Transcription
APROJECT REPORTONMARKET ANALISYES FOR POSITIONINGOF PEPSI & COCA COLA IN INDIAIN PARTIAL FULFILLMENT OFBACHELOR DEGREE IN BUSINESSADMINSTRATION2009-2012BYPRIYA DUBEYGuided byProf. Mr. Pradeep TripathiDayanand Academy of Management StudiesKanpur
1DATED:LETTER NO:TO WHOM IT MAY CONCERNThis is certify that Ms. Priya Dubey student of DayanandAcademy of Management Studies, Kanpur, hascompleted her project on the topic of MARKET ANALISYESFOR POSITIONING OF PEPSI & COCA COLA IN INDIA atVARUN BEVERAGES LTD., GREATOR NOIDA has submittedher project report for the period 16/01/12 to 03/03/12 inpartial fulfillment of BBA of the college for the academicyear 2009- 2012.Ms. Priya Dubey, has done his project to our satisfaction.During the said training period with us we found him sincereand hard working.We wish her all the success in the future.For VARUN BEVERAGES LTD.HUMAN RESOURCES
2DECLERATIONI hereby declare that project Titled MARKET ANALISYESFOR POSITIONING OF PEPSI & COCA COLA IN INDIA isan original piece of research work carried out by me underthe guidance and supervision of Prof. Mr.Pradeep Tripathi,the information has been collected from genuine &authentic sources. The work has been submitted in partialfulfillment of the requirement of BBA to our college.Place:Signature:Date:student:Name of the
3ACKNOWLEDGEMENTIt gives me great pleasure and satisfaction for the successfulcompletion of this project. Every successful piece of workhas many invisible helping hands with their invaluablesupport and inspiration. For the completion of my projectreport many person directly or indirectly assisted me.At first, I would like to express my sincere thanks and deepgratitude to my esteemed guide Prof. Pradeep Tripathi, fortheir kind initiative guidance and valuable suggestionwithout which the completion of this would not have beenpossible.I hope this report will be special interest to the marketingstudents, who are on look for such real life situation beyondtheir classroom studies.Place:Signature:Date:student:Name of the
4TABLE OF CONTENT1. INTRODUCTION62. The Indian Beverage Market83. History Pepsi & Coke4. Overall effectiveness245. New Marketing Environment256. Marketing Plan of PEPSI297. Market Share in INDIA348. International expansion399. Overview about COCA-COLA4310. Object of the work5111. Marketing strategy of coke54
12. Coca Cola & Pepsi organization chart6113 Data Analyses of Indian market6514. Local competitor7015. SWOT Analysis of Pepsi & Coke7716. Packing & Logo design8017. Conclusion8418 Questionnaire865INTRODUCTIONIndia with a population of more the 100 cores is potentiallyone of the largest consumer markets in the world. Withurbanization and development of economy, tastes andinterests of the people changes according to the advancenation.
Marketing is about winning this new environment. It is aboutunderstanding what consumers want and supplying it moreconveniently. Marketing deals with identifying and meetinghuman needs and social needs. One of the shortestdefinitions of marketing is “meeting needs profitably”. Theconsumer market may be identified as the market forproduct and services that are purchased by individuals ashousehold for their personal consumption. Soft drinks is atypical consumer product purchased by individual primarilyquench their thirst and also for refreshment. Different typesof soft drinks are available in the market and more or lesscontent of all soft drinks is same. The market of soft drinksis facing a cutthroat competition and many companies arefloating in the market with their product with differentbrands names.Thus in a country like India where more than 50% of totalpopulation exists below poverty Line, the consumer cannotafford such high price for soft drinks. As a result the tradingActivities of the soft drinks industry are concentrated in andaround big cities and town where the purchasing power ofpopulation is considered comparatively high.6Soft drinks industry in India has an annual sale of about4000crores, with per capita Consumption of soft drinks at alow of seven bottle per annum (even Pakistan has a per
capita Consumption of 14; in china and U.S.A is more than900 bottles) is due to price factor.The marketing manager is responsible for both determiningand suitability of goods and services in the market to givemaximum satisfaction to the consumer. In order to providemaximum satisfaction, the manager need to know, what isthe satisfaction level of the consumer i.e. what is theirexpectation from the products etc. In order to meet aboverequirements marketing manager conduct marketingresearch. Marketing research identify market opportunities,After the completion of marketing research, the companymeasures and forecast the size, growth and profit potentialof each market opportunity.7The Indian Beverage Market
India’s one billion people, growing middle class, and low percapita consumption of soft drinks made it a highly contestedprize in the global CSD market in the early twenty-firstcentury. Ten percent of the country’s population lived inurban areas or large cities and drank ten bottles of soda peryear while the vast remainder lived in rural areas, villages,and small towns where annual per capita consumption wasless than four bottles.Coke and Pepsi dominated the market and together had aconsolidated market share above 95%. While soft drinkswere once considered products only for the affluent, by2003 91% of sales were made to the lower, middle andupper middle classes. Soft drink sales in India grew76%between 1998 and 2002, from 5,670 million bottles toover 10,000 million and were expected to grow at least 10%per year through 2012.In spite of this growth, annual percapita consumption was only 6 bottles versus 17 in Pakistan,73 in Thailand, 173in the Philippines and 800 in the UnitedStates With its large population and low consumption, therural market represented a significantOpportunity for penetration and a critical battleground formarket dominance. In 2001, Coca-Cola recognized that tocompete with traditional refreshments including lemonwater, Green coconut water, fruit juices, tea, and lassies,competitive pricing was essential. In response, Cokelaunched a smaller bottle priced at almost 50% of thetraditional package.8
HISTORY OF PEPSI:PEPSI, company founded by CALEB D BRADHAM in 1890 atNorth Carolina in USA. Its CEO is ROGER ENRICO and in IndiaPepsi –CO. Holding its chairman MR.RAJIV BAKSHI. The headquarter of Pepsi-CO.in India is at Gurgaon. Presently it isoperated in 196 countries.Pharmacist CALEB invented it to cure the disease―DISPARSIA. It is from this word that was related to Pepsi.Soon it entered market American market as soft drink whichat that time was mostly dominated by coca-cola, but soonPepsi was able to dominate the cola market and there afterIt has been no looking back. Pepsi and coca-cola areengaged in ferocious cold war that has taken the wholeworld by storm.Pepsi stands 51 positions among the fortunate 500companies of the world. Its total capital is approx 3000crore and total sales annually is worth 37 crore, half ofwhich comes from beverages and other half from the snackfoods division. The beverages arm of the Pepsi co. Is Pepsicola Company and the snack –food company is called frin tolay Inc. The year 1998 is the centennial year of Pepsi. Itstotal profit in the year 1996-1997 was worth Rs.45 coreapprox. The total number of employees engaged in thisbusiness is 4.25 lakhs globally.9
:INDRA NOOYI, CEO of PEPSI IN INDIA:Indra Nooyi was born in Chennai inTamilnadu, India. She completed herschooling from holy Angelis AIHSS,Chennai. She received a bachelor’sdegree in Physics, chemistry andmathematics from Madras ChristianCollege in 1974 and a Post Graduate inManagement (MBA) from Indianinstitute of Management Calcutta in 1976.Beginning hercareer in India, Nooyi held product manager positions atJohnson & Johnson and textile firm Mettur Beardsell. Shewas admitted to YALE SCHOOL OF MANAGEMENT in 1978and earned a Masters degree in public and privateManagement.PepsiCo Executive:Nooyi joined PepsiCo in 1994 and was named president andCFO IN 2001. Nooyi has directed the company’s globalstrategy for more than a decade and led PepsiCo’srestructuring, including the 1997 divestiture of itsrestaurants into Tricon. Now known as yum! Brands. Nooyialso took the lead in the acquisition of Tropicana in 1998 andmerger with Quaker oats Company. Which also broughtGatorade to PepsiCo? In 2007 she became the fifth CEO inPepsiCo’s 44 year history.
According to Business week since she started as CFO in2000, the company’s annual revenues have risen 72% whilenet profit more than doubled, to 5.6 billion 200810Nooyi was named on wall street journal’s list of 50 women towithin 2007 and 2008 and was listed among Time’s 100most influential people in world in 2007 and 2008. Forbesnamed her the most powerful women in 2008. On the 7th ofOctober 2010 forbes magazine ranked her the 6th mostpower full woman in world.Honours, Awards and International Recognition:Forbes magazine ranked Nooyi fourth on the 2008 and 2009list of The World’s 100 most Powerful Women. Fortunemagazine has named Nooyi number one on its annualranking of most powerful women in business for 2006 ,2007, 2008, 2009, and 2010. In 2008 Nooyi was named oneof America’s Best leaders by U.S. new & world report. In2008 she was elected to the fellowship of the AmericanAcademy of arts and Sciences.In January 2008, Nooyi was elected chairwomen of the US –India Business council. Nooyi leads USIBC’S Boards of
DIRECTORS, an assembly of more than 60 senior executiverepresenting a cross –section of American Industry.Indra Noyi has been named 2009 Ceo of the Year by Globalsupply chain Leaders Group.In 2009, Nooyi was considered one of “The TOPGUN Ceos’ny Brendan wood international, an advisory agency. In 2010She was named 1 on11YearNameAwardingorganization2011 Honorary Doctor of LawsWake ForestUniversity.2011 Honorary Doctor of LawsUniversity ofWarwick.2011Honorary Doctorate ofLawMiami University.2010Honorary Doctorate ofHumane LettersPennsylvania StateUniversity.2009 Honorary DegreeDuke University.2009 Barnard Medal of Honor Barnard College.2008 Honorary DegreeNew YorkUniversity.Fortune’s list the“50 most powerfulwomen and 6th onforbes list of theWorld’s 100 mostpowerful women”After five years ontop , PepsiCo ‘sIndian Americanchairman and CEOIndra Nooyi hasbeen pushed to thesecond spot as mostpowerful women inUS business byKrafats CEO.
122007 Padma BhushanPresident of India.2004 Honorary Doctor of Laws Babson College.Memberships and AssociationsIndra Nooyi is a successor fellow of to Yale corporation sheserves as a member of the foundation boards of the World
Ecnomic Forum . International Rescue committee catalystand the Lincoln Center for the performing Arts. She is also amember of the Boards of trustees of EisenhowerFellowships. And has served as chairperson of US Indiabusiness Council.Indra Nooyi serves as an Honorary Co-Chair for the WorldJustice Project. The World Justice Project works to lead aglobal, multidisciplinary effort to strengthen the Rule of Lawfor the development of communities of opportunity andequity.13History Pepsi & CokePepsi-Cola was founded in 1904 by Caleb Bradham, the inventor of thenow popular carbonated drink. In six short years later, there were almostthree hundred bottlers in three states alone. By 1923, the company wentbankrupt after sugar prices skyrocketed. In 1931, Charles Guth’s LoftCandy Company bought the company. The new owners doubled the
previous six ounce bottle size for the same five cent price. Profits increaseddrastically and the search for new bottlers to join the franchise began.Within twenty years, efficiency nearly doubled in matters of production soPepsi began building new plants. The 1970s further increased productivityby using light weight plastic to produce bottles more efficiently. As the1980s went on, Pepsi focused on increasing the amount of franchises itowns, which gave a total of eighty by the end of the eighties. During thetwentieth century, Pepsi began expanding their company internationally;those profits brought in less than ten percent of their total. Pepsi’s differentbottlers have finally merged by 1997 and separated into bottling andmarketing divisions in the next year. Pepsi Bottling Group earned the rightto sell, manufacture, and distributes Pepsi products internationally,specifically to Turkey. This cost one hundred million dollars. Finally in2006, Pepsi Bottling Group became a joint manufacturer with sixteenregional bottlers and called them Pepsi Northwest Beverages.14Nature of Business:The Pepsi Bottling Group manufactures, distributes, and delivers its widevariety of bottled drinks. Between Canada and the United States, seventyfive percent of the company’s sales are accounted for. After PepsiCo bought
Pepsi Bottling Group, PepsiCo now owns about eighty percent of the NorthAmerican bottled drink distribution centers. This transaction allowsPepsiCo to be one of the biggest food and beverage companiesinternationally. Pepsi Bottling Group also made it possible to cut costs,increase profitability, and introduce the market with new products morequickly. In 2008, Pepsi Bottling Group expanded more rapidly than ever bypurchasing JSC Lebedyansky, the number one ranked juice maker inRussia, for over a little over a billion dollars. This buyout earned PepsiBottling Group twenty-five percent of the international bottling business.Since its affiliated company owned the other seventy-five percent, this wasa great move. One year later, Pepsi Bottling Group bought Better Beveragesand Ab-Tex beverage. It now has the exclusive rights to sell its bottledbeverages internationally in Canada, Spain, Greece, Russia, and Turkey aswell as domestically in forty-two states plus Washington D.C. In addition toowning the Mexican Pepsi Bottler, it sells Dr Pepper fo
HISTORY OF PEPSI: PEPSI, company founded by CALEB D BRADHAM in 1890 at North Carolina in USA. Its CEO is ROGER ENRICO and in India Pepsi –CO. Holding its chairman MR.RAJIV BAKSHI. The head quarter of Pepsi-CO.in India is at Gurgaon. Presently it is operated in 196 countries. Pharmacist CALEB invented it to cure the disease
