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n November 2007, PepsiCo announced a restructuring initiative to split the

company into three units, one for food in the US, one for beverages in the US
and one for food and drinks abroad
Product
!everage Products " #iet Pepsi, $atorade, %ountain #e&, 'hirst (uencher,
'ropicana, )*ua+na !ottled ,ater, Sierra %ist
Savory -ood Snacks " -ritos Corn chips, Cheetos, .u/es Potato Chips, 0ays
Potato Chips, 'ostitos, #oritos
1ther -ood Products " breakfast cereals, cakes and cake mi2es
PepsiCo recently created !aked Snacks North )merica !usiness Unit to meet
consumer3s interest in more nutritious snacks and foods
Price
42penses related to transportation, ingredients and labor continue to
pressure the beverage industry to&ard price increases
PepsiCo3s drink pricing strategies may be heavily in5uenced by its &orking
relationship &ith ,al6%art &hose lo& price themes put pressure on PepsiCo to
hold do&n prices
'he company strives to cut or maintain current prices by cutting overhead
and re6engineering the manufacturing process
PepsiCo is e2panding its use of ine2pensive and recyclable plastic bottles7
nevertheless the company has instituted some price increases in recent
years, speci+cally in its overseas %).84'S such as Ne& #elhi and #uba
Place
PepsiCo is primarily a US based company &ith appro2imately 92: of its
revenues located in the states
PepsiCo is in the midst of making a ;<, 000 million investment in China, and a
;900 million investment in =ndia !oth initiatives are part of its e2pansion into
international %).84'S and a lessening of its dependence on US sales
=n addition the company plans on ma>or capital initiatives in !ra?il and
%e2ico
'he company is also ac*uiring .ussia3s leading @uice Company, 0ebedyansky,
and A ,ater located in the United 8ingdom
PespsiCo %arketing %i2
=n <BC9 Derman , 0ay of the -rito60ay Company and #onald 8endall of Pepsi6
Cola formed PepsiCo =n <BEC operations &ere combined under PepsiCo
,orld&ide -oods and PepsiCo ,orld&ide !everages =n 200< PepsiCo merged
&ith (uaker 1ats to form a ;29 billion company PepsiCo restructured in 2007
dividing the company into three units3 food in the US, #rinks concentrated in
the US and -ood and #rinks %).84'4# abroad ,ould you like to take a
lesson on the marketing mi2F
Promotion
PepsiCo instituted a so called Pepsi StuG promotion &hereby customers could
accumulate Pepsi Points from buying various products these points could be
used to by other products, most recently )ma?on%PH
) recent promotion involving the NI Iankees &as not &ell received &hen not
enough free tickets &ere made available
=n 200E PepsiCo employed 'iger ,oods to promote a $atorade brand called
$atorade 'iger
PepsiCo continues is promotional association &ith the N-0 and the Super !o&l
speci+cally %).84'=N$ Pepsi and #oritos
=n 200B Pepsi launched its JPepsi 'hro&backK campaigned 1--4.=N$ a drink
&ith the sugar content of its original product
People
=ndra 8 Nooyi is the President of PepsiCo in addition to the company3s C-1
.ecently the !oard of #irectors elected Steven S .einemund chairman of the
board and chief e2ecutive oLcer
PepsiCo fosters a corporate culture that values employees and emphasi?ed
diversity in the &orkplace
PepsiCo is named to the M!est Companies for %ulti Cultural ,omen3 list by
,orking %other maga?ine
PepsiCo is recogni?ed at t&o events for its dedication to 'alent Sustainability
and dedication to )sian )merican employeesN200B !est Companies for
)sian Paci+c )mericans from )sian 4ntrepreneur, 'op <0 Companies for )sian
)mericans from )%!)
PepsiCo has &on the M,orkplace 42cellence3 )&ard at 1ut O 4*ual ,orkplace
National Summit
PepsiCo is listed in the top 20 M=deal 4mployer %!) .anking3 in -ortune
maga?ine
Pysicial 4vidence
PepsiCo3s &ebsite provides a &ealth of information about the company
including the +rm3s rich history and manufacturing process
PepsiCo is an industry leader in packaging " helping to promote and
implement standards for sustainable packaging
PepsiCo has a packaging philosophyP reduce, reuse, recycle, remove and
rene&
Process
PepsiCo is in the process of removing high fructose corn syrup QD-CSR from
both the traditional
'he -rito60ay department &ill soon produce 0ay3s 8ettle &ith natural 5avors,
and to boost the &hole grain and +ber content, respectively, of its 'ostitos
and Sun Chips brands
-lavor concentrates are shipped from special Pepsi6Cola manufacturing
plants, 'he bottles and cans that &ill eventually be +lled &ith Pepsi are
manufactured else&here, and shipped to Pepsi plants &rapped and sealed for
protection, 0abels, cartons, caps, the carbon dio2ide used to carbonate soft
drinks and other supplies are also produced for Pepsi by other companies,
1nce on the belt, cans are part of an enclosed, controlled environment that
keeps them sanitary and helps ensure *uality throughout the +lling process,
Pepsi6Cola takes special care to purify the &ater it uses " a procedure that
involves careful treatment, +ltration and puri+cation, Pepsi6Cola 5avor
concentrate is carefully combined &ith s&eeteners and other ingredients in
large stainless steel mi2ing tanks (uality control audits performed by
specially trained technicians are a critical part of the manufacturing
se*uence, =n the last step of the manufacturing process, as the no&6rinsed
cans reach the +ller, they3re reinverted, immediately +lled and the lid is
applied " at an average speed of <,200 cans per minute
roductP
'he main product of Pepsi Cola Company is Pepsi and its sub brands are #e&,
%iranda, 7up, Pepsi %a2 =t also diversi+ed into 0ays
Providing their consumers &ith easy6to6use, convenient and innovative
containers are one of their top priorities Package introductions they have
made over the years include the industrySs +rst < T liter bottle7 .egular,
#isposable7 Can Pepsi Co &as the +rst company to respond to consumer
preference &ith light&eight, recyclable, plastic bottles 'hese bottles are
made of polyethylene terephthalate or UP4' plastic,U &hich is a form of
polyester used to make strong, light&eight, shatter6resistant bottles
Pepsi ProductsP

V Pepsi Qcola drinkR
V 7UP Qcola drinkR
V %iranda Qsoft drinksR
V #e& Qcola drinkR
V Slice Qsoft drinksR
V )*ua+na Q%ineral ,aterR
PriceP
Pepsi prices its products similar to those of Coca6Cola in order to keep pro+ts
high Competition in the is based mainly on marketing skill rather than price
to help avoid costly price &ars and keep pro+ts stable Since neither of the
ma>or manufacturers &ould &in a price &ar, it is un&ritten rule that the
companies &ill follo& the pricing structure of the market leader ,hile this
amount to price +2ing, there has not been any ma>or government actions to
curtail the practice so it should continue in the future
PepsiCo3s current retail prices range depending on the convenience of the
location in &hich they are located and depending on the si?e of the soft drink
container
P.=C4S 1- #=--4.4N' !1''04S
Si?e and Price of Pepsi Q.SR
.egular bottle <H
Non returnable or disposable bottle H0
< liter bottle QglassR H9
<9 liter bottle 70
229 liter bottle B0
Pepsi can W0
Place Q#istributionR

%anufacture 66666666666666 ,holesaler666666666666666.etailer
%anufacturer 66666666 Company ,arehouse66666666666666 .etailer
#istribution is an important aspect of success in the beverage industry Since
the cola companies &ant to focus on making syrup and marketing, they need
to have strong, loyal bottlers 'his is especially the case in foreign markets
&here the cola companies +ercely battle for good bottlers
'he building of bottlers through >oint ventures and the increased
maintenance of current bottler relationship should be the main focus of
Pepsi3s international marketing Coca6Cola is very methodical in making sure
that its bottlers are happy, &hile Pepsi has been kno&n for neglecting its
bottlers 'his is one area that Pepsi must improve if it is going to take market
share a&ay from Coca6Cola
Product is distributed through PepsiCo distribution centers 'he distributor
delivers it
'o the grocery retailers, vending companies, restaurants, and &arehouseXclub
stores
'he distribution segments can be broken do&n into the follo&ingP
Y Convenience Stores and $as StationsP <2: of the market
Y .estaurantsP 29: of the market
Y ,arehouseXClub StoresP C: of the market
Y Super %arkets and .etail StoresP 97: of the market
Promotion Strategy
Pepsi promotes its products in a many &ays, but focuses mainly on getting
products associated &ith entertainment icons that appeal to youth 'he +rst
ma>or use of this techni*ue &as the signing of Pakistan cricket team as
celebrities
'&o other areas of entertainment that have been used by Pepsi to promote its
brands are sports and movies Sports are a popular source of entertainment
throughout the &orld and is a using it to promote the brand is a main focus of
Pepsi Since sporting events are seen many times by fans, it provides a good
opportunity to increase brand recognition %ovie stars are also popular
throughout the &orld and are greatly admired by people, so using them in
advertising has a positive eGect brand image
Some of the &ays in &hich Pepsi attract consumers areP
Z -ree Samples Q Ne& product " #4,R
Z #iscounts Q .)%#)N 1GersR
Z =n6Store #isplays " Signs, banners etc
Z 4ntertainment " $ames &ith free '6shirts, Pepsi points under the cap etc

'he second largest soft drink player in the &orld, Pepsi has implemented
several smart strategies in the last decade to improve its turnover and
pro+ts Pepsico3s e2pansion in snacks like 0ays, (uaker oats, Cheetos and
8urkure have given them an edge over Coca cola )lthough Coca cola is still
the number one selling brand, Pepsi has reduced their dependency on Soft
drinks by e2panding their product mi2
,e are discussing the marketing mi2 of Pepsi ,e kno& that the marketing
mi2 is a dynamic process and is al&ays changing &ith respect to price and
promotions 'hus, kudos to Pepsi, &hich has al&ays kept changing their
marketing mi2 &ith the changing environment Dere is the Pepsi marketing
mi2 or the WP3s of Pepsi
Product in the marketing mi2 of Pepsi " 'here are 2 main product types in
&hich Pepsi is present in =ndia
!everages
Soft drinks " 7up, #uke3s, %irinda, %ountain de&, Nimboo?, Pepsi, Slice,
'ropicana,
%ineral X !ottled &ater " )*ua+na
Sports #rink " $atorade
-ood Products
Snacks " Cheetos, 8urkure, 0ays, 0ehar, Uncle chipps
!reakfast " (uaker oats
'hus, Pepsi, unlike its ma>or competitor Coca cola, has e2panded in the
breakfast as &ell as snacks segment Coca cola on the other hand is present
only in the beverages section 'he advantage of Pepsi3s snacks segment is
that brands like 0ays, 8urkure and Cheetos are in great demand (uaker oats
&hich is a recent addition is also increasing in demand 'hus the turnover
resulting from the -ood products is helping the bottom line of the company
Price in the marketing mi2 of Pepsi " Pepsi is in an industry &hich is
dominated by the t&o biggies " Coca cola and Pepsi 'hus the pricing of Pepsi
is competitive =n a &ar bet&een Coca cola and pepsi, neither of the brands
can &in if they enter a price &ar 'his is because the cost of manufacturing
and transportation is huge 'hus, these companies are likely to enter a brand
&ar rather than enter a price &ar
Pepsi is kno&n to give promotional discounts as &ell as discounts on bulk
buying -or customers, as the container si?e rises, the discounts also rise
'hus a 2 litre bottle of Pepsi &ill be relatively cheaper per <00ml as compared
to a 290 ml pack -or distributors, the discount is based on the *uantity as
&ell as the payment terms 'he better the payment terms or the higher the
*uantity, the more is the discount given thereby keeping the distributor
motivated
Do&ever, Pepsi has to lo&er its price for the top retailers and bulk buyers -or
e2ample " =ndian retailers like !ig !a?aar, .eliance fresh, as &ell as hypercity
are bulk buyers Similarly fast food chains like %cdonalds, 8-C are also bulk
buyers 'hese bulk buyers negotiate &ith the soft drink brands on the basis of
price and sell their products in huge *uantities 'hus, pepsi has to drop prices
in these places &hich aGects the operating margin of the brand 'he margins
of the company are better through the distributors and lesser through bulk
buyers Do&ever, the sales of the company are higher to bulk buyers as
compared to distributors
Place in the marketing mi2 of Pepsi " Pepsi has a huge distribution net&ork in
=ndia =t has to be huge because the brand needs to be present in every nook
and corner of the country to increase its sales 'he primary mode of
distribution is through distributors &ho in turn give it to retailers, restaurants,
and convenience stores 'he secondary mode of distribution is directly
through the company to bulk buyers and ma>or retailers &ho buy directly
from the company
'hus distribution channel is as follo&s
<R Company [ #istributor [ Small retailers X Small buyers [ 4nd customer
2R Company [ !ulk buyers [ 4nd customer
)s cost is saved in the 2nd e2ample, companies are able to give better
margins to !ulk buyers 'he ma>or challenge in distribution is the cost of
bottling as &ell as the cost of transportation
!ottling of Pepsi is done at bottling plants =n =ndia, Pepsi has HC bottling
plants out of &hich <H are franchisees &hereas 2H are company o&ned 'he
soft drink once packed is moved to the company &arehouse from &here it
goes to distributors and bulk buyers
Several of pepsi3s soft drink distributors themselves might act as distributors
of 8urkure, 0ays and other snacks products as the distribution is through the
same channel 'he products are also sold from the same convenience store
'hus, it makes sense if the distributor of the soft drink is given the authority
to distribute snacks as &ell Do&ever, in some cases, the distributor of soft
drink might be separate from that of Snacks
Promotions in the marketing mi2 of Pepsi
1ne of the strongest reason Pepsi retains its brand image is its promotions
Pepsi targets mainly youngsters through various !rand ambassadors =n =ndia,
the brand ambassadors have been the best celebrities as &ell as sports
person of the country including Sachin tendulkar, % S #honi, )mitabh
!acchan, .anbir kapoor and others
%ountain de& has a message of J#arr ke age >eet haiK &hich is again focused
on adventure sports thereby targeting youngsters Snacks like 8urkure and
0ays target diGerent segments 8urkure is kno&n to target household snacks
and middle aged group &hereas 0ays targets youngsters and the party mood
$atorade targets only sports as it is a sports drink )nd (uaker oats, &hich is
a recent launch as compared to the other products, targets breakfast &ith a
bit of masala
Pepsi uses all the media channels for its promotions )long &ith )'0, pepsi is
also present in !'0 marketing -urthermore, along &ith traditional media
channels, Pepsi also uses trade promotions and sales promotions at point of
purchase #iscounts and packaging are al&ays being bundled to give the best
combination and value to the customer to increase purchases as &ell as the
brand e*uity
'he bottomline is that Pepsi cannot e2ist &ithout the proper promotions 'his
is because Pepsi belongs in the -%C$ market, and in -%C$, you either
perform or perish 'he -%C$ market is one of the toughest market for
businesses Do&ever, Pepsi is not only surviving, but it is thriving in the -%C$
market 'hus, hoping that Pepsi keeps re inventing its marketing mi2 so that
it remains in the top 2 category of soft drinks
#4C0).)'=1N
= hereby declare that the &ork entitled JComparison of marketing mi2 for
coca cola O Pepsi coK in CD=%CK submitted to66666666 is a record of an original
&ork done by us under the guidance of Prof of marketing
management P$#% batch 'erm in college and this pro>ect &ork
is submitted in the partial ful+llment of the re*uirement for a&ard of post
graduate diploma in management and communication 'he results embodied
in this pro>ect have not been submitted to any other institute for the a&ard of
any diploma
#ate 6
2<X0WX20<<
)ckno&ledgement
= o&e a great many thanks to a great many people &ho helped and supported
me during the &riting of this book
%y deepest thanks to 0ecturer 'he $uide of the pro>ect, for
guiding and correcting various documents of us &ith attention and care De
has taken pain to go through the pro>ect and make necessary correction as
and &hen needed
= &ould also thank my =nstitution and my faculty members &ithout &hom this
pro>ect &ould have been a distant reality

=ntroduction
=ntroduction of Pepsi Co
Pepsi &as founded in Ne& Iork in <BC9 =t is Producing Non6alcoholic
beverage and -ood processing items Pepsi is a carbonated beverage that is
produced and manufactured by PepsiCo =t is sold in retail stores, restaurants
cinemas and from vending machines 'he drink &as +rst made in the <EB0s
by pharmacist Caleb !radham in Ne& !ern, North Carolina 'he brand &as
trademarked on @une <C, <B0H Pepsi arrived on the market in =ndia in
<BEEPepsiCo gained entry to =ndia in <BEE by creating a >oint venture &ith
the Pun>ab government6o&ned Pun>ab )gro =ndustrial Corporation QP)=CR and
Aolta3s =ndia 0imited 'his >oint venture marketed and sold 0ehar Pepsi until
<BB<, &hen the use of foreign brands &as allo&ed7 PepsiCo bought out its
partners and ended the >oint venture in <BBW 1thers claim that +rstly Pepsi
&as banned from import in =ndia, in <B70, for having refused to release the
list of its ingredients and in <BBH, the ban &as lifted, &ith Pepsi arriving on
the market shortly after&ards 'hese controversies are a reminder of U=ndia3s
sometimes acrimonious relationship &ith huge multinational companiesU
=ndeed, some argue that PepsiCo and 'he Coca6Cola Company have Ubeen
ma>or targets in part because they are &ell6kno&n foreign companies that
dra& plenty of attentionU
=ntroduction of coco6cola
Coca6Cola is a carbonated soft drink sold in stores, restaurants and vending
machines &orld&ide 'he Coca6Cola Company in )tlanta, $eorgia produces
it =t &as incorporated in <EEC 'he Coca6Cola Company claims that it is sold
in over 200 countries
'he US soft6drink giant, Coca6Cola, reentered =ndia in the <BB0s after
abandoning its businesses in the late <B70s in the &ake of -oreign 42change
.egulation )ct of <B7H 'he )ct, meant to S=ndianiteS foreign companies,
made it mandatory for foreign companies to dilute their shareholdings to W0
per cent =nstead of diluting its shareholdings to the re*uired limit prescribed
by the )ct, Coca6Cola opted to discontinue its operations in =ndia
Coca6Cola is a leading player in the =ndian beverage market &ith an
appro2imate C0 per cent share in the carbonated soft drinks segment
'he US soft6drink giant, Coca6Cola, reentered =ndia in the <BB0s after
abandoning its businesses in the late <B70s in the &ake of -oreign 42change
.egulation )ct of <B7H 'he )ct, meant to S=ndiani?eS foreign companies,
made it mandatory for foreign companies to dilute their shareholdings to W0
per cent =nstead of diluting its shareholdings to the re*uired limit prescribed
by the )ct, Coca6Cola opted to discontinue its operations in =ndia
%ission O Aision
%ission of Coke
Z 'o refresh the &orld in mind, body O sprit
Z 'o create a value in brands O diGerence every&here &e engage
Z 'o do everything diGers
Z 1ur product in each hand
Z !eing a global leader in beverage
%ission of Pepsi
PepsiCo mission is to be the &orldSs premier consumer Products Company
focused on convenient foods and beverages ,e seek to produce +nancial
re&ards to investors as &e provide opportunities for gro&th and enrichment
to our employees, our business partners and the communities in &hich &e
operate )nd in everything &e do, &e strive for honesty, fairness and
integrity
Aision of coke
Z Pro+tP %a2imi?e the return of shareholder
Z PeopleP 4stablish a great place to &ork &here people are inspired to the
!est they can do
Z Portfolio P !ringing to the &orld a portfolio of beverage brands that
Z )nticipate and safely people3s desire O need
Z PartnersP nurturing a &inning net&ork of partners O building a mutual
0oyalty
Aision of Pepsi co
Pepsi co vision is put into action through programs and a focus on
environmental ste&ardship, activities to bene+t society, and a commitment
to build shareholder value by making PepsiCo a truly sustainable company
%arketing %i2

%arketing %i2
%arketing mi2 is the set of marketing tools that the +rm uses to pursue its
marketing ob>ectives %arketing mi2 has a classi+cation for these marketing
tools these marketing are classi+ed and called as the four p3s ie product,
price, place and promotion
'he most basic marketing tool is product &hich includes product design,
*uality, features, branding, and packaging a critical marketing tool is price
ie the amount of money that customers pay for the product it also includes
discounts, allo&ances, credit terms and payment period
Place is another key marketing mi2 tool and it includes various activities the
company undertakes to make the product accessible and available to the
customer Some factors that decide the place are transport facilities,
channels of distribution, coverage area, etc
Promotion is the fourth marketing mi2 tool &hich includes all the activities
that the company undertakes to communicate and promote its product to
target market Promotion includes sales promotion, advertising, sales force,
public relations, direct marketing, etc
Product
Product

=n marketing, a product is anything that can be oGered to a market that might
satisfy a &ant or need =t is of t&o typesP 'angible QphysicalR and =ntangible
Qnon6physicalR Since services have been at the forefront of all modern
marketing strategies, some intangibility has become essential part of
marketing oGers =t is therefore the complete bundle of bene+ts or
satisfactions that buyers perceive they &ill obtain if they purchase the
product =t is the sum of all physical, psychological, symbolic, and service
attributes, not >ust the physical merchandise )ll products oGered in a market
can be placed bet&een 'angible QPure ProductR and =ntangible QPure ServiceR
spectrum
) product is similar to goods =n accounting, goods are physical ob>ects that
are available in the marketplace 'his diGerentiates them from a service,
&hich is a non6material product 'he term goods is used primarily by those
that &ish to abstract from the details of a given product )s such it is useful in
accounting and economic models 'he term product is used primarily by
those that &ish to e2amine the details and richness of a speci+c market
oGering )s such it is useful to marketers, managers, and *uality control
specialists
) service is a non6material or intangible product 6 such as professional
consultancy, serving, or an entertainment e2perience
Coca6Cola Product
'he Coca6Cola formula is 'he Coca6Cola CompanySs secret recipe for Coca6
Cola )s a publicity marketing strategy started by .obert , ,oodruG, the
company presents the formula as one of the most closely held trade secrets
ever and only a fe& employees kno& or have access to 'his Coca6Cola
formula appears to be the original formula to Coca6Cola =t is from the book
J-or $od, Country and Coca6ColaK
'he company Coca6cola is a multinational and it is not limited to one product
'hrough the years they have invented and introduced many products than
their main cola drinks 'he list of Coca6cola brands are as follo&sP
)ppletiser
)*uarius
!P% 4nergy
!ar*Ss
!eat soda
!everly
Cannings
Cheers
Ciel
Coca6Cola !lack
Cherry Aanilla
Coca6Cola !lak
Coca6Cola C2
Coca6Cola Cherry
Coca6Cola Citra
Coca6Cola %9
Coca6Cola \ero
Coca6Cola
Coca6Cola &ith
0emon
Coca6Cola &ith 0ime
#asani
#ela&are Punch
#iet Coke
-anta
-anta Citrus
-ioravanti
-resca
-risco
-ruitopia
-rutonic
-ull 'hrottle
$eorgia
Di6C
Dit
8ia61ra
8inley
0emon O Paeroa
0ift
0ift plus
0ilt
%an?ana 0ift
%are .osso
%ello Iello
%e??o %i2
%inute %aid
Nestea
Ne& Coke
Nordic %ist
18 Soda
Pibb ]tra
Po&erade
(oo
.aspberry Coke
.elentless
Sarsi
Sen?ao
Simply 1range
Smart
Sparkle
Sprite
Sprite =ce
Sprite .emi2
Sprite \ero
Surge
S&erve
'ab
'ab Clear
'ab 4nergy
'ab ]6'ra
'iky
Aault
Pepsi6Product
'he Pepsi6Cola drink contains basic ingredients found in most other similar
drinks including carbonated &ater, high fructose corn syrup, sugar, colorings,
phosphoric acid, caGeine, citric acid and natural 5avors 'he caGeine free
Pepsi6Cola contains the same ingredients but no caGeine
Some of the diGerent and varied brands of Pepsi are as follo&sP
)ll Sport
)*ua+na
CaGeine6-ree Pepsi
Crystal Pepsi
#iet Pepsi
$atorade
=??e
@a??
@osta
8as
%an?anita Sol
%irinda
%ountain #e&
%ountain #e& )%P
%ountain #e& 0ive,ire
%ountain #e& %#]
%ug .oot !eer
Pepsi
Pepsi !lue
Pepsi Cappuccino
Pepsi %a2
Pepsi 1N4
Pepsi Samba
Pepsi 'arik
Pepsi '&ist
Propel -itness ,ater
Sierra %ist
Slice
So!e
Storm
'eem
'ropicana Products
'ropicana '&ister
Comparison Coke and Pepsi6Product
Coke O Pepsi6Product
)s seen above both the companies Coke and Pepsi have a number of
products %any of these products are innovations but there are also many
products &hich are brought out >ust as a competitive product for the other
companies Some of these products that are brought in the market by both
the companies to compete against each other are as follo&sP
Coke
Pepsi
'he main dark cola drink of the company &hich started the rivalry bet&een
these companies
Pepsi version of dark cola &hich is the ma>or primary competitor to Coke
-ull 'hrottle is an energy drink brand produced by 'he Coca6Cola Company =t
debuted in late 200W in North )merica
)%P is an energy drink produced and distributed by PepsiCo under the
%ountain #e& soft drink brand
Aault is a carbonated beverage that &as released by 'he Coca6Cola Company
in @une 2009
%ountain #e& %#] is an energy drink manufactured and distributed by
PepsiCo under the %ountain #e& brand =t &as introduced in 2009
Po&erade is a sports drink by 'he Coca6Cola Company and currently number
t&o in the sports drink market &orld&ide
$atorade is a non6carbonated sports drink marketed by (uaker 1ats
Company, a division of PepsiCo 1riginally made for athletes, it is no& often
consumed as a snack beverage
Sprite is a clear, lemon6lime 5avored, non6caGeinated soft drink, produced by
the Coca6Cola Company =t &as introduced to the United States in <BC<
7 Up is a brand of a lemon6lime 5avored soft drink
%inute %aid is a product line of beverages, usually associated &ith orange
>uice, but no& e2tends to soft drinks of many kinds 'he %inute %aid
company is no& o&ned by Coca6Cola, and is the &orldSs largest marketer of
fruit >uices and drinks =t is head*uartered in Douston, 'e2as
'ropicana Products is an )merican company based in !radenton, -lorida,
US), &hich is one of the &orldSs largest producers and marketers of orange
>uice =t has been o&ned by PepsiCo, =nc since <BBE
Nestea is a brand of iced tea manufactured and distributed by the Nestle
companySs beverage department in the United States, and by Coca6Cola in
several 4uropean countries, !ra?il and Aene?uela
0ipton 1riginal =ced 'ea is a ready6to6drink iced tea brand sold by 0ipton
through a &orld&ide partnership &ith Pepsi
!ar*Ss is a brand of root beer notable for being the only ma>or North
)merican root beer to contain caGeine =t has been bottled since the start of
the 20th century and is currently sold by the Coca6Cola Company
%ug .oot !eer is a brand name of root beer made by the Pepsi company
#iet Coke or #iet Coca6Cola is a sugar6free soft drink produced and
distributed by 'he Coca6Cola Company =t &as introduced in the United States
in @uly <BE2
#iet Pepsi is a lo&6calorie carbonated cola =t &as introduced in <BCW as a
variant of Pepsi6Cola &ith no sugar
8inley is a brand of still or carbonated &ater o&ned by 'he Coca6Cola
Company
)*ua+na is a non6carbonated bottled &ater produced by PepsiCo
)*uarius is a mineral sports drink manufactured by 'he Coca6Cola Company
=t &as +rst introduced in <BEH
)ll Sport &as a sports drink =t is produced by PepsiCo
-anta is a soft drink brand o&ned by 'he Coca6Cola Company =t is produced
and distributed by 'he Coca6Cola CompanySs bottlers
%irinda is a brand of soft drink %irinda is o&ned by PepsiCo
Sprite =ce &as the +rst 5avor e2tension for 'he Coca6Cola CompanySs Sprite
brand soft drink
Pepsi !lue is a soft drink made by PepsiCo and launched in mid62002
Coca6Cola !lak is a coGee65avoured soft drink introduced by Coca6Cola in
200C
Pepsi Cappuccino is a cappuccino65avored carbonated soft drink produced by
Pepsico
%aa?a is a Coca6Cola fruit drink brand marketed in =ndia and !angladesh
Slice is a line of fruit65avored soft drinks manufactured by PepsiCo and
introduced in <BEW
0imca is a lemon and lime 5avoured carbonated soft drink made in =ndia by
Coca6cola
'eem &as a lemon6lime65avored soft drink produced by 'he Pepsi6Cola
Company
Price
Price

=n economics and business, the price is the assigned numerical monetary
value of a good, service or asset
Price is also central to marketing &here it is one of the four variables in the
marketing mi2 that business people use to develop a marketing plan
Pricing is a big part of the marketing mi2 Choosing the right price and the
right pricing strategy is crucial to the marketing process
'he price of the product is not something that is +2ed 1n the other hand the
price of the product depends on many other factors Some times the price of
the product has got nothing to do &ith the actual product itself 'he price
may act as a &ay to attract target customers
'he price of the product is decided keeping many things in mind 'hese
things include factors like cost incurred on the product, target market,
competitors, consumer buying capacity etc
Coke " Price
Coke &as a company ruling the markets before Pepsi entered 4arlier the
price of coke &as cost based ie it &as decided on the cost &hich &as spent
on making the product plus the pro+t and other e2penses
!ut after the emergence of other companies especially the likes of Pepsi,
Coca6cola started &ith a pricing strategy based on the basis of competition
No&adays more e2penses are spent on advertising my soft6drink companies
rather than on manufacturing
Coke has brought in a revolution especially in =ndian markets &ith the .s 9
pricing strategy &hich &as very famous =t &as the +rst company to introduce
the small bottle of Coke for >ust .e9 'his campaign &as very successful
especially &ith the price conscious =ndian consumers
4ven today most prices of Coke are decided on the basis of the competition in
the market
Pepsi " Price
Pepsi again decides it price on the basis of competition 'he best think about
the company Pepsi is that it is very 5e2ible and it can come do&n &ith the
price very *uickly 'he company is reno&ned to bring the price do&n even up
to half if needed
!ut this risk taking attitude has also earned Pepsi losses 'hough lo&ering the
price &ould attract the customers but it &ould not help them cover up the
cost incurred in production hence causing them losses
'his &as the situation earlier but no& Pepsi is a full65edged and gro&ing
company =t has covered all its losses and is no& gro&ing at a rapid rate

Place
Pepsi and coke place
Place is one of the four elements of marketing mi2 -re*uently there may be
a chain of intermediaries7 each passing the product do&n the chain to the
ne2t organi?ation, before it +nally reaches the consumer or end6user 'his
process is kno&n as the Sdistribution chainS or the Schannel3 So &e say that a
set of interdependent organi?ations involved in the process of making a
product available for the use or consumption is kno&n as #istribution
channel 4ach of the elements in these chains &ill have their o&n speci+c
needs, &hich the producer must take into account, along &ith those of the all6
important end6user
Place is refers to distribution &hich is given in after promotion
Promotion
Promotion
Promotion is one of the four aspects of marketing Promotion comprises four
subcategoriesP
6 )dvertising,
6Personal selling,
6Sales promotion,
6 Publicity and public relations
'he speci+cation of these four variables creates a promotional mi2 or
promotional plan ) promotional mi2 speci+es ho& much attention to pay to
each of the four subcategories, and ho& much money to budget for each )
promotional plan can have a &ide range of ob>ectives, includingP sales
increases, ne& product acceptance, creation of brand e*uity, positioning,
competitive retaliations, or creation of a corporate image
Promotion is the fourth marketing mi2 tool &hich includes all the activities
that the company undertakes to communicate and promote its product to
target market Promotion includes sales promotion, advertising, sales force,
public relations, direct marketing, etc
Promotion of Pepsi O Coke
!oth the companies Pepsi and coke are famous for their promotions 'he
rivalry &as +rst started &hen Pepsi started &ith its blind taste tests kno&n as
the Pepsi Challenge 'he challenge is designed to be a direct response to
critics &ho allege that Coca6Cola and Pepsi6Cola are identical drinks, &ith no
meaningful diGerences 'he challenge takes the form of a taste test )t malls,
shopping centers and other public locations, a Pepsi representative sets up a
table &ith t&o blank cups, one containing Pepsi and one &ith Coke Shoppers
are encouraged to taste both colas, and then select &hich drink they prefer
'hen the representative reveals the t&o bottles so the taster can see &hether
they preferred Coke or Pepsi =f Pepsi is revealed, the shopper is given a small
pri?e 'he implication is that Pepsi tastes better than Coke, and thus
consumers should purchase Pepsi
=n blind taste tests, more consumers prefer the taste of Pepsi to that of Coca6
Cola !ecause Coke &as the historical leader, more people e2pected that
theySd prefer and select Coke 'heir surprise at picking Pepsi in the blind taste
test Qproducts &ere served in unmarked cupsR helped change their minds
about &hich product they prefer Capturing this on +lm, Pepsi turned this into
a memorable 'A campaign that lasted many years
)lso ad6campaigns are put up on the television by both the players 'he
follo&ing statistic >ust tells of much of share of ads on 'A are captured by
these players
=n =ndia both Coca6cola and PepsiCo have sho&n the door to older celebrity
endorsers and are betting big on emerging stars
'hey both promote their products trough advertisement
Pepsi6)dvertisement
-irstly the Pepsi in )merica advertise its product for the society as &hole and
for the purpose of refreshment, &hich can be clearly visible from their
advertisement slogans like6
6 J )ny &hether is Pepsi &hetherK
6 J 'he light refreshment J
6 J !e sociable, have a Pepsi J
=n =ndia PepsiCo &as Selecting to celebrity for advertisement these celebrity
are6
Shahrukh 8han,
Sachin 'endulkar,
.ahul #ravid,
Sourav $anguly,
%ahender singh dhoni,
.anbir kapoor,
#eepika padukone,
=shant sharma,
.ohitsharma,
Shreeshant
Airender seh&ag to strengthen its KyoungistaanK brigade PepsiCo signed
)sin Qof $ha>ini fameR to take &ar to orange 5avor category
PepsiCo had tried to tied up &ith Chennai super kings for its 7up brand, &hich
is the most preferred drink therePepsiCo has also signed on 'elegu movie
actor .am Charante>a as part of its youngistaan campaign to endorse Pepsi in
)ndhra Pradesh
Coke )dvertisement
'here are diGerent advertisement, &hich depicts that3scoca cola, is the need
for party or coca cola brings more >oy and taste to the party Cocacola has
roped in $autam$ambir as brand ambassador for the company ne& Jcoca
cola open happinessK campaign ahead of =P0 seasons
Coke also advertises in diGerent electronic media and print media for
advertisement they use =nternet, 'A sho& %aga?ine, Ne&s paper and many
more
Coke3s advertisement &as very famous in &hich famous actor )mir khan
Sho& that J'handa matlab coco colaK
#istribution
#istribution Strategy
Coca cola and PepsiCo are &orld&ide famous for their #istribution channel =n
=ndia the distribution net&ork of Coca cola had C9lakh outlets across the
country in 2000 and on the other hand Pepsi CoSs distribution net&ork had C
lakh outlets across the country in the same year Coca cola and PepsiCo had
formulated diGerent distribution strategy for urban sector and rural sector
-or the urban distribution channel these companies adopted the model like
direct store distribution, broker &arehouse distribution and Aending O -ood
Service QAO-SR systems &here as these companies are follo&ing the Dub and
Spoke model for rural distribution channel, in &hich they divided the diGerent
categories of distributors according to the area they are covering
.ural #istribution Channel6
Since last +ve years soft drink companies had started penetrating rural
marketing also -or the rural sector these companies are &orking on Dub and
Spoke model 'o reach out to rural =ndia, Coke started out by dra&ing up a hit
list of high potential villages from various districts So to ensure full loads,
large distributors QDubsR &ere appointed, and they &ere supplied from the
companySs depot in large to&ns and cities
#istribution Channels in Urban )rea
!oth the soft drink company3s coke and Pepsi adopted a model #S# that is
#irect Store developed various distribution models to oGer its products and
services to customers in the #istribution Q!,#R and Aending O -ood service
QAO-SR systems #istribution =n this company directly supplies its product to
the retailers &hich helps them
of the product to the retailer !ased on its e2perience, PepsiCo and Coca cola
had to save the margin, &hich they give to the &holesalers and it also
ensures *uick availability US !esides #irect Store #elivery Q#S# they
adopted other system like !roker ,arehouse
Q#=.4C' S'1.4 #=S'.=!U'=1NR
=nnovation in #istribution System
'hrough their use of the most modern technology in recent years, PepsiCo
and its bottlers &ere able to improve their distribution and logistics
management operations signi+cantly 'o further improve the market
penetration of its products globally, PepsiCo launched t&o ne& distribution
methods in the initial years of the ne& millennium 'hese &ere the chilled
#S# system and the hybrid system
Chilled #S# System6
'he chilled #S# system &as a relatively small distribution method, created
for items, &hich re*uired continuous refrigeration 'his &as primarily created
for the fruit >uices product line as they can spoil *uickly if not given the
re*uired condition and care so chilled #S# system ensures that continuous
refrigeration helps in preventing the products from spoiling
'he Dybrid System
=n this system the company makes the collaboration &ith other company of
complementary good so that their distribution channel is also used for the
sales of its product )s taking the practical e2ample of the collaboration of
Coca cola and %c#onald 'hrough this collaboration the distribution channel
of the Coca cola increases, as at ever %c#onald the Coca cola &ill be there
So increase the distribution channel through collaboration &ith other
company is kno&n as hybrid system 'his system is actually bene+ted by the
synergy created by collaboration of t&o companies
=N'4.N)'=1N)0 #=S'.=!U'=1N SIS'4% %)N)$4%4N'
=n order to manage its distribution systems eGectively, PepsiCo and Coca cola
had put in place6advanced logistics systems 'hey sold beverage concentrate
to bottlers, &ho added carbon dio2ide, s&eetener and &ater to make
beverages and beverage syrup Syrup &as either sold directly to the fountain
accounts or &as combined &ith carbonated &ater for bottling !ottling
companies &ere Q&ith a fe& e2ceptionsR o&ned and operated by local
companies in the countries &here PepsiCo and Coca cola operated
S,1' )N)0IS=S
S,1' )N)0IS=S 1- P4PS= )N# C184
Strength6
Pepsi and Coke has been a comple2 part of &orld culture for a very long time
'he
Products image is loaded &ith over6romantici?ing and fun, this is an image
many people have taken deeply to heart Pepsi and Coke are the e2tremely
recogni?able brand, &hich is the greatest strength of them )dditionally there
!ottling system is one of their greatest strengths 'his allo&s them to the
conduct business on a global scale &hile at the same time maintain a local
approach 'he bottling companies are locally o&ned and operated by
independent business people &ho are authori?ed to sell product of these cola
giant
PepsiCo and Coca cola are having the largest distribution net&ork in the
&orld, &hich is also there one of the greatest strength
,eakness6
,eaknesses for any business need to be both minimi?ed and monitored in
order to
4Gectively achieve productivity and eLciency in their business activities
)lthough the international sales are increases but there is getting saturation
evident through the stability in cola drink in US) market and moreover all
over the &orld the customer preference for cola drink is shifting to&ards the
healthy drink is taking place !eing addictive of cola drink is also a health
problem, because drinking of carbonated soft drink daily has an eGect on
your body also
1pportunity6
!rand recognition is the signi+cant factor aGecting Pepsi and Coke
competitive position Pepsi and Coke brand is kno&n &ell throughout BW: of
&orld today )s in developing countries the per head consumption of cola
drink is very less &hich evident from taking e2ample of =ndia
=n =ndia per head consumption is only C bottles as compare to 700 bottles in
US) and in =ndian market only 9: of the beverages come under packaging
So looking at these data &e can that for these t&o giant a lot of potential is
there in developing market &hich is no& also untapped
'hreats 6
Currently, the threat of ne& viable competitors in the carbonated soft drink
industry is not very substantial 'he threat of Substitute, ho&ever, is a very
real threat 'he soft drink industry is very strong, but consumers are not
necessarily married to it Possible substitutes that continuously put pressure
on both Pepsi and Coke include tea, coGee, >uice, milk and hot chocolate
4ven through the Coca cola and Pepsi control nearly W0: of the entire
beverage market, the changing health consciousness of the market could
have a serious aGect 1f course, both have already diversi+ed into these
markets, but still these Substitute &ill remain threat to them Consumer
buying po&er is also represents a key threat to the Pepsi and Coke
Conclusion
Conclusion
)fter the completion of pro>ect &e have seen the diGerent aspects of this
Pro>ect )lso &e have gained some ne& kno&ledge about both of company
'he outcome that came out from the information &ork is that in 'rinity coke is
the market leader &ith 9W: market share Pepsi is having only WC: market
share ,e come to kno& that Pepsi is the leading brand of Pepsi co &ith 2B:
market share of its total market share and 'humbs up is the leading brand of
coke &ith 2E: market share of itself
'hrough this pro>ect &e also come to kno& that young generation is the
potential market for beverage industry, taste is the <st preference to
choosing the product and one more important factor that belo& <2 years and
above to 90years people like the soft drinks &hile people bet&een <26 H0
year prefer cola drinks and rest people &ho comes in bet&een H0 690 year
have common
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Iou are hereP U8 4ssays _ 4ssays _ %arketing _ Coca Cola Comparison 'o
Pepsi Cola !rand %).84'=N$ 4ssay
Print 4mail #o&nload .eference 'his Send to 8indle .eddit 'his
Coca cola comparison to Pepsi cola brand
%).84'=N$ is the process of meeting customers needs pro+tably =t is the
bridge bet&een producers and customers =t involves 5o& of goods and
services from producers to consumers )merican %).84'=N$association
Q<BE9R de+nes, J%).84'=N$ is the process of planning and e2ecuting the
conception, price, promotion and distribution of ideas goods and services to
create e2change than satisfy individuals and organi?ational goalsK
4very business organi?ation depends upon customers 'hus, marketing is key
at attract and retain customers %arketing begins &ith identifying needs and
&ants of customers and ends &ith satisfying the customers &ants eLciently
than competitors 'herefore, marketing has a great importance in survival
smooth operation of an organi?ation bet&een no businesses can 5ourishes
&ithout marketing =t plays a vital role to promote the sales and revenue of
the organi?ation
Nepal has a system of >oint family structure and the family and friends greatly
in5uence marketing activities Cultural diversities of diGerent races and their
ethics, norms and traditions have great eGect on Nepalese marketing
Do&ever, due to development of education, communication and
transportation there have been a great change even in cultural sectors too
=n conte2t of cold drinks, Nepalese people have been using cold drinks Qeg
coke, PepsiR is increasing in Nepal as in other countries =t3s one reason is that
the density of population has been creating hot and the other is that diGerent
types of advertisements have been published by the companies of each
related cold drinks day by day &hich can easily attract the consumer 'here
are so many companies coming into Nepalese %).84' like !ottlers Nepal
'erai 0td, Qeg coke, -anta, spriteR, !arun !everage 0td Qeg Pepsi, %iranda,
%t #e&, 7 upR, frooti, >uice and other companies 4specially present
researcher is going to be done the research of current market situation of
coca cola and Pepsi cola brand in the conte2t of Pokhara municipality 'his
study is carried on the +nd out consumer3s purchase behaviors &ith reference
to cold drinks on the basis of brand preference in the title of J%arket Situation
of coca cola and Pepsi cola brand in Pokhara %unicipalityK
<2 -ocus of the Study
=n this study researcher &ill focus on the current market situation of coca cola
and Pepsi cola brand in Pokhara $enerally cold drinks stands for alcohol less
drinks 'his study &ill e2amine the market situation of coca cola and Pepsi
cola brand in Pokhara and &ill try to +nd out the marketing variables aGecting
the cold drinks 'he research also &ill focuses on the role played by attitude,
image and usage pattern of the cold drinks
<H .esearch (uestions
a ,hat are the sales position of coca cola and Pepsi cola brand in
Pokhara F
b ,hat are the consumersS vie& about the coca cola and Pepsi cola
brand in6terms of packaging price, accessibility, bene+ts and *uality etcF
c ,hat are the consumersS vie&s of advertising of coca cola and Pepsi
cola &ith other brandsF
<W 1b>ectives of the study
'he ob>ectives of this research pro>ect &ill be as follo&s
a 'o e2amine the sales position of coca cola comparison to Pepsi cola
brand
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b 'o analy?e consumersS vie& about the coke and Pepsi brands compare
in6terms of price, packaging, accessibility, bene+ts and *uality etc
c 'o compare consumersS vie& about advertising eGectiveness of coca
cola and Pepsi cola brands
<9 Signi+cance of the Study
'his study is to attract ne& consumers3 vie& on coke and Pepsi for marketing
strategies, management, policies and decision making proceeding Social
relation &ith marketing of coke and Pepsi is also the signi+cant cause of this
study because these days every marketing entrepreneur has to tie the bond
&ith social aspect )t present drinking habits of soft drinks are rising up to
day by day specially in the hot area like 'erai region of Nepal So = &ish to
analyses t&o product coke and Pepsi in Pokhara %unicipality &hich has
signi+cant population to have a study
<C 0imitations of the Study
%ost of data use in this study &ill be obtained through *uestionnaire,
intervie&, so most of the data &ill be primary #ata &ill be based on sample
survey of 20<< .esearcher &ill do this study only in Pokhara %unicipality and
&ill cover small segment of Nepalese market 'he responses of the
respondents &ill be analy?ed &ith percentile method and also graph chat of
necessary places 'he variables are also limitation of this study
2 .4A=4, 1- 0='4.)'U.4
'he researcher studies diGerent educational materials ie, >ournals,
maga?ines, periodicals, ne&spapers, books, &ebsites etc, after selecting the
topic of the research is kno&n as revie& of literature
2< %arketing Concepts
U%arketing has been developing together &ith development in human
civili?ation =f &e trace three6four hundred years back to the history of human
civili?ation, &e +nd marketing of that time, by modern standard &as relatively
uncultured 'hey did not need mechanism or tools or techni*ues of marketing
as used today !ut no& all the situations have changed the need and &ant
have changed Duman aspiration for e2cellent and better status have given
birth to thousand of discoveries, inventions and innovations and established
thousands of units of diGerent types of industry to ful+ll that aspiration 'hese
changes in turn not only in rented diGerent sophisticated tools and
techni*ues and eGective strategies for successful marketing but also made
the marketing a most competitive +eldU QPara>uli, 200<R
22 4volution of %arketing
'he evolution of marketing has been analy?ed in similar &ay by various
authors in their independent &orks Some of the authors &ere Stanton,
8otler, )rmstrong etc, and the diGerent stages in the process of evolution of
marketing area as follo&s
a Production 1riented Stage
'he production concept lies in the philosophy that consumers &ill favor
products that are available and highly aGordable and that management
should therefore focus on improving production and distribution eLciency
Q8otler, <BB7R
8otler and )rmstrong think that it is still a useful philosophy in t&o types of
situationsP
` ,hen the demand of a product e2ceeds the supply, management
should take for &ays to increase production
` ,hen cost of production is high and is re*uired to decrease to e2pand
market Q8otler and )rmstrong, <BB7R
b 'he Product 1riented Stage
'he idea that the consumer &ill favor products that oGer the most *uality,
performance and features and that the organi?ation should therefore, devote
its energy to making continuous product improvements Q8otler, <BB7R
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c 'he Sales 1riented Stage
'his stage emerged &ith the philosophy that consumers &ould not buy
enough of the organi?ationsS products unless the organi?ation undertakes a
large 6 scale selling and promotion eGort Q8otler, <BB7R
d %arketing 1riented Stage
'he basic target of this stage is that the achievements of organi?ations goals
depend on determining the needs and &ants of target markets and delivering
the desired satisfactions more eGectively and eLciently than do competitors
Q8otler, <BB7R
2H #evelopment of %arketing
%arketing has developed in an evolutionary rather than revolution fashion =ts
development has been in5uenced by the progress of civili?ation and
economic development of nations
-igure <
Stages of %arketing #evelopment
Primary Stage
Pre6industrial stage
=ndustrial
stage
'echno6=nformation
stage
$lobal Stage
SourceP )gra&al, 200<
2W !asic Principle of %arketing Concept
a 'arget markets should be de+ned carefully No organi?ation can
operate in every market and satisfy every need
b Customer orientation is the key to organi?ation success 1rgani?ational
activities should be focused on determining and satisfying customer needs
c =ntegrate marketing action is the essence of customer need
satisfaction )ll departments in the organi?ation should &ork together to
serve the customers interest
d 'he ultimate purpose of marketing concept is to help organi?ations
achieve their ob>ectives 1rgani?ations can best achieve ob>ectives by
providing customer need satisfaction Q)gra&al, 200<R
29 %arketing System
) marketing system is a uni+ed &hole composed of interrelated and
interacting subsystem QpartsR to achieve desired ob>ectives %arketing is a
dynamic system consisting of input 6 processing6output 6 feedback sho&ing in
+gure
-igure 2
%arketing System
1utput
Processing
=nput
-eedback
SourceP )gra&al, <BBB
2C %arketing %i2
%arketing is the process of choosing markets to be in, products to oGer,
prices to change, distributors to use, and message to send 1rgani?ation
must create and maintain an eGective marketing mi2 that satis+ed customer
needs U%arketing mi2 is the set of marketing tools that organi?ations use to
purpose their marketing ob>ective in the target marketU
-igure H
'he tools of %arketing %i2 are 8no&n as W Ps
$oals
Product
Promotion
Price
Place
SourceP )gra&al, <BBB
i 'he four elements of marketing mi2 are interrelated #ecision is one
element usually aGect actions in others
ii 'he design, implementation and evaluation of the marketing mi2
constitute important aspects of the total marketing eGort 1rgani?ations
should oGer diGerent marketing mi2 for diGerent segments of the target
market
27 #istribution
U#istribution is concerned &ith all business activities revolving around the
problem of getting the product from the place of manufacturing to the +nal
consumer #istribution deals &ith t&o aspects of product movementP
marketing channels and distribution logistics %arketing channels or channels
of distribution is the system of relationship among the various persons and
institutions involved in the process of movement and o&nership of products
and facilitating e2changes #istribution logistic concerned &ith the physical
movement of productsU Q8oirala, <BB7R
a Channels of #istribution
%eaning of %arketing Channels
)ccording to ,illiam @ Stanton, Ua distribution channel consists of the set of
people and +rms involved in the transfer of title to a product as the product
moves from producer to ultimate consumer or business userU 'he channel of
distribution involves several individuals and institutions such as producer,
suppliers, industrial users, brokers, agents, &holesalers, retailers and
consumers =t also includes several 5o&s in the system =t consists of for&ard
5o&s and back&ard 5o&s 'he for&ard 5o&s more from producers to the
market 'here are three for&ard 5o&sP product 5o&, communication 5o& and
o&nership 5o& 'he back&ard 5o&s move from the market to the producers
'he back&ard 5o&s areP money from sales, orders for products, and market
information QStanton, <BBWR
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-igure W
Channel Structure for Consumer and =ndustrial products
Physical products
Communication
1&nership title
%oney from sales
1rder for products
%arket information
Producer
%arket
SourceP 8oirala, <BB7
'he channel structure is a combination of channel components and channel
levels 'he channel components are the type of channel participates involved
in the channel system 'he channel levels are the number of channel
components in the channel system 'he channel structure of consumer
products and industrial products are diGerent Similarly, the type of channel
components also diGers bet&een the t&o type of products Q8oirala, <BB7R
b Channel #esigns for Consumer Products
'here are four design alternatives for the distribution of consumer goods,
ranging from a ?ero level to level three Under ?ero level design, the producer
may distribute the merchandise directly to consumers by passing all
%).84'=N$ intermediaries Under level one channel design, the producer
may use retailers to reach consumers =n level t&o designs, the product may
reach consumers through &holesalers and retailers =n level three designs,
the producer may use the agents to connect and e2ecute
-igure 9
Producers
,holesaler
.etailer
.etailer
.etailer
,holesaler
)gent
Consumers
0evel 6 H
0evel 6 2
0evel 6 0
0evel 6 <
Channel #esign for Consumer Products
SourceP 8oirala, <BB7
'he sales transaction to diGerent categories of buyers, the four designs have
been presented in the diagram above Q8oirala, <BB7R
c Physical #istribution
=n the %).84'=N$ channels the products must be moved in the right *uantity
at the right time to the right place in order to deliver desired satisfactions to
the end users or consumers Physical distribution or marketing logistic is
concerned &ith them management of 5o& of goods from the point of origin to
the point of consumption %arketing organi?ations must manage the 5o& of
goods and services from their production locations to the %).84', and also
make arrangement for a 5o& of information bet&een the t&o points
2E ) .evie& of Previous .esearch ,ork
0amichhane, Q<BBER concluded that advertising is considered as the primary
source of information 'he advertisement of Coke, Pepsi and branded cold
drinks are found in 8athmandu Coca6cola brand is more popular than other
brand Consumer gives more preference to the brand but less preference to
*uality and test 'elevision is the mostly favorite media for advertisement
'he ma>or reasons of brand s&itching are the taste of the product %ost of
consumers are found brand loyal =f they donSt get the desired brand, they
use the alternative brand So the %).84'4.S are suggested to give proper
attention on their distribution system
'hapaliya, Q<BBBR concluded that the use of instant noodles has become a
general consumption phenomenon in 8athmandu 'here are various brands
of instant noodles available in the market and market of noodles has turned
to be competitive in recent years 'he company does not have eGective and
reliable channel to collect information from &holesalers, distributors and
consumers
!handari Q2007R, conducted a researched on U=mpact of Sales Promotion 'ools
on Sales of Cold #rinksP ) Case Study of Cold #rinks in 8askiU 'his study
sho&s that coca6cola brand is much dominant over other cold drinks brands
in 8aski districts =t found that sales promotion activities has positive impact
upon sales and cash pri?e is the most eGective and &idely used mode of
concluded that increasing sales of one brand does not aGect negatively to the
sales of other brands
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H .4S4).CD %4'D1#101$I
) research methodology is the plan of action that is carried out in systematic
manner .esearch methodology refers to the various se*uential steps to be
adopted by researcher in studying &ith certain ob>ectiveXob>ectives in vie&
'herefore, this chapter deals &ith the follo&ing aspects of methodology
` .esearch design
` Population and sampling
` Source of #ata
` #ata Collection Procedures
` #ata processing and 'abulation
` )nalytical tool
` Dypothesis
H< .esearch #esign
$eneral ob>ectives of the research study are to e2amine and evaluate the
%arket situation of cold drinks ie Coca Cola brand and Pepsi Cola brand,
mainly of Pokhara %unicipality =n order to achieve the ob>ective, both
descriptive and analytical research design has been follo&ed
H2 Population and Sample
'he population of this study consists of all the buyers and consumers above
<9 years age group of cold drinks and also consists of audiences e2posed to
diGerent audio and video advertisement of concerned or mentioned products
Numbers of consumers selected from diGerent age groups are as follo&sP
Number of Samples
)ge $roups
W9
<962W
BH
296HW
H9
H96WW
20
W969W
7
)bove 99
'he sample consists of the respondents from the diGerent sectors such as
students, private service holder, government service holder, teacher and
businessman -or the study purpose 200 consumers have been surveyed in
Pokhara %unicipality
HH Source of #ata
HH< Primary Sources
Primary data has been collected through *uestionnaire for diGerent levels of
consumers ie high school level consumers, higher secondary level
consumers, graduate education holder, masters level consumers and Ph #
holder consumers like&ise, some necessary information &as been taken from
distributors and retailers
HH2 Secondary Sources
)s a regards supporting literature, relevant books, >ournals, bulletins,
maga?ines, ne&spapers etc, have been studies
HW #ata Collection Procedures
'he problem of the study lies on the issues to the situation of market Dence,
various data are re*uired ,ith the vie& of obtaining data, a *uestionnaire
&as designed &hich contained t&enty6nine *uestions 'he diGerent levels or
types of consumersXbuyers have +lled up the *uestionnaires -or the
collection, in the +rst the researcher visited the market and the
*uestionnaires &ere distributed to the consumers =n the second round, the
*uestionnaires &ere got +lled
H9 #ata Processing and 'abulation
#ata obtained from the various sources cannot be directly used in their
original form -urther, they need to be veri+ed for the purpose of analysis
#ata, information, +gures and facts so obtained are checked, rechecked,
edited and tabulated for computation
)ccording to the nature of data, they &ere inserted in meaningful tables,
&hich have been sho&n Considering homogeneous nature of data put sorted
in one table and odd data &ere e2cluded Aarious table have been prepared
in understandable manner
HC )nalytical 'ool
=n course of analy?ing and interpreting the data, various statistical tools have
been used in the research in order to dra& out the reliable conclusion 'hey
areP
` Percentage analysis
` .ank correlation analysis
` Chi6s*uare test analysis
HC< Percentage )nalysis
Sampling statistics are used to test &hether the observed diGerence bet&een
t&o numbers is large enough to be considered statistically signi+cant
probably the most common situation to &hich sampling statistics tests are
applied are those &here researcher have selected samples from t&o spare
groups and have observed t&o diGerence percentage on a *uestion that &as
asked of both group
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HC2 .ank Correlation )nalysis
.ank correlation coeLcient is a measure of association bet&een the t&o
variables on the basis of their ranks =t is also called spearmanSs rank
correlation coeLcient and is de+ned Q$upta, 2002R
,here,
rs a .ank correlation coeLcient bet&een t&o variables
# a #iGerent bet&een the ranks of the corresponding values of both
variables
N a Number of pairs of ranks
HCH Chi6S*uare 'est )nalysis
=t is measure of s*uared deviations bet&een observed and theoretical
numbers in terms of fre*uencies in categories or cells of table, determining
&hether such deviations are due to sampling error or some interdependence
or correlation among the fre*uencies =t involves a comparison of fre*uencies
involving fre*uencies of yes6no *uestions QPanta, 2000R )nd it is de+ned by
Q$upta, 2002R
,here, f0 and fe are the observed and corresponding e2pected fre*uencies
respectively
,hen Chi6s*uare e*ual to ?ero, observed and e2pected fre*uencies agree
e2actly =t is clear that the greater the value of Chi6s*uare, the greater the
discrepancy bet&een observed and e2pected fre*uencies
H7 Dypotheses
=n the light of the ob>ectives of the study, follo&ing null and alternative
hypotheses &ill be developed for this research
D0 P 'here is no signi+cant diGerence bet&een the vie&s e2pressed by coca
cola and Pepsi cola consumers
D< P 'here is signi+cant diGerence bet&een the vie&s e2pressed by coca cola
and Pepsi cola consumers
D0 P 'he rating scale of advertising of coca cola and Pepsi cola by consumers
are independent
D< P 'he rating scale of advertising of coca cola and Pepsi cola by consumers
are dependent
D0 P 'here is no correlation in the ranked data
D< P 'here is correlation in the ranked data
C .esearch 'imescale
)ctivities
b
%onths c
%ay
@une
@uly
)ugust
&eeksc
<
2
H
W
9
C
7
E
B
<0
<<
<2
<H
<W
<9
< 0iterature read
2 -inalise ob>ectives
H #raft revie& literature
W Study methodology of literature
9 #raft research strategy and method
C -ield survey &ith semi structure intervie&
7 #evelop research *uestionnaire
E Conduct intervie&
B 4nter data in to computer
<0 )nalysis
<< .evise draft, format for submission
<2 Submission
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