Management Studies - IDEAZ A

Failure of Pepsi’s brand

‘Atom’

Presented By-

Malviya National Intitute of Technology, Jaipur

Jeet Chaudhuri
Cogni ID- COG15/04305

jeetch96@gmail.com

+91 9782005187

Vishakha Agarwal
Cogni ID- COG15/060533

agarwalvishakha129@gmail.com

+91 7073033643

Raghav Maheshwari
Cogni ID- COG15/04633

rmladdha28@gmail.com

+91 7597469194
Introduction

In the current market Coca Cola has 56.7% of the share while Pepsi 34.1%
with major shares going to Coca Cola’s brands like Thums Up and Sprite.
In order to compete with Coca Cola’s Thums Up (which has the reputation of
being a strong carbonated drink and happens to be one of the most popular
products of Coke); Pepsi launched Pepsi Atom. It was launched during the
sixth season of Indian Premier League (IPL) tournament.

PepsiCo had spent 396 crores to buy the title sponsorship of IPL-6 and had
also spent around 160 crore for the tournament. They planned to leverage
this opportunity to get high visibility in stadiums as well as on televisions.

PepsiCo hired Sushant Singh Rajput as its brand ambassador as he

represents today’s youth. The tagline was ‘Chalo aaj kuch akalmand kare!’
(Let’s do something intellectual) whereas Thums up have a tagline of ‘Aaj
kucch toofani karte hain’ (Let’s do something adventurous). This product
had been rejected by the consumers.

Failure

This brand failed with its Marketing Mix as well i.e. product, place,
promotion, price, and packaging.

 Product: Pepsi Atom failed against its expectation of having a strong

taste. It tasted more like a cinnamon cola, and let’s just say the two
don’t blend. Indian consumers mostly consume soft drinks with their
food or when they are hungry. The product did not meet the
expectation.
 Promotion: It had been promoted in the best event to attract Indian
youth. i.e. IPL . The advertising campaign of Josh Cola of Pepsi “Piyo
Josh Mein Jio Hosh Mein” was not that effective as Thums Up’s “Aaj
Kuch Toofani Karte hain”. Sushant Singh Rajput could not beat
Salman Khan as the face of this new strong cola drink. The ad
campaign seemed more of a parody than an original idea.
 Packaging: – The design of the PET bottle was also not very eye catchy
or innovative. The design of the bottle looks very old. Pepsi is known
for its youth appealing designs but it failed in its packaging with Pepsi
Atom.

Solution
Pepsi being an innovative brand should have come up with a product which
is more youth appealing. Keeping this in mind they could have come up with
a new product with the combination of cola and some energy ingredients.

 The market size of energy drinks in India is estimated at about Rs 700

crore, growing 20-25% year-on-year. The carbonated drinks market is
close to Rs 6,000 crore and is growing by 10-12% annually, says a
report.
 According to Euromonitor International, with changing lifestyles and
increasing paucity of time, urban consumers are relying on energy
drinks to cope up with fast paced lifestyles.
 They could come up with a new innovative ad campaign which rather
than trying to directly compete with Thums Up connects to people
with topics like politics etc. and better youth appealing packaging.
 Most of them would continue to use energy drinks to boost stamina
and energy levels.
Management Studies - IDEAZ B

Inflation is the
situation of Price Rise

Presented By-

Malviya National Intitute of Technology, Jaipur

Jeet Chaudhuri
Cogni ID- COG15/04305

jeetch96@gmail.com

+91 9782005187

Vishakha Agarwal
Cogni ID- COG15/060533

agarwalvishakha129@gmail.com

+91 7073033643

Raghav Maheshwari
Cogni ID- COG15/04633
rmladdha28@gmail.com

+91 7597469194

“Inflation is as violent as a mugger, as frightening as an armed robber and

as deadly as a hitman” – Ronald Reagan

Inflation is the situation of price rise. But what is the reason behind this
price rise?Excess demand over supply. It can be classified into two i.e. Cost
pull and Demand pull.

Cost pull-When manufacturing cost increases , which ultimately increase

the cost of product.So, how can it be reduced? It can be reduced by
following ways:

1.Decreasing the manufacturing cost.

2.Decreasing the tax on raw materials(like excise duty), and the benefit of
the cost is transferred to the ultimate consumer effectively(without any
leakage).

But which one is viable out of two?

Second one, decrasing tax on raw materials is more viable ; because first
one has a limitation that a manufacturer can reduce cost by cutting wages,
which will again prove to be unjustified on part of workers and practically
the cut in wage rate is higher than cut in product prices.

This is what we call “Spiral effect”.

Demand pull- When demand leads to increase in price rise.”Too small things
chased by the large public”.

Solution-Increase production(supply).

Measures can be taken by Government and Reserve Bank of India.

1. RBI can increase the Repo rate(rate at which RBI lend to commercial
banks).-It will decrease spending capacity in market.
2. Government should issue Bonds or Commercial papers-To withdraw
individual purchasing power.
3. Government should increase taxation (indirect taxes) on rich income
bracket.
4. Increase in service tax-like restaurant, entertainment etc.
5. Decrease subsidy on Ist class government employees. Leakages in
subsidies should be reduced ,so that beneficiaries can avail it.
Note:-Essential commodities like rice, wheat, medicine etc.should be made
available at affordable prices, so that poor people cannot be affected by
taxes.

These measures can control inflation and reduce inequality between rich
and poor.