PROJECT BASED STUDY PROGRAM-I OF BATCH 2011

SUBMITTED BY Name 6NI14079

AT
ADAM SMITH INSTITUTE OF MANAGEMENT ICFAI UNIVERSITY SR.NAGAR, HYDERABAD

INTERIM REPORT ON MARKETING MIX OF PEPSI VS COKE

Submitted in partial fulfillment for the award of the degree of MASTER OF BUSINESS ADMINISTRATION

Submitted by M. Gayatri varsha 6NI14079

UNDER THE GUIDANCE OF

MR. ZAKHIR HUSSAIN

ADAM SMITH INSTITUTE OF MANAGEMENT ICFAI UNIVERSITY S.R. NAGAR, HDERABAD

Introduction
Modern age is full of competition. Today only way of success is your continuous efforts towards the growing market needs and in satisfying them. It is the marketer job to know what the market speaks i.e. the ever changing needs of the customer through market research & adopt them fruitfully. It is must for all the companies to make policies according to the customers and the govt. Today to succeed for any organization has to target its customer needs, to create a culture in the organization i.e. market conscious & responsive to customer needs. Soft drinks industry has become big business in India in recent years. The soft drink business underwent major change with the entry of PEPSI and re-entry of COCA-COLA in India in the late 80s when Parley with brands like Thumsup, Limca & Gold spot was a clear leader. Coca-Cola took up the product line of parley in 1993-94; today both brands are the Indians favorite soft drinks

Company profile of Pepsi co.

PepsiCo is a world leader in convenient foods and beverages, with revenues of about $27 billion and over 143,000 employees. The company consists of the snack business of Frito-Lay North America and the beverage and food businesses of PepsiCo Beverages and Foods, which includes PepsiCo Beverages North America (Pepsi-Cola North America and Gatorade/Tropicana North America) and Quaker Foods North America. PepsiCo International includes the snack businesses of Frito-Lay International and beverage businesses of PepsiCo Beverages International. PepsiCo brands are available in nearly 200 countries and territories.

Many of PepsiCo's brand names are over 100-years-old, but the corporation is relatively young. PepsiCo was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay. Tropicana was acquired in 1998 and PepsiCo merged with The Quaker Oats Company, including Gatorade, in 2001.

Pepsi co is the world leader in the food chain business. It consists of many companies amongst which the prominent one is Pepsi cola, frito lay, Pepsi food international, pizza hut, and KFC and taco bell. The group is presently into three most profitable businesses namely, beverages, snack foods and restaurants. It has scores of big brand available in

nearly

150

countries

across

the

world.

Company profile of coke

Coca-Cola, the corporation nourishing the global community with the worlds largest selling soft drink concentrates since 1886, returned to India in 1993 after a 16 year hiatus, giving a new thumbs up to the Indian soft drink market. In the same year, the Company took over ownership of the nations top soft-drink brand and bottling network. Its no wonder our brands have assumed an iconic status in the minds of the worlds consumers. Ever since, Coca-Cola India has made significant investments to build and continually consolidate its business in the country, including new production facilities, waste water treatment plants, distribution systems, and marketing channels.

Coca-Cola India is among the countrys top international investors, having invested more than US$ 1 billion in India in the first decade, and further pledged another US$100 million in 2003 for its operations. The Company has shaken up the Indian carbonated drinks market greatly, giving consumers the pleasure of world-class drinks to fill up their hydration, refreshment, and nutrition needs. It has also been instrumental in giving an exponential growth to the countrys job listings. With virtually all the goods and services required to produce and market Coca-Cola being made in India, the business system of the Company directly employs approximately 6,000 people, and indirectly creates employment for more than 125,000 people in related industries through its vast procurement, supply, and distribution system.

Literature Review

Marketing-Mix According to Stanton marketing mix is a combination of four elements (4Ps)Product, Pricing structure, Physical distribution system, and Promotional activities used to satisfy the needs of an organizations target market (s)and, at the same time, achieve its marketing objectives. Every business enterprises has to determine its marketing-mix for the satisfaction of needs of the customers. Marketing-mix represents a blending of decisions in four areas-product, pricing, promotion and physical distribution. These elements are inter-related because decision in one area usually affects actions in the others. The basic purpose to determining the marketing-mix is to satisfy the needs and wants of the customers in the most effective manner. As the needs of customers and the environmental factors change, the marketing-mix is also changed. Thus, marketing-mix is a dynamic concept. It concentrates on how to satisfy the needs of the customers. Marketing-mix is a combination of several-mixes. Marketing-mix encompasses productmix (brand, quality, weight, etc.); Price-mix (unit price, discount, credit, etc.); promotionmix(advertising, salesmanship and sales promotion); and place-mix (distribution channels, transport, storage etc)

Nature of Marketing-Mix
Marketing-mix is the marketing manager's instrument for the attainment of marketing goals. It is composed of four ingredients: (i) product, (ii) pricing (iii) promotional activities, and (iv) physical distribution. These elements constitute the core of the marketing system of a firm. A marketing manager implements his marketing strategies and policies through these instruments.

Importance of Marketing-Mix
Marketing-mix represents a blending of four elements, namely, product, price, promotion and physical distribution. Determination of marketing-mix is an important decision which the marketing manager has to take. If proper marketing-mix is determined, the following benefits will accure to the organization: (i) Marketing-mix serves as the link between the business firm and its customers. It focuses attention on the satisfaction of customers. Thus, it helps in pursuing consumeroriented marketing. (ii) Since marketing-mix takes care of the needs of the customers, it helps in increasing sales and earning higher profits. (iii) Marketing-mix gives consideration to the various elements of the marketing system. There is a balanced relation between these elements. For instance, the price of a product

depends upon its features and branding, packaging, etc. The media of advertisement will depend upon the product and its features. The channels of distribution will also depend upon the nature, utility, etc. of the product. (iv) Marketing-mix facilitates meeting the requirement of different types of customers, product design, pricing, promotion and distribution will depend upon the needs and purchasing power of the customers. If the requirement of customers changes, marketingmix will also be changed to satisfy their requirements.

Components and interaction of marketing-mix MARKETING MIX PRODUCT Product Design Prod.Development Prod.Range Quality Relation Features Packaging Branding Service Warranty PRICE Competitive price Credit Discounts Allowance PLACE PROMOTION

Channel selection Sales Promotion Channel coverage Advertising Inventory.mgmt Publicity Storage/Warehousing Public Distribution logistics Direct Marketing Transport

1. Product. Product-mix involves planning, developing and producing the right types of products and services to be marketed by the firm. It deals with the product range, durability and other qualities and other features. In short, product planning and development involves decisions about: (i) quality of the product (ii) size of the product, (iii) design of the product (iv) volume of the production (v) packaging (vi) warranties and after-sales service, 2. Price: It is one of the most difficult tasks of the marketing manager to fix the right price. The marketing manager has to do a lot of exercise to determine the price. He should determine the price in such a way that the firm is able to sell its products successfully. Pricing also involves establishing policies regarding credit, discount, delivery and payment. Right price can be determined through pricing research and by adopting test marketing techniques.

3. Promotion. Promotion deals with informing and persuading the customers regarding the firm's product. It involves decisions about advertising, giving free articles on purchase of the particular commodities, conducting contests, role of personal selling are important tools to promote the sale of precuts of a firm. The use of promotional activities like contests, free distribution of samples etc., is also significant. Thus, a mix of advertising, personal selling and sales promotion are used for the promotion of a firm and its products. The promotional tools are briefly described below: (i) Advertising: Advertising is a tool which the marketing manager uses to communicate a message to consumers through newspapers, magazines, television, etc. (ii) Personal Selling: Personal selling is another means of communicating to consumers, and consists of direct person- top- person interaction between salesman and customers. (iii) Sales Promotion. Sales promotion includes all the methods of communicating with the consumers except advertising and personal selling. It includes free samples, premium on sale, contests, displays, shows and exhibitions, etc. 4. Place or physical Distribution. Place-mix includes activities that are necessary to transfer ownership of goods to customers and to make available goods at the right time and place at which the products should be displayed and made available to the customers. It is management's responsibility to select and manage trade channels through which the products will reach the customer at the right time and to develop a physical distribution system for handling and transporting the products through these channels. The important channels used for physical distribution of goods are wholesalers and retailers. In some cases the manufacturer even owns the retail outlets. For example, there are oil companies in India that own stations distributing their petroleum products. Many manufacturers like Eureka Forbes also sell directly to consumers by way of door-to-door sales persons. Whatever may be the channel selected, the marketing managers are also responsible for measuring channel performance and making changes when performance falls short of expected goals. In addition, he has to develop a system of handling and transporting the products through these channels. The important questions include: Will the product be transported to middlemen by rail or by truck? If by truck, should the company buy its own vehicles or engage a transporter to do the transporting? What is the best route over which the goods should be moved? These are some of the decisions which the marketing managers have to take in the field of physical distribution.

Progress Report
Date 5th March 22, 2010 8th March 22, 2010 26thMarch 22, 2010 29th to 31 March 22, 2010 Activity Submission of Interim thesis and Evaluation Interim presentation Submission of final thesis and Evaluation Final Presentation

References
www.coca-colaindia.com www.wikimapia.org/ en.wikipedia.org/wiki/PepsiCo pepsicozeitgeist.com/ www.valuebasedmanagement.net/methods_marketing_mix www.12manage.com