1

MARKET PROFILEIn a waste country like India where temperature

crosses the mark of 450c during summer the demand of

soft drink is always high among consumer and to give

them taste and relief. The main companies engaged in

the manufacturing process of soft drink in India are

very few.

Although they both sell non-colas, which are growing in

volumes, the share of throat that matters the most is

the cola segment. This is the biggest battlefield with

the maximum firepower on display and here Pepsi has

come out tops. With a 511 percent market share. Pepsi

claims to be leader. In fact, Pepsi executives claim that

brand Pepsi on claims to be leader. In fact, Pepsi

executives claim that brand Pepsi on its own sells more

than Coke and Thums Up put together. Coke

executives hotly contest this, asserting that they still

reign supreme, but concede that brand Coke trails

brand Pepsi.

2

The main manufacturing is PEPSI, COCA-COLA,

CADBURY, CAMPA and others. Out these PEPSI, COCA-

COLA and CADBURY are three multinational companies

and have the 90% share of the total soft drinks market.

In other category which include CAMPA and local brand

have a share of @ 7%.

3

GROWTH IN SOFT DRINK INDUSTRY

AFTER THE ADVENT OF

MULTINATIONALS

The soft drink industries at this time are at the top level

both in canton as well as production. They are

experiencing the boom time level of business in

growth. Looking at the overall growth of soft drink

industries their future can very well be predicated and

foretold.

Basically the initial soft drink industry was Rs. 1,500

corers but now after the advent of Pepsi and Coke it

has gone up Rs. 2,600 cores i.e. around 1,500 lacks

crates which give it very smart growth of 58% and the

yearly growth expectation are 30% p.a. Other terms in

which growth can be measured are as fellows.

Pepsi has turned the neatest trick is in the market

place where, according to company executives, its

overall market share is 48 percent, which puts it within

4

sniffing distance of Coke, Coke executives, on their

part, claim a higher share of 59 percent.

5

(A) Some action plans of the two companies in India.

COMPANY INITIAL

INVESTMENT

PROPOSED

INVESTMENT

NEW PLANT

PROPOSED

COCA

COLA

250 CRORES 2,400

CRORES

NA

PEPSI 500 CRORES 3,00 CRORES 6

(B) Reaching Out to Millions of Population.

Pepsi after it was launched formulated a strategy that

would reach out to people in every corner of the

country. The franchise of Pepsi has made their brands

available to every body in all the possible corners of

the country. The advertising mainly at wall painting

and boards in villages and other small place. The

franchise location is at such place that they cover the

entire population.

6

(C) Advertising Expenses n

The total annual budget of VARUN BEVERAGES LIMITED

is Rs. crore (approximate) the company spends Rs. 7 to

8 on advertising per crate. The basic strategy of

advertising is signage, sin age, sales generating assets

[SGA], sponsoring special events and carrying out new

schemes, but for consumers are dealers, the impact of

advertising is visible in further part of study.

7

CATEGORISATION OF INDIAN SOFT DRINKS:

1) Aerated soft 2) Non aerated

Drink Drink

a) Frooti

b) Jumpin

8

9

PEPSI HISTORYIN 1898 Caleb Brahma, a New Bern, North Carolina

pharmacist, renames brads drink, carbonates soft

drink he has created to serve his drug store fountain

customers. The new name, Pepsi Cola are derived from

two of the principal in gradients, in gradients, pepsin

and Kola nuts. It was first used on August 28th.

1920 Brahma applies to the U.S. patent officer the

trademark for the Pepsi Cola.

1903 In keeping with his origin as a pharmacists

concoction, brahamas advertising pareses he’s drink

as “Exhilarating, invigorating, aids digestion.”

1905 A new logo appears, the first change from original

in 1898.

1906 the logo is redesigned and a new slogan is added

“The original pure food drink.” The trademark is

registered in Canada.

10

1970 The pepsi trad trademark is registered in Mexico.

1909 Automobile racing pioneer “Barney old filed”

becomes Pepsi’s first celebrity endoser when he

appears in Newspaper advertising describes Pepsi

Cola as “A dully drink….refreshing invigorating a

fine broker for a race, the theme delicious and

healthful appeasers, and well be used

intermittently over the next two decdades.”

1920 Pepsi appeals to consumer with, drink Pepsi-cola it

will satisfy you.

1932 The trademark was registered in Argentina.

1934 Pepsi begins selling a 12-ounce be bottle for five

cent, the same price charges by its competitiors for

fix sounces.

1939 A newspaper cartoon strip, Pepsiand Pete,

introductions the theme twice as much for a nickel

to

11

increase consumer awareness of Pepsi value

advantage.

1940 Pepsi cakes advertising history with the fir

advertising history jingle over broadcast nationwide

nickel. Nickel will eventually become a hit record

and will be translated into 55 languages.

1989 Pepsi lunges in to next decade by declaring Pepsi

lowers a generation ahead Pepsi Cola introduces an

exiting new flavor, wild chaerry Pepsi.

1990 Pepsi Cola sings the largest commercial trade

agreement in history with the Soviet Unio. Pepsi

sale in the U.S.S.R. is expected to double by the

end of the century. Pepsi is still. The choice of new

generation. As popular teen star Fred savage and

drink Cameron appearing Pepsi advertising. Diet

Pepsi vets Billy crystal and Michael J. foxes in

the eight ones campaign. Ray Charles joins the

12

pepsi

family by endolrsing diet Pepsi the siogan is you got

the right one bady Pepsi Cola unveils its new logo,

the eight in 03.

1991 Pepsi now in italic capital type face, is removed

from a smaller blue and red Pepsi swirl and runs

vertically up the package. Ray Charles modifies the

diet Pepsi Slogan to you got the right one baby uh

huh, Pepsi introduces the first market place. The

development marks the first time recycled plastics

used in direct contact with food ion packaging.

1992 Pepsi Cola Company implements the right side up

philosophy, where hew customer and front line

employees are at the top pf the organization, Pepsi

Cola launches the got have it theme which

suppleness the long-standing choice of a

generation. Mountaion dew introduces the popular

theme line. Get vertical.

13

1993 Brand Pepsi introduces new slogan, “Are Young

Have Fun, Drink Pepsi” Pepsi Cola profits surpass

and I billion. Pepsi introduces and innovative 24 can

multi pack the eube is faster to carry them the

traditional 24 Pack and it fits in the refrigerator.

1994 The introduction of freshness dating gives

consumer a new, easy to read “Best if used by-

date” on a; dote Pepsi product on North America.

Pepsi max the first no sugar Cola with maximum

Cola lest, is introduced in enrapt the firs Cola is

touted ass the diet Drink for non-diet drinkers.

Pepsi foods inte4rnational and Pepsi Cola.

International merge, creating the Pepsi co-foods

and beverages company.

1995 Pepsi launches a new award wining advertising

campaign, “Nothing else id a Pepsi” starless

and Pepsi them up with the North Ame4rica

14

coffee

Partnership and launches mazagran, a carbonated

coffee drink.

1996 In late 1997, Brenda retires as president and CEO of

Pepsi-Cola Phi8l Mariana joins Pepsi-Cola as

president and CEO.

1997 Pepsi-Cola is one hundred-year young the company

has planned many celebr4ations, including an

event for lovers in the brand, hometown of New

Bern. NC.

1998 Pepsi-Cola is changes its divertissement policy in

very country of operation local film, standard spots

personality were used form advertisement.

2000 Dil Mange More.

2002 Lunch New Pepsi Rs. 5/-

15

2003 Musham Garam Hai Pepsi Ke Leya Hum Besharam

Hai, Launch blue Pepsi.

16

PAST HISTORY OF COCA-COLA

YEAR DEVELOPMENT

1893-1894 Coca Cola Registered at the US Patent office.

1899 Bottled and sold by Missis Bippi Merchants.

1900 Coca Cola botting plant up in Chattanooga Tenessee and Atlanta.

1919 It was acquire by Robert woodruff.

1920 There come into existence around 1000 bottling plant.

1960 New aerate drink fanta appeared on the shelves of market.

1961 Lemon drink was launched.

1963 One calorie Cola launched (TAB)

1966 A low calorie Citrus drink was lauched.

17

1982 Coca-Cola Company launched diet Coca-Cola for health conscious drink.

1985 Lunched with a new formula to coke preparation having sweeter taste.

1991 Coke decided on more creative advertising for the worth 200 million (700n crore).

1992 Coke launched a Nestea lce Tea with the joint venture of Nestle.

1993 Coca Cola re-entered to India.

1997-98 80000 Coolers were provided at the outlets in India.

1999-2000 Pet Bottle of Lt. Was lunched.

2001 Mineral water ‘Kinsley’ Was launched.

2002, May Sun fill was launched.

2003 A coffee named Georgia is launched.

18

PRODUCT PROFILE OF PEPSI

The product range of the company has listed

brands:-

12. Pepsi Cola-200 ml@rs168-. 600 ml@rs 444/-.

My can 350@rs330,

13. Mirinda (Orange)- 300 ml@rs216. My can

350ml@rs 330,

14. Diet pepsi can 300ml@rs 330/- 600 ml@rs 444/-

Aquafina (Mineral water) – 1 litre@rs108.

15. Slice orangr-500 ml@rs 504/-, 1.25Ml@rs546/-

PRODUCT PROFILE OF COCA COLA

Thums up - 300 ml 206, 200ml-161Coca cola - 300 ml 206, 200ml-161Limca - 300 ml 206, 200ml-161Sprite - 300 ml 206, 200ml-161Maaza - 250 ml 214, 600ml-552 – 22 less in scheme

Water Kinley – 118

2 Ltr-455 – 437 without scheme

600 Ml – 488 – 470 without scheme

19

1.25 Maaza – 436

Maaza Tetra pack -250Ml-241 – 3Pack Free

PRODUCT PROFILE OF THE COMPANY

There are ten brands of Coca-Cola named as following:

COKE

THUMS UP

LIMCA

FANTA

MAAZA

KINLEY SODA

SPRITE

KINLEY PACKAGED DRINKING WATTER

KINLEY SODA

SUNFILL

GEORGIA COFFEE

These ten brands differ in taste; flavors are also in

their colors:

20

1. COKE: Coke is considered to be cola drinks. It

is generally

Preferred by all sections of consumer this is a

cash cow brand for

The company in terms of sales revenue

2. THUMPS UP: Thumps up is also considered to

be a cola drink. It is hard comparison to coke. It

is preferred by all sections of consumers but

specially to teenagers. It is big source of

company to cash it publicity

3. LIMCA: Limca is considered to be lemony in

taste and comes under the category of cloudy

lemon because of its color, which is similar to

that of clouds. It has to yield good sales

revenue. Children and women generally prefer

it.

4. FANTA : Fanta is coming in orange flavors. It is

preferred by children and women.

21

5. MAAZA/MAAZA TETRA PACK: Maaza is

considered to be juicy soft drink

because it contains mango pulp. This soft

drink is preferred by different segments

of

consumers. Maaza tewtra pack is a pack which

can be carried easily

6. SPRITE : In order to compete with 7UP a brand

of Pepsi in the area of plain lemon this product

is launched by coca cola.

7. KINLEY PACKAGED DRINKING WATER when

it was launched it was marketed as mineral

water but due to Government regulation it is

named as packaged drinking water.

8. KINLEY SODA : This is a soda drink. It has

not and no flavors. It is generally used with

alcohol and used by adults.

9. SUNFILL: It is a refreshment cum flavored

powdered drink. It comes in different packs viz.

single serve, multi serve and family pack.

22

10. GEORGIA: It is coffee launched in this year and

in the four metropolitan cities only.

23

THE COCA COLA BUSINESS IN INDIA

FACT FACTS

India population: 1.1 billion History: coca-cola returned to India in

October 1993, when after a 16 year absence it was launched in Agra home of the famous Taj Mahal.

Share of sales: Coca-cola is a leading beverage company in India with an estimated 1. 5 percent share of the market for non-alcoholic ready-to-drink beverages and an estimated 1.4 percent share of the market for all commercial beverages. The company leads the flavored carbonated commercial beverages. The company leads the flavoured carbonated soft drink market with a 58.4 percent share of sales.

Volume : unit case volume increased 14 percent in 2000, 10 percent in 2001.

Annual per capita consumption : _4 (consumption based on 8 –ounce serving

System Employment : approximately 13,000 people

System investment : More then US$900 million over the last seven years.

24

COCA COLA AND QUALITY:

28th January 1997 saw the launch of QA 2000 in India at

a novel and interesting conferences at LEE is

Kempansaki, Mumbai attended by over 150 delegates

from bottling operation of a Coca cola system in India.

The speakers put the three quality principle QA 2000,

to ensure that Coca Cola Company.

Is the symbol of quality around the would

Delivers continued customers and consumers

satisfaction.

Operated as a responsible corporate citizen.

Peter Add man, director technical, Coca India, unveiled

the all-new Equation.

Q=SMC2

The explanation is:

25

Quality=satisfy More customers and sell more Coca

Cola products How can improvement of qualities in all

areas help Coca cola sell more products.

In the market place, all selling activities concentrate on

target, the consumer’s preference. The consumer,

while making a decision on whether or not to buy

Coke’s product gets influence by he company image.

26

COMPETITIVE BRANDS

The brands, which are in direct competition with, are:-

FKAVIOUR PEPSI CO-BRAND BRAND(COMPANY)

COLA PEPSI PEPSI AHA THUMS-UP (COCA COLA) COKE (COCA COLA) CAMPA COLA (CAMPA)

LEMON MIRINDA LEMON LICA (COC A COLA)MANGO SLICE MAZAA

(COCACOLA)ORANGE MIRINDA ORANGE

SLICE ORANGE MIRINDA APPLLE

FANTA (COCA COLA) CAMPA (CADBURY)

SWEET-SIDA 7 UP CANADA DRY (CADBURY)

SODA EVERESS-SODA TEEM SODA

BESLERI-SODA (BISLERI)

MINERAL WATER

AQUA-FINA KINLEY (COCACOLA)

27

Coke v/s Pepsi-ProductAs seen above bo th the compan ies Coke and Peps i have a number o f p roduc ts . Many o f these p roduc ts a re innovat ions bu t t here a re a l so many produc ts wh ich a re b rough t ou t j us t as a compet i t i ve p roduc t fo r the o ther compan ies . Some o f these p roduc ts tha t a re b rough t i n the marke t by bo th the compan ies to compete aga ins t each o ther a re as fo l l ows :

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.

Fu l l Th ro t t l e i s an energy d r ink b rand produced by

The Coca-Co la Company . I t debu ted in la te 2004 in

Nor th Amer ica .

AMP is an energy d r ink p roduced and d is t r i bu ted by Peps iCo under the Mounta in

Dew so f t d r ink b rand.

Vau l t i s a carbonated beverage tha t was re leased by The Coca-Co la Company

in June 2005 .

Mounta in Dew MDX is an energy d r ink manu fac tu red and d is t r i bu ted by Peps iCo

under the Moun ta in Dew b rand . I t was in t roduced in

2005 .

28

Powerade is a spor ts d r ink by The Coca-Co la Company and cu r ren t l y number two in

the spor t s d r ink marke t wor ldwide.

Gato rade is a non-carbona ted spor t s d r ink

marketed by Quaker Oa ts Company , a d i v is ion o f

Peps iCo. Or ig ina l l y made fo r a th le tes , i t i s now o f ten

consumed as a snack beverage.

Spr i t e i s a c lea r , lemon- l ime f l avored , non-caf fe ina ted

so f t d r ink , p roduced by the Coca-Cola Company . I t was

in t roduced to the Un i ted S ta tes in 1961 .

7 Up is a brand of a lemon-lime flavored soft drink.

M inu te Ma id i s a p roduc t l i ne o f beverages , usua l l y

assoc ia ted w i th orange ju i ce , bu t now ex tends to so f t d r inks o f many k inds . The Minu te Maid company

is now owned by Coca-Co la , and i s t he wor ld ' s la rges t

marketer o f f ru i t ju i ces and d r inks . I t i s headquar te red

in Hous ton , Texas .

Trop icana Produc ts i s an Amer ican company based in

Braden ton , F lo r ida , USA, wh ich i s one o f the wor ld ' s

la rges t p roducers and marketers o f o range ju ice . I t

has been owned by Peps iCo, Inc . s ince 1998.

29

Ki n ley i s a b r and o f s t i l l o r c a rbona t ed w a te r owne d by The Coc a -Co la Com pany .

Aquafina is a non-carbonated bottled water produced by PepsiCo.

Aqua r iu s i s a mi ne ra l s po r t s d r ink ma nufac t u r ed by The Coca -Co l a Company . I t wa s

f i r s t i n t roduced i n 1983 .

Al l S po r t w as a s po r t s d r ink . I t i s p roduce d by Pe ps i Co .

F an ta i s a so f t d r ink b r and owne d by The Coc a -Co la

Company . I t i s p roduced and d i s t r i bu t ed by The Coca -Co la

Company ' s bo t t l e r s .

Mi r inda i s a b r and o f s o f t d r ink . M i r inda i s owne d by

P eps i Co .

S p r i t e I c e w as t he f i r s t f l avo r ex t e ns i on fo r The Coca -Co la Company ' s Sp r i t e b r a nd so f t

d r ink .

Pepsi Blue is a soft drink made by PepsiCo and launched in mid-2002.

30

Coca -Co l a B lak i s a co f f ee -f l avou re d so f t d r ink

in t roduc ed by Coca -Co l a i n 2006 .

P eps i Cappucc ino i s a cappuc c ino - f l a vo red

ca rbona ted s o f t d r ink p roduc ed by P eps i co .

Ma aza i s a Coca -Co l a f ru i t d r ink b r and m arke t ed in Ind i a

and Bang l ades h .

S l i ce i s a l i ne o f f ru i t - f l avo red so f t d r inks manufa c tu r ed by P eps i Co and in t roduced i n

1984 .

L im ca i s a l emon a nd l im e f l avou re d ca rbona t ed s o f t

d r ink ma de in Ind i a by Coca -co l a .

Tee m w as a l em on- l im e-f l avo re d so f t d r ink p roduced by The P eps i -Co l a Compa ny .

31

MARKETING CHANNEL

(FOR RETALING)

Must produces do not sell their goods directly to the

final users, between them stands a set of

intermediaries performing a variety of function. These

intermediaries constitute a marketing channel. They

are also called a trade channel or distribution channel.

Marketing channels can thus be described as a set of

independent organization involved in the process of

marketing a key externals resource such as

manufacturing, research, engineering and filed sales

personnel and facilities. It represents a significant

corporate commitment to large number of independent

companies whose business is distribution and to the

particular market they serve, it also practices that

constitute the basic fabric on which woven an

extensive set of ling-term relationship.

32

A marketing channel performs the work of moving

goods from producer to consumer. It overcomes the

place and possession gap that separates goods and

services from those who need or want members of the

marketing channel perform a number of key functions.

1. The gather information about potential and current customers, competitors and other actor and forces in the marketing environment.

2. The develop and disseminate persuasive communication to stimulate purchasing.

3. They reach agreement on and other so that transfer of ownership of possession can be affected.

4. They place orders with manufactures.5. They acquire the funds to finance inventors at

deferent level in the marketing channel.6. They assume risk connected with carrying out

channel work.7. They provide for the success storage and

movement of physical products.8. They provide the buyers payments of their bills

through banks and movement of physical products.

9. They oversee actual transfer ownership form one

organization or person to another.

33

NUMBER OF MARKETING CHANNELS

1. Direct Marketing Channel- A marketing channel

that has no intermediaries levels.

2. Indirect Marketing channel-Channels containing

one or more intermediaries levels.

CUSTOMERS MARKETING CHANNELS

Channel 1 Manufacturer…………………Consumer Channel 2 Manufacturer…………………Consumer

Channel 3 Manufacturers…………………Consumer

Channel 4 Manufacturer ….Whole…sellers….Jobber. retailer….Consumer

34

CHANNEL DYNAMICS Distribution channel do not stand still, New whole

selling and retailing institution emerge and new

channel systems evolve. These are four types of

marketing channels.

1- Conventional Distribution Channel:

A channel consisting one or more independent

producer (S) wholesale (S) & Retailer (S), Each

is a separate business seeking to maximize its

own profits even seeking to maximize its won

profits even if this goal reduces profit for the

system as a whole. No. of channel member has

complete or substantial control over the other

members.

2- Vertical Marketing Channel:

This is a most recent Marketing channel. A

distribution channel system as which producers,

wholesalers and retailers act as unified

systems. One channel member, the channel

35

captain owns the other of franchises them or

has so much

36

power that they all co-operate. The channel

captain can be the producer, the wholesaler, or

the retailer.

3- Horizontal marketing Channel :

A distribution Channel System in which two or

more unrelated companies put together or

programmers to exploit an immerging

marketing opportunity.

4- Multi-Channel Marketing :

In the past, many companies sold single market

through a single Channel. Multi channel

Marketing occurs when a single firm uses two

or more marketing channels to reach one more

customer segments.

37

RETAILING

Retailing includes all the involved selling goods or

services directly to final consumers for personal non-

business use. A retailer store is any business enterprise

whose sales comes primarily form retailing.

Retailings are the last but not least in the marketing

channel through which the eventual transfer to

ownership of goods takes place. The use of retailer

boils to their superior efficiency in making goods widely

available and accessible to target markets. In cases the

retailers perform the important functions mentioned as

under:-

1- Information

2- Promotion

3- Negotiation

4- Ordering

5- Financing

6- Risk taking

7- Physical possession

38

8- Payment

9- Title

The Major retailer types are following:

1- Specialty Store: They sell narrows products

line with deep assortment.

2- Department store : They sell several product

the line with each line operated as separate

department managed by specialist buyers or

merchandisers.

3- Super Market: They are relatively large low

cost, low margin, high volume self service

operation designed to serve total needs for

food, laundry and household maintenance

product.

4- Convenience Store: These are relatively small

store located near residential areas, Open long,

hours seven days a week and carrying an

united lines of Hugh turn over convenience

products at Slightly higher prices.

39

5- Discount Store: These Sell standard

merchandise at lower prices with lower margins

and higher volumes.

6- Off Price Retailer: These sell the merchandise

are bought at less than regular wholesale prices

and sold at less than retail. These may be of 3

types, mentioned as under:

(a) Factory outlets

(b) Independent off-price retailers

(c) Warehouse clubs (Wholesale Clubs)

40

41

THEORETICAL INPUT PROMOTIONAL ACTIVITY

(FOR RETAILERS)The science of marketing has identified the four P’s of

marketing i.e. (i) Products, (ii) Place (iii) Price and (iv)

Promotion. Every product including soft drink after

satisfies human needs by quenching their thirst. It is

made available for consuming public through a Channel

of distribution i.e. distributors and retail outlets. This

covers the place aspect. Each product is priced in such

a way that it of profit for the maker. Price is also

determined keeping in mind the competitors price and

the demand of the product.

The promotion of a product is done to stimulate

demand is such a way, as to increase sales, better

image and increase market share. The sales promotion

of soft-drink and water products include advertising,

personal selling, sales promotion, publicity and public

relation.

42

SALES PROMOTION METHODS

Marketers use many methods of sales promotion.

Depending upon the activity level of their sponsors

their sponsors their variety seems very large. Following

are some the most commonly used methods of sales

promotion.

As noted above, the accomplishments of the descried

promotion and marketing objective ultimately depends

on the extent of the desired response sieved from

methods from methods which are build around these

three target groups. Further, terms of the impact

desired, the variety of sale promotion schemes offered

are opted into in to two categories. One aimed at

producing schemes offered are grouped to two

categories. One, aimed at producing immediate impact,

and the other played impact i.e. carrying on the impact

over a period of time before receiving are full benefit

on the schemes. Price discounts, free samples, where

as coupons, ding stamps, and contests are example, of

delayed impact category of sales emotion schemes.

43

Promotion Activities consist of various means of

communicating persuasively with target audience. The

important methods are:-

(a) Advertising: Where an identified sponsor

pays media (Such as T.V.) to transmit

message to target consumer.

(b) Personal Selling: Where sales

representative employed by the firm

engage interpersonal communication with

individuals consumer an prospective

customers.

(c) Sales Promotion: Where the marketer

utilize displays, demonstrations,

premiums, contests, contests or similar

device.

(d) Publicity and Public Relation: Help to

44

stimulate supportive new items about the firm

and its product that have greater credibility

with public than advertising.

All these methods of Promotional Activities constitute

the promotion Mix, Sales promotion is the only method

that makes use of incentives to complete the pull

promotions strategy of motivating the force, the

dealers and the consumers in transacting a sale.

According to “American Marketing Association”, Sale

promotion refers to hose activities other personal

selling advertising and publicity, that stimulate

consumer parching and dealer effusiveness such as

display, shows and exhibition, demonstrations and

various other non-recurrent selling efforts not in

ordinary.

“Sales Promotion” is also known by the name of “Extra

Purchase Value E.P.V.).”

45

SALES PROMOTIONS : MEANING & OBJECTIVES

S. No.

Sales Promotions

Meaning Objectives

1. Price-off

offer

Offering product at lower

that the normal price.

To

encourage

immediate

sales, attract

non-users,

induce new

product trial,

counter

completion,

inventory

build upat

the trade

level.

2. Quantity-

of

Offering more quantity of

To

46

offers the same product at no

extra cost or with a very

nominal increase ion the

price of the price of the

larger quantity packs.

encourage

more/longer

duration

consumption,

higher or

excess

quantity

movement

from the

factory, trade

up consumer

for higher

quantity pack

size.

3 Coupons When the consumer is

entitled to redeem

specific standard

certificate for a

To

encourage

product trial

47

product/article free or in

part payment. Coupons

are used by both the

manufacture and the

dealers for sales

promotion. Coupons may

be distributed by mail,

by media

advertisements, door-to-

door inside product

package or by dealers on

purchase.

build loyalty,

trade up

regular users

stimulate

repurchase

rate, solicit

equities.

4 Trading

stamps

Organized by trading

stamp companies or

large retailers. Trading

stamps are a kind of

discount coupons offered

to consumers linked with

the

To

encourage

consumer

loyalty to

certain retail

stores.

48

quantum of their

purchase. On enough

accumulation for various

kinds of merchandise.

5. Consumer

contests

and lucky

draws

When individuals are

invited to complete on

the basis of creative

skills. The letter is based

on the change of luck

factor.

To create

brand

awareness

and stimulate

interest in

the brand

acquaint

consumers

with brand

usage and

benefits build

traffic at the

store.

49

Precipitate

brand usage

and promote

advertising

theme of the

company.

6 Dealer

stock

display

contests

It is type of point-of

purchase advertising,

which uses the show

windows of the dealers

for providing exposure to

the sponsored products.

Dealers participating

enthusiastically and

creatively are awarded.

To provide

product

exposure at

the point of

purchase

generate

traffic at the

store infuse

enthusiasm

among

dealers.

7 Dealer

sales

Which participating To increase

50

consents Dealers invited to

complete in terms of the

sales performance

sales by

dealers

loyalty and

motivate

dealers staff

to sell more.

8. Discounts Other than normal trade

and cash discounts

To push

more sales

to trade

early cash

recovery

9 Trade

allowances

These are temporary

price

reductions/reimbursemen

t of expenses incurred by

dealers-full or in part its

varied types are as under

10 (a) trade

or buying

Offer of price reduction or

purchase of specified

To load the

trade

51

allowance. quantity of a product.

(b) Buy

back

allowance.

A secondary incentive,

which offers a curtains

sum of money to trade

for each additional unit

bough over and above

the deal.

Repurchase

(c) Count

and recount

When a specific amount

of money is offered

after ascertaining the

number of unit sold

during a specified

period.

To move

stocks faster

reward on

sale only.

(d)

Merchandis

e (display)

allowance

An allowance to trade

for providing desired

sales promotion and

product displays.

52

Advertising strategies and schemes to promote

the sales:

The importance of promotion can’t be

overlooked in the filed of marketing.

Pepsi seems to be out spending coca-cola when

it comes to the wall painting and sign boards with

the blue colour dominating the major places of the

city.

Advertising materials such as Glow sings, Sign

boards, wall painting, Wall clocks, Racks, Fridge are

some S.G.A’s where Pepsi is spending a lot. So, I

would like to suggest that company have to increase

the expenses on advertising materials to improve

their sales.

VISIBILITY is very important factor, there is a

famous saying fin Hindi; “JO DIKTA HAI WHO

BIKTA HAI”

We can really have a type of project which was

recently taken up by CABURY’S the IDEA Behind the

project was to make presence of Cadbury’s chocolate

53

being felt in the city, they planned to paint the whole

city with

54

their Glow sign boards wall paintings and Visi-coolers

with the help of their distributors. Their vision was to

paint the whole city Blue. The really increased the

market share of their product with the increase in

their sales.

Some owners said that was only rely on the

schemes provided by the company, if they get good

schemes they get good schemes they can push the

sales of any brand. So, I would like to suggest that

company must ensure to start new schemes and

create awareness for the product to improve the

sales.

Salesman at the delivery van tends to be

inconsistent on certain matters like the concept of

scheme & broken bottles. When dealing with the

shop and eatery owners some salesman supply the

bottles according to the scheme & exchange the

bottles, while some do not.

55

ADVANTAGES OF SALES PROMOTION

1. Sales Promotion makes an immediate effect on

sales.

2. It stimulates positive attitude towards the

products.

3. It gives an extra incentive to the

Retailers/Consumers to made a new purchase.

4. Measurement of the effectiveness of sales

promotion is easier against the offer promotional

methods.

5. It gives extra incentive to take immediate

action now rather than later.

6. It has flexibility and can be used at any stage of

a new product introduction. Sales promotions are

very effective in this regard.

7. Products are becoming standardized and

similar and so need increased support of non-price

factors of which sales promotion is an important one.

56

LIMITATIONS OF SALES PROMOTION

1. Sales promotion has temporary and short life

span.

Sales promotion alone can’t build up brand loyalty.

2. Sales promotions are only supplement, devices

to supplement selling effort of other promotions

tools.

3. They bear not recurring in their use. They have

seldom reuse value.

4. Too much sales promotion may affect adversely

the brand image suggesting its lack of popularity or

overstocking by a company.

5. Advertising agencies accord law status to sales

promotion so that they may be trained for more

creative jobs.

6. Sales promotion is ineffective in lack of proper

planning and Research for Sales Promotion.

57

58

59

42%

22%

10%5.50%

15%

5%

0%5%

10%15%20%25%30%35%

40%45%

PepsiCola

MoundenDew

MirindaOrnage

Slice Nimbooz 7 UP

Series1

42%

22%

12%15.00%

5% 4%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

CCS LIMCA 7 UP TUP MAAZA FANTA

Series1

60

76.75

22.25

66.66

33.34

80

20

0

10

20

30

40

50

60

70

80

Wall Painings Glow SingSinage Aid

Pop

Sinage Aid

% Share of Signage Aid of Pepsi and Coke

Pepsi

Coke

68.42

31.58

55.18

44.82

60

40 40

60

0

10

20

30

40

50

60

70

Refrigerater Visi Cooler

Chilling Aid

% Share of Chilling Aid of Pepsi and Coke

Pepsi

Coke

61

% Share of Pepsi and Coke as a whole in Abu Lane

68%

32%

Pepsi Coke

62

73.33

27.77

50 50

33.33

66.66

0

10

20

30

40

50

60

70

80

Wall Painings Glow SingSinage Aid

Pop

Sinage Aid

% Share of Signage Aid of Pepsi and Coke

Series1

Series2

72.2

22.8

33.34

66.6661.36

38.64 40

60

0

10

20

30

40

50

60

70

80

Refrigerater Visi Cooler

Chilling Aid

% Share of Chilling Aid of Pepsi and Coke

Series1

Series2

63

% Share of Pepsi and Coke

55%

45%

Pepsi Coke

64

90

9.09

100

0 0 00

102030405060708090

100

Wall Painings Glow SingSinage Aid

Pop

Sinage Aid

% Share of Signage Aid Pepsi and Coke

Pepsi

Coke

62.75

37.2545.4

54.55

15.38

84.6

0

100

0

10

20

30

40

50

60

70

80

90

100

Refrigerater Visi Cooler

Chilling Aid

% Share of Chilling Aid of Pepsi and Coke

Pepsi

Coke

65

% Share of Pepsi and Coke

51%

49%

Pepsi Coke

66

56.82

43.18

53.84

46.1643.5

56.5

0

10

20

30

40

50

60

Wall Painings Glow SingSinage Aid

Pop

Sinage Aid

% Share of Signage Aid of Pepsi and Coke

Pepsi

Coke

47.4252.57

64.28

35.72

57.71

47.29 50 50

0

10

20

30

40

50

60

70

Refrigerater Refrigerater Visi Cooler Visi Cooler

Chilling Aid

% Share ofr Chilling Aid of Pepsi and Coke

Pepsi

Coke

67

% Share of Pepsi and Coke

33%

67%

Pepsi Coke

68

% Share of Signage Aid of Pepsi and Coke

50.5455.88

33.3440.46

4.12 6.66

0

10

20

30

40

50

60

Wall Painings Glow Sing SinageAid

Pop

Sinage Aid

Pepsi Coke

34.78

65.32

56.25

42.75

58.63

41.37

0 00

10

20

30

40

50

60

70

Refrigerater Visi Cooler

Chilling Aid

% Share of Chilling Aid of Pepsi and Coke

Pepsi

Coke

69

% Share of Pepsi and Coke

37%

63%

Pepsi Coke

70

CONCLUSION AND RECOMMENDATION

Through the survey undertaken we came to following

conclusion alone with recommendation.

CONSUMER SURVEY

1. The packaging patterns among the pet, glass,

Tetra Tin preferred most by consumer is glass

and Tin. Glass, because it least in cost and tin,

because it can be cared away for mobile

purpose.

2. People refer soft drink mainly to quench their

thirst, which was concluded from the survey.

3. It was also found that tea/coffee is preferred

highly be consumers when they don’t consume

any soft drink. Beer also constitutes substantial

portion in it.

It was found by survey that people like to see

their idol personalities in advertisements.

Against coke/because only the matinee idols &

cricket stars.

71

4. Through survey we come to know that “Pepsi”

is not tussling with “coke” alone but its major

competitor is “Thumps Up” is must better than

“Pepsi”.

5. It was found that “Pepsi” and “coke” both have

list involved in local events and local functions.

That also makes major impact behavior of

people.

6. It was also seen that people find price per

bottle of “Pepsi” and “coke” very high. Which

makes lowers income groups to move towards

local lemon soda.

7. And finally it was found that advertisement of

“Pepsi” had deep impact on people. Because

more than 80% of citizens were that “Pepsi” is

going to launch new product likes NIMBOOZ,

vaninila, and etc.

DEALER SURVEY

It was seen through survey that packaging

which is preferred most dealer is pet, because

72

it is to handle and often selling it they don’t

have

any headache of realizing it from the consumer

as in case with the glass bottle.

It was also found that the schemes that are

brought up in marketed by “Pepsi and coke”

after very couple of day is not making any net

effect on the sale of cola. Whereas one

cannibalizing others market only.

Through survey it was come to know that

500 ml, 300 ml, & 200 ml of ‘limca’ is better

sold than “7up, Mirinda lemon” mostly in all

area of Gurgaon.

The sale in age wise section, it was found

that 200 ml. Is sold in all age groups same

frequency but 500 ml. is sold mostly in 13 to 45

years of are group where “can” is sold only in

high class society only, 300 ml. Old mostly 16

to 25 year of group. Finally 1.5 liter and 1 liter

are use only for party, functions 7 family

purpose.

73

After going through stock and sales of dealer

we come to know that dealers keep stock of

“Pepsi” and “coke” almost in same proportion,

but “Pepsi” is more than’ coke” but it entirely

depends upon dealers to sell “Pepsi or “coke”.

74

RECOMMENDATIONS

Home delivery of all the brands in all sizes instead

of just 1 liters bottle.

Credit facility for retailer providing home facility.

Extra cost margin for providing chilled soft drink,

should given.

Promotional scheme for consumers.

Distribute adv. Materials, free gift like key chains,

caps, t-shirts, wall clocks, wristwatch with symbol

of all the brands of company.

Give stand, umbrella, posters, sign glow etc. to

outliers.

Proper feedback system should be developed by

ensuring regular visits and checks at random at

the various outlets.

Claim should be given informed in advance about

the schemes to be launched.

75

The claims of the consumer schemes should

properly be handled.

Company should try to give some credit facility to

the distributors so that they get motivated.

Advertisements of all the brands should be made

instead of only COCA-COLA.

76

SWOT ANALYSIS

In a most competitive market like some rinks. One has

tuff very strategic against all the business activities of

the rivals. A constant of the market situations and

fitness of self is a must to keep in line with the

competition. Especially in the soft drink market, it has

the rivalry, which is more them any other industry.

Where each player tricks to maximize its market share

on the cost of others. Brand positioning is one area

where there is very crucial battle in Indian of soft drink

market. One of the major tools of this battle is of

course BRAND POSTITIONING. To win situation the

Pepsi must analyze the external environment to

identify there acts and opportunities adopt to the

strategic fit. For this, internal strengths and weakness

must be analyzed.

77

STRENGTHS

1. Pepsi is most popular brand in India. 2. Pepsi is enjoying maximum market share in the

Indian market. 3. Punch line “Yeh Dil Maange More” is the

most effective then any other punch line ever brought.

4. Punch line “Yeh Payass Hai Badi” is the most effective punch line in 2004.

5. Complain of can leakages is which coke and not with, Pepsi.

6. Pepsi is attracting new generation segment due to availability of fountains. This is being licked by coke where fountain machines overall in comparison to Pepsi are less. Especially Ghaziabad.

7. The pet bottles of Pepsi are suitable for household use, whereas coke bottles are not.

8. The inclination of new generation is towards Pepsi due to blue colour concept adopted by the company.

9. Advertising of Pepsi is much more than aggressive them coke.

10. Taste of Pepsi is better than coke.

78

WEAKNESS

1. The shape of bottle of coke is much more

attractive than Pepsi.

2. The writing style of coke name is more

attractive than Pepsi.

3. The 200ml. 300ml. 500ml. off thmps up are sold

in all area in ghaziabad than Pepsi.

4. Bottle crown quality of Pepsi is good, due to its

workability as there are complaints of rusting in

and around crown of Pepsi this more common

during the rainy season.

5. A Pepsi fountain machine is not satisfactory

“Ghaziabad”.

79

OPPORTUNITY

1- The market growth rate is very high in fact

30% to 385 per annum.

2- The punch line of Pepsi speaks most highly

e.g., Pepsi is at the top of the mind among

consumer.

3- The launching of Mountain Dew, Slice of

Pepsi has seen the overall growth in cola segment.

4- The strategy to lower down the prices by

Pepsi against the 200 ml of coke had made

substantial difference in cola market.

5- Coke fountain machines overall in

comparison to Pepsi are less. Especially in

Ghaziabad there is no fountain machine of coke

available, which help Pepsi in attracting new

generation segment.

6- Aggressive helped in increasing their

market share.

7- The launching of Pepsi NIMBOOZ will make

a considerable difference in market share.

80

81

THREATS

1- The threat of risk of potential entrants due to

CADBURRY’S further entry is very considerable.

2- Local lemon soda is also a big threat to Pepsi

as these bottles exhaust most of the buying power

of lower class segment.

3- The threats of seasonal drinks like fruit juice

are also considerable, as at time of peak season,

the rates are Rs.5/- per glass.

4- The growing market may be captured with

great number of package in turn it threats to

Pepsi, as the market demand is very

heterogeneous.

82

OBJECTIVE OF THE RESEARCH

To study the Pepsi & Coke

To do the comparative market mix

analysis of Pepsi & Coke.

To find out the potential customers or

the target customers.

To find out various strategies used by

Pepsi & Coke to capture more and more market

share.

To known about the changing trends of

both companies.

83

SCOPE OF THE RESEARCH

Our research objective is just to identify the Market

Potential. For fulfillment of this object we select the

area of Ghaziabad City. In Ghaziabad city we select

some specific places like.

Raj nagar

Vijay nagar

Shashtri nagar

kavi nagar

dasna

84

IMPORTANCE

As a part of our course curriculum we have assign a

dissertation report (“Comparative Market Mix Analysis

of Pepsi & Coke”)

We have study about the comparative study of Pepsi &

Coke. This research work help us to understand the

importance the group efforts and also help us to

understand various strategy used by the company to

attain their objective and defeat their competitors.

85

RESEARCH METHODOLOGY

INTRODUCTION

Marketing research is a process of collecting and

analyzing marketing information and ultimately to

arrive at certain conclusion. PARLE Beverages Pvt. Ltd.

& Hindustan Coca Cola Ltd., is a concern, which is

marketing products having different brands. Thus a

survey method of marketing research is essentially

exploratory in nature. Thus I opted for questionnaire

method for conducting survey about the marketing of

Pepsi in Ghaziabad region.

86

IMPORTANCE OF MARKETING RESEARCH

Marketing research has its important not only for

consumer market but also it survey effectively to the

producer of goods and services. The use of marketing

research in consumer market may be explained on the

basis of following services rendered by it.

1. It increases the position of a company in

specified industry.

2. It indicated the present future trend of industry

and point out how the companies’ affairs are

being turned up.

3. It helps in development and introduction of New

Product.

87

DATA COLLECTION METHOD

Since the study is exploratory in nature, a personal

interview with each retailer with the aid of

questionnaire to be used in Ghaziabad region to

facilitate tabulation and analysis as data were designed

for segment retailers.

Questionnaire should be such that the respondent

would have free hand in responding and let the

designed information filter through lengthy discussion.

Both open-indeed question and closed ended question

is selected for the above purpose.

FILED WORK : The questionnaire prepared

by researcher and the researcher himself also filled

these whole interviewing the retailers. For interview

of retailer as for as those languages were used

which they can understand clearly such as Hindi &

English.

88

RESEARCH DESIGN : This is a compressive matter

plan of the study undertaken, giving a general

statement of the method used and procedure followed.

Since the study is both exploratory and descriptive in

nature, a personal interview with each retailer with the

help of questionnaire was selected to obtain data. The

questionnaire to be used Ghaziabad Region.

SAMPLING UNIT:

Retailers

Wholesaler

SAMPLING DESIGN: Sample Size approx 270

respondents.

DATA SOURCE: The various source of information

broadly divided in two categories.

1. PRIMARY SOURCE: Source from where first hand

information and gathered directly are called

primary source and thus information collected is

called PRIMARY DATA.

89

In case of above study the primary source was

RETAILER.

2. SECONDARY SOURCE: The source of information

already gathered for some other purpose are

available, is called secondary data, with regard to

my study secondary services of my study where

records of the company, magazines and papers.

90

DATA COLLECTION METHOD

The following methods are widely used for the

collection of data:-

1. Survey Method.

2. Observation Method.

In the above-mentioned method, survey and

observation method were mainly used for the

undertaken topic. Survey method was mostly used for

collection for data to personal interview with the help

of a framed questionnaire in the case of retailer.

As far as retailer are concerned survey, observation

method was also used get some data by watching the

retailer.

Research Instrument: In this regard an instrument

refers to the means by which research is conducted. In

the given study means were questionnaire.

91

In this case of the entire respondent i.e. retailers were

used. It contains both open and closed type

(dichotomous multiple type choice question). A sample

of blank questionnaire of retailers of retailers list with

area is attached with this report in the appendix.

SAMPLING PLAN: The sample was chosen was

judgmental and convenience basis sample size of

approx 270 respondents were taken the sampling unit

was retailers of shashtri nagar, raj nagar, kavi

nagar,dasna govindpuram. The sample consisted of

retailers. Spread over the entire area of distributors.

DATA ANALYSIS & INTERPRETATION : For analysis

& interpretation of data the researcher used:-

Percentage (%) = Number of Respondents x 100Total No. of Respondents.

92

EXECUTIVE SUMMARY

I would like to extend my thanks to the esteemed

organization Varun Beverages Ltd. And its staff

members for giving me an opportunity to carry on

market research on a “Market Share of Pepsi lime and

its Competitor Brand” as competition intensify and

brand proliferate, consumers different between brand

in their own way, to fine out market share is a

conscious attempt on the part of the marketer to

accentuate. This natural tendency and in the process,

impart a distinct identify to find share is achieved

reflects marketer efforts or potentiality. A marketer,

through is diverse and ordinate actions, tries to capture

the market. After knowing share we also come to

known about product design, packaging, method of

distributing etc. and how it has been successful in the

market. My research work is concerned with the

“Market Share of Pepsi lime product” the positioning

adopted by Pepsi is revalued on the basis of

SWOT and various filed observation it observed

93

during the research is that in most preferable pack is

300 ml. Pepsi and

94

Coke through their intensive promotional efforts

introduce this revolutionary changing Indian

Carbonated soft drink market.

Researcher observes an interesting thing that the

launchings of 200 ml. coke in research area which was

initially targeted, hit the Pepis’s consumer of 300 ml,

Coke describes to substantial level and Pepsi remained

unscratched.

After going through the extensive research in the

allocated areas it has been found that market share of

Pepsi and its products found at satisfactory level with

its’ competitor brands coke and its products. The

reason being is proper distr4ibution channel, marketing

efforts, mass advertising proper schemes.

With respect to it’s competitor brand Coke’s product

LIMCA, it is enjoying the maximum market share

because of it’s lemon flavor & attractiveness. Pepsi is

pursuing the philosophy of “High Sale” So I can say

that the future profitability of coke may be high due to

the cost saved is cost earned philosophy.

95

STAGE-I SURVEY OF MARKETS

What is the purpose?

Distribution of Pepsi Production.

Study Sales Pattern.

Promotion Of Product.

What is assessed?

Actual market Share.

Market Sales of Pepsi and its Competitor i.e.

COCA-COLA

Who is assessed?

Existing sales Policies.

Company Strategies.

Who provides input?

Retail Outlets.

96

Distribution & its employers.

Company employees.

How data collection is done?

Survey of retail outlets by questionnaire.

How feedback is taken?

Data analysis & comparison of statistical report.

Suggestions & recommendations.

Who gets feedback?

Management of all level.

Filed work force.

97

QUESTIONNAIRE

Name of outlet: Phone No:

Address: Name of

owner:

Q1. Supply of Pepsi is Regular?

YES NO

Q2. Advertisement material is available of.

a) Pepsi b) Both

c) Coke d) None

Q3. Scheme disclose by salesman daily?

YES NO

Q4. Problem rectified by Pepsi

a) Within a day b) Within a month

c) Within a week d) Never

98

Q5. Service wise, which is batter

a) Pepsi b) Coke

c) Other

Q6. At the buying situation what do you prefer?

a) Brand b) Price

c) Scheme d) Any other

Q7. Which flavor is more demand?

a) Pepsi b) Mirinda

c) Mountain Dew d) Slice

Q8. No. of crates / bottles of Pepsi at Present?

a) 0 – 2 b) 5 – 10

c) 2 – 5 d) above 10

Q9. No. of crates / bottles of Coke at Present?

a) 0 – 2 b) 5 – 10

c) 2 – 5 d) above 10

99

Bibliography

Books:

(a) R.C. Kothari Research Methodology

(b) Philip Kotler Marketing Management

Magazines

(1) Pepsi & Coke Journals

(2) Business Today

(3) Business India

(4) Business Would

Newspaper

(1) Time of India

(2) Economic Times

Web Site

http://www.pepsizone.come

http://www.pepsi.com

www.coca-coal.com

www.myenjoyzone.com

100