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PEPSICO IN INDIA
PepsiCo gained entry to India in 1988 by creating a joint venture with the Punjab
government-owned Punjab Agro Industrial Corporation (PAIC) and 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 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 huge multinational companies." Indeed, some argue that
PepsiCo and The Coca-Cola Company have "been major targets in part because
they are well-known foreign companies that draw plenty of attention."
The Coca-Cola Company and PepsiCo angrily denied allegations that their
products manufactured in India contained toxin levels far above the norms
permitted in the developed world. But an Indian parliamentary committee, in
2004, backed up CSE's findings and a government-appointed committee, is now
trying to develop the world's first pesticides standards for soft drinks. Coke and
PepsiCo opposed the move, arguing that lab tests aren't reliable enough to
detect minute traces of pesticides in complex drinks. On December 7, 2004,
India's Supreme Court ruled that both PepsiCo and competitor The Coca-Cola
Company must label all cans and bottles of the respective soft drinks with a
consumer warning after tests showed unacceptable levels of residual pesticides.
[citation needed]
Both companies continue to maintain that their products meet all international
safety standards without yet implementing the Supreme Court ruling. As of
2005, The Coca-Cola Company and PepsiCo together hold 95% market share of
soft-drink sales in India. PepsiCo has also been accused by the Puthussery
panchayat in the Palakkad district in Kerala, India, of practicing "water piracy"
due to its role in exploitation of ground water resources resulting in scarcity of
drinking water for the panchayat's residents, who have been pressuring the
government to close down the PepsiCo unit in the village.
In 2006, the CSE again found that soda drinks, including both Pepsi and Coca-
Cola, had high levels of pesticides in their drinks. Both PepsiCo and The Coca-
Cola Company maintain that their drinks are safe for consumption and have
published newspaper advertisements that say 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, sale and production of Pepsi-Cola, along with other soft
drinks, was banned by the state government in 2006, but this was reversed by
the Kerala High Court merely a month later. Five other Indian states have
announced partial bans on the drinks in schools, colleges and hospitals.
BRAND PORTFOLIO
PepsiCo owns 5 different billion-dollar brands. These are Pepsi, Tropicana, Frito-
Lay, Quaker, and Gatorade. The company owns many other brands as well.
Pepsi, Caffeine-Free Pepsi, Diet Pepsi/Pepsi Light, Caffeine-Free Diet Pepsi,
Caffeine-Free Pepsi Light, Wild Cherry Pepsi, Pepsi Lime, Pepsi Max, Pepsi Twist
and Pepsi ONE.
Other U.S. carbonated soft drinks, including Mountain Dew, Mug Root Beer,
Sierra Mist, Tropicana Twister Soda and Frawg,
Quaker Oats brands: Aunt Jemima, Cap'n Crunch, Coqueiro, Crisp'ums, Cruesli,
FrescAvena, King Vitaman, Life, Oatso Simple,Quake, Quisp, Rice-A-Roni, and
Spudz
In 2007, Nooyi spent $1.3 billion on healthier-alternative brands like Naked Juice,
a California maker of soy drinks and organic juice.
PEPSI-COLA BRANDS
• Pepsi-Cola
• Diet Pepsi
• Slice
• Pepsi Blue
• Pepsi Lemon
• Mirinda
• 7 up
• Fruko
• Lay’s Fries
• 3D’s snacks
• Kurkure
• Cheetos
TROPICANA BRANDS
• Tropicana pure premium juices
• Tropicana smoothies
• Naked juice
• Copella juices
QUAKER BRANDS
• Quaker oatmeal
• Puffed wheat
• Quaker bakeries
• Quaker’s fruit
• Corn goods
BRAND AMBASSADORS
The most basic marketing tool is product which includes product design, quality,
features, branding, and packaging.
A critical marketing tool is price i.e. the amount of money that customers pay for
the product. It also includes discounts, allowances, credit terms and payment
period.
Place is another key marketing mix tool. And it includes various activities the
company undertakes to make the product accessible and available to the
customer. Some factors that decide the place are transport facilities, channels of
distribution, coverage area, etc.
Promotion is the fourth marketing mix tool which includes all the activities that
the company undertakes to communicate and promote its product to target
market. Promotion includes sales promotion, advertising, sales force, public
relations, direct marketing, etc.
Pepsi - Product
The Pepsi-Cola drink contains basic ingredients found in most
other similar drinks including carbonated water, high fructose
corn syrup, sugar, colorings, phosphoric acid, caffeine, citric
acid and natural flavors. The caffeine free Pepsi-Cola contains
the same ingredients but no caffeine.
Pepsi – Price
Pepsi again decides it price on the basis of competition. The best think about the
company Pepsi is that it is very flexible and it can come down with the price very
quickly. The company is renowned to bring the price down even up to half if
needed.
But this risk taking attitude has also earned Pepsi losses. Though lowering the
price would attract the customers but it would not help them cover up the cost
incurred in production hence causing them losses. This was the situation earlier
but now Pepsi is a full-fledged and growing company. It has covered all its losses
and is now growing at a rapid rate.
Pepsi – Place
Pepsi again has spread worldwide. Pepsi when entering a new market does not
go in alone but it looks for partners and mergers. Till now Pepsi has collaborated
with companies like Quaker Oats, Frito-lays, Lipton, Starbucks, etc. Pepsi like
Coke has spread all over the world. It is because of this worldwide spread that
now it is coming up with Advertisements which can be broadcasted in the
different nations in the world. The recent example with would be the Pepsi
advertisements having David Beckham as it brand ambassador.
Pepsi- Promotion
Pepsi promotes its products by personal selling, advertising, and sales
promotion. For advertising, and sales promotion it used printed and electronic
media. Every newspaper and magazine carry Pepsi advertisements.
Advertisement of Pepsi are eye catching and attractive. Through advertising it
informs the consumer about new brands and flavours. Pepsi designs its sales
promotion strategies and advertisement campaign focusing strictly on the target
markets. 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. Sponsoring the pop industry and the cricketing team
helped Pepsi hit right on target of their primary market which consists of
teenagers.
The management of PEPSI uses both the skimming and penetration pricing
strategy. The brands, which has price greater than Pepsi beverage is skimming
pricing strategy, and brands having prices less than one can of Pepsi adopted
penetration-pricing strategy. By adopting skimming they are earning more profit
and by penetration they attract the customers and consolidating position in the
market. They have to adopt both strategies because they are facing established
competition in the market, e.g. In beginning the main competitors for Pepsi are
Coca cola & RC, now their major competitor is Coca cola.
MARKET COMPETITION; PEPSICO
VS COCA COLA
Capturing the market is the main issue facing any company and when it comes
to Beverage market, it becomes more intense because there are just two players
and they are fighting strongly to capture each others market and don't have any
other option. Both Coke and Pepsi are trying to gain market share in this
beverage market, which is valued at over $30 billion a year. Just how is this done
in such a competitive market is the underlying issue. The facts are that each
company is coming up with new products and ideas in order to increase their
market share. Pepsi has always taken the lead in developing new products, but
Coke soon learned their lesson and started to do the same. Coke hired marketing
executives with good track records (98). Coke also implemented cross training of
managers so it would be more difficult for cliques to form within the company
The next step is to take fast action to develop a product that meets the
requirements for that particular region. Both companies cannot just sell one
product; if they do they will not succeed. They have to always be creating and
updating their marketing plans and products. The companies must be willing to
accommodate their “target markets”. Gaining market share occurs when a
company stays one-step ahead of the competition by knowing what the
consumer wants. My recommendation is to make sure the company is always
doing market research. This way they are able to get as much feedback as
possible from consumers. Next, analyze this data as fast as possible, and then
develop the new product based upon this data. Once the product is developed,
get it to the marketplace quickly. Time is a very critical factor. In my opinion,
with all of these factors taken into consideration any company should give any
company a good jump on market share.
Coke Pepsi
The main dark cola drink of the Pepsi version of dark cola which is the
company which started the rivalry major primary competitor to Coke.
between these companies.
Tropicana Products is an
Minute Maid is a product line American company based in
of beverages, usually Bradenton, Florida, USA,
associated with orange juice, which is one of the world's
but now extends to soft largest producers and
drinks of many kinds. The marketers of orange juice. It
Minute Maid company is now has been owned by PepsiCo,
owned by Coca-Cola, and is Inc. since 1998.
the world's largest marketer
of fruit juices and drinks. It is
headquartered in Houston,
Texas.
• Number one maker of snacks, such as corn chips and potato chips
Weakness
• Pepsi hard to inspire vision and direction for large global company.
Opportunity
• Food division should expand internationally
Threats
• F&B industry is mature
• Pepsi is blamed for pesticide residues in their products in one of their most
promising emerging market e.g in India
BIBLIOGRAPHY
www.google.com
www.pepsico.com
www.wikipedia.org
www.lilianilim.com
www.freeessay.cc
www.amazines.com
SAMRAT MUKHERJEE 74
SUMAN KR. SASMAL 104
MITANJALI KAR 49
ANAMIKA DAS 09
MANISHA MAJI 43
SUBHANKAR MAJUMDER 98
SNIGDHA CHAKROBORTY 86