Part2..Final Mpr

8/8/2019 Part2..Final Mpr

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INTRODUCTION Today many new companies are coming into existence because of which thecompetition is also growing rapidly. The soft drink industry is mainly suffering

with this particular problem. The companies have to continuously compete with

their competitors to get good market share and suitable profit. To face their

competitors they have to know their position and the competitors position in the

market. For this, the company compares itself with its competitors by carrying out

a comparative analysis in all aspect.

Item by Item comparison of two or more comparable alternatives

processes, products, qualifications, set of data and systems etc. in accounting for,

for example changes in a financial statements item over several accounting period

may be presented together to detect the emerging trends in the firms operations

and results.

From this we can understand that comparative analysis means the comparison between the similar things (product, place, technologies, living beings and etc.)

regarding the features, nature, functions, behavior, SWOT, and many other

characters is called Comparative Analysis. In this comparative analysis, the

researcher will take any two or more similar products (that means the functioning

of the products are almost same) and compare the common features of the products

to find out that which product is the best amongst them.

PEPSI and COLA were in India from 1956-61 and left the country, as its products

were not acceptable by the Indian customers. But recently in 1990 it re-entered the

Indian market, where by PEPSI FOOD LIMITED was entered into a joint venture

with PEPSI INTERNATIONAL, TATA and VOLTAS.


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OBJECTIVES OF THE STUDY

1. To know the market share of PEPSI Co. as against COKE.2 . To know the perception regarding soft drinks especially PEPSI.

3. To know the customers satisfaction regarding PEPSI in

comparison with COKE.

4. To determine the factors influencing the choice of customers

regarding soft drinks.


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RESEARCH METHODOLOGY

It is well known fact that the most important step in marketing research process is

to define the problem. Choose for investigation because a problem well defined is

half solved. That was the reason that at most care was taken while defining various

parameters of problem. After giving through brain storming session, objectives

were selected and the set on the base of these objectives. A questionnaire was

designed major emphasis of which was gathering new ideas or insight so as to

determine and bind out solution to the problems.

DATA SOURCE

Research included gathering both primary and secondary data.

PRIMARY DATA

This consists of questionnaire and interaction with various people. A focus group

study was conducted to design the survey questionnaire with sample size of 50respondents.

This survey was conducted in Delhi

Sample size: 50

Sample Area: Delhi

SECONDARY DATA

Sources included are primarily from internet /newspapers/annual reports and

presentation.


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METHODOLOGICAL OVERVIEW

An experimental design was developed with 50 direct interviews across Delhi.

These interviews were carried out by means of a questionnaire in order to find out

the quantitative aspect related to the study. A graphical method is used for analysis

and presentation of data.


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LIMITATIONS

1. The research has been carried out in one particular area or region.Therefore, the information may not be applicable to other parts of

the country because of social and cultural differences.

2 . Time allocated for the study is also a reason of

incomprehensiveness.

3 . The information provided by the people is biased. Thus, it might

not reflect the real picture.


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CHAPTER-2

PEPSI COMPANYOVERVIEW


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COMPANY PROFILE

Type Public(NYSE: PEP)Industry Food

BeveragesFounded New Bern, North Carolina, U.S. (1898)Founder(s) Caleb Bradham

Donald M. KendallHerman W. Lay

Headquarters Purchase, new York,U.S.

Area served WorldwideKey people Indra NooyiProducts Pepsi

Diet PepsiMountain dewAMP EnergyAquafinaSierra mistSoBeStarbucks FrappuccinoLipton iced tea7 upMirindaIzzeTropicana productsCopella

Naked juiceGatoradePropel fitness water

Quaker oats companyLaysDoritosCheetosKurkureFritosRold gold


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RufflesTostitosSlice

Revenue US$ 44.3 billion

Operating income US$7

.3 billionNet income US$ 6.2 4 billionTotal assets US$ 39.8 Billion ( FY 2009 )[ Total equity US$ 16.8 Billion ( FY 2009 )[ Employees 2 03,000 ( 2010 )Divisions PepsiCo Americas (PepsiCo America

Food, PepsiCo Americas Beverages),PepsiCo International

Website Pepsico.com

PepsiCo is the Most Admired beverages corporation in the world and is ranked

in the Top 2 0 Most Admired Star Corporations across the globe. PepsiCo

headquartered in Purchase, New York, with research and development

headquarters in Valhalla, NY. The Pepsi cola company began in 1898, but it only

became known as PepsiCo when it merged with Frito Lay in 1965. In 1998 it

brought Tropicana and in2

001 merged with The Quaker Oats Company, includingGatorade. PepsiCo offers a wide variety of product choices to meet needs and

preferences- from fun-for-you items to product choices that contribute to healthier

lifestyles. It takes into consideration the preferences of the consumers.

PepsiCo entered India in 1989 and has grown to become one of the countrys

leading food and beverage companies. One of the largest multinational investors in

the country, PepsiCo has established a business which aims to serve the long termdynamic needs of consumers in India.

PepsiCo India and its partners have invested more than U.S.$ 7 00 million since the

company was established in the country. PepsiCo provides direct employment to


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4,000 people and indirect employment to 60,000 people including suppliers and

distributers.

PepsiCo nourishes consumers with a range of products from treats to healthy needs

that delivers joy as well as nutrition and always good taste. PepsiCo Indias

expansive portfolio includes iconic refreshment beverages Pepsi, 7 up, Mirinda and

Mountain Dew, in addition to low calorie options such as Diet Pepsi, hydrating and

nutritional beverages such as Aquafina drinking water, isotonic sports drink-

Gatorade, Tropicana 100% fruit juice and other juice based drinks- Tropicana

nectars, Tropicana twister and slice. Local brands- Lehar Evervess Soda, Dukes

Lemonade and Mangola add to the diverse range of brands.


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OUR MISSION AND VISION

At PepsiCo we believe in being a responsible corpora t e ci t izen is no t only th e rig ht

th ing t o do, bu t th e rig ht th ing t o do for our business.

Our Mission

The mission is to be the world's premier consumer Products Company focused on

convenient foods and beverages. We seek to produce financial rewards to investors

as we provide opportunities for growth and enrichment to our employees, our

business partners and the communities in which we operate. And in everything we

do, we strive for honesty, fairness and integrity.

Our Vision

"PepsiCo's responsibility is to continually improve all aspects of the world in

which we operate - environment, social, economic - creating a better tomorrow

than today."


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Our vision is put into action through programs and a focus on environmental

stewardship, activities to benefit society, and a commitment to build shareholder

value by making PepsiCo a truly sustainable company.

Performance with Purpose

At PepsiCo, people are committed to achieving business and financial success

while leaving a positive imprint on society - delivering what they call Performance

with Purpose .

Their approach to superior financial performance is straightforward - drive

shareholder value. By addressing social and environmental issues, they also deliver

on their purpose agenda, which consists of human, environmental, and talent

sustainably.


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PEPSI CO VALUES AND PHILOSOPHY

Our Values & Philosophy are a reflection of the socially and environmentally

responsible company we aspire to be. They are the foundation for every business

decision we make.

Our Commitment

We are committed to delivering sustained growth through empowered people

acting responsibly and building trust.

What It Means

Sustained Growth is fundamental to motivating and measuring our success. Our

quest for sustained growth stimulates innovation, places a value on results, and

helps us understand whether today's actions will contribute to our future. It is about

the growth of people and company performance. It prioritizes both making a

difference and getting things done.

Empowered People means we have the freedom to act and think in ways that we

feel will get the job done, while adhering to processes that ensure proper

governance and being mindful of company needs beyond our own.

Responsibility and Trust form the foundation for healthy growth. We hold

ourselves both personally and corporately accountable for everything we do. We

must earn the confidence others place in us as individuals and as a company. By

acting as good stewards of the resources entrusted to us, we strengthen that trust by

walking the talk and following through on our commitment to succeeding together.


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PEPSI CO FAMILY

Meet the four major divisions of the PepsiCo family : PepsiCo Americas

Beverages, PepsiCo Americas Foods, PepsiCo Europe, PepsiCo Middle Eas t and

A frica.

PepsiCo Americas Beverages

Pepsi was founded in 1898 by Caleb Bradham, a New

Bern, North Carolina, druggist, who first formulated

Pepsi-Cola.

Today, Brand Pepsi is part of a portfolio of beverage

brands that includes carbonated soft drinks, juices and

juice drinks, ready-to-drink teas and coffee drinks,

isotonic sports drinks, bottled water and enhanced

waters. PepsiCo Americas Beverages (PAB) has well known brands such as

Mountain Dew, Diet Pepsi, Gatorade, Tropicana Pure Premium, Aquafina water,Sierra Mist, Mug, Tropicana juice drinks, Propel, SoBe, Slice, Dole, Tropicana

Twister and Tropicana Season's Best.

In 199 2 PAB formed a partnership with Thomas J. Lipton Co. to sell ready-to-

drink tea brands in the United States. Pepsi-Cola also markets Frappuccino ready-

to-drink coffee through a partnership with Starbucks.

Tropicana was founded in 194 7 by Anthony Rossi as a Florida fruit packaging

business. In 1954 Rossi pioneered a pasteurization process for orange juice. For the

first time, consumers could enjoy the fresh taste of pure not-from-concentrate

100% Florida orange juice in a ready-to-serve package. The juice, Tropicana Pure


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Premium, became the company's flagship product. PepsiCo acquired Tropicana,

including the Dole juice business, in August 1998.

SoBe became a part of PAB in 2 001. SoBe manufactures and markets an

innovative line of beverages including fruit blends, energy drinks, dairy-based

drinks, exotic teas and other beverages with herbal ingredients.

Gatorade thirst quencher sport drinks, was acquired by The Quaker Oats Company

in 1983 and became a part of PepsiCo with the merger in 2 001. Gatorade is the

world's first isotonic sports drink as is backed by 40 years of science. Created in

1965 by researchers at the University of Florida for the school's football team,

"The Gators," Gatorade is now the world's leading sport's drink.

Pepsi Beverages Company

On February 2 6th, 2 010, PepsiCo completed its mergers with PAS and PBG to

strengthen its North American beverage business. The North American bottling

operations of PAS and PBG are now an operating unit of PepsiCo known as Pepsi

Beverages Company. PBC operates in the United States, Canada and Mexico and

encompasses approximately 7 5 percent of PepsiCo's North American beverage

volume. PBC's diverse portfolio includes some of the world's most widely

recognized beverage brands, including Pepsi, Mountain Dew, Sierra Mist,

Aquafina, Gatorade, SoBe, Lipton, and Amp Energy. PBC also manufactures and

distributes third-party brands in key local markets such as Dr Pepper, Crush, Rock

Star and Muscle Milk. The operating unit is headquartered in Westchester County,

New York.


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PepsiCo American Food

PepsiCo Americas Foods (PAF) is PepsiCo's food and snack business in North and

South America. Its portfolio of businesses includes Frito-Lay North America,

Quaker Foods & Snacks, Sabritas, Gamesa and Latin America Foods.

Frito-Lay North America

In 193 2 , C.E. Doolin entered a small San Antonio cafe and purchased a bag of corn

chips. Little did he dream this savory chip would become one of the nation's most

popular snacks. Mr. Doolin learned that the manufacturer of the chips was eager to

sell his small business, so he purchased the recipe, and began to sell FRITOS

Corn Chips from his Model T Ford.

Meanwhile, that same year, Herman W. Lay began his potato chip business in

Nashville by delivering snack foods. Not long after, Mr. Lay purchased the

manufacturer, and the H.W. Lay & Company was formed. H.W. Lay & Company

became one of the largest snack food companies in the Southeast, and LAY'S

brand Potato Chips is still America's favorite potato chip.

Years later, in 1961, the Frito Company and the H.W. Lay Company merged to

become Frito-Lay, Inc. Today, Frito-Lay North America makes some of the most

popular snacks in the US, including LAY'S and RUFFLES potato chips,

DORITOS tortilla chips, TOSTITOS tortilla chips and dips, CHEETOS

cheese flavored snacks, FRITOS corn chips, ROLD GOLD pretzels,

SUNCHIPS multigrain snacks, CRACKER JACK candy coated popcorn.

Quaker Foods North America

The Quaker Oats Company was formed in 1901 when several American pioneers

in oat milling came together to incorporate. In Ravenna, Ohio, Henry D. Seymour

and William Heston had established the Quaker Mill Company. The figure of a


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man in Quaker clothes became the first registered trademark for breakfast cereal

and remains the hallmark for Quaker Oats today.

In Cedar Rapids, Iowa, John Stuart and his son, Robert, and their partner, George

Douglas, operated the largest cereal mill of the time. Ferdinand Schumacher,

known as "The Oatmeal King," had founded German Mills American Oatmeal

Company in 1856.

Combining The Quaker Mill Company with the Stuart and Schumacher businesses

brought together the top oats milling expertise in the country as The Quaker Oats

Company.

The first major acquisition of the company was Aunt Jemima Mills Company in

192 6, which is today the leading manufacturer of pancake mixes and syrup.

Gatorade was acquired in 1983.

In 1986, The Quaker Oats Company acquired the Golden Grain Company,

producers of Rice-A-Roni. Its brands today include Quaker oatmeal, Life and

Cap'n Crunch ready-to-eat cereals, Aunt Jemima mixes and syrups, and Rice-A-Roni, Pasta Roni and Near East side dishes. PepsiCo merged with The Quaker Oats

Company in 2 001.

Sabritas

Headquartered in Mexico City, Sabritas is a leader in the Mexican snack and fun

food market. Founded in 1943, Sabritas is renowned for the quality, variety and

flavors of its products, and serves as the umbrella brand under which PepsiComarkets Frito-Lay products in Mexico, such as Cheetos, Fritos, Doritos and

Ruffles. It is also the name brand for its own line of potato chips. Additionally, the

business manufactures and markets several local brands such as Crujitos, Poffets,


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Rancheritos and Sabritones. Sabritas controls around 80% of the Mexican snacks

market. PepsiCo acquired Sabritas in 1966.

Gamesa

Headquartered in Monterrey, Mexico, Gamesa is a global leader in the cookies

market, and Mexico's largest manufacturer of cookies. The company has offered its

consumers a wide variety of high-quality products for every lifestyle, producing

pastries, oats, cereals and other related products. It has production facilities in five

states across Mexico. Among its most successful brands are Maras Gamesa,

Emperador, Arcoiris, Mamut, Chokis, and Maizoro. In 1990, it was acquired by

PepsiCo.

Latin Americas Foods

The Latin Americas Foods business includes operations in Brazil, Argentina,

Colombia, Peru and Venezuela. Its portfolio of brands includes global snacks such

as Lay's, Cheetos, Fritos and Doritos, as well as local brands like Lucky snacks in

Brazil.

PepsiCo Europe

PepsiCo Europe is the leading food and beverage company in Europe employing

43,000 in the region. The company has a presence in 45 countries in Europe and

has a broad range of offerings including Frito Lay Snacks, Pepsi-Cola beverages,

Gatorade sports drinks, Tropicana juices and Quaker foods.

The company has invested over $3 billion in the region over the last 3 years

including the acquisitions of Lebedyanasky, a popular juice company in Russia,

and Sandora, an Ukranian juice company.


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Some of the most popular products in the region include Walkers Crisps, Quaker

Oats, Paw Ridge, Pepsi, Diet Pepsi, Pepsi MAX, Pepsi RAW, 7 UP, Copella,

Doritos, Gatorade, Red Sky, V Water, Planet Lunch, Lays, Cheetos, Smiths,

Duyvis, Snack-a-Jacks, Quaker Cruesli, Looza, Twistos, and Solinki.

The company has made large investments in the region in its "healthier for you"

portfolio which include:

y More than 2 0 million Euros in a flagship European R&D centre, which is

dedicated to creating new, healthier snacks for the European market.

y In the UK alone, we've invested over 180 million Euros in making our products

healthier, such as Walkers crisps, which now contain 7 0% less saturated fat and up

to 55% less salt than they did five years ago.

y Lower fat, baked Cheetos in Turkey

y have introduced a range of dry roasted nuts with 30% less fat

y In the UK we are about to launch a '99 Calorie or less snacks range

y Pepsi Max, no sugar, full flavour soft drink in the UK and the Nordics

PepsiCo Asia, Middle East and Africa

PepsiCo Asia, Middle East & Africa (AMEA) makes, markets and sells a

number of leading snack food brands including Lays, Kurkure, Chipsy, Doritos,

Smiths, Cheetos, Red Rock Deli and Ruffles, through consolidated businesses as

well as through noncontrolled affiliates. Further, either independently or through

contract manufacturers, AMEA makes markets and sells many Quaker-brand

cereals and snacks. AMEA also makes markets and sells beverage concentrates,

fountain syrups and finished goods, under various beverage brands including


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Pepsi, Mirinda, 7 UP and Mountain Dew. These brands are sold to authorized

bottlers, independent distributors and retailers. However, in certain markets,

AMEA operates its own bottling plants and distribution facilities. In addition,

AMEA licenses the Aquafina water brand to certain of its authorized bottlers.AMEA also, either independently or through contract manufacturers, makes

markets or sells ready-to-drink tea products through an international joint venture

with Unilever (under the Lipton brand name).


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CHAPTER-3ANALYSIS AND

INTERPRETATIONOF DATA


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DATA ANALYSIS AND INTERPRETATION

Q1. Do you prefer soft drinks over juices?

Yes 43%

No 5 7 %

INTERPRETATION:

Soft drinks are giving a hard competition to juices, considering the fact that juice ishealthier than any soft drink still people do prefer soft drinks over juice. But with adifference of 14% juice leads the league.

0%

1 0%

20%

30%

40%

50%

60%

response

yes no


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Q2 . Do you feel aerated drinks should be banned?

Yes 15%

No . 85%

INTERPRETATION:

The survey involved a significant number of youth and they feel that theresnothing harm in drinking aerated drinks given the surety that it does not containany harmful chemicals. While, some do feel it should be banned.

0%

1 0%

20%

30%

40%

50%

60%

70%

80%

90%

reponse

yes

no


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Q3. Which brand do you prefer?

Pepsi 45%

Coke .30%

Both . 2 5%

INTERPRETATION:

It can be clearly seen that Pepsi is preferred more over coke. Coke somehow needsto work on its popularity and bag for the customers first choice.

0%

5%

1 0%

1 5%

20%

25%

30%

35%

40%

45%

response

pepsi

coke

both


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Q4. Do you find any noticeable change in the taste of these two drinks?

Yes 13%

No 58%

Cannot say 2 9%

INTERPRETATION:

58% of people dont find any noticeable change in the taste of any of the two brands. On the other hand, 13% of the people do find some change in the taste andthe rest are not sure.

0%

1 0%

20%

30%

40%

50%

60%

response

yes

no

cannot say


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Q5. Which tastes better?

Pepsi .. 4 7 %

Coke ... 35%

Both.18%

INTERPRETATION:

The main factor which influences people to buy any drink is its taste. Heremaximum number of people (4 7 %) like the taste of Pepsi while 35% of them likecoke and the rest feel both have their own good taste which distinguishes them.

0%5%

1 0%

1 5%

20%

25%

30%

35%

40%

45%

50%

response

pepsi

coke

both


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Q6. Which brand is easily available in the market?

Pepsi ..3 2 %

Coke ... 2 4%

Both.44%

INTERPRETATION:

44% of people think that both Pepsi and Coke are easily available in a market.While, 3 2 % of them feel Pepsi is easier to access and the rest find Coke more

easily available.

0%

5%

1 0%

1 5%

20%

25%

30%

35%

40%

45%

response

pepsi

coke

both


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Q7 . How do you come to know about these two brands?

Television 69%

Newspaper 2 0%

Others 11%

INTERPRETATION:

These days, media plays an important role by providing information aboutdifferent products. Same is the case with Pepsi and Coke, maximum number of

people i.e. 69% get to know about the two brands through television, 2 0% throughnewspaper and rest through other means.

0%

1 0%

20%

30%

40%

50%

60%

70%

response

television

newspaper

others


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Q8. Does advertisement play an important role in choosing a certain brand?

Yes .. 7 3%

No .. 27 %

INTERPRETATION:

The survey conducted shows that advertisement does become a link between the product and its consumers. Majority of people are inclined towards a brand because of its advertisement.

0%

1 0%

20%

30%

40%

50%

60%

70%

80%

response

yes

no


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Q9. Whose advertisement influences you in a better way than the others?

Pepsi ..59%

Coke ... 2 4%

Both 1 7 %

INTERPRETATION:

Advertisement these days play a crucial role in attracting customers. And the abovedata clearly tells us that Pepsi is working hard in promoting its product because of

which 59% people find Pepsis advertisement more attractive and innovative.

0%

1 0%

20%

30%

40%

50%

60%

response

pepsi

coke

both


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Q10. Which brand you feel needs improvement?

Pepsi .41%

Coke .59%

INTERPRETATION:

The result indicates that Coke needs to improve more as compared to Pepsi inorder to attract more consumers and do well in the market.

0

1 0

20

30

40

50

60

response

pepsi

coke


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Amongst the leading rivals in the beverage industry, Coca-Cola and Pepsistruggle to remain on the top and prove to be the fiercest competition for eachother. Keeping up their reputation and serving the masses since the past manydecades, Coke and Pepsi both have similar problems, such as having

inappropriate ingredients that are not suitable for different nations, like India, dueto the cultural differences. For the sake of their future growth, these companiesare seen to compromise in order to have their status and figures remaining on thetop. Both the drinks continue to confuse the consumers in the competition of wanting to be the best. Basic Statistics

When it comes to the essential figures, we have seen that Pepsi has more

advantages whereas coke is getting superior figures. Pepsi wins the game when it

comes to making revenues and creating profit margins and it has been noted that

since the past few months, Pepsi has updated itself more than Coke has. This is

an indication that the investment banks are favoring Pepsi over coke. However,

the companies aim to secure better measures in the future of promising markets

which may bring them loss at one time but in the longer run, there is an increase

in the economies of scale.

Success on Individual Basis

Pepsi has had constant growth during its occupancy in a stable pattern that shows

promises of future expansion. Even though the customers do not like the speed of

the pattern, long-term investors favor Pepsi exactly for this reason and therefore,


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the boost in price. The company is in their "maturity" state where the product is

said to be enjoying the maximum economies of scale and can carry this success

for quite a while, if the right tactics are used. If a company invests in Pepsi today,

by 2 015, Pepsi promises to rise almost 100 points more. You need to be patient

when it comes to investing in such areas of business and to give you satisfaction,

you get to see the capital increase over the years. However, Coca-Cola is not seen

to be giving the same fluctuation to the investors as it changes in a $5 range. This

may attract those who believe in fixed income but since the past decade, no

significant rise has been seen nor are there any signs of possible expansion. Cokehas tried to add to its value to the maximum but it is feared to experience

diseconomies of scales sometime in the near future.

Marketing Strategies

Pepsi is expanding itself by focusing on CEO's that are of different cultures andthis is the reason it is being a step ahead of Coca-Cola. Coke therefore needs to

have different strategies to gain popularity in different parts of the world and

match the steps that Pepsi is taking.


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PRODUCT MIX

PRODUCTLINELENGTH

PRODUCT MIX WIDTHSOFT DRINKS DRINKING WATER PEPSI COKE PEPSI COKE

American Marketing Association defines a brand as a name, term, symbol or

design, or a combination of them, intended to identify the goods or services of one

seller or group of sellers and to differentiate them from those of competitors.


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SLOGAN WAR

The world is divided. Some people enjoy the classic feeling. Others prefer to be thenext generation. Whether you are a Pepsi or a coke fan boy, you have witnessed

the constant war between the two giants. When you place this war under the

microscope, its possible to see hoe these two companies have tried to change their

brand awareness during the years, trying to overcome each other.

When it was first introduced back in 1886, Coke didn't have much opponents in the

cola drink market. That until 1898 when Pepsi was released and the rivalry between these two exploded, making the need for brand positioning really urgent

for both.

In marketing, positioning has come to mean the process by which marketers try to

create an image or identity in the minds of their target market for its product,

brand, or organization. It is the 'relative competitive comparison' their product

occupies in a given market as perceived by the target market.

Since both were developed and introduced by pharmacists, they claimed that both

drinks had medicinal properties. Coke's 1900 slogan was "For headache and

exhaustion, drink Coca-Cola" , while Pepsi's 1903 slogan was "Exhilarating,

Invigorating, Aids Digestion". In 1929, Pepsi claimed: "Here's Health!"


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Coke has been selling a "refreshing" and "satisfying" image for a longer time thanPepsi. Here's a quick list of slogans that remind us a lot of those we see today:

y 1904 - Coca-Cola satisfies

y 1904 - Delicious and Refreshing

y 1905 - Good all the way down

y 1906 - Thirst quenching - delicious and refreshing

y 1907 - Cooling... refreshing... delicious

y 1909 - Delicious, wholesome, refreshing

y 1909 - Delicious, wholesome, thirst quenching

y 1909 - Drink delicious Coca-Cola


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On the other hand, Pepsi tried to show that their drink was better for small pockets,

having more ounces of drink available in each bottle.

y 1934 - Double Size

y 1939 - Twice as Much for a Nickel

y 1943 - Bigger Drink, Better Taste

y 1949 - Why Take Less When Pepsi's Best?

After that, since Coca-Cola was the top selling cola drink for so long, Pepsi started

to change their awareness. Pepsi had to find a way to make people think differentof what they were used to. Making Coke look old was the solution they found.

y 1961 - Now It's Pepsi for Those Who Think Young

y 1963 - Come Alive! You're in the Pepsi Generation

y 1984 - The Choice of a New Generation

y 1989 - A Generation Ahead

y 1993 - Be Young, Have Fun, Drink Pepsiy 1997 - Generation Next

Although its reign was never trembled by Pepsi, Coke replied these slogans

reaffirming its untouchable quality and tradition.


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CHANGING LOGO

Considering the saying first impression is the last impression, in this section wewill study the impact of logos on the consumers of a soft drink especially Pepsi and

coke. Logo is the very first thing that is noticed and has the power to attract

customers. Thus, a company should try and do something innovative that would

help gain the consumers for its product.

Pepsi is one of the world's most famous brands much like its rival Coca Cola. Pepsi

Cola was originally called Brad's Drink after its creator, Caleb Bradham, a

pharmacist from North Carolina. Pepsi was a carbonated soft drink he created to

serve his drugstore's customers. The new name, Pepsi-Cola, was first used on

August 2 8. The Pepsi logo is a simple globe with the Pepsi colors in the

background and the word Pepsi in the foreground. Pepsi has changed its logo and

its slogans a number of times since its introduction in 1898.

The evolution of the Pepsi and Coca-Cola logos from their beginnings in the late

nineteenth century to their current state at the end of the 2 000s. The comparison

chart mocks the ever-changing personality of the Pepsi logo in contrast to Coca-

Colas stoic script logo, unaffected by the effects of time. The philosophical point

it makes is indeed funny and, for the most part, accurate: Coca-Cola has long been

the steady brand that triumphs over Pepsi as the latter attempts to gain ground with

brand gimmicks and changes. And I will be the first to admit that the Coca-Colalogo and its consistency over the years are far more supreme than Pepsi.


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The chart, for comic and poignant effect, then leaves a 1 2 0-year gap between the

first and last logos. It makes for a great viral JPG, but not for telling the real story.

For the first ten to twenty years you could probably find a dozen different

executions of the Coca-Cola script as the logo was probably drawn over and over for different applications. It isnt until the 1930s and 1940s that a clear

interpretation of the logo appears and is used consistently. During the late 1950s

and early 1960s the script logo is placed within a shape, referred to as the fishtail

logo, which is as off-brand as anything that Coca-Cola has ever done.

The chart also fails to mention the introduction of the wave, a ubiquitous visual

today, that was first implemented in the 1960s when Lippincott Mercer was incharge of making the Coca-Cola identity more consistent. More than any Pepsi

blunder, the chart ignores the introduction of New Coke in 1985 with a new

formula marketing and set of logos that completely ignored the script logo

that left a bad taste in their consumers mouths. Around the same time, in

1986, Landor began rolling out an even more developed brand identity that

modified the wave among other subtle changes.

Missing from the chart in the Coca-Cola evolution is the penchant for Coca-Cola to

use the shape of its bottle as an icon, acting on and off as the logo or

complementary logo or subsidized logo of the main script logo, sometimes to a

confusing fault. Todays Coca-Cola logo is, of course, amazingly similar to what it

was 1 2 4 years ago but its not quite fair to idolize them for a flawless consistency

that they havent actually earned.

Once more, I will say that the Coca-Cola evolution is admirable and few

companies probably just GE can claim to have extended their identity

heritage across three centuries, but Coca-Cola isnt perfect and as much as I


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despise the new Pepsi identity which in no way am I trying to defend I

believe a fair comparison is in order.

So, here is the new chart. Its not ideal, since I didnt have a document as clean and

specific as one for Pepsi (scroll to last page of PDF) and I had to cobble the logos

from different sources. The reds are all over the place and some are in black and

white.


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CHAPTER-4

CONCLUSION

AND

RECOMMENDATION


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CONCLUSIONS

y Control of market share is the key issue. The situation is both Coke and

Pepsi are trying to gain market share in this beverage market, which is

valued at over $30 billion a year.

y Just how this is done in such a competitive market is the underlying issue.

The facts are that each company is coming up with new products and ideas

in order to increase their market share. The creativity and effectiveness of

each company's marketing strategy will ultimately determine the winner

with respect to sales, profits, and customer loyalty.

y Not only are these two companies constructing new ways to sell Coke and

Pepsi, but they are also thinking of ways in which to increase market share

in other beverage categories.

y Although the goal of both companies is exactly the same, the two

companies rely on somewhat different marketing strategies.

y Pepsi has always taken the lead in developing new products, but Coke soonlearned their lesson and started to do the same.

y Coke hired marketing executives with good track records. Coke also

implemented cross training of managers so it would be more difficult for

cliques to form within the company.

y On the other hand, Pepsi has always taken more risks, acted rapidly, and was

always developing new advertising ideas. Both companies have also reliedon finding new markets, especially in foreign countries.

y In the foreign markets, Coke has been more successful than Pepsi. For

example, in Eastern Europe, Pepsi has relied on a barter system that proved


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to fail. However, in certain countries that allow direct comparison, Pepsi

beat Coke.

y In foreign markets, both companies have followed the marketing concept by

offering products that meet consumer needs in order to gain market share.y For instance, in certain countries, consumers wanted a soft drink that was

low in sugar, yet did not have a diet taste or image. Pepsi responded by

developing Pepsi Max.

y These companies in trying to capture market share have relied on the

development of new products. In some cases the products have been

successful. However, at other times the new products have failed.y For Coke, changing their original formula and introducing it as New Coke

was a major failure. The new formula hurt Coke as consumers requested

Classic Cokes return.

y Pepsi has also had its share of failures. Some of their failures included:

Pepsi Light, Pepsi Free, Pepsi AM, and Crystal Pepsi.

While the market generally believes that Coke is on top of the industry, times arechanging for the worse for this company as Pepsi has started becoming more

favorable because:

y The significant increase in the investing market and their different strategies of

having the public on their sidey Pepsi updates itself after an interval of few months to show their stability when

it comes to investors which shows that they are generally financially

established.


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RECOMMENDATIONS

y

One solution to increasing market share is to carefully follow consumer wants in each country. The next step is to take fast action to develop a

product that meets the requirements for that particular region.

y Both companies cannot just sell one product; if they do they will notsucceed. They have to always be creating and updating their marketing plans

and products. The companies must be willing to accommodate their target

markets.y Gaining market share occurs when a company stays one-step ahead of the

competition by knowing what the consumer wants.

y My recommendation is to make sure the company is always doing marketresearch. This way they are able to get as much feedback as possible from

consumers.

y Next, analyze this data as fast as possible, and then develop the new product based upon this data.

y Once the product is developed, get it to the marketplace quickly. Time is avery critical factor.

In my opinion, with all of these factors taken into consideration any company

should give any company a good jump on market share.

Part2..Final Mpr

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