Indian Institute

Of Foreign Trade

Team Error 404 :

Team Name Not

Utkarsh Modi

Sanjana
Bhatia

Girish Sharma

Digital Consumer

The Right Model

Innovation at
MyPepsi

Distribution, GTM
Strategy and Margins

Achievers

Capabilities and
Impact
Pepsi uses the user

Profiling the Digital Consumer

Who
Who is
is the
the e-Consumer?
e-Consumer?

Young Turks

Go Getters

Achievers

Age
15-18
21-29
30-45
Geography Urban, Upper Urban Tier 1 SEC A,B Urban, Upper SEC
&
SEC
Tier 2 SEC A
Demographi
c
Employment
Students
Students/Working Full time working
Visit
Medium,
Very high, look for Low, as per need
frequency &
mostly
best deals
pattern
browsing
Deciders.
Aware about various
Need based.
Purchase
Financially
platforms &
Financially stable
trend
Dependent
offerings, high
but look for cost
for purchase
impulse buys,
effectiveness
customised
purchases
Spending
Limited,
Regular, highest
Comfy with card
Trend
mostly COD
redemption of
payment but
points & coupons
prefer COD
Category
Very high
Very High
Medium
affinity
Easily
Aggressive
Loyal to limited
A Typical
Digital Shoppers Life for Pepsi
Psychograp
influenced, aspirational youth &
platforms &
hics
financial
innovators, do not
brands. Refer to
dependence
shy away from
reviews for a new
impedes
voicing opinion
purchase
purchase
through feedback
Meanwhile, Pep is
Si wakes up and
waiting with Pepsi
starts the day with a
combos at Fun
healthy meal of
cinema, his tickets and

reviews, ratings
and customer
behaviour through
Big Data and
analytics to make
customised offers
and future product
offerings

Pep and Si have

their workouts in
evening and order
Gatorade Fuel pack
on an e-tailer site as
it is unavailable

They find a value Pepsi

meal at a restro nearby
to delivered in 30 mins
on the MyPepsi
They surfportal.They book it
online foronline
a
and earn reward
good place
points.
for meal on
MyPepsi
App/Portal

Diwali is around
the corner.
Pep orders
customised
Kurkure and
Pepsi gift
packs from the

The Right Model

Innovation at
MyPepsi

The Case for Existing E-tailers

Digital shoppers look for cost,

convenience and variety, quick
delivery while making a purchase.
Opening up an own portal for Pepsi
would ensure the undivided attention of
the customers and also allow Pepsi to
promote and sell its full range of
offerings with the right positioning
and desired price points.
However the question is whether
Customers would log on to the
MyPepsi portal exclusively to buy
Pepsi products given its mass
availability and would it be feasible
for Pepsi to cater to small individual
orders?
We recommend a multi service
MyPepsi portal in addition to the tie
up with exiting e-tailers.

In the short term before the MyPepsi portal

becomes fully scalable and widens is reach,
Pepsi can explore existing e-tailers like
Amazon, Flipkart and Snapdeal to sell its
products via the e-commerce route.
With greater no. of customers looking for
convenience, cost and variety, Pepsi can
launch both its mass as well as niche
products here.
Key drivers would be tapping on impulse
purchase of customers and preventing
distractions in the form of competing
offerings. Launching Products exclusively
on the web, product bundles, social
media plugins, discounts, customized
packs for festivities, reward points for
purchase and quick delivery would help
drive the sales.
We recommend the following KPIs to
monitor the effectiveness of the plan:

Portfolio offered
User Rating and Reviews

Capabilities and
Impact
MyPepsiShopper
Product of the
Week Engagement

Distribution, GTM
Strategy and Margins

MyPepsi Portal +App

Integration of Direct
and Online
Purchasing

Choosing
Choosing the
the Right
Right Model
Model

Digital Consumer

Create a buzz around a

specific(low selling)
product from the Pepsi
portfolio on MyPepsi portal
and the e-tailer partner
offering customized deals for
the product. The buzz can be
extended through the
social media platforms of
Pepsi.

MyPepsi Deals
Offer exclusive
deals/coupons on
MyPepsi portal/mobile app
or e-tailer site.
Tie Ups with Multiplexes
to pre-order Pepsi
Combo deals online.
Tie Up with Mobile
Recharge sites to
redeem/earn MyPepsi
points for every online
purchase.
Free Songs download

Digital Consumer

The Right Model

Innovation at
MyPepsi

Distribution, GTM
Strategy and Margins

Growing beyond the Mid Afternoon and Evening Consumption

Segments through MyPepsi

Innovation
Innovation through
through E-Commerce
E-Commerce

Book your Healthy Breakfast Combi

Meal on MyPepsi
Cooked Quaker Oats/Poha/Upma +
Tropicana Juice Variants
Served between 7 AM to 11 AM.

Order can be taken by the Pepsi App or

the MyPepsi portal online. Based on the
order location, the nearest Pepsi
affiliated Restaurant delivers the order
in 30-45 minutes to the customer.
This initiative can be run on a pilot basis in
a city like Delhi where our survey findings
predict a high level of acceptance to the
concept making it feasible.

Capabilities and
Impact

Hungry for Pepsi Meals in the Night?

PepsiCo can partner with Night Food
providers like Midnight Munchies, Batman
Delivers, FlyByKnight etc. (In Delhi/NCR) to
provide all night Pepsi Meals through
the MyPepsi portals.
The logistics is taken care by the partner
which gets a wider reach to sell its
meals in combo with Pepsis
assortment of snacks and drinks.

Our Survey conducted among 12 such

service providers indicated a willingness to
tie up exclusively with Pepsi for such an
Combi Pepsi Meals at my Fingertips
MyPepsi portal and Mobile App initiative.
can
provide different Meal options combined
with Pepsi products.
Pepsi can create a model in which they
have a network of Pepsi affiliated
restaurants across different localities
in a city.
This synergy
Customized Meal options including
would be
mutually
Pepsi or any of the portfolio products
beneficial to
can then be listed on the MyPepsi
both Pepsi and
us as we see a
portal based on the nearest
shift to online
restaurant from the customers
orders FlyByNigh
Neha Jain, Co-Founder

Distribution
Distribution Model
Model for
for the
the E-Commerce
E-Commerce Portal
Portal

Digital Consumer

The Right Model

Innovation at MyPepsi

The Exclusive MyPepsi

Retailer (MPR) Network
Widely distributed network of affiliated
retailers At least 1 affiliated retailer in 3 km radius
(52 Retailers across Delhi Refer to
Excel)
Affiliation on fulfilling criteria
Maintenance of optimum inventory of listed
SKUs
Delivery within 1 hour span
Continuous operation within delivery
timings
An MPR is a super market or high
capacity retailer.
It has to make delivery provisions as per the
MyPepsi delivery compliance guidelines.
E-Commerce
Incentives to MPRChannel
Additional margin to tune of 1.2 times (for

pilot)
Selling Price
Zonal traffic routed to MPR
Retailer Margin

Dist Margin
Pepsi Revenue
COP+Other
Costs
Pepsi Margin
Gross Margin as
% of sales

Distribution, GTM
Strategy and
Margins

Capabilities and
Impact

GTM Strategy for the E-Commerce Initiative of Pepsi

Value

E-Commerce Scenario refers to order processing through E-Channel, this

excercise is done to calculate chaged gross margin in E-Commerce Channel

100
10.91
89.09
4.33
84.76

Retailer Margin will increase to 12%

Distributor Margin will remain same

= Selling Price - Retailer Margin - Distributor Margin

40.74
44.03

Refers to Cost of production + other operating costs per 100 Rs. Revenue
= Pepsi Revenue - COP - Other Costs
Changed Gross Margin- Change is due to extra incentive provided to retailer
directly by Pepsi

0.52

Margins in the E-Commerce Channel (Refer to the Detailed

E-Commerce
E-Commerce Capabilities
Capabilities Map
Map :: Architecture
Architecture for
for
Effectiveness
Effectiveness

Digital Consumer

The Right Model

Innovation at
MyPepsi

Distribution, GTM
Strategy and Margins

Capabilities and
Impact

Year
Sales Increased
COGS
Web
Content
Hosting Partner SEO/SEM to
Campaign
Development
improve page rankManagem
Management /
Team
MyPepsi
Portal / App
Deliveryent
Channel Social Media

2015
46954545.
45
22107252.
3
24847293.
16

Operating Profit

Extra Expenses
23109727.
Affiliation on fulfilling criteria
Incurred
Increased storage/warehouse
maintenance
Detailed P&L Analysis of 27
the Whole Plan with

of optimum inventory of listed

space for inventory
Cold chain storage
SKUs,
1737565.8
assumptions
continuous operation within
84
Impact Net Profit
Distributor/Retailer
delivery timings
Distributor/Retailer would need enhanced
At least 1 affiliated retailer inventory.
in 3
Delivery times would have to
Speedy Delivery Adherence
Maintenance of optimum
km radius
greatly
reduce.
to MyPepsi Portal Standards
inventory of listed SKUs
Strong Incentives needed for
Restaurants/Partners to establish better
delivery channels.
Partner Restaurants/ Night Meal Providers
To minimize channel conflict, offline
retailers and distributors are involved in
the network.
Big Data : Digitised data will help the
company understand consumer demand
Customer Care/Analytics Team better, allow it to look at data and decide
App Developer
Payment Gateway
CRM Team Big Data Team on consumer or retailer surveys, to look
rd
for qualitative inputs.
3 Party Services
Challenges