Minor Project Report - I

On

“BRAND RIVALRIES: PEPSI V/s COCA- COLA”

Submitted in Partial Fulfillment for the Award of the

Degree of BBA 2021-2024

Under the Guidance of: Submitted By:

Name: Dr. Anitha G Name: Harshit Goel

Designation: Enrollment: 08714701721

Maharaja Agrasen Institute of Management Studies, Rohini

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 A PROJECT REPORT

ON

“BRAND RIVALRIES: PEPSI V/S COCA-COLA”

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 Maharaja Agrasen Institute of Management Studies
(A unit of Maharaja Agrasen Technical Education Society)
Affiliated to GGSIP University; Recognized u/s 2(f) of UGC
Recognized by Bar Council of India; ISO 9001 : 2015 Certified Institution
Maharaja Agrasen Chowk, Sector 22, Rohini, Delhi-110086

CERTIFICATE FROM THE INSTITUTE GUIDE

This is to certify that the minor project titled “BRAND RIVALRIES:PEPSI V/S COCA COLA”is an
academic work done by “HARSHIT GOEL” submitted in the partial fulfillment of the requirement for
the award of the degree of BBA at Maharaja Agrasen Institute of Management Studies, Delhi, under my
guidance & direction.

To the best of my knowledge and belief the data & information presented by him/her in the project has
not been submitted earlier.

Signature :

Name of the Guide :

Designation :

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 STUDENT DECLARATION

This is to certify that I have the minor project report titled “Brand Rivalries: Pepsi V/s Coca-Cola” under

the guidance of “Dr. Anitha G” in the partial fulfillment of the requirement for the award of the degree

of BBA at Maharaja Agrasen Institute of Management Studies, Delhi. This is a original piece of work

and I have not submitted it elsewhere.

Date : Signature :

Place : Name :

Enrollment :

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 ACKNOWLEDEMENT

It is indeed a great pleasure and privilege for me to present ”BRAND RIVALRIES:

PEPSI V/S COCA COLA ” in DELHI in the year 2021-22.

I take immense pleasure in thanking to Dr. Vijay Kr khurana for giving us an opportunity to do this
project and for their valuable suggestion and guidance.

I also wish to thank library madam for allowing me to use the library and for helping colleting books and
magazines. I also extend my thanks to all those who directly or indirectly involved in our project
completion.

At last I would like to thanks once again to our faculty Dr.Anitha G whose sincere support has enable me at
each and every step and his experience always give me the right direction to achieve my goal.

Dr.Vijay Kr Khurana

H.O.D OF BBA {DEPT.}

MAIMS,ROHINI

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Title Page
Certificate
Declaration
Acknowledgement
Table of Contents
Chapter 1 Introduction to the Company & Industry

Chapter 2 Introduction to the topic

Chapter 3 Research Methodology
 Meaning of Research
 Objectives of the study (Minimum 3 objectives in points)
 Scope of the study
 Research Design(Meaning) & Types of Research Design (Exploratory or
Descriptive)
 Sample size, Sampling technique
 Data Collection/Data Sources
o Primary Source: Questionnaire, Interview
o Secondary Source: Ex: Financial Reports, magazines,
newspapers, annual report of the company, internet etc.
Chapter 4 Data Analysis & Interpretation
(At least 12 questions) (Diagrams+ Interpretation)

Chapter 5 Findings & Observations

(in Points)
Chapter 6 Suggestions (in Points) & Conclusion (in Paragraph)

References (Books) & Bibliograpy (Aricles & Research Papers) (in points)

Annexure – Questionnaire (if used)

Table of contents

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 CHAPTER 1

INTRODUCTION TO THE COMPANY

AND INDUSTRY

SOFT DRINKS BRANDS

INDUSTRY: SOFT DRINKS

soft drink, any of a class of non-alcoholic beverages, usually but not necessarily carbonated, normally
containing a natural or artificial sweetening agent, edible acids, natural or artificial flavours, and sometimes
juice. natural flavours are derived from fruits, nuts, berries, roots, herbs, and other plant sources. coffee, tea,

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milk, cocoa, and undiluted fruit and vegetable juices are not considered soft drinks. the term soft drink was
originated to distinguish the flavoured drinks from hard liquor, or distilled spirits. soft drinks were
recommended as a substitute in the effort to change the hard-drinking habits of early americans. indeed,
health concerns of modern consumers led to new categories of soft drinks emphasizing low calorie count,
low sodium content, no caffeine, and “all natural” ingredients. there are many specialty soft drinks. mineral
waters are very popular in europe and latin america. kava, made from roots of a bushy shrub, piper
methysticum, is consumed by the people of fiji and other pacific islands. in cuba people enjoy a carbonated
cane juice; its flavour comes from unrefined syrup. in tropical areas, where diets frequently lack sufficient
protein, soft drinks containing soybean flour have been marketed. in egypt carob (locust bean) extract is
used. in brazil a soft drink is made using maté as a base. the whey obtained from making buffalo cheese is
carbonated and consumed as a soft drink in north africa. some eastern europeans enjoy a drink prepared
from fermented stale bread. honey and orange juice go into a popular drink of israel.

History of soft drinks

The origins of soft drinks lie in the development of fruit-flavored drinks. In the medieval Middle East, a
variety of fruit-flavored soft drinks were widely drunk, such as sharbat, and were often sweetened with
ingredients such as sugar, syrup and honey. Other common ingredients included lemon, apple, pomegranate,
tamarind, jujube, sumac, musk, mint and ice. Middle Eastern drinks later became popular in medieval
Europe, where the word "syrup" was derived from Arabic.[14] In Tudor England, 'water imperial' was
widely drunk; it was a sweetened drink with lemon flavor and containing cream of tartar. 'Manays Cryste'
was a sweetened cordial flavored with rosewater, violets or cinnamon.[15] Another early type of soft drink
was lemonade, made of water and lemon juice sweetened with honey, but without carbonated water. The
Compagnie des Limonadiers of Paris was granted a monopoly for the sale of lemonade soft drinks in 1676.
Vendors carried tanks of lemonade on their backs and dispensed cups of the soft drink to Parisians.

List of top selling soft drinks In India

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There are more than seventy brands of soft drinks available in India. Companies try to keep their prices at a
minimum to give a fair competition to their competitors. However, there are some premium brands as well,
that is one of the costly soft drinks available in India. Below is the a list of soft drinks brands in India and
their prices. Regardless of the financial status, every person living in India must have at least tasted one of
these drinks in their lifetime. Here are the 10 best Soft Drink Brands In India –

1. Coca-Cola or Coke

Coca-cola was invented by Dr John S Pemberton on 8th May 1886 in Atlanta, Georgia. He started selling
coca-cola at a pharmacy nearby (Jacobs’ Pharmacy) for 5 cents perglass owing to the sudden popularity it
had gained.

Coca-cola is commonly known as coke in almost every state and is the largest selling cold drink in our
country. The company coca-cola has several other brands under their belt as well and captures about 60% of
the market in India, whereas coke alone captures around 40% market share. You will find coke in various
packaging in your nearby stores such as plastic bottles, cans, glass bottles, etc. Coca-Cola is one of the best
soft drink brands in India.

Coke price – Rs 40/- for a 600 ml bottle

2. Pepsi

Did you know that Pepsi was first known as Brad’s drink? It was changed to Pepsi Cola and then finally
Pepsi. This brand is hugely popular among Indians and is only second to coke when it comes to market
shares. Pepsi is considered as one of the best soft drink brands in India. Pepsi gives a tough competition to
coke in the Indian market. Worldwide, there is always a Team Coke and Team Pepsi when it comes to
choosing their favorite cola brand. They capture around 30.8% of the market share. Pepsi is sold worldwide;
however, it came back to India in 1990 and has been popular ever since.

Pepsi price – Rs 40/- for a 750 ml bottle

3. Sprite

Sprite is a soft drink brand from the coca-cola company and is very popular in the Indian market. It was
founded in India in 1999. It surpassed Pepsi in 2009 and became the second most consumed soft drink in
India. The green colour packaging and unique flavour make it one of our favourite cold drinks. Altogether, it

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is the most famous lime drink in our country and definitely worthy of making to the list of soft drink brands
in India.

Price – Rs 35/- for a 300 ml can

4. Thums Up

“Thums Up – Taste the thunder” and “Aaj Kuchh Toofani Kartey Hain” are the two tagline we associate
with this brand. It is one of the first three local soft drink brands in India. Thums Up came to be in 1977
after the exit of coca-cola from the Indian market and quickly gained popularity. But later on, coke bought
the company to fight off their rivals Pepsi. It is still a widely popular carbonated fizzy drink in all parts of
the country. This company is among the best soft drinks in India and has a huge consumer base. .

Price – Rs 45/- for a 750 ml bottle

5. Fanta

Fanta replaced our first local soft drink brand gold spot. Amazingly, Fanta was launched during world war II
in Germany. The name Fanta came from the German word “Fantasie”. It had the same orange color and
flavor. Due to this, it became a massive hit in the market back then and continues till this day. Fanta is one
of the most famous orange fizzy drinks in our country. They sell their products in various packaging such as
cans, bottles, glass bottles etc.

Price – Rs 45/- for a 750 ml bottle

6. Mazza

We recognize mango as the king of fruits and is also the national fruit of our country. Our love for mangoes
made Maaza one of the bestselling mango flavored drinks in the nation. This company was acquired by
coca-cola in 1993 and is now available in all parts of the world. Maaza accounts for around 90% of the fruit
juice market in the country and also has the highest market shares in the same.

Price – Rs 35/- for a 750 ml bottle

7. 7Up

7Up is a widely popular lemon and lime flavored drink in India and is only second to sprite in terms of sales.
This company is owned by PepsiCo and Dr. Pepper Snapple group. They also have a popular product named
Nimbooz in India.
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Price – Rs 25/- for a 250 ml can

8. Mirinda

Mirinda is a very famous alternative to coca cola’s brand Fanta in the country. No wonder it is owned by
PepsiCo, the rival company to coca-cola. The competition among these two giants continues to bring new
and amazing varieties of soft drinks. This brand was initially founded in Spain with multiple flavors to
increase market shares.

Price – Rs 40/- for a 750 ml bottle

9. Limca

Limca is another popular product from the coca-cola company and is among the best lemon and carbonated
lime drinks in the country. But it was created Parle Agro in 1971. Limca is one of the very first local soft
drinks in India.

Price – Rs 40/- for a 750 ml bottle

10. Mountain Dew

Since its invention in 1940 by ally Hartman and Barney, it became a trendy choice in the soft drink industry.
But later on, PepsiCo acquired the brand and started further distributions in India. They quickly became a
top choice among people through cheesy advertisements and good marketing techniques. There also exist
various varieties and flavors among this brand such as mountain dew red and cherry mountain
dew. Mountain dew is considered to be one of the most popular soft drink brands in India.

Price – Rs 35/- for a 600 ml bottle

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- Coca-Cola, or Coke, is a carbonated soft drink manufactured by the Coca-Cola Company.
Originally marketed as a temperance drink and intended as a patent medicine, it was invented in the
late 19th century by John Stith Pemberton in Atlanta, Georgia. In 1888 Pemberton sold Coca-Cola's
ownership rights to Asa Griggs Candler, a businessman, whose marketing tactics led Coca-Cola to its
dominance of the global soft-drink market throughout the 20th and 21st century.[1] The drink's name
refers to two of its original ingredients: coca leaves, and kola nuts (a source of caffeine). The current
formula of Coca-Cola remains a closely guarded trade secret; however, a variety of reported recipes
and experimental recreations have been published. The secrecy around the formula has been used by
Coca-Cola in its marketing as only a handful of anonymous employees know the formula.[2] The
drink has inspired imitators and created a whole classification of soft drink: colas.

The Coca-Cola Company produces concentrate, which is then sold to licensed Coca-Cola bottlers
throughout the world. The bottlers, who hold exclusive territory contracts with the company, produce
the finished product in cans and bottles from the concentrate, in combination with filtered water and
sweeteners. A typical 12-US-fluid-ounce (350 ml) can contains 38 grams (1.3 oz) of sugar (usually in
the form of high-fructose corn syrup in North America). The bottlers then sell, distribute, and
merchandise Coca-Cola to retail stores, restaurants, and vending machines throughout the world. The
Coca-Cola Company also sells concentrate for soda fountains of major restaurants and foodservice
distributors.

The Coca-Cola Company has on occasion introduced other cola drinks under the Coke name. The
most common of these is Diet Coke, along with others including Caffeine-Free Coca-Cola, Diet Coke
Caffeine-Free, Coca-Cola Zero Sugar, Coca-Cola Cherry, Coca-Cola Vanilla, and special versions
with lemon, lime, and coffee. Coca-Cola was called Coca-Cola Classic from July 1985 to 2009, to
distinguish it from "New Coke". Based on Interbrand's "best global brand" study of 2020, Coca-Cola
was the world's sixth most valuable brand.[3] In 2013, Coke products were sold in over 200 countries
worldwide, with consumers drinking more than 1.8 billion company beverage servings each day.[4]
Coca-Cola ranked No. 87 in the 2018 Fortune 500 list of the largest United States corporations by
total revenue.

COCA-COLA’S OTHER SOFT DRINKS

1. THUMBS UP
2. SPRITE
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3. MAZZA
4. MINUTE-MAID
5. LIMCA

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Pepsi was founded in New York in 1965. It is Producing Non-alcoholic beverage and Food processing
items. Pepsi is a carbonated beverage that is produced and manufactured by PepsiCo. It is sold in retail
stores, restaurants cinemas and from vending machines. The drink was first made in the 1890s by
pharmacist Caleb Bradham in New Bern, North Carolina. The brand was trademarked on June 16, 1903.
Pepsi arrived on the market in India in 1988.PepsiCo gained entry to India in 1988 by creating a joint
venture with the Punjab government-owned Punjab Agro Industrial Corporation (PAIC) and Volta’s India
Limited. This joint venture marketed and sold Lehar Pepsi until 1991, when the use of foreign brands was
allowed; PepsiCo bought out its partners and ended the joint venture in 1994. Others claim that firstly Pepsi
was banned from import in India, in 1970, for having refused to release the list of its ingredients and in
1993, the ban was lifted, with Pepsi arriving on the market shortly afterwards. These controversies are a
reminder of "India’s sometimes acrimonious relationship with huge multinational companies." Indeed, some
argue that PepsiCo and The Coca-Cola Company have "been major targets in part because they are well-
known foreign companies that draw plenty of attention."

Ingredients

Pepsi-Cola contains basic ingredients found in most other similar drinks including carbonated water, high
fructose corn syrup, sugar, colorings, phosphoric acid, caffeine, citric acid, and natural flavors. The caffeine-
free Pepsi-Cola contains the same ingredients minus the caffeine.

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HISTORY

PepsiCo entered India in 1989 and has grown to become one of the largest MNC food and beverage
businesses in India. PepsiCo India’s diverse portfolio includes iconic brands like Pepsi, Lay’s, Kurkure,
Tropicana 100%, Gatorade and Quaker. Guiding PepsiCo is our vision to Be the Global Leader in
Convenient Foods and Beverages by Winning with Purpose. We believe that continuously improving the
products we sell, operating responsibly to protect our planet and empowering people around the world is
what enables PepsiCo to run a successful global company that creates long-term value for society and our
shareholders.

Pepsi was first introduced as "Brad's Drink"in New Bern, North Carolina, United States, in 1893 by Caleb
Bradham, who made it at his drugstore where the drink was sold. It was renamed Pepsi-Cola in 1898,
"Pepsi" because it was advertised to relieve dyspepsia (indigestion) and "Cola" referring to the cola flavor.
Some have also suggested that "Pepsi" may have been a reference to the drink aiding digestion like the
digestive enzyme pepsin,but pepsin itself was never used as an ingredient to Pepsi-Cola.[1] The original
recipe also included sugar and vanilla. Bradham sought to create a fountain drink that was appealing and
would aid in digestion and boost energy

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PEPSI’S OTHER SOFT DRINKS

1. MOUNTAIN DEW
2. MIRINDA
3. 7UP
4. TROPICANA
5. GATORADE

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 CHAPTER 2

INTRODUCTION TO THE TOPIC

“BRAND RIVALRIES : PEPSI V/S COCA COLA”

STARTING OF THE RIVALRIES

According to Consumer Reports, in the 1970s, the rivalry continued to heat up the market. Pepsi conducted
blind taste tests in stores, in what was called the "Pepsi Challenge". These tests suggested that more
consumers preferred the taste of Pepsi to Coca-Cola. The sales of Pepsi started to climb, and Pepsi kicked
off the "Challenge" across the nation. This became known as the "cola wars".

In 1985, The Coca-Cola Company, amid much publicity, changed its formula. The theory has been
advanced that New Coke, as the reformulated drink came to be known, was invented specifically in response

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to the Pepsi Challenge. However, a consumer backlash led to Coca-Cola quickly reintroducing the original
formula as "Coca-Cola Classic".

In 1989, Billy Joel mentioned the rivalry between the two companies in the song "We Didn't Start the Fire".
The line "Rock & Roller Cola Wars" refers to Pepsi and Coke's usage of various musicians in advertising
campaigns. Coke used Paula Abdul, while Pepsi used Michael Jackson. Both companies then competed to
get other musicians to advertise its beverages.

According to Beverage Digest's 2008 report on carbonated soft drinks, PepsiCo's U.S. market share is 30.8
percent, while The Coca-Cola Company's is 42.7 percent.[32] Coca-Cola outsells Pepsi in most parts of the
U.S., notable exceptions being central Appalachia, North Dakota, and Utah. In the city of Buffalo, New
York, Pepsi outsells Coca-Cola by a two-to-one margin.

Overall, Coca-Cola continues to outsell Pepsi in almost all areas of the world. However, exceptions include:
Oman, India, Saudi Arabia, Pakistan, the Dominican Republic, Guatemala, the Canadian provinces of
Quebec, Newfoundland and Labrador, Nova Scotia, and Prince Edward Island, and Northern Ontario.

Pepsi had long been the drink of French-Canadians, and it continues to hold its dominance by relying on
local Québécois celebrities (especially Claude Meunier, of La Petite Vie fame) to sell its product. PepsiCo
introduced the Quebec slogan "here, it's Pepsi" (Ici, c'est Pepsi) in response to Coca-Cola ads proclaiming
"Around the world, it's Coke" (Partout dans le monde, c'est Coke).

As of 2012, Pepsi is the third most popular carbonated drink in India, with a 15% market share, behind
Sprite and Thums Up. In comparison, Coca-Cola is the fourth most popular carbonated drink, occupying a
mere 8.8% of the Indian market share.[36] By most accounts, Coca-Cola was India's leading soft drink until
1977, when it left India because of the new foreign exchange laws which mandated majority shareholding in
companies to be held by Indian shareholders. The Coca-Cola Company was unwilling to dilute its stake in
its Indian unit as required by the Foreign Exchange Regulation Act (FERA), thus sharing its formula with an
entity in which it did not have majority shareholding. In 1988, PepsiCo gained entry to India by creating a
joint venture with the Punjab government-owned Punjab Agro Industrial Corporation (PAIC) and Voltas
India Limited. This joint venture marketed and sold Lehar Pepsi until 1991, when the use of foreign brands
was allowed; PepsiCo bought out its partners and ended the joint venture in 1994. In 1993, The Coca-Cola
Company returned in pursuance of India's Liberalization policy.

Pepsi bottles in Soviet period style in supermarket in Kyiv, Ukraine In Russia, Pepsi initially had a larger
market share than Coke, but it was undercut once the Cold War ended. In 1972, PepsiCo struck a barter
agreement with the then government of the Soviet Union, in which PepsiCo was granted exportation and
Western marketing rights to Stolichnaya vodka in exchange for importation and Soviet marketing of Pepsi.

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This exchange led to Pepsi being the first foreign product sanctioned for sale in the Soviet Union.[40]
Reminiscent of the way that Coca-Cola became a cultural icon and its global spread spawned words like

"cocacolonization", Pepsi-Cola and its relation to the Soviet system turned it into an icon. In the early 1990s,
the term "Pepsi-stroika" began appearing as a pun on "perestroika", the reform policy of the Soviet Union
under Mikhail Gorbachev.[41] Critics viewed the policy as an attempt to usher in Western products in deals
there with the old elites. Pepsi, as one of the first American products in the Soviet Union, became a symbol
of that relationship and the Soviet policy. This was reflected in Russian author Victor Pelevin's book
Generation P.

In 1992, following the dissolution of the Soviet Union, Coca-Cola was introduced to the Russian market. As
it came to be associated with the new system and Pepsi with the old, Coca-Cola rapidly captured a
significant market share that might otherwise have required years to achieve. By July 2005, Coca-Cola
enjoyed a market share of 19.4 percent, followed by Pepsi with 13 percent.

Pepsi was introduced in Romania in 1966, during the early liberalization policies of Nicolae Ceaușescu,
opening up a factory at Constanța in 1967. This was done as a barter agreement similar to the one in the
USSR, however, Romanian wine would be sold in the United States instead. The product quickly became
popular, especially among young people, but due to the austerity measures imposed in the 1980s, the
product became scarce and rare to find. Starting from 1991, PepsiCo entered the new Romanian market
economy, and still maintains a bigger popularity than its competitor, Coca-Cola, introduced in Romania in
1992, despite heavy competition during the 1990s (sometime between 2000 and 2005, Pepsi overtook Coca-
Cola in sales in Romania).

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 SWOT ANALYSIS

“PEPSI V/S COCA COLA”

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PEPSI

PepsiCo’s Strengths

1. Best Global Brand – According to Forbes 2019 ranking, PepsiCo is ranked # 29 most valuable
brand with a brand value of $18.8 Billion. In 2020, PepsiCo was ranked 87th largest company in the world
in Forbes’ Global 2000.

2. Power of One Strategy – Selling “Food & Snacks” (Frito Lays, Cheetos, Doritos, Kurkure) and
“Beverages” (Pepsi, Gatorade, Tropicana) under one umbrella makes PepsiCo a stronger and diversified
business. Its food business accounted for 54%, and beverages accounted for 46%.

3. Highly Diversified Portfolio – The main strength of PepsiCo lies in the large number of brands under its
portfolio spanning across the food and beverage sector. PepsiCo has 22 brands, such as Pepsi, Diet Pepsi,
Pepsi Max, Fritos, and others; each generates more than $1 billion in annual retail sales. While other
companies struggled to meet their forecasts due to market uncertainties, PepsiCo managed to meet and beat
its forecasts thanks to its diversified portfolio. Surging demand for its snacks like Lays and Doritos offset
the decline in demand for soft drinks.

4. Strong Global Presence – PepsiCo has exploited the benefits of a strong global presence by partaking in
more than 200 countries across the world. PepsiCo’s overwhelming presence in markets across the world
has enhanced global awareness and recognition of the brand among consumers. One of the strengths that has
enabled PepsiCo to go head-to-head with competitors, such as Coca Cola.

PepsiCo’s Weaknesses

1. Overdependence on Food and Beverages: Over dependency on carbonated soft drinks and packaged
foods undermine companies’ flexibility and agility in case of turmoil in that segment. PepsiCo decided to go
against the wise men by putting its eggs in one basket – food and beverages. The company should diversify
to avoid the possibility of losing everything.

2. Products Perceived as Unhealthy: Perception is everything when it comes to consumer products such
as soft drinks and snacks. Most of PepsiCo’s carbonated soft drinks contain high sugar concentrates while its
snacks are excessively salted with chemical additives and flavors. This a major weakness, particularly in the
current health-conscious consumer markets.

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3. Effects of Failed Products: Failure in any venture is a weakness. PepsiCo’s failed products such as
Crystal Pepsi (Colorless Cola), Pepsi Blue, etc. demoralized employees and portrayed them as incompetent
in the public sphere giving room for the competition to grow.

4. Controversial Advertisements: Companies are required to use their elevated position to advance
society’s common good. Unfortunately, in 2017, PepsiCo’s advert featuring Kendall Jenner was criticized
for trivializing the Black Lives Matter movement. The ad was pulled after one day. The company released
this statement:

“Pepsi was trying to project a global message of unity, peace, and understanding. Clearly, we missed the
mark, and we apologize. We did not intend to make light of any serious issue. We are removing the content
and halting any further rollout. We also apologize for putting Kendall Jenner in this position.”

This is a major weakness compared to the positive values of life, such as family get-togethers consistently
advocated for in most of Coca Cola’s advertisements.

PepsiCo’s Opportunities

1. Product Diversification: Diversification into different segments enables businesses to exploit benefits
beyond their traditional field of operation and attain stability. Even though PepsiCo has 22 brands under its
portfolio, all these brands are concentrated within the food and beverage industry. PepsiCo can exploit
benefits in other segments by diversifying its products portfolio into other sectors beyond food and
beverages, such as sportswear, through the acquisition of a small but established sportswear brand. PepsiCo
can also diversify its product portfolio to include alcoholic beverages. The company recently announced that
it was considering expanding into the alcoholic market after Coca-Cola Co announced they would be
introducing an alcoholic drink in the US market in 2021.

2. Expand E-Commerce: More customers are using digital channels for online shopping. PepsiCo has the
opportunity to exploit the benefits of online shopping by expanding its e-commerce (mobile apps) and grow
sales through these channels.

3. Enhance Alliances and Partnerships: In a globalized marketplace, businesses that seek and nurture
strong alliances and partnerships are more successful. For example, PepsiCo can extend the current
partnership with Starbucks into other areas to harness all benefits of their partner’s numerous coffee outlets.

4. Increase Consumer-Driven R&D: Adaption to changes in the marketplace is the key to success.
PepsiCo has the resources to increase investment in research and development, manufacturing, and go-to-

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market capabilities and attain an edge over competitors in the changing consumer and retail landscapes. In
FY2019, PepsiCo spent over $710 million on research and development, with its R&D expenses ranging
between $665 million and $760 million in the past seven years.

PepsiCo’s Threats

1. Stiff Competition: PepsiCo’s profitability and market share are threatened by stiff competition from
Coca Cola, Nestle, Dr. Peppers, Unilever, and so on. The competition also threatens long-term sustainability
and profitability because it increases the cost of protecting market share through adverts, promotions, and
discounts to retain customers.

2. Economic Slowdown or Recession: Even though food and beverage consumer markets are going strong,
the possibility of a slowdown or recession soon cannot be ruled out. In case of a recession, PepsiCo can
incur losses because its product portfolio is concentrated with products, which are usually among the first
expenses to be dropped by consumers during economic hardship. In the 2008-09 recession, Pepsi had to cut
over 3300 jobs due to a decrease in soft drink sales. The company was forced to scrap its full-year forecast
for the 2020-2021 fiscal year due to uncertainties in the market. It scrapped its projection of 4% revenue
growth for the year in the first quarter of 2020 after its net income fell to $1.34 billion from $1.41 billion a
year earlier.

3. Competitors Adopt Technology More Effectively: In the current technologically advanced and highly
competitive business arena, the success or failure of businesses depends on the adoption rate of emerging
technologies. PepsiCo can lose competitive advantage to competitors if they adopt game-changing
technologies more effectively.

4. Changes in Demographics: Changes in demographics and economic situation transforms target markets,
which can impact businesses negatively. For example, the demographics of Nordic nations such as Sweden
(median age 41.1 years) have shifted with an increase in older consumers and a decreased number of youths.
These changes can threaten PepsiCo’s profitability and sustainability because a large portion of its customer
base consists of the youth.

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COCA COLA

Coca-Cola’s Strengths

1. Strong brand identity – Coca-Cola is a highly popular brand with a unique brand identity. Its soft drinks
are the most-selling drinks in history.

2.High brand valuation – Coca-Cola is undoubtedly one of the most renowned brands with a high brand
value. According to Interbrand annual report, Coca Cola is ranked 6th best global brand in 2021 with a
brand value of $57 Billion. Other top ranking companies on the list are Apple at #1, Amazon at #2,
Microsoft at #3 Google at #4 and Samsung at #5 position.

3. Extended global reach – It is sold in more than 200 countries with 1.9 billion servings per day of
Company products. It has introduced more than 500 new products globally. Some of these are variations of
Coca-Cola beverage, like Coco Cola Vanilla and Cherry Coca-Cola. Its brands are known to touch every
lifestyle and demography.

4.Greatest brand association and customer loyalty – Coca-Cola is considered one of US’s most
emotionally-connected brands. This valuable brand is associated with ‘happiness’ and has strong customer
loyalty. Customers can quickly identify their particular taste. Finding its substitutes is difficult for them.
Moreover, Coca-Cola and Fanta have a huge fan following than other beverage names in the industry.

Coca-Cola’s Weaknesses

1. Aggressive competition with Pepsi – Pepsi is the biggest rival of Coca-Cola. Had it not been Pepsi,
Coca-Cola would have been the clear market leader in the beverage.

2. Product diversification – Coca-Cola has low product diversification. Where Pepsi has launched
many snacks items like Lays and Kurkure, Coca-Cola is lagging in this segment. It gives Pepsi
leverage over Coca-Cola.

3. Health concerns –Carbonated drinks are one of the major sources of sugar intake. It results in two
grave health issues – obesity and diabetes. Coca-Cola is the biggest manufacturer of carbonated
beverages. Many health experts have prohibited the use of these soft drinks. It is a controversial issue
for the company. However, Coca-Cola hasn’t devised any health alternative or solution for this
problem yet.
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 4. Lawsuits – Trust is undermined whenever the company is accused of wrongdoing. Coca Cola is
facing a patent infringement lawsuit for using a dispenser that can recognize users and customize
drinks based on their preferences.

Coca-Cola’s Opportunities

1. Introduce new products and reduce added sugar – Coca-Cola has the opportunity to introduce
new offerings in healthy drinks and food segments just like Pepsi. It can contribute to their revenue,
brand image and they can branch out from carbonated drinks. According to its recent annual report,
Coca-Cola has been evolving and prioritizing the reduction of sugar in its beverages and so far 28%
of its volume sold was low or no-calorie beverage.

2. Increase presence in developing nations – Many regions with hot climate have the highest
consumption for cold drinks. Thus, increasing presence in such emerging markets can be excellent –
Middle Eastern and African countries are a good example.

3. Bring advanced supply chain system – Coca Cola’s business is entirely dependent upon logistics
and supply chain. Transportation costs and fuel prices are always on the rise. Thus, coming up with
some advanced and improved systems for distribution can be an opportunity.

4. Packaged drinking water – Coca-Cola owns several packaged drinking water brands like Kinley.
There is a great potential for expansion in this segment for Coca-Cola. There is an opportunity to
expand and bring more healthy drinks in the market to avoid people’s criticism.

Coca-Cola’s Threats

1. Water usage controversy – Coca-Cola has faced many criticisms over its water management issue.
Many social and environmental groups have claimed that the company has a vast consumption of water in
water-scarce regions. Besides, people have alleged that Coca-Cola is polluting water and mixing pesticides
in water to clear contaminants.

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2. Pollution Lawsuit – Coke and three other companies are being sued by a California environmental group
for contributing to plastic pollution. In the lawsuit, Coca-Cola is singled out for misleading the public about
the recyclability of its single-use plastic bottles. [7] Source: Statista

3. Direct and indirect competition – Although direct competition from Pepsi is clear in the market,
however, there are many other companies which are indirectly competing with Coca-Cola. Starbucks, Costa
Coffee, Tropicana, Lipton juices, and Nescafe, are the indirect competitors of Coca-Cola, which can threaten
its market position.

4. Economic Uncertainty – The recent events have negatively affected business operations, supply and
distribution chains, and devastated revenues of many global companies. In 2020, Coca Cola’s revenues
declined drastically as restaurants, theaters, and other venues that contribute about half of its revenue
remained closed due to the global crisis.

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 CHAPTER 3

RESEARCH METHODOLOGY

 Meaning of Research
 Objectives of the study
 Scope of the study
 Research Design (Meaning) & Types of Research Design (Exploratory or
Descriptive)
 Sample size, Sampling technique
 Data Collection/Data Sources
o Primary Source: Questionnaire, Interview
o Secondary Source: reports, magazines

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Methodology

We have done Descriptive research to find out our objectives. In descriptive research we use the primary
and secondary data.
Research methodology is the way to systematically solve the research problem. The method used for the
research is Descriptive Research to find out our objectives.
In descriptive research we use the primary and secondary both data, Sample Design for primary data have
been collected through probability sampling. In which I have used convenient sampling.
Data is Collected through Market survey in Yamuna vihar , Delhi-110053.
Data Collection Instrument: - Well prepared structured questionnaires were used in this study, which
includes both closed-ended and few open-ended questions to get information based on the objective of
the research process. People of different age group from different economic background were asked to fill
the questionnaire containing 15 questions.

Sample Size is taken 40 out of which 4 questionnaires had been rejected due to Mistakes, which was made
by the respondents.

Objective of the study

 To study the overview of Pepsi and coca cola Company.

 To know and compare the merchandising of Pepsi and Coke in retail outlets.

 To identify the retailers opinion towards Pepsi products when compared to coke products.

 To offer some finding and suggestions to the company for the improvement of its performance.

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Scope of the Study

In the present scenario the competitions between the soft drinks increased very high. The companies are
struggling a lot to keep up their market share in the industry and to improve the sales of their products i.e.
the turnover of the company. For this the company has to know their position in the market and the opinion
and the loyalty of the customers and the retailers when compared to their competitor. Because of this reason
the comparative analysis is very important and useful to the Company.

By the use of comparative analysis the companies can understand the position of the company and the
strength of the company in the market. Through the comparative analysis we can understand that what
strategies the competitors are using for the increase their sales volume. From the study we can gather the
information regarding the opinion of the retailers on the companies comparatively and this will help to plans
for the future to increase the performance of the company and to gain the loyalty of the retailers when
compared to the competitors.

SOURCE OF COLLECTION OF DATA

All the useful data which were require for this research has been collected through Primary and secondary
date.

Primary data collected through Questionnaire

Secondary data collected through Internet, Magazines and Newspaper

ASSUMPTIONS

1.It is assumed that the chosen sample is the representation of whole population.
2.It is assumed that information provided by the samples is accurate and best of their knowledge.

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Sampling Technique

Sampling is a technique of selecting individual members or a subset of the population to make statistical
inferences from them and estimate characteristics of the whole population. Different sampling methods are
widely used by researchers in market research so that they do not need to research the entire population to
collect actionable insights.

It is also a time-convenient and a cost-effective method and hence forms the basis of any research design.
Sampling techniques can be used in a research survey software for optimum derivation.

For example, if a drug manufacturer would like to research the adverse side effects of a drug on the
country’s population, it is almost impossible to conduct a research study that involves everyone. In this case,
the researcher decides a sample of people from each demographic and then researches them, giving him/her
indicative feedback on the drug’s behavior.

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And we have already discussed that I have decided to opt Simple Random Sampling in which I have used
a Basic questionnaire in a market survey.

Simple random sampling

One of the best probability sampling techniques that helps in saving time and resources, is the Simple
Random Sampling method. It is a reliable method of obtaining information where every single member of a
population is chosen randomly, merely by chance. Each individual has the same probability of being chosen
to be a part of a sample.

For example, in an organization of 500 employees, if the HR team decides on conducting team building
activities, it is highly likely that they would prefer picking chits out of a bowl. In this case, each of the 500
employees has an equal opportunity of being selected.

Data is Collected through Market survey in Yamuna vihar , Delhi-110053.

Data Collection Instrument: - Well prepared structured questionnaires were used in this study, which
includes both closed-ended and few open-ended questions to get information based on the objective of
the research process. People of different age group from different economic background were asked to fill
the questionnaire containing 15 questions.
Sample Size is taken 40 out of which 4 questionnaires had been rejected due to Mistakes, which was made
by the respondents.

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 Chapter 3

Data interpretation and analysis

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 REPRESENTATION OF DATA THROUGH CHART

RATIO OF MALE & FEMALE RESPONDANT

Total numbers of respondent were 40 out of which 4 questionnaires is rejected. So final date interpretation is
done on the basis of only 36 questionnaires.

Total respondent were 36

Gender Number

Male 30

Female 6

female
10%

male
female

male
90%

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 PROFILE OF RESPONDENT

Total respondent were 36

Profile Number

Student 17

Service men 8

Housewife 2

Professional 3

Businessman 4

Others 2

others
professional6%
9%
housewife
6%
student
student service men
53%
housewife
service men professional
25% others

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 REASON BEHIND CHOOSING THE PRODUCT

Total respondent 36

Preferences No of Respondent

Taste 28

Advertisements 4

Schemes 5

Easy availability 4

People Like 1

Others 1

peopleothers
like
3%3%
easy availability
11%
advertisement
11% taste
advertisement
easy availability
people like
taste
74% others

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 EFFECT OF ADVERTISMENT

Total respondent 36

Influence of Advertisements No of Respondent

Yes 14

No 22

yes
yes no
39%
3rd Qtr
no
61%

62% respondent said that Advertisements Influence their buying decision,

While 38% said that it doesn’t influence them for buying

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 BRAND LOYALTY

If the desired variety of beverage is not available at particular shop, how does consumer respond?

Total respondent 36

Respond No of Respondent

Take another variety 11

Visit next shop 16

Suggest to have same variety 6

Postpone decision 3

8%

17% 31%

take another variety

visit next shop
suggest to have same variety
postpone decision

44%

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 PRESENCE OF PESTICIDES

Total respondent 36

Respond No of Respondent

Fully disagree 15

Agree to some extent 19

Fully agree 2

6%

42%
full disagree
agree to some extent
53% fully agree

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 CONSUMPTION OF BEVERAGRS

How often people consume beverages?

Total respondent 36

Respond No of Respondent

Once a week 9

Twice a week 10

More than twice a week 5

Once in two week 2

When ever you required 10

28% 25%
once a week
twice a week
more than twice a week
once in two weeks
6% when ever you required

14% 28%

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 SATISFACTION LEVEL WITH PEPSI COMPANY SERVICE (Supply):

S.No Market Highly satisfied Satisfied Not satisfied

1 YAMUNA VUHAR 20 16 0

2 GHONDA 18 15 3

3 BHAJANPURA 16 18 2

4 Average 18 16 2

25

20

15

10

0
yamuna vihar ghonda bhajanpura average

highly satisfied satisfied not satisfied

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It is found from table 3.8 that in all these areas majority of the retailers are highly satisfied with the Pepsi
service and less number of the retailers is satisfied with the service of the Pepsi Company. On an average of
all the markets most of the retailers’ i.e.65% is highly satisfied with the Pepsi service (supply), 33% retailers
are satisfied with the service of the Pepsi and the remaining 2% are not satisfied with the service of the Pepsi
Company. So it is concluded that the retailers are highly satisfied with the service (supply) of the Pepsi
Company.

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 SATISFACTION LEVEL OF COCA COLA COMPANY’S SERVICE (Supply):

S.No Market Highly satisfied Satisfied Not satisfied

1 YAMUNA VIHAR 22 14 0

2 GHONDA 20 14 2

3 BHAJANPURA 18 17 1

4 AVERAGE 20 15 1

25

20

15

10

0
YAMUNA VIHAR GHONDA BHAJANPURA AVERAGE

Highly satisfied satisfied Not Satisfied

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It is found from table 3.9 that on an average of all the markets 65% retailers only are highly satisfied with
the Coke service (supply), 50% retailers are satisfied with the service of the Coke and the remaining 5% are
not satisfied with the service of the Coke Company. So it is concluded that the service of the Coke Company
is moderate when compared to Pepsi Company. So here Pepsi dominated Coke in terms of the service
(supply) to the retailers.

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INTERPRETATION

On the basis research the facts which have come out:-

1.Under the brand name of coke Thumps up is market leader with 28% market share and Fanta is second
largest with 23% market share.

2.The population between 12- 30 year prefer the cola products, while population above to 50 and below 12
prefer soft drinks, and population prefer both in Tricity.

3.Only 38% population only influenced by advertisement, rest 62% population believes that Advertisements
are not much effective.

4. 45% population are loyal to words there product.

5. 54% population beliefs there cold drink have pesticide up to some extent. Instead of that they are using
other cold drinks.

6. 77% of population is being influenced by taste only, while 10 % population by Advertisements only.

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LIMITATIONS

It was our 1st research project so due to curiosity we put our whole heart on this project. But still there are
certain limitations while doing the research work. Some of the limitations are as follows.

1.One of the biggest limitations with this project work is the time factor. As we did our project in Tricity
which is not well known to us So it become difficult to conduct survey in Tricity.

2.The sample size of 40 respondents is too small to find out the consumer perception. Because we both were
covering Pepsi & Coke both.

3.There might have been tendencies among the respondents to amplifying or filter their responses under the
testing.

4.In some cases, the respondent was not giving us the proper reply. He/she might think that this is only
wastage of time or this might create some problem etc. And as a result he/she has given some fake answers
and fills the questionnaire very casually.

5.The area of study is limited and confined to certain limitation.

6.It is possible that some potential source might have remained untapped.

7.Since the result has been drawn on the basis of the information provided by the respondents therefore there
is a chance of error.

8.The questioners were in English so many people were avoiding filling the questioners

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 Chapter 5

Findings and Observations

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RESEARCH FINDINGS

As it was 1st research Project of our life, so it gave us lot of experience which will be very helpful in our life

On the basis of that research we find that in case of beverages people are much influenced by taste rather
than Advertisements and other things.

we come to know that Young generation is the biggest consumer of cold drinks than any other.

By this research we analyze that male prefer cola dinks, while female prefer soft drinks.

Frequency of consume to cold drinks is higher of male than female.

By combining all the beverage verities we come to know that Thumps up is the market leader with 14 %
total market share while Pepsi is the second highest market leader with 13% market share.

If the Buying decision of consumer is rated -

1st preference will go to Taste,
2nd will go to Brand,
3rd preference will go to schemes,
4th preference will go to Price,

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Pepsi’s graph
25

20

15

10

0
yamuna vihar ghonda bhajanpura average

highly satisfied satisfied not satisfied

Coca-cola’s graph
25

20

15

10

0
YAMUNA VIHAR GHONDA BHAJANPURA AVERAGE

Highly satisfied satisfied Not Satisfied

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 Chapter 6

Conclusions and Suggestions

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CONCLUSION

After the completion of project we have seen the different aspects of this Project. Also we have gained
some new experience about the consumer research. While surveying we have met a large number people,
with different perceptions, with different nature, and as a result of this we have learnt a lot of things like
how to talk with the different people with different behavior. We have benefited a lot and this will definitely
help us a lot in the future.

Also the outcome that came out from this research work is that in Tricity coke is the market leader
with 54% market share. Pepsi is having only 46% market share. We come to know that Pepsi is the
leading brand of Pepsi co. with 29% market share of its total market share and Thums up is the
leading brand of coke with 28% market share of itself.

Through this research we also come to know that young generation is the potential market for
beverage industry, taste is the 1st preference to choosing the product and one more important factor
that below 12 years and above to 50years people like the soft drinks while people between 12- 30 year
prefer cola drinks and rest people who comes in between 30 -50 year have common.

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RECOMMENDATION

Though the coke is enjoying about 54% of the total market share and it is market leader in Indian beverage
industry. While with the 46 % market share Pepsi is on the second step.
If we are analyzing properly then we find Pepsi is small product portfolio than coke, which is responsible for
its second position.

Pepsi should increase its product portfolio to capture the Coke’s market share.
Companies should focus on the taste of the product because 77% population is influenced by taste only.
Young generation is the potential consumer so companies should more focus on them.
As we find that 40 % population consumes 200ml cold drinks. Which comes in glass bottles, these bottles
are being retuned back for refilling to companies? Which is incurred again cost of re-transportation. If
company start to supply 200 ml cold drinks in pet bottles (plastid bottles) it will be good for company
because 40% of population is using only 200ml.

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BIBLIOGRAPHY

Internet:
www.pepsi.com

www.google.com

www.wikipidia.com

www.pepsicenter,com

www.agencyfaqs.com

www.indiainfoline.com

www.pepsicoworld.com

Books

Magazines

Research papers

Research Methodology by C.R Kothari

Marketing research by NARESH MALHOTRA

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 Questionnaire

Dear sir/ madam,

We are the student of Gian Jyoti institute of management and technology Mohali conducting a market
research on “Comparative study of customer satisfaction toward soft drinks with special reference to Pepsi
and coca-cola”. We request you to fill this questionnaire and we will collect this data only for education
purpose

Q1. NAME: ………………………………..

Q2.GENDER - MALE FEMALE

Q3.OCCUPATION -

PROFESSIONAL

BUSINESSMAN

SERVICE

STUDENT

HOUSEWIFE

ANY OTHER

Q4. AGE : 20-25 25-35

35-45 ABOVE 50

Q5. Do you take any soft drink?

a) no
b) yes

Q6. Do you take any soft drink regularly or occasionally?

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 a) regularly

b) occasionally

Q7. Which brand of cold drink you like the most?

a) Pepsi b) 7up
c) Dew d) Miranda
e) Mazza f) limca
f) thumps up g) sprit

Q8. What is the reason behind choosing your brand?

a) Taste b) advertisement
c) Easily available d) people like

Q9. How many times in a week you take cold drink?

a) Once b) thrice
c) Twice d) more than 3 times

Q10. Which quantity of your cold drink you often purchase?

a) 200ml b) 300ml
c) 500ml

Q11. Which flavor do you generally prefer?

a) Lemon b) orange
c) Cola d) others

Q12. If cola which particular brand you like?

a) Pepsi
b) coca cola

Q13. If orange which particular brand you like?

a) Miranda
b) Fanta

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Q14. If lemon which particular brand you like?
a) Dew c) limca
b) Miranda d) 7 up

Q15. Since how much time you are using your brand?
a) 1-6 month c) 1-2 year
b) 6-12-month d) more than 2 year
……………………………………

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