Project Report

On
Brand Equity
Comparative study on Coco cola and Pepsi
Submitted By
Radhika Shankar Malakar

(Roll No: 35)

Under the Guidance of

Mrs. Kripa Rai
(Internal Faculty)

BMS Department
Bhavans College

Submitted in partial fulfillment of BMS course of

MUMBAI UNIVERSITY

MUMBAI

BHAVANS COLLEGE
BACHELORS OF MANAGEMENT STUDIES,ANDHERI(W)
MUMBAI
MONTH - YEAR
 DECLARATION

I, Radhika Malakar bearing RollNo: 35 a bonafide student of BHAVANS

COLLEGE, Andheri-West (affiliated to Mumbai University) hereby declare that this
Project Report entitled ‗TOPIC TITLE‟, is my individual and original work and that no
part of this project report has ever been submitted for the award of any other degree,
diploma, fellowship or any other similar titles.

Place: Mumbai Radhika Malakar

Date: Roll No: 35

 BHAVANS COLLEGE

BACHELORS OF MANAGEMENT STUDIES

ANDHERI (W), MUMBAI
CERTIFICATE OF THE GUIDE
This is to certify that the Summer Project Report on ‗TOPIC TITLE‟ is
prepared by Radhika Malakar (Roll No 35) in partial fulfillment of the requirement for
the award of the degree in Bachelors Of Management Studies under my guidance and
supervision.

Place: Mumbai Prof. Kripa Rai

(Guide)

BMS - Department
Bhavans College

Andheri(W), Mumbai
 BHAVANS COLLEGE
CERTIFICATE
This is to certify that Radhika Malakar is a bonafide student of Bachelors Of
Management Studies course of the College, affiliated to Mumbai University. This
Project Report on ―Brand Equity Comparative study on Coco cola and Pepsi‘, is prepared
by him under the guidance of Name of guide, Faculty Bhavans College, Andheri(W),
Mumbai in partial fulfillment of the requirement of the award of the degree of Bachelors
Of Management Studies of Mumbai University.

Place: Mumbai Co -ordinator Date:

BMS, BHAVANS COLLEGE

Place: Mumbai Principal

Date: BHAVANS COLLEGE

‗Valued By‟

Sl. No. Name of the Examiner Signature Date

1.

2.
 ACKNOWLEDGEMENT
The satiation and euphoric that accompany the successful completion of task would be
incomplete without the mention of the people who made it possible. So with immense
gratitude I acknowledge all those whose guidance and encouragement crowned my
efforts with success.

With deep sense of gratitude and indebtedness I sincerely thank Name of the Guide
(guide), BMS department, BHAVANS COLLEGE my project guide for giving me
valuable suggestions and advice throughout the execution of the report.

I would like to thank name of principal, Principal, BHAVANS COLLEGE for her
everlasting support and motivation.

I would like to thank name of the coordinator, BMS department & all the faculty
members of BMS Department of BHAVANS COLLEGE.

Last but not the least I would like to thank my parents, friends without whose co-
operation this project report wouldn‘t have possible.

Radhika Malakar

Roll No.35
1. INTRODUCTION:

People often ask me, ―What is brand equity?‖ There are many ways to answer this. Some
would say it‘s everything associated with the brand that adds to or subtracts from the
value it provides to a product or service. Brand Equity is based on the concept of "Brand
Management". Brand management is the application of marketing techniques to a
specific product, product line, or brand. Brand management begins with having a
thorough knowledge of the term ―brand‖. It includes developing a promise, making that
promise and maintaining it. It means defining the brand, positioning the brand, and
delivering the brand. Brand management is nothing but an art of creating and sustaining
the brand. Branding makes customers committed to your business. A strong brand
differentiates your products from the competitors. It gives a quality image to your
business. Brand management includes managing the tangible and intangible
characteristics of brand. Brand includes a lot of concepts like "Branding", "Brand
Equity", "Brand Positioning"," Brand Identity", "Brand Image", "Brand Personality", etc
that helps to overcome all branding problems of the company.

Others would emphasize the financial value of the brand asset. Still others stress the
consumer loyalty or price premium generated by brand equity. Some even talk about the
permission and flexibility a brand gives an organization to extend into new product and
service categories. Brand Equity exists as a function of consumer choice in the market
place. The concept of Brand Equity comes into existence when consumer makes a choice
of a product or a service. It occurs when the consumer is familiar with the brand and
holds some favourable positive strong and distinctive brand associations in the memory.
Brand Equity can be determined by measuring: the Returns to the Share-Holders,
Evaluating the Brand Image for various parameters that are considered significant,
Evaluating the Brand‘s earning potential in long run, By evaluating the increased volume
of sales created by the brand compared to other brands in the same class. The price
premium charged by the brand over non-branded products, From the prices of the shares
that an organization commands in the market (specifically if the brand name is identical
to the corporate name or the consumers can easily co-relate the performance of all the
individual brands of the organization with the organizational financial performance.
Brand equity requires a consistent relationship over time, trust, and an emotional
connection. Brand equity creates a relationship and a bond that grows over time and is
very strong. It is often so strong that it compensates for performance flaws: an out-of-
stock situation, poor customer service, a product that falls apart, inconvenient store hours,
a higher-than-average-price, etc.

1.1 Introduction to the problem:

The project is based on the concept of "Brand Management". Brand management is the
application of marketing techniques to a specific product, product line, or brand. Brand
management begins with having a thorough knowledge of the term ―brand‖. It includes
developing a promise, making that promise and maintaining it. It means defining the
brand, positioning the brand, and delivering the brand. Brand management is nothing but
an art of creating and sustaining the brand. Branding makes customers committed to your
business. A strong brand differentiates your products from the competitors. It gives a
quality image to your business. Brand management includes managing the tangible and
intangible characteristics of brand. Brand includes a lot of concepts like "Branding",
"Brand Equity", "Brand Positioning"," Brand Identity", "Brand Image", "Brand
Personality", etc that helps to overcome all branding problems of the company.

These project is based on " Brand Equity ". It is the value and strength of the Brand that
decides its worth. It can also be defined as the differential impact of brand knowledge on
consumers response to the Brand Marketing. The project report deals with the
comparative study of Coco Cola (Sprite) and Pepsi. "Coco Cola" is company which was
set up at 1892 by Dr. John Stith Pemberton in Atlanta, Georgia, on May 8, 1886,a local
pharmacist, produced the syrup for Coca-Cola®, and carried a jug of the new product
down the street to Jacobs' Pharmacy, where it was sampled, pronounced "excellent" and
placed on sale for five cents a glass as a soda fountain drink. "Pepsi Company" was
incorporated in 1919, is a global food and beverage company. The Company makes,
markets, sells and distributes a range of foods and beverages in more than 200 countries
and territories. PepsiCo is organized into four business units: PepsiCo Americas Foods
(PAF), which includes Frito-Lay North America (FLNA), Quaker Foods North America
(QFNA) and all of its Latin American food and snack businesses (LAF); PepsiCo
Americas Beverages (PAB), which includes all of its North American and Latin
American beverage businesses; PepsiCo Europe, which includes all beverage, food and
snack businesses in Europe, and PepsiCo Asia, Middle East and Africa (AMEA), which
includes all beverage, food and snack businesses in AMEA.

Statement of the problem:

―The project report is based on the comparative study of Coco Cola and Pepsi company.
The project gives brief description of the customer's perception by elaborating the
different aspects such as impact of marketing activities on the minds of the customers,
their likes, dislikes, preferences etc‖

1.2 Literature Review:

Managing Brand Equity in Rapidly Changing Markets

Several years ago, brand equity received the ultimate accolade in a capitalist society: a
dollar value- sometimes listed with other intangible assets in the annual report. The
highest valued brand today is Coca Cola. Its value according to Financial World is $39
billion. That's the extra margin people will pay to get the real thing over a generic brand.
On the other hand, IBM's brand, though third in value this year, was by one estimate
actually negative last year. In other words, if you put the IBM logo on the product, it
actually reduced the value of that product versus an unknown brand.

Both of these companies, Coca Cola and IBM, have gone through enormous change, yet
one managed to build its equity and one lost it. Though each company's management
decisions and style had something to do with the outcomes, they also faced different
types of rapid change, one far more challenging than the other.

Coca Cola was taking its core product, Coke, and expanding the product in new form
factors and new overseas markets. The brand promise stayed the same whether it was
sold in a Coke store in New York or a road side stand in Mongolia - refreshment, good
times, and pure Americana. While maintaining a brand's strength through all this
continuous change is certainly not a no-brainer - witness the New Coke debacle and the
Pepsi Challenge - a brand encountering this kind of rapid change is easier to manage than
the kind of change IBM faced: disruptive change.
Disruptive change occurs when a stable market encounters a new technology or social
phenomenon that totally alters the solutions customers will demand. The digitization of
video is a perfect example: it will alter the way we consume cable and broadcast
programming, the way we rent movies, the way we use our computers - and companies in
these industries will have to change rapidly and radically. Another example: The social
phenomenon of "the new temperance" has led to whole new beverage categories as
"alcohol free beers" as well as the spectacular growth of coffee bars. Bars that survived
have espresso machines installed. Our public libraries are going through this kind of
brand redefinition: once the repository of books, their focus on book acquisition dropped
while the focus on electronic access and community activities went up, and now they are
public media and Internet access centers as much or more than they are lenders of books.

Managing a brand through disruptive change requires guarding the historical brand
promise - in IBM's case, a single source supplier for all computing needs, safety, security
- while expanding the brand promise (and product line) to incorporate the new disruptive
technology, in IBM's case, client server networking between disparate types of
equipment.

Looking at some of the world's strongest brands, they have each distinguished themselves
from all competitors in the market. And each has been managed through periods of rapid
change which have actually strengthened the brand. Despite morphing of markets and
products, we immediately recognize each brand's promise, just by looking at a name and
symbol - both in terms of product category and in emotional benefit.

Think of the technology names with which we are familiar. Intel makes the world's
fastest processors. Branding through a period of continuous change has so strongly
associated this symbol with attributes of speed and power that people buying 286
computers are still looking for Intel Inside. It gives buyers the emotional benefit of
feeling smart, like they know what they're doing when they buy a PC, and secure that
they're buying the best. That brand has so much equity that even the Pentium scandal
where headlines screamed that Pentium doesn't calculate accurately didn't slow Intel
sales.
So one of the benefits of branding is protection from customer wrath in times of trouble.
I've talked about the case for higher margins - certainly true for Intel. A strong brand also
yields higher repurchase rates, because buyers tend to be risk averse, and why try
something new if you already know and like the brand you've bought before.

Continuing with the Intel brand example: Intel gets better productivity from its marketing
efforts because it doesn't have to spend any time or money explaining what Intel is. You
see a banner for Intel at a trade show and all it has to say is Intel. An ad for Intel products
can really focus on the products and benefits and doesn't have to explain Intel. Best of all,
every headline, every claim has more power and credibility because it comes from Intel.

By Carol Holding

The Language Of Branding: Brand Equity

Brand Equity is the commercial value of all associations and expectations (positive and
negative) that people have of an organization and its products and services due to all
experiences of, communications with, and perceptions of the brand over time. This value
can be measured in several ways: as the economic value of the brand asset itself, the price
premium (to the end consumer or the trade) that the brand commands, the long term
consumer loyalty the brand evokes, or the market share gains it results in, among many
others. From an economist‘s perspective, brand equity is the power of the brand to shift
the consumer demand curve of a product or service (to achieve a price premium or a
market share gain).

To use a metaphor, brand equity is like a pond. People may not know how long the pond
has been around or when it first filled with water, but they know that it supports life, from
fish and frogs to ducks and deer. It also may be a source of recreation, irrigation and
possibly even human drinking water. Clearly it is a valuable resource. But many people
take the pond for granted. It seems as if nothing can diminish its supply of water, but yet
we sometimes notice that it rises with the spring rains or lowers after a long draught or
excessive overuse for irrigation. Brand equity is a reservoir of goodwill. Brand building
activities consistently pursued over time will ensure that the reservoir remains full while
neglecting those activities or taking actions that might deplete those reserves will reduce
the reservoir, imperceptibly at first, but soon all too noticeably until it is too late and all
that is left is mud.

By Brad Van Auken,

The Blake Project

A Brand Is A Friend

People often ask me, ―What is brand equity?‖ There are many ways to answer this. Some
would say it‘s everything associated with the brand that adds to or subtracts from the
value it provides to a product or service. Others would emphasize the financial value of
the brand asset. Still others stress the consumer loyalty or price premium generated by
brand equity. Some even talk about the permission and flexibility a brand gives an
organization to extend into new product and service categories. While all of these are
very important parts of brand equity, I think a story is the best way to illustrate what
brand equity is.

Imagine you are having lunch with a long-time and very good friend. Several times
throughout the lunch, she makes disparaging and sarcastic remarks that make you feel
bad. You think to yourself, ―This just isn‘t like her. She must be having a bad day.‖ You
meet with her again a week or two later, and again she acts ornery and negative. You
think to yourself, ―Something must be going on in her life that she‘s really struggling
with.‖ You might even ask her if everything is all right. She snaps back, ―Of course it is.‖

Your interaction with her continues in this vein over the next couple of months. You
continue to try to be supportive, but she‘s definitely getting on your nerves. After many
meetings and much interaction, you finally decide that she‘s a changed person and
someone with whom you prefer to spend less and less time. You may get to this point
after a few months, or perhaps even after a year or more. She doesn‘t change, and
eventually the relationship peters out.

By Brad Van Auken,

The Blake Project

1.3 Need and Purpose of Study:

Determining the need and purpose of the study is very important aspect and it should be
done effectively and accurately. The need and purpose are as follows:

 To understand the brand value of Pepsi and Coca Cola in the minds of customers.

 To study the brand equity measurement method.

 To study the evaluation technique of brand equity.

 To understand the importance of the brand equity of Pepsi and Coca Cola.

 To compare the brand equity of Pepsi and Coca Cola.

1.4 Objectives:-

Primary Objective:

The primary objective of this project report is to make comparative study of the
brand equity of Coco cola and Pepsi Company.

Secondary Objective:

 To study the value of the product (Coco cola & Pepsi) in the minds of the customer.

 To find out customer preference about Coco cola & Pepsi

 To study awareness of brand switch

 To study factor influencing brand power of Coco cola & Pepsi

 To determine the most important factor which influencing purchasing decision

 To offer suggestion to the Coco cola & Pepsi & to improve its activities
1.5 Scope of the study:

By 2020, branding will become the most significant value driver for boardrooms.
Branding is already a very effective catalyst for better leadership; and branding helps the
boardroom drive its shared vision. The primary objective of boardrooms is to build and
sustain shareholder value and deliver competitive returns to shareholders. They must
therefore manage by metrics, and balance short and long-term perspectives and
performance. Brand equity is the combined measure of brand strength and consists of
knowledge, preferences and financial considerations. Each of the measures under these
three metrics is critical and the boardroom must ensure the brand portfolio scores highly
in each to optimize its financial outcome. In the coming years the concept of measuring a
brand‘s awareness and associations through the many stages of recognition, aided, unaided will
be the top of mind recall.

1.6 METHODOLOGY OF STUDY

SAMPLING UNIT: The survey was conducted on all the Pepsi and Coca Cola
customer located in different areas of Mumbai

SAMPLE SIZE: The survey was conducted with the 20 respondents from different areas of
Mumbai

RESEARCH DESIGN: Research design is a detailed blue print used to guide the
research study towards its objectives. The process of designing a research study involves
many interrelated decisions. The most significant decision is the choice of research approach
as it determines how the information will be obtained.

―A research design is the arrangement of conditions for collection and analysis data
in a manner that aims to combine relevance to the researcher purpose with economy in
procedure‖.

It constitutes the blueprint for the collection, measurement and analysis of data. As
such the design includes an outline of what the researcher will do form writing the hypothesis
and its operational implication to the final analysis of data.
 More explicitly, the design decisions happen to be in respect of;

 What is the study about?

 Why is the study being made?

 Where will the study be carried out?

 What type of data is required?

 Where can the data are found?

 What periods of time will the study include?

 What will be the sample design?

 How will the data be analyzed?

 In what style will the report be prepared?

 What techniques of data collection will be used?

The Research Design undertaken for the study is Descriptive one. A study, which wants
to portray the characteristics of a group or individuals or situation, is known as Descriptive
study. It is mostly qualitative in nature.

TYPES OF DATA COLLECTED

 Primary Data

Questionnaires are prepared and telephone, personal interview was

conducted. Most of the questions are consist of multiple choices. The structured interview
method was undertaken. The interview was conducted in English as well as in Tamil. Proper
care was taken to frame the interview schedule in such a manner it should be easily
understood in view of educational level of the customer & agent. Generally 50 questions are
prepared and asked to the customer and agent
  Secondary Data

Secondary data was collected from Internets, various books,

Journals, and Company Records. Secondary data is also known as second hand data.
These data are readily available but such data lacks accuracy and reliability. Such kind of
data is mostly preferred by students and companies.

QUESTIONNAIRE CONSTRUCTION

Questionnaires were constructed based on the following types

Open ended questions

Close ended questions

Multiple choice questions

DEFINING THE POPULATIONS

The Population or Universe can be Finite or infinite. The population is said to

be finite if it consist of a fixed number of elements so that it is possible to enumerate it in its
totality. So In this projects consist of finite population.

1.7 SAMPLING PLAN

A sampling plan is a definite design for obtaining a sample from the sampling
frame. It refers to the technique or the procedure the researcher would adopt in selecting
some sampling units from which inferences about the population is drawn. Sampling design
is determined before any data are collected.

Convenient Sampling technique was adopted. In this method the researcher select
those units of the population in the sample, which appear convenient to him or the
management of the organization where he is conducting research.

In these project report the sampling plan adopted is 30 respondents between the age
group 18 – 45.
Limitation of the Study:

 Due to geographical and demographic constraints we did not meet more respondents

 As Coco Cola and Pepsi is enjoys a high brand equity in the might bias the findings

 Most of the customer did not spend more time in the questionnaire so it might affect the
quality of the data collection.

 The study is based upon small population like 30 samples.

1.8 CHAPTERISATION:

SR.NO CHAPTER NO TITLE

1 1 INTRODUCTION
2 1.1 INTRODUCTION TO THE PROBLEM
3 1.2 REVIEW OF LITERATURE
4 1.3 NEED AND PURPOSE OF STUDY
5 1.4 OBJECTIVE OF STUDY
6 1.5 SCOPE OF STUDY
7 1.6 METHODOLOGY
8 LIMITATION
9 1.7 SAMPLING PLAN
10 1.8 CHAPTERIZATION
11 2 INDUSTRY AND COMPANY PROFILE
12 2.1 BACKGROUND
13 2.2 INTRODUCTION TO THE GROUP
14 2.3 INTRODUCTION TO THE COMPANY
15 HISTORY
16 BRAND PORTFOLIO
17 LOGO
18 SLOGAN
19 ADVERTISING
20 COMPETITORS
21 BRAND EQUITY OF COCO COLA
22 BRAND EQUITY OF PEPSI
23 COMPARISION OF BRAND EQUITY OF
24 PEPSI AND COCO COLA COMPANY
25 3 CONCEPTUAL FRAMEWORK
26 4 DATA ANALYSIS AND INTERPRETATION
27 5 FINDINGS RECOMMENDATION AND
28 CONCLUSION
29 BIBLOGRAPHY
30 ANNEXURE
2. INDUSTRY AND COMPANY PROFILE:

The beverage industry in India occupies USD 230 million market in the USD 65 billion
food processing industry in India. Coca cola, Pepsi, and Nestle are the leading beverage
brands that have been ruling the Indian beverage market since past few decades. Among
all the beverages, tea and coffee are manufactured as well as exported heavily in the
international markets succumbing to the individual demands around the world. The food
processing industry in India has a total turn over of around USD 65 billion which includes value
added products of around USD 20.6 billion.

Fruit juices, pulp and concentrates, and sauces or ketchups are doing very well in the
beverage market in India for the past few years. Various milk products, health beverages,
beer, and country liquors have also been contributing largely in the rising demand of
beverages in India. The leading beverage companies in India are also exporting various
products especially tea and coffee to the international markets every year. Tea and coffee
have registered an excellent growth in the Indian beverage market as these are the most
preferred drinks purchased excessively around the world. Among all the leading beverage
companies in India, Coca cola has accounted for a thriving growth since its inception. It
occupies around 60 percent of the carbonated drink sector in the Indian beverage
industry. Another predominant brand in beverages is Nestle India Limited which
occupies 61.85 percent of the total Nestle S.A. Switzerland. The Nestle products are
hugely exported to Russia apart from selling in the domestic market.
2.1 BACKGROUND:

The taste factor in tea varies according to the taste of individuals in different countries
and the beverage companies in India manufacture the products in accordance with the
taste of the individuals. For example, the inhabitants in the southern parts of India prefer
dust tea whereas the inhabitants in the western part of India prefer loose tea. The
Southern India also prefers coffee a lot. The production capacity of the total packaged
coffee market is 19,600 tonnes which is approximately a USD 87 million market. The
soft drink market such as carbonated beverages and juices constitutes around USD 1
billion producing 284 million crates per year. In the peak season, the consumption
capacity reaches 25 million creates per month and during off season the same goes down
to 15 million crates in a month. Pepsi and Coca cola are the two leading brands in the
Indian market. The mineral water market in India is a USD 50 million industry and
produces 65 million crates. Around 4.9 million crates is usually consumed each month
but it rises to 5.2 million crates in the peak season.

In the past half-century, the food and beverage industry has blossomed from a collection
of mom-and-pop operations to a trillion-dollar powerhouse led by huge international
corporations. Familiar names like Coca-Cola, Starbucks and McDonald's can be found in
every corner of the globe. The overarching theme dominating the food and beverage
industry is exploding global demand and rapidly rising food prices. The breakneck
economic growth of countries such as China, India, Brazil and Vietnam gives billions of
people the ability indulge in ways previously enjoyed only by those in developed nations.
A massive influx of consumers onto the global food market has resulted in a rapid and
sustained increase in food prices, stoking global inflation.

The related shift to ethanol and other bio-diesels in the face of rapidly rising energy
prices has only exacerbated the world's food inflation headache. Although some members
of the food and beverage industry (primarily farmers and agribusinesses) benefit from
higher prices, most corporations in the industry have seen their cost of doing business
increase, biting into profit margins. These higher costs are passed, in part, onto
consumers, who find their discretionary spending restricted when they must spend a
larger chunk of their paycheck at restaurants and grocery stores. So, just as oil prices are a
key economic indicator, so too are the prices of key agricultural commodities such as
corn, wheat, and soybeans.

2.2 INTRODUCTION TO THE GROUP:

THE COCA-COLA COMPANY:

The Coca-Cola Company is an American

multinational beverage corporation and manufacturer,
retailer and marketer of non-alcoholic beverage
concentrates and syrups. The company is best known
for its flagship product Coca-Cola, invented in 1886 by
pharmacist John Stith Pemberton in Columbus, Georgia.[3] The Coca-Cola formula and
brand was bought in 1889 by Asa Candler who incorporated The Coca-Cola Company in
1892. Besides its namesake Coca-Cola beverage, Coca-Cola currently offers more than
500 brands in over 200 countries or territories and serves over 1.7 billion servings each
day.[4]

The company operates a franchised distribution system dating from 1889 where The
Coca-Cola Company only produces syrup concentrate which is then sold to various
bottlers throughout the world who hold an exclusive territory. The Coca-Cola Company
owns its anchor bottler in North America, Coca-Cola Refreshments.

The company is headquartered in Atlanta, Georgia, United States. Its stock is listed on the
NYSE and is part of DJIA, S&P 500 Index, the Russell 1000 Index and the Russell 1000 Growth
Stock Index. Its current chairman and chief executive is Muhtar Kent.

The company produces concentrate, which is then sold to licensed Coca-Cola bottlers
throughout the world. The bottlers, who hold territorially exclusive contracts with the
company, produce finished product in cans and bottles from the concentrate in
combination with filtered water and sweeteners. The bottlers then sell, distribute and
merchandise Coca-Cola to retail stores and vending machines. Such bottlers include Coca-
Cola Enterprises, which is the largest single Coca-Cola bottler in North America and
western Europe. The Coca-Cola Company also sells concentrate for soda fountains to
major restaurants and food service distributors.

PEPSI COMPANY:

PepsiCo Inc. is an American multinational

corporation headquartered in Purchase, New York,
United States, with interests in the manufacturing,
marketing and distribution of grain-based snack
foods, beverages, and other products. PepsiCo was
formed in 1965 with the merger of the Pepsi-Cola
Company and Frito-Lay, Inc. PepsiCo has since
expanded from its namesake product Pepsi to a
broader range of food and beverage brands, the largest of which include an acquisition of
Tropicana in 1998 and a merger with Quaker Oats in 2001—which added the Gatorade
brand to its portfolio.

As of January 2012, 22 of PepsiCo's product lines generated retail sales of more than $1
billion each,[3] and the company's products were distributed across more than 200
countries, resulting in annual net revenues of $43.3 billion. Based on net revenue,
PepsiCo is the second largest food & beverage business in the world. Within North
America, PepsiCo is ranked (by net revenue) as the largest food and beverage business.

Indra Krishnamurthy Nooyi has been the chief executive of PepsiCo since 2006, and the
company employed approximately 297,000 people worldwide as of 2011. The company's
beverage distribution and bottling is conducted by PepsiCo as well as by licensed bottlers
in certain regions. PepsiCo is a SIC 2080 (beverage) company.
2.3 INTRODUCTION TO THE COMPANY:

COCO COLA COMPANY:

The Coca-Cola Company is an American multinational beverage corporation and

manufacturer, retailer and marketer of non-alcoholic beverage concentrates and syrups.[2]
The company is best known for its flagship product Coca-Cola, invented in 1886 by
pharmacist John Stith Pemberton in Columbus, Georgia.

HISTORY:

19th Century Historical Origins:

Coca-Cola founders Asa G. Candler and Dr. John S.

Pemberton are seen together at Asa G. Candler &
Co. pharmacy, 47 Peachtree St., Atlanta in the only
extant albumen photograph from 1888. Also shown
is the biography of Candler written by his son,
Charles Howard Candler.

Believed to be the first coupon ever, this ticket for a free glass of Coca-Cola was first
distributed in 1888 to help promote the drink. By 1913, the company had redeemed 8.5
million tickets. This Coca-Cola advertisement from 1943 is still displayed in the small
city of Minden, Louisiana.

The prototype Coca-Cola recipe was formulated at the Eagle Drug and Chemical
Company, a drugstore in Columbus, Georgia, by John Pemberton, originally as a coca wine
called Coca. He may have been inspired by the formidable success of Vin Mariani, a
European coca wine.

In 1886, when Atlanta and Fulton County passed prohibition legislation, Pemberton
responded by developing Coca-Cola, essentially a nonalcoholic version of French Wine
Coca.[8] The first sales were at Jacob's Pharmacy in Atlanta, Georgia, on May 8, 1886.[9]
It was initially sold as a patent medicine for five cents a glass at soda fountains, which
were popular in the United States at the time due to the belief that carbonated water was
good for the health. Pemberton claimed Coca-Cola cured many diseases, including
morphine addiction, dyspepsia, neurasthenia,
headache, and impotence. Pemberton ran the
first advertisement for the beverage on May 29
of the same year in the Atlanta Journal.

By 1888, three versions of Coca-Cola – sold by

three separate businesses – were on the market.
A copartnership had been formed on January 14, 1888 between Pemberton and four
Atlanta businessmen: J.C. Mayfield, A.O. Murphey; C.O. Mullahy and E.H. Bloodworth.
Not codified by any signed document, a verbal statement given by Asa Candler years
later asserted under testimony that he had acquired a stake in Pemberton's company as
early as 1887.

Asa Candler, however, eventually took on a more formal position by being part of the
Coca-Cola Company incorporation filed in the Fulton County Superior Court on March
24, 1888. This action included Charley Pemberton and Woolfolk Walker, along with the
latter's sister, Margaret Dozier. The four made up the original shareholders for "Coca-
Cola Company," a Georgia corporation. All parties held copies of the Coca-Cola recipe
and could continue to use the formula separate of each other.

Pemberton, though, had declared that the name "Coca-Cola" belonged solely to his son
Charley. The situation was quite agitating to both Candler and Walker, and quickly
placed the two at odds with Charley Pemberton. What further caused friction over this
issue was that John Pemberton variously forgot he had actually signed over the sole rights
to the "Coca-Cola" name to his son Charley earlier. Pemberton's ongoing health
problems, compounded by his morphine addiction brought about from his old Civil War
injury, made the situation difficult.

Charley Pemberton's record of control over the "Coca-Cola" name was the underlying
factor that allowed for him to participate as a major shareholder in the March 1888 Coca-
Cola Company incorporation filing made in his father's place. More so for Candler
especially, Charley's position holding exclusive control over the "Coca Cola" name
continued to be a thorn in his side.
Asa Candler's oldest son, Charles Howard Candler,
authored a book in 1950 published by Emory
University. In this definitive biography about his
father, Candler specifically states: "..., on April 14,
1888, the young druggist [Asa Griggs Candler]
purchased a one-third interest in the formula of an
almost completely unknown proprietary elixir
known as Coca-Cola."

The deal was actually between John Pemberton's son Charley and Walker, Candler & Co.
- with John Pemberton acting as cosigner for his son. For $50 down and $500 in 30 days,
Walker, Candler & Co. obtained all of the one-third interest in the Coca-Cola Company
that Charley held, all while Charley still held on to the name. After the April 14th deal,
on April 17, 1888, one-half of the Walker/Dozier interest shares were acquired by
Candler for an additional $750.

Charles Howard Candler's statement that April 14, 1888 was the date his father secured a
"one-third interest in the formula" held by Charley Pemberton for the then obscure Coca-
Cola elixir, none-the-less confirms this event was a major turning point for Asa Candler
and his interests in Coca-Cola. This, too, was a most auspicious occasion that Asa
Candler would have especially wanted to preserve in an 'official' photograph. By this
time the "Coca-Cola" syrup-making apparatus had already been moved from Joe Jacob's
pharmacy to the basement of Candler's larger 47 Peachtree Street location, where the
drink's ever increasing syrup-bottling demands could be better handled.

In 1910, Asa Candler had ordered all corporate documents pertaining to the first Coca-
Cola Company burned. An original 1888 photograph shows the very beginnings of the
Coca Cola Company, and formerly was the personal property of Asa Griggs Candler.
In 1914, Margaret Dozier, as co-owner of the
original Coca-Cola Company in 1888, brazenly came
forward to claim her signature on the 1888 Coca-
Cola Company bill of sale had been forged.
Subsequent analysis of certain similar transfer
documents had also indicated John Pemberton's
signature was most likely a forgery, as well, which
some accounts claim was precipitated by his son Charley.

In 1892, Candler set out to incorporate a second company; "The Coca-Cola Company"
(the current corporation). When Candler had the earliest records of the "Coca-Cola
Company" burned in 1910, the action was claimed to have been made during a move to
new corporation offices around this time.

The loss of the early corporate records further obscured the 1888 corporation's legal
origins. Only one sole original "ASA G. CANDLER & CO." photograph from 1888
remains, and that example Candler at one time kept at his private home outside of
Atlanta.

After Candler had gained a better foothold of Coca-Cola in April 1888, he nevertheless
was forced to sell the beverage he produced with the recipe he had under the names
"Yum Yum" and "Koke". This was while Charley Pemberton was selling the elixir,
although a cruder mixture, under the name "Coca-Cola", all with his father's blessing.
After both names failed to catch on for Candler, by the summer of 1888, the Atlanta
pharmacist was quite anxious to establish a firmer legal claim to Coca-Cola, and hoped
he could force his two competitors, Walker and Dozier, completely out of the business, as
well.

When Dr. John Stith Pemberton suddenly died on August 16, 1888, Asa G. Candler now
sought to move swiftly forward to attain his vision of taking full control of the whole
Coca-Cola operation.

Charley Pemberton, an alcoholic, was the one obstacle who unnerved Asa Candler more
than anyone else. Candler is said to have quickly maneuvered to purchase the exclusive
rights to the name "Coca-Cola" from Pemberton's son Charley right after Dr. Pemberton's
death. One of several stories was that Candler bought the title to the name from Charley's
mother for $300; approaching her at Dr. Pemberton's funeral. Eventually, Charley
Pemberton was found on June 23, 1894,
unconscious, with a stick of opium by his side.
Ten days later, Charley died at Atlanta's Grady
Hospital at the age of 40.

In Charles Howard Candler's 1950 book about

his father, he stated: "On August 30th {1888},
he {Asa Candler} became sole proprietor of
Cola-Cola, a fact which was stated on letterheads, invoice blanks and advertising copy.‖

With this action on August 30, 1888, Candler's sole control became technically all true.
Candler had negotiated with Margaret Dozier and her brother Woolfolk Walker a full
payment amounting to $1,000, which all agreed Candler could pay off with a series of
notes over a specified time span. By May 1, 1889, Candler was now claiming full
ownership of the Coca-Cola beverage, with a total investment outlay by Candler for the
drink enterprise over the years amounting to $2,300.

Coca-Cola was sold in bottles for the first time on March 12, 1894. The first outdoor wall
advertisement was painted in the same year, in Cartersville, Georgia.

The first bottling of Coca-Cola occurred in Vicksburg, Mississippi, at the Biedenharn

Candy Company in 1891. Its proprietor was Joseph A. Biedenharn. The original bottles
were Biedenharn bottles, very different from the much later hobble-skirt design now so
familiar. Asa Candler was tentative about bottling the drink, but two entrepreneurs from
Chattanooga, Tennessee, Benjamin F. Thomas and Joseph B. Whitehead, proposed the
idea and were so persuasive that Candler signed a contract giving them control of the
procedure for only one dollar. Candler never collected his dollar, but in 1899,
Chattanooga became the site of the first Coca-Cola bottling company. The loosely termed
contract proved to be problematic for the company for decades to come. Legal matters
were not helped by the decision of the bottlers to subcontract to other companies,
effectively becoming parent bottlers.
Coke concentrate, or Coke syrup, was and is sold separately at pharmacies in small
quantities, as an over-the-counter remedy for nausea or mildly upset stomach.

20th century landmarks

By the time of its 50th anniversary, the soft drink had

reached the status of a national icon in the USA. In
1935, it was certified kosher by Atlanta Rabbi Tobias
Geffen, after the company made minor changes in the
sourcing of some ingredients.

Original framed Coca-Cola artist's drawn graphic

presented by The Coca-Cola Company on July 12,
1944 to Charles Howard Candler on the occasion of
Coca-Cola's "1 Billionth Gallon of Coca-Cola
Syrup."

Claimed to be the first installation anywhere of the 1948 model "Boat Motor" styled
Coca-Cola soda dispenser, Fleeman's Pharmacy, Atlanta, Georgia. The "Boat Motor"
soda dispenser was introduced in the late 1930s and manufactured till the late 1950s.
Photograph circa 1948.

The longest running commercial Coca-Cola soda fountain anywhere was Atlanta's
Fleeman's Pharmacy, which first opened its doors in 1914.Jack Fleeman took over the
pharmacy from his father and ran it till 1995; closing it after 81 years.On July 12, 1944,
the one-billionth gallon of Coca-Cola syrup was manufactured by The Coca-Cola
Company.Cans of Coke first appeared in 1955.

On April 23, 1985, Coca-Cola, amid much publicity, attempted to change the formula of
the drink with "New Coke". Follow-up taste tests revealed most consumers preferred the
taste of New Coke to both Coke and Pepsi, but Coca-Cola management was unprepared
for the public's nostalgia for the old drink, leading to a backlash. The company gave in to
protests and returned to a variation of the old formula using high fructose corn syrup
instead of cane sugar as the main sweetner, under the name Coca-Cola Classic, on July
10, 1985.
21st century

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

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

In January 2009, Coca-Cola stopped printing the word "Classic" on the labels of 16-US-
fluid-ounce (470 ml) bottles sold in parts of the southeastern United States. The change is
part of a larger strategy to rejuvenate the product's image.The word "Classic" was
removed from all Coca-Cola products by 2011.

In November 2009, due to a dispute over wholesale prices of Coca-Cola products, Costco
stopped restocking its shelves with Coke and Diet Coke. However, some Costco locations
(such as the ones in Tucson, Arizona), sell imported Coca-Cola from Mexico.

Coca-Cola introduced the 7.5-ounce mini-can in 2009, and on September 22, 2011, the
company announced price reductions, asking retailers to sell eight-packs for $2.99. That
same day, Coca-Cola announced the 12.5-ounce bottle, to sell for 89 cents. A 16-ounce
bottle has sold well at 99 cents since being re-introduced, but the price was going up to
$1.19.

In 2012, Coca-Cola would resume business in Myanmar after 60 years of absence due to
U.S.-imposed investment sanctions against the country.Coca-Cola with its partners is to
invest USD 5 billion in its operations in India by 2020.
Brand Portfolio:

This is a list of variants of Coca-Cola introduced around the world. In addition to the
caffeine-free version of the original, additional fruit flavors have been included over the
years. Not included here are versions of Diet Coke and Coca-Cola Zero; variant versions of
those no-calorie colas can be found at their respective articles.

Name Launched Discontinued Notes Picture

Coca-Cola 1886 The original

version of
Coca-Cola.

Caffeine-Free 1983 The caffeine

Coca-Cola free version of
Coca-Cola.

Coca-Cola 1985 Was available

Cherry in Canada
starting in
1996. Called
"Cherry Coca-
Cola (Cherry
Coke)" in
North America
until 2006.

New 1985 2002 Was still

Coke"Coca- available in
Cola II" Yap and
American
Samoa[citation
needed]
Coca-Cola 2001 2005 Australia,
with Lemon American
Samoa,
Austria,
Belgium,
Brazil, China,
Denmark, etc

Coca-Cola 2002; 2007 2005; Austria, China,

Vanilla Australia,
Finland,
Germany,
Hong Kong,
New Zealand,
Malaysia, etc.It
was
reintroduced in
June 2007 by
popular
demand.

Coca-Cola 2005 Belgium,

with Lime Netherlands,
Singapore,
Canada, the
United
Kingdom, and
the United
States.

Coca-Cola June 2005 End of 2005 Was only

Raspberry available in
New Zealand.
Currently
available in the
United States
in Coca-Cola
Freestyle
fountain since
2009.
Coca-Cola 2006 Middle of 2007 Was replaced
Black Cherry by Vanilla
Vanilla Coke in June
2007

Coca-Cola 2006 Beginning of Only available

Blāk 2008 in the United
States, France,
Canada, Czech
Republic,
Bosnia and
Herzegovina,
Bulgaria and
Lithuania

Coca-Cola 2006 Only available

Citra in Bosnia and
Herzegovina,
New Zealand
and Japan.
 Coca-Cola 2007 Was available
Orange in the United
Kingdom and
Gibraltar for a
limited time. In
Germany,
Austria and
Switzerland it's
sold under the
label Mezzo
Mix. Currently
available in
Coca-Cola
Freestyle
fountain outlets
in the United
States since
2009.

LOGO DESIGN

The famous Coca-Cola logo was created by John Pemberton's

bookkeeper, Frank Mason Robinson, in 1885.[60] Robinson
came up with the name and chose the logo's distinctive cursive
script. The typeface used, known as Spencerian script, was
developed in the mid-19th century and was the dominant form
of formal handwriting in the United States during that period.

Robinson also played a significant role in early Coca-Cola

advertising. His promotional suggestions to Pemberton included
giving away thousands of free drink coupons and plastering the
city of Atlanta with publicity banners and streetcar signs. Earl
R. Dean's original 1915 concept drawing of the contour Coca-
Cola bottle.
SLOGAN:

American Slogan

1886 - Drink Coca-Cola.

1904 - Delicious and refreshing.
1905 - Coca-Cola revives and sustains.
1906 - The great national temperance beverage.
1908 - Good til the last drop
1917 - Three million a day.
1922 - Thirst knows no season.
1923 - Enjoy life.
1924 - Refresh yourself.
1925 - Six million a day.
1926 - It had to be good to get where it is.
1927 - Pure as Sunlight
1927 - Around the corner from anywhere.
1928 - Coca-Cola ... pure drink of natural flavors.
1929 - The pause that refreshes.
1932 - Ice-cold sunshine.
1937 - America's favorite moment.
1938 - The best friend thirst ever had.
1938 - Thirst asks nothing more.
1939 - Coca-Cola goes along.
1939 - Coca-Cola has the taste thirst goes for.
1939 - Whoever you are, whatever you do, wherever you may be, when you think of
refreshment, think of ice cold Coca-Cola.
1941 - Coca-Cola is Coke!
1942 - The only thing like Coca-Cola is Coca-Cola itself.
1944 - How about a Coke?
1945 - Coke means Coca-Cola.
1945 - Passport to refreshment.
1947 - Coke knows no season.
1948 - Where there's Coke there's hospitality.
1949 - Coca-Cola ... along the highway to anywhere.
1952 - What you want is a Coke.
1954 - For people on the go.
1956 - Coca-Cola ... makes good things taste better.
1957 - The sign of good taste.
1958 - The Cold, Crisp Taste of Coke
1959 - Be really refreshed.
1963 - Things go better with Coke.
1966 - Coke ... after Coke ... after Coke.
1969 - It's the real thing.
1971 - I'd like to buy the world a Coke. (basis for the song I'd Like to Teach the World to
Sing)
1974 - Look for the real things.
1976 - Coke adds life.
1979 - Have a Coke and a smile (see also Mean Joe Greene)
1982 - Coke is it!
1985 - America's Real Choice
 1986 - Red White & You (for Coca-Cola Classic)
1986 - Catch the Wave (for New Coke)
1989 - Can't Beat the Feeling. (also used in the UK)
1991 - Can't Beat the Real Thing. (for Coca-Cola Classic)
1993 - Always Coca-Cola.
2000 - Enjoy.
2001 - Life tastes good. (also used in the UK)
2003 - Real.
2005 - Make It Real.
2006 - The Coke Side of Life (used also in the UK)
2007 - Live on the Coke Side of Life (also used in the UK)
2008 - love it light (also used in the UK)
2009 - Open Happiness
2010 - Twist The Cap To Refreshment
2011 - Life Begins Here
2012 - Open Happiness

International Slogans
"Live on the Coke side of life" (2008)
"Real taste. Uplifting refreshment" (2009)
"Open Happiness" (2011)
2008 - Buhay Coke Buksan Mo!
2009 - Mag Smile Sa Buhay, Mag Coke Araw Araw!
2010 - Open Happiness Coke Philippines
2011 - Coke Mismo!
2012 - 100 Taon Na Saya Sa Coke!
"Всегда Coca-Cola" (1993–2009, "Always Coca-Cola")
"Coca-Cola идет в дом!" (2010, "Coca-Cola is going to the house!")
2003 - To pravé Vánoční osvěžení ("The real Christmas refreshment")
2007 - Podělte se o kouzlo Vánoc ("Pass On The Christmas Spirit")
2008 - Vánoce s chutí ("Christmas with taste")
200x - Pravá chuť. Zero cukr. ("Real taste. Zero sugar")
2012 - Pravá chuť. Nula cukru. Je to možné? ("Real taste. Zero sugar. Possible?")
1996 - Žij jinak! ("Live differently!")
1990 - Coca-Cola je to pravé! ("The Real Thing!")
1997 - Coca-Cola je k jídlu to pravé ("Coca-Cola Is Good With Food")
1997 - Vždy Coca-Cola ("Always Coca-Cola")
1998 - Žízeň uhasí, mysl osvěží ("Quenches thirst, refreshes mind")
ADVERTISING OF COCO COLA:

Coca-Cola's advertising has significantly affected American

culture, and it is frequently credited with inventing the
modern image of Santa Claus as an old man in a red-and-
white suit. Although the company did start using the red-
and-white Santa image in the 1930s, with its winter
advertising campaigns illustrated by Haddon Sundblom, the
motif was already common. Coca-Cola was not even the first
soft drink company to use the modern image of Santa Claus
in its advertising: White Rock Beverages used Santa in
advertisements for its ginger ale in 1923, after first using
him to sell mineral water in 1915. Before Santa Claus, Coca-Cola relied on images of
smartly dressed young women to sell its beverages. Coca-Cola's first such advertisement
appeared in 1895, featuring the young Bostonian actress Hilda Clark as its spokeswoman.

An 1890s advertisement showing model Hilda Clark in formal 19th century attire. The ad
is titled Drink Coca-Cola 5¢. (US)1941 saw the first use of the nickname "Coke" as an
official trademark for the product, with a series of advertisements informing consumers
that "Coke means Coca-Cola. In 1971 a song from a Coca-Cola commercial called "I'd
Like to Teach the World to Sing", produced by Billy Davis, became a hit single.

Coke's advertising is pervasive, as one of Woodruff's stated goals was to ensure that
everyone on Earth drank Coca-Cola as their preferred beverage. This is especially true in
southern areas of the United States, such as Atlanta, where Coke was born.

Some Coca-Cola television commercials between 1960 through 1986 were written and
produced by former Atlanta radio veteran Don Naylor (WGST 1936–1950, WAGA
1951–1959) during his career as a producer for the McCann Erickson advertising agency.
Many of these early television commercials for Coca-Cola featured movie stars, sports
heroes and popular singers.

The Coca-Cola Company purchased Columbia Pictures in 1982, and began inserting
Coke-product images into many of its films. After a few early successes during Coca-
Cola's ownership, Columbia began to under-
perform, and the studio was sold to Sony in
1989.Coca-Cola has gone through a number of
different advertising slogans in its long history,
including "The pause that refreshes," "I'd like to
buy the world a Coke," and "Coke is it" (see Coca-
Cola slogans).

Coca-Cola signboard in Lahore, Pakistan. In 2006,

Coca-Cola introduced My Coke Rewards, a customer loyalty campaign where consumers
earn points by entering codes from specially marked packages of Coca-Cola products into
a website. These points can be redeemed for various prizes or sweepstakes entries. In
Australia in 2011, Coca-Cola began the "share a Coke" campaign, where the Coca-Cola
logo was replaced on the bottles and replaced with first names. Coca-Cola used the 150
most popular names in Australia to print on the bottles. The campaign was paired with a
website page, Facebook page and an online "share a virtual Coke".

Holiday Campaigns:

The "Holidays are coming!" advertisement features

a train of red delivery trucks, emblazoned with the
Coca-Cola name and decorated with Christmas
lights, driving through a snowy landscape and
causing everything that they pass to light up and
people to watch as they pass through.

The advertisement fell into disuse in 2001, as the Coca-Cola company restructured its
advertising campaigns so that advertising around the world was produced locally in each
country, rather than centrally in the company's headquarters in Atlanta, Georgia. In 2007,
the company brought back the campaign after, according to the company, many
consumers telephoned its information center saying that they considered it to mark the
beginning of Christmas.[85] The advertisement was created by U.S. advertising agency
Doner, and has been part of the company's global advertising campaign for many years.
Keith Law, a producer and writer of commercials for Belfast CityBeat, was not
convinced by Coca-Cola's reintroduction of the advertisement in 2007, saying that "I
don't think there's anything Christmassy about HGVs
and the commercial is too generic."

In 2001, singer Melanie Thornton recorded the

campaign's advertising jingle as a single, Wonderful
Dream (Holidays are Coming), which entered the
pop-music charts in Germany at no. 9.[89][90] In
2005, Coca-Cola expanded the advertising campaign
to radio, employing several variations of the jingle.

In 2011, Coca-Cola launched a campaign for the Indian holiday Diwali. The campaign
included commercials, a song and an integration with Shah Rukh Khan‘s film Ra.One.

SPORTS SPONSORSHIP

Coca-Cola was the first commercial sponsor of the Olympic games, at the 1928 games in
Amsterdam, and has been an Olympics sponsor ever since.[95] This corporate
sponsorship included the 1996 Summer Olympics hosted in Atlanta, which allowed Coca-
Cola to spotlight its hometown. Most recently, Coca-Cola has released localized
commercials for the 2010 Winter Olympics in Vancouver; one Canadian commercial
referred to Canada's hockey heritage and was modified after Canada won the gold medal
game on February 28, 2010 by changing the ending line of the commercial to say "Now
they know whose game they're playing".

Since 1978, Coca-Cola has sponsored the FIFA World Cup, and other competitions
organised by FIFA. One FIFA tournament trophy, the FIFA World Youth Championship
from Tunisia in 1977 to Malaysia in 1997, was called "FIFA — Coca Cola Cup". In
addition, Coca-Cola sponsors the annual Coca-Cola 600 and Coke Zero 400 for the
NASCAR Sprint Cup Series at Charlotte Motor Speedway in Concord, North Carolina and
Daytona International Speedway in Daytona, Florida.
Coca-Cola is the official soft drink of many
collegiate football teams throughout the nation,
partly due to Coca-Cola providing those schools with
upgraded athletic facilities in exchange for Coca-
Cola's sponsorship. This is especially prevalent at the
high school level, which is more dependent on such
contracts due to tighter budgets.Coca-Cola was one of the official sponsors of the 1996
Cricket World Cup held on the Indian subcontinent. Coca Cola is also one of the
associate sponsor of Delhi Daredevils in Indian Premier League.

In England, Coca-Cola was the main sponsor of The Football League between 2004 and
2010, a name given to the three professional divisions below the Premier League in
football (soccer). It is also responsible for the renaming of these divisions — until the
advent of Coca-Cola sponsorship, they were referred to as Divisions One, Two and
Three. Since 2004, the divisions have been known as The Championship (equiv. of
Division 1), League One (equiv. of Div. 2) and League 2 (equiv. of Division 3). This
renaming has caused unrest amongst some fans, who see it as farcical that the third tier of
English Football is now called "League One." In 2005, Coca-Cola launched a competition
for the 72 clubs of the football league — it was called "Win a Player". This allowed fans
to place 1 vote per day for their beloved club, with 1 entry being chosen at random
earning £250,000 for the club; this was repeated in 2006. The "Win A Player"
competition was very controversial, as at the end of the 2 competitions, Leeds United
AFC had the most votes by more than double, yet they did not win any money to spend
on a new player for the club. In 2007, the competition changed to "Buy a Player". This
competition allowed fans to buy a bottle of Coca-Cola Zero or Coca-Cola and submit the
code on the wrapper on the Coca-Cola website {www.coca-colafootball.co.uk}. This
code could then earn anything from 50p to £100,000 for a club of their choice. This
competition was favored over the old "Win A Player" competition, as it allowed all clubs
to win some money.

Introduced March 1, 2010, in Canada, to celebrate the 2010 Winter Olympics, Coca Cola
will sell gold colored cans in packs of 12 355 mL each, in select stores.[98]In 2012, Coca-
Cola (Philippines) hosted/sponsored the Coca-Cola PBA Youngstars in the Philippines.

MASS MEDIA

Coca-Cola has been prominently featured in

countless films and television programs.
Since its creation, it remains as one of the
most important elements of the popular
culture. It was a major plot element in films
such as One, Two, Three, The Coca-Cola
Kid, and The Gods Must Be Crazy among many others. It provides a setting for comical
corporate shenanigans in the novel Syrup by Maxx Barry. And in music, in The Beatles'
song, "Come Together", the lyrics said, "He shoot Coca-Cola, he say...". The Beach Boys
also referenced Coca-Cola in their 1964 song "All Summer Long" (i.e. 'Member when
you spilled Coke all over your blouse?)[99]

Also, the best selling artist of all time and worldwide cultural icon,[100] Elvis Presley,
promoted Coca-Cola during his last tour of 1977.[101] The Coca-Cola Company used
Elvis' image to promote the product.[102] For example, the company used a song
performed by Presley, A Little Less Conversation, in a Japanese Coca-Cola commercial.

PROMOTERS:

Artists that promoted Coca-Cola include The Beatles, David Bowie,[104] George
Michael,[105] Elton John[106] and Whitney Houston,[107] who appeared in the Diet
Coca-Cola commercial, among many others.

Not all musical references to Coca-Cola went well. A line in "Lola" by The Kinks was
originally recorded as "You drink champagne and it tastes just like Coca-Cola." When the
British Broadcasting Corporation refused to play the song because of the commercial
reference, lead singer Ray Davies was forced to fly from New York to London and re-
record the lyric as "it tastes just like cherry cola" to get airplay for the song.

Political cartoonist Michel Kichka satirized a Coca-Cola billboard in his 1982 poster "And
I Love New York." On the billboard, the lettering and script above the Coca-Cola wave
read "Enjoy Cocaine.‖

COMPETITORS:

Pepsi, the flagship product of PepsiCo, The Coca-Cola Company's main rival in the soft
drink industry, is usually second to Coke in sales, and outsells Coca-Cola in some
markets. RC Cola, now owned by the Dr Pepper Snapple Group, the third largest soft
drink manufacturer, is also widely available.

Around the world, many local brands compete with Coke. In South and Central America
Kola Real, known as Big Cola in Mexico, is a growing competitor to Coca-Cola.[70] On
the French island of Corsica, Corsica Cola, made by brewers of the local Pietra beer, is a
growing competitor to Coca-Cola. In the French region of Brittany, Breizh Cola is
available. In Peru, Inca Kola outsells Coca-Cola, which led The Coca-Cola Company to
purchase the brand in 1999. In Sweden, Julmust outsells Coca-Cola during the Christmas
season.[71] In Scotland, the locally produced Irn-Bru was more popular than Coca-Cola
until 2005, when Coca-Cola and Diet Coke began to outpace its sales.[72] In India, Coca-
Cola ranked third behind the leader, Pepsi-Cola, and local drink Thums Up. The Coca-
Cola Company purchased Thums Up in 1993.[73] As of 2004, Coca-Cola held a 60.9%
market-share in India.[74] Tropicola, a domestic drink, is served in Cuba instead of Coca-
Cola, due to a United States embargo. French brand Mecca Cola and British brand Qibla
Cola are competitors to Coca-Cola in the Middle East. In Turkey, Cola Turka, in Iran and
the Middle East, Zam Zam Cola and Parsi Cola, in some parts of China, China Cola, in
Slovenia, Cockta and the inexpensive Mercator Cola, sold only in the country's biggest
supermarket chain, Mercator, are some of the brand's competitors. Classiko Cola, made
by Tiko Group, the largest manufacturing company in Madagascar, is a serious
competitor to Coca-Cola in many regions. Laranjada is the top-selling soft drink on
Madeira.
MEASURING BRAND EQUITY WITH COCA COLA PRODUCTS:

Brand equity is difficult to measure because much of it depends on consumers' perception

and opinions of a brand. When a product has high brand equity they are successful at
retaining their current customers by keeping them satisfied with the quality of products
and service. They are also successful at attracting new customers who have heard of the
brand through successful marketing or word of mouth.

Coca-Cola's brand equity is difficult to measure because they have extended their brand
to include numerous products. In addition to the numerous of versions of Coca-Cola
worldwide that compete against other beverage brands, Coca-Cola competes with itself.
Nationally there are numerous versions / brands that are a part of the Coca-Cola family.
Some of the brands include Coca-Cola Classic, Dasani Water, Full Throttle, Fanta, and
Soy Products. In addition to competing against itself the Coca-Cola Company has
saturated the market and consumers who may dislike one product may actually enjoy a
different Coca-Cola product. However, the consumer may be unaware that the beverage
is actually in the Coca-Cola family. As a result measuring brand equity may be difficult
as consumers may be loyal and repeat customers of a brand and not know its origin.

Despite the numerous brands and the difficulty in measuring brand equity it is evident
that Coca-Cola has high brand equity. They are a company who has been in business for
many years they have gained the business of consumers in the soda market as well as
numerous other beverage markets nationally and internationally. Their sales and growth
show that they are a successful company.

PEPSI COMPANY

PepsiCo Inc. is an American multinational corporation headquartered in Purchase, New

York, United States, with interests in the manufacturing, marketing and distribution of
grain-based snack foods, beverages, and other products. PepsiCo was formed in 1965
with the merger of the Pepsi-Cola Company and Frito-Lay, Inc. PepsiCo has since expanded
from its namesake product Pepsi to a broader range of food and beverage brands, the
largest of which include an acquisition of Tropicana in 1998 and a merger with Quaker
Oats in 2001—which added the Gatorade brand to its portfolio.
HISTORY:

The recipe for Pepsi, the soft drink, was first

developed in the 1880s by a New Bern, North Carolina
pharmacist and industrialist, Caleb Bradham, who
named it "Pepsi-Cola" in 1898. As the cola
developed in popularity, he created the Pepsi-Cola
Company in 1902 and registered a patent for his
recipe in 1903.[4] The Pepsi-Cola Company was first
incorporated in the state of Delaware in 1919. [5] The
company went bankrupt in 1931 and on June 8 of
that year the trademark and syrup recipe was bought
by Charles Guth who owned a syrup manufacturing business in Baltimore, Maryland. Guth
was also the president of Loft, Incorporated, a leading candy manufacturer and used the
company's labs and chemists to reformulate the syrup. He further contracted to stock the
soda in Loft's large chain of candy shops and restaurants, which were known for their
soda fountains, used Loft resources to promote Pepsi, and moved the soda company to a
location close by Loft's own facilities in New York City. In 1935 the shareholders of Loft
sued Guth for his 91% stake of PepsiCo in the landmark Guth v. Loft Inc.. Loft won the
suit and on May 29, 1941 formally absorbed Pepsi into Loft, which was then rebranded
as Pepsi Cola Company that same year. (Loft restaurants and candy stores were spun off
at this time.) In the early 1960s the company product line expanded with the creation of
Diet Pepsi and purchase of Mountain Dew.[6]

Separately, the Frito Company and H.W. Lay & Company – two American potato and
corn chip snack manufacturers – began working together in 1945 with a licensing
agreement allowing H.W. Lay to distribute Fritos in the Southeastern United States. The
companies merged to become Frito-Lay, Inc. in 1961.

In 1965, the Pepsi-Cola Company merged with Frito-Lay, Inc. to become PepsiCo, Inc.,
the company it is known as at present. At the time of its foundation, PepsiCo was
incorporated in the state of Delaware and headquartered in Manhattan, New York. The
company's headquarters were relocated to its still-current location of Purchase, New York
in 1970, and in 1986 PepsiCo was reincorporated in the state of North Carolina.

PepsiCo was the first company to stamp expiration dates, starting in March 1994.The
premium-based loyalty program of Pepsico called Pepsi Stuff was launched in the United
States on March 28, 1996.[1] Points were distributed on 4 billion packages[3] and billions
of cups and millions of consumers participated. According to some sources, the first
Pepsi Stuff campaign significantly outperformed The Coca-Cola Company's much-
anticipated Atlanta Olympics Summer with growth 3 times larger than Coca-Cola's and 2
points of share gained by Pepsi.[citation needed] Pepsi Stuff continued to run throughout
North America due to consumer and bottler demand, and was eventually expanded to
include Mountain Dew and other drinks, and into many international markets. In response
to the campaign, The Coca-Cola Company accelerated and extended its discount pricing
programs.

Brand Portfolio:

The primary identifier of a food and beverage industry main brand is annual sales over $1
billion. As of 2009, 19 PepsiCo brands met that mark: Pepsi-Cola, Mountain Dew, Lay's,
Gatorade, Tropicana, 7Up, Doritos, Lipton Teas, Quaker Foods, Cheetos, Mirinda, Ruffles,
Aquafina, Pepsi Max, Tostitos, Sierra Mist, Fritos, and Walker's.

PepsiCo's product mix as of 2012 (based on worldwide net revenue) consists of 63

percent foods, and 37 percent beverages. On a worldwide basis, the company's current
products lines include several hundred brands that in 2009 were estimated to have
generated approximately $108 billion in cumulative annual retail sales.

The Largest Pepsi Brands based on 2009 retail sales are briefly explained in the below
chart:
Largest PepsiCo Brands (based on 2009 retail sales)
Brand
Pepsi
Mountain Dew
Lay's potato chips
Gatorade
Diet Pepsi
Tropicana beverages
7UP (outside U.S.)
Doritos tortilla chips
Lipton teas
(PepsiCo/Unilever
partnership)
Quaker foods and
snacks
Cheetos
Mirinda
Ruffles potato chips
Aquafina bottled water
Pepsi Max
Tostitos tortilla chips
Sierra Mist
Fritos corn chips
Walkers potato crisps
Source: 2009 Annual Report[30] $0 $5b $10b $15b $20b

LOGO:

Pepsi logo (2005–2008). Pepsi Wild Cherry

continued to use this design through March 2010.
Pepsi ONE continued to use this design until mid-
2012. This logo is still in use in India and other
international markets. The original version had the
Pepsi wording on the top left of the Pepsi Globe. In
2007, the Pepsi wording was moved to the bottom
of the globe. From the 1930s through the late 1950s,
"Pepsi-Cola Hits The Spot" was the most commonly used slogan in the days of old
radio, classic motion pictures, and later television. Its jingle (conceived in the days when
Pepsi cost only five cents) was used in many different forms with different lyrics. With
the rise of radio, Pepsi utilized the services of a young, up-and-coming actress named
Polly Bergen to promote products, oftentimes lending her singing talents to the classic
"...Hits The Spot" jingle.

SLOGANS

American Slogans

1939–1950: "Twice as Much for a Nickel"

1950: "More Bounce to the Ounce"
1950–1957: "Any Weather is Pepsi Weather"
1957–1958: "Say Pepsi, Please"
1961–1964: "Now It's Pepsi for Those Who Think Young" (jingle sung by Joanie
Sommers)
1964–1967: "Come Alive, You're in the Pepsi Generation" (jingle sung by Joanie
Sommers)
1967–1969: "(Taste that beats the others cold) Pepsi Pours It On".
1969–1975: "You've Got a Lot to Live, and Pepsi's Got a Lot to Give"
1977–1980: "Join the Pepsi People (Feeling Free)"
1980–1981: "Catch That Pepsi Spirit" (David Lucas, composer)
1981–1983: "Pepsi's got your taste for life"
1983–1984: "Pepsi Now! Take the Challenge!"
1984–1988 and 1990-1991: "Pepsi. The Choice of a New Generation"
1989: "Pepsi. A Generation Ahead"
1991–1992: "Gotta Have It"/"Chill Out"
1992:"The Choice Is Yours"
1992–1993: "Be Young, Have Fun, Drink Pepsi"
1993–1994: "Right Now" (Van Halen song for the Crystal Pepsi advertisement)
1994–1995: "Double Dutch Bus" (Pepsi song sung by Brad Bentz)
1995: "Nothing Else is a Pepsi"
1995–1996: "Drink Pepsi. Get Stuff." (Pepsi Stuff campaign)
1996:"Change The Script"
1997–1998: "Generation Next" (with the Spice Girls)
1998–1999: "Its the cola" (100th anniversary commercial)
1999–2000: "For Those Who Think Young"/"The Joy of Pepsi-Cola"
(commercial with Britney Spears/commercial with Mary J. Blige)
2003: "Its the Cola"/"Dare for More" (Pepsi Commercial)
2006–2007: "Why You Doggin' Me"/"Taste the one that's forever young" (Mary
J. Blige)
2007–2008: "More Happy"/"Taste the once that's forever young" (Michael
Alexander)
2008: "Pepsi Stuff" Super Bowl Commercial (Justin Timberlake)
2008: "Pepsi is #1" Тv commercial (Luke Rosin)
2008–present: "Something For Everyone"
2009–present: "Refresh Everything"/"Every Generation Refreshes the World"
 2010–present: "Every Pepsi Refreshes The World"
2011–present "Summer Time is Pepsi Time"
2011–present "Born in the Carolinas"
2012: "Where there's Pepsi, there's music" – used for the 2012 Super Bowl
commercial featuring Melanie Amaro
2012 "Live For Now"
2012 "Change The Game"
2012 "The Best Drink Created Worldwide"

International Slogans

1990–1991: "Yehi hai right choice Baby, Aha" (Urdu, Hindi – meaning "This is
the right choice Baby <sound of approval>") (Pakistan), (India)
1996–1997: "Pepsi: There's nothing official about it" (During the Wills World
Cup (cricket) held in India/Pakistan/Sri Lanka)
1999–2006: "Yeh Dil Maange More!" (Hindi – meaning "This heart asks for
more") (India)
2002: "Change the World" (Japan)
2000–present: "Pepsi ye pyaas heh badi" ((Urdu), ((Hindi)) meaning "There is a
lot of thirst" (Pakistan)) ((India))
2009–present: "Yeh hai youngistaan meri jaan" (Hindi – meaning "This is our
young country my baby")
2009–present: "My Pepsi My Way"(Pakistan) (India)
2009–present: "Refresca tu Mundo" (Spanish – meaning "Refresh your world")
(Spanish Speaking countries in Latin America)
2009: "Joy It Forward" (Canada)
2010–present "Pepsi. Sarap Magbago." (Philippines – meaning "Its nice to
change")
2010–2011 "Badal Do Zamana" (Urdu – meaning "Change The World" by
CALL)(Pakistan)
2010–2011 "Love!" (Japan, for Pepsi Nex)
2010–present: "Pode ser bom, pode ser muito bom, pode ser Pepsi" (It can be
good, it can be very good, it can be Pepsi) – Brazil and Portugal
2011–present: "Change the game" (India, Bangladesh & Pakistan for the 2011
Cricket World Cup)
2011–present "Dunya Hai Dil Walon Ki" (Pakistan-meaning World is For Lovers
by Ali Zafar)
2011–present "Ici, c'est Pepsi" (Québec-meaning Here, it's pepsi)
2011–present "Go Next!" (Japan, for Pepsi Next)
Advertising:
Pepsi ads often focused on celebrities choosing Pepsi
over Coke, supporting Pepsi's positioning as "The
Choice of a New Generation." Pepsi generation was
created focusing on the user of the drink, never the
drink. Coke always focused on the drink. Pepsi
focused on the person using it. They showed people
riding dirt bikes, waterskiing, or kite flying, hang
gliding — doing different things. And at the end of it
there would always be a Pepsi as a reward. This all
happened when color television was first coming in.
They were the first company to do lifestyle
marketing. ―Coke and Pepsi cans flown aboard STS-51-F on display at the National Air
and Space Museum‖.

In the years after the initial Pepsi Stuff promotion, both Pepsi and Coca-Cola have
introduced other promotions in a similar vein to the original campaign. Some promotions
involved a variety of merchandise, while others involved specific products, such as Cash
or MP3s. Pepsi's 2002–2003 iTunes campaign fizzled when only 500 cap codes were
redeemed. Also in 2006, Pepsi introduced Pepsi Access in Canada to compete with
iCoke, although that campaign ended in 2007. In 2011, for New York Fashion Week,
Diet Pepsi introduced a "skinny" can that is taller and has been described as a "sassier"
version of the traditional can that Pepsi says was made in "celebration of beautiful,
confident women". The company's equating of "skinny" and "beautiful" and "confident"
is drawing criticism from brand critics, consumers who do not back the "skinny is better"
ethos, and the National Eating Disorders Association, which said that it takes offense to
the can and the company's "thoughtless and irresponsible" comments. PepsiCo Inc. is a
Fashion Week sponsor. This new can was made available to consumers nationwide in
March.

In late 2008, Pepsi overhauled its entire brand, simultaneously introducing a new logo
and a minimalist label design. The redesign was comparable to Coca-Cola's earlier
simplification of its can and bottle designs. Pepsi also teamed up with YouTube to
produce its first daily entertainment show called Poptub. This show deals with pop
culture, internet viral videos, and celebrity gossip.

In 2009, "Bring Home the Cup" changed to "Team Up and Bring Home the Cup". The
new installment of the campaign asks for team involvement and an advocate to submit
content on behalf of their team for the chance to have the Stanley Cup delivered to the
team's hometown by Mark Messier.

In April 2011, Pepsi announced that customers will be able to buy a complete stranger a
soda at a new "social" vending machine, and even record a video that the stranger would
see when they pick up the gift. In May 2011, the week before Memorial Day, Pepsi
launched a limited edition flavor called "Memorial Day Pepsi", with blueberry and cherry
flavors added to the cola. In March 2012, Pepsi introduced Pepsi Next, a cola with half the
calories of regular Pepsi.

MASS MEDIA:

Film actress Joan Crawford, after marrying then Pepsi-

Cola President Alfred N. Steele became a spokesperson
for Pepsi, appearing in commercials, television specials
and televised beauty pageants on behalf of the
company. Crawford also had images of the soft drink
placed prominently in several of her later films. When
Steele died in 1959 Crawford was appointed to the
Board of Directors of Pepsi-Cola, a position she held
until 1973, although she was not a board member of the
larger PepsiCo, created in 1965.Through the intervening
decades, there have been many different Pepsi theme songs sung on television by a
variety of artists, from Joanie Summers to the Jacksons to Britney Spears. (See Slogans)
BLIND TASTE TEST:

The first and the longest-running lifestyle campaign was and still is Pepsi. In 1975, Pepsi
began showing people doing blind taste tests called Pepsi Challenge in which they preferred
one product over the other, and then they began hiring more and more popular
spokespersons to promote their products. In their hope to win the Cola Wars a Concorde
was painted blue with PEPSI written across it in white lettering. In 1975, Pepsi
introduced the Pepsi Challenge marketing campaign where PepsiCo set up a blind tasting
between Pepsi-Cola and rival Coca-Cola. During these blind taste tests the majority of
participants picked Pepsi as the better tasting of the two soft drinks. PepsiCo took great
advantage of the campaign with television commercials reporting the results to the public.

PEPSI STUFF:

In the late 1990s, Pepsi launched its most successful long-term strategy of the Cola Wars,
Pepsi Stuff. Consumers were invited to "Drink Pepsi, Get Stuff" and collect Pepsi Points
on billions of packages and cups. They could redeem the points for free Pepsi lifestyle
merchandise. After researching and testing the program for over two years to ensure that
it resonated with consumers, Pepsi launched Pepsi Stuff, which was an instant success.
Tens of millions of consumers participated. Pepsi outperformed Coke during the summer
of the Atlanta Olympics - held in Coke's hometown - where Coke was a lead sponsor of
the Games. Due to its success, the program was expanded to include Mountain Dew, and
into Pepsi's international markets worldwide. The company continued to run the program
for many years, continually innovating with new features each year.
SPORTS SPONSORSHIP:

Pepsi has official sponsorship deals

with three of the four major North
American professional sports leagues:
the National Football League,
National Hockey League and Major
League Baseball. Pepsi also sponsors
Major League Soccer. It also has the
naming rights to the Pepsi Center, an indoor sports facility in Denver, Colorado. In 1997,
after his sponsorship with Coca-Cola ended, NASCAR driver Jeff Gordon signed a long
term contract with Pepsi, and he drives with the Pepsi logos on his car with various paint
schemes for about 2 races each year, usually a darker paint scheme during nighttime
races. Pepsi has remained as one of his sponsors ever since.Pepsi also has sponsorship
deals in international cricket teams. The Pakistan cricket team is one of the teams that the
brand sponsors. The team wears the Pepsi logo on the front of their test and ODI test
match clothing.

In July 2009, Pepsi started marketing itself as Pecsi in Argentina in response to its name
being mispronounced by 25% of the population and as a way to connect more with all of
the population.In October 2008, Pepsi announced that it would be redesigning its logo
and re-branding many of its products by early 2009. In 2009, Pepsi, Diet Pepsi and Pepsi
Max began using all lower-case fonts for name brands, and Diet Pepsi Max was re-
branded as Pepsi Max. The brand's blue and red globe trademark became a series of
"smiles", with the central white band arcing at different angles depending on the product
until 2010. Pepsi released this logo in U.S. in late 2008, and later it was released in 2009
in Canada (the first country outside of the United States for Pepsi's new logo), Brazil,
Bolivia, Guatemala, Nicaragua, Honduras, El Salvador, Colombia, Argentina, Puerto
Rico, Costa Rica, Panama, Chile, Dominican Republic, the Philippines and Australia. In
the rest of the world the new logo has been released in 2010. The old logo is still used in
several markets internationally, and has been phased out most recently in France and
Mexico. The UK started to use the new Pepsi logo on cans in an order different from the
US can. In mid-2010, all Pepsi variants, regular, diet, and Pepsi Max, have started using
only the medium-sized "smile" Pepsi Globe.Pepsi
and Pepsi Max cans and bottles in Australia now
carry the localized version of the new Pepsi Logo.
The word Pepsi and the logo are in the new style,
while the word "Max" is still in the previous style.
Pepsi Wild Cherry finally received the 2008 Pepsi
design in March 2010.

COMPETITION

The Coca-Cola Company has historically been considered PepsiCo's primary competitor in
the beverage market, and in December 2005, PepsiCo surpassed The Coca-Cola
Company in market value for the first time in 112 years since both companies began to
compete. In 2009, the Coca-Cola Company held a higher market share in carbonated soft
drink sales within the U.S. In the same year, PepsiCo maintained a higher share of the
U.S. refreshment beverage market, however, reflecting the differences in product lines
between the two companies.[28] As a result of mergers, acquisitions and partnerships
pursued by PepsiCo in the 1990s and 2000s, its business has shifted to include a broader
product base, including foods, snacks and beverages. The majority of PepsiCo's revenues
no longer come from the production and sale of carbonated soft drinks. [29] Beverages
accounted for less than 50 percent of its total revenue in 2009. In the same year, slightly
more than 60 percent of PepsiCo's beverage sales came from its primary non-carbonated
brands, namely Gatorade and Tropicana.

PepsiCo's Frito-Lay and Quaker Oats brands hold a significant share of the U.S. snack food
market, accounting for approximately 39 percent of U.S. snack food sales in 2009.One of
PepsiCo's primary competitors in the snack food market overall is Kraft Foods, which in
the same year held 11 percent of the U.S. snack market share.

In 2005, The Coca-Cola Company launched iCoke, a very similar program to Pepsi Stuff in
which consumers collect points printed on packages in Canada. On February 28, 2006 —
nearly ten years after the first Pepsi Stuff promotion began — The Coca-Cola Company
responded with the launch of its first U.S. loyalty program and biggest promotion ever, My
Coke Rewards, a premium program that is managed through four-billion unique codes that
consumers can enter online to redeem over $50 million worth of premiums.

BRAND EQUITY WITH PEPSI PRODUCTS:

Pepsi‘s primary sources of brand equity are derived from its unique name with an
American connotation to it. It‘s logo, a sphere with 3 different colors aids brand recall.
The brand endorsers over the years, starting from Shahrukh khan, Sachin Tendulkar to
Ranbir Kapoor, M.S Dhoni have been a major source of equity for the brand. The brand
has always looked for young faces in order to relate with its youth target audience . Pepsi
also drives it equity from its rival coke (which is the market leader with nearly 70%
market share) as its only global competitor primarily through creative advertising and
communication strategy.

Another source of Pepsi‘s Brand Equity is the huge consumer base of more than 200
million across the world. Pepsico‘s Indian Subsidiary is trying to follow on its footsteps
and is planning to tap the next 1 billion consumers at the bottom of the pyramid with its
exclusive offerings like Iron chusti and Gluco+ . Its innovative Campaigns are also a
predominant source of Pepsi‘s Brand Equity in India.

Several campaigns like ―Youngistaan ka Wow‖ targeted at Youth and celebrating their
audacious self belief, thus bringing the brand closer to its Customers, ‗The Game‘, a
series of five gaming-based television films developed specially for the ongoing IPL
season, ―Change the Game‖ and ―First Ball ka Kaptan‖ considering the cricket world cup
and T-20 world cup have been successful in leveraging the love for the game and
reinforce the association of the game with Pepsi. The CSR activities of the company also
generate a lot of Brand equity, It‘s the only soft drink manufacturer with a positive water
balance in India. Pepsi‘s wide Product Portfolio helps in increasing the depth and Breadth
of Brand Awareness.
COMPARING BRAND EQUITY: COKE VS. PEPSI

Let‘s start with defining what brand equity is:

Brand Equity — the value, both tangible and
intangible, that a brand adds to a
product/service; the added value a brand name
identity brings to a product or service beyond
the functional benefits provided.

Examples of products with excellent brand

equity include Google, Nike and of course
Starbucks. In fact, I myself have been known to
say something to the effect of, ―Hey, do you
want to go get a Starbucks?‖ Perhaps you‘ve
said, ―Just Google it.‖ In instances such as
Starbucks and Google, the brand name itself
has surpassed the brand and become a
commonplace term for an action or umbrella
product. [See "google" in the dictionary, folks.]

One ongoing battle that has been waging for

years is the one that exists between Pepsi and
Coke, or formally known as Pepsi Cola and
Coca-Cola. There are plenty of variables that
could influence any particular consumer,
including taste preference, packaging
preference and availability within a particular
market. From the polls I‘ve seen, usually (and I
use that term very loosely, people) Coke tends to score better than Pepsi in terms of
consumer preference. The ratings, however, are extremely close. For example: ―An
online Tribune poll revealed a virtual dead heat in the great Coke versus Pepsi debate. Of
the 346 votes cast, 50.87 percent took Coke and 49.13 percent went with Pepsi. Pepsi has
demand for a recount. All that said, we still don‘t know the answer: who has the most
brand equity? Coke or Pepsi? If there‘s one thing I‘ve learned over the years while
working at Zoom Creates, it‘s that doing a rebrand is a big deal. If the company we are
rebranding has any brand equity at all, it will be important to keep some elements of the
original brand in order to maintain familiarity. Taking a brand that is easily recognized
and people feel comfortable with and rebranding to the point of no recognition at all
would most certainly be a bad move. Look at the similarities among all rebrands over the
years for both Coke and Pepsi [see image at right].

By comparing the timeline of each brand, it is clear that Coke has held tighter to it‘s
original concept that Pepsi has, but whether or not that directly affects the sales is
unclear. What is clear, however, is that by looking at the chart, we are seeing two entirely
different branding strategies: Pepsi has been changed significantly over the years,
possibly to keep up with the times or to keep the look fresh and youthful. Coke, on the
other hand, has made itty bitty changes spanning decades and the mark today is strikingly
similar to what it was in 1887.I can only speak for myself when I say that I have more
respect for the Coca-cola brand. It strikes me as stable and unchanging through
recessions, wars, times of peace, president after president. To look at the evolution of the
Pepsi logo gives me the feeling that the mark is lost and even after more than 200 years is
still searching to ―find itself‖. While I admire their ongoing efforts, I feel like shouting,
―just PICK ONE already!‖.

Feel free to leave your opinionated comments below if you are compelled to do so. How
do you feel about the strategies of each brand? Do you think it has helped them over the
years or not? Which strategy do you feel is most effective?

- Credit East Valley Tribune, Phoenix AZ

3. CONCEPTUAL FRAME WORK:

BRAND:

A brand is a distinguishing symbol, mark, logo, name, word, sentence or a combination

of these items that companies use to distinguish their product from others in the market.

Investopedia explains „Brand‟, ―Once a brand has created positive sentiment among its
target audience, the firm is said to have built brand equity. Some examples of firms with
brand equity - possessing very recognizable brands of products - are Microsoft, Coca-
Cola, Ferrari, Sony, The Gap and Nokia. Legal protection given to a brand name is
called a trademark.‖

Meaning of brand:

Brand concepts can act as explanations or theories, that simplify reality, making a
category of knowledge increasingly informative, useful and efficient (cf. Murphy &
Medin 1985). When multiple extensions are made on a basis consistent with the family
brand concept, each extension emphasizes the same brand concept as the original
product, making the family brand concept increasingly coherent. Consequently, when
consumers are exposed to the family brand name or any of its products, the family brand
concept should be quickly and accurately recalled.Consistent extensions increase the
opportunity for cognitive elaboration (relative to a control group) as exposure to the
family's products strengthens the family concept and causes consumers to make the
association between the original brand concept and the new product. As the family and
product level brand concepts are repeatedly strengthened, beliefs concerning its nature
should be enhanced. This reduction in uncertainty can lead to positive affect (Nuttin &
Greenwald 1968; Obermiller 1985). Changes in evaluation are unlikely to be dramatic,
such as positive evaluations becoming negative; however, preexisting positive
evaluations may become more positive.Given the prior discussion, if the original family
brand concept is maintained over an increasing number of product categories, the brand
concept becomes increasingly accessible because extensions are made in accordance with
the consumer's prior knowledge/expectations of the brand and are continually fortifying
the brand's original family concept. Constant repetition of the brand concept through
multiple extensions should also strengthen existing beliefs about the nature of the brand
concept and increase liking for the brand via reduced uncertainty. In reality, few firms
would introduce brand extensions that blatantly contradict the original brand concept.
Firms that want to broaden their customer base to include new segments are likely to use
an independent brand name with an association that does not conflict with their current
brand concept. Therefore, this study is based on the premise that firms are more likely to
introduce brand extensions on bases independent of the family brand concept, as opposed
to extension bases directly opposed to the parent brand concept. An independent brand
extension does not necessarily imply that the extension basis is irrelevant in the product
class; rather, it means that the extension association is made on a dimension that has no
necessary implication for the parent brand association, or an association that is
subjectively uncorrelated with the parent brand concept. If Neutrogena's family brand
concept is "pure ingredients," independent extensions may emphasize other associations
such as "deep cleaning," "invigorating scent," or "pricey."Family Level. Independent
extensions are more likely to result in equity dilution at the family level than at the parent
brand level because as the association set size linked to a brand name increases, the
strength of a "link" or "retrieval path" is weakened (Anderson 1976; Raaijmakers &
Shiffrin 1981), and competing associations inhibit and interfere with retrieval (Anderson
1976; Meyers-Levy 1989; Sujan & Bettman 1989). Over time, the brand may lose its
definitive meaning or association. Additionally, the presence of new independent
associations may lead to decreases in the strength or accessibility of the consumer's
beliefs about the family brand concept.Decreases in brand concept accessibility and brand
beliefs are likely to impact evaluation of the parent brand, as evaluations are subject to
change as an individual learns more about a stimulus. If a consumer is unable to integrate
the independent associations into a coherent brand concept, uncertainty and aversive
tension may arise leading to decreased affect (i.e., Biehal & Chakravarti 1986; Johnson &
Levin 1985; Obermiller 1985; Meyer 1981; Simmons & Lynch 1991). Thus, it is
expected that brand evaluations will also be lower at the family level than at the parent
brand level.Parent Brand Level. Independent extensions are likely to lead to minimal
dilution effects of the original parent brand, because these associations are the most well-
learned over time, and because the category context in which the information was
originally encoded may trigger encoding specificities (Tulving & Thomson 1973) that
enhance recall when the category is cued. Therefore, it is hypothesized that independent
extensions differentially dilute brand equity at the family and original product level. This
occurs because independent associations in various product categories make it
increasingly difficult to cognitively process all the information into a coherent family
brand concept. Encoding specificities that occur at the time of learning, in conjunction
with the presence of a category cue, may account for the apparent lack of dilution, and
changes in brand beliefs and evaluation that are observed with respect to the original
parent product.Independent extensions have little effect on parent brand concept
accessibility, brand beliefs, or brand evaluation at the product level. However,
independent extensions reduce brand concept coherence, brand beliefs, and brand
evaluation at the family level.

The brand concept consists of the primary brand-specific association, either at the
attribute or product image level, including abstract meanings (e.g. "durability," "quality,"
"status") or concrete attributes (e.g. "pure ingredients," "dandruff control"). Although
brands often have multiple associations, this study assumes that a dominant association
can be identified that is able to explain or link the original product and all its extensions
as a group. Brand concepts serve to position the product within its category, often
referring to the distinguishing feature that differentiates the brand from its competitors.
According to this conceptualization, similarity is a search for a meaningful commonality
among what might otherwise be a dissimilar product grouping under a common brand
name.

Process of Building a Brand

The art of marketing is largely art of brand building. When something is not a brand, it
will probably be viewed as a commodity. Then price is the thing that counts. When price
is the only thing that counts then the low cost producer wins. But just having a brand is
not enough. What does the brand name mean? What associations, performances and
expectations does it evoke? What degree of preferences does it create?
1. Choosing a Brand Name

A brand name first must be chosen then its various meanings and promises must be built
up through brand identity work. In choosing a brand name, it must be consistent with the
value positioning of the brand. In naming a product or service the company may face
many possibilities: it could choose name of the person (Honda, Calvin Klein), location
(American airlines), quality (Safety stores, Healthy choice), or an artificial name (Exxon,
Kodak).

Among the desirable qualities of a brand name. Some are:

It should suggest something about the product benefits.

It should suggest product qualities such action or color
It should be easy to pronounce, recognize and remember; short names help a lot to
recognize the product to the customers.
It should be distinctive.
It should not carry poor meanings in other countries and languages etc.

Building Positive Associations

The best known brand names carry associations. For example, here is a list of words that
people say they associate with McDonalds:

Kids
Fun
Happy Meal
Ronald Mc. Donald
Quality
Toys

In trying to build a rich set of positive associations for a brand, the brand builder should
consider five dimensions that can communicate meaning:

Attributes: A strong brand should trigger in buyers mind certain attributes. Thus
 a Mercedes automobile attributes a picture of well-engineered car that is durable,
rugged and expensive. If a car brand does not trigger any attribute, then it would
be a weak brand.

Benefits: A strong brand should suggest benefits, not just features. Thus
Mercedes triggers the idea of well performing car that is enjoyable to drive and
prestigious to own.

Company Values: A strong brand should connote values that the company holds.
Thus Mercedes is proud of its engineers and engineering innovations and is very
organized and efficient in its operations. The fact that it is a German company
adds more pictures in the mind of the buyers about the character and the culture of
the brand.

Personality: A strong brand should exhibit some personality traits. Thus if

Mercedes were a person we would think of someone who is middle age, serious,
well-organized and somewhat authoritarian. If Mercedes were an animal we
might think of lion or its implied personality.

Users: A strong brand should suggest the type of people who buy the brand. Thus
we would expect Mercedes to draw buyers who are older, affluent and
professional.

In summary, brands when their very name connotes positive attributes, benefits, company
values, personality and users in the buyer‘s mind. The brand builder‘s job is to create a
brand identity that builds on those dimensions.

2. Choosing Brand Elements

Brand elements are those trademarks devices that serve to identify and differentiate the
brand. Most strong brands employ multiple brand elements. Nike has distinctive
―swoosh‖ logo, the empowering ―Just Do It‖ slogan and the mythological ―Nike‖ name
based on the winged goddess of victory.
Brand element can be chosen to build as much as brand equity as possible. The test of the
brand building ability of these elements is what consumers think or feel about the product
if they only knew about the brand element. A brand element provides positive
contribution to brand equity.

Brand Element Choice Criteria

There are six criteria in choosing brand element. The first three can be characterized by
brand building in terms of how brand equity can be build through judicious choice of
brand element. The latter three are more defensive and are concerned with how the brand
equity contained in the brand element can be leveraged and preserved in the face of
various opportunities and constraints.

Memorable: How easily is the brand element recalled? How easily recognized?
Is this true at both purchase and consumption? Short brand name like tide, Nike
can help.

Meaningful: To what extent is brand element credible and suggestive of the

corresponding category? Does it suggest something about a product ingredient or
a type of person who might use the brand?

Likeability: How aesthetically appealing does consumers find the brand element?
Is it inherently likeable visually, verbally, and in other ways? Concrete brand
names such as Wheel, Sunsilk etc evoke much imagery.

Transferable: Can a brand element be used to introduce new products in the

same or different categories? To what extent does the brand element add to brand
equity across geographic boundaries and market segments?

Adaptable: How adaptable and updatable is the brand element? Betty corker
received 8 makeovers through the years-although she is 75 yrs old, she doesn‘t
look a day over 35.

Protectable: How legally protectable is the brand element? How competitively

 protectable? Can it be easily copied? It is important that names that become
synonymous with product categories such as Kleenex, Xerox, Jell-O, etc retain
their trademarks rights and not become generic.

Brand elements can play a number of roles. If consumers do not examine much
information in making their product decisions, brand elements should be easily
recognized and recalled and inherently descriptive and persuasive. Memorable or
meaningful brand elements can reduce the burden on marketing communications to build
awareness and link brand associations. The different associations that arise from
likeability and appeal of the brand elements may also play a critical role in the equity of
brand.

Managing Multiple Brands:

Different companies have opted for different brand strategies for multiple products. These
strategies are:

Single brand identity - a separate brand for each product. For example, in laundry detergents
Procter & Gamble offers uniquely positioned brands such as Tide, Cheer, Bold, etc.

Umbrella - all products under the same brand. For example, Sony offers many different
product categories under its brand.

Multi-brand categories - Different brands for different product categories. Campbell Soup
Company uses Campbell's for soups, Pepperidge Farm for baked goods, and V8 for juices.

Family of names - Different brands having a common name stem. Nestle uses Nescafe,
Nesquik, and Nestea for beverages.Brand equity is an important factor in multi-product
branding strategies.

Brand Importance

If the businesses were split up, I would take the brands, trademarks and goodwill, and
you could have all the bricks and mortar – and I would fare better than you.‖

The optimism for the concept can be stated on the fact that when one would say as a
predictor of future financial performance, brand equity, if reported, would be valuable for
capital marketers and shareholders. Brand equity has the potential to become the set of
measures of business performance that matter most.

The motivation for brand equity comes from the observation that many marketing efforts
―realize‖ benefits; such as sales or profit and these are accounted for in the firm‘s profit
and loss figures. However, there is the possibility that management might choose
between taking realized benefits and ―storing‖ them future. One of the most common
times this argument is used is when discussing the role of advertising versus sales
promotion. You could spend lots of money on advertising, see no immediate effects, but
you could save your job by saying that you had ―built the brand‖. At least one
advertising agency offers to partner companies in this sort of activity.

So marketing strategies could be putting money into (or out of) the brand equity bank
account. But the question is as always how do we know? That is are we actually building
the brand with all our advertising (or other brand building 4 p‘s decisions e.g., limited /
premium distribution rights, high price, fancy packing, after sales service, extended
warranties).So, hopefully you have got the idea – theories about brand loyalty and equity
are used to represent aspects of brand strength.

This ―strength‖ can take a number of forms, e.g., consumers predominantly buying your
brand, which might be represented by a high share of category requirements, or high
proportion of sole-buyers.

Consumers saying good things about your brand, e.g., having a positive brand Attitude, it
might be the ability to charge a price premium. It might be the ability to not be
substituted when out of stock. Future strength might be in terms of some sort of long-
term competitive advantage or the ability to sustain brand extensions.

One of the things is that as with many concepts in marketing, is that there are many
different definitions and viewpoints on what exactly brand equity is and how to measure
it. So that is a problem. We need to be clear just what people mean when they talk about
brand equity or brand loyalty, or building brands
The 100 Hardest Working Brands

Perhaps recognizing that ‖the world‘s most valuable brands‖ theme is becoming over-
worked, CoreBrand released a brand league table this week with a twist: their league
table contains only corporate brands, and ranks them according to the percentage of
market capitalization represented by the corporate brand, not by actual value.

It is a potentially interesting approach. Leaving aside the methodological challenges

inherent in separating out the value of Coca-Cola the corporate brand from Coca-Cola the
product brand (the majority of the companies on the list are monobrands – meaning that
the product brand and the corporate brand are the same), it would be fascinating to see
some data on the extent to which branding at the corporate level is adding value above
and beyond what is being done at the product level. And whether the scale of this
contribution varies by industry.

Unfortunately CoreBrand list consists of nothing more than the ordinal ranking of 100
corporate brands on two bases:

By the percentage of market capitalization represented by the corporate brand

By the dollar value of the corporate brand

There is no data on either the actual dollar value of the corporate brands or on the actual
percentage of market capitalization that the value of the corporate brand represents.
Readers are left to guess whether corporate brand value is 3% or 30% of overall market
capitalization.

It is a missed opportunity to add meaningfully to the debate about brand valuation. This
is a shame since the CoreBrand list is based on two interesting premises:

First, that corporate brands matter

Second, that it is not so much the absolute value of brands that matters as the
proportion that they contribute to overall corporate value

I, for one, would have loved to see some data on the relative importance of corporate
brands. Or some data on how this varies by industry (it is self evident that product brands
matter more in certain industries than others – but is this true at the corporate brand
level?)

Instead, I am left to scan the list for interesting snippets, such as:

Is the Hershey corporate brand (ranked #1) really adding proportionately more
value than the Home Depot corporate brand (ranked #39)?

Is the Yahoo corporate brand (ranked #40) really working that much harder than
the Google corporate brand (ranked #88)?

And are those corporate communicators at P&G (ranked #54) really contributing
proportionately less than their counterparts at Colgate-Palmolive, Estee Lauder
and Avon (ranked at #6, #19 and #43 respectively)?

I suspect that most readers will fail to realize that this is a ranking of corporate brand
contribution to overall value, not overall brand value. Any list that includes Hershey,
Coca-Cola, Harley, Campbells and Kelloggs as its top 5 can easily be mistaken for just
another brand valuation league table.

Brand Equity:

Brand equity is the marketing effects and outcomes that accrue to a product with its brand
name compared with those that would accrue if the same product did not have the brand
name. Fact of the well-known brand name is that, the company can sometimes charge
premium prices from the consumer. And, at the root of these marketing effects is
consumers' knowledge. In other words, consumers' knowledge about a brand makes
manufacturers and advertisers respond differently or adopt appropriately adept measures
for the marketing of the brand. The study of brand equity is increasingly popular as some
marketing researchers have concluded that brands are one of the most valuable assets a
company has.[7] Brand equity is one of the factors which can increase the financial value
of a brand to the brand owner, although not the only one. [8] Elements that can be included
in the valuation of brand equity include (but not limited to): changing market share, profit
margins, consumer recognition of logos and other visual elements, brand language
associations made by consumers, consumers' perceptions of quality and other relevant
brand values.

"Brand equity is strategically crucial, but famously difficult to quantify. Many experts
have developed tools to analyze this asset, but there is no universally accepted way to
measure it." In a survey of nearly 200 senior marketing managers, only 26 percent
responded that they found the "brand equity" metric very useful.

What is Brand Equity?

Brand equity is an intangible asset that depends on associations made by the consumer.
There are at least three perspectives from which to view brand equity:

Financial - One way to measure brand equity is to determine the price premium
that a brand commands over a generic product. For example, if consumers are
willing to pay $100 more for a branded television over the same unbranded
television, this premium provides important information about the value of the
brand. However, expenses such as promotional costs must be taken into account
when using this method to measure brand equity.
Brand extensions - A successful brand can be used as a platform to launch
related products. The benefits of brand extensions are the leveraging of existing
brand awareness thus reducing advertising expenditures, and a lower risk from the
perspective of the consumer. Furthermore, appropriate brand extensions can
enhance the core brand. However, the value of brand extensions is more difficult
to quantify than are direct financial measures of brand equity.
Consumer-based - A strong brand increases the consumer's attitude strength
toward the product associated with the brand. Attitude strength is built by
experience with a product. This importance of actual experience by the customer
implies that trial samples are more effective than advertising in the early stages of
building a strong brand. The consumer's awareness and associations lead to
perceived quality, inferred attributes, and eventually, brand loyalty.
Strong brand equity provides the following benefits:

Facilitates a more predictable income stream.

Increases cash flow by increasing market share, reducing promotional costs, and
allowing premium pricing.
Brand equity is an asset that can be sold or leased.

However, brand equity is not always positive in value. Some brands acquire a bad
reputation that results in negative brand equity. Negative brand equity can be measured
by surveys in which consumers indicate that a discount is needed to purchase the brand
over a generic product.

Purpose:

The purpose of brand equity metrics is "to measure the value of a brand." "A brand
encompasses the name, logo, image, and perceptions that identify a product, service, or
provider in the minds of customers. It takes shape in advertising, packaging, and other
marketing communications, and becomes a focus of the relationship with consumers. In
time, a brand comes to embody a promise about the goods it identifies—a promise about
quality, performance, or other dimensions of value, which can influence consumers'
choices among competing products. When consumers trust a brand and find it relevant,
they may select the offerings associated with that brand over those of competitors, even at
a premium price. When a brand's promise extends beyond a particular product, its owner
may leverage it to enter new markets. For all these reasons, a brand can hold tremendous
value, which is known as brand equity."

Construction:

There are many ways to measure a brand. Some measurements approaches are at the firm
level, some at the product level, and still others are at the consumer level.

Firm Level: Firm level approaches measure the brand as a financial asset. In short, a
calculation is made regarding how much the brand is worth as an intangible asset. For
example, if you were to take the value of the firm, as derived by its market
capitalization—and then subtract tangible assets and "measurable" intangible assets—the
residual would be the brand equity.One high-profile firm level approach is by the
consulting firm Interbrand. To do its calculation, Interbrand estimates brand value on the
basis of projected profits discounted to a present value. The discount rate is a subjective
rate determined by Interbrand and Wall Street equity specialists and reflects the risk
profile, market leadership, stability and global reach of the brand.

Product Level: The classic product level brand measurement example is to compare the
price of a no-name or private label product to an "equivalent" branded product. The
difference in price, assuming all things equal, is due to the brand. More recently a
revenue premium approach has been advocated.

Consumer Level: This approach seeks to map the mind of the consumer to find out what
associations with the brand the consumer has. This approach seeks to measure the
awareness (recall and recognition) and brand image (the overall associations that the
brand has). Free association tests and projective techniques are commonly used to
uncover the tangible and intangible attributes, attitudes, and intentions about a brand. [5]
Brands with high levels of awareness and strong, favorable and unique associations are
high equity brands. All of these calculations are, at best, approximations. A more
complete understanding of the brand can occur if multiple measures are used.

Methodologies

Brand Equity Ten (Aaker)

"David Aaker, a marketing professor and brand consultant, highlights ten attributes of a
brand that can be used to assess its strength. These include Differentiation, Satisfaction or
Loyalty, Perceived Quality, Leadership or Popularity, Perceived Value, Brand
Personality, Organizational Associations, Brand Awareness, Market Share, and Market
Price and Distribution Coverage. Aaker doesn't weight the attributes or combine them in
an overall score, as he believes any weighting would be arbitrary and would vary among
brands and categories. Rather he recommends tracking each attribute separately." [9]
Brand Equity Index (Moran)

"Marketing executive Bill Moran has derived an index of brand equity as the product of
three factors:"

"Effective Market Share is a weighted average. It represents the sum of a brand's

market shares in all segments in which it competes, weighted by each segment's
proportion of that brand's total sales."
"Relative Price is a ratio. It represents the price of goods sold under a given
brand, divided by the average price of comparable goods in the market."
"Durability is a measure of customer retention or loyalty. It represents the
percentage of a brand's customers who will continue to buy goods under that
brand in the following year."

Brand Asset Valuator (Young & Rubicam)

"Young & Rubicam, a marketing communications agency, has developed the Brand Asset
Valuator, a tool to diagnose the power and value of a brand. In using it, the agency
surveys consumers' perspectives along four dimensions:"

"Differentiation: The defining characteristics of the brand and its distinctiveness

relative to competitors."
"Relevance: The appropriateness and connection of the brand to a given
consumer."
"Esteem: Consumers' respect for and attraction to the brand."
"Knowledge: Consumers' awareness of the brand and understanding of what it
represents."

Brand Valuation Model (Interbrand and Brand Finance)

"Interbrand, a brand strategy agency, draws upon financial results and projections
in its own model for brand valuation. It reviews a company's financial statements,
analyzes its market dynamics and the role of brand in income generation, and
separates those earnings attributable to tangible assets (capital, product,
 packaging, and so on) from the residual that can be ascribed to a brand. It then
forecasts future earnings and discounts these on the basis of brand strength and
risk. The agency estimates brand value on this basis and tabulates a yearly list of
the 100 most valuable global brands."
The Royalty Relief approach of Brand Finance, an independent brand valuation
consultancy, is based on the assumption that if a company did not own the
trademarks that it exploits, it would need to license them from a third party brand
owner instead. Ownership therefore ‗relieves‘ the company from paying a license
fee (the royalty) for the use of the third party trademarks. The royalty relief
method involves estimating likely future sales, applying an appropriate royalty
rate to them and then discounting estimated future, post-tax royalties, to arrive at
a Net Present Value (NPV). This is held to represent the brand value. [12] The
independent consultancy publishes yearly lists by industry sector and geographic
region as well as a top 500 global list.

Conjoint Analysis

Marketers use conjoint analysis to measure consumers' preference for various attributes of
a product, service, or provider, such as features, design, price, or location. By including
brand and price as two of the attributes under consideration, they can gain insight into
consumers' valuation of a brand—that is, their willingness to pay a premium for it.

Building and Managing Brand Equity

In his 1989 paper, Managing Brand Equity, Peter H. Farquhar outlined the following
three stages that are required in order to build a strong brand:

1. Introduction - introduce a quality product with the strategy of using the brand as
a platform from which to launch future products. A positive evaluation by the
consumer is important.
2. Elaboration - make the brand easy to remember and develop repeat usage. There
should be accessible brand attitude, that is, the consumer should easily remember
his or her positive evaluation of the brand.
 3. Fortification - the brand should carry a consistent image over time to reinforce its
place in the consumer's mind and develop a special relationship with the
consumer. Brand extensions can further fortify the brand, but only with related
products having a perceived fit in the mind of the consumer.

Alternative Means to Brand Equity

Building brand equity requires a significant effort, and some companies use alternative
means of achieving the benefits of a strong brand. For example, brand equity can be
borrowed by extending the brand name to a line of products in the same product category
or even to other categories. In some cases, especially when there is a perceptual
connection between the products, such extensions are successful. In other cases, the
extensions are unsuccessful and can dilute the original brand equity.

Brand equity also can be "bought" by licensing the use of a strong brand for a new
product. As in line extensions by the same company, the success of brand licensing is not
guaranteed and must be analyzed carefully for appropriateness.

Brand equity is an important factor in multi-product branding strategies.

Protecting Brand Equity

The marketing mix should focus on building and protecting brand equity. For example, if
the brand is positioned as a premium product, the product quality should be consistent
with what consumers expect of the brand, low sale prices should not be used compete, the
distribution channels should be consistent with what is expected of a premium brand, and
the promotional campaign should build consistent associations.

Finally, potentially dilutive extensions that are inconsistent with the consumer's
perception of the brand should be avoided. Extensions also should be avoided if the core
brand is not yet sufficiently strong.
Measurement Approaches:

There are many ways to measure a brand. Some measurements approaches are at the firm
level, some at the product level, and still others are at the consumer level.

Firm Level: Firm level approaches measure the brand as a financial asset. In short, a
calculation is made regarding how much the brand is worth as an intangible asset. For
example, if you were to take the value of the firm, as derived by its market capitalization
- and then subtract tangible assets and "measurable" intangible assets- the residual would
be the brand equity.[5] One high profile firm level approach is by the consulting firm
Interbrand. To do its calculation, Interbrand estimates brand value on the basis of
projected profits discounted to a present value. The discount rate is a subjective rate
determined by Interbrand and Wall Street equity specialists and reflects the risk profile,
market leadership, stability and global reach of the brand.

Product Level: The classic product level brand measurement example is to compare the
price of a no-name or private label product to an "equivalent" branded product. The
difference in price, assuming all things equal, is due to the brand. [10] More recently a
revenue premium approach has been advocated. [4]

Consumer Level: This approach seeks to map the mind of the consumer to find out what
associations with the brand the consumer has. This approach seeks to measure the
awareness (recall and recognition) and brand image (the overall associations that the
brand has). Free association tests and projective techniques are commonly used to
uncover the tangible and intangible attributes, attitudes, and intentions about a brand. [7]
Brands with high levels of awareness and strong, favorable and unique associations are
high equity brands.

All of these calculations are, at best, approximations. A more complete understanding of

the brand can occur if multiple measures are used.
Measuring Brand Equity:

Brand Equity is measured by studying the following components for your brand and each
of its competitors, with responses reported separately for different user segments. The
Blake Project has identified the following five attributes that drive customers to insist upon
specific brands: awareness, relevant differentiation, value, accessibility and emotional
connection. These brand insistence drivers work together to move customers from being
aware of your brand and preferring your brand to purchasing your brand and being loyal
to your brand. Our chart demonstrates how this works...

• Awareness
• Convenience/accessibility
• Perceived value
• Rank in consideration set
• Preference
• Usage
• Relevance
• Differentiation
• Vitality
• Emotional connection
• Loyalty
• Multiple personality
attributes
• Other brand associations.

This is especially true of a brand and its equity. A robust brand equity measurement
system will accomplish the following objectives:

• Measure the brand‘s equity across a variety of dimensions at different points in time
over time
•Provide diagnostic information on the reasons for the changes in brand equity
•Gauge and evaluate the brand‘s progress against goals
•Provide direction on how to improve brand equity
•Provide insight into the brand‘s positioning vis-à-vis its major competitors including its
strengths, weaknesses, opportunities and threats
•Provide direction on how to reposition the brand for maximum effect

Brand Equity and Its Components

I heard some discussions about brand equity and brand value studies? Is there a
difference between the two?Unfortunately, the terms may be used interchangeable but
often they refer to two different types of studies used for evaluating brand worth. One
type of study, which I will call brand value, attempts to quantify the total worth of a
brand in dollars. These studies are large undertakings as one is trying to determine the
worth of an intangible asset. A simpler type of study is a brand equity study which
quantifies the relative worth of your brand as compared to your competitors. Oftentimes
your brand equity score, along with your competitors‘ scores, would be expressed using a
100 point scale, e.g. your brand equity score is 75, while the highest and lowest brand
equity scores of competitors are 87 and 50 respectively. These scores, and their
components, not only allow relative comparisons but also can reveal the strengths and
weaknesses associated with your brand. Finally, brand equity studies provide guidelines
as to how to increase your scores.Brand studies sometimes refer to the 5 A‘s, what are
these?
These are the components/levels of determining a brand equity score. In ascending order,
they are: 1) Awareness, 2) Association, 3) Attitude, 4) Attachment and 5) Activity.
Briefly, Awareness is ―Are you familiar with the brand?‖, Association is ―Do any mental
images that come to mind when thinking of the brand? e.g. Golden Arches‖, Attitude is
―What are your impressions concerning the brand‘s quality?, value?, etc., Attachment is
―Do you like the brand?‖ and finally Activity is ―Did you purchase the product or
service?‖.
Brand Equity as Brand Value.

Brand value involves actually placing a dollar or rupee value on a brand name. The
reasons for doing this are usually to set a price when the brand is sold and also to include
the brand as an intangible asset on a balance sheet (a practice which is not used in some
countries). While there are many methods for making this measurement, some of which
will be described shortly, it is important to note that there is a significant difference
between an ―objective‖ valuation created for balance sheet purposes, and the actual price
that a brand may get when sold?

A brand is likely to have a much greater value to one purchaser than another depending
on the synergy that exists. For acquisitions, the value of a brand to a certain purchaser is
often estimated through scenario planning. This involves determining what future cash
flows the company could achieve if it owned and took advantage of the brand.

What this means is that there is no such thing as an absolute value for a brand, and brand
value needs to be considered as only one component of the overall equity of a brand.

Brand Equity as Brand Loyalty

Loyalty is a core dimension of brand equity and is a way to gauge the strength of a brand.
It represents a barrier to entry, a basis for a price premium, and time to respond to
competitive innovations. The variety of measures used for brand loyalty usually is a
combination of one or more of the following:

Price/demand measures–focus on a brand‘s ability to command a higher price or

make consumers less sensitive to price increases than price increases for competing
brands.

Behavioral measures–focus on consumers‘ behavior.

Attitudinal measures–focus on general evaluative measures such as ‗liking‘ or

‗disliking.‘
 Awareness measures–focus on identifying a brand as being associated with a
product category.

Brand Loyalty and Equity refer to the notion that some brands are ―stronger‖ or
better than others.

Brand Equity as Brand Description

Brand description, the final component of brand equity, concerns the actual attributes of
the brand. These attributes or associations are major creators of brand loyalty. A wide
variety of techniques exist for matching consumer associations with perceptions of a
brand. These techniques can be both qualitative and quantitative. They work by getting
the respondent to link each brand with pictures or words. These attributes then can be
measured with multi-dimensional scaling to position the attributes relative to one another.

Brand Equity is the value and strength of the Brand that decides its worth. It can also be
defined as the differential impact of brand knowledge on consumers response to the
Brand Marketing. Brand Equity exists as a function of consumer choice in the market
place. The concept of Brand Equity comes into existence when consumer makes a choice
of a product or a service. It occurs when the consumer is familiar with the brand and
holds some favourable positive strong and distinctive brand associations in the memory.

Brand Equity Management System

Brand equity is defined and a comprehensive framework is described that incorporates

recent theoretical advances and managerial practices in understanding and influencing
consumer behavior.1 This framework identifies sources and outcomes of brand equity
and permits tactical guidelines as to how to build, measure, and manage brand equity, as
will be developed further in other sections of the paper. Customer-based brand equity.
Understanding the needs and wants of consumers and customers is at the heart of
marketing. A brand equity framework should therefore recognize the importance of the
customer in the creation and management of brand equity. Accordingly, customer-based
brand equity is defined as the differential effect that brand knowledge has on consumer
response to the marketing of that brand. A brand is said to have positive customer-based
brand equity when customers react more favorably to a product and the way it is
marketed when the brand is identified as compared to when it is not (e.g., when it is
attributed to a fictitiously named or unnamed version of the product). Accordingly, the
key to branding is that consumers perceive differences among different products in a
category. As noted above, brand differences often are related to attributes or benefits of
the product itself. In other cases, however, brand differences may be related to more
intangible image considerations.

There are three key ingredients to this definition — ―differential effect,‖ ―brand
knowledge,‖ and ―consumer response to marketing.‖ First, brand equity arises from
differences in consumer response. If no differences occur, then the brand name product
can essentially be classified as a commodity or generic version of the product. Second,
these differences in response are a result of consumer‘s knowledge about the brand. Thus,
although strongly influenced by the marketing activity of the firm, brand equity
ultimately depends on what resides in the minds of consumers. In other words,
―customers own brands and your brand is what customers will permit you to have.‖
Third, the differential response by consumers that makes up the brand equity is reflected
in perceptions, preferences, and behavior related to all aspects of the marketing of a brand
(e.g., product evaluations or choice, recall of copy points from an ad, actions in response
to a sales promotion, or evaluations of a proposed brand extension).

Sources of brand equity

What causes customer-based brand equity to exist? Customer-based brand equity

occurs when the consumer has a high level of awareness and familiarity with the
brand and holds some strong, favorable, and unique brand associations in memory.
The latter consideration is critical. For branding strategies to be successful and brand
equity to be created, consumers must be convinced that there are meaningful
differences among brands in the product or service category. The key to branding is
that consumers must not think that all brands in the category are the same.
Thus, establishing brand awareness and a positive brand image in consumer memory
— in terms of strong, favorable, and unique brand associations — produces the
knowledge structures that can affect consumer response and produce different types
of customer-based brand equity. In some cases, brand awareness alone is sufficient to
result in more favorable consumer response, e.g., in low involvement decision
settings where consumers are willing to base their choices merely on familiar brands.
In other cases, the strength, favorability, and uniqueness of the brand associations
play a critical role in determining the differential.

Benefits of brand equity

Customer-based brand equity occurs when consumer response to marketing activity

differs when consumers know the brand from when they do not. The actual nature of
how that response differs will depend on the level of brand awareness and how
favorably and uniquely consumers evaluate brand associations, as well as the
particular marketing activity under consideration. A number of benefits can result
from a strong brand, both in terms of greater revenue and lower costs for the firm,
including the following:

1. Greater customer loyalty,

2. Less vulnerability to competitive marketing actions,
3. Less vulnerability to marketing crises,
4. Larger price margins,
5. More inelastic consumer response to price increases,
6. More elastic consumer response to price decreases,
7. Greater trade cooperation and support,
8. Increased marketing communication effectiveness,
9. Possible licensing opportunities, and
10. Additional brand extension opportunities.
Measuring Outcomes of Brand Equity

There are two types of method employed to measure brand equity at source. These
two methods are qualitative research methods and quantitative research methods.
Qualitative research methods are ideal for measuring brand association where in
consumer perceptions towards brand are captured. Quantitative research methods are
perfect to understand brand awareness within consumer.Both above mention
methods are only able to capture and measure one dimension of brand equity at a
time. But brand equity is multi-dimensional and therefore it is important to measure
each as it will help in taking tactical as well as strategically important decision.

Comparative methods and holistic methods are designed to directly analyze

brand equity. Comparative methods tend to analyze effects of consumer perception
towards brand in respect to marketing programs, in terms of change in brand
awareness. Holistic methods are designed to analyze the total effect of brand equity.
These methods will provide necessary tools to measure outcome
of brand equity. Consumer bases brand equity will lead to loyal customer base, point
of differentiation against competitors get better margins, more acceptances of
marketing communication, strong standing in distribution channel and also support
any form of brand extension.

Comparative methods are research methods which measure brand equity associated
with brand association and high level of brand awareness. Comparative methods are
again of different types depending on usage of marketing. Brand based comparative
methods looks to measure consumer response against same marketing program for
different brands. Marketing based comparative method looks to measure consumer
response for same brand under different marketing program. Conjoint comparative
method looks to combine both brand based comparative method and marketing based
comparative method. Each method has its application and drawbacks.
Brand Equity Archives

Archetypes of Brand Relationships

Ancient Greek had four distinct words for love: agápe, éros, philía, and storgē. They
may provide an interesting framework for thinking about the variety of brand
relationship types.

Éros referred to passionate love – an obsession with the person or object. It could be
the analogy for brands that we ―just have to have‖ and ―cannot live without.‖

Agápe referred to a deep sense of affection. It could be the analogy for brands that
we hold in high esteem and consider to ―stand for something admirable.‖Philia
referred to friendship and loyalty to friends, family, and community. It could be the
analogy for brands that make us feel part of a community, to feel a sense of belonging
based on shared values. Storage was a general term for affection, typically for one‘s
own family. It could be the analogy for brands that we feel comfortable with based
on long experience and familiarity – we are glad they are around, but they have lost
the power to surprise and excite us.

It seems to me that many of the brand attributes that typically appear in brand image
research could be mapped onto these four concepts – yielding insight into the basis of
brand relationships and the nature of the expectations that go with each type of
relationship

Why is Brand Equity Important?

Successful business are always managing two core tensions:

Between value creation for clients and value appropriation for the company
(the outside/inside tension)
Between short-term profitability and long-term profitability (the now/later
tension)
The concept of brand equity is important to the effective management of both
tensions. Brand equity serves to remind managers that the extent of value that a
company can appropriate is entirely determined by the amount of value it creates for
customers (a fancy way of saying that ―customers have the money. companies have
no other source of income than the money that they persuade customers to part
with‖). Absent a reminder that brand equity is a wasting asset, companies will tend
to focus too heavily on cost reduction and efficiency, and insufficiently on innovation
(the principal way to increase the level of brand equity).

The concept of brand equity is also vital to the trade off between profits today and
profits tomorrow. The true measure of performance is the sum of current profitability
plus/minus changes in brand equity (the NPV of future profits that the brand is
expected to earn). Absent a good measure of brand equity, companies will always be
tempted to ―borrow from the future‖ to boost short-term profits (otherwise known as
―milking the brand‖).

The current financial accounting system biases companies in favour of short-term

profits and cost reduction. We need a robust concept of brand equity to ensure that
sufficient attention is paid to nurturing the customer franchise that is the underlying
source of the company‘s value.

Measures of Success

There is a constant tension in business between the desire to maximize profits in the
short run, and the knowledge that creating sustainable relationships with customers
and suppliers requires that some money be left on the table so there is an incentive to
do business together again.

The observation that the winning long term strategy is about ensuring value exchange
over time has been proven by numerous game theory contests. To the surprise of
most, the winning strategies were not the ones that were based on trying to establish
the optimal moment to ―defect‖ – they were the ones (most famously, ―tit for tat‖)
that created the basis for stable, predictable relationships. The generalizable lesson
appears to be ―better to be a player in multiple low scoring games, than the person
who scoops the pot once and then cannot find anyone to play with.‖

So why do we find it so hard to carry over this principle into business? My guess is
that the reason is a mixture of testosterone, risk aversion and financial accounting.
Most business people choose to err on the side of excessive value extraction because
we like to exert power when we have it; we are uncertain about the future and
therefore would rather go for the ―bird in the hand‖; and the financial accounting
system reinforces this bias towards realized profits over potential future profits.

No wonder our performance measurement systems tend to reward behaviour that we

know to be unsustainable. The importance of the concept of brand equity is that it
enables businesses to determine whether today‘s profits are true profits – or have
been achieved by borrowing from the future (by extracting value now because we
can, even though it reduces that customer‘s willingness to do business with us in the
future).

Positive brand equity vs. negative brand equity:

Brand equity is the positive effect of the brand on the difference between the prices
that the consumer accepts to pay when the brand known compared to the value of the
benefit received.

There are two schools of thought regarding the existence of negative brand equity.
One perspective states brand equity cannot be negative, hypothesizing only positive
brand equity is created by marketing activities such as advertising, PR, and
promotion. A second perspective is that negative equity can exist, due to catastrophic
events to the brand, such as a wide product recall or continued negative press
attention (Blackwater or Halliburton, for example).

Colloquially, the term "negative brand equity" may be used to describe a product or
service where a brand has a negligible effect on a product level when compared to a
no-name or private label product.
Family branding vs. individual branding strategies:

The greater a company's brand equity, the greater the probability that the company
will use a family branding strategy rather than an individual branding strategy. This is
because family branding allows them to leverage the equity accumulated in the core
brand. Aspects of brand equity include: brand loyalty, awareness, association (read
more here), and perception of quality.

Customer Based Brand Equity:

Imagine walking in aisle of a typical super market (Shaw‘s, Costco etc) to purchase salt,
there are many offerings but choice is ―Morton‖. It is a simple example but a great
situation to understand brand and brand equity. Companies already know that identity of
product created over period of time through strategic marketing is brand, but now what
is ―Brand Equity‖. From customer‘s point of view, association created which results in
favorable and positive action towards a brand, in context with other product can be
referred as brand equity. If that action is in favor of any brand than is positive brand
equity and that action is not favorable than its negative brand equity. Therefore in the
above example, action of consumer in purchasing ―Morton‖ is suggesting positive brand
equity. And since this brand equity is from customer‘s perspective. Brand equity is a
good barometer to understand past action and future course of action for marketers, who
are active in formulating strategies for a given brand. If in present, customer has
developed favorable attitude towards the brand then it is a clear indication that past
investment (time, money, etc) have found there mark.
The present also leads the way how marketers should plan future course, as to achieve
desired results. But one aspect is absolutely clear that brand knowledge is a key factor in
establishing brand equity.

To further stress point of brand knowledge, an experiment was conducted by Larry Percy
with respect to brand equity using Beer as product. Aim was to understand consumer
response for the same brands under two different set ups. The first set up was where
consumer had no knowledge about the brand and in the second next set up, brand name
was not disclosed. Result showed that consumer were highly critical of preferred beer
when they were not aware of brand. A favorable response was recorded after brand
disclosure, leading to conclusion that brand knowledge contributes a lot in understanding
customer based brand equity.

Brand knowledge which is crucial in evolution of brand equity consists of brand

awareness and brand image. Here brand awareness means the ability created by brand with
which consumer can recall and recognize in any given environment. On the other hand
brand image are visuals, logo, style etc with which brand is associated. Customer based
brand equity results in creation of strong brand and this is achieved when brand
awareness and image are at high level. But how to create a strong brand based brand
equity ?A thing to understand here is that brand equity resides in the mind of the
customer, so conviction has to be brought in strategy as to permanently occupy consumer
mind space. The process is like climbing a ladder, one step at a time. And at each step an
objective is achieved creating leading to a strong brand. First step is to establish a relation
between customer need and product offering, meaning for given product the brand is the
best customer can get. This is done by appropriate brand awareness and image. Second
step is connection, by churning out predictable, reliable and quality performance during
each purchase. This establishes imprint in customer‘s mind which further can be
cemented by visual, logos, packaging, quality, customer service, warranty, etc. Next
create emotional connection with customer using brand offering and brand image as to
generate response from the customer. The emotional level response in form of positive
reaction or opinion brand creates long term, sustainable and healthy relationship. A
classic example here would be of ―Google‖ and ―Apple‖. These brands have become
synonymous with search engine and entertainment in mind of customers. When brand is
able to achieve sense of oneness with its consumer then it can be said that strong brand
has been created. Companies tend to benefit a lot, in terms loyalty as consumer will stick
to the brand no matter what price premium they have to shell out. These consumers
become sort of brand ambassador and recommending usage of brand. There by creating
consumer based brand equity.
Customer-based brand equity has an Differential effect and are Customer brand
knowledge, uses customer response to brand marketing building. Brand knowledge
structures depend on the initial choices for the brand elements,The supporting marketing
program and the manner by which the brand is integrated into itOther associations
indirectly transferred to the brand by linking it to some other entities.

Benefits of Customer-Based Brand Equity

• Enjoy greater brand loyalty, usage, and affinity

• Command larger price premiums
• Receive greater trade cooperation & support
• Increase marketing communication effectiveness
• Yield licensing opportunities
• Support brand extensions.

Customer-Based Brand Equityas a “Bridge”

• Customer-based brand equity represents the ―added value‖ endowed to a product

as a result of past investments in the marketing of a brand.
• Customer-based brand equity provides direction and focus to future marketing
activities

Motivation for Customer-Based Brand Equity Model

Marketers know strong brands are important but aren‘t always sure how to build one.
CBBE model was designed to be comprehensive, cohesive, well-grounded, up-to-date,
actionable

Rationale of Customer-Based Brand Equity Model

Basic premise: Power of a brand resides in the minds of customers. Challenge is to

ensure customers have the right types of experiences with products & services and their
marketing programs to create the right brand knowledge structures: Thoughts, Feelings,
Images, Perceptions Attitudes
Building Customer-Based Brand Equity

Building a strong brand involves a series of steps as part of a ―branding ladder‖A strong
brand is also characterized by a logically constructed set of brand ―building blocks.‖

Identifies areas of strength and weakness and provides guidance to marketing activities

Brand Identity Prism by Kapferer

Brand Identity Prism is often used by marketers to gauge the identity for any brand. But
before the application of any model, few obvious questions which come to our mind are:-

What is it?

When should it be used?

How to use it?

Now suppose if a product or a brand (taking the liberty of equating product with brand )
was a person, how would he look like? What traits would he have? Would he be warm,
cold, aggressive, approachable or smart?

Brand identity prism helps us provide answers to these questions.

Ok so the next logical question is when to use it?

I would say practically everywhere. Understanding of the identity would help design your
web presence better, would decide the positioning and have an effect on all marketing
collaterals.

The best way to understand the model is to call up a meeting of all department heads and
ask questions, lot of questions.

The model has 6 dimensions on which a brand is to be evaluated.

Physical Facet talks about what the product is, what does it do, how does it add value to
customers, how does it fill up the gap in the market.

Brand personality is measured using those traits/features of consumer personality that are
directly related to brands. Proper care should be taken not to confuse it with consumer's
reflection. Brand personality is closely linked with self image and image of the consumer.
Questions to be asked are:

1. What are the features of consumer personality?

2. What are the features of brand if it was a person? This depends on the functional
aspect of the product and the gap it would fill.

Brand Culture: As the name signifies, it talks about the culture of the brand. The values
and the principles will follow from the culture and it is these values which will bind the
customers. Remember HSBC's "The World's local bank".

Questions which need to be asked:-

1. Is the brand's culture global?

2. What are the values for which the brand stands for?
3. How would customers take the values of such a brand?

Brand Relationships: No prizes for guessing what would this be about! Yes, after all
every brand has to maintain healthy relationships with customers. All marketing
collaterals are intended to do just that. Therefore to gauge the identity, this had to feature.

1. How would Sales describe the relationship attributes for their customer
management process?
2. How would Customer support describe their approach to increasing customer
satisfaction?
3. How does the brand want to be seen by customers in marketing communication?

Customer Reflection: Every product is designed to satisfy some need of the intended
customer base. A consumer has to be reflected in a way, which would show how he or
she could image himself consuming a particular good. For example, in India anyone
consuming Pepsi Cola would imagine himself to be young and Thums up (another cola
drink from Coke stable) to be adventurous. For this aspect, questions are to be put to
customer experience team about What would the users imagine while using the product?

Customer Self Image: Consumers get attracted to those brands in which they see their
own traits, for example, a man who is muscular and strong would smoke Marlboro. This
goes hand in hand with brand personality.

Physical Facet, Brand Relationship and Customer reflection are externalization factors
whereas the rest represents internalization. I know it is a bit tedious but am sure if applied
correctly it can reap huge benefits for corporate.

Brand Identity Prism With Pepsi As An Example

Several market research questionnaires over the years ask some basic question about a
brand / product. These questions may be like ―if xyz brand was a person, who would you
compare him with‖, ―if xyz brand was a person, what would its age be‖, ―is XYZ brand
aggressive, warm, humble‖ etc

Thus these questions compare a brand to a person. The brand identity prism therefore
applies human traits to a brand to recognize what consumers actually think of the brand.
The brand identity prism, as the name suggests comes in the form a prism with 6 different
traits at each end of the prism. These 6 traits are

1) Physique – Physique is the basis of

the brand. It may include product
features, symbols and attributes.

2) Personality – Personality defines

what personality will the brand assume
if it were a person. Personality includes
character and attitude.

3) Culture – Culture takes a holistic view of the organization, its origins and the values it
stands for.

4) Relationship – The strength of the relationship between the brand and the customer. It
may represent beliefs and associations in the human world.

5) Reflection – What does the brand represent in the customers mind or rather the
customer mindset as reflected on the brand

6) Self image – How does the customer see himself when compared to the brand.
Example – A customer might see himself capable or incapable of buying a BMW car.

Below is a detailed brand identity prism for the brand Pepsi

Pepsi‘s brand identity has transformed over the years, but primarily it has remained as a
youthful brand which empowers people to enjoy their youth. The external and internal
indicators of Brand Identity have been modified many times. Its logo, trademark, etc have
undergone many changes over time but the distinct identity of Pepsi has been maintained.
We also see a consistency in brand positioning for Pepsi as a Youth oriented brand. Its
tagline in India ―YEH HAI YOUNGISTAN MERI JAAN‖ exemplifies that essence.
Pepsi‘s brand identity using Kapferer‘s Identity prism is as follows
 4. DATA ANALYSIS AND INTERPRETATION:

Q.1) Which Product comes to your mind when you think about cold drinks?

25

20
Percentage

15

Spirit
10
Pepsi
5 Others

0
30 - 40% 40 - 80% 80 - 100%

Customer Respondents

Interpretation:
As shown in the graph 30 – 40 % people mostly prefer Spirit (Coco Cola) , whereas
40 – 80% people opted for Other products. But the majority people that are 80 – 100%
people stated that Pepsi is the No 1 product which comes to there mind when the term
cold strikes to them.
 2) Which aspect of the product motivates you to buy it?

20
18
16
14
Percentage

12
10
8 Spirit
6 Pepsi
4
2
0
Look Price Advertisement Others

Customer Respondents

Interpretation:
As shown in the graph 14 percent people stated that the ‗Look‘ of the product
motivates them to buy the product, whereas 17 people stated that ‗Price‘ motivates
them. But the majority people stated that ‗Advertisement‘ plays a major role in
motivating and attracting the people to purchase the product. And lastly only 17 people
states other reasons.
Q.3) Do you purchase the product only because of the celebrity promoting it?

20
18
16
14
Percentage

12
10 Spirit
8
Pepsi
6
Others
4
2
0
Yes No Sometimes

Customer Respondents

Interpretation:
As shown in the graph 18 percent people states that celebrity promotion do affect
there purchasing decision whereas 13 percent does not goes with these perception.
And only 15 people states that sometimes such aspect do affect there purchase
behavior.
Q.4) What rank will you give the following product out of 10?

16

14

12

10
Rank

8
Spirit
6 Pepsi
4 Others

0
30 - 40 % 40 - 80 % 80 - 100%

Customer Respondents

Interpretation:
As shown in the graph 30 – 40% and 40 – 80 % peoplegives highest rank to Pepsi,
Whereas majority people that is 80 – 100% people gives highest rank to Spirit (Coca
Cola).
Q.5) Which mode of advertisement do you prefer the most?

20
18
16
14
12
Percentage

10
8 Spirit
6
Pepsi
4
2
0
TV. Hoardings Radio Internet
Adverstisement

Customer Respondents

Interpretation:
As shown in the graph 18 % people said that they prefer T.V Advertisement,
whereas 15 % goes with Hoardings, 17 % people prefer Radio promotion. And a
only 17 % people goes with Internet Promotion.
Q.6) Are the products available at nearby store?

18

16

14

12
Percentage

10

8 Spirit
6 Pepsi

0
Yes No Sometimes

Customers Respondents

Interpretation:
As shown in the graph 17 % people states that the products are available in the
nearby market whereas only 4 % people states that the product are not available. 15
% people states that sometimes the product is not available in the market.
Q.7) Which celebrity do you want to promote the product?
25

20

Percentage
15

10
Spirit

5 Pepsi

0
Imran Khan Shah Rukh Parineeti Kareena Others
Khan

Customer Respondents

Interpretation:
As shown in the graph, 16 % people want Imran Khan to promote Spirit and 14 %
wants him to promote Pepsi. 17 % people want Shahrukh Khan to promote Spirit
and 13 % wants him to promote Pepsi. 18 % people want Parineeta Chopra to
promote Spirit and 12 % wants him to promote Pepsi. 14% people want Imran Khan
to promote Spirit and 12 % wants him to promote Pepsi. And the remaining people
opts other celebrities.
Q.8) Do you think image or activities of the brand ambassador affects the value of the
product in the minds of customers?

30

25
Percentage

20

15
Spirit
10
Pepsi

0
Yes No Sometimes

Customer Respondents

Interpretation:
As shown in the graph 18 % people believe that image or activities of the brand
ambassador affects the value of the product in the minds of customers, Whereas
20 % people states they do not believe image or activities of the brand ambassador
affects the value of the product in the minds of customers. Only 15 people stated that
Sometimes image or activities of the brand ambassador affects the value of the product in
the minds of customers
Q.9) Do you think price of the product affects the purchasing decision?

20
18
16
14
12
Percentage

10
8 Spirit
6 Pepsi
4
2
0
Yes No Sometimes

Customers Respondents

Interpretation:
As shown in the graph, 18 % people states that it affects the purchase decision, whereas
12 % people states that it does not affects the purchase decision. Only 15 % people
states sometimes it affects the purchase decision.
Q.10) Do you think price of the product is fair enough?

18
16
14
Percentage 12
10
8
6 Spirit
4 Pepsi
2
0
Yes No

Customer Respondents

Interpretation:
As shown in the graph, 16 % people states that the price of the product is fair, Whereas
only 10 % people states that the price of the product is not fair.
Q. 11) Do you think the look of the product affects the purchasing behavior of the buyers?

20
18
16
14
Percentage

12
10
8 Spirit
6 Pepsi
4
2
0
Yes No Sometimes

Customer Respondents

Interpretation:
As shown in the graph, 16 % people states look of the product affects the
purchasing behavior of the buyers, and 18 % people states look of the product
does not affects the purchasing behavior of the buyers. Only 15% people states
sometimes look of the product affects the purchasing behavior of the buyers.
 5. FINDING RECOMMENDATION AND CONCLUSION:

Findings Recommendations:

 It was observed that Spirit is most preferred than Pepsi.

 Advertising has an great impact on the value of the product

 Special Measures should be taken for brand upliftment in the minds of

customer.

 There is no standard method for measuring (evaluating) brand equity, so

necessary steps should be taken to come up with standard method.

Conclusion:

 This project report had helped us to better understand the concept of

brand equity.

 Enable us to study the advertising strategies undertaken by PEPSI and

COCO COLA companies.

 It had helped to understand the concepts of brand, branding and brand

equity.

 This project report enabled us procure brand valuation and evaluation

technique in PEPSI and COCO COLA companies.
BIBLOGRAPHY:

http://www.wpp.com/wpp/press/press/default.htm?guid={92b52c53-fc68-45e0-aaea-
34fe6fbd769b}

http://www.harrisinteractive.com/NewsRoom/PressReleases/tabid/446/mid/1506/articl
eId/1035/ctl/ReadCustom%20Default/Default.aspx

http://brandvision2009.wordpress.com/2009/07/09/introduction-to-brand-equity/
Annexure
Questionnaire
Dear Sir/ Madam,

I Ms. Radhika Malakar student of TYBMS - A doing a project of 200 Marks as a partial
fulfilment of my bachelors degree(BMS). Kindly cooperate by filling the questionnaire.

1. Which Product comes to your mind when you think about cold drinks?

a)Spirit b)Pepsi c)Others

2. Which aspect of the product motivates you to buy it?

a)Look b)Price
c)Advertisement d)Thirst

3. Do you purchase the product only because of the celebrity promoting it?

a) Yes b)No c)Sometimes

4. What rank will you give the following product out of 10?

a)Pepsi
b)Sprite
c)Frooti

5. Which mode of advertisement do you prefer the most?

a)T.V Advertisements b)Hoardings

c)Radio d)Internet

6. Are the products available at nearby store?

a)Yes b)No c)Sometimes

7. Which celebrity do you want to promote the product?

a)Imran Khan b)Shahrukh Khan

c)Parineeti Chopra d)Kareena Kapoor
e)Others

8. Do you think image or activities of the brand ambassador affects the value of the
product in the minds of customers?

a)Yes b)No c)Sometimes

 9. Do you think price of the product affects the purchasing decision?

a)Yes b)No c)Sometimes

10. Do you think price of the product is fair enough?

a)Yes b)No c)Sometimes

11. Do you think the look of the product affects the purchasing behaviour of the buyers?

a)Yes b)No c)Sometimes

12. Any recommendations:_____________________________________________

___________________________________________________________________
___________________________________________________________________
___________________________________________________________________

1.
Part B

Name: ________________________________________________________

Age: ________________________________________________________

Gender: ________________________________________________________

Martial Status: ________________________________________________________

Occupation: ________________________________________________________

Profession: ________________________________________________________

Salary:

>10000 10000 - 20000 < 20000

Locality: ________________________________________________________

Mobile No: ________________________________________________________