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CHAPTER-1
INTRODUCTION
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INTRODUCTION TO THE TOPIC
Aerated waters are essentially non-alcoholic beverages artificially saturated at normal
temperature with carbon dioxide, the pressure varying according to the type of
beverage. Artificially aerated waters have its initiation from naturally aerated mineral
spring water. Large scale manufacturing of aerated water was started by Paul, at
Geneva in 1870 and that Schweppes in London. In USA Spokesman added fruit
juice, a flavor and the soft drinks industry started from 1907.
From the original concept of initiation of natural carbonated water from spring, the
industry has broadened to include the production of aerated sweetened drinks and
substitute for beverages, such as cider, which are aerated water since the
manufacturing process and the apparatus has undergone a considerable improvement.
Need for the study
Soft drinks industry is one of the most important industries in India. It has achieved
greater importance in recent years because of the patronage evinced by the general
public and the government interest to promote the industry. The number of units
manufacturing soft drinks is increasing over the years, which is mainly controlled by
two major MNC’s Pepsi Co. & Coca Cola.
The strategies adopted by a company to sell the products and reach the targeted sales
have great importance. It is the combination of various elements of marketing used to
attain the best possible results.
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The marketing objectives of seller are to combine the various sales effecting elements
effectively to reach the targeted sales at a cost that will permit it to make desired
profits.
The soft drinks industry in India is very competitive. Presently the market share of
Pepsi Co is 52% with a sales of Rs. 3,200 crore whereas the Coco Cola has a
share of 48% with sales of Rs. 2,500 crore. The degree of competition can be
understood when one finds the market share fluctuating every time with new schemes,
and new advertisements. Thus it can be said, marketing assumes great importance in
the light of fierce competition. The organization should review their marketing
programmes to maintain and to increase its market share. Therefore the study of
marketing activities of Pepsi Cola in area like NCR Delhi and its parts will contribute
to the soft drinks industry.
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CHAPTER-2
RESEARCH OBJECTIVE AND METHODOLOGY
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Objectives of My Study
Objectives of the dealer’s survey
To evaluate the market share of PepsiCo. And its competitor Coca cola.
To find out the product availability of PepsiCo.
To measure the advertising coverage of the companies.
Objectives of the consumer’s survey
To know the consumer preference regarding different types of flavoured
soft drinks in the region studied.
To find the most popular drink in the region and the reasons for the
preference.
To measure advertising effectiveness of PepsiCo. In comparison to Coca-
Cola.
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Research Methodology
Research Design
Data Requirements
Data is unassimilated facts about the market. Information ids the recorded experience
that is useful for decision-making. In the research program the information required
is both qualitative and quantitative.
The information required for the said research are about case strength, chilling
process, kinds of stores, consumer tastes and preferences and the frequency of
consumption, to name a few.
Data Sources
Secondary Data: This is the data that was collected for another purpose and
already exists somewhere. The sources of secondary data in
this case were company manuals and websites on the Internet.
Primary Data: This is the data gathered for a specific purpose or a specific
research project. As it is a descriptive research the primary data
was collected by questionnaires in two stages
First Part: Information from the dealers/retailers or outlets. Dealers were
asked questions from the structured questionnaire made to
gather information.
Second Part: Information from the consumers was collected through another
structured questionnaire.
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Research plan
The research plan can be further divided into following parts:
Define the Population
The first step is to define the population from which the sample is to be drawn i.e.
define the target population. The population in this study is all the dealers and all the
consumers (present and potential both).
Sampling Methodology
The sampling methodology adopted was convenience and judgment sampling.
Convenience sampling was chosen because of the limitation of time. Judgment
sampling was chosen because the distributors, retailers, customer executive and
salesman can say better about the sample to be chosen.
Sample FRAME
The sample frame was based on the boundaries that surround the population. The
boundary, here, is essentially the geographic boundary i.e. markets of the many
distributors under the research program, which consist of dealers of the routes and the
people living in and around NCR Delhi region.
Sample unit
The sample units are
Dealers for a dealer’s survey
Consumers for consumer’s survey
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Respondents
Respondents’ were-
Dealers from all the distributors.
Consumers of all age, sex and religion
Data collection instruments
Primary data was collected through questionnaires prepared under the guidance of
customer executive, distributors and project guide.
Sample Size
Sample size for consumers = 200
Sample size for dealers = 100
Market survey
Market survey is marketing research essentially done through fieldwork.
Preliminary work
Discussion with customer executive, territory trainer and manager (H.R.D.) and desk
research lead to formulation of topic (for the research program), which could help in
decision making of the consumer executive in the NCR Delhi region.
Questionnaire design
Questionnaire was designed with the help of the project guide and the customer
executive.
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Pilot Study
Pilot study was done in the nearby areas to different distributors.
Actual survey
By moving with the loaded vehicle, and my own bike the actual survey was done. As
the market was divided among many distributors, the 100 copies of dealer’s
Questionnaire and 200 copies of consumer’s questionnaire were divided among areas
as per the size of the market under the distributor and with the consent of customer
executive.
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CHAPTER-3
LITERATURE REVIEW
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Literature Review
The soft drink industry has witnessed a rapid growth over the pasty few years. This
has been largely due to increased globalization. The soft drink market is segmented
into carbonated drink, fruit base drink, concentrates and squashes carbonated drinks
dominated the market with brands like Pepsi, coke, Thumps-up, Mirinda, Fanta, etc.
becoming household names.
The market is characterized by high volumes, low margins on individual products and
to distributors owing to intense competition. A strong network is prerequisite for
generating large sales. -
THE SYSTEM
The Value chain
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RawMaterials
The Pepsi
cola co.
The Bottle
r
The Customer
The Consumer
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Marketing Organisation Sturcture
The organization structure plays an important role in the function of an
enterprise.
Organization divides its task into small tasked which are assigned to various
sub units.
The state of mind high riding on confidence and determination has made Pepsi
the most professional body in the country.
Territory Team
TERRUUU
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TERRITORY
COCH
RA/DSMDISTRIBUOR
CUSTOMER
AccountDevelopmentCO Ordinator
TERRITORYDEVELOPMENTMANAGER
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Pepsi-Company Profile
Corporate Mission:
We shall operate in existing and new business, which capitalizes on the Pepsi Cola
brand as our corporate image of reliability and integrity. Our objective is to delight
the customer both in India & abroad. We shall achieve this objective through
continuous improvement in quality and customer service. We shall strive for
excellence by nurturing, enveloping and empowering our employees and suppliers.
We shall encourage an open atmosphere conducive to learning and teamwork.
Corporate shared values:
Managing customer relationship
Commitment to improved customer satisfaction
Flexibility
Added value
Looking for opportunities
Passion for our customers
Customer service guidelines
Understanding
Commitment to quality
Honesty and integrity
Learning organization
Openness and transparency
Prospective care and concern for people
Team work
Trust
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History of PEPSICO.
Caleb Brad ham, invented Pepsi cola in 1898, in his pharmacy lab. The original Pepsi
bottling plant is located in New Bern, USA.
The original name of Pepsi-cola was “Brand’s Drink”. Created in the back of a
pharmacy. Caleb Brad ham turn the century by finding the Pepsi cola in Bern, who
was N.C. druggist. Today Brand Pepsi and other Pepsi cola North America product –
including Diet Pepsi, Pepsi-one, Mountain Dew, Slice and Mug brand account for
nearly one third of total soft drink sales in the united states, A consumer market
totaling about $56 billion. Pepsi-cola beverages are available in about 170 countries.
Pepsi-cola North America also makes and markets ready to drink iced tea and coffees,
respectively, via joint venture with Lipton. PepsiCo. Inc. is among the most successful
consumer product companies in the world, with 1998 revenues of over $22 billion and
1,51,000 employees. The company consists of: -
Pepsi-Cola Company, the world’s first largest beverage company.
Frito-Lay Company, the world largest manufacturing and distributor of
snacks chips
Tropicana Products, Inc., the world largest marketers and producer of
branded juices.
Pepsi-Co, Inc. was founded in 1965 through and the merge of Pepsi-cola
and Frito-lay. Tropicana was acquired in 1998. PepsiCo’s success is the
result of superior product, high standard of performance, distinctive
competitive strategies and the high integrity of our people.
However it took 5 years to trade mark of product. The present logo in
block letter is a result of modification in the original logo, which was in
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elaborate script form.
The logo was changed from an elaborate script to the modern block letter on the 1970
Pepsi label. Several different logos have been used. Until 1951, the word Pepsi and
cola were separated by 2 dashes. These bottles are called double dash. In 1951 the
modern logo with a single hyphen was introduced. All type of advertising
memorabilia are collected and reproduction are being made. These bottles are called
dash. The birthplace of Pepsi is located in historic New Bern, North Carolina.
The Brand owned by the Pepsi-co. is: -
Brand FlavorSize
Pepsi Cola 200,300,600,1500,2000
Mountain dew Lime 200,,600,
Mirinda Orange 200,300,600,1500,2000
Lime 200,300,600
7 up Clear lime 200,300,6001500
Slice Mangola 200,250,600
Aquafina Purified water 1000,5000
Lehar soda 300
Soda pet 600
PepsiCo. North America (PCNA) manufactures concentrates of “Pepsi-cola beverage”
such as PEPSI, PEPSI-COLA, DIET PEPSI, PEPSI ONE, MOUNTAIN DEW,
SLICE MUG, FRUITWORKS and SIERRA MIST for sale to franchised bottler’s in
the United States and Canada.
PepsiCo international (PCI) manufacture concentrates of PEPSI-COLA, DIET,
PEPSI, PEPSI ONE, PEPSI MIX, 7UP, MIRINDA, KAS, MOUNTAIN DEW, and
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other brand for sale to franchised bottles outside of the United States and Canada.
The Pepsi/Lipton tea partnership, a joint venture of PepsiCo and Unilever N.V. sells
tea concentrate to Pepsi-Cola bottlers, and develops and markets ready-to-drink tea
product under the Lipton trademark, including Lipton Brisk and Lipton’s ICED Tea.
PepsiCo’s partnership with the starbucks Corporation develops ready-to-drink coffee
products, which are sold under the starbucks Frappuccino trademark and are
distributed by Pepsi-cola bottlers. PCNA also licenses the processing and distribution
of Aquafina bottled water. In addition, PCNA manufactures and sells DOLE juice
drinks for sale and distribution by Pepsi-cola bottlers.
PepsiCo’s Tropicana Product, inc. (TPI) Produces, markets, sells and distributes its
Product under such sell-known trademark as Tropicana Pure Primium and Tropicana
Twister juice beverage products and Tropicana Pure Propics 100% juice products. It
also manufacture and sell Frui’vita Juice, Looza nectars and juice, Copella fruit juice
and Alvalle soups and fruit juice in Europe. Principal international market includes
Belgium, Canada, France, and the United Kingdom.
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PepsiCo’s Frito-Lay North America (FLNA) manufactures, markets, sells and
distributors a varied line of salty and sweet snacks food throughout the United states
and Canada, including Lay’s and Ruffles brand potato chips, Doritors and Tostitos
brand tortilla chips, Cheetos brand cheese-flavored snacks, Fritos brand corn chips,
Rold Gold brand pretzels, Wow! Brand low fat and no fat versions of potato and
tortilla chips, Sunchips brand multigrain snacks, a variety of branded dips and salsas,
Grandma’s brand cookies and Cracker Jack brand candy-coated popcorn. Flana also
sell and distributes OH BOY! OBERTO brand meat snacks under an agreement with
the Oberto sausage company.
PepsiCo’s Frito-Lay international (FLI) sell a variety of snack food product which
appeals to local taste including, for example, SABRITAS brand snack food in
Maxico, WALERS brand snack food in the United Kingdom, SMITA’S brand snacks
food in Australia, and GAMESA brand cookies and ALEGRO brand sweet snacks in
Mexico. In addition, many of U.S. brand, such as LAY’S, FUFFLES, DORITOS,
TOSTITOS, CHEETOS brand salty snacks foods have been introduced
internationally. Principal international markets include Mexico, The United Kingdom,
Brazil, Spain, The Netherlands, Australia and South Africa.
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PRODUCT PROFILE
PRODUCT
A product is a set of tangible physical attributes assembled in an identifiable form.
Each product carries a commonly industrial descriptive name. William J. Stanton
described the product, as a set of tangible and non-tangible attributes including
packaging, colour, price, manufacturer’s prestige, retailer’s prestige and manufacturer
and retailer services, which the buyer may accept as offering, wants satisfaction.
Coca cola has many products, which are categorized in to 2 groups namely
Carbonated soft drinks.
Packaged water.
Carbonated Soft Drinks:
Pepsi cola has carbonated soft drinks in 2 varieties, i.e. Colas and flavors. The core
brands of coca cola are
Pepsi
Mirinda
Mountain dew
7up
Slice
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Pepsi:
Pepsi is carbonated soft drink in strong cola flavour, seeing its popularity in India.
It’s available in 2 types of packaged sizes, single-serve and multi-serve. The
packaging is glass, plastic and cans, which may be returnable or non-returnable.
Miranda:
Miranda is carbonated soft drink in Orange and lemon flavour which is sold in more
then 150 countries. It is most recognizable brand in the world. It’s available in 2
types of packaged sizes, single-serve and multi-serve. The packaging is glass, plastic,
and cans which may be returnable or non returnable.
Mountain dew:
Mountain dew is carbonated soft drink in orange flavour which is sold in more then
100 countries. It’s available in 2 types of packaged sizes, single-serve and multi-
serve. The packaging is glass, plastic, and cans which may be returnable or non
returnable.
7up:
7up is carbonated soft drink. It’s available in 2 types of packaged sizes, single-serve
and multi-serve. The packaging is glass, plastic, and cans which may be returnable or
non returnable.
Slice:
Slice is mango flavored pulp juice best selling in India. It is recently taken over by
Pepsi cola to enhance the variety in its product line. Slice is available only in single
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served glass package returnable in nature.
Packaged Water:
Pepsi cola has introduced mineral water with the brand name Aquafina. This is
available in plastic package of different size.
Product grouping:
The products of Pepsi cola India are divided in to 7 stock keeping units. These are
volume based stocks and are as follows:
300ml 600ml 1.5 lit.
1 lit. 200ml 2 lit.
Can pack of 330ml
Product Characteristics.
Distribution is the most important as the product is fast moving and 100% perishable
(30-60). Due to non-availability, some other brand is sold and a unit sale is lost.
Package is returnable and is valuable to breakage. Unlike other consumer product
where the package need not be returned, the soft drinks bottle has to be relieved at the
point.
The demand for soft drinks shoot up during the summer season and the distribution
and production system would be very active. But during the winter season and rainy
season (off season) the demand would be very low as compared to the summer
season, hence a large number of personnel, vehicles, production capacity and all other
inputs are partially idle.
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Weight of the package i.e. bottle is twice as much as that of the product which it
holds. The demand for soft drink is impulsive, in the sense that people feel like
having soft drinks when they look at it. This is the reason for giving much
importance to display.
Demands highly intrusive availability with a very low dealer index.
Population in the town
Dealer index = ________________________
No. of dealers in the town
Lower dealer index indicates greater number of retailers in the town. Once the
retailers are more in numbers it is obvious that the product is available at more
number of outlets. Nowadays more emphasis is given to activation of new outlets,
which ultimately lead to a very low dealer index.
Occupies more shelves per rupee investment than any other consumer products. This
factor coupled with the retain ability of package requires high level of service
frequency.
Rate of distribution cost is more compared to the other consumable consumer
products. Due to the size of the bottle and the cases with which the products have to
be transported to the market makes the distribution cost high. In almost all other
branded consumer products the distribution cost is much lower than in comparison to
the soft drinks industry.
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All these points add to the fact that penetration distribution net work coupled with
efficient feeding are the only means to higher sales. Display and advertisement are
widely used to increase the demand for the product where as maintenance of
sufficient stocks and serving the drink chilled is for satisfying the increased demand.
Product Quality
The product here is non-durable. Hence it has to be consumed fast, purchased
frequently, made available in many locations and advertised heavily to induce brand
preference. Soft drinks are usually bought on impulse, therefore they should be
available at many places, because the consumer do not normally look for it and do not
stick to a particular brand. Product quality is one of the major product-positioning
tools. Quality stands for the rated ability of the brand to perform its functions. One
of the fundamental reasons for a good and healthy growth of market share of the
product in the potential market is the quality of the product. Every product will have
tangible attributes such as quality level, feature and styling. To increase the sales and
hence the market share, quality might be lowered or raised, features might be added or
withdrawn and the styling might be changed.
In the soft drink industry the tongue of the consumer is the final instrument in testing
the quality of the product. A sip of the product and the quality is known, image and
reputation of the product is either build or tarnished. Therefore, in consumer
consumable products great care and importance should be given to the quality of the
product.
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Problems
The product i.e. the soft drink has to be consumed at the point of purchase and
package is to be returned to the retailer, which is collected for refilling.
The second problem with the soft drink package is that it is easily breakable. During
bottling of the carbonated drinks nearly 30 crates get broken daily.
Thirdly each retailer has to deposit Rs. 5 per bottle which many retailers are reluctant.
As the bottle has to be returned for refilling, it increases the distribution cost and
hence the cost of the product. The bottles collected have to be washed against which
is done in a fully automatic machine.
Packaging
After the product quality, packaging of the product has its due share in attracting the
consumer and hence increases the market share. Proper packaging performs
The function of advertising, retailing, selling and reminding the brand of the product
to the customer. Most important aspect of packaging is it’s after use of or reusability
of the package. Companies are now paying more attention to the consumer’s growing
concern and interest in packaging. Packaging of paints in large buckets and ghee in
reusable cans etc. is the result of innovative packaging pursued by the companies.
The new pet pack of 500ml, 1.5 liters and 2 liter and 3 liter of soft drinks is a part of
this.
Packaging cost per unit in the soft drink industry is the highest of all the consumable
products. The product in the soft drink industry needs secondary packaging in the
form of plastic cases. The result is, increase in distribution cost and reduction of the
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retailer’s interest to keep large stock as it occupy considerable portion of the storage
area.
Pricing Policy
The price of a product or service is a major determinant of the market demand for the
item. Price affects the firm’s competitive position and its share of the market. As a
result, price has a considerable bearing on the company’s revenue and profit.
One of the psychological aspect of pricing is consumers rely on price as an indicator
of a product quality especially when they make purchase decision with incomplete
information. Studies have shown that consumers’ perceptions of product vary directly
with the price. Thus the higher the price, the better the quality is perceived to the
consumers make this judgment particularly when no other clues as to product quality
are available. Consumers’ quality perceptions
Can of course also be influenced by company’s reputation, advertising, and other
products to attract other products in exchange.
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PROMOTIONAL POLICIES OF THE COMPANY
Sales Force Management
Most companies use salesman and many companies assign them the pivotal role in the
marketing mix. The high cost of this resource calls for the effective sales
management process consisting of six steps, say, establishing sales force objectives,
designing sales force strategy, size, and compensation recruiting and selection,
training, supervising and evaluation.
As an element of the marketing mix, the sales force is very effective in achieving
certain marketing objective and carrying on certain activities such as prospecting
communication, selling and servicing, information gathering and allocating under the
marketing analysis and planning in addition to the traditional skills.
Once the sales force objective have been decided, strategic answer to the questions of
what type of selling would be most effective, what type of sales force structure would
work best (territorial, product or customer structured), how large the sales force
should be how they should be compensated in terms of pay level and pay components
such as salary, commission, bonus, expenses and other fringe benefits.
Sales force must be recruited and selected care fully to hold down the high cost of
hiring the wrong persons. Training program familiarize the sales people with the
companies history, it’s products and policies, the characteristics of the market,
Its competitors and the art of selling. Prospecting qualifying pre approach,
presentation and demonstration, handling objections and continuous encouragement
because they must make many decisions and handle many things, which are subject to
frustrations. Periodically the company must evaluate their performance to help them
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better their job.
The sales man
The job of sales man is to call upon the dealers regularly on fixed dates and time,
which is basically “servicing” the dealers. Therefore job of this sale person is
different from that of other consumer firms where the advantages and disadvantages
of the product have to be canvassed and sold. Here the demand is created through
various media and advertising both at national and local levels. The sales man job is
there for to service all the dealers regularly.
Basic activities
The soft drink sales man is highly service minded and he is successful and affective in
his work as sales man. His job can be summarized in the following lines:
1) Visits each dealer on a fixed routine i.e. on fixed date at affixed time punctually so
that the dealer can anticipate his visit and be ready with empty cases and cash.
2) Services each dealer on the route by ensuring that all our products are in sufficient
quantities are stocked and displayed, therefore he refills the entire empty one and
suggests more deposits to ensure that the dealer will never be out of stock of any
flavor till the next visit. He must perform a vide variety of management functions
including planning, coordination, evaluation, negotiation, super vision and
investigation. He must be skilled in gathering information, defining problems and
ultimately taking actions himself on time.
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Advertising
Advertising consists of all the activities involved in presenting –to a group of
customers, orally or visually, openly sponsored messages regarding a product service
or idea. This message is called advertising and is disseminated through one or more
media and is paid for by the identified sponsor.
Advertising is an inevitable factor in any company to promote its product through
effective media like television, radio, flash lights, hoardings, dealers sign boards,
stickers, newspapers, magazines slide screens at cinema halls etc.
Advertising is one of the major tools used by the company to reach the target buyers
and public. It consists of non-personal mode of communication conducted through
paid media under a specific sponsorship program. The main objectives of advertising
are as follows:
1) To inform the consumer about the new product, uses of the product and how it
works through the advertising media in the form of television, radio, and
newspaper etc. introducing a new product in the market would be difficult as well
as uneconomical without advertising.
2) The second objective of advertising is to built brand preference, change consumer
perceptions of product, attitudes, and lastly encourages and persuades the
consumer to switch over to the company’s brand.
3) The third objective is to remind the consumer about the product/brand and where
to buy it.
4) Advertising in the firm of point of purchase material, demonstrations, conducting
the exhibitions and spending on the special events helps the sales man to increase
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the sales and also gain the confidence of retailers and dealers by showing that
company is doing its share of product promotion.
5) Personal selling sales promotion is other form of promotion. Perfect coordination
among three types of activities can maximize the total impact of advertising on the
consumer and product desired results for the product.
Advertising by Pepsi-cola
Coco-cola spends substantial amount for advertisements in local news papers, slides,
screening in cinema theaters, hoardings, wall paintings, special, dealers sign boards
and for conducting special events.
The soft drink companies, in order to promote there respective products utilize special
events. Special events establish goods reputation with the organization in particular
and public in general. They promote public relations which provides strong base for
sales and help the smooth running of the organization.
Special events provide an opportunity for directly participating in the public activities
and then the product is identified with the events. When people talk of the event, they
remember the product. Thus it strongly registers in the mind of the people.
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Participating in the special events and making them a success requires a lot of
planning and execution. The materials required usually for this purpose are:
Wall posters
Cloth banners
The plywood cut – out logos
Card board scorers
Boards and badges
Market Segmentation as done by the Pepsi cola.
The consumers are “all people in all walks of life every where”. In fact a consumer
could during a day, be in any or many of the segment. In the morning he could be
part of the ‘at-work’ market. In the office in the daytime while shopping, a part of the
“on-premise” market. In the evening, at a marriage reception of the ‘special events’
market and in the night during dinner a part of the “Home Market.”
The markets of coca cola can be classified into
1) On –Premise Market
This market is the most basic for the company and is serviced by the route trucks by
the bottling plants or by the agents in the territories of the agencies.
This is the segment where the company should concentrate the most at the start
because on – premise market also means entering to the market and home market. It
is the duty of Sales Manager/Executive to see that the dealer displays the company
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bottles, store boxes and ice boxes and give chilled product. The products of good
displays and dominant point of the purchase make consumers ask for company’s
product.
2) Teenage Market
As the youth will “consume the company product, largest” and hence the company
should develop this segment, through schools, colleges etc. It should pay special
attention to sports, annual events or youth festivals and also arrange plant visits for
student.
3) At work market
Any office that gets visitors would like to entertain them with tea, coffee or soft drink.
The company should see that its products are available in the offices so that it can be
served to their visitors in most of the offices and factories they provide subscribe
refreshment to their employees and here again the company should develop this
market by marketing the products available
So that as an when an employee requires a refreshment he would ask for the company
products.
Once the consumer gets the habit of consuming a particular soft drink in his place, he
normally carries the habit to his home or out side when he is out for shopping or in the
market place.
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4) Home market
This segment is somewhat difficult to explain because it requires considerable
distribution effort. One can make a beginning by appointing agents in residential
colonies to sell the soft drinks to home. This scheme is helpful to company
particularly during monsoon, when the consumer is not able to go out to consume the
product on the premises market segment. Guests to the home are entertained by the
house wives with soft drinks which become an indirect sampling to benefit the
company and increase the usage of company’s product.
5) Special event market
One should always be on the look and scout around with out forgetting orders for
important functions, parties etc. where the company can get orders for products.
Through parties and function company is positioning its product to many sections of
consumer and also doing an indirect sampling, which has high image and publicity
value. A special salesman to book special events orders could be appointed and thus
maximum numbers of functions can be covered. Wedding orders are huge and great
care should be taken prompt supply, service and reliability are very important words
in this segment.
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CHAPTER-4
DATA ANALYSIS
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Dealer Survey Data Analysis
Q. 1) Which is the Place of consumption?
Objective: To know the kinds of places of consumption
Place of consumption No of shops Percentage
Restaurant / Hotels 38 38%
Canteens 22 22%
Movie Halls 11 11%
Retails Outlets 29 29%
Total 100 100%
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Analysis:
38% of outlets of soft drinks are restaurant, hotels, etc.
29% of outlets of soft drinks are retail outlets.
The restaurants, hotels, sweet shops and retail outlets i.e. grocery shops
provision stores, etc. constitute 67% and are major sellers.
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Q. 2) How many cases you maintain at a particular time for a particular
company? Objective: To know the potential of outlets.
Case Strength Respondents Percentage
1-15 54 54
16-30 18 18
31-45 6 6
46 and above 22 22
Total 100 100%
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Analysis:
54% of the outlets maintain the case strength of the range 1-15 cases.
22% of the outlets maintain the case strength of the range 46 and above.
Analysis shows that major outlets fall in the range of 1-15 cases.
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Q. 3) How do you chill Soft Drinks?
Objective: To know the chilling equipment used in various outlets.
Equipment Respondents Percentage
Ice Boxes 2 2
Coolers 52 52
Refrigerators 42 42
EBC 4 4
Total 100 100%
Analysis:
52% of the outlets have visi – coolers.
42% of the outlets have refrigerators.
Only 4% have EBC for chilling the soft drinks.
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Q. 4) Which media is most effective for the awareness of brand?
Objective: To know the preference of dealers regarding media.
Mode of Publicity Respondents Percentage
Painting 42 42
Glow sign 12 12
Dealer’s Board 38 38
Neon Light 4 4
Banners 2 2
Total 100 100
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Analysis:
Highest is painting with 42% as it serves two purposes:
The retailer need not paint his outlet and helps in beautification of the place.
Secondly, it helps the company in creation of goodwill with the retailers.
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Q. 5) What vehicle visiting frequency do you prefer?
Objective: To know the dealer’s preference of visits of vehicle.
Frequency Respondents Percentage
Daily 8 8
Alter. Day / Twice a Week 58 58
Weekly 34 34
Total 100 100
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Analysis:
58% prefer alternate day / twice a week visit of vehicle
32% prefer weekly visit of vehicle.
More frequent visits help dealers in availing schemes, which are of short duration.
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CONSUMER SURVEY DATA ANALYSIS
Q- 1) Gender : Male / Female
Objective: To know the gender of consumer.
Gender Respondents Percentage
Female 84 42
Male 116 58
Total 200 100%
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Analysis:
58% of the consumers are male.
42% of the consumers are female.
Female consumers mostly prefer flavoured drinks other than cola.
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Q. 2) What is your age?
Objective: To know the age of consumers so that suitable advertising and punch
line can be made chilling equipment used in various outlets.
Age Respondents Percentage
Below 15 10 5
15 -25 102 51
25-40 52 26
40 and above 36 18
Total 200 100%
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Analysis:
51% of the consumers are between the ages of 15 to 25.
26% of the consumers are between the ages of 25 to 40.
Majority of the soft drinks consumer is in the age group of 15 to 40 years.
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Q. 3) What is your qualification?
Objective: To know the educational qualification of the consumers.
Education Respondents Percentage
10th and below 10th 56 28
10 + 2 26 13
Graduate 84 42
Post Graduate 34 17
Total 200 100%
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Analysis:
28% of the consumers have educational qualification of 10th or below.
42% of the consumers are graduates or doing graduation.
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Q. 4) How often do you purchase soft drinks?
Objective: To know the frequency of consumption / drink age of soft drinks.
Duration Respondents Percentage
Regular 36 18
Twice a Week 80 40
Thrice a Week 50 25
Occasionally 34 17
Total 200 100%
Analysis:
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40% of the consumers drink soft drinks twice a week.
18% of the consumers drink soft drinks regularly.
It will take time for soft drinks to become a regular drink in the Indian market.
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Q. 5) Why do you consume a particular drink?
Objective: To know about the influencing factor other than advertising that makes
them buy soft drinks.
Factors Respondents Percentage
Taste / Flavour 140 70
Availability 24 12
Packing - -
Price - -
Any other 36 18
Total 200 100%
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Analysis:
70% of the consumers drink soft drinks because of the taste.
18% of the consumers drink soft drinks for quenching thirst.
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Q. 6) Which flavour do you like in soft drinks?
Objective: To identify the favou rate flavour in the soft drinks market.
Flavour Respondents Percentage
Cola 128 64
Orange 36 18
Lemon 16 8
Mango 20 10
Total 200 100%
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Analysis:
Market is been dominated by Cola drink which is 64% of the total.
Second is the orange flavour with 18% consumption.
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Q. 7) Which brand you like more in cola segment?
Objective: To know the brand preference in the cola segment.
Brand Respondents Percentage
Pepsi 96 48
Thumps up 72 36
Mirinda 32 16
Total 200 100%
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Analysis:
Pepsi is the market leader with 48% share in the cola segment.
Total share of Pepsi Cola in cola segment is 64% which is tremendous.
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Q. 8) How do you come to know about soft drinks and it variety?
Objective: The consumer’s availability, to recognize and to locate brands.
Media Respondents Percentage
Sports Events sponsorship 18 9
POP 66 33
Advertising 104 52
Hoardings / Boards 8 4
Any other (Friends) 4 2
Total 200 100%
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Analysis:
50% of the consumers come to know about the soft drinks through advertising.
Hence the expenditure on advertising is worth.
Second rank is recognition at the point of purchase.
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Q.9) Which companies advertising do you like?
Objective: To know the relative effectiveness of advertising of Coca Cola vis-à-
vis Pepsi.
Views Respondents Percentage
Pepsi 108 54
Coco Cola 92 46
Total 200 100%
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Analysis:
54% of the consumers like the advertisements of Coca Cola in comparison
to 46% of Pepsi which fluctuates whenever a new ad comes.
Mass appeal of SRK, Kareena Kapoor, Priyanka Chopra, Salman Khan,
Akshay Kumar really works in advertising.
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Findings of Dealer’s Survey and Consumer’s Survey
Pepsi has a good market in the NCR Delhi Region with 45% market share. This
share some time rises up to 50% when there are lucrative schemes like “FOOD
AND FIZZ”, SPACE CLUB 06.
The distribution network of Pepsi Cola is the most efficient network. The dealers
are happy with the visiting schedule of the vehicle of Pepsi Cola.
The coverage of advertising of Pepsi Cola is very good
The most popular flavor in the market is Pepsi, which accounts for 50% of the
market.
Before buying a soft drink, consumers are giving first preference to the taste and
the taste of Pepsi Cola products is refreshing and most popular.
Soft drinks consumption is more among younger generation.
The consumption patterns reveal that soft drinks consumption is more in canteens
and restaurants than in home segment.
The study emphasizes the importance of Sales Promotion in today’s scenario.
Sales Promotion bolsters or complement other elements of the promotional mix
during a specific time period.
Sales Promotion requires a lot of creativity. Sales Promotion needs to be
innovative in order to get customer’s attention. Marketers have to find what
consumers want and than accordingly plan a promotion.
Customers prefer those schemes wherein the benefit is realized at the time of
purchase or as early as possible. Maximum consumers are inclined towards price
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deals rather than gifts and this shows that Indian market is still very much price
sensitive.
In the survey conducted it is found that coupon is the most preferred tool of Sales
Promotion among the consumers of cold drinks. So it is recommended that
company’s in the cold drink industry come out with more creative and innovative
coupon schemes for the consumers which would definitely help in motivating and
influencing the consumer resulting in immediate sales.
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Chapter-5
CONCLUSION & RECOMMENDATIONS
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Conclusion
The primary focus of this study was to understand the consumer and the company’s
policies to serve the consumer. During the study other than questions asked, some
important fact also came to light, which are as follows:
Soft drinks market is seasonal as the sale shoots up in the months of summer
season.
The distribution function in the soft drink industry is the most important function
as unavailability means loosing.
Soft drinks are impulsive so merchandising functions also become points of
primary focus.
The fierce competition between PepsiCo and Coca Cola has made the retailers to
enjoy the situation.
The Market Share fluctuates every time with different schemes.
Commitment has become an important word in the market.
The situation of brand loyalty is not yet seen in the said market. But brand loyalty
is high in the case of kids and the people in the age group of 20 to 30 years.
Some materials like battery particles, bits of sachets, etc. have often being seen in
the bottle, which gives a bad name to the company.
Market presence of PepsiCo. With the combination of superior advertising makes
it a popular drink. Today PepsiCo bottle is found in every region / area.
In border areas, cases from other states enter into the markets, which are at
cheaper rates.
POP material is dispatched to a central place.
The painting coverage of Pepsi Cola is not uniformly i.e. some areas are very dry
where there is all over only Cola Cola’s paintings.
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During rainy season the secondary package of the pet bottles are damaged very
easily.
Consumers are shy of asking free products. The free schemes have not really
penetrated into the market.
Youth market is very much affected by the cricketers and Cinema Stars coming in
the advertising, as people follow them as role models.
Price charged by the retailers depends upon the local area and the type of outlet
where it is sold.
Some outlets are given card discount
Salesman regularly attends the small as well as big outlets.
In the different office channel, Pepsi cola and other soft drink are not of great
demand. Most of them are dry.
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Recommendations
Soft Drinks market is impulsive market. So the bottom line is “Jo Dikhta Hai Who
Bikta Hai” so priority should be given to display and product placement and the entire
salesman should follow it strictly as per the Plano gram and 8 steps of call.
Salesman should be properly educated about the product. There are a lot of
unemployed graduates in the market. Conveying the message that it is the first
step in their career development should attract them. They should be properly
trained according to the requirement.
Commitment is an important word in the market so care should be taken about
false commitments. The relationship and goodwill, all because of words spoken,
so it is better to keep quite than giving false commitment.
Schemes should be in the form of tangible gift items and it should reach directly
to the retailers and consumers.
The rate of product should be same in all the states.
The distribution of wall paintings should be uniform and in accordance to the
potential of the market.
POP material should be directly sent to individual distributors.
There should be some short local promotional programs in local events, near
cinema halls, school and college events, as it helps in building brand image.
Promoting the sell in different office channel galore in NCR Delhi Region.
Company should come up with better scheme to attract their Adm. as well as
employees.
Officer should monitor the service frequency strictly.
Sales promotion scheme should be reached to each and every outlet before it
started.
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Generally it was found that visi were in the corner of the outlets. so many do not
come to know product availability of Pepsi product. So it must be at prominent
place.
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Limitations of the Study
The information required in the project was essentially gathered through questionnaire
method and company manuals etc. that had certain limitations. The following points
broadly give the limitations faced during the project:
Time Constraints
The research was completed in one and half months. NCR Delhi Region being a large
area, to cover the whole of NCR Delhi Region in the absence of good mode of
transportation within the allocated duration was difficult. The difficulty was also
because most of the time of the project was spent in penetrating the market itself.
Budgetary Constraints
The research was to be completed in the allocated budget, which is one of the
limitations in obtaining the required objective.
Low Response
The level of interaction with the respondent was not as high as expected due to their
ignorance.
Frame of Mind
Mindset of people towards the survey was also an obstacle in acquiring complete
information and positive interaction.
Natural Bias
Natural Bias of respondents if often a cause of limitations in many inquiries.
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Authentic Information
There was no way to check the authenticity of the information given by the
respondents and thus had to be accepted as genuine.
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BIBLIOGRAPHY
AUTHOR TITLE PUBLISHER EDITION
Company Manuals PepsiCo.
Kotler Philip Marketing
Management
Prentice Hall Tenth
William J.
Stanton
Fundamentals of
Marketing
Mc Graw Hill Tenth
Kothari C. R. Research
Methodology
Vikas
Publishing
Third
Revised
Sarwate Dilip Market Research Everest
Publication
Third
www.pepsico.com
www.pepsiworld.com
Pepsilineyahoo.co.in
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APPENDIX
Questionnaire for Retailer
1. Name: __________________________________________________
2. Age: __________________________________________________
3. Sex: __________________________________________________
4. Education: __________________________________________________
5.Place of Shop: __________________________________________________
6. Different brands you sell and specify the time period
a) _____________________________________________________________
b) _____________________________________________________________
c) _____________________________________________________________
d) _____________________________________________________________
e)_____________________________________________________________
7. Case Strength you maintain at your shop
a) _____________________________________________________________
b) _____________________________________________________________
c) _____________________________________________________________
d) _____________________________________________________________
8. The Chilling process of the drinks in your shop
a. Ice Box c. Visual Cooler
b. Refrigerator d. E.B.C.
9. Which company’s brand has maximum sale in your shop?
a. Coca Cola c. Godrej
b. Pepsi d. Local
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10. Will you please state the reason for more sales of a brand?
a. Your preference c. Consumer’s choice
b. Advertisement d. Any other (Specify)
11. If you prefer, why so?
a. More Profits c. More Services
b. Good Service d. Any other (Specify)
12. The Frequency of service you prefer
a. Daily c. Alternate Days
b. Weekly d. Fortnightly
13. What type of sales promotion you prefer?
a. Painting c. Banner
b. Glow Sign Board d. Neon Lights
14. What is the % Market Share offered by each brand?
a) _____________________________________________________________
b) _____________________________________________________________
c) _____________________________________________________________
d) _____________________________________________________________
15. What is the profit margin of different products of soft drink?
a) _____________________________________________________________
b) _____________________________________________________________
c) _____________________________________________________________
d) _____________________________________________________________
16. What steps you take to improve awareness of a particular brand?
_______________________________________________________________
17. Which product of Pepsi Cola is sold more?
a. Pepsi c. Miranda
b. Mountain dew d. Slice
18. Which pack has more demand?
a. 200 ml c. 600 ml
b. 1000 ml d. 1500 ml
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e. 300ml
19. When and why does sale improve (scaling)
a. Sponsorship of events / sports
b. Season / Weather
c. Advertising
d. Schemes
20. Specify the age group and sex of consumers of these flavours
a. Pepsi ________________ e. Mountain dew______________
b. Miranda ________________ f. Slice _______________
c. 7 Up________________ d. Soda ________________
21. Suggestions, if any.
_______________________________________________________________
_______________________________________________________
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QUESTIONNAIRE FOR CONSUMER
1. Name: __________________________________________________
2. Age: __________________________________________________
3. Sex: __________________________________________________
4. Education: __________________________________________________
5.Occupation: __________________________________________________
6. Family Income: __________________________________________________
7. Which flavour you like the most
a. Cola c. Mango
b. Lemon d. Orange
e. Soda
8. Which company’s product you like?
a. Coca Cola c. Godrej
b. Pepsi d. Local
9. Where do you consume a soft drink?
a. Restaurant c. Canteen
b. Cinema Hall d. Retail outlet
e. Home
10. How do you come to know about a particular brand?
a. Advertisement c. Hoardings
b. Point of Purchase d. Special Events
e. Any other (Specify)
____________________________
11. How often do you consume Soft drinks?
a. Regular c. Thrice a Week
b. Twice a Week d. Occasionally
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12. Which package you feel is the best for soft drinks?
a. Glass Bottle c. Pet Pack
b. Can Pack d. Tetra Pack
13. Which volume pack do you prefer purchasing
a.200 ml c. 600 ml
b. 1000 ml d. 1500 ml
e. 300 ml can
14. Why?
_______________________________________________________________
15. Which company’s product were you consuming earlier?
a. Coca Cola c. Godrej
b. Pepsi d. Local
16. Why did you shift to other brand?
a. Taste c. Availability
b. Packing d. Any other (Specify)
e. Economy ______________________________
17. What in particular do you like in the drink you consume currently?
a. Taste c. Availability
b. Packing d. Any other (Specify)
e. Economy ______________________________
18. Do you feel there is any difference between products of Coca Cola and
Pepsi?
a. Yes b. No
19. If yes, can you state some differences?
_______________________________________________________________
_______________________________________________________________
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20. How are you instilled to consume a soft drink?
a. Influence of friend’s c. own choice
b. Events / occasion d. any other
_________________________________
21. What is your view on the advertising of Coca Cola when compared to
Pepsi?
_______________________________________________________________
24 What are your valuable suggestions to Pepsi Cola Co. with regard to?
a. Coke _________________________________________________
b. Taste _________________________________________________
c. Advertising _________________________________________________
d. Promotion _________________________________________________
e. Any Other _________________________________________________
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