“A COMPETITIVE COMPARISON OF SOFTDRINK

INDUSTRY IN INDIA”

With reference to Pepsi co. and Cocacola enterprise

incorporation

A Project Report Submitted in Partial Fulfillment of

award of MBA Degree

Project Guide
Prof.Gincy Mathew

Submitted by
Akshaykumar Jadav
Roll No: 034

S.K. PATEL INASTITUTE OF MANAGEMENT &

COMPUTER STUDIES,
Gandhinagar,India
(A constituent of Kadi Sarva Vishwavidyalaya)
APRIL, 2010
 CERTIFICATE

This is to certify that Mr. AKSHAY KUMAR JITENDRABHAI JADAV of

S.K. Patel Institute of Management and Computer Studies, Gandhinagar have
submitted his Grand Project titled “A COMPATITIVE COMPARISON OF
SOFTDIRNK INDUSTRY” in the year 2009-2010 in partial fulfillment of
Kadi Sarva Vishwavidhyalaya requirements for the award of the title of
Master of Business Administration.

Prof.Sonu V.Gupta Prof. Prakash M. Chawla Prof. Gincy Mathew

Director Coordinator Grand project Guide

Date:26-feb-2010
 Acknowledgment

We are indebted to Prof.Sonu Gupta, Director of S.K.P.I.M.C.S., for

providing an opportunity of preparing “A compantitvsoftdrink industry
comparison of softdrink industry.” and allowing us to use the resources of
the institution during this project.

We are extremely thankful to our Project Guide Prof. Gincy Mathew for her
precious guidance regarding the preparation format of the project report. Her
guidance has proved to be very useful and without which the preparation of
this report might not had been possible.

We are also thankful to the other faculty members of the S.K.P.I.M.C.S. for
extending their valuable support for this project.

Finally we would also like to thank our family members, who are always a
source for inspiration for us, for showing their understanding, patience and for
all their possible help for the preparation of this project.

Jadav Akshaykumar
 DECLARATION

I, hereby, declare that the Minor Capstone Project title , “A

COMPANTITIVE COMPANRISON OF SOFTDRINK INDUSTRY” is
original to the best of my knowledge and has not been published elsewhere.
This is for the purpose of partial fulfillment of Kadi Sarva Vishwavidyalaya
requirements for the award of the title of Master of Business Administration,
only.

Student name Signature

AKSHAYKUMAR JADAV
 Index
chapter Topic Page no.
Executive summary
1 Introduction
1.1 Industry
1.2 Company profile of Pepsi
1.3 Company profile of Cocacola
2 Research methodology
2.1 Distributors analysis
2.2 Retailers analysis
2.3 Peorter’s five force analysis
2.4 Swot analysis of Pepsi
2.5 Swot analysis of Cocacola
3 Distribution channel
3.1 Channel of Pepsi
3.2 Channel of Cocacola
3.3 Comparative study of channel
4 Conclusion
Bibliography
Annexure
 Executive summary

Title of the project report is to have comparative study of the 2 companies

Pepsi and Cocacola. In this report I have included the survey of distributors
and retailers, which gives the information about the satisfaction level, their
competitiveness, product delivery conditions, problems of the distributors and
retailers.

This is project report consist of the analysis of the two jaint

companies of FMCG industry Pepsi and Cocacola. Both companies are
having their own distribution channel. They have different market share
because of their exclusive distribution channel .The study of their distribution
channel is a part of this project report which gives information about the
competitiveness of the channel. we can see the mission statement of the both
company which gives us the basis difference of the having their existing
distribution channel, it gives idea about how both channel differ from other. I
have surveyed 50 respondents of which 45 are retailers and 5 are distributors
to know the basic channel of both companies. the survey was under taken in
Bapunagar of Ahmadabad city.the instrument used for the survey is
questionnaire.Questinnaire consist of the fair questions as mentioned in the
report and annexure. Questionnaire includes questions about the delivery
condition, payment of the delivery, facility for the storage of the
goods,provided material for the advertisement and so on. I have also included
the porter’s five force analysis and test analysis for the evaluation of the
industry and Swot analysis for the respected companies.

In conclusion I found that cocacola is having edge on Pepsi in

matter of distribution channel.besides cocacola is having wide range of
product its channel is more competitive in the market and it would be the
main reason for the success for the more selling of the cocacola’s products
than Pepsi. We can say that Pespi’s distribution channel differ from the
cocacola’s in term of the mission statement and vision statement the objective
of having the distribution channel is different.
Chapter-1
INTRODUCTION
 1.1 introduction

The FMCG sector represents consumer goods required for daily or frequent use. The main
segments of this sector are personal care (oral care, hair care, soaps, cosmetics, and
toiletries), household care (fabric wash and household cleaners), branded and packaged
food, beverages (health beverages, soft drinks, staples, cereals, dairy products, chocolates,
bakery products) and tobacco.

The Indian FMCG sector is an important contributor to the country's GDP. It is the fourth
largest sector in the economy and is responsible for 5% of the total factory employment in
India. The industry also creates employment for 3 m people in downstream activities,
much of which is disbursed in small towns and rural India. This industry has witnessed
strong growth in the past decade. This has been due to liberalization, urbanization, increase
in the disposable incomes and altered lifestyle. Furthermore, the boom has also been
fuelled by the reduction in excise duties, de-reservation from the small-scale sector and the
concerted efforts of personal care companies to attract the burgeoning affluent segment in
the middle-class through product and packaging innovations.

Unlike the perception that the FMCG sector is a producer of luxury items targeted at the
elite, in reality, the sector meets the every day needs of the masses. The lower-middle
income group accounts for over 60% of the sector's sales. Rural markets account for 56%
of the total domestic FMCG demand.

Many of the global FMCG majors have been present in the country for many decades. But
in the last ten years, many of the smaller rung Indian FMCG companies have gained in
scale. As a result, the unorganized and regional players have witnessed erosion in market
share.
History of FMCG in India

In India, companies like ITC, HLL, Colgate, Cadbury and Nestle have been a
dominant force in the FMCG sector well supported by relatively less competition and high
entry barriers (import duty was high). These companies were, therefore, able to charge a
premium for their products. In this context, the margins were also on the higher side. With
the gradual opening up of the economy over the last decade, FMCG companies have been
forced to fight for a market share. In the process, margins have been compromised, more
so in the last six years (FMCG sector witnessed decline in demand.

Current Scenario

The growth potential for FMCG companies looks promising over the long-term
horizon, as the per-capita consumption of almost all products in the country is amongst the
lowest in the world. As per the Consumer Survey by KSA-Technopak, of the total
consumption expenditure, almost 40% and 8% was accounted by groceries and personal
care products respectively. Rapid urbanization, increased literacy and rising per capita
income are the key growth drivers for the sector. Around 45% of the population in India is
below 20 years of age and the proportion of the young population is expected to increase in
the next five years. Aspiration levels in this age group have been fuelled by greater media
exposure, unleashing a latent demand with more money and a new mindset. In this
backdrop, industry estimates suggest that the industry could triple in value by 2015 (by
some estimates, the industry could double in size by 2010).
In our view, testing times for the FMCG sector are over and driving rural penetration will
be the key going forward. Due to infrastructure constraints (this influences the cost-
effectiveness of the supply chain), companies were unable to grow faster. Although
companies like HLL and ITC have dedicated initiatives targeted at the rural market, these
are still at a relatively nascent stage.

The bottlenecks of the conventional distribution system are likely to be removed once
organized retailing gains in scale. Currently, organized retailing accounts for just 3% of
total retail sales and is likely to touch 10% over the next 3-5 years. In our view, organized
retailing results in discounted prices, forced-buying by offering many choices and also
opens up new avenues for growth for the FMCG sector. Given the aggressive expansion
plans of players like Pantaloon, Trent, Shopper’s Stop and Shoprite, we are confident that
the FMCG sector has a bright future.

Budget Measures to Promote FMCG

Sector
 2% education cess corporation tax, excise duties and custom duties
 Concessional rate of 5% custom duty on tea and coffee plantation machinery

Budget Impact
The education cess will add marginally to the tax burden of all FMCG companies
The dividend distribution tax on debt funds is likely to adversely effect the other
income components of companies like Britannia, Nestle and HLL
The measure to abolish excise duty on dairy machinery is a positive for companies like
Nestle
Concessional rate for tea and coffee plantation machinery is a positive for Tata Tea,
HLL, Tata Coffee and other such companies
Duty reduction in food grade hexane will have a marginally positive impact on
companies like Marico and HLL
Area specific excise exemptions for North East, J&K, Himachal Pradesh will continue
to encourage FMCG companies to relocate to these areas.

India offers a large and growing market of 1 billion people of which 300 million are
middle class consumers. India offers a vibrant market of youth and vigor with 54% of
population below the age of 25 years. These young people work harder, earn more, spend
more and demand more from the market, making India a dynamic and aspirational society.
Domestic demand is expected to double over the ten-year period from 1999 to 2008. The
number of households with "high income" is expected to increase by 60% in the next four
years to 44 million households.

India is rated as the fifth most attractive emerging retail market. It has been ranked
second in a Global Retail Development Index of 30 developing countries drawn up by A T
Kearney. A.T. Kearney has estimated India's total retail market at $202.6 billion, is
expected to grow at a compounded 30r5 per cent over the next five years. The share of
modern retail is likely to grow from its current 2 per cent to 15-20 percent over the next
decade, analysts feel.

The Indian FMCG sector is the fourth largest sector in the economy with a total
market size in excess of US$ 13.1 billion. The FMCG market is set to treble US$ 33.4
billion in 2015. Penetration level as well as per capita consumption in most product
categories like jams, toothpaste, skin care, hair wash etc in India is low indicating the
untapped market potential. Burgeoning Indian population, particularly the middle class and
the rural segments, presents an opportunity to makers of branded products to convert
consumers to branded products.

India is one of the world’s largest producers for a number of FMCG products but its
FMCG exports are languishing at around Rs 1,000 crore only. There is significant potential
for increasing exports but there are certain factors inhibiting this. Small-scale sector
reservations limit ability to invest in technology and quality up gradation to achieve
economies of scale. Moreover, lower volume of higher value added products reduce scope
for export to developing countries.
The FMCG sector has traditionally grown at a very fast rate and has generally out
performed the rest of the industry. Over the last one year, however the rate of growth has
slowed down and the sector has recorded sales growth of just five per cent in the last four
quarters.
The outlook in the short term does not appear to be very positive for the sector.
Rural demand is on the decline and the Centre for Monitoring Indian Economy (CMIE) has
already downscaled its projection for agriculture growth in the current fiscal. Poor
monsoon in some states, too, is unlikely to help matters. Moreover, the general slowdown
in the economy is also likely to have an adverse impact on disposable income and
purchasing power as a whole. The growth of imports constitutes another problem area and
while so far imports in this sector have been confined to the premium segment, FMCG
companies estimate they have already cornered a four to six per cent market share. The
high burden of local taxes is another reason attributed for the slowdown in the industry At
the same time, the long term outlook for revenue growth is positive. Give the large market
and the requirement for continuous repurchase of these product.

1.2 Company profile of pepsi

 Type Public (NYSE: PEP)

 Founded 1965
 Headquarters New York, USA
 Key people Indra Nooyi, Chairwoman, President & CEO
 Industry Food and beverage
 Products:
 Pepsi
 Tropicana Products
 Gatorade
 Lay's
 Doritos
 Frappuccino (for Starbucks)
 Mountain Dew
 Operating income$6.44 billion USD (2006)
 Net income $5.64 billion USD (2006)
profit margin 16.06%
 Employees 153,000(2005)
 GROUP OF COMPANIES

 Frito-Lay North America

 PepsiCo Beverages North America,
 PepsiCo International
 Quaker Foods North America
Mission

The main objective of the company is to provide best quality

products to its consumer. Another objective is to provide
healthy rewards to its investor, good reward to its employee
and other investor and partners who financially help the
company

Vision

The vision of the company is to improve in all aspects in

which they operate. By improving in social and economical
environment, they want to make tomorrow better than today.
A Brief Pepsi History

In 1893, Caleb Bradham,a young pharmacist from New Bern, North Carolina,
begins experimenting with many different soft drink concoctions. Like many
pharmacists at the turn of the century he had a soda fountain in his drugstore,
where he served his customers refreshing drinks, that he created himself. His most
popular beverage was something he called "Brad's drink" made of carbonated
water, sugar, vanilla, rare oils, pepsin and cola nuts.

One of Caleb's formulations, known as "Brad's drink", created in the summer of 1893, was
later renamed Pepsi Cola after the pepsin and cola nuts used in the recipe. In 1898, Caleb
Bradham wisely bought the trade name "Pep Cola" for $100 from a competitor from
Newark, New Jersey that had gone broke. The new name was trademarked on June 16th,
1903. Bradham's neighbor, an artist designed the first Pepsi logo and ninety-seven shares
of stock for Bradham's new company were issued.

1898 - One of Caleb's formulations, known as

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

1905 - Pepsi-Cola's first bottling franchises are

established in Charlotte and Durham, North
Carolina. Pepsi receives its new logo, its first
change since 1898.

1906 - Pepsi gets another logo change, the third in

eight years. The modified script logo is created with the slogan, "The Original Pure Food
Drink."
1908 - Pepsi-Cola becomes one of the first companies to modernize delivery
from horse drawn carts to motor vehicles. Two hundred fifty
bottlers in 24 states are under contract to make and sell Pepsi-
Cola.

1910 - The first Pepsi-Cola bottlers' convention is held in New

Bern, North Carolina.

1920 - Pepsi theme line speaks to the consumer with "Drink Pepsi-Cola, it will satisfy
you."

1928 - After five continuous losing years, Megargel reorganizes his company as the
National Pepsi-Cola Company, becoming the fourth parent company to own the Pepsi
trademark.

1934 - A landmark year for Pepsi-Cola. The drink is a hit and to attract even more sales,
the company begins selling its 12-ounce drink for five cents (the same cost as six ounces of
competitive colas). The 12-ounce bottle debuts in Baltimore, where it is an instant success.
The cost savings proves irresistible to Depression-worn Americans and sales skyrocket
nationally.
Caleb Bradham, the founder of Pepsi-Cola and "Brad's Drink," dies at 66 (May 27th,
1867-February 19th, 1934).

1935 - Guth moves the entire Pepsi-Cola operation to Long Island City, New York, and
sets up national territorial boundaries for the Pepsi bottler franchise system.

1936 - Pepsi grants 94 new U.S. franchises and year-end profits reach $2,100,000.

In 1940, the Pepsi Cola company made history when the first advertising jingle was
broadcast nationally on the radio. The jingle was "Nickel Nickel" an advertisement for
Pepsi Cola that referred to the price of Pepsi and the quantity for that price "Nickel Nickel"
became a hit record and was recorded into fifty-five languages.

1941 - The New York Stock Exchange

trades Pepsi's stock for the first time.
In support of the war effort, Pepsi's
bottle crown colors change to red,
white, and blue.

1942 - One on many company

sponsored efforts to allow soldiers to
communicate with friends or family.
This record was made in New York
City but often booths would be set up
with mobile recording equipment that
was bought to where the soldiers were. Shell material on solid core. 78 rpm.
1943 - Pepsi's theme line becomes "Bigger Drink, Better Taste."

1948 - Corporate headquarters moves from Long Island City, New York, to midtown
Manhattan.

1950 - Alfred N. Steele becomes President and CEO of Pepsi-Cola. Mr. Steele's wife,
Hollywood movie star Joan Crawford, is instrumental in promoting the company's product
line.

Pepsi receives its new logo, which incorporates the "bottle cap" look. The new
logo is the fifth in Pepsi history.

1953 - "The Light Refreshment" campaign capitalizes on a change in the product's formula
that reduces caloric content.

1955 - Herbert Barnet is named President of Pepsi-Cola.

1959 - Pepsi debuts at the Moscow Fair. Soviet Premier Khrushchev and U.S. Vice
President Nixon share a Pepsi.

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

1962 - Pepsi receives its new logo, the sixth in Pepsi history. The 'serrated' bottle cap logo
debuts, accompanying the brand's groundbreaking "Pepsi Generation" ad campaign.

1963 - After climbing the Pepsi ladder from fountain syrup salesman, Donald M. Kendall
is named CEO of Pepsi-Cola Company. Pepsi-Cola continues to lead the soft drink
industry in packaging innovations, when the 12-ounce bottle gives way to the 16-ounce
size. Twelve-ounce Pepsi cans are first introduced to the military to transport soft drinks
all over the world.

1964 - Diet Pepsi, introduced as America's first national diet soft

drink. Pepsi-Cola acquires Mountain Dew from the Tip Corporation.

1965 - Expansion outside the soft drink industry begins. Frito-Lay of

Dallas, Texas, and Pepsi-Cola merge, forming PepsiCo, Inc.

Military 12-ounce cans are such a success that full-scale

commercial distribution begins.

Mountain Dew launches its first campaign, "Yahoo Mountain

Dew...It'll tickle your innards."

1970 - Pepsi leads the way into metrics by introducing the

industry's first two-liter bottles. Pepsi is also the first company
to respond to consumer preference with light-weight,
recyclable, plastic bottles. Vic Bonomo is named President of Pepsi-Cola. The Pepsi
World Headquarters moves from Manhattan to Purchase, NY.

1974 - First Pepsi plant opens in the U.S.S.R. Television ads introduce the new theme line,
"Hello, Sunshine, Hello Mountain Dew."

1976 - Pepsi becomes the single largest soft drink brand sold in American supermarkets.
The campaign is "Have a Pepsi Day!" and a classic commercial, "Puppies," becomes one
of America's best-loved ads. As people get back to basics, Pepsi is there as one of the
simple things in life.

1977 - At 37, marketing genius John Sculley is named President of Pepsi-Cola.

1978 - The company experiments with new flavors. Twelve-pack cans are introduced.

1980 - Pepsi becomes number one in sales in the take home market.

1981 - PepsiCo and China reach agreement to manufacture soft drinks, with production
beginning next year.

1982 - Pepsi Free, a caffeine-free cola, is introduced nationwide. Pepsi Challenge activity
has penetrated 75% of the U.S. market.

1984 - Pepsi advertising takes a dramatic turn as Pepsi becomes "the choice of a New
Generation." Lemon Lime Slice, the first major soft drink with real fruit juice, is
introduced, creating a new soft drink category, "juice added." In subsequent line of
extensions, Mandarin Orange Slice goes on to become the number one orange soft drink in
the U.S. Diet Pepsi is reformulated with NutraSweet (aspertame) brand sweetener.

1985 - After responding to years of decline, Coke loses to Pepsi in preference tests
by reformulating. However, the new formula is met with widespread consumer rejection,
forcing there-introduction of the original formulation as "Coca-Cola Classic." The cola
war takes "one giant sip for mankind," when a Pepsi "space can" is successfully tested
aboard the space shuttle. By the end of 1985, the New Generation campaign earns more
than 58 major advertising and film-related awards. Pepsi's campaign featuring Lional
Richie is the most remembered in the country, according to consumer preference polls..

1987 - Pepsi-Cola President Roger Enrico is named President/CEO of PepsiCo Worldwide

Beverages. Pepsi-Cola World Headquarters moves from Purchase to Somers, New York.
After a 27 year absence, Pepsi returns to Broadway with the lighting of a spectacular new
neon sign in Times Square.
1988 - Craig Weatherup is appointed President/CEO of Pepsi-Cola Company.

1989 - Pepsi lunges into the next decade by declaring Pepsi lovers "A Generation Ahead."
Chris Sinclair is named President of Pepsi-Cola International. Pepsi-Cola introduces an
exciting new flavor, Wild Cherry Pepsi.

1990 - American Music Award and Grammy winner rap artist Young MC writes and
performs songs exclusively for national radio ads for Pepsi. Ray Charles joins the Pepsi
family by endorsing Diet Pepsi. The slogan is "You Got The Right One Baby."

1991 - Craig E. Weatherup is named CEO of Pepsi-Cola North America, as Canada

becomes part of the company's North American operations. Pepsi introduces the first
beverage bottles containing recycled polyethylene terephthalate (or PET) into the
marketplace. The development marks the first time recycled plastic is used in direct contact
with food in packaging.

1992--Pepsi-Cola launches the "Gotta Have It" theme which supplants the longstanding
"Choice of a New Generation."

1993 - Brand Pepsi introduces its slogan, "Be Young. Have Fun. Drink Pepsi." Pepsi-Cola
profits surpass $1 billion. Pepsi introduces an innovative 24-can multipack that satisfies
growing consumer demand for convenient large-size soft drink packaging. "The Cube" is
easier to carry than the traditional 24-pack and it fits in the refrigerator.
1994 - New advertising introducing Diet Pepsi's freshness dating initiative features Pepsi
CEO Craig Weatherup explaining the relationship between freshness and superior taste to
consumers. Pepsi Foods International and Pepsi-Cola International merge, creating the
PepsiCo Foods and Beverages Company.

1995 - In a new campaign, the company declares "Nothing else is a Pepsi" and takes top
honors in the year's national advertising championship.

1996 - In February of this year, Pepsi makes history once again, by launching one of the
most ambitious entertainment sites on the World Wide Web. Pepsi World eventually
surpasses all expectations, and becomes one of the most landed, and copied, sites in this
new media, firmly establishing Pepsi's presence on the Internet.

1997 - In the early part of the year, Pepsi pushes into a new era with the unveiling of
the GeneratioNext campaign. GeneratioNext is about everything that is young and fresh; a
celebration of the creative spirit. It is about the kind of attitude that challenges the norm
with new ideas, at every step of the way.

PepsiCo. announces that, effective October 6th, it will spin off its restaurant division to
form Tricon Global Restaurants, Inc. Including Pizza Hut, Taco Bell, & KFC, it will be the
largest restaurant company in the world in units and second-largest in sales.

1998 - Pepsi celebrates its 100th anniversary. PepsiCo. Chairman and CEO Roger A.
Enrico donates his salary to provide scholarships for children of PepsiCo
employees. Pepsi introduces PepsiOne - the first one calorie drink without
that diet taste!

2000 - Although Pepsi is a great place to work, Steven Truitt (aka 'struitt') takes his skills
and hard work elsewhere (for more money of course!), therefore putting an end to his Pepsi
page! For more information about Pepsi, choose a search engine and search for 'Pepsi' or
visit www.pepsi.com or www.pepsico.com.
2005 - Pepsi invited to introduce new brand cola

PEPSICO IN INDIA

PepsiCo gained entry to India in 1988 by creating a joint venture with the Punjab
government-owned Punjab Agro Industrial Corporation (PAIC) and Voltas India Limited.
This joint venture marketed and sold Lehar Pepsi until 1991, when the use of foreign
brands was allowed; PepsiCo bought out its partners and ended the joint venture in 1994.
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 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.[citation
needed]

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 Coca-Cola Company and PepsiCo together hold 95% market share of soft-drink
sales in India. PepsiCo has also been alleged[attribution needed] 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, has been banned. Five other Indian states have
announced partial bans on the drinks in schools, colleges and hospitals.

3.1 Highlights of PepsiCo in India:

 World leader - Convenient Foods and Beverages

 Revenues of more than $35 billion
 More than 1,68,000 employees
 Available in nearly 200 countries and territories
 Group’s 37 bottling plants in India
  16 are company owned and 21 are franchisee owned
 Tropicana was acquired in 1998 and PepsiCo merged with The Quaker Oats
Company in 2001
 Generates direct employment for more than 4000 people in India and indirect
employment for 60,000 people

• Set up 8 greenfield sites in backward regions of different states. PepsiCo intends to

expand its operations and is planning an investment of approximately US$ 150
million in the next two-three years.

 Annual exports from India are worth over U.S$60 million

 PepsiCo Founded in 1965 through the merger of Pepsi-Cola and Frito-Lay
 PepsiCo entered India in 1989

Pepsi - Product
The Pepsi-Cola drink 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
but no caffeine.
Some of the different and varied brands of Pepsi are as follows:

1. All Sport 18. Pepsi

2. Aquafina 19. Pepsi Blue
3. Caffeine-Free Pepsi 20. Pepsi Cappuccino
4. Crystal Pepsi 21. Pepsi Max
5. Diet Pepsi 22. Pepsi ONE
6. Gatorade 23. Pepsi Samba
7. Izze 24. Pepsi Tarik
 8. Jazz 25. Pepsi Twist
9. Josta 26. Propel Fitness Water
10. Kas 27. Sierra Mist
11. Manzanita Sol 28. Slice
12. Mirinda 29. SoBe
13. Mountain Dew 30. Storm
14. Mountain Dew AMP 31. Teem
15. Mountain Dew LiveWire 32. Tropicana Products
16. Mountain Dew MDX 33. Tropicana Twister
17. Mug Root Beer

Don't forget about the 2015 pepsi logo!

http://bttf.wikia.com/wiki/Pepsi_Perfect
Coke v/s Pepsi-Product
As seen above both the companies Coke and Pepsi have a number of
products. Many of these products are innovations but there are also
many products which are brought out just as a competitive product for
the other companies. Some of these products that are brought in the
market by both the companies to compete against each other are as
follows:

Coke Pepsi

The main dark cola drink of the company Pepsi version of dark cola which is the
which started the rivalry between these major primary competitor to Coke.
companies.

Full Throttle is an energy drink AMP is an energy drink produced

brand produced by The Coca- and distributed by PepsiCo under
Cola Company. It debuted in late the Mountain Dew soft drink
2004 in North America. brand.

Vault is a carbonated beverage Mountain Dew MDX is an energy

that was released by The Coca- drink manufactured and
Cola Company in June 2005. distributed by PepsiCo under the
Mountain Dew brand. It was
introduced in 2005.
 Powerade is a sports drink by
The Coca-Cola Company and
currently number two in the
sports drink market worldwide.
Sprite is a clear, lemon-lime
flavored, non-caffeinated soft
drink, produced by the Coca-Cola
Company. It was introduced to
the United States in 1961.
Minute Maid is a product line of
beverages, usually associated
with orange juice, but now
extends to soft drinks of many
kinds. The Minute Maid company
is now owned by Coca-Cola, and
is the world's largest marketer of
fruit juices and drinks. It is
headquartered in Houston, Texas.
Gatorade is a non-carbonated
sports drink marketed by Quaker
Oats Company, a division of
PepsiCo. Originally made for
athletes, it is now often
consumed as a snack beverage.
7 Up is a brand of a lemon-lime flavored
soft drink.
Tropicana Products is an
American company based in
Bradenton, Florida, USA, which
is one of the world's largest
producers and marketers of
orange juice. It has been owned
by PepsiCo, Inc. since 1998.
 Nestea is a brand of iced tea
manufactured and distributed by
the Nestle company's beverage
department in the United States,
and by Coca-Cola in several
European countries, Brazil and
Venezuela.
Lipton Original Iced Tea is a
ready-to-drink iced tea brand
sold by Lipton through a
worldwide partnership with
Pepsi.

Barq's is a brand of root beer Mug Root Beer is a brand name of root
notable for being the only major beer made by the Pepsi company.
North American root beer to
contain caffeine. It has been
bottled since the start of the 20th
century and is currently sold by
the Coca-Cola Company.

Diet Coke or Diet Coca-Cola is a Diet Pepsi is a low-calorie

sugar-free soft drink produced carbonated cola. It was
and distributed by The Coca-Cola introduced in 1964 as a variant of
Company. It was introduced in Pepsi-Cola with no sugar.
the United States in July 1982.

Kinley is a brand of still or Aquafina is a non-carbonated bottled water

carbonated water owned by The produced by PepsiCo.
Coca-Cola Company.
 Aquarius is a mineral sports All Sport was a sports drink. It is
drink manufactured by The Coca- produced by PepsiCo.
Cola Company. It was first
introduced in 1983.

Fanta is a soft drink brand owned Mirinda is a brand of soft drink.

by The Coca-Cola Company. It is Mirinda is owned by PepsiCo.
produced and distributed by The
Coca-Cola Company's bottlers.

Sprite Ice was the first flavor Pepsi Blue is a soft drink made by PepsiCo
extension for The Coca-Cola and launched in mid-2002.
Company's Sprite brand soft
drink.

Coca-Cola Blak is a coffee- Pepsi Cappuccino is a

flavoured soft drink introduced cappuccino-flavored carbonated
by Coca-Cola in 2006. soft drink produced by Pepsico.
Maaza is a Coca-Cola fruit drink Slice is a line of fruit-flavored
brand marketed in India and soft drinks manufactured by
Bangladesh. PepsiCo and introduced in 1984.

Limca is a lemon and lime Teem was a lemon-lime-flavored

flavoured carbonated soft drink soft drink produced by The
made in India by Coca-cola. Pepsi-Cola Company.
 1.3 Company profile of cocacola

HISTORY OF COCA COLA

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

1894 – A modest start for a Bold Idea

In a candy store in Vicksburg, Mississippi, brisk sales of the new fountain beverage called
Coca-Cola impressed the store's owner, Joseph A. Biedenharn. He began bottling Coca-
Cola to sell, using a common glass bottle called a Hutchinson.

Biedenharn sent a case to Asa Griggs Candler, who owned the Company. Candler thanked
him but took no action. One of his nephews already had urged that Coca-Cola be bottled,
but Candler focused on fountain sales.
1899 The first bottling agreement
Two young attorneys from Chattanooga, Tennessee believed they could
build a business around bottling Coca-Cola. In a meeting with Candler,
Benjamin F. Thomas and Joseph B. Whitehead obtained exclusive
rights to bottle Coca-Cola across most of the United States (specifically
excluding Vicksburg) -- for the sum of one dollar. A third Chattanooga
lawyer, John T. Lupton, soon joined their venture.
1900-1909 … Rapid growth
The three pioneer bottlers divided the country into territories and sold bottling rights to
local entrepreneurs. Their efforts were boosted by major progress in bottling technology,
which improved efficiency and product quality. By 1909, nearly 400 Coca-Cola bottling
plants were operating, most of them family-owned businesses. Some were open only
during hot-weather months when demand was high.
1916 … Birth of the contour bottle
Bottlers worried that the straight-sided bottle for Coca-
Cola was easily confused with imitators. A group
representing the Company and bottlers asked glass
manufacturers to offer ideas for a distinctive bottle. A
design from the Root Glass Company of Terre Haute,
Indiana won enthusiastic approval in 1915 and was
introduced in 1916. The contour bottle became one of the
few packages ever granted trademark status by the U.S.
Patent Office. Today, it's one of the most recognized icons in the world -
even in the dark!
1920s … Bottling overtakes fountain sales
As the 1920s dawned, more than 1,000 Coca-Cola bottlers were operating in the U.S. Their
ideas and zeal fueled steady growth. Six-bottle cartons were a huge hit after their 1923
introduction. A few years later, open-top metal coolers became the forerunners of
automated vending machines. By the end of the 1920s, bottle sales of Coca-Cola exceeded
fountain sales.
1920s and 30s … International expansion
Led by longtime Company leader Robert W. Woodruff, chief
executive officer and chairman of the Board, the Company began
a major push to establish bottling operations outside the U.S.
Plants were opened in France, Guatemala, Honduras, Mexico, Belgium, Italy, Peru, Spain,
Australia and South Africa. By the time World War II began, Coca-Cola was being bottled
in 44 countries.
1940s … Post-war growth

During the war, 64 bottling plants were set up around the world to
supply the troops. This followed an urgent request for bottling
equipment and materials from General Eisenhower's base in North
Africa. Many of these war-time plants were later converted to
civilian use, permanently enlarging the bottling system and
accelerating the growth of the Company's worldwide business.
1950s … Packaging innovations

For the first time, consumers had choices of Coca-Cola package

size and type -- the traditional 6.5-ounce contour bottle, or larger
servings including 10-, 12- and 26-ounce versions. Cans were also
introduced, becoming generally available in 1960.
1960s … New brands introduced
Following Fanta® in the 1950s, Sprite®, Minute Maid®, Fresca® and TaB® joined brand
Coca-Cola in the 1960s. Mr. Pibb® and Mello Yello® were added in the 1970s. The 1980s
brought diet Coke® and Cherry Coke®, followed by POWERADE® and DASANI® in
the 1990s. Today hundreds of other brands are offered to meet consumer preferences in
local markets around the world.
1970s and 80s … Consolidation to serve customers
As technology led to a global economy, the retailers who sold Coca-Cola merged and
evolved into international mega-chains. Such customers required a new approach. In
response, many small and medium-size bottlers consolidated to better serve giant
international customers. The Company encouraged and invested in a number of bottler
consolidations to assure that its largest bottling partners would have capacity to lead the
system in working with global retailers.
1990s … New and growing markets
Political and economic changes opened vast markets that were closed or underdeveloped
for decades. After the fall of the Berlin Wall, the Company invested heavily to build plants
in Eastern Europe. And as the century closed, more than $1.5 billion was committed to
new bottling facilities in Africa.
21st Century
The Coca-Cola bottling system grew up with roots deeply planted in local communities.
This heritage serves the Company well today as people seek brands that honor local
identity and the distinctiveness of local markets. As was true a century ago, strong locally
based relationships between Coca-Cola bottlers, customers and communities are the
foundation on which the entire business grows.

BRANDS OF COCA COLA

Coca-Cola Zero® has been one of the most successful product launch
hes in Coca Cola’s history. In 2007, Coca Cola’s sold nearly 450 million
cases globally. Put into perspective, that's roughly the same size as Coca
Cola’s total business in the Philippines, one of our top 15 markets. As of
September 2008, Coca-Cola Zero is available in more than 100 countries.

Energy Drinks

For those with a high-intensity approach to

life, Coca Cola’s brands of Energy Drinks
contain ingredients such as ginseng
extract, guarana extract, caffeine and B
vitamins.

Juices/Juice Drinks
We bring innovation to the goodness of
juice in Coca Cola’s more than 20 juice and
juice drink brands, offering both adults and
children nutritious, refreshing and flavorful
beverages.
Soft Drinks

Coca Cola’s dozens of soft drink brands

provide flavor and refreshment in a variety
of choices. From the original Coca-Cola to
most recent introductions, soft drinks from
The Coca-Cola Company are both icons and
innovators in the beverage industry.
Sports Drinks

Carbohydrates, fluids, and electrolytes team

together in Coca Cola’s Sports Drinks,
providing rapid hydration and terrific taste
for fitness-seekers at any level

Tea and Coffee

Bottled and canned teas and coffees

provide consumers' favorite drinks in
convenient take-anywhere packaging,
satisfying both traditional tea drinkers and
today's growing coffee culture.

Water

Smooth and essential, our Waters and

Water Beverages offer hydration in its
purest form.
Other Drinks

So much more than soft drinks. Coca

Cola’s brands also include milk products,
soup, and more so you can choose a Coca
Cola Company product anytime, anywhere
for nutrition, refreshment or other needs.

Product
In marketing, a product is anything that can be offered to a market
that might satisfy a want or need. It is of two types: Tangible
(physical) and Intangible (non-physical). Since services have been at
the forefront of all modern marketing strategies, some intangibility
has become essential part of marketing offers. It is therefore the
complete bundle of benefits or satisfactions that buyers perceive they
will obtain if they purchase the product. It is the sum of all physical,
psychological, symbolic, and service attributes, not just the physical
merchandise. All products offered in a market can be placed between
Tangible (Pure Product) and Intangible (Pure Service) spectrum.

A product is similar to goods. In accounting, goods are physical

objects that are available in the marketplace. This differentiates them
from a service, which is a non-material product. The term goods is
used primarily by those that wish to abstract from the details of a
given product. As such it is useful in accounting and economic
models. The term product is used primarily by those that wish to
examine the details and richness of a specific market offering. As
such it is useful to marketers, managers, and quality control
specialists.

A service is a non-material or intangible product - such as

professional consultancy, serving, or an entertainment experience.
The Coca-Cola formula is The Coca-Cola Company's secret recipe for
Coca-Cola. As a publicity marketing strategy started by Robert W.
Woodruff, the company presents the formula as one of the most
closely held trade secrets ever and only a few employees know or
have access to. This Coca-Cola formula appears to be the original formula
to Coca-Cola. It is from the book “For God, Country and Coca-Cola”.

The company Coca-cola is a multinational and it is not limited to one

product. Through the years they have invented and introduced many
products than their main cola drinks. The list of Coca-cola brands
are as follows:

1. Appletiser 36. Lemon & Paeroa

2. Aquarius 37. Lift
3. BPM Energy 38. Lift plus
4. Barq's 39. Lilt
5. Beat soda 40. Manzana Lift
6. Beverly 41. Mare Rosso
7. Cannings 42. Mello Yello
8. Cheers 43. Mezzo Mix
9. Ciel 44. Minute Maid
10. Coca-Cola Black 45. Nestea
Cherry Vanilla 46. New Coke
11. Coca-Cola Blak 47. Nordic Mist
12. Coca-Cola C2 48. OK Soda
13. Coca-Cola Cherry 49. Pibb Xtra
14. Coca-Cola Citra 50. Powerade
15. Coca-Cola M5 51. Qoo
16. Coca-Cola Zero 52. Raspberry Coke
17. Coca-Cola 53. Relentless
18. Coca-Cola with 54. Sarsi
Lemon 55. Senzao
19. Coca-Cola with Lime 56. Simply Orange
20. Dasani 57. Smart
21. Delaware Punch 58. Sparkle
22. Diet Coke 59. Sprite
23. Fanta 60. Sprite Ice
24. Fanta Citrus 61. Sprite Remix
25. Fioravanti 62. Sprite Zero
26. Fresca 63. Surge
27. Frisco 64. Swerve
28. Fruitopia 65. Tab
29. Frutonic 66. Tab Clear
30. Full Throttle 67. Tab Energy
31. Georgia 68. Tab X-Tra
32. Hi-C 69. Tiky
33. Hit 70. Vault
34. Kia-Ora
35. Kinley
 Chapter-2
RESEARCH METHODOLOGY

RESEARCH OBJECTIVE
  GENERAL OBJECTIVE:
 To compare distribution channel of both Pepsi and cocacola.

 PRIMARY OBJECTIVE:
 To study distribution channel of Pepsi and cocacola
 To find the problems faced by intermediaries
 To find weather the intermediaries are satisfied with the
company.
RESEARCH METHODOLOGY

Sample size: 50 samples

Sample population: Ahmedabad(Bapunagar)

Source of data:
We use two methods of data collection for project.
• Primary data
• Secondary data
Primary data
• The instrument used for the collection of primary data are
 Questionnaire
 Personal interaction
• The primary data has been collected through a survey
conducted in Ahmedabad.
• To know the problems faced by the distributors and
reatailers regarding delivery and storage of softdrink, to
know the satisfaction of the intermidiaries
Secondary data Collection
Secondary Data is collected from the following sources that
provide relevant information regarding the company and its
activities.

 Websites of the company

 Brochures
 By consulting project guide of company
  Magazines of the company
Main areas studied:
the study has been conducted in Ahmadabad city in Bapunagar area to
know the problems and satisfaction of the intermediaries
 Sample :
 Softdrink sellers in Ahmadabad city.
 Sample units:
Panwalas, grocery shops, soda shops

 Research type:
Convenient Sampling

 Data collection:
1. Questionnaire has been designed using close ended and open
ended questions.
2. Questionnaire technique has been used to extract detailed
information for market research and to obtain feedback of sellers.
3. Field study is used to fill questionnaire.
 Data Analysis:-
We have used charts for data analysis.

 Limitations:
1. Survey is limited to Ahmedabad and Due to
descriptive study may or may not have the potential to draw
powerful inferences.
2. The sample size of 50 respondents across
Ahmedabad is a comprehensive composition and representation
of the population. As per our observation there is possibility that
several respondents might have answered with hesitation and
doubt.
Chapter-2.1

DISTRIBUTORS’ ANALYSIS
1)what do you sell?

Pepsi 2
Cocacol
a 3
Both 0

chart 1

0%

40%
Pepsi
Cocacola
Both
60%

Conclusion: there are 60% of the distri butors are selling cocacola and40 %
of pepsi from the result we can conclude that there are more demand of
cocacola in the market and hence there are more number of distributors of
cocacola.
2)since how many years are you in distribution?

0 to 1 0
1 to 3 1
3to 5 3
more
than 5 1

chart 2

3
3
2.5

respondents 1.5
1 1
1 Series1

0.5
0
0
0 to 1 1 to 3 3to 5 more than
5
years

Conclusion : there are only 1 distributors who has experience of 1 year in the
field of distribution,3 distributors are such who has experience of 3 to 5
years .so we can conclude that the market of the ditribution is not very old
because the distributors are selling in the market not more that 5 years there
are only one distributor who selling in the market for the 12 years.
3)How much quantity do you purchase?

100 to 200 crates 0

200 to 400 crates 1
400 to 500crates 1
More than
500crates 3

chart 3

2.5
respondents

1.5

0.5

0
100 to 200 200 to 400 400 to More than
crates crates 500crates 500crates

Conclusion: there are 3 distributors who are selling more than 500 crates ,and
only 1 who is selling more than 400 crates.so we can conclude that the market
is very big for the cola sellers ,there is hefty demand in the market.
4) what is your order cycle?

Every week 1
Every month 0
Others__________________ 4days,alternatedays,

Concusion: 4 distributors are such who’s order cycle is either 2 days or

alternate days only one distributor is such who’s order cycle is every week.

5)who manages your inventory ?

Compan
y 0
You 5

chart 4

0, 0%

Company
You

5, 100%

Conclusion:all the distributors manages their inventory themselves they do

not depend on the other external support.
6)do you get inventory in good condition?

Yes 5
No 0

chart 5

No
0%

Yes
No

Yes
100%

Conclusion: company provides the goods in the good condition as seen in the
result that all the distributors has addmited that they get the inventory in good
condition.some times it happens that the goods are not provided well so there
are other problems the distributors has to face to manage inventory like
maintenaceof the inventory and so on.but if the company is providing goods
in good condition there is no issue of having conflict between company and
the distributors.
7) do companies marketing personnel helps to solve problem regarding
inventory ?

Yes 5
No 0

chart 6

0, 0%

Yes
No

5, 100%

Conclusion; all the distributor are getting adequate help from the company to
solve the problem regarding the inventory hence there is no issue of the
inventory conflict as seen in the above question but still distributors admitted
that they get help from the company to get solved the problem of replacement
and bad supply of inventory.
8)which technology do you use to manage inventory?

Ans: there are many software’s available in the market but 2 distributors were
using redix software for the inventory management and others were using the
basic software like visual basic and foxpro.
So, technology plays a roll in the inventory management for the distributors.

9)what do you provide retailers as point of purchase assessment?

Umbrella 4
Tent 0
Holdings 2
Paintings 3

chart 7

4
4
3.5
3
3
respondents

2.5
2
2
1.5 Series1

1
0.5
0
0
Umbrella Tent Holdings Paintings
material

Conclusion: if the retailers are not provided the material for the point of
purchase than they have to suffer more for the selling, retailers are getting
umbrella, and painting for the advertisement of the company.

10) Do you know any scheme given to you?

 Yes 5
No 0

chart 8

0%

Yes
No

100%

Conclusion: All the distributors are aware about the schemes provided by the
company, company provides the schemes like cash discount on certain
purchase, distributors get more than 100 rs discount on the certain purchase
limit.

11) How do you to come to know about schemes?

Ans: many distributors come to know about the schemes by the company it
self, many come to know by the company’s marketing personnel.

Conclusion: the distributors are well aware about the schemes and they are
well informed by the company for the schemes.

Chapter-2.2
RERAILERS’ ANALYSIS
1) What do you sell?

pepsi 20
cocacola 25

chart 1

pepsi
44%

cocacola
56%

pepsi cocacola

Conclusion: From the result we can see that out of 45 respondents 25 or 56%
are selling Cocacola and rest 44% or 20 are selling brand pepsi.here we have
selected area of Bapunagar of Ahmadabad from the sample we can assume
that the selling of cocacola is higher than pepsi.
2) Do you get cold drink in time?

Yes 43
No 2

chart 2

2, 4%

43, 96%

Yes No

Conclusion: only 2 retailers were not getting the order in time otherwise all
the respondent were getting the order in time . As reasons they inform that de
to the late delivery of the distributors they are not getting the order in time.43
or 96% retailers are getting the order on time that suggest that retailers are
getting the order in time.
3) When does distributor come to your shop to give delivery?

Every day 0
Every week 12
Every month 33

chart 3

35
30
25
20
respondents
15
10
5
0
Every day everyweek Every month
order timing

Conclusion: Generally all the retailers book their order every month, because
of summer the retailers book more order on monthly basis 12 retailers book
their order every week and 33 respondent have admitted that they get the
delivery on monthly basis,
4) When do you pay money for delivery?

At delivery 40
Next day 2
After one
week 3

CHART 4

0
After one week
TIMING

1
Next day

44
At delivery

0 10 20 30 40 50
RESPONDENTS

Conclusion: retailers pay their money at the delivery time only 1 respondent
has said that he was not paying the money next day.
5) How do you inform your order to distributor?

By telephone 2
On the day’s delivery
time 40
Other please specify 3

CHART 5

3
3 40
2
MODE OF ORDER

Other please specify

2
On the day’s delivery time

By telephone
1

0 10 20 30 40
RESPONDENTS
Conclusion: 40 retailers are such those they register their order on the day’s
delivery time, 3 retailers have their fix order they do not register the order
they have fixed order. 2 retailers are such who register the order on the
telephone.
6) Do you get delivery as per order?

Yes 45 No 0

CHART 6

45

Yes No

Conclusion: 100% retailers said that they were getting the order as per they
have given to the distributor. Retailers are seems satisfied from the order
delivery from the distributors and company.
7) Does your distributor give information about schemes?
Yes 44
No 1

CHART 7

1, 2%

44, 98%

Yes No

Conclusion: only 1 retailer was such who did not know the schemes of the
company .the information of schemes first come to the distributors and then
distributors inform to the retailers 44 respondent out of 45 were getting the
right information from the distributors.
8) do you know any kind of scheme given to you?
Yes 45
No 0

CHART 8

45

Yes No

Conclusion: all 100% retailers know about the scheme given to them.
9) What kind of facility do you have to store colddrink?
Fridge 45
ice-box 0
Anyother 0

CHART 9

45
45
40
35
RESPONDENT

30
25
20
15
10
5 0 0
0
Friedge ice-box anyother
FACILITY

Conclusion: company provides many facility to store the softdrinks fridge

and ice box are such facility for the storage. All the retailers said that they got
the fridge from the company for the storage of the softdrink.
10) Does company provide any advertisement material like umbrellas, cap
etc.?
Yes 45
No 0

CHART 10

45

Yes No

Conclusion: company provides advertisement material to the retailers. They

get this material from the distributors. All 45 are getting the material from the
distributors.
11) if yes do you satisfied with given material?

Yes 39
No 6

CHART 11

6, 13%

Yes
No

39, 87%

Conclusion: As mentioned on the question we can check the satisfaction

level of the retailers, here 87% of the retailers are satisfied from the company
for the given material , rest 6 are not satisfied when I asked for the reason
why they are not satisfied they answered that they want more advertisement
material.
12) Do you get delivery in good condition?

Yes 45
No 0

CHART 12

0, 0%

Yes
No

45, 100%

Conclusion: when the retailers get the order they have to face many problems
like dirty crates, broken seal of the bottles. Broken crates and many such
problems they face. Here retailers are not facing the problem of bad condition
of the delivery because company has adopted plastic cover packaging for the
delivery.
13) Which brand do you think better, why?

cocacola 25
pepsi 20

CHART 13

pepsi, 20, 44% cocacola

cocacola, 25, pepsi
56%

Conclusion: 56% has admitted that Coca-Cola is better brand than Pepsi,
while Pepsi has scored 44% for the acceptance as the better brand.
14) Are you satisfied with the distributors in terms of provided point of
purchase assessment?

Very much satisfied 35

Much satisfied 5
Satisfied 2
Not much satisfied 3
Very much dissatisfied 0

CHART 14

0
Very much dissatisfied
SATISFACTION

3
Not much satisfied
2
Satisfied
5
Much satisfied
35
Verymuch satisfied

0 5 10 15 20 25 30 35

RESPONDENT

Conclusion: from the above result we can see that 35 retailers out of the 45
retailers, 5 retailers were much dissatisfied, 2 were only satisfied, 3 were not
much satisfied. We can conclude that most of the retailers are satisfied from
the distributors and company.
 Chapter-2.3
Porter’s five force analysis
• Rivalry among competing firms:
– In the Fmcg industry rivalry among competitors is fierce.
– There are scarce customers because industry is highly saturated
and the competitors try to snach their share of market
– Market players use all sort of tacticts and activities from
intensive advertisement campaigns to promotional stuff and price
war etc.
– Hence ,the intensity of rivalry is high.
• Potential entrant of new competitors:
– Fmcg industry can does not have any measures which can
control the entry of new firms.
– The resistance is very low and the stucture of the industry is so
complex that new firms can easily enter and also offer tough
competition due to cost effectiveness
– Hence,potential entry of new firms is highly viable
• Potential development of substitute product:
– There are complex and never ending needs and no firm can
satisfy all sorts of needs alone .
– There are plenty of substitute goods available in the market that
can be replaced if consumers are not satisfied with one.
– The wide range of choices and needs give a sufficient room for
new product development that can replace existing goods.
– Every other day there is some sort of new product variants and
designs .
– This leads to h igher consumer expectation.
• Bargaining power of consumer:
– Bargaining power of consumer is also very high.
– This is because in fmcg industry the swithching cost of most of
the goods is very low and there is no threat of buying one
product over other .
– Customers are never reluctant to buy or try new things.
Chapter-2.4
Swot analysis of Pepsi
Strengths:
– Strong core brand
– Strong market position
– Solid brand portfolio
– Strong revenue growth
– Economies of scale
– Filtered Water instead of Spring Water makes the
production,logistics, and profit margins a lot greater on their
bottled water sales.

Weakness:
– Concentrated in North America (US, Canada, Mexico), where
almost 70% of revenues come from
– Health Craze will hurt soft drink sales.

-Unhealthy snacks

opportunities :
– Acquisitions & alliances
– Bottled water growth
– Hispanic growth in the US and Pepsi's ability to meet their tastes
with current product lines (i.e., Sabritas chips)
– Growth in emerging markets
– Growing consumer health consciousness - i.e., consumer focus
on non-carbonated beverages like Gatorade, Aquafina, Litpon,
Quaker Oats, etc

Threat:
– Declining economy/recession
– Sluggish growth of carbonated drinks
– Coca-Cola & other smaller, more nimble operators
– Commodity price increases, fluctuating oil prices effect
production and distribution (gas, plastic)
Chapter-2.5
Swot analysis of
Cocacola
Strength:
– Brand equity/image & recognition
– Product distribution and worldwide network
– Solid financial performance
– One of the world's most recognized brand
– Product diversification (water, juices, soft drinks, sport drinks,
etc)
– Combining with fast food retailers to increase market equity.
– Coca Cola business system, it allows it to conduct business on a
– Global scale while maintain a local approach.
– Brand loyalty
– New Technology
Weakness:
Credit rating
[*] Customer concentration, particularly in the US (Wal-Mart, for
example, accounts for more than 10% of Coca Cola's business in the
US)
Opportunities:
– New products
– Bottled water growth
– Acquisitions of smaller players
– Health consciousness growth, specially of baby boomers
– Growing US Hispanic Population who are loyal to the brand &
consume more soda per capita
Threats:
– Commodity prices growth
– Image perception in certain parts of the world (i.e., Colombia)
– Smaller, more nimble operators/players
– Key competitors (Pepsi, etc)
– Inefficient and outdated distribution model with franchised
bottling companies
 Chapter-3
DISTRIBUTION CHANNEL
Physical distribution (or place) is one of the four elements of the marketing mix. An
organization or set of organizations (go-betweens) involved in the process of making a
product or service available for use or consumption by a consumer or business user.

The other three parts of the marketing mix are product, pricing, and promotion.

The distribution channel

Chain of intermediaries, each passing the product down the chain to the next organization,
before it finally reaches the consumer or end-user.... This process is known as the
'distribution chain' or the 'channel.' Each of the elements in these chains will have their
own specific needs, which the producer must take into account, along with those of the all-
important end-user.

Channels

A number of alternate 'channels' of distribution may be available:

• Distributor, who sells to retailers

• Retailer (also called dealer or reseller), who sells to end customers
• Advertisement typically used for consumption goods

Distribution channels may not be restricted to physical products alone. They may be just as
important for moving a service from producer to consumer in certain sectors, since both
direct and indirect channels may be used. Hotels, for example, may sell their services
(typically rooms) directly or through travel agents, tour operators, airlines, tourist boards,
centralized reservation systems, etc.

There have also been some innovations in the distribution of services. For example, there
has been an increase in franchising and in rental services - the latter offering anything from
televisions through tools. There has also been some evidence of service integration, with
services linking together, particularly in the travel and tourism sectors. For example, links
now exist between airlines, hotels and car rental services. In addition, there has been a
significant increase in retail outlets for the service sector. Outlets such as estate agencies
and building society offices are crowding out traditional grocers from major shopping
areas.

Channel decisions

• Channel strategy
o Gravity
o Push and Pull strategy
• Product (or service)<>Cost<>Consumer location
Managerial concerns

The channel decision is very important. In theory at least, there is a form of trade-off: the
cost of using intermediaries to achieve wider distribution is supposedly lower. Indeed,
most consumer goods manufacturers could never justify the cost of selling direct to their
consumers, except by mail order. Many suppliers seem to assume that once their product
has been sold into the channel, into the beginning of the distribution chain, their job is
finished. Yet that distribution chain is merely assuming a part of the supplier's
responsibility; and, if they have any aspirations to be market-oriented, their job should
really be extended to managing all the processes involved in that chain, until the product or
service arrives with the end-user. This may involve a number of decisions on the part of the
supplier:

• Channel membership
• Channel motivation
• Monitoring and managing channels

Type of marketing channel

1. Intensive distribution - Where the majority of resellers stock the 'product' (with
convenience products, for example, and particularly the brand leaders in consumer
goods markets) price competition may be evident.
2. Selective distribution - This is the normal pattern (in both consumer and industrial
markets) where 'suitable' resellers stock the product.

Exclusive distribution - Only specially selected resellers or authorized

dealers Channel motivation

It is difficult enough to motivate direct employees to provide the necessary sales and
service support. Motivating the owners and employees of the independent organizations in
a distribution chain requires even greater effort. There are many devices for achieving such
motivation. Perhaps the most usual is `incentive': the supplier offers a better margin, to
tempt the owners in the channel to push the product rather than its competitors; or
compensation is offered to the distributors' sales personnel, so that they are tempted to
push the product. Dent defines this incentive as a Channel Value Proposition or business
case, with which the supplier sells the channel member on the commercial merits of doing
business together. He describes this as selling business models not products.

Monitoring and managing channels

In much the same way that the organization's own sales and distribution activities need to
be monitored and managed, so will those of the distribution chain.
In practice, many organizations use a mix of different channels; in particular, they may
complement a direct salesforce, calling on the larger accounts, with agents, covering the
smaller customers and prospects. These channels show marketing strategies of an
organisation. Effective management of distribution channel requires making and
implementing decision in these areas. 1-Recruiting 2-Training 3-Motivating 4-Servicing 5-
Compensating 6-Evaluating and replacing channel members.
Chapter-3.1
DISTRIBUTION CHANNEL OF
PEPSICO.
Distribution channel of Pepsi

Pepsi’s products are brought to market through direct-store-delivery (DSD),

Customer warehouse and foodservices and vending distribution network. The
distributing system used depends on customer needs, product characteristics
and local trade practices.

Pepsi BOTTLE
RS

WAREHOU
SES

RETAILER
DISTRIBUT S
ORS

WHOLESAL
WAREHOU ER
SES

RETAILERS RETAILE
RS

Direct-store- delivery
Pepsi’s bottlers and distributors operate dsd systems that deliver snacks and
beverages directly to retail stores where the products are merchandised by
employees or bottlers.DSD enables to merchandise with maximum visibility
and appeal.DSD is especially well-suited to product that is restocked often
and responds to in store promotion and merchandising.

Customer warehouse:
Some of the products ate delivered from manufacturing plant and warehouse
to customer warehouse and retail stores. these less costly systems generally
works best for products that are less fragile and perishable, have lower
turnover, and are less likely to be impulse purchase.

Food service and vending:

Pepsi’s foodservice and vending sales force distribution snacks, foods and
beverages to third party foodservices and vending distributors and operators.
Foodservice and vending sales force also distribute certain beverages through
Pepsi’s bottlers. This distribution system supplies products to schools,
businesses, stadiums, reataurants and similar locations.
Chapter-3.2
DISTRIBUTION CHANNEL OF
COCACOLA.
Distribution channel of Cocacola
Cocacola has a wide and well managed network of salesmen appointed for
taking up the responsibility of distribution of products to diverse parts of the
cities. The distribution channels are constructed in such a way that the
demand of customers is fulfilled at the right place and the right time when it is
needed by them.

A typical distribution chain at cocacola would be:

Production --- Plant Warehouse --- Depot Warehouse --- Distribution
Warehouse --- Retail Stock --- Retail Shelf --- Consumer

The customers of the Company are divided into different categories and
different routes, and every salesman is assigned to one particular route, which
is to be followed by him on a daily basis. A detailed and well organized
distribution system contributes to the efficiency of the salesmen. It also leads
to low costs, higher sales and higher efficiency thereby leading to higher
profits to the firm.
Chapter-3.3
COMPARATIVE STUDY OF
DISTRIBUTION CHANNEL
We can comprare both distribution channel by clicking the distribution
route and distribution system.

DEPARTMENTS INVOLVED IN THE DISTRIBUTION PROCESS

The Distribution process mainly consists of three departments:

• Distribution Department: It appoints distributors and establishes a

distribution network, processes approved sale orders and prepares
invoices, arranges logistics and ship products, co-ordinates with
distributors for collections and monitors distribution stocks and their
set-up. Pepsi is having more retailers than cocacola but it has lesser
sales than cocacola because of the brand image of more stronger soda
(thumps up) how ever it tastes more spicy than pepsi.

• Finance Department: It checks credit limits and approves sales orders

in compliance with the credit policy followed by the firm, records
collections from distributors, Coca-Cola periodically reconciles
outstanding balances from distributors, obtains balance confirmation
from distributors and follows up outstanding balances.

• Shipping or Warehousing Department: It dispatches goods as per

approved by order, ensures that stocks are dispatched on a FIFO basis,
ensures physical control over load out area and updates warehouse
stock records in a timely manner.
DISTRIBUTION ROUTES

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

• Key Accounts: The customers in this category collectively contribute

a large chunk of the total sales of the Company. It basically consists
of organizations that buy large quantities of a product in one single
transaction. The survey shows that cocacola is having more number
of sales than pepsi. The Coccola provides goods to these customers
on credit, payments being made by them after a certain period of time
i.e. either a month of half a month.
Examples: Clubs, fine dine restaurants, hotels, Corporate houses etc.

• Future Consumption: This route consists of outlets of Coca-Cola

products, wherein a considerable amount of stock is kept in order to
use for future consumption. The stock does not exhaust within a day
or two, instead as and when required stocks are stacked up by them so
as to avoid shortage or non-availability of the product.comapring with
pepsi as mentioned erlier it has not more sales than cocacola and the
view of future consumption also plays major role for selling.
• Examples: Departmental stores, Super markets etc.

• Immediate Consumption: The outlets in this route are those which

require stocks on a daily basis. The stocks of products in these outlets
are not stored for future use instead, are exhausted on the same day
 and might run a little into the next day i.e. the products are consumed
at a fast pace.pepsi is using this strategy for the selling of its products
Examples: Small sized bars and restaurants, educational institutions
etc.
• General: Under this route, all the outlets that come in a particular
area or an area along with its neighboring areas are catered to. The
consumption period is not taken into consideration in this particular
route.

DISTRIBUTION SYSTEM

• Direct distribution: In direct distribution, the bottling unit or the

bottler partner has direct control over the activities of sales, delivery,
and merchandising and local account management at the store
level.cocacola is having more bottaling units than pepsi it has
advantage to cocacola for direct distribution.
• Indirect distribution: In indirect distribution, an organization which is
not part of the Coca-Cola system has control on one or more of the
distribution elements (Sales, delivery, merchandising and local account
management).
Merchandising: Merchandising means communication with the consumer at
the point of purchase to convey product benefit, value and Quality. Pepsi
provides more point of purchase to its retailers, Sales people and delivery
personnel both have this responsibility. In certain locations special teams who
go into business locations to specifically merchandise Pepsi’s products.
Conclusion:

Retailers’

From the survey we can conclude that cocacola is having edge over pepsi, in
forms of not only distribution but also in product differentiation.there has
been more sell of cocacola seen in survey it is about 56% and pepsi is having
that 44% from the survey we can assurely conclude that cocacola is having
more sells than pepsi. Only 2 retailers were not getting the order in time from
that generally all the retailers book their order every month because of
summer the retailers book more orders on monthly basis. Retailers pay their
money at the delivery time only 1 respondent has said that he was paying the
money .only one retailers was such whother did not know the scemes of the
company .otherwise all other respondent know about the schemes.company
provides many facility to store the soft drinks like fridge.pepsi provides more
point of point of purchasematerial to retailers and 87% of the retailers are
satisfied with given material. Company has adopted plastic cover packsging
so there is no problem of broken bottles because of clash.at last retailers are
getting the delivery from distributors .retailers like cocacola brand more than
pepsi.

Distributors:
Out of 5 distributors 2 sell pepsi and 3 sell cocacola .we can conclude that
market of distribution is increasing the sell is going up every day.distributiors
sell above 400-500 crates. For the order the cycle is more
alternative.delivered order is managed by the distributors themselves. Because
of having good delivery there is no question to solve the problem regarding
inventory. To manage inventory distributors use latest software like redix
some of the distributors .as mentioned in retailers conclusion distributors
provide umbrellas,tent,hordings and painting to the retailers as per their need.
All the distributors know the schemes given to them.
 Bibliography

www.authorstream.com
www.cocacola.com
www.pepsico.com
www.docstoc.com
www.scribd.com
http://www.agriculture-industry-india.com/agricultural-commodities/soft-
drinks.html
http://www.slideshare.net/rajsinghprofessional/cocacola-in-rural-india
http://inventors.about.com/library/inventors/blpepsi.htm
http://www.indiabschools.com/marketing_018.htm
http://www.sirpepsi.com/pepsi11.htm
http://swiftwaterlogistics.com

Philip Kotler, Kelvin Lane Keller, Abraham Koshay and Mithileshwar Jha, “
MARKETING MANAGEMENT”
2. David L. Loudon and Albert J. Della Bitta, “ CONSUMER BEHAVIOUR,” 4TH Edition
TATA McGraw-HILL
 Annexure

Distributors questionnaire
 S.K. PATEL INSTITUTE OF MANAGEMENT &
COMPUTER STUDIES
Sector: 23, GH-6 Road corner, Gandhinagar-382 023
Phone: 079- 23245729 fax: 079-23248119
Website: www.skpatel.org, E-mail:skpinfo@skpatel.org

Respected sir,

We are student of S.K.patel institute of management and computer

studies, we are undertaking a Grand project as a part of our curriculum.We
are carrying a survey on distribution channel of pepsi and cocacola . in
Ahmedabad.
We request you to cooperate with us and give response to
questionnaire. The data collected is purely for academic purpose and would
be treated with utmost confidentially.

Thank you .

QUESTIONNAIRE

Dear respondent,

1. The survey is only for study purpose, provided information will not be misused and kept
secret.

2. You are requested to fill the details clearly. Use √ symbol for your approval, any other
symbol may create confusion.

3. We are greatly thankful to all authorized persons to co-operate.

Yours faithfully,
Student of S.K. Patel
Institute of Management
& Computer Studies.
 PERSONAL INFORMATION

1) Surname Name Father’s name

2) Address:

3) Contact no:

4) Age:

Field Information for Distributors:

1)what do you sell?

Pepsi‫۝‬
Cocacola‫۝‬
Both‫۝‬
Others____________________

2)since how many years are you in distribution?

_______________________________________

3)How much quantity do you purchase?

10 to 20 crates‫۝‬
20 to 40 crates‫۝‬
40 to 50 crates‫۝‬
More than 50 crates‫۝‬

4)what is your order cycle?

Everyweek‫۝‬
Every month‫۝‬
Others__________________
5)who manages your inventory ?
Company‫۝‬
You‫۝‬
Others_______________________

6)do you get inventory in good condition?

Yes ‫۝‬
No ‫۝‬

7)do companies marketing personnel helps to solve problem regarding

inventory ?

Yes ‫۝‬
No ‫۝‬

8)which technology do you use to manage inventory?

___________________________________________
___________________________________________

9)what do you provide retailers as point of purchase assessment?

Umbrella‫۝‬
Tent ‫۝‬
Holdings‫۝‬
Paintings‫۝‬
Others__________________

10)Do you know any scheme given to you?

Yes ‫۝‬
No ‫۝‬

11)how do you to come to know about schemes?

________________________________________
Retailers questionnaire
 S.K. PATEL INSTITUTE OF MANAGEMENT &
COMPUTER STUDIES
Sector: 23, GH-6 Road corner, Gandhinagar-382 023
Phone: 079- 23245729 fax: 079-23248119
Website: www.skpatel.org, E-mail:skpinfo@skpatel.org

Respected sir,

We are student of S.K.patel institute of management and computer

studies, we are undertaking a Grand project as a part of our curriculum.We
are carrying a survey on distribution channel of Pepsi and Cocacola . in
Ahmedabad.
We request you to cooperate with us and give response to
questionnaire. The data collected is purely for academic purpose and would
be treated with utmost confidentially.

Thank you .

QUESTIONNAIRE

Dear respondent,

4. The survey is only for study purpose, provided information will not be misused and kept
secret.

5. You are requested to fill the details clearly. Use √ symbol for your approval, any other
symbol may create confusion.

6. We are greatly thankful to all authorized persons to co-operate.

Yours faithfully,
Student of S.K. Patel
Institute of Management
& Computer Studies.
 PERSONAL INFORMATION

5) Surname Name Father’s name

6) Address:

7) Contact no:

8) Age:

Field Information for retailers:

1)What do you sell?

pepsi ‫۝‬ cocacola ‫۝‬
2)do you get cold drink in time?
Yes ‫ ۝‬No ‫۝‬
3)when do distributor come to your shop to give delivery?
Every day ‫ ۝‬everyweek ‫ ۝‬Every month ‫۝‬
4)when do you pay money for delivery?
At delivery ‫ ۝‬Next day ‫۝‬ After one week ‫۝‬

5)how do you inform your order to distributor?

By telephone ‫۝‬ On the day’s delivery time ‫۝‬
Other please specify_______________

6)Do you get delivery as per order?

Yes ‫ ۝‬No ‫۝‬

7)if you do not get delivery as per order,in which cold drink shortage occure?
______________________________________________________________
____________________________________________________________

8)does your ditributior give information about scheames ?

Yes‫ ۝‬No‫۝‬

9)do you know any kind of sceame given to you?

Yes‫ ۝‬No‫۝‬

10)what kind of facility do you have to store colddrink?

Friedge‫۝‬ ice-box‫۝‬
anyother‫۝‬
11)does company provide any advertisement material like umbrellas ,cap
etc.?
Yes‫ ۝‬No‫۝‬

12)if yes do you satisfied with given material?

Yes‫ ۝‬No‫۝‬

13)do you get delivery in good condition?

Yes‫ ۝‬No‫۝‬
14)which brand do you think better ,why?

______________________________________________________________
____________________________________________________________

15) are you satisfied with the distributors in terms of provided point of
purchase assessment ?
Verymuch satisfied‫۝‬
Much satisfied‫۝‬
Satisfied‫۝‬
Not much satisfied‫۝‬
Very much dissatisfied‫۝‬