MINOR PROJECT REPORT SUBMITTED TOWARDS THE PARTIAL FULFILLMENT

OF

BACHELOR OF BUSINESS ADMINISTRATION

MINOR PROJECT REPORT

On

Comparative Analysis Between PepsiCo & Coca

Cola
BATCH: 2015-2018

Submitted By:
Guide:
Name: Neha Nair
Mansi Chandha
Enrolment No: 01720601715
Designation: Assistant Professor

Project
Name:

Trinity Institute of Professional Studies

Affiliated to Guru Gobind Indraprastha University, New
Delhi
1

DECLARATION
I hereby declare that the following documented Project
report title Comparative analysis between
PepsiCo and Coca Cola is an original and authentic
work done by me for the partial fulfilment of Bachelor
of Business Administration degree program.
I hereby certify that all the Endeavours put in the
fulfilment of the task were genuine and original to the
best of my knowledge & I have not submitted it earlier
elsewhere.

CERTIFICATE
This is to certify that the project work Comparative
Analysis Between PepsiCo and Coca Cola made
by NEHA NAIR of BBA General 3rd SEMESTER,
Enrolment Number: 01720601715 is an authentic
work carried out under her guidance and supervision of
Ms Mansi CHANDHA.
This Project report submitted has been found
satisfactory for the partial fulfilment of the degree
Bachelor of Business Administration

M/S Mansi CHANDHA

(Signature)

ACKNOWLEDGEMENT
It is in particular that I am acknowledging my sincere
thanks towards my mentor who graciously gave me
their time and expertise.
They have provided me with the valuable guideline,
sustained efforts and 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
Project Supervisor: Ms. Mansi CHADHA 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

Soft drink industry

SOFT DRINK INDUSTRY, the production, marketing, and distribution of non-alcoholic, and
generally carbonated, flavoured, and sweetened, water-based beverages. The history of soft
drinks in the United States illustrates important business innovations, such as product
development, franchising, and mass marketing, as well as the evolution of consumer tastes
and cultural trends.
Many Europeans long believed natural mineral waters held medicinal qualities and favored
them as alternatives to often-polluted common drinking water. By 1772, British chemist
Joseph Priestley invented a means to synthetically carbonate water, and the commercial
manufacturing of artificial mineral waters began with Jacob
The history of Coca-Cola reveals how national markets in soft-drink brands developed. To
limit the cost of transportation, manufacturers of syrup concentrates licensed bottlers to mix
the product, package, and distribute it within a specific territory. Candler underestimated the
importance of the bottling side of the business and in 1899 sold the national rights to bottle
Coke for a fairly small sum to Benjamin F. Thomas and Joseph B. Whitehead, who then
started a national network of bottlers, creating the basic franchising format by which the
industry is still run.
Candler and his successor after 1923, Robert Woodruff, were aggressive and innovative in
marketing Coke as a leading consumer product and cultural icon. Coupons for free samples
and giveaways of items bearing the drink's name and logo publicized the beverage, and
pioneering efforts in market research helped define how best to take advantage of advertising
and promotions. During World War II, Woodruff opened bottling operations overseas to
supply U.S. military personnel, and after the war, Coke was poised to enter these
international markets, not only as a consumer product, but also as a symbol of "the American
Century."
After World War II, the soft-drink industry became a leader in television advertising, the use
of celebrity endorsements, catchy slogans, tie-ins with Hollywood movies, and other forms of
mass marketing, particularly focusing on young consumers and emphasizing youth-oriented
themes. As health and fitness consciousness and environmental awareness became popular,
the industry responded with sugar-free and low-calorie diet sodas, beginning in the 1960s,
and later, caffeine-free colas and recyclable containers.

The most famous rivalry within the industry has been between Coke and Pepsi, which waged
two rounds of "cola wars" in the twentieth century. In the 1930s and 1940s, Pepsi challenged
the industry leader by offering a twelve-ounce bottle for the same five-cent price as Coke's
standard six ounces. In the 1970s and 1980s, "Pepsi challenge" taste-tests led Coke to change
its formula in 1985, a campaign that failed because it underestimated the attachment Coke
drinkers had to the tradition and symbolism of the brand.
In 2001, the soft-drink industry included approximately five hundred U.S. bottlers with more
than 183,000 employees, and it achieved retail sales of more than $61 billion. Americans that
year consumed an average of 55 gallons of soft drinks per person, up from 48 in 1990 and 34
in 1980. The nine leading companies accounted for 96.5 percent of industry sales, led by
Coca-Cola with more than 43 percent of the soft drink market and Pepsi with 31 percent.
Seven individual brands accounted for almost two-thirds of all sales: Coca-Cola Classic
(itself with nearly 20 percent of the market), Pepsi-Cola, Diet Coke, Mountain Dew (a Pepsi
product), Sprite (a Coca-Cola product), Dr. Pepper, and Diet Pepsi. Domestic sales growth
slowed in the late 1990s because of increased competition from coffee drinks, iced teas,
juices, sports drinks, and bottled waters. The industry continues, however, to tap lucrative
international markets; Coke and Pepsi each have bottling operations in more than 120
countries.

View of PepsiCo's Global headquarters building, New York

Type

Public

Traded as

NYSE: PEP
S&P 500 Component

Industry

Beverages
Food processing

Founded

August 28, 1898; 117 years ago

New Bern, North Carolina,U.S.

Founders

Caleb Bradham
Donald Kendall
Herman Lay

Headquarters

Purchase, New York, U.S.

Area served

Worldwide

Key people

Indra Nooyi
(Chairman and CEO)

Products

See list of PepsiCo products

Revenue

US$63.056 billion (2015)[1]

PepsiCo products are enjoyed by consumers one billion times a day in more than 200
countries and territories around the world. PepsiCo generated more than US $63 billion
dollars in net revenue in 2015, driven by a complementary food and beverage portfolio that
includes Frito-Lay, Gatorade, Pepsi-Cola, Quaker and Tropicana. PepsiCo's product portfolio
includes a wide range of enjoyable foods and beverages, including 22 brands that generate
more than US $1 billion dollars each in estimated annual retail sales.
At the heart of PepsiCo is Performance with Purpose our goal to deliver top-tier financial
performance while creating sustainable growth and shareholder value. In practice,
Performance with Purpose means providing a wide range of foods and beverages from treats
to healthy eats; finding innovative ways to minimize our impact on the environment and
reduce our operating costs; providing a safe and inclusive workplace for our employees
globally; and respecting, supporting and investing in the local communities where we
operate.
As of January 26, 2012, 22 of PepsiCo's brands generated retail sales of more than $1 billion
apiece, and the company's products were distributed across more than 200 countries, resulting
in annual net revenues of $43.3 billion. Based on net revenue, PepsiCo is the second largest
food and beverage business in the world. Within North America, PepsiCo is the largest food
and beverage business by net revenue.

Indira Krishnamurthy Nooyi has been the chief executive of PepsiCo since 2006. The
company's beverage distribution and bottling is conducted by PepsiCo as well as by licensed
bottlers in certain regions. Approximately 274,000 employees generated $66.415 billion in
revenue as of 2013.

Leadership through Performance with Purpose PepsiCo entered India in 1989 and in a short
period, has grown into one of the largest MNC food and beverage businesses in the country.
PepsiCos growth in India has been guided by Performance with Purpose, its goal to deliver
top-tier financial performance while creating sustainable growth and shareholder value.
8

PepsiCo India is driven by its global commitment to sustainable growth, Performance with
Purpose, which works on four planks of replenishing water, partnering with farmers, waste to
wealth and healthy kids. In 2009, PepsiCo India achieved a significant milestone, by
becoming the first business to achieve Positive Water Balance in the beverage world, a fact
verified by Deloitte Touch Tohmatsu India Pvt. Ltd. The company has been Water Positive
since then.

Company History
PepsiCo, Inc. is one of the world's top consumer product companies with many of the world's
most important and valuable trademarks. Its Pepsi-Cola Company division is the second
largest soft drink business in the world, with a 21 per cent share of the carbonated soft drink
market worldwide and 29 per cent in the United States. Three of its brands--Pepsi-Cola,
Mountain Dew, and Diet Pepsi & mdashe among the top ten soft drinks in the U.S. market.
The Frito-Lay Company division is by far the world leader in salty snacks, holding a 40 per
cent market share and an even more staggering 56 per cent share of the U.S. market. In the
United States, Frito-Lay is nine times the size of its nearest competitor and sells nine of the
top ten snack chip brands in the supermarket channel, including Lay's, Doritos, Tostitos,
Ruffles, Fritos, and Cheetos. Frito-Lay generates more than 60 per cent of PepsiCo's net sales
and more than two-thirds of the parent company's operating profits. The company's third
division, Tropicana Products, Inc., is the world leader in juice sales and holds a dominant 41
per cent of the U.S. chilled orange juice market. On a worldwide basis, PepsiCo's product
portfolio includes 16 brands that generate more than $500 million in sales each year, ten of
which generate more than $1 billion annually. Overall, PepsiCo garners about 35 per cent of
its retail sales outside the United States, with Pepsi-Cola brands marketed in about 160
countries, Frito-Lay in more than 40, and Tropicana in approximately 50. As 2001 began,
PepsiCo was on the verge of adding to its food and drink empire the brands of the Quaker
Oats Company, which include Gatorade sports drink, Quaker oatmeal, and Capon Crunch,
Life, and other ready-to-eat cereals.

When Caleb D. Bradham concocted a new cola drink in the 1890s, his friends' enthusiastic
response convinced him that he had created a commercially viable product. For 20 years,
'Doc' Bradham prospered from his Pepsi-Cola sales. Eventually, he was faced with a
dilemma; the crucial decision he made turned out to be the wrong one and he was forced to
sell. But his successors fared no better and it was not until the end of the 1930s that PepsiCola again became profitable. Seventy years later, PepsiCo, Inc. was a mammoth
multinational supplier of soft drinks, juices, and snack food. PepsiCo's advance to that level
was almost entirely the result of its management style and the phenomenal success of its
television advertising.

10

PepsiCo, Inc. was established through the merger of Pepsi-Cola and Frito-Lay. Pepsi-Cola
was created in the late 1890s by Caleb Bradham, a New Bern, N.C. pharmacist. Frito-Lay,
Inc. was formed by the 1961 merger of the Frito Company, founded by Elmer Doolin in 1932,
and the H. W. Lay Company, founded by Herman W. Lay, also in 1932. Herman Lay, former
chairman and CEO of Frito-Lay, was chairman of the board of directors of the new company;
Donald M. Kendall, former president and CEO of Pepsi-Cola, was president and chief
executive officer. The new company reports sales of $510 million and has 19,000 employees.
Major products of the new companies are:
Pepsi-Cola Company: Pepsi-Cola (formulated in 1898), Diet Pepsi (1964) and Mountain Dew
(introduced by Tip Corporation in 1948).
Frito-Lay, Inc.: Fritos brand corn chips (created by Elmer Doolin in 1932), Lay's brand potato
chips (created by Herman W. Lay in 1938), Cheetos brand cheese flavored snacks (1948),
Ruffles brand potato chips (1958) and Rold Gold brand pretzels (acquired 1961).

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Coca-Cola's corporate headquarters in Atlanta, Georgia, United States

Type

Public

Traded as

NYSE: KO
Dow Jones Industrial Average Component
S&P 500 Component

Industry

Beverage

Founded

May 8, 1886; 130 years ago

Atlanta, Georgia, U.S.

Founder

Asa Griggs Candler

Headquarters

One Coca-Cola Plaza,

Atlanta, Georgia, United States

Area served

Worldwide Except Cuba andNorth Korea

Key people

Muhtar Kent

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(Chairman and CEO)

James Quincey

About The Coca-Cola Company The Coca-Cola Company (NYSE: KO) is the world's largest
beverage company, refreshing consumers with more than 500 sparkling and still brands and
more than 3,800 beverage choices. Led by Coca-Cola, one of the world's most valuable and
recognizable brands, our companys portfolio features 20 billion-dollar brands, 18 of which
are available in reduced-, low- or no-calorie options. Our billion-dollar brands include Diet
Coke, Coca-Cola Zero, Fanta, Sprite, Dasani, vitaminwater, Powerade, Minute Maid, Simply,
Del Valle, Georgia and Gold Peak. Through the world's largest beverage distribution system,
we are the No. 1 provider of both sparkling and still beverages. More than 1.9 billion servings
of our beverages are enjoyed by consumers in more than 200 countries each day. With an
enduring commitment to building sustainable communities, our company is focused on
initiatives that reduce our environmental footprint, create a safe, inclusive work environment
for our associates, and enhance the economic development of the communities where we
operate. Together with our bottling partners, we rank among the world's top 10 private
employers with more than 700,000 system associates. For more information, visit Coca-Cola,
follow us on Twitter, visit our blog, Coca-Cola Unbottled,or find us on LinkedIn
Coca-Cola India, is one of the countrys leading beverage companies, offering a range of
healthy, safe, high quality, refreshing beverage options to consumers. Over the last 23 years,
ever since its re-entry in 1993, the company has gone on to establish an unmatched portfolio
of beverages; refreshing consumers with its leading beverage brands like Coca-Cola, CocaCola Zero, Diet Coke, Thums Up, Fanta, Fanta Green Mango, Limca, Sprite, Sprite Zero,
VIO Flavored Milk, Maaza, Minute Maid range of juices, Georgia and Georgia Gold range of
hot and cold tea and coffee options, Kinley and Bonaqua packaged drinking water, Kinley
Club Soda and BURN energy drink. The Company along with its bottling partners, through a
strong network of over 2.6 million retail outlets, touches the lives of millions of consumers.
Its brands are some of the most preferred and most sold beverages in the country.

The Coca-Cola system in India has already invested USD 2 Billion till 2011, since its re-entry
into India. The company will be investing another USD 5 Billion till the year 2020. The
Coca-Cola system in India directly employs over 25,000 people including those on contract.
The system has created indirect employment for more than 1,50,000 people in related
industries through its vast procurement, supply and distribution system. We strive to ensure
that our work environment is safe and inclusive and that there are plentiful opportunities for
our people in India and across the world.
With an enduring commitment to building sustainable communities, our Company is focused
on initiatives that reduce our environmental footprint, support active, healthy living, create a
safe, inclusive work environment for our associates, and contribute to the development of the
communities where we operate.
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Company history
Coca-Cola history began in 1886 when the curiosity of an Atlanta pharmacist, Dr. John S.
Pemberton, led him to create a distinctive tasting soft drink that could be sold at soda
fountains. He created a flavored syrup, took it to his neighborhood pharmacy, where it was
mixed with carbonated water and deemed excellent by those who sampled it. Dr.
Pembertons partner and bookkeeper, Frank M. Robinson, is credited with naming the
beverage Coca-Cola as well as designing the trademarked, distinct script, still used
today.The first servings of Coca-Cola were sold for 5 cents per glass. During the first year,
sales averaged a modest nine servings per day in Atlanta. Today, daily servings of Coca-Cola
beverages are estimated at 1.9 billion globally.
Prior to his death in 1888, just two years after creating what was to become the worlds #1selling sparkling beverage, Dr. Pemberton sold portions of his business to various parties,
with the majority of the interest sold to Atlanta businessman, Asa G. Candler. Under Mr.
Candlers leadership, distribution of Coca-Cola expanded to soda fountains beyond Atlanta.
In 1894, impressed by the growing demand for Coca-Cola and the desire to make the
beverage portable, Joseph Biedenharn installed bottling machinery in the rear of his
Mississippi soda fountain, becoming the first to put Coca-Cola in bottles. Large scale bottling
was made possible just five years later, when in 1899, three enterprising businessmen in
Chattanooga, Tennessee secured exclusive rights to bottle and sell Coca-Cola. The three
entrepreneurs purchased the bottling rights from Asa Candler for just $1. Benjamin Thomas,
Joseph Whitehead and John Lupton developed what became the Coca-Cola worldwide
bottling system.
Among the biggest challenges for early bottlers, were imitations of the beverage by
competitors coupled with a lack of packaging consistency among the 1,000 bottling plants at
the time. The bottlers agreed that a distinctive beverage needed a standard and distinctive
bottle, and in 1916, the bottlers approved the unique contour bottle. The new Coca-Cola
bottle was so distinctive it could be recognized in the dark and it effectively set the brand
apart from competition. The contoured Coca-Cola bottle was trademarked in 1977. Over the
years, the Coca-Cola bottle has been inspiration for artists across the globe a sampling of
which can be viewed at the World of Coca-Cola in Atlanta. Check out a preview of the latest
art exhibit.
The first marketing efforts in Coca-Cola history were executed through coupons promoting
free samples of the beverage. Considered an innovative tactic back in 1887, couponing was
followed by newspaper advertising and the distribution of promotional items bearing the
Coca-Cola script to participating pharmacies.
Fast forward to the 1970s when Coca-Colas advertising started to reflect a brand connected
with fun, friends and good times. Many fondly remember the 1971 Hilltop Singers
performing Id Like to Buy the World a Coke, or the 1979 Have a Coke and a Smile
commercial featuring a young fan giving Pittsburgh Steeler, Mean Joe Greene, a refreshing

14

Competitive analysis between Coca-Cola and Pepsi co.

Mission & vision
Mission of PepsiCo
As one of the largest food and beverage companies in the world, our mission is to provide
consumers around the world with delicious, affordable, convenient and complementary foods
and beverages from wholesome breakfasts to healthy and fun daytime snacks and beverages
to evening treats. We are committed to investing in our people, our company and the
communities where we operate to help position the company for long-term, sustainable
growth.

Mission of Coca-Cola
Our Roadmap starts with our mission, which is enduring. It declares our purpose as a
company and serves as the standard against which we weigh our actions and decisions.

To refresh the world...

To inspire moments of optimism and happiness...

To create value and make a difference.

Vision of PepsiCo
At PepsiCo, we're committed to achieving business and financial success while leaving a
positive imprint on society delivering what we call Performance with Purpose.
In practice, Performance with Purpose means providing a wide range of foods and beverages
from treats to healthy eats; finding innovative ways to minimize our impact on the
environment and reduce our operating costs; providing a safe and inclusive workplace for our
employees globally; and respecting, supporting and investing in the local communities where
we operate.

Wherever we do business, Performance with Purpose is our guide. We believe that delivering
for our consumers and customers, protecting the environment, sourcing with integrity and
investing in our employees are not simply good things to do, but that these actions fuel our
returns and position PepsiCo for long-term, sustainable growth.

15

Vision of coca-cola
Our vision serves as the framework for our Roadmap and guides every aspect of our business
by describing what we need to accomplish in order to continue achieving sustainable, quality
growth.

16

People: Be a great place to work where people are inspired to be the best they can be.

Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and
satisfy people's desires and needs.

Partners: Nurture a winning network of customers and suppliers, together we create

mutual, enduring value.

Planet: Be a responsible citizen that makes a difference by helping build and support
sustainable communities.

Profit: Maximize long-term return to shareowners while being mindful of our overall
responsibilities.

Productivity: Be a highly effective, lean and fast-moving organization.

Marketing mix
Product
Coca-Cola has a very large product category including e.g. different type of cola drinks,
energy drinks, juices and so on. This also applies to Pepsi, which operates additionally in the
food business. King of the cola drinks is definitely the Coca-Cola Classic, which is the most
sold soft drink in the world. It has become with a lot different flavors as well like lemon,
cherry and vanilla. Another significant cola products of this leading company are Coca-Cola
Light and Coca-Cola Zero. Archenemys most famous product is the regular Pepsi that is
number two in the soda markets. Pepsi has developed a lot of variations from its primary cola
too and the company has a strong positioning on diet cola markets as well.

Price
Both Coca-Cola and Pepsi are facing competition on cola markets, but mostly from each
other. These two leaders are dominating the market and the existing situation is called
oligopoly. This means that companies have more pricing power than if they were operating in
perfect market circumstance. It is clear that their pricing is highly influenced by competition,
because Coke and Pepsi are almost perfect substitutes and therefore, if Coca-Cola increases
its price, many of its customers will start to consume Pepsi. However, there can be identified
a bit different pricing strategies between rivals especially in United States. Coca-Colas
pricing is based on the value that its products create to customers in different situations.
Thats why Cokes price per litre can variety depending e.g. on the packaging or location.
Pepsi is taking this value based pricing strategy a bit further with their Hybrid Everyday
Value model. This pricing strategy is an effort to make customers buy Pepsi not only when it
is on sale. Its expected that Coca-Cola might try some kind of similar pricing model if Pepsi
succeeds with their own, although Coca-Colas pricing is nowadays slightly more aggressive.

Place
Coca-Cola and Pepsi are literally everywhere! Their products are sold in more than 200
countries over the world throughout supermarkets, cafes, restaurants, vending machines, gas
stations, movie theaters and so on. Thus there is not a big difference between availability of
Coke and Pepsi. Coca-Colas distribution is based largely on operating through local bottling
partners, which in turn are working with customers. Pepsi is also using same kind of strategy.
All in all it is a bit difficult to find differences between the cola market placing/distribution
strategy of Coca-Cola and Pepsi. In any event, I can give you a hint. Be prepared to drink
Coke if you visit in one of these leading fast food restaurant chains: McDonalds, Subway or
Burger King.

Promotion
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Promoting has a huge influence on cola beverage giants present and future success. CocaCola and Pepsi are heavy-users of promoting e.g. on television, on the Internet, in stores, in
social media and via sponsorships: their combined advertising budget is billions of dollars.
Rivals, however, are committed to use their marketing actions responsibly. Briefly this means
that Coca-Cola and Pepsi dont target their marketing to children under the age of 12. In
addition, they emphasize the meaning of healthy life. Although competitors use almost
similar promoting tools, are tactics naturally various because of different targets and startingpoints. More information about promoting and communication strategies can be found from
my next post.

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Flavor/type

PepsiCo

The Coca-Cola
Company

Cola

Pepsi

Coca-Cola

Diet/sugar-free cola

Diet Pepsi/Pepsi Light

Diet Coke/Coca-Cola Light

Pepsi ONE

Tab

Pepsi Max

Coca-Cola Zero

Pepsi Next

Coca-Cola Life

Caffeine-free cola

Caffeine Free Pepsi

Caffeine Free Coca-Cola

Cherry-flavored

Pepsi Wild Cherry

Coca-Cola Cherry

Dr Slice

Mr. Pibb / Pibb Xtra

DOC 360

Dr Pepper (distributed by Coca-Cola in

Dr Pepper (distributed by PepsiCo

Europe, Mexico, South America and

in Canada, Oceania, Poland and

parts of the US)

cola

"Pepper"-style

parts of the US)

Orange

Mirinda

Fanta

Tropicana Twister

Minute Maid

Tango

Simply Orange

Slice

Royal Tru Orange (in the Philippines)

Crush (distribution rights)

Lemon-lime

Teem

Sprite

Slice

Lemon & Paeroa

Mist Twst
7 Up (in countries other than the
US)

Other citrus flavors

Mountain Dew
Kas

19

Citrus Blast

Ginger ale

Patio

Seagram's Ginger Ale

Schweppes (distribution rights)

Root beer

Mug Root Beer

Barq's
Ramblin' Root Beer (until 1995)

Cream soda

Mug Cream Soda

Barq's Red Creme Soda

Juices

Tropicana

Minute Maid

Dole

Fruitopia

(prepackaged only, under license)

Simply Orange

Lipton

Nestea

Brisk

(manufactured by Nestl in the US and by a

(ready-to-drink products )

joint venture between Nestl and Coca-Cola)

Iced tea

Gold Peak Tea

Fuze

Sports drinks

Gatorade

Powerade

Propel

Aquarius
Vitamin Water

Energy drinks

AMP

Full Throttle

Rockstar

NOS

Sting

Relentless
Burn
Monster
Samurai

Bottled water

Aquafina

Dasani
Kinley

20

S.W.O.T Analysis of PepsiCo and coca cola

Strength
PepsiCo and Coco cola has been a complex part of the world culture for a long time. The
products image is loaded with over-romanticizing and fun, this is an image many people
have taken deeply to hearts. Pepsi and coco cola are the extremity recognizable brand, which
is the greatest strength of them. Additionally their bottling is one of their greatest strength.
This allows them to conduct business on a global scale while at the same time maintain a
local approach. PepsiCo and Coca Cola are having the largest distribution network in the
world.

Weakness
Weakness for any business need to be both minimized and monitored in order to effectively
achieve productivity and efficacy in their business activity. Although their international sales
are increasing but they are getting saturation evident through their stability in markets all over
the world and moreover, all over the world the customer preference for cola drink is shifting
towards heath drinks due to their consequences

Opportunity
Brand recognition is significant factor affecting PepsiCo and Coco Colas competitive
position. PepsiCo and Coco Cola are well known brands from 90s till now. As in developing
countries the per head consumption of Cola Drink in very less which is evident for example
in India, per head consumption is only six bottle as compared to seven hundred in USA. In
Indian market only 5% of the beverage come under packaging so looking at this data we can
see that for these two giants a lot of potential opportunity is required in developing market
which is now also un tapped.

Threats
Currently the new viable competitions in the carbonated soft drink industry are not very
substantial. The threat of substitute however is a very real threat. The soft drink industry is
very strong but the customers are not loyal to any one brand. Possible substitutes that
continuously put pressure on both the companies which include tea, coffee, milk, hot
chocolate. Even though Coco Cola and Pepsi control nearly 40% of the beverage industry, the
changing health consciousness of the market could have a serious effect on this percentage
hence both have already diversified into these markets but still these substitutes will remain
threat to them.

21

Research objectives and Methodology

2.1 Research objectives
1. To know about the industry
2. To help consumer to know about the companies product and their future ventures.
3. To know about the companies Pepsi co and Coca-Cola their product ,marketing
strategies and values mission adopted in the cellular companies
4. To know the customer preference
5. To understand the customer segmentation
6. To know the customers taste and preference

2.2 Research methodology

Research methodology is the way to systematically solve the research problems. The method
used for the research is descriptive in nature, it is done to find out the our objectives. In
descriptive research we use both primary and secondary data;

Primary data
Primary data is information that you collect specifically for the purpose of your research
project. An advantage of primary data is that it is specifically tailored to your research needs.
A disadvantage is that it is expensive to obtain.
Some of the sources of primary data
1. Questionnaire
2. Interacting with people

Secondary data
Secondary data is the data that have been already collected by and readily available from
other sources. Such data are cheaper and more quickly obtainable than the primary data and
also may be available when primary data can not be obtained at all.
Some of the sources of secondary data
1. Internet
2. Information brochures
3. Magazines

22

Research methodology used of the project

Achieving accuracy in any research requires in depth study regarding to the objective of the
project . As the prime objective of the project is to study and compare the companys which
are pepsico and coca-cola. All the useful data which were required for the research has been
collected through primary and secondary data are:-

Primary data
Information collected through questionnaire

Secondary data
Information collected through internet , magazine & newspaper

2.3 Research design

Types of research :1.

Descriptive research

2.

Correlated research

3.

Semi experimental research

4.

Experimental research

Research used in study :- descriptive research

Descriptive research includes survey and fact finding enquires of different kinds . The main
characteristic of this method is that the research has no control over the variables, which keep
fluctuating according to the happening

2.4 Assumptions made in project

1. It is assumed that the data collected is representation of whole population
2. It is assumed that information provided by the sample is accurate and best of their
knowledge.

23

2.5 Data collected

Data collected through a market survey in the capital i.e Delhi .

poplation used in survey

100; 100%

24

Questionnaire
Name:- Mr/Mrs__________________________
Gender:- ( male/female)
Occupation:
Professional

Student

Businessman

Housewife

Service

Any other

Age Group?
a) 20 -25

b) 25-30

c) 30 -35

d) above 35

Q1. Do you take soft drinks?

a)Yes

b) No

Q2. Do you take soft drinks regularly?

a) Yes

b) No

Q3.Which brand's taste do you like?

a) Pepsi co.

b) Coca-Cola

Q4. Which brand of cold drink do u prefer ?

a) Pepsi

b) 7up

c) Mountain Dew d) coke

Q5. What is the reason behind choosing your brand?
a) Taste

b) Advertisement

c) Easily available d) Price

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Q6. Which quantity of cold drink do you buy?

a) 200 ml

b) 300 ml

c) 500 ml

d) can

Q7.Which flavours do you generally purchase ?

a) lemon

b) orange

c) cola

d) others

Q8. If cola what is your particular brand that you prefer ?

a) Pepsi
b) Coke
Q9. After sports, what will you drink?
a) Pepsi
c) juice

b) coke
d) water

Q10. Which one do you consider to be most popular?

a) Coca Cola

b) Pepsi

Q11. Which of the sodas does your local shop offer?

a) CoCa Cola
b) Pepsi
c) Both of them d) Neither e) Dont Know
Q12. Which of the marketing campaign do you prefer?
a) Always CoCa Cola

b) Pesi Celebrity Campaign

c) Dont Know
Q13. Which one do you find more available when
ordering one of the sodas when going to restaurants ?
a) Regular Coca Cola b) Regular Pepsi
c) Both
order it

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d) Dont Know

e) Dont usually

Q14. Which one do you find more available when ordering one of the sodas
when going to restaurants?
a) Regular Coca Cola

b) Regular Pepsi

c) Both

d) Don't know

e) Don't usually order it

Q15. How often do you drink the soda you usually drink? (Regular Coca
Cola or Regular Pepsi)
a) Every day

b) 2-6 times a week

c) Every other week

d) Once a month

e) Only for certain occasions

f) Never

Q16. What influences your choice of soda? (Regular Coca Cola or regular
Pepsi)
(Select as many as appropriate)
a) Taste

b) Availability

c) Customer loyalty

d) Brand image

e) Price

f) Advertisement

g) Don't drink these two sodas

Q17. In which media channels do you usually recognize Coca Cola's

advertisements?
(Select as many as appropriate)
a) TV

b) Radio

c) Internet

d) Magazines

e) Posters

f) Neither

g)Don't know

Q18. What's your general impression of Coca Cola's advertisements?

(Select as many as appropriate)
a) Traditional

b) Trendy

c) Controversial

d) Commercial

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e) Enjoyable

f) Provocative

Q19. What's your general impression of Pepsi's advertisements?

(Select as many as appropriate)
a) Traditional

b) Trendy

c) Controversial

d) Commercial

e) Enjoyable

f) Provocative

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