INDIAN SOFTDRINKS MARKET HISTORY OF RIVALRY AND BUSINESS STRATEGY..

1. A Case Study of PepsiCo & Coca-
Cola Limited
Researcher:- Dr. M. K. Gupta
Shreelata Neelesh.
BY-
Rajani .Raising
Reenu. Singh.

2. The Indian soft drinks industry has
witnessed a
radical in the last few year. In
India, after the
exit of Coke in 1977, Parle and Pure
drinks
controlled the soft drinks market.
Parle introduced Thumps Up
in the beginning of 1980s. Until
1991, the domestic market was

3. Strategy
According to Thompson & Strickland ,” A company’s strategy
consists of the combination of competitive moves & business
approaches that managers employ to please
Customers, compete successfully, & achieve organizational
objectives.”

4. The Level At Which Strategies Have Implication
Are

5. 1. To study of the major strategies implemented
by the soft drink companies.
2. To know about the effect of these strategies.

6. o PRIMARY DATA:-
The primary data has been
collected through survey method. Data was collected
both consumers and retailers. Questionnaires were
used to collect data.
o SECONDARY DATA:-
The secondary data was
collected through
Newspapers, Journals, Magazines, References
Books and Internet.

8. Major Players in Soft drinks Industries
The major players in the soft drink market in India are Coca- Cola & PepsiCo.
COCA-COLA LIMITED
COCA-COLA INDIA
Coca- Cola was the leading soft drink s brand in India until
1977. After that Government
Reduce its equity stakes required under F.E.R.A. i.e. Foreign
Exchange regulation Act.
After a gap of 16 years , Coca-cola returned India in 1993.
Coke has portfolio of more than 3000 beverages which ranges
from diet & regular sparkling beverages to still beverages such
as 100% fruit juices & fruit drinks , waters, sport drinks, teas &
coffee, & milk & soy-based beverages.

9. YEAR MAJOR EVENT
1886 Coca cola was created by John Pemberton, a pharmacist in Atlanta, Georgia, who sold a
syrup mixed with fountain water as a potion for mental disorder.
1887 Coca-Cola was registered as a trademark.
1895 Cola-Cola was being sold in every state & territory in U.S.A.
1899 Coca- Cola franchised its bottling operations in U.S.
1906 Coke’s first bottling plant was opened in Canada, Cuba & Panama.
1920’s Coke bottled in 27 countries , In spite of this reach volume was low quality &
inconsistent & effective advertising was challenge with language, culture, &
Government regulation all serving as barriers.
1941 ll nd World war “ Every man in uniform gets coke for 5 cents”, even served world war
troops.
2003 Coke generated 70% of its income outside India.
2008 Coke generated 85% of its income outside India.

10. In June 1990, Pepsi was launched in India under the brand name
of Lehar Pepsi.
Pepsi was marketed as Lehar Pepsi till 1991 . Till this time
Foreign brands was not allowed in India.
According to a news report in ET dated on 9th of July 2009
,PepsiCo recorded a 30% growth in 2009 against 12 % in the
same quarter in 2008.
PepsiCo scaled up its investments in the beverages business to
about Rs. 1000 crore ( $220 million) in 2009.

11. YEAR MAJOR EVENTS
1898 Pepsi was 1st introduced in Carolina by Caleb Bradham. Celeb used to make it at
his pharmacy which sold the drink , It was known as “Brad’s drink” & later Pepsi
Cola.
1903 Bradham sold 7,968 gallons of syrup , Pepsi was officially registered at the US
patent office.
1904 Pepsi is sold in 6 ounce bottle & sales increased to 19,848 gallons.
1905 Pepsi received its original logo design .
1926 Pepsi received its 1st logo redesign since the original design of 1905.
1929 Logo was changed again.
1931 Pepsi – Cola company went bankrupt during the great depression. It was in
large part due to financial losses incurred by speculating on wildly fluctuating
sugar prices as a result of World War I . Magargel bought Pepsi trademark.
1939 Again bankruptcy ,Pepsi assets purchased by Charles Guth , the President of

12.  Coca- Cola India announced the launch of
its innovative “Limca Laptop Ki Barish”
consumer initiative nationally on 30th July
2009.
 As part of this unique initiative, a
computer generated lucky draw would
provide consumers a chance to win “HP
Mini Laptop” every hour for next 45 days.
 This initiative was applicable to 200ml,
300ml, returnable glass bottles [RGB] and
so on 500ml, 600ml, 1.25,1.5, & 2.25 litres
PET bottles of Limca.

13. Response. No. of Respondents. Percentage.
Sales Promotion 66 60
Schemes are Available
Sales Promotion 44 40
Schemes are NOT
Available
Total 110 100
Source: Survey
-The survey shows that 60% of the respondent take benefit of sales promotion schemes
- 40% Of the respondents do not take any benefit of the sales promotion schemes offered
to them free coupons, etc.
- Survey shows that many customers are still not being attracted towards the sales
promotion schemes offered to them.
- Hence the companies may seek to identify other innovative schemes for wooing such
customers.

14. Trade Promotion Strategies
-These strategies are run for the retailers.
-Retailers are offered trade- schemes like certain number
Of bottles free per case, display schemes, target schemes
& other benefit like installation of refrigeration facilities,
putting up of their walls, upgrading existing refrigeration
facilities, filling of their walls, giving them umbrellas &
Sunshades.
Softdrinks try to their products available wherever people tend to gather like
railways stations , bus stops, near large offices & movie halls.

15. Response No. of Respondents Percentage
Total Promotion are 51 100
Available.
Total Promotion are NOT 0 00
Available.
Total 51 100 Source: Survey
-The survey results show that all the 51 retailers were getting benefits in the form of
trade
Promotion schemes like sign boards, visi coolers, banners, chairs, & tables.
-Companies are reaching out to the retailers to provide them with these
promotional
Tools.

16. In Rural areas, average daily wage is around Rs. 100 , whereas
the cost of a bottle of Coke was Rs. 10, affordability was a big
issue, it was perceived as a luxury that only a few customer
could afford to purchase.
Coca- Cola launched the Accessibility campaign. It introduced
new 200ml bottle, smaller than traditional 300ml bottles.
Coke also cut the price to half i.e. Rs. 5.
This pricing strategy closed the gap between Coke & basic
refreshments like lemonade & tea. This made soft drinks truly
accessible for the first time for rural consumers.

17. Options No. of Respondents Percentage
200 ml bottle 10 9.1
300 ml bottle 38 34.5
500 ml bottle 24 21.8
2 litre bottle 20 18.2
Tin cans 18 16.4
Total 110 100
Source: Survey
•It is clear from the above survey that the most preferred size is
the
300 ml bottle followed by the 500 ml bottle.
• The companies should be careful that the supply of these two
bottles
Sizes should always be stringently monitered & it should not fall
below
The actual demand.

18. •Developing world class •Good distribution
advertising campaigns. channel.
•Introducing new can •Innovating healthy
and bottle design. products.
•Responsiveness •Providing the Coca-
towards customer Cola experience.
needs
.

20. -Early Entry strategy Advantage reaped by Pepsi has been
serving it well till now.
- Pepsi is the market leader & Coke occupies second spot.

21.  Survey results analysis shows :-
 70% Respondents feel the need of Home delivery facility, but only a little
over 50% of Respondent are getting facility.
 The retailers are getting trade promotion schemes from companies.
 60% of the respondents avail the sales promotion schemes offered to
them.
 The survey results 96.4% watch Ad’s. It reveals 78.3 % respondents could
correctly recall that “Aa Tu Jashn Mana Le” Ad was of Coke. This is a very
high percentage of recall & it shows that Ad’s is effective. Hence the
company may increase advertising expenditure.
 Coke’s Failure to sell the American way of life in its initial phase & the
subsequent realization of its error was followed by the localization
strategies which have been very successful for the Cola majors in India.
 Pepsi is the market leaders in softdrink industry in India

22.  Supply chain management has gained
importance
in India in recent past. By fostering better &
long term relations with suppliers &
partnering with them, both companies would
stand to gain.
 As far as the product line is concerned , the
survey results clearly shows that the most
preferred sizes should not fall below the
actual demand.

23. THANK YOU