Compartive Study on Pepsi & Coke

WINTER TRAINING PROJECT On CONSUMER PERCEPTION TO WORDS PEPSI AND COKE’S BEVERAGES In Meerut

Submitted to: Mr. V.S.Solanki sir Singh IPM, Meerut

submitted by: Abhishek 2nd semester PGDM 2008-

2010

Institute of Productivity & Management -1-

ACKNOWLEDEMENT It is indeed a great pleasure and privilege for me to present “CONSUMER PERCEPTION TO WORDS PEPSI AND COKE’S BEVERAGES” in Meerut in year 2006 - 2008. I take immense pleasure in thanking to Mr. V S Solanki Sir & Mr. Susant Mittal Sir for giving me an opportunity to do this project and for their valuable suggestion and guidance. It is pleasure to thank Mr. Parmindar Sir for allowing me to use the lab at odd hours in the night. I also wish to thank library madam for allowing me to use the library and for helping colleting books and magazines. I also extend my thanks to all those who directly or indirectly involved in my project completion. At last I would like to thanks once again to our faculty Mr. V S Solanki Sir whose sincere support has enable me at each and every step and his experience always give me the right direction to achieve my goal.

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CONTENT DECLARATION.................................................................................................................................................................5 GUIDE CERTIFICATE ....................................................................................................................................................6 INTODUCTION..................................................................................................................................................................7 CONTROVERSY ON PRESENCE OF PESTICIDES...................................................................................................9 ABOUT MEERUT............................................................................................................................................................10 RESEARCH OBJECTIVES.............................................................................................................................................11 METHODOLOGY............................................................................................................................................................12 SOURCE OF COLLECTION OF DATA.......................................................................................................................13 ASSUMPTIONS................................................................................................................................................................13 REPRESENTATION OF DATA THROUGH CHART..........................................................................................14 RATIO OF MALE & FEMALE RESPONDANT..........................................................................................................14 PRODUCT DETAIL.........................................................................................................................................................16 MARKET SHARE OF PEPSI & COKE’S BEVERAGES...........................................................................................17 OVERALL SHARE OF THE PRODUCTS....................................................................................................................20 BRAND LOYALTY..........................................................................................................................................................23 RESEARCH FINDINGS..................................................................................................................................................27 LIMITATIONS..................................................................................................................................................................29 CONCLUSION..................................................................................................................................................................30 ALSO THE OUTCOME THAT CAME OUT FROM THIS RESEARCH WORK IS THAT IN CITY MEERUT COKE IS THE MARKET LEADER WITH 54% MARKET SHARE. PEPSI IS HAVING ONLY 46% MARKET SHARE. I COME TO KNOW THAT PEPSI IS THE LEADING BRAND OF PEPSI CO. WITH 29% MARKET SHARE OF ITS TOTAL MARKET SHARE AND THUMS UP IS THE LEADING BRAND OF COKE WITH 28% MARKET SHARE OF ITSELF.....................................................................................................30 THROUGH THIS RESEARCH I ALSO COME TO KNOW THAT YOUNG GENERATION IS THE POTENTIAL MARKET FOR BEVERAGE INDUSTRY, TASTE IS THE 1ST PREFERENCE TO CHOOSING THE PRODUCT AND ONE MORE IMPORTANT FACTOR THAT BELOW 12 YEARS AND ABOVE TO 50YEARS PEOPLE LIKE THE SOFT DRINKS WHILE PEOPLE BETWEEN 12- 30 YEAR PREFER COLA DRINKS AND REST PEOPLE WHO COMES IN BETWEEN 30 -50 YEAR HAVE COMMON. .............................................................................................................................................................................................30 BIBLIOGRAPHY..............................................................................................................................................................31 QUESTIONNAIRE

.....................................................................................................................................................31

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PREFACE “Learning categories you and practicing on that learning specializes you” Practical aspect gives more knowledge and experience than the theory and no learning can be completed without practical aspects. Winter training is one of the most important parts of our curriculum for management students, its basic idea is to strengthen the students’ concept through winter training and make them equipped with recent development. This project report has been in partial fulfillment of my post graduate diploma in management (PGDM). In days when it was business as usual companies could succeed by there new products with concept and supported by hard selling and good advertisement and consider that customer exhibit varying diverse requirement for product/Services combinations and price consider that they have high and rising expectations of quality and services. In the face of their vast choices. Customers will gravitate to the offering that best meet their individual needs and expectation value. And all this will come out as the positioning of the brand in the market.

Date: Place: Meerut

ABHISHEK SINGH

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DECLARATION I do hereby declare that this project entitled with “Consumer Perception to Words Pepsi and Coke’s Beverages” in Meerut Area is my own and original work. This is for fulfilling the requirement of Post Graduate Diploma in Management as a winter training project. It has never been submitted nor been published else where.

Date: Place:

Abhishek Singh

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GUIDE CERTIFICATE

This is to certify that this project report titled “CONSUMER PERCEPTION TO WORDS PEPSI AND COKE’S BEVERAGES” has been submitted in partial fulfillment of award of Post Graduate Diploma in Management (PGDM) of Institute of Productivity and Management, Meerut. It is a confide winter training project report carried out by Mr. Abhishek Singh, Roll No. 02, Session 2008-2010

Date: Mr. V.S. Solanki Faculty of IPM, Meerut

Place:

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INTODUCTION

Pepsi was founded in New York in 1965. Its head quarter is in Purchase, New York. It is Producing Non-alcoholic beverage and Food processing items. As my topic is Nonalcoholic beverage so I am only focusing on that only. Pepsi is a carbonated beverage that is produced and manufactured by PepsiCo. It is sold in retail stores, restaurants cinemas and from vending machines. The drink was first made in the 1890s by pharmacist Caleb Bradham in New Bern, North Carolina. The brand was trademarked on June 16, 1903. Pepsi arrived on the market in India in 1988.PepsiCo gained entry to India in 1988 by creating a joint venture with the Punjab government-owned Punjab Agro Industrial Corporation (PAIC) and Voltas India Limited. This joint venture marketed and sold Lehar Pepsi until 1991, when the use of foreign brands was allowed; PepsiCo bought out its partners and ended the joint venture in 1994. Others claim that firstly Pepsi was banned from import in India, in 1970, for having refused to release the list of its ingredients and in 1993, the ban was lifted, with Pepsi arriving on the market shortly afterwards. These controversies are a reminder of "India’s sometimes acrimonious relationship with huge multinational companies." Indeed, some argue that PepsiCo and The Coca-Cola Company have "been major targets in part because they are well-known foreign companies that draw plenty of attention."

Ingredients Pepsi-Cola contains basic ingredients found in most other similar drinks including carbonated water, high fructose corn syrup, sugar, colorings, phosphoric acid, caffeine, citric acid, and natural flavors. The caffeine-free Pepsi-Cola contains the same ingredients minus the caffeine.

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Coca-Cola is a carbonated soft drink sold in stores, restaurants and vending machines worldwide.

The Coca-Cola Company in Atlanta, Georgia produces it. It was

incorporated in 1886. The Coca-Cola Company claims that it is sold in over 200 countries. The US soft-drink giant, Coca-Cola, reentered India in the 1990s after abandoning its businesses in the late 1970s in the wake of Foreign Exchange Regulation Act of 1973. The Act, meant to 'Indianize' foreign companies, made it mandatory for foreign companies to dilute their shareholdings to 40 per cent. Instead of diluting its shareholdings to the required limit prescribed by the Act, Coca-Cola opted to discontinue its operations in India. Coca-Cola is a leading player in the Indian beverage market with an approximate 60 per cent share in the carbonated soft drinks segment. The US soft-drink giant, Coca-Cola, reentered India in the 1990s after abandoning its businesses in the late 1970s in the wake of Foreign Exchange Regulation Act of 1973. The Act, meant to 'Indianize' foreign companies, made it mandatory for foreign companies to dilute their shareholdings to 40 per cent. Instead of diluting its shareholdings to the required limit prescribed by the Act, Coca-Cola opted to discontinue its operations in India.

Logo design The famous Coca-Cola logo was created by John Pemberton's bookkeeper, Frank Mason Robinson, in 1885. It was Robinson who came up with the name, and he also chose the logo’s distinctive cursive script. The typeface used, known as Spenserian script, was developed in the mid 19th century and was the dominant form of formal handwriting in the United States during that period -8-

Controversy on presence of Pesticides In 2003 and again in 2006, the Centre for Science and Environment (CSE), a non-governmental organization in New Delhi, claimed that soda drinks produced by manufacturers in India, including both Pepsi and Coca-Cola, had dangerously high levels of pesticides in their drinks. Both PepsiCo and The Coca-Cola Company maintain that their drinks are safe for consumption and have published newspaper advertisements that say pesticide levels in their products are less than those in other foods such as tea, fruit and dairy products

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About Meerut

Meerut “The City of Revolution” is a major city of western U.P., located around 65 Km. from the national capitol DELHI. It has a population more than a million and it is considered to be one of the fastest developing cities in western U.P. Since it is close to the National Capital so the effect of rapid modernization can easily be seen in the lifestyle of the people

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Research Objectives



Comparative study to find out the market share of the Products in

Meerut. 

To study the effect of Advertisement on the buying decision of the

Consumer. 

To Study the Consumer Perception about the taste and availability of

product.

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METHODOLOGY I have done Descriptive research to find out our objectives. In descriptive research we use the primary and secondary data. Research methodology is the way to systematically solve the research problem. The method used for the research is Descriptive Research to find out our objectives. In descriptive research we use the primary and secondary both data, Sample Design for primary data have been collected through probability sampling. In which I have used convenient sampling. Data is Collected through Market survey in Pallavpuram, Shastri Nagar, Ganga Nagar, Golden Avenue, Paleda of Meerut City. Data Collection Instrument: - Well prepared structured questionnaires were used in this study, which includes both closed-ended and few openended questions to get information based on the objective of the research process. People of different age group from different economic background were asked to fill the questionnaire containing 15 questions. Sample Size is taken 85 out of which 5 questionnaires had been rejected due to Mistakes, which was made by the respondents.

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SOURCE OF COLLECTION OF DATA All the useful data which were require for this research has been collected through Primary and secondary date.



Primary data collected through Questionnaire



Secondary data collected through Internet, Magazines and Newspaper

ASSUMPTIONS  It is assumed that the chosen sample is the representation of whole population.  It is assumed that information provided by the samples is accurate and best of their knowledge.

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REPRESENTATION OF DATA THROUGH CHART RATIO OF MALE & FEMALE RESPONDANT Total numbers of respondent were 85 out of which 5 questionnaires is rejected. So final date interpretation is done on the basis of only 80 questionnaires.

Total respondent were 80 Gender

Number

male

67

Female

13

84% 16%

Male

Female

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Profile of respondent Total respondent were 80 Profile

Number

Student

39

Service

18

Housewife

5

Professional

6

Businessman

8

others

4

5%

48%

10% 8% 6% Student Professional

23% Service Businessman

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Housewife Other

PRODUCT DETAIL Beverage product can be divided in two types:  Cola drinks  Soft drinks Pepsi Products: 

Pepsi

(cola drink)



7UP

(cola drink)



Mirinda

(soft drinks)



Dew

(cola drink)



Slice

(soft drinks)



Coke

(cola drink)



Mazza

(soft drinks)



Limca

(cola drink)



Sprite

(cola drink)



Fanta

(soft drinks)



Thums up

(cola drink)

Coke Products:

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MARKET SHARE OF PEPSI & COKE’S BEVERAGES

Company Pepsi Coke

Total respondent80 No of respondent 37 43

Market share

46% 54% Coke

Pepsi

On the basis of above data coke is leading with 54% market share

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PRODUCT SHARE OF PEPSI Total respondent of Pepsi 37 Product Line No of Respondent Pepsi 11 7up 6 Mirinda 7 Dew 6 Slice 7

22% 29%

16% 14%

19% Pepsi

7up

Mirinda

Dew

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Slice

PRODUCT SHARE OF COKE Total respondent of Coke 43 Product Line No of Respondent Coke 9 Mazza 10 Limca 3 Sprite 6 Fanta 3 Thums up 12

21%

28%

7%

23% 14% Coke Sprite

7% Mazza Fanta

Limca Thums up

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OVERALL SHARE OF THE PRODUCTS Total respondent 80 Product Line Pepsi 7up Mirinda Dew Slice Coke Mazza Limca Sprite Fanta Thums up

No of Respondent 11 6 7 6 7 9 10 3 6 3 12

13%

14% 4%

8%

8% 9%

4% 8%

12% 9%

11% Pepsi slice Sp[rite

7up Coke Fanta

Mirinda Mazza Thums up

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Dew Limca

REASON BEHIND CHOOSING THE PRODUCT Total respondent 80 Preferences Taste Advertisements Schemes Easy availability People Like Others

No of Respondent 61 8 5 4 1 1

1% 6% 5% 1% 10%

77% Taste easy availibility

Advertisment People like

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schemes other

EFFECT OF ADVERTISMENT Total respondent 80 Influence of Advertisements No of Respondent Yes No

30 50

38%

62%

Yes

No

62% respondent said that Advertisements Influence their buying decision, While 38% said that it doesn’t influence them for buying

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Brand loyalty If the desired verity of beverage is not available at particular shop, how does consumer respond? Total respondent 80 Respond Take another verity Visit next shop Suggest to have same verity Postpone decision

16%

No of Respondent 26 35 13 6

7% 32%

45% Take another verity visit next shop Suggest to have same verity Postpone decison

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PRESENCE OF PESTICIDES Total respondent 80 Respond Fully disagree Agree to some extent Fully agree

No of Respondent 32 43 5

6% 40%

54% Fully disagree Fully agree

Agree to some extent

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CONSUMPTION OF BEVERAGRS

How often people consume beverages? Total respondent 80 Respond Once a week Twice a week More than twice a week Once in two week When ever you required

No of Respondent 19 20 14 3 24

24%

29%

4% 25%

18%

once a week more than twice a week when ever you need

twice a week once in a week

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INTERPRETATION On the basis research the facts which have come out are:  Coke is leading the market with 54% market share in Meerut, while Pepsi is covering only 46% market in Meerut. 

Under the brand name of Pepsi, Pepsi is the capturing highest market share with 29% in Meerut, while slice is second market leader of Pepsi with 22% market share.

 Under the brand name of coke Thums up is market leader with 28% market share and Fanta is second largest with 23% market share. 

The population between 12- 30 year prefer the cola products, while population above to 50 and below 12 prefer soft drinks, and population prefer both in Meerut.

 Only 38% population only influenced by advertisement, rest 62% population belies that Advertisements are not much effective.  45% population are loyal to words there product. 

54% population beliefs there cold drink have pesticide up to some extent. Instead of that they are using cold drinks.

 77% of population is being influenced by taste only, while 10 % population by Advertisements only.

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Research Findings As it was 1st research Project of my life, so it gave my lot of experience which will be very helpful in my life as well as in my summer training. 

On the basis of that research we find that in case of beverages people are much influenced by taste rather than Advertisements and other things.



I come to know that Young generation is the biggest consumer of cold drinks than any other.



By this research we analyze that male prefer cola dinks, while female prefer soft drinks.



Frequency of consume to cold drinks is higher of male than female.



By combining all the beverage verities I come to know that Thums up is the market leader with 14 % total market share while Pepsi is the second highest market leader with 13% market share.



If the Buying decision of consumer is rated 1st preference will go to Taste,

2nd will go to Brand,

3rd preference will go to schemes,

4th preference will go to Price,

5th preferences will go to Packaging.

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Recommendation

Though the coke is enjoying about 54% of the total market share and it is market leader in Indian beverage industry. While with the 46 % market share Pepsi is on the second step. If we are analyzing properly then we find Pepsi is small product portfolio than coke, which is responsible for its second position.  Pepsi should increase its product portfolio to capture the Coke’s market share.  Companies should focus on the taste of the product because 77% population is influenced by taste only.  Young generation is the potential consumer so companies should more focus on them. 

As we find that 40 % population consumes 200ml cold drinks. Which comes in glass bottles, these bottles are being retuned back for refilling to companies. Which incurred again cost of retransportation. If company start to supply 200 ml cold drinks in pet bottles (plastid bottles) it will be good for company because 40% of population is using only 200ml.

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Limitations It was my 1st research project so due to curiosity I put my whole heart on this project. But still are certain limitations while doing the research work. Some of the limitations are as follows.  One of the biggest limitations with this project work is the time factor. As

we did our project in Meerut, which is not well known to me. So it become difficult to conduct survey in Meerut 

The sample size of 80 respondents is too small to find out the consumer perception. Because I was covering Pepsi & Coke both.

 There might have been tendencies among the respondents to amplifying or filter their responses under the testing.  In some cases, the respondent was not giving me the proper reply. He/she

might think that this is only wastage of time or this might create some problem etc. And as a result he/she has given some fake answers and fills the questionnaire very casually.  The area of study is limited and confined to certain limitation.  It is possible that some potential source might have remained untapped.  Since the result has been drawn on the basis of the information provided by the respondents therefore there is a chance of error.  The questioners were in English so many people were avoiding to fill the questioners

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Conclusion After the completion of project I have seen the different aspects of this Winter Training Project. Also I have gained some new experience about the consumer research. While surveying I have met a large number people, with different perceptions, with different nature, and as a result of this I have learnt a lot of things like how to talk with the different people with different behavior. I am benefited a lot and this will definitely help me a lot in my summer training as well as in the future.

Also the outcome that came out from this research work is that in city Meerut coke is the market leader with 54% market share. Pepsi is having only 46% market share. I come to know that Pepsi is the leading brand of Pepsi co. with 29% market share of its total market share and Thums up is the leading brand of coke with 28% market share of itself. Through this research I also come to know that young generation is the potential market for beverage industry, taste is the 1st preference to choosing the product and one more important factor that below 12 years and above to 50years people like the soft drinks while people between 12- 30 year prefer cola drinks and rest people who comes in between 30 -50 year have common.

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BIBLIOGRAPHY Internet: www.pepsi.com www.google.com www.wikipidia.com www.pepsicenter,com www.agencyfaqs.com www.indiainfoline.com www.pepsicoworld.com

Books: Magazines Research papers Research Methodology by C.R Kothari

Questionnaire Respected Sir/Madam - 31 -

I am MBA student of IPM Meerut. As of the course of my curriculum, I am doing the market research. Therefore, I need your valuable view for the question given below. I will be highly grateful to you. Which brand of cold drink you like the most?

1.

a) Pepsi

b) 7up

c) Mirinda

d) Dew

e) Slice

f) Coke

g) Mazza

g) Limca

h) Sprit

i) Fanta

j) Thums up

2.

What is the reason behind choosing your Brand?

a) Taste

b) Advertisement

c) Easily available

d) People like

How many times in a week, you take cold drink.

3.

a) Once 4.

b) twice

7.

b) 300ml

c) 500ml

d) 2Lt

What is your Age? Please specify (

6.

d) More than three time

Which quantity of your cold drink you often purchase?

a) 200ml 5.

c) thrice

)

What is your income per month? a) 0-10 thousands

( )

b) 10-15 thousands

c) 15-20 thousands

( )

d) more than 20 thousands ( )

What is your profile? - 32 -

( )

a) Student

b) Professional

c) Working

d) Any other Specify

8. Since how much time you are using your brand? a) 1-6 month

b) 6-12-month

c)1-2 year

d) more than 2 year

9. If your desired brand of cold drink is not available at particular shop a) Take any other brand

b) visit next shop

c) Suggest to have that brand

d) don’t take any brand

10. How many members in your family are? Please specify (

)

11. Which brand of cold drinks often comes in your family? Pepsi

7up

Sprit

Fanta

Mirinda

Name Age Occupation Address Contact No (If any)

Dew Slice Coke

Mazza

:::::-

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Thums up

Limca

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