1.

INTRODUCTION The Customer Survey undertaken for this project was conducted to establish
a comparative study between Coca-Cola and Pepsi-Cola, and necessary data collected from
nearby food joints, serving Coca-Cola and Pepsi. The areas selected were in the city of
Chandigarh, India. It is possible that the responses to similar surveys conducted in other cities
and countries, may be at variance with those obtained from Chandigarh. In the first place,
advertising is still the number one communication tool for businesses promotion. Large scale
changes in technology has required companies to implement other promotional strategies,
other than traditional marketing communication tools. However, as a consequence of long-
term changes, such as the increase of a larger and more diverse range of media, as well as
the arrival of new technologies, particularly the Internet, consumers have become better
informed than ever, and as a result, some of the traditional advertising methods are no
longer as effective as they used to be (www.economist.com). The overall objective of this
study paper is to gain a deeper understanding of different international and local factors
affecting consumer preferences in the local market scenario. Specifically, the intention is to
explore the effect of international well-recognized advertising campaigns have on consumers
buying needs and preferences. The study also aims to establish whether or not there is a
relationship between the influences of the above mentioned factors on the | 9

2. 10. consumers choice of homogenous products. The research has been limited to the cola
drink industry, rather than the entire soft-drink industry. Although consumer perceptions on
international brands marketing strategies have been studied, the focus of the investigation
will be on Coca-Colas and Pepsis advertisement and sponsorship as well as the marketing of
their brands. Instead, firms have increasingly employed other marketing tools, such as
corporate sponsorship of sports, arts and cultural events to name a few (Ruth, 2003).
Sponsorship is claimed to be the worlds fastest growing form of marketing, and in 2001,
worldwide spending was estimated to be as much as $24.6 billion. Moreover, sponsorship
activities are applied with the belief that companies can enter international markets and
appeal to local consumer preferences (Dolphin, 2003). This promotional tool has proved to be
successful in reaching a large global audience, and seeing as consumer behaviour differs
greatly in preferences and product choices, it is apparent why sponsorship has outperformed
other marketing methods (http://geoff.cox.free.fr). As a result of globalization, the use of
advertisement across cultural borders has grown immensely, and while one expert claims
that the average person is daily exposed to 1,600 advertisements, another expert estimates
the total number to be as much as 5,000 a day(Armstrong, 2005) , from billboards to
bumper stickers to logos on caps and T-shirts (www.thegredecompany.com). Seeing as
advertising clutter has increased tremendously and is more intense than ever, it is vital that
companies differentiate themselves from competitors by creating even more powerful,
entertaining, and innovative advertisement messages. However, this has proven to be very
costly, especially within highly competitive product markets, such as the soft-drink industry,
 which requires higher advertising budgets just to stay even with competitors. Examples of
such companies that spend billions of dollars on advertising in order to stay key players in
their industry are The Coca-Cola Company and PepsiCo (http://business.enotes.com).Not
only are Coca-Cola and Pepsi dominant market leaders on the worldwide beverage market,
but they are also two of the most notable and widely sold commercial | 10

3. 11. brands in the world (http://en.wikipedia.org), and annually spend billions of dollars on
advertising campaigns. In 2004, Coca-Colas worldwide advertising budget exceeded $1.5
billion, while Pepsis advertising expenditure totalled $1.3 billion (www.mind-
advertising.com). Coca- Colas advertising has always been celebrated globally, and introduced
its first advertising theme in the early 1900's and has since seen plenty of popular themes
that have become recognised worldwide (www.coke.com). Today, Coca-Cola depends heavily
on images of happiness and togetherness, tradition and nationalism, whereas Pepsi relies
more on the appeal of celebrities, popular music, and young people in their television
commercials (www.geocities.com). Pepsi (stylized in lowercase as Pepsi, formerly stylized in
uppercase as PEPSI) is a carbonated soft drink that is produced and manufactured by
PepsiCo. Created and developed in 1893 and introduced as Brad's Drink, it was renamed as
Pepsi-Cola on August 28, 1898, then to Pepsi in 1961. Coca-Cola is a carbonated soft drink
sold in stores, restaurants, and vending machines throughout the world. It is produced by The
Coca-Cola Company of Atlanta, Georgia, and is often referred to simply as Coke. Originally
intended as a patent medicine when it was invented in the late 19th century by John
Pemberton, Coca-Cola was bought out by businessman Asa Griggs Candler, whose marketing
tactics led Coke to its dominance of the world soft-drink market throughout the 20th century.
The company produces concentrate, which is then sold to licensed Coca-Cola bottlers
throughout the world. The bottlers, who hold territorially exclusive contracts with the
company, produce finished product in cans and bottles from the concentrate in combination
with filtered water and sweeteners. The bottlers then sell, distribute and merchandise Coca-
Cola to retail stores and vending machines. The Coca-Cola Company also sells concentrate for
soda fountains to major restaurants and food service distributors. The Coca-Cola Company
has, on occasion, introduced other cola drinks under the Coke brand name. The most
common of these is Diet Coke, with others including Caffeine-Free Coca-Cola, Diet Coke | 11

4. 12. Caffeine-Free, Coca-Cola Cherry, Coca-Cola Zero, Coca-Cola Vanilla, and special versions
with lemon, lime or coffee. In 2013, Coke products could be found in over 200 countries
worldwide, with consumers downing more than 1.8 billion company beverage servings each
day. Based on Interbrand's best global brand 2011, Coca-Cola was the world's most valuable
brand. History Of Coca-Cola 19TH CENTURY HISTORICAL ORIGINS Eagle Drug and Chemical
House, Columbus, Georgia Believed to be the first coupon ever, this ticket for a free glass of
Coca-Cola was first distributed in 1888 to help promote the drink. By 1913, the company had
redeemed 8.5 million tickets. | 12
5. 13. This Coca-Cola advertisement from 1943 is still displayed in the small city of Minden,
Louisiana. Colonel John Pemberton was wounded in the Civil War, became addicted to
morphine, and began a quest to find a substitute to the dangerous opiate. The prototype
Coca-Cola recipe was formulated at Pemberton's Eagle Drug and Chemical House, a drugstore
in Columbus, Georgia, originally as a coca wine. He may have been inspired by the formidable
success of Vin Mariani, a European coca wine. In 1885, Pemberton registered his French Wine
Coca nerve tonic. In 1886, when Atlanta and Fulton County passed prohibition legislation,
Pemberton responded by developing Coca-Cola, essentially a nonalcoholic version of French
Wine Coca. The first sales were at Jacob's Pharmacy in Atlanta, Georgia, on May 8, 1886. It
was initially sold as a patent medicine for five cents a glass at soda fountains, which were
popular in the United States at the time due to the belief that carbonated water was good for
the health. Pemberton claimed Coca-Cola cured many diseases, including morphine
addiction, dyspepsia, neurasthenia, headache, and impotence. Pemberton ran the first
advertisement for the beverage on May 29 of the same year in the Atlanta Journal. By 1888,
three versions of Coca-Cola sold by three separate businesses were on the market. A
copartnership had been formed on January 14, 1888 between Pemberton and four Atlanta
businessmen: J.C. Mayfield, A.O. Murphey; C.O. Mullahy and E.H. Bloodworth. Not codified
by any signed document, a verbal statement given by Asa Candler years later asserted under
testimony that he had acquired a stake in Pemberton's company as early as 1887. John
Pemberton declared that the | 13

6. 14. name "Coca-Cola" belonged to his son, Charley, but the other two manufacturers could
continue to use the formula. Charley Pemberton's record of control over the "Coca-Cola"
name was the underlying factor that allowed for him to participate as a major shareholder in
the March 1888 Coca-Cola Company incorporation filing made in his father's place. More so
for Candler especially, Charley's position holding exclusive control over the "Coca-Cola" name
continued to be a thorn in his side. Asa Candler's oldest son, Charles Howard Candler,
authored a book in 1950 published by Emory University. In this definitive biography about his
father, Candler specifically states: "...on April 14, 1888, the young druggist [Asa Griggs
Candler] purchased a one-third interest in the formula of an almost completely unknown
proprietary elixir known as Coca-Cola." Old German Coca-Cola bottle opener. The deal was
actually between John Pemberton's son Charley and Walker, Candler & Co. - with John
Pemberton acting as cosigner for his son. For $50 down and $500 in 30 days, Walker, Candler
& Co. obtained all of the one-third interest in the Coca-Cola Company that Charley held, all
while Charley still held on to the name. After the April 14 deal, on April 17, 1888, one-half of
the Walker/Dozier interest shares were acquired by Candler for an additional $750. | 14

7. 15. The Coca-Cola Company In 1892, Candler set out to incorporate a second company; "The
Coca-Cola Company" (the current corporation). When Candler had the earliest records of the
"Coca-Cola Company" burned in 1910, the action was claimed to have been made during a
 move to new corporation offices around this time. After Candler had gained a better foothold
of Coca-Cola in April 1888, he nevertheless was forced to sell the beverage he produced with
the recipe he had under the names "Yum Yum" and "Koke". This was while Charley
Pemberton was selling the elixir, although a cruder mixture, under the name "Coca-Cola", all
with his father's blessing. After both names failed to catch on for Candler, by the summer of
1888, the Atlanta pharmacist was quite anxious to establish a firmer legal claim to Coca- Cola,
and hoped he could force his two competitors, Walker and Dozier, completely out of the
business, as well. When Dr. John Stith Pemberton suddenly died on August 16, 1888, Asa G.
Candler now sought to move swiftly forward to attain his vision of taking full control of the
whole Coca-Cola operation. Charley Pemberton, an alcoholic, was the one obstacle who
unnerved Asa Candler more than anyone else. Candler is said to have quickly maneuvered to
purchase the exclusive rights to the name "Coca- Cola" from Pemberton's son Charley right
after Dr. Pemberton's death. One of several stories was that Candler bought the title to the
name from Charley's mother for $300; approaching her at Dr. | 15

8. 16. Pemberton's funeral. Eventually, Charley Pemberton was found on June 23, 1894,
unconscious, with a stick of opium by his side. Ten days later, Charley died at Atlanta's Grady
Hospital at the age of 40. In Charles Howard Candler's 1950 book about his father, he stated:
"On August 30th {1888}, he {Asa Candler} became sole proprietor of Coca-Cola, a fact which
was stated on letterheads, invoice blanks and advertising copy." With this action on August
30, 1888, Candler's sole control became technically all true. Candler had negotiated with
Margaret Dozier and her brother Woolfolk Walker a full payment amounting to $1,000, which
all agreed Candler could pay off with a series of notes over a specified time span. By May 1,
1889, Candler was now claiming full ownership of the Coca-Cola beverage, with a total
investment outlay by Candler for the drink enterprise over the years amounting to $2,300. In
1914, Margaret Dozier, as co-owner of the original Coca-Cola Company in 1888, came
forward to claim that her signature on the 1888 Coca-Cola Company bill of sale had been
forged. Subsequent analysis of certain similar transfer documents had also indicated John
Pemberton's signature was most likely a forgery, as well, which some accounts claim was
precipitated by his son Charley. Origins of Bottling The first bottling of Coca-Cola occurred in
Vicksburg, Mississippi, at the Biedenharn Candy Company in 1891. The proprietor of the
bottling works was Joseph A. Biedenharn. The original bottles were Biedenharn bottles, very
different from the much later hobble-skirt design of 1915 now so familiar. It was then a few
years later that two entrepreneurs from Chattanooga, Tennessee, namely; Benjamin F.
Thomas and Joseph B. Whitehead, proposed the idea of bottling and were so persuasive that
| 16

9. 17. Candler signed a contract giving them control of the procedure for only one dollar.
Candler never collected his dollar, but in 1899, Chattanooga became the site of the first Coca-
Cola bottling company. Candler remained very content just selling his company's syrup. The
 loosely termed contract proved to be problematic for The Coca-Cola Company for decades to
come. Legal matters were not helped by the decision of the bottlers to subcontract to other
companies, effectively becoming parent bottlers. The first outdoor wall advertisement that
promoted the Coca-Cola drink was painted in 1894 in Cartersville, Georgia. Cola syrup is sold
as an over-the-counter dietary supplement for upset stomach. 20th Century Landmarks 21th
Century - New Coke The Las Vegas Strip World of Coca- Cola museum in 2003 | 17

10. 18. Geographic spread Since it announced its intention to begin distribution in Burma in June
2012, Coca-Cola has been officially available in every country in the world except Cuba and
North Korea. However, it is reported to be available in both countries as a grey import. Coca-
Cola has been a point of legal discussion in the Middle East. In the early 20th century, a fatwa
was created in Egypt to discuss the question of "whether Muslims were permitted to drink
Coca-Cola and Pepsi cola." The fatwa states: "According to the Muslim Hanefite, Shafi'ite,
etc., the rule in Islamic law of forbidding or allowing foods and beverages is based on the
presumption that such things are permitted unless it can be shown that they are forbidden
on the basis of the Qur'an." The Muslim jurists stated that, unless the Qu'ran specifically
prohibits the consumption of a particular product, it is permissible to consume. Another
clause was discussed, whereby the same rules apply if a person is unaware of the condition
or ingredients of the item in question. Brand portfolio This is a list of variants of Coca-Cola
introduced around the world. In addition to the caffeine-free version of the original,
additional fruit flavors have been included over the years. Not included here are versions of
Diet Coke and Coca-Cola Zero; variant versions of those no-calorie colas can be found at their
respective articles. | 18

11. 19. TABLE 1.1 Name Launched Discontinued Notes Coca-Cola 1886 The original version of
Coca-Cola. Caffeine-Free Coca-Cola 1983 The caffeine free version of Coca-Cola. Coca-Cola
Cherry 1985 Was available in Canada starting in 1996. Called "Cherry Coca-Cola (Cherry
Coke)" in North America until 2006. New Coke/"Coca- Cola II" 1985 2002 Was still available in
Yap and American Samoa Coca-Cola with Lemon 2001 2005 Available in: Australia, American
Samoa, Austria, Belgium, Brazil, China, Denmark, Federation of Bosnia and Herzegovina,
Finland, France, Germany, Hong Kong, Iceland, Korea, Luxembourg, Macau, Malaysia,
Mongolia, Netherlands, New Caledonia, New Zealand, Runion, Singapore, Spain,
Switzerland, Taiwan, Tunisia, United Kingdom, United States, and West Bank-Gaza Coca-Cola
Vanilla 2002; 2007; 2013 2005; Available in: Austria, Australia, China, Czech Republic, Finland,
Germany, Hong Kong, New Zealand, Malaysia, Slovakia, South-Africa, Sweden, United
Kingdom and United States. It was reintroduced in June 2007 by popular demand. Coca-Cola
with Lime 2005 Available in Belgium, Netherlands, Singapore, Canada, the United Kingdom,
and the United States. Coca-Cola Raspberry June 2005 End of 2005 Was only available in New
Zealand. Currently available in the United States in Coca-Cola Freestyle fountain since 2009.
Coca-Cola Black Cherry Vanilla 2006 Middle of 2007 Was replaced by Vanilla Coke in June
 2007 Coca-Cola Blk 2006 Beginning of 2008 Only available in the United States, France,
Canada, Czech Republic, Bosnia and Herzegovina, Bulgaria and Lithuania Coca-Cola Citra 2006
Only available in Bosnia and Herzegovina, New Zealand and Japan. Coca-Cola Orange 2007
Was available in the United Kingdom and Gibraltar for a limited time. In Germany, Austria and
Switzerland it's sold under the label Mezzo Mix. Currently available in Coca- Cola Freestyle
fountain outlets in the United States since 2009. Coca-Cola Life 2013 Only available in
Argentina. | 19

12. 20. Logo Design The Coca-Cola logo was created by John Pemberton's bookkeeper, Frank
Mason Robinson, in 1885. Robinson came up with the name and chose the logo's distinctive
cursive script. The typeface used, known as Spencerian script, was developed in the mid-19th
century and was the dominant form of formal handwriting in the United States during that
period. Robinson also played a significant role in early Coca-Cola advertising. His promotional
suggestions to Pemberton included giving away thousands of free drink coupons and
plastering the city of Atlanta with publicity banners and streetcar signs. Various types of
models The classic Coca-Cola contour bottle design Earl R. Dean's original 1915 concept
drawing of the contour Coca-Cola bottle | 20

13. 21. The prototype never made it to production since its middle diameter was larger than its
base, making it unstable on conveyor belts. Two Chinese Coke bottles, a 200 ml glass bottle,
which is becoming less common, and a 300 ml plastic bottle that is now widely available.
Major Share Holders Of Coca-Cola TABLE 1.2 Breakdown % of Shares Held by All Insider and
5% Owners: 5% % of Shares Held by Institutional & Mutual Fund Owners: 62% % of Float Held
by Institutional & Mutual Fund Owners: 65% Number of Institutions Holding Shares: 1561
Major Direct Holders (Forms 3 & 4) Holder Shares Reported DILLER BARRY N/A Apr 27, 2012
| 21

14. 22. KENT AHMET MUHTAR 251,618 Feb 18, 2014 FINAN IRIAL 327,366 Feb 18, 2014 FAYARD
GARY P 146,510 Feb 18, 2014 REYES JOSE OCTAVIO 71,564 Feb 18, 2014 History Of Pepsi
Pepsi was first introduced as "Brad's Drink" in New Bern, North Carolina, United States, in
1893 by Caleb Bradham, who made it at his drugstore where the drink was sold. It was later
labeled Pepsi Cola, named after the digestive enzyme pepsin and kola nuts used in the recipe.
Bradham sought to create a fountain drink that was delicious and would aid in digestion and
boost energy. Plaque at 256 Middle Street, New Bern, NC In 1903, Bradham moved the
bottling of Pepsi-Cola from his drugstore to a rented warehouse. That year, Bradham sold
7,968 gallons of syrup. The next year, Pepsi was sold in six-ounce bottles, and sales increased
to 19,848 gallons. In 1909, automobile race pioneer Barney Oldfield was the first celebrity to
endorse Pepsi-Cola, describing it as "A bully drink...refreshing, invigorating, a fine bracer
before a race." The advertising theme "Delicious and Healthful" was then used over the next
two | 22
15. 23. decades. In 1926, Pepsi received its first logo redesign since the original design of 1905. In
1929, the logo was changed again. In 1931, at the depth of the Great Depression, the Pepsi-
Cola Company entered bankruptcy in large part due to financial losses incurred by
speculating on wildly fluctuating sugar prices as a result of World War I. Assets were sold and
Roy C. Megargel bought the Pepsi trademark. Megargel was unsuccessful, and soon Pepsi's
assets were purchased by Charles Guth, the President of Loft, Inc. Loft was a candy
manufacturer with retail stores that contained soda fountains. He sought to replace Coca-
Cola at his stores' fountains after Coke refused to give him a discount on syrup. Guth then
had Loft's chemists reformulate the Pepsi-Cola syrup formula. On three separate occasions
between 1922 and 1933, The Coca-Cola Company was offered the opportunity to purchase
the Pepsi-Cola company, and it declined on each occasion. Rise During the Great Depression,
Pepsi gained popularity following the introduction in 1936 of a 12- ounce bottle. With a radio
advertising campaign featuring the jingle "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", arranged in such a
way that the jingle never ends. Pepsi encouraged price-watching consumers to switch,
obliquely referring to the Coca-Cola standard of 6.5 ounces per bottle for the price of five
cents (a nickel), instead of the 12 ounces Pepsi sold at the same price. Coming at a time of
economic crisis, the campaign succeeded in boosting Pepsi's status. From 1936 to 1938,
Pepsi-Cola's profits doubled. | 23

16. 24. Pepsi's success under Guth came while the Loft Candy business was faltering. Since he
had initially used Loft's finances and facilities to establish the new Pepsi success, the near-
bankrupt Loft Company sued Guth for possession of the Pepsi-Cola company. A long legal
battle, Guth v. Loft, then ensued, with the case reaching the Delaware Supreme Court and
ultimately ending in a loss for Guth. Marketing Pepsi logo (19731998) In 1987, the font was
modified slightly to a more rounded version which was used until 1998. This logo is now used
for Pepsi Throwback | 24

17. 25. Pepsi logo (20032008). Pepsi Wild Cherry continued to use this design through March
2010. Pepsi ONE continued to use this design until mid-2012. This logo is still in use in India
and other international markets. The original version had the Pepsi wording on the top left of
the Pepsi Globe. In 2007, the Pepsi wording was moved to the bottom of the globe. From the
1930s through the late 1950s, "Pepsi-Cola Hits The Spot" was the most commonly used
slogan in the days of old radio, classic motion pictures, and later television. Its jingle
(conceived in the days when Pepsi cost only five cents) was used in many different forms with
different lyrics. With the rise of radio, Pepsi utilized the services of a young, up-and-coming
actress named Polly Bergen to promote products, oftentimes lending her singing talents to
the classic "...Hits The Spot" jingle. Film actress Joan Crawford, after marrying then Pepsi-Cola
President Alfred N. Steele became a spokesperson for Pepsi, appearing in commercials,
television specials and televised beauty ants on behalf of the company. Crawford also had
 images of the soft drink placed prominently in several of her later films. When Steele died in
1959 Crawford was appointed to the Board of Directors of Pepsi- Cola, a position she held
until 1973, although she was not a board member of the larger PepsiCo, created in 1965. |
25

18. 26. The Buffalo Bisons, an American Hockey League team, were sponsored by Pepsi-Cola in its
later years; the team adopted the beverage's red, white and blue color scheme along with a
modification of the Pepsi logo (with the word "Buffalo" in place of the Pepsi-Cola wordmark).
The Bisons ceased operations in 1970 (making way for the Buffalo Sabres). Through the
intervening decades, there have been many different Pepsi theme songs sung on television
by a variety of artists, from Joanie Summers to the Jacksons to Britney Spears. 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
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 its 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 its 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 its entire brand, simultaneously introducing a
new logo and a minimalist label design. The redesign was comparable to Coca-Cola's earlier
simplification of its can and bottle designs. Pepsi also teamed up with YouTube to produce its
first daily entertainment show called Poptub. This show deals with pop culture, internet viral
videos, and celebrity gossip. | 26

19. 27. 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. It also has the
naming rights to Pepsi Center, an indoor sports facility in Denver, Colorado. In 1997, after his
sponsorship with Coca-Cola ended, NASCAR driver Jeff Gordon signed a long term contract
with Pepsi, and he drives with the Pepsi logos on his car with various paint schemes for about
2 races each year, usually a darker paint scheme during nighttime races. Pepsi has remained
as one of his sponsors ever since. Pepsi has also sponsored the NFL Rookie of the Year award
since 2002. Pepsi also has sponsorship deals in international cricket teams. The Pakistan
cricket team is 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. In July 2009, Pepsi started marketing itself
as Pecsi 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. In October 2008, Pepsi announced
that it would be redesigning its logo and re-branding many of its products by early 2009. In
2009, Pepsi, Diet Pepsi and Pepsi Max began using all lower-case fonts for name brands, and
Diet Pepsi Max was re-branded as Pepsi Max. The brand's blue and red globe trademark
became a series of "smiles", with the central white band arcing at different angles depending
on the product until 2010. Pepsi released this logo in U.S. in late 2008, and later it was
released in 2009 in Canada (the first country outside of the United States for Pepsi's new
logo), Brazil, | 27

20. 28. Bolivia, Guatemala, Nicaragua, Honduras, El Salvador, Colombia, Argentina, Puerto Rico,
Costa Rica, Panama, Chile, Dominican Republic, the Philippines and Australia. In the rest of
the world the new logo has been released in 2010. The old logo is still used in several markets
internationally, and has been phased out most recently in France and Mexico. The UK started
to use the new Pepsi logo on cans in an order different from the US can. Starting in mid-2010,
all Pepsi variants, regular, diet, and Pepsi Max, have started using only the medium-sized
"smile" Pepsi Globe. Pepsi and Pepsi Max cans and bottles in Australia now carry the localized
version of the new Pepsi Logo. The word Pepsi and the logo are in the new style, while the
word "Max" is still in the previous style. Pepsi Wild Cherry finally received the 2008 Pepsi
design in March 2010. In 2011, for New York Fashion Week, Diet Pepsi introduced a "skinny"
can that is taller and has been described as a "sassier" version of the traditional can that
Pepsi says was made in "celebration of beautiful, confident women". The company's equating
of "skinny" and "beautiful" and "confident" is drawing criticism from brand critics, consumers
who do not back the "skinny is better" ethos, and the National Eating Disorders Association,
which said that it takes offense to the can and the company's "thoughtless and irresponsible"
comments. PepsiCo Inc. is a Fashion Week sponsor. This new can was made available to
consumers nationwide in March. In April 2011, Pepsi announced that customers will be able
to buy a complete stranger a soda at a new "social" vending machine, and even record a
video that the stranger would see when they pick up the gift. In March 2012, Pepsi
introduced Pepsi Next, a cola with half the calories of regular Pepsi. In March 2013, Pepsi for
the first time in 17 years reshaped its 20-ounce bottle. | 28

21. 29. In November 2013, Pepsi issued an apology on their official Swedish Facebook for using
pictures of Cristiano Ronaldo as a voodoo doll in various scenes before the Sweden v Portugal
2014 FIFA World Cup playoff game. Pepsis Rivalry with Coca-Cola According to Consumer
Reports, in the 1970s, the rivalry continued to heat up the market. Pepsi conducted blind
taste tests in stores, in what was called the "Pepsi Challenge". These tests suggested that
more consumers preferred the taste of Pepsi (which is believed to have more lemon oil, and
less orange oil, and uses vanillin rather than vanilla) to Coke. The sales of Pepsi started to
 climb, and Pepsi kicked off the "Challenge" across the nation. This became known as the
"Cola Wars". In 1985, The Coca-Cola Company, amid much publicity, changed its formula. The
theory has been advanced that New Coke, as the reformulated drink came to be known, was
invented specifically in response to the Pepsi Challenge. However, a consumer backlash led to
Coca-Cola quickly reintroducing the original formula as Coke "Classic". According to Beverage
Digest's 2008 report on carbonated soft drinks, PepsiCo's U.S. market share is 30.8 percent,
while The Coca-Cola Company's is 42.7 percent.[24] Coca-Cola outsells Pepsi in most parts of
the U.S., notable exceptions being central Appalachia, North Dakota, and Utah. In the city of
Buffalo, New York, Pepsi outsells Coca-Cola by a two-to-one margin. Overall, Coca-Cola
continues to outsell Pepsi in almost all areas of the world. However, exceptions include
Oman; India; Saudi Arabia; Pakistan (Pepsi has been a dominant sponsor of the Pakistan
cricket team since the 1990s); the Dominican Republic; Guatemala; the Canadian provinces of
Quebec, Newfoundland and Labrador, Nova Scotia, and Prince Edward Island; and Northern
Ontario. | 29

22. 30. Pepsi had long been the drink of Canadian Francophones and it continues to hold its
dominance by relying on local Qubcois celebrities (especially Claude Meunier, of La Petite
Vie fame) to sell its product. PepsiCo introduced the Quebec slogan "here, it's Pepsi" (Ici, c'est
Pepsi) in response to Coca- Cola ads proclaiming "Around the world, it's Coke" (Partout dans
le monde, c'est Coke). As of 2012, Pepsi is the third most popular carbonated drink in India
with a 15% market share, behind Sprite and Thums Up. In comparison, Coca-Cola is the
fourth most popular carbonated drink occupying a mere 8.8% of the Indian market share. By
most accounts, Coca-Cola was India's leading soft drink until 1977 when it left India after a
new government ordered The Coca-Cola Company to turn over its secret formula for Coke
and dilute its stake in its Indian unit as required by the Foreign Exchange Regulation Act
(FERA). In 1988, PepsiCo gained entry to India by creating a joint venture with the Punjab
government-owned Punjab Agro Industrial Corporation (PAIC) and Voltas India Limited. This
joint venture marketed and sold Lehar Pepsi until 1991 when the use of foreign brands was
allowed; PepsiCo bought out its partners and ended the joint venture in 1994. In 1993, The
Coca- Cola Company returned in pursuance of India's Liberalization policy. In Russia, Pepsi
initially had a larger market share than Coke but it was undercut once the Cold War ended. In
1972, PepsiCo Company struck a barter agreement with the then government of the Soviet
Union, in which PepsiCo was granted exportation and Western marketing rights to
Stolichnaya vodka in exchange for importation and Soviet marketing of Pepsi-Cola. This
exchange led to Pepsi-Cola being the first foreign product sanctioned for sale in the U.S.S.R.
Reminiscent of the way that Coca-Cola became a cultural icon and its global spread spawned
words like "coca colonization", Pepsi-Cola and its relation to the Soviet system turned it into
an icon. In the early 1990s, the term "Pepsi-stroika" began appearing as a pun on
"perestroika", the reform policy of | 30
23. 31. the Soviet Union under Mikhail Gorbachev. Critics viewed the policy as an attempt to
usher in Western products in deals there with the old elites. Pepsi, as one of the first
American products in the Soviet Union, became a symbol of that relationship and the Soviet
policy. This was reflected in Russian author Victor Pelevin's book "Generation P". In 1989,
Billy Joel mentioned the rivalry between the two companies in the song "We Didnt Start the
Fire". The line "Rock & Roller Cola Wars" refers to Pepsi and Coke's usage of various musicians
in advertising campaigns. Coke used Paula Abdul, while Pepsi used Michael Jackson. Both
companies then competed to get other musicians to advertise its beverages. In 1992,
following the dissolution of the Soviet Union, Coca-Cola was introduced to the Russian
market. As it came to be associated with the new system, and Pepsi to the old, Coca-Cola
rapidly captured a significant market share that might otherwise have required years to
achieve. By July 2005, Coca-Cola enjoyed a market share of 19.4 percent, followed by Pepsi
with 13 percent. Pepsi did not sell soft drinks in Israel until 1991. Many Israelis and some
American Jewish organizations attributed Pepsi's previous reluctance to do battle to the Arab
boycott. Pepsi, which has a large and lucrative business in the Arab world, denied that, saying
that economic, rather than political, reasons kept it out of Israel. SHAREHOLDERS PepsiCo
(symbol: PEP) shares are traded principally on the New York Stock Exchange in the United
States. The company is also listed on the Amsterdam, Chicago, Swiss and Tokyo stock
exchanges. PepsiCo has consistently paid cash dividends since the corporation was founded.
| 31

24. 32. Various Collaborations of Coca-Cola and Pepsi Coca-Cola has more collaboration with
popular fast-food restaurants worldwide but Pepsi has focused on acquiring bigger but fewer
deals. It just won the battle with Coca-Cola as they signed a huge deal with Buffalo Wild
Wings. The deal underscores the harsh realities of the $32.8 billion. | 32

25. 33. PepsiCo's Mountain Dew drinks may also be a good fit for Buffalo Wild Wings, which
provides customers with TV screens to watch sporting events. The restaurant chain hopes to
benefit from Pepsi's tie-ups with the NFL and Major League Baseball. In India, Pepsi and
Coca-Cola have almost equal tie-ups. Various Takeovers of Coca-Cola and Pepsi PepsiCo has
also taken over Giants like Lays, Tropicana, Quaker and Gatorade. This keeps PepsiCo back on
track in the battle with Coca-Cola. Coca-Cola has taken over Giants like Thums Up, Limca from
Parle in 1993 for US$60 million. Coca- Cola re-entered India that year after a prolonged
absence, spurring a three-way Cola War with Thums Up and Pepsi. | 33

26. 34. Pepsi Paradox: The Sweet Sorrow Coke won the cola wars because great taste takes more
than a single sip. The inspired Pepsi Challenge marketing campaign of the 1980s was the
introduction to one of the fundamentals of scientific inquiry for many students of marketing:
the double-blind experiment. In a world beset with soft drink advertising, how could you
really know which soda you liked best? Clearly what made sense was to put prejudice and
 branding aside, don a blindfold, and focus on pure flavor. It was one of the greatest marketing
coups of all time. In the late 1970s and early 1980s, Pepsi steadily gained on Coke in terms of
market share. Characters in the ads always picked Pepsi, of course, but so did most people
who tried it in real lifethe sweeter taste was more appealing. By 1983, Pepsi was outselling
Coke in supermarkets, leaving Coke dependent on its larger infrastructure of soda machines
and fast food tie-ins to preserve its lead. That was a success in its own right. But even better,
Pepsi forced Coke into an infamous business blunder. Faced with eroding market share, Coke
began a series of its own internal taste tests aimed at developing a superior product. Thus
was born the dread New Coke, a sweeter cola reformulated to best both Pepsi and the classic
formulation of Coke in blind taste tests. | 34

27. 35. The backlash was fast and furious, with over 400,000 letters of complaint pouring in to
the company. Despite declining market share, Coke was still by far the market leader over
Pepsiand the companys millions of loyal customers werent looking for a new flavor. Pepsi
recorded the fastest year-on-year sales growth in the companys history during New Cokes
first month, while a consortium of Coca-Cola bottlers decided to sue the company for
changing the product. But then Coca-Colas senior leadership did something tough: They
admitted that they were wrong. And they executed a strategic pivot thats kept them on top
of the rivalry ever since. They reintroduced the original formula under the name Coca-Cola
Classic and sold it in parallel with New Coke for a while. Over time, the new Coke was
phased out, and Coca-Cola Classic became just, well, Coke once againa product so
culturally iconic that across a significant swath of the United States it serves as a generic term
for what decent people call soda and Midwesterners call pop. For the past 25 years, Coke
advertising has focused on the brand first and foremost. The soda is a shared experience
thats supposed to remind you of friendship, family, adorable bears, and other fuzzy
associations. And its worked great. According to industry statistics compiled by Beverage
Digest, Coke owns 17 percent of the American market for carbonated soft drinks. The next
most popular choice is Diet Coke with 9.4 percent. Pepsi languishes in third place at 8.9
percent. Though its the flagship brand of a diverse beverage and snack company with over
$65 billion in revenue, Pepsi is a definite loser in the popularity sweepstakes. Pepsi is a
quintessential example of a challenger brand thats seeking an edge against a dominant,
iconic firm. Marketing has often emphasized the idea of Pepsi as newer or more youthful
the choice of a new generationas a way of turning its second-place status into an
advantage. But Pepsi | 35

28. 36. works as such a great example of a challenge because despite decades of efforts, none of
its different slogans or logos or celebrity endorsements has ever put it in first place. Its a
frustrating place for the company to be, because the Pepsi Challenge wasnt just an ad
gimmick. It really is true that blind taste tests suggest that people like it better than Coke. Yet
people keep buying more Coke. One theory of this Pepsi Paradox, described by Lone Frank
 in Scientific American, is that we should take the Pepsi Challenge at face value. Cokes victory
is a triumph of branding over flavor, and a clear sign that consumer companies should invest
lots of money in advertising. Researchers intrigued by the paradox have suggested that Cokes
ads actually rewire the human brain. When Read Montague of Baylor College Medicine
performed a version of the Pepsi Challenge with subjects hooked up to an fMRI machine, he
found something interesting. In blind taste tests, most people preferred Pepsi, and Pepsi was
associated with a higher level of activity in an area of the brain known as the ventral
putamen, which helps us evaluate different flavors. By contrast, in a nonblind test, Coke was
more popular and was also associated with increased activity in the medial prefrontal cortex.
Montagues interpretation: This prefrontal activity represented the higher-thinking functions
of the brain associating the soda with ad campaigns and, in effect, overriding the taste buds.
But perhaps this is wrong. Felix Salmon notes that in blind taste tests of wine, people almost
invariably prefer sweeter varieties. This hardly means sweeter wines are always betterand
Pepsi is sweeter than Coke. On this view its actually Pepsi that scored the marketing triumph,
by convincing people that a blind taste test represents the true mark of soda flavor. Likewise,
the idea that Coke triumphs because of ads rather than flavor has trouble explaining the
failure of New Coke. New Coke had the same ads behind it as old Coke, but was specifically
engineered to beat Pepsi in taste tests. | 36

29. 37. CONTENTS Literature Review Consumer Preferences Target Group Brand
Perceived Quality Sponsorship Individual factors Celebrity Endorsement Overview of
Market Past & Present Milestones & Products (Three Levels of Product) Competitor
Capabilities Matrix Different Competitor Analysis Place & Price Promotion SWOT
Analysis Brand Equity Segmenting Consumer Markets Advertising Campaign Ansoff
Models | 37

30. 38. Current & Future Strategies LITERATURE REVIEW Contemporary Marketing Review Vol.
1 was written by Seyyedeh Mehrsa Hashemi (Malaysia), Yasaman Darabi Darabkhani
(Candidate of MBA, Management and Science University, Faculty of Management, Malaysia)
and Behrooz Ahanijan (Candidate of MBA, Management and Science University, Faculty of
Management, Malaysia). This market research was done to compare OPERATION STRATEGIES
FOR COCA-COLA VS PEPSI COMPANIES TO ATTRACT THEIR CUSTOMERS. In the paragraphs
below, their findings have been summarized. Consumer Preferences The consumer market
amounts to a total of 6.3 billion people, and thus there is great demand for an enormous
variety of goods and services, especially as consumers differ from one another in that of age,
gender, income, education level, and tastes. The reason why consumers buy what they do is
often deeply rooted in their minds, consequently consumers do not truly know what affects
their purchases as ninety-five percent of the thought, emotion, and learning [that drive our
purchases] occur in the unconscious mind- that is without our awareness (Armstrong,
2005).Consumers purchase process is affected by a number of different factors, some of
 which marketers cannot control, such as cultural, social, personal, and psychological factors.
However, these factors must be taken into consideration in order to reach target consumers
effectively. Cultural factors | 38

31. 39. Each cultural group can be divided into groups consisting of people with common life
experiences and situations, also known as subcultures (Kotler et al. 2005), such as nationality,
racial groups, religion, and geographical areas. The third cultural factor is social class, which is
constituted upon among other variables: Occupation, income, education, and wealth
(Blackwell, 2001). Social factors Social grouping that is collected of family, communal roles
and position, and small groups. Some of these groups have a direct influence on a person, i.e.
membership groups, groups that a person can belong to (Kotler et al. 2005), and reference
groups which serve as direct (face-to-face) or not direct evaluation points or suggestion in
shaping attitudes or beliefs of persons (Armstrong et al. 2005, p. 148). However, some
people are affected by groups in which they do not belong to; these reference groups include
inspirational groups, groups that a person desires to belong to and a fans admiration for an
idol, etc. (Ibid).Finally, a wife, husband or a child have strong influences on a consumer and
thus the family is the most vital consumer buying organisation in society (Kotler et al. 2005).
Personal factors A persons lifestyle forms his/her world and the way he/she decides to act,
thus a persons activities, interests, and opinions constitute their lifestyle, as well as affecting
the choice of products (Armstrong et al. 2005). Moreover, all people are individual; hence
have a unique personality of different characteristics, which is often portrayed with traits,
such as self-confidence, dominance, sociability, autonomy, defensiveness, adaptability, and
aggressiveness (Blackwell et al. 2001). Psychological factors | 39

32. 40. As a matter of fact; when people experience new things, changes take place in their
behaviour, i.e. they learn new things when they take action. As a result, beliefs and attitudes
are acquired and hence affect the buying behaviour (Armstrong et al. 2005). Target Group
Companies must identify those parts of the market that they can best serve, and thus build
the right relationship with the right customers that this is also known as target marketing and
is the evaluation process marketplace segments pleasant appearance and choosing one or
more segments to go into (Armstrong et al. 2005). Age Seeing as consumers needs and
interests for products vary depending on age, companies employ age segmentation, offering
dissimilar goods or by means of diverse marketing approaches for altered age
groups(Armstrong, 2005). Blackwell et al. (2001) divide the dissimilar age groups into the
following: children, teenagers, young adults, and baby boomers, thus the thesis will
concentrate on teenagers, young adults, and baby boomers. Teenagers have a variety of
needs, such as a need for belonging, independence, approval, and responsibility, as well as
having the need for experimentation (Solomon, Bamossy, Askegaard, & Hogg, 2007).
Teenagers are increasingly given the task of buying products for the family since they not only
have more spare time but also enjoy shopping more than their parents do. As a result,
 marketers are targeting their ads primarily at teenagers. In order to gain teenagers attention
more effectively, advertising campaigns must be honest, have clear messages, and use
humour. Moreover, teenagers tend to be fickle and are likely to switch brand preference
quicker than any other age group, as they have a high need to be accepted by their friends
(Blackwell et al. | 40

33. 41. 2001). Finally, teenagers are easier targets, because they have grown up in a culture of
pure consumerism. Because of this, they are way more tuned into media because there is so
much more media to be tuned into (Bush, Martin, & Bush, 2004).Young adults who they
are18 to 34-year-olds are worry about grown up issues, and live their lives for the
moment rather than for tomorrow (Ibid). Brand Brand image takes place when brand
associations held in the mind of consumers are conveyed onto a consumers perception
about a brand. These associations can either be developed from direct experience with the
product, from the information communicated by the company, or from previous associations
held about the company and origin, etc (Martinez & Pina, 2003). Brand Equity A set of
assets and liabilities to a brands name and symbol that adds to or subtracts from the value
provided by a product or service to a firm and/or a firms customers(Aaker, 2008). These
assets and liabilities can be grouped into four categories: brand loyalty, brand awareness,
perceived quality, and brand associations. Brand Loyalty A form of repeat purchasing
behaviour reflecting a conscious decision to continue buying the same brand is brand loyalty
(Solomon, et al., 2007). Moreover, in order for brand loyalty to take place, customers must
have a positive attitude towards a brand, as well as being involved in repeated buying.
Brand Awareness Brand awareness entails that recognition is communicated onto a brand,
which allows consumers to identify with the brand product, and thus providing companies
with constant competitive advantage | 41

34. 42. (Aaker, 2008). For low involvement products, products bought frequently and with a
minimum of thought and effort (buseco.monash, edu.au), awareness can affect a
consumers buying decision through a sense of familiarity, whereas for high involvement
products, brand awareness provides consumers with a sense of presence and assurance
(Aaker, 2008). Brand Association Brand association can either be linked directly or indirectly
with a customers thought about a brand. Those associations that have the clearest
significance are built upon product attributes, such as physical product characteristics and
non-material product characteristics (Armstrong et al. 2005), and customer benefits - the
desirable consequences consumers seek when buying and using products and brands (Peter
& cop., 1994) which provide customers with a motive to buy the product, consequently
resulting in brand loyalty (Aaker, 2008) Brand positioning Positioning refers to consumers
perception of a brand as compared with that of competitors brands, that is, the mental
image that a brand, or the company as a whole, evokes (CZINKOTA, DICKSON,& DUNNE,
2001). Moreover, researchers claim that positioning can provide benefits to the consumer
 through a set of different product attributes (Albaum, 2002). Thus, companies must position
their brands/products clearly in the minds of the target consumers that this can be done
through the positioning on product attributes, however, companies must bear in mind that
these attributes are easily copied by competitors. More specifically, consumers are often not
interested in attributes as such, but are rather concerned with what the attributes will
actually do for them (Armstrong et al. 2005). Another way in which marketers can position
brands is by associating a brand with a name that encompasses pleasing and desired benefits
(Peter & cop., 1994). However, strong brands go beyond | 42

35. 43. attribute or benefit positioning, and instead are positioned on strong beliefs and values.
(Armstrong et al. 2005). Perceived Quality Perceived quality can be defined as the
customers perception of the overall quality or superiority of a product or service with
respect to its intended purpose, relative to alternatives (Aaker, 2008). Perceived quality is
initially a consumers perception about a product, and thus is a tangible overall opinion about
a brand. Nevertheless, this feeling is usually based upon fundamental dimensions, such as
product features and performance. The language used in advertising campaigns When
advertising across borders, advertisers have to decide upon whether or not to use the native
language in the campaign. There are several reasons that drive companies to use foreign
languages in advertisements, such as financial- and image-related reasons. Advertising costs
are reduced when using existing foreign language television commercials rather than
producing new commercials into the native language. Furthermore, in some situations, a
products image benefits from using a foreign language as it is more effective (Wang, 2006).
In non-English speaking countries, English is the most frequently used foreign language in
advertisements. A global marketing company can deploy an English-language advertisement
in numerous countries worldwide seeing as most countries regard English as their first foreign
language. Additionally, as a translation of English to a local language is not absolutely
required, as money is saved when using English in a global campaign (Ibid). | 43

36. 44. Sponsorship Previous research has shown that although various definitions of
sponsorship exist, they all certify that sponsorship is primarily a commercial activity, where
the sponsoring company attains the right to promote an association with the sponsored
object in return for benefit (Polonsky, 2001). More specifically, (Javalgi, 1994)claimed that
sponsorship is the underwriting of a special event to support corporate objectives by
enhancing corporate image, increasing awareness of brands, or directly stimulating sales of
products and services. Sponsorship activities are used for a number of reasons, but three of
the most common objectives comprehend overall corporate communications, which include
building and strengthening brand awareness, brand image, and corporate image(Gwinner,
1999). More specifically, strategies that are aimed at increasing brand recognition, are
typically employed using a wide range of advertising tools which are designed to expose the
sponsoring brand to as many potential customers as possible(Cornwell, 2001). However,
 certain factors such as the sponsor industry and company size influence the choice of
sponsorship activity and thus the objectives vary between companies. For example,
manufacturers often look for extensive publicity opportunities and media coverage, whereas
service sponsors are more motivated to enhance employees morale (Bjrn, 2003). Event
Sponsorship As a result of the amount of leisure events in todays society, event sponsorship
has become extremely popular. By connecting a brand with an event via sponsorship,
companies can better gain consumers attention and interest by associating with an event
that is important to consumers (Roy, 2003). Event Type | 44

37. 45. Different types of events exist, such as sports, music and festival related, and affect event
image in a number of ways. An events image is strongly influenced by an individuals attitude
towards the event, through past sponsorships or other types of exposure. Event image can
also be impacted by non-evaluative perceptions of an event that are formed through
associations held in the consumers memory (Gwinner, 1997). Sports Sponsorship Sports
sponsorship is the most common sponsorship activity, as it can emanate very strong images
through for instance, extensive television press coverage, as well as being appealing to all
classes in society and consequently has a mass international audience (Jobber, 2004).
Moreover, it can transcend languages, hence national boundaries, as it is comprised of a
range of nonverbal components, such as universal messages of hope, pain or victory
(Quester, 1998).As a result of this, many international marketers is looking to create icons
associated with specific meanings, which are universally recognized(Fahy, 2004).The
increasing amount of money spent on sports events, such as the Olympics as well as the
growth in the number of sports-oriented radio talk shows and television networks, such as
Sports Programming Network (ESPN), clearly illustrate the growing importance of sports in
todays society. Not only will sports sponsorship continue to be a popular and growing.
Individual Factors An event may entail different images for different people as a result of the
different factors that affect event image and the way in which recipients may interpret those
factors. Examples of such events are those that are regarded as having a number of images,
and thus are more difficult to associate with than an event with one identity. Furthermore, a
persons history with a certain event could also | 45

38. 46. influence ones perception of an events image, as a long history will generally cause a
more deep- rooted and constant image (Ibid). Moderating Variables Sponsor-event
similarity entails that the sponsoring product in question is in fact used by participants during
the event, or when the events image is linked directly to the brands image. An event can
either have one sponsor or hundreds of sponsors at many different levels. However, events
with multiple sponsors decrease the likelihood that a specific brand will solely be associated
with the event, due to the extra stimuli each consumer has to consider and address. Event
frequency can also affect the image transfer process, in that an event can either occur one-
time or on a recurring basis (Ibid). Celebrity Endorsement Celebrity endorsement has
 developed tremendously in the past decades and has been acclaimed as a ubiquitous
feature of modern marketing (Hsu, 2002).According to (McCracken, 1989) a celebrity
endorser is any individual who uses his or her public recognition on behalf of a consumer
good by appearing with it in an advertisement. Based on the notion that celebrities are
successful spokespersons for a companys brand or product, in that they deliver a companys
advertising message and persuade consumers to purchase the sponsored brand, a substantial
amount of money is annually spent on celebrity endorsement. Accordingly, it has been
confirmed by scholars and marketers that celebrity endorsement is a very effective marketing
tool, as celebrities have considerable influence on consumers attitudes and purchase
intentions (Hsu et al. 2002). Advantages of celebrity endorsement include its ability to
differentiate an advertisement from surrounding advertisement clutter by providing the
product(s) with instant character and appeal. Furthermore, celebrities who are particular
popular and recognized worldwide, have the capacity to enter international markets, and
thus go beyond cultural border (Erdogan, 1999). However, a risk with | 46

39. 47. celebrity endorsement is that a celebritys image may have a negative impact on the
brand or product that he/she endorses as a result of negative news or publicity, or simply not
appealing to everyone, seeing as a celebritys image often transmits itself to the endorsed
brand, and accordingly the brands image transmits itself to the endorser (Till, 1998). | 47

40. 48. The following information has been synthesized from their findings. Coke vs. Pepsi An
overview, written by Rahul Shinde, was also taken into consideration. Overview of Indian
Market- Past In the year 1991, the Indian Government adopted Economic Liberalization
Policy Cold Drinks as popularly known in India were an Urban phenomenon and the
favourites (soda based) were Campa Cola, Gold Spot, Limca and Thums Up Pepsi entered in
the Indian Market as Pepsi Foods Ltd. and was known as Lehar Pepsi Coke tried to re-enter*
in 1990 by merging with Godrej but was denied; merged with Britannia Industries India Ltd.
July 1993 Parle sold its brands and plants to Coke *Coke was present in India from 1970s, but
was banned in 1977 under FERA Overview of Indian Market- Present Today the Indian
Market for Carbonated Drinks is worth more than Rs.17000 crore The present scenario of
the carbonated drinks market is duopoly* situation. Although in every place there are local
competitors and there is a huge unorganized flavoured water market. As far as the
carbonated drinks are concerned there are only two brands (as per the Market Share). Coke
(57.8%) Pepsi (35.6%) | 48

41. 49. *A duopoly is a competitive situation where there are two competitors, normally of
roughly equal size. Coca- Cola Milestones 1886: Founded by John Pemberton 1887:
Registered as trademark. 1895: Sold in every state & territory in US. 2003: Headquartered
in Atlanta with divisions & local operations in over 200 countries worldwide i.e. 70% income
from outside US. 1970s: Entered Indian Market for the 1st time 1977: Exited the Indian
Market 1993: Re-entry in India 1993-2003: Invested more than US $1b in India- top
 international investor. 2003-2008: No. 1 soft drink Company in India. Pepsi Co. Milestones
1899: Founded by Caleb Bradham 1902: Applied for trademark in US 1923: Declared
bankrupt & assets sold 1985: Gained entry in India 1988* - Succeeded with Pepsi Food
India Limited Project as a joint Venture with Punjab Agro Industrial Corporation & Voltas India
Limited. | 49

42. 50. 1991: Marketed & sold as Lehar Pepsi. 1994: Bought out its partner and become a
fully owned subsidiary. Today it is the No. 2 soft drink company in India. *In 1988, forced to
withdraw from market due to carcinogenic ingredient (BVO) Coca- Cola Products in India
Coke Diet Coke Thums Up Sprite Limca Maaza Fanta Georgia (Coffee) Kinley
(Drinking Water) Pepsi Co. Products in India Pepsi Diet Pepsi 7 Up Miranda Mountain
Dew Tropicana Juices Lays, Cheetos & Ruffles (Snacks) Quaker Oats Aquafina (Drinking
Water) | 50

43. 51. Pepsi & Coke: Three Levels of a Product Fig. 2.1 | 51
44. 52. Competitor Capabilities Matrix TABLE 2.1 | 52
45. 53. Differential Competitor Analysis TABLE 2.2 | 53
46. 54. Place | 54
47. 55. Fig 2.2 Place | 55
48. 56. Coke Sales & Distribution is handled by a large number of bottlers. 26 bottling plants
60 distribution centres 20 contract packers Over 70000 retail outlets serviced via trucks,
converted three wheelers, tricycles & push carts. 300 million soft drink consumers Pepsi Co.
Pioneer in use of Vending Machines and Restaurant, Departmental Stores Built up
distribution network & bought out a lot of Bottlers Production plants and bottling centres
were strategically placed in large cities all around India Focusing on the rural PepsiCo has
37 bottling plants in India, including 17 company-owned plants and 20 owned by franchisee
partners Price | 56

49. 57. Coke Earlier COST BASED Pricing. The Rs. 5 (200 ml) and Rs. 8 (300 ml) marketing
revolution Coke spends more on advertising than manufacturing Pepsi Co. Competition
based Very flexible to come down with the price very quickly Promotion Coke Brand
Localization Strategy: The Two Indias India A: Life ho to aisi India B: Thanda Matlab
Coca-Cola Small bottle scheme Pepsi Co. Pepsi balance 2 influences in the minds of the
customers: Youre cool the way you are Dont try to be any different It was positioned
as the new cool youth icon Nothing Official About It | 57

50. 58. Yeh Dil Maange More Mera Number Kab Ayega? Yeh Pyaas Hai Badi Youngistan
Change the game PROMOTION SWOT Analysis: Coke | 58

51. 59. STRENGTHS Well established Global Brand Prior knowledge of Indian market (1958-
1977) Tie up with local players (Britannia Ltd) Strong Fiscals to acquire local business
 (bottling plants/local brands) WEAKNESS Improper appreciation of existing Indian Laws at
entry time (in case of acquisition, 49% sale of equity to local partners mandatory)
OPPORTUNITIES Many successful brands to pursue Advertise its less popular products
Buy out competition. More Brand recognition THREATS Strong Competition from Pepsi
and other local brands due to late entry Stricter legal framework (49% equity to Indian
Investors) Decreasing popularity of carbonated drinks in India SWOT Analysis: Pepsi Co. |
59

52. 60. STRENGTHS International Brand and Global Experience Benefitted by learning from
Coca-Cola mistakes in India pre 1977 Willingness to comply with stringent Indian Laws
WEAKNESS Lack of Experience in Indian market OPPURTUNITIES Food division should
expand Noncarbonated drinks are the fastest-growing part of the industry There are
increasing trend toward healthy foods Focus on most important customer trend -
"Convenience". THREATS Unfriendly political environment and Indian legal framework
Competition from local manufacturers Low demand in Indian market for carbonated drinks
Poor infrastructure especially in rural India Model for Brand Equity for Pepsi & Coke | 60

53. 61. Fig 2.3 Segmenting Consumer Markets for Pepsi & Coke | 61
54. 62. Fig 2.4 Advertising Campaign | 62
55. 63. | 63
56. 64. Coca-Cola - More Emotional | 64
57. 65. PEPSI - More Youth Centric | 65
58. 66. Ansoff model for Coca-Cola TABLE 2.3 | 66
59. 67. Ansoff model for Pepsi TABLE 2.4 | 67
60. 68. Current and Future Strategies TABLE 2.5 | 68
61. 69. CONTENTS Research Design and Methodology Objective of Study Purpose of the
study Research Design Data collection method Instrument use (Questionnaire) Sample
determination Sampling Hypothesis Development Statement of the problem | 69

62. 70. RESEARCH METHODOLOGY OBJECTIVES: The objectives of the Project Study are: To
conduct a local market survey with the purpose of gathering the necessary data Analysis of
the data collected in order to:

63. To study and assess the competitive position of Coca-Cola and Pepsi
64. To study retailer expectations
65. To study consumption pattern of the consumers
66. To study the factors influencing the choice of the brand by the consumers
67. To study the preferences of different age groups and gender
68. To find the most preferred cola flavoured drink
69. To find which cola drink has a better flavor/taste
70. To find which brand has better packaging and labeling
71. To find which brand has a better marketing campaign and what themes is it based on
72. To determine which brand is most preferred on the whole
73. To find out which brand is more available at local shops venders, restaurants, fast-food joints,
arcades and sports-oriented bars, etc

74. 71. PURPOSE OF THE STUDY The main purpose of the survey was to find out the preferences
of the consumers and find out which cola-beverage is more popular among the consumers,
on basis of the beverage itself and as well as the respective advertising and marketing
strategies. The secondary purpose was to visit the outlets in a particular area and get as
much information as possible on the two brands. To know the competitive position of Pepsi
with respect to Coca-Cola and the consumption pattern of cola flavoured soft drinks of the
consumers the situation demanded a market study and analysis through a survey so as to
give an over view of the market situation in quantitative terms. The Indian Carbonated
Beverage Industry is a very dynamic industry. The soft drinks are the life style brands and are
closely related to the personal preference of the consumer, which in turn depends on the
consumers social status and income. The game of Cricket is used as a medium to advertise as
the Indian cricket team is sponsored by Pepsi. Brands like Pepsi use the cricket season to
advertise and promote their brands. Various attractive schemes and offers are also
announced during the cricket match season. The national passion for cricket in the country
makes it a unique marketing instrument. | 71

75. RESEARCH DESIGN Selection of Data collection Method: Primary data: Tabular format filling
In-depth Questionnaire/Form Interaction submitted on the internet Secondary data: Internet
and other researches Selection of Measurement Technique: Quantitative analysis, bar
graphs & pie charts. Primary considerations in Sampling - Population: Retailer and
consumers of Chandigarh - Sample Frame: selected areas in Chandigarh - Sample Size: 100
consumers - Sample Plan: Visited various restaurants, fast food joints, bars, arcades by
vehicle. Method of Analysis: Quantitative Ethical aspects: I have made an effort to make
this research study free from personal Opinion and preferences, for my Market Research
project of BBA III . Time and Financial Cost: Total survey took 12 to 15 days and Cost
incurred was Rs 2000/- Limitations of study: | 72

76. 73. 1) The study was mostly confined to Chandigarh city and students 2) The study was
limited to only 150 consumers When conducting a research, the researcher can choose
between two approaches; qualitative and quantitative method. The qualitative method
involves the gathering of a lot of information from few examination units through interviews
and observations, while the quantitative method entails that the researcher collects little
information from many investigation units through, for instance questionnaires. Seeing as the
 overall purpose of this paper was to gain a deeper understanding of different factors affecting
consumer preferences on a local market, the quantitative method was applied, and thus a
questionnaire (quantitative data was collected) was conducted in accordance to our The
research was begun with describing different concepts, such as consumer preference,
advertisement and marketing campaign, and thereafter moved towards concrete empirical
evidence, that involved studying the extent in which different international and local factors
influence local consumer preferences. Finally, we analyzed the findings in relation to theory.
As a result, a deductive approach was applied, which implies that the researcher begins with
a theoretical or applied research problem and ends with empirical measurement and data
analysis. Given that the findings were not generalized to the entire local consumer market,
but rather observed a specific group of consumers on the Chandigarh market, the latter
approach was not applicable. The two soft drinks (Coca-Cola and Pepsi) were purchased at
different times, the carbon acid might have been weaker and disappeared easily in some of
the drinks, while in others it must have much more apparent and lasted longer. As a result,
the taste could easily have been affected by this. Another factor that could have affected the
results was the temperature of the drinks. While in some cases the drinks would be icy cold,
they would at other times be at room temperature, which could affect the | 73

77. 74. respondents taste buds and preferences, and thus a deviation in the results is possible.
Moreover, the product that the respondents normally consume is often refrigerated and thus
cold, as well as having a higher dose of carbon acid, and as a result, if these variables are
altered, the taste could very much have been different, and hence impacting their choice of
brands. Another thing that can be questioned is the consistency of the respondents. We
found that the youngest group of respondents, 20, was easily influenced by one another, in
that they discussed the questions among each other. Thus, the credibility of some of the
answers can be questioned. Finally, we found the oldest group of respondents, 45-60, to be
most difficult to cooperate with, as they were very sceptical and reluctant to participate in
the study. As a result, one could question the sincerity of their answers, and whether they
rushed through the questionnaire and therefore did not answer the question as
wholeheartedly as we would have hoped. Data collection method Data is one out of two
types, either primary which is collected by the researcher/s or secondary data which is
gathered by other researches. We decided to use a questionnaire as our main source of data
collection (primary data), as our aim was to measure consumers understanding and
experience of global advertising campaigns. Consumer preferences The questionnaire
initiated with an introduction to the consumption of the cola drink and hence the questions
were designed in such a way to give an overall view of the respondents relationship to cola
as a soft drink. Instrument use (Questionnaire) The questionnaire allowed us to gather
specific information on how different consumers perceive international advertising
campaigns, as well as the different factors that influence consumer | 74
78. 75. preference. According to (Ruane, 2005), a questionnaire is a self-contained, self-
administered instrument for asking questions. The questionnaire was divided into structured
and unstructured questions accordingly. A structured question may either entail multiple
choices, dichotomous questions, or a scale, whereas an unstructured question is an open-
ended question, which implies that the respondents answer in their own words. The
structured questions that were asked were either dichotomous or scales. In dichotomous
questions, the respondents could only choose between two response alternatives, such as
Male or Female, making it easy to code and analyze. Finally, in combination with the
structured questions, unstructured questions were asked, where the respondents were able
to clarify and express in detail their responses and opinions. One of the main objectives of a
questionnaire is to uplift, motivate, and encourage the respondent to become involved in
the interview, to cooperate, and to complete the interview. This was achieved through
asking interesting questions in combination with visual images to help clarify the questions.
Sample determination The population chosen to investigate in order to reach the purpose
was the chosen local market; consumers of Chandigarh, and thus was decided upon a
combination of quota sampling and convenience sampling from this population. Quota
sampling implies that a researcher can choose to have a specified proportion of the
investigated elements in the study. This partition into different stratums can include different
categories, such as gender, age, lifestyle, and ethnicity. When the researcher has decided
upon which categories to use in the partition, as well as the number of respondents to
investigate, convenience sampling is used to collect them. When convenience sampling is
utilized, there is a lack of a clear sampling strategy and the researcher decides which
elements to study depending on the ease of access. | 75

79. 76. SAMPLING The population chosen to investigate in order to reach the purpose was the
chosen local market; Indian consumers (mostly from Chandigarh City), and thus it was
decided upon a combination of quota sampling and convenience sampling from this
population. Quota sampling implies that a researcher can choose to have a specified
proportion of the investigated elements in the study. This partition into different stratums can
include different categories, such as gender, age, lifestyle, and ethnicity. When the researcher
has decided upon which categories to use in the partition, as well as the number of
respondents to investigate, convenience sampling is used to collect them. When convenience
sampling is utilized, there is a lack of a clear sampling strategy and the researcher decides
which elements to study depending on the ease of access. The quotas that were chosen for
this thesis were divided into three different age groups in accordance to: 20, 20-25, 26-30,
31-45and 45-60. The chosen groups represented a diverse set of people, who are at different
stages in their lives, and thus believed that their perception of international advertising
campaigns and sponsorship activities, as well as international brands would vary.
Consequently, the aim is to study whether age impacts the way in which consumers are
 open-minded to advertisement and whether there was a significant difference between the
groups. Various respondents were chosen from each age group: 20: the majority were
seventh to eleventh graders 20-25: students from my University. 26-30: family, friends,
teachers | 76

80. 77. 31-45: friends parents 45-60: grandparents of friends and others from these
respondents were chosen as a result of easy access, as the majority were either friend or
family. Although the researcher did not have a personal relationship with the majority of the
youngest age group, it was still found to be convenient and easy access to them due to
sharing the questionnaire online, as well as being the easiest and most reluctant group to
participate in the study. All the potential popular beverage serving joints in a particular
selected area were considered is the sample. The sample will be divided in 4 categories. 1.
Fast food joints 2. Arcades, 3. Bars, 4. Restaurant. The sample sizes will be 150 consumers and
17 food joints. Hypothesis Development In the 1980s, consumers were tested on whether
they preferred the Pepsi product over that of Coca- Colas, and the results proved that the
majority did indeed choose Pepsi. Yet, interestingly enough, Coca-Cola was and still is today
the leader within the cola drink market. Based on these results, we assume the following: H1:
Consumers explicitly prefer one brand but actually favour the taste of another. | 77

81. 78. Coca-Colas and Pepsis marketing strategies differ widely, specifically in that of their
advertisements, where Coca-Cola depends heavily on tradition, while Pepsi relies more on
the appeal of celebrities and young people (www.geocities.com). As a result, we suggest the
following: H2: Seeing as Coca-Cola and Pepsi seem to target different consumers through
their advertisements and sponsorships, we believe that depending on a persons age, the
choice of cola product differs, as well as their taste preference. More specifically, that the
youngest age group particularly have a more positive attitude towards Pepsi on the whole,
whereas the oldest age group are more positive towards Coca-Cola. According to theory,
teenagers have a high need for belonging, independence and approval to name a few, but
more importantly they need to feel accepted, particularly by their peers (Solomon et al.
2001). Consequently, they switch brand preference often and are easy targets for marketers.
Thus advertisement is primarily targeted at them, as they are vulnerable to consumerism and
media (Blackwell et al. 2001). As a result, we propose the following: H3: People aged twenty
and younger have the highest level of knowledge of brand advertisement, hence they are
more influenced by it in their choice of products than any other age group. | 78

82. 79. STATEMENT OF THE PROBLEM As there is neck to neck competition between PepsiCo and
Coca-Cola, the situation demands a market analysis through the Retailers and Customers
which gives an overview of the market in quantitative terms. The area selected is the city of
Chandigarh, India, mainly, though responses from Consumers of other cities and countries
have been included as well. The purpose of this project is to explore the competitive position
of Regular Pepsi with Regular Coca- Cola, and to explore the consumption pattern of a regular
 Cola-flavor soft drink of consumers, and also to study the Retailers expectation. It is
important to know the frequency with which Consumers are drinking their preferred
beverage and whether the consumption frequency depends upon the area they are from.
The company has to know the demands of the customers and their preferred flavors and
brand. It is done through frequently visiting and questioning Retailers, and through
questionnaires and surveys to know the needs of the customer. This survey covers all the
dimensions that dealers consider while carrying out their business. The aim of the survey was
to visit the outlets in a particular sub route and get as much information as possible. | 79

83. 80. | 80
84. 81. CONTENTS Analysis & Interpretation with graphs & pie-charts Discussion of findings
and interesting facts with tables & pie-charts | 81

85. 82. Analysis & Interpretation Which of these drinks do you prefer? Fig. 4.1 (Source
Questionnaire) Coca-Cola [85] 57% Pepsi [19] 13% Neither [11] 7% Depends on
mood/availability [35] 23% Interpretation Out of 150 respondents, 85 people (57%) prefer
Coca-Cola over Pepsi while just 19 people (13%) prefer Pepsi over Coca-Cola. Also, 11 people
(7%) like neither of the drinks and 35 people (23%) did not have a fixed choice and/or just
drank whichever drink was available. Which drink do you prefer the taste of? | 82

86. 83. Fig. 4.2 (Source Questionnaire) Coca-Cola [92] 61% Pepsi [19] 13% Like them equally
[14] 9% Don't like either [9] 6% I can't tell the difference [16] 11% Interpretation Out of 150
respondents, 92 people (61%) prefer the taste of Coca-Cola over Pepsi while just 19 people
(13%) prefer the taste of Pepsi over Coca-Cola. Also, 14 people (9%) like both of the drinks
equally, 9 people (6%) did not like either of the drinks and 16 people (11%) could not tell the
difference between the two drinks. Interestingly, 7 people out of the 92 people who prefer
the taste of Coca-Cola over Pepsi, sometimes buy Pepsi because it is more available. This
maybe because Pepsi has more collaboration with restaurants and events, as compared to
Coca-Cola. Which drinks labeling and/or packaging do you prefer? | 83

87. 84. Interpretation Out of 150 respondents, 128 people (85%) found Coca-Colas Packaging
and Labeling more attractive and relatable than Pepsis Packaging and Labeling. However, just
23 people (15%) found Pepsis Packaging and Labeling more attractive and relatable than
Coca-Colas Packaging and Labeling. This might be as Coca-Cola is a brand that tries to
connect with their customers whereas Pepsi is more commercialized and concentrates more
on popularity and trends. Although the Packaging and Labeling of both the brands is very
similar, Coca-Cola seems to have employed a better method to connect with its consumers
than Pepsi. Which drink do you think is more popular? Fig. 4.4 | 84

88. 85. (Source Questionnaire) Coca-Cola [109] 73% Pepsi [26] 17% I don't know [15] 10%
Interpretation Out of 150 respondents, 109 people (73%) think Coca-Cola is more popular
than Pepsi. However, just 26 people (17%) think Pepsi is more popular than Coca-Cola. And,
 only 15 people (10%) did not know which drink or brand was more popular. Out of these 109
people who think Coca-Cola is more popular than Pepsi, only 92 people like the taste of Coca-
Cola and further only 85 people prefer Coca-Cola over Pepsi. Thus, there were as many as 24
respondents who knew Coca-Cola was more popular but still prefer Pepsi. This could be
because of brand loyalty or taste preference. Which of these aerated cola beverages does
your local shop offer? Fig. 4.5 | 85

89. 86. (Source Questionnaire) Coca-Cola [16] 11% Pepsi [7] 5% Both [125] 83% Neither [0] 0%
Don't know [2] 1% Interpretation Out of 150 respondents, 16 people (11%) say that their
local shop generally offers Coca- Cola while 7 people (5%) say that their local shop generally
offers Pepsi. But, 125 people (83%) people say that their local shop generally offers both
Coca-Cola and Pepsi. 2 people (1%) also said they did not know which drink their local shop
offers. Which of these brands' marketing campaign do you prefer or find more appealing? Fig.
4.6 | 86

90. 87. (Source Questionnaire) Coca-Cola [97] 65% Pepsi [40] 27% Don't know [12] 8% No
response [1] --- Interpretation Out of 150 respondents, 97 people (65%) prefer the marketing
campaign of Coca-Cola over Pepsi while just 40 people (27%) prefer the marketing campaign
of Pepsi over Coca-Cola. Also, 12 people (8%) could not decide which brands marketing
campaign was better as they were either too similar or had an equally strong impact on the
respondents but in different aspects.1 person did not give any response. Which one do you
find more available when ordering one of these drinks at a restaurant? Fig. 4.7 | 87

91. 88. (Source Questionnaire) Coca-Cola [51] 34% Pepsi [51] 34% Both [34] 23% Don't know
[6] 4% I don't usually order either [9] 6% Interpretation Out of 150 respondents, 51 people
(34%) found Coca-Cola more available in restaurants and again 51 people (34%) found Pepsi
more available in restaurants when they order one of these drinks. 34 people (23%) found
both Coca-Cola and Pepsi equally available at restaurants. Also, 6 people (4%) did not know
which one was more available and 9 people (6%) do not order either of these drinks when
they go to restaurants. How often do you drink the soda you usually drink? (Regular Coca-
Cola or Regular Pepsi) Fig. 4.8 | 88
 Reviews on Pepper Steak Lunch

L Employees are accommodating and are always smiling. Pepper rice meals
are okay. What I only didn't like was when it took more than just a
follow up to serve the ice cream. And I was kinda disappointed that
this dessert was too sweet for our liking.

Jeff Nice concept. Nice food, though the plate can be really hot that
It burnt my mouth multiple times, lol. Not sure about the ice cream,
though.

Arianne Virata Pepper lunch is a place for hot rice meals wherein you
cook the meat yourself in a convenient way.

Food: my favorites are beef pepper rice and BBQ beef and Hamburg combo.

Place: since it's sizzling, the smoke is all over the place. The smell
will stick on you.

Maki Overall taste is good. The selections are limited and the prices
are quite expensive but there are provisions of combo meals which can
make it more reasonable. Personal favorite: signature dish sizzling
beef and their soft ice cream.
Jovijovijovi a solid place to get a good hot meal. pepperlunch has
grown from a fad to a staple in various malls and food places. the
taste depends much on your skill in mixing and playing with the
condiments but it should work out well with some generla knowledge.

Jomarie Ang Last Saturday, we had a planned catch-up session with some
of my friends from one of my previous workplaces, but for some reason,
it ended up that only I and another friend showed up.

Since we worked near Robinsons Place Manila before, we agreed to meet

up there for our early dinner. We met up at around 5pm, and upon
checking with her, K suggested that we eat at Pepper Lunch. (Note: This
is another well-known restaurant which I have never been to. Haha. No
judging, I just don't prefer sizzling food if I have other options, and
I always feel like the food here is not very sulit.) I agreed, so I can
try it out once and for all.

The restaurant was not that crowded for a Saturday almost-dinner. I

browsed through the menu, and the SALMON PEPPER RICE (Php 275) caught
my eye. I LOVE SALMOOOON.

The plate was served after a few minutes, with the food sizzling like
there's no tomorrow.

The plus side of eating sizzling food, is that the food does not get
cold easily, especially for people (like me) who eat slowly. The
serving size of the meat / ulam was a bit small though, in my opinion.
When the food is mixed, you probably will have "enough" toppings for
your rice, but the price does not really justify the serving size. The
dish was also a bit salty for me, possibly because of too much sauce?
The corn complemented the taste of the fresh salmon toppings of the
rice; loved the sahog!

In hindsight, I probably should've ordered beef pepper rice instead,

since i think it's the best selling item. But who could resist salmon,
right?

Jericho Hollman Jumangit SERVICE: Their staffs are very kind and very
Accommodating Despite the huge volume of guests.
PLACE: The seats are comfortable, the lighting is good for food
photography.

PRICE:The price of their food ranges from 220 to 700 pesos.For me, Some
of it is kinda overpriced based on the price and the serving that
you'll get.

FOOD: I ordered the jumbo beef pepper rice, it is good. But the problem
is that the plate wasn't that hot enough to cook the beef and i even
waited for almost 40 minutes for my order.

Angelica Casipe Some of the food was not included on the menu
especially the desserts that was flashing on their tv screen. I dont
know maybe its one of their marketing strategy but its somewhat
bothersome when you already placed your order. But the food was nice
tho, I'll return for sure.

Jamela Bucad I love this place, good food, I have tried it in their
Solenad 3 Sta. Rosa branch. Good ambience with free wifi. Although im
not a fan of their curry, its quite oily. I love the salmon and
chicken.
Serving was fast, but their staff dont smile and seems so serious!
MAybe they were just tired because its already around 8pm when we were
there.

Arkee-kai-in Like any other branch of pepper lunch, the place is neat
and clean...

Steak
Look and taste amazing. I love how they present the food.

Dessert
You'll crave for more once you have a taste of their dessert.

Wanna go back again and again...

Nel Serafica I have a thing for food places like Pepper Lunch,
especially their sauce. One will not wait long for the food, but the
taste is still good and intact. And don't you just love the sizzling
sound when they serve the food on your table?

PaoSongki Me and my bros favorite: Curry Beef Pepper Rice, *Jumbo

(option to add more cheese)
5/5
In my opinion, their most flavorful dish.

Nicole Pepper Lunch is one of my go-to restaurants, especially when I

can't really decided where to eat. The last time we went here, we
ordered the Shimofuri Pepper Steak, Double Beef Hamburg with Rice, and
Classic Tomato Pasta.

The Shimofuri Pepper Steak was okay, it wasn't really anything special,
and I just ordered this one out of curiosity, as I always order the
same thing whenever I dine here. Anyway, it's not really something that
I'll order again in the near future. The Double Beef Hamburg with Rice
is one of my favorite Pepper Lunch meals, although I like it more when
I slather the honey or garlic sauce on the hamburg as it would actually
be pretty bland without it. I also remember a time when Pepper Lunch
actually served a huge hamburg instead of two, and appearance-wise, I
do prefer having that instead of having two small hamburgs. Last would
be the Classic Tomato Pasta, another dish I ordered out of curiosity.
It was, again, okay, but probably not something that I will be ordering
again.

Service was okay, staff were helpful and quite friendly. The place is a
bit small, but not too cramped for us to feel uncomfortable.

Micko Jonnlli First time I tried Pepper Lunch, saw the word "curry"
and I'm immediately sold. Ordered Curry Rice with sliced beef. Upon
seeing the food, I told myself "small serving is pretty underwhelming
for such a pricey meal..." I was wrong though... Flavour's outstanding
that it really made me full and satisfied at the same time after I
devoured the meal. I don't know, maybe I'm biased on how happy I am
after eating their curry rice. If you want to try something japanese
but savory, Pepper Lunch is for you!!! Overall, 3/5 for me

Erwin Joe An average restaurant with good hotplate food, love their
chicken aglio olio but not a fan of their curry. Average service with
average interior design.

Kix When you've had a long day and you just want to eat something good
and filling, Pepper Lunch is always a good choice. They serve your food
straight up. But mine took awhile to arrive, I wonder what would take
long though. Heating the sizzling plate or slicing the beef? Whichever
the case, I don't think it would take 20 minutes for something they
would barely cook to arrive. Good thing the salad's super yummy! The
dressing doesn't make you cottonmouth and the amount is just right for
the salad. The salad's quite expensive compared to the serving. Mashed
Potato's yummy yummy yummy!! Molecular in serving but okay na sarap
sarap!! Buttery plus the gravy's amazing!

Shey Always my go to restaurant whenever I want something sizzling with

rice. I alternate ordering between the garlic pepper beef and the curry
beef with cheese when I eat here. It's also a must to drizzle a bit of
their special sauce onto the beef and rice for an even more flavorful
meal! Just be prepared to also smell like what you just ate after so
stash an extra shirt in the bag just in case.

Gordee We had a very disappointing experience here. It's not the staff,
but the food. So we ordered their beef strips. The serving size of the
meat is so small compared to the rice and our orders were drizzled with
pepper. It waa very salty and we were just forced to finish our orders
so that it wont be wasted.
Joey Melliza Always super satisfying and comforting! If you don't want
to think and just want good, hearty good this place is your best bet...
Just be prepared to smell like food.

Dylan Gray its always a Beef terriyaki rice with egg in jumbo size with
extra bean sprout on the side to share with my hubby. sorry for a
greenwich because its best pair with lasagna to end a meal. more pepper
rice to come.

Kareen Toinkkatdidi Ramirez Botin They serve the food hot of the pot.
It's really nice that you can eat your food freshly done. The beef is
tender and food really taste good. As always the people who come here
need to wait but the wait is worth the food.

Migs Gabriento I loved how the food smells here. You can just smell the
spices added on that sizzling plate goodness which made me enjoy the
dining experience. The food definitely tasted great. Safe options are
the Beef Pepper Rice and the Curry Beef Pepper Rice with Cheese. This
was fastfood that's delicious and satisfying.

Mina Barroquillo It is what it is. The food is good, but it won't take
your breathe away. I know people who are weirdly turned off by the
smell of this place though, but for me it smells appetizing?

Lize Angeles A hot plate of goodness that is very satisfying. Serving

portion can be shared as well, though be prepared to smell like the
steam of your meal after. Love their spicy tuna and kani salad as well.
Staff are nice and address to your needs very promptly.
Patricia-Louise Abando Tried the Lechon Pepper Rice and it was good.
First time to try a food like this. And full of spices, I really like
spicy foods. Kinda pricey but somehow worth it.

Stacy Danika Alcantara The first time i dined here was with my bet gay
friend and i loved it. There is something incredibly appealing when it
comes to sizzling dishes. I love the quality of the meat although i
think the food is good for sharing.

She Co Pepper Lunch is a great dining choice if you're looking for

meals cooked in sizzling plates. Must try and best-seller here is the
beef pepper rice. What I love here is that the meal is served really
hot and you have to mix it well to ensure that the raw beef gets cooked
well.

Cory Santos I went here with my boyfriend, he keeps saying that this
place is so good. I find their price a bit expensive. I like the style
of how they serve the food though. I also like their place, the staff
is very nice also.

Pico Pascua Good food. Unhappy with service and place. The place was
full of cockroaches. A couple told the waiter about the cockroach and
did nothing about it but stare.

Gem Saitam Always grabbing Chicken Pepper Rice here with the Kani Salad
on the side. Mixing the CPR with both sauces make the whole hot dish
sizzle its flavor down to my stomach. Definitely, a good selection for
lunch!
Mary Ann I like it when my food is served hot, and they serve your
food really hot :) if you like black pepper and meat this is the
perfect place. I love the caramel kuromitsu ice cream, looks good and
tastes good too.

Florenz Dela Cruz I always love eating here in Pepper Lunch from my
first try few years back up until now.

Food - I love the quality of their food and how it was serve. The
appearance, the smell and the taste didn't disappoint as well. Plus
points for the variety of sauce on the table. One thing I've noticed is
that they're not explaining how to properly cook the meat anymore, they
used to explain that before after serving the food, I think that's
helpful for first timer (less .5 points)

Staff - I am satisfied with how the staff treated us during our meal.
There's no need to wait for so long before they serving us with what
we've asked for. Or maybe we're just lucky because the place was not
crowded that time.

Place - The place is a bit small compared to Pepper Lunch in Greenbelt

but other than that there's no negative comment about the place.

Satisfaction - food is a bit expensive but always worthy. The value for
money is excellent and the satisfaction level I had during my last
visit is HIGH. I asked my girlfriend to eat here with me and she was so
satisfied as well with her meal.

Overall my last visit was almost perfect should've been 5 but I really
believe that the explanation on how to fully cook their meal is helpful
especially for first timers.

Getting Pigger The food is tasty. The staff are accommodating. But I
think, it's the sauce that makes it tasty. Not the food itself. I just
hate the fact that I can't eat well because it is really served too
hot! Haha. You can't eat here if you're really hungry. You will
definitely hate it haha. Also the place is quite small. And you will
not really get full when you eat here because all you think is the
food's hotness. Haha
Phoebe Lee Tokusen ribeye steak is the best! <3

Nino Dayanghirang On my way to Robinsons supermarket (this is where I

usually eat my daily servings of fruits), I always pass by pepper lunch
at Robinsons place ermita,

Last Tuesday, I bumped into one of my medical school buddies in

Robinsons Place ermita. He is currently an opthalmologist in the
wonderful city of Bacolod and was in town for a conference at SMX. I
asked him if he wanted to join me for lunch. I immediately asked him if
pepper lunch had a store in Bacolod. He informed me that there was no
Pepper Lunch store in Bacolod. We proceeded to pepper lunch. As we were
about to sit down the receptionist informed us that there was a line :)
oopppssss.... my mistake. I forgot the standard operating procedures in
dining at pepper lunch (I wrongly assumed that the line was not ongoing
due to the large number of unoccupied seats - my mistake).

We ordered my all time favorite beef pepper lunch. Is it just me or did

the servings of meat and rice really diminished in quantity (and
hopefully not quality)? (less 1 point in rating)

The meal was good but I was surprised to see from one of the previous
reviews of this store (by Jemiel Marcelino) that if you add 60 pesos
you get a drink and a side dish or a dessert... this "promo" does not
seem to be implemented anymore or we were not informed properly (less 1
point in rating)

It was a good enough experience, but my good friend from Bacolod did
not seem to be as excited as I was when I first had a beef pepper lunch
(which may show the poor quality and taste of the meal).

I think I should have just treated him to Izakaya Den which is just a
quick 5 to 10 minute walk from the pepper lunch store.

For people who are craving for pepper lunch. The store at Ermita is
perfect for you/us. If you are looking of a nice place to have lunch or
dinner at Robinsons Place Ermita, I highly recommend looking for
another store/restaurant.

Christopher Jay Diaz Unique serving style. Immediately mix your food
uppn serving before taking a shot! Lol!
Jemiel Marcelino I was looking for something in my taste, so i started
to walk n walk at the robinsons place to find something to eat. And it
brings me to this PEPPER LUNCH,

That day i am having a budgetary constraint so i have to eat less, so i

ordered the cheapest meal they have, so i'll have beef pepper rice, to
complete the meal you have to add up 60 php for you to have a drink and
a side dish or a dessert, i choose their ice cream, it was soft and
firmed beef that makes it more tasty and playful in the mouth, i like
the concept of pepper rice it add spice to the meal, and very relaxing
place match with music.