You are on page 1of 131

CONSUMER BUYING BEHAVIOUR TOWARDS AREATED DRINKS WITH A COMPARATIVE ANALYSIS BETWEEN PEPSI & COKE

VS.

ACKNOLWEDGEMENT
A Confession ! This might seem to be a strange way to begin, But then I hate using the first person, Nearly everything that I have done till date has been accomplished with other people, yet when you compile a report like this you are forced to use the narrative I when its really the we that counts. So please remember that every time you see the word I, in the following pages, it refers to all those who have helped me in reaching For all that I am today and everything I might be Proud of tomorrow my parents are responsible I am also grateful to all my friends, seniors and colleagues. Lastly I would like to thank the Almighty for his love and blessings which make my clock tick.

TABLE OF CONTENTS
1. 2. 3. 4. EXECUTIVE SUMMARY RESEARCH OBJECTIVE RESEARCH METHODOLOGY 1 2 3 4-22 4-6 7-8 (c) 9 10 11 12-13 14 15 16-17 18 19-21 22 23 24-76 Introd 24 Pepsi 25 Corpor 25 Pepsi26-27 Frito 28 Gatora 29 Quake 30 Pepsi 31-32 Down 33-68 Pepsi 69 Chann 70

SOFT DRINK INDUSTRY AN OVERVIEW (a) Background (b) Market characteristics c Segmentation (d) Retailers perception (e) Consumer habits (f) Major players and market shares (g) Market size and Growth (h) Manufacturing process (i) Distribution network (j) Pricing d (k) Advertising (l) SWOT analysis of the Areated drink industry in India 5. PEPSI MISSION STATEMENT 6. OVERVIEW (a) uction (b) Co Headquarters (c) ate Citizenship (d) Cola North America & PepsiCo beverages International (e) Lay North America & International (f) de\Tropicana North America (g) r Foods North America (h) Co Products (i) the memory lane "History & Advertising highlights" (j) Co environmental commitment (k) el Management

(l) Process (m) werment (n) acturing Process (o) ging (p) 7. COMPANY PROFILE "RKJ GROUP" 8. GRAPHICAL PRESENTATION & ANALYSIS 110 9.CONCLUSION 10. BIBLIOGRAPHY 11. ENCLOSURES TO THE REPORT.

Selling 70 Empo 71 Manuf 71-74 Packa 74-75 Pricing 76 77-78 79111-112 113

EXECUTIVE SUMMARY
This maiden effort is an attempt to introduce the reader to the factors that govern the Areated drink Industry. The first part tries to give the reader an overview of the Areated Drink Industry with a brief SWOT Analysis. The second part introduces the reader to the World of Pepsi (History, Present and Future) and the Chief Bottler the R.J.K. Group. In the third part I have tried to provide practical alternate solutions for Sales and Market Expansion of Pepsi after analyzing the Research Findings.

REASEARCH OBJECTIVES

General Objective: To get a practical dimension of the various theories and management principles imparted to me in college. To get a feel of the corporate jungle in order to enhance my vision and career opportunities.

Core Objective:

To assess the consumer buying behaviour of the targeted audience with respect to areated drinks.

To assess the awareness level of the target audience with respect to pricing and promotional schemes of various brands in Noida region.

RESEARCH METHODOLOGY
Data sources: the data was collected from both primary sources and secondary sources. The primary source of information was collected through survey of 200 people in the entire Noida City. The required secondary data was collected from, newspapers, magazines, and pamphlets, trade journals, Information Brochures. The data capturing instrument (DCI) used to collect primary data was the Questionnaire. The DCI consisted of: Open-ended questions Closed-ended questions Multiple choice questions The universe was divided into a sample of 200 respondents. The respondents consisted of : Different age groups Males and females

People from different localities within Noida region.

Chapter-1 INTRODUCTION

1.1 OVERVIEW OF THE COMPANY PepsiCo is a world leader in convenient foods and beverages, with revenues of about $27 billion and over 143,000 employees. The company consists of the snack businesses of Frito-Lay North America and Frito-Lay International; the beverage businesses of Pepsi-Cola North America, Gatorade/Tropicana North America and PepsiCo Beverages International; and Quaker Foods North America, manufacturer and marketer of ready-to-eat cereals and other food products. PepsiCo brands are available in nearly 200 countries and territories. Many of PepsiCo's brand names are over 100-years-old, but the corporation is relatively young. PepsiCo was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay. Tropicana was acquired in 1998 and PepsiCo merged with The Quaker Oats Company, including Gatorade, in 2001. PepsiCos success is the result of superior products, high standards of performance, distinctive competitive strategies and the high integrity of our people. Our overriding objective is to increase the value of our shareholders' investment through integrated operating, investing and financing activities. Our strategy is to concentrate our resources on growing our businesses, both through internal growth and carefully selected acquisitions. Our strategy is continually fine-tuned to address the opportunities and risks of the global marketplace. The corporation's success reflects our continuing commitment to growth and a focus on those businesses where we can drive our own growth and create opportunities.

PEPSICO HEADQUARTERS PepsiCo World Headquarters is located in Purchase, New York, approximately 45 minutes from New York City. The seven-building headquarters complex was designed by Edward Durrell Stone, one of America's foremost architects. The build-ding occupies 10 acres of a 144-acre complex that includes the Donald M. Kendall Sculpture Gardens, a world acclaimed sculpture collection in a garden setting. The collection of works is focused on major twentieth century art, and features works by masters such as Auguste Rodin, Henri Laurens, Henry Moore, Alexander Calder, Alberto Giacometti, Arnaldo Pomodoro and Claes Oldenberg. The gardens were originally designed by the world famous garden planner, Russell Page, and have been extended by Franois Goffinet. The grounds are open to the public, and a visitor's booth is in operation during the spring and summer.

CORPORATE CITIZENSHIP PepsiCo believes that as a corporate citizen, it has a responsibility to contribute to the quality of life in our communities. This philosophy is put into action through support of social agencies, projects and programs. The scope of this support is extensive ranging from sponsorship of local programs and support of employee volunteer activities, to contributions of time, talent and funds to programs of national impact. Each division is responsible for its own giving program. Corporate giving is focused on giving where PepsiCo employees volunteer.

PEPSI-COLA NORTH AMERICA AND PEPSICO BEVERAGES INTERNATIONAL PepsiCos beverage business was founded at the turn of the century by Caleb Bradham, a New Bern, North Carolina druggist, who first formulated Pepsi-Cola. Today consumers spend about $33 billion on Pepsi-Cola beverages. Brand Pepsi and other Pepsi-Cola products including Diet Pepsi, Pepsi-One, Mountain Dew, Slice, Sierra Mist and Mug brands account for nearly one-third of total soft drink sales in the United States, a consumer market totaling about $60 billion. Pepsi-Cola also offers a variety of non-carbonated beverages, including Aquafina bottled water, Fruitworks and All Sport. In 1992 Pepsi-Cola formed a partnership with Thomas J. Lipton Co. Today Lipton is the biggest selling ready-to-drink tea brand in the United States. Pepsi-Cola also markets Frappuccino ready-to-drink coffee through a partnership with Starbucks. In 2001 SoBe became a part of Pepsi-Cola. SoBe manufactures and markets an innovative line of beverages including fruit blends, energy drinks, dairy-based drinks, exotic teas and other beverages with herbal ingredients. Outside the United States, Pepsi-Cola soft drink operations include the business of Seven-Up International. Pepsi-Cola beverages are available in about 160 countries and territories. Pepsi-Cola began selling its products internationally in 1934 with its operations in Canada. Operations grew rapidly beginning in the 1950s. In addition to brands marketed in the United States, major products include Mirinda and Pepsi Max. Pepsi-Cola North America includes the United States and Canada. Key international markets include Argentina, Brazil, China, India, Mexico, Philippines,

Saudi Arabia, Spain, Thailand and the United Kingdom. PepsiCo Beverages International also produces, sells and distributes Gatorade sports drinks as well as Tropicana and other juices internationally. Pepsi-Cola provides advertising, marketing, sales and promotional support to Pepsi-Cola bottlers and food service customers. This includes some of the world's best-loved and most-recognized advertising. New advertising and exciting promotions keep Pepsi-Cola brands young. The company manufactures and sells soft drink concentrate to Pepsi-Cola bottlers. The company also provides fountain beverage products.

1.2 HISTORY

1893: Caleb Bradham, a young pharmacist from New Bern, North Carolina, begins experimenting with many different soft drink concoctions; patrons and friends sample them at his drug store fountain. 1898: One of Bradham's formulations, known as "Brad's Drink," a combination of carbonated water, sugar, vanilla, rare oils and kola nuts, is renamed "Pepsi-Cola" on Aug. 28. 1907: Pepsi-Cola Company continues to expand. The bottling network reaches 40 franchises, the trademark is registered in Mexico and syrup sales top 100,000 gallons. 1908: Pepsi-Cola becomes one of the first companies to modernize delivery from horse-drawn carts to motor vehicles. A total of 250 bottlers are now under contract in 24 states 1909: Automobile racing pioneer Barney Oldfield becomes the first celebrity to endorse Pepsi when he appears in newspaper ads describing Pepsi as "A bully drinkrefreshing, invigorating, a fine bracer before a race." The theme, "Delicious and Healthful" appears, and will be used intermittently over the next two decades. 1910: The first Pepsi-Cola bottlers' convention is held in New Bern, North Carolina 1917-18: Price controls hold sugar at 5-1/2 cents per pound during WWI. When the war ends, so do the price controls. And the price of sugar begins an upward spiral. 1936: Pepsi-Cola Limited of London is established. 94 new U.S. franchises are granted. Year-end profits reach $2,100,000.

1938: The trademark is registered in the Soviet Union. There are 85 Pepsi-Cola bottlers operating under franchise agreements across Canada. 1939: Having survived the Great Depression and a handful of ownership changes, Pepsi is still being sold in a 12-ounce bottle for just a nickel -twice as much refreshment as other soft drinks for the same price. A newspaper cartoon strip, "Pepsi & Pete," introduces the theme "Twice as Much for a Nickel" to increase consumer awareness of the Pepsi value advantage. Walter S. Mack Jr. is elected President of Pepsi-Cola Company. 1940: Pepsi makes advertising history with the first advertising jingle ever broadcast nationwide. "Nickel, Nickel," will eventually become a hit record and will be translated into 55 languages. A new, more modern logo is adapted. 1941: In support of America's war effort, Pepsi changes the color of its bottle crowns to red, white and blue. A Pepsi canteen in Times Square, New York, operates throughout the war, enabling more than a million families to record messages for armed services personnel overseas. Pepsi-Cola Company, until now a subsidiary of Loft Incorporate, is merged with Loft. Since the Pepsi brand name has become more famous than that of its owner, the parent company's name is changed to Pepsi-Cola Company. Pepsi's stock is traded on the New York Stock Exchange for the first time. 1954: "The Light Refreshment" evolves to incorporate "Refreshing Without Filling." 1956: 149 Pepsi-Cola bottling plants are operating in 61 countries outside the U.S.

1958: Pepsi struggles to enhance its brand image. Sometimes referred to as "the kitchen cola," as a consequence of its long-time positioning as a bargain brand, Pepsi now identifies itself with young, fashionable consumers with the "Be Sociable, Have a Pepsi" theme. A distinctive "swirl" bottle replaces the earlier straight-sided bottle. Frito-Lay pioneers the use of hand-held computers for marketing. 1988 :Pepsi-Cola Company is reorganized along geographic lines - East, West, South and Central regions - each with its own president and senior management staff. Pepsi-Cola International enters a landmark joint venture agreement

in India. Renewed accord with the Soviet Union extends PepsiCo trade

relationships. Hostess Frito-Lay, a major new partnership in Canada, is formed

with Hostess Foods in Canada. "Chase," a four-part Pepsi ad featuring Michael Jackson in his first-

ever episodic commercial, airs during the Grammy awards and becomes the most-watched commercial in advertising history. Pepsi-Cola runs first paid advertisement on Soviet TV during

"Pozner in America," a joint US-Soviet production. Worldwide retails sales of Doritos brand tortilla chips hit $1 billion. It

is the world's largest selling snack chips brand. Pepsi and Michael Jackson raise $600,000 with a special New York

City concert benefiting the United Negro College Fund.

2000 Pepsi-Cola Co. launches new beverage line, FruitWorks, a five flavor line of fruit drinks. Tropicanas Pure Premium Multivitamin juice voted "Best Product of the Year " in the Total Soft Drink and Juice category in France. Hallie Eisenberg, star of Pepsi commercials, receives Young Artist Special Achievement Award. Pepsi-Cola revives its "Pepsi Challenge" advertising campaign. Challenge includes Pepsi One and Diet Coke as well as regular cola. Pepsi-Cola teams up with Yahoo Inc., the biggest web navigation company, in a multimedia marketing campaign aimed at teens and young adults. Liptons Iced Tea and Lipton Brisk sign three-year deal to become "Official Iced Tea of the PGA Tour." Mountain Dew debuts new Spanish language commercial, "Arcade." Tropicana, in a joint venture with Galaxy Foods Co., will introduce an icy smoothie soy milk-and-fruit drink, made with juice, fruit puree along with soymilk and soy protein. Pepsi and Warner Music introduce "Choose Your Music" promotion. PepsiCo, Inc. renewed agreement to sell Pepsi-Cola, Mountain Dew and other Pepsi beverages at Tricon Global Restaurants Inc.s US locations for 12 years. Aquafina brand bottled water becomes the best-selling brand of singleserve bottled water in US retail channels. Pepsi donates $100,000 to Michael J. Fox Foundation for Parkinsons Research. The actor has appeared in the Award Winning Diet Pepsi commercial "Apartment 10G." The PepsiCo Foundation has endowed a $200,000 fellowship fund at

Harvard in the name of the late Pepsi-Cola executive Naylor Fitzhugh. FORTUNE magazine names PepsiCo one of Americas "50 Best Companies for Minorities." PepsiCo presents Leadership gift of $500,000 to Urban League Breakthrough! Campaign. PepsiStuff.com, a web site for merchandise, discounts and digital music files from biggest names in movies, music, video games, apparel and sports is launched in joint promotion with Yahoo. Global Finance magazine names PepsiCo to its list of The Worlds Best Global Companies. Pepsi teams up with Yahoo! in a Spanish back-to-school contest called "Tu Sabor, Tu Futuro" ("Your Taste, Your Future"). Nationwide contest offers opportunities to win $10,000 college scholarships. Minority MBA magazine names PepsiCo one of "Ten Top Companies for Minority MBAs". Dawn Hudson, senior vice-president, strategy and marketing for PepsiCola North America, ranked among 50 most powerful people in marketing by Ad Age. Pepsi-Cola launches "Sierra Mist" a caffeine-free, lemon/lime soda. FORTUNE magazine names Indra Nooyi, PepsiCo Inc.s CFO as one of "The 50 Most Powerful Women in Business." The North American Coffee Partnership launched Caramel-flavored bottled Frappuccino Coffee Drink the sixth flavor addition to its popular line of ready-to-drink coffee. PepsiCo, Inc. reaches agreement to acquire a majority stake in South Beach Beverage Company, whose highly innovative SoBe brand has made it one of industrys most successful companies.

Pepsi-Cola Co.s program to assist music education in schools, called "Share the Joy with Music," is in stores nationwide. PepsiCo announces $4 billion share repurchase program. PepsiCo, Inc. and The Quaker Oats Company reached an agreement to merge. PepsiCo, Inc. rescinds share repurchase program. 2001 PepsiCo completes the acquisition of a majority stake in South Beach Beverage Co. PepsiCo announces a new joint venture will be formed in Egypt combining the salty snack operations of Chipsy, the current market leader, and Tasty Foods, which is owned by PepsiCo. PepsiCo launches Diversity@work, http://www.pepsico.com/diversity web site. Pepsi-Cola Company launches Dole single-serve juices in vending machines, coolers and other retail outlets throughout the United States. Mountain Dew announces a multiyear agreement with Evernham Motorsports to sponsor the crew of Atwood #19 Dodge Dealers Intrepid R/T race team on the 2001 NASCAR Winston Cup circuit. Pepsi-Colas flagship brand will have new tagline, "The Joy of Pepsi." Pepsi-Cola announces a multi-year agreement with Britney Spears as part of the "Joy of Pepsi" campaign. Pepsi will also co-sponsor Spears upcoming worldwide concert tour. Tropicana celebrates a company milestone 300 billion fresh oranges squeezed since the company began making countrys first ever massdistributed, not-from-concentrate juice in 1947. The first Winston Cup race at NASCARs newest track, the

Chicagoland Speedway will be the Tropicana 400 on July 15. Frito-Lay announces the launch of Cheetos Mystery Colorz Snacks, a cheesy new Cheetos product that magically turns color in your mouth. Tropicana introduces Smoothies. A natural juice-based product, smoothies combine fruit juices and non-fat yogurt into a smooth, filling drink that delivers nutrition, taste and convenience. Planned merger of PepsiCo and Quaker gets European Commission clearance. On April 7, World Health Day, Tropicana sponsors The Tropicana Health Run in New Delhi, India, a benchmark event that drew 10,000 promising athletes and raised funds to fight AIDS. Pepsi-Cola Company has signed an exclusive licensing agreement with AmeriCoGroup to create new lines of apparel, footwear and accessories for the Pepsi and Mountain Dew brands in the United States and Canada. The launches are scheduled for the spring 2002 fashion season. May 1- Pepsi-Cola launches the bold new Mountain Dew Code Red nationwide. It is Mountain Dews first line extension since the introduction of Diet Mountain Dew in 1988. PepsiCo is a sponsor of the Keep America Beautiful annual Great American Cleanup. The company provides posters with image of Iron Eyes Cody, the "Crying Indian." May 1 -PepsiCo shareholders overwhelmingly approve plan to merge with The Quaker Oats Company. May 2 The Board of Directors of PepsiCo, Inc. elected Steven S Reinemund chairman of the board and chief executive officer, succeeding Roger Enrico who will become vice chairman. The board

also elected Indra K. Nooyi as a director and gave her the additional title of president of PepsiCo in addition to CFO. Frito-Lay introduces Lays Bistro Bistro Gourmet potato chips. Pepsi-Cola Company introduces a "Pepsi Twist." Regular and diet versions of the crisp new cola with lemon are entering retail outlets in selected U.S. markets. Tropicana Smoothies, a juice and yogurt drink, debut in test markets. PepsiCo moves up Fortunes List of Best Companies for Minorities to #13. SLAM, the orange brand Mirinda, is launched in Italy. PepsiCo acquires Tasali Foods, Saudi Arabias leading snack company. On August 2, PepsiCo completes its merger with The Quaker Oats Company, creating a $25 billion food and beverage company focused on the rapidly growing consumer demand for convenience. PepsiCo introduces a new corporate logo. Following the September 11 tragic events of terrorist attacks, the PepsiCo Foundation donates $5 million in support of relief efforts. Tropicana Pure Premium Low Acid orange juice makes official debut at Tropicana 400. Diet Sierra Mist is introduced. Pepsi kicks off online marketing with Yahoo. Soon after, Adweek Names Pepsis Premier of Britneys As on Yahoo! Best Online Event of 2001. PepsiCo wins the first mulitcultural awards competition held by the Association of National Advertisers. DiversityInc.com says Pepsi beats Coke in Diversity Cola Wars.

Pepsi-Cola introduces Credit Card Vending. 2002 Forbes names PepsiCo one of the Platinum 400, "The Best Big Companies in America." Frito-Lay introduces Go Snacks, canisters that truly go anywhere. Gatorade introduces new Gatorade ICE subline in three flavorsOrange, Lime and Strawberry. Tropicana Pure Premium announces sponsorship of Disney's awardwinning show The Lion King.

MARKET CHARACTERISTICS
The soft drink market is highly skewed in terms of place of consumption , in terms of regional distribution & soft drink flavours as well as in terms of SKUs While 80% of the consumption is impulse based outside home 20% comes from consumption at home. This trend is slowly changing with increase in occasion led sales. Changing life style , increasing urbanization and impact of liberalization has slowly and gradually started moving the market from impulse led to occasion led and home refrigeration led consumption. The market preference is highly regional based. While cola drinks have main markets in metro cities and northern states of UP, Punjab, Haryana etc. Orange flavoured drinks are popular in southern states. Sodas too are sold largely in southern states besides sale through bars. Western markets have preference towards mango flavoured drinks. Diet Coke presently constitutes just 0.7% of the total carbonated beverage market. In terms of SKUs the market is skewed towards 300ml which constitutes around 80-85% of the market rest is in the form of other pack sizes, but with increasing occasion led and home refrigeration led consumption the sales of bigger SKUs like more than 1 Litre pack sizes has increased this has led to increase in contribution from PET bottle sales to 15% of the total turnover in FY00. and most of these PET bottle sales, upto 75% are in urban areas. Another skewness is in terms of the time of the year when the consumption takes place. Most of the sales of soft drinks take place during summers while just 5-6% of total sales take place in winters. In summers the high season lasts for 70-75 days which contributes more than 50% of the total yearly sales.

Another peculiar feature of the market is that of positioning and targeting of various brands. While Cola brand of Coke is targeted at teenagers and is positioned as refreshment for mind and body. Its ThumpsUp brand is targeted at people in age group of 20-29year positioned as thing for adventure-loving, successful and macho person. Fanta is targeted at consumers in pre-teen age group and is positioned as fun thing. Sprite is targeted towards teenagers positioned to convince them to follow their instincts and not to fall for false pretence. Maza is positioned as family drink while Diet Coke is targeted towards health and figure conscious people especially teenage girls. Pepsi's cola product is targeted towards youth while the Mirinda and 7 Up are positioned on fun platform and for enjoying light moments of life. The distribution network of Coca Cola had6.5 lakh outlets across the country in FY00 which the company is planning to increase to 8lakhs by FY01.On the other hand PepsiCo's distribution network had 6 lakh outlets across the

SEGMENTATION
The soft drink market can be segmented on the basis of place of consumption or on the basis of type of products. The segmentation on the basis of place of consumption divides the market into two parts: On-premise-80% of the consumption of soft drinks is on premise i.e. restaurants, railways stations, cinema etc. At home the rest 20% of the market compromises of the soft drink purchase for consumption at home The market can also be segmented on the basis of types of products into cola products and non-cola products. Cola products account for nearly 61-62% of the total soft drinks market. The brands that fall in this category are Pepsi, Coca-Cola, Thumsup, and Diet coke, Diet Pepsi etc. Non-cola segment which constitutes 36% can be divided into 4 categories based on the types of flavors available, namely: Orange Cloudy Lime Clear Lime Mango Apple etc.

RETAILERS PERCEPTION
A survey was conducted to study the retailers views of the present market, future trend and the consumer behavior patterns. The findings of the survey are as follows:

Retailers stated that the consumers are loyal to the particular segment of the soft drink i.e. cola, orange or lemon. But as far the loyalty for the brands in each segment is concerned, it is not very significant.

43% of the retailers surveyed told that in soft drinks advertising is the key component in driving sales. While 32% stated promotional schemes and 20% brand loyalty as the reason.

As consumers are not very brand loyal where the purchase of soft drinks is concerned, the retailer push becomes a critical issue. They usually sell the product in which they get the maximum benefit. For this, the companies try to offer them higher margins.

While distributors get a margin of Rs 8-9 per crate ( 1 crate= 24 bottles) at 3-4% of MRP, retailers are given a margin of 10-12% of MRP. The retailers are not happy with this as the cost of refrigeration is very high for soft drinks. To over come this problem the companies are offering visi-coolers schemes to their main retailers.

CONSUMER HABITS
Soft drinks come under the category of products purchased in impulse. Though the markets marred by brand loyalty the purchase decision itself is a low involvement decision. This attitude of impulse buying is slowly changing to occasion-led buying and also to some extent to consumption through home refrigeration particularly in urban areas. The market is slowly moving from nonalcoholic carbonated drinks to fruit based drinks and also to plain bottled water due to lower price and ready availability. Consumers purchase soft drinks primarily to quench thirst. Therefore people traveling and not having access to hygienic water reach out for soft drink. This accounts for a large part of the sales. Brand awareness plays a crucial role in purchase decisions. To create this kind of brand awareness advertising and sales promotion become very important for the soft drink manufacturers. Various sales promotions schemes are offered to the retailers and customer. Advertisements serve the purpose of generating awareness among the customers and to some extent create desire in their mind, but sales promotion schemes offered to customer as well as retailers actually affect the sales at the point of purchase.

MAJOR PLAYERS & MARKET SHARES


The soft drink market in India is dominated by the two global majors Pepsi and Coca-Cola. Coca-Cola, which had winded up its India operations during the introduction of the FERA regime, reentered India 16 years later in1993. CocaCola acquired a major chunk of the soft drink market by buying out local brands Thumps Up, Limca and Gold Spot from Parle Beverages. Coca-Cola has also acquired Cadbury Schweppes soft drink brands Crush, Canada Dry and Sport Cola in early 1999 and now recently in Oct '00 it acquired distribution rights of these brands from IFB Agro Limited. Pepsi although started a couple of years before Coca-Cola in 1991, has a lower market share today. It has bought over Mumbai based Dukes range of soft drink brands. Both the cola manufacturers come up with their own market share figures and claim to have increased their share. Recently in August '00 Pepsi claimed to have increased its market share for first five months of calendar year 2000, to 49% from earlier levels of 47.3%,while Coke claims to have increased its share in the market to 57% in the same period from55% in the corresponding period last year. Coke figures are based on ORG's data while that of Pepsi are based on IMRB data. MARKET SHARE (IN %) Brand Name Market Share (in %) ( ORG figures) Pepsi Coca Cola 41 57 Market Share (in %) ( IMRB figures) 49 48

COMPARATIVE ANALYSIS AT A GLANCE Particulars Invented in Launched in India Innings Coca-Cola 1886 1993 2nd time, Pepsi 1890 1991 left Ist time in Indian market

India in 1977 Brands (Cola) Advertising agency Coke, ThumsUp Chaitra Burnett Previous Advertising agency McCannErickson Celebrities into advertisements Hritihik Roshan, Amitabh Bachchan, HTA Pepsi Leo HTA

Aishwarya Rai, Shahrukh Khan, Sachin Daler etc Most appealing advertisements Advertisements expenses in 2001 TV Ads outdoor ads. Marketing share ORG Rs. 75 cr. Rs. 30 cr. figures 57% 48% Rs. 40 cr. Rs. 25 cr. 41% 49% 30% 63% Mehndi, Tendulkar etc.

in (Used by Coke) IMRB figures

India overall

(Used by Pepsi)

MARKET SIZE AND GROWTH Soft drink market size for FY00 was around270mn cases (6480mn bottles). The market, which was witnessing 5-6% growth in the early90s and even slower growth at around 2-3% in late 80s. Presently the market growthhas slowed down with growth rate of 7-8% per annum compared to 22% growth rate in the previous year. The market size for FY01 is expected to be 7000 mn bottles. Year 88-89 89-90 90-91 91-92 92-93 93-94 94-95 95-96 96-97 Production (Mn bottles) 1968 2070 2195 2490 2800 3000 3240 4000 4450

97-98 98-99 99-00 2000-01(E)

4920 5670 6480 7000

MANUFACTURING PROCESS
Soft drinks may be carbonated or non-carbonated. For carbonated drinks carbonation forms a critical part of the process. In carbonation carbon dioxide is dissolved in the water, which is used in manufacturing the drink. Normally the ingredients in soft drinks are as follows-acidulant (citric, malic orphosphoric acid), sweetener, flavour and preservative. In a bottling plant, soft drink companies supply concentrates to the bottlers where it is diluted in distilled water along with other ingredients in specific proportions. The quality of this mixture is maintained through strict controls.

DISTRIBUTION NETWORK
There is no involvement of wholesalers in the distribution of products. It is more like an agent network. The companies have divided the country into various regions and established a franchisee in each region. The franchisees have their own bottling plants and manage all the day to day operations. However, of late, the soft drink companies have started setting up company owned bottling units/ have been acquiring some of its franchise bottles. ADVANTAGES AND LIMITATIONS OF FRANCHISEE NETWORKADVANTAGES

Reduced investment levels in manufacturing equipment's:

If a company sources its products from franchisees, it does not require to set up its own manufacturing plant for the purpose. The company thus benefits from reduced investments in manufacturing facilities, inventories of raw materials and other functions required for the manufacturing of the components.

Savings on management time:

As the components are out soured, the company stands to gain by saving on the management time and cost. The role of the company gets restricted to establishing the systems and in quality control at the franchise locations. Over a period of time the systems implemented stabelise and hence the involvement of the company remains on at the strategic decisions level.

Regular supply of components:

With the development of strong relations with the franchisees, the manufacturer can be assured of a regular supply of components as per the manufacturers specifications.

Reduced interfacing and dealing with labor

The labor and union employees involved in the manufacturing are the responsibility of the franchisee. This is beneficial as it reduces the management time and involvement in solving their issues. LIMITATIONS Large volumes To set up an ancillary base, the company is required to produce large volumes as the franchisee may not be interested in making large investments in the manufacturing facilities if the volumes required to be produced are low. Especially the existing franchisees will not take the risk of tying up with new players.

Financial support

In India, most vendors are small in size and do not have the capital to invest in these equipment's, which requires the manufacturers to give them the financial support. This problem becomes intense when the manufacturer has an existing franchisee base and wants to increase the capacity.

Quality

In some cases, due to cost considerations, the manufacturers are forced to compromise on quality.

PRICING The general price level : Capacity 1. 2. 3. 4. 5. 6. 7. 8. 300 ml 500 ml 1 litre 1.5 litre 2 litre Can Diet Can 500 ml (Pet on the go) Price RS 10 RS 18 RS 23 RS 43 RS 50 RS 18 RS 18 RS 18

ADVERTISING
Advertising are used to build up a long-term image for a product in order to trigger quick sales. Advertising is a efficient way to reach numerous geographically dispersed buyers at a low cost per exposure certain forms of advertising, such as TV Advertising can require a large budget, while other forms, such as of newspaper advertising can be done on small budget. Local bottlers very dominate role in advertising in their exclusive territory. The respective bottlers under the supervision of the parent company do all sales promotion activities in the exclusive territories. Different media used for advertising are Radio TV Dealer Boards Stickers Banners Newspapers Magazines Exhibition Street lighting

Out of these Dealer boards, Banners, Exhibitions, Street Lighting etc. are done by bottlers under the supervision of the company where as other forms of advertising in the mass media are conducted directly by the companies. ADVERTISING CAMPAIGN IN INDIA Pepsi and Coke have signed on various celebrities to endorse their brands. These celebrities are the icons in the minds of common people who act as brand ambassadors for particular products, and when people watch their icons do something they tend to follow. For e.g. a cricketing fan when watches Sachin Tendulker having Pepsi is more likely to drink Pepsi than any other soft drink. Coca-Cola in their stable have various celebrates from entertainment world like Hritik Roshan who endorses specially for Coca-Cola. Aishwarya Rai and Amir Khan are common names in Cokes stable which act as their brand ambassadors for various brands. Similarly Pepsi has the likes of Amitabh Bacchan, Sharukh Khan to endorse for its various products from the Bollywood and from the sports arena it has the likes of Sachin Tendulkar to endorse for its products. The great cola wars are after fought on Television. TV as a medium reaches to most of our urban population, which are the major consumers of Soft Drinks. Both the cola majors openly attack each others products in order to prove that they are better. Whenever there is a new ad on TV by any company there is a counter ad by the rival brand. And it is not just the companies which care involved the general people also eagerly await what the other are is going to do now. There have been many examples of this in the past the most recent one is the counter of Cokes Amir Khan Starrer Thanda matalab Coca Cola ad by Pepsi. In this ad coke is trying to emphasize that coca cola is the synonymous of soft drink, which is usually called Thanda in India. Pepsi countered this ad using their celebrities like Fardeen Khan and Rahul Khanna, which directly attack coke by saying

Business thanda matlab Coca cola. This type of advertising has taken the cola wars to the new heights. Pepsi has a Shah Rukh Khan starrer. Correction: a teeny bopper- starring 60seconder which has our young protagonist using his PC to create a Sholaymeets- the Midwest Pepsi claims to have based the script on the key consumer insight that teens today are taking control. Theres redefinition of the influence of celebrities and role models. The film has a sense of what Pepsi calls hey I can get there too. Less conflict, more controls. The Amrish Puri Jogging in the park commercial was about a new social equation, getting your own way without conflict. Yeli dil maange more is an expression of that state of mind. Its not about satisfying a thirst, its about making a thirst bigger. Recently both Coke and Pepsi have come out with their new Ads aiming at the generation next. In this series Aishwarya Rai, Starrer new ad as come out which shows the freedom todays youngsters want to enjoy in their lifes. With this ads Coke has actually shifted from its policy of aiming at 8-80 to definitely a younger generation , which is actually following Pepsis foots steps.

SWOT ANALYSIS OF THE AREATED DRINK INDUSTRY IN INDIA Strengths


Huge Financial Resources High degree of brand awareness and product acceptance. Effective distribution network.

Opportunities The Growing population of India

Weakness Failure to create a effective lobby to fight for their rights with the machinery. Failure to curb the activities of the unorganized sector i.e. the parallel industry. Huge advertising budgets. Failure to reduce the general price level. Failure in promoting new brands. Failure to prevent editorial criticism.

Threats The threat of new entrants & of substitutes Consumer buying power also represents a key threat in the industry. Government policies. The uncontrolled unorganized sector i.e. the parallel industry.

PEPSICO MISSION STATEMENT


PepsiCo's overall mission is to increase the value of our shareholder's investment. We do this through sales growth, cost controls and wise investment of resources. We believe our commercial success depends upon offering quality and value to our consumers and customers; providing products that are safe, wholesome, economically efficient and environmentally sound; and providing a fair return to our investors while adhering to the highest standards of integrity.

PEPSICO VISION
To be the best consumer products company. In the eyes of our suppliers customers, consumers, employees and shareholders. Establish a substantial reach advantage Establish cooling penetration advantage Establish close customer relation Establish stranglehold on key accounts. Establish clear lead in towns and villages Faith can move mountains. Besides men and machinery amongst other things.

AN OVERVIEW
INTRODUCTION PepsiCo is a world leader in convenient foods and beverages, with revenues of about $27 billion and over 143,000 employees. The company consists of the snack businesses of Frito-Lay North America and Frito-Lay International; the beverage businesses of Pepsi-Cola North America, Gatorade/Tropicana North America and PepsiCo Beverages International; and Quaker Foods North America, manufacturer and marketer of ready-to-eat cereals and other food products. PepsiCo brands are available in nearly 200 countries and territories. Many of PepsiCo's brand names are over 100-years-old, but the corporation is relatively young. PepsiCo was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay. Tropicana was acquired in 1998 and PepsiCo merged with The Quaker Oats Company, including Gatorade, in 2001. PepsiCos success is the result of superior products, high standards of performance, distinctive competitive strategies and the high integrity of our people. Our overriding objective is to increase the value of our shareholders' investment through integrated operating, investing and financing activities. Our strategy is to concentrate our resources on growing our businesses, both through internal growth and carefully selected acquisitions. Our strategy is continually fine-tuned to address the opportunities and risks of the global marketplace. The corporation's success reflects our continuing commitment to growth and a focus on those businesses where we can drive our own growth and create opportunities.

PEPSICO HEADQUARTERS PepsiCo World Headquarters is located in Purchase, New York, approximately 45 minutes from New York City. The seven-building headquarters complex was designed by Edward Durrell Stone, one of America's foremost architects. The build-ding occupies 10 acres of a 144-acre complex that includes the Donald M. Kendall Sculpture Gardens, a world acclaimed sculpture collection in a garden setting. The collection of works is focused on major twentieth century art, and features works by masters such as Auguste Rodin, Henri Laurens, Henry Moore, Alexander Calder, Alberto Giacometti, Arnaldo Pomodoro and Claes Oldenberg. The gardens were originally designed by the world famous garden planner, Russell Page, and have been extended by Franois Goffinet. The grounds are open to the public, and a visitor's booth is in operation during the spring and summer.

CORPORATE CITIZENSHIP PepsiCo believes that as a corporate citizen, it has a responsibility to contribute to the quality of life in our communities. This philosophy is put into action through support of social agencies, projects and programs. The scope of this support is extensive ranging from sponsorship of local programs and support of employee volunteer activities, to contributions of time, talent and funds to programs of national impact. Each division is responsible for its own giving program. Corporate giving is focused on giving where PepsiCo employees volunteer.

PEPSI-COLA NORTH AMERICA AND PEPSICO BEVERAGES INTERNATIONAL PepsiCos beverage business was founded at the turn of the century by Caleb Bradham, a New Bern, North Carolina druggist, who first formulated Pepsi-Cola. Today consumers spend about $33 billion on Pepsi-Cola beverages. Brand Pepsi and other Pepsi-Cola products including Diet Pepsi, Pepsi-One, Mountain Dew, Slice, Sierra Mist and Mug brands account for nearly one-third of total soft drink sales in the United States, a consumer market totaling about $60 billion. Pepsi-Cola also offers a variety of non-carbonated beverages, including Aquafina bottled water, Fruitworks and All Sport. In 1992 Pepsi-Cola formed a partnership with Thomas J. Lipton Co. Today Lipton is the biggest selling ready-to-drink tea brand in the United States. Pepsi-Cola also markets Frappuccino ready-to-drink coffee through a partnership with Starbucks. In 2001 SoBe became a part of Pepsi-Cola. SoBe manufactures and markets an innovative line of beverages including fruit blends, energy drinks, dairy-based drinks, exotic teas and other beverages with herbal ingredients. Outside the United States, Pepsi-Cola soft drink operations include the business of Seven-Up International. Pepsi-Cola beverages are available in about 160 countries and territories. Pepsi-Cola began selling its products internationally in 1934 with its operations in Canada. Operations grew rapidly beginning in the 1950s. In addition to brands marketed in the United States, major products include Mirinda and Pepsi Max. Pepsi-Cola North America includes the United States and Canada. Key international markets include Argentina, Brazil, China, India, Mexico, Philippines,

Saudi Arabia, Spain, Thailand and the United Kingdom. PepsiCo Beverages International also produces, sells and distributes Gatorade sports drinks as well as Tropicana and other juices internationally. Pepsi-Cola provides advertising, marketing, sales and promotional support to Pepsi-Cola bottlers and food service customers. This includes some of the world's best-loved and most-recognized advertising. New advertising and exciting promotions keep Pepsi-Cola brands young. The company manufactures and sells soft drink concentrate to Pepsi-Cola bottlers. The company also provides fountain beverage products.

FRITO-LAY NORTH AMERICA AND FRITO-LAY INTERNATIONAL PepsiCo's snack food operations had their start in 1932 when two separate events took place. In San Antonio, Texas, Elmer Doolin bought the recipe for an unknown food product a corn chip and started an entirely new industry. The product was Fritos brand corn chips, and his firm became the Frito Company. That same year in Nashville, Tennessee, Herman W. Lay started his own business distributing potato chips. Mr. Lay later bought the company that supplied him with product and changed its name to H.W. Lay Company. The Frito Company and H.W. Lay Company merged in 1961 to become Frito-Lay, Inc. Today, Frito-Lay brands account more than half of the U.S. snack chip industry. PepsiCo began its international snack food operations in 1966. Today, with operations in more than 40 countries, it is the leading multinational snack chip company, accounting for more than one quarter of international retail snack chip sales. Products are available in some 120 countries. Frito-Lay North America includes Canada and the United States. Major Frito-Lay International markets include Australia, Brazil, Mexico, the Netherlands, South Africa, the United Kingdom and Spain. Often Frito-Lay products are known by local names. These names include Matutano in Spain, Sabritas and Gamesa in Mexico, Elma Chips in Brazil, Walkers in the United Kingdom and others. The company markets Frito-Lay brands on a global level, and introduces unique products for local tastes. Major Frito-Lay products include Ruffles, Lay's and Doritos brands snack chips. Other major brands include Cheetos cheese flavored snacks, Tostitos tortilla chips, Santitas tortilla chips, Rold Gold pretzels and SunChips multigrain snacks. Frito-Lay also sells a variety of snack dips and cookies, nuts and crackers.

GATORADE/TROPICANA NORTH AMERICA Tropicana was founded in 1947 by Anthony Rossi as a Florida fruit packaging business. The company entered the concentrate orange juice business in 1949, registering Tropicana as a trademark. In 1954 Rossi pioneered a pasteurization process for orange juice. For the first time, consumers could enjoy the fresh taste of pure not-from-concentrate 100% Florida orange juice in a ready-to-serve package. The juice, Tropicana Pure Premium, became the companys flagship product. In 1957 the name of the company was changed to Tropicana Products, headquartered in Bradenton, Florida. The company went public in 1957, was purchased by Beatrice Foods Co. in 1978, acquired by Kohlberg Kravis & Roberts in 1986 and sold to The Seagram Company Ltd. in 1988. Seagram purchased the Dole global juice business in 1995. PepsiCo acquired Tropicana, including the Dole juice business, in August 1998. Today the Tropicana brand is available in 63 countries. Principal brands in North America are Tropicana Pure Premium, Tropicana Seasons Best, Dole Juices and Tropicana Twister. Internationally, principal brands include Tropicana Pure Premium and Dole juices along with Frui'Vita, Loza and Copella. Tropicana Pure Premium is the third largest brand of all food products sold in grocery stores in the United States. Gatorade sports drinks was acquired by the Quaker Oats Company in 1983 and became a part of PepsiCo with the merger in 2001. Gatorade is the first isotonic sports drink. Created in 1965 by researchers at the University of Florida for the school's football team, "The Gators," Gatorade is now the world's leading sport's drink.

QUAKER FOODS NORTH AMERICA

The Quaker Oats Company was formed in 1901 when several American pioneers in oat milling came together to incorporate. In Ravenna, Ohio, Henry D. Seymour and William Heston had established the Quaker Mill Company and registered the now famous trademark. Seymour wanted his product to be a symbol of honesty, integrity and strength. The figures of a man in Quaker clothes became the first registered trademark for breakfast cereal and remains the hallmark for Quaker Oats today. In Cedar Rapids, Iowa, John Stuart and his son, Robert, and their partner, George Douglas, operated the largest cereal mill of the time. Ferdinand Schumacher, known as "The Oatmeal King," had founded German Mills American Oatmeal Company in 1856. Combining The Quaker Mill Company with the Stuart and Schumacher businesses brought together the top oats milling expertise in the country as The Quaker Oats Company. The first major acquisition of the company was Aunt Jemina Mills Company in 1926, which is today the leading manufacturer of pancake mixes and syrup. In 1986, The Quaker Oats Company acquired the Golden Grain Company, producers of Rice-A-Roni. PepsiCo merged with The Quaker Oats Company in 2001. Its products still have the eminence of wholesome, good-for-you food, as envisioned by the company over a century ago.

PEPSICO PRODUCTS: PEPSICO HAS HUNDREDS OF BRANDS. THESE ARE SOME OF THE BEST KNOWN. . Frito-Lay Brands Lays potato chips Lays Bistro Gourmet potato chips Miss Vickies potato chips Outside the U.S. Gamesa cookies Dippas Sonrics sweet snacks Mirinda 7UP Pepsi Max Kas Teem Pepsi Limn Pepsi Light Gatorade Brands Gatorade thirst quencher Gatorade Frost thirst quencher Gatorade Fierce thirst quencher Gatorade Ice thirst quencher Gatorade energy bar Propel fitness water Tropicana Brands Tropicana Pure Premium Tropicana Seasons Best juices Tropicana Smoothies Tropicana Pure Tropics juices Dole juices Outside the U.S.

Lays kettle cooked potato Fandangos corn snacks chips Wavy Lays potato chips Hamkas snacks Niknaks cheese sticks

Baked Lays potato crisps Quavers potato snacks Maui Style potato crisps Ruffles potato chips Baked Ruffles potato chips Ruffles Flavor Rush potato chips Doritos tortilla chips 3Ds snacks Tostitos tortilla chips Baked Tostitos tortilla chips Santitas tortilla chips Fritos corn chips Cheetos cheese flavored snacks Rold Gold pretzels Funyuns onion flavored rings Sabritas potato chips Twisties cheese snacks Walkers potato crisps Walkers Square potato snacks Walkers French Fries potato sticks Walkers Monster Munch Corn snacks Pepsi-Cola Brands Pepsi-Cola Caffeine Free Pepsi Diet Pepsi Caffeine Free Diet Pepsi Pepsi ONE Wild Cherry Pepsi Pepsi Twist Mountain Dew

Sunchips multigrain snacks Cracker Jack candy coated popcorn Chesters popcorn Grandmas cookies Munchos potato crisps Smartfood popcorn

Diet Mountain Dew

Loza juices and nectars

Mountain Dew Code Red Copella juices Slice Mug Sierra Mist FruitWorks Lipton Brisk (Partnership) Lipton Iced Tea FruiVita juices Tropicana 100 juices Quaker Brands Quaker Oats Quaker instant oatmeal Capn Crunch cereal Life cereal Quaker Toasted Oatmeal cereal Quaker 100% Natural cereal Quaker Squares cereal Quisp cereal King Vitaman cereal Quaker Bagged cereals Quaker Ohs! Cereal Mothers cereal Quaker rice cakes Quaker Quakes rice snacks Quaker Chewy granola bars

Baken-ets fried pork skins (Partnership) Oberto meat snacks Frito-Lay dips & salsa Frito-Lay nuts Doritos, Cheetos & Dole juice drinks FruitWorks juice drinks Aquafina purified drinking water

Chesters snack crackers Frappuccino coffee Fritos, Tostitos & Doritos snack kits Outside the U.S. Bocabits wheat snacks Crujitos corn snacks beverages (Partnership) SoBe juice drinks and teas

"DOWN THE MEMORY LANE"


History & Advertising highlights

1893: Caleb Bradham, a young pharmacist from New Bern, North Carolina, begins experimenting with many different soft drink concoctions; patrons and friends sample them at his drug store fountain. 1898: One of Bradham's formulations, known as "Brad's Drink," a combination of carbonated water, sugar, vanilla, rare oils and kola nuts, is renamed "Pepsi-Cola" on Aug. 28. 1902: The instant popularity of this new drink leads Bradham to devote all of his energy to developing Pepsi-Cola into a full-fledged business and he applies for a trademark with the U.S. Patent Office in Washington, D.C. The first Pepsi-Cola Company is formed. 1903: "Doc" Bradham moves the bottling of Pepsi-Cola from his drugstore into a rented warehouse. In keeping with its origin as a pharmacist's concoction, Bradham's advertising praises his drink as "Exhilarating, Invigorating, Aids Digestion." And he sells 7,968 gallons of syrup in his first year of operation. 1904: Bradham purchases a building in New Bern known as the Bishop factory for $5,000 and moves all bottling and syrup operations to this location. Sales increase to 19,848 gallons. 1905: A new logo appears, the first change from the original created in 1898. Pepsi-Cola's first bottling franchises are established in Charlotte and Durham, North Carolina.

1906: The logo is redesigned and a new slogan is added: "The Original Pure Food Drink." The Pepsi-Cola trademark is registered in Canada. There are 15 Pepsi bottling plants in the U.S., and syrup sales reach 38,605 gallons. 1907: Pepsi-Cola Company continues to expand. The bottling network reaches 40 franchises, the trademark is registered in Mexico and syrup sales top 100,000 gallons. 1908: Pepsi-Cola becomes one of the first companies to modernize delivery from horse-drawn carts to motor vehicles. A total of 250 bottlers are now under contract in 24 states 1909: Automobile racing pioneer Barney Oldfield becomes the first celebrity to endorse Pepsi when he appears in newspaper ads describing Pepsi as "A bully drinkrefreshing, invigorating, a fine bracer before a race." The theme, "Delicious and Healthful" appears, and will be used intermittently over the next two decades. 1910: The first Pepsi-Cola bottlers' convention is held in New Bern, North Carolina 1917-18: Price controls hold sugar at 5-1/2 cents per pound during WWI. When the war ends, so do the price controls. And the price of sugar begins an upward spiral. 1920: Pepsi appeals to consumers with, "Drink Pepsi-Cola. It Will Satisfy You." The price of sugar on the New York Exchange reaches 26 cents per pound. Bradham gambles on the price going higher, and buys large stocks of sugar. By the end of the year, sugar demand slows on the open market, and the price drops to a catastrophic low of two cents per pound.

1921: The collapse of the sugar market results in enormous financial losses for Pepsi-Cola Company. Bradham attempts to put the company back on its feet by borrowing cash and selling assets and additional shares of stock. But by the end of the year, the company is insolvent, and the bottling network collapses. Only two plants remain open. 1922: An attempt at reorganization fails as few shares of stock are sold and investor interest in the new company wanes. 1923: Pepsi-Cola Company is declared bankrupt, and its assets are sold to a North Carolina concern, Craven Holding Corporation, for $30,000. 1928: After five continuous losing years, the company is reorganized as the National Pepsi-Cola Company. 1931: U.S. District Court for Eastern District Virginia declares the National PepsiCola Company bankrupt. Loft, Inc., the giant candy company, buys PepsiCola Company. 1932: The trademark is registered in Argentina. 1934: A landmark year for Pepsi-Cola. The drink is a hit, and to attract even more sales, Pepsi begins selling a 12-ounce bottle for five cents, the same price charged by its competitors for six ounces. The 12-ounce bottle debuts in Baltimore, where it is an instant success. The cost savings prove irresistible to depression-worn Americans and sales skyrocket nationally. Pepsi-Cola Company of Canada Limited is formed. Caleb Bradham, the founder of Pepsi-Cola and "Brad's Drink," dies. 1935: Pepsi-Cola operations are moved to Long Island City, New York. The company sets up national territorial boundaries for the Pepsi bottler franchise system. Compania Pepsi-Cola de Cuba is formed.

1936: Pepsi-Cola Limited of London is established. 94 new U.S. franchises are granted. Year-end profits reach $2,100,000. 1938: The trademark is registered in the Soviet Union. There are 85 Pepsi-Cola bottlers operating under franchise agreements across Canada. 1939: Having survived the Great Depression and a handful of ownership changes, Pepsi is still being sold in a 12-ounce bottle for just a nickel -twice as much refreshment as other soft drinks for the same price. A newspaper cartoon strip, "Pepsi & Pete," introduces the theme "Twice as Much for a Nickel" to increase consumer awareness of the Pepsi value advantage. Walter S. Mack Jr. is elected President of Pepsi-Cola Company. 1940: Pepsi makes advertising history with the first advertising jingle ever broadcast nationwide. "Nickel, Nickel," will eventually become a hit record and will be translated into 55 languages. A new, more modern logo is adapted. 1941: In support of America's war effort, Pepsi changes the color of its bottle crowns to red, white and blue. A Pepsi canteen in Times Square, New York, operates throughout the war, enabling more than a million families to record messages for armed services personnel overseas. Pepsi-Cola Company, until now a subsidiary of Loft Incorporate, is merged with Loft. Since the Pepsi brand name has become more famous than that of its owner, the parent company's name is changed to Pepsi-Cola Company. Pepsi's stock is traded on the New York Stock Exchange for the first time. 1943: The "Twice as Much" advertising strategy expands to includes the theme, "Bigger Drink, Better Taste." Sugar is again rationed during World War II.

To counter the effects of rationing, Mack purchases a sugar plantation in Cuba, which proves to be a highly profitable venture. 1947: International profits reach $6,769,000. Pepsi moves into the Philippines and Middle East. 1948: Pepsi-Cola's corporate headquarters moves from Long Island City, New York, to Midtown Manhattan. Pepsi is produced in cans for the first time. 1949: "Why Take Less When Pepsi's Best?" is added to "Twice as Much" advertising. 1950: "More Bounce to the Ounce" becomes the new Pepsi theme as changing soft drink economics force Pepsi to raise prices to competitive levels. Alfred N. Steele becomes President and CEO of Pepsi-Cola. His wife, Hollywood movie star Joan Crawford, is instrumental in promoting the company's product line. 1953: Americans become more weight conscious, and a new strategy based on lower caloric content of Pepsi is implemented with "The Light Refreshment" campaign. 1954: "The Light Refreshment" evolves to incorporate "Refreshing Without Filling." 1956: 149 Pepsi-Cola bottling plants are operating in 61 countries outside the U.S. 1958: Pepsi struggles to enhance its brand image. Sometimes referred to as "the kitchen cola," as a consequence of its long-time positioning as a bargain brand, Pepsi now identifies itself with young, fashionable consumers with

the "Be Sociable, Have a Pepsi" theme. A distinctive "swirl" bottle replaces the earlier straight-sided bottle. 1959: Soviet Premier Nikita Krushchev and U.S. Vice President Richard Nixon meet in the soon-to-be-famous "kitchen debate" at an international trade fair in Moscow. The meeting, over cups of Pepsi, is photo-captioned in the U.S. as "Krushchev Gets Sociable." 1961: Pepsi further refines its target audiences, recognizing the increasing importance of the younger, post-war generation. "Now It's Pepsi, For Those Who Think Young" defines youth as a state of mind as much as a chronological age, maintaining the brand's appeal to all market segments. 1963: In one of the most significant demographic events in commercial history, the post-war baby boom emerges as a social and marketplace phenomenon. Pepsi recognizes the change, and positions Pepsi as the brand belonging to the new generation -- The Pepsi Generation. "Come Alive! You're in the Pepsi Generation" makes advertising history. It is the first time a product is identified, not so much by its attributes, as by its consumers' lifestyles and attitudes. 1964: A new product, Diet Pepsi, is introduced into Pepsi-Cola advertising. 1965 PepsiCo, Inc. was founded by Donald M. Kendall, president

and Chief Executive officer of Pepsi-Cola and Herman W. Lay, Chairman and Chief Executive Officer of Frito-Lay, through the merger of the two companies. Pepsi-Cola was created in the late 1890s by Caleb Bradham, a New Bern, N.C. pharmacist.

Frito-Lay, Inc. was formed by the 1961 merger of the Frito

Company, founded by Elmer Doolin in 1932, and the H. W. Lay Company, founded by Herman W. Lay, also in 1932. Herman Lay is chairman of the Board of Directors of the new company; Donald M. Kendall is president and chief executive officer. The new company reports sales of $510 million and has

19,000 employees. MAJOR PRODUCTS

Pepsi-Cola Company -

Pepsi-Cola (formulated in 1898), Diet Pepsi (1964) and Mountain Dew (introduced by Tip Corporation in 1948).

Frito-Lay, Inc. -

Fritos brand corn chips (created by Elmer Doolin in 1932), Lay's brand potato chips (created by Herman W. Lay in 1938), Cheeotos brand cheese flavored snacks (1948), Ruffles brand potato chips (1958) and Rold Gold brand pretzels (acquired 1961). Mountain Dew launches its first campaign "Yahoo Mountain Dew ... it'll tickle your innards."

1966 Doritos brand tortilla chips are introduced. They are destined to

become the most popular snack chip in the U.S. Pepsi enters Japan and Eastern Europe.

1967 Pepsi Generation advertising,

"COME ALIVE! YOU ARE IN THE PEPSI GENERATION"


1963-67 Introduces a new theme: PepsiCo stock splits two-for-one. Campaign that named and claimed a whole generation

"TASTE THAT BEATS THE OTHERS COLD PEPSI POURS IT ON!"


1968 North American Van Lines (NAVL), a premier transportation

company, joins PepsiCo. NAVL remains a strong contributor to PepsiCo until it is divested in 1984. 1967 Bold, modern Pepsi-Cola packaging using red, white and blue is

introduced.

"YOU 'VE GOT A LOT TO LIVE, PEPSI'S GOT A LOT TO GIVE",


becomes the advertising theme. Frito-Lay introduces Funyuns brand onion flavored snacks.

Mountain Dew changes its slogan to

"GET THAT BAREFOOT FEELING' DRINKIN' MOUNTAIN DEW".


1970 PepsiCo sales pass the $1 billion mark. The company has 36,000

employees. PepsiCo moves from New York City to new world headquarters in

Purchase, N.Y. The new corporate headquarters feature a building by one of America's foremost architects, Edward Durrell Stone (19021978), set on a campus of 144 acres amid an outdoor sculpture garden. Frito-Lay begins a program of expansion. Over the next decade, the

company opens, on average, more than one new plant a year. W.C. Fritos is introduced as Frito-Lay's new advertising mascot. Wilson Sporting Goods, a top name in sports equipment, joins

PepsiCo. It is divested in 1985. Pepsi introduces the industry's first two-liter bottle. Pepsi is the first company to respond to consumer preference with

lightweight, recyclable, plastic bottles. 1971 PepsiCo Chief Executive Officer Donald M. Kendall assumes the

position of chairman of the Board of Directors on the retirement of

Herman W. Lay. Lay maintains an active role in the corporation until his death December 6, 1982. Andrall E. Pearson was appointed president of PepsiCo, a position

he held until his retirement in 1984. 1972 Mountain Dew, acquired by Pepsi-Cola in 1964, switched its

advertising and package graphics from hillbillies to action-oriented scenes. Sales climb and Mountain Dew became one of the 10 bestselling soft drinks in the United States. Don Kendall announced agreement making Pepsi-Cola the first

foreign product sold in the then U.S.S.R. PepsiCo was given exclusive rights to import Stolichnaya Russian vodka in the U.S. 1973 Foods International, later called PepsiCo Foods International (PFI)

and subsequently named Frito-Lay International, was established to market snack foods around the world. Individualism flourishes, Pepsi advertising picked up on the movement, plays it back as

"JOIN THE PEPSI PEOPLE, FEELIN'FREE",


The third Mountain Dew slogan appears

"PUT A LITTLE YAHOO IN YOUR LIFE".

1974 PepsiCo sales pass the $2 billion mark. Pepsi-Cola becomes the first American consumer product to be

produced, marketed and sold in the former Soviet Union. PepsiCo has 49,000 employees. Pepsi Light, with a distinctive lemon taste, is introduced as an

alternative to traditional diet colas.

"HELLO SUNSHINE"
becomes the slogan for Mountain Dew. 1976 The Pepsi Challenge, introduced in Dallas, Tex. in 1975, becomes

a national campaign. Around the nation, consumers select Pepsi-Cola as the best tasting cola. PepsiCo adopts Code of Worldwide Business Conduct. Pepsi-Cola becomes the single largest selling soft drink brand sold

in U.S. supermarkets. Advertising campaign is:

"HAVE A PEPSI DAY!" PUPPIES."


becomes one of America's best-loved ads. 1977

PepsiCo acquires Pizza Hut, Inc. Pizza Hut was found in

1958 by Dan and Frank Carney. It is spun off along with Taco Bell and KFC businesses as Tricon Global Restaurants, Inc. in 1997. 1978 Taco Bell is acquired. Taco Bell was established in the mid 1960s PepsiCo passes the $3 billion mark in sales. PepsiCo stock splits three-for-one.

by Glen Bell. It is spun off along with Pizza Hut and KFC businesses as Tricon Global Restaurants, Inc. in 1997. 1979 Opening of PepsiCo Research and Technical Center in

Valhalla, N.Y. PepsiCo reaches $5 billion in sales. PepsiCo's international snack food operations continue to grow. It is

now larger than Frito-Lay at the time of its merger with Pepsi-Cola. Pepsi's new campaign:

"CATCH THAT PEPSI SPIRIT!"


reflects the upbeat attitude of an increasingly positive America.

"HELLO SUNSHINE"
campaign remains basically intact, theme line is changed to

"REACH FOR THE SUN, REACH FOR MOUNTAIN DEW"


1980 PepsiCo Food Service International (PFSI) is formed to focus on Pepsi introduces twelve-pack cans.

overseas development of restaurants. PepsiCo now has 111,000 employees. First presentation of the international Donald M. Kendall Bottler-of-

the-Year Award. Frito-Lay begins nationwide roll-out of Grandma's brand cookies. Garden designer Russell Page (1906-1985) begins to extend the

gardens at PepsiCo. 1981 PepsiCo passes $7 billion in sales. Tostitos brand crispy round tortilla chips are introduced by FritoPepsi is #1 in sales in take-home market.

Lay. PepsiCo Fitness Center is completed; making PepsiCo one of the

most advanced companies in the area of employee health and fitness. Frito-Lay begins nutritional labeling on a national basis.

"PEPSI'S GPOT YOUR TASTE FOR LIFE!"

was the new campaign. s PepsiCo and China reached an agreement to manufacture soft

drinks, with production beginning in 1982. PepsiCo launched PepsiCo Food Systems (PFS), its restaurant

supply company. PFS was sold to AmeriServe in 1997. 1982 Pepsi Free and Diet Pepsi Free, the first major brand caffeine-free

colas, are introduced. 1983 The Bottler Hall of Fame is established to recognize the Inauguration of the first Pepsi-Cola operation in China.

achievement and dedication of international bottlers. 1984 PepsiCo is restructured to focus on its three core businesses: soft

drinks, snack foods and restaurants. Transportation and sporting goods businesses are sold. Wayne Calloway becomes president of PepsiCo. Diet Pepsi is reformulated with 100% NutraSweet.

Slice and Diet Slice, the first major soft drinks with fruit juice, are introduced.

Pepsi-Cola makes advertising history as Michael Jackson and his

brothers usher in a new generation of Pepsi-Cola advertising in two of the most eagerly-awaited television commercials featuring music marketing. Pepsi becomes "The Choice of a New Generation." Herman W. Lay Award of Excellence established at Frito-Lay to

recognize world-class selling excellence. 1985 PepsiCo is now the largest company in the beverage industry. The

company has revenues of more than $7.5 billion, more than 137,000 employees. Pepsi-Cola products are available in nearly 150 countries and

territories around the world. Snack food operations are in 10 international markets. Frito-Lay expands into new headquarters in Plano, Tex. PepsiCo's first line of sweet snacks, Sonrics, is added in Mexico. The cola war takes "one giant sip for mankind," when a Pepsi

"space can" is successfully tested aboard the space shuttle. Pepsi's successful "Entertainment Marketing" strategy is extended,

with singers Lionel Richie and Tina Turner and actor Michael J. Fox, among others. 1986 Pepsi distributes products in China.

Wayne Calloway becomes chairman of the Board of Directors and

chief executive officer in May when Donald M. Kendall retires. The corporation is reorganized and decentralized. Beverage

operations are combined under PepsiCo Worldwide Beverages; snack food operations are combined under PepsiCo Worldwide Foods. Shareholders approve reincorporating of PepsiCo in North Carolina. PepsiCo stock splits three-for-one. PepsiCo purchases Kentucky Fried Chicken, the leader in the quick

service chicken market. Colonel Harland Sanders founded KFC. Colonel Sanders began franchising the company in 1952. KFC is spun off along with Pizza Hut and Taco Bell businesses as Tricon Global Restaurants, Inc. in 1997. PepsiCo purchases 7-Up International, the third largest franchise

soft drink operation outside the United States. PepsiCo passes $10 billion in sales. PepsiCo is listed on the Tokyo stock exchange. Chester Cheetah makes his prime-time television debut for Frito-

Lay with a fully animated commercial for Cheeotos cheese flavored snacks. "Dew it Country Cool, " becomes new slogan for Mountain Dew.

Michael Jackson is signed to a second contract to appear in Pepsi advertising, this time as a solo performer. Diet Pepsi's "Apartment

10G," starring Michael J. Fox, is the commercial of the year and an instant classic. Diet Pepsi gets a new logo.

Get the logo Pepsi-Cola acquires Mug Root Beer. Pepsi-Cola sponsors the first Western-produced consumer

commercial in the Soviet Union, appearing during the Goodwill Games. PepsiCo Board of Directors visits the People's Republic of China to

mark the opening Pepsi's second bottling plant in China. Frito-Lay introduces Santitas brand restaurant style tortilla chips.

1987 Pepsi-Cola Company moves to new headquarters in Somers, N.Y. "Mustang," a Diet Pepsi commercial, becomes the first ad ever to

appear in a home video cassette. The cassette, "Top Gun," becomes the largest-selling video ever. Pepsi sponsors tours of major music stars, including Miami Sound

Machine, David Bowie and Tina Turner. Frito-Lay pioneers the use of hand-held computers for marketing. 1988 Pepsi-Cola Company is reorganized along geographic lines - East,

West, South and Central regions - each with its own president and senior management staff.

Pepsi-Cola International enters a landmark joint venture agreement

in India. Renewed accord with the Soviet Union extends PepsiCo trade

relationships. Hostess Frito-Lay, a major new partnership in Canada, is formed

with Hostess Foods in Canada. "Chase," a four-part Pepsi ad featuring Michael Jackson in his first-

ever episodic commercial, airs during the Grammy awards and becomes the most-watched commercial in advertising history. Pepsi-Cola runs first paid advertisement on Soviet TV during

"Pozner in America," a joint US-Soviet production. Worldwide retails sales of Doritos brand tortilla chips hit $1 billion. It

is the world's largest selling snack chips brand. Pepsi and Michael Jackson raise $600,000 with a special New York

City concert benefiting the United Negro College Fund. 1989 PepsiCo introduces SharePower Stock Option program for all

employees, becoming the first large corporation to award stock options to virtually all full-time employees. PepsiCo acquires Walkers Crisps and Smith Crisps, two of the

United Kingdom's leading snack food companies. PepsiCo acquires Smartfood ready-to-eat popcorn business.

PepsiCo named one of Fortune Magazines top 10 "Most Admired

Corporations." Frito-Lay is decentralized and reorganized along geographical lines.

1990 PepsiCo enters top 25 of Fortune 500 ranking with sales of $15.4 billion, it is number 23. The company has more than 300,000 employees. PepsiCo stock splits three-for-one. PepsiCo named one of Fortune Magazine's top 10 "Most Admired

Corporations" for the second year in a row. PepsiCo acquires a controlling interest in Gamesa, Mexico's largest

cookie company. Frito-Lay introduces its Light line of low-oil snacks. Frito-Lay advertising for Doritos brand tortilla chips features talk

celebrity Jay Leno. Popular teen stars Fred Savage and Kirk Cameron appear in Pepsi

advertising, while Ray Charles, joins Diet Pepsi vets Billy Crystal and Michael J. Fox in "The Right Ones" campaign. During the SuperBowl, star quarterback Joe Montana offers a special taste challenge to celebrities appearing in competitive commercials. PepsiCo signs the largest commercial trade agreement in history

with the Soviet Union, expecting sales in the U.S.S.R. to double by the end of the century. 1991

Profits exceed $1 billion for the first time. PepsiCo named one of Fortune Magazine's top 10 "Most Admired

Corporations" for the third year in a row. PepsiCo acquires an equity interest in Wedel SA, the leading

manufacturer of chocolate and confectionery in Poland. The new joint venture will be a entrance into the Eastern European snack market. Snacks now include operations in 23 countries. Pepsi-Cola introduces a new logo, its eighth in 93 years.

Advertising features rap singer MC Hammer. Pepsi-Cola forms joint venture with Thomas J. Lipton Co. to

develop and market tea-based drinks. Frito-Lay launches Sunchips, its first multigrain snack. Frito-Lay introduces Cheeotos Paws. Frito-Lay introduces Tostitos brand Restaurant-Style tortilla chips. Ray Charles teams up with the Uh-Huh Girls. The slogan for Diet

Pepsi is modified to "You Got The Right One Baby, Uh-Huh!" 1992 PepsiCo named one of Fortune Magazine's top 10 "Most Admired

Corporations" for the fourth year in a row. PepsiCo purchases an equity position in Carts of Colorado, Inc., the manufacturer and marketer of mobile merchandising

leading

equipment. It is sold in 1995.

PepsiCo purchases an equity interest in California Pizza Kitchen. It

is sold in 1997. Pepsi-Cola starts distributing Ocean Spray Cranberries, Inc. single

serve juice products. Pepsi-Cola introduces new "Gotta Have It" advertising theme and

launches the "Gotta Have It" card. Pepsi-Cola implements the "Right Side Up" philosophy; where the

customer and front line employees are at the top of the organization. Frito-Lay and General Mills agree to merge snack food businesses

in Europe. Frito-Lay introduces reformulation of Doritos brand Nacho Cheesier

flavored tortilla chips. Frito-Lay presents network Lay's/Ruffles advertising -- the first in 10

years. 1993 Pepsi." Pepsi-Cola begins distribution of Lipton's line of ready-to-drink teas Pepsi introduces new slogan "Be Young - Have Fun - Drink Frito-Lay enlists George Foreman for Doritos advertising.

nationwide. Frito-Lay launches new Doritos brand Tortilla Thins. Within five

months of launch, Tortilla Thins breaks into the ranks of the 10 largest-

selling snack chips in the U.S.,TWA, Northwest Airlines offer PepsiCola. After a 27-year absence, Pepsi returns to Broadway with the

lighting of a spectacular new neon sign in Times Square. Both PepsiCo beverages and snack food operating profits pass

the$1billion mark. Pepsi-Cola introduces freshness dating. Pepsi-Cola begins test marketing of Ocean Spray Lemonade and

Ocean Spray Splash, a fruit sparkler. Frito-Lay introduces Baked Tostitos brand Tortilla Chips. Pepsi introduces "The Cube," an innovative 24-can multipack, that

satisfies growing consumer demand for convenient large size soft drink packaging. PepsiCo acquires East Side Mario's Restaurants Inc. It sells the 40

units in 1997. PepsiCo acquires D'Angelo Sandwich Shops chain, which is sold in

1997. Pepsi-Cola International introduces Pepsi Max, a soft drink with

unique blend of sweeteners that delivers maximum cola taste in a nosugar product. 1994

Frito-Lay nationally launches Wavy Lay's Original and Au

Gratin flavors. Pepsi-Cola introduces Aquafina bottled water into test market. Pepsi-Cola is first major soft drink maker to begin producing and

distributing its product in Vietnam. Pepsi-Cola launches its sports drink All Sport and a national

advertising campaign with basketball great Shaquille O'Neal. Pepsi-Cola International acquires Indian company, its first big

bottling plant in Bombay. Doritos is introduced to the United Kingdom, marking the creation of

a new "global brand." Frito-Lay and K.C. Masterpiece Original Brand Barbecue Sauce

launches Lay's Masterpiece brand Barbecue Flavor Potato Chips, marking the first time Lay's has entered into a co-branding agreement. PepsiCo and Starbucks form the North American Coffee

Partnership to jointly develop ready-to-drink coffee beverages. Pepsi-Cola licenses the Citrus Hill trademark from The Procter &

Gamble Co. to launch a line of fountain juices and drinks. China gets cheese-less Cheeotos, the first time a major snack-food

brand will be produced in China for Chinese tastes. Reba McEntire becomes first celebrity to appear nationally on a

Frito-Lay package.

Frito-Lay nationally launches new baked Rold Gold Fat Free Thins

Pretzels, the first fat free reduced sodium pretzel introduced by the company.

1995 Wake Forest University names its School of Business and

Accountancy in honor of Wayne Calloway. PepsiCo sales reach $30.4 billion. There are 470,000 employees

worldwide, making PepsiCo the third largest employer. Pepsi-Cola introduces "Nothing else is a Pepsi" themeline. Pepsi-Cola is top ad scorer in SuperBowl. Mountain Dew sponsors the Grammy Awards. Themeline is "Been

There, Done That, Tried That." The Pepsi Lipton Tea Partnership debuts new ad campaign

emphasizing "There's only one Original." Pepsi-Cola introduces Smooth Moos Smoothies, a line of low-fat

dairy shakes. 7Up International launches 7UP Ice Cola, a new clear cola. Pepsi-Cola International and Kraft Foods International jointly

announce the formation of "Maxwell House Beverage Company." The new company will market ready-to-drink canned coffee in Asia. Tennis superstar Andre Agassi will promote Pepsi Max

internationally and Mountain Dew in the U.S. The North American Coffee Partnership between Pepsi-Cola

Company and Starbucks Coffee Company introduces Mazagran carbonated coffee beverage into test market.

In France, Pepsi introduces a line of non-carbonated fruit-based

beverages called "The Radical Fruit Company." Frito-Lay aggressively expands its low/no-fat snack segment.

Baked Lays is introduced. Frito-Lay tests Baked Tostitos, Rold Gold Fat Free Pretzels, Ruffles

Reduced Fat Potato Chips and Tostitos fat-free salsas and black bean dip brands. Campaign line is "Taste the fun, not the fat." Frito-Lay and Sara Lee Bakery announce alliance to develop,

manufacture and distribute baked goods. The single-serve products will carry the Sara Lee name and be distributed by Frito-Lay. Frito-Lay launches World Wide Web site: http://www.fritolay.com. PepsiCo will introduce Lay's brand potato chips in 20 markets

throughout the world. 1996 officer. "Pepsi Stuff" unveiled.Consumers save points for merchandise. PepsiCo stocks splits two-for-one. Pepsi-Cola domestic and international operations combined into Company. International and domestic snack food Roger Enrico succeeds Wayne Calloway as chief executive

Pepsi-Cola

operations combined into one business unit called Frito-Lay Company.

Mountain Dew launches a massive beeper network called "The

Mountain Dew Extreme Network." PepsiCo, Inc. and Lucasfilm Ltd. announce the largest promotional alliance in entertainment history, linking existing and future Star Wars series with PepsiCo beverage, snack foods and restaurant brands worldwide. Pepsi-Cola and MTV establish a partnership to develop

international programming, cross promotions, marketing tie-ins and special events. Filming of the world's first commercial in space. Cosmonauts shoot

a large blue Pepsi can in orbit outside the MIR Space station. Pepsi-Cola is exclusive soft drink supplier to Canadian Airlines.

Pepsi is at Marriott Hotels as well. International retail sales of Doritos brand tortilla chips exceed $250

million, global expansion nears 20 countries. Frito-Lay announces national launch of Reduced Fat Doritos brand

Tortilla Chips. 1997 PepsiCo announces plans to spin off its restaurant businesses as an independent publicly-traded company, sell its food distribution company and focus on its core beverage and snack food businesses. The spin-off is completed October 6, 1997. Shareholders receive one share in the new restaurant company, Tricon Global Restaurants, Inc., for every 10 shares they hold in PepsiCo, Inc. PepsiCo is now a $20 billion company with approximately 140,000

employees worldwide. Pepsi-Cola introduces new advertising campaign with the theme "Generation Next." Pepsi-Cola North American bottling operations become a separate unit called The Pepsi-Cola Bottling Co. National roll-out of Aquafina bottled water. Frito-Lay announces plans to buy the 104-year-old snack, Cracker Jack, a candy-coated mix of popcorn and peanuts from Borden Foods Corp. 1998 Pepsi-Cola celebrates 100th Anniversary with first worldwide bottlers conference, held in Hawaii. The event is held during the same time as first bottlers conference. Frito-Lay introduces Doritos 3Ds Tortilla Chips, a triangle-shaped chip. Pepsi-Cola introduces two-liter plastic bottle with built-in "grip handle" that makes it easier to grip and pour." PepsiCo Chairman and CEO Roger A. Enrico donates his salary to provide scholarships for children of PepsiCo employees. NAICs annual top 100 stock survey of Americas investment clubs shows PepsiCo, Inc. as the most popular stock for 1998. Pepsi introduces new look called the "Globe" which prominently features a 3-dimensional Globe against a blue ice backdrop. PepsiCo is named by the Council of Economic Priorities (CEP) to its honor roll of socially responsible companies. Pepsi-Cola announces breakthrough product: Pepsi One, greattasting, one-calorie cola is first in United States with newly FDA approved sweetener Sunett. Former Chairman and CEO Wayne Calloway dies on July 9th. He

joined PepsiCo in 1967. PepsiCo acquires Tropicana Products from Seagram Company Ltd., the biggest acquisition ever undertaken by PepsiCo. Tropicana was founded in 1947 by Anthony Rossi. Its major brand is Tropicana Pure Premium Juices. The Frito-Lay Company purchases Smiths Snackfood Company in Australia from United Biscuits Holdings, Inc. (Purchase completed on Aug. 26.) In November the PepsiCo Board of Directors authorizes the company to convert a significant portion of its $7 billion company-owned bottling operations, The Pepsi Bottling Group (PBG) into public ownership. PepiCo signs groundbreaking 10-year agreement with the YMCA of the USA through which both Pepsi-Cola and Frito-Lay will develop national and local marketing programs to support the organizations many charitable efforts. Frito-Lay becomes the snack chip leader in South and Central America as it enters a joint venture with Empreseas Polar SA of Venezuela. Frito-Lay acquires Barcel, Chiles second-largest snack company. Frito-Lay acquires an expanded state in Tasty Foods Egypt. Pepsi and Frito-Lay media buying is consolidated. PepsiCo products contribute more than any other packaged goods company to the sales growth in U.S. supermarkets, mass

merchandisers and chain drug stores. 1999 In March The Pepsi Bottling Group, the worlds largest Pepsi bottler, begins trading on the New York Stock exchange. It is listed under the symbol PBG. The $2.3 billion public offering is among the biggest initial public offerings in stock market history.

Tropicana Products, Inc. acquires Alimentos del Valle S.A., one of Spains leading chilled juice and soup companies. Tropicana introduces two new calcium-fortified Pure Premium juices: Pure Premium Grovestand Calcium and Pure Premium Ruby Red Grapefruit Calcium. Pepsi launches "The Joy of Cola" advertising campaign. Steve Reinemund named president of PepsiCo. Hallie Eisenberg "Joy of Cola" commercials named #6 of "Fifty Greatest TV commercials of all time," by TV Guide. Lipton introduces Iced Tea Green Tea with Honey and Diet Peach. PepsiCo and Suntory Limited signed an agreement to create a joint venture linking bottling networks in North Carolina and New York. The new company, Pepsi Bottling Ventures, will be the third largest bottler in the Pepsi system. Tropicana juices are entering the huge India market for the first time. Spearheaded by Tropicana Asia Pacific, orange juice will appear in the New Delhi and Bangalore markets. PepsiCo named to FORTUNE Magazines list of "The Fifty best companies for Asians, Blacks and Hispanics." Frito-Lay introduces a new corporate logo. Westchester Arts Council honors PepsiCo for "Outstanding

contributions to the arts and the community." Frito-Lay signs agreement with Oberto Sausage to be the exclusive distributor of the natural-style jerky. Worth Magazine names PepsiCo to its "Most Generous Companies" list. 2000 Pepsi-Cola Co. launches new beverage line, FruitWorks, a five flavor

line of fruit drinks. Tropicanas Pure Premium Multivitamin juice voted "Best Product of the Year " in the Total Soft Drink and Juice category in France. Hallie Eisenberg, star of Pepsi commercials, receives Young Artist Special Achievement Award. Pepsi-Cola revives its "Pepsi Challenge" advertising campaign. Challenge includes Pepsi One and Diet Coke as well as regular cola. Pepsi-Cola teams up with Yahoo Inc., the biggest web navigation company, in a multimedia marketing campaign aimed at teens and young adults. Liptons Iced Tea and Lipton Brisk sign three-year deal to become "Official Iced Tea of the PGA Tour." Mountain Dew debuts new Spanish language commercial, "Arcade." Tropicana, in a joint venture with Galaxy Foods Co., will introduce an icy smoothie soy milk-and-fruit drink, made with juice, fruit puree along with soymilk and soy protein. Pepsi and Warner Music introduce "Choose Your Music" promotion. PepsiCo, Inc. renewed agreement to sell Pepsi-Cola, Mountain Dew and other Pepsi beverages at Tricon Global Restaurants Inc.s US locations for 12 years. Aquafina brand bottled water becomes the best-selling brand of singleserve bottled water in US retail channels. Pepsi donates $100,000 to Michael J. Fox Foundation for Parkinsons Research. The actor has appeared in the Award Winning Diet Pepsi commercial "Apartment 10G." The PepsiCo Foundation has endowed a $200,000 fellowship fund at Harvard in the name of the late Pepsi-Cola executive Naylor Fitzhugh.

FORTUNE magazine names PepsiCo one of Americas "50 Best Companies for Minorities." PepsiCo presents Leadership gift of $500,000 to Urban League Breakthrough! Campaign. PepsiStuff.com, a web site for merchandise, discounts and digital music files from biggest names in movies, music, video games, apparel and sports is launched in joint promotion with Yahoo. Global Finance magazine names PepsiCo to its list of The Worlds Best Global Companies. Pepsi teams up with Yahoo! in a Spanish back-to-school contest called "Tu Sabor, Tu Futuro" ("Your Taste, Your Future"). Nationwide contest offers opportunities to win $10,000 college scholarships. Minority MBA magazine names PepsiCo one of "Ten Top Companies for Minority MBAs". Dawn Hudson, senior vice-president, strategy and marketing for PepsiCola North America, ranked among 50 most powerful people in marketing by Ad Age. Pepsi-Cola launches "Sierra Mist" a caffeine-free, lemon/lime soda. FORTUNE magazine names Indra Nooyi, PepsiCo Inc.s CFO as one of "The 50 Most Powerful Women in Business." The North American Coffee Partnership launched Caramel-flavored bottled Frappuccino Coffee Drink the sixth flavor addition to its popular line of ready-to-drink coffee. PepsiCo, Inc. reaches agreement to acquire a majority stake in South Beach Beverage Company, whose highly innovative SoBe brand has made it one of industrys most successful companies. Pepsi-Cola Co.s program to assist music education in schools, called

"Share the Joy with Music," is in stores nationwide. PepsiCo announces $4 billion share repurchase program. PepsiCo, Inc. and The Quaker Oats Company reached an agreement to merge. PepsiCo, Inc. rescinds share repurchase program. 2001 PepsiCo completes the acquisition of a majority stake in South Beach Beverage Co. PepsiCo announces a new joint venture will be formed in Egypt combining the salty snack operations of Chipsy, the current market leader, and Tasty Foods, which is owned by PepsiCo. PepsiCo launches Diversity@work, http://www.pepsico.com/diversity web site. Pepsi-Cola Company launches Dole single-serve juices in vending machines, coolers and other retail outlets throughout the United States. Mountain Dew announces a multiyear agreement with Evernham Motorsports to sponsor the crew of Atwood #19 Dodge Dealers Intrepid R/T race team on the 2001 NASCAR Winston Cup circuit. Pepsi-Colas flagship brand will have new tagline, "The Joy of Pepsi." Pepsi-Cola announces a multi-year agreement with Britney Spears as part of the "Joy of Pepsi" campaign. Pepsi will also co-sponsor Spears upcoming worldwide concert tour. Tropicana celebrates a company milestone 300 billion fresh oranges squeezed since the company began making countrys first ever massdistributed, not-from-concentrate juice in 1947. The first Winston Cup race at NASCARs newest track, the Chicagoland Speedway will be the Tropicana 400 on July 15.

Frito-Lay announces the launch of Cheetos Mystery Colorz Snacks, a cheesy new Cheetos product that magically turns color in your mouth. Tropicana introduces Smoothies. A natural juice-based product, smoothies combine fruit juices and non-fat yogurt into a smooth, filling drink that delivers nutrition, taste and convenience. Planned merger of PepsiCo and Quaker gets European Commission clearance. On April 7, World Health Day, Tropicana sponsors The Tropicana Health Run in New Delhi, India, a benchmark event that drew 10,000 promising athletes and raised funds to fight AIDS. Pepsi-Cola Company has signed an exclusive licensing agreement with AmeriCoGroup to create new lines of apparel, footwear and accessories for the Pepsi and Mountain Dew brands in the United States and Canada. The launches are scheduled for the spring 2002 fashion season. May 1- Pepsi-Cola launches the bold new Mountain Dew Code Red nationwide. It is Mountain Dews first line extension since the introduction of Diet Mountain Dew in 1988. PepsiCo is a sponsor of the Keep America Beautiful annual Great American Cleanup. The company provides posters with image of Iron Eyes Cody, the "Crying Indian." May 1 -PepsiCo shareholders overwhelmingly approve plan to merge with The Quaker Oats Company. May 2 The Board of Directors of PepsiCo, Inc. elected Steven S Reinemund chairman of the board and chief executive officer, succeeding Roger Enrico who will become vice chairman. The board also elected Indra K. Nooyi as a director and gave her the additional

title of president of PepsiCo in addition to CFO. Frito-Lay introduces Lays Bistro Bistro Gourmet potato chips. Pepsi-Cola Company introduces a "Pepsi Twist." Regular and diet versions of the crisp new cola with lemon are entering retail outlets in selected U.S. markets. Tropicana Smoothies, a juice and yogurt drink, debut in test markets. PepsiCo moves up Fortunes List of Best Companies for Minorities to #13. SLAM, the orange brand Mirinda, is launched in Italy. PepsiCo acquires Tasali Foods, Saudi Arabias leading snack company. On August 2, PepsiCo completes its merger with The Quaker Oats Company, creating a $25 billion food and beverage company focused on the rapidly growing consumer demand for convenience. PepsiCo introduces a new corporate logo. Following the September 11 tragic events of terrorist attacks, the PepsiCo Foundation donates $5 million in support of relief efforts. Tropicana Pure Premium Low Acid orange juice makes official debut at Tropicana 400. Diet Sierra Mist is introduced. Pepsi kicks off online marketing with Yahoo. Soon after, Adweek Names Pepsis Premier of Britneys As on Yahoo! Best Online Event of 2001. PepsiCo wins the first mulitcultural awards competition held by the Association of National Advertisers. DiversityInc.com says Pepsi beats Coke in Diversity Cola Wars. Pepsi-Cola introduces Credit Card Vending.

2002 Forbes names PepsiCo one of the Platinum 400, "The Best Big Companies in America." Frito-Lay introduces Go Snacks, canisters that truly go anywhere. Gatorade introduces new Gatorade ICE subline in three flavorsOrange, Lime and Strawberry. Tropicana Pure Premium announces sponsorship of Disney's awardwinning show The Lion King.

PEPSICO ENVIRONMENTAL COMMITMENT


PepsiCo, Inc. serves consumers in two major businesses: beverages and snack foods. The company consists of Pepsi-Cola Company, the world's second largest beverage company, Tropicana Products, Inc. the world's largest marketer and producer of branded juices and Frito-Lay Company, the world's largest manufacturer and distributor of snack chips. PepsiCo brand names are among the best known and our operations reach every corner of the world. As a consumer products company, PepsiCo does not have the major environmental problems of heavy industry. Our biggest environ-mental challenge is packaging generated by our products. Packaging is important to public health and a critical component of the distribution system that delivers products to consumers and commercial establishments. To meet both consumer demand and safeguard the environment, we recycle, reuse and reduce packaging wherever possible. Each business is also committed to responsible use of resources required in manufacturing our products.

PepsiCo is proud of our environmental record. Each of our divisions and facilities is empowered to find solutions to its unique environ-mental challenges. This report addresses the environmental principles presented in our Code of Conduct and examines our progress.

CHANNEL MANAGEMENT
Pepsi has a very well managed distributive system. It is said that Pepsi dont have bottlers, it has partners. Pepsi has a well alligned-bottling network. It operates through COBO (Company owned bottling operations) and FOBO (Franchise owned Bottling operations). It is this way in which Pepsi Co. India Strengthens its marketing that gives it an edge. Every number of its sales team is meticulously taught the merchandising and display skills that can leverage the reach of the companys bottling network to achieve high visibility for the product. SELLING PROCESS Pepsi has a very well managed selling system. It takes as lot of care to ensure that the products (Pepsi bottles) are available to the consumers. Pepsi soft drink are produced in our plants and crates are supplier to shopkeepers directly. Noida has been divided around 15 routes which are called direct routes. For every route there is a Routs Agent. Route Agent moves with the company owned truck and ensure that maximum shops are covered each day, so that regular supply of Pepsi soft drinks is made. Routs agents take the order from the shopkeepers and then with the help of loaders they give the required number of crates to the Crates from the outlet and then they move for the next outlet. Our plants also have some agency in each routs. They supply in the areas where Pepsis trucks are not able to reach. These areas are called indirect-routes.

EMPOWERMENT One of the strongest weapon in the Pepsis armoury is the flexibility it has empowered its people with. Every manager and sales person has the authorities to take whatever steps he feels will make consumer aware of the brand and increase its consumption. MANUFACTURING PROCESS Pop! Fizz. Ah-h! It happens millions of times a day, every day. That feeling of thirst hits, someone opens a Pepsi and the magic begins. Cold. Effervescent. Delicious. Each time, every time. Of course, that's what you expect from a great product like Pepsi-Cola. Or from Diet Pepsi, Mountain Dew or any of our other popular soft drinks and other beverages. But how do we do it? How can the people at Pepsi be sure that every single bottle and can of Pepsi-Cola is always great-tasting, sparkling and fresh? Actually, there's no secret to how to make Pepsi (except for the recipe). But there is a system. And that system, plus a lot of hard work, is what enables Pepsi-Cola and the independent Pepsi-Cola bottlers all around the world to bring you that high-quality, consistently refreshing Pepsi taste each time you open one of our products. The system starts with the finest ingredients available -- kola nuts, vanilla beans, flavor oils, citrus, sweeteners and the purest waters we can distill. Then we add the best technology and all the care we can muster to blend our ingredients.

And during the 100-plus years we've been making soft drinks, we've also created our own exacting production and quality standards, monitored with constant testing to guarantee quality and consistency in our products. Finally, we have our own local distribution system. It's designed to make sure that the Pepsi you open at home is as fresh and delicious as it was when we sealed it at our plant. And it serves every city and town in the United States. Complicated? For sure. And expensive, too. But there's no other way we can be certain that Pepsi-Cola products you buy are the highest quality, best value products we can make. Now, here's what all of those steps look like: Flavor concentrates are shipped from special Pepsi-Cola manufacturing plants in heavy-duty, air-tight containers. Liquid sweeteners are transported in special tanker trucks. All ingredients and food products are stored in clean, sanitary areas, and items requiring refrigeration are kept in temperature-controlled areas. The bottles and cans that will eventually be filled with Pepsi are manufactured elsewhere, and shipped to Pepsi plants wrapped and sealed for protection. Labels, cartons, caps, the carbon dioxide used to carbonate soft drinks and other supplies are also produced for Pepsi by other companies. On arrival, everything is subject to careful inspection to make certain all of the ingredients and materials meet Pepsi's high standards. Special equipment is used to uncase and depalletize incoming shipments of bottles and cans. Cans are by far the most popular package with consumers because they're lightweight and easy to store. Though bulky, the cartons and pallets on which the empty packages arrive are also relatively light in weight, so it's easy for the machines to automatically remove the cans from their shipping

containers at high speed. The machines then transfer the individual packages to a conveyor belt. Once on the belt, cans are part of an enclosed, controlled environment that keeps them sanitary and helps ensure quality throughout the filling process. They travel rapidly through a printer that applies a production code to each can. Then they're automatically turned upside down, and rinsed thoroughly with filtered water before proceeding directly to the filter. Water is a key ingredient in all soft drinks. Pepsi-Cola takes special care to purify the water it uses -- a procedure that involves careful treatment, filtration and purification. Pepsi standards are precise and closely monitored at every step of the process. The result of this kind of painstaking attention to detail is that the water used in Pepsi-Cola and all of our beverages is among the purest available anywhere. Pepsi-Cola flavor concentrate is carefully combined with sweeteners and other ingredients in large stainless steel mixing tanks. Quality control audits performed by specially trained technicians are a critical part of the manufacturing sequence for each batch, and are typical of the attention to detail that's necessary if the highest possible quality standards are to be maintained. Cleanliness is also vital, so all internal and external surfaces of the production system, including syrup lines, proportioning, cooling and carbonating equipment, are meticulously sanitized. In the last step of the manufacturing process, as the now-rinsed cans reach the filler, they're reinverted, immediately filled and the lid is applied -- at an average speed of 1,200 cans per minute. The filler is where the syrups from the mixing tanks are combined with the purified water from the filtration process. The liquid

is then carbonated. This carbonation process gives soft drinks the special sparkle -- fizzy bubbles -- that adds to their quality of refreshment. All Pepsi cans and bottles are imprinted with a freshness date, which is a date code that tells you your soft drink is fresh. A final quality check ensures that the package is properly filled, sealed and labeled. As products leave the manufacturing line, they're combined into a variety of packages -- six- or 12-packs, 24- or 30-can cases or cases of individual two-liter bottles. The finished packages are stacked on shipping pallets and moved to temporary holding areas or to a central warehouse for shipping. The storage is purely temporary, since freshness is an important part of delivering the best possible product to our consumers. Some of our products will be quickly transported by large trucks to outlying districts and towns. Most, however, are loaded into Pepsi-Cola delivery trucks you see calling on food stores in your own neighborhood. Other trucks deliver Pepsi-Cola syrup to restaurants and fountains. To make sure there's always enough Pepsi for everyone who wants one, our trucks are on the road every single day. Many individual stores actually receive deliveries several times per week -- a big reason why the Pepsi products you buy and use are always fresh and great tasting. PACKAGING Providing our consumers with easy-to-use, convenient and innovative containers is one of our top priorities. Package introductions we've made over the years include the industry's first two-liter bottle; the first company to respond to consumer preference with lightweight, recyclable, plastic bottles; The Cube, an easy-to-store 24-pack; Big Slam, the wide-mouth one-liter bottle; as well as our three-liter bottle, designed to provide consumers with extra value (not all products and packaging is available in all markets).

Our local bottlers, many of which are privately owned, franchise operations, make all packaging decisions. Most of our bottlers are following the industry-wide trend to use plastic packaging due to environmental considerations. The industry is now making greater use of fully recyclable aluminum cans and PET plastic bottles. More information on Pepsi-Cola's environmental commitment, including its packaging initiatives, can be found here. The "CUBE" is Pepsi's new innovative 24-can multipack. It was dubbed the "CUBE" by consumer focus groups, which are a small test market population that's invited by Pepsi-Cola to give the company feedback before the introduction of a new package or product. The consumer focus groups Pepsi used for this product coined the name the "CUBE" and it stuck! Polyethylene terephthalate, or "PET plastic," is a form of polyester used to make strong, lightweight, shatter-resistant bottles for soft drinks, water, juice and other non-food products. Bottles made from PET plastic, which are marked with the number one code on the or near the bottle of the bottle, are recyclable into products including new containers, fiberfill for sleeping bags and coats, fabric, carpet, auto parts, film and more.

PRICING Pricing of bottles : Capacity 1. 2. 3. 4. 5. 8. 9. 8. 300 ml 500 ml 1 litre 1.5 litre 2 litre Pepsi Can Pepsi Diet Can 500 ml (Pet on the go) Price RS 10 RS 18 RS 23 RS 43 RS 50 RS 18 RS 18 RS 18

COMPANY PROFILE
The R.K. Jaipuria (RKJ) Group is an established group with diversified interests in foods beverages. Thoroughly experienced in setting up and running PEPSI Bottling Plants in India. Mr. Ravi Jaipuria was adjudged Best Pepsi Bottler of the world for the year 1998. He was presented with the Donald M. Kendall Bottler of then year award, the highest honour to any franchisee, incidentally only India in the last 100 years. He has over 2 decades experience in the food and beverages industry. Flagship companies of the group are involved in the manufacture of Pepsi beverages with a decent track of growth and profitability. The plants are located at Greater Noida, Jaipur, Kosi, Alwar, Jodhpur, Goa, Dharwad & Kathmandu (Nepal). The Ice Cream plant at Agra manufacture Ice cream for Hindustan Lever marketed under the brand name of KWALITY WALLS. The RKJ Group has signed a franchise agreement with Tricon Restraints India (India) Pvt. Ltd., to run a fast food chain in Northern India under the name of PIZZA HUT by opening fifteen restaurants, the first six of which are already operational at Noida, Jaipur, Agra, Green Park, Defence Colony & Alaknanda. The first beverage plant was set up in 1969 at Agra under Agra Beverages Corporation Ltd., since then the family (consisting of RKJ & his brothers) has set up eighteen bottling plants in India (holding the market share of about 40% of the Pepsi manufactured and marketed in the country) and one in Nepal (holding 100% of the Pepsi share in the country). The bottling plants of the group are spread at Greater Noida (Devyani Beverages Ltd.), Jaipur, Kosi Kalan, Alwar & Jodhpur [Varun Beverages Ltd.), Goa (Goa Bottling Company Ltd.), Dharwada (Nectar Beverages Pvt. Ltd.) and Nepal [Varun Beverages (Nepal) Pvt. Ltd.]. The franchise area allocated by Pepsi Foods Limited to RKJ Group extents to the whole of Rajasthan, four districts of Haryana, East Madhya Pradesh. Delhi, nine districts of Western Uttar Pradesh, ten districts of Central Uttar Pradesh and North Western

Varun Beverages Ltd., was incorporated as a public limited company in June 1995, for bottling of various brands of Pepsi Soft Drinks like Pepsi, Mirinda Orange, Mirinda Lemon, 7UP and Soda at its plants for the domestic market. The company has its bottling plants at Jaipur, Kosi Kalan (Mathura, Uttar Pradesh), Alwar & Jodhpur. The combined turnover of VBL is about Rs. 180 crores. Devyani Beverages Ltd., was incorporated in 1990. The company has its bottling plant at Greater Noida. This is one of the modern plant with 4 Bottling Line including Fruit Juice Line. The turnover of the company is about rs. 90 crores. Devyani International Pvt. Ltd., was incorporated in 1991. The company during August 1997, signed a franchise agreement with Pepsico Restaurant International Pvt. Ltd., to setup a chain of Restaurants in Northern India, under the name of PIZZA HUT by opening 15 restaurants. The first six restaurants are already operational at Jaipur, Agra, Noida, Defence Colony , Green Park & Alaknanda (New Delhi). Devyani Foods Ltd., was incorporated in Sep 1989. It manufactures Ice Cream at Agra. Varun Beverages Nepal Pvt. Ltd., VBNPL, Nepal is an existing bottling unit taken over by RKJ Group in Feb 1998. Goa Bottling Company Ltd., (GBCL) The group has recently taken over this bottling plant to manufacture and supply the Pepsi range of Soft Drinks in Goa. Nectar Beverages Pvt. Ltd. (NBPL) The RKJ Group has taken over this bottling plant, in Dharwad, for manufacture and supply of Pepsi range of Soft Drinks in Karnataka.

GRAPHICAL PRESENTATION & ANALYSIS

TOTAL NUMBER OF RESPONDENTS Gender Male Female

No. of Respondents
92 108

Male 46% Female 54%

This graph indicates the total number of respondents contacted gender wise.

TOTAL NUMBER OF FEMALES AND MALES BY AGE GROUP

Gender 12-18 Male Female 13 20

Age Group 18-25 39 26 25-40 27 23 Above 40 13 39

40 35 30 25 20 15 10 5 0 12 to 18 13 20

39

Male Female 26 27 23 13

39

18 to 25

25 to 40

Above 40

This graph reflects the total number of respondents age and gender wise.

RESPONDENTS WHO HAVE AREATED DRINKS Gender 12-18 Male Female 13 20 Age Group 18-25 36 24 25-40 26 19 Above 40 10 34

40 35 30 25 20 15 10 5 0 12 to 18 13 20

36 26 19

Male Female 24 34

10

18 to 25

25 to 40

Above 40

This graph reflects the total number of respondents age and gender wise who have aerated drinks. In comparison with graph number 2 we find that 7 men and 11 females dont have aerated drinks.

CONSUMPTION PATTERN
AGE GROUP 12-15 Gender Between 1-5 Male Female 6 8 Frequency Between 5-10 5 9 Above 10 2 3

9 9 8 7 6 5 4 3 2 1 0 Between1-5 Between 5-10 Above 10 2 3 6 5 8 Male Female

This graph reflects that the highest frequency of consumption by females between 5-10 bottles per week and its 1-5 in males.

is

AGE GROUP 18-25 Gender Frequency

Between 1-5 Male Female 8 11

Between 5-10 19 7

Above 10 9 6

20 18 16 14 12 10 8 6 4 2 0 Between1-5 8 11

19 Male Female

9 7 6

Between 5-10

Above 10

This graph reflects that the highest frequency of consumption by females between 1-5 bottles per week and its 5-10 in males.

is

AGE GROUP 25-40 Gender Between 1-5 Male Female 7 10 Frequency Between 5-10 11 6 Above 10 8 3

12 10 8 6 4 2 0 7

11 10 8 6

Male Female

Between1-5

Between 5-10

Above 10

This graph reflects that the highest frequency of consumption by females is between 1-5 bottles per week and its between5-10 in males.

ABOVE 40 Gender Between 1-5 Male Female 9 29 Frequency Between 5-10 1 5 Above 10 0 0

30 25 20 15 9 10 5 0

29 Male Female

5 1 Between1-5 Between 5-10 0 0

Above 10

This graph reflects that the highest frequency of consumption by females & males is between 1-5bottles per week.

FLAVOUR PREFERENCE
AGE GROUP 12-18

Gender
Cola Male Female 6 3 Lemon 4 9

Flavours Orange 1 6 Mango 2 2 Others 0 0

9 8 7 6 5 4 3 2 1 0 Cola 3 4 6

9 Male Female 6

2 1

2 0 0

Lemon

Orange

Mango

Others

The flavoured most preferred by males in this age group is Cola followed by Lemon mango & orange. The flavour preferred by females in this age group is Lemon followed by Orange, cola & mango. This graph also reflects that there is no preference for other flavors available in the market. AGE GROUP 18-25

Gender
Cola Male 17 Lemon 12

Flavours Orange 14 Mango 3 Others 0

Female

18 16 14 12 10 8 6 4 2 0

17 14 12 Male Female

7 5 3

0 Cola Lemon Orange Mango

Others

The flavoured most preferred by males in this age group is Cola followed by orange, Lemon & mango. The flavour preferred by females in this age group is Lemon followed by orange, cola & mango. This graph also reflects that there is no preference for other flavors available in the market.

AGE GROUP 25-40

Gender
Cola Male Female 14 6 Lemon 7 3

Flavours Orange 4 8 Mango 1 2 Others 0 0

14 12 10 8 6 4 2 0

14 Male Female 8

7 4 3

1 Cola Lemon Orange

2 0 0

Mango

Others

The flavoured most preferred by males in this age group is Cola followed by, Lemon, orange & mango. The flavour preferred by females in this age group is orange followed by cola, lemon & mango. This graph also reflects that there is no preference for other flavors available in the market.

ABOVE 40

Gender
Cola Male Female 2 9 Lemon 6 14

Flavours Orange 2 11 Mango 0 0 Others 0 0

14 12 10 8 6 4 2 0 Cola 2 4 9

14 11 Male Female

2 0 Lemon Orange 0 0 0

Mango

Others

The flavour most preferred by males in this age group is Lemon followed by, cola & orange. The flavour preferred by females in this age group is lemon followed by cola, orange. This graph also reflects that there is no preference for mango & other flavors available in the market.

TOP OF THE MIND BRAND RECALL


GENDER: FEMALE

Brand
Pepsi Coke Sprite 12-18 8 6 2

Age Group 18-25 11 8 3 25-40 9 7 0 Above 40 15 10 3

7UP Fanta Mirinda Limca ThumsUP Maza Slice Others


16 14 12 10 8 6 4 2 0 8 6 2 11

1 1 0 0 2 0 0 0

0 0 0 0 2 0 0 0

0 0 0 1 2 0 0 0
15

0 1 0 3 2 0 0 0

11 9 8 7

10

3 2 00 0 00 0 000

2 000 00 0 0 18 to 25

2 0 00

3 0 10

2 00 0

12 to 18

25 to 40

Above 40

Pepsi Limca

Coke ThumsUP

Sprite Maza

7UP Slice

Fanta Others

Mirinda

This graph reflects that the brand recall of Pepsi is highest followed by Coke in the age group 12-18.In the age group 18-25 Pepsi has the highest brand recall followed by Coke. In the age group 25-40 Pepsi has the highest brand recall followed by Coke. The last group Pepsi has the highest brand recall followed by Coke. GENDER: MALE

Brand
12-18 Pepsi Coke Sprite 7UP Fanta 8 5 0 0 0 15 16 2 0 0

Age Group 18-25 25-40 12 9 4 0 0 Above 40 4 3 1 0 0

Mirinda Limca ThumsUP Maza Slice Others


16 14 12 10 8 6 4 2 0 5 8

0 0 0 0 0 0
1516

0 1 2 0 0 0

0 1 0 0 0 0

0 2 0 0 0 0

12 9

4 2 00 0 0 0 0 0 0 0 12 to 18 0 00 1 2 00 0 1

4 3 1 2

0 00 0 000 25 to 40

18 to 25

0 0 0 00 0 0 Above 40

Pepsi Limca

Coke ThumsUP

Sprite Maza

7UP Slice

Fanta Others

Mirinda

This graph reflects that the brand recall of Pepsi is highest followed by Coke in the age group 12-18.In the age group 18-25 Coke has the highest brand recall followed by Pepsi. In the age group 25-40 Pepsi has the highest brand recall followed by Pepsi. The last group agrees with the age group25-40 in toto.

BRAND PREFERENCE
GENDER: FEMALE

Brand
12-18 Pepsi 2 3

Age Group 18-25 25-40 2 Above 40 5

Coke Sprite 7UP Fanta Mirinda Limca ThumsUP Maza Slice Others
8 6 4 2 0 2 1 2 1 0 12 to 18 2 2 5 5

1 5 2 5 1 2 0 2 0 0

2 4 1 5 0 2 1 6 0 0

2 2 1 6 2 0 2 2 0 0
8

2 5 2 8 3 7 2 0 0 0

5 4 3 2 00 1 0 2 1

5 5 2 2 3 2 00 0 Above 40

00

222 2 2 2 1 0 00 25 to 40

18 to 25

Pepsi Limca

Coke ThumsUP

Sprite Maza

7UP Slice

Fanta Others

Mirinda

This graph reflects that the brands most preferred in the age group 12-18 by females are Fanta & Sprite. In age group 18-25 the most preferred brand is Maaza followed by Fanta, Sprite and Pepsi. In the age group 25-40 the most prefers brand is Fanta. In the last age group the most preferred brand is Fanta followed by Limca, Sprite and Pepsi. GENDER: MALE

Brand
12-18 Pepsi Coke Sprite 3 3 4 6 2 7

Age Group 18-25 25-40 4 2 3 Above 40 2 0 1

7UP Fanta Mirinda Limca ThumsUP Maza Slice Others


9 8 7 6 5 4 3 2 1 0 4 33 2 1 0 00

0 1 0 0 0 2 0 0
9 7 6

2 4 0 3 9 3 0 0
8

1 4 0 3 8 1 0 0

0 2 0 5 0 0 0 0

5 4 3 2 2 0 18 to 25 0 25 to 40 3 2 1 1 0 4 3 4 3 2 1 0 0 0 Above 40 0 0 2

12 to 18

Pepsi Limca

Coke ThumsUP

Sprite Maza

7UP Slice

Fanta Others

Mirinda

This graph reflects that the brands most preferred in the age group 12-18 by males are Sprite followed by Coke and Pepsi. In age group 18-25 the most preferred brand is Thumsup followed by Sprite and Pepsi. In the age group 25-40 the most preferred brand is Thumsup followed Fanta and Pepsi. In the last age group the most preferred brand is Limca followed by Sprite and Pepsi.

STRENGTHS OF THE PREFERRED BRANDS


GENDER: FEMALE Strengths 12-18 Taste 12 Age Group 18-25 16 25-40 15 Above 40 23

Availability Advertising

3 5

2 6

0 4

3 8

25 20

Taste

Availability

Advertising

23

16 15 10 5 5 0 12 to 18 18 to 25 3 2 6 12

15

8 4 0 25 to 40 Above 40 3

This graph reflects that taste happens to be the core strength of their brand followed by advertising.

GENDER: MALE Strengths 12-18 Taste Availability Advertising 11 0 2 Age Group 18-25 23 7 6 25-40 17 0 9 Above 40 7 0 3

25 20 15 11 10 5 0 0 12 to 18

23

Taste

Availability 17

Advertising

7 2

9 6

7 3

0 18 to 25 25 to 40

0 Above 40

This graph reflects that taste happens to be the core strength of their brand followed by advertising.

PREFERRED TV COMMERCIALS
Commercial A B C 12-18 10 2 2 GENDER : FEMALE Age Group 18-25 12 4 5 25-40 3 2 9 Above 40 5 1 3

D E F G H

1 2 3 0 0

0 0 3 0 0

0 2 0 0 3
E-Pepsi (Sharuk & Kareena) F-Pepsi (Britney Spears) G-ThumsUP (Kante) H-Coke (Amir Khan)

9 0 2 0 4

APepsi (Sharuk, Kareena & Adnan) B- Coke (Aishwarya Rai & Kids) C-Pepsi (Amitab & Sachin) D-Sprite (Kite Flying)
12 10 10 8 6 4 4 2 2 2 0 12 to 18 1 0 0 00 18 to 25 0 0 2 3 3 3 12

C
9

F
9

5 3 2 2

5 4 3 2 1 0 00 0 Above 40 0

25 to 40

This graph reflects that the most preferred advertisement in the age group 12-18 is the new Pepsi commercial featuring is Sharuk, Kareena & Adnan .In the age group the most like advertisement is the new Sachin. In the age group 25-40 the most liked advertisement is the Pepsi commercial featuring Amitab & Sachin followed by the Pepsi commercial featuring Sharuk, Kareena & Adnan. In the last age group the most preferred ad is featuring is Sharuk, Kareena & Adnan. GENDER : MALE Commercial A B 12-18 6 3 Age Group 18-25 18 6 25-40 4 0 Above 40 3 2 the new commercial of Sprite The Kite Flying one followed by the new Pepsi commercial Pepsi commercial featuring Sharuk, Kareena & Adnan followed by the Pepsi commercial featuring Amitab &

C D E F G H

0 0 2 1 0 1

2 3 0 2 3 2

6 4 1 0 6 5
E-Pepsi (Sharuk & Kareena) F-Pepsi (Britney Spears) G-ThumsUP (Kante) H-Coke (Amir Khan)

4 0 1 0 0 0

APepsi (Sharuk, Kareena & Adnan) B- Coke (Aishwarya Rai & Kids) C-Pepsi (Amitab & Sachin) D-Sprite (Kite Flying)
18 16 14 12 10 8 6 4 2 0 12 to 18 3 2 0 0 1 0 1 2 0 18 to 25 3 2 3 2 6 6 4 18

6 4 1

6 5 3 0 2 0 4 1 0 0 0

25 to 40

Above 40

This graph reflects that the most preferred advertisement in the age group 12-18 & the age group 18-25 is the new Pepsi commercial featuring is
Sharuk Kareena & Adnan followed by the Coke commercial featuring Aishwarya Rai and the kids. In the age group 25-40 the most liked advertisement is the Pepsi commercial featuring Amitabh and Sachin followed by the Coke

commercial featuring Amir Khan. In the last age group the most preferred advertisement is the Pepsi commercial featuring Amitabh and Sachin followed by the Pepsi commercial featuring Sharuk,Kareena & Adnan

PREFERRED PUNCH-LINES

GENDER: MALE Punch-Lines 12-18 A B C D E A Dil Mange More C Tanda Mathlab Coca Cola E Taste TheThunder 6 0 1 3 3 Age Group 18-25 12 10 0 1 13 25-40 8 7 5 0 6 B - Le Chal D Life Ho To Aisi Above 40 5 0 0 5 0

14 12 10 8 6 6 4 2 0 0 12 to 18 1 0 3 3 1 12 10

13

8 7 6 5 5 5

0 25 to 40

0 0 Above 40

18 to 25

Dil maange more happens to be the favorite punch-line in all the age groups followed by Le Chal and taste the thunder.

GENDER: FEMALE Punch-Lines 12-18 A B C D E A Dil Mange More C Tanda Mathlab Coca Cola E Taste TheThunder
19

Age Group 18-25 15 2 0 2 5 25-40 8 1 0 6 4 B - Le Chal D Life Ho To Aisi Above 40 19 3 0 10 2

11 0 3 2 4

20 18 16 14 12 11 10 8 6 4 2 0 0

B 15

10 8 4 2 2 0 18 to 25 2 5 1 6 4 0 3 0 Above 40 2

12 to 18

25 to 40

Dil maange more happens to be the favorite punch-line in all the age groups followed by life ho to aisi and taste the thunder.

MOTIVATORS FOR BUILDING LOYALTY


Factors A B C D E F G H I 12-18 6 5 1 0 0 0 3 0 5 GENDER: FEMALE Age Group 18-25 6 0 1 2 2 0 5 1 8 25-40 3 0 1 0 0 0 2 0 10 Above 40 8 0 0 0 1 0 9 0 16

AAssociation with movies and music stars B- Association with Sports Stars C-Association with Sports D-Association with Eating Joints
16 14 12 10 8 6 6 4 2 0 1 0 00 12 to 18 0 5 3 0 1 5 2 2 1 0 18 to 25 6 5 8

E-Association with Culture F-Schemes Introduced G-Advertising Campaign H-Events Conducted / Sponsored I -Friends
16

10 8

3 1 2 000 0 0 0 0 1 0 0

25 to 40

Above 40

The main motivator for females in the age group 12-18 is association with movies & music (celebrities).Respondents in the age group 18-25 feel that their main motivator is their friend circle followed by association with movies & music (celebrities) and advertising campaigns. The respondents in the age group 25-40 agree in toto with respondents in the age group 18-25 in this regard. The last group feels that their main motivator is friend circle followed by advertising campaigns & association with movies & music (celebrities).

GENDER: MALE Factors A B C D E F G H I 12-18 2 2 1 0 0 0 4 0 4 Age Group 18-25 3 3 3 0 4 2 12 0 9 25-40 6 6 3 0 0 0 3 0 8 Above 40 0 2 2 0 1 0 2 0 3

AAssociation with movies and music stars B- Association with Sports Stars C-Association with Sports D-Association with Eating Joints

E-Association with Culture F-Schemes Introduced G-Advertising Campaign H-Events Conducted / Sponsored I -Friends

12 10

12

A D G
9 8 6 6

B E H

C F I

8 6 4 2 2 2 0 1 0 00 12 to 18 0 0 18 to 25 0 00 0 25 to 40 0 4 4 3 4 33 2 3 3

3 2 2 1 0 0 0 0 2

Above 40

The main motivator for males in the age group 12-18 is friend circle and advertising campaigns. Respondents in the age group 18-25 feel that their main motivator is their advertising campaigns followed by their friend circle .The

respondents in the age group 25-40feel that their friend circle plays a very important role followed by advertising and association with sports .The last group feels that their main motivator is their friend circle.

BRAND PREFERENCE BETWEEN COKE AND PEPSI


GENDER: MALE

Brand 12-18 Pepsi Coke 9 4

Age Group 18-25 21 15 25-40 12 14 Above 40 8 2

25 21 20 15 14

Pepsi Coke

15 9

10

12

4 2

0 12 to 18 18 to 25 25 to 40 Above 40

This graph indicates that the preference for Pepsi is greater than that of Coke excepting the age group 25-40.

GENDER: FEMALE Brand 12-18 Pepsi Coke 12 8 Age Group 18-25 14 10 25-40 12 7 Above 40 19 15

20 18 16 14 12 10 8 6 4 2 0

Pepsi Coke 14 12 10 8 7 12

19 15

12 to 18

18 to 25

25 to 40

Above 40

This graph indicates that the preference for Pepsi is greater than that of Coke in all age groups.

PRODUCTION AND SERVICE PREFERENCE ANALYSIS


GENDER : MALE AGE GROUP 12-18 Pepsi
Outstan ding Taste Scheme Adds Packagin g Customer care 8 4 9 2 0 Very good 1 3 0 7 0 Good 0 1 0 0 9 Bad 0 0 0 0 0 Outsta nding 4 2 4 3 0

Coke
Very good 0 2 0 1 4 Good 0 0 0 0 0 Bad 0 0 0 0 0

AGE GROUP 18-25 Pepsi


Outstan ding Taste Scheme Adds Packagin g Customer care 20 19 21 18 17 Very good 1 1 0 2 4 Good 0 1 0 1 0 Bad 0 0 0 0 0 Outsta nding 13 12 15 13 15 Very good 2 3 0 2 0

Coke
Good 0 0 0 0 0 Bad 0 0 0 0 0

AGE GROUP 25-40 Pepsi


Outstan ding Taste Scheme Adds Packagin g Customer care 12 10 12 9 12 Very good 0 2 0 2 0 Good 0 0 0 1 0 Bad 0 0 0 0 0 Outsta nding 14 8 14 7 0

Coke
Very good 0 6 0 5 14 Good 0 0 0 2 0 Bad 0 0 0 0 0

AGE GROUP Above 40 Pepsi


Outstan ding Taste Scheme Adds Packagin g Customer care 8 7 8 6 8 Very good 0 1 0 2 0 Good 0 0 0 0 0 Bad 0 0 0 0 0 Outsta nding 2 2 2 2 2 Very good 0 0 0 0 0

Coke
Good 0 0 0 0 0 Bad 0 0 0 0 0

CUMULATIVE FIGURES OF MALE PREFERENCES


Outstan ding Taste Scheme Adds Packaging Customer care 47 40 50 35 37 Very good 2 6 0 13 4 Good 0 2 0 2 9 Bad 0 0 0 0 0 Outsta nding 33 22 35 25 0 Very good 2 13 0 8 31 Good 0 0 0 2 4 Bad 0 0 0 0 0

Customer care care

Customer

Packaging

Packaging Adds Adds Scheme Scheme Taste Taste


0 0 20 10

20 40

30

60 40

Outstanding good Outstanding VeryVery good Good Good Bad Bad

PEPSI

COKE

GENDER FEMALE AGE GROUP 12-18 Pepsi


Outstan ding Taste Scheme Adds Packaging Customer care 12 10 12 9 0 Very good 0 2 0 3 10 Good 0 0 0 0 2 Bad 0 0 0 0 0 Outsta nding 8 6 8 8 6

Coke
Very good 0 2 0 0 1 Good 0 0 0 0 1 Bad 0 0 0 0 0

AGE GROUP 18-25 Pepsi


Outstan ding Taste Scheme Adds Packagin g Customer care 14 11 14 9 4 Very good 0 2 0 2 3 Good 0 1 0 3 7 Bad 0 0 0 0 0 Outsta nding 10 10 6 7 10

Coke
Very good 0 0 4 2 0 Good 0 0 0 1 0 Bad 0 0 0 0 0

AGE GROUP 25-40 Pepsi


Outstan ding Taste Scheme Adds Packagin g Customer care 12 12 12 9 1 Very good 0 0 0 3 5 Good 0 0 0 0 3 Bad 0 0 0 0 0 Outsta nding 2 2 2 2 2

Coke
Very good 0 0 0 0 0 Good 0 0 0 0 0 Bad 0 0 0 0 0

AGE GROUP ABOVE 40 Pepsi


Outstan ding Taste Scheme Adds Packagin g Customer care 19 10 19 10 8 Very good 0 8 0 6 6 Good 0 1 0 3 5 Bad 0 0 0 0 0 Outsta nding 15 9 9 12 10

Coke
Very good 0 6 5 3 3 Good 0 0 1 0 2 Bad 0 0 0 0 0

CUMULATIVE FIGURES OF FEMALE PREFERENCES


Outstan ding Taste Scheme Adds Packaging Customer care 57 43 57 37 13 Very good 0 12 0 14 24 Good 0 2 0 6 17 Bad 0 0 0 0 0 Outsta nding 35 27 25 29 28 Very good 0 8 9 5 4 Good 0 0 2 1 3 Bad 0 0 0 0 0

Customer care Packaging

Customer care Packaging Adds Scheme Taste 0 10 20 30 40 Good 50 60 Bad 0 10 20 30 40 Good 50 60 Bad

Adds

Scheme

Taste

Outstanding

Very good

Outstanding

Very good

PEPSI

COKE

This graph indicates that Pepsi is overall preferred excepting for customer care .

CONCLUSION
Working on this project has been a very effective practical learning process to me. This project has given me a chance to understand the buying behaviour & the buying process towards areated drinks. On the basis of all the field work and table work done, I would like to make a few suggestions which may help the company in increasing the total market as well as the individual sale of the company. Soft drinks retail at prices between Rs. 6 and Rs. 48. This happens to be expensive when measured against purchasing power, according to one study, it takes an Indian 50 minutes of work to be able to buy a bottle(300ml) in other countries, and the norm is five minutes. Thus to increase the total market of soft drinks and their individual shares, manufactures should try and decrease the prices, so as to increase sales. Soft drink cans which are very convenient, as the consumer can take them anywhere, unlike a bottle, are very expensive retailing from Rs. 15-Rs. 18. To increase sale of cans, this price should be brought down. Innovations increase sales of company. for e.g. fountain Pepsi increased sales of Pepsi, Cans increased sales of Coca-Cola. Therefore the companies should constantly come out with innovative ideas. e.g. 300 ml plastic bottles, which the consumer can take with him, unlike the glass bottles, which he has to return. Plastic bottles can even be used again by households for various purposes. It is also recommended that companies should launch soft drink in small pack 150 ml and 100 ml(travel packs for trains)

The soft drink cans and plastic bottles should mention the calories and other related information on the packing. It is seen In India, that people prefer having their drinks with or after food. So Companies should have commercials, which show people enjoying their drink with a good meal, so that consumers associate drinking soft drinks while having their meals. Companies should try to educate the consumer about the health-related subject. For e.g.: - doctors recommend Limca to patients. Cola drinks are known to be very fattening, but in fact cola drinks contain no calories from fat they contain calories from sugar which can be easily burned off. Companies have to put more and more visi-coolers, counters, ice box etc. to gain more loyalty of shopkeepers. It is observed that the preference & demand for other flavours is zero, so it is advised that the company should take dramatic steps in promoting them.

BIBILOGRAPHY
1) Text books: a) b) Marketing Management 10th edition by Phillip Kotler Principles of Marketing 8th edition by Phillip Kotler &Gary

Armstrong. c) Market Research by W. Boyd Jr, Ralph Westfall, and Stanley

F.Stasch. d) e) Elements of Marketing Research by Pradeep Kumar. Jack Straight from the Gut by Jack Welch.

2) Business & General Interest Magazines: a) b) c) d) e) f) Business Today Advertising & Marketing Business India Business World Outlook India Today

3) News Papers a) b) c) d) 4) Websites a) b) Pepsico.com Pepsiworld.com Hindustan Times Times of India Economic Times Financial Express

c)

Indiainfoline.com

QUESTIONNAIRE
Subject: Consumer Behavior Topic: Comparative analysis between Pepsi & Coke Personal Information: (A) Name:___________________________________________________ (B) Address: _________________________________________________ (C) Phone No: 1) Residence:____________ 2) Office: ________________ (D) Age :Between 12-18 Between 18-25 Between 25-40 Above 40 (E) Sex: Male Female 1) Do you have aerated drinks? Yes No 2) How many soft drinks do you consume in a week? a) Between 1-5 b) Between 5-10 c) Above 10 3) Which flavors do u like? a) Cola b) Lemon c) Orange d)Mango e) Others 4) Which brand Comes to your mind? a) Pepsi b) Coke c) Sprite d) 7UP e) Fanta f) Mirinda g) Limca h) Thums UP I) Maaza j) Slice k) Others 6) Which Brand do you prefer? a) Pepsi b) Coke c) Sprite d) 7UP e) Fanta f) Mirinda g) Limca h) Thums UP I) Maaza j) Slice k) Others 7) What according to you is the strength of your brand? ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ___

8) What motivates you to build loyalty towards a particular brand? a) Brand Ambassadors: 1) Movie Stars 2) Music Stars 3) Sportsmen b) Associations with Sports c) Associations with Eating Joints (e.g. pizza hut, McDonalds) d) Associations with Culture e) Schemes offered f) Advertisement campaigns g) Events carried out h) Friend circle i) Others __________________________________________________ 9) With what would you like to associate your brand with? ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ 10) Which T.V Commercial appeals to you the most and why?(Soft drinks) ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ 11) Which brand according to you has the most effective punch line and why? ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ___ 12) What demotivates you from buying other brands? ____________________________________________________________ ____________________________________________________________ __ 13) Given a choice between Pepsi & Coke what would you prefer and why? ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ___ 14) Please grade them on the basis of your experiences Pepsi Outstanding Good Average Bad Outstanding a) Taste b) Schemes c) Adds d) Packaging e) Customer Care Coke Good Average Bad

You might also like