varun beverages
TRANSCRIPT
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MARKET PROFILEIn a waste country like India where temperature
crosses the mark of 450c during summer the demand of
soft drink is always high among consumer and to give
them taste and relief. The main companies engaged in
the manufacturing process of soft drink in India are
very few.
Although they both sell non-colas, which are growing in
volumes, the share of throat that matters the most is
the cola segment. This is the biggest battlefield with
the maximum firepower on display and here Pepsi has
come out tops. With a 511 percent market share. Pepsi
claims to be leader. In fact, Pepsi executives claim that
brand Pepsi on claims to be leader. In fact, Pepsi
executives claim that brand Pepsi on its own sells more
than Coke and Thums Up put together. Coke
executives hotly contest this, asserting that they still
reign supreme, but concede that brand Coke trails
brand Pepsi.
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The main manufacturing is PEPSI, COCA-COLA,
CADBURY, CAMPA and others. Out these PEPSI, COCA-
COLA and CADBURY are three multinational companies
and have the 90% share of the total soft drinks market.
In other category which include CAMPA and local brand
have a share of @ 7%.
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GROWTH IN SOFT DRINK INDUSTRY
AFTER THE ADVENT OF
MULTINATIONALS
The soft drink industries at this time are at the top level
both in canton as well as production. They are
experiencing the boom time level of business in
growth. Looking at the overall growth of soft drink
industries their future can very well be predicated and
foretold.
Basically the initial soft drink industry was Rs. 1,500
corers but now after the advent of Pepsi and Coke it
has gone up Rs. 2,600 cores i.e. around 1,500 lacks
crates which give it very smart growth of 58% and the
yearly growth expectation are 30% p.a. Other terms in
which growth can be measured are as fellows.
Pepsi has turned the neatest trick is in the market
place where, according to company executives, its
overall market share is 48 percent, which puts it within
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sniffing distance of Coke, Coke executives, on their
part, claim a higher share of 59 percent.
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(A) Some action plans of the two companies in India.
COMPANY INITIAL
INVESTMENT
PROPOSED
INVESTMENT
NEW PLANT
PROPOSED
COCA
COLA
250 CRORES 2,400
CRORES
NA
PEPSI 500 CRORES 3,00 CRORES 6
(B) Reaching Out to Millions of Population.
Pepsi after it was launched formulated a strategy that
would reach out to people in every corner of the
country. The franchise of Pepsi has made their brands
available to every body in all the possible corners of
the country. The advertising mainly at wall painting
and boards in villages and other small place. The
franchise location is at such place that they cover the
entire population.
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(C) Advertising Expenses n
The total annual budget of VARUN BEVERAGES LIMITED
is Rs. crore (approximate) the company spends Rs. 7 to
8 on advertising per crate. The basic strategy of
advertising is signage, sin age, sales generating assets
[SGA], sponsoring special events and carrying out new
schemes, but for consumers are dealers, the impact of
advertising is visible in further part of study.
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CATEGORISATION OF INDIAN SOFT DRINKS:
1) Aerated soft 2) Non aerated
Drink Drink
a) Frooti
b) Jumpin
8
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PEPSI HISTORYIN 1898 Caleb Brahma, a New Bern, North Carolina
pharmacist, renames brads drink, carbonates soft
drink he has created to serve his drug store fountain
customers. The new name, Pepsi Cola are derived from
two of the principal in gradients, in gradients, pepsin
and Kola nuts. It was first used on August 28th.
1920 Brahma applies to the U.S. patent officer the
trademark for the Pepsi Cola.
1903 In keeping with his origin as a pharmacists
concoction, brahamas advertising pareses he’s drink
as “Exhilarating, invigorating, aids digestion.”
1905 A new logo appears, the first change from original
in 1898.
1906 the logo is redesigned and a new slogan is added
“The original pure food drink.” The trademark is
registered in Canada.
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1970 The pepsi trad trademark is registered in Mexico.
1909 Automobile racing pioneer “Barney old filed”
becomes Pepsi’s first celebrity endoser when he
appears in Newspaper advertising describes Pepsi
Cola as “A dully drink….refreshing invigorating a
fine broker for a race, the theme delicious and
healthful appeasers, and well be used
intermittently over the next two decdades.”
1920 Pepsi appeals to consumer with, drink Pepsi-cola it
will satisfy you.
1932 The trademark was registered in Argentina.
1934 Pepsi begins selling a 12-ounce be bottle for five
cent, the same price charges by its competitiors for
fix sounces.
1939 A newspaper cartoon strip, Pepsiand Pete,
introductions the theme twice as much for a nickel
to
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increase consumer awareness of Pepsi value
advantage.
1940 Pepsi cakes advertising history with the fir
advertising history jingle over broadcast nationwide
nickel. Nickel will eventually become a hit record
and will be translated into 55 languages.
1989 Pepsi lunges in to next decade by declaring Pepsi
lowers a generation ahead Pepsi Cola introduces an
exiting new flavor, wild chaerry Pepsi.
1990 Pepsi Cola sings the largest commercial trade
agreement in history with the Soviet Unio. Pepsi
sale in the U.S.S.R. is expected to double by the
end of the century. Pepsi is still. The choice of new
generation. As popular teen star Fred savage and
drink Cameron appearing Pepsi advertising. Diet
Pepsi vets Billy crystal and Michael J. foxes in
the eight ones campaign. Ray Charles joins the
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pepsi
family by endolrsing diet Pepsi the siogan is you got
the right one bady Pepsi Cola unveils its new logo,
the eight in 03.
1991 Pepsi now in italic capital type face, is removed
from a smaller blue and red Pepsi swirl and runs
vertically up the package. Ray Charles modifies the
diet Pepsi Slogan to you got the right one baby uh
huh, Pepsi introduces the first market place. The
development marks the first time recycled plastics
used in direct contact with food ion packaging.
1992 Pepsi Cola Company implements the right side up
philosophy, where hew customer and front line
employees are at the top pf the organization, Pepsi
Cola launches the got have it theme which
suppleness the long-standing choice of a
generation. Mountaion dew introduces the popular
theme line. Get vertical.
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1993 Brand Pepsi introduces new slogan, “Are Young
Have Fun, Drink Pepsi” Pepsi Cola profits surpass
and I billion. Pepsi introduces and innovative 24 can
multi pack the eube is faster to carry them the
traditional 24 Pack and it fits in the refrigerator.
1994 The introduction of freshness dating gives
consumer a new, easy to read “Best if used by-
date” on a; dote Pepsi product on North America.
Pepsi max the first no sugar Cola with maximum
Cola lest, is introduced in enrapt the firs Cola is
touted ass the diet Drink for non-diet drinkers.
Pepsi foods inte4rnational and Pepsi Cola.
International merge, creating the Pepsi co-foods
and beverages company.
1995 Pepsi launches a new award wining advertising
campaign, “Nothing else id a Pepsi” starless
and Pepsi them up with the North Ame4rica
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coffee
Partnership and launches mazagran, a carbonated
coffee drink.
1996 In late 1997, Brenda retires as president and CEO of
Pepsi-Cola Phi8l Mariana joins Pepsi-Cola as
president and CEO.
1997 Pepsi-Cola is one hundred-year young the company
has planned many celebr4ations, including an
event for lovers in the brand, hometown of New
Bern. NC.
1998 Pepsi-Cola is changes its divertissement policy in
very country of operation local film, standard spots
personality were used form advertisement.
2000 Dil Mange More.
2002 Lunch New Pepsi Rs. 5/-
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2003 Musham Garam Hai Pepsi Ke Leya Hum Besharam
Hai, Launch blue Pepsi.
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PAST HISTORY OF COCA-COLA
YEAR DEVELOPMENT
1893-1894 Coca Cola Registered at the US Patent office.
1899 Bottled and sold by Missis Bippi Merchants.
1900 Coca Cola botting plant up in Chattanooga Tenessee and Atlanta.
1919 It was acquire by Robert woodruff.
1920 There come into existence around 1000 bottling plant.
1960 New aerate drink fanta appeared on the shelves of market.
1961 Lemon drink was launched.
1963 One calorie Cola launched (TAB)
1966 A low calorie Citrus drink was lauched.
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1982 Coca-Cola Company launched diet Coca-Cola for health conscious drink.
1985 Lunched with a new formula to coke preparation having sweeter taste.
1991 Coke decided on more creative advertising for the worth 200 million (700n crore).
1992 Coke launched a Nestea lce Tea with the joint venture of Nestle.
1993 Coca Cola re-entered to India.
1997-98 80000 Coolers were provided at the outlets in India.
1999-2000 Pet Bottle of Lt. Was lunched.
2001 Mineral water ‘Kinsley’ Was launched.
2002, May Sun fill was launched.
2003 A coffee named Georgia is launched.
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PRODUCT PROFILE OF PEPSI
The product range of the company has listed
brands:-
12. Pepsi Cola-200 ml@rs168-. 600 ml@rs 444/-.
My can 350@rs330,
13. Mirinda (Orange)- 300 ml@rs216. My can
350ml@rs 330,
14. Diet pepsi can 300ml@rs 330/- 600 ml@rs 444/-
Aquafina (Mineral water) – 1 litre@rs108.
15. Slice orangr-500 ml@rs 504/-, 1.25Ml@rs546/-
PRODUCT PROFILE OF COCA COLA
Thums up - 300 ml 206, 200ml-161Coca cola - 300 ml 206, 200ml-161Limca - 300 ml 206, 200ml-161Sprite - 300 ml 206, 200ml-161Maaza - 250 ml 214, 600ml-552 – 22 less in scheme
Water Kinley – 118
2 Ltr-455 – 437 without scheme
600 Ml – 488 – 470 without scheme
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1.25 Maaza – 436
Maaza Tetra pack -250Ml-241 – 3Pack Free
PRODUCT PROFILE OF THE COMPANY
There are ten brands of Coca-Cola named as following:
COKE
THUMS UP
LIMCA
FANTA
MAAZA
KINLEY SODA
SPRITE
KINLEY PACKAGED DRINKING WATTER
KINLEY SODA
SUNFILL
GEORGIA COFFEE
These ten brands differ in taste; flavors are also in
their colors:
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1. COKE: Coke is considered to be cola drinks. It
is generally
Preferred by all sections of consumer this is a
cash cow brand for
The company in terms of sales revenue
2. THUMPS UP: Thumps up is also considered to
be a cola drink. It is hard comparison to coke. It
is preferred by all sections of consumers but
specially to teenagers. It is big source of
company to cash it publicity
3. LIMCA: Limca is considered to be lemony in
taste and comes under the category of cloudy
lemon because of its color, which is similar to
that of clouds. It has to yield good sales
revenue. Children and women generally prefer
it.
4. FANTA : Fanta is coming in orange flavors. It is
preferred by children and women.
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5. MAAZA/MAAZA TETRA PACK: Maaza is
considered to be juicy soft drink
because it contains mango pulp. This soft
drink is preferred by different segments
of
consumers. Maaza tewtra pack is a pack which
can be carried easily
6. SPRITE : In order to compete with 7UP a brand
of Pepsi in the area of plain lemon this product
is launched by coca cola.
7. KINLEY PACKAGED DRINKING WATER when
it was launched it was marketed as mineral
water but due to Government regulation it is
named as packaged drinking water.
8. KINLEY SODA : This is a soda drink. It has
not and no flavors. It is generally used with
alcohol and used by adults.
9. SUNFILL: It is a refreshment cum flavored
powdered drink. It comes in different packs viz.
single serve, multi serve and family pack.
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10. GEORGIA: It is coffee launched in this year and
in the four metropolitan cities only.
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THE COCA COLA BUSINESS IN INDIA
FACT FACTS
India population: 1.1 billion History: coca-cola returned to India in
October 1993, when after a 16 year absence it was launched in Agra home of the famous Taj Mahal.
Share of sales: Coca-cola is a leading beverage company in India with an estimated 1. 5 percent share of the market for non-alcoholic ready-to-drink beverages and an estimated 1.4 percent share of the market for all commercial beverages. The company leads the flavored carbonated commercial beverages. The company leads the flavoured carbonated soft drink market with a 58.4 percent share of sales.
Volume : unit case volume increased 14 percent in 2000, 10 percent in 2001.
Annual per capita consumption : _4 (consumption based on 8 –ounce serving
System Employment : approximately 13,000 people
System investment : More then US$900 million over the last seven years.
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COCA COLA AND QUALITY:
28th January 1997 saw the launch of QA 2000 in India at
a novel and interesting conferences at LEE is
Kempansaki, Mumbai attended by over 150 delegates
from bottling operation of a Coca cola system in India.
The speakers put the three quality principle QA 2000,
to ensure that Coca Cola Company.
Is the symbol of quality around the would
Delivers continued customers and consumers
satisfaction.
Operated as a responsible corporate citizen.
Peter Add man, director technical, Coca India, unveiled
the all-new Equation.
Q=SMC2
The explanation is:
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Quality=satisfy More customers and sell more Coca
Cola products How can improvement of qualities in all
areas help Coca cola sell more products.
In the market place, all selling activities concentrate on
target, the consumer’s preference. The consumer,
while making a decision on whether or not to buy
Coke’s product gets influence by he company image.
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COMPETITIVE BRANDS
The brands, which are in direct competition with, are:-
FKAVIOUR PEPSI CO-BRAND BRAND(COMPANY)
COLA PEPSI PEPSI AHA THUMS-UP (COCA COLA) COKE (COCA COLA) CAMPA COLA (CAMPA)
LEMON MIRINDA LEMON LICA (COC A COLA)MANGO SLICE MAZAA
(COCACOLA)ORANGE MIRINDA ORANGE
SLICE ORANGE MIRINDA APPLLE
FANTA (COCA COLA) CAMPA (CADBURY)
SWEET-SIDA 7 UP CANADA DRY (CADBURY)
SODA EVERESS-SODA TEEM SODA
BESLERI-SODA (BISLERI)
MINERAL WATER
AQUA-FINA KINLEY (COCACOLA)
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Coke v/s Pepsi-ProductAs seen above bo th the compan ies Coke and Peps i have a number o f p roduc ts . Many o f these p roduc ts a re innovat ions bu t t here a re a l so many produc ts wh ich a re b rough t ou t j us t as a compet i t i ve p roduc t fo r the o ther compan ies . Some o f these p roduc ts tha t a re b rough t i n the marke t by bo th the compan ies to compete aga ins t each o ther a re as fo l l ows :
Coke Pepsi
The main dark cola drink of the company which started the rivalry
between these companies.
Pepsi version of dark cola which is the major primary competitor to
Coke.
Fu l l Th ro t t l e i s an energy d r ink b rand produced by
The Coca-Co la Company . I t debu ted in la te 2004 in
Nor th Amer ica .
AMP is an energy d r ink p roduced and d is t r i bu ted by Peps iCo under the Mounta in
Dew so f t d r ink b rand.
Vau l t i s a carbonated beverage tha t was re leased by The Coca-Co la Company
in June 2005 .
Mounta in Dew MDX is an energy d r ink manu fac tu red and d is t r i bu ted by Peps iCo
under the Moun ta in Dew b rand . I t was in t roduced in
2005 .
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Powerade is a spor ts d r ink by The Coca-Co la Company and cu r ren t l y number two in
the spor t s d r ink marke t wor ldwide.
Gato rade is a non-carbona ted spor t s d r ink
marketed by Quaker Oa ts Company , a d i v is ion o f
Peps iCo. Or ig ina l l y made fo r a th le tes , i t i s now o f ten
consumed as a snack beverage.
Spr i t e i s a c lea r , lemon- l ime f l avored , non-caf fe ina ted
so f t d r ink , p roduced by the Coca-Cola Company . I t was
in t roduced to the Un i ted S ta tes in 1961 .
7 Up is a brand of a lemon-lime flavored soft drink.
M inu te Ma id i s a p roduc t l i ne o f beverages , usua l l y
assoc ia ted w i th orange ju i ce , bu t now ex tends to so f t d r inks o f many k inds . The Minu te Maid company
is now owned by Coca-Co la , and i s t he wor ld ' s la rges t
marketer o f f ru i t ju i ces and d r inks . I t i s headquar te red
in Hous ton , Texas .
Trop icana Produc ts i s an Amer ican company based in
Braden ton , F lo r ida , USA, wh ich i s one o f the wor ld ' s
la rges t p roducers and marketers o f o range ju ice . I t
has been owned by Peps iCo, Inc . s ince 1998.
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Ki n ley i s a b r and o f s t i l l o r c a rbona t ed w a te r owne d by The Coc a -Co la Com pany .
Aquafina is a non-carbonated bottled water produced by PepsiCo.
Aqua r iu s i s a mi ne ra l s po r t s d r ink ma nufac t u r ed by The Coca -Co l a Company . I t wa s
f i r s t i n t roduced i n 1983 .
Al l S po r t w as a s po r t s d r ink . I t i s p roduce d by Pe ps i Co .
F an ta i s a so f t d r ink b r and owne d by The Coc a -Co la
Company . I t i s p roduced and d i s t r i bu t ed by The Coca -Co la
Company ' s bo t t l e r s .
Mi r inda i s a b r and o f s o f t d r ink . M i r inda i s owne d by
P eps i Co .
S p r i t e I c e w as t he f i r s t f l avo r ex t e ns i on fo r The Coca -Co la Company ' s Sp r i t e b r a nd so f t
d r ink .
Pepsi Blue is a soft drink made by PepsiCo and launched in mid-2002.
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Coca -Co l a B lak i s a co f f ee -f l avou re d so f t d r ink
in t roduc ed by Coca -Co l a i n 2006 .
P eps i Cappucc ino i s a cappuc c ino - f l a vo red
ca rbona ted s o f t d r ink p roduc ed by P eps i co .
Ma aza i s a Coca -Co l a f ru i t d r ink b r and m arke t ed in Ind i a
and Bang l ades h .
S l i ce i s a l i ne o f f ru i t - f l avo red so f t d r inks manufa c tu r ed by P eps i Co and in t roduced i n
1984 .
L im ca i s a l emon a nd l im e f l avou re d ca rbona t ed s o f t
d r ink ma de in Ind i a by Coca -co l a .
Tee m w as a l em on- l im e-f l avo re d so f t d r ink p roduced by The P eps i -Co l a Compa ny .
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MARKETING CHANNEL
(FOR RETALING)
Must produces do not sell their goods directly to the
final users, between them stands a set of
intermediaries performing a variety of function. These
intermediaries constitute a marketing channel. They
are also called a trade channel or distribution channel.
Marketing channels can thus be described as a set of
independent organization involved in the process of
marketing a key externals resource such as
manufacturing, research, engineering and filed sales
personnel and facilities. It represents a significant
corporate commitment to large number of independent
companies whose business is distribution and to the
particular market they serve, it also practices that
constitute the basic fabric on which woven an
extensive set of ling-term relationship.
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A marketing channel performs the work of moving
goods from producer to consumer. It overcomes the
place and possession gap that separates goods and
services from those who need or want members of the
marketing channel perform a number of key functions.
1. The gather information about potential and current customers, competitors and other actor and forces in the marketing environment.
2. The develop and disseminate persuasive communication to stimulate purchasing.
3. They reach agreement on and other so that transfer of ownership of possession can be affected.
4. They place orders with manufactures.5. They acquire the funds to finance inventors at
deferent level in the marketing channel.6. They assume risk connected with carrying out
channel work.7. They provide for the success storage and
movement of physical products.8. They provide the buyers payments of their bills
through banks and movement of physical products.
9. They oversee actual transfer ownership form one
organization or person to another.
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NUMBER OF MARKETING CHANNELS
1. Direct Marketing Channel- A marketing channel
that has no intermediaries levels.
2. Indirect Marketing channel-Channels containing
one or more intermediaries levels.
CUSTOMERS MARKETING CHANNELS
Channel 1 Manufacturer…………………Consumer Channel 2 Manufacturer…………………Consumer
Channel 3 Manufacturers…………………Consumer
Channel 4 Manufacturer ….Whole…sellers….Jobber. retailer….Consumer
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CHANNEL DYNAMICS Distribution channel do not stand still, New whole
selling and retailing institution emerge and new
channel systems evolve. These are four types of
marketing channels.
1- Conventional Distribution Channel:
A channel consisting one or more independent
producer (S) wholesale (S) & Retailer (S), Each
is a separate business seeking to maximize its
own profits even seeking to maximize its won
profits even if this goal reduces profit for the
system as a whole. No. of channel member has
complete or substantial control over the other
members.
2- Vertical Marketing Channel:
This is a most recent Marketing channel. A
distribution channel system as which producers,
wholesalers and retailers act as unified
systems. One channel member, the channel
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captain owns the other of franchises them or
has so much
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power that they all co-operate. The channel
captain can be the producer, the wholesaler, or
the retailer.
3- Horizontal marketing Channel :
A distribution Channel System in which two or
more unrelated companies put together or
programmers to exploit an immerging
marketing opportunity.
4- Multi-Channel Marketing :
In the past, many companies sold single market
through a single Channel. Multi channel
Marketing occurs when a single firm uses two
or more marketing channels to reach one more
customer segments.
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RETAILING
Retailing includes all the involved selling goods or
services directly to final consumers for personal non-
business use. A retailer store is any business enterprise
whose sales comes primarily form retailing.
Retailings are the last but not least in the marketing
channel through which the eventual transfer to
ownership of goods takes place. The use of retailer
boils to their superior efficiency in making goods widely
available and accessible to target markets. In cases the
retailers perform the important functions mentioned as
under:-
1- Information
2- Promotion
3- Negotiation
4- Ordering
5- Financing
6- Risk taking
7- Physical possession
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8- Payment
9- Title
The Major retailer types are following:
1- Specialty Store: They sell narrows products
line with deep assortment.
2- Department store : They sell several product
the line with each line operated as separate
department managed by specialist buyers or
merchandisers.
3- Super Market: They are relatively large low
cost, low margin, high volume self service
operation designed to serve total needs for
food, laundry and household maintenance
product.
4- Convenience Store: These are relatively small
store located near residential areas, Open long,
hours seven days a week and carrying an
united lines of Hugh turn over convenience
products at Slightly higher prices.
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5- Discount Store: These Sell standard
merchandise at lower prices with lower margins
and higher volumes.
6- Off Price Retailer: These sell the merchandise
are bought at less than regular wholesale prices
and sold at less than retail. These may be of 3
types, mentioned as under:
(a) Factory outlets
(b) Independent off-price retailers
(c) Warehouse clubs (Wholesale Clubs)
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THEORETICAL INPUT PROMOTIONAL ACTIVITY
(FOR RETAILERS)The science of marketing has identified the four P’s of
marketing i.e. (i) Products, (ii) Place (iii) Price and (iv)
Promotion. Every product including soft drink after
satisfies human needs by quenching their thirst. It is
made available for consuming public through a Channel
of distribution i.e. distributors and retail outlets. This
covers the place aspect. Each product is priced in such
a way that it of profit for the maker. Price is also
determined keeping in mind the competitors price and
the demand of the product.
The promotion of a product is done to stimulate
demand is such a way, as to increase sales, better
image and increase market share. The sales promotion
of soft-drink and water products include advertising,
personal selling, sales promotion, publicity and public
relation.
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SALES PROMOTION METHODS
Marketers use many methods of sales promotion.
Depending upon the activity level of their sponsors
their sponsors their variety seems very large. Following
are some the most commonly used methods of sales
promotion.
As noted above, the accomplishments of the descried
promotion and marketing objective ultimately depends
on the extent of the desired response sieved from
methods from methods which are build around these
three target groups. Further, terms of the impact
desired, the variety of sale promotion schemes offered
are opted into in to two categories. One aimed at
producing schemes offered are grouped to two
categories. One, aimed at producing immediate impact,
and the other played impact i.e. carrying on the impact
over a period of time before receiving are full benefit
on the schemes. Price discounts, free samples, where
as coupons, ding stamps, and contests are example, of
delayed impact category of sales emotion schemes.
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Promotion Activities consist of various means of
communicating persuasively with target audience. The
important methods are:-
(a) Advertising: Where an identified sponsor
pays media (Such as T.V.) to transmit
message to target consumer.
(b) Personal Selling: Where sales
representative employed by the firm
engage interpersonal communication with
individuals consumer an prospective
customers.
(c) Sales Promotion: Where the marketer
utilize displays, demonstrations,
premiums, contests, contests or similar
device.
(d) Publicity and Public Relation: Help to
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stimulate supportive new items about the firm
and its product that have greater credibility
with public than advertising.
All these methods of Promotional Activities constitute
the promotion Mix, Sales promotion is the only method
that makes use of incentives to complete the pull
promotions strategy of motivating the force, the
dealers and the consumers in transacting a sale.
According to “American Marketing Association”, Sale
promotion refers to hose activities other personal
selling advertising and publicity, that stimulate
consumer parching and dealer effusiveness such as
display, shows and exhibition, demonstrations and
various other non-recurrent selling efforts not in
ordinary.
“Sales Promotion” is also known by the name of “Extra
Purchase Value E.P.V.).”
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SALES PROMOTIONS : MEANING & OBJECTIVES
S. No.
Sales Promotions
Meaning Objectives
1. Price-off
offer
Offering product at lower
that the normal price.
To
encourage
immediate
sales, attract
non-users,
induce new
product trial,
counter
completion,
inventory
build upat
the trade
level.
2. Quantity-
of
Offering more quantity of
To
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offers the same product at no
extra cost or with a very
nominal increase ion the
price of the price of the
larger quantity packs.
encourage
more/longer
duration
consumption,
higher or
excess
quantity
movement
from the
factory, trade
up consumer
for higher
quantity pack
size.
3 Coupons When the consumer is
entitled to redeem
specific standard
certificate for a
To
encourage
product trial
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product/article free or in
part payment. Coupons
are used by both the
manufacture and the
dealers for sales
promotion. Coupons may
be distributed by mail,
by media
advertisements, door-to-
door inside product
package or by dealers on
purchase.
build loyalty,
trade up
regular users
stimulate
repurchase
rate, solicit
equities.
4 Trading
stamps
Organized by trading
stamp companies or
large retailers. Trading
stamps are a kind of
discount coupons offered
to consumers linked with
the
To
encourage
consumer
loyalty to
certain retail
stores.
48
quantum of their
purchase. On enough
accumulation for various
kinds of merchandise.
5. Consumer
contests
and lucky
draws
When individuals are
invited to complete on
the basis of creative
skills. The letter is based
on the change of luck
factor.
To create
brand
awareness
and stimulate
interest in
the brand
acquaint
consumers
with brand
usage and
benefits build
traffic at the
store.
49
Precipitate
brand usage
and promote
advertising
theme of the
company.
6 Dealer
stock
display
contests
It is type of point-of
purchase advertising,
which uses the show
windows of the dealers
for providing exposure to
the sponsored products.
Dealers participating
enthusiastically and
creatively are awarded.
To provide
product
exposure at
the point of
purchase
generate
traffic at the
store infuse
enthusiasm
among
dealers.
7 Dealer
sales
Which participating To increase
50
consents Dealers invited to
complete in terms of the
sales performance
sales by
dealers
loyalty and
motivate
dealers staff
to sell more.
8. Discounts Other than normal trade
and cash discounts
To push
more sales
to trade
early cash
recovery
9 Trade
allowances
These are temporary
price
reductions/reimbursemen
t of expenses incurred by
dealers-full or in part its
varied types are as under
10 (a) trade
or buying
Offer of price reduction or
purchase of specified
To load the
trade
51
allowance. quantity of a product.
(b) Buy
back
allowance.
A secondary incentive,
which offers a curtains
sum of money to trade
for each additional unit
bough over and above
the deal.
Repurchase
(c) Count
and recount
When a specific amount
of money is offered
after ascertaining the
number of unit sold
during a specified
period.
To move
stocks faster
reward on
sale only.
(d)
Merchandis
e (display)
allowance
An allowance to trade
for providing desired
sales promotion and
product displays.
52
Advertising strategies and schemes to promote
the sales:
The importance of promotion can’t be
overlooked in the filed of marketing.
Pepsi seems to be out spending coca-cola when
it comes to the wall painting and sign boards with
the blue colour dominating the major places of the
city.
Advertising materials such as Glow sings, Sign
boards, wall painting, Wall clocks, Racks, Fridge are
some S.G.A’s where Pepsi is spending a lot. So, I
would like to suggest that company have to increase
the expenses on advertising materials to improve
their sales.
VISIBILITY is very important factor, there is a
famous saying fin Hindi; “JO DIKTA HAI WHO
BIKTA HAI”
We can really have a type of project which was
recently taken up by CABURY’S the IDEA Behind the
project was to make presence of Cadbury’s chocolate
53
being felt in the city, they planned to paint the whole
city with
54
their Glow sign boards wall paintings and Visi-coolers
with the help of their distributors. Their vision was to
paint the whole city Blue. The really increased the
market share of their product with the increase in
their sales.
Some owners said that was only rely on the
schemes provided by the company, if they get good
schemes they get good schemes they can push the
sales of any brand. So, I would like to suggest that
company must ensure to start new schemes and
create awareness for the product to improve the
sales.
Salesman at the delivery van tends to be
inconsistent on certain matters like the concept of
scheme & broken bottles. When dealing with the
shop and eatery owners some salesman supply the
bottles according to the scheme & exchange the
bottles, while some do not.
55
ADVANTAGES OF SALES PROMOTION
1. Sales Promotion makes an immediate effect on
sales.
2. It stimulates positive attitude towards the
products.
3. It gives an extra incentive to the
Retailers/Consumers to made a new purchase.
4. Measurement of the effectiveness of sales
promotion is easier against the offer promotional
methods.
5. It gives extra incentive to take immediate
action now rather than later.
6. It has flexibility and can be used at any stage of
a new product introduction. Sales promotions are
very effective in this regard.
7. Products are becoming standardized and
similar and so need increased support of non-price
factors of which sales promotion is an important one.
56
LIMITATIONS OF SALES PROMOTION
1. Sales promotion has temporary and short life
span.
Sales promotion alone can’t build up brand loyalty.
2. Sales promotions are only supplement, devices
to supplement selling effort of other promotions
tools.
3. They bear not recurring in their use. They have
seldom reuse value.
4. Too much sales promotion may affect adversely
the brand image suggesting its lack of popularity or
overstocking by a company.
5. Advertising agencies accord law status to sales
promotion so that they may be trained for more
creative jobs.
6. Sales promotion is ineffective in lack of proper
planning and Research for Sales Promotion.
57
58
59
42%
22%
10%5.50%
15%
5%
0%5%
10%15%20%25%30%35%
40%45%
PepsiCola
MoundenDew
MirindaOrnage
Slice Nimbooz 7 UP
Series1
42%
22%
12%15.00%
5% 4%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
CCS LIMCA 7 UP TUP MAAZA FANTA
Series1
60
76.75
22.25
66.66
33.34
80
20
0
10
20
30
40
50
60
70
80
Wall Painings Glow SingSinage Aid
Pop
Sinage Aid
% Share of Signage Aid of Pepsi and Coke
Pepsi
Coke
68.42
31.58
55.18
44.82
60
40 40
60
0
10
20
30
40
50
60
70
Refrigerater Visi Cooler
Chilling Aid
% Share of Chilling Aid of Pepsi and Coke
Pepsi
Coke
61
% Share of Pepsi and Coke as a whole in Abu Lane
68%
32%
Pepsi Coke
62
73.33
27.77
50 50
33.33
66.66
0
10
20
30
40
50
60
70
80
Wall Painings Glow SingSinage Aid
Pop
Sinage Aid
% Share of Signage Aid of Pepsi and Coke
Series1
Series2
72.2
22.8
33.34
66.6661.36
38.64 40
60
0
10
20
30
40
50
60
70
80
Refrigerater Visi Cooler
Chilling Aid
% Share of Chilling Aid of Pepsi and Coke
Series1
Series2
63
% Share of Pepsi and Coke
55%
45%
Pepsi Coke
64
90
9.09
100
0 0 00
102030405060708090
100
Wall Painings Glow SingSinage Aid
Pop
Sinage Aid
% Share of Signage Aid Pepsi and Coke
Pepsi
Coke
62.75
37.2545.4
54.55
15.38
84.6
0
100
0
10
20
30
40
50
60
70
80
90
100
Refrigerater Visi Cooler
Chilling Aid
% Share of Chilling Aid of Pepsi and Coke
Pepsi
Coke
65
% Share of Pepsi and Coke
51%
49%
Pepsi Coke
66
56.82
43.18
53.84
46.1643.5
56.5
0
10
20
30
40
50
60
Wall Painings Glow SingSinage Aid
Pop
Sinage Aid
% Share of Signage Aid of Pepsi and Coke
Pepsi
Coke
47.4252.57
64.28
35.72
57.71
47.29 50 50
0
10
20
30
40
50
60
70
Refrigerater Refrigerater Visi Cooler Visi Cooler
Chilling Aid
% Share ofr Chilling Aid of Pepsi and Coke
Pepsi
Coke
67
% Share of Pepsi and Coke
33%
67%
Pepsi Coke
68
% Share of Signage Aid of Pepsi and Coke
50.5455.88
33.3440.46
4.12 6.66
0
10
20
30
40
50
60
Wall Painings Glow Sing SinageAid
Pop
Sinage Aid
Pepsi Coke
34.78
65.32
56.25
42.75
58.63
41.37
0 00
10
20
30
40
50
60
70
Refrigerater Visi Cooler
Chilling Aid
% Share of Chilling Aid of Pepsi and Coke
Pepsi
Coke
69
% Share of Pepsi and Coke
37%
63%
Pepsi Coke
70
CONCLUSION AND RECOMMENDATION
Through the survey undertaken we came to following
conclusion alone with recommendation.
CONSUMER SURVEY
1. The packaging patterns among the pet, glass,
Tetra Tin preferred most by consumer is glass
and Tin. Glass, because it least in cost and tin,
because it can be cared away for mobile
purpose.
2. People refer soft drink mainly to quench their
thirst, which was concluded from the survey.
3. It was also found that tea/coffee is preferred
highly be consumers when they don’t consume
any soft drink. Beer also constitutes substantial
portion in it.
It was found by survey that people like to see
their idol personalities in advertisements.
Against coke/because only the matinee idols &
cricket stars.
71
4. Through survey we come to know that “Pepsi”
is not tussling with “coke” alone but its major
competitor is “Thumps Up” is must better than
“Pepsi”.
5. It was found that “Pepsi” and “coke” both have
list involved in local events and local functions.
That also makes major impact behavior of
people.
6. It was also seen that people find price per
bottle of “Pepsi” and “coke” very high. Which
makes lowers income groups to move towards
local lemon soda.
7. And finally it was found that advertisement of
“Pepsi” had deep impact on people. Because
more than 80% of citizens were that “Pepsi” is
going to launch new product likes NIMBOOZ,
vaninila, and etc.
DEALER SURVEY
It was seen through survey that packaging
which is preferred most dealer is pet, because
72
it is to handle and often selling it they don’t
have
any headache of realizing it from the consumer
as in case with the glass bottle.
It was also found that the schemes that are
brought up in marketed by “Pepsi and coke”
after very couple of day is not making any net
effect on the sale of cola. Whereas one
cannibalizing others market only.
Through survey it was come to know that
500 ml, 300 ml, & 200 ml of ‘limca’ is better
sold than “7up, Mirinda lemon” mostly in all
area of Gurgaon.
The sale in age wise section, it was found
that 200 ml. Is sold in all age groups same
frequency but 500 ml. is sold mostly in 13 to 45
years of are group where “can” is sold only in
high class society only, 300 ml. Old mostly 16
to 25 year of group. Finally 1.5 liter and 1 liter
are use only for party, functions 7 family
purpose.
73
After going through stock and sales of dealer
we come to know that dealers keep stock of
“Pepsi” and “coke” almost in same proportion,
but “Pepsi” is more than’ coke” but it entirely
depends upon dealers to sell “Pepsi or “coke”.
74
RECOMMENDATIONS
Home delivery of all the brands in all sizes instead
of just 1 liters bottle.
Credit facility for retailer providing home facility.
Extra cost margin for providing chilled soft drink,
should given.
Promotional scheme for consumers.
Distribute adv. Materials, free gift like key chains,
caps, t-shirts, wall clocks, wristwatch with symbol
of all the brands of company.
Give stand, umbrella, posters, sign glow etc. to
outliers.
Proper feedback system should be developed by
ensuring regular visits and checks at random at
the various outlets.
Claim should be given informed in advance about
the schemes to be launched.
75
The claims of the consumer schemes should
properly be handled.
Company should try to give some credit facility to
the distributors so that they get motivated.
Advertisements of all the brands should be made
instead of only COCA-COLA.
76
SWOT ANALYSIS
In a most competitive market like some rinks. One has
tuff very strategic against all the business activities of
the rivals. A constant of the market situations and
fitness of self is a must to keep in line with the
competition. Especially in the soft drink market, it has
the rivalry, which is more them any other industry.
Where each player tricks to maximize its market share
on the cost of others. Brand positioning is one area
where there is very crucial battle in Indian of soft drink
market. One of the major tools of this battle is of
course BRAND POSTITIONING. To win situation the
Pepsi must analyze the external environment to
identify there acts and opportunities adopt to the
strategic fit. For this, internal strengths and weakness
must be analyzed.
77
STRENGTHS
1. Pepsi is most popular brand in India. 2. Pepsi is enjoying maximum market share in the
Indian market. 3. Punch line “Yeh Dil Maange More” is the
most effective then any other punch line ever brought.
4. Punch line “Yeh Payass Hai Badi” is the most effective punch line in 2004.
5. Complain of can leakages is which coke and not with, Pepsi.
6. Pepsi is attracting new generation segment due to availability of fountains. This is being licked by coke where fountain machines overall in comparison to Pepsi are less. Especially Ghaziabad.
7. The pet bottles of Pepsi are suitable for household use, whereas coke bottles are not.
8. The inclination of new generation is towards Pepsi due to blue colour concept adopted by the company.
9. Advertising of Pepsi is much more than aggressive them coke.
10. Taste of Pepsi is better than coke.
78
WEAKNESS
1. The shape of bottle of coke is much more
attractive than Pepsi.
2. The writing style of coke name is more
attractive than Pepsi.
3. The 200ml. 300ml. 500ml. off thmps up are sold
in all area in ghaziabad than Pepsi.
4. Bottle crown quality of Pepsi is good, due to its
workability as there are complaints of rusting in
and around crown of Pepsi this more common
during the rainy season.
5. A Pepsi fountain machine is not satisfactory
“Ghaziabad”.
79
OPPORTUNITY
1- The market growth rate is very high in fact
30% to 385 per annum.
2- The punch line of Pepsi speaks most highly
e.g., Pepsi is at the top of the mind among
consumer.
3- The launching of Mountain Dew, Slice of
Pepsi has seen the overall growth in cola segment.
4- The strategy to lower down the prices by
Pepsi against the 200 ml of coke had made
substantial difference in cola market.
5- Coke fountain machines overall in
comparison to Pepsi are less. Especially in
Ghaziabad there is no fountain machine of coke
available, which help Pepsi in attracting new
generation segment.
6- Aggressive helped in increasing their
market share.
7- The launching of Pepsi NIMBOOZ will make
a considerable difference in market share.
80
81
THREATS
1- The threat of risk of potential entrants due to
CADBURRY’S further entry is very considerable.
2- Local lemon soda is also a big threat to Pepsi
as these bottles exhaust most of the buying power
of lower class segment.
3- The threats of seasonal drinks like fruit juice
are also considerable, as at time of peak season,
the rates are Rs.5/- per glass.
4- The growing market may be captured with
great number of package in turn it threats to
Pepsi, as the market demand is very
heterogeneous.
82
OBJECTIVE OF THE RESEARCH
To study the Pepsi & Coke
To do the comparative market mix
analysis of Pepsi & Coke.
To find out the potential customers or
the target customers.
To find out various strategies used by
Pepsi & Coke to capture more and more market
share.
To known about the changing trends of
both companies.
83
SCOPE OF THE RESEARCH
Our research objective is just to identify the Market
Potential. For fulfillment of this object we select the
area of Ghaziabad City. In Ghaziabad city we select
some specific places like.
Raj nagar
Vijay nagar
Shashtri nagar
kavi nagar
dasna
84
IMPORTANCE
As a part of our course curriculum we have assign a
dissertation report (“Comparative Market Mix Analysis
of Pepsi & Coke”)
We have study about the comparative study of Pepsi &
Coke. This research work help us to understand the
importance the group efforts and also help us to
understand various strategy used by the company to
attain their objective and defeat their competitors.
85
RESEARCH METHODOLOGY
INTRODUCTION
Marketing research is a process of collecting and
analyzing marketing information and ultimately to
arrive at certain conclusion. PARLE Beverages Pvt. Ltd.
& Hindustan Coca Cola Ltd., is a concern, which is
marketing products having different brands. Thus a
survey method of marketing research is essentially
exploratory in nature. Thus I opted for questionnaire
method for conducting survey about the marketing of
Pepsi in Ghaziabad region.
86
IMPORTANCE OF MARKETING RESEARCH
Marketing research has its important not only for
consumer market but also it survey effectively to the
producer of goods and services. The use of marketing
research in consumer market may be explained on the
basis of following services rendered by it.
1. It increases the position of a company in
specified industry.
2. It indicated the present future trend of industry
and point out how the companies’ affairs are
being turned up.
3. It helps in development and introduction of New
Product.
87
DATA COLLECTION METHOD
Since the study is exploratory in nature, a personal
interview with each retailer with the aid of
questionnaire to be used in Ghaziabad region to
facilitate tabulation and analysis as data were designed
for segment retailers.
Questionnaire should be such that the respondent
would have free hand in responding and let the
designed information filter through lengthy discussion.
Both open-indeed question and closed ended question
is selected for the above purpose.
FILED WORK : The questionnaire prepared
by researcher and the researcher himself also filled
these whole interviewing the retailers. For interview
of retailer as for as those languages were used
which they can understand clearly such as Hindi &
English.
88
RESEARCH DESIGN : This is a compressive matter
plan of the study undertaken, giving a general
statement of the method used and procedure followed.
Since the study is both exploratory and descriptive in
nature, a personal interview with each retailer with the
help of questionnaire was selected to obtain data. The
questionnaire to be used Ghaziabad Region.
SAMPLING UNIT:
Retailers
Wholesaler
SAMPLING DESIGN: Sample Size approx 270
respondents.
DATA SOURCE: The various source of information
broadly divided in two categories.
1. PRIMARY SOURCE: Source from where first hand
information and gathered directly are called
primary source and thus information collected is
called PRIMARY DATA.
89
In case of above study the primary source was
RETAILER.
2. SECONDARY SOURCE: The source of information
already gathered for some other purpose are
available, is called secondary data, with regard to
my study secondary services of my study where
records of the company, magazines and papers.
90
DATA COLLECTION METHOD
The following methods are widely used for the
collection of data:-
1. Survey Method.
2. Observation Method.
In the above-mentioned method, survey and
observation method were mainly used for the
undertaken topic. Survey method was mostly used for
collection for data to personal interview with the help
of a framed questionnaire in the case of retailer.
As far as retailer are concerned survey, observation
method was also used get some data by watching the
retailer.
Research Instrument: In this regard an instrument
refers to the means by which research is conducted. In
the given study means were questionnaire.
91
In this case of the entire respondent i.e. retailers were
used. It contains both open and closed type
(dichotomous multiple type choice question). A sample
of blank questionnaire of retailers of retailers list with
area is attached with this report in the appendix.
SAMPLING PLAN: The sample was chosen was
judgmental and convenience basis sample size of
approx 270 respondents were taken the sampling unit
was retailers of shashtri nagar, raj nagar, kavi
nagar,dasna govindpuram. The sample consisted of
retailers. Spread over the entire area of distributors.
DATA ANALYSIS & INTERPRETATION : For analysis
& interpretation of data the researcher used:-
Percentage (%) = Number of Respondents x 100Total No. of Respondents.
92
EXECUTIVE SUMMARY
I would like to extend my thanks to the esteemed
organization Varun Beverages Ltd. And its staff
members for giving me an opportunity to carry on
market research on a “Market Share of Pepsi lime and
its Competitor Brand” as competition intensify and
brand proliferate, consumers different between brand
in their own way, to fine out market share is a
conscious attempt on the part of the marketer to
accentuate. This natural tendency and in the process,
impart a distinct identify to find share is achieved
reflects marketer efforts or potentiality. A marketer,
through is diverse and ordinate actions, tries to capture
the market. After knowing share we also come to
known about product design, packaging, method of
distributing etc. and how it has been successful in the
market. My research work is concerned with the
“Market Share of Pepsi lime product” the positioning
adopted by Pepsi is revalued on the basis of
SWOT and various filed observation it observed
93
during the research is that in most preferable pack is
300 ml. Pepsi and
94
Coke through their intensive promotional efforts
introduce this revolutionary changing Indian
Carbonated soft drink market.
Researcher observes an interesting thing that the
launchings of 200 ml. coke in research area which was
initially targeted, hit the Pepis’s consumer of 300 ml,
Coke describes to substantial level and Pepsi remained
unscratched.
After going through the extensive research in the
allocated areas it has been found that market share of
Pepsi and its products found at satisfactory level with
its’ competitor brands coke and its products. The
reason being is proper distr4ibution channel, marketing
efforts, mass advertising proper schemes.
With respect to it’s competitor brand Coke’s product
LIMCA, it is enjoying the maximum market share
because of it’s lemon flavor & attractiveness. Pepsi is
pursuing the philosophy of “High Sale” So I can say
that the future profitability of coke may be high due to
the cost saved is cost earned philosophy.
95
STAGE-I SURVEY OF MARKETS
What is the purpose?
Distribution of Pepsi Production.
Study Sales Pattern.
Promotion Of Product.
What is assessed?
Actual market Share.
Market Sales of Pepsi and its Competitor i.e.
COCA-COLA
Who is assessed?
Existing sales Policies.
Company Strategies.
Who provides input?
Retail Outlets.
96
Distribution & its employers.
Company employees.
How data collection is done?
Survey of retail outlets by questionnaire.
How feedback is taken?
Data analysis & comparison of statistical report.
Suggestions & recommendations.
Who gets feedback?
Management of all level.
Filed work force.
97
QUESTIONNAIRE
Name of outlet: Phone No:
Address: Name of
owner:
Q1. Supply of Pepsi is Regular?
YES NO
Q2. Advertisement material is available of.
a) Pepsi b) Both
c) Coke d) None
Q3. Scheme disclose by salesman daily?
YES NO
Q4. Problem rectified by Pepsi
a) Within a day b) Within a month
c) Within a week d) Never
98
Q5. Service wise, which is batter
a) Pepsi b) Coke
c) Other
Q6. At the buying situation what do you prefer?
a) Brand b) Price
c) Scheme d) Any other
Q7. Which flavor is more demand?
a) Pepsi b) Mirinda
c) Mountain Dew d) Slice
Q8. No. of crates / bottles of Pepsi at Present?
a) 0 – 2 b) 5 – 10
c) 2 – 5 d) above 10
Q9. No. of crates / bottles of Coke at Present?
a) 0 – 2 b) 5 – 10
c) 2 – 5 d) above 10
99
Bibliography
Books:
(a) R.C. Kothari Research Methodology
(b) Philip Kotler Marketing Management
Magazines
(1) Pepsi & Coke Journals
(2) Business Today
(3) Business India
(4) Business Would
Newspaper
(1) Time of India
(2) Economic Times
Web Site
http://www.pepsizone.come
http://www.pepsi.com
www.coca-coal.com
www.myenjoyzone.com
100