A Summer Internship Project onComparative Analysis &Research

– PEPSI COLA Vs COCA COLA

A report submitted to delhi business school, New DelhiAs a part fulfillment of

MBA + Post graduate programme (Industry Integrated) inEntrepreneurship and business

Submitted to: Submitted by: Director Academics Sandeep Yadav Delhi business school Spring Batch (08-10) New Delhi DBS/0810/S101

2nd Semester PTU

Internal guide: Dr. Ravi Parkash Delhi Business School New Delhi

B-11/58, M.C.I.E, Mathura road, New Delhi

Website: www.dbs.edu.in

\

Comparative Analysis And Research – Pepsi cola Vs Coca colaSummer Internship Report

Sandeep Yadav MBA+PGP DELHI BUSINESS SCHOOL

Well to say this is my project would be totally untrue. At best this was my dream. There are people in this world, some of them so wonderful, that made this dream become a project. I would like to thank all of them, and in particular:

Especially, MR.Arvind Rathore Franchise manager - who trained us about products and services of PEPSICO and taught us how to deal with customer,.All the TDM, CE and Sachin, Umer, Deepti (Coordinator) – whose off time discussions with me always encouraged and motivated me for the project, he was the one who helped me in understanding the market in a better and easier way.

Dr.Ravi parkash and Mr. Ramesh Kumar (internal faculty guide) and Ms Sweta Seth (Program director) teacher cum mentor, they helped me right from the beginning to the end of my project in every aspect,Mr. Shelesh and Ms. Taruna, Placement cell – After all without their support I would have never got a chance to do my project in my dream topic. My friends and colleagues, Prashant, Ravindra, Laleet, Pawan, Vinod, Vikas and others that surround me, love me and make life fun to reduce stress and tiredness.

And lastly, it is only when one writes and realizes the true power of MS word 2007, from grammar checks to replace-alls. It is simple. And the power of Windows XP the OS where MS Office is …. Thank you Mr. Bill Gates and Microsoft Corp!

I Sandeep yadav declare that this project report entitled comparative analysis of market share Pepsi cola verses coca cola is an original piece of work done and submitted by me towards partial fulfillment of my post

ACKNOWLEDGEMENT

DECLARATION

graduate programme in MBA, under the guidance of Mr. Arvind Rathore (FM) Pepsi food private limited.

DATE: SIGNATURE:

PREFACE

Marketing plays vital role in today’s business scenario in consumer product Company, when there is such a high competition in the market.

The emphasis in the project is providing the study and an insight

into Indian FMCG Business Scenario. The Summer Project is

designed to provide participation of MBA program as on the job

experience. This has given a chance to try and apply the

academic knowledge and gain insight into corporate culture. This

helps in developing decision-making abilities and emphasizes on

active participation by the student.

We gained valuable experience & knowledge during the survey.

The Project consists of our findings after data analysis & then

conclusions were drawn and finally recommendations were put

forward.

Certificate………………………………………………………………..……..…………..2Acknowledgement……………………………….………………………..…..……………3Declaration……………………………………… ………………………..….……….……4Executive Summary………………… …………..………………………………………….6 Introduction… …………………… …………....................................................................7

1.1. History of PEPSICO and COCA-COLA……………………….…………………..….……….....71.2. Product of PEPSICO and COCA-COLA..……..………………………………….. ………….…121.3. PEPSICO and COCA-COLA IN INDIA………………………………….…...….……………….12

2. Compare sales and distribution……………………………………………………………………….162.1. Channel type.…………………………………………………………..……………………...….….……172.2. Distribution service….…………………………………………….……..…………………….….…192.3. Distribution of visi…………………............................................................................................212.4. Service vehicle…………………………………………………………………………………………….222.5. Weekly service……………………………………………………………………………………………232.6. Advertisement…………………………………………………………………………………………….242.7. Discount and schemes…………………………………………………………………………………252.8. Product……………………………………………………………………………………………………….262.9. Average monthly volume …………………………………………………………………………….272.10. Market share……………………………………………………………………………………..282.11. Feedback and Remark………………………………………………………………………..29

3. Objective of study……………………………………………………………………………………………..304. Methodology ………………………….………………………………………………………………………...31

4.1. Data processing and analysis………………………………………………………………………324.2. Fundamental analysis…………………………………………………………………………………334.3. Economic analysis………………………………………………………………………………………344.4. Industry analysis………………………………………………………………………………………...354.5. Company analysis……………………………………………………………………………………….364.6. Technical analysis………………………………………………………………………………………374.7. Limitations…………………………………………………………………………………………………38

5. Analysis of data………………………………………………………………………………………………..395.1. About brewage industry……………………………………………………………………………405.2. Current scenario and prospectus………………………………………………………………415.3. Global comparison……………………………………………………………………………………425.4. Company

6. Recommendation and suggestions

CONTENT

EXECUTIVE SUMMARY

PepsiCo is the world's premier consumer products company focused on convenience food and beverages. We seek to produce healthy financial reward to investors as we provide opportunities for growth and enrichment to our employee

PepsiCo India and its partners have invested more than U.S.$1 billion since the company was established in the country. PepsiCo provides direct and indirect employment to 150,000 people including suppliers and distributors

The group has built an expansive beverage and foods business. To support its operations, PepsiCo has 43 bottling plants in India, of which 15 are company owned and 28 are franchisee owned. PepsiCo’s business is based on its sustainability vision of making tomorrow better than today. PepsiCo’s commitment to living by this vision every day is visible in its contribution to the country, consumers and farmers.

Performance with Purpose articulates PepsiCo India's belief that its businesses are intrinsically connected to the communities and world that surrounds it. Performance with Purpose means delivering superior financial performance at the same time as we improve the world.

To deliver on this commitment, PepsiCo India will build on the incredibly strong foundation of achievement and scale up its initiatives while focusing on the following 4 critical areas that have a business link and where we believe that we can have the most impact.

Coca-Cola is a carbonated soft drink sold in stores, restaurants and vending machines internationally. The Coca-Cola Company claims that the beverage is sold in more than 200 countries. The company produces concentrate, which is then sold to licensed Coca-Cola bottlers throughout the world. The bottlers, who hold territorially exclusive contracts with the company, produce finished product in cans and bottles from the concentrate in combination with filtered water and sweeteners. The bottlers then sell, distribute and merchandise Coca-Cola to retail

stores and vending machines

Pepsi is a soft drink produced and manufactured by PepsiCo. It is sold in many places such as retail stores, restaurants, schools, cinemas and from vending machines. The drink was first made in the 1880s by pharmacist Caleb Bradham in New Bern, North Carolina. The brand was trademarked on June 16, 1903. There have been many Pepsi variants produced over the years since 1898.

It was first introduced in North Carolina in 1898 by Caleb Bradham who made it at his pharmacy which sold the drink which was known back then as "Brad's Drink", and was later named Pepsi Cola possibly due the digestive enzyme pepsin and kola nuts used in the recipe.[1] Bradham sought to create a fountain drink that was delicious and would aid in digestion and boost energy.[2]

In 1903, Bradham moved the bottling of Pepsi-Cola from his drugstore into 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 1926, Pepsi received its first logo redesign since the original design of 1905.

In 1931, the Pepsi-Cola Company went bankrupt during the Great Depression- 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.[3] 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.

During the Great Depression, Pepsi gained popularity following the introduction in 1936 of a 12-ounce bottle. Initially priced at 10 cents, sales were slow, but when the price was slashed to five cents, sales increased substantially. With a radio advertising campaign featuring the jingle "Pepsi cola hits the spot / Twelve full ounces, that's a lot / Twice as much for a nickel, too / Pepsi-Cola is the drink for you," arranged in such a way that the jingle never ends.

Pepsi's success under Guth came while the Loft Candy business was faltering. Since he had initially used Loft's finances and facilities to establish the new Pepsi success, the near-bankrupt Loft Company sued Guth for possession of the Pepsi-Cola company. A long legal battle, Guth v. Loft, then ensued, with the case reaching the Delaware Supreme Court and ultimately ending in a loss for Guth.

Rivalry with Coca-Cola

Main article: Cola Wars

HISTORY OF ‘PEPSICO’

According to Consumer Reports, in the 1970s, the rivalry continued to heat up the market. Pepsi conducted blind taste tests in stores, in what was called the "Pepsi Challenge". These tests suggested that more consumers preferred the taste of Pepsi (which is believed to have more lemon oil, less orange oil, and uses vanillin rather than vanilla) to Coke. The sales of Pepsi started to climb, and Pepsi kicked off the "Challenge" across the nation. This became known as the "Cola Wars."

In 1985, The Coca-Cola Company, amid much publicity, changed its formula. The theory has been advanced that New Coke, as the reformulated drink came to be known, was invented specifically in response to the Pepsi Challenge. However, a consumer backlash led to Coca-Cola quickly introducing a modified version of the original formula (removing the expensive Haitian lime oil and changing the sweetener to corn syrup) as Coke "Classic".

According to Beverage Digest's 2008 report, PepsiCo's U.S. market share is 30.8 percent, while The Coca-Cola Company's is 42.7 percent.[14] Coca-Cola outsells Pepsi in most parts of the U.S., notable exceptions beings central Appalachia, North Dakota, and Utah. In the city of Buffalo, New York, Pepsi outsells Coca-Cola by a two-to-one margin.[15]

Overall, Coca-Cola continues to outsell Pepsi in almost all areas of the world. However, exceptions include India; Saudi Arabia; Pakistan (Pepsi has been a dominant sponsor of the Pakistan cricket team since the 1990s); the Dominican Republic; Guatemala the Canadian provinces of Quebec, Newfoundland and Labrador, Nova Scotia, and Prince Edward Island; and Northern Ontario.[16].

Pepsi had long been the drink of Canadian Francophones and it continues to hold its dominance by relying on local Québécois celebrities (especially Claude Meunier, of La Petite Vie fame) to sell its product.[17] PepsiCo use the slogan "here, it's Pepsi" (Ici, c'est Pepsi) to answer to Coca-cola publicity "Everywhere in the world, it's Coke" (Partout dans le monde, c'est Coke).

By most accounts, Coca-Cola was India's leading soft drink until 1977 when it left India after a new government ordered The Coca-Cola Company to turn over its secret formula for Coke and dilute its stake in its Indian unit as required by the Foreign Exchange Regulation Act (FERA). In 1988, PepsiCo gained entry to India by creating a joint venture with the Punjab government-owned Punjab Agro Industrial Corporation (PAIC) and Voltas India Limited. This joint venture marketed and sold Lehar Pepsi until 1991 when the use of foreign brands was allowed; PepsiCo bought out its partners and ended the joint venture in 1994. In 1993, The Coca-Cola Company returned in pursuance of India's Liberalization policy.[18] In 2005, The Coca-Cola Company and PepsiCo together held 95% market share of soft-drink sales in India. Coca-Cola India's market share was 52.5%.[19]

A sticker from a USSR-produced Pepsi bottle.

In Russia, Pepsi initially had a larger market share than Coke but it was undercut once the Cold War ended. In 1972, Pepsico company struck a barter agreement with the then government of the Soviet Union, in which Pepsico was granted exportation and Western marketing rights to Stolichnaya vodka in exchange for importation and Soviet marketing of Pepsi-Cola. [20] [21] This exchange led to Pepsi-Cola being the first foreign product sanctioned for sale in the U.S.S.R. [22]

Reminiscent of the way that Coca-Cola became a cultural icon and its global spread spawned words like "coca colonization", Pepsi-Cola and its relation to the Soviet system turned it into an icon. In the early 1990s, the term "Pepsi-stroika" began appearing as a pun on "perestroika", the reform policy of the Soviet Union under Mikhail Gorbachev. Critics viewed the policy as a lot of fizz without substance and as an attempt to usher in Western products in deals there with the old elites. Pepsi, as one of the first American products in the Soviet Union, became a symbol of that relationship and the Soviet policy.[23] This was reflected in Russian author Victor Pelevin's book "Generation P".

In 1989, Billy Joel mentions the rivalry between the two companies in the song We Didn't Start The Fire. The line "Rock & Roll and Cola Wars" refers to Pepsi and Coke's usage of various musicians in their advertising campaigns. Coke used Paula Abdul,while Pepsi used Michael Jackson. They then continued to try to get other musicians to advertise their beverages.

In 1992, following the Soviet collapse, Coca-Cola was introduced to the Russian market. As it came to be associated with the new system, and Pepsi to the old, Coca-Cola rapidly captured a significant market share that might otherwise have required years to achieve. By July 2005, Coca-Cola enjoyed a market share of 19.4 percent, followed by Pepsi with 13 percent.[

Slogans

A large advertisement made to resemble a Pepsi cup at Nickelodeon Universe in the Mall of America.

1939-1950: "Twice as Much for a Nickel" 1950: "More Bounce to the Ounce" 1950-1957: "Any Weather is Pepsi Weather" 1957-1958: "Say Pepsi, Please" 1958-1961: "Be Sociable, Have a Pepsi" 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) Pepsi Pours It On". 1969-1975: "You've Got a Lot to Live, and Pepsi's Got a Lot to Give" 1975-1977: "Have a Pepsi Day" 1977-1980: "Join the Pepsi People (Feeling Free)" 1980-1981: "Catch That Pepsi Spirit" David Lucas composer 1981-1983: "Pepsi's got your taste for life" 1983-1984: "Pepsi Now! Take the Challenge!" 1984-1991: "Pepsi. The Choice of a New Generation" (commercial with Michael

Jackson, featuring Pepsi version of Billie Jean) 1986-1987: "We've Got The Taste" (commercial with Tina Turner) 1987-1990: "Pepsi's Cool" (commercial with Michael Jackson, featuring Pepsi version of

Bad) 1990-1991: "You got the right one Baby UH HUH" ( sung by Ray Charles for Diet

Pepsi ) 1991-1992: "Gotta Have It"/"Chill Out" 1992-1993: "Be Young, Have Fun, Drink Pepsi" 1993-1994: "Right Now"Van Halen song for the Crystal Pepsi advertisement. 1994-1995: "Double Dutch Bus" Pepsi song sung by Brad Bentz. 1995: "Nothing Else is a Pepsi" 1995-1996: "Drink Pepsi. Get Stuff." Pepsi Stuff campaign

1996-1997: "Pepsi:There's nothing official about it" (During the Wills World Cup (cricket) held in India/Pakistan/Sri Lanka)

1997-1998: "Generation Next" - with the Spice Girls. 1998-1999: "It's the cola" (100th anniversary commercial) 1999-2000: "For Those Who Think Young"/"The Joy of Pepsi-Cola" (commercial with

Britney Spears/commercial with Mary J. Blige) 2000-2003: "Aazadi dil ki" (Hindi - meaning "Freedom of the Heart")(India) 2003: "It's the Cola"/"Dare for More" (Pepsi Commercial) 2003-2005: "Yeh Pyas Hai Badi" (Hindi meaning "This thirst is too much")(India) 2005-2006: "An ice cold Pepsi. It's better than sex!" (Larry Sypolt) 2006-2007: "Why You Doggin' Me"/"Taste the one that's forever young" Commercial

featuring Mary J. Blige 2007-2008: "More Happy"/"Taste the once that's forever young" (Michael Alexander) 2008: "Yeh hai Youngistaan Meri Jaan!" (Hindi)(Urdu - meaning "This is the Young era

my dear" (India and Pakistan) 2008: "Pepsi Stuff" Super Bowl Commercial (Justin Timberlake) 2008: "Рepsi is #1" Тv commercial (Luke Rosin) 2008: "Pepsify karo gai!" Commercial (Urdu (Hindi - meaning "Wanna Pepsify!")

(Pakistan) (Featuring. Adnan Sami and Annie) 2008-2009: "Something for Everyone." 2009-present: "Refresh Everything" and (during many commercials) "Every Generation

Refreshes The World"

PEPSICO IN INDIA

PepsiCo entered India in 1989 and has grown to become one of the country’s leading food and beverage companies. One of the largest multinational investors in the country, PepsiCo has established a business which aims to serve the long term dynamic needs of consumers in India.

PepsiCo India and its partners have invested more than U.S.$1 billion since the company was established in the country. PepsiCo provides direct and indirect employment to 150,000 people including suppliers and distributors.

PepsiCo nourishes consumers with a range of products from treats to healthy eats, that deliver joy as well as nutrition and always, good taste. PepsiCo India’s expansive portfolio includes iconic refreshment beverages Pepsi, 7 UP, Mirinda and Mountain Dew, in addition to low calorie options such as Diet Pepsi, hydrating and nutritional beverages such as Aquafina drinking water, isotonic sports drinks - Gatorade, Tropicana100% fruit juices, and juice based drinks – Tropicana Nectars, Tropicana Twister and Slice. Local brands – Lehar Evervess Soda, Dukes Lemonade and Mangola add to the diverse range of brands.

PepsiCo’s foods company, Frito-Lay, is the leader in the branded salty snack market and all Frito Lay products are free of trans-fat and MSG. It manufactures Lay’s Potato Chips, Cheetos extruded snacks, Uncle Chipps and traditional snacks under the Kurkure and Lehar brands. The company’s high fibre breakfast cereal, Quaker Oats, and low fat and roasted snack options enhance the healthful choices available to consumers. Frito Lay’s core products, Lay’s, Kurkure, Uncle Chipps and Cheetos are cooked in Rice Bran Oil to significantly reduce saturated fats and all of its products contain voluntary nutritional labeling on their packets.

The group has built an expansive beverage and foods business. To support its operations, PepsiCo has 43 bottling plants in India, of which 15 are company owned and 28 are franchisee owned. In addition to this, PepsiCo’s Frito Lay foods division has 3 state-of-the-art plants. PepsiCo’s business is based on its sustainability vision of making tomorrow better than today. PepsiCo’s commitment to living by this vision every day is visible in its contribution to the country, consumers and farmers.

Findings on the basis of history:

The ad campaign has been Indianised with a lot money being spent on advertising. Brand has been kept alive by effective promotional schemes.

Coca Cola in the initial years of it’s incorporation had spent a lot of money on advertising. Coke is the longest surviving sponsored of The Olympics. To reach at this position advertising and effective event marketing have played a major role for Coca Cola.

"To be the world's premier consumer Products Company focused on convenience foods and beverages. We seek to produce healthy financial rewards to investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in everything we do, we strive for honesty, fairness and integrity."

PepsiCo is a world leader in convenience foods and beverages, with 2007 revenues of more than $39 billion and more than 185,000 employees across the world. Its world renowned brands are available in nearly 200 countries and territories.

PepsiCo entered India in 1989 and has grown to become the country’s largest selling food and beverage companies. One of the largest multinational investors in the country, PepsiCo has established a business which aims to serve the long term dynamic needs of consumers in India.

PepsiCo India and its partners have invested more than U.S.$700 million since the company was established in the country in 1989. In India, PepsiCo provides direct employment to 4,000 people and indirect employment to 60,000 people including suppliers and distributors.

PepsiCo India’s expansive portfolio includes iconic refreshment beverages Pepsi, 7 UP, Mirinda and Mountain Dew, in addition to low calorie options– Diet Pepsi and 7Up Light; hydrating and nutritional beverages such as Aquafina drinking water, isotonic sports drinks - Gatorade, and 100% natural fruit juices and juice based drinks – Tropicana, Tropicana Twister and Slice. Our local brands – Lehar Everess Soda, Dukes Lemonade and Mangola complete our diverse spectrum of brands.

Pepsi's Slice launches 'Aamsutra'

PepsiCo’s popular mango juice drinks brand - Slice - kicked off the 2009 season with its new 'Aamsutra' concept. According to

Homi Battiwalla, business head – juice and juice drinks, PepsiCo India, Slice had seen powerful consumer momentum post relaunch of 2008.

"South Indiais the leading market for mango drinks in the country. Andhra Pradesh is the biggest mango market and also the fastest growing market for Slice and other mango drinks in the country. Tamil Nadu is among the top three states and Slice is the market-leader in Tamil Nadu," he added.

Pepsi has now opted for a new brand ambassador, Katrina Kaif. "The creative thought behind the new communication was to further enhance the Slice experience into dimensions of pleasure, sensuality and indulgence. Last year's commercial was about enumerating the principles of 'Aamsutra' - the art of experiencing pure mango pleasure - with the new Slice. This year, the commercial portrays the next level to bring alive the mango indulgence," stated Hari Krishnan, vice president, JWT - the agency responsible for Slice's campaign.

The company has now opted for a 360o multimedia campaigns involving digital, print, radio, impact outdoors and sampling in core markets.

PepsiCo’s snack food company, Frito-Lay, is the leader in the branded.

Potato chip market and was amongst the first companies to eliminate the use of trans fats and MSG in its products. It manufactures Lay’s Potato Chips; Cheetos extruded snacks, Uncle Chipps and traditional namkeen snacks under the Kurkure and Lehar brands. The company’s high fibre breakfast cereal, Quaker Oats, along with Lehar Lites, low fat and roasted snack options enhance the choices available to the growing health and wellness needs of our consumers. Frito Lay’s core products, Lay’s, Kurkure, Uncle Chipps and Cheetos are cooked in Rice Bran Oil to significantly reduce saturated fats and all of its products contain voluntary nutritional labeling on their packets.

The group has built an expansive beverage, snack food and exports business and to support the operations are the group’s 38 bottling plants in India, of which 15 are company owned and 22 are franchisee owned. In addition to this, PepsiCo’s Frito Lay snack division has 3 state of the art plants. PepsiCo’s business is based on its sustainability vision of making tomorrow better than today. Our commitment to living by this vision every day is visible in our contribution to our country, consumers, farmers and our people

Performance with Purpose articulates PepsiCo India's belief that its businesses are intrinsically connected to the communities and world that surrounds it. Performance with Purpose means delivering superior financial performance at the same time as we improve the world.

To deliver on this commitment, PepsiCo India will build on the incredibly strong foundation of achievement and scale up its initiatives while focusing on the following 4 critical areas that have a business link and where we believe that we can have the most impact.

The first Coca-Cola recipe was invented in a drugstore in Columbus, Georgia by John Pemberton, originally as a cocawine called Pemberton's French Wine Coca in 1885.[6] He may have been inspired by the formidable success of Vin Mariani, a European cocawine.

In 1886, when Atlanta and Fulton County passed prohibition legislation, Pemberton responded by developing Coca-Cola, essentially a non-alcoholic version of French Wine Cola.[7] The first sales were at Jacob's Pharmacy in Atlanta, Georgia, on May 8, 1886.[8] It was initially sold as a patent medicine for five cents [9] a glass at soda fountains, which were popular in the United

HISTORY OF ‘COCA-COLA’

States at the time due to the belief that carbonated water was good for the health.[10] Pemberton claimed Coca-Cola cured many diseases, including morphine addiction, dyspepsia, neurasthenia, headache, and impotence. Pemberton ran the first advertisement for the beverage on May 29 of the same year in the Atlanta Journal.[11]

By 1888, three versions of Coca-Cola—sold by three separate businesses—were on the market. Asa Griggs Candler acquired a stake in Pemberton's company in 1887 and incorporated it as the Coca Cola Company in 1888.[12] The same year, while suffering from an ongoing addiction to morphine[citation needed], Pemberton sold the rights a second time to four more businessmen: J.C. Mayfield, A.O. Murphey, C.O. Mullahy and E.H. Bloodworth. Meanwhile, Pemberton's alcoholic[citation needed] son Charley Pemberton began selling his own version of the product.[13]

John Pemberton declared that the name "Coca-Cola" belonged to Charley, but the other two manufacturers could continue to use the formula. So, in the summer of 1888, Candler sold his beverage under the names Yum Yum and Koke. After both failed to catch on, Candler set out to establish a legal claim to Coca-Cola in late 1888, in order to force his two competitors out of the business. Candler purchased exclusive rights to the formula from John Pemberton, Margaret Dozier and Woolfolk Walker. However, in 1914, Dozier came forward to claim her signature on the bill of sale had been forged, and subsequent analysis has indicated John Pemberton's signature was most likely a forgery as well.[14]

In 1892 Candler incorporated a second company, The Coca-Cola Company (the current corporation), and in 1910 Candler had the earliest records of the company burned, further obscuring its legal origins. By the time of its 50th anniversary, the drink had reached the status of a national icon for the USA. In 1935, it was certified kosher by Rabbi Tobias Geffen, after the company made minor changes in the sourcing of some ingredients.[15]

Coca-Cola was sold in bottles for the first time on March 12, 1894. The first outdoor wall advertisement was painted in the same year as well in Cartersville, Georgia.[16] Cans of Coke first appeared in 1955.[17] The first bottling of Coca-Cola occurred in Vicksburg, Mississippi, at the Biedenharn Candy Company in 1891. Its proprietor was Joseph A. Biedenharn. The original bottles were Biedenharn bottles, very different from the much later hobble-skirt design that is now so familiar. Asa Candler was tentative about bottling the drink, but two entrepreneurs from Chattanooga, Tennessee, Benjamin F. Thomas and Joseph B. Whitehead, proposed the idea and were so persuasive that Candler signed a contract giving them control of the procedure for only one dollar. Candler never collected his dollar, but in 1899 Chattanooga became the site of the first Coca-Cola bottling company. [18] The loosely termed contract proved to be problematic for the company for decades to come. Legal matters were not helped by the decision of the bottlers to subcontract to other companies, effectively becoming parent bottlers.[19]

Coke concentrate, or Coke syrup, was and is sold separately at pharmacies in small quantities, as an over-the-counter remedy for nausea or mildly upset stomach.

New Coke

Main article: New Coke

On April 23, 1985, Coca-Cola, amid much publicity, attempted to change the formula of the drink with "New Coke". Follow-up taste tests revealed that most consumers preferred the taste of New Coke to both Coke and Pepsi, but Coca-Cola management was unprepared for the public's nostalgia for the old drink, leading to a backlash. The company gave in to protests and returned to the old formula under the name Coca-Cola Classic on July 10, 1985.

21st century

On February 7, 2005, the Coca-Cola Company announced that in the second quarter of 2005 they planned to launch a Diet Coke product sweetened with the artificial sweetener sucralose ("Splenda"), the same sweetener currently used in Pepsi One.[20][21] On March 21, 2005, it announced another diet product, "Coca-Cola Zero", sweetened partly with a blend of aspartame and acesulfame potassium.[22] Recently Coca-Cola has begun to sell a new "healthy soda": Diet Coke with vitamins B6, B12, Magnesium, Niacin, and Zinc, marketed as "Diet Coke Plus."

On July 5, 2005, it was revealed that Coca-Cola would resume operations in Iraq for the first time since the Arab League boycotted the company in 1968.[23]

In April 2007, in Canada, the name "Coca-Cola Classic" was changed back to "Coca-Cola." The word "Classic" was truncated because "New Coke" was no longer in production, eliminating the need to differentiate between the two.[24] The formula remained unchanged.

In January 2009, Coca-Cola stopped printing the word "Classic" on the labels of 16-ounce bottles sold in parts of the southeastern United States.[25] The change is part of a larger strategy to rejuvenate the product's image.[25]

PRODUCT OF PEPSCO PRODUCT OF COCA-COLA

1. PEPSI 1. COKE2. MIRINDA 2. THUMS-UP3. MIRINDA LEMON 3. SPRITE4. MOUNTAIN DEW 4. LIMCA5. NIMBOOZ 5. FENTA6. SLICE 6. MAZZA7. 7 UP 7. KINLEY8. AQUAFINA

PRODUCT

PEPSI IN DELHI

Pepsi is a soft drink produced and manufactured by PepsiCo. It is sold in many places such as retail stores, restaurants, schools, cinemas and from vending machines. PepsiCo is working with one head quarter and three territories. PepsiCo is working with more than one lakh people those are joint directly and indirectly with the company. There are 56 distributors and 33 root agents always connect with the company and joint each and every corner of Delhi with the company. Every year more than ten lakh people take the test of Pepsi.

DELHI MARKET

Hierarchy of Pepsi and Coke

General Manager (GM)

Franchisee Manager (FM)

Territory Development Manager (TDM)

Area Development Manager (ADM)

Customer Executive (CE)

PEPSICO IN DELHI

Delhi is a metro city and it is the capital of India. In Delhi there are more than one lakh soft drink outlets. PepsiCo cover all the outlets through their distribution channel for supply.. In PepsiCo all the management work done by Gurgoan office and all the delhi is divide into three major area jai drinks private limited(JDPL) , Pearl drinks limited(PDL) and Trasent Yamuna (TY) for the distribution of PepsiCo

.

PEPSICO IN DELHI

JAI DRINKS PRIVATE LIMITED

PEARL DRINKS LIMITED

TRASENT YAMUNA

DISTRIBUTOR OF THE AREA

DIRECT SUPPLY ORROOT AGENT

MARKET OF COCA-COLA

Delhi is a metro city and it is the capital of India. In Delhi there are more than one lakh soft drink outlets. Coca-Cola covers all the outlets through their distribution channel for supply.. In Coca-Cola all the management work done by Gurgoan office and all the Delhi is divide into three major area Hindustan drinks private limited(HDPL) , City drinks limited(CDL) and Varun drinks private Ltd. (VDPL) for the distribution of Cola-Cola

AREA COVERED Sangam Vihar (JDPL)- 397 Moti bagh, Neta ji nagar (JDPL) 30

Anand vihar (TY) 125Uttam Nagar (PDL) 525Burari, Nathupura, Mukundpur (PDL) 130

COMPARE SALES AND DISTRIBUTION

COCA-COLA IN DELHI

HINDUSTAN DRINKS PRIVATE LIMITED

CITY DRINKS LIMITED

VARUN DRINKS LIMITED

DISTRIBUTOR OF THE AREA

DIRECT SUPPLY ORROOT AGENT

397

525

30

125 130

SANGAM VIHARUTTAM NAGARMOTI BAGH/NETA JI NAGARANAND NAGARBURARI/NATHPURA/ MUKUNDPURA

CHANNEL TYPE

In the channel type we find which type of shop is there like grocery shop, eatery shop, and convenience shop.Grocery 706Eatery 260Convenience 94

67%

25%

9%

Chart Title

GROCERYCONVIENCEEATRY

Distribution Services

In the distribution services we find , the shop keeper how get the Pepsi and coke. Like direct supply by the company, by the wholesaler, by the distributor, by the presale order.

1. Direct service-792. Distributor-3083. Presale-2594. Wholesaler-532

79

259

308

own pepsi cock

Distribution of visi (Freeze)

1. Visi of Pepsi 1982. Visi of coke 1523. Own freeze 782

17%

14%

69%

Visi of PCI Visi of CCX Own visi

In the Pepsi, There are eight product in the Beverage industry in Delhi, Like Pepsi, Miranda, 7up, Miranda lemon, Mountain dew, Nimbooz, Slice, Aquafina

Pepsi

Miranda

Mountain dew

Miranda l

emon

Nimbooz

Slice

Aquafina

7up05

1015202530

Chart Title

Series1 Series2

Demand of product of Pepsi

In the Coca-Cola, There are seven product is going on in the market in the brewage industry. Like coke, Thums-up, Sprite, Limca, Maaza, Fanta, kinley Water.

Coca Cola Limca Maaza Sprite Thums up Kinley water

Kinley Soda

Fanta

12

40

1015 15

1 16

Chart TitleSeries1 Series2

DEMAND OF PRODUCT OF COCA-COLA

Overall market share of PepsiCo and Coca-Cola in Delhi.

PepsiCo 53%Coca-cola 47%

Pepsi53%

Cock47%

Chart Title

I have survey of more than 1400 outlets in Delhi. I found that level of satisfaction of customer and need of customer. Which services they wants , which product they like, which schemes they preferred , those who are not interested in PepsiCo and or coca cola, Pepsi monopoly market and coke monopoly market, whose who are ready to sell the soft drinks but they do not get it, those who are satisfied customer etc.

OVERALL MARKET SHARE OF PEPSI AND COKE

LEVEL OF SATISFACTION

SATISFIED31%

SUPPLY PROBLEM41%

SCHEME ISSUE17%

READY TO BUY1%

PEPSI MONOPOLY8%

VISI PROBLEM 2%

level of satisfaction in pepsi

SATISFIED46%

MONOPOLY13%

SUPPLY ISSUE27%

SCHEME ISSUE8%

READY TO SELL2%

VISI ISSUE4%

LEVEL OF SATISFACTION IN COCA-COLA

I

OBJECTIVE OF THE STUDY

The main objective of the study of PepsiCo and coca-cola is to find the market share , identification gap between sales and distribution, satisfaction level of customer, services provided by the company , span of control through hierarchy level, distribution channel, how company covered the market, stock supply by the company, increasing market share, sustain and maintain quality, product and services.

PEPSICO coca-cola

PEPSI COKEMARKET SHARE 57% 43%SATISFIED 42% 58%SERVICE PROBLEM 35% 65%SCHEME PROBLEM 38% 62%VISI PROBLEM 58% 42%SUPPLY PROBEM 71% 29%

Type Cola

Manufacturer Pepsico.

Country of origin United States

Introduced 1898 (as Brad's Drink)

June 16, 1903 (as Pepsi-Cola)

1961 (as Pepsi)

Related products Coca-Cola

RC-Cola

City-Cola

Website http://pepsi.com

Coca-Cola

Type Cola

Manufacturer The Coca-Cola Company

Country of

origin

United States

Related

products

Website

Pepsi

RC-Cola

City-Cola

http:cocacola.cpm

MONOPOLY MARKET 55% 45%DEMAND OF PRODUCT 59% 41%PRODUCT QUALITY 45% 55%WHOLESALER MARKET 80% 20%

REASEARCH METHODOLOGY

Research methodology is a way to systematically solve the research problems. It may be understood as a science of studying how research is done scientifically. We study the various steps that are generally adopted by a researcher in studying his research problem along with the logic behind them. It is necessary for the researcher to know not only need to know how to develop certain indices or tests, how to calculate the mean, the mode, the median, standard deviation and chi – square, how to apply the particular research techniques, are relevant and which are not and what would they mean and indicate and why? Researchers also need to understand the assumptions underlying various techniques and they need to know the criteria by which they can decide that certain techniques and procedures will be applicable to certain problems and others will not.

What type of research design was used?Exploratory Research Design

Why was this type of design used?Exploratory research is a type of research conducted because a problem has not been clearly defined. Exploratory research helps determine the best research design, data collection method and selection of subjects. Given its fundamental nature, exploratory research often concludes that a perceived problem does not actually exist.Exploratory research often relies on secondary research such as reviewing available literature and/or data, or qualitative approaches such as informal discussions with consumers, employees, management or competitors, and more formal approaches through in-depth interviews, focus groups, projective methods, case studies or pilot studies. The Internet allows for research methods that are more interactive in nature: E.g., RSS feeds efficiently supply researchers with up-to-date information; major search engine search results may be sent by email to researchers by services such as Google Alerts; comprehensive search results are tracked over lengthy periods of time by services such as Google Trends; and Web sites may be created to attract worldwide feedback on any subject.The results of exploratory research are not usually useful for decision-making by themselves, but they can provide significant insight into a given situation. Although the results of qualitative research can give some indication as to the "why", "how" and "when" something occurs, it cannot tell us "how often" or "how many."Exploratory research is not typically generalizable to the population at large.

What data collection methods were used?

METHODOLOGY AND ANALYSIS OF

Primary DataSecondary DataSurvey

Primary Data Collection Methods:In primary data collection, you collect the data yourself using methods such as interviews and questionnaires. The key point here is that the data you collect is unique to you and your research and, until you publish, no one else has access to it. There are many methods of collecting primary data and the main methods include:QuestionnairesInterviewsFocus group interviews

Secondary Data Collection Methods:All methods of data collection can supply quantitative data (numbers, statistics or financial) or qualitative data (usually words or text). Quantitative data may often be presented in tabular or graphical form. Secondary data is data that has already been collected by someone else for a different purpose to yours.

Survey: Surveys are used to collect quantitative information about items in a population. Surveys of human populations and institutions are common in political polling and government, health, social science and marketing research. A survey may focus on opinions or factual information depending on its purpose, and many surveys involve administering questions to individuals. When the questions are administered by a researcher, the survey is called a structured interview or a researcher-administered survey. When the questions are administered by the respondent, the survey is referred to as a questionnaire or a self-administered survey.

What Data Collection Devices were Used?In primary data:

Questionnaire (Mixed)Close endedOpen endedOptionalSemantic Differential Scale

Personal Interview

In Secondary Data:Search EnginesWikipedia & EncyclopediaGoogleWWW.pepsiindia.comWWW.cokeindia.com

I am using primary data for data processing and analysis. I have surveyed in many areas of Delhi. Like Sangam vihar, Uttam nagar, Anand Vihar for finding market share of Pepsi and coca-cola, supply system, hierarchy level, span of control, maintain quality and quantity, market demand, feedback etc.

I am using some statistical tool and techniques for data processing and analyzing like mean, correlation, regression, time series, index number, sampling and sampling distribution, estimation, hypothesis testing and other testing etc, on collected primary data and market share of Pepsi and coca-cola.

Market share of PEPSICO AND COCA-COLA YEAR MARKET SHARE OF PCI MARKET SHARE OF CCI2000 43% 57%2001 47% 53%2002 44% 46%2003 42% 58%2004 48% 52%2005 51% 49%2006 58% 42%2007 55% 45%2008 57% 43%2009 58% 42%

Total market share of pepsico 503Total market share of coca-cola 497

Mean value of pci =sum of Pepsi/ number of year=sum of Pepsi= 503=number of year 10=503/10=50.3

Mean value of ccx = sum of coke/ number of year

= num of coke=497= number of year =10=497/10=49.7

Correlation coefficient Year Production of

Pepsico(in cr.)

Market share of pepsico

Production of Coca-cola(in cr.)

Market share of Coca –cola

2000 100 43% 115 57%2001 102 47% 112 53%2002 104 44% 113 46%2003 107 42% 111 58%2004 105 48% 112 52%2005 112 51% 112 49%2006 103 58% 119 42%2007 99 55% 126 45%2008 96 57% 123 43%2009 95 58% 121 42%

STRENGHT WEAKNESS

SWOT ANALYSIS OF PEPSICO

BIG BRAND NAME IN INDIA OUTSTANDING REPOTATION BRODER PRODUCT LINE SPAN OF CONTROL HIERARCHY GOOD SCHEMES INCREASING MARKET SHARE 60% MARKET COVERED IN

INDIA STRONG DISTRIBUTION OF

CHANNEL GOOD ADVERTISENT

SUPPLY IS WEAK IN TY AREA NO ONE IS RESPONSIBLE FOR

SCHEMES COMMUNICATION GAP

BETWEEN DISTRIBUTOR AND RETAILOR

LEAKAGE PROBLEM DISTRIBUTOR DOES NOT WORK

PROPERLY IN SEASON STOCK SHORTAGE PROBLEM IN

SEASON SUPPLY OF NIMBOOZ IS ADVERTISEMENT BIG MARKET SHARE GAP B/W

PEPSI AND COKE IN INTERNATIONAL MARKET

OPPORTUNITY THREAT NIMBOOZ IS A GOOD OPTION

FOR LIMCA OFFICIAL SPONCERSHIP FOR

COMMON WEALTH GAMES AND ICC WORLD CUP-2011, OLYMPIC GAMES-2011

EXPEND THE MARKET IN TY AREA

ATTRACTIVE SCHEMES NUMBER OF RETAIL COMPANIES

ARE COMING IN INDIA LIKE WOLL-MART

INCREASE NUMBER OF DISTRIBUTORS

INCREASE NUMBER OF VISI AND CREAT PEPSI MONOPOLY MARKET

COMPETITOR (COCA-COLA, RC, CITY)

LIMCA WHOLESELLER CONSISTENT IN TEST CHANGE DEMAND

STRENGTH WEAKNESS

SWOT ANALYSIS OF PEPSICO

SWOT ANALYSIS OF COCA-COLA

BIG BRAND NAME IN INDIA AND ABROAD

OUTSTANDING REPOTATION BRODER PRODUCT LINE SPAN OF CONTROL HIERARCHY GOOD SCHEMES INCREASING MARKET SHARE 45% MARKET COVERED IN

INDIA AND 60% MARKET IN ABORAD

STRONG DISTRIBUTION OF CHANNEL

GOOD ADVERTISEMENTS

SUPPLY IS WEAK IN HDL AREA SCHEMES IS A BIG ISSUE COMMUNICATION GAP BETWEEN

DISTRIBUTOR AND RETAILOR PURIFICATION PROBLEM DISTRIBUTOR DOES NOT WORK

PROPERLY IN SEASON STOCK SHORTAGE PROBLEM IN

SEASON SUPPLY OF LIMCA IS ADVERTISEMENT BIG MARKET SHARE GAP B/W

PEPSI AND COKE IN INTERNATIONAL MARKET

OPPORTUNITY THREAT LIMCA IS A GOOD OPTION FOR

PEPSI OFFICIAL SPONCERSHIP FOR

COMMON WEALTH GAMES AND ICC WORLD CUP-2011, OLYMPIC GAMES-2011

EXPEND THE MARKET IN ALL AREA

COMPETITOR (PEPSICO, RC, CITY)

NIMBOOZ WHOLESALER CONSISTENT IN TEST CHANGE DEMAND

SWOT ANALYSIS OF COCA-COLA

ATTRACTIVE SCHEMES NUMBER OF RETAIL COMPANIES

ARE COMING IN INDIA LIKE WOLL-MART

INCREASE NUMBER OF DISTRIBUTORS

INCREASE NUMBER OF VISI AND CREAT COKE MONOPOLY MARKET

GOOD MARKET SHARE OF PEPSI OVERALL MARKET SHARE OF PEPSI IS 53% ALL THE MARKET CAPTURED BY WHOLESALER WHOLESELLER CHARGE LOW PRICES AS COMPARE TO DISTRIBUTOR

THAT’S WHY DEMAND IS HIGH OF PEPSI DISTRIBUTOR AND CE PROBLEM IN PEPSI AND COKE 33 VISI OF PEPSI AND 23 VISI OF COKE IN 397 OUTLETS NO SUPPLY BY DISTRIBUTOR PEPSI AND COKE DUPLICACY OF PEPSI LARGE MARKET AND DEMAND IS HIGH SUPPLY IS THE MAJOR PROBLEM SCHEME ISSUE REPOTATION IS NOT GOOD ROOT AGENT IS NOT WOKING PROPERLY IT MAY BE A GOOD OPPORTUNITY FOR BOTH PEPSI AS WELL AS COKE 83% SHOPKEEPERS IS NOT SATISFIED WITH SERVICE OF BOTH PRODUCT 65% SHOPKEEPERS IS FACING SCHEMES PROBLEM DEMAND IS HIGH OF PEPSI, MIRINDA AND LIMCA. EXPIRY STORE IS AVAILABLE IN THIS MARKET OF PEPSI DIFFERENT TEST IN SAME PRODUCT CONSISTENCY PROBLEM LEAKAGE PROBLEM REPLACEMENT PROBLEM

DEMAND IS HIGH OF NIMBOOZ BUT THERE IS NO SUPPLY

ANALYSIS OF SANGAM VIHAR

ANALYSIS OF UTTAM NAGAR

UTTAM NAGAR HAS A VERY GOOD MARKET OF PEPSI. OVERALL MARKET SHARE 53% OF PEPSI AND 47% OF COKE 80% RETAILOR IS SATISFIED FROM PEPSI 12% RETAILOR IS SATISFIED FROM COKE 11% PEPSI MONOLOPY AND 2% COKE MONOPOLY MARKET ALL THE MARKET IS COVERED BY WHOLESELLER IN PEPSI AND COKE DEMAND IS HIGH FOR THE PEPSI, MIRINDA AND LIMCA 84 VISI OF PEPSI AND 45 VISI OF COKE ARE AVAILABLE THERE IN THE

MARKET REQUIRED ADVERTISEMENT SCHEMES ISSUE SERVICE IS MAJOR PROBLEM WITH COKE DISTRIBUTOR AND CE IS NOT WORKING PROPERLY IN COKE GOOD REPUTATION OF PEPSI IN THIS MARKET SUPPLY IS TOO GOOD IN PEPSI DEMAND FOR NIMBOOZ AND LIMCA IS HIGH BUT SUPPLY IS NOT THERE

PROPERLY PEPSI VECHILES DOES NOT STOP THEIR VECHILE ON ROOT.

IT IS A VERY LARGE MARKET, THERE ARE MORE THAN 1000 SHOPS, GOOD MARKET CONDITION, DEMAND AND SUPPLY MISMATCH IS THERE IN THIS MARKET.

CONCLUSION

SUGESSION AND RECOMMENDATIONS

After surveying the 150 respondents if we compare the data Pepsi has an edge over coke.

Pepsi has less market share due to its sweeter taste than other beverages brand and most of the people are in favor of strong taste. General stores sell more soft drink rather than other stores. 300 ml is a more consumable size by the consumer compare to other

sizes. People really are more health conscious still they believe soft drinks

contains pesticides. Elders in family prefer less strong drinks like mazza, slice and fruity. Soft drinks become trends among friends. The advertisement of Pepsi is good which influence the purchasing

behavior of consumers. T.V. has more impact to get update people about the Pepsi and brands.

RECOMMENDATIONS

PEPSI, the choice of youth is not providing the first choice of young generation. Youth want something strong in cold drinks & thus prefers strong taste. Pepsi should come out with some extra strong taste to catch up maximum young generation & to become exactly Generation Next drink.

The distribution Channel should be focused on General Stores because most of the people purchase soft drinks from general stores.

The company should update the people about pesticides time to time because most of the people still afraid of pesticides.

Most of the elders in the family take soft drinks but not Pepsi they considered more orange and less strong taste company should come up with new taste keeping elders in its mind to increase sale and market share.

People are confused about the role of Pepsi in health company should clear the soft drink role whether it is beneficial for health or not.

Pepsi co should improved its advertisement quality, it should be realistic not imaginary.

People get updated by T.V. Pepsi co should increase the updation by publicity as well as by Hoardings

CONSISTENCY ( PEPSI BLUE, NIMBOOZ, COKE DIET ) INCREASE NUMBER OF DISTRIBUTORS INTERCHANGE STAFF IN THE MARKET EMOTINAL ADVERTISEMENT

NUMBER OF VISI SERVISES OF VISI DEMAND EFFECTIVENESS IMPROPER RETAILOR DEPEND ON SUPPLIER CREATE MONOPOLY MARKET WITH THE HELP OF VISI SCHEMES ATTRACT TO RETAILOR (MY CAN) PARTICIPATION IN OLYMPIC GAMES, COMMON WEALTH GAMES, ICC WORLD CUP

LIMITATIONS

Findings are based on the views expressed by the consumers. So it may suffer from biased prejudices.

Weather conditions were not favorable. Some of the respondents were not co-operative & many seem to be

having no interest. The study has not been intended on a very large scale, have the

possibility of errors, which cannot be ruled out. Time limitations. Area was specified. I had lack of knowledge about the product of the local market. The sample size was very short for this kind of marketing survey Money Limitation was over there.

BIBLIOGRAPHY

WEBSITES:

www.pepsi.com www.pepsicoindia,comwww.cocacola.comwww.cocacolaindia.comwww.wikipedia.comwww.encyclopedia.com BOOKS:Research Methodology- C.R.KothariMarketing Research- B. S. BediPrinciples of Marketing- P. Kotler & Armstrong