The Soft Drink Bottling Industry
Over 1,500 U.S. patents were filed for a cork, cap, or lid for the carbonated drink bottle tops during the early days of the bottling industry. Carbonated drink bottles are under a lot of pressure from the gas. Inventors were trying to find the best way to prevent the
carbon dioxide or bubbles from escaping. In 1892, the "Crown Cork Bottle Seal" was patented by William Painter, a Baltimore machine shop operator. It was the first very successful method of keeping the bubbles in the bottle.
Automatic Production of Glass Bottles
In 1899, the first patent was issued for a glass-blowing machine for the automatic
production of glass bottles. Earlier glass bottles had all been hand-blown. Four years later, the new bottle-blowing machine was in operation. It was first operated by the inventor, Michael Owens, an employee of Libby Glass Company. Within a few years, glass bottle production increased from 1,500 bottles a day to 57,000 bottles a day.
Ninety years after the invention of what becomes one of the most favored drinks globally in 1988. Pepsi entered India flanged with heavy resources and riding the winds of change of a newly opened economy. First, Pepsi has only franchise unit. Pepsi gave his concentrate to small factory and they make beverage.
In 1988, Pepsi set up its offices in India. In this company Pepsi
Operates as PEPSI Foods Pepsi Co. India Holdings and Pepsi India marketing. The mission was to change the tastes and life style of a common
Indian, who identified soft drinks and beverages as a few available cold drinks, squashes and concentrates.
When it came to a refreshing drink conservative consumers would back to traditional nimboo pani, jaljeeram lassi etc.
Although India has a per capita consumption as low as 3 per person as compared to 400 in USm India has one of the largest number of potential consumers in a world with a population of an Arab, Every Indian guzzles 27 bottles of soft drink every year, an increase of one bottle per capita consumption would mean stating 900 bottles extra. India soft drink is of worth RS. 1800 crores with annual growth at the rate of20% to 25%.
All the activities of Pepsi Foods Pepsi Co, India Holdings and Pepsi India Marketing Company are controlled by business Unit (BU) located at GURGAON. This BU is
divided into various marketing units (MU's). All except the North and Market Units have common borders with states comprising them.
The market units demarcate the areas, which are "Coboised" i.e. have Company owned bottling operations (COBO). In these units there are company owned bottling plants while in other areas the operations are run by a franchisee these areas
are referred to as Franchisee Owned Bottling Operations (FOBO'S) and some and in some others Joint Venture operate.
COBO - In the COBO, the company has total control of the decisions and implementations undertaken, but for this the company has to invest its own money.
FOBO - The FOBO’S are independent to take their own marketing and Operational decisions with no major interference form the company.
The FOBO's are supplied the concentrate from the company and they have to run the show, thereafter. Pepsi maintains ownership of the trademarks and is primarily responsible for ownership in a local bottling operation. This helps Pepsi maintain strong trademark on the other party's resource and expertise. The PCI workflow concentrates on Selling, Making and Delivering Pepsi- Cola.
Pepsi -Cola is a company with a "Low margin, high volume business" Pepsi Co. deals in the carbonated Soft Drinks (CSD's) Market.
CSD's fall in two categories-Cola and flavors. Coals concentrate on Pepsi whereas flavors deal with orange and Lemon. In India the flavors are Mirinda Orange and Lime. Slice is a fruit Juice concentrate based Drink.
Starting out in 1989, with that name of "Lehar Pepsi", the company has grown leaps and bounds ever since with competition increasing with reentry of coke a few years ago. Thanks
to an early lead and a better understanding of the market, India remains amounts the handful of markets worldwide where Pepsi is ahead of its archival Coke.
Despite being the global Pepsi has build its success on meeting out the Indian customer's needs. Pepsi has made its brand synchronize with localized events and traditions. Pepsi maintained its top of mind awareness with roadside signage and reminders. The partner type relationship with bottles, FOBOs as well as COBOs cover most of the company adequacy. One of the strongest weapons in Pepsi's armory is the flexibility it has empowered its people with. Ht Pepsi every employee, may be a manager of a salesman, have an
and increase its consumption. Thus Pepsi believed in establishing and nurturing creditability of the salesman and making the joint commitment to grow business in accounts, all these factors together led to a high froth in the Indian market and constantly increasing market share.
Product wise comparison of Pepsi with competitor Coca-Cola
Pepsi Coke, Thumps Up
Mirinda ( orange+lemon+apple) Fanta(orange),Limca
Slice Maaja
7UP Sprite
Mountain dew Kinley(soda)
Diet Pepsi Diet Coke
Aquafina (mineral water) Kinley (mineral water)
THE RKJ GROUP
It can be said with absolute certainty that the RKJ Group has carved out a special niche for itself.
Their services touch different aspects of commercial and civilian domains like those of Bottling,
Food Chain and Education. Headed by Mr. R. K. Jaipuria, the group as on today can lay claim to expertise and leadership in the fields of education, food and beverages.
Franchisee (pearl Bottling Pvt.Ltd.,)
Often new flavors are to be added to the product line of cool drinks to prevent a competitor. To establish a relation with retailers it is desirable to sell more than
one flavor of cool drinks. To decrease the security seasonal products are added to the resources available so as to lessen its risks. Pepsi has given the franchise of Visakhapatnam region to Pearl Beverages which belongs to Pearl Group with Head quarters at Delhi and Mr. C.K. Jaipuria as the chairman and the Managing Director of the group. Pepsi Foods Ltd., declared Krishna Mohan Beverages and Constructions as franchise, in 1992.Last year it was changed to Pearl Beverages was taken by the Pearl Group. Campa-cola Soft Drinks has originally owned the premises since 1980 at Madhurawada. After the insolvency of campa- cola, KMBC purchased the premises in1990 in the auction by APSFC. Initially, it used to produce McDowell’s soda and Bagpiper soda. It produced these drinks under franchise
products.