1

S.Y. BMS
‘A’
GROUP MEMBERS
KOMAL SINGH
07
NISHAT SHAIKH
53

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 PRANAV SHETTY
41
2009-10

CONTENT
1. INTRODUCTION

2. HISTORY OF COCA COLA & PEPSI

3. MARKET SHARE IN INDIA

4. MARKETING MIX ( 4 P’s)

• Product

• Price

• Place

• Promotion

5. PRODUCT MIX

6. PRICING STRATEGY

7. DISTRIBUTION CHANEL

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8. BRANDING

9. CONCLUSION

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 INTRODUCTION:

In the modern urban culture consumption of soft drinks

particularly among younger generation has become very popular.
Soft drinks in various flavors and tastes are widely patronized by
urbane population at various occasions like dinner parties,
marriages, social get together; birthday calibration etc. children of
all ages and groups are especially attracted by the mere mention of
the word soft drinks.

With the growing popularity of soft drinks, the technology of its

production, preservation, transportation and or marketing in the
recent years has witnessed phenomenal changes.

The so-called competition for this product in the market is from

different other brands. Mass media, particularly the emergence of
television, has contribute to a large extent of the ever growing
demand for soft drinks the attractive jingles and sport make the
large audience remember this product at all times.

It is expected that with the sort of mass advertising, reaching

almost the entire country and offering various varieties annual
demand for the product is expected to rise sharply in the times to
come.In any marketing situation, the behavioral / environmental
variables relating to consumers, competition and environment are

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constantly influx. The competitors in a given industry may be
making many tactical maneuvers in market all the time. The may
introduce or initiate an aggressive promotion campaign or
announce a price reduction. The marketing man of the firm has to
meet all these maneuver and care of competitive position of his
firm and his brand in the market. The only route open to him for
achieving this is the manipulation of his marketing tactics.

In today’s highly competitive market place, three players have

dominated the industry; The New York based Pepsi Company Inc.
The Atlanta based coca- cola and U.K. based Cadbury Schweppes.
Through the globe, these major players have been battling it out for
a bigger chunk of the ever –growing soft drink market. Now this
battle has been evolved up to India too with the arrival of these
three giants.

HISTORY OF COCA COLA

Coca-Cola, started out as an insignificant one-man business and
over the last one hundred and ten years has grown into one of
the largest companies in the world. Dr. John Pemberton, an
Atlanta pharmacist, invented Co ca-Cola. He concocted the formula
in a three-legged brass kettle in his backyard on May 8, 1886. He
mixed a combination of lime, cinnamon, co ca leaves, and the
seeds of a Brazilian shrub to make the fabulous beverage.
Coca-Cola debuted in Atlanta's largest pharmacy, Jacob's
Pharmacy, as a five-cent non- carbonated beverage. Later on,
the carbonated water was added to the syrup to make the

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beverage that we know today as Coca-Cola. In the mid-1970,
more than half Coca-Cola sold was outside of the U.S. Coca-
Cola products outsell closest competitor by more than two to one.
One in every two cola and one in every three soft drinks is
a Coca-Cola product. The best-known trademark in the world
is sold in about one hundred and forty countries to 5.8 billion
people in eighty different languages. This is wh y Coca-Cola is
the largest soft drink company in the world. For more than 65
years, Coca- Cola has been a sponsor of the Olympics.
Advertisements for Coca Cola started on the radio in the
1930s and on the television in 1950. Currently Coca-Cola is
advertised on over five hundred TV channels around the world.

HISTORY OF PEPSICO
Born in the Carolinas in 1898, Pepsi-Cola has a long and rich
history. The drink is the invention of Caleb Bradham (left), a
pharmacist and drugstore owner in New Bern, North
Carolina.
The summer of 1898, as usual, was hot and humid in New Bern,
North Carolina. So a young pharmacist named Caleb Bradham
began experimenting with combinations of spices, juices, and
syrups trying to create a refreshing new drink to serve his
customers. He succeeded beyond all expectations because he
invented the beverage known around the world as Pepsi-Cola.

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 MARKET SHARE IN INDIA
These two soft drink companies (Coca cola & Pepsi) acquire the
major share of the soft drink Industry and always remain in the war
to get the majority of market share with each other. These
companies always be pioneer in using various innovative
technology and method to become the market leader. These
companies present the world new innovative ways of doing the
marketing and how take advantage of various opportunities and
how to use your strength in a better way.
In India currently colas (carbonated soft drinks) products
comprises 61% and non-cola segment constitutes 36% of the total
soft drink market whereas 2% is covered under other various
drinks like apple juice, cold coffee, cold tea etc.

OPPORTUNITY IN INDIAN MARKET

As in India, around 120 billion liters of beverage is consumed

every year, of which only 5 percent are in packaged segment and
also if we compare per head consumption of soft drink in India to
America it is 6 is to 700. So looking at these aspects we can say
that there is lot of scope for these two soft drink giant in India to
expand their market as the stakes are huge in Indian market.

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 MARKETING MIX
Product
Coke - 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 t h e f o r m u l a a s o n e of t h e m o s t c l o s e l y h e l d t r a d e
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.

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.

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 Coke v/s 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 which started the Pepsi version of dark cola which
rivalry between these is the major primary competitor
companies. to Coke.

Full Throttle is an energy drink AMP is an energy drink produced

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

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 Vault is a carbonated beverage
that was released by The Coca-
Cola Company in June 2005.
Powerade is a sports drink by
The Coca-Cola Company and
currently number two in the
sports drink market worldwide.
Sprite is a clear, lemon-lime
flavored, non-caffeinated soft
drink, produced by the Coca-Cola
Company. It was introduced to
Mountain Dew MDX is an energy
drink manufactured and
distributed by PepsiCo under the
Mountain Dew brand. It was
introduced in 2005.
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.
7 Up is a brand of a lemon-lime
flavored soft drink.
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 the United States in 1961.
Minute Maid is a product
line of beverages, usually
associated with orange
juice, but now extends to
soft drinks of many kinds.
The Minute Maid company
is now owned by Coca-
Cola, and is the world's
largest marketer of fruit
juices and drinks. It is
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
Tropicana Products is an
American company based
in Bradenton, Florida,
USA, which is one of the
world's largest producers
and marketers of orange
juice. It has been owned
by PepsiCo, Inc. since
1998.
Lipton Original Iced Tea is a
r e a d y- t o - dr i n k i c e d t e a br a n d
sold by Lipton through a
w o r l d w i d e p a r t n er s h i p w i t h
Pepsi.
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countries, Brazil and Venezuela.

Barq's is a brand of root beer

notable for being the only major
North American root beer to
contain caffeine. It has been Mug Root Beer is a brand name
bottled since the start of the 20th of root beer made by the Pepsi
century and is currently sold by
company.
the Coca-Cola Company.

Diet Coke or Diet Coca-Cola is a

sugar-free soft drink produced Diet Pepsi is a low-calorie
and distributed by The Coca-Cola carbonated cola. It was
Company. It was introduced in introduced in 1964 as a variant of
the United States in July 1982. Pepsi-Cola with no sugar.

Kinley is a brand of still Aquafina is a non-carbonated

or carbonated water bottled water

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

Fanta is a soft drink brand

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

Sprite Ice was the first flavor Pepsi Blue is a soft drink made
extension for The Coca-Cola by PepsiCo and launched in
Company's Sprite brand soft
drink. mid-2002.

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 Coca-Cola Blak is a coffee- Pepsi Cappuccino is a
flavoured soft drink introduced cappuccino-flavored carbonated
by Coca-Cola in 2006. soft drink produced by Pepsico.

Slice is a line of fruit-flavored

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

Teem was a lemon-lime-

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

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 PRICE
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 Rs.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.

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 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
Coke - Place
Coke is a multina tiona l company and it has its market
around the entire world. This can be said just by the
first page on its site which asks people to select the
place of their choice. The website looks something
like this:

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Pepsi – Place
Pepsi again has spread worldwide. Pepsi when
entering a new market does not go in alone but it
looks for partners and mergers. Till now Pepsi has
collaborated with companies like Quaker Oats, Frito-
lays, Lipton, Starbucks, etc.

Pepsi like Coke has spread all over the world. It is

because of this worldwide spread that now it is coming
up with Advertise ments which can be broadcasted in
the different nations in the world. The recent example
with would be the Pepsi advertisements having David
Beckham as it brand ambassador.

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 PROMOTION
Promotion is one of the four aspects of marketing.
Promotion comprises four subcategories:
1. Advertising
2. Personal selling
3. Sales promotion
4. Publicity and public relations
The specification of these four variables creates a
promotiona l mix or promotiona l plan. A promotiona l
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, position ing,
competitive retaliations, or creation of a corporate
image.

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

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implica tion 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.

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 PRODUCT MIX
A product is anything that can be offered to a market to satisfy a
want or need, including physical goods, services, experiences,
events, persons, places, properties, organizations, information, and
ideas.
If we take the example of soft drink industry, then these companies
not only sell soft drinks in physical forms, but brands. A brand
comprises of everything from beverages to experiences. However
in this chapter we shall try to understand and analyze the product
line and product classification of Pepsi and coca cola.

1. PRODUCT PORTFOLIO
Both the cola majors have a variety of products available in their
kitty. They have a wide range of product line. They keep coming
on with new products to attract the customers and to have a major
share of the market. So the product portfolio of these companies is
as follows:
COCA COLA
The Coca-Cola Company has more than 2800 products in over 200
countries. From Inca Kola, a sparkling beverage found in North
and South America, and Samurai, energy drink available in Asia;
to Vita, an African juice drink, and BonAqua, water found on four
continents, their product variety spans the globe…

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The various products of Coca-Cola available in India are:
• Coca-Cola: Coca-Cola is the most popular and biggest
selling soft drink in history, as well as the best-known product in
the world.
Available in the following flavors: Cola, Cola Green Tea, Cola
Lemon, Cola Lemon Lime,
Cola Lime, Cola Orange and Cola Raspberry.
• Diet Coke: Diet Coke was born in 1982. Diet Coke is the
drink for people who want no calories, but plenty of taste. Known
as Coca-Cola light in some countries, it's now the No.3 soft drink
in the world.
Available in the following flavors: Black Cherry Cola Vanilla,
Cola, Cola Green Tea, Cola
Lemon, Cola Lemon Lime, Cola Lime, Cola Orange and Cola
Raspberry
• Fanta: Fanta was introduced in the United States in 1960.
Consumers around the world, particularly teens, fondly associate
Fanta with happiness and special times with friends and family.
This positive imagery is driven by the brand's fun, playful
personality, which goes hand in hand with its bright color, bold
fruit taste and tingly carbonation.
• Kinley: Kinley is a carbonated water that comes in wide
array of variants such as tonic, bitter lemon, club soda and a
myriad of fruit flavors.
Available in the following flavors: Apple Peach, Bitter Grapefruit,
Bitter Herbal, Bitter
Lemon, Bitter Water, Blueberry Pomegranate, Club Soda, Ginger
Ale, Lemon and Raspberry
• Limca: This thirst-quenching beverage features a fresh, light
lemon- lime taste and fun loving attitude. It's a homegrown,
national treasure in India that is acquired by the Coca- Cola
Company in 1993. Limca continues to build a loyal following
among young adults who love the lighthearted way it complements

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the best moments of their lives. This drink is available in lemon
flavor.
• Sprite: Introduced in 1961, Sprite is the world's leading
lemon-lime flavored soft drink. Sprite is sold in more than 190
countries and ranks as the No. 4 soft drink worldwide, with a
strong appeal to young people. Millions of people enjoy Sprite
because of its crisp, clean taste that really quenches your thirst. But
Sprite also has an honest, straightforward attitude that sets it apart
from other soft drinks. Sprite encourages you to be true to who you
are and to obey your thirst.
• Available in the following flavors: Bitter Lemon Citrus
Grapefruit, Citrus, Lemon and Lemon Lime

PEPSICO
Pepsi has been bringing fun and refreshment to consumers for over
100 years. From its humble beginnings over a century ago, Pepsi-
Cola has grown to become one of the best known, most-loved
products throughout the world. Today, the company continues to
innovate, creating new products, new flavors and new packages in
varying shapes and sizes to meet the growing demand for
convenience and healthier choices.
The various product of Pepsi available in India are:
• Pepsi: Pepsi is the most saleable product of PepsiCo. It is
popular in the younger generation all around the world.
Diet Pepsi: With its light, crisp taste, Diet Pepsi gives you all the
refreshment you need - with zero sugar, zero calories and zero
carbs, Light, Crisp, refreshing.
• Mirinda: Mirinda was originally produced in Spain. Mirinda
is a brand of soft drink available in fruit varieties including orange,
grapefruit, and apple, strawberry, pineapple, banana, and passion
fruit and grape flavors. The orange flavor of Mirinda represents the
majority of Mirinda sales worldwide.

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 • 7up: 7 Up is a brand of a lemon-lime flavored non
caffeinated soft drink. The rights to the brand are held by Dr
Pepper Snapple Group in the United States, and PepsiCo (or its
licensees) in the rest of the world.
• Mountain Dew: Mountain Dew (also known as Mtn Dew as
of late 2008) is a soft drink distributed and manufactured by
PepsiCo. Mountain Dew (and its energy drink counterpart known
as AMP) often incurs the disapproval of health experts due to its
relatively high caffeine content for a soft drink or energy drink.
• Pepsi Blue: Pepsi Blue is a berry-flavored soft drink
produced by PepsiCo. It was launched in India near the cricket
world cup to associated the Pepsi with the Indian people as Blue is
official colour of Indian cricket team. The flavor of Pepsi Blue was
thought by drinkers to be similar to cotton candy with a berry-like
aftertaste (it resembled that of blueberries or raspberries).
• Slice: Slice is a line of fruit-flavored soft drinks
manufactured by PepsiCo and introduced in 1984. Varieties of
Slice have included Apple, Fruit Punch, Grape, Passion fruit,
Peach, Mandarin Orange, Pineapple, Strawberry, Cherry Cola,
"Red", Cherry-Lime, and Dr Slice.

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 PRODUCT LIFE CYCLE
To be able to market its product properly, a business must be
aware of the product life cycle of its product. The standard product
life cycle tends to have five phases
- DEVELOPMENT
- INTRODUCTION
- GROWTH
- MATURITY
- DECLINE

In America carbonated soft drink market is currently in the

maturity stage, which is evidenced primarily by the fact that they
have a large loyal group of stable customers but in the developing
countries like carbonated soft drinks are in growth stage, which is
evidenced by looking at the per head consumption of 6 bottles in
India is lagging behind the US astounding 700 bottles per head
consumption.

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 POSITIONING AND
PROMOTION
Positioning is the act of designing the company offering and image
to occupy a distinctive place in the mind of the target market.
1) COKE AND PEPSI POSITIONING
Coke had introduced in the market before the Pepsi. So taking the
first move advantage
Coke is able to place itself as the all American choice.Firstly the
Pepsi in America try to position 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”
This positioning strategy they followed up to 1960 and after
analyzing that it is very difficult to capture whole population as
whole. So Pepsi after 1960 started targeted marketing. Pepsi
targeted the youth section and position there product as a necessity
for youth and Pepsi advertisement slogan after 1960 try to position
Pepsi as the brand for youth which are clearly visible from there
advertisement as follow

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ADVERTISEMENT IN INDIA REPRESENTING YOUTH

- “now its Pepsi for those who thing young”

- “come alive, you’re in Pepsi generation “
- “you’re got a lot to live and Pepsi’
- “yeh hai youngistaan meri jaan” (in India)
- “taste the once that’s forever young”

In the 1960s and early 1970s, PepsiCo was a much more

aggressive and innovative company than coke. In this period Pepsi
outflank coke to survive. In early 1975s Pepsi introduced the Pepsi
challenge marketing campaign where PepsiCo set up a blind
tasting between Pepsi-cola and Coca-cola. In this Pepsi started
direct road show taste competition in which two glass of soft drink
one is Pepsi and another is Coke is given to person not known by
him which glass contain which soft drink and after tasting both the
glasses they ask which soft drink is having better taste. In this
competition Pepsi said 80% of people like Pepsi taste over Coke.
PepsiCo took this a great advantage of the campaign with
television commercial reporting the test results to the public. So
through this competition Pepsi is able to position itself in the mind
of customer that Pepsi have better the taste than coke.
Coca cola follows Push Strategy to advertise and sell their product
in the market. Coca cola usually giving higher discount to the
retailer fills their selves space with their product and when the
consumer see only coca cola in the market they are forced to buy
there product only.
In India both Coca-cola and PepsiCo have shown the door to older
celebrity endorsers and are betting big on emerging stars.
PepsiCo was parted ways with Shah Rukh Khan, Sachin
Tendulkar, Rahul Dravid, Sourav Ganguly, Mahender Singh
Dhoni, Ranbir Kapoor, Deepika Padukone, Ishant Sharma,
Rohit Sharma, Shreeshant and Virender Sehwag to strengthen its
“youngistaan” brigade.

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PepsiCo signed Asin (of Ghajini fame) to take war to orange flavor
category. PepsiCo had 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.

Coca cola try to positions themselves as the happiness bringing

drink and drink for every community as visible from above
advertisement. As this is well judged by their advertisement and
their slogans. Their are different advertisement, which depicts
that’s coca cola, is the need for party or coca cola brings more joy
and taste to the party. Coca cola has roped in GautamGambir as
brand ambassador for the company new “coca cola open
happiness” campaign ahead of IPL seasons. While the single ad
campaign works wonders, giving the difference in consumption
patterns in the south, the coca cola majors had customized their
advertisement for the four southern states. Coca cola, on the other
hand identified the southern market as a great testing ground for its
new brands, so much so that both its pulpy orange drink, minute
maid and Fanta apple were first launched, marketed and advertised
them before a pan India roll-out and a national campaign.

POSITIONING OF PRODUCT LINE

EXTENSION
(COKE AND PEPSI)
Pepsi and coke have range of product in their basket, which are
targeted to different market segment and their positioning are done
in that way.
THUMS UP (COCA COLA) & MOUNTAIN DEW (PEPSICO)
Thums up of coca cola and mountain dew of Pepsi are targeted to
the adventurous and energetic people that are interested in
adventure and love taking risk to succeed. The advertisement of
both the soft drink positions them in mind of consumer as the

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strong soft drink. Thums up campaign, however, has been led by
Akshay Kumar with his gravity defying stunts in the forefront.
Similarly mountain dew giving advertisement like “darr ka
aage jeet hai” position it as strong soft drink in mind of
consumer.

TROPICANA & MINUTE MAID

Tropicana of PepsiCo and Minute Maid of Coca cola are specially
targeted to health conscious customers and want health drink
having natural energy in it. These drinks come under the category
of juices so these drink basically launched to transfer the
consumer, which drink juices to Tropicana and Minute maid.

MIRINDA (PEPSICO) & FANTA (COCA COLA)

These drinks are specially launched for the lady sector of the
population and these drinks are positioned in that way only. In the
advertisement also they take lady personality for the promotion of
these product so that the product make a space in lady sector.

TAB (COCA COLA)

Tab of coca cola initially flopped as diet cola because consumer
could not tell the difference between tab with one calorie and diet
Pepsi, which then had 100, as coke was not able to position it
correctly in mind of the customer. Then coke figured out that it
could position the tab or dramatized the difference by surrounding
the bathing beauty with 100 empty tab bottles. Armed with that
insight, coke flooded the try screen with ads and backed them up in
stores with display, signs and samples and after that it was a
tremendous success.
So until you are not able to correctly position your product in
consumer mind it is impossible to get the success.

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 INNOVATION IN ADVERTISEMENT
METHODS
Industry observers say dependence on try is down to 75 percent
from 95 percent till few years ago. Investment is going into out of
home advertising, point-of-sale promotion and emerging media
like radio and Internet.

SUB-MINIMAL EFFECT ADVERTISEMENT

Understanding the concept that increase in sale of complementary
good helps in increasing the sale of the product. Coca cola starts
advertising in movie- theaters and giving advertisement “drink
coke and eat popcorn”. This resulted in 2% sales increase of coca
cola and 10% sales increase of popcorn. The choice of Movie
Theater is because in movie theaters there are very less thing to
distract mind of the person.
Pepsi is also now advertise their product with snacks like
sandwich, south Indian food etc so that when the consumer ask or
eat that snack the picture of Pepsi come to their mind and they will
ask for the Pepsi. This is know as Sub-minimal effect in which
consumer did not get the idea how advertisement is influencing
them.

COKE AND PEPSICO AD WAR

A battle is hotting up in India between the two international Cola
giants, Coke and Pepsi, to corner a bigger share of the nearly
Rs.6500 crore market. “Share my dream,” said Coca- Cola to the
Indian consumer in 1993. Older Coke lovers welcomed the world's
best-known brand back with misty eyes. The younger lot just
shrugged. Among soft drinks, Coke was stronger than Pepsi among
the older people (evidently nostalgia was at work) while Pepsi
obviously scored above Coke with 'Generation next'.
Coke was the official drink for the Wills World Cup but Pepsi
blew officialdom to bits with its cheeky 'Nothing official about it'.

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After losing the world cup rights to Coke, Pepsi launched an
aggressive campaign signing up leading Indian cricketers.
In 1998, Coke's teen strategy finally moved into place. It signed on
Saurav Ganguly and Srinath and came up with the peppy 'Eat
crickets, sleep cricket, drink only Coca-Cola'. A near winner was
'Peeti kya Coca-Cola?' The aim was to fix the brand's message in
consumer mind space. Just as Coke ads were finally telling stories
the way Indian consumers like it, aided by Aamir-appeal, Hrithik-
mania and Aditi-gaze, comes a damp squib about four friends
growing up with Coke, too desperate and too dull. The stakes are
high and the two Cola giants are slugging it out for every bit of this
market share, even if it means bitter tactics at times. Between Coke
and Pepsi they have signed on nine players of the Indian cricket
team and Bollywood seems to be the next hot spot they want to
cool. For now, it's Shah Rukh, Rani Mukherjee, Kajol, Preity Zinta
and Superstar Amitabh Bachchan in the blue (Pepsi) corner and
Amir, Hrithik, AditiGowatrikar and Aishwarya, in the red (Coke).
The battle continues with Aamir Khan and Aishwariya Rai both
wooed away from Pepsi by tempting offers from Coke. However
this is just the beginning and things are likely to get even hotter.

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 PRICING STRATEGY
Price is not just a number tag. Price comes in many forms and
performs many functions. It is one of the factors that affect the
sales in a drastic ways.

1. PEPSI PRICING STRATEGY IN 1936

Pepsi gained popularity following the introduction in 1936 of a 12-
ounce bottle. Initially priced at 10 cents, sales were slow, but when
the price was slashed to five cent, sales increased substantially.
Pepsi encouraged price-watching consumers to switch referring the
coca cola standard of six ounces a bottle for the price of five cents
(a nickel), instead of the 12-ounces Pepsi sold at the same price. In
1936 alone 500 million bottles of Pepsi were consumed. For 1936
to 1939, Pepsi profit doubled and there is also a dramatic increase
in sales of Pepsi. This case of Pepsi presents the live example how
the pricing makes difference in marketing process of a firm.

2. PRICING MIX (COCA COLA AND PEPSI)

There is the time (2002-2003) when Coca cola and Pepsi tried to
appeal to the masses through a 200ml bottle priced at Rs.5. It
brought down the average price of its product to
Rs.5 thereby bridging the gap between soft drink and other local
option like tea, milk, and sugarcane juice or lemon water and it
also makes the price point of the soft drink within the reach of high
potential rural market.
Coca cola and Pepsi in the market place now start with the basic
introductory pack, which is a 200 ml returnable glass bottle priced
at Rs.8 and is available across low income and rural areas. The
next pack size is 300 ml at Rs.10 and is focused on those willing to
pay more within the immediate consumption arena. Coca cola and
Pepsi recently introduced an on-the-go pack as research showed it
that the next pack of 600ml (mobile) was too much to consume on

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the go. The new on-the-go consumption pack is called the “express
pack” and doing well in channels such as travel, malls, so on,
where people want a single serve and it is priced at Rs.20. Can
packing (250 ml) of Coca cola and Pepsi is priced at Rs.15. The
company also introduced the party pack of 2 liter of the
consumption in the party and is priced at Rs.55. The average price
of this packing is cheap than other packing as to increase the
consumption of soft drink in the market.
PepsiCo India priced So Be Adrenaline Rush (premium product) at
Rs.75 for the can of 245ml. So Be Adrenaline Rush is a maximum
energy supplement aimed at helping consumers perform at their
peak by energizing their body and mind and charging up energy an
alertness levels. As this is a premium and launched drink with
energy booster so it is priced at higher price as compare to other
drink. PepsiCo also introduced their sport drink in 500 ml packing
for Rs.35. As this drink is specially introduced for the specifically
sports segment so it is costlier as compare to other drinks. It also
introduced its Nimbooz in packing of 200ml at Rs.10. Tropicana of
PepsiCo comes in packing 200ml at Rs.15 and in packing 1 liter at
Rs.65. Coca cola also introduced its pulpy orange drink (Juice),
Minute Maid, in India at Rs20 in the 500ml.

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 DISTRIBUTION CHANNEL
Distribution (or 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 know 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.

1. DISTRIBUTION STRATEGY
Coca cola and PepsiCo are world wide 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.

2. 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

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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.

BRANDING
Brand is defined as a name, term, symbol, or design, or a
combination of them, intended to identify the goods or services of
one seller or group of sellers and to differentiate them from those
of competitors. A brand is thus a product or service that adds
dimension that differentiate it in some way, from other products or
services designed to satisfy the same need. These differences may
be functional, rational, or tangible, related to product performance
of the brand. They may also be more symbolic, emotional or
intangible related to what brands represent.

1. BRAND NAME
Through various researches it is been found that a symbolically
significant name helps to sell a product. One of interesting
illustration how name affects marketing is the case study of coca
cola. When it was introduced in china in the 1920, coca cola
sounded like “kou-kekou-la” which means “a thirsty mouth and a
mouth of candle wax”. The company changed the phonetic
translation to “ke-kou-ke-le” which means “a joyful taste &
happiness” thirsty Chinese consumers responded in drove to the
more felicitous “meaning”.

2. PACKAGING
Coca cola and Pepsi are much innovated in the packing of their
product. These companies introduced different concept of packing.
The Airtight bottle concept is given by the Coca cola, which has
revolutionized the bottling and packaging industry. These Cola
giant also introduced the different size of returnable glass bottle

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like 200ml, 300ml and non returnable plastic bottle like 600 ml,
1.5 litres, 2 litres according to the need of the targeted customer.
They also pioneer in bring Cans and Frosted bottles in the market.
Packing helps the brand to capture the desire target like 600ml
packing is launched, as “express pack” so this is targeted to touring
population and this segment needs non-returnable bottles. The
Coca cola is innovative in design of bottle like Fanta, Aquafin
(500ml & 1 litre) having curve shaped bottle that are easy to hold.

3. LABELING
PepsiCo has associated it self to rich deep blue colour as blue
colour represents eternal youthness and openness that is
appropriately consistence with the youth segment they are
targeting. PepsiCo under the name of Project Globe Campaign
spent 637 million dollars over 5 years, to introduce the new rich
deep blue colouring. So labeling helps the brand to get attach with
the targeted segment.

4. UNDERSTANDING OWN BRAND IMAGE

Battered by competition from the sweeter Pepsi cola, Coca-cola
decided in 1985 to replace it’s old formula with a sweeter variation
NEW COKE. Coca-Cola spent $4 million on market research.
Blind taste tests showed that coke drinkers preferred the new
sweetener formula, but the launch of new coke provoked a national
uproar, market researcher had measured the taste but had failed to
measure the emotional attachment consumer had to coca-cola.
There were angry letters, formal protests and even law suits threats
to force the retention of “the real thing”. Ten weeks later, the
company withdrew NEW COKE and reintroduced its century old
formula as “classic coke” giving the old formula even stronger
status in the market place.

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5. BRANDING IN RURAL MARKET BY COCA
COLA
In India (2002), Coca cola launched a new advertisement campaign
featuring leading Bollywood star Amir Khan.
The advertisement with tagline-“Thanda matlab COCA COLA”
was targeted at rural semi urban consumers.
The idea was to position Coca cola as a generic brand for cold
drinks. The campaign was launched to supports Coca cola rural
initiative. However, the poor rural infrastructure and consumption
habits that are very different from those of urban people were two
major obstacles to cracking the rural market for coca-cola

6. BRAND REVITALIZATION
To recover and reposition brand in mind of consumer when it is
not working successfully is know as Brand Revitalization. So there
is an interesting example how brand repositioning helps in
recovering and growth of the product.
Pepsi initially introduced Mountain Dew in 1969 and marketed it
with the countrified tagline “Yahoo Mountain Dew”! It’ll tickle
your inwards.” By the 1990s, the brand was languishing on store
shelves despite an attempt to evolve the image with outdoor action
scenes. To turn the brand around, Mountain Dew updated the
packaging and launched ads featuring a group of anonymous
young males-the “Dew Dudes” –participating in extreme sports
such as bungee jumping, skydiving, and snowboarding while
consuming mountain dew. The brand slogan became “do the
DEW”. The brand’s successful pursuit of young soda drinkers led
to mountain dew challenging diet coke to become the number three
selling soft drink in terms of market share by 2000.

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 CONCLUSIONS
Hence we would like to conclude our project study on
“MARKETING ANALYSIS OF COCA-COLA AND PEPSI” by
saying that Pepsi is the market leader in terms of soft drinks in
India, but comes second to Coca-Cola which consists of Coca-Cola
and park brands. Pepsi’s main target is obviously to be the market
leader and leave its nearest competitor, Coca-Cola, far behind.

They have a cut throat competition between themselves. Whatever

strategy is followed by one company, it is copied by the
other.

We have also learnt various Marketing Tools of both the

companies and Marketing Strategies of Coca-cola and Pepsi.

BIBLIOGRAPHY
 Marketing Management- By Philip Kotler
 www.Pepsico.indialtd
 www.coca-colaindia.com
 Management Paradise. (www.managementparadise.com)

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