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PROJECT REPORT

ON

MARKET SHARE OF PEPSI

SUBMITTED TO:Himachal Pardesh University, Shimla

Submitted In Partial Fulfilment Of The Requirements

For The Award Of Degree Of

Masters Of Business Administration

SUBMITTED BY :

Vikas Sharma

MBA (Mrt.&Finc.) 2008-2010

INDUSTRY GUIDE: FACULTY GUIDE:

Mr.Anuj Mahajan Mr.Rajnish(Market Development Manager)

(SESSION 2008-2010)HIMALAYAN INSTITUTE OF MANAGEMENT

KALA-AMB, SIRMOUR, HIMACHAL PARDESH

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TABLE OF CONTENTS

CHAPTER NO.CONTENTS

PAGE NO.

PREFACE

ACKNOWLEDGEMENT

EXECUTIVE SUMMARY

1. INTRODUCTION 6

2. RESEARCH OBJECTIVES 40

3. RESEARCH METHODOLOGY AND

LIMITATIONS OF STUDY

41

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PREFACE

Some one has rightly said that practical knowledge is far better

than classroom teaching. During this project, I came to know the difficulties face during

the Work. Master in business administration imparts the students with such virtues andprepares to take business world in their stride. This project gives the considerable exposure

to the students and provides them with opportunity to see the practical aspects of the

working of the corporate world.

In order to use theoretical knowledge,I got the opportunity of doing Industrial

training from JAI BEVERAGESJAMMU.Which holds the sole rights for the production of

popular beverage brand PEPSICO in the state of J&K.

This report contains first of all brief introduction regarding the topic of my

research i.e. MARKET SHARE REPORT OF PEPSI. Finally there comes research

methodology data analysis and interpretation in the end of my report. Without practical

knowledge, management is meaningless so long with the theory; Practical knowledge is

provided to management students through market survey.

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ACKNOWLEDGEMENT

No project work is carried out in vacuum. Project work

is never the work of an individual. Many persons contributed to the development of my project

report. Everyone was with their ideas, suggestions & contributions that really helped me in

making an easy, clear, limpid and systematic project report. First of all I express my regards to my

family who are always there to support and encourage me. They provided a congenial atmosphere

for my work. I could not have accomplished all that was expected without that special patience

and understanding that only a family can give. At Himalayan Institute Kala-amb. I want to thank

all the faculty of Management Department, who are always there to support and encourage the

students. A heart felt thank is extended to Mr.Anuj Mahajan (Marketing Development Officer) for

having guided me in my project. Last but not the least, I want to thank Sales executives, all the

Market Developers, distributors and retailers who had helped me in covering the market.

Vikas Sharma

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EXECUTIVE SUMMARY

The project was undertaken to study the market share of Pepsi in JAMMU area. The population

consists of all those retailers in the defined area who stock and sell relevant brands of cold drinks

Coca Cola and Pepsi.

With a view to find the market share of Pepsi in JAMMU area and to determine the most

dominating flavour of cold drinks in Jammu area, we interviewed the retailers.

The research study shows that the share of Pepsi is 43 percent as compared to that of Coke The

study revealed that Pepsi is able to sustain the tough competition from Coke.

In order to sustain in such a competitive market it is imperative for PEPSI to invest substantially

in advertisements, sales promotion and packaging.

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IntroductionPepsi is one of the world's most famous brands much like its rival Coca Cola. Pepsi Cola was

originally called Brad's Drink after its creator, Caleb Bradham, a pharmacist from North Carolina.

Pepsi was a carbonated soft drink he created to serve his drugstore's customers. The new name,

Pepsi-Cola, was first used on August 28. The Pepsi logo is a simple globe with the Pepsi colors in

the background and the word Pepsi in the foreground. Pepsi has changed its logo and its slogans a

number of times since its introduction in 1898. The Pepsi slogans through the years are listed

below

1909-1939: Delicious and Healthful 1939-1950: Twice As Much For A Nickel Too 1950-1963: The Light Refreshment 1953-1961: Be Sociable 1961-1963: Now It's Pepsi For Those Who Think Young 1963-1967: Come Alive! You're In The Pepsi Generation 1967-1969: Taste That Beats The Others Cold 1969-1973: You've Got A Lot To Live, Pepsi's Got A Lot To Give 1973-1975: Join The Pepsi People Feelin' Free 1975-1978: Have A Pepsi Day 1978-1981: Catch That Pepsi Spirit 1981-1982: Pepsi's Got Your Taste For Life! 1983-1983: Pepsi Now! 1984-now: Pepsi, The Choice Of A New Generation

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Company Perspectives:

PepsiCo's overall mission is to increase the value of our shareholder's investment. We do this

through sales growth, cost controls and wise investment of resources. We believe our commercial

success depends upon offering quality and value to our consumers and customers; providingproducts that are safe, wholesome, economically efficient and environmentally sound; and

providing a fair return to our investors while adhering to the highest standards of integrity.

Key Dates:

1898: Pharmacist Caleb D. Bradham begins selling a cola beverage called Pepsi-Cola.

1905: Bradham begins establishing a network of bottling franchises.

1923: Bradham's company goes bankrupt.

1928: Roy C. Megargel reorganizes the firm as the National Pepsi-Cola Company.

1931: Company again goes bankrupt and is resurrected by the president of Loft Inc., Charles G.

Guth.

1933: The size of Pepsi bottles is doubled, increasing sales dramatically.

1936: Pepsi-Cola Company becomes a subsidiary of Loft.

1939: First national radio advertising of the Pepsi brand.

1941: Loft and Pepsi-Cola merge, the new firm using the name Pepsi-Cola Company.

1964: Diet Pepsi debuts; Mountain Dew is acquired from Tip Corporation.

1965: Pepsi-Cola merges with Frito-Lay to form PepsiCo, Inc., with the two predecessors

becoming divisions.

1967: Frito-Lay introduces Doritos tortilla chips to the national U.S. market.

1977: PepsiCo acquires Taco Bell.

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1978: PepsiCo acquires Pizza Hut.

1981: Frito-Lay introduces Tostitos tortilla chips.

1986: The Kentucky Fried Chicken (KFC) chain is acquired.

1997: Taco Bell, Pizza Hut, and KFC are spun off into a new company called Tricon GlobalRestaurants.

1998: PepsiCo acquires Tropicana Products for $3.3 billion.

1999: Pepsi Bottling Group is spun off to the public, with PepsiCo retaining a 35 percent stake.

2000: PepsiCo reaches an agreement to acquire the Quaker Oats Company for $13.4 billion.

OriginsPepsi was first made in New Bern, North Carolina , in the United States in the early 1890s by

pharmacist Caleb Bradham . In 1898, "Brad's drink" was changed to "Pepsi-Cola" and later

trademarked on June 16 , 1903. There are several theories on the origin of the word "pepsi". The

only two discussed within the current PepsiCo website are the following:

1. Caleb Bradham bought the name "Pep Kola" from a local competitor and changed it to

Pepsi-Cola.2. "Pepsi-Cola" is an anagram for "Episcopal" - a large church across the street from

Bradham's drugstore. There is a plaque at the site of the original drugstore documenting

this, though PepsiCo has denied this theory.

The word Pepsi comes from the Greek word "pepsi" (), which is a medical term, describing

the food dissolving process within one's stomach. It is also a medical term that describes a

problem with one's stomach to dissolve foods properly.

Another theory regarding the name's origins is that Caleb Bradham and his customers simply

thought the name sounded good and reflected the fact that the drink had some kind of "pep" in it

because it was a carbonated drink.

It was made of carbonated water , sugar , vanilla , rare oils , and kola nuts . Whether the original

recipe included the enzyme pepsin is disputed. [2][ 3]

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http://en.wikipedia.org/wiki/New_Bern,_North_Carolinahttp://en.wikipedia.org/wiki/Pharmacyhttp://en.wikipedia.org/wiki/Caleb_Bradhamhttp://en.wikipedia.org/wiki/June_16http://en.wikipedia.org/wiki/1903http://en.wikipedia.org/wiki/Anagramhttp://en.wikipedia.org/wiki/Carbonated_waterhttp://en.wikipedia.org/wiki/Sugarhttp://en.wikipedia.org/wiki/Vanillahttp://en.wikipedia.org/wiki/Essential_oilhttp://en.wikipedia.org/wiki/Kola_nuthttp://en.wikipedia.org/wiki/Enzymehttp://en.wikipedia.org/wiki/Pepsinhttp://en.wikipedia.org/wiki/Pepsi#cite_note-1http://en.wikipedia.org/wiki/Pepsi#cite_note-2http://en.wikipedia.org/wiki/New_Bern,_North_Carolinahttp://en.wikipedia.org/wiki/Pharmacyhttp://en.wikipedia.org/wiki/Caleb_Bradhamhttp://en.wikipedia.org/wiki/June_16http://en.wikipedia.org/wiki/1903http://en.wikipedia.org/wiki/Anagramhttp://en.wikipedia.org/wiki/Carbonated_waterhttp://en.wikipedia.org/wiki/Sugarhttp://en.wikipedia.org/wiki/Vanillahttp://en.wikipedia.org/wiki/Essential_oilhttp://en.wikipedia.org/wiki/Kola_nuthttp://en.wikipedia.org/wiki/Enzymehttp://en.wikipedia.org/wiki/Pepsinhttp://en.wikipedia.org/wiki/Pepsi#cite_note-1http://en.wikipedia.org/wiki/Pepsi#cite_note-2


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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 1924, 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 1929, the Pepsi-Cola Company went bankrupt during the Great Depression - in large part due

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 onsyrup. Guth then had Loft's chemists reformulate the Pepsi-Cola syrup formula

Rise in popularityDuring the Great Depression , Pepsi gained popularity following the introduction in 1929 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 "Pepsicola 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. Loft now owned Pepsi, and the two companies did a merger, then immediately spun

off the Loft company.

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http://en.wikipedia.org/wiki/Gallonshttp://en.wikipedia.org/wiki/Syruphttp://en.wikipedia.org/wiki/Barney_Oldfieldhttp://en.wikipedia.org/wiki/Great_Depressionhttp://en.wikipedia.org/wiki/World_War_Ihttp://en.wikipedia.org/wiki/World_War_Ihttp://en.wikipedia.org/wiki/Coca-Colahttp://en.wikipedia.org/wiki/Great_Depressionhttp://en.wikipedia.org/wiki/Ouncehttp://en.wikipedia.org/wiki/Cent_(currency)http://en.wikipedia.org/wiki/Jinglehttp://en.wikipedia.org/wiki/Nickel_(United_States_coin)http://en.wikipedia.org/wiki/Guth_v._Lofthttp://en.wikipedia.org/wiki/Guth_v._Lofthttp://en.wikipedia.org/wiki/Delaware_Supreme_Courthttp://en.wikipedia.org/wiki/Gallonshttp://en.wikipedia.org/wiki/Syruphttp://en.wikipedia.org/wiki/Barney_Oldfieldhttp://en.wikipedia.org/wiki/Great_Depressionhttp://en.wikipedia.org/wiki/World_War_Ihttp://en.wikipedia.org/wiki/World_War_Ihttp://en.wikipedia.org/wiki/Coca-Colahttp://en.wikipedia.org/wiki/Great_Depressionhttp://en.wikipedia.org/wiki/Ouncehttp://en.wikipedia.org/wiki/Cent_(currency)http://en.wikipedia.org/wiki/Jinglehttp://en.wikipedia.org/wiki/Nickel_(United_States_coin)http://en.wikipedia.org/wiki/Guth_v._Lofthttp://en.wikipedia.org/wiki/Guth_v._Lofthttp://en.wikipedia.org/wiki/Delaware_Supreme_Court


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Niche marketing

1940s advertisement specifically targeting African Americans.

Walter Mack was named the new President of Pepsi-Cola and guided the company through the

1940s. Mack, who supported progressive causes, noticed that the company's strategy of using

advertising for a general audience either ignored African Americans or used ethnic stereotypes in

portraying blacks. He realized African Americans were an untapped niche market and that Pepsi

stood to gain market share by targeting its advertising directly towards them. To this end, he hiredHennan Smith, an advertising executive "from the Negro newspaper field"to lead an all-black

sales team, which had to be cut due to the onset of World War II . In 1947, Mack resumed his

efforts, hiring Edward F. Boyd to lead a twelve-man team. They came up with advertising

portraying black Americans in a positive light, such as one with a smiling mother holding a six

pack of Pepsi while her son (a young Ron Brown , who grew up to be Secretary of Commerce )

reaches up for one. Another ad campaign , titled "Leaders in Their Fields", profiled twenty

prominent African Americans such as Nobel Peace Prize winner Ralph Bunche and photographer Gordon Parks .

Boyd also led a sales team composed entirely of blacks around the country to promote Pepsi.

Racial segregation and Jim Crow laws were still in place throughout much of the U.S., so Boyd's

team faced a great deal of discrimination as a result, from insults by Pepsi co-workers to threats by

Ku Klux Klan . On the other hand, they were able to use racism as a selling point, attacking Coke's

reluctance to hire blacks and support by the chairman of Coke to segregationist Governor of

Georgia Herman Talmadge . As a result, Pepsi's market share as compared to Coke's shot up

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http://en.wikipedia.org/wiki/Progressivismhttp://en.wikipedia.org/wiki/African_Americanhttp://en.wikipedia.org/wiki/Niche_markethttp://en.wikipedia.org/wiki/Market_sharehttp://en.wikipedia.org/wiki/World_War_IIhttp://en.wikipedia.org/wiki/Edward_F._Boydhttp://en.wikipedia.org/wiki/Six_packhttp://en.wikipedia.org/wiki/Six_packhttp://en.wikipedia.org/wiki/Ron_Brown_(U.S._politician)http://en.wikipedia.org/wiki/United_States_Secretary_of_Commercehttp://en.wikipedia.org/wiki/Ad_campaignhttp://en.wikipedia.org/wiki/Nobel_Peace_Prizehttp://en.wikipedia.org/wiki/Ralph_Bunchehttp://en.wikipedia.org/wiki/Gordon_Parkshttp://en.wikipedia.org/wiki/Racial_segregationhttp://en.wikipedia.org/wiki/Jim_Crow_lawshttp://en.wikipedia.org/wiki/Ku_Klux_Klanhttp://en.wikipedia.org/wiki/Racismhttp://en.wikipedia.org/wiki/Governor_of_Georgiahttp://en.wikipedia.org/wiki/Governor_of_Georgiahttp://en.wikipedia.org/wiki/Herman_Talmadgehttp://en.wikipedia.org/wiki/Progressivismhttp://en.wikipedia.org/wiki/African_Americanhttp://en.wikipedia.org/wiki/Niche_markethttp://en.wikipedia.org/wiki/Market_sharehttp://en.wikipedia.org/wiki/World_War_IIhttp://en.wikipedia.org/wiki/Edward_F._Boydhttp://en.wikipedia.org/wiki/Six_packhttp://en.wikipedia.org/wiki/Six_packhttp://en.wikipedia.org/wiki/Ron_Brown_(U.S._politician)http://en.wikipedia.org/wiki/United_States_Secretary_of_Commercehttp://en.wikipedia.org/wiki/Ad_campaignhttp://en.wikipedia.org/wiki/Nobel_Peace_Prizehttp://en.wikipedia.org/wiki/Ralph_Bunchehttp://en.wikipedia.org/wiki/Gordon_Parkshttp://en.wikipedia.org/wiki/Racial_segregationhttp://en.wikipedia.org/wiki/Jim_Crow_lawshttp://en.wikipedia.org/wiki/Ku_Klux_Klanhttp://en.wikipedia.org/wiki/Racismhttp://en.wikipedia.org/wiki/Governor_of_Georgiahttp://en.wikipedia.org/wiki/Governor_of_Georgiahttp://en.wikipedia.org/wiki/Herman_Talmadge


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dramatically. After the sales team visited Chicago , Pepsi's share in the city overtook that of Coke

for the first time.

This focus on the black market caused some consternation within the company and among its

affiliates. They did not want to seem focused on black customers for fear white customers would

be pushed away. In a meeting at the Waldorf-Astoria Hotel , Mack tried to assuage the 500 bottlers

in attendance by pandering to them, saying, "We don't want it to become known as the nigger

drink."After Mack left the company in 1950, support for the black sales team faded and it was cut.

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Marketing

A large advertisement made to resemble a Pepsi cup at the theme park, Nickelodeon Universe

inside the Mall of America. The first of many new designs of Pepsi cans which were released in2007.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

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."

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.

Celebrity endorsers

Like Coca-Cola, Pepsi and its associated beverages have had various celebrity endorsers andcontinue to use them.

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Slogans 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 Young, Have Fun, Drink Pepsi" 1993: "Right Now" Van Halen Song for the Crystal Pepsi Ad 1995: "Nothing Else is a Pepsi" 1996: "Pepsi:There's nothing official about it" (During the Wills World Cup(Cricket) held

in India/Pakistan/Srilanka) 1997: "GeneratioNext"." With the Spice Girls " 1998: "Yeh Dil Mange More"(In Urdu meaning "My heart wants more")(Pakistan) 1999: "Ask for More"/"The Joy of Pepsi-Cola" (Commercial with Britney

Spears /Commercial with Mary J. Blige ) 2000: "Aazadi dil ki" (India) 2003: "It's the Cola"/"Dare for More" 2005: "Wild Thing"/"Ask For More" (With Jennifer Lopez & Beyonc Knowles )

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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.

Health concernsPepsi and similar products contain large amounts of sugar. Excessive sugar intake is thought to be

a contributing factor in the development of certain types of diabetes . Sugar is also a leading

contributor to tooth decay.

Rivalry with Coca-ColaAccording 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.

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".

Comedian Dave Chappelle starred in ads for both Coca-Cola and Pepsi, an act which drew

controversy. When referring to it in his show, Chappelle said, "I can't even taste the difference: all

I know is Pepsi paid me most recently, so it tastes better."

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. Saudi Arabia ,

Pakistan (Pepsi has been a dominant sponsor of the Pakistan cricket team since the 1990s), the

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Canadian provinces of Quebec and Prince Edward Island and the U.S. states of Michigan and

South Carolina are the exceptions.

Pepsi had long been the drink of Canadian Francophones and it continues to hold its dominance by

relying on local Qubcois celebrities (especially Claude Meunier, of La Petite Vie fame) to sell

its product. "Pepsi" eventually became an offensive nickname for Francophones.

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; PepsiCobought out its partners and ended the joint venture in 1994. In 1993, The Coca-Cola 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%.

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 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 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

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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.

Rarely, though, has the Coke-Pepsi rivalry gone so far as in Thailand, where it has now led to two

deaths (source: ).

IngredientsEnergy 100.5 kJ

Fat 0 g

Sodium 0.98 mg

Carbohydrates 11.74 g

Sugar 11.04 g

Protein 0 g

Caffeine 10 mg

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

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Ups and Downs in the Early YearsDoc Bradham, like countless other entrepreneurs across the United States, was trying to create a

cola drink similar in taste to Coca-Cola, which by 1895 was selling well in every state of the

union. On August 28, 1898, at his pharmacy in New Bern, North Carolina, Bradham gave the

name Pepsi-Cola to his most popular flavored soda. Formerly known as Brad's Drink, the new

cola beverage was a syrup of sugar, vanilla, oils, cola nuts, and other flavorings diluted in

carbonated water. The enterprising pharmacist followed Coca-Cola's method of selling the

concentrate to soda fountains; he mixed the syrup in his drugstore, then shipped it in barrels to the

contracted fountain operators who added the soda water. He also bottled and sold the drink

himself.

In 1902 Doc Bradham closed his drugstore to devote his attention to the thriving new business.The next year, he patented the Pepsi-Cola trademark, ran his first advertisement in a local paper,

and moved the bottling and syrup-making operations to a custom-built factory. Almost 20,000

gallons of Pepsi-Cola syrup were produced in 1904.

Again following the successful methods of the Coca-Cola Company, Bradham began to establish a

network of bottling franchises. Entrepreneurs anxious to enter the increasingly popular soft drink

business set themselves up as bottlers and contracted with Bradham to buy his syrup and sell

nothing but Pepsi. With little cash outlay, Pepsi-Cola reached a much wider market. Bradham's

first two bottling franchises, both in North Carolina, commenced operation in 1905. By 1907,

Pepsi-Cola had signed agreements with 40 bottlers; over the next three years, the number grew to

250 and annual production of the syrup exceeded one million gallons.

Pepsi-Cola's growth continued until World War I, when sugar, then the main ingredient of all

flavored sodas, was rationed. Soft drink producers were forced to cut back until sugar rationing

ended. The wartime set price of sugar--5.5 cents per pound--rocketed after controls were lifted toas much as 26.5 cents per pound in 1920. Bradham, like his rivals, had to decide whether to halt

production and sit tight in the hope that prices would soon drop, or stockpile the precious

commodity as a precaution against even higher prices; he chose the latter course. But

unfortunately for him the market was saturated by the end of 1920 and sugar prices plunged to a

low of two cents per pound.

Bradham never recovered. After several abortive attempts to reorganize, only two of the bottling

plants remained open. In a last ditch effort, he enlisted the help of Roy C. Megargel, a Wall Street

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investment banker. Very few people, however, were willing to invest in the business and it went

bankrupt in 1923. The assets were sold and Megargel purchased the company trademark, giving

him the rights to the Pepsi-Cola formula. Doc Bradham went back to his drug dispensary and died

11 years later.

Megargel reorganized the firm as the National Pepsi-Cola Company in 1928, but after three years

of continuous losses he had to declare bankruptcy. That same year, 1931, Megargel met Charles

G. Guth, a somewhat autocratic businessman who had recently taken over as president of Loft

Inc., a New York-based candy and fountain store concern. Guth had fallen out with Coca-Cola for

refusing the company a wholesaler discount and he was on the lookout for a new soft drink. He

signed an agreement with Megargel to resurrect the Pepsi-Cola company, and acquired 80 percent

of the new shares, ostensibly for himself. Then, having modified the syrup formula, he canceled

Loft's contract with Coca-Cola and introduced Pepsi-Cola, whose name was often shortened toPepsi.

Loft's customers were wary of the brand switch and in the first year of Pepsi sales the company's

soft drink turnover was down by a third. By the end of 1933, Guth bought out Megargel and

owned 91 percent of the insolvent company. Resistance to Pepsi in the Loft stores tailed off in

1934, and Guth decided to further improve sales by offering 12-ounce bottles of Pepsi for a

nickel--the same price as six ounces of Coke. The Depression-weary people of Baltimore--where

the 12-ounce bottles were first introduced--were ready for a bargain and Pepsi-Cola sales

increased dramatically.

Guth soon took steps to internationalize Pepsi-Cola, establishing the Pepsi-Cola Company of

Canada in 1934 and in the following year forming Compania Pepsi-Cola de Cuba. He also moved

the entire American operation to Long Island City, New York, and set up national territorial

boundaries for the bottling franchises. In 1936, Pepsi-Cola Ltd. of London commenced business.

Guth's ownership of the Pepsi-Cola Company was challenged that same year by Loft Inc. In a

complex arrangement, Guth had organized Pepsi-Cola as an independent corporation, but he had

run it with Loft's employees and money. After three years of litigation, the court upheld Loft's

contention and Guth had to step down, although he was retained as an adviser. James W. Carkner

was elected president of the company, now a subsidiary of Loft Inc., but Carkner was soon

replaced by Walter S. Mack, Jr., an executive from the Phoenix Securities Corporation.

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Mack established a board of directors with real voting powers to ensure that no one person would

be able to wield control as Guth had done. From the start, Mack's aim was to promote Pepsi to the

hilt so that it might replace Coca-Cola as the world's best-selling soft drink. The advertising

agency Mack hired worked wonders. In 1939, a Pepsi radio jingle--the first one to be aired

nationally--caught the public's attention: '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.' The jingle, sung to the tune of

the old British hunting song 'D'Ye Ken John Peel,' became an advertising hallmark; no one was

more impressed, or concerned, than the executives at Coca-Cola.

In 1940, with foreign expansion continuing strongly, Loft Inc. made plans to merge with its Pepsi-

Cola subsidiary. The new firm, formed in 1941, used the name Pepsi-Cola Company since it was

so well-known. Pepsi's stock was listed on the New York Stock Exchange for the first time.

Sugar rationing was even more severe during World War II, but this time the company fared

better; indeed, the sugar plantation Pepsi-Cola acquired in Cuba became a most successful

investment. But as inflation spiraled in the postwar U.S. economy, sales of soft drinks fell. The

public needed time to get used to paying six or seven cents for a bottle of Pepsi which, as they

remembered from the jingle, had always been a nickel. Profits in 1948 were down $3.6 million

from the year before.

In other respects, 1948 was a notable year. Pepsi moved its corporate headquarters across the East

River to midtown Manhattan, and for the first time the drink was sold in cans. The decision to start

canning, while absolutely right for Pepsi-Cola and other soft drink companies upset the franchised

bottlers, who had invested heavily in equipment. However, another decision at Pepsi-

Cola&mdash ignore the burgeoning vending machine market because of the necessarily large

capital outlay&mdashoved to be a costly mistake. The company had to learn the hard way that as

canned drinks gained a larger share of the market, vending machine sales would become

increasingly important .

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1950s: The Steele and Crawford EraWalter Mack was appointed company chairman in 1950, and a former Coca-Cola vice-president of

sales, Alfred N. Steele, took over as president and chief executive officer, bringing 15 other Coke

executives with him. Steele continued the policy of management decentralization by giving

broader powers to regional vice-presidents, and he placed Herbert Barnet in charge of Pepsi's

financial operations. Steele's outstanding contribution, however, was in marketing. He launched an

extensive advertising campaign with the slogan 'Be Sociable, Have a Pepsi.' The new television

medium provided a perfect forum; Pepsi advertisements presented young Americans drinking 'The

Light Refreshment' and having fun.

By the time Alfred Steele married movie star Joan Crawford in 1954, a transformation of the

company was well underway. Crawford's adopted daughter, Christina, noted in her best-seller

Mommie Dearest: '[Steele had] driven Pepsi into national prominence and distribution, second

only to his former employer, Coca-Cola. Pepsi was giving Coke a run for its money in every nook

and hamlet of America. Al Steele welded a national network of bottlers together, standardized the

syrup formula ..., brought the distinctive logo into mass consciousness, and was on the brink of

going international.' In fact, Pepsi-Cola International Ltd. was formed shortly after Steele's

marriage.

Joan Crawford became the personification of Pepsi's new and glamorous image. She invariably

kept a bottle of Pepsi at hand during press conferences and mentioned the product at interviews

and on talk shows; on occasion she even arranged for Pepsi trucks and vending machines to

feature in background shots of her movies. The actress also worked hard to spread the Pepsi word

overseas and accompanied her husband, now chairman of the board, on his 1957 tour of Europe

and Africa, where bottling plants were being established.

Steele died suddenly of a heart attack in the spring of 1959. Herbert Barnet succeeded him as

chairman and Joan Crawford was elected a board member. Pepsi-Cola profits had fallen to a

postwar low of $1.3 million in 1950 when Steele joined the company, but with the proliferation of

supermarkets during the decade and the developments in overseas business, profits reached $14.2

million in 1960. By that time, young adults had become a major target of soft drink manufacturers

and Pepsi's advertisements were aimed at 'Those who think young.'

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Al Steele and Joan Crawford had been superb cheerleaders, but a stunt pulled in 1959 by Donald

M. Kendall, head of Pepsi-Cola International, is still regarded as one of the great coups in the

annals of advertising. Kendall attended the Moscow Trade Fair that year and persuaded U.S. Vice-

President Richard Nixon to stop by the Pepsi booth with Nikita Khrushchev, the Soviet premier.

As the cameras flashed, Khrushchev quenched his thirst with Pepsi and the grinning U.S. Vice-

President stood in attendance. The next day, newspapers around the world featured photographs of

the happy couple, complete with Pepsi bottle.

1960s and 1970s: The Pepsi Generation,Diversification By 1963, Kendall was presiding over the Pepsi empire. His rise to the top of the company was

legendary. He had been an amateur boxing champion in his youth and joined the company as a

production line worker in 1947 after a stint in the U.S. Navy. He was later promoted to syrup sales

where it quickly became apparent that he was destined for higher office. Ever pugnacious, Kendall

has been described as abrasive and ruthlessly ambitious; beleaguered Pepsi executives secretly

referred to him as White Fang. Under his long reign, the company's fortunes skyrocketed.

Pepsi-Cola's remarkable successes in the 1960s and 1970s were the result of five distinct policies,

all of which Kendall and his crew pursued diligently: advertising on a massive, unprecedentedscale; introducing new brands of soft drinks; leading the industry in packaging innovations;

expanding overseas; and, through acquisitions, diversifying their product line.

The postwar baby-boomers were in their mid- to late teens by the time Kendall came to power.

'Pepsi was there,' states a recent company flyer, 'to claim these kids for our own.' These 'kids'

became the 'Pepsi Generation.' In the late 1960s Pepsi was the 'Taste that beats the others cold.'

Viewers were advised 'You've got a lot to live. Pepsi's got a lot to give.' By the early 1970s, the

appeal was to 'Join the Pepsi people, feelin' free.' In mid-decade an American catchphrase was

given a company twist with 'Have a Pepsi Day,' and the 1970s ended on the note 'Catch the Pepsi

Spirit!'

The Pepsi Generation wanted variety and Pepsi was happy to oblige. Company brands introduced

in the 1960s included Patio soft drinks, Teem, Tropic Surf, Diet Pepsi--the first nationally

distributed diet soda, introduced in 1964--and Mountain Dew, acquired from the Tip Corporation,

also in 1964. Pepsi Light, a diet cola with a hint of lemon, made its debut in 1975, and a few yearslater Pepsi tested the market with Aspen apple soda and On-Tap root beer. The company also

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introduced greater variety into the packaging of its products. Soon after Kendall's accession, the

12-ounce bottle was phased out in favor of the 16-ounce size, and in the 1970s Pepsi-Cola became

the first American company to introduce one-and-a-half and two-liter bottles; it also began to

package its sodas in sturdy, lightweight plastic bottles. By the end of the decade, Pepsi had added

12-pack cans to its growing array of packaging options.

The company's expansion beyond the soft drink market began in 1965 when Kendall met Herman

Lay, the owner of Frito-Lay, at a grocer's convention. Kendall arranged a merger with this Dallas-

based snack food manufacturer and formed PepsiCo, Inc. Herman Lay retired soon thereafter but

retained his substantial PepsiCo shareholding. The value of this stock increased dramatically as

Frito-Lay products were introduced to Pepsi's nationwide market. At the time of the merger, key

Frito-Lay brands included Fritos corn chips (created in 1932), Lay's potato chips (1938), Chee-tos

cheese-flavored snacks (1948), Ruffles potato chips (1958), and Rold Gold pretzels (acquired byFrito-Lay in 1961). Doritos tortilla chips were introduced nationally in 1967. The addition of

Frito-Lay helped PepsiCo achieve $1 billion in sales for the first time in 1970. That same year, the

corporation moved into its new world headquarters in Purchase, New York.

During the 1970s, Kendall acquired two well-known fast-food restaurant chains, Taco Bell, in

1977, and Pizza Hut, in 1978; naturally, these new subsidiaries became major outlets for Pepsi

products. But Kendall also diversified outside the food and drink industry, bringing North

American Van Lines (acquired in 1968), Lee Way Motor Freight, and Wilson Sporting Goods into

the PepsiCo empire.

Overseas developments continued apace throughout Kendall's tenure. Building on his famous

Soviet achievement, he negotiated a trade agreement with the U.S.S.R. in 1972; the first Pepsi

plant opened there two years later. Gains were also made in the Middle East and Latin America,

but Coca-Cola, the major rival, retained its dominant position in Europe and throughout much of

Asia.

1980s Highlighted by the Cola Wars By the time PepsiCo greeted the 1980s with the slogan 'Pepsi's got your taste for life!,' Kendall

was busy arranging for China to get that taste too; production began there in 1983. Kendall put his

seal of approval on several other major developments in the early 1980s, including the

introduction of Pepsi Free, a non-caffeine cola, and Slice, the first widely distributed soft drink to

contain real fruit juice (lemon and lime). The latter drink was aimed at the growing 7-Up and

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Sprite market. Additionally, Diet Pepsi was reformulated using a blend of saccharin and aspartame

(NutraSweet). 'Pepsi Now!' was the cry of company commercials, and this was interspersed with

'Taste, Improved by Diet Pepsi.' On the Frito-Lay side, meantime, the Tostitos brand of crispy

round tortilla chips was introduced in 1981.

In 1983 the company claimed a significant share of the fast-food soft drink market when Burger

King began selling Pepsi products. A year later, mindful of the industry axiom that there is

virtually no limit to the amount a consumer will buy once the decision to buy has been made,

PepsiCo introduced the 3-liter container.

By the mid-1980s, the Pepsi Generation was over the hill. Kendall's ad agency spared no expense

in heralding Pepsi as 'The Choice of a New Generation,' using the talents of superstar Michael

Jackson, singer Lionel Richie, and the Puerto Rican teenage group Menudo. Michael Jackson's adswere smash hits and enjoyed the highest exposure of any American television commercial to date.

The company's high profile and powerful presence in all of the soft drink markets--direct results of

Kendall's strategies--helped it to weather the somewhat uncertain economic situation of the time.

On only one front had Kendall's efforts failed to produce satisfactory results. Experience showed

that for all its expertise, PepsiCo simply did not have the managerial experience required to run its

subsidiaries outside the food and drink industries. A van line, a motor freight concern, and a

sporting goods firm were indeed odd companies for a soft drink enterprise; and Kendall auctioned

off these strange and ailing bedfellows, vowing never again to go courting in unfamiliar territories.

With his house in excellent order, the PepsiCo mogul began to prepare for his retirement. He had

bullied and cajoled a generation of Pepsi executives and guided them ever upward on the steep

slopes of Pepsi profits. But he had one last task: to lead PepsiCo to victory in the Cola Wars.

Hostilities commenced soon after the Coca-Cola Company changed its syrup recipe in the summer

of 1985 and with much fanfare introduced New Coke. Pepsi, caught napping, claimed that Coca-

Cola's reformulated drink failed to meet with consumer approval and pointed to their own

flourishing sales. But serious fans of the oriPepsil Coke were not about to switch to Pepsi and

demanded that their favorite refreshment be restored. When blindfolded, however, it became

manifestly apparent that these diehards could rarely tell the difference between Old Coke, New

Coke, and Pepsi; indeed, more often than not, they got it wrong. In any event, the Coca-Cola

Company acceded to the public clamor for the oriPepsil Coke and remarketed it as Coca-Cola

Classic alongside its new cola.

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Some advertising analysts believed that the entire 'conflict' was a clever publicity ploy on the part

of Coca-Cola to demonstrate the preeminence of its oriPepsil concoction ('It's the Real Thing!'),

while introducing a new cola--allegedly a Pepsi taste-alike&mdash win the hearts of waverers.

More interesting perhaps than the possible differences between the colas were the very real

differences in people's reactions. Four discrete fields were identified by Roger Enrico and Jesse

Kornbluth in their book, The Other Guy Blinked: How Pepsi Won the Cola Wars: the totally

wowed (possibly caffeine-induced); the rather amused; the slightly irritated; and the distinctly

bored.

The latter group must have nodded off in front of their television sets when Pepsi took the Cola

Wars beyond the firmament. 'One Giant Sip for Mankind,' proclaimed the ads as a Pepsi 'space

can' was opened up aboard the U.S. space shuttle Challenger in 1985. Presumably, had a regular

can been used, Pepsi-Cola would have sloshed aimlessly around the gravity-free cabin. Thisscientific breakthrough, together with the almost obligatory hype and hoopla, and more mundane

factors such as the continued expansion in PepsiCo's outlets, boosted sales to new heights, and

Pepsi's ad agency glittered with accolades. The debate persisted, at least within Coke and Pepsi

corporate offices, as to who won the Cola Wars. The answer appeared to be that there were no

losers, only winners; but skirmishes would inevitably continue.

Late 1980s and Early 1990s: Focusing onInternational Growth and Diversification D. Wayne Calloway replaced Donald M. Kendall as chairman and chief executive officer in 1986.

Calloway had been instrumental in the success of Frito-Lay, helping it to become PepsiCo's most

profitable division. The new chairman realized that his flagship Pepsi brand was not likely to win

additional market share from Coca-Cola, and focused his efforts on international growth and

diversification.

Calloway hoped to build on the phenomenal success of the Slice line of fruit juice beverages,

which achieved $1 billion in sales and created a new beverage category within just two years of its

1984 introduction. From 1985 to 1993, PepsiCo introduced, acquired, or formed joint ventures to

distribute nine beverages, including Lipton OriPepsil Iced Teas, Ocean Spray juices, All Sport

drink, H2Oh! sparkling water, Avalon bottled water, and Mug root beer. Many of these products

had a 'New Age' light and healthy positioning, in line with consumer tastes, and higher net prices.

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In 1992, PepsiCo introduced Crystal Pepsi, a clear cola that, while still a traditional soda, also

tried to capture the momentum of the 'New Age' beverage trend.

In the restaurant segment, PepsiCo's 1986 purchase of Kentucky Fried Chicken (KFC) and 1990

acquisition of the Hot 'n Now hamburger chain continued its emphasis on value-priced fast foods.

But the company strayed slightly from that formula with the 1992 and 1993 purchases of such

full-service restaurants as California Pizza Kitchen, which specialized in creative wood-fired

pizzas, Chevys, a Mexican-style chain, East Side Mario's Italian-style offerings, and D'Angelo

Sandwich Shops.

Pepsi lost a powerful marketing tool in 1992, when Michael Jackson was accused of child

molestation. Although the case was settled out of court, Pepsi dropped its contract with the

entertainer. The firm launched its largest promotion ever in May 1992 with the 'Gotta Have It'card, which offered discounts on the products of marketing partners Reebok sporting goods,

Continental Airlines, and the MCI telephone long distance company. The company also launched

a new marketing (or, as the company phrased it, 'product quality') initiative early in 1994, when it

announced that packaged carbonated soft drink products sold in the United States would

voluntarily be marked with a 'Best if Consumed By' date.

Although Pepsi had commenced international expansion during the 1950s, it had long trailed

Coca-Cola's dramatic and overwhelming conquest of international markets. In 1990, CEO

Calloway pledged up to $1 billion for overseas development, with the goal of increasing

international volume 150 percent by 1995. At that time, Coke held 50 percent of the European soft

drink market, while Pepsi claimed a meager ten percent. But Pepsi's advantage was that it could

compete in other, less saturated segments. The company's biggest challenge to expanding its

restaurant division was affordability. PepsiCo noted that, while it took the average U.S. worker

just 15 minutes to earn enough to enjoy a meal in one of the firm's restaurants, it would take an

Australian 25 minutes to achieve a similar goal. Pepsi still had other options, however. In 1992,for example, the company forged a joint venture with General Mills called Snack Ventures Europe

which emerged as the largest firm in the $17 billion market. By 1993, PepsiCo had invested over

$5 billion in international businesses, and its international sales comprised 27 percent, or $6.71

billion, of total annual sales.

In January 1992, Calloway was credited by Business Week magazine with emerging from the long

shadow cast by his predecessor 'to put together five impressive years of 20 percent compound

earnings growth, doubling sales and nearly tripling the company's value on the stock market.'

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billion. PepsiCo entered into talks with Quaker about acquiring the company for about $14 billion

in stock, but by early November the two sides had failed to reach an agreement. Coca-Cola and

Groupe Danone quickly came forward to discuss acquiring Quaker. Coke came exceedingly close

to signing a $15.75 billion takeover agreement, but the company's board pulled the plug on the

deal at the last minute. Danone soon bowed out as well. At that point, PepsiCo reentered the

picture, and in early December the firm announced that it agreed to acquire Quaker Oats for $13.4

billion in stock. This appeared to be quite a coup for PepsiCo as it would not only bring on board

the valuable Gatorade brand and make PepsiCo the clear leader in the fast-growing noncarbonated

beverage category, it would also add Quaker's small but growing snack business, which included

granola and other bars as well as rice cakes. Quaker's non-snack food brands--which included the

flagship Quaker oatmeal, Life and Cap'n Crunch cereals, Rice a Roni, and Aunt Jemima syrup--

did not fit as neatly into the PepsiCo portfolio but were highly profitable and could eventually be

divested if desired. In conjunction with the acquisition announcement, Enrico said that upon

completion of the merger, he and the head of Quaker, Robert S. Morrison, would become vice-

chairmen of PepsiCo, Morrison would also remain chairman, president, and CEO of Quaker, and

Reinemund would become chairman and CEO of PepsiCo, thereby accelerating the management

transition. At that same time, PepsiCo's CFO, Indra Nooyi, who was the highest ranking Indian-

born woman in corporate America, would become president and CFO. It seemed likely that this

new management team would take PepsiCo to new heights in the early 21st century and that the

company would continue to be a more and more formidable challenger to arch-rival Coca-Cola.

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ORGANIZATION CHART

VICEPRESIDENT

GENERAL

MANAGER

MARKETING BRANDTERRITORY DEVELOPMENT

MANAGER MANAGER

MANAGER (TDM)

MARKETING

EXECUTIVE

MARKETING

EXECUTIVE

AREA

DEVELOPMENT

CORDINATOR

(ADC)

AREA

DEVELOPMENT

CORDINATOR

(ADC)

CUSTOMER

EXECUTIVES

CUSTOMER

EXECUTIVES

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MARKETING MIX OF PEPSI:-

1). PRODUCT :-

PEPSI.

7UP.MOUNTAIN DEW.

MIRINDA (ORANGE).

MIRINDA (LEMON).

SLICE.

AQUAFINA.

LEHAR SODA.

2). PACKAGING AVAILABLE:-

1.5 LITRE (PET).

1.2 LITRE (PET).

I LITRE (PET).

500 ML (PET).

330 ML CAN.

300 ML (RGB).

250 ML (RGB).

200 ML (RGB).

TETRA PACK (ONLY SLICE).

3). PRICE:-

Price is governed by many factors like cost, Govt. Excise, Sales Tax and Market. Here priceis at with the competitors.

4). PROMOTION :-

Promotion is the aspect of selling and advertising or communicating the benefit of the

product or service. To the consumers, as the market segment involved in order to persuade

them to purchase such product or service.

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RESEARCH OBJECTIVES To find the market share of Pepsi

To increase market share the of Pepsi on the other brands in Kathua (J&K)

To determine the most dominating flavour of Pepsi in the market.

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RESEARCH METHODOLOGY

POPULATION The population consists of all those retailers in the defined area who stock and sell all

relevant brands of cold drinks i.e. Pepsi & Coke .

POPULATION ELEMENT QUALIFYINGThe population element to be chosen for the research must satisfy the following

The outlet must be in the territory of Main Bazar Kathua

The retailer must be in the business of stocking and selling the relevant

brands of cold drinks.

They must be in the above business for at least last three years.

The total turnover of the outlet must be at least Rs.5, 000 per month.

POPULATION ELEMENTIt is the unit of study of research. All those retailers, which qualify for the

above criteria and being covered in the survey, form population element.

TOTAL NUMBER OF RETAILERS

The total number of retailers in Main Bazar Kathua is about 220 amongst which nearly 200 is the

qualifying population element.

DATA COLLECTION TOOLS

The research was carried out by preparing a questionnaire. The questionnaire comprised of eightquestions with a suitable combination of rating and ranking scale questions. The questionnaire was

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also comprised multiple choice, open-ended questions, close ended questions and importance level

questions.

The reason to choose the instrument was that the survey was proposed towards the retailers of the

cold drinks. Most of them are illiterate or less educated. The instrument helped us to easily convey

the message and was also convenient while travelling in the field.

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Limitations while carrying out the project

The Pepsi has a market share of 40% but it cannot be revealed from the research weather it

has eaten up the market of Coke and other or created a different Niche for itself.

In the present context one cannot say whether in the absence of Pepsi the customer might

have shifted to either Coke or another brand.

The standard deviation of the growth rate of Population elements is very high because

there is a huge variation in the sales of different retail outlets. Some of the outlets specially

in remote region even show negative growth.

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