a project report on competition between pepsi co and coca cola brands
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Competition Between PepsiCo and Coca Cola brands
CONTENTS
- Executive Summary
- Introduction
- Literature review
- Purpose of the study
- Scope of the study
- Objectives
EXECUTIVE SUMMARY
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Competition Between PepsiCo and Coca Cola brands
The soft drinks and beverages can be said to be as old as a civilization of man. Soft
drinks 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 the
dominant 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 report
Section 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 lemon
flavour soft drinks in Belgaum city.
Research is done through personal interview with questionnaire for both retailer
and consumers and found that 7UP has good market potential as compared to Sprite and
consumers prefer this brand because of taste and refreshing and they expect some more improved
taste so that it can compete more with Sprite.
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to the water, the result is a great taste, but slightly boring beverage. Now, the bottler
brings it to life by adding carbon dioxide, a tasteless, odorless, natural gas, with a machine called
a 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 Shri
Modhubab Timblo, prominent industriously & business entrepreneur of Goa, found that the soft
drinks in northern part of Karnataka are being supplied from out side the State. Hence he found
the need of producing soft drinks for people of Karnataka from the land of Karnataka and from
the water of Karnataka itself. Accordingly the dream of modern manufacturing plant came into
reality in 1984 and Nectar beverages Pvt.Ltd., a beverage plant was commissioned on the our
skirts 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
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employees work as partners in progress and growth of the company. Nectar Beverages is headed
by 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 the
country thus enjoys the highest reputation in the soft drinks market of quality products
of 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 the
raw water till it turns into a sophisticated flavour drink.
Literature Review
PepsiCo is a world leader in convenient foods and beverages, with 2005 revenues of
more than $29 billion and 153,000 employees. The company consists of Frito-Lay North
America, PepsiCo Beverages North America, PepsiCo International and Quaker Foods North
America. PepsiCo brands are available in nearly 200 countries and territories and generate sales
at the retail level of about $78 billion.
Many of PepsiCo's brand names are more than 100-years-old, but the corporation is
relatively young. PepsiCo was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay.
Tropicana was acquired in 1998 and PepsiCo merged with The Quaker Oats Company, including
Gatorade, in 2001.
PepsiCo offers product choices to meet a broad variety of needs and preference -- from
fun-for-you items to product choices that contribute to healthier lifestyles.
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PepsiCo’s mission is “To be the world's premier consumer Products Company focused on
convenient foods and beverages. We seek to produce healthy financial rewards to investors as
we provide opportunities for growth and enrichment to our employees, our business partners and
the communities in which we operate. And in everything we do, we strive for honesty, fairness
and integrity.”
SHAREHOLDERS
PepsiCo (symbol: PEP) shares are traded principally on the New York Stock Exchange in
the United States. The company is also listed on the Amsterdam, Chicago, Swiss and Tokyo
stock exchanges. PepsiCo has consistently paid cash dividends since the corporation was
founded.
CORPORATE CITIZENSHIP
At PepsiCo, we believe that as a corporate citizen, we have a responsibility to contribute
to the quality of life in our communities. This philosophy is expressed in our sustainability
vision which states: “PepsiCo’s responsibility is to continually improve all aspects of the world
in 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 a
truly sustainable company.
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PepsiCo’s beverage business was founded 1898 by Caleb Bradham, a New Bern, North
Carolina druggist, who first formulated Pepsi-Cola.
Today, Brand Pepsi is part of a portfolio of beverage brands that includes carbonated soft
drinks, 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, Diet
Pepsi, Gatorade, Tropicana Pure Premium, Aquafina water, Sierra Mist, Mug, Tropicana juice
drinks, Propel, SoBe, Slice, Dole, Tropicana Twister and Tropicana Season’s 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 provides
advertising, marketing, sales and promotional support for its brands. This includes some of the
world's best-loved and most-recognized advertising.
In 1992 PBNA formed a partnership with Thomas J. Lipton Co. to selling ready-to-drink
tea brands in the United States. Pepsi-Cola also markets Frappuccino ready-to-drink coffee
through a partnership with Starbucks.
Anthony Rossi as a Florida fruit packaging business founded Tropicana in 1947. In 1954
Rossi pioneered a pasteurization process for orange juice. For the first time, consumers could
enjoy the fresh taste of pure not-from-concentrate 100% Florida orange juice in a ready-to-serve
package. The juice, Tropicana Pure Premium, became the company’s flagship product. PepsiCo
acquired Tropicana, including the Dole juice business, in August 1998.
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SoBe became a part of PBNA in 2001. SoBe manufactures and markets an innovative
line of beverages including fruit blends, energy drinks, dairy-based drinks, exotic teas and other
beverages with herbal ingredients.
Gatorade thirst quencher sport drink was acquired by The Quaker Oats Company in 1983
and 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 school's football team, "The
Gators," Gatorade is now the world's leading sport's 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. Brands
include Aquafina, Gatorade and Tropicana.
In addition to brands marketed in the United States, PepsiCo International brands include
Mirinda, Seven-Up and many local brands.
PepsiCo began its international snack food operations in 1966. Today, products are available in
nearly 170 countries. Often PepsiCo snack food products are known by local names. These
names include Gamesa and Sabritas in Mexico, Walkers in the United Kingdom, Simths in
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Australia, Matutano in Spain, Elma Chips in Brazil, and others. The company markets Frito-Lay
brands 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 the
situation demands a market analysis through Retailer and Customer which gives an over view of
the market in quantitative terms. The areas selected in Belgaum city are Vadagaon,, Hindwadi,
Deshmukh Road, Tilakwadi ,Camp area, Kirloskar Road, College road, Neharu Nagar, Bustand
Area, Shivbasava Nagar.
Statement of the problem is to know the competitive position of 7UP (Pepsi) with
Sprite (coca cola ) and consumption pattern of Lemon flavour soft drink of consumers and also
to study Retailers expectation. Dealers are visiting to outlets 3 – 4 time every week, or depends
upon the area. The company has to know the demands of the customers and their preferred
flavour brand it is done through by frequent visiting of Retailer, then came to know the needs of
the customer.
This survey covers all the dimensions that dealers consider while carrying
out their business. The aim of the survey was to visit the outlets in a particular sub route and get
as 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 as
much information as possible. To know the competitive position of 7UP (Pepsi) with Sprite
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(Coca cola) and consumption pattern lemon flavour soft drink of consumer the situation demands
a 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 are
the life style brands and are closely related with the consumer. The passion for cricket in the
country makes it unique market. The main ingredients of soft drinks are water, sugar, added
flavour, and carbonated gas. Though some channels like Bar and Restaurants run business
throughout year, for other channels the peak season is between February to June
Scope 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 Belgaum
city are Vadagaon,, Hindwadi, Deshmukh Road, Tilakwadi ,Camp area, Kirloskar Road, College
road, Neharu Nagar, Bustand Area, Shivbasava Nagar.
Dealers they will divide these areas depending upon their requirements. PepsiCo
is a world leader in convenient foods and beverages, with 2005 revenues of more than $29
billion and 153,000 employees. The company consists of Frito-Lay North America, PepsiCo
Beverages North America, PepsiCo International and Quaker Foods North America. PepsiCo
brands are available in nearly 200 countries and territories and generate sales at the retail level of
about $78 billion.
Many of PepsiCo's brand names are more than 100-years-old, but the
corporation is relatively young. PepsiCo was founded in 1965 through the
merger of Pepsi-Cola and Frito-Lay. Tropicana was acquired in 1998 and
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PepsiCo merged with The 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
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CONTENTS
- Organization profile
- Organization chart
- Sampling
- Research Design
- Data collection methods
- Measuring tools
ORGANIZATION PROFILE
Necessity is the mother of invention. . Late Shri Modhubab Timblo, prominent
industriously & business entrepreneur of Goa, found that the soft drinks in northern part of
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Karnataka are being supplied from out side the State. Hence he found the need of producing soft
drinks for people of Karnataka from the land of Karnataka and from the water of Karnataka
itself. Accordingly the dream of modern manufacturing plant came into reality in 1984 and
Nectar beverages Pvt.Ltd., a beverage plant was commissioned on the our skirts of Dharwad, on
the N.H.No.4.
Pepsi Co was founded in 1965. The CEO of Pepsi Co. is Mr. Neel Buhr and CEO of
Pepsi India is Mr. Raju Bakshi and CFO is Ms. Indra Noori. The employees’ strength is
1,53,000 and it operates in around 200 countries.
MISSION:
“We are committed to produce & deliver top quality product to our consumer. To be the
World’s Premier Consumer products focused on convenient foods and beverages. In every thing
we 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.
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
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o Good Manufacturing Process
o Special attention is also given to keep the Factory Surroundings Clean & Green
by growing Lawn
NBPL:
Nectar Beverages Pvt. Ltd, Dharwad is a franchisee of Pepsi Co. Late Shri Madhubab
Timblo, 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. The
group 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.
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 AUDIT
AMCRO ENVIRONMENT:
I. Demographic:
Age: The Indian population has >50% people between the age group of 12-26
which is an opportunity to the company.
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Family size: Increase in Nuclear families acts as an opportunity to the
company.
Family Life Cycle: Increase in number of DINK’s (Dual Income No Kids) is
also an opportunity.
Gender: Doesn’t make any difference as such.
Income: Plays a major role
Occupation: Affects the buying behavior
Education: Students are very potential customers.
II. Economic:
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 any
change in the lifestyle of customers directly affects the brand.
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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.
III. Competitors:
The major competitor is Coca-Cola along with local/ unorganized sector.
Pepsi Co. Brads Coca-Cola’s brand
Pepsi Coke
7up Sprite
Mountain Dew Thums Up
Mirinda lemon Limca
Mirinda orange Fanta
Slice Maaza
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Distribution and Dealers:
The 3 main channels to reach the consumers are
0
Production unit
Distributor
Convenience Groceries Restaurants E.g. Pan shops - General stores - Bars Bakeries -Coldrink
- Canteens Theatres Snooker bars Consumers
V. 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 advertising
agency. Pepsi Co is rated as top 3rd brand in India after ITC.
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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; both
companies have strong brands, which compete against each other.
The current industry growth rate is 8%, which was 22% before the pesticide issue. The
pesticide issuer has affected both the company’s sales and market share very badly. The end
result was the consumer’s shifting to health drinks, which is an increasing trend and threat to
both 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 are
the life style brads and are closely related with the consumers. The passion for cricket in the
country makes it a unique market.
The Indian Carbonated Beverage Industry is worth Rs.1000crore, which is equal to
270mm cases i.e., 6480mm bottled.
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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 channels
the peak season is between February to June.
Manufacturing Process:
WATER AND WATER TREATMENT
Pure water is taste less, colours less and odor less. Water as it occurs in nature, whatever
the source, always contains impurities in solution or in suspension. The determination of these
impurities makes water analysis necessary and the control of these impurities makes water
conditioning essential.
The various sources of water can be classified as – Rainwater, surface water, ground
water. Irrespective of the source of water, the water has to be tested and treated before raking
into 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 or
various 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.
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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 are
of 3, 00000 ltr. Capacity and one is 4, 00000 ltr capacity.
Raw water is collected from the bore wells in the storage treatment tanks and analyzed
the characteristics of raw water Viz- P- alkalinity, M- alkalininity, temporary hardness and
calcium 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 for
production.
Treated water passed through sand filter to remove and flock carry over, then an activated
carbon filter, which removes chlorine, and off tasted/odor causing impurities. Finally it goes
through 5 Micron pore size polishing filters to remove and carbon that may have been carried out
over from the carbon purifier, and then through ultraviolet. Chlorine concentration is maintained
at 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.
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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 then
fresh raw water is taken for fresh treatment.
ION Exchange Method:
Source of water – Bore well
Liquid 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 passed
through sand filter, carbon filter and resin bed. Then the soft water is stared in soft water storage
tanks. Before the water goes into storage tanks, 2- PPM of chlorine is injected into the on-line
water flowing from softener to soft water storage tanks. Contact time in storage tank is
minimum 2 hours. Then the water from the tank are being pumped on it passed through 5
Micron pore size polishing filters to the bottle washer/boiler. The concentration of chlorine at
the 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, which
helps 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.
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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 the
beverage plant, both from the standpoint of sanitation and control of concentration. The object
in syrup making is to prepare satisfactorily bended and finished syrup from which uniforms
beverages of high quality can be produced.
Normally required quantity of sugar of high quality is added to treated water and heated
to 85’ C, in a high grade stainless steel double jock vessel. Activated carbon is added to this to
remove impurities. Impurities along with activated carbon added to the sugar are separated from
the sugar solution by filtering the sugar syrup. Filter paper and Hyflo supercel are used as filter
aid. The temperature of the clear syrup thus obtained is brought down to 20’C and stored is
called “Simple” syrup.
When the syrup is completely prepared by the addition and blending of all flavoring
ingredients it is called as “Ready” / “Finished” / Flavored syrup. The syrup is ready for use in
production process.
CO2 & CARBONATION
The phenomenal of acceptance of carbonated beverage as a form of refreshment is done
in part to a unique taste, Zest, and sparkle imparted to the beverage by Carbon Di-Oxide. It also
adds to the life of the beverage.
The CO2 used for Beverage purpose are 99.9% pure, free from moisture, air, oil, grease and other
impurities.
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The amount of CO2 dissolved in solution is called as volumes. The number of volumes of
gas in the finished beverages has a definite relationship to the taste of the beverage. Correct
carbonation means a sparkling, stimulating, thirst quenching beverage that completely refreshes
and satisfies the consumer. Since there is definite relationship between taste and carbonation, it
is extremely important to determine and maintain the carbonation, which has proved most
acceptable through experience in consumer section.
The technique adopted at M/s. N.B.P.L. For carbonating the beverage is as under:
The 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 with
treated 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 dome
as well as the body of the carbonator is filled with gas. Syrup is sprayed into the carbonators
from the top, which flows down through the baffle plates provided inside the carbonator. As the
water 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 vessel
and by pre-cooling the syrup before it is pumped to the carbonator. Low gas volume product
need not be pre chilled
Concentrates
Flavoring Materials used in making carbonated beverages are primarily are alcoholic
extracts, emulsions, alcoholic solutions or fruit juices.
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Concentrates or non-alcoholic beverage bases are supplied by our principal company
from Channo (Punjab) having international standards. On addition of
concentrate to the simple syrup we get respective finished syrup ready for further process to
bottle beverages.
Bottle washing and bottle inspection
ONE of the most important aspects of the bottling operation is the cleaning of the
reusable bottle when it returns to the bottling plant. In order to be reused the bottle must be
sterile, of acceptable appearance, rinsed free of any detergent or sterilizing agent, and of good
mechanical strength.
The object of bottle washing is to product both a clean bottle and sterile one. The fact
that the bottle looks clean does not indicate it is sterile, and on the other hand, a dirty looking
bottle may be a sterile one.
The present day bottle washer is designed to both clean and sterilize bottle before sending
them to the filling line.
Bottle Washing Compounds:
Members of the alkali family of chemicals make up the basis of most bottle washing
compounds. Caustic soda is the principle ingredient because it has by far the best germicidal
properties.
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We also add certain chemicals to caustic solution to improve the detergent action of the
solution. Three factors are crucial in the germicidal efficiency of the washer. These are: contact
time, 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.
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
@ 45’C to 55’C 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% @ 75’C 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.
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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 55’C.
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 45’C.
Finally bottles free from caustic moved to a compartment called final rinse compartment where
the bottles are again, wanted sprayed both inside and outside with soft water to deliver clean and
sanitary bottles to the conveyor enroute to filler at ambient temperature.
Before the bottles moved through the conveyor, the bottles are subjected to methylene blue test
to ensure the bottles are free from mold and as also tests are carried our to determine whether the
bottles 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 is
called bottle inspection.
Bottle Inspection:
The clean bottles undergo inspection after they leave the washer and before they arrive at the
filler. Inspection can be done visually by an individual. It is a job requiring a great deal of
concentration and no individual can be efficient for long stretches at time. Provision should be
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Competition Between PepsiCo and Coca Cola brands
made for changing inspectors frequently, and adequate bring diffused light should be provided
which 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 cases
should be handy to accumulate unclean bottlers for rewashing. Those bottles found acceptable to
the empty bottle inspector are sent for filling and crowning.
Filling and the bottling line
The bottles, on a suitable conveyor line arrive at the rotary filler, which is equipped with
filing heads. The beverages filling unit includes a filling tank, which receives beverage from the
carbonator.
The tank is also connected to the gas chamber of the carbonator. This connection insures
balanced 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 is
established in the bottle. At this point, the pressure inside the bottle is equal to and derived from
the filling tank.
Once the bottle is properly pressurized, carbonated water flows in displacing air and Co2
in the bottle. The displaced gas passes through the counter pressure lines back to the top of the
filler tank.
When the proper level of beverage in the bottle is reached, the supply is cut off and the
top gas pressure in the bottle is sifted to the atmosphere.
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Competition Between PepsiCo and Coca Cola brands
Once the top pressure has been released, the bottle is removed from the valve and passes
to the crowner.
The crowning unit consists of the hopper for holding the crown supply, a crown chute
and the crowning mechanism. The crowned bottle then moves from the crowner on to the out
feed conveyor.
Final Inspection Point:
Then the sealed bottles are moved on a conveyor line and it is subjected to a final
inspection. Where the inspector checks for un crowned bottles, over/under filled bottles, foreign
matter (if any), and for any other visual defects.
Once the inspector satisfies with the quality of product and package, he allows moving
the bottles, further to the collecting table, where the bottles are manually collected and put in the
crates 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 highest
standard of cleanliness for premises, personnel and equipment is obviously necessary due to the
type of operation involved that of manufacturing a food product.
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Competition Between PepsiCo and Coca Cola brands
Sanitation is necessary to insure the keeping qualities, proper appearance and full flavour
of any soft drink. When the equipment becomes contaminated, yeast, bacteria or mold
microorganisms begin to appear in the finished beverage. Increased number of these
microorganisms will cause the development of undesirable tastes and odors and ultimate spoilage
of the product. Nothing will kill the demand for a beverage any quicker than off-tastes and odors
or product spoilage.
Hence sanitation, good plant house keeping and good manufacturing practice are strictly
implemented at N.B.P.L.
Quality Assurance
Perhaps the most important activities in a bottling plant are those concerned with the
maintenance of the standards of purity and uniformity set for the beverages produced. These
activities 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 independent
laboratories of international repute.
History of organization
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Competition Between PepsiCo and Coca Cola brands
The manufacturing of soft drinks began in the 1830's. However, the evolution of soft
drinks took place over a much longer time period. The forerunners of soft drinks began more
than 2,000 years ago when Hippocrates, the "Father of Medicine," first suspected that mineral
waters could be beneficial to our well-being. But Hippocrates did not envision drinking the
effervescent mineral waters bubbling from the earth's crust. Instead, the Greeks and Romans
used them for bathing and relaxation. More than a thousand years passed before mineral waters
made the transition from therapeutic bath to refreshing beverage.
The soft drink industry was a seasonal business in the early days, operating primarily
during the summer months. Sales were limited by few outlets for the new carbonated beverages,
and by the consumer's restricted mobility.
How Soft Drinks Are Made:
Soft drinks are mostly water. So the quality of the water going into soft drink is very
important. A series of filtration systems produces the super-purified water that is fresh, clean and
clear.
The Flavor Secret
Here’s where the magic happens. From secret recipes, flavorings are added to give each
soft drink its unique taste. By combining sweeteners, herbs, berries, and many other wholesome
ingredients, a syrup base is created which is added to the pure water
Adding Bubbles Is A Gas:
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Competition Between PepsiCo and Coca Cola brands
After the flavors are added brands like Pepsi and Coke is enhanced in India the local brands are
being 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 and
Coca-Cola the market has come totally under their control.
Non-alcoholic soft drink beverage market can be divided into fruit drinks and soft
drinks. 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
category. The market can also be segmented on the basis of types of products into cola products
and 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, Diet
Pepsi etc. Non-cola segment, which constitutes 36-37%, can be divided into 4 categories based
on 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 markets
in metro cities and northern states of UP, Punjab, Haryana etc. Orange flavored drinks are
popular in southern states. Sodas too are sold largely in southern states besides sale through bars.
Western markets have preference towards mango-flavored drinks.
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Competition Between PepsiCo and Coca Cola brands
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 and
Gatorade/Tropicana North America) and Quaker Foods North
America. PepsiCo International includes the snack businesses of Frito-Lay International and
beverage businesses of PepsiCo Beverages International. PepsiCo brands are available in nearly
200 countries and territories.
In May 1886, Doctor John Pemberton a pharmacist from Atlanta, Georgia invented
Coca Cola. John Pemberton concocted the Coca Cola formula in a three legged brass kettle in his
backyard. The name was a suggestion given by John Pemberton's bookkeeper Frank Robinson.
The soft drink was first sold to the public at the soda fountain in Jacob's Pharmacy in
Atlanta on May 8, 1886.
Until 1905, the soft drink, marketed as a tonic, contained extracts of cocaine as well as
the caffeine-rich kola nut. By the late 1890s, Coca-Cola was one of America's most popular
fountain 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, was
an important factor in Pemberton and Candler's success and by the turn of the century, the drink
was sold across the United States and Canada. Around the same time, the company began selling
syrup to independent bottling companies licensed to sell the drink. Even today, the US soft drink
industry is organized on this principle
The competition:
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Competition Between PepsiCo and Coca Cola brands
In 1931, when Coca-Cola was the envy of the world of soft drinks and one of the
most worry-free profit machines in the history of business in the United States, Pepsi-Cola was
declared bankrupt for the second time in its history. In 1987, PepsiCo, Inc., with sales of over
$11 billion, ranked 29 in Fortune's list of the nation's 500 largest corporations. One analyst
asserted in 1986 that PepsiCo "has emerged as perhaps the single best consumer products
company that exists today." Coca-Cola's sales in 1987 were $7.7 billion, which placed it 54 in
the Fortune 500.
Both companies were diversified by the mid-1980s. About 70 percent of Coca-Cola's sales and
almost 85 percent of its profits, however, were still derived from soft drinks, with the remainder
coming from the food and entertainment divisions.
No single foreign investment has been the center of much attention and controversy in
the late 1980 and 1990s as the PepsiCo project in India. The project, Pepsi
Foods Limited, was cleared by the Indian government in September1988 as a joint venture of
PepsiCo, Punjab government-owned Agro Industrial corporation (PAIC) and Voltas India
limited. Before this project was cleared, PepsiCo made an attempt to enter into India as early as
in May1985, when it teamed up with Agro Product export Ltd.
A company owned by R. P. Goenka group, and sought permission from the central
government 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 objectives
put forward by PepsiCo were ‘to promote the development and export of Indian made and Agro
–based 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 development
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Competition Between PepsiCo and Coca Cola brands
received rejections on the grounds that the import of concentrate could not be agreed to and the
use 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 1986
with stress more on diversification of Punjab agriculture and employment generation rather on
soft drinks. The proponents of project called it as a second “Green Revolution” in Punjab and
projected it as harbinger of a horticulture revolution that would end stagnation in Punjab’s rural
sector and would help in promoting small and middle farmers. A strong argument was put
forward that this project will create ample of employment opportunities for the unemployed
youth 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 to
PepsiCo’s entry into India in the form of joint venture with PAIC and Voltas as its partners. The
equity of Pepsi Foods Limited was divided among the partners with PAIC holding 36.11 %,
Voltas 24% and PepsiCo 36.89% coupled with the‘PunjabCard’. PepsiCo also made certain
commitments 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;
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Competition Between PepsiCo and Coca Cola brands
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.
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 objectives
of the economy and how it ‘specifically supported national priorities in area such as Exports,
Agriculture, Employment and Technology’.
Many of PepsiCo's brand names are over 100-years-old, but the corporation is
relatively young. PepsiCo was founded in 1965 through the merger of Pepsi-Cola and Frito-
Lay. Tropicana was acquired in 1998 and PepsiCo merged with The Quaker Oats Company,
including Gatorade, in 2001.
Employees, business partners and the communities in which company operates and
in everything company does, company strives for honesty, fairness and integrity.
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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 Manager
Area sales Manger 1 Area sales Manager 2
CE1 CE2 CE3 CE4 CE1 CE2
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Competition Between PepsiCo and Coca Cola brands
Distributor1 Dist.2 Dist.3 Dist.4
Route1 Route2 Route3
SAMPLING
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 general
stores 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
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Competition Between PepsiCo and Coca Cola brands
- 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
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
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Competition Between PepsiCo and Coca Cola brands
CONTENTS
- Results & discussion with graphs & chart
- Conclusion, a proposed action plan with resource requirements
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Competition Between PepsiCo and Coca Cola brands
Retailer response analysis
1) Major lemon flavor preferred by customer
7up 22
Sprite 15
Limca 7
Mirinda lemon 6
44%
30%
14%12%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
7up Sprite Limca Mirinda lemon
Series1
Source: field survey
Major sale of lemon flavors brands like 7up(pepsi) and sprite (coca cola) and others
where 7up having sale of 42%, sprite having 30%, limca having 16% and mirinda lemon having
8%
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39
Competition Between PepsiCo and Coca Cola brands
2) Reason for sale of particular brand
7UP
Availability 6
consumer demand 47
price 2
advertisement 13
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 price
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9%
69%
3%
19%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Availability Consumer demand Price Advertisement
Series1
40
Competition Between PepsiCo and Coca Cola brands
B) Reason for sale of particular brand
Sprite
Availability 6
consumer demand 35
price 3
advertisement 12
11%
63%
5%
21%
0%
10%
20%
30%
40%
50%
60%
70%
Availability consumerdemand
price advertisement
Series1
Source: field survey
Since consumer demand is more for sprite about 63% is the reason for sale 21% due
advertisement, 11% availability and only 5% sale due to price
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41
Competition Between PepsiCo and Coca Cola brands
3) sale of cases per month lemon flavour brand (7up)
28%
56%
10%6%
0%
10%
20%
30%
40%
50%
60%
1-2 case 2-4 case 4-6 case 6& above
Series1
Source: field survey
Based on the survey it is revealed that lemon flavor Pepsi brand sale 1-2 case is 28%, 2-4 cases is
56% ,4-6 cases is 10% and 6 & above is 6% due to season fluctuation some variation may occurs
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1-2 case 14
2-4 case 28
4-6 case 5
6& above 3
42
Competition Between PepsiCo and Coca Cola brands
4) Further expectation from lemon flavor
7UP
Improve taste 27
Better availability 19
Better Benefits 30
Others 14
30%
21%
33%
16%
0% 5% 10% 15% 20% 25% 30% 35%
Improve taste
Better availability
Better Benefits
Others
Series1
Source: field survey
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% expect
others feature like repair charges, cooling charges ect
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43
Competition Between PepsiCo and Coca Cola brands
5) Sale of 7UP
Reduced 13
Not reduced 37
Reduced26%
Not reduced74%
Reduced
Not reduced
Source: field survey
Based on the survey it was found that 74% of the retailer felt that the sale of 7up is
not reduced and 26% say reduced due to lean season.
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Competition Between PepsiCo and Coca Cola brands
B) Sale of Sprite
Reduced 18
Not reduced 32
Source: field survey
From the response 64% of the retailer felt that the sale of sprite is not reduced and 36%
say reduced.
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Reduced36%
Not reduced64%
Reduced
Not reduced
45
Competition Between PepsiCo and Coca Cola brands
6) Delivery of soft drink 7UP (pepsi)
Yes 39
No 11
Source: field survey
78% of the retailer are satisfied with delivery of the product where as 22% are not
satisfied with delivery provided by the pepsi company
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Yes78%
No22%
Yes
No
46
Competition Between PepsiCo and Coca Cola brands
B) Delivery of soft drink Sprite (coca cola)
Yes 35
No 15
Source: field survey
70% of the retailer are satisfied with delivery of the product where as 30% are not
satisfied with delivery provided by the coca cola company
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Yes
70%
No
30%
yes
no
47
Competition Between PepsiCo and Coca Cola brands
7) Satisfied with commission/ margin paid by 7up (pepsi)
Yes 48
No 2
Source: field survey
96% of the retailers are satisfied with commission/margin paid by the pepsi
company remaining 4% are not satisfied.
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96%
4%
0% 20% 40% 60% 80% 100% 120%
Yes
No
Series2
48
Competition Between PepsiCo and Coca Cola brands
B) Satisfied with commission/ margin paid by Sprite (coca cola)
yes 46
No 4
Source: field survey
92% of the retailers are satisfied with commission/margin paid by the coca cola
company. Remaining 8% are not satisfied.
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92%
8%
0% 20% 40% 60% 80% 100%
Yes
No
Series1
49
Competition Between PepsiCo and Coca Cola brands
8) Satisfied with credit and payment procedure by 7up (pepsi)
Yes 41
No 9
Source: field survey
82% of retailers are satisfied with credit facility and payments procedure provided by
the pepsi company remaining 18% are not satisfied
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Yes
82%
No
18%
Yes
No
50
Competition Between PepsiCo and Coca Cola brands
B) Satisfied with credit and payment procedure by Sprite (coca cola)
Yes 38
No 12
Source: field survey
76% of retailers are satisfied with credit facility and payments procedure provided by
the coca cola. Company remaining 24% are not satisfied.
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Yes
76%
No
24%
Yes
No
51
Competition Between PepsiCo and Coca Cola brands
Findings based on Retailers survey
The following finding based on the survey consists of sample size of 50 retailer
respondents distributed in selected areas of Belgaum city.
1) Major sale of lemon flavor brands like 7up (pepsi) and sprite (coca cola) and others where
7up 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 sprite
has 63% so retaining the consumer demand is must availability of sprite is low
when compare to 7up
3) Based on the survey it is revealed that lemon flavor Pepsi brand sale 1-2 case is 28%, 2-4
cases is 56% ,4-6 cases is 10% and 6 & above is 6% due to season fluctuation some variation
may occurs
4) 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.
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Competition Between PepsiCo and Coca Cola brands
5) Retailers expect some more better benefits like gifts, tour package and improve
taste 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 at
the right time, credit facility and commission provided by the company.
Consumer Response Analysis.
1) Lemon flavor preferred by consumers
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7UP 42
Sprite 34
Others 14
53
Competition Between PepsiCo and Coca Cola brands
7UP46%
sprite38%
others16%
7UP
sprite
others
Source: field survey
Based on the survey 46% of the respondents prefer to drink 7up and 38% of the respondents
prefer to drink sprite and remaining 16% prefer other brands.
2) Consumption pattern of soft drink
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Daily 12
Twice a week 38
weekly 27
occasionally 13
54
Competition Between PepsiCo and Coca Cola brands
13%
42%
30%
15%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Daily Tw ice aw eek
w eekly occationally
Series1
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
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Taste 23
availability 4
refresh ness 18
price 1
promotion 15
bottling/labeling 0
55
Competition Between PepsiCo and Coca Cola brands
37%
7%29%
2%
25%0%
Taste
availability
refresh ness
price
promotion
bottling/labeling
Source: field survey
37% of the respondent prefer a particular 7up brand because of taste, 29% prefer because of it
is refreshing and 2% prefer because of price, 25% of respondent prefer because of promotional
activities and rest of the 7% respondents prefer a particular brand because of availability.
B) Reasons behind preferring Sprite
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Taste 18
availability 8
refresh ness 15
price 2
promotion 13
bottling/labeling 0
56
Competition Between PepsiCo and Coca Cola brands
32%
14%27%
4%
23%0% Taste
availability
refresh ness
price
promotion
bottling/labeling
Source: field survey
32% of the respondent prefer a particular sprite brand because of taste, 27% prefer because of
it is refreshing and 4% prefer because of price, 23% of respondent prefer because of
promotional activities and rest of the 14% respondents prefer a particular brand because of
availability.
4) Mode of advertisement for 7up
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news paper/magazine 5
TV ads 19
Hoardings 5
Internet 8
other 7
57
Competition Between PepsiCo and Coca Cola brands
new s paper/maga
zine11%
other16%
Internet 18%
Hordings11%
TV ads44%
newspaper/magazineTV ads
Hordings
Internet
other
Source: field survey
43% 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 the
convenience mode of advertisement
B) Mode of advertisement for Sprite
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news paper/magazine 6
TV ads 15
Hoardings 5
Internet 7
other 3
58
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
Babasabpatilfreepptmba.com
TV ads42%
Hoardings14%
Internet 19%
Other8%
News Paper/ma
gazine17%
NewsPaper/magazine
TV ads
Hoardings
Internet
Other
student 59
service 17
other 14
59
Competition Between PepsiCo and Coca Cola brands
65%
19%
16%
0% 20% 40% 60% 80%
student
service
other
Series1
Source: field survey
Out of 90% respondent 65% belongs to student professions, 19% belongs to services like
government and private sector and 16% of the respondent belongs to other profession
6) Consumer opinion about lemon flavor 7up brand
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Excellent 6
Good 22
Moderate 14
Poor 2
Very poor 0
60
Competition Between PepsiCo and Coca Cola brands
14%
50%
31%
5%0%
0%
10%
20%
30%
40%
50%
60%
Excellent Good Moderate Poor Verypoor
Series1
Source: field survey
14% of the respondent has excellent opinion about 7up lemon flavor. 50% have good
opinion , 31% moderate and only 5% poor opinion, very poor is nil
B) Consumer opinion about lemon flavor sprite brand
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Excellent 4
Good 13
Moderate 16
Poor 3
Very poor 0
61
Competition Between PepsiCo and Coca Cola brands
12%
36%
44%
8%
0%0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Excellent Good Moderate Poor Very poor
Series1
Source: field survey
12% have excellent opinion about sprite lemon flavor, 36% have good opinion, 44%
moderate and only 8% poor opinion and very poor is nil.
7) Expectation of consumers from 7up brand
Babasabpatilfreepptmba.com
better taste/flavor 30
Availability 15
Price 7
Promotional activity 18
Packaging/labeling 9
Others 662
Competition Between PepsiCo and Coca Cola brands
35%
18%8%
21%
11%7%
bettertaste/f lavour
Availablity
Price
Promotionnalactivity
Packaging/labeling
Others
Source: field survey
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 offers.
B) Expectation of consumers from Sprite brand
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better taste/flavor 26
Availability 22
Price 5
Promotional activity 15
Packaging/labeling 14
Others 6
63
Competition Between PepsiCo and Coca Cola brands
29%
25%6%
17%
16%7%
bettertaste/f lavour
Availablity
Price
Promotionnalactivity
Packaging/labeling
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
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strongly agree 18
agree 43
neither agree nor disagree 15
disagree 12
strongly disagree 264
Competition Between PepsiCo and Coca Cola brands
20%
48%
17%13%
2%
0%
10%
20%
30%
40%
50%
60%
stornglyagree
agree neitheragree nordisagree
disagree stornglydisagree
Series1
Source: field survey
Based on the response 20% of the respondents are strongly agree with the celebrities really
influence them to buy a soft drink. 48% agree, 17% neither agree nor disagree, 13% disagree and
only 2% are strongly disagree
Findings based on consumer survey
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Competition Between PepsiCo and Coca Cola brands
1). Based on the survey 49% of the respondents prefer to drink 7up and 40% of the respondents
prefer 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 it
is refreshing and 2% prefer because of price, 25% of respondent prefer because of promotional
activities 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 of
taste, 27% prefer because of it is refreshing and 4% prefer because of price, 23% of respondent
prefer because of promotional activities and rest of the 14% respondents prefer a particular
brand 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 like
government and private sector and 16% of the respondent belongs to other profession
5) 14% of the respondent have excellent opinion about 7up lemon flavor. 50% have good
opinion , 31% moderate and only 5% poor opinion, very poor is nil. where as,
sprite has 12% have excellent opinion about sprite lemon flavor, 36% have good opinion, 44%
moderate and only 8% poor opinion and very poor is nil
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Competition Between PepsiCo and Coca Cola brands
6) 20% of the respondents are strongly agreed with the celebrities really influence them to buy a
soft drink. 48% agree, 17% neither agree nor disagree, 13% disagree and only 2% are strongly
disagree
7) 42% of the respondents agree with TV ads as a mode of advertisement is convincing to them,
19% is saying internet.
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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 don’t want to change brand. So in
order to retain them the company should maintain quality of the product.
Majority of the respondents feel that celebrities really influence to buy a soft drink so
company should concentrate on these aspects
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Competition Between PepsiCo and Coca Cola brands
Conclusion
It 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 have
Increased numerously.
Still “consumer is the king” holds its highest value. Although there is a neck to neck competition
with Coca-Cola, Pepsi had emerged as the strongest brand.
The factors influencing while decision making in consuming soft
Drinks in Belgaum are the taste of the product, brand name and advertisements, celebrities that
influence the consumer attitude to a larger extent. There is greater market potential for 7up soft
drink business in Belgaum City due to the presence of a larger population of college students in
the city. At present Pepsi brands especially, lemon flavor 7UP soft drinks have a greater market
share in Belgaum City when compared to the Coca-Cola lemon flavor brands of Sprite soft drink
among the international brands
.
Thus report come to a point that, since the Belgaum city is potential market for lemon flavor 7UP
soft drink so company must concentrate on future market by improved taste.
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Competition Between PepsiCo and Coca Cola brands
CONTENTS
- Executive Summary
- Appendix
Questionnaire
- Bibliography
Retailer code sheet
Q.NoQ 4 Q No. 7 Q 8 Q 9 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 2
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Competition Between PepsiCo and Coca Cola brands
Samples 1 1 1 2 4 1 1 3 2 1 1 1 1 1 2 12 3 2 2 2 4 2 2 1 1 1 1 1 13 2 2 2 4 1 2 1 1 1 1 1 1 14 1 2 3 2 2 1 1 1 1 1 15 2 2 1 2 3 1 1 1 1 1 1 2 16 1 2 4 1 2 4 2 1 2 1 1 1 2 17 3 1 2 4 2 4 1 3 2 2 2 1 1 1 1 18 2 2 2 2 3 2 2 1 1 1 2 1 29 1 2 2 1 1 1 1 1 1 1 1 1
10 2 2 3 2 2 1 1 1 1 1 111 1 2 2 1 4 2 2 1 1 1 1 1 212 1 2 3 1 3 2 1 1 1 1 1 1 113 3 2 2 2 3 2 2 2 1 1 1 2 114 2 1 3 4 2 2 3 1 2 1 2 2 1 1 115 1 2 1 2 2 2 1 1 1 1 1 116 2 2 2 4 1 3 4 2 1 1 1 1 1 1 117 2 2 2 1 4 2 2 1 1 1 1 1 118 3 2 2 3 2 1 1 1 1 1 1 119 1 2 4 2 2 3 1 2 1 1 1 1 2 120 2 2 3 1 3 2 2 1 1 1 1 1 121 3 1 2 2 4 2 1 1 1 1 1 1 222 1 2 2 3 2 2 1 1 1 1 1 123 2 2 4 2 1 2 2 2 1 1 1 1 124 1 2 2 1 2 3 4 1 2 1 1 1 1 2 125 4 2 4 1 2 1 1 1 1 1 2 126 1 2 2 2 2 1 1 1 2 1 127 1 2 4 1 2 1 2 3 2 2 1 2 1 1 1 128 1 1 2 2 4 2 1 1 1 1 1 1 129 2 2 2 1 1 2 2 1 1 1 1 130 1 2 2 4 2 3 2 1 1 1 1 1 2 231 3 2 2 1 3 4 2 2 1 1 1 1 1 132 1 4 1 3 2 2 1 1 1 1 1 133 2 2 2 2 1 2 1 1 1 1 2 134 4 2 2 1 3 2 1 1 2 1 1 1 135 1 1 2 2 4 3 4 2 2 1 1 1 1 1 236 1 2 4 1 2 1 3 1 2 2 1 1 1 2 137 1 2 2 2 1 1 1 2 1 1 138 2 2 2 1 3 4 2 2 1 1 1 1 1 139 4 2 3 2 3 2 2 1 1 2 1 1 1 140 4 1 2 2 1 3 1 2 1 1 1 2 1 241 1 2 2 2 4 2 1 1 1 1 1 1 242 1 2 4 2 1 3 2 2 1 1 1 1 1 143 2 2 2 4 2 1 2 1 1 1 1 1 144 1 2 2 1 3 4 2 1 2 1 1 2 1 1
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Competition Between PepsiCo and Coca Cola brands
45 2 2 1 1 2 2 1 1 1 1 2 146 1 2 4 2 3 2 1 1 1 1 1 1 147 2 2 1 2 2 1 1 1 1 1 248 3 1 2 4 2 2 3 1 1 1 2 1 1 1 149 2 2 2 1 3 4 1 2 1 1 1 1 2 150 1 2 2 4 1 3 1 1 1 1 1 1 1 1
Consumer Code Sheet
Q.No 2 4 5 6a 6b 7a 7b 8a 8bSamples 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 3 1 4 3 5 2 24 1 1 1 2 4 3 5 2 4 3 5 6 1 1 5 3 2 7 2 1 3 1 3
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Competition Between PepsiCo and Coca Cola brands
8 1 4 3 3 2 2 9 2 4 3 5 1
10 1 1 1 2 11 2 5 4 3 2 12 1 5 5 13 1 1 1 1 2 14 3 4 5 315 1 4 3 3 16 1 1 1 2 2 2 17 1 3 18 2 4 3 1 1 19 1 1 1 1 4 4 20 1 3 3 1 2 21 1 3 1 5 2 22 2 3 1 1 5 23 1 1 1 3 4 24 1 3 2 25 2 3 3 1 3 226 1 4 1 1 2 3 27 1 1 5 28 2 3 2 5 2 29 1 3 3 2 2 30 1 4 1 4 2 1 31 1 1 1 5 32 2 3 5 33 1 3 4 34 2 1 3 1 235 1 3 1 2 2 36 1 3 37 1 4 3 1 3 3 38 2 3 1 4 39 1 3 3 2 40 1 3 1 2 2 4 41 3 3 42 1 3 1 5 4 3 3 43 2 2 1 1 44 1 2 1 3 2 5 2 45 2 46 2 1 1 1 347 1 2 1 5 2 48 1 4 1 49 2 2 4 50 1 3 1 3 3 51 1 2 5 1 2 2 52 2 2 2 4 53 2 2 2 5 54 1 3 5 2 3 55 1 1 2
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Competition Between PepsiCo and Coca Cola brands
56 1 2 57 1 2 5 2 58 2 2 3 1 159 3 2 2 2 2 60 2 2 5 1 61 3 3 1 3 62 1 4 5 5 63 2 2 5 3 2 3 264 3 2 5 65 2 2 1 1 2 66 3 2 367 1 2 68 2 2 3 3 69 1 2 1 270 1 3 1 71 1 2 3 5 4 2 72 2 2 5 73 3 3 2 2 74 2 3 1 3 75 3 2 1 76 2 2 5 77 3 2 3 2 78 5 2 2 79 2 2 5 1 80 3 2 3 3 81 2 3 4 82 1 2 2 83 3 3 1 2 84 2 2 3 3 85 3 3 2 86 1 2 5 5 3 2 87 2 2 1 288 3 89 2 3 4 3 90 3 4 5 3 2 91 2 2 3 2 92 3 4 5 93 1 2 2 94 2 2 5 1 5 95 3 2 2 2 96 497 2 2 5 3 4 2 98 3 2 4 99 2 2
100 3 2 2 2
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Competition Between PepsiCo and Coca Cola brands
QUESTIONNAIRE
Dear Sir/Madam,
Name:
Occupation
1. Do you prefer soft drink?
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Competition Between PepsiCo and Coca Cola brands
Yes No (if No go to Q 12)
2. Which lemon flavor do you prefer among the following brands? 7up Sprite Others
3. Reasons for not preferring (7 UP/Sprite)
4. How often do you have a soft drink? Daily Twice a week
Weekly Occasionally
5. Who influenced you to prefer soft drink? Friends Colleagues Family members
Advertisement Others
6. Reasons behind preferring (7 up/Sprite)? Taste Availability Refresh ness
Price Promotion Bottling/labeling
7 Which mode of advertisement is more convincing and mind setting for the following brands? 7UP Sprite News paper/Magazine News paper/Magazine
TV Ads TV Ads
Hoardings Hoardings
Internet Internet
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Others Others
8. a) Your opinion about Lemon flavor 7up brand Excellent good Moderate
Poor Very poor
8. b) Your opinion about Lemon flavor sprite brand
Excellent good Moderate
Poor Very poor
9. 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/labeling
10. Do you accept that the celebrities really influence you to buy the soft drink?
____Strongly ____ Agree _____ neither agree ____ Disagree ___ strongly Agree nor disagree Disagree
11. How do you like to compare 7UP with Sprite (vice-versa?)
12. Other than soft drink what would you like to prefer?
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Competition Between PepsiCo and Coca Cola brands
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
4) Which are the major lemon flavors preferred by the customer
a) 7up b) sprite
c) Limca d) Miranda Lemon
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Competition Between PepsiCo and Coca Cola brands
5) 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) Advertisement
6) What are your further Expectations from lemon flavor 7 up brand?
a) Improve taste b) better availability
c) Increase in quality d) others
7) What do you think about sale of
7 UP a) Reduced b) Not reduced
Sprite a) Reduced b) Not reduced
8) If reduced what are the reasons:
7 UP Sprite
9) Does Company provides timely delivery of soft drink crates? 7 UP a) Yes b) No
Sprite a) Yes b) No
10) Are you satisfied with commission/margin provided by the company on Lemon flavor brands?
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Competition Between PepsiCo and Coca Cola 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 Suggestions
BIBLIOGRAPHY:
Marketing Management – Philip Kotler
Marketing Research – Tull and Hawkins
Internet Websites:
WWW. Pepsiworld.com
www.google.co.in
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