Sales Mgmt Final Project

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A

GRAND PROJECT REPORT ON

An analytical study of the sales and distribution

function of two major FMCG distributors Coke India vs.

PepsiCo India

In the fulfillment For the Requirement of Two Year Full

time PGDM, IIPM

Project Guide Submitted By:-

Prof. Veena Nidhi Dixit (F-144)

Priya dixit

Ramit Sharma

Koganti venkata kranti kiran

Batch: 2010-2012


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IIPMSALES MANAGEMENT

PROJECT REPORT

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PREFACE

A comprehensive practical study of management is a supplement to the theoretical classroom

knowledge. It helps to understand the subject more precisely.

This report tries to outline idea of professional world and helps in understanding the

pragmatic aspect of management function. Own observation are significant towards the

contribution in learning the subject. The report is therefore as a design as a reference of

organisation function rather then copy down instrument.

The purpose of industrial training is to make management student familiar with day today

function of business. The present report is an effort in this direction.

My humble endeavour and motive in presenting the project report is to find out the

comparison of brands between Coca-Cola and Pepsi.

It is hoped that this project serve as a supportive documents to research worker as effort has

been tried to make this report and informative stimulating and self explanatory.

Place : NEW DELHI NIDHI DIXIT

PRIYA DIXIT

RAMIT

KOGANTI V

16 March, 2010

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ACKNOWLEDGEMENT

We think if any of us honestly reflects on who we are,

how we got here, what we think we might do well, and

so forth, we discover a debt to others that spans

written history. The work of some unknown person

makes our lives easier everyday. We believe it's

appropriate to acknowledge all of these unknown

persons; but it is also necessary to acknowledge those

people we know have directly shaped our lives and our

work.

Through this acknowledgement, we express our

sincere gratitude towards all those people who have

helped us in the preparation of this project, which has

been a good learning experience for us.

We would like to thank the distribution channel and

Logistics department of the both Giant Organisation

Coke and Pepsi. Both company has Provided us the

various touch points of the whole chain. We have

covered the whole chain of urban area.

Finally we express our sincere thanks to Prof. Veena

and who guided us throughout this project.

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EXECUTIVE SUMMARY

Coca-Cola and PepsiCo are the two major companies in the world for cola drinks

and have a huge world market share. These two companies have captured the

market of each and every country they get into and same I the case in India where

Coke has a market share of 57.8% while pepsi has a market share of 35.6% and are

continuously fighting for a larger market share and continuously attacking each other

either by Advertisements, brand ambassadors, products and marketing of their

brand.

All this is fine but the main core competency of such products is in the Distribution

Process and in the satisfaction of their Retailers thus a strong distribution process

and a strong satisfaction level means more number of retailers and more the

retailers means more the availability of the product and more the availability of the

product means more the market share and thus the curiosity to know who is the

better distributor and has a strong distribution led us to the project Ananalytical study of the sales and distribution function of

two major FMCG distributors Coke India vs. PepsiCo

India

We conducted a survey of mainly retailers and distributors along with other Pepsi

and Coke Stockers but the major stockers are the retailers of mainly 10

respondents(who have given us an idea of more than 100 retailer operations). Itwas a simple questionnaire and we asked questions on quality of bottles, margins

and other attributes.

We got the number of sellers by convenient sampling and analysis and secondary

data analysis and the results are given in the project below

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Table of Contents

2. PHILLIP KOTLER (2010): MARKETING MANAGEMENT, 13THEDITION PEARSON EDUCATION 102

0

12.1CONCLUSIONS 91

12.2 Recommendations to Coke 91

12.3 Recommendations to Pepsi 92

BIBLIOGRAPHY I

ANNEXTURE II

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CH 1:

RESEARCH METHODOLOGY

1. Research Methodology

Problem statement / Objective of the research

To Study the concept of distribution channel and logistics in the soft drink industry and to

study the flow of soft-drink bottles in the market and compare it with the main competitor

in the industry.

Major objectives

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To study the satisfaction level of retailers.

In depth study of the distribution channel of Pepsi and coke

Critically compare the Supply chain management of the both company.

Find out the limitation and strength of both companies.

Research design

The research design that will be use is descriptive research

Involves gathering data that describe events and then organizes, tabulates, depicts,

and describe the data

Uses description as a tool to organize data into patterns that emerge during analysis

Often uses visual aids such as graphs and charts to aid the reader.

Description research takes a what is approach

Refers to the nature of the research question

The design of the research

The way that data will be analyzed for the topic that will be researched

There are three methods of data collection under this method. They are:

Survey

Interviews

Observations

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Sampling plan

Target population: Retailers who stock coke and pepsi mainly panwalas

Sampling size: 10(Spoke to major distributors who in turn supplied to more

than 100 retailers ,hence we are taking the sample size as 100.)

Sampling technique: convenience sampling

Sample Frame: - All members in the retailing channel and who influence the

channel.

Sample Unit: - Any retailer and dealer who stock pepsi and coke.

Sampling Method :- Non probability convenience sampling

Data collection sources

Primary data

Primary data would be collected through the structured questionnaire consisting mainly

open ended questions

Secondary data

Secondary data would be collected from the internet, journals, and reference books.

Figure 1.1: Marketing Research

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Scope of the study

ANALYSIS OF DATA

All the open-ended questions will be analysed by adding up the responses against each

alternative and answers from the various respondents.

Transcripts will result in the finding to explore the changes that are likely to impact the

unique aspects of beverage industry, with present scenario in India and in world. Our

findings will show the current trends in beverage industry, various problems faced by the

industry according to various respondents.

Expected contribution of the study

The analysis made as a part of this study may contribute in a way analysis of strength and

weakness of the sector as whole may be taken into consideration and various firms together

may make efforts to overcome those limitations and as a result not only the beverage

manufacturing firms would be benefited but others who uses the services of these firms

would also be benefited.

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Beneficiaries of the study

The outcomes analysed from this study would be beneficial to various sections such as:

- Beverage industry

This study would definitely benefit the soft drink firms in a way that services

provided by various firms would be compared and also the five force model

analysis of this sector reveal the potential threats to the existing players.

- Corporate

The benefits to the corporate would be that they would be well versed with

detailed information about various services provided by different firms so that it

would easier for them to select a particular soft drink firm to assist them in

various logistic problems.

- Researchers

The major beneficiaries from the project would be the researchers themselves as

this study would enhance their knowledge about the topic. They get an insight of

the present scenario of this industry as this is the emerging industry in the

beverage sector of the economy. Detail knowledge of various services provided

by the soft drink firm will help researchers and others to pursue career in this

industry.

Problems In Marketing research

Non Response of the Retailer

Language problem And Understanding of the questionnaire of the retailer

Giving any answer without understanding the question or without thinking.

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STATISTICAL TOOLS

Representation of statistical data by diagram, graphs, charts, or pictures is more effective

then tabular representation being easily intelligible to layman. Indeed diagrams are most

essential whenever it is required to convey any statistical information to the generic public.

The more important types of diagram which is use in statistical work are:-

BAR DIAGRAM

Mode of diagrammatic representation of data is the bar diagram. In this method the bar of

equal width are taken for the different items of the series. The lengths of the bar represent

value of the variables concerned.

PI CHART

It is a circle whose area is divided proportionately among the components by straight lines

drawn from the centre to the circumference of the circle. When statistical data are given for

a number of categories and we are interested in the comparison of various categories or

between a part of the whole, such a diagram is very helpful in effectively displaying the data

and the type of sampling is convenient and judgment sampling.

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CH: 2

Objective of the Study

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2. Objective of the Study

Since last few years, soft drink market is India at the end of the 2000-2010 decade. So both

the soft drink majors viz. Coca Cola and Pepsi has been emphasizing of placing their brand

at as many outlets as possible so that could cope up with the competition spreading at a

growth rate of 8-10%, it has forecasted that it would become Rs.9000 Crore market in India.

The main object of this project is to comprehensively analyze the distribution of Coca-Cola

and its strength in market against its rival Pepsi and also to be aware like the shopkeeper

about the sale and display of the Cokes brand like Thumbs-up, Maaza viz a viz Tropicana

of Pepsi etc.

This was done in two ways:-

a) Comprehensive market analysis was done by visiting various shops throughout

Delhi.

b) To ask the distributors about the promotions and schemes given to them in order

to sell and promote their products.

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CH: 3

INTRODUCTION TO THE

PROJECT

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3. Introduction to the Project

There is a huge fight between the two soft drinks giant Coca-Cola (Coke) and PepsiCo

(Pepsi) to grab a large part of the Indian markets. The main reason, well the growing Indian

middle class and the huge disposable income they have and also the increasing

consumption of soft drinks by Indians.

Pepsi and Coke both have brands attacking each other if Coke introduces one brand then

Pepsi will bring another brand to fight it and vice a versa. Though Coke is this huge giant

and Pepsi might be just a fly in front of it but the fly troubles and is much capable of fighting

back and also winning.

The main area where they can capture each others market is in the network of distribution

channels they use with restaurant chains, pan walas, hotels and eateries to compete with

each other. It is to these sellers where these two giants are vying for in order to capture a

larger market share and trounce the other and that is why the project on the satisfaction of

these members to see who is winning the competition.

According to industry experts, the market for carbonated drinks in India is worth US$ 1.5

billion while the juice and juice-based drinks market accounts for US$ 0.25 billion. Growing

at a rate of 25 per cent, the fruit-drinks category is one of the fastest growing in the

beverages market. Sports and energy drinks, which currently have a low penetration in the

Indian market, have sufficient potential to grow.

The market for alcoholic beverages has been growing consistently. 'The Future of Wine', a

report on the state of the wine industry over 50 years, suggests that the market for wine in

India was growing at over 25 per cent per year.

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Major investments

Private investment has been one of the key drivers for growth of the Indian food industry.

The 'India Food Report 2008', reveals that the total amount of investments in the food

processing sector in the pipeline for the next three years is about US$ 23 billion.

The government has received around 40 expressions of interest (EoI) for the setting

up of 10 MFPs with an investment of US$ 514.37 million.

Reliance Industries Ltd has invested US$ 1.25 billion in a dairy project.

Focusing on India as a rapidly growing market, US soft drinks giant PepsiCo would

pump in an estimated US$ 152.30 million to set up four new food and beverages

projects by 2012.

Geneva-based food service chain Global Franchise Architects (GFA) aims to open

250 stores around the world by March 2010, of which 100 will be in India.

Today India is one of the most potential markets with the population of around 1000 million

people. There is a growth of 30% in the soft drink industry. These factors are the reason for

the entry of two giants in the soft drink industry in the world to enter in the Indian market.

The cola giants coke and Pepsi, together control almost 96% of entire Indian market while

other companies has only share 4%.

In a long span, a culture transforms itself over and over. The map is remade attitude changefor better or worse. Processes are invented, hailed as revolutionary and discarded obsolete.

So it was one hundred year was a very much different world from what we have today, but

at least one sense, not very different at call. Many reasons have been advanced to explain

the last century. With over 100 yrs. Of interrupted growth despite war, economic depression

and other disturbances there be something that sets soft drink apart from the consumer

culture.

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CH: 4

INTRODUCTIONS TO THE SOFT

DRINKS MARKET

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4. Introduction to the Soft Drinks Market

The main production of soft drink was stored in 1830s & since then from those experimental

beginning there was an evolution until in 1781, when the worlds first cola flavoured

beverage was introduced. These drinks were called soft drinks, only to separate them from

hard alcoholic drinks. This drinks do not contains alcohol & broadly specifying this

beverages, includes a variety of regulated carbonated soft drinks, diet & caffeine free drinks,

bottled water juices, juice drinks, sport drinks & even ready to drink tea/coffee packs. So we

can say that soft drinks mean carbonated drinks. Today, soft drink is more favourite

refreshment drink than tea, coffee, juice etc. It is said that where there is a consumer, there

is a producer & this result into completion. Bigger the player, the harder it plays. In such

situation broad identity is very strong. It takes long time to make broad famous. Coca

Cola has its beginning in 1981 & since then has been one of the three most dominate

players in this soft drink industry.

The name soft drink was given by Americans as against hard drink, which is mainly

alcoholic. So in general terms non-alcoholic drinks are considers as soft drink. Soft drink

consists of flavour base, sweetener and carbonated water.

The major participants involved in the production and distribution of soft drink are

concentrate and syrup producers bottlers and retail channel concentrate-producers

manufactures basis of soft drink flavour and send them to bottlers. Bottlers purchase the

concentrate and add carbonated water and sometime sweeter and bottle or can the soft

drink. This soft drink delivered to the customer accounts retail channels that sales or serve

the product directly to the customers.

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In USA soft drink had existed since the early 1800s where many US druggists had

concentrate blend of fruit syrups and carbonated soda water that they sold them at their

soda fountains.

4.1 History of Soft Drinks

1798 The term "soda water" first coined.

1810 First U.S. patent issued for the manufacture of imitation mineral waters.

1819 The"soda fountain" patented by Samuel Fahnestock.

1835 The first bottled soda water in the U.S.

1850 A manual hand & foot operated filling & corking device, first used for bottling soda

water.

1851 Ginger ale created in Ireland.

1861 The term "pop" first coined.

1874 The first ice-cream soda sold.

1876 Root beer mass produced for public sale.

1881 The first cola-flavored beverage introduced.

1885 Charles Aderton invented "Dr Pepper" in Waco, Texas.

1886 Dr. John S. Pemberton invented "Coca-Cola" in Atlanta, Georgia.

1892 William Painter invented the crown bottle cap.

1898 "Pepsi-Cola" is invented by Caleb Bradham.

1899 The first patent issued for a glass blowing machine, used to produce glass bottles.

1913 Gas motored trucks replaced horse drawn carriages as delivery vehicles.

1919 The American Bottlers of Carbonated Beverages formed.

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1920 The U.S. Census reported that more than 5,000 bottlers now exist. Early 1920's the

first automatic vending machines dispensed sodas into cups.

1923 Six-pack soft drink cartons called "Hom-Paks" created.

1929 The Howdy Company debuted with its new drink "Bib-Label Lithiated Lemon-Lime

Sodas" later called "7 up" Invented by Charles Leiper Grigg.

1934 Applied colour labels first used on soft drink bottles, the colouring was baked on the

face of the bottle.

1952 The first diet soft drink sold called the "No-Cal Beverage" a ginger ale sold by Kirsch.

1955 Coke enters for the first time into Indian markets

1957 The first aluminium cans used.

1959 The first diet cola sold.

1962 The pull-ring tab first marketed by the Pittsburgh Brewing Company of Pittsburgh, PA.

The pull-ring tab was invented by Alcoa.

1963 The Schlitz Brewing Company introduced the "Pop Top" beer can to the nation in

March, invented by Ermal Fraze of Kettering, Ohio.

1965 Soft drinks in cans dispensed from vending machines.

1965 The reseal able top invented.

1966 The American Bottlers of Carbonated Beverages renamed The National Soft Drink

Association.

1970 Plastic bottles are used for soft drinks.

1973 The PET (Polyethylene Terephthalate) bottle created.

1974 The stay-on tab invented Introduced by the Falls City Brewing Company of Louisville,

KY.

1977 Coke leaves India in order to protect its secret about the ingredients used in its

soft drink

1979 Mello Yellow soft drink is introduced by the Coca Cola Company as competitionagainst Mountain Dew.

1981 The "talking" vending machine invented.

1989 Pepsi Enters into India

1993 Coca Cola re-enters into India after the easing of economic norms

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CH: 5

Introduction to the Soft Drink

Market in India

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5. Introduction to the Soft Drink Market in India

Although the beverage industry has been in existence for quite some time now, yet it is still

at an infant stage considering its size and place in the market. India stands at third number

in the consumption of beverage, behind United States and China. It accounts for almost 10

per cent of global beverage consumption. Today, it is being looked as a country that offers

the greatest potential, even more so than China. This year, thebeverage industry in India is

being estimated to grow at 17% at Compounded Annual Growth Rate (CAGR).

Non-alcoholic Drinks Company actually sees India as a potential market because of the kind

of summer that India sees. The Coca-Cola Co reported its profit climbed 43 per cent in the

second quarter to two billion dollar, getting a boost from double-digit unit case volume

growth. The Indian CSD (carbonated soft drinks) market stands at 1.2 billion dollar and the

fruit-based beverages and bottled water at 600 million dollar and 300 million dollar,

respectively.

The wine industry in India is one of the most sought after market at present and all eyes are

on it. The budget announced by the finance minister is not being seen as very

advantageous to the wine industry as it did not announce any significant or major benefits all

round for it. It was expected to make wine sector a part of the food processing industry,

which would lead to uniformity in the state-wise tax structures. The wine industry in India

needs investment to grow to its rightful size of about 30 million cases and it is possible only

with lower production and marketing costs, taxes and increased competition.

As far as the beer industry is concerned, age-old excise policy on liquor and multiform

regulations are hitting the beer industry. The Punjab Excise Policy of 1995, which

inadvertently discourages breweries, while encouraging distilleries, has put the brewers in

the country in a total mess. The beer industry is clearly at a disadvantage. Repeated pleas

have failed to bang the governments deaf ear. Apart from this, the government needs to

make a uniform age limit to consume alcohol. Its different in different states. While an 18-

year old guy can consume alcohol in Goa, you need to be at least 21 to do the same in

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Mumbai. In Punjab, its even higher where it is kept at 25 years. The National law is 21

years. The budget was expected to cut down the taxes on beer that is more than most of the

countries in the world. While the average global taxes on price of the beer are 33.6 per cent,

in India its about 49 per cent and therefore, affordability of beer in the country is lowest

compared to world standards.

However, the impact on non-alcoholic industry has been different. For e.g., packaged

coconut water will be cheaper by rupees three for 200ml as the retail prices have been

reduced from Rs 15 to Rs 12, thanks to the abolition of a 16 per cent excise duty. The

finance minister has also totally withdrawn the 16 per cent excise duty on tea and coffee

mixes and puffed rice. India (1002 Mn kgs), China (990 Mn kgs), Sri Lanka (318.7 Mn kgs)

and Kenya (286.0 Mn kgs) accounts for 80 percent of the worlds tea production. In May, tea

production in India rose to 71,374 tonnes from 70,267 tonnes a year before. However,

output has declined to 215.84 million kg till May this year from 240.24 million kg last year.

The budget has also made dairy majors like Amul, Mother Dairy and Nestle happy because

the customs duty on bactofuges, that separates bacteria from milk, and increases the

Punjab Excise Policy of 1995 shelf life of milk, has been abolished. On a bactofuge that

costs between Rs 1.5 two crore, the companies will benefit rupees eight to Rs 10 lakh a

piece.

More and more companies are entering and creating niche for themselves in the Indian

budget industry, the latest being the fast moving consumer goods (FMCG) company Dabur.

It is coming up with a new fruit flavored beverage called Real Burst.

Indian soft drinks story is old since the time of Rajas Maharaja as they enjoyed several soft

drink like lassie, jaljeera, sharbat and tea etc. Now the Indian people have changed their

consumption pattern into soft drinks. According to Pepsi philosophy, its the madness that

encourages executive to think, to conjure up those creative tactics to knock the fizz out. Thewarriors are face to face once again here in India with different strategies and tactics to

attack the rival. Coca cola is focusing upon the joint ventures with the existing bottlers to

enhance its control on manufacturing in marketing of its products range and attain the

equality standards of its class. Countering it Pepsi has taken the battle in its own hands by

floating as investment of $95 billion to set Pepsi Co. India holdings as a subsidiary for

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company owned bottling operation (COBO). Both the companies are following different path

to reach the same destiny i.e. fetch the bigger portion of aerated soft drink market in India.

Serving annually against the world average of 80 bottles a month. Therefore, they are

putting in their best effort to woe the Indian consumer who has tea, coffee etc. that is why

water tea, coffee and nimbu pani are considered as the competitor of soft drinks.

Cola is well set with its 53 bottling sites throughout the country giving it an edge, over

competition by processing a well built and distribution set up. On the other hand Pepsi with 2

more years in India has been able to set an image of winner this time in India and get the

pulse of Indian soft drink market. The soft drink giants are leaving no stone unturned and

her for the long-terms.

Coca Cola has been penetrating the market through its wide product range with a

determination to change consumption pattern of soft drink in India. Firstly, they upgraded the

whole industry by introducing 300 ml bottles, which in turn had given the industry a booming

growth of 20% as compared to the earlier 5 % they want to develop a Coca culture and are

working on a strategy of offer soft drink in every possible package. In Coca Cola camp, the

idea of competition has not come from Pepsi, but from the other beverages such as Tea,

Coffee, Nimbu Pani and Water etc.

Pepsi is quite aggressive in its approach to Indian consumer. They are desperately working

on the strategy to work for 1.5 hour to buy a bottle of soft drink in comparison to the

international norms of 5 hour, a major hurdle to cross over for both the athletes for getting

No. 1 position.

India is one of the lowest soft drink consuming countries in the world. According to per

capita in India is 5 bottles per year, while highest consumption in USA of 800 bottles per

year. Lower, Lower middle & upper middle class consume 91% of soft drink market.

The consumption diagram graph of soft drink has never, decrease. If once, it has increased.

It is increasing at 24 25% per year. Even in India the market is constantly growing in

1993, the people of India consume only 0.7 lt/head, while in 1995 it increased from 0.7 to

0.93 lt/head, in 1997 it was 1.14 lt/head & in 2001 it was 1.62 lt/head.

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Table 1.1: No of Bottles Produced

Year No of Bottles produced (million)

1989 1968

1990 2070

1991 2195

1992 2490

1993 2800

1994 3000

1995 3240

1996 4000

1997 4450

1998 4920

1999 5670

2000 6480

2001 7000

Source: Research Paper

Market Share in India

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The two global majors Pepsi & Coca Cola dominate the soft drink industry market. Coca

Cola, which had winded up its business from India during the introduction of IERA regimere-entered in India after 16 years letter in 1993. Coca Cola has acquired a major soft drink

market by buying out local brands like Thums up, Limca & Gold Spot from Parle Beverages.

Pepsi although started a couple of years before Coca Cola in 1991, right now it has lower

market share. It has brought over Mumbai based Dukes range of soft drinks. Both Cola

manufactures Pepsi & Coca Cola come up with their own market share & claim to have

claimed to increase their share

Table 1.2: Market Share (in %) 2010

Brand Name Market Share (org figure) Market Share (IMRB)

Pepsi 35.6%

Coca Cola 57.8%

Other Brands 6.6%

Source: Economic Times

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Ch: 6

Company Profile

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6. Company Profile

6.1 Company Profile of Coke

Figure 5.1: CEO Coke

DOUGLASN DAFT

Chairman of the board and Chief Executive officer

ABOUT THE COCA COLA COMPANY CEO

Douglas N. Daft was elected chairman board of director and chief executive officer of the

Coca-Cola company on Feb. 17, 2000 Mr. Daft is the 11th chairman of the board in the

history of company.

Mr. Daft 60 joined the company in 1969 as planning officer in Sydney, Australia office. He

held of increasing responsibility throughout Asia and in 1982 was named vice president of

Coca-Cola Far East Ltd.

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In Dec.1988 Mr. Daft was named president of north pacific division and president of Coca-

Cola (Japan) co. Ltd. He moved the companys Atlanta headquarters.

In 1991 to assume the responsibility of president of the pacific group and in 1991 his

responsibility was expended to include the com. Africa Group and Schweppes Beverage

Division as well as the middle and Far East Group.

Mr. Daft was elected president and Chief operating officer of the Coca-Cola com. In Dec 99.

He serves on the board of Sun Trust Banks, the boys and girls club of America Catalyst the

Cerge-Ei foundation (Centre for economic Research and Graduate Education-Economic

Institute ) in the Czech Republic , the Lauder Institute for Management and International

Studies at the University of Pennsylvania, the Prince of Wales International Business Leader

Forum , the Grocery Manufactures of America The British American Chamber of

Commerce ,the G100,the Woodruff Arts Centre, the Commerce Club, and the McGraw-Hill

Companies. Mr. Daft is a trustee of Emory University, the American Assembly and the

Centre for Strategic &International Studies. He is also a member of the Trilateral

Commission, the Business Council and The Business Round Table.

AROUND THE WORLD

Although Coca-Cola was first created in the United State it quickly became popular

wherever it went. Their first International bottling plants opened in 1906 in Canada, Cubaand Panama soon followed by many more bottling plants in different countries .Today we

produce more than 300 brands in 200 courtiers and more than 70% of their income comes

from outside the U.S, but the real reason they are truly global company is that our product

meet the varied taste preferences of consumer everywhere.

COKE PARTNERS

The Coca-Cola Company works with a wide variety of organization to support health, fitness

and good nutrition.

The Coalition for Healthy and Active America (CHAA) CHAA was formed in 2003 by

concerned organization and national leader to educate parents, children, schools and

communities about the critical roles physical activity and nutrition education play in reversing

the alarming trends of childhood obesity. As a non profit National grassroots coalition, CHAA

is a various advocate for developing health and active lifestyle for Americas youth. CHAA is

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committed to working with schools to rededicate time for physical fitness giving parents the

freedom to their children make their own nutritional choice, building school business model

relationship that benefit our families by support healthy and active lifestyle and finding

solution to the childhood obesity that are both responsible and realistic American Council for

fitness and nutrition. The American Council for Fitness and Nutrition (ACFN) is a group of

food, beverage and consumer products companies, non profit organization and trade

association working together to improve the health of Americans, particularly youth by

encouraging a healthy balance between fitness and nutrition. The cornerstone of all ACFN

initiative is the idea that lasting solution to the nations obesity problem must be based on

sound science and behavioural research. Such policies are likely to help parents and their

children develop eating and exercise habits that lead to a healthier life.

Grocery Manufacture of America The Grocery Manufacture of America (GMA) represents

the food ,beverage and consumer products industry on key issue that affect the ability of

brand manufacture to market their products and deliver superior value to the consumer.

International Food Information Council (IFIC) Foundation the IFIC Foundation is a public

education foundation disseminating sound, science-based information on food safety

nutrition and health. International Life Science Institute (ILSI) is a non profit worldwide

foundation that seeks to improve the well being of the general public through the pursuit of

balance science. Its goal to further to understanding of scientific issue relating to nutrition

food safety toxicology risk assessment and industry.Kidnetic.com is a fun interactive website

that emphasize healthy achieved through s balance of physical activity and responsibility

eating habits The website gives young people and their parents the tools and idea to help

change habits and plant the seeds for healthy families tomorrow.Kidnetic.com is a program

of the International Food Information Council (IFIC) Foundation.

National Association for Sport and Education Association for sport and Physical Education

seeks to enhance knowledge and professional practice in sport and physical activity through

scientific study and dissemination of research based and experimental knowledge to

members and public.

National Soft Drink Association (NSDA) is the trade association for America Soft Drink

Industry serving the pup

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THE PRESENT POSITION OF COKE IN INDIA

Coke is a house hold name and in the lips of every one. In present time every person knows

the name of Coca Cola since India is one of the biggest markets for the Soft Drink Company

and sultry summer from March to the end of October and a huge population has immenselyhelped in the sales of coke in India.

Last year the market share of Coca-Cola was not specific. In this year companys top

management adopted new policy and increased the rate of all brands of Coke. By this

decision top management determined the rate of 300ml Rs.15.And the brand of 200ml

determine the rate of this brand Rs.10 only .By which medium size family can buy and enjoy

Coke. By this decision company marketing share has been increasing. In present time Coke

captured approximate 57.8% market share. Now Coke has made a huge shift away from the

distributors serving the retailers according to the type of service. Due to this Coke has

gained appropriate position in the minds of the retailer .It has now emerged as the winner

and has a good image in the market Cola have thus gained a status symbol mainly

attributed to its standard and well penetrated, advertising and extensive distribution network.

Total soft drink segment is growing at the rate of 10% per year still International standard

area considered the per capita consumption of these serving in rock bottom, less than even

our neighbour Pakistan and Bangladesh where it is four more as much. So with kind of a

market potential coke entered in India in 1991. The government in Pune in 1992 allowed the

plant to establish its first bottling plant. Now the company has grown to about 59 bottling

plants throughout India.

COKE BRANDS IN INDIA ORIGIN

COCA-COLA:

Developed in brass products in 1886, coca-cola is the most recognised and admiredtrademark around the globe. Not to mention the best selling soft drink in the world.

SPRITE:

In 1961, a citrus flavoured drink made its U.S. debut, using sprite boy as inspiration for the

name. This elf with silver hair and a big smile was used in 1940s advertising for coca-cola.

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Sprite is now the fastest growing major soft drink in the U.S., and the worlds most popular

lemon-lime soft drink. But In India It Is not of citrus in nature and is pure caffeinated

carbonated water.

FANTA:

The name FANTA was first registered as a trademark in Germany in 1941, when it was

used for a few years for the soft drink created from available material and flavours. The

name was then revived in 1955 in Naples, Italy, when it was used for the FANTA orange

drink we know today. It is now the trademark name for a line of flavoured drink sold around

the world.

DIET COKE:

The extension of the coca-cola name begun in 1982 with the introduction of diet coke (also

called coca-cola light in some countries). Diet coke quickly becomes the number- one selling

low-calories soft drink in the world.

VANILA COKE:

It is an ice-cream in taste launched in 2004. But it failed miserably in the Indian Markets

LIMCA:

This is thirstquenching beverages features a fresh and light lemon-lime taste and a light

hearted attitude. The Limca brand was introduced in 1971 and acquired by the coca-cola

company in 1993.

MINUTE MADE PULPY ORANGE:

This is a one of a kind natural orange drink introduced by Coke. It does contain natural pulp

but the juice inside is manufactured the same way as all the other drinks are manufactured

in the coke brand.

MAAZA:

Maaza launched in 1984 and acquired by the coca-cola company in 1993, is a non-

carbonated mango soft drink with a rich, juicy natural mango taste.

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THUMPS UP:

In 1993, the coca-cola company acquired this brand, which was originally introduced in

1977. Its strong and fizzy taste makes it unique carbonated Indian cola. It has the highest

market share in the Indian Soft drink industry.

KINLEY WATER:

This is the thirst quenching beverages features fresh the water with the saturated oxygen

level.

GEORGIA:

This was first introduced in 2004 it is hot tea and coffee products by Coke it is mostly sold in

restaurants and not in the local shops it is being sold both in the hot and the cold beveragesformat.

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6.2 The Company Profile of Pepsi

Figure 5.2: CEO PepsiCo

INDRA NOOYI

Chairman of the board and Chief Executive officer

ABOUT THE PEPSICO CEO

Nooyi joined PepsiCo in 1994 and was named president and CFO in 2001. Nooyi has

directed the company's global strategy for more than a decade and led PepsiCo's

restructuring, including the 1997 divestiture of its restaurants into Tricon, now known as

Yum Brands. Nooyi also took the lead in the acquisition ofTropicana in 1998, and merger

with Quaker Oats Company, which also brought Gatorade to PepsiCo. In 2007 she became

the fifth CEO in PepsiCo's 44-year history.

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Business officials rave at her ability to drive deep and hard while maintaining a sense of

heart and fun. According to Business Week, since she started as CFO in 2000[2], the

company's annual revenues have risen 72%, while net profit more than doubled, to $5.6

dollars billion in 2006.

Nooyi was named on Wall Street Journal's list of 50 women to watch in 2007 and 2008, and

was listed among Time's 100 Most Influential People in The World in 2007 and 2008. Forbes

named her the #3 most powerful women in 2008. While CEO of PepsiCo in 2008, Indra

Nooyi earned a total compensation of $14,917,701, which included a base salary of

$1,300,000, a cash bonus of$2,600,000, stocks granted of$6,428,538, and options granted

of$4,382,569.

AROUND THE WORLD

PepsiCo is a world leader in convenient snacks, foods and beverages with revenues of

more than $43 billion and over 198,000 employees. PepsiCo, Inc. is founded by Donald M.

Kendall, President and Chief Executive Officer of Pepsi-Cola and Herman W. Lay,

Chairman and Chief Executive Officer of Frito-Lay, through the merger of the two

companies. 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 is chairman of the Board of Directors of the new company;

Donald M. Kendall is president and chief executive officer. The new company reports sales

of $510 million and has 19,000 employees. 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).Mountain Dew launches its first campaign "Yahoo Mountain Dew ... it'll tickle your

innards."

PEPSI PARTNERS

PepsiCo also has formed partnerships with several brands it does not own, in order to

distribute these or market them with its own brands.

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Frappuccino, Starbucks Double Shot, Starbucks Iced Coffee, Mandarin (license), D&G

(license), Lipton Brisk, Lipton Original Iced Tea,Lipton Iced Tea, Ben & Jerry's Milkshakes,

Dole juices & juice drinks (license), Sunny Delight (produced by PepsiCo forSunny Delight

Beverages)

POSITION OF PEPSI IN INDIA

Total soft drink segment is growing at the rate of 10% per year still International standard

area considered the per capita consumption of the Indian Soft drink industry is rock bottom,

less than even our neighbour Pakistan and Bangladesh where it is four times more than the

Indian consumption rate.PepsiCo established its business operations in India in the year

1989 It is now the 4th largest consumer products company in India PepsiCo has invested

more than USD 1 billion in India since its establishment. PepsiCo has a diverse range of

products from Tasty Treats to Healthy Eats It provides direct and indirect employment to

150,000 people in India It has 41 bottling plants in India and fast catching up to Coke, of

which 13 are company owned and 28 are franchisee owned It has 3 state-of-the-art food

plants in Punjab, Maharashtra and West Bengal

BRANDS OF PEPSI IN INDIA

PEPSI:

Pepsi is a hundred year old brand loved by over 200 million people worldwide. The largest

single selling soft drink brand in India is the ubiquitous 'socialiser' at every occasion 1886,

United States of America. Caleb Bradman, the man with a plan, got on to formulate a

blockbuster digestive drink and decided to call it Brads drink. It was this doctors potion that

was to become Pepsi Cola in 1898, and eventually, Pepsi in 1903. Pepsi has always played

on the front foot and since its inception has come out with revolutionary concepts like Diet, 2L

bottles, recyclable plastic cola bottles and the enviable My Can.

7 UP:

7UP, the refreshing clear drink with natural lemon and lime flavour was created in 1929.

7UP was launched in India in 1990 and its international mascot Fido Dido was used for

advertising in 1992 to position the brand as a cool drink for youngsters. Fido became an

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instant hit with his trendy look, laid back attitude and refreshing take on life. During the

brands early years in India, 7UP gained market leader status in the lemon lime category by

being one of the first to be nationally distributed as well as being marketed as a healthier

alternative to other soft drinks

TROPICANA:

Tropicana was founded in Bradenton, Florida, USA, in 1947. And is now enjoyed almost

everywhere in the world. Carefully nurtured for over 50 years, it has matured into one of the

most respected beverage brands. Today it is the World's no. 1 juice brand and is available in

63 countries. Since 1998, it has been owned by PepsiCo, Inc. Tropicana Premium Gold

was re-launched as Tropicana 100% in year 2008

SLICE:

Slice was launched in India in 1993 as a refreshing mango drink and quickly went on to

become a leading player in the category.

In 2008, Slice was relaunched with a 'winning' product formulation which made the

consumers fall in love with its taste. With refreshed pack graphics and clutter breaking

advertising, Slice has driven strong appeal within the category.

NIMBOOZ:

Nimbooz was launched in India this year on the 28th of February 2009. Latest addition to

portfolio of Pepsi Beverages Nimbooz is a great tasting product which has capitalized on the

existing familiarity & behavior of high frequency consumption of unpackaged / Home made

nimbu pani. It has been true to its Asli Indian Identity by owning and appropriating nimbu

Pani Codes such as the Matka (Earthen Pot) and Squeezer.

MOUNTIAN DEW:

The main formula of Mountain Dew was invented in Virginia, named and first marketed in

Johnson City, Tennessee and Knoxville, Tennessee in 1948. In India, Mountain Dew set the

soft drink category ablaze in 2003 with their iconic launch campaign Cheetah Bhi Peeta

Hai. 2007, the brand was re-launched with a completely new, punchier formulation with

communication that aimed at forging a strong emotional connect with our audience. Thus

came about the "Darr Ke Aage Jeet Hai" campaign, which acknowledged that fear was a

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very real and relevant aspect of the adventurous world and Mountain Dew, as a brand

wanted to encourage all youth in their moment of fear, to believe in themselves and just go

for it because beyond fear, lies victory.

MIRINDA:

Now when we think Mirinda, we think orange. But this soft drink brand has many other fruit

flavors; Mirinda Lemon was launched in 1998 & other flavors like Apple & Batberry that were

launched as in & outs.

Mirinda has always been about a great orange taste, which is now synonymous with the

brand. These were communicated through our great campaigns; the memorable Mirinda

Men to Taste Aisa Chaye Character Fisla Jaye.

AQUAFINA:

Aquafina was first launched in USA in the year 1994 and with its unique purification system

and great taste; Aquafina soon became the best selling brand in the country.

In India, Aquafinas journey began with the Bombay launch in 1999 and it was rolled out

nationally by the year 2000. On the strength of its brand appeal and distribution, Aquafina

has become one of India's leading brands of bottled water in a relatively short span.

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CH: 7

COMPARITIVE ANALYSIS OF

COKE AND PEPSI

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7. Comparative Analysis of Coke and Pepsi

The soft drink market all over the world has been witnessing to neck to neck battle between

the two major players, coca-cola and he Pepsi since the very beginning. The thirst

quenchers are trying to have the major chunk of the pie of carbonated soft drink market.

Both the player is spending their energies in building capacity, infrastructure, promotional

activities etc.

Coca-cola being 11 years older than Pepsi has dominated the scene in most of the soft

drink markets in the world and enjoying leadership in terms of market share. But the coca-

cola people are finding it hard to keep away Pepsi, which has been narrowing the gaps

regularly. the two are posing threats to each other in every nook and corner of the world

wide coca-cola has been earning most of its bread and butter through beverages sales,

Pepsi has multi products portfolio with some portion from the same business.

The two warriors are face to face once again herein India with different strategies and tactics

to attack the rivals. Coca-cola is focussing upon the joint venture with the existing bottlers

(Fobo) franchise owned bottling operations to enhance its control on manufacturing and

marketing of its products range and attain quality standards of its class. Countering its Pepsi

has taken the battle of its own hands by floating as investment of $ 95 billion to set Pepsi

Company. India holdings, as subsidiaries for (Cobo) company owned bottling operations.

Both companies are following different paths to reach the same destination i.e. to grab a

bigger portion of aerated soft drink market. Both consider India as a Hugh potential market,

as per capita consumption here is mere 3 serving annually against the world average of 80.

Therefore, they are putting there best efforts to woo the Indian consumer who has to work

for 1.5 hours to buy a bottle of soft drink. In comparison to international norms minutes, a

major hurdle to cross over for the athletes for getting no. 1 position comparison to the inter.

Coca-cola is well set with its 53 bottling sites through out the country giving it an edge over

competition by processing a well-built bottling and distribution set up. On the other hand,

Pepsi, with two more years in India, has been able to set as image of a winner in India and

has been able to get the pulse of the Indian soft drink market. The soft drink giants are

leaving on stone unturned and her for the long terms.

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Coca-cola has been penetrating the market through its worldwide products range with a

determination to change consumption pattern of soft drink in India. Firstly, they upgraded the

whole industry by introduction 300ml bottles, which in turn had given the industry a booming

growth of 20% as compared to the earlier 5%. They meant to develop a coca culture here

and are working on a strategy to offer soft drink in every possible package. In Coca-Cola

camp, the idea of competition has not come from Pepsi. But from the other beverages such

as tea, coffee, nimbus, pani, water etc. Coke has used a large sum on the visibility of its red

and white logo. They have been going along with aggressive marketing by enrolling Amir

Khan, Akshay Kumar and their advertisement to endorse their brand, the role models of its

targeted consumer the teenagers

Pepsi is quite aggressive in its approach to Indian consumer. They are desperately working

on the strategy to be the winner in the hot cola war between two big barons. According to

Pepsi philosophy, it is the madness that encourages executive to think, to conjure up those

creative tactics to knock the fizz out of their competition.. Pepsi have increased the fizz in

the market place by introducing the dispensers called fountain Pepsi and have been

enjoying a lead over its rival there. Coca-cola on the other hand, has been working in the

saying slow and steady wins the races side by retailing to every more of its competitors.

They have procured the shield of thumps up with a handsome market share in Indian soft

drink market. Countering commercial that used two chimpanzees to rock a snoop at coke,

thumps up with the ad line, dont be bender, and taste the thunder Also. Thumps up has

been positioned now them very near to that young image of Pepsi and giving it a through

time.

These cool merchants have put everything on fire. Its coke gets the status of the official

drink of the wills. World cup, Pepsi blushes as nothing official about it. As thumps up

projected as saare jahan se achcha, pepsi was passionate enough with freedom to be and

now the yeh dil maange more when thumps up came with thunder blast, the offered Pepsi

stuff card. If red is meant for coke, Pepsi chosen to be blue.

In the U.S., its a closer race between coke and Pepsi, said Bonnie Herzog, an industry

analyst with smith Barney. But when you take a look outside the U.S.. I think coca-cola has

the major lead.

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Indeed, 75% of Cokes profits now come from the foreign markets it dominates. While back

home the slugfest has gone on for decades.

I think makes us all better, said Pepsi vice president of marketing; Katie Lacey. Its alone

thing about working in a very competitive category. You absolutely are on your toes. We do

not let it dictate how are or think everyday. We are focused on how we are going to grow our

brands.

With public opinion split, theres is no. of problem for both coke and Pepsi. Volumes of

carbonated soft drink I north America is growing at less than one present a year. Meanwhile,

sports drinks like Gatorade are growing at 15% year. And bottled water is expending by 26

permanent annually. In a saturated soft drink market; water is where the growth and money

are, according to Herzog. For now, Pepsis Aquafina is beating cokes Dasani in the water

wars.

Its just the latest front in a battle between hundreds of Coke and Pepsi brands. Diet coke vs

diet pepsi, sprite vs. mountain dew, nestle vs. Lipton Tropicana vs. minute maid. And the list

goes on.

But for Pepsi- its not all about drinks. Some 60% of its profits come from its snack business.

From Fritos to lays to crack jack and Tostitos, Pepsi has virtual monopoly, with no

competition with coca-cola.

They are going after the younger consumer who purchase a single serve products, at a

convenience store 9-13, said Todd Stender, who fellows the company at Crowell Weedon

and co., and thats really where the profits are.

Cokes, meanwhile, just scored a big coup by winning the soft drink business at subway, a

fast food chain now bigger that McDonalds, that had previously served only Pepsi.

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Figure 6.1: Market Share of Indian Beverage Companies [Market Share (in %) 2010-11]

Market Share

PepsiCo India,

35.60%

Coca-Cola India ,

57.80%

Other Indian

Companies,6.60%

Coca-Cola India

PepsiCo India

Other Indian Companies

Source: Economic Times, org figure

The Pi Chart Shows That Coke has a major lead in India Capturing the huge Chunk of the

market share while Pepsi on the other hand has very less Market share compared to coke

but it is growing.

Table 6.1: Market Share of the Respective Companies [Market Share (in %) 2010]

PepsiCo (2010-11) Coca-Cola (2000-11)

Pepsi 13.1 % Coca Cola 8.2%

7 UP 5.8% Thums Up 16.4%

Mirinda Lemon 0.4% Sprite 12.2 %

Mirinda Orange 8.9% Limca 10.9%

Mountain Dew 5.8% Fanta 10%

Source: Economic Times

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The above table shows the dominance of Coca-Cola in India. Coke had used a good

strategy in buying of established Indian drinks Like Thumbs-up and Limca from Parle Agro

group of companies which now consist of 26% of the market share and thus grabbing a

huge piece of the market. Pepsi on the other hand is mostly surviving on its Pepsi cola

brand of drinks which consist of 13.1% which has the second largest market share after

Thumbs-up. Pepsi has a reason to smile as the 7-up and mountain dew brands are growing

fast and capturing the market share slowly but steadily.

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CH: 8

MARKET RESEARCH ANALYSIS

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8. Market Research Analysis

8.1 Analysis of the Questionnaire

1) Which soft drinks company products do you sell?

Coke Pepsi Both

Table 8.1: Retailers of Coke & Pepsi

Company

Retailers

Coke 72

Pepsi 25

Both 3

Figure 8.1: Graph of Number of retailers Of Coke and Pepsi

72

25

3

0% 10% 20% 30% 40% 50% 60% 70% 80%

Percentage

Coke

Pepsi

Both

Company

Retailers

Retailers

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It was a rare sight to see a restaurant or a panwala selling both the products. And if you see

one then he might be the most hassled person on earth but the retailers of Pepsi are quite

few compared to coke in Delhi. In an area of udyog vihar alone there is only a single retailer

of Pepsi compared to 12 retailers selling Coke

2)Does the soft drink company provide you with refrigeration facilities?

Coke Yes No

Pepsi Yes No

Yes the company does provide refrigeration facilities to the retailer who has to be an

exclusive seller of either Coke or Pepsi. If the person id selling both he might have to

purchase the fridge or use his own fridge to sell the product. This is one of the main reasons

that there are extremely less retailers who sell both

3)Dose the company provide you with mechanics for the repair andmaintenance of fridges?

Coke Yes No

Pepsi Yes No

The company does provide mechanics and maintenance facilities free of cost to the retailer

here no discrimination is done when it comes to the repair and maintenance of the fridges

among retailers. The Maintenance and repair of the fridges are done free of cost

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4) What are the conditions of bottles provided by the company?

Coke Excellent Good Neutral Bad Worse

Pepsi Excellent Good Neutral Bad Worse

COKE

Table 8.2: Conditions of Bottles of Coke rated by Retailers

Conditions Coke

EXCELLENT 24

GOOD 36NEUTRAL 14

BAD 16

WORSE 10

Fig 8.2: Graph of Conditions of bottles in Coke

Coke

24

36

1416

10

0

5

10

15

20

25

30

35

40

EXCELLENT GOOD NEUTRAL BAD WORSE

Condition

Coke

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Table 8.3 Weighted Mean of the Conditions of bottles of Coke

Conditions Coke Rank W.A

EXCELLENT 24 1 24 Weighted

GOOD 36 2 72 MEANNEUTRAL 14 3 42 2.52

BAD 16 4 64WORSE 10 5 50

100 252

Here the mean after taking out the weighted average is 2.52 which is exactly the middle

mark for coke where the retailers are neither satisfied nor dissatisfied with the quality of

bottles that come from coke. They find the quality ok thus that means there is room for

improvement for the quality of bottles provided by coke.

PEPSI

Table 8.4: Conditions of Bottles of Pepsi rated by Retailers

Conditions PepsiEXCELLEN

T 22

GOOD 22

NEUTRAL 32

BAD 14

WORSE 10

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Figure 8.3: Graph of the Conditions Of bottles Of Pepsi

Pepsi

22 22

32

14

10

0

5

10

15

20

25

30

35

EXCELLENT GOOD NEUTRAL BAD WORSE

Conditions

Pepsi

Table 8.6:Weighted Mean of Conditions Of bottles Of Pepsi

Here the

weighted mean

average is

lower in pepsithan in coke signalling that the quality is a bit less than compared to coke when it comes to

bottles.

Both the companies have certain rules and regulations considering the refilling of old bottles

and then using new bottles. Both the companies sterilises the bottles before reusing them.

Here the retailers are more satisfied with the conditions of the bottles of Coke

Conditions Pepsi Rank W.A EXCELLEN

T 22 1 22GOOD 22 2 44 Weighted

NEUTRAL 32 3 96 Mean

BAD 14 4 56 2.68

WORSE 10 5 50

100 268

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5)If the bottles are broken in transit or in the shop due to naturalcauses or calamities then does the company bear the loss for you?

Coke Yes No

Pepsi Yes No

Here both the companies follow same policy of cap in the bottle. If the bottle is broken in

transit the company replaces the bottle and yes the company replaces the bottle any time

when it is broken provided the cap of the bottle is still intact.

6)If the products have crossed their expiry dates then dose thecompany replace the products for you?

Coke Yes No

Pepsi Yes No

7)If yes then

Coke Replace at your own cost Buy Back Replace products free of charge

Pepsi Replace at your own cost Buy Back Replace products free of charge

The expiration of bottles or people not consuming the drinks is a rare case. But just in case

both the companies replace their products if it has crossed the expiration date free of

charge.

8) How many distributors of the company are there in your area?

Coke 0-2 2-4 4-6 more than 6

Pepsi 0-2 2-4 4-6 more than 6

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A particular area consist of maximum 3 to minimum 1 distributor depending on the size and

type of area Vatva and Naroda have 3 distributors while Paldi and Ellis bridge have 2

distributors and Vijay char Rasta area or Memnagar has only 1 distributor for the drinks. In

paladin & bhatta Area has one Pepsi Seller and also has one seller Near NID and one in

Shantivan which is extremely less compared to Coke

9)When do you replenish your stock?

Weekly Fortnightly Monthly Quarterly

Table 8.7: Time of Replenishing of Stock By retailers

TimeReplen

ish

WEEKLY 85FORTNIGH

TLY 15

MONTHLY 0

QUATERLY 0

Figure 8.4: Graph of Replenishment of Stock by Retailers

85

15

0%

0%

0 10 20 30 40 50 60 70 80 90

Time

WEEKLY

FORTNIGHTLY

MONTHLY

QUATERLY

%

Replinhment

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The retailers who replenish fortnightly are mostly users of wending machines

where they replenish their stock fortnightly

10) What is the quantity you usually order?

The quantity is usually ordered with depending on the demand or the amount the retailers

thinks he can sell. Usually the pan walas order 2 to 3 crates. But there were other retailers

ordering more or less than the above specified quantity

10)Are you satisfied with your replenishment you get?

Coke Very Satisfied Satisfied Neutral Dissatisfied

Very Dissatisfied

Pepsi Very Satisfied Satisfied Neutral Dissatisfied

Very Dissatisfied

COKE

Table 8.8: Satisfaction level of Replenishment of coke

Satisfaction Level

Replenishment of Coke

Very

satisfied 23Satisfied 17

Neutral 34

Dissatisfied 24very

dissatisfied 2

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Table 8.9: Weighted average mean of replenishment satisfaction level

SatisfactionLevel

Replenishment ofCoke Rank W.A

Very satisfied 23 1 23 Weightedsatisfied 17 2 34 Mean

Neutral 34 3 102 2.65dissatisfied 24 4 96

very dissatisfied 2 5 10100 265

Fig 8.5 Graph ofSatisfaction level of Replenishment of coke

23

17

34

24

2

0 5 10 15 20 25 30 35

Very satisfied

satisfied

Neutral

dissatisfied

very dissatisfied

%



The retailers are not satisfied with the replenishment of Coke as retailers who mostly want to

sell Thumbs-up or Sprite only are the ones who are unsatisfied with the replenishment of

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coke as 1 to 2 crates of Coke bottles are pushed along together with thumbs-up or Sprite for

the retailers to sell.

PEPSI

Table 8.10: Satisfaction level of Replenishment of pepsi

Satisfaction Level

Replenishment of Pepsi

Verysatisfied 12

satisfied 37

Neutral 34dissatisfie

d 17

verydissatisfie

d 0

Table 8.11: Weighted average mean of replenishment satisfaction level

SatisfactionLevel

Replenishment ofPepsi Rank W.A

Very satisfied 12 1 12 Weightedsatisfied 37 2 74 Mean

Neutral 34 3 102 2.56

dissatisfied 17 4 68


Fig 8.5 Graph ofSatisfaction level of Replenishment of pepsi

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12

37

34

17

0

0 5 10 15 20 25 30 35 40

Very satisfied

satisfied

Neutral

dissatisfied

very dissatisfied

%



The Retailers of pepsi are more satisfied with the retailers of coke as there is no pushing

incidence when it comes to pepsi. The market for Pepsi is 13% which is the second highest

in the country after thumbs-up. They give with retailer whatever replenishment they need

The retailers are more satisfied with the replenishment of Pepsi rather than coke because

the people of Delhi generally favour Thumbs-Up rather than coke and thus the preference of

coke is low compared to thumbs-up so sometimes 1 to 2 cerates are sometimes pushed to

the retailer to sell coke unlike Pepsi where it sells the products which the retailer desire

11)What is the lead time?

The lead time is one day from the order given. If Order is given on Monday the product

ordered arrives at the doorstep of the retailer on the very next day i.e. Tuesday

12)Are you satisfied with the lead time?


Very Dissatisfied

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Very Dissatisfied

Here the retailers are very satisfied with the lead time and have no negativity about it.

13)Do you place order with the dealer or directly with the company?

Coke Dealer Company

Pepsi Dealer Company

COKE

Table 8.12: Distribution Level in Coke

Coke

Dealership 45

Company 55

Table 8.6: Graph Distribution Level in Coke

[

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Coke

55

45

0

10

20

30

40

50

60

Dealership Company

%

Coke

Coke has a mixture of dealership and direct company to middle man dealings. The company

has its own dealers and the brand of thumbs-up and sprite which have the highest market

share. The company 5 years ago use to deal with the retailers through dealership but now

slowly removing with the middle man and directly deals with the retailers

PEPSI

Table 8.13: Distribution Level in Pepsi

Pepsi

Dealership 100

Company 0

Table 8.7: Graph Distribution Level in Pepsi

[

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Pepsi

0

100

0

20

40

60

80

100

120

dealership Company

%

Pepsi

PepsiCo dose not have direct dealings with the retailers. It first sells it product to the dealers

and then from dealers to the retailers. All the grievances and orders or communication for

PepsiCo is done by the dealers

14)Any schemes or discounts in bulk buying?

Coke Yes No

Pepsi Yes No

The company dose gives discounts or gifts in bulk buying. For example the company

sometimes give an extra crate of coke depending on the amount of order. Sometimes it may

not be in margins or crates of coke but in gifts like a handbag or wall clock or items to or

associative needed by the shop

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15)What are the payment conditions of the company?

Coke pay in advance pays on arrival of the product pay to

the salesman later

Pepsi pay in advance pay on arrival of the product pay to

the salesman later

Here in both the companies the retailers have to pay check to the sales man on

arrival of the product.

16)Are you satisfied with the payment conditions?


Very Dissatisfied


Very Dissatisfied

Here the retailers of both the companies are extremely satisfied by the company norms ofpayment and dont have any negativities about it.

17)Are you satisfied with the margins given to you by the company?

Coke Very Satisfied Satisfied Neutral Dissatisfied VeryDissatisfied

Pepsi Very Satisfied Satisfied Neutral Dissatisfied Very

Dissatisfied

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COKE

Table 8.14: Satisfaction Level in Margin of Coke

Satisfaction level

Marginof Coke

Verysatisfied 0

Satisfied 17

Neutral 49Dissatisfie

d 28very

dissatisfied 6

Table 8.15: Weighted Average Mean of Satisfaction Level Coke

Satisfactionlevel Margin of Coke Rank W.A

Very satisfied 0 1 0 Weighted

satisfied 17 2 34 MeanNeutral 49 3 147 3.23



Table 8.8: Graph Satisfaction Level in Coke

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0

17

49

28

6

0 10 20 30 40 50

Very satisfied

satisfied

Neutral

dissatisfied

very dissatisfied

%

Margin of Coke

Margin of Coke

Here the retailers are more dissatisfied with the margin available of coke as they are given

maximum Rs 1 to Rs 1.5 and in which they have to pay their own refrigeration electricity.

The retailers always came up with the answer that that coke can give more margins to them.

PEPSI

Table 8.16: Satisfaction Level in Margin of Pepsi

Satisfaction level

Marginof Pepsi

Verysatisfied 0

Satisfied 11

Neutral 60Dissatisfie

d 25

verydissatisfied 4

Table 8.17: Weighted Average Mean of Satisfaction Level Pepsi

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Satisfactionlevel Margin of Pepsi Rank W.A

Very satisfied 0 1 0 Weighted

satisfied 11 2 22 Mean

Neutral 60 3 180 3.22



Figure 8.8: Graph Satisfaction Level in Pepsi

0

11

60

25

4

0 10 20 30 40 50 60

%

Very satisfied

satisfied

Neutral

dissatisfied

very dissatisfied

Margin of Pepsi

Margin of Pepsi

Here also the retailers feel the same about Pepsi as they feel that they can receive more

margins from the company. Here the retailers are more dissatisfied than satisfied.

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18)According to you which factor plays a major role in achieving salesfor Coke or Pepsi? (Rank 1-6)

Coke Pepsi

Brand Name

Price

Availability

Loyalty

Quality

Packaging

(Here to solve the above question we used SPSS instead of Excel to solve the question)

COKE

Table 8.18: Ranked Brand Name Coke

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Brand name

Frequency Percent Valid Percent

Cumulative

Percent

Valid 1.00 34 34.0 34.0 34.0

2.00 19 19.0 19.0 53.0

3.00 35 35.0 35.0 88.0

4.00 12 12.0 12.0 100.0

Total 100 100.0 100.0

Figure 8.9: Graph Ranked brand name Of Coke

The brand name of coke is given a mean of 2.25 to coke stating it to be one of the

important factors for the sales of coke it has given the least mean to the brand name.

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Table 8.19: Ranked Price of Coke

Price


Cumulative

Percent

Valid 2.00 6 6.0 6.0 6.0

3.00 15 15.0 15.0 21.0

4.00 21 21.0 21.0 42.0

5.00 28 28.0 28.0 70.0

6.00 30 30.0 30.0 100.0

Total 100 100.0 100.0

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Figure 8.10: Graph Price of Coke

The retailers have ranked the price of the coke brand which is the second least amean of 4.61 stating that price is not a major factor when it comes to bottled

beverages of Coke. People do not see the price of the product and buy it. They buy it

usually out of thirst or taste of the product

Table 8.19: Ranked Availability Coke

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Availability


Cumulative

Percent

Valid 1.00 20 20.0 20.0 20.0

2.00 30 30.0 30.0 50.0

3.00 11 11.0 11.0 61.0

4.00 25 25.0 25.0 86.0

5.00 14 14.0 14.0 100.0

Total 100 100.0 100.0

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Figure 8.11: Graph Ranked Availability of Coke

The Availability of coke is a third major contributor to the sales of coke since it is

evident that retailers of coke are more than pepsi. So even though a person may be

loyal to pepsi but if the availability of retailers of pepsi is less then he will surely sift

to coke for the time being. Thus more number of retailers means more sales of coke

Table 8.20: Ranked Loyalty Coke

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Loyalty


Cumulative

Percent

Valid 1.00 30 30.0 30.0 30.0

2.00 23 23.0 23.0 53.0

3.00 16 16.0 16.0 69.0

4.00 17 17.0 17.0 86.0

6.00 14 14.0 14.0 100.0

Total 100 100.0 100.0

Figure 8.12: Graph Ranked Loyalty of Coke

Loyalty is another factor contributing to the sales of coke as a lot of people are loyal

to the thumbs-up brand and also the sprite and Limca brands of coke as there is a

major fan following for some of the brands of coke in India it is able to hold a major

part of the market share in India.

Table 8.21: Ranked Quality Coke

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Quality


Cumulative

Percent

Valid 1.00 16 16.0 16.0 16.0

2.00 22 22.0 22.0 38.0

3.00 23 23.0 23.0 61.0

4.00 11 11.0 11.0 72.0

5.00 22 22.0 22.0 94.0

6.00 6 6.0 6.0 100.0

Total 100 100.0 100.0

Figure 8.13: Graph Ranked Quality of Coke

Here quality is another important factor in the sales of coke after the pesticide issue

and the later enrolment of brand Ambassador Amir Khan for coke the people have

again jumped the Coke band wagon. The increasing sales of Coca- Cola are the

presence of a legible and a strong brand ambassador and the great improvement in

the quality of the products of Coca-cola. It could also be that the pesticide issue was

a blessing in disguise of coca-cola

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Table 8.22: Ranked Packaging Coke

Packaging


Cumulative

Percent

Valid 4.00 14 14.0 14.0 14.0

5.00 36 36.0 36.0 50.0

6.00 50 50.0 50.0 100.0

Total 100 100.0 100.0

Figure 8.14: Graph Ranked Packaging of Coke

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Packaging is the least important when it comes to the sales of the bottled products as

they do not effect sales at all. People are not induced by packaging at all they just buy

the product for the taste brand name and loyalty towards the product

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Over all you can see the least meaned attribute is Brand name loyalty and then

quality which is a big factor that plays a role in the sales of coke. The retailers

say that the packaging or the price dose not matter to the customers but they

should get the product that they liked. And also coke is available almost

everywhere it has got more retail chains compared to that of Pepsi

The Shopkeepers also told the story of thumbs-up which is has the highest

market share in the soft drinks market and coke has got success mainly due

to thumbs-up and also mentioned that cokes advertisements are much better

than compared to Pepsi.

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PEPSI

Table 8.23: Ranked Brand Name Pepsi

Figure

8.15:

Graph

Ranked

Brand

name of

Pepsi

Brand name


Cumulative

Percent

Valid 1.00 26 26.0 26.0 26.0

2.00 21 21.0 21.0 47.0

3.00 27 27.0 27.0 74.0

4.00 17 17.0 17.0 91.0

5.00 5 5.0 5.0 96.0

6.00 4 4.0 4.0 100.0

Total 100 100.0 100.0

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The brand name of Pepsi is given a mean of 2.66 stating it to be one of the important

factors for the sales of the brand; it has given the least mean to the brand name.

Compared to coke the brand rating for pepsi is less

Table 8.24: Ranked Price Pepsi

Price


Cumulative

Percent

Valid 1.00 11 11.0 11.0 11.0

2.00 17 17.0 17.0 28.0

3.00 11 11.0 11.0 39.0

4.00 20 20.0 20.0 59.0

5.00 10 10.0 10.0 69.0

6.00 31 31.0 31.0 100.0

Total 100 100.0 100.0

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Figure 8.16: Graph Ranked Price Pepsi

The retailers have ranked the price of the PepsiCo brand which is the second least a

mean of 4.61 stating that price is not a major factor when it comes to bottled

beverages of Coke. People do not see the price of the product and buy it. They buy it

usually out of thirst or taste of the product

Table 8.25: Ranked Availability Pepsi

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Availability


Cumulative

Percent

Valid 2.00 10 10.0 10.0 10.0

3.00 26 26.0 26.0 36.0

4.00 27 27.0 27.0 63.0

5.00 31 31.0 31.0 94.0

6.00 6 6.0 6.0 100.0

Total 100 100.0 100.0

Figure 8.17: Graph Ranked Availability Pepsi

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The Availability rating of Pepsi is much less compared to coke the coke rating is 2.88while the rating of PepsiCo is 3.97 which are much less compared Coke. Maybe the

reasons for less market share is the less availability of pepsi compared to coke

Table 8.26: Ranked Loyalty Pepsi

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Loyalty


Cumulative

Percent

Valid 1.00 33 33.0 33.0 33.0

2.00 21 21.0 21.0 54.0

3.00 17 17.0 17.0 71.0

4.00 9 9.0 9.0 80.0

5.00 15 15.0 15.0 95.0

6.00 5 5.0 5.0 100.0

Total 100 100.0 100.0

Figure 8.18: Graph Ranked Loyalty Pepsi

Loyalty is a major factor for the sales of PepsiCo as the retailers suggest that many

people like pepsi and stick to it and thats why the presence of pepsi is there in the

Indian market there is a huge fan following of the mountain dew brand. The retailers

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have given a mean rank of loyalty 2.67 to pepsi which is more or less as same as the

loyalty rating of coke sometimes bettering the loyalty of coke

Table 8.27: Ranked Quality Pepsi

Quality


Cumulative

Percent

Valid 1.00 21 21.0 21.0 21.0

2.00 21 21.0 21.0 42.0

3.00 19 19.0 19.0 61.0

4.00 16 16.0 16.0 77.0

5.00 11 11.0 11.0 88.0

6.00 12 12.0 12.0 100.0

Total 100 100.0 100.0

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Figure 8.19: Graph Ranked Quality Pepsi

The quality of pepsi was never in doubt but here the quality rating of pepsi is given

here more ranking compared to coke. The coke quality ranking was given less due to

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the pesticide issue. Here the mean rank is 3.11 given by the retailers to the brand

Pepsi

Table 8.18: Ranked Packaging Pepsi

Packaging


Cumulative

Percent

Valid 1.00 9 9.0 9.0 9.0

2.00 10 10.0 10.0 19.0

4.00 11 11.0 11.0 30.0

5.00 28 28.0 28.0 58.0

6.00 42 42.0 42.0 100.0

Total 100 100.0 100.0

Figure 8.9: Graph Ranked Packaging Pepsi

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Packaging is the least important when it comes to the sales of the bottled products.

The retailers have given a mean rank of 4.65 to the packaging of the product, as they

do not affect sales at all. People are not induced by packaging at all they just buy the

product for the taste brand name and loyalty towards the product

Over all you can see above that the brand name and loyalty being the lowestmean thus we can say t

Documents

Sales Mgmt Final Project