes range of soft drinks. Both Cola
manufactures Pepsi & Coca Cola come up with their own market share & claim to have
claimed to increase their share
Table 1.2: Market Share (in %) 2010
Brand Name Market Share (org figure) Market Share (IMRB)
Pepsi 35.6%
Coca Cola 57.8%
Other Brands 6.6%
Source: Economic Times
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Ch: 6
Company Profile
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6. Company Profile
6.1 Company Profile of Coke
Figure 5.1: CEO Coke
DOUGLASN DAFT
Chairman of the board and Chief Executive officer
ABOUT THE COCA COLA COMPANY CEO
Douglas N. Daft was elected chairman board of director and chief executive officer of the
Coca-Cola company on Feb. 17, 2000 Mr. Daft is the 11th chairman of the board in the
history of company.
Mr. Daft 60 joined the company in 1969 as planning officer in Sydney, Australia office. He
held of increasing responsibility throughout Asia and in 1982 was named vice president of
Coca-Cola Far East Ltd.
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In Dec.1988 Mr. Daft was named president of north pacific division and president of Coca-
Cola (Japan) co. Ltd. He moved the companys Atlanta headquarters.
In 1991 to assume the responsibility of president of the pacific group and in 1991 his
responsibility was expended to include the com. Africa Group and Schweppes Beverage
Division as well as the middle and Far East Group.
Mr. Daft was elected president and Chief operating officer of the Coca-Cola com. In Dec 99.
He serves on the board of Sun Trust Banks, the boys and girls club of America Catalyst the
Cerge-Ei foundation (Centre for economic Research and Graduate Education-Economic
Institute ) in the Czech Republic , the Lauder Institute for Management and International
Studies at the University of Pennsylvania, the Prince of Wales International Business Leader
Forum , the Grocery Manufactures of America The British American Chamber of
Commerce ,the G100,the Woodruff Arts Centre, the Commerce Club, and the McGraw-Hill
Companies. Mr. Daft is a trustee of Emory University, the American Assembly and the
Centre for Strategic &International Studies. He is also a member of the Trilateral
Commission, the Business Council and The Business Round Table.
AROUND THE WORLD
Although Coca-Cola was first created in the United State it quickly became popular
wherever it went. Their first International bottling plants opened in 1906 in Canada, Cubaand Panama soon followed by many more bottling plants in different countries .Today we
produce more than 300 brands in 200 courtiers and more than 70% of their income comes
from outside the U.S, but the real reason they are truly global company is that our product
meet the varied taste preferences of consumer everywhere.
COKE PARTNERS
The Coca-Cola Company works with a wide variety of organization to support health, fitness
and good nutrition.
The Coalition for Healthy and Active America (CHAA) CHAA was formed in 2003 by
concerned organization and national leader to educate parents, children, schools and
communities about the critical roles physical activity and nutrition education play in reversing
the alarming trends of childhood obesity. As a non profit National grassroots coalition, CHAA
is a various advocate for developing health and active lifestyle for Americas youth. CHAA is
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committed to working with schools to rededicate time for physical fitness giving parents the
freedom to their children make their own nutritional choice, building school business model
relationship that benefit our families by support healthy and active lifestyle and finding
solution to the childhood obesity that are both responsible and realistic American Council for
fitness and nutrition. The American Council for Fitness and Nutrition (ACFN) is a group of
food, beverage and consumer products companies, non profit organization and trade
association working together to improve the health of Americans, particularly youth by
encouraging a healthy balance between fitness and nutrition. The cornerstone of all ACFN
initiative is the idea that lasting solution to the nations obesity problem must be based on
sound science and behavioural research. Such policies are likely to help parents and their
children develop eating and exercise habits that lead to a healthier life.
Grocery Manufacture of America The Grocery Manufacture of America (GMA) represents
the food ,beverage and consumer products industry on key issue that affect the ability of
brand manufacture to market their products and deliver superior value to the consumer.
International Food Information Council (IFIC) Foundation the IFIC Foundation is a public
education foundation disseminating sound, science-based information on food safety
nutrition and health. International Life Science Institute (ILSI) is a non profit worldwide
foundation that seeks to improve the well being of the general public through the pursuit of
balance science. Its goal to further to understanding of scientific issue relating to nutrition
food safety toxicology risk assessment and industry.Kidnetic.com is a fun interactive website
that emphasize healthy achieved through s balance of physical activity and responsibility
eating habits The website gives young people and their parents the tools and idea to help
change habits and plant the seeds for healthy families tomorrow.Kidnetic.com is a program
of the International Food Information Council (IFIC) Foundation.
National Association for Sport and Education Association for sport and Physical Education
seeks to enhance knowledge and professional practice in sport and physical activity through
scientific study and dissemination of research based and experimental knowledge to
members and public.
National Soft Drink Association (NSDA) is the trade association for America Soft Drink
Industry serving the pup
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THE PRESENT POSITION OF COKE IN INDIA
Coke is a house hold name and in the lips of every one. In present time every person knows
the name of Coca Cola since India is one of the biggest markets for the Soft Drink Company
and sultry summer from March to the end of October and a huge population has immenselyhelped in the sales of coke in India.
Last year the market share of Coca-Cola was not specific. In this year companys top
management adopted new policy and increased the rate of all brands of Coke. By this
decision top management determined the rate of 300ml Rs.15.And the brand of 200ml
determine the rate of this brand Rs.10 only .By which medium size family can buy and enjoy
Coke. By this decision company marketing share has been increasing. In present time Coke
captured approximate 57.8% market share. Now Coke has made a huge shift away from the
distributors serving the retailers according to the type of service. Due to this Coke has
gained appropriate position in the minds of the retailer .It has now emerged as the winner
and has a good image in the market Cola have thus gained a status symbol mainly
attributed to its standard and well penetrated, advertising and extensive distribution network.
Total soft drink segment is growing at the rate of 10% per year still International standard
area considered the per capita consumption of these serving in rock bottom, less than even
our neighbour Pakistan and Bangladesh where it is four more as much. So with kind of a
market potential coke entered in India in 1991. The government in Pune in 1992 allowed the
plant to establish its first bottling plant. Now the company has grown to about 59 bottling
plants throughout India.
COKE BRANDS IN INDIA ORIGIN
COCA-COLA:
Developed in brass products in 1886, coca-cola is the most recognised and admiredtrademark around the globe. Not to mention the best selling soft drink in the world.
SPRITE:
In 1961, a citrus flavoured drink made its U.S. debut, using sprite boy as inspiration for the
name. This elf with silver hair and a big smile was used in 1940s advertising for coca-cola.
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Sprite is now the fastest growing major soft drink in the U.S., and the worlds most popular
lemon-lime soft drink. But In India It Is not of citrus in nature and is pure caffeinated
carbonated water.
FANTA:
The name FANTA was first registered as a trademark in Germany in 1941, when it was
used for a few years for the soft drink created from available material and flavours. The
name was then revived in 1955 in Naples, Italy, when it was used for the FANTA orange
drink we know today. It is now the trademark name for a line of flavoured drink sold around
the world.
DIET COKE:
The extension of the coca-cola name begun in 1982 with the introduction of diet coke (also
called coca-cola light in some countries). Diet coke quickly becomes the number- one selling
low-calories soft drink in the world.
VANILA COKE:
It is an ice-cream in taste launched in 2004. But it failed miserably in the Indian Markets
LIMCA:
This is thirstquenching beverages features a fresh and light lemon-lime taste and a light
hearted attitude. The Limca brand was introduced in 1971 and acquired by the coca-cola
company in 1993.
MINUTE MADE PULPY ORANGE:
This is a one of a kind natural orange drink introduced by Coke. It does contain natural pulp
but the juice inside is manufactured the same way as all the other drinks are manufactured
in the coke brand.
MAAZA:
Maaza launched in 1984 and acquired by the coca-cola company in 1993, is a non-
carbonated mango soft drink with a rich, juicy natural mango taste.
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THUMPS UP:
In 1993, the coca-cola company acquired this brand, which was originally introduced in
1977. Its strong and fizzy taste makes it unique carbonated Indian cola. It has the highest
market share in the Indian Soft drink industry.
KINLEY WATER:
This is the thirst quenching beverages features fresh the water with the saturated oxygen
level.
GEORGIA:
This was first introduced in 2004 it is hot tea and coffee products by Coke it is mostly sold in
restaurants and not in the local shops it is being sold both in the hot and the cold beveragesformat.
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6.2 The Company Profile of Pepsi
Figure 5.2: CEO PepsiCo
INDRA NOOYI
Chairman of the board and Chief Executive officer
ABOUT THE PEPSICO CEO
Nooyi joined PepsiCo in 1994 and was named president and CFO in 2001. Nooyi has
directed the company's global strategy for more than a decade and led PepsiCo's
restructuring, including the 1997 divestiture of its restaurants into Tricon, now known as
Yum Brands. Nooyi also took the lead in the acquisition ofTropicana in 1998, and merger
with Quaker Oats Company, which also brought Gatorade to PepsiCo. In 2007 she became
the fifth CEO in PepsiCo's 44-year history.
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Business officials rave at her ability to drive deep and hard while maintaining a sense of
heart and fun. According to Business Week, since she started as CFO in 2000[2], the
company's annual revenues have risen 72%, while net profit more than doubled, to $5.6
dollars billion in 2006.
Nooyi was named on Wall Street Journal's list of 50 women to watch in 2007 and 2008, and
was listed among Time's 100 Most Influential People in The World in 2007 and 2008. Forbes
named her the #3 most powerful women in 2008. While CEO of PepsiCo in 2008, Indra
Nooyi earned a total compensation of $14,917,701, which included a base salary of
$1,300,000, a cash bonus of$2,600,000, stocks granted of$6,428,538, and options granted
of$4,382,569.
AROUND THE WORLD
PepsiCo is a world leader in convenient snacks, foods and beverages with revenues of
more than $43 billion and over 198,000 employees. PepsiCo, Inc. is founded by Donald M.
Kendall, President and Chief Executive Officer of Pepsi-Cola and Herman W. Lay,
Chairman and Chief Executive Officer of Frito-Lay, through the merger of the two
companies. Pepsi-Cola was created in the late 1890s by Caleb Bradham, a New Bern,
N.C. pharmacist. Frito-Lay, Inc. was formed by the 1961 merger of the Frito Company,
founded by Elmer Doolin in 1932, and the H. W. Lay Company, founded by Herman W.Lay,
also in 1932. Herman Lay is chairman of the Board of Directors of the new company;
Donald M. Kendall is president and chief executive officer. The new company reports sales
of $510 million and has 19,000 employees. Pepsi-Cola Company - Pepsi-Cola (formulated
in 1898), Diet Pepsi (1964) and Mountain Dew (introduced by Tip Corporation in
1948).Frito-Lay, Inc. - Fritos brand corn chips (created by Elmer Doolin in 1932), Lay's
brand potato chips (created by Herman W. Lay in 1938), Cheetos brand cheese flavored
snacks (1948), Ruffles brand potato chips (1958) and Rold Gold brand pretzels (acquired
1961).Mountain Dew launches its first campaign "Yahoo Mountain Dew ... it'll tickle your
innards."
PEPSI PARTNERS
PepsiCo also has formed partnerships with several brands it does not own, in order to
distribute these or market them with its own brands.
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Frappuccino, Starbucks Double Shot, Starbucks Iced Coffee, Mandarin (license), D&G
(license), Lipton Brisk, Lipton Original Iced Tea,Lipton Iced Tea, Ben & Jerry's Milkshakes,
Dole juices & juice drinks (license), Sunny Delight (produced by PepsiCo forSunny Delight
Beverages)
POSITION OF PEPSI IN INDIA
Total soft drink segment is growing at the rate of 10% per year still International standard
area considered the per capita consumption of the Indian Soft drink industry is rock bottom,
less than even our neighbour Pakistan and Bangladesh where it is four times more than the
Indian consumption rate.PepsiCo established its business operations in India in the year
1989 It is now the 4th largest consumer products company in India PepsiCo has invested
more than USD 1 billion in India since its establishment. PepsiCo has a diverse range of
products from Tasty Treats to Healthy Eats It provides direct and indirect employment to
150,000 people in India It has 41 bottling plants in India and fast catching up to Coke, of
which 13 are company owned and 28 are franchisee owned It has 3 state-of-the-art food
plants in Punjab, Maharashtra and West Bengal
BRANDS OF PEPSI IN INDIA
PEPSI:
Pepsi is a hundred year old brand loved by over 200 million people worldwide. The largest
single selling soft drink brand in India is the ubiquitous 'socialiser' at every occasion 1886,
United States of America. Caleb Bradman, the man with a plan, got on to formulate a
blockbuster digestive drink and decided to call it Brads drink. It was this doctors potion that
was to become Pepsi Cola in 1898, and eventually, Pepsi in 1903. Pepsi has always played
on the front foot and since its inception has come out with revolutionary concepts like Diet, 2L
bottles, recyclable plastic cola bottles and the enviable My Can.
7 UP:
7UP, the refreshing clear drink with natural lemon and lime flavour was created in 1929.
7UP was launched in India in 1990 and its international mascot Fido Dido was used for
advertising in 1992 to position the brand as a cool drink for youngsters. Fido became an
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instant hit with his trendy look, laid back attitude and refreshing take on life. During the
brands early years in India, 7UP gained market leader status in the lemon lime category by
being one of the first to be nationally distributed as well as being marketed as a healthier
alternative to other soft drinks
TROPICANA:
Tropicana was founded in Bradenton, Florida, USA, in 1947. And is now enjoyed almost
everywhere in the world. Carefully nurtured for over 50 years, it has matured into one of the
most respected beverage brands. Today it is the World's no. 1 juice brand and is available in
63 countries. Since 1998, it has been owned by PepsiCo, Inc. Tropicana Premium Gold
was re-launched as Tropicana 100% in year 2008
SLICE:
Slice was launched in India in 1993 as a refreshing mango drink and quickly went on to
become a leading player in the category.
In 2008, Slice was relaunched with a 'winning' product formulation which made the
consumers fall in love with its taste. With refreshed pack graphics and clutter breaking
advertising, Slice has driven strong appeal within the category.
NIMBOOZ:
Nimbooz was launched in India this year on the 28th of February 2009. Latest addition to
portfolio of Pepsi Beverages Nimbooz is a great tasting product which has capitalized on the
existing familiarity & behavior of high frequency consumption of unpackaged / Home made
nimbu pani. It has been true to its Asli Indian Identity by owning and appropriating nimbu
Pani Codes such as the Matka (Earthen Pot) and Squeezer.
MOUNTIAN DEW:
The main formula of Mountain Dew was invented in Virginia, named and first marketed in
Johnson City, Tennessee and Knoxville, Tennessee in 1948. In India, Mountain Dew set the
soft drink category ablaze in 2003 with their iconic launch campaign Cheetah Bhi Peeta
Hai. 2007, the brand was re-launched with a completely new, punchier formulation with
communication that aimed at forging a strong emotional connect with our audience. Thus
came about the "Darr Ke Aage Jeet Hai" campaign, which acknowledged that fear was a
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very real and relevant aspect of the adventurous world and Mountain Dew, as a brand
wanted to encourage all youth in their moment of fear, to believe in themselves and just go
for it because beyond fear, lies victory.
MIRINDA:
Now when we think Mirinda, we think orange. But this soft drink brand has many other fruit
flavors; Mirinda Lemon was launched in 1998 & other flavors like Apple & Batberry that were
launched as in & outs.
Mirinda has always been about a great orange taste, which is now synonymous with the
brand. These were communicated through our great campaigns; the memorable Mirinda
Men to Taste Aisa Chaye Character Fisla Jaye.
AQUAFINA:
Aquafina was first launched in USA in the year 1994 and with its unique purification system
and great taste; Aquafina soon became the best selling brand in the country.
In India, Aquafinas journey began with the Bombay launch in 1999 and it was rolled out
nationally by the year 2000. On the strength of its brand appeal and distribution, Aquafina
has become one of India's leading brands of bottled water in a relatively short span.
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CH: 7
COMPARITIVE ANALYSIS OF
COKE AND PEPSI
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7. Comparative Analysis of Coke and Pepsi
The soft drink market all over the world has been witnessing to neck to neck battle between
the two major players, coca-cola and he Pepsi since the very beginning. The thirst
quenchers are trying to have the major chunk of the pie of carbonated soft drink market.
Both the player is spending their energies in building capacity, infrastructure, promotional
activities etc.
Coca-cola being 11 years older than Pepsi has dominated the scene in most of the soft
drink markets in the world and enjoying leadership in terms of market share. But the coca-
cola people are finding it hard to keep away Pepsi, which has been narrowing the gaps
regularly. the two are posing threats to each other in every nook and corner of the world
wide coca-cola has been earning most of its bread and butter through beverages sales,
Pepsi has multi products portfolio with some portion from the same business.
The two warriors are face to face once again herein India with different strategies and tactics
to attack the rivals. Coca-cola is focussing upon the joint venture with the existing bottlers
(Fobo) franchise owned bottling operations to enhance its control on manufacturing and
marketing of its products range and attain quality standards of its class. Countering its Pepsi
has taken the battle of its own hands by floating as investment of $ 95 billion to set Pepsi
Company. India holdings, as subsidiaries for (Cobo) company owned bottling operations.
Both companies are following different paths to reach the same destination i.e. to grab a
bigger portion of aerated soft drink market. Both consider India as a Hugh potential market,
as per capita consumption here is mere 3 serving annually against the world average of 80.
Therefore, they are putting there best efforts to woo the Indian consumer who has to work
for 1.5 hours to buy a bottle of soft drink. In comparison to international norms minutes, a
major hurdle to cross over for the athletes for getting no. 1 position comparison to the inter.
Coca-cola is well set with its 53 bottling sites through out the country giving it an edge over
competition by processing a well-built bottling and distribution set up. On the other hand,
Pepsi, with two more years in India, has been able to set as image of a winner in India and
has been able to get the pulse of the Indian soft drink market. The soft drink giants are
leaving on stone unturned and her for the long terms.
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Coca-cola has been penetrating the market through its worldwide products range with a
determination to change consumption pattern of soft drink in India. Firstly, they upgraded the
whole industry by introduction 300ml bottles, which in turn had given the industry a booming
growth of 20% as compared to the earlier 5%. They meant to develop a coca culture here
and are working on a strategy to offer soft drink in every possible package. In Coca-Cola
camp, the idea of competition has not come from Pepsi. But from the other beverages such
as tea, coffee, nimbus, pani, water etc. Coke has used a large sum on the visibility of its red
and white logo. They have been going along with aggressive marketing by enrolling Amir
Khan, Akshay Kumar and their advertisement to endorse their brand, the role models of its
targeted consumer the teenagers
Pepsi is quite aggressive in its approach to Indian consumer. They are desperately working
on the strategy to be the winner in the hot cola war between two big barons. According to
Pepsi philosophy, it is the madness that encourages executive to think, to conjure up those
creative tactics to knock the fizz out of their competition.. Pepsi have increased the fizz in
the market place by introducing the dispensers called fountain Pepsi and have been
enjoying a lead over its rival there. Coca-cola on the other hand, has been working in the
saying slow and steady wins the races side by retailing to every more of its competitors.
They have procured the shield of thumps up with a handsome market share in Indian soft
drink market. Countering commercial that used two chimpanzees to rock a snoop at coke,
thumps up with the ad line, dont be bender, and taste the thunder Also. Thumps up has
been positioned now them very near to that young image of Pepsi and giving it a through
time.
These cool merchants have put everything on fire. Its coke gets the status of the official
drink of the wills. World cup, Pepsi blushes as nothing official about it. As thumps up
projected as saare jahan se achcha, pepsi was passionate enough with freedom to be and
now the yeh dil maange more when thumps up came with thunder blast, the offered Pepsi
stuff card. If red is meant for coke, Pepsi chosen to be blue.
In the U.S., its a closer race between coke and Pepsi, said Bonnie Herzog, an industry
analyst with smith Barney. But when you take a look outside the U.S.. I think coca-cola has
the major lead.
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Indeed, 75% of Cokes profits now come from the foreign markets it dominates. While back
home the slugfest has gone on for decades.
I think makes us all better, said Pepsi vice president of marketing; Katie Lacey. Its alone
thing about working in a very competitive category. You absolutely are on your toes. We do
not let it dictate how are or think everyday. We are focused on how we are going to grow our
brands.
With public opinion split, theres is no. of problem for both coke and Pepsi. Volumes of
carbonated soft drink I north America is growing at less than one present a year. Meanwhile,
sports drinks like Gatorade are growing at 15% year. And bottled water is expending by 26
permanent annually. In a saturated soft drink market; water is where the growth and money
are, according to Herzog. For now, Pepsis Aquafina is beating cokes Dasani in the water
wars.
Its just the latest front in a battle between hundreds of Coke and Pepsi brands. Diet coke vs
diet pepsi, sprite vs. mountain dew, nestle vs. Lipton Tropicana vs. minute maid. And the list
goes on.
But for Pepsi- its not all about drinks. Some 60% of its profits come from its snack business.
From Fritos to lays to crack jack and Tostitos, Pepsi has virtual monopoly, with no
competition with coca-cola.
They are going after the younger consumer who purchase a single serve products, at a
convenience store 9-13, said Todd Stender, who fellows the company at Crowell Weedon
and co., and thats really where the profits are.
Cokes, meanwhile, just scored a big coup by winning the soft drink business at subway, a
fast food chain now bigger that McDonalds, that had previously served only Pepsi.
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Figure 6.1: Market Share of Indian Beverage Companies [Market Share (in %) 2010-11]
Market Share
PepsiCo India,
35.60%
Coca-Cola India ,
57.80%
Other Indian
Companies,6.60%
Coca-Cola India
PepsiCo India
Other Indian Companies
Source: Economic Times, org figure
The Pi Chart Shows That Coke has a major lead in India Capturing the huge Chunk of the
market share while Pepsi on the other hand has very less Market share compared to coke
but it is growing.
Table 6.1: Market Share of the Respective Companies [Market Share (in %) 2010]
PepsiCo (2010-11) Coca-Cola (2000-11)
Pepsi 13.1 % Coca Cola 8.2%
7 UP 5.8% Thums Up 16.4%
Mirinda Lemon 0.4% Sprite 12.2 %
Mirinda Orange 8.9% Limca 10.9%
Mountain Dew 5.8% Fanta 10%
Source: Economic Times
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The above table shows the dominance of Coca-Cola in India. Coke had used a good
strategy in buying of established Indian drinks Like Thumbs-up and Limca from Parle Agro
group of companies which now consist of 26% of the market share and thus grabbing a
huge piece of the market. Pepsi on the other hand is mostly surviving on its Pepsi cola
brand of drinks which consist of 13.1% which has the second largest market share after
Thumbs-up. Pepsi has a reason to smile as the 7-up and mountain dew brands are growing
fast and capturing the market share slowly but steadily.
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CH: 8
MARKET RESEARCH ANALYSIS
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8. Market Research Analysis
8.1 Analysis of the Questionnaire
1) Which soft drinks company products do you sell?
Coke Pepsi Both
Table 8.1: Retailers of Coke & Pepsi
Company
Retailers
Coke 72
Pepsi 25
Both 3
Figure 8.1: Graph of Number of retailers Of Coke and Pepsi
72
25
3
0% 10% 20% 30% 40% 50% 60% 70% 80%
Percentage
Coke
Pepsi
Both
Company
Retailers
Retailers
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It was a rare sight to see a restaurant or a panwala selling both the products. And if you see
one then he might be the most hassled person on earth but the retailers of Pepsi are quite
few compared to coke in Delhi. In an area of udyog vihar alone there is only a single retailer
of Pepsi compared to 12 retailers selling Coke
2)Does the soft drink company provide you with refrigeration facilities?
Coke Yes No
Pepsi Yes No
Yes the company does provide refrigeration facilities to the retailer who has to be an
exclusive seller of either Coke or Pepsi. If the person id selling both he might have to
purchase the fridge or use his own fridge to sell the product. This is one of the main reasons
that there are extremely less retailers who sell both
3)Dose the company provide you with mechanics for the repair andmaintenance of fridges?
Coke Yes No
Pepsi Yes No
The company does provide mechanics and maintenance facilities free of cost to the retailer
here no discrimination is done when it comes to the repair and maintenance of the fridges
among retailers. The Maintenance and repair of the fridges are done free of cost
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4) What are the conditions of bottles provided by the company?
Coke Excellent Good Neutral Bad Worse
Pepsi Excellent Good Neutral Bad Worse
COKE
Table 8.2: Conditions of Bottles of Coke rated by Retailers
Conditions Coke
EXCELLENT 24
GOOD 36NEUTRAL 14
BAD 16
WORSE 10
Fig 8.2: Graph of Conditions of bottles in Coke
Coke
24
36
1416
10
0
5
10
15
20
25
30
35
40
EXCELLENT GOOD NEUTRAL BAD WORSE
Condition
Coke
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Table 8.3 Weighted Mean of the Conditions of bottles of Coke
Conditions Coke Rank W.A
EXCELLENT 24 1 24 Weighted
GOOD 36 2 72 MEANNEUTRAL 14 3 42 2.52
BAD 16 4 64WORSE 10 5 50
100 252
Here the mean after taking out the weighted average is 2.52 which is exactly the middle
mark for coke where the retailers are neither satisfied nor dissatisfied with the quality of
bottles that come from coke. They find the quality ok thus that means there is room for
improvement for the quality of bottles provided by coke.
PEPSI
Table 8.4: Conditions of Bottles of Pepsi rated by Retailers
Conditions PepsiEXCELLEN
T 22
GOOD 22
NEUTRAL 32
BAD 14
WORSE 10
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Figure 8.3: Graph of the Conditions Of bottles Of Pepsi
Pepsi
22 22
32
14
10
0
5
10
15
20
25
30
35
EXCELLENT GOOD NEUTRAL BAD WORSE
Conditions
Pepsi
Table 8.6:Weighted Mean of Conditions Of bottles Of Pepsi
Here the
weighted mean
average is
lower in pepsithan in coke signalling that the quality is a bit less than compared to coke when it comes to
bottles.
Both the companies have certain rules and regulations considering the refilling of old bottles
and then using new bottles. Both the companies sterilises the bottles before reusing them.
Here the retailers are more satisfied with the conditions of the bottles of Coke
Conditions Pepsi Rank W.A EXCELLEN
T 22 1 22GOOD 22 2 44 Weighted
NEUTRAL 32 3 96 Mean
BAD 14 4 56 2.68
WORSE 10 5 50
100 268
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5)If the bottles are broken in transit or in the shop due to naturalcauses or calamities then does the company bear the loss for you?
Coke Yes No
Pepsi Yes No
Here both the companies follow same policy of cap in the bottle. If the bottle is broken in
transit the company replaces the bottle and yes the company replaces the bottle any time
when it is broken provided the cap of the bottle is still intact.
6)If the products have crossed their expiry dates then dose thecompany replace the products for you?
Coke Yes No
Pepsi Yes No
7)If yes then
Coke Replace at your own cost Buy Back Replace products free of charge
Pepsi Replace at your own cost Buy Back Replace products free of charge
The expiration of bottles or people not consuming the drinks is a rare case. But just in case
both the companies replace their products if it has crossed the expiration date free of
charge.
8) How many distributors of the company are there in your area?
Coke 0-2 2-4 4-6 more than 6
Pepsi 0-2 2-4 4-6 more than 6
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A particular area consist of maximum 3 to minimum 1 distributor depending on the size and
type of area Vatva and Naroda have 3 distributors while Paldi and Ellis bridge have 2
distributors and Vijay char Rasta area or Memnagar has only 1 distributor for the drinks. In
paladin & bhatta Area has one Pepsi Seller and also has one seller Near NID and one in
Shantivan which is extremely less compared to Coke
9)When do you replenish your stock?
Weekly Fortnightly Monthly Quarterly
Table 8.7: Time of Replenishing of Stock By retailers
TimeReplen
ish
WEEKLY 85FORTNIGH
TLY 15
MONTHLY 0
QUATERLY 0
Figure 8.4: Graph of Replenishment of Stock by Retailers
85
15
0%
0%
0 10 20 30 40 50 60 70 80 90
Time
WEEKLY
FORTNIGHTLY
MONTHLY
QUATERLY
%
Replinhment
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The retailers who replenish fortnightly are mostly users of wending machines
where they replenish their stock fortnightly
10) What is the quantity you usually order?
The quantity is usually ordered with depending on the demand or the amount the retailers
thinks he can sell. Usually the pan walas order 2 to 3 crates. But there were other retailers
ordering more or less than the above specified quantity
10)Are you satisfied with your replenishment you get?
Coke Very Satisfied Satisfied Neutral Dissatisfied
Very Dissatisfied
Pepsi Very Satisfied Satisfied Neutral Dissatisfied
Very Dissatisfied
COKE
Table 8.8: Satisfaction level of Replenishment of coke
Satisfaction Level
Replenishment of Coke
Very
satisfied 23Satisfied 17
Neutral 34
Dissatisfied 24very
dissatisfied 2
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Table 8.9: Weighted average mean of replenishment satisfaction level
SatisfactionLevel
Replenishment ofCoke Rank W.A
Very satisfied 23 1 23 Weightedsatisfied 17 2 34 Mean
Neutral 34 3 102 2.65dissatisfied 24 4 96
very dissatisfied 2 5 10100 265
Fig 8.5 Graph ofSatisfaction level of Replenishment of coke
23
17
34
24
2
0 5 10 15 20 25 30 35
Very satisfied
satisfied
Neutral
dissatisfied
very dissatisfied
%
Replenishment of Coke
Replenishment of Coke
The retailers are not satisfied with the replenishment of Coke as retailers who mostly want to
sell Thumbs-up or Sprite only are the ones who are unsatisfied with the replenishment of
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coke as 1 to 2 crates of Coke bottles are pushed along together with thumbs-up or Sprite for
the retailers to sell.
PEPSI
Table 8.10: Satisfaction level of Replenishment of pepsi
Satisfaction Level
Replenishment of Pepsi
Verysatisfied 12
satisfied 37
Neutral 34dissatisfie
d 17
verydissatisfie
d 0
Table 8.11: Weighted average mean of replenishment satisfaction level
SatisfactionLevel
Replenishment ofPepsi Rank W.A
Very satisfied 12 1 12 Weightedsatisfied 37 2 74 Mean
Neutral 34 3 102 2.56
dissatisfied 17 4 68
very dissatisfied 0 5 0100 256
Fig 8.5 Graph ofSatisfaction level of Replenishment of pepsi
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12
37
34
17
0
0 5 10 15 20 25 30 35 40
Very satisfied
satisfied
Neutral
dissatisfied
very dissatisfied
%
Replenishment of Pepsi
Replenishment of Pepsi
The Retailers of pepsi are more satisfied with the retailers of coke as there is no pushing
incidence when it comes to pepsi. The market for Pepsi is 13% which is the second highest
in the country after thumbs-up. They give with retailer whatever replenishment they need
The retailers are more satisfied with the replenishment of Pepsi rather than coke because
the people of Delhi generally favour Thumbs-Up rather than coke and thus the preference of
coke is low compared to thumbs-up so sometimes 1 to 2 cerates are sometimes pushed to
the retailer to sell coke unlike Pepsi where it sells the products which the retailer desire
11)What is the lead time?
The lead time is one day from the order given. If Order is given on Monday the product
ordered arrives at the doorstep of the retailer on the very next day i.e. Tuesday
12)Are you satisfied with the lead time?
Coke Very Satisfied Satisfied Neutral Dissatisfied
Very Dissatisfied
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Pepsi Very Satisfied Satisfied Neutral Dissatisfied
Very Dissatisfied
Here the retailers are very satisfied with the lead time and have no negativity about it.
13)Do you place order with the dealer or directly with the company?
Coke Dealer Company
Pepsi Dealer Company
COKE
Table 8.12: Distribution Level in Coke
Coke
Dealership 45
Company 55
Table 8.6: Graph Distribution Level in Coke
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Coke
55
45
0
10
20
30
40
50
60
Dealership Company
%
Coke
Coke has a mixture of dealership and direct company to middle man dealings. The company
has its own dealers and the brand of thumbs-up and sprite which have the highest market
share. The company 5 years ago use to deal with the retailers through dealership but now
slowly removing with the middle man and directly deals with the retailers
PEPSI
Table 8.13: Distribution Level in Pepsi
Pepsi
Dealership 100
Company 0
Table 8.7: Graph Distribution Level in Pepsi
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Pepsi
0
100
0
20
40
60
80
100
120
dealership Company
%
Pepsi
PepsiCo dose not have direct dealings with the retailers. It first sells it product to the dealers
and then from dealers to the retailers. All the grievances and orders or communication for
PepsiCo is done by the dealers
14)Any schemes or discounts in bulk buying?
Coke Yes No
Pepsi Yes No
The company dose gives discounts or gifts in bulk buying. For example the company
sometimes give an extra crate of coke depending on the amount of order. Sometimes it may
not be in margins or crates of coke but in gifts like a handbag or wall clock or items to or
associative needed by the shop
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15)What are the payment conditions of the company?
Coke pay in advance pays on arrival of the product pay to
the salesman later
Pepsi pay in advance pay on arrival of the product pay to
the salesman later
Here in both the companies the retailers have to pay check to the sales man on
arrival of the product.
16)Are you satisfied with the payment conditions?
Coke Very Satisfied Satisfied Neutral Dissatisfied
Very Dissatisfied
Pepsi Very Satisfied Satisfied Neutral Dissatisfied
Very Dissatisfied
Here the retailers of both the companies are extremely satisfied by the company norms ofpayment and dont have any negativities about it.
17)Are you satisfied with the margins given to you by the company?
Coke Very Satisfied Satisfied Neutral Dissatisfied VeryDissatisfied
Pepsi Very Satisfied Satisfied Neutral Dissatisfied Very
Dissatisfied
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COKE
Table 8.14: Satisfaction Level in Margin of Coke
Satisfaction level
Marginof Coke
Verysatisfied 0
Satisfied 17
Neutral 49Dissatisfie
d 28very
dissatisfied 6
Table 8.15: Weighted Average Mean of Satisfaction Level Coke
Satisfactionlevel Margin of Coke Rank W.A
Very satisfied 0 1 0 Weighted
satisfied 17 2 34 MeanNeutral 49 3 147 3.23
dissatisfied 28 4 112
very dissatisfied 6 5 30100 323
Table 8.8: Graph Satisfaction Level in Coke
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0
17
49
28
6
0 10 20 30 40 50
Very satisfied
satisfied
Neutral
dissatisfied
very dissatisfied
%
Margin of Coke
Margin of Coke
Here the retailers are more dissatisfied with the margin available of coke as they are given
maximum Rs 1 to Rs 1.5 and in which they have to pay their own refrigeration electricity.
The retailers always came up with the answer that that coke can give more margins to them.
PEPSI
Table 8.16: Satisfaction Level in Margin of Pepsi
Satisfaction level
Marginof Pepsi
Verysatisfied 0
Satisfied 11
Neutral 60Dissatisfie
d 25
verydissatisfied 4
Table 8.17: Weighted Average Mean of Satisfaction Level Pepsi
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Satisfactionlevel Margin of Pepsi Rank W.A
Very satisfied 0 1 0 Weighted
satisfied 11 2 22 Mean
Neutral 60 3 180 3.22
dissatisfied 25 4 100
very dissatisfied 4 5 20100 322
Figure 8.8: Graph Satisfaction Level in Pepsi
0
11
60
25
4
0 10 20 30 40 50 60
%
Very satisfied
satisfied
Neutral
dissatisfied
very dissatisfied
Margin of Pepsi
Margin of Pepsi
Here also the retailers feel the same about Pepsi as they feel that they can receive more
margins from the company. Here the retailers are more dissatisfied than satisfied.
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18)According to you which factor plays a major role in achieving salesfor Coke or Pepsi? (Rank 1-6)
Coke Pepsi
Brand Name
Price
Availability
Loyalty
Quality
Packaging
(Here to solve the above question we used SPSS instead of Excel to solve the question)
COKE
Table 8.18: Ranked Brand Name Coke
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Brand name
Frequency Percent Valid Percent
Cumulative
Percent
Valid 1.00 34 34.0 34.0 34.0
2.00 19 19.0 19.0 53.0
3.00 35 35.0 35.0 88.0
4.00 12 12.0 12.0 100.0
Total 100 100.0 100.0
Figure 8.9: Graph Ranked brand name Of Coke
The brand name of coke is given a mean of 2.25 to coke stating it to be one of the
important factors for the sales of coke it has given the least mean to the brand name.
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Table 8.19: Ranked Price of Coke
Price
Frequency Percent Valid Percent
Cumulative
Percent
Valid 2.00 6 6.0 6.0 6.0
3.00 15 15.0 15.0 21.0
4.00 21 21.0 21.0 42.0
5.00 28 28.0 28.0 70.0
6.00 30 30.0 30.0 100.0
Total 100 100.0 100.0
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Figure 8.10: Graph Price of Coke
The retailers have ranked the price of the coke brand which is the second least amean of 4.61 stating that price is not a major factor when it comes to bottled
beverages of Coke. People do not see the price of the product and buy it. They buy it
usually out of thirst or taste of the product
Table 8.19: Ranked Availability Coke
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Availability
Frequency Percent Valid Percent
Cumulative
Percent
Valid 1.00 20 20.0 20.0 20.0
2.00 30 30.0 30.0 50.0
3.00 11 11.0 11.0 61.0
4.00 25 25.0 25.0 86.0
5.00 14 14.0 14.0 100.0
Total 100 100.0 100.0
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Figure 8.11: Graph Ranked Availability of Coke
The Availability of coke is a third major contributor to the sales of coke since it is
evident that retailers of coke are more than pepsi. So even though a person may be
loyal to pepsi but if the availability of retailers of pepsi is less then he will surely sift
to coke for the time being. Thus more number of retailers means more sales of coke
Table 8.20: Ranked Loyalty Coke
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Loyalty
Frequency Percent Valid Percent
Cumulative
Percent
Valid 1.00 30 30.0 30.0 30.0
2.00 23 23.0 23.0 53.0
3.00 16 16.0 16.0 69.0
4.00 17 17.0 17.0 86.0
6.00 14 14.0 14.0 100.0
Total 100 100.0 100.0
Figure 8.12: Graph Ranked Loyalty of Coke
Loyalty is another factor contributing to the sales of coke as a lot of people are loyal
to the thumbs-up brand and also the sprite and Limca brands of coke as there is a
major fan following for some of the brands of coke in India it is able to hold a major
part of the market share in India.
Table 8.21: Ranked Quality Coke
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Quality
Frequency Percent Valid Percent
Cumulative
Percent
Valid 1.00 16 16.0 16.0 16.0
2.00 22 22.0 22.0 38.0
3.00 23 23.0 23.0 61.0
4.00 11 11.0 11.0 72.0
5.00 22 22.0 22.0 94.0
6.00 6 6.0 6.0 100.0
Total 100 100.0 100.0
Figure 8.13: Graph Ranked Quality of Coke
Here quality is another important factor in the sales of coke after the pesticide issue
and the later enrolment of brand Ambassador Amir Khan for coke the people have
again jumped the Coke band wagon. The increasing sales of Coca- Cola are the
presence of a legible and a strong brand ambassador and the great improvement in
the quality of the products of Coca-cola. It could also be that the pesticide issue was
a blessing in disguise of coca-cola
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Table 8.22: Ranked Packaging Coke
Packaging
Frequency Percent Valid Percent
Cumulative
Percent
Valid 4.00 14 14.0 14.0 14.0
5.00 36 36.0 36.0 50.0
6.00 50 50.0 50.0 100.0
Total 100 100.0 100.0
Figure 8.14: Graph Ranked Packaging of Coke
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Packaging is the least important when it comes to the sales of the bottled products as
they do not effect sales at all. People are not induced by packaging at all they just buy
the product for the taste brand name and loyalty towards the product
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Over all you can see the least meaned attribute is Brand name loyalty and then
quality which is a big factor that plays a role in the sales of coke. The retailers
say that the packaging or the price dose not matter to the customers but they
should get the product that they liked. And also coke is available almost
everywhere it has got more retail chains compared to that of Pepsi
The Shopkeepers also told the story of thumbs-up which is has the highest
market share in the soft drinks market and coke has got success mainly due
to thumbs-up and also mentioned that cokes advertisements are much better
than compared to Pepsi.
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PEPSI
Table 8.23: Ranked Brand Name Pepsi
Figure
8.15:
Graph
Ranked
Brand
name of
Pepsi
Brand name
Frequency Percent Valid Percent
Cumulative
Percent
Valid 1.00 26 26.0 26.0 26.0
2.00 21 21.0 21.0 47.0
3.00 27 27.0 27.0 74.0
4.00 17 17.0 17.0 91.0
5.00 5 5.0 5.0 96.0
6.00 4 4.0 4.0 100.0
Total 100 100.0 100.0
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The brand name of Pepsi is given a mean of 2.66 stating it to be one of the important
factors for the sales of the brand; it has given the least mean to the brand name.
Compared to coke the brand rating for pepsi is less
Table 8.24: Ranked Price Pepsi
Price
Frequency Percent Valid Percent
Cumulative
Percent
Valid 1.00 11 11.0 11.0 11.0
2.00 17 17.0 17.0 28.0
3.00 11 11.0 11.0 39.0
4.00 20 20.0 20.0 59.0
5.00 10 10.0 10.0 69.0
6.00 31 31.0 31.0 100.0
Total 100 100.0 100.0
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Figure 8.16: Graph Ranked Price Pepsi
The retailers have ranked the price of the PepsiCo brand which is the second least a
mean of 4.61 stating that price is not a major factor when it comes to bottled
beverages of Coke. People do not see the price of the product and buy it. They buy it
usually out of thirst or taste of the product
Table 8.25: Ranked Availability Pepsi
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Availability
Frequency Percent Valid Percent
Cumulative
Percent
Valid 2.00 10 10.0 10.0 10.0
3.00 26 26.0 26.0 36.0
4.00 27 27.0 27.0 63.0
5.00 31 31.0 31.0 94.0
6.00 6 6.0 6.0 100.0
Total 100 100.0 100.0
Figure 8.17: Graph Ranked Availability Pepsi
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The Availability rating of Pepsi is much less compared to coke the coke rating is 2.88while the rating of PepsiCo is 3.97 which are much less compared Coke. Maybe the
reasons for less market share is the less availability of pepsi compared to coke
Table 8.26: Ranked Loyalty Pepsi
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Loyalty
Frequency Percent Valid Percent
Cumulative
Percent
Valid 1.00 33 33.0 33.0 33.0
2.00 21 21.0 21.0 54.0
3.00 17 17.0 17.0 71.0
4.00 9 9.0 9.0 80.0
5.00 15 15.0 15.0 95.0
6.00 5 5.0 5.0 100.0
Total 100 100.0 100.0
Figure 8.18: Graph Ranked Loyalty Pepsi
Loyalty is a major factor for the sales of PepsiCo as the retailers suggest that many
people like pepsi and stick to it and thats why the presence of pepsi is there in the
Indian market there is a huge fan following of the mountain dew brand. The retailers
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have given a mean rank of loyalty 2.67 to pepsi which is more or less as same as the
loyalty rating of coke sometimes bettering the loyalty of coke
Table 8.27: Ranked Quality Pepsi
Quality
Frequency Percent Valid Percent
Cumulative
Percent
Valid 1.00 21 21.0 21.0 21.0
2.00 21 21.0 21.0 42.0
3.00 19 19.0 19.0 61.0
4.00 16 16.0 16.0 77.0
5.00 11 11.0 11.0 88.0
6.00 12 12.0 12.0 100.0
Total 100 100.0 100.0
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Figure 8.19: Graph Ranked Quality Pepsi
The quality of pepsi was never in doubt but here the quality rating of pepsi is given
here more ranking compared to coke. The coke quality ranking was given less due to
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the pesticide issue. Here the mean rank is 3.11 given by the retailers to the brand
Pepsi
Table 8.18: Ranked Packaging Pepsi
Packaging
Frequency Percent Valid Percent
Cumulative
Percent
Valid 1.00 9 9.0 9.0 9.0
2.00 10 10.0 10.0 19.0
4.00 11 11.0 11.0 30.0
5.00 28 28.0 28.0 58.0
6.00 42 42.0 42.0 100.0
Total 100 100.0 100.0
Figure 8.9: Graph Ranked Packaging Pepsi
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Packaging is the least important when it comes to the sales of the bottled products.
The retailers have given a mean rank of 4.65 to the packaging of the product, as they
do not affect sales at all. People are not induced by packaging at all they just buy the
product for the taste brand name and loyalty towards the product
Over all you can see above that the brand name and loyalty being the lowestmean thus we can say t
top related