Strategic Marketing

On
Pepsico India Holdings Pvt Ltd.

ABOUT PEPSICO.

PepsiCo. entered India in 1989 and has grown to become one of

the countrys leading food and beverage companies.

PepsiCo India and its partners have invested more than U.S.
$700 million since the company was established in the country.

PepsiCo Indias expansive portfolio includes iconic refreshment

beverages Pepsi, 7 UP, Mirinda and Mountain Dew, in addition
to low calorie options such as Diet Pepsi, hydrating and
nutritional beverages such as Aquafina drinking water, isotonic
sports drinks - Gatorade, Tropicana100% fruit juices, and juice
based drinks Tropicana Nectars, Tropicana Twister and Slice.

Soft Drinks Market in

India

India is one of the top five markets in terms of growth of the soft
drinks market. The per capita consumption of soft drinks in the
country is estimated to be around 6 bottles per annum in the year
2009.

Objectives

To make the strategic analysis of Pepsico soft drinks in India.

To analysis its market position as compared to the competitor.

To find out the efforts in fighting competition.

Identification of gap areas in this form of business.

Assessment of competitors presence in the market & its

actions.

Studying consumer behaviors.

METHODOLOGY

An initial meeting with authorized distributors by

extensive discussion to understand the Business
Trend.

Primary Data collection: The primary data was

collected by conducting interviews with the
Retailers.

Secondary data collection: The secondary data

was collected from different websites, magazines,
news releases.

STRATEGIES

Marketing Strategies

In October 2008, it was announced that Pepsi would be

redesigning their logo and re-branding many of their
products.

The ultimate 'Halo 3' accessory: Mountain Dew; Pepsi plots

first beverage based on video game, ties to hot Xbox 360
title.

Apple and Pepsi to give away free songs

PepsiCo to become an official NFL sponsor

Pepsi ready for blockbuster summer

Advertising strategies:

Currently, PepsiCo India has twelve star endorsers

from Bollywood and the Indian cricket team.
Pepsis new campaign will be a consumercentric
advertising campaign without any celebrities,
Enthused by the response to Dhonis Mind it ads,
the company will now project Dhoni as its brand
icon in the next few months.
PepsiCo has roped in Ishant Sharma and Rohit
Sharma to feature in its Yeh hai Youngistan Meri
Jaan-dumping cricket stars Dravid and Ganguly.

Pricing Strategy

Pepsi adopted penetration-pricing strategy.

The prices of Aquafina have been brought

down from Rs 12 to Rs 10 for its 1-litre PET
bottles in the Kolkata market.

The new price points are 300 ml at Rs 6,

and 200 ml at Rs 5." Pepsi is reducing
prices of its 1.5-litre and 2-litre PET bottles,
to Rs 35 and Rs 40 respectively, against
the earlier price of Rs 43 and Rs 50.

Representation of Change in
Price

Packaging & Branding Strategy

It introduced first ever 1.5 & 2 litres packaging (bottles) of soft

drinks and subsidized kiosks (containers). Pepsi Max flavor which
ever since introduced in the market has enjoyed massive consumption
in the market.
The current Coke Zero flavour,packaging and branding appears to be
an intellectual property and recipe theft by Coca Cola.

GRAPHICAL REPRESENTATION OF PACKAGING

Promotional Strategy
Pepsi has been catching the trends of society. National songs by bands like
Vital Signs, Awaaz, Junoon and Strings were the keys in their
advertisement campaign.
The "Pepsi Play for a Billion" promotion, giving 1,000 consumers the
chance to play for $1 billion (with $1 million guaranteed) live nationally on The
WB network.
Promotional Media they use

Market Segment Strategy

Segmentation is usually done by demography, geography and

socioeconomic variables. The easiest way to segment consumer market is to
use demographic variables such as age, gender and education level.
Organizations that operate globally usually segment consumer market
geographically.

Why PepsiCo have to produce so many types of products? -The reason

is relevant to market segmentation. PepsiCo aims to attract different groups
of consumers with difference types of products.

Pepsico is looking for the common denominator in other countries that signal
the potential for success in translating established offers across other
borders in cross-border market egmentation.

Distribution Strategy

SWOT Analysis
STRENGTH

WEAKNESS

Strong Brand name.

Low supply, high demand.

Pepsi has effective marketing teams and innovative

campaigns.

Competitor is stronger.

Well deviated sales force.

Taste is favorable for all type of customers.

OPPORTUNITY

Distribution problem.
Customers prefer competitors product more.
Not all PepsiCo products bear the company name.
Coke is Selling in more than 200 Countries which is 32
countries more then Pepsi.
THREAT

Second brand position in India.

Rapid change in competition pattern.

A growing market.
Increased consumer spending.

Consumers always want new taste & flavor.

Thums up is more popular than Pepsi.
Competitors like coco cola which has already established it self as the leader
.Other substitute products providers like RC cola , real
and Amul etc also posses threat since they are offering
substitute products.
Government policy eg taxation, laws, training standards.

Findings

One of the best brands like Mountain Dew is doing a monopoly

business. It has no competitor in the market because of its unique
taste.
Mirinda (orange & lemon flavor) is yet to grab good market
position as compared to Limca of Coca-Cola.
Though Pepsi is doing far better business in terms of Can
segment by launching products like My Can(slim),but it has not
focused on bottle segment.
Pepsico sector than Coca-Cola.is focusing lesser on rural
Pepsi has only Pepsi and Diet Pepsi in cola segment while Coca
Cola has three products like Coco Cola, Diet coke and Thums up
in this segment.

Market Share of Inter Brands of

Pepsi

Recommendation

Pepsico can walk to the same way as Coca-Cola, as it has

introduced its new Fridge Pack (1.25 ltr/Rs.35) & Express Pack.
More Glow Sign Board advertisement can be provided to the
major outlets as a promotional activity.
To know the actual problems of a market, company executive
can arrange regular meeting with the distributors. So the
solution against the problems can be taken.
Sales training can be provided to make the sales men more
active.
Bill to bill credit facility can be given.
Distributor contest program can be arranged to get maximum
efforts from the distributors.

Thank You