Friday 18 April 2014

MBA PROJECT FREE:STUDY OF INDIAN AERATED DRINK INDUSTRY WITH REFERENCE TO COKE INDIA VS PEPSICO INDIA

EXECUTIVE SUMMARY

Coca-Cola and PepsiCo are the two major companies in the world for cola drinks and have a huge world market share. These two companies have captured the market of each and every country they get into and same I the case in India where Coke has a market share of 57.8% while pepsi has a market share of 35.6% and are continuously fighting for a larger market share and continuously attacking each other either by Advertisements, brand ambassadors, products and marketing of their brand.

All this is fine but the main core competency of such products is in the Distribution Process and in the satisfaction of their Retailers thus a strong distribution process and a strong satisfaction level means more number of retailers and more the retailers means more the availability of the product and more the availability of the product means more the market share and thus the curiosity to know who is the better distributor and has a strong distribution led us to the project “A study of Indian Aerated Drink industry with special focus on retailers’ satisfaction level with respect to Coke India vs. PepsiCo India”
We conducted a survey of mainly panwala’s as and other Pepsi and Coke Stockers but the major stockers are the panwala’s of mainly 100 respondents. It was a simple questionnaire and we asked questions on quality of bottles, margins and other attributes.

We got the number of sellers by convenient sampling and analysis and secondary data analysis and the results are given in the project.


INTRODUCTION

There is a huge fight between the two soft drinks giant Coca-Cola (Coke) and PepsiCo (Pepsi) to grab a large part of the Indian markets. The main reason, well the growing Indian middle class and the huge disposable income they have and also the increasing consumption of soft drinks by Indians.

Pepsi and Coke both have brands attacking each other if Coke introduces one brand then Pepsi will bring another brand to fight it and vice a versa. Though Coke is this huge giant and Pepsi might be just a fly in front of it but the fly troubles and is much capable of fighting back and also winning.

The main area where they can capture each others market is in the network of distribution channels they use with restaurant chains, pan walas, hotels and eateries to compete with each other. It is to these sellers where these two giants are vying for in order to capture a larger market share and trounce the other and that is why the project on the satisfaction of these members to see who is winning the competition.

According to industry experts, the market for carbonated drinks in India is worth US$ 1.5 billion while the juice and juice-based drinks market accounts for US$ 0.25 billion. Growing at a rate of 25 per cent, the fruit-drinks category is one of the fastest growing in the beverages market. Sports and energy drinks, which currently have a low penetration in the Indian market, have sufficient potential to grow.

The market for alcoholic beverages has been growing consistently. 'The Future of Wine', a report on the state of the wine industry over 50 years, suggests that the market for wine in India was growing at over 25 per cent per year.

Major investments


Private investment has been one of the key drivers for growth of the Indian food industry. The 'India Food Report 2008', reveals that the total amount of investments in the food processing sector in the pipeline for the next three years is about US$ 23 billion.
The government has received around 40 expressions of interest (EoI) for the setting up of 10 MFPs with an investment of US$ 514.37 million.
Reliance Industries Ltd has invested US$ 1.25 billion in a dairy project.
Focusing on India as a rapidly growing market, US soft drinks giant PepsiCo would pump in an estimated US$ 152.30 million to set up four new food and beverages projects by 2012.
Geneva-based food service chain Global Franchise Architects (GFA) aims to open 250 stores around the world by March 2010, of which 100 will be in India.

Today India is one of the most potential markets with the population of around 1000 million people. There is a growth of 30% in the soft drink industry. These factors are the reason for the entry of two giants in the soft drink industry in the world to enter in the Indian market. The cola giant’s coke and Pepsi, together control almost 96% of entire Indian market while other companies has only share 4%.

In a long span, a culture transforms itself over and over. The map is remade attitude change for better or worse. Processes are invented, hailed as revolutionary and discarded obsolete. So it was one hundred year was a very much different world from what we have today, but at least one sense, not very different at call. Many reasons have been advanced to explain the last century. With over 100 yrs. Of interrupted growth despite war, economic depression and other disturbances there be something that sets soft drink apart from the consumer culture.

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