CHAPTER 1

INDUSTRY PROFILE

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A drink or beverage is a liquid which is specifically prepared for human consumption.

In addition to filling a basic human need, beverages form part of the culture of human

society. Types of beverages:

Water

Despite the fact that all beverages contain water, water itself is not classed as a

beverage. The word beverage has traditionally been defined as not referring to water.

Alcoholic beverages

An alcoholic beverage is a drink that contains ethanol, commonly known as alcohol

(although in chemistry the definition of "alcohol" includes many other compounds).

Beer has been a part of human culture for 8,000 years. In Germany, Ireland, the United

Kingdom, and many other European countries, drinking beer (and other alcoholic

beverages) in a local bar or pub is a cultural tradition.

Non-alcoholic beverages

Non-alcoholic beverages are drinks that usually contain alcohol, such as beer and wine,

but contain less than 0.5% alcohol by volume. This category includes low-alcohol beer,

non-alcoholic wine, and apple cider.

Fruit juice

Fruit juice is a natural product that contains few additives, or none. Citrus products

such as orange juice and tangerine juice are very familiar breakfast beverages.

Grapefruit juice, pineapple, apple, grape, lime, and lemon juice are also familiar

products. Coconut water is a highly nutritious and refreshing juice

Many kinds of berries are crushed and their juices mixed with water and sometimes

sweetened. Raspberry, blackberry and currants are often popular juices drinks but the

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percentage of water also determines their nutritive value. Juices were probably

humankind's earliest drinks besides water. Grapes juice that was allowed to ferment

produced the alcoholic drink wine.

Fruits are highly perishable and so the ability to create juices and store them was of

significant value. Some fruits are highly acidic and mixing them with additional water

and sugars or honey was often necessary to make them palatable. Early storage of fruit

juices was labor intensive, requiring the crushing of the fruits and the mixing of the

resulting pure juices with sugars before bottling and capping them.

Orange juice and coconut water remain by far the most highly consumed juices on the

market and are there because of their valuable nutrients and hydration abilities.

Hot beverages

A hot beverage is any beverage which is normally served heated. This may be through

the addition of a heated liquid, such as water or milk, or by directly heating the

beverage itself. Some examples of hot beverages are:

Coffee-based beverages

o Café au lait

o Cappuccino

o Coffee

o Espresso

o Frappé

o Flavored coffees (mocha etc.)

o Latte

Hot chocolate

Horlicks

Hot cider

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o Mulled cider

Glühwein

Tea-based beverages

o Flavored teas (chai etc.)

o Green tea

o Pearl milk tea

o Tea

Soft drinks

The term "soft drink" specifies the absence of alcohol in contrast to "hard drink" and

"drink". "Drink" is nominally neutral but often connotes alcoholic content.

Beverages such as soda pop, sparkling water, iced tea, lemonade, squash, and fruit

punch are the most common soft drinks. Milk, hot chocolate, tea, coffee, milkshakes,

and tap water are not considered to be soft drinks.

Some carbonated soft drinks are available in versions that are sweetened with a sugar

substitute.

Any drink that is not hard liquor can be referred to as a 'soft drink'; however, in this

piece 'soft drink' refers to carbonated, sweetened beverages also known as soda or soda

pop. Following are the various companies which manufacture soft drinks:

Pepsi Co.

Coca Cola

RC Cola

Perrier

Drinko

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Bundaberg Kirks

Market Share in India

These two soft drink companies (Coca cola &Pepsi) acquire the major share of the soft

drink Industry and always remain in the war to get the majority of market share with

each other. These companies always be pioneer in using various innovative technology

and method to become the market leader. These companies present the world new

innovative ways of doing the marketing and how take advantage of various

opportunities and how to use your strength in a better way.

In India currently colas (carbonated soft drinks) products comprises 61% and non-cola

segment constitutes 36% of the total soft drink market whereas 2% is covered under

other various drinks like apple juice, cold coffee, cold tea etc.

Market share in U.S.A

U.S. non-alcoholic beverage market share, by volume

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CHAPTER 2

COMPANY PROFILE

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1965 Milestones

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 Wale, also in 1932.

Herman Lay is chairman of the Board of Directors of the new company; Donald M.

Kendall is president and chief executive officer. The new company reports sales of

$510 million and has 19,000 employees. Major products of the new companies are:

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).

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Mountain Dew launches its first campaign "Yahoo Mountain Dew ...

it'll tickle your innards."

1970 Milestones

PepsiCo sales pass the $1 billion mark. The company has 36,000 employees.

PepsiCo moves from New York City to new world headquarters in Purchase,

N.Y. The new corporate headquarters feature a building by one of America's

foremost architects, Edward Durrell Stone (1902-1978), set on a campus of 144

acres amid an outdoor sculpture garden.

Frito-Lay begins a program of expansion. Over the next decade, the company

opens, on average, more than one new plant a year.

W.C. Fritos is introduced as Frito-Lay's new advertising mascot.

Wilson Sporting Goods, a top name in sports equipment, joins PepsiCo. It is

divested in 1985.

Pepsi introduces the industry's first two-liter bottle.

Pepsi is the first company to respond to consumer preference with lightweight,

recyclable, plastic bottles.

1975 Milestones

PepsiCo has 49,000 employees

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Pepsi Light, with a distinctive lemon taste, is introduced as an alternative to

traditional diet colas.

1980 Milestones

PepsiCo Food Service International (PFSI) is formed to focus on overseas

development of restaurants.

PepsiCo now has 111,000 employees.

First presentation of the international Donald M. Kendall Bottler-of-the-Year

Award.

Frito-Lay begins nationwide roll-out of Grandma's brand cookies.

Garden designer Russell Page (1906-1985) begins to extend the gardens at

PepsiCo.

Pepsi is #1 in sales in take-home market.

1985 Milestones

PepsiCo is now the largest company in the beverage industry. The company has

revenues of more than $7.5 billion, more than 137,000 employees.

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Pepsi-Cola products are available in nearly 150 countries and territories around

the world. Snack food operations are in 10 international markets.

Frito-Lay expands into new headquarters in Plano, Texa

PepsiCo's first line of sweet snacks, Sonrics, is added in Mexico.

The cola war takes "one giant sip for mankind," when a Pepsi "space can" is

successfully tested aboard the space shuttle.

Pepsi's successful "Entertainment Marketing" strategy is extended, with singers

Lionel Richie and Tina Turner and actor Michael J. Fox, among others.

Pepsi distributes products in China.

1990 Milestones PepsiCo stock splits three-for-one.

PepsiCo acquires a controlling interest in Gamesa, Mexico's largest cookie

company.

Frito-Lay advertising for Doritos brand tortilla chips features talk celebrity Jay

Leno.

PepsiCo signs the largest commercial trade agreement in history with the Soviet

Union.

PepsiCo profits exceed $1 billion for the first time.

1995 Milestones

Pepsi-Cola introduces "Nothing else is a Pepsi" theme line.

Pepsi-Cola is top ad scorer in Super Bowl.

Mountain Dew sponsors the Grammy Awards. Theme line is "Been There,

Done That, Tried That."

The Pepsi Lipton Tea Partnership debuts new ad campaign emphasizing

"There's only one Original."

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Pepsi-Cola introduces Smooth Moos Smoothies, a line of low-fat dairy shakes.

Frito-Lay aggressively expands its low/no-fat snack segment. Baked Lays is

introduced.

Frito-Lay tests Baked Tostitos, Rold Gold Fat Free Pretzels, Ruffles Reduced

Fat Potato Chips and Tostitos fat-free salsas and black bean dip brands.

Campaign line is "Taste the fun, not the fat."

PepsiCo will introduce Lay's brand potato chips in 20 markets throughout the

world.

2000 Milestones

Pepsi-Cola revives its "Pepsi Challenge" advertising campaign. Challenge includes

Pepsi One and Diet Coke as well as regular cola.

Pepsi-Cola teams up with Yahoo Inc., the biggest web navigation company, in a

multimedia marketing campaign aimed at teens and young adults.

Tropicana, in a joint venture with Galaxy Foods Co., will introduce an icy smoothie

soy milk-and-fruit drink, made with juice, fruit puree along with soymilk and soy

protein.

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Aquafina brand bottled water becomes the best-selling brand of single-serve bottled

water in US retail channels.

PepsiStuff.com, a web site for merchandise, discounts and digital music files from

biggest names in movies, music, video games, apparel and sports is launched in

joint promotion with Yahoo.

Pepsi-Cola launches "Sierra Mist" a caffeine-free, lemon/lime soda.

2009 Milestones

PepsiCo is named to the 'Best Companies for Multi Cultural Women' list by

Working Mother magazine

PepsiCo joins Ceres, a leading coalition of investors, environmental groups and

public interest organizations working to address sustainability efforts

Near East brand launches two new products—Pearled Couscous side dish and

Near East Gourmet Meal Kits

So Be Life water introduces two new zero-calorie flavors – Acai Fruit Punch

and Mango Melon

Pepsi celebrates its 75th anniversary in Canada

PepsiCo honored with 'Respect Award' for its commitment to diversity by the

Gay, Lesbian and Straight Education Network (GLSEN)

PepsiCo-Almarai joint ventures acquires stake in Jordanian dairy company,

Teeba

Frito-Lay Turkey honored with 'Environment-Friendly Industrial Plant' award

from the Kocaeli Chamber of Industry

PepsiCo creates Baked Snacks North America Business Unit to meet consumers

interest in more nutritious snacks and foods

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PepsiCo opens new Russian beverage plant in Domodedovo, the largest bottling

plant in PepsiCo's global system

Acquisitions and divestments

Between the late-1970s and the mid-1990s, PepsiCo expanded via acquisition of

businesses outside of its core focus of packaged food and beverage brands; however it

exited these non-core business lines largely in 1997, selling some, and spinning off

others into a new company named Tricon Global Restaurants, which later became

known as Yum! Brands, Inc. PepsiCo also previously owned several other brands that it

later sold, in order to allow it to return focus to its primary snack food and beverage

lines, according to investment analysts reporting on the divestments in 1997. Brands

formerly (no longer) owned by PepsiCo include: Pizza Hut, Taco Bell, KFC, Hot 'n

Now, East Side Mario's, D'Angelo Sandwich Shops,Chevys Fresh Mex, California

Pizza Kitchen, Stolichnaya (via licensed agreement), Wilson Sporting Goods and North

American Van Lines.

The divestments concluding in 2007 were followed by multiple large-scale

acquisitions, as PepsiCo began to extend its operations beyond soft drinks and snack

foods into other lines of foods and beverages. PepsiCo purchased the orange juice

company Tropicana Products in 1998, and merged with Quaker Oats Company in 2001,

adding with it the Gatorade sports drink line and other Quaker Oats brands such as

Chewy Granola Bars and Aunt Jemima, among others.

In August 2009, PepsiCo made a $7 billion offer to acquire the two largest bottlers of

its products in North America: Pepsi Bottling Group and Pepsi Americas. In 2010 this

acquisition was completed, resulting in the formation of a new wholly owned

subsidiary of PepsiCo, Pepsi Beverages Company. Also in late 2010, the company

made its largest international acquisition when it purchased a majority stake in Wimm-

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Bill-Dann Foods - a Russian food company which produces milk, yogurt, fruit juices

and dairy products.

Competition

The Coca-Cola Company has historically been considered PepsiCo’s primary

competitor in the beverage market, and in December 2005, PepsiCo surpassed The

Coca-Cola Company in market value for the first time in 112 years since both

companies began to compete. In 2009, the Coca-Cola Company held a higher market

share in carbonated soft drink sales within the U.S. In the same year, PepsiCo

maintained a higher share of the U.S. refreshment beverage market, however, reflecting

the differences in product lines between the two companies. As a result of mergers,

acquisitions and partnerships pursued by PepsiCo in the 1990s and 2000s, its business

has shifted to include a broader product base, including foods, snacks and beverages.

The majority of PepsiCo's revenues no longer come from the production and sale of

carbonated soft drinks. Beverages accounted for less than 50 percent of its total revenue

in 2009. In the same year, slightly more than 60 percent of PepsiCo's beverage sales

came from its primary non-carbonated brands, namely Gatorade and Tropicana.

PepsiCo's Frito-Lay and Quaker Oats brands hold a significant share of the U.S. snack

food market, accounting for approximately 39 percent of U.S. snack food sales in 2009.

One of PepsiCo's primary competitors in the snack food market overall is Kraft Foods,

which in the same year held 11 percent of the U.S. snack market share.

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Products and brands

PepsiCo’s product mix as of 2009 (based on worldwide net revenue) consists of 63

percent foods, and 37 percent beverages. On a worldwide basis, the company’s current

products lines include several hundred brands that in 2009 were estimated to have

generated approximately $108 billion in cumulative annual retail sales. The primary

identifier of companies' main brands within the food and beverage industry are those

which generate annual sales exceeding $1 billion, and 19 of PepsiCo's brands met this

description as of 2009: Pepsi-Cola, Mountain Dew, Lay's, Gatorade, Tropicana, 7Up,

Doritos, Lipton Teas, Quaker Foods, Cheetos, Mirinda, Ruffles, Aquafina, Pepsi Max,

Tostitos, Sierra Mist, Fritos, and Walker's.

Snacks Tropicana Health Drink

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Energy Drink Quaker Oats

Aquafina mineral water Lipton tea

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Pepsi 7 up

Mirinda Mountain Dew

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History

The pharmacy of Caleb Bradham, with a Pepsi dispenser, as portrayed in a New Bern

exhibition in the Historical Museum of Bern.

Pepsi was first introduced as "Brad's Drink" in New Bern, North Carolina in 1898 by

Caleb Bradham, who made it at his home where the drink was sold. It was later named

Pepsi Cola, possibly due to the digestive enzyme pepsin and kola nuts used in the

recipe. Bradham sought to create a fountain drink that was delicious and would aid in

digestion and boost energy. In 1903, Bradham moved the bottling of Pepsi-Cola from

his drugstore to a rented warehouse.

That year, Bradham sold 7,968 gallons of syrup. The next year, Pepsi was sold in six-

ounce bottles, and sales increased to 19,848 gallons. In 1909, automobile race pioneer

Barney Oldfield was the first celebrity to endorse Pepsi-Cola, describing as "A bully

drink...refreshing, invigorating, a fine bracer before a race." The advertising theme

"Delicious and Healthful" was then used over the next two decades. In 1926, Pepsi

received its first logo redesign since the original design of 1905. In 1929, the logo was

changed again.

In 1931, at the depth of the Great Depression, the Pepsi-Cola Company entered

bankruptcy - in large part due to financial losses incurred by speculating on wildly

fluctuating sugar prices as a result of World War I. Assets were sold and Roy C.

Megargel bought the Pepsi trademark.

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Eight years later, the company went bankrupt again. Pepsi's assets were then purchased

by Charles Guth, the President of Loft Inc. Loft was a candy manufacturer with retail

stores that contained soda fountains.

He sought to replace Coca-Cola at his stores' fountains after Coke refused to give him a

discount on syrup. Guth then had Loft's chemists reformulate the Pepsi-Cola syrup

formula.

On three separate occasions between 1922 and 1933, the Coca-Cola Company was

offered the opportunity to purchase the Pepsi-Cola company and it declined on each

occasion.

Pepsi-Cola trademarkThe original stylized Pepsi-Cola logo

The second stylized Pepsi-Cola logo

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Niche marketing

1940s advertisement specifically targeting African Americans

Walter Mack was named the new President of Pepsi-Cola and guided the company

through the 1940s. Mack, who supported progressive causes, noticed that the

company's strategy of using advertising for a general audience either ignored African

Americans or used ethnic stereotypes in portraying blacks.

He realized African Americans were an untapped niche market and that Pepsi stood to

gain market share by targeting its advertising directly towards them. To this end, he

hired Hennan Smith, an advertising executive "from the Negro newspaper field to lead

an all-black sales team, which had to be cut due to the onset of World War II. In 1947,

Mack resumed his efforts, hiring Edward F. Boyd to lead a twelve-man team. They

came up with advertising portraying black Americans in a positive light, such as one

with a smiling mother holding a six pack of Pepsi while her son (a young Ron Brown,

who grew up to be Secretary of Commerce) reaches up for one. Another ad campaign,

titled "Leaders in Their Fields", profiled twenty prominent African Americans such as

Nobel Peace Prize winner Ralph Bunche and photographer Gordon Parks.

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Boyd also led a sales team composed entirely of blacks around the country to promote

Pepsi. Racial segregation and Jim Crow laws were still in place throughout much of the

U.S.; Boyd's team faced a great deal of discrimination as a result, from insults by Pepsi

co-workers to threats by the Ku Klux Klan. On the other hand, they were able to use

racism as a selling point, attacking Coke's reluctance to hire blacks and support by the

chairman of Coke for segregationist Governor of Georgia Herman Talmadge. As a

result, Pepsi's market share as compared to Coke's shot up dramatically. After the sales

team visited Chicago, Pepsi's share in the city overtook that of Coke for the first time.

This focus on the market for black people caused some consternation within the

company and among its affiliates. They did not want to seem focused on black

customers for fear white customers would be pushed away. In a meeting at the

Waldorf-Astoria Hotel, Mack tried to assuage the 500 bottlers in attendance by

pandering to them, saying, "We don't want it to become known as a nigger drink. After

Mack left the company in 1950, support for the black sales team faded.

Marketing

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Pepsi logo (1970-87). In 1987, the font was modified slightly to a more rounded

version which was used until 1991.

Old Pepsi can with "rounded" logo version (1987-1991).

Pepsi logo (2003-2008).

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Atlanta beginnings (1886-1892)

Like many people who change history, John Pemberton, an Atlanta pharmacist, was

inspired by simple curiosity. One afternoon, he stirred up a fragrant, caramel-colored

liquid and, when it was done, he carried it a few doors down to Jacobs' Pharmacy.

Here, the mixture was combined with carbonated water and sampled by customers who

all agreed -- this new drink was something special. So Jacobs' Pharmacy put it on sale

for five cents a glass.  

Pemberton's bookkeeper, Frank Robinson, named the mixture Coca-Cola®, and wrote

it out in his distinct script. To this day, Coca-Cola is written the same way. In the first

year, Pemberton sold just 9 glasses. In the first year, Pemberton sold just 9 glasses of

Coca-Cola a day.  

A century later, The Coca-Cola Company has produced more than 10 billion gallons of

syrup. Unfortunately for Pemberton, he died in 1888 without realizing the success of

the beverage he had created.  

Over the course of three years, 1888-1891, Atlanta businessman Asa Griggs Candler

secured rights to the business for a total of about $2,300. Candler would become the

Company's first president, and the first to bring real vision to the business and the

brand.

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Beyond Atlanta (1893-1904)

Asa G. Candler, a natural born salesman, transformed Coca-Cola from an invention

into a business. He knew there were thirsty people out there, and Candler found

brilliant and innovative ways to introduce them to this exciting new refreshment. He

gave away coupons for complimentary first tastes of Coca-Cola, and outfitted

distributing pharmacists with clocks, urns, calendars and apothecary scales bearing the

Coca-Cola brand. People saw Coca-Cola everywhere, and the aggressive promotion

worked. By 1895, Candler had built syrup plants in Chicago, Dallas and Los Angeles.  

Inevitably, the soda's popularity led to a demand for it to be enjoyed in new ways. In

1894, a Mississippi businessman named Joseph Biedenharn became the first to put

Coca-Cola in bottles. He sent 12 of them to Candler, who responded without

enthusiasm. Despite being a brilliant and innovative businessman, he didn't realize then

that the future of Coca-Cola would be with portable, bottled beverages customers could

take anywhere. He still didn't realize it five years later, when, in 1899, two Chattanooga

lawyers, Benjamin F. Thomas and Joseph B. Whitehead, secured exclusive rights from

Candler to bottle and sell the beverage -- for the sum of only one dollar.  

Safe guarding the brand (1905-1918)

Imitation may be the sincerest form of flattery, but The Coca-Cola Company was none

too pleased about the proliferation of copycat beverages taking advantage of its

success. This was a great product, and a great brand. Both needed to be protected.

Advertising focused on the authenticity of Coca-Cola, urging consumers to "Demand

the genuine" and "Accept no substitute."  

The Company also decided to create a distinctive bottle shape to assure people they

were actually getting a real Coca-Cola. The Root Glass Company of Terre Haute,

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Indiana, won a contest to design a bottle that could be recognized in the dark. In 1916,

they began manufacturing the famous contour bottle.

The contour bottle, which remains the signature shape of Coca-Cola today, was chosen

for its attractive appearance, original design and the fact that, even in the dark, you

could identify the genuine article.  

Imitation may be the sincerest form of flattery, but The Coca-Cola Company was none

too pleased about the proliferation of copycat beverages taking advantage of its

success. This was a great product, and a great brand. Both needed to be protected.

Advertising focused on the authenticity of Coca-Cola, urging consumers to "Demand

the genuine" and "Accept no substitute."  

The Company also decided to create a distinctive bottle shape to assure people they

were actually getting a real Coca-Cola. The Root Glass Company of Terre Haute,

Indiana, won a contest to design a bottle that could be recognized in the dark. In 1916,

they began manufacturing the famous contour bottle. The contour bottle, which remains

the signature shape of Coca-Cola today, was chosen for its attractive appearance,

original design and the fact that, even in the dark, you could identify the genuine

article.  

The woodruff legacy (1919-1940)

Perhaps no person had more impact on The Coca-Cola Company than Robert

Woodruff. In 1923, four years after his father Ernest purchased the Company from Asa

Candler, Woodruff became the Company president. While Candler had introduced the

U.S. to Coca-Cola, Woodruff would spend more than 60 years as Company leader

introducing the beverage to the world beyond.

Woodruff was a marketing genius who saw opportunities for expansion everywhere. He

led the expansion of Coca-Cola overseas and in 1928 introduced Coca-Cola to the

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Olympic Games for the first time when Coca-Cola traveled with the U.S. team to the

1928 Amsterdam Olympics.

Woodruff pushed development and distribution of the six-pack, the open top cooler,

and many other innovations that made it easier for people to drink Coca-Cola at home

or away. This new thinking made Coca-Cola not just a huge success, but a big part of

people's lives.

The war and its legacy (1941-1959)

In 1941, America entered World War II. Thousands of men and women were sent

overseas. The country, and Coca-Cola, rallied behind them. Woodruff ordered that

"every man in uniform gets a bottle of Coca-Cola for 5 cents, wherever he is, and

whatever it costs the Company." In 1943, General Dwight D. Eisenhower sent an

urgent cablegram to Coca-Cola, requesting shipment of materials for 10 bottling plants.

During the war, many people enjoyed their first taste of the beverage, and when peace

finally came, the foundations were laid for Coca-Cola to do business overseas.

Woodruff’s vision that Coca-Cola be placed within "arm's reach of desire," was coming

true -- from the mid-1940s until 1960, the number of countries with bottling operations

nearly doubled. Post-war America was alive with optimism and prosperity. Coca-Cola

was part of a fun, carefree American lifestyle, and the imagery of its advertising --

happy couples at the drive-in, carefree moms driving big yellow convertibles --

reflected the spirit of the times.

The world of customer ((1960-1981)

In 1941, America entered World War II. Thousands of men and women were sent

overseas. The country, and Coca-Cola, rallied behind them. Woodruff ordered that

"every man in uniform gets a bottle of Coca-Cola for 5 cents, wherever he is, and

whatever it costs the Company." In 1943, General Dwight D. Eisenhower sent an

urgent cablegram to Coca-Cola, requesting shipment of materials for 10 bottling plants.

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During the war, many people enjoyed their first taste of the beverage, and when peace

finally came, the foundations were laid for Coca-Cola to do business overseas.  

Woodruff’s vision that Coca-Cola be placed within "arm's reach of desire," was coming

true -- from the mid-1940s until 1960, the number of countries with bottling operations

nearly doubled. Post-war America was alive with optimism and prosperity. Coca-Cola

was part of a fun, carefree American lifestyle, and the imagery of its advertising --

happy couples at the drive-in, carefree moms driving big yellow convertibles --

reflected the spirit of the times.

Diet coke and new coke (1982-1989)

The 1980s -- the era of legwarmers, headbands and the fitness craze, and a time of

much change and innovation at The Coca-Cola Company. In 1981, Roberto C.

Goizueta became chairman of The Board of Directors and CEO of The Coca-Cola

Company. Goizueta, who fled Castro's Cuba in 1961, completely overhauled the

Company with a strategy he called "intelligent risk taking."  

Among his bold moves was organizing the numerous U.S. bottling operations into a

new public company, Coca-Cola Enterprises Inc. He also led the introduction of diet

Coke®, the very first extension of the Coca-Cola trademark; within two years, it had

become the top low-calorie drink in the world, second in success only to Coca-Cola.

One of Goizueta's other initiatives, in 1985, was the release of a new taste for Coca-

Cola, the first change in formulation in 99 years. In taste tests, people loved the new

formula, commonly called “new Coke.” In the real world, they had a deep emotional

attachment to the original, and they begged and pleaded to get it back. Critics called it

the biggest marketing blunder ever. But the Company listened, and the original formula

was returned to the market as Coca-Cola classic®, and the product began to increase its

lead over the competition -- a lead that continues to this day.

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New markets and brands (1990-1999)

The 1990s were a time of continued growth for The Coca-Cola Company. The

Company's long association with sports was strengthened during this decade, with

ongoing support of the Olympic Games, FIFA World Cup™ football (soccer), Rugby

World Cup and the National Basketball Association. Coca-Cola classic became the

Official Soft Drink of NASCAR racing, connecting the brand with one of the world's

fastest growing and most popular spectator sports.  

And 1993 saw the introduction of the popular "Always Coca-Cola" advertising

campaign, and the world met the lovable Coca-Cola Polar Bear for the first time. New

markets opened up as Coca-Cola products were sold in East Germany in 1990 and

returned to India in 1993.  

New beverages joined the Company's line-up, including PowerAde sports drink, Qoo

children's fruit drink and Dasani bottled water.

Coca cola now (2000- now)

In 1886, Coca-Cola® brought refreshment to patrons of a small Atlanta pharmacy.

Now well into its second century, the Company's goal is to provide magic every time

someone drinks one of its more than 500 brands. Coca-Cola has fans from Boston to

Budapest to Bahrain, drinking brands such as Ambasa, Vegitabeta and Frescolita. In the

remotest comers of the globe, you can still find Coca-Cola.

Coca-Cola is committed to local markets, paying attention to what people from

different cultures and backgrounds like to drink, and where and how they want to drink

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it. With its bottling partners, the Company reaches out to the local communities it

serves, believing that Coca-Cola exists to benefit and refresh everyone it touches.

Products and Brands

Maaza Limca Kinley soda

Minute maid Kinley mineral water Sprite

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Coca cola Thums up Fanta

Thums Up is a best-selling brand of cola in India where its bold, red thumbs up logo is

common. It is similar in flavor to other colas but has a taste reminiscent of betel nut.

Introduced in 1977 to offset the expulsion of The Coca-Cola Company and other

foreign companies from India, Thums Up, Limca, and Campa Cola gained nationwide

acceptance. The brand was bought out by Coca-Cola who re-launched it in order to

compete against Pepsi.

Background

During the late 1970s, the American cola giant Coca-Cola abandoned operations in

India rather than make a forced sale of 60% of their equity to an Indian company.

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Following this, the Parle brothers, Ramesh Chauhan and Prakash Chauhan, along with

then CEO Bhanu Vakil, launched Thums Up as their flagship drink, adding to their

portfolio of older brands Limca (lime flavor) and Gold Spot (orange flavor). Thums Up

was basically a cola drink, but the company never claimed it as such. The formula was

just as closely guarded as the famous Coke formula. During the same time, the owners

of Coca-Cola’s bottling plant, Pure Drinks Ltd., launched Campa Cola and Campa

Orange, both of which had a higher dose of carbon dioxide.

Typical bottle of Thums Up

The Thums Up logo was a red 'thumbs up' hand gesture with a slanted white sans-serif

typeface. This would later be modified by Coca-Cola with blue strokes and a more

modern-looking typeface. This was mainly done to reduce the dominant red color in

their signage. The picture shows the Thums Up Mountain or, Thums Up pahaad (in

Hindi), Manmad hills which has a natural top like the thums up logo and is a popular

sight from trains. Its famous caption until the early 1980s was, “Happy days are here

again”, coined by then famous copywriter Vasant Kumar, whose father was spiritual

philosopher U. G. Krishnamurti. The caption became "I want My Thunder." It is

currently "Taste the thunder!"

Thums Up enjoyed a near monopoly with a much stronger market share often

overshadowing its other rivals like Campa cola, Double seven and Dukes, but there

were many small regional players who had their own market. It even withstood liquor

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giant United Breweries Group (makers of Kingfisher Beer) Mcdowell's Crush, which

was another Cola drink, and Double Cola.

It was one of the major advertisers throughout the 1980s. In the mid-80’s it had a brief

threat from a newcomer Double Cola which suddenly disappeared within a few years.

In 1990, when the Indian government opened the market to multinationals, Pepsi was

the first to come in. Thums Up went up against the international giant for an intense

onslaught with neither side giving any quarter. With Pepsi roping in major Indian

movie stars like Juhi Chawla, to thwart the Indian brand, Thums Up increased its

spending on Cricket sponsorship. Then the capacity went from 250ml to 300ml, aptly

named Maha Cola. This nickname gained popularity in smaller towns where people

would ask for "Maha Cola" instead of Thums Up. The consumers were divided where

some felt Pepsi’s mild taste was rather bland.

In 1993 Coca-Cola re-entered India after a prolonged absence from 1977 to 1993. But

Coca-Cola’s entry made things even more complicated and the fight became a three-

way battle. That same year, in a move that baffled many, Parle sold out to Coke for a

meagre US$ 60 million (considering the market share it had). Some assumed Parle had

lost the appetite for a fight against the two largest cola brands; others surmised that the

international brands seemingly endless cash reserves psyched-out Parle. Either way, it

was now Coca-Cola’s, and Coke has a habit of killing brands in its portfolio that might

overshadow it. Coca-Cola soon introduced its cola in cans which was all the rage in

India, with Thums Up introduced alongside, albeit in minuscule numbers. Later Coca-

Cola started pulling out the Thums Up brand which at that time still had more than 30%

market share.

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Thums Up storms ahead

Thums Up went from being the only cola in the cantina to facing competition from both

Coca-Cola and Pepsi. Twenty-six years later it’s still a top cola in India and is one of

the strongest brands in the country across categories. The brand name’s positive

associations of victory, achievement and celebration are apparently merited as it

continues to do well despite a challenging landscape.

Thums Up’s first competition came in the form of Campa Cola. There were allegations

of aggressive exchanges between the two brands at street level but Thums Up (owned

by Parle at the time) apparently won the battle both on the ground and in the

consumer’s mind. Campa Cola discontinued in 2000. For a short while Thums Up’s

strong taste enjoyed success across the country with scarcely any competition; the

brand reigned supreme in the cola market (even though it did not refer to itself as a

cola). In 1990, the Indian government opened the market to international brands, and

Pepsi was the first in. Thums Up went up against the international giant for an intense

onslaught with neither side giving any quarter.

The entry of Coke, in 1993, made things even more complicated and the fight became a

three-way battle. That same year, in a move that baffled many, Parle sold out to Coke

for a mere US$ 60 million. Some assumed Parle had lost the appetite for a fight against

the two largest cola brands; others surmised that the international brands seemingly

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endless cash reserves psyched-out Parle. Either way, it was now Coca-Cola’s, and Coke

has a habit of killing brands in its portfolio that might overshadow it.

Coca-Cola apparently did try to kill Thums Up, but soon realized that Pepsi would

benefit more than Coke if Thums Up was withdrawn from the market. Instead, Coke

decided to use Thums Up to attack Pepsi. Thums Up had the equity to take on Pepsi

and soon an all out war was on. In 2001 Thums Up took the battle to Pepsi by openly

challenging it to a blind taste test. The aggressive move was intimidating and

unexpected, turning the tables on Pepsi, which was now at the receiving end of a taste

challenge. The results from the challenge were in dispute from both ends but the battle

of the mind was won by Thums Up, whose advertising overshadowed the question of

accuracy. Still, despite its strong equity overall, the brand was losing its popularity

among the core cola drinking age group of 12 to 29 year olds.

The brand was positioned as a “manly” drink, drawing on its strong taste qualities.

Known to be a strong drink with more power packed into it than other colas, older

consumers mix it with rum for a “rum and Thums Up.”

The brand launched a campaign that focused on the strength of the drink, hoping that

the depiction as an “adult” drink would appeal to young consumers. “Grow up to

Thums Up” was a successful campaign. The brand’s market share and equity soared

northwards. The brand was unshakeable and Coca-Cola’s declaration that Thums Up

was India’s premier cola brand in terms of market share did not surprise many.

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Other campaigns from Thums Up’s build on the “strength” of its cola and build

associations as a macho drink. Ads showing the Thums Up man riding through the

desert in search of a cantina that sells Thums Up rather than drink another cola stick in

the minds of many Indians and caught the imagination of youngsters who want to be

seen as men.

.

CHAPTER 3

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THEORETICAL

FRAMEWORK

MARKETING MIX

Marketing mix was coined in 1953 by Neil Borden in his American Marketing

Association presidential address. However, this was actually a reformulation of an

earlier idea by his associate, James Culliton, who in 1948 described the role of the

marketing manager as a "mixer of ingredients", who sometimes follows recipes

prepared by others, sometimes prepares his own recipe as he goes along, sometimes

adapts a recipe from immediately available ingredients, and at other times invents new

ingredients no one else has tried. A prominent marketer, E. Jerome McCarthy, proposed

a Four P classification in 1960, which has seen wide use.

Product

Pepsi is a carbonated soft drink that is produced and manufactured by PepsiCo.

Invented in 1893 and introduced as "Brad's Drink", it was later renamed as Pepsi-Cola

on June 16, 1903.

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Thums Up is a best-selling brand of cola in India, where its bold, red thumbs up logo is

common. It is similar in flavor to other colas but has a taste reminiscent of betel nut.

Introduced in 1977 to offset the expulsion of The Coca-Cola Company and other

foreign companies from India, Thums Up, Limca, and Campa Cola gained nationwide

acceptance. The brand was bought out by Coca-Cola who re-launched it in order to

compete against Pepsi.

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Price

In economics and business, the price is the assigned numerical monetary value of a

good, service or asset. Price is also central to marketing where it is one of the four

variables in the marketing mix that business people use to develop a marketing plan.

Pricing is a big part of the marketing mix. Choosing the right price and the right pricing

strategy is crucial to the marketing process. The price of the product is not something

that is fixed. On the other hand the price of the product depends on many other factors.

Some times the price of the product has got nothing to do with the actual product itself.

The price may act as a way to attract target customers.

Pepsi

Pepsi again decides it price on the basis of competition. The best think about the

company Pepsi is that it is very flexible and it can come down with the price very

quickly. The company is renowned to bring the price down even up to half if needed.

But this risk taking attitude has also earned Pepsi losses. Though lowering the price

would attract the customers but it would not help them cover up the cost incurred in

production hence causing them losses. This was the situation earlier but now Pepsi is a

full-fledged and growing company. It has covered all its losses and is now growing at a

rapid rate.

Thums up

Earlier the price of thums up was costly i.e. it was decided on the cost which was spent

on making the product plus the profit and other expenses. But after the emergence of

other companies especially the likes of Pepsi, thums up started with a pricing strategy

based on the basis of competition. Nowadays more expenses are spent on advertising

soft-drink companies rather than on manufacturing.

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Place

Place is a term that has a variety of meanings in a dictionary sense, but which is

principally used in a geographic sense as a noun to denote location, though in a sense of

a location identified with that which is located there.

In marketing, place refers to one of the 4 P's, defined as "the market place". It can mean

a geographic location, an industry, a group of people (a segment) to whom a company

wants to sell its products or services, such as young professional women (e.g. for

selling cosmetics) or middle-aged family men (e.g. for selling family cars).

Pepsi again has spread worldwide. Pepsi when entering a new market does not go in

alone but it looks for partners and mergers. Till now Pepsi has collaborated with

companies like Quaker Oats, Frito-lays, Lipton, Starbucks, etc.

Pepsi like Coke has spread all over the world. It is because of this worldwide spread

that now it is coming up with Advertisements which can be broadcasted in the different

nations in the world. The recent example with would be the Pepsi advertisements

having David Beckham as it brand ambassador.

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Thums up has its market around the entire world. Its very popular in India.

Promotion

Promotion is one of the four aspects of marketing. Promotion comprises four

subcategories:

1. Advertising

2. Personal selling

3. Sales promotion

4. Publicity and public relations

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The specification of these four variables creates a promotional mix or promotional plan.

A promotional mix specifies how much attention to pay to each of the four

subcategories, and how much money to budget for each. A promotional plan can have a

wide range of objectives, including: sales increases, new product acceptance, creation

of brand equity, positioning, competitive retaliations, or creation of a corporate image.

Pepsi has brand ambassadors such as Sachin Tendulkar, Shah Rukh Khan and Kareena

Kapoor etc. thums up has brand ambassadors such as Akshay Kumar, Salman Khan and

Cheeranjivi etc.

SEGMENTATION OF MARKET

A market segment consists of a group of customers who share a similar set of needs and

wants. Rather than creating the segment the marketer’s task is to identify them and

decide which one to target. Leading soft drinks thums up and Pepsi follow the similar

segmentation strategy for target marketing.

Mass Marketing

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However in some of its popular product both the companies follow the mass marketing

strategy. In this type of segmentation, companies target the whole market and not any

particular segment of the population.

Target Marketing

Although the targeted group of the company is the whole population, they want to earn

more revenue from a segment than their other revenue generator sources. For this, they

recognize following bases for segmentation

1. Geographical Segmentation

Region- Both companies treat hot countries such as Asia, Middle East and

African differently in comparison to cold countries. As in tropical countries,

consumption of soft drinks is 70% in summer and 30% in winter season while

in EUROPEAN countries its consumption is almost uniform. So soft drink

companies prefer different marketing strategies in Asian and European

countries. In countries like India and Pakistan, these companies invest huge

resources in the season of summers, and their target area is domestic users,

restaurants, school and college canteens and even rural chaupals.

While in winter season their target is mainly party users and high-income

group consumers.

Rural Vs. Urban Market- Population of Rural sector is more conscious more

about the price whereas Population of Urban sector is more conscious about the

quality and brand name of the product. So thums up and Pepsi in Year 2002

bring the 200 ml bottle at Rs.5 specifically targeted at the rural sector so that

soft drink can take place of the local drink like lemon, sugarcane juice and Tea

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etc. Both the companies Coca-Cola and PepsiCo have adopted different

marketing strategy for rural and urban areas.

2. Demographic Segmentation

Age- India is considered to be a young country i.e. average age of Indian

population is less 38 years. Thus targeting young generation can be a beneficial

marketing strategy for soft drink companies. In fact this is the case, all the major

brands like Pepsi, and thumps up, mainly target younger generation in India. In

Europe, as average population is older than Asian countries, Coca cola targeted

the older generation of the population. Similarly in USA, Pepsi targeted the

generation X (younger generation) as they comprises majority of the population

and they positioned Pepsi in the mind of youth that Pepsi is for the youth

Gender- Gender based segmentation is very important. As taste of male and

female is different. Let’s take the example of coca cola, thumps up is promoted

as masculine soft drinks while coca cola and Fanta are having light taste and

mainly targeted for loving birds, ladies, and children. Same example is available

in Pepsi, mirinda’ orange flavor is popular among ladies, girls, and children.

PRODUCT MIX

A product is anything that can be offered to a market to satisfy a want or need,

including physical goods, services, experiences, events, persons, places, properties,

organizations, information, and ideas.

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If we take the example of soft drink industry, then these companies not only sell soft

drinks in physical forms, but brands. A brand comprises of everything from beverages

to experiences. However in this chapter we shall try to understand and analyze the

product line and product classification of Pepsi and coca cola.

Product Life Cycle

To be able to market its product properly, a business must be aware of the product life

cycle of its product. The standard product life cycle tends to have five phases:

Development

Introduction

Growth

Maturity

Decline

In America carbonated soft drink market is currently in the maturity stage, which is

evidenced primarily by the fact that they have a large loyal group of stable customers

but in the developing countries like carbonated soft drinks are in growth stage, which is

evidenced by looking at the per head consumption of 6 bottles in India is lagging

behind the us astounding 700 bottles per head consumption.

BRANDING

Brand is defined as a name, term, symbol, or design, or a combination of them,

intended to identify the goods or services of one seller or group of sellers and to

differentiate them from those of competitors. A brand is thus a product or service that

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adds dimension that differentiate it in some way, from other products or services

designed to satisfy the same need. These differences may be functional, rational, or

tangible, related to product performance of the brand. They may also be more symbolic,

emotional or intangible related to what brands represent.

1. Brand Name

A brand is the identity of a specific product, service, or business. A brand can take

many forms, including a name, sign, symbol, color combination or slogan. The word

brand began simply as a way to tell one person's cattle from another by means of a hot

iron stamp. A legally protected brand name is called a trademark. The word brand has

continued to evolve to encompass identity - it affects the personality of a product,

company or service.

2. Packaging

Thums up and Pepsi are much innovated in the packing of their product. These

products were introduced with different concept of packing. The Airtight bottle concept

is given by the Coca cola, which has revolutionized the bottling and packaging

industry. These Cola giant also introduced the different size of returnable glass bottle

like 200ml, 300ml and non- returnable plastic bottle like 600 ml, 1.5 litre and 2 litres of

thums up according to the need of the targeted customer. They also pioneer in bring

Cans and Frosted bottles in the market. Packing helps the brand to capture the desire

target like 600ml packing is launched, as “express pack” so this is targeted to touring

population and this segment needs non-returnable bottles.

3. Labeling

Pepsi has associated it self to rich deep blue colour as blue colour represents eternal

youthness and openness that is appropriately consistence with the youth segment they

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are targeting. Pepsi under the name of Project Globe Campaign spent 637 million

dollars over 5 years, to introduce the new rich deep blue colouring. So labeling helps

the brand to get attach with the targeted segment.

Attributes For Strongest Brand Share

According to a study done by scholars of HARVARD BUSINESS REVIEW the world’s strongest brands share following 10 attributes:

1. The brand excels at delivering the benefits consumers truly desire.

2. The brand stays relevant

3. The pricing strategy is based on consumer perceptions of value.

4. The brand is properly positioned.

5. The brand is consistent.

6. The brand portfolio and hierarchy make sense.

7. The brand makes use of and coordinates a full repertoire of marketing activities to

build equity.

8. The brand’s managers understand what the brand means to consumers.

9. The brand is given proper sustained support.

10. The company monitors sources of brand equity

Thumps Up Versus Pepsi

The latest row in the ongoing battle. The latest Coke’s strategy is to engage Pepsi in

war with Thumps up and playing safe with Coca-Cola. The latest ads of thumps up

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which features Salman Khan tries to make fun of Pepsi and its sweeter taste. Pepsi also

has retaliated by its latest ad of Lehar Soda, which features a look alike of Salman

Khan at these data we can that for these two giant a lot of potential is there in

developing market which is now also untapped.

SWOT ANALYSIS

Strengths

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Pepsi and Thums up has been a complex part of world culture for a very long time.

The products image is loaded with over-romanticizing and fun, this is an image many

people have taken deeply to heart. Pepsi and Thums up are the extremely recognizable

brand, which is the greatest strength of them. Additionally there Bottling system is one

of their greatest strengths. This allows them to the conduct business on a global scale

while at the same time maintain a local approach. The bottling companies are locally

owned and operated by independent business people who are authorized to sell product

of these cola giant. PepsiCo and Coca cola are having the largest distribution network

in the world, which is also there one of the greatest strength.

Weaknesses

Weaknesses for any business need to be both minimized and monitored in order to

effectively achieve productivity and efficiency in their business activities. Although the

international sales are increases but there is getting saturation evident through the

stability in cola drink in USA market and moreover all over the world the customer

preference for cola drink is shifting towards the healthy drink is taking place. Being

addictive of cola drink is also a health problem, because drinking of carbonated soft

drink daily has an effect on your body also.

Opportunities

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Brand recognition is the significant factor affecting Pepsi and Thums up competitive

position. Pepsi and Thums up brand are known well throughout 94% of world today.

As in developing countries the per head consumption of cola drink is very less which

evident from taking example of India. In India per head consumption is only 6 bottles

as compare to 700 bottles in USA and in Indian market only 5% of the beverage comes

under packaging. So looking at these data we can that for these two giant a lot of

potential is there in developing market which is now also untapped.

Threats

Currently, the threat of new viable competitors in the carbonated soft drink industry is

not very substantial. The threat of Substitute, however, is a very real threat. The soft

drink industry is very strong, but consumers are not necessarily married to it. Possible

substitutes that continuously put pressure on both Pepsi and Coke include tea, coffee,

juice, milk and hot chocolate. Even through the Coca cola and Pepsi control nearly 40%

of the entire beverage market, the changing health consciousness of the market could

have a serious affect. Of course, both have already diversified into these markets, but

still this Substitute will remain threat to them. Consumer buying power is also

represents a key threat to the Pepsi and Coke.

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CHAPTER 4

RESEARCH

METHODOLOGY

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Objectives of the Study

To compare the products Pepsi (PepsiCo) and Thums up (coco cola) through consumer

survey.

The comparison study is often used in the business world as a means of identifying how

a given good or service compares to similar products offered by a competitor. In going

through the process of comparing each facet of the two items, it is often possible to

identify areas where both products perform at a similar rate of efficiency. At the same

time, comparative studies will often yield insights about areas where one product excels

in comparison with the other. Utilizing the results of the comparison study, it is

possible to develop some powerful tools that can be incorporated into corporate

marketing strategies and sales campaigns.

Type of research design: Research designs is concerned with turning the research

question into a testing project. The best design depends on our research questions.

Descriptive research design will be used as it is not possible to measure large no. of

samples. In this method the samples are observed in a natural and unchanged natural

environment.

Collection of data: In this study primary data is been taken. Primary data have been

collected through surveys. Personal interview technique has been used for conducting

the survey. Data collection has been done through the use of structured questionnaire.

Data collection techniques:

Sampling size - The sample size of a statistical sample is the number of observations

that constitute it. The sampling size for comparative study of Pepsi and Thums up is

100. 10 pilot surveys were also done.

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Sampling Method - Convenient Sampling method was adopted for this study

Convenience sampling is a non-probability sampling technique where subjects are

selected because of their convenient accessibility and proximity to the researcher.

Sampling frame - In statistics, a sampling frame is the source material or device

from which a sample is drawn. It is a list of all those within a population who can be

sampled, and may include individuals, households or institutions. To compare the

products i.e. Pepsi and thums up the sampling frame was Surat city, within the Surat

city particularly in adajan area the survey was conducted to compare the two products

Sampling element - The sampling element for the study is the target audience i.e.

the people who consume soft drinks specifically Pepsi and thums up irrespective of age.

Survey tool- The survey tool used for comparing the two products is questionnaire. A

questionnaire is a research instrument consisting of a series of questions and other

prompts for the purpose of gathering information from respondents.

The questionnaire was prepared and the Questionnaire consisted of both open and close

ended questions to elicit responses for the following areas:

i. Location.

ii. Age.

iii. Occupation.

iv. Monthly Income.

v. Amount spent on purchase of soft drinks

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Analysis of data: The complete analysis is done through Pie charts which display

each value to total, bar graphs. A bar chart or bar graph is a chart with rectangular bars

with lengths proportional to the values that they represent.

Limitations of the Study:

Time was not sufficient to conduct detailed study.

Limited area was there to conduct the study.

Respondent are very less in sample size to draw the conclusion.

Some of the respondents were not willing to answer.

For few proper response the analysis was difficult which are as follows:

i. Chances of Switching

ii. Reason for Switching.

iii. Monthly Income.

iv. Comparative questions

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CHAPTER 5

ANALYSIS AND

FINDINGS

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ANALYSIS

1) How often do you take carbonated drinks?

Table 1

Fig 1: Consumption of carbonated drinks

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Time span No. of respondentsDaily 14Fortnight 21Weekly 31Once in month 34

Comments: After the survey it was found that most of the people prefer taking

carbonated drinks once in a month followed by taking it weekly then fortnight and

finally few go for taking the carbonated drinks daily.

2) Which cold drink is preferred mostly by you?

Table 2

Fig 2: Cold drink preferred by respondents

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Cold drinks No. of respondents

Pepsi 35

Thums up 27

Both 23

Others 15

Comments: Out of 100 respondents 35 people preferred Pepsi followed by 27

preferring thums up then 23 of them using both the drinks simultaneously and there

were 15 such people who prefer other drinks such as Fanta, 7 up, Slice, Maaza etc.

3) Preference given to various criteria while selecting the cold

drink.

Pepsi

Table 3

Taste Availability Brand Image Advertisement

Rank 1 20 2 7 6

Rank 2 5 6 21 4

Rank 3 6 20 6 10

Rank 4 4 7 1 15

Fig 3: Ranking according to the preferences of the respondents

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Comments: While selecting the cold drink like Pepsi respondents give there first

preference to brand image followed by taste, availability and advertisement.

Thums up

Table 4

Taste Availability Brand Image Advertisement

Rank 1 18 3 2 3

Rank 2 4 10 8 6

Rank 3 3 9 8 7

Rank 4 2 5 9 11

Fig 4: Ranking according to the preferences of the respondents

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Comments: After doing the survey it was found that the respondents who drink

thums up give more preference to taste and all other criteria’s are of secondary

importance.

Both

Table 5

Taste Availability Brand Image Advertisement

Rank 1 12 3 3 4

Rank 2 3 5 10 5

Rank 3 5 4 6 7

Rank 4 4 11 4 7

Fig 5: Ranking according to the preferences of the respondents

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Comments: After the survey it was found that respondents who take both the drinks

i.e. Pepsi and thums up give more importance to taste followed by advertisement,

availability lastly brand image.

4) Which cold drink is preferred mostly in the friend circle?

Table 6

Fig 6: Cold drink preferred in the friend circle of the respondents

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Cold drink preferred in friend circle

No. of respondents

Pepsi 31Thums up 34Both 35

Comments: After the survey it was found that the cold drink preferred in the friend

circle of the respondent is some what both the drinks i.e. Pepsi and thums up followed

by thums up and then Pepsi.

5) How much is your consumption of cold drinks in a month?

Table 7

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Consumption Pepsi Thums up Both300ml- 600ml 15 11 6600ml- 1.2ltr 6 6 21.2ltr- 2ltr 8 6 132ltr & above 6 4 2

Fig 7: Consumption of cold drinks in a month by respondents

Comments: After the survey it was found that the people who consume Pepsi

generally take 300ml- 600ml of cold drinks in a month followed by 1.2ltr – 2ltrs of cold

drink in a month. The one who consume thums up even they consume 300ml- 600ml of

cold drink in a month. It was found that the respondents who consume both the drink

consume around 1.2ltr- 2ltrs in a month.

6) During any occasion which cold drink is preferred by you

mostly?

Table 8

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Cold drink preferred at occasions

No. of respondents

Pepsi 32Thums up 28Both 30Others 10

Fig 8: Cold drink preferred in different occasions

Comments: With the survey it was found that Pepsi is preferred by the respondents

at any occasion whether party or any festival followed by thums up even there are

people who prefer both these drinks at any occasion. Some also prefer other drinks at

different occasion such as Slice, Maaza, and Sprite etc.

7) Which packaging of cold drinks you prefer mostly? Table 9

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Packing No. of respondents300ml 27600ml 301.2ltr 182ltr 25

Fig 9: Packing of cold rinks preferred by respondents

Comments: Respondents generally prefer 600 ml packaging for drinking the cold

drinks followed by the 300 ml bottles then 2ltrs bottles and finally 1.2ltrs.

8) Do promotional schemes affect the choice of cold drink?

Table 10

Pepsi Thums up BothDefinitely yes 10 6 5Probably yes 10 9 10Not sure 7 1 4Probably no 4 8 3Definitely no 4 3 1

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Fig 10: Influence of promotional schemes on choice of soft drinks

Comments: Through the survey it was found that most of the respondents who

consume Pepsi feel that promotional schemes affect the choice of selecting the cold

drinks where as the one who consume thums up were not sure of the statement and the

one who go for both the drinks said that it may probably affect towards the choice.

9) Does advertisement influence you to take cold drinks?

Table 11Pepsi Thums up Both

Definitely yes 6 4 3Probably yes 10 11 12Not sure 4 5 4Probably no 9 4 1Definitely no 6 3 3

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Fig 11: Influence of advertisements on choice of soft drinks

Comments: Through the survey it was found that most of the respondents who

consume Pepsi feel that advertisement probably affect the choice of cold drinks

whereas the one who consume thums up even they feel the same and also the one who

consume both drinks i.e. Pepsi and thums up.

10) Does brand endorsement influence you to take cold drinks?

Table 12

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Pepsi Thums up BothDefinitely yes 8 5 6Probably yes 10 8 9Not sure 5 3 1Probably no 4 5 3Definitely no 8 6 4

Fig 12: Influence of brand endorsements on choice of soft drinks

Comments: Through the survey it was found that most of the respondents who

consume these brands feel that brand endorsement may probably affect the choice of

selecting the cold drink.

11) How likely you going to use the same cold drink in future?

Table 13

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Pepsi Thums up BothDefinitely yes 5 9 9Probably yes 18 10 8Not sure 10 6 3Probably no 1 2 3Definitely no 1 0 0

Fig 13: Chances of existing cold drink brand to be used in future by the respondents

Comments: Through the survey it was found that most of the respondents who

consume Pepsi will definitely go for Pepsi in future. The one who consume thums up

will probably consume the same drink in future.

12) Would you like to recommend your favorite cold drink brand to others?

Table 14

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Pepsi Thums up BothYes 23 19 18No 12 8 5

Fig 14: Recommendation of favorite cold drinks to others

Comments: Through the survey it was found that most of the respondents will

recommend the brand they consume to others.

13) Rating of the attributes of cold drink on basis of satisfaction

Pepsi

Table 15

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Taste Brand image Availability Advertisement QualityPoor 1 2 0 0 3Average 7 5 3 4 3Fairly good 9 9 6 6 7Very good 12 11 15 15 12Excellent 6 8 11 10 10

Fig 15: Rating of the attributes for Pepsi

Comments: After the survey it was found that the respondents who consume Pepsi

find the advertisements are fairly good as compared to the other attributes.

Thums up

Table 16

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Taste Brand image Availability Advertisement QualityPoor 0 0 0 1 0Average 7 0 3 3 5Fairly good 8 12 8 5 8Very good 8 13 12 10 9Excellent 4 2 4 8 5

Fig 16: Rating of the attributes for Thums up

Comments: Through the survey it was found that people consuming thums up find

the brand image good as compared the to the other attributes as thums up belongs to the

coca cola company.

Both

Table 17

Taste Brand image Availability Advertisement Quality

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Poor 0 1 0 0 0Average 5 2 1 1 3Fairly good 4 6 4 5 7Very good 9 11 12 8 6Excellent 5 3 6 9 7

Fig 17: Rating of the attributes for Thums up and Pepsi both

Comments: Through the survey it was found that people consuming both the drinks

simultaneously find the availability of the cold drinks fairly good.

FINDINGS

1. People prefer drinking cold rinks once in a month, followed by drinking it weekly

then fortnight and finally there were some who go for taking it daily. People who

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take cold drinks once in a month said that they don’t find cold drinks as a healthy

product.

2. After the analysis it was found that most the people take Pepsi, followed by thums

up and there were many who go for both the drinks. With the survey it was found

that Pepsi was much popular among the respondents.

3. While selecting Pepsi respondents said that they look for the brand image and then

other criteria’s like the taste, availability, advertisement. The respondents who drink

thums up give more preference to taste and all other criteria don’t matter to them.

Respondents who take both the drinks i.e. Pepsi and thums up give more

importance to taste followed by advertisement, brand image lastly availability. By

overall survey it can be conclude that mostly taste is given the first preference.

4. The cold drink which is preferred the most in the friend circle of the respondents

was both the brands i.e. Pepsi and Thums up. There was no any particular brand as

such of choice.

5. During any occasion the respondents prefer Pepsi whether it is any festival or party,

Followed by thums up which is preferred. They say that the brand Pepsi is so

popular that it’s on the mind while they purchase the cold drinks.

6. People generally prefer 600ml of bottle as the packaging of cold drinks they find it

enough to consume and also easy to carry and handle, followed by 300ml bottle.

Generally 300ml bottle is preferred by the people who find take cold drinks once in

a month.

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7. People who consume Pepsi generally consume 300ml- 600ml amount of drink in a

month whereas who prefer thums up mostly also consume 300ml- 600ml amount of

drink in a month. The one who prefer both the drinks consume 1.2.ltrs-2ltrs of cold

drink.

8. the one who prefer Pepsi say that advertisements influence the choice of selecting

the cold drink whereas the one who prefer thums up were not sure of that

advertisement influences the choice or not. And people who consume both the

drinks believe that advertisements influence the choice.

9. Through the survey it was found that most of the respondents who consume Pepsi

feel that advertisement probably affect the choice of cold drinks whereas the one

who consume thums up even they feel the same and also the one who consume both

drinks i.e. Pepsi and thums up.

10. Through the survey it was found that most of the respondents who consume these

brands feel that brand endorsement may probably affect the choice of selecting the

cold drink.

11. Through the survey it was found that most of the respondents who consume Pepsi

will definitely go for Pepsi in future. The one who consume thums up will probably

consume the same drink in future.

12. Through the survey it was found that most of the respondents will recommend the

brand they consume to others.

13. Through the survey it was found that most of the respondents will recommend the

brand they consume to others.

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14. Through the survey it was found that people consuming thums up find the brand

image good as compared the to the other attributes as thums up belongs to the coca

cola company.

15. Through the survey it was found that people consuming both the drinks

simultaneously find the availability of the cold drinks fairly good.

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CHAPTER 6

CONCLUSION AND

RECOMMENDATION

CONCLUSION

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After the survey I would like to conclude that people generally drink less carbonated

drinks at large time span as they don’t find these carbonated drinks healthy but on the

same time there is no particular age group for the preference of these cold drinks. With

the survey I came to know that Pepsi is the brand which is preferred the most as

compared to Thums up. While selecting Pepsi people go for its brand image whereas

for Thums up they go for taste. In general people think that advertisements do influence

in making the choice of there favorite cold drink. The one who prefer both the brands

individually promotional schemes changes the choice of selecting the drink. The one

prefer Pepsi will definitely consume Pepsi in future but the one who consume Thums

up may or may not go for the same brand in future. The respondents said that they will

recommend their favorite brand to others. In all with the survey I found that Pepsi is

most popular product as compared to Thums up.

RECOMMENDATIONS

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1. Pepsi, the choice of Generation next is not providing the first choice of young

generation. The target market is youth and the taste is not in relation with the taste

of target market (Pepsi is too sweet) A young generation wants something strong in

cold drinks & thus prefers Thums up. Pepsi should come out with some extra strong

taste to catch up maximum young generation & to become exactly Generation Next

drink.

2. Produce a range of Healthy, i.e. Sugar free or diet Alternatives.

3. People prefer thums up for its taste but the advertisements are not found appealing

so the advertisements should be made entertaining that they can penetrate in the

market. As it is in the case of Pepsi with huge brand endorsements.

4. Thums up belonging to such a company coca cola, should try bringing out some

change in the logo design and its colour and should keep on revising it.

5. Thums up should associate itself with celebrities which can help people influencing

them to drink it.

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BIBLIOGRAPHY

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Philip Kotler, Kelvin Lane Keller, Abraham Koshay and Mithileshwar Jha,

“MARKETING MANAGEMENT – A SOUTH ASIAN PERSPECTIVE,”

13TH Edition PEARSON Prentice Hall

G.C Beri, “Marketing research” 4th edition, Tata McGraw hill

WEBSITES:

o www.pepsi.com

o www.pepsico.com

o www.pepsico.com/Brands.html

o www.thecoca-colacompany.com/brands/brandlist.html

o http://www.thecoca-colacompany.com/ourcompany/index.html

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ANNEXURE

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Respected sir/madam

                      I Pragya Pandey the student of Navnirman Institute Of Management

(NIM) college conducting survey  for winter project as requirement of partial

fulfillment of semester (vi)  on “COMPARISON OF PEPSI & THUMS UP”   I

assure that the information given by you are strictly used for academic purpose only.

I request you to help me in gathering required information. I will be greatly thankful for

your kind co-operation.

Note: Use tick mark ( ) to answer your question.

1. How often do you take carbonated drinks?Daily fortnight Weekly once in a month

2. Which cold drink do you prefer the most?

Pepsi Thums up

Both Others specify

3. On what criteria do you select the drink of your choice? Rank them according to your preference. (Rank 1 to 4)

Taste __ Availability __

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Brand image __

Advertisement __

4. Which cold drink is preferred mostly in your friend circle?

Pepsi Thums up

Both Others specify

5. How much is your consumption of cold drinks in a month?

300ml - 600ml 600ml - 1.2ltr 1.2ltr – 2ltr 2ltr & more

6. During any occasion which cold drink is preferred by you mostly?

Pepsi Thums up

Both Others specify

7. Which packing of cold drinks you prefer mostly?

300 ml 600 ml 1.2 ltr 2 ltr

8. Does promotional schemes affect the choice of cold drink?

| | | | |Definitely yes Probably yes Not sure Probably no Definitely no

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9. Does advertisement influence you to take cold drinks?

| | | | |Definitely yes Probably yes Not sure Probably no Definitely no

10. Does brand endorsement influence you to take cold drinks?

| | | | |Definitely yes Probably yes Not sure Probably no Definitely no

11. How likely you going to use the same cold drink in future?

| | | | |Definitely yes Probably yes Not sure Probably no Definitely no

12. Would you like to recommend your favorite cold drink brand to others?

Yes No

13. Rate the attributes of cold drink on basis of your satisfaction. Attributes Poor Average Fairly good Very good excellentTaste Brand imageAvailabilityAdvertisement

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Quality

Name: ………………………………………………………………………….

Address ……………………………………………………………………….. ………………………………………………………………………..

Age: ………………

Occupation: ……………………………………

Annual income: Less than 1 Lakh 1-3 Lakh

3-5 Lakh 5 Lakh

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