1. CONTENTS
CHAPTER-I
INTRODUCTION
Need for the study
Objectives of the study
Research methodology
Scope of the study
Limitations of the study
CHAPTER-II
INDUSTRY PROFILE
CHAPTER-III
COMPANY PROFILE
CHAPTER-IV
LITARETURE RIVIEW
CHAPTER-V
DATA ANALYSIS
FINDINGS
SUGGETIONS
QUESTIONNAIRE
BIBLIOGRAPHY
3. Advertising is an art not a science. Effectiveness of which cannot be measured
with a mathematical or empirical formula some advertisers argue that advertising
efforts go to waste, but every advertiser is keenly interested in measuring or in evaluation
of advertising effectiveness. Testing for the effectiveness of advertisement will lead
advertisement testing must be done either before or after the advertisement has done in
the media. It is of two types, protesting which are done before the advertisement has been
launched and one is referred to as cost testing which is done before the advertisement has
been launched and one is referred to as cost testing which is done after launching the
advertising campaign. The basic purpose of advertising effectiveness is to avoid costly
mistakes, to predict the relative
Strength of alternative strength of alternative advertising strategies and to increase
their efficiency. In measurement of advertisement effectiveness feedback is always useful
even if it costs some extra expenditure to the advertiser.
The objectives of all business are to makes profits and a merchandising concern
can do that by increasing its sales at remunerative prices. This is possible, if the product
is widely polished to be audience the final consumers, channel members and industrial
users and through convincing arguments it is persuaded to buy it. Publicity makes a thing
or an idea known to people. It is a general term indicating efforts at mass appeal. As
personal stimulation of demand for a product service or business unit by planting
commercially significant news about it in a published medium or obtaining favorable
presentation of it upon video television or stage that is not paid for by the sponsor.
On the other hand, advertising denotes a specific attempt to popularize a specific
product or service at a certain cost. It is a method of publicity. It always intentional
openly sponsored by the sponsor and involves certain cost and hence is paid for. It is a
common form of nonpersonal communication about an organization and or its products
idea service etc. that is transmitted to a target audience through a mass medium. In
common parlance the term publicity and advertising are used synonymously.
4. What is advertising?
The word ‘Advertising’ has its origin from a Latin word ‘Adventure’ which means to turn
to. The dictionary meaning of the word is ‘to announce publicity or to give public
concerned to a specific thing which has been announced by the advertiser publicity in
order to inform and influence them with
Reread them or pass them on to other. Some magazines have prestige value. The
marketer can cover national or large regional markets at a low cost per contract
(per individual reached). Magazines generally offer high-quality printing
of advertisement.
Simply stated advertising is the art "says green." Advertising is a general term for and all
forms of publicity, from the cry of the street boy selling newspapers to the most celebrate
attention attracts device. The object always is to bring to public notice some articles or
service, to create a demand to stimulate buying and in general to bring together the man
with something to sell and the man who has means or desires to buy".
Advertising has been defined by different experts. Some of the quoted definitions are:
According to American Marketing Association “Advertising is any paid form of
nonpersonal paid of presentation of ideas goods or services by an identified sponsor”.
Indian marketing association has defined advertising as “any paid form of nonpersonal
presentation and promotion of ideas, goods or services by an identified sponsor”. The
medium used are print broadcast and direct.
Stanton deserves that "Advertising consists of all the activities involved in presenting to a
group a non- personal, oral or visual openly, sponsored message regarding a product,
service, or idea. This message called an advertisement is disseminated through one or
more media and is paid for by the identified sponsor.
5. Advertisement carries:
In business world the terms in mainly used with reference to selling the product of
the concern. The advertising, as Jones defines it is "a sort of machine made mass
production method of selling which supplements the voice and personality of the
individual salesman, such as manufacturing the machine supplements the hands of the
craftsman." It is thus a process of buying/sponsor/identified media space or time in order
to promote a product or an idea. From a careful scrutiny of the above definition, the
following points emerge:
Advertising is a paid form and hence commercial in nature. This any sponsored
communication designed to influence buyer behavior advertising. Advertising is non-
personal. Unlike personal selling, advertising is done in a non- personal manner through
intermediaries or media whatever the form of advertisement (Spoken, written or visual).
It is directed at a mass audience and not directed at the individual as in personal selling.
Advertising promotes idea, goods and services. Although most advertising is designed to
help sell goods, it is being used increasingly to further public interest goals. Advertising
is identifiable with its sponsoring authority and advertiser. It discloses or identifies the
source of opinions and ideas. Advertising thus is: 1. Impersonal 2.A communication of
ideas. 3. Aimed at mass audience 4.By a paying sponsor. The two forms of
mass communication that are something confused with advertising or publicity and
propaganda. If we eliminate the elements of the "paying sponsor" (The paid requirement)
we would have the element of publicity left: For publicity is technically speaking,
advertisement without payment. In a similar manner. If we eliminate the requirement of
an "identified sponsor", the resulting communication is propagandistic. It is important for
us to emphasize that advertising may involve the communication of ideas or goods of
service. We are all aware that advertising attempts to sell goods and services. But we may
overlook the more important fact that it often sells ideas.
NEED OF THE STUDY
6. Need to doing the study on advertising effectiveness is whether the Advertising
campaign was successful or not, the awareness level of products, the advertising
campaign increased the customer base or not and which media carry the
advertisement successfully.
OBJECTIVES OF THE STUDY
1. To know the effectiveness of advertising towards Pepsi Co cool drinks.
7. 2. To understand the most effective media for advertisement for PepsiCo Cool drinks
3. To find out the reasons for liking the advertisement of PepsiCo cool drinks
METHODOLOGY
Research is a procedure of logical and systematic application of the fundamentals
of science to the general and overall questions of a study and scientific technique which
8. provide precise tools, specific procedure and technical rather than philosophical means
for getting and ordering the data prior to their logical analysis and manipulation.
Different type of research designs is available depending upon the nature of research
project, availability of able manpower and circumstances.
1. Research Design: The research design is the blueprint for the fulfillment of
objectives and answering questions. It is a master plan specifying the method and
procedures for collecting and analyzing needed information.
2. Data Collection Methods: The source of data includes primary and secondary
data sources.
Primary data: Primary data has been collected directly from sample respondents
through questionnaire and with the help of interview.
Secondary data: I was collected the secondary data from Standard textbooks,
Newspapers, Magazines and Internet sources.
3. Research Instrument: Research instrument used for the primary data collection
is Questionnaire.
4. Sample Design: Probability Sampling.
Sampling Technique: Convenience
Sample Size: 100 Respondents.
Area of Study: Dilsukh Nagar, Hyderabad.
Statistical Tool Applied: Percentage Analysis.
SCOPE OF THE STUDY
1. The study will attempt to find out the advantages level of products.
9. 2. The study can help to find out whether the advertisement is reached the target
audience.
3. The advertiser can identify the gap of improvement themselves.
4. The study can find out whether the advertisement was educating the customer in
right way or not.
.
LIMITATIONS OF THE SUDY
10. 1. The project relied mainly on the primary data.
2. Consumer gives very unclear picture.
3. The study is based on limited sample.
4. It begin my first attempt to undertake such a study, thus the inexperience is
also an obstacle to accomplish the project in a proper way.
5. The main limitation was time. There was problem to contacting the
businessmen and servicemen due to shortage of time with them.
6. The data is collected from the consumer is qualitative in nature. i.e. views,
opinions and perceptions. These factors may be changed from time to time.
11. CHAPTER – II
INDUSTRY PROFILE
Present soft drink boon in India was attributed to the legacy of Coca-Cola, which was
there in India till 1977. in today’s market the Coca-Cola (Coke, Thums Up, Fanta, Limca,
Sprite , Vanilla Coke, etc.) hold a 62% market share appears to bear concentrated rush to
beg a big share in the soft drink market.
12. Various national & multinational firms are engaged in soft drink market due to increase
in its demand day by day. As far as INDIA soft drink market is concerned there are major
company’s engaged having a big completion to capture the soft drink market are namely
Coca-Cola &Pepsi. While Campa Cola & many local cola’s still notice in the Indian
Market. Pepsi Cola attacked Coca-Cola before World War II. Coca Cola dominated the
American soft drink industry, Pepsi cola was a drink less to manufactures & with a less
satisfactory taste then Coke. Where as Coca-Cola major selling point was more drink for
the same price and Pepsi emphasized on advertising. During World War II Pepsi & Coke
both enjoyed increased sale. After the war Pepsi sale was started to fall relatively to
Coke, resulting the Coca-Cola had starting to click the Market share. A number of factory
contributed to Pepsi problem were poor image, poor taskforce, poor quality control etc.
At that point Alfred.N.Steeler came to the presidency of Pepsi cola with a great
reputation for merchandising. He and his staff recognized that the main hope lay
transforming Pepsi from a cheap imitator of Coke into a class on soft drink manufacturer.
By 1955 all Pepsi’s major weakness had been overcome, resulting sales had climbed
substantially. These actions from 1955 to 1960 led to a considerable sales growth for
Pepsi. In India another company engaged in soft drink market is Coca-Cola. It is one of
the most widely known, accepted and admired trademarks of the world. Coca-Cola was
their in India till 1977, when the Indian Government banned it due to strong resentment
against multinational company’s Coca-Cola was re-launched again in India in September
1993 at “HATHRAS” near Agra. The Indian people welcomed the comeback of their
most loved Cola in the country with great enthusiasm and vigor.
Coca-Cola marked its re-launching with acquiring five Parley drinks viz. Thumps Up,
Gold Spot, Limca, Citra, Maaza, Soda. Soft drink industry is one of the fastest growing
industries in India. The basic idea behind the rapid growth of this industry is due to
following reasons:
13. 1. The great corporate war between Coke & Pepsi, who left no stone unturned, for
monopolize the Soft Drink market.
2. The basic ideology of these two giants is to promote soft drinks as a food item in
India hold
3. The long hot summers in India have increased the consumption of soft drinks.
SOFT DRINK MARKET INDIAN SCENARIO:
India soft drink industry is witnessing a boom time. Its growth rate is around 20% with
which such growth rate, volume could reach billion creates within 10 years. There major
multinational companies are fighting to grab a major chunk of business from Indian
14. markets. These three coca-cola, Pepsi, Cadbury. All of these companies have seen an
enormous potential in this country. Consequently, by world standard, Indian per capita
consumption of soft drinks is still very low.
Therefore these soft drinks grants feel that fire capita consumption can only grow up.
Soft drink industries has already seen and estimated sale of around 240 million crates
higher than last year’s sale of 204 million in 1998. The Main reason for such a high
growth rate heightened competition between coca-cola and Pepsi, Cadbury, bring a new
entrant is for behind. India is actually more vivid in taste and preference than any other
country market. Delhi jar instance, account for about 20% of total soft consumption in
term of sales. There are about 4, 80,000 soft drinks retailers in India and their numbers
are increasing day today. This actually means that there is just one soft drink retailer on a
population of 37, 600, which is far below the international standard. Whereas Philippines
has one soft drink retail counter over a population of 150 people i.e. 4, 00,000 outlets on
a population of 60 million.
India is one of the top most five markets in terms of growth of the soft drink market. The
per capita consumption of the soft drinks in the country is estimated to be around six
bottles per annum in the year 2003. It is very low compared to the corresponding figures
in US (600+ bottles plant per annum).
The major players in the soft drinks market in India are PepsiCo and Coca-Cola, like
elsewhere in the world. Coca Cola acquired the number of local brands like Limca,
Thums Up when it entered in Indian market for the second time.
Pepsi's soft drink portfolio also consists of the Miranda and 7 Up along with the Pepsi.
The market share of each of the company is more or less same, though there is a conflict
in the estimate quoted by the different sources.
The major ingredient in the soft drink is water. It constitutes close to 91% of the soft
drink content. Added to this, the drink also contains sweeteners, Citric Acid, Malic acid,
Color, Preservative, and Antioxidant.
15. Cola war Between Pepsi & Coca-Cola:
Bottlers to enhance its control on manufacturing and marketing of its product range and
attain the quality standards of its class. Countering its Pepsi has taken the baton in its own
hands by floating and investment of $95 millions to set 6 PepsiCo. India Holdings, a
subsidiary for company’s owned bottling operation (COBO). Both of the companies are
following different path to reach the same destiny i.e. to fetch the bigger portion of
aerated soft drink market in India both the competitors have distinct vision and priorities
about the Indian soft drink market through having so much difference and distances with
each other, they both consider India as a huge potential market as per capita consumption
here in 3 servings per year against an international of 80. thought out, they are putting
their best efforts to woo Indian consumer who has to work for 1.5 hours to buy a bottle
crossover for both the athletes running for getting No.1 position Coca- Cola is well set
with it’s 53 bottling sites thought out the country giving it an edge over competition by
possessing a well built manufacturing and distribution set up on the side of picture, Pepsi,
with two more year in India, has been able to set an image of winner this giants are ready
to turn every stone of opportunity with a mindset of long tenure this time.
Coca –Cola has been penetrating the market through its wide product range with a
determinant to change competition pattern of soft drink in India Firstly, they upgrade the
whole industry by introducing 300ml bottles, which in turn, had given the industry a
booming growth of 20% as compared to earlier 5% they want to develop a coca culture
here and are working on a strategy to offer soft drink in every possible package. In Coca-
Cola camp, the idea of competition has not come from Pepsi, but from the other
beverages such as Tea, Coffee, Nimbu Pani, Water etc. Pepsi is quite aggressive in its
approach to Indian consumer. They are desperately working in the strategy to be winner
side in the hot cola war between two big barons. According to Pepsi philosophy it’s the
madness that encourages executives to thin to conjure up those creative tactics to knock
the fizz out of their competition. Pepsi had pumped large amount on the visibility of its
blue, red and white logo. They have been going with aggressive marketing their
advertisement to endorse their brand, the role model for it’s targeted consumer the
16. teenagers. They have increase the fizz in the market price by Introducing the dispensers
called fountain Pepsi and been enjoying a lead over its rival three.
Coca-Cola on the other hand, has been working on the saying ‘skew’ and stead with
‘race’, side by side retailing to the every move of its competitor. They have produced the
shield of Thumps Up with a handsome market share in India soft drink market.
Countering Pepsi, international commercial that used two chimpanzees to coke a snack at
coke, Thums Up came with the aid line, “Don’t be Bandar, taste the thunder” also
Thumps Up has been positioned now very near to that of young in age of Pepsi and
giving it tough time. Everything has been put on fire by these cool merchants if coke got
the status of the “Official drink of Wills World Cup”, Pepsi blushed as “Nothing official
about it”. As Thumps Up projected as “Saare Jahan Se Achcha”. Pepsi was passionate
enough with “Freedom to be”. When Thumps Up came up with “Thunder Blast”, the
other one offered, Pepsi Stuff Card”. If red color is meant for Coke, Pepsi has chosen to
be Blue. In this way, Indian consumer is getting more fizz and punch from the two big
brothers and he has to given not about the winner.
17. CHAPTER - III
COMPANY PROFILE
PEPSICO INTERNATIONAL
PepsiCo is one of the largest FMCG companies there is that is engaged in the food,
beverage, and snack industries. PepsiCo is engaged in the snack food, soft drink, juice,
and fast food franchise businesses. The Company, through its subsidiaries, markets, sells
and distributes various snacks in the United States and internationally, manufactures
concentrates of Pepsi, Mountain Dew and other brands for sale to franchised bottlers in
the US and international markets and produces, markets, sells and distributes juices under
several Tropicana trademarks in the United States and internationally. PepsiCo’s
18. domestic snack food business is conducted by the Frito-Lay North America, and its
international snack food business is conducted through Frito-Lay International. The
Company's soft drink business operates as the Pepsi-Cola Company and is comprised of
two business units one is Pepsi-Cola North America and Pepsi-Cola International. In
December 2000, the Company announced an agreement under which a subsidiary of the
PepsiCo will merge with Quaker Oats Company, and Quaker will become a wholly
owned subsidiary of the PepsiCo. Quaker is a large worldwide marketer of foods and
beverages. The proposed merger is subject to the certain closing conditions, including
approval by shareholders of both companies and regulatory approvals. The transaction is
expected to close in the first half of 2000. PepsiCo is also operating several food
franchises including Pizza Hut, KFC, and Taco Bell etc.
PepsiCo- The Parent Company:
PepsiCo is one of the world's largest food and beverage companies. The company's principal
businesses include
1. Frito-Lay snacks
2. Pepsi-Cola beverages
3. Gatorade sports drinks
4. Tropicana juices
5. Quaker Food
Mission and Vision
Mission:
Our mission is to be the world's premier consumer Products Company focused on
convenient foods and beverages. We seek to produce financial rewards to investors as we
provide opportunities for growth and enrichment to our employees, our business partners
19. and the communities in which we operate. And in everything we do, we strive for
honesty, fairness and integrity.
Vision:
"PepsiCo's responsibility is to continually improve all aspects of the world in which we
operate – environment, social, economic – creating a better tomorrow than today."
Our vision is put into action through programs and a focus on environmental stewardship,
activities to benefit society, and a commitment to build shareholder value by making
PepsiCo a truly sustainable company.
Performance with Purpose:
At PepsiCo, we are committed to achieving business and financial success while leaving
a positive imprint on the society – delivering what we call Performance with Purpose.
Our approach to superior financial performance is the straightforward – drive shareholder
value. By addressing social and the environmental issues, we also deliver on our purpose
agenda, which consists of the human, environmental, and talent sustainability.
PepsiCo Values & Philosophy:
Our Values & Philosophy are a reflection of the socially and environmentally responsible
company we aspire to be. They are the foundation for the every business decision we
make.
Commitment:
We are committed to delivering the sustained growth through empowered people
acting responsibly and building trust.
• Sustained Growth is fundamental to motivating and measuring our success. Our
quest for sustained growth stimulates innovation, places a value on results, and
helps us understand whether today's actions will be contribute to our future. It is
20. about the growth of people and company performance. It prioritizes both making
a difference and getting the things done.
• Empowered People means we have the freedom to act and think in ways that we
feel will get the job done, while adhering to processes that ensure proper
governance and being mindful of company needs beyond our owns.
• Responsibility and Trust forms the foundation for the healthy growth. We hold
ourselves both personally and corporately accountable for everything we do. We
must earn the confidence others place in us as individuals and as a company. By
acting as good stewards of the resources entrusted to us, we strengthen that trust
by walking the talk and following through on our commitment to succeeding
together.
The PepsiCo Family:
Meet the three major divisions of the PepsiCo family:
• PepsiCo Americas Beverages.
• PepsiCo Americas Foods.
• PepsiCo International
Guiding Principles:
We must always strive to:
• Care for our customers, our consumers and the world we live in. we are driven
by the intense, competitive spirit of the marketplace, but we direct this spirit
toward the solutions that benefit both our company and our constituents. Our
21. success depends on the thorough understanding of our customers, consumers
and communities. To foster this spirit of generosity, we go the extra mile to
show we care.
• Sell only products we can be proud of. The true test of our standards is our
own ability to consume and the personally endorse the products we sell. Our
confidence helps ensure the quality of the products, from the moment we
purchase ingredients to the moment it reaches the consumer's hand.
• Speak with truth and candor. We tell the whole story, not just what's
convenient to our individual goals. In addition to being the clear, honest and
accurate, we are responsible for ensuring our communications are understood.
• Balance short term and long term. In every decision, we weigh both short-
term and long-term risks and benefits. Maintaining this balance helps sustain
our growth and ensures our ideas and the solutions are relevant both now and
in the future.
• Win with diversity and inclusion. We embrace people with diverse
backgrounds, traits and the ways of thinking. Our diversity brings new
perspectives into the workplace and encourages innovation, as well as the
ability to identify the new market opportunities.
• Respect others and succeed together. Our mutual success depends on the
mutual respect, inside and outside the company. It requires people who are
capable of working together as part of a team or informal collaboration. While
our company is built on individual excellence, we also recognize the
importance and value of teamwork in turning our goals and accomplishments
PEPSICO INDIA
Introduction:
22. PepsiCo entered India in 1989 and in the short span of a little more than a decade it
became the country's largest selling soft drinks company. The Company has invested
heavily in India making it one of the largest multinational investors. The group has built
an expansive beverage, snack food and exports business and to support the operations are
the groups of 43 bottling plants in India, of which 15 are company owned and 28 are
franchisee owned.
PepsiCo stays committed to providing its consumers with best quality beverages. Its
diverse portfolio of brands include the flagship cola brand Pepsi, Diet Pepsi, 7Up,
Mirinda, Mountain Dew, Slice fruit drink, Tropicana brand 100% fruit juices in the
various flavors, Aquafina packaged drinking water, the Gatorade plus local brands Lehar
Evervess Soda and Dukes Lemonade and Mangola.
PepsiCo is also a dominant player in snack food segment in India. PepsiCo's snack food
company Frito-Lay is the leader in the branded potato chip market. It manufactures Lay's
Potato Chips; Cheetos extruded snacks, Uncle Chips, Kurkure and Lehar brands, and
Quaker Oats.
PepsiCo is one of the largest MNC exporters in the India and its export business consists
of three categories: agribusiness, commodities and Pepsi system sales. PepsiCo has made
the significant investments with the Punjab Agriculture University to develop the
comprehensive agro-technology program that has helped thousands of the farmers across
India improve the yield of their farms and the quality of their agricultural products.
PepsiCo has leveraged its knowledge in the contract farming to develop seaweed
cultivation in the Tamil Nadu and has partnered with the Government of Punjab to help
farmers of the state through the utilization of developed technology for the citrus farming.
As part of its sustainable development initiatives, PepsiCo India has been a committed
leader in the promotion of rainwater harvesting, water conservation recycling and
reduction of effluent discharge. PepsiCo has also established the zero waste centers and
PET recycling supply chains and assisted victims of natural disasters.
23. PepsiCo stays dedicated in its endeavor to develop the community outreach programs by
supporting rural water supply schemes, administering medical camps in villages,
providing computers to rural schools and creating opportunities for women in rural areas
through vocational training as an alternate means of the livelihood.
OVERVIEW OF PEPSICO INDIA
PepsiCo in India:
24. PepsiCo has established its business operations in India in 1989 and has grown to become
the one of the country’s leading food and the beverage companies. One of the largest
multinational investors in the country, PepsiCo has established a business, which aims to
serve the long term dynamic, needs of Indian consumers.
Initially PepsiCo has joint venture with the Punjab government-owned Punjab. Agro
Industrial Organization and the Voltas India Limited. This joint venture marketed and
sold Lehar Pepsi until 1991, when the use of foreign brands was allowed, PepsiCo bought
out its partners and ended the joint venture in 1994. Others claim that firstly Pepsi was
banned from the import in India, in 1970, for having refused to release the list of its
ingredients and in 1993, the ban was lifted, with Pepsi arriving on the market shortly
afterwards.
These controversies are a reminder of "India's sometimes acrimonious relationship with
the huge multinational companies." Indeed, some argue that PepsiCo and Coca Cola
Company have "been major targets in part because they are well-known foreign
companies that draw plenty of the attention."
In 2003, the Central for Science and Environment, a non governmental organization New
Delhi, said that aerated waters produced by soft drinks manufacturers in India, including
multinational giants PepsiCo and tested products included Coke, Mirinda, 7Up, Thums
Up, Fanta, and Sprite. CSE found that the Indian produced Pepsi's soft drink products had
36 times the level of pesticide residues permitted under the European Union regulations,
Coca Cola's 30 times. CSE said that it had tested the same products in the US and found
no such residues. However, this was the European standard for water, not for the other
drinks. No law bans the presence of pesticides in drinks in India.
The Coca-Cola Company and PepsiCo angrily denied allegations that their products are
manufactured in India contained toxin levels far above the norms permitted in developed
world. But an Indian parliamentary committee, in 2004, backed up CSE's findings and by
a government-appointed committee, is now trying to develop the world's first pesticides
25. standards for Soft Drink Company. Coke and Pepsi opposed the move, arguing that lab
tests are not reliable enough to detect minute traces of pesticides in complex drinks.
As of 2005, The Coca-Cola Company and the PepsiCo together hold 97% market share
of soft drink sales in the India. PepsiCo has also been accused by the Puthussery
panchayat in the Palakkad district in the Kerala, India, of practicing "water piracy" due to
its role in the exploitation of groundwater resources resulting in the scarcity of drinking
water for the panchayat residents, who have been pressuring the government to close
down the PepsiCo unit in the villages.
In the year 2006, the CSE again found that soda drinks, including both the Pepsi and the
Coca-Cola, had high levels of pesticides in their drinks. Both the PepsiCo and The Coca-
Cola Company maintain that their drinks are safe for the consumption and have published
in newspaper advertisement that say that pesticide levels in their products are less than
those in other foods such as tea, fruit and dairy products.
In the Indian state of Kerala sales and production of Pepsi-Cola, along with other soft
drinks, was banned by the state government in 2007, but this was reversed by the Kerala
High Court merely a month later. Five other Indian states have announced a partial bans
on the drinks in the schools, colleges and the hospitals.
PepsiCo India and its partners have invested more than USD1 billion since the company
was established in the country. PepsiCo India provides the direct and indirect
employment to 150,000 people including suppliers and the distributors.
PepsiCo nourishes consumers with a range of the products from treats to healthy eats,
which deliver joy as well as nutrition and, good taste. PepsiCo India’s expansive portfolio
includes the iconic refreshment beverages Pepsi, 7UP, Mirinda and Mountain Dew, in
addition to low calorie options such as the Diet Pepsi, hydrating and nutritional beverages
such as the Aquafina drinking water, isotonic sports drinks Gatorade, Tropicana 100%
fruit juices, and juice based drinks, Tropicana Nectars, and Slice. Local brands Lehar
Evervess Soda, Dukes Lemonade and Mangola add to the diverse range of the brands.
26. PepsiCo’s foods company is the leader in the branded salty snack market and all the Frito
laid products are free of trans-fat and the MSG. It manufactures Lay’s Potato Chips
Uncle Chipps and the traditional snacks under the Kurkure and Lehar brands. The
company’s high fiber breakfast Quaker Oats, and low fat and roasted snack options
enhance the healthful choices available to the consumers. Frito Lay’s core products,
Kurkure, Uncle Chips and Cheetos are cooked in Rice Bran Oil to significantly reduce
saturated fats and all of its products contain voluntary nutrition labeling on their packets.
The group has built an expansive beverage and foods business. To support its operations,
PepsiCo has total of 42 bottling plants in India, of which 13 are the company owned and
29 are the franchisee owned. In addition to, PepsiCo Frito Lay foods division has three
state-of-the-art plants. PepsiCo’s business is based on its sustainability vision making
tomorrow better than the today. PepsiCo’s commitment to the living by this vision every
day is visible in its contribution to the country, consumers and the farmers.
MARKET PROFILE
(PEPSICO)
Brands of PepsiCo cool drinks:
27. i) Pepsi
ii) Mirinda
iii) 7up
iv) Slice
v) Mountain-dew
vi) Mountain-dew Tetra
vii) Nimbooz
Flavours of the brands:
i) Lemon
ii) Soda
iii) Orange
v) Mango
vi) Clear Lemon
vii) Cola
28. CHAPTER – IV
LITERATURE REVIEW
According to Wheeler, “Advertising is any form of paid non-personal presentation of
ideas, goods or services for the purpose of inducing people to buy”.
According to William J. Stanton, “Advertising consists of all the activities involved in
presenting to a group a non-personal, oral or visual openly sponsored message regarding
29. a product service or idea. This message is called on advertisement is disseminated
through one or more media and is paid for by an identified sponsor”
Basic Features of Advertising:
On the basis of various definitions it has certain basic features such as:
1. It is a mass non-personal communication.
2. It is a matter of record.
3. It persuades buyers to purchase the goods advertised.
4. It is a mass rapid communication.
5. The communication media is diverse such as print (newspapers and
magazines)
6. It is also called printed salesmanship because information is spread by
means of the written and printed work and pictures so that people may be
induced to act upon it.
Functions of Advertising:
For many firms advertising is the dominant element of the promotional
mix – particulars for those manufacturers who produce convenience goods such as
30. detergent, non – prescription drugs, cosmetics, soft drinks and grocery products.
Advertising is also used extensively by masters of automobiles, home appliances, etc, to
introduce new product and new product features its uses its attributes, pt availability etc.
Advertising can also help to convince potential buyers that a firm’s product or
service is superior to competitor’s product in make in quality, in price etc. it can create
brand image and reduce the likelihood of brand switching even when competitors lower
their prices or offer some attractive incentives.
Advertising is particularly effective in certain other spheres too such as:
i)When consumer awareness of products or service is at a minimum.
ii) When sales are increasing for all terms in an industry.
iii) When a product is new and incorporates technological advance not strong and.
iv) When primary buying motive exists.
It performance the following functions:
i)Promotion of sales
ii) Introduction of new product awareness.
iii) Mass production facilitation
iv) Carry out research
v) Education of people
31. TYPES OF ADVERTISING:
Broadly speaking, advertising may be classified into two categories viz., product
and institutional advertising.
a) Product Advertising:
The main purpose of such advertising is to inform and stimulate the market about
the advertiser’s products or services and to sell these. This type of advertising usually
promotes specific, trended products in such a manner as to make the brands seem more
desirable. It is used by business government organization and private non-business
organizations to promote the uses features, images and benefits of their services and
products. Product advertising is subdivided into direct action and indirect action
advertising, Direct action product advertising wages the buyer to take action at once, ice
he seeks a quick response to the advertisement which may be to order the product by
mail, or mailing a coupon, or he may promptly purchase in a retail store in response to
prince reduction during clearance sale.
Product advertising is subdivided into direct & indirect action advertising &
product advertising aims at informing persons about what a products is what it does, how
it is used and where it can be purchased. On the other hand selective advertising is made
to meet the selective demand for a particular brand or type is product.
b) Institutional Advertising:
It is designed to create a proper attitude towards the sellers to build company image
or goodwill rather than to sell specific product or service. Its purpose is to create a frame
of mind and to implant feeling favorable to the advertisers company. Its assignment is to
make friends for the institution or organization.
It is sub-divided into three categories: patronage, public, relations and public
service institutional advertising.
32. i) In patronage institutional advertising the manufacturer tells his prospects and
customer about himself his policies and lives personnel. The appeals to the
patronage motivation of buyers. If successful, he convinces buyers that his
operation entitles him to the money spent by them.
ii) Public relations institutional advertising is used to create a favourable image of
the firm among employees, stockholders or the general public.
iii) Public service institutional advertising jobs public support
33. WHY & WHEN TO ADVERTISE:
Advertising as a tool to marketing not only reaches those who buy, but also those
whose opinions or authority is counted for example a manufacturer of marble tiles and
building boards advertises not only to people who intend to build houses but also to
architect and engineers. While the manufacturers of pharmaceuticals products advertise
to doctors as well as to the general public. At time it is necessary for a manufacturer or a
concern to advertise things which it does not sell but which when sold stimulates the
sales of its own product. There are concerns like electric heaters, iron etc. because the use
of these increases the demand for their products.
Advertising should be used only when it promises to bring good result more
economically and efficiently as compared to other means of selling. There are goods for
which much time and efforts are required in creating a demand by sending salesman to
prospective buyers than by simply advertising them. In the early days of the cash register
in India it was sold by specially trained salesman who called on the prospective users and
had the difficult task of convincing them that they could no longer carry on with the old
methods, and that they urgently needed a cash register. In our country certain publishers
have found it less costly to sell their books by sending salesman from house to house
among prospective buyers than to advertise them. In these two examples the cost of
creating demand would be too high if attempted by advertising alone under such
circumstances advertising is used to make the salesman acceptable to the people they call
upon to increase the confidence of the public in the house. Naturals when there are good
profits competitors will be attracted and they should be kicked out as and when sufficient
capital is available by advertising on a large scale. Immediate result may not justify the
increased expenditure but it will no doubt secure future sales.
34. Sales-Effect:
Communication-effect advertising research helps advertisers assess advertising’s
communication effects but reveals little about its sales impact. What sales a regenerated
by an advertisement that increases brand awareness by 20% and brand preference by
10%? Advertising’s sales effect is generally harder to measure than its communication
effect. Sales are influenced by many factors besides advertising, such as the product’s
features, price, availability and competitors' actions. The fewer or more controllable these
other factors are, the easier it is to measure advertising's effect on sales. The sales impact
is easiest to measure in direct-marketing's effect on sales. The sales impact is easiest it is
to measure in direct-marketing situations and hardest measure in brand or corporate-
image-building advertising.
PROGRESS TESTS
These assess the various stages of buyer awareness, preference, buying intention and the
actual purchase in relation to advertising Effort. They are called sales effect tests.
Measuring Sales Response to Advertising:
Though increase in sales in the true measure of advertising effectiveness, in reality it’s
difficult to measure the increase that is due to a particular advertisement. It is
rather difficult to correlate the response in sales with the advertising programme.
However, a few methods have been discarded in the following paragraphs which are
generally used to measure the sales response to advertising.
Sales Results Tests:
The additional sales generated by the advertisements are recorded, taking several routes.
Past Sales before the advertisement and sales after the advertisement are noted. The
difference is attributed toad impact. Controlled Experiment: In experimental market, any
one element of marketing mix is changed.
35. It is compared with the sales of another similar market. The element's presence
observance is a reason for difference in sales. Instead of two markets, the experiment can
be carried on the two groups of consumers. The inventory audit is dealers’ inventory
before and after the ad is run.
Attitude Tests:
This is an indirect measurement of the post-testing effects of advertisements on attitudes
towards the advertised product or brands. The change in attitude as a result of advertising
is assessed. The assumption is that favourable attitude towards the product may lead
to purchases. Most advertisements are designed to either reinforce or change existing
attitudes. An attitude is a favourable or unfavourable feeling about a product.
Selecting the Media:
36. Media selection is an important since it costs time space and money various factors
influence this selection, the most fundamental being the nature of the target market
segment, the type of the product and the cost involved. The distinctive characteristics of
various media are also important. Therefore management should focus its attention on
media compatibility with advertising objectives.
INDOOR OUTDOOR DIRECT DISPLAY
1.Press
(a) Newspapers
(b) Magazines
1. Radio
2. T.V.
3. Cinema
4. Video
1. Poster
2. Painted displays
3.Traveling
Displays
4. Neon signs
5. Electric signs
1. Envelop &
Postcards
2. Booklet
3. Catalogs
4.Sales letters
5. Samples
1. Displays
(a) Window
(b) Counter
2. Showroom
3. Exhibitions
4. Trade fairs
Modern Advertising Techniques:
Include seven that you should consider:
37. 1. Email Advertising
2. Video Advertising
3. Audio Advertising
4. Search Advertising
5. Onsite Advertising
6. Mobile Phone Advertising
I recently completed a series of posts on these modern advertising techniques. The posts
provide additional information on each technique so I’ve linked to them when relevant.
1. E-mail Advertising:
Email advertising tops this list of modern advertising techniques because it tops the lists
of new and growing advertising expenditures. From small Internet marketers to large
offline and online stores, email advertising is vital to modern advertising and marketing
campaigns.
2. Video Advertising:
Video Advertising can be done on and off line. Many local cable channels offer video ads
and infomercials on a search basis for viewers. So your ad is only seen by people
interested in what you sell. Video marketing is also big on the Internet. Most online
videos are more promotion than advertising, but they play an important role in online
success.
3. Audio Advertising:
38. Audio advertising, whether across the Internet or the airwaves enables you to target a
narrow market and to deliver relevant and timely messages that encourage an immediate
response.
Although second to video online, offline audio advertising (radio advertising) provides all
the benefits of online audio advertising. And if you advertise on highly targeted stations
and shows, it isn’t that expensive.
4. Search Advertising:
Search advertising, like Google’s Ad words, can provide much traffic for an online
business, but it can also cost far more than it returns in sales. To use search advertising
effectively, you need to constantly test your ads. Then rewrite and redesign them from
your test results. There’s both skill and science to search advertising. So before you jump
in, read some e books and study the search engine’s documents about their pay per click
programs.
5. Onsite Advertising:
Onsite advertising can be considerably less expensive than search advertising. Generally
a click from an ad on site costs less than the same click from a search. With Google’s
new Ad Planner, it will be easy to target a market with ads across the Internet. You can
even pick the sites that you want to carry your ads and deny ones that you don’t.
6. Mobile Phone Advertising:
Mobile phone advertising is projected to grow from just under 500 million in 2006 to a
almost 5 billion by 2011.And why not. It’s interactive, unobtrusive, and immediate. Most
people have their mobile phones with them all the time. So they can react instantly to
banner phone ads that catch their attention.
PepsiCo Milestones
39. • 2005, PepsiCo, Launches Pepsi Limon in Peru.
• 2005, PepsiCo India relaunches Mirinda cold drink.
• 2006, Tropicana debuts Tropicana Pure a new line of 100% premium juices.
• 2006, Ms. Indra Nooyi named Chief Executive Officer of PepsiCo as of
October 1, 2006.
• 2006, Pepsi signs five-year sponsorship renewal with Major League Baseball
Properties making Pepsi the "Official Soft Drink of Major League Baseball".
• 2007, Aquafina launches Aquafina Alive - a low calorie, vitamin-enhanced water
beverage
• 2007, Tropicana launches The Tropicana Fruit Squeeze, a 20-calorie drink with
real Tropicana fruit juice.
• 2007, Mountain Dew Unveils unique, limited edition aluminum bottles.
• 2007, PepsiCo named a 2007 Working Mother 'Best Company for Multicultural
Women'
• 2007, Pepsi wins Webby Award for its execution of the "Best Sports Website".
• 2008, Frito-Lay Turkey builds the world's first organic waste treatment facility.
• 2009, PepsiCo is named to the 'Best Companies for Multicultural Women' list by
Working Mother magazine.
• 2009, Pepsi wins 'Football Promoter of the Year' award in Nigeria for its
involvement with the development of the grassroots football.
• 2009, PepsiCo International introduces world's first non-alcoholic, flavored malt
drink, Bario, into Saudi market.
40. • 2009, Pepsi introduces the first climate-friendly vending machines to the U.S.
• 2009, Aquafina launches the Eco-Fina Bottle, the lightest weight bottle in the
market.
• 2010, PepsiCo establishes new global group to drive nutrition innovation.
• 2010, PepsiCo announces plans to invest $250 million in Vietnam over next three
years and establishes new beverage facility in Northern Vietnam.
• 2010, Pepsi ‘We Inspire’ campaign recognized with NAACP Award.
• 2010, PepsiCo confirms completion of mergers with its two largest bottlers.
• 2010, PepsiCo sets new Beverage Industry standard in China with new Nanchang
Plant.
• 2010, AMP Energy Juice launches across the United States.
• 2011, PepsiCo named top food and beverage company in 2011 Dow Jones
Sustainability Index.
• 2011, PepsiCo pilots reduced-calorie cola innovation Pepsi NEXT with 60% less
sugar.
• 2011, PepsiCo recognized by Black Enterprise magazine as a Best Company for
Diversity.
• 2011, PepsiCo rolls out eco-friendly recyclable and compostable cups.
• 2011, NASCAR’s Dale Earnhardt Jr. gets behind Diet Mountain Dew for 2012
season,
• 2011,Frito-Lay fans set Guinness World Record for "Most Fans on Face book In
24 Hours" with more than 1.5 Million new "likes".
42. Table - 1
Respondents’ classification according to age
Age (in years) No. of respondents Percentage
15-20 44 44%
21-40 50 50%
41-60 6 6%
Total 100 100%
Pie – Chart:
Age (in years)
21-40,
50%
41-60,
6%
15-20,
44%
43. Inference:
Above chart reveals that 44% of the respondents are in the age group of 15-20,
50% are in the age group of 21-40 and 6% are in the age group of 41-60.
Table - 2
Respondents’ classification according to sex
Sex No. of respondents Percentage
Male 60 60%
Female 40 40%
Total 100 100%
Pie – Chart:
Respondents' classification according to sex
Male
60%
Female
40%
44. Inference:
Above chart reveals that 60% of the respondents are males and 40% of
them are females.
Table - 3
Respondents’ classification according to educational qualification
Qualification No. of respondents Percentage
Illiterate - -
Below Metric - -
Metric 10 10%
Graduate 52 52%
Postgraduate 38 38%
Total 100 100%
Pie – Chart:
Classification according to educational qualification
Metric
10%Graduate
52%
Post
graduate
38%
45. Inference:
Above chart reveals that 10% are matriculate and 52% are Graduate and rests of
them 38% are post graduate.
Table – 4
Q.No.1) Do you see the advertisements?
Particulars No. of respondents Percentage
Yes 100 100%
No - -
Pie – Chart:
Yes
100%
46. Inference:
Above chart reveals that 100% of the respondents see the advertisements.
Table - 5
Q.No.2) Do you think advertisement of cool drink is required?
Particulars No. of respondents Percentage
Yes 96 96%
No 4 4%
Total 100 100%
Pie – Chart:
Inference:
Yes
96%
No
4%
47. Above chart reveals that among 100 respondents 96% of the respondents’ view
that advertisement of cool drink is required while 4% of the respondents view that
advertisement of cool drink is not required
Table – 6
Q.No.3) Have you seen the advertisements of PepsiCo cool drinks?
Particulars No. of respondents Percentage
Yes 100 100%
No - -
Total 100 100%
Pie – Chart:
Inference:
Above chart reveals that all respondents are see advertisements of PepsiCo cool
drinks.
Yes
100%
48. Table – 7
Q.No.4) through which media you have seen it?
Sources No. of respondents Percentage
T.V. 92 92%
News papers 4 4%
Magazines 2 2%
Others 2 2%
Total 100 100%
Pie – Chart:
Inference:
Above table reveals that 92% of the respondents are of opinion that they have
seen the advertisements on T.V. while 4% are of the opinion that they have seen the
advertisements through newspapers.
T.V.
92%
Others
2%
Magazines
2%
Newspapers
4%
49. Table – 8
Q.No.5) Do you like the advertisements of PepsiCo cool drinks?
Particulars No. of respondents Percentage
Yes 94 94%
No 6 6%
Total 100 100%
Pie – Chart:
Inference:
Above table reveals that among 100 respondents 94% of respondents like the
advertisements of PepsiCo cool drinks while 6% of respondents don’t like the
advertisements of PepsiCo cool drinks.
Table – 9
No
6%
Yes
94%
50. Q.No.6) why do you like the advertisements of PepsiCo cool drinks?
Particulars No. of respondents Percentage
Because they have famous
personalities
14 14%
Because of good music 14 14%
Theme and making is
appealable
60 60%
Any other reason 12 12%
Total 100 100%
Pie – Chart:
Inference:
Above chart reveals that among 100 respondents 60% of the respondents’ like the
advertisements due to theme
Table – 10
Q.No.7) could you recall any advertisement of PepsiCo cool drinks?
Particulars No. of respondents Percentage
Theme and
making is
appealable
60%
Because of
good music
14%
Because
they have
famous
personalities
14%
Any other
reason
12%
51. Yes 88 88%
No 12 12%
Total 100 100%
Pie – Chart:
Inference:
Above chart reveals that Among 100 respondents 94% of respondents recall the
advertisement of PepsiCo cool drinks and 6% of respondents didn’t recall any
advertisement of PepsiCo cool drinks.
No
12%
Yes
88%
52. CHAPTER - VI
FINDINGS
• 96% of the respondents’ view that advertisement of cool drink is required.
• 92% of the respondents are of opinion that they have seen the advertisements on
T.V.
• 60% of the respondents’ like the advertisements due to theme.
53. • 94% of respondents recall the advertisement of PepsiCo cool drinks.
• 60% of respondents are view that advertising is very necessary for sale of cool
drinks.
• 60% of the respondents’ view that T.V. is presenting the advertisement is
necessary for sale of PepsiCo cool drinks.
• 84% of the respondents agreed that advertisement of PepsiCo cool drinks create
awareness about brands and make to consume product.
• 73% of the respondents’ view that advertising gives effect on their consumption
of cool drinks.
• 79% of respondents’ views that famous personalities and slogans are necessary
for advertisement of PepsiCo cool drinks.
• 83% of the respondents said that famous personalities affect their brand choice.
• 82% of the respondents’ view that advertisement reminds them brand name while
purchasing.
• 88% of the respondents said that advertisement of PepsiCo cool drinks helps them
to make better selection.
• 86% of the respondents’ view that they satisfied with the performance of /quality
of product which is seen by advertisement of PepsiCo cool drinks.
• 64% of the respondents said that advertisements of PepsiCo cool drinks should be
in regular time to get effective.
• 83% of the respondents’ view that advertisements of cool drinks make them loyal
towards its brands.
54. • 40% of the respondents said that education is the reason for difference of
advertising effectiveness.
SUGGESTIONS
• Media should be selected according to the choice of customers.
• To give more attention in making the advertisement to make it effective for the
sale of cool drink.
• It should be attractive one so that people are attracted toward the advertisement.
• The indoor media only reach to more no. of customers so, that the advertisement
of PepsiCo also can advertise in local channels and local newspapers.
• The advertisement should be in regular time.
• Can advertise is more outdoor media because it cost is very less compare to other
media and also it can reach some time more customers mind.
• Advertisement in newspapers media now not in front page, if that advertisement
in FrontPage means it can reach more customers.
• PepsiCo should conduct periodical study to know the level of customer
satisfaction.
• Like postal advertisement is very cheap and also it can reach our customer regular
time period means we can retain our customer and we can maintain good
relationship with customers.
55. BIBLIOGRAPHY
Textbooks:
• Zikmund, William G. “Business Research Methods” Thomson south – western 7th
edition.
• Philip kotler, “Marketing Management” prentice hall of India, 13th
edition.
• Chunawalla, S.A., “Foundation of advertising theory & Practice”. Himalaya
Publishing House, 5th
edition.
Newspapers:
• Hindustan Times.
• Times of India.
Magazines:
• The Times.
• 4P’s.
Internet Sources:
• www.wikipedia.org.
• www.pepsicoindia.co.in.
