A PROJECT REPORT ON

COMPARATIVE STUDY BETWEEN PEPSI

& COCA-COLA

SUBMITED BY:RITESH BHARGAVA

(3rd SEM)

IN THE PARTIAL FULFILMENT OF MASTER OF BUSINESS ADMINISTRATION (MARKETING)

NGFCET (PALWAL)

ACKNOWLEDGEMENT

I want to express my heartiest gratitude to my learned HR Manager Alok Gupta, for his inspiring and thought providing guidance given to us through the course of project.

First of all I want to Thanks Mr. Amit Gupta is ADC (Area Development Coordinator) of Varun Beverage Ltd. Who has permitted me to do our “Project Work” in this unit and I

am sincerely indebted to Mr. Ashish Customer Executive for their corporation during the course of work.

We are extremely thankful to the other employees of Varun Beverage Ltd. & all the members of the distributor of Mathura Region, without their support, I can’t do the work properly, they help a lot.

I want to express our sincere gratitude to Ms. PAYAL SHRMA and Mrs.Manpreet Kaur (HOD) for their help and guidance.

DECLARATION

I, RITESH BHARGAVA declares, that project report entitled “COMPARITIVE STUDY B/W PEPSI & COKE THROUGH Varun Beverage Ltd.” submitted in the partial fulfillment of “Master Of Business Administration” from NGFCET (PAWAL). Session: 2009-2011 in the outcome of my work.

Dated: - _______ RITESH BHARGAVAPlace: - Mathura MBA (Marketing)

NGFCET (PAWAL

PREFACE

Education is continues process of learning it covers theoretical as well as behavioral aspect. Every study is incomplete without having well-planned and concrete exposure to its students. So far management student is no exception.

This project report is comprehensive analysis of retailer’ Promotion , satisfaction and consumer survey on marketing mix regarding soft drinks study conducted in two parts retailers & consumers by both companies Pepsi & Coca-Cola.

Questionnaires were filled on the opinion of retailers and consumers and suggestions were based on face to face interaction with consumers and retailers.

This study based on the survey conducted in restaurants, general stores, and pan bhandar, juice center to analyze the market share and consumer preferences for Pepsi as well as Coca- Cola in the Mathura region.

Table of Contents

Introduction of topic

Beverages industry in India

About Varun Beverages Limited

Distribution channel of Varun Beverages Purpose of study

Introduction of Pepsi & Coke

Flavours of pepsi and coke

Scope of study

Methodology

Analysis and Interpretation

Findings

Recommendation and suggestions

Conclusion

Limitaton of the strdy

Bibliography

Appendix

INTRODUCTION

The study on the topic Comparative Study between Pepsi & Coca Cola has been done for the Varun Beverages Ltd. as the part of the summer training project in the various areas of MATHURA city.

The survey had been conducted on this topic and in future also it will be conducted because it is the evergreen topic. The taste, preferences and consumption are never being the same every time. They keep on changing every time. Because this is the time of rapid change, there is nothing static in the world.

Earlier findings shows big share of Pepsi in the market, but now the share of Pepsi is declining. Previously also, the no. of complaints of shopkeepers was small. But now they are escalating.

BEVERAGES INDUSTRY IN INDIA

In 1977, a change in the govt. at the center lead to the exit of COCA COLA which is

preferred to quit rather to dilute its equity to 40% in Compliance with the Foreign Exchange Regulation Act( FERA).

Indian Beverages industry’s size is Rs. 8000 Crores and it is dominated by two players viz PEPSI & Coke only. This high profile industry has lot of potential for growth as per capita consumption in India is 9 bottles a year as compared to 20 bottles in Sri Lanka, 14 in Pakistan, while 12 bottles a person in Nepal.

Pepsi and coca-cola both are American based companies and the biggest player in the world of soft drinks in the whole world. They are the tough competitors of each other.

VISION

Being the best in everything we touch and handle.

MISSION

Continuously excel to achieve and maintain leadership position in the chosen businesses; and delight all stakeholders by making economic value additions in all corporate functions.

Pepsi Bottling Plants in India

1. Goa, Salcete

2. Karnataka, Dharwad

3. Rajasthan, Bhiwadi

4. Rajasthan, Jodhpur

5. Rajasthan, Jaipur

6. Rajasthan, Alwar

7. Uttar Pradesh, Greater Noida

8. Uttar Pradesh, Kosi, Mathura

9. Kathmandu, Nepal

ABOUT VARUN BEVERAGE Ltd.

Varun Beverages Ltd. was the new start, which was born in 1999 among the jaipuria Group. Mr.Ravi Kant Jaipuria lunched this vest biggest plant among all other plant, which comes under jaipuria Group. This is the rising sun of jaipuria Group. Mr. Ravi Kant Jaipuria who is the chairman of this bottling plant has good result.

The main object of this unit is manufacturing production ,selling distribution and

bottling of beverages a created water soft drink etc .Mr. Ravi Kant Jaipuria got best PEPSI bottler award in 1998 for the best bottler of the world. The best PEPSI award is the highest honorable award to any franchisee.

The complete new plant Varun Beverage Ltd. Has structured in plot number 477-479,107 K.M. Stone Agra –Delhi National Highway village-Dautana, Tehsil-Chatta, Distt-Mathura, Utter Pradesh.

This is not only the bottling plant here pet bottles are also manufactured. The present filling capacity of this plant is 1000 bottles per minutes with two lines. The two lines are glass bottles lines. One more line is of pet bottled and its capacity is of 80 bottles per minute.

The annual capacity of this plant is around 88 Lacks create of bottled soft drink. The end product of this plant is bottled carbonates soft drink.

The family manufactures and markets Carbonated and Non-Carbonated Soft Drinks and Mineral Water under PEPSI brand. The various flavours and sub-brands are:

PEPSI, Mirinda Orange, Mirinda Lemon, Mountain Dew, 7UP, Slice Mango, Slice Orange, Evervess Soda and Aquafina. It has the license to supply beverages in the territories of Western U.P., part of M.P., half of Haryana, whole of Rajasthan, Goa, 3 districts of Maharashtra, 13 districts of Karnataka and whole of Nepal.

Varun Beverages is growing to new height annual turnover of the plant is about 100 crores.

DISTRIBUTION CHANNEL OF VARUN BEVRAGES .

PURPOSE OF STUDY:

1 Study the retailer’s preference.

VARUN BEVERAGES MANUFACTURING

PLANT

VARUN BEVERAGES MARKETING

DISTRIBUTORS

SUB- DISTRIBUTORS

RETAILERS

CONSUMERS

AGENCY

STOCKIS

2 To study the customer’s preference.

3 To study the market share of Pepsi and Coca-Cola and other competitive brands.

4 To know the parameters which affects the buying of any soft drinks?

5 To verify the existence of Visi Coolers at allotted places.

6 To verify the paintings, visuals in respected areas.

INTRODUCTION OF PEPSI:

The Wall Street Journal names Indra Nooyi one of 50 women to Watch (In Line to Lead). PEPSICo is mentioned among 26 companies that earned Governance Metrics International’s (GMI) highest governance rating.

Pepsi is one of the most well known brands in the world today, available in over 160 countries. The company has an extremely positive outlook of India. This reflects that India holds a central position in Pepsi’s corporate strategy. India is a key market for Pepsi co. and at the same time company has added value to Indian agriculture and Industry.

Pepsi co. entered India in 1989 and is concentrating in the focus area – SOFT DRINKS, also on snack food and vegetable and food processing. Faced with the existing policy framework at the same time, the company entered in the Indian market through a joint venture with Volta’s and Punjab Agro Industries. With the introduction of Liberalization policies since 1991 Pepsi took complete control of its operation. That government has approved more than US$ 400 million

worth of investment of which over US$ 330 million have already flown in. one of the Pepsi Co. key strategies was to develop a completely local management team. Pepsi has 19 companies owned factories while their Indian bottling partner own 21. The company has setup 8 Greenfield sites in backward regions of different states. Pepsi co. intends to expand its operations and is planning an investment of approximately US$ 150 million in the next two-three years.

PEPSI PRODUCTS IN INDIA:Pepsi, Dew, Mirinda, Mirinda Lemon, Nimbuzz, Slice, Aquafina.

INTRODUTION OF COCA-COLA

The Coca-Cola Company exists to benefit and refresh everyone it touches. Founded in 1886, Company is the world's leading manufacturer, marketer, and distributor of nonalcoholic beverage concentrates and syrups, used to produce nearly 400 beverage brands. Its corporate headquarters are in Atlanta, with local operations in over 200 countries around the world. The Coca-Cola Company is a global company with some of the world's most widely recognized brands. It is the single global competitor of PEPSI CO.

COCO-COLA INDIA: After a 16-years absence, Coca-Cola returned to India in 1993. The Company's presence in India was cemented in November that year in a deal that gave drink Coca-Cola ownership of the nation's top soft- brands and bottling network. Coca-Cola India has made significant investments to build and continually improve its business in India, including new production facilities, wastewater treatment plants, and distribution systems and marketing equipment. During the past decade, the Coca-Cola system has invested more than US$ 1 billion in India

COCA-COLA PRODUCTS IN INDIA

Leading Indian brands in India are:

COCA-COLA THUMS UP SPRITE FANTA LIMCA MINUTE MAID, PULPY ORANGE MAAZA KINLEY GEORGIA 

FLAVOURS OF PEPSI AND COCACOLA COMPARITIVELY

“COLA FLAVORS”

Cola is a most popular flavor in any group of age. This is the most saleable flavor in the world. Both PEPSICO & COCA COLA has its own cola flavor. PEPSICO has a cola flavor named PEPSI and cola flavor of COCACOLA are THUMPS UP & COKE. PEPSI COLA is a cash cow brand for the company in terms of sales revenue. PEPSI has two competitive brands in the cola flavor.

PEPSI:

COCA-COLA:

“LIME & LEMON FLAVORS”

This segment of flavor is very likely in the children and aged person. PEPSICO has three brands in this segment with comparison to the two brands of COCACOLA. The PEPSI’s brands are MOUNTAIN DEW, MIRINDA LEMON, 7UP, NIMBUZZ whether the COCACOLA has its SPRIT, LIMCA, MINUTE MAID in this segment.

MIRINDA LEMON is considered to be lemon in taste, comes under the category of cloudy lemon because of its color which is similar to that of clouds. It has to yield good revenue.

MOUNTAIN DEW is sweet lemon soft drink in India and in a few countries. It is mostly demands by the children.

7UP is lemon-lime soft drink. Sale of 7UP is third largest carbonated soft drink brand in the U.S.

PEPSI:

COCA-COLA:

“ORANGE FLAVORS”

This is another type of flavor in the soft drink industry. The taste is like orange. In this segment PEPSI has a brand named MIRINDA whether COCACOLA has its FANTA in orange. This flavour is mostly preferred by children and women.

PEPSI:

COCA-COLA:

“MANGO FLAVORS”

In this category’s of fla vor is like a Mango. This flavor is now becoming more popular in India. In Mango flavor PEPSI has a well known name SLICE whether COCACOLA has MAZAA in this segment.

PEPSI:

COCA-COLA:

SCOPEOF

STUDY

SCOPE OF THE STUDY

The business mgmt. Course is itself insufficient to solve all the problems arising in the practical file. There is no short-cut way to solve the mgmt. Problem coming out of concern. Thus, this eight weeks summer vocational training in any successfully running origin. Though it’s a part of partial fulfillment of M.B.A. course is must for an M.B.A. student. The aim of this training is to develop the ability of correct decision making. A correct decision at the moment itself is an added advantage for an organization to run smoothly without any problem arising out a regular basis.

One can be active the entire knowledge regarding marketing activities, the main emphasis being on the marketing aspect by undertaking a training in any organization. This also helps in learning how objections are tackled fact fully and correct decision is taken about any problem, which came to an executive. Naturally the way of problem solving, proper decision-making and best knowledge of marketing dully supported by tactical advertising activities gives much importance to the study. But the area of learning is so wide that one can hardly learn whole within a short period of eight weeks.

METHODOLOGY

METHODOLOGY

Methodology, for a study like this is the most important part. The method of study adopted by me is totally is to increase & to gather the more information regarding this project.

The major emphasis in such studies is on the discovery of the ideas & fruitful relevant information. As such the research design appropriate for such studies must be flexible enough to provide opportunity for considering different aspects of a problem under study.

METHODS OF DATA COLLECTION:

A) PRIMARY DATA:

Survey method -- This method was adopted because it helped in securing detail information from a sample of respondents. The information received from the respondents is recorded on a form called the questionnaire. This is only method to measure attitude & motivation directly

B) SECONDARY DATA:

I have also used the secondary data, which included the written document of the

organization & other places.

HEAD OFFICE (VBL)

INTERNET

PAPERS & RECORDS

The data collected from the above mentioned sources helped me in getting information about the brief history of PepsiCo

SAMPLING PLAN:

Target population : Retailer’s of the are of Or Universe

Delhi road Mathura

Sampling Size : 50 Customers.

50Retailers.

Sampling Method : Simple Random Sampling

Area of Survey : Mathura region

ANALYSIS AND INTERPRETATION

A survey with sample size 100 which include 50 customers and 50 retailers, is conducted on randomly basis in different parts of Delhi Road Mathura to take the help in comparative analysis

of PEPSI & COKE.

All the samples which are selected are the retailers / outlets of PEPSI and COKE.

COMPARATIVE SALE IN ‘200ML”

PEPSI56%

COCACOLA44%

COMPARATIVE SALE IN 300ML

PEPSI53%

COCACOLA47%

COMPARATIVE SALESS IN “500ML”

59%

41%

0%

10%

20%

30%

40%

50%

60%

PE

RC

EN

TAG

E IN

M

AR

KE

T

PEPSI COCACOLA

COMPANIES

COMPARATIVE SALES IN “ 2LTR”

0%

10%

20%

30%

40%

50%

60%

70%

PEPSI COCACOLA

64%

36%

SH

AR

E I

N M

AR

KE

T

COMPANIES

COMPARATIVE SALES IN “CAN”

0%

10%

20%

30%

40%

50%

60%

70%

PEPSI COCACOLA

67%

33%

MA

RK

ET

SH

AR

E I

N C

AN

COMPANIES

EXTRA EFFORTS MADE BY RETAILERS TO SELL PEPSI

62%

38%

Yes No

According to the survey conducted I found that the retailers do not make some extra efforts to sell PEPSI. The company should makes such promotion activities and motivate the retailers by any means so that they should make some extra efforts to increase the sales of their brands..

Glow Sign Board:-

In case of the glow sign board which company provides to the retailers for advertising is also more than the coke. The percentage of the glow sign board of Pepsi is 77% while coke has 235 only.

Glow Sign Board

Pepsi 77% Coke 23%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Pepsi

Coke

Volume:-

According to my survey report it can be seen that the demand of Pepsi is more than coke. From the total outlets the total demand of the Pepsi is 66% while the coke is only 34%.

Volume

Pepsi 66% Coke 34%

0%

10%

20%

30%

40%

50%

60%

70%

Pepsi

Coke

Delhi By Pass Road Mathura.:-

D. B. R. which is provided by the company to the retailers is 66% while coke provides only 34% D.B.R. to the retailers.

D.B.R.

0%

10%

20%

30%

40%

50%

60%

70%

Pepsi 66% Coke 34%

Pepsi

Coke

Vertical Board :-

In case of vertical board provided by company to the retailers is 54% which is also more than the coke.

Volume

Pepsi 54% Coke 46%42%

44%

46%

48%

50%

52%

54%

Pepsi

Coke

INFRASTRUCTURE

In case of chair and table the survey report shows that the pepsi Company spend more money than the coke, because the chair and table Provided by the company is only 62% and 57% while the coke provided 38% and 43%. Which is beneficial to the company.

Chair

pepsi68%

coke32%

0%

10%

20%

30%

40%

50%

60%

70%

Pepsi

Coke

Table

pepsi57% coke43%0%

10%

20%

30%

40%

50%

60%

Pepsi

Coke

OTHER FACILITIES

In case of the umbrella the Pepsi company spend more money for advertisement than the coke. coke spend only 31% while the pepsi spend 69%. Umbrella

pepsi 69% coke 31%0%

10%

20%

30%

40%

50%

60%

70%

Pepsi

Coke

Refrigerator :-

In case of refrigerator Pepsi company expenses more than the coke Company, which is beneficial for the retailers, and also the good idea for The advertisement. The expense of Pepsi company is 53% while the expense of coke is 47%.Refrigerator

Pepsi 53%

Coke 47%

42%

44%

46%

48%

50%

52%

54%

Pepsi

Coke

Mineral Water :-

The survey report says that the mineral water of Pepsi (Aquafina) Is a little less demanded than the coke (Kinley). But in comparision of All other mineral water the demand of Aquafina is 62% while the others Are 38%.

Mineral Water

0%

10%

20%

30%

40%

50%

60%

70%

Pepsi 62% Others 38%

Pepsi

Others

PROBLEM FACING BY THE DELAER

According reference kind of problems facing by the dealers are in regularity is 40% , display problem is 30%, refrigeration problem is 30%.

FINDINGS

FINDINGS

After performing a careful survey of retailers I have reached to some conclusions:-

1) 11% Mountain Dew is having monopoly outlets while Nimbooz is 9% monopoly outlets.

2) 70% retailers say that there sale has been increased by more than half.3) Price changes has increased outlet holders margin more than 60%, because all

retailers are selling more one rupee printed on bottle.4) There are only 8% retailers who are selling at printed price.5) In rural areas consumer demand is more but in the case of it is just opposite.6) 30% demand only Mountain Dew, and 40% people demand is Nimbooz

remaining 20% demand any one which is easily available.7) 70% retailer viewed that pet sale of both brand in half liter has increased and

30% says it is constant on their outlets.8) Mostly 50% outlet holders are dissatisfy due to non- providence of scheme &

incentives.

RECOMMENDATION & SUGGESTIONS

RECOMMENDATIONS & SUGGESTIONS

After completing this report I find myself able to recommend Varun Beverages Ltd. to boost up the sales of PEPSI & its other brands.

1) PRODUCT AWARENESS PROGRAMES FOR CONSUMERS & RETAILERS SHOULD INCREASE.

A) For Retailers --- The Company should organize seminars, but there must be compulsion for retailers to attend the seminars.

B) For Consumers ---The Company should organize some more programmers in different localities. Awareness program may help increase the market share of PEPSICO.

2) SUPERVISION ON THE DISTRIBUTION ROOTS IS REQUIREDThe main purpose behind this is that on time to time there is eye check on salesmen’s efficiency & on top of that they are going to meet retailers directly.

3) PROMPT DELIVERY OF PRODUCTS

Prompt delivery of the products to the customers is very much necessary towards enhancing the reputation of company & which is defining helpful in keeping the customers.

4) INCREASE THE MOTIVATION

The company should motivate its sales force to take the achievement higher than the targeted by rewarding them properly.

5) PepsiCo should keep sales engineers in various areas to provide technical support to the outlets related to the cooling system.

6) The schemes & the other information are properly communicated to retailers so that they are better equipped to handle the quarries of customers properly.

7) Another problem is replacement i.e. any bottle has some defect then the salesman should replace it immediately.

8) There should be the time-to-time & proper survey of the markets.

9) On extra sales unto some predetermined margins the sales force should paid extra commissions & bonuses.

CONCLUSION

CONCLUSION

I have studied and analyzed the Comparison of PEPSI & Coca Cola on different aspects of the markets, outlets, distribution & consumers. The survey was conducted in various areas of

Delhi Bypass road Mathura with great enthusiasm. This project report Concludes that PEPSI & it’s other brands are easily available in various parts of Mathura rather than COCA COLA because of that the local distribution channel of the PEPSI is much strong than the COCA COLA and 100% is tough job & the most important thing, which I feel to improve is “ the availability to retailers & consumers”. The retailers & consumers both promotes either PEPSI or any other of it’s brands (eg. Mountain Dew) for could be with regard to order processing, warehousing, inventory management & transportation; besides that shop covering, time of enter & exit from the market by the salesmen, cooling appliances, glow shine board, schemes, incentives, prizes, gifts , discount, proper billing , returning of defective goods, proper supply should be improved.

My job was to make marketing managers aware of all the problems so that a proper course of action be required to be undertaken .

The only competitor of PEPSI is COCA-COLA , & no local brands can beet PEPSI.

LIMITATIONS

LIMITATIONS OF THE STUDY

Responsible managers & personals in the marketing department of Varun Beverages Ltd. provide necessary assistance to me in “Comparative Analysis of PEPSI & Coca Cola”. They discussed different aspects & functions of marketing as practical PepsiCo India Ltd (VBL). Almost all the necessary information was provided to me in the support of this project report.

However there are some problems, which cannot escape from. The limitation faced, felt or expressed by me is as follows –

1 Due to lack of time (i.e., two & half month) it is not possible to reach all respondents.

2 The lack of availability of time on the respondent’s part.

I tried to overcome on these limitations.

3 100 SAMPLE is not enough for research

BIBLIOGRAPHY

MARKETING MANAGEMENT -- KOTLER , PHILIP

INDIAN CASES IN MARKETING -- NEELAMEGHAM , S.

BUSINESS STATISTICS -- SHARMA, J.K.

WEBSITES www.pepsico.com

www.pepsi.com

www.rkjgroup.com

APPENDIX

QUESTIONNAIRE

DEALER:……………………

CONTACT PERSON:…………………….

ADDRESS:…………………………………

Which brand you purchase: 1 PEPSI

3 COCA-COLAMarket share of sale in ``CAN``

1 COLA2 Both

Which volume of pack preferred by customers:

1 200ml2 300ml

Which company has more glow sign board:

1 pepsi2 Both

1 Which company has market share in Delhi Bye Pass Road Mathura:

1 Pepsi 2 Both

Which company provides more chair or table and umbrella?

1 Pepsi2 Both

Average monthly consumption of PEPSI & COCA-COLA:

1 PEPSI ……………2 COCA-COLA …………….

Do you make some extra efforts to sell/promote the PEPSI?

1 Yes2 No

Which company provides more refrigerator and electronic equipments? Which company market share in mineral water leads? If yes, then what type?

………………………………………………………………………………… Any suggestion to the company:

…………………………………………………………………………

THANK YOU

Comparative analysis of Pepsi & Coke through Varun Beverages

Introduction about Varun Beverages, Pepsi Coke

Why the project was chosen

Pepsi Coke products