The project report is based on finding the major differences between Pepsi and Coke. The business project has been completed in about for 12 weeks. These 12 weeks are utilised for research and finding out the market strategies implemented by Pepsi and Coke. These companies are major market players in soft drink industry having core supremacy over other soft drinks.

Pepsi Cola was founded in 1898 by a Pharmacist known as Dr Caleb Bradham. However Coca-Cola was founded a bit earlier than Pepsi which could be one of the reasons of its dominance. It was invented and patented in the year of 1886 by Dr John Pemberton. It was the first soft drink made out of a fountain beverage by mixing Coca-Cola syrup with carbonated water. Later on it was registered as a trademark in 1893 and arrived in soft drinks market. The first bottled and distribution process was initiated in 1899. The core competencies of both the soft drinks and their threats are also included in this report.

The Coca-Cola Company is leading and producing more than 3000 products to more than 200 countries. They are having extremely recognizable brands all around the globe. The bottling system of both Pepsi & coke is one of the supreme potency in maximising there sales volume. Coca-Cola have produced soft drinks with largest distribution network over the world wide than which is followed by Pepsi on number second. According to Michael Porter there are three generic business strategies. Coca Cola follows the Differentiation Strategy .They spends enormous amounts of money in advertising to differentiate and create a unique image for their products. They have a variety of products to suit everyone’s preference. However, Pepsi stands at second position.

To find out the precise and correct data to support this project, Akok and Ibrahim went out to conduct face-to-face surveys. This is done by distributing questionnaires. The questionnaires were distributed in Highpoint Shopping centre and Dandenong plaza.

2.0    Purpose

The purpose of this research project is based on the dominance of Coca Cola over Pepsi. The reason for this hypothesis is that the members of this project observed various distinctions between these two products. Some of the vital points can be illustrated as:

The price of Coke in Melbourne is double the price of Pepsi in supermarkets such as Safeway and Coles. Taking this fact into account, it can be stated that Coca Cola is practising much more enhanced marketing strategies than Pepsi that is why its market share is high. Even though the price is high, Coke still manages to remain on top in soft drinks industry.

3.0       Specific Research Questions

The research questions are designed to find out the critical aspects of this business project. Hence the questions which are designed are aligned with the findings of primary data.

1. Is it possible for Pepsi to acquire Coke’s customers? How?
2. Coke sells more, is it the taste or any other hidden factor?
3. Pepsi sells cheaper than Coke, does it mean it’s a non-reputable brand?

4.         Does Pepsi & Coke need advertisements to sell? Why? Who does it better?

4.0    Methodology

There are a number of different types of research. These include action research, case study research, experimental research and survey research. For our research we decided to use survey research because they are easy to distribute to people, the questions are designed so that answers from individual interviews can be added together to produce results which apply to the whole sample and they are efficient and flexible.

4.1       Sampling Method

As discussed above the sampling method which is selected for this business project is the distribution of questionnaires. The questionnaires have been distributed at highpoint shopping centre by Akok and Ibrahim distributed them at Dandenong plaza. This area is more elaborated in timeline which is mentioned further in this report. The major advantage of questionnaire is that it is précised and correct to some extent, however the surveys which are done on email are not that effective.

4.2       Sample Size

 

 

The sample size for this project was 60-70 questionnaires. The questionnaires which are collected for this project are 67. 34 questionnaires were completed by Akok at highpoint shopping centre. The remaining 33 questionnaires were collected by Ibrahim at Dandenong plaza from people for our primary research. This data and information helps us in making decisions. Some interesting facts which came out through primary research are included to support the business project.

4.3       Location      

 

 

This primary research was collected in Dandenong Plaza and Highpoint Shopping centre at Safeway and Coles and plus small supermarkets. As the tasks of gathering primary data was divided in two of us. Thus it was done separately in two different locations. This was decided to enable variety of data and information and near where each of us dwelling, which would help to reduce time and cost. So Ibrahim did a survey in Eastern Suburb at shopping centre mentioned above, and Stephen did the same survey in western suburb listed above.

4.4       Time

 

 

The entire time for this whole project is 12 weeks. The first four weeks are exploited for refining topics for the research proposal and gathering information to support the argument which is mentioned in the research proposal. Furthermore from week 5 to week 7 are used to prepare questionnaire and completion of literature review. Week 8 and 9 are utilised for collection of questionnaires and analysis of primary data. Week 10, 11 and 12 are used to prepare final report, present the whole project and the submission of the final project.

5.0    Limitations

The limitations of this project include the information which is collected as primary data via distribution of questionnaires. It can be stated that the people who are filling the questionnaire might be in hurry and they might fill the information which could be irrelevant. Thus the information which is collected can’t be guaranteed as hundred percent true.

 

 

 

 

6.0     Gantt Chart for Research Schedule

Weeks /Topics

Wk 1

Wk 2

Wk 3

Wk 4

Wk 5

Wk 6

Wk 7

Wk 8

Wk 9

Wk 10

Wk 11

Wk 12

Research topics

Refine topics

Gather information for proposal

Research proposal

Prepare and design questionnaire

Collect data on literature review

Literature review

Collect data questionnaire in certain location

Analyse collected data of questionnaire

Prepare report

Presentation of Findings

Research Report

 

6.1       Gantt Chart Explanation

The Gantt chart is created to achieve the goals and complete the tasks of this business project on the given allocated time limit. The entire project is completed in the total span of twelve weeks. The above chart depicts that the first four weeks are utilised for research proposal. The research proposal was comprised of refining the topic, gather information for proposal and presenting the proposal. The period from week five to week seven includes the preparation of questionnaire for primary data and completion of literature review. Week 8 and week 9 were assigned for the survey in different locations, and analysis of the data which were collected through the questionnaires. The last 3 weeks which are 10, 11 and 12 were devoted for the completion of this report and making PowerPoint slides to present the complete business project.

 

 

 

 

 

 

 

7.0    Timeline for Primary Research

Week	Monday16/5/113pm-4pm	Tuesday17/5/111pm-2pm	Wednesday18/5/1110am-11am	Thursday19/5/1111am-1pm	Friday20/5/112pm-3pm	Saturday21/5/11Day Off	Sunday22/5/11Day Off
Ibrahim conducted survey at Dandenong Plaza	Ibrahim conducted survey at Dandenong Plaza	Ibrahim conducted survey at Dandenong Plaza	Akok conducted survey at Highpoint S/centre	Akok conducted survey at Highpoint S/centre
Week	Monday23/5/112pm-3pm	Tuesday24/5/1111am-1pm	Wednesday25/5/1110am-11am	Thursday26/5/111pm-2pm	Friday27/5/113pm-4pm	Saturday28/5/11Day Off	Sunday29/5/11Day Off
Akok conducted survey at Highpoint S/centre	Akok conducted survey at Highpoint S/centre	Akok conducted survey at Highpoint S/centre	Ibrahim conducted survey at Dandenong Plaza	Ibrahim conducted survey at Dandenong Plaza

 

7.1       Table Explanation

This business project is the mutual work of both the members of the group. Ibrahim and Akok divided there tasks to ensure that the project should be completed before the given time. The above table show the days of week 8 and 9 in which the survey was conducted at different places such as Dandenong plaza and highpoint shopping centre to get effective results. Moreover the time is provided in the table to have an idea of foot traffic of the shopping centres. In week 8 from Monday till Wednesday, Ibrahim did survey at Dandenong plaza at different timings. The rest of the two days were covered by Akok and he did survey at highpoint shopping centre. In the following week from Monday to Wednesday, Akok conducted research by distributing questionnaires at highpoint shopping centre. The remaining two days were covered by Ibrahim at Dandenong plaza. The major purpose of doing this survey at different places, different timings and different days of the week is that the information and data which is collected should be random and essential for this business project.

8.0    Literature Review

Literature review is a study of various articles and journals which are co-related with the research project. These articles are based on the information which is relevant to support the topic of the business project. It is predominantly a study of different authors and their point of view on particular subject.

Introduction

Any organisation, for profit or not for profit; must have the strategic planning in customer retention and marketing strategy. Because it is important, to build a strong and influencing customer to develop, love with endless needs on the same brands and loyalty products or services. This is to make customer like the products or services most than other in the market. To handle this situation of many rivals in market, the company must have it own way of managing customer service to focus on product differentiation and keep observing how much and for how long they are buying the same brands. It is always very easy when making decision to reflect what customer demands on price, quantity and others relevant. Thinking of a taste of product is what customer possibilities and their expectation levels are resolved.

From this article, it is discussed an influence of price and quality increase level of customer satisfaction. According to (Kotler 1994) points out that the key to customer retention is just a customer satisfaction, is much on price and quality, is agreed to develop customer wants to spend more. The market environment is very complex that organization must always get it right. Maynes (1985) states that there are three shopping environment such as:

I.        The overabundance of brands in the marketplace leads to information overload

II.        The technical complexity of many products market quality assessment virtually impossible the average consumer

III.        The urbanization of our society creates an environment where there are too many stores offering similar products or services.

Therefore, market information is to be communicated very effectively and respectively and selectively. If communication were inaccuracy would cause low motivation and result to low productivity. Customer expectation meets with what went out to stay in place. So information should be clear and accurate to keep customer trust and loyalty in business.

Second to it “the drivers of customer retention” are mentioned that, the customer loyalty and affect behaviour are suggested to be understood in the evaluation, attitude and intention (Oliver 1999) showed what drive customer toward product and services provided. So when everything reaches customer need level is defined as overall customer satisfaction at performance update (Johnson and Fornell 1991) when business set up necessary price and provides hearty products or services. This organization always advantage from customers help bring their friends and other to know products. Customer should drive the business’s efficiency and effectiveness. If clear objectives are set up with eyeing on both organization and corporate social responsibility to be evaluated, tested weakness and threats including external environment are adapted to change to success.

Third article mentioned some successful and failure to economy growth in the business markets are unknown and known. The unintentional poor service is stated that occur what the management team provide wrong information to influence worker to do task. Reward without useful method for incentives given out. Having recruited unskilled staffs and mixing jobs would leave many gaps according to (Loveman 1998, Chase and Stewart 1993, Hauser et al. 1994 Chu and Desai 1995, Chu et al. 1998). These situations there are needs to be addressed in relation to human resource management development. To recruit the rights employees or provide the training when it clear understood the needs for training that might be done in organization or outside by hiring specialist or expertise to do so.

Some intentional poor services:

In switching costs when management brought increases to make up products price or services while there are perfectly market completion. Failing to estimate or check the costs if organization want to recruit or train staff. Thus is done to increase performance must be planned first. After knowing that will work well as result toward profit improvement, according to the “service profit chain” (Heskett et al. 1997, Loveman 1998, Kamakura et al. 2002).

 

Misleading pricing:

It deals with making customer believe that business advertising campaigner or marketers information are different at store charging customer full price on which was advertised with discounted 25 % off. Even though customer complaint to managers and staffs about mistaken charged is not well addressed to get customer understand why it happen. That way because was wrong decision made by store manager to get extra amount left to his or her pocket.

Customer relationship management:

It is major key that keep business life, if business has no customer or buyers then will close down. Otherwise may move to else where there are no same products or services existing (new market). The technology and globalisations brought many opportunities that some will sell the same products and make it price cheap to gain more customers. New innovation is changing the whole world everyday there is new comer in to the market. As the online buy and sell changing the young generation life style as well as market strategy and older model are changing the new one.

Conclusion

All articles mentioned in this literature review are primarily chosen for this project. The chosen literature has enlightened the theme of this project. It is focused on the significance of brand loyalty, customer retention and satisfaction. The theories of modern advertising are also been discussed in this literature.

 

 

9.0    Secondary data

The secondary data is the information which is collected from various other channels. It is also known as second hand information. This information can be found from internet, newspaper, journals to support the whole argument. Some of the secondary data which is collected is illustrated below with the help of diagrams.

Figure 9.1: Market share

Reference: http://www.accuval.net/insights/industryinsights/detail.php?ID=142

Explanation:

The figure mentioned above depicts the market share of different soft drinks brands. Pepsi and Coke own various other brands as well. Pepsi Cola owns Mountain dew, diet Pepsi and Diet Mountain dew. The Pie chart above shows the market share of Pepsi that is 15%, Mountain Dew is 10%, and Diet Mountain dew is 3%. However on the other hand Coke’s market share is much higher. According to the secondary data collected, Coke’s Market share is 26%, Diet Coke 15%, Sprite 8% and Fanta carry 3% of market share.

Figure 9.2: Comparison

Reference: http://money.cnn.com/2002/05/10/pf/investing/q_cola/index.htm

Explanation:

The above diagram is mentioned to identify the vital differences between Pepsi and Coke. The diagram is based on the breakdown of financial and product aspects of both the organisations. The Stock price of Coke is stated at $56.50 and Pepsi at $52.06. Thus it can be analysed that the market value of Coke is higher than that of Pepsi. Furthermore the diagram has included the market value of both the companies. It is fairly visible that Coke carries market value of $140.4 billion and Pepsi is far behind with having the value of only $92.0 billion. Hence it can be stated that Coke has major dominance over Pepsi which is also proven with the help of primary data collection.

Figure 9.3: Media Usage 2010

              

Reference: http://www.mediamonitors.com/weeklyspots/2011/01-03-2011/

Explanation:

The above mentioned pie chart shows the media usage of Pepsi and Coke in the year 2010. Coca-Cola has 92,800 employees and they produced revenues of $30.99 billion with the net income of $6.82 billion. On the other hand Pepsi has double of Coke’s employees with around 203,000. PepsiCo produced revenues of $43.23 with the net income of $5.95 billion. The major aspect to identify from this information is that Pepsi have double employees than Coke but still they lack in sharing equal market share. In 2010 both the companies launched advertising campaigns to increase there market share. The radio advertising of both the companies is much more similar. Pepsi leads with 293,304 spots where Coke ran 232,890 spots on radio. On TV advertising Coke is far behind than Pepsi. Pepsi ran 85,283 ads in the last 12 months where Coke ran only 52,183 spots on TV. Hence it can be stated that Pepsi is working hard on advertising to clutch the market share.

 

 

10.0  Primary data findings

Primary data is the particular information composed by the individual who is doing the research. It can be obtained through scientific trials, case studies, factual experiments and randomized controlled studies. This information can be analysed by other experts who may decide to test the legitimacy of the data by repeating the same experiments. There are various types of collecting primary data which are observation, focus Group and Personal interviews (one-on-one). In this project questionnaires are used to find out the information in form of surveys.

10.1    Collection of Primary data

The collection of primary is done through the questionnaires. Akok and Ibrahim went to different locations conduct the survey. Altogether there are around 67 Questionnaires which are collected. The results and there explanations are briefed below:

10.2    Analysis of Primary Data

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Questions	Options	Responses
Section A (Tell us about yourselfJ)
What is your gender?	Male	40
	Female	27
Your age group	Under 20	12
	20-40	41
	Over 40	14
Your range of income?	Under $ 25,000 PA	26
	$25,001 – $75,000	33
	More than $75,000	08
Are you a brand loyal person?	Yes I am	43
	No, Not really	24
If you your desired brand of soft drink is	Buy any Brand	24
Not available, what would you do?	Suggest them to have it next time	15
	I will save my money instead of wasting it on any other brand	10
	Try elsewhere	18
Section B (Cola and advertisements)
Do you drink Pepsi or Coke?	Yes	64
	No	03
Do you drink only Pepsi or Coca-Cola brands?	Only Pepsi Brands	17
	Only Coke brands	21
	Doesn’t matter, I drink any	28
Who’s advertising style appeals more to	Pepsi	22
You?	Coca-cola	35
	Neither	09
Section C (What’s vital to you, how do you consume?)
Does advertising motivate you to buy a	Yes	42
Product?	No	24
Would an advertisement with your personal	Yes	36
Idols affect your choice of cola product?	No	30
When do you consume soft drinks?	During or after food	41
	While at work	30