EXECUTIVE SUMMARY

This project is an extensive research on the marketing strategies of the two Cola giants Pepsi and Coca Cola. It covers an extensive survey and depicts all graphs, fact and figures of two companies. It begins with the introduction of soft drink industry and introduction of these two companies of soft drink industry. It covers some of the major strategies adopted by Pepsi and Coca-Cola like their pricing policy, sales promotion and advertising policy, distribution policy etc. The project has been made interesting with the inclusion of the topics, which covers the 4Ps of marketing.The major players in the soft drink industry in India are Coke and Pepsi. Pepsi holds the major market share followed by Coke. They have a cut throat competition between themselves. Whatever strategy is followed by one company, it is copied by the other.Sample of to brands were selected on the basis of there uses and noticeciability.

One of the selected brands is NO1 brand in their respective product categories the other one brand is close competitor of the No 1 brands. Total sample of size of 200 respondents selected on the basic of convenience was surveyed which include consumers.Data was collected from secondary as well as primary sources. Structure questionnaire was use to collect primary data

INTRODUCTION:In the modern urban culture consumption of soft drinks particularly among 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 calibration 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. The competitors in a given industry may be making many tactical maneuvers in market all the time. The 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.

SOFT DRINK INDUSTRY: AN OVERVIEW

It all began in 1886, when a tree legged brass kettle in Hohn Styth pembertons backyard in Atlanta was brewing the first P of marketing legeent Unaware the pharmacist has given birth to a caramel colored syrup, which is now the chief ingredient of the worlds favorite drink. The syrup combined with carbonated the soft drink market. It is estimated that this drink is served more than one thousand million times in a day.Equally oblivious to the historic value of his actions was Frank Ix. Robinson, his partner and book keeper. Pemberton & Robinson laid the first foundation of this beverage when an average nine drinks per day to begin with, upping volumes as sales grew.In 1894, this beverage got into bottle, courtesy a candy merchant from Mississippi. By the 1950s Colas was a daily consumption item, stored in house hold fridges. Soon were born other non- cola variants of this product like orange & Lemon.Now, the soft drink industry has been dominated by three major player (1) The New York based Pepsi co. Inc.(2) The Atlanta based coca cola co. (3) The united Kingdom based Cadbury Schweppes. Though out the glove these major players have been battling it. Out for a bigger chunk of the ever-growing cold drink market. Now this battle has begun in India too. India is now the part of cold drink war. Gone are days of Ramesh Chauhan, Indias one time cola king and his bouts of pistol shooting. Expect now to hear the boon of cannons when the Coca Cola & Pepsi co. battles it out for, as the Jordon goes a bigger share of throat. By buying

Over local competition, the two American Cola giants have cleared up the arena and are packing all their power behind building the Indian franchisee of their globe girdling brands. The huge amount invested in fracture has never been seen before. Both players seen an enormous potential in his country where swigging a carbonated beverage is still considered a treat, virtually a luxury. Consequently, by world standards Indias per capita consumption of cold drinks as going by survey results is rock bottom, less than over Neighbors Pakistan & Bangladesh, where it is four times as much.Behind the hype, in an effort invisible to consumer Pepsi pumps in Rs 3000 crores (1994) to add muscle to its infrastructure in bottling and distribution. This is apart from money that companys franchised bottles spend in upgrading their plants all this has contributed to substantial gains in the market. In colas, Pepsi is already market leader and in certain cities like Banaras, Pepsi outlets are on one side & all the other colas put together on the other. While coke executive scruff at Pepsis claims as well as targets, industry observers are of the view that Pepsi has definitely stolen a march over its competitor coke.Apart from numbers, Pepsi has made qualitative gains. The foremost is its image. This image turnaround is no small achievements, considering that since it was established in 1989, taking the hardship route prior to liberalization and weighed down by export commitments.Now, at present as there are three major players coke, Pepsi and Cadbury and there is stiff competition between first two, both Pepsi and coke have started, sponsoring local events and staging frequent consumer promotion campaigns. As the mega event of this century has started, and the marketers are using this event world cup football, cricket events and many more other events.Like Pepsi, coke is picking up equity in its bottles to guarantee their financial support; one side coke is trying to increase its popularity through.Eat Food, enjoy Food. Drink only coca cola. Eat cricket, sleep cricket. Drink only coca cola. Eat movies, sleep movies. Drink only coca cola. On the other side of coin Pepsi has introduced AMITABH BACHHAN for capturing the lemon market through MIRINDA Lemon with zor ka jhatka dhere se lage.

But no doubt that UK based Cadbury is also recognizing its presence. So there is a real crush in the soft drink market. with launch of the carbonated organize drink Crush, few year ago in Banaras ., the first in a series of a launches , Cadbury Schweppes beverage India (CSBI) HAS PLANNED:- The world third largest soft drink marketers all over the country.CSBI o wholly owned subsidiary of the London based $ 6.52billion. Cadbury Schweppes is hoping that crush is going well and well not suffer the same fate as the Rs. 175 crore Cadbury Indias apple drink Apella. CSBI is now with orange (crush), and Schweppes soda in the market.

As orange drinks are the smallest of non-cola categories that is Rs. 1100 crore markets with 10% market share and cola heaving 50% is followed by Lemon segment with 25%. The success of soft drink industry depends upon 4 major factors viz. Availability Visibility Cooling Range

COCA COLA COMPANY PROFILE

Keeping in view of tapping the Indian soft drink market and also developing soft drinks as a drinking product among Indians. The Coca-Cola in India has setup an independent organizations which is H.C.C & B.C.C with a capital of 350 U.S.$ each by virtue of sellout decision of the passed managing director Sh. S. C. Aggarwal.

Hindustan Coca-Cola bottling (N-W) Pvt. Ltd. Najibabad took the complete possession of this plant, land, machinery, & intellectuals on February 14 1998 and since then H.C.C, looking after all its affairs under company owned bottling plant to establish integrated marketing system in the area.

CORE BRANDS:

Coca-Cola: Developed in a brass pot in 1886, coca-cola is the most recognized and admired trademark around the globe. Not to mention the best selling soft drink in the world. Sprite: In 1961, a citrus-flavored drink made its U.S debut, using Sprite Boy as inspiration for its name. This elf with silver hair and a big smile was used in 1940s advertising for Coca-Cola. Sprite is now the fastest growing major soft drink in U.S and the worlds most popular lemon-lime soft drink.

Fanta : The name fanta was first registered as a trademark in Germany in 1941 ,when it was used for a few year for a soft drink created from available materials and flavors . The name was then revived in 1955 in Naples, Italy, when it was used for the: fanta orange drink we know today. It is now the trademark name for a line of flavored drinks around the world. Diet coke: The extension of the coca-cola name began in 1982 with the introduction of diet coke (also called coca-cola light in some countries). Diet coke quickly becomes the number one selling low calorie soft drink in the world.

HISTORY in INDIA Coca-cola in India

Coca-Cola, the corporation nourishing the global community with the worlds largest selling soft drink concentrates since 1886, returned to India in 1993 after a 16 year hiatus, giving new thumbs up to the Indian soft drink market. In the same year, the Company took over ownership of the nations top soft-drink brand and bottling network. Its no wondering our brands assumed an iconic status in minds of worlds consumers.

A Healthy Growth to the Indian EconomyEver since, Coca-Cola India has made significant investments to build and continually consolidate its business in the country, including new production facilities, waste water treatment plants, distribution systems, and marketing channels.

Coca-Cola India is among the countrys top international investors, having invested more than US$ 1 billion in India in the first decade, and further pledged another US$100 million in 2003 for its operations. A Pure Commitment to the Indian EconomyThe Company has shaken up the Indian carbonated drinks market greatly, giving consumers the pleasure of world-class drinks to fill up their hydration, refreshment, and nutrition needs. It has also been instrumental in giving an exponential growth to the countrys job listings. Creating Enormous Job OpportunitiesWith virtually all the goods and services required to produce and market Coca-Cola being made in India, the business system of the Company directly employs approximately 6,000 people, and indirectly creates employment for more than 125,000 people in related

industries through its vast procurement, supply, and distribution system.

The Indian operations comprises of 50 bottling operations, 25 owned by the Company, with another 25 being owned by franchisees. That apart, a network of 21 contract packers manufactures a range of products for the Company.

On the distribution front, 10-tonne trucks open bay three-wheelers that can navigate the narrow alleyways of Indian cities constantly keep our brands available in every nook and corner of the countrys remotest areas.

These are only some of the facts that speak about our commitment to the growth of the Indian Economy

promise BY COCA-colaThe coca-cola company exists to benefits and refreshes every one it touches. The basic proposition of our business is simple, solid and timeless. When we bring refreshment, value, joy and fun to our stakeholders then we successfully nurture and protect our brand, particularly coca-cola. That is the key to fulfilling our ultimate obligation to provide consistently attractive to the owner so four business.

More then a billion times every day, thirsty people around the world reach for coca-cola products for refreshment. They deserve the highestQuality every time. Our promise to deliver that quality is the most important promise we make. and it involves a world-wide , yet distinctively local , network of bottling partner , supplier , distributor and retailers whose success is paramount to our own. Our investment in local communities in over 200 countries totals billions of dollars in jobs, facilities, marketing, the purchase of local good and services, and local business partnership. Always and every where , we pursue continuous innovation in the products we offer the processes we use to make them, the package we develop and the way we bring them to market .

BRANDS IN INDIA

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BRAND IN INDIAN ORIGIN

GOLD SPOT: this orange carbonate soft drink was introduced in the early 1950c, and acquired by the Coca-Cola company in 1993, its tangy taste has been popular with Indian teenagers

LIMCA: It is thirst-quenching beverage features a fresh and light lemon-lime taste and lighthearted attitude. The limca brand was introduced in 1971 and acquired by the coca-cola company in 1993.

MAAZA: Maaza, launched in 1984 and acquired by the coca-cola company in 1993, is a non carbonated mango soft drink with a rich, juice & natural mango taste. THUMPS UP: in 1993, the Coca-Cola company acquired this brand, which was originally introduced in 1977. Its strong and fizzy taste makes it unique carbonated Indian cola.

PEPSICO

PepsiCo is one the largest companies in the U.S. It figures amongst the largest 15 companies worldwide according to the number of employees hired. It has a U.S. Fortune rank of 50.The company profits for 1997 were $2.14 billion on revenues of $20.92 billion and Pepsi is bottled in nearly 190 countries. PepsiCo is a world leader in convenient snacks, foods and beverages with revenues of more than $43 billion and over 198,000 employees. Take a journey through our past and see the key milestones that define PepsiCo.

PepsiCo is a world leader in the food chain business. It consists of many companies amongst which the prominent once are Pepsi-Cola, Frito-Lay and Pepsi Food International. The group is presently into two of the most profitable and profitable and growing industries namely, beverages and snack foods. It has scores of big brands available in nearly 150 countries across the globe. The group has established for itself once of the strongest brands in various segments of its operations.

The beverages segment primarily markets its Pepsi, Diet Pepsi, Mountain Dew and other brands worldwide and 7-UP outside the U.S. markets. These are positioned in close competition with Coca-Cola Inc. of USA. A point which is worth a mention is that Coca-Cola gets 80% of its profits for International operations while the same figure for PepsiCo stands at 6%. The segment is also in the bottling plants and distribution facilities and also distributes the ready to drink tea products of Lipton in North America. In a joint venture with orient spray juice products PepsiCo also manufactures and distributes fruit juices.

The snack food division manufactures and distributes and markets chips and other snacks worldwide. The international operations of this segment extend to the markets of Mexico, the UK and Canada. Frito-Lay represents this segment of PepsiCo.

The restaurant segment earlier primarily consists of the operations of the worldwide Pizza Hut, Taco Bell and KFC chains. PFS. Pepsi companys restaurant distribution operation, supplies company owned and franchise restaurants in the U.S. The company ventured into restaurant business with Taco Bell, KFC, Pizza Hut ended last year when they were spanned off from the company. A packaged goods company comprised of Pepsi-Cola Company and Frito-Lay will continue to bear the PepsiCo name. The move should enhance both corporations ability to prosper with their own fully dedicated structure and management team.

PepsICo In India

PepsiCo gained entry to India in 1988 by creating a joint venture with the Punjab government-owned Punjab Agro Industrial Corporation (PAIC) and Voltas India Limited. This joint venture marketed and sold Lehar Pepsi until 1991, when the use of foreign brands was allowed; PepsiCo bought out its partners and ended the joint venture in 1994. Others claim that firstly Pepsi was banned from import in India, in 1970, for having refused to release the list of its ingredients and in 1993, the ban was lifted, with Pepsi arriving on the market shortly afterwards. These controversies are a reminder of "India's sometimes acrimonious relationship with huge multinational companies." Indeed, some argue that PepsiCo and The Coca-Cola Company have "been major targets in part because they are well-known foreign companies that draw plenty of attention." In 2003, the Centre for Science and Environment (CSE), a non-governmental organization in New Delhi, said aerated waters produced by soft drinks manufacturers in India, including multinational giants PepsiCo and The Coca-Cola Company, contained toxins, including lindane, DDT, malathion and chlorpyrifos pesticides that can contribute to cancer, a breakdown of the immune system and cause birth defects. Tested products included Coke, Pepsi, 7 Up, Miranda, Fanta, Thumps Up, Limca, and Sprite. CSE found that the Indian-produced Pepsi's soft drink products had 36 times the level of pesticide residues permitted under European Union regulations; Coca Cola's 30 times. CSE said it had tested the same products in the US and found no such residues. However, this was the European standard for water, not for other drinks. No law bans the presence of pesticides in drinks in India.The Coca-Cola Company and PepsiCo angrily denied allegations that their products manufactured in India contained toxin levels far above the norms permitted in the developed world. But an Indian parliamentary committee, in 2004, backed up CSE's findings and a government-appointed committee, is now trying to develop the world's first pesticides standards for soft drinks. Coke and PepsiCo opposed the move, arguing that lab tests aren't reliable enough to detect minute traces of pesticides in complex drinks.As of 2005, The Coca-Cola Company and PepsiCo together hold 95% market share of soft-drink sales in India. PepsiCo has also been accused by the Puthussery panchayat in the Palakkad district in Kerala, India, of practicing "water piracy" due to its role in exploitation of ground water resources resulting in scarcity of drinking water for the panchayat residents, who have been pressuring the government to close down the PepsiCo unit in the village.In 2006, the CSE again found that soda drinks, including both Pepsi and Coca-Cola, had high levels of pesticides in their drinks. Both PepsiCo and The Coca-Cola Company maintain that their drinks are safe for consumption and have published newspaper advertisements that say pesticide levels in their products are less than those in other foods such as tea, fruit and dairy products. In the Indian state of Kerala, sale and production of Pepsi-Cola, along with other soft drinks, was banned by the state government in 2006, but this was reversed by the Kerala High Court merely a month later. Five other Indian states have announced partial bans on the drinks in schools, colleges and hospitals

PEPSI CO INDIA: A FORTUNE 500 COMPANY IN INDIA

PepsiCo, which ranks among the worlds five largest food and beverage companies with 16 brands, and its partners have invested more than US$ 700 million in India - building businesses, which today provide direct or indirect employment to more than 60,000 people. Since Pepsis entry into the Indian market in 1989, several brands from its portfolio have become established category leaders. Brand Pepsi is now the 2nd biggest brand in the country. PepsiCos portfolio of beverage brands in India includes the flagship cola brand Pepsi; Diet Pepsi; two flavors of Mirinda Orange and Lemon; 7UP; Mountain Dew; packaged drinking water - Aquafina; variants of the fruit drink brand Slice; the 100 per cent fruit juice brand Tropicana in several variants and the worlds leading sports drink Gatorade.

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Pepsi - Yeh Hai Youngistan Meri JaanBrand HistoryPepsi is a hundred year old brand loved by over 200 million people worldwide. The largest single selling soft drink brand in India is the ubiquitous'socialiser'at every occasion. Youngistan loves it. 200 million people worldwide love it. But what has made Pepsi the single largest selling soft drink brand in India is actually a formula concocted a century ago in a far away continent. 1886, United States of America. Caleb Brad man, the man with a plan, got on to formulate a blockbuster digestive drink and decided to call it Brads drink. It was this doctors potion that was to become Pepsi Cola in 1898, and eventually, Pepsi in 1903. Pepsi has always played on the front foot and since its inception has come out with revolutionary concepts like Diet, 2L bottles, recyclable plastic cola bottles and the enviable My Can. Brand Advantage Pepsi has become a friend to the youth and has led many youth cultures. Youngsters over the generations have grown up with Pepsi and share an emotional connect with it, unlike any other cola brand. Be it parties, hangouts, or just another day at home, a day is never complete without the fizz of Pepsi! Pepsi, Cricket and Bollywood have been joined at the hip since the beginning. Shah Rukh Khan, Sachin Tendulkar, Saif Ali Khan, Amitabh Bachchan, Kareena Kapoor, Priyanka Chopra, Virender Sehwag, M. S. Dhoni, John Abraham, Ranbir Kapoor and Deepika Padukone are a few celebrities who will go any length for a chilled Pepsi. The Pepsi My Can is undoubtedly the most popular cola pack of all times. It is not just a pack but a style statement for todays youth.

the rivarly begins:

Coke Comes to IndiaCoca-Cola comes to India with fanfare in the fifties. For a number of days, The Hindustan Times and other newspapers of New Banaras carried full page advertisement showing a big boy in uniform with a soft-drink crown as the cap. There was no indication of the product. After a few days, Coke was introduced. It was an entirely new drink which fascinated people. It soon became the national drink. For the first time, a soft-drink was available from one corner of the country to another. The person who brought Coca-Cola to India was the father of late Sardar Charanjit Singh, Sardar Mohan Singh. A practical man Mohan Singh realized that to popularize Coca-Cola, and make it a best seller it was necessary to catch them young. So he focused on youngsters in the society. The company realized that to become a mass consumption product, one has to go to the village. They gave much importance to the distributive network. The company trucks supplied coke to even the remotest village.Few products appears to be more similar than soft drinks, yet the Cola wars that mark the competition between Coke and Pepsi show how even organizations with highly similar product can be differentiated by their business strategies. Then comes battles over the issue of bottle size standardization. Coke the arch rival tried to offering more Cola at a lower price. Pepsi which had some of its early investment tied up in 250ml bottles, went the fountain way. The General bottle size freed has settled at 300 ml. 100 ml more than the pre MNC standard. Fountain mix dispensers, carry home bottles, even 1.50 plastic bottle with caps good enough to keep them lying down and still preserve the fizz.

MARKETING STATEGIES OF COKE AND PEPSIa)PRODUCTCoke was launched in India in Agra, October 24, in '93', soon after its traditional all Indian launch of its Cola. At the sparking new bottling plants at Hathra, near Agra. Coke was back with a bang after its exit in 1977.Coke was planning to launch in next summer the orange drink, Fanta-with the clear lemon drink, sprite, following later in the year.

Coke already owns more brands than it will over need, since it has bought out Ramesh Chauhan. Coke just needs to juggle these brands around dextrously to meet its objectives, to ensure that Pepsi does not gain market share in t Today, Coke's product line includes, Coca-Cola, Thumps Up, Fanta, Gold Spot, Maaza, Citra, Sprite, Bisleri Club Soda and Diet Coke. PACKAGINGCoca-Cola India Limited (CCIL) has bottled its Cola drink in different sizes and different packaging i.e., 200 ml bottle, 300 ml. Bottle, 330 ml. Cans, 500 ml. Bottle fountain Pepsi, and bottles of 1 and 2 litre.PRODUCT POSITIONINGOne important thing must be noticed that Thumps Up is a strong brand in western and southernIndia, while Coca Cola is strong in Northern and Eastern India. With volumes of Thumps Up being low in the capital, there are likely chances of Coca Cola slashing the prices of Thumps Up to Rs. 5 and continue to sell Coca Cola at the same rate. Analysts feel that this strategy may help Coke since it has 2 Cola brands in comparison to Pepsi which has just one.Thumps Up accounts for 40% of Coca Cola company's turn over, followed by Coca Cola which has a 23% share and Limca which accounts for 17% of the turn over of the company. (Thumps up being the local drink, its share in the market is intact, forcing the company to service the brand, as it did last year Mr. Donald short CEO, Coca Cola India, said that, " we will be absolutely comfortable if Thumps Up is No. 1 brand for us in India in the year 2000. We will sell whatever consumers want us to". Coca Cola India has positioned Thumps up as a beverage associated with adventure because of its strong taste and also making it compete with Pepsi as even Pepsi is associated with adventure, youth.

b)PRICEThe price being fixed by industry, leaving very little role for the players to play in the setting of the price, in turn making it difficult for competitors to compete on the basis of price.The fixed cost structure in Carbonated Soft Drinks Industry, and the intense competition make it very difficult to change or alter the prices. The various costs incurred by the individual company's are almost unavoidable. These being the costs of concentrates, standard bottling operations, distributor and bottlers commissions, distribution expenses and the promotional and advertising expenditure (As far as Coke is concerned, it had to incur a little more than Pepsi as Pepsi paved its way to India in 1989 while Coke made a come back in 1993.)Currently a 300 ml. Coke bottle is available for Rs. 6 to8 The 330 can was initially available for Rs. 13 and now, since the price has gave up to Rs. 18 per can. The prices of 500 m, 1 litre. And 2ltr being Rs. 15 Rs. 23 and Rs. 40 respectively (according to the current survey).Dating back to 93', when Pepsi hiked the price of Pepsi - Cola from Rs. 5 to Rs. 6 per 250 ml. bottle in some parts of the country-including Agra. Coke penetrated the market with price of Rs. 5 for a 300 ml. bottle, making it cheaper by Rs. 1 and 50 ml. than Pepsi. Coke's strategy at that time being able to expand the availability of soft drinks even in rural India. Coke's priority being to first increase the number of drinks per drinker, and then the number of drinkers itself. Pepsi also tried this but was trapped by a series of competitive price increase and changes in bottle sizes by Parle. But the prices of soft drinks have shot up since Pepsi's arrival and the current prices are being mentioned as under.

Price listNameBottle SizeMRP (in Rs.)

Coke Per Bottle200 ml6

Coke300 ml10

Coke500 ml (Plastic / Glass)22

Coke 2 litre60

Diet Coke (Can)330 ml Can35

Coke (Can)330 ml Can38

However, the trends may have been in the early '90's, now the prices of Pepsi and Coke are the same making it difficult in future and present to compete on the basis of price.

c)PLACECoke may have gained an early advantage over Pepsi since it took over Parle in 1994. Hence, it had ready access to over 2, 00,000 retailer outlets and 60 bottlers. Coke was had a better distribution network, owing to the wide network of Parle drinks all over India. Coke has further expanded its distribution network. Coke and its product were available in over 2, 50,000 outlets (in contrast with Pepsi's 2, 00,000). Coke has a greater advantage in terms of geographical coverage.But Coke has had problems with its bottlers as the required profits for the bottlers have not been forthcoming. This is more so because Coke has hiked the price of its concentrate by Rs. 8 Further, Coke's operations in India are 100% Fobs. Now, it plans to convert then into COBOs. This is straining the relationship between the Coke and its bottlers. The company had decided to create a fund to reimburse performing bottlers for the extra costs incurred on account of the hike in prices of soft drink concentrates. Mr. Short also realized that India is a price sensitive market and the company would have to absorb in the increase in excise duty and said that in the long run Coke will have to slash prices for the benefit of the consumers and said that they were considering a cut in the prices of their fountain soft drinks.Coke and Pepsi have devised strategies to get rid of middlemen in the distribution network. However, 50% of the industry unfortunately depends on these

middlemen. As of now, around 100 agents are present in Bananas. Bottlers of the 2 multinationals have strongly felt the need to remove these middlemen from the distribution system, but very little success has been achieved in doing so.

D) PROMOTION It must be remembered that soft drinks purchases are an "impulse buy low involvement products" which makes promotion and advertising an important marketing tool. The 2 arch rivals have spent a lot on advertising and on promotional activities.To promote a brand and even to spend a lot on advertising, the company must be aware of the perceived quality of the brand, its brand power (if at all there is) since consumers make purchase decision based on their perceptions of value i.e., of quality relative to price.According to Paul Stobart, Advertising encourages customers to recognize the quality the company offers. Price promotions often produce short-term sales increases.Coca Cola has entered new markets and also developing market economics (like India) with much-needed jobs.Coke attributes its success to bottlers, the Coca Cola system itself, i.e., its executive committees, employees, BOD, company presidents but above all from the consumer.Coke's red color catches attention easily and also the Diet Coke which it introduced was taking the Cake, as Pepsi has not come out with this in India.Ever since Coke's entry in India in 1993, Coke made a come back (after quitting in 1977), in October 24 in Agra, the city was flooded by trucks, there wheelers, tricycle cards-all with huge red Coke-emblazoned umbrellas. Retailers were displaying their Coke bottles in distinctive racks, also with specially-designed iceboxes to keep Coke bottles cold. This was one big jolt to Pepsi.

STRATEGIES ADOPTEDBY COKE AND PEPSI

The Pepsi Process: Despite being a global brand, Pepsi has built its success on meeting the Indian consumers needs, particularly in terms of making the brand synchronize with localized events and traditions. Instead of harping on its global lineage, ergo, it tries to plug into ethnic festivals, use the vernacular indifferent part of the country, and blend into the local fabric. Pepsi is using both national campaigns-such as the Drink Pepsi, Get Stuff scheme, which offers large discounts on other products to Pepsi-buyers as well as local.

The Coke Copy: Instead of creating a bond with the customers through small but high-impact events, Coca-Cola chose to associate itself with national and international mega events like the World Cup Cricket, 1996, and world cup football 1998. But now coke is also entering into local actions. Coke is also trying to make their brand synchronize with localized events traditions and festivals. Coca-Cola new tag line in this advertisement is Real shopping, real refresher. In this way Coke is copy Pepsi.

EmpowermentThe Pepsi Process: Once of the strongest weapons in Pepsis armory is the flexibility it has empowered its people with. Every manager and salesperson has the authority to take whatever steps he, or she, feels will make consumers aware of the brand and increase its consumption. The Coke Copy: Flexibility is the weapon that Coca-Cola, fettered as it is by the need for approvals from Atlanta for almost everything. In the past, this has shown up in its stubborn insistence on junking the franchisee network it had acquired from Parle; in its dependence on its own feedback mechanism over that of its bottlers; and on its headquarters-led approach.

PriceThe Pepsi process: Pepsi has consistently wielded its pricing strategy as in invitation to sample, aiming to turn trial into addiction.It launched the 500 ml bottle in 1994 at Rs. 8 versus Thumps Ups Rs. 9, in April, 1996, its 1.5 liters bottle followed Coke into the marketplace at Rs. 30 Rs 5 less than Cokes .But it couldnt continue the lower price positioning for long.

The Coke Copy: Initially, coke carbon-copied the strategy by introducing its 330ml cans in January 1996, at an invitation price of Rs. 15 before raising it to Rs. 18. By this time, it had realized that the Coca-Cola brand did not hold enough attraction for customers to fork out a premium. The 200ml Coke, launched so far in parts of eastern, western, and northernIndia, is priced at Rs. 5, lowering the entry-barriers. Too really drive the market, as Coke wants to you must go down to Rs. 3.

PEPSI AND COKE MARKET SHARE IN INDIA

cola warsCoca-cola v/s Pepsi

Over a Century of Cola Slogans, Commercials, Blunders, and CoupsThere's little doubt that the most spirited and intense competition in the beverage world is between Coca-Cola and Pepsi. These two American companies long ago took their battle worldwide, and although there are other colas in the market, these giants occupy this high-stakes arena by themselves. The impact of Coke and Pepsi on popular culture is indisputable, and I have observed in my time managing this web site that America has not become jaded about the cola wars. The memorabilia, the jingles, the trivia - all still popular. So I am offering this page in an attempt to assuage a wee bit of the Coke and Pepsi thirst that is thriving on our planet. IT ALL STARTED . . . .Coca-Cola was invented and first marketed in 1886, followed by Pepsi in 1898. Coca-Cola was named after the coca leaves and kola nuts John Pemberton used to make it, and Pepsi after the beneficial effects its creator, Caleb Brad ham, claimed it had on dyspepsia. For many years, Coca-Cola had the cola market cornered. Pepsi was a distant, no threatening contender. But as the market got more and more lucrative, professional advertising became more and more important. These soda companies have been leading the way in advertising ever since.

ADVERTISING HISTORY & COMMERCIALSPepsi has definitely leaned towards the appeal of celebrities, popular music, and young people in television commercials, while Coke relies more heavily on images of happiness and togetherness, tradition, and nationalism, perpetually trying to cash in on its original lead. In a simplified sense, you could sum up the strategies as Coke: Old, Pepsi: New. In fact, as we will see, when Coca-Cola tried something new, it was disaster. The first magazine ad for Coca-Cola appeared in Munsey's in 1902. Advertisements began to appear on billboards, newspapers, and streetcars. Soon there were serving trays with images of people enjoying Coca-Cola, and glasses with the cola's name on them. At this time, Coca-Cola and Pepsi were served in drugstore soda fountains. In 1909, Pepsi used its first celebrity endorser, automobile race driver Barney Old-field, in newspaper ads. In 1921, Pepsi went bankrupt, but continued to appear on the scene, although not nearly so successfully as Coca-Cola. In 1931, Pepsi went bankrupt again, but the new owner, Roy Megargel, would hit upon an idea that would finally give Coca-Cola some competition. In 1934, he marketed Pepsi in a 12-ounce bottle for a nickel. At the time, Coca-Cola was sold in a 6-ounce bottle for ten cents. Voila! Profits for Pepsi. Pepsi racked up another first by airing the first radio jingle in 1939. It was so popular that it was played in jukeboxes and became a hit record Coca-Cola hit the airwaves in 1941. In 1946, inflation forced Pepsi to increase prices. And in 1950, Pepsi offered a larger 26-ounce bottle to court the young American housewife. In the 1960's, the cola ad wars moved to television. Coca-Cola employed a host of celebrity singers to promote the product, including Connie Francis , Tom Jones, The New Beats, Nancy Sinatra, and The Supremes. As we moved through the years, both colas

incorporated some of their best slogans ("Pepsi Generation" and "the Real Thing") into subsequent commercials. In the 1970s, market research showed that consumers preferred the taste of Pepsi over Coke. The Pepsi Challenge is still being conducted today. But Coke came up with what is arguably the best of all cola commercials, the 1971 I'd like to buy the World coke ad.

This landmark was recalled in Christmas versions in 1983 and 1984, and a 1990 Super Bowl ad, which was enough to make some Baby Boomers weep with nostalgia. In the 1980's, Pepsi lined up the celebrities, starting with late Michael Jackson, then Madonna, Michael J. Fox, Billy Crystal, Lionel Ritchie, Gloria Stefan, Joe Montana, and others. Coke signed on Michael Jordan, New Kids on the Block, Aretha Franklin, Elton John, and Paula Abdul. In 1985, responding to the pressure of the Pepsi Challenge taste tests, which Pepsi always won, Coca-Cola decided to change its formula. Bill Cosby was the pitchman. This move set off a shock wave across America. Consumers angrily demanded that the old formula be returned, and Coca-Cola responded three months later with Classic Coke. Eventually, New Coke quietly disappeared. Pepsi, meanwhile, had its own flop, Crystal Pepsi, which was supposed to catch the strange wave of the times when everything colorless was clean and desirable (Zima, bottled water). And then there was Pepsi Lite with the lemony flavor and one calorie, introduced in 1975. Remember that one? Apparently they didn't expect us to because later they gave us Pepsi One, using the same concept, but a completely different taste. And, extending the idea even further, we are now getting Pepsi Twist, a new product with a twist of lemon flavor.

In 1991, Ray Charles sang, "You got the right one baby, uh-huh!" Also in the 1990s, Cindy Crawford and the Spice Girls pitched Pepsi. And then Pepsi aired commercials featuring the aggravating little girl (Halide Eisenberg) with her troubling male voice. In the new century, both colas continue to battle it out on the television screen. And celebrities continue to be important promoters. Recently, Pepsi has had commercials by Bob Dole and Faith Hill, among others.

Pepsi v Coca-Cola war turns hot

The ongoing cola war between global rivals Pepsi and Coca-Cola has taken a weird twist in India with the former dragging the latter to court. The charge: Coca-Cola has snatched employees, bottlers, and agents, all of whom are bound to Pepsi by a contract. Pepsi has charged Coke with having entered into a conspiracy to disrupt its business operations by inducing key employees and associates to break existing contracts illegally. Pepsi has sought a permanent injunction and an ex parte order against coke, restraining it from taking away Pepsi's employees and business associates. Pepsi has also reserved the right to seek financial damages from Coke at a later date if necessary. Pepsi has claimed that a dozen middle-level managers and three territory managers broke their contracts with Pepsi to join Coke in recent months, while during the last year and half, seven managers quit Pepsi to join Coca-Cola. Justice C M Nair of the Delhi high court on April 17 issued notices and summons to Coca-Cola and 15 others for May 6. However, Justice Nayar refused to grant the ex parte injunction sought by Pepsi India to stop the alleged inducements by Coke in offering employment to Pepsi's employees while the suit was pending in court. On behalf of Pepsi, Ashok Desai and Arun Jaitley contended that Coca-Cola had been "rattled by the huge success of Pepsi in India entered into a conspiracy during the last six months to cause loss and damage to Pepsi's business interests by adopting unfair and illegal means."

It added that Coca-Cola had approached many key managers and had successfully lured a commercial manager of its bottling business Gaurav Duggal, and a manager in Surat Sailesh Joshi, besides others. Pepsi charged that while initially these approaches were sporadic, over the last six months it is clear that Coca-Cola has changed its strategy and has decided to consciously target and approach key employees of Pepsi at various locations in India. The company has alleged that in most cases, the employees have not been given time to adhere to the 90-day notice period and the one-year confidentiality agreement. The latter deal bars employees joining its rivals for at least a year. Desai claimed Coke's actions would directly harm the business interests of Pepsi, which had invested over $300 million in the country in establishing business infrastructure. In its defense, Coke is expected to seek relief in the Indian Constitution which states that there can be no restriction on the movement of labor. Besides, any effort by a company to restrict its employees from joining other companies might fall foul of the Monopolies and Restrictive Trade Practices Act as an unfair trade practice. Pepsi has cited the instance of Coke snapping up cricketer Javagal Srinath in spite of the latter signing a contract with Pepsi's sports consultant, 21st Century Media. However, media reports, quoting sources, said that Srinath's contract had been only in the verbal stage. Similarly, Pepsi has charged Coke with inducing the Board of Control for Cricket in India to give the sponsorship of the recently concluded Pepsi Triangular Cricket Series to Coke, as acknowledged in the BCCI submission before the Bombay high court, even while a contract was signed with Pepsi. Pepsi has listed the case of Coke trying to induce its music consultant DNA Networks Private Ltd, which organized the Yanni show, to snap its ties with Pepsi and join Coke.

Incidentally, in results announced for the first three months of the year, Pepsi has swept Coca-Cola aside. Pepsi has reported a growth of 27 per cent compared to Coke's 21 per cent during the same period. In the first three months of last year, Pepsi grew by 18 per cent only. Coca-Cola India chief executive Donald Short had announced that Coke would grow by at least 20 per cent for the whole of 1998. Coca-Cola, along with the Parle brands it acquired when it came into India -- Thums Up, Limca, and Gold Spot -- continue to dominate India with a 55 per cent market share to Pepsi's 43 per cent. But in the cola segment, Coke comes a poor third after Thumps Up and Pepsi. The current summer season is the most important for the cola giants, with consumption at its peak. BATTLE OF THE BEVERAGES:

PEPSI IS NOT AS PRICEYRegardless of which soda you like better though, Pepsi seems the better value than Coke right now. Coke is trading at a nearly 20 percent premium to Pepsi based on 2002 P/Es even though the two companies' earnings growth rates are nearly identical. (Pepsi's are actually a shade higher.) And when you look at revenues, the gap is even more dramatic. Coke is trading at 7 times estimated 2002 sales while Pepsi is trading at 3.5 times 2002 revenue estimates. Both companies are expected to post slight declines in sales this year and an increase of about 4 percent in 2003. Due to this disparity in valuation, Jeff Kanter, an analyst with Prudential Securities, says he has a "buy' rating on Pepsi and "hold" on Coke. Prudential does not do investment banking. To be sure, Coke is still the market share leader in soft drinks. One of the main reasons the stock has outperformed Pepsi this year was because it reported a better than expected gain in unit volume in the first quarter. And the company has taken steps to cement its carbonated beverage lead as well gain ground in the bottled water market. (Coke and Pepsi both have their own brands of water, Dasani and Aquafina, respectively.) On Tuesday, Coke announced that it was acquiring the Seagram's line of mixers, tonic, ginger ale and seltzer from Diageo and per nod Richard. And last month, Coke entered into an agreement with Group Danone to distribute Evian bottled water in North America.

Some pretzels with that soda?

But while Coke relies solely on beverages for growth, another factor in Pepsi's favor is its diversity. "What attracts me to Pepsi is I have more faith in their ability to grow earnings. Not only are they successful on the beverage side but they are successful with salty snack foods," says Crit Thomas, director of growth equity for National City Investment Management Co., the sub advisor for Armada Funds. As of March 31, Pepsi was the seventh-largest holding in the Armada Tax Managed Equity Fund and the tenth-largest holding in the Armada Equity Growth Fund. In fact, Pepsi's carbonated beverages are not even the biggest generator of sales and earnings for the company. Pepsi's Frito-Lay brand of snack foods, which include Fritos, Doritos and Rold Gold, accounted for 61.2 percent of revenue and 65.3 percent of operating profits in the first quarter. Pepsi's soft drink business made up 19 percent of sales and 23.2 percent of operating profit. Pepsi also owns Gatorade and Quaker Foods, having acquired Quaker Oats last year. One potential risk for both Pepsi and Coke is the economy. No, not if it goes back into a recession. If the economy continues to improve, the stocks could fall victim to what is known as sector rotation, the selling of defensive companies like food and beverages in order to buy more economically sensitive companies in the financial services and technology sectors. To that end, shares of Pepsi and Coke fell slightly on Wednesday during the Cisco-induced market rally.

Still, Thomas says signs that the dollar is starting to weaken compared to other currencies should prop up both stocks. That's because a weaker dollar helps boost the profits of international subsidiaries, since profits made in a foreign currency are converted back to dollars. The majority of Coke's sales are from its international operations, with just 38 percent of revenue coming from the U.S. last year. Pepsi is not as big globally but currency fluctuations are still a factor, as international sales accounted for 29 percent of revenue in 2001.

Coke and Pepsi in India: Coca-Cola controlled the Indian market until 1977, when the Janata Party beat the Congress Party of then Prime Minister Indira Gandhi. To punish Coca-Cola's principal bottler, a Congress Party stalwart and longtime Gandhi supporter, the Janata government demanded that Coca-Cola transfer its syrup formula to an Indian subsidiary. Coca-Cola balked and withdrew from the country. India, now left without both Coca-Cola and Pepsi, became a protected market. In the meantime, India's two largest soft-drink producers have gotten rich and lazy while controlling 80% of the Indian market. These domestic producers have little incentive to expand their plants or develop the country's potentially enormous market. Some analysts reason that the Indian market may be more lucrative than the Chinese market. India has 850 million potential customers, 150 million of whom comprise the middle class, with disposable income to spend on cars, VCRs, and computers. The Indian middle class is growing at 10% per year. To obtain the license for India, Pepsi had to export $5 of locally made products for every $1 of materials it 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. In the end, all parties involved seem to come out ahead: Pepsi gains access to a potentially enormous market; Indian bottlers will get to serve a market that is expanding rapidly because of competition; and the Indian consumer benefits from the competition from abroad and will pay lower prices. Even before the first bottle of Pepsi hit the shelves, local soft drink manufacturers increased the size of their bottles by 25% without raising costs.

PREFERENCE OF SOFT DRINKS IN A DAY

Once a day25%

Twice a day20%

Once a week5%

Other50%

Figure-1PREFERENCE TO THE BRAND

Pepsi40%

Coke60%

40%60%0%20%40%60%80%PepsiCokePepsiCokeFigure 2 TO GIVE THE PREFERENCES

More Popular10%

Packaging10%

Taste70%

Price10%

Figure 3

MARKETING STRAGGLES OF COMPANY EFFECTS THE SALES

Yes55%

No45%

55%45%0%10%20%30%40%50%60%YesNoYesNoFigure 4 FORM OF MARKETING STRATEGIES

Television Advertising45%

Newspaper Advertising5%

Outdoor Advertising20%

Sales Promotion30%

45%5%20%30%0%10%20%30%40%50%Television Adv. Newspaper AdvOutdoor AdvSales PromotionTelevision Adv. Newspaper AdvOutdoor AdvSales PromotionFigure 5 CHANGE BRAND ON THE BASIS OF PRICE REDUCTION

Yes51%

No49%

51%49%48%49%50%51%52%YesNoYesNoFigure 6MORE EFFECTIVE ADVERTISING

Pepsi Co.50%

Coke Co.50%

%%%50%50%%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%0%20%40%60%80%Pepsi Co.Coke Co.Pepsi Co.Coke Co.Figure 7 CREATIVE AND APPEALING ADVERTISING OF THE SOFT DRINK COMPANY

Pepsi Co.45%

Coke Co.45%

45%45%0%20%40%60%80%Pepsi Co.Coke Co.Pepsi Co.Coke Co.Figure 8 INNOVATIVE AND EXCITING OFFERS

Pepsi Co.55%

Coke Co.45%

55%45%0%10%20%30%40%50%60%Pepsi Co.Coke Co.Pepsi Co.Coke Co.Figure 9

Findings & analysisThe Indian soft drinks market is at 140 million cases per year. This is very low, even as compared to Pakistan and Bangladesh. All these factors together have contributed to a 20% growth in the soft drinks industry.. If this demand continues to grow at 20% grow at 20% annually, within 10 years the volumes could reach 1 billion cases. This kind of growth is the reason for the entry of the two giants of the soft drink industry of the world. Coca-Cola PepsiCoca-Cola and Pepsi together control 97% of the 4 entire Indian markets. The rest of the 3% is shared by companies like Cadbury-Schweppes and Campa-Cola. The total no. of case sold is 140 million of these 77 million cases of Cola drinks are sold and 63 million of non-cola drink. There is a rapid increase in the sale of cola soft drinks. Whereas in 1990, they accounted for a third of all soft drinks sold, now their share is well over half. Also cola sales are growing at a faster rate than non-colas. One of the reasons for this could be the aggressive marketing strategies for Cola drinks by Pepsi and Coca-Cola.The race to quench the great Indian thirst had deigned.

PRESENT COMPETITON BETWEEN COCA COLA AND PEPSI

If we see the present scenario its hard to tell which brand is winning the cola wars as Pepsi had extended its cola wars to other sectors like FRITO-LAYS and NIMBOOZ which is giving tough competition to coca cola which doesnt target on these sectors.

Second aspect which is to be given in consideration is that, both the companies are spending heavily on advertisement and more celebrities are roped in by both the companies to fight the competition.

Recently COLA-COLA beverages ACTORS IMRAN KHAN AND KALKI for a new ad ;to reply back to this a new ad by PEPSI beverages featuring ACTOR RANBIR KAPOOR and VINDHU DARA SINGH came up which is making waves at present.

Coke is served in MC DONALDS and there we wont find Pepsi products even the coffee served is of GEORGIA which is a coca-cola brand, same is the case of PIZZA HUT and KFC which is owned by PEPSI CO there only Pepsi products are served ,,,this had lead 2 clear war in restaurant segment as well

PEPSI is targeting young generation and their ad campaigns are a clear example of that, whereas coca-cola is targeting the family as a whole which has been its old formula from ages.

Presently coca-cola may be leading in beverages like coke, but its facing severe competition from Mirinda, Nimbooz and snack industry where PEPSI is ruling thanks to its KURKURE ad that has led to great sales for PEPSI CO.

Though in packed drinking water KINLEY (COCA-COLA BRAND) and ACQAFINA (PEPSI CO BRAND) both are treated equally by customers. Moreover BISLERI still rules in this segment.

FUTURE SCENERIO OF COCA COLA V/S PEPSI

The COLA WARS between coca-cola and Pepsi would further grow and in my view its never ending

Both the companies would try to become NO1 and there would AD WAR between the two which would prove to be beneficial for actors/actresses as they would earn more through advertisements.

Pepsi have started advertisements with female actresses DEEPIKA PADUKONE and COCA-COLA which had up till know only endorsed male actors for the 1st time endorsed KALKI of DEVD fame with IMRAN KHAN in its new ad.

With the coming up of COMMENWEALTH GAMES 2010 in NEW DELHI , both the brands would try to attract customers towards itself with heavy promotion and ad campaigns to build new customers and increase there share in market as well as strengthen their brand value and earn profits.

RECOMMENDATIONSSoft drinks are an impulse product. When a person is thirsty, he would first think of water or tea. Some even would prefer Nimbooz \The Indian population is the largest in the world today, there can be no other country in the world, which provides so much of an opportunity for the soft-drink manufacturers. The Indian soft drink market is at 140 million cases per year, this is very low. Thus the consumption of soft drink can go up.Sinc118+e the entry of Coca-Cola into the country the industry is growing at a rate of 20% annually. If this rate is maintained, then by the year 2005 the market of soft drink would be 1 billion cases annually.However Coca-Cola wants to accomplish this feat by them. To do this the industry has to take certain steps. All the companies are fighting to get a major share of this growing market. They should all try to increase the total market along with their individual shares.On the basis of all the field work and table work done, some suggestions can be made, which may help the company in increasing the total market as well as the sale of the companies. The various suggestions that can be made are as follows:- Soft drinks retail at prices between Rs. 6 and Rs. 10. These are expensive when measured against purchasing power.According to one study, it takes Indian 50 minutes of work to be able to buy a bottle in other countries, the norm is five minutes. Thus to increase the total market of soft drinks, manufactures should try and decrease the prices, so as to increase sales.Availability is a major factor, which makes the consumer buy a soft drink. Soft drinks should be made available more readily than present. There are only 300, 000 retailers stocking soft drinks in India. Thus retailing outlets should be increased. Also related to this point, is vending machines. In developed machines, vending machines are kept in all consumer areas, like super markets, schools, amusement parks, local markets, etc. These

Tempt a person into buying the soft drink. So if vending machines are put in strategic areas, it would definitely increase consumption of soft drinks.Soft drink cans which are very convenient, as the consumer can take them anywhere, unlike a bottle, are very expensive retailing from Rs. 15-Rs. 18. To increase sale of cans, this price should be brought down.Innovations increase sales of company. For e.g. fountain Pepsi increased sales of Pepsi Cans increased sales of Coca-Cola. Thus the companies hav constantly come out with innovative ideas.Example-300 ml plastic bottles, which the consumer can take with him, unlike the glass bottles, which he has to return. Plastic bottles can even be used again by households for various purposes.The companies should conduct studies to get to know about consumer habits. For e.g. Coke knows that Americans see 69 of its commercials every years , put 5.2 ice cubes in a glass and prefer cans to pop out of vending machines at a temperature of 35 degrees.If the companies know all this and more about Indian consumer behavior, it could tell them how to sell their drinks, so as to increase sales.It is seen In India, that people prefer having their drinks with or after food. Companies could have commercials which show people enjoying their drink with a good meal, so that consumers associate drinking soft drinks while having food.Companies should try to educate the consumer about the health related subject. For e.g.:-a) Limca is recommended to patients by doctors.b) Cola drinks are known to be very fattening ,But in fact cola drinks contain no calories from fat they contain calories from sugar which can be easily burned off. The soft drink cans and plastic bottles should mention the calories and other related information on the packing.Companies should try to build high brand equity. This provides a number of advantages to the company.a) The company enjoys reduced marketing costs because of high level of consumer brand awareness and loyalty.b) The company will have more trade leverage in bargaining with distributors and retailers since the customer expects them to carry the brand.c) The company can change a higher price than its competitors because the brand has higher perceived quality.d) The company can more easily launch brand extension.e) Above all, the brand offers the company some defense against fierce price competition.The companies should go in for diversificationOnce the brand is known, it is easier to sell more of its products. For e.g. Coca-Cola clothes have sold about $100 million worth of clothes and accessories. This would increase revenues of the company.The companies should not have competitor myopia. It is more often the latent company than the current competitor who busies the company. Pepsi and Coca-Cola are so busy fighting with each other, that they have left the non-cola sector open for Cadbury-Schweppes.

Advertising is a way building brand image. It does not promote quick selling. Thus companies should used advertising only for long advertising can be used for:a) Brand image buildingb) Reminder advertising: reminding people to buy these drinks.c) Reinforcement advertising-Telling people that they have made the right choice.Television advertising seems to make a impact on the consumers (based on questionnaire answers) so companies should concentrate more on television advertisements.Sales promotion tools create a stronger and quicker response. Thus sales promotion tools such as coupons, contests, premiums and the like should be used to dramatize product offers and to boost sales. Sales-promotion effects are usually short run and induce the people to purchase soft drinks, now.

Coca-Cola and Pepsi have taken up sponsoring of events on a major scale.All kinds or events, whether big (Wills Worked cup) or small (college contests) have either Pepsi or Coke banners of sponsorship. The effectiveness of this can be questioned. Whether these activities increase sales or not is a big huge question mark.PepsiCo and Coca Cola (I) Ltd. should reduce their massive spending on sponsoring events and try and channel this money into more productive activities, like innovative packaging etc.It is recommended that company should introduce more and more customer oriented schemes and contexts. For e.g. Pepsis new campaign Pepsi cool mal in which they are giving free gifts to their customers.The company should maintain a small group of missionary sales man whose functions should be to guide distributors and retailers, keep a constant watch over the prevailing situation to provide the continuous feedback to the company.It is also recommended that companies should launch soft drink in small pack 200 ml and 150 ml.Thus we see that there various steps which can be taken by the companies to increase their sales and to increase the total market share.

BIBLIOGRAPHY

Marketing Management- By Philip Kotler

WWW.PEPSICO.COM

WWW.COCA-COLA.COM

WWW.COLA-WARS.NET

ADVERTISING MANAGEMENT BY JETHWANEY AND JAIN

COLA WARS BY J.C.LOUIS

CELIBRITIES PLAYING PART IN TO THE SALES

PROMOTION OF THE PRODUCT:

CELIBRITIES OF PEPSI: AMITABH BACHHAN

SHAHRUKH KHAN

PRIETY ZINTA

SACHIN TENDULKAR

SAIF ALI KHAN

SOURAV GANGULY

RAHUL DRAVID

MOHD. KAIF

ZAHEER KHAN

HARBHAJAN SINGH

YUVRAJ SINGH

RANBIR KAPOOR VINDHU DARA SUNGJ

DEEPIKA PADUKONE

CELIBRITIES OF COKE: SALMAN KHAN

AISHWARYA RAI

AAMIR KHAN

VIVEK OBEROI

BIPASHA BASU

AKSHAY KUMAR IMRAN KHAN

KALKI