Jeet Kaushik

Report on summer training Comparative study of market share of coca-cola & Pepsi-co

Submitted to lovely professional university In partial fulfillment of the Requirements for the award of degree of Master of business administration

Submitted by JITENDRA KAUSHIK University registration no.-10808434

DEPARTMENT OF MANAGEMENT LOVELY PROFESSIONAL UNIVERSITY PHAGWARA

(2008-10)

DECLARATION

I, jitendra kaushik hereby declare that the dissertation entitled “Comparative Study of market share of Coca-Cola & Pepsi” is the result of my original work and the same has not been previously submitted to any examination of this university, and the dissertation will be liable to be rejected and / or cancelled, if found otherwise. Whatever data have been collected they are based on original facts & figures.

Place: jalandhar Date:

Jitendra kaushik MBA 3RD SEM Reg. no.-

10808434

Acknowledgement A hearty thanks to all those who support me…………. Acknowledging any one in mere word is a very difficult job. I would like to pay my sincere thanks to all those people who helped me during this project work for their guidance and invaluable advice. First and foremost, I express my sincere ineptness to the almighty for bestowing me with favorable circumstances and keeping me in the high spirits. This project is the end of the product of valuable contribution of the many persons to whom, I remain indebted. This research would not have been possible without the support of my training coordinator lokesh jas rai Therefore it is a great pleasure to acknowledge the support. he was there guide to me at every step. I would also like to thank other faculty members of LBC like Mr. kailash pareek who made me capable of performing this valuable task. I am highly thankful to all the people, related directly or indirectly and the respondents for being cooperative and sparing a few moments from their busy schedule; without whose help this project wouldn’t have proven meaningful.

Jitendra kaushik Lovely Professional University (Phagwara)

Faculty Signatures

Table of contents Page no. Chapter no.

Description

Chapter-1 1

1

Introduction •

Theoretical foundation

2

Review of literature

5

3

Chapter-2

8

Overview of the industry Profile of the organization The Coca-Cola company Achievements & milestones of the Coca-Cola Profile of the Pepsi company Product range of the industry Performance of the Coca-Cola over the last few years

Chapter-3 4

Objectives of the study & research methodology

64

Chapter-4 5

Data presentation, analysis and interpretation

68

Chapter-5 6

Summary. conclusion, & recommendations

75

Bibliography 7

80

Annexure

81

List of Diagrams

S no.

Graph

Page no.

1

Beverage industry in India

10

2

Vision for sustainable growth

21

3

Organization structure of coca-cola in India

33

4

Sales department in India

35

5

Manufacturing unit of L.B

36

6

Manufacturing process at L.B

37

Graphs

1 Area wise graph

68

Best brand graph

73

2

3

Over all graph

74

EXECUTIVE SUMMARY Coca-Cola, the product that has given the world its best-known taste was born in Atlanta, Georgia, on May 8, 1886. Coca-Cola Company is the world’s leading manufacturer, marketer and distributor of non-alcoholic beverage concentrates and syrups, used to produce nearly 400 beverage brands. It sells beverage concentrates and syrups to bottling and canning operators, distributors, fountain retailers and fountain wholesalers. Coca-Cola was first introduced by John Syth Pemberton, a pharmacist, in the year 1886 in Atlanta, Georgia when he concocted caramelcolored syrup in a three-legged brass kettle in his backyard. He first “distributed” the product by carrying it in a jug down the street to Jacob’s Pharmacy and customers bought the drink for five cents at the soda fountain. Carbonated water was teamed with the new syrup, whether by accident or otherwise, producing a drink that was proclaimed “delicious and refreshing”, a theme that continues to echo today wherever Coca-Cola is enjoyed.

Coca-Cola originated as a soda fountain beverage in 1886 selling for five cents a glass. Early growth was impressive, but it was only when a strong bottling system developed that CocaCola became the world-famous brand it is today. In the new liberalized and deregulated environment in 1993, Coca-Cola made its re-entry into India through its 100% owned subsidiary, lbh, the Indian bottling arm of the Coca-Cola Company. The main objective of this study lies in understanding the organization and studying and understanding the consumers’ perception and opinion about the latest product, Minute Maid Pulpy Orange, introduced into India, by the Coca-Cola Company. A consumer sampling involving 5.5 lakh people was conducted in a span of 30 days across major cities in order to give the product the required marketing push and to recognize the prospective consumers and their opinion in order to develop and market the product in a better way in the near future. The methodology used in studying and understanding the perceived views of consumers towards the product was ‘SAMPLING’. The findings of the activity have been drawn out in form of graphs and suggestions have been offered there from . Thus it can be concluded that soft drink industry in India is growing day by day. According to the my research I have observed that consumer preference as well as market share of Coca Cola is higher than Pepsi in jalandhar market. This thing also applicable for all over the Indian market also.

INTRODUCTION TO THE SUBJECT Theoretical foundation:Market share, in strategic management and marketing is, according to Carlton O'Neal, the percentage or proportion of the total available market or market segment that is being serviced by a company . It can be expressed as a company's sales revenue (from that market) divided by the total sales revenue available in that market. It can also be expressed as a company's unit sales volume (in a market) divided by the total volume of units sold in that market. It is generally necessary to commission market research (generally desk/secondary research, although sometimes primary research) to estimate the total market size and a company's market share. Increasing market liability is one of the most important objectives used in business. The main advantage of using market share is that it abstracts from industry-wide macro environmental variables such as the state of the economy, or changes in tax policy. According to the national environment, the respective share of different companies changes and hence this causes change in the share market values; the reason can be political ups and

downs, any disaster, any happening or mis-happening. Other objectives include return on investment (ROI), return on assets (ROA), and target rate of profit. Market share is the portion or percentage of sales of a particular product or service in a given region that are controlled by a company. If, for example, there are 100 widgets sold in a country and company A sells 43 of them, then company A has a 43% market share. You can also calculate market share using revenue instead of units sold. If company A sold widgets for a total cost of $860 and the people in the country spend a total of $2,000 on the same widgets, then the market share is $860/$2,000 or 43%. The two different methods of calculating market share won't always provide the same answer, because different companies may charge slightly different prices for the same type of widget. Market share is used by businesses to determine their competitive strength in a sector as compared to other companies in the same sector. It also allows you to accurately assess your performance from year to year. If you only use sales to measure your performance, then you don't take into account the market conditions that may have improved or decreased your sales. Your sales may have gone up because of increased popularity of your type of widget, or they may have gone down because of a drought or recession. Since those factors are beyond your control, they don't give you meaningful information about how you are actually doing as a company in terms of improving your business. By measuring market share, you can see if you are doing better or worse compared to other companies that are facing the same challenges and opportunities that you are. There are four basic ways you can improve your market share. You can improve your product so that it is better than your competitors or you can change the price or offer special incentives for buyers, such as discounts or sales. Alternatively, you can find new methods to distribute your product so people can buy it in more places. Finally, you can advertise and promote your product. Using these techniques in any combination may improve market share. Increased market share is not always the best solution for businesses. It might not be profitable if it is associated with expensive advertising or a big price decrease. A company may not be able to meet the demand of an increased market share without huge investments in new equipment and employees.

In some cases it can be to a company's advantage to decrease market share, if the lower costs of lower market share can improve profitability. Managing market share, therefore, is a very important aspect of managing a business. Market share refers to the percentage of the overall volume of business in a given market that is controlled by one company in relation to its competitors. For example, if the total sales of a certain product in a market are $100, 000, and the company in question sold $20, 000 worth of that product, then the company had 20 percent market share. Market share is most meaningful in a relative sense; that is, when a company compares the market share it commands to the percentage held by its largest competitors. "The important factor in computing relative market share is not the exact number associated with the sales volume, " Kenneth J. Cook wrote in his book The AMA Complete Guide to Strategic Planning for Small Business. "Your position relative to the competition is more important. You want to know basically if they dominate you, if you are relatively equal in size, or if you dominate them." To calculate market share, a small business owner first needs to determine the total sales of a product in a target market over a specific time period, usually one year. Then the small business owner needs to calculate the total sales achieved by his or her company in that market over the same time period. It may also be useful to find out the sales level achieved by the company's largest competitors and then use that information to compute relative market share. Information on the overall size of markets is usually available through industry associations, which commonly track both sales and growth rates. If competing firms happen to be publicly owned, their sales figures can usually be gleaned from their annual reports. Otherwise, the small business owner may be need to make an educated guess based on his or her knowledge of each competitor and on information provided by the company's customers and sales staff.

Applications of Market Share Information Many companies use market share as a managerial objective—i.e., a company might try to gain a specified share of the market by a certain time. Market share can be a useful objective in that it forces small business owners to pay attention to the overall market and to the actions of competitors. It is also easier to measure than some other common objectives, such as maximizing profits. But there are some potential pitfalls associated with setting a company objective of increasing market share. For example, a company may be tempted to set too low a price to achieve this goal, even though a larger sales volume does not always lead to higher profits. Another application of market share information is in evaluating a company's competitive position in an industry in order to formulate an effective strategy. Information on a firm's relative market share—which indicates its competitive position—can be combined with information on the growth rate and attractiveness of the industry to determine the best future positioning of the firm. If both the company's competitive position and the industry's attractiveness and growth rate are strong, then the company occupies a fortunate position and is known as a "star." The most appropriate strategy for star companies is to exploit their competitive advantage and protect themselves against new competitors entering the industry. If both the company's competitive position and the industry's attractiveness and growth rate are weak, then the company is in an unfortunate position and is known as a "dog." The potential for market growth is limited, and the company's future prospects in the industry do not appear promising.

The most appropriate strategy for a dog company is to limit spending, generate as much cash as possible in the short term, and consider exiting the industry. If a company holds a strong position in a weak industry, it is known as a "cash cow." The best strategy for companies in this situation is to milk the market for cash while not expending too many resources. Finally, if a company occupies a weak competitive position in a strong industry, it is known as a "question mark." The business owners have important strategic decisions to make. Although there is strong future potential in the industry, the company's weak position means that it will have to make a significant investment to take advantage of the opportunity presented. In this case, it is particularly important for the business owner to understand his or her customers and competitors to determine whether it will be possible for the company to develop a competitive advantage. Here we are going to know or calculate the market share of the coca-cola & Pepsi.

REVIEW THE LITERATURE Control of market share is the key issue in this study. The situation is both Coke and Pepsi are trying to gain market share in this beverage market, which is valued at over $30 billion a year. Just how this is done in such a competitive market is the underlying issue. The facts are that each company is coming up with new products and ideas in order to increase their market share. The creativity and effectiveness of each company's marketing strategy will ultimately determine the winner with respect to sales, profits, and customer loyalty. Not only are these two companies constructing new ways to sell Coke and Pepsi, but they are also thinking of ways in which to increase market share in other beverage categories. Although the goal of both companies is exactly the same, the two companies rely on somewhat different marketing strategies. Both companies have also relied on finding new markets, especially in foreign countries. In the foreign markets, Coke has been more successful than Pepsi. For example, in Eastern Europe, Pepsi has relied on a barter system that proved to fail. However, in certain countries that allow direct comparison, Pepsi has beat Coke. In foreign markets, both companies have followed the marketing concept by offering products that meet consumer needs in order to gain market share. Both companies cannot just sell one product; if they do they will not succeed. They have to always be creating and updating their marketing plans and products. The companies must be willing to accommodate their target market gaining market share. occurs when a company stays one-step ahead of the competition by knowing what the consumer wants. Apart from this study previous studies were based on the distribution network and market share of some of these beverages companies. This study is based on to find out the market share of coca-cola in some of the areas of jalandhar city. Pepsi is often second to Coke in terms of sales, but outsells Coca-Cola in some localities. Around the world, some local brands do compete with Coke.

In India, Coca-Cola ranked third behind the leader, Pepsi-Cola, and local drink Thums Up. However, The Coca-Cola Company purchased Thums Up in 1993. As of 2004, Coca-Cola held a 60.9% market-share in India. Tropicola, a domestic drink, is served in Cuba instead of Coca-Cola, in which there exists a United States embargo. Mecca Cola and Qibla Cola, in the Middle East, is a competitor to Coca-Cola. In Turkey, Cola Turka is a major competitor to Coca-Cola. In Iran and also many countries of Middle East, Zam Zam Cola and Parsi Cola are major competitors to Coca-Cola. Coca-Cola Co. slightly increased its lead over rival Pepsi-Cola Co. in 2002, thanks to the successful launch of Vanilla Coke and the growth of Diet Coke, according to U.S. soft drink industry rankings released last week. Coke gained 0.6 percentage points in market share and increased its case volume by 2.1 percent, according to Beverage Digest/Maxwell, a New York-based industry newsletter and data service. The company captured a larger share of the market even though its Coke Classic brand fell 0.6 percentage points in market share. Coca-Cola dominates 44.3 percent of the U.S. soft drink market, but saw its market share drop between 1999 and 2001. With the latest gains, it's only 0.2 percentage points away from where it stood in 1998 at 44.5. Pepsi-Cola lost 0.2 percentage points in market share. The No. 2 company commands 31.4 percent of the U.S. soft drink market. In 1990, when Indian government opened the market to multinationals, Pepsi was the first to come in. Thums Up went up against the international giant for an intense onslaught with neither side giving any quarter. With Pepsi roping in major Indian movie stars like Juhi Chawla, to thwart the Indian brand, Thums Up increased its spending in the Cricket sponsorship. Then the capacity went from 250ml to 300ml, aptly named MahaCola. This nickname gained popularity in smaller towns where people would ask for "Maha Cola" instead of Thums Up. The consumers were divided where some felt the pepsimild test was rather bland. In 1993 Coca-Cola re-entered India after prolonged absences from 1977 to 1993. But cocacola’s entry made things even more complicated and the fight become a three way bttle. That same year, in a move that baffled many, Parle sold out to Coke for a meager US$ 60 million (considering the market share it had). Some assumed Parle had lost the appetite for a

fight against the two largest cola brands; others surmised that the international brands seemingly endless cash reserves psyched-out Parle. Either way, it was now Coca-cola’s and coke hs a habit of killing trands in it portfolio that might overshadow it. Coca-Cola soon introduced its cola in cans which was all the rage in India, with Thums Up introduced alongside, albeit in minuscule numbers. Later Coca-Cola started pulling out the Thums Up brand which at that time still had more than 30% market share.

Overview of the industry

A BRIEF INSIGHT- THE FMCG INDUSTRY IN INDIA Fast Moving Consumer Goods (FMCG), also known as Consumer Packaged Goods (CPG) are products that have a quick turnover and relatively low cost. Consumers generally put less thought into the purchase of FMCG than they do for other products. The Indian FMCG industry witnessed significant changes through the 1990s. Many players had been facing severe problems on account of increased competition from small and regional players and from slow growth across its various product categories. As a result, most of the companies were forced to revamp their product, marketing, distribution and customer service strategies to strengthen their position in the market. By the turn of the 20th century, the face of the Indian FMCG industry had changed significantly. With the liberalization and growth of the Indian economy, the Indian customer witnessed an increasing exposure to new domestic and foreign products through different media, such as television and the Internet. Apart from this, social changes such as increase in the number of nuclear families and the growing number of working couples resulting in increased spending power also contributed to the increase in the Indian consumers' personal consumption. The realization of the customer's growing awareness and the need to meet changing requirements and preferences on account of changing lifestyles required the FMCG producing companies to formulate customer-centric strategies. These changes had a positive impact, leading to the rapid growth in the FMCG industry. Increased availability of retail space, rapid urbanization, and qualified manpower also boosted the growth of the organized retailing sector. HLL led the way in revolutionizing the product, market, distribution and service formats of the FMCG industry by focusing on rural markets, direct distribution, creating new product, distribution and service formats. The FMCG sector also received a boost by government led initiatives in the 2003 budget such as the setting up of excise free zones in various parts of

the country that witnessed firms moving away from outsourcing to manufacturing by investing in the zones. Though the absolute profit made on FMCG products is relatively small, they generally sell in large numbers and so the cumulative profit on such products can be large. Unlike some industries, such as automobiles, computers, and airlines, FMCG does not suffer from mass layoffs every time the economy starts to dip. A person may put off buying a car but he will not put off having his dinner. Unlike other economy sectors, FMCG share float in a steady manner irrespective of global market dip, because they generally satisfy rather fundamental, as opposed to luxurious needs. The FMCG sector, which is growing at the rate of 9% is the fourth largest sector in the Indian Economy and is worth Rs.93000 crores. The main contributor, making up 32% of the sector, is the South Indian region. It is predicted that in the year 2010, the FMCG sector will be worth Rs.143000 crores. The sector being one of the biggest sectors of the Indian Economy provides up to 4 million jobs. (Source: HCCBPL, Monthly Circular, March) The FMCG sector consists of the following categories:

•

Personal Care- Oral care, Hair care, Wash (Soaps), Cosmetics and Toiletries, Deodorants and Perfumes, Paper products (Tissues, Diapers, Sanitary products) and Shoe care; the major players being; Hindustan Lever Limited, Godrej Soaps, Colgate, Marico, Dabur and Procter & Gamble.

•

Household Care- Fabric wash (Laundry soaps and synthetic detergents), Household cleaners (Dish/Utensil/Floor/Toilet cleaners), Air fresheners, Insecticides and Mosquito repellants, Metal polish and Furniture polish; the major players being; Hindustan Lever Limited, Nirma and Ricket Colman.

•

Branded and Packaged foods and beverages- Health beverages, Soft drinks, Staples/Cereals, Bakery products (Biscuits, Breads, Cakes), Snack foods, Chocolates, Ice-creams, Tea, Coffee, Processed fruits, Processed vegetables, Processed meat,

Branded flour, Bottled water, Branded rice, Branded sugar, Juices; the major players being; Hindustan Lever Limited, Nestle, Coca-Cola, Cadbury, Pepsi and Dabur

BEVERAGE INDUSTRY IN INDIA: A BRIEF INSIGHT

In India, beverages form an important part of the lives of people. It is an industry, in which the players constantly innovate, in order to come up with better products to gain more consumers and satisfy the existing consumers.

BEVERAGES Carbonated Non-Cola Alcoholic Non-Alcoholic NonCola Carbonated

FIGURE 1: BEVERAGE INDUSTRY IN INDIA

The beverage industry is vast and there various ways of segmenting it, so as to cater the right product to the right person. The different ways of segmenting it are as follows:

➢ Alcoholic, non-alcoholic and sports beverages

➢ Natural and Synthetic beverages

➢ In-home consumption and out of home on premises consumption.

➢ Age wise segmentation i.e. beverages for kids, for adults and for senior citizens

➢ Segmentation based on the amount of consumption i.e. high levels of consumption and low levels of consumption.

If the behavioral patterns of consumers in India are closely noticed, it could be observed that consumers perceive beverages in two different ways i.e. beverages are a luxury and that beverages have to be consumed occasionally. These two perceptions are the biggest challenges faced by the beverage industry. In order to leverage the beverage industry, it is important to address this issue so as to encourage regular consumption as well as and to make the industry more affordable.

Four strong strategic elements to increase consumption of the products of the beverage industry in India are:

➢ The quality and the consistency of beverages needs to be enhanced so that consumers are satisfied and they enjoy consuming beverages.

➢ The credibility and trust needs to be built so that there is a very strong and safe feeling that the consumers have while consuming the beverages. ➢ Consumer education is a must to bring out benefits of beverage consumption whether in terms of health, taste, relaxation, stimulation, refreshment, well-being or prestige relevant to the category.

➢ Communication should be relevant and trendy so that consumers are able to find an appeal to go out, purchase and consume.

The beverage market has still to achieve greater penetration and also a wider spread of distribution. It is important to look at the entire beverage market, as a big opportunity, for brand and sales growth in turn to add up to the overall growth of the food and beverage industry in the economy.

HISTORY IN BRIEF:Coca-Cola was first introduced by John Syth Pemberton, a pharmacist, in the year 1886 in Atlanta, Georgia when he concocted caramel-colored syrup in a three-legged brass kettle in his backyard. He first “distributed” the product by carrying it in a jug down the street to Jacob’s Pharmacy and customers bought the drink for five cents at the soda fountain. Carbonated water was teamed with the new syrup, whether by accident or otherwise, producing a drink that was proclaimed “delicious and refreshing”, a theme that continues to echo today wherever Coca-Cola is enjoyed.

Dr. Pemberton’s partner and book-keeper, Frank M. Robinson, suggested the name and penned “Coca-Cola” in the unique flowing script that is famous worldwide even today. He suggested that “the two Cs would look well in advertising.” The first newspaper ad for CocaCola soon appeared in The Atlanta Journal, inviting thirsty citizens to try “the new and popular soda fountain drink.” Hand-painted oil cloth signs reading “Coca-Cola” appeared on store awnings, with the suggestions “Drink” added to inform passersby that the new beverage was for soda fountain refreshment.

By the year 1886, sales of Coca-Cola averaged nine drinks per day. The first year, Dr. Pemberton sold 25 gallons of syrup, shipped in bright red wooden kegs. Red has been a distinctive color associated with the soft drink ever since. For his efforts, Dr. Pemberton

grossed $50 and spent $73.96 on advertising. Dr. Pemberton never realized the potential of the beverage he created. He gradually sold portions of his business to various partners and, just prior to his death in 1888, sold his remaining interest in Coca-Cola to Asa G. Candler, an entrepreneur from Atlanta. By the year 1891, Mr. Candler proceeded to buy additional rights and acquire complete ownership and control of the Coca-Cola business. Within four years, his merchandising flair had helped expand consumption of Coca-Cola to every state and territory after which he liquidated his pharmaceutical business and focused his full attention on the soft drink. With his brother, John S. Candler, John Pemberton’s former partner Frank Robinson and two other associates, Mr. Candler formed a Georgia corporation named the Coca-Cola Company. The trademark “Coca-Cola,” used in the marketplace since 1886, was registered in the United States Patent Office on January 31, 1893.

The business continued to grow, and in 1894, the first syrup manufacturing plant outside Atlanta was opened in Dallas, Texas. Others were opened in Chicago, Illinois, and Los Angeles, California, the following year. In 1895, three years after The Coca-Cola Company’s incorporation, Mr. Candler announced in his annual report to share owners that “Coca-Cola is now drunk in every state and territory in the United States.”

As demand for Coca-Cola increased, the Company quickly outgrew its facilities. A new building erected in 1898 was the first headquarters building devoted exclusively to the production of syrup and the management of the business. In the year 1919, the Coca-Cola Company was sold to a group of investors for $25 million. Robert W. Woodruff became the President of the Company in the year 1923 and his more than sixty years of leadership took the business to unsurpassed heights of commercial success, making Coca-Cola one of the most recognized and valued brands around the world.

HISTORY OF BOTTLING

Coca-Cola originated as a soda fountain beverage in 1886 selling for five cents a glass. Early growth was impressive, but it was only when a strong bottling system developed that CocaCola became the world-famous brand it is today.

YEAR WISE HISTORY OF BOTTLING:

➢ Year 1894: A modest start for a bold idea

In a candy store in Vicksburg, Mississippi, brisk sales of the new fountain beverage called Coca-Cola impressed the store's owner, Joseph A. Biedenharn. He began bottling Coca-Cola to sell, using a common glass bottle called a Hutchinson. Biedenharn sent a case to Asa Griggs Candler, who owned the Company. Candler thanked him but took no action. One of his nephews already had urged that Coca-Cola be bottled, but Candler focused on fountain sales.

➢ Year 1899: The first bottling agreement

Two young attorneys from Chattanooga, Tennessee believed they could build a business around bottling Coca-Cola. In a meeting with Candler, Benjamin F. Thomas and Joseph B.

Whitehead obtained exclusive rights to bottle Coca-Cola across most of the United States for a sum of one dollar. A third Chattanooga lawyer, John T. Lupton, soon joined their venture.

➢ Years 1900-1909: Rapid growth

The three pioneer bottlers divided the country into territories and sold bottling rights to local entrepreneurs. Their efforts were boosted by major progress in bottling technology, which improved efficiency and product quality. By 1909, nearly 400 Coca-Cola bottling plants were operating, most of them family-owned businesses. Some were open only during hot-weather months when demand was high. ➢ Year 1916: Birth of the Contour Bottle

Bottlers worried that Coca-Cola's straight-sided bottle was easily confused with imitators. A group representing the Company and bottlers asked glass manufacturers to offer ideas for a distinctive bottle.

A design from the Root Glass Company of Terre Haute, Indiana won enthusiastic approval. The Contour Bottle became one of the few packages ever granted trademark status by the U.S. Patent Office. Today, it is one of the most recognized icons in the world.

➢ the 1920s: Bottling overtakes fountain sales

As the 1920s dawned; more than 1,000 Coca-Cola bottlers were operating in the U.S. Their ideas and zeal fueled steady growth. Six-bottle cartons were a huge hit starting in 1923. A few years later, open-top metal coolers became the forerunners of automated vending machines. By the end of the 1920s, bottle sales of Coca-Cola exceeded fountain sales.

➢ In the 1920s and 1930s: International expansion

Led by Robert W. Woodruff, chief executive officer and chairman of the Board, the Company began a major push to establish bottling operations outside the U.S. Plants were opened in France, Guatemala, Honduras, Mexico, Belgium, Italy and South Africa. By the time World War II began, Coca-Cola was being bottled in 44 countries. ➢ In the 1940s: Post-war growth

During the war, 64 bottling plants were set up around the world to supply the troops. This followed an urgent request for bottling equipment and materials from General Eisenhower's base in North Africa. Many of these war-time plants were later converted to civilian use, permanently enlarging the bottling system and accelerating the growth of the Company's worldwide business.

➢ In the 1950s: Packaging innovations

For the first time, consumers had choices of Coca-Cola package size and type-the traditional 6.5 ounce Contour Bottle, or larger servings including 10, 12 and 26 ounce versions. Cans were also introduced, becoming generally available in 1960.

➢ In the 1960s: Introduction of new brands

Sprite, Fanta, Fresca and TAB joined brand Coca-Cola in the 1960s. Mr. Pibb and Mello Yello were added in the 1970s. The 1980s brought diet Coke and Cherry Coke, followed by PowerAde and Fruitopia in the 1990s. Today scores of other brands are offered to meet consumer preferences in local markets around the world.

➢ In the 1970s and 1980s: Consolidation to serve customers

Advancement in technology led to global economy, retail customers of The Coca-Cola Company merged and evolved into international mega chains. Such customers required a new approach. In response, many small and medium-size bottlers consolidated to better serve giant international customers. The Company encouraged and invested in a number of bottler consolidations to assure that its largest bottling partners would have capacity to lead the system in working with global retailers.

➢ In the 1990s: New and growing markets

Political and economic changes opened vast markets that were closed or underdeveloped for decades. After the fall of the Berlin Wall, the Company invested heavily to build plants in Eastern Europe. As the century closed, more than $1.5 billion was committed to new bottling facilities in Africa.

➢ 21st Century: Coca-Cola today

The Coca-Cola bottling system grew up with roots deeply planted in local communities. This heritage serves the Company well today as consumers seek brands that honor local identity and the distinctiveness of local markets. As was true a century ago, strong locally based relationships between Coca-Cola bottlers, customers and communities are the foundation on which the entire business grows.

MANIFESTO FOR GROWTH

VALUES:

Coca-Cola is guided by shared values that both the employees as individuals and the Company will live by; the values being:

➢ LEADERSHIP: The courage to shape a better future

➢ PASSION: Committed in heart and mind

➢ INTEGRITY: Be real

➢ ACCOUNTABILITY: If it is to be, it’s up to me

➢ COLLABORATION: Leverage collective genius

➢ INNOVATION: Seek, imagine, create, delight

➢ QUALITY: What we do, we do well

MISSION ➢ To Refresh the World... In body, mind, and spirit

➢ To Inspire Moments of Optimism... Through our brands and our actions

➢ To Create Value and Make a Difference... Everywhere we engage.

VISION FOR SUSTAINABLE GROWTH

➢ PROFIT: Maximizing return to shareowners while being mindful of our overall

responsibilities.

➢ PEOPLE: Being a great place to work where people are inspired to be the best they

can be.

➢ PORTFOLIO: Bringing to the world a portfolio of beverage brands that anticipate

and satisfy peoples’ Desires and needs.

➢ PARTNERS: Nurturing a winning network of partners and building mutual loyalty.

➢ PLANET: Being a responsible global citizen that makes a difference.

FIGURE 2: VISION FOR SUSTAINABLE GROWTH

SOCIAL RESPONSIBILITY coca-cola in India

c

oca-Cola, the corporation nourishing the global community with the world’s largest selling soft drink concentrates since 1886, returned to India in 1993 after a 16 year hiatus, giving a new thumbs up to the Indian soft drink market. In the same year, the Company took over ownership of the nation’s top soft-drink

brand and bottling network. It’s no wonder our brands have assumed an iconic status in the

minds of the world’s consumers.

A Healthy Growth to The Indian Economy

Ever since, Coca-Cola India has made significant investments to build and continually consolidate its business in the country, including new production facilities, waste water treatment plants, distribution systems, and marketing channels.

Coca-Cola India is among the country’s top international investors, having invested more than US$ 1 billion in India in the first decade, and further pledged another US$100 million in 2003 for its operations. A Pure Commitment to The Indian Economy The Company has shaken up the Indian carbonated drinks market greatly, giving consumers the pleasure of world-class drinks to fill up their hydration, refreshment, and nutrition needs. It has also been instrumental

in giving an exponential growth to the country’s job listings. Creating Enormous Job Opportunities With virtually all the goods and services required to produce and market Coca-Cola being made in India, the business system of the Company directly employs approximately 6,000 people, and indirectly creates employment for more than 125,000 people in related industries through its vast procurement, supply, and distribution system.

The Indian operations comprises of 50 bottling operations, 25 owned by the Company, with

another 25 being owned by franchisees. That apart, a network of 21 contract packers manufacture a range of products for the Company.

On the distribution front, 10-tonne trucks – open bay three-wheelers that can navigate the narrow alleyways of Indian cities – constantly keep our brands available in every nook and corner of the country’s remotest areas.

These are only some of the facts that speak about our commitment to the growth of the Indian Economy.

Our promise

The Coca-Cola Company believes our business has always been based on the trust consumers everywhere place in us-trust that is earned by what we do as a corporate citizen and by our ability to live our values as a commercial enterprise.

There is much in our world to celebrate, refresh, strengthen and protect.

Through our actions as local citizens, we strive every day to Refresh the marketplace Enrich the workplace Preserve the environment Strengthen our communities

At the heart of our business is the trust consumers place in us. They rightly expect that we are managing our business according to sound ethical principles, that we are enhancing the health of our communities, and that we are using natural resources responsibly.

Charter - Our Four Guiding Principles of Citizenship

Refresh the marketplaces we will adhere to the highest ethical standards, knowing that the quality of our products, the integrity of our brands and the dedication of our people build trust and strengthen relationships.

We will serve the people who enjoy our brands through innovation, superb customer service, and respect for the unique customs and cultures in the communities where we do business.

Enrich the workplace

We will treat each other with dignity, fairness and respect.

We will foster an inclusive environment that encourages all employees to develop and perform to their fullest potential, consistent with a commitment to human rights in our workplace. The Coca-Cola workplace will be a place where everyone's ideas and contributions are valued, and where responsibility and accountability are encouraged and rewarded.

Preserve the environment

Our approach to environmental issues is guided by a simple principle: We will conduct our business in ways that protect, preserve and enhance the environment.

The Coca-Cola EKO System translates this principle into action by establishing a framework for successfully managing our environmental performance worldwide. Strengthen the community

We will contribute our time, expertise and resources to help develop sustainable communities in partnership with local leaders.

We will seek to improve the quality of life through locally-relevant initiatives wherever we do business.

WATER MANAGEMENT

Water Conservation Jal Tarang- a Festival to celebrate Water & Culture

Coca-Cola India Collaborates with UN-HABITAT to Improve Access to Water & Sanitation in India & Nepal

Kolkata Mayor dedicates Rain Water Harvesting System, launches a film on Water Conservation

Coca-Cola & UN- Habitat to set up 16 Rain Water Harvesting Projects in Madhya Pradesh

Spreading Awareness On Water Conservation At Educational Institutions

Coca-Cola Employees Spearhead Mass Awareness Drive On Water Conservation & PET Recycling On Radio Mirchi

Coca-Cola India dedicates Roof-Top Rain Water Harvesting Project in Jaipur

Think Green, Go Green

Every Drop Counts - International Water Conference, 2007

Statement from Coca-Cola India on the Assessment of Water Resource Management Practices by TERI

World Water Day Celebrations-South Region

Coca-Cola launched two Rain Water Projects launched in Delhi

Coca-Cola launched two Rain Water Projects launched in Delhi

Mayor of Kolkata dedicates Rain Water Harvesting System, launches a film on Water Conservation

Coca-Cola launches Rain Water Harvesting Projects in Gurgaon

Central Region Celebrates World Water Day

Coca-Cola India installs Rain Water Harvesting Structure in Jamshedpur

World Water Day Celebrations-South Region

Coca-Cola celebrates World Water Day with School Children

World Water Day Celebrations!

Coca-Cola India dedicates three Rain Water Harvesting Projects to the Community in Varanasi

Coca-Cola Launches Eight New Rain Water Harvesting Structures

Three Rain Water Harvesting Projects dedicated to the Community

Coca-Cola India Celebrates World Water Day

Coca-Cola India spearheads "Jaladhaare Karavan"

Coca-Cola Foundation supports ’Watershed Development’ Projects in collaboration with CII & ICRISAT

Cola-Cola India wins the Bhadigari award from the Delhi government for its efforts in community development

Coca-Cola india dedicates five new rain water harvesting projects to the community

Rain Water Harvesting in Thar Desert Area with Jal Bhagirathi Foundation

Rain Water Harvesting in Atmakuru - Andhra Pradesh

Rain Water Harvesting in Kerala & Alleviating Water Shortage problem

Rain Water Harvesting in Kaladera - Jaipur

Rajasthan Minister Prof. Sanwar Lal Jat dedicates Sarai Bawari to the community

Coca-Cola organizes a seminar on "Rainwater Harvesting: Socio-Economic Benefits of Creating Water Security"

Catching Water where it Falls

Government of Rajasthan invites Division President to head work group on Water Conservation

Rain Water Harvesting - Select projects with Delhi Govt s. Bhagidari Scheme

Citizenship in action

Preserving Our Environment Coca-Cola Wins Another Gold Award For Its Citizenship Efforts

Coca-Cola Joins Hands To Help The Flood Affected In Bihar

Central Region Celebrates World Water Day

Education Coca-Cola Restores Education & Welfare to the Children in Kashmir Valley

Coca-Cola India installs Rain Water Harvesting Structure in Jamshedpur

Coca-Cola Constructs A New School For Tsunami Affected In Sri Lanka

Health Warangal Meet Ends, Witnesses Active Participation from Rural Youth

Coca-Cola India supports Perfect Health Mela for 5th consecutive year towards its commitment to Health and Wellness

Over 750 participants of Thums Up Rural Games hit the grounds of Gadag, Karnataka

Water Conservation Jal Tarang- a Festival to celebrate Water & Culture

Coca-Cola India Collaborates with UN-HABITAT to Improve Access to Water & Sanitation in India & Nepal

Kolkata Mayor dedicates Rain Water Harvesting System, launches a film on Water Conservation

ORGANIZATION STRUCTURE OF COCA-COLA IN INDIA

FIGURE 4: ORGANIZATION STRUCTURE IN COCA-COLA, INIDA

ORGANIZATION STRUCTURE IN COCA-COLA, INDIA

ORGANIZATION STRUCTURE OF THE SALES DEPARTMENT IN INDIA

MANUFACTURING UNIT OF L.B

Distributors Manufacturing Sales Outlets and Distribution Plant, Operations Ludhiyana

CHAIN FOLLOWED FROM MANUFACTURE TO DISTRIBUTION

MANUFACTURING PROCESS AT L.B

MANUFACTURING PROCESS

The manufacturing of the products of Coca-Cola involves the following steps:

•

Water is received from the River Cauvery and it passes through the water treatment plant, further passing through the sand filter and the activated carbon filter, so as to attain pure cleansed water.

•

In the syrup room, the concentrate received from another bottling plant situated at Pune, is blended with the sugar syrup

•

Once both the water and the final syrup are ready, they are both mixed together and sent to the carbonator section where Carbon Dioxide is added to the mixture to form the final product.

•

On the other hand, simultaneously, the returnable glass bottles are depalletized, inspected and washed for the purpose of filling in the final product in it. This step does not take place in the PET bottle line as the bottles once used are disposed.

•

The product is finally filled in the bottles, crowned (in case of RGB)/ capped (in case of PET bottles), labeled and cased in order to be sent into the warehouse for distribution.

DISTRIBUTION NETWORK

HCCBPL has a wide and well managed network of salesmen appointed for taking up the responsibility of distribution of products to diverse parts of the cities. The distribution channels are constructed in such a way that the demand of customers is fulfilled at the right place and the right time when it is needed by them.

A typical distribution chain at HCCBPL would be: Production --- Plant Warehouse --- Depot Warehouse --- Distribution Warehouse --- Retail Stock --Retail Shelf --- Consumer

The customers of the Company are divided into different categories and different routes, and every salesman is assigned to one particular route, which is to be followed by him on a daily basis. A detailed and well organized distribution system contributes to the efficiency of the salesmen. It also leads to low costs, higher sales and higher efficiency thereby leading to higher profits to the firm.

3.8.1: DISTRIBUTION ROUTES

The various routes formulated by HCCBPL for distribution of products are as follows:

•

Key Accounts: The customers in this category collectively contribute a large chunk of the total sales of the Company. It basically consists of organizations that buy large quantities of a product in one single transaction. The Company provides goods to these customers on credit, payments being made by them after a certain period of time i.e. either a month of half a month. Examples: Clubs, fine dine restaurants, hotels, Corporate houses etc.

•

Future Consumption: This route consists of outlets of Coca-Cola products, wherein a considerable amount of stock is kept in order to use for future consumption. The stock does not exhaust within a day or two, instead as and when required stocks are stacked up by them so as to avoid shortage or non-availability of the product.

Examples: Departmental

stores, Super markets etc.

•

Immediate Consumption: The outlets in this route are those which require stocks on a daily basis. The stocks of products in these outlets are not stored for future use instead, are exhausted on the same day and might run a little into the next day i.e. the products are consumed at a fast pace. Examples: Small sized bars and restaurants, educational institutions etc.

•

General: Under this route, all the outlets that come in a particular area or an area along with its neighboring areas are catered to. The consumption period is not taken into consideration in this particular route.

3.8.2: DISTRIBUTION SYSTEM

•

Direct distribution: In direct distribution, the bottling unit or the bottler partner has direct control over the activities of sales, delivery, and merchandising and local account management at the store level.

•

Indirect distribution: In indirect distribution, an organization which is not part of the Coca-Cola system has control on one or more of the distribution elements (Sales, delivery, merchandising and local account management)

•

Merchandising: Merchandising means communication with the consumer at the point of purchase to convey product benefit, value and Quality. Sales people and delivery personnel both have this responsibility. In certain locations special teams who go into business locations to specifically merchandise our products.

DEPARTMENTS

INVOLVED

IN

THE

PROCESS

The Distribution process mainly consists of three departments:

DISTRIBUTION

•

Distribution Department: It appoints distributors and establishes a distribution network, processes approved sale orders and prepares invoices, arranges logistics and ship products, co-ordinates with distributors for collections and monitors distribution stocks and their set-up.

•

Finance Department: It checks credit limits and approves sales orders in compliance with the credit policy followed by the firm, records collections from distributors, periodically reconciles outstanding balances from distributors, obtains balance confirmation from distributors and follows up outstanding balances.

•

Shipping or Warehousing Department: It dispatches goods as per approved by order, ensures that stocks are dispatched on a FIFO basis, ensures physical control over load out area and updates warehouse stock records in a timely manner.

SWOT ANALYSIS OF L.B

➢ STRENGTHS

➢ DISTRIBUTION NETWORK: The Company has a strong and reliable distribution network. The network is formed on the basis of the time of consumption and the amount of sales yielded by a particular customer in one transaction. The distribution fleet includes different modes of distribution, from 10-tonne trucks to open-bay three wheelers that can navigate through narrow alleyways of Indian cities and trademarked tricycles and pushcarts.

➢ STRONG BRANDS: The products produced and marketed by the Company have a strong brand image. People all around the world recognize the brands marketed by the Company. Strong brand names like Sprite, Fanta, Limca, Thums Up and Maaza add up to the brand name of the Coca-Cola Company as a whole. The red and white Coca-Cola is one of the very

few things that are recognized by people all over the world. Coca-Cola has been named the world's top brand for a fourth consecutive year in a survey by consultancy Interbrand.

➢ LOW COST OF OPERATIONS: The production, marketing and distribution systems are very efficient due to forward planning and maintenance of consistency of operations which minimizes wastage of both time and resources leads to lowering of costs.

WEAKNESSES

➢ LOW EXPORT LEVELS: The brands produced by the company are brands produced worldwide thereby making the export levels very low. In India, there exists a major controversy concerning pesticides and other harmful chemicals in bottled products including Coca-Cola. In 2003, the Centre for Science and Environment (CSE), a non-governmental organization in New Delhi, said aerated waters produced by soft drinks manufacturers in India, including multinational giants PepsiCo and Coca-Cola, contained toxins including lindane, DDT, malathion and chlorpyrifos- pesticides that can contribute to cancer and a breakdown of the immune system. Therefore, people abroad, are apprehensive about CocaCola products from India.

➢ SMALL SCALE SECTOR RESERVATIONS LIMIT ABILITY TO INVEST AND ACHIEVE ECONOMIES OF SCALE: The Company’s operations are carried out on a small scale and due to Government restrictions and ‘red-tapism’, the Company finds it very difficult to invest in technological advancements and achieve economies of scale.

➢ OPPORTUNITIES

➢ LARGE DOMESTIC MARKETS: The domestic market for the products of the Company is very high as compared to any other soft drink manufacturer. Coca-Cola India claims a 58 per cent share of the soft drinks market; this includes a 42 per cent share of the cola market. Other products account for 16 per cent market share, chiefly led by Limca. its plans to cover one lakh outlets for the coming summer season .

➢ EXPORT POTENTIAL: The Company can come up with new products which are not manufactured abroad, like Maaza etc and export them to foreign nations. It can come up with strategies to eliminate apprehension from the minds of the people towards the Coke products produced in India so that there will be a considerable amount of exports and it is yet another opportunity to broaden future prospects and cater to the global markets rather than just domestic market.

➢ HIGHER INCOME AMONG PEOPLE: Development of India as a whole has lead to an increase in the per capita income thereby causing an increase in disposable income. Unlike olden times, people now have the power of buying goods of their choice without having to worry much about the flow of their income. The beverage industry can take advantage of such a situation and enhance their sales.

➢ THREATS

➢ IMPORTS: As India is developing at a fast pace, the per capita income has increased over the years and a majority of the people are educated, the export levels have gone high. People understand trade to a large extent and the demand for foreign goods has increased over the years. If consumers shift onto imported beverages rather than have beverages manufactured within the country, it could pose a threat to the Indian beverage industry as a whole in turn affecting the sales of the Company.

➢ TAX AND REGULATORY SECTOR: The tax system in India is accompanied by a variety of regulations at each stage on the consequence from production to consumption. When a license is issued, the production capacity is mentioned on the license and every time the production capacity needs to be increased, the license poses a problem. Renewing or

updating a license every now and then is difficult. Therefore, this can limit the growth of the Company and pose problems.

➢ SLOWDOWN IN RURAL DEMAND: The rural market may be alluring but it is not without its problems: Low per capita disposable incomes that is half the urban disposable income; large number of daily wage earners, acute dependence on the vagaries of the monsoon; seasonal consumption linked to harvests and festivals and special occasions; poor roads; power problems; and inaccessibility to conventional advertising media. All these problems might lead to a slowdown in the demand for the company’s products.

PROFILE OF THE PEPSI-CO COMPANY

History Pepsi-co in India

PEPSICO INTERNATIONAL HISTORY OF PEPSICO

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 drugstore soda fountain.

1898--One of Caleb's formulations, known as "Brad's Drink," a combination of carbonated water, sugar, vanilla, rare oils and cola nuts, is renamed "Pepsi-Cola" on August 28, 1898. Pepsi-Cola receives its frist logo.

1902-- Bradham applies for a trademark with the U.S. Patent Office, Washington D.C., and forms the first Pepsi-Cola Company.

1905--Pepsi-Cola's first bottling franchises are established in Charlotte and Durham, North Carolina. Pepsi receives its new logo, its first change since 1898.

1934--A landmark year for Pepsi-Cola. The drink is a hit and to attract even more sales, the company begins selling its 12-ounce drink for five cents (the same cost as six ounces of competitive colas). Caleb Bradham, the founder of Pepsi-Cola and "Brad's Drink," dies at 66 (May 27th, 1867February 19th, 1934).

1941--The New York Stock Exchange trades Pepsi's stock for the first time. In support of the war effort, Pepsi's bottle crown colors change to red, white, and blue.

1960--Young adults become the target consumers and Pepsi's advertising keeps pace with "Now it's Pepsi, for those who think young."

1963-- Pepsi-Cola continues to lead the soft drink industry in packaging innovations, when the 12-ounce bottle gives way to the 16-ounce size

Twelve-ounce Pepsi cans are first introduced to the military to transport soft drinks all over

the world.

1965--Expansion outside the soft drink industry begins. Frito-Lay of Dallas, Texas, and Pepsi-Cola merge, forming PepsiCo, Inc.

Military 12-ounce cans are such a success that full-scale commercial distribution begins.

1970--Pepsi introduces the industry's first two-liter bottles. Pepsi is also the first company to respond to consumer preference with light-weigh, recyclable, plastic bottles.

1984--Pepsi advertising takes a dramatic turn as Pepsi becomes "the choice of a New Generation."

1985--After responding to years of decline, Coke loses to Pepsi in preference tests by reformulating. However, the new formula is met with widespread consumer rejection, forcing the re-introduction of the original formulation as "Coca-Cola Classic."

The cola war takes "one giant sip for mankind," when a Pepsi "space can" is successfully tested aboard the space shuttle.

1991-- Pepsi introduces the first beverage bottles containing recycled polyethylene terephthalate (or PET) into the marketplace. The development marks the first time recycled plastic is used in direct contact with food in packaging.

1992-- Pepsi-Cola and Lipton Tea Partnership is formed. Pepsi will destribute single serve Lipton Original and Lipton Brisk products.

1994-- Pepsi Foods International and Pepsi-Cola International merge, creating the PepsiCo Foods and Beverages Company.

1997-- PepsiCo. announces that it will spin off its restaurant division to form Tricon Global Restaurants, Inc. Including Pizza Hut, Taco Bell, & KFC, it will be the largest restaurant company in the world in units and second-largest in sales.

1998-- Pepsi celebrates its 100th anniversary.

PEPSICO – THE PARENT COMPANY PepsiCo, Inc. is one of the world's largest food and beverage companies. The company's principal businesses include: •

Frito-Lay snacks

•

Pepsi-Cola beverages

•

Gatorade sports drinks

•

Tropicana juices

•

Quaker Foods

PepsiCo, Inc. was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay. Tropicana was acquired in 1998. In 2001, PepsiCo merged with the Quaker Oats Company, creating the world’s fifth-largest food and beverage company, with 15 brands – each generating more than $1 billion in annual retail sales. PepsiCo’s success is the result of superior products, high standards of performance, distinctive competitive strategies and the high level of integrity of our people.

Pepsi-Cola North America, headquartered in Purchase, N.Y., is the refreshment beverage unit of PepsiCo Beverages and Foods North America, a division of PepsiCo, Inc. PepsiCo Beverages and Foods North America also comprises PepsiCo's Tropicana, Gatorade and Quaker Foods businesses in the United States and Canada. Pepsi-Cola North America's carbonated soft drinks, including: Pepsi, Diet Pepsi, Pepsi Twist, Mountain Dew, Mountain Dew Code Red, Sierra Mist, and Mug Root Beer account for nearly one-third of total soft drink sales in the United States. Pepsi-Cola North America's non-carbonated beverage portfolio includes Aquafina, which is the number one brand of bottled water in the United States, Dole single-serve juices and SoBe, which offers a wide range of drinks with herbal ingredients. The company also makes and markets North America's best-selling, ready-to-drink iced teas and coffees via joint ventures with Lipton and Starbucks, respectively.

OVERVIEW – PEPSICO The PepsiCo challenge (to keep up with archrival The Coca-Cola Company) never ends for the world's #2 carbonated soft-drink maker. The company's soft drinks include Pepsi, Mountain Dew, and Slice. It owns Frito-Lay, the world's #1 maker of snacks such as corn chips (Doritos, Fritos) and potato chips (Lay's, Ruffles). Cola is not the company's only beverage: PepsiCo sells Tropicana orange juice brands, Gatorade sports drink, and Aquafina water. PepsiCo also sells Dole juices (licensed) and Lipton ready-to-drink tea (licensed from Unilever). Its Quaker Foods division offers breakfast cereals (Life), pasta (Pasta Roni), rice (Rice-A-Roni), and side dishes (Near East). Wal-Mart is PepsiCo's largest customer, accounts for 9% of sales.

PepsiCo may be vying for more Pepsi-drinking people but its hefty snacks and juice sales help to quench the company's thirst for bottom-line growth. Frito-Lay's salty snacks rule the US market; the snack division accounts for about one-third of company sales.

The company announced a major restructuring in 2007, splitting its two business units (Pepsi-Cola North America and PepsiCo International) into three: one for US food, a second

for US drinks, and a third for food and drinks abroad. CEO Indra Nooyi said that due to the company's healthy growth in recent years, PepsiCo is approaching a size that can be better managed as three units rather than two.

The split looks like this: PepsiCo Americas Foods includes Frito-Lay North America, Quaker, and the Latin American food and snack businesses; PepsiCo Americas Beverages includes North American beverage sales, including Gatorade and Tropicana; and PepsiCo International includes business in the UK, the rest of Europe, Asia, the Middle East, and Africa.

With a saturated soft-drink market, the company continues to try new iterations: In 2007 the company introduced its first vitamin-enhanced water, called Aquafina Alive. It signed a licensing agreement with Ben & Jerry's in 2006 for the sale of Ben & Jerry's milkshakes in the US, as well as a deal with Starbucks for the distribution of the coffee purveyor's Ethos water brand. Hot on the heels of Coke's introduction of Blak, in 2006 Pepsi launched a coffee-flavored cola, named, Pepsi Max Cino, in the UK.

Venturing further into the non-cola category, PepsiCo acquired sparkling juice companies IZZE and Naked Juice in 2006. It also began selling Fuelosophy, a smoothie drink, at organic grocery store chain Whole Foods, and struck a deal to develop products with juice maker Ocean Spray Cranberries.

Bowing to the public's growing concern about childhood obesity, in 2006 Pepsi, along with Coca-Cola, Cadbury Schweppes, and the American Beverage Association agreed to sell only water, unsweetened juice, and low-fat milk to public elementary and middle schools in the US. As for high schools, the agreement calls for no sugary sodas to be sold and one-half of the offered drinks to be water, diet sodas, lemonade, or iced tea. The agreement was facilitated by former president Bill Clinton.

CEO Steve Reinemund stepped down as CEO in 2006 in order to spend more time with his family. His replacement was Indra Nooyi, the company's president and CFO. Indian-born Nooyi, the 11th female CEO of a FORTUNE 500 company, has been instrumental in strategic decisions at the company, such as the acquisition of Tropicana and merger with Quaker Oats.

Shortly after her appointment, Nooyi restructured the top level of power at the company. She appointed John Compton, previously head of the Quaker-Tropicana-Gatorade unit, to the newly created position of CEO for PepsiCo North America, reporting directly to her.

PEPSICO INDIA

Introduction: PepsiCo entered India in 1989 and in the span of a little more than a decade it became the country's largest selling soft drinks company. The Company has invested heavily in India making it one of the largest multinational investors. The group has built an expansive beverage, snack food and exports business and to support the operations are the group's 43 bottling plants in India, of which 15 are company owned and 28 are franchisee owned.

PepsiCo stays committed to providing its consumers with top quality beverages. Its diverse portfolio of brands include the flagship cola brand - Pepsi; Diet Pepsi; 7Up; Mirinda; Mountain Dew; Slice fruit drink; Tropicana brand 100% fruit juices in various flavours;

Aquafina packaged drinking water; Gatorade plus local brands Lehar Evervess Soda, Dukes Lemonade and Mangola.

PepsiCo is also a dominant player in the snack food segment in India. PepsiCo's snack food company Frito-Lay is the leader in the branded potato chip market. It manufactures Lay's Potato Chips; Cheetos extruded snacks, Uncle Chips; traditional namkeen snacks under the Kurkure and Lehar brands; and Quaker Oats.

PepsiCo is one of the largest MNC exporters in India and its export business consist of three categories - agri business, commodities and Pepsi system sales. PepsiCo has made significant investments with the Punjab Agriculture University to develop a comprehensive agrotechnology program that has helped thousands of farmers across India improve the yield of their farms and the quality of their agricultural products. PepsiCo has leveraged its knowledge in contract farming to develop seaweed cultivation in Tamil Nadu and has partnered with the Government of Punjab to help farmers of the state through the utilization of developed technology for citrus farming.

As part of its sustainable development initiatives, PepsiCo India has been a committed leader in the promotion of rain water harvesting, water conservation recycling and the reduction of effluent discharge. PepsiCo has also established zero waste centers and PET recycling supply chains and assisted victims of natural disasters. PepsiCo stays dedicated in its endeavor to develop community outreach programs by supporting rural water supply schemes, administering medical camps in villages, providing computers to rural schools and creating opportunities for women in rural areas through vocational training as an alternate means of livelihood.

OVERVIEW OF PEPSICO INDIA:

PepsiCo Mission

"To be the world's premier consumer products company focused on convenience foods and beverages. We seek to produce healthy financial rewards to investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in everything we do, we strive for honesty, fairness and integrity."

PepsiCo in India PepsiCo entered India in 1989 and has grown to become one of the country’s leading food and beverage companies. One of the largest multinational investors in the country, PepsiCo has established a business which aims to serve the long term dynamic needs of consumers in India.

PepsiCo India and its partners have invested more than U.S.$700 million since the company was established in the country. PepsiCo provides direct employment to 4,000 people and indirect employment to 60,000 people including suppliers and distributors. PepsiCo nourishes consumers with a range of products from treats to healthy eats, that deliver joy as well as nutrition and always, good taste. PepsiCo India’s expansive portfolio includes iconic refreshment beverages Pepsi, 7 UP, Mirinda and Mountain Dew, in addition to low calorie options such as Diet Pepsi, hydrating and nutritional beverages such as Aquafina drinking water, isotonic sports drinks - Gatorade, Tropicana100% fruit juices, and juice based drinks – Tropicana Nectars, Tropicana Twister and Slice. Local brands – Lehar Evervess Soda, Dukes Lemonade and Mangola add to the diverse range of brands.

PepsiCo’s foods company, Frito-Lay, is the leader in the branded salty snack market and all Frito Lay products are free of trans-fat and MSG. It manufactures Lay’s Potato Chips, Cheetos extruded snacks, Uncle Chipps and traditional snacks under the Kurkure and Lehar brands. The company’s high fibre breakfast cereal, Quaker Oats, and low fat and roasted snack options enhance the healthful choices available to consumers. Frito Lay’s core products, Lay’s, Kurkure, Uncle Chipps and Cheetos are cooked in Rice Bran Oil to significantly reduce saturated fats and all of its products contain voluntary nutritional labeling on their packets. The group has built an expansive beverage and foods business. To support its operations, PepsiCo has 43 bottling plants in India, of which 15 are company owned and 28 are franchisee owned. In addition to this, PepsiCo’s Frito Lay foods division has 3 state-of-theart plants. PepsiCo’s business is based on its sustainability vision of making tomorrow better than today. PepsiCo’s commitment to living by this vision every day is visible in its contribution to the country, consumers and farmers. Performance With Purpose Performance with Purpose articulates PepsiCo India's belief that its businesses are intrinsically connected to the communities and world that surrounds it. Performance with Purpose means delivering superior financial performance at the same time as we improve the world. To deliver on this commitment, PepsiCo India will build on the incredibly strong foundation of achievement and scale up its initiatives while focusing on the following 4 critical areas that have a business link and where we believe that we can have the most impact.

PRODUCTS OF COCA-COLA

➢

COCA COLA: thanda matlab coca cola!!!

Coca cola has truly remarkable heritage. From a humble beginning in 1886 it has now become the flagship brand of largest manufacturer, distributor of non alcoholic beverages in the world. In India, coca cola was the leading soft drink till 1977 when govt. policies necessitated its departure. Coca cola has made its return to the country in 1993.and made significant investment to ensure that the beverage is available to more and more people in remote as well as inaccessible parts of the world. Coca cola returned to India in 1993 and over the past ten years has captured the imagination of the nation, building strong association with cricket, the thriving cinema industry, music etc. coca cola has been very strongly associated with cricket, sponsoring the world cup in 1996. In 2002, coca cola launched the campaign,”Thanda Matlab coca cola”. in 2003,coke was available for just rs,5 crores in the country.

➢

FANTA : GHOONTH BHAR SHARARAT KAR LEY

Fanta entered the Indian market in year 1996 under the coca cola brand .over the years, Fanta has occupied a strong market place and is identified as “the fun catalyst”. Fanta stands for its vibrant color, tempting taste and tingling bubbles that not just uplifts feelings but also helps free spirit thus encouraging one to indulge in the moment.

➢

LIMCA: LIME AND LEMONI!!!

Drink that can cast a tangy refreshing spell on anyone, anywhere. Born in 1971, Limca has been the original thirst choice, of millions of consumers for over three decades.

The brand has been displaying healthy volume growing year on year and limca continues to be leading flavoring soft drinks in the country. Dive into the zingy refreshment of limca and walk away a new person.

➢

SPIRITE:

SPIRITE

BHUJAYE

PYAAS

BAKI

SAB

BAKWAAS!!!

World wide sprite ranked as no.4 soft drink and is sold in more than 190 countries In India, sprite was launched in year 1999 and today it has grown to be one of the fastest growing soft drinks, leading clear lime category. Today sprite is perceived as a youth icon. With strong appeal to youth sprite has stood for a straight forward and honest attitude. Its clear crisp hingtaste encourages today’s youth to trust their instincts, influence them to be true who they are and to obey their thirst.

➢

THUMS UP: TASTE THE THUNDER!!!

Strong cola taste, exciting personality. Thums up is a leading carbonated soft drink and most trusted brand in India. Originally introduced in 1977, thums up was acquired by the coca cola company in 1993. Thums up, is, known for strong, fizzy taste and its confident, mature and uniquely masculine attitude. This brand clearly seeks to separate the man from the boys.

➢

MAAZA: YAARI DOSTI TAAZA MAAZA!!!

Maaza was launched in 1976. In 1993, maaza was acquired by coca cola India. Maaza currently dominates the fruit drink category. Over the years, maaza has become synonymous with mango. “Taaza Mango, Maaza mango, Botal mei aam, maaza hai naam”.consumers regard maaza as wholesome, natural, fun loving drink real experience of fruit.

The campaign builds on the existing equity of the brand and delivers a relevant emotional benefit to the moms rightly captured in tagline, “yaari dosti, and taaza maaza”.

PRODUCTS OF PEPSI PEPSI: YEH DIL MAANGE MORE!!!

Pepsi cola is a carbonated beverage that is produced and manufactured by Pepsi co. It is sold in stores, restaurants and from vending machines. The drink was first made in the 1890’s in North Carolina. The brand was trademarked on June 16, 1903.There have been many Pepsi variants produced over the years.

•

Diet Pepsi

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Crystal Pepsi

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Pepsi twist

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Pepsi max

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Pepsi samba

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Pepsi blue

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Pepsi gold

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Pepsi holiday spice

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Pepsi jazz

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Pepsi x(available in Finland & brazil)

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Pepsi next(available in Japan & south Korea)

Product:Pepsi offers different variety of products ranging from carbonated to Non Carbonated Soft Drinks. These include – Pepsi Cola Mirinda ( Lemon and Orange ) 7 Up Dew Slice Tropicana Aquafina (Mineral Water) These Products come in different size – 200 ml, 300 ml, 600 ml, 1200 ml, 2 lt. there are nearly 42 SKU’s which are monitored and regulated on daily basis.

Research Methodology

Research Process: Research makes progress possible. Research is the systematic design, collection, analysis and reporting of data. Research comprises of defining and redefining problems, formulating hypothesis, collecting, organizing, evaluating data, making deduction and reaching to conclusion whether they fit into the formulation of hypothesis. Marketing research is used to know the wants of the customer and also to fulfill the needs of the customer. Above all is the process of research, discussed briefly in the following mentioned steps:

RESEARCH SAMPLING SELECT PROBLEM DATA DATA ANALYSIS COLLECTION DATA FORMULATION DESIGN METHOD REPORT DESIGN COLLECTION AND INTERPRETATION TECHNIQUE

Problem Formulation:

We have done this research on the basis on soft drink industry in Nagpur market. The information has been collected from both primary sources and secondary sources. Primary sources like the individuals (students, businessmen, retail outlets & shop kiosk). And secondary sources like govt & trade report, company records, sales force reports. According to Indian market scenario Coca-Cola is the leading company and Pepsi is at second position. We have collected data in a same ratio from each segment mention above so that research has carried right information.

Research Method:

It is the most relevant requirement for any market researcher. Research Methodology is totally based on problem of research what we have already have defined. Research Methodology always depends on the following points: A) The increasing complexity of the Business Environment •

Technological changes.

•

Research & Development.

•

Product changes.

•

IT changes.

B)

Increase complexity of decision maker.

Research Design:

It is a model, indicates a plan of action to be carried out in connection of this research. It provides only the guideline to the researcher to move forward. I have developed the research design on the basis of data which have been collected. Research design is the conceptual structure within which research is conducted; it constitutes the blue print for the collection, measurement and analysis of data. As such the design includes an outline of researcher work from the writing of hypothesis and the operational implementation to the final analysis of data.

Data Collection Techniques:

a)

Primary source: Data has been mainly collected form primary sources. The method was combination of direct personal interview backed by questionnaires method i.e. a questionnaire being drafted and data being collected by meeting soft drink retailers directly.

b) Secondary source: Data have obtained regarding the information relates to soft drink

industry profile i.e. industry growth, present status of industrial background, govt & trade report, company records, sales force reports etc.

Data Analysis & Interpretation:

Both quantitative and qualitative methods of data analysis have been used. The percentage of respondent in each category for each attribute has been taken to obtain meaningful information from data. Interpretation means drawing interference from the collected facts after analytical study. Here, ‘Percentage (%) technique’ has been used to interpret the data.

Sampling Design:

Sampling Universe The sampling universe is Nagpur City.

Sampling Unit An individual situated in the universe. Sample Definition Students, Businessmen, Service Retail outlets and Shop kiosk etc. System Sampling The sampling method followed in non-probability sampling. Judgement Sample Selection of individual who are good prospects for accurate information.

Sampling Tool Questionnaire for consumer.

Data presentation

➢ Area wise comparative analysis of market share of coca-cola & Pepsi ➢

In mota singh nagar

➢ Graph-1 On the basis of our market study, all the results and findings can interpret in various terms. Here we are using some presentation graphical tools with interpretation to support our data

From above graph we can clearly see the maximum of stock was found of coca cola 65% as compression to Pepsi 35% Thus we can see that there is a maximum share of coca-cola in mota singh nagar

Graph-2 Near bus stand

From the above graph we can clearly see the maximum of stock was found coca-cola.the cocacola percentage is 55% and pepsi percentage is 45%.

Graph-3 Model town

From the above graph we can clearly see the maximum of stock was found coca-cola.the cocacola percentage is 75% and pepsi percentage is 25%

Graph-4

Rama mandi

From the above graph we can clearly see the maximum of stock was found coca-cola.the cocacola percentage is 80% and Pepsi percentage is 20%

Graph -5 Sarafa market

From the above graph we can clearly see the maximum of stock was found coca-cola.the cocacola percentage is 70% and Pepsi percentage is 30%

Graph-6 Which is best brand?

From the above graph we can clearly see the maximum of stock was found coca-cola.the Coca-Cola Percentage is 28%.

Graph-7 Overall stock

From the above graph we can clearly see the maximum of stock was found coca-cola.the cocacola percentage is 69% and Pepsi percentage is 31%

FINDINGS➢ The findings of the survey are as given below ➢ It is observed on the basis of overall market share that Coca-Cola is market leader in

jalandhar city ➢ More schemes and discounts are desired by retailers & outlet owners

➢ Some retailers are not getting schemes from distributers issued by company ➢ Market coverage of Pepsi is not good

➢ Visit of customer executive to outlet is irregular ➢ Behavior of route agent is not very good with retailers

➢ Some retailers are very dissatisfied with distributers ➢ The position of sales generating assets was not too good. a number of outlets are still finding short of chilling facility . ➢ Retailers demand stock on credit basis because Coca-Cola providing it in jalandhar

market

Suggestions➢ On the basis of our analyzed primary and secondary data or findings, we identified followings suggestions to improve the organization & growth ➢ Customer executive should visit outlets regularly

➢ The behavior of route agent should be improved e specially in bus stand market

➢ Company should provide discount & schemes to outlets ➢ The company should organize market survey program regularly

➢ The company should organize sponsor local events of the locality like baishakhi and

other big events ➢ The company should sent greetings and gift on special occasion to the retailers

➢ Coca-Cola should use signboards to advertise in these area especially at model town.

➢ To improve its relationship with retailers.

Limitations ➢ Following are some limitations of results ➢ Due to time & money constraints, it is difficult to visit each & every market . ➢ In order to maintain secrecy about the available stock of the outlets retailers. Some time may not provide exact detail. ➢ In some cases, retailers were not interested in giving information.

➢ Many of the retailers, I visited had no time to provide information regarding stock. ➢ Many of time when I asked retailers about the stock ,they started about their problems

& asked me to solve their problem.

➢ During our projects we have used various secondary sources to gather data and its reliability may be one of the obstacles in our study. ➢ Information bias may be constraint for our project.

➢ A large sample could not be taken and systematic probability was not conducted due to lake of time.

Scope and implications of the study The scope of the study is related to market share .the study has its practicability for companies regarding various aspects. Because mostly all the decision making or policies depends directly on market share of the organization. some aspects are return on investment(ROI),return on assets(ROA), and target rate of profit ,it is also helpful for changes in tax policy. The focus on the study would be confined to two major companies of soft drinks that are Coca-Cola & Pepsi. The study has following implications ➢ It si useful for the students to understand the market share and various factors of

market share undertaken by a soft drink company. ➢ It has implication for the company also, since the project would help the company to

know its strengts, weakness, opportunities & threats in case of market share. ➢ It is useful for the org to know about its highest saleable pack size. ➢ It is useful for further research and study.

Conclusion The market survey was a good step in to the area of marketing and sales. It gave good amount of exposure because after being trained. Trainees work given an opportunity to carry out the process our selves. it helped in developing a considerable amount of convincing skills, a good understanding of market was accomplished as around 150 retailers were spoken to and that group consisted of a variety of people. this even helped in the polishing of communication skills, a must have to survive and make it big in the present world. it even gave a good understanding of behavior of retailers when placed in different situations. it was a good opportunity to work on the skills of patience as a large number of retailers were to be dealt with. it helped in developing the kind of relations one needs to up hold in the corporate world and it helped in building up the right attitude. As all points in the above mentioned paragraph ,are the must have skills for anyone in the field of marketing and sales ,the training period was a good experience and a good stepping in to the real business world. ➢ As a future line of research, the marketing and sales development at LBC offer projects like.

➢ Analysis impact of advertisement on the sales of the particular product

➢ Analysis of major trends in the Indian non-alcoholic market

➢ Analysis of changing trends in the market for coca-cola products

➢ Formulation of market penetration strategies

Bibliography ➢ Reference to book •

Kothari,c.r(2008) research methodology,new delhi publisher.

•

Kotler Philip(2006),marketing management pearson publisher

➢ MAGAZINES • Business World • India Today • Sports Stars

➢ Reference to web page •

www.cocacola.com

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www.pepsico.com

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www.pdfcoke.com

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www.managementparadise.com

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www.projectparadise.com

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www.dicoverarticles.com

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www.emeraldinsight.com

Appendix

Out let

address

name Bittu pardesi refreshment Ram

Valmiki

Contact

Phone

Coke

Coke

person

No-

(Rgb)

(pet)

Bittu ji

98880-

30

35

20

gate

rattan Valmiki

Total

Pepsi

Pepsi

Total

(Rgb)

(pet)

65

20

15

35

30

55

30

15

45

87569 Gulshan

93572-

gate

chawla

53835

Suraj

Neela

Suraj ji

2211351 35

40

75

15

10

25

general store

mahal

Sonu

Neela

Sonu ji

98886-

30

50

80

15

5

20

general store

mahal

Khanna

Mahiran Ashwani 98553-

30

70

70

20

10

30

store

gate

Jain store

Mahiran ss.jain

98555-

gate

58440

subash chandra

78910

kumar

50544