A Summer Internship Project
A Summer Internship Project
PEPSI COLA
Vs
COCA COLA
A report submitted to Delhi Business School, New Delhi
As a part fulfillment of
MBA + Post graduate programme (Industry Integrated) in
Entrepreneurship and Business
Punjab Technical University
B- 11/58, M.C.I.E,
Mathura road, New Delhi
Website: www.dbs.edu.in
parative Analysis
Com
And Research –
Pepsi cola Vs Coca cola
Summer Internship Report
2
ACKNOWLEDGEMENT
Well to say this is my project would be totally untrue. At best this was
my dream. There are people in this world, some of them so wonderful,
that made this dream become a project. I would like to thank all of them,
and in particular:
MRS. Suman Suhag (internal faculty guide) and MRS. Sweta seth
(Program director)teacher cum mentor, they helped me right from the
beginning to the end of my project in every aspect,
Mr Shelesh and MRS. Taruna, Placement cell – After all without their
support I would have never got a chance to do my project in my dream
topic.
My friends and colleagues Wasim ,Prashant, Sandeep , Laleet,
Pawan,Vinod,Vikas and others that surround me, love me and make life fun
to reduce stress and tiredness.
And lastly, it is only when one writes and realizes the true power of MS
word 2007, from grammar checks to replace-alls. It is simple. And the
power of Windows XP the OS where MS Office is …. Thank you Mr. Bill
Gates and Microsoft Corp!
3
DECLARATION
DATE: SIGNATURE:
4
PREFACE
market.
experience. This has given a chance to try and apply the academic
The Project consists of our findings after data analysis & then
forward.
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Table of the CONTENT
Certificate…………………………………………………………..……..…………..2
Acknowledgement……..……………….………………………..…..……………3
Declaration……………..……………… ………………………..….……….……4
Preface……………………………………………………………………………..5
Table of the content………………………………………………………………6
Executive Summary………………… ..………………………………………….7
1.Introduction… ……………………....................................................................8
1.1. History of PEPSICO and COCA-COLA……………………….
………………….....9
1.2. Product of PEPSICO and COCA-COLA..……..
………………………………….…15
1.3. PEPSICO and COCA-COLA IN INDIA………………………………….
…...….….11
2. 2. Objective of
study………………………………………………………………………………
19
6
4.1. Research
Methodology………………………………………………………………..
4.3. Using of
data……………………………………………………………………………
…..
4.4. Statistical
tools…………………………………………………………………………
….
4.5. SWOT
analysis…………………………………………………………………..
…………32
4.7. Company
analysis……………………………………………………………………….
36
6. Limitations
Bibliography
Annexure
EXECUTIVE SUMMARY
PepsiCo is the world's premier consumer products company focused on
convenience food and beverages. We seek to produce healthy financial
reward to investors as we provide opportunities for growth and
enrichment to our employee
PepsiCo India and its partners have invested more than U.S. $1 billion
since the company was established in the country. PepsiCo provides
direct and indirect employment to 150,000 people including suppliers
and distributors
7
The group has built an expansive beverage and foods business. To
support its operations, PepsiCo has 43 bottling plants in India, of which
15 are company owned and 28 are franchisee owned. PepsiCo’s
business is based on its sustainability vision of making tomorrow better
than today. PepsiCo’s commitment to living by this vision every day is
visible in its contribution to the country, consumers and farmers.
8
INTRODUCTION
HISTORY OF ‘PEPSICO’
9
It was first introduced in North Carolina in 1898 by Caleb Bradham who
made it at his pharmacy which sold the drink which was known back
then as "Brad's Drink", and was later named Pepsi Cola possibly due
the digestive enzyme pepsin and kola nuts used in the recipe.
Bradham sought to create a fountain drink that was delicious and
would aid in digestion and boost energy.
Pepsi's success under Guth came while the Loft Candy business was
faltering. Since he had initially used Loft's finances and facilities to
establish the new Pepsi success, the near-bankrupt Loft Company sued
Guth for possession of the Pepsi-Cola company.
PEPSICO IN INDIA
PepsiCo entered India in 1989 and has grown to become one of
the country’s leading food and beverage companies. One of the largest
multinational investors in the country, PepsiCo has established a
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business which aims to serve the long term dynamic needs of
consumers in India.
PepsiCo India and its partners have invested more than U.S.$1 billion
since the company was established in the country. PepsiCo provides
direct and indirect employment to 150,000 people including suppliers
and distributors.
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The ad campaign has been Indianised with a lot money being spent on
advertising.
Brand has been kept alive by effective promotional schemes.
Coca Cola in the initial years of it’s incorporation had spent a lot of money on
advertising. Coke is the longest surviving sponsored of The Olympics. To reach at
this position advertising and effective event marketing have played a major role
for Coca Cola.
"To be the world's premier consumer Products Company focused on convenience
foods and beverages. We seek to produce healthy financial rewards to investors as
we provide opportunities for growth and enrichment to our employees, our
business partners and the communities in which we operate. And in everything we
do, we strive for honesty, fairness and integrity."
PepsiCo is a world leader in convenience foods and beverages, with 2007
revenues of more than $39 billion and more than 185,000 employees across the
world. Its world renowned brands are available in nearly 200 countries and
territories.
PepsiCo entered India in 1989 and has grown to become the country’s largest
selling food and beverage companies. One of the largest multinational investors in
the country, PepsiCo has established a business which aims to serve the long term
dynamic needs of consumers in India.
PepsiCo India and its partners have invested more than U.S.$700 million since the
company was established in the country in 1989. In India, PepsiCo provides direct
employment to 4,000 people and indirect employment to 60,000 people including
suppliers and distributors.
PepsiCo India’s expansive portfolio includes iconic refreshment beverages Pepsi,
7 UP, Mirinda and Mountain Dew, in addition to low calorie options– Diet Pepsi
and 7Up Light; hydrating and nutritional beverages such as Aquafina drinking
water, isotonic sports drinks - Gatorade, and 100% natural fruit juices and juice
based drinks – Tropicana,
Tropicana Twister and Slice. Our
local brands – Lehar Everess Soda,
Dukes Lemonade and Mangola
complete our diverse spectrum of
brands.
Pepsi has now opted for a new brand ambassador, Katrina Kaif.
"The creative thought behind the new communication was to
further enhance the Slice experience into dimensions of
pleasure, sensuality and indulgence. Last year's commercial was
about enumerating the principles of 'Aamsutra' - the art of
experiencing pure mango pleasure - with the new Slice. This
year, the commercial portrays the next level to bring alive the
mango indulgence," stated Hari Krishnan, vice president, JWT -
the agency responsible for Slice's campaign.
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following 4 critical areas that have a business link and where we
believe that we can have the most impact.
HISTORY OF ‘COCA-COLA’
The first Coca-Cola recipe was invented in a drugstore in Columbus,
Geogia by John Pemnerton, originally as a coca wine called
Pemnerton’s frensh Wine Cola in 1885. He may have been inspired by
the formidable success of Vin Mariani, a European coca wine.
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In 1892 Candler incorporated a second company, The Coca-Cola
Company (the current corporation), and in 1910 Candler had the
earliest records of the company burned, further obscuring its legal
origins. By the time of its 50th anniversary, the drink had reached the
status of a national icon for the USA. In 1935, it was certified Kosher by
Rabbi Tobias Geffen, after the company made minor changes in the
sourcing of some ingredients.
Coca-Cola was sold in bottles for the first time on March 12, 1894. The
first outdoor wall advertisement was painted in the same year as well
in Cartesville, Georgia. Cans of Coke first appeared in 1955. The first
bottling of Coca-Cola occurred in Vicksburg, Mississippi, at the
Biedenharn Candy Company in 1891. Its proprietor was Joseph A.
Biedenharn. The original bottles were Biedenharn bottles, very
different from the much later hobble-skirt design that is now so
familiar. Asa Candler was tentative about bottling the drink, but two
entrepreneurs from Chattanooga, Tennessee, Benjamin F. Thomas and
Joseph B. Whitehead, proposed the idea and were so persuasive that
Candler signed a contract giving them control of the procedure for only
one dollar. Candler never collected his dollar, but in 1899 Chattanooga
became the site of the first Coca-Cola bottling company. The loosely
termed contract proved to be problematic for the company for decades
to come. Legal matters were not helped by the decision of the bottlers
to subcontract to other companies, effectively becoming parent
bottlers.
New Coke
On April 23, 1985, Coca-Cola, amid much publicity, attempted to
change the formula of the drink with "New Coke". Follow-up taste tests
revealed that most consumers preferred the taste of New Coke to both
Coke and Pepsi, but Coca-Cola management was unprepared for the
public's nostalgia for the old drink, leading to a backlash. The company
gave in to protests and returned to the old formula under the name
Coca-Cola Classic on July 10, 1985.
21st century
15
same sweetener currently used in Pepsi One. On March 21, 2005, it
announced another diet product, "Coca-Cola Zero", sweetened partly
with a blend of aspartame and acesulfame potassium. Recently Coca-
Cola has begun to sell a new "healthy soda": Diet Coke with vitamins
B6, B12, Magnesium, Niacin, and Zinc, marketed as "Diet Coke Plus."
PRODUCT’S PROFILE
PRODUCT
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1. PEPSI 1. COKE
2. MIRINDA 2. THUMS-
UP
3. MIRINDA LEMON 3. SPRITE
6. SLICE 6. MAZZA
7. 7 UP 7. KINLEY
8. AQUAFINA
DELHI MARKET
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Franchisee Manager (FM)
MARKET OF PEPSI
PEPSICO IN DELHI
18
DISTRIBUTOR OF THE DIRECT SUPPLY OR
AREA ROOT AGENT
MARKET OF COCA-COLA
Delhi is a metro city and it is the capital of India. In Delhi there are
more than one lake soft drink outlets. Coca-Cola cover all the
outlets through their distribution channel for supply.. In Coca-Cola
all the management work done by Gurgoan office and all the Delhi
is divide into three major area Hindustan drinks private
limited(HDPL) , City drinks limited(CDL) and Varun drinks private
Ltd. (VDPL) for the distribution of Cola-Cola
COCA-COLA IN
DELHI
19
HINDUSTAN DRINKS CITY DRINKS VARUN DRINKS
PRIVATE LIMITED LIMITED LIMITED
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OBJECTIVE
OF
21
THE STUDY
22
PEPSICO coca-cola
Coca-Cola
Type Cola
Manufacturer PepsiCo.
Type Cola
Country of origin United States
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Comparison
Between
Sales and distribution
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CHANNEL TYPE
In the channel type we find which type of shop is there like grocery shop,
eatery shop, convenience
Grocery 450
Eatery 86
Convenience 785
25
Distribution Services
In the distribution services we find, the shop keeper how get the PepsiCo
and coke. Like direct supply by the company, by the wholesaler, by the
distributor, by the presale order.
1. Direct service-476
2. Distributor-214
3. Presale-786
4. Wholesaler-557
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Distribution of visi (Freeze)
1. Visi of Pepsi
2. Visi of coke
3. Own freeze
27
Demand of product of pepsi
In the PepsiCo, There are eight product in the Brewage industry in Delhi.
Like Pepsi, Mirinda, 7up,
Mirinda Lemon, Mountain Dew, Nimbooz, Slice, Aquafina
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DEMAND OF PRODUCT OF COCA-COLA
In the Coca-Cola, There are seven product is going on in the market in the
brewage industry. Like coke, Thumps-up, Sprite, Limca, Maaza, Fenta,
kinley Water.
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OVERALL MARKET SHARE OF PEPSI AND
COKE
PepsiCo 57%
Coca-cola 43%
30
LEVEL OF SATISFACTION
I have survey of more than 1500 outlets in Delhi. I found that level of
satisfaction of customer and need of customer. Which services they wants ,
which product they like, which schemes they preferred , those who are not
interested in Pepsico and or coca cola, pepsi monopoly market and coke
monopoly market, whose who are ready to sell the soft drinks but they do
not get it, those who are satisfied customer etc.
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PEPSI COKE
MARKET SHARE 57% 43%
32
SATISFIED 42% 58%
SERVICE PROBLEM 35% 65%
SCHEME PROBLEM 38% 62%
VISI PROBLEM 58% 42%
SUPPLY PROBEM 71% 29%
MONOPOLY MARKET 55% 45%
DEMAND OF PRODUCT 59% 41%
PRODUCT QUALITY 45% 55%
WHOLESALER MARKET 80% 20%
Methodology
33
And
Analysis
REASEARCH METHODOLOGY
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research often concludes that a perceived problem does not actually
exist.
Exploratory research often relies on secondary research such as
reviewing available literature and/or data, or qualitative approaches
such as informal discussions with consumers, employees, management
or competitors, and more formal approaches through in-depth
interviews, focus groups, projective methods, case studies or pilot
studies. The Internet allows for research methods that are more
interactive in nature: E.g., RSS feeds efficiently supply researchers with
up-to-date information; major search engine search results may be
sent by email to researchers by services such as Google Alerts;
comprehensive search results are tracked over lengthy periods of time
by services such as Google Trends; and Web sites may be created to
attract worldwide feedback on any subject.
The results of exploratory research are not usually useful for decision-
making by themselves, but they can provide significant insight into a
given situation. Although the results of qualitative research can give
some indication as to the "why", "how" and "when" something occurs,
it cannot tell us "how often" or "how many."Exploratory research is not
typically generalizable to the population at large.
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Quantitative data may often be presented in tabular or graphical form.
Secondary data is data that has already been collected by someone
else for a different purpose to yours.
Survey:
surveys are used to collect quantitative information about items in a
population. Surveys of human populations and institutions are common
in political polling and government, health, social science and
marketing research. A survey may focus on opinions or factual
information depending on its purpose, and many surveys involve
administering questions to individuals. When the questions are
administered by a researcher, the survey is called a structured
interview or a researcher-administered survey. When the questions are
administered by the respondent, the survey is referred to as a
questionnaire or a self-administered survey.
In Secondary Data:
Search Engines
Wikipedia & Encyclopedia
Google
WWW.pepsiindia.com
WWW.cokeindia.com
Correlation coefficient
Year Production Market Production Market
of share of of share of
Pepsico(in pepsico Coca-cola(in Coca –cola
cr.) cr.)
2000 100 43% 115 57%
2001 102 47% 112 53%
2002 104 44% 113 46%
2003 107 42% 111 58%
2004 105 48% 112 52%
2005 112 51% 112 49%
2006 103 58% 119 42%
2007 99 55% 126 45%
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2008 96 57% 123 43%
2009 95 58% 121 42%
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SWOT ANALYSIS OF PEPSICO
OPPORTUNITY THREAT
NIMBOOZ IS A GOOD OPTION COMPETITOR (COCA-COLA, RC,
FOR LIMCA CITY)
OFFICIAL SPONCERSHIP FOR LIMCA
COMMON WEALTH GAMES AND WHOLESALER
ICC WORLD CUP-2011, OLYMPIC CONSISTENT IN TEST
GAMES-2011 CHANGE DEMAND
EXPEND THE MARKET IN TY
AREA
ATTRACTIVE SCHEMES
NUMBER OF RETAIL COMPANIES
ARE COMING IN INDIA LIKE
WOLL-MART
INCREASE NUMBER OF
DISTRIBUTORS
INCREASE NUMBER OF VISI AND
CREAT PEPSI MONOPOLY
MARKET
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BIG BRAND NAME IN INDIA AND SUPPLY IS WEAK IN HDL AREA
ABROAD
SCHEMES IS A BIG ISSUE
OUTSTANDING REPOTATION
COMMUNICATION GAP BETWEEN
BRODER PRODUCT LINE DISTRIBUTOR AND RETAILOR
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EXPEND THE MARKET IN ALL
AREA
ATTRACTIVE SCHEMES
NUMBER OF RETAIL COMPANIES
ARE COMING IN INDIA LIKE
WOLL-MART
INCREASE NUMBER OF
DISTRIBUTORS
INCREASE NUMBER OF VISI AND
CREAT COKE MONOPOLY
MARKET
Area wise
Analysis
41
ANALYSIS OF TUGALAKABAD EXT.
GOOD MARKET SHARE OF PEPSI
OVERALL MARKET SHARE OF PEPSI IS 63%
ALL THE MARKET CAPTURED BY WHOLESALER
WHOLESALSER CHANGE LOW PRICES AS COMPARE TO
DISTRIBUTOR THAT’S WHY DEMAND IS HIGH OF PEPSI
DISTRIBUTOR AND CE PROBLEM IN PEPSI AND COKE
13 VISI OF PEPSI AND 7 VISI OF COKE IN 300 OUTLETS
NO SUPPLY BY DISTRIBUTOR PEPSI AND COKE
DUPLICACY OF PEPSI
LARGE MARKET AND DEMAND IS HIGH
SUPPLY IS THE MAJOR PROBLEM
SCHEME ISSUE
REPOTATION IS NOT GOOD
ROOT AGENT IS NOT WOKING PROPERLY
IT MAY BE A GOOD OPPORTUNITY FOR BOTH PEPSI AS WELL AS
COKE
83% SHOPKEEPERS IS NOT SATISFIED WITH SERVICE OF BOTH
PRODUCT
65% SHOPKEEPERS IS FACING SCHEMES PROBLEM
DEMAND IS HIGH OF PEPSI , MIRINDA AND LIMCA.
EXPIRY STORE IS AVAILABLE IN THIS MARKET OF PEPSI
DIFFERENT TEST IN SAME PRODUCT
CONSISTENCY PROBLEM
DEMAND IS HIGH OF NIMBOOZ BUT THERE IS NO SUPPLY
ANALYSIS OF NAJAFGARH
GOOD MARKET IN MY SERVEY FOR PEPSI
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OVERALL MARKET SHARE 68% OF PEPSI AND 32% OF COKE
80% RETAILOR IS SATISFIED FROM PEPSI
12% RETAILOR IS SATISFIED FROM COKE
11% PEPSI MONOLOPY AND 2% COKE MONOPOLY MARKET
ALL THE MARKET IS COVERED BY DISTRIBUTOR IN PEPSI AND
COKE
DEMAND IS HIGH FOR THE PEPSI, MIRINDA AND LIMCA
21% AVAILABILITY IF VISI OF PEPSI AND 9% AVAILABILITY OF VISI
OF COKE IN THE MARKET
GOOD RELATIOAN BETWEEN CE DISTRIBUTOR AND RETAILOR
IN PEPSI BUT NOT IN COKE
REQUIRED ADVERTISEMENT
SCHEMES ISSUE
SERVICE IS MAJOR PROBLEM WITH COKE
DISTRIBUTOR AND CE IS NOT WORKING PROPERLY IN COKE
GOOD REPOTATAON OF PEPSI IN THIS MARKET
SUPPLY IS TOO GOOD IN PEPSI
DEMAND FOR NIMBOOZ AND LIMCA IS HIGH BUT SUPPLY IS NOT
THERE PROPERLY
IT IS A VERY LARGE MARKET ,THERE ARE MORE THAN 1000
SHOPS,
43
SCHEMES PROBLEM
SUPPLY AND STOCK PROBLEM IN PEPSI
85% MARKET IS COVERD BY THE WHOLESALER IN PEPSI AND
COKE AND 52% MARKET IS COVERED BY THE DISTRIBUTOR IN
COKE
LECKAGE PROBLEM IN PEPSI
MARKET IS NOT VISITED BY THE CE AND DISTRIBUTOR IN PEPSI
GOOD REPOTATION IN THE MARKET FOR COKE
45% SHOPKEEPER IS SATISFIED WITH COKE AND 12% SATISFIED
WITH PEPSI
Suggestions
And
Recommendations
44
Suggestions AND RECOMMENDATIONS
CONCLUSION
RECOMMENDATIONS
PEPSI, the choice of youth is not providing the first choice of
young generation. Youth want something strong in cold drinks &
45
thus prefers strong taste. Pepsi should come out with some extra
strong taste to catch up maximum young generation & to
become exactly Generation Next drink.
LIMITATIONS
Findings are based on the views expressed by the consumers. So
it may suffer from biased prejudices.
Weather conditions were not favorable.
Some of the respondents were not co-operative & many seem to
be having no interest.
The study has not been intended on a very large scale, have the
possibility of errors, which cannot be ruled out.
46
Time limitations.
Area was specified.
I had lack of knowledge about the product of the local market.
The sample size was very short for this kind of marketing survey
Money Limitation was over there.
BIBLIOGRAPHY
WEBSITES:
www.pepsi.com
www.pepsicoindia,com
www.cocacola.com
www.cocacolaindia.com
www.wikipedia.com
www.encyclopedia.com
BOOKS:
Research Methodology- C.R.Kothari
Marketing Research- B. S. Bedi
Principles of Marketing- P. Kotler & Armstrong
47
Annexure
REMARK 2:-……………………………………………………………………………
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