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ENTREPRENEURSHIP
                   PROJECT
                BRAND RIVALRIES




Name of the school     : SHARJAH INDIAN SCHOOL

NAME OF THE STUDENT : DAN K. JOHN

CLASS                  : XII-E
CBSE ROLL NO.           :

ACADEMIC YEAR          : 2012-2013

TEACHER IN CHARGE      : MR. JAMES THOMAS
INDEX
SL.         TITLE           SOURCE OF THE         PAGE   SIGN OF THE
NO.                            PROJECT             NO.     TEACHER

 1    Acknowledgement

                                    -
 2       Brand Rivalry       www.wikipedia.org
        An INTRODUCTION


 3           Pepsi           www.wikipedia.org
       An Introduction


 4          Pepsi            www.wikipedia.org
         the history        www.pepsiarabia.com

 5     Products Of Pepsi     www.wikipedia.org



 6         Coca-Cola         www.wikipedia.org
       An Introduction


 7        Coca-Cola          www.cocacola.com
         the history


 8     Products Of Coca-     www.wikipedia.org
            Cola


 9     Pepsi Vs Coca-Cola     www.versus.com
         A Comparison


10     Pepsi Vs Coca-Cola    www.slideshare.net
         THE COLA WAR         www.scribd.com

11     Pepsi Vs Coca-Cola
      Which Cola brand is
          the Better
         Investment?
                                    -
12   Pepsi Vs Coca-Cola   www.infobarrel.com
     PRESENCE IN INDIA


13   Pepsi Vs Coca-Cola
       Marketing           www.google.com

14   Pepsi Vs Coca-Cola
       Advertising         www.google.com
       Strategies

15   Pepsi Vs Coca-Cola
       Conclusion
                                 -
16   BIBLIOGRAPHY

                                 -
ACKNOWLEDGEMENT
  I have taken efforts in this project. However, it would not have been
   possible without the kind support and help of many individuals and
 organizations. I would like to extend my sincere thanks to all of them.


   I thank my God for providing me with everything that I required in
                         completing this project.


I am highly indebted to the Teacher in Charge Mr. James Thomas for his
 guidance and constant supervision as well as for providing necessary
information regarding the project & also for his support in completing the
                                 project.


I would like to express my gratitude towards my parents for their kind co-
operation and encouragement which helped me in the completion of this
                                 project.


   I would like to express my special gratitude and thanks to industry
             persons for giving me such attention and time.


My thanks and appreciations also go to my classmates in developing the
  project and to the people who have willingly helped me out with their
                                abilities.
BRAND RIVALRY
                     An INTRODUCTION

A brand is a name, term, sign, symbol, or design which is intended
to identify the goods or services of one seller or group of sellers
and to differentiate them from those of competitors.

Products and services have become so alike that they fail to
distinguish themselves by their quality, efficacy, reliability,
assurance and care. Brands add emotion and trust to these products
and services, thus providing clues that simplify consumers‘ choice.

These added emotions and trust help create a relationship between
brands and consumers, which ensures consumers‘ loyalty to the
brands. Brands create inspirational lifestyles based on these
consumer relationships. Associating oneself with a brand transfers
these lifestyles onto consumers

Branding is more than just a business buzz word. It has become the
crux of selling in the new economy. If the old marketing mantra
was, ―Nothing happens until somebody sells something‖, the new
philosophy could be ―Nothing happens until somebody brands
something."

In its simplest form, a brand is a noun. It is the name attached to a
product or service. However, upon close inspection, a brand
represents many more intangible aspects of a product or service: a
collection of feelings and perceptions about quality, image, lifestyle
and status. It creates in the mind of customers and prospects the
perception that there is no product or service on the market that is
quite like yours. In short, a brand offers the customer a guarantee
and then delivers on it.

Creating a strong brand identity will build mind share one of the
strongest competitive advantages imaginable. As a result, customers
will think of your business first when they think of your product
category. For example, when you think of tissues, more likely than
not, you think of the Kleenex brand. And when you're looking for
tape to wrap a present, Scotch is the brand that springs to mind.
Likewise, when your child wants a hamburger, he will often say he
wants to go to McDonald‘s. The reason behind these strong brand-
product associations is that these companies have built rock solid
brand identities.

And since ‗brand‘ being such a powerful tool in the success of a
business, it is not strange that we see though competition between
brands offering similar kind of goods or services. This is known
Brand Rivalry.

Brand rivalry is an extra aggressive in competition between two
different brands to reach at number one or to capture more market
share. In the most aggressive variants, ethics, moral values and even
the law can be neglected and it is only a race to reach the number
one position which drives the brand.

The main reason for brand rivalry is that the companies are trying
to get more customers and to increase their market. The aim of the
battle is to get the customer to buy your product and not the product
of the competitor.

There are two types of customers: Active and Passive. Active
customers know what they want. And passive ones, on the contrary,
have no idea of what they want and think for a long time about what
product to buy. So, the second group – passive customers – is the
bone of contention, the object of fighting in brand wars. Thus,
companies are trying to get their customers by many methods. These
methods are: improving the quality of goods, then lowering prices
and offering discounts, and using advertising, of course. The brand
wars often take the form of price wars. It‘s when to competing
companies are lowering prices more and more until they reach the
level of their costs and they just get no profit. Price wars are good
for customers but bad for companies as they decrease their profits.
So, it‘s better to use other methods when fighting in a brand war.

In today‘s global scenario brand rivalry is not only about
competitive advantage, but also being closer to customer, i.e. to
have superior customised customer connectivity and it is used for
fighting between brands for the best position. It specifically implies
inter-brand completion by rival firms producing close substitutes
(brands). This target at reducing the market share of the competitor
firm while advancing its own.
The aim of this project is to bring out two rival brands, go deep
into its formation, history and growth; then to analyse the
rivalry that exists between them and to understand the
difference between the strategies and tactics adopted by each of
them

In this project we will be comparing the rival brands PEPSI & COCA-
COLA.
PEPSI
                     AN INTRODUCTION
Pepsi is a carbonated soft drink that is produced and manufactured
by PepsiCo. Created and developed in 1898 and introduced as
"Brad's Drink", it was later renamed as Pepsi -Cola on
June 16, 1903, then to Pepsi in 1961.

It is one of the most well known brands in the world today available
in over 160 countries. It has an extremely positive outlook for
India. This reflects that India holds a central position in Pepsi's
corporate strategy.

India is a key market for Pepsi co, and at the same time the
company has added value to Indian agriculture and industry.
PepsiCo entered India in 1989 and is concentrating in three focus
areas- Soft drink concentrate, snack foods and vegetable and food
processing.

Faced with the existing policy framework at the time, the company
entered the Indian market through a joint venture with Volta‘s and
Punjab Agro Industries. With the introduction of the liberalization
policies since 1991, Pepsi took complete control of its operations.

The government has approved more than US$ 400 million worth of
investments of which over US$ 330 million have already flow n in.
One of PepsiCo's key strategies was to develop a co mpletely local
management team.

Pepsi has 19 company owned factories while their Indian bottling
partners own 21. The company has set up 8 Greenfield sites in
backward regions of different states. P epsiCo intends to expand its
operations and is planning an investment of approximately US$ 150
million in the next two-three years.
PEPSI
                        The history

Pepsi was originally named "Brad's Drink", after its creator, Caleb
Bradham, a pharmacist in New Bern, North Carolina. It was created
in the summer of 1893 and was later renamed Pepsi Cola in 1898,
possibly due the digestive enzyme pepsin and kola nuts used in the
recipe. Bradham sought to create a fountain drink that was delicious
and would aid in digestion and boost energy

In 1903, Bradham moved the bottling of Pepsi -Cola from his
drugstore into a rented warehouse. That year, Bradham sold 7,968
gallons of syrup. The next year, Pepsi was sold in six -ounce bottles,
and sales increased to 19,848 gallons. In 1926, Pepsi received its
first logo redesign since the original design of 1905. In 1929, the
logo was changed again. In 1929, automobile race pioneer Barney
Oldfield endorsed Pepsi-Cola in newspaper ads as "A bully
drink...refreshing, invigorating, a fine bracer before a race".

Bankruptcy

In 1931, the Pepsi-Cola Company went bankrupt during the Great
Depression- in large part due to financial losses incurred by
speculating on wildly fluctuating sugar prices as a result of World
War I. Assets were sold and Roy C. Megargel bought the Pepsi
trademark. Eight years later, the company went bankrupt again.
Pepsi's assets were then purchased by Charles Guth, the President of
Loft Inc. Loft was a candy manufacturer with retail stores that
contained soda fountains. He sought to replace Coca-Cola at his
stores' fountains after Coke refused to give him a discount on syrup.
Guth then had Loft's chemists reformulate the Pepsi-Cola syrup
formula.

Pepsi Cola Trademark

The original trademark application for Pepsi -Cola was filed on
September 23, 1902 with registration approved on June 16, 1903. In
the application's statement, Caleb Bradham describes the tradema rk
as an "arbitrary hyphenated word "PEPSI -COLA", and indicated
that the mark was in continuous use for his business since August 1,
1901. The Pepsi-Cola's description is a flavoring -syrup for soda
water. The trademark expired on April 15, 1994.


A second Pepsi-Cola trademark is on record with the USPTO. The
application date submitted by Caleb Bradham for the second
trademark is Saturday, April 15, 1905 with the successful
registration date of April 15, 1906, over three years after the
original date. Curiously, in this application, Caleb Bradham states
that the trademark had been continuously used in h is business "and
those from whom title is derived since in the 1905 application the
description submitted to the USPTO was for a tonic beverage. The
federal status for the 1905 trademark is registered and renewed and
is owned by PepsiCo, Inc. of Purchase.

Rise

During the Great Depression, Pepsi gained popularity following the
introduction in 1936 of a 12 -ounce bottle. Initially priced at 10
cents, sales were slow, but when the price was slashed to five cents,
sales increased substantially. With a rad io advertising campaign
featuring the jingle "Pepsi cola hits the spot / Twelve full ounces,
that's a lot / Twice as much for a nickel, too / Pepsi-Cola is the
drink for you," Pepsi encouraged price -watching consumers to
switch, obliquely referring to the Coca -Cola standard of six ounces
a bottle for the price of five cents (a nickel), instead of the 12
ounces Pepsi sold at the same price. Coming at a time of economic
crisis, the campaign succeeded in boosting Pepsi's status. In 1936
alone 500,000,000 bottles of Pepsi were consumed. From 1936 to
1938, Pepsi-Cola's profits doubled.

Pepsi's success under Guth came while the Loft Candy business was
faltering. Since he had initially used Loft's finances and facilities to
establish the new Pepsi success, the near -bankrupt Loft Company
sued Guth for possession of the Pepsi-Cola company. A long legal
battle, Guth v. Loft, then ensued, with the case reaching the
Delaware Supreme Court and ultimately ending in a loss for Guth.
Niche Marketing
Walter Mack was named the new President of Pepsi -Cola and
guided the company through the 1940s. Mack, who supported
progressive causes, noticed that the company's strategy of using
advertising for a general audience either ignored Americans or used
ethnic stereotypes in portraying blacks. He realized African
Americans were an untapped niche market and that Pepsi stood to
gain market share by targeting its advertising directly towards
them. To this end, he hired Hennan Smith, advertising executive
"from the Negro newspaper field" to lead an all-black sales team,
which had to be cut due to the onset of World War II. In 1947,
Mack resumed his efforts, hiring Edward F. Boyd to lead a twelve-
man team. They came up with advertising portraying black
Americans in a positive light, such as one with a smiling mother
holding a six pack of Pepsi while her son (a young Ron Brown, who
grew up to be Secretary of Commerce) reaches up for one.
Another ad campaign, titled "Leaders in Their Fields", profiled
twenty prominent African Americans such as Nobel Peace
Prize winner Ralph and photographer Gordon Parks.

Boyd also led a sales team composed entirely of blacks around the
country to promote Pepsi. Racial segregation and laws were still in
place throughout much of the U.S.; Boyd's team faced a great deal
of discrimination as a result, from insults by Pepsi co-workers to
threats by the Ku Klux Klan. On the other hand, it was able to
use racism as a selling point, attack ing Coke's reluctance to hire
blacks and support by the chairman of Coke for segregationist
Governor Herman Talmadge. As a result, Pepsi's market share as
compared to Coke's shot up dramatically. After the sales team
visited Chicago, Pepsi's share in the city overtook that of Coke for
the first time.

This focus on the market for black people caused some
consternation within the company and among its affiliates. It did
not want to seem focused on black customers for
fear white customers would be pushed away. In a meeting at
the Waldorf-Astoria Hotel, Mack tried to assuage the 500 bottlers in
attendance by pandering to them, saying: "We don't want it to
become known as a nigger drink." After Mack left the company in
1950, support for the black sales team faded and it was cut.

Current Situation

PepsiCo, Inc. is one of the most successful consumer products
companies in the world, with 2000 revenues of over $20 billion and
125,000 employees. The company consists of: Frito -Lay Company,
the largest manufacturer and distributor of snack chips; Pepsi -Cola
Company, the second largest soft drink business and Tropicana
Products, the largest marketer and producer of branded juice.
PepsiCo brands are among the best known and most respected in the
world and are available in about 190 countries and territories.
PRODUCTS OF PEPSI
Pepsi
Pepsi is a carbonated soft drink that is produced and manufactured
by PepsiCo. Created and developed in 1898 and introduced as
"Brad's Drink", it was later renamed as Pepsi-Cola on
June 16, 1903, then to Pepsi in 1961.It is one of the most well
known brands in the world today available in over 160 countries.

Mirinda

Mirinda is a brand of soft drink originally created in Spain,
but with global distribution. The word Mirinda means
"admirable, wonderful" in Esperanto. It is available in fruit
varieties including
orange, grapefruit, apple, strawberry, raspberry, pineapple,
pomegranate, banana, lemon, hibiscus, Guarana, tangerine,
and grape flavours as well as Tamarind. A "citrus" flavour is
also available in certain areas of the Middle East.

Mountain Dew

Mountain Dew s a carbonated soft drink brand produced and
owned by PepsiCo. The original formula was invented in the
1940s by Tennessee beverage bottlers Barney and Ally
Hartman and was first marketed in Marion,
Virginia, Knoxville and Tennessee. The Mountain Dew
brand and production rights were acquired by the Pepsi -Cola
company in 1964, at which point its distribution expanded
more widely across the United States.

7UP

7UP is a brand of a lemon-lime flavored non-caffeinated soft
drink. The rights to the brand are held by Dr Pepper Snapple
Group in the United States, and PepsiCo (or its licensees) in the rest
of the world.
COCA-COLA
                     AN INTRODUCTION
Coca-Cola is a carbonated soft drink sold in stores, restaurants,
and vending machines in more than 200 countries. It is produced
by The Coca-Cola Company of Atlanta, Georgia, and is often
referred to simply as Coke. Originally intended as a patent
medicine when it was invented in the late 19th century by John
Pemberton, Coca-Cola was bought out by businessman Asa Griggs
Candler, whose marketing tactics led Coke to its dominance of the
world soft-drink market throughout the 20th century.

The company produces concentrate, which is then sold to licensed
Coca-Cola bottlers throughout the world. The bottlers, who hold
territorially exclusive contracts with the company, produce finished
product in cans and bottles from the concentrate in combination
with filtered water and sweeteners. The bottlers then sell, distribute
and merchandise Coca-Cola to retail stores and vending machines.
Such bottlers include Coca-Cola Enterprises, which is the largest
single Coca-Cola bottler in North America and Western Europe. The
Coca-Cola Company also sells concentrate for soda fountains to
major restaurants and food service distributors.

The Coca-Cola Company has, on occasion, i ntroduced other cola
drinks under the Coke brand name. The most common of these
is Diet Coke, with others including Caffeine-Free Coca-Cola, Diet
Coke Caffeine-Free, Coca-Cola Cherry, Zero, Coca, and special
versions with lemon, lime or coffee.

Based on Interbrand's best global brand 2011, Coca-Cola was the
world's most valuable brand.

The Coca-Cola Company believes our business has always been
based on the trust consumers everywhere place in us —trust that is
earned by what we do as a corporate citizen and by our abi lity to
live our values as a commercial enterprise, there is much in our
world to celebrate, refresh, strengthen and protect. Through our
actions as local citizens, we strive every day to refresh the
marketplace, enrich the workplace, preserve the environm ent and
strengthen our communities. At the heart of our business is the trust
consumers place in us. They rightly expect that we are managing
our business according to sound ethical principles, that we are
enhancing the health of our communities, and that we are using
natural resource responsible.

The Coca Cola Company started operations in India in 1993 after an
absence of 16 years. To reach India's 300 million soft -drink
consumers, the company distributes its products through over
700,000 retail outlets Coca Cola India directly employs over 7000
workers. Over the past nine years, the company has invested over
US$ 827 million in India with over US$ 800 million in its bottling
subsidiary. Significant growth has come from Kinley, its packaged
water brand, which claims to have around 35 per cent share of the
packaged drinking water market

It is the world's favourite drink. It is the world's most valuable
brand and the most recognizable word across the world after ‗OK‘.
Coca-Cola has a truly remarkable heritage .

From a humble beginning in 1886, it is now the flagship brand of
the largest manufacturer, marketer and distributor of non -alcoholic
beverages in the world.

In India, Coca-Cola was the leading soft-drink till 1977 when govt.
policies necessitated its departure. Coca-Cola made its return to the
country in 1993 and made significant investments to ensure that the
beverage is available to more and more people, even in the remote
and inaccessible parts of the nation. Coke had entered the Indian
soft drinks market way back in the 1970s.

The company was the market leader till 1977, when it had to exit
the country following policy changes regarding MNCs operating in
India. Over the next few years, a host of local brands emerged such
as Campa Cola, Thumps Up, Gold Spot and Limca etc. However,
with the entry of Pepsi and Coke in the 1990s, almost the entire
market went under their control.
COCA-COLA
                         the HISTORY
The first Coca-Cola recipe was invented in a drugstore in
Columbus, Georgia by John Pemberton, originally as a coca wine
called Pemberton's French Wine Coca in 1885. He may have been
inspired by the formidable success of Vin Mariani, a European coca
wine.

In 1886, when Atlanta and Fulton County passed prohibition
legislation, Pemberton responded by developing Coca -Cola,
essentially a non-alcoholic version of French Wine Cola . The first
sales were at Jacob's Pharmacy in Atlanta, Georgia, on May 8,
1886. It was initially sold as a patent medicine for five cents a glass
at soda fountains, which were popular in the United States at the
time due to the belief that carbonated water was good for the health.
Pemberton claimed Coca-Cola cured many diseases, including
morphine addiction, dyspepsia, neurasthenia, headache, and
impotence. Pemberton ran the first advertisement for the beverage
on May 29 of the same year in the Atlanta Journal.

By 1888, three versions of Coca-Cola—sold by three separate
businesses—were on the market. Asa Griggs Candler acquired a
stake in Pemberton's company in 1887 and incorporated it as the
Coca Cola Company in 1888. The same year, while suffering from
an ongoing addiction to morphine, Pemberton sold the rights a
second time to four more businessmen: J.C. Mayfield, A.O.
Murphey, C.O. Mullahy and E.H. Bloodworth. Meanwhile,
Pemberton's alcoholic son Charley Pemberton began selling his own
version of the product.

John Pemberton declared that the na me "Coca-Cola" belonged to
Charley, but the other two manufacturers could continue to use the
formula. So, in the summer of 1888, Candler sold his beverage
under the names Yum Yum and Koke.

After both of them failed to catch on, Candler set out to establi sh a
legal claim to Coca-Cola in late 1888, in order to force his two
competitors out of the business. Candler purchased exclusive rights
to the formula from John Pemberton, Margaret Dozier and Woolfolk
Walker. However, in 1914, Dozier came forward to claim her
signature on the bill of sale had been forged, and subsequent
analysis has indicated John Pemberton's signature was most likely a
forgery as well.

In 1892 Candler incorporated a second company, The Coca-Cola
Company (the current corporation), and in 1910 Candler had the
earliest records of the company burned, further obscuring its legal
origins. By the time of its 50th anniversary, the drink had reached
the status of a national icon in the USA. In 1935, it was certified
kosher by Rabbi Tobias Geffen, after the company made minor
changes in the sourcing of some ingredients.

Coca-Cola was sold in bottles for the first time on March 12, 1894.
The first outdoor wall advertisement was painted in the same year
as well in Georgia. The Cans of Coke first appeared in 1955. The
first bottling of Coca-Cola occurred in Vicksburg, Mississippi, at
the Biedenharn Candy Company in 1891 .

Its proprietor was Joseph A. Biedenharn. The original bottles were
Biedenharn bottles, very different from the much later hobble -skirt
design that is now so familiar. Asa Candler was tentative about
bottling the drink, but two entrepreneurs from Chattan ooga,
Tennessee, Benjamin F. Thomas and Joseph B. Whitehead, proposed
the idea and were so persuasive that Candler signed a contract
giving them control of the procedure for only one dollar.

Candler never collected his dollar, but in 1899 Chattanooga beca me
the site of the first Coca-Cola bottling company. The loosely termed
contract proved to be problematic for the company for decades to
come. Legal matters were not helped by the decision of the bottlers
to subcontract to other companies, effectively beco ming parent
bottlers.

Twentieth Century Landmarks

By the time of its 50th anniversary, the soft drink had reached the
status of a national icon in the USA. In 1935, it was
certified kosher by Atlanta Rabbi Tobias Geffen, after the company
made minor changes in the sourcing of some ingredients.

The longest running commercial Coca -Cola soda fountain anywhere
was Atlanta's Fleeman's Pharmacy, which first opened its doors in
1914. Jack Fleeman took over the pharmacy from his father and ran
it till 1995; closing it after 81 years.

On July 12, 1944, the one-billionth gallon of Coca-Cola syrup was
manufactured by The Coca-Cola Company. The Cans of Coke first
appeared in 1955.

New Coke
On April 23, 1985, Coca-Cola, amid much publicity, attempted to
change the formula of the drink with "New Coke". Follow -up taste
tests revealed that most consumers preferred the taste of New Coke
to both Coke and Pepsi, but Coca-Cola management was unprepared
for the public's nostalgia for the old drink, leading to a backlash.
The company gave in to protests and returned to a variation of the
old formula, with high-fructose replacing cane sugar, under the
name Coca-Cola Classic on July 10, 1985.

Twenty-first Century

On February 7, 2005, the Coca-Cola Company announced that in the
second quarter of 2005 they planned to launch a Diet Coke product
sweetened with the artificial sweetener sucralose ("Splenda"), the
same sweetener currently used in Pepsi One. On March 21, 2005, it
announced another diet product, Coca-Cola Zero, sweetened partly
with a blend of Aspartame and Acesulfame potassium. In 2007,
Coca-Cola began to sell a new "healthy soda": Diet Coke with
vitamins B6, B12, Magnesium, Niacin , and zinc, marketed as "Diet
Coke Plus."

On July 5, 2005, it was revealed that Coca -Cola would resume
operations in Iraq for the first time since the Arab League boycotted
the company in 1968.
In April 2007, in Canada, the name "Coca -Cola Classic" was
changed back to "Coca-Cola." The word "Classic" was truncated
because "New Coke" was no longer in production, eliminating the
need to differentiate between the two. The formula remained
unchanged.

In January 2009, Coca-Cola stopped printing the word "Classic" on
the labels of 16-ounce bottles sold in parts of the southeastern
United States. The change is part of a larger strategy to rejuvenate
the product's image.

In November 2009, due to a dispute over wholesale prices of Coca -
Cola products, Costco stopped restocking its shelves with Coke and
Diet Coke.
PRODUCTS OF COCA-COLA
Coca-Cola
Coca-Cola is a carbonated soft drink sold in stores, restaurants,
and vending machines in more than 200 countries. It is produced
by The Coca-Cola Company of Atlanta, Georgia, and is often
referred to simply as Coke.

Thumps-up
Thumps Up is a brand of cola in India. It was introduced in 1977 to
offset the expulsion of The Coca-Cola Company from India. The
brand was bought out by Coca-Cola who re-launched it in order to
compete against Pepsi.

Sprite
Sprite is a transparent, lemon-lime flavoured, caffeine-free soft
drink, produced by the Coca-Cola Company. It was introduced in
the United States in 1961. This was Coke's response to the
popularity of 7 UP. It comes in a primarily silver, green, and blue
can or a green transparent bottle with a primarily green and blue
label.

Fanta
Fanta is a global brand of fruit-flavoured carbonated drinks from
the Coca-Cola Company. There are over 100 flavours worldwide.
The drink debuted in Nazi Germany in 1941 and originally sold
only in Europe.

Maaza
Maaza is a Coca-Cola fruit drink brand marketed in India and
Bangladesh, the most popular drink being the mango variety so
much that over the years, the Maaza brand has become synonymous
with Mango.Coca-Cola has also launched Maaza in orange and
pineapple variants.
PEPSI VS COCA-COLA
                     A Comparison
Taste

Coca-Cola is the original cola, while there isn't a huge difference
in taste; Pepsi mirrored their cola after Coke's, being just
different enough in taste to not actually be the same drink.

Similarities

Pepsi-Cola and Coca Cola Classic are both carbonated cola
beverages.

Sweetness

Pepsi tastes sweeter than Coca-Cola, This is the reason why
many prefer Pepsi over Coca-Cola in a blind test but may prefer
Coke when drinking an entire can.

Carbonation

Coca-Cola has more carbonation than Pepsi depending on wh at
region you are in. It was said that depending on where each one
was made the amount of carbonation in them will be different
therefore proving that neither Coca -Cola nor Pepsi have more
carbonation.
PEPSI VS COCA-COLA
                        THE COLA WAR
The Cola Wars are a campaign of mutually-targeted television
advertisements and marketing campaigns since the 1980s to present
between soft drink manufacturers Coca-Cola Company and PepsiCo
Incorporated. According to Consumer Reports, in the 1970 s, the
rivalry continued to heat up the market. Pepsi conducted blind taste
tests in stores, in what was called the " Pepsi Challenge".

These tests suggested that more consumers preferred the taste of
Pepsi (which is believed to have more lemon oil, less orange oil,
and uses vanillin rather than vanilla) to Coke. The sales of Pepsi
started to climb, and Pepsi kicked off the "Challenge" across the
nation. This became known as the " Cola Wars."

In 1985, The Coca-Cola Company, amid much publicity, changed its
formula. The theory has been advanced that New Coke, as the
reformulated drink came to be known, was invented specifically in
response to the Pepsi Challenge. However, a consumer backlash led
to Coca-Cola quickly introducing a modified version of the original
formula (removing the expensive Haitian lime oil and changing the
sweetener to corn syrup) as Coke "Classic".

The Beginning

1975 heralded the ‗Pepsi Challenge‘, a landmark marketing
strategy, which convinced millions of consumers that the taste of
Pepsi was superior to Coke. Simultaneously, Pepsi Light, with a
distinctive lemon taste, was introduced as an alternative to
traditional diet colas.

In 1983 Coke launched aspartame/saccharin blend Diet Coke. In
response in 1989 Pepsi-Cola introduced an exciting new flavor,
Wild Cherry Pepsi. Thus Diet Pepsi's 'The Other Challenge'
campaign was based around a 54 -46% lead over Diet Coke in
independently researched taste tests in Australia.
It was only in 1996 that Pepsi unveiled a revolutionary 'blue' look
worldwide 'to transform the image and attitude' of one of the
world's best-known brands. 'Pepsi Blue represents a quantum leap
into the future and redefines how the Cola Wars will be fought and
won in the 21st Century.'

Competition
Many of the brands available from the three largest soda producers,
The Coca-Cola Company and PepsiCo are intended as direct,
equivalent competitors. The following chart lists these competitors
by type or flavour of drink.


Flavour/Type                 PepsiCo            The Coca-
                                                  Cola
                                                Company

Cola                    Pepsi                Coca-Cola

Diet Cola               Diet Pepsi / Pepsi   Diet Coke / Coca-
                        Light,               Cola Light,
                        Pepsi ONE,           Tab,
                        Pepsi Max            Coca-Cola Zero

Cherry-flavoured cola   Pepsi Wild Cherry    Coca-Cola Cherry

"Pepper"-style          Dr Slice             Mr. Pibb / Pibb Xtra

Orange                  Mirinda,             Fanta,
                        Tropicana Twister,   Minute Maid
                        Tango,
                        Slice

Lemon-lime              Teem,                Sprite,
                        Sierra Mist,         Lemon & Paeroa
                        7 Up (in countries
                        other than US)
Flavour/Type           PepsiCo            The Coca-
                                          Cola
                                          company
Root beer              Mug Root Beer      Barq's
                                          Ramblin' Root Beer

Cream soda             Mug Cream Soda     Barq's Red Creme
                                          Soda

Juices                 Tropicana,         Minute Maid,
                       Dole               Fruitopia,
                                          Simply Orange

Iced tea               Lipton,            Nestea,
                       Brisk              Gold Peak Tea


Sports drinks          Gatorade,          PowerAde,
                       Propel             Aquarius,
                                          Vitamin Water

Energy drinks          AMP                Full Throttle,
                                          NOS,
                                          Relentless,
                                          Monster

Mineral Waters         Aquafina           Kinley,
                                          Dasani



Marketing Campaigns
Coca-Cola and Pepsi-Cola focused particularly on pop stars;
notable soft drink promoters included Mariah Carey, KISS, Tina
Turner, Britney Spears, David Bowie, Rod Stewart, Jim
Varney, Elvis Presley, Michael Jackson, Madonna, and Ray
Charles (for Pepsi) and Whitney Houston, Paula Abdul, Weird Al
Yankovic, George Michael, Christina Aguilera, Max Headroom,
and Elton John (for Coca-Cola).

Coca-Cola
One example of a heated exchange that occurred during the Cola Wars was
Coca-Cola making a strategic retreat on July 11, 1985, by announcing its plans
to bring back the original 'Classic' Coke after recently introducing New Coke.

Pepsi
Pepsi ads often focused on celebrities choosing Pepsi over Coke,
supporting Pepsi's positioning as "The Choice of a New
Generation." Pepsi generation was created focusing on the user of
the drink, never the drink. Coke always focused on the drink. Pepsi
focused on the person using it. They showed people riding dirt
bikes, waterskiing, or kite flying, hang gliding — doing different
things. And at the end of it there would always be a Pepsi as a
reward.
This all happened when color television was first coming in. They
were the first company to do lifestyle marketing. The first and the
longest-running lifestyle campaign were and still is Pepsi. In 1975,
Pepsi began showing people doing blind taste tests called Pepsi
Challenge in which they preferred one product over the other, and
then they began hiring more and more popular spokespersons to
promote their products. In their hope to win the Cola Wars a
Concorde was painted blue with PEPSI written across it in white
lettering. In the late 1990s, Pepsi launched its most successful long -
term strategy of the Cola Wars, Pepsi Stuff. Consumers were invited
to "Drink Pepsi, Get Stuff" and collect Pepsi Points on billions of
packages and cups. They could redeem the points for free Pepsi
lifestyle merchandise. After researching and testing the program for
over two years to ensure that it resonated with consumers, Pepsi
launched Pepsi Stuff, which was an instant success. Tens of
millions of consumers participated. Pepsi outperformed Coke during
the summer of the Atlanta Olympics - held in Coke's hometown -
where Coke was a lead sponsor of the Games.
Due to its success, the program was expanded to include Mountain
Dew, and into Pepsi's international markets worldwide. The
company continued to run the program for many years, continually
innovating with new features each year.
The Pepsi Stuff promotion became the subject of a lawsuit. In one
of the many commercials, Pepsi showed a young man in the cockpit
of a Harrier Jump Jet. Below ran the caption "Harrier Jet: 7 million
Pepsi Points." There was a mechanism for buying additional Pepsi
Points to complete a Pepsi Stuff order. John Leonard, of Seattle,
Washington, sent in a Pepsi Stuff request with the maximum amount
of points and a check for over $700,000US to make up for the extra
points he needed. Pepsi did not accept the request and Leonard file d
suit. The judgment was that a reasonable person viewing the
commercial would realize that Pepsi was not, in fact, offering a
Harrier Jet. In response to the suit, Pepsi added the words "Just
Kidding" under the portion of the commercial featuring the jet as
well as changing the "price" to 700 million Pepsi points
Coca-Cola and Pepsi engaged in a " cyber-war" with the re-
introduction of Pepsi Stuff in 2005 & Coca -Cola retaliated with
Coke Rewards. This cola war has now concluded, with Pepsi Stuff
ending its services and Coke Rewards still offering prizes on their
website. Both were loyalty programs that give away prizes and
product to consumers after collecting bottle caps and 12 or 24 pack
box tops, then submitting codes online for a certain number of
points. However, Pepsi's online partnership with Amazon allowed
consumers to buy various products with their "Pepsi Points", such
as mp3 downloads. Both Coca-Cola and Pepsi previously had a
partnership with the iTunes Store.
In Space
In 1985, Coca-Cola and Pepsi were launched into space aboard
the Space Shuttle Challenger onSTS-51-F. The companies had
designed special cans (officially the Carbonated Beverage
Dispenser Evaluation payload or CBDE) to test packaging and
dispensing techniques for use in zero G conditions. The experiment
was classified a failure by the shuttle crew, primarily due to the
lack of both refrigeration and gravity.
The "Coca-Cola Space Dispenser" (Fluids Generic Bio -processing
Apparatus-1, or FGBA-1) was designed to provide astronauts the
opportunity to enjoy Coca-Cola and Diet Coke in the weightless
environment of space, and to "provide baseline data on changes in
astronauts' taste perception of beverages consumed in
microgravity." It held 1.65 liters each of Coca -Cola and Diet Coke.
An astronaut would dispense the carbonated drink of choice into a
"Fluids Transfer Unit" or sealed drinking cup through a quick
connect on the dispenser. To save power, the dispenser would chill
the liquid on demand via cooling coils between the storage
container and the quick connect fitting. The FGBA -1 and 18 of the
"Fluid Transfer Units" flew aboard the Space Shuttle Discovery in
1995. (STS-63)
Further development led to a Coca -Cola fountain dispenser (Fluids
Generic Bio-processing Apparatus-2 or FGBA-2) intended as "a test
bed to determine if carbonated beverages can be produce d from
separately stored carbon dioxide, water and flavored syrups and
determine if the resulting fluids can be made available for
consumption without bubble nucleation and resulting foam
formation". This unit dispensed PowerAde sports drink in addition
to Coca-Cola and Diet Coke. This unit flew on STS-
77 aboard Space Shuttle Endeavour in 1996. Unfortunately, the
FGBA-2 did not work as expected.
Second Cola War
During the 1990s, a "second cola war" was reported in the United
Kingdom. This time it was due to the launch of Virgin Cola, as well
as Sainsbury's store brand Classic Cola, which, unlike most store
brand colas, was designed to look like a top product worthy of
competition. For a few years both colas were competitive with
Coca-Cola and Pepsi; at one point Coca -Cola even sued Sainsbury's
claiming the design of the Classic Cola can was too similar to
Coke's. However, today, both Virgin and Cla ssic Cola are far
behind the two major brands.
The high-publicity marketing also continued into the 1990s. In
1997, the Spice Girls (then at their peak) signed a multi -million
pound sponsorship deal with Pepsi. They starred in
three Pepsi commercials; released two limited edition singles with
Pepsi, "Move Over" and "Step to me"; featured on Pepsi packaging;
and performed two live concerts in Istanbul organized and
sponsored by the company.


Cola Wars today


Pepsi’s New Strategy: Better-For-You Products
 In 2007, Indra Nooyi became the fifth CEO in PepsiCo's 44 -year
history, and the game completely changed. A former management
consultant, she decided not to duke it out directly with Coke.
Instead, she‘s trying to redefine the playing field...

U.S. Consumption of carbonated soft drinks has steadily declined in
the past decade.
Part of that comes down to the array of alternative beverages the
market now offers. Part of it comes down to health concerns in a
nation with an obesity problem.
But rather than buck the trend, Ms. Nooyi seeks to refocus Pepsi.
―Lifestyles have changed,‖ she notes, ―And we have to modify our
products.‖

In that spirit, she‘s focusing the company more on water, juices,
teas and sports drinks.
Pepsi‘s top brands in those areas include A quafina and Gatorade.
And while it trails in soft drink sales, it leads the world in ready -to-
drink teas through Lipton, while its Tropicana wins out in
juices/nectars.

The company is betting big on creating healthy foods through its
Quaker Oats, Gatorade and Tropicana divisions. And it just began
the Global Nutrition Group to deliver breakthrough products.
Nooyi says the new Group ―is part of our long -term strategy to grow
our nutrition business from about $10 billion in revenues today to
$30 billion by 2020.

To further that goal, Pepsi hired several well -known nutritionists to
direct its efforts at reducing fat, sodium and sugar in its products.
Already, Lay‘s potato chips have 25% less sodium… and by 2011,
they‘ll be made from 100% natural ingredients.
As Caroline Levy, a CLSA analyst, noted, ―PepsiCo is currently
focused on better-for-you‖ products.

Coke’s Consistent Strategy Wins the Cola War
Meanwhile, Coca-Cola doesn‘t seem to care about what Pepsi has
accepted. CEO Muhtar Kent not only continues to focus on selling
soft drinks globally, but even vows to rebuild Coke sales in the U.S.
market.
     And admittedly, Coke‘s beverage volume in North America
     dropped only 2% last year. 2009 was extremely difficult
     economically on top of a relatively cool summer.
In comparison, Pepsi‘s beverage volume in the same region
    plunged 8%.
According to Beverage Digest, this makes Coca -Cola brand the
uncontested U.S. heavyweight.
Indeed, looking at all carbonated soft drinks, Coke brands
commanded 41.9% of the total market last year compared to
PepsiCo‘s 29.9%.
The same goes for the companies‘ flagship brands. Through 2009,
Coca-Cola commanded 17% of the U.S. soft drink market; Pepsi
held only 9.9%. And while both brands have been declining, Pepsi is
doing so at a slightly faster rate.


Pepsi Admits Defeat… Goes On New Health Kick
As far as Pepsi is concerned, the cola wars are over. It now needs to
focus on convincing investors that it has the right focus in this new
health kick.
Currently, the Global Nutrition Group is little but a nice marketing
tool. Will Pepsi really develop healthier foods and drinks while still
coming up with new types of chips and soda flavours is a question.
It recently reduced the top end of its guidance for earnings growt h
this year from 13% to 11%. This may be due to increased
investment in nutrition… or because of a difficult, competitive
global environment.
Coke, among others, continues to steal market share away from
Pepsi.
Carbonated beverages still produce much of th e company‘s sales
and for now, they‘re still key to Pepsi‘s future health.
PEPSI VS COCA-COLA
        Which Cola brand is the Better
                 Investment?
A study found that 80 percent of people can differentiate a sample
of Coca-Cola from a sample of Pepsi. The same study found that if
you give people three samples they can only accurately guess which
samples are which 33 percent of the time. Th at‘s the same odds as
randomly guessing.
Malcolm Gladwell called this the Triangle Problem in his
book Blink: the Power of Thinking without Thinking . The idea is
that the two products are much more similar than they are different.
Some people even theorize that the preferences than the actual soda.
This same concept can be extrapolated to each company‘s respective
stock.

Coke vs. Pepsi –Dividends
Both Pepsi and Coke are favorites of super investor Warren Buffett.
That‘s because both stocks have had strong growth and both are
cash cows when it comes to dividends.




One interesting note not apparent in the above table above is that
Coca-Cola has raised its dividend in a slower, more consistent
manner. Pepsi, on the other hand, has significantly upped their
dividend distribution over the last few years.
    In 2004, Pepsi offered a quarterly dividend of 16 cents when
    Coke was offering a quarter.
    Coke has increased annual dividends for 49 years running.
    Pepsi also has a streak of increasing their annual dividend
    for 39 straight years.
    Coke‘s stock price has grown in value by over 50 percent
    since the beginning of 2009. Pepsi‘s stock has grown by
    about 40 percent in the same time.
In terms of market share, Coke owns the top two spots in the cola
industry – Coke and Diet Coke- with Pepsi‘s flagship cola coming
in at third.
Pepsi does have a slight advantage over Coke in diversification.
     Pepsi has snack food brands such as Frito -Lay and Quaker
     under its umbrella. They also own the brands that make
     beverages such as Gatorade, Tropicana and Naked Juices .
    While Coke hasn‘t tapped the snack food market, they do
    have some beverage diversification. Dasani bottled water,
    PowerAde and Minute Maid juices are all under Coca -Cola‘s
    umbrella.
PEPSI VS COCA-COLA
                    PRESENCE IN INDIA
PEPSI
PepsiCo entered India in 1989 and has grown to become one of the
country‘s leading food and beverage companies. One of the largest
multinational investors in the country, PepsiCo has established a
business which aims to serve the long term dyna mic needs of
consumers in India.

PepsiCo India and its partners have invested more than U.S.$1
billion since the company was established in the country. PepsiCo
provides direct and indirect employment to 150,000 people
including suppliers and distributors.

PepsiCo nourishes consumers with a range of products from treats
to healthy eats that deliver joy as well as nutrition and always, good
taste. PepsiCo India‘s expansive portfolio includes iconic
refreshment beverages Pepsi, 7 UP, Mirinda and Mountain Dew, in
addition to low calorie options such as Diet Pepsi, hydrating and
nutritional beverages such as Aquafina drinking water, isotonic
sports drinks - Gatorade, Tropicana100% fruit juices, and juice
based drinks – Tropicana Nectars, Tropicana Twister and Slice.
Local brands – Lehar Evervess Soda, Dukes Lemonade and Mangola
add to the diverse range of brands.

PepsiCo‘s foods company, Frito -Lay, is the leader in the branded
salty snack market and all Frito Lay products are free of trans -fat
and MSG. It manufactures Lay‘s Potato Chips; Cheetos extruded
snacks, Uncle Chipps and traditional snacks under the Kurkure and
Lehar brands.

The company‘s high fibre breakfast cereal, Quaker Oats, and low fat
and roasted snack options enhance the healthf ul choices available to
consumers. Frito Lay‘s core products, Lay‘s, Kurkure, Uncle Chipps
and Cheetos are cooked in Rice Bran Oil to significantly reduce
saturated fats and all of its products contain voluntary nutritional
labeling on their packets.

The group has built an expansive beverage and foods business. To
support its operations, PepsiCo has 43 bottling plants in India, of
which 15 are company owned and 28 are franchisee owned. In
addition to this, PepsiCo‘s Frito Lay foods division has 3 state -of-
the-art plants. PepsiCo‘s business is based on its sustainability
vision of making tomorrow better than today. PepsiCo‘s
commitment to living by this vision every day is visible in its
contribution to the country, consumers and farmers.

COCA-COLA
Coca-Cola, the corporation nourishing the global community with
the world‘s largest selling soft drink concentrates since 1886,
returned to India in 1993 after a 16 year hiatus, giving new thumbs
up to the Indian soft drink market. In the same year, the Company
took over ownership of the nation‘s top soft -drink brand and
bottling network. It‘s no wonder our brands have assumed an iconic
status in the minds of the world‘s consumers

Ever since, Coca-Cola India has made significant investments to
build and continually consolidate its business in the country,
including new production facilities, waste water treatment plants,
distribution systems, and marketing channels.

Coca-Cola India is among the country‘s top international investors,
having invested more than US$ 1 billion in India in the first decade,
and further pledged another US$100 million in 2003 for its
operations.

The Company has shaken up the Indian carbonated drinks market
greatly, giving consumers the pleasure of world -class drinks to fill
up their hydration, refreshment, and nutrition needs. It has also
been instrumental in giving an exponential growth to the country‘s
job listings.

With virtually all the goods and services required to produce and
market Coca-Cola being made in India, the business system of the
Company directly employs approximately 6,000 people, and
indirectly creates employment for more than 125,000 people in
related industries through its vast procurement, supply, and
distribution system.


The Indian operations comprises of 50 bottling operations, 25
owned by the Company, with another 25 being owned by
franchisees. Apart that, a network of 21 contract packers
manufactures a range of products for the Company.

On the distribution front, 10 -tonne trucks – open bay three-wheelers
that can navigate the narrow alleyways of Indian cities – constantly
keep our brands available in every nook and corner of the country‘s
remotest areas.
PEPSI VS COCA-COLA
                         Marketing
Control of market share is the key issue in this c ase study. The
situation is both Coke and Pepsi are trying to gain market share in
this beverage market, which is valued at over $30 billion a year.
Just how this is done in such a competitive market is the underlying
issue.

The facts are that each company is coming up with new products
and ideas in order to increase their market share. The creativity and
effectiveness of each company's marketing strategy will ultimately
determine the winner with respect to sales, profits, and customer
loyalty. Not only are these two companies constructing new ways to
sell Coke and Pepsi, but they are also thinking of ways in which to
increase market share in other beverage categories. Although the
goal of both companies is exactly the same, th e two companies rely
on somewhat different marketing strategies.

Pepsi has always taken the lead in developing new products, but
Coke soon learned their lesson and started to do the same. Coke
hired marketing executives with good track records. Coke also
implemented cross training of managers so it would be more
difficult for cliques to form within the company.

On the other hand, Pepsi has always taken more risks, acted rapidly,
and was always developing new advertising ideas . Both companies
have also relied on finding new markets, especially in foreign
countries.

In the foreign markets, Coke has been more successful than Pepsi.
For example, in Eastern Europe, Pepsi has relied on a barter system
that proved to fail. However, in certain countries that allo w direct
comparison, Pepsi has beat Coke. In foreign markets, both
companies have followed the marketing concept by offering
products that meet consumer needs in order to gain market share.
For instance, in certain countries, consumers wanted a soft drink
that was low in sugar, yet did not have a diet taste or image. Pepsi
responded by developing Pepsi Max.
These companies in trying to capture market share have relied on
the development of new products. In some cases the products have
been successful. However, at other times the new products have
failed. For Coke, changing their original formula and introducing it
as ―New Coke‖ was a major failure . The new formula hurt Coke as
consumers requested Classic Cokes‘ return.

Pepsi has also had its share of failu res. Some of their failures
included: Pepsi Light, Pepsi Free, Pepsi AM, and Crystal Pepsi. One
solution to increasing market share is to carefully follow consumer
wants in each country.

The next step is to take fast action to develop a product that meets
the requirements for that particular region. Both companies cannot
just sell one product; if they do they will not succeed. They have to
always be creating and updating their marketing plans and products.
The companies must be willing to accommodate their ―target
markets‖.

Gaining market share occurs when a company stays one -step ahead
of the competition by knowing what the consumer wants. My
recommendation is to make sure the company is always doing
market research. This way they are able to get as much feedback as
possible from consumers.

Next, analyze this data as fast as possible, and then develop the new
product based upon this data. Once the product is developed, get it
to the marketplace quickly where time is a very critical factor.
PEPSI VS COCA-COLA
             Advertising Strategies
PEPSI
For over 100 years, Pepsi-Cola has produced some of the finest soft
drink ads available anywhere in the world. From today's "Joy of
Pepsi," as sung by Britney Spears, to yesterday's "Nickel, Nicke l"
(1939), our ads are as memorable as the products we produce.

Some highlights of the Ads are given
below.
1999: The new campaign highlights the popular soft drink that goes
with everything from food to fun.


• Pepsi's last major campaign change was in 1 999, when it debuted
"The Joy of Cola," which became "The Joy of Pepsi" in 2000.


• Pepsi updates its look with a bolder, more contemporary image
that better captures the brand's youthful attitude.


• Mountain Dew offers its third line extension with Mount ain Dew
LiveWire, combining the unique citrus taste of Mountain Dew with
a bold orange flavor.


• Pepsi's blockbuster summer promotion "Pepsi Play for a Billion"
gives 1,000 consumers the chance to play for $1 billion on a live
television show on The WB. A guaranteed $1 million prizewinner
will be chosen and will then have a chance to win $1 billion without
forfeiting the $1 million prize.


• In September, Richard Bay, a 42 -year-old high school teacher
from Princeton, West Virginia, became a millionaire on "Pepsi Play
for a Billion" on The WB. Bay and the television audience then held
their collective breath to see if he would also win the billion
dollars. Instead, his number was two digits off the billion -dollar
number, but Bay was still pleased with his co ol million.

2000: The popular Pepsi Challenge makes its return , and consumers
across the country let their taste decide the best cola and one -
calorie cola. Helping launch the Challenge is two of baseball's top
sluggers – Sammy Sosa and Ken Griffey Jr.


• On the airwaves, the "Joy of Cola" campaign is a hit as "Pepsi
Girl" Hallie Eisenberg rocks with pop star Faith Hill and perennial
rockers KISS.


• Among those doing the Dew is hip -hop artist Busta Rhymes, and
Aquafina launches it‘s first-ever television advertising campaign.

2001: The popular "Joy of Cola" tagline gets an update, becoming
the "Joy of Pepsi." Three months later, Britney Spears stars in a
blockbuster Pepsi commercial that breaks during the Academy
Awards. An hour before the telecast, the high -energy spot debuts
online, where more than 2 million fans click their way to Britney's
own version of the "Joy of Pepsi."

Thirsty consumers are invited to "discover a sensation as real as the
streets," when cherry-flavored Mountain Dew Code Red is
introduced.

Pepsi puts a little twist on a great thing, unveiling the first national
TV commercial for new lemon-flavored Pepsi Twist.

2002: In March, supermodel Cindy Crawford helps introduce a new
look for Diet Pepsi. The updated graphics better represent the
brand's light, crisp, refreshing qualities.


• Pepsi-Cola teams up with the National Football League, b ecoming
its Official Soft Drink Sponsor.
• Pepsi declares, "It's a blue thing," and unveils Pepsi Blue in July.
A fusion of berries with a splash of cola, the blue -hued soft drink is
created by and for teens. Through nine months of research and
development, Pepsi asks young consumers what they want most in a
new cola. Their response: "Make it berry and make it blue."


• In December, American music and film sensation Beyoncé
Knowles is welcomed as the newest member of the Pepsi family.

2003: Pepsi-Cola unveils a new advertising campaign, "Pepsi. It's
the Cola," which is the brand's first major campaign shift since
1999. The new campaign highlights the popular soft drink that goes
with everything from food to fun.


• Pepsi's last major campaign change was i n 1999, when it debuted
"The Joy of Cola," which became "The Joy of Pepsi" in 2000.


• Pepsi updates its look with a bolder, more contemporary image
that better captures the brand's youthful attitude.


• Mountain Dew offers its third line extension with Mo untain Dew
LiveWire, combining the unique citrus taste of Mountain Dew with
a bold orange flavour.


• Pepsi's blockbuster summer promotion "Pepsi Play for a Billion"
gives 1,000 consumers the chance to play for $1 billion on a live
television show on The WB. A guaranteed $1 million prizewinner
will be chosen and will then have a chance to win $1 billion without
forfeiting the $1 million prize.


• In September, Richard Bay, a 42 -year-old high school teacher
from Princeton, West Virginia, became a millionaire on "Pepsi Play
for a Billion" on The WB. Bay and the television audience then held
their collective breath to see if he would also win the billion
dollars. Instead, his number was two digits off the billion -dollar
number, but Bay was still pleased with hi s cool million.

2004: Pepsi unveils five new TV commercials for Pepsi and Sierra
Mist on Super Bowl XXXVIII, making this the 19th straight year
that Pepsi has advertised in the big game.


• On Super Bowl Sunday, Apple and Pepsi officially launch a
historic promotion to legally give away millions of free songs to
Mac and Windows PC users from Apple's iTunes Music Store.


• On the Academy Awards telecast, Diet Pepsi stole the spotlight as
the country‘s fastest-growing major soft drink bowed a new
advertising campaign with the tagline, ―Diet Pepsi. It‘s the Diet
Cola. The zero-calorie cola brand illustrates how it is the best
option to go with food and social occasions, much like its sister
brand, Pepsi-Cola.


• Two popular sportscasters help turn life‘s every day moments into
a cause for celebration in a new advertising campaign for Pepsi
EDGE, the new cola with full -flavored taste but half the sugar,
carbs & calories of regular colas. The campaign tagline, "This
moment deserves a Pepsi EDGE," reminds consumers that they can
reward themselves with a Pepsi EDGE for completing even the
simplest of tasks.


• Mountain Dew brings nostalgia back into pop culture as it
introduces new commercials featuring the classic Mad Magazine
"Spy vs. Spy" characters — that will stop at nothing to get their
Dew.
COCA-COLA
As the world's favourite drink, the world's most valuable brand and
the most recognizable word across the world after ‗OK‘; Coca -Cola
has a truly remarkable heritage. From a humble beginning in 1886,
it is now the flagship brand of the largest manufacturer , marketer
and distributor of non-alcoholic beverages in the world.

Coca-Cola returned to India in 1993 and over the past ten years has
captured the imagination of the nation, building strong associations
with cricket, the thriving cinema industry, music etc.

Coca-Cola has been very strongly associated with cricket,
sponsoring the World Cup in 1996 and various other tournaments,
including the Coca-Cola Cup in Sharjah in the late nineties.

Coca-Cola's advertising campaigns ―Jo Chaho Ho Jaye and Life ho
to Aisi‖ were very popular and had entered the youth's vocabulary.

2002:Coca-Cola launched the campaign " Thanda Matlab Coca-
Cola" which sky-rocketed the brand to make it India's favourite
soft-drink brand.

2003: Coke was available for just Rs. 5 across the country and this
pricing initiative together with improved distribution ensured that
all brands in the portfolio grew leaps and bounds.

Coca-Cola had signed on various celebrities including movie stars
such as Karishma Kapoor, cricketers such as Srinath, Sourav
Ganguly, southern celebrities like Vijay in the past and today, its
brand ambassadors are Aamir Khan, Aishwarya Rai, Vivek Oberoi
and cricketer Virendra Sehwag.
PEPSI VS COCA-COLA
                          Conclusion
This project has been helpful in understanding the meaning of
Brand Rivalry. It was noted that Brand Rivalry is an extra
aggressive in competition between two different brands to reach at
number one or to capture more market share. In the most aggressive
variants, ethics, moral values and even the law can be neglected and
it is only a race to reach the number one position which drives the
brand.

Through this project we were able to understand how Pepsi & Coca -
Cola were formed and the problem faced by them in the initial years
of operation and how did they overcome all those difficulties.

This project made known to us how Pepsi & Coca -Cola being the
prominent brand rivalries fought fiercely against each other through
their production tactics, marketing strategies and advertisements.
All through this war which continues even to this day, both the
brands have done their level best to convince the people that one is
better than the other.

Through this project we also discussed various differences that exist
between the strategies and techniques adopted by both of them to
sell out their product.

Therefore, I hope that the project has met its aim.

In fact, all of the battles have seen a conclusion....a victor and a
loser; but in the case of Pepsi & Coca -Cola, while both sides still
claim a victory, the jury is still out the public is still undecided and
the soda still stands in solitude.

As the bottom line conclusion, the battle of Coca -Cola versus Pepsi
does not seem to end. It is like they are arch enemies for each other.
Nevertheless, it is always interesting to see the market battle
between these two soft drink products.
BIBLIOGRAPHY
www.google.com

www.wikipedia.org

www.slideshare.net

www.coca-cola.com

www.pepsi.com

www.scribd.com

www.realversus.com

www.investmentu.com



                 ~~~~~~~~~~~~
             Attn: Pictures on the next page!!
Pictures to be attached
Attn: Attach these pictures on the backside of the page
        which is adjacent to the relevant page.




         Prominent electronics & information technology brands




                Prominent toffee & confectionary brands
Prominent camera brands
Pepsi’s new logo




The drugstore of Caleb Bradham, inventor of Pepsi, as portrayed in the "Bern New Bern"
                       exhibition in the Historical Museum Bern.




                         The original stylized Pepsi-Cola logo
The second stylized Pepsi-Cola logo




      Pepsi’s 12 oz bottle of 1936
1940’s advertisement specifically targeting African Americans, A young Ron Brown is the
                                 boy reaching for a bottle.
Logo of Frito-Lay




Logo of Tropicana




  Logo of Pepsi
Logo of Coca-Cola




Coca-Cola vending machine




 Coca-Cola being bottled
A corner store in Goa,,India where the Coca-Cola signs advertise 200 ml bottles of coke at
                                   five Indian rupees.
Coca-Cola founders Asa G. Candler and Dr. John S. Pemberton are seen together at Asa G. Candler & Co.
 pharmacy, 47 Peachtree St., Atlanta in the only extant albumen photograph from 1888. Also shown is the
                   biography of Candler written by his son, Charles Howard Candler.




                              An Old German Coca-Cola bottle opener




Believed to be the first coupon ever, this ticket for a free glass of Coca-Cola was first distributed in 1888 to
               help promote the drink. By 1913, the company had redeemed 8.5 million tickets.
This Coca-Cola advertisement from 1943 is still displayed in the small city of Minden,
                                    Louisiana.
Original framed Coca-Cola artist's drawn graphic presented by The Coca-Cola Company on July 12, 1944 to
       Charles Howard Candler on the occasion of Coca-Cola's "1 Billionth Gallon of Coca-Cola Syrup."




    Legended to be the first installation anywhere of the 1948 model "Boat Motor" styled Coca-Cola soda
dispenser, Fleeman's Pharmacy, Atlanta, Georgia. The "Boat Motor" soda dispenser was introduced in the late
                   1930's and manufactured till the late 1950's. {Photograph circa 1948}




                                             New Coke can
Pepsi Vs Coca-Cola
Vs




Vs




Vs
Vs




Vs




Vs
Mock-up of Coke dispenser flown aboard the Space Shuttle Discovery in 1995, on display at the Astronaut Hall
                                                of Fame.
Coke and Pepsi cans flown aboard STS-51-F
on display at the National Air and Space Museum




          Silver Spring’s Virgin Cola
Sainsbury's store brand Classic Cola
Indra Krishnamurthy Nooyi- CEO of PepsiCo
at World Economic Forum annual meeting in Davos, Switzerland, January 2010
Muhtar A. Kent-the Chairman and Chief Executive Officer (CEO)
                 of the Coca-Cola Company.
Team India after bagging Pepsi Cup sponsored by the PepsiCo




               M.S Dhoni; Shot from a Pepsi Ad
‘Coca-Cola sucks India dry’




People of India agitating against Coca-Cola factory

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Brand Rivalries: Pepsi Vs Coca- Cola-Cbse class 12 Entrepreneurship Project

  • 1. ENTREPRENEURSHIP PROJECT BRAND RIVALRIES Name of the school : SHARJAH INDIAN SCHOOL NAME OF THE STUDENT : DAN K. JOHN CLASS : XII-E CBSE ROLL NO. : ACADEMIC YEAR : 2012-2013 TEACHER IN CHARGE : MR. JAMES THOMAS
  • 2. INDEX SL. TITLE SOURCE OF THE PAGE SIGN OF THE NO. PROJECT NO. TEACHER 1 Acknowledgement - 2 Brand Rivalry www.wikipedia.org An INTRODUCTION 3 Pepsi www.wikipedia.org An Introduction 4 Pepsi www.wikipedia.org the history www.pepsiarabia.com 5 Products Of Pepsi www.wikipedia.org 6 Coca-Cola www.wikipedia.org An Introduction 7 Coca-Cola www.cocacola.com the history 8 Products Of Coca- www.wikipedia.org Cola 9 Pepsi Vs Coca-Cola www.versus.com A Comparison 10 Pepsi Vs Coca-Cola www.slideshare.net THE COLA WAR www.scribd.com 11 Pepsi Vs Coca-Cola Which Cola brand is the Better Investment? -
  • 3. 12 Pepsi Vs Coca-Cola www.infobarrel.com PRESENCE IN INDIA 13 Pepsi Vs Coca-Cola Marketing www.google.com 14 Pepsi Vs Coca-Cola Advertising www.google.com Strategies 15 Pepsi Vs Coca-Cola Conclusion - 16 BIBLIOGRAPHY -
  • 4. ACKNOWLEDGEMENT I have taken efforts in this project. However, it would not have been possible without the kind support and help of many individuals and organizations. I would like to extend my sincere thanks to all of them. I thank my God for providing me with everything that I required in completing this project. I am highly indebted to the Teacher in Charge Mr. James Thomas for his guidance and constant supervision as well as for providing necessary information regarding the project & also for his support in completing the project. I would like to express my gratitude towards my parents for their kind co- operation and encouragement which helped me in the completion of this project. I would like to express my special gratitude and thanks to industry persons for giving me such attention and time. My thanks and appreciations also go to my classmates in developing the project and to the people who have willingly helped me out with their abilities.
  • 5. BRAND RIVALRY An INTRODUCTION A brand is a name, term, sign, symbol, or design which is intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors. Products and services have become so alike that they fail to distinguish themselves by their quality, efficacy, reliability, assurance and care. Brands add emotion and trust to these products and services, thus providing clues that simplify consumers‘ choice. These added emotions and trust help create a relationship between brands and consumers, which ensures consumers‘ loyalty to the brands. Brands create inspirational lifestyles based on these consumer relationships. Associating oneself with a brand transfers these lifestyles onto consumers Branding is more than just a business buzz word. It has become the crux of selling in the new economy. If the old marketing mantra was, ―Nothing happens until somebody sells something‖, the new philosophy could be ―Nothing happens until somebody brands something." In its simplest form, a brand is a noun. It is the name attached to a product or service. However, upon close inspection, a brand represents many more intangible aspects of a product or service: a collection of feelings and perceptions about quality, image, lifestyle and status. It creates in the mind of customers and prospects the perception that there is no product or service on the market that is quite like yours. In short, a brand offers the customer a guarantee and then delivers on it. Creating a strong brand identity will build mind share one of the strongest competitive advantages imaginable. As a result, customers will think of your business first when they think of your product category. For example, when you think of tissues, more likely than not, you think of the Kleenex brand. And when you're looking for tape to wrap a present, Scotch is the brand that springs to mind. Likewise, when your child wants a hamburger, he will often say he wants to go to McDonald‘s. The reason behind these strong brand-
  • 6. product associations is that these companies have built rock solid brand identities. And since ‗brand‘ being such a powerful tool in the success of a business, it is not strange that we see though competition between brands offering similar kind of goods or services. This is known Brand Rivalry. Brand rivalry is an extra aggressive in competition between two different brands to reach at number one or to capture more market share. In the most aggressive variants, ethics, moral values and even the law can be neglected and it is only a race to reach the number one position which drives the brand. The main reason for brand rivalry is that the companies are trying to get more customers and to increase their market. The aim of the battle is to get the customer to buy your product and not the product of the competitor. There are two types of customers: Active and Passive. Active customers know what they want. And passive ones, on the contrary, have no idea of what they want and think for a long time about what product to buy. So, the second group – passive customers – is the bone of contention, the object of fighting in brand wars. Thus, companies are trying to get their customers by many methods. These methods are: improving the quality of goods, then lowering prices and offering discounts, and using advertising, of course. The brand wars often take the form of price wars. It‘s when to competing companies are lowering prices more and more until they reach the level of their costs and they just get no profit. Price wars are good for customers but bad for companies as they decrease their profits. So, it‘s better to use other methods when fighting in a brand war. In today‘s global scenario brand rivalry is not only about competitive advantage, but also being closer to customer, i.e. to have superior customised customer connectivity and it is used for fighting between brands for the best position. It specifically implies inter-brand completion by rival firms producing close substitutes (brands). This target at reducing the market share of the competitor firm while advancing its own.
  • 7. The aim of this project is to bring out two rival brands, go deep into its formation, history and growth; then to analyse the rivalry that exists between them and to understand the difference between the strategies and tactics adopted by each of them In this project we will be comparing the rival brands PEPSI & COCA- COLA.
  • 8.
  • 9. PEPSI AN INTRODUCTION Pepsi is a carbonated soft drink that is produced and manufactured by PepsiCo. Created and developed in 1898 and introduced as "Brad's Drink", it was later renamed as Pepsi -Cola on June 16, 1903, then to Pepsi in 1961. It is one of the most well known brands in the world today available in over 160 countries. It has an extremely positive outlook for India. This reflects that India holds a central position in Pepsi's corporate strategy. India is a key market for Pepsi co, and at the same time the company has added value to Indian agriculture and industry. PepsiCo entered India in 1989 and is concentrating in three focus areas- Soft drink concentrate, snack foods and vegetable and food processing. Faced with the existing policy framework at the time, the company entered the Indian market through a joint venture with Volta‘s and Punjab Agro Industries. With the introduction of the liberalization policies since 1991, Pepsi took complete control of its operations. The government has approved more than US$ 400 million worth of investments of which over US$ 330 million have already flow n in. One of PepsiCo's key strategies was to develop a co mpletely local management team. Pepsi has 19 company owned factories while their Indian bottling partners own 21. The company has set up 8 Greenfield sites in backward regions of different states. P epsiCo intends to expand its operations and is planning an investment of approximately US$ 150 million in the next two-three years.
  • 10. PEPSI The history Pepsi was originally named "Brad's Drink", after its creator, Caleb Bradham, a pharmacist in New Bern, North Carolina. It was created in the summer of 1893 and was later renamed Pepsi Cola in 1898, possibly due the digestive enzyme pepsin and kola nuts used in the recipe. Bradham sought to create a fountain drink that was delicious and would aid in digestion and boost energy In 1903, Bradham moved the bottling of Pepsi -Cola from his drugstore into a rented warehouse. That year, Bradham sold 7,968 gallons of syrup. The next year, Pepsi was sold in six -ounce bottles, and sales increased to 19,848 gallons. In 1926, Pepsi received its first logo redesign since the original design of 1905. In 1929, the logo was changed again. In 1929, automobile race pioneer Barney Oldfield endorsed Pepsi-Cola in newspaper ads as "A bully drink...refreshing, invigorating, a fine bracer before a race". Bankruptcy In 1931, the Pepsi-Cola Company went bankrupt during the Great Depression- in large part due to financial losses incurred by speculating on wildly fluctuating sugar prices as a result of World War I. Assets were sold and Roy C. Megargel bought the Pepsi trademark. Eight years later, the company went bankrupt again. Pepsi's assets were then purchased by Charles Guth, the President of Loft Inc. Loft was a candy manufacturer with retail stores that contained soda fountains. He sought to replace Coca-Cola at his stores' fountains after Coke refused to give him a discount on syrup. Guth then had Loft's chemists reformulate the Pepsi-Cola syrup formula. Pepsi Cola Trademark The original trademark application for Pepsi -Cola was filed on September 23, 1902 with registration approved on June 16, 1903. In
  • 11. the application's statement, Caleb Bradham describes the tradema rk as an "arbitrary hyphenated word "PEPSI -COLA", and indicated that the mark was in continuous use for his business since August 1, 1901. The Pepsi-Cola's description is a flavoring -syrup for soda water. The trademark expired on April 15, 1994. A second Pepsi-Cola trademark is on record with the USPTO. The application date submitted by Caleb Bradham for the second trademark is Saturday, April 15, 1905 with the successful registration date of April 15, 1906, over three years after the original date. Curiously, in this application, Caleb Bradham states that the trademark had been continuously used in h is business "and those from whom title is derived since in the 1905 application the description submitted to the USPTO was for a tonic beverage. The federal status for the 1905 trademark is registered and renewed and is owned by PepsiCo, Inc. of Purchase. Rise During the Great Depression, Pepsi gained popularity following the introduction in 1936 of a 12 -ounce bottle. Initially priced at 10 cents, sales were slow, but when the price was slashed to five cents, sales increased substantially. With a rad io advertising campaign featuring the jingle "Pepsi cola hits the spot / Twelve full ounces, that's a lot / Twice as much for a nickel, too / Pepsi-Cola is the drink for you," Pepsi encouraged price -watching consumers to switch, obliquely referring to the Coca -Cola standard of six ounces a bottle for the price of five cents (a nickel), instead of the 12 ounces Pepsi sold at the same price. Coming at a time of economic crisis, the campaign succeeded in boosting Pepsi's status. In 1936 alone 500,000,000 bottles of Pepsi were consumed. From 1936 to 1938, Pepsi-Cola's profits doubled. Pepsi's success under Guth came while the Loft Candy business was faltering. Since he had initially used Loft's finances and facilities to establish the new Pepsi success, the near -bankrupt Loft Company sued Guth for possession of the Pepsi-Cola company. A long legal battle, Guth v. Loft, then ensued, with the case reaching the Delaware Supreme Court and ultimately ending in a loss for Guth.
  • 12. Niche Marketing Walter Mack was named the new President of Pepsi -Cola and guided the company through the 1940s. Mack, who supported progressive causes, noticed that the company's strategy of using advertising for a general audience either ignored Americans or used ethnic stereotypes in portraying blacks. He realized African Americans were an untapped niche market and that Pepsi stood to gain market share by targeting its advertising directly towards them. To this end, he hired Hennan Smith, advertising executive "from the Negro newspaper field" to lead an all-black sales team, which had to be cut due to the onset of World War II. In 1947, Mack resumed his efforts, hiring Edward F. Boyd to lead a twelve- man team. They came up with advertising portraying black Americans in a positive light, such as one with a smiling mother holding a six pack of Pepsi while her son (a young Ron Brown, who grew up to be Secretary of Commerce) reaches up for one. Another ad campaign, titled "Leaders in Their Fields", profiled twenty prominent African Americans such as Nobel Peace Prize winner Ralph and photographer Gordon Parks. Boyd also led a sales team composed entirely of blacks around the country to promote Pepsi. Racial segregation and laws were still in place throughout much of the U.S.; Boyd's team faced a great deal of discrimination as a result, from insults by Pepsi co-workers to threats by the Ku Klux Klan. On the other hand, it was able to use racism as a selling point, attack ing Coke's reluctance to hire blacks and support by the chairman of Coke for segregationist Governor Herman Talmadge. As a result, Pepsi's market share as compared to Coke's shot up dramatically. After the sales team visited Chicago, Pepsi's share in the city overtook that of Coke for the first time. This focus on the market for black people caused some consternation within the company and among its affiliates. It did not want to seem focused on black customers for fear white customers would be pushed away. In a meeting at the Waldorf-Astoria Hotel, Mack tried to assuage the 500 bottlers in
  • 13. attendance by pandering to them, saying: "We don't want it to become known as a nigger drink." After Mack left the company in 1950, support for the black sales team faded and it was cut. Current Situation PepsiCo, Inc. is one of the most successful consumer products companies in the world, with 2000 revenues of over $20 billion and 125,000 employees. The company consists of: Frito -Lay Company, the largest manufacturer and distributor of snack chips; Pepsi -Cola Company, the second largest soft drink business and Tropicana Products, the largest marketer and producer of branded juice. PepsiCo brands are among the best known and most respected in the world and are available in about 190 countries and territories.
  • 14. PRODUCTS OF PEPSI Pepsi Pepsi is a carbonated soft drink that is produced and manufactured by PepsiCo. Created and developed in 1898 and introduced as "Brad's Drink", it was later renamed as Pepsi-Cola on June 16, 1903, then to Pepsi in 1961.It is one of the most well known brands in the world today available in over 160 countries. Mirinda Mirinda is a brand of soft drink originally created in Spain, but with global distribution. The word Mirinda means "admirable, wonderful" in Esperanto. It is available in fruit varieties including orange, grapefruit, apple, strawberry, raspberry, pineapple, pomegranate, banana, lemon, hibiscus, Guarana, tangerine, and grape flavours as well as Tamarind. A "citrus" flavour is also available in certain areas of the Middle East. Mountain Dew Mountain Dew s a carbonated soft drink brand produced and owned by PepsiCo. The original formula was invented in the 1940s by Tennessee beverage bottlers Barney and Ally Hartman and was first marketed in Marion, Virginia, Knoxville and Tennessee. The Mountain Dew brand and production rights were acquired by the Pepsi -Cola company in 1964, at which point its distribution expanded more widely across the United States. 7UP 7UP is a brand of a lemon-lime flavored non-caffeinated soft drink. The rights to the brand are held by Dr Pepper Snapple Group in the United States, and PepsiCo (or its licensees) in the rest of the world.
  • 15.
  • 16. COCA-COLA AN INTRODUCTION Coca-Cola is a carbonated soft drink sold in stores, restaurants, and vending machines in more than 200 countries. It is produced by The Coca-Cola Company of Atlanta, Georgia, and is often referred to simply as Coke. Originally intended as a patent medicine when it was invented in the late 19th century by John Pemberton, Coca-Cola was bought out by businessman Asa Griggs Candler, whose marketing tactics led Coke to its dominance of the world soft-drink market throughout the 20th century. The company produces concentrate, which is then sold to licensed Coca-Cola bottlers throughout the world. The bottlers, who hold territorially exclusive contracts with the company, produce finished product in cans and bottles from the concentrate in combination with filtered water and sweeteners. The bottlers then sell, distribute and merchandise Coca-Cola to retail stores and vending machines. Such bottlers include Coca-Cola Enterprises, which is the largest single Coca-Cola bottler in North America and Western Europe. The Coca-Cola Company also sells concentrate for soda fountains to major restaurants and food service distributors. The Coca-Cola Company has, on occasion, i ntroduced other cola drinks under the Coke brand name. The most common of these is Diet Coke, with others including Caffeine-Free Coca-Cola, Diet Coke Caffeine-Free, Coca-Cola Cherry, Zero, Coca, and special versions with lemon, lime or coffee. Based on Interbrand's best global brand 2011, Coca-Cola was the world's most valuable brand. The Coca-Cola Company believes our business has always been based on the trust consumers everywhere place in us —trust that is earned by what we do as a corporate citizen and by our abi lity to live our values as a commercial enterprise, there is much in our world to celebrate, refresh, strengthen and protect. Through our actions as local citizens, we strive every day to refresh the marketplace, enrich the workplace, preserve the environm ent and
  • 17. strengthen our communities. At the heart of our business is the trust consumers place in us. They rightly expect that we are managing our business according to sound ethical principles, that we are enhancing the health of our communities, and that we are using natural resource responsible. The Coca Cola Company started operations in India in 1993 after an absence of 16 years. To reach India's 300 million soft -drink consumers, the company distributes its products through over 700,000 retail outlets Coca Cola India directly employs over 7000 workers. Over the past nine years, the company has invested over US$ 827 million in India with over US$ 800 million in its bottling subsidiary. Significant growth has come from Kinley, its packaged water brand, which claims to have around 35 per cent share of the packaged drinking water market It is the world's favourite drink. It is the world's most valuable brand and the most recognizable word across the world after ‗OK‘. Coca-Cola has a truly remarkable heritage . From a humble beginning in 1886, it is now the flagship brand of the largest manufacturer, marketer and distributor of non -alcoholic beverages in the world. In India, Coca-Cola was the leading soft-drink till 1977 when govt. policies necessitated its departure. Coca-Cola made its return to the country in 1993 and made significant investments to ensure that the beverage is available to more and more people, even in the remote and inaccessible parts of the nation. Coke had entered the Indian soft drinks market way back in the 1970s. The company was the market leader till 1977, when it had to exit the country following policy changes regarding MNCs operating in India. Over the next few years, a host of local brands emerged such as Campa Cola, Thumps Up, Gold Spot and Limca etc. However, with the entry of Pepsi and Coke in the 1990s, almost the entire market went under their control.
  • 18. COCA-COLA the HISTORY The first Coca-Cola recipe was invented in a drugstore in Columbus, Georgia by John Pemberton, originally as a coca wine called Pemberton's French Wine Coca in 1885. He may have been inspired by the formidable success of Vin Mariani, a European coca wine. In 1886, when Atlanta and Fulton County passed prohibition legislation, Pemberton responded by developing Coca -Cola, essentially a non-alcoholic version of French Wine Cola . The first sales were at Jacob's Pharmacy in Atlanta, Georgia, on May 8, 1886. It was initially sold as a patent medicine for five cents a glass at soda fountains, which were popular in the United States at the time due to the belief that carbonated water was good for the health. Pemberton claimed Coca-Cola cured many diseases, including morphine addiction, dyspepsia, neurasthenia, headache, and impotence. Pemberton ran the first advertisement for the beverage on May 29 of the same year in the Atlanta Journal. By 1888, three versions of Coca-Cola—sold by three separate businesses—were on the market. Asa Griggs Candler acquired a stake in Pemberton's company in 1887 and incorporated it as the Coca Cola Company in 1888. The same year, while suffering from an ongoing addiction to morphine, Pemberton sold the rights a second time to four more businessmen: J.C. Mayfield, A.O. Murphey, C.O. Mullahy and E.H. Bloodworth. Meanwhile, Pemberton's alcoholic son Charley Pemberton began selling his own version of the product. John Pemberton declared that the na me "Coca-Cola" belonged to Charley, but the other two manufacturers could continue to use the formula. So, in the summer of 1888, Candler sold his beverage under the names Yum Yum and Koke. After both of them failed to catch on, Candler set out to establi sh a legal claim to Coca-Cola in late 1888, in order to force his two competitors out of the business. Candler purchased exclusive rights
  • 19. to the formula from John Pemberton, Margaret Dozier and Woolfolk Walker. However, in 1914, Dozier came forward to claim her signature on the bill of sale had been forged, and subsequent analysis has indicated John Pemberton's signature was most likely a forgery as well. In 1892 Candler incorporated a second company, The Coca-Cola Company (the current corporation), and in 1910 Candler had the earliest records of the company burned, further obscuring its legal origins. By the time of its 50th anniversary, the drink had reached the status of a national icon in the USA. In 1935, it was certified kosher by Rabbi Tobias Geffen, after the company made minor changes in the sourcing of some ingredients. Coca-Cola was sold in bottles for the first time on March 12, 1894. The first outdoor wall advertisement was painted in the same year as well in Georgia. The Cans of Coke first appeared in 1955. The first bottling of Coca-Cola occurred in Vicksburg, Mississippi, at the Biedenharn Candy Company in 1891 . Its proprietor was Joseph A. Biedenharn. The original bottles were Biedenharn bottles, very different from the much later hobble -skirt design that is now so familiar. Asa Candler was tentative about bottling the drink, but two entrepreneurs from Chattan ooga, Tennessee, Benjamin F. Thomas and Joseph B. Whitehead, proposed the idea and were so persuasive that Candler signed a contract giving them control of the procedure for only one dollar. Candler never collected his dollar, but in 1899 Chattanooga beca me the site of the first Coca-Cola bottling company. The loosely termed contract proved to be problematic for the company for decades to come. Legal matters were not helped by the decision of the bottlers to subcontract to other companies, effectively beco ming parent bottlers. Twentieth Century Landmarks By the time of its 50th anniversary, the soft drink had reached the status of a national icon in the USA. In 1935, it was
  • 20. certified kosher by Atlanta Rabbi Tobias Geffen, after the company made minor changes in the sourcing of some ingredients. The longest running commercial Coca -Cola soda fountain anywhere was Atlanta's Fleeman's Pharmacy, which first opened its doors in 1914. Jack Fleeman took over the pharmacy from his father and ran it till 1995; closing it after 81 years. On July 12, 1944, the one-billionth gallon of Coca-Cola syrup was manufactured by The Coca-Cola Company. The Cans of Coke first appeared in 1955. New Coke On April 23, 1985, Coca-Cola, amid much publicity, attempted to change the formula of the drink with "New Coke". Follow -up taste tests revealed that most consumers preferred the taste of New Coke to both Coke and Pepsi, but Coca-Cola management was unprepared for the public's nostalgia for the old drink, leading to a backlash. The company gave in to protests and returned to a variation of the old formula, with high-fructose replacing cane sugar, under the name Coca-Cola Classic on July 10, 1985. Twenty-first Century On February 7, 2005, the Coca-Cola Company announced that in the second quarter of 2005 they planned to launch a Diet Coke product sweetened with the artificial sweetener sucralose ("Splenda"), the same sweetener currently used in Pepsi One. On March 21, 2005, it announced another diet product, Coca-Cola Zero, sweetened partly with a blend of Aspartame and Acesulfame potassium. In 2007, Coca-Cola began to sell a new "healthy soda": Diet Coke with vitamins B6, B12, Magnesium, Niacin , and zinc, marketed as "Diet Coke Plus." On July 5, 2005, it was revealed that Coca -Cola would resume operations in Iraq for the first time since the Arab League boycotted the company in 1968.
  • 21. In April 2007, in Canada, the name "Coca -Cola Classic" was changed back to "Coca-Cola." The word "Classic" was truncated because "New Coke" was no longer in production, eliminating the need to differentiate between the two. The formula remained unchanged. In January 2009, Coca-Cola stopped printing the word "Classic" on the labels of 16-ounce bottles sold in parts of the southeastern United States. The change is part of a larger strategy to rejuvenate the product's image. In November 2009, due to a dispute over wholesale prices of Coca - Cola products, Costco stopped restocking its shelves with Coke and Diet Coke.
  • 22. PRODUCTS OF COCA-COLA Coca-Cola Coca-Cola is a carbonated soft drink sold in stores, restaurants, and vending machines in more than 200 countries. It is produced by The Coca-Cola Company of Atlanta, Georgia, and is often referred to simply as Coke. Thumps-up Thumps Up is a brand of cola in India. It was introduced in 1977 to offset the expulsion of The Coca-Cola Company from India. The brand was bought out by Coca-Cola who re-launched it in order to compete against Pepsi. Sprite Sprite is a transparent, lemon-lime flavoured, caffeine-free soft drink, produced by the Coca-Cola Company. It was introduced in the United States in 1961. This was Coke's response to the popularity of 7 UP. It comes in a primarily silver, green, and blue can or a green transparent bottle with a primarily green and blue label. Fanta Fanta is a global brand of fruit-flavoured carbonated drinks from the Coca-Cola Company. There are over 100 flavours worldwide. The drink debuted in Nazi Germany in 1941 and originally sold only in Europe. Maaza Maaza is a Coca-Cola fruit drink brand marketed in India and Bangladesh, the most popular drink being the mango variety so much that over the years, the Maaza brand has become synonymous with Mango.Coca-Cola has also launched Maaza in orange and pineapple variants.
  • 23.
  • 24. PEPSI VS COCA-COLA A Comparison Taste Coca-Cola is the original cola, while there isn't a huge difference in taste; Pepsi mirrored their cola after Coke's, being just different enough in taste to not actually be the same drink. Similarities Pepsi-Cola and Coca Cola Classic are both carbonated cola beverages. Sweetness Pepsi tastes sweeter than Coca-Cola, This is the reason why many prefer Pepsi over Coca-Cola in a blind test but may prefer Coke when drinking an entire can. Carbonation Coca-Cola has more carbonation than Pepsi depending on wh at region you are in. It was said that depending on where each one was made the amount of carbonation in them will be different therefore proving that neither Coca -Cola nor Pepsi have more carbonation.
  • 25. PEPSI VS COCA-COLA THE COLA WAR The Cola Wars are a campaign of mutually-targeted television advertisements and marketing campaigns since the 1980s to present between soft drink manufacturers Coca-Cola Company and PepsiCo Incorporated. According to Consumer Reports, in the 1970 s, the rivalry continued to heat up the market. Pepsi conducted blind taste tests in stores, in what was called the " Pepsi Challenge". These tests suggested that more consumers preferred the taste of Pepsi (which is believed to have more lemon oil, less orange oil, and uses vanillin rather than vanilla) to Coke. The sales of Pepsi started to climb, and Pepsi kicked off the "Challenge" across the nation. This became known as the " Cola Wars." In 1985, The Coca-Cola Company, amid much publicity, changed its formula. The theory has been advanced that New Coke, as the reformulated drink came to be known, was invented specifically in response to the Pepsi Challenge. However, a consumer backlash led to Coca-Cola quickly introducing a modified version of the original formula (removing the expensive Haitian lime oil and changing the sweetener to corn syrup) as Coke "Classic". The Beginning 1975 heralded the ‗Pepsi Challenge‘, a landmark marketing strategy, which convinced millions of consumers that the taste of Pepsi was superior to Coke. Simultaneously, Pepsi Light, with a distinctive lemon taste, was introduced as an alternative to traditional diet colas. In 1983 Coke launched aspartame/saccharin blend Diet Coke. In response in 1989 Pepsi-Cola introduced an exciting new flavor, Wild Cherry Pepsi. Thus Diet Pepsi's 'The Other Challenge' campaign was based around a 54 -46% lead over Diet Coke in independently researched taste tests in Australia.
  • 26. It was only in 1996 that Pepsi unveiled a revolutionary 'blue' look worldwide 'to transform the image and attitude' of one of the world's best-known brands. 'Pepsi Blue represents a quantum leap into the future and redefines how the Cola Wars will be fought and won in the 21st Century.' Competition Many of the brands available from the three largest soda producers, The Coca-Cola Company and PepsiCo are intended as direct, equivalent competitors. The following chart lists these competitors by type or flavour of drink. Flavour/Type PepsiCo The Coca- Cola Company Cola Pepsi Coca-Cola Diet Cola Diet Pepsi / Pepsi Diet Coke / Coca- Light, Cola Light, Pepsi ONE, Tab, Pepsi Max Coca-Cola Zero Cherry-flavoured cola Pepsi Wild Cherry Coca-Cola Cherry "Pepper"-style Dr Slice Mr. Pibb / Pibb Xtra Orange Mirinda, Fanta, Tropicana Twister, Minute Maid Tango, Slice Lemon-lime Teem, Sprite, Sierra Mist, Lemon & Paeroa 7 Up (in countries other than US)
  • 27. Flavour/Type PepsiCo The Coca- Cola company Root beer Mug Root Beer Barq's Ramblin' Root Beer Cream soda Mug Cream Soda Barq's Red Creme Soda Juices Tropicana, Minute Maid, Dole Fruitopia, Simply Orange Iced tea Lipton, Nestea, Brisk Gold Peak Tea Sports drinks Gatorade, PowerAde, Propel Aquarius, Vitamin Water Energy drinks AMP Full Throttle, NOS, Relentless, Monster Mineral Waters Aquafina Kinley, Dasani Marketing Campaigns Coca-Cola and Pepsi-Cola focused particularly on pop stars; notable soft drink promoters included Mariah Carey, KISS, Tina Turner, Britney Spears, David Bowie, Rod Stewart, Jim Varney, Elvis Presley, Michael Jackson, Madonna, and Ray Charles (for Pepsi) and Whitney Houston, Paula Abdul, Weird Al
  • 28. Yankovic, George Michael, Christina Aguilera, Max Headroom, and Elton John (for Coca-Cola). Coca-Cola One example of a heated exchange that occurred during the Cola Wars was Coca-Cola making a strategic retreat on July 11, 1985, by announcing its plans to bring back the original 'Classic' Coke after recently introducing New Coke. Pepsi Pepsi ads often focused on celebrities choosing Pepsi over Coke, supporting Pepsi's positioning as "The Choice of a New Generation." Pepsi generation was created focusing on the user of the drink, never the drink. Coke always focused on the drink. Pepsi focused on the person using it. They showed people riding dirt bikes, waterskiing, or kite flying, hang gliding — doing different things. And at the end of it there would always be a Pepsi as a reward. This all happened when color television was first coming in. They were the first company to do lifestyle marketing. The first and the longest-running lifestyle campaign were and still is Pepsi. In 1975, Pepsi began showing people doing blind taste tests called Pepsi Challenge in which they preferred one product over the other, and then they began hiring more and more popular spokespersons to promote their products. In their hope to win the Cola Wars a Concorde was painted blue with PEPSI written across it in white lettering. In the late 1990s, Pepsi launched its most successful long - term strategy of the Cola Wars, Pepsi Stuff. Consumers were invited to "Drink Pepsi, Get Stuff" and collect Pepsi Points on billions of packages and cups. They could redeem the points for free Pepsi lifestyle merchandise. After researching and testing the program for over two years to ensure that it resonated with consumers, Pepsi launched Pepsi Stuff, which was an instant success. Tens of millions of consumers participated. Pepsi outperformed Coke during the summer of the Atlanta Olympics - held in Coke's hometown - where Coke was a lead sponsor of the Games. Due to its success, the program was expanded to include Mountain Dew, and into Pepsi's international markets worldwide. The company continued to run the program for many years, continually innovating with new features each year.
  • 29. The Pepsi Stuff promotion became the subject of a lawsuit. In one of the many commercials, Pepsi showed a young man in the cockpit of a Harrier Jump Jet. Below ran the caption "Harrier Jet: 7 million Pepsi Points." There was a mechanism for buying additional Pepsi Points to complete a Pepsi Stuff order. John Leonard, of Seattle, Washington, sent in a Pepsi Stuff request with the maximum amount of points and a check for over $700,000US to make up for the extra points he needed. Pepsi did not accept the request and Leonard file d suit. The judgment was that a reasonable person viewing the commercial would realize that Pepsi was not, in fact, offering a Harrier Jet. In response to the suit, Pepsi added the words "Just Kidding" under the portion of the commercial featuring the jet as well as changing the "price" to 700 million Pepsi points Coca-Cola and Pepsi engaged in a " cyber-war" with the re- introduction of Pepsi Stuff in 2005 & Coca -Cola retaliated with Coke Rewards. This cola war has now concluded, with Pepsi Stuff ending its services and Coke Rewards still offering prizes on their website. Both were loyalty programs that give away prizes and product to consumers after collecting bottle caps and 12 or 24 pack box tops, then submitting codes online for a certain number of points. However, Pepsi's online partnership with Amazon allowed consumers to buy various products with their "Pepsi Points", such as mp3 downloads. Both Coca-Cola and Pepsi previously had a partnership with the iTunes Store. In Space In 1985, Coca-Cola and Pepsi were launched into space aboard the Space Shuttle Challenger onSTS-51-F. The companies had designed special cans (officially the Carbonated Beverage Dispenser Evaluation payload or CBDE) to test packaging and dispensing techniques for use in zero G conditions. The experiment was classified a failure by the shuttle crew, primarily due to the lack of both refrigeration and gravity. The "Coca-Cola Space Dispenser" (Fluids Generic Bio -processing Apparatus-1, or FGBA-1) was designed to provide astronauts the opportunity to enjoy Coca-Cola and Diet Coke in the weightless environment of space, and to "provide baseline data on changes in astronauts' taste perception of beverages consumed in microgravity." It held 1.65 liters each of Coca -Cola and Diet Coke. An astronaut would dispense the carbonated drink of choice into a "Fluids Transfer Unit" or sealed drinking cup through a quick connect on the dispenser. To save power, the dispenser would chill
  • 30. the liquid on demand via cooling coils between the storage container and the quick connect fitting. The FGBA -1 and 18 of the "Fluid Transfer Units" flew aboard the Space Shuttle Discovery in 1995. (STS-63) Further development led to a Coca -Cola fountain dispenser (Fluids Generic Bio-processing Apparatus-2 or FGBA-2) intended as "a test bed to determine if carbonated beverages can be produce d from separately stored carbon dioxide, water and flavored syrups and determine if the resulting fluids can be made available for consumption without bubble nucleation and resulting foam formation". This unit dispensed PowerAde sports drink in addition to Coca-Cola and Diet Coke. This unit flew on STS- 77 aboard Space Shuttle Endeavour in 1996. Unfortunately, the FGBA-2 did not work as expected. Second Cola War During the 1990s, a "second cola war" was reported in the United Kingdom. This time it was due to the launch of Virgin Cola, as well as Sainsbury's store brand Classic Cola, which, unlike most store brand colas, was designed to look like a top product worthy of competition. For a few years both colas were competitive with Coca-Cola and Pepsi; at one point Coca -Cola even sued Sainsbury's claiming the design of the Classic Cola can was too similar to Coke's. However, today, both Virgin and Cla ssic Cola are far behind the two major brands. The high-publicity marketing also continued into the 1990s. In 1997, the Spice Girls (then at their peak) signed a multi -million pound sponsorship deal with Pepsi. They starred in three Pepsi commercials; released two limited edition singles with Pepsi, "Move Over" and "Step to me"; featured on Pepsi packaging; and performed two live concerts in Istanbul organized and sponsored by the company. Cola Wars today Pepsi’s New Strategy: Better-For-You Products In 2007, Indra Nooyi became the fifth CEO in PepsiCo's 44 -year history, and the game completely changed. A former management
  • 31. consultant, she decided not to duke it out directly with Coke. Instead, she‘s trying to redefine the playing field... U.S. Consumption of carbonated soft drinks has steadily declined in the past decade. Part of that comes down to the array of alternative beverages the market now offers. Part of it comes down to health concerns in a nation with an obesity problem. But rather than buck the trend, Ms. Nooyi seeks to refocus Pepsi. ―Lifestyles have changed,‖ she notes, ―And we have to modify our products.‖ In that spirit, she‘s focusing the company more on water, juices, teas and sports drinks. Pepsi‘s top brands in those areas include A quafina and Gatorade. And while it trails in soft drink sales, it leads the world in ready -to- drink teas through Lipton, while its Tropicana wins out in juices/nectars. The company is betting big on creating healthy foods through its Quaker Oats, Gatorade and Tropicana divisions. And it just began the Global Nutrition Group to deliver breakthrough products. Nooyi says the new Group ―is part of our long -term strategy to grow our nutrition business from about $10 billion in revenues today to $30 billion by 2020. To further that goal, Pepsi hired several well -known nutritionists to direct its efforts at reducing fat, sodium and sugar in its products. Already, Lay‘s potato chips have 25% less sodium… and by 2011, they‘ll be made from 100% natural ingredients. As Caroline Levy, a CLSA analyst, noted, ―PepsiCo is currently focused on better-for-you‖ products. Coke’s Consistent Strategy Wins the Cola War Meanwhile, Coca-Cola doesn‘t seem to care about what Pepsi has accepted. CEO Muhtar Kent not only continues to focus on selling soft drinks globally, but even vows to rebuild Coke sales in the U.S. market. And admittedly, Coke‘s beverage volume in North America dropped only 2% last year. 2009 was extremely difficult economically on top of a relatively cool summer.
  • 32. In comparison, Pepsi‘s beverage volume in the same region plunged 8%. According to Beverage Digest, this makes Coca -Cola brand the uncontested U.S. heavyweight. Indeed, looking at all carbonated soft drinks, Coke brands commanded 41.9% of the total market last year compared to PepsiCo‘s 29.9%. The same goes for the companies‘ flagship brands. Through 2009, Coca-Cola commanded 17% of the U.S. soft drink market; Pepsi held only 9.9%. And while both brands have been declining, Pepsi is doing so at a slightly faster rate. Pepsi Admits Defeat… Goes On New Health Kick As far as Pepsi is concerned, the cola wars are over. It now needs to focus on convincing investors that it has the right focus in this new health kick. Currently, the Global Nutrition Group is little but a nice marketing tool. Will Pepsi really develop healthier foods and drinks while still coming up with new types of chips and soda flavours is a question. It recently reduced the top end of its guidance for earnings growt h this year from 13% to 11%. This may be due to increased investment in nutrition… or because of a difficult, competitive global environment. Coke, among others, continues to steal market share away from Pepsi. Carbonated beverages still produce much of th e company‘s sales and for now, they‘re still key to Pepsi‘s future health.
  • 33. PEPSI VS COCA-COLA Which Cola brand is the Better Investment? A study found that 80 percent of people can differentiate a sample of Coca-Cola from a sample of Pepsi. The same study found that if you give people three samples they can only accurately guess which samples are which 33 percent of the time. Th at‘s the same odds as randomly guessing. Malcolm Gladwell called this the Triangle Problem in his book Blink: the Power of Thinking without Thinking . The idea is that the two products are much more similar than they are different. Some people even theorize that the preferences than the actual soda. This same concept can be extrapolated to each company‘s respective stock. Coke vs. Pepsi –Dividends Both Pepsi and Coke are favorites of super investor Warren Buffett. That‘s because both stocks have had strong growth and both are cash cows when it comes to dividends. One interesting note not apparent in the above table above is that Coca-Cola has raised its dividend in a slower, more consistent manner. Pepsi, on the other hand, has significantly upped their dividend distribution over the last few years. In 2004, Pepsi offered a quarterly dividend of 16 cents when Coke was offering a quarter. Coke has increased annual dividends for 49 years running. Pepsi also has a streak of increasing their annual dividend for 39 straight years. Coke‘s stock price has grown in value by over 50 percent since the beginning of 2009. Pepsi‘s stock has grown by about 40 percent in the same time.
  • 34. In terms of market share, Coke owns the top two spots in the cola industry – Coke and Diet Coke- with Pepsi‘s flagship cola coming in at third. Pepsi does have a slight advantage over Coke in diversification. Pepsi has snack food brands such as Frito -Lay and Quaker under its umbrella. They also own the brands that make beverages such as Gatorade, Tropicana and Naked Juices . While Coke hasn‘t tapped the snack food market, they do have some beverage diversification. Dasani bottled water, PowerAde and Minute Maid juices are all under Coca -Cola‘s umbrella.
  • 35. PEPSI VS COCA-COLA PRESENCE IN INDIA PEPSI PepsiCo entered India in 1989 and has grown to become one of the country‘s leading food and beverage companies. One of the largest multinational investors in the country, PepsiCo has established a business which aims to serve the long term dyna mic needs of consumers in India. PepsiCo India and its partners have invested more than U.S.$1 billion since the company was established in the country. PepsiCo provides direct and indirect employment to 150,000 people including suppliers and distributors. PepsiCo nourishes consumers with a range of products from treats to healthy eats that deliver joy as well as nutrition and always, good taste. PepsiCo India‘s expansive portfolio includes iconic refreshment beverages Pepsi, 7 UP, Mirinda and Mountain Dew, in addition to low calorie options such as Diet Pepsi, hydrating and nutritional beverages such as Aquafina drinking water, isotonic sports drinks - Gatorade, Tropicana100% fruit juices, and juice based drinks – Tropicana Nectars, Tropicana Twister and Slice. Local brands – Lehar Evervess Soda, Dukes Lemonade and Mangola add to the diverse range of brands. PepsiCo‘s foods company, Frito -Lay, is the leader in the branded salty snack market and all Frito Lay products are free of trans -fat and MSG. It manufactures Lay‘s Potato Chips; Cheetos extruded snacks, Uncle Chipps and traditional snacks under the Kurkure and Lehar brands. The company‘s high fibre breakfast cereal, Quaker Oats, and low fat and roasted snack options enhance the healthf ul choices available to consumers. Frito Lay‘s core products, Lay‘s, Kurkure, Uncle Chipps and Cheetos are cooked in Rice Bran Oil to significantly reduce
  • 36. saturated fats and all of its products contain voluntary nutritional labeling on their packets. The group has built an expansive beverage and foods business. To support its operations, PepsiCo has 43 bottling plants in India, of which 15 are company owned and 28 are franchisee owned. In addition to this, PepsiCo‘s Frito Lay foods division has 3 state -of- the-art plants. PepsiCo‘s business is based on its sustainability vision of making tomorrow better than today. PepsiCo‘s commitment to living by this vision every day is visible in its contribution to the country, consumers and farmers. COCA-COLA Coca-Cola, the corporation nourishing the global community with the world‘s largest selling soft drink concentrates since 1886, returned to India in 1993 after a 16 year hiatus, giving new thumbs up to the Indian soft drink market. In the same year, the Company took over ownership of the nation‘s top soft -drink brand and bottling network. It‘s no wonder our brands have assumed an iconic status in the minds of the world‘s consumers Ever since, Coca-Cola India has made significant investments to build and continually consolidate its business in the country, including new production facilities, waste water treatment plants, distribution systems, and marketing channels. Coca-Cola India is among the country‘s top international investors, having invested more than US$ 1 billion in India in the first decade, and further pledged another US$100 million in 2003 for its operations. The Company has shaken up the Indian carbonated drinks market greatly, giving consumers the pleasure of world -class drinks to fill up their hydration, refreshment, and nutrition needs. It has also been instrumental in giving an exponential growth to the country‘s job listings. With virtually all the goods and services required to produce and market Coca-Cola being made in India, the business system of the
  • 37. Company directly employs approximately 6,000 people, and indirectly creates employment for more than 125,000 people in related industries through its vast procurement, supply, and distribution system. The Indian operations comprises of 50 bottling operations, 25 owned by the Company, with another 25 being owned by franchisees. Apart that, a network of 21 contract packers manufactures a range of products for the Company. On the distribution front, 10 -tonne trucks – open bay three-wheelers that can navigate the narrow alleyways of Indian cities – constantly keep our brands available in every nook and corner of the country‘s remotest areas.
  • 38. PEPSI VS COCA-COLA Marketing Control of market share is the key issue in this c ase study. The situation is both Coke and Pepsi are trying to gain market share in this beverage market, which is valued at over $30 billion a year. Just how this is done in such a competitive market is the underlying issue. The facts are that each company is coming up with new products and ideas in order to increase their market share. The creativity and effectiveness of each company's marketing strategy will ultimately determine the winner with respect to sales, profits, and customer loyalty. Not only are these two companies constructing new ways to sell Coke and Pepsi, but they are also thinking of ways in which to increase market share in other beverage categories. Although the goal of both companies is exactly the same, th e two companies rely on somewhat different marketing strategies. Pepsi has always taken the lead in developing new products, but Coke soon learned their lesson and started to do the same. Coke hired marketing executives with good track records. Coke also implemented cross training of managers so it would be more difficult for cliques to form within the company. On the other hand, Pepsi has always taken more risks, acted rapidly, and was always developing new advertising ideas . Both companies have also relied on finding new markets, especially in foreign countries. In the foreign markets, Coke has been more successful than Pepsi. For example, in Eastern Europe, Pepsi has relied on a barter system that proved to fail. However, in certain countries that allo w direct comparison, Pepsi has beat Coke. In foreign markets, both companies have followed the marketing concept by offering products that meet consumer needs in order to gain market share. For instance, in certain countries, consumers wanted a soft drink that was low in sugar, yet did not have a diet taste or image. Pepsi responded by developing Pepsi Max.
  • 39. These companies in trying to capture market share have relied on the development of new products. In some cases the products have been successful. However, at other times the new products have failed. For Coke, changing their original formula and introducing it as ―New Coke‖ was a major failure . The new formula hurt Coke as consumers requested Classic Cokes‘ return. Pepsi has also had its share of failu res. Some of their failures included: Pepsi Light, Pepsi Free, Pepsi AM, and Crystal Pepsi. One solution to increasing market share is to carefully follow consumer wants in each country. The next step is to take fast action to develop a product that meets the requirements for that particular region. Both companies cannot just sell one product; if they do they will not succeed. They have to always be creating and updating their marketing plans and products. The companies must be willing to accommodate their ―target markets‖. Gaining market share occurs when a company stays one -step ahead of the competition by knowing what the consumer wants. My recommendation is to make sure the company is always doing market research. This way they are able to get as much feedback as possible from consumers. Next, analyze this data as fast as possible, and then develop the new product based upon this data. Once the product is developed, get it to the marketplace quickly where time is a very critical factor.
  • 40. PEPSI VS COCA-COLA Advertising Strategies PEPSI For over 100 years, Pepsi-Cola has produced some of the finest soft drink ads available anywhere in the world. From today's "Joy of Pepsi," as sung by Britney Spears, to yesterday's "Nickel, Nicke l" (1939), our ads are as memorable as the products we produce. Some highlights of the Ads are given below. 1999: The new campaign highlights the popular soft drink that goes with everything from food to fun. • Pepsi's last major campaign change was in 1 999, when it debuted "The Joy of Cola," which became "The Joy of Pepsi" in 2000. • Pepsi updates its look with a bolder, more contemporary image that better captures the brand's youthful attitude. • Mountain Dew offers its third line extension with Mount ain Dew LiveWire, combining the unique citrus taste of Mountain Dew with a bold orange flavor. • Pepsi's blockbuster summer promotion "Pepsi Play for a Billion" gives 1,000 consumers the chance to play for $1 billion on a live television show on The WB. A guaranteed $1 million prizewinner will be chosen and will then have a chance to win $1 billion without forfeiting the $1 million prize. • In September, Richard Bay, a 42 -year-old high school teacher from Princeton, West Virginia, became a millionaire on "Pepsi Play
  • 41. for a Billion" on The WB. Bay and the television audience then held their collective breath to see if he would also win the billion dollars. Instead, his number was two digits off the billion -dollar number, but Bay was still pleased with his co ol million. 2000: The popular Pepsi Challenge makes its return , and consumers across the country let their taste decide the best cola and one - calorie cola. Helping launch the Challenge is two of baseball's top sluggers – Sammy Sosa and Ken Griffey Jr. • On the airwaves, the "Joy of Cola" campaign is a hit as "Pepsi Girl" Hallie Eisenberg rocks with pop star Faith Hill and perennial rockers KISS. • Among those doing the Dew is hip -hop artist Busta Rhymes, and Aquafina launches it‘s first-ever television advertising campaign. 2001: The popular "Joy of Cola" tagline gets an update, becoming the "Joy of Pepsi." Three months later, Britney Spears stars in a blockbuster Pepsi commercial that breaks during the Academy Awards. An hour before the telecast, the high -energy spot debuts online, where more than 2 million fans click their way to Britney's own version of the "Joy of Pepsi." Thirsty consumers are invited to "discover a sensation as real as the streets," when cherry-flavored Mountain Dew Code Red is introduced. Pepsi puts a little twist on a great thing, unveiling the first national TV commercial for new lemon-flavored Pepsi Twist. 2002: In March, supermodel Cindy Crawford helps introduce a new look for Diet Pepsi. The updated graphics better represent the brand's light, crisp, refreshing qualities. • Pepsi-Cola teams up with the National Football League, b ecoming its Official Soft Drink Sponsor.
  • 42. • Pepsi declares, "It's a blue thing," and unveils Pepsi Blue in July. A fusion of berries with a splash of cola, the blue -hued soft drink is created by and for teens. Through nine months of research and development, Pepsi asks young consumers what they want most in a new cola. Their response: "Make it berry and make it blue." • In December, American music and film sensation Beyoncé Knowles is welcomed as the newest member of the Pepsi family. 2003: Pepsi-Cola unveils a new advertising campaign, "Pepsi. It's the Cola," which is the brand's first major campaign shift since 1999. The new campaign highlights the popular soft drink that goes with everything from food to fun. • Pepsi's last major campaign change was i n 1999, when it debuted "The Joy of Cola," which became "The Joy of Pepsi" in 2000. • Pepsi updates its look with a bolder, more contemporary image that better captures the brand's youthful attitude. • Mountain Dew offers its third line extension with Mo untain Dew LiveWire, combining the unique citrus taste of Mountain Dew with a bold orange flavour. • Pepsi's blockbuster summer promotion "Pepsi Play for a Billion" gives 1,000 consumers the chance to play for $1 billion on a live television show on The WB. A guaranteed $1 million prizewinner will be chosen and will then have a chance to win $1 billion without forfeiting the $1 million prize. • In September, Richard Bay, a 42 -year-old high school teacher from Princeton, West Virginia, became a millionaire on "Pepsi Play for a Billion" on The WB. Bay and the television audience then held
  • 43. their collective breath to see if he would also win the billion dollars. Instead, his number was two digits off the billion -dollar number, but Bay was still pleased with hi s cool million. 2004: Pepsi unveils five new TV commercials for Pepsi and Sierra Mist on Super Bowl XXXVIII, making this the 19th straight year that Pepsi has advertised in the big game. • On Super Bowl Sunday, Apple and Pepsi officially launch a historic promotion to legally give away millions of free songs to Mac and Windows PC users from Apple's iTunes Music Store. • On the Academy Awards telecast, Diet Pepsi stole the spotlight as the country‘s fastest-growing major soft drink bowed a new advertising campaign with the tagline, ―Diet Pepsi. It‘s the Diet Cola. The zero-calorie cola brand illustrates how it is the best option to go with food and social occasions, much like its sister brand, Pepsi-Cola. • Two popular sportscasters help turn life‘s every day moments into a cause for celebration in a new advertising campaign for Pepsi EDGE, the new cola with full -flavored taste but half the sugar, carbs & calories of regular colas. The campaign tagline, "This moment deserves a Pepsi EDGE," reminds consumers that they can reward themselves with a Pepsi EDGE for completing even the simplest of tasks. • Mountain Dew brings nostalgia back into pop culture as it introduces new commercials featuring the classic Mad Magazine "Spy vs. Spy" characters — that will stop at nothing to get their Dew.
  • 44. COCA-COLA As the world's favourite drink, the world's most valuable brand and the most recognizable word across the world after ‗OK‘; Coca -Cola has a truly remarkable heritage. From a humble beginning in 1886, it is now the flagship brand of the largest manufacturer , marketer and distributor of non-alcoholic beverages in the world. Coca-Cola returned to India in 1993 and over the past ten years has captured the imagination of the nation, building strong associations with cricket, the thriving cinema industry, music etc. Coca-Cola has been very strongly associated with cricket, sponsoring the World Cup in 1996 and various other tournaments, including the Coca-Cola Cup in Sharjah in the late nineties. Coca-Cola's advertising campaigns ―Jo Chaho Ho Jaye and Life ho to Aisi‖ were very popular and had entered the youth's vocabulary. 2002:Coca-Cola launched the campaign " Thanda Matlab Coca- Cola" which sky-rocketed the brand to make it India's favourite soft-drink brand. 2003: Coke was available for just Rs. 5 across the country and this pricing initiative together with improved distribution ensured that all brands in the portfolio grew leaps and bounds. Coca-Cola had signed on various celebrities including movie stars such as Karishma Kapoor, cricketers such as Srinath, Sourav Ganguly, southern celebrities like Vijay in the past and today, its brand ambassadors are Aamir Khan, Aishwarya Rai, Vivek Oberoi and cricketer Virendra Sehwag.
  • 45. PEPSI VS COCA-COLA Conclusion This project has been helpful in understanding the meaning of Brand Rivalry. It was noted that Brand Rivalry is an extra aggressive in competition between two different brands to reach at number one or to capture more market share. In the most aggressive variants, ethics, moral values and even the law can be neglected and it is only a race to reach the number one position which drives the brand. Through this project we were able to understand how Pepsi & Coca - Cola were formed and the problem faced by them in the initial years of operation and how did they overcome all those difficulties. This project made known to us how Pepsi & Coca -Cola being the prominent brand rivalries fought fiercely against each other through their production tactics, marketing strategies and advertisements. All through this war which continues even to this day, both the brands have done their level best to convince the people that one is better than the other. Through this project we also discussed various differences that exist between the strategies and techniques adopted by both of them to sell out their product. Therefore, I hope that the project has met its aim. In fact, all of the battles have seen a conclusion....a victor and a loser; but in the case of Pepsi & Coca -Cola, while both sides still claim a victory, the jury is still out the public is still undecided and the soda still stands in solitude. As the bottom line conclusion, the battle of Coca -Cola versus Pepsi does not seem to end. It is like they are arch enemies for each other. Nevertheless, it is always interesting to see the market battle between these two soft drink products.
  • 47. Pictures to be attached Attn: Attach these pictures on the backside of the page which is adjacent to the relevant page. Prominent electronics & information technology brands Prominent toffee & confectionary brands
  • 49.
  • 50.
  • 51. Pepsi’s new logo The drugstore of Caleb Bradham, inventor of Pepsi, as portrayed in the "Bern New Bern" exhibition in the Historical Museum Bern. The original stylized Pepsi-Cola logo
  • 52. The second stylized Pepsi-Cola logo Pepsi’s 12 oz bottle of 1936
  • 53. 1940’s advertisement specifically targeting African Americans, A young Ron Brown is the boy reaching for a bottle.
  • 54. Logo of Frito-Lay Logo of Tropicana Logo of Pepsi
  • 55.
  • 56. Logo of Coca-Cola Coca-Cola vending machine Coca-Cola being bottled
  • 57. A corner store in Goa,,India where the Coca-Cola signs advertise 200 ml bottles of coke at five Indian rupees.
  • 58. Coca-Cola founders Asa G. Candler and Dr. John S. Pemberton are seen together at Asa G. Candler & Co. pharmacy, 47 Peachtree St., Atlanta in the only extant albumen photograph from 1888. Also shown is the biography of Candler written by his son, Charles Howard Candler. An Old German Coca-Cola bottle opener Believed to be the first coupon ever, this ticket for a free glass of Coca-Cola was first distributed in 1888 to help promote the drink. By 1913, the company had redeemed 8.5 million tickets.
  • 59. This Coca-Cola advertisement from 1943 is still displayed in the small city of Minden, Louisiana.
  • 60. Original framed Coca-Cola artist's drawn graphic presented by The Coca-Cola Company on July 12, 1944 to Charles Howard Candler on the occasion of Coca-Cola's "1 Billionth Gallon of Coca-Cola Syrup." Legended to be the first installation anywhere of the 1948 model "Boat Motor" styled Coca-Cola soda dispenser, Fleeman's Pharmacy, Atlanta, Georgia. The "Boat Motor" soda dispenser was introduced in the late 1930's and manufactured till the late 1950's. {Photograph circa 1948} New Coke can
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  • 66. Mock-up of Coke dispenser flown aboard the Space Shuttle Discovery in 1995, on display at the Astronaut Hall of Fame.
  • 67. Coke and Pepsi cans flown aboard STS-51-F on display at the National Air and Space Museum Silver Spring’s Virgin Cola
  • 68. Sainsbury's store brand Classic Cola
  • 69. Indra Krishnamurthy Nooyi- CEO of PepsiCo at World Economic Forum annual meeting in Davos, Switzerland, January 2010
  • 70. Muhtar A. Kent-the Chairman and Chief Executive Officer (CEO) of the Coca-Cola Company.
  • 71. Team India after bagging Pepsi Cup sponsored by the PepsiCo M.S Dhoni; Shot from a Pepsi Ad
  • 72. ‘Coca-Cola sucks India dry’ People of India agitating against Coca-Cola factory