CHALLENGES FACED BY PEPSI1. The sales and promotion of Pepsi is highly effected by opinion leaders like Baba Ramdev, thus posing a big threat of losing its customer base.2. The pressure from government is forcing Pepsi to research and develop a healthier Pepsi which may not be to the liking of the existing customers.3. Its arch rival Coca-Cola has been dominating the marketing space by its innovative campaigns which Pepsi has found very tough to break.4. Pepsi faces a lot of legal claims and accusations which sometimes are baseless but still spoils the image of the company. Pepsi has to find a way to overcome these legal issues.5. Setting up a new plant to cater to a market close to the setup is a huge challenge as Pepsi requires huge amounts of water and many a times local villagers complain that government gives more water to these companies and this impacts the water supply to the villages. This creates a huge opposition against the company.6. Indian consumers hold their traditions in very high prospects and thus the substitutes for Pepsi are plenty and this worsens the situation for Pepsi. In fact water is the biggest substitute for Pepsi. It is essential and available at a much cheaper price (in some cases even free) than Pepsi.