SUBMITTED BY:PANKAJ TIWARIJAIPURIYA INSTITUTE OF MANAGEMENT LUCKNOW
A PROJECT ON PRODUCT AVAILABILITY AND
MARKET RESEARCH
PREFACE
There is a famous saying “The theory without practical is lame and practical without
theory is blind.”
This modern era is era of consumers. Consumers satisfy themselves according
to their needs and desires, so they choose that commodity from where they extract
maximum satisfaction.
It has been identified that in the beginning of 21st century the market was
observed a drastic
change. The
successful brand
presents itself in
such a way that
buyers buy them in
special values which
match their needs.
Marketing is an
important part of any
business and
advertisement is the
most important part
of marketing.
Summer training is
an integral part of the
PGDM and student of Management have to undergo training session in a business
organization for 6 weeks to gain some practical knowledge in their specialization and to
gain some working experience.
Our institution has come forward with the opportunity to bridge the gap by
imparting modern scientific management principle underlying the concept of the future
prospective managers.
To the emphasis on practical aspect of management education the faculty of
Jaipuria Institute of Management,Lucknow has with a modern system of practical
training of repute and following management technique to the student as integral part of
PGDM. in according with the above obligation under going project in “Pepsico India Pvt.
Ltd. The title of my project is “Research on Product Availabilty & Market Research”
of pepsico’s beverages product in lucknow.
Certainly this analysis explores my abilities and strength to its fullest extant for
the achievement of organization as well as my personal goal.
(Pankaj Tiwari)
ACKNOWLEDGEMENT-
I PANKAJ TIWARI is highly indebted to Pepsico’s management for their continuous guidance, constant supervision as well as for providing necessary information regarding the project and also for supporting in completion of the project.My thanks and appreciation also goes to my colleagues in developing the project and willingly taking part in the completion of the project.
Special thanks to Mr Vivek Sur(GM), Mr Viveka Patel(AGC), Ms Poonam Kumari, Mr Rajiv Paul and all our CE’S(Mr Shavaid, Mr Mohit, Mr Harshendra, Mr Mukesh)for their continuous support and guidance.
CONTENTS
Preface
Acknowledgement
Title
Chapter 1. Research Methodology
Chapter 2. Objective of study
Chapter 3. Introduction to Project
Chapter 4. Introduction to the Soft Drink Market
Chapter 5. Introduction to the Soft Drink Market in India
Chapter 6. Company Profile
Chapter 7. Comparative Analysis of Pepsi & Coke
Chapter 8. SWOT Analysis
Chapter 9. Five Force Analysis
Chapter 10. Area Wise Index Analysis
Questionnaire
1. Research Methodology
Problem statement / Objective of the research
To Study the concept of distribution channel and logistics in the soft drink industry
and to study the flow of soft-drink bottles in the market and compare it with the main
competitor in the industry.
Major objectives
To study the satisfaction level of retailers.
In depth study of the distribution channel of Pepsi and coke
Critically compare the Supply chain management of the both company.
Find out the limitation and strength of both companies.
Research design
The research design that will be use is descriptive research
Involves gathering data that describe events and then organizes, tabulates,
depicts, and describe the data
Uses description as a tool to organize data into patterns that emerge during
analysis
Often uses visual aids such as graphs and charts to aid the reader.
Description research takes a “what is” approach
Refers to the nature of the research question
The design of the research
The way that data will be analyzed for the topic that will be researched
There are three methods of data collection under this method. They are:
Survey
Interviews
Observations
Sampling plan
Target population: Retailers who stock coke and pepsi mainly panwala’s n
small retailers
Sampling size: 307
Sampling technique: convenience sampling
Sample Frame: - All members in the retailing channel and who influence
the channel.
Sample Unit: - Any retailer and dealer who stock pepsi and coke.
Sampling Method :- Non probability convenience sampling
Data collection sources
Primary data
Primary data would be collected through the structured questionnaire consisting mainly
open ended questions
Secondary data
Secondary data would be collected from the internet, journals, and reference books.
Marketing Research
Scope of the study
ANALYSIS OF DATA
All the open-ended questions will be analysed by adding up the responses against each
alternative and answers from the various respondents.
Transcripts will result in the finding to explore the changes that are likely to impact the
unique aspects of beverage industry, with present scenario in India and in world. Our
findings will show the current trends in beverage industry, various problems faced by
the industry according to various respondents.
Expected contribution of the study
The analysis made as a part of this study may contribute in a way analysis of strength
and weakness of the sector as whole may be taken into consideration and various firms
together may make efforts to overcome those limitations and as a result not only the
beverage manufacturing firms would be benefited but others who uses the services of
these firms would also be benefited.
Beneficiaries of the study
The outcomes analysed from this study would be beneficial to various sections such as:
- Beverage industry
This study would definitely benefit the soft drink firms in a way that services
provided by various firms would be compared and also the five force model
analysis of this sector reveal the potential threats to the existing players.
- Corporate
The benefits to the corporate would be that they would be well versed with
detailed information about various services provided by different firms so that
it would easier for them to select a particular soft drink firm to assist them in
various logistic problems.
- Researchers
The major beneficiaries from the project would be the researchers themselves
as this study would enhance their knowledge about the topic. They get an
insight of the present scenario of this industry as this is the emerging industry
in the beverage sector of the economy. Detail knowledge of various services
provided by the soft drink firm will help researchers and others to pursue
career in this industry.
Problems In Marketing research
Non Response of the Retailer
Understanding of the questionnaire of the retailer
Giving any answer without understanding the question or without thinking.
STATISTICAL TOOLS
Representation of statistical data by diagram, graphs, charts, or pictures is more
effective then tabular representation being easily intelligible to layman. Indeed diagrams
are most essential whenever it is required to convey any statistical information to the
generic public.
The more important types of diagram which is use in statistical work are:-
BAR DIAGRAM
Mode of diagrammatic representation of data is the bar diagram. In this method the bar
of equal width are taken for the different items of the series. The lengths of the bar
represent value of the variables concerned.
x
CH: 2
Objective of the Study
2. Objective of the Study
Since last few years, soft drink market is India at the end of the 2000-2010 decade. So
both the soft drink major viz. Coca Cola and Pepsi has been emphasizing of placing
their brand at as many outlets as possible so that could cope up with the competition
spreading at a growth rate of 8-10%, it has forecasted that it would become Rs.9000
Crore market in India.
The main object of this project is to comprehensively analyze the distribution of
pepsico and its strength in market against its rival Coca-Cola and also to be
aware like the shopkeeper about the sale and display of the Pepsicos’s brand like
Pepsi, Dew etc.
This was done in two ways:-
a) Comprehensive market analysis was done by visiting various shops through
out Lucknow.
b) To ask the shop keeper about the promotions and schemes given to them to
them in order to sell and promote their products.
CH: 3
INTRODUCTION TO THE PROJECT
3. Introduction to the Project
There is a huge fight between the two soft drinks giant Coca-Cola (Coke) and PepsiCo
(Pepsi) to grab a large part of the Indian markets. The main reason, well the growing
Indian middle class and the huge disposable income they have and also the increasing
consumption of soft drinks by Indians.
Pepsi and Coke both have brands attacking each other if Coke introduces one brand
then Pepsi will bring another brand to fight it and vice a versa. Though Coke is this huge
giant and Pepsi might be just a fly in front of it but the fly troubles and is much capable
of fighting back and also winning.
The main area where they can capture each others market is in the network of
distribution channels they use with restaurant chains, pan walas, hotels and eateries to
compete with each other. It is to these sellers where these two giants are vying for in
order to capture a larger market share and trounce the other and that is why the project
on the satisfaction of these members to see who is winning the competition.
According to industry experts, the market for carbonated drinks in India is worth US$ 1.5
billion while the juice and juice-based drinks market accounts for US$ 0.25 billion.
Growing at a rate of 25 per cent, the fruit-drinks category is one of the fastest growing in
the beverages market. Sports and energy drinks, which currently have a low penetration
in the Indian market, have sufficient potential to grow.
The market for alcoholic beverages has been growing consistently. 'The Future of
Wine', a report on the state of the wine industry over 50 years, suggests that the market
for wine in India was growing at over 25 per cent per year.
Major investments
Private investment has been one of the key drivers for growth of the Indian food
industry. The 'India Food Report 2008', reveals that the total amount of investments in
the food processing sector in the pipeline for the next three years is about US$ 23
billion.
The government has received around 40 expressions of interest (EoI) for the
setting up of 10 MFPs with an investment of US$ 514.37 million.
Reliance Industries Ltd has invested US$ 1.25 billion in a dairy project.
Focusing on India as a rapidly growing market, US soft drinks giant PepsiCo
would pump in an estimated US$ 152.30 million to set up four new food and
beverages projects by 2012.
Geneva-based food service chain Global Franchise Architects (GFA) aims to
open 250 stores around the world by March 2010, of which 100 will be in India.
Today India is one of the most potential markets with the population of around 1000
million people. There is a growth of 30% in the soft drink industry. These factors are the
reason for the entry of two giants in the soft drink industry in the world to enter in the
Indian market. The cola giant’s coke and Pepsi, together control almost 96% of entire
Indian market while other companies has only share 4%.
In a long span, a culture transforms itself over and over. The map is remade attitude
change for better or worse. Processes are invented, hailed as revolutionary and
discarded obsolete. So it was one hundred year was a very much different world from
what we have today, but at least one sense, not very different at call. Many reasons
have been advanced to explain the last century. With over 100 yrs. Of interrupted
growth despite war, economic depression and other disturbances there be something
that sets soft drink apart from the consumer culture.
CH: 4
INTRODUCTIONS TO THE SOFT DRINKS MARKET
4. Introduction to the Soft Drinks Market
The main production of soft drink was stored in 1830’s & since then from those
experimental beginning there was an evolution until in 1781, when the worlds first cola
flavoured beverage was introduced. These drinks were called soft drinks, only to
separate them from hard alcoholic drinks. This drinks do not contains alcohol & broadly
specifying this beverages, includes a variety of regulated carbonated soft drinks, diet &
caffeine free drinks, bottled water juices, juice drinks, sport drinks & even ready to drink
tea/coffee packs. So we can say that soft drinks mean carbonated drinks. Today, soft
drink is more favourite refreshment drink than tea, coffee, juice etc. It is said that where
there is a consumer, there is a producer & this result into completion. Bigger the player,
the harder it plays. In such situation broad identity is very strong. It takes long time to
make broad famous. Coca – Cola has its beginning in 1981 & since then has been one
of the three most dominate players in this soft drink industry.
The name “soft drink” was given by Americans as against hard drink, which is mainly
alcoholic. So in general terms non-alcoholic drinks are considers as soft drink. Soft drink
consists of flavour base, sweetener and carbonated water.
The major participants involved in the production and distribution of soft drink are
concentrate and syrup producer’s bottlers and retail channel concentrate-producers
manufactures basis of soft drink flavour and send them to bottlers. Bottlers purchase the
concentrate and add carbonated water and sometime sweeter and bottle or can the soft
drink. This soft drink delivered to the customer accounts retail channels that sales or
serve the product directly to the customers.
In USA soft drink had existed since the early 1800’s where many US druggists had
concentrate blend of fruit syrups and carbonated soda water that they sold them at their
soda fountains.
4.1 History of Soft Drinks
1798 The term "soda water" first coined.
1810 First U.S. patent issued for the manufacture of imitation mineral waters.
1819 The "soda fountain" patented by Samuel Fahnestock.
1835 The first bottled soda water in the U.S.
1850 A manual hand & foot operated filling & corking device, first used for bottling soda water.
1851 Ginger ale created in Ireland.
1861 The term "pop" first coined.
1874 The first ice-cream soda sold.
1876 Root beer mass produced for public sale.
1881 The first cola-flavored beverage introduced.
1885 Charles Aderton invented "Dr Pepper" in Waco, Texas.
1886 Dr. John S. Pemberton invented "Coca-Cola" in Atlanta, Georgia.
1892 William Painter invented the crown bottle cap.
1898 "Pepsi-Cola" is invented by Caleb Bradham.
1899 The first patent issued for a glass blowing machine, used to produce glass bottles.
1913 Gas motored trucks replaced horse drawn carriages as delivery vehicles.
1919 The American Bottlers of Carbonated Beverages formed.
1920 The U.S. Census reported that more than 5,000 bottlers now exist. Early 1920's the first automatic vending machines dispensed sodas into cups.
1923 Six-pack soft drink cartons called "Hom-Paks" created.
1929 The Howdy Company debuted with its new drink "Bib-Label Lithiated Lemon-Lime Sodas" later called "7 up" Invented by Charles Leiper Grigg.
1934 Applied colour labels first used on soft drink bottles, the colouring was baked on the face of the bottle.
1952 The first diet soft drink sold called the "No-Cal Beverage" a ginger ale sold by Kirsch.
1955 Coke enters for the first time into Indian markets
1957 The first aluminium cans used.
1959 The first diet cola sold.
1962 The pull-ring tab first marketed by the Pittsburgh Brewing Company of Pittsburgh, PA. The pull-ring tab was invented by Alcoa.
1963 The Schlitz Brewing Company introduced the "Pop Top" beer can to the nation in March, invented by Ermal Fraze of Kettering, Ohio.
1965 Soft drinks in cans dispensed from vending machines.
1965 The reseal able top invented.
1966 The American Bottlers of Carbonated Beverages renamed The National Soft Drink Association.
1970 Plastic bottles are used for soft drinks.
1973 The PET (Polyethylene Terephthalate) bottle created.
1974 The stay-on tab invented Introduced by the Falls City Brewing Company of Louisville, KY.
1977 Coke leaves India in order to protect its secret about the ingredients used in its soft drink
1979 Mello Yellow soft drink is introduced by the Coca Cola Company as competition against Mountain Dew.
1981 The "talking" vending machine invented.
1989 Pepsi Enters into India
1993 Coca Cola re-enters into India after the easing of economic norms
CH: 5
Introduction to the Soft Drink Market in India
5. Introduction to the Soft Drink Market in India
Although the beverage industry has been in existence for quite some time now, yet it is
still at an infant stage considering its size and place in the market. India stands at third
number in the consumption of beverage, behind United States and China. It accounts
for almost 10 per cent of global beverage consumption. Today, it is being looked as a
country that offers the greatest potential, even more so than China. This year, the
beverage industry in India is
being estimated to grow at 17% at Compounded Annual Growth Rate (CAGR).
Non-alcoholic Drinks Company actually sees India as a potential market because of the
kind of summer that India sees. The Coca-Cola Co reported its profit climbed 43 per
cent in the second quarter to two billion dollar, getting a boost from double-digit unit
case volume growth. The Indian CSD (carbonated soft drinks) market stands at 1.2
billion dollar and the fruit-based beverages and bottled water at 600 million dollar and
300 million dollar, respectively.
The wine industry in India is one of the most sought after market at present and all eyes
are on it. The budget announced by the finance minister is not being seen as very
advantageous to the wine industry as it did not announce any significant or major
benefits all round for it. It was expected to make wine sector a part of the food
processing industry, which would lead to uniformity in the state-wise tax structures. The
wine industry in India needs investment to grow to its rightful size of about 30 million
cases and it is possible only with lower production and marketing costs, taxes and
increased competition.
As far as the beer industry is concerned, age-old excise policy on liquor and multiform
regulations are hitting the beer industry. The Punjab Excise Policy of 1995, which
inadvertently discourages breweries, while encouraging distilleries, has put the brewers
in the country in a total mess. The beer industry is clearly at a disadvantage. Repeated
pleas have failed to bang the government’s deaf ear. Apart from this, the government
needs to make a uniform age limit to consume alcohol. It’s different in different states.
While an 18-year old guy can consume alcohol in Goa, you need to be at least 21 to do
the same in Mumbai. In Punjab, it’s even higher where it is kept at 25 years. The
National law is 21 years. The budget was expected to cut down the taxes on beer that is
more than most of the countries in the world. While the average global taxes on price of
the beer are 33.6 per cent, in India its about 49 per cent and therefore, affordability of
beer in the country is lowest compared to world standards.
However, the impact on non-alcoholic industry has been different. For e.g., packaged
coconut water will be cheaper by rupees three for 200ml as the retail prices have been
reduced from Rs 15 to Rs 12, thanks to the abolition of a 16 per cent excise duty. The
finance minister has also totally withdrawn the 16 per cent excise duty on tea and coffee
mixes and puffed rice. India (1002 Mn kgs), China (990 Mn kgs), Sri Lanka (318.7 Mn
kgs) and Kenya (286.0 Mn kgs) accounts for 80 percent of the world’s tea production. In
May, tea production in India rose to 71,374 tonnes from 70,267 tonnes a year before.
However, output has declined to 215.84 million kg till May this year from 240.24 million
kg last year.
The budget has also made dairy majors like Amul, Mother Dairy and Nestle happy
because the customs duty on bactofuges, that separates bacteria from milk, and
increases the Punjab Excise Policy of 1995 shelf life of milk, has been abolished. On a
bactofuge that costs between Rs 1.5 two crore, the companies will benefit rupees eight
to Rs 10 lakh a piece.
More and more companies are entering and creating niche for themselves in the Indian
budget industry, the latest being the fast moving consumer goods (FMCG) company
‘Dabur’. It is coming up with a new fruit flavored beverage called ‘Real Burst’.
Indian soft drinks story is old since the time of Raja’s Maharaja’ as they enjoyed several
soft drink like lassie, jaljeera, sharbat and tea etc. Now the Indian people have changed
their consumption pattern into soft drinks. According to Pepsi philosophy, it’s the
madness that encourages executive to think, to conjure up those creative tactics to
knock the fizz out. The warriors are face to face once again here in India with different
strategies and tactics to attack the rival. Coca cola is focusing upon the joint ventures
with the existing bottlers to enhance its control on manufacturing in marketing of its
products range and attain the equality standards of its class. Countering it Pepsi has
taken the battle in its own hands by floating as investment of $95 billion to set Pepsi Co.
India holdings as a subsidiary for company owned bottling operation (COBO). Both the
companies are following different path to reach the same destiny i.e. fetch the bigger
portion of aerated soft drink market in India.
Serving annually against the world average of 80 bottles a month. Therefore, they are
putting in their best effort to woe the Indian consumer who has tea, coffee etc. that is
why water tea, coffee and nimbu pani are considered as the competitor of soft drinks.
Cola is well set with its 53 bottling sites throughout the country giving it an edge, over
competition by processing a well built and distribution set up. On the other hand Pepsi
with 2 more years in India has been able to set an image of winner this time in India and
get the pulse of Indian soft drink market. The soft drink giants are leaving no stone
unturned and her for the long-terms.
Coca Cola has been penetrating the market through its wide product range with a
determination to change consumption pattern of soft drink in India. Firstly, they
upgraded the whole industry by introducing 300 ml bottles, which in turn had given the
industry a booming growth of 20% as compared to the earlier 5 % they want to develop
a Coca culture and are working on a strategy of offer soft drink in every possible
package. In Coca Cola camp, the idea of competition has not come from Pepsi, but
from the other beverages such as Tea, Coffee, Nimbu Pani and Water etc.
Pepsi is quite aggressive in its approach to Indian consumer. They are desperately
working on the strategy to work for 1.5 hour to buy a bottle of soft drink in comparison to
the international norms of 5 hour, a major hurdle to cross over for both the athletes for
getting No. 1 position.
India is one of the lowest soft drink consuming countries in the world. According to per
capita in India is 5 bottles per year, while highest consumption in USA of 800 bottles per
year. Lower, Lower middle & upper middle class consume 91% of soft drink market.
The consumption diagram graph of soft drink has never, decrease. If once, it has
increased. It is increasing at 24 – 25% per year. Even in India the market is constantly
growing in 1993, the people of India consume only 0.7 lt/head, while in 1995 it
increased from 0.7 to 0.93 lt/head, in 1997 it was 1.14 lt/head & in 2001 it was 1.62
lt/head.
The Company Profile of Pepsi
CEO PepsiCo
INDRA NOOYI
Chairman of the board and Chief Executive officer
ABOUT THE PEPSICO CEO
Nooyi joined PepsiCo in 1994 and was named president and CFO in 2001. Nooyi has
directed the company's global strategy for more than a decade and led PepsiCo's
restructuring, including the 1997 divestiture of its restaurants into Tricon, now known as
Yum Brands. Nooyi also took the lead in the acquisition of Tropicana in 1998, and
merger with Quaker Oats Company, which also brought Gatorade to PepsiCo. In 2007
she became the fifth CEO in PepsiCo's 44-year history.
Business officials rave at her ability to drive deep and hard while maintaining a sense of
heart and fun. According to Business Week, since she started as CFO in 2000[2], the
company's annual revenues have risen 72%, while net profit more than doubled, to $5.6
dollars billion in 2006.
Nooyi was named on Wall Street Journal's list of 50 women to watch in 2007 and 2008,
and was listed among Time's 100 Most Influential People in The World in 2007 and
2008. Forbes named her the #3 most powerful women in 2008. While CEO of PepsiCo
in 2008, Indra Nooyi earned a total compensation of $14,917,701, which included a
base salary of $1,300,000, a cash bonus of $2,600,000, stocks granted of $6,428,538,
and options granted of $4,382,569.
AROUND THE WORLD
PepsiCo is a world leader in convenient snacks, foods and beverages with revenues of
more than $43 billion and over 198,000 employees. PepsiCo, Inc. is founded by
Donald M. Kendall, President and Chief Executive Officer of Pepsi-Cola and Herman
W. Lay, Chairman and Chief Executive Officer of Frito-Lay, through the merger of the
two companies. Pepsi-Cola was created in the late 1890s by Caleb Bradham, a New
Bern, N.C. pharmacist. Frito-Lay, Inc. was formed by the 1961 merger of the Frito
Company, founded by Elmer Doolin in 1932, and the H. W. Lay Company, founded by
Herman W.Lay, also in 1932. Herman Lay is chairman of the Board of Directors of the
new company; Donald M. Kendall is president and chief executive officer. The new
company reports sales of $510 million and has 19,000 employees. Pepsi-Cola
Company - Pepsi-Cola (formulated in 1898), Diet Pepsi (1964) and Mountain Dew
(introduced by Tip Corporation in 1948).Frito-Lay, Inc. - Fritos brand corn chips
(created by Elmer Doolin in 1932), Lay's brand potato chips (created by Herman W.
Lay in 1938), Cheetos brand cheese flavored snacks (1948), Ruffles brand potato
chips (1958) and Rold Gold brand pretzels (acquired 1961).Mountain Dew launches its
first campaign "Yahoo Mountain Dew ... it'll tickle your innards."
PEPSI PARTNERS
PepsiCo also has formed partnerships with several brands it does not own, in order to
distribute these or market them with its own brands.
Frappuccino, Starbucks Double Shot, Starbucks Iced Coffee, Mandarin (license), D&G
(license), Lipton Brisk, Lipton Original Iced Tea, Lipton Iced Tea, Ben & Jerry's
Milkshakes, Dole juices & juice drinks (license), Sunny Delight (produced by PepsiCo
for Sunny Delight Beverages)
POSITION OF PEPSI IN INDIA
Total soft drink segment is growing at the rate of 10% per year still International
standard area considered the per capita consumption of the Indian Soft drink industry is
rock bottom, less than even our neighbour Pakistan and Bangladesh where it is four
times more than the Indian consumption rate.PepsiCo established its business
operations in India in the year 1989 It is now the 4th largest consumer products
company in India PepsiCo has invested more than USD 1 billion in India since its
establishment. PepsiCo has a diverse range of products from Tasty Treats to Healthy
Eats It provides direct and indirect employment to 150,000 people in India It has 41
bottling plants in India and fast catching up to Coke, of which 13 are company owned
and 28 are franchisee owned It has 3 state-of-the-art food plants in Punjab,
Maharashtra and West Bengal
BRANDS OF PEPSI IN INDIA
PEPSI:
Pepsi 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 1886, United States of America. Caleb Bradman, the man with a plan, got on to
formulate a blockbuster digestive drink and decided to call it Brad’s drink. It was this
doctor’s 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.
7 UP:
7UP, the refreshing clear drink with natural lemon and lime flavour was created in
1929. 7UP was launched in India in 1990 and its international mascot Fido Dido was
used for advertising in 1992 to position the brand as a cool drink for youngsters. Fido
became an instant hit with his trendy look, laid back attitude and refreshing take on life.
During the brand’s early years in India, 7UP gained market leader status in the lemon
lime category by being one of the first to be nationally distributed as well as being
marketed as a healthier alternative to other soft drinks
TROPICANA:
Tropicana was founded in Bradenton, Florida, USA, in 1947. And is now enjoyed almost
everywhere in the world. Carefully nurtured for over 50 years, it has matured into one of
the most respected beverage brands. Today it is the World's no. 1 juice brand and is
available in 63 countries. Since 1998, it has been owned by PepsiCo, Inc. Tropicana
Premium Gold was re-launched as Tropicana 100% in year 2008
SLICE:
Slice was launched in India in 1993 as a refreshing mango drink and quickly went on to
become a leading player in the category.
In 2008, Slice was relaunched with a 'winning' product formulation which made the
consumers fall in love with its taste. With refreshed pack graphics and clutter breaking
advertising, Slice has driven strong appeal within the category.
NIMBOOZ:
Nimbooz was launched in India this year on the 28th of February 2009. Latest addition
to portfolio of Pepsi Beverages Nimbooz is a great tasting product which has capitalized
on the existing familiarity & behavior of high frequency consumption of unpackaged /
Home made nimbu pani. It has been true to its Asli Indian Identity by owning and
appropriating nimbu Pani Codes such as the Matka (Earthen Pot) and Squeezer.
MOUNTIAN DEW:
The main formula of Mountain Dew was invented in Virginia, named and first marketed
in Johnson City, Tennessee and Knoxville, Tennessee in 1948. In India, Mountain Dew
set the soft drink category ablaze in 2003 with their iconic launch campaign “Cheetah
Bhi Peeta Hai”. 2007, the brand was re-launched with a completely new, punchier
formulation with communication that aimed at forging a strong emotional connect with
our audience. Thus came about the "Darr Ke Aage Jeet Hai" campaign, which
acknowledged that fear was a very real and relevant aspect of the adventurous world
and Mountain Dew, as a brand wanted to encourage all youth in their moment of fear, to
believe in themselves and just go for it because beyond fear, lies victory.
MIRINDA:
Now when we think Mirinda, we think orange. But this soft drink brand has many other
fruit flavors; Mirinda Lemon was launched in 1998 & other flavors like Apple & Batberry
that were launched as in & outs.
Mirinda has always been about a great orange taste, which is now synonymous with the
brand. These were communicated through our great campaigns; the memorable Mirinda
Men to Taste Aisa Chaye Character Fisla Jaye.
AQUAFINA:
Aquafina was first launched in USA in the year 1994 and with its unique purification
system and great taste; Aquafina soon became the best selling brand in the country.
In India, Aquafina’s journey began with the Bombay launch in 1999 and it was rolled out
nationally by the year 2000. On the strength of its brand appeal and distribution,
Aquafina has become one of India's leading brands of bottled water in a relatively short
span.
Market Share in India
The two global majors Pepsi & Coca – Cola dominate the soft drink industry market.
Coca – Cola, which had winded up its business from India during the introduction of
IERA regime re-entered in India after 16 years letter in 1993. Coca – Cola has acquired
a major soft drink market by buying out local brands like Thums up, Limca & Gold Spot
from Parle Beverages. Pepsi although started a couple of years before Coca – Cola in
1991, right now it has lower market share. It has brought over Mumbai based Dukes
range of soft drinks. Both Cola manufactures Pepsi & Coca – Cola come up with their
own market share & claim to have claimed to increase their share
Company Profile of Coke
CEO Coke
DOUGLASN DAFT
Chairman of the board and Chief Executive officer
ABOUT THE COCA COLA COMPANY CEO
Douglas N. Daft was elected chairman board of director and chief executive officer of
the Coca-Cola company on Feb. 17, 2000 Mr. Daft is the 11 th chairman of the board in
the history of company.
Mr. Daft 60 joined the company in 1969 as planning officer in Sydney, Australia office.
He held of increasing responsibility throughout Asia and in 1982 was named vice
president of Coca-Cola Far East Ltd.
In Dec.1988 Mr. Daft was named president of north pacific division and president of
Coca-Cola (Japan) co. Ltd. He moved the company’s Atlanta headquarters.
In 1991 to assume the responsibility of president of the pacific group and in 1991 his
responsibility was expended to include the com. Africa Group and Schweppes
Beverage Division as well as the middle and Far East Group.
Mr. Daft was elected president and Chief operating officer of the Coca-Cola com. In Dec
99’.
He serves on the board of Sun Trust Banks, the boys and girls club of America Catalyst
the Cerge-Ei foundation (Centre for economic Research and Graduate Education-
Economic Institute ) in the Czech Republic , the Lauder Institute for Management and
International Studies at the University of Pennsylvania, the Prince of Wales International
Business Leader Forum , the Grocery Manufactures of America The British American
Chamber of Commerce ,the G100,the Woodruff Arts Centre, the Commerce Club, and
the McGraw-Hill Companies. Mr. Daft is a trustee of Emory University, the American
Assembly and the Centre for Strategic &International Studies. He is also a member of
the Trilateral Commission, the Business Council and The Business Round Table.
AROUND THE WORLD
Although Coca-Cola was first created in the United State it quickly became popular
wherever it went. Their first International bottling plants opened in 1906 in Canada,
Cuba and Panama soon followed by many more bottling plants in different
countries .Today we produce more than 300 brands in 200 courtiers and more than
70% of their income comes from outside the U.S, but the real reason they are truly
global company is that our product meet the varied taste preferences of consumer
everywhere.
COKE PARTNERS
The Coca-Cola Company works with a wide variety of organization to support health,
fitness and good nutrition.
The Coalition for Healthy and Active America (CHAA) CHAA was formed in 2003 by
concerned organization and national leader to educate parents, children, schools and
communities about the critical roles physical activity and nutrition education play in
reversing the alarming trends of childhood obesity. As a non profit National grassroots
coalition, CHAA is a various advocate for developing health and active lifestyle for
America’s youth. CHAA is committed to working with schools to rededicate time for
physical fitness giving parents the freedom to their children make their own nutritional
choice, building school business model relationship that benefit our families by support
healthy and active lifestyle and finding solution to the childhood obesity that are both
responsible and realistic American Council for fitness and nutrition. The American
Council for Fitness and Nutrition (ACFN) is a group of food, beverage and consumer
products companies, non profit organization and trade association working together to
improve the health of Americans, particularly youth by encouraging a healthy balance
between fitness and nutrition. The cornerstone of all ACFN initiative is the idea that
lasting solution to the nation’s obesity problem must be based on sound science and
behavioural research. Such policies are likely to help parents and their children develop
eating and exercise habits that lead to a healthier life.
Grocery Manufacture of America The Grocery Manufacture of America (GMA)
represents the food ,beverage and consumer products industry on key issue that affect
the ability of brand manufacture to market their products and deliver superior value to
the consumer.
International Food Information Council (IFIC) Foundation the IFIC Foundation is a
public education foundation disseminating sound, science-based information on food
safety nutrition and health. International Life Science Institute (ILSI) is a non profit
worldwide foundation that seeks to improve the well being of the general public through
the pursuit of balance science. Its goal to further to understanding of scientific issue
relating to nutrition food safety toxicology risk assessment and industry.Kidnetic.com is
a fun interactive website that emphasize healthy achieved through s balance of physical
activity and responsibility eating habits The website gives young people and their
parents the tools and idea to help change habits and plant the seeds for healthy families
tomorrow.Kidnetic.com is a program of the International Food Information Council
(IFIC) Foundation.
National Association for Sport and Education Association for sport and Physical
Education seeks to enhance knowledge and professional practice in sport and physical
activity through scientific study and dissemination of research based and experimental
knowledge to members and public.
National Soft Drink Association (NSDA) is the trade association for America Soft
Drink Industry serving the pup
THE PRESENT POSITION OF COKE IN INDIA
Coke is a house hold name and in the lips of every one. In present time every person
knows the name of Coca Cola since India is one of the biggest markets for the Soft
Drink Company and sultry summer from March to the end of October and a huge
population has immensely helped in the sales of coke in India.
Last year the market share of Coca-Cola was not specific. In this year company’s top
management adopted new policy and increased the rate of all brands of Coke. By this
decision top management determined the rate of 300ml Rs.15.And the brand of 200ml
determine the rate of this brand Rs.10 only .By which medium size family can buy and
enjoy Coke. By this decision company marketing share has been increasing. In present
time Coke captured approximate 57.8% market share. Now Coke has made a huge shift
away from the distributors serving the retailers according to the type of service. Due to
this Coke has gained appropriate position in the minds of the retailer .It has now
emerged as the winner and has a good image in the market Cola have thus gained a
status symbol mainly attributed to its standard and well penetrated, advertising and
extensive distribution network.
Total soft drink segment is growing at the rate of 10% per year still International
standard area considered the per capita consumption of these serving in rock bottom,
less than even our neighbour Pakistan and Bangladesh where it is four more as much.
So with kind of a market potential coke entered in India in 1991. The government in
Pune in 1992 allowed the plant to establish its first bottling plant. Now the company has
grown to about 59 bottling plants throughout India.
COKE BRANDS IN INDIA ORIGIN
COCA-COLA:
Developed in brass products in 1886, coca-cola is the most recognised and admired
trademark around the globe. Not to mention the best selling soft drink in the world.
SPRITE:
In 1961, a citrus flavoured drink made its U.S. debut, using “sprite boy” as inspiration for
the 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 the U.S., and the world’s
most popular lemon-lime soft drink. But In India It Is not of citrus in nature and is pure
caffeinated carbonated water.
FANTA:
The name “FANTA” was first registered as a trademark in Germany in 1941, when it
was used for a few years for the soft drink created from available material and flavours.
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 flavoured drink
sold around the world.
DIET COKE:
The extension of the coca-cola name begun 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-calories soft drink in the world.
VANILA COKE:
It is an ice-cream in taste launched in 2004. But it failed miserably in the Indian Markets
LIMCA:
This is thirst—quenching beverages features a fresh and light lemon-lime taste and a
light hearted attitude. The Limca brand was introduced in 1971 and acquired by the
coca-cola company in 1993.
MINUTE MADE PULPY ORANGE:
This is a one of a kind natural orange drink introduced by Coke. It does contain natural
pulp but the juice inside is manufactured the same way as all the other drinks are
manufactured in the coke brand.
MAAZA:
Maaza launched in 1984 and acquired by the coca-cola company in 1993, is a non-
carbonated mango soft drink with a rich, juicy 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. It has the
highest market share in the Indian Soft drink industry.
KINLEY WATER:
This is the thirst quenching beverages features fresh the water with the saturated
oxygen level.
GEORGIA:
This was first introduced in 2004 it is hot tea and coffee products by Coke it is mostly
sold in restaurants and not in the local shops it is being sold both in the hot and the cold
beverages format.
Market Share (in %) 2012
Brand Name Market Share (org figure) Market Share (IMRB)
Pepsi 35.6%
Coca – Cola 57.80%
Other Brands 6.6%
Source: Economic Times
CHAP :8 SWOT ANALYSIS
7. Comparative Analysis of Coke and Pepsi
The soft drink market all over the world has been witnessing to neck to neck battle
between the two major players, coca-cola and he Pepsi since the very beginning. The
thirst quenchers are trying to have the major chunk of the pie of carbonated soft drink
market. Both the player is spending their energies in building capacity, infrastructure,
promotional activities etc.
Coca-cola being 11 years older than Pepsi has dominated the scene in most of the soft
drink markets in the world and enjoying leadership in terms of market share. But the
coca-cola people are finding it hard to keep away Pepsi, which has been narrowing the
gaps regularly. the two are posing threats to each other in every nook and corner of the
world wide coca-cola has been earning most of its bread and butter through beverages
sales, Pepsi has multi products portfolio with some portion from the same business.
The two warriors are face to face once again herein India with different strategies and
tactics to attack the rivals. Coca-cola is focussing upon the joint venture with the
existing bottlers (Fobo) franchise owned bottling operations to enhance its control on
manufacturing and marketing of its products range and attain quality standards of its
class. Countering its Pepsi has taken the battle of its own hands by floating as
investment of $ 95 billion to set Pepsi Company. India holdings, as subsidiaries for
(Cobo) company owned bottling operations. Both companies are following different
paths to reach the same destination i.e. to grab a bigger portion of aerated soft drink
market. Both consider India as a Hugh potential market, as per capita consumption here
is mere 3 serving annually against the world average of 80. Therefore, they are putting
there best efforts to woo the Indian consumer who has to work for 1.5 hours to buy a
bottle of soft drink. In comparison to international norms minutes, a major hurdle to
cross over for the athletes for getting no. 1 position comparison to the inter. Coca-cola is
well set with its 53 bottling sites through out the country giving it an edge over
competition by processing a well-built bottling and distribution set up. On the other
hand, Pepsi, with two more years in India, has been able to set as image of a winner in
India and has been able to get the pulse of the Indian soft drink market. The soft drink
giants are leaving on stone unturned and her for the long terms.
Coca-cola has been penetrating the market through its worldwide products range with a
determination to change consumption pattern of soft drink in India. Firstly, they
upgraded the whole industry by introduction 300ml bottles, which in turn had given the
industry a booming growth of 20% as compared to the earlier 5%. They meant to
develop a coca culture here and are working on a strategy to offer soft drink in every
possible package. In Coca-Cola camp, the idea of competition has not come from
Pepsi. But from the other beverages such as tea, coffee, nimbus, pani, water etc. Coke
has used a large sum on the visibility of its red and white logo. They have been going
along with aggressive marketing by enrolling Amir Khan, Akshay Kumar and their
advertisement to endorse their brand, the role models of its targeted consumer the
teenagers
Pepsi is quite aggressive in its approach to Indian consumer. They are desperately
working on the strategy to be the winner in the hot cola war between two big barons.
According to Pepsi philosophy, it is the madness that encourages executive to think, to
conjure up those creative tactics to knock the fizz out of their competition.. Pepsi have
increased the fizz in the market place by introducing the dispensers called fountain
Pepsi and have been enjoying a lead over its rival there. Coca-cola on the other hand,
has been working in the saying slow and steady wins the race’s side by retailing to
every more of its competitors. They have procured the shield of thumps up with a
handsome market share in Indian soft drink market. Countering commercial that used
two chimpanzees to rock a snoop at coke, thumps up with the ad line, don’t be bender,
and taste the thunder Also. Thumps up has been positioned now them very near to that
young image of Pepsi and giving it a through time.
These cool merchants have put everything on fire. Its coke gets the status of the official
drink of the wills. World cup, Pepsi blushes as nothing official about it. As thumps up
projected as ‘saare jahan se achcha’, pepsi was passionate enough with ‘freedom to be’
and now the “yeh dil maange more” when thumps up came with thunder blast, the
offered “Pepsi stuff card”. If red is meant for coke, Pepsi chosen to be blue.
“In the U.S., it’s a closer race between coke and Pepsi”, said Bonnie Herzog, an
industry analyst with smith Barney. “But when you take a look outside the U.S.”. I think
coca-cola has the major lead.
Indeed, 75% of Coke’s profits now come from the foreign markets it dominates. While
back home the slugfest has gone on for decades.
“I think makes us all better”, said Pepsi vice president of marketing; Katie Lacey. It’s
alone thing about working in a very competitive category. You absolutely are on your
toes. We do not let it dictate how are or think everyday. We are focused on how we are
going to grow our brands.
With public opinion split, there’s is no. of problem for both coke and Pepsi. Volumes of
carbonated soft drink I north America is growing at less than one present a year.
Meanwhile, sports drinks like Gatorade are growing at 15% year. And bottled water is
expending by 26 permanent annually. In a saturated soft drink market; water is where
the growth and money are, according to Herzog. For now, Pepsi’s Aquafina is beating
coke’s Dasani in the water wars.
It’s just the latest front in a battle between hundreds of Coke and Pepsi brands. Diet
coke vs diet pepsi, sprite vs. mountain dew, nestle vs. Lipton Tropicana vs. minute
maid. And the list goes on.
But for Pepsi- it’s not all about drinks. Some 60% of its profits come from its snack
business. From Fritos to lays to crack jack and Tostitos, Pepsi has virtual monopoly,
with no competition with coca-cola.
“They are going after the younger consumer who purchase a single serve products, at a
convenience store 9-13”, said Todd Stender, who fellows the company at Crowell
Weedon and co.”, and that’s really where the profits are”.Cokes, meanwhile, just scored
a big coup by winning the soft drink business at subway, a fast food chain now bigger
that McDonald’s, that had previously served only Pepsi.
Market Share of Indian Beverage Companies [Market Share (in %) 2010]
Market Share
PepsiCo India, 35.60%
Coca-Cola India , 57.80%
Other Indian Companies,
6.60%
Coca-Cola India
PepsiCo India
Other Indian Companies
Source: Economic Times, org figure
The Pi Chart Shows That Coke has a major lead in India Capturing the huge Chunk of
the market share while Pepsi on the other hand has very less Market share compared
to coke but it is growing.
Table 6.1: Market Share of the Respective Companies [Market Share (in %) 2010]
PepsiCo (2009-10) Coca-Cola (2009-10)
Pepsi – 13.1 % Coca – Cola – 8.2%
7 UP – 5.8% Thums Up – 16.4%
Mirinda Lemon – 0.4% Sprite – 12.2 %
Mirinda Orange – 8.9% Limca – 10.9%
Mountain Dew – 5.8% Fanta – 10%
The above table shows the dominance of Coca-Cola in India. Coke had used a good
strategy in buying of established Indian drinks Like Thumbs-up and Limca from Parle
Agro group of companies which now consist of 26% of the market share and thus
grabbing a huge piece of the market. Pepsi on the other hand is mostly surviving on its
Pepsi cola brand of drinks which consist of 13.1% which has the second largest market
share after Thumbs-up. Pepsi has a reason to smile as the 7-up and mountain dew
brands are growing fast and capturing the market share slowly but steadily.
CHAP :8 SWOT ANALYSIS
8. Swot Analysis
8.1 SWOT OF COKE
STRENGTH:
1. Coca-cola potential brands position in the market.
2. Good quality and innovation of product for long term customer relationship.
3. Good advertising campaign, and brand ambassador.
4. Advertisement campaign more effective and change of punch line make an Emotional
touch with customer and retail.
5. High investment in research and development.
6. Coca-cola has a good market share.
7. Segment of coke product to every age group.
WEAKNESS:
1. Lack availability 1 it & 1.5 it product pack.
2. Lack supply of Kinley water in the market.
3. Retailers are unhappy with schemes at any time.
OPPORTUNITY:
1. Coke is able to grab large market share as the Indian consumer base is growing.
2. More monopoly counters of coke brand.
3. To improve market mix (product, price, promotion, place)
4. To increase the sale of Kinley.
THREATS:
1. Pepsi is the major competitors.
2. Pepsi has captured major market of 500ml, 1.5 & 2 it.
3. Retailers divert to Pepsi because they are getting good schemes and SGA signage.
8.2 SWOT OF PEPSI
STRENGTH:
1. Pepsi has a good brand image.
2. Good quality and innovation of product for long term customer relationship.
3. High investment in research and development.
4. Segment of Pepsi product to every age group.
WEAKNESS:
1. Lack of proper distribution in many areas.
2. Lack Of retailers in the market.
3. No of distributors enough to retailers.
OPPORTUNITY:
1. Pepsi has a growing market share and can capture new consumers as the Indian middle
class is growing
2. To improve market mix (product, price, promotion, place)
3. To increase the no of retailers who sell the Pepsi brand
4. To capture the growing clout of mountain dew and to hold on to its new followers
THREATS:
1. Coke is the major competitor.
2. The Brand of Thumbs-up and Sprite have a major fan following in India which belongs to
coke
3. Coke has higher retailers compared to Pepsi meaning increasing availability of coke
CH: 9
FIVE FORCE ANALYSIS
9. Five Force Analysis of Aerated Industry
9.1 Threat of Competitors
The growth of Punjab Agro is also another threat for coke as it is a strong locale player
and created great brands like Thumbs-up and Limca due to which the market share of
coke is high after buying these brands. It has a growing presence in the fresh juice
market.
The local Drinks like the local soda shops the nimbu pani walas and the fresh juice
sellers still have a good presence in the local market and are also considered to be a
better option by the people specially during summers
9.2 Threat of Substitutes
The major substitute to the aerated industry is the influx of fresh juices where people are
changing from the fizzed juice to the fresh juices.
The other is the growth of the concentrated juice market like Rasna and Tang have a
considerable market share in India. People of India like to make easy things and so its
better to make 7 to 12 glasses of Rasna which is a cheaper option than compared to
spending more money in buying Fizzed Juices
9.3 Threat of new Entrants
The major threat in the rise of the Indian aerated industry is the disease called Diabetes
where there are increasing number of People who are acquiring this diseases thus
people are slowly decreasing the consumption of fizzed juices
There are juices which being fresh and having natural sugar are slowly capturing the
market of fizzed juices
The number of health conscious people are increasing day by day who are decreasing
the consumption of fizzed juices and turning towards fresh juices which is obviously a
healthy option
9.4 Bargaining Power of Buyers
The buyers over here are retailers and the organized juice market has only few
companies to choose from and 93% of the market shares are captured by the Giants
Coke and Pepsis so the retailers are stuck with the giants and have less bargaining
power.
The people also prefer juices from the giants as of now so the retailers would obviously
sell the product with the popular demand so they have no choice but to sell the product
of the giants. So the bargaining power of buyers is extremely low in this case.
9.5 Bargaining power of Suppliers
Here the suppliers of the concentrate are the manufactures them selves the main supply
channel is the government licence for using underground water to mix with the juice
concentrate
The next supply is the sugar used in the concentrate by the manufactures from the
farmers
The government has a good bargaining power over the companies thus if the licence is
revoked then the company has no supply of water. The same happened with coke; coke
was forced to give out its secret and government cut its water supply so coke left India in
1977 and returned during the period of liberalization in 1993
CH: 10
Area – Sarojini Nagar,AAshiyana,LDA Colony
Visi Index = Pepsi Visi Coke Visi
=44/39
=1.128
1.12820512820513
4439
70
1.12820512820513
VISI INDEX
Observations:
1. Visi – Pepsi having a better position in the given area.
62.85% shops are having Pepsi visi where 55.71% are having ccx visi .
Complains about refrigerators.
Relatively Low presence of Coke.
Better after installation services from coke.
At least 37% shops don’t have visi.
Cover the untapped market.
Exclusive Index = Only Pepsi Only Coke
= 5/3
=1.66
70 1.66666666666667
5 3
70
1.66666666666667
EXCLUSIVE INDEX
Observations:
2. Exclusive Index- Pepsi in this index is also dominating in comparison to coke. Pepsico is having more exclusive selling outlets.
Total Index = Total Pepsi Shops Total Coke Shops
= 67/65
=1.030
pepsi coke total shops index
1 2 3 41 2 3 41
23
4
6765
70
1.03076923076923
TOTAL INDEX
Observations:
3. Total Index:
Out of 70 shops surveyed Pepsi has covered 67 shops while coke has only 65 counters.Pepsico has covered almost 96% of the market.Almost equal presence of Coke.
Area of Opportunity:
Visi – Almost 35% shops are still working with ice boxes or self purchased refridgrators, if this can be covered we can have a competitive edge over coke.
There are many shops where sale of soft drinks can create a good business but they are not interested, if we can convert them by explaining profits and better services in the area, we can create more business.
Personal suggestions:
Increased supply of Mountain Dew can give a competitive advantage.
After installation services should be improved.
On time delivery can create positive difference.
Area – Narhi,Daalibagh,Aliganj
Visi Index = Pepsi Visi Coke Visi
=108/107
=1.009
pepsi coke total shops index
108 107
150
1.00934579439252
VIZI INDEX
Observations:
In the above shown chart we can see that in this area pepsi and coke, both are having almost same mass of market in the context of visi but still the market has more possibilities.
Visi index is just more than 1 can be called satisfactory. Exclusive Index = Only Pepsi
Only Coke
= 38/23
=1.652
38 23 150 1.65217391304348
3823
150
1.65217391304348
EXCLUSIVE INDEX
Observations:
The exclusive index in this area is good as we have 38 exclusive counters in the comparison of coke’s 23 counters.
As we can see in the chart that market is having potential and we can improve our figures by improving our services, we can create a lot more of exclusive counters.
Total Index = Total Pepsi Shops Total Coke Shops
= 127/112
=1.133
127 112 150 1.13392857142857
127112
150
1.13392857142857
TOTAL INDEX
Observations:
The total index of this area is also giving positive results. We have 127 total counters where coke has only 112. But as we can see that total shops surveyed are 150 so here also we
can increase our counters.
Area of Opportunity:
Coke and Pepsi having neck to neck competition, its necessary to be always on toes as just one single moment of relaxation can pave way for the competitor to gain place in the market. So continuous measures should be taken to maintain this good position. Retailers
should be always provided with the facilities and the services they need. Frequent visits should be made to the shops to check whether the cooler is working properly or nor because this is an area where lots of shops are found and if you are not able to fulfill there need of chilled softdrink then they have a choice of switching over to the other brand and in this the retailer even can’t do anything. So visi should be installed in almost all the shops with good schemes given to them.
Personal suggestions:
For maintaining this position in the market, I would suggest that the areas being the few good areas and so here some promotion activities for the youngsters should be done in which they can participate and by this they can promote their brand. Keep on adding different flavors to the drink as per the requirement of the people would serve the purpose. The packaging can be changed from time to time. Hoardings at the public places are good techniques.
The services part need to be taken care of. Customers being the king, if they are not satisfied then no company can flourish, and so customer’s needs should be taken care of. Time to time surveys should be done so as to know where we are lacking behind and instant changes should be made for the betterment of the company.
Area – Campwell Road,Mohan Road
Visi Index = Pepsi Visi Coke Visi
=38/36 =1.055
pepsi coke total shops index
38 36
50
1.05555555555556
VIZI INDEX
Observations:
In this area total shops surveyed were 50 and we have covered 38 with our cooling machines which is definitely a good situation though coke has also 36 machines in the market it means there is a really tough competition.
Exclusive Index = Only Pepsi
Only Coke
= 12/1
=12
pepsi coke total shops index
12
1
50
12
EXCLUSIVE INDEX
Observations:
In the case of exclusive index of this area we are again in the batter position than coke but again we can do more as the market still has capabilities
Total Index = Total Pepsi Shops Total Coke Shops
= 50/38
=1.315
pepsi coke total shops index
50
38
50
1.31578947368421
TOTAL INDEX
Observations:
In the case of total index we are doing pretty good in this area as each and every shop surveyed was selling pepsico products.
Area of Opportunity:
Market still has many possibilities and caliber so a better composition of pre and post sales services and same in the case of visi installation can make a difference in gains.
In this area coke has a weaker distribution network so we can use their weakness as our opportunity.
Both the competitors in this area having issues regarding proper time and amount of delievery .So as soon as we can solve these issues they will start to act as an opportunity for us.
Personal suggestions:
My personal suggestions for this area also will remain same as in previous areas accept we can promote ice boxes more in this area because in this area there are many small “Paan Walas’ and they are almost untapped.
Area – Ganeshganj, Maulviganj
Visi Index = Pepsi Visi Coke Visi
=37/33
=1.121
37 33 37 1.12121212121212
3733
37
1.12121212121212
VIZI INDEX
Observations:
Visi index of this area showing a really good picture as we have covered almost whole market with our cooling machines.
Exclusive Index = Only Pepsi Only Coke
= 04/01
=4
pepsi coke total shops index
1 2 3 412
34
12
34
41
37
4
EXCLUSIVE INDEX
Observations:
Exclusive index is good but in reality we have really few exclusive shops in the area that means we are in the better condition than our competitor but we can improve this a lot.
Total Index = Total Pepsi Shops Total Coke Shops
= 37/33
=1.121
37 33 37 1.12121212100001
3733
37
1.12121212100001
TOTAL INDEX
Observations:
But in this case total index is showing real gud picture as we can see that we have our supply in each and every shop surveyed.
Area of Opportunity:
Just like other area in this area also there are many distribution channel related problems as coming up and these problems can be proved as opportunities if we can solve them before our competitors.Apart from this we can see that the market is also increasing day by day in this area as the customer needs are bigger than the market.
So we can say that the market is soon going to give us many other opportunities.
Personal suggestions:
My suggestion would be just to keep up the good work. The distributors are doing a good job there and there are no problems regarding the visi.