Pepsi Atom Essay

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Project report
A study to understand market acceptability of Pepsi Atom
In partial fulfilment of the requirements of
Master of Management Studies
Conducted by
University of Mumbai
“A study to understand market acceptability of Pepsi Atom”

under the guidance of Prof. Rajesh Vyas in partial fulfillment of the requirement of Masters of Management Studies by University of Mumbai for the academic year 2012 – 2014.

Prof. Rajesh Vyas
Project Guide

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Prof. Umar Farooq Dr. Kalim Khan
Academic Coordinator Director


The project gives an overview of the Indian soft drink market various players, new entrants etc. The
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Coca-Cola was the 1st international soft drinks brand to enter India in early 1970’s. Indian market was dominated by domestic brands, with Limca being the largest selling brand. Cola was the largest selling flavor with market share of 40%, Lemon drinks 31% and orange drinks only 19%.

Up till 1977, Coca-cola was the leading soft drink brand in India. But due to norms set by the Foreign Exchange Regulation Act (FERA), Coca-Cola left India and did not return till 1993 after a 16 year absence from the Indian beverage market. FERA needed Coca-Cola to reveal its secret concentrate formula as well as reduce its equity stake which was not acceptable. Pure drinks, Delhi launched Campa-Cola, to take advantage of Coke’s exit and by the end of 70’s, were the only Cola drink in the Indian market. In 1980, Parle, another major Indian player launched Thums Up, the drink which till date is most popular soft-drink in India. Pure Drinks strongly objected to Thums Up being called a “soft” drink as it felt its taste is too strong. For over a decade, Parle led the Indian soft-drinks market, with its market share reaching a peak of 70% in1990.

Attempt 1: In May 1985, PepsiCo joined hands with the RPG group to form Agro Product Export Limited. It planned to import Cola concentrate and sell soft-drinks under the Pepsi label and in return offered to export Juice Concentrate from Punjab. The government rejected the proposal due
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