MARKETING MANAGEMENT – I

PROJECT REPORT
ON
PEPSI 1893

Submitted To: Submitted By:

Prof. Nanda Choudhury GROUP 5
Vanshika Jain (025037)
Sarthak Jain (025029)
Mebal Chaudary (025050)
Lakshyadeep Singh Chouhan (025018)
Alakshendra Sharma (025006)
Manyata Manocha (025053)

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 Acknowledgement

This Marketing project is an outcome of continuous guidance, motivation and support

provided to us throughout the work by Prof. Ayushi Sharma. The successful outcome
required a lot of assistance and we find ourselves extremely blessed to have received this sort
of support throughout the project. She has been a guiding spirit to lead us with the correct
methodology and approach to complete our project successfully. Her constant support and
guidance increased our interest towards the field of Marketing. We owe our thankfulness
towards her for taking out her valuable time in such critical conditions to guide us with the
correct inputs.

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CONTENTS
ABOUT THE INDUSTRY ............................................................................................................................ 4
ENVIRONMENTAL FORCES AFFECTING THE PRODUCT CATEGORY ........................................................ 4
PESTEL ANALYSIS................................................................................................................................. 4
Demographic Environment ............................................................................................................. 4
Socio Culture Environment ............................................................................................................. 4
Economic Environment ................................................................................................................... 4
Political Environment ...................................................................................................................... 4
Technological Environment ............................................................................................................ 5
Legal Environment .......................................................................................................................... 5
MICHAEL PORTERS FIVE FORCES ........................................................................................................ 5
INFERENCES ........................................................................................................................................ 5
STUDY OF COMPETITIVE BEHAVIOUR ..................................................................................................... 6
MARKET SITUATION ............................................................................................................................ 6
India’s carbonated soft drinks market has huge potential ............................................................. 6
MARKET STRUCTURE .......................................................................................................................... 7
OLIGOPOLY ...................................................................................................................................... 7
MAIN PLAYERS ........................................................................................................................................ 7
PARLE Agro Pvt. Ltd............................................................................................................................. 7
Hector Beverages Pvt. Ltd. .................................................................................................................. 8
Dabur India Ltd.................................................................................................................................... 8
Coca-Cola India Ltd. ............................................................................................................................ 8
MARKET LEADER ..................................................................................................................................... 9
PROFILE ............................................................................................................................................... 9
MARKETING STRATEGY ....................................................................................................................... 9
MARKET CHALLENGER ............................................................................................................................ 9
PROFILE ............................................................................................................................................... 9
MARKETING STRATEGY ....................................................................................................................... 9
MARKET FOLLOWER.............................................................................................................................. 10
PROFILE ............................................................................................................................................. 10
MARKETING STRATEGY ..................................................................................................................... 10
MARKET NICHER ................................................................................................................................... 11
PROFILE ............................................................................................................................................. 11
MARKETING STRATEGY ..................................................................................................................... 11
REFERENCES .......................................................................................................................................... 12

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ABOUT THE INDUSTRY
Soft drinks are non-alcoholic beverages that are frequently but not always carbonated and
contain natural or artificial sweeteners, edible acids, natural or artificial flavours, and
occasionally juice.
Soft drinks come in a variety of flavours. In Europe and Latin America, mineral water is
widely popular. Kava is a beverage prepared from the roots of a bushy shrub. Soft drinks
containing soybean flour have been promoted in tropical locations where diets are usually
deficient in protein. A drink made from fermented stale bread is popular in Europe. A famous
Israeli cocktail contains honey and orange juice.
Today, the soft drink industry is an extensively huge industry with a variety of portfolio of
products

ENVIRONMENTAL FORCES AFFECTING THE PRODUCT

CATEGORY
PESTEL ANALYSIS
Demographic Environment
The product will be launched in 1st and 2nd tier metro cities. Our target audience would be
adults over the age of 12, with no upper age limit. Our target customers will be from the
lower middle class, upper middle class, and upper class.
Socio Culture Environment
People are more health concerned as a result of the Covid-19 impact, and they are more
focused on something that will help their health in the long run and will not have any harmful
effects. Our customer base would grow as a result of this offering, particularly in urban
regions. Our key essential values of responsible farming management and environmental
production would be met by this product.
Economic Environment
Economic Situation: Low-cost and Best-Value' India is a low-middle-income country. Delhi
and Mumbai, with populations of 25.87 million and 19.32 million, respectively, are the most
populous cities in India, followed by Kolkata (14.42 million), Bangalore (10.14 million),
Chennai (9.68 million), and Hyderabad (9.68 million) (8.7 million). These six cities, or eight
if Ahmedabad (7.11 million) and Pune (5.75 million) are included, have traditionally been
regarded Tier 1 cities. Surat (5.67 million people) is India's ninth most populous city, and
there's a big gap between Surat and tenth-placed Jaipur (3.43 million people) and smaller
cities after that.
With a population of 1.3 billion people, the country as a whole may appear appealing as a
market; nevertheless, at this time, only the eight to ten cities with populations of over five
million people (a total of roughly 100 million people) could be regarded viable. Nonetheless,
due to their enormous populations, these cities' purchasing power is stronger than that of big
Southeast Asian cities with equivalent income levels.
Political Environment
Some of the crucial aspects to examine in the political environment are tax and economic
policies, political stability, foreign trade rules, and employment legislation. India also has
relatively safe foreign policies, such as the Foreign Exchange Management Act of 1999,
which provide security and aid in the development of the country.
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Technological Environment
A company's utilisation of superior technology offers it a competitive advantage over its
rivals. Our competitive strength is determined by how we leverage technology in our
transformation process. In this age of globalisation, we must compete for product sales on
foreign markets. Companies that rely on antiquated technology will be unable to compete on
a global scale. As a result, technical advancement is critical in boosting the competitiveness
of businesses. Our main focus would be on AI, which will, by default, solve the majority of
our technological issues.
Legal Environment
Companies in India are obliged to have a thorough understanding of laws such as the
Companies Act 1956, the Consumer Protection Act 1986, the Industrial Disputes Act 1947,
and the Competition Act 2002, among others.
MICHAEL PORTERS FIVE FORCES

Industry Rivalry
• The market leader does not want any other rival in the market, therefore he or she
establishes an entry barrier for new products.
• Government policies and regulations, as well as existing product patent rights, function as
a barrier to new product entrance.
Threat of New Entrants
• Because the market share of a new product is so little, if another similar new product is
launched, our product may lose the small market share that it had previously.
Buyer Power
• Brand loyalty to an existing product can deter customers from switching to a new
product;
• The cost of switching from an existing product to a new product can also deter customers
from switching;
• Increased consumer awareness of carbonated drinks can deter customers from purchasing
carbonated beverages.
• As people become more mindful of their health and diet, there is a greater demand for
healthier drinks and beverages.
Threat of Substitution
• There is also competition from non-carbonated drinks such as fruit juices, milkshakes,
and other beverages that can be used as a substitute for our product.
• Customers' tastes and preferences may change, causing them to substitute our goods.
Supplier Power
• There are many providers of carbonated beverage raw materials in India. • PET bottles
and glass bottles are readily available.
INFERENCES
There is no single factor that determines how the macro environment influences management
decisions; rather, a combination of variables such as political, legal, economic, social,

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technological, and others work together to create it. These aspects must be evaluated in order
to make an informed decision.

To summarise, financial management and decision-making are heavily reliant on a few key
assumptions. These assumptions are largely dependent on macro factors such as country or
global interest rates, a country's gross domestic product (GDP), the economy's growth rate,
production and sales numbers, population censuses, and so on. It clarifies to a large extent
how financial decisions might go wrong if macro variables are not properly studied.

STUDY OF COMPETITIVE BEHAVIOUR

MARKET SITUATION
India’s carbonated soft drinks market has huge potential
• The large base of the population, rising disposable incomes, and rapid urbanisation
are the most important drivers of the market. Moreover, long summers ranging from April
and lasting up to August create a robust demand for carbonated drinks within the country.
So, the best time to launch this product will be in summers.
• Pepsi decision to target the Indian market to drive is a smart move. It is consistent
with in-house research, the performance of India’s carbonated soft drinks market is
forecasted to grow with a CAGR of 7.7% for the period 2018 – 2023, which is
anticipated to drive the market to a worth of $12bn in 2023.
Global Soft Drinks Market will be valued at US$1. 4 Trillion by the Year 2027, growing at a
CAGR of 4.9% over the analysis period 2020-2027. Amid the COVID-19 crisis, the
worldwide marketplace for Soft Drinks estimated at US$994. 7 Billion within the year 2020,
is projected to succeed in a revised size of US$1Trillion. – Global news wire.
According to “India Carbonated Drinks Market Overview”, Carbonated or aerated drinks
account for over 40% of the whole non-alcoholic beverages market in India. The
world still has been under the duopoly of Coca Cola and PepsiCo since an extended time. The
Coca-Cola Company leads the planet and therefore the Indian marketplace for carbonated
beverages with share of quite 48% in 2015. the opposite a part of the duopoly within
the global still as Indian carbonated drinks market is handled by PepsiCo Inc. The Coca-Cola
Company has historically been considered PepsiCo's primary competitor within the beverage
market. Coca-cola was born in 1887 and Pepsi in 1898, in India Coca-Cola was forced to
close its operations in 1970's. Its competitor- Pepsi entered Indian Market in 1989.
The second time Coca-cola entered into India in 1993. to create its presence in Indian Market
Coca-cola paid about Rs. 175 crores to acquire Thums-up, Limca, Citra and Gold Spot
brands. There are many players operating from a smaller level and contributing to the
segment, but due to lack of brand awareness and low market share these players find it hard
to compete with big players like Pepsi and Coca-Cola who dominate the industry. The
industry doesn't face any major threats from new entrants because Coca-Cola and PepsiCo
each have an in depth bottling and distribution network and big economies of scale.

However, according to a story published within the economic times, Regional ready-to-drink
beverages brands, including Bovonto, Jayanti Cola, Sosyo, Runner and Kashmira, put
together grew over twice the speed of national players like Coca-Cola and PepsiCo in the
year 2019.

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Hyper-Localisation Strategy Is An Efficient And Growing Trend\
Hyper-localisation is an increasingly effective strategy within the buyer goods market, It
magnifies the ability to deepen the connection between consumers and multinational brands.

MARKET STRUCTURE
OLIGOPOLY
• The market structure is Oligopolistic competition between Pepsi and Coca cola. These
firms constitute of majority of carbonated drinks industry and haven't agreed to
match prices or collaborate formally or informally. Although they're mutually and
strategically similar to one another.
• A reduction in value in an oligopolistic market structure is often beneficial for the
consumers because it provides them with a range of cheaper close substitutes. the
sole stakeholder with a negative impact would be the firms, as lower prices would mean a
lower margin of profitability.

MAIN PLAYERS
PARLE Agro Pvt. Ltd.
Frooti, Appy, LMN, Hippo, and Bailey are owned by Parle Agro, an Indian private limited
firm created in 1984. They are India's largest food and beverage conglomerate. With a
presence in more than 50 countries, they are recognized as one of the first Indian food and
beverage enterprises to go global

2013 Parle Agro's re-entry into the CSD industry has been
marked by the launch of two new beverage brands:
Cafe Cuba, a carbonated coffee-flavored soft drink,
and Frio, a line of wonderfully flavoured aerated
drinks.

2012 Launched India's first spice-based soda.

2009 With the introduction of Hippo, they expanded into the

snack food area, bringing them closer to their goal of
becoming a leader in the food and beverage market.

2005 Launched India's first sparkling Apple drink - Appy

Fizz available in a champagne-shaped PET bottle.

1993 With the debut of Bailey, the company sold its

carbonated beverage rights to Coco-Cola and joined
the packaged drinking water business.

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Hector Beverages Pvt. Ltd.
• Neeraj Kakkar, Neeraj Biyani, Suhas Misra, and James Nuttall established Hector
Beverages in 2009.
• The company's debut product was Frissia, a protein drink, which was followed by Tzinga,
an energy drink, in 2011.
• The Company moved its focus to the ethnic drinks category in March 2013, when it
introduced Paper Boat, a fruit pulp-based beverage brand. The Paper Boat brand aims to
reintroduce traditional Indian drinks into a modern setting.
• The brand's conception is supposed to have occurred during one of the co-founders' early
workplace lunches. Mishra's mother used to bring him a flask of Aam Panna every day,
and one day, when they were musing over business ideas, a thought occurred to them to
commercialise ethnic Indian drinks that were previously inaccessible in the market. Paper
Boat was born as a result of this.
• The company began with Aam Panna and Jal Jeera drinks and has now expanded to
include Aam Ras, Chilled Rasam, Kokum, Jamun Kala Khatta, Chilli Gauva, and Neer
More among other ethnic beverages.
• When co-founders Misra and Nuttall left the company in 2014 and 2015, leaving Kakkar
and Biyani in charge, the company went through a few organisational adjustments.
• Paper Boat launched 500 ml Tetra Prisma Aseptic (TPA) packets of its two most popular
drinks, Aam Ras and Anar, in 2016 in an attempt to enhance in-house usage of the brand.
In 2017, the company increased its offering by selling its drinks in 1 litre Tetra Prisma
Aseptic cartons, which replaced the 500 ml packets. The brand's reach within the multi-
serve sector was increased as a result of this shift.
• In 2016, Paper Boat entered the traditional food category with the launch of the Indian
snack peanut chikki, as well as books. Paper Boat Foods' fundamental brand strategy is to
give ethnic Indian snacks in modern, contemporary packaging. Paper Boat recently
partnered with Accenture to expand their menu of authentic flavours in 2020.
Dabur India Ltd.
Dabur India Ltd is one of India's most well-known FMCG companies. With a range of over
250 Herbal/Ayurvedic products, the company is also a world leader in Ayurveda. They are
involved in important consumer product categories such as Hair Care and Oral Care. Foods,
Health Care, Skin Care, and Home Care Five flagship brands with distinct brand identities are
part of the Company's FMCG portfolio. Dabur is the leading brand in natural health care.
Vatika is a high-end personal care brand. Hajmola is a digestive hajmola. Fem for fairness
bleaches and skin care products, and Real for fruit juices and beverages. The Company
operates through three business units namely consumer care division (CCD) international
business division (IBD) and consumer health division (CHD).

Coca-Cola India Ltd.

Coca-Cola India is a leading beverage company in India, providing consumers with a variety
of healthy, safe, high-quality, refreshing beverage options. Since its re-entry in 1993, the
Company has built an unrivalled beverage portfolio, refreshing consumers with leading
beverage brands such as Coca-Cola, Coca-Cola Zero, Diet Coke, Thums Up, Fanta, Fanta
Green Mango, Limca, Sprite, Sprite Zero, VIO Flavored Milk, Maaza, Minute Maid range of

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juices, Georgia and Georgia Gold range of hot and cold tea and coffee options, Kinley and
Bonaqua packaged drinking water, Kinley Club Soda and BURN energy drink.
Through a broad network of over 2.6 million retail locations, the Company and its bottling
partners touch the lives of millions of people. Its brands are among the most popular and
widely distributed beverages in the country.

MARKET LEADER
Coca-Cola India has the greatest market share and is usually first to introduce new products,
expand distribution, and increase promotional intensity.

PROFILE
Coca-cola India Pvt. Ltd.
The Company has a market share of 60% in the carbonated soft drinks market, 36% in fruit
drinks segment and 33% in packaged water segment.

MARKETING STRATEGY
In 2019, Coca-Cola India launched Colour, a juice-based carbonated extension of its Minute
Maid brand manufactured from grapes cultivated in South India, in Tamil Nadu, where soft
drinks were once known as "colour."
They also used Indian terms on their packaging to localise their share a coke campaign, striking
the Indian consumer with the power of relationships.
They invest in brand building by enlisting the help of well-known celebrities as brand
ambassadors.
They give each product its own identity: Thums-Up (aaj kuch toofani karte hain) is connected
with energy and adventure, whereas minute maid is for health-conscious people.

MARKET CHALLENGER
A market challenger is a company with a lower market share than the market leader but
enough clout to exert upward pressure in an attempt to win greater control.

PROFILE
Pepsico India Holdings Pvt. Ltd.
The company has a significant presence in India and is a hard competitor to Coca-Cola. The
two beverage behemoths have frequently participated in 'cola wars,' as they are affectionately
known.

MARKETING STRATEGY
The Company from time to time has attempted to attract youth through specific efforts such
as the swag campaign (tagline: har ghoont mei swag), Youngistaan campaign, and others
(tagline: youngistaan ka wow)
To answer to evolving consumer preferences, the company has introduced a wide selection of
health-conscious goods that are low in sugar and high in nutritional content. Simultaneously,

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it has changed the packaging and portion sizes of its products, such as offering clients smaller
250 ml plastic bottle sizes of diverse drinks that suit both their pockets and preferences. Its
growth plan is built on attractive price, packaging, and a product strategy that includes
healthy and nutritious options. The company is also aiming to lower production costs and
lessen its environmental effect by changing its supplier chain.

MARKET FOLLOWER
A company that lets other, more powerful companies lead the way in the marketplace in
which it operates. It can keep a close eye on what's going on at major market leaders and try
to imitate or improve on their product launches and marketing strategies.
Counterfeiter or Fraudster
These are me-too brands whose product and packaging may be identical that of leader, but
brand name is slightly different. For eg- choco cola or coco cola.
Adaptor
Some followers prefer to adapt the leader’s products and improve them. They make necessary
changes/improvements in the original products and develop little different products.

PROFILE
Parle Agro Pvt. Ltd.
The Mumbai-headquartered company today makes Frooti, Appy, Appy Fizz, baked snacks,
toffees and Bailley packaged drinking water, and has a turnover of Rs. 2,500 crore. It had
sold its iconic soft drink brands namely Thums Up, Limca, Gold Spot and Citra, to Coca-
Cola over two decades ago.
In 2013, ParleAgro is re-entered the carbonated soft drink (CSD) segment with its new
coffee-flavored fizzy drink, Café Cuba.
MARKETING STRATEGY
The company used the market penetration strategy which allowed it to capture both rural as
well as urban markets by depicting itself as value for money product.
It was the first brand to use PET bottles. PET bottles were handy and easy to carry
It sponsored the most loved show back then shaktiman and tried to capture the audience from
there.
ParleAgro is planning to enter into the healthcare segment with his products by launching
Parle Bailey Digestive Water’ very soon

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MARKET NICHER
Serve small segments of the industry that the larger firms don’t reach. These segments often
have special needs.
PROFILE
Dabur India Ltd.
Dabur one of the greatest FMCG brand in India has been selling natural product juices and
nectars under Réal brand for the beyond twenty years. Dabur India Ltd in 2016, reported its
introduction to the bubbly beverages market with the dispatch a scope of organic product
juice-based circulated air through drinks, under the brand – Real VOLO. Réal VOLO range
contains 20-25% natural product juice content making the fun of bubble better with the
decency of organic products.
Dabur's image Hajmola has a solid value of chatpata ethnic taste and keeping that it mind,
they broadened their famous stomach related brand Hajmola into the prepared to-drink
refreshment class. The new beverage brand — dedicated Hajmola Yoodley — was
dispatched in six Indian flavors.

MARKETING STRATEGY
There is no segment in the company for the ready-to-eat segment till now and intemnds to put
more focus on beverage market till now.
Dabur Foods will be going to boost Real and Activ. Real has seen 45 per cent growth, while
Activ is growing at 70 per cent. In bothe of these products there is a possibility of launch of
new variations also.

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 REFERENCES

• https://www.globenewswire.com/news-release/2020/07/08/2059404/0/en/Global-Soft-
Drinks-Industry.html
• https://www.researchandmarkets.com/reports/3643987/india-carbonated-drinks-market-
overview
• https://economictimes.indiatimes.com/industry/cons-products/fmcg/regional-drink-
brands-grew-at-twice-the-rate-of-pepsi-coca-cola/articleshow/74218961.cms?from=mdr
• https://www.thehindu.com/business/Industry/parle-agro-reenters-fizzy-drinks-
market/article5164602.ece
• https://notesmatic.com/pepsi-business-growth-and-marketing-
strategies/#:~:text=Digital%20strategy%20is%20a%20very,of%20its%20sales%20and%
20profits.&text=Apart%20from%20promoting%20its%20brands,loyalty%20and%20high
er%20customer%20engagement
• https://www.financialexpress.com/archive/parle-agro-packing-an-aggressive-
punch/50639/#:~:text=In%20a%20bid%20to%20promote,this%20year%2C%20informs
%20Mr%20Chauhan

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