SOFT DRINK INDUSTRY

What is a soft drink?

A soft drink (also called soda, pope, coke, soda pop, fizzy drink, seltzer, mineral, lolly water or
carbonated beverage) is a beverage that typically contains carbonated water, a sweetener and a
flavoring. The sweetener may be sugar, high-fructose corn syrup, fruit juice, sugar substitutes (in
the case of diet drinks) or some combination of these. Soft drinks may also contain caffeine,
colorings, preservatives and other ingredients.
Soft drinks are called "soft" in contrast to "hard drinks" (alcoholic beverages). Small amounts
of alcohol may be present in a soft drink, but the alcohol content must be less than 0.5% of the
total volume if the drink is to be considered non-alcoholic. Fruit juice, tea and other such nonalcoholic beverages are technically soft drinks by this definition but are not generally referred to
as such.
Soft drinks may be served chilled or at room temperature, and some, such as Dr Pepper, can be
served warm.

HISTORY OF SOFT DRINKS

Carbonated Drinks
In the late 18th century, scientists made important progress in replicating naturally
carbonated mineral waters. In 1767, Englishman Joseph Priestley first discovered a method of
infusing water with carbon dioxide to make carbonated water when he suspended a bowl of
distilled water above a beer vat at a local brewery in Leeds, England. His invention of carbonated
water (also known as soda water) is the major and defining component of most soft drinks

Priestley found that water treated in this manner had a pleasant taste, and he offered it to friends
as a refreshing drink. In 1772, Priestley published a paper entitled Impregnating Water with
Fixed Air in which he describes dripping oil of vitriol (or sulfuric acid as it is now called)
onto chalk to produce carbon dioxide gas, and encouraging the gas to dissolve into an agitated
bowl of water.
Another Englishman, John Mervin Nooth, improved Priestley's design and sold his apparatus for
commercial use in pharmacies. Swedish chemist Torbern Bergman invented a generating
apparatus that made carbonated water from chalk by the use of sulfuric acid. Bergman's
apparatus allowed imitation mineral water to be produced in large amounts. Swedish
chemist Jons Jacob Berzelius started to add flavors (spices, juices, and wine) to carbonated water
in the late eighteenth century.

Soda Fountain pioneers

Artificial mineral waters, usually called "soda water", and the soda fountain were mostly popular
in the United States. Beginning in 1806, Yale University chemistry professor Benjamin
Silliman sold soda waters in New Haven, Connecticut. He used a Nooth apparatus to produce his
waters. Businessmen in Philadelphia and New York City also began selling soda water in the
early 19th century. In the 1830s, John Matthews of New York City and John Lippincott of
Philadelphia began manufacturing soda fountains. Both men were successful and built large
factories for fabricating fountains.

Soda fountains vs. Bottled Sodas

In 19th century America, the drinking of either natural or artificial mineral water was considered
a healthy practice and promoted by advocates of temperance. The American pharmacists selling
mineral waters began to add herbs and chemicals to unflavored mineral water. They used birch
bark (see birch beer), dandelion, sarsaparilla, fruit extracts, and other substances. Flavorings
were also added to improve the taste. Pharmacies with soda fountains became a popular part of
American culture. Many Americans frequented the soda fountain on a daily basis. Due to
problems in the U.S. glass industry, bottled drinks were a small portion of the market in the 19th
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century. (However, they were known in England. In The Tenant of Wildfell Hall, published in
1848, the caddish Huntingdon, recovering from months of debauchery, wakes at noon and gulps
a bottle of soda-water.) In America, most soft drinks were dispensed and consumed at a soda
fountain, usually in a drugstore or ice cream parlor. In the early 20th century, sales of bottled
soda increased exponentially. In the second half of the 20th century, canned soft drinks became
an important share of the market.

Soft Drink bottling industry

Over 1,500 U.S. patents were filed for either a cork, cap, or lid for the carbonated drink bottle
tops during the early days of the bottling industry. Carbonated drink bottles are under great
pressure from the gas. Inventors were trying to find the best way to prevent the carbon dioxide or
bubbles from escaping. In 1892, the "Crown Cork Bottle Seal" was patented by William Painter,
a Baltimore, Maryland machine shop operator. It was the first very successful method of keeping
the bubbles in the bottle.

Automatic production of glass bottles

In 1899, the first patent was issued for a glass-blowing machine for the automatic production of
glass bottles. Earlier glass bottles had all been hand-blown. Four years later, the new bottleblowing machine was in operation. It was first operated by the inventor, Michael Owens, an
employee of Libby Glass Company. Within a few years, glass bottle production increased from
1,400 bottles a day to about 58,000 bottles a day.

Home Packs and vending machines

During the 1920s, "Home-Packs" were invented. "Home-Packs" are the familiar six-pack
cartons made from cardboard. Vending machines also began to appear in the 1920s. Since then,
soft drink vending machines have become increasingly popular. Both hot and cold drinks are
sold in these self-service machines throughout the world.

Growth Promotional Activities

The government has adopted liberalized policies for the soft drink trade to give the industry a
boast and promote the Indian brands internationally. Although the import and manufacture of
international brands like Pepsi and Coke is enhanced in India the local brands are being
stabilized by advertisements, good quality and low cost.
The soft drinks market till early 1990s was in hands of domestic players like campa, thums up,
Limca etc but with opening up of economy and coming of MNC players Pepsi and Coke the
market has come totally under their control.
The distribution network of coca cola had 6.5 lakh outlets across the country in FY00, which the
company is planning to increase to 8 lakhs by FY01. On the other hand PepsiCo`s distribution
network had 6 lakh outlets across the country during FY00 which it is planning to increase to 7.5
lakh by FY01.

Types
Soft drinks are available in glass bottles, aluminium cans and PET bottles for home consumption.
Fountains also dispense them in disposable containers Non-alcoholic soft drink beverage market
can be divided into fruit drinks and soft drinks. Soft drinks can be further divided into carbonated
and non-carbonated drinks. Cola, lemon and oranges are carbonated drinks while mango drinks
are of non carbonated category.
The market can also be segmented on the basis of types of products into cola products and noncola products. Cola products account for nearly 61-62% of the total soft drinks market. The
brands that fall in this category are Pepsi, Coca-Cola, Thumps Up, Diet Coke, Diet Pepsi etc.
Non-cola segment which constitutes 36% can be divided into 4 categories based on the types of
flavors available, namely: Orange, Cloudy Lime, Clear Lime and Mango.

SOFT DRINK PRODUCTION

Soft drinks are made by mixing dry ingredients and/or fresh ingredients (for example, lemons,
oranges, etc.) with water. Production of soft drinks can be done at factories or at home.
Soft drinks can be made at home by mixing either a syrup or dry ingredients with carbonated
water. Carbonated water is made using a soda siphon or a home carbonation system or by
dropping dry ice into water. Syrups are commercially sold by companies such as Soda-Club; dry
ingredients are often sold in pouches, in the style of the popular U.S. drink mix Kool-Aid.
Drinks like ginger ale and root beer are often brewed using yeast to cause carbonation.

Ingredient quality
Of most importance is that the ingredient meets the agreed specification on all major parameters.
This is not only the functional parameter (in other words, the level of the major constituent), but
the level of impurities, the microbiological status, and physical parameters such as color, particle
size, etc.

Potential Alcohol content

A report in October 2006 demonstrated that some soft drinks contain measurable amounts of
alcohol. In some older preparations, this resulted from natural fermentation used to build the
carbonation. In the United States, soft drinks (as well as other beverages such as non-alcoholic
beer) are allowed by law to contain up to 0.5% alcohol by volume. Modern drinks introduce
carbon dioxide for carbonation, but there is some speculation that alcohol might result from
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fermentation of sugars in an unsterile environment. A small amount of alcohol is introduced in

some soft drinks where alcohol is used in the preparation of the flavoring extracts such as vanilla
extract.

SOFT DRINKS INDUSTRY IN INDIA

Soft drinks in India industry profile top-line qualitative and quantitative summary information
including market size. The profile also contains description of the leading players including key
financial metrices and analysis of competitive pressures within the market. Essential resource for
top-line data and analysis covering the India soft drinks market rates.

The soft drinks market consists of retailed sale of bottled water, carbonates, concentrates,
functional drinks, juices, RTD tea and coffee, and smoothies. However the total market vol.ume
for soft drinks market excludes the concentrates category. The market is valued according to
retail selling price and includes any applicable taxes.

SOFT DRINKS TIMELINE

1798
The term "soda water" first coined.

1810
First U.S. patent issued for the manufacture of imitation mineral waters.

1819
The "soda fountain" patented by Samuel Fahnestock.

1835
The first bottled soda water in the U.S.

1850

A manual hand & foot operated filling & corking device, first used for bottling soda
water.

1851
Ginger ale created in Ireland.

1861
The term "pop" first coined.

1874
The first ice-cream soda sold.

1876
Root beer mass produced for public sale.

1881
The first cola-flavored beverage introduced.

1885
Charles Aderton invented "Dr Pepper" in Waco, Texas.

1886
Dr. John S. Pemberton invented "Coca-Cola" in Atlanta, Georgia.

1892
William Painter invented the crown bottle cap.

1898
"Pepsi-Cola" is invented by Caleb Bradham.

1899
The first patent issued for a glass blowing machine, used to produce glass bottles.

1913
Gas motored trucks replaced horse drawn carriages as delivery vehicles.

1919
The American Bottlers of Carbonated Beverages formed.

1920
The U.S. Census reported that more than 5,000 bottlers now exist.

Early 1920`s
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The first automatic vending machines dispensed sodas into cups.

1923
Six-pack soft drink cartons called "Hom-Paks" created.

1929
The Howdy Company debuted its new drink "Bib-Label Lithiated Lemon-Lime Sodas"
later called "7 Up". Invented by Charles Leiper Grigg.

1934
Applied color labels first used on soft drink bottles, the coloring was baked on the face of
the bottle.

1952
The first diet soft drink sold called the "No-Cal Beverage" a gingerale sold by Kirsch.

1957
The first aluminum cans used.

1959
The first diet cola sold

1962
The pull-ring tab first marketed by the Pittsburgh Brewing Company of Pittsburgh, PA.
The pull-ring tab was invented by Alcoa

1963
The Schlitz Brewing company introduced the "Pop Top" beer can to the nation in March,
invented by Ermal Fraze of Kettering, Ohio

1965
Soft drinks in cans dispensed from vending machines.

1965
The reseal able top invented.

1966
The American Bottlers of Carbonated Beverages renamed The National Soft Drink
Association.

1970
Plastic bottles are used for soft drinks.
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1973
The PET (Polyethylene Terephthalate) bottle created.

1974
The stay-on tab invented. Introduced by the Falls City Brewing Company of Louisville,
KY.

1979
Mello Yello soft drink is introduced by the Coca Cola Company as competition against
Mountain Dew.

1981
The "talking" vending machine invented.

Mid-80`s
Caffeine-free and low-sodium soft drinks gain popularity.

Early 1990`s
Clear colas manufacture

1991
Soft drink companies begin using PET bottles.

1993
Number of soft drink containers recycled since the first Earth Day in 1970, reaches 384
billion.

HISTORY OF COCA-COLA
The product that has given the world its best-known taste was born I Atlanta, Georgia, on May 8,
1886. Dr. John Stith Pemberton, a local pharmacist, produced the syrup for Coca-Cola, and
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carried a jug of the new product down the street to Jacob`s pharmacy, where it was sampled,
pronounced excellent and placed on sale for five cents a glass as a soda fountain drink that was
at once Delicious and Refreshing, a theme that continues to echo today wherever Coca-Cola is
enjoyed.
Thinking that the two Cs would look well in advertising, Dr. Pemberton`s partner and
bookkeeper, Frank M. Robinson, suggested the name and penned the now famous trademark
Coca-Cola in his unique script. The first newspaper as for Coca-Cola soon appeared in The
Atlanta Journal, inviting thirsty citizens to try the new and popular soda fountain drink. Hand
painted oilcloth signs reading Coca-Cola appeared on store awnings, with the suggestion
Drink added to inform passerby that the new beverage was for soda fountain refreshment.
During the first year, sales averaged a modest nine drinks per day.
Dr. Pemberton never realized the potential of the beverage he created. He gradually sold portions
of his business to various partners and just prior to his death in 1888, sold his remaining interese
in Coca-Cola to Asa G. Candler. An Atlanta with great business acumen, Mr. Candler proceeded
to buy additional rights and acquire complete control.

THE COCA-COLA BUSINESS IN INDIA

While the coca-cola Company is a global company with some of the world`s most widely
recognized brands, the coca-cola business in India, as in each country where the company
operates, is a local business. The beverages are produced locally, employing Indian citizens, the
product range and marketing reflect Indian tastes and lifestyles, and the company is deeply
involved in the life of the local communities in which company operate.

INVESTMENT, EMPLOYMENT AND ECONOMIC IMPACT

Coca-cola India has made significant investments to build and make continually improve its
business in India, including new production facilities, wastewater treatment plants, and
distribution systems and marketing equipment. During the past decade, the coca-cola has
invested more than US$1 billion in India. As such coca-cola is one of the country`s top
international investors. In 2003, coca-cola India pledged to invest a further US$100 million in its
operations.
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The coca-cola business system directly employs approximately 10,000 local people in india. In
addition, several independent studies have documented that, by providing opportunities for local
enterprises, the coca-cola business also generates a significant employment multiplier effect. In
India. We indirectly create employment for more than 125,000 people in related industries
through our vast procurement, supply and distribution system.

BOTTLING OPERATIONS
The coca-cola system in India comprises 27 wholly-owned company-owned bottling operations
and another 17 franchisee-owned bottling operations. A network of 29 contract- packers also
manufactures a range of products for the company.
Almost all the goods and services required to produce and market coca-cola in India is made
locally, sometimes with th help of technology and skills from the company. The complexity of
the Indian market is reflected in the distribution fleet, which includes 10-tonne trucks, open-bay
three-wheelers that can navigate the narrow alleyways of Indian cities, and trademarked tricycles
and pushcarts.

MARKETING
While brand direction and themes for our global brands are created at a global level, specific
marketing programmes for our products are determined locally. In early 2003, Coca-cola India
collected Advertiser of the year and Campaign of the Year awards for the Thanda Matlab Cocacola all-media campaign. Innovation has been the hallmark of other marketing campaigns, with
the Company racking up firsts in the introduction ofcanned and PET soft drinks, vending
machines and backpack dispensers foir crowds of cricket supporters.

QUALITY
Coca cola consider the consistent high quality of beverages to be one of his business` primary
assets. In India, as in each country where the company produces the beverages, the Coca-cola
system adheres not only to national laws on food processing and labeling, but also to our own
strict standards for exceptional quality. In everything we do, from the selection of ingredients to
the production of our beverages and their delivery to the marketplace, when use our specialized
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quality management system. The Coca-cola quality system, to ensure that we are offering
consumers only the highest quality products. We monitor our success through our customer and
consumer feedback and our in-trade monitoring programmers, and this information enables us to
continuously improve our already demanding systems.

ENVIRONMENT
Coca-cola India is supporting community-based rainwater harvesting projects in rural and urban
areas to help restore water levels and promote community education in ways to conserve natural
resources. These initiatives have benefited over 10,000 Delh8i residents, as well as local
community members, both in areas surrounding coca-cola bottling plants and elsewhere.

HEALTHCARE
Coca-cola in India is partnering with NGOs as well as St. John`s Ambulance Brigade (Red
Cross) to provide free medical facilities and information to poor people who cannot afford to
visit hospital facilities. These efforts are helping tens of thousands of underprivileged people in
seven states in India, as well as several villages near Coca-Cola bottling plants.
The company has also supported a range of other national initiatives, such as a major polioeradication drive and d5rought-relief programmed, in addition to support towards the National
Cricket Championship for the Blind, and National Athletics meetings for the physically
challenged.

HISTORY OF PEPSI
The Pepsi-cola story itself begins with a drugstore in New Brn, North Carolina, and a pharmacist
named Caleb Bradham. Bradham`s aim was to create fountain drink that was both delicious and
healthful in aiding digestion and boosting energy. It would be free of the impurities found in
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many bottled health tonics, and it would contain none of the stronger narcotics often added to
popular fountain drinks. As most pharmacies in 1896, Bradhams`s drugstore housed a soda
fountain where the small town clientele would meet to socialize. Bradhman`s establishment even
featured a kind of primitive jukebox, which for a nickel would entertain the listener with the
latest musical selections rendered by violin or piano or both.
It was at such convivial gatherings that Bradham would offer his latest concoction. Over tine,
one of his recipes became known as Brad`s Drink. A member of the press declared, It has
sparkler and just enough acidity to make it pleasant. Soon its popularity would exceed the
boundaries of New Bern.
The cellar of Bradham`s drugstore served as the original site of Pepsi-cola syrup manufacturing.
Electing to start his new business on a small, manageable scale, Bradham based his operation on
familiar territory. Ingredients were hauled downstairs to cramped quarters where they were
mixed together and then cooked in a large kettle. The syrup was subsequently poured into onegallon jugs and five-gallon kegs to be shipped to customers.
By 1902, the demand from surrounding drugstores increased so dramatically it dawned on
Bradham that Pepsi-cola was something special. On December 24, 1902, he filed incorporation
papers with the state of North Carolina; in these, he indicated his plans for corporate branches in
Virginia, Maryland, Pennsylvania, and New York.
The business began to grow, and on June 16, 1903, "Pepsi-Cola" was officially registered with
the U.S. Patent Office. That year, Caleb sold 7,968 gallons of syrup, using the theme line
"Exhilarating, Invigorating, Aids Digestion." He also began awarding franchises to bottle Pepsi
to independent investors, whose number grew from just two in 1905, in the cities of Charlotte
and Durham, North Carolina, to 15 the following year, and 40 by 1907. By the end of 1910, there
were Pepsi-Cola franchises in 24 states.
Pepsi-Cola's first bottling line resulted from some less-than-sophisticated engineering in the back
room of Caleb's pharmacy. Building a strong franchise system was one of Caleb's greatest
achievements. Local Pepsi-Cola bottlers, entrepreneurial in spirit and dedicated to the product's
success, provided a sturdy foundation. They were the cornerstone of the Pepsi-Cola enterprise.
By 1907, the new company was selling more than 100,000 gallons of syrup per year.
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Growth was phenomenal, and in 1909 Caleb erected a headquarters so spectacular that the town
of New Bern pictured it on a postcard. Famous racing car driver Barney Oldfield endorsed Pepsi
in newspaper ads as "A bully drink...refreshing, invigorating, a fine bracer before a race."
The previous year, Pepsi had been one of the first companies in the United States to switch from
horse-drawn transport to motor vehicles, and Caleb's business expertise captured widespread
attention. He was even mentioned as a possible candidate for Governor. A 1913 editorial in the
Greensboro Patriot praised him for his "keen and energetic business sense."
Pepsi-Cola enjoyed 17 unbroken years of success. Caleb now promoted Pepsi sales with the
slogan, "Drink Pepsi-Cola. It will satisfy you." Then came World War I, and the cost of doing
business increased drastically. Sugar prices see sawed between record highs and disastrous lows,
and so did the price of producing Pepsi-Cola. Caleb was forced into a series of business gambles
just to survive, until finally, after three exhausting years, his luck ran out and he was bankrupted.
By 1921, only two plants remained open. It wasn't until a successful candy manufacturer, Charles
G. Guth, appeared on the scene that the future of Pepsi-Cola was assured. Guth was president of
Loft Incorporated, a large chain of candy stores and soda fountains along the eastern seaboard.
He saw Pepsi-Cola as an opportunity to discontinue an unsatisfactory business relationship with
the Coca-Cola Company, and at the same time to add an attractive drawing card to Loft's soda
fountains. He was right. After five owners and 15 unprofitable years, Pepsi-Cola was once again
a thriving national brand.
One oddity of the time, for a number of years, all of Pepsi-Cola's sales were actually
administered from a Baltimore building apparently owned by Coca-Cola, and named for its
president. Within two years, Pepsi would earn $1 million for its new owner. With the resurgence
came new confidence, a rarity in those days because the nation was in the early stages of a severe
economic decline that came to be known as the Great Depression.
1898:- Caleb Bradham, a New Bern, North Carolina, pharmacist, renames "Brad's Drink," a
carbonated soft drink he created to serve his drugstore's fountain customers. The new name,
Pepsi-Cola, is derived from two of the principal ingredients, pepsin and kola nuts. It is first used
on August 28.
1902:- Bradham applies to the U.S. Patent Office for a trademark for the Pepsi-Cola name.
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1903:- In keeping with its origin as a pharmacist's concoction, Bradham's advertising praises his
drink as "Exhilarating, invigorating, aids digestion."
1905:- A new logo appears, the first change from the original created in 1898.
1906:- The logo is redesigned and a new slogan added: "The original pure food drink." The
trademark is registered in Canada.
1907:- The Pepsi trademark is registered in Mexico.
1909:- Automobile racing pioneer Barney Oldfield becomes Pepsi's first celebrity endorser when
he appears in newspaper ads describing Pepsi-Cola as "A bully drink...refreshing, invigorating, a
fine bracer before a race." The theme "Delicious and Healthful" appears, and will be used
intermittently over the next two decades.
1920:- Pepsi appeals to consumers with, "Drink Pepsi-Cola. It will satisfy you."
1932:- The trademark is registered in Argentina.
1934:- Pepsi begins selling a 12-ounce bottle for five cents, the same price charged by its
competitors for six ounces.
1938:- The trademark is registered in the Soviet Union.
1939:- A newspaper cartoon strip, "Pepsi & Pete," introduces the theme "Twice as Much for a
Nickel" to increase consumer awareness of Pepsi's value advantage.
1940:- Pepsi makes advertising history with the first advertising jingle ever broadcast
nationwide. "Nickel, Nickel" will eventually become a hit record and will be translated into 55
languages. A new, more modern logo is adopted.
1941:- In support of America's war effort, Pepsi changes the color of its bottle crowns to red,
white and blue. A Pepsi canteen in Times Square, New York, operates throughout the war,
enabling more than a million families to record messages for armed services personnel overseas.
1943:- The "Twice as Much" advertising strategy expands to include the theme, "Bigger Drink,
Better Taste."
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1949:- "Why take less when Pepsi's best?" is added to "Twice as Much" advertising.
1950:- "More Bounce to the Ounce" becomes Pepsi's new theme as changing soft drink
economics force Pepsi to raise prices to competitive levels. The logo is again updated.
1953:- Americans become more weight conscious, and a new strategy based on Pepsi's lower
caloric content is implemented with "The Light Refreshment" campaign.
1954:- "The Light Refreshment" evolves to incorporate "Refreshing Without Filling."
1958:- Pepsi struggles to enhance its brand image. Sometimes referred to as "the kitchen cola,"
as a consequence of its long-time positioning as a bargain brand, Pepsi now identifies itself with
young, fashionable consumers with the "Be Sociable, Have a Pepsi" theme. A distinctive "swirl"
bottle replaces Pepsi's earlier straight-sided bottle.
1959:- Soviet Premier Nikita Khrushchev and U.S. Vice-President Richard Nixon meet in the
soon-to-be-famous "kitchen debate" at an international trade fair. The meeting, over Pepsi, is
photo-captioned in the U.S. as "Khrushchev Gets Sociable."
1961:- Pepsi further refines its target audience, recognizing the increasing importance of the
younger, post-war generation. "Now it's Pepsi, for Those who think Young" defines youth as a
state of mind as much as a chronological age, maintaining the brand's appeal to all market
segments.
1963:- In one of the most significant demographic events in commercial history, the post-war
baby boom emerges as a social and marketplace phenomenon. Pepsi recognizes the change, and
positions Pepsi as the brand belonging to the new generation-The Pepsi Generation. "Come
alive! You're in the Pepsi Generation" makes advertising history. It is the first time a product is
identified, not so much by its attributes, as by its consumers' lifestyles and attitudes.
1964:- A new product, Diet Pepsi, is introduced into Pepsi-Cola advertising.
1966:- Diet Pepsi's first independent campaign, "Girlwatchers," focuses on the cosmetic benefits
of the low-calorie cola. The "Girlwatchers" musical theme becomes a Top 40 hit. Advertising for
another new product, Mountain Dew, a regional brand acquired in 1964, airs for the first time,
built around the instantly recognizable tag line, "Ya-Hoo, Mountain Dew!"
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1967:- When research indicates that consumers place a premium on Pepsi's superior taste when
chilled, "Taste that beats the others cold. Pepsi pours it on" emphasizes Pepsi's product
superiority. The campaign, while product-oriented, adheres closely to the energetic, youthful,
lifestyle imagery established in the initial Pepsi Generation campaign.
1969:- "You've got a lot to live. Pepsi's got a lot to give" marks a shift in Pepsi Generation
advertising strategy. Youth and lifestyle are still the campaign's driving forces, but with
"Live/Give," a new awareness and a reflection of contemporary events and mood become
integral parts of the advertising's texture.
1973:- Pepsi Generation advertising continues to evolve. "Join the Pepsi People, Feelin' Free"
captures the mood of a nation involved in massive social and political change. It pictures us the
way we are-one people, but many personalities.
1975:- The Pepsi Challenge, a landmark marketing strategy, convinces millions of consumers
that Pepsi's taste is superior.
1976:- "Have a Pepsi Day" is the Pepsi Generation's upbeat reflection of an improving national
mood. "Puppies," a 30-second snapshot of an encounter between a very small boy and some even
smaller dogs, becomes an instant commercial classic.
1979:- With the end of the '70s comes the end of a national malaise. Patriotism has been restored
by an exuberant celebration of the U.S. bicentennial, and Americans are looking to the future
with renewed optimism. "Catch that Pepsi Spirit!" catches the mood and the Pepsi Generation
carries it forward into the '80s.
1982:- With all the evidence showing that Pepsi's taste is superior, the only question remaining is
how to add that message to Pepsi Generation advertising. The answer? "Pepsi's got your Taste for
Life!," a triumphant celebration of great times and great taste.
1983:- The soft drink market grows more competitive, but for Pepsi drinkers, the battle is won.
The time is right and so is their soft drink. It's got to be "Pepsi Now!"
1984:- A new generation has emerged-in the United States, around the world and in Pepsi
advertising, too. "Pepsi. The Choice of a New Generation" announces the change, and the most
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popular entertainer of the time, Michael Jackson, stars in the first two commercials of the new
campaign. The two spots quickly become "the most eagerly awaited advertising of all time."
1985:- Lionel Richie leads a star-studded parade into "New Generation" advertising followed by
pop music icons Tina Turner and Gloria Estefan. Sports heroes Joe Montana and Dan Marino are
part of it, as are film and television stars Teri Garr and Billy Crystal. Geraldine Ferraro, the first
woman nominated to be vice president of the U.S., stars in a Diet Pepsi spot. And the
irrepressible Michael J. Fox brings a special talent, style and spirit to a series of Pepsi and Diet
Pepsi commercials, including a classic, "Apartment 10G."
1987:- After an absence of 27 years, Pepsi returns to Times Square, New York, with a spectacular
850-square foot electronic display billboard declaring Pepsi to be "America's Choice."
1988:- Michael Jackson returns to "New Generation" advertising to star in a four-part "episodic"
commercial named "Chase." "Chase" airs during the Grammy Awards program and is
immediately hailed by the media as "the most-watched commercial in advertising history."
1989:- "The Choice of a New Generation" theme expands to categorize Pepsi users as "A
Generation Ahead!"
1990:- Teen stars Fred Savage and Kirk Cameron join the "New Generation" campaign, and
football legend Joe Montana returns in a spot challenging other celebrities to taste test their colas
against Pepsi. Music legend Ray Charles stars in a new Diet Pepsi campaign, "You got the right
one baby."
1991:- "You got the Right one Baby" is modified to "You got the Right one Baby, Uh-Huh!" The
"Uh-Huh Girls" join Ray Charles as back-up singers and a campaign soon to become the most
popular advertising in America is on its way. Supermodel Cindy Crawford stars in an awardwinning commercial made to introduce Pepsi's updated logo and package graphics.
1992:- Celebrities join consumers, declaring that they "Gotta Have It." The interim campaign
supplants "Choice of a New Generation" as work proceeds on new Pepsi advertising for the '90s.
Mountain Dew growth continues, supported by the antics of an outrageous new Dew Crew
whose claim to fame is that, except for the unique great taste of Dew, they've "Been there, Done
that, Tried that."
18

1993:- "Be Young, Have fun, Drink Pepsi" advertising starring basketball superstar Shaquille
O'Neal is rated as best in U.S.
1994:- New advertising introducing Diet Pepsi's freshness dating initiative features Pepsi CEO
Craig Weather up explaining the relationship between freshness and superior taste to consumers.
1995:- In a new campaign, the company declares "Nothing else is a Pepsi" and takes top honors
in the year's national advertising championship.

COMPANY PROFILE
About PepsiCo

PepsiCo is a global food and beverage leader with net revenues of more than $65 billion and a
product portfolio that includes 22 brands that generate more than $1 billion each in annual retail
sales. Our main businesses Quaker, Tropicana, Gatorade, Frito-Lay and Pepsi-Cola make
hundreds of enjoyable foods and beverages that are loved throughout the world. PepsiCos
people are united by our unique commitment to sustainable growth by investing in a healthier
future for people and our planet, which we believe also means a more successful future for
PepsiCo. We call this commitment Performance with Purpose: PepsiCos promise to provide a
wide range of foods and beverages from treats to healthy eats; to find innovative ways to
minimize our impact on the environment by conserving energy and water and reducing
packaging volume; to provide a great workplace for our associates; and to respect, support and
invest in the local communities where we operate.

PepsiCo India Region: Leadership through Performance with Purpose

PepsiCo entered India in 1989 and in a short period, has grown into one of the largest food and
beverage businesses in the country. PepsiCo growth in India has been guided by its global vision
of Performance with Purpose. This means that while businesses maximize shareholder value,
they have a responsibility to all the stakeholders, including the communities in which they
operate, the consumers they serve and the environment whose resources they use.
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Large investor and one of the largest food & beverage businesses in India:
One of the largest US multinational investors in the country, PepsiCo has been consistently
investing in India and has built an expansive beverage and snack food business supported by 38
beverage plants and 3 food plants. PepsiCo and its partners recently announced an additional
targeted investment of Rs. 33,000 Crore in India by 2020 in the areas of product innovation,
increasing manufacturing capacity, ramping up market infrastructure, strengthening supply chain
and expanding companys agriculture programme. PepsiCo Indias diverse portfolio includes
iconic brands like Pepsi, Lays, Kurkure, Tropicana, Gatorade and Quaker. In two decades, the
company has been able to organically grow eight brands that generate Rs. 1000 crores or more in
estimated annual retails sales and are household names, trusted across the country.

A growing portfolio of enjoyable and wholesome snacks and beverages:

PepsiCo Indias portfolio reflects its commitment to nourish consumers with a diverse range of
fun and healthier products. The portfolio includes several healthier treats like Quaker Oats,
Tropicana juices, Tropicana fruit powders, rehydrator Gatorade, Tata Water plus, Lays baked
range, Quaker flavored oats and Quaker Nutri Upma & Nutri Poha breakfast range with the
power of wholegrain.

Model partnership with over 24,000 farmers:

PepsiCo India has pioneered and established a model of partnership with farmers and now works
with over 24,000 happy farmers across nine states. More than 45 percent of these are small and
marginal farmers with a land holding of one acre or less. PepsiCo provides 360-degree support to
the farmer through assured buy back of their produce at pre-agreed prices, quality seeds,
extension services, disease control packages, bank loans, weather insurance, and the latest
20

technological practices. The association with PepsiCo India has not only raised the incomes of
small and marginal farmers, but also their social standing.

Global leader in water conservation:

In 2009, PepsiCo India achieved a significant milestone, by becoming the first business to
achieve Positive Water Balance in the beverage world, and has been Water Positive since then.
This fact has been independently assured by Deloitte Touch Tohmatsu India Pvt. Ltd. In 2012,
PepsiCo India saved 8.2 billion litres more that it consumed in its manufacturing operations. The
company made this possible through innovative irrigation practices like direct seeding,
community water recharging initiatives, and by reducing the consumption of water in its
manufacturing facilities. PepsiCo is lauded for its efforts for water conservation and has received
numerous awards such as CII National award for water management, Water Digest award for
water practices and Golden Peacock award for water conservation amongst others.

Care for the environment:

PepsiCo India is now focused on reducing its carbon footprint. More than 40 per cent of its
energy is today generated from renewable sources such as bio mass & rice husk boilers and wind
turbines. Initiatives such as reduction in use of chemicals, eco-friendly packaging initiatives and
efficient waste management help reduce load on the environment. PepsiCo in partnership with
the NGO Exnora and local municipalities has also been working on a unique waste collection
and treatment program called Waste-to-Wealth. The award winning programme has positively
impacted more than 5,00,000 people.

Exemplary employment practices:

21

PepsiCo India provides direct and indirect employment to almost 2,00,000 people. The company
believes in providing employment and growth opportunities to local talent. Its College of
Leadership, ensures early identification of talent, and employees focused development through
critical experiences. PepsiCo firmly believes that encouraging diversity means encouraging
policies and systems that respect peoples special needs. Not only does PepsiCo have a vibrant
and diverse workforce, it takes the utmost care to make dynamic business leaders of its
employees and foster their career and personal growth through differentiated experiences and a
robust leadership development model.

COMPANY`S MISSION AND VISION

OUR MISSION
Our mission is to be the world's premier consumer products company focused on convenient
foods and beverages. We seek to produce financial rewards to investors even as we provide
opportunities for growth and enrichment to our employees, our business partners and the
communities in which we operate. And in everything we do, we strive for honesty, fairness and
integrity.

OUR VISION
PepsiCo's responsibility is to continually improve all aspects of the world in which we operate
environmental, social, economic creating a better tomorrow than today.
Our vision is put into action through programmes and a focus on environmental stewardship,
activities to benefit society and a commitment to build shareholder value by making PepsiCo a
truly sustainable company.

22

PepsiCo Values & Philosophy

PepsiCo`s values and philosophy are a reflection of the socially and environmentally responsible
company we aspire to be. They are the foundation for every business decision we make.

Commitment
PepsiCo is committed to delivering sustained growth through empowered people acting
responsibly and building trust.

Sustained Growth
It is fundamental to motivating and measuring our success. Our quest for sustained
growth stimulates innovation, places a value on results and helps us understand whether
today's actions will contribute to our future. It is about the growth of people and company
performance. It prioritizes both making a difference and getting things done.

Empowered People
It means we have the freedom to act and think in ways that we feel will get the job
done, while adhering to processes that ensure proper governance and being mindful of
company needs beyond our own.

Responsibility and Trust

It forms the foundation for healthy growth. We hold ourselves both personally and
corporately accountable for everything we do. We earn the confidence others place in us
as individuals and as a company. By acting as good stewards of the resources entrusted to
us, we strengthen that trust by delivering on our promises and remaining committed to
succeeding together.
23

GUIDING PRINCIPLES OF PEPSICO

1. Care for our customers, our consumers and the world we live in.
We are driven by the competitive spirit of the marketplace, but we direct this spirit
toward solutions that benefit both our company and our constituents. Our success
depends on a thorough understanding of our customers, consumers and communities. To
foster this spirit of generosity, we go the extra mile to show we care.

2. Sell only products we can be proud of.

The true test of our standards is that we are able, without reservation, to consume
and personally endorse the products we sell. Our absolute endorsement extends to every
part of the business, from the purchase of ingredients to the point where our products
reach consumers.
3. Speak with truth and candour.
We tell the whole story, not just what is convenient to our individual goals. In
addition to being clear, honest and accurate, we take responsibility for ensuring that our
communications are understood.

4. Balance the short term and long term.

In every decision, we weigh both short-term and long-term risks and benefits.
Maintaining this balance helps sustain our growth and ensures that our ideas and
solutions are relevant both now and in the future.
5. Win with diversity and inclusion.
We embrace people with diverse backgrounds, traits and ways of thinking. Our
diversity brings new perspectives into the workplace and encourages innovation, helps us
identify new market opportunities, develop new products and sustain our commitment to
growth through empowered people.

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6. Respect others and succeed together.

We depend on people who can work together, whether in structured teams or
through informal collaboration. Mutual success depends on mutual respect, for both those
within and outside the company. While our company is built on individual excellence, the
value we attach to teamwork and mutual respect turns our goals into accomplishments.

Global Code of Conduct of PepsiCo

At PepsiCo, we believe acting ethically and responsibly is not only the right thing to do,
but also the right thing to do for our business.
Our PepsiCo Global Code of Conduct (our Code) has been revised effective October 1,
2012 to address changing laws that impact our business. It is designed to provide our employees
with specific guidance on how to act ethically while performing work for PepsiCo.
All PepsiCo employees are expected to embrace the principles of our Code and:

Show respect in the workplace

Act with integrity in the marketplace
Ensure ethics in our business activities
Perform work responsibly for our shareholder

Our Code remains our roadmap and compass for doing business the right way. It reinforces
our core Values and is the foundation of our strategic mission of Performance with Purpose in
fact, our Code is the purpose behind our performance.
Our Speak Up reporting hotline is an integral part of our culture of ethics and compliance at
PepsiCo. We encourage all employees, vendors, contractors and customers to speak up about
business situations that might conflict with the Code, our Values, our policies and applicable law.

25

PEPSICO BRANDS
PEPSI

Brand History
Pepsi is a hundred-year-old brand loved by over 200 million people worldwide. The largest
single selling soft drink brand in India, Pepsi is ubiquitous on just about every social occasion.

Youngistan loves it. 200 million people worldwide love it. But what has made Pepsi the
single largest selling soft drink brand in India is actually a formula concocted a century ago in a
faraway continent.

1886, the US. Caleb Bradman, a man with a plan formulated a blockbuster of a digestive
drink and decided to call it Brads drink. The potion was to become Pepsi Cola in 1898, and
eventually, Pepsi in 1903.

Since its inception, Pepsi has always been at the forefront of the beverage industry and
has come up with revolutionary concepts such as Diet Pepsi, 2l bottles, recyclable plastic cola
bottles and the enviable My Can.

Brand Advantage

Pepsi has become a friend to youth and youth culture. Over generations, youngsters have
grown up with Pepsi and have shared an emotional connect with it unlike with any other cola
brand. Be it parties, hangouts with friends, or just another day at home, a day is never complete
without the fizz of Pepsi!

26

Pepsi has always fuelled youth passions like cricket, Bollywood, music and now football.
Youth icons like MS Dhoni, Ranbir Kapoor, Didier Drogba, Virendar Sehwag, Sachin Tendulkar,
Priyanka Chopra and Deepika Padukone have endorsed Pepsi since its launch in India.

Pepsi Changed the Game during the 2011 cricket world cup by challenging convention,
celebrating the unorthodox and by becoming the official sponsor of everything that was
unofficial about the sport! Change the Game even as a thought has gained enormous popularity
and generated tremendous buzz.

Taking the same theme forward in 2012, Pepsi changed the game yet again by taking the
lead in celebrating the exciting new platform of football. Having brought the biggest
international football stars and pitching them against the mighty Indian cricketers in a classic
faceoff for Pepsi is something which only a brand like Pepsi can deliver.

Quick Brand Facts

Flagship brand of PepsiCo.

100 year old brand loved by over 200 million people worldwide.

An iconic youth brand in India.

The single largest selling soft drink brand in India.

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 7UP

Brand History
7UP, the refreshing clear drink with a natural lemon and lime flavor was created in 1929. It was
launched in India in 1990 and its international mascot Fido Dido was used for advertising in
1992, to position the brand as a cool drink for youngsters. Fido became an instant hit with his
trendy look, laid-back attitude and unconventional take on life. 7UP is one of the first to be
nationally distributed besides being marketed as a healthier alternative to other soft drinks.

Brand Advantage
7UP's lemon refreshment picks you up and leaves you feeling upbeat. Its sparkling, crisp lemon
and lime flavor keeps you positive against all odds. Just the perfect drink for a country that's
simply unputdownable by its share of downswings and challenges. We're always upbeat about
the present, and optimistic about our future. 7UPs brand philosophy - I Feel Up - celebrates this
irrepressible optimism.

Did You Know?

Over the years 7UP has engaged the youth with its lemon based refreshing taste coupled with its
refreshing attitude towards life. This refreshing take of 7UP has been evident in all its
communication through the years. Over the years 7UP has been serenaded by croonings of the
svelte Yana Gupta got cajoled by curvy Mallika Sehrawat was uniquely endorsed by Bappi
28

Lahiri, its take on life popularized by Sharman Joshi, Allu Arjun, STR and Puneeth Rajkumar.
Most recently Irrfan Khan got refreshed by 7UP. The Pepsi IPL teams of Chennai Super Kings
and Hyderabad Sunrisers also get their dose of refreshment from 7UP.
7UP has always had a huge presence in South India. The brand has been running its hugely
popular yearly program of 7UP Dance Pattalam. Apart from the large prize money, the program
provides a most coveted platform to the Dancing talent from South India. Each year the love of
the consumers makes this program even bigger. The program has got associations from some of
the great dancing Superstars of the South Allu Arjun, STR (Simbu) and Puneeth Rajkumar.

29

 DUKE`S

Dukes Legacy
Founded in 1889 by Dinshwaji Pandole, Dukes is a brand that is seeped in Mumbais rich
history. It was in many ways the countrys first aerated soft drink and a pioneer on many fronts.
Many a generations have grown up enjoying the refreshing taste of Dukes. Thus when PepsiCo
India brought this brand in 1994, it also inherited Dukes rich Mumbai legacy. While the
Lemonade flavour has refreshed the consumers ever since, in September 2011 some more
flavours of Dukes , the delicious Raspberry and the sugary sweet Ice-cream soda were
relaunched. And with it was launched Dukes Masala Soda, with its strong local flavour that has
the consumers wanting for more..

Dukes Refreshing Mumbai!!

Just a year into its re-launch Dukes is being loved by all Mumbaikars. While the old drink is for
nostalgia, the young are attracted to the unique flavours that Dukes offers. Be it morning, after
meal or in the evening breeze Dukes flavours refresh you every time. As Dukes consumers say
30

Dukes is an Anytime Drink!!! The sweet Raspberry loved by the Parsi community in
Mumbai is getting many new connoisseurs. The Mumbai Masala Soda appeals to all with a very
unique Indian taste. Whats more the new party mixers launched under the Dukes name have
taken the young in city by storm. No party is complete without the Classic Mojito or the Exotic
Blue Lagoon!!!

Brand Facts

Founded in 1889 by Dinshwaji Pandole a Parsi gentleman

Bought by PepsiCo in 1994

Relaunched in 2011

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 MIRINDA

2014 Brand Campaign

Mirinda has always stood for great bold taste that unleashes uninhibited fun. Taking the promise
forward, Mirinda launched two new exciting flavors- Orange Mango and Orange Masala which
appeal to the Indian palette. While Orange Mango is the perfect mix of the sweet candy taste of
mango flavor and the tanginess of original Mirinda Orange; Orange Masala tickles the taste buds
with a hint of fruit masala flavor added to Mirinda Orange. The launch was supported by a robust
360-degree campaign including outdoor, online and a consumer engagement programme to bring
alive the taste experience.

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Brand History
Mirinda is an international soft drink brand from Spain that was launched in India in 1991. The
irresistible taste of Mirinda was communicated through our 1996 Mirinda Men campaign, the
2000 Taste Pe Atka, Mirindaaaa campaign and the Taste Aisa Chaye Character Fisla Jaye
campaign of 2003. In 2008, the brand decided to up the ante and deliver a brand philosophy that
would resonate strongly with consumers. Consequently, Mirinda adopted a bold and vibrant
colour, great orangey taste and sparkling bubbles that encouraged one to be more carefree,
spontaneous and playful and occasionally give in to an impulse of uninhibited fun. This was
conveyed through the Pagalpanti Bhi Zaroori Hai campaign with Asin in 2008. In 2009,
Mirinda established orange as the core of the brand with Orange Dikha Toh Mooh Bola
Mirindaaaa.

Quick Brand Facts

1991: Mirinda Orange launched in India.

1998: Mirinda Lemon launched in India.

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MOUNTAIN DEW

Brand History
The main formula of Mountain Dew was invented in Virginia. The drink was named and first
marketed in Johnson City, Tennessee and Knoxville, Tennessee in 1948.
In India, Mountain Dew set the soft drink category ablaze in 2003 with its iconic launch
campaign Cheetah Bhi Peeta Hai.

Brand Advantage
It is a soft drink that exhilarates like no other because of its active, high-energy, extreme citrus
taste. The idea of daring, challenges, a can do attitude, adventure and exhilaration are deeply
entrenched in its brand DNA. The brand has always celebrated the bold, adventurous and

34

rebellious spirit of youth. This is reflected in the high-adrenaline advertising of the brand and its
connection to outdoor adventure.

Did You Know?

Darr Ke Aage Jeet Hai
In 2007, the brand was re-launched with a completely new, punchier formulation.
Communication aimed at forging a strong emotional connect with the audience. Thus began the
Darr Ke Aage Jeet Hai campaign, which acknowledged that fear was a very real aspect of the
world of adventure and Mountain Dew wanted young people to believe in themselves in their
moment of fear. For beyond fear lay victory.

Quick Brand Facts

Mountain Dew was invented in Virginia in 1948.

It was launched in India in 2003.

35

NIMBOOZ

Brand History
7UP Nimbooz was launched in India on the 28th of February 2009 and its folio expanded with
the introduction of its variant, 7UP Nimbooz Masala Soda. 7UP Nimbooz Masala Soda is a
unique offering that combines the authenticity of 7UP Nimbooz, cool of 7UP and the edge of
masala.

Brand Advantage
With real lemon juice, 7UP Nimbooz adds to the lemon credentials of the 7UP portfolio and
firmly establishes it as a dominant player in the juice-based drinks category. Its bubblier and
tangier cousin 7UP Nimbooz Masala Soda is a lip-smacking explosion of taste that'll refresh

36

you like no other drink can. 7UP Nimbooz Masala Soda also has the goodness of real lemon
juice, which makes it a healthy option as well.

Locally Relevant Taste

7UP Nimbooz and 7UP Nimbooz Masala Soda are great tasting products. They have capitalized
on the existing familiarity and high consumption of unpackaged / home-made nimbu pani and
deliver the same refreshment in a hygienic and convenient format. The refreshing properties of
lemon and the goodness of natural ingredients makes it an instant recharge.

Convenience and Hygiene

Available in convenient and hygienic packaging, 7UP Nimbooz and 7UP Nimbooz Masala Soda
can be enjoyed anytime, anywhere.

Quick Brand Facts

Indias first nationally-available packaged Nimbu Pani. It was launched in India in 2009.

7UP Nimbooz Masala Soda was launched in India in 2012. The product offering of Real
lemon juice + Masala + Soda gives a taste so refreshingly unique that we had to coin a new name
for it Chatpataka.

Even though the brand was launched in a small geography, the response that it has
received from consumers has been phenomenal.

During its three years of existing the brand has been able to garner a huge fan following.
Watch this space for more news from the brand.

37

SLICE

Brand History
Slice was launched in India in 1993 as a refreshing mango drink and quickly went on to become
a leading player in the category. In 2008, Slice was relaunched with a winning product
formulation that made consumers fall in love with its taste. With new pack graphics and clutterbreaking advertising, Slice has built a powerful appeal.

Brand Advantage
With the launch of the Aamsutra campaign in 2008, its winning taste and appealing pack
graphics, Slice created a great deal of excitement in its category and celebrated the indulgence in
mangoes like no other brand had done before.
38

While other players have portrayed the mango as a simple and innocent fruit, Slice celebrates the
sheer indulgence and sensuality involved in consuming a mango. The creative Aamsutra idea
communicates the experience of extreme sensuous pleasure through the act of drinking Slice.
Slice was the first brand ever in the Juice and Juice Drinks category to sign on Bollywood diva
Katrina Kaif as the brand ambassador for Slice.
In 2009, Slice took the notion of indulgence to a whole new level with the launch of the Slice
Pure Pleasure Holidays, giving its consumers a chance to win luxurious all-expenses-paid
holidays to dream European destinations like Paris, Vienna, Greece and Venice.

Quick Brand Facts

Slice was launched in India in 1993

Slice Mangola was introduced in 1994.

EXTERNAL AWARDS RECEIVED BY PEPSICO

Doc T.S.R. Murali, Head R&D, was awarded a Gold Medal by Secretary, Ministry of
Food Processing, and Government of India for his outstanding contribution in supporting R&D,
Innovation and growth of Food Processing Sector in India.

Satharia plant was awarded LEED (Leadership in Energy and Environmental Design)
Gold Green Certification by Indian Green Building Council.

India Region Finance and BIS team won UKs Adam Smith award in collaboration with
Citibank for Best practices and innovation under the section Asia Pacific Regional Award for
Best Practices in the Highly Commended category.

PepsiCo India won the award for Excellence in Developing the Leaders of Tomorrow
at the second edition of the SHRM (Society for Human Resource Management) India HR
Awards.

PepsiCo Indias Sangareddy Plant was recognized by CII with Commendation

Certificate for Strong Commitment to Excel in Food Safety in the category of Large
Manufacturing Food Businesses Beverages.
39

PepsiCo Indias Sathariya, plant won the CII Award for Outstanding Performance in Food
Safety Excellence in the Category of Rising Star; Large Manufacturing Food Businesses
Beverages.

INTRODUCTION TO CUSTOMER SATISFACTION

Satisfaction is a person`s feeling of pressure or disappointment resulting from comparing a
products perceived performance in relation to is/her expectations. if the performance falls short
of expectations, the customer is satisfied. If the performance exceeds expectations the customer
is highly satisfied. Many companies are aiming for high satisfaction because they are much less
ready to switch. Buyer`s expectations formed on the basis of past buying experience, friend`s and
associates advice and marketers and competitor`s information and promises. If marketers raise
expectations too high, the buyer is likely to be disappointed. even if the company sets
expectations too low, it won`t attract enough buyers,. So, the expectations should match the
performance.
A customer is the most important person even in any company.
A customer never dependant on company, but the company dependant on him.
40

A customer is a person who brings company his wants. It is company`s job to handle them
profitably to him and to company.
A customer is not an interruption of marketer`s work he is the purpose of it.

CUSTOMER VALUE
Our premise is the customers will buy from the firm that the perceive offers the highest
customers delivered value. Customers delivered value is the difference between total customer
value and total customer cost. Total customer value is the bundle of benefits customers expect
from a given product or service. Total customer cost is the bundle of costs consumers expect to
incur in evaluating, obtaining, using and disposing of the product or service.

CUSTOMER SATISFACTION IN SEVEN STEPS:1. Encourage face to face dealings

This is the most downright scary part of interacting with a customer. If you are not
used to this sort of thing it can be a pretty nerve-wrecking experience. Rest assured,
though, it does get easier over time. It`s important to meet your customers face to face at
least once or even twice during the course of a project
2. Respond to messages promptly and keep your clients informed
This goes without saying reality. We all know how annoying it is to wait days for
a response to an email or message. It might not always be practical to deal with all
customers` queries within the space of few hours, but at lest email or call them back and
let them know you have received their message and you will contact them about it as
soon as possible. Even if you are not able to solve a problem right away, let the customer
know you are working on it.
3. Be friendly and approachable
A fellow site pointer once told me that you can hear a smile through the phone.
This is very true. It`s very important to be friendly, courteous and to make your clients
feel like you are their friend and you are there to help them out. There will be times
when you want to beat your clients over the head repeatedly with a blunt object it

41

happens to all of us. It`s vital that you keep a clear head, respond to your clients` wishes
as best you can and at all times remain polite and courteous.

4. Have a clearly defined customer service policy

This may not be too important when you are just starting out, but a clearly defined
customer service policy ids going to save you a lot of time and effort in the long run. If a
customer has a problem, what should they do? If the first option doesnt work, then
what? Should they contact different people for billing and technical enquiries? If they
are not satisfied with any aspect of your customer service, who should the ell? There`s
nothing for annoying for a client than being passed from person to person, or not
knowing who to turn to. Making sure they know exactly what to do at each stage of their
enquiry should be of utmost importance. So make sure your customer service policy is
present on your site and anywhere else it will be useful.
5. Attention to detail
Have you ever received a happy birthday email or card from a company you were a
client of? Have you ever had a personalized sign up conformation email for a service
that you could tell was typed from scratch? These little niceties can be time consuming
and are not always cost effective but remember to do them.

6. Anticipate your clients` needs and go out of your way to help them out
Sometimes this is easier said than done! However, achieving this supreme level of
understanding with your clients will do wonders for your working relationship
7. Honour your promises
This is the most important point. The simple message: when you promise something,
deliver. Clients don`t like to be disappointed.

42

RESEARCH METHODOLOGY
Research Methodology is the systematic, theoretical analysis of the methods applied to a field
of study. It comprises the theoretical analysis of the body of methods and principles associated
with a branch of knowledge. Typically, it encompasses concepts such as paradigm, theoretical
model, phases and quantitative or qualitative techniques.
A research methodology does not set out to provide solutions - it is, therefore, not the same thing
as a method. Instead, it offers the theoretical underpinning for understanding which method, set
of methods or so called best practices can be applied to specific case, for example, to calculate
a specific result.
It has been defined also as follows:

43

1. "the analysis of the principles of methods, rules, and postulates employed by a discipline"
2. "the systematic study of methods that are, can be, or have been applied within a
discipline"
3. "the study or description of methods"

For this, sample of 100 people is taken. A questionnaire has been set which consists of a number
of questions printed in definite order. The collection of data is mainly done through schedules.

OBJECTIVES OF THE STUDY

The objective of the study is to know about the consumption behaviour of the rural consumers
regarding soft drinks.
1)
2)
3)
4)
5)
6)
7)
8)

To find out the association between age of the respondents and brand preferences.
To find the effect of discounts and coupons on the purchasing behaviour of consumers.
To study buying motive of the consumers.
To assess the tastes and preferences of different consumers.
To study the factors affecting purchase decisions.
To assess the brand awareness and loyalty of different consumers.
To find the effect on advertisement on consumers.
To study the purchase of soft drinks packs during the festivity season.
44

Research Design
A research design is the arrangement of conditions for collection and analysis of data in a manner
that aims to combine relevance to the research purpose with economy in procedure. Research
design is the conceptual structure within which research is conducted. It is the overall operational
pattern or framework of the project that stipulates what information is to be collected from which
sources by which procedure.
1. Explanatory research: - To gain familiarity with a phenomenon or to achieve new
insight into it. Studies with this object in view are termed as exploratory or formularize
research studies.

45

2. Descriptive research: - To portray accurately the characteristics of particular

individual, situation of a group. Studies with this object are view is known as descriptive
research studies.
3. Experimental research: - To determine frequently with which something occur or
with it is associate with something else. Studies with this object in view are known as
diagnostic research studies.

Considering the importance of decision areas, it was decided to undertake a descriptive

survey. It is to portray the characteristics of particular individual, situation of a group.

DESCRIPTIVE RESEARCH DESIGN

It is a scientific method which involves observing and describing the behaviour of a
subject without influencing it in any way. The importance of descriptive research design is:

To describe characteristics of a population or a phenomenon

To determine the answers to who, what, when, where and how questions.
To analyze the segment and target markets.

DATA COLLECTION
The task of data collection begins after a research problem has been defined & research design
chalked out. There are two types of data:1. Primary
2. Secondary

Primary Data:Primary data are those which are collected afresh and are collected for the first time & thus
happen to be original in character.
Primary data is collected from the following methods:46

Observation Method
Interview Method
Questionnaire Method

Secondary Data:Secondary data are those which have already been collected by someone else & which
have already passed through the statistical process.
The project includes both primary and secondary sources of data. The data collected
through these sources has been organized, analyzed and interpreted so as to draw conclusion and
arrive at appropriate recommendations.
Primary source of data includes feedback of questionnaires taken from the customers.
The secondary source of data includes websites of Pepsi, coke, Wikipedia which
contains details which is helpful for making my project report. Besides we have consulted some
magazines, journals and business newspapers.

Sample size
Sampling is necessary because it is also impossible to examine the entire population (i.e. the
entire universe) various factors such as time available cost, purpose of study etc. make it
necessary for the researchers to choose a sample. It should neither bee too small nor too big. It
should be manageable. The sample size has been from the feedback from the customers i.e.
through questionnaire method taken for present study due to time limitation.

Sample area
In this we have taken a feedback from 100 customers within Ambala city. These customers have
revealed some facts on the basis of which we have done a specific research. So the sample size is
100.
47

LIMITATIONS OF THE STUDY

Although every care has been taken and many books and magazines are conducted so hat the
results are authentic and correct, yet there may be discrepancies.
The reasons for discrepancies are given as under:1) Due to time constraint only a reasonable sample size taken and analyzed. Still a larger
sample size could increase the accuracy in the result.
2) The area of study is limited to Ambala City only. Hence the results may not be true for
other geographical areas.
3) Quality of information highly dependent on the knowledge of the respondents.
4) Cost factor.
5) The respondents were busy in their work, so the information given by them, were not
fully correct.
48

6) The information provided by them may be partial because many respondents were not
interested in filling the questionnaire.
7) The information provided by the dealer wasn`t exactly correct sometimes.

Q1. The most preferred brand in soft drink industry is?

Options
Pepsi
Coca cola
Others

Percentage
50
30
20

49

20%

Pepsi
50%

Coca-Cola
Others

30%

Fig. 1

INTERPRETATION:Pepsi is the most preferred brand with 50% of the customers, along with coca-cola 30% , while
rest 20% prefer other soft drinks.

Q2. What is the reason for choosing your brand?

Options
Taste
Advertisement
Offers
People like

Percentage
45
25
20
10

50

10%
Taste

20%

45%

Advertisement
Offers
People like

25%

Fig. 2

INTERPRETATION:Most of the people i.e. 45% prefer their particular brand due to their taste, 25% prefer due to
advertisement, 20% due to offers while the rest 10% because people like that.

Q3. How often you buy the soft drinks?

Options
Festivals
Parties
Offers
No specific reason

Percentage
30
30
20
20

51

20%

30%
Festivals
Parties
Offers

20%

No specific reason

30%

Fig. 3

INTERPRETATION:30% of the respondents buy soft drinks on festivals and parties respectively. While 20% of the
respondents buy soft drinks at the time of offers. And the rest 20% buy with no specific reason.

Q4. When brand is not available in the market then?

Options
Go for another brand
Search for the same brand
Neither search nor go for another brand

Percentage
70
20
10

52

10%

20%

Go for another brand

Search for the same brand
Neither goes nor search
70%

Fig. 4

INTERPRETATION:When a certain brand is not available in the market then in that case 70% of the customers go for
another brand, while 20% search for the same brand and the rest 10% neither search nor go for
another brand.

Q5.Which quantity of pack would you like to buy the most?

Options
300ml
500ml
1 lt
2 lt

Percentage
30
30
20
20

53

20%

30%
300 ml
500 ml
1 lt

20%

2 lt

30%

Fig. 5

INTERPRETATION:Mostly 30% of the people prefer 300ml bottle which is followed by 500 ml also preferred by
30% of the people while 1 lt and 2 lt is preferred by 20% of people respectively.

Q6. Where would you like to consume the soft drink?

Options
Home
Grocery
Restaurant
Convenience

Percentage
20
20
30
30

54

20%

30%

Home
Grocery
Restaurant
20%

Convenience

30%

Fig. 6

INTERPRETATION:20% of the people consume soft drink at home, while again 20% at grocery shop, 30% of the
people at restaurant, while the rest 30% prefer wherever they feel convenient.

Q7.Do you buy particular brand with a name?

Options
Always
Sometimes
Whichever is available

Percentage
40
30
30

55

30%
40%

Always
Sometimes
Whichever is available

30%

Fig. 7

INTERPRETATION:40% of people always prefer the same brand, they will not stick to some other brand, while 30%
of the people sometimes change their brand, while for 30% if the people it doesn`t matter
whichever brand is available.

Q8. Is buying behaviour of individuals is affected by newspaper and television?

Options
Yes
No

Percentage
70
30

56

30%
Yes
No
70%

Fig. 8

INTERPRETATION:A TV and newspaper advertisement have an impact on customers which is what 70% of the
customers feel, while 30% of the people disagree with that.

Q9. Are the consumers satisfied with the price of PepsiCo products like Pepsi, Mirinda etc.?
Options
Highly satisfied
Satisfied
Neutral

Percentage
50
35
15
57

15%

Highly
50%

Satisfied
Neutral

35%

Fig. 9

INTERPRETATION:50% of the respondents said that they are highly satisfied with the price and 35% respondents
said that they are satisfied with the price while the rest 15% remains neutral.

Q10. What would you prefer if cold drink is not available?

Options
Lassi
Beer
Juice

Percentage
10
20
50
58

Other

20

20%

10%

20%

Lassi
Beer
Juice
Other

50%

Fig. 10

INTERPRETATION:If cold drink is not available then 10% of the people would prefer lassi, 20% of the people would
prefer beer, 50% would prefer juice while the rest 20% other drinks.

Q11. Which brand has creative and appealing advertisement of soft drink industry?
Options
Pepsi
Coca cola

Percentage
70
30

59

30%
Pepsi
Coca-Cola
70%

Fig. 11

INTERPRETATION:70% of the people say that Pepsi has better advertisement appealing, while 30% say that coca
cola has better advertisement appealing.

Q12. Have you decided to purchase the product after seeing advertisement?
Options
Yes
No

Percentage
80
20

60

20%
Yes
No

80%

Fig. 12

INTERPRETATION:80% of the people said yes while the rest 20% said no as their answer.

Q13.Does discounts and coupons have an impact on the purchase of soft drinks?
Options
Yes
No
Can`t say

Percentage
80
15
5

61

5%
15%
Yes
No
Can`t say

80%

Fig. 13

INTERPRETATION:Discounts and coupons have an impact on customers, 80% of people believe that, 15% say that it
doesn`t have any impact, while 5% can`t say.

Q14. Do you purchase special packs of soft drinks on festivals?

Options
Yes
No

Percentage
70
30

62

30%
Yes
No
70%

Fig. 14

INTERPRETATION:70% of the people purchase special packs of soft drinks on festivals like Diwali etc., while 30%
of the people dont purchase.

Q15. Is your preferred brand easily available at the grocery stores close to your home?
Options
Always
Sometimes
Never

Percentage
60
30
10
63

10%

Always
30%

Sometimes
60%

Never

Fig. 15

INTERPRETATION:60% of the people say that they always get their preferred brand while 30% say that they get it
sometimes while 10% say that they never get it in the grocery shops close to their home.

Q16. Do you buy soft drinks at retail stores and food malls?
Options
Yes
No

Percentage
60
40

64

40%

Yes
No
60%

Fig. 16

INTERPRETATION:60% of the people go to retail stores and food malls for the purchase of soft drinks, while 40%
prefer it to buy nearby grocery stores.

Q17. Why do you prefer PepsiCo products like Pepsi, mirinda etc. over local brands like royal
blue etc.?
Options
Brand value
Superior quality
Easy availability

Percentage
50
45
5

65

5%

Brand Value
45%

50%

Superior Quality
Easy availability

Fig. 17

INTERPRETATION:It is thus clear from the above fact that 50% of the people prefer PepsiCo products because of
their brand value while the 45% and 5% because of superior quality and easy availability
respectively.

FINDINGS
1)
2)
3)
4)

Pepsi is the most favourite brand of the consumers followed by coca cola.
Pepsi is the most favourite flavor followed by Dew, Limca etc.
Dew is the second most preferred flavor among the respondents.
Majority of the respondents go for another brand when their brand is not available in the

5)
6)
7)
8)

market.
300 ml. packs are more preferred among the respondents followed by 500ml, 1 lt and 2 lt.
Respondents consume more soft drinks on parties, functions and in marriages.
More soft drinks are consumed by drinkers.
Most of the consumers buy Lassi, Fruit juice, and Beer when they do not buy soft drink.
66

9) Pepsi is most preferred brand among the age group 20 to 30 and all the age groups,
followed by coca cola and others.
10) Majority of respondents buy special packs at the season of festivals.
11) Majority of the respondents are purchasing the products after seeing the advertisement.
12) Juice is mostly preferred by the customers when soft drinks are not available in the
market.

CONCLUSION
By concluding the study about the topic Consumer satisfaction towards soft drink industry
with special reference to Pepsi and Coca-Cola it is found that preference for soft drinks
among the people is too good. Coca Cola and Pepsi is one of the most preferred brands in
Ambala city. The advertising activities of coca cola and Pepsi are very strong. The marketing
management of both brands is very efficient in creating a very strong brand image among the
customers. It takes time to time feedback from customers and upgrades it policies depending
upon customer needs and preferences. It caters the needs of all segments of people in the society
especially youths and old people.

67

SUGGESTIONS
1) The company must concentrate on creating awareness for Limca, Sprite etc. which are
not preferred by most consumers.
2) Even all the coca cola products are not available in grocery shops. Hence company
should focus on improving the distribution of each and every variety of brands to these
outlets.
3) The advertisement of Pepsi and coca cola should be more attractive as that of its
competitors.
4) Coca cola needs aggressive marketing to compete with Pepsi.
5) During the festive seasons, more discounts and attractive offers need to be provided to the
consumers.
6) 300 ml and 500 ml bottle should be mostly in supply.
7) There should also be an introduction of new flavors and varieties by both the brands.
68

8) Changes in the shape of the bottles should be frequently made for attracting the
consumers.
9) Special recharge schemes should be provided to the consumers with the soft drinks to
increase the sales.
10) Prices of cans of Pepsi, Coca-Cola etc. should be reasonable so that all category
consumers can buy cans as per their requirement.
11) Different quantity packs should be available at the time of festivals or occasions.

BIBLIOGRAPHY

www.pepsi-india.com
www.coca-cola.worldwide.com
www.coca-cola-india.com
www.pepsico-india.com
www.bob.com
www.pepsico.com
www.pepsizone.yahoo.com

69

QUESTIONNAIRE
RESPONDENT PROFILE:
Name

------------------------------------------------------------

Address

------------------------------------------------------------

Age

------------------------------------------------------------

Education Level

------------------------------------------------------------

Occupation

------------------------------------------------------------

Q1. The most preferred brand in soft drink industry is?

Ans. 1) Pepsi

2) Mountain dew

3) Coca cola

Q2. What is the reason for choosing your brand?

70

4) Others

Ans. 1) Taste

2) Advertisement

3) Offers

4) People like

Q3. How often you buy the soft drinks?

Ans. 1) Daily

2) Occasionally

Q4. When brand is not available in the market then?

Ans. 1) Go for another brand

2) Search for same brand

3) Neither goes nor search

Q5.Which quantity of pack would you like to buy the most?
Ans. 1) 300ml

2) 500ml

3) 1 lt

4) 2 lt

Q6. Where would you like to consume the soft drink?

Ans. 1) Home

2) Grocery

3) Restaurant

4) Convenience

Q7. Do you buy particular brand with a name?

Ans. 1) Always

2) Sometimes

3) Whichever is available

Q8. Is buying behaviour of individuals is affected by newspaper and television?

Ans. 1) Yes

2) No

Q9. Are the consumers satisfied with the price of PepsiCo products like Pepsi, Mirinda etc.?
Ans. 1) Highly satisfied

2) Satisfied

3) Neutral

Q10. What would you prefer if cold drink is not available?

Ans. 1) Lassi

2) Beer

3) Juice

4) Other

Q11. Which brand has creative and appealing advertisement of soft drink industry?
Ans. 1) Pepsi

2) Coca cola

3) Limca and Mirinda

4) Dew and Sprite

Q12. Have you decided to purchase the product after seeing advertisement?

71

Ans. 1) Yes

2) No

Q13.Does discounts and coupons have an impact on the purchase of soft drinks?
Ans. 1) Yes

2) No

3) Can`t say

Q14. Do you purchase special packs of soft drinks on festivals?

Ans. 1) Yes

2) No

Q15. Is your preferred brand easily available at the grocery stores close to your home?
Ans. 1) Always

2) Sometimes

3) Never

Q16. Do you buy soft drinks at retail stores and food malls?
Ans. 1) Yes

2) No

Q17. Why do you prefer PepsiCo products like Pepsi, Mirinda etc over local brands like royal
blue etc.?
Ans. 1) Brand value

2) Superior quality

72

3) Easy availability