PEPSICO ASSIGNMENT

Submitted by: Nilotpal Chakraborty

INTRODUCTION

PepsiCo is a global food and beverage leader with net revenues of more than $65 billion and a product portfolio that includes 22 brands that generate more than $1 billion each in annual retail sales.

Pepsi is a hundred-year-old brand loved by over 200 million people worldwide.

HISTORY Pepsi a soft drink brand is actually a formula concocted in 1886 by Caleb Bradman in US.

He formulated a blockbuster of a digestive drink and decided to call it Brad’s drink. The potion was to become Pepsi Cola in 1898, and eventually, Pepsi in 1903.

Since its inception, Pepsi has always been at the forefront of the beverage industry and has come up with revolutionary concepts such as Diet Pepsi, 2l bottles, recyclable plastic cola bottles and the enviable My Can.

ENTRY IN INDIA

PepsiCo entered India in 1989 and in a short period, has grown into one of the largest and fastest growing food and beverage businesses in the country

It entered 5 years prior to Coca-Cola, and at the time of entry it made a partnership with RP Goenka Group, then later had a JV with Punjab Government

In 1990 due to policy changes “Pepsi” became a standalone organization

MISSION AND VISION

• Our mission is to be the world's premier consumer products company focused on convenient foods and beverages. We seek to produce financial rewards to investors even as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in everything we do, we strive for honesty, fairness and integrity.

MISSION

• Our vision is put into action through programmes and a focus on environmental stewardship, activities to benefit society and a commitment to build shareholder value by making PepsiCo a truly sustainable company.

VISION

PRODUCTS

There are 2 major divisions in PepsiCo:

The food division is Frito-Lays

Food Beverages

PRODUCTS

Food Division: – Aliva

– Cheetos

– Kurkure

– Lay’s

– Lehar Namkeen

– Quaker Oats

– Uncle Chipps

BeverageDivision: – 7UP – Aquafina – Duke's – Gatorade – Mirinda – Mountain Dew – Nimbooz – Pepsi – Slice – Tropicana

COMPETITORS There can 2 types of competition:

Direct Competition Beverages:

– Coca-Cola

Indirect Competition Beverages :

– Water

– Fresh Juices

– Packaged Juices

– Milk

Direct Indirect

COMPETITIORS

Direct Competition Beverages:

– Balaji Chips

– Oats of other brands

– Bingo

– Local chips etc.

Indirect Competition Beverages :

– Biscuits

– Snacks

COMPETITORS

TARGET AUDIENCE

The major target audience for Pepsi is generic

Both the urban and rural areas can find its presence there

There are different products for different category of people

Example: Mountain Dew is targeted for adventurous people, Gatorade for fitness persons etc.

But basically the Brand targets “Youth”

This can be seen by its Advertising and communication methods

Pepsi has always fuelled youth passions like cricket, Bollywood, music and now football. Youth icons like MS Dhoni, Ranbir Kapoor, Didier Drogba, Virendar Sehwag, Sachin Tendulkar, Priyanka Chopra and Deepika Padukone have endorsed Pepsi since its launch in India.

ADVERTISING

ADVERTISING

TV Ads

Digital Marketing

PR and Publicity by Movies

Sales Promotion

Events and Experiences

Word of Mouth

EXAMPLES IN MARKETING COMMUNICATION

• Pepsi Changed the Game during the 2011 cricket world cup by challenging convention, celebrating the unorthodox and by becoming the official sponsor of everything that was unofficial about the sport! Change the Game even as a thought has gained enormous popularity and generated tremendous buzz.

Advertising

• Taking the same theme forward in 2012, Pepsi changed the game yet again by taking the lead in celebrating the exciting new platform of football. Having brought the biggest international football stars and pitching them against the mighty Indian cricketers in a classic faceoff for Pepsi – is something which only a brand like Pepsi can deliver.

Events

Famous examples:

– Yehi hai Right Choice Baby

– Yeh Dil Mange More

– Yeh Pyaas Hai Badi

– Keep It Cool campaign

– Har pal banaye magical, lays be a little dil logical

– Dar Ke Aagey Jeet Hai

These were the various TV ad campaigns

Along with same it uses series of sales promotion, events and movies to promote

It also comes up with Gorilla War with Coca-Cola

EXAMPLES IN MARKETING COMMUNICATION

DISTRIBUTION CHANNEL

Pepsi uses small retailers to cover Indian landscape

It uses the hub and spoke strategy along with same

SWOT

1.) Youth centric brand 2.) Long and strong market

presence world wide 3.)Multiple packaging sizes and

variants to please various customers

4.) Strong distribution

Rural differentiation not there compared to Coca Cola

2.) Low presence in Social Media

3.) Aerated drinks are considered unhealthy

1.) It has variety of products so it has lessened indirect

Competition 2.) Target more of rural areas

and Family audience 3.) It can expand the healthy

drinks like juice market

1.)There is increasing competition and thus

lessening of market share 2.) The customers are cost

sensitive 3.) The profit margins

decrease due to promotion methods increasing

STRENGTH WEAKNESS

OPPORTUNITY THREAT