PROJECT REPORT

ON
RELATIVE ANALYSIS TOWORDS
DEGREE OF CUSTOMER
SATISFACTION

Why Costumer Demand PEPSI Then Coca Cola

SURVEY AREA-LAHORE

Muhammad Irfan Saleem

R. NO. 29S-645
MASTER OF BUSINESS ADMINISTRATION (MARKETING)

1
29-C/1, Gulberg III, LAHORE
Tel: (042) 5755111 & 5764111,
Fax: 5712284Sciences LHR.
INDEX

CONTENT PAGE NO
ACKONOWLEDGEMENT 4

DECLERATION 5

CORPORATE PROFILE 1-10

MISSION & VISION

PERFORMANCE WITH PURPOSE

QUALITY POLICY

ORGANIZATIONAL VALUES

COMMITMENTS

BOARD OF DIRECTORS

PEPSI in Pakistan 10

AROUND THE WORLD 11-11

HISTORY OF PEPSICO 12-24

PEPSICO IN INDIA 25-27

PARTNER

PEPSICO’S BUSINESS OPERATION DIVISION 28-31

BEVERAGES

SNACKE FOODS

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 RESTAURENTS

FINANCIAL INFORMATION 32-35

PRODUCTS & BRANDS 36-42

ABOUT THE SOFT DRINKS 43-45

THAT’S IN SOFT DRINK

MANUFACTURING PROCESS 46-47

SLOGANS 48-51

ADVERTISEMENT 52-53

RELATIVE ANALYSIS TOWARDS

DIGREE OF CUSTOMER SATISFACTION 54-63

MARKETING MANAGEMENT

PEPSICO’S MARKETING STRATEGY

BUILDING CUSTOMER VALUE, SATISFACTION & LOYALTY

CUSTOMER VALUE & SATISFACTION

TOTEL CUSTOMER SATISFACTION MASUREMENT TECHNIQUES

INFLUENCE OF CUSTOMER SATISFACTION

TIPS FOR RECOVER CUSTOMER GOODWILL

CUSTOMER RELATIONSHIP MANAGEMENT (CRM)

ASQ SURVEY

CUSTOMER SATISFACTION SURVEY AND ANALYSIS 64-69

SURVEY AREA LAHORE CITY & FRING

AVAILABLE PRODUCT IN LAHORE

PRODUCT PRICE

SCHEEM

COMAPRISION BETWEEN PEPSI & COKE PRODUCTS 70-70

AREA FOR DISTRIBUTION OF PEPSI PRODUCT 71-71

SURVEY

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 FINDING RESULTS
76-78

QUANTITYWISE MARKET SHARES

PEPSI VS COKA-COLA 78-78

SWOT ANALYSIS 78-80

RECOMMENDATIONS 80-81

BIBLIOGRAPHY 94

ACKNOWLEDGEMENT

All praises for Almighty Allah who is “THE CREATOR” of whole of the universe
and admires to our Holy Prophet Muhammad (Salalaho alehe wa alehi wasalam)
who taught us everything of this life and the life thereafter.

Now it is our responsibility to convey the “WORDING OF SUCCESS” to whole of

the Ummah. As it was indicated in the last Address of our Holy Prophet (Peace be
Upon Him). And the graves of “FELLOW BEINGS” are the proof of the completion
of this responsibility.

It was a great learning experience and I would like to appreciate PepsiCo Team of
LAHORE for their excellent work environment facilities.

I would like to thank our teacher SYED TANVEER HUSSAIN KAZMI (Head of
Academics) and all my faculty members for their kind support during tenure of
my project.

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 DEDICATION

Dedicated to my Parents who have always been the source of

inspiration for me and gave me the courage to do this impossible and

difficult task. They are also trying to do everything for us until success

kisses our feet. I love them because they are the one who care for me a

lot. We are highly thankful to our teacher rSYED TANVEER HUSSAIN KAZMI

(Head of Academics) for having the confidence in us to accomplish this task.

Muhammad Irfan Saleem

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6
 ABSTRACT

Pepsi-Cola is a carbonated beverage that is produced and manufactured by PepsiCo.

It is sold in stores, restaurants and from vending machines. The drink was first made in the
1890s by pharmacist Caleb Bradham in New Bern, North Carolina. The brand was
trademarked on June 16, 1903. There have been many Pepsi variants produced over the
years since 1903, including Diet Pepsi, Crystal Pepsi, Pepsi Twist, Pepsi Max, Pepsi Samba,
Pepsi Blue, Pepsi Gold, Pepsi Holiday Spice, Pepsi Jazz, Pepsi X (available in Finland and
Brazil), Pepsi Next (available in Japan and South Korea), Pepsi Raw, Pepsi Retro in Mexico,
Pepsi One, and Pepsi Ice Cucumber in Japan.
Pepsi cola is situated is an Industry that is dominator by two Competitors Coca Cola
and of course themselves. Although Pepsi and Coke basically go after all consumers who
purchase soft drink beverage Coca Cola targets it product at the head of household.
According to the beverage digest the customer base for soft drinks is whopping 95% of
regular user in United States. This represents the large number if potential customers for
Pepsi Cola.
The Pepsi's advertising the campaigns are referring to the markets that marketers refer
to as Generation X. The Generation X consumer is profiled to be between the age of 18 to
29. They have high expectations in life and very active. They adopt a lifestyle of living for
today and not worry about long term goal. They also have a focus on the 12 to 18 year old
market.

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 “I want people to look at PepsiCo and
think of it as a model of how to conduct
business… be call it….
“PERFOREMANCE WITH PURPOSE”

INDRA NOOY
CHAIRMAN&C.E.O.
PEPSICO

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Indra Krishnamurthy Nooyi;
Born October 28,1955 in Chennai,
(Tamil Nadu India) is the Chairman and Chief Executive Officer (CEO) of PepsiCo, one of the
world's leading food and beverage companies. On August 14, 2006, Nooyi was named the
successor to Steven Reinemund as chief executive officer of the company effective October 1,
2006. On February 5, 2007, she was named Chairman, effective May 2, 2007. Forbes magazine
ranked Nooyi third on the 2008 list of The World's 100 Most Powerful Women. Fortune magazine
has named Nooyi number one on its annual ranking of Most Powerful Women in business for
2006, 2007 and 2008. In 2008, Nooyi was named one of America's Best Leaders by U.S. News &
World Report.

Early life and career

Indra Nooyi was born into a Tamil family. She completed her schooling from Banasthali High
School, Kathmandu. She received a Bachelor's degree in Chemistry from Madras Christian
College in 1974, and earned an MBA at the Indian Institute of Management in Calcutta. Beginning
her career in India, Nooyi held product manager positions at Johnson & Johnson and textile firm
Mettur Beardsell. She was admitted to Yale School of Management in 1978 and earned a master's
degree in Public and Private Management. Graduating in 1980, Nooyi started at The Boston
Consulting Group (BCG), and then held strategy positions at Motorola and Asea Brown Boveri.
In addition to being a member of the PepsiCo board of directors, Nooyi serves as a member of the
boards of the International Rescue Committee, Catalyst and the Lincoln Center for the Performing
Arts. She is a Successor Fellow of the Corporation and member of the Board of Trustees of
Eisenhower Fellowships, and currently serves as Chairman of the U.S.-India Business Council.
In 2007, she was chosen as a recipient of the Padma Bhushan award by the Government of
India. In 2008, she was elected to the Fellowship of the American Academy of Arts and
Sciences

PepsiCo Executive
Nooyi joined PepsiCo in 1994 and was named president and CFO in 2001. Nooyi has directed the
company's global strategy for more than decade and led PepsiCo's restructuring, including the
1997 divestiture of its restaurants into Tricon, now known as Yum! Brands .Nooyi also took the
lead in the acquisition of Tropicana in 1998, and merger with Quaker Oats Company, which also
brought Gatorade to PepsiCo. In 2007 she became the fifth CEO in PepsiCo's 44-year history.

Business officials rave at her ability to drive deep and hard while maintaining a sense of heart and
fun. According to Business Week, since she started as CFO in 2000, the company's annual
revenues have risen 72%, while net profit more than doubled, to $5.6 billion in 2006.

Nooyi was named on Wall Street Journal's list of 50 women to watch in 2007 and 2008, and was
listed among Time's 100 Most Influential People in The World in 2007 and 2008. Forbes named
her the #3 most powerful woman in 2008.

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Mission and Vision
At PepsiCo, we believe being a responsible corporate citizen is not only the right
thing to do, but the right thing to do for our business.

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 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.

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Performance with Purpose
At PepsiCo, we're committed to achieving business and financial success while leaving a positive
imprint on society - delivering what we call Performance with Purpose.

Our approach to superior financial performance is straightforward - drive shareholder value. By

addressing social and environmental issues, we also deliver on our purpose agenda, which
consists of human, environmental, and talent sustainability.

PepsiCo’s quality policy

“Make sale and deliver the beverage to the consumer as it was designed, in order to deliver
preference”. PepsiCo believes their success depend upon the quality and value of their product by
providing a safe, whole some, economically efficiency and a healthy environment for their
customer. And by providing fair returns to their investors while maintaining the stander of integrity.

Organizational Values

Our Commitment

Our values reflect our aspirations - the kind of company we want PepsiCo to be. We express our
values in the form of a commitment. Our commitment is 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 contribute to our
future. It is about growth of people and company performance. It prioritizes making a difference
and getting things done.

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Empowered People means we have the freedom to act and think in ways that we feel will get the
job done, while being consistent with the processes that ensure proper governance and being
mindful of the rest of the company's needs.

Responsibility and Trust form the foundation for healthy growth. It's about earning the confidence
that other people place in us as individuals and as a company. Our responsibility means we take
personal and corporate ownership for all we do, to be good stewards of the resources entrusted to
us. We build trust between ourselves and others by walking the talk and being committed to
succeeding together.

BOARD OF DIRECTORS
 Shona L.brown,

Senior vice president, Business Operations of

Googl Inc.
Ian M.cook,

President and C.E.O. Colgate Palmolive.

 Dina Doubloon,

Consultant, former Executive Vice President

and C.F.O, JPMorgan Chase and company.
 Victor J.Dzau,

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 M.D. Chancellor for Health affairs, Duke
University.

Ray L. Hunt,

C.E.O. Hunt Oil company, Chairman & C.E.O.

Hunt Consolidated, Inc.

Alberto Ibarguen,

President & C.E.O. John S.& James L. Knight

foundation.
Arthur C.Martinez,

Former Chair man of bord president & C.E.O.

Sears,Roebuck& C.
Indra K. Nooyi,

Chairman of the board &C.E.O. PepsiCo,

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SharomCercy Rockefeller,

President & C.E.O. Weta Public Station

James J. Schiro,
C.E.O., Zurich Financial Services

Lioyd Trotter,
Partner GenNX360 Capital Partner.

Daniel Vasella,
Chairman of the board & C.E.O. Novartis AG

MichealD.White,
C.E.O. PepsiCo International & Vice Chairman
PepsiCo.
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Pepsi in Pakistan
In Pakistan Pepsi was introduced in 1979, in the beginning Pepsi did face a lot of problem because at that time

Coca Cola had 72% market share.

However in 1980 Pepsi was offered as a franchise agreement with the Coca Cola company, which they did accept

and there after it came to be known as Pepsi Cola.

www.pepsi.com

HAIDIRI BEVERAGES PRIVATE LIMITED

The haidiri beverages company was established in 1979. It is the Pepsi's Sole selling Agent in Rawalpindi

and Islamabad. It is based in the CDA industrial triangle, Kahuta Road Islamabad. It manages the supply

for several wholesalers, Retailers, Restaurants, Hotels and other Food outlets. In order to achieve the

projected Sales target effective. Haidiri Beverage's primary functions are to conduct a systemic

manufacturing and supply of product. It has setup a best manufacturing plant and storage plant in

Rawalpindi with multiple production unit and huge Production Capacity. Haidiri Beverages has different

Departments for dealing such as Marketing Department, Human Resource Management Department,

Production Department, Information

Technology Department, Finance

Department and Supply Chain Process.

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Reference: Malik Mohammad Imtiaz Production Manager

Production Process

Haidiri Beverages produced the large number of product in a day. The production criteria are on demand as

well as the market situation. They produced 35, 000 cane per hour and 20, 000 disposal bottles per hour and

the machinery run 22 hour in a day.

Reference: Malik Mohammad Imtiaz Production Manager

Consumer Behavior

Consumer behavior is a key success of any Company. Consumer behavior is depending upon culture,

value, traditions. When marketers offer unique benefits in a new product they encourage consumer to

subtype. If successful marketer established a dominant position in a new sub category. When Pepsi Co

introduced a new product in a market it will change the consumer behavior. When Pepsi attempted to

introduce another category breakfast cola’s by introduced Pepsi AM, it was less successful.

http://books.google.com.pk/books

Culture

The soft drinks market in Pakistan enjoys dynamic growth in both volume and value terms. Carbonated

drinks have become part of the culture in Pakistan and multinational companies have maintained standards

over the years to provide the nation with high-quality drinks. Rural areas of Pakistan have driven sales of

carbonated drinks to new heights as more than 60 percent of the population resides in rural areas and young

consumers are more attracted to advertising. Pepsi is the most popular and leader brand in the Pakistani

market and is consumed by children and adults alike. Pepsi is a responsible corporate brand of Pakistan and

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 have contributed a lot to the economy .

Branding

There are a number of branding strategies Generic Brand Strategy, Individual Brand Strategy, Family

Brand Strategy, Manufacturing's Brand Strategy, Private Brand Strategy and Hybrid Brand Strategy.

Individual Brand Strategy is Marinda, 7up and Pepsi etc. they may presented as different line but it operate

as under the name of Pepsi.

AROUND THE WORLD

PEPSICO Inc. is currently one of the most successful consumer product company in the world with annual
revenues exceeding $ 39 billion & has more than 1,85,000 employees. PepsiCo Inc. began as a successor to
a company in corporate in 1931, known as loft Inc. Once known Pepsi-cola, the company expended its
business and adopted its current name PepsiCo, after a merger with Frito-lay in 1965. This merger
dramatically increased PepsiCo’s market potential and set the foundation for the company’s tremendous
growth PepsiCo’s product as recognized and is most respected all around the globe. Currently, PepsiCo
divisions operate in three major U.S. & International business; Beverages, Snack foods, & Restaurant,
PepsiCo has attend a leadership position as being the world leader in soft drink bottling the world largest
snack chip producer , and the world largest franchised and company operated restaurant system . The
corporation increasing success has been based on his standards of performance, marketing strategy.
Competitive determinations commitment and the personal and professional integrity of their people,
products, and business practices.

HISTORY OF PEPSICO
Pepsi has one of the most intriguing histories of any product on the market. From its humble
beginnings the people of Pepsi make the story what it is - including its inventor, customers,
competition, corporate managers, salesmen, distributors, cartoon spokes-persons and including
some of the biggest names in entertainment history. There have been good times and bad times-
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plus lots and lots of changes over the years. If you enjoy Pepsi, you'll enjoy the stories of the
people who have made it possible.

Historical Events – 1900

1898
Caleb Bradham, a New Bern, North Carolina pharmacist, renames "Brad's Drink," a carbonated
soft drink he's created to serve his drugstore's fountain customers. The new name, Pepsi-Cola, i
first used on August 28.

1902
Bradham applies to the U.S. Patent Office for a trademark for the Pepsi-Cola name.

1903
In keeping with its origin as a pharmacist's concoction, Bradham's advertising praises his drink
as "Exhilarating, invigorating, aids digestion."

1905
A new logo appears the first change from the original in 1898. Pepsi-Cola's first bottling franchises
are established in Charlotte and Durham, North Carolina.

1906
Pepsi gets another logo change, the third in eight years. The modified script logo is created along
with the slogan, "The Original Pure Food Drink." There are 15 U.S. Pepsi bottling plants. The
Pepsi trademark is registered in Canada. Syrup sales rise to 38,605 gallons.

1907
The Pepsi trademark is registered in Mexico.

1909
Automobile racing pioneer Barney Oldfield becomes Pepsi's first celebrity endorser
when he appears in newspaper ads describingPepsi-Cola as "A bully drink - refreshing,
invigorating, a fine bracer for a race." The theme "Delicious and healthful" appears, and will be
used intermittently over the next two decades.
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Historical Events - 1920

1920
Pepsi appeals to consumers with "Drink Pepsi Cola. It will satisfy you."

The price of sugar on the New York Stock Exchange reaches 26 cents per pound. Bradham
gambles on the price going higher and buys large stocks of sugar. By the end of the year, sugar
demand slows on the open market and the price drops to a catastrophic low of two cents per
pound.

1923
Pepsi-Cola Company is declared bankrupt and its assets are sold to a North Carolina concern,
Craven Holding Corporation, for $30,000. Roy C. Mega gel, a Wall Street broker, buys the Pepsi
trademark, business and goodwill from Craven Holding Corporation for $35,000, forming the
Pepsi-Cola Corporation.

1934
Pepsi begins selling a 12-ounce bottle for five cents, the same price charged by its
competitors for six ounces.

1939
A newspaper cartoon strip, "Pepsi & Pete," introduces the theme "Twice as much for a nickel" to
increase consumer awareness of Pepsi's value advantage.

Historical Events - 1940

1940
Pepsi makes advertising history with the first advertising jingle ever broadcast nationwide. "Pepsi-
Cola hits the spot/Twelve full ounces that's a lot/Twice as much for a nickel, too/Pepsi-Cola is
the drink for you." "Nickel, Nickel" will eventually become a hit record and will be translated
into 55 languages.

CEO Walter Mack adopts the standardized, embossed twelve-ounce bottle, which debuts with the
"Pepsi-Cola" label blown and baked into the glass. A new logo, with more rounded script
letters, is adopted.

Mack sponsors a nationwide essay contest which ultimately leads to the hiring of Allen McKellar
and Jeannette Maund, among the first African Americans hired in a professional capacity by a
major U.S. corporation.

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1941
In support of America's war effort, Pepsi changes the color of its bottle crowns to red, white
and blue. A Pepsi canteen in Times Square, New York, operates throughout the war, enabling
more than a million families to record messages for armed services personnel overseas.

1943
The "Twice as much" advertising strategy expands to include the theme Bigger drink, better taste."

1946
World War II demands that sugar be rationed again. To counter the effects of rationing,
Mack purchases a sugar plantation in Cuba, which proves to be a highly profitable venture.

Pepsi's theme line becomes "Bigger Drink, Better Taste." Pepsi-Cola moves into Latin America.

1947
International profits reach $6,769,000. Pepsi moves into the Philippines and Middle East.

1948
African American to appear in a national consumer campaign when Pepsi initiates a campaign
targeting the African-American market.

1950
Alfred N. Steele becomes President and Chief Executive Officer of Pepsi- Cola. Mr. Steele's wife,
Hollywood movie star Joan Crawford, is instrumental in promoting the company's product line.

Pepsi-Cola's advertising keeps pace with consumer tastes as Steele pioneers the promotion of
Pepsi-Cola as an experience rather than a bargain. The "Twice as much for a nickel" slogan
gives way as "More Bounce to the Ounce" takes Pepsi into the energetic decade.

1953
Americans become more weight-conscious, and a new strategy based on Pepsi's lower caloric
content is implemented with "The Light Refreshment" campaign.

1954
"The Light Refreshment" evolves to incorporate "Refreshing Without Filling."

1956
A total of 149 Pepsi-Cola bottling plants operate in 61 countries outside the U.S.

1958
Sometimes referred to as "the kitchen cola," as a consequence of its longtime positioning as
a bargain brand, Pepsi now identifies itself with young, fashionable consumers with the "Be
sociable, have a Pepsi" theme. A distinctive

1959
Soviet Premier Nikita Khrushchev and U.S. Vice President Richard Nixon meet in the soon-to-be-

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famous "kitchen debate" at an international trade fair. The meeting, over Pepsi, is photo-captioned
in the U.S. as "Khrushchev Gets Sociable."

Historical Events - 1960

1961
Pepsi further refines its target audience, recognizing the increasing importance of the younger,
post-war generation. "Now it's Pepsi, for those who think young" defines youth as a state of mind
as much as a chronological age, maintaining the brand's appeal to all market segments.

Harvey C. Russell joins Pepsi-Cola, becoming the first African American named a Vice President
in a major U.S. corporation.

1962
Pepsi receives its new logo, the sixth in Pepsi history. The "serrated" bottle cap logo debuts,
accompanying the brand's groundbreaking "Pepsi Generation" ad campaign.

1963
In one of the most significant demographic events in commercial history, the post-war baby boom
emerges as a social and marketplace phenomenon. Pepsi recognizes the change, and positions
Pepsi as the brand belonging to the new generation - The Pepsi Generation. "Come alive! You're
in the Pepsi Generation" makes advertising history. It is the first time a product is identified, not so
much by its attributes, as by its consumers' lifestyles.

1964
A new products, Diet Pepsi, are introduced into Pepsi-Cola advertising.

1965
Expansion outside the soft drink industry begins. Frito-Lay of Dallas, Texas, and Pepsi-Cola
merge, forming PepsiCo, Inc.

Military 12-ounce cans are such a success that full-scale commercial distribution begins.

Mountain Dew launches its first campaign, "Ya-Hoo Mountain Dew. It'll tickle your innards."

1966
Diet Pepsi's first independent campaign, "Girl watchers," focuses on the cosmetic benefits of the
low-calorie cola. The "Girl watchers" musical theme becomes a Top 40 hit. Advertising for another
new product, Mountain Dew, a regional brand acquired in 1964, airs for the first time,
built around the instantly recognizable tag line, "Ya-hoo, Mountain Dew!"

1967
When research indicates that consumers place a premium on Pepsi's superior taste when chilled,
"Taste that beats the others cold. Pepsi pours it on" emphasizes Pepsi's product superiority.
The campaign, while product- oriented, adheres closely to the energetic, youthful lifestyle
imagery established in the initial Pepsi Generation campaign.

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1969
"You've got a lot to live. Pepsi's got a lot to give" marks a shift in Pepsi Generation advertising
strategy. Youth and lifestyle are still the campaign's driving forces, but with "Live/Give," a new
awareness and a reflection of contemporary events and mood become integral parts of the
advertising's texture.

1972
Preliminary trade agreement is signed between the U.S.S.R. and PepsiCo, Inc.

1973
"Join the Pepsi people, feelin' free" captures the mood of a nation involved in massive social
and political change. It pictures us the way we are - one people, but many personalities.
Pepsi receives its new logo, the seventh in Pepsi history. The logo evolves into a boxed look
with minor typeface changes occurring throughout the next decade.

The third Mountain Dew slogan, "Put A Little Ya-Hoo in Your Life," debuts.

1974
First Pepsi plant opens in the U.S.S.R.

Television ads introduce the new theme line, "Hello, Sunshine, Hello, Mountain Dew."

1975
The Pepsi Challenge, a landmark marketing strategy, convinces millions of consumers that Pepsi's
taste is superior. Pepsi Light, with a distinctive lemon taste, introduces an alternative to traditional
diet colas. The two-liter Plastic shield bottle is introduced.

1976
"Have a Pepsi day" is the Pepsi Generation's upbeat reflection of an improving national
mood. "Puppies," a 30-second snapshot of an encounter between a very small boy and some
even smaller puppies, becomes an instant commercial classic.

1979
With the end of the '70s comes the end of a national malaise. Patriotism has been restored by an
exuberant celebration of the U.S. bicentennial, and Americans are looking to the future with
renewed optimism. "Catch that Pepsi spirit!" catches the mood and the Pepsi Generation carries
it forward into the '80s.

Historical Events - 1980

1982
With all the evidence showing that Pepsi's taste is superior, the only question remaining is how to
add that message to Pepsi Generation advertising.

The answer? Pepsi's got your taste for life!" a triumphant celebration of great times and great
taste.

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1983
The soft drink market grows more competitive, but for Pepsi drinkers, the battle is won. The time
is right and so is their soft drink. It's got to be "Pepsi Now!"

1984
A new generation has emerged - in the United States, around the world and in Pepsi advertising,
too. "Pepsi the Choice of a New Generation" announces the change, and the most popular
entertainer of the time, Michael Jackson, stars in the first two commercials of the new campaign.
The two spots quickly become "the most eagerly awaited advertising of all time."

Lemon Lime Slice, the first major soft drink with real fruit juice, is introduced, creating a new soft
drink category, "juice added." In a subsequent line of extensions, Mandarin Orange Slice goes on
to become the number-one orange soft drink in the U.S. Diet Pepsi is reformulated with
NutraSweet (aspartame) brand sweetener.

1985
Lionel Ritchie leads a star-studded parade into "New Generation" advertising followed by pop
music icons Tina Turner and Gloria Estefan. Sports heroes Joe Montana and Dan Marino are
part of it, as are film and television stars Teri Garr and Billy Crystal.
Geraldine Ferraro, the first woman nominated to be vice president of the U.S., stars in a Diet Pepsi
spot. And the irrepressible Michael J. Fox brings a special talent, style and spirit to a series of
Pepsi and Diet Pepsi commercials, including a classic, "Apartment 10G."
By the end of the year, the New Generation campaign earns more than 58 major advertising and
film-related awards. Pepsi's campaign featuring
Ritchie is the most remembered in the country, according to consumer preference polls.
1986
7-Up International is acquired in Canada. "Dew It Country Cool" becomes the new slogan for
Mountain Dew. Pepsi broadens Mountain Dew popularity with the introduction of Diet Mountain
Dew. Mountain Dew is the sixth-largest brand in the industry, supporting double-digit growth
annually for the past eight years.

1987
After an absence of 27 years, Pepsi returns to Times Square, New York, with a spectacular 850-
square-foot electronic display billboard declaring Pepsi to be "America's Choice."

1988
Michael Jackson returns to "New Generation" advertising to star in a four-part episodic"
commercial named "Chase." "Chase" airs during the Grammy Awards program and is
immediately hailed by the media as "the most-watched commercial in advertising history."

1989
"The Choice of a New Generation" theme expands to categorize Pepsi users as "A Generation
Ahead!"

In a widely praised initiative designed to help stem the severe dropout problem in U.S. high
schools, Pepsi-Cola launches the pilot phase of a multi-million-dollar program, the Pepsi
School Challenge, in inner-city schools in Dallas and Detroit.

Pepsi-Cola introduces an exciting new flavor, Wild Cherry Pepsi.

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1990
Teen stars Fred Savage and Kirk Cameron join the "New Generation" campaign, and football
legend Joe Montana returns in a spot challenging other celebrities to taste-test their colas
against Pepsi. Music legend Ray Charles teams up with Uh-Huh Girls. The slogan for Diet Pepsi
is modified to "You Got The Right One Baby, Uh-Huh."

Craig E. Weatherup is named CEO of Pepsi-Cola North America, as Canada becomes part
of the company's North American operations.

Pepsi-Cola unveils its new logo, the eighth in 93 years. To foster the earlier scripted logo's sense
of movement, "Pepsi," now in italic capital typeface, is removed from a smaller blue and red Pepsi
swirl and runs vertically up the package.

The Pepsi School Challenge wins the U.S. Department of Labor "LIFT" Award for its efforts to
improve education and academic achievement of students preparing for the workforce of
tomorrow.

1991
"You got the right one baby" is modified to "You got the right one baby, uh-huh!" The "Uh-Huh
Girls" join Ray Charles as backup singers and a campaign soon to become the most popular
advertising in America is on its way. Supermodel Cindy Crawford stars in an award-winning
commercial made to introduce Pepsi's updated logo and package graphics.

1992
Celebrities join consumers, declaring that they "Gotta have it." The interim campaign supplants
"Choice of a New Generation" as work proceeds on new Pepsi advertising for the '90s. Mountain
Dew growth continues, supported by the antics of an outrageous new Dew Crew whose claim to
fame is that, except for the unique great taste of Dew, they've "Been there, done that, tried that."
Pepsi-Cola Company implements the "Right Side Up" philosophy, where the customer and
frontline employees are at the top of the organization.
Publisher Earl Graves and basketball superstar Earvin "Magic" Johnson are appointed Pepsi-Cola
franchisees for the Washington, D.C. market. Their new company quickly becomes one of the
largest African American-run companies in the U.S.

1993
"Be young, have fun, drink Pepsi" advertising starring basketball superstar Shaquille O'Neal is
rated as best in U.S.

1994
New advertising introducing Diet Pepsi's freshness dating initiative features Pepsi CEO Craig
Weatherup explaining the relationship between freshness and superior taste to consumers.

1995
In a new campaign, the company declares "Nothing else is a Pepsi" and takes top honors in the
year's national advertising championship.

Starbucks and Pepsi team up with the North American Coffee Partnership and launch Mazagran,
a carbonated coffee drink.

Pepsi enters the dairy beverage category with Smooth Moos smoothies.

24
1996
In February of this year, Pepsi makes history once again by launching one of the most
ambitious entertainment sites on the World Wide Web. Pepsi world eventually surpasses all
expectations, and becomes one of the most launched and copied sites in this new medium, firmly
establishing Pepsi's presence on the Internet.

1997
In the early part of the year, Pepsi pushes into a new era with the unveiling of the
Generation Next campaign. Generation next is about everything that is young and fresh, a
celebration of the creative spirit. It is about the kind of attitude that challenges the norm with new
ideas, at every step of the way.

1998
Pepsi continues its popular "Generation Next" campaign with spots that include: Goose, Gnat and
Stunt Driver (featuring racing superstar Jeff Gordon).

In 1998 Pepsi launches its new look, called "Globe," which prominently features a stylized, three-
dimensional Pepsi Globe set against a blue ice backdrop. It affects all can, bottle, and
multican packaging for Pepsi, Diet Pepsi, Caffeine Free Pepsi and Caffeine Free Diet Pepsi.

1999
"The Joy of Cola" new advertising campaign for Brand Pepsi features the voices of actors Marlon
Brando, Isaac Hayes and "Queen of Soul" Aretha Franklin. The spots also feature child
actress Hallie Eisenberg as the "Little Girl."

Pepsi and Lucasfilm team up again as "Star Wars: Episode I - The Phantom Menace" hits movie
theaters. Consumer excitement surrounding the long-awaited return of the Star Wars series is
heightened as special Pepsi bottles and cans offer 24 different Star Wars characters. The
collection series includes a gold Yoda can.

Pepsi recruits its first "spokesalien" Marfalump to star in its commercials supporting the campaign.
Marfalump, who was created by BBDO and George Lucas' Industrial Light and Magic Company,
has two great passions:
Pepsi and Star Wars.
The spots, titled "Landing" and "Play Acting," illustrate the great lengths the
young alien will go to enjoy both of his passions. Pepsi-Cola North America welcomes Gary
Rodkin as President and CEO.
In a dramatic restructuring of the business, Pepsi announces one of the largest IPOs in history.
On March 31, 1999, The Pepsi Bottling Group, Inc. (PBG) becomes a publicly traded company
and Pepsi's largest bottler. PBG is headed by President and CEO Craig Weatherup.
The new look replaces Pepsi's current pedestal logo with a new brand identity that also more
prominently features the Pepsi Globe against a blue background.
Pepsi celebrates its centennial year with a birthday party that is attended by Pepsi-Cola bottlers
from all over the world. Joining the festivities are Pepsi stars and friends including Ray Charles,
Kool and the Gang and the Rolling Stones.
President and Mrs. George Bush, Lady Thatcher and Walter Cronkite also help to commemorate
the occasion where Pepsi's legacy is honored and a new look for the millennium is unveiled. The
three-dimensional globe against an ice blue background becomes the universal symbol for one
Pepsi family - poised for innovation and world leadership as it enters the new century.

25
2000
Faith Hill, Sammy Sosa and Ken Griffey Jr. - three of the hottest names in entertainment - signed
new deals to endorse Pepsi-Cola products. Singing sensation Faith Hill, who has rocked the
charts with her top 10 hits, stared in a new "Joy of Cola" ad with "Pepsi Girl" Hallie Eisenberg. The
ad debuted during the March 26 Academy Awards broadcast. Major League Baseball All-Stars
Sammy Sosa and Ken Griffey Jr. also stepped up to bat in new Pepsi commercials. In addition to
the ads, each slugger was be involved in Pepsi's "Takin' it to the Fields" youth baseball and
softball programs, as well as appeared on in-store promotional materials for the brand.
From Boston to San Francisco and everywhere in between, consumers' cola choice is clear. In
more than 30 markets currently conducting the Pepsi Challenge, the tastes of Pepsi and Pepsi
ONE are preferred over Coke products in every market, especially in Philadelphia, Dayton,
Tucson, San Antonio and Seattle. In a cross-promotion designed to further engage youth in our
products, consumers who take the Pepsi Challenge receive "starter points" for this summer's
"Choose Your Music" program. Participants can also have their photos taken and posted online at
www.pepsi.com, driving traffic to and awareness of Pepsi's Internet site.
2001
Pop superstar Britney Spears appears in her first Pepsi commercial during the 2001 Academy
Awards. The high-energy spot also runs online, where more than 2 million fans click their way to
Britney's own version of "The Joy of Pepsi."
Pepsi Stuff.com lets consumers redeem points from specially marked packages of Pepsi products
for more than a half-million cool prizes, and proves to be Pepsi's most popular online promotion
ever. Colombian singing sensation Shakira stars in a series of new commercials for Pepsi just as
her debut English-language album hits stores in the U.S. At the same time, Pepsi agrees to
sponsor the Latin pop star's worldwide concert tour.
Pepsi unveils its Fun Wraps Factory, letting consumers personalize Pepsi cans with fun designs
and unique messages. With a wide variety of sports, entertainment and holiday images to
choose from, Pepsi drinkers begin creating their own can labels for just about any occasion.
Pepsi puts "a little twist on a great thing", introducing lemon-flavored Pepsi Twist and Diet
Pepsi Twist. The product launch marks the return to lemon-flavored colas for Pepsi, which
distributed Pepsi Light until the mid-1980s.

26
PepsiCo entered India in 1989 and has grown to become one of the country’s leading food and
beverage companies. One of the largest multinational investors in the country, PepsiCo has
established a business which aims to serve the long term dynamic needs of consumers in India.

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

PepsiCo nourishes consumers with a range of products from treats to healthy eats, that deliver joy
as well as nutrition and always, good taste. PepsiCo India’s expansive portfolio includes iconic
refreshment beverages Pepsi, 7 UP, Mirinda and Mountain Dew, in addition to low calorie options
such as Diet Pepsi, hydrating and nutritional beverages such as Aquafina drinking water, isotonic
sports drinks-Gatorade, Tropicana100% fruit juices, and juice based drinks – Tropicana Nectars,
Tropicana Twister and Slice.Local brands – Lehar Evervess Soda, Dukes Lemonade and Mangola
add to the diverse range of brands.
PepsiCo’s foods company, Frito-Lay, is the leader in the branded salty snack market and all Frito
Lay products are free of trans-fat and MSG. It manufactures Lay’s Potato Chips, Cheetos
extruded snacks, Uncle Chipps and traditional snacks under the Kurkure and Lehar brands. The
company’s high fibre breakfast cereal, Quaker Oats, and low fat and roasted snack options
enhance the healthful choices available to consumers. Frito Lay’s core products, Lay’s, Kurkure,
Uncle Chipps and Cheetos are cooked in Rice Bran Oil to significantly reduce saturated fats
and all of its products contain voluntary nutritional labeling on their packets.The group has built an
expansive beverage and foods business. To suppor tits operations, PepsiCo has 43 bottling plants
in India, of which 15 are company owned and 28 are franchisee owned. In addition to this,
PepsiCo’s Frito Lay foods division has 3 state-of-the-art plants. PepsiCo’s business is based on its
sustainability vision of making tomorrow better than today. PepsiCo’s commitment to living by
this vision every day is visible in its contribution to the country, consumers and farmers.

PepsiCo’s major business operation division:-

27
Mainly there are three major business operating division of PepsiCo in the world wide. These are

1. Beverages

2. Snack-foods

3. Restaurants

28
 BEVRAGES
PepsiCo’s beverages business was founded in 1898 by the pharmacist named Caleb Bradham,
who created a special beverage; a soft drink, in the backroom of his drug store in New Bern, North
Carolina. This new soft drink called “Brad’s Drink” had a unique mixture of cola nut extract, vanilla
and rare oils. Caleb began to advertise his new creation with the theme “exhilarating invigorating,
Aids digestion and renamed it as “Pepsi-Cola”
Caleb Bradhom began his cola operation in1902. The Pepsi cola company was headquartered in
the backroom of his drug store when he packaged the syrup for sell to other soda fountains. The
business increased on June 16th, 1903, “Pepsi- cola was officially registered with the us patent
office. And as a result Caleb Bradham began to franchise Pepsi-cola to many independent
investors. By the end of 1910, Pepsi-cola was franchised in 24 stores.
Until world war first Pepsi-cola company achieved 17 years of success and a new theme was
introduced “drink-Pepsi-cola” it will satisfy you. However after the years calebBradham suffered
bankruptcy as a result Pepsi-cola become a subsidiary to left incorporated a large chain of candy
stores and soda foundations.
Today, Pepsi Cola Company is a major division of PepsiCo’s corporate structure Pepsi-cola
companies a wide range of beverages to retail, restaurants and food services in more than one
hundred countries and territories around the world and brings in a annual revenue of $ 23 billion.
There are 200 plants in the U.S. and Canada as well as 530 plants throughout the rest of the world
that produces Pepsi-cola’s beverage. five of Pepsi-cola’s brand names: Pepsi, diet Pepsi,
mountain dew, 7up and Miranda each bring in annual revenue in consumer sales of $1 billion in
1992 a partnership between Thomas J. Lipton and Pepsi was formed this partnership produce,
market and distributes Lipton brew, Lipton brisk and Lipton fountain ice-tea in 1993 Peps
introduced a new product of low calorie called Pepsi max for international market, now it is selling in
39 countries and is largest selling cola brand outside the US.
PepsiCo is continuing to expand and introduced new alterative beverages in the market there are
four alternative beverage that are currently being tested in our market today Mazarin, a cold
sparkling coffee based beverage, Aquafina, bottled water and a low fat milk shake called smooth
moos. The latest beverage was launched on May

22, 1996 in Philadelphia, Pepsi-Kona a new cola, is a combination of the Pepsi-cola flavor and the
Kona blend of coffee.

29
 SNACK-FOODS
Pepsi co’s food business started in 1932 at the birth of both, the FRITO-LAY company, a producer
of corn-chips and H.W lay company, a producer of potato chips. In 1961, the FRITO-LAY company
merged with the H.W lay company to form FRITO-LAY, Inc. Today FRITO-LAY Inc; is a major
division in PepsiCo’s corporate structure the FRITO-LAY Inc is the world’s number one snack food
company in the US and in the most of its 39 International markets.
FRITO-LAY manufactures distributors and markets snacks all over the world. In 1995, FRITO-LAY
company more 150 verities of snack food products Worldwide currently FRITO-LAY’S snack
products are available in 88 countries and territories outside North America.

RESTURANTS
PepsiCo is the largest restaurants system in the world, the restaurant segments is engaged in the
operation, development, franchising and licensing of pizza hut, Taco Bell and “KFC” concepts, In
1997 Pizza Hut become a part of PepsiCo and is currently the leader among the Pizza restaurant
chain in the US. Taco Bell, the largest Mexican-style restaurant in the US becomes a part of
PepsiCo’s restaurant system. In.1978. In 1986 KFC joined PepsiCo and is the leading fast food
chicken restaurant in the US.
PepsiCo’s have a record for growth and have produced more than $5 billion in revenues.

Type Wholly owned subsidiary

Founded Wichita, Kansas (1958)

Headquarters Addison, United States

30
 Key people
Da and Frank Carney (founders)
David C Novak (Chairman)
Scott Berggren (President)

Industry Restaurants
Products Italian
pizza ·pasta ·desserts
Employees over 30,000
Parent PepsiCo (1977–1997)
Yum! Brands

FINANCIAL INFORMATION
PepsiCo was formed back in 1965 through a merger between Pepsi-cola Company and FRITO
LAY, Inc. PepsiCo has enjoyed success in it’s earlier years but of let, profits have been decline.
Consider that net income fall from $1.990 billion in 1995 to $ 1.865 billion in 1996. This represents
a 6% decrease. Internationally, Pepsi is facing even more problems with an $ 846 million loss in
1996.Pepsi plant to address these problems with an aggressive marketing camps PepsiCo stock,
listed under the trading symbol PepsiCo, is formed on the NYSE which is its principle market as
well as on the Amsterdam, Midwest, Swiss and Tokyo exchange. Currently it has market
capitalization of $55.2 billion, with $1.5 billion shares outstanding an d approximately 20700
shareholder. The stock earning per share through the end of 1996 was $.75, which is down 25%
from last year earnings per share of $1.00 at the end of 1995 as of July 18,1997 the 52 weeks
range for the stock has been from a low of $28 to a high of $ 39.50. Quarterly cash dividends have
been paid since PepsiCo was formed in 1965, and the dividends per share have increased for 24
consecutive years. 1996 PepsiCo paid annual dividends of .50, which represents a dividends yield
of 1.39 %
PepsiCo Income Statement

2008 2007 2006

Revenue ($ mil.) 43,251. 474. 137.0
39 35
0 0
Gross Profit ($ mil.) 22,900. 436. 19,375.0
21 19
0 0
Operating Income ($ mil.) 7,350. 855.0 228.0
7
0
Total Net Income ($ mil.) 5,142. 658. 642.0
5 5
0 0
Diluted EPS (Net Income) 3.21 3.41 3.34

PepsiCo Quarterly Statement

31
 Quarter Ending Jun 09 Quarter Ending Mar 09 Quarter Ending Dec 08
Revenue ($ mil.) 10,592.0 8,263.0 12,729.0
oss Profit ($ mil.) 5,711.0 4,519.0 6,558.0
Operating Income 2,337.0 1,613.0 1,136.0
($ mil.)
Total Net Income 1,668.0 1,141.0 719.0
($ mil.)
Diluted EPS 1.06 0.72 0.47
(Net Income)

Balance Sheet (at a glance) in Millions

32
 \

33
Financial information about PepsiCo’s competitive
intelligence

Coca-cola Dr Paper Snack group Kraft Food

Annual Sales ($ mil.) 31,944.0 5,710.0 42,201.0
Employees 92,400 20,000 98,000
Market Cap ($ mil.) 115,663.5 6,922.3 42,493.7

Products and brands of PepsiCo

PepsiCo is home to hundreds of brands around the globe. Listed here are some of most
recognized.

34
  Frito-Lay brands
 Pepsi-Cola brands
 Gatorade brands
 Tropicana brands
 Quaker brands

Frito-Lay brands
It offers a wide variety of fun foods and sensible snacks to satisfy yours snacking needs. From
mouth-watering Potato chips and Corn-chips, to hasty pretzels, and savory cookies, Frito-lay has a
snack for you!

Products
 Lay's potato chips  Grandma's cookies
 Lay's Kettle Cooked  Munchos potato Outside North America
potato chips crisps
 Wavy Lay's potato  Smartfood popcorn  Bocabits wheat
chips  Baken-ets fried pork snacks
 Baked Lay's potato skins  Crujitos corn snacks
crisps  Oberto meat snacks  Fandangos corn
 Maui Style potato  Rustler's meat snacks snacks
chips  Churrumais fried corn  Hamka's snacks
 Ruffles potato chips strips  Niknaks cheese
 Baked Ruffles potato  Frito-Lay nuts snacks
crisps  Frito-Lay, Ruffles,  Quavers potato
 Ruffles Flavor Rush Fritos and Tostitos dips snacks
potato chips & salsas  Sabritas potato chips
 Doritos tortilla chips  Frito-Lay, Doritos and  Smiths potato chips
 Baked Doritos tortilla Cheetos snack crackers  Walkers potato crisps
 chips  Fritos, Tostitos,  Walkers Square
 3D's snacks Ruffles and Doritos potato
 Tostitos tortilla chips snack kits  snacks
 Walkers French Fries

35
 Baked Tostitos tortilla  Hickory Sticks potato sticks
chips  Hostess Potato  Walkers Monster
 Santitas tortilla chips  Lay's Stax potato Munch corn snacks
 Fritos corn chips crisps  Gamesa cookies
 Cheetos cheese  Doritos Rollitos  Doritos Dippas
flavored snacks  Lay's Fries  Sonric's sweet snacks
 Rold Gold pretzels &  Natural Lays  Wotsits corn snacks
snack mix  Natural Ruffles  Walkers Sensations
 Funyuns onion  Natural Cheetos  Doritos A La Turca
flavored rings  Natural Tostitos  Lay's Mediteranneas
 Go Snacks  Miss Vickie's potato  Red Rock Deli
 Sunchips multigrain chips  Kurkure
snacks  Munchies snack mix  Smiths Sensations
 Sabritones puffed  Lays Artesanas PC
wheat snacks  Cheetos Shots
 Cracker Jack candy  Quavers Snacks
coated popcorn
 Chester's popcorn

Pepsi-Cola brands
Pepsi-cola is most commonly called Pepsi, is a soft drink produced by PepsiCo, which is sold
worldwide in stores, restaurants and vending machines. The brand was trade marked on June
16, 1903, though the drink was 1 st made august 28, 1998 by pharmacist called Bradham.
Present times there are following products are available in the world wide.

Products
Pepsi Mug Root Beer
 Pepsi  Mug Root Beer
 Caffeine Free Pepsi  Diet Mug Root Beer
 Diet Pepsi  Mug Cream Soda
 Caffeine Free Diet Pepsi  Diet Mug Cream Soda
 Diet Pepsi Max
 Jazz Diet Pepsi
 Diet Pepsi Lime No Fear
 Diet Pepsi Vanilla
 Pepsi Wild Cherry  No Fear
 Diet Pepsi Wild Cherry  No Fear Motherload
 Pepsi ONE  Sugar Free No Fear
Motherload

Dole (License)
36
  Dole juices and juice drinks
Sierra Mist  Dole Plus fortified juices

 Sierra Mist
 Diet Sierra Mist Outside North


Sierra Mist Cranberry Splash
Sierra Mist Free Cranberry
America
Splash
 Mirinda
 7UP (International)
Tropicana  Pepsi Limón
 Kas
 Tropicana lemonade and  Teem
punches  Pepsi Max
 Tropicana Light lemonade  Pepsi Light
and punches  Manzanita Sol
 Tropicana Twister sodas  Paso de los Toros
 Fruko
 Evervess
Ocean Spray (License)  Yedigun
 Shani
 Ocean Spray juices  Fiesta
 D&G (License)

AMP
Energy Aquafina
More Power Make your
to You body happy! Dole Juice
ampenergy. aquafina.co Healthy juices on the go
com m dolejuice.com
Ethos
Water Gatorade
Helping Rehydrate.
children get Replenish. Lipton Brisk
clean water. Refuel. It’s bold. It’s refreshing.
ethoswater. gatorade.co It’s Lipton Brisk.
com m liptonbrisk.com

37
 Lipton Iced
Tea
Refreshmen Lipton Pure
t comes in Leaf Tea
many Lipton Tea
flavors. can do that. Mountain Dew
liptonicedte liptonpurele Do the Dew
a.com af.com mountaindew.com

Mug Root
Beer
The taste No Fear
you crave Man Up! Pepsi
mugrootbe energy.nofe It’s the cola
er.com ar.com pepsiusa.com

Pepsi Max Sierra Mist

The Propel It’s that refreshing
Invigorating Water. <a href="/pepsi_redirect.php?
Cola Propelled. theurl=sierramist.com"
pepsimax.c propelwater. target="_blank" class
om com

Tropicana Brands
Start your day with the perfect combination of fresh squeezed taste and invigorating nutrition
Tropicana pure premium not from concentrate which means its 100% juice with no water added.
Plus, an 80z glass counts as to servings of fruit and provides a full day’s supply of vitamin C. so
add test and nutrition to your morning with a delicious today available in a verity flavors, Tropicana
pure premium is available in orange juice, Grapefruit juice and orange juice blended flavors. Look
for Tropicana pure premium in a package size to meet your needs: 80z, 100z, 140z, 160z, 320z
640z, 960z 1280z and our 590z carafe

Products

 Tropicana pure premium juice.

 Tropicana twister juice drinks.
38
  Tropicana smoothies.
 Dole juices (license)

Gatorade brand
Products
 Gatorade thirst quencher.
 Gatorade frost thirst quencher.
 Gatorade ice thirst quencher.
 Gatorade fierce thirst quencher.
 Propel fitness water.

Quaker bran
Products

 Quaker brand
 Life cereal
 Quaker rice snacks (Quaker)
 Quaker rice cakes

ABOUT THE SOFT DRINK

39
THAT’S IN SOFT DRINK?
Soft drink has been part of American lifestyle for more than 100 years. Many of today’s soft drinks
are the same as the first ones enjoyed in the 1800’s. Soft drink production begins with creation of
flavored syrup using a closely guarded company recipe. The syrup is mixed with purified water
and then carbonated by adding carbon dioxide gas under pressure. This carbonation creates the
“tingle fizz” that gives soft drinks a refreshing taste.
Now for a closer look at soft drink ingredients……………
Like other foods, the ingredients that are used in making soft drink are approved and closely
regulated by the US Food and Drug Administration (FDA). All the ingredients used in soft drinks
are found in a variety of other foods.

 WATER
Soft drink production starts with a pure source of water. Regular soft drink contains 90% water
while diet soft drink contains up to 99% water Drinking water contains trace amount of various
elements that affect its taste. You have probably noticed that top differ in carious regions of the
county. Bottler use sophisticate filtering and other treatment equipments to remove any residual
impurities and to standardize the water used to make soft drinks. That’s why your favorite soft
drink tastes the name in New York as it dies in India.

 CARBON DIOXIDE
A colorless and odorless gas, carbon dioxide is the essential characterizing ingredient in all
“carbonated” beverages. It is given off when we breathe and is used by the plants to product
oxygen.
When dissolved in water, carbon dioxide imparts taste. For that reason natural sources of
carbonated. Of effervescent, mineral water were once highly prized. These rare mineral water
were once also believed to have beneficial medicinal properties. Efforts to make and sell
“artificial effervescent mineral water” underway Europe and US by 1800.
It was the innovative step of adding flavors to these popular “soda water” that gave birth to the
soft drink beverages we enjoy today. In these days of soft drink manufacturing, carbon dioxide
was made from sodium salts. This is why carbonated beverages were called; sodas or “soda
water”. Today bottlers buy pure carbon dioxide as a compressed gas in the high-pressure
cylinders. Carbon dioxide gas is absorbed into flavored soft drink in a carbonator machine just
before the container is sealed. While under pressure and chilled, soft drink may absorb up to
four times the beverage volume of carbon dioxide.

FLAVORS

40
One of the most important ingredients in the soft drinks is flavoring. Most soft drink bottles mix
many individual flavors to create distinctive tastes. Natural flavors in the soft drink come from
spices, natural extracts and oils. Fruit –flavored soft drink such as orange and lemon-lime often
contains natural fruit extracts. Other flavors such as root beer and ginger are contain flavoring
made from herbs and spices. There are also some artificial or manmade flavoring used in soft
drinks. Nature does not produce enough of some flavors to satisfy world demand. Also some
flavors are limited geographically and seasonally .

COLORS
Many people do not realize important color is to taste perception. Color affects our
psychological impression of food. If you don’t believe it. Try eating a familiar food in the dark.
The color used in the food and beverages comes both from natural and synthetic sources.

CAFFEINE
Caffeine is substance that occurs naturally in more than 60 plants including coffee beans,
tealeaves, kola nuts and cocoa beans. In some cases, small amounts of caffeine are added to
soft drinks as a part of the flavor profile. The amount of caffeine in soft drinks is only a fraction
of that found in an equal amount of coffee or tea.
Caffeine has a classic bitter taste that enhances other flavors. It has been part of almost every
cola and pepper type beverage since they were first formulated more than 100 years ago and
has been enjoyed in coffee, tea and chocolate beverages for centuries.
Even though some people feel the effects of caffeine are harmful, scientific research has
refused these claims. The ling history of caffeine’s use confirms that itis safe when consumed
in moderation. For people who wish to restrict their caffeine intake, many caffeine free soft
drinks are available.
ACIDULANTS
Similar to fruit juices and many other food products, most drinks are slightly acidic. Acidulates
add a pleasant tartness to soft drinks for one or two common food acidulates (phosphoric acid
and citric acid) occasionally; other acidulates such as malice acid is also used.

PRESERVATIVE
Soft drinks do not normally get spoiled because of their acidity and carbonation. However,
storage conditions and storage tome can sometimes impact taste and flavor. For this reason
some vs. contains small amounts of preservatives that are commonly used in many foods.

 POTASSIUM
Potassium is another essential nutrients found in many natural and man made food ingredient
like sodium, potassium exists naturally in drinking water and therefore, in soft drinks. Small
amount of potassium are also found in some of the flavoring agents and other ingredients used
in soft drinks.

41
  SODIUM
Because the name “soda pop” and “soda water” were associated with early soft drinks. Many
people falsely believe that carbonated beverages contains significant amount of sodium. That
is true. Sodium, the name form of various salts, is present in many natural and manmade
compounds. It is an essential nutrient responsible for regulating and transferring body fluids. As
well as other important body functions. Although an adequate daily intake of sodium is
necessary for good health, excessive consumption has been to high blood pressure in some
people.

 SWEETENERS
Non-diet soft drinks most regular (non-diet) soft drinks are sweetened with either sucrose or
high fructose corn syrup, (HFCS). A mixture of these sweeteners many also be used.
Sucrose, the familiar sweetener in your sugar bowl, cines firm sugarcane or sugar beets.

HOW SOFT DRINKS ARE MADE?

1 START WITH PURE WATER!

Soft drinks begin with purified water (much clearer than the tap water you drink at home). The
soft drink manufacturer filters tap water through fine, clean sand and gravel to get rid of any
undisclosed impurities that may pass through the finished drink and ensures that the water
does not contain any unwanted particles.

2ADD THE FLAVOUR

42
Once the water is purified, flavorings are added. These are prepared from
natural and nature identical sources and are added to a mixture of sugar and
purified water to make syrup. This forms the soft drink base.

3NEXT STEP, ADD THE BUBBLES

The purified water and syrup base are then blended together to form a 'still' drink
and then mixed with carbon dioxide gas (CO2) in a machine called a carbonator.

4FILLING THE BOTTLES

After the drink has been carbonated, it is transferred under pressure to the filling
machine. Here, the bottles or cans are filled and are then passed by conveyor
belt to the sealing machine.

5THE FINAL STAGE

The sealed bottles and cans are still quite cold at this stage, and if packed at this
temperature, moisture which forms on the container because of condensation
would cause the cartons to become wet and less manageable. To prevent this,
the bottles and cans are passed through a hot water spray to bring them up to
'room' temperature.

43
 6LABELS & PACKAGING and DELIVERY
Most soft drink bottles have labels applied by a labeling machine. There are still
some bottles, mostly returnable, which have the label information printed directly
on to the glass. Cans also have the label printed on them; before they arrive at
the soft drink manufacturing plant.

SLOGANS OF PEPSI
To promote the products of Pepsi the organization use various slogans. Some of
the slogans used in the various years are as follows.

1903
Exhilarating, Invigorating, Aids Digestion,
44
1907
Original Pure Food Drink

1915
For all thrust-Pepsi-Cola

1919
Pepsi-Cola it makes you Scintillate

1920
Drink Pepsi-Cola it will Satisfy you

1928
Pepsi you up!

1933
It’s the best Cola Drinks

45
1939
Twice as Much for a Nickel

1943
Bigger Drink, Better Test

1949
Why take Less when Pepsi’s Best

1958
Be Sociable, Have a Pepsi

1963
Come alive you are in the Pepsi Generation.

1973
Join the Pepsi People Feel in, Free.

1984
The Choice of a New Generation.

46
1987-1991
Pepsi's Cool
Yehi hai right choice Baby UH HUH

1992-1994
Be Young, Have Fun, Drink Pepsi

1995
Nothing else is a Pepsi

1997
Generation Next

1999
The joy of Cola

2001
Think Young Drink Young

47
 2003

It’s the Cola

2005
Ask for More

2006
Why you Dogging me

2008
Pepsify Karo gay

2009
Every Generation Refreshes the World

48
 2010
Youngistan mari jan
Badal Do Zamana

2011
Change the game

Advertisement of Pepsi
Pepsi spends a huge budget on advertisement. It uses celebrities
From all around the world to promote its product. Some of the entertainment
celebrities used by the pepsico in the world includes :-

Sharukh khan

Kareenakapur
49
Priyanka chopra

Amitabh bachan

Saifali khan

Briteny spears

Ricky martin

Jackie chen
50
 Steven seagal

Some of the sports celebrities used by PepsiCo in the world are

Sachin tendulkar

M.s.dhoni

Ronaldenio

Robert carlos

Inzmamulhaq

David bekham

Maradona

51
Survey Data collection Analysis Solution Follow-up

Marketing
Our topic customer degree of customer n satisfaction is related to the marketing management
.Here it is very essential to discos that what is marketing, and how it affects the customer test
and preference.
American Marketing Association, “It is process of planning and executing the conception, pricing,
promotion and distribution of aides, goods and services to create it change that satisfy individual
and organizational goal”
I am thinking that marketing is a view point, which looks at the entire businessprocess as a
highly integrated effort to discover, create, arouse, and satisfy consumer needs. An organization
business success largely depend from how efficiently the product and services are delivered to
customer and how differently those a customers perceive the deferens in delivery in comparison
to the competitors

PLUS

52
PepsiCo’s marketing strategy
After an intensive survey in LAHORE Market we have come on the point that Pepsi is known in
marketing world as a combination product, one that is purchased without much consideration. So
how is it decided which brand of soft-drink to buy?
In 1975, Pepsi introduced the Pepsi Challenge marketing campaign where PepsiCo set up a
blind tasting between Pepsi-Cola and rival Coca-Cola. During these blind taste tests the majority
of participants picked Pepsi as the better tasting of the two soft drinks. PepsiCo took great
advantage of the campaign with television commercials reporting the results to the public.

In 1976 Pepsi, RKO Bottlers in Toledo, Ohio hired the first female Pepsi salesperson, Denise
Muck, to coincide with the United States bicentennial celebration.

In 1996, PepsiCo launched the highly successful Pepsi Stuff marketing strategy. By 2002, the
strategy was cited by Promo Magazine as one of 16 "Ageless Wonders" that "helped redefine
promotion marketing."

In 2007, PepsiCo redesigned their cans for the fourteenth time, and for the first time, included
more than thirty different backgrounds on each can, introducing a new background every three
weeks. One of their background designs includes a string of repetitive numbers 73774. This is a
numerical expression from a telephone keypad of the word "Pepsi."

In late 2008, Pepsi overhauled their entire brand, simultaneously introducing a new logo and a
minimalist label design. The redesign was comparable to Coca-Cola's earlier simplification of
their can and bottle designs. Also in 4th quarter of 2008 Pepsi teamed up with Google/YouTube
to produce the first daily entertainment show on YouTube, Pop tub. This daily show deals with
pop culture, internet viral videos, and celebrity gossip. Pop tub is refreshed daily from Pepsi.

Since 2007, Pepsi, Lay's, and Gatorade have had a "Bring Home the Cup," contest for Canada's
biggest hockey fans. Hockey fans were asked to submit content (videos, pictures or essays) for
a chance at winning a party in their hometown with the Stanley Cup and Mark Messier.

In 2009, "Bring Home the Cup," changed to "Team Up and Bring Home the Cup." The new
installment of the campaign asks for team involvement and an advocate to submit content on
behalf of their team for the chance to have the Stanley Cup delivered to the team's hometown by
Mark Messier.

Pepsi has official sponsorship deals with three of the four major North American professional
sports leagues: the National Football League, National Hockey League and Major League
Baseball. Pepsi also sponsors Major League Soccer.

Pepsi also has sponsorship deals in international cricket teams. The Pakistan cricket team are
just one of the teams that the brand sponsors. The team wears the Pepsi logo on the front of
their test and ODI test match clothing.

On July 6, 2009, Pepsi announced it would make a $1 billion investment in Russia over three
years, bringing the total Pepsi investment in the country to $4 billion. [

53
In July 2009, Pepsi started marketing itself as Pepsi in Argentina in response to its name being
mispronounced by 25% of the population and as a way to connect more with all of the
population.

Bypass attack
The most indirect assault a strategy is bypassing the enemy all together and attacking easer
markets to broaden firm’s resource base. This strategy offers three lines of approach:
diversifying in to unrelated produces, diversifying into new geographical market, and live forging
in to new technology to supplant existing products. In the past decade, PepsiCo has used a
bypass strategy against coke by (1) the aggressive rolling out the Aquafina bottled water
nationally in 1997 before coke lunched Dasani brand: (2) purchasing orange juice giant
TROPICANA for$3.3 billion in 1998, which owned almost twice the market share to Coco-Cola’s
Minute-Maid: & (3) purchasing the Quaker Oates company, owner of market leader GATORAD
SPORTS DRINK, for $ 14 billion in 2000.

Building customer value, satisfaction, and loyalty

Today PepsiCo is the more successful brand in the world, the reason behind it is that PepsiCo
always believe in building customer value. Pepsi know that “customer is the king” and shall
continue to be so. Creating loyal customers is the heart of PepsiCo’s business. As marketing
experts Don Peppers and Martha Rogers say; “the only your company will ever create is the
value that comes from customers-the once you have now and the once you will have in the
future. Businesses succeed by gating, keeping, and growing customer. Customers are the only
reason you build factories, hair employs, schedule, meeting, lay fiber-optic lines, or engage in
any business activities. Without customers you don’t have a business.
To many companies think that it is the marketing or sales department’s job to acquire and
manage customer, but, infect, marketing only one facture in attracting and keeping customers.
The best marketing in world cannot sales the products that are poorly made are fail to meet a
need. The marketing can be effective only in companies whose employs have implemented a
competitively superior customer value delivery system

Survey example
Shri BanarshikeshriyaLassi, VARIETY told that, the seven up (the product of Pepsi) is sales itself
not by me, but aquafina water has been sold because most people commonly know about Bisleri
water not Aquafina. This is the effect of customer value and loyalty .

54
Believe that customers estimate which offer will deliver the most value. Customers are value-
maximizers, within the bounds of search costs and limited knowledge, mobility, and
income.They from an expectation of value and act on it.

Customer value & satisfaction

 Customer perceived value

 Total customer value
 Total customer cost

Personal benefit

55
Customer perceived value is the difference between the prospective customers evaluation
of all the benefits and all the costs of an offering & the perceived alternatives.

 Total customer benefit is the perceived monetary value of the bundle of economic
functional, and psychological benefits. Customer expect from a given market
offering because of a products, services, personnel & image involved.
 Total customer cost’s is the perceived bundle of costs customers expect to incur
in evaluating, obtaining, using, and disposing of the given market offering, including
monetary, time, energy, and psychological costs.

CPV is the based on the difference between what the customer gets & what he or she gives for
different possible choice. The customers get benefit & assume cost. The marketer increase the
value of the customer offering by some combination by rising economic, functional, or emotional
benefits and or reducing one or more of the various types of costs.

APPLYING VALUE CONCEPTS:-

PRODUCTPER CARTOON FLAVORSMARKET POSITION PRICE OFFER
PEPSI 9 BOTTEL CARBONETE GOOD 459/CLD 2 BTL 600
D ML / CLD
COKE 9 BOTTEL CARBONETE GOOD 452/CLD NO OFFER
D
(July 2009)

Q. If a customer wants to buy a cartoon from above, which will he buy?

Ans. Pepsi. Here the total customer cost is defining total customer benefits. Pepsi is giving offer
of 2 bottles of 600 ml. total customer cost is playing important role for attracting the customer to
purchase Pepsi because other benefits are same.

Total Customer Satisfaction

Whether the buyer is satisfied after purchase depends on the offers, performance in relationship
to the buyers interprets any deviations between the two. In general, satisfaction is a person’s
feelings of pleasure or disappointment that result from comparing a product’s perceived
performance (outcome) to their expectations. If the performance falls short of expectations, the
customers dissatisfied. If the performance matches the expectations, the customer is satisfied. If
the performance exceeds expectation, the customer is highly satisfied or delighted.

Q. How do buyers form their expectations?

56
 Expectations result from past buying experience; friends and associates ‘advice’ and
marketers’ and competitors information and promises.

Monitoring Satisfaction
PepsiCo is systematically measuring how will it treat their customers identifying the factors
shaping satisfaction and making changes in their operation & marketing as a result.

PepsiCo has always wise to measure customer satisfaction regularly because it know that one key
to customer retention is customer satisfaction. A highly satisfied customer generally stays loyal
longer, buys more as the company introduces new products and upgrades existing products.

Measurement Techniques
A number of methods exist to measure customers satisfaction periodic surveys can track
customer satisfaction directly and also ask additional questions to measure repurchase intention
and the respondent’s likelihood or willingness to recommend the company and brand to others.
Pepsi also use the periodic survey.

Web-based guest surveys- Now a days it become very popular during the recent year,
company conduct more than 55 of these surveys and netted 1,00,000 individual responses that
described guest satisfaction on topics including rides, dining, shopping, games, and shows
besides conducting periodic surveys companies can monitor their customer’s loss rate and
conduct customers who have stopped buying or who have switched to another supplier to find out
why? Finally companies can hire mystery shoppers to pose as potential buyers and report on
strong and weak points experienced in buying the company’s and competitors products.
In addition to tracking customer value expectations and satisfaction for their own firms companies
need to monitor their competitor’s performance in these areas one company was placed to find
that 80% of its customer said they were satisfied. Then the CEO found out that its leading
competitor had a 90% customer satisfaction score. He was further dismayed when he learned that
this competitor was aiming for a 95% satisfaction score.

Influence of customer satisfaction

For customer-centered company i.e. PepsiCo customer satisfaction is both a goal and a
marketing tool. Pepsi need to be specially concerned today with their customer satisfaction level
because the Internet provides a tool for customer to quickly spread bad word of mouth- as well as
good word of mouth-to the rest of the world.

Customer Complaints
Some companies think they are getting a sense of customer satisfaction by tallying complaints,
but studies of customer dissatisfaction action show that customers are dissatisfied with their
purchases above 25% of the time but that only above the 5% complain. The other 95% either feel
complaining is not worth the effort, or they do not know how or to whom to complain, and they just
stop buying.
57
Tips for recover customer goodwill
 Set of a 7*24*365 days toll-free “HOT-LINE” (By phone, fax, e-
mail) to receive and act on customer complaints

 We would love to hear from you. Call the PepsiCo customer

service manager at 1800224020

 Contract the complaining customer as quickly as possible. The

slower the company is to respond, the more dissatisfaction may
grow and lead to negative word of mouth.

 Accept responsibility for the customer’s disappointment; don’t

blame the customer.

 Use customer-service people who are empathic.

 Resolve the complaint swiftly and to the customer’s satisfaction.

 Some complaining customers are not looking for compensation so

much as a sign that the company cares.

 Always improve your product and service quality.

Maximizing customer life-time value (CLV)

Ultimately, marketing is the art of attracting and keeping profitable customers yet forever company
loses money on some of its customers well-known 20-80 value says that the top 20% of the
customers often generates 80% or more of the company’s profits. In some cases the profit
distribution may be more extreme-the most profitable 20% of customers (on a per capita basis)
may contribute as much as150-300% of profitability. The least profitable 10-20% of customers, on
the other hand can actually reduce profits between 50% & 200% per account with the middle 60-
70% breaking even.
Customer relationship management(CRM)
CRM is the process of carefully managing detailed information about individual customers and all
customer “touch points” to maximize customer loyalty.
A customer touch point is any occasion on which a customer encounters the brand and
product-from actual experience to personal or mass communication to casual observation.
The best example of CRM in Pepsi is contract framing with Punjab farmers. One of the most
successful Examples of contract farming is Pepsi food ltd. When Pepsi entered in 1989, it
established a state-of-the art tomato processing plant in Punjab to produce Pester and Purees as
part of its food business. To source quality raw tomatoes, the company entered in to contracts with
58
farmers to ensure the supply of the right product at the right time in the required quality for its
processing plant. Based on the success of contract farming for its processing plant. Based on the
success of contract farming for tomato, Pepsi successfully implemented the same for potato,
chilies and groundnut.
Thus Pepsi is doing business with C.R.M. (Customer Relationship Management) +C.S.R.
(Corporate Social Responsibility) quality.

The Quarterly Quality Report

An ASQ Analysis of Quality & Customer Satisfaction With
Manufacturing Non-Durable Goods
Commentary by Jack West, American Society for Quality
November 14, 2006

Pepsi Uncaps a Lead While Coke Fizzles

PepsiCo’s leadership in perceived quality may be attributable in part to its stronger

market presence in diet sodas and waters, which may have a perceived quality edge
due to consumer perceptions that they are healthier than carbonated sodas. Pepsi has been
quicker to tap into American consumers’ growing concerns with obesity and switch to lower-cal
beverages. Their flagging appetite for sodas cuts into demand for Coke’s product lines. PepsiCo
derives 23 percent of its worldwide profit from carbonated beverages compared to about 85
percent at Coca-Cola.
Pepsi’s new CEO says she intends to stick to the health and wellness approach of her
Predecessor, an approach that emphasizes diet soft drinks and various forms of bottled Waters.
Bottled water, the fastest-growing segment of the beverage business, has
Become a $10 billion market worldwide; growth is especially strong in the United states. Although
Coca-Cola dominates the soft-drink world with a global market share of 36 Percent (PepsiCo is a
close second at 35 percent, followed by Cadbury Schweppes at17 percent), PepsiCo is number 1
in the noncarbonated soft drinks category.

Customer Satisfaction Survey &Analysis

Survey area - Lahore & surrounding

Introduction

59
 Customer satisfaction measurement is systematic process for collecting customer
data (e.g. survey, audits etc.) analyzing these data to make it in to actionable information, driving
results throughout an organization and implementing satisfaction improvement plan. Thus,
Customer Satisfaction Measurement (CSM) is a management information system that
continuously captures the voice of the through the assessment of performance from the
customer’s point of view.

For making the measurement of customer satisfaction we have tried to use following
methods.

Such measurement could be made by using any of the following methods:

 Surveys
 Formal and informal feedback from customers
 Use of customer account data
 Complaints

However, survey is the most common method.

CSM will enable us to

 Understand how customers perceive your organization and whether your performance
meets their expectation.
 Identify PFI’s (priorities for improvement) areas where improvement in performance will
produce the greatest gain in customer satisfaction
 Set goals for service improvement and monitor progress against a customer satisfaction
index
 Benchmark your performance against other organization
 Increase profits through improved customer loyalty and goodwill

We tride to measure and monitor feedback of customer satisfaction & dissatisfaction

which enable us to know about PepsiCo’s strong points and as well as weak points. It
has address conformance to requirements, meeting, needs, and expectations of
customers, as well as price and delivery of product.

We used the following steps for survey-

60
 Obtain Top Management

Determine Survey Objectives

Exploratory Research

Data collection

Design of Questionnaire

Actual Survey

Data Refining and Analysis

Recommendation and Implementation Plan

Fig. Survey
methodology

 Obtain top management

Wehaddone our survey work under the guidance of
Mr. ArunKumar pandey(T.D.M.),MR. Kamleshyadav (C.E.),&
Mr. Santosh Kumar,(C.E.) PepsiCo Lahore. Thesetop management guided us and asked
for identified the problems. it is essential that the survey project have to management buy-
in. top management should agree with the purpose of the research and understand what
actions will result from the survey. One way of
Ensuring management buy-in is to involve management in the design and construction of
the survey.

Determine survey objective

Firstly we had determined our objective. Our main survey was:

61
  Market position Pepsi product in Lahore
 Customer expectation
 Problem of customer regarding to getting product
 Purity of vesicooler.
 Product display
 To find out the market strategy used by our competitors
 Relationship between PepsiCo persons with shopkeeper(customer)
 Claim of customers

Exploratory Research

We have done intensive research of the soft drink market in Lahore. Our research is based
on the customers demand and availability of product in the market. We have also used the
data provided by Deepak traders and our Customer Executive Mr. Kamleshyadav.

Data Collection

We collected the data from our distributer. we also collected the data
provided by shopkeepers. Shopkeepers provide us there total per day sales as well as
seasonal sales. We have also tried to collect data on our survey topic from various sources
without the approval of the top management

Design of Questionnaire

Our basic principles and purpose of asking question was:

 Will the respondent have the information / knowledge to answer it?

 Will the respondent understand the question?
 Is the respondent likely to give a true answer?
 Will the question bias the response?

We have always keeping in the mind, the value and norms of our organization to customers

Type of questions
We asked to customer mainly following types of question:

Closed question
For the statistical analysis, we asked closed question. The main purpose of asking closed
question was to link it with rating scale to qualify the strength of the response.

Open question
We asked questions when we doesn’t want to leave the respondent in any way we used to
asked these questions at the exploratory stage rather than at the survey stage

62
 Purpose of questions
Whether the questions are open or closed, they can be used for different purposes, usually to find
out about respondents’ behavior, to understand their attitudes, or to gather details about them for
classification purposes.

Behavioral questions
Behavioral questions are about what the respondent does or has done in the past. They are both
factual and tangible which usually make them easier to answer so they tend to be placed at the
beginning of questionnaires.

Attitudinal questions
Although behavioral questions can ask the respondent to dig deeply into his or her memory,
attitudinal questions usually require more thought and more decision making and should therefore
follow rater than precede behavioral questions. This gives the respondent some time to think
about the issues involved. It also provides an opportunity to us to build rapport – very useful later
when we want the respondent to make the effort to give proper consideration to any difficult
attitudinal questions.
Customer satisfaction measurement is primarily concerned with attitudinal questions. Attitudes
towards the product and services and selecting the supplier, attitudes about the performance of
the product and supplier and, most difficult of all, attitudes about the image of the supplier, will all
come within this category

Data Refining and Analysis

Data collected through the questionnaires are first checked for incompleteness, inconsistencies,
and inaccuracies.

Structuring the questionnaire according to business processes, makes it possible to structure the
data analysis in a managerially meaningful way. The analysis determines links between the
following components:

Dimension (Sub process)

Process

Overall satisfaction
Fig. hierarchy of dimensions

Customers’ satisfaction level with the dimensions (sub processes) of a process affects their
satisfaction level with that process. Likewise, customers’ satisfaction level with the various
processes influences their satisfaction level with the firm overall.

Using the statistical models for predicting satisfaction, it is then possible to estimate the relative
importance of the various processes in predicting satisfaction with the firm, and the relative
importance of the dimensions in predicting process satisfaction. These importance weights can
then be related to performance, as measured by the percent satisfied. Charting the importance
63
 and performance information can help provide preliminary ideas about where resources should
be allocated.

Recommendation and implementation plan

Based on analysis of data regarding sub-processes dimensions factors processes, and overall,
one can formulate important recommendations which could be considered for implementation.
For example, one could work out process wise satisfaction levels. Take the case of metering
process in a distribution company, say, which has been found to have a low score in satisfaction,
the concerned department may look for possible causes and then draw up an implementation
plan.
Conclusion

Monitoring of Customer Satisfaction is now very important for a distribution company, as it will
lead to better customer experience and thereby goodwill. A quality survey is required to be
undertaken periodically.

Product available in Lahore and its price

Pepsi, Mountain Dew, Merinda, 7up,

Product quantity price
24*200 ml RGB 168/caret
24*300 ml RGB 214/caret
24*600 ml 454/cartoon
09*2000 ml 459/cartoon
24*my can 330/cartoon

Slice

24*250 ml RGB214/ caret

24*500 ml 500/ cartoon

Aqiafina

12*1000ml 120/cartoon

Lehar soda

64
 24*500 ml 260/cartoon

Tropicana

Scheme given by Pepsi Company in the month of July&august to Outlets

1. 2 bottle 200ml free on 300ml/ Pepsi, Dew, 7up Mirinda

2. 2 bottle 600ml free on 2000ml/ Pepsi, Dew, 7up Mirinda
3. 2 bottle 500ml free on 500ml Lehar soda

COMPARISION BETWEENPEPSIPRODUCTS &COKE PRODUCTS

Pepsi Coca-cola,Thumps up
Nimbooz,Mirinda Limca
Aquafina Kinley
Mountain Dew, 7Up Sprite
Slice Maaza
Mirinda Orange Fanta

65
MARKET SHARE OF PEPSI /COKE IN QUANTITY WISE IN LAHORE

66
 % Market Share

80%

60%
Coke
40%
Pepsi
``
20%

0%
200ml 300ml 600ml 2000ml

Coke 45% 63% 47% 51%

Pepsi 55% 37% 53% 49%

PPSI
47% COKE
COKE
PEPSI
53%

COMPETITIVE MARKET SHARE

67
Cola
Pepsi = 45%
Coke = 35%
Thumsup = 20%
Orange

20%
MIRINDA =
45%
75%

35%
25%

Pepsi Coke Thumsup

75%
FANTA = 25%

Fanta Mirinda
Lemon
7UP = 50%
SPRIT = 50%

Mango

50% 50%

Sprit 7UP

Slice = 45%
68
 45%

55%

Maaza Slice

Maaza = 55%

Can
PEPSI = 55%
COKE = 45%

45%

55%

Coke Pepsi

Water
Aquafina = 80%

69
 20%

80%

Kinley Aquafina

Kinley = 20%

Pepsi VS Coca-Cola

Pepsi ads often focused on celebrities, choosing Pepsi over Coke, supporting Pepsi's
positioning as "The Choice of a New Generation." In 1975, Pepsi began showing people
doing blind taste tests called Pepsi Challenge in which they preferred one product over the
other, and then they began hiring more and more popular spokespersons to promote their
products. Coke dispenser flown aboard the Space Shuttle Endeavour in 1996

In the late 1990s, Pepsi launched its most successful long-term strategy of the Cola Wars,
Pepsi Stuff. Consumers were invited to "Drink Pepsi, Get Stuff" and collect Pepsi Points on
billions of packages and cups. They could redeem the points for free Pepsi lifestyle
merchandise. After researching and testing the program for over two years to ensure that it
resonated with consumers, Pepsi launched Pepsi Stuff, which was an instant success. Tens
of millions of consumers participated. Pepsi outperformed Coke during the summer of the
Atlanta Olympics - held in Coke's hometown - where Coke was a lead sponsor of the Games.
70
 Due to its success, the program was expanded to include Mountain Dew, and into Pepsi's
international markets worldwide. The company continued to run the program for many years,
continually innovating with new features each year.The Pepsi Stuff promotion became the
subject of a lawsuit. In one of the many commercials, Pepsi showed a young man in the
cockpit of a Harrier Jump Jet. Below ran the caption "Harrier Jet: 7 million Pepsi Points."
There was a mechanism for buying additional Pepsi Points to complete a Pepsi Stuff order.
John Leonard, of Seattle, Washington, sent in a Pepsi Stuff request with the maximum
amount of points and a check for over $700,000US to make up for the extra points he
needed. Pepsi did not accept the request and Leonard filed suit. The judgment was that a
reasonable person viewing the commercial would realize that Pepsi was not, in fact, offering
a Harrier Jet. In response to the suit, Pepsi added the words "Just Kidding" under the portion
of the commercial featuring the jet as well as changing the "price" to 700 million Pepsi points.

In 1985, Coca-Cola and Pepsi were launched into space aboard the Space Shuttle
Challenger on STS-51-F. The companies had designed special cans (officially the
Carbonated Beverage Dispenser Evaluation payload or CBDE) to test packaging and
dispensing techniques for use in zero G conditions. The experiment was classified a failure
by the shuttle crew, primarily due to the lack of both refrigeration and gravity.[citation needed]. A
Coca-Cola fountain dispenser (officially a Fluids Generic Bioprocessing Apparatus-2 or
FGBA-2) was developed for use on the Space Shuttle Endeavour as a "a test bed to
determine if carbonated beverages can be produced from separately stored carbon dioxide,
water and flavored syrups and determine if the resulting fluids can be made available for
consumption without bubble nucleation and resulting foam formation". The unit flew in 1996
aboard STS-77 and held 1.65 liters each of Coca-Cola and Diet Coke.

Second Cola War

During the 1990s, a "second cola war" was reported in the United Kingdom. This time it was
due to the launch of Virgin Cola, as well as Sainsbury’s brand Classic, which, unlike most store
brand colas, was designed to look like a top product worthy of competition. For a few years
both colas were competitive with Coca-Cola and Pepsi; at one point Coca-Cola even sued
Sainsbury's claiming the design of the Classic Cola can was too similar to Coke's. However,
today, both Virgin and Classic Cola are far behind the two major brands. The high-publicity
marketing also continued into the 1990s. In 1997 the Spice Girls (who were at the peak of
their fame) signed a multi-million pound sponsorship deal with Pepsi. They starred in three
Pepsi commercials, released two limited edition singles with Pepsi; "Move Over" and "Step
To Me", featured on Pepsi packaging and performed two live concerts in Istanbul organized
and sponsored by the company.

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72
 TECHNIQUES FOR SALES PROMOTION

1) Product availability
2) 100% rich

3) Good relation

4) Warm display

5) Cold display

6) Proper singer

7) Rich at one time

8) Fulfill your commitment

Product availability
It means all the flavor of Pepsi should be available at one time. By which customer can able to
give any flavor to the consumer and can give the satisfaction.

1) 100% rich - it means. Company top management always should always worry about the
quality of all the brands. If any organization wants to service in the market and wants to better
image then quality play a very integral role so for sales promotion quality should by 100% good.

2) Good relation – company’s executive, sales man should make good relation from dealer,
whole seller and retailer. There is only 20% brand loyal person. Remaining 80% impulse selling is
going on. It means in india in cold drinks line which ever brand consumer see first of all that brand
will demanded by user. The selling is high

3) That particular brand. So i want to say that if. The executive relation will goods from
dealer, whole seller retailer. Then he will arrange coke brands on front of shop by which coke
selling will improve.

4) Worm display
5) Cold display

6) Proper singer
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 Proper singer also plays a key role in more selling .

7) Fulfill your commitment

If executive promise to the customer of any type. Then executive shovel fulfill his
promise, such as. Executive say that to the retailer if you will sell 1000 carrot in this month then
i will give you a coke fridge. If retailer has sold out 1000 carrot in the month then executive
should fulfill his commitment. By this manner selling will also improve.

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Strength
1. Company image : It is a reputable organization and is well known all over the world.
Perception of producing a high quality products.

2. Quality conscious:
They maintain a high quality as a Pepsi-cola international collect sample from its differ
production facilities and send them for lab test in Tokyo.

3. Good relation with franchise:

Throughout its history it has good relation with franchisers working in different areas of the
world where they have the production facilities.
4. Market share:
It has a highest market share more then 52% in India and leading a far step head from its
competitors.
5. Large number of diversity businesses
This is also its main strength as it has diversity such as.

a. Pepsi beverages

b. Pepsi foods

c. Pepsi restaurants

7. High tech culture:

The whole culture and business operating environment at Pepsi-cola-West Asia has quick
access to a centralized data base on they use computer and business tolls for analysis and
quick decision making
8. Sponsorship
They mainly use celebrities is there advertisement complaining like.

1. Sharukh khan
2. Katrina kaif
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 3. Amitabh bachhan
4. M.S.Dhoni

Also sponsor social activities programmed like music and games.

Weakness

1. Decline in test: During the last year, it was published in financial post that there has
been big complaints from the customers with regard to the bad taste that they experienced
during the span of six months. Some people in Lahore also claimed that Pepsi is sweeter than
coke.
2. Short term approach: They have a lack of emphasis on this in their advertising such
as currently when they losses the bid for official drink in the 96 world cup. They started a
campaign in which they highlight the factor such as “Nothing official about it”.
3. Very little advertisement in small towns Lahore.
4. Not good reward system in small town as Lahore for its customers.
5. There is the claim of shortage in peek season on Lahore.
6. There is the claim from customers that the damage bottles has not been changed by
distributer at time.
7. Lack of product display in Lahore

THREATS
1. Imitators: They also have a problem of imitations as receives complaints from customers
that they find take product in disguised of Pepsi’s product.
2. Government regulation: They face problems if government taxes on them which force them
to raise price of this product.
3. Corporate shortage problem: Again this is also serious threat as if supplier is unhappy with
the company. He may reduce the supply and exploit the company. This action will surely
affect the production process.

OPPORTUNITIES:

1. Increase production: as almost in all over the world growth rate is increasing which in term
increases the demand of the products and necessities and especially in Asia the market is
growing at a faster rate as compare to other countries. So they have to attract new entrants.
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2. Changing social trend : As in all over the world people are rushing towards faster, It provide
the company a factor to capture this fast moving market with its take away product.

3. Diversification: They may enter in garments business in order to promote their brand name,
by marketing supports cloths for players which represent their name by winning their
clothes.

CONCLUSION
Pepsi has a long-standing commitment to protecting the consumer whose trust and confidence in its

products in the bedrock of its success. In order to ensure that Consumers stay inform about the

global quality of all Pepsi product sold in the world, Pepsi product carry a quality assurance seal on

them. Pepsi commitment is to deliver sustained growth, through empowered people, acting with

responsibility and building trust.

RECOMMENDATIONS

 Company should prepare future plan for maintain selling in market. Because company

competitor can increase and can capture the market.

 Company should provide special benefit to the retailer. Otherwise his interest will go

down from cold drinks.

 Present time competition is not high in this line because it’s competitor is only Coka-

Cola. So that company can do compromise with Coka-Cola and both can increase

product’s M.R.P.
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 Company should appointed a special representative for listening retailer’s problem and

solve them. He can also find out some shortcomings of salesman & others.

 In case of cold drinks selling mostly depend on retailer. So that his satisfaction needed.

 Test of all flavors like, Pepsi, 7up, Mountain dew, merinda, slice and Tropicana should

also good.

 Defected goods should be returnable or changeable.

 Good execution is a main factor in more selling good execution improves selling.

 Sales executive & salesman relation and good behavior also provide effective

guidelines in increasing selling.

 For more selling company person should fulfill his commitment.

 In Cold Drinks line brand loyalty found only 20%. So that

 which will be visible that will salable

 Reference:
 Imtaiz M Malik Production Manager

 Shoukat M Assistant Manager Advertising and Key Accounting

 Chaudhry A Mohammad General Manager

 Survey and TV Commercials

 Magazine

 Internet site

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  www.pepsico.com
 www.cocacocla.com
 www.pepsicoindia.com
 www.wikipedia.com
 www.yahooimagesearcher.com
 www.ask.com
 www.hoover.com
 www.wikianswer.com
 www.Google.com

 Magazine
 Business today
 4ps
 Business and economy
 Business world
 Harvard business review
 News paper
 The economic times
 Business stander
 Consulted book
 MARKETING MANAGEMENT
A South Asian Perspective

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