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INTRODUCTION
Pepsi was founded in New York in 1965. It is Producing Non-alcoholic beverage and Food processing items.
Pepsi is a carbonated beverage that is produced and manufactured by PepsiCo. It is sold in retail stores,
restaurants cinemas and from vending machines. The drink was first made in the 1890s by pharmacist Caleb
Bradham in New Bern, North Carolina. The brand was trademarked on June 16, 1903. Pepsi arrived on the
market in India in 1988.PepsiCo gained entry to India in 1988 by creating a joint venture with the Punjab
government-owned Punjab Agro Industrial Corporation (PAIC) and Voltas India Limited. This joint venture
marketed and sold Lehar Pepsi until 1991, when the use of foreign brands was allowed; PepsiCo bought out
its partners and ended the joint venture in 1994. Others claim that firstly Pepsi was banned from import in
India, in 1970, for having refused to release the list of its ingredients and in 1993, the ban was lifted, with
Pepsi arriving on the market shortly afterwards. These controversies are a reminder of "Indias sometimes
acrimonious relationship with huge multinational companies." Indeed, some argue that PepsiCo and The
Coca-Cola Company have "been major targets in part because they are well-known foreign companies that
draw plenty of attention."
Ingredients
Pepsi-Cola contains basic ingredients found in most other similar drinks including carbonated water, high
fructose corn syrup, sugar, colorings, phosphoric acid, caffeine, citric acid, and natural flavors. The caffeinefree Pepsi-Cola contains the same ingredients minus the caffeine.
Brand History
Pepsi is a hundred-year-old brand loved by over 200 million people worldwide. Pepsi is ubiquitous on just
about every social occasion.
Youngistaan loves it. 200 million people worldwide love it. But what has made Pepsi the
single largest selling soft drink brand in India is actually a formula concocted a century ago in a
faraway continent.
1886, the US. Caleb Bradman, a man with a plan formulated a blockbuster of a digestive drink
and decided to call it Brads drink. The potion was to become Pepsi Cola in 1898, and eventually,
Pepsi in 1903.
Since its inception, Pepsi has always been at the forefront of the beverage industry and has
come up with revolutionary concepts such as Diet Pepsi, 2l bottles, recyclable plastic cola bottles and
the enviable My Can.
Brand Advantage
Pepsi has become a friend to youth and youth culture. Over generations, youngsters have
grown up with Pepsi and have shared an emotional connect with it unlike with any other cola brand.
Be it parties, hangouts with friends, or just another day at home, a day is never complete without the
fizz of Pepsi!
Pepsi has always fuelled youth passions like cricket, Bollywood, music and now football.
Youth icons like MS Dhoni, Ranbir Kapoor, Didier Drogba, Virendar Sehwag, Sachin Tendulkar,
Priyanka Chopra and Deepika Padukone have endorsed Pepsi since its launch in India.
Pepsi Changed the Game during the 2011 cricket world cup by challenging convention,
celebrating the unorthodox and by becoming the official sponsor of everything that was unofficial
about the sport! Change the Game even as a thought has gained enormous popularity and generated
tremendous buzz.
Taking the same theme forward in 2012, Pepsi changed the game yet again by taking the lead
in celebrating the exciting new platform of football. Having brought the biggest international football
stars and pitching them against the mighty Indian cricketers in a classic faceoff for Pepsi is
something which only a brand like Pepsi can deliver.
Quick Brand Facts
Flagship brand of PepsiCo.
100 year old brand loved by over 200 million people worldwide.
An iconic youth brand in India.
HYPOTHESIS
A research hypothesis is the statement created by researchers when they speculate upon the outcome of a
research or experiment. It simply means a mere assumption or some supposition to
be proved or disapproved. For a researcher, hypothesis is a formal question that he intends to resolve. Thus, a
hypothesis may be defined as a proposition or a set of propositions set forth as an explanation for the
occurrence of some specified group of phenomena either asserted merely as a provisional conjecture to guide
some investigation or accepted as highly probable in the light of established facts.
The null hypothesis (H0) for this particular study is that the health issues of soft drink like Pepsi do not
impact the consumer satisfaction. The alternative hypothesis (H1) is that that the health issues of soft drink
like Pepsi do impact the consumer satisfaction.
In the present scenario the competitions between the soft drinks increased very high. The companies are
struggling a lot to keep up their market share in the industry and to improve the sales of their products i.e. the
turnover of the company. For this the company has to know their position in the market and the opinion and
the loyalty of the customers and the retailers when compared to their competitor. Because of this reason the
comparative analysis is very important and useful to the Company.
By the use of comparative analysis the companies can understand the position of the company and the
strength of the company in the market. Through the comparative analysis we can understand that what
strategies the competitors are using for the increase their sales volume. From the study we can gather the
information regarding the opinion of the retailers on the company's comparatively and this will help to plans
for the future to increase the performance of the company and to gain the loyalty of the retailers when
compared to the competitors.
RESEARCH METHODOLOGY
Research refers to the systematic method consisting of enunciating the problem, formulating the
hypothesis, collecting the facts or data, analyzing the facts and obtaining certain conclusions
either in the form of solutions towards the concerned problem or in certain generalization for some
theoretical formulation.
Research Design
Research design is the arrangement of condition for collection and analysis of data in a manner that aims at
combining relevance to research purpose with economy in procedure. It constitutes the blue print for the
collection, measurement and analysis of data. It seeks to answer the following question:
What is the study about?
Why is the study being made?
What type of data is required?
LIMITATION OF STUDY
It is very small research, which may be insufficient to give the real picture scope of the brand
preference in Mumbai (Byculla) and its catchment area.
The research is based on collected data and the researcher is not responsible for any wrong
inference drawn due to the incorrect filling of the questionnaire by the respondents.
The method of result is also limited to the reliability of method of investigations, measurement
and analysis of data.
People were not interested in filling questionnaire properly
REVIEW OF LITERATURE
Blattberg, Peacock, and Sen (1976, 1978)
Describe 16 purchasing strategy segments based on three purchase dimensions: brand loyalty (single brand,
single brand shifting, many brands), type of brand preferred (national, both national and private label), and
price sensitivity (purchase at regular price, purchase at deal price)
Kretter, Kadekova et al (2010)
Country of the origin of food and consumer preference in segment of university students consumers prefer
the attributes like freshness, flavour and also the price. Consumer prefers fruit juices because of their flavour
and freshness.
Analysis of Brand Preference of Soft Drinks in Global Market provides details regarding consumers
preference on soft drinks.
Report on Indian Beverage Industry (2012)
Discloses the following things regarding beverage market.A Beverage is a drink specifically prepared for
human consumption. Beverages almost always largely consist of water. Drinks often consumed include:
Water (both flat or carbonated),Juice based drinks, Soft drinks, Sports and Energy drinks, Alcoholic
beverages like Coffee, tea ,Dairy products like milk. Commonly, drinks are filled into containers, like glass
or plastic bottles, steel or aluminum cans as well as cardboard supported packages, like the "Tetra Pak" or
others. India has a population of more than 1.150 Billion which is just behind China. According to the
estimates, by 2030 India population will be around 1.450 Billion and will surpass China to become the World
largest in terms of population. Beverage Industry which is directly related to the population is expected to
maintain a robust growth rate.
COMPANY PROFILE
PepsiCo, Inc. is one of the world's top consumer product companies with many of the world's most important
and valuable trademarks. It's Pepsi-Cola Company division is the second largest soft drink business in the
world, with a 21 percent share of the carbonated soft drink market worldwide. Pepsi was founded in New
York in 1965. Its Headquarter is in Purchase, New York. It is Producing Non-alcoholic beverage and Food
processing items. Pepsi is a carbonated beverage that is produced and manufactured by PepsiCo. It is sold in
retail stores, restaurants cinemas and from vendingmachines.It was first introduced as "Brad's Drink" in New
Bern, North Carolina in 1898 by CalebBradham, who made it at his pharmacy where the drink was sold. It
was later named Pepsi Cola,possibly.
PepsiCo gained entry to India in 1988 by creating a joint venture with the Punjab government-owned Punjab
Agro Industrial Corporation (PAIC) and Voltas India Limited. This joint venture marketed and sold Lehar
Pepsi until 1991, when the use of foreign brands was allowed; PepsiCo bought out its partners and ended the
joint venture in 1994 and in a short period of 20 years has grown into the largest and one of the fastest
growing food & beverage business in the country. The company has an extremely positive outlook for
India."Outside North America two of our largest and fastest growing businesses are in India and China,
which include more than a third of the worlds population." (PepsiCos annual report,1999)
This reflects that India holds a central position in Pepsis corporate strategy. India is a key
market for PepsiCo, and at the same time the company has added value to Indian agriculture and industry.
PepsiCo is concentrating in three focus areas Soft drink concentrate, Snack foods and Vegetable and Food
processing.
Competitive Landscape
Demand for non-alcoholic beverages is driven by consumer tastes and demographics. The profitability of
individual companies depends on effective marketing. Large manufacturers have economies of scale in
production and distribution, with average annual revenue per production worker close to $1 million. Small
companies can compete by producing new products, catering to local tastes, or selling at lower prices.
Products, Operations & Technology:-
Nonalcoholic beverages include sodas (carbonated soft drinks, or CSD), bottled waters, juices, and a large
variety of mixtures. Sodas account for about 60 percent of the market. The manufacture and distribution of
most national soda brands, including Coke and Pepsi, is a two-tiered process. The primary manufacturer
produces a flavored syrup called concentrate that is sold to local bottlers who manufacture and distribute the
finished product. In a typical bottling operation, the flavored syrup, corn syrup (sugar), and filtered water are
mixed in appropriate proportions, carbon dioxide gas is injected, and the finished soda product is poured into
bottles or cans, which are capped, labeled, and packaged.
The two-tiered structure is most efficient for national companies with large volume, because the
manufacturing process is simple and because water, the main ingredient of sodas, is expensive to ship and is
available locally. Smaller companies combine the syrup production and bottling operations in one plant. For
soft drink bottlers, the major raw materials, aside from the flavored syrup, are corn syrup and containers -glass bottles, aluminum cans, or plastic bottles made from polyethylene terephthalate (PET).
Bottlers frequently operate sizable distribution systems, including warehouses and fleets of specialized
delivery trucks. Production and distribution volume is usually measured in cases of 192 ounces, although
actual cases of 12-ounce cans now contain 288 ounces. Coca-Cola produces more than 4 billion cases of soft
drinks per year; PepsiCo, over 3 billion. In addition to producing canned and bottled soft drinks, large
manufacturers sell sweetened syrups to restaurants and other retailers that produce the finished product at the
point of sale by mixing the syrup with carbonated water to produce fountain products. About 35 percent of
Coca-Cola's US product is in the form of fountain sales and 60 percent in bottled sales.
Sales & Marketing:Beverage manufacturers, bottlers, and wholesalers sell products through a variety of channels, such as food
and convenience stores, restaurants, vending machines, mass merchandisers, and institutions, including
schools and colleges. Soda bottlers typically own local vending machines.
The marketing approach to each of these channels is quite different and often includes promotional spending.
Large manufacturers may also sell directly to national accounts and usually advertise on national or regional
TV and in print.
Manufacturers typically produce a line of brands and often test and introduce new products into the market
through their existing distribution channels.
Assess trends in new product development in the children's market over the course of the past
2 years
Combine business to business executive opinion and local field research
PEPSICO THE PARENT COMPANY
PepsiCo, Inc. is one of the world's largest food and beverage companies. The company's principal businesses
include:
Frito-Lay snacks
Pepsi-Cola beverages
Gatorade sports drinks
Tropicana juices
Quaker Foods
PepsiCo, Inc. was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay. Tropicana was acquired
in 1998. In 2001, PepsiCo merged with the Quaker Oats Company, creating the worlds fifth-largest food and
beverage company, with 15 brands each generating more than $1 billion in annual retail sales. PepsiCos
success is the result of superior products, high standards of performance, distinctive competitive strategies
and the high level of integrity of our people.
Pepsi-Cola North America, headquartered in Purchase, N.Y., is the refreshment beverage unit of PepsiCo
Beverages and Foods North America, a division of PepsiCo, Inc. PepsiCo Beverages and Foods North
America also comprises PepsiCo's Tropicana, Gatorade and Quaker Foods businesses in the United States
and Canada.
Pepsi-Cola North America's carbonated soft drinks, including: Pepsi, Diet Pepsi, Pepsi Twist, Mountain Dew,
Mountain Dew Code Red, Sierra Mist, and Mug Root Beer account for nearly one-third of total soft drink
sales in the United States.
Pepsi-Cola North America's non-carbonated beverage portfolio includes Aquafina, which is the number one
brand of bottled water in the United States, Dole single-serve juices and So Be, which offers a wide range of
drinks with herbal ingredients. The company also makes and markets North America's best-selling, ready-todrink iced teas and coffees via joint ventures with Lipton and Starbucks, respectively.
PepsiCo Mission
"To be the world's premier consumer products company focused on convenience foods and beverages. We
seek to produce healthy financial rewards to investors as we provide opportunities for growth and enrichment
to our employees, our business partners and the communities in which we operate. And in everything we do,
we strive for honesty, fairness and integrity."
PepsiCo in India
PepsiCo entered India in 1989 and has grown to become one of the countrys leading food and beverage
companies. One of the largest multinational investors in the country, PepsiCo has established a business
which aims to serve the long term dynamic needs of consumers in India.
PepsiCo India and its partners have invested more than U.S.$700 million since the company was established
in the country. PepsiCo provides direct employment to 4,000 people and indirect employment to 60,000
people including suppliers and distributors.
PepsiCo nourishes consumers with a range of products from treats to healthy eats that deliver joy as well as
nutrition and always, good taste. PepsiCo Indias expansive portfolio includes iconic refreshment beverages
Pepsi, 7 UP, Mirinda and Mountain Dew, in addition to low calorie options such as Diet Pepsi, hydrating and
nutritional beverages such as Aquafina drinking water, isotonic sports drinks - Gatorade, Tropicana100%
fruit juices, and juice based drinks Tropicana Nectars, Tropicana Twister and Slice. Local brands Lehar
Evervess Soda, Dukes Lemonade and Mangola add to the diverse range of brands. PepsiCos foods company,
Frito-Lay, is the leader in the branded salty snack market and all Frito Lay products are free of trans-fat and
MSG. It manufactures Lays Potato Chips, Cheetos extruded snacks, Uncle Chipps and traditional snacks
under the Kurkure and Lehar brands. The companys high fibre breakfast cereal, Quaker Oats, and low fat
and roasted snack options enhance the healthful choices available to consumers. Frito Lays core products,
Lays, Kurkure, Uncle Chipps and Cheetos are cooked in Rice Bran Oil to significantly reduce saturated fats
and all of its products contain voluntary nutritional labeling on their packets.
The group has built an expansive beverage and foods business. To support its operations, PepsiCo has 43
bottling plants in India, of which 15 are company owned and 28 are franchisee owned. In addition to this,
PepsiCos Frito Lay foods division has 3 state-of-the-art plants. PepsiCos business is based on its
sustainability vision of making tomorrow better than today. PepsiCos commitment to living by this vision
every day is visible in its contribution to the country, consumers and farmers.