1. 1
A
Comparative study
On
“Pepsi co vs. Coca Cola Company”
In Partial Fulfillment of MBA Program Semester - 4
Noble Engineering College, Junagadh
Submitted By: Guided By:
Name & Enroll No: Prof. Asif Memdani
HARSHAD TRADA. (127380592055)
Gujarat Technological University
(Academic Year: 2012-2014)
2. INTRODUCTION OF COMPANY
1. PEPSI CO :-
We are a leading global food and beverage company with
throughout the world. Through our operations, authorized bottlers, contract
partners, we make, market, sell and
beverages, serving customers and consumers in more
monitors a variety of key indicators to
indicators include market share,
earnings per share and return on invested capital.
During 2012 we undertook a number of significant
success. These initiatives included increasing investment in our iconic global
innovation program and launching
productivity program that resulted in over $1 billion in savings
these initiatives
While returning $6.5 billion to shareholders through repurchases
As a company doing business in
been more vital to our success. Being as diverse as our consumer
to meet their needs. A safe and inclusive workplace
engagement, fosters creativity and fuels
PepsiCo both supports and benefits from
We are committed to increasing
development initiatives around the world. In our Asia,
percentage of newly hired or promoted executives who are women exceeds 50 percent.
enable progress: In Saudi Arabia, we have
enabling women to work and advance. Our Saudi team
management and front-line roles.
make up each of us: personality,
religion, gender, gender identity, sexual
status, or other differences.
INTRODUCTION OF COMPANY
food and beverage company with brands that are respected household names
world. Through our operations, authorized bottlers, contract
partners, we make, market, sell and distribute a wide variety of convenient and enj
beverages, serving customers and consumers in more than 200 countries and territories.
monitors a variety of key indicators to evaluate our business results and financial condition. These
indicators include market share, volume, net revenue, operating profit, management operating cash flow,
share and return on invested capital.
During 2012 we undertook a number of significant initiatives that we believe will position us for future
ncluded increasing investment in our iconic global
innovation program and launching new products like Pepsi Next; and implementing a multi
productivity program that resulted in over $1 billion in savings last year alone. We suc
returning $6.5 billion to shareholders through repurchases and dividends during 2012.
As a company doing business in more than 200 countries and territories, diversity
Being as diverse as our consumer enables us to
safe and inclusive workplace that values different perspectives
fosters creativity and fuels innovation. The vignettes below offer but
supports and benefits from diversity and inclusion.
We are committed to increasing the number of women leaders within PepsiCo through recruiting
d the world. In our Asia, Middle East and Africa sector, for
hired or promoted executives who are women exceeds 50 percent.
In Saudi Arabia, we have constructed workplaces that respect loc
work and advance. Our Saudi team includes 25 women hired in 2011
line roles. At PepsiCo, we define diversity as all the unique characteristics
make up each of us: personality, lifestyle, thought processes, work experience, ethnicity, race,
identity, sexual orientation, marital status, age, national origin,
INTRODUCTION OF COMPANY
brands that are respected household names
world. Through our operations, authorized bottlers, contract manufacturers and other
distribute a wide variety of convenient and enjoyable foods and
than 200 countries and territories. Our management
evaluate our business results and financial condition. These
profit, management operating cash flow,
we believe will position us for future
ncluded increasing investment in our iconic global brands; stepping up our
new products like Pepsi Next; and implementing a multi-year
last year alone. We successfully completed
and dividends during 2012.
territories, diversity and inclusion has never
us to understand, firsthand, how
that values different perspectives builds employee
The vignettes below offer but a few examples of how
within PepsiCo through recruiting and
Middle East and Africa sector, for example, the
hired or promoted executives who are women exceeds 50 percent. Tailored programs
workplaces that respect local customs while
includes 25 women hired in 2011 and 2012 in both
as all the unique characteristics that
work experience, ethnicity, race, color,
status, age, national origin, disability, veteran
3. 3
2. COCA COLA :-
The Coca-Cola Company is the world’s largest beverage company. We own or license and market more
than 500 nonalcoholic beverage brands, primarily sparkling beverages but also a variety of still beverages
such as waters, enhanced waters, juices and juice drinks, ready-to-drink teas and coffees, and energy and
sports drinks. We own and market four of the world’s top five nonalcoholic sparkling beverage brands:
Coca-Cola, Diet Coke, Fanta and Sprite. Finished beverage products bearing our trademarks, sold in the
United States since 1886, are now sold in more than 200 countries. We make our branded beverage
products available to consumers throughout the world through our network of Company-owned or -
controlled bottling and distribution operations as well as independent bottling partners, distributors,
wholesalers and retailers — the world’s largest beverage distribution system. Beverages bearing
trademarks owned by or licensed to us account for 1.9 billion of the approximately 57 billion beverage
servings of all types consumed worldwide every day.
We believe our success depends on our ability to connect with consumers by providing them with a wide
variety of options to meet their desires, needs and lifestyles. Our success further depends on the ability of
our people to execute effectively, every day. Our goal is to use our Company’s assets — our brands,
financial strength, unrivaled distribution system, global reach, and the talent and strong commitment of our
management and associates — to become more competitive and to accelerate growth in a manner that
creates value for our shareowners. We were incorporated in September 1919 under the laws of the State of
Delaware and succeeded to the business of a Georgia corporation with the same name that had been
organized in 1892.
On October 2, 2010, we acquired the former North America business of Coca-Cola Enterprises Inc.
(‘‘CCE’’), one of our major bottlers, consisting of CCE’s production, sales and distribution operations in
the United States, Canada, the British Virgin Islands, the United States Virgin Islands and the Cayman
Islands, and a substantial majority of CCE’s corporate segment. CCE shareowners other than the Company
exchanged their CCE common stock for common stock in a new entity named Coca-Cola Enterprises, Inc.
(‘‘New CCE’’), which, after the closing of the transaction, continued to hold the European operations that
had been held by CCE prior to the acquisition. The Company does not have any ownership interest in New
CCE. Upon completion of
the CCE transaction, we combined the management of the acquired North America business with the
management of our existing foodservice business; Minute Maid and Odwalla juice businesses; North
America supply chain operations; and Company-owned bottling operations in Philadelphia, Pennsylvania,
into a unified bottling and customer service organization called Coca-Cola Refreshments (‘‘CCR’’). In
addition, we reshaped our remaining Coca-Cola North America operations into an organization that
primarily provides franchise leadership and consumer marketing and innovation for the North American
market. As a result of the transaction and related reorganization, our North American businesses operate as
aligned and agile organizations with distinct capabilities, responsibilities and strengths.
4. BRAND NAME & LOGO
PEPSI COCA COLA
TAGLINE
PEPSI: - COCA COLA
“Piyo Josh Mein, Jiyo Hosh Mein” “CHOTI HO YA BADI
HAR
KHUSI ME COCA
COLA”
URL
www.pepsiindia.co.in/ www.coca-colaindia.com
SLOGAN
“Pepsi is okay.” “Sign of good taste.”
5. 5
Brand ambassador
1. PEPSI CO :-
RANBIR KAPPOR
Brand Ambassador Ranbir Kapoor Kicks Off Internship with IPL 7 as
@ThatPepsiIntern
Actor Ranbir Kapoor joins as an intern, as the country is soon going to be gripped with cricket fever. The
auction for the 7th season of the Indian Premier League (IPL) has commenced today with some of the
biggest global and Indian players being sold to the IPL team owners, while many others remain unsold so
far. While the auction is being streamed live, many of the media sites are also running a live coverage,
together with Twitter users. Twitter India trends have been occupied by the IPL auction with hashtags
#IPLAuction, #PepsiIPLAuction tending at the top followed by intermittent trends made by cricketers and
IPL teams.
But amidst all this bidding in crores of rupees, what the IPL 7 title sponsors, Pepsi India are doing on
Twitter is fun to watch. The beverage brand is running a fun connect with its fans through
@ThatPepsiIntern on Twitter. Brand ambassador and actor Ranbir Kapoor has joined Pepsi as an intern to
bring all the thrill and action from Pepsi IPL 2014 to cricket fans.
@ThatPepsiIntern for IPL 7
And, Ranbir as @ThatPepsiIntern is already on the job today at the IPL auctions. From bringing the scoop
at the player auctions to hanging with team owners, it appears that Ranbir is all set for a new milestone in
his career. Ever since the auction has started, Ranbir has been tweeting about his new job and what’s
happening at the event. Additionally, one can also ask him questions using the hashtags #Ask That Pepsi
Intern and Ranbir will happily oblige. Some of the special questions have received Vine video responses
too!
6. 2. COCA-COLA:-
Deepika Padukone & Farhan Akhtar Becomes brand ambassador of Coca-
Cola
Brand Endorsements is emerged as new concept developed in Bollywood industries now a days and
Bollywood stars not only compete with each other in films but they are in race to get big brands
endorsements for him / her is flourishing now a days. Most admired actresses in 2013 was none other than
Deepika Padukone and for that one of the leading cola company Coca Cola signs Deepika Padukone as
new face for the company for India operation.
Bollywood star Deepika Padukone soon shall become the third celebrity on the face of the Earth to endorse
PepsiCo and Coca-Cola both. The other two celebrities are the perfectionist Amir Khan and the first bahu
of Bollywood Aishwarya Rai Bachchan. Long-legged Deeps is the next brand ambassador of Coca-Cola,
reported Times of India on Monday. T he Cola company aims to revive its image as it ‘continues to lag
behind its sister brand T hums Up and rival Pepsi’ in the soft drink market in India, the English daily read.
Padukone reportedly is to be paid a little less than 4 crore annually for endorsing Coca-Cola. As per the
report, Deeps shall team up with her Kartik Calling Kartik co-star Farhan Akhtar to promote the soft drink.
T he biggest rival of Coca-Cola, PepsiCo India, is endorsed by Deepika’s old love flame Ranbir Kapoor.
The Pepsi Lady is none other than Piggy Chops, Priyanka Chopra. Interestingly, Deepika and Ranbir have
appeared in a same advertisement to promote PepsiCo.
However, as the duo’s love has worn off, seemingly Deepika has decided to move on with her choice of
brands as well. Does the queen reigning million young hearts wishes to send out signals to her former beau
that she is as good a rival as good she is a lover?
T he topic is pretty prickly and itchy! Let us not pry too much, for the two have proven their
professionalism by appearing in one of the biggest Bollywood baggers ‘Y eh Jawani Hai Deewani’ post
their breakup. However, once friends could turn foes professionally at least, keeping up healthy
competition. Post Deepika signs the Cola agreement; she shall not be able to promote another drink label
round the globe till her contract with Coca-Cola is not over.
7. 7
SWOT Analysis
1. PepsiCo company :-
PepsiCo
Parent Company PepsiCo Ltd
Category Beverages and foods
Sector Food and Beverages
Tagline/ Slogan
Live for Now; Every Generation Refreshes The World;
Something for Everyone; Yeh dil mangey more
USP
One of the most popular global brands in the foods and
beverages sector targeting the youth
STP
Segment Middle and upper middle class people
Target Group The younger generation (15 to 35 years of age)
Positioning
As a food and beverage brand with multiple products
catering to the youth
Product Portfolio
Brands
1. Pepsi 2. Nimbooz
3. Diet Pepsi 4. 7UP
5. Mirinda 6. Slice
7. Aquafina Water 8. Tropicana
9. Lays 10.Gatorade
SWOT Analysis
Strength
1.One of the most popular and globally recognised brands
in foods and beverages
2. One of the most diversified product portfolio
3. Popular subsidiary brands like Frito Lay, Gatorade,
Pepsi, Quaker, Tropicana, Yum! Brands, etc.
4. Global reach with presence in over 200 countries
8. 5.An employee strength of around 300,000 people
6. CSR through PepsiCo Foundation, which works in the
sector of education, health, water conservation, education
etc.
7. Pepsi Refresh Project that funds new ideas or ventures
that have the potential to benefit the society
8.Strong and efficient supply chain network, ensuring that
all the products are available even in the most remote
places
9. Excellent branding and advertising with global
celebrity as brand ambassadors
10. Tie-ups, sponsorships with global sports events, music
concerts, etc
Weakness
1.Strong competition in the aerated drinks segment from
Coca Cola means high brand switching
2. Cases against products have been blown out of
proportion, thereby affecting brand image
Opportunity
1.Increase penetration into developing countries and
capture their market
2.Increase its product portfolio by acquisition of other
brands
3.To expand the Yum! Brands eatery in untapped
countries and regions like tier 2 cities
4.To improve its brand image by involving in more CSR
activities to benefit the locals
Threats
1.Health consciousness amongst people can take a toll on
its aerated drinks and snacks food markets
2.Compliance with different government regulations and
norms in different countries
3.Inlation, economic slowdown and instability causes
decline in the purchasing power of consumers
4.Strong competition from other brands in each segment
of its operation
Competition
Competitors
1.Coca-Cola Company
2.Kraft Foods
3.Dr. Pepper Snapple
9. 9
2. Coca Cola Company:-
Coca Cola Company
Parent Company Coca Cola Ltd
Category Beverages and foods
Sector Food and Beverages
Tagline/ Slogan
Open happiness; Twist The Cap To Refreshment; Life
Begins Here; The Coke Side of Life; Brrrr
USP
The number one beverage brand in terms of sales with
more than 500 products at offer
STP
Segment Anyone who needs a beverage for any occasion
Target Group All age groups, from kids to adults
Positioning A beverage brand for the entire family
Product Portfolio
Brands
1. Coca Cola 2. Limca
3. Diet Coke 4. Sprite
5. Fanta 6.Thums Up
7. Maaza 8. Kinley Water
9. Minute Maid
SWOT Analysis
Strength 1.The number one beverages brand in terms of reach and
10. sales
2. Popular subsidiary brands like Coca Cola, Fanta,
Kinley, Limca, Maaza, Minute Maid, etc.
3. Global reach with presence in over 200 countries
4.More than 500 brands on offer
5.An employee strength of around 1,50,000 people
globally
6.Strong and efficient supply chain network, ensuring that
all the products are available even in the most remote
places
7.Strong financial condition
8.Strong brand recall through advertising and marketing
by associating with celebrity brand amassadors
9.CSR activities in the field of water conservation and
recycling, education, health etc.
10. Effective and efficient packaging technique giving
emphasis on recycling and reusing
11. Long association with international sports events,
sponsorships etc
Weakness
1.The presence of traces of pesticides in the cola
beverages have caused damage to the brand image
2.Strong competition in the aerated drinks segment from
Pepsi Co means constant fight over market share
3.No presence in the snacks and food industry
Opportunity
1.Increase its reachin untapped countries and market
2.Market and popularise the less known products
3.Acquire other companies
4.Diversify its product portfolio by entering into snacks
industry to compete with Pepsi Co
11. 11
Threats
1.Health consciousness amongst people
2.Difficulty in complying with different government
regulations and norms in different countries
3.Inlation, economic slowdown and instability
4.Strong competition
Competition
Competitors
1.Pepsi Co
2.Dr. Pepper Snapple
12. BCG Matrix
1. Pepsi Co Company: -
In BCG matrix Pepsi co is in star stage high market growth & high market share.
13. 13
2. Coca cola company :-
IN COCACOLA PRODUCT THUMS UP & MAZA ARE IN STAR, FANTA & SPRITE IS IN
QUESTION MARK , LIMCA & COCACOLA IS IN CASH COW STAGE AND DIET COKE &
MINUTE MAID IS IN DOG STAGE.
14. PLC STAGE OF THE COMPANY
1.PEPSI CO COMPANY :-
In these stages of plc Pepsi co is in maturity stage in India.
15. 15
2. COCA COLA COMPANY:-
In plc stage the Coca-Cola Company is in maturity stage.
16. PRODUCT PORT FOLLIO OF COMPANY
1. PEPSI CO :-
Pepsi Co India’s expansive portfolio includes iconic refreshment
beverages Pepsi, 7UP, Nimbooz, Mirinda, Slice and Mountain Dew, in addition to low-calorie options
such as Diet Pepsi, hydrating and nutritional beverages such as Aquafina drinking water, isotonic sports
drink Gatorade and fruit juices such as Tropicana and Tropicana 100%.
A. Pepsi:-
Pepsi is a hundred-year-old brand loved by over 200 million people worldwide. The largest single
selling soft drink brand in India, Pepsi is ubiquitous on just about every social occasion. Youngistaan
loves it. 200 million people worldwide love it. But what has made Pepsi the single largest selling soft
drink brand in India is actually a formula concocted a century ago in a faraway continent.
1886, the US. Caleb Bradman, a man with a plan formulated a blockbuster of a digestive drink and
decided to call it Brad’s drink. The potion was to become Pepsi Cola in 1898, and eventually, Pepsi in
1903. Since its inception, Pepsi has always been at the forefront of the beverage industry and has come
up with revolutionary concepts such as Diet Pepsi, 2l bottles, recyclable plastic cola bottles and the
enviable My Can.
7 UP:-
7UP, the refreshing clear drink with a natural lemon and lime flavour was created in 1929. 7UP was
launched in India in 1990 and its international mascot Fido Dido was used for advertising in 1992 to
position the brand as a cool drink for youngsters. Fido became an instant hit with his trendy look, laid-
back attitude and unconventional take on life. During the brand’s early years in India, 7UP gained
market leader status in the lemon lime category by being one of the first to be nationally distributed
besides being marketed as a healthier alternative to other soft drinks.
Aquafina:-
Aquafina was first launched in the US in 1994. With its unique purification system and great taste,
Aquafina soon became the bestselling brand in the country.
In India, Aquafina’s journey began with its launch in Bombay in 1999 and it was rolled out nationally
by 2000. On the strength of its brand appeal and distribution, Aquafina has become one of India’s
leading brands of bottled water in a relatively short span of time.
17. 17
Duke’s Legacy:-
Dukes legacy Founded in 1889 by Dinshwaji Pandole, Duke’s is a brand that is seeped in Mumbai’s
rich history. It was in many ways the country’s first aerated soft drink and a pioneer on many fronts.
Many a generations have grown up enjoying the refreshing taste of Duke’s. Thus when PepsiCo India
brought this brand in 1994, it also inherited Duke’s rich Mumbai legacy. While the Lemonade flavour
has refreshed the consumers ever since, in September 2011 some more flavors of Duke’s , the delicious
Raspberry and the sugary sweet Ice-cream soda were relaunched. And with it was launched Duke’s
Masala Soda, with its strong local flavor that has the consumers wanting for more..
Gatorade:-
Gatorade, the World’s No.1 Sports Drink, was born on the field of sport! Gatorade was launched in
India in 2004 and over the years, has become an integral part of the kitbags of many leading
sportspersons. Gatorade has been tried and endorsed in India by the top sports stars and professionals,
including Sachin Tendulkar, Irfan Pathan, Md. Kaif, S. Sreesanth Ramji Srinivasan and Javagal
Srinath.
Mirinda:-
Mirinda has always stood for great bold taste that unleashes uninhibited fun. Taking the promise
forward, Mirinda launched two new exciting flavors- Orange Mango and Orange Masala which appeal
to the Indian palette. While Orange Mango is the perfect mix of the sweet candy taste of mango flavor
and the tanginess of original Mirinda Orange; Orange Masala tickles the taste buds with a hint of fruit
masala flavor added to Mirinda Orange. The launch was supported by a robust 360-degree campaign
including outdoor, online and a consumer engagement programmed to bring alive the taste experience.
Mountain Dew :-
The main formula of Mountain Dew was invented in Virginia. The drink was named and first marketed
in Johnson City, Tennessee and Knoxville, Tennessee in 1948.
In India, Mountain Dew set the soft drink category ablaze in 2003 with its iconic launch campaign
‘Cheetah Bhi Peeta Hai’.
18. Nimbooz:-
Nimbooz is a great tasting product. It has capitalized on the existing familiarity with and high
consumption of unpackaged / home-made nimbu pani. It has remained true to its authentic Indian
Identity by using the traditional Matka (Earthen Pot) and Squeezer in the manufacturing process. The
product is available in three convenient formats, 350ml PET, 200ml RGB and 500ml PET at the
remarkable price points of Rs 18, Rs 10 and Rs 25 respectively.
Slice:-
Slice was launched in India in 1993 as a refreshing mango drink and quickly went on to become a
leading player in the category.
In 2008, Slice was relaunched with a winning product formulation that made consumers fall in love
with its taste. With new pack graphics and clutter-breaking advertising, Slice has built a powerful
appeal.
Tropicana:-
Tropicana was founded in Bradenton, Florida, USA, in 1947. It is now enjoyed almost everywhere in
the world. Carefully nurtured for over 50 years, Tropicana has matured into one of the most respected
beverage brands. Tropicana is the #1 brand in packaged 100% Juice* in the world in 2011 in off-trade
volume. It is today available in 63 countries. Since 1998, Tropicana has been owned by PepsiCo, Inc.
Tropicana Premium Gold was re-launched as Tropicana 100% in 2008.
19. 19
2. COCA COLA :-
COCA - COLA:-
In India, Coca-Cola was the leading soft-drink till 1977 when the government policies necessitated its
departure. Coca-Cola made its return to the country in 1993 and made significant investments to ensure
that the beverage is available to more and more people, even in the remote and inaccessible parts of the
nation.
Thums Up:-
TODAY IT IS THE LARGEST SELLING SOFT DRINK BRAND IN INDIA.
Originally introduced in 1977, Thums Up was acquired by The Coca-Cola Company in 1993
Diet coke:-
20. WORLD'S THIRD LARGEST SELLING SOFT DRINK
Launched in 1982 in America, Diet Coke (also known as Coca-Cola light in some countries) has become
the world's third largest soft drink.
Sprite:-
SPRITE A 'CLEAN LIME' DRINK Since its inception is 1999, Sprite has not only established itself
as a brand which successfully boasts it's 'cut-thru' perspective with an authentic, edgy, irreverent, urban
and straight forward style, but has also achieved status of an undisputed youth 'badge' brand. Today
Sprite is one of the top two sparkling soft drinks in the country.
Fanta:-
FANTA THE 'ORANGE' DRINK
Fanta entered the Indian market in the year 1993. Perceived as a fun youth brand, Fanta stands for its
vibrant color, tempting taste and tingling bubbles that not just uplifts feelings but also helps free spirit
thus encouraging one to indulge in the moment.
LIMCA:-
LIMCA'S FRESHNESS IS LIKE NO OTHER- 'LIME N LEMONI'
Born in 1971, Limca has remained unchallenged as the No.1 Sparkling Drink in the Cloudy lemon
Segment. The success formula is the sharp fizz and lemoni bite combined with the single minded
proposition of the brand as the provider of "Freshess.
MAAZA:-
MAAZA THE WHOLESOME FAMILY FUN
Introduced in 1970s, Maaza has today come to symbolize the very spirit of mangoes. Universally loved
for its taste, color, thickness and wholesome properties, Maaza is the mango lover's first choice.
MINIUTE MAID PULPY ORANGE:-
Minute Maid – one of the world's largest juice and juice drink brands. The history of the Minute Maid
brand goes as far back as 1945 when the Florida Food Cooperation developed orange juice powder.
They branded it Minute Maid, a name connoting the convenience and the ease of preparation (in a
minute).
MINIUTE MAID NIMBU FRESH:-
Launched first in South of India in January 2010, Minute Maid Nimbu Fresh started refreshing the
whole of India by April 2010.