Pepsi co Introduction:-

Pepsi was founded in New York in 1965. It is Producing Non-alcoholic beverage and Food
processing items. Pepsi is a carbonated beverage that is produced and manufactured by
PepsiCo. It is sold in retail stores, restaurants cinemas and from vending machines. The drink
was first made in the 1890s by pharmacist Caleb Bradham in New Bern, North Carolina. The
brand was trademarked on June 16, 1903. Pepsi arrived on the market in India in
1988.PepsiCo gained entry to India in 1988 by creating a joint venture with the Punjab
government-owned Punjab Agro Industrial Corporation (PAIC) and Voltas India Limited.
This joint venture marketed and sold Lehar Pepsi until 1991, when the use of foreign brands
was allowed; PepsiCo bought out its partners and ended the joint venture in 1994. Others
claim that firstly Pepsi was banned from import in India, in 1970, for having refused to
release the list of its ingredients and in 1993, the ban was lifted, with Pepsi arriving on the
market shortly afterwards. These controversies are a reminder of "Indias sometimes
acrimonious relationship with huge multinational companies." Indeed, some argue that
PepsiCo and The Coca-Cola Company have "been major targets in part because they are
well-known foreign companies that draw plenty of attention."
 Introduction of coco-cola

Coca-Cola is a carbonated soft drink sold in stores,

restaurants and vending machines worldwide. The Coca-
Cola Company in Atlanta, Georgia produces it. It was
incorporated in 1886. The Coca-Cola Company claims
that it is sold in over 200 countries.
The US soft-drink giant, Coca-Cola, reentered India in
the 1990s after abandoning its businesses in the late
1970s in the wake of Foreign Exchange Regulation Act
of 1973. The Act, meant to 'Indianite' foreign companies,
made it mandatory for foreign companies to dilute their
shareholdings to 40 per cent. Instead of diluting its
shareholdings to the required limit prescribed by the Act,
Coca-Cola opted to discontinue its operations in India.
Coca-Cola is a leading player in the Indian beverage
market with an approximate 60 per cent share in the
carbonated soft drinks segment.
The US soft-drink giant, Coca-Cola, reentered India in
the 1990s after abandoning its businesses in the late
1970s in the wake of Foreign Exchange Regulation Act
of 1973. The Act, meant to 'Indianize' foreign companies,
made it mandatory for foreign companies to dilute their
shareholdings to 40 per cent. Instead of diluting its
shareholdings to the required limit prescribed by the Act,
Coca-Cola opted to discontinue its operations in India.

Mission & Vision

 Mission of Coke

To refresh the world in mind, body &

sprit.
To create a value in brands & difference
everywhere we engage.
To do everything differs.
Our product in each hand.
Being a global leader in beverage.

Mission of Pepsi

PepsiCo mission is to be the world's premier consumer Products Company focused on

convenient foods and beverages. We seek to produce 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.

Vision of coke
Profit: Maximize the return of shareholder.
People: Establish a great place to work where people are inspired to the Best they can do.
Portfolio : Bringing to the world a portfolio of beverage brands that
Anticipate and safely peoples desire & need.
Partners: nurturing a winning network of partners & building a mutual Loyalty.

Vision of Pepsi co.

Pepsi co vision is put into action through programs and a focus on environmental
stewardship, activities to benefit society, and a commitment to build shareholder value by
making PepsiCo a truly sustainable company.
 Marketing Mix

Marketing Mix

Marketing mix is the set of marketing tools that the firm uses to pursue its marketing
objectives. Marketing mix has a classification for these marketing tools. these marketing are
classified and called as the four ps i.e. product, price, place and promotion.
The most basic marketing tool is product which includes product design, quality, features,
branding, and packaging. a critical marketing tool is price i.e. the amount of money that
customers pay for the product. it also includes discounts, allowances, credit terms and
payment period.
Place is another key marketing mix tool. and it includes various activities the company
undertakes to make the product accessible and available to the customer. Some factors that
decide the place are transport facilities, channels of distribution, coverage area, etc.
Promotion is the fourth marketing mix tool which includes all the activities that the company
undertakes to communicate and promote its product to target market. Promotion includes
sales promotion,
advertising, sales
force, public
relations, direct
marketing, etc.
 Product

Product
In marketing, a product is anything that can be offered to a market that might satisfy a want
or need. It is of two types: Tangible (physical) and Intangible (non-physical). Since services
have been at the forefront of all modern marketing strategies, some intangibility has become
essential part of marketing offers. It is therefore the complete bundle of benefits or
satisfactions that buyers perceive they will obtain if they purchase the product. It is the sum
of all physical, psychological, symbolic, and service attributes, not just the physical
merchandise. All products offered in a market can be placed between Tangible (Pure Product)
and Intangible (Pure Service) spectrum.

A product is similar to goods. In accounting, goods are physical objects that are available in
the marketplace. This differentiates them from a service, which is a non-material product.
The term goods is used primarily by those that wish to abstract from the details of a given
product. As such it is useful in accounting and economic models. The term product is used
primarily by those that wish to examine the details and richness of a specific market offering.
As such it is useful to marketers, managers, and quality control specialists.

A service is a non-material or intangible product - such as professional consultancy, serving,

or an entertainment experience.
 Coca-Cola Product
The Coca-Cola formula is The Coca-Cola Company's secret recipe for Coca-Cola. As a
publicity marketing strategy started by Robert W. Woodruff, the company presents the
formula as one of the most closely held trade secrets ever and only a few employees know or
have access to. This Coca-Cola formula appears to be the original formula to Coca-Cola. It is
from the book For God, Country and Coca-Cola.

The company Coca-cola is a multinational and it is not limited to one product. Through the
years they have invented and introduced many products than their main cola drinks. The list
of Coca-cola brands are as follows:
 Lemon & Paeroa
Lift
Lift plus
Lilt
Manzana Lift
Mare Rosso
Mello Yello
Mezzo Mix
Minute Maid
Nestea
New Coke
Nordic Mist
OK Soda
Pibb Xtra
Powerade
Qoo
Raspberry Coke
Relentless
Sarsi
Senzao
Simply Orange
Smart
Sparkle
Sprite
Sprite Ice
Sprite Remix
Sprite Zero
Surge
Swerve
Tab
Tab Clear
Appletiser Tab Energy
Aquarius Tab X-Tra
BPM Energy Tiky
Barq's Vault
Beat soda
Beverly
Cannings
Cheers
Ciel
Coca-Cola Black
Cherry Vanilla
Coca-Cola Blak
Coca-Cola C2
Coca-Cola Cherry
Coca-Cola Citra
Coca-Cola M5
Coca-Cola Zero
Coca-Cola
Coca-Cola with
Lemon
Coca-Cola with Lime
Dasani
Delaware Punch
Diet Coke
Fanta
Fanta Citrus
Fioravanti
Fresca
Frisco
Fruitopia
Frutonic
Full Throttle
Georgia
Hi-C
Hit
Kia-Ora
Kinley

Pepsi-Product

The Pepsi-Cola drink contains basic ingredients found in most other similar
drinks including carbonated water, high fructose corn syrup, sugar, colorings,
phosphoric acid, caffeine, citric acid and natural flavors. The caffeine free
Pepsi-Cola contains the same ingredients but no caffeine.
Some of the different and varied brands of Pepsi are as follows:

All Sport Pepsi

Aquafina Pepsi Blue
Caffeine-Free Pepsi Pepsi Cappuccino
Crystal Pepsi Pepsi Max
Diet Pepsi Pepsi ONE
Gatorade Pepsi Samba
Izze Pepsi Tarik
Jazz Pepsi Twist
Josta Propel Fitness Water
Kas Sierra Mist
Manzanita Sol Slice
Mirinda SoBe
Mountain Dew Storm
Mountain Dew AMP Teem
Mountain Dew LiveWire Tropicana Products
Mountain Dew MDX Tropicana Twister
Mug Root Beer

Comparison Coke and Pepsi-

Product

Coke & Pepsi-Product

As seen above both the companies Coke and Pepsi have a number of products. Many of these
products are innovations but there are also many products which are brought out just as a
competitive product for the other companies. Some of these products that are brought in the
market by both the companies to compete against each other are as follows:

Coke Pepsi

The main dark cola drink of the company Pepsi version of dark cola which is the
which started the rivalry between these major primary competitor to Coke.
companies.

Full Throttle is an energy drink brand AMP is an energy drink produced and
produced by The Coca-Cola Company. It distributed by PepsiCo under the Mountain
debuted in late 2004 in North America. Dew soft drink brand.

Vault is a carbonated beverage that was Mountain Dew MDX is an energy drink
released by The Coca-Cola Company in manufactured and distributed by PepsiCo
June 2005. under the Mountain Dew brand. It was
introduced in 2005.

Powerade is a sports drink by The Coca-
Cola Company and currently number two
in the sports drink market worldwide.
Gatorade is a non-carbonated
sports drink marketed by Quaker Oats
Company, a division of PepsiCo.
Originally made for athletes, it is now
often consumed as a snack beverage.

Sprite is a clear, lemon-lime flavored, non- 7 Up is a brand of a lemon-lime flavored

caffeinated soft drink, produced by the soft drink.
Coca-Cola Company. It was introduced to
the United States in 1961.

Minute Maid is a product line of beverages,

Tropicana Products is an American
usually associated with orange juice, but
company based in Bradenton, Florida,
now extends to soft drinks of many kinds.
USA, which is one of the world's largest
The Minute Maid company is now owned
producers and marketers of orange juice. It
by Coca-Cola, and is the world's largest
has been owned by PepsiCo, Inc. since
marketer of fruit juices and drinks. It is
1998.
headquartered in Houston, Texas.

Nestea is a brand of iced tea manufactured
and distributed by the Nestle company's
beverage department in the United States,
and by Coca-Cola in several European
countries, Brazil and Venezuela.
Lipton Original Iced Tea is a ready-to-
drink iced tea brand sold by Lipton through
a worldwide partnership with Pepsi.

Barq's is a brand of root beer notable for Mug Root Beer is a brand name of root
being the only major N o r t h beer made by the Pepsi company.
A m e r i c a n root beer to contain caffeine. It
has been bottled since the start of the 20th
century and is currently sold by the Coca-
Cola Company.

Diet Coke or Diet Coca-Cola is a sugar-
free soft drink produced and distributed by
The Coca-Cola Company. It was
introduced in the United States in July
1982.
Diet Pepsi is a low-calorie carbonated cola.
It was introduced in 1964 as a variant of
Pepsi-Cola with no sugar.
Kinley is a brand of still or carbonated Aquafina is a non-carbonated bottled water
water owned by The Coca-Cola Company. produced by PepsiCo.

Aquarius is a mineral sports drink All Sport was a sports drink. It is produced
manufactured by The Coca-Cola Company. by PepsiCo.
It was first introduced in 1983.

Fanta is a soft drink brand owned by The Mirinda is a brand of soft drink. Mirinda is
Coca-Cola Company. It is produced and owned by PepsiCo.
distributed by The Coca-Cola Company's
bottlers.

Sprite Ice was the first flavor extension for Pepsi Blue is a soft drink made by PepsiCo
The Coca-Cola Company's Sprite brand and launched in mid-2002.
soft drink.
Coca-Cola Blak is a coffee-flavoured soft Pepsi Cappuccino is a cappuccino-flavored
drink introduced by Coca-Cola in 2006. carbonated soft drink produced by Pepsico.

Maaza is a Coca-Cola fruit drink brand Slice is a line of fruit-flavored soft drinks
marketed in India and Bangladesh. manufactured by PepsiCo and introduced
in 1984.

Limca is a lemon and lime flavoured Teem was a lemon-lime-flavored soft drink
carbonated soft drink made in India by produced by The Pepsi-Cola Company.
Coca-cola.

Price
 Price

In economics and business, the price is the assigned numerical monetary value
of a good, service or asset.
Price is also central to marketing where it is one of the four variables in the
marketing mix that business people use to develop a marketing plan.
Pricing is a big part of the marketing mix. Choosing the right price and the right
pricing strategy is crucial to the marketing process.
The price of the product is not something that is fixed. On the other hand the
price of the product depends on many other factors. Some times the price of the
product has got nothing to do with the actual product itself. The price may act as
a way to attract target customers.
The price of the product is decided keeping many things in mind. These things
include factors like cost incurred on the product, target market, competitors,
consumer buying capacity
etc.
 Coke Price

Coke was a company ruling the markets before Pepsi entered. Earlier the price of coke was
cost based i.e. it was decided on the cost which was spent on making the product plus the
profit and other expenses.
But after the emergence of other companies especially the likes of Pepsi, Coca-cola started
with a pricing strategy based on the basis of competition. Nowadays more expenses are spent
on advertising my soft-drink companies rather than on manufacturing.

Coke has brought in a revolution especially in Indian markets with the Rs. 5 pricing strategy
which was very famous. It was the first company to introduce the small bottle of Coke for
just Re.5. This campaign was very successful especially with the price conscious Indian
consumers.

Even today most prices of Coke are decided on the basis of the competition in the market.
 Pepsi Price
Pepsi again decides it price on the basis of competition. The best
think about the company Pepsi is that it is very flexible and it can
come down with the price very quickly. The company is renowned to
bring the price down even up to half if needed.

But this risk taking attitude has also earned Pepsi losses. Though lowering the price would
attract the customers but it would not help them cover up the cost incurred in production
hence causing them losses.
This was the situation earlier but now Pepsi is a full-fledged and growing company. It has
covered all its losses and is now growing at a rapid rate.

Place
 Pepsi and coke place

Place is one of the four elements of marketing mix. Frequently there may be a chain of
intermediaries; each passing the product down the chain to the next organization, before it
finally reaches the consumer or end-user. This process is known as the 'distribution chain' or
the 'channel. So we say that a set of interdependent organizations involved in the process of
making a product available for the use or consumption is known as Distribution channel.
Each of the elements in these chains will have their own specific needs, which the producer
must take into account, along with those of the all-important end-user.
Place is refers to distribution which is given in after promotion.
 Promotion

Promotion
Promotion is one of the four aspects of marketing. Promotion comprises four subcategories:
- Advertising,
-Personal selling,
-Sales promotion,
- Publicity and public relations
The specification of these four variables creates a promotional mix or promotional plan. A
promotional mix specifies how much attention to pay to each of the four subcategories, and
how much money to budget for each. A promotional plan can have a wide range of
objectives, including: sales increases, new product acceptance, creation of brand equity,
positioning, competitive retaliations, or creation of a corporate image.
Promotion is the fourth marketing mix tool which includes all the activities that the company
undertakes to communicate and promote its product to target market. Promotion includes
sales promotion, advertising, sales force, public relations, direct marketing, etc.
 Promotion of Pepsi & Coke
Both the companies Pepsi and coke are famous for their promotions. The rivalry was first
started when Pepsi started with its blind taste tests known as the Pepsi Challenge. The
challenge is designed to be a direct response to critics who allege that Coca-Cola and Pepsi-
Cola are identical drinks, with no meaningful differences. The challenge takes the form of a
taste test. At malls, shopping centers and other public locations, a Pepsi representative sets up
a table with two blank cups, one containing Pepsi and one with Coke. Shoppers are
encouraged to taste both colas, and then select which drink they prefer. Then the
representative reveals the two bottles so the taster can see whether they preferred Coke or
Pepsi. If Pepsi is revealed, the shopper is given a small prize. The implication is that
Pepsi tastes better than Coke, and thus consumers should purchase Pepsi.
In blind taste tests, more consumers prefer the taste of Pepsi to that of Coca-Cola. Because
Coke was the historical leader, more people expected that they'd prefer and select Coke.
Their surprise at picking Pepsi in the blind taste test (products were served in unmarked cups)
helped change their minds about which product they prefer. Capturing this on film, Pepsi
turned this into a memorable TV campaign that lasted many years.
Also ad-campaigns are put up on the television by both the players. The following statistic
just tells of much of share of ads on TV are captured by these players.
In India both Coca-cola and PepsiCo have shown the door to older celebrity endorsers and
are betting big on emerging stars.
They both promote their products trough advertisement.

Pepsi-Advertisement
Firstly the Pepsi in America advertise its product for the society as whole and for the
purpose of refreshment, which can be clearly visible from their advertisement slogans
like-
- Any whether is Pepsi whether
- The light refreshment
- Be sociable, have a Pepsi
In India PepsiCo was Selecting to celebrity for advertisement these celebrity are-
Shahrukh Khan,
Sachin Tendulkar,
Rahul Dravid,
Sourav Ganguly,
Mahender singh dhoni,
Ranbir kapoor,
Deepika padukone,
Ishant sharma,
Rohitsharma,
Shreeshant
Virender sehwag to strengthen its youngistaan brigade. PepsiCo signed Asin (of

Ghajini fame) to take war to orange flavor category.

PepsiCo had tried to tied up with Chennai super kings for its 7up brand, which is the most
preferred drink there.PepsiCo has also signed on Telegu movie actor Ram Charanteja as
part of its youngistaan campaign to endorse Pepsi in Andhra Pradesh
Coke Advertisement

There are different advertisement, which depicts thatscoca cola, is the need for party or coca
cola brings more joy and taste to the party. Cocacola has roped in GautamGambir as brand
ambassador for the company new coca cola open happiness campaign ahead of IPL
seasons.
Coke also advertises in different electronic media and print media for advertisement they use
Internet, TV show Magazine, News paper and many more.
Cokes advertisement was very famous in which famous actor Amir khan Show that Thanda
matlab coco cola.
Distribution
 Distribution Strategy

Coca cola and PepsiCo are worldwide famous for their Distribution channel. In India the
distribution network of Coca cola had 6.5lakh outlets across the country in 2000 and on the
other hand Pepsi Co's distribution network had 6 lakh outlets across the country in the same
year. Coca cola and PepsiCo had formulated different distribution strategy for urban sector
and rural sector. For the urban distribution channel these companies adopted the model like
direct store distribution, broker warehouse distribution and Vending & Food Service (V&FS)
systems where as these companies are following the Hub and Spoke model for rural
distribution channel, in which they divided the different categories of distributors according
to the area they are covering.
Rural Distribution Channel-

Since last five years soft drink companies had started penetrating rural marketing also. For
the rural sector these companies are working on Hub and Spoke model. To reach out to rural
India, Coke started out by drawing up a hit list of high potential villages from various
districts. So to ensure full loads, large distributors (Hubs) were appointed, and they were
supplied from the company's depot in large towns and cities.

Distribution Channels in Urban Area

Both the soft drink companys coke and Pepsi adopted a model DSD that is Direct Store
developed various distribution models to offer its products and services to customers in the
Distribution (BWD) and Vending & Food service (V&FS) systems. Distribution In this
company directly supplies its product to the retailers which helps them
of the product to the retailer. Based on its experience, PepsiCo and Coca cola had to save the
margin, which they give to the wholesalers and it also ensures quick availability US. Besides
Direct Store Delivery (DSD they adopted other system like Broker Warehouse.

(DIRECT STORE DISTRIBUTION)

Innovation in Distribution System

Through their use of the most modern technology in recent years, PepsiCo and its bottlers
were able to improve their distribution and logistics management operations significantly. To
further improve the market penetration of its products globally, PepsiCo launched two new
distribution methods in the initial years of the new millennium. These were the chilled DSD
system and the hybrid system.

Chilled DSD System-

The chilled DSD system was a relatively small distribution method, created for items, which
required continuous refrigeration. This was primarily created for the fruit juices product line
as they can spoil quickly if not given the required condition and care so chilled DSD system
ensures that continuous refrigeration helps in preventing the products from spoiling.
The Hybrid System

In this system the company makes the collaboration with other company of complementary
good so that their distribution channel is also used for the sales of its product. As taking the
practical example of the collaboration of Coca cola and McDonald. Through this
collaboration the distribution channel of the Coca cola increases, as at ever McDonald the
Coca cola will be there. So increase the distribution channel through collaboration with other
company is known as hybrid system. This system is actually benefited by the synergy created
by collaboration of two companies.

INTERNATIONAL DISTRIBUTION SYSTEM MANAGEMENT

In order to manage its distribution systems effectively, PepsiCo and Coca cola had put in
place-advanced logistics systems. They sold beverage concentrate to bottlers, who added
carbon dioxide, sweetener and water to make beverages and beverage syrup. Syrup was either
sold directly to the fountain accounts or was combined with carbonated water for bottling.
Bottling companies were (with a few exceptions) owned and operated by local companies in
the countries where PepsiCo and Coca cola operated.

SWOT ANALYSIS

SWOT ANALYSIS OF PEPSI AND COKE

Strength-

Pepsi and Coke has been a complex part of world culture for a very long time. The
Products image is loaded with over-romanticizing and fun, this is an image many people have
taken deeply to heart. Pepsi and Coke are the extremely recognizable brand, which is the
greatest strength of them. Additionally there Bottling system is one of their greatest strengths.
This allows them to the conduct business on a global scale while at the same time maintain a
local approach. The bottling companies are locally owned and operated by independent
business people who are authorized to sell product of these cola giant.
PepsiCo and Coca cola are having the largest distribution network in the world, which is also
there one of the greatest strength.

Weakness-

Weaknesses for any business need to be both minimized and monitored in order to
Effectively achieve productivity and efficiency in their business activities. Although the
international sales are increases but there is getting saturation evident through the stability in
cola drink in USA market and moreover all over the world the customer preference for cola
drink is shifting towards the healthy drink is taking place. Being addictive of cola drink is
also a health problem, because drinking of carbonated soft drink daily has an effect on your
body also.

Opportunity-

Brand recognition is the significant factor affecting Pepsi and Coke competitive position.
Pepsi and Coke brand is known well throughout 94% of world today. As in developing
countries the per head consumption of cola drink is very less which evident from taking
example of India.
In India per head consumption is only 6 bottles as compare to 700 bottles in USA and in
Indian market only 5% of the beverages come under packaging. So looking at these data we
can that for these two giant a lot of potential is there in developing market which is now also
untapped.

Threats -
Currently, the threat of new viable competitors in the carbonated soft drink industry is not
very substantial. The threat of Substitute, however, is a very real threat. The soft drink
industry is very strong, but consumers are not necessarily married to it. Possible substitutes
that continuously put pressure on both Pepsi and Coke include tea, coffee, juice, milk and hot
chocolate. Even through the Coca cola and Pepsi control nearly 40% of the entire beverage
market, the changing health consciousness of the market could have a serious affect. Of
course, both have already diversified into these markets, but still these Substitute will remain
threat to them. Consumer buying power is also represents a key threat to the Pepsi and Coke.
 Conclusion

Conclusion

After the completion of project we have seen the different aspects of this Project. Also we
have gained some new knowledge about both of company.
The outcome that came out from the information work is that in Trinity coke is the market
leader with 54% market share. Pepsi is having only 46% market share. We come to know that
Pepsi is the leading brand of Pepsi co. with 29% market share of its total market share and
Thumbs up is the leading brand of coke with 28% market share of itself.
Through this project we also come to know that young generation is the potential market for
beverage industry, taste is the 1st preference to choosing the product and one more important
factor that below 12 years and above to 50years people like the soft drinks while people
between 12- 30 year prefer cola drinks and rest people who comes in between 30 -50 year
have common.

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