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PROJECT REPORT ON
A study of Indian Aerated Drink industry with special focus on retailers satisfaction level with respect to Coke India vs. PepsiCo India
Project Guide
Submitted By:-
PREFACE
A comprehensive practical study of management is a supplement to the theoretical classroom knowledge. It helps to understand the subject more precisely. This report tries to outline idea of professional world and helps in understanding the pragmatic aspect of management function. Own observation are significant towards the contribution in learning the subject. The report is therefore as a design as a reference of organisation function rather than copy down instrument. My humble endeavour and motive in presenting the project report is to find out the comparison of brands between Coca-Cola and Pepsi. It is hoped that this project serve as a supportive documents to research worker as effort has been tried to make this report and informative stimulating and self explanatory.
Amit Rana
ACKNOWLEDGEMENT I think if honestly reflects how I got here, what I think I might do well, and so forth, I discover a debt to others that spans written history. The work of some unknown person makes our lives easier every day. I believe it's appropriate to acknowledge all of these unknown persons; but it is also necessary to acknowledge those people I know have directly shaped my work. Through this acknowledgement, I express my sincere gratitude towards all those people who have helped in the preparation of this project, which has been a good learning experience for me. I would like to thank the distribution channel and Logistics department of the both Giant Organisation Coke and Pepsi. Both company has Provided us the various touch points of the whole chain. I have covered the whole chain of rural area. Finally I express my sincere thanks to Prof. Guru Swarup who guided me throughout this project.
Amit Rana 611012002
EXECUTIVE SUMMARY
Coca-Cola and PepsiCo are the two major companies in the world for cola drinks and have a huge world market share. These two companies have captured the market of each and every country they get into and same I the case in India where Coke has a market share of 57.8% while pepsi has a market share of 35.6% and are continuously fighting for a larger market share and continuously attacking each other either by Advertisements, brand ambassadors, products and marketing of their brand. All this is fine but the main core competency of such products is in the Distribution Process and in the satisfaction of their Retailers thus a strong distribution process and a strong satisfaction level means more number of retailers and more the retailers means more the availability of the product and more the availability of the product means more the market share and thus the curiosity to know who is the better distributor and has a strong distribution led us to the project A study of Indian Aerated Drink industry with special focus on retailers satisfaction level with respect to Coke India vs. PepsiCo India I got the number of sellers by convenient sampling and analysis and secondary data analysis and the results are given in the project below
Table of Contents
1 .INTRODUCTION TO SUBJECT 7-10 1.1 HOME LOAN 1.2 TYPE OF HOME LOAN 1.3 OBJECTIVE 1.4 SCOPE 2 .INTRODUCTION TO COMPANY 11-45 2.1 PROFILE OF SBI 2.2 PROFILE OF ICICI 2.3 APPLICATOIN PROCESS OF HOME LOAN 3. OVERVIEW OF INDUSTORY 46-50 3.1 HISTORY OF BANKING SECTOR 3.2 MAJOR PLAYERS 4. RESEARCH METHODOLOGY 51-53 4.1 DESIGN OF RESEARCH 4.2 SAMPLING PLAN 5. DATA ANALYSIS AND INTERPRTATOIN 54-84 6. LIMITATIONS & CONCLUSION 85-87 7. BIBLIOGRAPHY ANNEXURE QUESTIONNAIRE
CH 1: RESEARCH METHODOLOGY
1. Research Methodology
Major objectives
To study the satisfaction level of retailers. In depth study of the distribution channel of Pepsi and coke Critically compare the Supply chain management of the both company. Find out the limitation and strength of both companies.
Research design
The research design that will be use is descriptive research 7
Involves gathering data that describe events and then organizes, tabulates, depicts, and describe the data Uses description as a tool to organize data into patterns that emerge during analysis Often uses visual aids such as graphs and charts to aid the reader.
Refers to the nature of the research question The design of the research The way that data will be analyzed for the topic that will be researched
There are three methods of data collection under this method. They are: Survey Interviews Observations
Sampling plan
Target population: Retailers who stock coke and pepsi mainly panwalas Sampling size: 100 Sampling technique: convenience sampling Sample Frame: - All members in the retailing channel and who influence the channel. Sample Unit: - Any retailer and dealer who stock pepsi and coke. Sampling Method :- Non probability convenience sampling
Primary data Primary data would be collected through the structured questionnaire consisting mainly open ended questions Secondary data Secondary data would be collected from the internet, journals, and reference books.
All the open-ended questions will be analysed by adding up the responses against each alternative and answers from the various respondents. Transcripts will result in the finding to explore the changes that are likely to impact the unique aspects of beverage industry, with present scenario in India and in world. Our findings will show the current trends in beverage industry, various problems faced by the industry according to various respondents. 9
Expected contribution of the study The analysis made as a part of this study may contribute in a way analysis of strength and weakness of the sector as whole may be taken into consideration and various firms together may make efforts to overcome those limitations and as a result not only the beverage manufacturing firms would be benefited but others who uses the services of these firms would also be benefited.
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Giving any answer without understanding the question or without thinking. STATISTICAL TOOLS
Representation of statistical data by diagram, graphs, charts, or pictures is more effective then tabular representation being easily intelligible to layman. Indeed diagrams are most essential whenever it is required to convey any statistical information to the generic public. The more important types of diagram which is use in statistical work are:-
BAR DIAGRAM Mode of diagrammatic representation of data is the bar diagram. In this method the bar of equal width are taken for the different items of the series. The lengths of the bar represent value of the variables concerned.
PI CHART It is a circle whose area is divided proportionately among the components by straight lines drawn from the centre to the circumference of the circle. When statistical data are given for a number of categories and I am interested in the comparison of various categories or between a part of the whole, such a diagram is very helpful in effectively displaying the data and the type of sampling is convenient and judgment sampling.
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Since last few years, soft drink market is India at the end of the 2000-2010 decade. So both the soft drink major viz. Coca Cola and Pepsi has been emphasizing of placing their brand at as many outlets as possible so that could cope up with the competition spreading at a growth rate of 8-10%, it has forecasted that it would become Rs.9000 Crore market in India. The main object of this project is to comprehensively analyze the distribution of Coca-Cola and its strength in market against its rival Pepsi and also to be aware like the shopkeeper about the sale and display of the Cokes brand like Thumbs-up, Maaza etc.
This was done in two ways:a) Comprehensive market analysis was done by visiting various shops throughout Palampur Region. b) To ask the shop keeper about the promotions and schemes given to them to them in order to sell and promote their products. 12
There is a huge fight between the two soft drinks giant Coca-Cola (Coke) and PepsiCo (Pepsi) to grab a large part of the Indian markets. The main reason, well the growing Indian middle class and the huge disposable income they have and also the increasing consumption of soft drinks by Indians. Pepsi and Coke both have brands attacking each other if Coke introduces one brand then Pepsi will bring another brand to fight it and vice a versa. Though Coke is this huge giant and Pepsi might be just a fly in front of it but the fly troubles and is much capable of fighting back and also winning. The main area where they can capture each others market is in the network of distribution channels they use with restaurant chains, pan walas, hotels and eateries to compete with each other. It is to these sellers where these two giants are vying for in order to capture a larger market share and trounce the other and that is why the project on the satisfaction of these members to see who is winning the competition. According to industry experts, the market for carbonated drinks in India is worth US$ 1.5 billion while the juice and juice-based drinks market accounts for US$ 0.25 billion. Growing at a rate of 25 per cent, the fruit-drinks category is one of the fastest growing in the beverages market. Sports and energy drinks, which currently have a low penetration in the Indian market, have sufficient potential to grow. The market for alcoholic beverages has been growing consistently. 'The Future of Wine', a report on the state of the wine industry over 50 years, suggests that the market for wine in India was growing at over 25 per cent per year.
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Major investments Private investment has been one of the key drivers for growth of the Indian food industry. The 'India Food Report 2008', reveals that the total amount of investments in the food processing sector in the pipeline for the next three years is about US$ 23 billion.
The government has received around 40 expressions of interest (EoI) for the setting up of 10 MFPs with an investment of US$ 514.37 million.
Reliance Industries Ltd has invested US$ 1.25 billion in a dairy project. Focusing on India as a rapidly growing market, US soft drinks giant PepsiCo would pump in an estimated US$ 152.30 million to set up four new food and beverages projects by 2012.
Geneva-based food service chain Global Franchise Architects (GFA) aims to open 250 stores around the world by March 2010, of which 100 will be in India.
Today India is one of the most potential markets with the population of around 1000 million people. There is a growth of 30% in the soft drink industry. These factors are the reason for the entry of two giants in the soft drink industry in the world to enter in the Indian market. The cola giants coke and Pepsi, together control almost 96% of entire Indian market while other companies has only share 4%. In a long span, a culture transforms itself over and over. The map is remade attitude change for better or worse. Processes are invented, hailed as revolutionary and discarded obsolete. So it was one hundred year was a very much different world from what we have today, but at least one sense, not very different at call. Many reasons have been advanced to explain the last century. With over 100 yrs. Of interrupted growth despite war, economic depression and other disturbances there be something that sets soft drink apart from the consumer culture.
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The main production of soft drink was stored in 1830s & since then from those experimental beginning there was an evolution until in 1781, when the worlds first cola flavoured beverage was introduced. These drinks were called soft drinks, only to separate them from hard alcoholic drinks. This drinks do not contains alcohol & broadly specifying this beverages, includes a variety of regulated carbonated soft drinks, diet & caffeine free drinks, bottled water juices, juice drinks, sport drinks & even ready to drink tea/coffee packs. So we can say that soft drinks mean carbonated drinks. Today, soft drink is more favourite refreshment drink than tea, coffee, juice etc. It is said that where there is a consumer, there is a producer & this result into completion. Bigger the player, the harder it plays. In such situation broad identity is very strong. It takes long time to make broad famous. Coca Cola has its beginning in 1981 & since then has been one of the three most dominate players in this soft drink industry. The name soft drink was given by Americans as against hard drink, which is mainly alcoholic. So in general terms non-alcoholic drinks are considers as soft drink. Soft drink consists of flavour base, sweetener and carbonated water. The major participants involved in the production and distribution of soft drink are concentrate and syrup producers bottlers and retail channel concentrate-producers manufactures basis of soft drink flavour and send them to bottlers. Bottlers purchase the concentrate and add carbonated water and sometime sweeter and bottle or can the soft drink. This soft drink delivered to the customer accounts retail channels that sales or serve the product directly to the customers. In USA soft drink had existed since the early 1800s where many US druggists had concentrate blend of fruit syrups and carbonated soda water that they sold them at their soda fountains. 15
1798 The term "soda water" first coined. 1810 First U.S. patent issued for the manufacture of imitation mineral waters. 1819 The "soda fountain" patented by Samuel Fahnestock. 1835 The first bottled soda water in the U.S. 1850 A manual hand & foot operated filling & corking device, first used for bottling soda water. 1851 Ginger ale created in Ireland. 1861 The term "pop" first coined. 1874 The first ice-cream soda sold. 1876 Root beer mass produced for public sale. 1881 The first cola-flavoured beverage introduced. 1885 Charles Aderton invented "Dr Pepper" in Waco, Texas. 1886 Dr. John S. Pemberton invented "Coca-Cola" in Atlanta, Georgia. 1892 William Painter invented the crown bottle cap. 1898 "Pepsi-Cola" is invented by Caleb Bradham. 1899 The first patent issued for a glass blowing machine, used to produce glass bottles. 1913 Gas motored trucks replaced horse drawn carriages as delivery vehicles. 1919 The American Bottlers of Carbonated Beverages formed. 1920 The U.S. Census reported that more than 5,000 bottlers now exist. Early 1920's the first automatic vending machines dispensed sodas into cups. 1923 Six-pack soft drink cartons called "Hom-Paks" created. 1929 The Howdy Company debuted with its new drink "Bib-Label Lithiated Lemon-Lime Sodas" later called "7 up" Invented by Charles Leiper Grigg.
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1934 Applied colour labels first used on soft drink bottles, the colouring was baked on the face of the bottle. 1952 The first diet soft drink sold called the "No-Cal Beverage" a ginger ale sold by Kirsch. 1955 Coke enters for the first time into Indian markets 1957 The first aluminium cans used. 1959 The first diet cola sold. 1962 The pull-ring tab first marketed by the Pittsburgh Brewing Company of Pittsburgh, PA. The pullring tab was invented by Alcoa. 1963 The Schlitz Brewing Company introduced the "Pop Top" beer can to the nation in March, invented by Ermal Fraze of Kettering, Ohio. 1965 Soft drinks in cans dispensed from vending machines. 1965 The reseal able top invented. 1966 The American Bottlers of Carbonated Beverages renamed The National Soft Drink Association. 1970 Plastic bottles are used for soft drinks. 1973 The PET (Polyethylene Terephthalate) bottle created. 1974 The stay-on tab invented Introduced by the Falls City Brewing Company of Louisville, KY. 1977 Coke leaves India in order to protect its secret about the ingredients used in its soft drink 1979 Mello Yellow soft drink is introduced by the Coca Cola Company as competition against Mountain Dew. 1981 The "talking" vending machine invented. 1989 Pepsi Enters into India 1993 Coca Cola re-enters into India after the easing of economic norms
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Although the beverage industry has been in existence for quite some time now, yet it is still at an infant stage considering its size and place in the market. India stands at third number in the consumption of beverage, behind United States and China. It accounts for almost 10 per cent of global beverage consumption. Today, it is being looked as a country that offers the greatest potential, even more so than China. This year, the beverage industry in India is being estimated to grow at 17% at Compounded Annual Growth Rate (CAGR).
Non-alcoholic Drinks Company actually sees India as a potential market because of the kind of summer that India sees. The Coca-Cola Co reported its profit climbed 43 per cent in the second quarter to two billion dollar, getting a boost from double-digit unit case volume growth. The Indian CSD (carbonated soft drinks) market stands at 1.2 billion dollar and the fruit-based beverages and bottled water at 600 million dollar and 300 million dollar, respectively.
The wine industry in India is one of the most sought after market at present and all eyes are on it. The budget announced by the finance minister is not being seen as very advantageous to the wine industry as it did not announce any significant or major benefits all round for it. It was expected to make wine sector a part of the food processing industry, which would lead to uniformity in the state-wise tax structures. The wine industry in India needs investment to grow to its rightful size of about 30 million cases and it is possible only with lower production and marketing costs, taxes and increased competition.
As far as the beer industry is concerned, age-old excise policy on liquor and multiform regulations are hitting the beer industry. The Punjab Excise Policy of 1995, which inadvertently discourages breweries, while encouraging distilleries, has put the brewers in the country in a total mess. The beer industry is 18
clearly at a disadvantage. Repeated pleas have failed to bang the governments deaf ear. Apart from this, the government needs to make a uniform age limit to consume alcohol. Its different in different states. While an 18-year old guy can consume alcohol in Goa, you need to be at least 21 to do the same in Mumbai. In Punjab, its even higher where it is kept at 25 years. The National law is 21 years. The budget was expected to cut down the taxes on beer that is more than most of the countries in the world. While the average global taxes on price of the beer are 33.6 per cent, in India its about 49 per cent and therefore, affordability of beer in the country is lowest compared to world standards.
However, the impact on non-alcoholic industry has been different. For e.g., packaged coconut water will be cheaper by rupees three for 200ml as the retail prices have been reduced from Rs 15 to Rs 12, thanks to the abolition of a 16 per cent excise duty. The finance minister has also totally withdrawn the 16 per cent excise duty on tea and coffee mixes and puffed rice. India (1002 Mn kgs), China (990 Mn kgs), Sri Lanka (318.7 Mn kgs) and Kenya (286.0 Mn kgs) accounts for 80 percent of the worlds tea production. In May, tea production in India rose to 71,374 tonnes from 70,267 tonnes a year before. However, output has declined to 215.84 million kg till May this year from 240.24 million kg last year.
The budget has also made dairy majors like Amul, Mother Dairy and Nestle happy because the customs duty on bactofuges, that separates bacteria from milk, and increases the Punjab Excise Policy of 1995 shelf life of milk, has been abolished. On a bactofuge that costs between Rs 1.5 two corer, the companies will benefit rupees eight to Rs 10 lakh a piece.
More and more companies are entering and creating niche for themselves in the Indian budget industry, the latest being the fast moving consumer goods (FMCG) company Dabur. It is coming up with a new fruit flavored beverage called Real Burst.
Indian soft drinks story is old since the time of Rajas Maharaja as they enjoyed several soft drink like lassie, jaljeera, sharbat and tea etc. Now the Indian people have changed their consumption pattern into soft drinks. According to Pepsi philosophy, its the madness that encourages executive to think, to conjure up those creative tactics to knock the fizz out. The warriors are face to face once again here in India with different strategies and tactics to attack the rival. Coca cola is focusing upon the joint ventures with the existing bottlers to enhance its control on manufacturing in marketing of its products range and attain the equality standards of its class. Countering it Pepsi has taken the battle in its own hands by floating as investment of $95 billion to set Pepsi Co. India holdings as a subsidiary for company owned bottling
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operation (COBO). Both the companies are following different path to reach the same destiny i.e. fetch the bigger portion of aerated soft drink market in India. Serving annually against the world average of 80 bottles a month. Therefore, they are putting in their best effort to woe the Indian consumer who has tea, coffee etc. that is why water tea, coffee and nimbu pani are considered as the competitor of soft drinks. Cola is well set with its 53 bottling sites throughout the country giving it an edge, over competition by processing a well built and distribution set up. On the other hand Pepsi with 2 more years in India has been able to set an image of winner this time in India and get the pulse of Indian soft drink market. The soft drink giants are leaving no stone unturned and her for the long-terms. Coca Cola has been penetrating the market through its wide product range with a determination to change consumption pattern of soft drink in India. Firstly, they upgraded the whole industry by introducing 300 ml bottles, which in turn had given the industry a booming growth of 20% as compared to the earlier 5 % they want to develop a Coca culture and are working on a strategy of offer soft drink in every possible package. In Coca Cola camp, the idea of competition has not come from Pepsi, but from the other beverages such as Tea, Coffee, Nimbu Pani and Water etc. Pepsi is quite aggressive in its approach to Indian consumer. They are desperately working on the strategy to work for 1.5 hour to buy a bottle of soft drink in comparison to the international norms of 5 hour, a major hurdle to cross over for both the athletes for getting No. 1 position. India is one of the lowest soft drink consuming countries in the world. According to per capita in India is 5 bottles per year, while highest consumption in USA of 800 bottles per year. Lower, Lower middle & upper middle class consume 91% of soft drink market. The consumption diagram graph of soft drink has never, decrease. If once, it has increased. It is increasing at 24 25% per year. Even in India the market is constantly growing in 1993, the people of India consume only 0.7 lt/head, while in 1995 it increased from 0.7 to 0.93 lt/head, in 1997 it was 1.14 lt/head & in 2001 it was 1.62 lt/head.
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Year 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001
No of Bottles produced (million) 1968 2070 2195 2490 2800 3000 3240 4000 4450 4920 5670 6480 7000 Source: Scridb Research Paper
The two global majors Pepsi & Coca Cola dominate the soft drink industry market. Coca Cola, which had winded up its business from India during the introduction of IERA regime re-entered in India after 16 years letter in 1993. Coca Cola has acquired a major soft drink market by buying out local brands like Thums up, Limca & Gold Spot from Parle Beverages. Pepsi although started a couple of years before Coca Cola in 1991, right now it has lower market share. It has brought over Mumbai based Dukes range of soft drinks. Both Cola manufactures Pepsi & Coca Cola come up with their own market share & claim to have claimed to increase their share
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Brand Name Market Share (org figure) Pepsi Coca Cola Other Brands
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Muhtar Kent
Chairman of the board and Chief Executive officer ABOUT THE COCA COLA COMPANY CEO
Mr. Kent is Chairman of the Board and Chief Executive Officer of the Company. He has held the position of Chairman of the Board since April 23, 2009 and the position of Chief Executive Officer since July 1, 2008. From December 2006 through June 2008, Mr. Kent served as President and Chief Operating Officer of the Company. From January 2006 through December 2006, Mr. Kent served as President of Coca-Cola International and was elected Executive Vice President of the Company in February 2006. From May 2005 through January 2006, he was
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President and Chief Operating Officer of the Companys North Asia, Eurasia and Middle East Group. Mr. Kent originally joined the Company in 1978 and held a variety of marketing and operations roles until 1995, when he became Managing Director of Coca-Cola Amatil Limited-Europe. From 1999 until his return to the Company in May 2005, he served as President and Chief Executive Officer of the Eyes Beverage Group, a large publicly held Beverage Company, which was also the majority shareholder of Coca-Cola A.S., currently the sixth largest bottler in the Coca-Cola system. Other than the Company, he has not held any other public company directorships during the past five years.
COKE PARTNERS
The Coca-Cola Company works with a wide variety of organization to support health, fitness and good nutrition. The Coalition for Healthy and Active America (CHAA) CHAA was formed in 2003 by concerned organization and national leader to educate parents, children, schools and communities about the critical roles physical activity and nutrition education play in reversing the alarming trends of childhood obesity. As a non profit National grassroots coalition, CHAA is a various advocate for developing health and active lifestyle for Americas youth. CHAA is committed to working with schools to rededicate time for physical fitness giving parents the freedom to their children make their own nutritional choice, building school business model relationship that benefit our families by support healthy and active lifestyle and finding solution to the childhood obesity that are both responsible and realistic American Council for fitness and nutrition. The American Council for Fitness and Nutrition (ACFN) is a group of food, beverage and consumer products companies, non profit organization and trade association working together to improve the health of Americans, particularly youth by encouraging a healthy balance between fitness and nutrition. The cornerstone of all ACFN initiative is the idea that lasting solution to the nations obesity problem must be based on sound science and behavioural research. Such policies are likely to help parents and their children develop eating and exercise habits that lead to a healthier life.
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Grocery Manufacture of America The Grocery Manufacture of America (GMA) represents the food ,beverage and consumer products industry on key issue that affect the ability of brand manufacture to market their products and deliver superior value to the consumer. International Food Information Council (IFIC) Foundation the IFIC Foundation is a public education foundation disseminating sound, science-based information on food safety nutrition and health. International Life Science Institute (ILSI) is a non profit worldwide foundation that seeks to improve the well being of the general public through the pursuit of balance science. Its goal to further to understanding of scientific issue relating to nutrition food safety toxicology risk assessment and industry.Kidnetic.com is a fun interactive website that emphasize healthy achieved through s balance of physical activity and responsibility eating habits The website gives young people and their parents the tools and idea to help change habits and plant the seeds for healthy families tomorrow.Kidnetic.com is a program of the International Food Information Council (IFIC) Foundation. National Association for Sport and Education Association for sport and Physical Education seeks to enhance knowledge and professional practice in sport and physical activity through scientific study and dissemination of research based and experimental knowledge to members and public. National Soft Drink Association (NSDA) is the trade association for America Soft Drink Industry serving the pup
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has a good image in the market Cola have thus gained a status symbol mainly attributed to its standard and well penetrated, advertising and extensive distribution network. Total soft drink segment is growing at the rate of 10% per year still International standard area considered the per capita consumption of these serving in rock bottom, less than even our neighbour Pakistan and Bangladesh where it is four more as much. So with kind of a market potential coke entered in India in 1991. The government in Pune in 1992 allowed the plant to establish its first bottling plant. Now the company has grown to about 59 bottling plants throughout India.
SPRITE:
In 1961, a citrus flavoured drink made its U.S. debut, using sprite boy as inspiration for the name. This elf with silver hair and a big smile was used in 1940s advertising for coca-cola. Sprite is now the fastest growing major soft drink in the U.S., and the worlds most popular lemon-lime soft drink. But In India It Is not of citrus in nature and is pure caffeinated carbonated water.
FANTA:
The name FANTA was first registered as a trademark in Germany in 1941, when it was used for a few years for the soft drink created from available material and flavours. The name was then revived in 1955 in Naples, Italy, when it was used for the FANTA orange drink we know today. It is now the trademark name for a line of flavoured drink sold around the world.
DIET COKE:
The extension of the coca-cola name begun in 1982 with the introduction of diet coke (also called cocacola light in some countries). Diet coke quickly becomes the number- one selling low-calories soft drink in the world. 26
VANILA COKE:
It is an ice-cream in taste launched in 2004. But it failed miserably in the Indian Markets
LIMCA:
This is thirstquenching beverages features a fresh and light lemon-lime taste and a light hearted attitude. The Limca brand was introduced in 1971 and acquired by the coca-cola company in 1993.
MAAZA:
Maaza launched in 1984 and acquired by the coca-cola company in 1993, is a non-carbonated mango soft drink with a rich, juicy natural mango taste.
THUMPS UP:
In 1993, the coca-cola company acquired this brand, which was originally introduced in 1977. Its strong and fizzy taste makes it unique carbonated Indian cola. It has the highest market share in the Indian Soft drink industry.
KINLEY WATER:
This is the thirst quenching beverages features fresh the water with the saturated oxygen level.
GEORGIA:
This was first introduced in 2004 it is hot tea and coffee products by Coke it is mostly sold in restaurants and not in the local shops it is being sold both in the hot and the cold beverages format.
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INDRA NOOYI
Chairman of the board and Chief Executive officer ABOUT THE PEPSICO CEO
Nooyi joined PepsiCo in 1994 and was named president and CFO in 2001. Nooyi has directed the company's global strategy for more than a decade and led PepsiCo's restructuring, including the 1997 divestiture of its restaurants into Tricon, now known as Yum Brands. Nooyi also took the lead in the acquisition of Tropicana in 1998, and merger with Quaker Oats Company, which also brought Gatorade to PepsiCo. In 2007 she became the fifth CEO in PepsiCo's 44-year history.
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Business officials rave at her ability to drive deep and hard while maintaining a sense of heart and fun. According to Business Week, since she started as CFO in 2000, the company's annual revenues have risen 72%, while net profit more than doubled, to $5.6 dollars billion in 2006. Nooyi was named on Wall Street Journal's list of 50 women to watch in 2007 and 2008, and was listed among Time's 100 Most Influential People in The World in 2007 and 2008. Forbes named her the #3 most powerful women in 2008. While CEO of PepsiCo in 2008, Indra Nooyi earned a total compensation of $14,917,701, which included a base salary of $1,300,000, a cash bonus of $2,600,000, stocks granted of $6,428,538, and options granted of $4,382,569.
PEPSI PARTNERS
PepsiCo also has formed partnerships with several brands it does not own, in order to distribute these or market them with its own brands. Frappuccino, Starbucks Double Shot, Starbucks Iced Coffee, Mandarin (license), D&G (license), Lipton Brisk, Lipton Original Iced Tea, Lipton Iced Tea, Ben & Jerry's Milkshakes, Dole juices & juice drinks (license), Sunny Delight (produced by PepsiCo for Sunny Delight Beverages)
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7 UP:
7UP, the refreshing clear drink with natural lemon and lime flavour was created in 1929. 7UP was launched in India in 1990 and its international mascot Fido Dido was used for advertising in 1992 to position the brand as a cool drink for youngsters. Fido became an instant hit with his trendy look, laid back attitude and refreshing take on life. During the brands early years in India, 7UP gained market leader status in the lemon lime category by being one of the first to be nationally distributed as well as being marketed as a healthier alternative to other soft drinks
TROPICANA:
Tropicana was founded in Bradenton, Florida, USA, in 1947. And is now enjoyed almost everywhere in the world. Carefully nurtured for over 50 years, it has matured into one of the most respected beverage 30
brands. Today it is the World's no. 1 juice brand and is available in 63 countries. Since 1998, it has been owned by PepsiCo, Inc. Tropicana Premium Gold was re-launched as Tropicana 100% in year 2008
SLICE:
Slice was launched in India in 1993 as a refreshing mango drink and quickly went on to become a leading player in the category. In 2008, Slice was relaunched with a 'winning' product formulation which made the consumers fall in love with its taste. With refreshed pack graphics and clutter breaking advertising, Slice has driven strong appeal within the category.
NIMBOOZ:
Nimbooz was launched in India this year on the 28th of February 2009. Latest addition to portfolio of Pepsi Beverages Nimbooz is a great tasting product which has capitalized on the existing familiarity & behaviour of high frequency consumption of unpackaged / Homemade nimbu pani. It has been true to its Asli Indian Identity by owning and appropriating nimbu Pani Codes such as the Matka (Earthen Pot) and Squeezer.
MOUNTIAN DEW:
The main formula of Mountain Dew was invented in Virginia, named and first marketed in Johnson City, Tennessee and Knoxville, Tennessee in 1948. In India, Mountain Dew set the soft drink category ablaze in 2003 with their iconic launch campaign Cheetah Bhi Peeta Hai. 2007, the brand was re-launched with a completely new, punchier formulation with communication that aimed at forging a strong emotional connect with our audience. Thus came about the "Darr Ke Aage Jeet Hai" campaign, which acknowledged that fear was a very real and relevant aspect of the adventurous world and Mountain Dew, as a brand wanted to encourage all youth in their moment of fear, to believe in themselves and just go for it because beyond fear, lies victory.
MIRINDA:
Now when we think Mirinda, we think orange. But this soft drink brand has many other fruit flavours; Mirinda Lemon was launched in 1998 & other flavours like Apple & Batberry that were launched as in & outs.
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Mirinda has always been about a great orange taste, which is now synonymous with the brand. These were communicated through our great campaigns; the memorable Mirinda Men to Taste Aisa Chaye Character Fisla Jaye.
AQUAFINA:
Aquafina was first launched in USA in the year 1994 and with its unique purification system and great taste; Aquafina soon became the bestselling brand in the country. In India, Aquafinas journey began with the Bombay launch in 1999 and it was rolled out nationally by the year 2000. On the strength of its brand appeal and distribution, Aquafina has become one of India's leading brands of bottled water in a relatively short span.
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The soft drink market all over the world has been witnessing to neck to neck battle between the two major players, coca-cola and he Pepsi since the very beginning. The thirst quenchers are trying to have the major chunk of the pie of carbonated soft drink market. Both the player is spending their energies in building capacity, infrastructure, promotional activities etc. Coca-cola being 11 years older than Pepsi has dominated the scene in most of the soft drink markets in the world and enjoying leadership in terms of market share. But the coca-cola people are finding it hard to keep away Pepsi, which has been narrowing the gaps regularly. The two are posing threats to each other in every nook and corner of the world wide coca-cola has been earning most of its bread and butter through beverages sales, Pepsi has multi products portfolio with some portion from the same business. The two warriors are face to face once again herein India with different strategies and tactics to attack the rivals. Coca-cola is focussing upon the joint venture with the existing bottlers (Fobo) franchise owned bottling operations to enhance its control on manufacturing and marketing of its products range and attain quality standards of its class. Countering its Pepsi has taken the battle of its own hands by floating as investment of $ 95 billion to set Pepsi Company. India holdings, as subsidiaries for (Cobo) company owned bottling operations. Both companies are following different paths to reach the same destination i.e. to grab a bigger portion of aerated soft drink market. Both consider India as a Hugh potential market, as per capita consumption here is mere 3 serving annually against the world average of 80. Therefore, they are putting their best efforts to woo the Indian consumer who has to work for 1.5 hours to buy a bottle of soft drink. In comparison to international norms minutes, a major hurdle to cross over for the athletes for getting no. 1 position comparison to the inter. Coca-cola is well set with its 53 bottling sites through out the country giving it an edge over competition by processing a well-built bottling and distribution set up. On the other hand, Pepsi, with two more years in India, has been able to set as image of a winner in India 33
and has been able to get the pulse of the Indian soft drink market. The soft drink giants are leaving on stone unturned and her for the long terms. Coca-cola has been penetrating the market through its worldwide products range with a determination to change consumption pattern of soft drink in India. Firstly, they upgraded the whole industry by introduction 300ml bottles, which in turn had given the industry a booming growth of 20% as compared to the earlier 5%. They meant to develop a coca culture here and are working on a strategy to offer soft drink in every possible package. In Coca-Cola camp, the idea of competition has not come from Pepsi. But from the other beverages such as tea, coffee, nimbus, pani, water etc. Coke has used a large sum on the visibility of its red and white logo. They have been going along with aggressive marketing by enrolling Amir Khan, Akshay Kumar and their advertisement to endorse their brand, the role models of its targeted consumer the teenagers
Pepsi is quite aggressive in its approach to Indian consumer. They are desperately working on the strategy to be the winner in the hot cola war between two big barons. According to Pepsi philosophy, it is the madness that encourages executive to think, to conjure up those creative tactics to knock the fizz out of their competition. Pepsi have increased the fizz in the market place by introducing the dispensers called fountain Pepsi and have been enjoying a lead over its rival there. Coca-cola on the other hand, has been working in the saying slow and steady wins the races side by retailing to every more of its competitors. They have procured the shield of thumps up with a handsome market share in Indian soft drink market. Countering commercial that used two chimpanzees to rock a snoop at coke, thumps up with the ad line, dont be bender, and taste the thunder Also. Thumps up has been positioned now them very near to that young image of Pepsi and giving it a through time. These cool merchants have put everything on fire. Its coke gets the status of the official drink of the wills. World cup, Pepsi blushes as nothing official about it. As thumps up projected as saare jahan se achcha, pepsi was passionate enough with freedom to be and now the yeh dil maange more when thumps up came with thunder blast, the offered Pepsi stuff card. If red is meant for coke, Pepsi chosen to be blue. In the U.S., its a closer race between coke and Pepsi, said Bonnie Herzog, an industry analyst with smith Barney. But when you take a look outside the U.S.. I think coca-cola has the major lead. Indeed, 75% of Cokes profits now come from the foreign markets it dominates. While back home the slugfest has gone on for decades.
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I think makes us all better, said Pepsi vice president of marketing; Katie Lacey. Its alone thing about working in a very competitive category. You absolutely are on your toes. We do not let it dictate how are or think every day. We are focused on how we are going to grow our brands. With public opinion split, theres is no. of problem for both coke and Pepsi. Volumes of carbonated soft drink I north America is growing at less than one present a year. Meanwhile, sports drinks like Gatorade are growing at 15% year. And bottled water is expending by 26 permanent annually. In a saturated soft drink market; water is where the growth and money are, according to Herzog. For now, Pepsis Aquafina is beating cokes Dasani in the water wars. Its just the latest front in a battle between hundreds of Coke and Pepsi brands. Diet coke vs diet pepsi, sprite vs. mountain dew, nestle vs. Lipton Tropicana vs. minute maid. And the list goes on. But for Pepsi- its not all about drinks. Some 60% of its profits come from its snack business. From Fritos to lays to crack jack and Tostitos, Pepsi has virtual monopoly, with no competition with coca-cola. They are going after the younger consumer who purchase a single serve products, at a convenience store 9-13, said Todd Stender, who fellows the company at Crowell Weedon and co., and thats really where the profits are. Cokes, meanwhile, just scored a big coup by winning the soft drink business at subway, a fast food chain now bigger that McDonalds, that had previously served only Pepsi.
Figure 6.1: Market Share of Indian Beverage Companies [Market Share (in %) 2010]
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Source: Economic Times, org figure The Pi Chart Shows That Coke has a major lead in India Capturing the huge Chunk of the market share while Pepsi on the other hand has very less Market share compared to coke but it is growing.
Table 6.1: Market Share of the Respective Companies [ Market Share (in %) 2010]
PepsiCo (2009-10) Pepsi 13.1 % 7 UP 5.8% Mirinda Lemon 0.4% Mirinda Orange 8.9% Mountain Dew 5.8%
Coca-Cola (2009-10) Coca Cola 8.2% Thums Up 16.4% Sprite 12.2 % Limca 10.9% Fanta 10%
consist of 26% of the market share and thus grabbing a huge piece of the market. Pepsi on the other hand is mostly surviving on its Pepsi cola brand of drinks which consist of 13.1% which has the second largest market share after Thumbs-up. Pepsi has a reason to smile as the 7-up and mountain dew brands are growing fast and capturing the market share slowly but steadily.
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38
Coke
Pepsi
Both
Retailers 72 25 3
Both
Company
Pepsi
25 Retailers 72
Coke
0%
10%
20%
30%
40% Percentage
50%
60%
70%
80%
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It was a rare sight to see a restaurant or a panwala selling both the products. And if you see one then he might be the most hassled person on earth but the retailers of Pepsi are quite few compared to coke in Palampur region. In an area of Vijay Char Rasta alone there is only a single retailer of Pepsi compared to 12 retailers selling Coke
2) Does the soft drink company provide you with refrigeration facilities?
Coke Pepsi
Yes Yes
No No
Yes the company does provide refrigeration facilities to the retailer who has to be an exclusive seller of either Coke or Pepsi. If the person id selling both he might have to purchase the fridge or use his own fridge to sell the product. This is one of the main reasons that there are extremely less retailers who sell both
3) Dose the company provide you with mechanics for the repair and maintenance of fridges?
Coke Pepsi
Yes Yes
No No
The company does provide mechanics and maintenance facilities free of cost to the retailer here no discrimination is done when it comes to the repair and maintenance of the fridges among retailers. The Maintenance and repair of the fridges are done free of cost
Coke Pepsi
Excellent Excellent
Good Good
Neutral Neutral
Bad Bad
Worse Worse
COKE
Table 8.2: Conditions of Bottles of Coke rated by Retailers
Coke 24 36 14 16 10
36
16
41
Rank 1 2 3 4 5
W.A 24 72 42 64 50 252
Here the mean after taking out the weighted average is 2.52 which is exactly the middle mark for coke where the retailers are neither satisfied nor dissatisfied with the quality of bottles that come from coke. They find the quality ok thus that means there is room for improvement for the quality of bottles provided by coke.
PEPSI
42
32
Conditions Pepsi Rank W.A EXCELLENT 22 1 22 GOOD 22 2 44 Weighted NEUTRAL 32 3 96 Mean BAD 14 4 56 2.68 WORSE 10 5 50
100 268
Here the weighted mean average is lower in pepsi than in coke signalling that the quality is a bit less than compared to coke when it comes to bottles. Both the companies have certain rules and regulations considering the refilling of old bottles and then using new bottles. Both the companies sterilises the bottles before reusing them. Here the retailers are more satisfied with the conditions of the bottles of Coke
5) If the bottles are broken in transit or in the shop due to natural causes or calamities then does
the company bear the loss for you? 43
Coke Pepsi
Yes Yes
No No
Here both the companies follow same policy of cap in the bottle. If the bottle is broken in transit the company replaces the bottle and yes the company replaces the bottle any time when it is broken provided the cap of the bottle is still intact.
6) If the products have crossed their expiry dates then dose the company replace the products for
you? Coke Pepsi Yes Yes No No
7) If yes then
Coke Replace at your own cost Buy Back Buy Back Replace products free of charge
The expiration of bottles or people not consuming the drinks is a rare case. But just in case both the companies replace their products if it has crossed the expiration date free of charge.
A particular area consist of maximum 3 to minimum 1 distributor depending on the size and type of area Vatva and Naroda have 3 distributors while Paldi and Ellis bridge have 2 distributors and Vijay char Rasta area or Manager has only 1 distributor for the drinks. In paladin & bhatta Area has one Pepsi Seller and also has one seller Near NID and one in Shantivan which is extremely less compared to Coke
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Table 8.7: Time of Replenishing of Stock By retailers Time Replenish WEEKLY 85 FORTNIGHTLY 15 MONTHLY 0 QUATERLY 0
Replinhment
QUATERLY
0%
MONTHLY
0% 15
FORTNIGHTLY
WEEKLY
85
Time 0 10 20 30 40 50 60 70 80 90
The retailers who replenish fortnightly are mostly users of wending machines where they replenish their stock fortnightly
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The quantity is usually ordered with depending on the demand or the amount the retailers thinks he can sell. Usually the pan walas order 2 to 3 crates. But there were other retailers ordering more or less than the above specified quantity
Satisfied
Neutral
Dissatisfied
Very
Satisfied
Neutral
Dissatisfied
Very
COKE
Replenishment of Coke 23 17 34 24 2
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Replenishment of Coke 23 17 34 24 2
100
Rank 1 2 3 4 5
Replenishment of Coke
24 34 Replenishment of Coke 17
23 25 30 35
The retailers are not satisfied with the replenishment of Coke as retailers who mostly want to sell Thumbs-up or Sprite only are the ones who are unsatisfied with the replenishment of coke as 1 to 2 crates of Coke bottles are pushed along together with thumbs-up or Sprite for the retailers to sell.
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PEPSI
Table 8.10: Satisfaction level of Replenishment of pepsi
Replenishment of Pepsi 12 37 34 17 0
Replenishment of Pepsi 12 37 34 17 0
100
Rank 1 2 3 4 5
Replenishment of Pepsi
0 17 34 Replenishment of Pepsi 37 12 0 5 10 15 20 25 30 35 40
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The Retailers of pepsi are more satisfied with the retailers of coke as there is no pushing incidence when it comes to pepsi. The market for Pepsi is 13% which is the second highest in the country after thumbsup. They give with retailer whatever replenishment they need The retailers are more satisfied with the replenishment of Pepsi rather than coke because the people of Palampur region generally favour Thumbs-Up rather than coke and thus the preference of coke is low compared to thumbs-up so sometimes 1 to 2 cerates are sometimes pushed to the retailer to sell coke unlike Pepsi where it sells the products which the retailer desire
The lead time is one day from the order given. If Order is given on Monday the product ordered arrives at the doorstep of the retailer on the very next day i.e. Tuesday
Satisfied
Neutral
Dissatisfied
Very
Satisfied
Neutral
Dissatisfied
Very
Here the retailers are very satisfied with the lead time and have no negativity about it.
13) Do you place order with the dealer or directly with the company?
Coke Pepsi
Dealer Dealer
Company Company
COKE 49
Coke Coke 60 50 40 45 55
30 20 10 0 Dealership Company
Coke has a mixture of dealership and direct company to middle man dealings. The company has its own dealers and the brand of thumbs-up and sprite which have the highest market share. The company 5 years ago use to deal with the retailers through dealership but now slowly removing with the middle man and directly deals with the retailers
PEPSI
50
Dealership Company
Pepsi 100 0
60 40 20 0 0 dealership Company
PepsiCo does not have direct dealings with the retailers. It first sells it product to the dealers and then from dealers to the retailers. All the grievances and orders or communication for PepsiCo is done by the dealers
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Coke Pepsi
Yes Yes
No No
The company dose gives discounts or gifts in bulk buying. For example the company sometimes give an extra crate of coke depending on the amount of order. Sometimes it may not be in margins or crates of coke but in gifts like a handbag or wall clock or items to or associative needed by the shop
Coke
pay in advance
Here in both the companies the retailers have to pay check to the sales man on arrival of the product.
Satisfied
Neutral
Dissatisfied
Very
Satisfied
Neutral
Dissatisfied
Very
Here the retailers of both the companies are extremely satisfied by the company norms of payment and dont have any negativities about it.
17) Are you satisfied with the margins given to you by the company?
Coke
Very Satisfied
Satisfied
Neutral Dissatisfied 52
Very Dissatisfied
Pepsi
Neutral Dissatisfied
Very Dissatisfied
COKE
Table 8.14: Satisfaction Level in Margin of Coke
Margin of Coke 0 17 49 28 6
Margin of Coke 0 17 49 28 6
100
Rank 1 2 3 4 5
53
6 28 49 17 0 0 10 20 30 40 50
Here the retailers are more dissatisfied with the margin available of coke as they are given maximum Rs 1 to Rs 1.5 and in which they have to pay their own refrigeration electricity. The retailers always came up with the answer that that coke can give more margins to them.
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PEPSI
Table 8.16: Satisfaction Level in Margin of Pepsi
Margin of Pepsi 0 11 60 25 4
Margin of Pepsi 0 11 60 25 4
100
Rank 1 2 3 4 5
55
4 25 60 11
10
20
30 %
40
50
60
Here also the retailers feel the same about Pepsi as they feel that they can receive more margins from the company. Here the retailers are more dissatisfied than satisfied.
18) According to you which factor plays a major role in achieving sales for Coke or Pepsi? (Rank
1-6)
Coke
Pepsi
Brand Name 56
Price
Availability
Loyalty
Quality
Packaging
(Here to solve the above question we used SPSS instead of Excel to solve the question)
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COKE
Table 8.18: Ranked Brand Name Coke
Brand name Cumulative Frequency Valid 1.00 2.00 3.00 4.00 Total 34 19 35 12 100 Percent 34.0 19.0 35.0 12.0 100.0 Valid Percent 34.0 19.0 35.0 12.0 100.0 Percent 34.0 53.0 88.0 100.0
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The brand name of coke is given a mean of 2.25 to coke stating it to be one of the important factors for the sales of coke it has given the least mean to the brand name.
Table 8.19: Ranked Price of Coke
Price Cumulative Frequency Valid 2.00 3.00 4.00 5.00 6.00 Total 6 15 21 28 30 100 Percent 6.0 15.0 21.0 28.0 30.0 100.0 Valid Percent 6.0 15.0 21.0 28.0 30.0 100.0 Percent 6.0 21.0 42.0 70.0 100.0
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The retailers have ranked the price of the coke brand which is the second least a mean of 4.61 stating that price is not a major factor when it comes to bottled beverages of Coke. People do not see the price of the product and buy it. They buy it usually out of thirst or taste of the product
Availability Cumulative Frequency Valid 1.00 2.00 3.00 4.00 5.00 Total 20 30 11 25 14 100 Percent 20.0 30.0 11.0 25.0 14.0 100.0 Valid Percent 20.0 30.0 11.0 25.0 14.0 100.0 Percent 20.0 50.0 61.0 86.0 100.0
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The Availability of coke is a third major contributor to the sales of coke since it is evident that retailers of coke are more than pepsi. So even though a person may be loyal to pepsi but if the availability of retailers of pepsi is less then he will surely sift to coke for the time being. Thus more number of retailers means more sales of coke
Table 8.20: Ranked Loyalty Coke
Loyalty Cumulative Frequency Valid 1.00 2.00 3.00 4.00 6.00 Total 30 23 16 17 14 100 Percent 30.0 23.0 16.0 17.0 14.0 100.0 Valid Percent 30.0 23.0 16.0 17.0 14.0 100.0 Percent 30.0 53.0 69.0 86.0 100.0
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Loyalty is another factor contributing to the sales of coke as a lot of people are loyal to the thumbsup brand and also the sprite and Limca brands of coke as there is a major fan following for some of the brands of coke in India it is able to hold a major part of the market share in India.
Table 8.21: Ranked Quality Coke
Quality Cumulative Frequency Valid 1.00 2.00 3.00 4.00 5.00 6.00 Total 16 22 23 11 22 6 100 Percent 16.0 22.0 23.0 11.0 22.0 6.0 100.0 Valid Percent 16.0 22.0 23.0 11.0 22.0 6.0 100.0 Percent 16.0 38.0 61.0 72.0 94.0 100.0
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Here quality is another important factor in the sales of coke after the pesticide issue and the later enrolment of brand Ambassador Amir Khan for coke the people have again jumped the Coke band wagon. The increasing sales of Coca- Cola are the presence of a legible and a strong brand ambassador and the great improvement in the quality of the products of Coca-cola. It could also be that the pesticide issue was a blessing in disguise of coca-cola
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Packaging Cumulative Frequency Valid 4.00 5.00 6.00 Total 14 36 50 100 Percent 14.0 36.0 50.0 100.0 Valid Percent 14.0 36.0 50.0 100.0 Percent 14.0 50.0 100.0
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Packaging is the least important when it comes to the sales of the bottled products as they do not effect sales at all. People are not induced by packaging at all they just buy the product for the taste brand name and loyalty towards the product
65
Over all you can see the least meaned attribute is Brand name loyalty and then quality which is a big factor that plays a role in the sales of coke. The retailers say that the packaging or the price does not matter to the customers but they should get the product that they liked. And also coke is available almost everywhere it has got more retail chains compared to that of Pepsi The Shopkeepers also told the story of thumbs-up which is has the highest market share in the soft drinks market and coke has got success mainly due to thumbs-up and also mentioned that cokes advertisements are much better than compared to Pepsi.
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PEPSI
Table 8.23: Ranked Brand Name Pepsi
Brand name Cumulative Frequency Valid 1.00 2.00 3.00 4.00 5.00 6.00 Total 26 21 27 17 5 4 100 Percent 26.0 21.0 27.0 17.0 5.0 4.0 100.0 Valid Percent 26.0 21.0 27.0 17.0 5.0 4.0 100.0 Percent 26.0 47.0 74.0 91.0 96.0 100.0
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The brand name of Pepsi is given a mean of 2.66 stating it to be one of the important factors for the sales of the brand; it has given the least mean to the brand name. Compared to coke the brand rating for pepsi is less
Table 8.24: Ranked Price Pepsi
Price Cumulative Frequency Valid 1.00 2.00 3.00 4.00 5.00 6.00 Total 11 17 11 20 10 31 100 Percent 11.0 17.0 11.0 20.0 10.0 31.0 100.0 Valid Percent 11.0 17.0 11.0 20.0 10.0 31.0 100.0 Percent 11.0 28.0 39.0 59.0 69.0 100.0
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The retailers have ranked the price of the PepsiCo brand which is the second least a mean of 4.61 stating that price is not a major factor when it comes to bottled beverages of Coke. People do not see the price of the product and buy it. They buy it usually out of thirst or taste of the product
Availability Cumulative Frequency Valid 2.00 3.00 4.00 5.00 6.00 Total 10 26 27 31 6 100 Percent 10.0 26.0 27.0 31.0 6.0 100.0 Valid Percent 10.0 26.0 27.0 31.0 6.0 100.0 Percent 10.0 36.0 63.0 94.0 100.0
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The Availability rating of Pepsi is much less compared to coke the coke rating is 2.88 while the rating of PepsiCo is 3.97 which are much less compared Coke. Maybe the reasons for less market share is the less availability of pepsi compared to coke
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Loyalty Cumulative Frequency Valid 1.00 2.00 3.00 4.00 5.00 6.00 Total 33 21 17 9 15 5 100 Percent 33.0 21.0 17.0 9.0 15.0 5.0 100.0 Valid Percent 33.0 21.0 17.0 9.0 15.0 5.0 100.0 Percent 33.0 54.0 71.0 80.0 95.0 100.0
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Loyalty is a major factor for the sales of PepsiCo as the retailers suggest that many people like pepsi and stick to it and thats why the presence of pepsi is there in the Indian market there is a huge fan following of the mountain dew brand. The retailers have given a mean rank of loyalty 2.67 to pepsi which is more or less as same as the loyalty rating of coke sometimes bettering the loyalty of coke
Quality
Frequency Valid 1.00 2.00 3.00 4.00 5.00 6.00 Total 21 21 19 16 11 12 100
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The quality of pepsi was never in doubt but here the quality rating of pepsi is given here more ranking compared to coke. The coke quality ranking was given less due to the pesticide issue. Here the mean rank is 3.11 given by the retailers to the brand Pepsi
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Packaging Cumulative Frequency Valid 1.00 2.00 4.00 5.00 6.00 Total 9 10 11 28 42 100 Percent 9.0 10.0 11.0 28.0 42.0 100.0 Valid Percent 9.0 10.0 11.0 28.0 42.0 100.0 Percent 9.0 19.0 30.0 58.0 100.0
Packaging is the least important when it comes to the sales of the bottled products. The retailers have given a mean rank of 4.65 to the packaging of the product, as they do not affect sales at all. 74
People are not induced by packaging at all they just buy the product for the taste brand name and loyalty towards the product
Over all you can see above that the brand name and loyalty being the lowest mean thus we can say that its due to mostly the loyalty that people have for Pepsi And the brand name are the main reasons for the sale of Pepsi brand. The retailers have given a 4 mean for availability stating that the availability of Pepsi is vey less compared to that of coke. This is much evident in the first question that about 72% retailers sell coke while only 25%sell the Pepsi brand. The Packaging has never mattered in the bottled sales of pepsi and coke and also the price. The Main Factors are Availability, Brand Name, Quality and the most important the retention of customers of either particular brands i.e. Loyalty
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WEAKNESS:
1. Lack availability 1 it & 1.5 it product pack. 2. Lack supply of Kinley water in the market. 3. Retailers are unhappy with schemes at any time.
OPPORTUNITY:
1. Coke is able to grab large market share as the Indian consumer base is growing. 2. More monopoly counters of coke brand. 3. To improve market mix (product, price, promotion, place) 4. To increase the sale of Kinley.
THREATS:
1. Pepsi is the major competitors. 2. Pepsi has captured major market of 500ml, 1.5 & 2 it. 3. Retailers divert to Pepsi because they are getting good schemes and SGA signage.
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STRENGTH:
1. Pepsi has a good brand image. 2. Good quality and innovation of product for long term customer relationship. 3. High investment in research and development. 4. Segment of Pepsi product to every age group.
WEAKNESS:
1. Lack of proper distribution in many areas. 2. Lack Of retailers in the market. 3. No of distributors enough to retailers.
OPPORTUNITY:
1. Pepsi has a growing market share and can capture new consumers as the Indian middle class is growing 2. To improve market mix (product, price, promotion, place) 3. To increase the no of retailers who sell the Pepsi brand 4. To capture the growing clout of mountain dew and to hold on to its new followers
THREATS:
1. Coke is the major competitor. 2. The Brand of Thumbs-up and Sprite have a major fan following in India which belongs to coke 3. Coke has higher retailers compared to Pepsi meaning increasing availability of coke
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10.1 Conclusion
Here I can conclude that Coke has a stronger distribution channel than Pepsi. Though coke is not a good satisfier compared to Pepsi as coke as some incidents of pushing its products which retailers do not like to sell. And sometimes coke also does not meet its promises promised to the retailer. Reasons are Coke is available in every street and restaurant Thumbs-up has 16.6%market share which is the highest in India Collectively Sprite (12.2%) thumbs-up (16.6%) Limca (10.9%) Fanta (10%) make up approximately 50% of market share while Pepsi is the only brand with a high market share of 13% followed by Mirinda orange which is at 8%. So the retailers has to sell what the consumers demand and they mostly demand coke products
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Bibliography
1. Naresh Malhotra. (2009):Marketing Research an Applied Orientation, 5th Edition, prentice hall of India.
2. Phillip Kotler (2010): Marketing Management, 13th edition Pearson Education
3.
http://economictimes.indiatimes.com/news/news-by-industry/consproducts/food/Fizzier-
4. http://www.pepsiindia.co.in/brands.aspx retrieved on 31st Jan 2010 5. http://www.pepsiindia.co.in/ retrieved on 31st Jan 2010 6. http://www.coca-colaindia.com/ retrieved on 31st Jan 2010
7. http://www.coca-colaindia.com/brands/brands_home.aspx retrieved on 31st Jan 2010 8. http://www.scribd.com/doc/19814374/Coke-vs-Pepsi retrieved on 23rd Feb. 2010
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ANNEXTURE
Questionnaire
Dear Sir/Madam, I am the student of SRI SAI UNIVERSITY PALMPUR are conducting a project on Channel Satisfaction Comparison of Pepsi & Coke I kindly request you to fill this questionnaire below and assure you that this data will remain confidential.
1) Which soft drinks company products do you sell? Coke Pepsi Both
2) Does the soft drink company provide you with refrigeration facilities? Coke Pepsi Yes Yes No No
3) Dose the company provide you with mechanics for the repair and maintenance of fridges? Coke Pepsi Yes Yes No No
4) What are the conditions of bottles provided by the company? Coke Pepsi Excellent Excellent Good Good Neutral Neutral Bad Bad Worse Worse
5) If the bottles are broken in transit or in the shop due to natural causes or calamities then does the company bear the loss for you?
83
Coke Pepsi
Yes Yes
No No
6) If the products have crossed their expiry dates then dose the company replace the products for you? Coke Pepsi Yes Yes No No
7) If yes then Coke Pepsi Replace at your own cost Replace at your own cost Buy Back Buy Back Replace products free of charge Replace products free of charge
8) How many distributors of the company are there in your area? Coke Pepsi 0-2 0-2 2-4 2-4 4-6 4-6 more than 6 more than 6
10) Are you satisfied with your replenishment you get? Coke Very Satisfied Dissatisfied Satisfied Neutral Dissatisfied Very
11) What is the lead time? Coke Very Satisfied Dissatisfied Satisfied Neutral Dissatisfied Very
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Satisfied
Neutral
Dissatisfied
Very
13) Dose the company give you products you require or they follow their own rules and regulations? Coke Pepsi Yes Yes No No
14) Do you place order with the dealer or directly with the company Coke Pepsi Dealer Dealer Company Company
15) Does the products you order comes from the dealers godown or directly come from the company itself? Coke Pepsi Dealer Dealer Company Company
16) How much time dose it take to process an order? Coke Pepsi 0-2 0-2 2-4 2-4 4-6 4-6 more than 6 more than 6 (days) (days)
17) Any schemes or discounts in bulk buying? Coke Pepsi Yes Yes No No
18) What are the payment conditions of the company? Coke pay in advance Pepsi pay in advance pay on arrival of the product pay on arrival of the product pay to the salesman later pay to the salesman later
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19) Are you satisfied with the payment conditions? Coke Very Satisfied Dissatisfied Satisfied Satisfied Neutral Neutral Dissatisfied Dissatisfied Very Very
20) Are you satisfied with the margins given to you by the company? Coke Very Satisfied Dissatisfied Satisfied Satisfied Neutral Neutral Dissatisfied Dissatisfied Very Very
21) Rank the company from 1 to 5 in the terms of the best margin giver? (1 is the lowest and 5 the highest) 1 Coke Pepsi 2 3 4 5
22) Which company are you more satisfied with? Coke Pepsi None
23) Which products dose the consumer prefers buying? Coke Pepsi None
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24) According to you which factor plays a major role in achieving sales for Coke or Pepsi? (Rank 1-7)
Pepsi
87