COCA COLA V/S PEPSI

INTRODUCTION:
In the modern urban culture consumption of soft drinks particularly among younger generation has become very popular. Soft drinks in various flavors and tastes are widely patronized by urbane population at various occasions like dinner parties, marriages, social get together, birthday calibration etc. children of all ages and groups are especially attracted by the mere mention of the word soft drinks.

With the growing popularity of soft drinks, the technology of its production, preservation, transportation and or marketing in the recent years has witnessed phenomenal changes.

The so-called competition for this product in the market is from different other brands.

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media, particularly the emergence of television, has contribute to a large e!tent of the ever growing demand for soft drinks the attractive "ingles and sport make the large audience remember this product at all times.

It is e!pected that with the sort of mass advertising, reaching almost the entire country and offering various varieties annual demand for the product is e!pected to rise sharply in the times to come.

In any marketing situation, the behavioral # environmental variables relating to consumers, competition and environment are constantly influ!. The competitors in a given industry may be making many tactical maneuvers in market all the time. The may introduce or initiate an aggressive promotion campaign or announce a price reduction. The marketing man of the firm has to meet all these maneuver and care of competitive position of his firm and his brand in the market. The only route open to him for achieving this is the manipulation of his marketing tactics. In today$s highly competitive market place, three players have dominated the industry% The &ew 'ork based (epsi )ompany Inc. The *tlanta based coca- cola and +.,. based )adbury Schweppes.

Through the globe, these ma"or players have been battling it out for a bigger chunk of the ever . growing soft drink market. &ow this battle has been evolved up to India too with the arrival of these three giants. Soft drink industry is on amazing growth% ultimately these are only one person who will determine their fortunes. The Indian consumer the real War to /uench his thirst has "ust begun.

SOFT DRINK INDUSTRY: AN OVERVIEW

It all began in -001, when a tree legged brass kettle in 2ohn Styth pemberton$s backyard in *tlanta was brewing the first ( of marketing legeent +naware the pharmacist has given birth to a caramel colored syrup, which is now the chief ingredient of the world$s favorite drink. The syrup combined

with carbonated the soft drink market. It is estimated that this drink is served more than one thousand million times in a day. 3/ually oblivious to the historic value of his actions was 4rank I!. 5obinson, his partner and book keeper. (emberton 6 5obinson laid the first foundation of this beverage when an average nine drinks per day to begin with, upping volumes as sales grew. In -078, this beverage got into bottle, courtesy a candy merchant from variants of this product like orange 6 <emon. &ow, the soft drink industry has been dominated by three ma"or player . =-> The &ew 'ork based (epsi co. Inc.=?> The *tlanta based coca cola co. =@> The united ,ingdom based )adbury Schweppes. Though out the glove these ma"or players have been battling it. Aut for a bigger chunk of the evergrowing cold drink market. &ow this battle has begun in India too. India is now the part of cold drink war. Bone are days of 5amesh )hauhan, India$s one time cola king and his bouts of pistol shooting. 3!pect now to hear the boon of cannons when the )oca )ola 6 (epsi co. battles it out for, as the Cordon goes a bigger share of throat. 9y buying Aver local competition, the two *merican )ola giants have cleared up the arena and are packing all their power behind building the Indian franchisee of their globe girdling brands. The huge amount invested in fracture has never been seen before. 9oth players seen an enormous potential in his country where swigging a carbonated beverage is still considered a treat, virtually a lu!ury. )onse/uently, by world standards India$s per capita consumption of cold drinks as going by survey results is rock bottom, less than over &eighbors (akistan 6 9angladesh, where it is four times as much. An the other side of coin (epsi has introduced * IT*92 9*)22*& for capturing the lemon market through I5I&D* . <emon with Ezor ka "hatka dhere se lageF. ississippi. 9y the -7:;$s )olas was a daily consumption item, stored in house hold fridges. Soon were born other non- cola

9ut no doubt$ that +, based )adbury is also recognizing its presence. So there is a real crush in the soft drink market. with launch of the carbonated organize drink )rush, few year ago in 9anaras ., the first in a series of a launches , )adbury Schweppes beverage India =)S9I> 2*S (<*&&3DG- The world third largest soft drink marketers all over the country.)S9I o wholly owned subsidiary of the <ondon based H 1.:?billion. )adbury Schweppes is hoping that crush is

going well and well not suffer the same fate as the 5s. -I: crore )adbury India$s apple drink *pella. )S9I is now with orange =crush>, and Schweppes soda in the market.

*s orange drinks are the smallest of non-cola categories that is 5s. --;; crore markets with -;J market share and cola heaving :;J is followed by <emon segment with ?:J. The success of soft drink industry depends upon 8 ma"or factors viz. *vailability Kisibility )ooling 5ange

AVAILABILITY
*vailability means the presence of a particular brand at any outlet. If a product is now available at any outlet and the competitor brand is available, the consumer will go for it because generally the consumption of any soft drink is an impulse decision and not predetermined one.

VISIBILITY
Kisibility is the presence felt, if any outlet has a particular brand of soft drink say- (epsi cola and this brand is not displayed in the outlet, then its availability is of no use. The soft drink must be shown off properly and attractively so as to catch the attention of the consumer immediately (epsi achieves visibility by providing glow signboards, hoarding, calendars etc. to the outlets. It also includes various stands to display (epsi and other flavors of the company.

COOLING
*s the soft drinks are consumed chilled so cooling them plays a vital role in boosting up the sales. The brand, which is available chilled, gets more sales then the one which is not, even if it is more preferred one.

RANGE This is the last but not the least factor, which affects the sale of the products of a
particular company.5ange availability means the availability of all flavors in all sizes.

HISTORY OF COCA-COLA
Con Styth (emberton first introduced the refreshing taste of )oca-)ola in *tlanta, Beorgia it was ay -01- when the pharmacist concocted caramel colored syrup in three.legged brass kettle in his backyard. 2e first distributed the new product by carrying )oca-)ola in a "ug coin en"oys in a glass of )oca-)ola at the soda fountain. Whether by design or accident, carbonated water was teamed with the new syrup, producing a drink that was proclaimed EDelicious and 5efreshingF. Dr. (emberton$s (artner and bookkeeper, r. 4rank 5obinson, suggested the name and

penned as E)oca-)olaF in the uni/ue flowing script that is still famous worldwide today. Dr. (emberton$s sold ?: gallons of syrup, shipped in bright 5ed wooden kegs. 5ed has been a distinctive color associated with the &o.- soft drink brand ever since. 4or his efforts, Dr. (emberton grossed H :; and spent H I@.71 on advertising, by -07-, *tlanta chemist as a B.)anler had ac/uired complete ownership of the )oca-)ola business. 2e purchases it from the Dr.(emberton family for H ?@;;. With in 8 year his merchandising flair helped to e!pand the consumption of )oca-)ola to over H?: million. 5obert W. woodruff become the president of the )oca-)ola company in -7?@ and his more than si! decades of leadership took the business of commercial success making )oca-)ola an institution the world over. )oca-)ola begins as a never tonic, but candy merchant Coseph *. 9iedenharn of

ississippi was looking for awry to serve refreshing beverages. 2e responded to this demand began offering bottle )oca-)ola using syrup shipped from *tlanta, during a hot summer in -078. -77;s L &ew and growing markets (olitical and economic changes opened vast markets that were closed or underdeveloped for decades. *fter the fall of the 9erlin Wall, the )ompany invested heavily to build plants in 3astern 3urope. *nd as the century closed, more than H-.: billion was committed to new bottling facilities in *frica. ?-st )entury L The )oca-)ola bottling system grew up with roots deeply planted in local communities. This heritage serves the )ompany well today as people seek brands that honor local identity and the distinctiveness of local markets. *s was true a century ago, strong locally based relationships between )oca-)ola bottlers, customers and communities are the foundation on which the entire business grows.

COCA COLA COMPANY PROFILE

,eeping in view of tapping the Indian soft drink market and also developing soft drinks as a drinking product among Indians. The )oca-)ola in India has setup an independent organizations which is 2.).) 6 9.).) with a capital of @:; +.S.H each by virtue of sellout decision of the passed managing director Sh. S. ). *ggarwal. 2industan )oca-)ola bottling =&-W> (vt. <td. &a"ibabad took the complete possession of this plant, land, machinery, 6 intellectuals on 4ebruary -8$ -770 and since then 2.).), looking after all its affairs under company owned bottling plant to establish integrated marketing system in the area.

CORE BRANDS:
)oca-)olaG Developed in a brass pot in -001, coca-cola is the most trademark around the globe. &ot to mention the drink in the world. recognized and admired best selling soft

SpriteG In -71-, a citrus-flavored drink made its +.S debut, using

ESprite 9oy Eas

inspiration for its name. This elf with silver hair and a big smile was used in -78;s advertising for )oca-)ola. Sprite is now the fastest growing ma"or soft drink in +.S and the world$s most popular lemon-lime soft drink.

4anta G The name Efanta E was first registered as a trademark in Bermany in -78- ,when it was used for a few year for a soft drink created from available materials and flavors . The name was then revived in -7:: in &aples, Italy, when it was used for theGF fanta Eorange drink we know today. It is now the trademark name for a line of flavored drinks around the world. Diet cokeG The e!tension of the coca-cola name began in -70? with the introduction of diet coke =also called coca-cola light in some countries>. Diet coke /uickly becomes the number . one selling low .calorie soft drink in the world.

FABULOUS FACTS ABOUT COCA-COLA

-. The world$s largest spherical coca-cola sign is in &agoya, Capan a top the dial . &agoya

building in front of the &agoya railway station. The sing is a double sphere constructed from more then 81 tone of steel, more 78;meter of neon tubing, and more then, 0I7 light bulbs. The outer shape features the coca-cola logo and contour bottle, while the inner sphere portrays a comic scene with twinkling planets and stars. ?. Ane of the world$s largest signs for coca-cola is located on a hill called E3<2*)2*F in

*merica, )hile. It is 8;; feet wide and -@- feet high and is made from I;,;;;, ?1 ounce bottles. @. The first out door paint sign advertising coca-cola still e!ists. It was painted in -078 in

)artersville, Beorgia. 8. )oca-cola is one of the world$s most recognizable trademarks recognized in countries

that account for 70 percent of the world$s population.

:. person. 1.

If all the coca-cola ever produced were in 0- ounce bottles. *nd these bottles were

distributed to each person in the world. There would be 1I0 bottles or over 8? gallons for each

If all the coca-cola ever produced were in 0 . ounce bottles, placed side by side and end

to end to from a lane highway, it would wrap around the earth 0? times. I. If all the coca-cola ever produced were flowing over &iagara fall at its normal rate of -;:

million gallons per second instead of water, the falls would flow for about a day and a half @0 hours and 81 minutes. 0. The largest representation of the world$s best known package -;; foot tall glass contour

bottle is located at world of coca-cola, <*S K3B*S

HIST ORY IN INDIA

Coca-cola ! I!" a

)oca-)ola, the corporation nourishing the global community with the world$s largest selling soft drink concentrates since -001, returned to India in -77@ after a -1 year hiatus, giving new thumbs up to the Indian soft drink market. In the same year, the )ompany took over ownership of the nation$s top soft-drink brand and bottling network. It$s no wondering our brands assumed an iconic status in minds of world$s consumers.

A H#al$%& G'o($% $o $%# I!" a! Eco!o)&

3ver since, )oca-)ola India has made significant investments to build and continually consolidate its business in the country, including new production facilities, waste water treatment plants, distribution systems, and marketing channels. )oca-)ola India is among the country$s top international investors, having invested more than +SH - billion in India in the first decade, and further pledged another +SH-;; million in ?;;@ for its operations.

A P*'# Co)) $)#!$ $o $%# I!" a! Eco!o)&

The )ompany has shaken up the Indian carbonated drinks market greatly, giving consumers the pleasure of world-class drinks to fill up their hydration, refreshment, and nutrition needs. It has also been instrumental in giving an e!ponential growth $o $%# country$s "ob listings.

C'#a$ !+ E!o')o*, -o. O//o'$*! $ #,

With virtually all the goods and services re/uired to produce and market )oca-)ola being made in India, the business system of the )ompany directly employs appro!imately 1,;;; people, and indirectly creates employment for more than -?:,;;; people in related industries through its vast procurement, supply, and distribution system. The Indian operations comprises of :; bottling operations, ?: owned by the )ompany, with another ?: being owned by franchisees. That apart, a network of ?- contract packers manufactures a range of products for the )ompany. An the distribution front, -;-tonne trucks . open bay three-wheelers that can navigate the narrow alleyways of Indian cities . constantly keep our brands available in every nook and corner of the country$s remotest areas. These are only some of the facts that speak about our commitment to the growth of the Indian 3conomy

PROMISE BY COCA-COLA
The coca-cola company e!ists to benefits and refreshes every one it touches. The basic proposition of our business is simple, solid and timeless. When we bring refreshment, value, "oy and fun to our stakeholders then we successfully nurture and protect our brand, particularly coca-cola. That is the key to fulfilling our ultimate obligation to provide consistently attractive to the owner so four business.

ore then a billion times every day, thirsty people around the world reach for coca-cola products for refreshment. They deserve the highest Muality . every time. Aur promise to deliver that /uality is the most important promise we make. and it involves a world-wide , yet distinctively local , network of bottling partner , supplier , distributor and retailers whose success is paramount to our own. Aur investment in local communities in over ?;; countries totals billions of dollars in "obs, facilities, marketing, the purchase of local good and services, and local business partnership. *lways and every where , we pursue continuous innovation in the products we offer the processes we use to make them, the package we develop and the way we bring them to market .

BRANDS IN INDIA

BRAND IN INDIAN ORIGIN

BA<D S(ATG this orange carbonate soft drink was introduced in the early -7:;c, and ac/uired by the )oca-)ola company in -77@, its tangy taste has been popular with Indian teenagers

<I )*G

It is thirst-/uenching beverage features a fresh and light lemon-lime taste and

lighthearted attitude. The limca brand was introduced in -7I- and ac/uired by the coca-cola company in -77@.

**N*G

aaza, launched in -708 and ac/uired by the coca-cola company in -77@, is a non

carbonated mango soft drink with a rich, "uice 6 natural mango taste.

T2+ (S +(G in -77@, the )oca-)ola company ac/uired this brand, which was originally introduced in -7II. Its strong and fizzy taste makes it uni/ue carbonated Indian cola.

PEPSICO

(epsi)o is one the largest companies in the +.S. It figures amongst the largest -: companies worldwide according to the number of employees hired. It has a +.S. 4ortune rank of :;.The company profits for -77I were H?.-8 billion on revenues of H?;.7? billion and (epsi is bottled in nearly -7; countries. (epsi)o is a world leader in convenient snacks, foods and beverages with revenues of more than H8@ billion and over -70,;;; employees. Take a "ourney through our past and see the key milestones that define (epsi)o. (epsi)o is a world leader in the food chain business. It consists of many companies amongst which the prominent once are (epsi-)ola, 4rito-<ay and (epsi 4ood International. The group is presently into two of the most profitable and profitable and growing industries namely, beverages and snack foods. It has scores of big brands available in nearly -:; countries across the globe. The group has established for itself once of the strongest brands in various segments of its operations. The beverages segment primarily markets its (epsi, Diet (epsi, ountain Dew and other brands

worldwide and I-+( outside the +.S. markets. These are positioned in close competition with

)oca-)ola Inc. of +S*. * point which is worth a mention is that )oca-)ola gets 0;J of its profits for International operations while the same figure for (epsi)o stands at 1J. The segment is also in the bottling plants and distribution facilities and also distributes the ready to drink tea products of <ipton in &orth *merica. In a "oint venture with orient spray "uice products (epsi)o also manufactures and distributes fruit "uices. The snack food division manufactures and distributes and markets chips and other snacks worldwide. The international operations of this segment e!tend to the markets of and )anada. 4rito-<ay represents this segment of (epsi)o. The restaurant segment earlier primarily consists of the operations of the worldwide (izza 2ut, Taco 9ell and ,4) chains. (4S. (epsi company$s restaurant distribution operation, supplies company owned and franchise restaurants in the +.S. The company ventured into restaurant business with Taco 9ell, ,4), (izza 2ut ended last year when they were spanned off from the company. * packaged goods company comprised of (epsi-)ola )ompany and 4rito-<ay will continue to bear the (epsi)o name. The move should enhance both corporations ability to prosper with their own fully dedicated structure and management team. e!ico, the +,

PEPSICO IN INDIA

(epsi)o gained entry to India in -700 by creating a "oint venture with the (un"ab governmentowned (un"ab *gro Industrial )orporation =(*I)> and Koltas India <imited. This "oint venture marketed and sold <ehar (epsi until -77-, when the use of foreign brands was allowed% (epsi)o bought out its partners and ended the "oint venture in -778. Athers claim that firstly (epsi was banned from import in India, in -7I;, for having refused to release the list of its ingredients and in -77@, the ban was lifted, with (epsi arriving on the market shortly afterwards. These controversies are a reminder of OIndiaPs sometimes acrimonious relationship with huge multinational companies.O Indeed, some argue that (epsi)o and The )oca-)ola )ompany have Obeen ma"or targets in part because they are well-known foreign companies that draw plenty of attention.O In ?;;@, the )entre for Science and 3nvironment =)S3>, a non-governmental organization in &ew Delhi, said aerated waters produced by soft drinks manufacturers in India, including multinational giants (epsi)o and The )oca-)ola )ompany, contained to!ins, including lindane, DDT, malathion and chlorpyrifos Q pesticides that can contribute to cancer, a breakdown of the immune system

and cause birth defects. Tested products included )oke, (epsi, I +p,

iranda, 4anta, Thumps +p,

<imca, and Sprite. )S3 found that the Indian-produced (epsiPs soft drink products had @1 times the level of pesticide residues permitted under 3uropean +nion regulations% )oca )olaPs @; times. )S3 said it had tested the same products in the +S and found no such residues. 2owever, this was the 3uropean standard for water, not for other drinks. &o law bans the presence of pesticides in drinks in India. The )oca-)ola )ompany and (epsi)o angrily denied allegations that their products manufactured in India contained to!in levels far above the norms permitted in the developed world. 9ut an Indian parliamentary committee, in ?;;8, backed up )S3Ps findings and a government-appointed committee, is now trying to develop the worldPs first pesticides standards for soft drinks. )oke and (epsi)o opposed the move, arguing that lab tests arenPt reliable enough to detect minute traces of pesticides in comple! drinks. *s of ?;;:, The )oca-)ola )ompany and (epsi)o together hold 7:J market share of soft-drink sales in India. (epsi)o has also been accused by the (uthussery panchayat in the (alakkad district in ,erala, India, of practicing Owater piracyO due to its role in e!ploitation of ground water resources resulting in scarcity of drinking water for the panchayat residents, who have been pressuring the government to close down the (epsi)o unit in the village. In ?;;1, the )S3 again found that soda drinks, including both (epsi and )oca-)ola, had high levels of pesticides in their drinks. 9oth (epsi)o and The )oca-)ola )ompany maintain that their drinks are safe for consumption and have published newspaper advertisements that say pesticide levels in their products are less than those in other foods such as tea, fruit and dairy products. In the Indian state of ,erala, sale and production of (epsi-)ola, along with other soft drinks, was banned by the state government in ?;;1, but this was reversed by the ,erala 2igh )ourt merely a month later. 4ive other Indian states have announced partial bans on the drinks in schools, colleges and hospitals

PEPSI CO INDIA: A FORTUNE 011 COMPANY IN INDIA

(epsi)o, which ranks among the world$s five largest food and beverage companies with -1 brands, and its partners have invested more than +SH I;; million in India building businesses, which today provide direct or indirect employment to more than 1;,;;; people. Since (epsi$s entry into the Indian market in -707, several brands from its portfolio have become established category leaders. 9rand (epsi is now the ?nd biggest brand in the country. (epsi)o$s portfolio of beverage brands in India includes the flagship cola brand (epsi% Diet (epsi% two flavors of and <emon% I+(% irinda . Arange ountain Dew% packaged drinking water - */uafina% variants of

the fruit drink brand Slice% the -;; per cent fruit "uice brand Tropicana in several variants and the world$s leading sports drink Batorade.

P#/, - Y#% Ha Yo*!+ ,$a! M#' -aa!

BRAND HISTORY
(epsi is a hundred year old brand loved by over ?;; million people worldwide. The largest single selling soft drink brand in India is the ubi/uitousPsocialiserPat every occasion.

'oungistan loves it. ?;; million people worldwide love it. 9ut what has made (epsi

the single largest selling soft drink brand in India is actually a formula concocted a century ago in a far away continent.

-001, +nited States of *merica. )aleb 9rad man, the man with a plan, got on to

formulate a blockbuster digestive drink and decided to call it 9rad$s drink. It was this doctor$s potion that was to become (epsi )ola in -070, and eventually, (epsi in -7;@.

(epsi has always played on the front foot and since its inception has come out with y

revolutionary concepts like Diet, ?< bottles, recyclable plastic cola bottles and the enviable )an.

BRAND ADVANTAGE

(epsi has become a friend to the youth and has led many youth cultures. 'oungsters

over the generations have grown up with (epsi and share an emotional connect with it, unlike any other cola brand. 9e it parties, hangouts, or "ust another day at home, a day is never complete without the fizz of (epsiR

(epsi, )ricket and 9ollywood have been "oined at the hip since the beginning. Shah . S. Dhoni, Cohn *braham, 5anbir ,apoor and Deepika (adukone are

5ukh ,han, Sachin Tendulkar, Saif *li ,han, *mitabh 9achchan, ,areena ,apoor, (riyanka )hopra, Kirender Sehwag,

a few celebrities who will go any length for a chilled (epsi. The (epsi y )an is undoubtedly the most popular cola pack of all times. It is not "ust a pack but a style statement for today$s youth.

PEPSI PRODUCTS IN INDIA

SLOGANS USED BY PEPSI COMPANY

-070 9radPs Drink -7;@ 3!hilarating, Invigorating, *ids Digestion -7;1 Ariginal (ure 4ood Drink -7;0 Delicious and 2ealthful ?;;@G OItPs the )olaO#ODare for oreO =(epsi )ommercial>

?;;@-?;;:G O'eh (yas 2ai 9adiO =2indi meaning OThis thirst is too muchO> =India> ?;;:-?;;1G O*n ice cold (epsi. ItPs better than se!RO

?;;1-?;;IG OWhy 'ou DoggingP

eO#OTaste the one thatPs forever youngO

?;;I-?;;0G O ore 2appyO#OTaste the once thatPs forever youngO ?;;0G O'eh 2ai 'oungistan and (akistan> ?;;0G O(epsi StuffO Super 9owl )ommercial ?;;0G O(epsi is S-O TK commercial ?;;0G O(epsify karo gaiRO )ommercial =2indi meaning OWanna (epsifyRO> ?;;0-?;;7G OSomething for 3veryone.O ?;;7-presentG O5efresh everythingO and =during many commercials> O3very Beneration 5efreshes the WorldO eri CaanRO 2indi - meaning OThis is the 'oung era my dearO =India

THE RIVARLY BEGINS:

Co3# Co)#, $o I!" a
)oca-)ola comes to India with fanfare in the fifties. 4or a number of days, The 2industan Times and other newspapers of &ew 9anaras carried full page advertisement showing a big boy in uniform with a soft-drink crown as the cap. There was no indication of the product. *fter a few days, )oke was introduced. It was an entirely new drink which fascinated people. It soon became the national drink. 4or the first time, a soft-drink was available from one corner of the country to another. The person who brought )oca-)ola to India was the father of late Sardar )haran"it Singh, Sardar society. ohan Singh. * practical man ohan Singh realized that to popularize )oca-)ola, and make it a best seller it was necessary to Ecatch them young.F So he focused on youngsters in the

The company realized that to become a mass consumption product, one has to go to the village. They gave much importance to the distributive network. The company trucks supplied coke to even the remotest village. 4ew products appears to be more similar than soft drinks, yet the )ola wars that mark the competition between )oke and (epsi show how even organizations with highly similar product can be differentiated by their business strategies. Then comes battles over the issue of bottle size standardization. )oke the arch rival tried to offering more )ola at a lower price. (epsi which had some of its early investment tied up in ?:;ml bottles, went the fountain way. The Beneral bottle size freed has settled at @;; ml. -;; ml more than the pre still preserve the fizz. It poured in vast sums to whip up its visibility at the retail level, so that consumers were greeted virtually at every street corner by (epsi$s blue, red and white colors, because they have perception Ethe thing on display Sells more.F )oca-)ola is, finally, redoing the real thing to the replicate the success that it$s arch-rival, (epsi)o. 2as achieved with its fast and furious marketing. 9ut to win them, )oke is copying (epsi. &) standard. 4ountain mi! dispensers, carry home bottles, even -.:; plastic bottle with caps good enough to keep them lying down and

MARKETING STATEGIES OF COKE AND PEPSI

PRODUCT )oke was launched in India in *gra, Actober ?8, in P7@P, soon after its traditional all Indian launch of its )ola. *t the sparking new bottling plants at 2athra, near *gra. )oke was back with a bang after its e!it in -7II. )oke was planning to launch in ne!t summer the orange drink, 4anta-with the clear lemon drink, sprite, following later in the year.

)oke already owns more brands than it will over need, since it has bought out 5amesh )hauhan. )oke "ust needs to "uggle these brands around de!trously to meet its ob"ectives, to ensure that (epsi does not gain market share in t Today, )okePs product line includes, )oca-)ola, Thumps +p, 4anta, Bold Spot, PACKAGING )oca-)ola India <imited =))I<> has bottled its )ola drink in different sizes and different packaging i.e., ?;; ml bottle, @;; ml. 9ottle, @@; ml. )ans, :;; ml. 9ottle fountain (epsi, and bottles of - and ? litre. PRODUCT POSITIONING Ane important thing must be noticed that Thumps +p is a strong brand in western and southern India, while )oca )ola is strong in &orthern and 3astern India. With volumes of Thumps +p being low in the capital, there are likely chances of )oca )ola slashing the prices of Thumps +p to 5s. : and continue to sell )oca )ola at the same rate. *nalysts feel that this strategy may help )oke since it has ? )ola brands in comparison to (epsi which has "ust one. Thumps +p accounts for 8;J of )oca )ola companyPs turn over, followed by )oca )ola which has a ?@J share and <imca which accounts for -IJ of the turn over of the company. =Thumps up being the local drink, its share in the market is intact, forcing the company to service the brand, as it did last year r. Donald short )3A, )oca )ola India, said that, O we will be absolutely comfortable if Thumps +p is &o. - brand for us in India in the year ?;;;. We will sell whatever consumers want us toO. )oca )ola India has positioned Thumps up as a beverage associated with adventure because of its strong taste and also making it compete with (epsi as even (epsi is associated with adventure, youth. aaza, )itra, Sprite, 9isleri )lub Soda and Diet )oke.

.4 PRICE
The price being fi!ed by industry, leaving very little role for the players to play in the setting of the price, in turn making it difficult for competitors to compete on the basis of price.

The fi!ed cost structure in )arbonated Soft Drinks Industry, and the intense competition make it very difficult to change or alter the prices. companyPs are almost unavoidable. The various costs incurred by the individual These being the costs of concentrates, standard bottling

operations, distributor and bottlers commissions, distribution e!penses and the promotional and advertising e!penditure =*s far as )oke is concerned, it had to incur a little more than (epsi as (epsi paved its way to India in -707 while )oke made a come back in -77@.> )urrently a @;; ml. )oke bottle is available for 5s. 1 to0 The @@; can was initially available for 5s. -@ and now, since the price has gave up to 5s. -0 per can. The prices of :;; m, - litre. *nd ?ltr being 5s. -: 5s. ?@ and 5s. 8; respectively =according to the current survey>. Dating back to T7@P, when (epsi hiked the price of (epsi - )ola from 5s. : to 5s. 1 per ?:; ml. bottle in some parts of the country-including *gra. )oke penetrated the market with price of 5s. : for a @;; ml. bottle, making it cheaper by 5s. - and :; ml. than (epsi. )okePs strategy at that time being able to e!pand the availability of soft drinks even in rural India. )okePs priority being to first increase the number of drinks per drinker, and then the number of drinkers itself. (epsi also tried this but was trapped by a series of competitive price increase and changes in bottle sizes by (arle. 9ut the prices of soft drinks have shot up since (epsiPs arrival and the current prices are being mentioned as under.

P' c# l ,$
Na)# Co3# P#' Bo$$l# Co3# Co3# Co3# Bo$$l# S 5# 711 )l 811 )l 011 )l 6Pla,$ c / Gla,,4 7 l $'# 91 77 :1 MRP 6 ! R,24

D #$ Co3# 6Ca!4 Co3# 6Ca!4

881 )l Ca! 881 )l Ca!

80 8;

2owever, the trends may have been in the early P7;Ps, now the prices of (epsi and )oke are the same making it difficult in future and present to compete on the basis of price.

c4PLACE
)oke may have gained an early advantage over (epsi since it took over (arle in -778. 2ence, it had ready access to over ?, ;;,;;; retailer outlets and 1; bottlers. )oke was had a better distribution network, owing to the wide network of (arle drinks all over India. )oke has further e!panded its distribution network. )oke and its product were available in over ?, :;,;;; outlets =in contrast with (epsiPs ?, ;;,;;;>. )oke has a greater advantage in terms of geographical coverage. 9ut )oke has had problems with its bottlers as the re/uired profits for the bottlers have not been forthcoming. This is more so because )oke has hiked the price of its concentrate by 5s. 0 4urther, )okePs operations in India are -;;J 4obs. &ow, it plans to convert then into )A9As. This is straining the relationship between the )oke and its bottlers. The company had decided to create a fund to reimburse performing bottlers for the e!tra costs incurred on account of the hike in prices of soft drink concentrates. r. Short also realized that India is a price sensitive market and the company would have to absorb in the increase in e!cise duty and said that in the long run )oke will have to slash prices for the benefit of the consumers and said that they were considering a cut in the prices of their fountain soft drinks.

)oke and (epsi have devised strategies to get rid of middlemen in the distribution network. 2owever, :;J of the industry unfortunately depends on these middlemen. *s of now, around -;; agents are present in 9ananas. 9ottlers of the ? multinationals have strongly felt the need to remove these middlemen from the distribution system, but very little success has been achieved in doing so.

D4 PROMOTION
It must be remembered that soft drinks purchases are an Oimpulse buy low involvement productsO which makes promotion and advertising an important marketing tool. The ? arch rivals have spent a lot on advertising and on promotional activities. To promote a brand and even to spend a lot on advertising, the company must be aware of the perceived /uality of the brand, its brand power =if at all there is> since consumers make purchase decision based on their perceptions of value i.e., of /uality relative to price. *ccording to (aul Stobart, *dvertising encourages customers to recognize the /uality the company offers. (rice promotions often produce short-term sales increases. )oca )ola has entered new markets and also developing market economics =like India> with muchneeded "obs. )oke attributes its success to bottlers, the )oca )ola system itself, i.e., its e!ecutive committees, employees, 9AD, company presidents but above all from the consumer. )okePs red color catches attention easily and also the Diet )oke which it introduced was taking the )ake, as (epsi has not come out with this in India. 3ver since )okePs entry in India in -77@, )oke made a come back =after /uitting in -7II>, in Actober ?8 in *gra, the city was flooded by trucks, there wheelers, tricycle cards-all with huge red

)oke-emblazoned umbrellas. 5etailers were displaying their )oke bottles in distinctive racks, also with specially-designed icebo!es to keep )oke bottles cold. This was one big "olt to (epsi.

STRATEGIES ADOPTED BY COKE AND PEPSI

T%# P#/, P'oc#,,: Despite being a global brand, (epsi has built its success on meeting the
Indian consumer$s needs, particularly in terms of making the brand synchronize with localized events and traditions. Instead of harping on its global lineage, ergo, it tries to plug into ethnic festivals, use the vernacular indifferent part of the country, and blend into the local fabric. (epsi is using both national campaigns-such as the Drink (epsi, Bet Stuff scheme, which offers large discounts on other products to (epsi-buyers as well as local.

T%# Co3# Co/&: Instead of creating a bond with the customers through small but high-impact
events, )oca-)ola chose to associate itself with national and international mega events like the World )up )ricket, -771, and world cup football -770. 9ut now coke is also entering into local actions. )oke is also trying to make their brand synchronize with localized events traditions and festivals. )oca-)ola new tag line in this advertisement is E5eal shopping, real refresherF. In this way )oke is copy (epsi.

EMPOWERMENT
T%# P#/, P'oc#,,: Ance of the strongest weapons in (epsi$s armory is the fle!ibility it has
empowered its people with. 3very manager and salesperson has the authority to take whatever steps he, or she, feels will make consumers aware of the brand and increase its consumption.

T%# Co3# Co/&: 4le!ibility is the weapon that )oca-)ola, fettered as it is by the need for
approvals from *tlanta for almost everything. In the past, this has shown up in its stubborn insistence on "unking the franchisee network it had ac/uired from (arle% in its dependence on its own feedback mechanism over that of its bottlers%$ and on its head/uarters-led approach.

PRICE
T%# P#/, /'oc#,,: (epsi has consistently wielded its pricing strategy as in invitation to
sample, aiming to turn trial into addiction. It launched the :;; ml bottle in -778 at 5s. 0 versus Thumps +p$s 5s. 7, in *pril, -771, its -.: liters bottle followed )oke into the marketplace at 5s. @; . 5s : less than )oke$s .9ut it couldn$t continue the lower price positioning for long.

T%# Co3# Co/&: Initially, coke carbon-copied the strategy by introducing its @@;ml cans in
Canuary -771, at an invitation price of 5s. -: before raising it to 5s. -0. 9y this time, it had realized that the )oca-)ola brand did not hold enough attraction for customers to fork out a

premium. The ?;;ml )oke, launched so far in parts of eastern, western, and northernIndia, is priced at 5s. :, lowering the entry-barriers. Too really drive the market, as )oke wants to you must go down to 5s. @$.

PEPSI VS2 COKE

<7; BILLION 87= ? RS2 0OO CRORES

TURNOVER INT2 SALES AS = OF TOTAL SALES TOTAL INVESTMENT IN INDIA

<9: BILLION >1=

RS2 701 C

RS2 811 CRORES

PROPOSED INVESTMENTS

RS2 7@A11C

7A11

NO2 OF EMPLOYEES

9A1

98

NO2 OF OWNED BOTTLING PLANTS

NIL

9; A111 N2A2

NO2 OF FRANCHISES NO2 OF FOUNTAIN TOTAL INVESTMENT BY BOTTLERS

08 9011 R, 970 CR

NEW PLANTS PLANNED

N2A2

PEPSI AND COKE MARKET SHARE IN INDIA

COLA WARS
COCA-COLA V/S PEPSI

OVER A CENTURY OF COLA SLOGANS@ COMMERCIALS@ BLUNDERS@ AND COUPS

TherePs little doubt that the most spirited and intense competition in the beverage world is between )oca-)ola and (epsi. These two *merican companies long ago took their battle worldwide, and although there are other colas in the market, these giants occupy this high-stakes arena by themselves. The impact of )oke and (epsi on popular culture is indisputable, and I have observed in my time managing this web site that *merica has not become "aded about the cola wars. The memorabilia, the "ingles, the trivia - all still popular. So I am offering this page in an attempt to assuage a wee bit of the )oke and (epsi thirst that is thriving on our planet.

IT ALL STARTED 2 2 2 2
)oca-)ola was invented and first marketed in -001, followed by (epsi in -070. )oca-)ola was named after the coca leaves and kola nuts Cohn (emberton used to make it, and (epsi after the beneficial effects its creator, )aleb 9rad ham, claimed it had on dyspepsia. 4or many years, )oca)ola had the cola market cornered. (epsi was a distant, no threatening contender. 9ut as the market

got more and more lucrative, professional advertising became more and more important. These soda companies have been leading the way in advertising ever since.

ADVERTISING HISTORY B COMMERCIALS

(epsi has definitely leaned towards the appeal of celebrities, popular music, and young people in television commercials, while )oke relies more heavily on images of happiness and togetherness, tradition, and nationalism, perpetually trying to cash in on its original lead. In a simplified sense, you could sum up the strategies as Coke: Old, Pepsi: New. In fact, as we will see, when )oca-)ola tried something new, it was disaster. The first magazine ad for )oca-)ola appeared in Munsey's in -7;?. *dvertisements began to appear on billboards, newspapers, and streetcars. Soon there were serving trays with images of people en"oying )oca-)ola, and glasses with the colaPs name on them. *t this time, )oca-)ola and (epsi were served in drugstore soda fountains. In -7;7, (epsi used its first celebrity endorser, automobile race driver 9arney Ald-field, in newspaper ads. In -7?-, (epsi went bankrupt, but continued to appear on the scene, although not nearly so successfully as )oca-)ola. In -7@-, (epsi went bankrupt again, but the new owner, 5oy egargel, would hit upon an idea that would finally give )oca-)ola some competition. In -7@8, he marketed (epsi in a -?-ounce bottle for a nickel. *t the time, )oca-)ola was sold in a 1-ounce bottle for ten cents. KoilaR (rofits for (epsi. (epsi racked up another first by airing the first radio "ingle in -7@7. It was so popular that it was played in "ukebo!es and became a hit record )oca-)ola hit the airwaves in -78-. In -781, inflation forced (epsi to increase prices. *nd in -7:;, (epsi offered a larger ?1-ounce bottle to court the young *merican housewife.

In the -71;Ps, the cola ad wars moved to television. )oca-)ola employed a host of celebrity singers to promote the product, including )onnie 4rancis , Tom Cones, The &ew 9eats, &ancy Sinatra, and The Supremes. *s we moved through the years, both colas incorporated some of their best slogans =O(epsi BenerationO and Othe 5eal ThingO> into subse/uent commercials. In the -7I;s, market research showed that consumers preferred the taste of (epsi over )oke. The (epsi )hallenge is still being conducted today. 9ut )oke came up with what is arguably the best of all cola commercials, the -7I- IPd like to buy the World coke ad.

This landmark was recalled in )hristmas versions in -70@ and -708, and a -77; Super 9owl ad, which was enough to make some 9aby 9oomers weep with nostalgia. (epsi, meanwhile, had its own flop, )rystal (epsi, which was supposed to catch the strange wave of the times when everything colorless was clean and desirable =Nima, bottled water>. *nd then there was (epsi <ite with the lemony flavor and one calorie, introduced in -7I:. 5emember that oneU *pparently they didnPt e!pect us to because later they gave us (epsi Ane, using the same concept, but a completely different taste. *nd, e!tending the idea even further, we are now getting (epsi Twist, a new product with a twist of lemon flavor. In -77-, 5ay )harles sang, O'ou got the right one baby, uh-huhRO *lso in the -77;s, )indy )rawford and the Spice Birls pitched (epsi. *nd then (epsi aired commercials featuring the aggravating little girl =2alide 3isenberg> with her troubling male voice. In the new century, both colas continue to battle it out on the television screen. *nd celebrities continue to be important promoters. 5ecently, (epsi has had commercials by 9ob Dole and 4aith 2ill, among others.

SLOGANS
ItPs clear in looking at the slogans over the years that )oke and (epsi have very different targeting strategies. )oke is touting itself as the original, the authentic, and appealing to a sense of tradition, positioning itself as an integral part of daily *merican life. (epsi, on the other hand, is promoting itself as something new, young, and hip, which seems a little odd after over -;; years. 9ut )oke was first, after all. (epsi has always targeted the youth market more aggressively than )oke.

COCA-COLA
-001 - Drink )oca-)ola -7;8 - )oca-)ola Satisfies -7;8 - Delicious and 5efreshing -7;: - )oca-)ola 5evives and Sustains -7;: - Bood *ll the Way Down -7;1 - The Drink of Muality -7;1 - The Breat &ational Temperance -7;I - Delicious )oca-)ola, Sustains, 5efreshes, Invigorates -70: - *mericaPs 5eal )hoice =)oca-)ola )lassic> -701 - )atch the Wave =&ew )oke> -701 - 5ed, White and 'ou =)oca-)ola )lassic> -70I - 'ou )anPt 9eat the 5eal Thing -707 - )anPt 9eat the 4eeling -77; - )anPt 9eat the 5eal Thing -77@ - *lways )oca-)ola -77@ - Taste it *ll

PEPSI-COLA
-7;@ - 3!hilarating, Invigorating, *ids Digestion -7;I - Ariginal (ure 4ood Drink -7;7 - Delicious and 2ealthful -7-: - 4or *ll Thirsts - (epsi-)ola -7-7 - (epsi-)ola - It akes 'ou Scintillate

-7?; - Drink (epsi )ola. It will satisfy you. ?;;I-?;;0G O ore 2appyO#OTaste the once thatPs forever youngO ?;;0G O'eh 2ai 'oungistan and (akistan> ?;;0G O(epsi StuffO Super 9owl )ommercial ?;;0G O(epsi is S-O TK commercial ?;;0G O(epsify karo gaiRO )ommercial =2indi meaning OWanna (epsifyRO> ?;;0-?;;7G OSomething for 3veryone.O eri CaanRO 2indi - meaning OThis is the 'oung era my dearO =India

?;;7-presentG O5efresh everythingO and =during many commercials> O3very Beneration 5efreshes the WorldO

CELIBRITIES PLAYING PART IN TO THE SALES PROMOTION OF THE PRODUCT:

CELIBRITIES OF PEPSI:
AMITABH BACHHAN SHAHRUKH KHAN PRIETY ZINTA SACHIN TENDULKAR SAIF ALI KHAN SOURAV GANGULY RAHUL DRAVID MOHD. KAIF ZAHEER KHAN HARBHAJAN SINGH YUVRAJ SINGH RANBIR KAPOOR VINDHU DARA SUNGJ DEEPIKA PADUKONE

CELIBRITIES OF COKE:
SALMAN KHAN AISHWARYA RAI AAMIR KHAN VIVEK OBEROI BIPASHA BASU AKSHAY KUMAR IMRAN KHAN KALKI

PEPSI IS NOT AS PRICEY

5egardless of which soda you like better though, (epsi seems the better value than )oke right now. )oke is trading at a nearly ?; percent premium to (epsi based on ?;;? (#3s even though the two companiesP earnings growth rates are nearly identical. =(epsiPs are actually a shade higher.> *nd when you look at revenues, the gap is even more dramatic. )oke is trading at I time$s estimated ?;;? sales while (epsi is trading at @.: times ?;;? revenue estimates. 9oth companies are e!pected to post slight declines in sales this year and an increase of about 8 percent in ?;;@. Due to this disparity in valuation, Ceff ,anter, an analyst with (rudential Securities, says he has a ObuyP rating on (epsi and OholdO on )oke. (rudential does not do investment banking. To be sure, )oke is still the market share leader in soft drinks. Ane of the main reasons the stock has outperformed (epsi this year was because it reported a better than e!pected gain in unit volume in the first /uarter. *nd the company has taken steps to cement its carbonated beverage lead as well gain ground in the bottled water market. =)oke and (epsi both have their own brands of water, Dasani and */uafina, respectively.> An Tuesday, )oke announced that it was ac/uiring the SeagramPs line of mi!ers, tonic, ginger ale and seltzer from Diageo and per nod 5ichard. *nd last month, )oke entered into an agreement with Broup Danone to distribute 3vian bottled water in &orth *merica.

Co3# a!" P#/, ! I!" a:

)oca-)ola controlled the Indian market until -7II, when the Canata (arty beat the )ongress (arty of then (rime inister Indira Bandhi. To punish )oca-)olaPs principal bottler, a )ongress (arty stalwart and longtime Bandhi supporter, the Canata government demanded that )oca-)ola transfer its syrup formula to an Indian subsidiary. )oca-)ola balked and withdrew from the country. India, now left without both )oca-)ola and (epsi, became a protected market. In the meantime, IndiaPs two largest soft-drink producers have gotten rich and lazy while controlling 0;J of the Indian market. These domestic producers have little incentive to e!pand their plants or develop the countryPs potentially enormous market. Some analysts reason that the Indian market may be more lucrative than the )hinese market. India has 0:; million potential customers, -:; million of whom comprise the middle class, with disposable income to spend on cars, K)5s, and computers. The Indian middle class is growing at -;J per year. To obtain the license for India, (epsi had to e!port H: of locally made products for every H- of materials it imported, and it had to agree to help the Indian government to initiate a second agricultural revolution. (epsi has also had to take on Indian partners. In the end, all parties involved seem to come out aheadG (epsi gains access to a potentially enormous market% Indian bottlers will get to serve a market that is e!panding rapidly because of competition% and the Indian consumer benefits from the competition from abroad and will pay lower prices. 3ven before the first bottle of (epsi hit the shelves, local soft drink manufacturers increased the size of their bottles by ?:J without raising costs.

PRICE
a!imum retail price of @;; ml bottles is controlled by the )entral Bovernment. The other size and packs are priced keeping factors like competition, internal costs, e!ternal costs, and the corporate ob"ective of the company in the mind.

PRODUCT 811 )l .o$$l#, 011 )l .o$$l#, 9 L $#' .o$$l#, So"a 811 )l Ca!, 920 L $#' PET .o$$l#,
-;;.

SELLING PRICE 6P#' c'a$#4 7A1 8:A 011 9:A 887 01D

MAC2RETAIL PRICE 6P#' c'a$#4 7:A 8;; 071 9;; 807 00D

(rice per bottles the empty bottles are priced at 5s -?; per crate and the shell at 5s

PREFERENCE OF SOFT DRINKS IN A DAY

O!c# a "a& T( c# a "a& O!c# a (##3 O$%#' 01= 70= 71=

60% 50% 40% 30% 20% 10% 0%

50% 25% 20% 5%

Once a Tw ice a Once a day day w eek Other

Once a day Twice a day Once a week Other

F +*'#-9

PREFERENCE TO THE BRAND

P#/, Co3#

A1= :1=

80% 60% 40% 20% 0%

40% 60%

Pepsi Pepsi
F +*'# 7

Coke Coke

TO GIVE THE PREFERENCES

Mo'# Po/*la' Pac3a+ !+ Ta,$# P' c# 91= 91= >1= 91=

80% 60% 40% 20% 0% More Pop !ar Packa"in" 10% 10%

70%

10% Taste Price

More Pop !ar

Packa"in"

Taste

Price

F +*'# 8

MARKETING STRAGGLES OF COMPANY EFFECTS THE SALES

Y#, No 00= A0=

60% 50% 40% 30% 20% 10% 0%

55% 45%

#es #es
F +*'# A

$o $o

FORM OF MARKETING STRATEGIES

T#l#E , o! A"E#'$ , !+ N#(,/a/#' A"E#'$ , !+ O*$"oo' A"E#'$ , !+ Sal#, P'o)o$ o!

A0= 71= 81=

50% 40% 30% 20% 10% 0%

45% 30% 20% 5%

Te!e%ision &d%' Te!e%ision &d%'

$ewspaper &d% $ewspaper &d%

O tdoor &d% O tdoor &d%

(a!es Pro)otion (a!es Pro)otion

F +*'# 0

CHANGE BRAND ON THE BASIS OF PRICE REDUCTION

Y#, No 09= AF=

#es 52% 51% 50% 4*% 48% #es

F +*'# :

$o

51%

4*%

$o

MORE EFFECTIVE ADVERTISING

P#/, Co2 Co3# Co2 01= 01=

===

80% 60% 40% 20% 0% Pepsi Co' Pepsi Co'

F +*'# >

50 %

50 % % % % % Coke % Co' % % Coke Co' % % % % % % % % % % % % % % % % % %

% % % %
CREATIVE AND APPEALING ADVERTISING OF THE SOFT DRINK COMPANY
P#/, Co2 Co3# Co2 A0= A0=

80% 60% 40% 20% 0%

45%

45%

Pepsi Co' Pepsi Co'

F +*'# ;

Coke Co' Coke Co'

INNOVATIVE AND ECCITING OFFERS

P#/, Co2 Co3# Co2 00= A0=

60% 50% 40% 30% 20% 10% 0%

55% 45%

Pepsi Co' Pepsi Co'

F +*'# F

Coke Co' Coke Co'

PUBLIC RELATIONS ANGLE

I!!oEa$ E# a!" #Gc $ !+ oHH#',
The respondents were asked to compare between (epsi)o and )oca-)ola VIW <td. in terms of who comes up with innovative and e!citing offers, or rather things which are lively and interesting to participate.

:;J of the respondents replied in favor of ()I while @;J responded in favor of ))I. -IJ of the respondents thought that both were e/ually good and it varied with time, place and occasions. @J of the respondents were not aware of all the activities and were modest to admit it. Muick and responsive to different occasions and events. )omparing (epsi)o and )oca-)ola VIW <td, ::J of the respondents replied that it was undoubtedly (epsi)o. They supported their statement with reasoning, saying so that (epsi)o was first to associate with India$s :; years of independence. An the other hand ??J of the respondents felt that )oca-)ola VIW <td. is not trailing back. It sponsors mega events like different )ricket tournaments, Alympic Bames, World )up 4ootball etc.-7J of the respondents came up with a more balanced answer. They said if one of the companies sponsors Ane event it$s sure that the other will definitely go on for the ne!t. It$s a tough tussle and is really difficult to demarcate today

MARKET SHARE PERCENTAGE IN NEW DELHI

COKE PEPSI P*'# D' !3, 0:= 80=

*%

35% Pepsi Coke P re +rinks

56%

F +*'# - 91

MARKET PERCENTAGE SHARE IN ALL OVER INDIA 711;

P#/, Co3# Local B'a!"

AA= 09=

5%

44%

51%

Pepsi Coke ,oca! -rand

F +*'# - 99

BRAND PREFERENCES

In a survey done by * 6

magazines on the best marketing companies in India. (epsi and )oca-

)ola were also entered. The results were as followsG P#/, Coca-Cola T%# '#,*l$, oH F0 (#'# : P#/, Coca-Cola >$% F% 0% A%

This shows that both the companies are paying more attention to the marketing of their products. (epsi is higher up on the scale than )oca-)ola. We can see that by the brilliant advertising done by (epsi, which can be seen on every hook and corner of metro cities consumers, so prefer (epsi advertisements and other activities of (epsi, to that of )oca-)ola.

FINDINGS B ANALYSIS
The Indian soft drinks market is at -8; million cases per year. This is very low, even as compared to (akistan and 9angladesh. *ll these factors together have contributed to a ?;J growth in the soft drinks industry.. If this demand continues to grow at ?;J grow at ?;J annually, within -; years the volumes could reach - billion cases. This kind of growth is the reason for the entry of the two giants of the soft drink industry of the world. )oca-)ola (epsi

)oca-)ola and (epsi together control 7IJ of the 8 entire Indian markets. The rest of the @J is shared by companies like )adbury-Schweppes and )ampa-)ola. The total no. of case sold is -8; million of these II million cases of )ola drinks are sold and 1@ million of non-cola drink. There is a rapid increase in the sale of cola soft drinks. Whereas in -77;, they accounted for a third of all soft drinks sold, now their share is well over half. *lso cola sales are growing at a faster rate than non-colas. Ane of the reasons for this could be the aggressive marketing strategies for )ola drinks by (epsi and )oca-)ola. The race to /uench the great Indian thirst had deigned.

P#/, H !" !+,:

(epsi is the ?&D largest selling soft drink in India today. In D3<2I it has @:J of the market share. In India it has 88J of the market share making it the largest selling soft drink, but the second largest company in terms of sales. The sales of (epsi is appro!imately 5s. -,;;; crore annually in India of this only about 5s. @; crore annually is credited to the foods section of (epsi. The rest is all earned by the soft drinks. The soft drinks in (epsi 4oods <TD includeG -. ?. @. 8. (epsi )ola irinda Arange I-+p irinda <emon

The main advantage the (epsi has over its nearest competitor i.e., )oca-)ola is that of it$s was the first multinational to enter India, in the soft drinks sector. (epsi officials and TDial-a-(epsi$ scheme to grow the market, instead of giving discounts at the retail level. *nother point which attributed to (epsi$s success is the bottling operations. (epsi does most of its bottling on its own. *nother significant investment of (epsi has been fountains. 4ountains have considerably increased sales of (epsi, as they have offered consumers a whole new way to e!perience soft drink. *ccording to a study done, 0;J of all soft drinks are consumed on premise, at the point of purchase, rather than at home% thus the fountain initiative has paid off. Thus we see that (epsi has followed aggressive marketing strategies making they get into the minds of the consumer by being visible inside and outside the consumers home by way of television, radio &ewspapers, hoarding, sales-promotion schemes, etc. (epsi has been voted the number one customer service company across categories in terms of regularity, availability responsiveness and initiative.

PRESENT COMPETITON BETWEEN COCA COLA AND PEPSI

If we see the present scenario its hard to tell which brand is winning the cola wars as (epsi

had e!tended its cola wars to other sectors like 45ITA-<*'S and &I 9AAN which is giving tough competition to coca .cola which doesn$t target on these sectors. Second aspect which is to be given in consideration is that, both the companies are

spending heavily on advertisement and more celebrities are roped in by both the companies to fight the competition. 5ecently )A<*-)A<* beverages *)TA5S I 5*& ,2*& *&D ,*<,I for a new ad

%to reply back to this a new ad by (3(SI beverages featuring *)TA5 5*&9I5 ,*(AA5 and KI&D2+ D*5* SI&B2 came up which is making waves at present. )oke is served in ) DA&*<DS and there we won$t find (epsi products even the coffee

served is of B3A5BI* which is a coca-cola brand, same is the case of (INN* 2+T and ,4) which is owned by (3(SI )A there only (epsi products are served ,,,this had lead ? clear war in restaurant segment as well (3(SI is targeting young generation and their ad campaigns are a clear e!ample of that,

whereas coca-cola is targeting the family as a whole which has been its old formula from ages. from (resently coca-cola may be leading in beverages like coke, but its facing severe competition irinda, &imbooz and snack industry where (3(SI is ruling thanks to its ,+5,+53 ad that

has led to great sales for (3(SI )A. Though in packed drinking water ,I&<3' =)A)*-)A<* 95*&D> and *)M*4I&* oreover 9IS<35I still rules in this

=(3(SI )A 95*&D> both are treated e/ually by customers. segment.

FUTURE SCENERIO OF COCA COLA V/S PEPSI

The )A<* W*5S between coca-cola and (epsi would further grow and in my view its

never ending

9oth the companies would try to become &A- and there would *D W*5 between the two

which would prove to be beneficial for actors#actresses as they would earn more through advertisements.

(epsi have started advertisements with female actresses D33(I,* (*D+,A&3 and

)A)*-)A<* which had up till know only endorsed male actors for the - st time endorsed ,*<,I of D3KD fame with I 5*& ,2*& in its new ad.

With the coming up of )A

3&W3*<T2 B* 3S ?;-; in &3W D3<2I , both the

brands would try to attract customers towards itself with heavy promotion and ad campaigns to build new customers and increase there share in market as well as strengthen their brand value and earn profits.

IUESTIONNAIRE
I292 WHICH BRAND WILL YOU PREFERENCE OF SOFT DRINKS IN A DAYJ

O!c# a "a& T( c# a "a& O!c# a (##3 O$%#' I272 WHICH BRAND ARE YOU PREFERENCE TO THE BRANDJ P#/, Co3# I282 WHICH PARTICUALAR RATE TO GIVE THE PREFERENCESJ Mo'# Po/*la' Pac3a+ !+ Ta,$# P' c# I2A2 ARE THE MARKETING STRATEGIES OF A COMPANY AFFECT ITS SALESJ Y#, No I202 WHICH FORM OF MARKETING STRATEGIES IS MOST EFFECTIVE IN THE MARKETJ T#l#E , o! A"E#'$ , !+ N#(,/a/#' A"E#'$ , !+ O*$"oo' A"E#'$ , !+ Sal#, P'o)o$ o!

I2:2 WILL YOU CHANGE THE BRAND ON THE BASIS OF PRICE REDUCTIONJ Y#, No I2>2 WHICH BRAND MORE EFFECTIVE IN ADVERTISINGJ P#/, Co2 Co3# Co2 I2;2 WHICH BRAND HAS CREATIVE AND APPEALING ADVERTISING OF THE SOFT DRINK COMPANYJ P#/, Co2 Co3# Co2 I2F2 WHICH BRAND HAVING THE INNOVATIVE AND ECCITING OFFERSJ P#/, Co2 Co3# Co2

I291 Do &o* $% !3 $%a$ coca-cola a!" P#/, .o$% a'# laE ,%l& ,/#!" !+ o! $%# ' a" ca)/a +!, $o a$$'ac$ c*,$o)#',2 YES NO

Co!,*)#',
4or the purpose of the study, /uestionnaires were prepared for the )onsumers. )are was taken to interview all types of consumers, i.e., G a. b. c. Different age groups ales and females (eople from different localities, etc.

In all about 1; consumers were interviewed. The conclusions that one can draw from these answers provided by the consumers showed that marketing activities do form a ma"or part of the decision. Ane thing that was common amongst all the consumers who were once a day or once a week. The number one factors the influences a customer while buying a soft-drink was taste. This was true for all the consumers who were interviewed. The rest of the conclusions as deducted from the /uestionnaires are as followsG The younger generation preferred soft drinks to the older generation. a. b. c. )hildren up to -: years of age liked to have soft drinks up to ?-@ times a day. 'oung adults liked to have soft drinks up to --? times a day. *dults liked to have soft drinks about once or twice a week. irinda orange. 'oung adults liked (epsi. The older irinda <emon.

)hildren preferred )oca-)ola 4anta, generation preferred )oca-)ola, <imca 6

The reason given for choice of favorite$s soft drink was taste and easy availability. Anly if the consumer liked the taste of drink, he would have it again.7:J of the consumers felt that marketing strategies of the company did affect the sales of their soft-drink. arketing strategies made the consumer try a drink for the first time. The second time round it was the consumers choice himself and not strategy could affect that. 'oungsters were more acceptable to change. They tried different drinks, )ola and non-)ola. *dults stick to one and they prefer drinks that do not affect their health, like <imca.

a"or number of people found television advertising to be the most effective. 'oung and the old liked to watch the advertisements on television. Sponsoring events, outdoor advertising and sales promotion schemes were second choice of the consumers. +nder television advertising, (epsi came in as the number - favorite of the people the advertisement of Shah-5ukh ,han and the dog was the favorite of the consumers. Their new advertisement of irinda <emon is also lifted by the people. The advertisement that came in ust-,alander going ost of the second was the )oca-)ola advertisement of the people )ricket and the song

on at the back. These, advertisement remained most in the minds of the people.

consumers felt that (epsi was the market leader in the soft-drink industry, in Delhi well as in India.

77J of the consumers interviewed felt that the marketing strategies of the )oca-)ola and (epsi have helped them in attaining the huge market share that they possess. Women and children prefer cans as compared to men. These are the ma"or conclusion that can be drawn about a consumers$ behavior. )ompanies must take the initiative of finding out the habits of the consumers and then changing them, in their favor.

ANALYSIS OF IUESTANNAIRE
,*'E#& 01 '#,/o!"#!$, (#'# c%o,#! a)o!+ " HH#'#!$ a+# +'o*/, Ho' co!"*c$ !+ $%#

FINDINGS:

-. ?. @. 8. :. 1. I. 0. )A&S+ 35S. 7. particular brand. -;.

'A+&BS3T5S prefer (3(SI )A<* over )A,3 Alder age group prefer irinda lemon and limca over coke and (epsi cola *DS play a ma"or role in choosing of brand )elebrities have a great effect on people consuming cold drinks (eople prefer &imbooz =(epsi co>over (epsi cola and coke. In terms of innovative and e!citing offers (epsi co leads coca-cola. When the /uestion of more effective advertisements was asked mi!ed reactions (rice plays an effective role for choosing of product among I&DI*& T*ST3 came out to be most important for the consumers in preferring for a T3<3KISIA& came out to be most effective for ad campaigns as respondents

came with :;-:; response for both )oke and (epsi.

of all age groups watch tv.

RECOMMENDATIONS
Soft drinks are an impulse product. When a person is thirsty, he would first think of water or tea. Some even would prefer T&imbooz EX The Indian population is the largest in the world today, there can be no other country in the world, which provides so much of an opportunity for the soft-drink manufacturers. The Indian soft drink market is at -8; million cases per year, this is very low. Thus the consumption of soft drink can go up. Sinc--0Ye the entry of )oca-)ola into the country the industry is growing at a rate of ?;J annually. If this rate is maintained, then by the year ?;;: the market of soft drink would be billion cases annually. 2owever )oca-)ola wants to accomplish this feat by them. To do this the industry has to take certain steps. *ll the companies are fighting to get a ma"or share of this growing market. They should all try to increase the total market along with their individual shares. An the basis of all the field work and table work done, some suggestions can be made, which may help the company in increasing the total market as well as the sale of the companies. The various suggestions that can be made are as followsGSoft drinks retail at prices between 5s. 1 and 5s. -;. These are e!pensive when measured against purchasing power. *ccording to one study, it takes Indian :; minutes of work to be able to buy a bottle in other countries, the norm is five minutes. Thus to increase the total market of soft drinks, manufactures should try and decrease the prices, so as to increase sales. *vailability is a ma"or factor, which makes the consumer buy a soft drink. Soft drinks should be made available more readily than present. There are only @;;, ;;; retailers stocking soft drinks in India. Thus retailing outlets should be increased. *lso related to this point, is vending machines. In developed machines, vending machines are kept in all consumer areas, like super markets, schools, amusement parks, local markets, etc. These

It is seen In India, that people prefer having their drinks with or after food. )ompanies could have commercials which show people en"oying their drink with a good meal, so that consumers associate drinking soft drinks while having food. )ompanies should try to educate the consumer about the health related sub"ect. 4or e.g.Ga> b> <imca is recommended to patients by doctors. )ola drinks are known to be very fattening ,

9ut in fact cola drinks contain no calories from fat they contain calories from sugar which can be easily burned off. The soft drink cans and plastic bottles should mention the calories and other related information on the packing. )ompanies should try to build high brand e/uity. This provides a number of advantages to the company. a> The company en"oys reduced marketing costs because of high level of consumer brand

awareness and loyalty. b> The company will have more trade leverage in bargaining with distributors and retailers

since the customer e!pects them to carry the brand. c> The company can change a higher price than its competitors because the brand has higher

perceived /uality. d> e> The company can more easily launch brand e!tension. *bove all, the brand offers the company some defense against fierce price competition.

The companies should go in for diversification Ance the brand is known, it is easier to sell more of its products. 4or e.g. )oca-)ola clothes have sold about H-;; million worth of clothes and accessories. This would increase revenues of the company. The companies should not have competitor myopia. It is more often the latent company than the current competitor who busies the company. (epsi and )oca-)ola are so busy fighting with each other, that they have left the non-cola sector open for )adbury-Schweppes.

*dvertising is a way building brand image. It does not promote /uick selling. Thus companies should used advertising only for long advertising can be used forG a> b> c> 9rand image building 5eminder advertisingG reminding people to buy these drinks. 5einforcement advertising-Telling people that they have made the right choice.

Television advertising seems to make a impact on the consumers =based on /uestionnaire answers> so companies should concentrate more on television advertisements. Sales promotion tools create a stronger and /uicker response. Thus sales promotion tools such as coupons, contests, premiums and the like should be used to dramatize product offers and to boost sales. Sales-promotion effects are usually short run and induce the people to purchase soft drinks, now. )oca-)ola and (epsi have taken up sponsoring of events on a ma"or scale. *ll kinds or events, whether big =Wills Worked cup> or small =college contests> have either (epsi or )oke banners of sponsorship. The effectiveness of this can be /uestioned. Whether these activities increase sales or not is a big huge /uestion mark. It is recommended that company should introduce more and more customer oriented schemes and conte!ts. 4or e.g. (epsi$s new campaign E(epsi cool malF in which they are giving free gifts to their customers. The company should maintain a small group of Emissionary sales manF whose functions should be to guide distributors and retailers, keep a constant watch over the prevailing situation to provide the continuous feedback to the company. It is also recommended that companies should launch soft drink in small pack ?;; ml and -:; ml. Thus we see that there various steps which can be taken by the companies to increase their sales and to increase the total market share.

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