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Chapte

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Introduction Abou the Topic

1.1 Introduction
1.2 Defination
1.3 Marketing Strategy
1.4 Marketing Mix 4PS
1.5 Objective of the study
1.6 Research Methodiology
Information About Pepsico
2.1 Industry Profile
2.2 Company Profile
2.3 History
2.4 Mission & Vision & Its Philosophy
2.5 Pepsico In India
2.6 Overview of Pepsico In India
Marketing Mix Strategy of Pepsico
3.1 Marketing Strategy of Pepsico
3.2 Marketing Mix In Pepsico
3.3 Marketing System
3.4 Performance with Purpose
3.5 Segment of Market
3.6 Pepsico Positioning
3.8 Swot Analysis
3.9 Conclusion
3.10 Bibliography

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CHAPTER -1
INTRODUCTION ABOUT THE TOPIC
1.1 INTRODUCTION

Marketing deals with identifying and meeting human and social needs. One of the shortest
definitions of marketing are meetings needs profitably. The 21st centurys the era of
Advertising, Marketing and Sales Production; Marketing is to convert social needs into
profitable opportunities. As it is said Marketing thinking starts with the human needs and
wants. Apart from basic necessities of air, water, shelter and clothing, every person has
strong desire for recreation and entertainment. They have strong preference for particular
brand of basic and services. Marketing serves as the link between the societys needs and its
pattern of Industrial response. Beverage industry is one of the fast growing industries in
India. We can divide Beverages into two sections i.e. Alcoholic & Non-alcoholic. Then onalcoholic drinks are soft drinks that can be further classified Cola, Lemon, Orange, Mango
and Apple segment.
1.2 DEFINATION
According to me marketing means, push the product to the market & pull the customer
towards the business. We can say that the main aim of the marketer is to convert the want of
the customer to the need of the customer. Thus marketing job is to convert societal needs
into profitable opportunities. Hence, Marketing occupies an important position in the
organization of a business unit. It is one of the important line activities of business operation.
It consists of the ownership of goods. Goods are not complete products until they are in the
hands of the customer. It is the process by which products are made available to the ultimate
consumers from their point of origin. It consists of all those activities, which are meant to
ensure the flow of goods & services from the producer to the consumer. Therefore, marketing
thinking must start with a crystallization of needs of consumer segment of which the efforts
will ultimately be aimed. In terms of needs, the product or service must be developed or
improved so that ultimately the product satisfies such needs of the consumer segment
involved.
Today marketer, have to take tough decisions because todays market place is venomously
more complex. Domestic markets, at one time safe from foreign invaders are now the happy
hunting grounds of giant global corporation as well as global niche specialists. Major strides
in technology have considerably shortened time & distance. New products are launched &
astonishing pace are available worldwide in a short time. Communicating ones media are
2

proliferating new distribution channels & formats keep appearing. Competitors are
everywhere & hungry.

1.3 Marketing Strategy

The field of marketing strategy encompasses the strategy involved in the management of a
given product. A given firm may hold numerous products in the marketplace, spanning
numerous and sometimes wholly unrelated industries. Accordingly, a plan is required in order
to effectively manage such products. Evidently, a company needs to weigh up and ascertain
how to utilize its finite resources. For example, a start-up car manufacturing firm would face
little success should it attempt to rival Toyota, Ford, Nissan, Chevrolet, or any other large
global car maker. Moreover, a product may be reaching the end of its life-cycle. Thus, the
issue of divest, or a ceasing of production, may be made. Each scenario requires a unique
marketing strategy. Listed below are some prominent marketing strategy models.

1.4 Marketing Mix :( 4Ps OF MARKETING)

Marketing mix is a by-product of customer oriented marketing approach. After identifying

the market & gathering the basic information about it, the next step in the direction of market
programming is to decide upon the instruments & the strategy for meeting the needs of the
customers & challenges of rival sellers.

According to W.J. Stanton, Marketing mix is a combination of four elements such as

product, pricing structure, distribution system & promotional activities used to satisfy the
needs of an organizations target market & at the same time achieves its marketing
objectives. Every business enterprise has to determine its marketing-mix for the satisfaction
of the needs of the customers. Marketing mix represents a blending of decision in four areas
product, pricing, promotion & physical distribution. These elements are inter-related, because
decision in one area usually affects action in the others.
Marketing mix is marketing managers instrument for the attainment of marketing goals. It
is composed of four ingredients, i.e.,
(i) Product
(ii) price
(iii) promotional activities
(iv) distribution.
These elements constitute the core of marketing system of a firm. A marketing manager
implements his strategies & policies through these instruments.
Marketing mix represents a blending of four elements namely product, price, promotion &
distribution. Determination of marketing mix is an important decision which the marketing
manager has to take. The basic purpose of marketing mix is to satisfy the needs & wants of
the customer in most effective manner. As the needs of customers & the environmental
factors change, marketing mix is also changed.
1.5 OBJECTIVE OF THE STUDY

To know the sales promotion tools used by PepsiCo Company.

To know about the sales promotion impacts on sale of the product of PepsiCo Company
in CTC.

To find out the best promotional tool preferred by the retailers.

To know the peak periods of sales promotion activities.

To analyze the strength & weakness of PepsiCo.

4

To determine the standard of sales & services & public relation.

1.6 RESEARCH METHODOLOGY:

Secondary data:
Secondary data collected from the published magazines and websites to collect the
data. The secondary data is collected from the following sources.

Business magazines
Journals
Published books
Website

CHAPTER 2
INFORMATION ABOUT PEPSICO
2.1 INDUSTRY PROFILE
Fast moving consumer goods (FMCG), are products that are sold frequently at relatively low
cost. Though the absolute profit made on FMCG products is relatively small, they generally
5

sell in large quantities, so the cumulative profit on such products can be large. Examples of
FMCG generally includes a wide range of frequently purchased consumer products such as
soft drink, toiletries, soap, cosmetics, toothpaste and powders, detergents, It also includes
pharmaceuticals, consumer electronics, packaged food products, although these are often
categorized separately.
Soft drinks industry: The soft-drink industry comprises companies that manufacture
nonalcoholic beverages, carbonated mineral waters or concentrates and syrups for the
manufacture of carbonated beverages. Naturally occurring bubbling or sparkling mineral
waters have been famous for thousands of years- the ancient Greeks believed that such
waters had medicinal properties and bathed in them regularly, the Romans established resorts
around mineral springs throughout Europe. In the 1500s the village of Spa in Belgium
became very famous for its waters, which by the early 1600s were sold, in bottles, as far
away as London, England. Development of the first man-made carbonated water is credited
to Joseph Priestley, the British scientist who discovered oxygen. In year 1772 he invented a
method of "pushing carbon dioxide into water by dissolving it under high pressure, thus
creating fairly long-lasting bubbles. The technique led to development of the soft-drink
industry. By the very beginning of the 19th century, carbonated water was being made
commercially in France and North America, shortly thereafter; flavors were added to enliven
the taste. In the1820s, small carbonated bottling operations were established in Canada,
producing carbonated drinks in refillable bottles that were merchandised as medicinal elixirs,
tonics.
The main principle of "pushing" carbon dioxide is still used, but now the water is
first purified in a process known as "polishing." Cooled carbon dioxide is then injected at the
pressures of 275-550 kilopascals. Some of the early drinks bottled in Canada were called
Birch Beer, Ginger Beer, Sour Lemon, None-Such Soda Water. The first carbonated beverage
bottles were sealed with corks held tightly in place with a wire binding. Because they had to
be stored neck down so that the cork would not dry and allow carbonation to leak away, they
were manufactured with rounded bottoms. The Hutcheson Spring Stopper replaced such
closures. The crown cap was introduced in 1905 and improved versions are still widely used,
6

although they are gradually being replaced, especially on larger containers, with enclosable
screw caps. Other packaging innovations since the mid-1960s include canned carbonated
beverages and no returnable glass bottles and containers made from rigid plastics. However,
an effort is being made, often through provincial legislation, to increase the use of the
returnable glass containers. The industry is regulated by federal and provincial agencies,
three of the most important being CONSUMER AND CORPORATE AFFAIRS (it is
responsible for the Consumer Packaging and Labeling Act), HEALTH CANADA (which
administers both the Food and Drugs Act) and Environment Canada (which focuses on
environmental matters).The introduction of diet-carbonated beverages has totally changed the
industry's profile. Many years ago, in response to increasing consumer diet consciousness,
the industry introduced the first successful sugar-free diet drinks. But here questions were
raised about the safety of this additive and, based on existing scientific data; Health Canada
banned its use in Canadian commercial FOODS AND BEVERAGES. This decision,
estimated to have cost the industry more than $17 million, was a setback to diet-drink
development. Now, a new sugar-free additive, aspartame, has been approved for the use in
diet soft drinks, and the cyclamate situation is not expected to recur because aspartame
consists of amino acids, which occur naturally. Just before the saccharin ban in 1977, diet
drinks accounted for

about 10% of the soft-drink market, following the ban the diet share

dropped to about 3%, consisting of beverages partially sweetened with the small amounts of
sugar. In the year 1982, the first full year that aspartame was used in Canada, diet drinks
increased by 16.25% of total soft-drink sales, while the total soft-drink industry grew 10%.In
1987 total soft-drink sales increased 7.3% over 1986, while diet soft-drink sales increased by
12.7%. This single development has encouraged the strong growth in the industry.
2.2 COMPANY PROFILE
PepsiCo is one of the largest FMCG companies there is that is engaged in the food, beverage,
and snack industries. PepsiCo is engaged in the snack food, soft drink, juice, and fast food
franchise businesses. The Company, through its subsidiaries, markets, sells and distributes
various snacks in the United States and internationally, manufactures concentrates of Pepsi,
Mountain Dew and other brands for sale to franchised bottlers in the US and international
markets and produces, markets, sells and distributes juices under several Tropicana
7

trademarks in the United States and internationally. PepsiCos domestic snack food business
is conducted by the Frito-Lay North America, and its international snack food business is
conducted through Frito-Lay International. The Company's soft drink business operates as
the Pepsi-Cola Company and is comprised of two business units one is Pepsi-Cola North
America and Pepsi-Cola International. In December 2000, the Company announced an
agreement under which a subsidiary of the PepsiCo will merge with Quaker Oats Company,
and Quaker will become a wholly owned subsidiary of the PepsiCo. Quaker is a large
worldwide marketer of foods and beverages. The proposed merger is subject to the certain
closing conditions, including approval by shareholders of both companies and regulatory
approvals. The transaction is expected to close in the first half of 2000. PepsiCo is also
operating several food franchises including Pizza Hut, KFC, and Taco Bell etc.
PepsiCo- The Parent Company:
PepsiCo is one of the world's largest food and beverage companies. The company's
principal businesses include
1. Frito-Lay snacks
2. Pepsi-Cola beverages
3. Gatorade sports drinks
4. Tropicana juices
5. Quaker Food

2.3 PepsiCo Milestones:

2005, PepsiCo, Launches Pepsi Limon in Peru

2005, PepsiCo India re-launches Mirinda cold drink

2006, Tropicana debuts Tropicana Pure a new line of 100% premium juices

2006, Ms. Indra Nooyi named Chief Executive Officer of PepsiCo as of October
1,2006

2006, Pepsi signs five-year sponsorship renewal with Major League Baseball
Properties making Pepsi the "Official Soft Drink of Major League Baseball"

2007, Aquafina launches Aquafina Alive - a low calorie, vitamin-enhanced

water beverage

2007, Tropicana launches The Tropicana Fruit Squeeze, a 20-calorie drink with real
Tropicana fruit juice

2007, Pepsi launches "Design Our Pepsi Can" National Promotion

2007, The Indra Nooyi receives the Outstanding American by Choice Award

2007, PepsiCo makes in Fortune magazine's '100 Best MBA Employers' list

2007, Diet Pepsi Launches in New Look, New Ad Campaign and New Attitude - Diet
Pepsis "More Cola Taste"

2007, Mountain Dew Unveils unique, limited edition aluminum bottles

2007, PepsiCo named a 2007 Working Mother 'Best Company for Multicultural
Women'

2007, Pepsi wins Webby Award for its execution of the "Best Sports Website"

2008, Frito-Lay Turkey builds the world's first organic waste treatment facility

2008, PepsiCo honored by the Environmental Protection Agency as water efficiency

leader

2008, PepsiCo recognized as the Food & Beverage Packaging magazine's

2008Beverage Packager of the Year

2008, Forbes names PepsiCo among its 'Best Big Companies'

2009, PepsiCo is named to the 'Best Companies for Multi Cultural Women' list by
Working Mother Magazine

2009, Pepsi wins 'Football Promoter of the Year' award in Nigeria for its involvement
with the development of the grassroots football

2009, PepsiCo International introduces world first non-alcoholic, flavored malt drink,
Bario, into Saudi market
9

2009, PepsiCo is listed in the top 20 'Ideal Employer MBA Ranking' in Fortune
magazine

2009, PepsiCo introduces three new products in marketPepsi Natural, Pepsi

Throwback and Mountain Dew Throwback, all sweetened with natural sugar

2009, PepsiCo India launches The Nimbooz by 7Up, a beverage inspired by Indias
favorite lemonade drink

2009, PepsiCo introduces the first climate-friendly vending machines to the U.S.

2009, Aquafina launches the Eco-Fina Bottle, the lightest weight bottle in the market.

2010, Frito-Lay commits to making 50% of its product portfolio made with all natural
ingredients.

2010, Tropicana introduces Trop50 Farm stand Apple.

2011, Tingyi Holding and PepsiCo enter into agreement to form strategic alliance in
China

2011, PepsiCo Foundation expands commitment to Water.org with $8 Million

contribution to scale 'Water Credit' across India

2012, Diet Mountain Dew, Brisk and Starbucks ready-to-drink beverages join
PepsiCos portfolio of billion-dollar brands, bringing the total to 22

2012, PepsiCo Potato Chip Brands surpass $10 billion in global retail sales

2012, Pepsi launches first-ever global campaign, "Live For Now".

2.4 Mission and Vision:

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Mission:
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 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.
Vision:
"PepsiCo's responsibility is to continually improve all aspects of the world in which we
operate -Environment, social, economic - creating a better tomorrow than today."
Our vision is put into action through programs and a focus on environmental stewardship,
activities to benefit society, and a commitment to build shareholder value by making PepsiCo
a truly sustainable company.
Performance with Purpose: At PepsiCo, we are committed to achieving business and
financial success while leaving appositive imprint on the society delivering what we call
Performance with Purpose. Our approach to superior financial performance is the
straightforward drive shareholder value. By addressing social and the environmental
issues, we also deliver on our purpose agenda, which consists of the human, environmental,
and talent sustainability.
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PepsiCo Values &Philosophy:

Our Values & Philosophy are a reflection of the socially and environmentally responsible
company we aspire to be. They are the foundation for the every business decision we make.
Commitment:

We are committed to delivering the sustained growth through empowered people acting
responsibly and building trust.
Sustained Growth is fundamental to motivating and measuring our success. Our quest for
sustained growth stimulates innovation, places a value on results, and helps us understand
whether today's actions will be contribute to our future. It is about the growth of people and
company performance. It prioritizes both making a difference and getting the things done.
Empowered People means we have the freedom to act and think in ways that we feel will
get the job done, while adhering to processes that ensure proper governance and being
mindful of company needs beyond our owns.
Responsibility and Trust forms the foundation for the healthy growth. We hold ourselves
both personally and corporately accountable for everything we do. We must earn the
confidence others place in us as individuals and as a company. By acting as good stewards of
the resources entrusted to us, we strengthen that trust by walking the talk and following
through on our commitment to succeeding together.
Guiding Principles: We uphold our commitment with six guiding principles.
We must always strive to:

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Care for our customers, our consumers and the world we live in. we are driven
bathe intense, competitive spirit of the marketplace, but we direct this spirit toward the
solutions that benefit both our company and our constituents. Our success depends on
the thorough understanding of our customers, consumers and communities. To foster
this spirit of generosity, we go the extra mile to show we care.

Sell only products we can be proud of. The true test of our standards is our own
ability to consume and the personally endorse the products we sell. Our confidence
helps ensure the quality of the products, from the moment we purchase ingredients to
the moment it reaches the consumer's hand.

Speak with truth and candor. We tell the whole story, not just what convenient toour
individual goals are. In addition to being the clear, honest and accurate, we are
responsible for ensuring our communications are understood.

Balance short term and long term. In every decision, we weigh both short-term and
long-term risks and benefits. Maintaining this balance helps sustain our growth and
ensures our ideas and the solutions are relevant both now and in the future.

Win with diversity and inclusion. We embrace people with diverse backgrounds, traits
and the ways of thinking. Our diversity brings new perspectives into the workplace and
encourages innovation, as well as the ability to identify the new market opportunities.

Respect others and succeed together. Our mutual success depends on the mutual
respect, inside and outside the company. It requires people who are capable of working
together as part of a team or informal collaboration. While our company is built on
individual excellence, we also recognize the importance and value of teamwork in
turning our goals into accomplishments

The PepsiCo Family:

Meet the three major divisions of the PepsiCo family:
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PepsiCo Americas Beverages.

PepsiCo Americas Foods.

PepsiCo International.

2.5 PEPSICO INDIA

INTRODUCTION:
Pepsi Co entered India in 1989 and in the short span of a little more than a decade it became
the country's largest selling soft drinks company. The Company has invested heavily in India
making it one of the largest multinational investors. The group has built an expansive
beverage, snack food and exports business and to support the operations are the groups of 43
bottling plants in India, of which 15 are company owned and 28 are franchisee owned.
PepsiCo stays committed to providing its consumers with best quality beverages. Its diverse
portfolio of brands include the flagship cola brand Pepsi, Diet Pepsi, 7Up, Mirinda, Mountain
Dew, Slice fruit drink, Tropicana brand 100% fruit juices in the various flavors, Aquafina
packaged drinking water, the Gatorade plus local brands Lehar Evervess Soda and Dukes
Lemonade and Mangola.
PepsiCo is also a dominant player in snack food segment in India. PepsiCo's snack food
company Frito-Lay is the leader in the branded potato chip market. It manufactures Lays
Potato Chips; Cheetos extruded snacks, Uncle Chips, Kurkure and Lehar brands, and Quaker
Oats. PepsiCo is one of the largest MNC exporters in the India and its export business
consists of three categories: agri business, commodities and Pepsi system sales. PepsiCo has
made the significant investments with the Punjab Agriculture University to develop the
comprehensive agro-technology program that has helped thousands of the farmers across
India improve the yield of their farms and the quality of their agricultural products. PepsiCo
has leveraged its knowledge in the contract farming to develop seaweed cultivation in the
Tamil Nadu and has partnered with the Government of Punjab to help farmers of the state
through the utilization of developed technology for the citrus farming. As part of its
sustainable development initiatives, PepsiCo India has been a committed leader in the
promotion of rainwater harvesting, water conservation recycling and reduction of effluent
14

discharge. PepsiCo has also established the zero waste centers and PET recycling supply
chains and assisted victims of natural disasters. PepsiCo stays dedicated in its endeavor to
develop the community outreach programs by supporting rural water supply schemes,
administering medical camps in villages, providing computers to rural schools and creating
opportunities for women in rural areas through vocational training as an alternate means
of the livelihood.
2.6 OVERVIEW OFPEPSICO INDIA
PepsiCo mission:
"To be the world's premier consumer Products Company focused on the convenience food
and beverages. We seek to produce healthy financial rewards to the investors 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 the integrity.
PepsiCo in India: PepsiCo has established its business operations in India in 1989 and has
grown to become the one of the countrys leading food and the beverage companies. One of
the largest multinational investors in the country, PepsiCo has established a business, which
aims

to

serve

the

long

term

dynamic,

needs

of Indian

consumers.

Initially PepsiCo has joint venture with the Punjab government-owned Punjab Agro
Industrial Organization and the Voltas India Limited. This joint venture marketed and sold
Lehar Pepsi until 1991, when the use of foreign brands was allowed, PepsiCo bought out its
partners and ended the joint venture in 1994. Others claim that firstly Pepsi was banned from
the import in India, in 1970, for having refused to release the list of its ingredients and in
1993, the ban was lifted, with Pepsi arriving on the market shortly afterwards. These
controversies are a reminder of "India's sometimes acrimonious relationship with the huge
multinational companies." Indeed, some argue that PepsiCo and Coca Cola company have
"been major targets in part because they are well-known foreign companies that draw plenty
of the attention. In 2003, the Central for Science and Environment, a non governmental
organization New Delhi, said that aerated waters produced by soft drinks manufacturers in
India, includingmultinational giants PepsiCo and tested products included Coke, Mirinda,
15

7Up, ThumsUp, Fanta, and Sprite. CSE found that the Indian produced Pepsi's soft drink
products had36 times the level of pesticide residues permitted under the European Union
regulations, Coca Cola's 30 times. CSE said that it had tested the same products in the US
and found no such residues. However, this was the European standard for water, not for the
other drinks. No law bans the presence of pesticides in drinks in India. The Coca-Cola
Company and PepsiCo angrily denied allegations that their products are manufactured in
India contained toxin levels far above the norms permitted in developed world. But an Indian
parliamentary committee, in 2004, backed up CSE's findings and by a government-appointed
committee, is now trying to develop the worlds first pesticides standards for soft drink
company. Coke and PepsiCo opposed the move, arguing that lab tests are not reliable enough
to detect minute traces of pesticides in complex drinks. As of 2005, The Coca-Cola Company
and the PepsiCo together hold 97% market share of soft drink sales in the India. PepsiCo has
also been accused by the Puthussery panchyat in the Palakkda district in the Kerala, India, of
practicing "water piracy" due to its role in the exploitation of ground water resources
resulting in the scarcity of drinking water for the panchayat's residents, who have been
pressuring the government to close down the PepsiCo unit in the villages. In the year 2006,
the CSE again found that soda drinks, including both the Pepsi and the Coca-Cola, had high
levels of pesticides in their drinks. Both the PepsiCo and The Coca-Cola Company maintain
that their drinks are safe for the consumption and have published in newspaper advertisement
that say that pesticide levels in their products are less than those in other foods such as tea,
fruit and dairy products. In the Indian state of Kerala sales and production of Pepsi-Cola,
along with other soft drinks, was banned by the state government in 2007, but this was
reversed by the Kerala High Court merely a month later. Five other Indian states have
announced a partial ban son the drinks in the schools, colleges and the hospitals. PepsiCo
India and its partners have invested more than USD1 billion since the company was
established in the country. PepsiCo India provides the direct and indirect employment to
150,000 people including suppliers and the distributors. PepsiCo nourishes consumers with a
range of the products from treats to healthy eats, which deliver joy as well as nutrition and,
good taste. PepsiCo Indians expansive portfolio includes the iconic refreshment beverages
Pepsi, 7 UP, Mirinda and Mountain Dew, in addition to low calorie options such as the Diet
Pepsi, hydrating and nutritional beverages such as the Aquafina drinking water, isotonic
16

sports drinks Gatorade, Tropicana100% fruit juices, and juice based drinks, Tropicana
Nectars, and Slice. Local brands Lehar Evervess Soda, Dukes Lemonade and Mangola add
to the diverse range of the brands.
PepsiCos foods company, is the leader in the branded salty snack market and all the FritoLay products are free of trans-fat and the MSG. It manufactures Lays Potato Chips
UncleChipps and the traditional snacks under the Kurkure and Lehar brands. The company
sigh fiber breakfast Quaker Oats, and low fat and roasted snack options enhance the healthful
choices available to the consumers. Frito Lays core products, Kurkure, UncleChipps and
Cheetos are cooked in Rice Bran Oil to significantly reduce saturated fats and all of
its products contain voluntary nutritional labeling on their packets. The group has built an
expansive beverage and foods business. To support its operations, PepsiCo has total of 42
bottling plants in India, of which 13 are the company owned and 29are the franchisee owned.
In addition to, PepsiCo Frito Lay foods division has three state-of-the-art plants. PepsiCos
business is based on its sustainability vision making tomorrow better than the today.
PepsiCos commitment to the living by this vision every day is visible in its contribution
to the country, consumers and the farmers.
Soft Drink Market in India: India is one of the top most five markets in terms of growth of
the soft drink market. The per capita consumption of the soft drinks in the country is
estimated to be around six bottles per annum in the year 2003. It is very low compared to the
corresponding figures in US (600+ bottles plant per annum).The major players in the soft
drinks market in India are PepsiCo and Coca-Cola, like elsewhere in the world. Coca Cola
acquired the number of local brands like Limca, ThumsUp when it entered in Indian market
for the second time. Pepsi Cos soft drink portfolio also consists of the Miranda and 7Up
along with the Pepsi. The market share of each of the company is more or less same, though
there is a conflict in the estimate quoted by the different sources.

The major ingredient in

the soft drink is water. It constitutes close to 91% of the soft drink content. Added to this, the
drink also contains sweeteners, Citric Acid, Malice acid, Color, Preservative, Anti Oxidant.
The PepsiCo Family
17

Meet the four major divisions of the PepsiCo family: PepsiCo Americas Beverages, PepsiCo
Americas Foods, PepsiCo Europe, PepsiCo Middle East and Africa.
1.

PepsiCo Americas Beverages

2.

PepsiCo Americas Foods

3.

PepsiCo Europe

4.

PepsiCo Asia, Middle East & Africa

PepsiCo Americas Beverages

Pepsi was founded in 1898 by Caleb Bradham, a New Bern, North Carolina, druggist, who
first formulated Pepsi-Cola.
Today, Brand Pepsi is part of a portfolio of beverage brands that includes carbonated soft
drinks, juices and juice drinks, ready-to-drink teas and coffee drinks, isotonic sports drinks,
bottled water and enhanced waters. PepsiCo Americas Beverages (PAB) has well known
brands such as Mountain Dew, Diet Pepsi, Gatorade, Tropicana Pure Premium, Aquafina
water, Sierra Mist, Mug, Tropicana juice drinks, Propel, SoBe, Slice, Dole, Tropicana Twister
and Tropicana Season's Best.
In 1992 PAB formed a partnership with Thomas J. Lipton Co. to sell ready-to-drink tea
brands in the United States. Pepsi-Cola also markets Frappuccino ready-to-drink coffee
through a partnership with Starbucks.
Tropicana was founded in 1947 by Anthony Rossi as a Florida fruit packaging business. In
1954 Rossi pioneered a pasteurization process for orange juice. For the first time, consumers
could enjoy the fresh taste of pure not-from-concentrate 100% Florida orange juice in a
ready-to-serve package. The juice, Tropicana Pure Premium, became the company's flagship
product. PepsiCo acquired Tropicana, including the Dole juice business, in August 1998.
SoBe became a part of PAB in 2001. SoBe manufactures and markets an innovative line of
beverages including fruit blends, energy drinks, dairy-based drinks, exotic teas and other
beverages with herbal ingredients.
Gatorade thirst quencher sport drinks, was acquired by The Quaker Oats Company in 1983
and became a part of PepsiCo with the merger in 2001. Gatorade is the world's first isotonic
sports drink as is backed by 40 years of science. Created in 1965 by researchers at the
University of Florida for the school's football team, "The Gators," Gatorade is now the
world's leading sport's drink.
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Pepsi Beverages Company

On February 26th, 2010, PepsiCo completed its mergers with PAS and PBG to strengthen its
North American beverage business. The North American bottling operations of PAS and PBG
are now an operating unit of PepsiCo known as Pepsi Beverages Company. PBC operates in
the United States, Canada and Mexico and encompasses approximately 75 percent of
PepsiCo's North American beverage volume. PBC's diverse portfolio includes some of the
world's most widely recognized beverage brands, including Pepsi, Mountain Dew, Sierra
Mist, Aquafina, Gatorade, SoBe, Lipton, and Amp Energy. PBC also manufactures and
distributes third-party brands in key local markets such as Dr Pepper, Crush, Rock Star and
Muscle Milk. The operating unit is headquartered in Westchester County, New York. Read
more about the Pepsi Beverages Company.
1.

PepsiCo Americas Foods

2.

PepsiCo Europe

PepsiCo Americas Foods (PAF) is PepsiCo's food and snack business in North and South
America. Its portfolio of businesses includes Frito-Lay North America, Quaker Foods &
Snacks, Sabritas, Gamesa and Latin America Foods.
Frito-Lay North America
In 1932, C.E. Doolin entered a small San Antonio cafe and purchased a bag of corn chips.
Little did he dream this savory chip would become one of the nation's most popular snacks?
Mr. Doolin learned that the manufacturer of the chips was eager to sell his small business, so
he purchased the recipe, and began to sell FRITOS Corn Chips from his Model T Ford.
Meanwhile, that same year, Herman W. Lay began his potato chip business in Nashville by
delivering snack foods. Not long after, Mr. Lay purchased the manufacturer, and the H.W.
Lay & Company was formed. H.W. Lay & Company became one of the largest snack food
companies in the Southeast, and LAY'S brand Potato Chips is still America's favorite potato
chip.
Years later, in 1961, the Frito Company and the H.W. Lay Company merged to become FritoLay, Inc. Today, Frito-Lay North America makes some of the most popular snacks in the US,
including LAY'S and RUFFLES potato chips, DORITOS tortilla chips, TOSTITOS tortilla

19

chips and dips, CHEETOS cheese flavored snacks, FRITOS corn chips, ROLD GOLD
pretzels, SUNCHIPS multigrain snacks, CRACKER JACK candy coated popcorn.
Quaker Foods North America
The Quaker Oats Company was formed in 1901 when several American pioneers in oat
milling came together to incorporate. In Ravenna, Ohio, Henry D. Seymour and William
Heston had established the Quaker Mill Company. The figure of a man in Quaker clothes
became the first registered trademark for breakfast cereal and remains the hallmark for
Quaker Oats today.
In Cedar Rapids, Iowa, John Stuart and his son, Robert, and their partner, George Douglas,
operated the largest cereal mill of the time. Ferdinand Schumacher, known as "The Oatmeal
King," had founded German Mills American Oatmeal Company in 1856.
Combining The Quaker Mill Company with the Stuart and Schumacher businesses brought
together the top oats milling expertise in the country as The Quaker Oats Company.
The first major acquisition of the company was Aunt Jemima Mills Company in 1926, which
is today the leading manufacturer of pancake mixes and syrup. Gatorade was acquired in
1983.
In 1986, The Quaker Oats Company acquired the Golden Grain Company, producers of RiceA-Roni. Its brands today include Quaker oatmeal, Life and Capon Crunch ready-to-eat
cereals, Aunt Jemima mixes and syrups, and Rice-A-Roni, Pasta Roni and Near East side
dishes. PepsiCo merged with The Quaker Oats Company in 2001.
Sabritas
Headquartered in Mexico City, Sabritas is a leader in the Mexican snack and fun food
market. Founded in 1943, Sabritas is renowned for the quality, variety and flavors of its
products, and serves as the umbrella brand under which PepsiCo markets Frito-Lay products
in Mexico, such as Cheetos, Fritos, Doritos and Ruffles. It is also the name brand for its own
line of potato chips. Additionally, the business manufactures and markets several local brands
such as Crujitos, Puffers, Anchorites and Sabritones. Sabritas controls around 80% of the
Mexican snacks market. PepsiCo acquired Sabritas in 1966.
Gamesa
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Headquartered in Monterrey, Mexico, Gamesa is a global leader in the cookies market, and
Mexico's largest manufacturer of cookies. The company has offered its consumers a wide
variety of high-quality products for every lifestyle, producing pastries, oats, cereals and other
related products. It has production facilities in five states across Mexico. Among its most
successful brands are Marisa Gamesa, Emperador, Arcoiris, Mamut, Chokiest, and Maizoro.
In 1990, it was acquired by PepsiCo.
Latin Americas Foods
The Latin Americas Foods business includes operations in Brazil, Argentina, Colombia, Peru
and Venezuela. Its portfolio of brands includes global snacks such as Lay's, Cheetos, Fritos
and Doritos, as well as local brands like Lucky snacks in Brazil.
PepsiCo Europe is the leading food and beverage company in Europe employing 43,000 in
the region. The company has a presence in 45 countries in Europe and has a broad range of
offerings including Frito Lay Snacks, Pepsi-Cola beverages, Gatorade sports drinks,
Tropicana juices and Quaker foods.
The company has invested over $3 billion in the region over the last 3 years including the
acquisitions of Lebedyanasky, a popular juice company in Russia, and Sandora, a Ukrainian
juice company.
Some of the most popular products in the region includes Walkers Crisps, Quaker Oats, Paw
Ridge, Pepsi, Diet Pepsi, Pepsi MAX, Pepsi RAW, 7UP, Copella, Doritos, Gatorade, Red
Sky, V Water, Planet Lunch, Lays, Cheetos, Smiths, Duyvis, Snack-a-Jacks, Quaker Cruesli,
Looza, Twistos, Solinki.
The company has made large investments in the region in its "healthier for you" portfolio
which include:

More than 20 million Euros in a flagship European R&D centre, which is dedicated to
creating new, healthier snacks for the European market.

In the UK alone, we've invested over 180 million Euros in making our products healthier,
such as Walkers crisps, which now contain 70% less saturated fat and up to 55% less salt
than they did five years ago.

Lower fat, baked Cheetos in Turkey

have introduced a range of dry roasted nuts with 30% less fat
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In the UK we are about to launch a '99 Calorie or less snacks range

Pepsi Max, no sugar, full flavors soft drink in the UK and the Nordics

PepsiCo Asia, Middle East & Africa

PepsiCo Asia, Middle East & Africa (AMEA) makes, markets and sells a number
of leading snack food brands including Lays, Kurkure, Chips, Doritos, Smiths,
Cheetos, Red Rock Deli and Ruffles, through consolidated businesses as well as
through no controlled affiliates. Further, either independently or through contract
manufacturers, AMEA makes, markets and sells many Quaker-brand cereals and
snacks. AMEA also makes, markets and sells beverage concentrates, fountain syrups
and finished goods, under various beverage brands including Pepsi, Mirinda, 7UP and
Mountain Dew. These brands are sold to authorized bottlers, independent distributors
and retailers. However, in certain markets, AMEA operates its own bottling plants and
distribution facilities. In addition, AMEA licenses the Aquafina water brand to certain
of its authorized bottlers. AMEA also, either independently or through contract
manufacturers, makes, markets and sells ready-to-drink tea products through an
international joint venture with Unilever (under the Lipton brand name).

CHAPTER 3
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MARKETING MIX STRATEGY OF PEPSICO

3.1 MARKETING STRATEGY AT PEPSICO:Eastern Europe, Mexico, china, Saudi Arabia and India markets have now become the
hotspots for Pepsico as the increasing global advertising strategies are escalated.
As such, Pepsico now operates in more than 190 countries and with 37% global
market share. Pepsico recognizes the need to carefully integrate high standards
in various processes of supply chain especially at the retail level. The company
strives for excellence specifically for the products or brands as well as packaging,
marketing and advertising. The rationale behind this is that customers deserve
better quality products and so quality controls are realized in manufacturing
and bottling process, packaging and from warehouses to store shelves. Pepsico
markets its products on the basis of localization process wherein local bottlers
determine which products to pact and sell in their territory based on local
consumer demand and other market factors. Pepsico has balance of promotions
and communicates through celebrity endorsers as well as on the Internet,
newspaper and sponsorships. Finally, Pepsico promotes its brands in
supermarkets through keeping discounts and great prizes to grab the attention
of buyers.

3.2 MARKETING MIX IN PEPSICO :

The tools of marketing mix are combined in such a manner that they give maximum mileage
to the product from the factory to the consumers hand.

Product

Price

Place

Promotion

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PRODUCT
People satisfy their needs and wants with products and services, a product is anything that
can be offered to a market to satisfy a need or want- The concept of product is not limited to
physical objects - anything capable of satisfying a need can be called a
Product. Haidri Beverages is the company that has taken up the franchise to produce Pepsi
for the area of Maharashtra and Delhi. The production capacity of the plant is to produce
73,000 cases of 24 bottles of 250-ml. For this reason the company has three lines of
production to fulfill the ever-growing demand. Pepsi is one of the core products of the
organization and the company puts in a lot of effort to retain its image through its highly
professional team. The members of the organization work day and night making every
possible effort to attain the organizational goals.
PRICE
Price is the amount of money the customers are willing to pay to obtain that particular
product. Providing quality products at the lowest possible price had always been one of
the main concerns of Pepsi. One of the ways by which the company has been able to assist
this effort is by increasing the use of inexpensive and recyclable plastic bottles. The
government policy, at times, makes a lot of difference as the government may increase the
freight charges, the prices of glass,or the prices of steel. Thus the overall price of the product
also gets affected. The price of Pepsi Cola is very reasonable as compared to other drinks and
the
Management makes every effort to make the product at the lowest possible cost butthe
highest quality. Pepsi wants its product to be available to all PRICING STRUTCTURE:PLACE
Place includes the company activities that make the product available to targetconsumers.
Pepsi Cola is placed in the market according to the extent of the targetmarket located in that
particular geographical area. Haidri Beverages place their product in the market with the
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help of its indirect distribution network. The retail stores are spread all around the franchised
area in order to ensure the availability of the product all the year round. The major retail
stores located in Maharashtra and Delhi are in the Blue Area, Jinnah Super Market, Super
Market, and in almost every sector of Islamabad. The entire DELHI Cantonment and the
entire city as well have many retail outlets where Pepsi is available in abundance. The
distribution network also works according to the promotional campaign or the season. For
example, in the cricket season the company tries to make the product available in areas where
Cricket is being played.

Pepsi covers almost 95% of total area.

It sells through local retailers.

It is available everywhere

.PROMOTION
Promotion means activities that communicate the merits of the product in order to persuade
the target customers to buy it. Promotion plays a vital role in the successor failure of a
product. Promotion of the right product at the right time is an ideal situation for a company.
Pepsi is one of those products on which the franchisers spend millions of Dollars/Rupees for
its promotion. Haidri Beverages invest a huge amount of money on the promotional
campaigns of Pepsi. There are different ways of promoting a product through retailing,
personal selling, and advertising. The company strongly emphasizes on advertisements as the
other two methods area not much effective in attracting the attention of their target audience.
Huge amount of money spend on advertisement on T.V, Magazines, And Banners. It sponsor
seaward functions and sports activities.
3.3 MARKETING SYSTEM
Product:
Pepsi carbonated water, sugar, added flavor package & drinking water. Introduction of
Natural color drink is on the cards.
Positioning:
Besides retailing, the company focuses on institutional sales, special event to make the
product available for additional mileage.
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Price:
The company maintains a steady price due to tight competition. It encourages more retail
margin as compared to the competitors. However, company does not believe in
compromising the quality of the product.
Promotion: Schemes & incentives are also given keeping on eye on the competitive activity
from time to time. Company has also introduced a consumer awareness scheme to create
better brand awareness of the product.
Publicity: A company as promotional measure for value sale gives publicity. Adequate point
of purchase materials, adequate display materials & participation in important local festival
are also a part of promotional measure of the company.
Channel of Distribution: Distributors are appointed all over Orissa for marketing the
product. Customer executives appointed by the company support them.
Marketing Strategy: Besides stamping the urban market, the companys focus is on
penetration in the periphery rural area.
The Manufacturing Process : The process of manufacturing of aerated water (Soft Drinks)
& fruit Juice under PepsiCo Brand is divided into mainly five parts such as:

Water Treatment

Syrup Making

Bottle Washing

Filling

Crowning & Coding

Testing of the product

Water Treatment:
Water Treatment is very essential in soft drinks plant as the nature & quality of water varies
from place to place. To set uniform & standard water the process of treatment is carried on.
The water taken from bore well by the help of water pump & pipe lines are collected in a
storage tank where is pre-chlorinated by chlorinate & then by the help of pipelines comes to a
treatment tank called coagulator tank where this water solution of different strength of
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bleaching powder, ferrous sulphate, hydrate line are added through dosing pump to reduce
alkalinity, hardness & kill the bacteria. A mechanical stirrer mixes the chemical & then the
suspended water settles down as sludge & clean water passes through retention tank. From
this tank, the water passes through sand filter containing fine sand & pebbles & carbon filter
contains granular carbon & finally through water polisher, micron filter, UV lamp to ensure
clear & sanitary water for use. Further water used in the bottle washer & boiler needs
softening. For this purpose the water from storage tank, after passing through two filter beds
containing fine sand & granular carbon happens.
Through a bed of resin where it is softened, this soft water is essential for use in bottle
washer to reduce scale formation inside the machine.
Syrup Making : For syrup making of a particular brand, collect quantity of sugar, water
activated carbon (Powder) & Hyflow super cell known as filter aid are taken into a sugar
dissolving tank which is specially designed making a vacuum space to enter steam & also
fitted by a motor with agitator. Sugar syrup called raw syrup is prepared by developing the
sugar with continuous stirring & heating by steam supplied by oil-fired boiler. This hot syrup
with the help of a pump is filtered through a filter press attach with a series of quality filter
paper to separate out carbonated particles.
Bottle Washing: Bottle Washing is an important part in soft drink plant. The emptied durable
& returnable bottles are used & returned from market in plastic crates are fed to bottle
washing machine. The machine double end system with circular chin to carry the bottles
caustic soda, tri-sodium phosphate & sodium-gluconate are added to the caustic tank filled in
with water heated by steam supplied by the boiler. The empty bottles enter to the hot caustic
tank in one end & after being cleaned by the hot caustic solution & finally washed with water
through spray-jets fitted are discharged in other end. Then washed bottles pass on conveyor
chain against laminated board for further inspection in the direction filling machine.
Filling: Finished syrup &treated water line are connected to a dosing pump which mixes
syrup & water with the ratio of 1:5 & syrup mixed with water entered to carbonated tank to
mix with carbon dioxide gas are preserved in cylinder for use. The cylinders are connected
through CO2 manifold tank to use requisite quantity of gas. The syrup passes through PHE,
which is cooled itself by circulation of chilled, glycol supplied chilling compressor. To run

27

the machine F-22 gas is used. The syrup being chilled easily mixes with CO 2 gas & enters to
the filter for bottling. The filter is fitted with filling valves & lift Cylinders.
Crowning & Coding: After beverage is filled in bottles it immediately goes to the crowner
where with the help of crown crock the bottles are sealed to protect the carbonating, flavor,
outside contamination & spoilage till the contained beverage is consumed.
Then sealed bottles passed on the conveyor chain are coded by a coding machine on their
way to out end. The sealed bottles are inspected properly against inspection light while
passing through the conveyor fitted with SS chain. The empty plastic crates passing through a
conveyor enter to crate washer machine & it is washed & moves through the conveyor where
finished products are accumulated. Then the products are kept in plastic crates, which are
durable in nature & returnable by buyer, put on palates & sent to shipping for shipment.
Test of Products: Finally the finished syrup during bottling is tested in laboratory to meet
the permanent & also to get standard & quality products.
3.4 Performance with Purpose

Performance with Purpose articulates PepsiCo India's belief that its businesses are
intrinsically connected to the communities and world that surrounds it. Performance with
Purpose means delivering superior financial performance at the same time as we improve
the world.

To deliver on this commitment, PepsiCo India will build on the incredibly strong
foundation of achievement and scale up its initiatives while focusing on the following 4
critical areas that have a business link and where we believe that we can have the most
impact.

PepsiCo India continues to replenish water & expand its expertise in water conservation
PepsiCo

PepsiCo Indias Agri-Partnerships with farmers helps farmers across the country earn
more.

PepsiCo India continues to convert waste to wealth, to make our cities cleaner. This
award

winning initiative will establish zero solid waste centers in districts throughout.

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PepsiCo India will stay committed to the health & well-being of children. It will continue
to provide children with a healthy & fun portfolio while simultaneously tackling the
calories outside of the equation by expanding its gets an active programme for kids
especially for school going children.

PepsiCo logos

PEPSI

SEASONS BEST

DIET PEPSI

LIPTON ICE TEA

PEPSI ONE

TROPICANA JUI

PEPSI MAX

GATORADE

SABRITAS

RUFFLES

FRAPPUCCINO

7UP

MIRINDA

LAYS

MOUNTAIN DEW

SIERRA MIST

AQUAFINA

DORITOS

DOLE JUICE

TOSTITOS
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ROLD GOLD

SOBE

PepsiCo Brands

Pepsi The mother product. It is a carbonated water.

Slice is a line of fruit-flavored soft drinks.

7 Up is a brand of a lemon-lime flavored non caffeinated soft drink.

Mirinda is a brand of soft drink available in fruit including orange flavors.

Mountain Dew is a caffeinated, sweet, citrus flavored soft drink produced.

Acquafina Mineral Water:

3.5 SEGMENTATION OF MARKET

A market segment consists of a group of customers who share a similar set of needs and
wants. Rather than creating the segment the marketers task is to identify them and decide
which one to target. Leading soft drink company Pepsico follow the similar segmentation
strategy for target marketing.

MASS MARKETING
However in some of its popular product follow the mass marketing strategy. In this type of
segmentation, Pepsico target the whole market and not any particular segment of the
population.

TARGETED MARKETING
Although the targeted group of the company is the whole population, they want to earn more
revenue from a segment than their other revenue generator sources. For this, they
Recognize following bases for segmentation

GEOGRAPHICAL
REGION
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Pepsico treat hot countries such as Asia, Middle East and African differently in comparison
to cold countries. As in tropical countries, consumption of soft drinks is 70%in summer and
30% in winter season while in EUROPEAN countries its consumption is almost uniform. So
soft drink companies prefer different marketing strategies in Asian and European countries.
In countries like India and Pakistan, these companies invest huge resources in the season of
summers, and their target area is domestic users, restaurants, school and college canteens and
even rural chapels. While in winter season their target is mainly party users and high-income
group consumers.
RURAL VS. URBAN MARKET
Pepsico Company is one of the first global majors to have spotted the potential spin offs from
the countrys rural market. Population of Rural sector is more conscious more about the price
whereas Population of Urban sector is more conscious about the quality and brand name of
the product. So Pepsico in Year 2002 bring the 200 ml bottle at Rs.5 specifically targeted at
the rural sector so that soft drink can take place of the local
drink like lemon, sugarcane juice and Tea etc. Both the companies Coca-Cola and Pepsico
have adopted different marketing strategy for rural and urban areas

DEMOGRAPHIC SEGMENTATION
AGE
India is considered to be a young country i.e. average age of Indian population is less 38
years. Thus targeting young generation can be a beneficial marketing strategy for soft drink
Companies. In fact this is the case, all the major brands like Pepsico, coca cola, and thumps
up, mainly target younger generation in India. In Europe, as average population is older
than Asian countries, Coca cola targeted the older generation of the population. Similarly in
USA, Pepsico targeted the generation X (younger generation) as they comprises majority of
the population and they positioned Pepsico in the mind of youth that Pepsico is for the youth
GENDER
Gender based segmentation is very important. As taste of male and female is different. Lets
take the example of mountain dew is promoted as masculine soft drinks while Fanta are

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having light taste and mainly targeted for loving birds, ladies, and children. In Pepsico,
Miranda orange flavour is popular among Ladies, girls, and children.

BRAND REVITALIZATION
To recover and reposition brand in mind of consumer when it is not working successfully is
known as Brand Revitalization. So there is an interesting example how brand repositioning
helps in recovering and growth of the product. Pepsico initially introduced Mountain Dew in
1969 and marketed it with the countrified tagline Yahoo Mountain Dew! Itll tickle your
inwards. By the 1990s, the brand was languishing on store shelves despite an attempt to
evolve the image with outdoor action scenes. To turn the brand around, Mountain Dew
updated the packaging and launched ads featuring a group of anonymous young males-the
Dew Dudes participating in extreme sports such as bungee jumping, skydiving, and
snowboarding while consuming mountain dew the brand slogan became do the DEW. The
brands successful pursuit of young soda drinkers led to mountain dew challenging diet coke
to become the number three selling soft drink in terms of market share by 2000.

3.6 PEPSICO POSITIONING

Firstly the Pepsico in America try to position its product for the society as whole and for the
purpose of refreshment, which can be clearly visible from their advertisement slogans like

any whether is Pepsico whether

the light refreshment

be sociable, have a Pepsico

This positioning strategy they followed up to 1960 and after analysing that it is very difficult
to capture whole population as whole. So Pepsico after 1960 started targeted marketing.
Pepsico targeted the youth section and position there product as a necessity for youth and
Pepsico advertisement slogan after 1960 try to position Pepsico as the brand for youth which
are clearly visible from there advertisement as follow

now its Pepsico for those who thing young

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come alive, youre in Pepsico generation

youre got a lot to live and Pepsico

yeh hai youngistaan meri jaan (in India)

Taste the once thats forever young

In the 1960s and early 1970s, Pepsico was a much more aggressive and innovate company
than coke. In this period Pepsico outflank coke to survive. IN early 1975s Pepsico introduced
the Pepsico challenge marketing campaign where Pepsico set up a blind tasting between
Pepsico-cola In this Pepsico started direct road show taste competition in which two glass of
soft drink one is Pepsico and another is Coke is given to person not known by him which
glass contain which soft drink and after tasting both the glasses they ask which soft drink is
having better taste. In this competition Pepsico said 80% of people like Pepsico taste over
Coke. Pepsico took this a great advantage of the campaign with television commercial
reporting the test results to the public. So through this competition Pepsico is able to position
itself in the mind of customer that Pepsico have better the taste than coke.
Pepsico was parted ways with Shah Rukh khan, Sachin tendulkar, Rahul dravid,
Sourav ganguly, Mahender Singh dhoni, Ranbir kapoor, Deepika padukone, Ishant sharma,
Rohit sharma, Shreeshant and Virender sehwag to strengthen its youngistaan brigade.
Pepsico signed Asin (of Ghajini fame) to take war to orange flavour category. Pepsico had
tied up with Chennai super kings for its 7up brand, which is the most preferred drink there.
Pepsico has also signed on Telegu movie actor Ram charanteja as part of its youngistaan
campaign to endorse Pepsico in Andhra Prad

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3.7 SWOT Analysis of PepsiCo

STRENGTH OF PEPSICO INDIA:

Its brand.

Huge market coverage, company existence not only in urban area but also in the rural
area

Large number of product line to satisfy consumer.

Verity of scheme for the retailer throughout the year. So, that retailer will earn huge
profit and also get satisfaction after selling PepsiCo product.

Company also gives time to time schemes for the consumer. So that, final consumer
interest for repurchase &enjoy the benefit.

PepsiCo Indias Agri-Partnerships with farmers help farmers across the country earn
more.

Good CSR Image.

WEAKNESS PEPSICO INDIA:

In distribution channel distributor is the additional person which is not responsible

for the company, because there is no direct link between company and the retailer.

Sales person also not feel that they are working for company, they think only for the
distributor.

Pepsi the brand is not appreciated by the BBSR consumer, which is mother product.

OPPORTUNITY OF PEPSICO INDIA

Pepsi could develop new products or product designing of Pepsi

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Brand for the BBSR market

Competitors have poor products such as Fanta, limca.

End-users respond to new ideas, such as launch other flavor of slice.

Pepsi have a great chance to extend to rural area.

New specialist applications, such as Sponsorship, trade fair, free sample.

THREATS OF PEPSICO INDIA

Market demand very seasonal.

Retention of key staff is critical.

Retailer distract from core business, such as retailer demanded to keep slice only and
not for Pepsi.

Legislation could impact; mean local taxation policy and business policy of state &
central government.

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3.8 CONCLUSION
Pepsico throughout i s long history has been using all fours marketing strategy from ansoff
matrix marketing presentation, market development, product development and
diversification. Each of these strategies contributes to the company success. Still it is
diversification which is mostly used by pepsico.
Pepsico implemented the market penetration strategy by employing the tactic of product-line
stretching. Through the aggressive and innovative advertising Pepsico attracted new and kept
existing customers. The company has been introducing and developing new products like
Pepsi mix and ideas in order to increase and protect its market share. Its creativity and
effectiveness has determined PepsiCos place with regard to profit, sale and customer loyalty.
Pepsi has relied on the development of new product. Pepsico focused on exploring new
market especially in foreign. The market strategy is effective adopted by pepsico. The
diversification strategy is strategy carrying high risk; Pepsi has been prosperous due to
business foresight and effective control mechanism.

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3.9 BIBLIOGRAPHY
Books Referred: Marketing:-

Philip Kotler

Marketing management

Rajan Saxena

Web sites :http://www.pepsico.com/Company/PepsiCo-Values-and-Philosophy.html

http://www.pepsico.com/Company/Our-Mission-and-Vision.html
http://www.pepsico.com/Company/The-PepsiCo-Family/PepsiCo-Americas-Beverages.html

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