PROJECT REPORT

ON

“BRAND POSITIONING STRATEGIES”

OF

“PEPSI”

IN COMPARISION WITH

“COCACOLA”

Submitted To M.D. University Rohtak, For the Partial Fulfillment Of The

Award of Degree Of

MASTER OF BUSINESS ADMINISTRATION

BATCH: 2008-2010

Under the guidance of: Submitted by:

MR. Narender Tanwar DEEPAK SINGH
Lecturer. In MBA deptt. MBA 4th Sem.
Roll no.08/mba07

Bhawani Shankar Anangpuria

INSTITUTE OF TECHNOLOGY & MANAGEMENT

(Approved by AICTE, Govt. Of INDIA & Affiliated to M.D.U., Rohtak)
Alampur, Faridabad -121004

1
 ACKNOWLEDGEMENT

I was delighted to avail this opportunity to thank all those who have contributed in our efforts in
the development of the project and making it a success, which would have been a difficult, task
otherwise.

I would like to express my gratitude to my guide Mr Narender tanwer, who guided me through
out the project work and special thanks for the care and concern shown by him.

I am highly thankful to Head of department of M.B.A. Faculty, which provide a chance to work
with these brands.

In last but not a least, I am thankful to shopkeeper,users which provide a time for questionnaires.

Date-
Place- Deepak singh

2
 PREFACE

The curriculum of MBA is so designed that it besides providing theoretical knowledge gives
practical experience to the participants, with an opportunity to deal with real life situation
through field visitor or as research project dissertation are enriched and well equipped to face the
future challenge and counting excise which are enriched and inseparable and unavoidable in
business.
The objective of research project is to impart the student with the practical experience and an
exposure of the corporate world. The student has to complete research project under the
professor of his institute and do a project which he thinks would add to knowledge and he will
learn about how We work on market research of any particular topics.
I fortunately got an opportunity to do my research project on “COMPARATIVE ANALYSIS OF
BRAND POSITIONING STRATEGIES OF PEPSI AND COCA COLA”.
Working on this project was a rewarding time for me, where I came to know about the various
programmatic aspects of managerial work and management.

3
 Declaration

I Deepak Singh roll no 08/MBA07. M.B.A.4th Semester of institute of ‘Bhawani Shankar

Anangpuria Institute of Technology & Management’ Faridabad hereby declare that the project
entitled “Comparative Analysis Of Brand Positioning Strategies of Pepsi And Coca Cola” Is
an original work and the same has not been submitted to any other institute for the award of any
other degree. The interim report was presented to the supervisor on Mr. Narender Tanwar asst.
professor’s feasible suggestions have been duly incorporated in consultation with the supervisor.

Deepak Singh

4
 TABLE OF CONTENT

CHAPTER – 1

Objectives

CHAPTER – 2

Company Profile
• History of Pepsico

 Beverages industry in India

 Entry of Pepsico in India

• History of Coco-Cola

• SWOT Analysis

CHAPTER – 3

Introduction of the Topic

CHAPTER – 4

Research Methodology

5
CHAPTER – 5

Data Analysis& Findings

• Flavours of Pepsico & Coca-Cola

CHAPTER – 6

Findings

CHAPTER – 7

Limitation & Conclusion

CHAPTER – 8

Recommendations & suggestions

CHAPTER – 9

Bibliography

CHAPTER - 10

Annexuer:

• Questionnaire

6
CHAPTER - 1

7
OBJECTIVES OF

THE

STUDY

8
 OBJECTIVE OF THE STUDY

• To know the main branding strategies followed by the company to create a better mbrand

image.

• To Study customer’s attitude towards Pepsi & Coca-Cola.

• To determine the importance of brand positioning in present marketing scenario.

• To determine the factor influencing the choice of customer regarding stated cold drinks..

• To know how brand positioning is done by Pepsi and Coca-Cola.

It is widely accepted that theory broadens ones thinking and help in idea generation. But

practical approach tends to test the feasibility of these ideas and how far theortical knowledge

can be applied in a situation successfully.

9
CHAPTER - 2

10
COMPANY

PROFILE

11
HISTORY OF

PEPSICO

12
HISTORY OF PEPSICO

The wall street journal names indra nooyi one of 50 women to watch (in line to lead

Margo posey, president of the DFW MBDC presented bob Gonzalez with president’s award fro-

meritorious service to the council over the years. Pepsico is mentioned among 26 companies that

earned Governance metrics International’s (GMI) highest governance rating. National minority

Supplier Development Council (NMSDC) names pepsico one of the “ Corporations of the year”.

Minority Business News names pepsico Chairman and CEO Steve Reinemund “ Executive of

the year”. PEPSI Musica Website Wins “ Best Interactive Marketing Digital Community”

Award from the Latino Marketing Awards. The Maxican Center of Philanthrophy ( CEMEFI)

honored Sabritas- pepsiCo’s Mexican salty-‘snack business—with the Best Practice in

Corporate Social Responsibility Award for 2004 in the community affairs category.

Latin Trade Reader Survey Names PepsiCo # 7 in the list of latin America’s Most-Respected

companies.

PepsiCo is chosen for the 2005 list of the NAFE Top 30 Companies for Executive women.

Frinto-Lay launches Doritos Edge and Tosit Gatorade introduces Gatorade Endurance Hydrance

Formula -- a specialized Sports drink to meet the ne

Frito-Lay introduces Quaker Chewy Cookies & milk granola bars and Quaker Fruit & Oatmeal

cereal bars.

13
Frito- Lay Canada eliminates trans fats from chips and launches a line of All Natural and

Organic products. PEPSI-Cola to launch PEPSI Edge ,the first full-flavored cola with 50% less

sugar , carbohydrates and calories than regular cola. PepsiCo publishes first Corporate

Citizenship report in its 2003 Annual Report. PEPSI-Cola launches sierra Mist nationall

Quaker chewy introduces Quaker Chewy Wholesome Favourites and Quaker Chewy Trail mix.

Gatorade unveils In-car Hydration system for NASCAR Drivers

SoBe soponsors U.S. Open snowboarding championships.

PEPSI announces plan to launch Mt. Dev Livewire, an orange drink this summer.

PEPSI- Cola signs an exclusive four –year sponsorship deal with Canadian Hockey

association ,making PEPSI the official soft drink. PEPSI announces four-year sponsorship

agreement with the UK Football association. Frito-lay announces new line of snaks made with

organic ingredients called “ Natural Snacks.” “PEPSI Stuff” Campaign kicks-off in Canada.

Frito-lay finds winner of “ Would you Name Your Baby Horton” search celebrating the “Re-

birth” of its Ruffles brand. The child will receive $50000 college tuition fund from Frito-Lay.

PEPSI CO creats pepsico international , the business that will unite all international snack,

beverage and food units in an effort to drive faster growth and improved profitability around the

world.

14
“Mr. Green,” a green – tinted carbonated soft drink with caffeine and ginseng, is launched under

sobe’s new age beverage line in April. The north American coffee partnership (NACP) , a joint

venture between starbucks coffee company and pepsico , inc. introduces starbucks double shot.

Quaker oatmeal this year celebrates the 125th anniversary of the nation’s number-one- choice for

a nutritious , hot breakfast cereal.

Gatorade turns 35. it was created in 1960’s to help performances of Florida Gators football team

and now is the leading sport drink. New line of Gatorade brand drinks, Xtremo, comes in the

three new flavours mango, Tropical and Citric.

Pepsico and Kenneth cooper, M.D. , M.P.H.,of cooper concepts inc. (CCI) , a division of the

renowned cooper Aerobics Centre in Details ,TX enters into an agreement to promote nutrition ,

fitness and wellness.

Dole Beverages enters chilled orange juice business as it launches five new flavours and

packages. PEPSICO reorganizes to unite North American beverage operations, including

PEPSI-cola, Tropicana and Gatorade ,into one new division PEPSICO Beverages and foods

North America. PepsiCo announces $5 billion share repurchase program.Starbuck unveils white

vanilla and coconut crème Frappuccino. Tropicana has new ad campaign for Tropicana Pure

Premium Healthy Kids – TV spots designed to capture the essence of children’s needs. Galaxy

Nutritional Foods launches Ulra Smoothies made with Tropicana juices. PepsiCo publishes

15
PEPSI-COLA launches “sierra mist” a caffeine-free,lemon/ lime soda. The north American

coffee partnership launched caramel-flavored bottled frappuccino coffee drink – the sixth flavor

addition to its popular line of ready to drink coffee. Pepsico inc reaches agreement to acquires a

majority stake in south beach beverages company , whose highly innovative so be brand has

made it one of industry’s most successful companies.

Pepsico completes the acquition of a majority stake in south beach beverage co. Pepsico sales are

$20 billion and the company has 125,000employment at year- Tropicana introduces two new

calcium – fortified pure premium juices:

Pure premium grove stand calcium and pure premium ruby red grapefruit calcium.

PEPSI launches “the joy of cola” advertising campaign. 1march , the PEPSI bottling group the

world’s largest pepsi bottler , begins trading on the new york stock exchange. It is listed under

the symbol PBG . the $2.3 billion public offering is among the biggest initial public offering in

stock market history. Steve reinemund named president of pepsico.

Hallie eisenberg “joy of cola” commercial’s named #6 of fifty greatest tv commercials of all

time, “ by TV guide. Lipton introduces iced tea green tea with honey and diet peach.

PepsiCo and Suntory limited signed an agreement to create a joint venture linking bottling

networks in north Carolina and New York. The new company, PEPSI bottling ventures will be

the third largest bottler in the Pepsi system.

16
BEVERAGES

INDUSTRY IN

INDIA

17
BEVERAGES INDUSTRY IN INDIA:

Indian beverages industrys size is Rs. 8000 crores and it is dominated by two players viz

PEPSI & COKE. This high profile industry has lot of potential for growth as per capita

consumption in India is 9 bottles a year as compared to 20 bottles in Sri Lanka, 14 in Pakistan,

while 12 bottles a person in Nepal.

The RKG Group is India’s leading supplier of retailer brand carbonated & non

carbonated soft drinks, with beverages manufacturing facilities in India & Nepal. Its experience

in the beverage industry dates back to the sixties when it had the first franchise at Mathura.

The family manufactures and markets carbonated & non carbonated soft drinks and mineral

water under Pepsi Brand. The various flavor and sub brands are Pepsi, Mirinda orange, mirinda

Lemon, Mountain Dew, & 7up, Slice orange, Everest soda and Aquafina. It has the lincence to

supply beverages in the territories of western UP, part of MP, half of Haryana, whole of

rajasthan, Goa three districts of Maharashtra, 13 districts of karnataka, and whole of Nepal. The

group has in total 18 bottling plants in India & Nepal is responsible for producing and marketing

44% Pepsi requirement in India.

18
 ENTRY OF

PEPSICO IN

INDIA
.

19
In 1988 , Fruit drinks market was valued at Rs. 40 crores & was growing at the rate of 2 % . In

the year 1985, the government rejected a proposal with R.P.Goenka group. This involved the

export of fruit juice concentrates from Punjab in return for the import of the cola concentrates.

The deal offered was 3:1 Export – import ratio in return for being allowed to market PEPSI in

Indian. The Rs. 22 crore PEPSICO would have an equity holding of 39% , Punjab Agro

Industries Ltd . (PAIC) 20% & VOLTAS 24%.

Pepsi’s share which have been originally just under 40 % was whittled to about

35% & PAIC’s share was hiked to 40% , these were mainly which coke had left India in 1977 .

Thus PEPSI not only accepted the conditions but also went much further. Finallt their was a

victory for pepsi who after more than 4 years of acrimonious battle was launched in june 1990

selectively in rajasthan , Punjab , uttar Pradesh & south as a “laher-pe

In 1991 , saw a major launch of 7up & mirinda in india , which was warmly received by the

Indian customers & consumers . 1993 was a new beginning for fountain pepsi (PMX). In 1984

PEPSI achieved the no.1 position in cola brand in India . In 1996 the Mirinda attained the No. 1

position in orange beverages category’s Mr. Ramesh Vengal was the first managing director

who was their till a april 1992, Mr. Suman Sinha the current president took over from him after a

long inning with Hindustan unilever ltd.(HUL).

20
Varun Beverages ltd. Was the new start , which was born in 1999 among the jaipuria group. Mr.

Ravi Kant Jaipuria launched this vest biggest plant among all other plant , which comes under

jaipuria group . this is the rising sun of jaipuria group. Mr. Ravi Kant Jaipuria group. Mr. Ravi

Kant Jaipuria who is the chairmain of this bottling plant has good result.

Mr. Ravi Kant Jaipurira got best Pepsi bottler award in 1998 for the best bottler in

the world. The best Pepsi award is the highest honorable award to any franchisee.The complete

new plant Varun beverages Ltd. Has structured in plot no. 477-479, 107 K.M. stone Agra- Delhi

NH-2 village dautana, The- Chatta disit. Mathura, Utter Pradesh. This is not only the bottling

plant per bottles are also manufactured. The present filling capacity of this plant is 1000 bottle

per minute with 2 lines. The two lines are glass bottles lines.

The annual capacity of this plant is around 88 lacks create of bottle soft Drink.

These beverage market under different brands named as Pepsi, Mirnda Lemon , Mirinda

Orange, 7UP, Leher Soda Etc

21
manufacturing process
Process flowchart
Water preparation softening
& treatment Sugar Raw sugar Q.C.testing
Syrup

Chemical &
Additives

Pepsi concentrate Finished sugar Q.C.Testing

Syrup Preparation

Beverages
Predaration Q.C.Testing

Co2 Carbonation of syrup

Bottle Washing Inspection Bottle Filling

Inspection Q.C. Testing

Dispatch

22
Organization Chart of marketing

UNIT HEAD
(DEEPAK BHALLA)

T.D.M.
(Dhamendra Jain)

A.D.C.

C.E.
(Sachin Dixit)

RA.M.

Retailer

Consumers

23
 VARUN BEVERAGE
MANUFACTURING PLANT

MARKETING VARUN B0EVERAGE

DIVISION

DISTRIBUTION

SUB DISTRIBUTION

RETAILERS

CONSUMERS
24
ABOUT RKJ GROUP

It can be said with absolutely certainly that the RKJ Group has carved out a special

niche for itself. Our services touches different aspects of commercial and civilian domains like

those of bottling. Food Chain and Education . Headed by Mr. R.K. jaipuria, the group as on

today can lay claim to expertise and leadership in the fields of education , food and beverages.

It business of the company was started in 1991 with a tie-up with PEPSI Foods

limited to manufacturer and market PEPSI brand of beverages in geographically pre-defined

territories in which brand and technical support was provided by the principals viz., PEPSI

FOODS Limited. The manufacturing facilities were restricted at Mathura Plant only.

25
 Varun Beverages Ltd. Is the flagship company of the group. The group also became

the first franchisee for Yum Restaurants International [ formerly PepsiCo Restaurants (India)

private Limited ] in India. It has exclusively franchise rights for Northern & Eastern India. It has

total 46 Pizza Hut Restaurants & 1 KFC Resturant under its Company.

We diversified into education by opening our first school in Gurgaon under

management of Delhi Public Schools society. The schools of the group are run under a

Registered Trust namely Champs Devi jaipuria Charitable Trust. Companies are mediumsized ,

professionally managed, unlisted and closely held between India Promoters and foreign

collaborators. The group added another feather to its cap when the prestigious PepsiCo

“International Bottler of the year” award was presented to Mr. R.K. Jaipuria for the year

celebrations at Hawaii, USA. The award was presented by Mr. Donald M. Kendall, founder of

PepsiCo Inc. in the presence of Mr. George Bush , the 41st President of USA, Mr. Roger A.

Enrico, Chairman of the Board & C.E.O., PepsiCo Inc. and Mr. Craig Weatherup, president of

PEPSI Cola Company. NEW DELHI OCT 20 : Ravi K. Jaipuria (RKJ) , ONE OF PEPSICO

India’s largest franchisee bottler , says that despite a slump in pepsi sales , he is going ahead with

capacityb expansion plans with an investments of RS. 100 crore over a period of next six

months.

26
 The investments will see setting up of two new plants through varun beverages

(a bottling company of RKJ and part of the RS. 1,200-CRORE Jaipuria Group) at bhilwdi &

jaipur in Rajasthan ands also a foray into the manufacturers of crowns and plastics shells for

glass bottles, RKG Chairman Ravi Jaipura Group collectively forms about 45% of Pepsi’s total

franchisee business.

According to Varun beverages president- finance Mr. R.P. Gandhi, the company is

spending Rs. 60 crore to set up a new bottling plant at Bhilwadi, Rajasthan, with an installment

capacity of 80 lakh cases. A 15 acre plot has already been acquired by te company and the plant

commissioned last month – is expected to come up y March 2004.

Additionally, the company plans to raise capacities at its Kosi Plant I UP by 30 Lakh cases,

pumping in an advertisement of Rs. 15 crore. As part its backward integration venture, Mr.

Jaipuria is setting up a new plant for manufacture of crowns and plastic sell at Ajmer Road,

Jaipur, with an investment of Rs. 250 crore.

27
 While admitting that Pepsi’s sales were hurt post-cola contamination controversy,

Mr. Jaipuria, however, maintained that “it was difficult to access wheather the slump was due to

the controversy or a lean monsoon. Weather has played a spolit sport, too, and the season has

been dull so we can’t really say whether sales has been hit by the pesticides issue alone,” he said,

adding that otherwise 2003 has been an excellent year for soft drinks sales.

With the new initiatives, the RKJ group which operates through two companies –

Varun Beverages & Devyani- Hopes to achieve a sales turn over of Rs. 600 crore by the end of

2004, and Rs. 720 crore by 2004. the company posted a sales turn over of Rs. 500 crore in 2002.

The RKJ group led Mr. Jaipuria has 7 pepsi bottling plants spread around the

country in Noida and Kosi(UP), Alwer & Jodhpur(Rajasthan), Goa, Dharwar(Karnataka) And

Kathmandu(Nepal). The total capacities at these unities is about 220 lakh cases as per year or

5000 bottles per minutes.

Decide the soft drink business, RKJ is also firmly entrenched in the foods &

education Business. Part of the Rs. 12000 crore Jaipuria group which has interested in the

diverse fields including pepsi , pizza hut (he’s the sole franchisee of pizza Hut in the north india)

and DPS schools .

.
28
 VISION
Being the best in everything we though and handle.

MISSION

Continuously excel to achieve and maintain leadership position in the chosen

businesses, and delight all stakeholders by making economic value addition in all corporate

functions.

29
 PEPSI BOTTLING PLANTS IN INDIA

1. Goa, Salcete

2. Karnataka, Dharwad

3. Rajasthan, Bhilwadi

4. Rajasthan, Jodhpur

5. Rajasthan, Alwar

6. Uttar Pradesh, Greater Noida

7. Uttar Pradesh, Kosi

8. Kathmandu, Nepal

9. Rajasthan, Jaipur

30
 MAJOR UNITS OF VBL

Kosi Kalan Nepal Bhiwadi Kolkata Jaipur Jodpur Noida

(U.P.) (Raj.) (Raj.) (Raj.)

31
BRAND AVAILABLE IN THE MARKET

Table-1

PEPSI Products

Table 1

Product Name / Package 200ml. 300ml. 500ml. 1Ltr. 1.5Ltr. 2Ltr.

Pepsi Yes Yes Yes No No Yes

Mirinda (Lemon) Yes Yes Yes No No Yes

Mirinda (Orange) Yes Yes Yes No No Yes

7-UP Yes Yes Yes No No Yes

Slice Yes Yes Yes No No Yes

Mountain Dew Yes Yes Yes No No Yes

Aquafina (Mineral Water) Yes Yes Yes No No Yes

Lehar Soda Yes Yes Yes No No Yes

32
 HISTORY
OF
COCA-COLA

33
HISTORY OF COCA-COLA

The Coca-cola company exists to benefit & refresh every one it touches. Founded in 1886,

company is the worlds leading manufacturers, marketer, & distributor of non alcoholic beverages

concentrates & syrups, used to produce nearly 400 beverages brands. Its corporate head Quarters are

in Atlanta, with local operation in over 200 countries around the worlds most widely recognised

brands. It is the single global competitor of Pepsico.

COCA-COLA INDIA:
After a 16 years absence, Coca-Cola returned to India in 1993. the company’s presence in India

was cemented in November that year in a deal that gave drink Coca-Cola ownership of the nation’s

top soft brands and bottling network. Coca-cola India has made significant investments to build and

continually improve its business in India, including new production facilities, waste water treatment

plants, distribution system and marketing equipment. During the past decade, the Coca-cola system

has invented mote than US$ 1 billion in India.

COCA-COLA PRODUCTS IN INDIA:

Leading Indian brands Thums Up, Limca, Maaza, Citra and Gold Spot join yhe company’s

international family of brands including Coca-cola, diet coke, Sprite and Fenta, plus the schweppens

product range.

34
BRAND AVAILABLE IN THE MARKET

Table-II

COCA-COLA Products

Table 2

Product Name / Package 200ml. 300ml. 500ml. 1Ltr. 1.5Ltr. 2Ltr.

Coca-Cola Yes Yes Yes No No Yes

Thums-up Yes Yes Yes No No Yes
Sprite Yes Yes Yes No No Yes

Limca Yes Yes Yes No No Yes

Mazza Yes Yes Yes No No Yes

Kinley (Mineral Water) No No Yes Yes No No

Kinley Soda No No Yes Yes No No

Coke No No Yes Yes No No

35
RIVALY OF PEPSICO WITH COCA-COLA:

Coke still outlets PEPSI in all most all areas of the worlds. Saudi Arabia and the

Canadian provinces of prince Edward island. New found land and Labrador, Ontario & Quebec

are some of few exceptions. By most accounts , coca – cola was India’s leading soft drink until

1977 when it left India after a new government order the company to turn over its secret formula

for coca – cola and dilute its sake in its Indian unit as required by the foreign exchange

regulation act (FERA) . in 1988 , pepsi gained entry to indid by creating o joint venture with the

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; pepsi bought out its partners and ended the joint venture in 1994. in 1993 ,

coca – cola returned in pursuance of India’s liberalization policy . [10] in 2005, coca – cola and

pepsi together held 95% market share of soft – drink sales in India . coca – cola India’s market

share was 60.9%. [11] other claim that due to rumors of the use of cocaine, coke was banned for

a long time in india & recently the ban was lifted, how ever, Pepsi has maintained a commanding

market share.

Pepsi had long be the drink of Canadian, Francophone & it continues to hold its

dominance by replying on local Quevecois celebrities (Specially Claude Meunier , of La Petite

Vie Fame) to sell its product. “Pepsi ” eventually became an offensive nick name for

Francophones viewed as a lower class by Anglophones in the middle of 20th centaury.

36
The termed is now used as a historical reference to Franch-English linguistic animosity (During

the partitionist debate surrounding in 1995 referendum, a pandit wrote, “And a wall will be

erected the along st-laurent street [the traditional devide between franch and english in montreal]

because some people were throwing coke bottel one way and Pepsi Bottles the other way”)

According to consumers’ reports, in 1970, the rivalry continued to heat up the market. Research

proved that the Pepsi is preferred over coke. The way that they prove this way by blind taste tests

that were conducted in stores. These test were called “challenge Booths”. The sales of Pepsi

started to climb, and Pepsi kicked of the “challenge” across the nation.

37
 SWOT
ANAL
YSIS

38
SWOT ANALYSIS

An analysis that include environmental analysis competitive analysis & analysis of

corporate strengths, weakness, threats & opportunities.

STRENGTHS:

1). Top management decides strategic planning and its implementation regarding the availability,

affordability of its brands.

2). Top management is very effective it take decisions on every aspects of business like social

responsibility , sales promotion , marketing , finance distribution etc.

3) company has goodwill among the public.

4) Effective distribution channels.

5) Effective advertisement Systems.

6) Company has automated plant for production.

39
WEAKNESSES:

1) The organization structure is not properly designed.

2) Demand of specific product are not fulfilled.

3) Mismanagement is distribution of advertising materials.

4) Quality of some product is not good like mirinda & lemon.

5) Sales representatives of company are not performing according there efficiency so sales

effected.

OPPORTUNITIES:

1) VBL must be fulfilled the demand of market with it Pepsi can increase its market share.

2) Company can capture more market share if it covers those areas where competitor has not

reach.

3) Company should consider on non user of cold drink.

4) Company can capture more market share when introduce 200 ml for children at

reasonable price.

40
 THREATS:

1). Company should maintain present market share.

2). Policy regarding the scheme should be transparent because it creating dissatisfaction among

the retail outlet holders.

3). Main competitor of Pepsi is Coke. Now a days coke is improving planning, strategies, & its

implementation. Company should also change the market strategies.

4). The forth coming market would be the market of consumer so the scheme must be consumer

oriented.

41
CHAPTER - 3

42
INTRODUCATION

OF THE TOPIC

43
 COMPARTIVE ANALYSIS OF PEPSICO & COCA-
COLA ON BRAND POSITIONING STRATEGIES

BRAND:

Brand the distinguishing proprietary name, symbol, or trademark that differentiates a particular
product, or service, from other of a similar nature

BRAND POSITIONING STRATEGIES:

.

1) Quality Positioning

Perception of quality is probably one of the most important elements for a brand to have and
can be combined with any of the other prompts below.

Quality or the perception of quality lies in the mind of the buyer. Build a powerful perception
of quality, and you will succeed in creating a powerful brand.

The 22 Immutable Laws of Brandis say the best way to increase perception of quality is to
narrow the company’s focused. When you narrow a product’s focus, they explain, you
become a specialist rather than a generalist, and a specialist is perceived to know more or be
of “higher quality” than a generalist.

Another way to build the perception of high quality is to simply attach a higher price tag to
your brand. More people think that they know a higher quality product from another but in
reality; things are not always as they seem.

44
Believe it or not, high price is a benefit to some customers. It allows the affluent consumer to
obtain psychological satisfaction from the public pirchase and consumption of a high end
product. Of course the product or service does need to have some perk or difference to justify
the higher price.

2. Value Positioning

Although at one time, items that were considered to be a good “value” meant that they were
inexpensive that stigma has fallen by the wayside. Today, brands that are considered a value
are rising in popularity amongst consumers.

3.) Feature Driven Positioning

More marketers rely on product/service features to differentiate their brands than any other
method. The advantage is that the message is clear, and the positioning will be credible if you
stick to the facts about the product.

Unfortunately, feature orientated stances are often rendered useless if the competition comes
out with a faster or more advanced model.

4.) Relational Positioning

One of the most effective ways to create interest in a brand is to send out a positioning
prompt that resonates well with potential buyers. For instance, sketches equate sneakers with
cool and that characteristic passes to all who wear them.

These brands have achieved positioning based on who buyes what they sell, not solely by
what they sell.

45
5.) Aspiration Positioning

These are positioning prompts that offer prospects a place they might like to go, or a person
they might like to be, or a stake of mind they might like to achieve.

6.) Problem/Solution Positioning

As the name implies, problem/solution prompts show the consumer how a sticky situation
can be relieved quickly and easily with the brand or service. What problem/solution
campaigns lack in imagination, they usually make up for in directness and credibility.

7.) Rivalry Based Positioning

By definition positioning deals with how one brand is thought of compared to its obvious
competitors. Therefore, the idea of a rivalry-based position might seem redundant but many
campaigns take this approach.

8.) Warm and Fuzzy Positioning

Underneath our capitalist driven needs to consume, we or still docile and emotional animals.
As such, many marketers play on our feelings.

How people feel about a brand is often times need or desire based which means that
emotional or psychological approaches can oftentimes be very effective as positioning
prompts.

9.) Benefit driven Positioning

Other brands base their entire positioning on the fact that they give back to the consumer.

46
CHAPTER - 4

47
RESEARCH

METHODOLY

48
RESEARCH METHODOLGY

Methodology is the most important part of such studies. The method of study adopted by me to

increase the knowledge and together more information regarding this project.

The major emphasis in such studies is on the discovery of ideas and fruitful relevant

information. As such the research design appropriate for such studies must be flexible enough to

provide opportunities for considering different aspects of a problem under study.

METHODS OF DATA COLLECTION:

1. PRIMARY DATA:

Survey Method – this method was adopted because it helped in securing detailed

information from a sample of respondents. The information received from the

respondent is recorded on a form called the questionnaire. This is only method to major

attitude and motivation directly.

Open framed discussion with managers.

49
 2. SECONDARY DATA:

I have also used the secondary data, which included the written document of the

sorganization and other places.

• HEAD OFFICE(VBL)

• INTERNETs

• PAPERS & RECORDS

The data collected from the above mentioned sources helped me in getting information about the

brief history of PEPSI Co.

SAMPLING PLAN:

Target population of the universe Retailers, Maholi Road, Bus stand, State

Bank Chouraha, Dholi pyaoo, Court area,

Aurangabad, Birla Mandir, Masani, Link

Road & Kacchi Sadak, Mathura(UP)

Sampling Size 1000
Sampling Method Simple random Sampling
Area of Survey Mathura Region

50
CHAPTER - 5

51
 ANALYSIS

&

INTERPRETATION

52
 FLAVOURS OF PEPSI
&
COCA-COLA
COMPARATIVELY

COLA FLAVOURS”

53
 Cola is a most popular flavor in any group of age. This is the most saleable flavor in the world.

Both PEPSICO & COCA-COLA has its own cola flavor. PEPSICO has a cola flavor named PEPSI

and cola flavor of COCA-COLA are THUMPS UP & COKE. PEPSI COLA is a cash cow brand for

the company in terms of sales revenue. PEPSI has two comparative brands in the cola flavor.

LIME & LEMON FLAVORS

54
This segment of flavor is very likely in the children and aged person . PEPSICO has three brands in

this segment with comparison to the brand of COAC – COLA . The PEPSI’S brand are

MOUNTAIN DEW, MIRINDA LEMON and 7UP whether the COCA COLA has its sprit &

LIMCA un this segment . MIRINDA LEMON is considered to be lemon in taste , comes under

the category of cloudy lemon of its color which is similar to that of clouds. It has to yield good

revenue. MOUNTAIN DEW is the sweet lemon soft drink in India and in a few countries. It is

mostly demands by the children.

7UP s lemon –lime soft drink. Sales of 7UP is third largest carbonated soft drink brand in U.S.

most consumers prefer 7up as a their favourite brand than any other non-cola.

“ ORANGE FLAVOURS”

55
 This is another type of flavour in the soft drink industry. The taste is like orange. In this

segment PEPSI has a brand named MIRINDA whether COCACOLA has its FANTA in orange .

this flavor is mostly preferred by children and women.

PEPSI:

COCA-COLA:

“MANGO FLAVOURS”

56
In this category’s of flavour is like a Mango. This flavour is now becoming more popular in India. In

Mango flavour PEPSI has a well known name SLICE whether COCACOLA has a MAZAA in

this segment.

PEPSI:

COCA-COLA:

NEW BRANDS LAUNCHED BY PEPSICO

57
7UP ICE :-
PEPSICO India recently launched a new flavour named “7UP ICE” IN Indian market. It is

hard that 7UP. The taste of 7UP ICE is mint.

MIRINDA BAT

PEPSICO is recently launched MIRINDA BAT BERRY. The taste of MIRINDA BAT

BERRY is like Glico din.

NEW BRANDS LAUNCHED BY COCACOLA

58
 SPRITE ICE

COCA-COLA India is recently launched “SPRITE ICE” in the competition of “7UP ICE” of

PEPSI. This is a newly kind of flavor ads by both of companies.

AREA WHERE SURVEY IS CONDUCTED

1. Bus Stand

59
2. Maholi Road

3. State Bank Chauraha

4. Dholi PiauS

5. Court Area

6. Orangabad

7. Birla Mandir

8. Link Road

9. Kachhi Sadak

10. Masani

ANALYSIS AND INTERPRETATION

A survey with sample size 100 is conducted on randomly basis in different parts

of Mathura to take the help in comparative analysis of PEPSI & COCACOLA.

60
 All the samples, which are selected, are the retailers/outlets of PEPSI and

.COCACOLA.

COMPARATIVE SALE IN “200 ML”

COMPARATIVE SALE IN 300 ML

The sale of pepsi in 300 ML is Greater than The coco cola.

Pepsi

Cocacola

COMPARATIVE SALES IN “500ML”

61
60

50

40

30
S
20

10

0
Pepsi
Series 1
Coco
Cola

COMPARATIVE SALES IN “2L TR”

62
 70
60

50
40
30
20
10
0
PEPSI

COCACOLA

The comparative sale of pepsi in 2 L TR is greater than the coco cola

COMPARATIVE SALES IN “CAN”

63
 60

50

40

30

20

10

PEPSI
COCO
COLA

EXTRA EFFORTS MADE BY RETAILERS TO SELL PEPSI

64
According to the survey conducted I fond that the retailers do not make some extra efforts to sell

PEPSI. The company should makes such promotion activities and motivate the retailers by any

means so that they should make some extra efforts to increase the sales of Mountain Dew.

65
CHAPTER - 6

66
 FINDINGS

FINDINGS OF CONSUMERS SURVEY

(SAMPLE SIZE 200)

67
Division of consumers according to :-

• Age group

Below 20 40%

41%

30.40 12%

Above 40 7%

• Gender

Male 70%

Female 30%

• Education

Under Graduate 38%

Graduate 34%

Post Graduate 15%

Professional 13%

• Profession:-

Student 56%

Service 22%

Business 18%

Any other 4%

• Frequency of consuming soft drink:-

68
 Daily 31%

Weekly 20%

Occasionally 46%

On any occasion 3%

• Reason for consuming soft Drink:-

Refreshing 65%

Hygienic 6%

Thrust 20%

Fizzy 9%

69
CHAPTER - 7

70
LIMITATIONS

&

CONCLUSTION

LIMITATION OF THE SYUDY

71
Responsible managers & personals in the marketing department of varun beverage Ltd. Provide

necessary assistance to me in “Comparative Analysis Of Pepsi & Coca Cola”. They discussed

different aspects & Function of marketing .as practical pepsico India Ltd (VBL). Almost all

necessary information was provided to me in the support of this project report.

How ever some problems , which can not escape from . the limitation faced , felt or expressed by me

are as follows-

• Due to lack of time (i.e. two months) it is not possible to reach all respondents.

• The lack of availability of time on the respondent’s part.

• Some respondent’s was biased.

• Unwillingness of the respondents.

I tried to overcome on these limitations.

72
 CONCLUSION

CONCLUSION OF THE STUDY

I have studied and analyzed the comparison of PEPSI & COCA COLA on different aspects of

the market , outlets , distribution & consumers . The survey was conducted in various areas of

73
Mathura city with great Enthusiasm. This project report concludes that PEPSI is much strong

than the COCA COLA and 100% is tough job & the most important Thing , which I feel to

improve , is “the availability to retailers & consumers”.

The retailers & consumers both promotes either PEPSI or any other of its brands

(e.g. Mountain Dew ) for could be with regard to order processing , ware housing , inventory

Management & Transportation , besides that shop covering , time of enter & exit from the

market by the sales man , cooling appliances, glow shine board , schemes , incentives , prizes ,

gifts , discounts , proper biling , returning of defective goods , proper supply should be

improved.

My objective was to make marketing managers aware of all the problems so that a

proper course of action is required to be undertaken. The only competitor of PEPSI is COCA –

COLA & no local brands can beat PEPSI.

74
CHAPTER - 8

75
 RECOMMENDATION
&

SUGGESTION

RECOMMENDATIONS & SUGGESTIONS

After copleting this report I find my self able to recommend Varun Beverages Ltd. To boost up

the sales of PEPSI & it’s other brands.

1) PRODUCT AWARENESS PROGRAMES FOR CONSUMERS & RETAILERS SHOULD

INCREASED

76
 A) For Retailers:-The company should organize seminars , but there must be

compulsion for Retailers to attend the seminars.

B) For Consumers:- The company should organize some more programmes in different

localities . Awareness programmes may help increases the market share of PEPSICO.

2)SUPERVISION ON THE DISTRIBUTION ROOTS IS REQUIRED

The main purpose behind this is that there should be time to time eye check on

salesmen’s efficiency & on top of that they are going to meet retailers directly.

3) PROMPT DELIVERY OF PRODUCTS

Prompt delivery of the product to the customers is very much necessary towards

enchancing the reputation of company & which is defining helpful in keeping the

customers.

77
 4) PEPSICO should keep sales engineers in various areas to provide technical support to the

outlets related to the cooling system.

5) The schemes & the other information are properly communicated to retailers so they are

better equipped to handle the quarries of customers properly.

6) Another problem is replacement i.e. any bottle has some defect than the salesman replace it

immediately.

7) There should be the time to time & proper survey of the market.

8) on extra sales upto some predetermined margins the sales force should paid extra

commissions & bonuses.

9) The should motivate its sales force to take the achievement higher than the targeted by

rewarding them properly.

78
CHAPTER - 9

79
 BIBLIOGRAPHY

BIBLIOGRAPHY

BOOKS

Kotler , Philip, Marketing Management : 12th Edition 2006

80
Kothari , C. R. , Research Methodology , 2e New Age International publisher

Gupta C. B. , Marketing Management , 8th e 2006 Sultan Chand & Sons

WEB SITES

http://www.pepsico.com/

http://www.pepsi.com/

81
CHAPTER-10

82
 ANNEXTURES

&

QUESTIONNAIRE

QUESTIONNAIRE
Name:……………………………………………………………………....

Contact person:……………………………………………………………..

83
  Kind of shop:

o Eatery

o Grocery

o Confectionary

o Others

 Which brand you purchase:

o Pepsi

o Coca-cola

o Both

 What kinds of strategies used by two companies.

o Rigid Strategies

o Unsatisfactory Non-aggressive

o Satisfactory

o Good

 Does Advertisement influence your decision for choosing a particular brand

o Yes

o No

o Can’t say

o 35 years & above

Customer preference depends upon:

o Brands

o Availability
84
 o Scheme

o Advertisements

 If customer preference depends upon scheme, then which

age group is mainly effected by

it:

o Below 15 yrs

o 15-25 yrs

o 25-35 yrs

o 35 yrs & above

Average monthly consumption of Pepsi & Coca-cola:

PEPSI

COCA-COLA

 Would you go for another brand away from the Pepsi & Coca Cola offer better product

and service?

o Yes

o No

o Uncertain

Do you make some extra efforts to sell/promote the PEPSI:

o Yes

o No

 Would you go for another brand away from the Pepsi & Coca Cola offer better product

and service?

85
 o Yes

o No

o Uncertain

 What category of customer does advertisement affect more?

o Male

o Female

o Children

 What is the peak time of sale of cold drinks?

o Summer

o Winter

o Rainy

o Spring

 Who is your target customers for brand positioning?

o Young

o Old

o Children

 On what basis they segment their population?

o Geographically

o Demographically

o Psychologically

 Which is most sale oriented brand positioningl stratigies?

86
 o Value positioning

o Quality positioning

o Relational positioning

 What method is used by two companies for their brand positioning?

o Customer oriented

o Competition oriented

o Cost oriented.

 Does brand positioning affect customer state of mind?

o Yes

o No

 Does Advertisement effect the customer decsition of buying cold drinks?

o Yes

o No

87
 Any suggestion to company

……………………………………………………………………………………………

……………………………………………………………………………………………

……………………………………………………………………………………………

…………………………………………………………….

88