A

Project Report

On
“COMPARATIVE STUDY OF RETAILERS
PREFERENCE TOWARDS PEPSICO AND COCA-
COLA”

At
“PEPSICO INDIA(P)LTD.”
Naroda (Ahmadabad)
In
BBA Programme (T.Y. BBA)

Submitted to: Submited by:

Prof : Mr. Sunil Shah Kuldip y joshi

H.N.S.B. College of Roll No. : 20

Management studies Year : 2008-09

Himatnagar. [Link]
 PREFACE

 It gives me intent pleasure to present this report. This research project has
been carried out in the partial fulfillment of the requirement for the
Business Administration degree course of the H.N.S.B. College of
Management Studies of Hamchandracharya North Gujarat University
Patan.

 I am lucky that, I got an opportunity for making the project report on

“PEPSOCO.” I visited the various concerns for two months and I prepare
my project report on the topic “STUDY OF RETAILERS PREFERENCE
TOWARDS PEPSICO AND COCA COLA” and the study is divided into
various chapters to get knowledge. I also considered some published
material on the particular topic as well as about the concern. This helps me
in boosting up my confidence and determination which will help me to
face the situation in coming years. This report is written account of what I
learnt and experienced during my survey. I wish, those going through it
will not only find it readable but also get as useful Information. The main
limitation of my experience was that I did not get the full and correct
Information from the market, as many of the respondents did not answer
to my questionnaire correctly and completely.
  ACKNOWLEDGEMENT

If the brain is the nucleus of though, a teacher is the source of energy to run the operation
of solving cross puzzles of doubts that often poise the minds of the student. Here I wish to extend
my gratitude to all those who helped me at various stages of this study.

First of all I will like to thank Prof. Sunil Shah who gave his precious time and guided me
from beginning to end. I am also thankful to my friends who helped me in finding and organizing
the study material. Their meticulous review and constructive criticism resulted in several
modification and additions. I express my deep sense of thankfulness to colleagues & head of the
company and also mgmt team of company who have given guidance to carry out my research
work and their enthusiastic support through the research work.

I wish to extend my over whelming, whole hearted gratitude towards my parents and to
all those person with whom I was associated and who’s being and guidance enabled me to
complete the research work.
 TABLE OF CONTENTS

Sr. No. Contents Page No.

1 Executive Synopsis 01 

2 Introduction 03

3 Methodology 04 

4 Findings 23 

5 Limitation  24

6 Conclusion  25

7 Appendix 27

8 Bibliography 29
Executive Synopsis

 It gives me opportunities to prepare a project report on Retailer survey in the

subject of marketing management . I feel intent pleasure to present this report.
This research has been conducted for beverage products of The PepsiCo India (p).
Ltd. at Naroda( Ahmadabad). And this studies for the getting practical
knowledge.

In this report research has been conducted by the questions methods. From this method, I
meet so many new dealers. This research has done to the objectives are as follows…

1 To know competing brands.

2 To know reason for preference of competing brand by dealer.
3 To know satisfaction level of retailer on PepsiCo.

4 To know retailer satisfied with the services provided by the PepsiCo.

5 To know retailer satisfied with replacement policy of PepsiCo.

6 to know external environment affect the sales of cola.
1.1: A BRIEF INSIGHT- THE FMCG INDUSTRY IN
INDIA

Introduction
Fast Moving Consumer Goods (FMCG), are products that are sold quickly
at relatively low cost. Though the absolute profit made on FMCG products is
relatively small, they generally sell in large quantities, so the cumulative
profit on such products can be large. Examples of FMCG generally include a
wide range of frequently purchased consumer products such as toiletries,
soap, cosmetics, teeth cleaning products, shaving products and detergents,
as well as other non-durables such as glassware, light bulbs, batteries, paper
products and plastic goods.[1] FMCG may also include pharmaceuticals,
consumer electronics, packaged food products and drinks, although these
are often categorized separately.

FMCG products contrast with durable goods or major appliances such as

kitchen appliances, which are generally replaced less than once a year. In
Britain, "white goods" in FMCG refers to large household electronic items
such as refrigerators. Smaller items such as TV sets and stereo systems are
sometimes termed "brown goods".

FMCG industry, alternatively called as CPG (Consumer packaged goods)

industry primarily deals with the production, distribution and marketing of
consumer packaged goods. The Fast Moving Consumer Goods (FMCG) are
those consumables which are normally consumed by the consumers at a
regular interval. Some of the prime activities of FMCG industry are selling,
marketing, financing, purchasing, etc. The industry also engaged in
operations, supply chain, production and general management.

FMCG industry provides a wide range of consumables and accordingly the

amount of money circulated against FMCG products is also very high. The
competition among FMCG manufacturers is also growing and as a result of
this, investment in FMCG industry is also increasing, specifically in India,
where FMCG industry is regarded as the fourth largest sector with total
market size of US$13.1 billion. FMCG Sector in India is estimated to grow
60% by 2010. FMCG industry is regarded as the largest sector in New
Zealand which accounts for 5% of Gross Domestic Product (GDP).
Some common FMCG product categories include food and dairy products,
glassware, paper products, pharmaceuticals, consumer electronics,
packaged food products, plastic goods, printing and stationery, household
products, photography, drinks etc. and some of the examples of FMCG
products are coffee, tea, dry cells, greeting cards, gifts, detergents, tobacco
and cigarettes, watches, soaps etc.
Some of the merits of FMCG industry, which made this industry as a potential
one are low operational cost, strong distribution networks, presence of
renowned FMCG companies. Population growth is another factor which is
responsible behind the success of this industry

FMCG industry creates a wide range of job opportunities. This industry is a

stable, diverse, challenging and high profile industry providing a wide range
of job categories like sales, supply chain, finance, marketing, operations,
purchasing, human resources, product development, general management.
Some of the well known FMCG companies are Sara Lee, Nestlé, Reckitt
Benckiser, Unilever, Procter & Gamble, Coca-Cola, Carlsberg, Kleenex,
General Mills, PepsiCo and Mars etc
Identifying the segments in FMCG:

Product wise production (2007)

SWOT Analysis: Whole Industry!

Strengths

 Well established distribution networks extending to the rural areas

 Backed by strong brands

 Low cost operations

Weakness

 Low export levels

 Small scale sector reservations limit ability to invest in technology and achieve
economies of scale

 Several “Me-Too” products

Opportunities

 Large domestic market

 Export potential

 Increasing income levels will result in faster revenue growth

Threats

 Imports

 Tax & Regulatory Structures

 Slowdown in Rural Demands

1.2: BEVERAGE INDUSTRY IN INDIA: A BRIEF INSIGHT

The Indian beverage industry faces over supply in segments like coffee and tea.
However, more than half of this is available in unpacked or loose form. Indian hot beverage
market is a tea dominant market. Consumers in different parts of the country have heterogeneous
tastes. Dust tea is popular in southern India, while loose tea in preferred in western India. The
urban-rural split of the tea market was 51:49 in 2000. Coffee is consumed largely in the southern
states. The size of the total packaged coffee market is 19,600 tones or US$ 87 million. The urban
rural split in the coffee market was 61:39 in 2000 as against 59:41 in 1995.

The total soft drink (carbonated beverages and juices) market is estimated at 284 million
crates a year or US$ 1 billion. The market is highly seasonal in nature with consumption varying
from 25 million crates per month during peak season to 15 million during offseason. The market
is predominantly urban with 25 per cent contribution from rural areas. Coca cola and Pepsi
dominate the Indian soft drinks market. Mineral water market in India is a 65 million crates (US$
50 million) industry. On an average, the monthly consumption is estimated at 4.9 million crates,
which increases to 5.2 million during peak season
 BEVERAGES

Alcoholic Non-Alcoholic

Carbonated Non-Carbonated

Cola Non-Cola Non-Cola

Two beverage industry in India

PepsiCo Coca-cola

In India, beverages form an important part of the lives of people. It is an industry, in

which the players constantly innovate, in order to come up with better products to gain more
consumers and satisfy the existing consumers.

FIGURE 1: BEVERAGE INDUSTRY IN INDIA

The beverage industry is vast and there various ways of segmenting it, so as to cater the right
product to the right person. The different ways of segmenting it are as follows:

 Alcoholic, non-alcoholic and sports beverages

 Natural and Synthetic beverages
  In-home consumption and out of home on premises consumption.
 Age wise segmentation i.e. beverages for kids, for adults and for senior citizens
 Segmentation based on the amount of consumption i.e. high levels of consumption and
low levels of consumption.
If the behavioral patterns of consumers in India are closely noticed, it could be observed that
consumers perceive beverages in two different ways i.e. beverages are a luxury and that
beverages have to be consumed occasionally. These two perceptions are the biggest challenges
faced by the beverage industry. In order to leverage the beverage industry, it is important to
address this issue so as to encourage regular consumption as well as and to make the industry
more affordable.

Four strong strategic elements to increase consumption of the products of the beverage industry
in India are:

 The quality and the consistency of beverages needs to be enhanced so that consumers are
satisfied and they enjoy consuming beverages.
 The credibility and trust needs to be built so that there is a very strong and safe feeling
that the consumers have while consuming the beverages.
 Consumer education is a must to bring out benefits of beverage consumption whether in
terms of health, taste, relaxation, stimulation, refreshment, well-being or prestige relevant
to the category.
 Communication should be relevant and trendy so that consumers are able to find an
appeal to go out, purchase and consume.

The beverage market has still to achieve greater penetration and also a wider spread of
distribution. It is important to look at the entire beverage market, as a big opportunity, for brand
and sales growth in turn to add up to the overall growth of the food and beverage industry in the
economy.
Coca Cola

Coca-Cola started its India operations in 1993. The Coca-Cola system in India
comprises 27 wholly company-owned bottling operations and another 17
franchisee-owned bottling operations. A network of 29 contract-packers also
manufacture a range of products for the company. Leading Indian brands
Thums Up, Limca, Maaza, Citra and Gold Spot exist in the Company's
international family of brands along with Coca-Cola, Diet Coke, Kinley, Sprite
and Fanta, plus the Schweppes product range. During the past decade, the
Coca-Cola system has invested more than US$ 1 billion in India. In 2003,
Coca-Cola India pledged to invest a further US$ 100 million in its operations.

PepsiCo

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

of about US$ 27 billion. PepsiCo brands are available in nearly 200 markets
across the world. The company has an extremely positive outlook for India.
"Outside North America two of our largest and fastest growing businesses
are in India and China, which include more than a third of the world's
population" (Pepsico's annual report). PepsiCo entered India in 1989 and is
concentrating on three focus areas - soft drink concentrate, snack foods and
vegetable and food processing. PepsiCo's success is the result of superior
products, high standards of performance and distinctive competitive
strategies.
PEPSICO PROFILE

PepsiCo, Inc.
I INTRODUCTION

PepsiCo, Inc., major producer of carbonated soft drinks, other beverages, and snack

foods. Its beverage division, Pepsi-Cola Company, bottles and markets several popular brands of
soft drinks in the United States and throughout the world. PepsiCo also owns Frito-Lay
Company, the leading snack-food maker in the United States. PepsiCo is based in Purchase, New
York.

PepsiCo’s soft drink products include Pepsi, Diet Pepsi, and Mountain Dew. Other

beverages include Lipton Brisk and Lipton’s Brew iced teas, All Sport athletic drink, and
Aquafina bottled water. Frito-Lay products include Lay’s and Ruffles Potato Chips, Fritos and
Doritos Corn Chips, Chee-tos Cheese Snacks, Tostitos Tortilla Chips, Rold Gold Pretzels, and
Grandma’s Cookies.

II EARLY HISTORY

PepsiCo traces its origins to 1898 when Caleb Bradham, a pharmacist in New Bern,

North Carolina, created a curative drink for dyspepsia called Pepsi-Cola. Pepsi-Cola, later
referred to simply as Pepsi, was a mixture of carbonated water, cane-sugar syrup, and an extract
from tropical kola nuts. To sell his product, Bradham formed the Pepsi-Cola Company in 1903.
In addition to selling the drink at drugstore counters, Bradham bottled Pepsi for sale on store
shelves. At this time, bottling was a new innovation in food packaging.

However, due to major increases in the price of sugar, Bradham began to lose money on

Pepsi, and in 1923 he filed for bankruptcy. The Craven Holding Company of Craven County,
North Carolina, purchased the company’s assets. In 1931 Charles G. Guth of the Loft Candy
Company in New York City purchased Pepsi-Cola from the holding company. Guth had
difficulty getting the business going again, but he increased sales by selling larger bottles at an
unchanged price. By 1933 Pepsi-Cola was sold by 313 franchised U.S. dealers; bottled in the
United States, Cuba, and England; and sold in 83 countries.

PepsiCo’s snack-food business dates from 1932 when ice-cream seller Elmer Doolin of

San Antonio, Texas, developed a business idea after eating a package of Mexican-made fried
corn chips. He purchased a recipe for the chips and established the Frito Company in 1932.
Originally, Doolin produced Frito’s corn chips in his mother’s kitchen. He later mechanized
production and moved operations to Dallas, Texas, in 1933. Around the same time, Herman Lay
of Nashville, Tennessee, developed a business distributing potato chips made by an Atlanta
manufacturer. In 1938 Lay bought the manufacturing company, renaming it H. W. Lay &
Company. The company prospered, becoming one of the largest producers and distributors of
snack foods in the southeastern United States. The company made and sold many snack foods,
but its best-seller was its brand of potato chips, known as Lay’s. In 1945 the Frito Company gave
H. W. Lay & Company exclusive Southeast distribution rights for Frito’s corn chips, a market
both companies hoped to expand nationwide. After continuing their close business association
for over 15 years, the two companies merged in 1961 to become Frito-Lay, Inc., with
headquarters in Texas.

III GROWTH

The Pepsi-Cola Company, meanwhile, had changed hands several times and grown

greatly since 1933. The Loft Candy Company merged with the company in 1941, keeping the
Pepsi-Cola name. About this time, Pepsi became the second-best selling soft drink in America
behind its chief market rival, Coca-Cola (popularly known as Coke). In 1948 the Pepsi-Cola
Company began canning drinks in addition to selling them in bottles. Alfred Steele, formerly an
executive with the Coca-Cola Company, became president of the Pepsi-Cola Company in 1950.
Former amateur boxer Donald Kendall took over as company president and chief executive
officer (CEO) in 1963 and began marketing Pepsi to young people in an advertising campaign
called “The Pepsi Generation.” The company acquired another popular soft drink, Mountain
Dew, in 1964. In 1965 the Pepsi-Cola Company merged with Frito-Lay, Inc., to become
PepsiCo, Inc., based in New York City. As president and CEO of the newly merged company,
Kendall later moved the corporate headquarters to its current home in Purchase, New York.

In 1972 PepsiCo struck a deal with the Union of Soviet Socialist Republics (USSR),

allowing the company to distribute Stolichnaya vodka in the United States and to build soft-drink
bottling facilities in the USSR. Pepsi thus became one of the first American products to be made
and sold in the Soviet Union. In the late 1970s the company began to purchase fast-food chains.
It acquired Pizza Hut in 1977, Taco Bell in 1978, and Kentucky Fried Chicken (later named
KFC) in 1986.

IV SNACK FOOD MARKET DOMINANCE

Many of PepsiCo’s other products continued to dominate their markets in the 1990s.

Sales of Frito-Lay products accounted for about 40 percent of PepsiCo’s total profits. By the
mid-1990s Frito-Lay products made up more than half of the U.S. market for snack chips, and
the company owned eight of the top ten chip brands. In 1995 U.S. consumers bought the
company’s original potato chip brand, Lay’s, at a rate of 4.5 kg (10 lb) a second. The company’s
leading product, Dorito’s tortilla chips, was the best-selling salty snack (packaged) food in
America in the mid-1990s. Salty snack foods include chips, pretzels, and nuts, as opposed to
nonsalty snack foods such as cookies and cakes. In 1994 Frito-Lay began producing several
baked and low-fat versions of some of their snack foods—such as Baked Lays potato chips and
Baked Tostitos tortilla chips—which soon dominated the company’s sales growth.

V RECENT DEVELOPMENTS

By the mid-1990s PepsiCo’s restaurant business consisted of 28,000 outlets worldwide,

more than were owned by any other company. The company also supplied its own restaurants
through a separate division, PepsiCo Food Systems (PFS). In 1997 PepsiCo sold PFS. Also that
year, PepsiCo spun off its restaurant chains to form a new company. The move enabled PepsiCo
to focus on its beverages and snack foods. In 2001 PepsiCo acquired The Quaker Oats Company,
a food and beverage company.

COCA-COLA PROFILE
The Coca-Cola Company
I INTRODUCTION
The Coca-Cola Company, beverage company and the world leader in soft drink sales.
Coca-Cola produces and distributes several brands in the United States and internationally. The
company also produces and markets many fruit juices and other nonsoda beverages. The Coca-
Cola Company is based in Atlanta, Georgia.

Coca-Cola’s soft drinks include its flagship product Coca-Cola (popularly known as

Coke), Diet Coke, Tab, Sprite, Fanta, Fresca, Mello Yello, and Barq’s root beer. The company’s
nonsoda beverages include Minute Maid fruit juices, PowerAde sports drinks, and Nestea iced
tea drinks.

II EARLY HISTORY

Coca-Cola traces its origins to 1886 when John Pemberton, an Atlanta pharmacist who

developed patent medicines, created a drink from carbonated water, cane sugar syrup, caffeine,
and extracts of kola nuts and coca leaves. Pemberton found the drink both medicinal and
refreshing, and he sought to market it. His bookkeeper, Frank M. Robinson, suggested the name
Coca-Cola—after the two extracts in the ingredients—and also wrote the product’s name in
distinctive script. Coca-Cola has used that same logo ever since. Pemberton and Robinson also
coined the drink’s first slogan, “Delicious and Refreshing.”

Pemberton, however, was ill, and he would not live to see his product’s success. In their
first year selling Coke, he and his partners made only $50. Pemberton sold two-thirds of his
business in 1888 to cover his losses and keep the business afloat. He died later that year and Asa
Candler, an Atlanta wholesale druggist, purchased total interest in Coca-Cola for $2300 in 1891.
The next year Candler and his brother, John; Frank Robinson; and two associates formed the
Coca-Cola Co.

III EARLY GROWTH

In 1893 Candler registered Coca-Cola as a patented trademark. He also responded to

growing concerns over the dangers of cocaine by reducing the amount of coca in the drink to a
trace. However, he kept some coca extract in Coca-Cola so the name would accurately describe
the drink. Candler only had a patent on the name, and not the drink syrup—that is, the drink’s
base, containing all the ingredients minus the carbonated water. He figured that keeping the coca
in his formula would legally allow the company to distinguish its drink from imitations. Other
companies also produced soda drinks made with kola nut extracts. In particular, the Pepsi-Cola
Company (see PepsiCo, Inc.) and its cola of the same name (or Pepsi, for short) would become
Coca-Cola’s major competitor over the next few decades.
 Candler also spent more than $11,000 on his first massive advertising campaign in 1892.
The Coca-Cola logo appeared across the country, painted as a mural on walls; displayed on
posters and soda fountains where the drink was served; and imprinted on widely marketed,
common household items, such as calendars and drinking glasses. In addition, Candler was the
first person ever to use coupons to gain customers for a product. He distributed flyers offering
free soda fountain glasses of Coca-Cola to people visiting his drugstore.

In 1894 the Coca-Cola company opened its first Coke syrup production plant outside of
Atlanta, in Dallas, Texas. That same year a candy store owner in Vicksburg, Mississippi,
installed bottling machines and produced the first bottled Coke. It had previously been sold only
at soda fountains. By 1895 the drink was sold in all U.S. states and territories.

In 1899 lawyers Benjamin Thomas and Joseph Whitehead of Chattanooga, Tennessee,

bought the exclusive rights to distribute Coke syrup to bottlers throughout most of the country
for only one dollar. At the time, Candler saw little profit in bottling, and was more than willing
to give up that part of the business. Their contract maintained that Candler could withdraw
bottling rights, however, if the quality of bottled Coke was not consistently high. Because of
differences in availability of time and money, Thomas and Whitehead split their partnership soon
after it started. In 1890 Thomas took bottling rights for the Northeast and the West Coast.
Whitehead received financial backing from Chattanooga businessman John Lupton, and the two
formed the Dixie Coca-Cola Bottling Plant in Atlanta. They had bottling rights for the Southeast,
and they soon gained rights for the Southwest and Midwest as well. Their enterprise established
an extensive bottling franchise system that still exists.

In 1915 the Root Glass Company created a contour glass bottle for Coke, its design based
on the curvature of a coca bean. This bottle design became a Coke trademark worldwide. The
same year, Candler retired from the company, passing it on to his children and moving into
politics. He was elected mayor of Atlanta in 1916.

In 1919 the Candler family sold Coca-Cola to businessman Ernest Woodruff of

Columbus, Georgia, for $25 million. Woodruff’s son, Robert, was elected company president in
1923. Robert Woodruff was a skilled marketer, and he put more of the company’s resources into
market research than into manufacturing Coke. Two new Coke slogans were developed under
Woodruff: “The Pause that Refreshes” (1929) and “It’s the Real Thing” (1941).

IV WARTIME DEVELOPMENTS
 During World War II (1939-1945), Woodruff also boosted Coke’s popular image in the
United States by pledging that his company would provide Coke to every U.S. soldier. The
company did not limit itself, however, to only doing business that would increase its success in
America. In the period leading up to the war, between 1930 and 1936, it had set up a division of
the company in Germany, and it continued that venture during the war. It recreated its image as a
German company and allowed the Germans to produce all but two, secret, Coca-Cola ingredients
in their own factories. In 1941 the German company’s president, Max Keith, developed Fanta
orange soda using orange flavoring and all the German-made Coke ingredients. The Coca-Cola
Company’s wartime efforts helped it expand its global market, often with the economic support
of the U.S. government. By the end of the war in 1945, it had established 64 overseas bottling
plants. That same year the company registered a patent on Coca-Cola’s popular nickname, Coke.

V POSTWAR GROWTH

In 1955 Robert Woodruff retired as the Coca-Cola Company’s president. Candler and Woodruff are remembered as the
two most importantfigures in the company’s early growth, both for their contributions to the
company and their considerable fortunes donated to the city of Atlanta. After Woodruff’s
departure, the company began to diversify by producing new products, acquiring new businesses,
and entering new international markets.

In 1960 the Coca-Cola Company purchased the Minute Maid Corp., producer of fruit

juices, and began offering Coke in cans. Between 1960 and 1963 it also launched four new soft
drinks in the United States: Fanta, an orange soda; Sprite, a lemon-lime soda; Tab, a diet cola;
and Fresca, a diet grapefruit-flavored soda. In 1964 the company acquired the Duncan Foods
Corp. In 1967 it created the Coca-Cola Foods Division (later Coca-Cola Foods) by merging its
Duncan and Minute Maid operations.

In the late 1960s, Coca-Cola faced difficulties in some of its foreign markets. When the

company built a bottling plant in Israel at the outset of the Arab-Israeli War, the governments of
all Arab League nations banned the production and sale of Coke. A year later the company
withdrew from its markets in India when that country’s government requested that Coca-Cola
reduce its equity in joint ventures to 40 percent. The company refused to relinquish so much
control over those operations.

In 1977 Coca-Cola began packaging Coke and other drinks in two-liter plastic bottles.

The popularity of these large bottles grew over time, and their sales earned the company new
profits, primarily in small specialty and convenience stores. In 1982 the company introduced
Diet Coke, which soon became the best-selling diet soft drink in the world.

Also in 1982 Coca-Cola purchased the motion-picture company Columbia Pictures Industries,

Inc., also known as Tri-Star Pictures, for almost $700 million. Two years later, the company sold
off its Columbia holdings and other media aquisitions to Sony Corporation for over $1.5 billion.
 By 1984 Pepsi-Cola had gained on Coke’s previous domination of the U.S. market to the
point that the two had almost equal sales. In an attempt to regain market dominance, the
company attempted the first-ever revision of the original Coke recipe. The American public
largely rejected New Coke, and so the company quickly returned to also producing the old recipe
under the name Coca-Cola Classic.

VI RECENT DEVELOPMENTS

In 1986 The Coca-Cola Company consolidated all of its nonfranchised U.S. bottling

operations as Coca-Cola Enterprises, Inc. The new company began acquiring independent
bottling companies, a venture that grew into the world’s largest bottler of soft drinks by 1988.
While Coca-Cola Enterprises distributes over half of all Coca-Cola products in the United States,
small franchise businesses continue to bottle, can, and distribute the company’s drinks
worldwide.

In 1987 the Coca-Cola Company was listed in the prestigious Dow Jones Industrial

Averages (see Dow Jones Averages) index of stock market performance (for the second time, it
had also been listed briefly in the 1930s). Its stock is traded on the New York Stock Exchange.
Coca-Cola and PepsiCo products occupied nine of the top ten spots in the U.S. soft drink market
in the mid-1990s. Worldwide, Coca-Cola ranked first in soft drink sales, and the company earned
almost 80 percent of its profits from international sales.
RESEARCH METHODOLOGY
This chapter describes the methodology of the study. This project is based on information
collected from primary sources. After the detailed study, an attempt has been made to present
comprehensive analysis of consumption of PepsiCo and Coca cola consumed by the people. The
data had been used to cover various aspects like consumption, retailer’s preference and retailer’s
satisfaction regarding PepsiCo and Coca cola products. In collecting requisite data and
information regarding the topic selected, I went to the retailers of
Ider,Vadali,Khedbhrma,Prantij,Gandhinagar,Nadiad Bhruch,and collected the data.

Survey design:

The study is a cross sectional study because the data were collected at a single point of time. For
the purpose of present study a related sample of population was selected on the basis of
convenience.

Sampling Area:-

Ihave chosen Gujarat state. I have choose

Ider,vadali,Khedbrahma,Prantij,Gandhinagar,NAdiad, Bharuch

Sample Size and Design:

A sample of 50 people was taken on the basis of convenience. The actual retailers were
contacted on the basis of random sampling.

Sampling Techniques:-

In my survey, I have use conveyance sampling techniques of

non probability method.

Research Period:
Research work is only carried for 4 weeks.
Research Instrument:
This work is carried out through self-administered questionnaires. The questions included were
opening ended, dichotomous and offered multiple choices.

Data Collection:
The data, which is collected for the purpose of study, is divided into 2 bases:
 Primary Source: The primary data comprises information survey of
“Comparative study of retailer behavior towards PepsiCo and Coca cola
products”. The data has been collected directly from respondent with the help of
structured questionnaires.
 Secondary Source: The secondary data was collected from internet and
references from Library.

Data Analysis:
The data is analyzed on the basis of suitable tables by using mathematical techniques. The technique that
I have used is bar graphs.
LIMITATIONS OF THE STUDY

In attempt to make this project authentic and reliable, every possible aspect of the topic was kept in mind.
Nevertheless, despite of fact constraints were at play during the formulation of this project. The main
limitations are as follows:

 Due to limitation of time only few people were selected for the study. So the sample of retailers
was not enough to generalize the findings of the study.

 The main source of data for the study was primary data with the help of self-administered
questionnaires. Hence, the chances of unbiased information are less.

 People were hesitant to disclose the true facts.

 The chance of biased response can’t be eliminated though all necessary steps were taken to avoid
the same.
SWOT ANALYSIS (Strengths, Weakness, Opportunities, and
Threat)
Strengths Weaknesses
Brand strength Effective step in new markets Results of operations Strong existing distribution channels

Reliant upon line extensions Reliant upon particular carbonated drinks Brand dilution Entrance into
difficult noncore categories Saturation of carbonated soft drink segment

Opportunities Threats
New product introductions Brand is attractive to global partners

Strong competition Potential health issues Free trade

Strengths:

Pepsi has been a complex part of world culture for a very long time. The product's image is
loaded with over-romanticizing, and this is an image many people have taken deeply to heart. The Pepsi
image is displayed on T-shirts, hats, and collectible memorabilia. This extremely recognizable branding is
one of Pepsi's greatest strengths. Additionally, Pepsi’s bottling system is one of their greatest strengths. It
allows them to conduct business on a global scale while at the same time maintain a local approach. The
bottling companies are locally owned and operated by independent business people who are authorized to
sell products of the Pepsi Company. Because Cola does not have outright ownership of its bottling
network, its main source of revenue is the sale of concentrate to its bottlers.

Weaknesses:

Weaknesses for any business need to be both minimized and monitored in order to effectively
achieve productivity and efficiency in their business’s activities, Pepsi is no exception. Although
domestic business as well as many international markets are thriving (volumes in Latin America were up
12%), Pepsi has recently reported some "declines in unit case volumes in Indonesia and Thailand due to
reduced consumer purchasing power." According to an article in Fortune magazine, "In Japan, unit case
sales fell 3% in the second quarter [of 1998]...scary because while Japan generates around 5% of
worldwide volume, it contributes three times as much to profits. Latin America, Southeast Asia, INDIA
and Japan account for about 35% of Pepsi's volume and none of these markets are performing to
expectation. Pepsi on the other side has effects on the teeth which is an issue for health care. It also has
got sugar by which continuous drinking of Pepsi may cause health problems. Being addicted to Pepsi also
is a health problem, because drinking of Pepsi daily has an effect on your body after few years.

Opportunities:

Brand recognition is the significant factor affecting Pepsi's competitive position. Pepsi’s brand
name is known well throughout 94% of the world today. The primary concern over the past few years has
been to get this name brand to be even better known. Packaging changes have also affected sales and
industry positioning, but in general, the public has tended not to be affected by new products. Pepsi's
bottling system also allows the company to take advantage of infinite growth opportunities around the
world. This strategy gives Pepsi the opportunity to service a large geographic, diverse area.

Threats:

Currently, the threat of new viable competitors in the carbonated soft drink industry is not very
substantial. The threat of substitutes, however, is a very real threat. The soft drink industry is very strong,
but consumers are not necessarily married to it. Possible substitutes that continuously put pressure on
both Pepsi and Coke include tea, coffee, juices, milk, and hot chocolate. Even though 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 Coke and Pepsi have already diversified into these markets,
allowing them to have further significant market shares and offset any losses incurred due to fluctuations
in the market. Consumer buying power also represents a key threat in the industry. The rivalry between
Pepsi and Coke has produce a very slow moving industry in which management must continuously
respond to the changing attitudes and demands of their consumers or face losing market share to the
competition. Furthermore, consumers can easily switch to other beverages with little cost or consequence.
Our Mission and Vision
At PepsiCo, we believe being a responsible corporate citizen is not
only the right thing to do, but the right thing to do for our business.

Our Mission

Our mission is to be the world's premier consumer products company focused on

convenient foods and beverages. We seek to produce financial rewards to investors as we
provide opportunities for growth and enrichment to our employees, our business partners and the
communities in which we operate. And in everything we do, we strive for honesty, fairness
and integrity.

Our Vision

"PepsiCo's responsibility is to continually improve all aspects of the world in which we

operate – environment, social, economic – creating a better tomorrow than today."
Our vision is put into action through programs and a focus on environmental stewardship,
activities to benefit society, and a commitment to build shareholder value by making PepsiCo
a truly sustainable company.

Performance with Purpose

We believe our financial success – Performance – must go hand-inhand
with our social and environmental responsibilities – Purpose. We
bring that Purpose to every aspect of our business.

At PepsiCo, we're committed to achieving business and

Financial success while leaving a positive imprint on society –delivering what we call
Performance with Purpose. Performance with Purpose is at the heart of every aspect of our
business. We believe financial achievement can and must go hand-in-hand with social and
environmental performance.

Our approach to superior financial performance is straightforward – drive shareholder

value. By integrating a commitment to social and environmental performance into all of our
businesses, we’re able to manufacture our products more efficiently and economically, attract
even more of the world’s best talent, and sharpen our competitive edge in markets all over the
world. Our Performance with Purpose agenda is comprised of three platforms:

Human Sustainability:
Nourish consumers with a broad range of convenient, great-tasting foods and drinks –
from treats and simple refreshments to positive nutrition; make the healthy choice an easier
choice to make.
Environmental Sustainability:

Conserve our natural resources; operate in a way that minimizes our environmental
footprint with the goal of reaching a net-neutral impact.

Talent Sustainability:

Developing our employees by creating a diverse and inclusive culture and making certain
our company is an attractive destination for the world’s best people. The people behind
PepsiCo's brands are working hard to address these sustainability challenges, while partnering
with key stakeholders to effect real change. While we have taken significant strides on this
journey, there is still more to learn and do. It is our intent to lead the way
 Retailer’s Perception about carbonated soft-drink brands In
Selected Cities of Gujarat
1. Do you keep carbonated soft-drinks in your shop?
Yes________ NO__________ (If yes, then go to question no.2)

2. Which brands of carbonated soft –drink do you keep in your shop?

Pepsi [ ] Coca cola [ ]

Dew [ ] Thums-Up [ ]

Lehar [ ] Fanta [ ]

Mirinda [ ] Limca [ ]

7 up [ ] Maza [ ]

Slice [ ] Sprite [ ]

Others____________________________________
 3. Rank the top- three brand preferred by customers
1.________

2.________

3.________

4. Which factors affect you to keep any brand in your shop?

Sales (turnover) [ ]

Brand Name [ ]

Margin [ ]

Advertisement [ ]

Relationship with Dealer of the brand [ ]

Convenient payment condition [ ]

Sales support from dealers (Schemes, local advertisement, and other aids)

Others___________________ [ ]

5. Are you satisfied with the services provided by the Pepsi?

Yes_______ NO______

If yes, Why______________________________________________________________

If No, why ______________________________________________________________

6. Are you satisfied with the services provided by the Coca Cola?
Yes_______ NO______

If yes, Why______________________________________________________________

If No, why ______________________________________________________________

7. Are you satisfied with replacement policy of Pepsi?

Yes________, why_______________

No_________, why_______________
8. Are you satisfied with replacement policy of Coca Cola?
Yes________, why_______________

No_________, why_______________

9. According to you which company is good at POP(Point of Purchase) promotion?

__________________________________________

Also, mention what is good in their POP

promotion____________________________________________________________

10. Show your level of agreement for the following statements

(Likert Scale: 1-Fully Agree, 2- Somewhat Agree, 3- Indifferent, 4- Somewhat disagree,

5- Fully Disagree) [ ]

1. Local brands of cola cannot affect the sales of National Brand

2. The sales of colas have been negatively affected by the awareness of people about health related
issues(yoga, meditation and advices from religious Gurus)
3. Youngsters prefer cola more, than any other age group
4. Colas are used by the people for Hangout with friends an relatives
5. It is difficult to sales cola at retail shop or parlour, than in restaurants and hotels
6. People buy local brands of cola because they are available at lower price
7. Health drinks will create tough competition for cola companies in future

11. Rank the top three brands as per your choice in Carbonated softdrink Industry. Also give the
reasons for same.
1. _____________, Reason_____________

2 _____________, Reason_____________

3. _____________, Reason _____________

12. What else do you suggest for Pepsi for increase in sales?
______________________________________________________________________________
______________________________________________________

13. What else do you suggest for Coca cola for increase in sales?
______________________________________________________________________________
______________________________________________________

14. Which Bottle size mostly consumer purchase?

(1) 200ml [ ]
 (2) 33oml [ ]

(3) 500ml [ ]

(4) Other [ ]

15. Name:___________________________________________
16. Address:-_________________________________________________________
_________________________________________________________

_________________________________________________________

17. Contect No:-___________________