University of mumbai

Project report
On
pepsi company
submitted by
nikita.s.nagdev
roll no.26
Under the guidance
Of
Prof. Sunil lalchandani
Smt. Chandibai himatmal mansukhani college
Ulhasnagar -421003

M.compartII(sem.III)
Year201415
Smt. Chandibai himatmal mansukhani college
Ulhasnagar -421003
A
Project report
On
pepsi company
Submitted by
Nikita.s.nagdev

Certificate
Thisistocertifythatms.Nikita.s.nagdevof
M.compartii(sem.i)has
successfullycompletedtheprojecttitled

pepsi company
Undermyguidancefortheacademicyear201415.The
Informationsubmittedistrueandoriginalaspermyknowledge.

_________________________________________________
(prof.Sunillalchandani.)(prof.)
projectguide(internal)

projectguide(external)

_______________________________________________
prof.Gopishamnani(Mrs.)PadmaDeshmukh
coursecoordinator(m.Com)principal

Declaration

I, nikita.s.nagdev, student of smt. Chandibai himatmal mansukhani college, have completed project on
the topic pepsi

company

I hereby declare that this project submitted to university of mumbai, is true and original to the
best of my knowledge.

Date:

place:
(Nikita.S.Nagdev)

Acknowledgement
It is indeed a matter of great pleasure and privilege to work on the project titled pepsi
company. I would like to express special thanks to and for providing me an excellent
opportunity to complete my project at smt. Chandibai himatmal mansukhani college.
I would like to express my indebtedness to prof. Sunil lalchandani. My project
guide, who has played a pivotal role in the success of this project and has always been a
source of inspiration to me.

________________________
(nikita.s.nagdev)

Executive summary
In this project i have first explained about pepsi company is all about, how it can be
implemented in an organization i.e. What are the requirements in order to set up pepsi
product in a company. Further it also explains in details the various modules of pepsi
company and how are beneficial.
It also shows how this pepsi product affects the company profit and how it can save
employees future in the company.

This project, is about how pepsi company face challenges in the market with other soft
drinks.

Objective of study

To know the sales promotion tools used by pepsico company.

To know about the sales promotion impacts on sale of the product of pepsi co company in ctc.
To find out the best promotional tool preferred by the retailers.
To know the peak periods of sales promotion activities.
To analyze the strength & weakness of pepsico.
To determine the standard of sales & services & public relation.

Methodology:- the methodology has been under for the collection of date regarding
pepsi company:- where as secondary research includes websites, imaginers,
Journals, etc.

10

Introduction
pepsi-cola is a carbonated beverage that is produced and manufactured by
pepsico. It is sold in stores, restaurants 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. There
have been many pepsi variants produced over the years since
1903, including diet pepsi, crystal pepsi, pepsi twist, pepsi max,
pepsi samba, pepsi blue, pepsi gold, pepsi holiday spice, pepsi
jazz, pepsi x (available in finland and brazil), pepsi next (available
in japan and south korea), pepsi raw, pepsi retro in mexico, pepsi
one, pepsi ice cucumber and pepsi white in japan.
In october 2008, pepsi announced they would be redesigning their logo
and re-branding many of their products by early 2009. In 2009, pepsi, diet
pepsi and pepsi max will use all lower-case fonts for name brands,
mountain dew will be renamed "mtn dew", and diet pepsi max
will be re-branded as pepsi max. By the end of 2008, the
brand's blue and red globe trademark will become a series

of

"smiles," with the central white band arcing at different angles

depending on the product. The new imagery is slated to be used when 2008 is over. In the
case of pepsi, the logo will have the medium-sized "smile", while the new lower-case font
used on pepsi's products are to be reminiscent of the font used in diet pepsi's logo from 19641988.

Origins
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Pepsi was first made in new bern, north carolina, in the united states in the early 1890s by
pharmacist caleb bradham. In 1898, "brad's drink" was changed to "pepsi-cola" and later
trademarked on june 16, 1903.there are several theories on the origin of the word "pepsi".
The only two discussed within the current pepsico website are the following:
1. Jonathan vantman bought the name "pep kola" from a local competitor and changed it to
pepsi-cola.
2. The word pepsi comes from the greek word "pepse" (), which is a medical term,
describing digestion and the food dissolving process within one's stomach. Dyspepsia is also
a medical term describes a problem with one's stomach to dissolve foods properly.
Another theory regarding the name's origins is that caleb bradham and his customers simply
thought the name sounded good and reflected the fact that the drink had some kind of "pep"
in it because it was a carbonated drink.
And another theory is that the word pepsi was chosen because it reflected phonetically the
sound of a can being opened, the sound "pop" "schi", was condensed and simplified in the
name "pepsi".
In 1903, bradham moved the bottling of pepsi-cola from his drugstore into a rented
warehouse. That year, bradham sold 7,968 gallons of syrup. The next year, pepsi was sold in
six-ounce bottles, and sales increased to 19,848 gallons. In 1924, pepsi received its first logo
redesign since the original design of 1905. In 1926, the logo was changed again. In 1929,
automobile race pioneer barney oldfield endorsed pepsi-cola in newspaper ads as "a bully
drink...refreshing, invigorating, a fine bracer before a race".
In 1931, the pepsi-cola company went bankrupt during the great depression- in large part due
to financial losses incurred by speculating on wildly fluctuating sugar prices as a result of
world war i. Assets were sold and roy c. Megargel bought the pepsi trademark. Eight years
later, the company went bankrupt again. Pepsi's assets were then purchased by charles guth,
the president of loft inc. Loft was a candy manufacturer with retail stores that contained soda
fountains. He sought to replace coca-cola at his stores' fountains after coke refused to give
him a discount on syrup. Guth then had loft's chemists reformulate the pepsi-cola syrup
formula.

12

Rise in popularity
During the great depression, pepsi gained popularity following the introduction in 1936 of a
12-ounce bottle. Initially priced at 10 cents, sales were slow, but when the price was slashed
to five cents, sales increased substantially. With a radio advertising campaign featuring the
jingle "pepsi cola hits the spot / twelve full ounces, that's a lot / twice as much for a nickel,
too / pepsi-cola is the drink for you," pepsi encouraged price-watching consumers to switch,
obliquely referring to the coca-cola standard of six ounces a bottle for the price of five cents
(a nickel), instead of the 12 ounces pepsi sold at the same price. Coming at a time of
economic crisis, the campaign succeeded in boosting pepsi's status. In 1936 alone
500,000,000 bottles of pepsi were consumed. From 1936 to 1938, pepsi-cola's profits
doubled.
Pepsi's success under guth came while the loft candy business was faltering. Since he had
initially used loft's finances and facilities to establish the new pepsi success, the nearbankrupt loft company sued guth for possession of the pepsi-cola company. A long legal
battle, guth v. Loft, then ensued, with the case reaching the delaware supreme court and
ultimately ending in a loss for guth.

Niche marketing
Walter mack was named the new president of pepsi-cola and guided the company through the
1940s. Mack, who supported progressive causes, noticed that the company's strategy of using
advertising for a general audience either ignored african americans or used ethnic stereotypes
in portraying blacks. He realized african americans were an untapped niche market and that
pepsi stood to gain market share by targeting its advertising directly towards them. To this
end, he hired hennan smith, an advertising executive "from the negro newspaper field" to
lead an all-black sales team, which had to be cut due to the onset of world war ii. In 1947,
mack resumed his efforts, hiring edward f. Boyd to lead a twelve-man team. They came up
with advertising portraying black americans in a positive light, such as one with a smiling
mother holding a six pack of pepsi while her son (a young ron brown, who grew up to be
secretary of commerce) reaches up for one. Another ad campaign, titled "leaders in their
fields", profiled twenty prominent african americans such as nobel peace prize winner ralph
bunche and photographer gordon parks.
13

Boyd also led a sales team composed entirely of blacks around

the country to promote pepsi. Racial segregation and jim crow
laws were still in place throughout much of the u.s., so boyd's
team faced a great deal of discrimination as a result, from
insults by pepsi co-workers to threats by ku klux klan. On the
other hand, they were able to use racism as a selling point,
attacking coke's reluctance to hire blacks and support by the
chairman of coke to segregationist governor of georgia herman
talmadge. As a result, pepsi's market share as compared to
coke's shot up dramatically. After the sales team visited chicago, pepsi's share in the city
overtook that of coke for the first time.
This focus on the black market caused some consternation within the company and among its
affiliates. They did not want to seem focused on black customers for fear white customers
would be pushed away. In a meeting at the waldorf-astoria hotel, mack tried to assuage the
500 bottlers in attendance by pandering to them, saying, "we don't want it to become known
as a nigger drink." after mack left the company in 1950, support for the black sales team
faded and it was cut.
Marketing
In 1975, pepsi introduced the pepsi challenge marketing campaign where pepsico set up a
blind tasting between pepsi-cola and rival coca-cola. During these blind taste tests the
majority of participants picked pepsi as the better tasting of the two soft drinks. Pepsico took
great advantage of the campaign with television commercials reporting the test results to the
public.
in 1996, pepsico launched the highly successful pepsi stuff marketing strategy. By 2002, the
strategy was cited by promo magazine as one of 16 "ageless wonders" that "helped redefine
promotion marketing."
in 2007, pepsico redesigned their cans for the fourteenth time, and for the first time, included
more than thirty different backgrounds on each can, introducing a new background every
three weeks .one of their background designs includes a string of repetitive numbers 73774.
This is a numerical expression of the word "pepsi."

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15

Celebrity endorsers:
Like coca-cola, pepsi and its associated beverages have had various celebrity endorsers and
continue to use them.

List of pepsi spokespersons:

pepsi, the carbonated beverage, has had many advertising spokespersons over the years.
Pepsico's other drink brands, including mountain dew and gatorade, also have a variety of
famous spokespersons.
History:
Celebrities have been paid to advertise for pepsi products.

United states
Nascar driver jeff gordon who runs a pepsi paint scheme at talladega superspeedway and
auto club speedway.
Joan crawford was married to pepsico president alfred steele, and was advertising executive
and board of directors member for several years.
During the 1960s, joanie sommers sang two popular commercial songs ("it's pepsi, for those
who think young" and "now you see it, now you don't, oh, diet pepsi") for pepsi-cola that
were run in commercials and for which she came to be often referred to as "the pepsi girl".
During the 1989 grammy awards telecast, pepsi and puerto rican singer chayanne was
featured in the first advertising spot in spanish language to be broadcast on national television
without dubbing or subtitles.
In the early 1990s, ray charles was the star of a diet pepsi campaign called "you got the right
one, baby," which was also known as "uh-huh."
In 1999, britney spears became a spokesperson for pepsi. Spears' contract concluded with an
advertisement with p!nk, beyonc and enrique iglesias. The ad was made featuring the cover
of the song "we will rock you" by "queen".

16

In 2005, christina aguilera was signed to promote the popular drink (she was previously
promoting coca-cola in 2000). The campaign featuring aguilera was released in 2006, but not
in the united states. Some commercials featured singer elissa, and some with aguilera by
herself. Pepsico said in a recent interview that christina aguilera has that 'dare for more'
approach. Aretha franklin was also a spokesperson in 1998. And also in 1999 janet jackson
signed on to the original "ask for more" campaign which featured a song of the same name
written and sung by jackson.
In 2008, pepsico launched the "cool tones" campaign. It involved mariah carey, mary j blige
and the all american rejects writing and performing ringtones that can be obtained by
purchasing a pepsi bottle. Carey also recorded a commercial for the campaign in which she
performs one of her original ringtones.

Europe and the united kingdom

For the 1988 and 1989 seasons, pepsi was the title sponsor of suzuki's effort in motorcycle
road racing's premier class, grand prix 500cc. The pepsi livery was a new addition to grand
prix motorcycling, and a change from tobacco sponsors.
During 1988-9, suzuki also produced a number of road going replicas of the gp bikes,
emblazoned with the same pepsi signage as the works bikes. Due to the livery's association
with one of suzuki's riders, the texan, kevin schwantz, riders today are still producing their
own replicas as tribute.
asia

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As for asia, celebrity and singers leslie cheung,

jay chou, aaron kwok, jolin tsai, rain, louis
koo, nicholas tse, f4, faye wong, and kelly
chan have appeared in several different
advertisements. In india, pepsi first used aamir
khan, model turned actress mahima chaudhary
and model and ex-miss world aishwariya rai to
promote its product.
Later it used amitabh bachchan, shahrukh
khan, kajol,rani mukherjee, saif ali khan,
fardeen khan, akshay kumar, shahid kapur (before he entered the movie world), preity
zinta,john abraham, priyanka chopra, and kareena kapoor as well as the national cricket team.

Troubled endorsers
Pepsi has had a notorious association with spokespersons, primarily popstars, over the last 25
years. The first international popstar to become a spokesperson for the drink was michael
jackson, who along with his brothers (the jackson 5) advertised pepsi for "the new
generation" in an advertisement featuring a reworking of his song "billie jean". However,
when filming a second advertisement in 1984, a pyrotechnics stunt went wrong and badly
burnt jackson.
In 1987, david bowie and tina turner joined forces to advertise the soft drink, in an
advertisement featuring a reworking of bowie's hit "modern love." the company also agreed
to sponsor bowie's 1987 glass spider world tour. Bowie was accused of sexual assault shortly
afterwards, and the company dropped the advertisements immediately. A year later pepsi's
attempts to make madonna a new pepsi spokesperson ended with the infamous "like a prayer"
incident when madonna's video brought charges of anti-catholicism to the company.
According to allhiphop.com, in 2005, a rumor spread that the newest spokesperson for pepsi,
kanye west, was dropped after a comment made against president george w. Bush. Nicole
bradley, public relations manager of pepsi, clarified that the company's relationship with west
had not changed and their marketing will continue as planned

18

19

Slogans
A large advertisement made to resemble a pepsi cup at nickelodeon universe in the mall of
america.

1939: "twice as much for a nickel"

1950: "more bounce to the ounce"

1950: "any weather is pepsi weather"

1957: "the light refreshment"

1958: "be sociable, have a pepsi"

1961: "now it's pepsi for those who think young"

1963: "come alive, you're in the pepsi generation".

1967: "(taste that beats the others cold) pepsi pours it on".

1969: "you've got a lot to live, and pepsi's got a lot to give"

1975: "have a pepsi day"

1977: "join the pepsi people (feeling free)"

1980: "catch that pepsi spirit" david lucas composer

1981: "pepsi's got your taste for life"

1983: "pepsi now! Take the challenge!"

1984: "pepsi. The choice of a new generation" (commercial with michael jackson,
featuring pepsi version of billie jean)

1986: "we've got the taste" (commercial with tina turner)

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1990: "you got the right one baby uh huh" ( sung by ray charles for diet pepsi )

1991: "gotta have it"/"chill out"

1992: "be young er, have fun, drink pepsi"

1993: "right now" van halen song for the crystal pepsi ad

1994: "double dutch bus" pepsi song sung by brad bentz.

1995: "nothing else is a pepsi"

1996: "pepsi: there's nothing official about it" (during the wills world cup(cricket)
held in india/pakistan/sri lanka)

1997: "generatio next"." with the spice girls "

1998: "yeh dil mange more"(in hindi/urdu meaning "this heart wants more")
(india/pakistan)(100th anniversary commercial)

1999: "for those who think young"/"the joy of pepsi-cola" (commercial with britney
spears/commercial with mary j. Blige)

2000: "aazadi dil ki" (in hindi meaning "freedom of the heart")(india)

2003: "it's the cola"/"dare for more" (pepsi commercial)

2003: "yeh pyas hai badi"(in hindi meaning "this thirst is too much")(india)

2005: "wild thing"/"ask for more" (with jennifer lopez & beyonc knowles)

2006: "why you doggin' me"/"taste the one that's forever young" commercial
featuring mary j. Blige

2007: "more happy"/"taste the once that's forever young" (michael alexander)

2008: "yeh hai youngistaan meri jaan!" (india)

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2008: "pepsi stuff" super bowl commercial (justin timberlake)

2008: "epsi is #1" v commercial (luke rosin)

2008: "pepsify karo gai!" commercial ( in urdu meaning "wanna pepsify!") (pakistan)
(featuring. Adnan sami and annie (pakistani singer))

2008: "something for everyone." (current slogan)

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23

Pepsiman
Pepsiman is an official pepsi mascot from pepsi's japanese corporate branch. The design of
the pepsiman character is attributed to canadian comic book artist travis charest, created
sometime around the mid 1990s. Pepsiman took on three different outfits, each one
representing the current style of the pepsi can in distribution. Twelve commercials were
created featuring the pepsiman. His role in the advertisements is to appear with pepsi to
thirsty people or people craving soda. Pepsiman happens to appear at just the right time with
the product. After delivering the beverage, sometimes pepsiman would encounter a difficult
and action oriented situation which would result in injury.
Pepsiman was featured as a japanese exclusive transformers toy "pepsi convoy," which was
based on g1 optimus prime. In 1996, sega-am2 released the sega saturn version of their
arcade fighting game fighting vipers. In this game pepsiman was included as a special
character, with his specialty listed as being the ability to "quench one's thirst". He does not
appear in any other version or sequel. In 1999, kid developed a video game for the
playstation entitled pepsiman. As pepsiman, the player runs, skateboards, rolls, and stumbles
through various areas, avoiding dangers and collecting cans of pepsi all while trying to reach
a thirsty person as in the commercials.

Competition

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Pepsi and coca-cola had/have different brands of soda and other drinks competing with each
other:
Type
Dark cola

Pepsi version

Coke version

pepsi-cola

coca-cola

diet pepsi /

diet coke /

diet / low

pepsi light

coca-cola light

calorie

pepsi one

tab

pepsi max

coca-cola zero

low carb

Clear cola

pepsi edge
(discontinued)
crystal pepsi

(discontinued
in usa)
tab clear

(discontinued) (discontinued)

lemon lime

sierra mist

soda

7 up [1]

Cherry soda

coca-cola c2

wild cherry
pepsi

sprite

cherry coke

tropicana
twister
orange soda

slice

fanta

mirinda

minute maid

sunkist
kas
orange juice

tropicana

minute maid

iced tea

lipton brisk

nestea
(manufactured
by nestle in the
usa and by
beverage
partners
worldwide
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(bpw), a joint
venture
between nestle
and coca-cola
elsewhere)
dasani

water

bonaqua
aquafina

kinley
ciel
eva

root beer
sports drink
Citrus soda

mug root beer barq's

gatorade
propel

powerade

mountain dew mello yello

mountain dew vault
mdx

fresca

kas

surge
(discontinued)
rondo
(discontinued)

Vanillaflavored

pepsi vanilla

vanilla coke
coca-cola with

Lime-flavored pepsi lime

lime
diet coke with
lime
coca-cola with

Lemonflavored

lemon
pepsi twist

(discontinued)

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Rivalry with coca-cola

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 (which is believed to have
more lemon oil, less orange oil, and uses vanillin rather than vanilla) to coke. The sales of
pepsi started to climb, and pepsi kicked off the "challenge" across the nation. This became
known as the "cola wars"
In 1985, the cocacola company,
amid much
publicity, changed
its formula. The
theory has been
advanced that new
coke, as the
reformulated drink
came to be known,
was invented
specifically in
response to the
pepsi challenge.
However, a consumer backlash led to coca-cola quickly introducing a modified version of the
original formula (removing the expensive haitian lime oil and changing the sweetener to corn
syrup) as coke "classic".
In the u.s., pepsi's total market share was about 31.7 percent in 2004, while coke's was about
43.1 percent.

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Overall, coca-cola continues to outsell pepsi in almost all areas of the world. Saudi arabia,
pakistan (pepsi has been a dominant sponsor of the pakistan cricket team since the 1990s),
dominican republic, the canadian provinces of quebec and prince edward island and the u.s.
states of michigan and south carolina are the exceptions..
Pepsi had long been the drink of canadian francophones and it continues to hold its
dominance by relying on local qubcois celebrities (especially claude meunier, of la petite
vie fame) to sell its product. Pepsico use the slogan "here, it's pepsi" (ici, c'est pepsi) to
answer to coca-cola publicity "everyone on earth drank coca-cola" (partout dans le monde,
c'est coke).
By most accounts, coca-cola was india's leading soft drink until 1977 when it left india after a
new government ordered the coca-cola company to turn over its secret formula for coke and
dilute its stake in its indian unit as required by the foreign exchange regulation act (fera). In
1988, pepsico gained entry to india by creating a joint venture with the punjab 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. In 1993, the coca-cola
company returned in pursuance of india's liberalization policy. In 2005, the coca-cola
company and pepsico together held 95% market share of soft-drink sales in india. Coca-cola
india's market share was 52.5%.
In russia, pepsi initially had a larger market share than coke but it was undercut once the cold
war ended. In 1972, pepsico company struck a barter agreement with the then government of
the soviet union, in which pepsico was granted exportation and western marketing rights to
stolichnaya vodka in exchange for importation and soviet marketing of pepsi-cola. This
exchange led to pepsi-cola being the first foreign product sanctioned for sale in the u.s.s.r..
Reminiscent of the way that coca-cola became a cultural icon and its global spread spawned
words like "coca colonization", pepsi-cola and its relation to the soviet system turned it into
an icon. In the early 1990s, the term "pepsi-stroika" began appearing as a pun on
"perestroika", the reform policy of the soviet union under mikhail gorbachev. Critics viewed
the policy as a lot of fizz without substance and as an attempt to usher in western products in
deals there with the old elites. Pepsi, as one of the first american products in the soviet union,

28

became a symbol of that relationship and the soviet policy. This was reflected in russian
author victor pelevin's book "generation p".
In 1989, billy joel mentions 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 their advertising campaigns. Coke used paula abdul,while pepsi used michael
jackson. They then continued to try to get other musicians to advertise their beverages. Whilst
filming the pepsi advert michael jackson managed to burn his hair.
In 1992, following the soviet collapse, coca-cola was introduced to the russian market. As it
came to be associated with the new system, and pepsi to the old, coca-cola rapidly captured a
significant market share that might otherwise have required years to achieve. By july 2005,
coca-cola enjoyed a market share of 19.4 percent, followed by pepsi with 13 percent.
Rarely, though, has the coke-pepsi rivalry gone so far as in thailand, where it has now led to
two deaths (source: time magazine).

Cola wars
The cola wars (a play on cold war) was a campaign of mutually-targeted television
advertisements and marketing campaigns in the 1980s and 1990s between soft drink
manufacturers the coca-cola company and pepsico.
Marketing campaigns:
Coca-cola and pepsi focused particularly on rock stars; notable soft drink promoters included
michael jackson and ray charles (for pepsi) and paula abdul, elton john (for diet coke).
The pepsi stuff promotion became the subject of a lawsuit. In one of the many commercials,
pepsi showed a young man in the cockpit of a harrier jump jet. Below ran the caption "harrier
jet: 7 million pepsi points." there was a mechanism for buying additional pepsi points to
complete a pepsi stuff order. John leonard, of seattle, washington, sent in a pepsi stuff request
with the maximum amount of points and a check for over $700,000us to make up for the
extra points he needed. Pepsi did not accept the request and leonard filed suit. The judgment
was that a reasonable person viewing the commercial would realize that pepsi was not, in
fact, offering a harrier jet. In response to the suit, pepsi added the words "just kidding" under

29

the portion of the commercial featuring the jet as well as changing the "price" to 700 million
pepsi points (see leonard v. Pepsico, inc.).
In 1985, coca-cola and pepsi were launched into space aboard the space shuttle on sts-51-f.
The companies had designed special cans for use in zero g conditions. The experiment was
classified a failure by the shuttle crew, primarily due to the lack of refrigeration and gravity.

30

Bans in india
Pepsi arrived on the market in india in 1988. In 2003 and again in 2006, the centre for science
and environment (cse), a non-governmental organization in new delhi, claimed that soda
drinks produced by manufacturers in india, including both pepsi and coca-cola, had
dangerously 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 soft drinks, were banned in 2006[ following partial bans on the
drinks in schools, colleges and hospitals in five other indian states.[ on september 22, 2006,
the high court in kerala overturned the kerala ban ruling that only the central government can
ban food products.
Criticisms
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 soft drinks 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,
mirinda, fanta, thums up, limca, and sprite. Cse found that the indian-produced pepsi's soft
drink products had 36 times the level of pesticide residues permitted under european union
31

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 soft drinks. Coke and pepsico opposed the move, arguing that lab tests aren't
reliable enough to detect minute traces of pesticides in complex drinks. On december 7, 2004,
india's supreme court ruled that both pepsico and competitor the coca-cola company must
label all cans and bottles of the respective soft drinks with a consumer warning after tests
showed unacceptable levels of residual pesticides.
Both companies continue to maintain that their products meet all international safety
standards without yet implementing the supreme court ruling.[citation needed] as of 2005, the cocacola company and pepsico together hold 95% market share of soft-drink sales in india.
Pepsico has also been alleged to practice "water piracy" due to its role in exploitation of
ground water resources resulting in scarcity of drinking water for the natives of puthussery
panchayat in the palakkad district in kerala, india. Local residents 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 soft
drinks, 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.
Pesticide residuals controversy
6 august 2003 the delhi based center for science and environment (cse) reveals that it has
conducted a study on samples of 12 major soft drink brands sold in the country for the

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residual levels of pesticides and found the levels to be far too high when compared with the
same in the samples from developed countries.
7 august 2003 pepsi india comes up with a press release stating that all pepsi products
conform to the most stringent of quality standards world over. The regular testing and
stringency norms at pepsi, it seems, require the most sophisticated and specialized tests and
equipment to be able to detect the pesticide residue at 0.1 parts per billion levels. Moreover,
cse is not a government accredited body certified for the capability of carrying any such tests,
says the press release. The press release also cites the name of an independent world-class
laboratory vimta, which was accredited by the national accreditation board for testing &
calibration for laboratories (nabl), as having tested the pepsi products against several
stringent norms. Mutual mudslinging begins as the company openly questions the credibility
of the tests done by cse and its capability in conducting such tests.
22 august 2003 union health minister sushma swaraj issues statement that only three
samples out of the 12 in the contention meet the eec norms; while the other samples have
residue levels above the acceptable limits, they are only 2 to 6 times more than the acceptable
level unlike 30 to 35 times as claimed by the cse; this has been the result of tests conducted
by two laboratories, the mysore-based central food technological research institute (cftri) and
the kolkata-based central food laboratory (cfl).
23 august 2003 the government appoints a 15-member all party joint parliamentary
committee under the leadership of sharad pawar to delve into the issue and submit a report on
the same in the next session. The committee is also expected to suggest the safety standards
for pesticide residue levels in soft drinks, fruit juices and other beverages that have water as
the main ingredient.
february 2004 the jpc submits its report to the parliament, saying that the tests conducted
by cse are accurate and india needs to come up with a set of standards for carbonated
beverages. Central committee on food standards (ccfs) endorses the jpc report and says it will
set final standards. Bureau of indian standards (bis) also starts revising its standards.
june 2004 pesticide residue sub-committee of ccfs meets and decides to do year-long
monitoring.

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 november 2004 ccfs meets and decides to set up national expert committee to study the
matter.
8 august 2006 four states gujarat, madhya pradesh, rajasthan and chattisgarh ban the
sale of coke and pepsi in the educational and governmental institutions. The ban is a
consequence of cses report stating that even now, the pesticide levels in these drinks are
more than 24 times above the limits set by bis. While the top management of both the
companies insists that their products adhere to the most stringent norms and are safe for
consumption, cse toughens its stand that the cola companies are misleading the general public
and have a long way to go before actually meeting those safety norms.
10 august 2006 kerala announces a complete ban on production and sale of carbonated
soft drinks, including coca-cola and pepsi, while karnataka announces a ban on sale of colas
in schools and state-run hospitals.
14 august 2006 pepsico india chairman rajeev bakshi reiterates that the companys
products in india are as safe as anywhere else in the world. He expresses the companys
willingness to support the government in setting up criteria for pesticide residues in soft
drinks, but insists that a protocol for testing has to be developed, which is not to stall
notification of bis norms, but a measure to ensure that the testing procedure is validated by
series of labs in india and the world over.
22 august 2006 the expert committee constituted by union health minister anubumani
ramadoss quashes the cses report on pesticide residue levels stating that the experiment
methodology has lot of flaws in it right from sampling to reporting the residue levels.
22 september 2006 the kerala high court quashes the governments ban on production and
sale of the colas in the state. The state government is exploring other alternatives.
10 january 2007 pepsi india holding chairman rajeev bakshi exits indian operations.
16 february 2007 the apex court accepts the appeal of kerala state government against the
high court judgment quashing the ban on production and sale of coca-cola and pepsi in the
state.

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35

Matter of contention
The presence of pesticide residues in the samples of soft drinks manufactured and distributed
in india by the pepsi india holding company are at levels greater than those present in the
samples of similar products in us and europe. Each of the three major parties involved, i.e.,
the cola companies, cse and the government, differ on what is acceptable standard for the
pesticide residue levels in the soft drinks. While the cola companies contend that their
products in india are as safe as they are elsewhere, cse is particular about the fact that the
pesticides present in the soft drinks are carcinogenic in nature and the cola companies are
apathetic about this fact. The government neither cracked the whip on the cola companies,
nor did it play dumb spectator. The government says that while it is true that the residue
levels of pesticides in soft drinks are above the eec norms, they are not as high as those
values reported by cse. The matter has led to contemplation of setting criteria for the standard
levels of pesticide residues in non-alcoholic beverages in india. The issue is alive for the past
three years and no specific measures have come out till now in this regard.
Soft drinks market in india
India is one of the top five markets in terms of growth of the soft drinks market. The per
capita consumption of soft drinks in the country is estimated to be around 6 bottles per annum
in the year 2003. It is very low compared to the corresponding figures in us (600+ bottles per
annum). But being one of the fastest growing markets and by the sheer volumes, india is a
promising market for soft drinks. The major players in soft drinks market in india are pepsico
and coca-cola co. Like elsewhere in the world. Coca-cola acquired a number of local brands
like limca, gold spot and thums up when it entered indian market second time. Pepsi cos soft
drink portfolio consists of miranda and 7up along with pepsi. The market share of each of the
company is more or less the same, though there is a conflict in the estimates quoted by
different sources
The major ingredient in a soft drink is water. It constitutes close to 90% of the soft drink
content. Added to this, the drink also contains sweeteners, carbon dioxide, citric acid/malic
acid, colors, preservatives, anti oxidants and other emulsifying agents, etc.
Social implications
The first time when cse conducted tests on samples of 12 soft drinks, it found out that the
pesticide residue levels in these samples are as high as 30 to 35 times that of the levels
acceptable by eec norms.
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Indian soft drinks market is not under any regulation. Prevention of food adulteration act
1954 does not include soft drinks. None of the bis standards that existed before august 2003
had any guidelines or set criteria for the residue levels of pesticides in the soft drinks. But
different international agencies have set standards for the residue levels of pesticides. The
european economic community (eec) sets the maximum admissible concentration of
individual pesticides and related products in drinking water at 0.1 parts per billion to ensure
that the toxicity is not dangerous to human beings. For a few pesticides like aldrin, dieldin
and heptachlor epoxide the admissible limit is even more stringent, i.e., 0.03 parts per billion.
The samples tested were found to contain four pesticides more often than others lindane,
ddt and its metabolites, malathion and chlorpyrifos. Each of these can have detrimental
effects on the general well-being of human beings. Lindane accumulates in the fat tissues and
can cause damage to liver, kidney and is suspected to be carcinogenic in nature. Ddt and its
metabolites are found in almost 80% of the samples tested. Ddt and its metabolites have
negative impact on the potency levels of human beings and can increase the incidence risk of
breast cancer among the female population. Chlorpyrifos is suspected to effect the
functioning of the brain. It also affects the immunological system of the body. Malathion is
also carcinogenic in nature.
Some of those who sympathize with pepsico in this whole pesticide saga say that the per
capita consumption of soft drinks in india is too small for any of these pesticide residues in
the soft drinks to have any appreciable effect if at all on the consumers. Though this may be
true to certain extent, it has been scientifically proven that the excretion of some of the
aforementioned pesticides from the human body is extremely slow even after the intake
ceases. Moreover, all the aforementioned pesticides are proven to be highly carcinogenic in
nature.
The main reason cited for the highly unacceptable levels of pesticide residue levels in the soft
drinks is mainly because of the negligence on the part of the companies to process the ground
water before using it in the manufacturing process. The ground water in general, is
contaminated because of unregulated and indiscriminate use of pesticides in india.
The public response to cses findings has been very sharp as reflected by steep drop in sales
of the soft drinks immediately following the release of cses findings. [14] though there was no
hue and cry all over, the general public seems to have taken strong notice of the fact that all is
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not well with the soft drinks produced and marketed by the cola companies. The blatant
denials by the head honchos did not allay the fears of the general public.
Economic implications
Despite of the initial knee-jerk reaction, the general public by and large has not been paying
much attention to the pepsi pesticides issue. The ban imposed by some of the states will hit
the profitability of the companys operations. The thing really worth mentioning is the
reluctance of both the cola companies in accepting the fact that they have been following
different safety standards at different places. All through the issue, the chairman of pepsi
india holding rajeev bakshi was adamant that pepsis products in india are as safe as
anywhere else. While it may be true that extremely low levels of per capita consumption
render any fears of toxic effects of pesticides unreasonable, the reluctance of the cola
companies in accepting the fact that the ground water used in the manufacturing process is
not sufficiently treated, is an ominous sign to the consumer.
The cost involved with such processing and subsequent testing of the water samples for
residue levels might not be exorbitant in comparison to the amount of damage from not
taking any such initiative might cause in the long run. In the age of triple bottomline, the
overall behavior of pepsi india in the pesticides issue leaves a lot desired.

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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The original pepsi-cola recipe was available from documents filed with the court at the time
that the pepsi-cola company went bankrupt in 1929. The original formula contained neither
cola nor caffeine.
Ingredients as seen on products:
carbonated water, glucose-fructose and/or sugar, caramel colour, phosphoric acid, caffeine,
citric acid, flavour.

Amount per 100ml

Energy

100.5kj

Fat

0g

Sodium

0.98 mg

Carbohydrates

11.74 g

Sugar

11.04 g

Protein

0g

Caffeine

10 mg

More about pepsi co.

Pepsico, incorporated (short for pepsi company) (nyse: pep) is a large conglomerate with
interests in manufacturing, marketing and selling a wide variety of carbonated and noncarbonated beverages, as well as salty, sweet and grain-based snacks, and other foods.
Besides the pepsi-cola brands, the company owns the brands quaker oats, gatorade, frito-lay,
sobe, naked, and tropicana, mountain dew, mirinda and 7up(outside the usa).
indra nooyi, chief executive of pepsico since 2006, has focused on maintaining the company's
leadership in the snack food industry by being on the forefront of marketing healthier snacks
and striving for a net-zero impact on the environment.[1] this focus on healthier foods and
lifestyles is part of nooyi's "performance with purpose" philosophy.

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Today, beverage distribution and bottling is undertaken primarily by associated companies

such as the pepsi bottling group (nyse: pbg) and pepsi americas(nyse: pas). Pepsico is a sic
2080 (beverage) company.
History
Headquartered in purchase, new york, with research and development headquarters in
valhalla, ny, the pepsi cola company began in 1898 by a pharmacist and industrialist caleb
bradham, but it only became known as pepsico when it merged with frito lay in 1965. Until
1997, it also owned kfc, pizza hut, and taco bell, but these fast-food restaurants were spun off
into tricon global restaurants, now yum! Brands, inc. Pepsico purchased tropicana in 1998,
and quaker oats in 2001. In december 2005, pepsico surpassed coca-cola company in market
value for the first time in 112 years since both companies began to compete.
Corporate governance
Current members of the board of directors of pepsico are indra nooyi c.e.o., robert e. Allen,
dina dublon, victor dzau, ray hunt, alberto ibargen, arthur martinez, steven reinemund,
sharon rockefeller, james schiro, franklin thomas, cynthia trudell, and river king.
On october 1, 2006, former chief financial officer and president indra nooyi replaced steve
reinemund as chief executive officer. Nooyi remains the corporation's president, and became
chairman of the board in may 2007.mike white is the president of pepsi international division.
Former top executives at pepsico:

steven reinemund

d. Wayne calloway

john sculley

donald m. Kendall

christopher a. Sinclair

Pepsico brands:
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Pepsico owns five different billion-dollar brands. These are pepsi, tropicana, frito-lay, quaker,
and gatorade. The company owns many other brands as well.

pepsi, caffeine-free pepsi, diet pepsi/pepsi light, caffeine-free diet pepsi, caffeine-free
pepsi light, wild cherry pepsi, pepsi lime, pepsi max, pepsi twist and pepsi one.

Other u.s. carbonated soft drinks, including mountain dew, mug root beer, sierra mist,
tropicana twister soda and frawg,

7 up (globally, outside the usa)

Other u.s. beverages, including aquafina (flavor splash, alive, and twist/burst), tava,
dole, gatorade, izze, mountain dew amp, propel fitness water, sobe, quaker milk
chillers, ben & jerry's milkshakes, and tropicana

Beverages marketed outside the u.s.: alvalle, concordia, copella, evervess, fiesta,
frui'vita, fruko, junkanoo, kas, loza, manzana corona, manzanita sol, mirinda, paso
de los toros, radical fruit, san carlos, schwip schwap, shani, teem, triple kola, and
yedigun

frito-lay brands: baken-ets, barcel, bocabits, cheese tris, cheetos, chester's, chizitos,
churrumais, cracker jack, crujitos, doritos, fandangos, fritos, funyuns, gamesa, go
snacks, james' grandma's cookies, hamka's, lay's, miss vickie's, munchies, munchos,
nik naks, ollie's meat snacks, quavers, rold gold, ruffles, rustler's meat sticks, sabritas,
sabritones, sandora, santitas, smartfood, the smith's snackfood company, sonric's,
stacy's pita chips, sun chips, tor-tees, kurkure, tostitos, walkers, and wotsits

quaker oats brands: aunt jemima, cap'n crunch, coqueiro, crisp'ums, cruesli,
frescavena, king vitaman, life, oatso simple,quake, quisp, rice-a-roni, and spudz

In 2007, nooyi spent $1.3 billion on healthier-alternative brands like naked juice, a california
maker of soy drinks and organic juice.
Pepsico has also recently acquired a 50% stake in sabra salads

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Scope of study
Scope of study on pepsico india ltd, the area of the study is ctc. In theduration of study and project
period, i observed that the market response ofpepsico product is in good position, but sales volume is not at par.
The sales promotion policy of our company is affected
Due to competitors marketing strategy.
1. Questioners on sales promotions to know the response of current promotion packs given by
company to retailers in the market.
2. We will come to know that which type of promotional scheme outlets want.
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3. we can easily know how the sale promotion affects the annual salesvolume.
4. We can know the percentage of exclusive and mixed outlets of pepsico india products.
5. We can know the nature of outlets. (i.e. Seasonal vs. Non seasonal).
6. We can know the reaction of the outlets owners towards promotionalschemes.
7. future forecast of sale after getting sale promotion to the outlets.hence we can say
that, a well planed & future oriented sales promotion willgive a good sales volume.

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Biblography:

1) www.google.com
2) www.wikipedea.com
3) www.pepsico.com

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