Consumer Buying Behaviour Towards Areated Drinks With a Comparative Analysis Between Pepsi & Coke
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CONSUMER BUYING BEHAVIOUR TOWARDS AREATED DRINKS WITH A COMPARATIVE ANALYSIS BETWEEN PEPSI & COKE VS.
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Transcript of Consumer Buying Behaviour Towards Areated Drinks With a Comparative Analysis Between Pepsi & Coke
CONSUMER BUYING BEHAVIOUR TOWARDS AREATED DRINKS WITH A COMPARATIVE
ANALYSIS BETWEEN PEPSI & COKE
VS.
ACKNOLWEDGEMENTACKNOLWEDGEMENT
A Confession !
This might seem to be a strange way to begin, But then I hate using the first
person, Nearly everything that I have done till date has been accomplished with
other people, yet when you compile a report like this you are forced to use the
narrative “I” when its really the “we” that counts. So please remember that every
time you see the word “I”, in the following pages, it refers to all those who have
helped me in reaching…
For all that I am today and everything I might be Proud of tomorrow my parents
are responsible…
I am also grateful to all my friends, seniors and colleagues.
Lastly I would like to thank the Almighty for his love and blessings which make
my clock tick.
TABLE OF CONTENTSTABLE OF CONTENTS
1. EXECUTIVE SUMMARY 1
2. RESEARCH OBJECTIVE 2
3. RESEARCH METHODOLOGY 3
4. SOFT DRINK INDUSTRY AN OVERVIEW 4-22 (a) Background 4-6 (b) Market characteristics 7-8(c) Segmentation 9 (d) Retailers perception 10 (e) Consumer habits 11 (f) Major players and market shares 12-13 (g) Market size and Growth 14
(h) Manufacturing process 15 (i) Distribution network 16-17 (j) Pricing 18
(k) Advertising 19-21(l) SWOT analysis of the Areated drink industry in India 22
5. PEPSI MISSION STATEMENT 23
6. OVERVIEW 24-76(a) Introduction 24(b) PepsiCo Headquarters 25(c) Corporate Citizenship 25(d) Pepsi-Cola North America & PepsiCo beverages International 26-27(e) Frito Lay North America & International 28(f) Gatorade\Tropicana North America 29(g) Quaker Foods North America 30(h) PepsiCo Products 31-32(i) Down the memory lane "History & Advertising highlights" 33-68(j) PepsiCo environmental commitment 69(k) Channel Management 70(l) Selling Process 70(m) Empo
werment 71(n) Manufacturing Process 71-74(o) Packaging 74-75(p) Pricing 76
7. COMPANY PROFILE "RKJ GROUP" 77-78
8. GRAPHICAL PRESENTATION & ANALYSIS 79-110
9.CONCLUSION 111-112
10. BIBLIOGRAPHY 113
11. ENCLOSURES TO THE REPORT.
EXECUTIVE SUMMARYEXECUTIVE SUMMARY
This maiden effort is an attempt to introduce the reader to the factors that govern
the Areated drink Industry.
The first part tries to give the reader an overview of the Areated Drink Industry
with a brief SWOT Analysis.
The second part introduces the reader to the World of Pepsi (History, Present
and Future) and the Chief Bottler the R.J.K. Group.
In the third part I have tried to provide practical alternate solutions for Sales and
Market Expansion of Pepsi after analyzing the Research Findings.
REASEARCH OBJECTIVESREASEARCH OBJECTIVES
General Objective:
To get a practical dimension of the various theories and management
principles imparted to me in college.
To get a feel of the corporate jungle in order to enhance my vision and
career opportunities.
Core Objective:
To assess the consumer buying behaviour of the targeted audience with
respect to areated drinks.
To assess the awareness level of the target audience with respect to pricing
and promotional schemes of various brands in Noida region.
RESEARCH METHODOLOGYRESEARCH METHODOLOGY
Data sources: the data was collected from both primary sources and secondary
sources.
The primary source of information was collected through survey of 200 people in
the entire Noida City.
The required secondary data was collected from, newspapers, magazines, and
pamphlets, trade journals, Information Brochures.
The data capturing instrument (DCI) used to collect primary data was the
Questionnaire.
The DCI consisted of:
Open-ended questions
Closed-ended questions
Multiple choice questions
The universe was divided into a sample of 200 respondents. The respondents
consisted of :-
Different age groups
Males and females
People from different localities within Noida region.
Chapter-1
INTRODUCTION
1.1 OVERVIEW OF THE COMPANY
PepsiCo is a world leader in convenient foods and beverages, with revenues of
about $27 billion and over 143,000 employees. The company consists of the
snack businesses of Frito-Lay North America and Frito-Lay International; the
beverage businesses of Pepsi-Cola North America, Gatorade/Tropicana North
America and PepsiCo Beverages International; and Quaker Foods North
America, manufacturer and marketer of ready-to-eat cereals and other food
products. PepsiCo brands are available in nearly 200 countries and territories.
Many of PepsiCo's brand names are over 100-years-old, but the corporation is
relatively young. PepsiCo was founded in 1965 through the merger of Pepsi-Cola
and Frito-Lay. Tropicana was acquired in 1998 and PepsiCo merged with The
Quaker Oats Company, including Gatorade, in 2001.
PepsiCo’s success is the result of superior products, high standards of
performance, distinctive competitive strategies and the high integrity of our
people.
Our overriding objective is to increase the value of our shareholders' investment
through integrated operating, investing and financing activities. Our strategy is to
concentrate our resources on growing our businesses, both through internal
growth and carefully selected acquisitions. Our strategy is continually fine-tuned
to address the opportunities and risks of the global marketplace. The
corporation's success reflects our continuing commitment to growth and a focus
on those businesses where we can drive our own growth and create
opportunities.
PEPSICO HEADQUARTERS
PepsiCo World Headquarters is located in Purchase, New York, approximately
45 minutes from New York City. The seven-building headquarters complex was
designed by Edward Durrell Stone, one of America's foremost architects. The
build-ding occupies 10 acres of a 144-acre complex that includes the Donald M.
Kendall Sculpture Gardens, a world acclaimed sculpture collection in a garden
setting.
The collection of works is focused on major twentieth century art, and features
works by masters such as Auguste Rodin, Henri Laurens, Henry Moore,
Alexander Calder, Alberto Giacometti, Arnaldo Pomodoro and Claes Oldenberg.
The gardens were originally designed by the world famous garden planner,
Russell Page, and have been extended by François Goffinet. The grounds are
open to the public, and a visitor's booth is in operation during the spring and
summer.
CORPORATE CITIZENSHIP
PepsiCo believes that as a corporate citizen, it has a responsibility to contribute
to the quality of life in our communities. This philosophy is put into action through
support of social agencies, projects and programs. The scope of this support is
extensive – ranging from sponsorship of local programs and support of employee
volunteer activities, to contributions of time, talent and funds to programs of
national impact. Each division is responsible for its own giving program.
Corporate giving is focused on giving where PepsiCo employees volunteer.
PEPSI-COLA NORTH AMERICA AND PEPSICO BEVERAGES
INTERNATIONAL
PepsiCo’s beverage business was founded at the turn of the century by Caleb
Bradham, a New Bern, North Carolina druggist, who first formulated Pepsi-Cola.
Today consumers spend about $33 billion on Pepsi-Cola beverages. Brand Pepsi
and other Pepsi-Cola products – including Diet Pepsi, Pepsi-One, Mountain Dew,
Slice, Sierra Mist and Mug brands – account for nearly one-third of total soft drink
sales in the United States, a consumer market totaling about $60 billion.
Pepsi-Cola also offers a variety of non-carbonated beverages, including Aquafina
bottled water, Fruitworks and All Sport.
In 1992 Pepsi-Cola formed a partnership with Thomas J. Lipton Co. Today Lipton
is the biggest selling ready-to-drink tea brand in the United States. Pepsi-Cola
also markets Frappuccino ready-to-drink coffee through a partnership with
Starbucks.
In 2001 SoBe became a part of Pepsi-Cola. SoBe manufactures and markets an
innovative line of beverages including fruit blends, energy drinks, dairy-based
drinks, exotic teas and other beverages with herbal ingredients.
Outside the United States, Pepsi-Cola soft drink operations include the business
of Seven-Up International. Pepsi-Cola beverages are available in about 160
countries and territories.
Pepsi-Cola began selling its products internationally in 1934 with its operations in
Canada. Operations grew rapidly beginning in the 1950s. In addition to brands
marketed in the United States, major products include Mirinda and Pepsi Max.
Pepsi-Cola North America includes the United States and Canada. Key
international markets include Argentina, Brazil, China, India, Mexico, Philippines,
Saudi Arabia, Spain, Thailand and the United Kingdom. PepsiCo Beverages
International also produces, sells and distributes Gatorade sports drinks as well
as Tropicana and other juices internationally.
Pepsi-Cola provides advertising, marketing, sales and promotional support to
Pepsi-Cola bottlers and food service customers. This includes some of the
world's best-loved and most-recognized advertising. New advertising and exciting
promotions keep Pepsi-Cola brands young.
The company manufactures and sells soft drink concentrate to Pepsi-Cola
bottlers. The company also provides fountain beverage products.
1.2 HISTORY
1893: Caleb Bradham, a young pharmacist from New Bern, North Carolina,
begins experimenting with many different soft drink concoctions; patrons
and friends sample them at his drug store fountain.
1898: One of Bradham's formulations, known as "Brad's Drink," a combination of
carbonated water, sugar, vanilla, rare oils and kola nuts, is renamed
"Pepsi-Cola" on Aug. 28.
1907: Pepsi-Cola Company continues to expand. The bottling network reaches
40 franchises, the trademark is registered in Mexico and syrup sales top
100,000 gallons.
1908: Pepsi-Cola becomes one of the first companies to modernize delivery from
horse-drawn carts to motor vehicles. A total of 250 bottlers are now under
contract in 24 states
1909: Automobile racing pioneer Barney Oldfield becomes the first celebrity to
endorse Pepsi when he appears in newspaper ads describing Pepsi as "A
bully drink…refreshing, invigorating, a fine bracer before a race." The
theme, "Delicious and Healthful" appears, and will be used intermittently
over the next two decades.
1910: The first Pepsi-Cola bottlers' convention is held in New Bern, North
Carolina
1917-18: Price controls hold sugar at 5-1/2 cents per pound during WWI. When
the war ends, so do the price controls. And the price of sugar begins an
upward spiral.
1936: Pepsi-Cola Limited of London is established. 94 new U.S. franchises are
granted. Year-end profits reach $2,100,000.
1938: The trademark is registered in the Soviet Union. There are 85 Pepsi-Cola
bottlers operating under franchise agreements across Canada.
1939: Having survived the Great Depression and a handful of ownership
changes, Pepsi is still being sold in a 12-ounce bottle for just a nickel --
twice as much refreshment as other soft drinks for the same price. A
newspaper cartoon strip, "Pepsi & Pete," introduces the theme "Twice as
Much for a Nickel" to increase consumer awareness of the Pepsi value
advantage. Walter S. Mack Jr. is elected President of Pepsi-Cola
Company.
1940: Pepsi makes advertising history with the first advertising jingle ever
broadcast nationwide. "Nickel, Nickel," will eventually become a hit record
and will be translated into 55 languages. A new, more modern logo is
adapted.
1941: In support of America's war effort, Pepsi changes the color of its bottle
crowns to red, white and blue. A Pepsi canteen in Times Square, New
York, operates throughout the war, enabling more than a million families to
record messages for armed services personnel overseas. Pepsi-Cola
Company, until now a subsidiary of Loft Incorporate, is merged with Loft.
Since the Pepsi brand name has become more famous than that of its
owner, the parent company's name is changed to Pepsi-Cola Company.
Pepsi's stock is traded on the New York Stock Exchange for the first time.
1954: "The Light Refreshment" evolves to incorporate "Refreshing Without
Filling."
1956: 149 Pepsi-Cola bottling plants are operating in 61 countries outside the
U.S.
1958: Pepsi struggles to enhance its brand image. Sometimes referred to as "the
kitchen cola," as a consequence of its long-time positioning as a bargain
brand, Pepsi now identifies itself with young, fashionable consumers with
the "Be Sociable, Have a Pepsi" theme. A distinctive "swirl" bottle replaces
the earlier straight-sided bottle.
Frito-Lay pioneers the use of hand-held computers for marketing.
1988 :Pepsi-Cola Company is reorganized along geographic lines - East, West, South
and Central regions - each with its own president and senior management staff.
Pepsi-Cola International enters a landmark joint venture agreement in
India.
Renewed accord with the Soviet Union extends PepsiCo trade
relationships.
Hostess Frito-Lay, a major new partnership in Canada, is formed with
Hostess Foods in Canada.
"Chase," a four-part Pepsi ad featuring Michael Jackson in his first-ever
episodic commercial, airs during the Grammy awards and becomes the
most-watched commercial in advertising history.
Pepsi-Cola runs first paid advertisement on Soviet TV during "Pozner
in America," a joint US-Soviet production.
Worldwide retails sales of Doritos brand tortilla chips hit $1 billion. It is
the world's largest selling snack chips brand.
Pepsi and Michael Jackson raise $600,000 with a special New York City
concert benefiting the United Negro College Fund.
2000 Pepsi-Cola Co. launches new beverage line, FruitWorks, a five flavor
line of fruit drinks.
Tropicana’s Pure Premium Multivitamin juice voted "Best Product of
the Year " in the Total Soft Drink and Juice category in France.
Hallie Eisenberg, star of Pepsi commercials, receives Young Artist
Special Achievement Award.
Pepsi-Cola revives its "Pepsi Challenge" advertising campaign.
Challenge includes Pepsi One and Diet Coke as well as regular cola.
Pepsi-Cola teams up with Yahoo Inc., the biggest web navigation
company, in a multimedia marketing campaign aimed at teens and
young adults.
Lipton’s Iced Tea and Lipton Brisk sign three-year deal to become
"Official Iced Tea of the PGA Tour."
Mountain Dew debuts new Spanish language commercial, "Arcade."
Tropicana, in a joint venture with Galaxy Foods Co., will introduce an
icy smoothie soy milk-and-fruit drink, made with juice, fruit puree along
with soymilk and soy protein.
Pepsi and Warner Music introduce "Choose Your Music" promotion.
PepsiCo, Inc. renewed agreement to sell Pepsi-Cola, Mountain Dew
and other Pepsi beverages at Tricon Global Restaurants Inc.’s US
locations for 12 years.
Aquafina brand bottled water becomes the best-selling brand of single-
serve bottled water in US retail channels.
Pepsi donates $100,000 to Michael J. Fox Foundation for Parkinson’s
Research. The actor has appeared in the Award Winning Diet Pepsi
commercial "Apartment 10G."
The PepsiCo Foundation has endowed a $200,000 fellowship fund at
Harvard in the name of the late Pepsi-Cola executive Naylor Fitzhugh.
FORTUNE magazine names PepsiCo one of America’s "50 Best
Companies for Minorities."
PepsiCo presents Leadership gift of $500,000 to Urban League
Breakthrough! Campaign.
PepsiStuff.com, a web site for merchandise, discounts and digital
music files from biggest names in movies, music, video games,
apparel and sports is launched in joint promotion with Yahoo.
Global Finance magazine names PepsiCo to its list of The World’s
Best Global Companies.
Pepsi teams up with Yahoo! in a Spanish back-to-school contest called
"Tu Sabor, Tu Futuro" ("Your Taste, Your Future"). Nationwide contest
offers opportunities to win $10,000 college scholarships.
Minority MBA magazine names PepsiCo one of "Ten Top Companies
for Minority MBAs".
Dawn Hudson, senior vice-president, strategy and marketing for Pepsi-
Cola North America, ranked among 50 most powerful people in
marketing by Ad Age.
Pepsi-Cola launches "Sierra Mist" a caffeine-free, lemon/lime soda.
FORTUNE magazine names Indra Nooyi, PepsiCo Inc.’s CFO as one
of "The 50 Most Powerful Women in Business."
The North American Coffee Partnership launched Caramel-flavored
bottled Frappuccino Coffee Drink – the sixth flavor addition to its
popular line of ready-to-drink coffee.
PepsiCo, Inc. reaches agreement to acquire a majority stake in South
Beach Beverage Company, whose highly innovative SoBe brand has
made it one of industry’s most successful companies.
Pepsi-Cola Co.’s program to assist music education in schools, called
"Share the Joy with Music," is in stores nationwide.
PepsiCo announces $4 billion share repurchase program.
PepsiCo, Inc. and The Quaker Oats Company reached an agreement
to merge.
PepsiCo, Inc. rescinds share repurchase program.
2001 PepsiCo completes the acquisition of a majority stake in South Beach
Beverage Co.
PepsiCo announces a new joint venture will be formed in Egypt
combining the salty snack operations of Chipsy, the current market
leader, and Tasty Foods, which is owned by PepsiCo.
PepsiCo launches Diversity@work, http://www.pepsico.com/diversity
web site.
Pepsi-Cola Company launches Dole single-serve juices in vending
machines, coolers and other retail outlets throughout the United
States.
Mountain Dew announces a multiyear agreement with Evernham
Motorsports to sponsor the crew of Atwood #19 Dodge Dealers
Intrepid R/T race team on the 2001 NASCAR Winston Cup circuit.
Pepsi-Cola’s flagship brand will have new tagline, "The Joy of Pepsi."
Pepsi-Cola announces a multi-year agreement with Britney Spears as
part of the "Joy of Pepsi" campaign. Pepsi will also co-sponsor Spear’s
upcoming worldwide concert tour.
Tropicana celebrates a company milestone – 300 billion fresh oranges
squeezed since the company began making country’s first ever mass-
distributed, not-from-concentrate juice in 1947.
The first Winston Cup race at NASCAR’s newest track, the
Chicagoland Speedway will be the Tropicana 400 on July 15.
Frito-Lay announces the launch of Cheetos Mystery Colorz Snacks, a
cheesy new Cheetos product that magically turns color in your mouth.
Tropicana introduces Smoothies. A natural juice-based product,
smoothies combine fruit juices and non-fat yogurt into a smooth, filling
drink that delivers nutrition, taste and convenience.
Planned merger of PepsiCo and Quaker gets European Commission
clearance.
On April 7, World Health Day, Tropicana sponsors The Tropicana
Health Run in New Delhi, India, a benchmark event that drew 10,000
promising athletes and raised funds to fight AIDS.
Pepsi-Cola Company has signed an exclusive licensing agreement
with AmeriCoGroup to create new lines of apparel, footwear and
accessories for the Pepsi and Mountain Dew brands in the United
States and Canada. The launches are scheduled for the spring 2002
fashion season.
May 1- Pepsi-Cola launches the bold new Mountain Dew Code Red
nationwide. It is Mountain Dew’s first line extension since the
introduction of Diet Mountain Dew in 1988.
PepsiCo is a sponsor of the Keep America Beautiful annual Great
American Cleanup. The company provides posters with image of Iron
Eyes Cody, the "Crying Indian."
May 1 -PepsiCo shareholders overwhelmingly approve plan to merge
with The Quaker Oats Company.
May 2 –The Board of Directors of PepsiCo, Inc. elected Steven S
Reinemund chairman of the board and chief executive officer,
succeeding Roger Enrico who will become vice chairman. The board
also elected Indra K. Nooyi as a director and gave her the additional
title of president of PepsiCo in addition to CFO.
Frito-Lay introduces Lay’s Bistro Bistro Gourmet potato chips.
Pepsi-Cola Company introduces a "Pepsi Twist." Regular and diet
versions of the crisp new cola with lemon are entering retail outlets in
selected U.S. markets.
Tropicana Smoothies, a juice and yogurt drink, debut in test markets.
PepsiCo moves up Fortune’s List of ‘Best Companies for Minorities’ to
#13.
SLAM, the orange brand Mirinda, is launched in Italy.
PepsiCo acquires Tasali Foods, Saudi Arabia’s leading snack
company.
On August 2, PepsiCo completes its merger with The Quaker Oats
Company, creating a $25 billion food and beverage company focused
on the rapidly growing consumer demand for convenience.
PepsiCo introduces a new corporate logo.
Following the September 11 tragic events of terrorist attacks, the
PepsiCo Foundation donates $5 million in support of relief efforts.
Tropicana Pure Premium Low Acid orange juice makes official debut
at Tropicana 400.
Diet Sierra Mist is introduced.
Pepsi kicks off online marketing with Yahoo. Soon after, Adweek
Names Pepsi’s Premier of Britney’s As on Yahoo! Best Online Event of
2001.
PepsiCo wins the first mulitcultural awards competition held by the
Association of National Advertisers.
DiversityInc.com says Pepsi beats Coke in Diversity Cola Wars.
Pepsi-Cola introduces Credit Card Vending.
2002 Forbes names PepsiCo one of the Platinum 400, "The Best Big
Companies in America."
Frito-Lay introduces Go Snacks, canisters that truly go anywhere.
Gatorade introduces new Gatorade ICE subline in three flavors-
Orange, Lime and Strawberry.
Tropicana Pure Premium announces sponsorship of Disney's award-
winning show The Lion King.
MARKET CHARACTERISTICSMARKET CHARACTERISTICS
The soft drink market is highly skewed in terms of place of consumption , in
terms of regional distribution & soft drink flavours as well as in terms of SKUs
While 80% of the consumption is impulse based outside home 20% comes from
consumption at home. This trend is slowly changing with increase in occasion led
sales. Changing life style , increasing urbanization and impact of liberalization
has slowly and gradually started moving the market from impulse led to occasion
led and home refrigeration led consumption.
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
flavoured drinks are popular in southern states. Sodas too are sold largely in
southern states besides sale through bars. Western markets have preference
towards mango flavoured drinks. Diet Coke presently constitutes just 0.7% of the
total carbonated beverage market.
In terms of SKUs the market is skewed towards 300ml which constitutes around
80-85% of the market rest is in the form of other pack sizes, but with increasing
occasion led and home refrigeration led consumption the sales of bigger SKUs
like more than 1 Litre pack sizes has increased this has led to increase in
contribution from PET bottle sales to 15% of the total turnover in FY00. and most
of these PET bottle sales, upto 75% are in urban areas.
Another skewness is in terms of the time of the year when the consumption
takes place. Most of the sales of soft drinks take place during summers while just
5-6% of total sales take place in winters. In summers the high season lasts for
70-75 days which contributes more than 50% of the total yearly sales.
Another peculiar feature of the market is that of positioning and targeting of
various brands. While Cola brand of Coke is targeted at teenagers and is
positioned as refreshment for mind and body. Its ThumpsUp brand is targeted at
people in age group of 20-29year positioned as thing for adventure-loving,
successful and macho person. Fanta is targeted at consumers in pre-teen age
group and is positioned as fun thing. Sprite is targeted towards teenagers
positioned to convince them to follow their instincts and not to fall for false
pretence. Maza is positioned as family drink while Diet Coke is targeted towards
health and figure conscious people especially teenage girls.
Pepsi's cola product is targeted towards youth while the Mirinda and 7 Up are
positioned on fun platform and for enjoying light moments of life.
The distribution network of Coca Cola had6.5 lakh outlets across the country in
FY00 which the company is planning to increase to 8lakhs by FY01.On the other
hand PepsiCo's distribution network had 6 lakh outlets across the
SEGMENTATIONSEGMENTATION
The soft drink market can be segmented on the basis of place of consumption or
on the basis of type of products.
The segmentation on the basis of place of consumption divides the market into
two parts: -
On-premise-80% of the consumption of soft drinks is on premise i.e.
restaurants, railways stations, cinema etc.
At home the rest 20% of the market compromises of the soft drink purchase
for consumption at home
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, Thumsup, and 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
- Mango
- Apple etc.
RETAILER’S PERCEPTIONRETAILER’S PERCEPTION
A survey was conducted to study the retailers views of the present market, future
trend and the consumer behavior patterns. The findings of the survey are as
follows:
Retailers stated that the consumers are loyal to the particular segment of
the soft drink i.e. cola, orange or lemon. But as far the loyalty for the
brands in each segment is concerned, it is not very significant.
43% of the retailers surveyed told that in soft drinks advertising is the key
component in driving sales. While 32% stated promotional schemes and
20% brand loyalty as the reason.
As consumers are not very brand loyal where the purchase of soft drinks is
concerned, the retailer push becomes a critical issue. They usually sell the
product in which they get the maximum benefit. For this, the companies try
to offer them higher margins.
While distributors get a margin of Rs 8-9 per crate ( 1 crate= 24 bottles) at 3-4%
of MRP, retailers are given a margin of 10-12% of MRP. The retailers are not
happy with this as the cost of refrigeration is very high for soft drinks. To over
come this problem the companies are offering visi-coolers schemes to their main
retailers.
CONSUMER HABITSCONSUMER HABITS
Soft drinks come under the category of products purchased in impulse. Though
the markets marred by brand loyalty the purchase decision itself is a low
involvement decision. This attitude of impulse buying is slowly changing to
occasion-led buying and also to some extent to consumption through home
refrigeration particularly in urban areas. The market is slowly moving from non-
alcoholic carbonated drinks to fruit based drinks and also to plain bottled water
due to lower price and ready availability. Consumers purchase soft drinks
primarily to quench thirst. Therefore people traveling and not having access to
hygienic water reach out for soft drink. This accounts for a large part of the sales.
Brand awareness plays a crucial role in purchase decisions.
To create this kind of brand awareness advertising and sales promotion become
very important for the soft drink manufacturers. Various sales promotions
schemes are offered to the retailers and customer. Advertisements serve the
purpose of generating awareness among the customers and to some extent
create desire in their mind, but sales promotion schemes offered to customer as
well as retailers actually affect the sales at the point of purchase.
MAJOR PLAYERS & MARKET SHARESMAJOR PLAYERS & MARKET SHARES
The soft drink market in India is dominated by the two global majors Pepsi and
Coca-Cola. Coca-Cola, which had winded up its India operations during the
introduction of the FERA regime, reentered India 16 years later in1993. Coca-
Cola acquired a major chunk of the soft drink market by buying out local brands
Thumps Up, Limca and Gold Spot from Parle Beverages. Coca-Cola has also
acquired Cadbury Schweppes soft drink brands Crush, Canada Dry and Sport
Cola in early 1999 and now recently in Oct '00 it acquired distribution rights of
these brands from IFB Agro Limited. Pepsi although started a couple of years
before Coca-Cola in 1991, has a lower market share today. It has bought over
Mumbai based Duke’s range of soft drink brands. Both the cola manufacturers
come up with their own market share figures and claim to have increased their
share. Recently in August '00 Pepsi claimed to have increased its market share
for first five months of calendar year 2000, to 49% from earlier levels of
47.3%,while Coke claims to have increased its share in the market to 57% in the
same period from55% in the corresponding period last year. Coke figures are
based on ORG's data while that of Pepsi are based on IMRB data.
MARKET SHARE (IN %)
Brand Name Market Share (in %)
( ORG figures)
Market Share (in %)
( IMRB figures)
Pepsi 41 49
Coca Cola 57 48
Comparative Analysis at a Glance
Particulars Coca-Cola Pepsi
Invented in 1886 1890
Launched in India 1993 1991
Innings 2nd time, left
India in 1977
Ist time in Indian market
Brands (Cola) Coke, ThumsUp Pepsi
Advertising agency Chaitra Leo
Burnett
HTA
Previous Advertising agency McCann-
Erickson
HTA
Celebrities into advertisements Hritihik Roshan,
Aishwarya Rai,
Daler Mehndi,
etc
Amitabh Bachchan,
Shahrukh Khan, Sachin
Tendulkar etc.
Most appealing
advertisements
30% 63%
Advertisements expenses in
2001
TV Ads outdoor ads.
Rs. 75 cr.
Rs. 30 cr.
Rs. 40 cr.
Rs. 25 cr.
Marketing
share in
India overall
ORG figures
(Used by Coke)
IMRB figures
(Used by Pepsi)
57% 41%
48% 49%
MARKET SIZE AND GROWTH
Soft drink market size for FY00 was around270mn cases (6480mn bottles). The market,
which was witnessing 5-6% growth in the early‘90s and even slower growth at around 2-
3% in late 80s. Presently the market growthhas slowed down with growth rate of 7-8%
per annum compared to 22% growth rate in the previous year. The market size for FY01
is expected to be 7000 mn bottles.
Year Production (Mn bottles)
88-89 1968
89-90 2070
90-91 2195
91-92 2490
92-93 2800
93-94 3000
94-95 3240
95-96 4000
96-97 4450
97-98 4920
98-99 5670
99-00 6480
2000-01(E) 7000
MANUFACTURING PROCESSMANUFACTURING PROCESS
Soft drinks may be carbonated or non-carbonated. For carbonated drinks
carbonation forms a critical part of the process. In carbonation carbon dioxide is
dissolved in the water, which is used in manufacturing the drink. Normally the
ingredients in soft drinks are as follows-acidulant (citric, malic orphosphoric acid),
sweetener, flavour and preservative.
In a bottling plant, soft drink companies supply concentrates to the bottlers where
it is diluted in distilled water along with other ingredients in specific proportions.
The quality of this mixture is maintained through strict controls.
DISTRIBUTION NETWORKDISTRIBUTION NETWORK
There is no involvement of wholesalers in the distribution of products. It is more
like an agent network. The companies have divided the country into various
regions and established a franchisee in each region. The franchisees have their
own bottling plants and manage all the day to day operations. However, of late,
the soft drink companies have started setting up company owned bottling units/
have been acquiring some of its franchise bottles.
ADVANTAGES AND LIMITATIONS OF FRANCHISEE NETWORK-
ADVANTAGES
Reduced investment levels in manufacturing equipment's:
If a company sources its products from franchisees, it does not require to set up
its own manufacturing plant for the purpose. The company thus benefits from
reduced investments in manufacturing facilities, inventories of raw materials and
other functions required for the manufacturing of the components.
Savings on management time:
As the components are out soured, the company stands to gain by saving on the
management time and cost. The role of the company gets restricted to
establishing the systems and in quality control at the franchise locations. Over a
period of time the systems implemented stabelise and hence the involvement of
the company remains on at the strategic decisions level.
Regular supply of components:
With the development of strong relations with the franchisees, the manufacturer
can be assured of a regular supply of components as per the manufacturer’s
specifications.
Reduced interfacing and dealing with labor
The labor and union employees involved in the manufacturing are the
responsibility of the franchisee. This is beneficial as it reduces the management
time and involvement in solving their issues.
LIMITATIONS
Large volumes
To set up an ancillary base, the company is required to produce large volumes as
the franchisee may not be interested in making large investments in the
manufacturing facilities if the volumes required to be produced are low. Especially
the existing franchisees will not take the risk of tying up with new players.
Financial support
In India, most vendors are small in size and do not have the capital to invest in
these equipment's, which requires the manufacturers to give them the financial
support. This problem becomes intense when the manufacturer has an existing
franchisee base and wants to increase the capacity.
Quality
In some cases, due to cost considerations, the manufacturers are forced to
compromise on quality.
PRICING
The general price level :
Capacity Price
1. 300 ml RS 10
2. 500 ml RS 18
3. 1 litre RS 23
4. 1.5 litre RS 43
5. 2 litre RS 50
6. Can RS 18
7. Diet Can RS 18
8. 500 ml (Pet on the go) RS 18
ADVERTISINGADVERTISING
Advertising are used to build up a long-term image for a product in order to
trigger quick sales. Advertising is a efficient way to reach numerous
geographically dispersed buyers at a low cost per exposure certain forms of
advertising, such as TV Advertising can require a large budget, while other forms,
such as of newspaper advertising can be done on small budget. Local bottlers
very dominate role in advertising in their exclusive territory. The respective
bottlers under the supervision of the parent company do all sales promotion
activities in the exclusive territories.
Different media used for advertising are
Radio
TV
Dealer Boards
Stickers
Banners
Newspapers
Magazines
Exhibition
Street lighting
Out of these Dealer boards, Banners, Exhibitions, Street Lighting etc. are done
by bottlers under the supervision of the company where as other forms of
advertising in the mass media are conducted directly by the companies.
ADVERTISING CAMPAIGN IN INDIA
Pepsi and Coke have signed on various celebrities to endorse their brands.
These celebrities are the icons in the minds of common people who act as brand
ambassadors for particular products, and when people watch their icons do
something they tend to follow. For e.g. a cricketing fan when watches Sachin
Tendulker having Pepsi is more likely to drink Pepsi than any other soft drink.
Coca-Cola in their stable have various celebrates from entertainment world like
Hritik Roshan who endorses specially for Coca-Cola. Aishwarya Rai and Amir
Khan are common names in Coke’s stable which act as their brand ambassadors
for various brands. Similarly Pepsi has the likes of Amitabh Bacchan, Sharukh
Khan to endorse for its various products from the Bollywood and from the sports
arena it has the likes of Sachin Tendulkar to endorse for its products.
The great cola wars are after fought on Television. TV as a medium reaches to
most of our urban population, which are the major consumers of Soft Drinks. Both
the cola majors openly attack each other’s products in order to prove that they
are better. Whenever there is a new ad on TV by any company there is a counter
ad by the rival brand. And it is not just the companies which care involved the
general people also eagerly await what the other are is going to do now. There
have been many examples of this in the past the most recent one is the counter
of Coke’s Amir Khan Starrer ‘Thanda matalab Coca Cola’ ad by Pepsi. In this ad
coke is trying to emphasize that coca cola is the synonymous of soft drink, which
is usually called ‘Thanda in India’. Pepsi countered this ad using their celebrities
like Fardeen Khan and Rahul Khanna, which directly attack coke by saying
‘Business thanda matlab Coca –cola’. This type of advertising has taken the cola
wars to the new heights.
Pepsi has a Shah Rukh Khan starrer. Correction: a teeny bopper- starring 60-
seconder which has our young protagonist using his PC to create a Sholay-
meets- the Midwest Pepsi claims to have based the script on the key consumer
insight that teens today are taking control. There’s redefinition of the influence of
celebrities and role models. The film has a sense of what Pepsi calls hey I can
get there too. Less conflict, more controls.
The Amrish Puri ‘Jogging in the park’ commercial was about a new social
equation, getting your own way without conflict.
‘Yeli dil maange more’ is an expression of that state of mind. Its not about
satisfying a thirst, its about making a thirst bigger.
Recently both Coke and Pepsi have come out with their new Ads aiming at the
generation next. In this series Aishwarya Rai, Starrer new ad as come out which
shows the freedom todays youngsters want to enjoy in their lifes. With this ads
Coke has actually shifted from its policy of aiming at 8-80 to definitely a younger
generation , which is actually following Pepsi’s foots steps.
SWOT analysis of the areated drink industry in India
Strengths Opportunities
Huge Financial Resources
High degree of brand awareness
and product acceptance.
Effective distribution network.
The Growing population of India
Weakness Threats
Failure to create a effective lobby to
fight for their rights with the
machinery.
Failure to curb the activities of the
unorganized sector i.e. the parallel
industry.
Huge advertising budgets.
Failure to reduce the general price
level.
Failure in promoting new brands.
Failure to prevent editorial criticism.
The threat of new entrants & of
substitutes
Consumer buying power also represents
a key threat in the industry.
Government policies.
The uncontrolled unorganized sector i.e.
the parallel industry.
PEPSICO MISSION STATEMENTPEPSICO MISSION STATEMENT
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; providing products 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.
PEPSICO VISION
To be the best consumer products company. In the eyes of our suppliers
customers, consumers, employees and shareholders.
Establish a substantial reach advantage
Establish cooling penetration advantage
Establish close customer relation
Establish stranglehold on key accounts.
Establish clear lead in towns and villages
Faith can move mountains…. Besides men and machinery amongst other
things.
AN OVERVIEWAN OVERVIEW
INTRODUCTION
PepsiCo is a world leader in convenient foods and beverages, with revenues of
about $27 billion and over 143,000 employees. The company consists of the
snack businesses of Frito-Lay North America and Frito-Lay International; the
beverage businesses of Pepsi-Cola North America, Gatorade/Tropicana North
America and PepsiCo Beverages International; and Quaker Foods North
America, manufacturer and marketer of ready-to-eat cereals and other food
products. PepsiCo brands are available in nearly 200 countries and territories.
Many of PepsiCo's brand names are over 100-years-old, but the corporation is
relatively young. PepsiCo was founded in 1965 through the merger of Pepsi-Cola
and Frito-Lay. Tropicana was acquired in 1998 and PepsiCo merged with The
Quaker Oats Company, including Gatorade, in 2001.
PepsiCo’s success is the result of superior products, high standards of
performance, distinctive competitive strategies and the high integrity of our
people.
Our overriding objective is to increase the value of our shareholders' investment
through integrated operating, investing and financing activities. Our strategy is to
concentrate our resources on growing our businesses, both through internal
growth and carefully selected acquisitions. Our strategy is continually fine-tuned
to address the opportunities and risks of the global marketplace. The
corporation's success reflects our continuing commitment to growth and a focus
on those businesses where we can drive our own growth and create
opportunities.
PEPSICO HEADQUARTERS
PepsiCo World Headquarters is located in Purchase, New York, approximately
45 minutes from New York City. The seven-building headquarters complex was
designed by Edward Durrell Stone, one of America's foremost architects. The
build-ding occupies 10 acres of a 144-acre complex that includes the Donald M.
Kendall Sculpture Gardens, a world acclaimed sculpture collection in a garden
setting.
The collection of works is focused on major twentieth century art, and features
works by masters such as Auguste Rodin, Henri Laurens, Henry Moore,
Alexander Calder, Alberto Giacometti, Arnaldo Pomodoro and Claes Oldenberg.
The gardens were originally designed by the world famous garden planner,
Russell Page, and have been extended by François Goffinet. The grounds are
open to the public, and a visitor's booth is in operation during the spring and
summer.
CORPORATE CITIZENSHIP
PepsiCo believes that as a corporate citizen, it has a responsibility to contribute
to the quality of life in our communities. This philosophy is put into action through
support of social agencies, projects and programs. The scope of this support is
extensive – ranging from sponsorship of local programs and support of employee
volunteer activities, to contributions of time, talent and funds to programs of
national impact. Each division is responsible for its own giving program.
Corporate giving is focused on giving where PepsiCo employees volunteer.
PEPSI-COLA NORTH AMERICA AND PEPSICO BEVERAGES
INTERNATIONAL
PepsiCo’s beverage business was founded at the turn of the century by Caleb
Bradham, a New Bern, North Carolina druggist, who first formulated Pepsi-Cola.
Today consumers spend about $33 billion on Pepsi-Cola beverages. Brand Pepsi
and other Pepsi-Cola products – including Diet Pepsi, Pepsi-One, Mountain Dew,
Slice, Sierra Mist and Mug brands – account for nearly one-third of total soft drink
sales in the United States, a consumer market totaling about $60 billion.
Pepsi-Cola also offers a variety of non-carbonated beverages, including Aquafina
bottled water, Fruitworks and All Sport.
In 1992 Pepsi-Cola formed a partnership with Thomas J. Lipton Co. Today Lipton
is the biggest selling ready-to-drink tea brand in the United States. Pepsi-Cola
also markets Frappuccino ready-to-drink coffee through a partnership with
Starbucks.
In 2001 SoBe became a part of Pepsi-Cola. SoBe manufactures and markets an
innovative line of beverages including fruit blends, energy drinks, dairy-based
drinks, exotic teas and other beverages with herbal ingredients.
Outside the United States, Pepsi-Cola soft drink operations include the business
of Seven-Up International. Pepsi-Cola beverages are available in about 160
countries and territories.
Pepsi-Cola began selling its products internationally in 1934 with its operations in
Canada. Operations grew rapidly beginning in the 1950s. In addition to brands
marketed in the United States, major products include Mirinda and Pepsi Max.
Pepsi-Cola North America includes the United States and Canada. Key
international markets include Argentina, Brazil, China, India, Mexico, Philippines,
Saudi Arabia, Spain, Thailand and the United Kingdom. PepsiCo Beverages
International also produces, sells and distributes Gatorade sports drinks as well
as Tropicana and other juices internationally.
Pepsi-Cola provides advertising, marketing, sales and promotional support to
Pepsi-Cola bottlers and food service customers. This includes some of the
world's best-loved and most-recognized advertising. New advertising and exciting
promotions keep Pepsi-Cola brands young.
The company manufactures and sells soft drink concentrate to Pepsi-Cola
bottlers. The company also provides fountain beverage products.
FRITO-LAY NORTH AMERICA AND FRITO-LAY INTERNATIONAL
PepsiCo's snack food operations had their start in 1932 when two separate
events took place. In San Antonio, Texas, Elmer Doolin bought the recipe for an
unknown food product – a corn chip – and started an entirely new industry. The
product was Fritos brand corn chips, and his firm became the Frito Company.
That same year in Nashville, Tennessee, Herman W. Lay started his own
business distributing potato chips. Mr. Lay later bought the company that
supplied him with product and changed its name to H.W. Lay Company. The Frito
Company and H.W. Lay Company merged in 1961 to become Frito-Lay, Inc.
Today, Frito-Lay brands account more than half of the U.S. snack chip industry.
PepsiCo began its international snack food operations in 1966. Today, with
operations in more than 40 countries, it is the leading multinational snack chip
company, accounting for more than one quarter of international retail snack chip
sales. Products are available in some 120 countries. Frito-Lay North America
includes Canada and the United States. Major Frito-Lay International markets
include Australia, Brazil, Mexico, the Netherlands, South Africa, the United
Kingdom and Spain.
Often Frito-Lay products are known by local names. These names include
Matutano in Spain, Sabritas and Gamesa in Mexico, Elma Chips in Brazil,
Walkers in the United Kingdom and others. The company markets Frito-Lay
brands on a global level, and introduces unique products for local tastes.
Major Frito-Lay products include Ruffles, Lay's and Doritos brands snack chips.
Other major brands include Cheetos cheese flavored snacks, Tostitos tortilla
chips, Santitas tortilla chips, Rold Gold pretzels and SunChips multigrain snacks.
Frito-Lay also sells a variety of snack dips and cookies, nuts and crackers.
GATORADE/TROPICANA NORTH AMERICA
Tropicana was founded in 1947 by Anthony Rossi as a Florida fruit packaging
business. The company entered the concentrate orange juice business in 1949,
registering Tropicana as a trademark.
In 1954 Rossi pioneered a pasteurization process for orange juice. For the first
time, consumers could enjoy the fresh taste of pure not-from-concentrate 100%
Florida orange juice in a ready-to-serve package. The juice, Tropicana Pure
Premium, became the company’s flagship product.
In 1957 the name of the company was changed to Tropicana Products,
headquartered in Bradenton, Florida. The company went public in 1957, was
purchased by Beatrice Foods Co. in 1978, acquired by Kohlberg Kravis &
Roberts in 1986 and sold to The Seagram Company Ltd. in 1988. Seagram
purchased the Dole global juice business in 1995. PepsiCo acquired Tropicana,
including the Dole juice business, in August 1998.
Today the Tropicana brand is available in 63 countries. Principal brands in North
America are Tropicana Pure Premium, Tropicana Season’s Best, Dole Juices
and Tropicana Twister. Internationally, principal brands include Tropicana Pure
Premium and Dole juices along with Frui'Vita, Loóza and Copella. Tropicana Pure
Premium is the third largest brand of all food products sold in grocery stores in
the United States.
Gatorade sports drinks was acquired by the Quaker Oats Company in 1983 and
became a part of PepsiCo with the merger in 2001. Gatorade is the first isotonic
sports drink. Created in 1965 by researchers at the University of Florida for the
school's football team, "The Gators," Gatorade is now the world's leading sport's
drink.
QUAKER FOODS NORTH AMERICA
The Quaker Oats Company was formed in 1901 when several American pioneers
in oat milling came together to incorporate. In Ravenna, Ohio, Henry D. Seymour
and William Heston had established the Quaker Mill Company and registered the
now famous trademark. Seymour wanted his product to be a symbol of honesty,
integrity and strength. The figures of a man in Quaker clothes became the first
registered trademark for breakfast cereal and remains the hallmark for Quaker
Oats today.
In Cedar Rapids, Iowa, John Stuart and his son, Robert, and their partner,
George Douglas, operated the largest cereal mill of the time. Ferdinand
Schumacher, known as "The Oatmeal King," had founded German Mills
American Oatmeal Company in 1856.
Combining The Quaker Mill Company with the Stuart and Schumacher
businesses brought together the top oats milling expertise in the country as The
Quaker Oats Company.
The first major acquisition of the company was Aunt Jemina Mills Company in
1926, which is today the leading manufacturer of pancake mixes and syrup.
In 1986, The Quaker Oats Company acquired the Golden Grain Company,
producers of Rice-A-Roni.
PepsiCo merged with The Quaker Oats Company in 2001. Its products still have
the eminence of wholesome, good-for-you food, as envisioned by the company
over a century ago.
.
Frito-Lay Brands
Lay’s potato chips
Lay’s Bistro Gourmet
potato chips
Lay’s kettle cooked potato
chips
Wavy Lay’s potato chips
Baked Lay’s potato crisps
Maui Style potato crisps
Ruffles potato chips
Baked Ruffles potato
chips
Ruffles Flavor Rush
potato chips
Doritos tortilla chips
3D’s snacks
Tostitos tortilla chips
Baked Tostitos tortilla
chips
Santitas tortilla chips
Fritos corn chips
Cheetos cheese flavored
snacks
Rold Gold pretzels
Funyuns onion flavored
rings
Miss Vickie’s potato chips
Gamesa cookies
Dippas
Sonric’s sweet snacks
Fandangos corn snacks
Hamkas snacks
Niknaks cheese sticks
Quavers potato snacks
Sabritas potato chips
Twisties cheese snacks
Walkers potato crisps
Walkers Square potato
snacks
Walkers French Fries
potato sticks
Walkers Monster Munch
Corn snacks
Pepsi-Cola Brands
Pepsi-Cola
Caffeine Free Pepsi
Diet Pepsi
Caffeine Free Diet Pepsi
Pepsi ONE
Wild Cherry Pepsi
Pepsi Twist
Mountain Dew
Outside the U.S.
Mirinda
7UP
Pepsi Max
Kas
Teem
Pepsi Limón
Pepsi Light
Gatorade Brands
Gatorade thirst quencher
Gatorade Frost thirst
quencher
Gatorade Fierce thirst
quencher
Gatorade Ice thirst quencher
Gatorade energy bar
Propel fitness water
Tropicana Brands
Tropicana Pure Premium
Tropicana Season’s Best
juices
Tropicana Smoothies
Tropicana Pure Tropics juices
Dole juices
Outside the U.S.
PEPSICO PRODUCTS: PEPSICO HAS HUNDREDS OF BRANDS. THESE ARE SOME OF THE BEST KNOWN.
Sunchips multigrain
snacks
Cracker Jack candy
coated popcorn
Chester’s popcorn
Grandma’s cookies
Munchos potato crisps
Smartfood popcorn
Baken-ets fried pork skins
Oberto meat snacks
Frito-Lay dips & salsa
Frito-Lay nuts
Doritos, Cheetos &
Chester’s snack crackers
Fritos, Tostitos & Doritos
snack kits
Outside the U.S.
Bocabits wheat snacks
Crujitos corn snacks
Diet Mountain Dew
Mountain Dew Code Red
Slice
Mug
Sierra Mist
FruitWorks
Lipton Brisk (Partnership)
Lipton Iced Tea
(Partnership)
Dole juice drinks
FruitWorks juice drinks
Aquafina purified drinking
water
Frappuccino coffee
beverages (Partnership)
SoBe juice drinks and
teas
Loóza juices and nectars
Copella juices
Frui’Vita juices
Tropicana 100 juices
Quaker Brands
Quaker Oats
Quaker instant oatmeal
Cap’n Crunch cereal
Life cereal
Quaker Toasted Oatmeal
cereal
Quaker 100% Natural cereal
Quaker Squares cereal
Quisp cereal
King Vitaman cereal
Quaker Bagged cereals
Quaker Ohs! Cereal
Mother’s cereal
Quaker rice cakes
Quaker Quakes rice snacks
Quaker Chewy granola bars
"DOWN THE MEMORY LANE"
1893: Caleb Bradham, a young pharmacist from New Bern, North Carolina,
begins experimenting with many different soft drink concoctions; patrons
and friends sample them at his drug store fountain.
1898: One of Bradham's formulations, known as "Brad's Drink," a combination of
carbonated water, sugar, vanilla, rare oils and kola nuts, is renamed
"Pepsi-Cola" on Aug. 28.
1902: The instant popularity of this new drink leads Bradham to devote all of his
energy to developing Pepsi-Cola into a full-fledged business and he
applies for a trademark with the U.S. Patent Office in Washington, D.C.
The first Pepsi-Cola Company is formed.
1903: "Doc" Bradham moves the bottling of Pepsi-Cola from his drugstore into a
rented warehouse. In keeping with its origin as a pharmacist's concoction,
Bradham's advertising praises his drink as "Exhilarating, Invigorating, Aids
Digestion." And he sells 7,968 gallons of syrup in his first year of
operation.
1904: Bradham purchases a building in New Bern known as the Bishop factory
for $5,000 and moves all bottling and syrup operations to this location.
Sales increase to 19,848 gallons.
1905: A new logo appears, the first change from the original created in 1898.
Pepsi-Cola's first bottling franchises are established in Charlotte and
Durham, North Carolina.
History & Advertising highlights
1906: The logo is redesigned and a new slogan is added: "The Original Pure
Food Drink." The Pepsi-Cola trademark is registered in Canada. There are
15 Pepsi bottling plants in the U.S., and syrup sales reach 38,605 gallons.
1907: Pepsi-Cola Company continues to expand. The bottling network reaches
40 franchises, the trademark is registered in Mexico and syrup sales top
100,000 gallons.
1908: Pepsi-Cola becomes one of the first companies to modernize delivery from
horse-drawn carts to motor vehicles. A total of 250 bottlers are now under
contract in 24 states
1909: Automobile racing pioneer Barney Oldfield becomes the first celebrity to
endorse Pepsi when he appears in newspaper ads describing Pepsi as "A
bully drink…refreshing, invigorating, a fine bracer before a race." The
theme, "Delicious and Healthful" appears, and will be used intermittently
over the next two decades.
1910: The first Pepsi-Cola bottlers' convention is held in New Bern, North
Carolina
1917-18: Price controls hold sugar at 5-1/2 cents per pound during WWI. When
the war ends, so do the price controls. And the price of sugar begins an
upward spiral.
1920: Pepsi appeals to consumers with, "Drink Pepsi-Cola. It Will Satisfy You."
The price of sugar on the New York Exchange reaches 26 cents per
pound. Bradham gambles on the price going higher, and buys large stocks
of sugar. By the end of the year, sugar demand slows on the open market,
and the price drops to a catastrophic low of two cents per pound.
1921: The collapse of the sugar market results in enormous financial losses for
Pepsi-Cola Company. Bradham attempts to put the company back on its
feet by borrowing cash and selling assets and additional shares of stock.
But by the end of the year, the company is insolvent, and the bottling
network collapses. Only two plants remain open.
1922: An attempt at reorganization fails as few shares of stock are sold and
investor interest in the new company wanes.
1923: Pepsi-Cola Company is declared bankrupt, and its assets are sold to a
North Carolina concern, Craven Holding Corporation, for $30,000.
1928: After five continuous losing years, the company is reorganized as the
National Pepsi-Cola Company.
1931: U.S. District Court for Eastern District Virginia declares the National Pepsi-
Cola Company bankrupt. Loft, Inc., the giant candy company, buys Pepsi-
Cola Company.
1932: The trademark is registered in Argentina.
1934: A landmark year for Pepsi-Cola. The drink is a hit, and to attract even more
sales, Pepsi begins selling a 12-ounce bottle for five cents, the same price
charged by its competitors for six ounces. The 12-ounce bottle debuts in
Baltimore, where it is an instant success. The cost savings prove
irresistible to depression-worn Americans and sales skyrocket nationally.
Pepsi-Cola Company of Canada Limited is formed. Caleb Bradham, the
founder of Pepsi-Cola and "Brad's Drink," dies.
1935: Pepsi-Cola operations are moved to Long Island City, New York. The
company sets up national territorial boundaries for the Pepsi bottler
franchise system. Compania Pepsi-Cola de Cuba is formed.
1936: Pepsi-Cola Limited of London is established. 94 new U.S. franchises are
granted. Year-end profits reach $2,100,000.
1938: The trademark is registered in the Soviet Union. There are 85 Pepsi-Cola
bottlers operating under franchise agreements across Canada.
1939: Having survived the Great Depression and a handful of ownership
changes, Pepsi is still being sold in a 12-ounce bottle for just a nickel --
twice as much refreshment as other soft drinks for the same price. A
newspaper cartoon strip, "Pepsi & Pete," introduces the theme "Twice as
Much for a Nickel" to increase consumer awareness of the Pepsi value
advantage. Walter S. Mack Jr. is elected President of Pepsi-Cola
Company.
1940: Pepsi makes advertising history with the first advertising jingle ever
broadcast nationwide. "Nickel, Nickel," will eventually become a hit record
and will be translated into 55 languages. A new, more modern logo is
adapted.
1941: In support of America's war effort, Pepsi changes the color of its bottle
crowns to red, white and blue. A Pepsi canteen in Times Square, New
York, operates throughout the war, enabling more than a million families to
record messages for armed services personnel overseas. Pepsi-Cola
Company, until now a subsidiary of Loft Incorporate, is merged with Loft.
Since the Pepsi brand name has become more famous than that of its
owner, the parent company's name is changed to Pepsi-Cola Company.
Pepsi's stock is traded on the New York Stock Exchange for the first time.
1943: The "Twice as Much" advertising strategy expands to includes the theme,
"Bigger Drink, Better Taste." Sugar is again rationed during World War II.
To counter the effects of rationing, Mack purchases a sugar plantation in
Cuba, which proves to be a highly profitable venture.
1947: International profits reach $6,769,000. Pepsi moves into the Philippines
and Middle East.
1948: Pepsi-Cola's corporate headquarters moves from Long Island City, New
York, to Midtown Manhattan. Pepsi is produced in cans for the first time.
1949: "Why Take Less When Pepsi's Best?" is added to "Twice as Much"
advertising.
1950: "More Bounce to the Ounce" becomes the new Pepsi theme as changing
soft drink economics force Pepsi to raise prices to competitive levels.
Alfred N. Steele becomes President and CEO of Pepsi-Cola. His wife,
Hollywood movie star Joan Crawford, is instrumental in promoting the
company's product line.
1953: Americans become more weight conscious, and a new strategy based on
lower caloric content of Pepsi is implemented with "The Light
Refreshment" campaign.
1954: "The Light Refreshment" evolves to incorporate "Refreshing Without
Filling."
1956: 149 Pepsi-Cola bottling plants are operating in 61 countries outside the
U.S.
1958: Pepsi struggles to enhance its brand image. Sometimes referred to as "the
kitchen cola," as a consequence of its long-time positioning as a bargain
brand, Pepsi now identifies itself with young, fashionable consumers with
the "Be Sociable, Have a Pepsi" theme. A distinctive "swirl" bottle replaces
the earlier straight-sided bottle.
1959: Soviet Premier Nikita Krushchev and U.S. Vice President Richard Nixon
meet in the soon-to-be-famous "kitchen debate" at an international trade
fair in Moscow. The meeting, over cups of Pepsi, is photo-captioned in the
U.S. as "Krushchev Gets Sociable."
1961: Pepsi further refines its target audiences, recognizing the increasing
importance of the younger, post-war generation. "Now It's Pepsi, For
Those Who Think Young" defines youth as a state of mind as much as a
chronological age, maintaining the brand's appeal to all market segments.
1963: In one of the most significant demographic events in commercial history,
the post-war baby boom emerges as a social and marketplace
phenomenon. Pepsi recognizes the change, and positions Pepsi as the
brand belonging to the new generation -- The Pepsi Generation. "Come
Alive! You're in the Pepsi Generation" makes advertising history. It is the
first time a product is identified, not so much by its attributes, as by its
consumers' lifestyles and attitudes.
1964: A new product, Diet Pepsi, is introduced into Pepsi-Cola advertising.
1965
PepsiCo, Inc. was founded by Donald M. Kendall, president and Chief
Executive officer of Pepsi-Cola and Herman W. Lay, Chairman and
Chief Executive Officer of Frito-Lay, through the merger of the two
companies. Pepsi-Cola was created in the late 1890s by Caleb
Bradham, a New Bern, N.C. pharmacist.
Frito-Lay, Inc. was formed by the 1961 merger of the Frito Company,
founded by Elmer Doolin in 1932, and the H. W. Lay Company,
founded by Herman W. Lay, also in 1932. Herman Lay is chairman of
the Board of Directors of the new company; Donald M. Kendall is
president and chief executive officer.
The new company reports sales of $510 million and has 19,000
employees.
MAJOR PRODUCTS
Pepsi-Cola Company - Pepsi-Cola (formulated in 1898), Diet Pepsi
(1964) and Mountain Dew (introduced by Tip
Corporation in 1948).
Frito-Lay, Inc. - Fritos brand corn chips (created by Elmer Doolin
in 1932), Lay's brand potato chips (created by
Herman W. Lay in 1938), Cheeotos brand
cheese flavored snacks (1948), Ruffles brand
potato chips (1958) and Rold Gold brand
pretzels (acquired 1961).
Mountain Dew launches its first campaign
"Yahoo Mountain Dew ... it'll tickle your innards."
1966
Doritos brand tortilla chips are introduced. They are destined to
become the most popular snack chip in the U.S.
Pepsi enters Japan and Eastern Europe.
1967
Pepsi Generation advertising,
"COME ALIVE! YOU ARE IN THE PEPSI GENERATION"
Campaign that named and claimed a whole generation
1963-67
Introduces a new theme:
PepsiCo stock splits two-for-one.
"TASTE THAT BEATS THE OTHERS COLD
PEPSI POURS IT ON!"
1968
North American Van Lines (NAVL), a premier transportation company,
joins PepsiCo. NAVL remains a strong contributor to PepsiCo until it is
divested in 1984.
1967
Bold, modern Pepsi-Cola packaging using red, white and blue is
introduced.
"YOU 'VE GOT A LOT TO LIVE,
PEPSI'S GOT A LOT TO GIVE",
becomes the advertising theme.
Frito-Lay introduces Funyuns brand onion flavored snacks.
Mountain Dew changes its slogan to
"GET THAT BAREFOOT FEELING' DRINKIN' MOUNTAIN DEW".
1970
PepsiCo sales pass the $1 billion mark. The company has 36,000
employees.
PepsiCo moves from New York City to new world headquarters in
Purchase, N.Y. The new corporate headquarters feature a building by
one of America's foremost architects, Edward Durrell Stone (1902-
1978), set on a campus of 144 acres amid an outdoor sculpture
garden.
Frito-Lay begins a program of expansion. Over the next decade, the
company opens, on average, more than one new plant a year.
W.C. Fritos is introduced as Frito-Lay's new advertising mascot.
Wilson Sporting Goods, a top name in sports equipment, joins
PepsiCo. It is divested in 1985.
Pepsi introduces the industry's first two-liter bottle.
Pepsi is the first company to respond to consumer preference with
lightweight, recyclable, plastic bottles.
1971
PepsiCo Chief Executive Officer Donald M. Kendall assumes the
position of chairman of the Board of Directors on the retirement of
Herman W. Lay. Lay maintains an active role in the corporation until his
death December 6, 1982.
Andrall E. Pearson was appointed president of PepsiCo, a position he
held until his retirement in 1984.
1972
Mountain Dew, acquired by Pepsi-Cola in 1964, switched its
advertising and package graphics from hillbillies to action-oriented
scenes. Sales climb and Mountain Dew became one of the 10 best-
selling soft drinks in the United States.
Don Kendall announced agreement making Pepsi-Cola the first foreign
product sold in the then U.S.S.R. PepsiCo was given exclusive rights to
import Stolichnaya Russian vodka in the U.S.
1973
Foods International, later called PepsiCo Foods International (PFI) and
subsequently named Frito-Lay International, was established to market
snack foods around the world.
Individualism flourishes, Pepsi advertising picked up on the movement,
plays it back as
"JOIN THE PEPSI PEOPLE, FEELIN'FREE",
The third Mountain Dew slogan appears
"PUT A LITTLE YAHOO IN YOUR LIFE".
1974
PepsiCo sales pass the $2 billion mark.
Pepsi-Cola becomes the first American consumer product to be
produced, marketed and sold in the former Soviet Union.
PepsiCo has 49,000 employees.
Pepsi Light, with a distinctive lemon taste, is introduced as an
alternative to traditional diet colas.
"HELLO SUNSHINE"
becomes the slogan for Mountain Dew.
1976
The Pepsi Challenge, introduced in Dallas, Tex. in 1975, becomes a
national campaign. Around the nation, consumers select Pepsi-Cola as
the best tasting cola.
PepsiCo adopts Code of Worldwide Business Conduct.
Pepsi-Cola becomes the single largest selling soft drink brand sold in
U.S. supermarkets.
Advertising campaign is:
"HAVE A PEPSI DAY!" PUPPIES."
becomes one of America's best-loved ads.
1977
PepsiCo acquires Pizza Hut, Inc. Pizza Hut was found in 1958 by Dan
and Frank Carney. It is spun off along with Taco Bell and KFC
businesses as Tricon Global Restaurants, Inc. in 1997.
PepsiCo passes the $3 billion mark in sales.
PepsiCo stock splits three-for-one.
1978
Taco Bell is acquired. Taco Bell was established in the mid 1960s by
Glen Bell. It is spun off along with Pizza Hut and KFC businesses as
Tricon Global Restaurants, Inc. in 1997.
1979
Opening of PepsiCo Research and Technical Center in Valhalla, N.Y.
PepsiCo reaches $5 billion in sales.
PepsiCo's international snack food operations continue to grow. It is
now larger than Frito-Lay at the time of its merger with Pepsi-Cola.
Pepsi's new campaign:
"CATCH THAT PEPSI SPIRIT!"
reflects the upbeat attitude of an increasingly positive America.
"HELLO SUNSHINE"
campaign remains basically intact, theme line is changed to
"REACH FOR THE SUN, REACH FOR MOUNTAIN DEW"
Pepsi introduces twelve-pack cans.
1980
PepsiCo Food Service International (PFSI) is formed to focus on
overseas development of restaurants.
PepsiCo now has 111,000 employees.
First presentation of the international Donald M. Kendall Bottler-of-the-
Year Award.
Frito-Lay begins nationwide roll-out of Grandma's brand cookies.
Garden designer Russell Page (1906-1985) begins to extend the
gardens at PepsiCo.
Pepsi is #1 in sales in take-home market.
1981
PepsiCo passes $7 billion in sales.
Tostitos brand crispy round tortilla chips are introduced by Frito-Lay.
PepsiCo Fitness Center is completed; making PepsiCo one of the most
advanced companies in the area of employee health and fitness.
Frito-Lay begins nutritional labeling on a national basis.
"PEPSI'S GPOT YOUR TASTE FOR LIFE!"
was the new campaign. s
PepsiCo and China reached an agreement to manufacture soft drinks,
with production beginning in 1982.
PepsiCo launched PepsiCo Food Systems (PFS), its restaurant supply
company. PFS was sold to AmeriServe in 1997.
1982
Pepsi Free and Diet Pepsi Free, the first major brand caffeine-free
colas, are introduced.
Inauguration of the first Pepsi-Cola operation in China.
1983
The Bottler Hall of Fame is established to recognize the achievement
and dedication of international bottlers.
1984
PepsiCo is restructured to focus on its three core businesses: soft
drinks, snack foods and restaurants. Transportation and sporting goods
businesses are sold.
Wayne Calloway becomes president of PepsiCo.
Diet Pepsi is reformulated with 100% NutraSweet.
Slice and Diet Slice, the first major soft drinks with fruit juice, are
introduced.
Pepsi-Cola makes advertising history as Michael Jackson and his
brothers usher in a new generation of Pepsi-Cola advertising in two of
the most eagerly-awaited television commercials featuring music
marketing. Pepsi becomes "The Choice of a New Generation."
Herman W. Lay Award of Excellence established at Frito-Lay to
recognize world-class selling excellence.
1985
PepsiCo is now the largest company in the beverage industry. The
company has revenues of more than $7.5 billion, more than 137,000
employees.
Pepsi-Cola products are available in nearly 150 countries and
territories around the world. Snack food operations are in 10
international markets.
Frito-Lay expands into new headquarters in Plano, Tex.
PepsiCo's first line of sweet snacks, Sonrics, is added in Mexico.
The cola war takes "one giant sip for mankind," when a Pepsi "space
can" is successfully tested aboard the space shuttle.
Pepsi's successful "Entertainment Marketing" strategy is extended, with
singers Lionel Richie and Tina Turner and actor Michael J. Fox, among
others.
Pepsi distributes products in China.
1986
Wayne Calloway becomes chairman of the Board of Directors and
chief executive officer in May when Donald M. Kendall retires.
The corporation is reorganized and decentralized. Beverage operations
are combined under PepsiCo Worldwide Beverages; snack food
operations are combined under PepsiCo Worldwide Foods.
Shareholders approve reincorporating of PepsiCo in North Carolina.
PepsiCo stock splits three-for-one.
PepsiCo purchases Kentucky Fried Chicken, the leader in the quick
service chicken market. Colonel Harland Sanders founded KFC.
Colonel Sanders began franchising the company in 1952. KFC is spun
off along with Pizza Hut and Taco Bell businesses as Tricon Global
Restaurants, Inc. in 1997.
PepsiCo purchases 7-Up International, the third largest franchise soft
drink operation outside the United States.
PepsiCo passes $10 billion in sales.
PepsiCo is listed on the Tokyo stock exchange.
Chester Cheetah makes his prime-time television debut for Frito-Lay
with a fully animated commercial for Cheeotos cheese flavored snacks.
"Dew it Country Cool, " becomes new slogan for Mountain Dew.
Michael Jackson is signed to a second contract to appear in Pepsi
advertising, this time as a solo performer. Diet Pepsi's "Apartment
10G," starring Michael J. Fox, is the commercial of the year and an
instant classic.
Diet Pepsi gets a new logo.
Get the logo
Pepsi-Cola acquires Mug Root Beer.
Pepsi-Cola sponsors the first Western-produced consumer commercial
in the Soviet Union, appearing during the Goodwill Games.
PepsiCo Board of Directors visits the People's Republic of China to
mark the opening Pepsi's second bottling plant in China.
Frito-Lay introduces Santitas brand restaurant style tortilla chips.
1987 Pepsi-Cola Company moves to new headquarters in Somers,
N.Y.
"Mustang," a Diet Pepsi commercial, becomes the first ad ever to
appear in a home video cassette. The cassette, "Top Gun," becomes
the largest-selling video ever.
Pepsi sponsors tours of major music stars, including Miami Sound
Machine, David Bowie and Tina Turner.
Frito-Lay pioneers the use of hand-held computers for marketing.
1988
Pepsi-Cola Company is reorganized along geographic lines - East,
West, South and Central regions - each with its own president and
senior management staff.
Pepsi-Cola International enters a landmark joint venture agreement in
India.
Renewed accord with the Soviet Union extends PepsiCo trade
relationships.
Hostess Frito-Lay, a major new partnership in Canada, is formed with
Hostess Foods in Canada.
"Chase," a four-part Pepsi ad featuring Michael Jackson in his first-ever
episodic commercial, airs during the Grammy awards and becomes the
most-watched commercial in advertising history.
Pepsi-Cola runs first paid advertisement on Soviet TV during "Pozner
in America," a joint US-Soviet production.
Worldwide retails sales of Doritos brand tortilla chips hit $1 billion. It is
the world's largest selling snack chips brand.
Pepsi and Michael Jackson raise $600,000 with a special New York
City concert benefiting the United Negro College Fund.
1989
PepsiCo introduces SharePower Stock Option program for all
employees, becoming the first large corporation to award stock options
to virtually all full-time employees.
PepsiCo acquires Walkers Crisps and Smith Crisps, two of the United
Kingdom's leading snack food companies.
PepsiCo acquires Smartfood ready-to-eat popcorn business.
PepsiCo named one of Fortune Magazines top 10 "Most Admired
Corporations."
Frito-Lay is decentralized and reorganized along geographical lines.
1990 PepsiCo enters top 25 of Fortune 500 ranking with sales of
$15.4 billion, it is number 23. The company has more than 300,000
employees.
PepsiCo stock splits three-for-one.
PepsiCo named one of Fortune Magazine's top 10 "Most Admired
Corporations" for the second year in a row.
PepsiCo acquires a controlling interest in Gamesa, Mexico's largest
cookie company.
Frito-Lay introduces its Light line of low-oil snacks.
Frito-Lay advertising for Doritos brand tortilla chips features talk
celebrity Jay Leno.
Popular teen stars Fred Savage and Kirk Cameron appear in Pepsi
advertising, while Ray Charles, joins Diet Pepsi vets Billy Crystal and
Michael J. Fox in "The Right Ones" campaign. During the SuperBowl,
star quarterback Joe Montana offers a special taste challenge to
celebrities appearing in competitive commercials.
PepsiCo signs the largest commercial trade agreement in history with
the Soviet Union, expecting sales in the U.S.S.R. to double by the end
of the century.
1991
Profits exceed $1 billion for the first time.
PepsiCo named one of Fortune Magazine's top 10 "Most Admired
Corporations" for the third year in a row.
PepsiCo acquires an equity interest in Wedel SA, the leading
manufacturer of chocolate and confectionery in Poland. The new joint
venture will be a entrance into the Eastern European snack market.
Snacks now include operations in 23 countries.
Pepsi-Cola introduces a new logo, its eighth in 93 years. Advertising
features rap singer MC Hammer.
Pepsi-Cola forms joint venture with Thomas J. Lipton Co. to develop
and market tea-based drinks.
Frito-Lay launches Sunchips, its first multigrain snack.
Frito-Lay introduces Cheeotos Paws.
Frito-Lay introduces Tostitos brand Restaurant-Style tortilla chips.
Ray Charles teams up with the Uh-Huh Girls. The slogan for Diet Pepsi
is modified to "You Got The Right One Baby, Uh-Huh!"
1992
PepsiCo named one of Fortune Magazine's top 10 "Most Admired
Corporations" for the fourth year in a row.
PepsiCo purchases an equity position in Carts of Colorado, Inc., the
leading manufacturer and marketer of mobile merchandising
equipment. It is sold in 1995.
PepsiCo purchases an equity interest in California Pizza Kitchen. It is
sold in 1997.
Pepsi-Cola starts distributing Ocean Spray Cranberries, Inc. single
serve juice products.
Pepsi-Cola introduces new "Gotta Have It" advertising theme and
launches the "Gotta Have It" card.
Pepsi-Cola implements the "Right Side Up" philosophy; where the
customer and front line employees are at the top of the organization.
Frito-Lay and General Mills agree to merge snack food businesses in
Europe.
Frito-Lay introduces reformulation of Doritos brand Nacho Cheesier
flavored tortilla chips.
Frito-Lay presents network Lay's/Ruffles advertising -- the first in 10
years.
Frito-Lay enlists George Foreman for Doritos advertising.
1993
Pepsi introduces new slogan "Be Young - Have Fun - Drink Pepsi."
Pepsi-Cola begins distribution of Lipton's line of ready-to-drink teas
nationwide.
Frito-Lay launches new Doritos brand Tortilla Thins. Within five months
of launch, Tortilla Thins breaks into the ranks of the 10 largest-selling
snack chips in the U.S.,TWA, Northwest Airlines offer Pepsi-Cola.
After a 27-year absence, Pepsi returns to Broadway with the lighting of
a spectacular new neon sign in Times Square.
Both PepsiCo beverages and snack food operating profits pass
the$1billion mark.
Pepsi-Cola introduces freshness dating.
Pepsi-Cola begins test marketing of Ocean Spray Lemonade and
Ocean Spray Splash, a fruit sparkler.
Frito-Lay introduces Baked Tostitos brand Tortilla Chips.
Pepsi introduces "The Cube," an innovative 24-can multipack, that
satisfies growing consumer demand for convenient large size soft drink
packaging.
PepsiCo acquires East Side Mario's Restaurants Inc. It sells the 40
units in 1997.
PepsiCo acquires D'Angelo Sandwich Shops chain, which is sold in
1997.
Pepsi-Cola International introduces Pepsi Max, a soft drink with unique
blend of sweeteners that delivers maximum cola taste in a no-sugar
product.
1994
Frito-Lay nationally launches Wavy Lay's Original and Au Gratin
flavors.
Pepsi-Cola introduces Aquafina bottled water into test market.
Pepsi-Cola is first major soft drink maker to begin producing and
distributing its product in Vietnam.
Pepsi-Cola launches its sports drink All Sport and a national
advertising campaign with basketball great Shaquille O'Neal.
Pepsi-Cola International acquires Indian company, its first big bottling
plant in Bombay.
Doritos is introduced to the United Kingdom, marking the creation of a
new "global brand."
Frito-Lay and K.C. Masterpiece Original Brand Barbecue Sauce
launches Lay's Masterpiece brand Barbecue Flavor Potato Chips,
marking the first time Lay's has entered into a co-branding agreement.
PepsiCo and Starbucks form the North American Coffee Partnership to
jointly develop ready-to-drink coffee beverages.
Pepsi-Cola licenses the Citrus Hill trademark from The Procter &
Gamble Co. to launch a line of fountain juices and drinks.
China gets cheese-less Cheeotos, the first time a major snack-food
brand will be produced in China for Chinese tastes.
Reba McEntire becomes first celebrity to appear nationally on a Frito-
Lay package.
Frito-Lay nationally launches new baked Rold Gold Fat Free Thins
Pretzels, the first fat free reduced sodium pretzel introduced by the
company.
1995
Wake Forest University names its School of Business and
Accountancy in honor of Wayne Calloway.
PepsiCo sales reach $30.4 billion. There are 470,000 employees
worldwide, making PepsiCo the third largest employer.
Pepsi-Cola introduces "Nothing else is a Pepsi" themeline.
Pepsi-Cola is top ad scorer in SuperBowl.
Mountain Dew sponsors the Grammy Awards. Themeline is "Been
There, Done That, Tried That."
The Pepsi Lipton Tea Partnership debuts new ad campaign
emphasizing "There's only one Original."
Pepsi-Cola introduces Smooth Moos Smoothies, a line of low-fat dairy
shakes.
7Up International launches 7UP Ice Cola, a new clear cola.
Pepsi-Cola International and Kraft Foods International jointly announce
the formation of "Maxwell House Beverage Company." The new
company will market ready-to-drink canned coffee in Asia.
Tennis superstar Andre Agassi will promote Pepsi Max internationally
and Mountain Dew in the U.S.
The North American Coffee Partnership between Pepsi-Cola Company
and Starbucks Coffee Company introduces Mazagran carbonated
coffee beverage into test market.
In France, Pepsi introduces a line of non-carbonated fruit-based
beverages called "The Radical Fruit Company."
Frito-Lay aggressively expands its low/no-fat snack segment. Baked
Lays is introduced.
Frito-Lay tests Baked Tostitos, Rold Gold Fat Free Pretzels, Ruffles
Reduced Fat Potato Chips and Tostitos fat-free salsas and black bean
dip brands. Campaign line is "Taste the fun, not the fat."
Frito-Lay and Sara Lee Bakery announce alliance to develop,
manufacture and distribute baked goods. The single-serve products will
carry the Sara Lee name and be distributed by Frito-Lay.
Frito-Lay launches World Wide Web site: http://www.fritolay.com.
PepsiCo will introduce Lay's brand potato chips in 20 markets
throughout the world.
1996
Roger Enrico succeeds Wayne Calloway as chief executive officer.
"Pepsi Stuff" unveiled.Consumers save points for merchandise.
PepsiCo stocks splits two-for-one.
Pepsi-Cola domestic and international operations combined into Pepsi-
Cola Company. International and domestic snack food operations
combined into one business unit called Frito-Lay Company.
Mountain Dew launches a massive beeper network called "The
Mountain Dew Extreme Network." PepsiCo, Inc. and Lucasfilm Ltd.
announce the largest promotional alliance in entertainment history,
linking existing and future Star Wars series with PepsiCo beverage,
snack foods and restaurant brands worldwide.
Pepsi-Cola and MTV establish a partnership to develop international
programming, cross promotions, marketing tie-ins and special events.
Filming of the world's first commercial in space. Cosmonauts shoot a
large blue Pepsi can in orbit outside the MIR Space station.
Pepsi-Cola is exclusive soft drink supplier to Canadian Airlines. Pepsi
is at Marriott Hotels as well.
International retail sales of Doritos brand tortilla chips exceed $250
million, global expansion nears 20 countries.
Frito-Lay announces national launch of Reduced Fat Doritos brand
Tortilla Chips.
1997
PepsiCo announces plans to spin off its restaurant businesses as an
independent publicly-traded company, sell its food distribution
company and focus on its core beverage and snack food businesses.
The spin-off is completed October 6, 1997. Shareholders receive one
share in the new restaurant company, Tricon Global Restaurants, Inc.,
for every 10 shares they hold in PepsiCo, Inc.
PepsiCo is now a $20 billion company with approximately 140,000
employees worldwide.
Pepsi-Cola introduces new advertising campaign with the theme
"Generation Next."
Pepsi-Cola North American bottling operations become a separate unit
called The Pepsi-Cola Bottling Co.
National roll-out of Aquafina bottled water.
Frito-Lay announces plans to buy the 104-year-old snack, Cracker
Jack, a candy-coated mix of popcorn and peanuts from Borden Foods
Corp.
1998 Pepsi-Cola celebrates 100th Anniversary with first worldwide bottlers
conference, held in Hawaii. The event is held during the same time as
first bottler’s conference.
Frito-Lay introduces Doritos 3D’s Tortilla Chips, a triangle-shaped chip.
Pepsi-Cola introduces two-liter plastic bottle with built-in "grip handle"
that makes it easier to grip and pour."
PepsiCo Chairman and CEO Roger A. Enrico donates his salary to
provide scholarships for children of PepsiCo employees.
NAIC’s annual top 100 stock survey of America’s investment clubs
shows PepsiCo, Inc. as the most popular stock for 1998.
Pepsi introduces new look called the "Globe" which prominently
features a 3-dimensional Globe against a blue ice backdrop.
PepsiCo is named by the Council of Economic Priorities (CEP) to its
honor roll of socially responsible companies.
Pepsi-Cola announces breakthrough product: Pepsi One, great-
tasting, one-calorie cola is first in United States with newly FDA
approved sweetener Sunett®.
Former Chairman and CEO Wayne Calloway dies on July 9th. He
joined PepsiCo in 1967.
PepsiCo acquires Tropicana Products from Seagram Company Ltd.,
the biggest acquisition ever undertaken by PepsiCo. Tropicana was
founded in 1947 by Anthony Rossi. Its major brand is Tropicana Pure
Premium Juices.
The Frito-Lay Company purchases Smith’s Snackfood Company in
Australia from United Biscuits Holdings, Inc. (Purchase completed on
Aug. 26.)
In November the PepsiCo Board of Directors authorizes the company
to convert a significant portion of its $7 billion company-owned bottling
operations, The Pepsi Bottling Group (PBG) into public ownership.
PepiCo signs groundbreaking 10-year agreement with the YMCA of
the USA through which both Pepsi-Cola and Frito-Lay will develop
national and local marketing programs to support the organization’s
many charitable efforts.
Frito-Lay becomes the snack chip leader in South and Central America
as it enters a joint venture with Empreseas Polar SA of Venezuela.
Frito-Lay acquires Barcel, Chile’s second-largest snack company.
Frito-Lay acquires an expanded state in Tasty Foods Egypt.
Pepsi and Frito-Lay media buying is consolidated.
PepsiCo products contribute more than any other packaged goods
company to the sales growth in U.S. supermarkets, mass
merchandisers and chain drug stores.
1999 In March The Pepsi Bottling Group, the world’s largest Pepsi bottler,
begins trading on the New York Stock exchange. It is listed under the
symbol PBG. The $2.3 billion public offering is among the biggest
initial public offerings in stock market history.
Tropicana Products, Inc. acquires Alimentos del Valle S.A., one of
Spain’s leading chilled juice and soup companies.
Tropicana introduces two new calcium-fortified Pure Premium juices:
Pure Premium Grovestand Calcium and Pure Premium Ruby Red
Grapefruit Calcium.
Pepsi launches "The Joy of Cola" advertising campaign.
Steve Reinemund named president of PepsiCo.
Hallie Eisenberg "Joy of Cola" commercials named #6 of "Fifty
Greatest TV commercials of all time," by TV Guide.
Lipton introduces Iced Tea Green Tea with Honey and Diet Peach.
PepsiCo and Suntory Limited signed an agreement to create a joint
venture linking bottling networks in North Carolina and New York. The
new company, Pepsi Bottling Ventures, will be the third largest bottler
in the Pepsi system.
Tropicana juices are entering the huge India market for the first time.
Spearheaded by Tropicana Asia Pacific, orange juice will appear in the
New Delhi and Bangalore markets.
PepsiCo named to FORTUNE Magazine’s list of "The Fifty best
companies for Asians, Blacks and Hispanics."
Frito-Lay introduces a new corporate logo.
Westchester Arts Council honors PepsiCo for "Outstanding
contributions to the arts and the community."
Frito-Lay signs agreement with Oberto Sausage to be the exclusive
distributor of the natural-style jerky.
Worth Magazine names PepsiCo to its "Most Generous Companies"
list.
2000 Pepsi-Cola Co. launches new beverage line, FruitWorks, a five flavor
line of fruit drinks.
Tropicana’s Pure Premium Multivitamin juice voted "Best Product of
the Year " in the Total Soft Drink and Juice category in France.
Hallie Eisenberg, star of Pepsi commercials, receives Young Artist
Special Achievement Award.
Pepsi-Cola revives its "Pepsi Challenge" advertising campaign.
Challenge includes Pepsi One and Diet Coke as well as regular cola.
Pepsi-Cola teams up with Yahoo Inc., the biggest web navigation
company, in a multimedia marketing campaign aimed at teens and
young adults.
Lipton’s Iced Tea and Lipton Brisk sign three-year deal to become
"Official Iced Tea of the PGA Tour."
Mountain Dew debuts new Spanish language commercial, "Arcade."
Tropicana, in a joint venture with Galaxy Foods Co., will introduce an
icy smoothie soy milk-and-fruit drink, made with juice, fruit puree along
with soymilk and soy protein.
Pepsi and Warner Music introduce "Choose Your Music" promotion.
PepsiCo, Inc. renewed agreement to sell Pepsi-Cola, Mountain Dew
and other Pepsi beverages at Tricon Global Restaurants Inc.’s US
locations for 12 years.
Aquafina brand bottled water becomes the best-selling brand of single-
serve bottled water in US retail channels.
Pepsi donates $100,000 to Michael J. Fox Foundation for Parkinson’s
Research. The actor has appeared in the Award Winning Diet Pepsi
commercial "Apartment 10G."
The PepsiCo Foundation has endowed a $200,000 fellowship fund at
Harvard in the name of the late Pepsi-Cola executive Naylor Fitzhugh.
FORTUNE magazine names PepsiCo one of America’s "50 Best
Companies for Minorities."
PepsiCo presents Leadership gift of $500,000 to Urban League
Breakthrough! Campaign.
PepsiStuff.com, a web site for merchandise, discounts and digital
music files from biggest names in movies, music, video games,
apparel and sports is launched in joint promotion with Yahoo.
Global Finance magazine names PepsiCo to its list of The World’s
Best Global Companies.
Pepsi teams up with Yahoo! in a Spanish back-to-school contest called
"Tu Sabor, Tu Futuro" ("Your Taste, Your Future"). Nationwide contest
offers opportunities to win $10,000 college scholarships.
Minority MBA magazine names PepsiCo one of "Ten Top Companies
for Minority MBAs".
Dawn Hudson, senior vice-president, strategy and marketing for Pepsi-
Cola North America, ranked among 50 most powerful people in
marketing by Ad Age.
Pepsi-Cola launches "Sierra Mist" a caffeine-free, lemon/lime soda.
FORTUNE magazine names Indra Nooyi, PepsiCo Inc.’s CFO as one
of "The 50 Most Powerful Women in Business."
The North American Coffee Partnership launched Caramel-flavored
bottled Frappuccino Coffee Drink – the sixth flavor addition to its
popular line of ready-to-drink coffee.
PepsiCo, Inc. reaches agreement to acquire a majority stake in South
Beach Beverage Company, whose highly innovative SoBe brand has
made it one of industry’s most successful companies.
Pepsi-Cola Co.’s program to assist music education in schools, called
"Share the Joy with Music," is in stores nationwide.
PepsiCo announces $4 billion share repurchase program.
PepsiCo, Inc. and The Quaker Oats Company reached an agreement
to merge.
PepsiCo, Inc. rescinds share repurchase program.
2001 PepsiCo completes the acquisition of a majority stake in South Beach
Beverage Co.
PepsiCo announces a new joint venture will be formed in Egypt
combining the salty snack operations of Chipsy, the current market
leader, and Tasty Foods, which is owned by PepsiCo.
PepsiCo launches Diversity@work, http://www.pepsico.com/diversity
web site.
Pepsi-Cola Company launches Dole single-serve juices in vending
machines, coolers and other retail outlets throughout the United
States.
Mountain Dew announces a multiyear agreement with Evernham
Motorsports to sponsor the crew of Atwood #19 Dodge Dealers
Intrepid R/T race team on the 2001 NASCAR Winston Cup circuit.
Pepsi-Cola’s flagship brand will have new tagline, "The Joy of Pepsi."
Pepsi-Cola announces a multi-year agreement with Britney Spears as
part of the "Joy of Pepsi" campaign. Pepsi will also co-sponsor Spear’s
upcoming worldwide concert tour.
Tropicana celebrates a company milestone – 300 billion fresh oranges
squeezed since the company began making country’s first ever mass-
distributed, not-from-concentrate juice in 1947.
The first Winston Cup race at NASCAR’s newest track, the
Chicagoland Speedway will be the Tropicana 400 on July 15.
Frito-Lay announces the launch of Cheetos Mystery Colorz Snacks, a
cheesy new Cheetos product that magically turns color in your mouth.
Tropicana introduces Smoothies. A natural juice-based product,
smoothies combine fruit juices and non-fat yogurt into a smooth, filling
drink that delivers nutrition, taste and convenience.
Planned merger of PepsiCo and Quaker gets European Commission
clearance.
On April 7, World Health Day, Tropicana sponsors The Tropicana
Health Run in New Delhi, India, a benchmark event that drew 10,000
promising athletes and raised funds to fight AIDS.
Pepsi-Cola Company has signed an exclusive licensing agreement
with AmeriCoGroup to create new lines of apparel, footwear and
accessories for the Pepsi and Mountain Dew brands in the United
States and Canada. The launches are scheduled for the spring 2002
fashion season.
May 1- Pepsi-Cola launches the bold new Mountain Dew Code Red
nationwide. It is Mountain Dew’s first line extension since the
introduction of Diet Mountain Dew in 1988.
PepsiCo is a sponsor of the Keep America Beautiful annual Great
American Cleanup. The company provides posters with image of Iron
Eyes Cody, the "Crying Indian."
May 1 -PepsiCo shareholders overwhelmingly approve plan to merge
with The Quaker Oats Company.
May 2 –The Board of Directors of PepsiCo, Inc. elected Steven S
Reinemund chairman of the board and chief executive officer,
succeeding Roger Enrico who will become vice chairman. The board
also elected Indra K. Nooyi as a director and gave her the additional
title of president of PepsiCo in addition to CFO.
Frito-Lay introduces Lay’s Bistro Bistro Gourmet potato chips.
Pepsi-Cola Company introduces a "Pepsi Twist." Regular and diet
versions of the crisp new cola with lemon are entering retail outlets in
selected U.S. markets.
Tropicana Smoothies, a juice and yogurt drink, debut in test markets.
PepsiCo moves up Fortune’s List of ‘Best Companies for Minorities’ to
#13.
SLAM, the orange brand Mirinda, is launched in Italy.
PepsiCo acquires Tasali Foods, Saudi Arabia’s leading snack
company.
On August 2, PepsiCo completes its merger with The Quaker Oats
Company, creating a $25 billion food and beverage company focused
on the rapidly growing consumer demand for convenience.
PepsiCo introduces a new corporate logo.
Following the September 11 tragic events of terrorist attacks, the
PepsiCo Foundation donates $5 million in support of relief efforts.
Tropicana Pure Premium Low Acid orange juice makes official debut
at Tropicana 400.
Diet Sierra Mist is introduced.
Pepsi kicks off online marketing with Yahoo. Soon after, Adweek
Names Pepsi’s Premier of Britney’s As on Yahoo! Best Online Event of
2001.
PepsiCo wins the first mulitcultural awards competition held by the
Association of National Advertisers.
DiversityInc.com says Pepsi beats Coke in Diversity Cola Wars.
Pepsi-Cola introduces Credit Card Vending.
2002 Forbes names PepsiCo one of the Platinum 400, "The Best Big
Companies in America."
Frito-Lay introduces Go Snacks, canisters that truly go anywhere.
Gatorade introduces new Gatorade ICE subline in three flavors-
Orange, Lime and Strawberry.
Tropicana Pure Premium announces sponsorship of Disney's award-
winning show The Lion King.
PEPSICO ENVIRONMENTAL COMMITMENTPEPSICO ENVIRONMENTAL COMMITMENT
PepsiCo, Inc. serves consumers in two major businesses: beverages and snack
foods. The company consists of Pepsi-Cola Company, the world's second largest
beverage company, Tropicana Products, Inc. the world's largest marketer and
producer of branded juices and Frito-Lay Company, the world's largest
manufacturer and distributor of snack chips. PepsiCo brand names are among
the best known and our operations reach every corner of the world.
As a consumer products company, PepsiCo does not have the major
environmental problems of heavy industry. Our biggest environ-mental challenge
is packaging generated by our products. Packaging is important to public health
and a critical component of the distribution system that delivers products to
consumers and commercial establishments. To meet both consumer demand
and safeguard the environment, we recycle, reuse and reduce packaging
wherever possible. Each business is also committed to responsible use of
resources required in manufacturing our products.
PepsiCo is proud of our environmental record. Each of our divisions and facilities
is empowered to find solutions to its unique environ-mental challenges. This
report addresses the environmental principles presented in our Code of Conduct
and examines our progress.
CHANNEL MANAGEMENTCHANNEL MANAGEMENT
Pepsi has a very well managed distributive system. It is said that “Pepsi don’t
have bottlers, it has partners”. Pepsi has a well alligned-bottling network. It
operates through COBO (Company owned bottling operations) and FOBO
(Franchise owned Bottling operations).
It is this way in which Pepsi Co. India Strengthens its marketing that gives it an
edge. Every number of its sales team is meticulously taught the merchandising
and display skills that can leverage the reach of the company’s bottling network
to achieve high visibility for the product.
SELLING PROCESS
Pepsi has a very well managed selling system. It takes as lot of care to ensure
that the products (Pepsi bottles) are available to the consumers.
Pepsi soft drink are produced in our plants and crates are supplier to
shopkeepers directly. Noida has been divided around 15 routes which are called
direct routes. For every route there is a Routs Agent. Route Agent moves with the
company owned truck and ensure that maximum shops are covered each day, so
that regular supply of Pepsi soft drinks is made.
Routs agents take the order from the shopkeepers and then with the help of
loaders they give the required number of crates to the Crates from the outlet and
then they move for the next outlet.
Our plants also have some agency in each routs. They supply in the areas where
Pepsi’s trucks are not able to reach. These areas are called indirect-routes.
EMPOWERMENT
One of the strongest weapon in the Pepsi’s armoury is the flexibility it has
empowered its people with. Every manager and sales person has the authorities
to take whatever steps he feels will make consumer aware of the brand and
increase its consumption.
MANUFACTURING PROCESS
Pop! Fizz. Ah-h! It happens millions of times a day, every day. That feeling of
thirst hits, someone opens a Pepsi and the magic begins. Cold. Effervescent.
Delicious. Each time, every time.
Of course, that's what you expect from a great product like Pepsi-Cola. Or from
Diet Pepsi, Mountain Dew or any of our other popular soft drinks and other
beverages.
But how do we do it? How can the people at Pepsi be sure that every single
bottle and can of Pepsi-Cola is always great-tasting, sparkling and fresh?
Actually, there's no secret to how to make Pepsi (except for the recipe). But there
is a system. And that system, plus a lot of hard work, is what enables Pepsi-Cola
and the independent Pepsi-Cola bottlers all around the world to bring you that
high-quality, consistently refreshing Pepsi taste each time you open one of our
products.
The system starts with the finest ingredients available -- kola nuts, vanilla
beans, flavor oils, citrus, sweeteners and the purest waters we can distill.
Then we add the best technology and all the care we can muster to blend our
ingredients.
And during the 100-plus years we've been making soft drinks, we've also created
our own exacting production and quality standards, monitored with constant
testing to guarantee quality and consistency in our products.
Finally, we have our own local distribution system. It's designed to make sure that
the Pepsi you open at home is as fresh and delicious as it was when we sealed it
at our plant. And it serves every city and town in the United States.
Complicated? For sure. And expensive, too. But there's no other way we can be
certain that Pepsi-Cola products you buy are the highest quality, best value
products we can make.
Now, here's what all of those steps look like:
Flavor concentrates are shipped from special Pepsi-Cola manufacturing plants in
heavy-duty, air-tight containers. Liquid sweeteners are transported in special
tanker trucks. All ingredients and food products are stored in clean, sanitary
areas, and items requiring refrigeration are kept in temperature-controlled areas.
The bottles and cans that will eventually be filled with Pepsi are manufactured
elsewhere, and shipped to Pepsi plants wrapped and sealed for protection.
Labels, cartons, caps, the carbon dioxide used to carbonate soft drinks and other
supplies are also produced for Pepsi by other companies. On arrival, everything
is subject to careful inspection to make certain all of the ingredients and materials
meet Pepsi's high standards.
Special equipment is used to uncase and depalletize incoming shipments of
bottles and cans. Cans are by far the most popular package with consumers
because they're lightweight and easy to store. Though bulky, the cartons and
pallets on which the empty packages arrive are also relatively light in weight, so
it's easy for the machines to automatically remove the cans from their shipping
containers at high speed. The machines then transfer the individual packages to
a conveyor belt.
Once on the belt, cans are part of an enclosed, controlled environment that keeps
them sanitary and helps ensure quality throughout the filling process. They travel
rapidly through a printer that applies a production code to each can. Then they're
automatically turned upside down, and rinsed thoroughly with filtered water
before proceeding directly to the filter.
Water is a key ingredient in all soft drinks. Pepsi-Cola takes special care to purify
the water it uses -- a procedure that involves careful treatment, filtration and
purification. Pepsi standards are precise and closely monitored at every step of
the process. The result of this kind of painstaking attention to detail is that the
water used in Pepsi-Cola and all of our beverages is among the purest available
anywhere.
Pepsi-Cola flavor concentrate is carefully combined with sweeteners and other
ingredients in large stainless steel mixing tanks. Quality control audits performed
by specially trained technicians are a critical part of the manufacturing sequence
for each batch, and are typical of the attention to detail that's necessary if the
highest possible quality standards are to be maintained. Cleanliness is also vital,
so all internal and external surfaces of the production system, including syrup
lines, proportioning, cooling and carbonating equipment, are meticulously
sanitized.
In the last step of the manufacturing process, as the now-rinsed cans reach the
filler, they're reinverted, immediately filled and the lid is applied -- at an average
speed of 1,200 cans per minute. The filler is where the syrups from the mixing
tanks are combined with the purified water from the filtration process. The liquid
is then carbonated. This carbonation process gives soft drinks the special sparkle
-- fizzy bubbles -- that adds to their quality of refreshment.
All Pepsi cans and bottles are imprinted with a freshness date, which is a date
code that tells you your soft drink is fresh. A final quality check ensures that the
package is properly filled, sealed and labeled.
As products leave the manufacturing line, they're combined into a variety of
packages -- six- or 12-packs, 24- or 30-can cases or cases of individual two-liter
bottles. The finished packages are stacked on shipping pallets and moved to
temporary holding areas or to a central warehouse for shipping.
The storage is purely temporary, since freshness is an important part of
delivering the best possible product to our consumers. Some of our products will
be quickly transported by large trucks to outlying districts and towns. Most,
however, are loaded into Pepsi-Cola delivery trucks you see calling on food
stores in your own neighborhood. Other trucks deliver Pepsi-Cola syrup to
restaurants and fountains. To make sure there's always enough Pepsi for
everyone who wants one, our trucks are on the road every single day. Many
individual stores actually receive deliveries several times per week -- a big reason
why the Pepsi products you buy and use are always fresh and great tasting.
PACKAGING
Providing our consumers with easy-to-use, convenient and innovative containers
is one of our top priorities. Package introductions we've made over the years
include the industry's first two-liter bottle; the first company to respond to
consumer preference with lightweight, recyclable, plastic bottles; The Cube, an
easy-to-store 24-pack; Big Slam, the wide-mouth one-liter bottle; as well as our
three-liter bottle, designed to provide consumers with extra value (not all products
and packaging is available in all markets).
Our local bottlers, many of which are privately owned, franchise operations, make
all packaging decisions. Most of our bottlers are following the industry-wide trend
to use plastic packaging due to environmental considerations. The industry is
now making greater use of fully recyclable aluminum cans and PET plastic
bottles.
More information on Pepsi-Cola's environmental commitment, including its
packaging initiatives, can be found here.
The "CUBE" is Pepsi's new innovative 24-can multipack. It was dubbed the
"CUBE" by consumer focus groups, which are a small test market population
that's invited by Pepsi-Cola to give the company feedback before the introduction
of a new package or product. The consumer focus groups Pepsi used for this
product coined the name the "CUBE" and it stuck!
Polyethylene terephthalate, or "PET plastic," is a form of polyester used to make
strong, lightweight, shatter-resistant bottles for soft drinks, water, juice and other
non-food products. Bottles made from PET plastic, which are marked with the
number one code on the or near the bottle of the bottle, are recyclable into
products including new containers, fiberfill for sleeping bags and coats, fabric,
carpet, auto parts, film and more.
PRICING
Pricing of bottles :
Capacity Price
1. 300 ml RS 10
2. 500 ml RS 18
3. 1 litre RS 23
4. 1.5 litre RS 43
5. 2 litre RS 50
8. Pepsi Can RS 18
9. Pepsi Diet Can RS 18
8. 500 ml (Pet on the go) RS 18
COMPANY PROFILECOMPANY PROFILE
The R.K. Jaipuria (RKJ) Group is an established group with diversified interests
in foods beverages. Thoroughly experienced in setting up and running “PEPSI”
Bottling Plants in India. Mr. Ravi Jaipuria was adjudged Best Pepsi Bottler of the
world for the year 1998. He was presented with the Donald M. Kendall Bottler of
then year award, the highest honour to any franchisee, incidentally only India in
the last 100 years. He has over 2½ decades experience in the food and
beverages industry. Flagship companies of the group are involved in the
manufacture of Pepsi beverages with a decent track of growth and profitability.
The plants are located at Greater Noida, Jaipur, Kosi, Alwar, Jodhpur, Goa,
Dharwad & Kathmandu (Nepal). The Ice Cream plant at Agra manufacture Ice
cream for Hindustan Lever marketed under the brand name of “KWALITY
WALLS”.
The RKJ Group has signed a franchise agreement with Tricon Restraints India
(India) Pvt. Ltd., to run a fast food chain in Northern India under the name of
“PIZZA HUT” by opening fifteen restaurants, the first six of which are already
operational at Noida, Jaipur, Agra, Green Park, Defence Colony & Alaknanda.
The first beverage plant was set up in 1969 at Agra under Agra Beverages
Corporation Ltd., since then the family (consisting of RKJ & his brothers) has set
up eighteen bottling plants in India (holding the market share of about 40% of the
Pepsi manufactured and marketed in the country) and one in Nepal (holding
100% of the Pepsi share in the country). The bottling plants of the group are
spread at Greater Noida (Devyani Beverages Ltd.), Jaipur, Kosi Kalan, Alwar &
Jodhpur [Varun Beverages Ltd.), Goa (Goa Bottling Company Ltd.), Dharwada
(Nectar Beverages Pvt. Ltd.) and Nepal [Varun Beverages (Nepal) Pvt. Ltd.]. The
franchise area allocated by Pepsi Foods Limited to RKJ Group extents to the
whole of Rajasthan, four districts of Haryana, East Delhi, nine districts of
Western Uttar Pradesh, ten districts of Central Uttar Pradesh and North Western
Madhya Pradesh.
Varun Beverages Ltd., was incorporated as a public limited company in June
1995, for bottling of various brands of Pepsi Soft Drinks like Pepsi, Mirinda
Orange, Mirinda Lemon, 7UP and Soda at its plants for the domestic market.
The company has its bottling plants at Jaipur, Kosi Kalan (Mathura, Uttar
Pradesh), Alwar & Jodhpur. The combined turnover of VBL is about Rs. 180
crores.
Devyani Beverages Ltd., was incorporated in 1990. The company has its
bottling plant at Greater Noida. This is one of the modern plant with 4 Bottling
Line including Fruit Juice Line. The turnover of the company is about rs. 90
crores.
Devyani International Pvt. Ltd., was incorporated in 1991. The company during
August 1997, signed a franchise agreement with Pepsico Restaurant
International Pvt. Ltd., to setup a chain of Restaurants in Northern India, under
the name of PIZZA HUT by opening 15 restaurants. The first six restaurants are
already operational at Jaipur, Agra, Noida, Defence Colony , Green Park &
Alaknanda (New Delhi).
Devyani Foods Ltd., was incorporated in Sep’ 1989. It manufactures Ice Cream
at Agra.
Varun Beverages Nepal Pvt. Ltd., VBNPL, Nepal is an existing bottling unit
taken over by RKJ Group in Feb ‘ 1998.
Goa Bottling Company Ltd., (GBCL) The group has recently taken over this
bottling plant to manufacture and supply the Pepsi range of Soft Drinks in Goa.
Nectar Beverages Pvt. Ltd. (NBPL) The RKJ Group has taken over this bottling
plant, in Dharwad, for manufacture and supply of Pepsi range of Soft Drinks in
Karnataka.
GRAPHICAL PRESENTATION
&
ANALYSIS
TOTAL NUMBER OF RESPONDENTS
Gender No. of Respondents
Male 92
Female 108
This graph indicates the total number of respondent’s contacted gender wise.
TOTAL NUMBER OF FEMALES AND MALES BY AGE GROUP
Gender Age Group
12-18 18-25 25-40 Above 40
Male 13 39 27 13
Female 20 26 23 39
This graph reflects the total number of respondent’s age and gender wise.
RESPONDENTS WHO HAVE AREATED DRINKS
Gender Age Group
12-18 18-25 25-40 Above 40
Male 13 36 26 10
Female 20 24 19 34
This graph reflects the total number of respondent’s age and gender wise who
have aerated drinks. In comparison with graph number 2 we find that 7 men and
11 females don’t have aerated drinks.
CONSUMPTION PATTERN
Age Group 12-15
Gender Frequency
Between 1-5 Between 5-10 Above 10
Male 6 5 2
Female 8 9 3
This graph reflects that the highest frequency of consumption by females is
between 5-10 bottles per week and its 1-5 in males.
AGE GROUP 18-25
Gender Frequency
Between 1-5 Between 5-10 Above 10
Male 8 19 9
Female 11 7 6
This graph reflects that the highest frequency of consumption by females is
between 1-5 bottles per week and its 5-10 in males.
Age Group 25-40
Gender Frequency
Between 1-5 Between 5-10 Above 10
Male 7 11 8
Female 10 6 3
This graph reflects that the highest frequency of consumption by females is
between 1-5 bottles per week and its between5-10 in males.
Above 40
Gender Frequency
Between 1-5 Between 5-10 Above 10
Male 9 1 0
Female 29 5 0
This graph reflects that the highest frequency of consumption by females &
males is between 1-5bottles per week.
FLAVOUR PREFERENCE
AGE GROUP 12-18
Gender Flavours
Cola Lemon Orange Mango Others
Male 6 4 1 2 0
Female 3 9 6 2 0
The flavoured most preferred by males in this age group is Cola followed by
Lemon mango & orange. The flavour preferred by females in this age group is
Lemon followed by Orange, cola & mango. This graph also reflects that there is
no preference for other flavors available in the market.
AGE GROUP 18-25
Gender Flavours
Cola Lemon Orange Mango Others
Male 17 12 14 3 0
Female 6 7 5 6 0
The flavoured most preferred by males in this age group is Cola followed by
orange, Lemon & mango. The flavour preferred by females in this age group is
Lemon followed by orange, cola & mango. This graph also reflects that there is
no preference for other flavors available in the market.
AGE GROUP 25-40
Gender Flavours
Cola Lemon Orange Mango Others
Male 14 7 4 1 0
Female 6 3 8 2 0
The flavoured most preferred by males in this age group is Cola followed by,
Lemon, orange & mango. The flavour preferred by females in this age group is
orange followed by cola, lemon & mango. This graph also reflects that there is no
preference for other flavors available in the market.
ABOVE 40
Gender Flavours
Cola Lemon Orange Mango Others
Male 2 6 2 0 0
Female 9 14 11 0 0
The flavour most preferred by males in this age group is Lemon followed by, cola
& orange. The flavour preferred by females in this age group is lemon followed by
cola, orange. This graph also reflects that there is no preference for mango &
other flavors available in the market.
TOP OF THE MIND BRAND RECALL
GENDER: FEMALE
Brand Age Group
12-18 18-25 25-40 Above 40
Pepsi 8 11 9 15Coke 6 8 7 10Sprite 2 3 0 37’UP 1 0 0 0Fanta 1 0 0 1Mirinda 0 0 0 0Limca 0 0 1 3ThumsUP 2 2 2 2Maza 0 0 0 0Slice 0 0 0 0Others 0 0 0 0
This graph reflects that the brand recall of Pepsi is highest followed by Coke in
the age group 12-18.In the age group 18-25 Pepsi has the highest brand recall
followed by Coke. In the age group 25-40 Pepsi has the highest brand recall
followed by Coke. The last group Pepsi has the highest brand recall followed by
Coke.
GENDER: MALE
Brand Age Group
12-18 18-25 25-40 Above 40
Pepsi 8 15 12 4
Coke 5 16 9 3
Sprite 0 2 4 1
7’UP 0 0 0 0
Fanta 0 0 0 0
Mirinda 0 0 0 0
Limca 0 1 1 2
ThumsUP 0 2 0 0
Maza 0 0 0 0
Slice 0 0 0 0
Others 0 0 0 0
This graph reflects that the brand recall of Pepsi is highest followed by Coke in
the age group 12-18.In the age group 18-25 Coke has the highest brand recall
followed by Pepsi. In the age group 25-40 Pepsi has the highest brand recall
followed by Pepsi. The last group agrees with the age group25-40 in toto.
BRAND PREFERENCE
GENDER: FEMALE
Brand Age Group
12-18 18-25 25-40 Above 40
Pepsi 2 3 2 5
Coke 1 2 2 2
Sprite 5 4 2 5
7’UP 2 1 1 2
Fanta 5 5 6 8
Mirinda 1 0 2 3
Limca 2 2 0 7
ThumsUP 0 1 2 2
Maza 2 6 2 0
Slice 0 0 0 0
Others 0 0 0 0
This graph reflects that the brands most preferred in the age group 12-18 by
females are Fanta & Sprite. In age group 18-25 the most preferred brand is
Maaza followed by Fanta, Sprite and Pepsi. In the age group 25-40 the most
prefers brand is Fanta. In the last age group the most preferred brand is Fanta
followed by Limca, Sprite and Pepsi.
GENDER: MALE
Brand Age Group
12-18 18-25 25-40 Above 40
Pepsi 3 6 4 2
Coke 3 2 2 0
Sprite 4 7 3 1
7’UP 0 2 1 0
Fanta 1 4 4 2
Mirinda 0 0 0 0
Limca 0 3 3 5
ThumsUP 0 9 8 0
Maza 2 3 1 0
Slice 0 0 0 0
Others 0 0 0 0
This graph reflects that the brands most preferred in the age group 12-18 by
males are Sprite followed by Coke and Pepsi. In age group 18-25 the most
preferred brand is Thumsup followed by Sprite and Pepsi. In the age group 25-40
the most preferred brand is Thumsup followed Fanta and Pepsi. In the last age
group the most preferred brand is Limca followed by Sprite and Pepsi.
STRENGTHS OF THE PREFERRED BRANDS
GENDER: FEMALE
Strengths Age Group
12-18 18-25 25-40 Above 40
Taste 12 16 15 23
Availability 3 2 0 3
Advertising 5 6 4 8
This graph reflects that taste happens to be the core strength of their brand
followed by advertising.
GENDER: MALE
Strengths Age Group
12-18 18-25 25-40 Above 40
Taste 11 23 17 7
Availability 0 7 0 0
Advertising 2 6 9 3
This graph reflects that taste happens to be the core strength of their brand
followed by advertising.
PREFERRED TV COMMERCIALSGENDER : FEMALE
Commercial Age Group
12-18 18-25 25-40 Above 40A 10 12 3 5B 2 4 2 1C 2 5 9 3D 1 0 0 9E 2 0 2 0F 3 3 0 2G 0 0 0 0H 0 0 3 4A–Pepsi (Sharuk, Kareena & Adnan) E-Pepsi (Sharuk & Kareena)B- Coke (Aishwarya Rai & Kids) F-Pepsi (Britney Spears)C-Pepsi (Amitab & Sachin) G-ThumsUP (Kante)D-Sprite (Kite Flying) H-Coke (Amir Khan)
This graph reflects that the most preferred advertisement in the age group 12-18
is the new Pepsi commercial featuring is Sharuk, Kareena & Adnan .In the age
group the most like advertisement is the new Pepsi commercial featuring
Sharuk, Kareena & Adnan followed by the Pepsi commercial featuring Amitab &
Sachin.
In the age group 25-40 the most liked advertisement is the Pepsi commercial
featuring Amitab & Sachin followed by the Pepsi commercial featuring Sharuk,
Kareena & Adnan. In the last age group the most preferred ad is the new
commercial of Sprite The Kite Flying one followed by the new Pepsi commercial
featuring is Sharuk, Kareena & Adnan.
GENDER : MALE
Commercial Age Group
12-18 18-25 25-40 Above 40A 6 18 4 3B 3 6 0 2C 0 2 6 4D 0 3 4 0E 2 0 1 1F 1 2 0 0G 0 3 6 0H 1 2 5 0A–Pepsi (Sharuk, Kareena & Adnan) E-Pepsi (Sharuk & Kareena)B- Coke (Aishwarya Rai & Kids) F-Pepsi (Britney Spears)C-Pepsi (Amitab & Sachin) G-ThumsUP (Kante)D-Sprite (Kite Flying) H-Coke (Amir Khan)
This graph reflects that the most preferred advertisement in the age group
12-18 & the age group 18-25 is the new Pepsi commercial featuring is
Sharuk Kareena & Adnan followed by the Coke commercial featuring Aishwarya
Rai and the kids. In the age group 25-40 the most liked advertisement is the
Pepsi commercial featuring Amitabh and Sachin followed by the Coke
commercial featuring Amir Khan. In the last age group the most preferred
advertisement is the Pepsi commercial featuring Amitabh and Sachin followed
by the Pepsi commercial featuring Sharuk,Kareena & Adnan
PREFERRED PUNCH-LINES
GENDER: MALE
Punch-Lines Age Group
12-18 18-25 25-40 Above 40
A 6 12 8 5
B 0 10 7 0
C 1 0 5 0
D 3 1 0 5
E 3 13 6 0
A – Dil Mange More B - Le Chal
C – Tanda Mathlab Coca Cola D – Life Ho To Aisi
E – Taste TheThunder
Dil maange more happens to be the favorite punch-line in all the age groups
followed by Le Chal and taste the thunder.
GENDER: FEMALE
Punch-Lines Age Group
12-18 18-25 25-40 Above 40
A 11 15 8 19
B 0 2 1 3
C 3 0 0 0
D 2 2 6 10
E 4 5 4 2
A – Dil Mange More B - Le Chal
C – Tanda Mathlab Coca Cola D – Life Ho To Aisi
E – Taste TheThunder
Dil maange more happens to be the favorite punch-line in all the age groups
followed by life ho to aisi and taste the thunder.
MOTIVATORS FOR BUILDING LOYALTYGENDER: FEMALE
Factors Age Group
12-18 18-25 25-40 Above 40A 6 6 3 8B 5 0 0 0C 1 1 1 0D 0 2 0 0E 0 2 0 1F 0 0 0 0G 3 5 2 9H 0 1 0 0I 5 8 10 16A–Association with movies and music stars E-Association with CultureB- Association with Sports Stars F-Schemes IntroducedC-Association with Sports G-Advertising CampaignD-Association with Eating Joints H-Events Conducted / Sponsored
I -Friends
The main motivator for females in the age group 12-18 is association with movies
& music (celebrities).Respondents in the age group 18-25 feel that their main
motivator is their friend circle followed by association with movies & music
(celebrities) and advertising campaigns. The respondents in the age group 25-40
agree in toto with respondents in the age group 18-25 in this regard. The last
group feels that their main motivator is friend circle followed by advertising
campaigns & association with movies & music (celebrities).
GENDER: MALE
Factors Age Group
12-18 18-25 25-40 Above 40A 2 3 6 0B 2 3 6 2C 1 3 3 2D 0 0 0 0E 0 4 0 1F 0 2 0 0G 4 12 3 2H 0 0 0 0I 4 9 8 3A–Association with movies and music stars E-Association with CultureB- Association with Sports Stars F-Schemes IntroducedC-Association with Sports G-Advertising CampaignD-Association with Eating Joints H-Events Conducted / Sponsored
I -Friends
The main motivator for males in the age group 12-18 is friend circle and
advertising campaigns. Respondents in the age group 18-25 feel that their main
motivator is their advertising campaigns followed by their friend circle .The
respondents in the age group 25-40feel that their friend circle plays a very
important role followed by advertising and association with sports .The last group
feels that their main motivator is their friend circle.
BRAND PREFERENCE BETWEEN COKE AND PEPSI
GENDER: MALE
Brand Age Group
12-18 18-25 25-40 Above 40
Pepsi 9 21 12 8
Coke 4 15 14 2
This graph indicates that the preference for Pepsi is greater than that of Coke
excepting the age group 25-40.
GENDER: FEMALE
Brand Age Group
12-18 18-25 25-40 Above 40
Pepsi 12 14 12 19
Coke 8 10 7 15
This graph indicates that the preference for Pepsi is greater than that of Coke in
all age groups.
PRODUCTION AND SERVICE PREFERENCE ANALYSIS
GENDER : MALE
AGE GROUP 12-18
Pepsi Coke
Outstanding
Very good
Good Bad Outstanding
Very good
Good Bad
Taste 8 1 0 0 4 0 0 0
Scheme 4 3 1 0 2 2 0 0
Adds 9 0 0 0 4 0 0 0
Packaging
2 7 0 0 3 1 0 0
Customer care
0 0 9 0 0 4 0 0
AGE GROUP 18-25
Pepsi Coke
Outstanding
Very good
Good Bad Outstanding
Very good
Good Bad
Taste 20 1 0 0 13 2 0 0
Scheme 19 1 1 0 12 3 0 0
Adds 21 0 0 0 15 0 0 0
Packaging
18 2 1 0 13 2 0 0
Customer care
17 4 0 0 15 0 0 0
AGE GROUP 25-40
Pepsi Coke
Outstanding
Very good
Good Bad Outstanding
Very good
Good Bad
Taste 12 0 0 0 14 0 0 0
Scheme 10 2 0 0 8 6 0 0
Adds 12 0 0 0 14 0 0 0
Packaging
9 2 1 0 7 5 2 0
Customer care
12 0 0 0 0 14 0 0
AGE GROUP Above 40
Pepsi Coke
Outstanding
Very good
Good Bad Outstanding
Very good
Good Bad
Taste 8 0 0 0 2 0 0 0
Scheme 7 1 0 0 2 0 0 0
Adds 8 0 0 0 2 0 0 0
Packaging
6 2 0 0 2 0 0 0
Customer care
8 0 0 0 2 0 0 0
CUMULATIVE FIGURES OF MALE PREFERENCES
Outstanding
Very good
Good Bad Outstanding
Very good
Good Bad
Taste 47 2 0 0 33 2 0 0
Scheme 40 6 2 0 22 13 0 0
Adds 50 0 0 0 35 0 0 0
Packaging 35 13 2 0 25 8 2 0
Customer care
37 4 9 0 0 31 4 0
PEPSI COKE
GENDER FEMALE
AGE GROUP 12-18
Pepsi Coke
Outstanding
Very good
Good Bad Outstanding
Very good
Good Bad
Taste 12 0 0 0 8 0 0 0
Scheme 10 2 0 0 6 2 0 0
Adds 12 0 0 0 8 0 0 0
Packaging 9 3 0 0 8 0 0 0
Customer care
0 10 2 0 6 1 1 0
AGE GROUP 18-25
Pepsi Coke
Outstanding
Very good
Good Bad Outstanding
Very good
Good Bad
Taste 14 0 0 0 10 0 0 0
Scheme 11 2 1 0 10 0 0 0
Adds 14 0 0 0 6 4 0 0
Packaging
9 2 3 0 7 2 1 0
Customer care
4 3 7 0 10 0 0 0
AGE GROUP 25-40
Pepsi Coke
Outstanding
Very good
Good Bad Outstanding
Very good
Good Bad
Taste 12 0 0 0 2 0 0 0
Scheme 12 0 0 0 2 0 0 0
Adds 12 0 0 0 2 0 0 0
Packaging
9 3 0 0 2 0 0 0
Customer care
1 5 3 0 2 0 0 0
AGE GROUP ABOVE 40
Pepsi Coke
Outstanding
Very good
Good Bad Outstanding
Very good
Good Bad
Taste 19 0 0 0 15 0 0 0
Scheme 10 8 1 0 9 6 0 0
Adds 19 0 0 0 9 5 1 0
Packaging
10 6 3 0 12 3 0 0
Customer care
8 6 5 0 10 3 2 0
CUMULATIVE FIGURES OF FEMALE PREFERENCES
Outstanding
Very good
Good Bad Outstanding
Very good
Good Bad
Taste 57 0 0 0 35 0 0 0
Scheme 43 12 2 0 27 8 0 0
Adds 57 0 0 0 25 9 2 0
Packaging 37 14 6 0 29 5 1 0
Customer care
13 24 17 0 28 4 3 0
PEPSI COKE
This graph indicates that Pepsi is overall preferred excepting for customer care .
CONCLUSION
Working on this project has been a very effective practical learning process to
me. This project has given me a chance to understand the buying behaviour &
the buying process towards areated drinks. On the basis of all the field work and
table work done, I would like to make a few suggestions which may help the
company in increasing the total market as well as the individual sale of the
company.
Soft drinks retail at prices between Rs. 6 and Rs. 48. This happens to be
expensive when measured against purchasing power, according to one study,
it takes an Indian 50 minutes of work to be able to buy a bottle(300ml) in other
countries, and the norm is five minutes. Thus to increase the total market of
soft drinks and their individual shares, manufactures should try and decrease
the prices, so as to increase sales.
Soft drink cans which are very convenient, as the consumer can take them
anywhere, unlike a bottle, are very expensive retailing from Rs. 15-Rs. 18. To
increase sale of cans, this price should be brought down.
Innovations increase sales of company. for e.g. fountain Pepsi increased
sales of Pepsi, Cans increased sales of Coca-Cola. Therefore the companies
should constantly come out with innovative ideas. e.g. 300 ml plastic bottles,
which the consumer can take with him, unlike the glass bottles, which he has
to return. Plastic bottles can even be used again by households for various
purposes.
It is also recommended that companies should launch soft drink in small pack
150 ml and 100 ml(travel packs for trains)
The soft drink cans and plastic bottles should mention the calories and other
related information on the packing.
It is seen In India, that people prefer having their drinks with or after food. So
Companies should have commercials, which show people enjoying their drink
with a good meal, so that consumers associate drinking soft drinks while
having their meals.
Companies should try to educate the consumer about the health-related
subject. For e.g.: - doctors recommend Limca to patients. Cola drinks are
known to be very fattening, but in fact cola drinks contain no calories from fat
they contain calories from sugar which can be easily burned off.
Companies have to put more and more visi-coolers, counters, ice box etc. to
gain more loyalty of shopkeepers.
It is observed that the preference & demand for other flavours is zero, so it is
advised that the company should take dramatic steps in promoting them.
BIBILOGRAPHYBIBILOGRAPHY
1) Text books:
a) Marketing Management 10th edition by Phillip Kotler
b) Principles of Marketing 8th edition by Phillip Kotler &Gary Armstrong.
c) Market Research by W. Boyd Jr, Ralph Westfall, and Stanley F.Stasch.
d) Elements of Marketing Research by Pradeep Kumar.
e) Jack Straight from the Gut by Jack Welch.
2) Business & General Interest Magazines:
a) Business Today
b) Advertising & Marketing
c) Business India
d) Business World
e) Outlook
f) India Today
3) News Papers
a) Hindustan Times
b) Times of India
c) Economic Times
d) Financial Express
4) Websites
a) Pepsico.com
b) Pepsiworld.com
c) Indiainfoline.com
QUESTIONNAIRE
Subject: Consumer Behavior
Topic: Comparative analysis between Pepsi & Coke
Personal Information:(A) Name:___________________________________________________(B) Address: _________________________________________________(C)Phone No: 1) Residence:____________ 2) Office: ________________(D)Age :Between 12-18 Between 18-25 Between 25-40 Above 40 (E) Sex: Male Female
1) Do you have aerated drinks?Yes No
2) How many soft drinks do you consume in a week?a) Between 1-5 b) Between 5-10 c) Above 10
3) Which flavors do u like?a) Cola b) Lemon c) Orange d)Mango e) Others
4) Which brand Comes to your mind? a) Pepsi b) Coke c) Sprite d) 7UP e) Fanta f) Mirinda g) Limca h) Thums UP I) Maaza j) Slice k) Others
6) Which Brand do you prefer? a) Pepsi b) Coke c) Sprite d) 7UP e) Fanta
f) Mirinda g) Limca h) Thums UP I) Maaza j) Slice k) Others
7) What according to you is the strength of your brand?_______________________________________________________________________________________________________________________________________________________________________________________
8) What motivates you to build loyalty towards a particular brand?a) Brand Ambassadors: 1) Movie Stars 2) Music Stars 3) Sportsmen b) Associations with Sports c) Associations with Eating Joints (e.g. pizza hut, McDonalds…)d) Associations with Culture e) Schemes offered f) Advertisement campaigns g) Events carried out h) Friend circle i) Others __________________________________________________
9) With what would you like to associate your brand with?__________________________________________________________________________________________________________________________________________________________________________________________
10)Which T.V Commercial appeals to you the most and why?(Soft drinks)__________________________________________________________________________________________________________________________________________________________________________________________
11)Which brand according to you has the most effective punch line and why?_______________________________________________________________________________________________________________________________________________________________________________________
12)What demotivates you from buying other brands?__________________________________________________________________________________________________________________________
13)Given a choice between Pepsi & Coke what would you prefer and why?_______________________________________________________________________________________________________________________________________________________________________________________
14)Please grade them on the basis of your experiencesPepsi Coke
Outstanding Good Average Bad Outstanding Good Average Bad
a) Taste b) Schemes c) Adds d) Packaging e) Customer Care
