4Ps Analysis of Nestle Pvt.Ltd and Cadbury Dairy Milk pvt. Ltd

MASTER OF BUSINESS ADMINISTRATION to PUNJAB TECHNICAL UNIVERCITY

Submitted by-

Shailendra kumar sharma Regd.no. DBS/09-11/W-083/B And Sandeep kumar Regd.no. DBS/09-11/W-081/B

Submitted to-

Ms. PRITTY SINGH (Faculty of marketing management)

dbs delhibusinessschool creating corporate connoisseurs

The comparison of the 4 Ps of the pepsi and cocacola pvt. Ltd

Objective of the study

In this project, our main focus was to analyze Beverage taking into consideration the 4 P’s of the marketing mix. • To analyze various product attributes of Beverage its management in the current scenario.• To study the entire distribution mix of the product line.• To critically comment on the pricing strategy adopted by the company.• Lastly our study will also focus on the various promotional aspect of the brand in Beverage and also promotional mix of the product line.

INTRODUCTION

Coca-cola

HISTORY

Type: Public

Founded: 1892 by Asa Griggs Candler

Headquarters: Atlanta, Georgia, USA

Industry: Beverage

Products Beverages:

Web site: www.cocacola .com

Origin of the product:

Dr. John Stith Pemberton for the first time produced the syrup for Coca-Cola on May 8, 1886

• The history of the Beverages industry started when Atlanta, Georgia druggist John Stith

Pemberton invented coca wine called Pemberton’s French Wine Coca in 1884.

• He was inspired by the formidable success of French Angelo Mariani’s coca wine, Vin Mariani

to compete with the many patent medicines and cure

- all elixirs of that time. His company recommended it for the relief of hangovers headaches,

menstrual pains, and a host of other problems.

• One warm summer day Pemberton took some syrup down to will is venerable at Jacob’s Drug

Store in Atlanta.

• An ounce of the mixture was put into a glass, which was then filled with water and ice, creating the WORLD’S first Coca-Cola

Origin of the company:

• The following year, when Atlanta and Fulton County passed Prohibition legislation, Pemberton

began to develop a non-alcoholic version of the French Wine Coca.

• He named it Coca-Cola, because it included the stimulant coca leaves from South America and

was flavoured using kola nuts, a source of caffeine. Pemberton ran the first advertisement for the

beverage on May 29 that year in the Atlanta Journal.

• In 1887, while suffering from an ongoing addiction to morphine, Pemberton sold a stake in his

company to Asa Griggs Candler, who incorporated it as the Coca Cola Corporation in 1888. In

the same year, Pemberton sold the rights a second time to three more businessmen: J.C.

Mayfield, A.O. Murphy, and E.H. Bloodworth.

• Meanwhile, Pemberton’s alcoholic son Charley Pemberton began selling his own version of the

product. Three versions of Coca-Cola — sold by three separate businesses — were on the

market.

• When the United States entered World War II, The Coca-Cola Company began providing free

drinks for soldiers of the United States Army. The United States Army permitted Coca-Cola

employees to enter the front lines as “Technical Officers” where they operated Coke’s system of

providing refreshments for soldiers Coca-Cola set up bottling plants in several locations overseas

to assure the drink’s availability to soldiers, setting the stage for the company’s post-war

overseas expansion.

• The popularity of the drink exploded as American soldiers returned home from the war with a

taste for the drink.

• Before the United States entered World War II, the difficulty of shipping Coca-Cola

concentrate to Germany and its occupied states led to the creation of a new drink by a Coca-Cola

employee, Fanta.

• Fanta’s origins date back to World War II when Max Keith, who managed Coca-Cola’s

operations in Germany during the war, ran out of the ingredients

for Coke, which could be supplied only from the United States. Keith resorted to producing a

different soft drink, Fanta, which proved to be a hit, and when Coke took over again after the

war, it adopted the Fanta brand as well.

• The German Fanta K/are Zitrone (“Clear Lemon Fanta”) variety became Sprite, another of the

company’s bestsellers

In the 1930s, Robert W. Woodruff became president of the Coca-Cola Company, presiding over

the drink and its destiny till his death in 1985. Although he eventually stepped down from his

post due to stress, he retained control over the company despite holding positions with an

ostensibly low profile.

The headquarters of Coca-Cola, now listed by fortune as one of the 50 top corporations in the

United States, is still in Atlanta, Georgia. The actual sale and distribution of that magic elixir -

which, needless to say, on longer contains cocaine - is handled largely by a number of

independent bottlers. These bottlers buy syrup, mix it with carbonated water, and distribute it to

retailers in their area. The number of retailers who sell Coke to the public almost exceeds

counting.

PEPSI

Type: Public Founded: 1903 by DCC

BROADHAM

Headquarters: New York, USA

Industry: Food & Beverage

Products: Beverages,Snacks

Origin of the product:

• It starts with a small drug store in North Carolina. This little store belonged to young chemist

by the name of DCC BROADHAM. He invented a drink that the customers called BROAD’S

drink. In 1903, Bradham got its drink registered formally by the name of PEPSI COLA

.

Origin of the company:

He set his own company and kept its sales improving gradually. By 1909, more then 250 bottlers

in different American states had been allowed to sell under the PEPSI COLA license. PEPSI

COLA was first sold in the standard size of 6.5 ounces. In 1932 PEPSI COLA took courage

enough to introduce a bottle of 12 ounces. In 1950 the PEPSI COLA’S formula had been

changed by reducing its sweetness and calories and a new advertising campaign Refresh without

filling had been launched effectively. Under the supervision of the diligent sales staff and the

Marketing experts, PEPSI COLA began setting new records of eminence. At 30 plants per year,

new plants were established all across the globe. A new attractively designed bottle had been

introduced in 1957 in place for the 20 years old bottle, and the product line had been enhanced to

introduce the new flavors of TEAM & MIRINDA. PEPSI COLA today is available to more than

a billion people in 153 different countries which include the central independent states and

China.

MARKETING MIX

Definition

The 'marketing mix' is a set of controllable, tactical marketing tools that work together to achieve

company's objectives

Four Ps

Product

In marketing, a product is anything that can be offered to a market that might satisfy a want or

need. It is of two types: Tangible (physical) and Intangible (non-physical). Since services have

been at the forefront of all modern marketing strategies, some intangibility has become essential

part of marketing offers. It is therefore the complete bundle of benefits or satisfactions that

buyers perceive they will obtain if they purchase the product. It is the sum of all physical,

psychological, symbolic, and service attributes, not just the physical merchandise. All products

offered in a market can be placed between Tangible (Pure Product) and Intangible (Pure Service)

spectrum.

A product is similar to goods. In accounting, goods are physical objects that are available in the

marketplace. This differentiates them from a service, which is a non-material product. The term

goods is used primarily by those that wish to abstract from the details of a given product. As

such it is useful in accounting and economic models. The term product is used primarily by those

that wish to examine the details and richness of a specific market offering. As such it is useful to

marketers, managers, and quality control specialists.

A service is a non-material or intangible product - such as professional consultancy, serving, or

an entertainment experience.

Coke – Product

The Coca-Cola formula is The Coca-Cola Company's secret recipe for Coca-Cola. As a publicity

marketing strategy started by Robert W. Woodruff, the company presents the formula as one of

the most closely held trade secrets ever and only a few employees know or have access to. This

Coca-Cola formula appears to be the original formula to Coca-Cola. It is from the book

“For God, Country and Coca-Cola”.

The company Coca-cola is a multinational and it is not limited to one product. Through the years

they have invented and introduced many products than their main cola drinks. The list of Coca-

cola brands are as follows:

Appletiser

Aquarius

BPM Energy

Barq's

Beat soda

Beverly

Cannings

Cheers

Ciel

Coca-Cola Black

Cherry Vanilla

Coca-Cola Blak

Coca-Cola C2

Coca-Cola Cherry

Coca-Cola Citra

Coca-Cola M5

Coca-Cola Zero

Coca-Cola

Coca-Cola with

Lemon

Coca-Cola with Lime

Dasani

Delaware Punch

Diet Coke

Fanta

Fanta Citrus

Fioravanti

Lemon & Paeroa

Lift

Lift plus

Lilt

Manzana Lift

Mare Rosso

Mello Yello

Mezzo Mix

Minute Maid

Nestea

New Coke

Nordic Mist

OK Soda

Pibb Xtra

Powerade

Qoo

Raspberry Coke

Relentless

Sarsi

Senzao

Simply Orange

Smart

Sparkle

Sprite

Sprite Ice

Sprite Remix

Sprite Zero

Fresca

Frisco

Fruitopia

Frutonic

Full Throttle

Georgia

Hi-C

Hit

Kia-Ora

Kinley

Surge

Swerve

Tab

Tab Clear

Tab Energy

Tab X-Tra

Tiky

Vault

Pepsi – Product

The Pepsi-Cola drink 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 caffeine free Pepsi-Cola contains the same ingredients but no

caffeine.

Some of the different and varied brands of Pepsi are as follows:

All Sport

Aquafina

Caffeine-Free Pepsi

Crystal Pepsi

Diet Pepsi

Gatorade

Izze

Jazz

Josta

Kas

Pepsi

Pepsi Blue

Pepsi Cappuccino

Pepsi Max

Pepsi ONE

Pepsi Samba

Pepsi Tarik

Pepsi Twist

Propel Fitness Water

Sierra Mist

Manzanita Sol

Mirinda

Mountain Dew

Mountain Dew AMP

Mountain Dew LiveWire

Mountain Dew MDX

Mug Root Beer

Slice

SoBe

Storm

Teem

Tropicana Products

Tropicana Twister

Coke v/s Pepsi-Product

As seen above both the companies Coke and Pepsi have a number of products. Many of these

products are innovations but there are also many products which are brought out just 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 follows:

Coke Pepsi

The main dark cola drink of the company

which started the rivalry between these

companies.

Pepsi version of dark cola which is the

major primary competitor to Coke.

Full Throttle is an energy drink brand

produced by The Coca-Cola Company. It

debuted in late 2004 in North America.

AMP is an energy drink produced and

distributed by PepsiCo under the Mountain

Dew soft drink brand.

Vault is a carbonated beverage that was

released by The Coca-Cola Company in

June 2005.

Mountain Dew MDX is an energy drink

manufactured and distributed by PepsiCo

under the Mountain Dew brand. It was

introduced in 2005.

Powerade is a sports drink by The Coca-

Cola Company and currently number two

in the sports drink market worldwide.

Gatorade is a non-carbonated sports drink

marketed by Quaker Oats Company, a

division of PepsiCo. Originally made for

athletes, it is now often consumed as a

snack beverage.

Sprite is a clear, lemon-lime flavored, non-

caffeinated soft drink, produced by the

7 Up is a brand of a lemon-lime flavored

soft drink.

Coca-Cola Company. It was introduced to

the United States in 1961.

Minute Maid is a product line of beverages,

usually associated with orange juice, but

now extends to soft drinks of many kinds.

The Minute Maid company is now owned

by Coca-Cola, and is the world's largest

marketer of fruit juices and drinks. It is

headquartered in Houston, Texas.

Tropicana Products is an American

company based in Bradenton, Florida,

USA, which is one of the world's largest

producers and marketers of orange juice. It

has been owned by PepsiCo, Inc. since

1998.

Nestea is a brand of iced tea manufactured

and distributed by the Nestle company's

beverage department in the United States,

and by Coca-Cola in several European

countries, Brazil and Venezuela.

Lipton Original Iced Tea is a ready-to-

drink iced tea brand sold by Lipton through

a worldwide partnership with Pepsi.

Barq's is a brand of root beer notable for

being the only major North American root

beer to contain caffeine. It has been bottled

since the start of the 20th century and is

currently sold by the Coca-Cola Company.

Mug Root Beer is a brand name of root

beer made by the Pepsi company.

Diet Coke or Diet Coca-Cola is a sugar-

free soft drink produced and distributed by

The Coca-Cola Company. It was

introduced in the United States in July

1982.

Diet Pepsi is a low-calorie carbonated cola.

It was introduced in 1964 as a variant of

Pepsi-Cola with no sugar.

Kinley is a brand of still or carbonated

water owned by The Coca-Cola Company.

Aquafina is a non-carbonated bottled water

produced by PepsiCo.

Aquarius is a mineral sports drink

manufactured by The Coca-Cola Company.

It was first introduced in 1983.

All Sport was a sports drink. It is produced

by PepsiCo.

Fanta is a soft drink brand owned by The

Coca-Cola Company. It is produced and

distributed by The Coca-Cola Company's

bottlers.

Mirinda is a brand of soft drink. Mirinda is

owned by PepsiCo.

Sprite Ice was the first flavor extension for

The Coca-Cola Company's Sprite brand

soft drink.

Pepsi Blue is a soft drink made by PepsiCo

and launched in mid-2002.

Coca-Cola Blak is a coffee-flavoured soft

drink introduced by Coca-Cola in 2006.

Pepsi Cappuccino is a cappuccino-flavored

carbonated soft drink produced by Pepsico.

Maaza is a Coca-Cola fruit drink brand

marketed in India and Bangladesh.

Slice is a line of fruit-flavored soft drinks

manufactured by PepsiCo and introduced

in 1984.

Limca is a lemon and lime flavoured

carbonated soft drink made in India by

Coca-cola.

Teem was a lemon-lime-flavored soft drink

produced by The Pepsi-Cola Company.

Price

In economics and business, the price is the assigned numerical monetary value of a good, service

or asset.

Price is also central to marketing where it is one of the four variables in the marketing mix that

business people use to develop a marketing plan.

Pricing is a big part of the marketing mix. Choosing the right price and the right pricing strategy

is

crucial to the marketing process.

The price of the product is not something that is fixed. On 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 with

the actual product itself. The price may act as a way to attract target customers.

The price of the product is decided keeping many things in mind. These things include factors

like cost incurred on the product, target market, competitors, consumer buying capacity etc.

Coke - Price

Coke was a company ruling the markets before Pepsi entered. Earlier the price of coke was cost

based i.e. it was decided on the cost which was spent on making the product plus the profit and

other expenses.

But after the emergence of other companies especially the likes of Pepsi, Coca-cola started with

a pricing strategy based on the basis of competition. Nowadays more expenses are spent

on advertising my soft-drink companies rather than on manufacturing.

Few year before Coke has brought in a revolution especially in Indian markets with the

Rs. 5 pricing strategy which was very famous. It was the first company to introduce the

small bottle of Coke for just Re.5. This campaign was very successful especially with the

price conscious Indian consumers.

Even 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. The best think about the company Pepsi

is that it is very flexible and it can come down with the price very quickly. The company is

renowned to bring the price down even up to half if needed.

But this risk taking attitude has also earned Pepsi losses. Though lowering the price would attract

the customers but it would not help them cover up the cost incurred in production hence causing

them losses.

This was the situation earlier but now Pepsi is a full-fledged and growing company. It has

covered all its losses and is now growing at a rapid rate.

Place

Place is a term that has a variety of meanings in a dictionary sense, but which is principally used

in a geographic sense as a noun to denote location, though in a sense of a location identified with

that which is located there.

In marketing, place refers to one of the 4 P's, defined as "the market place". It can mean a

geographic location, an industry, a group of people (a segment) to whom a company wants to sell

its products or services, such as young professional women (e.g. for selling cosmetics) or

middle-aged family men (e.g. for selling family cars).

Coke - Place

Coke is a multinational company and it has its market around the entire world. This can be said

just by the first page on its site which asks people to select the place of their choice. The website

looks something like this:

Pepsi – Place

Pepsi again has spread worldwide. Pepsi when entering a new market does not go in alone but it

looks for partners and mergers. Till now Pepsi has collaborated with companies like Quaker

Oats, Frito-lays, Lipton, Starbucks, etc.

Pepsi like Coke has spread all over the world. It is because of this worldwide spread that now it

is coming up with Advertisements which can be broadcasted in the different nations in the world.

The recent example with would be the Pepsi advertisements having David Beckham as it brand

ambassador.

Promotion

Promotion is one of the four aspects of marketing. Promotion comprises four subcategories:

Advertising

Personal selling

Sales promotion

Publicity and public relations

The specification of these four variables creates a promotional mix or promotional plan. A

promotional mix specifies how much attention to pay to each of the four subcategories, and how

much money to budget for each. A promotional plan can have a wide range of objectives,

including: sales increases, new product acceptance, creation of brand equity, positioning,

competitive retaliations, or creation of a corporate image.

Both the companies Pepsi and coke are famous for their promotions. The rivalry was first started

when Pepsi started with its blind taste tests known as the Pepsi Challenge. The challenge is

designed to be a direct response to critics who allege that Coca-Cola and Pepsi-Cola are identical

drinks, with no meaningful differences. The challenge takes the form of a taste test. At malls,

shopping centers and other public locations, a Pepsi representative sets up a table with two blank

cups, one containing Pepsi and one with Coke. Shoppers are encouraged to taste both colas, and

then select which drink they prefer. Then the representative reveals the two bottles so the taster

can see whether they preferred Coke or Pepsi. If Pepsi is revealed, the shopper is given a small

prize. The implication is that Pepsi tastes better than Coke, and thus consumers should purchase

Pepsi.

In blind taste tests, more consumers prefer the taste of Pepsi to that of Coca-Cola. Because Coke

was the historical leader, more people expected that they'd prefer and select Coke. Their surprise

at picking Pepsi in the blind taste test (products were served in unmarked cups) helped change

their minds about which product they prefer. Capturing this on film, Pepsi turned this into a

memorable TV campaign that lasted many years. Also ad-campaigns are put up on the television

by both the players. The following statistic just tells of much of share of ads on TV are captured

by these players.

Infact in the next graph you can see how many programs are sponsored by cola companies and

the leader among them is Pepsi. Mainly Pepsi is the company sponsoring most cricket telecasts

happening in India and spends most of its revenue in that field.

Nowadays both Coke and Pepsi are going in for Brand Ambassadors to promote their product.

These brand ambassadors are famous people who usually people idolize and people can relate to

them. The following pictures do not need any explanation as people are familiar with the

celebrities and can thus quickly identify with the product.

A list of Celebrities that are brand ambassadors for the cola companies are as follows. These

celebrities are not only asked to work in the advertisements but they also have to use the product

promoted by them and they should not use the companies rivals proucts.

CELEBRITY ENDORSMENT IN 2008-09

PEPSI COCA-COLA

Ram Charan Teja Amir Khan

Ranbeer Hrithik Roshan

Vijender(Boxer) Ganesh

Katrina Kaif Gautam Gambhir

Rani Virender Sehwag

Kareena Kapoor Vijay

M.S.Dhoni

Shahrukh Khan

Conclusion

Coca- cola company is a Beverage industry. Established in 1882 .It Headquarter is in Atlanta,

U.S.A. Pepsi is a Beverage and snacks industry Established in 1903. It Headquarter in Newyork

and U.S.A.

Pepsi and Coke are competitor and both are produce a competitive product like Coke - Pepsi

Sprite – 7UP, Minute maid – Tropicana, Fanta – Mirinda. Diet Coke – Diet Pepsi , Kinley –

Aquafina etc.

Both company are decide his price on the competition bases but price of pepsi is very flexible

Pepsi come down price very quickly.

Pepsi and Coke spread worldwide. Pepsi and coke doing very much advertisement. But pepsi is

doing more advertisement in comparison to coke .both company have film star , cricketer for

advertisement.