Fashion Brand Managemennt

Comparative brand analysis of Pepsi and Coca-Cola

Submitted by: Karuna Sharma Khushal yadav Aditi patwari Pawan keswani

MFM II

Indian beverage market The size of the non-alcoholic beverages market in India is likely to reach the Rs.11,000 crore-mark by 2015, as predicted by the industry body Assocham. Growing at a CAGR of about 20%, the non-alcoholic beverages sector is currently worth about Rs. 6,000 crore. Domestic consumption of non-alcoholic beverage currently stands at about 17,500 crore litres and is likely to cross the 35,000 crore litres mark by 2015. Emerging wellness trends, higher expenditure for healthy lifestyle by Indias rising middle class and overall strong domestic economy are certain key factors driving the non-alcoholic beverage market in India. The non-alcoholic beverages industry includes carbonated beverages,

sparkling beverages, still beverages like distilled water, fruit juices, fruit-based drinks, energy and sports drinks, sodas, hot beverages like tea and coffee and other drinks that have no alcohol content. Coca-Cola, Pepsico, Parle Agro Pvt Ltd, Dabur and Godrej are among the leading players in the domestic non-alcoholic beverage circuit. Carbonated or aerated drinks account for about 30% of the total nonalcoholic beverages market in the country. The size of the segment is currently estimated at about Rs. 1,800 crore, while the value of the fruit drink segment is estimated at about Rs. 1,200 crore and the energy drinks market is worth about Rs. 600 crore. Coca-Cola and PepsiCo, the two giants, together control about 90% of the carbonated beverage market in India. Both the companies are expanding their CSD portfolio by way of flavours and variants. PepsiCo, has witnessed a big shift from a portfolio dominated by carbonated beverages to a more balanced one. Their ratio of CSD portfolio to the non-

carbonated one now stands at 2:1, a big change from 9:1 a few years back. Coca-Cola is also identifying new flavours. Its core cola brands continue to contribute more to revenues; Thums Up is the top-selling soft drink in India. Each brand has contributed around 10 per cent or more to the mix. The Coca cola Company The product that has given the world its best -known taste was born in A t l a n t a , Georgia, on May 8, 1886. Dr. John Stith

Pemberton, a local pharmacist, produced the syrup for Coca Cola, and carried a jug of the new product down the street to Jacobs

Pharmacy, where it was sampled, pronounced excellent and placed on sale for five cents a glass as a soda fountain d r i n k.

C a r b o n a t ed w a t er w a s t e a m e d w i t h t h e n e w syrup to produce a drink that was at once Delicious and refreshing.

Coca-Cola India Coca-Cola the corporation nourishing the global community with the worlds largest selling soft drink concentrates since 1886, was the leading soft drink brand in India until 1977, when it left rather than reveal its formula to the government and reduce its quality sta ke as

required under the Foreign Exchange Regulation Act (FERA) which governed the operations of foreign companies in India. Coca Cola then returned to India on 26 th October, 1993 after a 16 year hiatus, with its launch in Agra, giving a new Thumbs up to t he Indian soft drink market. In the same year, the Company took over ownership of the nations top soft-drink brand and bottling network. Ever since, Coca-Cola has made significant investments to build and continually consolidate its business in the countr y, including new production

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Coca-Cola

international investors, having invested more than US$ 1 billion in Indian the first decade, and further pledged another US$ 100

b i l l i o n i n 2 0 0 3 f o r i t s operations. The Company has shaken up the Indian carbonated drinks market greatly, the pleasure of world-class drinks giving to fill consumers up their

h y d r a t i o n , refreshment, and nutrition needs. The company stands for its mission vision and values The companys vision is all about creating a long-term destination for their business and providing with a "Road map" for winning together with their bottling partners. Their Road map starts with their mission, which is enduring. It declares their purpose as a Company and serves as the standard against which they weigh their actions and decisions:
To refresh the world. To inspire moments of optimism and happiness. To create value and make a difference.

Their vision serves as the framework for it and guides every aspect of our business by describing what we need to accomplish in order to continue achieving sustainable, quality growth. It is based on the following elements: People: Be a great place to work where people are inspired to be the best they can be Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and satisfy peoples desires and needs Partners: Nurture a winning network of customers and suppliers, together we create mutual, enduring value

Planet: Be a responsible citizen that makes a difference by helping build and support sustainable communities

Profit: Maximize long-term return to share owners while being mindful of our overall responsibilities

Productivity: Be a highly effective, lean and fast-moving organization

The companys values serve as a compass for their actions and describe how they behave in the world. Leadership: The courage to shape a better future Collaboration: Leverage collective genius Integrity: Be real Accountability: If it is to be, its up to me Passion: Committed in heart and mind Diversity: As inclusive as our brands Quality: What we do, we do well

Brand portfolio Brand Portfolio of Coca-Cola India has a hybrid brand architecture. Some brands benefit due to association with coco cola while others are the driver brands.

The Coca Cola Company offers a wide range of products to the customers including beverages, fruit juices, and bottled mineral water. The company is always looking towards innovation and constantly strives to satisfy its consumers through offering a wide range of new and improved products. The Coca Cola Company has a wide range of products out of which the following products are available in India:

BRAND

TARGET CUSTOMER

PRODUCT PORTFOLIO ROLE MARKET CONTEXT ROLE

Young generation Coca cola

Linchpin brand

Driver

Weight conscious people Diet coke Confident, mature and risk taking people with Thums up masculine attitude Silver bullet

Sub brand

Driver

Youngsters, teens and young adults Sprite

Energiser brand

Driver

Girls, youngsters Fanta

Driver

Driver

Limca

Juice lovers Minute maid pulpy orange

Driver

Driver Minute maid lemon

Kids, juice lovers

Sub brand

Maaza

Kids, teenagers

Maaza milky

Sports people, active people, masculine Burn

Iced tea lovers

Co brand

Nestea

Coffee lovers,

Co brand

Georgia gold

Health conscious customers Schweppes

Cash cow brand

Driver

Kinley water

Kinley soda

Market Segmentation Model Market can be segmented along 3 lines-

outlet volume

locality income

channel cluster

TYPES OF OUTLETS:

Grocery: O u t le t w h ic h p r im a r il y e n g age i n r e t a il i n g o f f o o d an d v a r i o u s h o u s e h o ld i t e m s . I t include general household items of daily usages e.g. commodities like flour, rice and branded household items like toothpaste, mosquito coil, soap etc.

E&D: Outlet selling items to eat which are being cooked within outlet. They may have placeof sitting. It includes QSR / Bakery / Mitie store/Restaurant/Bars / Juice / Soft drinks /Ice cream Parlour / Tea Shop etc.

Convenience: Includes outlets which are small stores or shop generally accessible locally. These areoften located along side busy roads. It includes chemist shop, STD booth, Pan Shopsetc.

Marketing Mix

PRODUCT- consists of various brand packs and flavor .Its product strategy promote all brand available in brand pack

PLACE- the distribution channel includes the distribution of agent to distributor to retailer to customer

The 4 P's
PROMOTION- Top line promotion includes T.V ads, banner,celebrity.Bottom line promotion includes promotional schemes,publicity material

PRICE- priced products in the similar bracket as of the major competitors

Brand graphics Logo: The red and white logo has become synonymous with the brand image that quenches thirst and spreads happiness. The bottle: The coca cola products are available in various different sizes:
o o o o o SSRB (standard size returnable bottle) LRB (litter returnable bottle) NRB (no return bottle) or disposable bottle PET 1.5 (1.5 litter plastic bottle) CANS (tin pack 330 ml)

Packing: the Coca cola products are available in different packing:

o 24 regular bottle shell o 6 bottle pack for 1.5 pets o 12 bottles in a pack for disposable bottle o 24 cans in one pack.

Promotional Strategies A promotional strategy is an important element of market strategy. A key ingredientin marketing campaigns consist of a diverse collection of incentive tools, mostly shortt e r m, d e s i g n e d t o s t i m u l a te q u i c k e r o r g r e a t e r p ur c h a s e o f p a r ti c u l a r p r o d u c t s o r services by consumer or trade Getting shelves: They gets or purchase shelves in big departmental stores and display their products in their i n makes their product look more the clear style and which more

a t t r a c t i v e f o r t h e consumers. Eye Catching Position: S a l e s m a n o f t h e c o c a c o l a c o m p a n y positions their freezers and their products in eye -

catching positions. Normally they keep the freezers near the entrance of the stores. Sale Promotion: Company also does sponsorships with different college and schools cafes and sponsors their sports events and other extra curriculum activities for getting market share. UTC Scheme: UTC mean under the crown scheme, coca cola often do this type of scheme and they offer very handy prizes in it. Like once they offer bicycles, caps, tv sets, cash prizes etc. This scheme is very much popular among children. Distribution Channels: Coca Cola Company makes two types of selling: Direct selling and Indirect selling.

Direct Selling: In direct selling they supply their products in shops by using their own transports. They have almost 450 vehicles to supply their bottles. In this type of selling company have more profit margin.

Brand identity prism Physique Soft drink giant, curvy bottle Personality Creative, dynamic, sporty , strong

Brand Identity
Relationship

prism of Coca Cola

Culture

Reflection Extrovert, optimistic

Self image Togetherness, friendly

Physique Soft drink giant, circular logo

Personality Young, innovative, fun

Brand Identity
Relationship Emotionally attached, next generation drink

prism of Pepsi

Culture Young, vibrant, dynamic

Reflection Youthful, reliable

Self image Cool, smart, upbeat