A project report on competition between pepsi co and coca cola brands

Competition Between PepsiCo and Coca Cola brands

CONTENTS

- Executive Summary

- Introduction

- Literature review

- Purpose of the study

- Scope of the study

- Objectives

EXECUTIVE SUMMARY

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The soft drinks and beverages can be said to be as old as a civilization of man. Soft

drinks are known as refresher and man need to refresh him self in the time of his thirst, fatigue &

dullness.

The conventional Indian soft drink pattern includes Lemon juice. Butter milk, lassi etc.

With entry of British India got westernized and synthetic soft drinks, which were part of the

dominant life style of the western world came flooding into India.

The present Corporate Exposure and Learning was done in Nectar Beverages Pvt. .Ltd,

which is Franchise Owned Bottling Operation (FOBO) division?

In this report

Section 1: Deals with Industry profile, Company profile and Product profile of the company.

Section 2: Deals with Competitive position and Consumption pattern of consumer on lemon

flavour soft drinks in Belgaum city.

Research is done through personal interview with questionnaire for both retailer

and consumers and found that 7UP has good market potential as compared to Sprite and

consumers prefer this brand because of taste and refreshing and they expect some more improved

taste so that it can compete more with Sprite.

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to the water, the result is a great taste, but slightly boring beverage. Now, the bottler

brings it to life by adding carbon dioxide, a tasteless, odorless, natural gas, with a machine called

a carbonator.

The government has adopted liberalized policies for the soft drink trade to give the

industry a boost and promote the Indian brands internationally. Although the import

and manufacture of international

Introduction

Retailer and Customer Survey is to be done for comparative study between 7UP &

Sprit. The areas selected in Belgaum city are Vadagaon,, Hindwadi, Deshmukh Road, Tilakwadi

,Camp area, Kirloskar Road, College road, Neharu Nagar, Bustand Area, Shivbasava Nagar.

Necessity is the mother of invention. Pepsi Co. was founded in 1965. Late Shri

Modhubab Timblo, prominent industriously & business entrepreneur of Goa, found that the soft

drinks in northern part of Karnataka are being supplied from out side the State. Hence he found

the need of producing soft drinks for people of Karnataka from the land of Karnataka and from

the water of Karnataka itself. Accordingly the dream of modern manufacturing plant came into

reality in 1984 and Nectar beverages Pvt.Ltd., a beverage plant was commissioned on the our

skirts of Dharwad, on the N.H.No.4.

Nectar Beverages, belongs to big house of Goa, under the banner of Fomento Group.

The group deals in Hotel, Soft drinks, and 100% E.O. Us of Mining in Goa, Karnataka &

Andhra, thus believes in professionalism and promoting ownership among its entire people. All
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employees work as partners in progress and growth of the company. Nectar Beverages is headed

by Mr. Prashant Timblo, the ideal son of the illustrious father late Mr. Modhubab.

Nectar Beverages has carved a special niche in the map of soft drinks in the

country thus enjoys the highest reputation in the soft drinks market of quality products

of international brand such as Pepsi, 7 Up, Mirinda (Orange), Mirinda (Lemon), Evervess Soda,

Slice, & Mountain Dew etc. Utmost care is being taken from the beginning of collection of the

raw water till it turns into a sophisticated flavour drink.

Literature Review

PepsiCo is a world leader in convenient foods and beverages, with 2005 revenues of

more than $29 billion and 153,000 employees. The company consists of Frito-Lay North

America, PepsiCo Beverages North America, PepsiCo International and Quaker Foods North

America. PepsiCo brands are available in nearly 200 countries and territories and generate sales

at the retail level of about $78 billion.

Many of PepsiCo's brand names are more than 100-years-old, but the corporation is

relatively young. PepsiCo was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay.

Tropicana was acquired in 1998 and PepsiCo merged with The Quaker Oats Company, including

Gatorade, in 2001.

PepsiCo offers product choices to meet a broad variety of needs and preference -- from

fun-for-you items to product choices that contribute to healthier lifestyles.

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PepsiCo’s mission is “To be the world's premier consumer Products Company focused on

convenient foods and beverages. We seek to produce healthy financial rewards to investors as

we provide opportunities for growth and enrichment to our employees, our business partners and

the communities in which we operate. And in everything we do, we strive for honesty, fairness

and integrity.”

SHAREHOLDERS

PepsiCo (symbol: PEP) shares are traded principally on the New York Stock Exchange in

the United States. The company is also listed on the Amsterdam, Chicago, Swiss and Tokyo

stock exchanges. PepsiCo has consistently paid cash dividends since the corporation was

founded.

CORPORATE CITIZENSHIP

At PepsiCo, we believe that as a corporate citizen, we have a responsibility to contribute

to the quality of life in our communities. This philosophy is expressed in our sustainability

vision which states: “PepsiCo’s responsibility is to continually improve all aspects of the world

in which we operate – environment, social, economic – creating a better tomorrow than today.

Our vision is put into action through programs and a focus on environmental stewardship,

activities to benefit society, and a commitment to build shareholder value by making PepsiCo a

truly sustainable company.

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PepsiCo’s beverage business was founded 1898 by Caleb Bradham, a New Bern, North

Carolina druggist, who first formulated Pepsi-Cola.

Today, Brand Pepsi is part of a portfolio of beverage brands that includes carbonated soft

drinks, juices and juice drinks, ready-to-drink teas and coffee drinks, isotonic sports drinks,

bottled water and enhanced waters. PBNA has well known brand such as Mountain Dew, Diet

Pepsi, Gatorade, Tropicana Pure Premium, Aquafina water, Sierra Mist, Mug, Tropicana juice

drinks, Propel, SoBe, Slice, Dole, Tropicana Twister and Tropicana Season’s Best.

PBNA manufactures and sells concentrate for some of these brands to licensed bottlers,

who sell the branded products to independent distributors and retailers. PBNA provides

advertising, marketing, sales and promotional support for its brands. This includes some of the

world's best-loved and most-recognized advertising.

In 1992 PBNA formed a partnership with Thomas J. Lipton Co. to selling ready-to-drink

tea brands in the United States. Pepsi-Cola also markets Frappuccino ready-to-drink coffee

through a partnership with Starbucks.

Anthony Rossi as a Florida fruit packaging business founded Tropicana in 1947. In 1954

Rossi pioneered a pasteurization process for orange juice. For the first time, consumers could

enjoy the fresh taste of pure not-from-concentrate 100% Florida orange juice in a ready-to-serve

package. The juice, Tropicana Pure Premium, became the company’s flagship product. PepsiCo

acquired Tropicana, including the Dole juice business, in August 1998.

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SoBe became a part of PBNA in 2001. SoBe manufactures and markets an innovative

line of beverages including fruit blends, energy drinks, dairy-based drinks, exotic teas and other

beverages with herbal ingredients.

Gatorade thirst quencher sport drink was acquired by The Quaker Oats Company in 1983

and became a part of PepsiCo with the merger in 2001. Gatorade is the first isotonic sports drink.

Created in 1965 by researchers at the University of Florida for the school's football team, "The

Gators," Gatorade is now the world's leading sport's drink.

PepsiCo Beverages North America includes the United States and Canada.

PEPSICO INTERNATIONAL

Pepsi-Cola began selling its products outside the United States and Canada in the mid-

1930s, opening in the United Kingdom in 1936. Operations grew rapidly beginning in the 1950s.

Today, PepsiCo beverages are available in more than 170 countries and territories. Brands

include Aquafina, Gatorade and Tropicana.

In addition to brands marketed in the United States, PepsiCo International brands include

Mirinda, Seven-Up and many local brands.

PepsiCo began its international snack food operations in 1966. Today, products are available in

nearly 170 countries. Often PepsiCo snack food products are known by local names. These

names include Gamesa and Sabritas in Mexico, Walkers in the United Kingdom, Simths in

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Australia, Matutano in Spain, Elma Chips in Brazil, and others. The company markets Frito-Lay

brands on a global level, and introduces unique products for local tastes.

Statement of the Problem

As there is neck to neck competition between PepsiCo and Coca Cola brands the

situation demands a market analysis through Retailer and Customer which gives an over view of

the market in quantitative terms. The areas selected in Belgaum city are Vadagaon,, Hindwadi,

Deshmukh Road, Tilakwadi ,Camp area, Kirloskar Road, College road, Neharu Nagar, Bustand

Area, Shivbasava Nagar.

Statement of the problem is to know the competitive position of 7UP (Pepsi) with

Sprite (coca cola ) and consumption pattern of Lemon flavour soft drink of consumers and also

to study Retailers expectation. Dealers are visiting to outlets 3 – 4 time every week, or depends

upon the area. The company has to know the demands of the customers and their preferred

flavour brand it is done through by frequent visiting of Retailer, then came to know the needs of

the customer.

This survey covers all the dimensions that dealers consider while carrying

out their business. The aim of the survey was to visit the outlets in a particular sub route and get

as much information as possible.

Purpose of the Study

The main purpose of the survey was to visit the outlets in a particular sub route and get as

much information as possible. To know the competitive position of 7UP (Pepsi) with Sprite

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(Coca cola) and consumption pattern lemon flavour soft drink of consumer the situation demands

a market analysis through survey which gives an over view of the market in quantitative terms.

The Indian Carbonated Beverage Industry is a very dynamic industry. The soft drinks are

the life style brands and are closely related with the consumer. The passion for cricket in the

country makes it unique market. The main ingredients of soft drinks are water, sugar, added

flavour, and carbonated gas. Though some channels like Bar and Restaurants run business

throughout year, for other channels the peak season is between February to June

Scope of the Study

The market survey for comparative study between 7UP (Pepsi) & Sprite

(Coca Cola) is doing in Belgaum city. The scope of study (survey) areas selected in Belgaum

city are Vadagaon,, Hindwadi, Deshmukh Road, Tilakwadi ,Camp area, Kirloskar Road, College

road, Neharu Nagar, Bustand Area, Shivbasava Nagar.

Dealers they will divide these areas depending upon their requirements. PepsiCo

is a world leader in convenient foods and beverages, with 2005 revenues of more than $29

billion and 153,000 employees. The company consists of Frito-Lay North America, PepsiCo

Beverages North America, PepsiCo International and Quaker Foods North America. PepsiCo

brands are available in nearly 200 countries and territories and generate sales at the retail level of

about $78 billion.

Many of PepsiCo's brand names are more than 100-years-old, but the

corporation is relatively young. PepsiCo was founded in 1965 through the merger of

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Pepsi-Cola and Frito-Lay. Tropicana was acquired in 1998 and PepsiCo merged with

The Quaker Oats Company, including Gatorade, in 2001.

Objectives:

1. To study the competitive position of 7UP with Sprite

2. To study retailer expectation.

3. To study consumption pattern of the consumer

4. To know the most preferred lemon flavour brand

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CONTENTS

- Organization profile

- Organization chart

- Sampling

- Research Design

- Data collection methods

- Measuring tools

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ORGANIZATION PROFILE

Necessity is the mother of invention. . Late Shri Modhubab Timblo, prominent

industriously & business entrepreneur of Goa, found that the soft drinks in northern part of

Karnataka are being supplied from out side the State. Hence he found the need of producing soft

drinks for people of Karnataka from the land of Karnataka and from the water of Karnataka

itself. Accordingly the dream of modern manufacturing plant came into reality in 1984 and

Nectar beverages Pvt.Ltd., a beverage plant was commissioned on the our skirts of Dharwad, on

the N.H.No.4.

Pepsi Co was founded in 1965. The CEO of Pepsi Co. is Mr. Neel Buhr and CEO of

Pepsi India is Mr. Raju Bakshi and CFO is Ms. Indra Noori. The employees’ strength is

1,53,000 and it operates in around 200 countries.

MISSION:

“We are committed to produce & deliver top quality product to our consumer. To be the

World’s Premier Consumer products focused on convenient foods and beverages. In every thing

we do we strive for honesty, fairness and integrity”.

• To achieve this every batch of incoming raw materials are checked for quality by our

Quality Assurance Department.

• We use only high grade sugar

• Apart from this, on line & final product checks are carried out at regular intervals.

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• We purchase raw materials only from approved sources, approved by independent

laboratories of internal repute.

• The entire range of equipments is made out of superior grade Stainless Steel Material.

• We give special attention to

o Personnel Hygiene & Sanitation

o House Keeping

o Good Manufacturing Process

o Special attention is also given to keep the Factory Surroundings Clean & Green

by growing Lawn

NBPL:

Nectar Beverages Pvt. Ltd, Dharwad is a franchisee of Pepsi Co. Late Shri Madhubab

Timblo, Prominent Industrialist and business entrepreneur of Goa founded it in 1984.

Nectar Beverages belongs to big house of Goa, under the banner of Fomento Group. The

group deals in Hotel, Soft drinks and 100% F.O.Us of Mining in Goa, Karnataka and Andhra.

Mr. Prashant Timblo heads it, the idea son of the illustrious father late Mr. Madhubab.

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Nectar Beverages has carved a special niche in the map of softdrnks in the country. Thus

enjoys the highest reputation in the soft drinks market for quality products of international

brand such as Pepsi, 7Up, Mirinda (orange), Mirinda(lemon), Everless Soda, Slice etc.

utmost care is being taken from the beginning of collection of the raw water till it

turns into a sophisticated flavour drink.

MARKETING ENVIRONMENTAL AUDIT

AMCRO ENVIRONMENT:

I. Demographic:

• Age: The Indian population has >50% people between the age group of 12-26

which is an opportunity to the company.

• Family size: Increase in Nuclear families acts as an opportunity to the

company.

• Family Life Cycle: Increase in number of DINK’s (Dual Income No Kids) is

also an opportunity.

• Gender: Doesn’t make any difference as such.

• Income: Plays a major role

• Occupation: Affects the buying behavior

• Education: Students are very potential customers.

II. Economic:

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Price of the product and the credit period play a major part in running the

business.

The increase in disposable income of end consumers has definitely helped the company to

increase its sales.

III. Environmental:

90% of any carbonated beverage is constituted of water, which is a scarce natural

resource.

IV. Technological:

The continuous efforts are on to reduce the cost of production.

V. Political: Politics may affect the business to some extent.

VI. Cultural:

Public has a good attitude towards company. Pepsi is a lifestyle brand so any

change in the lifestyle of customers directly affects the brand.

TASK ENVIRONMENT

I. Markets:

The major market segments are

• Alcoholics in bars

• Students in soft drinks hoses, restaurants, convenience stores.

• Families, which like to store pet bottles.

II. Customers:

Need of customers is to drive away thrust.
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III. Competitors:

The major competitor is Coca-Cola along with local/ unorganized sector.

Pepsi Co. Brads Coca-Cola’s brand
Pepsi Coke
7up Sprite
Mountain Dew Thums Up
Mirinda lemon Limca
Mirinda orange Fanta
Slice Maaza

Distribution and Dealers:

The 3 main channels to reach the consumers are

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Production unit

Distributor

Convenience Groceries
Restaurants
E.g. Pan shops - General stores - Bars
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Bakeries -Coldrink
- Canteens
Theatres
Snooker bars

Consumers

V. Suppliers:

The suppliers are of bottles, caps, openers, posters, advertising boards, sugar,

flavors. Etc.,

VI. Facilitators and Marketing firms:

The transportation were housing is outsourced. Pepsi Co has excellent advertising

agency. Pepsi Co is rated as top 3rd brand in India after ITC.

VI. Publics:

Teenagers and Alcoholics form a major opportunities.

SITUATIONAL ANALYSIS

The major players in soft drink market in India are Coca-Cola and Pepsi Co; both

companies have strong brands, which compete against each other.

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The current industry growth rate is 8%, which was 22% before the pesticide issue. The

pesticide issuer has affected both the company’s sales and market share very badly. The end

result was the consumer’s shifting to health drinks, which is an increasing trend and threat to

both the companies.

In order to increase their market share both the companies introduced 200 ml bottle,

which helped the total industry to grow by 10%.

Currently there is a price war going between both the companies.

In Belgaum market the supply is not meeting the demand in some areas. The Pepsi Co.

can still do better if the supply and service is taken care of.

INDUSTRY PROFILE

The Indian Carbonated Beverage Industry is a very dynamic industry. The soft drinks are

the life style brads and are closely related with the consumers. The passion for cricket in the

country makes it a unique market.

The Indian Carbonated Beverage Industry is worth Rs.1000crore, which is equal to

270mm cases i.e., 6480mm bottled.

The main ingredients of a soft drinks are water, sugar, added flavors, and carbonated gas.

Though some channels like Bar and Restaurants run business throughout year, for other channels

the peak season is between February to June.

Manufacturing Process:

WATER AND WATER TREATMENT

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Pure water is taste less, colours less and odor less. Water as it occurs in nature, whatever

the source, always contains impurities in solution or in suspension. The determination of these

impurities makes water analysis necessary and the control of these impurities makes water

conditioning essential.

The various sources of water can be classified as – Rainwater, surface water, ground

water. Irrespective of the source of water, the water has to be tested and treated before raking

into the production.

Testing and Treatment procedure adopted at M/s. Nectar Beverages Pvt.Ltd., Dharwad.

The source of water at Nectar Beverages Pvt.Ltd., is ground water. The water is tested or

various parameters like, hardness, alkalinity, suspended impurities, and for Microorganisms.

Treatment Procedure:

There are two types of water treatment adopted at Nectar Beverages Pvt.Ltd.,

1. Chemical Batch Treatment: This water is used for beverage purpose.

2. Ion Exchange: This water is used for Boiler Feed water, Cooling tower, D.G.Sets.,

Condenser, Heat Exchanger & Bottle washer.

1. Chemical Batch treatment process: Here, the raw water is collected in

storage tanks and dosages for chemical treatment are given according to the

characteristics of the raw water. The source of raw water is bore well.

At preset; we are holding three water treatment storage tanks, ou8t of which two tanks are

of 3, 00000 ltr. Capacity and one is 4, 00000 ltr capacity.

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Raw water is collected from the bore wells in the storage treatment tanks and analyzed

the characteristics of raw water Viz- P- alkalinity, M- alkalininity, temporary hardness and

calcium hardness, afterwards chemical dosages are fixed. After addition of chemicals,

mechanical agitator stirs the water, and 3 hors contact period is given before taking the water for

production.

Treated water passed through sand filter to remove and flock carry over, then an activated

carbon filter, which removes chlorine, and off tasted/odor causing impurities. Finally it goes

through 5 Micron pore size polishing filters to remove and carbon that may have been carried out

over from the carbon purifier, and then through ultraviolet. Chlorine concentration is maintained

at 6 to 8 PPM level before carbon filter and 2 hours contact time prior to dechlorination.

Details of Chemicals used:

1. Lime: Added to remove alkaline compounds from water to an acceptable level and to

reduce temporary hardness.

2. Bleaching powder: Added for chlorination to oxidize micro organism.

3. Ferrous sulphate: Added for coagulation and flocculation i.e., to remove the

suspended solids and also insoluble materials created by chlorination and alkalinity

reduction is removed.

The sludge is drained and the treatment tanks cleaned with water after every treatment and then

fresh raw water is taken for fresh treatment.

ION Exchange Method:

Source of water – Bore well

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Liquid hypochlorite is injected into the on-line water flowing from Bore well to raw water tanks.

Once the raw water is chlorinated, after giving sufficient contact time, the water is passed

through sand filter, carbon filter and resin bed. Then the soft water is stared in soft water storage

tanks. Before the water goes into storage tanks, 2- PPM of chlorine is injected into the on-line

water flowing from softener to soft water storage tanks. Contact time in storage tank is

minimum 2 hours. Then the water from the tank are being pumped on it passed through 5

Micron pore size polishing filters to the bottle washer/boiler. The concentration of chlorine at

the final outlet will be around 2 PPM.

SWEETENING AGENT & SYRUP PREPARATION

Sweetening agents are those subsistence, which when blended with flavour, acid, etc.,

will provide satisfactory sweet taste in the finished beverage. They also furnish body, which

helps to carry or transits the flavour. They also give energy or food value to the beverage.

Sugar is the sweetening agent, which is used in our industry.

Sugar is colour less or white when pure and derived from sugar cane.

Syrup Preparation:

The preparation of the syrup is certainly one of the most important operations in the

beverage plant, both from the standpoint of sanitation and control of concentration. The object

in syrup making is to prepare satisfactorily bended and finished syrup from which uniforms

beverages of high quality can be produced.

Normally required quantity of sugar of high quality is added to treated water and heated

to 85’ C, in a high grade stainless steel double jock vessel. Activated carbon is added to this to

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remove impurities. Impurities along with activated carbon added to the sugar are separated from

the sugar solution by filtering the sugar syrup. Filter paper and Hyflo supercel are used as filter

aid. The temperature of the clear syrup thus obtained is brought down to 20’C and stored is

called “Simple” syrup.

When the syrup is completely prepared by the addition and blending of all flavoring

ingredients it is called as “Ready” / “Finished” / Flavored syrup. The syrup is ready for use in

production process.

CO2 & CARBONATION

The phenomenal of acceptance of carbonated beverage as a form of refreshment is done

in part to a unique taste, Zest, and sparkle imparted to the beverage by Carbon Di-Oxide. It also

adds to the life of the beverage.

The CO2 used for Beverage purpose are 99.9% pure, free from moisture, air, oil, grease and other

impurities.

The amount of CO2 dissolved in solution is called as volumes. The number of volumes of

gas in the finished beverages has a definite relationship to the taste of the beverage. Correct

carbonation means a sparkling, stimulating, thirst quenching beverage that completely refreshes

and satisfies the consumer. Since there is definite relationship between taste and carbonation, it

is extremely important to determine and maintain the carbonation, which has proved most

acceptable through experience in consumer section.

The technique adopted at M/s. N.B.P.L. For carbonating the beverage is as under:

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The ready syrup, which is prepared and stored in ready syrup tanks, is taken to the bottling line.

It is passed through a machine called ‘Premix’ where the syrup is automatically diluted with

treated water to the required level. Once it is diluted it is sent to the carbonator for carbonation.

For carbonating the beverage a mechanical device known as “CARBONATOR” is used.

Co2 gas enters the carbonator through a valve at the top of the body of the carbonator. The dome

as well as the body of the carbonator is filled with gas. Syrup is sprayed into the carbonators

from the top, which flows down through the baffle plates provided inside the carbonator. As the

water flows down it gets mixed with the Co2 gas present inside the carbonator.

Carbonation can best be obtained by increasing the pressure inside the carbonator vessel

and by pre-cooling the syrup before it is pumped to the carbonator. Low gas volume product

need not be pre chilled

Concentrates

Flavoring Materials used in making carbonated beverages are primarily are alcoholic

extracts, emulsions, alcoholic solutions or fruit juices.

Concentrates or non-alcoholic beverage bases are supplied by our principal company

from Channo (Punjab) having international standards. On addition of

concentrate to the simple syrup we get respective finished syrup ready for further process to

bottle beverages.

Bottle washing and bottle inspection

ONE of the most important aspects of the bottling operation is the cleaning of the

reusable bottle when it returns to the bottling plant. In order to be reused the bottle must be

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sterile, of acceptable appearance, rinsed free of any detergent or sterilizing agent, and of good

mechanical strength.

The object of bottle washing is to product both a clean bottle and sterile one. The fact

that the bottle looks clean does not indicate it is sterile, and on the other hand, a dirty looking

bottle may be a sterile one.

The present day bottle washer is designed to both clean and sterilize bottle before sending

them to the filling line.

Bottle Washing Compounds:

Members of the alkali family of chemicals make up the basis of most bottle washing

compounds. Caustic soda is the principle ingredient because it has by far the best germicidal

properties.

We also add certain chemicals to caustic solution to improve the detergent action of the

solution. Three factors are crucial in the germicidal efficiency of the washer. These are: contact

time, caustic strength and temperature.

Operations of the Bottle Washer:

1. The first step in the operation precedes the washer. When the cases of empties return to

the bottling plant, they must be sorted and culled to remove especially dirty bottles, or

ones contaminated with paint, tar, etc., or chipped or broken bottles. This operation is

often done by hand.

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2. The inspected bottles are feed into the bottle washing machine, automatically. The

bottles are turned up side down to drain any contents and given a pre rinse spray wash

both internally and externally with plain water with certain pressure. This operation is

called pre rinse operation. Then the bottles are moved to pre wash compartment, where

the bottles are spray washed both internally and externally with 1 to 1.5% caustic solution

@ 45’C to 55’C temperature.

3. Bottles are then, moved into a tank in the bottle washing machine, where the bottles are

soaked with caustic solution of 3 to 3.5% @ 75’C temperature. To get

this best results that bottles are to be soaked in this compartment for a minimum of 7

minutes at the caustic strength & temperature given as above. This operation cleans and

sterilizes the bottle.

4. Then the soaked bottles are moved to a compartment called “Hydro”, where again the

bottles are given spray wash both internally and externally with 1 to 1,5% caustic wash

@ 50 to 55’C.

5. Bottles are moved to a compartment called pre-final compartment where again the bottles

are given spray wash with soft water to remove the caustic traces. Here the temperature

is maintained around 40 to 45’C.

Finally bottles free from caustic moved to a compartment called final rinse compartment where

the bottles are again, wanted sprayed both inside and outside with soft water to deliver clean and

sanitary bottles to the conveyor enroute to filler at ambient temperature.
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Before the bottles moved through the conveyor, the bottles are subjected to methylene blue test

to ensure the bottles are free from mold and as also tests are carried our to determine whether the

bottles are free from caustic traces. These tests are done at random.

Then the washed bottles are moved through conveyor to filler for filling operation.

Before the bottles are moved to filler the bottles are subjected to visual inspection, which is

called bottle inspection.

Bottle Inspection:

The clean bottles undergo inspection after they leave the washer and before they arrive at the

filler. Inspection can be done visually by an individual. It is a job requiring a great deal of

concentration and no individual can be efficient for long stretches at time. Provision should be

made for changing inspectors frequently, and adequate bring diffused light should be provided

which illuminates all parts of the bottle effectively, but does hot glare in the operators eyes.

A receptacle should be provided, convenient to the inspector for non-usable bottles, and cases

should be handy to accumulate unclean bottlers for rewashing. Those bottles found acceptable to

the empty bottle inspector are sent for filling and crowning.

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Filling and the bottling line

The bottles, on a suitable conveyor line arrive at the rotary filler, which is equipped with

filing heads. The beverages filling unit includes a filling tank, which receives beverage from the

carbonator.

The tank is also connected to the gas chamber of the carbonator. This connection insures

balanced pressure and a proper beverage level in the tank.

On entering the head, the bottle is sealed to the filling valve and a counter pressure is

established in the bottle. At this point, the pressure inside the bottle is equal to and derived from

the filling tank.

Once the bottle is properly pressurized, carbonated water flows in displacing air and Co2

in the bottle. The displaced gas passes through the counter pressure lines back to the top of the

filler tank.

When the proper level of beverage in the bottle is reached, the supply is cut off and the

top gas pressure in the bottle is sifted to the atmosphere.

Once the top pressure has been released, the bottle is removed from the valve and passes

to the crowner.

The crowning unit consists of the hopper for holding the crown supply, a crown chute

and the crowning mechanism. The crowned bottle then moves from the crowner on to the out

feed conveyor.

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Final Inspection Point:

Then the sealed bottles are moved on a conveyor line and it is subjected to a final

inspection. Where the inspector checks for un crowned bottles, over/under filled bottles, foreign

matter (if any), and for any other visual defects.

Once the inspector satisfies with the quality of product and package, he allows moving

the bottles, further to the collecting table, where the bottles are manually collected and put in the

crates of 24 bottles and moved further for warehousing, and awaiting shipment.

Plant Sanitation

The most scrupulous sanitation practices are essential in soft drink plant. The highest

standard of cleanliness for premises, personnel and equipment is obviously necessary due to the

type of operation involved that of manufacturing a food product.

Sanitation is necessary to insure the keeping qualities, proper appearance and full flavour

of any soft drink. When the equipment becomes contaminated, yeast, bacteria or mold

microorganisms begin to appear in the finished beverage. Increased number of these

microorganisms will cause the development of undesirable tastes and odors and ultimate spoilage

of the product. Nothing will kill the demand for a beverage any quicker than off-tastes and odors

or product spoilage.

Hence sanitation, good plant house keeping and good manufacturing practice are strictly

implemented at N.B.P.L.
28


Quality Assurance

Perhaps the most important activities in a bottling plant are those concerned with the

maintenance of the standards of purity and uniformity set for the beverages produced. These

activities can be grouped together under the heading of Quality Assurance.

To get the top most quality of finished product, all the ingredients such as water, sugar,

Co2, concentrate are strictly inspected and analyzed by our Quality Assurance Department.

Apart from raw materials, on line sampling, finished products are also tested.

Samples of beverages produced are picked up from the market for testing by independent

laboratories of international repute.

History of organization

The manufacturing of soft drinks began in the 1830's. However, the evolution of soft

drinks took place over a much longer time period. The forerunners of soft drinks began more

than 2,000 years ago when Hippocrates, the "Father of Medicine," first suspected that mineral

waters could be beneficial to our well-being. But Hippocrates did not envision drinking the

effervescent mineral waters bubbling from the earth's crust. Instead, the Greeks and Romans

used them for bathing and relaxation. More than a thousand years passed before mineral waters

made the transition from therapeutic bath to refreshing beverage.

29


The soft drink industry was a seasonal business in the early days, operating primarily

during the summer months. Sales were limited by few outlets for the new carbonated beverages,

and by the consumer's restricted mobility.

How Soft Drinks Are Made:

Soft drinks are mostly water. So the quality of the water going into soft drink is very

important. A series of filtration systems produces the super-purified water that is fresh, clean and

clear.

The Flavor Secret

Here’s where the magic happens. From secret recipes, flavorings are added to give each

soft drink its unique taste. By combining sweeteners, herbs, berries, and many other wholesome

ingredients, a syrup base is created which is added to the pure water

Adding Bubbles Is A Gas:

After the flavors are added brands like Pepsi and Coke is enhanced in India the local brands are

being stabilized by advertisements, good quality and low cost.

The soft drinks market till early 1990s was in hands of domestic players like Campa,

Thumps up, Limca etc but with opening up of economy and coming of MNC players Pepsi and

Coca-Cola the market has come totally under their control.

Non-alcoholic soft drink beverage market can be divided into fruit drinks and soft

drinks. Soft drinks can be further divided into carbonated and non-carbonated drinks. Cola,

lemon and oranges are carbonated drinks while mango drinks come under non-carbonated
30


category. The market can also be segmented on the basis of types of products into cola products

and non-cola products. Cola products account for nearly 63-64% of the total soft drinks market.

The brands that fall in this category are Pepsi, Coca- Cola, Thumps Up, and Diet coke, Diet

Pepsi etc. Non-cola segment, which constitutes 36-37%, can be divided into 4 categories based

on the types of flavors available, namely: Orange, Cloudy Lime, Clear Lime and Mango.

Soft drink production area:

The market preference is highly regional based. While cola drinks have main markets

in metro cities and northern states of UP, Punjab, Haryana etc. Orange flavored drinks are

popular in southern states. Sodas too are sold largely in southern states besides sale through bars.

Western markets have preference towards mango-flavored drinks.

PepsiCo is a world leader in convenient foods and beverages, with revenues of about

$29 billion and over 153,000 employees. The company consists of the snack business of Frito-

Lay North America and the beverage and food businesses of PepsiCo Beverages and Foods,

which includes PepsiCo Beverages North America (Pepsi-Cola North America and

Gatorade/Tropicana North America) and Quaker Foods North

America. PepsiCo International includes the snack businesses of Frito-Lay International and

beverage businesses of PepsiCo Beverages International. PepsiCo brands are available in nearly

200 countries and territories.

31


In May 1886, Doctor John Pemberton a pharmacist from Atlanta, Georgia invented

Coca Cola. John Pemberton concocted the Coca Cola formula in a three legged brass kettle in his

backyard. The name was a suggestion given by John Pemberton's bookkeeper Frank Robinson.

The soft drink was first sold to the public at the soda fountain in Jacob's Pharmacy in

Atlanta on May 8, 1886.

Until 1905, the soft drink, marketed as a tonic, contained extracts of cocaine as well as

the caffeine-rich kola nut. By the late 1890s, Coca-Cola was one of America's most popular

fountain drinks. With another Atlanta pharmacist, Asa Griggs Candler, at the helm, the Coca-

Cola Company increased syrup sales by over 4000% between 1890 and 1900. Advertising, was

an important factor in Pemberton and Candler's success and by the turn of the century, the drink

was sold across the United States and Canada. Around the same time, the company began selling

syrup to independent bottling companies licensed to sell the drink. Even today, the US soft drink

industry is organized on this principle

The competition:

In 1931, when Coca-Cola was the envy of the world of soft drinks and one of the

most worry-free profit machines in the history of business in the United States, Pepsi-Cola was

declared bankrupt for the second time in its history. In 1987, PepsiCo, Inc., with sales of over

$11 billion, ranked 29 in Fortune's list of the nation's 500 largest corporations. One analyst

asserted in 1986 that PepsiCo "has emerged as perhaps the single best consumer products

company that exists today." Coca-Cola's sales in 1987 were $7.7 billion, which placed it 54 in

the Fortune 500.

32


Both companies were diversified by the mid-1980s. About 70 percent of Coca-Cola's sales and

almost 85 percent of its profits, however, were still derived from soft drinks, with the remainder

coming from the food and entertainment divisions.

No single foreign investment has been the center of much attention and controversy in

the late 1980 and 1990s as the PepsiCo project in India. The project, Pepsi

Foods Limited, was cleared by the Indian government in September1988 as a joint venture of

PepsiCo, Punjab government-owned Agro Industrial corporation (PAIC) and Voltas India

limited. Before this project was cleared, PepsiCo made an attempt to enter into India as early as

in May1985, when it teamed up with Agro Product export Ltd.

A company owned by R. P. Goenka group, and sought permission from the central

government to import cola concentrate and sell a PepsiCo brand soft drink in the Indian market,

in return for export of juice concentrate from Punjab. Under this proposal, the main objectives

put forward by PepsiCo were ‘to promote the development and export of Indian made and Agro

–based products and to foster the introduction and development of PepsiCo products in India’.

This proposal which was submitted to the secretary at Ministry of Industrial development

received rejections on the grounds that the import of concentrate could not be agreed to and the

use of foreign brand names as Domestic Tariff Area (DTA) was not allowed.

PepsiCo successfully played the ‘Punjab card’ and again put forward a proposal in 1986

with stress more on diversification of Punjab agriculture and employment generation rather on

soft drinks. The proponents of project called it as a second “Green Revolution” in Punjab and

projected it as harbinger of a horticulture revolution that would end stagnation in Punjab’s rural

sector and would help in promoting small and middle farmers. A strong argument was put

forward that this project will create ample of employment opportunities for the unemployed
33


youth who has taken the path of terrorism and there by help in restoration of peace in Punjab.

This argument was well received in the political circles in Delhi and Punjab, which finally led to

PepsiCo’s entry into India in the form of joint venture with PAIC and Voltas as its partners. The

equity of Pepsi Foods Limited was divided among the partners with PAIC holding 36.11 %,

Voltas 24% and PepsiCo 36.89% coupled with the‘PunjabCard’. PepsiCo also made certain

commitments with Indian government that also formed the basis of its entry, such as

 The project will create employment for 50000 people nationally, including 25000 jobs in

Punjab alone;

 74 percent of the total investment will be in food and agro-processing. Manufacturing of

soft drinks will be limited to only 25 percent.

 PepsiCo will bring advanced technology in food processing and provide thrust by

marketing Indian products abroad.

 State of the art technology in food processing and provide in the field of soft drink

manufacturing and soft drink manufacturing at no foreign outflow;

 50% of the total value of production will be exported:

 An Agro –research center will be established by Pepsi Co in consultation with ICAR and

Punjab Agricultural University.

 No foreign brand name will be used for domestic sales;

 The export –import ratio will be 5:1 over 10 years, which means that for every dollar

spent in foreign exchange on this project, the company will ensure an export earning of 5

dollars for 10 years.

34


 25% of the total fruits and vegetable crops in Punjab will be processed in the project

 A substantial increase in government revenue due to consumer market expansion and tax

collection.

The proposal concluded by stating how well the project fitted with broad objectives

of the economy and how it ‘specifically supported national priorities in area such as Exports,

Agriculture, Employment and Technology’.

Many of PepsiCo's brand names are over 100-years-old, but the corporation is

relatively young. PepsiCo was founded in 1965 through the merger of Pepsi-Cola and Frito-

Lay. Tropicana was acquired in 1998 and PepsiCo merged with The Quaker Oats Company,

including Gatorade, in 2001.

Employees, business partners and the communities in which company operates and

in everything company does, company strives for honesty, fairness and integrity.

35


ORGANIZATION CHART

Nectar Beverage Pvt. Ltd

Sales & Marketing Head

Territory Development Sales manager Marketing Manager

Prod.n Finance
Manager Manager
Area sales Manger 1 Area sales Manager 2

CE1 CE2 CE3 CE4 CE1 CE2

Distributor1 Dist.2 Dist.3 Dist.4

Route1 Route2 Route3

SAMPLING

36


All the potential retaailers in a particular selected area were considered is the sample.

The sample will be divided in 3 categories. 1. Convenience, 2. Grocery,

3. Restaurant. The Convenience like pan shops, bakeries, theatres etc., Groceries like general

stores and Restaurant like bars, cold drink houses & canteens etc.

The sample sizes will 50 retailers and 100 customers

RESEARCH DESIGN AND METHODOLOGY

• Selection of Data collection Method:

Primary data: Tabular format filling

In-depth Interview

Interaction.

Secondary data: Internet

• Selection of Measurement Technique:

Quantitative analysis, bar & pie charts.

• Primary considerations in Sampling

- Population: Retailer and consumers of Belgaum

- Sample Frame: selected areas in Belgaum

- Sample Size: 50 retailers and 100 customers

- Sample Plan: visit to pepsi company retailers by vehicle & by walk.

• Method of Analysis:

• Quantitative
37


• Ethical aspects:

I have made an effort to make this research work free from personal

Opinions and likings.

• Time and Financial Cost: Total survey took 12 to 15 days and Cost incurred was Rs

2000/-

• Limitations of study:

1) The study was confined to Belgaum city

2) The study was limited to only 50 retailers and 100 consumers

38


CONTENTS

- Results & discussion with graphs & chart

- Conclusion, a proposed action plan with resource requirements

Retailer response analysis

1) Major lemon flavor preferred by customer

39


7up 22

Sprite 15

Limca 7

Mirinda lemon 6

50%
44%
45%
40%
35%
30%
30%
25% Series1
20%
14%
15% 12%
10%
5%
0%
7up Sprite Limca Mirinda lemon

Source: field survey

Major sale of lemon flavors brands like 7up(pepsi) and sprite (coca cola) and others

where 7up having sale of 42%, sprite having 30%, limca having 16% and mirinda lemon having

8%

2) Reason for sale of particular brand

7UP

40


Availability 6

consumer demand 47

price 2

advertisement 13

80%

69%
70%

60%

50%

40% Series1

30%

20%
19%
9%
10%
3%

0%
Availability Consumer demand Price Advertisement


Since consumer demand is more for 7up brand is about 69% is the reason for sale ,19%

advertisement, 9% due to availability and only 3% sale due to price

B) Reason for sale of particular brand

Sprite

41


Availability 6

consumer demand 35

price 3

advertisement 12

70%
63%

60%

50%

40%
Series1
30%
21%
20%
11%
10% 5%

0%
Availability consumer price advertisement
demand


Since consumer demand is more for sprite about 63% is the reason for sale 21% due

advertisement, 11% availability and only 5% sale due to price

3) sale of cases per month lemon flavour brand (7up)

42


1-2 case 14

2-4 case 28

4-6 case 5

6& above 3

60% 56%

50%

40%
28%
30% Series1

20%
10%
10% 6%

0%
1-2 case 2-4 case 4-6 case 6& above


Based on the survey it is revealed that lemon flavor Pepsi brand sale 1-2 case is 28%, 2-4 cases is

56% ,4-6 cases is 10% and 6 & above is 6% due to season fluctuation some variation may occurs

43


4) Further expectation from lemon flavor

7UP

Improve taste 27

Better availability 19

Better Benefits 30

Others 14

Others 16%

Better Benefits 33%

Series1

Better availability 21%

Improve taste 30%

0% 5% 10% 15% 20% 25% 30% 35%


44


based on the response 30% of the retailers expect improve taste, 21%better availability, 33%

expect better benefits which include gifts, tour package etc if they sale more and 16% expect

others feature like repair charges, cooling charges ect

5) Sale of 7UP

Reduced 13

Not reduced 37

Reduced
26%

Reduced
Not reduced

Not reduced
74%


Based on the survey it was found that 74% of the retailer felt that the sale of 7up is

not reduced and 26% say reduced due to lean season.

45


B) Sale of Sprite

Reduced 18

Not reduced 32

Reduced
36%
Reduced
Not reduced
Not reduced
64%


46


From the response 64% of the retailer felt that the sale of sprite is not reduced and 36%

say reduced.

6) Delivery of soft drink 7UP (pepsi)

Yes 39

No 11

No
22%

Yes
No

Yes
78%


47


78% of the retailer are satisfied with delivery of the product where as 22% are not

satisfied with delivery provided by the pepsi company

B) Delivery of soft drink Sprite (coca cola)

Yes 35

No 15

Yes No yes
70% 30% no


48


70% of the retailer are satisfied with delivery of the product where as 30% are not

satisfied with delivery provided by the coca cola company

7) Satisfied with commission/ margin paid by 7up (pepsi)

Yes 48

No 2

No 4%

Series2

Yes 96%

0% 20% 40% 60% 80% 100% 120%

49


96% of the retailers are satisfied with commission/margin paid by the pepsi

company remaining 4% are not satisfied.

B) Satisfied with commission/ margin paid by Sprite (coca cola)

yes 46

No 4

No 8%

Series1

Yes 92%

0% 20% 40% 60% 80% 100%


50


92% of the retailers are satisfied with commission/margin paid by the coca cola

company. Remaining 8% are not satisfied.

8) Satisfied with credit and payment procedure by 7up (pepsi)

Yes 41

No 9

No
18%

Yes
No

Yes
82%


51


82% of retailers are satisfied with credit facility and payments procedure provided by

the pepsi company remaining 18% are not satisfied

B) Satisfied with credit and payment procedure by Sprite (coca cola)

Yes 38

No 12

No
24%

Yes
No

Yes
76%

52



76% of retailers are satisfied with credit facility and payments procedure provided by

the coca cola. Company remaining 24% are not satisfied.

Findings based on Retailers survey

The following finding based on the survey consists of sample size of 50 retailer

respondents distributed in selected areas of Belgaum city.

1) Major sale of lemon flavor brands like 7up (pepsi) and sprite (coca cola) and others where

7up having sale of 42%, sprite having 30%, limca having 16% and mirinda lemon having 8%.

2) science consumer demand is more for 7up product is about 69% where as sprite

has 63% so retaining the consumer demand is must availability of sprite is low

when compare to 7up

53


3) Based on the survey it is revealed that lemon flavor Pepsi brand sale 1-2 case is 28%, 2-4

cases is 56% ,4-6 cases is 10% and 6 & above is 6% due to season fluctuation some variation

may occurs

4) 13% of the respondents having soft drink daily, 42% twice in a week and 30% weekly and

remaining 15% of the respondents having soft drink occasionally.

5) Retailers expect some more better benefits like gifts, tour package and improve

taste so they can sale more.

6) based on survey found that sale of both 7up and sprite brand is not reduced.

When compare to each other 7up having (78%) better sales than sprite (70%).

7)This has been observed that majority of the retailers are happy with delivery at

the right time, credit facility and commission provided by the company.

Consumer Response Analysis.

1) Lemon flavor preferred by consumers

7UP 42

Sprite 34

Others 14

54


others
16%

7UP 7UP
46% sprite
others
sprite
38%


Based on the survey 46% of the respondents prefer to drink 7up and 38% of the respondents

prefer to drink sprite and remaining 16% prefer other brands.

2) Consumption pattern of soft drink

Daily 12

Twice a week 38

55
Babasabpatilfreepptmba.com 27
weekly

occasionally 13


45% 42%

40%

35%
30%
30%

25%
Series1
20%
15%
15% 13%

10%

5%

0%
Daily Tw ice a w eekly occationally
w eek


From the survey 13% of the respondents having soft drink daily, 42% twice in a week and

30% weekly and remaining 15% of the respondents having soft drink occasionally.

3) Reasons behind preferring 7up

56


Taste 23

availability 4

refresh ness 18

price 1

promotion 15

bottling/labeling 0

0%
Taste
25%
availability
37%
refresh ness
2%
price
promotion
29% 7% bottling/labeling

57



37% of the respondent prefer a particular 7up brand because of taste, 29% prefer because of it

is refreshing and 2% prefer because of price, 25% of respondent prefer because of promotional

activities and rest of the 7% respondents prefer a particular brand because of availability.

B) Reasons behind preferring Sprite

Taste 18

availability 8

refresh ness 15

price 2

promotion 13

bottling/labeling 0

58


0% Taste
23%
32% availability
refresh ness
4%
price
promotion
27% 14%
bottling/labeling


32% of the respondent prefer a particular sprite brand because of taste, 27% prefer because of

it is refreshing and 4% prefer because of price, 23% of respondent prefer because of

promotional activities and rest of the 14% respondents prefer a particular brand because of

availability.

4) Mode of advertisement for 7up

news paper/magazine 5

TV ads 19

Hoardings 5

Internet 8

other 7

59


new s
other paper/maga news
16% zine paper/magaz
11% ine
TV ads

Internet
18%
Hordings
TV ads
44%
Internet
Hordings
11%
other


43% of respondent are convinced with TV ads as a mode of advertisement, 18% with internet,

7% with others like celebrities, cartoons and 5% by news papers, 5% by hoarding are the

convenience mode of advertisement

B) Mode of advertisement for Sprite

60


news paper/magazine 6

TV ads 15

Hoardings 5

Internet 7

other 3

Other News News
8% Paper/ma Paper/magazine
gazine
TV ads
17%
Internet
19% Hoardings

Internet

Hoardings TV ads
14% Other
42%

61



42% of the respondents agree with TV ads as a mode of advertisement is

convincing, 19% are saying internet, 17% news paper, 14% are saying hoarding and only

8% respondents says others like celebrities.

5) Consumer preference of 7up brand based on their profession

student 59

service 17

other 14

62


other 16%

service 19% Series1

student 65%

0% 20% 40% 60% 80%


Out of 90% respondent 65% belongs to student professions, 19% belongs to services like

government and private sector and 16% of the respondent belongs to other profession

6) Consumer opinion about lemon flavor 7up brand

Excellent 6

Good 22

Moderate 14

Poor 2

Very poor 0

63


64


60%
50%
50%

40%
31%
30% Series1

20% 14%

10% 5%
0%
0%
Excellent Good Moderate Poor Very
poor


65


14% of the respondent has excellent opinion about 7up lemon flavor. 50% have good

opinion , 31% moderate and only 5% poor opinion, very poor is nil

B) Consumer opinion about lemon flavor sprite brand

Excellent 4

Good 13

Moderate 16

Poor 3

Very poor 0

66


50%
44%
45%
40% 36%
35%
30%
25% Series1
20%
15% 12%
10% 8%

5%
0%
0%
Excellent Good Moderate Poor Very poor


12% have excellent opinion about sprite lemon flavor, 36% have good opinion, 44%

moderate and only 8% poor opinion and very poor is nil.

67


7) Expectation of consumers from 7up brand

better taste/flavor 30

Availability 15

Price 7

Promotional activity 18

Packaging/labeling 9

Others 6

68


better
taste/f lavour
7%
Availablity
11%
35% Price

Promotionnal
21%
activity
Packaging/la
beling
8% 18%
Others


69


Based on the response of consumer 35% expect better taste, 21% promotional

activity, 18% expect availability of product, 11% expect convenient packaging and 8% expect

reduce in price, only 7% expect others like gift offers.

B) Expectation of consumers from Sprite brand

better taste/flavor 26

Availability 22

Price 5

Promotional activity 15

Packaging/labeling 14

Others 6

70


better
taste/flavour
Availablity
7%
16% 29%
Price

Promotionnal
17% activity
6% 25% Packaging/la
beling
Others


30% of the respondent better taste from sprite, 25% availability of product, 17%

promotional activities, 16% expect convenient packaging, 5% expect reduce in price and 6%

expect others like gift offers etc.

8) The celebrities really influence consumer to buy the soft drink

strongly agree 18

agree 43

neither agree nor disagree 15

disagree 12

strongly disagree 2

71


60%
48%
50%

40%

30% Series1
20%
20% 17%
13%
10%
2%
0%
storngly agree neither disagree storngly
agree agree nor disagree
disagree


Based on the response 20% of the respondents are strongly agree with the celebrities really

influence them to buy a soft drink. 48% agree, 17% neither agree nor disagree, 13% disagree and

only 2% are strongly disagree

72


Findings based on consumer survey

1). Based on the survey 49% of the respondents prefer to drink 7up and 40% of the respondents

prefer to drink sprite and remaining 11% prefer other brands.

2). 37% of the respondent prefer a particular 7up brand because of taste, 29% prefer because of it

is refreshing and 2% prefer because of price, 25% of respondent prefer because of promotional

activities and rest of the 7% respondents prefer a particular brand because of availability.

Where as, 32% of the respondent prefer a particular sprite brand because of

taste, 27% prefer because of it is refreshing and 4% prefer because of price, 23% of respondent

prefer because of promotional activities and rest of the 14% respondents prefer a particular

brand because of availability.

3) Based on the response of consumer 35% expect better taste, 21% promotional activity, 18%

expect availability of product, 11% expect convenient packaging and 8% expect reduce in price,

only 7% expect others like gift of

Where as 30% of the respondent better taste from sprite, 25% availability of product, 17%

promotional activities, 16% expect convenient packaging, 5% expect reduce in price and 6%

expect others like gift offers etc.

4) Out of 90% respondent 65% belongs to student professions, 19% belongs to services like

government and private sector and 16% of the respondent belongs to other profession

5) 14% of the respondent have excellent opinion about 7up lemon flavor. 50% have good

opinion , 31% moderate and only 5% poor opinion, very poor is nil. where as,

73


sprite has 12% have excellent opinion about sprite lemon flavor, 36% have good opinion, 44%

moderate and only 8% poor opinion and very poor is nil

6) 20% of the respondents are strongly agreed with the celebrities really influence them to buy a

soft drink. 48% agree, 17% neither agree nor disagree, 13% disagree and only 2% are strongly

disagree

7) 42% of the respondents agree with TV ads as a mode of advertisement is convincing to them,

19% is saying internet.

74


Suggestion

 Consumers prefer 7up (Pepsi) lemon flavor soft drink because of its taste but they expect

some more improvement in. Therefore the company has to improve the taste to satisfy the

consumers and finally to have more sales

 Good taste is the major factor, which influence to buy a soft drink. Therefore the

company should try to retain its taste.

 Retailers are satisfied with sale of 7up but they also expect some better benefits like

repair charges, cooling charges, gifts and improved taste. So, that they can sell more.

 As a major segment of consumer are student / teenagers. Sponsoring them for their

educational assistance like scholarship and prizes would sure increase the brand image.

 This has been observed that majority of the retailers are happy with delivery at the right

time, credit facility and commission provided by the company

 The company should undertaken social responsibility campaigns like AIDS awareness,

population control pollution control etc and activities like construction of hospital, roads.

 Consumer prefers pepsi for different occasion and they don’t want to change brand. So in

order to retain them the company should maintain quality of the product.

75


 Majority of the respondents feel that celebrities really influence to buy a soft drink so

company should concentrate on these aspects

Conclusion

It is true to any extent that the consumer is in a state of confusion than comfort. Due to the mind-
boggling advertising. Strategies used by all the brands, consumer choice have
Increased numerously.
Still “consumer is the king” holds its highest value. Although there is a neck to neck competition

with Coca-Cola, Pepsi had emerged as the strongest brand.

The factors influencing while decision making in consuming soft
Drinks in Belgaum are the taste of the product, brand name and advertisements, celebrities that
influence the consumer attitude to a larger extent. There is greater market potential for 7up soft
drink business in Belgaum City due to the presence of a larger population of college students in
the city. At present Pepsi brands especially, lemon flavor 7UP soft drinks have a greater market
share in Belgaum City when compared to the Coca-Cola lemon flavor brands of Sprite soft drink
among the international brands
.
Thus report come to a point that, since the Belgaum city is potential market for lemon flavor 7UP
soft drink so company must concentrate on future market by improved taste.

76


CONTENTS

- Executive Summary

- Appendix

Questionnaire

- Bibliography

Retailer code sheet

77


Q
Q.No 4 Q No. 7 Q8 Q9 Q 11 Q 12 Q 13
A1 A2 A3 A4 B1 B2 B3 B4 1 2 3 4 1 2 1 2 1 2 1 2
Samples
1 1 1 2 4 1 1 3 2 1 1 1 1 1 2 1
2 3 2 2 2 4 2 2 1 1 1 1 1 1
3 2 2 2 4 1 2 1 1 1 1 1 1 1
4 1 2 3 2 2 1 1 1 1 1 1
5 2 2 1 2 3 1 1 1 1 1 1 2 1
6 1 2 4 1 2 4 2 1 2 1 1 1 2 1
7 3 1 2 4 2 4 1 3 2 2 2 1 1 1 1 1
8 2 2 2 2 3 2 2 1 1 1 2 1 2
9 1 2 2 1 1 1 1 1 1 1 1 1
10 2 2 3 2 2 1 1 1 1 1 1
11 1 2 2 1 4 2 2 1 1 1 1 1 2
12 1 2 3 1 3 2 1 1 1 1 1 1 1
13 3 2 2 2 3 2 2 2 1 1 1 2 1
14 2 1 3 4 2 2 3 1 2 1 2 2 1 1 1
15 1 2 1 2 2 2 1 1 1 1 1 1
16 2 2 2 4 1 3 4 2 1 1 1 1 1 1 1
17 2 2 2 1 4 2 2 1 1 1 1 1 1
18 3 2 2 3 2 1 1 1 1 1 1 1
19 1 2 4 2 2 3 1 2 1 1 1 1 2 1
20 2 2 3 1 3 2 2 1 1 1 1 1 1
21 3 1 2 2 4 2 1 1 1 1 1 1 2
22 1 2 2 3 2 2 1 1 1 1 1 1
23 2 2 4 2 1 2 2 2 1 1 1 1 1
24 1 2 2 1 2 3 4 1 2 1 1 1 1 2 1
25 4 2 4 1 2 1 1 1 1 1 2 1
26 1 2 2 2 2 1 1 1 2 1 1
27 1 2 4 1 2 1 2 3 2 2 1 2 1 1 1 1
28 1 1 2 2 4 2 1 1 1 1 1 1 1
29 2 2 2 1 1 2 2 1 1 1 1 1
30 1 2 2 4 2 3 2 1 1 1 1 1 2 2
31 3 2 2 1 3 4 2 2 1 1 1 1 1 1
32 1 4 1 3 2 2 1 1 1 1 1 1
33 2 2 2 2 1 2 1 1 1 1 2 1
34 4 2 2 1 3 2 1 1 2 1 1 1 1
35 1 1 2 2 4 3 4 2 2 1 1 1 1 1 2
36 1 2 4 1 2 1 3 1 2 2 1 1 1 2 1
37 1 2 2 2 1 1 1 2 1 1 1
38 2 2 2 1 3 4 2 2 1 1 1 1 1 1
39 4 2 3 2 3 2 2 1 1 2 1 1 1 1
78

A project report on competition between pepsi co and coca cola brands

A project report on competition between pepsi co and coca cola brands

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A project report on competition between pepsi co and coca cola brands