Minor Project File
Minor Project File
FULFILLMENT
TOWARDS
ON
COMPARATIVE STUDY ON MARKETING STRATEGIES OF COCA
COLA & PEPSI
Batch: 2022-2025
This is to certify that the project work “Comparative study on marketing strategies of coca
cola and Pepsi” made by Devansh Sugla, BBA, 02520601722 is an authentic work carried
out by his/her under the guidance and supervision of Ms Shruti.
The project report submitted has been found satisfactory for the partial fulfilment of the degree
of Bachelor of Business Administration.
Project Supervisor
Signature
Name
ACKNOWLEDGEMENT
They have provided me with valuable guidance, sustained efforts, and a friendly approach. It
would have been difficult to achieve the results in such a short span of time without their help.
I deem it my duty to record my gratitude towards the Ms Shruti, who devoted her precious
time to interact, guide, and gave me the right approach to accomplish the task and also helped
me to enhance my knowledge and understanding of the project.
Signature:
Course: BBA
I hereby declare that the following documented Project report titled “COMPARATIVE
STUDY ON MARKETING STRATEGIES OF COCA COLA AND PEPSI” is an original
and authentic work done by me for the partial fulfilment of the Bachelor of Business
Administration degree program.
I hereby certify that all the Endeavour put in the fulfilment of the task are genuine and original
to the best of my knowledge & I have not submitted it earlier elsewhere.
Signature:
1. Chapter-1 6-11
➢ Introduction & Objective
2. Chapter-2 12-24
➢ Literature Review
➢ SWOT Analysis
➢ Proposed Research Design
3. Chapter-3 25-39
➢ Data Analysis with statistical tools
4. Findings 40
5. Limitations 41
6. Suggestions & Recommendations 42
7. Conclusion 43
8. Bibliography 44
9. Annexure 45-46
CHAPTER 1
INTRODUCTION
It all began in 1886, when a tree legged brass kettle in Hohn Stith Pemberton’s backyard in
Atlanta was brewing the first P of marketing legged. Unaware the pharmacist has given birth
to a caramel-coloured syrup, which is now the chief ingredient of the world's favourite drink.
The syrup combined with carbonated the soft drink market. It is estimated that this drink is
served more than one thousand million times in a day. Equally oblivious to the historic value
of his actions was Frank Ix. Robinson, his partner and book keeper. Pemberton & Robinson
laid the first foundation of this beverage when an average nine drinks per day to begin with,
upping volumes as sales grew. In 1894, this beverage got into bottle, courtesy a candy merchant
from Mississippi. By the 1950's Colas were daily consumption items, stored in house hold
fridges. Soon were born other non- cola variants of this product like orange & Lemon. Now,
the soft drink industry has been dominated by two major player (1) The New York based Pepsi
co. Inc. (2) The Atlanta based Coca Cola co. Though out the glove these major players have
been battling it out for a bigger chunk of the ever-growing cold drink market. Now this battle
has begun in India too. India is now the part of cold drink war. Gone are days of Ramesh
Chauhan, India’s one time cola king and his bouts of pistol shooting. Expect now to hear the
boon of cannons when the Coca Cola & Pepsi co. battle it out for, as the Jordon goes a bigger
share of throat. By buying over local competition, the two American Cola giants have cleared
up the arena and are packing all their power behind building the Indian franchisee of their globe
girdling brands. The huge amount invested in fracture has never been seen before. Both players
seen an enormous potential in his country where swigging a carbonated beverage is still
considered a treat, virtually a luxury. Consequently, by world standards India’s per capita
consumption of cold drinks as going by survey results is rock bottom, less than over
Neighbours Pakistan & Bangladesh, where it is four times as much.
Behind the hype, in an effort invisible to consumer Pepsi pumps in Rs 3000 corers (1994) to
add muscle to its infrastructure in bottling and distribution. This is apart from money that
company’s franchised bottles spend in upgrading their plants all this has contributed to
substantial gains in the market. In colas, Pepsi is already market leader and in certain cities like
Gorakhpur, Pepsi outlets are on one side & all the other colas put together on the other. While
Coca Cola executive scruff at Pepsi’s claims as well as targets, industry observers are of the
view that Pepsi has definitely stolen a march over its competitor Coca Cola. Apart from
numbers, Pepsi has made qualitative gains. The foremost is its image. This image turnaround
is no small achievements, considering that since it was established in 1989, taking the hardship
route prior to liberalization and weighed down by export commitments. Now, at present as
there are two major players Coca Cola & Pepsi and there is stiff competition between the two,
both Pepsi and Coca Cola have started, sponsoring local events and staging frequent consumer
promotion campaigns. As the mega event of this century has started, and the marketers are
using this event world cup football, cricket events and many more other events. Like Pepsi,
Coca Cola is picking up equity in its bottles to guarantee their financial support; one side Coca
Cola is trying to increase its popularity through
Eat Food, enjoy Food. Drink only Coca Cola. Eat cricket, sleep cricket. Drink only Coca Cola.
Eat movies, sleep movies. Drink only Coca Cola.
On the other side of coin Pepsi has introduced AMITABH BACHHAN for capturing the
lemon market through MIRINDA - Lemon with
Coca-Cola has diversified its portfolio over the years, introducing new flavours, low-
calorie and zero-sugar variants, and other beverages such as Fanta, Sprite, and Minute
Maid.
Coca-Cola is also known for its iconic advertising
campaigns, such as the polar bears, the "Share a Coke"
initiative, and the "Holidays are Coming" trucks.
In 1893, Pepsi – or Brad’s Drink was created and developed by Caleb Bradham in his
drug store in New Bern, North Carolina, United States, where the drink was later sold.
It was renamed Pepsi-Cola on August 28, 1898, due to two of the ingredients used in
the recipe, which were pepsin and kola nuts.
The slogan for the advertisement campaign was “Delicious and Healthful,” which was
used for over 20 years.
History of PepsiCo
• PepsiCo is the 18th largest American Company with its worldwide operations in 190
countries. The company employees over half a million persons and is possibly the
largest employer.
• PepsiCo started its operations in India in 1989 with the formation of Pepsi Foods
Limited. All of Pepsi’s businesses are employment intensive. PepsiCo employs ‟over
35,000 persons directly and indirectly in its beverage business and other operations.
➢ 28 bottling plants and new projects are combing up in West Bengal, Karnataka,
Rajasthan, Gujrat and Maharashtra. In May 1990, Pepsi was launched in Jaipur.
Pepsi broke its advertising campaign
“Are you ready for the magic”
featuring Remo Fernandes and Juhi Chawla on 15th August 1990. Since then, this
magic has won millions of Indian hearts. Starting from a Zero-base, Pepsi, today, enjoys
a leadership in Cola category. The company’s beverage brands are ‟Pepsi, Seven Up,
Mirinda Lemon, Mirinda Orange and Slice. It also has Dukes, lemonade, and Dukes
Soda. The snack foods are Ruffles, Cheetos and Lehar Namkeen. Pepsi services
all retailers at least thrice a week and in summer, very often, twice a day.
On April 23, 1985, the trade secret “New Coke” formula was launched in response to
declining sales thanks to an increasingly competitive cola market. However, the new
recipe was considered a failure. Coca-Cola fans had a negative, some say hostile,
reaction to the new recipe, and within three months, the original cola that captured the
hearts and tastebuds of the public returned. The return of the original cola taste came
with new branding of Coca-Cola Classic. New Coke remained on the shelves, and in
1992 was rebranded Coke II, before finally being discontinued in 2002.
CHAPTER 2
LITERATURE REVIEW
Carbonated soft drinks belong to the non-alcoholic beverage industry. Depending on the
region, they are also well-known as soda, pop, or carbonated beverages, and cover drinks
containing water, sugar or a type of artificial sweetener, and a flavouring agent. Those fizzy
drinks are mostly available in regular and diet varieties. A broader definition of soft drinks may
additionally include non-alcoholic ready-to-drink beverages such as juice, bottled water,
functional drinks (sports and energy drinks), and coffee and tea (hot and iced).
Multinational companies facing the high competition in the soft drink market comprise The
Coca-Cola Corporation, Pepsi-Co. Inc. and Dr Pepper Snapple. In this segment, The Coca-Cola
Corporation and PepsiCo have been long-term competitors for ages. PepsiCo always has to
face the so-called ’Pepsi challenge’ as rivalling with Coca-Cola. The ‘Pepsi challenge’
originally was set up as a taste experiment. Consumers were invited to degust beverages out of
two blank cups – one filled with Pepsi Cola and one containing Coca-Cola. Consumers were
then asked to evaluate the taste of these two drinks and to make a choice which one of them
they would prefer. The blind test let most Americans surprisingly learn that they would prefer
Pepsi Cola over Coca-Cola, only guided by taste.
Research on PepsiCo's net revenue worldwide 2007-2022
(Published by M. Ridder, Mar 30, 2023)
PepsiCo is an American food and beverage corporation, based in Purchase, NY. Famous
company beverage brands include Pepsi and Mountain Dew. PepsiCo has increased its global
net revenues from 39.47 billion U.S. dollars in 2007 to nearly 80 billion U.S. dollars in 2021.
Caleb Bradham developed the recipe for the Pepsi soft drink in 1880 in North Carolina. As his
drink became more popular, he established the Pepsi-Cola Company in 1902. In 1965, the
Pepsi-Cola company merged with Frito-Lay Inc., to form PepsiCo, Inc. Currently, the company
owns a variety of well-known brands that with about 60 percent dedicated to food products and
about 40 percent to drink products. PepsiCo is divided into seven main divisions. As of 2021,
over half of the company’s revenues were generated from the North American Beverages
(NAB) and Frito-Lay North America (FLNA) divisions.
Many are familiar with the competition between PepsiCo and Coca-Cola, named the “cola
wars”, but lately, both companies have started to depend on businesses outside of the beverage
market. Recently, the industry is responding to changes in the market as the demand for
carbonated soft drinks has decreased. However, studies have indicated that few people can
discern the difference between the two soft drinks in a blind taste test, nevertheless, there have
been indications that Coca-Cola has been more successful in its branding.
The Coca-Cola Company operates in the non-alcoholic beverage market and is well-known for
its billion-dollar soft drink, Coca-Cola. As of December 31, 2022, the company, which was
founded in 1892, employed about 82,500 associates worldwide. The global operating firm
consists of an Atlanta-based corporate division, and about 300 bottling partners worldwide.
The product range of Coca-Cola comprises non-alcoholic beverages such as soft drinks, bottled
water, sports drinks and energy drinks. The company’s most popular soft drink is certainly the
soft drink Coca-Cola. Brand rankings list the brand, for good reasons, as one of the most
valuable and recognizable brands worldwide. The history of Coca-Cola began in 1886 when
Atlanta pharmacist Dr. John S. Pemberton created a flavoured syrup with a distinctive taste
which could be sold at soda fountains by mixing the two components together. The secret
formula, which originated in the United States, is still used today for producing Coca-Cola.
People, who visit Atlanta, may take a tour through the World of Coca-Cola, where the company
gives additional information on the company’s famous history and their beverages which are
sold around the world today. In Coca-Cola’s latest annual report, the company states that the
North American segment accounted for about 36.7 percent of global revenue in 2018.
The company spent 193 million dollars advertising its flagship brand, Coke, in 2021, more
than any other non-alcoholic beverage brand in the United States in that year. Coca-Cola has a
long history of innovative and appealing advertising campaigns, going back to art done by
American painter Norman Rockwell, to the iconic polar bears of Christmas advertising.
The Coca-Cola brand’s image is not only maintained through traditional advertising mediums
but social media as well. It ranked fifth on Facebook, in terms of fans, as of January 2023, with
almost 107 million fans. Coca-Cola’s YouTube channel was equally popular with roughly 3.28
billion views accrued by the channel.
PepsiCo, Inc. is an U.S. food, snack and beverage company based in Purchase, New York. The
corporation specializes in the manufacturing, marketing and distribution of snacks, beverages
and other food products. PepsiCo was launched following the merger of Pepsi-Cola and Frito-
Lay. Pepsi-Cola was founded by Caleb Bradham during the late 1890s, while Frito-Lay, Inc.
resulted from the 1961 merger of the Frito Company and the H.W. Lay Company. PepsiCo
acquired Tropicana Products from Seagram Company Ltd. in 1998, the largest acquisition the
firm has ever undertaken, and merged with The Quaker Oats Company in 2001.
PepsiCo’s wide portfolio includes 22 brands, each generating over one billion U.S. dollars in
annual retail sales. For instance, Pepsi is one of the most popular global consumer brands and
the North America Beverages segment accounted for one-third of PepsiCo’s net
revenue worldwide in 2020. Furthermore, PepsiCo held the largest share of the global
sports/energy drink market that year. Gatorade, the leading U.S. sports drink, is also owned by
PepsiCo. Frito-Lay’s flagship brands, Lay’s potato chips and Fritos corn chips remain
favourites among U.S. consumers. In 2021, Frito-Lay was the leading vendor of potato chips in
the United States, based on sales of more than four billion U.S. dollars.
PepsiCo’s global workforce has grown from 19,000 people in 1965 to 309,000 people fifty-
five years later. The company had approximately 110,000 employees in the United States in
2015.
Strength Weakness
Opportunities Threats
COCA COLA
1. Strong brand identity – Coca-Cola is a highly popular brand with a unique brand
identity. Its soft drinks are the most-selling drinks in history.
3. Extended global reach – It is sold in more than 200 countries with 1.9 billion servings
per day of Company products. It has introduced more than 500 new products globally.
Some of these are variations of Coca-Cola beverage, like Coco Cola Vanilla and Cherry
Coca-Cola. Its brands are known to touch every lifestyle and demography.
4. Greatest brand association and customer loyalty – Coca-Cola is considered one of US’s
most emotionally-connected brands. This valuable brand is associated with ‘happiness’
and has strong customer loyalty. Customers can quickly identify their particular taste.
Finding its substitutes is difficult for them.
5. Dominant market share – Out of Coca-Cola and Pepsi, the only two largest
manufacturers of soft drinks in the beverage segment, Coca-Cola has the largest market
share. Coke, Sprite, Diet Coke, Fanta, Limca, and Maaza are the highest growth drivers
for Coca-Cola.
1. Aggressive competition with Pepsi – Pepsi is the biggest rival of Coca-Cola. Had it not
been Pepsi, Coca-Cola would have been the clear market leader in the beverage.
2. Product diversification – Coca-Cola has low product diversification. Where Pepsi has
launched many snacks items like Lays and Kurkure, Coca-Cola is lagging in this
segment. It gives Pepsi leverage over Coca-Cola.
3. Health concerns –Carbonated drinks are one of the major sources of sugar intake. It
results in two grave health issues – obesity and diabetes. Coca-Cola is the biggest
manufacturer of carbonated beverages. Many health experts have prohibited the use of
these soft drinks. It is a controversial issue for the company. However, Coca-Cola
hasn’t devised any health alternative or solution for this problem yet.
5. Environmentally Destructive Packaging – In the 2020 Tearfund report, Coca Cola was
named as one of the four world’s largest consumer brands that are contributing
immensely to global warming and carbon emissions by using throwaway plastic
bottles.
2. Increase presence in developing nations – Many regions with hot climate have the
highest consumption for cold drinks. Thus, increasing presence in such emerging
markets can be excellent – Middle Eastern and African countries are a good example.
3. Bring advanced supply chain system – Coca Cola’s business is entirely dependent upon
logistics and supply chain. Transportation costs and fuel prices are always on the rise.
Thus, coming up with some advanced and improved systems for distribution can be an
opportunity.
4. Packaged drinking water – Coca-Cola owns several packaged drinking water brands
like Kinley. There is a great potential for expansion in this segment for Coca-Cola.
There is an opportunity to expand and bring more healthy drinks in the market to avoid
people’s criticism.
2. Pollution Lawsuit – Coke and three other companies are being sued by a California
environmental group for contributing to plastic pollution
3. Direct and indirect competition – Although direct competition from Pepsi is clear in the
market, however, there are many other companies which are indirectly competing with
Coca-Cola. Starbucks, Costa Coffee, Tropicana, Lipton juices, and Nescafe, are the
indirect competitors of Coca-Cola, which can threaten its market position.
PEPSI
1. Popularity: PepsiCo is one of the most famous companies in the world. It has 23 brands
that generate more than $1 billion each in estimated annual retail sales.
2. Wider customer base: PepsiCo operates in more than 200 countries and territories
around the world. Its products are consumed more than one billion times a day! This
clearly demonstrates how far deep the company has already reached. It should be
mentioned that it generated more than $67 billion in net revenue in 2019.
3. Smoother distribution channels: PepsiCo has three distribution channels i.e. direct store
delivery (or DSD), customer warehouse, and third-party distributor networks. These
channels enable the company to deliver its products even in remote areas based on
customer needs. As PepsiCo is one of the largest non-alcoholic beverage makers in the
world, retailers are often more than happy to offer it major shelf space. This helps
PepsiCo increase its visibility and presence and influence consumer purchase decisions
effectively.
4. Variety of products: PepsiCo has a broad and strong range of product mix that has
enabled the company to achieve competitive advantages over many of its competitors.
Pepsi, 7Up, Mirinda, Doritos, Quaker, Walkers, and Tropicana are some of the most
famous members of the PepsiCo family.
5. Strategic planning: PepsiCo has made a number of acquisitions over the years. For
instance, it purchased Tropicana Products in 1998 and merged with Quaker Oats
Company in 2001. It is worth mentioning that the Pepsi-Cola Company merged with
Frito-Lay, Inc. in 1965 to become what is known today as PepsiCo.
1. Health issues: Many people often perceive soft drinks as unhealthy. This is not only a
perception but also supported by research. For instance, according to research
conducted in the USA as reported by the British newspaper ‘the Daily Mail’, people
who drink more than one fizzy soft drink a day are up to 60 per cent more likely to
develop obesity and high blood pressure, leading to heart attacks and strokes (NHS,
2017). This is certainly alarming and more public awareness of the issue may heavily
impact on the consumption of soft drinks of PepsiCo and other similar companies.
2. Competition: It has heavy opposition from Coca-Cola in its soft drinks category. They
are constantly neck to neck with each other. This competition thereby offers room
for not so loyal client base to exchange brands quickly.
3. Product Dependence: They are only present in the food and beverage industry, which
can ultimately be harmful. They need to diversify into other product segments to
become global leaders.
4. Failed Products: Many failed products such as ‘Crystal Pepsi’ hurt the brand image of
PepsiCo and thereby giving room for the competitors to grow.
5. Value addition: Pepsi is thought to have commercials that can be focused in the
direction of youngsters. However,
it isn’t recognised to display Value advertising that’s a feature of Coca-Cola. Coca-
Cola has, again and again, targeted the fantastic values of life, something which Pepsi
can examine from them.
Ans 1) India is the largest country, population-wise, providing a vast consumer market, as per
recent data. India has beheaded China in population. Naturally, companies would like to invest
here to meet public demands and create a massive supply chain. This industry is ever-growing
with more and more revenue every year. Presently our soft drink industry in India generates
revenue of 4,704 million USD and is expected to grow 7.9% by the end of this year, 2023. This
industry includes carbonated soft drinks in India as well as non-carbonated drinks such as fruit
juices, flavoured water, fruit nectar and many more.
We have one of the largest consumptions of non-alcoholic beverages that paves the way
towards the growth of this industry. Several brands have cemented their place in the market by
using several marketing strategies such as gripping advertisements and branding. They provide
local retailers with soft drink vending machines at fair prices that also helps their brand to grow.
Companies are testing out new drinks every year to increase consumer demand.
The foreign soft drink MNC giants have around 70-75% market share in India, whereas our
local brands have about 10-15% market share. With massive demands, new companies are
investing in this industry every year. The rising health awareness in people has also increased
the consumption of drinks like juices every day.
Q2) I’ve listened soft drinks aren’t healthy. Can I give them to my kids? Are soft drinks kid-
friendly?
Ans 2) Soft drinks all over the world have a bad reputation when it comes to its effects on our
health. Ingredients like artificial sweeteners and carbonated water are not good for our health.
With the rising awareness in the world about the large amount of sugar used to make a soft
drink, the companies have launched ‘diet’ and sugar free versions. Excess consumption of these
sugar filled drinks can lead to weight gain also.
Most soft drinks are caffeinated too which give an energy boost and a sudden sugar rush.
However, in comparison to your regular coffee, these drinks have fewer contents of caffeine.
Too much intake of caffeine can make you dizzy and nauseous, which can be bad for your
health.
In addition to that, there are other options as well in the form of energy drinks. These can
replenish your stamina in sports or professional dance performances like Gatorade or as a party
starter (red bull).
Soft drinks or aerated beverages are carbonated. Most of them are acidic in nature too. They
are capable of decreasing the antibacterial action of most medicines. The carbonated drinks
when combined with certain medicines can lead to allergies or adverse effects in some patients.
Hence, soft drinks should be avoided completely. Soft drinks also restrict the absorption of
iron. So, if you are taking iron supplements or medicines with iron then consuming them with
soft drinks is not a good idea.
Juices and other drinks can also reduce the effect of drugs on your body thereby making them
ineffective and slowing down the recovery process. Of all the juices, grape juice must be
avoided the most while taking prescription pills as the furanocoumarins present in the juice
inhibits the absorption of the drugs and can lead to adverse effects.
Ans4) The truth is that artificially sweetened soft drinks – even those fortified with vitamins and
minerals -- are anything but natural and healthy, says Marion Nestle, New York University
nutrition professor and author of What to Eat.
"It is ridiculous to market soft drinks as healthy, but in today’s marketplace consumers are
demanding more healthy-looking food, and beverages and soft drink manufacturers need to boost
sales," she says.
Most consumers do not need the extra vitamins found in fortified soft drinks; she adds.
"We are not vitamin deficient, and these beverages do not address the real health issues of our
country of obesity, heart disease, or cancer," says Nestle.
Ans5) The regular consumption of soft drinks has been associated with multiple chronic health
conditions. These increased risks are largely due to the added ingredients in soft drinks,
especially sugar. Indeed, some sugar-sweetened soft drinks contain 40 grams of sugar or more
per 12-ounce serving, which exceeds the recommended daily sugar intake for adults.
According to the American Heart Association, women should consume no more than 25 grams
of added sugar per day and men 38 grams per day. The consumption of just one to two servings
of sugar-sweetened soft drinks daily significantly increases the risk of metabolic
syndrome and type 2 diabetes.
CHAPTER 3
Pepsi 29 58%
Total 50 100%
Analysis: 29 respondents consume Pepsi which are 58% & 21 respondents consumes Coca
Cola which are 42%.
Conclusion: Most of the respondents prefer to consume Pepsi over Coca Cola because of the
taste & popularity.
Q.2) How often do you consume soft drinks?
60%
50%
40%
30%
20%
10%
0%
More than once in a day Few times in a week Only on special occasions Never
Analysis: 7 respondents consume soft drink more than once a day, 19 respondents consume
soft drink few times a week & 24 respondents consume soft drink only on special occasions.
Conclusion: Most of the respondents consume soft drink on special occasions like in a
party & some respondent prefer it few times a week mainly in summer season.
Q.3) Since how much time you are using your brand?
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
1-6 months 6-12 months 1-2 years More than 2 years
Analysis: 9 respondents are consuming there brand from 1-6 months i.e., 18%, 11
respondents are consuming there brand from 6-12 months i.e., 22%, 8 respondents are
consuming there brand from 1-2 years i.e., 16% & 22 respondents are consuming there
brand from more than 2 years i.e., 44%.
Conclusion: Most of the respondents are consuming there brand from more than 2 years
because of the taste & preference.
Q.4) What is the reason behind choosing your brand?
35%
30%
25%
20%
15%
10%
5%
0%
Taste Advertisement Easily Available Popularity
Analysis: 16 respondents choose their brand on the basis of taste i.e., 32%, 9 respondents
choose their brand on the basis of advertisement i.e., 18%, 11 respondents choose their
brand on the basis of their easy availability i.e., 22% & 14 respondent choose their brand
on the basis of their popularity i.e., 28%.
Conclusion: There are several factors which affects the decisions of the respondents in
choosing their favourite brand of soft drink. Taste & popularity are the main factors for
influencing the choice of brand.
Q.5) Will you change the brand on the basis of price reduction?
Yes No
Analysis: 28 respondents’ responses that they will change the brand on the basis of their
price reduction i.e., 56% & 22 respondents’ responses that they will not change the brand
on the basis of their price reduction i.e., 44%.
Conclusion: Most of the respondents are agreed to change the brand on the basis of price
reduction because of the taste of other brand but some respondents are not willing to change
their brand on the basis of price reduction because they are satisfied with their brand.
Q.6) Which brand has creative & appealing advertising of the soft drink company?
Total 50 100%
Analysis: 30 respondent responses that Pepsi has most creative & appealing advertisement
of the soft drink company i.e., 60% & 20 respondent responses towards in the favour of
Coca Cola i.e., 40%.
Conclusion: 60% of the respondents are satisfied with the creative & appealing
advertisement of Pepsi due to the Cricketer involved in the advertisement & 40% the
respondents are satisfied with the creative & appealing advertisement of Coca Cola because
of the Actors doing the advertisement.
Q.7) Which brand will you prefer in case of Diet cold drink?
Analysis: 58% respondents replied that they would prefer Pepsi in case of Diet cold drink
& 42% respondents replied that they would prefer Coca Cola in case of Diet cold drink.
Conclusion: 29 of the respondents are satisfied with the Diet cold drink of Pepsi because
of the taste & colour of the soft drink & 21 of the respondents are satisfied with the Diet
cold drink of Coca Cola because of its taste.
Q.8) According to you, which brand of soft drink, is most preferred by the youngsters?
Analysis: 36 respondent responses that youngsters prefer Pepsi i.e., 72% & 14 respondent
responses that youngsters prefer Coca Cola i.e., 28%.
Conclusion: Most of the respondents think that youngsters prefer Pepsi because of its taste
& very few responded that Coca Cola is preferred by the youngsters because of its
advertisement.
Q.9) What is the reason behind choosing the particular soft drink brand by the youth?
Analysis: 12% respondents replied that status symbol affects the preferences of the soft
drink by the youth, 30% respondents replied that style factor determines the preferences of
the soft drink by the youth, 28% respondent replied that the advertisement of the soft drink
by their idols affects the preferences by the youth & 30% respondent replied that other
factor affects the preferences of the youth.
Conclusion: Most of the respondents find that style factor & other factors play an important
role in choosing the soft drink brand by the youth.
Q.10) Please indicate your satisfaction level with your Cola brand?
Analysis: 17 respondents are highly satisfied with their soft drink brand which is 34%, 29
respondents are satisfied with their soft drink brand which is 58% & only 4 respondents are
not satisfied with their soft drink brand which is 8%.
Conclusion: Most of the respondents are satisfied with the of products of their soft drink
brand because of the taste and very few are not satisfied with their soft drink brand because
of the taste.
MARKETING STRATEGIES
COCA COLA
Targets: -
• Firstly, the company targets young people between 10 and 35. They use celebrities in
their advertisements to attract them and arrange campaigns in universities, schools, and
colleges.
• They also target middle-aged and older adults who are diet conscious or diabetic by
offering diet coke.
• It introduces packaging and sizes priced at various levels to increase affordability and
target students, middle class, and low-income families and individuals.
• Coca cola sells its products in different nations. In fact, in America it is liked by old
people too. The company changes its products according to nations, like the Asian
version is sweeter than the other ones.
• Coca cola company targets customer according to their genders. Like the coca cola light
is preferred by females while coke zero and thumbs up by men due to its strong taste.
Strategies:
1. In 2015 on the occasion of Christmas, company launches an ad, follows a young boy who
gives coca cola to the ones who make the Christmas reality... even one to the Santa Claus…
moving of trucks stating coca cola on Christmas was most attractable...
a) The important aspect of the ad was that it targeted the whole family.
b) Rather than focusing on selling the drink, coke focusses on spreading happiness.
2. Sharing Can: The company focusses on sharing happiness. It targeted the partners… it
launched two bottles with such machinery on cap that it can only be open if you scroll the
heads of both bottles with each other.
a) keeping the above objective in mind, it further launches such cans that can split into two
cokes… making it funny, interesting and demandable by couples.
3. Share a coke: Coca Cola always surprises its customers through its marketing strategies and
winning the hearts of customers. The company launches the coke with the name of the
customers... for e.g. if one-person xyz wants to buy a coke then it can buy it with its name on
it.
a) company set its machine on different places where the people can order the coke with
their name on it… they got the right to design their coke themselves.
b) In summer, company sold 250 million bottles of cans in nation of just 23 million people.
c) This overwhelming positive result led to the expansion of campaign through countries.
4. Coca cola wants people to purchase coke subconsciously. They study Indian customer
psychology and realised “Thanda” means cold drink. Now what they made an ad staring Amir
khan, stating “Thanda means coca cola” … as a result the ad got viral…
5. Product strategy: Coca-Cola has approximately 500 products. Its soft drinks are offered
globally, and its product strategy includes a marketing mix. Its beverages like Coca-Cola,
Minute Maid, Diet Coke, Light, Coca-Cola Life, Coca-Cola Zero, Sprite Fanta, and more are
sold in various sizes and packaging. They contribute a significant share and generate enormous
profits.
6. Price strategy: Coca-Cola's price remained fixed for approximately 73 years at five cents.
The company had to make its pricing strategy flexible with the increased competition with
competitors like Pepsi. It doesn't drop its price significantly, nor does it increase the price
unreasonably, as this would lead to consumers doubting the product quality and switching to
the alternative.
7. Place Strategy: Coca-Cola has a vast distribution network. It has six operating regions: North
America, Latin America, Africa, Europe, the Pacific, and Eurasia. The company's bottling
partners manufacture, package, and ship to the agents. The agents then transport the products
by road to the stockist, then to distributors, to retailers, and finally to the customer. Coca-Cola
also has an extensive reverse supply chain network to collect leftover glass bottles for reuse.
Thus, saving costs and resources.
8. Promotion strategy: coca cola spends up to $4 million annually on its marketing and
branding. It employs different promotional and the marketing strategies to survive intense
competition in the market.
9. Hug me: coca cola company launches a vending machine in Singapore with name hug me,
to whom the buyer has to hug and he/she will get free coca cola…
PEPSI
✓ Unlike Coca-Cola, PepsiCo concentrates on both the food and beverages industry
leveraging its competitive advantage. It has 23 brands under its roof and a diverse
product portfolio. This has significantly helped in more sales and thus increase its market
share.
✓ Pepsi offers customised products to serve particular geographic locations. It also makes
significant investments in developing new products.
✓ Since the first Pepsi-Cola was made in 1893, the beverage has undergone several
changes. Here are a few well-known flavours of Pepsi — Diet Pepsi, Crystal Pepsi, and
Pepsi Twist.
✓ The well-known beverage brands produced by PepsiCo include Pepsi, 7Up, Bottled
Starbucks drinks, Mountain Dew, Fruit juices, and numerous others.
Strategies: -
1. Pepsi's marketing strategy is focused on its creative advertising. They are well
recognised for emphasising on the Pepsi generation, sometimes called the new
generation. They contain witty references, pop culture, and a variety of slogans
over the years.
4. Cindy Crawford exits a red Lamborghini in this promo wearing a white bathing
suit and denim shorts, and she proceeds to a vending machine. As two little boys
stare in awe, she takes a sip of the cool beverage. Amusingly, one of the children
says, "Is that a fantastic new Pepsi can or what?"
Even while the advertisement first sparked good debate, it now seems like the
conversation centres on how inappropriate it is.
5. A commercial that featured the queens —Beyonce, Britney Spears and Pink.
Dressed in Armor singing "We Will Rock You" for emperor Enrique Iglesias.
6. In India also, Pepsi launched “crash the Pepsi IPL campaign”. In which famous
tv stars Virat Kohli and Ranveer Singh told the people to make a video for IPL
featuring Pepsi. The one with best video will replace the actual video on Pepsi
social media handle. And the best one will be played on televisions as well…
Many people made videos due to which Pepsi got popularised with less cost and
without much advertising.
COKE VS. PEPSI: WHO CONTROLS THE MARKET SHARE?
• PepsiCo. Inc. and The Coca-Cola Corporation are the two powerhouses controlling the
bulk of the carbonated soft drink (CSD) and beverage industry.
• Both companies have a large global presence, controlling several hundred brand names
each.
• Since 2004, Coca-Cola Company has been the market leader, according to industry
statistics.
• Pepsi ranks second.
• In 2022, PepsiCo had a market cap of $229.3 billion while Coca-Cola had a market
cap of $268.4 billion.
Carbonated soft drinks belong to the non-alcoholic beverage industry. This industry produces
regular and diet fizzy drinks, juice, bottled water, sports and energy drinks, and hot and iced
coffee and tea. The market leaders in this industry are The Coca-Cola Corporation, PepsiCo.
Inc.
The Coca-Cola Corporation and PepsiCo have been long-term competitors. Pepsi has been
using the famous "Pepsi challenge" as a promotional slogan since 1975. The challenge was
originally a taste experiment where consumers were invited to try beverages out of two blank
cups—one filled with Pepsi Cola and one containing Coca-Cola. Consumers were asked to
compare the two drinks and pick the one that they preferred. Pepsi Cola was the winner.
FINDINGS
• Most of the respondents prefer to consume Pepsi over Coca Cola because of the taste
& popularity.
• Most of the respondents consume soft drink on special occasions like in a party & some
respondent prefer it few times a week mainly in summer season.
• Most of the respondents are consuming there brand from more than 2 years because of
the taste & preference.
• There are several factors which affects the decisions of the respondents in choosing
their favourite brand of soft drink. Taste & popularity are the main factors for
influencing the choice of brand.
• Most of the respondents are agreed to change the brand on the basis of price reduction
because of the taste of other brand but some respondents are not willing to change their
brand on the basis of price reduction because they are satisfied with their brand.
• 60% of the respondents are satisfied with the creative & appealing advertisement of
Pepsi due to the Cricketer involved in the advertisement & 40% the respondents are
satisfied with the creative & appealing advertisement of Coca Cola because of the
Actors doing the advertisement.
• 29 of the respondents are satisfied with the Diet cold drink of Pepsi because of the taste
& colour of the soft drink & 21 of the respondents are satisfied with the Diet cold drink
of Coca Cola because of its taste.
• Most of the respondents think that youngsters prefer Pepsi because of its taste & very
few responded that Coca Cola is preferred by the youngsters because of its
advertisement.
• Most of the respondents find that style factor & other factors play an important role in
choosing the soft drink brand by the youth.
• Most of the respondents are satisfied with the of products of their soft drink brand
because of the taste and very few are not satisfied with their soft drink brand because
of the taste.
LIMITATIONS
1. The study made use of both the primary and secondary sources of information. The accuracy
and authenticity of statistics depends of the accuracy of the second source itself. Therefore, the
limitation of the secondary source is also bound to be present in the analysis too.
2. In spite of all the care taken to translate the feelings and opinions of the respondents, the
errors might creep into the study, may be because of the reason that consumers may fail to
articulate their feelings properly.
3. The sample size of 40 respondents is too small to find out the consumer perception. Because
we both were covering Pepsi & Coca Cola both.
4. In some cases, the respondent was not giving us the proper reply. He/she might think that
this is only wastage of time or this might create some problem etc. And as a result, he/she has
given some fake answers and fills the questionnaire very casually.
5. The area of study is limited and confined to certain limitation. It is possible that some
potential source might have remained untapped.
6. Since the result has been drawn on the basis of the information provided by the respondents
therefore there is a chance of error.
7. The questioners were in English so many people were avoiding filling the questioners.
SUGGESTIONS & RECOMMENDATIONS
Pepsi is the market leader in terms of soft drinks industry in India. Pepsi’s main target is
obviously to be the market leader and leave its nearest competitor, Coca Cola, far behind. To
achieve this Pepsi seems to be relying on mass advertising. They spend about 50-60 crore
rupees annually on marketing activities. The consumer is bombarded with Pepsi
advertisements, sign, logo’s etc., everywhere. Pepsi’s core market is the youth & adult and
Pepsi is taking great measures to change the perception of these young-adults. Pepsi wants that
these consumers should associate all colas as Pepsi, the brand Pepsi and cola should be
synonymous with each other. This they are trying to do by getting the heroes of these consumers
to endorse their product e.g. Sachin Tendulkar and also by advertising for and by youngsters.
Pepsi drinks are available in almost the whole of India, this shows the importance paid to
distribution. Brand loyalists are very few in the market. Thus, the drink should be easily
available, so that consumers cannot shift their preferences.
For the purpose of the study, questionnaires were prepared for the Consumers. Care was taken
to interview all types of consumers, i.e., -
Q.3) Since how much time you are using your brand?
a.) 1-6 months ( )
b.) 6-12 months ( )
c.) 1-2 years ( )
d.) More than 2 years ( )
Q.5) Will you change the brand on the basis of price reduction?
a.) Yes ( )
b.) No ( )
Q.6) Which brand has creative & appealing advertising of the soft drink company?
a.) Pepsi ( )
b.) Coca- Cola ( )
Q.7) Which brand will you prefer in case of Diet cold drink?
a.) Pepsi ( )
b.) Coca- Cola ( )
Q.8) According to you, which brand of soft drink, is most preferred by the youngsters?
a.) Pepsi ( )
b.) Coca- Cola ( )
Q.9) What is the reason behind choosing the particular soft drink brand by the youth?
a.) Status symbol ( )
b.) Style factor ( )
c.) Advertisement by their idols ( )
d.) Other factors ( )
Q.10) Please indicate your satisfaction level with your Cola brand?
a.) Highly satisfied ( )
b.) Satisfied ( )
c.) Not satisfied ( )