Industry Profile
Industry Profile
There is a very huge market size of the soft drink industries and as per the market size the numbers of competitors are also very huge. In the present scenario there are many soft drink industries in India. Many of them work at the state level and they distribute their product in those areas only. These types of players are known as local players. Apart from these industries there are few more industries which works on the national level or global level and these industries are known as a national companies and multinational companies.
Pepsi Cola Company was launched in 1902 the back room of pharmacy and applied to U.S
patent office for trademark. The business began to grow. On 16th June 1903 Pepsi Cola was officially registered with U.S. patent office. That year Caleb Brand Ham sold 7.968 gallons of syrups, later on he began awarding franchise to bottle Pepsi to independent investors, whose number grew from just two in 1905 in the cities of Charlotte and Durham North Carolina, to 15 following year and 40 by 1907. Today PepsiCo is a well-established New York (U.S.A.) based American ($30.40 million) multinational company. Presently Pepsi Cola is selling on an average of ninety millions bottles per month. Pepsi made its first international move to Russia in 1959. With in thirty years Pepsi emerged as the biggest competitors of Coca-Cola with its presence in 155 countries and working unde its CEO StevenReinmund. In
fact, since PepsiCo and Coca-Cola, the two US-based companies, set up operations in India, never have they achieved the kind of sales growth with their carbonated soft drink (CSD) brands as they have in the past two months. The soft drink industry in India dates to the 1940s when Parle introduced the first branded soft drink called gold spot. Cola giant coca-cola was the first foreign soft drink company to setup its shop in India in 1965. Coca-cola made a very good beginning and dominated the market right from the word go. It faced no competition at that time. The marketing people did not even need to publicize coca-cola.
MARKET SHARE OF PEPSI The marker share of Pepsi IndiaCo Ltd. Is 49% according to financial year 2009. India has a developed capital market so all the Beverage company try to capture the market. Total common share outstanding in September 2007 is 1,610 US Million Doller.
PRODUCT PROFILE
Pepsi entered into the cloudy Lemon category by launching its Mirinda Lemon in1988. In 1993 Pepsi had thirteen bottling plant units. In 1996 the number went up to twenty seven .More plants are being set up and existing one will be expanded with a mission to change taste of Indians who ,when came to refreshing drinks would go back to traditional Nimbu Pani,
Jaljeera. Pepsi was all set to give Indian consumer a taste of internationally famous soft drinks brand. PepsiCo setup operations in India for beverages and snacks food business under Managing Director Mr. Ramesh Vangal who was CEO till April, 1992 .At that time number of employees working in PepsiCo India were only five. In 1994 number of employees increased up to 200 and in 1997 PepsiCo India force has gone up to 2400.
Recently in May, 2001 production of Aquafina was started by Pepsi. In the same year, another flavor of Mirinda Apple was also launched. Pepsi is one of the major sponsors of cricket tournaments in India as well as other sports like football and hockey. In Mohali, Punjab, it has set up a Cricket academy to develop young budding cricketers.
Apart from the business Pepsi concentrated its mind in the social problem of India. (E.g. unemployment, poverty etc.). Most of the bottling plants of Pepsi are located in the backward areas thereby giving huge employment opportunities in these areas. Pepsi is a responsible company undertaking many social projects in and around the bottling plants. These include supports to the education centers, sponsoring inoculation camps, providing free health checkups
Probably high on the list of strengths is Pepsis beverage line up. Pepsi has four soft drinks in the top ten beverages in the world. These brands are Pepsi, Mountain Dew, Diet Pepsi, and Caffeine Free Diet Pepsi. Pepsi also has the No.1 tea in the United States, Lipton Tea. Some other strong brands are All Sport, Slice, Tropicana, Starbucks, Aquafina and a license agreement with Ocean Spray Juices. Pepsi Cola like any company has weaknesses. Ironically, the one strength that has been credited for most of its success in the past has now become a weakness for Pepsi. This former strength is the franchise system. The franchise system in Pepsi Corporate view has become a liability. Pepsi in todays market must be able to act as one instead of several separate units. The franchise system has become a hurdle to Pepsi because many of these franchises have become very strong and will not be dictated by PepsiCo on how to handle their operations. Some of these franchises are unwilling to support certain Pepsi products and at times produce their own private label products that are in direct competition with Pepsi products.
With the re-entry of Coca-Cola in the Indian market, Pepsi-Cola had to go in for more aggressive marketing to sustain its market share. The chronology of the initial phase of the Cola wars in India was:
y 1977: Parle launched Thums-up and pure drinks launched Coca-Cola. y 1998: In September, final approval for the Pepsi Foods Ltd. Project granted by the Cabinet Committee on economic affairs of the Rajeev Gandhi Govt. y 1990: In March, Pepsi-Cola and 7-up launched markets in north India.
y 1990: In May, The government cleared the Pepsi-Cola project again but with a change in brand name to Lehar Pepsi, simultaneously it rejects the Coca-Cola application Citra from the Parle, stable hited the market. y 1991: Pepsi-Cola extended its soft drinks business and reached at national scale. PepsiCola launched its product in Delhi and Bombay. y 1992: In January, Brito foods application is cleared by the FIPB. Pepsi-Cola and Parle start initial negotiation for a strategic alliance but took break off after a while. y 1993: Pepsi-Cola launched Slice and Teem captured about 25-30% of the soft drink market in about 2 years. y 1994: Pepsi bought Dukes & Sones. y 1995: Pepsi-Cola lunched cans, having capacity of 330ml in various flavors. y 1996: Pepsi-Cola domestic and international operations combined into a PepsiCola Company. International and domestic operations combined into one business unit called Frito-lay Company. y 1997: Pepsi-Cola brought Mirinda Orange opposite to Fanta. y 1998: Pepsi-Cola launched Mirinda Lemon opposite to Limca. y 1999: Pepsi-Cola launched Diet Pepsi in can and 1.5 Lit. PET bottle for health conscious people. y 2001: Pepsi-Cola launched Slice in Tetra Pack. y 2003: Pepsi-Cola launched Pepsi Blue to get the favour of world cup season. y 2005: Pepsi-Cola launched Mirinda in Straw Berry flavour to get the favour of movie Batman. y 2005: Pepsi-Cola launched 7-up as 7-up ice.
PEPSI-COLA PHRASES
The Pepsi-Cola marketing phrase has also changed many times 1909-1939: 1939-1950: 1950-1963: 1953-1961: 1961-1963: 1963-1967: 1967-1969: 1969-1973: 1973-1975: 1975-1978: 1978-1981: 1981-1982: 1983-1983: Delicious and Healthful Twice As Much For A Nickel Too The Light Refreshment Be Sociable Now It's Pepsi For Those Who Think Young Come Alive! You're In The Pepsi Generation Taste That Beats The Others Cold You've Got A Lot To Live, Pepsi's Got A Lot To Give Join The Pepsi People Feelin' Free Have A Pepsi Day Catch That Pepsi Spirit Pepsi's Got Your Taste For Life! Pepsi Now!
Pepsi, The Choice Of A New Generation 1984-1990: Pepsi nothing official about it 1990- 1994: Yeh dil mange more (Pepsi India) 1995- 2004 My Pepsi my world 2004- now
tetra pack priced at Rs 10, 15 and 10 respectively. They would also be thinking about family packs of a litre and above, If the response is good. The vice-president said that the product has been prepared by using the technique of hot fill process as it helps in preserving the lemon juice for a longer duration. Asked about the USP of the product in competition with other brands in the market, Alpana said that Pepsico is the first company to launch a drink in the category. As of now, it is the leader and another USP is the quality and hygiene which is far better in comparison to the nimbu pani available on the road side The advertisements of the drink will soon be aired. The company has not roped in any celebrity to market the product as it feels that the drink is for the common man and he is the best brand ambassador. As a way of promotion, a special vehicle Nimbooz highway gaddi has been created that will visit four major highways connecting Delhi to Jaipur, Dehradun and Agra.
y SLICE MANGO
y y DISPOSABLE CANS
y ET JARS
FLAVOUR PACKS:
COLA (Soft drink):
y MIRANDA ORANGE
MOUNTAIN DEW
y 7UP
MINERAL WATER:--AQUAFINA
They have diversified into education by opening their first school in Gurgaon under the management of Delhi Public School Society. Companies are medium sized, professionally managed, unlisted and closely held between Indian Promoters and foreign collaborators. The group added another feather to its cap when the prestigious PepsiCo International Bottler of the Year award was presented to Mr. R. K. Jaipuria for the year 1998 at a glittering award ceremony at PepsiCos centennial year celebrations at Hawaii, USA. The award was
presented by Mr. Donald M. Kendall, founder of PepsiCo Inc. in the presence of Mr. George Bush, the 41st President of USA, Mr. Roger A. Enrico, Chairman of the Board & C.E.O., PepsiCo Inc. and Mr. Craig Weatherup, President of Pepsi Cola Company.
RESEARCH METHODOLOGY:
Exploratory research: The Exploratory research design is appropriate for any problems in which a very little knowledge is available. An Exploratory study is in the nature of a preliminary phase and is absolutely essential in order to obtain a proper definition of problem in hand. So it is helpful in breaking broad and vague problems into smaller, more precise sub problem statements, hopefully, in the form of specific hypothesis.
In this study the exploratory research has been used to frame structure questionnaires, individuals with knowledge and ideas have been interviewed to get the idea to frame structure questionnaire. A part from books and journals has been used to gather information about the insurance and the insurance industry.
DATA COLLECTION: In this study internal and external source for data collection had been used. In the internal and external sources of data collection these two types of data comes into pictures. Primary data and Secondary data.
Primary data: All the primary data for the purpose of the study were obtained by interviewing the consumers with the help of a questionnaire. Questionnaires were framed on the basis of product
& its competition. The questions were designed in such a way as to elicit maximum information and data.
Secondary data: Secondary data has been collected by through books & websites.
Total number people who consumes the Pepsi slim can products in the Chennai city.
SAMPLE SIZE: The sample size for this study was 100 customers and consumers, who are retailers, college students and working people.
SAMPLING SCHEME: The sampling technique adopted was simple random sampling. As the universe is mass and cannot survey the whole and due to lack of time. Among the total population researcher conveniently selected 50 customer & consumers has been derived from the sample studied and the estimates are those based on a part and not whole. Hence there is a risk of the sampling giving rise to certain errors as sampling errors and also the opinion of the respondents may not be the opinion of the population.
It refers to that sampling technique in which each and every unit of the population has an equal opportunity of being selected in the sample. In simple random sampling which items get selected in the sample is just a matter of chance personal bias of the investigator does not influence the selection.
RESEARCH TOOL: In this study the questionnaire was used as a research tool.
QUESTIONNAIRE: The term questionnaire refers to a self-administered process whereby the respondents himself/herself reads the questions and records his/her answers without assistance of an interviewer. The questionnaire has been framed by using the following five steps: Specifying data requirements under the following categories:
1. Open-ended questions 2. Close ended questions 3. Rating and ranking question 1. Multiple choice question 2. 3. DATA ANALYSIS: 4. This study has collected datas based on the questionnaire and separate tables had been drawn for needed questions and charts had also drawn for the tables. The chisquare test had been used to interpret the data are needed to drawn conclusion. Suggestions had been drawn with the use of the charts and tables. Separately each table has its own inference provided at the end of each table 5. LIMITATIONS OF STUDY: The study is limited to particular area hence the study cannot be generalized.
Consumer behavior differs according to their taste of preference. Sample size is considered as a constraint factor that restricted the collection of data. Customer responses are low for the questionnaire