Project Report

Marketing Strategy, Segmentation,

Targeting, Positioning and Marketing mix
(4Ps – Product, Price, Place and
Promotion) of COCA-COLA and PEPSI

DATE -7th NOVEMBER, 2019

GROUP MEMBERS-

1) MADHAV SINDHWANI M18BBA071

2) AYUSH ARORA M18BBA084
3) KARTIKAY M18BBA001
4) SIDDHARTH PATNI M18BBA140
5) VAIBHAV TYAGI M18BBA081
6) ABHAY AGARWAL M18BBA093
 CHAPTER 1

INTRODUCTION TO BEVERAGE INDUSTRY

BEVERAGE
Any form of liquid specifically ready for human consumption. Beverages in addition to
basic need form part of day to day life of human society. Different types of beverages are
as follow:
1. Water
Even though most beverages include juice, soft drinks, and carbonated drinks, all
of them have some form of water in them. As a matter of fact, water itself is often
not classified as a beverage, and the word beverage has been defined as not
referring to water but the bottled water that's processed through correct filtration
and purification comes under the beverage category.

2. Soft Drinks
A soft drink is any beverage that does not contain alcohol in them. The name
"soft drink" specifies a lack of alcohol by way of distinction to the term "hard
drink". The term "drink", while technically neutral, sometimes carries references
of alcoholic content. Beverages like colas, seasoned water, sparkling water, iced
tea, lemonade, squash, and fruit punch are among the most consumed common
types of soft drinks. Many effervescent soft drinks are optionally offered in
versions sugary with sugars or with non-caloric sweeteners.

3. Hot Beverages
Coffee-based beverages: Cappuccino, Coffee Espresso, Café au lait, Frappe,
Flavoured coffees (mocha etc), Hot chocolate: It is a heated beverage that
typically consists of shaved chocolate or cocoa powder, heated milk or water, and
sugar.

4. Non - Alcohol Beverages

A non-alcoholic beverage is a beverage that contains no alcohol. Non-alcoholic
mixed drinks such as punches, "virgin cocktails", or "mock tails" are often
consumed by children or people who are wishing to enjoy flavourful drinks
without alcohol. Non-alcoholic beverages contain not quite .5 percent alcohol by
 volume. It also includes drinks that have undergone an alcohol removal process
such as non-alcoholic beers and de-alcoholised wines.

CHAPTER 2
INDUSTRIAL LEADERS (COCA COLA & PEPSI)
At the core of the drink business is that the effervescent soft-drink class. Soft drink acquires
51% of market share of the total beverage market. Soft drink can be further segregated into
carbonated drinks such as Coca-Cola, Pepsi, Thumbs up, Diet coke, Diet Pepsi etc. and non-
carbonated drinks such as Orange, Cloudy lime, Clear lime and Mango. The leading players
in beverage market area unit Coke and Pepsi, that own the majority the North American
market’s most widely distributed and known brands. They are dominant in world markets as
well. These companies’ products occupy large portions of any hypermarket’s shelf space,
often covering more territory than real food categories like dairy products, meat etc.

HISTORY OF COCA COLA

Coca-Cola set out as associate degree insignificant one-man business and over the last one
hundred and ten years has fully-fledged into one of the largest companies in the world. Dr.
John Pemberton, an Atlanta pharmacist, invented Coca-Cola. He invented the formula in a
three-legged brass kettle in his backyard on May 8, 1886. He mixed a combination of lime,
cinnamon, coca leaves, and the seeds of a Brazilian shrub to make the wonderful beverage.
Coca-Cola debuted in Atlanta's largest pharmacy, Jacob's Pharmacy, as a five-cent non-
carbonated beverage. Later, the carbonated water was added to the syrup to make the
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 outpace closest competitor by more than two to
one. One in every 2 cola and one in every 3 soft drinks is a Coca-Cola product. The best-
known brand in the world is sold in about one hundred and forty countries to 5.8 billion
people in eighty diverse languages. Therefore, Coca-Cola is the largest soft drink company in
the world. Advertisements for cola started on the radio within the 1930s and on the tv in
1950. Currently Coca-Cola is publicized on over 5 hundred TV channels round the world.
 HISTORY OF PEPSICO

Born within the Carolinas in 1898, Pepsi-Cola has a long and rich history. The drink is the
creation of Caleb Bradham, a pharmacist and drugstore owner in New Bern, North Carolina.
The summer of 1898, routinely, was hot and humid in New Bern, North Carolina. So, a
young health care provider named Caleb Bradham began experimenting with combos of
spices, juices, and syrups trying to make a refreshing new drink to serve his customers. He
succeeded on the far side all expectations as a result of the fancied the nutrient familiar round
the world as Pepsi-Cola. Caleb Bradham knew that to keep people coming back to his
pharmacy, he would have to turn it into a gathering place. He did so by creating his own
special beverage, a soft drink. His creation, a unique mixture of kola nut extract, vanilla and
rare oils, became so popular his customers called it "Brad's Drink." Caleb decided to rename
it "Pepsi-Cola," and promoted his new soft drink. People responded, and sales of Pepsi-Cola
began to grow, convincing him that he ought to kind an organization to plug the new nutrient.
In 1902, he launched the Pepsi-Cola Company within the back space of his pharmacy and
applied to the U.S. Patent Office for a trademark. At first, he mixed the syrup himself and
sold it entirely through soda fountains. But before long Caleb recognized that a larger chance
existed to bottle cola in order that individuals may drink it anyplace. The business began to
grow, and on June 16, 1903, "Pepsi-Cola" was officially registered with the U.S. Patent
Office. That year, Caleb sold 7,968 gallons of syrup, using the theme line "Exhilarating,
Invigorating, Aids Digestion." He also began giving franchises to bottle cola to freelance
investors, whose number grew from just two in 1905, in the cities of Charlotte and Durham,
North Carolina, to 15 the following year, and 40 by 1907. By the top of 1910, there were
Pepsi-Cola franchises in 24 states. Pepsi Cola's initial bottling line resulted from some less-
than-sophisticated engineering in the back room of Caleb's pharmacy. Building a powerful
franchise system was one in every of Caleb's greatest achievements. Growth was remarkable,
and in 1909 Caleb erected a headquarters so enormous that the town of New Bern pictured it
on a postcard. Famous racing car driver Barney Oldfield endorsed cola in newspaper ads as
"A bully drink...refreshing, a fine bracer before a race." The previous year, Pepsi had been
one of the first companies in the United States to shift from equid transport to automobiles,
and Caleb's business expertise captured widespread attention. He was even mentioned as a
possible candidate for Governor. Pepsi-Cola enjoyed 17 unbroken years of triumph. Caleb
currently promoted Pepsi sales with the saying, "Drink Pepsi-Cola. It will satisfy you."
 MARKET SHARE IN INDIA

These two soft drink companies (Coca cola & Pepsi) capture the major share of the soft drink
business and perpetually stay within the war to urge the bulk of market share with every
other. These companies always be pioneer in using various advanced technology and method
to become the market leader. These companies present the world new innovative ways of
doing the selling and the way benefit of assorted opportunities and the way to use your3 plus
point in a healthier way. In Asian nation presently colas (carbonated soft drinks) product
contains sixty-one and non-cola segment constitutes twelve months of the overall drink
market whereas a pair of is roofed beneath alternative various drinks like fruit crush, cold
low, cold tea etc.

OPPORTUNITY IN INDIAN MARKET

As in India, around 120 billion litres of beverage are consumed every year, of which only 5
percent are in packaged segment and if we compare per head consumption of soft drink in
Asian country to America it's 6 is to 700. So, looking at these aspects we can say that there is
lot of scope for these two soft drink giants in India to develop their market as the stakes are
huge in Indian market.

MARKETING STRATEGY OF COCA COLA AND PEPSICO

CHAPTER 3
SEGMENTATION OF MARKET
A market segment comprises of a group of customers who share a similar set of needs
and wants. Rather than generating the segment the marketer’s task is to classify them and
decide which one to target. Leading beverage corporations Coca-Cola and Pepsi follow
the similar segmentation strategy for target marketing.

3.1 MASS MARKETING

However, in several its widespread product each the businesses follow the
mass promoting approach. In this type of segmentation, companies target the whole
market and not any segment of the population.
3.2 TARGETED MARKETING
Although the targeted cluster of the corporate is that the whole population, they want to
earn more revenue from a segment than their other revenue generating sources. For this,
they recognize following bases for segmentation

3.2.1 GEOGRAPHICAL
3.2.1.1 REGION
Both corporations treat hot countries like Asia, Middle East and African differently in
comparison to cold countries. As in tropical countries, consumption of soft drinks is 70%
in summer and half-hour in winter season whereas in EUROPEAN countries its
consumption is almost uniform.
So beverage corporations like totally different promoting methods in Asian and
European countries. In countries like India and Islamic Republic of Pakistan, these
companies invest huge resources within the season of summers, and their target is
domestic users, restaurants, school and college canteens and even rural chaupals. While
in winter season their target is mainly party users and high-income group consumers.

RURAL VS. URBAN MARKET

Coca-Cola Company is one of the first global majors to have noticed the potential spin
offs from the country’s rural market. Population of Rural sector is a lot of acutely aware
a lot of regarding the price whereas Population of Urban sector is a lot of acutely aware
regarding the standard and brand name of the product. So, Coke and PepsiCo in Year
2002 bring the 200 ml bottle at Rs.5 specifically targeted at the agricultural sector in
order that beverage will come about of the native drink like lemon, sugarcane juice an d
Tea etc. Both the businesses Coca-Cola and PepsiCo have adopted completely different
selling strategy for rural and urban areas

DEMOGRAPHIC SEGMENTATION
AGE
Average age of Indian population is a smaller amount thirty
eight years. therefore targeting young generation is a helpful Marketing strategy for soft
drinks companies. In fact this is the case, all the major brands like Pepsi, coca cola, and
thumps up, mainly target younger generation in India. Similarly in USA, Pepsi targeted
the generation of x (younger generation) as they contains majority of the population and that
they positioned Pepsi within the mind of youth that Pepsi is for the youth

GENDER

Gender based segmentation is very much important. As taste of male and female are
different. Let’s take the instance of cola, thumps up is promoted as masculine soft
drinks whereas coca cola and Fanta are having lightweight taste and primarily targeted
for couples, ladies, and children. Same example is offered in Pepsi Cola, Marinda’ orange
flavour is well-liked among ladies, girls, and children.

CHAPTER 4

PRODUCT MIX

A product are some things that will be offered to a market to satisfy a would like or want,
including physical goods, services, experiences, events, places, properties, organizations,
data, and ideas

If we have a tendency to take the instance soft drink industry, then these factories 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 products classification of Pepsi and cola.

PRODUCT PORTFOLIO

Both the cola majors have a various range of products offered 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 those firms is as

follows:

COCA-COLA

The Coca-Cola Company has over 2800 product in over two hundred countries.
From Inca Kola, a sparkling drinkable drink found in North and South America, and Samurai,
energy drink offered in Asia; to Vita, an African juice drink, and Bon aquamarine,, water found
on 4 continents, their product various variety spans the globe…

The various merchandise of Coca-Cola out there in Asian country are:

_ Coca-Cola: Coca-Cola is that the most well liked and biggest-selling potable soft drink in
history, as well as the best-known product in the world. Available within the following
flavours: Cola, Cola tea leaf, Cola Lemon, Cola Lemon Lime, Cola Orange and Cola
Raspberry.

_ Diet Coke: Diet Coke was born in 1982. Diet Coke is that the drink for people that don’t
want no calories, but plenty of taste. Known as Coca-Cola light in some countries,
it's currently the No.three soft drink in the world. Available within the following flavors:
Black Cherry Cola Vanilla, Cola, Cola tea leaf, Cola Lemon, Cola Lime, Cola Orange and
Cola Raspberry

_ Fanta: Fanta was introduced within the u. s. in 1960. customers around the world,
particularly teens, lovingly associate Fanta with happiness and special times with friends and
family. This positive representational process is driven by the brand's fun, playful personality,
which goes hand in hand with its bright color, daring fruit taste.

_ Kinley: Kinley can be a effervescent plane water that comes in big choice of variants like
tonic, bitter lime, carbonated water and a myriad of fruit flavours.. Available inside the
subsequent flavours: Apple Peach, Bitter Grapefruit, Bitter plane water , Bitter Lime,
Bitter Water, Blueberry Pomegranate, Club Soda, Ginger Ale, lime and Raspberry

_ Limca: This thirst-quenching drinking beverage options a fresh, light -lime taste and with
enjoying(happy) mood. It's a native, national treasure in Asian country(INDIA)
,that's nonheritable by the Coca- Cola Company in 1993.

Limca continues to create a loyal following among young adults who like the light hearted way
it enhances the simplest moments of their lives.

This drink is available in lemon flavour.

_ Sprite: Introduced in 1961, sprite being the world's leading lemon-lime tasteful drink. Sprite
is oversubscribed in additional than one hundred ninety countries and ranks as No. four soft
drink worldwide, with a strong appeal to young people. Millions of individuals relish sprite
because of its crisp, clean easy taste that really quenches your thirst. Sprite encourages you to
be correct to WHO you're and to obey your thirst.

_ Available within the following flavours: soft drink Citrus Grapefruit, Citrus, Lemon and
Lemon Lime
PEPSICO

Pepsi has been always bringing great mood and refreshment to customers for over a
hundred years. From its humble beginnings over a century past, Pepsi-Cola has fully grown to
become one among the simplest known, most-loved product throughout the globe.

Today, the company makes to innovate, creating varies new items, new exciting taste and new
creative packages in varying shapes and sizes to meet the growing demand for convenience
and healthier choices.

The various product of Pepsi Cola on the market 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: Diet Pepsi is that the drink for people that don’t want no calories, but plenty of
taste. Known as Diet Pepsi light in some countries, it's currently the No.three soft drink
in the world.

_ Mirinda- Mirinda was originally produced in Spain. Mirinda is a amazing brand of soft drink
available in various fruit types together with orange, grapefruit, and apple, strawberry,
pineapple, banana, and passionfruit and grape tasty flavours. The orange flavour of Mirinda
represents the majority of Mirinda sales worldwide.

_ 7up: 7 Up may be a complete of a lemon-lime seasoned non-caffeinated drink. The rights

to the brand are command by Dr Pepper Snapple cluster within the u. s., and PepsiCo (in
the rest of the world

_ Mountain Dew: Mountain dew (also referred to as dew as late 2008) could be a potable
soft drink distributed and manufactured by PepsiCo. Mountain Dew usually incurs the
disapproval of health consultants because of its comparatively high caffeine content for
a energy drink.

Slice: Slice could be a line of fruit-flavoured soft drinks factory-made by PepsiCo and
introduced in 1984.Varieties of Slice have enclosed Apple, punch, Grape, edible fruit, Peach,
Mandarin Orange, Pineapple, Strawberry, Cherry Cola, "Red", Cherry-Lime, and Dr Slice.

PRODUCT FILLING STRATEGY

A firm can lengthen its product line by adding lot of items within the present range. There are
many motives behind line filling:

- Reaching for progressive profits

- Attempting to satisfy dealers who complain about lost sales because of missing items in the
line

- Attempting to utilize excess capacity

- Attempting to be the leading full-time company

- Attempting to plug holes to keep out competitors.

Pepsi and Coca-Cola, both the company uses this kind of line filling strategy. Time to time
and

Season to Season Pepsi and Coca cola launches different type of products. Zero coke

(launched on the occasion of release of James bond movie QUANTUM OF SOLACE) by

Coca Cola take place under this sort of product filling marketing. However in absolute terms

there is not any difference in the product ingredients, but their presentation differs and

both the companies introduce their product as if this is a new product.

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 generally have five phases:

- DEVELOPMENT
- INTRODUCTION
- GROWTH
- MATURITY
- DECLINE
In America, carbonated soft drink market is presently 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 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 staggering 700 bottles per head consumption.
 CHAPTER 5

POSITIONING AND PROMOTION

Positioning is that the act of designing the company offering and image to occupy a
distinctive place in the mind of the target market distinguishing from the offerings of the
competitors.
COKE AND PEPSI POSITIONING
Pepsi had introduced in the market after the Coke. So, Coke place itself as the all American
choice as it took the first move advantage. Basically, the Pepsi in America try to
position its product as whole for the society and for the purpose of refreshment, which can
be clearly noticed from their advertisement slogans like
- “any whether is Pepsi whether”
- “the light refreshment”
- “be sociable, have a Pepsi”
They followed this positioning strategy up to 1960 and after analysing 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 their product as a necessity for
youth and after 1960 Pepsi advertisement slogan try to position Pepsi as the brand for
youth which are clearly noticed from their advertisement as follow “ now its Pepsi for those
who thing young”
- “ come alive, you’re in Pepsi generation “
- “ you,re got a lot to live and Pepsi’
- “ yehhaiyoungistaanmerijaan” (in india)
- “ taste the once that’s forever young”
In the 1960s and early 1970s, PepsiCo was a much more belligerent and innovate company
than coke. In this period Pepsi outshine coke to survive.
In early 1975s Pepsi the Pepsi challenge marketing campaign was introduced 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 distributer fills their selves house with their product and
when the patron see solely Coca Cola within the market they're forced to shop for their
product only.
In India Coca-Cola and PepsiCo have shown the door to older celebrity endorsers and
are betting big on rising stars. PepsiCo was parted ways with Shah rukh khan, Sachin
Tendulkar, Rahuldravid, Souravganguly, Mahender Singh dhoni, Ranbir Kapoor, Deepika
Padukone, Ishant Sharma, Rohit Sharma, Sreesanth and Virendersehwag to strengthen its”
youngistaan” brigade PepsiCo signed Asian (of Ghajini fame) to take war to orange
flavor class. PepsiCo had affianced with Chennai super kings for its 7up brand, that is
the most most well-liked drink there. PepsiCo has conjointly signed on Telegu screen
actor Ram charanteja as a part of its youngistaan campaign to endorse Pepsi in Andhra
Pradesh Coca cola try to position themselves as the happiness bringing drink and drink for
every community as visible from above advertisement. As this is often well judged by their
advertisement and their slogans. There is completely different publicity, that depicts that’s
coca cola, is the need for party or Coca Cola brings additional joy and style to the party. Coca
cola has roped in GautamGambir as whole ambassador for the corporates new “coca cola
open happiness” campaign prior to IPL seasons. whereas works wonders, giving
the distinction in consumption patterns within the south, the Coca Cola majors
had bespoken their publicity for the four southern states. Coca cola, on the opposite
hand known the southern market as a good laboratory for its new brands, so much
so that each its pulpy orange drink, minute maid and Fanta apple were 1st launched,
marketed and publicised them before a pan Indian roll-out and a national campaign.
COMMUNICATION STRATEGY
Looking the dynamic atmosphere the Coca Cola and PepsiCo tag their
communication strategy in a very innovative manner. “Imagery” works for carbonated soft
drinks, whereas “functionality” works for alternative class. as an example, to entrench the
“imagery” that Pepsi is the brand for youthfulness and irreverence; the corporate
introduced the youngistaan business with the perspective, self-belief and can-do spirit. In
contrast, Tropicana business has to tell shoppers “it’s one hundred percent juice”.
POSITIONING OF PRODUCT LINE EXTENSION
(COKE AND PEPSI)
Pepsi and coke have varied of product in their basket, that are targeted to completely
different market
segment and their positioning is done in that way.

THUMS UP (COCA COLA) & MOUNTAIN DEW (PEPSICO)

Thums up of cola and mountain dew of Pepsi are targeted to the courageous and
energetic those that have an interest in journey and love taking risk to succeed. The
advertisement of each the beverage positions them in mind of client as the strong soft
drink. Thums up campaign, however, has been led by Akshaykumar along with his gravity
defying stunts within the forefront. equally mountain dew giving promotion like “darr ke
agajeethai” position it as strong soft drink in mind of client. GATORADE (PEPSICO)
Gatorade of PepsiCo has primarily targeted sport-loving persons. so it is launched launched
as the sports drink and it is also very much successful. Its promotion is basically restricted to
the sporting arena on position it as sports drink.
TROPICANA & MINUTE MAID
Tropicana of PepsiCo and Minute Maid of Coca cola specially targeted to health
conscious customers and want health drink having natural energy in it. These drinks return
under the class of juices thus these drink primarily launched to transfer the patron,
which drink juices to Tropicana and Minute maid.
MIRINDA (PEPSICO) & FANTA (COCA COLA)
These drinks are specially launched for the woman sector of the population and these drinks
are positioned in this method solely. within the promotion conjointly they
take woman temperament for the
promotion of those product in order that the product create an area in woman 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
not able to position it properly in mind of the client. Then coke discovered that it might
position the tab or dramatized the distinction by surrounding the bathing beauty with 100
empty tab bottles. Armed with the insight, coke flooded the strive screen with ads and backed
them up in stores with show, signs and samples and after that it was a tremendous
success.
So till you're unable to properly position your product in client mind it's
impossible to urge the success. . RELIGION BASED POSITIONING
Positioning helps in making an area within the mind of the customer. If you're ready to
position your product within the right area you may get the rocking results. there's the
interesting case concerning positioning that however a local soft drink company through
appropriate positioning able to beat the international beverage corporations (Coke and
Pepsi).Mecca cola is local soft drink company of of Saudi Arabia. once coke
and Pepsi enter within the market of of Saudi Arabia they start gaining the key share of the
market and also the share of Mecca cola starts declining. thus it's turning
into terribly tough for the Mecca cola to survive against the international brand. thus, to keep
up its market Mecca cola starts positioning itself because the Muslim beverage and coke,
Pepsi as the American soft drink. After that putted emphasis that America is enemy of
Muslim so coca and Pepsi are their enemy too Mecca cola conjointly starts giving
some proportion of profit to organization that are fighting for the rights of
Muslim. thus during this process Mecca cola is been ready to position itself as the beverage
of Muslim and subsequently the market share of Mecca cola exaggerated in
dramatic method and Pepsi and coke are out of the Saudi Arabia market.
This sensible example shows that if you're ready to position yourself within the vital
space of client mind you may dominate the market
CHAPTER 6
PRICING STRATEGY
Price isn't simply variety tag. value comes in several forms and performs several functions. It
is one of the factors that affect the sales in a drastic way
PEPSI PRICING STRATEGY IN 1936
Pepsi gained quality following the introduction in 1936 of a 12-ounce bottle. Initially
priced at 10 cents, sales were slow, however once the value was slashed to 5 cent, sales
increased considerably. Pepsi inspired price-watching customers to modify referring the
coca cola normal of six ounces a bottle for the value of 5 cents (a nickel), rather than the
12-ounces Pepsi oversubscribed at constant value. In 1936 alone five hundred million bottles
of Pepsi were consumed. For 1936 to 1939, Pepsi profit doubled and there's conjointly a
dramatic increase in sales of Pepsi. This case of Pepsi presents the live
example however the evaluation makes distinction in selling process of a firm.
PRICING MIX (COCA COLA AND PEPSI)
There is the time (2002-2003) once cola and Pepsi tried to charm to the lots
through a 200ml bottle priced at Rs.5. It brought down the common value 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 make the price point of the soft drink within the
reach of high potential rural market. Coca cola and Pepsi within
the marketplace currently begin with the fundamental introductory pack, which
is a two hundred milli litre returnable glass bottle priced at Rs.8 and is offered across
low financial gain and rural areas. subsequent pack size is three hundred milli litre at Rs.10
and is concentrated on those willing to pay more at intervals the immediate consumption
arena. Coca cola and Pepsi recently introduced an on-the-go pack as analysis showed it
that subsequent pack of 600ml (mobile) was an excessive amount to consume on the go. The
new on-the-go consumption pack is termed the “express pack” and doing well in
channels like travel, malls, so on, wherever individuals need a single serve and it
is priced at Rs.20. will be packing (250 ml) of Coca cola and Pepsi is priced at Rs.15. The
company conjointly introduced the party pack of 2 litter of the consumption within the party
and is priced at Rs.55. the typical value of this packing reasonable than different packing on
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 45ml. 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 often a
premium and launched drink with energy booster thus it is valued at higher price as compare
to different drink. PepsiCo conjointly introduced their sport drink in five hundred milli
litre packing for Rs.35. As this drink is specially introduced for the specifically
sports section thus it's costlier as compare to different drinks. It conjointly introduced its
Nimbooz in packing of 200ml at Rs.10. Tropicana of PepsiCo comes in packing 200ml at
Rs.15 and in packing 1liter at Rs.65. Coca cola conjointly introduced its pulp orange drink
(Juice), Minute Maid, in India at Rs20 in the 500ml.

CHAPTER 7
DISTRIBUTION CHANNEL
Distribution (or place) is one in every of the four parts selling combine. ofttimes there could
be a sequence of intermediaries, every passing the product down the chain to subsequent
organization, before it finally reaches the buyer or end-user. This method is thought as
the 'distribution chain' or the 'channel’. thus, we are saying that a collection of mutually
beneficial organizations involved within the method of creating a product accessible for the
employment or consumption is grasp as marketing. every of the weather in these
chains can have their own specific needs, that the producer should take under
consideration, alongside those of the all-important end-user.
DISTRIBUTION STRATEGY
Coca cola and PepsiCo are worldwide noted for their marketing .In India the
distribution network of Coca cola had 6.5lakh retailers across the country in 2000 and on the
other hand Pepsi Co's distribution network had six lakh retailers across the country within the
same year. Coca cola and PepsiCo had developed totally different distribution strategy for
urban sector and rural sector. For the urban marketing these firms adopted the
model like direct store distribution, broker warehouse distribution and product & Food
Service (V&FS) systems where as these firms are following the Hub and Spoke model
for rural marketing, within which they divided the various classes of distributors
according to the region they're covering.
RURAL DISTRIBUTION CHANNEL (HUB AND SPOKE MODEL)
Since last 5 years soft drink firms had started penetrating rural promoting conjointly. For
the rural sector these firms are acting on Hub and Spoke model. to achieve result
rural India, Coke commenced by drawing up successful list of high potential villages
from varied districts. thus, to confirm full hundreds, massive distributors (Hubs) were
appointed, and they were supplied from the company's depot in large towns and cities. Full
load provides were offered double weekly against payment by demand draft. On their
smaller distributors (Spokes) in neighboring areas. journey plans on a weekly basis
were provided against money. The hired rickshaws (cycle operated vans) that travelled to
villages daily.
BENEFITS
This model has been utilised by soft drink firms like Pepsi and coca cola to reach
rural market. this technique permits for larger loads to travel long distances and
smaller smaller to travel short distances. so creating the mechanism
large distributors from the corporate depots double every week and therefore
the distributors successively offer to the smaller distributor once every week.
DISTRIBUTION CHANNEL IN URBAN AREAS
Both the soft drink company’s coke and cola adopted a model DSD that's Direct Store
Distribution. during this company directly provides its product to the retailers that helps them
to save the margin, that they offer to the wholesalers and additionally ensures fast handiness
of the product to the distributor. supported its expertise, PepsiCo and Coca Cola had
developed numerous distribution models to supply its product and services to
customers within the US. Besides Direct Store Delivery (DSD they adopted different system
like Broker Warehouse Distribution (BWD) and vendition & Food service (V&FS) systems.

CHAPTER 8
SWOT ANALYSIS OF PEPSI AND COKE

STRENGTHS
Pepsi and Coke has been a vital part of world culture for a very long time. The
products image is loaded with over-romanticizing and fun, this is an image many people
have taken deeply to heart. Pepsi and Coke are the extremely known by masses which I their
greatest strength. Additionally, there system of bottling is one of their greatest
strengths. This allows them to the manage business on a global scale while at the same
time maintain a local approach. The bottling companies are owned locally and operated by
individualistic business people who are authorized to sell product of these cola giant.
PepsiCo and Coca cola are having a huge distribution network in the world, which is
also there one of the greatest strength.
WEAKNESSES
Weaknesses for any business need to be both reduced and monitored in order to
effectively succeed productivity and potency in their business activities. Although the
international sales are increases but there is getting a saturation evident through the
stability in cola drink in USA market and moreover all over the world the customer
liking for cola drink is shifting towards the healthy drink is taking place. Being
addictive of cold drink is also a health problem, because drinking of carbonated soft drink
daily has an effect on your body also.
OPPORTUNITIES
Brand recognition is the vital factor affecting Pepsi and Coke competitive position.
Pepsi and Coke is known well throughout 94% of world today. As in developing
Nations the per head consumption of cold drink is very less which is evident from taking
example of India. In India per person consumption is only 6 bottles as compared to 700
bottles in USA and in Indian market only 5% of the beverage come under packaging. So
looking at these data we can that for these two giant a lot of possibilities are there in
developing market which is now untapped.
THREATS
Currently, the threat of recent viable competitors in the carbonated soft drink industry is not
very substantial. The threat of Substitute, however, is a very real threat. The soft drink
industry is very sturdy, but consumers are not necessarily married to it. Possible substitutes
that endlessly put pressure on both Pepsi and Coke include tea, coffee, juice, milk and
hot chocolate. Even through the Coca cola and Pepsi control nearly 40% of the entire
beverage market, the changing health consciousness of the market could have a serious
affect. Of course, both have already diversified into these markets, but still these Substitute
will remain threat to them. Consumer buying power represents a key threat to the
Pepsi and Coke.