final marketing project-pepsi

8/13/2019 Final Marketing Project-Pepsi

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PROJECT ON

A STUDY ON MARKETING MIX STRAEGY OF PEPSICO

SUBMITTED BY

PRIYANKA SURYANATH SHARMA

ROLL NO.

74

M.Com - I SEMESTER -II!

"#$%#-#$%&"

UNDER THE GUIDANCE OF

PROF. GANGA SUSHEEL 'ARRIAR

SUBMITTED TO

UNI(ERSITY OF MUMBAI

NIRMALA MEMORIAL FOUNDATION COLLEGE OF

COMMERCE AND SCIENCE

)$ FEET ROAD* ASHA NAGAR* THAKUR COMPLEX*

KANDI(ALI E!* MUMBAI-4$$ %$%.

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DECLARATION

I, Ms. Priyanka S. Sharma of M.Com (Master of Commerce, Semester II) hereby declare

that I have completed the proect on !" St#dy $n Marketin% Mi& Strate%y $f Pepsico '

in the academic year 1*1+.

he information s#bmitted is tr#e and ori%inal to best of my kno-led%e.

/ate of S#bmission. Si%nat#re of St#dent,

( Priyanka S#ryanath Sharma)


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CERTIFICATE

This is to certify that the project titled as " St#dy on Marketin% Mi& Strate%y of PepsiCo

has been completed by Ms. Priyanka Suryanath Sharma of M.Com. (Semester-!

e"amination in academic year #$%#-#$%&.

The information submitted is true and ori'inal to the best of knoled'e.

_____________________

__________________________

(Dr. T. P. Madhu Nair) ` (Prof. Dr. Neha Goel)

Principal Prora!!e Coordina"or

))))))))))))))))

))))))))))))))))

(Prof.Gana #u$heel %arriar) E&"ernal E&a!iner

Pro'ec" Guide

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ACN%*EDGEMENT

ould like to e"tend my 'ratitude to Prof. *an'a Susheel +arriar for pro,idin' 'uidance

and support durin' the course of project. She has been a 'reat help throu'h the makin'

of the project. ould like to thank the ni,ersity of Mumbai for 'i,in' me the

opportunity to ork on such a rele,ant topic.

ould also like to thank the colle'e faculties the librarian and the Principal /r. T. P.

Madhu 0air for their help and others ho are indirectly responsible for the completion

of this project. n addition ould like to take this opportunity to thank our M.Com

Coordinator Prof. /r. 0eha *oel for bein' there alays to 'uide me and for e"tendin'

her full support.

/ate-

Mumbai

)))))))))))))))))))))))))))))))

#ina"ure of #"uden"

(Pri+an,a #. #har!a)

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profitable opport#nities. "s it is said Marketin% thinkin% starts -ith the h#man needs and

-ants2. "part from basic necessities of air, -ater, shelter and clothin%, every person has

stron% desire for recreation and entertainment. hey have stron% preference for partic#lar

brand of basic and services. Marketin% serves as the link bet-een the society?s needs and its

pattern of Ind#strial response. >evera%e ind#stry is one of the fast %ro-in% ind#stries in

India. @e can divide >evera%es into t-o sections i.e. "lcoholic < Aon*alcoholic. hen on*

alcoholic drinks are soft drinks that can be f#rther classified Cola, Bemon, $ran%e, Man%o

and "pple se%ment.

%.# DEFINATION

"ccordin% to me marketin% means, p#sh the prod#ct to the market < p#ll the c#stomer

to-ards the b#siness. @e can say that the main aim of the marketer is to convert the -ant of

the c#stomer to the need of the c#stomer. !h#s marketin% ob is to convert societal needs

into profitable opport#nities. 9ence, Marketin% occ#pies an important position in the

or%aniation of a b#siness #nit. It is one of the important line activities of b#siness operation.

It consists of the o-nership of %oods. Doods are not complete prod#cts #ntil they are in the

hands of the c#stomer. It is the process by -hich prod#cts are made available to the #ltimate

cons#mers from their point of ori%in. It consists of all those activities, -hich are meant to

ens#re the flo- of %oods < services from the prod#cer to the cons#mer. herefore, marketin%

thinkin% m#st start -ith a crystalliation of needs of cons#mer se%ment of -hich the efforts

-ill #ltimately be aimed. In terms of needs, the prod#ct or service m#st be developed or

improved so that #ltimately the prod#ct satisfies s#ch needs of the cons#mer se%ment

involved.

oday marketer, have to take to#%h decisions beca#se today3s market place is venomo#sly

more comple&. /omestic markets, at one time safe from forei%n invaders are no- the happy

h#ntin% %ro#nds of %iant %lobal corporation as -ell as %lobal niche specialists. Maor strides

in technolo%y have considerably shortened time < distance. Ae- prod#cts are la#nched 4P: OF MARKETING!

Marketin% mi& is a by*prod#ct of c#stomer oriented marketin% approach. "fter identifyin%

the market < %atherin% the basic information abo#t it, the ne&t step in the direction of market

pro%rammin% is to decide #pon the instr#ments < the strate%y for meetin% the needs of the

c#stomers < challen%es of rival sellers.

A22o0165 o '.J. S,6o6, ! Marketin% mi& is a combination of fo#r elements s#ch as

prod#ct, pricin% str#ct#re, distrib#tion system < promotional activities #sed to satisfy the

needs of an or%aniation3s tar%et market < at the same time achieves its marketin%

obectives. Fvery b#siness enterprise has to determine its marketin%*mi& for the satisfaction

of the needs of the c#stomers. Marketin% mi& represents a blendin% of decision in fo#r areas

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prod#ct, pricin%, promotion < physical distrib#tion. hese elements are inter*related, beca#se

decision in one area #s#ally affects action in the others.

Marketin% mi& is marketin% mana%er3s instr#ment for the attainment of marketin% %oals. It

is composed of fo#r in%redients, i.e.,

(i) Prod#ct

(ii) price

(iii) promotional activities

(iv) distrib#tion.

hese elements constit#te the core of marketin% system of a firm. " marketin% mana%er

implements his strate%ies < policies thro#%h these instr#ments.

Marketin% mi& represents a blendin% of fo#r elements namely prod#ct, price, promotion irch >eer, Din%er >eer, So#r Bemon, Aone*S#ch Soda @ater. he first carbonated

bevera%e bottles -ere sealed -ith corks held ti%htly in place -ith a -ire bindin%. >eca#se

they had to be stored neck do-n so that the cork -o#ld not dry and allo- carbonation to leak

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a-ay, they -ere man#fact#red -ith ro#nded bottoms. he 9#tcheson Sprin% Stopper

replaced s#ch clos#res. he cro-n cap -as introd#ced in 1;5 and improved versions are

still -idely #sed, altho#%h they are %rad#ally bein% replaced, especially on lar%er containers,

-ith enclosable scre- caps. $ther packa%in% innovations since the mid*1;6s incl#de canned

carbonated bevera%es and no ret#rnable %lass bottles and containers made from ri%id plastics.

9o-ever, an effort is bein% made, often thro#%h provincial le%islation, to increase the #se of

the ret#rnable %lass containers. he ind#stry is re%#lated by federal and provincial a%encies,

three of the most important bein% C$ASJMF7 "A/ C$7P$7"F "GG"I7S (it is

responsible for the Cons#mer Packa%in% and Babelin% "ct), 9F"B9 C"A"/" (-hich

administers both the Good and /r#%s "ct) and Fnvironment Canada (-hich foc#ses on

environmental matters).he introd#ction of diet*carbonated bevera%es has totally chan%ed the

ind#stryKs profile. Many years a%o, in response to increasin% cons#mer diet conscio#sness,

the ind#stry introd#ced the first s#ccessf#l s#%ar*free diet drinks. >#t here E#estions -ere

raised abo#t the safety of this additive and, based on e&istin% scientific data4 9ealth Canada

banned its #se in Canadian commercial G$$/S "A/ >F=F7"DFS. his decision,

estimated to have cost the ind#stry more than L18 million, -as a setback to diet*drink

development. Ao-, a ne- s#%ar*free additive, aspartame, has been approved for the #se in

diet soft drinks, and the cyclamate sit#ation is not e&pected to rec#r beca#se aspartame

consists of amino acids, -hich occ#r nat#rally. H#st before the saccharin ban in 1;88, diet

drinks acco#nted forabo#t 1 of the soft*drink market, follo-in% the ban the diet sharedropped to abo#t +, consistin% of bevera%es partially s-eetened -ith the small amo#nts ofs#%ar. In the year 1;:, the first f#ll year that aspartame -as #sed in Canada, diet drinksincreased by 16.5 of total soft*drink sales, -hile the total soft*drink ind#stry %re- 1.In

1;:8 total soft*drink sales increased 8.+ over 1;:6, -hile diet soft*drink sales increased by

1.8. his sin%le development has enco#ra%ed the stron% %ro-th in the ind#stry.

#.# COMPANY PROFILE

PepsiCo is one of the lar%est GMCD companies there is that is en%a%ed in the food, bevera%e,

and snack ind#stries. PepsiCo is en%a%ed in the snack food, soft drink, #ice, and fast food

franchise b#sinesses. he Company, thro#%h its s#bsidiaries, markets, sells and distrib#tes

vario#s snacks in the Jnited States and internationally, man#fact#res concentrates of Pepsi,

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Mo#ntain /e- and other brands for sale to franchised bottlers in the JS and international

markets and prod#ces, markets, sells and distrib#tes #ices #nder several ropicana

trademarks in the Jnited States and internationally. PepsiCo?s domestic snack food b#siness

is cond#cted by the Grito*Bay Aorth "merica, and its international snack food b#siness is

cond#cted thro#%h Grito*Bay International. he CompanyKs soft drink b#siness operates as

the Pepsi*Cola Company and is comprised of t-o b#siness #nits one is Pepsi*Cola Aorth

"merica and Pepsi*Cola International. In /ecember , the Company anno#nced an

a%reement #nder -hich a s#bsidiary of the PepsiCo -ill mer%e -ith N#aker $ats Company,

and N#aker -ill become a -holly o-ned s#bsidiary of the PepsiCo. N#aker is a lar%e

-orld-ide marketer of foods and bevera%es. he proposed mer%er is s#bect to the certain

closin% conditions, incl#din% approval by shareholders of both companies and re%#latory

approvals. he transaction is e&pected to close in the first half of . PepsiCo is also

operatin% several food franchises incl#din% Pia 9#t, OGC, and aco >ell etc.

P/:1Co- T+/ P,0/6 Com,6=>

PepsiCo is one of the -orldKs lar%est food and bevera%e companies. he companyKs

principal b#sinesses incl#de

%. F01o-L,= :6,2;:

#. P/:1-Co, 8//0,5/:

&. G,o0,/ :o0: 016;:

4. T0o12,6, 312/:

?. 3,;/0 Foo

#.& P/:1Co M1/:o6/:>

5, PepsiCo, Ba#nches Pepsi Bimon in Per#

5, PepsiCo India re*la#nches Mirinda cold drink

6, ropicana deb#ts ropicana P#re a ne- line of 1 premi#m #ices

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6, Ms. Indra Aooyi named Chief F&ec#tive $fficer of PepsiCo as of $ctober

1,6

6, Pepsi si%ns five*year sponsorship rene-al -ith Maor Bea%#e >aseball

Properties makin% Pepsi the $fficial Soft /rink of Maor Bea%#e >aseball

8, "E#afina la#nches "E#afina "live * a lo- calorie, vitamin*enhanced

-ater bevera%e

8, ropicana la#nches he ropicana Gr#it SE#eee, a *calorie drink -ith real

ropicana fr#it #ice

8, Pepsi la#nches /esi%n $#r Pepsi Can Aational Promotion

8, he Indra Aooyi receives the $#tstandin% "merican by Choice "-ard

8, PepsiCo makes in Gort#ne ma%aineKs K1 >est M>" FmployersK list 8, /iet Pepsi Ba#nches in Ae- Book, Ae- "d Campai%n and Ae- "ttit#de * /iet

Pepsi3s More Cola aste

8, Mo#ntain /e- Jnveils #niE#e, limited edition al#min#m bottles

8, PepsiCo named a 8 @orkin% Mother K>est Company for M#ltic#lt#ral

@omenK

8, Pepsi -ins @ebby "-ard for its e&ec#tion of the >est Sports @ebsite

:, Grito*Bay #rkey b#ilds the -orldKs first or%anic -aste treatment facility

:, PepsiCo honored by the Fnvironmental Protection "%ency as -ater efficiency

leader

:, PepsiCo reco%nied as the Good < >evera%e Packa%in% ma%aineKs

:>evera%e Packa%er of the ear

:, Gorbes names PepsiCo amon% its K>est >i% CompaniesK

;, PepsiCo is named to the K>est Companies for M#lti C#lt#ral @omenK list by

Working Mother Ma%aine

;, Pepsi -ins KGootball Promoter of the earK a-ard in Ai%eria for its involvement

-ith the development of the %rassroots football

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;, PepsiCo International introd#ces -orld first non*alcoholic, flavored malt drink,

>ario, into Sa#di market

;, PepsiCo is listed in the top KIdeal Fmployer M>" 7ankin%K in Fortune

ma%aine

;, PepsiCo introd#ces three ne- prod#cts in marketQPepsi Aat#ral, Pepsi

hro-back and Mo#ntain /e- hro-back, all s-eetened -ith nat#ral s#%ar

;, PepsiCo India la#nches he Aimboo by 8Jp, a bevera%e inspired by India3s

favorite lemonade drink

;, PepsiCo introd#ces the first climate*friendly vendin% machines to the J.S.

;, "E#afina la#nches the Fco*Gina >ottle, the li%htest -ei%ht bottle in the market.

1, Grito*Bay commits to makin% 5 of its prod#ct portfolio made -ith all nat#ralin%redients.

1, ropicana introd#ces rop5 Garm stand "pple.

11, in%yi 9oldin% and PepsiCo enter into a%reement to form strate%ic alliance in

China

11, PepsiCo Go#ndation e&pands commitment to @ater.or% -ith L: Million

contrib#tion to scale K@ater CreditK across India

1, /iet Mo#ntain /e-, >risk and Starb#cks ready*to*drink bevera%es oinPepsiCo3s portfolio of billion*dollar brands, brin%in% the total to

1, PepsiCo Potato Chip >rands s#rpass L1 billion in %lobal retail sales

1, Pepsi la#nches first*ever %lobal campai%n, Bive Gor Ao-.

#.4 M1::1o6 ,6 (1:1o6>

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M1::1o6>

$#r mission is to be the -orldKs premier cons#mer Prod#cts Company foc#sed on convenient

foods and bevera%es. @e seek to prod#ce financial re-ards to investors as -e provide

opport#nities for %ro-th and enrichment to o#r employees, o#r b#siness partners and the

comm#nities in -hich -e operate. "nd in everythin% -e do, -e strive for honesty, fairness

and inte%rity.

(1:1o6>PepsiCoKs responsibility is to contin#ally improve all aspects of the -orld in -hich -e

operate *Fnvironment, social, economic * creatin% a better tomorro- than today.

$#r vision is p#t into action thro#%h pro%rams and a foc#s on environmental ste-ardship,

activities to benefit society, and a commitment to b#ild shareholder val#e by makin% PepsiCo

a tr#ly s#stainable company.

P/09o0m,62/ 1+ P30o:/> "t PepsiCo, -e are committed to achievin% b#siness and

financial s#ccess -hile leavin% appositive imprint on the society R deliverin% -hat -e call

Performance -ith P#rpose. $#r approach to s#perior financial performance is the

strai%htfor-ard R drive shareholder val#e. >y addressin% social and the environmental

iss#es, -e also deliver on o#r p#rpose a%enda, -hich consists of the h#man, environmental,

and talent s#stainability.

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P/:1Co (,3/: P+1o:o+=>

$#r =al#es < Philosophy are a reflection of the socially and environmentally responsible

company -e aspire to be. hey are the fo#ndation for the every b#siness decision -e make.

Comm1m/6>

@e are committed to deliverin% the s#stained %ro-th thro#%h empo-ered people actin%

responsibly and b#ildin% tr#st.

S3:,16/ G0o+is f#ndamental to motivatin% and meas#rin% o#r s#ccess. $#r E#est for

s#stained %ro-th stim#lates innovation, places a val#e on res#lts, and helps #s #nderstand

-hether todayKs actions -ill be contrib#te to o#r f#t#re. It is abo#t the %ro-th of people and

company performance. It priorities both makin% a difference and %ettin% the thin%s done.

Emo/0/ P/o/ means -e have the freedom to act and think in -ays that -e feel -ill

%et the ob done, -hile adherin% to processes that ens#re proper %overnance and bein%

mindf#l of company needs beyond o#r o-ns.

R/:o6:1811= ,6 T03:forms the fo#ndation for the healthy %ro-th. @e hold o#rselves

both personally and corporately acco#ntable for everythin% -e do. @e m#st earn the

confidence others place in #s as individ#als and as a company. >y actin% as %ood ste-ards of

the reso#rces entr#sted to #s, -e stren%then that tr#st by -alkin% the talk and follo-in%

thro#%h on o#r commitment to s#cceedin% to%ether.

G31165 P01621/:>@e #phold o#r commitment -ith si& %#idin% principles.

@e m#st al-ays strive to

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C,0/ 9o0 o30 23:om/0:* o30 2o6:3m/0: ,6 +/ o0 / 1/ 16 . -e are driven

bathe intense, competitive spirit of the marketplace, b#t -e direct this spirit to-ard the

sol#tions that benefit both o#r company and o#r constit#ents. $#r s#ccess depends on

the thoro#%h #nderstandin% of o#r c#stomers, cons#mers and comm#nities. o foster

this spirit of %enerosity, -e %o the e&tra mile to sho- -e care.

S/ o6= 0o32: / 2,6 8/ 0o3 o9.he tr#e test of o#r standards is o#r o-n

ability to cons#me and the personally endorse the prod#cts -e sell. $#r confidence

helps ens#re the E#ality of the prod#cts, from the moment -e p#rchase in%redients to

the moment it reaches the cons#merKs hand.

S/,; 1+ 03+ ,6 2,6o0. @e tell the -hole story, not #st -hat convenient too#r

individ#al %oals are. In addition to bein% the clear, honest and acc#rate, -e are

responsible for ens#rin% o#r comm#nications are #nderstood.

B,,62/ :+o0 /0m ,6 o65 /0m.In every decision, -e -ei%h both short*term and

lon%*term risks and benefits. Maintainin% this balance helps s#stain o#r %ro-th and

ens#res o#r ideas and the sol#tions are relevant both no- and in the f#t#re.

'16 1+ 1/0:1= ,6 1623:1o6. @e embrace people -ith diverse back%ro#nds,

traits and the -ays of thinkin%. $#r diversity brin%s ne- perspectives into the

-orkplace and enco#ra%es innovation, as -ell as the ability to identify the ne- market

opport#nities.

R/:/2 o+/0: ,6 :322// o5/+/0.$#r m#t#al s#ccess depends on the m#t#al

respect, inside and o#tside the company. It reE#ires people -ho are capable of -orkin%to%ether as part of a team or informal collaboration. @hile o#r company is b#ilt on

individ#al e&cellence, -e also reco%nie the importance and val#e of team-ork in

t#rnin% o#r %oals into accomplishments

T+/ P/:1Co F,m1=>

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Meet the three maor divisions of the PepsiCo family

PepsiCo "mericas >evera%es.

PepsiCo "mericas Goods.

PepsiCo International.

#.? P E P SICO INDIA

INTRODUCTION>

Pepsi Co entered India in 1;:; and in the short span of a little more than a decade it became

the co#ntryKs lar%est sellin% soft drinks company. he Company has invested heavily in India

makin% it one of the lar%est m#ltinational investors. he %ro#p has b#ilt an e&pansive

bevera%e, snack food and e&ports b#siness and to s#pport the operations are the %ro#p3s of 0+

bottlin% plants in India, of -hich 15 are company o-ned and : are franchisee o-ned.

PepsiCo stays committed to providin% its cons#mers -ith best E#ality bevera%es. Its diverse

portfolio of brands incl#de the fla%ship cola brand Pepsi, /iet Pepsi, 8Jp, Mirinda, Mo#ntain

/e-, Slice fr#it drink, ropicana brand 1 fr#it #ices in the vario#s flavors, "E#afina

packa%ed drinkin% -ater, the Datorade pl#s local brands Behar Fvervess Soda and /#kes

Bemonade and Man%ola.

PepsiCo is also a dominant player in snack food se%ment in India. PepsiCoKs snack food

company Grito*Bay is the leader in the branded potato chip market. It man#fact#res Bay3s

Potato Chips4 Cheetos e&tr#ded snacks, Jncle Chips, O#rk#re and Behar brands, and N#aker

$ats. PepsiCo is one of the lar%est MAC e&porters in the India and its e&port b#siness

consists of three cate%ories a%ri b#siness, commodities and Pepsi system sales. PepsiCo has

made the si%nificant investments -ith the P#nab "%ric#lt#re Jniversity to develop the

comprehensive a%ro*technolo%y pro%ram that has helped tho#sands of the farmers acrossIndia improve the yield of their farms and the E#ality of their a%ric#lt#ral prod#cts. PepsiCo

has levera%ed its kno-led%e in the contract farmin% to develop sea-eed c#ltivation in the

amil Aad# and has partnered -ith the Dovernment of P#nab to help farmers of the state

thro#%h the #tiliation of developed technolo%y for the citr#s farmin%. "s part of its

s#stainable development initiatives, PepsiCo India has been a committed leader in the

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promotion of rain-ater harvestin%, -ater conservation recyclin% and red#ction of effl#ent

dischar%e. PepsiCo has also established the ero -aste centers and PF recyclin% s#pply

chains and assisted victims of nat#ral disasters. PepsiCo stays dedicated in its endeavor to

develop the comm#nity o#treach pro%rams by s#pportin% r#ral -ater s#pply schemes,

administerin% medical camps in villa%es, providin% comp#ters to r#ral schools and creatin%

opport#nities for -omen in r#ral areas thro#%h vocational trainin% as an alternate means

of the livelihood.

#.@ O(ER(IE' OF P E P SICO INDIA

P/ :1Co m1::1o6>

o be the -orldKs premier cons#mer Prod#cts Company foc#sed on the convenience food

and bevera%es. @e seek to prod#ce healthy financial re-ards to the investors as -e provide

opport#nities for %ro-th and enrichment to o#r employees, o#r b#siness partners and the

comm#nities in -hich -e operate and in everythin% -e do, -e strive for honesty, fairness

and the inte%rity.

P/ :1Co 16 I61 , PepsiCo has established its b#siness operations in India in 1;:; and has

%ro-n to become the one of the co#ntry3s leadin% food and the bevera%e companies. $ne of

the lar%est m#ltinational investors in the co#ntry, PepsiCo has established a b#siness, -hich

aims to serve the lon% term dynamic, needs of Indian cons#mers.

Initially PepsiCo has oint vent#re -ith the P#nab %overnment*o-ned P#nab "%ro

Ind#strial $r%aniation and the =oltas India Bimited. his oint vent#re marketed and sold

Behar Pepsi #ntil 1;;1, -hen the #se of forei%n brands -as allo-ed, PepsiCo bo#%ht o#t its

partners and ended the oint vent#re in 1;;0. $thers claim that firstly Pepsi -as banned from

the import in India, in 1;8, for havin% ref#sed to release the list of its in%redients and in

1;;+, the ban -as lifted, -ith Pepsi arrivin% on the market shortly after-ards. hese

controversies are a reminder of IndiaKs sometimes acrimonio#s relationship -ith the h#%e

m#ltinational companies. Indeed, some ar%#e that PepsiCo and Coca Cola company have

been maor tar%ets in part beca#se they are -ell*kno-n forei%n companies that dra- plenty

of the attention.' In +, the Central for Science and Fnvironment, a non %overnmental

or%aniation Ae- /elhi, said that aerated -aters prod#ced by soft drinks man#fact#rers in

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India, incl#din%m#ltinational %iants PepsiCo and tested prod#cts incl#ded Coke, Mirinda,

8Jp, h#msJp, Ganta, and Sprite. CSF fo#nd that the Indian prod#ced PepsiKs soft drink

prod#cts had+6 times the level of pesticide resid#es permitted #nder the F#ropean Jnion

re%#lations, Coca ColaKs + times. CSF said that it had tested the same prod#cts in the JS

and fo#nd no s#ch resid#es. 9o-ever, this -as the F#ropean standard for -ater, not for the

other drinks. Ao la- bans the presence of pesticides in drinks in India. he Coca*Cola

Company and PepsiCo an%rily denied alle%ations that their prod#cts are man#fact#red in

India contained to&in levels far above the norms permitted in developed -orld. >#t an Indian

parliamentary committee, in 0, backed #p CSFKs findin%s and by a %overnment*appointed

committee, is no- tryin% to develop the -orlds first pesticides standards for soft drink

company. Coke and PepsiCo opposed the move, ar%#in% that lab tests are not reliable eno#%h

to detect min#te traces of pesticides in comple& drinks. "s of 5, he Coca*Cola Company

and the PepsiCo to%ether hold ;8 market share of soft drink sales in the India. PepsiCo has

also been acc#sed by the P#th#ssery panchyat in the Palakkda district in the Oerala, India, of

practicin% -ater piracy d#e to its role in the e&ploitation of %ro#nd -ater reso#rces

res#ltin% in the scarcity of drinkin% -ater for the panchayatKs residents, -ho have been

press#rin% the %overnment to close do-n the PepsiCo #nit in the villa%es. In the year 6,

the CSF a%ain fo#nd that soda drinks, incl#din% both the Pepsi and the Coca*Cola, had hi%h

levels of pesticides in their drinks. >oth the PepsiCo and he Coca*Cola Company maintain

that their drinks are safe for the cons#mption and have p#blished in ne-spaper advertisement

that say that pesticide levels in their prod#cts are less than those in other foods s#ch as tea,

fr#it and dairy prod#cts. In the Indian state of Oerala sales and prod#ction of Pepsi*Cola,

alon% -ith other soft drinks, -as banned by the state %overnment in 8, b#t this -as

reversed by the Oerala 9i%h Co#rt merely a month later. Give other Indian states have

anno#nced a partial ban son the drinks in the schools, colle%es and the hospitals. PepsiCo

India and its partners have invested more than JS/1 billion since the company -as

established in the co#ntry. PepsiCo India provides the direct and indirect employment to

15, people incl#din% s#ppliers and the distrib#tors. PepsiCo no#rishes cons#mers -ith a

ran%e of the prod#cts from treats to healthy eats, -hich deliver oy as -ell as n#trition and,

%ood taste. PepsiCo Indians e&pansive portfolio incl#des the iconic refreshment bevera%es

Pepsi, 8 JP, Mirinda and Mo#ntain /e-, in addition to lo- calorie options s#ch as the /iet


21/41

Pepsi, hydratin% and n#tritional bevera%es s#ch as the "E#afina drinkin% -ater, isotonic

sports drinks Datorade, ropicana1 fr#it #ices, and #ice based drinks, ropicana

Aectars, and Slice. Bocal brands Behar Fvervess Soda, /#kes Bemonade and Man%ola add

to the diverse ran%e of the brands.

PepsiCo3s foods company, is the leader in the branded salty snack market and all the Grito*

Bay prod#cts are free of trans*fat and the MSD. It man#fact#res Bays Potato Chips

JncleChipps and the traditional snacks #nder the O#rk#re and Behar brands. he company

si%h fiber breakfast N#aker $ats, and lo- fat and roasted snack options enhance the healthf#l

choices available to the cons#mers. Grito Bays core prod#cts, O#rk#re, JncleChipps and

Cheetos are cooked in 7ice >ran $il to si%nificantly red#ce sat#rated fats and all of

its prod#cts contain vol#ntary n#tritional labelin% on their packets. he %ro#p has b#ilt an

e&pansive bevera%e and foods b#siness. o s#pport its operations, PepsiCo has total of 0

bottlin% plants in India, of -hich 1+ are the company o-ned and ;are the franchisee o-ned.

In addition to, PepsiCo Grito Bay foods division has three state*of*the*art plants. PepsiCo3s

b#siness is based on its s#stainability vision makin% tomorro- better than the today.

PepsiCo3s commitment to the livin% by this vision every day is visible in its contrib#tion

to the co#ntry, cons#mers and the farmers.

So9 D016; M , 0; / 16 I61 , > India is one of the top most five markets in terms of %ro-th of

the soft drink market. he per capita cons#mption of the soft drinks in the co#ntry is

estimated to be aro#nd si& bottles per ann#m in the year +. It is very lo- compared to the

correspondin% fi%#res in JS (6T bottles plant per ann#m).he maor players in the soft

drinks market in India are PepsiCo and Coca*Cola, like else-here in the -orld. Coca Cola

acE#ired the n#mber of local brands like Bimca, h#msJp -hen it entered in Indian market

for the second time. Pepsi Co3s soft drink portfolio also consists of the Miranda and 8Jp

alon% -ith the Pepsi. he market share of each of the company is more or less same, tho#%h

there is a conflict in the estimate E#oted by the different so#rces.he maor in%redient inthe soft drink is -ater. It constit#tes close to ;1 of the soft drink content. "dded to this, thedrink also contains s-eeteners, Citric "cid, Malice acid, Color, Preservative, "nti $&idant.

1


22/41

T+/ P/:1Co F,m1=

Meet the fo#r maor divisions of the PepsiCo family PepsiCo "mericas >evera%es, PepsiCo

"mericas Goods, PepsiCo F#rope, PepsiCo Middle Fast and "frica.

1. PepsiCo "mericas >evera%es

. PepsiCo "mericas Goods

+. PepsiCo F#rope

0. PepsiCo "sia, Middle Fast < "frica

P/:1Co Am/012,: B//0,5/:

Pepsi -as fo#nded in 1:;: by Caleb >radham, a Ae- >ern, Aorth Carolina, dr#%%ist, -ho

first form#lated Pepsi*Cola.

oday, >rand Pepsi is part of a portfolio of bevera%e brands that incl#des carbonated soft

drinks, #ices and #ice drinks, ready*to*drink teas and coffee drinks, isotonic sports drinks,

bottled -ater and enhanced -aters. PepsiCo "mericas >evera%es (P">) has -ell kno-n

brands s#ch as Mo#ntain /e-, /iet Pepsi, Datorade, ropicana P#re Premi#m, "E#afina

-ater, Sierra Mist, M#%, ropicana #ice drinks, Propel, So>e, Slice, /ole, ropicana

-ister and ropicana SeasonKs >est.

In 1;; P"> formed a partnership -ith homas H. Bipton Co. to sell ready*to*drink tea

brands in the Jnited States. Pepsi*Cola also markets Grapp#ccino ready*to*drink coffee

thro#%h a partnership -ith Starb#cks.

ropicana -as fo#nded in 1;08 by "nthony 7ossi as a Glorida fr#it packa%in% b#siness. In

1;50 7ossi pioneered a paste#riation process for oran%e #ice. Gor the first time, cons#mers

co#ld enoy the fresh taste of p#re not*from*concentrate 1 Glorida oran%e #ice in a

ready*to*serve packa%e. he #ice, ropicana P#re Premi#m, became the companyKs fla%ship

prod#ct. PepsiCo acE#ired ropicana, incl#din% the /ole #ice b#siness, in "#%#st 1;;:.

So>e became a part of P"> in 1. So>e man#fact#res and markets an innovative line of

bevera%es incl#din% fr#it blends, ener%y drinks, dairy*based drinks, e&otic teas and other

bevera%es -ith herbal in%redients.

Datorade thirst E#encher sport drinks, -as acE#ired by he N#aker $ats Company in 1;:+

and became a part of PepsiCo -ith the mer%er in 1. Datorade is the -orldKs first isotonic

sports drink as is backed by 0 years of science. Created in 1;65 by researchers at the


23/41

Jniversity of Glorida for the schoolKs football team, he Dators, Datorade is no- the

-orldKs leadin% sportKs drink.

P/:1 B//0,5/: Com,6=

$n Gebr#ary 6th, 1, PepsiCo completed its mer%ers -ith P"S and P>D to stren%then its

Aorth "merican bevera%e b#siness. he Aorth "merican bottlin% operations of P"S and

P>D are no- an operatin% #nit of PepsiCo kno-n as Pepsi >evera%es Company. P>C

operates in the Jnited States, Canada and Me&ico and encompasses appro&imately 85

percent of PepsiCoKs Aorth "merican bevera%e vol#me. P>CKs diverse portfolio incl#des

some of the -orldKs most -idely reco%nied bevera%e brands, incl#din% Pepsi, Mo#ntain

/e-, Sierra Mist, "E#afina, Datorade, So>e, Bipton, and "mp Fner%y. P>C also

man#fact#res and distrib#tes third*party brands in key local markets s#ch as /r Pepper,

Cr#sh, 7ock Star and M#scle Milk. he operatin% #nit is headE#artered in @estchester

Co#nty, Ae- ork. 7ead more abo#t the Pepsi >evera%es Company.

1. PepsiCo "mericas Goods

. PepsiCo F#rope

PepsiCo "mericas Goods (P"G) is PepsiCoKs food and snack b#siness in Aorth and So#th

"merica. Its portfolio of b#sinesses incl#des Grito*Bay Aorth "merica, N#aker Goods rail.

PepsiCo F#rope is the leadin% food and bevera%e company in F#rope employin% 0+, in

the re%ion. he company has a presence in 05 co#ntries in F#rope and has a broad ran%e of

offerin%s incl#din% Grito Bay Snacks, Pepsi*Cola bevera%es, Datorade sports drinks,

ropicana #ices and N#aker foods.

he company has invested over L+ billion in the re%ion over the last + years incl#din% the

acE#isitions of Bebedyanasky, a pop#lar #ice company in 7#ssia, and Sandora, a Jkrainian

#ice company.

Some of the most pop#lar prod#cts in the re%ion incl#des @alkers Crisps, N#aker $ats, Pa-

7id%e, Pepsi, /iet Pepsi, Pepsi M"W, Pepsi 7"@, 8JP, Copella, /oritos, Datorade, 7ed

Sky, = @ater, Planet B#nch, Bays, Cheetos, Smiths, /#yvis, Snack*a*Hacks, N#aker Cr#esli,

Booa, -istos, Solinki.

he company has made lar%e investments in the re%ion in its healthier for yo# portfolio

-hich incl#de

More than million F#ros in a fla%ship F#ropean 7


26/41

have introd#ced a ran%e of dry roasted n#ts -ith + less fat

In the JO -e are abo#t to la#nch a K;; Calorie or less snacks ran%e

Pepsi Ma&, no s#%ar, f#ll flavors soft drink in the JO and the Aordics

P/:1Co A:1,* M1/ E,: A9012,

PepsiCo "sia, Middle Fast < "frica (!"MF"') makes, markets and sells a n#mber

of leadin% snack food brands incl#din% Bay3s, O#rk#re, Chips, /oritos, Smith3s,

Cheetos, 7ed 7ock /eli and 7#ffles, thro#%h consolidated b#sinesses as -ell as

thro#%h no controlled affiliates. G#rther, either independently or thro#%h contract

man#fact#rers, "MF" makes, markets and sells many N#aker*brand cereals and

snacks. "MF" also makes, markets and sells bevera%e concentrates, fo#ntain syr#ps

and finished %oods, #nder vario#s bevera%e brands incl#din% Pepsi, Mirinda, 8JP and

Mo#ntain /e-. hese brands are sold to a#thoried bottlers, independent distrib#tors

and retailers. 9o-ever, in certain markets, "MF" operates its o-n bottlin% plants

and distrib#tion facilities. In addition, "MF" licenses the "E#afina -ater brand to

certain of its a#thoried bottlers. "MF" also, either independently or thro#%h

contract man#fact#rers, makes, markets and sells ready*to*drink tea prod#cts thro#%h

an international oint vent#re -ith Jnilever (#nder the Bipton brand name).

6


27/41

CHAPTER &

MARKETING MIX STRATEGY OF PEPSICO

&.% MARKETING STRATEGY AT PEPSICO>-

E,:/06 E30o/* M/


28/41

PRODUCT

People satisfy their needs and -ants -ith prod#cts and services, a prod#ct is anythin% that

can be offered to a market to satisfy a need or -ant* he concept of prod#ct is not limited to

physical obects * anythin% capable of satisfyin% a need can be called a

Prod#ct. 9aidri >evera%es is the company that has taken #p the franchise to prod#ce Pepsi

for the area of Maharashtra and /elhi. he prod#ction capacity of the plant is to prod#ce

8+, cases of 0 bottles of 5*ml. Gor this reason the company has three lines of

prod#ction to f#lfill the ever*%ro-in% demand. Pepsi is one of the core prod#cts of the

or%aniation and the company p#ts in a lot of effort to retain its ima%e thro#%h its hi%hly

professional team. he members of the or%aniation -ork day and ni%ht makin% every

possible effort to attain the or%aniational %oals.

P RICE

Price is the amo#nt of money the c#stomers are -illin% to pay to obtain that partic#lar

prod#ct. Providin% E#ality prod#cts at the lo-est possible price had al-ays been one of

the main concerns of Pepsi. $ne of the -ays by -hich the company has been able to assist

this effort is by increasin% the #se of ine&pensive and recyclable plastic bottles. he

%overnment policy, at times, makes a lot of difference as the %overnment may increase the

frei%ht char%es, the prices of %lass,or the prices of steel. h#s the overall price of the prod#ct

also %ets affected. he price of Pepsi Cola is very reasonable as compared to other drinks and

the

Mana%ement makes every effort to make the prod#ct at the lo-est possible cost b#tthe

hi%hest E#ality. Pepsi -ants its prod#ct to be available to all P7ICIAD S7JCJ7F*

PL ACE

Place incl#des the company activities that make the prod#ct available to tar%etcons#mers.

Pepsi Cola is placed in the market accordin% to the e&tent of the tar%etmarket located in that

:


29/41

partic#lar %eo%raphical area. 9aidri >evera%es place their prod#ct in the market -ith the

help of its indirect distrib#tion net-ork. he retail stores are spread all aro#nd the franchised

area in order to ens#re the availability of the prod#ct all the year ro#nd. he maor retail

stores located in Maharashtra and /elhi are in the >l#e "rea, Hinnah S#per Market, S#per

Market, and in almost every sector of Islamabad. he entire /FB9I Cantonment and the

entire city as -ell have many retail o#tlets -here Pepsi is available in ab#ndance. he

distrib#tion net-ork also -orks accordin% to the promotional campai%n or the season. Gor

e&ample, in the cricket season the company tries to make the prod#ct available in areas -here

Cricket is bein% played.

Pepsi covers almost ;5 of total area.

It sells thro#%h local retailers.

It is available every-here

.P ROMOTION

Promotion means activities that comm#nicate the merits of the prod#ct in order to pers#ade

the tar%et c#stomers to b#y it. Promotion plays a vital role in the s#ccessor fail#re of a

prod#ct. Promotion of the ri%ht prod#ct at the ri%ht time is an ideal sit#ation for a company.

Pepsi is one of those prod#cts on -hich the franchisers spend millions of /ollarsX7#pees for

its promotion. 9aidri >evera%es invest a h#%e amo#nt of money on the promotional

campai%ns of Pepsi. here are different -ays of promotin% a prod#ct thro#%h retailin%,

personal sellin%, and advertisin%. he company stron%ly emphasies on advertisements as the

other t-o methods area not m#ch effective in attractin% the attention of their tar%et a#dience.

9#%e amo#nt of money spend on advertisement on .=, Ma%aines, "nd >anners. It sponsor

sea-ard f#nctions and sports activities.

&.& MARKETING SYSTEM

P0o32>

!Pepsi' carbonated -ater, s#%ar, added flavor packa%e < drinkin% -ater. Introd#ction of

Aat#ral color drink is on the cards.

Po:11o6165>

;


30/41

>esides retailin%, the company foc#ses on instit#tional sales, special event to make the

prod#ct available for additional milea%e.

P012/>

he company maintains a steady price d#e to ti%ht competition. It enco#ra%es more retail

mar%in as compared to the competitors. 9o-ever, company does not believe in

compromisin% the E#ality of the prod#ct.

P0omo1o6>Schemes < incentives are also %iven keepin% on eye on the competitive activity

from time to time. Company has also introd#ced a cons#mer a-areness scheme to create

better brand a-areness of the prod#ct.

P38121=> " company as promotional meas#re for val#e sale %ives p#blicity. "deE#ate point

of p#rchase materials, adeE#ate display materials < participation in important local festival

are also a part of promotional meas#re of the company.

C+,66/ o9 D1:01831o6> /istrib#tors are appointed all over $rissa for marketin% the

prod#ct. C#stomer e&ec#tives appointed by the company s#pport them.

M,0;/165 S0,/5=> >esides stampin% the #rban market, the company3s foc#s is on

penetration in the periphery r#ral area.

T+/ M,639,230165 P0o2/:: > he process of man#fact#rin% of aerated -ater (Soft /rinks)

< fr#it H#ice #nder PepsiCo >rand is divided into mainly five parts s#ch as

@ater reatment

Syr#p Makin%

>ottle @ashin%

Gillin%

Cro-nin% < Codin%

estin% of the prod#ct

',/0 T0/,m/6>

@ater reatment is very essential in soft drinks plant as the nat#re < E#ality of -ater varies

from place to place. o set #niform < standard -ater the process of treatment is carried on.

he -ater taken from bore -ell by the help of -ater p#mp < pipe lines are collected in a

+


31/41

stora%e tank -here is pre*chlorinated by chlorinate < then by the help of pipelines comes to a

treatment tank called coa%#lator tank -here this -ater sol#tion of different stren%th of

bleachin% po-der, ferro#s s#lphate, hydrate line are added thro#%h dosin% p#mp to red#ce

alkalinity, hardness < kill the bacteria. " mechanical stirrer mi&es the chemical < then the

s#spended -ater settles do-n as sl#d%e < clean -ater passes thro#%h retention tank. Grom

this tank, the -ater passes thro#%h sand filter containin% fine sand < pebbles < carbon filter

contains %ran#lar carbon < finally thro#%h -ater polisher, micron filter, J= lamp to ens#re

clear < sanitary -ater for #se. G#rther -ater #sed in the bottle -asher < boiler needs

softenin%. Gor this p#rpose the -ater from stora%e tank, after passin% thro#%h t-o filter beds

containin% fine sand < %ran#lar carbon happens.

hro#%h a bed of resin -here it is softened, this soft -ater is essential for #se in bottle

-asher to red#ce scale formation inside the machine.

S=03 M,;165 >Gor syr#p makin% of a partic#lar brand, collect E#antity of s#%ar, -ater

activated carbon (Po-der) < 9yflo- s#per cell kno-n as filter aid are taken into a s#%ar

dissolvin% tank -hich is specially desi%ned makin% a vac##m space to enter steam < also

fitted by a motor -ith a%itator. S#%ar syr#p called ra- syr#p is prepared by developin% the

s#%ar -ith contin#o#s stirrin% < heatin% by steam s#pplied by oil*fired boiler. his hot syr#p

-ith the help of a p#mp is filtered thro#%h a filter press attach -ith a series of E#ality filter

paper to separate o#t carbonated particles.

Bo/ ',:+165> >ottle @ashin% is an important part in soft drink plant. he emptied

d#rable < ret#rnable bottles are #sed < ret#rned from market in plastic crates are fed to

bottle -ashin% machine. he machine do#ble end system -ith circ#lar chin to carry the

bottles ca#stic soda, tri*sodi#m phosphate < sodi#m*%l#conate are added to the ca#stic tank

filled in -ith -ater heated by steam s#pplied by the boiler. he empty bottles enter to the hot

ca#stic tank in one end < after bein% cleaned by the hot ca#stic sol#tion < finally -ashed

-ith -ater thro#%h spray*ets fitted are dischar%ed in other end. hen -ashed bottles pass on

conveyor chain a%ainst laminated board for f#rther inspection in the direction fillin%

machine.

F1165> Ginished syr#p


32/41

thro#%h C$ manifold tank to #se reE#isite E#antity of %as. he syr#p passes thro#%h P9F,

-hich is cooled itself by circ#lation of chilled, %lycol s#pplied chillin% compressor. o r#n

the machine G* %as is #sed. he syr#p bein% chilled easily mi&es -ith C$%as < enters to

the filter for bottlin%. he filter is fitted -ith fillin% valves < lift Cylinders.

C0o6165 Co165> A9/0bevera%e is filled in bottles it immediately %oes to the cro-ner

-here -ith the help of cro-n crock the bottles are sealed to protect the carbonatin%, flavor,

o#tside contamination < spoila%e till the contained bevera%e is cons#med.

hen sealed bottles passed on the conveyor chain are coded by a codin% machine on their

-ay to o#t end. he sealed bottles are inspected properly a%ainst inspection li%ht -hile

passin% thro#%h the conveyor fitted -ith SS chain. he empty plastic crates passin% thro#%h

a conveyor enter to crate -asher machine < it is -ashed < moves thro#%h the conveyor

-here finished prod#cts are acc#m#lated. hen the prod#cts are kept in plastic crates, -hich

are d#rable in nat#re < ret#rnable by b#yer, p#t on palates < sent to shippin% for shipment.

T/: o9 P0o32:> Ginally the finished syr#p d#rin% bottlin% is tested in laboratory to meet

the permanent < also to %et standard < E#ality prod#cts.

&.4 P/09o0m,62/ 1+ P30o:/

Performance -ith P#rpose artic#lates PepsiCo IndiaKs belief that its b#sinesses areintrinsically connected to the comm#nities and -orld that s#rro#nds it. Performance -ith

P#rpose means deliverin% s#perior financial performance at the same time as -e improve

the -orld.

o deliver on this commitment, PepsiCo India -ill b#ild on the incredibly stron%

fo#ndation of achievement and scale #p its initiatives -hile foc#sin% on the follo-in% 0

critical areas that have a b#siness link and -here -e believe that -e can have the most

impact.

PepsiCo India contin#es to replenish -ater < e&pand its e&pertise in -ater conservation

PepsiCo

PepsiCo India3s "%ri*Partnerships -ith farmer3s helps farmers across the co#ntry earn

more.

+


33/41

PepsiCo India contin#es to convert -aste to -ealth, to make o#r cities cleaner. his

a-ard -innin% initiative -ill establish ero solid -aste centers in districts thro#%ho#t.

PepsiCo India -ill stay committed to the health < -ell*bein% of children. It -ill contin#e

to provide children -ith a healthy < f#n portfolio -hile sim#ltaneo#sly tacklin% the

calories o#tside of the eE#ation by e&pandin% its %ets an active pro%ramme for kids

especially for school %oin% children.

P/:1Co o5o:

PFPSI SF"S$A3S >FS

/IF PFPSI BIP$A ICF F"

PFPSI $AF 7$PIC"A" HJI

PFPSI M"W D"$7"/F

S">7I"S 7JGGBFS

G7"PPJCCIA$ 8JP

MI7IA/" B"3S

M$JA"IA /F@ /$7I$S

SIF77" MIS /$BF HJICF

++


34/41

"NJ"GIA" $SI$S

7$B/ D$B/ S$>F

P/:1Co B0,6:

P/:1 he mother prod#ct. It is a carbonated -ater.

S12/ is a line of fr#it*flavored soft drinks.

7 U is a brand of a lemon*lime flavored non caffeinated soft drink.

M1016, is a brand of soft drink available in fr#it incl#din% oran%e flavors.

Mo36,16 D/ is a caffeinated, s-eet, citr#s flavored soft drink prod#ced.

A23,916, Mineral @ater

&.? SEGMENTATION OF MARKET

" market se%ment consists of a %ro#p of c#stomers -ho share a similar set of needs and

-ants. 7ather than creatin% the se%ment the marketer3s task is to identify them and decide

-hich one to tar%et. Beadin% soft drink company Pepsico follo- the similar se%mentation

strate%y for tar%et marketin%.

MASS MARKETING

9o-ever in some of its pop#lar prod#ct follo- the mass marketin% strate%y. In this type of

se%mentation, Pepsico tar%et the -hole market and not any partic#lar se%ment of the

pop#lation.

TARGETED MARKETING"ltho#%h the tar%eted %ro#p of the company is the -hole pop#lation, they -ant to earn more

reven#e from a se%ment than their other reven#e %enerator so#rces. Gor this, they

7eco%nie follo-in% bases for se%mentation

+0


35/41

GEOGRAPHICAL

REGION

P/:12o treat hot co#ntries s#ch as "sia, Middle Fast and "frican differently in comparison

to cold co#ntries. "s in tropical co#ntries, cons#mption of soft drinks is 8in s#mmer and

+ in -inter season -hile in FJ7$PF"A co#ntries its cons#mption is almost #niform. So

soft drink companies prefer different marketin% strate%ies in "sian and F#ropean co#ntries.

In co#ntries like India and Pakistan, these companies invest h#%e reso#rces in the season of

s#mmers, and their tar%et area is domestic #sers, resta#rants, school and colle%e canteens and

even r#ral chapels. @hile in -inter season their tar%et is mainly party #sers and hi%h*income

%ro#p cons#mers.

RURAL (S. URBAN MARKET

Pepsico Company is one of the first %lobal maors to have spotted the potential spin offs from

the co#ntry3s r#ral market. Pop#lation of 7#ral sector is more conscio#s more abo#t the price

-hereas Pop#lation of Jrban sector is more conscio#s abo#t the E#ality and brand name of

the prod#ct. So Pepsico in ear brin% the ml bottle at 7s.5 specifically tar%eted at

the r#ral sector so that soft drink can take place of the local

drink like lemon, s#%arcane #ice and ea etc. >oth the companies Coca*Cola and Pepsico

have adopted different marketin% strate%y for r#ral and #rban areas

DEMOGRAPHIC SEGMENTATION

AGE

India is considered to be a yo#n% co#ntry i.e. avera%e a%e of Indian pop#lation is less +:

years. h#s tar%etin% yo#n% %eneration can be a beneficial marketin% strate%y for soft drink

Companies. In fact this is the case, all the maor brands like Pepsico, coca cola, and th#mps

#p, mainly tar%et yo#n%er %eneration in India. In F#rope, as avera%e pop#lation is older

than "sian co#ntries, Coca cola tar%eted the older %eneration of the pop#lation. Similarly inJS", Pepsico tar%eted the %eneration W (yo#n%er %eneration) as they comprises maority of

the pop#lation and they positioned Pepsico in the mind of yo#th that Pepsico is for the yo#th

GENDER

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Dender based se%mentation is very important. "s taste of male and female is different. Bet3s

take the e&ample of mo#ntain de- is promoted as masc#line soft drinks -hile Ganta are

havin% li%ht taste and mainly tar%eted for lovin% birds, ladies, and children. In Pepsico,

Miranda3 oran%e flavo#r is pop#lar amon% Badies, %irls, and children.

BRAND RE(ITALIATION

o recover and reposition brand in mind of cons#mer -hen it is not -orkin% s#ccessf#lly is

kno-n as >rand 7evitaliation. So there is an interestin% e&ample ho- brand repositionin%

helps in recoverin% and %ro-th of the prod#ct. Pepsico initially introd#ced Mo#ntain /e- in1;6; and marketed it -ith the co#ntrified ta%line !ahoo Mo#ntain /e-'Y It3ll tickle yo#r

in-ards.' >y the 1;;s, the brand -as lan%#ishin% on store shelves despite an attempt to

evolve the ima%e -ith o#tdoor action scenes. o t#rn the brand aro#nd, Mo#ntain /e-

#pdated the packa%in% and la#nched ads feat#rin% a %ro#p of anonymo#s yo#n% males*the

!/e- /#des' participatin% in e&treme sports s#ch as b#n%ee #mpin%, skydivin%, and

sno-boardin% -hile cons#min% mo#ntain de- the brand slo%an became !do the /F@'. he

brand3s s#ccessf#l p#rs#it of yo#n% soda drinkers led to mo#ntain de- challen%in% diet coke

to become the n#mber three sellin% soft drink in terms of market share by .

&.@ PEPSICO POSITIONING

Girstly the Pepsico in "merica try to position its prod#ct for the society as -hole and for the

p#rpose of refreshment, -hich can be clearly visible from their advertisement slo%ans like

any -hether is Pepsico -hether'

the li%ht refreshment !

be sociable, have a Pepsico !

his positionin% strate%y they follo-ed #p to 1;6 and after analysin% that it is very diffic#lt

to capt#re -hole pop#lation as -hole. So Pepsico after 1;6 started tar%eted marketin%.

Pepsico tar%eted the yo#th section and position there prod#ct as a necessity for yo#th and

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Pepsico advertisement slo%an after 1;6 try to position Pepsico as the brand for yo#th -hich

are clearly visible from there advertisement as follo-

no- its Pepsico for those -ho thin% yo#n%'

come alive, yo#3re in Pepsico %eneration !

yo#3re %ot a lot to live and Pepsico3

yeh hai yo#n%istaan meri aan' (in India)

aste the once that3s forever yo#n%'

In the 1;6s and early 1;8s, Pepsico -as a m#ch more a%%ressive and innovate company

than coke. In this period Pepsico o#tflank coke to s#rvive. IA early 1;85s Pepsico introd#ced

the Pepsico challen%e marketin% campai%n -here Pepsico set #p a blind tastin% bet-een

Pepsico*cola In this Pepsico started direct road sho- taste competition in -hich t-o %lass ofsoft drink one is Pepsico and another is Coke is %iven to person not kno-n by him -hich

%lass contain -hich soft drink and after tastin% both the %lasses they ask -hich soft drink is

havin% better taste. In this competition Pepsico said : of people like Pepsico taste over

Coke. Pepsico took this a %reat advanta%e of the campai%n -ith television commercial

reportin% the test res#lts to the p#blic. So thro#%h this competition Pepsico is able to position

itself in the mind of c#stomer that Pepsico have better the taste than coke.

Pepsico -as parted -ays -ith Shah 7#kh khan, Sachin tend#lkar, 7ah#l dravid,

So#rav %an%#ly, Mahender Sin%h dhoni, 7anbir kapoor, /eepika pad#kone, Ishant sharma,

7ohit sharma, Shreeshant and =irender seh-a% to stren%then its 'yo#n%istaan' bri%ade.

Pepsico si%ned "sin (of Dhaini fame) to take -ar to oran%e flavo#r cate%ory. Pepsico had

tied #p -ith Chennai s#per kin%s for its 8#p brand, -hich is the most preferred drink there.

Pepsico has also si%ned on ele%# movie actor 7am charantea as part of its yo#n%istaan

campai%n to endorse Pepsico in "ndhra Prad

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&.7 S'OT A6,=:1: o9 P/:1Co

STRENGTH OF PEPSICO INDIA>

Itsbrand.

9#%e market covera%e, company e&istence not only in #rban area b#t also in the r#ral

area

Bar%e n#mber of prod#ct line to satisfy cons#mer.

=erity of scheme for the retailer thro#%ho#t the year. So, that retailer -ill earn h#%e

profit and also %et satisfaction after sellin% PepsiCo prod#ct.

Company also %ives time to time schemes for the cons#mer. So that, final cons#mer

interest for rep#rchase


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OPPORTUNITY OF PEPSICO INDIA

Pepsi co#ld develop ne- prod#cts or prod#ct desi%nin% of Pepsi

>rand for the >>S7 market

Competitors have poor prod#cts s#ch as Ganta, limca. Fnd*#sers respond to ne- ideas, s#ch as la#nch other flavor of slice.

Pepsi have a %reat chance to e&tend to r#ral area.

Ae- specialist applications, s#ch as Sponsorship, trade fair, free sample.

THREATS OF PEPSICO INDIA

Market demand very seasonal.

7etention of key staff is critical.

7etailer distract from core b#siness, s#ch as retailer demanded to keep slice only and

not for Pepsi.

Be%islation co#ld impact4 mean local ta&ation policy and b#siness policy of state -

Marketin%* Philip Ootler

Marketin% mana%ement 7aan Sa&ena

'/8 :1/: >-

httpXX---.pepsico.comXCompanyXPepsiCo*=al#es*and*Philosophy.html

httpXX---.pepsico.comXCompanyX$#r*Mission*and*=ision.html

httpXX---.pepsico.comXCompanyXhe*PepsiCo*GamilyXPepsiCo*"mericas*>evera%es.html

final marketing project-pepsi

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