CHAPTER 1

2
1.1 INTRODUCTION
3
1.2 SOFT DRINK INDUSTRY
D
1.3 MARKET SIZE AND GROWTH

1.4 SOFT DRINK MARKET AT WORLD LEVEL 7

1.5 SOFT DRINK MARKE1' AT NATIONAL LEVEL

1.6 STATUS OF SOFT DRINK COMPANIES IN INDIAN MARKET 15

1.7 SOFT DRINK MARKET AT STATE LEVEL 16

1.8 SOFT DRINKS - NO HOLDS BARRED IN HARD BOTTLES 18

1.9 FACTORS AFFECTING THE MARKETING OF PEPSI & COKE 20

1.10 PUBLIC PROTEST AGAINST COKE & PEPSI 21
22
1.11 OBJECTIVES'

1.12 STATEMENT OF THE PROBLEM 23
23
1.13 SCOPE OF THE STUDY
23
1.14 AREA OF THE STUDY
24
1.15 PERIOD OF THE STUDY
24
1.16 SAMPLE SELECTION
25
1.17 HYPOTHESIS
1.18 LIMITATIONS OF THE STUDY

25
1.19 GEOGRAPHICAL COVERAGE

26
1.20 FRAME WORK OF ANALYSIS
26
1.21 NATURE OF DATA
26
1.22 SOURCES OF DATA
26
1.22.1 PRIMARY DATA

1.22.2 SECONDARY DATA 26

1.23 METHODS OF DATA COLLECTION 27
27
1.24 STATISTICAL TOOLS USED
27
1.25 CHAPTER SCHEME
 MARKETING OF PEPSI Vs COKE

A COMPARATIVE ANALYSIS WITH SPECIAL

REFERENCE TO KANYAKUMARI DISTRICT

INTRODUCTION AND DESIGN OF THE STUDY

1.1 INTRODUCTION

'Soft Drinks are one of the most popular drinks, which are consumed on

all types of occasions. The demand for soft drinks is increasing day by day due

to changing climatic conditions, liking for fast food and changing culture

(increase western culture). It includes all types of non-alcoholic, carbonated

and flavoured beverages. These artificially sweetened drinks are available in

different flavours, different sizes and in different packages.

Soft drink is a fast moving consumer goods (GMCG). Soft drinks

are consumed for various reasons and in various occasions by consumers based

on various aspects like price, convenience, medicinal value and social status.

The reason behind the study was to highlight the findings of consumer

behaviour towards soft drinks in Kanyakumari District.

Developing urbanization, changing food habits, changing

climatic conditions and increasing population will contribute to growth of soft

drink industries in the near future. Per capita consumption and increase in
number of consumers may be expected in the near future and any of these or

both will result in the growth of the soft drink industry.1

Brands occupy a particular niche in consumer's mind. Powerful

brands influence consumer and so much that it becomes difficult for them to

shift their preference to other product. Coca-cola, pepsi, Limca, Fanta, Maaza

are powerful brands in soft drinks industry. These brands enjoy high brand

equity. In 2003 the cola's turned into weapons of mass destruction as according

to study of centre for Science and Environment (CSE) reported that level of'

pesticides in coke was thirty times more and in case of its rival Pepsi it was

thirty five times more than the level stipulated by European Economic

comlTliSslOfl norms.

In this regard two studies had been conducted to know about

firstly, the comparative analysis of Pepsi & coke in Kanyakumari District and

secondly to know whether Ban on soil drinks had any effect on the consumer

brand loyalty)

1.2 SOFT DRINK INDUSTRY

At the core of the beverage industry is carbonated soft drink

category. Soft drinks ae preferred to any other beverage. Now, its presence is

must in a party, in picnic, in welcoming a guest or any gathering. The history of

soft drink industry could be traced even before World War I. The pioneer of

this industry is coca-cola. Though there are number of soft drinks but the

dominant players in this industry are coca-cola and Pepsi, both U.S based

3
companies. Coca-cola was horn in 1887 and Pepsi in 1898, in India coca-cola

was forced to close its shop in 1970's. Its iyl Pepsi entered Indian Market in

1989. Coca-cola had its second entry into India in 1993. To make its stand in

Indian Market Coca-cola paid about Rs. 175 crores to buy Thums-up, Limca,

Citra and Gold Spot brands.

"Cola wars" keepon expanding. The Pepsi and coca-cola keep

rolling out big guns, dueling film stars, cricketers regional celebrities and new

branded products in the form of 'vanilla coke' and 'Pepsi blue'. The year 2003

was controversial for both Pepsi and coca-cola. They were accusc(l of using

pesticides in their soft drinks. In an effort to tap name segment in order to

recover from this controversy, the companies adopted aggressive advertising

against the pesticidcs report of CSE and also adopting aggressive pricing

strategy. The companies have slashed their prices to all time low ic Rs. 5/- for

200ml, Rs. 8/- 300m1, Rs. 15/- 500111l, Rs. 30 for 1.5 liters and Rs. 35 for .2

liters bottle. Coca-cola in India initiated this cutthroat price war when it

launched its 200ml bottle, Pepsi India was left with no choice and had to follow

suit.

Non-al coholiC soil drinks beverage market can he divided into

soft drinks and fruit drinks. Soft drinks can be further divided into carbonated

and non-carbonated drinks. Cola, lemon and oranges are carbonated drinks

while mango drinks came under non-carbonated category. The soft drinks

market can also be segmented into cola products and non-cola products. Cola

products account for around 60 per cent of the total soft drinks market. The

4
brands that fall in this category are Pepsi, coca-cola, thums up, Diet coke and

Diet Pepsi. Non-cola segment based on flavours are orange, cloudy lime, clear

lime and mango. Orange flavour based soft drinks constitute around 17 percent

of the market. This segment constitutes three percent of the total soft drinks

market. Mango flavour segment constitutes two percent of the total soft drinks

market and it directly competes with mango based fruit drinks like frooti. The

leading brands in this segment are Maaza of coca-cola and slice of Pepsi. Soft

drinks are available in glass bottles, aluminium cans and pet bottles for home

consumption. Fountains also dispense them in disposable containers.

1.3 MARKET SIZE AND GROWTH

Soft drink market size for financial year 2000 was around 270i-nn

cases (6480i-nn bottles). The market, which was witnessing 5-6% growth in the

early 90s and even slower growth at around 2-3% in late '80s. Presently the

rharket growth has slowed down with growth rate of 7-8% per annum

compared to 22% growth rate in the previous year. The market size for the year
4thi
2001 was 7000 million bottles. In the Asian Market India stands at the rank

4(11
in the rating from !nancial years 1996 to 2000. To maintain the position in

the Asian Market India had to consume 207.3 million cases in 1996, 207.3

million cases in 1997, 252.1 million cases in 1998, 269.7 million cases in 1999

and finally 298.5 million cases in the year of 2000. During these years of

continuous market, India had gained an annual growth of 9.5% in the annual

plan, which is more than d:uble of the total Asian market growth of 4.2%.
 Carbonated soft drinks has grown to get the market of Rs. 2000

crore by value in the year 2001, which was a huge amount for any industry and

it is also on the growing form. The market is growing day by day as the

teenagers like soft drinks more than any other conventional drink. We can

further get a view of the cola and non-cola drinks available in the market, as in

the soft drink industry there are different segmentations we can see.

The market size for the year 2001 was 7000rnn bottles. The

market has grown 11.0% in the financial year 200-01 in comparison to the

results of financial year 2001-2002.

on


TABLE NO: 1.1

MARKET SIZE AND GROWTH CHART

Financial Year Production (mn bottles) Growth rate (%)

1995-1996 4000 -
1996-1997 4450 11.3%
1997-1998 4920 9.6%
1998-1999 5670 15.2%
1999-2000 6480 14.3%
2000-2001 7190 11.0%
2001-2002 8150 13.35%
2002-2003 7960 -233%
2003-2004 9250 16.20%
2004-2005 10980 18.70%
Source: Internet Reports

Production Chart
12000

10000

8000

6000

4000

2000

0
00 qA 0
ojb qb
Oj

I—Production (mn bottles)

Figure No. 1
 Growth rate (%)
20.00%

15.00%

10.00%

5.00%

0.00%

'V. . V fr - V V V

Growth rate 1j

Figure No. 2

The growth rate of 22% till last year has got reduced due to high

excise duty of 40% leading to higher price of the end product. Such type of

government policies makes the business down as this directly has an impact on

the selling price of any product, which is not good for a healthy and matured

market.

In Indian market the customers first think about the price, and

then look for the other factors like brand choice, packaging etc. During 2003-

2005 the growth rate was increased.

1.4 SOFT DRINK MARKET AT WORLD LEVEL

The following table shows the figures of Indian partnership in the
growth of the Asian Market Share of soft drink Industry.

8
 TABLE NO: 1.2

SO Fr DRINK MARKET IN ASIA

Production in(Mn Bottles

Volume by country 2001-2005

4-year
Company
2002 2003 2004 2005
Country Rank 2001 Annual
Growth
1332.1 1531.9 1595.7 10.5%
China 1 1070.6 1218.3
639.0 586.2 583.4 5.8%
Philippines 2 466.2 530.8

529.3 535.5 520.0 510.0 506.5
Japan 3
207.3 252.1 269.7 298.5 9.5%
India -2.9%
286.1 299.3 269.1 230.5 254.9
Thailand 5
247.1 232.5 239.5 240.9
South Korea 6 232.4
69.7 92.9 108.1 121.1
Pakistan
96.0 76.6 83.4 115.9
Indonesia
83.5 84.4 77.6 74.2
Taiwan 9 77.1
79.5 85.2 78.3 68.7 65.5
Mala ysia 10
48.9 58.9 59.5 60.8
Vietnam -8.4%
61.1 58.5 60.7 52.1
Hong Kong 12
Singapore

13 33.5 36.5 35.4 34.1 34.3 F 0.7%
41.6 45.8 31.2 26.6 8.3%
Uzbekistan 14 19.3
17.2 20.6 21.4 9.5%
Bangladesh 15 14.9 16.0
21.5 19.2 18.3 19.5 I Q.59
Borneo I
13.9 17.8 17.7 18.8
Sri Lanka 17
12.6 14.5 11.5 10.3
Kazakhstan 18
7.3 8.2 9.4 10.0
AzerbaIan
4.4 5.3 5.8 7.2
Nepal 20
7.7 7,4 6.9 6.6
Geor ai ,,) 21
5.3 5.3 4.9 5.5 l.5%
Guam 22
0.4 1.4 2.4 4.5
Turkmenistan 2
2.3 2.8 - 3.1 3.4
French 24
Polynesia -
2.1 3.3 3.3 3.3 42.7%
Kyray^t an 25 0.8
1.8 1.7 2.0 3.2 12.1%
C an-i bodia 26 2.0
2.7 2.6 2.3 2.6 0.8%
2.5
0.2 1.9. 1.9 2.2 59.1%
TajikisLin 28 U..)
0.0 0.0 0.0 0.0 0.0%
Iran
29 169.4
4.8 0.0 - 0.0 0.0 0.0%
Myanni ar 10.3
3661.0 3886.7 3992.9 4139.6 4.2%
rGrand Total 3514.2
Source : Internet Report5
 4
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 Pepsi is a multi-national company and it is popularly known as Pepsi

Co. International. It is a US based company, but at present it is operating in 195

countries. It's turnover was $31.6 billion in 1996 and ranked twenty first among

fortune 500 US companies. It is a diversified company and it is operating successfully

in soft drinks industry as well as in fast foods and restaurant business.

Coca-cola is the only rival of Pepsi at the International level. As far as

soft drinks market is concerned, coca-cola is ahead of Pepsi. Coca-cola is also a US

based company and at present it is operating in the same countries, where Pepsi is

operating. Coca-cola's turnover was $ 18.5 billion in 1996 and ranked fifty eighth

among fortune 500 U.S companies. Coca-cola has focused itself only on soft-drinks

market. It was coca-cola, which pioneered the soft drinks sector and from very,

beginning, it retains its No-1 position. Coca-cola was born 11 years heR)re Pepsi in

1887. Pepsi was established in 1898. Both have been selling thirst quenches for 100

years that are now global brands.

three serving is
By world standards, India's per capita consumption of '

rock bottom, less even than our neighbours Pakistan and Bangladesh. If demand

continues to increase annually at an average of 20% then volumes could reach I

billion cases within 8 years. One case is equivalent to 24 bottles of 300rn1 each.2

11
1.5 SOFT DRINK MARKET AT NATIONAL LEVEL

3 1ndia is one of the largest markets for soft drinks in the world. At least

not less than 7 billion bottles of cold drinks are sold in a year. The two soft drink

giants coca-cola and Pepsi account for more than 90% of the carbonated drinks market

in India. Pepsi entered India in 1989 and two years later coca-cola started their

operations in India. Since then the two giants are pumping in crores and crores to take

upper hand in the country's soft drinks market. Even indigenous brands like gold spot

have been incorporated into their domain by outright purchase. The cola and Pepsi

reigned over the market as unquestioned, unrivalled masters.

Having understood the wide potential for soft-drinks market in India.

both the companies started fighting a war on each other to strategically position their

product. From time to time bottles change was made in the product relating to the

flavour, size packaging etc. to cater to the changing needs of the customers. Studies

show that people consume bottle drinks not just for quenching thirst but as a lifestyle

product.

The sales for the soft drinks, which went up steeply, suddenly fell after

the stormy news that drinking soft drinks is harmful. The finding of Delhi based NGO,

The Centre for Scienec and Fnvironincnt (CSE) revealed that a dozen of popular

brands of coca-cola and Pepsi contain a deadly cocktail of pesticide residues, which

could cause cancer, damage the nervous and reproductive systems and even affect the

immune system. The media was so effective that even those who have not heard of

12
Pepsi and coca-cola have started talking about this news and advised their near ones

not to consume such bottle drinks.

The sales of bottles have suddenly fallen after this allegation. Though

one segment of people stopped drinking these soft-drinks due to the physical risks

involved, there is another segment the few who still consume such bottled drinks. The

present study has made an attempt to find out the profile of such consumers and the

reasons for their consumption. Are they really loyal or they are not aware of the hue

and cry are the questions that are probed.3

TABLE NO: 1.3

SOFT DRINK MARKET IN INDIA

Volume by Brand Annual Growth %

Coca-Cola 89.44

Pepsi 77.00

Thumps-up 26.75

Miranda 55.08

F anta -2.15
-2.92
Lp 52.06
All other brands
Source Internet Reports

13
 SOFT DRINK MARKET IN INDIA

7 up

i-Cola
5%

humps-up
11%

Pepsi
30%

0 Coca-Cola 0 Pepsi 0 Thumps-up 0 Miranda 0 Fanta07 up]

F

Figure No. 4

1.6 STATUS OF SOFT DRINK COMPANIES IN INDIAN MARKET

Coca-cola and Pepsi are the two major players of the Indian soft drink

industry, where both are trying to lead the market by the means of market share, in the

industry. Coca-cola is on the top demand and Pepsi is its arch rival. In the rural or

interior parts of the country both companies are holding their monopoly in area.

Where the companies are ruling the market in terms of sales figures.

14
 TABLE NO: 1.4

STATUS OF SOFT DRINK COMPANIES IN INDIAN MARKET

Coca Cola PepsiCo

(cola, Thums-up, Fanta, Maaza (Mirinda, 7-up, Limea
Rs. 1 792bn Rs. 1260bn
Turnover
Beverage sales Rs. 720 bn Rs. 450 bn
International sales 70% 32%
at % of total sales
Package Variations Bottle-200,, l, 300rn1, SOOmI, Bottle-200ml, 300ml,
1 litre, 1.5 litre 1 litre, 1.5 litre
Cans-330m1 Fountain Cans-330ml Fountain
DisDensers Dispensers
Investment in India Market share 30( yob\, volume)
Rs. 250 bn Rs. 200bn

New Investment Rs. 440 bn Rs. 300bn

Source : Indian Journal of Marketing,Vol :XXXIII.

The study of the above table soft drink market in India production figures (in

million bottles).lt becomes essential to analyse the production growth or inclination in

the production quantity of the coke company limited, Pepsi co Limited and other

brand companies since 2001 to 2005. One can have a look on the coke company

limited production figures, which includes the consolidated figures of coca-cola,

thums-up and fanta contributing with 1857 mn bottles, 561 inn bottles and 661 mn

bottles respectively 'III year 01 2004-2005 and graded for the 1

st , 0', 3rd position
towards the contribution of the total production of 4,450 million bottles of soft drink

industry in the same year.

15
1.7 SOFT DRINK MARKE T AT STATE LEVEL
Rural India constitutes three fourth of the country's population and is

characterized by low level of income and poor quality of life. The main occupation in

uting around 27% to the India's GDP. There is a

these area is agriculture contrib

rapidly growing, •focus on the rural sector because of the tremendous business

opportunity it provides the huge population in the rural sector with an impressive

percentage of it coming under the consumer class category presents a vast market with

immense potential for corporate. The consumption pattern of rural pattern of rural

India with regard to soft drinks was indeed changing and the rural masses were

changing over to branded soft drinks as compared to their unbranded counter parts.

Brand identifies the product and reveals the facets of its differences, functional value,

pleasure value and symbolic value as a reflection of the buyer's self-image. Brand

awareness leads to preference and brand equity is the intrinsic value to the corporate.

The hot and humid climate of Tamil Nadu is favourite hunting ground

for soft drinks market in India. The soft drinks in Tamil Nadu constitute an important

market for both coke and pepsi because it contributes upto eight percent of their total

sales on an all India level. A study was undertaken to identity the popular brands of

soft drinks and the factors that contribute to the purchase of it in the rural area of

Tamil Nadu.

16


Soft Drink Market in Tamilnadu

Volume by Brand

2000-2005 Production (Mn Bottles)

2000-01 2001-02 1 2002-03 2003-04 2004-05

2000- 2001- 2002- Total Rank 2004- Total Rank
Brand Total Rank 02 Total Rank 03 Total Rank 2003-
04
01 05
Coke
Cocacola 1673 1 2163 1 2357 1 2520 1
1857 1
Thums 4 851 3532 4 1009 3847 3 1110 3967 3 1543 4557 3
UP 3079 3 675 4 500 4 474 5
1008
Fanta
Pepsi
Pepsi 1071 2 1019 2 1227 2 1662 2 1854 2
Mirinda 127 1264 5 181 1278 5 320 1648 5 467 2173 5 588 2472 4
7-up 66 7 78 7 101 7 44 7 30 7
Others 107 107 6 110 110 6 175 175 6 340 340 6 181 181 6
Grand 5670 6480 7190
4 450 4920
Total
Source: Internet Report

5000

4500

4000

3500

3000

2500

2000

1500

1000

500

2000-01 2001-02 2002-03 2003-04 2004-05

doke 0 Thums up 0 Fanta 0 Coke Total 0 Pepsi 0 Mirinda 07-up 0 Pepsi Total DOthers

Figure No. 5

17
1.8 SOFT DRINKS - NO HOLDS BARRED IN HARD BOTTLES

"Pepsi and Coca Cola have overpowered the soft drinks market of this

country. But the companies have pleaded for reduced excise duty. The National

council or Applied Economic Research (NCAER) has supported their viewpoint. In its

view, lower excise duty would stimulate the consumption of soft drinks and would

through up increased tax revenue for the government. State the author: "The future of

this industry lies in bringing down prices of soft drinks through government help".

The Rs. 50,000 million soft drinks industry admits tough competition.

This is understandable because of the huge size of the country's population (1,000

million) and the increasing size of the middle class. The soft drinks industry in India

really took off in 1972. The industry employs 125,000 people and is one of the single

largest contributors of foreign direct investment estimated at $1 billion. The soil

drinks industry provides support to other industries such as recreation, glass, plastics

and transport services.

Soft drinks generally refer to carbonated flavoured/sweet beverages.

They also include water based beverages. Cholas, which belong to the former

category, contribute the Indian market. Despite nutritional value of milk and based

drinks, soil drinks based synthetic flavouring remain popular name they can he

distributed in sealed form and without refrigeration, whereas milk and fruit based

require aseptic packaging and refrigeration. There is no shelf limitation for synthetic

soft drinks of course; soft drinks popularity is due to intensive marketing campaigns.

18
 The century-old Coca-Cola and in decade-old Pepsi have been entered in fierce

battle. The real battle is most visible during the cricket match. While Coke beat Pepsi

illion (compared to the latter's to 6 million)

to be world cup rights with its bid of 9 m

in 1996, Pepsi managed to bag a three-year sponsor for the triangular series in till

2000. Each company now is celebrity centered.

In the soft drinks field, no company can claim market leadership long

because of intense competition. In 1993, Coke was clearly to top as it acquired market

leader thumbs Up. But, later, Pepsi had men up the leadership. By 1998, Pepsi

commanded a quarter of the all India soft drinks market.

Like Pepsi Coke has started sponsoring local events and staging frequent

consumer promotion campaigns. It is also depending more on local created

advertisement. The company has introduced discounts at restaurants and even display

contests as part of its new promotion strategy.

It is learnt that soft drinks manufactured in India under various brand

names are bottled and sold abroad with different brand names. In recent years, there

has been a gradual shift in many countries from the established fun and pleasure drink

Cola to fruit-based soft drinks. ilicreibre, in so Far as exports are concerned, emphasis

must be laid on fruit-based drinks.

Both Coke and Pepsi feel that they are discriminated against, with excise

duties imposed on them being far in excess of related goods and commodities. This is

unjustified because soft drinks have become popular even among the lower and

19
middle classes. While the soft drinks are subject to an excise duty of 40 per cent, the

duty for sugar cont'ectioflarY. biscuits. caLes. squash. jams, soups, sauces and h'uit -

based drinks is only eight per cenL

Product like chocolates, pkta, corn [lakes, ice cream, instant coffee,

mineral water. and chewing gum attract duties of 16 per cent. Products like cosmetics

TVs refrigerators, toilet soaps and

and air conditioners attract 30 per cent duty,

performed hair oil carry a duty of 16 per cent. Certainly, soft drinks are not more

elitist than these products.

The soft drinks industry is highly price-sensitive. Despite increase in

taxes and prices of raw materials, both Coco Cola and Pepsi are not in a position to

raise the prices of their products. It is estimated that a 10 per cent increase in price

brings demand down by 17.6 per cent . The menace of spurious drinks is still there. In

fact, the unorganized sector in the drinks is contributing more than the organized

sector. The former does not pay excise, sales tax Act.

1.9 FACTORS AFFECTING THE MARKETING OF PEPSI & COKE

The centre for science and environment (CSE) rattled the 1.2 billion
3

soft drinks market in India by alleging that a dozen popular brands of Coco Cola and

Pepsi sold in the country contained a deadly Cocktail of Pesticide residues. The image

which the two giants created over their brands was spoiled over a night aid the sales

uddenly. It is even expected to fall in the future. It is q u ite

of bottled drinks has fallen s
who still continue to bu y such
interesting to observe that, there are fe\v customers

bottled drinks and consume it.3

20
1.10 PUBLIC PROTEST AGAINST COKE & PEPSI

4 Residents of a dusty village kaladera near Jaipur have oincd hands

against the multinational soft drinks coca-cola, accusing it of indiscriminatelY

exploiting ground water reserves For its bottling plant situated here. The water table in

the region has fallen to an alarming 125 Feet over the past decade.

For coca-cola, this is the second major protest coming on the heels of

mass agitations in Kerala. The villagers anger here may take a serious turn even as the

company is embroiled in a legal battle with social and environmental organizations in

Kerala. The coca-cola factory in the Kaladera Industrial area of Rajasthan was set up

in 1999 as part of the state government's drive to attract foreign investment. The

villages with a scanty annual rainfall of 50 cm have

villagers claim that as may as 50
years mainly because of coca-cola
been facing a severe water crisis for the past 5

draining out ground water.4

The sales for the soft-drinks which went up steeply. Suddenly fell after

the stormy news that drinking soft-drinks is harmful. The finding of Delhi based

NGO, The Centre for Science and Environment (CSE) revealed that a dozen of

popular brands of coca-cola and Pepsi contain a deadly cocktail of Pesticide residues,

which could cause cancer, damage the nervous and reproductive systems and even

affect the immune system. The media was so effective that even those who have not

heard of Pepsi and coca-cola has started talking about this news and advised their near

ones not to cOfl5UIT1C such bottle drinks.

21
 The Sales of' hofllcs have suddenly Fallen after this allegation. Though one

segment of people stopped drinking these soft-drinks due to the physical risks

involved, there is another segment. the lw who still consume such bottled drinks. The

present study has made an attempt to lnd out the profile of such consumers and the

reasons for their eoflSUn1pt1011.

1.11 OBJECTIVES
To analyse the socio-economic profile of the consumers against various
i)
brands mainly of Pepsi and Coke co, in Cola flavour and non-cola flavour.

To study the different segments of soft drink market in Kanyakumari

ii)

District.

To find out the factors affecting the marketing of Pepsi & Coke.

To find out the shift in preference if any, due to Ban.

iv)

To analyse the consumers preferences towards Pepsi & Coke.

v)
tools - Product,
To make out a comparative analysis of different marketin g
vi)

Price, Promotion and Physical distribution of Pepsi & Coke.

To suggest measures to improve marketing strategies of Pepsi & Coke.

vii)

22
1.12 STATEMENT OF THE PROBLEM

['he Pepsi and Coke Company have the largest network in Kanyakumari

District. It aims to improve the distribution effect i venessand explore the preferences

of the retail outlets. The outlets bridge the gap between the consumer and the dealers.

The ineffective distribution will lead the companies to out of stock and create

dissatisfaction among the retail outlets and consequently, this leads to dissatisfaction

among customers. In order to ensure the distribution system and build good

relationship between customer and retail variables namely frequency of supply,

satisfaction of retailers, supply pattern and problem faced by the retailers are to be

received now and then. Besides, the researcher is interested in the study of

distribution system which leads to the present research.

1.13 SCOPE OF THE STUDY

This study confined to Marketing of Pepsi Vs Coke a comparative

analysis with special reference to Kanyakuiflari District. This study is an attempt to

analyze the awareness of soft drinks, problem faced by the consumers and examine

the factors which influence the soft drinks.

Li

1.14 AREA OF THE STUDY

Dist rict has been selected as the area of the study.
Kanyakumari

Kanyakumari District has been divided into four zones. They are Kanyakumari

Nagercoil, Thuckalay and Marthandam. Among the four zones the study mainly

2?
covers Nagercoil zone, because there are more number of' retail outlets compared to

other zones.

1.15 PERIOD OF THE STUDY

The sample survey was conducted during the year 2004-2005.

1.16 SAMPLE SELECTION

7
There are 3400 retail outlets of soft drinks products in all the four zones

of Kanyakurnari District.

It is decided to have 200 respondents, sample size which is 5.88% of the

total universe. In each zone sample units are selected at random by use of simple

random sampling method. The table given below exhibits, universe and the sample

size

TABLE NO: 1.6

Source : Primary data

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1.17 HYPOTHESIS

i) Advertisement and promotional activities of the company play a primary

role to have effective distribution system.

ii) Credit facility extended by the company is not a significant factor in

creating effective distribution system.

1.18 LIMITATIONS OF THE STUDY

i) The study limits itself to only the distribution effectivenes" q Sft drinks

products in selected areas of Kanyakumari District.

Since the study was undertaken for a stipulated period. The predi

mentioned here may vary and due considerations have to be given to

factors also while making decision based on this research work.

U1. L11V
iii) Any study based on sample survey, whatever the nature and size

sample can only be suggestive and prescriptive.

iv) Due to the time and cost constraint the study is restricted to a period of one

year.

1.19 GEOGRAPHICAL COVERAGE

The area of operation is Kanyakumari District and the information has

been collected from Customers, Hotels, Super Market, Restaurant, Street Shop etc.

They are the respondents and located in Kanyakurnari District.

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1.20 FRAMEWORK OF ANALYSIS
The collected data are processed and then tabulated. Besides charts,

graphs and like, the following formula is used Chi-square Test.

L(oE)2J.

x2= E

1.21 NATURE OF DATA

The study was based on both primary data and secondary data.

1.22 SOURCES OF DATA

1.22.1 PRIMARY DATA

The retail outlets were the primary source of Information at whom the

actual study was targeted.

1.22.2 SECONDARY DATA

The study also made use of the secondary data collected from the websites

related to Pepsi Company, from the publication of Government and also from the

Journals, reports of related reputed organization.

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1.23 METHODS OF DATA COLLECTION

Primary data were collected using a structured Interview Schedule. Both

closed and open-ended questions were used in the Interview Schedule in order to elicit

necessary information.

Before finalizing the Interview Schedule, the researcher conducted a

pre-test with 100 retail outlets in order to determine the efficiency of the tool and

thereafter necessary modifications were made in the interview schedule.

1.24 STATISTICAL TOOLS USED

The collected data were tabulated and analysed by using the SPSS

package (Statistical Package for Social Sciences). It includes the following analysis

namely, Chi-Square analysis, Percentage method.

1.25 CHAPTER SCHEME

The report of the study is divided and organised in five chapters.

CHAPTER-1 Explains the Introduction Market size and Growth, Factors,

Objectives, and Methodology of the study.

CHAPTER-11 Explains Dcerminants of Health, Level of Health care and

Review of Literature on Soft Drinks.

CHAPTER-Ill Deals with Profile of Pepsi Company and Coke Company in

Kan y akumari District and includes Historical backgrounds.

Financial Highlights and Segmentation of Soft Drink Industry.

27
CHAPTER-IV Analyses the Marketing of Pepsi Company and Coke Company

which inciujes Price, Promotion. Physical distribution and also

analyse the popular brands, Factors influencing brand preference,

Awareness of' Ban and New Brands adopted by the Respondents.

CHAPTER-V Spells out the broad Summary of Findings, Suggestion of the

study and also provides the Conclusion, Areas for Future Studies,

Bibiliograpy and Questionnaire of the study.

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FOOD NOTES

1. Dr. R. Sampath Kumar, Indian Journal of Marketing, Vol.XXXIII, No.2

1`62003, p.6.

2. WWW.SoftDrinkS.2Pi

3. P. Selva Raj and S. John Mano Raj, Multi-Disciplinary National

Seminar of Scott Research Forum, Vol-I, p.1 I7-119.

4. India Today, Vol. XXVII, Nov 2002, p.39-40.

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