1. Brand Comparison Strategy between
Pepsi and Coke
GROUP # 2
Karan Bhagatwala : Roll No. 09
Aishwarya Bhavsar : Roll No. 11
Harshit Bhinde : Roll No. 12
Varun Gheewala : Roll No. 33
Sheetal Jangid : Roll No. 47

2. Soft drink Industry in India – An Overview
1. A 50 Billion Rs industry, growing at 6%-7% annually.
2. It employs around 1,25,000 people.
3. Supports growth of industries like
glass, refrigeration, transportation, paper and sugar.
4. Industry contributes over Rs 12 billion to the exchequer and exports
goods worth Rs 2 billion.
5. 91% soft drink sales are made to the lower, middle and upper middle
classes.
Region wise Sales in India Area wise Sales in India
South North Rural
26% 24% 30%
West Urban
32% East 70%
18%

3. Industrial Feasibility
1. Market Growth Rates:
– 2001-02 - 2006-07 : 6.5%
– 2004-05 - 2009-10 : 5.4%
– 2009-10 - 2014-15 : 4.5%
2. Changing Retail Scenario in India helping the Soft drink players to push
their brands.
3. Increased Availability and strong distribution network.
4. Favorable Population demographics of India.
5. Rising consumer focus on health and wellness leading to demand for
health drinks.
6. Untapped Rural Market.

4. Top brands in the Indian Market
Market Share
Overall Market Share:
17%
1. Pepsi Brands: 37% Thums Up
42% Sprite
2. Coke Brands: 60%
17% Pepsi
3. Others: 3% Coke
15% Other Brands
9%
Brand Trust Report Results - 2010
1. Pepsi was ranked 36 / 300
2. Coca – Cola was ranked 60 / 300

5. Comparison between Pepsi & Coke
Sr. No. Pepsi Coca - Cola
1 Brand Image: Brand Image:
1. Sporty 1. Refreshing
2. Youth Centric 2. Family friendly
3. Fashionable & “In” with society 3. Happiness & Well-being
2 Frequently changing logos Frequently changing slogans
3 Focusing on becoming a F & B Focusing on Beverages only
company

6. SWOT Analysis
Strength Weakness Opportunity Threat
• Established • Overdepende • New product • Decline In
name nce on US easy carbonated
• Branding markets penetration drinks(Substi-
• Diversification • Low • Broadening of tutes)
• Vast productivity product base • Intense
distribution • Targets only • International competition
channel young expansion • Potential
customers for • Growing disruption
promotions savory snack due to labour
• Competitor and bottled unrest
Coca Cola- water • Rising cost in
more market raw materials
share and travel
expenses

7. PESTL Analysis
• Regulated by FDA.
Political
• Effect of inflation.
• Restructure sales and marketing.
Economic
• Downsizing.
• Remain in line with cultures.
Social
• Global Brand.
• Social media.
Technological
• Helps to introduce new product.
• Accused of contaminated water.
Legal
• Product testing cost.
Sustainable Competitive Advantage
1. Strong Research and Innovation.
2. Brand Equity & Corporate Reputation.
3. High volume production.
4. Effective manufacturing and distribution systems.

8. Key Concerns & Methodologies
Concern:
Loopholes in Supply Chain: Lack of control over distributors & inadequacy
in monitoring company owned godowns.
Cure:
Revamping the supply chain and enforcing strict control over distributors
and company owned godowns with surprise audits & software based
control.
Concern:
Prevalence of traces of pesticides in Pepsi in India.
Cure:
Invest in bringing in the technology used internationally to India before
India enforces stringent standards.

9. How to increase sales by 10%
Strategy 1: CSR Initiative.
For every PepsiCo product sold, PepsiCo will donate 1% of the MRP to
‘Make A Wish Foundation’ or ‘CRY’ or any other NGO working for the
underprivileged.
Strategy 2: Festive Offer.
Run a campaign during the end of October wherein customer can win a
chance to celebrate Diwali with Ranbir Kapoor who is the current brand
ambassador.
Strategy 3: Price Reduction.
Reduce the price & earn on basis of volume of sales.

10. Net Revenues – 5 Year Analysis
All statistics are in Million Dollars
PARTICULARS 2011 2010 2009 2008 2007
FLNA 13,322 12,573 13,224 12,507 11,586
QFNA 2,656 2,656 1,884 1,902 1,860
LAF 7,156 6,315 5,703 5,895 4,872
PAB 22,418 20,401 10,116 10,937 11,070
EUROPE 13,560 9,602 6,727 6,891 5,896
AMEA 7,392 6,291 5,578 5,119 4,170
TOTAL 66,504 57,838 43,232 43,251 39,474

11. Operating Profit – 5 Year Analysis
All statistics are in Million Dollars
PARTICULARS 2011 2010 2009 2008 2007
FLNA 3,621 3,376 3,105 2,959 2,845
QFNA 797 741 781 582 568
LAF 1,078 1,004 904 897 714
PAB 3,273 2,776 2,172 2,026 2,487
EUROPE 1,210 1,054 948 910 855
AMEA 887 708 700 592 466
TOTAL 10,886 9,659 8,610 6,959 7,182

12. The Way Forward
1. Focus on Bottling & Logistics operations.
2. Pepsico should introduce an arena of products present in other global
markets.
3. Maintain the stock price.
4. Overemphasis on “Good For You” products is not financially beneficial.
5. Maintain the global position.