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A MARKET SURVEY REPORT

ON

A COMPATATIVE STUDY

OF THE IMPACT OF PROMOTIONAL STRATEGIES

ON THE SALES WITH SPECIAL REFERENCE TO

COCA-COLA &PEPSI

Submitted To:

COLLEGE OF MANAGEMENT AND COMPUTER

APPLICATION, MORADABAD

In Partial Fulfillment of the Requirement of the Degree ofBachelor of Business Administration (BBA)

SESSION: 2009-2012

Department of Management

TEERTHANKER MAHAVEER UNIVERSITYDELHI ROAD, MORADABAD

Project Guide:

Ms. Garima RawatProject Incharge:

Mr. Abhinav Srivastava(Course Co-ordinator, B.B.A.)

Submitted By:

Yasir Hasan KhanB.B.A. V SemesterRoll No. R0912011375

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CERTIFICATE

This is to certify that Ms/Mr................................................................. is

pursuing three year full time Bachelor of Business Administration (BBA)Course from Teerthanker Mahaveer University, Moradabad as regular student,

in session (2009-2012).

In compliance with the provision/guidelines of Teethanker Mahaveer

University, Moradabad, He/she has been assigner a market survey project. The

market survey report work has been genuinely carried out by the student for theduring specified by the university.

He/she has made sincere efforts in the completion of the market survey report.

Project Guide

YASIR HASAN KHAN

MS. GARIMA RAWAT

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STUDENT DECLARATION

I Yasir Hasan Khan hereby declare that the research work presented in this market

survey report entitled impact of promotional strategies on the SALES for the

fulfillment of the award of Bachelor of Business Administration from Teerthanker

Mahaveer University; Moradabad is based on my market survey work with special

reference to COCA-COLA &PEPSI. The market survey report embodies the result of

original work and studies carried out by me and the contents of the report do not form

the basis for the award of any other degree to me or to anybody else.

Yasir Hasan Khan

BBA 5th Sem

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ACKNOWLEDGEMENT

It gives me immense pleasure and privilege to acknowledge my deepest

sense of gratitude towards all those who helped me in the successful

execution of this market survey report.

I would like to thanks Chancellor Sir, Shri Suresh Jain, Group Vice

Chairman Mr. Manish Jain, for their able guidance. I also extend my

gratitude towards the A.D Mr. Vipin Jain, H.O.D. Dr. M.P. Singh and

my course co-ordinator Mr. Abhinav Srivastava who entrusted me for

the completion of this project. I am highly indebted to my project guide,

Ms. Garima Rawat whose constructive counseling and able guidance

helped me immensely in bringing out this project in the present form.

And lastly the entire faculty member and Mr. Sanjeev Singh (Librarian)

& the entire Lab staff for providing me this opportunity and expose me to

industrial culture.

The acknowledgement would be incomplete without thanking my family

and friend who were a big support throughout.

YASIR HASAN KHAN

BBA 5th SEM

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PREFACE

Gathering information and theoretical knowledge is a part of study. It become complete when

added with practical knowledge as the noted truth comes to sight. Hence one becomes more

efficient and effective when a flavor of practical out look is added to the bosky mind. As the

study has got wide relevance is formulating valid information about the organization, it helps

in getting a critical look in to the personnel practices of the organization. It gives a previous

idea about the job and working environment to the future decision- making how to perform by

assigned job successfully and tact fully.

As there is saying, practice makes a man perfect and the knowledge. This does not deal with

the practical application, is said to be unscientific and unsystematic. More over the branch of

management, which deals with the most critical and important factor of production, requires

not only theoretic background but also some practical experience to have some knowledge on

day-to-day problem solving.

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EXECUTIVE SUMMARY

The main purpose of this study was to examine the impact of promotion strategies

which include: sales promotion, advertising, sales force, public relations, direct mail,

telemarketing and the internet, on consumption of pepsi and coca-cola products. The

study sample included 200 residents from Rampur and Moradabad, selected using

purposive sampling together with convenience sampling and was stratified into

students, the employed, self-employed people/businessmen and the unemployed. The

study was based on Katz and Lazarsfeld's Multi-Step Communication Theories and

Rodgers Adoption Model. The study entailed a survey research design and the

instruments for data collection were mainly questionnaires. Analysis of data was done

using descriptive statistics and likert scale analysis.

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CONTENTS

1. Introduction

2. Objectives of the study

3. Company Profile

4. Literature Review

5. Hypothesis

6. Research Methodology

7. Data Analysis & Interpretation

8. Findings

9. Suggestions & Recommendations

10. Conclusion

11. Limitations

BibliographyAnnexure

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INTRODUCTION

In the modern urban culture consumption of soft drinks particularlyamong

younger generation has become very popular. Soft drinks in various

flavors and tastes are widely patronized by urbane population at various

occasions like dinner parties, marriages, social get together, birthday

celebration etc.

Children of all ages and groups are especially attracted by the mere

mention of the word soft drinks. With the growing popularity of soft

drinks, the technology of its production, preservation, transportation and

or marketing in the recent years has witnessed phenomenal changes. The

so-called competition for this product in the market is from different other

brands. Mass media, particularly the emergence of television, has

contribute to a large extent of the ever growing demand for soft drinks the

attractive jingles and sport make the large audience remember this product

at all times. It is expected that with the sort of mass advertising, reaching

almost the entire country and offering various varieties annual demand for

the product is expected to rise sharply in the times to come. In any

marketing situation, the behavioral / environmental variables relating to

consumers, competition and environment are constantly influx.

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The competitors in a given industry may be making many tactical

maneuvers in market all the time. They may introduce or initiate an

aggressive promotion campaign or announce a price reduction. The

marketing man of the firm has to meet all these maneuver and care of

competitive position of his firm and his brand in the market. The only

route open to him for achieving this is the manipulation of his marketing

tactics. In todays highly competitive market place, three players have

dominated the industry; The New York based Pepsi Company Inc. The

Atlanta based coca- cola and U.K. based Cadbury Schweppes. Through

the globe, these major players have been battling it out for a bigger chunk

of the ever growing soft drink market.

Now this battle has been evolved up to India too with the arrival of these

three giants. Soft drink industry is on amazing growth; ultimately these are

only one person who will determine their fortunes. The Indian consumer

the real War to quench his thirst has just begun.

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OBJECTIVES

OF

THE STUDY

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OBJECTIVES OF THE STUDY

This study program has got the following objectives:

To study the impact of promotional strategies on the sales of both the brands.

To study the various types of promotional strategies.

To study the preference of customer towards Coke & Pepsi.

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COMPANY

PROFILE

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COMPANY PROFILE -COCA-COLA

International company offered convenient snacks, foods and beverages.

Coca-cola entered India in 1989.

50 bottling plant, company owned -25 and franchisee owned- 25.

Coca-Cola currently offers nearly 400 brands in over 200

countries and serves 1.7 billion servings each day.

Interbrands Global Brand Scorecard for 2011 ranked

Coca-Cola the NO.1 Brand in the World and estimated its brand

value at $71.8 billion

Market capital = 156,568.5Mil US $

REVENUES = 43.00BN US $

EMPLOYEES = 146,200

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COMPANY OVERVIEW-PEPSICO

International company -offered convenient snacks, foods and

beverages.

Pepsi made first appearance in the world in 1890

World headquarter - New York

Asia's headquarter - Hong Kong

Indian headquarter - Gurgaon, Haryana.

PepsiCo entered India in 1989.

43 bottling plant, company owned -16 and franchisee owned- 27

Interbrands Global Brand Scorecard for 2011 ranked Pepsico the NO.22

Brand in the World and estimated its brand value at 14,590mil US $

Market capital = 107.19bn US $

REVENUES = $57,838mil US $

EMPLOYEES = 294,000

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PRODUCT OFFERED BY PEPSICO

Pepsi cola brands - carbonated drinks, water, coffee etc

Frito lays brands- snacks, potato & corn chips, salsa etc

Gatorade drinks - drinks for sports professionals

Tropicana brands - Juices

Quaker brands - cereals & oatmeal bars

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PRODUCT OFFERED BY PEPSICO

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PRODUCTS OFFERED BY COCA-COLA

The Rejuvenation division offers a range of drinks designed to improve how

people feel

physically and mentally.

Products include ready-to-drink coffees, teas and herbal beverages.

The Health & Nutrition division produces a range of products to promote

Health and well being. In the US, its products encompass Minute Maid

Premium 100%juices, and Minute Maid Coolers.

The Replenishment division offers a range of water products around the world.

The division also produces a range of energy drinks, such as PowerAde.

Elsewhere in the world, the company has created other products designed to

meet the needs of local consumers and communities. For example, in Chile, it

developed Bibo (Kapo) because mothers wanted a healthy, noncarbonated

drink for their children.

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PRODUCTS OFFERED BY COCA-COLA

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BRANDAMBASSADORS

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BRAND AMBASSADORS OF PEPSI:

AMITABH BACCHAN

DEEPIKA PADUKONE

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RANBIR KAPOOR

SACHIN TENDULKAR

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SHAHRUKH KHAN

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BRAND AMBASSADORS OF COCA-COLA:

AAMIR KHAN

AKSHAY KUMAR

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KALKI

IMRAN KHAN

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Aishwarya Rai

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LITERATURE

REVIEW

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LITERATURE REVIEW

Promotional strategy is the function of informing, persuading, and

influencing a consumer decision.

It is as important to nonprofit organizations as it is to a profit oriented

company like Coca cola and Pepsi

Some promotional strategies are aimed at developing primary demand,

the desire for a general product category. For example, the Wisconsin

Milk

Marketing Board promotes natural cheese through advertisements

without referring to any particular cheese maker. But most promotional

strategies are aimed at creating selective demand, the desire for a

particular product. Cheese"is an example.

The report covers the objectives of promotion, the components of the

promotional mixpersonal selling, advertising, sales promotion, and

public relations are discussed, and finally, the factors that influence

marketers' decisions in selecting a promotional mix are explained.

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Objectives of Promotional Strategy

Promotional strategy objectives vary among organizations. Some use

promotion to expand their markets, others to hold their current positions,

still others to present a corporate viewpoint on a public issue. Promotional

strategies can also be used to reach selected markets. Most sources identify

the specific promotional strategy as objectives or goals of providing

information, differentiating the product, increasing sales, the function of

informing, persuading, and influencing consumer decision.

Providing Information

In the early days of promotional campaigns, when there was often a short

supply of many items, most advertisements were designed to inform the

public of a product's availability.

Today, a major portion of advertising in the World is still informational. A

large section of the daily newspapers on Wednesdays and Thursdays

consists of advertising that tells shoppers which products are featured by

stores and at what price. Health insurance advertisements in Sunday

newspaper supplements emphasize information about rising hospital costs.

Industrial salespeople keep buyers aware of the latest technological

advances in a particular field.

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Differentiating the Product

Marketers often develop a promotional strategy to differentiate their goods

or services from those of competitors. To accomplish this, they attempt to

occupy a "position" in the market that appeals to their target customers.

Promotions that apply the concept of positioning communicate to

consumers meaningful distinctions about the attributes, price, quality, or

usage of a good or service. Positioning is often used for goods or services

that are not leaders in their field.

Advertising

Designed to Increase Sales Positioning

Promotional strategy used to differentiate a good or service from those of

competitors in the mind of a consumer

Increasing Sales

Increasing sales volume is the most common objective of a promotional

strategy. Some strategies concentrate on primary demand, others on selective demand.

Stabilizing Sales

Sales stabilization is another goal of promotional strategy. Sales contests

are often held during slack periods. Such contests offer prizes (such as

vacation trips, color televisions, and scholarships) to sales personnel who

meet certain goals.

Sales promotion materialscalendars, pens, and the likeare sometimes

distributed to stimulate sales during off-periods. Advertising is also often

used to stabilize sales.

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HYPOTHESIS

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ASSUMPTION

Promotional activities have positive impact on the sales of both the brands.

Pepsi has more effective promotional activities than Coca-cola

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RESEARCH

METHODOLOGY

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RESEARCH METHODOLOGY

Introduction of the problem:

To study the impact of promotional strategies on the sales of both the brands.

To study the various types of promotional strategies.

To study the preference of customer towards Coke & Pepsi.

Research design: Research design is simply the framework or plan for a study used guide in

collecting and analyzing data. For the study: for conducting that research I selected the

Descriptive research design

Sampling design:

I. Population:

Sampling unit: citizens

Section: citizens of Rampur and Moradabad

Time: 2 Weeks

II. Sampling unit: students, housewives ,working people,

III. Sample size:

The sample size of the report is 100 citizens of Rampur and Moradabad

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IV. Sampling method::

Probability sampling: It is based on the concept of random selection of a controlled

procedure that assures that each population element is gives a non-zero chance of

selection.

Data collection method:

(a) Primary data:

The primary data are those which are collected afresh and for the first time, and thus happened

to be original in character. There are several methods of collecting primary data particularly in

surveys. Important one is

1. Through questionnaires

For the study: Internet is used for collecting the data while conducting the

research.

Data sources- Primary, Secondary.

Data approaches- Questionnaire.

Research Area Rampur & Moradabad

Sampling unit- General crowd

Sample size- 100 only.

Sample procedure- Probability sampling.

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Contact method- Direct.

DATA ANALYSIS

AND

INTERPRETATIONS

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1. Are you aware of both the brands Coca-

Cola and Pepsi?

a) Yes b) No

YES 95

NO 5

95

5

Yes

No

Interpretation- 95 % people said they are aware

of both the brands but 5 % were not aware of both

brands.

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2. Which One do you like?

a) Coca-cola b) Pepsi

Pepsi 55

Coca-cola 45

Interpretation- 55% said they like Pepsi & 45% go

for Coca-cola.

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3.Are you the regular customer of

both brands?

a) Yes b) No

Yes 82

No 18

Interpretation-82% are regular customer of both

brands and 18 % dont consume both the brands.

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4. By which source, you came to know

about both brands?

a) News paper b) TV Advertisementc) By Outdoor Advertisement d) By Friends

News paper 10

TV Advertisement 60

By Outdoor Advertisement 15

By Friends 15

10

60

15

15

News Paper

TV Advertisement

By Outdoor Advertisement

By Friends

Interpretation-60% people said they came to

know about brands by TV advertisement, 15 %

through friends, 15 % by outdoor advertisement and

10 % through news paper

5.Which is the most effective

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promotional activity?

a)

Price Deals b) Quantity Deals

c) Coupons d) Sampling

Price Deals 50

Quantity Deals 30

Coupons 15

Sampling 5

Interpretation-50% people said price deal is more

effective promotional activity, 30%goes with

quantity deals,15%with coupons and 5%with

sampling.

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6.Is sale promotion campaign effect

the behaviour of consumer?

a) Yes b) No c) Cant say

Yes 70

No 25

Cant Say 05

Interpretation- 70% said promotion campaign

effect the behaviour of Customer,25%said no and

remaining 5 % said dont know.

7. How promotional campaign does

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affect your buying decision?

a)

Favourable b) Unfavourable

c) Dont know

Favourable 70

Unfavourable 20

Dont Know 10

Interpretation- 70% Say its favourable,20%saidunfavourable and and 10%said dont know

8. Change in the Preference on the

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basis of price reduction?

a. Yes b) NoYes 60

No 40

Interpretation-

60% People dont change their preference on the

basis of price reduction but40% changes

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9. Which Brand offer most innovative

and exciting offers?

a. Pepsi b) Coca-cola

Pepsi 60

Coca-Cola 40

Interpretation- 60% say Pepsi offer most innovativeand exciting offers and remaining 40% were with Coca-cola

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10. Most effective advertizing?

a) Pepsi b) Coca-Cola

Pepsi 50

Coca-Cola 50

Interpretation- 50% say Pepsi does most effectiveadvertizing and 50% goes with Coca-cola.

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FINDINGS

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FINDINGS

1- Youngsters prefer Pepsi over coke.

2- Advertisements play a major role in choosing of brand.

3- Brand Ambassadors have a great effect on people consuming cold drinks.

4- In terms of innovative and exciting offers Pepsi co leads coca-cola.

5- When the question of more effective advertisement was asked mixed reaction came

with 50-50 response for both coke and Pepsi.

6- Price plays an effective for choosing of product among Indian consumers.

7- Television came out to be most effective for ad campaigns as respondents of all age

groups watch TV.

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SUGGESTIONS

&

RECOMMENDATIONS

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SUGGESTIONS & RECOMMENDATIONS

Pepsi offers more exciting and innovative offers so coke should look

Price deals are the most effective promotional activity and both the

companies should pay attention towards this in order to increase their sales

Telivision advertisements are the major mode of promoting products so both the

companies should lay their emphesis on ptomoting through television advertisements

Both the companies should promote their products by active participation in

promotional campaigns like sponsoring collge fests,sponsoring public events like

marathons and various other social causes

Promotion campaign play an important role in

increasing the sales of product so companies should incure more budget for the same

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CONCLUSION

Nearly all the people said they are aware from both the brands Pepsi and Coca cola

and half liked pepsi while the other half likes coca-cola ,more than half of the people are

regular customers of both the brands. Majority of people came to know about the brands

through tv advertisements. Half of the people said that price deal is the most effective

promotional activity in comparison to Quantity deals, Coupons and Sampling .Most of

the people said that promotion campaign affect the behaviour of customer and their

buying decision.

Most of the people said that they dont change their preference on the basis of price

reduction and according to them pepsi offer most innovative and exciting offers in

comparison of coca-cola .Half of the people were with pepsi and half with coca-cola in

terms of most effective advertizing.

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LIMITATIONS

Following are the limitations of the study that I came across:

1. The survey was restricted to only Moradabad and rampur only.

2. The period for the research was not enough to conduct the study in depth.

3. The sample size was limited to only 100 citizens

4. Because of the busy schedule respondents may not have answered properly which may

not hold true in such cases they should have got lot of time to answer.

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BIBLIOGRAPHY

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BIBLIOGRAPHY

Books

Marketing Management- By Philip Kotler

Marketing Management- T.N Chabra

Research Methodology C.R Kothari

Magazines & News papers

Business Today ,June 2011

The Financial Express, March 2011

Indian Journal of Marketing ,October 2011

The Times of India

The Economic Times

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WEBLIOGRAPHY

https://www.pepsico.com

https://www.coca-cola.com

https://www.cola-wars.net

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ANNEXURE

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QUESTIONNAIRE

1. Are you aware of both the brands Coca-cola and Pepsi?

a. Yes( ) b. No( )

2. Which one do you like?

a. Coca-cola( ) b. Pepsi( )

3. Are you the regular customer of both brands?

a. Yes ( ) b. No( )

4. By which source, you come to know about both brands?

a. News Paper b. TV advertisements

c. By outdoor advertisement d. by friends

5. Which is the most effective promotional activities?

a. Price deals b. Quantity deal

c. Coupons d. Sampling

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6. Is sale promotion campaign effect the behavior of consumer?

a. Yes b. No c. Cant say

7. How promotional campaign does affects your buying decision?

a. Favorable b. Unfavorable c. Dont know

8. Change in the Preference on the basis of price reduction?

a. Yes b. No

9. Which Brand offer most innovative and exciting offers?

a. Coca-cola( ) b. Pepsi( )

10.Most effective advertizing?

a. Coca-cola( ) b. Pepsi( )

RESPONDENT PROFILE