PROJECT REPORT ONA STUDY OF THE PREFERENCES AND ACCEPTANCE FOR PEPSI IN COMPARISON TO THE OTHER BEVERAGES (COCACOLA)

(A STUDY OF PEPSI-COLA, INDIA) FULFILLMENT OF THE REQUIREMENT FOR THE FINAL PROJECTOF

MASTERS OF BUSINESS ADMINISTRATION (GURU JHAMBESHWAR UNIVERSITY HISAR) (2005-2007)UNDER THE SUPERVISION OF DR.MR.NEERAJ SINGHAL(REGISTRAR BLSIE GHAZIABAD)

SUBMITTED BY:

JINO JOSE ENROLL NO-05061212025

ACKNOWLEDGEMENT Completing a task is never one man effort. It is often the result of invaluable contribution of number of individuals in a direct or indirect manner that helps in sharing a making success. I express my whole gratitude towards the management of M/S. Varun Beverages Ltd, NOIDA. for given me the opportunity to undergo my final project in a multinational concern of a great reports and allowing me to gain invaluable experience with subsequent exposure to the modern business world. I am very grateful to Mr. B.K.JHA (Manager-HR), Mr Neerajsinghal(Registrar BLSIE Ghaziabad) who guided me in my project. I further extend my thanks to all the employees for the appreciation &

cooperation given help to me in gathering information of the market survey especially route agents. Finally I also indebted to my faculty members, parents and family members who have been a constant source of inspiration for what ever I am because of their blessings. JINO JOSE

PREFACEAll around the world soft drinks have been unanimously accepted as a thirst quencher India a late entrant to the track had grown to a market of Rs.2,000 crores by value in every short span. Indian population, which is rainbow of various cultures in a varying climate, offers a golden opportunity to a Hobble player to tetchy the vast existing potential market so to exploit if being handed with great care. To grab the CSDs market share all the companies are doing continues innovations on every front of marketing mix ranging from product, place, price, promotion and packaging. Continues the process of innovations had revolution the Indian CSD market. As a result of which today soft drink are available in various colours (like white, orange, brown, yellow) various sizes (300 ml, 500 ml, 2 lit.). Various package (like glass bottles, PET bottles, and fountain caps) various flavours (orange, cola, mango etc.).

The process of innovation becomes very expensive due to different liking. So every organization before even a small change prefers to study thoroughly its acceptance level by a people of specific location or all over.

EXECUTIVE SUMMARYA comparative study of two popular brands Pepsi-Cola & Coca-Cola was done for that purpose a survey was brand preference packaging & quantity availability in Mohan nagar market. The different parameters were: Brand preferences. Preference of packaging. Scheme and facilities available. Crate consumption. Preference of quantity. Methodology.

After taking parameters into account, it is important to make an exploratory study of the project and for that an enthusiastic survey was of retailers, were done.

DATA COLLECTION:Firstly questionnaire was prepared to conduct a survey to consumer. The questionnaire was prepared in a systematic manner consisting of closed as well as open ended questions.

FINDING:After conducting a survey it was found that as far as it part is concern coca-cola is leading over Pepsi-Cola. The area covered shows following indications for it. Thums-up (Coca-Cola) was found to have more consumer than the Pepsi & Coke. More schemes are offered by Pepsi-Cola as compared with Coca-Cola. The percentage of Coca-Cola & PepsiCola in Mohanagar city. Pepsi-Cola Coca-Cola 48% 52%

TABLE OF CONTENTS INTRODUCTION COMPANY PROFILE

HISTORY OF PEPSI-COLA PEPSI-COLA IN INDIAN SCENARIO PEPSI-COLA PHRASES PEPSI-COLA LOGOS PRODUCT PROFILE HISTORY OF SOFT DRINKS SOFT DRINK IN INDIAN SCENARIO THE INDIAN COLA SCENARIO OUR EXECTATIONS OUR POLICY ABOUT R K J GROUP & BEVERAGES ORGANIZATION CHART

OBJECTIVE RESEARCH DESIGN RESEARCH METHODOLOGY RESEARCH DESIGN THE COMPETITIVE AREA CATEGARIZATION OF INDIAN SOFTDRINK MEDIA OF ADVERTISING ADVANTAGES & DISADVANTAGES ROLE OF SCHEMES IN SALE GENERATION RACK PROGRAMME STEP WISE ACTIVITY OF RACK PROGRAMME RETAILERS PERCEPTION COMPARATIVE ANALYSIS SAMPLE SELECTION

COMMON TERMS IN PEPSICOLA GRAPHICAL REPRESENTATIONS

DATA ANALYSIS & INTERPRETATION FINDINGS & RECOMMENDATIONS FINDINGS SWOT ANALYSIS RECOMMENDATIONS

LIMITATIONS CONCLUSION ANNEXURE QUESTIONNAIRE

BIBLIOGRAPHY

LIST OF GRAPHS AND CHARTS MARKET SHARE OF PEPSI-COLA & COCA-COLA MARKET STATUS OF PEPSICOLA & COCA-COLA PRODUCTS MARKET SHARE OF PEPSI, COKE & THUMS-UP IN COLA SEGMENT MONOPOLY RETAILERS COMPARISON OF SOFT DRINKS IN RURAL & URBAN AREAS

EMPTY STOCK AVAILABILITY OF CHILLING EQUIPMENTS RACKS IN GHAZIABAD CITY PREFERENCE OF SOFT DRINKS IN QUANTITY RATIO OF CONSUMPTION OF SOFT DRINKS PER 100 CONSUMERS RETAILERS OPINION TOWARD THE PROPER SCHEMES AVAILABLE TO THEM BY PEPSICOLA COVERENCE OF SALESMEN & EXECUTIVES

COMPANY PROFILEIn 1893 Caleb Bradham, a young pharmacist from New Bern, North Carolina, begins experimenting with many different soft drink concoctions; patrons and friends sample

them

at

his

drugstore

soda

fountain.

In 1898 One of Caleb's formulations, known as "Brad's Drink," a combination of carbonated water, sugar, vanilla, rare oils and cola nuts, is renamed "Pepsi-Cola" on August 28, 1898. Pepsi-Cola receives its first logo. Pepsi-Cola North America, headquartered in Purchase, N.Y., is the refreshment beverage unit of PepsiCo Beverages and Foods North America, a division of PepsiCo, Inc. PepsiCo Beverages and Foods North America also comprises PepsiCo's Tropicana, Gatorade and Quaker Foods businesses in the United States and Canada. Pepsi-Cola North America's carbonated soft drinks, including: Pepsi, Diet Pepsi, Pepsi Twist, Mountain Dew, Mountain Dew Code Red, Sierra Mist, and Mug Root Beer account for nearly onethird of total soft drink sales in the United States. Pepsi-Cola North America's noncarbonated beverage portfolio includes Aquafina, which is the number one brand of bottled water in the United States, Dole single-serve juices and SoBe, which offers a wide range of drinks with herbal ingredients. The company also makes and markets North America's best-selling, ready-todrink iced teas and coffees via joint ventures with Lipton and Starbucks, respectively.

PepsiCo, Inc. is one of the world's largest food and beverage companies. The company's principal businesses include: Frito-Lay snacks Pepsi-Cola beverages Gatorade sports drinks Tropicana juices Quaker Foods PepsiCo, Inc. was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay. Tropicana was acquired in 1998. In 2001, PepsiCo merged with the Quaker Oats Company, creating the worlds fifth-largest food and beverage company, with 15 brands each generating more than $1 billion in annual retail sales. PepsiCos success is the result of superior products, high standards of performance, distinctive competitive strategies and the high level of integrity of our people. There are many who feel that Pepsi-Cola had the first move advantage in India. Little do they know about Pepsi-Colas initial foray into Indian soft drinks industry way back in 1956? CocaCola had entered the country just a year back in 1955. But later Pepsi-Cola withdrew from the country in 1961 due to bottling problems. Pepsi-Cola entered India in April 1989 by setting operation in beverages, snacks & agribusiness. At this time Parle had 70% of the market share of the total soft drink market.

Initially it faced some trouble in entering the market due to strong resistance from most of the domestic soft drink industry and the advocates of Swadeshi. The Indian economy was not liberalized and proved to be another barrier. Pepsi-Cola removed these barriers by:

Promising the government to focus considerable selling efforts in the rural area to help economic development. Promising to help boost the expert of agricultural products Offering to transfer the food processing, packaging & water treatment technology to India.

THE HISTORY OF PEPSICOLA1893: Caleb Bradham, a young pharmacist from New Bern, North Carolina, begins experimenting with many different soft drink concoctions; patrons and friends sample them at his drugstore soda fountain. 1898:One of Caleb's formulations, known as "Brad's Drink," a combination of carbonated water, sugar, vanilla, rare oils and cola nuts, is renamed "Pepsi-Cola" on August 28, 1898. Pepsi-Cola receives its first logo.

1902: The instant popularity of this new drink leads Bradham to devote all of his energy to developing Pepsi-Cola into a full-fledged business. He applies for a trademark with the U.S. Patent Office, Washington D.C., and forms the first Pepsi-Cola Company. The first Pepsi-Cola newspaper advertisements appeared in the New Bern Weekly Journal. 1903:"Doc" Bradham moves the bottling of Pepsi-Cola from his drugstore into a rented warehouse; he sells 7,968 gallons of syrup in the first year of operation. Pepsi's theme line is "Exhilarating, Invigorating, Aids Digestion." 1904: Bradham purchases a building in New Bern known as the "Bishop Factory" for $5,000 and moves all bottling and syrup operations to this location. Pepsi is sold in six-ounce bottles. Sales increase to 19,848 gallons. 1905: Pepsi-Cola's first bottling franchises are established in Charlotte and Durham, North Carolina.Pepsi receives its new logo, its first change since 1898. There are 15 U.S. Pepsi bottling plants. The Pepsi trademark is registered in Canada. Syrup sales rise to 38,605 gallons.

The federal government passes the Pure Food and Drug Act, banning 1907: 1909: Automobile race pioneer Barney Old field endorses Pepsi-Cola in newspaper ads as "A bully drink...refreshing, invigorating, a fine bracer before a race." 1920: Pepsi theme line speaks to the consumer with "Drink Pepsi-Cola, it will satisfy you." 1933: By the end of the year, Guth's new PepsiCola Company is insolvent. In a series of moves, he acquires Mega gels interest in the company, giving himself 91% ownership of Pepsi. 1936: Pepsi grants 94 new U.S. franchises and year-end profits reach $2,100,000. 1940: Pepsi-Cola Company makes advertising history with "Nickel, Nickel," the first advertising jingle ever broadcast nationwide on radio. 1941: The New York Stock Exchange trades Pepsi's stock for the first time. In support of the war effort, Pepsi's bottle crown colors change to red, white, and blue. 1960: Young adults become the target consumers and Pepsi's advertising keeps pace with "Now it's Pepsi, for those who think young." 1962: Pepsi receives its new logo, the sixth in Pepsi history. The 'serrated' bottle cap logo debuts, accompanying the brand's groundbreaking

"Pepsi Generation" ad campaign.

1965: Expansion outside the soft drink industry begins. Frito-Lay of Dallas, Texas, and PepsiCola merge, forming PepsiCo, Inc. Military 12-ounce cans are such a success that full-scale commercial distribution begins. Mountain Dew launches its first campaign, "Yahoo Mountain Dew...It'll tickle your innards."

1974: First Pepsi plant opens in the U.S.S.R. Television ads introduce the new theme line, "Hello, Sunshine, Hello Mountain Dew." 1976: Pepsi becomes the single largest soft drink brand sold in American supermarkets. The campaign is "Have a Pepsi Day!" and a classic commercial, "Puppies," becomes one of America's best-loved ads. As people get back to basics, Pepsi is there as one of the simple things in life. 1984: Pepsi advertising takes a dramatic turn as Pepsi becomes "the choice of a new Generation. Lemon Lime Slice, the first major soft drink with real fruit juice, is introduced, creating a new soft drink category, "juice added." In subsequent line of extensions, Mandarin Orange Slice goes on to become the

number one orange soft drink in the U.S. Diet Pepsi is reformulated with NutraSweet (aspertame) brand sweetener.

1985: After responding to years of decline, Coke loses to Pepsi in preference tests by reformulating. However, the new formula is met with widespread consumer rejection, forcing the re-introduction of the original formulation as "Coca-Cola Classic." The cola war takes "one giant sip for mankind," when a Pepsi "space can" is successfully tested aboard the space shuttle. By the end of 1985, the New Generation campaign earns more than 58 major advertising and film-related awards. Pepsi's campaign featuring Lional Richie is the most remembered in the country, according to consumer preference polls. 1989: Pepsi lunges into the next decade by declaring Pepsi lovers "A GenerationAhead."Chris Sinclair is named President of Pepsi-Cola International. Pepsi-Cola introduces an exciting new flavor, Wild Cherry Pepsi 1990: American Music Award and Grammy winner rap artist Young MC writes and performs songs exclusively for national radio ads for Pepsi.

Ray Charles joins the Pepsi family by endorsing Diet Pepsi. 1993: Brand Pepsi introduces its slogan, "Be Young. Have Fun. Drink Pepsi." Pepsi-Cola profits surpass $1 billion. Pepsi introduces an innovative 24-can multi pack that satisfies growing consumer demand for convenient large-size soft drink packaging. "The Cube" is easier to carry than the traditional 24pack and it fits in the refrigerator.

1995: In a new campaign, the company declares "Nothing else is a Pepsi" and takes top honors in the year's national advertising championship. 1998: Pepsi celebrates its 100th anniversary. PepsiCo. Chairman and CEO Roger A. Enrico donate his salary to provide scholarship for children for pepsi company employees.Pepsi introduces Pepsi one the first one calorie drink without the diet taste. 2000: Although Pepsi is a great place to work, Steven Truitt (aka 'struitt') takes his skills and hard work elsewhere (for more money of course!), therefore putting an end to his Pepsi page!

PEPSI-COLA IN INDIAN SCENARIOSince the entry of Pepsi-Cola to India in 1989, the soft drink industry has under gone a radical change. When Pepsi-Cola entered, Parle was the leader with the Thums-up being its flagship brand. Other products offering by Parle included Limca & Goldspot, another upcoming player in the market was, the erstwhile bottler of Coca-Cola, pure drinks. Its offering includes Campa- Cola, Campa-Lemon & Campa-Orange. With the re-entry of Coca-Cola in the Indian market, Pepsi-Cola had to go in for more aggressive marketing to sustain its market share. The chronology of the initial phase of the Cola wars in India was: 1977: Parle launched Thums-up and pure

drinks launched Coca-Cola. 1988: In September, final approval for the

Pepsi Foods Ltd. Project granted by the Cabinet Committee on economic affairs of the Rajeev Gandhi Govt.

PEPSI-COLA PHRASESThe Pepsi-Cola marketing phrase has also changed many times. The marketing folks at the company felt free to invent new phrases whenever they thought the public would be receptive to the change.

1909-1939: Delicious and Healthful 1939-1950: Twice As Much For A Nickel Too 1950-1963: The Light Refreshment 1953-1961: Be Sociable 1961-1963: Now It's Pepsi For Those Who Think Young 1963-1967: Come Alive! You're In The Pepsi Generation 1967-1969: Taste That Beats The Others Cold 1969-1973: You've Got A Lot To Live, Pepsi's Got A Lot To Give 1973-1975: Join The Pepsi People Feeling' Free 1975-1978: Have A Pepsi Day 1978-1981: Catch That Pepsi Spirit 1981-1982: Pepsi's Got Your Taste For Life! 1983-1983: Pepsi Now! 1984-now: Pepsi, The Choice Of A New Generation

PEPSI-COLA LOGOSThe Pepsi-Cola logo has changed many times over the years. Here's a chronological history of the various logos.

PRODUCT PROFILE OF THE COMPANYThere are eight brands of Pepsi-Cola named as follows: Pepsi Mountain Dew Mirinda(Lemon) Mirinda(Orange) Slice Lehar 7-Up Lehar Soda

Aquafina Water These eight brands differ in taste, flavor and also in their colours:

Pepsi:Pepsi is considered to be a cola drink. It is preferred by all sections but especially to Teen-agers. It is a big source of company to cash its publicity. Mountain Dew:Mountain Dew is considered to be lemony in taste and yellowish in colour. It has to yield good sales revenue. It gives competition to Thums-up, a great product of Coca-Cola. Mirinda (Lemon):Mirinda (Lemon) is considered to be lemony in taste, and comes under the category of cloudy lemon because of its colour which is similar to that of clouds. It is generally preferred by children and women. Mirinda (Orange):Mirinda (Orange) is considered to be orange in taste. It is generally preferred by children and women. Slice:Slice is considered to be mango in taste. It is a non-aerated soft drink. It is generally preferred by children and women.

Lehar 7-Up:Lehar 7-Up is considered to be lemony taste, and comes under the clear lemon. Preferred by every age group. Lehar Soda:This is a soda drink. It has no colour and no flavour. It is generally used with alcohol and used by adults. Aquafina Water:It is clean and fresh water. Aquafina water is a mineral water and generally referred by every person.

HISTORY OF SOFT DRINKSThe history of soft drinks began with the end of the last century. Its history dates back to the civil war in USA in 1860. At the time people were suffering from many diseased. Problem at that time was how to cure all these disease since no remedy was present at that time. It was a big question for American people. So in 1885 Mr. Jihn Palmwartion, who lived in Antonica, made a drink and registered it as FRENCH WINE COLA. In the beginning the drink was made with mixture of cocaine and alcohol but later on it was converted and changed into a soft drink. Now it is named as Coca-Cola. A new brand named Pepsi-Cola came in the year 1887.

Around 1984 the first branded soft drink came in the Indian market. This soft drink was named as Gold Spot. Parle Exports Pvt. Ltd. was the first Indian Company to introduce a lemon soft drink, this drink was known as Limca and it was introduced in 1970s. However, before this drink had introduced Cola Pepino which was withdrew in face of tough competition. In the year 1977 Coca-Cola left Indian market and this brought in an opportunity for various Indian companies to show their caliber. At this time a new soft drink was introduced by Parle Products and this was names as ThumsUp. This was a Coca-Cola drink which had a burnt sugar colour. This drink was introduced with a mighty Happy Days Are Here Again. There was another company named Pure Drinks which introduced the soft drink named Campa Cola along with orange and lemon flavour. Just after this many more companies entered the Indian soft drink market. A soft drink named Double-7 had been introduced by a company Modern Bakers. Another company, Mohan Meakins also came with a soft drink named Marry & Puck-Up. Mcdowell came with Thrill, Rush, Sprit.

Previously there was no competition in the Indian soft drink market but with all these companies coming in the Indian market a huge competition was taking place with high voltage advertisement. But in the year 1988 Pepsi-Cola was given permission to sell its soft drinks in the Indian market by the Government of India. Coca-Coal also came back in 1993.

SOFT DRINK MARKET IN INDIAN SCENARIOIndian soft drink industry is witnessing a boom time. Its growth rate is around 30%. With such a high growth rate, volume could reach billion crates within 10 years. Two major multinational companies are fighting to grab a major chunk of business from Indian markets. These are Pepsi-Cola & Coca-Cola. Both of these companies have seen an enormous potential in this country. Consequently, by world standard, Indian per capita consumption of soft drinks, is still very low. Therefore these soft drinks grants feel that capita consumption can only grow up. Soft drink industry has already seen an estimated sale of around 200 million cases in 1997(1 case = 24 bottles) which is 30 million crates higher than last years sale 170 million in 1996. The main reason for such a high growth rate is heightened competition between Pepsi-Cola & Coca-Cola, being a new entrant is far behind. India is actually more vivid in taste and preference than any other country market. Delhi jar instance, accounts for about 20% of total soft drinks consumption in terms of sales. There are about 4,50,000 soft drink retailers in India and their number is increasing day by

day. This actually means that there is just one soft drink retailer on a population of 32,000 approximately which is far below the international standard. Where as Philippines has one soft drink retail counter over a population of 150 people i.e. 4,50,000 outlets on a population of 60 million.

THE INDIAN COLA SCENARIOThe cola market in India is dominated by two global players Pepsi-Cola and Coca-Cola. Pepsi entered the Indian market in 1993. World wide beverage business is bright and Pepsis life, its only business. Deep blue Pepsi, is broad based food and beverage company deriving more than 60% of its sales and operating profits from its snacks food and restaurants business. Both Pepsi foods and Coca-Coal India have hit upon same strategy create awareness by increasing noise levels reduce prices to incuse trials and later increase price once consumer trials have begun. Pepsi-Cola has taken the more capital intensive route of owning and running its own bottling plants(Company Operated Bottling

Operations or COBO), alongside those of its franchisees. Coca-Cola is mainly franchisee driven operations with the company supplying its soft drink concentrate(that sector portion) to its bottles around the world(Franchisee Operated/Owned Bottling Operations or FOBO).

PEPSI-COLA:India figures amongst the top three focus countries on Pepsis horizon sharing the honors with China and Russia. The Indian PepsiCo has pumped in Rs. 300 crore would be investing the similar amount of money in near future. In 1994, Pepsi bought over Dukes in Bombay, which was bought over lock, stock and brand, Rs. 45 crore, COBO account for half of Pepsis total soft drink sales. Pepsi-Cola has single mindedly focused on brand Pepsi and has become virtually a one brand company.

COCA-COLA:Coca-Cola re-entered in India after 17 years in 1993.

By striking a $40 m deal with Parle it got an instant access to the vast Indian soft drink market. Coca-Cola is having a multi brand strategy and is looking for a great volume opportunity in India. Coca-Cola spending on advertisement and recently sponsored the Wills World Cup cricket series. Coca-Cola is about to invest Rs. 2,400 crores for setting up two subsidiaries in India. Within its classic Coca-Cola speak focus, focus, focus and stem roll ahead.

OUR EXPECTATIONSThe M/WBE Program is a purchasingfocused supplier development operation. It does not focus on start-up or in-depth business development support, but rather on expanding mutually beneficial relationships. Suppliers that can develop a balance between purchase price, quality, service and delivery can become viable members of PepsiCola's supplier base.

HOW WE OPERATE:Before approaching Pepsi-Cola, suppliers need to gain an understanding of how we are structured and how purchases are made.

Step 1. Self-Screen:To be a serious contender you must offer a quality product at competitive costs. The competition is great and the process requires perseverance. It can take as long as two years, so think of our program as part of your long-term strategy.

Step 2. Application:Than you have to go on line and complete our registration form.

Step 3. Review:Your material will be reviewed for opportunities within our organization.

Step 4. Follow-up:You can follow-up with us directly to update information or check your status.

BUSINESS CONSORTIUM FUND, INC.:There is financing available through the Business Consortium Fund, Inc. (BCF), a minority development company created by the NMSDC. It provides contract financing to certified ethnic minority businesses through a network of local participating banks and affiliated councils. PepsiCola is one of the founding members of the BCF.

OUR POLICYIt is Pepsi-Cola's policy to promote the utilization of eligible M/WBE vendors in all aspects of the company's business. The company will:

Actively and diligently seek out qualified M/WBEs for all possible company requirements. Ensure that M/WBEs fully comprehend the company's requirements and are thus able to bid appropriately. Make every reasonable effort to help qualified M/WBEs to meet company standards. In carrying out this policy, the company does not expect to sustain any undue or enduring financial or service penalties. Further, with respect to majority-owned companies and general contractors, we advise these vendors of Pepsi-Cola's commitment to support minority economic development.

VisionBeing the best in everything we touch and handle.

MissionContinuously excel to achieve and maintain leadership position in the chosen businesses; and delight all stakeholders by making economic value additions in all corporate functions.

Our SuccessProduction of innovative, high quality retail branded beverages combined with world-class packaging

Driven by a management team with a relentless focus on achieving superior customer service, driving earnings improvement and increasing shareholder value.

Our PeopleAt RKJ we are creating an environment where our employees enjoy a greater degree of empowerment - both individually and in their work teams. Our employees are equipped with the necessary tools, training and management backup for strong performance and accountability, as well as with an environment of open communication and involvement.

BEVERAGES

Indian Beverages industrys size is Rs. 8000 Crores and it is dominated by two players viz Pepsi & Coke only. This high profile industry has lot of potential for growth as per capita consumption in India is 9 bottles a year as compared to 20 bottles in Sri Lanka, 14 in Pakistan, while 12 bottles a person in Nepal. The RKJ group is India's leading supplier of retailer brand Carbonated and Non-Carbonated soft drinks, with beverage manufacturing facilities in India and Nepal. Its experience in the beverage industry dates back to the sixties when it had the first franchise at Agra. The family manufactures and markets Carbonated and Non-Carbonated Soft Drinks and Mineral Water under Pepsi brand. The various flavours and sub-brands are Pepsi, Mirinda Orange, Mirinda Lemon, Mountain Dew, 7UP, Slice Mango, Slice Orange, Evervess Soda and Aquafina.

It has the license to supply beverages in the territories of Western U.P., part of M.P., half of Haryana, whole of Rajasthan, Goa, 3 districts of Maharashtra, 13 districts of Karnataka and whole of Nepal. The group has in total 18 bottling plants in India & Nepal and is responsible for producing and marketing 44% of Pepsi requirement in India.

SALES AND MARKETING DEPARTMENTThis is the department, which controls all the activities relating to marketing and sales. All the orders of supplying drinks are received by the department. It maintains the adequate supply to its agencies. Sales force has the direct link with customers. It collects the marketing information and try to acquaint with this to higher management. The sales forces of Varun Beverages Ltd. comprise following staff: Chairman Mr. R. K. Jaipuria President Mr.Kapil Agarwal Unit Manager Mr.Sanjeev Anand Territory Divisional Manager Mr. Manmohan R. Paul Area Development coordinator Mr. Sharad Vatsa Customer Executive Mr. Manoj Rawat Mr. Imran Khan Salesman

Sales & Marketing Manager control the entire sales force. Sales supervisors perform the following tasks: Sales Supervisor finds & cultivates new customers. Sales Supervisor skillfully communicates information about the companies product and services.

Sales Supervisors know the art of salesmanship approaching, presenting, answering objections and closing sales. Sales Supervisor provides various services to the customers consulting of their problems rendering technical assistance, arranging, financing and expending delivery. Sales Supervisors carryout market research and intelligence work and fill in call report. Today is the time of competition. The business is tremendously dominated by the competition. The sales should be very effective to promote the sales of the production for Retailers convenience, the concern has made the arrangement to supply. Different schemes are introduced in the market to promote the sales of soft drink.

ORGANISATION STRUCTURE

Chairman President Unit Manager TDM ADC Customer Executive Distributers A,B,C Route AgentsHelper

Customer Executive Distributers E,F Route AgentsHelper

OBJECTIVE OF RESEARCHThe several objectives is been taken to conduct the research and they are as follows: To have the study of the present and potential consumer of Pepsi-Cola and Coca-Cola. To analyze the market share of Pepsi-Cola and Coca-Cola. To find which brand of Pepsi-Cola is more popular at consumer level. To find the average consumption of soft drinks at consumer level. The study is also aimed at reviewing the attractiveness and effectiveness of the advertisement of Pepsi-Cola and Coca-Cola.

RESEARCH METHODOLOGYResearch methodology is a way to systematically solve the research problem involving a study of various steps that are generally adopted by a researcher in studying his research problem. THIS INCLUDES: Defending the research problem. Sampling design. Research design. Method of data collection. Analysis & Interpretation.

DEFINING PROBLEM:-

THE

RESEARCH

Problem under the study was finding out the comparative study of Pepsi-Cola and Coca-Cola brand preference, packaging and quantity in Mohannagar city.

SAMPLING DESIGN:Probability sampling design i.e. Random sampling was adopted as a definite plan for obtaining a sample from the population. The selection technique was a Stratified random sampling a restricted probability sampling.

The satisfied random sampling included homogeneous sub population groups i.e. five markets starts from these stratas in the Mohannagar city with an equal sample size of 500 area.

Note :- Proportional allocation under which, the sizes of the samples from the different stratas are kept proportional of the sizes of strata, is not done, since here the purpose of the study basically happens to be a comparison of the differences among the stratas regarding the market position and consumers reach.

RESEARCH DESIGN:An overall Rigid descriptive research design has been used focusing attention on: Formulation of objectives of the study. Designing methods for the data collection. Selecting the sample size. Collecting the data. Processing and Analysis of data. Reporting the finding.

METHOD OF COLLECTION: Primary Source Of Data Collection:

DATA

Collection of data by means of well framed questionnaire & E.D.S sheet Direct interaction with the retailers. Direct interaction with dealers and distributors.

Collection:

Secondary Source Of Data Catalogues of company are studied in order to have a complete knowledge about the different brands available in the market. Different magazines and news papers are studied to collect the information about present scenario of cold drink market. Download the information available on the web-site of the companies. The information is also obtained from the previous report of the companies.

CASE AND TOOLS:Applying the relevant statistical tools did the analysis and interpretation of the findings.

RESEARCH DESIGN

Research Objectives

Situation Analysis

Preliminary Investigation

Sampling Plan Application Content Data Innovation Collection Method

Research Data Design Analysis

Research Instrument Recommendati Report on-ion FollowData Source Presentation up

THE COMPETITIVE AREAThe soft drink market, all over the world has been witnessing a battle between the two major players; Coca-Cola and Pepsi-Cola since very beginning. The thirst quenchers are trying hard to have the major piece of the apple of over all carbonated soft drink market. Both the players are

spending their energies in building infrastructure, and promotional activities.

capacity,

Pepsi-Cola and Coca-Cola both are posing threats for each other in every nook and corner of the world. While Pepsi-Cola is earning most of the part of its bread and butter through beverages sales, Coca-Cola has a multi products portfolio with a handsome portion from the same business. The two warriors are face to face once again here in India with different strategies and policies to attack at the rival. Pepsi-Cola has taken baton in its own hand by floating an investment of $95 millions to set Pepsi Co. in India holdings, a subsidiary for company owned bottling operations (COBO). Countering it Coca-Cola is focusing upon the joint ventures with the existing bottlers to enhance its control on manufacturing and marketing of its product range and attain the quality standards of its class. Both of the companies are following different part to reach the same destiny i.e. to fetch the bigger portion of aerated soft drink market in India. Both the competitors have the distinct vision and priorities abut the Indian soft drink market. Through having so much differences with each other, they both consider India as a huge potential market as per capita consumption here in mere 3 serving per year against an international of 80. Therefore they are putting their best efforts to woe Indian consumer who work for 1.5 hour to buy a soft drink in comparison of the international norms of 5 minutes, a major hurdle to cross over for both the athletes running for getting No.1 position.

Pepsi-Cola is quit aggressive in its approach to Indian consumer. They are desperately working in the strategy to be a winner side in the hot coal war between two big barons. According to PepsiCola philosophy its the madness that encourages executives to think to conjure up those creative tactics to knock the fizz out of their competition. Pepsi-Cola had a large amount of the visibility of its Blue-Red-White logo. They have been going with aggressive marketing by putting Sachin Tendulkar, Akshay Kumar, Shahrukh Khan, Preeti Zinta and now Amitabh Bachchan in their advertisement to endorse their brand, the role models for its targeted consumers, the Teenagers. They have increased the fizz in the market place by introducing the dispensers called Fountain Pepsi and been enjoining a lead its rival there.

Coca-Cola in the other hand is low and steady with the race side by side retailing the every move of its competitor. They have procured the shield of Thums-Up with a handsome market share in Indian soft drink market. Every thing has been put on the fire by these cool merchant. If Coke got the official drink of Wills World Cup; Pepsi blushed as nothing official about it in this way Indian consumer is getting more and punch from the two big cool players and he has to give not about the winner.

CATEGORIZATION OF INDIAN SOFT DRINKSIndian soft drinks are categorized in two ways: Aerated Soft Drinks. Non-Aerated Soft Drinks. The Aerated Soft Drinks, which are marketed in Indian markets are : Cola Cola. Lemon Orange Others Sprite. Pepsi, Thums-up, CocaMirinda, Limca. Mirinda, Fanta. Mountain Dew, Lehar-7up,

The Non-Aerated Soft Drinks are: Slice. Maaza.

Frooti. Jumpin.

MEDIA OF ADVERTISINGAdvertising Media are the means to transmit the message of the advertiser (Pepsi-Cola) to the desired people. They are the channels by which the advertising copy is brought to the notice of the prospective buyers. Following media of advertising are available to an advertiser (Pepsi-Cola).

ADVERTISING MEDIA Press Advertising :-

News Papers. Magazines.

Direct Mail Advertising : Sales Letters. Circulars. Pamphlets. Price List.

Out Door Advertising : Posters. Hoardings. Vehicular. Wall Writing. Electronic Display.

Audio Visual Advertising : Radio. Television. Cinema/Films. Window Display. Trade Fairs/Exhibition.

Above these are all advertising media use by Pepsi. Advertising media is very important part of sales-promotion. Present time Pepsi-Cola is going on

full maturity stages, so advertising media is must for Pepsi-Cola. Educated and civilized people all over the world read newspapers and magazines. Newspapers reach all places and are read by every type of people. Television and films are the audio aids used in advertising.

ADVANTAGES AND DISADVANTAGES OF ADVERTISING MEDIA

ADVANTAGES DISADVANTAGES Higher sales Higher prices Economies of scale Artificial living Goodwill Monopoly Steady Demand Wastage of national resources Launching new product Misleading customers Employment generation Support to press Customer education Research and Development Art and Culture

ROLE OF SCHEME IN SALES GENERATIONScheme play most important role in sales generation. Schemes are to attract the customers and through scheme, company increases the purchase power of customer. Pepsi:Under this scheme, when customer buy a case he will get some extra bottles free. Mirinda (Orange):Under this scheme, when customer buy a case he will get some extra bottles free. Mirinda (Lemon):Under this scheme, when customer buy a case he will get some extra bottles free. Mountain Dew:Under this scheme, when customer buy a case he will get some extra bottles free as well as one scratch card per case. Lehar 7-Up:Under this scheme, when customer buy a Mountain Dew, look under the crown and if the customer is lucky he can win a chance to meet Ms. Malika Seravat, Tido Cap, T-shirt, Bag and Rs.1, Rs.5, Rs.10 off . Rs 50 cash.

Both the companies introduce many types of schemes to attract the customer to increase their sale. So we can easily say that schemes play an important role in sales generation.

RACK PROGRAMME ADVICE OF A TOOL OF MERCHANDISINGRACK PROGRAMME is a tool of merchandising and sales promotion. It was a retailer scheme for promoting PET sales and creating a red zone in the outlet for merchandising purpose. Merchandising encompasses many activities that make products more acceptable to the intended customers. It could be an attractive package or a package incorporating an additional consumers benefit. It ma be a guarantees or a coupon or a special deal. However, a great deal of merchandising is closely related to products activity, particularly packaging, branding, labeling, warranties & guarantees and samples etc. According to American Marketing Association: Merchandising has been defined as the planning and supervision involved in marketing the

particular merchant or service at the place and in the quantities which will best serve to realize the marketing objectives of the business. It can be thought of as a supporting programme to assist in the other functions of the distribution systems. So due to all these benefits and utilities of merchandising company was convinced enough to start the Display Programme across the franchise area.

STEP WISE ACTIVITIES OF RACK PROGRAMMEFollowing are the step wise activities of Rack programme which were to be strictly followed by the success of the display programme. Finalize the mentioned number of outlets in every area

Submit their name and address in the MIS department

Collect broachers for outlet from office

Co-ordinate for racks

Aware the outlets for Rack Programme

Enroll outlets for rack display

Place racks in the market

Randomly cross check the outlet twice in month

Give remarks on the cards

Submit card and bill or purchase in the office for incentive collection of outlet

Collect incentives per audit report

Distribute incentives

Collect receipt from outlets and submit in the office

RETAILERS PERCEPTIONA survey was conducted to study the retailers views of the present market. Future trends and the consumer behaviour patterns the findings of the surveys are as follows:

Retailer stated that the consumers are loyal to the particular segment of the soft drink i.e. Cola, Orange or Lemon but as far the loyalty for the each segment concerned is not very significant. 43% of the retailers survey told that in soft drink, advertising is the key component in driving sales. While 32% stated promotional schemes and 20% brand loyalty as the reason. As consumers are not very brand loyal where the purchase of soft drink is concerned, the retailers push becomes a critical issue. They usually sell the product in which they get the maximum benefit, for this companies are trying to offer them higher margins. While distributors get the margin of rupees 8-9 per crate at 3-4% of MRP, Retailers are given a margin of 10-12% of MRP. The retailers are not happy with this as the cost of refrigeration is very high for soft drinks.

COMPARATIVE ANALSIS AT A GLANCEParticulars Invented In Launched in India Advertising Agency Previous Advertising Agency Celebrities into Advertisement Most Appealing Advertisements Pepsi-Cola 1898 1989 HTA HTA Amitabh Bachchan, Shahrukh Khan, Sachin Tendulkar, etc. 70% Coca-Cola 1886 1993 Chaitra Leo Burnett Mc-Cann-Erickson Aishvarya Rai, Amir Khan, etc. 30%

SAMPLE SELECTIONAREA OF STUDY & SAMPLE SIZE:The project report covered mostly the isolated area of Mohannagar in which I have done my retailers survey in the following area:

Area coveredMohan Nagar Rajendra Nagar Lagpat Nagar Border Vaishali Vashundhra Jhandapur Shalimar Garden Kaushambi Indrapuram

Bhopura Shaheed Nagar Vaishali 2 Maharajpur

SOME COMMON TERMS IN THE PEPSI-COLA SYSTEMSRGB (Refilled Glass Bottles):The term RGB is commonly known as 300 ml bottle.

AVAILABILITY:The term used to designate the pressure of product and or package in an outlet (50% availability means that a particular item is available for purchase in one-half of the total business location that normally stock that particular and/or package type).

BEVERAGE SELECTION:A special showing area for beverage in a retail stores.

BOTTLE:The main business partner in the Pepsi systems responsible for manufacturing sales, distribution and merchandising of Pepsi products. The term refers to the entire bottling organization.

CAN:A still of aluminium container in which beverages are packed for sale at retail.

CASE:A durable box usually made of plastic or cardboard used to contain bottles or cans of beverages.

COSUMER:Someone who drinks, or consumes the product. Consumers are critical to the success of the Pepsi Company.

CUSTOMER:A retailer or dealer who sells or serves the product directly to consumers. Customers are critical to the success of the Pepsi Company.

COOLER:An ice box or mechanically refrigerated unit from which the consumers may obtain cool bottles or cans.

CROWN:The still closure which seals a bottle.

DISPLAY EQUIPMENT:Normally refers to a track made by bottlers to consumers for the display of our products and packages.

DISTRIBUTION:Getting product to includes sales, delivery and merchandising and local account management.

FOUNTAIN:A system where product is dispensed cools into glasses for immediate refreshing to consumers premix and post mix.

PET:Polyethylene Terephthelate plastic used to make bottles.

PLANNED CALL:A series of steps for sales representative to follow, to ensure that customer needs are concisely.

POINT TO DRINK MARKET:Refers to the way from home or an premise mariners where consumers buy Pepsi beverages for immediate consumption.

ROUTE:The sequence of route salesperson follows in servicing those accounts assigned to him. The term generally imply the physical route itself and all business location thereon.

TRADE MARK:-

A category of competing business locations with similar business and product offering & methods of selling to consumers engaged defined activities.

WHOLE SELLER:A business entity, which buys products from producers or manufacturers primarily for resale to retail business. Some bottlers use whole seller to reach certain retail markets.

MARKET SHARE OF PEPSICOLA & COCA-COLA

Coca-Cola 52%

Pepsi-Cola 48%

MARKET STATUS OF PEPSI & COCA-COLA PRODUCT

PEPSI-COLA PRODUCTSLehar 7Aquafina Up Pepsi 7% 9% Lehar 24% Mirinda Soda Orange 4% 14% Slice 20% Mirinda Mountain Lemon Dew 3% 19%

COCA-COLA PRODUCTSKinley Soda 1% Maza 9% Coke 13% Kinley Water 2% Sprite 7% Thums-Up 42% Limca 22%

Fanta 4%

MARKET SHARE OF PEPSI, COKE & THUMS-UP IN COLA SEGMENT

Thums-Up

50%

Coca-Cola

10%

Pepsi

40%

0

10

20

30

40

50

60

MONOPOLY RETAILERS

Pepsi-Cola 10%

Coca-Cola 10%

Mix 80%

COMPARISON OF SOFT DRINKS IN RURAL & URBAN AREASRURAL80 60 40 20 0 Pepsi Coca-Cola

61% 39%

URBAN52% 52 51 50 49 48 47 46

48%

Pepsi

Coca-Cola

EMPTY STOCK

60 50 40 30 20 10 0

54% 46%

Pepsi-Cola

Coca-Cola

AVAILIBILITY OF CHILLING EQUIPMENTS

Others 15%

Both 24%

Pepsi-Cola 46%

Coca-Cola 15%

RACKS IN MOHANNAGAR CITY

Both 24%

Pepsi-Cola 44%

Coca-Cola 32%

PREFERENCE OF SOFT DRINKS IN QUANTITY

2 LT. 24%

330 ML (CAN) 2% 500 ML 12% 300 ML 25%

200 ML 37%

RATIO OF CONSUMPTION OF SOFT DRINKS PER 100 CONSUMERS

Once in a week Never 3% 1% Occasional y 4% Daily 13%

Twice in a week 12%

Often 67%

RETAILERSS OPINION TOWARDS THE PROPER SCHEMES AVAILABLE TO THEM BY PEPSI-COLA

70 60 50

62%

38% 40 30 20 10 0 Yes No

SALESMEN COVERED93% 100 80 60 40 20 0 Yes No 7%

EXECUTIVE VISITED90% 100 80 60 40 20 0 Yes No 10%

ANALYSIS AND INTERPRETATIONIn a price sensitive country like India with a slow economic growth but even so global players in many industries have been targeting the continent as their next major source of growth. Very logical considering the growth rates which the region demonstrates in the past decades. According to the National Council of Applied Economic Research Study in 1996 puts one million household in the Rs. 2.15 lakhs and above income category in 1994-95, which expected to be 2.6 million in 2001-02. The effective demands of C.S.D. come from this category and higher class. In the area of survey the data revealed that: Pepsi-Colas brands Mountain Dew, Mirinda (Orange), Slice hold a good grip over the market. The market shares of Pepsi have declined rapidly due to less gas and sweeten taste. Mountain Dew found to have good market coverage in Mohannagar city. Schemes and offers do not reach to the entire retailers honestly. There is good demand of 2 Lt. PET in Mohannagar city.

The demand in the market among the consumers is mostly skewed towards Thumsup (Coca-Cola products). Pepsi-Cola is sending lavishly on SGAs and signage which is one of the main reasons of its strengthening group on the market in comparison to Coca-Cola is sending quite less.

FINDINGS After conducting the market survey of retailer in Mohannagar city, I analyze that Pepsi-Cola is dominating over Coca-Cola in the sale of PET. Consumers do have a demand for 200 ml and 2 lit. bottle. Retailers need display material. The quality of PET is not good. In the market there is only a retailer on which the sale of the different product of different company depends.

Schemes and offers do not reach to the entire retailers honestly. The brand Thums-up (Coca-Cola) is the market leader in the cola drinks.

SWOT ANALYSISSTRENGTH: Acquired brand with big market share. Improved quality control.

Latest and advanced technology. Modified and attractive packing. Effective executive team. Glamorous attractive and effective local and international advertisement campaigns Very high budget for the sales promotion and advertisement.

WEAKNESS: Labour problem in distribution. Unskilled labours. Tight cash policy. Less concentration on advertising. Information system of company needs improvement.

OPPORTUNITIES: Good rural market. Direction distribution.

Maintain its market share. It should engage in continuous product development and introduction of new flavours.

THREATS: Intense competition with each other. Illegal distribution done by some distributors. Counter attacks on advertisements may spoil its reputation.

RECOMMENDATIONS

First and foremost things are that, whatever the policy is going to be formulated it should not be same for all the areas. Different policies should be framed and implemented at different areas by looking and keeping various variables in the mind like buying habits, preferences, education level financial position of that particular area and standard if living etc. Rural market being a very potential segment needs very quick and prompt efforts to be taken to capture this high volume market. Many retailers complained regarding irregularly in visit by the executives. They also said that executive give very bad response to their complaints. It is necessary that executive should make frequent visit to cover each outlet and try to provide them best Pouches, foreign particles were found in few bottles, so proper quality control measures should be implemented as companys reputation are at stake. There is a great market of soda (1 Lit.) but the supply of this pack is very poor, so the supply should be made possible quickly. Quality of PET bottle should be improved so that most problems can be minimized. Soft drink is still considered a treat virtually a luxury, so it possible company should cut down its price especially of cans. Supply of posters, glow-sign boards, tin boards, banners and sun pack sheets etc should be made at regular interval.

Claim should be provided to the deserving retailers.

Wall painting should be made regularly in the area, as it is a good medium of advertisement. Proper attention should be given to the retailers problem so that they take interest to increase the sale. Proper advertisement should be made at railway station, bus stand, posh area, major market and economies place etc. A company may create favorable impression among the youth if they sponsors small events like college festivals, university programs, school functions, fashion shows, quiz programs etc.

LIMITATIONS The retailers in many cases reluctant to answered any questions. The sample size of retailers and consumers was small. The respondents may be biased on influenced by some other factors. Time and money were the greatest limitation in carrying out the survey. A number of retailers (panwala) being illiterate, it took us lot of time in collecting information. The mere information which we get from the retailers is not sufficient to arrive at a conclusion.

CONCLUSION Service aspect of agencies is very effective, they deliver their product according to the demand a just in time. After conducting the market survey of retailer in Mohannagar city, I analyze that Pepsi-Cola is dominating over Coca-Cola in the sale of PET. After analyzing the market and calculate the weightage, the result comes out that Mountain Dew is the leading product of Pepsi-Cola.

Consumers do have a demand for 200 ml and 2 lit. bottle. Retailers have problem in display material. Most of the place like cinema hall and educational institutions are dominated by Pepsi-Cola. Retailers have complaint regarding the PET, that more better quality bottle should be used. Aquafina (Pepsi-Cola) in Mohannagar city dominated Kinley (Coca-Cola) mineral water. Retailers have a demand of some offers and free gifts . Kinley soda (Coca-Coal) is also dominated by Lehar soda (Pepsi-Cola) in Mohanngar city. Maaza(Coca-Cola) is also dominated by Slice(Pepsi-Cola). It was seen that Lehar Soda (1 lit.) in particular remains short during the season. In the market there is only a retailer on which the sale of the different product of different company depends.

QUESTIONNAIRE

Name of Retail Shop: Owners Name: Address: Q.1. Which brand of soft drink do you sell? a. Only Pepsi-Cola c. Both. b. Only Coca Cola

Q.2. Which quantity of soft drinks you have? a. 200 ml 500 ml d. 2 lit. b. 300 ml e. All. c.

Q.3. Which brand of soda do you sell? a. Leher Soda (Pepsi-Cola) Kinley(Coca Cola) b.

Q.4. Which brand of mineral water do you sell? a. Aquafina (Pepsi-Cola) (Coca Cola) c. Others. b. Kinley

Q.5. Chilling equipment owned by you? a. Only Pepsi-Cola Cola c. Both. b. Only Coca

Q.6. Do you get timely supply of these brands with proper schemes? a. Yes b. No.

Q.7. Is your chilling equipment working properly? a. Pepsi-Cola b. Coca-Cola = = Yes. Yes. No. No.

Q.8. During breakdown of chilling equipment who gives better service? a. Only Pepsi-Cola c. Both. Q.9. Whose racks do you own? a. Only Pepsi-Cola c. Both. b. Only Coca Cola b. Only Coca Cola

Q.10. Is there increase in sales due to display of the racks? a. Yes b. No.

Q.11. Does Company offers any incentives (price off, allowance or free goods) in lieu of displaying their products in their racks? a. Pepsi-Cola b. Coca-Cola = = Yes. Yes. No. No.

Q.12. Availability of glow boards provided by company through promotional scheme.

a. Yes

b. No.

BIBLIOGRAPHY

Marketing Management by Philip Kotler) Principles of Marketing by C. B. Gupta) Research Methodology by C. R. Kothari) Magazines: Advertising Management Business India Business Today Business World www.pepsiworld.com www.pepsico.com

(Written (Written (Written

www.google.com www.coca-cola.com