65

SUMMARY ON BRAND AUDIT OF PEPSI

The Research is particularly carried for finding out the brand

potency of Pepsi Co. with respect to its competitors like Coca cola

etc.

But before getting to the actual research work, the ‘Brand’ and its

related terms must be known. So Brand, Brand Identity, Image,

Equity, Valuation has been explained in the following project.

A brief about the Pepsi Co. has been given starting with the

company profile, its mission, history and activities has been

highlighted in the project.

Coming to the research part, according to the information gained,

Pepsi Co. holds various brands in food products, as well as

beverages, but the beverage products of Pepsi were banned in India

as it contained high level of pesticides but it was soon corrected

with the time.

65

The main rival of Pepsi Co. in Indian market was found out to be

Coca cola. Large number of issues and tough competition was seen

amongst the both companies.

Different marketing strategies were used by the companies to gain

the large market share. With time, it also introduced a variety of

products under its mother brand like, Coca cola introduced Sprite,

Fanta, Thums up were as at the same time Pepsi introduced slice,

Pepsi, 7up, Tropicana in order to provide a tough competition

The Later part of the project includes the methods and analytical

tools with various brands have been shown for comparison purpose

and hence it has been concluded that PepsiCo in Mumbai that it

holds the third position and market leader is thumps up.

65

BRAND

BRANDBRAND as defined by Philip Kotler as, "a name, term, symbol or

design or a combination of them which is intended to identify the

goods and services of one teller or a group of sellers and to

differentiate them from those of competitors."

Brand is a specific term and includes a name, symbol, sign or

design given to a product for easy identification. It provides

distinct identity to a product. Many products such as soaps,

detergent powder and cosmetics are known in the market by their

brand names e.g. Lux, Rexona, Colgate, etc.

In the present marketing system where identical products are quite

common branding is quite essential. A manufacturer can separate

65

his product from other identical products by giving special name

called as brand.

The word brand has continued to evolve to encompass identity —

it affects the personality of a product, company or service. It is

defined by a perception, good or bad, that your customers or

prospects have about you.

Characteristics of a Good Brand Name

A good brand name should have the following characteristics:

1) Distinctive: A unique and distinctive symbol is not only easy to

remember but also a distinguish feature.

2) Suggestive: A chosen name or symbol should be suggestive of

quantity, or may be associated with superiority or a great

personality.

3) Appropriate: Many of the products are surrounded by a certain

mystique in the minds of the customers. The name carefree is an

appropriate brand name of a sanitary towel.

4) Adaptable: It should be adaptable to new products. L.G is a

good brand name for TVs and VCRs, but when it is extended to

refrigerators and washing machines some of the sales appeal is lost.

65

5) Easy to remember: A brand should be easy to remember. It

should be easy to read, spell and pronounce.

6)Registrable: A brand should be registrable under the laws of

trademarks and copyrights.

BRAND IMAGE

Brand Image means the impression which the consumer develops

about a particular brand used by manufacturer. It is a mental

picture of the product developed among the consumers over a

period of time.

BRAND IDENTITY

Brand identity is a unique set of brand associations that the brand

strategist aspires to create or maintain. These associations represent

what the brand stands for and imply a promise to consumers from

the organization members.

BRAND EQUITY

65

Brand Equity is different from brand image and brand personality.

According to Edward Tauber brand equity means, "The

incremental value of a business above the value of its physical

assets due to the market position, achieved by its brand and the

extension potential of the brand"

Factors Determining Brand Equity:

Introduction

65

Research Objective

The sole objective of making of this research report is to know

about the present BRAND potency of PEPSI in comparison to

other brands of soft drinks competing in the Indian market and by

the help of a research to know that which soft drink brand has

highest brand potency. This report will further put a spotlight on

the various soft drinks competitors in the Indian Market and the

attitude and choice of the customers about their preferred soft

drinks.

BRAND VALUATION

In the current competitive environment, brand is assuming

importance as a commercial and institutional asset. It has become a

critical success factor for most organizations, from commercial

companies to professional firms.

WHY FIND THEIR VALUE

65

Brands may need to be valued for a variety of reasons, calculating

an amortization deduction, bidding for an acquisition, and

estimating damages in an infringement case etc. Because so many

occasions call for their valuation, understanding how they are

valued can be useful.

When valuing a brand, it is particularly important "for whom" that

value is being determined for, since the brand’s value is not the

same for the company that owns the brand as for a company with a

competing brand or for another company operating in the industry

with a brand that does not compete directly with it, etc.

Industry/Company Background

Soft drink market size for FY09 was around 270 million cases

(6480mn bottles). The market witnessed 5- 6% growth in the

early‘90s. Presently the market growth has growth rate of 7- 8%

per annum compared to 22% growth rate in the previous year. The

market size for FY10 was expected to be 7000 million bottles.

Soft Drink Production area

65

The market preference is highly regional based. While cola drinks

have main markets in metro cities and northern states of UP,

Punjab, Haryana etc. Orange flavored drinks are popular in

southern states. Sodas too are sold largely in southern states

besides sale through bars. Western markets have preference

towards mango flavored drinks. Diet coke presently constitutes just

0.7% of the total carbonated beverage market.

Growth promotional activities

The government has adopted liberalized policies for the soft drink

trade to give the industry a boast and promote the Indian brands

internationally. Although the import and manufacture of

international brands like Pepsi and Coke is enhanced in India the

local brands are being stabilized by advertisements, good quality

and low cost.

The soft drinks market till early 1990s was in hands of domestic

players like campa, thumps up, Limca etc but with opening up of

economy and the incoming of Multinational players like Pepsi and

Coca Cola the market has come totally under their control.

The distribution network of Coca cola had 6.5 lakhs outlets across

the country in FY09, which the company is planning to increase to

8 lakhs by FY11. On the other hand Pepsi Co's distribution

65

network had 6 lakh outlets across the country during FY09 which it

is planning to increase to 7.5 Lakh by FY11.

Types

Soft drinks are available in glass bottles, aluminum cans and PET

bottles for home consumption. Fountains also dispense them in

disposable containers Non-alcoholic soft drink beverage market

can be divided into fruit drinks and soft drinks. Soft drinks can be

further divided into carbonated and non-carbonated drinks. Cola,

lemon and oranges are carbonated drinks while mango drinks come

under non carbonated category.

The market can also be segmented on the basis of types of products

into cola products and non-cola products. Cola products account

for nearly 61-62% of the total soft drinks market. The brands that

fall in this category are Pepsi, Coca- Cola, Thumps Up, Diet Coke,

Diet Pepsi etc. Non-cola segment which constitutes 36% can be

divided into 4 categories based on the types of flavors available,

namely: Orange, Cloudy Lime, Clear Lime and Mango.

About PepsiCo & Its Products

PepsiCo Mission

65

"To be the world's premier consumer Products Company focused

on convenience foods and beverages. We seek to produce healthy

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."

Corporate Profile

PEPSICO IN INDIA

PepsiCo entered India in 1989 and has grown to become one of the

country’s leading food and beverage companies. One of the largest

multinational investors in the country, PepsiCo has established a

business which aims to serve the long term dynamic needs of

consumers in India.

PepsiCo India and its partners have invested more than U.S. $1

billion since the company was established in the country. PepsiCo

provides direct and indirect employment to 150,000 people

including suppliers and distributors.

PepsiCo nourishes consumers with a range of products from treats

to healthy eats, which deliver joy as well as nutrition and always,

good taste. PepsiCo India’s expansive portfolio includes iconic

65

refreshment beverages Pepsi, 7 UP, Mirinda and Mountain Dew, in

addition to low calorie options such as Diet Pepsi, hydrating and

nutritional beverages such as Aquafina drinking water, isotonic

sports drinks - Gatorade, Tropicana100% fruit juices, and juice

based drinks – Tropicana Nectars, Tropicana Twister and Slice.

Local brands – Lehar Evervess Soda, Dukes Lemonade and

Mangola add to the diverse range of brands

PepsiCo’s foods company, Frito-Lay, is the leader in the branded

salty snack market and all Frito Lay products are free of trans-fat

and MSG. It manufactures Lay’s Potato Chips; Cheetos extruded

snacks, Uncle Chips and traditional snacks under the Kurkure and

Lehar brands. The company’s high fiber breakfast cereal, Quaker

Oats, and low fat and roasted snack options enhance the healthful

choices available to consumers. Frito Lay’s core products, Lay’s,

Kurkure, Uncle Chips and Cheetos are cooked in Rice Bran Oil to

significantly reduce saturated fats and all of its products contain

voluntary nutritional labeling on their packets.

The group has built an expansive beverage and foods business. To

support its operations, PepsiCo has 43 bottling plants in India, of

which 15 are company owned and 28 are franchisee owned. In

addition to this, PepsiCo’s Frito Lay foods division has 3 state-of-

the-art plants. PepsiCo’s business is based on its sustainability

vision of making tomorrow better than today. PepsiCo’s

65

commitment to living by this vision every day is visible in its

contribution to the country, consumers and farmers.

Performance With Purpose

Performance with Purpose articulates

PepsiCo India's belief that its businesses are intrinsically connected

to the communities and world that surrounds it. Performance with

Purpose means delivering superior financial performance at the

same time as we improve the world.

To deliver on this commitment, PepsiCo India will build on the

incredibly strong foundation of achievement and scale up its

initiatives while focusing on the following 4 critical areas that have

a business link and where we believe that we can have the most

impact.

REPLENISHING WATER

PepsiCo India continues to replenish water and aims to achieve

positive water balance by 2009, which means it is committed to

saving and recharging more water than it uses in its beverage

plants.

WASTE TO WEALTH

65

PepsiCo India continues to convert Waste to Wealth, to make

cities cleaner. This award winning initiative has  established Zero

Solid Waste centers that benefit more than 2,00,000 community

members throughout the country.

PARTNERSHIP WITH FARMERS

PepsiCo India’s Agri-partnerships with farmers help more than

22,000 farmers across the country earn more.

HEALTHY KIDS

PepsiCo India will stay committed to the

health and well-being of children. It will

continue to provide children with a healthy and fun portfolio while

simultaneously tackling the calories out’ side of the equation by

expanding its Get Active programme for kids, especially for school

going children. PepsiCo will also launch and distribute products

directly aimed at addressing nutritional deficiencies and will

launch a pilot program that directly delivers against the United

Nations’ Millennium Development Goal to eradicate extreme

poverty and hunger by 2015.

PepsiCo’s global commitment to

Performance with Purpose

65

PepsiCo believes that its performance is fundamentally connected

to its purpose agenda which represents the commitment to give

back as the company grows. It is a continuing journey that spans

three major areas of focus – human, environmental and talent

sustainability.

Human Sustainability reflects PepsiCo’s goal of nourishing

consumers with products that range from treats to healthy eats.

PepsiCo’s products have always offered consumers nutrition as

well as great taste. The progress that PepsiCo has made under the

Human Sustainability pillar includes reformulating some of its

products to improve their nutritional profile while launching

products that reflect consumer demand for healthier nutritious

snacks and beverages. PepsiCo partners with Governments, health

officials and Non Governmental Organizations to help address

obesity concerns and it continues to provide consumers with new

product choices and innovations.

Environmental Sustainability is based on PepsiCo’s commitment to

strive to replenish the resources used where possible, and minimize

the impact on the environment. PepsiCo continues to work to

further reduce its water and electricity consumption and improve

its packaging sustainability. Across the world, PepsiCo has re-used

water from its processing plants and has worked with local

65

communities to provide access to clean water, while supporting

farmers to deliver “more crop per drop.”

Talent Sustainability is founded on PepsiCo’s belief that cherishing

its extraordinary group of people is crucial to building an

empowered workforce. PepsiCo pursues diversity and creates an

inclusive environment which encourages associates to bring their

whole selves to work. PepsiCo has increased female and minority

representation in the management ranks and has encouraged

employees to participate in community service activities while

continuing to create rewarding job opportunities for people with

different abilities.

Together, PepsiCo associates across the world are building on the

platform of Human, Environment and Talent Sustainability, while

delivering great financial results.

PepsiCo India’s Performance with Purpose

To deliver on the commitment of Performance with Purpose,

PepsiCo India continues to build on its strong foundation of

achievements and scale up its initiatives while focusing on the

following 4 critical areas that are linked to its business and where it

can have the most impact.

65

Pepsi is a soft drink that is produced and manufactured by

PepsiCo. It is sold in retail stores, restaurants, cinemas and from

vending machines. The drink was first made in the 1890s by

pharmacist Caleb Bradham in New Bern, North Carolina. The

brand was trademarked on June 16, 1903. There have been many

Pepsi variants produced over the years since 1898, including Diet

Pepsi, Crystal Pepsi, Pepsi Twist, Pepsi Max, Pepsi Free, Pepsi

AM, Pepsi Samba, Pepsi Blue, Pepsi Gold, Pepsi Holiday Spice,

Pepsi Jazz, Vanilla Pepsi, Pepsi X (available in Finland and

Brazil), Pepsi Next (available in Japan and South Korea), Pepsi

Raw, Pepsi Retro in Mexico, Pepsi One, Pepsi Ice Cucumber and

Pepsi White in Japan.

In October 2008, Pepsi announced they would be redesigning its

logo and re-branding many of its products by early 2009. In 2009,

Pepsi, Diet Pepsi and Pepsi Max began using all lower-case fonts

65

for name brands, and Diet Pepsi Max was re-branded as Pepsi

Max. The brand's blue and red globe trademark became a series of

"smiles," with the central white band arcing at different angles

depending on the product. As of January 2009, Pepsi's newer logos

have only been adopted in the United States. Currently, Pepsi Wild

Cherry and Pepsi ONE are the only two products that still use their

previous design. Diet Pepsi Wild Cherry, Diet Pepsi Lime, and

Diet Pepsi Vanilla received the redesign.

Origins

Pepsi was originally named "Brad's Drink", after its creator, a

pharmacist in New Bern, North Carolina. It was created in the

summer of 1893 and was later renamed Pepsi Cola in 1898,

possibly due the digestive enzyme pepsin and kola nuts used in the

recipe. Bradham sought to create a fountain drink that was

delicious and would aid in digestion and boost energy.

Another theory is that Bradham and his customers simply thought

the name "Pepsi" sounded good and reflected the fact that the drink

had some kind of "pep" in it because it was a carbonated drink.

And another theory is that the word Pepsi was chosen because it

reflected phonetically the sound of a can being opened, the sound

"pop" "schi", was condensed and simplified in the name "Pepsi".

This theory can be considered folklore only, since at the time of the

naming of the drink, Pepsi was sold in glass bottles and not metal

65

cans; and the pop top lid producing Pepsi's oddly phonetic sound

wouldn't be invented for another forty years.

In 1903, Bradham moved the bottling of Pepsi-Cola from his

drugstore into a rented warehouse. That year, Bradham sold 7,968

gallons of syrup. The next year, Pepsi was sold in six-ounce

bottles, and sales increased to 19,848 gallons. In 1929, Pepsi

received its first logo redesign since the original design of 1905. In

1926, the logo was changed again. In 1929, automobile race

pioneer Barney Oldfield endorsed Pepsi-Cola in newspaper ads as

"A bully drink...refreshing, invigorating, a fine bracer before a

race"

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. 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.

65

Rise

During the Great Depression, Pepsi gained popularity following the

introduction in 1936 of a 12-ounce bottle. Initially priced at 10

cents, sales were slow, but when the price was slashed to five

cents, sales increased substantially. With a radio advertising

campaign featuring the jingle "Pepsi cola hits the spot / Twelve full

ounces, that's a lot / Twice as much for a nickel, too / Pepsi-Cola is

the drink for you," Pepsi encouraged price-watching consumers to

switch, obliquely referring to the Coca-Cola standard of six ounces

a bottle for the price of five cents (a nickel), instead of the 12

ounces Pepsi sold at the same price. Coming at a time of economic

crisis, the campaign succeeded in boosting Pepsi's status. In 1936

alone 500,000,000 bottles of Pepsi were consumed. From 1936 to

1938, Pepsi-Cola's profits doubled.

Pepsi's success under Guth came while the Loft Candy business

was faltering. Since he had initially used Loft's finances and

facilities to establish the new Pepsi success, the near-bankrupt Loft

Company sued Guth for possession of the Pepsi-Cola company. A

long legal battle, Guth v. Loft , then ensued, with the case reaching

the Delaware Supreme Court and ultimately ending in a loss for

Guth.

65

Brands of PEPSI

Food

Cheetos

Kurkure

Lay’s

Lehar Namkeen

Quaker Oats

Uncle Chips

Beverages

Pepsi

7UP

Aquafina

Gatorade

Mountain Dew

Nimbooz

Slice

Tropicana

Tropicana Twister

Mirinda

65

Food Products

Cheetos Kurkure Uncle Chips

Lehar Quaker Oats Lays

65

Beverages

Pepsi 7UP Aquafina

Gatorade Mountain Dew Slice

Tropicana Nimbooz Mirinda

65

Marketing

A bottle of Pepsi with its 2003-2008 logo. This Pepsi logo is still

used with Pepsi Wild Cherry, Pepsi ONE, and in many countries.

In 1975, Pepsi introduced the Pepsi Challenge marketing campaign

where PepsiCo set up a blind tasting between Pepsi-Cola and rival

Coca-Cola. During these blind

taste tests the majority of

participants picked Pepsi as the

better tasting of the two soft

drinks. PepsiCo took great

advantage of the campaign with

television commercials reporting

the test results to the public.

In 1976 Pepsi, RKO Bottlers in Toledo, Ohio hired the first female

Pepsi salesperson, Denise Muck, to coincide with the United States

bicentennial celebration.

In 1996, PepsiCo launched the highly successful Pepsi Stuff

marketing strategy. By 2002, the strategy was cited by Promo

Magazine as one of 16 "Ageless Wonders" that "helped redefine

promotion marketing."

65

In 2007, PepsiCo redesigned their cans for the fourteenth time, and

for the first time, included more than thirty different backgrounds

on each can, introducing a new background every three weeks. One

of their background designs includes a string of repetitive numbers

73774. This is a numerical expression from a telephone keypad of

the word "Pepsi."

In late 2008, Pepsi overhauled their entire brand, simultaneously

introducing a new logo and a minimalist label design. The redesign

was comparable to Coca-Cola's earlier simplification of their can

and bottle designs. Due to the timing of the new logo release, some

have criticized the logo change, as the new logo looked strikingly

similar to the logo used for Barack Obama's successful presidential

campaign, implicating a bias towards the President. Also in 4th

quarter of 2008 Pepsi teamed up with Google/Youtube to produce

the first daily entertainment show on Youtube for Youtube. This

daily show deals with pop culture, internet viral videos, and

celebrity gossip. Poptub is refreshed daily from Pepsi.

Since 2007, Pepsi, Lay's, and Gatorade have had a "Bring Home

the Cup™," contest for Canada's biggest hockey fans. Hockey fans

were asked to submit content (videos, pictures or essays) for a

chance at winning a party in their hometown with The Stanley Cup

and Mark Messier.

In 2009, "Bring Home the Cup™," changed to "Team Up and

Bring Home the Cup™." The new installment of the campaign asks

65

for team involvement and an advocate to submit content on behalf

of their team for the chance to have the Stanley Cup delivered to

the team's hometown by Mark Messier.

Bans in India

Pepsi arrived on the black market in India in 1988. In 2003 and

again in 2006, the Centre for Science and Environment (CSE), a

non-governmental organization in New Delhi, claimed that soda

drinks produced by manufacturers in India, including both Pepsi

and Coca-Cola, had dangerously 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. In the Indian state of Kerala, sale and production of

Pepsi-Cola, along with other soft drinks, were banned in 2006

following partial bans on the drinks in schools, colleges and

hospitals in five other Indian states. On September 22, 2006, the

High Court in Kerala overturned the Kerala ban ruling that only the

central government can ban food products.

65

Rivalry with Coca-Cola

Main article: Cola Wars

According to Consumer Reports, in the 1970s, the rivalry

continued to heat up the market. Pepsi conducted blind taste tests

in stores, in what was called the "Pepsi Challenge". These tests

suggested that more consumers preferred the taste of Pepsi (which

is believed to have more lemon oil, less orange oil, and uses

vanillin rather than vanilla) to Coke. The sales of Pepsi started to

climb, and Pepsi kicked off the "Challenge" across the nation. This

became known as the "Cola Wars."

In 1985, The Coca-Cola Company, amid much publicity, changed

its formula. The theory has been advanced that New Coke, as the

reformulated drink came to be known,

was invented specifically in response

to the Pepsi Challenge. However, a

consumer backlash led to Coca-Cola

quickly introducing a modified version

of the original formula (removing the

expensive Haitian lime oil and

changing the sweetener to corn syrup)

as Coke "Classic".

65

In the U.S., Pepsi's total market share was about 31.7 percent in

2004, while Coke's was about 43.1 percent.

Overall, Coca-Cola continues to outsell Pepsi in almost all areas of

the world. However, exceptions include Saudi Arabia; Pakistan

(Pepsi has been a dominant sponsor of the Pakistan cricket team

since the 1990s); the Dominican Republic; the Canadian provinces

of Quebec, Newfoundland and Labrador and Prince Edward Island;

and Guatemala..

Pepsi had long been the drink of Canadian Francophones and it

continues to hold its dominance by relying on local Québécois

celebrities (especially Claude Meunier, of La Petite Vie fame) to

sell its product. PepsiCo use the slogan "here, it's Pepsi" (Ici, c'est

Pepsi) to answer to Coca-cola publicity "Everywhere in the world,

it's Coke" (Partout dans le monde, c'est Coke).

By most accounts, Coca-Cola was India's leading soft drink until

1977 when it left India after a new government ordered The Coca-

Cola Company to turn over its secret formula for Coke and dilute

its stake in its Indian unit as required by the Foreign Exchange

Regulation Act (FERA). In 1988, PepsiCo gained entry to India 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. In 1993, The Coca-Cola

65

Company returned in pursuance of India's Liberalization policy. In

2005, The Coca-Cola Company and PepsiCo together held 95%

market share of soft-drink sales in India. Coca-Cola India's market

share was 52.5%.

A sticker from a USSR-produced Pepsi

bottle. The logo shown is a version used from

1973-91.

In Russia, Pepsi initially had a larger market share than Coke but it

was undercut once the Cold War ended. In 1972, Pepsico company

struck a barter agreement with the then government of the Soviet

Union, in which Pepsico was granted exportation and Western

marketing rights to Stolichnaya vodka in exchange for importation

and Soviet marketing of Pepsi-Cola. This exchange led to Pepsi-

Cola being the first foreign product sanctioned for sale in the

U.S.S.R..

Reminiscent of the way that Coca-Cola became a cultural icon and

its global spread spawned words like "coca colonization", Pepsi-

Cola and its relation to the Soviet system turned it into an icon. In

the early 1990s, the term "Pepsi-stroika" began appearing as a pun

on "perestroika", the reform policy of the Soviet Union under

Mikhail Gorbachev. Critics viewed the policy as a lot of fizz

65

without substance and as an attempt to usher in Western products

in deals there with the old elites. Pepsi, as one of the first American

products in the Soviet Union, became a symbol of that relationship

and the Soviet policy. This was reflected in Russian author Victor

Pelevin's book "Generation P".

In 1989, Billy Joel mentions the rivalry between the two companies

in the song We Didn't Start The Fire. The line "Rock & Roller Cola

Wars" refers to Pepsi and Coke's usage of various musicians in

their advertising campaigns. Coke used Paula Abdul,while Pepsi

used Michael Jackson. They then continued to try to get other

musicians to advertise their beverages. Whilst filming the Pepsi

advert Michael Jackson burned his hair.

In 1992, following the Soviet collapse, Coca-Cola was introduced

to the Russian market. As it came to be associated with the new

system, and Pepsi to the old, Coca-Cola rapidly captured a

significant market share that might otherwise have required years

to achieve. By July 2005, Coca-Cola enjoyed a market share of

19.4 percent, followed by Pepsi with 13 percent.

Ingredients

65

Pepsi-Cola contains basic ingredients found in most other similar

drinks including carbonated water, high fructose corn syrup, sugar,

colorings, phosphoric acid, caffeine, citric acid, and natural flavors.

The caffeine-free Pepsi-Cola contains the same ingredients minus

the caffeine.

The original Pepsi-Cola recipe was available from documents filed

with the court at the time that the Pepsi-Cola Company went

bankrupt in 1929. The original formula contained neither cola nor

caffeine.

Competitors

Coca-Cola

R. C. Cola

Brands Under PepsiCo (used in research)

Miranda

Slice

Mountain Dew

7 Up

MIRANDA

65

Mirinda is a brand of soft drink available in fruit varieties

including orange. A

"citrus" flavour is also

available in certain areas of

the Middle East. It is part

of a beverage area often

referred to as the flavor

segment, comprising

carbonated and non-

carbonated fruit-flavored

beverages. The orange

flavor of Mirinda represents

the majority of Mirinda sales worldwide.

Mirinda is owned by PepsiCo and is primarily commercialized

outside of North America. It competes with Coca-Cola's Fanta and

Cadbury-Schweppes's Orange Crush brand, with flavor brands

local to individual countries. As with most soft drinks, Mirinda is

available in multiple formulations depending on the taste of

individual markets.

History

65

Mirinda was originally produced in Spain.

It became available in the United States in late 2003 in bilingual

packaging, and initially sold at a reduced price, presumably to

become a competitor against Coca-Cola's Fanta brand. Since 2005,

Mirinda flavors have largely been sold under the Tropicana Twister

Soda brand in the United States except in Guam, where Pepsi

began selling it under the Mirinda brand in 2007 (replacing

Chamorro Punch Orange). Pepsico also tried to sell Mirinda in

Brazil in late 1996, but the brand was discontinued in 1997 after

weak sales, keeping the local brand Sukita under production.

Recent events

Mirinda campaigns over the years have included the Mirinda

Woman campaign in the 1970s and a campaign in the 1994-1996

time frame with a campaign using the tag-line 'The Taste is in

Mirinda' with the Blue Man Group. In some markets, including

Mexico, the Blue Man Group campaign re-launched Mirinda away

from a multi-flavor positioning to a brand solely focused on the

orange flavor. The Blue Man Group campaign showed the Blue

Man Group competing to drink orange Mirinda and celebrating a

successful drink with an open-mouth exclamation of 'Mirindaaaa'.

Also in this same country Mirinda launch a campaign with the

65

Pokémon anime series to the children with a promotion of many

gadgets with the characters of the manga series.

A recent, highly successful advertising campaign was launched in

India featuring a handsome young gentleman, Stefan Persson,

gallivanting about town in hunt of his sweet sweet Mirinda.

Stefan's credible portrayal of the Mirinda-obsessed youth earned

the campaign accolades in Brand Equity, the advertising section of

a leading financial newspaper.

Mirinda advertising campaigns over the last fifteen years have been

handled by Pepsi's stable of creative agencies, including BBDO

and J Walter Thompson.

Mirinda also regularly introduces special movie-themed editions in

Asia. Recent ones included Batman (Blueberry) and Superman

(Fruit punch). Mirinda has also recently released a new flavour of

drinks called Mirinda Sorbet. They come in two flavours:

Raspberry and Lime.

Facts

Pepsi and Mirinda (orange flavor) with Arabic labels (bottled,

left to right).

65

Mirinda is available in most continents of the world with

other PepsiCo products. It is also in the Middle Eastern

markets, but the name is commonly mispronounced as

"Miranda" due to its Arabic spelling.

The name "Mirinda" means "amazing" in Esperanto. There

is a claim that the original manufacturer of Mirinda, which

later sold the brand to PepsiCo, was an Esperanto-speaking

individual.

Spanish-speaking consumers may also associate it with

merienda or afternoon (teatime) snack.

Mirinda's primary formulation is as an artificially flavored

beverage; however, it has been produced in the past with a

percentage of fruit juice, usually due to local tax benefits

tied to non-artificial juice ingredients.

Mirinda was sold in a distinctive ribbed glass bottle in

Australia and parts of Southeast Asia, when originally

released there.

SLICE

Slice is a line of fruit-flavored soft

drinks manufactured by PepsiCo and

introduced in 1984, with the lemon-lime flavor replacing Teem.

65

Varieties of Slice have included Apple, Fruit Punch, Grape,

Passion fruit, Peach, Mandarin Orange, Pineapple, Strawberry,

Cherry Cola, "Red", Cherry-Lime, and Dr Slice. Originally, the

drink was known for containing 10% fruit juice, but that was

discontinued by 1994.

The original design of the can was a solid color, related to the

flavor of the drink. These were replaced around 1994 with black

cans, with a colorful burst (once again, related to the flavor of the

drink), along with slicker graphics. Around 1997, the cans became

blue with color-coordinated swirls. The original orange flavor was

reformulated at this time with an infiltration marketing campaign

led by Danieli. The new flavor's slogan was "it's orange, only

twisted." Orange Slice has since

been changed back to its original

flavor.

Lemon Lime Slice was replaced by

Sierra Mist in most markets in the

summer of 2000. Sierra Mist

became a national brand in 2003.

The rest of the Slice line was

replaced in most markets by

Tropicana Twister Soda in the

summer of 2005, although the Dr

Slice variety can still be found in some fountains. It has been

discontinued in more and more markets though.

65

In early 2006, the Slice name was resurrected for a new line of diet

sodas from Pepsi, called Slice ONE. Initially, Slice ONE was

available exclusively at Wal-Mart stores, in orange, grape, and

berry flavors. All three flavors are sweetened with Splenda.

In 2009 Slice (Orange, Diet

Orange, Grape, Strawberry,

Peach) will be sold only in

Wal-Mart Stores.

MOUNTAIN DEW

Mountain Dew (also known as Mtn Dew as of late 2008) is a soft

drink distributed and manufactured by PepsiCo. The main formula

was invented in Knoxville, Tennessee, named and first marketed in

Knoxville and Johnson City, TN in the 1940s, then by Barney and

65

Ally Hartman, in Fayetteville, North Carolina and across the

United States in 1964. When removed from its characteristic green

bottle, Mountain Dew is bright yellow-green and translucent.

As of 2007, Mountain Dew was the fourth-best-selling carbonated

soft drink in the United States, behind only Coca-Cola Classic,

Pepsi-Cola, and Diet Coke. Diet Mountain Dew ranked ninth in

sales in the same year.

On October 15, 2008, it was announced that Pepsi would be

redesigning their logos and re-branding many of their core products

by the end of 2008. At the same time they registered the name "mtn

dew" and a related logo with the United States Patent and

Trademark Office. This also announced the re-launch of Mountain

Dew in the UK, which was released by Pepsi in 1996 but was

dropped in 1998 due to low sales.

As of April 2009, the flavors "Code Red" and "Live Wire"

continue to use the previous Mountain Dew design.

Ingredients

Mountain Dew lists its ingredients as:

Carbonated water

Sugar (replaced by High fructose corn syrup (HFCS) in

much of the United States)

Concentrated orange juice

65

Citric acid

Natural flavors

Sodium benzoate (preserves freshness)

Caffeine (54 mg per 12 US fluid ounces (350 ml))

Sodium citrate

Erythorbic acid (preserves

freshness)

Gum arabic

Calcium disodium EDTA

(to protect flavor)

Brominated vegetable oil

Thiamin hydrochloride

7 UP

7 Up is a brand of a lemon-lime flavored non-caffeinated soft

drink. The rights to the brand are held by Dr Pepper Snapple Group

in the United States, and PepsiCo (or its licensees) in the rest of the

world. The 7 Up logo includes a red spot between the '7' and 'Up';

this red spot has been animated and used as a mascot for the brand

as Cool Spot.

65

Name

According to Professor Donald Sadoway (MIT) the name is

derived from the atomic mass of Lithium, 7, which was originally

one of the key ingredients of the drink (as lithium citrate).

However, there are numerous myths explaining the name. One

popular myth is that its creator named the soft drink after seeing a

cattle brand with the number 7 and the letter U. Other theories

suggest that the drink was formulated with seven flavors plus the

bubbles from the drink's carbonation (the bubbles go up). Other

ideas include the original bottle contained seven ounces; its creator

came up with the name while playing dice; that it was the 7th large

commercial lemonade brand that tasted the same. Another rumor

has it that the name was created because the company had

previously failed six times, hence the name "7 Up". Before the

formula change in 2006, a can of 7 Up included seven ingredients.

The "Up" in the drink's name might refer to the original inclusion

of lithium citrate, when it was marketed as a patent medicine to

cure hangovers.

Some people mistakenly believe that the name 7 Up comes from

the belief that its pH is 7.0 and therefore neutral. This is not the

case at all: the pH of 7 Up is comparable to many other soft drinks.

At a pH of 3.67, Diet 7 Up is less acidic than lemon juice (pH 2.3),

vinegar (pH 2.9) or wine (pH 3.5).

65

History

7 Up was created by Charles Leiper Grigg who launched his St.

Louis-based company The Howdy Corporation in 1920. Grigg

came up with the formula for a lemon-lime soft drink in 1929. The

product, originally named "Bib-Label Lithiated Lemon-Lime

Soda", was launched two weeks before the Wall Street Crash of

1929. It contained lithium citrate, a mood-stabilizing drug. It was

one of a number of patent medicine products popular in the late-

19th and early-20th centuries; they made claims similar to today's

health foods. Specifically it was marketed as a hangover cure. The

product's name was soon changed to 7 Up.

The Great Depression was just the beginning of the business

challenges the product would face. In its early years, there were

around 600 lemon-lime beverage brands being sold in the US. 7 Up

was able to survive and become the market leader in the category

by being one of the first to be nationally distributed as well as

being marketed as more healthy than other soft drinks.

The success of 7 Up led Grigg to rename his company to "The

Seven Up Company" in 1936.

Lithium citrate was removed from 7 Up's formula in 1950.

65

Expanding the brand beyond a niche market, major competitors

began to set their sights on it such as The Coca-Cola Company

with its Sprite brand introduced in 1961. Sprite would not

challenge 7 Up's position seriously until the 1980s when Coke

forced its major bottlers, then distributing 7 Up, to drop the

beverage in deference to Sprite. 7 Up challenged Coke's actions in

court as "anti-competitive", a challenge they eventually lost.

Formula

7 Up has been reformulated several times since its launch in 1929.

In 2006, the version of the product sold in the U.S. was re-

formulated so that it could be marketed as being "100% Natural".

This was achieved by eliminating the preservative calcium

disodium EDTA, and replacing sodium citrate with potassium

citrate in order to reduce the beverage's sodium content. This re-

formulation contains no fruit juice and is still sweetened with high

fructose corn syrup (HFCS). The manufacturing process used in

the production of HFCS has led some public health and special

interest groups to challenge the ad campaign's "natural" claims. In

65

2007, after the Center for Science in the Public Interest threatened

to sue 7 Up, it was announced that 7 Up would stop being

marketed as "100% natural". Instead, It is now promoted as having

"100% Natural Flavors". The controversy does not extend to other

countries, such as the United Kingdom, where high fructose corn

syrup is not generally used in foods, including 7 Up.

Methods used during my research:-

Interview method

During the research I used the personal interview method. I asked

the questions generally face to face. Sometime only for the

appointment I used the telephonic method.

Questionnaire method

Mostly I used the proper sequencing of the questions

I used rating scale method

Reason: - I think that this type of question is very easy and

attractive to give the answer for respondent.

65

I also used multiple choice type questions.

Reason: - because this type of question is also easy for the

respondent to give the answer. This is also helpful for clear and

reasonable analysis.

Open ended: - this type of question I also used in the form of

personal interview.

Research Design

The design that is used in this project is exploratory design. The

reason for choosing this design was to get clear response from the

customers.

I also used descriptive research design.

Research Instrument used

In this research I used mainly the structured questionnaire for

getting the different type of information.

Sample Size

My sample size for this research report was of 50 individuals.

65

Fieldwork

It includes giving out in the field to collect required information

and data from the concerned person.

I used to visit major educational institutes, localities, shops, malls

usually area wise conducting short interviews & giving awareness

and for the promotion about the brand. Under this survey my main

objective was to have an interaction with its users and to find out

their preferences.

ANALYTICAL TOOLS USED

Different types of charts are used :

1) Pie

2) Cylindrical Charts

3) Column Charts

4) Table of all percentage.

About the Research

Particularly about the project, this research was carried to know the

Brand potency about the various brands of soft drinks in Indian

Market on the basis of calculations of several values of each brand

namely:

65

1. Value Of Memorization (VM): this is value of a brand

which states the degree of remembrance of a particular

brand. It tells that how much does one individual remember

about the brand.

2. Value Of Association (VA): this is the value of the brand

which tells the degree of association of a brand for an

individual to his personal life experiences.

3. Value Of Description (VD): this is the value of the brand

which tells the degree of a brand, that how much does it

describes its features according to its brand name.

4. Value Of Motivation (VMo): this tells the value of the

brand in the terms of the degree of motivation which the

brand gives to the user to buy it.

5. Value Of Reurchase (VR): this tells the value of a brand

according to which it can be calculated and stated that an

individual will repurchase the brand.

Market Potency = VM*VA*VD*VMo*VR

Soft drink Brands Chosen for Research

1. Pepsi

2. Coca-cola

65

3. Thums Up

4. Mountain Dew

5. Sprite

6. 7 Up

7. Maaza

8. Slice

9. Mirinda

10.Fanta

Data Analysis & Interpretation

1. People going for Brand wise or Taste wise in soft drink

brands? (out of 100)

65

23

77

Brandwise

Tastewise

Interpretation:

According to the above mentioned question, it was asked that

whether the user have soft drinks on the basis of Brand or its taste.

Therefore it can be interpreted from the above graph that 77% of

the sample size goes for soft drinks on the basis of its taste whereas

23% of the sample size goes on the basis of its brand.

Brand wise Taste wise

23 77

2. Average, maximum & minimum age of the sample ? (out of

100)

65

Interpretation:

According to the interpretation of this graph we can conclude that

the average age of the sample is of 23 years, maximum age of the

sample is of 49 years and minimum age of the sample is of 16

years.

Average Age 23

Maximum Age 49

Minimum Age 16

3. Value of memorization for each soft drink brand.

0

10

20

30

40

50

60

Average Age Maximum Age Minimum Age

Series1

65

Value of Memorization

12%

12%

11%

10%8%

10%

10%

10%

9%

8%Pepsi

Coke

Thums up

Miranda

Slice

Maaza

Mountain Dew

Sprite

7 UP

Fanta

Interpretation:

According to the diagram Brand Pepsi & Coke holds the maximum

Value of Memorization among all the other brands i.e. these brands

are quickly comes into the mind of the consumers. Whereas Slice

& fanta holds the least value of memorization (8%).

On the scale of 5

Pepsi Coke Thums

up

Miranda Slice

4.34 4.19 4.16 3.48 3.01

Maaza Mountain

Dew

Sprite 7 UP Fanta

3.62 3.58 3.58 3.29 2.95

4. Value of Repurchase for each soft drink brand.

65

Value Of Repurchase

11%

11%

11%

10%9%

11%

10%

10%

9%8%

Pepsi

Coke

Thums up

Miranda

Slice

Maaza

Mountain Dew

Sprite

7 UP

Fanta

Interpretation:

According to the diagram Brand Pepsi, coke, Maaza & Thums Up

holds the maximum Value of Repurchase among all the other

brands (11%) i.e. these brands are easily repurchased by the

customers. Whereas Fanta holds the least value of repurchase (8%).

On the scale of 5

Pepsi Coke Thums

up

Miranda Slice

3.54 3.56 3.82 3.07 2.97

Maaza Mountain

Dew

Sprite 7 UP Fanta

3.61 3.07 3.29 2.84 2.49

5. Value of motivation for each soft drink brand.

65

Vlaue Of Motivation

11%

11%

13%

9%9%10%

10%

10%

9%8%

Pepsi

Coke

Thums up

Miranda

Slice

Maaza

Mountain Dew

Sprite

7 UP

Fanta

Interpretation:

According to the diagram Thums Up holds the maximum Value of

Motivation among all the other brands (13%) i.e. this brand easily

motivates the customers. Whereas Fanta holds the least value of

motivation (8%).

On the scale of 5

Pepsi Coke Thums

up

Miranda Slice

3.43 3.43 3.76 2.88 2.83

Maaza Mountain

Dew

Sprite 7 UP Fanta

3.28 3.27 3.19 2.9 2.37

6. Value of Association for each soft drink brand.

65

Value Of Association

13%

12%

12%

9%8%

9%

10%

10%

10%

7%Pepsi

Coke

Thums up

Miranda

Slice

Maaza

Mountain Dew

Sprite

7 UP

Fanta

Interpretation:

According to the diagram Pepsi holds the maximum Value of

Association among all the other brands (13%) i.e. this brand is

easily associated by the customers to their personal life

experiences. Whereas, Fanta holds the least value of Association

(7%).

On the scale of 5

Pepsi Coke Thums

up

Miranda Slice

4.43 4.33 4.47 3.32 3

Maaza Mountain

Dew

Sprite 7 UP Fanta

3.19 3.59 3.54 3.43 2.63

7. Value of Description for each soft drink brand.

65

Vlaue Of Description

10%

11%

12%

9%

10%12%

10%

9%

9%

8%Pepsi

Coke

Thums up

Miranda

Slice

Maaza

Mountain Dew

Sprite

7 UP

Fanta

Interpretation:

According to the diagram Thums up & Maaza holds the maximum

Value of Description among all the other brands (12%) i.e. this

brand is easily Describes its brands name according to the taste and

brand it holds. Whereas, Fanta holds the least value of Description

(8%).

On the scale of 5

Pepsi Coke Thums

up

Miranda Slice

3.2 3.51 3.96 2.86 3.32

Maaza Mountain

Dew

Sprite 7 UP Fanta

3.75 3.29 3.06 2.95 2.56

8. Which brand holds the maximum market potency?

65

This is the original question for which this whole research was

carried on, the answer for the maximum market potency holder

brand can be interpreted by the following charts:

0%0%0%0%0%0%0%0%0%0%

15%

16%

22%6%5%

11%

9%

8%

6% 2% Pepsi

Coke

Thums up

Miranda

Slice

Maaza

Mountain Dew

Sprite

7 UP

Fanta

747 778

1058

292 252

513424 407

274

117

0

200

400

600

800

1000

1200

Pepsi

Coke

Thum

s up

Mira

ndaSlic

e

Maa

za

Mou

ntain D

ew

Sprite

7 UP

Fanta

Series1

Series2

65

Interpretation

According to the above mentioned bar and chart it can clearly be

known that in Indian Soft drink market specifically in Mumbai

region Brand Thums Up has a maximum market Potency i.e. the

brand Thums Up is very well known, remembered, and demended

the most in the market by the consumers. Percentage wise Thums

Up holds 22% of the total Brand Potency while Fanta holds the

minimum market Potency.

It can be noticed thoroughly that both the maximum and the

minimum potency brands are owned by COCA COLA.

Pepsi holds the third position with 15% of brand potency. Above

bar chart also deists the brands with their levels in the analysis.

Pepsi Advertising

65

Advertising is a common means used by many organizations or

companies all over the world to make their products or services

well know and are easier to be sold. Every year many hundreds of

advertisements are published through out the mass media such as

on billboards, on signs, on radios, ration in newspapers, on

television and internet, which are the main instruments, that we use

and see everyday. Although, there are not many successful

products and not everyone remembers them but PEPSI advertisings

are different because most of their customers are repeat consumers.

Therefore, this report will discuss the advertising strategies of

PEPSI and how it stands as one of the leaders of the cola beverage

industry. For several years the main consumers of PEPSI were

teenagers and young adults. Most of its advertisings used teenager

presenters or superstars who were hero of young people. Nowadays

PEPSI wants to gain more market share so it is extending its

market by produce many rang of product to suite every groups of

consumer such as tea, coffee, water, energy drink and sport drink.

Even today Pepsi is the one of leader of beverage industry but it

still follow the Coca-Cola so it has to do every way to gain more

market share and keep its position in the top of cola beverage. As

we know the main customer target is teenagers and young adults

and they have similarly interested around the world there are sport

and music. In fact, the company is recognized worldwide as a

65

leader in advertising, marketing, sales and promotional initiatives.

Advertising make fun that is a purpose of Pepsi Other point that

Pepsi has to think about it is how can it extend its repeat consumer?

In currently a new target group for Pepsi is gay. and people aged

23-29, who worry about their bodies and health and people who

like to drink soft drinks but do not like the carbonation and sugar in

them. 95 billion of Coca-Cola, Pepsi brand value is far less

stronger. com), Pepsi and other Pepsi Cola products including: Diet

Pepsi, Caffeine Free Pepsi, Caffeine Free Diet Pepsi, Pepsi Max,

Mountain Dew, Slice, Diet Slice, Gotorade, Sobe and Mug brands.

a cool and up-to-date so nobody can say they do not know what

Pepsi is. However brand value of the Pepsi in 2001 is just evaluate

for $6. For example nowadays Pepsi Co has launched a new game

called "PEPSI FOOT" for mobile phone, the game is a fantasy

soccer game where players build a virtual team based on real life

soccer players and challenge each others team to cyber face-offs

via SMS. Pepsi is one of the major sponsors of PrideVision, the 24

hours gay TV network in Canada.

Food Safety Programs

65

PepsiCo is dedicated to producing the safest, highest quality and

best tasting beverages and foods in every part of the world.

Developing and maintaining robust Food Safety programs is how

we assure safety for every package, every day in every market.

PepsiCo has detailed internal programs and procedures for Food

Safety. Below is a summary of our policies, programs and actions

designed to keep our products safe and meeting high quality

standards.

PepsiCo Food Safety

PepsiCo has an excellent track record in delivering safe products

through our PepsiCo Food Safety Policy. Our efforts are focused

on building a sustainable food safety program and providing the

framework to develop and sustain food safety of existing brands

and new innovation. The scope covers the design, manufacture and

distribution of beverage and food products. Our programs and

procedures apply to all current and future divisions in PepsiCo.

PepsiCo's programs and procedures for Food Safety and Quality

address the following key areas:

65

1. Organizational Responsibility: The food safety

responsibilities of all individuals at all levels of the

organization are outlined and documented in order to ensure

that the authority and accountability of all quality and food

safety decisions are well understood.

2. Critical Food Safety Elements: Our comprehensive food

safety program ensures compliance with the following

critical food safety elements: HACCP, low acid

manufacturing, allergen management, crisis management,

foreign object control, good manufacturing practices

(GMP's) and pest management.

3. Regulatory: PepsiCo ensures that all products and processes

are in compliance with applicable regulatory requirements.

These include areas such as ingredients, GMOs, labeling, net

weight, pesticide and chemical residues, juice HACCP,

flavor regulations and any local or country-specific

requirements.

4. Food Security: It is the responsibility of each PepsiCo

operation to plan, design, implement and maintain a

comprehensive facility security plan in order to ensure our

products are safe for human consumption. A facility security

plan is implemented by each plant, facility and distribution

center, in accordance with the baseline standards and

framework established by the PepsiCo Security

Organization. It includes an annual review of effectiveness

and is updated as necessary.

65

5. Product Design: All PepsiCo products, processing

equipment and facilities are designed, developed and

commercialized in a manner that enables manufacturing sites

to produce product that is safe, legal and fit for human

consumption. The Research and Development and

commercialization teams are responsible for ensuring

processes and products meet all regulatory requirements and

are designed to be safe for human consumption. Equipment

design and procurement must meet all standards for GMP

compliance and sanitary design.

6. Manufacturing: PepsiCo is committed to the manufacture

of products that are safe and fit for human consumption. We

achieve this by ensuring the process is controlled, raw

materials are managed appropriately and the finished product

is handled correctly. Manufacturing includes the following

equipment process controls: Conformance to specification,

equipment preventative maintenance, calibration, equipment

verification, start-up and change-over operation. The

following programs manage ingredients, in-process materials

and finished goods: Product traceability, inspection and

testing procedures, incoming raw material and packaging

controls, water quality, packaging quality, control of non-

conforming product, product rework and review and

approval of variances. Our warehouses are routinely

assessed, approved and monitored.

65

7. Documentation and Records: PepsiCo ensures that all

documentation and records are compliant to government

regulations and the Food Safety Policy. This includes a

defined master list of documents and assigned responsibility

for managing documents. Records are maintained to

demonstrate compliance with manufacturing specifications

and policies.

8. Supply Quality: All purchased ingredients are procured

against an approved specification from an approved vendor

facility. Suppliers must pass a rigorous approval process.

Manufacturing facilities only receive raw ingredients from

approved suppliers. Supplier performance is routinely

monitored, recorded and reassessed.

9. Auditing and Self Assessments: PepsiCo has an established

framework in which it executes yearly food safety audits of

manufacturing and suppliers. These audits provide

assessments of manufacturing facilities for compliance,

effectiveness and improvement in accordance with PepsiCo

food safety policies and procedures.

10.Corrective and Preventative Action: Corrective and

preventive action is initiated in response to non-

conformances that may occur relative to process, product or

package specifications. Effectiveness is verified by the

prevention of reoccurrences. The corrective action program

includes effective and timely handling of consumer /

65

customer complaints, root cause analysis, audits for program

effectiveness and follow-up investigations.

11.Training: Each functional department identifies training

needs and provides training for all employees including full-

time, part-time, temporary and contractors. This ensures that

they have the appropriate level of education, experience and

training necessary to effectively perform the required

activities specified in the PepsiCo Food Safety Policy. A

training business plan must be established to address food

safety training for HACCP, allergen management, low acid

manufacturing, GMP's, control of nonconforming product,

employee safety, food security and specific job applications.

12.Consumer and Customer Satisfaction: PepsiCo ensures

that procedures are in place to monitor consumer and

customer satisfaction. The procedures must provide timely

and accurate responses to customer complaints and strive for

continuous improvement.

65

Plant Quality Organization

PepsiCo Quality professionals assess product compliance to the

Quality Policy. This program is focused on processes and

procedures supporting quality policies and prioritization of critical

risk areas. PepsiCo Quality professionals assess product

compliance to the Quality Policy. This program is focused on

processes and procedures supporting quality policies and

prioritization of critical risk areas. Our Quality agenda is lead by

quality professionals in various regions who oversee the following

areas:

Food Safety

Innovation (R&D)

Manufacturing Quality

Co-manufacturing Quality

Supplier Quality

65

Quality at every level

At every level of Pepsi-Cola Company, we take great care to

ensure that the highest standards are met in everything we do. In

our products, packaging, marketing and advertising, we strive for

excellence because our consumers expect and deserve nothing less.

We promise to work toward continuous improvement in all areas

of our organization.

At every step of our manufacturing and bottling process, strict

quality controls are followed to ensure that Pepsi-Cola products

meet the same high standards of quality that consumers have come

to expect and value from us. We also follow strict quality control

procedures during the manufacturing and filling of our packages.

Each bottle and can undergoes a thorough inspection and testing

process. Containers are then rinsed and quickly filled through a

high-speed, state-of-the-art process that helps prevent any foreign

material from entering the product. Additional quality control

measures help to ensure the integrity of Pepsi-Cola products

throughout the distribution process, from warehouse to store shelf.

65

A recent survey done by THE TIMES OF INDIA

NEW DELHI: A recent consumer survey has ranked Pepsi as the

most preferred beverage brand with arch cola rival Coke trailing in

all categories except one.

In the overall beverage segment, Pepsi topped the chart with 23 per

cent aggregate preference in terms of brand association while Coke

was ranked second with 20 per cent, 'Indicus Consumer Tracker'

research showed.

Pepsi was ranked first in the brand recall survey of the top 200

individual brands in the country with five per cent aggregate

preference while Coke lagged behind at the ninth position with

three percentage points.

Across vehicle ownership, luxury car owners preferred Pepsi rather

than Coke but mid-size car owners liked Coke over Pepsi.

Small car, motorcycle and scooter owners in India showed their

penchant for Pepsi.

In the eight big cities in India, Pepsi topped the list with reference

to brand recall with five per cent while Coke was adjudged at the

ninth slot with three per cent.

65

Among students, Pepsi was more popular with seven per cent

brand recall value while Coke trailed at the 15th position having

two per cent brand recall value in the list of top 20 brands.

Among young adults (19 to 20 years of age), Pepsi enjoyed the first

position with six per cent and Coke stood at the 12th slot with two

percent.

In terms of brand recall value among teenagers, Pepsi was ranked

first with eight per cent.

In the list of top 10 popular brands among females, Pepsi ranked

second with five per cent while Coke grabbed the 13th slot with

two per cent.

Among males, Pepsi topped the chart with six per cent and Coke

ranked ninth with three per cent.

Across the country, Pepsi was ahead of Coke at the first position

with five per cent while Coke came ninth with three per cent.

"The choice of 'generation next' is the choice of all generations

curently. Pepsi comes out as the most top of mind recalled brand of

all. It also tops on ad recall. Asia Cup? Toss Ka Boss? It all seems

to be working. Pesticides, what's that!" the survey said.

'Indicus Consumer Tracker' , a monthly series, used a sample of

4,000 responses for the survey.

65

Suggestions & Recommendations

This research was particularly carried for only knowing the brand

name in the soft drink market of Mumbai having the maximum

market Potency which is Thums Up.

It is suggested to Pepsico in Mumbai that it holds the third position

in the research of market potency, which Pepsi brand holds. It is

noticeable that the first positions are held by the competitors Coke.

The company Pepsico should increase their marketing efforts.

65

Limitations of the Study

Though best efforts have been made to make the study fair,

transparent, error free, there might be some inevitable and inherent

limitations. Though I tried my level best to make this report most

accurate, some of the limitations are as follows:

This study is valid for Mumbai city only.

There may be some biased response.

Some of the customers didn't provide full data.

Most of the customers were too busy to meet.

65

Conclusion

Soft drink market whether on micro or macro scale, it is vast and

full with great opportunities. It is one of the industries which is not

adversely affected by the recession process. Demand for soft drink

is still at large, which is resulting in the launch of new and more

soft drink variants.

Due to which also the companies are adopting aggressive market

strategies. Although consumers are going for and liking every soft

drink brand but definitely some brands have more value and

demand in the market than compared to others. This research was

carried out for knowing the brand having maximum market

potency, which is Thums Up hence objective achieved.

“Pepsi is bigger than Coke as a brand, but Coke as a company has

very smartly introduced other brands that have done very well.”

At the end of this report we can clearly conclude that Coke had

been greatly got success in the local Mumbai market of soft drinks

as the first two positions of maximum potency Brands are held by

Thums Up (22%) and Coca cola (16%).

65

This tells us that coke’s marketing strategy is far more clear cut

and accurate than its competitors Pepsico, Coke is very well

understanding the mind of the local Mumbai Consumer’s, which is

making coke and its other brands more preferred and desired by the

consumers in Mumbai market than compared to Pepsico’s Brands.

65

Annexure

Name :……………………………………… Age :………………..

Address :…………………………………...

Mob. No :……………………………..........

Occupation :……………………………....

E-mail :…………………………………...

1: Excellent 2: Good 3: Average 4: Satisfactory 5: Bad

Questn 1: Which soft drink do you drink the most ? ___________

Questn 2: You choose your soft drink on what basis ?

Brand wise () Taste wise ()

Questn 3: How early and fast can you recall the following brands first? (rate

from 1 to 5 for each)

Pepsi

( )

Coke

( )

Thumbs Up

( )

Miranda

( )

Slice

( )

Maaza

( )

Mountain Dew

( )

Sprite

( )

7 UP

( )

Fanta

( )

65

Questn 4: Priority wise tell that which brand will you repurchase again ? (rate

from 1 to 5 for each)

Pepsi

( )

Coke

( )

Thumbs Up

( )

Miranda

( )

Slice

( )

Maaza

( )

Mountain Dew

( )

Sprite

( )

7 UP

( )

Fanta

( )

Questn 5: Do you get attracted or feel motivated towards the following brands

for the purpose of use ?

Pepsi

( )

Coke

( )

Thumbs Up

( )

Miranda

( )

Slice

( )

Maaza

( )

Mountain Dew

( )

Sprite

( )

7 UP

( )

Fanta

( )

65

Questn 6: Are you aware of the company names of these brands ? (rate from 1

to 5 for each)

Pepsi

( )

Coke

( )

Thumbs Up

( )

Miranda

( )

Slice

( )

Maaza

( )

Mountain Dew

( )

Sprite

( )

7 UP

( )

Fanta

( )

Questn 7: Do you feel that the following brand names justify their name with

their purpose ?

Pepsi

( )

Coke

( )

Thumbs Up

( )

Miranda

( )

Slice

( )

Maaza

( )

Mountain Dew

( )

Sprite

( )

7 UP

( )

Fanta

( )

65

BIBLIOGRAPHY

Websites -

www.google.com

www.pepsicoindia.co.in

www.pepsico.com

Books -

Special Study in Marketing - Romeo Mascarenhas

Service Sector Management- Romeo Mascarenhas

Newspaper -

Times of India