Competition Between PepsiCo and Coca Cola brandsCONTENTS - Executive Summary - Introduction - Literature review - Purpose of the study - Scope of the study - ObjectivesEXECUTIVE SUMMARY 1 Babasabpatilfreepptmba.com 2. Competition Between PepsiCo and Coca Cola brands The soft drinks and beverages can be said to be as old as a civilization of man. Softdrinks are known as refresher and man need to refresh him self in the time of his thirst, fatigue &dullness. The conventional Indian soft drink pattern includes Lemon juice. Butter milk, lassi etc.With entry of British India got westernized and synthetic soft drinks, which were part of thedominant life style of the western world came flooding into India. The present Corporate Exposure and Learning was done in Nectar Beverages Pvt. .Ltd,which is Franchise Owned Bottling Operation (FOBO) division?In this reportSection 1: Deals with Industry profile, Company profile and Product profile of the company.Section 2: Deals with Competitive position and Consumption pattern of consumer on lemonflavour soft drinks in Belgaum city. Research is done through personal interview with questionnaire for both retailerand consumers and found that 7UP has good market potential as compared to Sprite andconsumers prefer this brand because of taste and refreshing and they expect some more improvedtaste so that it can compete more with Sprite. 2 Babasabpatilfreepptmba.com 3. Competition Between PepsiCo and Coca Cola brands to the water, the result is a great taste, but slightly boring beverage. Now, the bottlerbrings it to life by adding carbon dioxide, a tasteless, odorless, natural gas, with a machine calleda carbonator. The government has adopted liberalized policies for the soft drink trade to give the industry a boost and promote the Indian brands internationally. Although the import and manufacture of international Introduction Retailer and Customer Survey is to be done for comparative study between 7UP &Sprit. The areas selected in Belgaum city are Vadagaon,, Hindwadi, Deshmukh Road, Tilakwadi,Camp area, Kirloskar Road, College road, Neharu Nagar, Bustand Area, Shivbasava Nagar. Necessity is the mother of invention. Pepsi Co. was founded in 1965. Late ShriModhubab Timblo, prominent industriously & business entrepreneur of Goa, found that the softdrinks in northern part of Karnataka are being supplied from out side the State. Hence he foundthe need of producing soft drinks for people of Karnataka from the land of Karnataka and fromthe water of Karnataka itself. Accordingly the dream of modern manufacturing plant came intoreality in 1984 and Nectar beverages Pvt.Ltd., a beverage plant was commissioned on the ourskirts of Dharwad, on the N.H.No.4. Nectar Beverages, belongs to big house of Goa, under the banner of Fomento Group.The group deals in Hotel, Soft drinks, and 100% E.O. Us of Mining in Goa, Karnataka &Andhra, thus believes in professionalism and promoting ownership among its entire people. All 3 Babasabpatilfreepptmba.com 4. Competition Between PepsiCo and Coca Cola brandsemployees work as partners in progress and growth of the company. Nectar Beverages is headedby Mr. Prashant Timblo, the ideal son of the illustrious father late Mr. Modhubab. Nectar Beverages has carved a special niche in the map of soft drinks in thecountry thus enjoys the highest reputation in the soft drinks market of quality productsof international brand such as Pepsi, 7 Up, Mirinda (Orange), Mirinda (Lemon), Evervess Soda,Slice, & Mountain Dew etc. Utmost care is being taken from the beginning of collection of theraw water till it turns into a sophisticated flavour drink. Literature Review PepsiCo is a world leader in convenient foods and beverages, with 2005 revenues ofmore than $29 billion and 153,000 employees. The company consists of Frito-Lay NorthAmerica, PepsiCo Beverages North America, PepsiCo International and Quaker Foods NorthAmerica. PepsiCo brands are available in nearly 200 countries and territories and generate salesat the retail level of about $78 billion. Many of PepsiCos brand names are more than 100-years-old, but the corporation isrelatively 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, includingGatorade, in 2001. PepsiCo offers product choices to meet a broad variety of needs and preference -- fromfun-for-you items to product choices that contribute to healthier lifestyles. 4 Babasabpatilfreepptmba.com 5. Competition Between PepsiCo and Coca Cola brands PepsiCos mission is To be the worlds premier consumer Products Company focused onconvenient foods and beverages. We seek to produce healthy financial rewards to investors aswe provide opportunities for growth and enrichment to our employees, our business partners andthe communities in which we operate. And in everything we do, we strive for honesty, fairnessand integrity.SHAREHOLDERS PepsiCo (symbol: PEP) shares are traded principally on the New York Stock Exchange inthe United States. The company is also listed on the Amsterdam, Chicago, Swiss and Tokyostock exchanges. PepsiCo has consistently paid cash dividends since the corporation wasfounded.CORPORATE CITIZENSHIP At PepsiCo, we believe that as a corporate citizen, we have a responsibility to contributeto the quality of life in our communities. This philosophy is expressed in our sustainabilityvision which states: PepsiCos responsibility is to continually improve all aspects of the worldin which we operate environment, social, economic creating a better tomorrow than today. Our vision is put into action through programs and a focus on environmental stewardship,activities to benefit society, and a commitment to build shareholder value by making PepsiCo atruly sustainable company. 5 Babasabpatilfreepptmba.com 6. Competition Between PepsiCo and Coca Cola brands PepsiCos beverage business was founded 1898 by Caleb Bradham, a New Bern, NorthCarolina druggist, who first formulated Pepsi-Cola. Today, Brand Pepsi is part of a portfolio of beverage brands that includes carbonated softdrinks, juices and juice drinks, ready-to-drink teas and coffee drinks, isotonic sports drinks,bottled water and enhanced waters. PBNA has well known brand such as Mountain Dew, DietPepsi, Gatorade, Tropicana Pure Premium, Aquafina water, Sierra Mist, Mug, Tropicana juicedrinks, Propel, SoBe, Slice, Dole, Tropicana Twister and Tropicana Seasons Best. PBNA manufactures and sells concentrate for some of these brands to licensed bottlers,who sell the branded products to independent distributors and retailers. PBNA providesadvertising, marketing, sales and promotional support for its brands. This includes some of theworlds best-loved and most-recognized advertising. In 1992 PBNA formed a partnership with Thomas J. Lipton Co. to selling ready-to-drinktea brands in the United States. Pepsi-Cola also markets Frappuccino ready-to-drink coffeethrough a partnership with Starbucks. Anthony Rossi as a Florida fruit packaging business founded Tropicana in 1947. In 1954Rossi pioneered a pasteurization process for orange juice. For the first time, consumers couldenjoy the fresh taste of pure not-from-concentrate 100% Florida orange juice in a ready-to-servepackage. The juice, Tropicana Pure Premium, became the companys flagship product. PepsiCoacquired Tropicana, including the Dole juice business, in August 1998. 6 Babasabpatilfreepptmba.com 7. Competition Between PepsiCo and Coca Cola brands SoBe became a part of PBNA in 2001. SoBe manufactures and markets an innovativeline of beverages including fruit blends, energy drinks, dairy-based drinks, exotic teas and otherbeverages with herbal ingredients. Gatorade thirst quencher sport drink was acquired by The Quaker Oats Company in 1983and became a part of PepsiCo with the merger in 2001. Gatorade is the first isotonic sports drink.Created in 1965 by researchers at the University of Florida for the schools football team, "TheGators," Gatorade is now the worlds leading sports drink. PepsiCo Beverages North America includes the United States and Canada.PEPSICO INTERNATIONAL Pepsi-Cola began selling its products outside the United States and Canada in the mid-1930s, opening in the United Kingdom in 1936. Operations grew rapidly beginning in the 1950s.Today, PepsiCo beverages are available in more than 170 countries and territories. Brandsinclude Aquafina, Gatorade and Tropicana. In addition to brands marketed in the United States, PepsiCo International brands includeMirinda, Seven-Up and many local brands.PepsiCo began its international snack food operations in 1966. Today, products are available innearly 170 countries. Often PepsiCo snack food products are known by local names. Thesenames include Gamesa and Sabritas in Mexico, Walkers in the United Kingdom, Simths in 7 Babasabpatilfreepptmba.com 8. Competition Between PepsiCo and Coca Cola brandsAustralia, Matutano in Spain, Elma Chips in Brazil, and others. The company markets Frito-Laybrands on a global level, and introduces unique products for local tastes. Statement of the Problem As there is neck to neck competition between PepsiCo and Coca Cola brands thesituation demands a market analysis through Retailer and Customer which gives an over view ofthe market in quantitative terms. The areas selected in Belgaum city are Vadagaon,, Hindwadi,Deshmukh Road, Tilakwadi ,Camp area, Kirloskar Road, College road, Neharu Nagar, BustandArea, Shivbasava Nagar. Statement of the problem is to know the competitive position of 7UP (Pepsi) withSprite (coca cola ) and consumption pattern of Lemon flavour soft drink of consumers and alsoto study Retailers expectation. Dealers are visiting to outlets 3 4 time every week, or dependsupon the area. The company has to know the demands of the customers and their preferredflavour brand it is done through by frequent visiting of Retailer, then came to know the needs ofthe customer. This survey covers all the dimensions that dealers consider while carryingout their business. The aim of the survey was to visit the outlets in a particular sub route and getas much information as possible.Purpose of the Study The main purpose of the survey was to visit the outlets in a particular sub route and get asmuch information as possible. To know the competitive position of 7UP (Pepsi) with Sprite 8 Babasabpatilfreepptmba.com 9. Competition Between PepsiCo and Coca Cola brands(Coca cola) and consumption pattern lemon flavour soft drink of consumer the situation demandsa market analysis through survey which gives an over view of the market in quantitative terms. The Indian Carbonated Beverage Industry is a very dynamic industry. The soft drinks arethe life style brands and are closely related with the consumer. The passion for cricket in thecountry makes it unique market. The main ingredients of soft drinks are water, sugar, addedflavour, and carbonated gas. Though some channels like Bar and Restaurants run businessthroughout year, for other channels the peak season is between February to JuneScope of the Study The market survey for comparative study between 7UP (Pepsi) & Sprite(Coca Cola) is doing in Belgaum city. The scope of study (survey) areas selected in Belgaumcity are Vadagaon,, Hindwadi, Deshmukh Road, Tilakwadi ,Camp area, Kirloskar Road, Collegeroad, Neharu Nagar, Bustand Area, Shivbasava Nagar. Dealers they will divide these areas depending upon their requirements. PepsiCois a world leader in convenient foods and beverages, with 2005 revenues of more than $29billion and 153,000 employees. The company consists of Frito-Lay North America, PepsiCoBeverages North America, PepsiCo International and Quaker Foods North America. PepsiCobrands are available in nearly 200 countries and territories and generate sales at the retail level ofabout $78 billion. Many of PepsiCos brand names are more than 100-years-old, but thecorporation is relatively young. PepsiCo was founded in 1965 through the merger of 9 Babasabpatilfreepptmba.com 10. Competition Between PepsiCo and Coca Cola brandsPepsi-Cola and Frito-Lay. Tropicana was acquired in 1998 and PepsiCo merged withThe Quaker Oats Company, including Gatorade, in 2001.Objectives: 1. To study the competitive position of 7UP with Sprite 2. To study retailer expectation. 3. To study consumption pattern of the consumer 4. To know the most preferred lemon flavour brand 10 Babasabpatilfreepptmba.com 11. Competition Between PepsiCo and Coca Cola brandsCONTENTS - Organization profile - Organization chart - Sampling - Research Design - Data collection methods - Measuring tools 11 Babasabpatilfreepptmba.com 12. Competition Between PepsiCo and Coca Cola brands ORGANIZATION PROFILE Necessity is the mother of invention. . Late Shri Modhubab Timblo, prominentindustriously & business entrepreneur of Goa, found that the soft drinks in northern part ofKarnataka are being supplied from out side the State. Hence he found the need of producing softdrinks for people of Karnataka from the land of Karnataka and from the water of Karnatakaitself. Accordingly the dream of modern manufacturing plant came into reality in 1984 andNectar beverages Pvt.Ltd., a beverage plant was commissioned on the our skirts of Dharwad, onthe N.H.No.4. Pepsi Co was founded in 1965. The CEO of Pepsi Co. is Mr. Neel Buhr and CEO ofPepsi India is Mr. Raju Bakshi and CFO is Ms. Indra Noori. The employees strength is1,53,000 and it operates in around 200 countries.MISSION: We are committed to produce & deliver top quality product to our consumer. To be theWorlds Premier Consumer products focused on convenient foods and beverages. In every thingwe do we strive for honesty, fairness and integrity. To achieve this every batch of incoming raw materials are checked for quality by our Quality Assurance Department. We use only high grade sugar Apart from this, on line & final product checks are carried out at regular intervals. 12 Babasabpatilfreepptmba.com 13. Competition Between PepsiCo and Coca Cola brands We purchase raw materials only from approved sources, approved by independent laboratories of internal repute. The entire range of equipments is made out of superior grade Stainless Steel Material. We give special attention to o Personnel Hygiene & Sanitation o House Keeping o Good Manufacturing Process o Special attention is also given to keep the Factory Surroundings Clean & Green by growing LawnNBPL: Nectar Beverages Pvt. Ltd, Dharwad is a franchisee of Pepsi Co. Late Shri MadhubabTimblo, Prominent Industrialist and business entrepreneur of Goa founded it in 1984. Nectar Beverages belongs to big house of Goa, under the banner of Fomento Group. Thegroup deals in Hotel, Soft drinks and 100% F.O.Us of Mining in Goa, Karnataka and Andhra.Mr. Prashant Timblo heads it, the idea son of the illustrious father late Mr. Madhubab. 13 Babasabpatilfreepptmba.com 14. Competition Between PepsiCo and Coca Cola brands Nectar Beverages has carved a special niche in the map of softdrnks in the country. Thus enjoys the highest reputation in the soft drinks market for quality products of international brand such as Pepsi, 7Up, Mirinda (orange), Mirinda(lemon), Everless Soda, Slice etc. utmost care is being taken from the beginning of collection of the raw water till it turns into a sophisticated flavour drink.MARKETING ENVIRONMENTAL AUDITAMCRO ENVIRONMENT: I. Demographic: Age: The Indian population has >50% people between the age group of 12-26 which is an opportunity to the company. Family size: Increase in Nuclear families acts as an opportunity to the company. Family Life Cycle: Increase in number of DINKs (Dual Income No Kids) is also an opportunity. Gender: Doesnt make any difference as such. Income: Plays a major role Occupation: Affects the buying behavior Education: Students are very potential customers. II. Economic: 14 Babasabpatilfreepptmba.com 15. Competition Between PepsiCo and Coca Cola brands Price of the product and the credit period play a major part in running the business. The increase in disposable income of end consumers has definitely helped the company to increase its sales. III. Environmental: 90% of any carbonated beverage is constituted of water, which is a scarce natural resource. IV. Technological: The continuous efforts are on to reduce the cost of production. V. Political: Politics may affect the business to some extent. VI. Cultural: Public has a good attitude towards company. Pepsi is a lifestyle brand so anychange in the lifestyle of customers directly affects the brand.TASK ENVIRONMENT I. Markets: The major market segments are Alcoholics in bars Students in soft drinks hoses, restaurants, convenience stores. Families, which like to store pet bottles.II. Customers: Need of customers is to drive away thrust. 15 Babasabpatilfreepptmba.com 16. Competition Between PepsiCo and Coca Cola brandsIII. Competitors: The major competitor is Coca-Cola along with local/ unorganized sector. Pepsi Co. Brads Coca-Colas brand Pepsi Coke 7up Sprite Mountain Dew Thums Up Mirinda lemon Limca Mirinda orange Fanta Slice MaazaDistribution and Dealers: The 3 main channels to reach the consumers are 0 Production unit Distributor Convenience GroceriesRestaurants E.g. Pan shops - General stores - Bars 16 Babasabpatilfreepptmba.com 17. Competition Between PepsiCo and Coca Cola brands Bakeries -Coldrink - Canteens Theatres Snooker bars ConsumersV. Suppliers: The suppliers are of bottles, caps, openers, posters, advertising boards, sugar,flavors. Etc.,VI. Facilitators and Marketing firms: The transportation were housing is outsourced. Pepsi Co has excellent advertisingagency. Pepsi Co is rated as top 3rd brand in India after ITC. VI. Publics: Teenagers and Alcoholics form a major opportunities.SITUATIONAL ANALYSIS The major players in soft drink market in India are Coca-Cola and Pepsi Co; bothcompanies have strong brands, which compete against each other. 17 Babasabpatilfreepptmba.com 18. Competition Between PepsiCo and Coca Cola brands The current industry growth rate is 8%, which was 22% before the pesticide issue. Thepesticide issuer has affected both the companys sales and market share very badly. The endresult was the consumers shifting to health drinks, which is an increasing trend and threat toboth the companies. In order to increase their market share both the companies introduced 200 ml bottle,which helped the total industry to grow by 10%. Currently there is a price war going between both the companies. In Belgaum market the supply is not meeting the demand in some areas. The Pepsi Co.can still do better if the supply and service is taken care of.INDUSTRY PROFILE The Indian Carbonated Beverage Industry is a very dynamic industry. The soft drinks arethe life style brads and are closely related with the consumers. The passion for cricket in thecountry makes it a unique market. The Indian Carbonated Beverage Industry is worth Rs.1000crore, which is equal to270mm cases i.e., 6480mm bottled. The main ingredients of a soft drinks are water, sugar, added flavors, and carbonated gas.Though some channels like Bar and Restaurants run business throughout year, for other channelsthe peak season is between February to June.Manufacturing Process:WATER AND WATER TREATMENT 18 Babasabpatilfreepptmba.com 19. Competition Between PepsiCo and Coca Cola brands Pure water is taste less, colours less and odor less. Water as it occurs in nature, whateverthe source, always contains impurities in solution or in suspension. The determination of theseimpurities makes water analysis necessary and the control of these impurities makes waterconditioning essential. The various sources of water can be classified as Rainwater, surface water, groundwater. Irrespective of the source of water, the water has to be tested and treated before rakinginto the production. Testing and Treatment procedure adopted at M/s. Nectar Beverages Pvt.Ltd., Dharwad.The source of water at Nectar Beverages Pvt.Ltd., is ground water. The water is tested orvarious parameters like, hardness, alkalinity, suspended impurities, and for Microorganisms.Treatment Procedure: There are two types of water treatment adopted at Nectar Beverages Pvt.Ltd., 1. Chemical Batch Treatment: This water is used for beverage purpose. 2. Ion Exchange: This water is used for Boiler Feed water, Cooling tower, D.G.Sets., Condenser, Heat Exchanger & Bottle washer. 1. Chemical Batch treatment process: Here, the raw water is collected in storage tanks and dosages for chemical treatment are given according to the characteristics of the raw water. The source of raw water is bore well. At preset; we are holding three water treatment storage tanks, ou8t of which two tanks areof 3, 00000 ltr. Capacity and one is 4, 00000 ltr capacity. 19 Babasabpatilfreepptmba.com 20. Competition Between PepsiCo and Coca Cola brands Raw water is collected from the bore wells in the storage treatment tanks and analyzedthe characteristics of raw water Viz- P- alkalinity, M- alkalininity, temporary hardness andcalcium hardness, afterwards chemical dosages are fixed. After addition of chemicals,mechanical agitator stirs the water, and 3 hors contact period is given before taking the water forproduction. Treated water passed through sand filter to remove and flock carry over, then an activatedcarbon filter, which removes chlorine, and off tasted/odor causing impurities. Finally it goesthrough 5 Micron pore size polishing filters to remove and carbon that may have been carried outover from the carbon purifier, and then through ultraviolet. Chlorine concentration is maintainedat 6 to 8 PPM level before carbon filter and 2 hours contact time prior to dechlorination.Details of Chemicals used: 1. Lime: Added to remove alkaline compounds from water to an acceptable level and to reduce temporary hardness. 2. Bleaching powder: Added for chlorination to oxidize micro organism. 3. Ferrous sulphate: Added for coagulation and flocculation i.e., to remove the suspended solids and also insoluble materials created by chlorination and alkalinity reduction is removed.The sludge is drained and the treatment tanks cleaned with water after every treatment and thenfresh raw water is taken for fresh treatment. ION Exchange Method:Source of water Bore well 20 Babasabpatilfreepptmba.com 21. Competition Between PepsiCo and Coca Cola brandsLiquid hypochlorite is injected into the on-line water flowing from Bore well to raw water tanks.Once the raw water is chlorinated, after giving sufficient contact time, the water is passedthrough sand filter, carbon filter and resin bed. Then the soft water is stared in soft water storagetanks. Before the water goes into storage tanks, 2- PPM of chlorine is injected into the on-linewater flowing from softener to soft water storage tanks. Contact time in storage tank isminimum 2 hours. Then the water from the tank are being pumped on it passed through 5Micron pore size polishing filters to the bottle washer/boiler. The concentration of chlorine atthe final outlet will be around 2 PPM.SWEETENING AGENT & SYRUP PREPARATION Sweetening agents are those subsistence, which when blended with flavour, acid, etc.,will provide satisfactory sweet taste in the finished beverage. They also furnish body, whichhelps to carry or transits the flavour. They also give energy or food value to the beverage.Sugar is the sweetening agent, which is used in our industry.Sugar is colour less or white when pure and derived from sugar cane.Syrup Preparation: The preparation of the syrup is certainly one of the most important operations in thebeverage plant, both from the standpoint of sanitation and control of concentration. The objectin syrup making is to prepare satisfactorily bended and finished syrup from which uniformsbeverages of high quality can be produced. Normally required quantity of sugar of high quality is added to treated water and heatedto 85 C, in a high grade stainless steel double jock vessel. Activated carbon is added to this to 21 Babasabpatilfreepptmba.com 22. Competition Between PepsiCo and Coca Cola brandsremove impurities. Impurities along with activated carbon added to the sugar are separated fromthe sugar solution by filtering the sugar syrup. Filter paper and Hyflo supercel are used as filteraid. The temperature of the clear syrup thus obtained is brought down to 20C and stored iscalled Simple syrup. When the syrup is completely prepared by the addition and blending of all flavoringingredients it is called as Ready / Finished / Flavored syrup. The syrup is ready for use inproduction process.CO2 & CARBONATION The phenomenal of acceptance of carbonated beverage as a form of refreshment is donein part to a unique taste, Zest, and sparkle imparted to the beverage by Carbon Di-Oxide. It alsoadds to the life of the beverage.The CO2 used for Beverage purpose are 99.9% pure, free from moisture, air, oil, grease and otherimpurities. The amount of CO2 dissolved in solution is called as volumes. The number of volumes ofgas in the finished beverages has a definite relationship to the taste of the beverage. Correctcarbonation means a sparkling, stimulating, thirst quenching beverage that completely refreshesand satisfies the consumer. Since there is definite relationship between taste and carbonation, itis extremely important to determine and maintain the carbonation, which has proved mostacceptable through experience in consumer section. The technique adopted at M/s. N.B.P.L. For carbonating the beverage is as under: 22 Babasabpatilfreepptmba.com 23. Competition Between PepsiCo and Coca Cola brandsThe ready syrup, which is prepared and stored in ready syrup tanks, is taken to the bottling line.It is passed through a machine called Premix where the syrup is automatically diluted withtreated water to the required level. Once it is diluted it is sent to the carbonator for carbonation. For carbonating the beverage a mechanical device known as CARBONATOR is used.Co2 gas enters the carbonator through a valve at the top of the body of the carbonator. The domeas well as the body of the carbonator is filled with gas. Syrup is sprayed into the carbonatorsfrom the top, which flows down through the baffle plates provided inside the carbonator. As thewater flows down it gets mixed with the Co2 gas present inside the carbonator. Carbonation can best be obtained by increasing the pressure inside the carbonator vesseland by pre-cooling the syrup before it is pumped to the carbonator. Low gas volume productneed not be pre chilled Concentrates Flavoring Materials used in making carbonated beverages are primarily are alcoholicextracts, emulsions, alcoholic solutions or fruit juices. Concentrates or non-alcoholic beverage bases are supplied by our principal companyfrom Channo (Punjab) having international standards. On addition ofconcentrate to the simple syrup we get respective finished syrup ready for further process tobottle beverages.Bottle washing and bottle inspection ONE of the most important aspects of the bottling operation is the cleaning of thereusable bottle when it returns to the bottling plant. In order to be reused the bottle must be 23 Babasabpatilfreepptmba.com 24. Competition Between PepsiCo and Coca Cola brandssterile, of acceptable appearance, rinsed free of any detergent or sterilizing agent, and of goodmechanical strength. The object of bottle washing is to product both a clean bottle and sterile one. The factthat the bottle looks clean does not indicate it is sterile, and on the other hand, a dirty lookingbottle may be a sterile one. The present day bottle washer is designed to both clean and sterilize bottle before sendingthem to the filling line.Bottle Washing Compounds: Members of the alkali family of chemicals make up the basis of most bottle washingcompounds. Caustic soda is the principle ingredient because it has by far the best germicidalproperties. We also add certain chemicals to caustic solution to improve the detergent action of thesolution. Three factors are crucial in the germicidal efficiency of the washer. These are: contacttime, caustic strength and temperature.Operations of the Bottle Washer: 1. The first step in the operation precedes the washer. When the cases of empties return to the bottling plant, they must be sorted and culled to remove especially dirty bottles, or ones contaminated with paint, tar, etc., or chipped or broken bottles. This operation is often done by hand. 24 Babasabpatilfreepptmba.com 25. Competition Between PepsiCo and Coca Cola brands 2. The inspected bottles are feed into the bottle washing machine, automatically. The bottles are turned up side down to drain any contents and given a pre rinse spray wash both internally and externally with plain water with certain pressure. This operation is called pre rinse operation. Then the bottles are moved to pre wash compartment, where the bottles are spray washed both internally and externally with 1 to 1.5% caustic solution @ 45C to 55C temperature. 3. Bottles are then, moved into a tank in the bottle washing machine, where the bottles are soaked with caustic solution of 3 to 3.5% @ 75C temperature. To get this best results that bottles are to be soaked in this compartment for a minimum of 7 minutes at the caustic strength & temperature given as above. This operation cleans and sterilizes the bottle. 4. Then the soaked bottles are moved to a compartment called Hydro, where again the bottles are given spray wash both internally and externally with 1 to 1,5% caustic wash @ 50 to 55C. 5. Bottles are moved to a compartment called pre-final compartment where again the bottles are given spray wash with soft water to remove the caustic traces. Here the temperature is maintained around 40 to 45C.Finally bottles free from caustic moved to a compartment called final rinse compartment wherethe bottles are again, wanted sprayed both inside and outside with soft water to deliver clean andsanitary bottles to the conveyor enroute to filler at ambient temperature. 25 Babasabpatilfreepptmba.com 26. Competition Between PepsiCo and Coca Cola brandsBefore the bottles moved through the conveyor, the bottles are subjected to methylene blue testto ensure the bottles are free from mold and as also tests are carried our to determine whether thebottles are free from caustic traces. These tests are done at random.Then the washed bottles are moved through conveyor to filler for filling operation.Before the bottles are moved to filler the bottles are subjected to visual inspection, which iscalled bottle inspection.Bottle Inspection:The clean bottles undergo inspection after they leave the washer and before they arrive at thefiller. Inspection can be done visually by an individual. It is a job requiring a great deal ofconcentration and no individual can be efficient for long stretches at time. Provision should bemade for changing inspectors frequently, and adequate bring diffused light should be providedwhich illuminates all parts of the bottle effectively, but does hot glare in the operators eyes.A receptacle should be provided, convenient to the inspector for non-usable bottles, and casesshould be handy to accumulate unclean bottlers for rewashing. Those bottles found acceptable tothe empty bottle inspector are sent for filling and crowning. 26 Babasabpatilfreepptmba.com 27. Competition Between PepsiCo and Coca Cola brandsFilling and the bottling line The bottles, on a suitable conveyor line arrive at the rotary filler, which is equipped withfiling heads. The beverages filling unit includes a filling tank, which receives beverage from thecarbonator.The tank is also connected to the gas chamber of the carbonator. This connection insuresbalanced pressure and a proper beverage level in the tank. On entering the head, the bottle is sealed to the filling valve and a counter pressure isestablished in the bottle. At this point, the pressure inside the bottle is equal to and derived fromthe filling tank. Once the bottle is properly pressurized, carbonated water flows in displacing air and Co2in the bottle. The displaced gas passes through the counter pressure lines back to the top of thefiller tank. When the proper level of beverage in the bottle is reached, the supply is cut off and thetop gas pressure in the bottle is sifted to the atmosphere. Once the top pressure has been released, the bottle is removed from the valve and passesto the crowner. The crowning unit consists of the hopper for holding the crown supply, a crown chuteand the crowning mechanism. The crowned bottle then moves from the crowner on to the outfeed conveyor. 27 Babasabpatilfreepptmba.com 28. Competition Between PepsiCo and Coca Cola brandsFinal Inspection Point: Then the sealed bottles are moved on a conveyor line and it is subjected to a finalinspection. Where the inspector checks for un crowned bottles, over/under filled bottles, foreignmatter (if any), and for any other visual defects. Once the inspector satisfies with the quality of product and package, he allows movingthe bottles, further to the collecting table, where the bottles are manually collected and put in thecrates of 24 bottles and moved further for warehousing, and awaiting shipment.Plant Sanitation The most scrupulous sanitation practices are essential in soft drink plant. The higheststandard of cleanliness for premises, personnel and equipment is obviously necessary due to thetype of operation involved that of manufacturing a food product. Sanitation is necessary to insure the keeping qualities, proper appearance and full flavourof any soft drink. When the equipment becomes contaminated, yeast, bacteria or moldmicroorganisms begin to appear in the finished beverage. Increased number of thesemicroorganisms will cause the development of undesirable tastes and odors and ultimate spoilageof the product. Nothing will kill the demand for a beverage any quicker than off-tastes and odorsor product spoilage. Hence sanitation, good plant house keeping and good manufacturing practice are strictlyimplemented at N.B.P.L. 28 Babasabpatilfreepptmba.com 29. Competition Between PepsiCo and Coca Cola brandsQuality Assurance Perhaps the most important activities in a bottling plant are those concerned with themaintenance of the standards of purity and uniformity set for the beverages produced. Theseactivities can be grouped together under the heading of Quality Assurance. To get the top most quality of finished product, all the ingredients such as water, sugar,Co2, concentrate are strictly inspected and analyzed by our Quality Assurance Department.Apart from raw materials, on line sampling, finished products are also tested. Samples of beverages produced are picked up from the market for testing by independentlaboratories of international repute. History of organization The manufacturing of soft drinks began in the 1830s. However, the evolution of softdrinks took place over a much longer time period. The forerunners of soft drinks began morethan 2,000 years ago when Hippocrates, the "Father of Medicine," first suspected that mineralwaters could be beneficial to our well-being. But Hippocrates did not envision drinking theeffervescent mineral waters bubbling from the earths crust. Instead, the Greeks and Romansused them for bathing and relaxation. More than a thousand years passed before mineral watersmade the transition from therapeutic bath to refreshing beverage. 29 Babasabpatilfreepptmba.com 30. Competition Between PepsiCo and Coca Cola brands The soft drink industry was a seasonal business in the early days, operating primarilyduring the summer months. Sales were limited by few outlets for the new carbonated beverages,and by the consumers restricted mobility.How Soft Drinks Are Made: Soft drinks are mostly water. So the quality of the water going into soft drink is veryimportant. A series of filtration systems produces the super-purified water that is fresh, clean andclear.The Flavor Secret Heres where the magic happens. From secret recipes, flavorings are added to give eachsoft drink its unique taste. By combining sweeteners, herbs, berries, and many other wholesomeingredients, a syrup base is created which is added to the pure waterAdding Bubbles Is A Gas:After the flavors are added brands like Pepsi and Coke is enhanced in India the local brands arebeing stabilized by advertisements, good quality and low cost. The soft drinks market till early 1990s was in hands of domestic players like Campa,Thumps up, Limca etc but with opening up of economy and coming of MNC players Pepsi andCoca-Cola the market has come totally under their control. Non-alcoholic soft drink beverage market can be divided into fruit drinks and softdrinks. Soft drinks can be further divided into carbonated and non-carbonated drinks. Cola,lemon and oranges are carbonated drinks while mango drinks come under non-carbonated 30 Babasabpatilfreepptmba.com 31. Competition Between PepsiCo and Coca Cola brandscategory. The market can also be segmented on the basis of types of products into cola productsand non-cola products. Cola products account for nearly 63-64% of the total soft drinks market.The brands that fall in this category are Pepsi, Coca- Cola, Thumps Up, and Diet coke, DietPepsi etc. Non-cola segment, which constitutes 36-37%, can be divided into 4 categories basedon the types of flavors available, namely: Orange, Cloudy Lime, Clear Lime and Mango.Soft drink production area: The market preference is highly regional based. While cola drinks have main marketsin metro cities and northern states of UP, Punjab, Haryana etc. Orange flavored drinks arepopular in southern states. Sodas too are sold largely in southern states besides sale through bars.Western markets have preference towards mango-flavored drinks. PepsiCo is a world leader in convenient foods and beverages, with revenues of about$29 billion and over 153,000 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 andGatorade/Tropicana North America) and Quaker Foods NorthAmerica. PepsiCo International includes the snack businesses of Frito-Lay International andbeverage businesses of PepsiCo Beverages International. PepsiCo brands are available in nearly200 countries and territories. 31 Babasabpatilfreepptmba.com 32. Competition Between PepsiCo and Coca Cola brands In May 1886, Doctor John Pemberton a pharmacist from Atlanta, Georgia inventedCoca Cola. John Pemberton concocted the Coca Cola formula in a three legged brass kettle in hisbackyard. The name was a suggestion given by John Pembertons bookkeeper Frank Robinson. The soft drink was first sold to the public at the soda fountain in Jacobs Pharmacy inAtlanta on May 8, 1886. Until 1905, the soft drink, marketed as a tonic, contained extracts of cocaine as well asthe caffeine-rich kola nut. By the late 1890s, Coca-Cola was one of Americas most popularfountain drinks. With another Atlanta pharmacist, Asa Griggs Candler, at the helm, the Coca-Cola Company increased syrup sales by over 4000% between 1890 and 1900. Advertising, wasan important factor in Pemberton and Candlers success and by the turn of the century, the drinkwas sold across the United States and Canada. Around the same time, the company began sellingsyrup to independent bottling companies licensed to sell the drink. Even today, the US soft drinkindustry is organized on this principleThe competition: In 1931, when Coca-Cola was the envy of the world of soft drinks and one of themost worry-free profit machines in the history of business in the United States, Pepsi-Cola wasdeclared bankrupt for the second time in its history. In 1987, PepsiCo, Inc., with sales of over$11 billion, ranked 29 in Fortunes list of the nations 500 largest corporations. One analystasserted in 1986 that PepsiCo "has emerged as perhaps the single best consumer productscompany that exists today." Coca-Colas sales in 1987 were $7.7 billion, which placed it 54 inthe Fortune 500. 32 Babasabpatilfreepptmba.com 33. Competition Between PepsiCo and Coca Cola brandsBoth companies were diversified by the mid-1980s. About 70 percent of Coca-Colas sales andalmost 85 percent of its profits, however, were still derived from soft drinks, with the remaindercoming from the food and entertainment divisions. No single foreign investment has been the center of much attention and controversy inthe late 1980 and 1990s as the PepsiCo project in India. The project, PepsiFoods Limited, was cleared by the Indian government in September1988 as a joint venture ofPepsiCo, Punjab government-owned Agro Industrial corporation (PAIC) and Voltas Indialimited. Before this project was cleared, PepsiCo made an attempt to enter into India as early asin May1985, when it teamed up with Agro Product export Ltd. A company owned by R. P. Goenka group, and sought permission from the centralgovernment to import cola concentrate and sell a PepsiCo brand soft drink in the Indian market,in return for export of juice concentrate from Punjab. Under this proposal, the main objectivesput forward by PepsiCo were to promote the development and export of Indian made and Agrobased products and to foster the introduction and development of PepsiCo products in India.This proposal which was submitted to the secretary at Ministry of Industrial developmentreceived rejections on the grounds that the import of concentrate could not be agreed to and theuse of foreign brand names as Domestic Tariff Area (DTA) was not allowed. PepsiCo successfully played the Punjab card and again put forward a proposal in 1986with stress more on diversification of Punjab agriculture and employment generation rather onsoft drinks. The proponents of project called it as a second Green Revolution in Punjab andprojected it as harbinger of a horticulture revolution that would end stagnation in Punjabs ruralsector and would help in promoting small and middle farmers. A strong argument was putforward that this project will create ample of employment opportunities for the unemployed 33 Babasabpatilfreepptmba.com 34. Competition Between PepsiCo and Coca Cola brandsyouth who has taken the path of terrorism and there by help in restoration of peace in Punjab.This argument was well received in the political circles in Delhi and Punjab, which finally led toPepsiCos entry into India in the form of joint venture with PAIC and Voltas as its partners. Theequity of Pepsi Foods Limited was divided among the partners with PAIC holding 36.11 %,Voltas 24% and PepsiCo 36.89% coupled with thePunjabCard. PepsiCo also made certaincommitments with Indian government that also formed the basis of its entry, such as The project will create employment for 50000 people nationally, including 25000 jobs in Punjab alone; 74 percent of the total investment will be in food and agro-processing. Manufacturing of soft drinks will be limited to only 25 percent. PepsiCo will bring advanced technology in food processing and provide thrust by marketing Indian products abroad. State of the art technology in food processing and provide in the field of soft drink manufacturing and soft drink manufacturing at no foreign outflow; 50% of the total value of production will be exported: An Agro research center will be established by Pepsi Co in consultation with ICAR and Punjab Agricultural University. No foreign brand name will be used for domestic sales; The export import ratio will be 5:1 over 10 years, which means that for every dollar spent in foreign exchange on this project, the company will ensure an export earning of 5 dollars for 10 years. 34 Babasabpatilfreepptmba.com 35. Competition Between PepsiCo and Coca Cola brands 25% of the total fruits and vegetable crops in Punjab will be processed in the project A substantial increase in government revenue due to consumer market expansion and tax collection. The proposal concluded by stating how well the project fitted with broad objectivesof the economy and how it specifically supported national priorities in area such as Exports,Agriculture, Employment and Technology. Many of PepsiCos brand names are over 100-years-old, but the corporation isrelatively 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. Employees, business partners and the communities in which company operates andin everything company does, company strives for honesty, fairness and integrity. 35 Babasabpatilfreepptmba.com 36. Competition Between PepsiCo and Coca Cola brands ORGANIZATION CHART Nectar Beverage Pvt. Ltd Sales & Marketing Head Territory Development Sales manager Marketing Manager Prod.n Finance Manager ManagerArea sales Manger 1 Area sales Manager 2CE1 CE2 CE3 CE4 CE1 CE2Distributor1 Dist.2 Dist.3 Dist.4 Route1 Route2 Route3 SAMPLING 36 Babasabpatilfreepptmba.com 37. Competition Between PepsiCo and Coca Cola brands All the potential retaailers in a particular selected area were considered is the sample.The sample will be divided in 3 categories. 1. Convenience, 2. Grocery,3. Restaurant. The Convenience like pan shops, bakeries, theatres etc., Groceries like generalstores and Restaurant like bars, cold drink houses & canteens etc. The sample sizes will 50 retailers and 100 customers RESEARCH DESIGN AND METHODOLOGY Selection of Data collection Method: Primary data: Tabular format filling In-depth Interview Interaction. Secondary data: Internet Selection of Measurement Technique: Quantitative analysis, bar & pie charts. Primary considerations in Sampling - Population: Retailer and consumers of Belgaum - Sample Frame: selected areas in Belgaum - Sample Size: 50 retailers and 100 customers - Sample Plan: visit to pepsi company retailers by vehicle & by walk. Method of Analysis: Quantitative 37 Babasabpatilfreepptmba.com 38. Competition Between PepsiCo and Coca Cola brands Ethical aspects: I have made an effort to make this research work free from personal Opinions and likings. Time and Financial Cost: Total survey took 12 to 15 days and Cost incurred was Rs 2000/- Limitations of study: 1) The study was confined to Belgaum city 2) The study was limited to only 50 retailers and 100 consumers 38 Babasabpatilfreepptmba.com 39. Competition Between PepsiCo and Coca Cola brandsCONTENTS - Results & discussion with graphs & chart - Conclusion, a proposed action plan with resource requirements Retailer response analysis1) Major lemon flavor preferred by customer 39 Babasabpatilfreepptmba.com 40. Competition Between PepsiCo and Coca Cola brands 7up 22 Sprite 15 Limca 7 Mirinda lemon 6 50% 44% 45% 40% 35% 30% 30% 25% Series1 20% 14% 15% 12% 10% 5% 0% 7up Sprite Limca Mirinda lemon Source: field survey Major sale of lemon flavors brands like 7up(pepsi) and sprite (coca cola) and otherswhere 7up having sale of 42%, sprite having 30%, limca having 16% and mirinda lemon having8%2) Reason for sale of particular brand 7UP 40 Babasabpatilfreepptmba.com 41. Competition Between PepsiCo and Coca Cola brands Availability 6 consumer demand 47 price 2 advertisement 13 80% 69% 70% 60% 50% 40% Series1 30% 20% 19% 9% 10% 3% 0% Availability Consumer demand Price Advertisement Source: field survey Since consumer demand is more for 7up brand is about 69% is the reason for sale ,19%advertisement, 9% due to availability and only 3% sale due to priceB) Reason for sale of particular brand Sprite 41 Babasabpatilfreepptmba.com 42. Competition Between PepsiCo and Coca Cola brands Availability 6 consumer demand 35 price 3 advertisement 12 70% 63% 60% 50% 40% Series1 30% 21% 20% 11% 10% 5% 0% Availability consumer price advertisement demand Source: field survey Since consumer demand is more for sprite about 63% is the reason for sale 21% dueadvertisement, 11% availability and only 5% sale due to price3) sale of cases per month lemon flavour brand (7up) 42 Babasabpatilfreepptmba.com 43. Competition Between PepsiCo and Coca Cola brands 1-2 case 14 2-4 case 28 4-6 case 5 6& above 3 60% 56% 50% 40% 28% 30% Series1 20% 10% 10% 6% 0% 1-2 case 2-4 case 4-6 case 6& above Source: field surveyBased on the survey it is revealed that lemon flavor Pepsi brand sale 1-2 case is 28%, 2-4 cases is56% ,4-6 cases is 10% and 6 & above is 6% due to season fluctuation some variation may occurs 43 Babasabpatilfreepptmba.com 44. Competition Between PepsiCo and Coca Cola brands4) Further expectation from lemon flavor 7UP Improve taste 27 Better availability 19 Better Benefits 30 Others 14 Others 16% Better Benefits 33% Series1 Better availability 21% Improve taste 30% 0% 5% 10% 15% 20% 25% 30% 35% Source: field survey 44 Babasabpatilfreepptmba.com 45. Competition Between PepsiCo and Coca Cola brands based on the response 30% of the retailers expect improve taste, 21%better availability, 33%expect better benefits which include gifts, tour package etc if they sale more and 16% expectothers feature like repair charges, cooling charges ect5) Sale of 7UP Reduced 13 Not reduced 37 Reduced 26% Reduced Not reduced Not reduced 74% Source: field survey Based on the survey it was found that 74% of the retailer felt that the sale of 7up isnot reduced and 26% say reduced due to lean season. 45 Babasabpatilfreepptmba.com 46. Competition Between PepsiCo and Coca Cola brandsB) Sale of Sprite Reduced 18 Not reduced 32 Reduced 36% Reduced Not reduced Not reduced 64% Source: field survey 46 Babasabpatilfreepptmba.com 47. Competition Between PepsiCo and Coca Cola brands From the response 64% of the retailer felt that the sale of sprite is not reduced and 36%say reduced.6) Delivery of soft drink 7UP (pepsi) Yes 39 No 11 No 22% Yes No Yes 78% Source: field survey 47 Babasabpatilfreepptmba.com 48. Competition Between PepsiCo and Coca Cola brands 78% of the retailer are satisfied with delivery of the product where as 22% are notsatisfied with delivery provided by the pepsi companyB) Delivery of soft drink Sprite (coca cola) Yes 35 No 15 Yes No yes 70% 30% no Source: field survey 48 Babasabpatilfreepptmba.com 49. Competition Between PepsiCo and Coca Cola brands 70% of the retailer are satisfied with delivery of the product where as 30% are notsatisfied with delivery provided by the coca cola company7) Satisfied with commission/ margin paid by 7up (pepsi) Yes 48 No 2 No 4% Series2 Yes 96% 0% 20% 40% 60% 80% 100% 120% Source: field survey 49 Babasabpatilfreepptmba.com 50. Competition Between PepsiCo and Coca Cola brands 96% of the retailers are satisfied with commission/margin paid by the pepsicompany remaining 4% are not satisfied.B) Satisfied with commission/ margin paid by Sprite (coca cola) yes 46 No 4 No 8% Series1 Yes 92% 0% 20% 40% 60% 80% 100% Source: field survey 50 Babasabpatilfreepptmba.com 51. Competition Between PepsiCo and Coca Cola brands 92% of the retailers are satisfied with commission/margin paid by the coca colacompany. Remaining 8% are not satisfied.8) Satisfied with credit and payment procedure by 7up (pepsi) Yes 41 No 9 No 18% Yes No Yes 82% Source: field survey 51 Babasabpatilfreepptmba.com 52. Competition Between PepsiCo and Coca Cola brands 82% of retailers are satisfied with credit facility and payments procedure provided bythe pepsi company remaining 18% are not satisfiedB) Satisfied with credit and payment procedure by Sprite (coca cola) Yes 38 No 12 No 24% Yes No Yes 76% 52 Babasabpatilfreepptmba.com 53. Competition Between PepsiCo and Coca Cola brands Source: field survey 76% of retailers are satisfied with credit facility and payments procedure provided bythe coca cola. Company remaining 24% are not satisfied. Findings based on Retailers surveyThe following finding based on the survey consists of sample size of 50 retailerrespondents distributed in selected areas of Belgaum city.1) Major sale of lemon flavor brands like 7up (pepsi) and sprite (coca cola) and others where7up having sale of 42%, sprite having 30%, limca having 16% and mirinda lemon having 8%.2) science consumer demand is more for 7up product is about 69% where as spritehas 63% so retaining the consumer demand is must availability of sprite is lowwhen compare to 7up 53 Babasabpatilfreepptmba.com 54. Competition Between PepsiCo and Coca Cola brands3) Based on the survey it is revealed that lemon flavor Pepsi brand sale 1-2 case is 28%, 2-4cases is 56% ,4-6 cases is 10% and 6 & above is 6% due to season fluctuation some variationmay occurs4) 13% of the respondents having soft drink daily, 42% twice in a week and 30% weekly andremaining 15% of the respondents having soft drink occasionally.5) Retailers expect some more better benefits like gifts, tour package and improvetaste so they can sale more.6) based on survey found that sale of both 7up and sprite brand is not reduced.When compare to each other 7up having (78%) better sales than sprite (70%).7)This has been observed that majority of the retailers are happy with delivery atthe right time, credit facility and commission provided by the company. Consumer Response Analysis.1) Lemon flavor preferred by consumers 7UP 42 Sprite 34 Others 14 54 Babasabpatilfreepptmba.com 55. Competition Between PepsiCo and Coca Cola brands others 16% 7UP 7UP 46% sprite others sprite 38% Source: field survey Based on the survey 46% of the respondents prefer to drink 7up and 38% of the respondentsprefer to drink sprite and remaining 16% prefer other brands.2) Consumption pattern of soft drink Daily 12 Twice a week 38 55 Babasabpatilfreepptmba.com 27 weekly occasionally 13 56. Competition Between PepsiCo and Coca Cola brands 45% 42% 40% 35% 30% 30% 25% Series1 20% 15% 15% 13% 10% 5% 0% Daily Tw ice a w eekly occationally w eek Source: field survey From the survey 13% of the respondents having soft drink daily, 42% twice in a week and 30% weekly and remaining 15% of the respondents having soft drink occasionally.3) Reasons behind preferring 7up 56 Babasabpatilfreepptmba.com 57. Competition Between PepsiCo and Coca Cola brands Taste 23 availability 4 refresh ness 18 price 1 promotion 15 bottling/labeling 0 0% Taste 25% availability 37% refresh ness 2% price promotion 29% 7% bottling/labeling 57 Babasabpatilfreepptmba.com 58. Competition Between PepsiCo and Coca Cola brands Source: field survey 37% of the respondent prefer a particular 7up brand because of taste, 29% prefer because of itis refreshing and 2% prefer because of price, 25% of respondent prefer because of promotionalactivities and rest of the 7% respondents prefer a particular brand because of availability. B) Reasons behind preferring Sprite Taste 18 availability 8 refresh ness 15 price 2 promotion 13 bottling/labeling 0 58 Babasabpatilfreepptmba.com 59. Competition Between PepsiCo and Coca Cola brands 0% Taste 23% 32% availability refresh ness 4% price promotion 27% 14% bottling/labeling Source: field survey32% of the respondent prefer a particular sprite brand because of taste, 27% prefer because ofit is refreshing and 4% prefer because of price, 23% of respondent prefer because ofpromotional activities and rest of the 14% respondents prefer a particular brand because ofavailability.4) Mode of advertisement for 7up news paper/magazine 5 TV ads 19 Hoardings 5 Internet 8 other 7 59 Babasabpatilfreepptmba.com 60. Competition Between PepsiCo and Coca Cola brands new s other paper/maga news 16% zine paper/magaz 11% ine TV ads Internet 18% Hordings TV ads 44% Internet Hordings 11% other Source: field survey43% of respondent are convinced with TV ads as a mode of advertisement, 18% with internet,7% with others like celebrities, cartoons and 5% by news papers, 5% by hoarding are theconvenience mode of advertisement B) Mode of advertisement for Sprite 60 Babasabpatilfreepptmba.com 61. Competition Between PepsiCo and Coca Cola brands news paper/magazine 6 TV ads 15 Hoardings 5 Internet 7 other 3 Other News News 8% Paper/ma Paper/magazine gazine TV ads 17% Internet 19% Hoardings Internet Hoardings TV ads 14% Other 42% 61 Babasabpatilfreepptmba.com 62. Competition Between PepsiCo and Coca Cola brands Source: field survey 42% of the respondents agree with TV ads as a mode of advertisement is convincing, 19% are saying internet, 17% news paper, 14% are saying hoarding and only 8% respondents says others like celebrities.5) Consumer preference of 7up brand based on their profession student 59 service 17 other 14 62 Babasabpatilfreepptmba.com 63. Competition Between PepsiCo and Coca Cola brands other 16% service 19% Series1 student 65% 0% 20% 40% 60% 80% Source: field surveyOut of 90% respondent 65% belongs to student professions, 19% belongs to services likegovernment and private sector and 16% of the respondent belongs to other profession6) Consumer opinion about lemon flavor 7up brand Excellent 6 Good 22 Moderate 14 Poor 2 Very poor 0 63 Babasabpatilfreepptmba.com 64. Competition Between PepsiCo and Coca Cola brands 64 Babasabpatilfreepptmba.com 65. Competition Between PepsiCo and Coca Cola brands60% 50%50%40% 31%30% Series120% 14%10% 5% 0%0% Excellent Good Moderate Poor Very poor Source: field survey 65 Babasabpatilfreepptmba.com 66. Competition Between PepsiCo and Coca Cola brands 14% of the respondent has excellent opinion about 7up lemon flavor. 50% have goodopinion , 31% moderate and only 5% poor opinion, very poor is nil B) Consumer opinion about lemon flavor sprite brand Excellent 4 Good 13 Moderate 16 Poor 3 Very poor 0 66 Babasabpatilfreepptmba.com 67. Competition Between PepsiCo and Coca Cola brands 50% 44% 45% 40% 36% 35% 30% 25% Series1 20% 15% 12% 10% 8% 5% 0% 0% Excellent Good Moderate Poor Very poor Source: field survey12% have excellent opinion about sprite lemon flavor, 36% have good opinion, 44%moderate and only 8% poor opinion and very poor is nil. 67 Babasabpatilfreepptmba.com 68. Competition Between PepsiCo and Coca Cola brands7) Expectation of consumers from 7up brand better taste/flavor 30 Availability 15 Price 7 Promotional activity 18 Packaging/labeling 9 Others 6 68 Babasabpatilfreepptmba.com 69. Competition Between PepsiCo and Coca Cola brands better taste/f lavour 7% Availablity 11% 35% Price Promotionnal 21% activity Packaging/la beling 8% 18% Others Source: field survey 69 Babasabpatilfreepptmba.com 70. Competition Between PepsiCo and Coca Cola brands Based on the response of consumer 35% expect better taste, 21% promotionalactivity, 18% expect availability of product, 11% expect convenient packaging and 8% expectreduce in price, only 7% expect others like gift offers.B) Expectation of consumers from Sprite brand better taste/flavor 26 Availability 22 Price 5 Promotional activity 15 Packaging/labeling 14 Others 6 70 Babasabpatilfreepptmba.com 71. Competition Between PepsiCo and Coca Cola brands better taste/flavour Availablity 7% 16% 29% Price Promotionnal 17% activity 6% 25% Packaging/la beling Others Source: field survey 30% of the respondent better taste from sprite, 25% availability of product, 17%promotional activities, 16% expect convenient packaging, 5% expect reduce in price and 6%expect others like gift offers etc.8) The celebrities really influence consumer to buy the soft drink strongly agree 18 agree 43 neither agree nor disagree 15 disagree 12 strongly disagree 2 71 Babasabpatilfreepptmba.com 72. Competition Between PepsiCo and Coca Cola brands 60% 48% 50% 40% 30% Series1 20% 20% 17% 13% 10% 2% 0% storngly agree neither disagree storngly agree agree nor disagree disagree Source: field survey Based on the response 20% of the respondents are strongly agree with the celebrities reallyinfluence them to buy a soft drink. 48% agree, 17% neither agree nor disagree, 13% disagree andonly 2% are strongly disagree 72 Babasabpatilfreepptmba.com 73. Competition Between PepsiCo and Coca Cola brands Findings based on consumer survey1). Based on the survey 49% of the respondents prefer to drink 7up and 40% of the respondentsprefer to drink sprite and remaining 11% prefer other brands.2). 37% of the respondent prefer a particular 7up brand because of taste, 29% prefer because of itis refreshing and 2% prefer because of price, 25% of respondent prefer because of promotionalactivities and rest of the 7% respondents prefer a particular brand because of availability. Where as, 32% of the respondent prefer a particular sprite brand because oftaste, 27% prefer because of it is refreshing and 4% prefer because of price, 23% of respondentprefer because of promotional activities and rest of the 14% respondents prefer a particularbrand because of availability.3) Based on the response of consumer 35% expect better taste, 21% promotional activity, 18%expect availability of product, 11% expect convenient packaging and 8% expect reduce in price,only 7% expect others like gift of Where as 30% of the respondent better taste from sprite, 25% availability of product, 17%promotional activities, 16% expect convenient packaging, 5% expect reduce in price and 6%expect others like gift offers etc.4) Out of 90% respondent 65% belongs to student professions, 19% belongs to services likegovernment and private sector and 16% of the respondent belongs to other profession5) 14% of the respondent have excellent opinion about 7up lemon flavor. 50% have goodopinion , 31% moderate and only 5% poor opinion, very poor is nil. where as, 73 Babasabpatilfreepptmba.com 74. Competition Between PepsiCo and Coca Cola brandssprite has 12% have excellent opinion about sprite lemon flavor, 36% have good opinion, 44%moderate and only 8% poor opinion and very poor is nil6) 20% of the respondents are strongly agreed with the celebrities really influence them to buy asoft drink. 48% agree, 17% neither agree nor disagree, 13% disagree and only 2% are stronglydisagree7) 42% of the respondents agree with TV ads as a mode of advertisement is convincing to them,19% is saying internet. 74 Babasabpatilfreepptmba.com 75. Competition Between PepsiCo and Coca Cola brands Suggestion Consumers prefer 7up (Pepsi) lemon flavor soft drink because of its taste but they expect some more improvement in. Therefore the company has to improve the taste to satisfy the consumers and finally to have more sales Good taste is the major factor, which influence to buy a soft drink. Therefore the company should try to retain its taste. Retailers are satisfied with sale of 7up but they also expect some better benefits like repair charges, cooling charges, gifts and improved taste. So, that they can sell more. As a major segment of consumer are student / teenagers. Sponsoring them for their educational assistance like scholarship and prizes would sure increase the brand image. This has been observed that majority of the retailers are happy with delivery at the right time, credit facility and commission provided by the company The company should undertaken social responsibility campaigns like AIDS awareness, population control pollution control etc and activities like construction of hospital, roads. Consumer prefers pepsi for different occasion and they dont want to change brand. So in order to retain them the company should maintain quality of the product. 75 Babasabpatilfreepptmba.com 76. Competition Between PepsiCo and Coca Cola brands Majority of the respondents feel that celebrities really influence to buy a soft drink so company should concentrate on these aspects ConclusionIt is true to any extent that the consumer is in a state of confusion than comfort. Due to the mind-boggling advertising. Strategies used by all the brands, consumer choice haveIncreased numerously.Still consumer is the king holds its highest value. Although there is a neck to neck competitionwith Coca-Cola, Pepsi had emerged as the strongest brand.The factors influencing while decision making in consuming softDrinks in Belgaum are the taste of the product, brand name and advertisements, celebrities thatinfluence the consumer attitude to a larger extent. There is greater market potential for 7up softdrink business in Belgaum City due to the presence of a larger population of college students inthe city. At present Pepsi brands especially, lemon flavor 7UP soft drinks have a greater marketshare in Belgaum City when compared to the Coca-Cola lemon flavor brands of Sprite soft drinkamong the international brands.Thus report come to a point that, since the Belgaum city is potential market for lemon flavor 7UPsoft drink so company must concentrate on future market by improved taste. 76 Babasabpatilfreepptmba.com 77. Competition Between PepsiCo and Coca Cola brandsCONTENTS - Executive Summary - Appendix Questionnaire - Bibliography Retailer code sheet 77 Babasabpatilfreepptmba.com 78. Competition Between PepsiCo and Coca Cola brands QQ.No 4 Q No. 7 Q8 Q9 Q 11 Q 12 Q 13 A1 A2 A3 A4 B1 B2 B3 B4 1 2 3 4 1 2 1 2 1 2 1 2Samples 1 1 1 2 4 1 1 3 2 1 1 1 1 1 2 1 2 3 2 2 2 4 2 2 1 1 1 1 1 1 3 2 2 2 4 1 2 1 1 1 1 1 1 1 4 1 2 3 2 2 1 1 1 1 1 1 5 2 2 1 2 3 1 1 1 1 1 1 2 1 6 1 2 4 1 2 4 2 1 2 1 1 1 2 1 7 3 1 2 4 2 4 1 3 2 2 2 1 1 1 1 1 8 2 2 2 2 3 2 2 1 1 1 2 1 2 9 1 2 2 1 1 1 1 1 1 1 1 1 10 2 2 3 2 2 1 1 1 1 1 1 11 1 2 2 1 4 2 2 1 1 1 1 1 2 12 1 2 3 1 3 2 1 1 1 1 1 1 1 13 3 2 2 2 3 2 2 2 1 1 1 2 1 14 2 1 3 4 2 2 3 1 2 1 2 2 1 1 1 15 1 2 1 2 2 2 1 1 1 1 1 1 16 2 2 2 4 1 3 4 2 1 1 1 1 1 1 1 17 2 2 2 1 4 2 2 1 1 1 1 1 1 18 3 2 2 3 2 1 1 1 1 1 1 1 19 1 2 4 2 2 3 1 2 1 1 1 1 2 1 20 2 2 3 1 3 2 2 1 1 1 1 1 1 21 3 1 2 2 4 2 1 1 1 1 1 1 2 22 1 2 2 3 2 2 1 1 1 1 1 1 23 2 2 4 2 1 2 2 2 1 1 1 1 1 24 1 2 2 1 2 3 4 1 2 1 1 1 1 2 1 25 4 2 4 1 2 1 1 1 1 1 2 1 26 1 2 2 2 2 1 1 1 2 1 1 27 1 2 4 1 2 1 2 3 2 2 1 2 1 1 1 1 28 1 1 2 2 4 2 1 1 1 1 1 1 1 29 2 2 2 1 1 2 2 1 1 1 1 1 30 1 2 2 4 2 3 2 1 1 1 1 1 2 2 31 3 2 2 1 3 4 2 2 1 1 1 1 1 1 32 1 4 1 3 2 2 1 1 1 1 1 1 33 2 2 2 2 1 2 1 1 1 1 2 1 34 4 2 2 1 3 2 1 1 2 1 1 1 1 35 1 1 2 2 4 3 4 2 2 1 1 1 1 1 2 36 1 2 4 1 2 1 3 1 2 2 1 1 1 2 1 37 1 2 2 2 1 1 1 2 1 1 1 38 2 2 2 1 3 4 2 2 1 1 1 1 1 1 39 4 2 3 2 3 2 2 1 1 2 1 1 1 1 78 Babasabpatilfreepptmba.com 79. Competition Between PepsiCo and Coca Cola brands 40 4 1 2 2 1 3 1 2 1 1 1 2 1 2 41 1 2 2 2 4 2 1 1 1 1 1 1 2 42 1 2 4 2 1 3 2 2 1 1 1 1 1 1 43 2 2 2 4 2 1 2 1 1 1 1 1 1 44 1 2 2 1 3 4 2 1 2 1 1 2 1 1 45 2 2 1 1 2 2 1 1 1 1 2 1 46 1 2 4 2 3 2 1 1 1 1 1 1 1 47 2 2 1 2 2 1 1 1 1 1 2 48 3 1 2 4 2 2 3 1 1 1 2 1 1 1 1 49 2 2 2 1 3 4 1 2 1 1 1 1 2 1 50 1 2 2 4 1 3 1 1 1 1 1 1 1 1 Consumer Code SheetQ.No 2 4 5 6a 6b 7a 7b 8a 8Samples 1 2 3 4 5 1 2 3 4 5 6 1 2 3 4 5 6 1 2 3 4 5 1 2 3 4 5 1 1 1 1 1 4 2 2 4 2 3 2 79 Babasabpatilfreepptmba.com 80. Competition Between PepsiCo and Coca Cola brands 3 1 4 3 5 2 2 4 1 1 1 2 4 3 5 2 4 3 5 6 1 1 5 3 2 7 2 1 3 1 3 8 1 4 3 3 2 2 9 2 4 3 5 110 1 1 1 211 2 5 4 3 212 1 5 513 1 1 1 1 214 3 4 5 315 1 4 3 316 1 1 1 2 2 217 1 318 2 4 3 1 119 1 1 1 1 4 420 1 3 3 1 221 1 3 1 5 222 2 3 1 1 523 1 1 1 3 424 1 3 225 2 3 3 1 3 226 1 4 1 1 2 327 1 1 528 2 3 2 5 229 1 3 3 2 230 1 4 1 4 2 131 1 1 1 532 2 3 533 1 3 434 2 1 3 1 235 1 3 1 2 236 1 337 1 4 3 1 3 338 2 3 1 439 1 3 3 240 1 3 1 2 2 441 3 342 1 3 1 5 4 3 343 2 2 1 144 1 2 1 3 2 5 245 246 2 1 1 1 347 1 2 1 5 248 1 4 149 2 2 450 1 3 1 3 3 80 Babasabpatilfreepptmba.com 81. Competition Between PepsiCo and Coca Cola brands51 1 2 5 1 2 252 2 2 2 453 2 2 2 554 1 3 5 2 355 1 1 256 1 257 1 2 5 258 2 2 3 1 159 3 2 2 2 260 2 2 5 161 3 3 1 362 1 4 5 563 2 2 5 3 2 3 264 3 2 565 2 2 1 1 266 3 2 367 1 268 2 2 3 369 1 2 1 270 1 3 171 1 2 3 5 4 272 2 2 573 3 3 2 274 2 3 1 375 3 2 176 2 2 577 3 2 3 278 5 2 279 2 2 5 180 3 2 3 381 2 3 482 1 2 283 3 3 1 284 2 2 3 385 3 3 286 1 2 5 5 3 287 2 2 1 288 389 2 3 4 390 3 4 5 3 291 2 2 3 292 3 4 593 1 2 294 2 2 5 1 595 3 2 2 296 497 2 2 5 3 4 298 3 2 4 81 Babasabpatilfreepptmba.com 82. Competition Between PepsiCo and Coca Cola brands 99 2 2 100 3 2 2 2 QUESTIONNAIREDear Sir/Madam, 82 Babasabpatilfreepptmba.com 83. Competition Between PepsiCo and Coca Cola brandsName:Occupation1. Do you prefer soft drink? Yes No (if No go to Q 12)2. Which lemon flavor do you prefer among the following brands? 7up Sprite Others3. Reasons for not preferring (7 UP/Sprite)4. How often do you have a soft drink? Daily Twice a week Weekly Occasionally5. Who influenced you to prefer soft drink? Friends Colleagues Family members Advertisement Others6. Reasons behind preferring (7 up/Sprite)? Taste Availability Refresh ness Price Promotion Bottling/labeling7 Which mode of advertisement is more convincing and mind setting for the following brands? 7UP Sprite News paper/Magazine News paper/Magazine 83 Babasabpatilfreepptmba.com 84. Competition Between PepsiCo and Coca Cola brands TV Ads TV Ads Hoardings Hoardings Internet Internet Others Others8. a) Your opinion about Lemon flavor 7up brand Excellent good Moderate Poor Very poor8. b) Your opinion about Lemon flavor sprite brand Excellent good Moderate Poor Very poor9. what are the improvements required in following brands? 7UP Better taste/flavor Availability Price Promotional activity Packaging/labeling Sprite Better taste/flavor Availability Price Promotional activity Packaging/labeling10. Do you accept that the celebrities really influence you to buy the soft drink? ____Strongly ____ Agree _____ neither agree ____ Disagree ___ strongly Agree nor disagree Disagree11. How do you like to compare 7UP with Sprite (vice-versa?) 84 Babasabpatilfreepptmba.com 85. Competition Between PepsiCo and Coca Cola brands12. Other than soft drink what would you like to prefer? Tea Coffee Specify others Questionnaire 1) Name of Proprietor: 2) Location/ Area: 3) How many cases of soft drink sold per month a) 1-2 cases/week b) 2-4 cases/week c) 4-6 cases/week d) 6 and above 85 Babasabpatilfreepptmba.com 86. Competition Between PepsiCo and Coca Cola brands4) Which are the major lemon flavors preferred by the customer a) 7up b) sprite c) Limca d) Miranda Lemon5) What are the reasons for sale of particular brand 7up? 7 UP Sprite a) Availability a) Availability b) Consumer demand b) Consumer demand c) Price c) Price d) Advertisement d) Advertisement6) What are your further Expectations from lemon flavor 7 up brand? a) Improve taste b) better availability c) Increase in quality d) others7) What do you think about sale of 7 UP a) Reduced b) Not reduced Sprite a) Reduced b) Not reduced8) If reduced what are the reasons: 7 UP Sprite9) Does Company provides timely delivery of soft drink crates? 7 UP a) Yes b) No 86 Babasabpatilfreepptmba.com 87. Competition Between PepsiCo and Coca Cola brands Sprite a) Yes b) No 10) Are you satisfied with commission/margin provided by the company on Lemon flavor brands? 7 UP a) Yes b) No Sprite a) Yes b) No 11) Are you satisfied with credit facility and payment procedure provided by the company on Lemon flavor brands? 7 UP a) Yes b) No Sprite a) Yes b) No 12) Any SuggestionsBIBLIOGRAPHY: Marketing Management Philip Kotler Marketing Research Tull and Hawkins 87 Babasabpatilfreepptmba.com 88. Competition Between PepsiCo and Coca Cola brands Internet Websites: WWW. Pepsiworld.com www.google.co.in 88 Babasabpatilfreepptmba.com