Soft drinks
Introduction
Those carbonated drinks which don’t contain alcohol are commonly known as soft
drinks. Carbonated soft drinks are given different names in different countries.
For example
Country Names given to the soft drinks
soda, soda pop, pop, or tonic
United States of America
Canada soda or pop
History of soft drinks:
Soft drinks history can be traced back to mineral waters found in springs. The earliest soft
drinks are considered to be sherbets which were developed by Arabic chemists and were
served in medieval near east. They were thought to be cure for different diseases. The
first marketed soft drink in the western world appeared in the 17th century.
Different kinds of soft drinks served through out the world.
In the above picture some common soft drinks found in a super market in U.S.A are
shown.
Different soft drinks are offered in different countries even sometimes the same soft drink
is known by a different name in two different countries.
Some of the most common soft drinks served all over the world are as follows
• Coco-Cola
• Pepsi
• Seven-up
• Fanta
• Mountain Dew
The above mentioned soft drinks are some of the most common drinks served all over the
country they can be found every where maybe under a different name and maybe
different flavors are offered.
PEPSI
Introduction:
Pepsi is a carbonated beverage produced by Pepsi Cola. It was first made in 1890s in
North Carolina. Pepsi has started a number of other products such as diet Pepsi, Pepsi
max, Pepsi twist and Pepsi X (Only served in Brazil and Finland)
In October 2008, it was announced that Pepsi would be redesigning their logo and re-
branding many of their products. Pepsi, Diet Pepsi and Pepsi Max will use all lower-case
fonts for name brands, Mountain Dew will be renamed "Mtn Dew," and Diet Pepsi Max
will be re-branded as Pepsi Max. The brand's blue and red globe trademark will become a
series of "smiles," with the central white band arcing at different angles depending on the
product.
History:
Pepsi was first made by pharmacist Caleb Bradhem in the last decade of 19th century. In
1898 this drink was changed in to Pepsi Cola. It was made of carbonated water, sugar,
vanilla, rare oils and kola nuts. Whether the original recipe included the enzyme pepsin is
disputed.
In 1931, the Pepsi-Cola Company went bankrupt during the Great Depression- in large
part due to financial losses incurred by speculating on wildly fluctuating sugar prices as a
result of World War I. Assets were sold and Roy C. Megargel bought the Pepsi
trademark.[5] Eight years later, the company went bankrupt again. Pepsi's assets were then
purchased by Charles Guth; the President of Loft Inc. Loft was a candy manufacturer
with retail stores that contained soda fountains. He sought to replace Coca-Cola at his
stores' fountains after Coke refused to give him a discount on syrup. Guth then had Loft's
chemists reformulate the Pepsi-Cola syrup formula.
Rise in Popularity:
During the great depression Pepsi gained popularity especially after the introduction of
12 ounce bottle. It was for 10 cents but later the price was reduced to 5 cents as a result
sales increased and the profits doubled. One of the main reasons for the increase in the
sales of Pepsi was that Coco-Cola which is the largest competitor of Pepsi was selling 6
ounce bottles of coke at the same price. Thus people started taking Pepsi more because
they were offering more quantity at the same price. This fact started a great rivalry
between Pepsi Cola and Coco Cola which exists to this day.
Marketing strategy of Pepsi in different countries of the world:
Pepsi has become the largest selling soft drink in the world it is liked by people of all
ages belonging to different fields of life belonging to different casts’ religions.
A recent survey shows about 90% of the world population when asked which soft drinks
do they prefer replied Pepsi. When asked for the reason for this liking they replied not
only does Pepsi gives them higher quality but also gives a large variety of other flavors
and new drinks.
Slogans
One of the main reasons for the popularity of Pepsi is the use of slogans which they use
to attract the customers. Different slogans have been used to attract different people of
different ages. They use different slogans in different countries around the world
Following are some of the slogans used by Pepsi over the years.
• 1939: "Twice as Much for a Nickel"
• 1950: "More Bounce to the Ounce"
• 1950: "Any Weather is Pepsi Weather"
• 1957: "The Light Refreshment"
• 1958: "Be Sociable, Have a Pepsi"
• 1961: "Now It's Pepsi for Those Who Think Young"
• 1963: "Come Alive, You're in the Pepsi Generation".
• 1967: "(Taste that beats the others cold) Pepsi Pours It On".
• 1969: "You've Got a Lot to Live, and Pepsi's Got a Lot to Give"
• 1975: "Have a Pepsi Day"
• 1977: "Join the Pepsi People (Feeling Free)"
• 1980: "Catch That Pepsi Spirit" David Lucas composer
• 1981: "Pepsi's got your taste for life"
• 1983: "Pepsi Now! Take the Challenge!"
• 1984: "Pepsi. The Choice of a New Generation" (Commercial with Michael
Jackson, featuring Pepsi version of Billie Jean)
• 1986: "We've Got The Taste" (Commercial with Tina Turner)
• 1990: "You got the right one Baby UH HUH" ( sung by Ray Charles for Diet
Pepsi )
• 1991: "Gotta Have It"/"Chill Out"
• 1992: "Be Younger, Have Fun, Drink Pepsi"
• 1993: "Right Now"Van Halen Song for the Crystal Pepsi Ad
• 1995: "Nothing Else is a Pepsi"
• 1994: "Double Dutch Bus" Pepsi song sung by Brad Bentz.
• 1996: "Pepsi: There’s nothing official about it" (During the Wills World
Cup(Cricket) held in India/Pakistan/Sri Lanka)
• 1997: "GeneratioNext"." With the Spice Girls"
• 1998: "Yeh Dil Mange More"(In Hindi/Urdu meaning "My heart wants
more")(India/Pakistan)
• 1999: "Ask for More"/"The Joy of Pepsi-Cola" (Commercial with Britney
Spears/Commercial with Mary J. Blige)
• 2000: "Aazadi dil ki" (In Hindi meaning "Freedom of the Heart")(India)
• 2003: "It's the Cola"/"Dare for More" (100th Anniversary Commercial)
• 2003: "Yeh Pyas Hai Badi"(In Hindi meaning "This thirst is too much")(India)
• 2005: "Wild Thing"/"Ask For More" (With Jennifer Lopez & Beyoncé Knowles)
• 2006: "Why You Doggin' Me"/"Taste the one that's forever young" Commercial
featuring Mary J. Blige
• 2007: "More Happy"/"Taste the once that's forever young" (Michael Alexander)
• 2008: "Yeh Hai Youngistaan Meri Jaan" (India)
• 2008: "Pepsi Stuff" Super Bowl Commercial (Justin Timberlake)
• 2008: "Pepsi is #1" TV commercial (Luke Rosin)
• 2008: "Pepsify karo gai!" Commercial (in Urdu meaning "Wanna Pepsify!")
(Pakistan) (Featuring. Adnan Sami and Annie (Pakistani singer).
Advertisement through stars
Over the years many famous celebrities have acted as spoke persons for Pepsi this has
increased the popularity of over the years this is one of the main features marketing
strategy of Pepsi. They know that people usually like to copy celebrities so they have
started using celebrities for the advertisements.
Some of the most famous celebrities that have acted as spoke persons are as follows.
• United States of America
1. Puerto Rican singer Chayanne
2. Joanie Sommers
3. Britney Spears
4. Ray Charles
• Asia
1. Amitabh Bachchan
2. Shahrukh Khan,
3. Kajol
4. Rani Mukherjee
5. Saif Ali Khan
6. Fardeen Khan
7. Akshay Kumar
8. Shahid Kapur
9. Preity Zinta
10. John Abraham
11. Priyanka Chopra
12. Kareena Kapoor
13. As well as the national cricket have acted as spokes persons for Pepsi.
One of the main reasons for employing Indian film stars as spoke persons for Pepsi is that
they are liked and idealized by younger generation around the world thus it has improved
their sale.
Marketing strategy of Pepsi _ Cola in different countries.
Pakistan
In Pakistan Pepsi is the most liked soft drink especially by young generation so the Pepsi
cola company has devised such marketing strategy which attracted them. For this reason
they started monitoring the habits of the generation. What they saw was that the students
were crazy about cricket and usually liked to idealize them so in order to increase their
sales the Pepsi cola company paid high amounts of money to the cricketers to act as their
spokes men.
Some of the most famous cricketers in the modern era have acted as spoke persons also
film stars have been acting as spoke persons.
The Pepsi cola company has after doing research also has introduced different size of
bottles offered at lower prices so that every one can afford them. Also Pepsi Company
has introduced other soft drinks including mountain dew, seven up and marinda. Pepsi
company has introduced other flavors such as Pepsi twist, Pepsi max diet Pepsi.
Pepsi Cola Company has also become official sponsors of Pakistan cricket and has
sponsored a number of series.
Also Pepsi has donated a lot to the earth quake victims and has launched a number of
prize schemes to attract new customers
As a result of this marketing strategy Pepsi has become the largest seller of soft drinks in
Pakistan and is slowly forming a monopoly in drinks market. Although many soft drinks
like Pepsi have been introduced such as Amrit Cola, Quibla Cola offered at lower prices
but none of these drinks have been able replace it.
• India:
Pepsi was liked in India even before the independence when Britishers ruled however it
was not available to every one it was too expensive and only the elite class could afford it
but with the independence the prices gradually decreased and Pepsi became available to
every one. In the earlier years Pepsi formed a monopoly over the selling of soft drinks
even Coca Cola Company was not able to capture the market as much.
Pepsi Company also became the first company to sponsor the first cricket series ever for
India. They began targeting the younger generation at the time by making such slogans
which aroused the feelings of the youngsters and the middle age people.
But one of the biggest drawbacks of the monopoly formation was that the company
became ignorant and was not paying taxes and was banned by the government in 1970s.
PepsiCo gained entry to India in 1988 by creating a joint venture with the Punjab
government-owned Punjab Agro Industrial Corporation (PAIC) and Voltas India Limited.
This joint venture marketed and sold Lehar Pepsi until 1991, when the use of foreign
brands was allowed; PepsiCo bought out its partners and ended the joint venture in 1994.
[5]
Others claim that firstly Pepsi was banned from import in India, in 1970, for having
refused to release the list of its ingredients and in 1993, the ban was lifted, with Pepsi
arriving on the market shortly afterwards. These controversies are a reminder of "India's
sometimes acrimonious relationship with huge multinational companies." Indeed, some
argue that PepsiCo and The Coca-Cola Company have "been major targets in part
because they are well-known foreign companies that draw plenty of attention." [6]
In 2003, the Centre for Science and Environment (CSE), a non-governmental
organization in New Delhi, said aerated waters produced by soft drinks manufacturers in
India, including multinational giants PepsiCo and The Coca-Cola Company, contained
toxins, including lindane, DDT, malathion and chlorpyrifos — pesticides that can
contribute to cancer, a breakdown of the immune system and cause birth defects. Tested
products included Coke, Pepsi, 7 Up, Mirinda, Fanta, Thums Up, Limca, and Sprite. CSE
found that the Indian-produced Pepsi's soft drink products had 36 times the level of
pesticide residues permitted under European Union regulations; Coca Cola's 30 times.
[7]
CSE said it had tested the same products in the US and found no such residues.
However, this was the European standard for water, not for other drinks. No law bans the
presence of pesticides in drinks in India.
The Coca-Cola Company and PepsiCo angrily denied allegations that their products
manufactured in India contained toxin levels far above the norms permitted in the
developed world. But an Indian parliamentary committee, in 2004, backed up CSE's
findings and a government-appointed committee, is now trying to develop the world's
first pesticides standards for soft drinks. Coke and PepsiCo opposed the move, arguing
that lab tests aren't reliable enough to detect minute traces of pesticides in complex
drinks. On December 7, 2004, India's Supreme Court ruled that both PepsiCo and
competitor The Coca-Cola Company must label all cans and bottles of the respective soft
drinks with a consumer warning after tests showed unacceptable levels of residual
pesticides.[citation needed]
Both companies continue to maintain that their products meet all international safety
standards without yet implementing the Supreme Court ruling. As of 2005, The Coca-
Cola Company and PepsiCo together hold 95% market share of soft-drink sales in India.
[8]
PepsiCo has also been alleged[who?] to practice "water piracy" due to its role in
exploitation of ground water resources resulting in scarcity of drinking water for the
natives of Puthussery panchayat in the Palakkad district in Kerala, India. Local residents
have been pressuring the government to close down the PepsiCo unit in the village.
In 2006, the CSE again found that soda drinks, including both Pepsi and Coca-Cola, had
high levels of pesticides in their drinks. Both PepsiCo and The Coca-Cola Company
maintain that their drinks are safe for consumption and have published newspaper
advertisements that say pesticide levels in their products are less than those in other foods
such as tea, fruit and dairy products.[9] In the Indian state of Kerala, sale and production
of Pepsi-Cola, along with other soft drinks, was banned by the state government in
2006[10], but this was reversed by the Kerala High Court merely a month later.[11] Five
other Indian states have announced partial bans on the drinks in schools, colleges and
hospitals.[12]
India is one of the top five markets in terms of growth of the soft drinks market. The per
capita consumption of soft drinks in the country is estimated to be around 6 bottles per
annum in the year 2003. It is very low compared to the corresponding figures in US
(600+ bottles per annum). But being one of the fastest growing markets and by the sheer
volumes, India is a promising market for soft drinks. The major players in soft drinks
market in India are PepsiCo and Coca-Cola Co. like elsewhere in the world. Coca-Cola
acquired a number of local brands like Limca, Gold Spot and Thums Up when it entered
Indian market second time. Pepsi Co’s soft drink portfolio consists of Miranda and 7Up
along with Pepsi. The market share of each of the company is more or less the same,
though there is a conflict in the estimates quoted by different sources [13]
The major ingredient in a soft drink is water. It constitutes close to 90% of the soft drink
content. Added to this, the drink also contains sweeteners, Carbon dioxide, Citric
Acid/Malic acid, Colors, Preservatives, Anti Oxidants and other emulsifying agents, etc.
• Social implications
The first time when CSE conducted tests on samples of 12 soft drinks, it found out that
the pesticide residue levels in these samples are as high as 30 to 35 times that of the
levels acceptable by EEC norms.
Indian soft drinks market is not under any regulation. Prevention of Food adulteration act
1954 does not include soft drinks. None of the BIS standards that existed before August
2003 had any guidelines or set criteria for the residue levels of pesticides in the soft
drinks. But different international agencies have set standards for the residue levels of
pesticides. The European Economic Community (EEC) sets the maximum admissible
concentration of individual pesticides and related products in drinking water at 0.1 parts
per billion to ensure that the toxicity is not dangerous to human beings. For a few
pesticides like aldrin, dieldin and heptachlor epoxide the admissible limit is even more
stringent, i.e., 0.03 parts per billion.[15]
The samples tested were found to contain four pesticides more often than others –
Lindane, DDT and its metabolites, Malathion and Chlorpyrifos. Each of these can have
detrimental effects on the general well-being of human beings. Lindane accumulates in
the fat tissues and can cause damage to liver, kidney and is suspected to be carcinogenic
in nature. DDT and its metabolites are found in almost 80% of the samples tested. DDT
and its metabolites have negative impact on the potency levels of human beings and can
increase the incidence risk of breast cancer among the female population. Chlorpyrifos is
suspected to effect the functioning of the brain. It also affects the immunological system
of the body. Malathion is also carcinogenic in nature.
Some of those who sympathize with PepsiCo in this whole pesticide saga say that the per
capita consumption of soft drinks in India is too small for any of these pesticide residues
in the soft drinks to have any appreciable effect if at all on the consumers. Though this
may be true to certain extent, it has been scientifically proven that the excretion of some
of the aforementioned pesticides from the human body is extremely slow even after the
intake ceases. Moreover, all the aforementioned pesticides are proven to be highly
carcinogenic in nature.
The main reason cited for the highly unacceptable levels of pesticide residue levels in the
soft drinks is mainly because of the negligence on the part of the companies to process
the ground water before using it in the manufacturing process. The ground water in
general, is contaminated because of unregulated and indiscriminate use of pesticides in
India.
The public response to CSE’s findings has been very sharp as reflected by steep drop in
sales of the soft drinks immediately following the release of CSE’s findings. [16] Though
there was no hue and cry all over, the general public seems to have taken strong notice of
the fact that all is not well with the soft drinks produced and marketed by the Cola
Companies. The blatant denials by the head honchos did not allay the fears of the general
public.
• Political implications
The government’s response initially was guarded in nature. The government has
conducted its own investigation into the matter and came out with the verdict that though
the samples did contain pesticide residues, the levels were not as high as those stated by
CSE. Lack of any specific guidelines or set criteria in this case has meant that the Cola
Companies have not flouted any legality and could not be wronged for what they were
doing. One positive that came out was that the government started tinkering with the idea
of coming up with standards for acceptable levels of pesticide residues in the soft drinks
and other beverages.
The political ramifications of the issue are there for all to see. The new UPA government
that came into the power in May 2004 could not force the issue and this saw the pesticide
issue taking backburner. Three years after the issue first saw the light, there was not much
progress from the side of Pesticide Residue Sub-Committee of CCFS – the government
supported body. CSE came up with fresh tests and still highly unacceptable levels of
pesticide residues, this time taking the new BIS standards and guidelines for acceptable
limits. Four states ruled by the opposition at the center, NDA, i.e., Gujarat, Madhya
Pradesh, Rajasthan and Chattisgarh banned the sale of Coke and Pepsi in educational and
government institutions. Karnataka and Kerala followed the suit, with the later even
banning production of the soft drinks in the state.
Overall, the government did not play a proactive role in this issue as can be seen from the
fact that three years after the issue first cropped up, the government is yet to come up
with the standards for pesticide residue levels in the soft drinks. The fact that the ministry
of health and CSE do not see eye to eye on the matter did not help the cause. Somehow,
the matter has deviated substantially from the core issue, i.e., carcinogenic pesticide
residue levels in the primary ingredient water. The CCFS is known to have been
expending resources and time on the obesity inducing sugar, which anyway is not the
major constituent of the soft drink composition. Moreover, the expert committee
constituted by the ministry of health faulted the CSE’s methodology of conducting tests
and hence the credibility of its tests.
• Economic implications
Despite of the initial knee-jerk reaction, the general public by and large has not been
paying much attention to the Pepsi pesticides issue. The ban imposed by some of the
states will hit the profitability of the company’s operations. The thing really worth
mentioning is the reluctance of both the Cola Companies in accepting the fact that they
have been following different safety standards at different places. All through the issue,
the chairman of Pepsi India Holding Rajeev Bakshi was adamant that Pepsi’s products in
India are as safe as anywhere else. While it may be true that extremely low levels of per
capita consumption render any fears of toxic effects of pesticides unreasonable, the
reluctance of the Cola Companies in accepting the fact that the ground water used in the
manufacturing process is not sufficiently treated, is an ominous sign to the consumer.
The cost involved with such processing and subsequent testing of the water samples for
residue levels might not be exorbitant in comparison to the amount of damage from not
taking any such initiative might cause in the long run. In the age of triple bottomline, the
overall behavior of Pepsi India in the pesticides issue leaves a lot desired.
• PepsiCo in Burma
From 1991 until 1997, PepsiCo was one of the most notable companies to do business in
Burma. PepsiCo's business partner, Thein Tun, was a noted business partner of the ruling
Burmese military junta which has been alleged to be responsible for some of the worst
human rights violations in the world.
PepsiCo's involvement prompted one of the biggest Burma-related boycotts in history.
The campaign was on a par with those against Texaco and Unocal, running around the
same time, and currently against Total Oil.
PepsiCo formally began their investment in Burma in November 1991 when they opened
a bottling plant in the then-capital Rangoon, despite the call by Aung San Suu Kyi and
the National League for Democracy for companies to avoid doing business in Burma
until it returned to democracy. The campaign against Pepsi was initiated by the Asian-
based Burma Rights Movement for Action. The campaign later gained growing strength
in the West as Burmese human rights groups focused on campaigns against companies in
Burma, including the oil giants Texaco, Unocal, Amoco, and Petro-Canada. [17]
When Petro-Canada left Burma, Canadian and U.S. based Burmese democracy groups
sharpened their focus on PepsiCo. The campaign received a massive boost when, in 1996,
the Free Burma Coalition took the lead in forcing Pepsi out of American universities.
This included the scrapping of a multi-million dollar deal at Harvard
The campaign also spread to Europe, where the UK-based organization, Third World
First, adopted the boycott. In response, in 1996, PepsiCo attempted to step out of the
spotlight by selling its share of its Burmese joint venture to its partner but retaining its
Burmese franchise agreement. Aung San Suu Kyi responded, "As far as we are
concerned, Pepsi [Co] has not divested from Burma" and both human rights and
environmental groups continued the pressure on Pepsi. Eventually, with the Burmese
regime holding violent anti-democracy rallies and pressure from around the world
mounting, PepsiCo announced in January 1997 that it would cut all ties with Burma.
However, to this day, PepsiCo has not admitted that it was morally wrong to invest in
Burma as some other companies have upon leaving the country.
• PepsiCo in Israel
Until 1991 PepsiCo was not sold in Israel, for which it was criticized by many in the
United States who believed it was supporting the Arab boycott of Israel. PepsiCo always
denied this allegation, saying Israel was simply too small to support a franchise. As a
result, the Israeli market was taken over by Pepsi's rival Coca Cola, and to this day Pepsi
has a very small market share in Israel.
Conclusion:
According to above research it is concluded that Pepsi Cola has a 70% share in the soft
drink market no other soft drink has even come close to removing the Pepsi from the top
of the chain.
AMRAT COLA
• Introduction:
Amrat cola is a brand of cola manufactured by Pakistan mineral water bottling plant.
Amrit not only produces cola but also manufactures other flavors such as orange soda and
lemonade.
• History:
Amrat cola began its operations its operations in Pakistan in [Link] cola has been
making progress in leaps and bounds and today Amrat cola is the first national
organization in the beverages industry of Pakistan. It serves million of CSDs lovers.
• Reasons for establishment:
One of the main reasons for the establishment of Amrat Beverages international is to
acquire self sufficiency in beverages industry and to provide the nation with quality
carbonated soft drink.
• ABI today:
ABI today is the twin kingly star in the galaxy in the national organizations and PMW is
also working under the umbrella of ABI.
• Mission statement:
“Mission of ABI is to take ABI to the combination of success and glory unleashing
progressive opportunities making Pakistan proud of its role in both national as well as in
international market”.
• Vision
“The company remains committed to complete on quality. The company has been able to
provide higher quality to soft drink customers.”
“Our franchise network expansion is rapid in progress and yet it is just the beginning we
have to go miles away”
• Franchises:
1. Lahore franchise
2. Multan Franchise
3. Peshawar Franchise
4. Karachi Franchise
• Products of ABI
Other products of ABI include Amrat beverages soft drinks and AB-E-Hayat the mineral
water bottles.
In soft drinks ABI provides three flavors which are as follows
1. Cola flavor
The cola flavor has been introduced as a substitute of international brands
such as Pepsi and Coca Cola it is offered at lower prices than other soft drinks
2. Orange flavor
Orange flavor has been introduced as a substitute of other Orange drinks such
as Marinda and Fanta.
3. lemonade flavor
The lemonade flavor is the most liked flavor of Amrat cola it has been acting
as a substitute of Seven-up according to the recent survey 90% of the people
like lemonade.
• Marketing strategy:
Amrat cola is a new brand and is not so famous among the people so in order to increase
their sales they have employed many famous celebrities and cricket stars to act as their
spoke persons recently Amrat cola has also been sponsoring different sporting events to
increase its popularity.
• Conclusion
Amrat cola is a new local soft drink brand which yet has not been able to spread its
roots in the country but with the passage of time it has risen in popularity and that
time is not far away when Amrat Cola will not only dominate the soft drinks market
in Pakistan but also the international market of soft drinks.
