PR

PROJECT REPORTON

A STUDY OF“BRAND PERFOMANCE OF SOFT DRINKS”

IN UDAIPUR CITY

SUMITTED IN PARTIAL FULFILLMENT FOR DEGREE OF MASTER OF BUSINESS ADMINISTRATION

YEAR: 2009-11

PIONNER INSTITUTE OF MANAGEMENTAFFILIATED TO

RAJASTHAN TECHNICAL UNIVERSITYKOTA (RAJ.)

SUBMITTED BY GUIDED BY BHIM RAJ MEHTA MISS. KIRAN VAZIRANIM.B.A SEM. IV

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Preface

The beverages sector in India is one of the largest in terms of production,

consumption, export & growth prospects. These are two major sectors in the

beverages industry, i.e. Alcoholic Sector & Non Alcoholic Sector.

The purpose of this project is to find out the factors that affect the choice of

consumers when they purchase soft drinks (Non Alcoholic Beverages), the

brands preferred by the consumers for different flavors & about the

consumption pattern for different soft drinks.

Chapter one includes the introduction of the beverage industry framework of

India beverage industry & explains in detail about the non alcoholic

beverage sector.

Chapter two contains objectives of the research study & the research

methodology used for the project.

Chapter three also includes the analysis & interpretation of the research

study.

Chapter four has various finding, conclusion & suggestions.

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Acknowledgement

Firstly, I thanks the all mighty by the grace of whom. This report was

undertaken and duly completed in time.

I take the opportunity to express my profound sense of gratitude and sincere

indebt ness to Miss. KIRAN VAZIRANI, under sympathetic, pains taking,

and kind guidance of whom, I was able to complete this repot.

I am grateful to Director of our institute Dr. G.P.Bisaria who enabled me to

complete this report through their king guidance all the time.

I am very thank full to all the faculty member of the institute who helped me

a lot in it interpretation of date regarding my report without which this work

would never be completed.

I am also thankful to my parents who helped me morally and financially in

completion of this report.

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Executive summary

Soft Drinks Bounces Back

After a somewhat subdued performance in 2006 due to a recurrence

of the pesticides controversy, soft drinks sales bounced back strongly to

record double-digit volume growth in 2007. With carbonates growth back on

a positive upward curve alongside burgeoning sales of fruit/vegetable juice

and bottles water, soft drinks showed impressive growth in 2007. Off-trade

volumes grew slightly faster than on-trade volumes, driven by higher

consumption of packaged and branded soft drinks at home and on the go.

The emergence of supermarkets/hypermarkets, heavy consumer

promotions and various new product launches played a key role in driving

off-trade volume growth.

Bottled Water and Fruit/vegetable Juice Continue to be Star

Performers

Soft drinks sales in 2007 were propelled by bottled water and

fruit/vegetable juice with their healthier positioning helping to drive sales of

soft drinks. While carbonates posted single-digit growth in 2007, rebounding

from the pesticides controversy of 2006, it was bottled water and

fruit/vegetable juice that stormed ahead with high double-digit growth rates.

Poor municipal infrastructure for tap water has pushed sales of bulk

packaged water to households. Fruit/vegetable juice is growing as a result

of increased consumer expenditure on naturally healthy (NH) beverages.

While functional drinks and RTD tea also posted impressive growth in 2007,

they were growing from a very small base and are yet to achieve a critical

mass in terms of establishing a loyal consumer base.

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Coca-Cola India and PepsiCo India slip in shares

With consumers showing a growing preference for healthier soft

drinks such as bottled water and fruit/vegetable juice rather than carbonates

in 2007, the two carbonates giants suffered a marginal decline in share.

Although both players embarked on a change in strategy to focus more on

non-carbonated soft drinks in their portfolios, they were unable to maintain

share and lost out slightly too home-grown players Parle Bisleri and Dabur

India. Coca-Cola India launched Minute Maid and pushed the sales of its

juices while PepsiCo India heavily promoted Tropicana, Aquafina and

Gatorade during 2007. In addition, Coca-Cola India and PepsiCo India

embarked on re-branding themselves as total beverage players and not just

carbonates players.

Booming Modern Retail Brings Many Opportunities for Soft Drinks

Players

With the retail scene in India undergoing a rapid metamorphosis with

the establishment of supermarkets/ hypermarkets and convenience stores,

soft drinks sales have benefited positively. People in urban areas are

increasingly flocking to supermarkets to pick up specialty items that are not

available in the kirana stores that are found all over India. Modern retail

outlets have provided soft drinks players with many opportunities to push

their brands. Consumer promotions for fruit/vegetable juice and emerging

sectors such as RTD tea and functional drinks are driving product sampling.

Attractive point-of-sale (PoS) displays and gift packs of concentrates are

also drawing consumer attention in supermarkets/hypermarkets.

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Healthy Drinks to Drive Forecast Growth

Soft drinks is expected to post a strong performance on the back of

increasing affluence amongst consumers and evolving lifestyles which lead

to consumers devoting less time to preparing fresh food and drink at home.

Competition from the unorganized sector will diminish gradually as

consumers show greater aversion to buying unpackaged and unbranded

soft drinks from street vendors due to health and hygiene concerns. Rising

health consciousness is also expected to drive sales of naturally healthy

(NH) soft drinks such as 100% juice and mineral water. In addition, soft

drinks such as sports drinks and juice-based carbonates are also expected

to fare well over the forecast period as consumers perceive them to be

healthy.

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CONTENTS

1) Preface…………………………………………………………..

2) Acknowledgement……………………………………………....

3) Executive Summary……………………………………………..

4) Introduction……………………………………………………..

5) Company Profile……………………………………………….

6) Research Methodology………………………………………...

7) Data Analysis & Interpretation………………………………..

8) Conclusion & Recommendations………………………………

9) Appendix……………………………………………………….

10) Bibliography……………………………………………………

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7

PROJECT BACKGROUND

-BEVERAGE MARKET

The Indian Beverage Market

India’s one billion people, growing middle class, and low per capita

consumption of soft drinks made it a highly contested prize in the global

CSD market in the early twenty-first century. Ten percent of the country’s

population lived in urban areas or large cities and drank ten bottles of soda

per year while the vast remainder lived in rural an eras, villages, and small

towns where annual per capita consumption were less than four bottles.

Coke and Pepsi dominated the market and together had a consolidated

market share above 95%. While soft drinks were once considered products

only for the affluent, by 2003 91% of sales were made to the lower, middle

and upper middle classes. Soft drink sales in India grew 76% between 1998

and 2002, from 5,670 million bottles to over 10,000 million and were

expected to grow at least 10% per year through 2012.2 8 In spite of this

growth, annual per capita consumption was only 6 bottles versus 17 in

Pakistan, 73 in Thailand, 173 in the Philippines and 800 in the United

States.

With its large population and low consumption, the rural market

represented a significant opportunity for penetration and a critical

battleground for market dominance. In 2001, Coca-Cola recognized that to

compete with traditional refreshments including lemon water, green coconut

water, fruit juices, tea, and lassi, competitive pricing was essential. In

response, Coke launched a smaller bottle priced at almost 50% of the

traditional package.

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INDIAN HISTORY

India is home to one of the most ancient cultures in the world dating

back over 5000 years. At the beginning of the twenty-first century, twenty-

six different languages were spoken across India, 30% of the population

knew English, and greater than 40% were illiterate. At this time, the nation

was in the midst of great transition and the dichotomy between the old India

and the new was stark. Remnants of the caste system existed alongside

the world’s top engineering schools and growing metropolises as the

historically agricultural economy shifted into the services sector. In the

process, India had created the world’s largest middle class, second only to

China.

A British colony since 1769 when the East India Company gained

control of all European trade in the nation, India gained its independence in

1947 under Mahatma Ghandi and his principles of non-violence and self-

reliance. In the decades that followed, self-reliance was taken to the

extreme as many Indians believed that economic independence was

necessary to be truly independent. As a result, the economy was

increasingly regulated and many sectors were restricted to the public

sector. This movement reached its peak in 1977 when the Janta party

government came to power and Coca-Cola was thrown out of the country.

In 1991, the first generation of economic reforms was introduced and

liberalization began.

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STORY OF SOFT DRINKS

Segmentation of soft drinks:

The Soft drinks can be segmented on the basis of point of purchase

or on the basis of type of products. The story of soft drinks is fascinating,

since the beginning of life the most pressing needs of all living beings is

food & sweet juice when cut open, ditto the watermelon & fresh coconuts.

Man Learnt the Secrets of these Sources &used them as additional pleasant

aid drinks beside water. As year passed in thousands, man tried to imitate

nature in preparing these drinks so as to use them as well. As a result of

laborious Search in 1772, Joseph priestly combined carbon dioxide with

water & artificially produced arched water bubbling with gas spread quickly

& artificially produced arched water bubbling with gas spread quickly &

parched mouth begin to consume this.

The Segmentation on the basis of point of purchase divides the

market into two parts on premise 80% of the Consumption of Soft drinks is

done Premise i.e. restaurants, railway station, cinema hall etc.

At Home:

The rest of 20% of the market compromises of the soft drinks

purchased for consumption at home.

The market can also be segmented on the basis of products. The segment

could be as follows—

This account for 62% of the total soft drinks at all India level. The

brands that fall in this category are Pepsi, Thums up, Coke. Non-Cola

segment, which can be further, divided as orange. This segment has

19%share of the total market. Mirinda orange (of Pepsi) Fanta & and Gold

Spot (Both of Coke) & crush represent the orange segment.

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Lime:

This segment represents 14% of the total market. Coke’s Limca

&Pepsi’s Mirinda fall in this category.

The market leader is close to 70% market share of this segment but

sprite has considerably cut into this market. Mango, Slice Mangola & Maza

is the leading Mango drink. Mango Drinks account for about 3% of the soft

drinks market. There is very thin line of difference between the clear &

cloudy lime. The most obvious feature is that clear lime has to be bottled in

green bottles as sunlight harms the drinks & change the taste.

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THE INDIAN SOFT-DRINK INDUSTRY SCENARIO

Domestic firms in India, which once enjoyed the benefits of sheltered

markets, are increasingly facing competition from global giants in 1990s.

Sheltered market had once allowed Indian entrepreneurs to develop strong

brands that have held there own against the onslaught of the multinational

companies. Some domestic firms have chosen the strategy of tie-ups with

MNC’s. Others have tried to meet the competition head on.

Whatever route Indian firms take to deal with competition from MNC’s

it is imperative for them to keep track of global strategies of these firms.

Often the strategies undertaken at the local level are only part of the global

strategies, because it is difficult for any firm to allow significant differences in

approach in different markets.

Coca-Cola controlled the Indian market until 1977, when the Janta

Party beat the Congress party of then Prime Minister Indira Gandhi. To

punish Coca Cola’s principal bottler, a Congress party stalwart and long

time Gandhi supporter, the Janta government demanded that Coca Cola

transferred its syrup formula to an Indian subsidiary. Coca Cola backed and

withdrew from the country.

India now left without both Coca Cola and Pepsi became a protected

market. After Coca Cola made its exit from Indian market in1977, there was

a vacuum in the soft drink market, advantage was taken by Parle and Pure

drinks. Parley launched “Thumps Up” and gained a substantial and robust

market share.

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In 1977 with a change in the government at the centre led to the exit

of coke, which preferred to quit rather than dilute its equity to 40% in

compliance with the provisions of FERA, the first national cola drink to

emerge was Double Seven. In the mean time, Pure Dinks, Delhi, on Coke’s

exit switched over to Campa Cola, and, by the end of 1970s, Campa Cola

was practically alone in the Cola market.

Parle introduced Thumps Up in the beginning of 1980s, followed by

thrill by McDowell’s and Double Cola by Double Cola manufacturing

Company (DCMC)-an NRI-run outfit with its plant at Nasik. An additional

dimension to the Indian soft drink industry was that of fruit drinks, which

were valued at Rs. 40 Crores and among the brands in the market, the

leader was Parle’s Fruity with about 40% of the market share. The other

players in this segment who have posed challenges to Parle are

Godreg(with Jumpin) and Ahemdabad bases Pioma Industries’ Rasna Cola-

Cola.

Setup in 1949, by 1978, Parle led the Indian soft drinks market with a

share of 33%. Gold Spot and Limca were the clear winners, and later,

Thumps Up also started contributing to its growth. Thus, Parley touched a

market share of around 60% in 1990. However, with the arrival of Pepsi,

Parle’s share decreased to 53% and Pepsi quickly attained a market share

of about 20 percent.

Till 1990, Parle’s chief rival was Pure Drinks, which was steadily

losing out to Parley. After the arrival of Pepsi, the market share of Pure

Drinks further deteriorated. This was mostly because Pure Drinks had

smaller number of bottling plants and a limited distribution network – exactly

the same reason why Pepsi could not do much against Parle. Parle had 60

bottlers against Pepsi’s 20 and 2.1 lakh retailers against Pepsi’s 1.5 Lakh.

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Before 1992 , the Indian soft drink industry had not grown fast mostly

due to high excise duties and government encouragement of fruit drinks

over carbonated drinks. The Limca was largest selling brand of bottled soft

drinks in India, from consumers point of view ‘Cola’ was the most popular

flavor. It accounted for about 40 percent of the market. ‘Lime’ and ‘Lemon’

drinks followed with about 30 percent, and ‘Orange’ drinks had only about

20 percent of the market share. Carbonated soft drinks accounted for the

rest 10 percent. From 1984 to 1992, the Rs, 1,200 Crore Indian soft drink

industry grew at an average of 2.5 to 3 percent, the highest being 12.4

percent during 1984-1985.

Pepsi had begun its efforts in mid 1980s but only in 1990 it was able

to make an entry in the Indian Cola market. In early 1985, the then

government rejected a proposal with RPG GROUP. This involved the export

of fruit juice concentrate from Punjab in return for the import of Cola

concentrate. The deal offered was a 3:1 EXIM ratio.

The revised proposal made by Pepsi also met lots of resistance. The

strongest opposition to the proposal came from the food and civil supplies

ministry, which argued that India should be promoting fruit juices, not

carbonated soft drinks. Opposition also came from CSIR, one of whose

laboratories developed its own soft drink flavors. After more than 5 years of

acrimonious battles Pepsi was finally launched in India in June 1990. To

obtain the license for India, Pepsi had to export $5 of locally made products

for every $1 of materials imported, and it had to agree to help the Indian

government to initiate a second agricultural revolution. Pepsi has also had

to take on Indian partners. Pepsi Co, Punjab Agro Industries Co-Operation

(PAIC) and Voltas promoted the project.

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Pepsi had a very significant first mover advantage in the Indian

market. It did not have the condition of divestment of 49 per cent equity in

downstream ventures attached to it when it received permission to invest in

India. Pepsi had obtained the government approval for its downstream

ventures prior to the FD1 guidelines that made Indian equity holding

mandatory. Thus, in its original clearance, Pepsi was not only allowed to

hold 100 per cent equity .in its holding company but was also allowed to

carry out bottling and marketing operations.

The government approval, moreover, had allowed Pepsi to earn*

out acquisition of assets to expand its business in the country. Pepsi used

this clause in its approval to buy out 100 per cent stake in some of the

domestic bottling companies including its high profile buyout of Gujarat

Bottling Company, the former Coke franchisee in Ahmedabad. (Industry

ministry sources have clarified that while Pepsi would be required to seek

fresh government approval if it picks up shares in domestic bottling

companies as part of its portfolio investment, it does not need such

approval if the assets are acquired for expansion.)

There was now a triangular battle between Parle, Pepsi and Pure

Drinks. Pepsi launched 250 ml bottles in June 1990 to capture the 250 ml

bottle-market of Thums Up (launched in November 1989). As a

response, Thums Up ran ads downgrading Pepsi's taste and declared that

it was a fast drink. Thums Up entered the brand war totally with blind taste

test ads.

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Thums Up launched Double Maha Cola, the 500 ml bottle, to

prove that bigger is better in cola wars and was again first to introduce

'takeaway' 250 ml bottles for the first time in the Indian cola market. Pepsi

got into more trouble when six months after its launch it caught

government's attention regarding its commitments. Soon after, a show

cause notice was issued to the company for prima facie violation of the

conditions stipulated in the letter of intent with regard to the production of

soft drink concentrate.

Coca Cola came back to India after 16 years when it was

launched on October 24, 1993, at Agra. Coca-Cola was initially wooed

by the Godrej group, Great Eastern Shipping and the Britannia Industries Ltd,

led by Rajan Pillai. In March 1991, it signed an MOU (Memorandum of

Understanding) with BIL and this proposal was accepted by the

Chandrasekhar government. But relationship between the two companies

turned sour over the export-oriented clause and finally on June 23, 1993,

Coca Cola got the permission to enter the country with a 100 per cent

unit in India. On September 22. 1993, the company bought out the Parle

brands.

After the second coming, of the international varieties of Cola

drinks, the market has witnessed a high-profile tussle between the global

giants - Coca-Cola and PepsiCo. This tussle and the respective problems

faced by the two firms in the Indian market are extremely instinctive.

PepsiCo gained a significant first-mover advantage through its ability to

gain early access to the market. Coke, after a couple of abortive

attempts, seemed to have made an entry under ideal conditions in the

market. However, it then faced dissensions within the ranks of its

bottlers. Its manner of dealing with the bottlers seemed to lack Pepsi's

finesse and India seemed to be one of the rare markets where Pepsi

was holding its own against Coke and consolidating its position.

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The companies have continued to wage their war in India. Coke,

with the strategic move of buying out Parle, gained a huge market share

overnight. Hut Pepsi is sparing no efforts to gain a larger share of the

market. The potential in the Indian market is tremendous. The Indian

market is roughly more than Rs 1,200 crore; moreover, the per capita

consumption of three bottles in India is lagging way behind the US's

astounding 700 bottles per capita consumption.

Both Coke and Pepsi have rightly realized that the immediate priority

is in expanding the market by increasing the growth rates. The Indian

market averaged a growth rate of 2.5 per cent between the years 1984-

92. From 1992, when the Cola war took a serious turn, the growth rate

has almost doubled. In 1995 the market grew by 20 per cent in volume

term, with estimated sales of 140 million cases (one case :- 24 bottles of

300 ml each) up from 115 million cases in 1994.

The industry, prior to 1990, was witnessing sluggish growth rates

(CAGR: around 5 per cent) with two domestic players: Parle and Pure

Drinks. The entry of the cola giants, Coke and Pepsi, led to a rapid

expansion in the size of the market (CAGR for the first half of the 1990s:

around 20 per cent). Coke's acquisition of Parle has turned the market

into a duopoly. Also not only the market size is increasing, there is

also a shift of consumer preference between the different soft drink

segments. Whereas in 1990, cola was accounting for a third of all soft

drinks sold, today it accounts for well over a half.

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18

COMPANY PROFILE

COMPANY PROFILE

In 1902 the Pepsi Cola Company was launched in the back room of

pharmacy and was applied in patent office for a trademark. The business

begins to grow on June 16, 1903 “Pepsi Cola” was officially registered with

the US patent office. That year Cola sold 7,968 gallons of syrup using them

in “exhilarating aids digestion”. It also awarded for franchised to bottle Pepsi

to independent investors, where number grew from just two in 1905 in cities

of charlotte and Durham, to 15 the following year, and 40 by 1907.

Gold Spot is considered as the first branded soft drink in India. It

was introduced by Parle in early forties. Coca-Cola was the first foreign soft

drink to be introduced in Indian markets. The Coca-Cola Company entered

India in the early fifties, when four bottling plants were setup at Bombay,

Calcutta, Delhi and Kanpur. Coca-Cola enjoyed a good beginning and

dominated the market. Parle exports private Ltd. the major domestic player

later in 1970 introduced Limca, a lemon soft drink. Before Limca

introduction, they had attentively introduced ‘Cola Pepino’ which was soon

with from the market.

In July 1977 Coca Cola left India following a public dispute over

share holding structure and import permits. As per FERA regulations the

company was required to indicate or clear operation. Coca-Cola left a big

gap, which was filled by several companies who came forward pushing

different brands in market.

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Parle products introduced their cola “Thums Up”; pure drinks

introduced “Campa Cola” along with orange and lemon. Modern Bakeries

introduced “Double Seven” Thrill “Rush” and “Aprint”. At the same time

various regional soft brands played an independent role in their respective

territories like “Duke” and “Mangola” etc.

After Coke was asked to leave India Pepsi began to lay plans to

enter this huge market. Pepsi worked with an Indian business group in

seeking govt. approval for its entry over the objections of both domestic soft

drink companies and anti-multinational legislators, Pepsi saw the solution to

lie in making an offer that Indian Govt. would find hard to refuse. Pepsi

offered to help India export some of its agricultural products in a volume that

would cover more than the cost of importing soft drink concentrate. Pepsi

also promised to focus considerable selling efforts on rural areas to help

their economic development. Pepsi further offered to transfer food

processing packaging and water treatment to India in the way Pepsi started

its operations in April 1989 for beverages, snack food and export business.

In 1990 first Pepsi, Cola was produced in India.

PepsiCo entered India in 1989 and in the span of a little more than a

decade, has grown to become the country's largest selling soft drinks

company. The Company has invested heavily in India making it one of the

largest multinational investors. The group has built an expansive beverage,

snack food and exports business and to support the operations are the

group's 39 bottling plants in India, of which 17 are company owned and 22

are franchisee owned.

PepsiCo stays committed to providing its consumers with top quality

beverages. Its diverse portfolio of brands include the flagship cola brand -

Pepsi; Diet Pepsi; 7Up; Mirinda; Mountain Dew; Slice fruit drink; Tropicana

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brand 100% fruit juices in various flavors; Aquafina packaged drinking

water; Gatorade plus local brands Lehar Evervess Soda, Dukes Lemonade

and Mangola.

PepsiCo is also a dominant player in the snack food segment in

India. PepsiCo's snack food company Frito-Lay is the leader in the branded

potato chip market. It manufactures Lay's Potato Chips; Cheetos extruded

snacks, Uncle Chips; traditional namkeen snacks under the Kurkure and

Lehar brands; and Quaker Oats.

PepsiCo is one of the largest MNC exporters in India and its export

business consist of three categories - agri business, commodities and Pepsi

system sales. PepsiCo has made significant investments with the Punjab

Agriculture University to develop a comprehensive agro-technology

Programmed that has helped thousands of farmers across India improve the

yield of their farms and the quality of their agricultural products. PepsiCo

has leveraged its knowledge in contract farming to develop seaweed

cultivation in Tamil Nadu and has partnered with the Government of Punjab

to help farmers of the state through the utilization of developed technology

for citrus farming.

As part of its sustainable development initiatives, PepsiCo India has

been a committed leader in the promotion of rain water harvesting, water

conservation recycling and the reduction of effluent discharge. PepsiCo has

also established zero waste centers and PET recycling supply chains and

assisted victims of natural disasters. PepsiCo stays dedicated in its

endeavor to develop community outreach programs by supporting rural

water supply schemes, administering medical camps in villages, providing

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computers to rural schools and creating opportunities for women in rural

areas through vocational training as an alternate means of livelihood.

PepsiCo India has worked closely with the Defense forces in

rehabilitation of Defense Personnel through projects like Mission Vijay-2.

Under this project Pepsi in association with Castrol helped soldiers set

booths in rural area to sell Pepsi and Castrol products there by helping them

to not only earn a decent living but to also add some color to their lives.

Through this project PepsiCo India also tries to give these soldiers

distribution rights for its soft drinks.

It gives PepsiCo India great pleasure in associating with Defense India and

Samvedna for an event to bring cheers and smiles for our Jawaans of BSF

(Border Security Force) at Wagah.

In the next year, 1991 production on Mirinda and 7 Up started. The

production of Slice, Teem and Fountain Pepsi started in 1993 Coca-Cola

came back again in October 1993 and launched in Agra. It joined hands

with Parle Export Pvt. Ltd. to enter India and gradually took over the same

company. The nineties also saw a new foreign entrant called Cadbury

Schmeppes, which rolled out Canada Dry and Crush in Metropolitan cities.

Pepsi entered the cloudy lemon category by launching its Mirinda

Lemon in 1998. In may 1999, a notification, presenting the presentation of

food Adulteration (Fourth Amendment) rules 1999, allowed the use of the

blended artificial sweeteners, as part time and a successful fame potassium

in the formulation of soft drinks, which in what made the entry of diet Pepsi

and diet coke. Coca-Cola also rolled out its popular clear lemon drink sprit in

India at same year, 1999.

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What’s in Pepsi?

Pepsi contains:

Carbonated water, High fructose Glucose syrup/or Sugar color, Phosphoric

acid, Caffeine, Citric acid and natural flavors.

Calories 100

Total Fat (gm) 0

Sodium (mg) 25

Potassium (mg) 10

Total Carbohydrates (gm) 27

Sugars (gm) 27

Protein (gm) 0

Caffeine (mg) 25

23

COMPANY STRUCTURE

PepsiCo India Holding Ltd. is created by Pepsi Company, to carry out

the sales and marketing operation in India. Mr. Rajiv Bakshi, (G.M. business

unit), heads the Indian Unit. There are three marketing units in India East

and North, West and South. East & North units are headed by Mr. Prakash

Aiyer. Each marketing unit is subdivided into state units, and their state units

are divided into territories. Allahabad territory falls in U.P. unit of East and

North Marketing unit.

Company owned bottling operation (cobo) of U.P. unit comprises of

Share bottling plants at Sathariya (Jaunpur), Jainpur (Kanpur) and Bajpur

(Nainital) which supply to six territories at Allahabad, Gorakhpur, Kanpur,

Lucknow, Bareilly in U.P. and Uttranchal. This unit is headed by Mr.

Saurabh Gupta (Unit Manager); he is assisted by Mr.Harsh Rai, Marketing

Manager. The other staff in his office is finance controller, finance

coordinator, MEM Coordinator, Legal Advisor, Marketing Executive,

Accounts Executive and personal Executives.

Each territory is headed by territory Development Manager (TDM)

who is assisted by one or two Accounts Development Coordinators

(ADC) .The territory developments Manager (TDM) have a team of

executives. These executives are Customer executives, Service executives,

and Accounts executives. Executive working on Projects Mr. Rohan Arora is

Territory Development Manager (TDM) and Mr. Ajay Nagar is Accounts

Development Coordinator (ADC) of Allahabad Territory. The Customer

executive in this territory is Mr. Subodh Kumar, Mr. Devendra Singh. The

24

Customer Service Executives of this territory is Mr. Raghvendra and

Accounts executive is Mr. Neelkamal.

Allahabad territory is a big territory covering eastern districts of U.P.

as Allahabad, Varanasi, Mirzapur, Ghazipur, Sonebhadra, Pratapgarh,

Bhadoi, Kausambi, Jaunpur etc. There are 72 distributors in this territory.

The annual turnover of company in this territory was 3 million crore in

2004.The turnover of the company in India was 115 million crore in the

same year.

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ORGANISATION CHART

Business Unit Manager (India)

MUM Marketing Unit Manager MUM

(West) (East & North)

(South)

Unit Manager

TDM TDM Territory Development Manager TDM TDM TDM

(Kanpur) (Lucknow) (Allahabad) (Gorakhpur) (Barreilly)

(Uttranchal)

Territory Traini Account

Development

Coordinator

CE CE CE CE CE CE CE

(Jaunpur) (Ghazipur) (Mirzapur) (Pratapgarh)(Bhadoi)(Kausambi)(Sonebhadra)

CE Customer Executive

(Varanasi) (Allahaabd)

26

PEPSICO HEAD QUARTERS

Pepsi co India world head Quarters is located in Purchase, N.Y.

approximately 45 minutes from New York City. Edward Darrel Stone, One of

Americas foremost architects, designed the seven-building headquarters

complex that includes the Donald M.Kendall Sculpture collection in a garden

setting.

The collection of works is focused on twentieth century & features

work by masters such as Auguste Rodin, Henri Laurens, Henry Moore,

Alexander Calder, Alberto Giacometti, Arnaldo Pamodoro & Claes

Oldenburg.

27

COMPANY’S GLOBAL STRATEGY

Set a winner growth goals if you act like number two, you will always

be number two.

Hiring people who love change and thrive on risk taking.

Upset the rules of the market place. .

Always anticipate the response you may provoke.

Execution of a plan often derive success more then more marketing

Encourage Executives to think laterally.

Conjure Up those creative tactics to knack fizz out of its competition.

28

PEPSICO MISSION

We dedicate our efforts to-

In India, only 40% people drinks soft drinks. So the main mission of

Pepsi is to capture the Rural Markets to make it a one-man show.

Hiring & training ‘People’ who single handedly drive the business

forward.

Providing courteous, prompt & efficient service to our customer.

Building long-term prosperity of our brands in the market place.

Exploring & developing opportunities that helps in building

competitive edges.

29

MARKET SIZE AND GROWTH RATE

The particular feature of market is that of positioning & targeting of

various brands while cola brand of Coke is targeted at teenagers & is

positioned as refreshment for mind & body. The Thums up brand is targeted

at people in age group & is positioned as fun drink.

Soft Drink market size for Fy00 was around 270mm cases (6480ml

bottle). The market, which was witnessing 5-6% growth in the early 1905 &

even slower growth at around 2-3% in the late 80s. Presently the market

growth has slowed down with growth rate of 7-8 per annum dawn with

growth rate of 7-8% per annum compared to 22% growth rate in the

previous year. The market size for Fy01 is expected to be 7000mmbottles.

The market growth of 22% till last year target still due to high excise duty of

40% leading to higher price of the end product. In terms of SKUS the market

is Skewed towards 300ml which constitutes around 80-85% of the market

rest in the form of other pack, Size, But with increasing occasion led & home

refrigeration led consumption the sales of bigger SKU’s like more than 1 liter

pack size has increased this has led to increase contribution from pet

bottles sales up to 75% are in Urban areas.

Another skew ness is in terms of the time of the year when the

consumption takes place. Sale of soft of Drinks takes place during summer

while just 5-6% of the total sales take place in the winter. In summer the

high season starts for 70-75 days, which contributes more than 50% of the

total year’s sales.

30

BRAND PROFILE

PepsiCo Company provides five brands of Soft drinks. In all brands

of Pepsi one is Soda, Second Mineral water and other are running

successfully in the market. At present time Pepsi provides two new soft

drinks. Dew Mountain and Blue Pepsi and above marketed with reasonably

good success. They are completely defined below-

1. Pepsi

2. Blue Pepsi

3. Pepsi Diet

4. Miranda (Lemon + Mango)

5. Slice

6. 7up

7. Aquafina

8. Dew Mountain

Now here we will discuss about the market shares of each brands of

soft drinks. There market share are as follows-

31

Soft Drinks Market Share

Pepsi 57%

Mirinda (Orange) 16%

Mirinda (Lemon) 2%

Slice 1.5%

Teem Soda Not Available

7UP 1.5%

Aquafina 3%

Blue Pepsi 2%

Dew Mountain 8%

Pepsi Diet 6%

32

Quantity Details of all brands of Soft drinks are given as below—

SOFT DRINKS Quantity

Pepsi

Mirinda Orange

Mirinda Lemon

Slice

7up

Teem Soda

Pepsi Diet

Aquafina

Dew mountain

Blue Pepsi

200ml, 300ml, 600ml, 1lt, 2lt.

200ml, 300ml, 600ml, 1lt, 2lt

200ml, 300ml, 600ml, 1lt, 2lt

250ml, 500ml

200ml, 300ml, 2lt

300ml, 600ml

330ml, 500ml

1lt

200ml

500ml

The PepsiCo company had provided its 300ml bottle soft

drinks(B.S.D.) in the month of June 95, 200ml launched in the year of 1999

and I lit, 1.5 lit bottle launched in the year 1996 while 500ml and 2 it

launched in 2000, Mineral water, Aquafina had been launched in the year

2001.

Dew mountain, Blue Pepsi 200ml, 500, ml, has been launched in the year

2003.

33

PEPSI DISTRIBUTION CHANNEL

Pepsi's main strategy is to operate franchisee (Franchisees owned

Bottling operation). Pepsi indulges mainly in direct contribution lo retailer

and resorts to indirect in certain areas. Pepsi distributes through three

channels which is shown below:

There is no involvement of wholesalers in the distribution of products. It is

more like an agent network. The companies have divided the country into

various regions and established a franchisee in each region. The

franchisees have their own bottling plants and manage all the day to day

operations.

PEPSI BOTTLING PLANT

WAREHOUSE

FRANCHISEE DEALERS

RETAILERS

CONVENTIONAL RETAILERS

NON-CONVENTIONAL RETAILERS

34

PACKAGING

Packaging plays a vital role in increasing decreasing in the sales of

the products. Thus, packaging of the product should be attractive and

product should be available in different sizes.

To keep in mind the importance of packaging PepsiCo and Coca cola

is adopting new technology for looking the products attractive and producing

the product in different size. The different pack sizes available are 200 ml,

300 ml, 330 ml (Can), 600 ml (promotional pack with 100 ml extra), I liters.,

1.5 liters., 2 liters., and 200 ml / 250 ml (slice).

RANGES OF DIFFERENT PACK AVAILABLE

1. GLASS – 200 ml, 300 ml, 1 liter and 250 ml.

2. PET - 500 ml, 600 ml, 1 liter and 2 liter.

3. TETRA - 200 ml (SLICE)

4. CANS - 330 ml

IN GLASS

24 Bottles * 200 ml = 1 Case

24 Bottles * 250 ml = 1 Case

24 Bottles * 300 ml = 1 Case

6 Bottles * 1000 ml = 1 Case

IN PET

24 Bottles * 500/600 ml = 1 cartoons

12 Bottles * 1000 ml = 1 cartoons

9 Bottles * 2000 ml = 1 cartoons

12 Bottles * 1500 ml = 1 cartoons

TETRA

24 Bottles * 200 ml = 1 Case

CANS

24 cans * 330 ml = 1 Case

35

ADVERTISING STRATEGIES ADOPTED BY AERATED SOFT DRINK

INDUSTRY

Soft drinks is perhaps the most hard fought product categories in

India in every respect - media, events, distribution, pricing, communication,

endorsements and so on... Every year it consistently emerges as one of the

top 10 categories on television. We, at AdEx India, have looked at year

2003 to understand the year that was for this exceptionally competitive

segment!

One clear and predictable pattern in 2003 was the two clear peaks of

ad spend - one during the world cup and the other during the festive time.

Interestingly, while Pepsi dominated media budgets during World Cup,

Coca-Cola seems to have been the dominant spender in the month of

September.

However, this time we at AdEx thought of dwelling on aspects of

advertising in terms of strategy adopted by the different players in this

category and the duration of advertising across genres on TV and press.

This paper tries to throw some light on the following aspects: -

Genre wise and channel wise composition of advertising on TV

Advertising strategy adopted by the aerated soft drink players on TV

and press

Zone wise and genre wise advertising on press

Specific case: zone wise and genre wise advertising for Pepsi and

Coke

36

Genre wise analysis on aerated drinks establishes that this category is

heavily advertised on feature films, music, cricket and soaps. Major part of

the advertising on Cricket can be attributed to the fact that Pepsi was the

official sponsor of the Cricket World Cup 2003. However, apart from cricket

Pepsi is actively present on other types of sports such as soccer, wrestling

etc.

37

FIGHT FOR THE MARKET SHARES

With the cola majors busy sharpening their arsenal, it's a

pitched battle all the way -- whether on television or in the marketplace.'

According to figures released by IMRB, in the month of January--

February, the combined market share of all carbonated soft drinks (CSD)

beverages under PepsiCo's domestic product portfolio - including Pepsi,

Mirinda Orange, Mirinda Lemon and 7 Up -- stands at 48.3 per cent. The

IMRB data adds that with the exception of Mirinda Lemon, all PepsiCo

beverages have led over Coca-Cola's brands in terms of market share in

this period.

However, when contacted by Business Line, Coca-Cola's official

spokesperson disagreed with these figures. According to ORG-MARG,

which tracks market figures for Coca-Cola India, the combined market share

of all Coca-Cola brands put together stands at 58 per cent. While declining

to provide individual market share of brands under the company's portfolio,

Coca Cola India's official spokesperson sa1d, "We do not agree with the

figures given by PepsiCo. If our turnover last year was almost double theirs,

how can their market shares be higher? The market shares they are stating

are obviously questionable."

Pepsi's official spokesperson reiterated that among colas, which

occupy close to 70 per cent of the approximately 270-millioncases CSD

market, Brand Pepsi's market share stands at 51 per cent. The combined

market shares of Coca-Cola and Thums Up stands at 49 per cent, according

to IMRB.

38

In the carbonated orange segment, which accounts for roughly 15

per cent of the overall CSD market, the market share for Mirinda Orange

has been estimated at 53' per cent by IMRB. The market share of Coca-

Cola's Fanta brand is estimated at 47 per cent.

In the cloudy lemon segment, which accounts for roughly 10 per cent

of the CSD market, Coca-Cola's Limca brand leads PepsiCo's Mirinda

Lemon by a huge margin. Limca has a 75 per cent size of this segment,

while the share of Mirinda Lemon is 25 per cent. According to industry

estimates; the share of the cloudy lemon segment has slipped below that of

the orange segment. Interestingly, the cloudy lemon segment does not exist

in most developed markets, and is primarily a developing country

phenomenon.

39

PEPSICO: SOON TO HIT $ 1-BILLION MARK IN INDIA

PepsiCo will soon join the elite band of companies with $l-billion sales in

India. The company currently has sales of $700 million. Since 1989 the $27 -

billion food and beverages giant has invested $700 million in India and seen a

steady double-digit growth in its volumes. The Indian operations are the Atlanta

based company’s: fifth largest outside the US now.

"We are on track to make it the second or third largest," Steve

Reinemund, chairman & CEO PepsiCo told the media in New Delhi.

Reinemund's visit was preceded by that of E Neville Isdell, chairman of the

board and CEO of The Coca Cola Company, who chose to visit India on taking

charge of Coke's global operations a few months ago.

Reinemund said PepsiCo's Rs5-per-packaffor_bility strategy initiated by

Coke and Pepsi had worked well in India and helped the company increase its

consumer base from 150 million to 250 million. He said with the strategy

PepsiCo had attained critical mass. "It is time now to increase the depth of

consumption," he says.

However, he admitted that the company was forced to hike its prices

recently as there was an affordability challenge all over the world. "We have

learnt this lesson and reverted to higher price points (in India) after having

achieved our objective of 150 million consumer footprints. We do not see any

depth in our future pricing and therefore, we have changed our strategy."

40

Pepsi Co is now making operating profits in India and its exports are

worth over $60 million, up from just $3 million in 1991. Reinemund was

especially upbeat about the company's snacks business Frito Lay, in India,

which he said was the fastest growing segment for five consecutive years.

"India is clearly one of our priority markets," he said.

Extolling Indian corporate talent, Reinemund said PepsiCo India was

being run without any expatriates and40 officials from the Indian operations had

so far been placed in the company's global businesses.” We are planning a

significant increase in our manpower exports from India," he said. He said

PepsiCo employed more than 4,000 people in India directly and over 60,000

indirectly with its concept of contract farmiJ1g in India. It has relationships with

over 2,000 farmers. The company introduced farmers in India to six high-yield

potato varieties and helped development of new seeds which helped increase

the total annual production of tomatoes from 28,000 tones to over 250,000

tones in Punjab.

The company had no plans to make any structural changes in India said

Reinemund, since of the 37 bottling plants in the country, 17 company-owned

bottling plants accounted for 55 per cent of total production. He dismissed

reports that arch rival Coke was closing in on the sales of Pepsi products and

said Pepsi's leadership position was because Indians loved its products.

Reinemund met finance minister P Chidambaram and planning

commission deputy chairman Montek Singh Ahluwalia later in the day.

41

Sources said Reinemund was likely to discuss issues of future

investments and the high taxation policy of the government towards the soft

drinks industry and the overall fiscal environment with Chidambaram and other

senior government officials. Coca-Cola and PepsiCo have been urging the

government for lowering taxes, specially the special excise duty of eight per

cent levied on carbonated soft drinks.

This is Reinemund's first visit to India and signifies the increasing

importance of Indian operations for PepsiCo. India is now among the top eight

businesses of PepsiCo worldwide in terms of beverage and snack sales and

second only to China within Asia.

42

ADVERTISING AND PUBLICITY

PepsiCo is one of the biggest end spenders in India. It is also one of the

biggest global end spenders. It has a long list of endorsers from pop star

Ricky Martin to film star Sharukh Khan, Karina Kapoor, Pritey Jienta, Saif Ali

Khan, Fardin Khan and Amitabh Bachchan. Hindustan Thompson

Associates, the big guest advertising agency of India has the account of

PepsiCo, is known for its broad cast advertising but it also spends a lot in

non broad cast advertising i.e. hoarding, banners, poster, stickers,

specialties, hanger, dealer board, glow signboard, wall paintings and news

paper, the expenses of these type of advertising are made at territory or unit

level. Allahabad territory has assigned two local advertising agencies R. D.

Associates and Krishna for its territorial advertising.

43

Pepsi's Products

44

45

COOLING FACILITIES AT OUTLET

The company has distributed 3,000 cooling approach at the outlet. The

company has purchased these coolers from six different companies out of

which few also provide maintained services. The companies are Alywn, Carrier,

Kelvinator, Konark & Helchama.

In India 80% soft drink is consumed at the outlets &the rest 20% is

consumed at homes, this requires the soft drink manufacturer to provide

adequate cooling facilities at the outlet’s to make the soft drinks, ready to serve

to the consumer. Pepsi Company wants to serve its customers with finished

products. The company supplies final product to the retailers & it is retail outlet

where the product is transformed into finished product. While serving the chilled

soft drinks to customer, so the chilled Pepsi available at the retail outlets is the

finished product.

The company has also installed deep freezers models of 100lt, 250lt

&1000lt. This cooling equipment is the property of the company, which are

installed at outlets to serve the customer. They are in stalled at those outlets,

which have a deposit of 12 crates of empties upon each 10 liter capacity of the

order & a potential of selling four carats annually on each Liter capacity of the

cooler. The retailers are required to keep only PepsiCo product in these

coolers.

The capacity of coolers varies from 65 liters to 330 liters. Most of the

models have a transparent door, which makes the product visible. These

models are called VISI coolers.

46

47

MARKETING SCHEMES

For increasing the market share and beating the competitors company

provides different schemes on different time. The schemes are of two types one

for Consumers and other for retailers. During my training period two types of

consumer schemes and two types of retailer schemes were going on.

1. Free Flavors, To Retailers:

Company offers few bottle flavors free to retailers on purchase of one

carat of flavor on some specific days. The free flavors scheme varies from one

bottle to many bottles.

2. Display Rack Scheme:

This scheme is only for retailers. In this scheme company provides a

Pepsi rack to retailer. The rack is filled with different bottles of Pepsi. The

retailers are instructed that if they will maintain their racks in the same condition

as it was when it was purchased. After completion of one-month different gift

packs are distributed to the retailers.

3. Hai Koi Jawab:

This scheme was launched on 300ml bottle of Pepsi. This is U.T.C.

scheme meaning Under the Crown. In this scheme some number are given

under the bottle of Pepsi and company announces some lucky number. If this

number is matched with the number under the crown number then the owner of

that bottle wins different cash prizes.

4. Miranda U.T.C:

This scheme was launched on 300ml bottle of Miranda. This is U.T.C.

Scheme meaning under the crown. In this scheme some dollar amount is given

under the bottle and the consumer may collect these dollars and add it.

Company provided different gift packs on different crown number.

Their schemes are offered by the company to maintain the competition at it is

offered on those days when Coca-Cola offers any similar scheme.

48

4 P’S

4 P’s is the main features that directly affect the organization without 4

P’s organization is not able to produce the product. 4 P’s represent the main

features of product. Many possibilities can be collected into four groups of

Variables know as “Four Ps” i.e. product, price, place, promotion.

Product: -

Product means the good and service combination of the company

offered to the target market. Company changes the sizes, variety, flavor brand

name of the product after one or two year.

Price: -

Price is the amount of money which customers have to pay to obtain the

product calculates suggested retails prices that its dealers might charge for

sources. But dealers rarely charge the full sticker price.

Place: -

They are mostly available in al place but easily available in the Urban

Market but not frequently found in Rural Market.

Promotion: -

Promotion means activities that communicate the merit of the product

and persuade target customers to buy it. The measurement factor to promote

the Pepsi product is to increase good transportation in rural market. If the Pepsi

is available to capture the rural market then it is certain that it will occupy first

position of soft drinks industry.

49

Product Variety Quality – Sizes Features – Services Brand Name –

Warranties Packaging- Returns

Product

List Price Discounts Allowances Payment Period Creditors

Price

Advertising Personal Setting Sales Promotion Public Relations

Place

Channels Coverage Assortments Locations Logistic Inventory Transportation

Promotion

Target

Customers

Intended

Positional

50

The Coca-Cola Company

One Coca-Cola Plaza

Atlanta, GA 30313

Phone: 404-676-2121

Fax: 404-515-5997

Web Site: http://www.cocacola.com/

DETAILS

Index Membership:

Dow Jones CompositeDow IndustrialsS&P 100S&P 500S&P 1500 Super Comp

Sector: Consumer Goods

Industry: Beverages - Soft Drinks

Employees (last reported count): 92,400

OFFICERSPay Exercised

Mr. Muhtar Kent ,

58 Chief Exec. Officer, Pres, Director and Member of Exec. Committee

$ 5.60M$ 0

Mr. Gary P. Fayard ,

56 Chief Financial Officers and Exec. VP$ 1.83M $ 0

Mr. Alexander B. Cummings Jr.,

52 Chief Admin. Officer, Exec. VP, Pres of Africa Group and Chief Operating Officer of Africa Group

$ 1.59M $ 0

Mr. José Octavio Reyes ,

56 Pres of Latin America and Chief Operating Officer of Latin America

$ 1.86M $ 0

Mr. Irial Finan ,

51 Exec. VP and Pres of Bottling Investments & Supply Chain

$ 2.13M $ 0

Dollar amounts are as of 31-Dec-08 and compensation values are for the last fiscal year ending on that date. "Pay" is salary, bonuses, etc. "Exercised" is the value of options exercised during the fiscal year.

51

REUTERS ABRIDGED BUSINESS SUMMARY

The Coca-Cola Company manufactures, distributes, and markets

nonalcoholic beverage concentrates and syrups worldwide. It principally offers

sparkling and still beverages. The company’s sparkling beverages include

nonalcoholic ready-to-drink beverages with carbonation, such as energy drinks,

and carbonated waters and flavored waters. Its still beverages consist of

nonalcoholic beverages without carbonation, including non-carbonated waters,

flavored waters and enhanced waters, juices and juice drinks, teas, coffees,

and sports drinks. The Coca-Cola Company also offers fountain syrups, syrups,

and concentrates, such as flavoring ingredients and sweeteners. The company

markets its nonalcoholic beverages under the Coca-Cola, Diet Coke, Fanta,

and Sprite brand names. The Coca-Cola Company also owns mineral water

brands Kildevaeld and Kurvand in Denmark and soft drink brand Hyvaa Paivaa

in Finland. It sells its finished beverage products primarily to distributors, and

beverage concentrates and syrups to bottling and canning operators,

distributors, fountain wholesalers, and fountain retailers. The company was

founded in 1886 and is headquartered in Atlanta, Georgia.

52

COKE IN INDIA

Coca-Cola was the leading soft drink brand in India until 1977 when it

left rather than reveals its formula to the government and reduces its equity

stake as required under the Foreign Exchange Regulation Act (FERA) which

governed the operations of foreign companies in India. After a 16-year

absence, Coca-Cola returned to India in 1993, cementing its presence with a

deal that gave Coca-Cola ownership of the nation's top soft-drink brands and

bottling network. Coke’s acquisition of local popular Indian brands including

Thums Up (the most trusted brand in India2 1), Limca, Maaza, Citra and Gold

Spot provided not only physical manufacturing, bottling, and distribution assets

but also strong consumer preference. This combination of local and global

brands enabled Coca-Cola to exploit the benefits of global branding and global

trends in tastes while also tapping into traditional domestic markets. Leading

Indian brands joined the Company's international family of brands, including

Coca-Cola, diet Coke, Sprite and Fanta, plus the Schweppes product range. In

2000, the company launched the Kinley water brand and in 2001, Shock

energy drink and the powdered concentrate Sunfill hit the market.

From 1993 to 2003, Coca-Cola invested more than US$1 billion in India,

making it one of the country’s top international investors.22 by 2003, Coca-

Cola India had won the prestigious Woodruf Cup from among 22 divisions of

the Company based on three broad parameters of volume, profitability, and

quality. Coca-Cola India achieved 39% volume growth in 2002 while the

industry grew 23% nationally and the Company reached break-even

profitability in the region for the first time.2 3 Encouraged by its 2002

performance, Coca-Cola India announced plans to double its capacity at an

investment of $125 million (Rs. 750 crore) between September 2002 and

March 2003.

53

Coca-Cola India produced its beverages with 7,000 local employees at

its twenty-seven wholly-owned bottling operations supplemented by seventeen

franchisee-owned bottling operations and a network of twenty-nine contract-

packers to manufacture a range of products for the company. The complete

manufacturing process had a documented quality control and assurance

program including over 400 tests performed throughout the process.

The complexity of the consumer soft drink market demanded a

distribution process to support 700,000 retail outlets serviced by a fleet that

includes 10-ton trucks, open-bay three wheelers, and trademarked tricycles

and pushcarts that were used to navigate the narrow alleyways of the cities.25

In addition to its own employees, Coke indirectly created employment for

another 125,000 Indians through its procurement, supply, and distribution

networks.

Sanjiv Gupta, President and CEO of Coca-Cola India, joined Coke in

1997 as Vice President, Marketing and was instrumental to the company’s

success in developing a brand relevant to the Indian consumer and in tapping

India’s vast rural market potential. Following his marketing responsibilities,

Gupta served as Head of Operations for Company-owned bottling operations

and then as Deputy President. Seen as the driving force behind recent

successful forays into packaged drinking water, powdered drinks, and ready-

to-serve tea and coffee, Gupta and his marketing prowess were critical to the

continued growth of the Company.

54

HISTORY OF COKE

The Early Days

Coca-Cola was created in 1886 by John Pemberton, a pharmacist in

Atlanta, Georgia, who sold the syrup mixed with fountain water as a potion for

mental and physical disorders. The formula changed hands three more times

before Asa D. Candler added carbonation and by 2003, Coca-Cola was the

world’s largest manufacturer, marketer, and distributor of nonalcoholic

beverage concentrates and syrups, with more than 400 widely recognized

beverage brands in its portfolio. With the bubbles making the difference, Coca-

Cola was registered as a trademark in 1887 and by 1895, was being sold in

every state and territory in the United States. In 1899, it franchised its bottling

operations in the U.S., growing quickly to reach 370 franchisees by 1910.10

Headquartered in Atlanta with divisions and local operations in over 200

countries worldwide, Coca-Cola generated more than 70% of its income

outside the United States by

2003.

International expansion

Coke’s first international bottling plants opened in 1906 in Canada,

Cuba, and Panama.11 By the end of the 1920’s Coca-Cola was bottled in

twenty-seven countries throughout the world and available in fifty-one more.

In spite of this reach, volume was low, quality inconsistent, and effective

advertising a challenge with language, culture, and government regulation all

serving as barriers. Former CEO Robert Woodruff’s insistence that Coca-Cola

wouldn’t buffer the stigma of being an intrusive American product,55 and

instead would use local bottles, caps, machinery, trucks, and personnel

contributed to Coke’s challenges as well with a lack of standard processes

and training degrading quality.

55

Coca-Cola continued working for over 80 years on Woodruff’s goal: to

make Coke available wherever and whenever consumers wanted it, an arm’s

reach of desire. The Second World War proved to be the stimulus Coca-Cola

needed to build effective capabilities around the world and achieve dominant

global market share. Woodruff’s patriotic commitment that every man in

uniform gets a bottle of Coca-Cola for five cents, wherever he is and at

whatever cost to our company was more than just great public relations. As a

result of Coke’s status as a military supplier, Coca-Cola was exempt from

sugar rationing and also received government subsidies to build bottling

plants around the world to serve.

Turn of the Century Growth Imperative

The 1990’s brought a slowdown in sales growth for the Carbonated Soft

Drink (CSD) industry in the United States, achieving only 0.2% growth by 2000

(just under 10 billion cases) in contrast to the 5-7% annual growth experienced

during the 1980’s. While per capita consumption throughout the world was a

fraction of the United States’, major beverage companies clearly had to look

elsewhere for the growth their shareholders demanded. The looming

opportunity for twenty-first century was in the world’s developing markets with

their rapidly growing middle class populations.

The World’s Most Powerful Brand

Inter brand’s Global Brand Scorecard for 2003 ranked Coca-Cola the

#1 Brand in the World and estimated its brand value at $70.45 billion. The

ranking’s methodology determined a brand’s valuation on the basis of how

56

much it was likely to earn in the future, distilling the percentage of revenues

that could be credited to the brand, and assessing the brand’s strength to

determine the risk of future earnings forecasts. Considerations included

market leadership, stability, and global reach, incorporating its ability to cross

both geographical and cultural borders.

From the beginning, Coke understood the importance of branding and

the creation of a distinct personality.1 8 Its catchy, well-liked slogans1 9 (it’s

the real thing57 (1942, 1969), things go better with Coke57 (1963), coke is its

(1982), can’t beat the Feeling (1987), and a 1992 return to can’t beat the real

thing57) 20 linked that personality to the core values of each generation and

established Coke as the authentic, relevant, and trusted refreshment of choice

across the decades and around the globe.

57

Marketing Cola in India

The post-liberalization period in India saw the comeback of cola but

Pepsi had already beaten Coca-Cola to the punch, creatively entering the

market in the 1980’s in advance of liberalization by way of a joint venture. As

early as 1985, Pepsi tried to gain entry into India and finally succeeded with

the Pepsi Foods Limited Project in 1988, as a JV of PepsiCo, Punjab

government-owned Punjab Agro Industrial Corporation (PAIC), and Voltas

India Limited. Pepsi was marketed and sold as Lehar Pepsi until 1991 when

the use of foreign brands was allowed under the new economic policy and

Pepsi ultimately bought out its partners, becoming a fully-owned subsidiary

and ending the JV relationship in 1994.

While the joint venture was only marginally successful in its own right, it

allowed Pepsi to gain precious early experience with the Indian market and

also served as an introduction of the Pepsi brand to the Indian consumer such

that it was well-poised to reap the benefits when liberalization came. Though

Coke benefited from Pepsi creating demand and developing the market,

Pepsi’s head-start gave Coke a disadvantage in the mind of the consumer.

Pepsi’s appeal focused on youth and when Coke entered India in 1993 and

approached the market selling an American way of life, it failed to resonate as

expected.

58

2001 Marketing Strategy

Coca-Cola CEO Douglas Daft set the direction for the next generation

of success for his global brand with a “Think local, act local” mantra.

Recognizing that a single global strategy or single global campaign wouldn’t

work, locally relevant executions became an increasingly important element of

supporting Coke’s global brand strategy.

In 2001, after almost a decade of lagging rival Pepsi in the region, Coke

India re-examined its approach in an attempt to gain leadership in the Indian

market and capitalize on significant growth potential, particularly in rural

markets. The foundation of the new strategy grounded brand positioning and

marketing communications in consumer insights, acknowledging that urban

versus rural India were two distinct markets on a variety of important

dimensions. The soft drink category’s role in people’s lives, the degree of

differentiation between consumer segments and their reasons for entering the

category, and the degree to which brands in the category projected different

perceptions to consumers were among the many important differences

between how urban and rural consumers approached the market for

refreshment.

In rural markets, where both the soft drink category and individual

brands were undeveloped, the task was to broaden the brand positioning while

in urban markets, with higher category and brand development, the task was

to narrow the brand positioning, focusing on differentiation through offering

unique and compelling value. This lens, informed by consumer insights, gave

Coke direction on the tradeoff between focus and breadth a brand needed in a

given market and made clear that to succeed in either segment, unique

marketing strategies were required in urban versus rural India.

59

Rural Success

Comprising 74% of the country's population, 41% of its middle class,

and 58% of its disposable income, the rural market was an attractive target

and it delivered results. Coke experienced 37% growth in 2003 in this

segment versus the 24% growth seen in urban are as.

Driven by the launch of the new Rs. 5 product, per capita consumption

doubled between 2001-2003. This market accounted for 80% of India’s new

Coke drinkers, 30% of 2002 volume, and was expected to account for 50% of

the company’s sales in 2003.

Brand Localization Strategy: The Two Indies

India A: “Life ho to aisi”

“India A,” the designation Coca-Cola gave to the market segment

including metropolitan areas and large towns, represented 4% of the country’s

population.3 3 This segment sought social bonding as a need and responded

to inspirational messages, celebrating the benefits of their increasing social

and economic freedoms. “Life ho to aisi,” (life as it should be) was the

successful and relevant tagline found in Coca-Cola’s advertising to this

audience.

India B: “Thanda Matlab Coca-Cola”

Coca-Cola India believed that the first brand to offer communication

targeted to the smaller towns would own the rural market and went after that

objective with a comprehensive strategy. “India B” included small towns and

rural areas, comprising the other 96% of the nation’s population. This

segment’s primary need was out-of-home thirst-quenching and the soft drink

60

category was undifferentiated in the minds of rural consumers. Additionally,

with an average Coke costing Rs. 10 and an average day’s wages around Rs.

100, Coke was perceived as a luxury that few could afford.

In an effort to make the price point of Coke within reach of this high-

potential market, Coca-Cola launched the Accessibility Campaign, introducing

a new 200ml bottle, smaller than the traditional 300ml bottle found in urban

markets, and concurrently cutting the price in half, to Rs. 5. This pricing

strategy closed the gap between Coke and basic refreshments like lemonade

and tea, making soft drinks truly accessible for the first time. At the same time,

Coke invested in distribution infrastructure to effectively serve a disbursed

population and doubled the number of retail outlets in rural areas from 80,000

in 2001 to 160,000 in 2003, increasing market penetration from 13 to 25%.

Coke’s advertising and promotion strategy pulled the marketing plan

together using local language and idiomatic expressions. “Thanda,” meaning

cool/cold is also generic for cold beverages and gave “Thanda Matlab Coca-

Cola” delicious multiple meanings. Literally translated to “Coke means

refreshment,” the phrase directly addressed both the primary need of this

segment for cold refreshment while at the same time positioning Coke as a

“Thanda” or generic cold beverage just like tea, lassi, or lemonade. As a result

of the Thanda campaign, Coca-Cola won Advertiser of the Year and Campaign

of the Year in 2003.

61

CORPORATE SOCIAL RESPONSIBILITY

As one of the largest and most global companies in the world, Coca-

Cola took seriously its ability and responsibility to positively affect the

communities in which it operated. The company’s mission statement, called

the Coca-Cola Promise, stated: “The Coca-Cola Company exists to benefit

and refresh everyone who is touched by our business.” The Company has

made efforts towards good citizenship in the areas of community, by

improving the quality of life in the communities in which they operate, and the

environment, by addressing water, climate change and waste management

initiatives. Their activities also included The Coca-Cola Africa Foundation

created to combat the spread of HIV/AIDS through partnership with

governments, UNAIDS, and other NGOs, and The Coca-Cola Foundation,

focused on higher education as a vehicle to build strong communities and

enhance individual opportunity.

Coca-Cola’s footprint in India was significant as well. The Company employed

7000 citizens and believed that for every direct job, 30-40 more we re created

in the supply chain.

Like its parent, Coke India’s Corporate Social Responsibility (CSR)

initiatives were both community and environment-focused. Priorities included

education, where primary education projects had been set up to benefit

children in slums and villages, water conservation, where the Company

supported community-based rainwater harvesting projects to restore water

levels and promote conservation education, and health, where Coke India

partnered with NGOs and governments to provide medical access to poor

people through regular health camps. In addition to outreach efforts, the

company committed itself to environmental responsibility through its own

business operations in India including.

62

Environmental due diligence before acquiring land or starting projects.

Environmental impact assessment before commencing operations.

Ground water and environmental surveys before selecting sites.

Compliance with all regulatory environmental requirements.

Ban on purchasing CFC-containing refrigeration equipment.

Waste water treatment facilities with trained personnel at all company-

owned bottling operations.

Energy conservation programs.

50% water savings in last seven years of operations

63

RESEARCH METHODOLOGY

64

RESEARCH METHODOLOGY

Scope of the study:

The research pertains to the study of consumer choice for soft drinks at

Udaipur market. This study is attempt to analyze the present top brands

preferred by customer for soft drink in udaipur market, examine the product

factors that influence the purchasing decisions of buyers and to know the

relation between gender & preference for soft drinks & flavors.

Objectives of the study

As every research has some objective/s to achieve or problem/s to solve.

Because every research is conducted in order to achieve some objectives.

Objectives of this research stud y are-

1. To study the brand preference for different kind of soft drinks.

2. To determine the factors that influences the consumer choice of a

particular soft drink.

3. To study the consumption pattern & behavioral aspects of consumes

such as frequency of consumption, quantity of consumption, place of

consumption etc.

4. To study the sales promotion tool/techniques sources of media that

attracts consumers most.

65

METHODOLOGY

Data collection

The type of data collected for the research was primary as well as secondary.

Primary data was collected through:

Direct contact with the customers.

Questionnaires filled by the customers.

Secondary data was collected through:

Various journals

Internet survey reports

66

Field work and Sample

While developing and utilizing a sample for the research purpose, the following

steps were used:

Defining the universe

Developing the sample frame

Selecting a sampling frame

Determining the sample size

Selecting the research instrument

Universe

The universe or population is the specific group of people is the specific group

of people from conditions, activities, etc. which form the pivotal point of the

project.

For developing and using sample, it becomes the primary duty of researcher to

define the population from which she\he intends to draw the sample.

The universe of my project is about 130 consumers of Udaipur city, which

formed the pivotal point of my project.

Sampling frame

A sampling frame may be defined as the listing of the general components of

the individual unit that comprise the defined population.

In case of my project, sampling frame is various consumers frame is various

consumers including lower middle class, middle class and rich class.

67

Sampling procedure

After defining the sampling frame, other important point to be discussed is

which sampling procedure to be adopted.

A simple random sampling technique will be used to understand customer’s

outlook towards the soft drinks.

Sample size

130 consumers of Udaipur city an attempt will be made to make the sample

representative of the whole population under study.

Research instrument:

Questionnaires were used to find out “Factors influencing consumer choice of

soft drinks” in Udaipur city with the help of the questionnaire, filled by 130

consumers, the result was analyzed.

The process was followed to prepare a questionnaire:

1. Specify the information needed.

2. Determined the types of questions to be asked.

3. Deciding the number and sequence of questionnaire.

4. Preparing preliminary draft of questionnaire.

5. Revised and protested the questionnaire.

Limitations

68

Although the research was conducted in a way to ensure accurate results but

certain errors might have occurred due to some unavoidable reasons. Some of

the limitations of the project are:-

Data collection

1. Non-response by some of the respondents.

2. Since the population is not homogeneous, some biasness might have

creped in.

3. The sample of convenience, thus it is not the true representative of the

complete.

MEASUREMENT ERROR

There was certain degree of misinterpretation by the respondents about the

points raised in the interview.

69

No. of Respondents In%

Males 70 54%

ANALYSIS&

INTERPRETAYION

70

Females 60 46%

Total 130 100%

Data Analysis and Interpretation

1. Gender wise profile:

Graph 1.1

Gender wise Profile

Male54%

Female46%

Male

Female

Interpretation:

As the above graph shows that there were equal male and female respondents,

males were little higher than females by only 4%.

2. Age wise Profile:

71

10-20 years

In %21-30 years

In %31-40 years

In %More

than 40 years

In % Total

Male 12 17% 28 40% 21 30% 9 13% 70

Female 14 23% 20 33% 16 27% 10 17% 60

Total 26 20% 48 37% 37 28% 19 15% 130

Graph 2.1

Age Wise Profile of Males Respondents

17%

40%

30%

13%

10-20 years 21-30 years 31-40 years More then 40 years

Interpretation:

As the above graph clearly depicts that most of males respondents

[40%] were youth as fall into the category of 21-30 years.

72

Graph 2.2

Age Wise Profile of Females Respondents

23%

33%

27%

17%

10-20 years 21-30 years 31-40 years More then 40 years

Interpretation:

As the above graph clearly depicts that most of females respondents

[33%] were also youth as they fall into the category of 21-30 years.

3. Occupation wise Profile:

73

Service In % Business In % Professionals In %Other [Students

housewives etc.]

In %

Male 28 40% 14 20% 9 13.% 19 27%

Female 10 17% 0 0% 8 13.% 42 70%

Total 38 28.% 14 10% 17 13.% 61 47%

Graph 3.1

Occupation Wise Profile of Males

40%

20%

13%

27%

Service Business Professionals Students

Interpretation:

As the above graph clearly shows that there were most of males

respondents [40%] were service category

Graph 3.2

74

Occupation Wise Profile of Females

17%

27%

13%

43%

Service Students Professionals Housew ife

Interpretation:

As the above graph clearly shows that there were most of females

respondents [43%] were housewives category

4. Income group wise profile:

75

Less than

Rs. 10,000

In % 10,000-

15,000

In % 15,000-

20,000

In % More than

20,000

In %Total

Male 37 53% 9 13% 9 13% 15 21% 70

Female 42 70% 4 7% 8 13% 6 10% 60

Total 79 61% 13 10% 17 13% 21 16% 130

Graph 4.1

Income Wise Profile of Males

53%

13%

13%

21%

Less then Rs. 10,000 10,000-15,00015,000-20,000 More then Rs. 20,000

Interpretation:

As the above graph clearly shows that there were most of males

respondents [53%] were income group of Rs. Less than Rs. 10,000.

76

Graph 4.2

Income Wise Profile of Females

70%

7%

13%

10%

Less then Rs. 10,000 10,000-15,00015,000-20,000 More then Rs. 20,000

Interpretation:

As the above graph clearly shows that there were most of females

respondents [70%] were income group of Rs. Less than Rs. 10,000.

5. Ranking of different flavors of soft drinks according to

choice

77

of consumers:

Graph 5.1

Interpretation:

The above graph shows that Mango Flavor is preferred most by the male

customers than next is Cola & Lemon is least preferred by them.

The above graph shows that Orange Flavor is preferred most by the

female customers than next is Mango & Cola is least preferred by them.

6. Brand recall of different soft drink brands:

Ranking of Soft Drinks Flavors of Respondents

2

3

1

4

4

1

2

3

0 1 2 3 4

Cola

Orange

Mango

Lemon

Males Females

78

Brand

RecallCola Pepsi Thums up Fanta Slice Mirinda Limca Fruity Maza

Top of

the mind

recall

70% 60% 60% 65% 60% 40% 45% 55% 60%

Unaided

recall30% 40% 40% 35% 40% 60% 55% 45% 40%

Graph 6.1

Brand Recall of different soft drink brands

70

60 6065

60

4045

5560

30

40 4035

40

6055

4540

Pers

ent

Top of the mind recall

Unaided recall

Interpretation:

As the above graph shows that comparatively coke is at the top of the

mind recall by most of customers [70%] and next is Pepsi. In Unaided brand

recall Maza and Fruity.

79

7. Ranking of factors that influence the consumer choice of

soft drink:

Factors Male Female

Taste 1 1

Price 2 5

Health 3 3

Weather 4 2

Social Gathering 5 4

Packaging 6 6

Ads & offers 7 8

Status 8 7

Graph 7.1

Factors that influence the consumer

1

2

3

4

5

6

7

8

1

5

3

2

4

6

8

7

0 1 2 3 4 5 6 7 8

Taste

Price

Health

Weather

Social Gathering

Packaging

Ads & off ers

Status

Rank

Male Female

Interpretation:

Taste ranked as first factor affecting consumer choice by both male &

female consumers. Price is ranked second by male consumers whereas health

factor is ranked by female consumers which affect their choice of soft drinks.

80

8. Consumption per week by consumers:

Less than 5 times

In%6-10 times

In%More

than 10 times

In% Undecided In% Total

Male 47 67% 12 17% 2 3% 9 13% 70

Female 44 74% 8 13% 0 0% 8 13% 60

total 91 70% 20 15% 2 2% 17 13% 130

Graph 8.1

Average consumption per week by Males

67%

17%

3%13%

Less than 5 times 6-10 times More than 10 times Undecided

81

Graph 8.2

Average consumption per week by Females

74%

13%

0%13%

Less than 5 times 6-10 times More than 10 times Undecided

Interpretation:

From the above graph we can say that most of the consumers [70%] are

not having any regular schedule of consuming soft drinks. Both males [13%] &

females [13%] consumer said that it is undecided and only 1.54% consumer

said that they drink more than 10 times in week so it is not definite.

82

9. Quantity of consumption at once:

200ml. In% 300ml. In% 500ml. In%More than

500ml.In% Total

Male 23 33% 28 40% 19 27% 0 0% 70

Female 24 40% 24 40% 12 20% 0 0% 60

Total 47 37% 52 40% 31 23% 0 0% 130

Graph 9.1

Quantity of consumption at once by Males

33%

40%

27%0%

200 ml. 300 ml. 500 ml. More than 500 ml.

83

Graph 9.2

Quantity of consumption at once by Females

40%

40%

20% 0%

200 ml. 300 ml. 500 ml. More than 500 ml.

Interpretation:

From the graphs we can say that [Both males & females] majority of the

consumers [40%] prefer to drink these soft drinks in the quantity of 300 ml. at

once & than next is 200 ml. with [37%] but there is big difference in consumer

response for the rests of the options.

84

10. Drinking Pattern:

With group In% Alone In% Total

Male 58 82.86% 12 17.14% 70

Female 54 90% 6 10% 60

Total 112 87.69% 18 12.31% 130

Graph 10.1

82.85%

17.14%

0.00% 20.00% 40.00% 60.00% 80.00% 100.00%

With group

Alone

Drinking Pattern of Males

Graph 10.2

90%

10%

0% 20% 40% 60% 80% 100%

With group

Alone

Drinrking Pattern of Females

85

Graph 10.3

87.69%

12.30%

0.00% 20.00% 40.00% 60.00% 80.00% 100.00%

With group

Alone

Drinking Pattern of all Respondents

Interpretation:

From the above it is clearly visible that mostly customers [87.69%]

enjoy drinking these soft drinks when they are with group.

86

11. Area of consumption:

Home In %Outside

locationIn %

Cinema

HallsIn %

Social

Gathering

In

%

B/C

partiesIn %

Male 14 20% 30 43% 12 17% 5 7% 9 13%

Female 20 33% 18 30% 18 30% 4 7% 0 0%

Total 34 26% 48 37% 30 23% 9 7% 9 7%

Graph 11.1

Area of consumption for Males

20%

43%

17%

7%13%

At home/off ice At outside locationsAt cinema halls At social gatheringAt corporate/business parties

Graph 11.1

Area of Consumption for Females

33%

30%

30%

7% 0%

At home/off ice At outside locationsAt cinema halls At social gatheringAt corporate/business parties

87

Graph 11.3

Area of Consumption

26%

37%

23%

7% 7%

At home/off ice At outside locationsAt cinema halls At social gatheringAt corporate/business parties

Interpretation:

As the about graphs show that mostly [37%] customers prefer drinking at outside location & at home/office and cinema halls. This means customer drink these drink whenever they go for outing locations.

88

12. Consumer choice when multiple choices are given without price.

Soups In %Hot

drinksIn %

Soft Drinks

In %Fruit

juicesIn % Total

Male 14 20% 9 13% 28 40% 19 27% 70

Female 16 27% 10 17% 20 33% 14 23% 60

Total 30 23% 19 15% 48 37% 33 25% 130

Graph 12.1

Consumer choice when multiple choices are given without price for Males

20%

13%

40%

27%

Soups Hot Drinks Soft Drinks Fruit Juices

Graph 12.2

Consumer choice when multiple choices are given without price for Females

27%

17%33%

23%

Soups Hot Drinks Soft Drinks Fruit Juices

89

Graph 12.3

Consumer choice when multiple choice are given without price

23%

15%

37%

25%

Soups Hot Drinks Soft Drinks Fruit Juices

Interpretation:

From the above graph it is seen that when multiple choice are given to customers without any charge for that i.e. when price factor is excluded, then more than 37% customers prefer to drink soft drinks and next is Fruit juices, soups, tea/coffee respectively.

90

13. Sources of Information:

News Paper

In %T.V. ads

In % Hoarding In %By

retailersIn % Total

Male 12 17% 42 60% 12 17% 4 7% 70

Female 6 10% 42 70% 10 17% 2 3% 60

Total 18 14% 84 64% 22 17% 6 5% 130

Graph 13.1

Source of information for Males

17%

60%

17%6%

New spapers T.V. ads. Hoardings By retailers

Graph 13.2

Source of information for Females

10%

70%

17% 3%

New spapers T.V. ads. Hoardings By retailers

91

Graph 13.3

Source of information

14%

64%

17%5%

New spapers T.V. ads. Hoardings By retailers

Interpretation:

From the above graph it is clearly visible that main source of information to customers regarding soft drinks is T.V. ads according to 64% customers.

92

14. Influence of Brand Ambassador Consumer choice of Soft drinks.

Yes In % No In % TotalMale 49 70% 21 30% 70

Female 24 40% 36 60% 60Total 73 57 130

Graph14.1

70%

30%

40%

60%

0%

20%

40%

60%

80%

100%

Males Females

Influence of Brand Ambassador consumer choice of Soft drinks

No

Yes

Interpretation:

From the above graph clearly depicts that here is a big difference among the response of male & female customer, as in the opinion of most of the male customers [70%] Brand ambassador influences their choice whereas in the opinion of female majority [60%] said that there is no impact of any Brand Ambassador upon their choice.

93

15. Preferred Celebrities as Brand Ambassador according to Consumers:

Bollywood Celebrities

In %Sports

CelebritiesIn % Both In %

Other celebrities

In % Total

Male 30 43% 12 17% 23 33% 5 7% 70Female 16 27% 28 46% 12 20% 4 7% 60

Total 46 35% 40 31% 35 27% 9 7% 130

Graph15.1

Preferred Celebrities as Brand Ambassador according to Males

43%

17%

33%

7%

Bollyw ood Sports Both Other

Graph 15.2

Preferred Celebrities as Brand Ambassador according to Females

27%

46%

20%7%

Bollyw ood Sports Both Other

94

Graph15.3

Preferred Celebrities as Brand Ambassador

35%

31%

27%

7%

Bollyw ood Sports Both Other

Interpretation:

As the graph depicts that highest 35% people said that bollywood celebrities should be the brand ambassador of soft drinks and than 27% were with both but here is big difference among the choice of male & female customers.

95

16. Most preferred sales promotion tools/techniques:

Buy 2 get 1 free

Scratch/ Magic cards

Price discounts

Extra Quantity

offer

Something free

Total

Male 12 7 30 14 7 70Female 14 8 22 10 6 60

Total 26 15 52 24 13 130

Graph 16.1

Most preferred sales promotion tools/techniques by Males

17%

10%

43%

20%

10%

Buy 2 get 1 free Scratch/Magic card Price DiscountExtra quantity offer Something free

Graph 16.2

Most preferred sales promotion tools/techniques by Females

23%

13%

37%

17%

10%

Buy 2 get 1 free Scratch/Magic card Price Discount

Extra quantity offer Something free

96

Graph 16.3

Interpretation:

As per the analysis of above graphs that of the customers [40%] prefer price discounts then there is buy 2 get 1 free offer.

Most preferred sales promotion tools/techniques

20%

12%

40%

18%

10%

Buy 2 get 1 free Scratch/Magic card Price Discount

Extra quantity offer Something free

97

17. Brand Loyalty among Consumers of Soft drinks:

Brand loyal In %Not Brand

loyalIn % Total

Male 28 40% 42 60% 70Female 18 30% 42 70% 60

Total 46 35% 84 65% 130

Graph 17.1

40%

60%

30%

70%

0%

20%

40%

60%

80%

100%

Males Females

Brand Loyalty among Consumers of Soft drinks

No

Yes

Interpretation:

As the above graphs show there are 35% customers who brand loyal but males are having much loyalty in comparison to female’s customers.

98

Fact Findings

1. No. of Respondents:

There were total 130 respondents out of which 70 were males &

60 were females.

2. Age group:

20% respondents fall into the age group of 10-20 years.

37% respondents fall into the age group of 21-30 years.

28% respondents fall into the age group of 31-40 years.

15% respondents fall into the age group of more than 40years.

3. Occupation of respondents:

28% of the respondents were Service.

10% of the respondents were Business

13% of the respondents were Professionals

47% of the respondents were Students & housewives etc.

4. Income group of respondents:

61% of the respondents fall into the income group of less than

Rs.10,000.

10% of the respondents fall into the income group of 10,000-

15,000.

13% of the respondents fall into the income group of 15,000-

20,000.

16% of the respondents fall into the income group of more than

Rs.20,000.

99

5. Ranking of factors that influence the consumer choice of soft drink:

Taste ranked as first factor affecting consumer choice by both

male & female consumers.

Price is ranked second by male consumers whereas health factor

is ranked by female consumers which affect their choice of soft

drinks.

6. Ranking of different flavors of soft drinks according to choice of

consumers:

Mango Flavor is preferred most by the male customers than next

is Cola & Lemon is least preferred by them.

Orange Flavor is preferred most by the female customers than

next is Mango & Cola is least preferred by them.

7. Brand recall of different soft drink brands:

Comparatively coke is at the top of the mind recall by most of

customers [70%] and next is Pepsi. In Unaided brand recall

Maaza and Fruity.

8. Consumption per week by consumers:

70% of the consumers said that their consumption per week of

soft drink is less than 5 times.

15% of the consumers said that their consumption per week of

soft drink is 6-10 times.

2% of the consumers said that their consumption per week of soft

drink is more than 10 times.

100

13% of the consumers said that their consumption per week of

soft drink is Undecided.

9. Quantity of consumption at once:

37% of the consumers like to drink 200 ml. of soft drinks at once.

40% of the consumers like to drink 300 ml. of soft drinks at once.

23% of the consumers like to drink 500 ml. of soft drinks at once.

Zero of the consumers like to drink more than 500 ml. of soft

drinks at once.

10.Drinking Pattern:

87.69% of the consumers enjoy drinking soft drinks in group.

12.31% of the consumers enjoy drinking soft drinks alone.

11.Area of consumption:

26% mostly consume these drinks at home/offices.

37% mostly consume these drinks at outside location.

23% mostly consume these drinks at cinema halls.

7% mostly consume these drinks at social gatherings.

7% mostly consume these drinks at business/corporate parties.

12.Consumer choice when multiple choices are given without price.

23% customers prefer to drink soups when price factor is

excluded.

15% customers prefer to drink hot drinks when price factor is

excluded.

37% customers prefer to drink soft drinks when price factor is

excluded.

25% customers prefer to drink Fruit juices when price factor is

excluded.

101

13.Source of information:

14% of the consumers said that they get information regarding

different brands of soft drinks through News paper Ads.

64% of the consumers said that they get information regarding

different brands of soft drinks through T.V. Ads.

17% of the consumers said that they get information regarding

different brands of soft drinks through hoardings.

5% of the consumers said that they get information regarding

different brands of soft drinks through by retailers.

14. Influence of Brand Ambassador Consumer choice of Soft drinks.

70% of males consumers said that there choice is influenced by

brand ambassadors.

Whereas 60% of the female’s consumers said that there choice is

not influenced by any brand ambassadors.

15.Most preferred sales promotion tools/techniques:

20% of the consumers like Buy 2 get 1 free.

12% of the consumers like Scratch/ Magic cards.

40% of the consumer like Price discounts.

18% of the consumer like Extra Quantity offer.

10% of the consumers like something free.

16.Brand Loyalty among Consumers of Soft drinks:

40% male consumers were brand loyal and:

Only 30% female consumers were brand loyal for soft drink.

102

Conclusion

Through this research study we conclude that –

There many flavors but Mango flavor is liked most by the

consumer. Cola & mango are also popular among male & female

consumer respectively.

Generally people are not having any regular timing or drinking soft

drink but we can assume that on an average every customer drink

these drinks less than 5 times in a week.

Generally people prefer to drink 300 ml. quantity of soft drink at

once.

Most of consumer s drinks such soft drinks in group.

Generally people drink these drinks at outside locations whenever

they go for outing & cinema halls.

If price factor is not taken into consideration & multiple choices

are given to consumer then they prefer soft drink most.

The most popular source of information regarding soft drink

brands is T.V.

Brand ambassador has the influence on choice of most of the

male consumer. But there is comparatively less influence on

female consumer.

According to most of the male consumers bollywood celebrities

should be the brand ambassador where as according to the most

of female consumers sports celebrities should be the brand

ambassador for endorsing soft drinks.

The three most preferred sales promotion techniques are price

discount, but to get one free & something free with product

respectively.

103

Half of the male consumers are brand loyal whereas female

consumers are comparatively less who the brand loyal is.

The most influencing factor is price. According male consumers

price is also having more influence but according to female’s

health factor is much more influencing than price as they may be

very health conscious.

104

Suggestions

Promotion of mango flavor :

Companies should focus more on the promotion of mango flavors of soft

drinks because comparatively to cola drinks mango flavored drinks are

very less advertised & promoted by soft drink brands where as according

to our result cola flavor is more preferred by most of the consumers.

Maintaining taste & keep launching innovative flavors :

Companies should maintain the taste of it’s flavored drinks should keep

improving the taste & quality of it’s drinks, companies may also launched

some innovative mixed flavors of drinks where two flavors in one drink

can be provide like orange-pineapple etc. it will give a different taste of

customers.

Reduction in price :

Price is also major factor of consumer’s choice of soft drinks. So

companies should try to decrease it’s price by decreasing it’s

extravagant expenditure in advertisement to trap the market of those

customers whose choice is very much affected with the price of soft

drinks.

Diet drinks :

Health is also a major factor influencing consumer choices of many

consumers. So fruit juice are giving tough competition to soft drinks.

Companies should advertised its product in a manner in which it’s

reflects that consuming their drinks will not harm any body. As coke &

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Pepsi have already lunched it’s drinks for the segment which is very

much health conscious i.e. Diet Coke & Diet Pepsi respectively which

are fat free. But companies should launch diet drinks in other flavors

also. Especially in mango flavor as it is preferred by most of the

consumers. Companies should try to win the trust of consumers that

these drinks are not having pesticides contents more than limits by

sponsoring some rational appeal based advertisement.

Quantity discounts :

Companies should try to increased the sales of it’s drinks for the purpose

of increasing it’s offering in parties. As in parties consumers mostly

prefer soft drinks even after having multiple choices, companies should

provide quantity discount as in parties more quantity is purchased at

once.

Humorous, creative & sensible ads :

As companies are already promoting their brands through T.V. ads but

companies should take very much care of the target segment & should

ensure that no ad should hurt the person directly or indirectly. Now a

day’s ad with humorous appeals are like by viewers very much so there

should be humorous creative ads on T.V.

Selection of brand ambassador :

Companies should get the endorsement from both Bollywood & Sports

celebrities as most as the people like those ads where both of these

celebrities endorse the product together.

Sales promotion :

For sales promotion companies should give the price discount as it is

preferred by most of the customers. In of seasons companies already

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provide but if in the summer companies should price discount then it can

be boost up there sales both in Rupees & volume. Companies should

bye to get one free schemes also some complementary product also

may be given with big bottle i.e. like two ltr. Bottle of soft drinks

companies may give wafers & snakes etc.

Brand loyalty :

As there were not more customers who are brand loyal & easily switch

on to other brands. So companies should strengthen it’s distribution

network & ensure the proper supply & arability of there drinks to prevent

people switching on to other brands, companies should also organized

activities and should do programs, seminars for social & moral causes to

build it’s brand image & brand loyalty amongst the customers.

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SWOT ANALYSIS OF ORGANISATION

Strengths:

Those are large Organization Capturing a Broad Market It is Multinational Company Proper Utilization of Man Power Product are highly demanded in Market

Weaknesses:

Service is not up to the mark Unable to penetrate a large no. Of rural areas Unable to break up the monopoly of competition Reducing the brand loyalty of the consumer

Opportunities:

Large number of consumer Large Market segment By removing weaknesses company could be ultimate leader

Threats:

Existence of Local Soft Drink Boycott of soft drinks due to Swedishi Movement Different offers and Schemes provided by the other soft drink companies

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Annexure

“Questionnaire for the study of factors affecting consumer choice of soft-drinks”

Name………………………………………………………………………Gender: [ ] Male [ ] FemaleAge group: [ ] 10-20 years [ ] 21-30 years

[ ] 31-40 years [ ] More than 40 yearsOccupation: [ ] Service [ ] Business

[ ] Professional [ ] Student[ ] Housewife [ ] Others________

Income group (p.m.) [ ] Less than Rs.10,000 [ ] 10,000-15,000 [ ] 15,000-20,000 [ ] More than Rs. 20,000

1. Please rank the following flavors of soft drinks that you like most. Cola_______ Orange________ Mango_____ Lemon________

2. Please name the brands of soft drinks, which you remember.

_________________________________________________

3. Please name the brand/s of soft drinks that you like most for following flavors. Cola_______ Orange________ Mango_____ Lemon________

4. Please name the following that influence your decision when you purchase a soft drink? (On 1-8 scale, where 1 is highest & 8 is lowest rank)Taste________ After effects/Health_________Price________ Occasion/Social Gathering_______Packaging______ Advertisement & offers_________Weather/Heat_____ Status__________

5. How many times you drink these beverages in a week?[ ] Less than 5 times [ ] 6-10 times[ ] more than 10 times [ ] Undecided

6. How much quantity of these do beverages do you consume at once?[ ] 200 ml. [ ] 300 ml[ ] 500 ml. [ ] More than 500 ml..

7. You enjoy drinking these drinks?[ ] With group [ ] Alone

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8. Mostly where do you consume such drinks?[ ] At home/office [ ] At outside locations[ ] At cinema halls [ ] At social gathering[ ] At corporate/business parties [ ] others_____

9. In a party, if following drinks are offered to you then whom drink you would like to take?[ ] Soups [ ] Hot drinks/coffee/Tea[ ] Cold/Soft drinks [ ] Fruit juices

10. How do you get information regarding the different brand & flavors of these beverages available in the market?[ ] Newspapers ads. [ ] T.V. ads.[ ] Hoardings & Banners [ ] By retailers[ ] Other________

11. Dose any brand ambassador of these drinks influence your choice?[ ] Yes [ ] No

12. Please name any brand & its brand ambassador.Brand name_____________ Brand ambassador ____________

13. According to you, who should be the brand ambassador for soft drink?[ ] Bollywood celebrities [ ] Sports celebrities[ ] Both [ ] Other celebrities_______

14. Which of the following sales promotion tools/techniques do you like most for soft drink?[ ] Buy two get 1 free [ ] Scratch/Magic card[ ] Price discount [ ] Extra quantity offer[ ] Something free [ ] Others__________

15. Do you easily switch on to other brand when you do not get your favorite & desired brand/s for these drinks?[ ] Yes [ ] No

Thanks very much for your kind support & cooperation.

With Best Regards Deepak Chechani

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BIBLIOGRAPHY

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Bibliography

Websites :

I. www.google.co.in

II. www.pepsico.com

III. www.cocacola.com

Books :

I. C.R. Kothari

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