You are on page 1of 80

Comparative Analysis of Soft Drink Market in Ghaziabad

A PROJECT REPORT
ON

A STUDY OF SUPPLY CHAIN MANAGEMENT OF


PEPSI CO. AND RESEARCH ON ITS MARKET
SHARE IN GHAZIABAD DISTRICT

PEPSI
(GHAZIABAD)

Under Guidance Of
Mr. Sanjeev Anad
(Territory Dev. Manager)
Pepsi, Ghaziabad

Submitted by
Amandeep Saini
PGDBM (2002-2004)
Roll No. 67/A

FORTUNE INSTITUTE OF INTERNATIONAL BUSINESS


NEW DELHI-61

Fortune Institute of International Business

Comparative Analysis of Soft Drink Market in Ghaziabad

CONTENT
Topics

Page No.

ACKNOWLEDGEMENT

PREFACE

METHODOLOGY

LIMITATION

1. COMPANY PROFILE
1.1 PEPSI COLA A BRIEF STORY

1-19

1.2 PEPSI IN INDIA

20-23

(i)

Turnover

(ii)

Investment

(iii)

Employment

(iv)

Local Action

(v)

Channel Management

(vi)

Variables

1.3 ENTRY OF PEPSI

24-25

2. ORGANISATIONAL PROFILE
2.1 EVYANI BEVERAGES LTD.

26-27

2.2 ORGANISATIONAL HIERARCHY

28

2.3 DISTRIBUTION OF ORGANISATION

29

2.4 DISTRIBUTION STRATEGY

30

Fortune Institute of International Business

Comparative Analysis of Soft Drink Market in Ghaziabad

2.5 DISTRIBUTION CHANNEL

31-32

3. MANUFACTURING PROCESS

33-34

4. PRESENT STATUS OF PEPSI IN GHAZIABAD REGION

35

5. DATA ANALYSIS AND INTERPRETATION OF DATA

36

5.1 ANALYSIS OF PEPSI V/S COKE ON THE DAILY SALES 37-50


5.2 CALCULATION AND GRAP.HS

51-53

6. SWOT ANALYSIS OF D.B.LTD

54-55

7. FINDINGS AND OBSERVATION

56-59

8. RECOMMONDATION

60-61

9. SUGGESTION

62-63

10. CONCLUSION

64-65

11. CONSUMER QUESTIONNAIRE

66-69

12. RETAILER AND DEALER QUESTIONNAIRE

70-72

13. BIBLIOGRAPHY

73

Fortune Institute of International Business

Comparative Analysis of Soft Drink Market in Ghaziabad

ACKNOWLEDGEMENT

The opportunity of undergoing summer training in Devyany Beverages Ltd. of


undergoing exposed to very professional and organized management system.
It is not only gave me a practical experience but contributed largely in laying the
foundation for concern the field of marketing.
Firstly I express my gratitude to Miss Mauhomi who allocated such an interesting
project which has its own individualism.
I also express my thanks especially to Miss Olympia Edward (Marketing Executive)
whose valuable cooperation in every steps and patient nearing has added value to the
project.
I wish to my sincere thanks to Mr. Sanjeev Anand (Territory Development
Manager) and Mr. Santpal (Customer Executive) who gave me a patient hearing and
support. Thus increasing my knowledge and understanding the various facts and
function of the organization.
At the last but not the least I thankfully acknowledge of each and every staff of
marketing team especially to the salesman whose enthusiastic cooperation helped
my report to be a genuine one.

Fortune Institute of International Business

Comparative Analysis of Soft Drink Market in Ghaziabad

PREFACE
The subject matter of this report covers overall study of soft drink market in
Ghaziabad. The knowledge of marketing management, which we gained during the
course of our PGDBM studies, has been very much beneficial in the present of this
report. It was DEVYANY BEVERAGE LTD. GREATER NOIDA, where I was
placed to increase my knowledge & skills.

The soft drink is meant for satisfying particular need of human being, which is
definitely not of psychological in nature. The loyalty of particular brand always
depends upon various factors- as quality, price, product, seasonal competitions,
weather condition, facilities, tastes, style and many more things.

Fortune Institute of International Business

Comparative Analysis of Soft Drink Market in Ghaziabad

RESEARCH METHOLODOLOGY
This study is related to soft drink market. It is a descriptive type of research study.
To carry out this study I have surveyed retailers based in various localities of
Ghaziabad city for this study. I have used judgments sampling, method, which is a
non probability sampling method.
In this changing scenario of the market there is tough competition between various
companies, which tries to gives itself as a good product and fulfills all that the
consumer want from a product for that product.
My research leads in the direction of San Beverage Pvt. Ltd, which conduct all the
products provide by the concern. It evaluates the franchisee of Ghaziabad region as
well as the dealers providing the service in Ghaziabad.
The purpose of this topic is to describe the research procedure. This includes to over
all

researching design, the sampling, source of data collection etc.

A sample of 180 outlets was taken.


Sample design Area sampling.

Fortune Institute of International Business

Comparative Analysis of Soft Drink Market in Ghaziabad

SOURCES OF DATA
In this study I have mainly used primary source of data but at few moments of time I
have referred to secondary data too.
Research is used to guide the implementation of research study towards the
realization of its objectives. The descriptive research design has been found most
suitable and widely used method, which is designed to describe the characteristics of
used given product. The degree of which the product used varies with income, age,
sex or others characteristics.

DATA COLLECTION METHOD


During this research study. I went to retailers and interviewed then collect primary
data and secondary data. So, data collection methods understand direct interview
and the instrument used is a questionnaire.
Foe the research analysis, the data was collected from the consumer from various
walks of life. These datas collected from the primary and secondary sources.
Primary Data Collection
It involved survey and interviews with the consumers-retailers and the actual
consumers. The data was collected through questionnaires and would help to know
the consumers hard and soft facts. Primary data collection also involved
interviewing retailers suited in various areas of the city.

Fortune Institute of International Business

Comparative Analysis of Soft Drink Market in Ghaziabad

Secondary Data Collection


It involved collecting data through reports, publication, magazine, periodically,
government library, private research organization and etc.

RESEARCH DESIGN
This study employed two research techniques:

Qualitative research

Quantitative research

QUALITATIVE RESEARCH
In select the appropriate research format of the study and the type of data needed
The choice of data collection technique is the focus groups
It is obtained for:

In depth understanding of consumers.

Consumer need

Customers perception of brands.

Customers preferences.

QUANTITATIVE RESEARCH
The design of quantitative research study includes data collection, sample design
contraction of collection tools.
It is obtain to rate the different aspects on parameters.

Awareness.

Image of brand.

Expectation of consumers.

Brand loyalty.

Fortune Institute of International Business

Comparative Analysis of Soft Drink Market in Ghaziabad

LIMITATIONS
.
Unfortunately I had to depend on the available database in the city. This database
does not appear to be highly dependable as different published sources show
substantially different figures. Therefore I had to take a judgmental view of the
available data so as to arrive at the direction required for the future policies and
steps.
Another problem was getting up-to-date data. Majority of the data available in
various journals, on Internet and various EPCs is not up-to-date.

Fortune Institute of International Business

Comparative Analysis of Soft Drink Market in Ghaziabad

The History of Pepsi-Cola

Caleb D. Bradham
Caleb D. Bradham was born in Chinquapin, North Carolina in 1866 to a well-to-do
family. Caleb was a very well liked young man who was not only very smart, but
very popular as well. He seemed to be destined for great things in life. Caleb wanted
to become a doctor and after graduating the University of North Carolina he entered
medical school at the University of Maryland. However, in his second year of
medical school his father's business failed. Caleb had to quit school and take a job,
so he moved to New Bern, North Carolina and took a job teaching school. However,
Caleb still loved medicine, so when the towns pharmacy, at the corner of Middle
and Pollock Streets, was placed on the market in 1893, Caleb convinced the owner
to sell him the business. Exactly how Caleb pulled this off must be a testament to his
great personality and his salesmanship ability because Caleb didn't actually have any
money to purchase the business. He convinced the pharmacies owner to sell him the
business based almost solely on credit.

Caleb immediately changed the name of the pharmacy to "Bradham Pharmacy" and
started putting his medical training to use putting together prescriptions for the
community of New Bern. In those days a pharmacy was more than just a place you

Fortune Institute of International Business

10

Comparative Analysis of Soft Drink Market in Ghaziabad

picked up your medicine. In those days a pharmacy was also the social gathering
place of the towns more educated men, and Caleb's warm and engaging personality
brought these men to his pharmacy on a pretty regular basis. Many pharmacies of
that era also had soda fountains from which they served their customers soft drinks
(as opposed to the hard drinks served in saloons). Caleb's pharmacy was no
different, and Caleb was pretty good at concocting new soft drinks of his own
making. Sometime in the 1890s Caleb created one such drink that became quite
popular at the Bradham Pharmacy, and the patrons started calling it "Brad's Drink"
in Caleb's honor. However, Caleb preferred another name for this drink, and he
decided to call it Pepsi- Cola.

Cola is a term based on the African kola nut and it was used for its caffeine content.
Caleb's drink didn't contain either the kola nut or any caffeine, but it did taste pretty
close to the already popular "Coca-Cola" and that was the reason for using the term
"Cola" in its name. The "Pepsi" part of the Pepsi-Cola name comes from pepsin, an
enzyme that aids in digestion and was also a popular ingredient in early soft drinks
(and chewing gum). There has been some dispute as to whether or not the original
Pepsi-Cola actually contained pepsin as an ingredient.

The term "Pepsi" in its name is surely an indicator. One of Pepsi-Cola's earliest
known advertisement is found in the Feb. 25th, 1903 New Bern Daily Journal, and
one of it's claims was that it "Aids Digestion" -- a popular claim for items containing
pepsin. Lastly, another newspaper ad produced in 1908 flatout said, "PEPSI-Cola is
an absolutely pure combination of pepsin -- that's what your stomach needs these

Fortune Institute of International Business

11

Comparative Analysis of Soft Drink Market in Ghaziabad

days -- acid phosphate and the juices of fresh fruits." (However, it is a fact that by
1923 Pepsi-Cola no longer contained pepsin as an ingredient).

Nobody really knows when Brad's Drink actually became Pepsi-Cola but when
Caleb filed for a trademark for his drink in 1902 the documents stated that PepsiCola had been in continual use since August 1, 1901. However, in 1903 Caleb filed
for a trademark for Pepsi-Cola with the state of North Carolina, and the documents
there indicate that Pepsi-Cola had been in continual use since August 28, 1898.
However, in 1906 Caleb had to register "Pepsi-Cola" a second time with the U.S.
Patent Office because there was already a product named "Pep-Kola" on the market.
The patent office believed these two names were too similar and since Pep-Kola had
been trademarked on Feb. 15, 1896, Pepsi-Cola had to come up with a new
trademark. Instead of changing the name of his product, Caleb bought the rights to
the "Pep-Kola" trademark and reapplied for his trademark in 1906. On these papers
he gave the date Feb 15, 1896 as the earliest date Pepsi-Cola or he used names thus
derived. However, August 28, 1898 is the date most people set as the date that
Pepsi-Cola came into being.

In any event, by 1902, Caleb had taken on an assistant named R.F. Butler, but better
known as "Uncle Dick," and while Uncle Dick was put in charge of running the
pharmacy, Caleb threw all of his energy into Pepsi-Cola. In his first three months
Caleb sold 2,008 gallons of Pepsi-Cola syrup. Not bad for three months, and actually
well enough to prompt him to move out of the back of the drug store and into a
bigger facility. By the end of his first year he had sold 7,968 gallons of syrup. By

Fortune Institute of International Business

12

Comparative Analysis of Soft Drink Market in Ghaziabad

1904 he was selling 19,848 gallons a year, and this is also the same year he started
bottling Pepsi-Cola. A year later he also began selling Pepsi-Cola Bottling
franchises, and then he started expanding rapidly. By 1910 he had 280 bottling
franchises and covered at least 24 states. By 1907 he was selling over 100,000
gallons of syrup a year, and in 1915 Pepsi-Cola Corporation had assets of over
$1,000,000.

Life was good for Caleb, but it was about to turn bad. During World War I sugar
prices began to fluctuate wildly, and that was assuming one could get their hands on
a supply of sugar at all. Eventually the government implemented price controls to
stabilize the costs of sugar, but even that didn't help with the erratic supply side of
the sugar market. Just as Pepsi would spend large sums on advertising, access to
sugar supplies would dry up and without a product to sell all that advertising would
just be a waste. During these war years Pepsi was running at a loss, but it was
believed that once the war ended that things would return to normal. However, once
the war ended and the price controls were lifted, sugar quickly jumped in price. On
November 11, 1918 the price of sugar had been 5 per pound, but by May 19, 1920
the cost of sugar had skyrocketed to 22 per pound. The public was simply unwilling
to pay more than a nickel for their soft drinks, but the sugar prices were killing profit
margins. To make matters worse, it appeared that the cost of sugar was going to
keep going up. Caleb and many other soft drink manufacturers decided to buy huge
amounts of sugar now, and thus protect themselves from even higher sugar prices.
Bad decision! Sugar prices peaked at 26? Per pound then the prices collapsed and
within a few months sugar was selling below 2? Per pound. During the previous

Fortune Institute of International Business

13

Comparative Analysis of Soft Drink Market in Ghaziabad

couple of years, Pepsi-Cola had been operating at a loss because of fluctuating sugar
prices and supplies, but now they faced a loss so large that it was unlikely they
would be able to recover. They tried borrowing capital, they tried selling assets, they
tried selling additional shares of stock, and they tried completely reorganizing.
Nothing worked. They just couldn't raise the capital that would have allowed them
to return to prosperity. By March 2, 1923 "The Pepsi-Cola Corporation" was
bankrupt, and two years later "The Pepsi-Cola Corporation" was allowed to die for
nonpayment of taxes. In 1934, at the age of 67, Caleb Bradham died not even able to
hold onto his original drug store.

In 1923, when Pepsi-Cola went bankrupt, its creditors had formed a corporation
named "Craven Holding Corporation." Once the bankruptcy took place this new
corporation paid $30,000 for all of "The Pepsi-Cola Corporation's" assets -including the trademark to Pepsi-Cola. This was a pretty common practice for
creditors as it made handling the bankruptcy easier. In July of 1923, and man named
Roy Megargel formed the "Pepsi-Cola Corporation" in Viginia and purchased all of
the assets of Pepsi-Cola from the Craven Holding Corporation for $35,000.
Megargel was a Wall Street financier, who had tried to help Caleb Bradham before
the company went bankrupt, but Megargel was unable to attract other investors and
the plan had fallen through. Megargel was making money hand over fist in the bull
markets of Wall Street, but he wasn't nearly as good at running a soft drink company
for eight years Pepsi-Cola operated at a loss with Megargel using his personal funds
to keep the company afloat. However, when the stock market crashed in 1929

Fortune Institute of International Business

14

Comparative Analysis of Soft Drink Market in Ghaziabad

Megargel was hit hard, and he was no longer able make up Pepsi-Cola's annual
operating loses. On June 8th, 1931 Pepsi-Cola once again went bankrupt.

Charles G. Guth is one of Pepsi's more colorful figures, and probably is the man
most responsible for making Pepsi what it is today. Guth had been in the candy and
soft drink business for over thirty years and had done quite well for himself, but lost
nearly everything in the stock market crash. Right before the stock market crashed,
Mr. Guth had sold his candy company, "Mavis Candies" to "Loft, Incorporated."
Instead of taking cash for his company, he took shares of "Loft, Inc." stock and
became a member of the board of directors. Two months after Guth had sold his
company, the stock market crashed. Loft stock was hit very hard, and the
shareholders wanted heads. Guth, who had lost a fortune in the crash of Loft stock,
decided to capitalize on this sentiment. As a board member he had the right to look
at pretty much any company document he desired, so the first thing Mr. Guth did
was to start putting together documentation that showed the previous president and
board of directors were running the company into the ground. Secondly, Mr. Guth
took what money he had left after the stock market crash, and bought more Loft
stock. Lastly, he initiated a proxy fight for the presidency of Loft and the right to
throw out all of the old board members and replace them with members of his own
choosing. Guth had been able to acquire enough of the voting rights of shareholders
to win his proxy fight, but the old board had enough voting rights to prevent the
proxy vote from ever happening. On the day the proxie vote was to take place the
old board came to the meeting, and the old president gave a verbal tongue lashing to
all those present at the meeting and then they left. However, this was a big mistake

Fortune Institute of International Business

15

Comparative Analysis of Soft Drink Market in Ghaziabad

because by showing up at the meeting, even though they then left, it provided the
needed quarum to allow a vote and the old president and board were replaced by
Guth and his hand picked board.

Guth ran Loft with an iron fist, and those that worked for him or did business with
him rarely crossed him. Those that did cross him never did so twice. Loft owned and
directly operated about 200 candy stores, and most of these had soda fountains. In
1931, these Loft candy stores had sold over 30,000 gallons of Coca-Cola, and Guth
believed that since this was wholesale quantity he warranted a jobbers (liddleman)
discount. Coca-Cola disagreed with Guth, and repeatedly turned down Guth's
discount request. Now Guth was ticked, and Guth wasn't the kind of guy you wanted
to get mad. Guth didn't just switch from buying Coca-Cola to buying a competitors
product, but instead he bought Pepsi-Cola and became Coca-Cola's worst nightmare.

Megargel had contacted Guth and told him of the troubles he was having with PepsiCola. Guth then made an agreement with Megargel and this is how it worked. Guth
"borrowed" money from Loft Inc. (he was short of cash since his money was tied up
in Loft stock) and gave it to Megargel to buy Pepsi-Cola at the bankruptcy auction.
Guth then formed the "Pepsi-Cola Company", a Delaware corporation with 300,000
shares of stock. After Megargel purchased Pepsi-Cola at the auction for $10,500.
Megargel then owned 100,000 shares of the new company, Guth owned 100,000
shares (actually the Grace Company owned the shares but Guth owned the Grace
Company), and 100,000 shares would be kept by the new Pepsi-Cola Company to
raise money in the future. Megargel was also promised a salary of $25,000 a year for

Fortune Institute of International Business

16

Comparative Analysis of Soft Drink Market in Ghaziabad

six years, and after the six years were up, a Royalty for each gallon of Pepsi-Cola
sold. Operations were moved to New York, the formula was changed to taste even
closer to Coca-Cola, and the new Pepsi-Cola Company immediately started losing
money.

The Loft candy stores purchased more than half of the syrup sold by Pepsi-Cola.
However, the switch from Coca-Cola to Pepsi-Cola resulted in a more than a 30%
decline in soft drink sales at the candy stores. During its first three years of operation
Pepsi-Cola lost over $26,000 and Megargel had never been paid his salary of
$25,000 a year. At one point Coca-Cola was approached to see if they wanted to buy
Pepsi-Cola, but they declined. Eventually Megargel would take Guth to court for
payment of his salary, but realizing that this would put Pepsi-Cola back into
bankruptcy he decided to settle out of court. As part of the settlement Megargel sold
97,500 shares (he had given away 2,500 shares) of Pepsi-Cola stock to Guth's Grace
Company for $35,000. Once again Guth didn't have the money so he "borrowed" it
from Loft Inc Megargel should have waited 6 more months. Most soft drinks were
sold in 6 ozs. bottles for 5 But Guth had been trying to sell Pepsi in both 6 oz.
bottles for 5 and in 12 ozs. bottles for 10 werent working. Guth realized that PepsiCola didn't have the same name recognition as its more famous competitor so in
1934 he decided to try something radical. Guth started selling 12 ozs. of Pepsi-Cola
for 5 it was a HUGE success! Guth immediately took a wharehouse that had been
owned by his old company Mavis Candies/Beverages (now owned by Loft) and
converted it into a Pepsi-Cola bottling plant. He also had several employees of Loft
Inc. start working on producing and selling Pepsi-Cola full time. Then he went to

Fortune Institute of International Business

17

Comparative Analysis of Soft Drink Market in Ghaziabad

selling Pepsi-Cola franchises throughout the nation. Within two years Pepsi-Cola
had gone from losing small amounts of money, year after year, to making over
$2,000,000 in profits, and by 1938 it was making over $4,000,000.

Guth had placed all of his efforts into Pepsi-Cola and by 1934 he had moved it out
of the red and into the black, but Loft Incorporated was sinking fast When Guth had
taken over Loft Inc. in 1931 it had shown a profit of $366,000 but by 1934 its
earnings had shrunk to $21,000 and were steadly declining. By 1935 Guth would
resign from Loft Inc., but it wasn't the board that asked for his resignation it was the
employees that wanted his head. As a cost cutting move Guth had cut salaries and
wages. The employees went on strike, and they made it clear that they blamed Guth
for the companies problems. At one point it was bad enough that Guth needed a
police escort so that he could get out of his office without losing his life. Guth then
resigned from Loft Inc. and started running Pepsi-Cola full-time. Actually he had
been running Pepsi-Cola full-time for the last couple years, but now he made no
more pretenses.

Loft Incorporators new Chief Executive Officer was James W. Carkner and he had
two problems. First, the company was in direr straights and faced immanent
bankruptcy. Second, Carkner was not intended to be the permanent CEO. Although
Guth had resigned from Loft Inc. he still owned 200,000 shares of stock, his family
owned another 50,000, and he had "borrowed" enough money from Loft Inc. for
Pepsi-Cola to own another 100,000 shares. This was 35% of the companies stock,
which made Guth very powerful. When Guth resigned he had agreed to sell Loft Inc.

Fortune Institute of International Business

18

Comparative Analysis of Soft Drink Market in Ghaziabad

back his 200,000 shares of stock for $600,000. If the company couldn't come up
with the money in two months James W. Carkner had agreed to resign and Guth
would be allowed to name his own president. Guth was sure that Carkner would not
be able to raise the funds.

The first thing Carkner did was to convince the striking employees to go back to
work. If they didn't, the Christmas season would be missed and the company would
have surely gone bankrupt. Meaning the employees would have had no jobs at all.
Once this problem had been solved Carkner went to work on raising the $600,000
and quickly found that task to be impossible. In order to raise those kinds of funds
he would have needed some collateral, and the only collateral Loft Inc. had been its
stock. Stock in a company on the verge of bankruptcy is no collateral all. However,
an employee had told Carkner of $30,000 that Guth had borrowed from a Loft
subsidiary and never paid back. Carkner sought the advice of a lawyer, and the
details of all the money Guth had borrowed from Loft Inc. to actually start PepsiCola came to light. Once this lawyer found out about all the borrowed money, about
all the time Guth was spending running Pepsi instead of Loft Inc. and of all the Loft
Inc. employees that were doing work full-time for Pepsi, the lawyer suggested suing
Guth for ownership of Pepsi-Cola.

On December 30, 1935 Loft Inc. sued Guth, Grace Company, and Pepsi-Cola
Company for ownership of all the Pepsi-Cola stock they owned. Carkner then
refused to resign as CEO as he had promised. The next board meeting would be in
three months, and all Guth had to do was use his voting stock to oust Carkner as

Fortune Institute of International Business

19

Comparative Analysis of Soft Drink Market in Ghaziabad

CEO, appoint someone he controlled, and the lawsuit was finished. However,
Carkner was able to get the courts to rule that the stock owned by Pepsi-Cola could
not be used to cast votes until the lawsuit was completed. This left Guth with
100,000 shares of voting stock less than he had counted on. The next thing that
Carkner did was to approach Phoenix Securities Corporation. Phoenix bought
31,000 shares of Loft Inc. stock, they occasionally provided loans to Loft Inc. to
keep them solvent, and they assisted Carkner in convincing the shareholders to keep
Guth out of power until the lawsuit was completed.

For the next two and a half years Loft Inc. limped along barely surviving. In 1936,
1937, and 1938 they lost $870,514, $972,704, and $946,151 respectively their sales
were also dropping on a yearly basis with $12,000,000 in sales in 1936 to
$8,567,000 by 1938. Phoenix was required to provide Loft Inc. several large loans to
keep them from going into bankruptcy. Phoenix received stock options in return for
its loans. If Loft won its lawsuit, Phoenix would be able to buy 400,000 shares of
Loft stock (essentially 1/3 of the company) at around $1.50 per share. On September
17, 1938 the trial was decided. Even though, two weeks before the suit by Loft was
initiated, Guth had paid Loft $395,000 -- everything he had borrowed -- the
Chancellor found in favor of Loft. The Chancellor found the Pepsi-Cola Corporation
would have never become what it had become without "Loft executives, Loft
personnel, Loft equipment, Loft facilities, Loft merchandise, Loft money, Loft
credits," and other loft resources. In fact, at one point nearly all of Loft's working
capital was tied up in Pepsi-Cola. Loft now owned all stock, trademarks, equipment,
money, facilities, and etceteras. Loft owned everything -- it was a total victory.

Fortune Institute of International Business

20

Comparative Analysis of Soft Drink Market in Ghaziabad

Guth immediately appealed the courts decision to give Pepsi-Cola to Loft


Incorporated. As the lawsuit was being appealed the courts allowed Mr. Guth and
two members of his choosing to sit on the Pepsi-Cola board of directors, and
Carkner and two others of his choosing were also allowed to sit on the Pepsi-Cola
board of directors. The courts then appointed Mr. Arthur T. Vanderbuilt, a former
President of the American Bar Association, to the board as a sort of referee. Phoenix
Securities Corporation insisted that one of their members, Walter S. Mack, Jr., be
one of Lofts members of the board. In fact, it was Mack who was made president of
Pepsi-Cola with Guth being made General Manager.

Guth finally coming to the realization that he may very well lose his appeal began to
put into place a secret plan. He had his son-in-law go to Canada and purchase the
Noxie-Cola trademark. Then he started hiring away many of the executive and
technical people that were working for Pepsi-Cola. He then started contacting PepsiCola bottlers and convincing them that they should switch to bottling Noxie-Cola.
Now, when these allegations were brought to the attention of the full board, Mr.
Guth was outraged and denied the allegations with great vigor. However, the court
appointed Vanderbuilt was sufficiently convinced of Guth's wrong doing and
removed him from the Pepsi-Cola board for due cause. On April 11, 1939 the Court
of Appeals upheld the lower courts ruling and on July 19, 1939 Guth settled with
Loft. Guth agreed not to appeal the case any further, to turn over all of his shares of
Pepsi-Cola to Loft Inc., and to stay out of the soft drink business for the next five
years. In return he received around $1,000,000 cash over five years and some Pepsi-

Fortune Institute of International Business

21

Comparative Analysis of Soft Drink Market in Ghaziabad

Cola bottling plants that were worth far more than the cash he received. After Guth
had lost his proxy fight he had sold his shares of Loft and if he had not done so he
would have still owned 20% of Pepsi-Cola. Once the Guth lawsuit was resolved
Phoenix Securities Corporation exercised its option to purchase 400,000 shares of
Loft stock. This was 29% of the stock and effective voting control of the company.
With this power, Phoenix made its vice president, Walter S. Mack, Jr., both
President and Chief Executive Officer of Pepsi-Cola. Carkner was not happy about
this decision, but there was nothing he could do about it. Carkner had approached
Phoenix for their help, and without it he would have been out of not only the
Presidency but out of a job as well. Carkner did remain a member of the board and
would remain one of Pepsi's most powerful executives but never again its president.
Mr. Mack then started spinning off Loft's candy operation. Without winning the
Pepsi-Cola court case, Loft Inc. would have lost just under $1.5 million in 1939 -instead they made in the neighborhood of $28 million. So some cash was used to put
the candy business back onto sound financial footing, and the "Loft Candy
Company" was spun off and was completely on its own -- and went on to do fairly
well. Then Mack merged "Loft Incorporated" and "Pepsi-Cola Company" into one
entity -- Pepsi-Cola was merged into Loft and then the name of the company was
change to Pepsi-Cola Company.

Mr. Mack was similar in nature to Mr. Guth in that they were both very powerful
and aggressive men that ran their company with an iron fist. Like Guth, Mack was
not a man to be crossed. However, unlike Guth, Mr. Mack inspired those around him
with a sense that he ran an honest operation. He was also not just a man with an

Fortune Institute of International Business

22

Comparative Analysis of Soft Drink Market in Ghaziabad

enormously strong will, but a man who had a brilliant mind and a warm personality.
However, one of Mack's traits that werent one of his best was a tendency to try a
run everything himself (very much like Guth). One of the few important things that
he did turn over was responsibility for global expansion. Mack put William B.
Forsythe in charge of expanding Pepsi into foreign lands. Actually Guth had done a
pretty good job of expanding Pepsi into foreign lands himself. By the time Forsythe
had taken over global expansion Pepsi was already in Canada, Cuba, Britain,
Bermuda, Mexico, the Dominican Republic, and Puerto Rico. Guth had also
registered the Pepsi-Cola trademark in 80 different countries. Forsythe quickly
furthered this expansion into Mexico, Latin America, and the Caribbean. Expansion
into Europe had to be put on hold due to World War II, but by the time Forsythe
retired from Pepsi in 1956 they had over 118 bottling plants in 52 foreign countries.

One nf the first things Mack did was concentrate heavily on advertising. In the past
Guth had pretty much handled advertising himself; however Mack hired a very well
respected advertising company, Newell, Emmett & Company, from New York City.
The characters "Pepsi and Pete," two policemen patterned after the Keystone Kops,
were soon created and were extremely popular. These two cops were advertised
everywhere and the public immediately associated Pepsi-Cola with them wherever
they were seen. At about the same time Pepsi-Cola launched what was to become
one of the most famous jingles ever written. "Nickle, Nickle" (later known as
"Pepsi-Cola Hits the Spot") was written by Alan Bradley Kent and Austen Herbert
Croom-Johnson.

Fortune Institute of International Business

23

Comparative Analysis of Soft Drink Market in Ghaziabad

"Pepsi-Cola hits the spot


Twelve full ounces, that's a lot
Twice as much for a nickle, too
Pepsi-Cola is the drink for you."

This little jingle would go on to be recorded in 55 different languages, over 1 million


records containing this jingle were produced, and it was the first jingle ever played
from coast to coast on network radio. It is hard to convey just how big this jingle
was, but it was very popular for nearly a decade and was even described as
"immortal." How many people decided to give Pepsi a try because of this jingle
cannot be over estimated. The jingle was first written as a standard commercial with
the jingle at the end but Mack insisted that only the jingle be aired. It was played so
often that 50 years later there are still people who remember the words.

Another thing that Mack was responsible for was a major change in Pepsi-Cola
bottles. Most bottles of Pepsi were just plain old bottles with a paper label glued to
them, and with a non-descript crown topping off the bottle. In fact many of these
Pepsi bottles were actually used beer bottles that were purchased very inexpensively.
Mack had them replaced with bottles containing the word Pepsi in block letters
formed into the bottle along the side, and then accompanied with a paper label that
would eventually be replaced by blowing the label right into the glass. As World
War II approached, Mack also had Pepsi's bottles reflect a new patriotic Red, White,
and Blue theme. At first it was just the crown that was red, white, and blue but
eventually the entire logo would be redesigned as well.

Fortune Institute of International Business

24

Comparative Analysis of Soft Drink Market in Ghaziabad

World War II also provided Mack with the opportunity to handle the same situation
that brought down Pepsi-Cola's inventor Caleb Bradham. Caleb had not handled the
First World Wars effect on sugar prices well at all, and Pepsi-Cola ended up in
bankruptcy. After the Japanese bombed Pearl Harbor Mack immediately bought 2
years worth of sugar. Then the United States government immediately confiscated
half their sugar and thanked them for their contribution to the war effort. The
government then set a quota in place limiting all soft drink companies to 80% of the
sugar they had used the year before. Now Pepsi-Cola was a growing company and
this restriction was going to hit them pretty hard -- particularly the new bottlers that
had not had a chance to purchase large amounts of sugar in the previous year. Mack
came up with a pretty novel solution; he bought sugar in Mexico, converted it into
syrup (El Masco), and then shipped it into the United States. This solution worked
for about two years, and since the sugar was being purchased in Mexico it wasn't
taking sugar away from other Americans. However, after two years the government
declared the Mexican syrup to actually be sugar and disallowed its importation. Mr.
Mack then tried buying a sugar plantation in Cuba, but the government still wouldn't
allow them to import the sugar (over the next few years the plantation would make a
lot of money for Pepsi).

What actually put Caleb's Pepsi-Cola into bankruptcy was escalating sugar prices
after the war ended. The public wouldn't pay more than a nickle for a bottle of pop,
and the increase in sugar prices meant less profit to put into advertising. Less money
in advertising meant less sales, and a sickening downward spiral had taken the

Fortune Institute of International Business

25

Comparative Analysis of Soft Drink Market in Ghaziabad

company into bankruptcy. After World War II ended it wasn't escalating sugar
prices that Mack faced, but the cost of everything but the sugar started escalating.
Mack made the same decision that Caleb had made, and he cut advertising. The
results were the same with Pepsi-Cola making almost $7 million in 1947, but only a
little over $3 million in 1948. Mack also missed the boat on vending machines.
Pepsi stayed away from the vending machine market while his competitors were
putting vending machines all across the nation. Eventually Pepsi did get into
vending machines, but the delayed cost them a lot of prime locations.

By 1950 the Pepsi board of directors decided that the Pepsi-Cola Company needed a
change in management style. Mack was a very hands on manager who rarely
delegated responsibility, and although he had been a phenomal force in running
Pepsi-Cola for the last dozen years he had made a couple errors in judgment during
the last couple years so it was decided to move Mack to Chairman of the Board and
to name Alfred N. Steele to the presidency. Mr. Steele was a pretty colorful
individual. He had been a vice president at Coca-Cola before coming over to PepsiCola. He was married to Hollywood movie star Joan Crawford, and earlier in life
had even run a circus. Steele also spoke in a down home fashion that went right to
the core of the situation. In a meeting where some senior executives started having
an argument, a junior level manager tried making his opinion heard and Steele
responded, "Listen, Son -- when the elephants start fighting the peewees get stepped
on." Steele quickly turned Pepsi back towards profitability by heavily investing into
advertising. Actually what he did was to invest heavily into advertising in a regional
market and once that region had recovered he started concentrating on another

Fortune Institute of International Business

26

Comparative Analysis of Soft Drink Market in Ghaziabad

region -- it was done this way because Pepsi didn't have the funds for a nationwide
advertising campaign. Steele also moved the company aggressively into
supermarkets, vending machines, and into overseas markets.
Eventually this allowed him to return Pepsi back to its place as a major soft drink
manufacture, and in less than a decade Steele had more than tripled Pepsi's earnings.

Over the years Pepsi-Cola would go through a series of Presidents and CEOs. These
men would include Herbert Barnet, Donald M. Kendall, Vic Bonomo, John Sculley,
Roger Enrico, and Craig Weatherup with each of these men helping Pepsi grow by
leaps and bounds. The rest of this profile could go into the contributions of each of
these men, but then this profile would quickly turn into a book. Therefore the rest of
this profile will simply skim over the major happenings at Pepsi-Cola over the next
50 years.

Pepsi-Cola had seen huge success as a bargain soft drink. However, this was a twosided coin in that Pepsi-Cola was also seen as a cheap soda. The kind you bought at
the grocery store, but when guest were over you didn't show them the bottle. Pepsi
had to change this perception, and to do so they switched their marketing. Starting in
1958 Pepsi began to lose its reputation as a bargain soda, and instead started
becoming a soda that was preferred by fashionable young adults. By the mid 1960's
the United States was full of teenagers that had been born shortly after World War
II. They were the "Baby Boomers" and they were also the "Pepsi Generation." Pepsi
also continued to keep its product from becoming old fashioned by occasionally
making small changes in packaging throughout the years. They updated their logo,

Fortune Institute of International Business

27

Comparative Analysis of Soft Drink Market in Ghaziabad

they replaced the straight sided bottle with the "Swirl" bottle, and also moved from
the 12 ounce bottle to a 16 ounce bottle.

Pepsi also started providing other lines of products. They had introduced Teem (a
lemon/lime based soda), they had also purchased and went national with Mountain
Dew, and they introduced Slice, and started offering a diet version of Pepsi as well.
However, one of the biggest changes to occur to Pepsi-Cola happened in 1965 when
they merged with Frito-Lay and became PepsiCo, Incorporated.

In 1975 Pepsi introduced the Pepsi Challenge. This was a marketing campaign were
they would set up a blind tasting between their product and that of their archrival
Coca-Cola. During these blind taste tests the majority of participates picked Pepsi as
the better tasting of the two soft drinks. Over the next several years Pepsi would go
on to expand this "Pepsi Challenge" throughout the nation. They also would start
designing television commercials that reported the results of these tests to the public
at large. Pepsi also continued to invest heavily in advertising and started using
celebrities such as Michael Jackson, Tina Turner, Michael J. Fox, Joe Montana, Dan
Marino, Vice Presidential contender Geraldine Ferraro, and many others to help
them market to the "New Generation." It wasn't long before Pepsi became the
number one soft drink sold in American supermarkets and they were closing in on
becoming the most popular soft drink sold in the nation (the world would be next).

The Pepsi Challenge and the Pepsi advertising blitz were clearly having an effect
with more and more people switching from Coca-Cola to Pepsi. As a result Coca-

Fortune Institute of International Business

28

Comparative Analysis of Soft Drink Market in Ghaziabad

Cola made the decision to change their formula to taste more like Pepsi. Of coarse
Pepsi took advantage of this situation and really had a field day making fun of CocaCola. The president of Pepsi, Roger Enrico, gave his employees a day off by
declaring a holiday to celebrate the day they won the cola wars. Television
commercials, full-page ads in major newspapers, and lots of comedians all on their
own, took their shots as well. However, this piled by comparison to the reaction of
the general public. There was such uproar to this formula change that within a
couple of months Coca-Cola had brought back the original Coca-Cola. After
switching back to their original formula, Coca-Cola and Pepsi would continue to
battle it out for supremacy in the Cola wars. Pepsi has also continued to make some
great commercials. Whether they feature famous personalities such as Ray Charles,
Coquille O'Neal, or just everyday actors they always make you smile. (One of my
favorites is the one were a Pepsi deliveryman and a Coca-Cola deliveryman are in a
diner after making their deliveries. The Pepsi man slides his drink across the counter
for the Coke man to give it a try. After taking a sip the Coke man refuses to give the
drink back and huge fight insures). Pepsi also moved into other beverage categories
by working out deals with Lipton, Ocean Spray, and Starbucks. Pepsi has continued
to expand globally throughout the years until practically every nation on the face of
the earth either has a bottling plant of their own, or can at least buy a bottle of Pepsi.
By 1993, Pepsi-Cola profits had surpassed $1 billion, and in 1998 Pepsi celebrated
its 100th anniversary.

Fortune Institute of International Business

29

Comparative Analysis of Soft Drink Market in Ghaziabad

PEPSI IN INDIA
TURNOVER
Intonation sale as a % of total sale

35%

Total current investment in India

600cr.

New investment

400cr.

No. of employees

3000

No. of owned bottling plant

20

No. of franchises

27

No. of fountains

7150

New plants planed

INVESTMENT
Pepsi has set up a fully integrated operation India manufacturing research &
development. Marketing distribution and franchise covering fruit/vegetableprocessing export, marketing distribution and beverage. It has setup a hold company
accelerates growth throw new initiative and joint venture. Pepsi is fully committed
to India and the national objective of development of technology and acceleration
export and employment. Since its entry in 1989 it has brought in 1989 and it has
brought over US $400million in foreign exchange as well as technology and know
how and used it global net work to develop and export business, it has not
repatriated any money by way of royalty, know-how or dividend Pepsi company is
proposing to invest another US $ 150 million over next 2-3 year.

Fortune Institute of International Business

30

Comparative Analysis of Soft Drink Market in Ghaziabad

EMPLOYMENT
Pepsi business in India is highly employment oriented. The company currently
provides direct and indirect employment to nearly 45000 persons in its entire
management and workforce in India. Its beverage is very distribution intense. Pepsi
service every outlet at least 2-3 times a week in summer many outlet require to be
served both in the morning and in the evening it currently supply goods directly to
over 35000 outlet in India and every year Pepsi adds an additional 80000-100000,
outlets who start a shop with its products. A company salesman along with two
helpers cans at best service 40 outlets per day, i.e. for every 100 outlet that Pepsi
services. Its need s a3 people team. In addition, Pepsi has 19 companies owned
factory. Throughout the country and 21 factories owned by its Indian partners. It has
put 8 new green field sites, all of them in back word reign of different states.
Similarly their bottling partners have put up in last 3 year 8 new factories. Pepsi also
supply nearly 5000 fountain machines, free of cost to shopkeeper to sell it beverage
in cup and employ two from morning to evening to sell these cups hence, to
calculate very clearly the entire direct and indirect workforce its business. In
addition its provide employment to-

A. Small artisans, painters and etc engaged in market; place activity, such as
painting shops, boards, holdings, banners, wall painting and other form of
signage.
B. Thos engaged in manufacturing/supplying of raw material/packing material,
display material etc. e.g. sugar bottle, PVC sells, and paper cups CO2 etc.

Fortune Institute of International Business

31

Comparative Analysis of Soft Drink Market in Ghaziabad

LOCAL ACTION
Pepsi believes in attending local growth by:
A. Building infrastructure ahead Pepsi believes in building a suitable bottling
capacity and considerable requirement.
B. Focus on execution excellence-b Pepsi focus on capacity building and
maintaining adequate system for growth.
C. Strengthening bottler network- Pepsi believes in strengthening the bottler
network by giving them adequate training guidance and providing the
partnership. Pepsi believes in selecting best practice bottlers.
D. Research and presentation in rural and semi rural market.
E. Conducting consumer focus marketing program, which includes new
promotional schemes, discounts, events packaging etc.

CHANNEL MANAGEMENT
The partner type relationship with bottler- FOBO [Franchise Owned Bottling
Operation] as well as of the company adequacy CEO Mr. P.M.Suman Sinha
explains the relationship with his bottlers as:

Why we have a well-aligned bottling network. It is this. Way in which Pepsi Co.
India strengthen its marketing that gives it an edge. Every member of its sales team
is meticulously taught the merchandising and display skills that can team is
meticulously taught the merchandising and display scheme that can leverage the
companys bottling network to achieve highly visibility for the product.

Fortune Institute of International Business

32

Comparative Analysis of Soft Drink Market in Ghaziabad

VARIABLES
Need for quenching thirst, expressed a demand for a chilled product could be well
satisfied by any other soft drink available. It only then that the interaction between
the customer and the salesman bring food by pushing the product to the customer.
Some of others essential variables are;
# Ensuring range, reach and availability.
# Ensuring the visibility of the product.
# Ensuring the availability of the product.

Pepsi always focuses on this variable while carrying on its routines beverages
services. This is the reason for Pepsi increasing share in the market.

Fortune Institute of International Business

33

Comparative Analysis of Soft Drink Market in Ghaziabad

ENTERING OF PEPSI IN INDIA


Pepsi used mega marketing to enter the Indian market. Mega marketing is the
strategic co-ordination of a number of economic psychological political and public
relation skills to gain the co-operation of number of parties in order to enter and /or
operate in given market.

After coca cola war asked to leave India, Pepsi began to lay plans to seek
government approval for its entry over the objections of both domestic soft drink
companies ad anti-multinational legislators. Pepsi saw the solution to lie in making
an offer that the Indian government would hard to refuse. Pepsi offered to help
Indian export some of its agricultural product in a volume that would more than
cover the cost of importing the soft drink concentrates. Pepsi also promised to focus
considerable selling efforts area to help in their economics development Pepsi
further offered to transfer food processing packaging and water treatment
technology to India. Clearly, Pepsi strategx was to bundle a set of benefit that would
win the support of various interest group in India.

Thus Pepsi marketing problem went beyond the normal 4 Ps of operating


effectively in market. To enter India, Pepsi faced a 6 P marketing problem with
politics and public opinion constituting two additional Ps.

Fortune Institute of International Business

34

Comparative Analysis of Soft Drink Market in Ghaziabad

The beginning of the PepsiCo. Success story dates back to 1965 when it merged
with Frontky to constitute Pepsi co. international. Today, the Frito laid division
market over 100 varieties of snack foods.

Pepsi Company burgeoning bottle line and corporate acquisition are not the thinks
keeping it with limelight rather. It is the marketing survey and selling type that won
it the cola war as Roger Enrich CO of Pepsi Company stated in his book. The
company was committed to continuously changing the role of game the result even
the venerable coco cola came a proper and committed one of the biggest marketing
mistake by launching anew Cock. After the massive public outcry the company has
to re introduced the original formula of cock classic. Pepsi has so far made in roads
in 151 countries-150 before India including much-publicized ventures in the Soviet
United and China. Patience is Pepsi company long suit.

It started wooing Moscow way back 1959 and kept doing so until. It was allowed in
entry in 1974. In India the turnover has been around rate it 1800 cr. with sale 200
million cases annually at a growth of 30%.

At the base ever beverages business lays the all-important secret formula of success
the concentrate. In India the concentrate is prepared by Pepsi food Ltd.
representative of Pepsi-colo international. The plant is located at village Channo in
Punjab from there it distributed to the various bottling units who are either company
or franchise owned operated.

Fortune Institute of International Business

35

Comparative Analysis of Soft Drink Market in Ghaziabad

ORGANIZATION PROFILE
(DEVYANY BEVERAGES LTD)
Devyani Beverage Ltd is a FOBO-Franchise Oriented Bottling Operation of Pepsi
situated at Greater Noda. The Mr. R.K.Jaipuria, head of the Devyani Beverage Ltd.
established it in 1993. Its operating areas are whole Noida, Ghaziabad, Haridwar,
Agra, Aligar, Mathura, Faridabad, Gurgoan, Ballabghar and Jaipur.Devyani has the
capacity of 1400 bottles per minute.
Mr. R.K.Jaipuria was presented with the Donald M.Kondell bottler of the year
award the highest honors to any franchisee. He is thoroughly experienced in setting
up and running Pepsi cola bottling plant in India. The past experience of the family
in beverage industry in since the sixties when it had the first franchisee at Agra.
Family has total 14 bottling plant in India. The plants are at Greater Noida, Jaipur,
Delhi, Koshi Kalan, Nagpur, Hyderabad, Rajpur, Vishakapatnam, Guntur, Bhopal
and Cuttuck.
Recently the group has also singed a franchisee agreement of thricon restaurant
(India) par Ltd. to start a chain to restaurant in Northern India under the name of
PIZZA HUT by operating the 15 restaurants. The first four of its restaurants
already operational at
1. Jaipur, (Rajsthan)
2. Delhi
3. Agra, (U.P)
4. New Delhi

Fortune Institute of International Business

36

Comparative Analysis of Soft Drink Market in Ghaziabad

The group companies are doing very well in term of profitability, growth, market
leadership and good credibility with its business associated including Pepsi food
Ltd.
The beverage industry has witnessed a phenomenal growth over the last five-year
necessity capacity increase and building up to commensurate infrastructure to meet
to business growth, which is accordingly matched.

Fortune Institute of International Business

37

Comparative Analysis of Soft Drink Market in Ghaziabad

ORGANISATIONAL HIERARCHY

CHAIRMAN

V.P. (Sales)

ADM

TDM

CE

SALESMAN

ADM

TDM

CE

SALESMAN

Fortune Institute of International Business

TDM

CE

TDM

CE

SALESMAN

38

Comparative Analysis of Soft Drink Market in Ghaziabad

DISTRIBUTION OF ORGANISATION

Uttar Pradesh
Agra
Mathura
Firozabad
Aligarh
Jhansi
Etah
Bijnor
Ghaziabad
Meerut
Saharanpur
Haridwar
Dehradun

Rajasthan
Doper
Jaipur

Fortune Institute of International Business

Madya Pradesh
Galion
Bhind
Murena
Guna
Tikam garh

Haryana
Faridabad
Gurgoan
Rohtak
Panipat
Sonipat

39

Comparative Analysis of Soft Drink Market in Ghaziabad

DISTRIBUTION STRATEGY

A company can choose any of the following distribution type.

Exclusive Distribution
Selective Distribution
Incentive Distribution

Pepsi has adopted the intensive distribution strategy.

Incentive Distribution
A strategy of intensive distribution is characterized by placing the goods of service
in as many outlets as possible, when the consumers requires a great deal of location
convenience, it is important to after greater intensity of distribution. This strategy is
generally used for convenience items such as tabacoo products, gasoline, and soap
and snack foods and bubblegum.

Manufacturing are constantly tempted to move from exclusive or selective


distribution to more intensive distribution to increase their coverage and sales you
could find Pepsi in nursing homes, confectionary shop, department stores, you name
it and Pepsi as available.

Fortune Institute of International Business

40

Comparative Analysis of Soft Drink Market in Ghaziabad

DISTRIBUTION CHANNEL

Distribution channel can be described by the number of channel is involved. Each


layer of marketing intermediaries that performed same work in bringing the products
and its ownership closes to the final buyer is a channel in the soft drink industry of
different length are as follows.

Single level channel or zero level channel


This channel is called direct marketing channel, has no intermediary level. It
consists of a company selling directly to consumer e.g. when we are delivering to
the party order of certain number of crates of soft drinks to consumer directly.

Second level channel


We have three wheelers who are supplying not only to the small shopkeepers but
also to the house the remaining channels are indirectly marketing channels. Second
contain one intermediary level. In consumer markets, this level is typically a
retailers.e.g. We sell bottle to retail outlets that in turn sell them to find consumer.

Third level channel


Channel third contains two intermediary levels, a whole seller and retailers, in this
system we sellers our products in large quantity to the wholesaler of called as
agencies in our trade who them sell then to the small retailers. This type of system is

Fortune Institute of International Business

41

Comparative Analysis of Soft Drink Market in Ghaziabad

adopted when we are not able to our agencies so that our product could reach to the
retailers where our van or three wheelers scooter cannot go.

Multi level channel


This channel contains three intermediaries level. The wholesalers,
jobber and retailers. In this the job of the jobber is that, the purchase the
crates from wholesalers and then sells them to the retailers. This system
is adopted by in these cases where the agency does not have its own
distribution system.

Fortune Institute of International Business

42

Comparative Analysis of Soft Drink Market in Ghaziabad

MANUFACTURING PROCESS
The term soft drink normally denotes carbonated flavored .the soft drink are in great
demand not only because of the desirable quantities of taste and flavored but also
because they are readily available in sterile bottles and therefore are safe for
quenching the thirst any where out doors.

Water
The water available either from the municipal supply or from bore well is treated by
cognation or reverse osmosis process to obtain germ free and soft water both for
manufacturing and beverages and for washing the bottles, the water treatment
therefore consist of chemical treatment filtration through carbon filters and soft any
with a softener or a cognition or reverse osmoses depending on the waters
characteristics.

Sugar Syrup Preparation


The next step is the prep ration of raw syrup. This is prepared by dissolving,
measured quantity of sugar in the treated water. For this purpose a steam jacketed
stainless steel tank of adequate capacity with an agitator is used where in sugar is
dissolved in hot water up to 85 c for about 20 minutes to kill the microorganisms.
The syrup is then filtered through a filter press using additives like an activated
carbon and high low super cell so that syrup after filtration is free from impurities.
The hot filtered syrup is then passed through S.S. platter heat exchanger to cool it to
room temperature.

Finished Syrup Preparation


The ext step is the preparation of ready syrup. In this step the raw syrup room after
filtration and cooling is taken in six times in which the correct quantity of additional
treated water and essence is also added. The ready syrup is mixed thoroughly with

Fortune Institute of International Business

43

Comparative Analysis of Soft Drink Market in Ghaziabad

an agitator provided in the six ranks and allowed to mature according to maturation
period specified for each type of flavor.

Beverages Preparation
The ready syrup after the maturation is pumped I to the intermix unit where by the
ready syrup is further diluted by addition a treated water so that the beverage are
ready. This beverage is then chilled to very low temperature (ice) and then pumped
in to a saturator (carbonator). Carbonator is a pressure vessel made to stainless steel
and consisting of number of S.S film plates to form a very thin film of the beverages
for absorption of carbon die oxide which is injected in the carbonator vessel. After
carbonating the soft drink are ready for filling in the bottles.

Filling
Filling is done through automatic computer pressure filters, which fills at a very
rapid speed; the bottlers are filled on continuous basis to exact crowns caps
automatically.

Quality Control
The success of a product in the market place depends on its quality. The soft drink
industry adopts strict quality control procedure to analyze quality of the product is
picked that up after filling and started out for gas content, sugar content organization
micro biological quality. Hence the quality invariably remains constant because of
continuous on-line checking.

Fortune Institute of International Business

44

Comparative Analysis of Soft Drink Market in Ghaziabad

PRESENT STATUS OF PEPSI IN GHAZIABAD


REGION

Ghaziabad is a well-known place because its near to Delhi with the star t of summer
the demand for soft drink, juice and etc. starts growing high. With the start of season
the demand of Pepsi also high.

Presently Pepsi is having ten distributors, which are looking after Ghaziabad reason.
They have almost covered all the corners of the Ghaziabad and due to this season
only Pepsi is able to reach.

In places where Coke is not able to reach and this has helped Pepsi to achieve a high
market share then its competitors.

Pepsi had almost taken the market from Coke in all respect parameters. Company is
having better promotion policy and distribution than Coke. Last year company had
spent near about 2 cr. on their promotion for Ghaziabad region only.

With the present status it can be assumed that the times is not for when Pepsi will
take the overall market and Coke will not find any place to survive.

Fortune Institute of International Business

45

Comparative Analysis of Soft Drink Market in Ghaziabad

VOLUME PURCHASED BY RETAILERS


S.No.

Outlets Name

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.

Anil Pan Bhandar


Yadav Tea Stall
Ramesh Pan Corner
Bharat Pan Corner
Bhole Shankar Store
Natumi Tea Stall
Tripati Restaurant
Gopal Pan Corner
Mohan Tea Stall
Bangla Sweet House
Rohit Juice
Jagdishprasad Corner
Salma Hotel
Dhyanchand Store
Ambey Confctoinary
Anuja Store
Shiv Pro. Store
Yadav Tea Stall
Arora Tea Stall
Banti Pan Corner

PERCENTAGE:

PEPSI

COKE

3
3
2
1
4
4
7
3
2
6
5
4
7
5
4
4
3
2
2
3

2
1
2
3
2
3
4
4
5
4
4
2
5
4
3
2
1
1
-

PEPSI55.55%
COKE44.45%

SURVEY CONDUCT AT: Lohia Nagar, Navyuk Market

Fortune Institute of International Business

46

Comparative Analysis of Soft Drink Market in Ghaziabad

VOLUME PURCHASED BY RETAILERS


1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.

0UTLETS NAME
Indonepal Fast Food
Mohan Pro. Store
Agrawal Kirana Store
Vardhaman Gen. Store
Setup Pro. Store
Rainbow Ice-cream Store
Bon-Taj Restaurant
Muskan Store
Sapna Confectionary
Uncle pastry Shop
Vakil Egg
Jiababa Kishan Store
Navin Pro.Store
Shyam Pro. Store
Wasim Pro. Store
Parvesh Pro. Store
Shiv Pro. Store
Simran Gen. Store
Sandeep Juice Corner
Caudhary Sweet House

PERCENTAGE:

PEPSI
7
3
2
3
1
5
2
8
2
5
1
2
5
3
2
2
7
2
5

COKE
3
5
7
5
4
3
4
2
4
2
3
3
3
2
5
7
4
3
3
3

PEPSI44.18%
COKE55.82

SURVEY CONDUCT AT: Sector-23

Fortune Institute of International Business

47

Comparative Analysis of Soft Drink Market in Ghaziabad

VOLUME PURCHASED BY RETAILERS


S. NO.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.

0UTLETS NAME
Tyagi Gen. Store
Sanjay Misthan Bandar
Mamta Pro. Store
Bhagwati Tea Stall
Naresh Sweets
Caudhary Old Dept.
R.B.Gen. Store
Bansal Pan Corner
Chaudhary Dabha
Goswani Traders
Milap Hotel
Goyal Chat Corner
Green Sweets
Chaudhary STD
Bangali Kirana Store
Sachin Gen. Store
Bhandary Pan Bhandar
Sheela Dept.
Ever Green Sweets
Ganga Kirana Store

PERCENTAGE:

PEPSI
5
9
2
5
2
7
3
3
2
3
8
5
9
5
7
3
3
5
7
5

COKE
2
1
2
5
5
2
1
5
1
3
2
3
2
3
1
1
3
3
2

PEPSI55.71%
COKE44.29%

SURVEY CONDUCT AT: Nand Goan

Fortune Institute of International Business

48

Comparative Analysis of Soft Drink Market in Ghaziabad

VOLUME PURCHASED BY RETAILERS


S. NO.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.

0UTLETS NAME
Shiv Gen. Store
Best Confectionary
Bhatia Pro. Store
Hina Confectionary
Shiv Pro. Store
Devashanee Gen. Store
Medien Store
Sailesh Store
Saini Pan Corner
Siani Sweets
Vijay Tea Stall
Marigold Medical Store
Kiran Study
Chimani Restaurant
Pal Pan Bhandar
Ramu Pan Corner
Anand Super Store
Goshwal pneer Bhandar
S.F. Gen. Store
Puneet Confectionary

PERCENTAGE:

PEPSI
5
1
3
3
2
5
5
3
2
5
2
7
5
3
2
2
5
1
2
5

COKE
3
8
5
7
5
4
7
5
3
2
4
4
8
5
4
5
7
7
6
5

PEPSI43.07%
COKE56.93%

SURVEY CONDUCT AT: Raj Nagar

Fortune Institute of International Business

49

Comparative Analysis of Soft Drink Market in Ghaziabad

VOLUME PURCHASED BY RETAILERS


S. NO.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.

0UTLETS NAME
New Street Conf.
Parivar Plaza
Bubbles Conf.
Shree Ganesh Conf.
Tyagee Juice Corner
Honaly Gen. Store
Shree Dept. Store
Brijwasi Property dealer
Shukham Pro. Store
Ambica Conf.
Vijay Conf.
Pal Gen. Store
New Uddapi Res.
Malik Pan Corner
Navjyoti Pro. Store
Babbar Sweets
Yadav Sweets
Raj Sweets House
Ved Om Conf.
Ambika Pro. Store

PERCENTAGE:

PEPSI
5
3
7
3
3
5
2
2
1
3
5
3
2
7
2
3
5
3
1
2

COKE
2
5
4
7
9
6
5
6
5
5
3
4
4
3
5
5
7
3
4
5

PEPSI42.86%
COKE57.14%

SURVEY CONDUCT AT: Neharu Nagar, Gandhi Marg

Fortune Institute of International Business

50

Comparative Analysis of Soft Drink Market in Ghaziabad

VOLUME PURCHASED BY RETAILERS


PEPSICOKES.No.
941.Outlets
2.Shyam
Store
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.

Pandey Pan Bhandar

Mahal Kirana Store


Langey Milk Store
Hello Point
Tej Pan Corner
Subham Pan
Mohan Pan Corner
Panditjee Storev
Raj Pan Corner
Subhas Pan
Mangal Store
Bikaner Sweet
Vijay Pan
Anil Pan
Rakesh Juice Corner
Rohin Pan Bhandar
Bansal Sweets
Rashmi Conf.
Aggrawal Kirana Store

5
7
11
3
2
3
1
2
2
7
7
5
3
6
5
3
5
5

4
3
3
5
1
1
2
2
1
3
2
2
1
2
3
5
2
1

PERCENTAGE:

PEPSI57%
COKE43%

SURVEY CONDUCT AT: Bus Stand, Patel Nagar

Fortune Institute of International Business

51

Comparative Analysis of Soft Drink Market in Ghaziabad

VOLUME PURCHASED BY RETAILERS


S. NO.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.

0UTLETS NAME
Mahadev Old Drinks
Amit Tea Stall
Sri Ram Gen. Store
Chaudhary Tea Stall
Sri Om Tea Stall
Kishan Pan Bhandar
Agrawal Kirana Store
Sonu Gen. Store
Prince Stationary
Mittal Stationary
Mittal Gen. Store
Shri Giriraj Store
Caudhary Sweets
Sachin Stationary
Titu Store
Swtee Conf.
Jai Durga Pro. Store
Sunil Pro. Store
Panditjee Gen. Store
Lucky Gen. Store

PERCENTAGE:

PEPSI
4
3
7
5
3
3
7
9
5
3
3
5
7
7
2
3
5
2
3
5

COKE
5
5
4
3
5
2
5
7
5
5
1
2
5
3
3
1
2
2
1
2

PEPSI51.72%
COKE48.28%

SURVEY CONDUCT AT: Vijay Nagar

Fortune Institute of International Business

52

Comparative Analysis of Soft Drink Market in Ghaziabad

VOLUME PURCHASED BY RETAILERS


S. NO.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.

0UTLETS NAME
Karan Tea Stall
Shyam Pal Hotel
Sagar Restaurant
Dilawar Pan Cornar
Chaudhary Pan Corner
Kashyap Pan Corner
Pagari Pan Corner
Prem Pan Corner
Sai Fast Food
Goswami Restaurant
Yogesh Pan Bhandar
Sidharat Pan Dukan
Ajgar Pan Bhandar
Chadhary Cold Drink
Yogesh Cold DrinR
Rahul Kirana Store
Gyaneswar Stall
Hotel Airsonea
Muskan Restaurant
Prakash Tea Stall

PERCENTAGE:

PEPSI
5
5
9
4
3
5
5
3
8
7
3
5
4
15
12
7
4
7
9
2

COKE
3
3
5
7
6
5
3
1
5
4
5
2
1
5
7
5
2
4
5
5

PEPSI58.28%
COKE41.72%

SURVEY CONDUCT AT: Hi-Way

Fortune Institute of International Business

53

Comparative Analysis of Soft Drink Market in Ghaziabad

VOLUME PURCHASED BY RETAILERS


S. NO.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.

0UTLETS NAME
Chaudhary Swetts
Mishra Pan Bhandar
Ramshankar Pan
Aggrawal Store
Jain Pro. Store
Uphar Gen. Store
K.K.Agrawati Store
Arhant Pro. Store
Street Corner
The Fullsotop Pastry
Daily Need Store
Devendra Pan Bhandar
Shivam Sweets
Jaggi Confe.
A to Z Shopping Center
Sri Bangali Store
Amit Chat Bhandar
Kakkar Gen. Store
Sushil Gen. Store
Shakati Hello Point

PERCENTAGE:

PEPSI
5
5
3
7
5
6
3
3
7
8
6
3
7
7
5
6
4
3
3
5

COKE
3
5
7
2
3
3
5
1
2
3
3
2
2
4
3
3
1
2
5
2

PEPSI54.87%
COKE45.13%

SURVEY CONDUCT AT: Kavi Ngar

Fortune Institute of International Business

54

Comparative Analysis of Soft Drink Market in Ghaziabad

VOLUME PURCHASED BY RETAILERS


S. NO.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.

0UTLETS NAME
Sureshchand PCO
Shaahee Pan
Arepta Pan
Sweet Om Sweets
Manglam Pan Corner
Sangam Pan Bhandar
Lokesh Pan Bhandar
Quality Food
Litle Cheef
Ghanshyam Bhog
Sakil Tea Stall
Radha Ram Tea Stall
Shaggu Store
RajKumar Tea Stall
Afser Tea Stall
S.D Store
Anil Tea Stall
Mahesh Tea Stall
Subham Canteen
Sharma PCO

PERCENTAGE:

PEPSI
3
2
3
5
3
2
2
4
7
5
2
4
5
3
3
2
5
2
5
6

COKE
7
7
5
5
6
7
5
3
3
4
4
3
5
1
1
4
2
5
2
2

PEPSI57.59%
COKE42.41%

SURVEY CONDUCT AT: Railway Station

Fortune Institute of International Business

55

Comparative Analysis of Soft Drink Market in Ghaziabad

VOLUME PURCHASED BY RETAILERS


S. NO.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.

0UTLETS NAME
Pawan Kirana Store
Balajee Restaurant
Swati Restaurant
Jai Bhole Bhandar
Raju Pan
Sachin Kirana Store
Yadav Gen. Store
Mahendar Juice corner
Sachin Kirana Store
Vikash Kirana Store
Gopal Bhandar
Sangam Hotel
Narzug Hotel
Sonu Dhaba
Mila Hotel
Ankur Sweets House
Sharma Pan Bhandar
Visha Hotel
Pappu Kirana Store
Jain Confe.

PERCENTAGE:

PEPSI
7
5
3
3
2
3
5
3
2
6
4
7
5
5
3
2
2
5
3
2

COKE
5
8
5
5
4
3
2
1
2
3
5
5
3
7
6
3
1
2
3
2

PEPSI49.14%
COKE50.56%

SURVEY CONDUCT AT: Dadri Road

Fortune Institute of International Business

56

Comparative Analysis of Soft Drink Market in Ghaziabad

VOLUME PURCHASED BY RETAILERS


S. NO.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.

0UTLETS NAME
Ashok Transport Co.
Manoj Kirana
Suresh Tea Stall
Taneja Tea Stall
Dinesh Travel
Bille Di Hatti
Litle Confe.
Ankit Pro. Store
Preeti Confe.
Bal Kishan Store
Renuka Store
Meva Pan Bhandar
Rahul Pro. Store
Salesh Pan Bhandar
Mteswary
Chotelal Tea
Garg Pan Bhandar
Sri Shakti Jan Store
Ashok Chand Store
Bhaijee Sweets

PERCENTAGE:

PEPSI
3
5
2
2
3
2
5
5
3
3
2
2
3
4
7
3
4
5
5
3

COKE
5
4
5
4
3
4
3
3
4
5
4
3
4
3
5
5
3
4
6
5

PEPSI52.23%
COKE47.77%

SURVEY CONDUCT AT: Wall City-Delhi Gate

Fortune Institute of International Business

57

Comparative Analysis of Soft Drink Market in Ghaziabad

VOLUME PURCHASED BY RETAILERS


S. NO.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.

0UTLETS NAME
Sachin Dhaba
Sagar Pan Bhandar
Vinod Pan
Latapal Sweet Corner
Adesh Chole Bhature
Kumar Medical Store
Chaudhary Sweets
Shree Confe.
Gupta Pro.Store
PratibhaDept. Store
Shivam Sweets
Shubham Varient Store
SonuTea Stall
Monica Confe.
Bhati Super Store
Kali Gen. Store
Ruby Gen. Store
Sangeeta Pro. Store
Payal Peeko Centre
Kajal Confe.

PERCENTAGE:

PEPSI
7
5
5
3
4
2
5
7
3
3
5
3
9
5
3
4
6
4
5
5

COKE
5
8
5
5
4
5
2
2
1
2
3
1
4
3
2
3
4
5
7
2

PEPSI52.65%
COKE47.35%

SURVEY CONDUCT AT: Pratap Vihar

Fortune Institute of International Business

58

Comparative Analysis of Soft Drink Market in Ghaziabad

VOLUME PURCHASED BY RETAILERS


S. NO.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.

0UTLETS NAME
Chaudhary Tea Stall
Hivam Pro. Store
Desi Canteen
Mahesh Super Store
Hello Gift Shop
Sachin Juice Corner
Sanjiv Pan Bhandar
Lokesh Gen. Store
Garg Dept.l Store
New Ambey Trader
Akriri Medical Store
Samta Mithan Bhandar
Deepak Pan Bhandar
Suraj Confe.
Aggrawal Sweets
Chirag Juice
Shivam Chaupey
Soni Pan Bhandar
Monu Pro. Store
Taj Beauty Palace

PERCENTAGE:

PEPSI
3
5
3
2
9
3
5
4
4
2
6
3
5
5
3
3
4
7
5
5

COKE
7
8
5
5
4
5
3
2
6
5
5
6
3
7
1
2
3
5
7
5

PEPSI55.5%
COKE44.45%

SURVEY CONDUCT AT: Shastri Nagar

Fortune Institute of International Business

59

Comparative Analysis of Soft Drink Market in Ghaziabad

MARKET SHARE OF PEPSI IN GHAZIABAD-2003

Others
7%
Pepsi
49%
Coke
44%

Pepsi

Cock

Others

MARKET SHARE OF PEPSI IN ALL OVER INDIA-2003

Others
10%
Pepsi
43%

Coke
47%

Pepsi

Fortune Institute of International Business

Coke

Others

60

Comparative Analysis of Soft Drink Market in Ghaziabad

YEARLY ALES OF PEPSI IN GHAZIABAD


20
18
SALES IN PERCETAGE

16
14
12
10
8
6
4
2
0
JAN

FEB

M AR

APR

M AY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

MONTHS

Fortune Institute of International Business

61

Comparative Analysis of Soft Drink Market in Ghaziabad

MARKET SHARE OF SOFT DRINK FOR LAST 3 YEAR IN GHAZIABAD

60
50
40
30
20
10
0
2000

2001

2002

YE A R S

PEPSI

COKE

OTHERS

MARKET SHARE OF COLD DRINK IN GHAZIABAD

COKE
44.58%

PEPSI
55.42%

PEPSI

Fortune Institute of International Business

COKE

62

Comparative Analysis of Soft Drink Market in Ghaziabad

SWOT ANALYSIS OF D.V.L

STRENGTH
1. Wide market coverage.
2. Monopoly shops in good quantity.
3. Frequent flow of sales promotion schemes.
4. No shortage of flavors.
5. Old and established retailers.

WEAKNESS
1. National canalization of sales promotion schemes.
2. Improper market coverage.
3. National merchandising of POP materials.
4. No proper procedure for redressed of grievances of retailers.
5. No proper maintenances of glow sign and coolers.

OPPORTUNITIES
1. Railway station, Bus stand and Restaurants were observed as areas of high
potential. The company should concentrate on these selling points and stress
on high promotional efforts through these points.
2. There should be considerable efforts to be made by the company in
increasing the number of monopoly outlets in Ghaziabad. This has to be a

Fortune Institute of International Business

63

Comparative Analysis of Soft Drink Market in Ghaziabad

head on move against the various promotional strategies adopted by the


competitors.
3. During the training it was found that all the areas in the interior-of-city
(routes) had a bigger prospective room space for product availability.
4. Growing market share.

THREATS
1. The company has a major threat from the competitors schemes.
2. Not sufficient interaction with the retailers serious threat to the company.

Fortune Institute of International Business

64

Comparative Analysis of Soft Drink Market in Ghaziabad

FINDING AND OBSERVATION

CONSUMER SURVEY

55% of total respondents belong to age group between 20-30 years, 16%
between 10-20 years and 13% is between 30-40 years.

62% of total respondents were male and 48% were female.

40% of respondent were holding household income between Rs. 8000-12000


and 32% were having household, income between Rs. 4000-8000 and 35% were
having more than Rs. 12000 as their monthly house holding income.

95% of respondent drink soft drink.

57.89% people prefer to think thundering Cola flavor, 25.2% respondent but
tohave mild (orange) flavor and only 3.76% respondent prefers to have tingling
(Clear lemon) flavor.

29.16% respondent but soft drink because of it taste, 20.83 respondents buy soft
drink to availability, 12.05% respondent but soft drink, due to brand image and
8.33% people buy drink due to its quality.

55% respondents favorites soft drink is Pepsi and 45% respondents favorites
soft drink is Cock at Ghaziabad region.

59.83% respondents get awareness of soft drink through advertisement, 12.82%


respondent get awareness through friend and relatives, 10.26% respondents get
aware about soft drink through print media and only 4.29% respondent get aware
through hoarding.

Fortune Institute of International Business

65

Comparative Analysis of Soft Drink Market in Ghaziabad

According to 100% respondent peps easily available in the outlet.

46.32% respondent in Ghaziabad prefer to buy glass bottle as their favorite pack,
29.47% respondent prefer to buy their favorites Pepsi pack in fountain glass and
only 14.4% people prefer to buy pet bottle.

Youth and adult of the family i.e. almost 75.22% in total take most of the
purchase Decision.

Almost 21.36% respondent consumer 10-20 bottles per month and 21.05%
consumer 20-30 bottles per month.

DEALERS SURVEY

83% of the consumer encountered is aware about the Pepsi brand. It quality taste
etc.

60% consumer between 20-25 of age group prefer to drink Pepsi, 25%
consumer between 15-20 years prefer to drink Pepsi and 15% of consumer
below 15 year like Pepsi.

According to dealers/sellers of Pepsi hold the opinion that 20% of people are
there who changes their opinion; only 35 dealers hold 100% opinion that 2040% consumers really change their preference.

70% dealer hold heir opinion that consumer prefer to buy 200 ml bottles of soft
drinks.

50% dealers hold the opinion that both male and female prefer to drink Pepsi as
their best choice.

Fortune Institute of International Business

66

Comparative Analysis of Soft Drink Market in Ghaziabad

53% dealers hold the opinion that consumer preference depend on brand name
and 47%dealers holds the opinion that consumer preference depends upon
advertisement.

According to 55% dealers customers buy Pepsi due to brand image and 30%
dealers say. Customers buy soft drink due to its taste and 15% dealers says that
customer buys soft drink because it is easily available.

40%dealers says that schemes have impact on customers preference between


20-30% age group of people.

60% dealer says that below 15v years of consumers are mainly affected by
schemes.

69% dealers says that company should deliver distribution network but only
45% hold the opinion that it will affect their business.

Fortune Institute of International Business

67

Comparative Analysis of Soft Drink Market in Ghaziabad

RECOMMENDATIONS

Company should emphasis more on advertisement and publicity so as to create.


Awareness among the customers

Only 30% people are aware about all the products/brands sold by Pepsi co.
therefore company should try to create awareness among customer about all its
products.

A company wants to capture maximum market share, it should give equal


importance to all the brands of soft drinks.

Company should emphasis on selling per bottles for 200ml & 300ml at a lower
difference price; it is portable and convenient to carry.

Consumer preference change according o availability, therefore the company


should provide their brands at maximum outlets at possible.

Company should take care of cleanliness of the bottles rusted crown and
maintain the quality of the product especially at a time of packaging.

Company should get the schemes printed on the levels of the bottles/products as
well as on

the free items provided with soft drink so that consumer gets aware

about the schemes and not cheated by the retailers.

Company should inform each and every outlet about the schemes before time or
on time and check them. Weather they are providing them to consumer in the
proper manner.

Company should conduct survey quarterly to see weather consumers are


satisfied with the

product and services.

Schemes have large impact on consumer preference therefore a company should


launch different and attractive promotional schemes frequently.

Company should encourage to the consumers to purchase more and softer drinks
so as to develop the taste and sales.

Company should start home delivery and provide paper service to consumer.

Fortune Institute of International Business

68

Comparative Analysis of Soft Drink Market in Ghaziabad

SUGGESTIONS

Company can open some monopoly outlets in the prime markets and business
centers of Ghaziabad, which will be looked after by company more employee.
Moreover these outlets can also tackle the demand and supply problem, through
these outlets others retailers can also know the scheme flourishing in the market and
distributor cannot cheat with retailored.

During peak season when demand needs the supply, the company faces the problem
of short supply. To meet out this problem, company can maintain the inventory of 23 months. Now it has been scientifically proved that soft drink bottles can be kept
for six months without change in taste. But it should be seen carefully that the old
stock of soft drink should be used first (FIFO).

Regarding credit facility, company should give more credit to the distributors to
encourage them for giving more sales to the company. Moreover without increasing
percentage of profit o crates, this facility will work. Instead of giving schemes on
per crates system, company should interdict scheme on volume of crates purchased.
This will increase the stock of retailers as well as sale of the company too.

Company should offer for more consumers schemes with keeping the consideration
of the retailer, as it is very essential for Ghaziabad market to change it from retailer
to final consumer market. Teenagers should be target of the company and this is
conforming through study.

Fortune Institute of International Business

69

Comparative Analysis of Soft Drink Market in Ghaziabad

Delivery of soft drink should be before 10:00 am so that retailer can serve chilled to
the consumers in the afternoon and there cannot be any storage.

Company runs a lot of promotional scheme o motivate consumers for their brands
with that they should increase the number of hoardings and should introduce glow
signs board of all the brands of the company separately or combined. As the quantity
of bars and restaurant are good in Ghaziabad so much more promotion activities
should be added for this keeping the consideration of the competitors scheme for
these purpose personnel contacts, meetings and good relationship with the
addressees person is must. If this activity are fulfilled them it will be beneficial in
the off-season too. As this is segment in which demand is always present and all the
brands are consumed.

The company should participate in local festivals, fairs and all type of public meets.
This is because such activity are an important and commonalty seen feature.

Fortune Institute of International Business

70

Comparative Analysis of Soft Drink Market in Ghaziabad

CONCLUSION

After doing the exhaustive market survey and research analysis, we see that there is
a vast scope and potential for Pepsi soft drink and he very qualitative aspect of these
brands have made popular in Ghaziabad market

After a detailed analysis we come to a number of conclusions as to why the Pepsi


soft drinks are very much popular in Ghaziabad.

QUALITY
The first reason is of quality, obviously in this competitive age and an intelligent
consumer in front of you no company can afford to ignore the vital issue of quality.

PRICE
Why doing analysis 15% consumers complained about the price but from the
general tendency, it was seen that when a consumer felt thirsty and was in a
company of friends, price took a back seat and the consumers opted for their favorite
brand.

SYSTEM
The distribution system of the company is very efficient. In fact every day the trips
are made why the mini trucks, three wheelers caring crates are replaced at the retail
outlets according to the demand.

Fortune Institute of International Business

71

Comparative Analysis of Soft Drink Market in Ghaziabad

LOCAL ADVERTISEMENT
The company has created brand awareness among the consumer through constant
advertising. The retail outlets in the various part of the city display various
advertising themes, bill-boards are painted with eyes catching advertisements,
moreover, the mini trucks caring the crates of soft drink are beautifully painted with
various brands and a part from the local news paper carry the advertising captions
periodically.

REDDRESSING CONSUMER
COMPLAINTS; the company has established a system that keeps track of consumer
complaints. It has well set-up network which contacts retailers, consumers, records
and their views about the products, the quality, availability of soft drink in time,
price etc.

Fortune Institute of International Business

72

Comparative Analysis of Soft Drink Market in Ghaziabad

QUESTINNAIRE FOR CONSUMER

1. Write done the first brand name that comes in your mind regarding soft
drinks?
.

2. What others brands of soft drink can you recall?


a) ..

e)

b) ..

f).

c) ..

g).

.
d) ..

h) .

3. What is the frequency of soft drink you take?


(Tick you prefer).
a) Once in a week

b)

Twice in a

week
b) Thrice in a week

d) .Any others

4. What brand do you have on occasions?


(Tick you prefer).
a) Pepsi
c) Mirinda

b) Coke
d)

Thumps up

Fortune Institute of International Business

73

Comparative Analysis of Soft Drink Market in Ghaziabad

e)..Mountain Dew

.f) Fanta

g)..Mix of Pepsis brand

h) .Mix of Coke

brand
i) .Mix of all brands

5. Which soft drink gets you best freshness?


(Tick your choice).
a) Pepsi

e) .. Slice

i) .7up

b) Mirinda

f) .Thums up

j) .Limca

c) Coke

g) ..Fanta

k)

M.Dew
d) Maza

h) ..Sprite

6. Have you any complain about the soft drinks?


(Just tick).
a) . Price to high

d)

Non-

availability near by
b) . Dirty bottles

e) Shortage

c) . Bad quality

f) Others reason

7. Which brand do you prefer mostly?


(Just tick).
a) ..Pepsi

f) Coke

b) ..Mirinda (O)

g) Thums up

Fortune Institute of International Business

74

Comparative Analysis of Soft Drink Market in Ghaziabad

c) ..Mirinda (L)

h) Sprite

d) ..M.Dew

i) Fanta

e) ..7up

j) Maza

8. Can you change your mind for others brand, if the brand is not available in
shop
which you prefer? (Just tick choice).
a) .Yes
b) .No

9.

Choose your most popular brand of soft drinks for each of the following
criteria?
(Just tick).

Criteria

Pepsi

Mirinda

M.Dew

Slice

Coke

Thums
up

Sprite

Fanta/Maza

Something
Special
Strong
After Taste
Really
Refreshing
Relaxing
Distinctive
Flavor
Any Other

Classification Data

Fortune Institute of International Business

75

Comparative Analysis of Soft Drink Market in Ghaziabad

1. Name: -
2. Sex:- Male Female
3. Age: - ..
4. Occupation: - .
5. Income Group:- 5,000-10,000 .10,000-15,000
..15,000-20,000. Above 20,000

Thanking you for your co-operation.

Fortune Institute of International Business

76

Comparative Analysis of Soft Drink Market in Ghaziabad

DEALERS AND RETAILERS QUESTIONNAIRE

Name of outlet: -
Address: -

2. Which type of customer encountered?


(Just tick)
a) Aware of the brands.
b) Partially aware
c) Ignorant.

2. Which soft drink is mainly preferred?


a) ..Pepsi brand
b) ..Coke brand

3. Percentage of people who change their preference openly?


a) ..Below 20%
b) ..20-40%
c) ..40-60%
d) ..60-80%
e) ..Above 80%

Fortune Institute of International Business

77

Comparative Analysis of Soft Drink Market in Ghaziabad

4. Which volume of pack does customer prefer?


200 ML
a) 300 ML
b) 500 ML
c) 1 Ltr.
d) 2Ltr.

5. Which sex group preference the high degree of Pepsi brand?


a) Male
b) Female

6. Customer preference depends on:


a) ..Brand Name
b) ..Advertisement
c) ..Availability
d) ..Discount & Schemes

7. Do schemes have impact on customers preference?


a) Yes
b) No

8. Impact of schemes on customers preference is

Fortune Institute of International Business

78

Comparative Analysis of Soft Drink Market in Ghaziabad

a) Below 10%
b) 10-20%
c) 20-30%
d) 30-40%
e) Above 40%

9. Which age group is mainly affected by schemes?


a) Below 15 years
b) 15-25 years
c) 25-35 years
d) Above 35 years

10. Do you think company should start home delivery distribution network?
a) ..Yes
b) ..No

11. Do you think home delivery distribution will affect your sales?
a) ..Yes
b) .N0
12. Any other suggestion to the company from?

Thanking you for your co-operation

Fortune Institute of International Business

79

Comparative Analysis of Soft Drink Market in Ghaziabad

BIBLIOGRAPHY

1. Pepsi websites
2. A & M
3. BUSINESS WORLD
4. INDIA TODAY
5. News papers

Fortune Institute of International Business

80

You might also like