Major Project Report On

A STUDY OF CONSUMER PREFERENCES BETWEEN COKE & PEPSI IN NORTH WEST DELHI REGION

Submitted In Partial Fulfilment

of the Requirement

Of Bachelor of Business Administration

Internal Guide Dr. Deepali Saluja

Assistant Professor

Submitted By Anubhav gupta 06161201711 2011-14

Submitted to: Banarsidas Chandiwala Institute of Professional Studies, Dwarka, New Delhi (Affiliated to Guru Gobind Singh Indraprastha University)

BONAFIDE CERTIFICATE
This is to certify that the project work done on A STUDY OFCONSUMER PREFERENCES BETWEEN COKE & PEPSIIN NORTH - WEST DELHI REGION Submitted to Guru Govind Singh Indraprastha University, Delhi by ANUBHAV GUPTA in Partial fulfillment of the requirement for the award of degree of Bachelor of Business Administration, is a bonafide work carried out by him under my supervision and guidance. This work has not been submitted anywhere else for any other degree. The original work was carried during _____________to ______________

He has worked under my guidance.

----------------------Dr Deepali Saluja PROJECT GUIDE (INTERNAL) DATE:

COUNTER SIGNED BY:

-----------------------DR. SATISH TANEJA DIRECTOR DATE:

ACKNOWLEDGEMENT

It is my proud privilege to put on record my gratitude to all those who have been the source of guidance, co-operation and held during my course curriculum.

This project has been a great learning experience for me. It has helped to apply my theoretical knowledge into practical field.

I would like to thank Dr Deepali Saluja project guide who taught me various things and gave me necessary information to accomplish this project.

I would also like to thank my friends who have assisted me in the process where ever I got stuck.

The learning during the period was immense and valuable.

Anubhav gupta 06161201711

TABLE OF CONTENTS
S.NO 1 Executive Summary PARTICULARS PAGE NO.

Plan of the Research (Chapters) 1.1 Introduction 1.2 Objective of the study 1.3 Literature review Research Methodology: Universe & Sources of data Sample size Methods of data collection Instrument used Tools and techniques of analysis Data Collection and Data Analysis Findings & Conclusions Suggestion/ Recommendation Bibliography, Annexures

4 5 6 7 8

EXECUTIVE SUMMARY

EXECUTIVE SUMMARY

This project is an extensive research on the marketing strategies of the two carbonated beverages giants Pepsi and Coca Cola. It covers an extensive survey and depicts all graphs, fact and figures of two companies. It begins with the introduction of carbonated beverages industry and introduction of these two companies of carbonated beverages industry. It covers some of the major strategies adopted by Pepsi and Coca-Cola like their pricing policy, sales promotion and advertising policy, distribution policy etc. The project has been made interesting with the inclusion of the topics, which covers the 4Ps of marketing. The major players in the carbonated beverages industry in India are Coke and Pepsi. Pepsi holds the major market share followed by Coke. They have a cut throat competition between themselves. Whatever strategy is followed by one company, it is copied by the other. Sample of to brands were selected on the basis of there uses and notice capability. The most basic objectives of surveying program include the following: To determine the customer perception towards the carbonated beverages. To determine the number of people who prefer to buy any of the carbonated beverages. To know about the percentage of males and females aware about the brands. To create a top of mind awareness about COCA COLA and PEPSI in NORTH-WEST DELHI REGION, by providing the information to consumers. i) Primary research: A primary research was conducted. Questionnaire was prepared and covers the following areas Rohini sector- 3,4,5 and sector 11, Pitampura etc.. of North west Delhi Region. ii) Secondary research: Data was conducted from websites and catalogues to understand the product of the different players. The data collected from the websites and books was good enough to be included in the study analyzed. FINDINGS AND CONCLUSIONS These are based on the data analysis presented in earlier chapter and in the later half of this chapter recommendations are given. Also Conclusions are made on the basis of this project.

INTRODUCTION

INTRODUCTION

In the modern urban culture consumption of carbonated beverages particularly among younger generation has become very popular. Carbonated beverages in various flavors and tastes are widely patronized by urbane population at various occasions like dinner parties, marriages, social get together; birthday calibration etc. People of all ages and groups are especially attracted by the mere mention of the word carbonated beverages.

With the growing popularity of carbonated beverages, the technology of its production, preservation, transportation and or marketing in the recent years has witnessed phenomenal changes.

The so-called competition for this product in the market is from different other brands. Mass media, particularly the emergence of television, has contribute to a large extent of the ever growing demand for carbonated beverages the attractive jingles and sport make the large audience remember this product at all times.

It is expected that with the sort of mass advertising, reaching almost the entire country and offering various varieties annual demand for the product is expected to rise sharply in the times to come.

In any marketing situation, the behavioral / environmental variables relating to consumers, competition and environment are constantly influx. The competitors in a given industry may be making many tactical maneuvers in market all the time. They may introduce or initiate an aggressive promotion campaign or announce a price reduction. The marketing man of the firm has to meet all these maneuver and care of competitive position of his firm and his brand in the market. The only route open to him for achieving this is the manipulation of his marketing tactics.

In todays highly competitive market place, three players have dominated the industry; The New York based Pepsi Company Inc. The Atlanta based coca- cola and U.K. based Cadbury Schweppes. Through the globe, these major players have been battling it out for a bigger chunk of the ever growing carbonated beverages market. Now this battle has been evolved up to India too with the arrival of these three giants. Carbonated beverages industry is on amazing growth; ultimately these are only one person who will determine their fortunes. The Indian consumer the real War to quench his thirst has just begun.

THE RIVARLY BEGINS:

Coke Comes to India Coca-Cola comes to India with fanfare in the fifties. For a number of days, The Hindustan Times and other newspapers of New Banaras carried full page advertisement showing a big boy in uniform with a carbonated beverages crown as the cap. There was no indication of the product. After a few days, Coke was introduced. It was an entirely new drink which fascinated people. It soon became the national drink. For the first time, a carbonated beverages was available from one corner of the country to another. The person who brought Coca-Cola to India was the father of late Sardar Charanjit Singh, Sardar Mohan Singh. A practical man Mohan Singh realized that to popularize Coca-Cola, and make it a best seller it was necessary to catch them young. So he focused on youngsters in the society. The company realized that to become a mass consumption product, one has to go to the village. They gave much importance to the distributive network. The company trucks supplied coke to even the remotest village. Few products appears to be more similar than carbonated beverages, yet the Cola wars that mark the competition between Coke and Pepsi show how even organizations with highly similar product can be differentiated by their business strategies. Then comes battles over the issue of bottle size standardization. Coke the arch rival tried to offering more Cola at a lower price. Pepsi which had some of its early investment tied up in 250ml bottles, went the fountain way.

The General bottle size freed has settled at 300 ml. 100 ml more than the pre MNC standard. Fountain mix dispensers, carry home bottles, even 1.50 plastic bottle with caps good enough to keep them lying down and still preserve the fizz.

It poured in vast sums to whip up its visibility at the retail level, so that consumers were greeted virtually at every street corner by Pepsis blue, red and white colors, because they have perception the thing on display sells more. Coca-Cola is, finally, redoing the real thing to the replicate the success that its arch-rival, PepsiCo. Has achieved with its fast and furious marketing. But to win them, Coke is copying Pepsi.

OBJECTIVE OF THE STUDY

The basic objective of the study is to know about the consumers preferences for COCA COLA and PEPSI.

To know the percentage of males and females those are aware about the brands. To know which brands advertisement mostly people have seen.

To know the reason to buy carbonated beverages.

To know whether the advertisement being noticed by the consumer or not.

To create a top of mind awareness about COCA COLA and PEPSI in NORTH-WEST DELHI REGION, by providing the information to consumers.

LITERATURE REVIEW
The coke and Pepsi settle trademarks lawsuit : The Coca-Cola Company and PepsiCo have settled a trademark lawsuit over PepsiCos Trop50 juice packaging design, which Coca-Cola had claimed was too similar to that of its Simply juice range. Terms of the settlement were not disclosed, but US District Judge Sim Lake signed an order to dismiss the suit late last week. Coca-Cola had alleged that PepsiCo was trying to piggyback on the success of its billion-dollar Simply brand by confusing consumers with similar packaging, while diluting the quality of the Coke juice brand. Coca-Cola introduced its Simply juice line in 2001 with Simply Orange, and Simply Grapefruit and Simply Apple juices followed. The design is a carafe-style bottle with an oversized green cap. (Beverage daily in regulation-safety on 10-May-2011)

Reformaulation of carbonated drinks could slash more than 6000 calories per year:Using stevia to reformulate just 20% of carbonated soft drinks could slash more than 6,000 calories peryear from the diet of consumers, says Diana Cowland of Euromonitor International. If manufacturers were to reformulate around one fifth of carbonated drinks to containless sugar using stevia, it can be estimated that consumers could achieve an annualreduction of between 6,000 and 10,000 kcal per person. Euromonitor International has estimated that if full-sugar carbonates were reformulatedto contain stevia and hence saw a 30% calorie reduction, a 330ml can of colacarbonates, which contains 139kcal, could be reduced down to 97kcal. If 20% of all regular carbonates were reformulated, a person who consumed two cansper day an amount not wholly inconceivable would see a reduction of 6,132 kcalannually. If the proportion of sugar removed increased to 50%, which is now a clear opportunitydue to recent innovations such as the steviol glycoside blend Reb X developedthrough a partnership between PureCircle and The Coca-Cola Co (TCCC) it wouldresult in a calorie reduction of 10,147 kcal annually - based on the same one personconsuming two cans per day. Additionally, if 20% of conventional carbonates were repositioned as reduced-sugar carbonates, the latter couldsee consumption of almost 60 billion litres by 2017, representing equivalent to 34% of all carbonates in volumeterms. Why soft drinks? Soft drinks are the most widely used vehicle for stevia, and the category offers the best opportunity formanufacturers to have an impact on an individuals sugar intake and hence calorie intake; which is an area of highinterest to consumers and manufacturers alike.As

reduced-sugar carbonates are the largest contributor to reduced-sugar soft drinks consumption, substitutingstandard carbonates for reduced-sugar versions is one of the most obvious ways for consumers to reduce theirsugar intake. Weight loss without changing dietary habits Whilst this reduction alone might appear small and, singlehandedly, would not curb the growth in the overweightand obese population, it could still have an impact. If, for example, the loose and highly debated formula of a calorie deficit of 3,500kcal is equivalent to a loss of 1lb inbody weight per year, and 20% of full-sugar carbonates are reformulated, it could lead to a per capita weight loss of1.7lb annually without any change in dietary habits. When it comes to weight management, this is a proposition many consumers would be pleased to accept. Focus on countries with high reduced-sugar soft drinks consumption However, demand for reduced-sugar soft drinks is not universal. Therefore, formanufacturers looking for potential opportunities to reformulate with stevia, thefocus should be on markets with high consumption of reduced-sugar soft drinkvariants. It is evident that, to some extent, this strategy has already been adopted bymanufacturers, as TCCC has piloted its first stevia-sweetened Coca-Cola,CocaCola Life, in Argentina, the top market for reduced-sugar soft drinks, interms of per capita consumption. There have also been recent developments in the US. In February 2014, DrPepper Snapple announced that it is going to launch stevia-sweetenedvariants of its 7-Up, Dr Pepper and Canada Dry brands in the US later in the year. Reducing sugar intake can target the mass market :However, the recent concern from scientists and consumers over sugar demonstrates how a low-sugar diet is nolonger limited to more healthconscious consumers, and hence stevia-sweetened beverages have the potential totarget the mass market.Indeed, a growing number of reports, both in the scientific press as well as the media, are now linking a high sugardiet not just to weight gain but also to the rapid growth of diet-related chronic diseases such as type 2 diabetes. In early 2014, some protagonists went as far as to say that sugar can have the same dangers as tobacco.Stevia is, therefore, set to gain further traction from the demise of sugar, and is almost becoming mainstream asmanufacturers see the benefits in lowering the calorie content of a product whilst still retaining a 'natural' image (Beverage daily, sector- soft drinks and water ,By Diana Cowland, 21-march-2014 page 10)

A study of factor responsible for brand preference in fmcg sectors: The purpose of this paper is the study of factors responsible for brand preference in fmcg products, increasing competition, more due to globalization, is motivating many companies to base their strategies almost entirely on building brands. Brand preference means to compare the different brands and opt for the most preferred brand. This brand preference is influenced by various factors. According to this study many factors were find out for preferring a brand like Brand persona, Brand constancy, Brand loftiness, Brand value. In the identification of factors affecting the brand preference, it was concluded that brand persona is the most effective factor that affects the brand preference. This brand persona deals with the personality aspects or the external attributes of brand, thus it can be said that consumer prefer any brand by looking at the external attributes of a brand. (ims, noida journal vol 5 no.1, june 2008 by Dr. Jayant Sonwalkar, page-5)

Colour and flavour rule of consumer preference study: The intensity of colour and the flavour are the key drivers behind consumer acceptance of beverages, says a new study involving DANONE. But packaging and labelling are not as important for winning over consumers, according to findings published in the journal Food Quality and Preference, The study involved consumers at different stages of development and highlights the importance of adopting a sensory marketing approach, said the researchers from French research organisation Adriant, the University of Rennes 1, DANONE R&D, and Institute Paul Bocuse. Companies need to continuously innovate to maintain market leadership, wrote the researchers. When the market is overloaded the challenge consists in creating innovative products able to attract and satisfy consumers.This experiment showed the feasibility of the proposed multi-sensory design method based on mixed qualitative and quantitative approaches. The study also demonstrates the importance of flavour and colour selection for new products. The global flavours market was been valued at some US$18bn in 2006 (Business Insights). Meanwhile, the value of the international colourings market was estimated at around $1.15bn in 2007 (731m), up 2.5 per cent from $1.07bn (680m) in 2004, according to Leatherhead Food International (LFI). Natural colours now make up 31 per cent of the colourings market, compared with 40 per cent for synthetics, according to LFI. Bombarding the senses : By choosing to formulate a new beverage, the researchers noted that the new product would need to be differentiated by improving the sensory characteristics.

Four factors were identified for the formulation: four colour intensities), three flavourings, two label types (soft versus hard), and two pack sizes (standard versus oversize). By using both quantitative (hedonic testing) and qualitative (focus groups) approaches, the researchers found that the main factors which drive consumer preference for this concept are colour intensity and flavouring. Indeed, colour intensity accounted for 43 per cent and flavour 32 per cent of the consumers overall liking. Pack size and label type are taken into account by the consumer to a lesser extend, they added. This methodology of a qualitative screening associated to a conjoint analysis on relevant sensory attributes has shown good performances to fit consumers expectation: it has now to be reproduced, as every brand, concept and product is a unique combination designed for a specific consumer group, concluded the researchers (Food quality and preference vol 19, issue 8, pages 719-726 by Stephen Daniells 07-Oct-2008) Taste or health a study on consumer acceptance of carbonated beverages: This study examined the relative contributions of taste and health considerations on consumer liking and purchase intent of carbonated beverages. Eight types of commercial carbonated beverages were evaluated by 305 adult consumers who also completed a brief questionnaire on food habits. Data were analyzed using factor analysis. Results revealed that purchase intent of carbonated beverages was strongly related to degree of liking and to several key sensory attributes including saltiness, drinks flavor and greasiness. These variables emerged as the first factor in the analysis, suggesting that consumers perceive these characteristics as being most important in their choice of carbonated beverages. Factor 2 described a health dimension and was related to respondents' attitudes toward fat in the diet. Factor 3 comprised two remaining sensory attributes (color and crunchiness), which apparently were of minor importance to the respondents. These data suggest that in spite of current concern about reducing dietary fat, health remains secondary to taste in the selection of carbonated beverages for consumers in this population. (Beverly J. Tepper and Amy C. Trail Journal of Food Science and Technology, 15 September 1998 Consumer awareness and Consumption pattern of food products: This paper aims to investigate the degree of brand awareness of various food products in relation to background and education of the household, the consumption pattern of various food products consumed by respondents in the light of their areas, income levels and education. a sample of200 respondents comprising 100

form rural area and 100 from urban area were taken. Data are analyzed with the help of mean.SD, co efficient of variance-test and f-test. The finding of this study reveals that there is low degree of brand awareness in rural areas, whereas there is a moderate degree of brand awareness in urban India. The highly educated rural and urban respondents have high degree of brand awareness for many food products, and the less educated rural and urban respondents have low degree of brand awareness for many food products. (Journal of ims vol 3 no.1,june 2007 by Singh h ,page-24-33)

COMPANYS PROFILE

COCA COLA COMPANY PROFILE

Keeping in view of tapping the Indian carbonated beverages market and also developing carbonated beverages as a drinking product among Indians. The Coca-Cola in India has setup an independent organizations which is H.C.C & B.C.C with a capital of 350 U.S.$ each by virtue of sellout decision of the passed managing director Sh. S. C. Aggarwal.

Hindustan Coca-Cola bottling (N-W) Pvt. Ltd. Najibabad took the complete possession of this plant, land, machinery, & intellectuals on February 14 1998 and since then H.C.C, looking after all its affairs under company owned bottling plant to establish integrated marketing system in the area.

The world is changing all around us. To continue to thrive as a business over the next ten years and beyond, we must look ahead, understand the trends and forces that will shape our business in the future and move swiftly to prepare for what's to come. We must get ready for tomorrow today. That's what our 2020 Vision is all about. It creates a long-term destination for our business and provides us with a "Roadmap" for winning together with our bottling partners.

CORE BRANDS:

Coca-Cola: Developed in a brass pot in 1886, coca-cola is the most recognized and admired trademark around the globe. Not to mention the best selling carbonated beverages in the world.

Sprite: In 1961, a citrus-flavored drink made its U.S debut, usingSprite Boy as inspiration for its name. This elf with silver hair and a big smile was used in 1940s advertising for Coca-Cola. Sprite is now the fastest growing major carbonated beverages in U.S and the worlds most popular lemon-lime carbonated beverages.

Fanta : The name fanta was first registered as a trademark in Germany in 1941 ,when it was used for a few year for a carbonated beverages created from available materials and flavors . The name was then revived in 1955 in Naples, Italy, when it was used for the: fanta orange drink we know today. It is now the trademark name for a line of flavored drinks around the world. Diet coke: The extension of the coca-cola name began in 1982 with the introduction of diet

coke (also called coca-cola light in some countries). Diet coke quickly becomes the number one selling low calorie carbonated beverages in the world.

HISTORY IN INDIA

Coca-cola in India

Coca-Cola, the corporation nourishing the global community with the worlds largest selling carbonated beverages concentrates since 1886, returned to India in 1993 after a 16 year hiatus, giving new thumbs up to the Indian carbonated beverages market. In the same year, the Company took over ownership of the nations top carbonated beverages brand and bottling network. Its no wondering our brands assumed an iconic status in minds of worlds consumers.

PEPSICO COMPANY PROFILE

PEPSICO
SNACKS FOODS
BEVERAGES
RESTAURANTS PEPSI-COLA
INTERNATIONAL PEPSI CO

FRITO LAY

PFI

PEPSI

KFC

RESTAURANTS
INTERNATIONAL

PIZZA HUT
TACO BELL

PFSO

PepsiCo is one the largest companies in the U.S. It figures amongst the largest 15 companies worldwide according to the number of employees hired. It has a U.S. Fortune rank of 50.The company profits for 1997 were $2.14 billion on revenues of $20.92 billion and Pepsi is bottled in nearly 190 countries. PepsiCo is a world leader in convenient snacks, foods and beverages with revenues of more than $43 billion and over 198,000 employees. Take a journey through our past and see the key milestones that define PepsiCo.

PepsiCo is a world leader in the food chain business. It consists of many companies amongst which the prominent once are Pepsi-Cola, Frito-Lay and Pepsi Food International. The group is presently into two of the most profitable and profitable and growing industries namely, beverages and snack foods. It has scores of big brands available in nearly 150 countries across the globe. The group has established for itself once of the strongest brands in various segments of its operations.

The beverages segment primarily markets its Pepsi, Diet Pepsi, Mountain Dew and other brands worldwide and 7-UP outside the U.S. markets. These are positioned in close competition with Coca-Cola Inc. of USA.

PEPSICO IN INDIA

PepsiCo gained entry to India in 1988 by creating a joint venture with the Punjab governmentowned 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. 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." In 2003, the Centre for Science and Environment (CSE), a non-governmental organization in New Delhi, said aerated waters produced by carbonated beverages manufacturers in India, including multinational giants PepsiCo and The Coca-Cola Company, contained toxins, including lindane, DDT, malathion and chlorpyrifos pesticides that can contribute to cancer, a breakdown of the immune system and cause birth defects. Tested products included Coke, Pepsi, 7 Up, Miranda, Fanta, Thumps Up, Limca, and Sprite. CSE found that the Indian-produced Pepsi's carbonated beverages products had 36 times the level of pesticide residues permitted under European Union regulations; Coca Cola's 30 times. CSE said it had tested the same products in the US and found no such residues. However, this was the European standard for water, not for other drinks. No law bans the presence of pesticides in drinks in India. The Coca-Cola Company and PepsiCo angrily denied allegations that their products manufactured in India contained toxin levels far above the norms permitted in the developed world. But an Indian parliamentary committee, in 2004, backed up CSE's findings and a government-appointed committee, is now trying to develop the world's first pesticides standards for carbonated beverages. Coke and PepsiCo opposed the move, arguing that lab tests aren't reliable enough to detect minute traces of pesticides in complex drinks.

As of 2005, The Coca-Cola Company and PepsiCo together hold 95% market share of carbonated beverages sales in India. PepsiCo has also been accused by the Puthussery panchayat in the Palakkad district in Kerala, India, of practicing "water piracy" due to its role in exploitation of ground water resources resulting in scarcity of drinking water for the panchayat residents, who have been pressuring the government to close down the PepsiCo unit in the village. In 2006, the CSE again found that soda drinks, including both Pepsi and Coca-Cola, had high levels of pesticides in their drinks. Both PepsiCo and The Coca-Cola Company maintain that their drinks are safe for consumption and have published newspaper advertisements that say pesticide levels in their products are less than those in other foods such as tea, fruit and dairy products. In the Indian state of Kerala, sale and production of Pepsi-Cola, along with other carbonated beverages, was banned by the state government in 2006, but this was reversed by the Kerala High Court merely a month later. Five other Indian states have announced partial bans on the drinks in schools, colleges and hospitals.

PEPSI PRODUCTS IN INDIA

7UP Aquafina Duke's Gatorade Mirinda Mountain Dew Nimbooz Pepsi Slice Tropicana Cheetos Kurkure Lays Lehar Namkeen Quaker Oats Uncle Chipps

PEPSI VS. COKE

Pepsi: Growing, profitable company; overpriced stock.

PepsiCo revenues spiked 33.8% to $62.4 billion in the last year, and its net income rose 6.3% to $6.3 billion yielding a wide 10.2% profit margin. But its price/earnings-to- growth ratio is an overvalued 2.09 (where 1.0 is considered fairly valued) with a P/E of 15.7 on earnings forecast to grow 7.5% to $4.74 in 2012.

Coke: Growing, profitable company; slightly overpriced stock.

Coca-Cola revenues are up 13.3% in the last year to $32.2 billion, and its net income spiked 73% to $12.5 billion earning a whopping 29.8% net profit margin. And its PEG is a reasonable 1.28 on a P/E of 12.5 with earnings forecast to grow 9.8 to 4.23 in 2012.

Pepsi v Coca-Cola war turns hot

The ongoing cola war between global rivals Pepsi and Coca-Cola has taken a weird twist in India with the former dragging the latter to court. The charge: Coca-Cola has snatched employees, bottlers, and agents, all of whom are bound to Pepsi by a contract. Pepsi has charged Coke with having entered into a conspiracy to disrupt its business operations by inducing key employees and associates to break existing contracts illegally. Pepsi has sought a permanent injunction and an ex parte order against coke, restraining it from taking away Pepsi's employees and business associates. Pepsi has also reserved the right to seek financial damages from Coke at a later date if necessary. Pepsi has claimed that a dozen middle-level managers and three territory managers broke their contracts with Pepsi to join Coke in recent months, while during the last year and half, seven managers quit Pepsi to join Coca-Cola. Justice C M Nair of the Delhi high court on April 17 issued notices and summons to Coca-Cola and 15 others for May 6. However, Justice Nayar refused to grant the ex parte injunction sought by Pepsi India to stop the alleged inducements by Coke in offering employment to Pepsi's employees while the suit was pending in court. On behalf of Pepsi, Ashok Desai and Arun Jaitley contended that Coca-Cola had been "rattled by the huge success of Pepsi in India entered into a conspiracy during the last six months to cause loss and damage to Pepsi's business interests by adopting unfair and illegal means." It added that Coca-Cola had approached many key managers and had successfully lured a commercial manager of its bottling business Gaurav Duggal, and a manager in Surat Sailesh Joshi, besides others. Pepsi charged that while initially these approaches were sporadic, over the last six months it is clear that Coca-Cola has changed its strategy and has decided to consciously target and approach key employees of Pepsi at various locations in India.

The company has alleged that in most cases, the employees have not been given time to adhere to the 90-day notice period and the one-year confidentiality agreement. The latter deal bars employees joining its rivals for at least a year. Pepsi has cited the instance of Coke snapping up cricketer Javagal Srinath in spite of the latter signing a contract with Pepsi's sports consultant, 21st Century Media. However, media reports, quoting sources, said that Srinath's contract had been only in the verbal stage. Similarly, Pepsi has charged Coke with inducing the Board of Control for Cricket in India to give the sponsorship of the recently concluded Pepsi Triangular Cricket Series to Coke, as acknowledged in the BCCI submission before the Bombay high court, even while a contract was signed with Pepsi. Pepsi has listed the case of Coke trying to induce its music consultant DNA Networks Private Ltd, which organized the Yanni show, to snap its ties with Pepsi and join Coke. Incidentally, in results announced for the first three months of the year, Pepsi has swept CocaCola aside. Pepsi has reported a growth of 27 per cent compared to Coke's 21 per cent during the same period. In the first three months of last year, Pepsi grew by 18 per cent only. .

RESEARCH METHODOLOGY

INTRODUCTION OF THE RESEARCH WORK

This report attempts to study the marketing mix keeping in mind the current market situation. Besides, this report also studies the customer feedback about the COCA COLA and PEPSI. Thus it can be said that there are two broad goals of the research i.e. TO STUDY THE CONSUMERS PREFERENCE FOR COCA COLA AND PEPSI as a whole and other to CREATE A TOP OF MIND AWARENESS OF COCA COLA AND PEPSI. The research work was done through the collection of primary data and secondary data by a common questionnaire through the market survey technique.

RESEARCH METHODOLOGY

Methodology is an essential aspect of any project or research. It enables the researchers look at the problem in a systematic, meaningful and orderly manner. Methodology comprises the sources of data, selection of data, various designs and techniques used for analyzing the data.

1. Collection of data

Primary research: The primary data are collected through survey method. Survey method is undertaken to find the customer satisfaction and opinion. Surveys are conducted about the intentions of consumers, opinion of experts or of markets. This method is usually suitable for short-term forecasts due to volatile nature of consumers intentions. A survey was conducted among the people of Delhi by the aid of well structured questionnaire.

Secondary research: Data was conducted from websites and catalogues to understand the product of the different players. The data collected from the websites and books was good enough to be included in the study analyzed. The secondary source didnt provide any personal views of the customers on the existing sales strategy but were a great help in completing the report and getting the details about the companys products

2. Sampling unit and sample size The sampling unit for the study is 104, which includes the customer preference for coke and pepsi. The sampling size includes male and female users from different occupation, age. The sampling size was restricted to 104 because of the time constrains. Here, convenient sampling technique has been adopted for collecting the primary data.

3. Statistical tools

For analyzing the data, Google spreadsheet, statistical tables, pie charts, bar charts and percentages are used.

DATA COLLECTION & ANALYSIS

TABLE 1 Q. Gender of the respondents

Male Female Total 55 49 104 53% 47% 100%

GENDER

MALE FEMALE 47% MALE 53% FEMALE

ANALYSIS & INTERPRETATION:

From the table, and pie chart depicted above, the distribution of the consumers is evident. Of the 104 respondents who answered the questionnaire, 53% were male and 47% were female. It is evident from the responses and the subsequent tabulation that the number of male respondents was higher than that of the male respondents in the population under study. Male are the major buyers.

By analyzing the responses to this question, I as a researcher, as well as companies, can identify the distribution in the number of men and women who and appropriate decisions can be made keeping these numbers in mind. The highest number of respondents were male, as is depicted by the graph and chart presented above. The number of female respondents was less compared to the male respondents

TABLE 2 Q. Age of the consumer

15-20 21-35 36-45 46-55 55 & above Total 36 60 04 03 01 104 35% 58% 4% 3% 1% 100%

3% 4%

AGE GROUP
1%

35%

15-20 21-35 36-45

57%

46-55 55 & above

ANALYSIS & INTERPRETATION From the table, and pie chart depicted above, the distribution of the population under study is evident. Of the 104 respondents who answered the questionnaire, 57% indicated that their ages fell in the category 21-35 years, 35% indicated 15-20 years, 04% indicated 36-45 year, 3% indicated 46-55 and 1% indicated 55 above.

By analyzing the responses to this question, I as a researcher, as well as companies, can identify the demographics of the population that are being mentioned in the study. The highest number of respondents falls in the age group 21-35. It can be deduced that most of the consumers who drinks any carbonated beverages regularly are the youth. They make up almost more than half of the population who prefer to buy any of the cold drinks.

TABLE 3 Q. Occupation of the consumers

Student Business Service Professional Any other Total 58 5 15 22 04 104 56% 05% 14% 21% 04% 100%

Any other 4% Professional 21%

OCCUPATION

Student Business Service

Service 14%

Student 56%

Professional Any other

Business 5%

ANALYSIS & INTERPRETATION From the table, and pie chart depicted above, the distribution of the population under study is evident. Of the 104 respondents who answered the questionnaire, student 56%, business 05%, service 14%, professional 21%, any other comprises 4%. The major respondents are students. By analyzing the responses to this question, I as a researcher, as well as companies, can identify the demographics of the population that are being mentioned in the study. The highest number of respondents falls in the students category. The appropriate decision can be taken by keeping these things in mind.

TABLE 4 Q. Which brand will you prefer of carbonated beverages?

Pepsi Coke Other Total 45 51 06 102 44% 50% 6% 100%

Other 6%

BRAND

Pepsi Pepsi 44% Coke 50% Coke Other

ANALYSIS & INTERPRETATION: From the table, and pie chart depicted above, the distribution of the population under study is evident. Of the 102 respondents who answered the questionnaire, Coke 50% and Pepsi 44%. By analyzing the responses to this question, I, as a researcher, as well as companies, can identify the demographics of the population that are being mentioned in the study. From the above analysis it can be seen that the major respondents prefer coke.

TABLE 5 Q. How often you take carbonated beverages?

Once a day Once a week Fortnightly Monthly Total 16 56 10 19 101 16% 55% 10% 19% 100%

Once a day

Once a week

Fortnightly

Monthly

Monthly 19% Fortnightly 10%

Once a day 16%

Once a week 55%

ANALYSIS & INTERPRETATION: From the table, and pie chart depicted above, the distribution of the population under study is evident. Of the 101 respondents who answered the questionnaire, 16% mentioned that they take carbonated beverages once a day, 55% prefer to take once a week, 10% preferred that they take fortnightly and 19% were the monthly. By analyzing the responses to the question it is seen that major respondents preferred to take carbonated beverages once in a week. While conducting the survey it was observed that college going students mentioned that they prefer to take carbonated beverages whenever they had lunch especially in summer.

TABLE 6 Q. Which drinks people prefer the most

Pepsi Coke Any other Total 37 51 8 96 39% 53% 8% 100%

Prefered Carbonated Drinks

Any other 8% Pepsi 39% Coke 53%

Pepsi Coke Any other

ANALYSIS & INTERPRETATION: From the table, and pie chart depicted above, the distribution of the population under study is evident. Of the 96 respondents who answered the questionnaire, 39% respondents prefer Pepsi, 53% prefer Coke and 8% preferred others as the most preferred carbonated beverages. By analyzing the responses to this question, I as a researcher, as well as companies, can identify the demographics of the population that are being mentioned in the study. From the above analysis it can be seen that the major respondents mentioned Coke as their most preferred drink. Respondents said that they prefer Coke as it refreshes their mind and its flavor is better than any other carbonated beverages.

TABLE 7 Q. People who have seen the advertisements of any carbonated beverages:
Yes No Total 100 1 101 99% 1% 100%

No 1%

Yes Yes 99%

No

ANALYSIS & INTERPRETATION: From the table, and pie chart depicted above, the distribution of the population under study is evident. Of the 101 respondents who answered the questionnaire, there were 99% respondents who mentioned that they have seen the advertisement of any carbonated beverages and 01% were those who havent seen any advertisement.

By analyzing the responses to this question, I, as a researcher, as well as companies, can identify the demographics of the population that are being mentioned in the study. From the above analysis it can be seen that the major respondents said that they have seen the advertisements which shows that people are aware of the promotional campaigns operated by the companies through advertisements.

TABLE 8 Q. Advertisements of which carbonated beverageswhich affect the choice of drink of people
Strongly Agree Agree Strongly disagree Disagree Neither Total 18 38 06 13 13 88 20% 43% 07% 15% 15% 100%

Advertisement Affects the Choice of Drink

Neither 15% Disagree 15% Agree 43% Strongly Agree 20%

Strongly Agree Agree Strongly disagree Disagree

Strongly disagree 7%

Neither

ANALYSIS & INTERPRETATION: From the table, and pie chart depicted above, the distribution of the population under study is evident. Of the 88 respondents who answered the questionnaire, 20% respond strongly agree that the advertisement affects the choice of drink, 43% respond mention to Agree, 07% preferred that they strongly disagree, 15% preferred disagree and Neither advertisement affects their choice of drink. By analyzing the responses to the question it is seen that major respondents agree that the advertisement affects the choice of drink.

TABLE 9 Q. Factors that influence the purchase decision. Rate the factors (5- being most influential)
Quality Price
Design of the Bottle

1 2% 5% 2% 3% 4% 1% 2% 3% 3% 11%

2 7% 8% 4% 6% 6% 4% 4% 11% 5% 4%

3 24% 26% 30% 33% 37% 8% 16% 24% 18% 33%

4 31% 39% 33% 30% 23% 37% 35% 35% 42% 40%

5 36% 22% 31% 28% 30% 50% 43% 27% 32% 12%

Total 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

Advertisement Trendy Slogan Brand name Reputation Circle of friend Life style Boring trendy

Factors that Influence the Purchase Decision

60 50 40 30 20 10 0

ANALYSIS & INTERPRETATION: From the table, and bar chart depicted above, the distribution of the population under study is evident. Of the 100% respondents who answered the questionnaire, the major rating was given to the brand name factor i.e 50% and the minimum was given to boring trendy factor i.e 12%. Others being same that is shown in the pictorial graph.

TABLE 10 Q. Promotional offers that attracts people the most?

Free gifts Price offer Any other Total 32 63 5 100 32% 63% 05% 100%

Promotional offers
Any other 5% Free gifts Price offer Any other Free gifts 32%

Price offer 63%

ANALYSIS & INTERPRETATION:

From the table, and pie chart depicted above, the distribution of the population under study is evident. Of the 100 respondents who answered the questionnaire, 32% respondents mentioned that free gifts influence their purchase decision while 63% respondents mentioned Price offer to be the most influencing factor and 05% comprises of the others. The graph shows respondents were majorly influenced by the price offer.

By analyzing the responses of the people surveyed it was observed that there were many other factors that influence the purchase decisions of the consumers. Some of the respondents mentioned that the Taste Flavors and some mentioned celebrities promotion influences their purchase decision the most. By this it can be said that companies need to be more effective in adding flavours to their products and also should be effective in celebrities promotion.

TABLE 11 Q. Mode of advertisement that influence the purchase decision?(very much=5, much=4, neither=3, little=2, very little=1)
1 T.V Hoardings Newspaper Magazines Brochures Internet 3 2 4 6 11 7 2 5 13 17 14 15 9 3 15 30 32 30 28 20 4 24 33 20 25 21 27 5 53 22 27 25 25 37 Total 100 100 100 100 100 100

60 50 40 30 20 10 0 T.V Hoardings Newspaper Magazines Brochures Internet

ANALYSIS & INTERPRETATION: From the table, and bar chart depicted above, the distribution of the population under study is evident. Of the 100 respondents who answered the questionnaire, 28% mentioned TV as a very much influencing mode of advertisement, 20% mentioned internet, 14% mentioned newspapers and 13% mentioned magazines andbrochures as influencing mode of advertisement while 12% mentioned hoardings as an effective mode of advertisement that influence their purchase decision.

TABLE 12 Q. If the preferred brand is not available for repeat purchases then what will you do?
Postpone your purchase Switch over to other brand Total 38 62 100 38% 62% 100%

Preferred Brand not available for repeat purchases

Postpone your purchase 38%

Postpone your purchase Switch over to other brand

Switch over to other brand 62%

ANALYSIS & INTERPRETATION: From the table, and pie chart depicted above, the distribution of the population under study is evident. Of the 100 respondents who answered the questionnaire, 38% said that they will postpone their purchase and 62% said that they switch over to other brand if the preferred brand is not available for repeat purchases. It is being observed that little percent of the people are loyal to their brand and most percent of respondents said that they will switch over to other brand.

TABLE 13 Q. If another brand of same product appears in the market; will you prefer to stop buying this brand and buy the new brand?
No I may consider Yes Cant say Total 19 57 12 12 100 19% 57% 12% 12% 100%

No

I may consider Cant say 12%

Yes

Cant say

Yes 12%

No 19%

I may consider 57%

ANALYSIS & INTERPRETATION: From the table, and pie chart depicted above, the distribution of the population under study is evident. Of the 100 respondents who answered the questionnaire, 57% mentioned that they may consider, 19% said no, 12% said yes and 12% said cant say when asked about their preference to stop buying their brand if a similar product of another brand enters in the market.

TABLE 14 Q. Company which is more effective in advertising

PEPSI COKE TOTAL 44 56 100 44% 56% 100%

pepsi 44% coke 56%

pepsi coke

ANALYSIS & INTERPRETATION: From the table, and pie chart depicted above, the distribution of the population under study is evident. Of the 100 respondents who answered the questionnaire, 44% mentioned coke as most effective in advertising and 44% mentioned pepsi. Being observed in the survey, people said that coke is delivering most effective advertising while they also mentioned that pepsi needs to improve their advertising to compete with Coke.

FINDINGS & CONCLUSION

FINDINGS

In all about 104 consumers were interviewed. The findings that one can draw from these answers provided by the consumers showed that marketing activities do form a major part of the decision. One thing that was common amongst all the consumers who were once a day or once a week. The number one factors the influences a customer while buying a carbonated beverages was taste. This was true for all the consumers who were interviewed. The rest of the conclusions as deducted from the questionnaires are as follows: The younger generation preferred carbonated beverages to the older generation. Children preferred Coca-Cola Fanta, Mirinda orange. Young adults liked Pepsi. The older generation preferred Coca-Cola, Limca & Mirinda Lemon. a. Children up to 15 years of age liked to have carbonated beverages up to 2-3 times a day. b. Young adults liked to have carbonated beverages up to 1-2 times a day. c. Adults liked to have carbonated beverages about once or twice a week.

The reason given for choice of favorites carbonated beverages was taste and easy availability. Only if the consumer liked the taste of drink, he would have it again.

95% of the consumers felt that marketing strategies of the company did affect the sales of their carbonated beverages. Marketing strategies made the consumer try a drink for the first time. The second time round it was the consumers choice himself and not strategy could affect that.

Youngsters were more acceptable to change. They tried different drinks, carbonated drinks and non- carbonated drinks. Adults stick to one and they prefer drinks that do not affect their health, like Limca.

Major number of people found television advertising to be the most effective. Young and the old liked to watch the advertisements on television.

Sponsoring events, outdoor advertising and sales promotion schemes were second choice of the consumers. Under television advertising, Pepsi came in as the number 1 favorite of the people the advertisement of RANBIR KAPOOR- CHANGE THE GAME was the favorite of the consumers. The new advertisement of Mirinda of ASIN is also lifted by the people. The advertisement that came in the mind of the children below 15 was Taste ka jaadu chchae- animated advertisement of Fanta. These, advertisement remained most in the minds of the people.

Most of the consumers felt that Pepsi was the market leader in the carbonated beverages industry, in Delhi well as in India.

Women and children prefer cans as compared to men.

These are the major conclusion that can be drawn about a consumers behavior. Companies must take the initiative of finding out the habits of the consumers and then changing them, in their favor.

CONCLUSION
During the course of the project I realized that the customer willingly answered the closed end questions. From the analysis of the data collected and from the experiences I have reached the following conclusions:

COKE is most popular amongst its users mainly because of its TASTE, BRAND NAME, INNOVATIVENESS Thus it should focus on good taste so that it can capture the major part of the market.

Wecome to the conclusion that visibility affects the sales of project in a very special way and in terms of the advertisements lays is lacking behind, mostly consumers remember the advertisement because of the frequency of add and brand ambassadors, creativity.

After acquiring a new customer, there is lot of importance of its retention also. This can be done only by providing extra flavors and good taste

In todays scenario, customer is the king because he has got various choices around him. If you are not capable of providing him the desired result he will definitely switch over to the other provider. Therefore to survive in this cutthroat competition, you need to be the best. Customer is no more loyal in todays scenario, so you need to be always on your toes.

These are the major conclusion that can be drawn about a consumers behavior. Companies must take the initiative of finding out the habits of the consumers and then changing them, in their favor.

SUGGESTIONS

SUGGESTIONS
On the basis of above study following suggestions can be given:

Perform a detail demand survey at regular interval to know about the unique

needs and

requirements of the customer..The company should be always in a position to receive continuous feedback and suggestions from its customers/ consumers.

The company should focus to bring some more flavours and variety of schemes rather then bring second and repeat same old one.

The company must be aware of and keep at least the latest knowledge of its primary competitors in market and try to make perfect anticipated efforts to meet the same.

The company should also use time to time some more and new attractive system of word of mouth advertisement to keep alive the general awareness in the whole market as a whole. .

The visibility of any product plays an important role in making the customer, aware about it and is vital for the growth and development of any product.

For their advertisement they can also introduce a brand ambassador, because most of the consumers remember advertisement because of their brand ambassador.

We feel that there is cutthroat competition between COKE and PEPSI so to be on top of mind of the customers they need to do something outstanding every time.

LIMITATIONS OF THE STUDY

Some of the respondents refused to fill the questionnaires.

The responses may vary as some people did not want to come up with real answers.

The people were busy in their own work so they might not have given actual responses..

Limitation of time.

The survey is conducted only in few areas of North-West Delhi hence the results may vary in other parts of the cities.

Small sample size.

And like any other research the limitation of personal bias of respondents limits the scope of the study.

The findings are based on the survey conducted in the month of FEBRUARY and MARCH; the results may vary in other months.

BIBLIOGRAPHY

BIBLIOGRAPHY
TEXT BOOKS: Kotler Philip, Marketing Management, Pearson Education. Twelth edition, page no.174176 Beri G.C, Marketing Research, Third Edition. Tata Mc Graw Hills, pg. no. Schiffman Leon G. & Kaunk Leslie Lazar, Consumer Behavior Pearson Education, Eighth Edition. Pg. no. 125-129

Journals: Livingstone (2006), Television of Food and Drink products to Children, retrieved in January 2008, pp. 4-9 Prithvi, R. (1997), Perception and Behavior of Consumers towards Carbonated beverages. Indian Journal of Marketing. 28: 1-4 Mahajan, R.Gupta, B and Khanna, (2004). Brand preference of Carbonated beverages among Urbanities. 35(1): 19-22 WEBSITES: -http://www.beveragedaily.com/Regulation-Safety/Coke-and-Pepsi-settle-trademarklawsuit?utm_source=copyright&utm_medium=OnSite&utm_campaign=copyright -http://www.beveragedaily.com/Sectors/Soft-Drinks-Water/Reformulation-of-carbonated-drinkscould-slash-more-than-6-000-calories-per-year -http://www.beveragedaily.com/Markets/Colour-and-flavour-rule-consumer-preferences-Study http://www.pepsico.com http://www.coke.com www.pepsiproducts.in www.cocacolaprodcts.in

ANNEXURES

ANNEXURES
Topic: A STUDY OFCONSUMER PREFERENCES BETWEEN COKE & PEPSIIN NORTH WESTDELHI REGION

QUESTIONNAIRE
NAME:________________________________________________

GENDER: Male

Female

OCCUPATION: Businessmen Any other

Professional

Service

Student

AGE: 15-20 21-35

36-45 46-55

55 & above

2) Which brand will you prefer of carbonated beverages? PEPSI

COKE

OTHERS

3) How often you take carbonated beverages?

ONCE A DAY

ONCE A WEEK

FORTNIGHTLY

MONTHLY

4) Which drink you prefer the most? (Rank n order of preference with 1 being the most preferred)

COKE

PEPSI

ANY OTHER, please specify ____________________

5) Have you seen the advertisement of carbonated beverages?

YES

NO

6) TheAdvertisements of carbonated beverages affects your choice of drink?

STRONGLYAGREE STRONGLY DISAGREE

AGREE NEITHER

DISAGREE

7) Rate the following attributes in terms of their degree of influence on your purchase decision (5 being the most influential and 1 being least influential) QUALITY Price Design of the bottle Advertisement Trendy Slogan Brand name Reputation Circle of friend Lifestyle Boring trendy 1 2 3 4 5

8) State the advertisement on the basis of which you have made your choice in the question no. (7) _________________________________________________________________ 9) Which brand do you prefer most? COKE CO PEPSI CO

OTHER _______________

10) Which promotional offers attract you the most?

FREE GIFTS

PRICE OFFERS

ANY OTHER, specify_________

11) Which mode of advertisement influences your purchase? (Rank according to your opinion; very much=5, much=4, neither=3, little=2, very little=1)
1 T.V HOARDINGS NEWSPAPER MAGAZINES BROCHURES INTERNET 2 3 4 5

12) If your preferred brand is not available for repeat purchases then what will you do?

POSTPONE YOUR PURCHASE

SWITCH OVER TO OTHER BRAND

13) If another brand of same product appears in the market, will you prefer to stop buying this brand and buy the new brand? NO I MAY CONSIDER YES CANT SAY

14)Which brand most effective in advertisement? COKE CO PEPSI CO

15) Which brand has creative and appealing advertisement? COKE CO PEPSI CO

16) Which brand having the innovation and exciting offers? COKE CO PEPSI CO