COMPARATIVE MARKET ANALYSIS THROUGH

EACH DEALER SURVEY AND WEAK OUTLET

PLANNING.


Jamia Hamdard
New Deli

S!"mi##ed "$%
Ra&e' K!mar Si()


1
ACKNOWLEDGEMENT
In the pursuit of greater knowledge, a greater understanding of the market & the
corporate world, distribution channels and the supply of Pepsi, I had to take some
precious time out of the busy schedules of our project guide & officials of the Company.
Without their help, such a thorough study would not hae been possible. !hus I would
like to e"tend my thanks to the people concerned who hae been the stepping stones to
success.
I would firstly like to thank Mr. Ni#i( *a(dari + Mr. Ra,e' S!,la, #$C%s
&ucknow for guiding me through the whole process and for being there at times when I
needed their support. !hey hae enabled me to hae a ision and the driing energy to
fulfill my aims.
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TA*LE O- CONTENTS
Executive Summary
1. Objective of the Study
2. Limitation of the project
3. Methodology
4. Abtract
!. "epi# Miion
$. %ompany &ac'ground
(. Mar'et Share ) &rand Ambaador
*. "epi Logo
+. "epi# ,itory
1-. "epi .n .ndia
11. %ontent of "epi
12. /ype Of "epi
13. Some Ad ) Statitic
14. S0O/ Analyi
1!. "orter# 1ive force model
1$. 23S 1ormat
1(. 0O" 3ata
1*. 0O" Summary
1+. "roblem ited during 4oute Survey and 3ealer Survey
2-. 4ecommendation
21. 4eference

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E.ECUTIVE SUMMARY
!he title of the project is Comparatie )arket #nalysis through *ach $ealer +urey and
Weak ,utlet Planning. #s we know that there is a high competition in the market
between Pepsi and Coca-Cola in the market and none of the two want to loose
the opportunity in the market, this project of *ach $ealer +urey is ery important
keeping in iew the competition in the market. *ach $ealer +urey helps the company in
identifying the status of Pepsi and Coca Cola at arious outlets in the market. It helps to
find out the relatie share in the market and also the status of Cooling e.uipments and
+ignage at the outlets. Weak ,utlet Planning helps the organi/ation in identifying the
,utlets in the market with low share and identifying the reason for low share. 0efore I
could start my project I had to go on some route dries to actually understand the soft
drink market. It also helped to know how Pepsi does its marketing and +ales.
!he Project was diided into three Phases.
1nder the 1
st
phase I was gien the task to work on the *ach $ealer +urey Project as the
group leader along with twenty of my group members. 1nder the *$+ Project we got
the task to prepare a $ealer surey report on all outlets in the city.
1nder the '
nd
Phase of my project I was gien the task to identify the weak outlets in the
market and then find out the reasons for low share at these outlets.
1nder the third Phase I hae to go to the market along with the respectie Customer
*"ecutie of the specified 2oute to improe the share at the outlet by soling the problem
of the outlet owners.
3
/. O*JECTIVES O- STUDY
0order objectie of the project was to prepare an *ach $ealer +urey 2eport and a
2eport on Weak ,utlet Plan which could help the organi/ation in formulating the future
inestment plan in the market.
*$+ 2eport is the basic document on the basis of which the Company plans its
inestment in different fields to improe the share in the market.
W,P 2eport is the identification of Weak outlets in the market where the share of Pepsi
is relatiely less than its Competitors.
.
4
0 1LIMITATIONS O- THE PROJCT
5ollowing were the major limitations of the project,
617 ,utlet owners not haing e"act information on there purchases during the year.
6'7 )any outlets purchasing from 5at $ealers in the market at less rate than that of the
company.
6(7 )any outlets haing Cooling *.uipment problem.
637.&ack of +ignage at arious outlets.
8
21METHODOLOGY
6#7.We chose .uestionnaire method 6*$+ +heet and W,P +heet7 for date collection.
607. !he data collected was primary in nature.
607. $ealer +urey method for data collection.
6C7. 5or analysis of data we used *9C*&.
:
31A*STRACT
#ny drink that is not hard li.uor can be referred to as a ;soft drink;< howeer, in this piece
;soft drink; refers to carbonated, sweetened beerages also known as soda or soda pop.
Why did people want to drink carbonated water= Well, because bubbling water was
e.uated with health< mineral baths had been popular at least since the times of the ancient
2omans. If the waters were good to soak in, the reasoning went, how much better for you
to drink.
+cientists searched for the mysterious cause of these bubbles, and then, determining
carbon dio"ide to be the answer, sought a way to infuse plain water with this gas. !hanks
to the efforts of such scientists as >oseph Priestley and >ohn ?ooth, this feat was
accomplished. Carbonated water was for sale by the end of the 1:@@s< this is how
pharmacies, which will proe important later, get into the picture, by being the supplier
of the health-inducing carbonated water.
!he urge to flaor this sparkling water came .uickly. #nd the ability to add flaors was
keeping pace< in 1:A3 citric acid was deeloped from lemon juice. 0y 1A((, carbonated
lemonade was for sale in *ngland. 5orty years later, ginger ale became a popular drink<
clear, rather than cloudy like ginger beer, it was a more attractie beerage. &emon;s
+uperior +parkling Binger #le has the distinction of receiing the first 1+ trademark
registration in 1A:1.
A
5our years later, in 1A:4, pharmacist Charles Cires and his bride spent their honeymoon
at a ?ew >ersey farm, where they enjoyed an herb tea made largely of wild roots. !he
ne"t year, after e"perimenting with these flaors on his own, he offered his DCires 2oot
0eer *"tractD at the Philadelphia 5air. 0y 1AA8, it was aailable in bottles.
1AA8 is a key year for soft drink history for other reasons, tooE Coca-Cola, $r Pepper, and
)o"ie were all introduced to the pharmacy-going public.
>acob;s Pharmacy of #tlanta, Beorgia, became the debut site for Coca-Cola. Conceied
of as a headache remedy by pharmacist >ohn Pemberton, the syrup was sold on a trial
basis to William Fenable, the counterman at >acob;s. Fenable added a shot of the syrup,
made in part from the leaes of the coca plant and the caffeine-laced juice of the kola nut.
In his first year of business, Pemberton made twenty-fie dollars, which didn;t .uite pay
for the almost seenty-fie dollars he spent in adertising.
)o"ie, which rials Coca-Cola in these early years, was the drink with a difference--the
main ingredient is not carbonated water, but rather, the herb gentian. It;s an ac.uired
taste.
!he ,ld Corner $rug +tore in Waco, !e"as, introduced the artificially flaored black
cherry drink called $r. Pepper, the DGing of 0eerages, 5ree from CaffeineD. 6Caffeine
would be added later.7 !here are, according to the $r. Pepper )useum, fifteen stories that
tell who deeloped it and how the drink was named. )ost agree that either 2obert
&a/enby, a chemist, or Wade )orrison, the pharmacy owner, created the drink. Whateer
the facts, the two .uickly became partners in the beerage business. !he name allegedly
H
Comes from Confederate #rmy doctor Charles Pepper, the man that refused to permit
)orrison to marry )iss Pepper.
# few years later, Clic.uot Club Binger #le, named for famous Champagne, became the
first nationally adertised soft drink.
In 1H@(, Pepsi-Cola, created as a cure for dyspepsia, went into business. 2oyal-Crown
Cola debuted in Columbus, Beorgia in 1H@4. Canada $ry Binger #le was introduced in
1H@A by >ohn )c&aughlin. Its appeal was largely in its pale color< earlier ginger ales had
been dark.
World War ,ne nearly shut down this burgeoning industry< the 1+ 5ood #dministration
deemed it inessential, especially in the face of the seere sugar shortages. Prohibition
61H'@-1H((7 gae it a big push, howeer. ,nce hard li.uor was no longer legally
aailable, consumers that desired a flaorful drink increasingly chose these carbonated
beerages. In addition, the adent of si"-packs of bottled sodas helped the drink find a
place at home, as opposed to only being consumed at the local pharmacy or restaurant.
!he industry was dealt a double blow when Prohibition ends since the $epression was in
full swing. )any smaller companies west out of business. :-1p, which had debuted in
1H'H as &ithiated &emon, began to adertise itself as a great mi"er for hard li.uor in
1H(( when Prohibition ended. Canada $ry followed suit in 1H(8, weathering the crisis by
deeloping !om Collins mi", tonic water, and club soda.
1@
1H(( saw other deelopments--Coca-Cola began marketing a new fountain mi"er that
combines the syrup and water automatically, proiding a uniformity of flaor that
indiidual soda fountains couldn;t achiee. Pepsi-Cola began selling its beerage in 1'-
ounce bottles, as opposed to the 8- and A-ounce bottles preferred by the competition. In
1H(H, this lead to Pepsi;s most famous jingleE
Pepsi Cola hits the spot,
I!wele full ounces, that;s a lot
!wice as much for a nickel, too
Pepsi-Cola is the drink for you.J
$uring World War II, the 1+ 5ood #dministration limited the access to soft drinks to the
general public. Coweer, the soldier;s morale wasn;t allowed to suffer so their access to
the sweet drinks was guaranteed by the building of oerseas plants.
!he 1H8@;s saw the beginnings of the diet drink industry. ?o-Cal Binger #le was the first
diet soft drink, and was created in 1H4' by Girsch 0eerages of 0rooklyn, ?ew Kork.
+accharine-sweetened, it was designed for diabetics, not dieters. Its distribution remains
local. In 1H8', $iet-2ite Cola, from the 2oyal Crown Company, was the first drink sold
nationwide. It was sweetened with cyclamates. Coca-Cola introduces !ab the following
Kear. $iet Pepsi went on the market in 1H84. In the 1HA@s, manufacturers started using
aspartame, under the trade name ?utra-+weet. Consumers liked the more ;natural; taste.
11
In the 1HA@s, caffeine-free ersions of soft drinks became more popular as well. >olt
Cola, in the late 1HA@s, reacted as a backlash moement, proclaiming that it has twice the
caffeine as regular colas. $espite popularity on college campuses, it neer became the
household name that the more established companies enjoy. In the 1HH@s, clear ersions
of popular soft drinks enjoyed a brief fad. 5ruit juice based soft drinks began to be more
popular.
!he soft drink industry has grown steadily since its beginnings, and has weathered
economic downturns, wars, and the health moement< through constant adaptation and
market research, they anticipate and meet the public;s eer-changing taste.
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41 PEPSI5S MISSION
!o be the world%s premier Consumer Products Company focused on conenient 5oods
and 0eerages. We seek to produce healthy financial rewards to inestors as we proide
opportunities for growth and enrichment to our employees, our business partners and the
community in which we operate and in eerything we do, we strie for honesty, fairness
and integrity.

1(
61 PEPSI5S *ACKGROUND
Pepsi-Cola was first made in ?ew 0ern, ?orth Carolina in the 1nited +tates in the early
1AH@s by pharmacist Caleb 0radham. ,n #ugust 'A, 1AHA, D0rad;s drinkD was changed
!o DPepsi-ColaD and later trademarked on >une 18, 1H@(. #s Pepsi was initially intended
to cure stomach pains, 0radham coined the name Pepsi from the condition dyspepsia
6+tomachache or indigestion7. It was made of carbonated water, sugar, anilla, rare oils,
and kola nuts. Whether the original recipe included the en/yme pepsin is disputed.
In 1H@(, 0radham moed the bottling of Pepsi-Cola from his drugstore into a rented
Warehouse. !hat year, 0radham sold :,H8A gallons of syrup. !he ne"t year, Pepsi was
sold in si"-ounce bottles and sales increased to 1H,A3A gallons. In 1H@4, Pepsi receied its
first logo redesign since the original design of 1AHA. In 1H@8, the logo was changed again.
In 1H@H, automobile race pioneer 0arney ,ldfield endorsed Pepsi-Cola in newspaper ads
as D# bully drink...refreshing, inigorating, a fine bracer before a raceD. In 1H'(, PepsiCo
went bankrupt due to high sugar prices as a result of World War I, assets were sold and
2oy C. )egargel bought the Pepsi trademark. *ight years later, the company went
0ankrupt again, resulting in a reformulation of the Pepsi-Cola syrup formula. In the
5ollowing years, the drink gained in popularity and in 1H(3, debuted the 1'-ounce drink.
In 1H83, the $iet Pepsi ariation of the drink debuted, being the 1nited +tates;s first
national diet soft drink.
13
In 1HA@, Pepsi introduced the Pepsi Challenge marketing campaign where PepsiCo set up
a blind tasting between Pepsi-Cola and rial Coca-Cola. $uring these blind taste tests the
majority of participants picked Pepsi as the better tasting of the two soft drinks. Pepsi
took great adantage of the campaign with teleision commercials reporting the test
results to the public.
In the mid-1HH@s, Pepsi launched the highly successful Pepsi +tuff strategy, its largest
marketing program eer. In its first year, Pepsi +tuff significantly outperformed Coke;s
much-anticipated #tlanta ,lympic +ummer with growth ( times larger than Coke;s and '
points of share gained by Pepsi. Pepsi +tuff built consumer brand loyalty by allowing
people to collect Pepsi Points from packages and cups and redeem them for high-.uality
merchandise and uni.ue e"periences. 0ased on Pepsi +tuff;s success, the company
e"panded it to include )ountain $ew and into many international markets. PepsiCo
continued and e"panded Pepsi +tuff for many years. Promo )aga/ine listed 18 D#geless
WondersD campaigns that Dhelped redefine promotion marketing.D Included for '@@' is
While some claim that Pepsi tastes identical to Coca-Cola, others say they can detect a
difference. In the past, the difference in taste between Pepsi and Coca-Cola;s Coke was
een greater than it is today. When the Pepsi taste became more popular, Coca-Cola
adapted their drink to be closer to the #merican taste of Pepsi 6?ew Coke7. #lthough
Pepsi claimed this a ictory for their brand of cola, Coca-Cola soon reerted because,
14
while testing showed the taste of the new Coke was better, consumers preferred Coca-
Cola to stay the same. Coke outsells Pepsi in the 1+ oerall because Coke is sold
e"clusiely in more locations, such as restaurants that sell Coke, but not Pepsi. In
locations where Pepsi and Coke are sold side-by-side 6such as +upermarkets and
Conenience +tores7, Pepsi generally outsells Coke in the 1+.
18
71 MARKET SHARE + *RAND AM*ASODARS IN INDIA
,ne of the most isible battle fronts in India;s cola wars is celebrity endorsements, and
Pepsi and Coke hae rolled out the biggest categories of celebrities in the country, film
stars and cricketers, signed up as brand ambassadors at humongous cost. !heir well-
known faces are splashed on billboards and newspaper
pages, een as teleision spots roll out by the do/ens featuring the stars. !he Coke-Pepsi
rialry is so intense that there is a fight to win ad space at eery shop, bus-stop stall and
roadside eatery. *ach transnational company marks out its territory in either bright red or
blue, the colors associated with the two brands. !he pri/e they strie for is large, and
growingE India;s soft-drink market is estimated to be worth more than 1+L8 billion.
!op film stars Gareena Gapoor, +hahrukh Ghan, #ishwarya 2ai, #mitabh 0achchan,
2ani )ukherjee, Priyanka Chopra, #kshya Gumar, #amir Ghan and cricketers 2ahul
$raid, +achin !endulkar, Firender +ehwag, Irfan Pathan and many more hae been
offered contracts that are sometimes worth more than their earnings from films or cricket.
#ccording to reports, #amir Ghan;s contract for Coca-Cola is worth more than L3 million
oer three years. 5or that money, #amir sets aside a few days eery year for the
commercials. +hahrukh Ghah, who rials #amir in the moies, charges a similar amount
for Pepsi, while among the ladies, #ishwarya 2ai leads with more than L' million.
Coca-Cola is reported to hae roped in the ma"imum number of 14 celebrities, followed
by eight for Pepsi. ,ther brands such as !hums 1p 6Coca-Cola;s local brand7 hae three,
while :1p 6a Pepsi brand7 has Kana Bupta and, this year, the hot )allika +herawat.
1:
!he health-drinks business is also witnessing plenty of churn, with the segment growing
at a robust '@-'4M in the past few years, compared with less than AM for carbonated
drinks in the past couple of years. !he non-carbonated beerage market is estimated to be
worth more than L'4@ million 6in urban areas7. #ccording to a recent #C?ielsen study,
among fruit juices, $abur;s 2eal is the market leader with 8@M share, followed by Pepsi;s
!ropicana 6((M7. In the fruit-based drinks category, Coca-Cola;s )aa/a is the leader,
followed by Parle;s 5rooti and PepsiCo;s +lice. #ccording to reports, Coca-Cola may
soon test-market its global fruit-juice brand )inute )aid, as the diet ersions of the fi//y
drinks hae not taken off.
+urprisingly, perhaps, one of the biggest beneficiaries of this growth is the Indian farmer,
because of the integration of backward linkages by cola companies to purchase processed
fruit. While Coca-Cola is working with farmers in #ndhra Pradesh and )aharashtra,
PepsiCo has tied up with Punjab #gri *"port Corp, a state-owned enterprise, to cultiate
citrus fruits, particularly oranges, for its !ropicana brand.
!he e"pansion potential for this business is immense, gien that India is the second-
largest producer of fruit in the world, but only 3M is processed because of storage and
yield problems. In 0ra/il and the 1nited +tates, :@M of produce is processed, while 4@M
is in Israel and A(M in )alaysia. +tructural changes in agriculture are imperatie, as
more than 8@M of India;s billion-plus population depend on farm produce for their
lielihoods, while the contribution of the sector to gross domestic product is less than
'4M.
1A
#s far as marketing is concerned, howeer, the real action is undoubtedly among the
carbonated drinks. Commercials costing more than L'4@,@@@ are shot oernight to
coney the right message. 5or e"ample, the lemon-lime soft drink +prite, a Coca-Cola
product, released a spoof of a Pepsi campaign within an hour, while Pepsi hit back within
a week with its takeoff on Coke;s D!hande ka !adkaD commercials featuring #amir.
#ccording to some reports, the fi//y drinks hae splurged more than L1@ million on
adertising campaigns in one month, though the companies deny such e"penditures. It is
usual for cola companies to spend L' million to L( million for a new campaign. !hree
years back, a fierce price battle ensued when Coca-Cola India launched small '@@-
milliliter cans priced at 2s4 611 cents7. Pepsi responded by lowering the price of its
(@@ml can from 2sA to 2s8.
!he cola companies hae reason to feel that the Indian market remains largely untapped.
India;s per capita consumption of cola is .uite low at 1@ serings per year, while
Pakistanis and +ri &ankans drink '4 and (@, respectiely.
!he adertising strategies hae changed oer the years, moing on from print ads to !F
commercials to promotions at restaurants, eents, the Internet, contests, and tie-ups with
shops and moie theaters. India;s total adertising market 6print plus !F7 is more than
L'.4 billion, with print ads accounting for 34M of the total.
#ccording to the #de" India 2eport, in terms of !F adertising the carbonated-soft-
drinks category grew by 4@M in '@@4 oer '@@3, with the major share going to Pepsi.
Coweer, print adertising in '@@4 dipped by '(M from '@@3. Pepsi continued to be the
1H
highest spender, followed by !hums 1p, Coca-Cola, $iet Pepsi and )irinda &emon 6a
PepsiCo brand7. ,n teleision as well, Pepsi is the highest spender, followed by Coca-
Cola, )ountain $ew, !hums 1p, :1p, )irinda ,range, +prite, $iet Pepsi, &imca 6Coca-
Cola brand7 and )irinda 0atman 0last. !hums 1p was the largest spender in restaurants.
While Pepsi has shown a preference for promotional commercials linked to sponsored
programs, Coca-Cola has stuck more to pure ads. ,nline campaigns are picking up, too.
5or Pepsi;s ,ye 0ubbly promotion, Kahoo charged L'4,@@@ for two days of online
adertising.
!he cola brands hae soldiered on despite charges by a prominent enironmental
organi/ation, the Center of +cience and *nironment, that Pepsi and Coca-Cola sold in
India contain pesticide residues in amounts 3@-4@ times the prescribed *uropean 1nion
norms, and assorted other controersies such as allegations of e"cessie leels of
cadmium in waste from a Coke factory. #ny anti-cola story has a bandwagon effect, as it
is politically correct in India to be anti-multinational-corporation and anti-#merican.
In fact, the problem of pesticide contamination of foodstuffs is hardly limited to Pepsi
and CokeE irtually eerything that Indians eat and drink, from egetables to eggs to
milk, carries undesirable chemicals at e.ual or greater concentrations, because of
uncontrolled use of fertili/er and pesticide by farmers.
!his problem will take decades to sole, but with India;s most beloed film stars
endorsing carbonated drinks, keeping Indians off them may well be impossible.
'@
Coke still outsells Pepsi in almost all areas of the world. +audi #rabia and the Canadian
proinces of Prince *dward Island, ?ewfoundland and &abrador, ,ntario and Nuebec are
some of the few e"ceptions.
0y most accounts, Coca-Cola was India;s leading soft drink until 1H:: when it left India
after a new goernment ordered the company to turn oer its secret formula for Coca-
Cola and dilute its stake in its Indian unit as re.uired by the 5oreign *"change
2egulation #ct 65*2#7. In 1HAA, Pepsi gained entry to India by creating a joint enture
with the Punjab goernment-owned Punjab #gro Industrial Corporation 6P#IC7 and
Foltas India &imited. !his joint enture marketed and sold &ehar Pepsi until 1HH1 when
the use of foreign brands was allowed< Pepsi bought out its partners and ended the joint
enture in 1HH3. In 1HH(, Coca-Cola returned in pursuance of India;s &iberali/ation
policy. In '@@4, Coca-Cola and Pepsi together held H4M market share of soft-drink sales
in India. Coca-Cola India;s market share was 8@.HM. ,thers claim that due to rumors of
the use of cocaine, Coke was banned for a long time in India and recently the ban was
lifted, howeer, Pepsi had maintained a commanding market share.
#ccording to Consumer 2eports, in the 1H:@;s, the rialry continued to heat up the
market. 2esearch proed that Pepsi is preferred oer Coke. !he way that they proed this
was by blind taste tests that were conducted in stores. !hese tests were called DChallenge
0ooths.D !he sales of Pepsi started to climb, and Pepsi kicked off the DChallengeD across
the nation.
)ore importantly, Pepsi outsells its rial in grocery and conenience stores in the 1.+.
6regarded as an indicator of consumer preference7, with Coca-Cola;s dominance in
'1
e"clusie restaurant, moie theater, amusement park, college, and stadium deals giing
Coke the oerall sales adantage. In the 1.+., Pepsi;s total market share was about (1.:
percent in '@@3, while Coke;s was about 3(.1 percent.
In 2ussia, Pepsi once had a larger market share than Coca-Cola. Coweer, Pepsi;s
dominance in 2ussia was undercut as the Cold War ended. Pepsi had made a deal with
the +oiet 1nion for scale production of Pepsi in 1H:3. When the +oiet 1nion fell apart,
Pepsi, was associated with the old +oiet system, and Coca Cola, just newly introduced
to the 2ussian market in 1HH', was associated with the new system. !hus, Coke rapidly
captured a significant market share away from Pepsi that might otherwise hae needed
years to build up. 0y >uly '@@4, Coca-Cola enjoyed a market share of 1H.3 percent,
followed by Pepsi with 1( percent.
#ccording to Consumer 2eports, the oerall adertising of the two companies still
inole !F commercials that endorse the image of youth, beauty, family togetherness,
fun, pleasure, celebrity and patriotism. !hese components are e"pected to bring posities
to the company so that the rialry will continue on.
81 PEPSI LOGOS
''

65rom 1H@8-1H(H7 65rom 1HH1-1HHA.7
65rom 1HHA-'@@87. 6Pepsi +tuff represented a major assault in the Cola Wars7
'(
91 Pe:'iC;<' Hi'#;r$ Timeli(e

'3

/=1Pe:'i i( I(dia
0y most accounts, Pepsi gained entry to India in 1HAA by creating a joint enture with the
Punjab goernment-owned Punjab #gro Industrial Corporation 6P#IC7 and Foltas India
&imited. !his joint enture marketed and sold &ehar Pepsi until 1HH1 when the use of
foreign brands was allowed< Pepsi bought out its partners and ended the joint enture in
'4
1HH3. ,thers claim that firstly Pepsi was banned from import in India, in 1H:@, for
haing refused to release the list of its ingredients and in 1HH(, the ban was lifted, with
Pepsi arriing on the market shortly afterwards. !hese controersies are a reminder of
DIndia;s sometimes acrimonious relationship with huge multinational companies.D Indeed,
some argue that Coke and Pepsi hae Dbeen major targets in part because they are well-
known foreign companies that draw plenty of attention.D
In '@@(, the Centre for +cience and *nironment 6C+*7, a non-goernmental
organi/ation in ?ew $elhi, said aerated waters produced by soft drinks manufacturers in
India, including multinational giants PepsiCo and Coca-Cola, contained to"ins including
lindane, $$!, malathion and chlorpyrifos O pesticides that can contribute to cancer, a
breakdown of the immune system and cause birth defects. !ested products included
Coke, Pepsi, +een 1p, )irinda, 5anta, !humbs 1p, &imca, +prite. C+* found that the
Indian-produced Pepsi;s soft drink products had (8 times the leel of pesticide residues
Permitted under *uropean 1nion regulations< Coca Cola;s (@ times. C+* said it had
tested the same products in the 1+ and found no such residues. Coweer, this was the
*uropean standard for water, not for other drinks. ?o law bans the presence of pesticides
in drinks in India.
Coca Cola and PepsiCo angrily denied allegations that their products manufactured in
India contained to"in leels far aboe the norms permitted in the deeloped world. 0ut an
Indian parliamentary committee, in '@@3, backed up C+*;s findings and a goernment-
appointed committee is now trying to deelop the world;s first pesticide standards for soft
drinks. Coke and PepsiCo opposed the moe, arguing that lab tests aren;t reliable enough
'8
to detect minute traces of pesticides in comple" drinks. ,n $ecember :, '@@3, India;s
+upreme Court ruled that both Pepsi and competitor Coca-Cola must label all cans and
bottles of the respectie soft drinks with a consumer warning after tests showed
unacceptable leels of residual pesticides.
0oth companies continue to maintain that their products meet all international safety
standards without yet implementing the +upreme Court ruling. #s of
'@@4, Coke and Pepsi together hold H4M market share of soft-drink sales in India.
Pepsi has also been alleged to practice Dwater piracyD due to its role in e"ploitation of
ground water resources resulting in scarcity of drinking water for the naties of
Pudussery panchayat in the Palakkad districts in Gerala, India. &ocal residents hae been
pressuring the goernment to close down the Pepsi unit in the illage.
Coca-Cola controlled the Indian market until 1H::, when the >anata Party beat the
Congress Party of then Prime )inister Indira Bandhi. !o punish Coca-Cola;s principal
bottler, a Congress Party stalwart and longtime Bandhi supporter, the >anata goernment
demanded that Coca-Cola transfer its syrup formula to an Indian subsidiary 6Chakraarty,
3(7. Coca-Cola backed and withdrew from the country. India, now left without both
Coca-Cola and Pepsi, became a protected market. In the meantime, India;s two largest
soft-drink producers hae gotten rich and la/y while controlling A@M of the Indian
market. !hese domestic producers hae little incentie to e"pand their plants or deelop
the country;s potentially enormous market . +ome analysts reason that the Indian market
may be more lucratie than the Chinese market. India has A4@ million potential
customers, 14@ million of whom comprise the middle class, with disposable income to
spend on cars, FC2s, and computers. !he Indian middle class is growing at 1@M per
':
year. !o obtain the license for India, Pepsi had to e"port L4 of locally-made products for
eery L1 of materials it imported, and it had to agree to help the Indian goernment to
initiate a second agricultural reolution. Pepsi has also had to take on Indian partners. In
the end, all parties inoled seem to come out aheadE Pepsi gains access to a potentially
enormous market< Indian bottlers will get to sere a market that is e"panding rapidly
because of competition< and the Indian consumer benefits from the competition from
abroad and will pay lower prices. *en before the first bottle of Pepsi hit the sheles,
local soft drink manufacturers increased the si/e of their bottles by '4M without raising
costs.
-r;m J;i(# Ve(#!re #; -!ll$1Ow(ed S!"'idiar$ %
Pepsi is no longer a joint enture company with its Indian partners. !aking full adantage
of liberalised policies, it has taken full control of Pepsi 5oods. In 1HH3, Pepsi made a
offer to both Foltas and P#IC to buy their e.uity at ;attractie; terms. Foltas sold all its
shares to Pepsi while P#IC, being a public enterprise, was forced to pull out and now it
holds less than 1 percent of the total e.uity in Pepsi 5oods &td. Instead of taking strict
action against Pepsi for not following its commitments, the Indian goernment has gien
more concessions to it in the post-liberalisation period. 5or instance, it has allowed Pepsi
to increase its turnoer of beerages component to beyond '4 percent, and Pepsi is also
no longer restricted by its commitment to e"port 4@ percent of its turnoer. 2ecently the
goernment also allowed PepsiCo to set up a new company in India called PepsiCo India
Coldings Pt.&td, a wholly owned subsidiary of PepsiCo International. +urprisingly, the
new company is also engaged in beerage manufacturing, bottling and e"ports actiities
as Pepsi 5oods &td. #ll the new inestments by the PepsiCo International hae been
'A
channelised through this new enture. It now handles 'A bottling plants with a sales
turnoer of 2s 4@@ crores which is higher than Pepsi 5oods;s turnoer of 2s.(:4 crore in
1HH8. 6!he 5inancial *"press, #pril '1, 1HH:7. #lthough the financial performance of
both these companies in India has not been creditable so far, with total accumulated
losses close to 2s.(4@ crore 6e"cept small surplus in 1HH87, yet it has been successful in
achieing significant market share and brand royalty in India. !he company in recent
years has not only bought oer bottlers in different parts of India but also bought $ukes,
a popular soft-drink brand in western India to consolidate its market share. It has also
shrewdly consolidated its position through aggressie marketing and adertising in India.
#ccording to sureys conducted by many market research agencies, Pepsi now holds
oer 3@ percent share in Indian soft drink market. In 1HH4 alone, the company;s beerage
business grew 4@ percent, well ahead of the market which e"panded by '@ percent.
#nother important recent shift in Pepsi;s marketing strategy has been its focus on Cola
oer other non-Cola brands. DWe hae single- mindedly focused on brand PepsiD admits
2ishi, Fice-President, )arketing, and Pepsi. 60usiness India, >anuary 14-'A, 1HH87. #t
the international leel, PepsiCo International has been focusing more on India where the
consumption of soft drinks is e"pected to increase many-fold which is only three ounces
per person now as compared to '@@ ounces in *urope and oer (@@ ounces in ?orth
#merica. 0ut, at the same time it is not reali/ed that there is a ast difference between the
purchasing power of an aerage Indian and ?orth #merican as it takes an Indian 1.4
hours of work to be able to buy a bottle of Pepsi whereas for a ?orth #merican, it takes
less than 4 minutes. !his e"perience of eight years clearly shows that Pepsi, totally
preoccupied with selling soft drinks in India, has broken promises. !he responsibility of
'H
implementation of commitments cannot be left to Pepsi alone. ,ne should e"pect the
state machinery to interene and enforce these commitments on Pepsi. +urprisingly, there
is a total silence on the part of state machinery.




//1C;(#e(#' ;> Pe:'i
(@
!he Pepsi-Cola drink contains basic ingredients found in most other similar drinks
Including carbonated water, high fructose corn syrup, sugar, colorings, phosphoric acid,
caffeine, citric acid and natural flaors. !he caffeine free Pepsi-Cola contains the same
ingredients but does not include any caffeine.


?
/01TYPES O- PEPSI
617Cr$'#al Pe:'iE $iscontinued clear ersion
6'7Die# Pe:'iE &ow-calorie ersion of Pepsi
6(7Pe:'i AME Contains more caffeine than a regular Pepsi and marketed as a morning
drink. ?o longer produced.
(1
637Die# Pe:'i AME +ugar-free ersion of Pepsi #), and introduced in 1HA:. ?o longer
produced.
647Pe:'i *l!eE a blue colored, fruity ariety
687Pe:'i Ca::!@@i(;E Cappuccino flaored sold in *astern *urope.
6:7Pe:'i Ed)eE contains half the carbohydrates, calories and sugars of a normal Pepsi,
and
is flaored by +plenda. Introduced in '@@3, and discontinued in '@@4. It was featured on
an episode of !he #pprentice ' in which teams had to design a prototype bottle.
6A7Pe:'i AdAa(#a)eE the 5rench name for Pepsi *dge, sold e"clusiely during '@@4 in
the
proince of Nuebec.
6H7Pe:'i -ireE a limited edition ariety which is sold in Buam and )alaysia. Pepsi 5ire is
a cinnamon flaored cola. 6see also the Pepsi )a" Punch cinnamon edition for Christmas
'@@47
61@7Pe:'i -ree 6now known as Caffeine-5ree Pepsi7
6117Die# Pe:'i -ree 6now known as Caffeine-5ree $iet Pepsi7
61'7Pe:'i H;lida$ S:i@eE a limited edition ariety which the company began selling
?oember 1, '@@3 in the 1.+.#. for an eight-week period 6it has not been sold since7. It
is flaored with a seasonal finish of ginger and cinnamon.
61(7Pe:'i I@e Pe:'i wi# a( I@$ Mi(# >laA;r. +old in Buam and )alaysia.
6137Pe:'i I@e Cream 6only aailable in 2ussia7 Gnown as DPepsi FanillaD in the 1+
6147Pe:'i K;(aE a short-lied product that was market tested in the &ehigh Falley and
Philadelphia, Pennsylania areas between 1HH3 and 1HH8. # mi" of Pepsi-Cola and
coffee, it is said to hae tasted more like coffee than cola.
('
6187Die# Pe:'i K;(a
61:7Pe:'i La##e
61A7Pe:'i Li)#E &emon-flaored $iet Pepsi sold in the 1HA@s
61H7Pe:'i LimeE with lime flaor added, introduced onto the market in the spring of
'@@4.
6'@7Die# Pe:'i Lime
6'17Pe:'i MaB
6''7Pe:'i MaB Ca::!@i(;E ,nly aailable in 5rance, 5inland, ?orway and the 1G.
6)arketed as Pepsi )a" Coffee Cino in the 1G.7
6'(7Pe:'i MaB C;;l lem;(
6'37Pe:'i MaB P!(@ 6a dark red Pepsi cola with Cinnamon and Binger - limited
edition in the 1G market for Christmas '@@4 - aailable +eptember to $ecember7
6'47Pe:'i MaB Twi'#
6'87Pe:'i MaB C;>>ee Ci(; 6a cappuccino flaored arient currently being sold in the
1G7
6':7Pe:'i NE.E # /ero calorie Pepsi 6sold in >apan7.
6'A7Pe:'i ONEE #n alternatie to $iet Pepsi, with one calorie.
6'H7Pe:'i Ra)i() Ra':"err$
6(@7Pe:'i Sam"aE Pepsi with troptical flaors
6(17Pe:'i Si
6('7Pe:'i S#raw"err$ *!r'#
6((7Pe:'i Tari,E a mi" between coffee and cola. Currently, it;s only aailable in
)alaysia
((
for )K2 1.:@ a bottle.
6(37Pe:'i Tr;:i@al Cill
6(47Pe:'i Twi'#E a lemon flaored ariety
6(87Die# Pe:'i Twi'#
6(:7Pe:'i Twi'#C; a(d Die# Pe:'i Twi'#C; +old during summertime in 0ra/il, it;s a
Pepsi
with a lemon flaor stronger than regular Pepsi !wist. D!wistPoD, in portuguese, is the
aumentatie of D!wistD.
6(A7Pe:'i Va(illaE 2eleased in the 1.+. in '@@(, it is Pepsi;s answer to Fanilla Coke.
Contains anilla e"tract as well as both natural and artificial flaors.
6(H7Die# Pe:'i Va(illa
63@7Pe:'i Wild Cerr$E a cherry flaored ariety, introduced in 1HAA. ,riginally called
DWild Cherry PepsiD, its name was changed along with the formula in '@@4.
6317Die# Pe:'i Wild Cerr$
63'7Pe:'i .% contains more caffeine than regular Pepsi, and also contains guaranine. It is
similar to other energy drinks on the market 62ed 0ull, F, etc.7
63(7Pe:'i .L


/21SOME ADS + STATISTICS
(3

+hahrukh Ghan I!he Ging of 0ollywoodJ is one of the brand ambassadors of Pepsi India
s
(4

(8
/31SWOT ANALYSIS
+W,! analysis is a basic, straightforward model that proides direction and seres as a
basis for the deelopment of marketing plans. It accomplishes this by assessing an
organi/ations strengths 6what an organi/ation can do7 and weaknesses 6what an
organi/ation cannot do7 in addition to opportunities 6potential faorable conditions for an
organi/ation7 and threats 6potential unfaorable conditions for an organi/ation7. +W,!
analysis is an important step in planning and its alue is often underestimated despite the
simplicity in creation. !he role of +W,! analysis is to take the information from the
enironmental analysis and separate it into internal issues 6strengths and weaknesses7 and
e"ternal issues 6opportunities and threats7. ,nce this is completed, +W,! analysis
determines if the information indicates something that will assist the firm in
accomplishing its objecties 6a strength or opportunity7, or if it indicates an obstacle that
must be oercome or minimi/ed to achiee desired results 6weakness or threat7
6)arketing +trategy, 1HHA7.
!he internal and e"ternal situation analysis can produce a large amount of information,
much of which may not be highly releant. !he +W,! analysis can sere as an
interpretatie filter to reduce the information to a manageable .uantity of key issues. !he
+W,! analysis classifies the internal aspects of the company as strengths or weaknesses
and the e"ternal situational factors as opportunities or threats. +trengths can sere as a
foundation for building a competitie adantage, and weaknesses may hinder it. 0y
understanding these four aspects of its situation, a firm can better leerage its strengths,
correct its weaknesses, capitali/e on golden opportunities, and deter potentially
deastating threats.
Internal #nalysis - !he internal analysis is a comprehensie ealuation of the internal
enironment;s potential strengths and weaknesses. 5actors should be ealuated
across the organi/ation in areas such asE
Company culture, image
(:
,rgani/ational structure
Gey staff
#ccess to natural resources
Position on the e"perience cure
,perational efficiency, capacity
0rand awareness
)arket share
financial resources
*"clusie contracts
Patents and trade secrets
!he +W,! analysis summari/es the internal factors of the firm as a list of strengths and
weaknesses.
*"ternal #nalysis - #n opportunity is the chance to introduce a new product or serice
that can generate superior returns. ,pportunities can arise when changes occur
in the e"ternal enironment. )any of these changes can be perceied as threats
to the market position of e"isting products and may necessitate a change in
product specifications or the deelopment of new products in order for the firm
to remain competitie. Changes in the e"ternal enironment may be related toE
Customers
Competitors
)arket trends
+uppliers
Partners
(A
+ocial changes
?ew technology
*conomic Q Political enironment
!he +W,! analysis summari/es the e"ternal enironmental factors as a list of
opportunities and threats.
SWOT PRO-ILE O- PEPSI
STRENGHTS
/.+trong team of 0rand #mbassadors ,who
are haing tremendous mass appeal.
0.)any ariants 6)irinda ,: 1P, +prite,
!ropicana *tc.7
2.+trong sales and distribution network.
3.+trong brand image.
4.$ynamically continuous innoation of
the product and brand rejuenation R new
ariants 6!hey launched Cappuccino last
year. 7
7.Perceied to hae .uality & world
renowned products 6strong brand
promotion but relatiely lower price which
is a winning combination 7
A.!hey are haing good relation ships with
distributors.
H.Fery strong muscles power in terms of
WEAKNESS
/. Consumption of ' &ts bottles is limited
6Consumed by upper & middle leel people
only7.
0.1sage rate depend on the weather
condition, usually it goes down during
winters.
2.+ome ariants like the Capacciono did
not do well in the market
3.Certain adertisements like the recent one
IPepsi !FJ resulted in controersial
interpretations of the message of the
adertisement and lead to some loss of
focus 6of message of the adertisements7
4.+tock out problems - replenishment time
is high in semi-urbanQrural areas
(H
money.
OPPORTUNITIES
/.!hey may tap the untouched market
'. !here is huge potential in Indian juice
market. )arket leader in this field is
$abur.
2.)ore promotions like price-offs and
samples, to attract new customers who still
prefers tea or lassi than Pepsi.
3.$iet Pepsi is not aailable in semi urban
and rural areas , aailability of which may
further enhance the sales.
4. Pepsi can proide better schemes to
2etailers with the help of market surey.
THREATS
/.)ajor threat is Coke, which continuously
attacks on Pepsis #ds.
0.Cigh internal competition
2. Indian fruit drink market is also
snatching the customers after pesticides
incidence
3.Indian mothers are also big threats to
Pepsi, because they do not allow their kids
to drink Pepsi. +o Pepsi should make
adertisements to attract Indian females
and should conince them that its not bad
for health.
5. Last but not the least Swami Ramdev.
3@
15-PORTERS FIVE FORCES MODEL
RiAalr$
6#7 Coca-Cola is Pepsi%s is main rial
607 In fruit juices Pepsi%s main rialry is with $abur.
607 Pepsi preailed from the ICola WarsJPepsi has one of the top three soft
drinksE
R Coca-Cola 617
R Pepsi 6S'7
31
R $iet Coke 6S(7
S!::lier P;wer
6#7 Pepsi faces no significant threats in this area
607 Within 1.+., Pepsi uses high fructose corn syrup as a raw material.
6C7,utside 1.+., Pepsi uses sucrose
6$70oth are readily aailable therefore restricting supplier power.
Trea# ;> S!"'#i#!#e'
6#7 Pepsi has successfully differentiated their product.
607 &oyal Pepsi patrons do not see Coke as a conceiable substitute.
6C7!remendous brand loyalty minimi/es threat of substitutes.
Trea# ;> New E(#ra(#'
6#7 Pepsi enjoys significant economies of scale.
607 Pepsi has huge market share.
6C7 Pepsi has tremendous brand loyalty.
6$7 !hese factors minimi/e the threat of new entrants into the soft drink industry
*!$er P;wer
3'
D#7 0uyer does not hae any bargaining power in case of Pepsi

/91 Pr;"lem' Si#ed D!ri() R;!#e S!rAe$ + Dealer S!rAe$
1. Coca cola is proiding far better schemes than Pepsi hence 2etailers prefer
stocking Coke.
'. 5ew retailers are getting Pepsi directly from wholesalers hence conflict is arising
6a7 #mong retailers 607 0etween retailers and distributors.
(. #t number of shops there is no isual display of Pepsi at P,P.
3. 5ew retailers are demanding for larger fridge since last few months but no action
has been taken place. #lso the sericing of fridge is not up to the mark.
4. *"pired bottles are still in the stocks Tco/ Pepsi is not taking them back.
8. )onopoly form should be signed in the beginning of the year, but it has been
done late due to which many outlets hae taken the monopoly of Coca Cola..

3(
/91Re@;mme(da#i;('
1. +ales 5orce needs motiation to work in the market.
'. +cheme needs to be gien in all routes from time to time.
(. )anagement needs to track the problems of retailers ery .uickly in order to increase
the sale.
3. $aily +erice should be aailable to all outlets.
4. !he +cheme aailable in the market should be aailable to all purchasers.
33
0=1RE-ERENCES
6a7 www.ade"india.com
6b7 httpEQQen.wikipedia.orgQwikiQPepsi-Cola
6c7 httpEQQwww.pepsiworld.comQhelpQfa.sQfa..php=categoryUpepsiVbrands&pageUpepsi
6d7 www.cocacola.com
6e7 www.pepsi/onemusic.com
6f7 www.pepsi.comQhome.php
6g7 httpEQQwww.pepsiarena.comQ
6h7 555. kotler mar'eting.com
6.7 "hilip 8otler 9Mar'eting boo'
34
38