A STUDY ON

Merchandising of Pepsi and Coke in Retail Market

In partial fulfillment of the requirements for the award of degree of MASTER OF BUSINESS ADMINISTRATION

SUBMITTED BY:-

UNIVERSITY ROLL NO.

SUBMITTED TO

INTRODUCTION
Today many new companies are coming in to existence and because of this the competition is also growing rapidly. Because of this reason they have to compete with their competitors constantly. In some industries the new companies may not come in to existence but the competition between the existing companies is growing more and more. The soft drink industry is mainly suffering with this particular problem. The Companies have to continuously compete with their competitors to get good market share and good profits. To face their competitors they have to know their position and the competitors position in the market. For this, the Companys will compare itself with their competitor that means they will do the comparative analysis in all aspects. Item by Item comparison of two or more comparable alternatives, processes, products, qualifications, set of data and systems etc. in accounting for, for example changes in a financial statements items over several accounting period may be presented together to detect the emerging trends in the firms operations and result ----Business Dectionary.com

In the present scenario in the soft drink industry, the two gaint companies are fighting with each other. They are adopting and changing the strategies frequently. They are changing their schemes and offers according to their competitors. They have to analyse their competitors strategies and techniques comparing with their companys strategies and techniques. The study on comparative Analysis of Pepsi and Coke is very useful to Pepsi Company. The comparison is done on all aspects of the Company. From this analysis the company can know their position in the soft drinks market. Through this Analysis Pepsi Company can know the merits and demerits of the Company comparing with Coke Company. There are two famous beverage companies, Coke and Pepsi, have been competing dramatically and distributed the beverage market profit for several decades. In the free market, it is hard to exactly tell which one is the winner within the perfect competition, because both companies using the different styles of commercials and products to expand their markets. Personally I believe that Pepsi earned higher profit than Coke because Pepsi has better marketing strategies and the representative for its commercials and T.V Ads cost is lowers. I choose Pepsi over Coke because Pepsi has fair marketing strategy that attracts all generation of people of all ages, whereas Coke targets mostly younger generation and tries to make an image of Pepsi as a UN cool drink, and Pepsi has made more People made more people to appreciate its value and product than Coke. When we compare the commercial Ads of the two companies, Pepsi and Coke there is a major thing that we can pick up from them, which is the representative of their products. In other words who are the representatives in both commercial Ads? The companies try to establish an image to the public is that their

brands are closely related to our environment and culture in which we are living. This is the main secret of the Ads of the Soft Drinks. Sometimes they directly hit the egos of the customers and to satisfy their ego they will show the solution, that is the product of the company. This should be taken care by the Advertising department. For this reason they will use different locations of the country and different cultures of the country and different religions of the country in their Advertisements. They mean to say is we are close to your lives. This comparative analysis is totally done on the retailers opinion that means this comparative analysis is also helpful to know the belief and faith of the retailers on Pepsi Company. The total data for the study was collected based on the comparison between the two Companies, Pepsi and Coke. From this Pepsi Company can get the positive and negative points of their Company comparatively with Coke Company. During this study some retailers gave some suggestions to improve the quality of the service (supply) and the image of the Company in the market and some people gave some complaints on the dealers of the company that they are not providing the sufficient information about the offers, service and the other things regarding the company. The company can use these suggestions for its improvement and by considering the complaints they can rectify the problems that they are facing from the company or the company dealers.

PEPSI GROWTH
PEPSICO IS A WORLD LEADER IN CONVENIENT FOODS AND BEVERAGES, WITH THE REVENUE OF $310.2 MILLIONS BY 2006 AND $407.1 MILLIONS BY 2012 WITH 163,000 EMPLOYEES.THE COMPANY CONSISTS OF FRITO-LAY NORTH AMERICA, PEPSICO BEVERAGES NORTH AMERICA, PEPSICO INTERNATIONAL AND QUAKER FOODS NORTH AMERICA. "PEPSI COLA" WAS STARTED IN 1898 BY CALEB BRADHAM. THIS WAS THE SECOND COMPANY INTRODUCED IN SOFT DRINKS FIELD. THE PIONEERED COMPANY WAS COCA-COLA WHICH WAS STARTED IN 1886 IN ATLANTA BY DR. JOHN S. PEPSICO IS 44 YEARS OLD COMPANY. IT WAS FORMED BY THE MERGE OF PEPSI COLA AND FRITO-LAY IN 1965. TROPICANA WAS ACQUIRE IN 1998, AND PEPSICO COMPANY MERGED WITH THE QUAKER OATS COMPANY PEPSI ENTERED INDIA IN 1956 AND LEFT IN 1961 BECAUSE THE PRODUCTS WERE NOT ACCEPTABLE IN INDIAN IN THOSE DAYS. PEPSI RE-ENTERED INDIA IN 1990 AND WITH IN 7 YEARS IT CAPTURED GOOD MARKET SHARE IN INDIA.

IN 1969, PEPSI COMPANY INTRODUCED THE MODERN RED & WHITE MODERN PACKING TECHNOLOGY TO MAKE THE PACKS ATTRACTIVE. IN THE SAME YEAR FRITO-LAY INTRODUCED FUNGUS BRAND ONION FLAVOURED SNACKS IN TO THE MARKET.IN 1970, PEPSI INTRODUCED THE INDUSTRYS FIRST TWO LITER BOTTLES. PEPSI IS THE FIRST COMPANY TO RESPOND TO CONSUMER PREFERENCE WITH LIGHT WEIGHT, RECYCLABLE PLASTIC BOTTLES USED FOR DRINKS. IN 1776, PEPSICO ADOPTS THE WORLDWIDE BUSINESS CODE OF CONDUCT. PEPSICO BECAME THE SINGLE LARGEST SELLING SOFT DRINK BRAND SOLD IN U.S SUPER MARKETS. IN 1979, PEPSICO STARTED ITS REACH AND TECHNOLOGY CENTER IN VALLAH, INTRODUCED 12 PACKS CANS. IN 1986, THE LARGEST NORTH AMERICAN TRANSPORTATION COMPANY NORTH AMERICA VAN LINES (NAVL) WAS MERGED WITH PEPSI TO IMPROVE THE DISTRIBUTION CHANNELS OF THE COMPANY. THE SECOND PLANT WAS STARTED IN CHINA. IN 1987, THE NEW HEADQUARTERS OF PEPSICO WAS MOVED TO NEW YORK, USA. IN 1988, PEPSICO IS RECOGNIZED ALONG GRAPHICAL LINES EAST, WEST, SOUTH AND CENTRAL REGIONS, EACH WITH ITS OWN PRESIDENT AND SENIOR MANAGEMENT STAFF. IN 1989, PEPSI COMPANY INTRODUCED SHARE POWER STOCK OPTION PROGRAM FOR ALL EMPLOYEES BECOMING THE FIRST LARGE CORPORATION TOOL AWARD STOCK OPTIONS THROUGH VIRTUALLY ALL FULL TIME EMPLOYEES. IN 1990, PEPSI COMPANY WAS NAMED AS ONE OF THE MOST ADMIRED CORPORATIONS BY THE FORTUNE MAGAZINES TOP 10 FOR THE TWO SUCCESSIVE YEARS. PEPSI REENTERED IN INDIA WITH THE COLLABORATION WITH PUNJAB AGRO INDUSTRIES CORPORATION (PAIC). NEW

YORK, USA. THIS INCREASED SALE OF THE COMPANY. IN THIS YEAR THEY

 IN 1991, PEPSI COMPANY WAS NAMED AS ONE OF THE MOST ADMIRED CORPORATIONS BY THE FORTUNE MAGAZINES TOP 10 FOR THE THIRD YEAR ALSO. IN 1993, PEPSICO STARTED ITS DISTRIBUTION OF LIPTONS LINE OF READY TO DINK TEA NATIONAL WIDE. PEPSICO INTRODUCED PEPSI MAX, A SOFT DRINK WITH UNIQUE BLEND OF SWEETENERS THAT DELIVERS MAXIMUM COLA TASTE IN A NO SUGAR PRODUCT. IN 1994, PEPSI INTRODUCED AQUAFINA BOTTLED WATER INTO TEST MARKET AND GOT GREAT SUCCESS. IN 1995, PEPSI COMPANY INTRODUCED 7UP ICE COLA IN TO ITS PRODUCT LINE. IN THE SAME YEAR LAYS BRAND POTATO CHIPS WERE LAUNCHED IN 20 MARKETS OF THE WORLD. IN 1996, PEPSI COMPANY STARTED ITS WEBSITE WWW.PEPSI.COM AND IT STARTED ITS OPERATIONS THROUGHOUT THE WORLD. IN 1997, PEPSI COMPANY ANNOUNCED PLANS TO SPIN OFF ITS RESTAURANTS BUSINESS AS AN INDEPENDENT PUBLICLY TRADED COMPANY AND SOLD ITS FOOD DISTRIBUTION COMPANY TO FOCUS ON ITS CORE BEVERAGES AND SNACK FOOD BUSINESS. IN 1998, PEPSI COLA CELEBRATES 100TH ANNIVERSARY WITH FIRST WORLD WIDE BOTTLERS CONFERENCE HELD IN HAWAII, THE EVENT IS HELD DURING THE SAME TIME AS FIRST BOTTLERS CONFERENCE. PEPSI COMPANY INTRODUCED 2LIT BOTTLES IN TO THE MARKET. IN 1999, AQUAFINA BECAME OFFICIAL BEVERAGE SPONSOR OF ALL AMERICAN SOCCOR STARS VICTORY TOUR. SPRITE WAS INTRODUCED IN TO THE MARKET AND GOT SUCCESS. IN 2000, PEPSI COMPANY LAUNCHED NEW BEVERAGES LINE OF FRUIT DRINKS LIKE APPLE, STRAWBERRY, PEACH PAPAYA, PINK LEMONADE, AND STRAWBERRY MELON GRIME CITRUS.

 IN 2001, PEPSI COMPANY ANNOUNCED A NEW JOINT VENTURE IN EGYPT COMBINING THE SALT SNACK OPERATIONS OF CHIP, THE CURRENT MARKET LEADER AND TASTY FOODS, WHICH IS OWNED BY PEPSI COMPANY. In, 2003, Pepsi Company Tropicana introduced Tropicana 100% Juice Blends. IN, 2006, PEPSI COMPANY DIET PEPSI LAUNCHES JAZZ, A NEW LINE OF ZERO-CALORIE COLAS AVAILABLE IN RICH FLAVORS LIKE BLACK CHERRY FRENCH VANILLA AND STRAWBERRIES & CREAM

Type Cola Manufacturer PepsiCo Country of origin United States

1893 (as Brad's Drink) August 28, 1898 (as PepsiIntroduced Cola) 1961 (as Pepsi) Coca-Cola RC Cola Related products Irn Bru Cola Turka Big Cola Website pepsi.com

Coca-Colas History
Invented in May of 1886 by Dr. John Styth Pemberton First glass sold for 5 cents at Jacobs Pharmacy in Atlanta May 29, 1886- first newspaper advertisement pronounced it Delicious and Refreshing April 1888, Dr. Pemberton sold off his interest in Coca-Cola and passed away two days after. April 1888, Asa Candler began buying up Coca-Cola shares By 1892, Asa Candler was sole proprietor of Coca-Cola for a total investment of $2,300. Candlers expertise in marketing led to massive growth in Coca-Cola. 1894- Coca-Cola opened its first syrup manufacturing plant outside Atlanta in Dallas Texas. Joseph Biedenharn became fist bottler of Coca-Cola in 1894 Mid 1980s, Coca-Cola came back to its roots to concentrate on the soft drink industry. Coca-Cola adopted a product development effort with diet, caffeine-free, and citrus soft drinks introduced POWERADE and Fruitopia in early 1990s.

Coca-Colas Mission
Mission + Commitment = Focus Focus + Action = Results
Mission statement: We exist to create value for our share owners on a long-term basis by building a business that enhances The Coca-Cola Companys trademarks. This is also our ultimate commitment. As the worlds largest beverage company, we refresh that world. We do this by developing superior soft drinks, both carbonated and non-carbonated, and profitable non-alcoholic beverage systems that create value for our Company, our bottling partners and our customers.

Coca-Colas Objectives
Coca-Colas first objective is to maximize share owner value over time. Maximize long-term cash flow To ensure the strongest and most efficient production, distribution, and marketing systems possible

NEED FOR THE STUDY

In the present scenario the competitions between the soft drinks increased very high. The companies are struggling a lot to keep up their market share in the industry and to improve the sales of their products i.e. the turnover of the company. For this the company has to know their position in the market and the opinion and the loyalty of the customers and the retailers when compared to their competitor. Because of this reason the comparative analysis is very important and useful to the Company. By the use of comparative analysis the companies can understand the position of the company and the strength of the company in the market. Through the comparative analysis we can understand that what strategies the competitors are using for the increase their sales volume. From the study we can gather the information regarding the opinion of the retailers on the companies comparatively and this will help to plans for the future to increase the performance of the company and to gain the loyalty of the retailers when compared to the competitors. Through this study the investigator got the personal experience in the market field. He can implement his theoretical knowledge in to practice. He can know how the companies are competing with each other to sustain in the market in this tough competitive world. Hence I felt that there is a need for the study. However, this type of study has not been carried out earlier by any investigator.

OBJECTIVES OF THE STUDY

1. To study the overview of Pepsi Company (Pearl Bottling Pvt. Ltd.). 2. To know and compare the merchandising of Pepsi and Coke in retail outlets. 3. To identify the retailers opinion towards Pepsi products when compared to coke products.

4. To offer some finding and suggestions to the company for the improvement of its performance.

METHODOLOGY
Data which is required for this study will be based on both primary and secondary data. Primary Data: Primary data will be collected from the retailers through a structured questionnaire. It includes the first hand information from the outlets. It can view as a survey. The questionnaire was especially designed to find out the market share of Pepsi and Coke Companies comparatively in these clusters. Through this information we can get the strengths and weaknesses of Pepsi and Coke Companies in those particular clusters. Some of the retailers denied giving the details, then the investigator waited there with patience and collected all the data from that retailers. In the survey the investigator learned a lot and collected the useful information and also got good experience in the market field and came to know many things which are not in our books through this survey. The investigator almost covered all the retail outlets and collected the correct information. Secondary Data: Secondary sources include the information collected from the annual reports, published and unpublished records of the company .various books and journals were referred. Internet was also being used for collecting the relevant data which is not available in the books. Some of the websites are: WWW.pepsiindia.co.in WWW.pepsico.com WWW.indiainfoline.com WWW.scribd.com WWW.oppappers.com After gathering the data from those two sources the data was analyzed and the important information was extracted for the use of study.

Product Mix Width & Product line length for Pepsi India Pvt. Ltd. compared to Coke Company:

Product Mix Width Soft drinks Pepsi Pepsi 7 Up Product Line Length Orange Mirinda Mountain Dew Lemon Mirinda Slice Diet Pepsi Evervess Soda Coke Coca-Cola Sprite Fanta Thumps Up Limca Maaza Diet Coke Kinely Soda Aquafina Kinely Drinking water Pepsi Coke

QUESTIONAIRE
NAME OF THE SHOP/OUTLET.. ADDRESS/ LOCATION.. TYPE OF OUTLET.

A} CONVENTION SHOP B} GROCERIES SHOP C} EATERIES

Q1} Which Brand of soft drinks you deal in A} PEPSI B} COCA COLA C} OTHER D} MIX Q2} WHICH BRAND OF COCA PROVIDES YOU BETTER FACILITY. A} PEPSI B} COCO COLA C} BOTH Q3} How many crates of Pepsi you sell a day A} 1 CRATE B} 2 CRATE C} 3 CRATES D} MORE THAN 3 Q4} which companys signage you have in your outlet A} PEPSI B} COCA COLA C} BOTH D} NO SIGNAGE Q5} which companys visi-cooler you have in your outlet A} PEPSI B} COCA COLA C} BOTH D} OWN E} MIXED

Q6} which medium affects the sales most A} Television B} Magazines/ Newspaper. C} Display D} Wallpapers/ hoardings Q7} Do you think aggressive advertising further increase the sale volume of pepsi A} yes B} no Q8} what kind of promotional activities affects the sale mostly A} free bottle scheme B} prize C} Discount rate D} other Q9} your recommendation for further sales mostly.

Q10} any suggestion for betterment of Pepsi .