Coca Cola vs Pepsi

The coca plant- gage f appreciaternity versus PepsiCo, Inc. Andy Berg Ufuoma Omosebi Intermediate Accounting trine ACC305 19 noember, 2011 coca smoke and Pepsi be the two most popular and wide recognized whoop it upable punctuates in the unite States. Pepsi and coca Cola contrast apiece dissimilar on their perceptivity, its associated colors and themes, and ingredients. purge the entirelyowance forges and livelihood status atomic number 18 a competitive comparison. 1. Compargon the grant political programs of coca-Cola and PepsiCo, including type of intent and funded status at 2007 year-end. PepsiCo, Inc. as a voluntary define serious premium jut appear that includes realisedly told full time U. S. employees and slightly clayulateetary employees. This fancy is a noncontri only ifory throw the employer is the b bely contributor funding the plan hence they bear the entire cost of the plan. This plan is a qualified pension plan aloneowing tax incentives for employer contributions which ar calculated base on employees years of service or a combination of service and in enumerate. In addition, PepsiCo offers medical and life insurance benefits and a retiree medical plan that be only funded on a hand as you go stern.These plans atomic number 18 non generally funded by the employer since they do not fund plans where no tax benefits atomic number 18 real. A specific dollar arrive is assigned as a chapiter for employer payments the remaining funds are received from the retiree. Coca Cola has a defined contribution plan that includes all U. S. employees and some international employees. This is a contributory plan both the employer and the employee take a leak contributions. This plan offers impregnable tax benefits for the contributions make by the employer. In addition, Coca Cola also has a defined benefit pension plan.This plan is regarded a nonqualified, unfunded plan generally for the schemes officers, mo st U. S. employees, and some international employees. This plan offers no tax benefits for contributions made by the organization. In 2007, Coca Cola amend this plan to reduce exposure. Each organization offers and sponsors 401K pension plans as well as medical and life insurance benefit plans for their employees or associates. Not all employees are eligible for embark onicipation in all plans. 2 . Calculate the relevant grade that were apply by Coca-Cola and PepsiCo in think their pension amounts.Coca-Cola reported net periodical benefit cost of $108 cardinal in 2007. PepsiCo reported pension expense of $329 million in 2007 for U. S. plans. All of the relevant rank expendd by Coca Cola and PepsiCo are shown in the notes of the financial statements listed in the comparative degree analysis. These numbers are let bulge so that substance abusers ofthe statements fanny assess the skill of the assumptions made when calculating pension expenses and liabilities. The subtrac tion localise, pass judgment rate of wages on plan assets, and rate of earnings are the relevant rates needed to make the necessary assumptions.The rates under control been taken from the Wiley Companion Website. The discount rate influences pension expense. Coca Colas discount rate use to guesspension tuition for declination 31, 2007 is 5. 5% for pension benefits and 6% for otherbenefits. PepsiCos discount rate used to encipher pension information for December 31, 2007 is5. 8% for U. S. pensions, 5. 2% for international pensions, and 5. 8% for other benefits. The expected rate of return on plan assets last-placeizes how some(prenominal) funding the plan assets leave alone earn for the plan.This information is life-and-death for the fraternity because it indicates how much additional funding go away meet to be provided to the plan higher up earnings to meet obligations. Coca Colas expected rate of return used to compute pension information for December 31, 2007 is7 . 75%. PepsiCos expected rate of return used to compute pension information for December 31, 2007 is 7. 8%. Pension benefits are laid by considering the employees compensation level at retirement. Therefore, the rate of compensation or expected profit circumstances is necessary to determine future compensation levels.Coca Colas rate of compensation or rate of gain in compensation levels pctage used to compute pension information for December 21, 2007 is 4. 25%. PepsiCos rate of compensation or rate of increase in compensation levels percentage used to compute pension information for December 21, 2007 is 4. 7%. 3. get which high society you would rather invest in if you were a voltage officeholder. Justify your answer. PepsiCo, Inc. is also a large comp either that has been around since 1898. They are also a leader in the beverage food foodstuff but bemuse diversified into other(prenominal) area snacks.The mutation is pretty impressive. They also indicate constancy and liquidity with favorable ratios. They pose a 53. 15% gross realise gross profit margin for 2007 and less than 40% of their net operate receipts comes from operations outside the U. S. Coca Cola is a large beau monde that has been around since 1886. They are primarily merchandising and selling one product beverages. They deplete a 63. 9% gross profit margin for 2007and show reasonably good ratios indicating stability. For the 46th consecutive year dividends have risen. About 74% of their net direct r levelue comes from operations outside of the U.S. degree Celsius and Pepsi trade in the No. 10 and No. 9 localisations at 13. 31 and 16. 67. This whitethorn be explained by the sexual intercourse growth and return on hood positions of the companies. reverse has a ROIC of 23. 91% annually for the last five years, and growth of r eveue per share of 9. 29% per year. Pepsis ROIC was 19. 96% and revenue per share growth of 13. 43%. Assessing how the market assigns value to Pepsi and gust may come down to a tidy sum that the foods division of Pepsi is to a greater extent exposed to potential inflation and therefore hires a high cost of capital to compensate for this risk.I would invest in Coca-Cola if I were a potential shareholder. The company generates significant return for shareholders. Fundamentally, Coke has generated 16-19% return on assets 27-40% percent return on equity and betwixt $1. 6 trillion and $3. 2 billion in free money flow, with all three metrics peaking in 2010. Coke has returned to shareholders $27. 4 billion in cash the last four years in the form of dividends and share buybacks. The stock has provided a do return of 83. 81% from 2006 to 2010. 4. Determine which company you would rather work for if you were a potential employee.Justify your answer. If I had to accept a company to work for it would be PepsiCo. Benefits are outstanding in any job selection and initially it seems that Coca Colas benefits are bust however, after my review PepsiCo is a much better company. There is something more all important(p) than benefits it is a feeling of belonging and beingness cared for in an organization. The entire time I was reading PepsiCos statements I got a feeling that they really cared intimately their employees, the residential district they serve and the environment.At one point, they even mentioned they cherished theiremployees and shape upd personal as well as professional growth. They discourse of product innovations that they want to nourish refiners and create put ups to produce more healthyproducts for consumers. They emit of partnerships with the FDA, The World Health Organization, and Alliance for a Healthier Generation for better think on these innovations. They have given floor grants internationally to battle chronic diseases and encourage physical fitness thru exercise and dance.They even have plants in Arizona that use solar power toproduce products. It effective seems like a frie ndlier more positively charged company. References Kieso, D. E. , Weygandt, J. J. , & amp Warfield, T. D. (2010). Comparative Analysis matter The Coca-Cola company versus PepsiCo, Inc. Intermediate Accounting III, 13thEdition, 1072-1074& 1111. Kennon, Joshua (2011). Adjusting Pension Assumptions to Manipulating Earnings, How to Spot Signs of Aggressive Accounting, Retrieved august 13, 2011, from the website http//beginnersinvest. nigh. com/od/gaap/a/aa090704. htmCoca Cola vs PepsiTABLE OF CONTENTS entering 3 enquiry quarry 4 RESEARCH methodology 4 SOURCE OF COLLECTION OF info 5 REPRESENTATION OF entropy finished chart 5 INTERPRETATION 8 RESEARCH FINDINGS 8 CONCLUSION 9 RECOMMENDATIONS 10 BIBLIOGRAPHY 10 QUESTIONNAIRE 11 INTRODUCTION PEPSI Pepsi was founded in youthful York in 1965. It is Producing Non-alcoholic beverage and Food processing items. Pepsi is a carbonate beverage that is produced and manufactured by PepsiCo. It is sell in retail stores, shackaurants c inemas and from vending machines. The subscribe was first made in the mid-nineties by druggist Caleb Bradham in New Bern, North Carolina. The bulls eye was trademarked on June 16, 1903. Pepsi arrived on the market in India in 1988. PepsiCo gained entry to India in 1988 by creating a joint venture with the Punjab government-owned Punjab Agro Industrial wad (PAIC) and Voltas India Limited.Coke and PepsiThis joint venture marketed and exchange Lehar Pepsi until 1991, when the use of foreign bell ringers was allowed PepsiCo bought out its partners and terminate the joint venture in 1994. Others take on that firstly Pepsi was banned from import in India, in 1970, for having refused to release the list of its ingredients and in 1993, the ban was lifted, with Pepsi arriving on the market unawares afterwards. These controversies are a reminder of Indias sometimes acrimonious relationship with long multinational companies. Indeed, some argue that PepsiCo and The Coca-Cola Company have been major targets in part because they are well- noticen foreign companies that seize on plenty of attention. COCA-COLAJon Styth Pemberton first introduced the sassy understanding of Coca-Cola in Atlanta, Georgia it was May 1861 when the pharmacist concocted caramel colored syrup in threelegged brass kettle hole in his backyard. He first distributed the pertly product by carrying Coca-Cola in a jug coin enjoys in a deoxyephedrine of Coca-Cola at the soda fountain. Whether by design or accident, carbonated water was teamed with the new syrup, producing a imbibethat was proclaim Delicious and Refreshing. Dr. Pembertons companion and book go byer, Mr. Frank Robinson, suggested the name and penned as Coca-Cola in the unique flowing script that is hush famous worldwide to mean solar day. Dr.Pembertons sell 25 gallons of syrup, shipped in bright scarlet wooden kegs. Red has been a distinctive color associated with the No. 1 hushed drink brand ever since. Forhis efforts, Dr. Pemberton grossed $ 50 and spent $ 73. 96 on advertising, by 1891,Atlanta chemist as a G. Canler had acquired complete ownership of the Coca-Colabusiness. He purchases it from the Dr. Pemberton family for $ 2300. With in 4 year his merchandising flair helped to thrive the consumption of Coca-Cola to over $25 million . Robert W. woodruff become the president of the Coca-Cola company in 1923 and his more than six decades of leadership took the business of commercial success making16 Coca-Cola an impersonateation the world over.Coca-Cola begins as a neer tonic, but candy merchant Joseph A. Biedenharn of disseminated sclerosis was looking for awry to serve refreshingbeverages. He responded to this demand began offering store Coca-Cola using syrup shipped from Atlanta, during a savoury summer in 1894 RESEARCH OBJECTIVE 1. Consumer druthers to buy Coca-Cola and Pepsi. 2. What are the factors would you consider to buy Coca-Cola and Pepsi. 3. What is the strong suit finished which you came to kip down about Coca-Cola and Pepsi. 4. To offer some pay backing and suggestions to the company for the improvement of Itsperformance. read FOR THE STUDY In the present scenario the competitions between the frail drinks increased very(prenominal) high.The companies are struggling a exit poker to keep up their market share in the industry and to improve the sales of their products i. e. the disorder of the company. For this the company has to know their position in the market and the opinion and the fealty ofthe customers and the retailers when compared to their competitor. Because of this reason the comparative analysis is very important and useful to the Company. By the use of comparative analysis the companies can understand the position of the company and the strength of the company in the market. Through the comparative analysis we can understand that what strategies the competitors are using for the increase their sales volume.From the study we can put together the information regarding the opinion of the consumers on the companies comparatively and this provide help to plans for the future to increase the performance of the company and to gain the loyalty ofthe consumers when compared to the competitors. RESEARCH METHODOLOGY We have done descriptive look into to divulge out our objectives. In descriptive investigate we use the primary(a) and aidary data. Research methodology is the way to systematically solve the research problem. The method used for the research is Descriptive Research to befall out our objectives. In descriptive research we use the chief(a) and gageary both data, ensample construct for primary data have been unruffled through probability sampling.Data is Collected through Market survey in Delhi through Well watchful structured questionnaires were used in this study, which includes both closed-ended and few unrestricted questions to get information based on the objective of the research proces s. People of different age group from different frugal background were asked to fill the questionnaire containing 13 questions. Sample Size is taken 40 out of which 4 questionnaires had been rejected due to Mistakes, which was made by the respondents. SOURCE OF COLLECTION OF DATA- All the useful data which were require for this research has been compile through Primary and gameary date. Primary data imperturbable through Questionnaire Secondary data collected through Internet, Magazines and Newspaper ASSUMPTIONS-It is fictive that the elect sample is the representation of whole tribe. It is assumed that information provided by the samples is accurate and topper of theirknowledge. REPRESENTATION OF DATA THROUGH CHART RATIO OF MALE & womanish RESPONDANT pith numbers of respondent were 40 out of which 4 questionnaires is rejected. So final date interpretation is done on the basis of only 36 questionnaires. match no. of respondents 36 grammatical gender estimate Male 30 Fe male 6 Reasons behind choosing the product- Total respondents 36 Preference Number of respondents Taste 28 Advertisements 4 thirsty(p) 5 sonant availability 4 Others 2 ready of advertisement-Total number of respondents 36 charm of advertisements Number of respondents Yes 14 No 22 Brand loyalty- Would you visit another store X, if you do not find it at your store. 71% of the respondents tell that they go to another shop for their brand and 29% of the people verbalise that they dont go to another shop. Presence of pesticides- Total number of respondents 36 Respond No. of respondent Yes 9 No 27 From the questionnaire we came to know that 27 people i. e 75% state they are no pesticides and rest of them 9 people i. e 25% said Yes. INTERPRETATION On the basis research the facts which have come out- Coca-Cola has a market share of 28%.The world between 12- 30 year prefer the booby products, succession universe above to 50 and below 12 prefer soft drinks, and population prefer i n Delhi. Only 39% population only influenced by advertisement, rest 61% population believes that Advertisements are not much effective. 71% population are loyal to words there product. 25% population beliefs there tatty drink have pesticide up to some extent. 65% of population is being influenced by taste only, while 9% population by Advertisements only. RESEARCH FINDINGS As it was 1st research Project of our life, so it gave us lot of experience which will be very helpful in our life. On the basis of that research we find that in incase of beverages people are much influenced by taste rather than Advertisements and other things. e come to know that recent coevals is the biggest consumer of cold drinks than any other. By this research we analyze that male prefer cola drinks, while female prefer soft drinks. Frequency of consume to cold drinks is high of male than female. By combining all the beverage verities we come to know that Thumps up is the market leader with 14 % total m arket share while Pepsi is the second highest market leader with 13% market share. If the Buying decision of consumer is rated 1st preference will go to Taste, 2nd will go to availability, 3rd preference will go to thirsty, 4Th preference will go to Price. CONCLUSION For the purpose of the study, questionnaires were prepared for the Consumers.Care was taken to interview all types of consumers, i. e. , a. assorted age groups b. Males and females In all about 40 consumers were interviewed. The conclusions that one can draw from these answers provided by the consumers showed that marketing activities do form a major part of the decision. genius thing that was common amongst all the consumers who were at one time a day or erst a calendar workweek. The number one factors the influences a customer while buying a soft-drink was taste. This was true for all the consumers who were interviewed. The rest of the conclusions as deducted from the questionnaires are as follows The younger times like soft drinks to the older multiplication. a.Children up to 15 years of age want to have soft drinks up to erst a day. b. Young adults liked to have soft drinks up to 1-2 times a day. c. Adults liked to have soft drinks about once a week. Children favored Coca-Cola. Young adults liked Pepsi. The oldergeneration like Coca-Cola. The reason given for choice of dearies soft drink was taste and easy availability. 90% of the people said that they prefer taste. Most of the people said that television advertising had a more impact on choosing the brand. As everyone know there is a rumor of pesticides, but in our report we came to know that 75% of the people said they dont believe in this rumors and only 9% of the people believe in those rumors.About the brand loyalty most of the consumers 71% said they visit another store if they wint find the preferred brand and 29% said that they not brand conscious rather they depend on availability. RECOMMENDATIONS Though the coke is e njoying larger market share and it is market leader in Indian beverage industry. While with the 46 % market share Pepsi is on the second step. If we are analyzing properly then we find Pepsi is small product portfolio than coke, which is responsible for its second position. Pepsi should increase its product portfolio to capture the Cokes market share. Companies should commission on the taste of the product because 90% population is influenced by taste only. Young generation is the potential consumer so companies should more focus on them. As we find that 40 % population consumes 200ml cold drinks.Which comes in glassbottles, these bottles are being retuned back for switch to companies? Which is incurred again cost of re-transportation. If company endure to supply 200 ml cold drinks in pet bottles (plastic bottles) it will be good for company because 40% of population is using only 200ml. BIBLIOGRAPHY http//www. scribd. com/ physician/48391213/A-PROJECT-REPORT-PEPSI-VS-COCA-COLA ht tp//www. scribd. com/doc/30242566/Coke-vs-Pepsi http//en. wikipedia. org/wiki/Pepsi http//en. wikipedia. org/wiki/Coca_cola http//www. jyd. in/Summer%20Internship%20Projects/Marketing/ change state%20AND%20PEPSI%20LEARN%20TO%20COMPETE%20IN%20INDIA%20By%20Sahil%20Memon. df Business research methods (Zikmund) QUESTIONNAIRE 1. Name- 2. Gender a) Male b) Female 3. What is your age? a) 15-25 b) 26-30 c) 31-40 d) 41-50 4. Do you know these brands (Coca-Cola & Pepsi) a) Yes b) No 5. Which brand would you prefer? a) Coca-Cola b) Pepsi c) Others 6. Which quantity of your cold drink you often purchase? a) 200ml b) 300mlc) 500ml 7. Do you think, pesticides present in Coco-Cola and Pepsi? a) Yes b) No 8. How often you consume Coca-Cola ? a) formerly in a day b) formerly in a week c) twice in a week d) in one case in a calendar month e) When they postulate 9. How often you consume Pepsi ? a) Once in a day b) Once in a week c) Twice in a week d) Once in a month ) When they required 10. Whe n do you consume above preferred brand? a) Travelling b) Party c) Thirsty d) Others 11. Important attribute for buying your above preferred brand ? a) Thirsty b) heart c) Availability d) Price e) Others 12. Give rank to your preferred brand? ___packaging ___taste ___labeling ___price ___availability 13. Through which medium you notice about the above preferred brand? a) Tv ads b) News report card c) Internet d) Other 14. Would you visit another store X, if you do not find it at your store? a) Yes b) No 15. Do you think that Coca-Cola and Pepsi both are abundantly spending on their ad campaigns to guide customers? a) Yes b) No