Beruflich Dokumente
Kultur Dokumente
1. ACKNOWLEDGEMENT
2. CERTIFICATE
3. EXECUTIVE SUMMARY
4. OBJECTIVE
5. COMPANY OVERVIEW
6. RESEARCH METHODOLOGY
9. PEST ANALYSIS
19. BIBLIOGRAPHY
ACKNOWLEDGEMENT
I owe a great many thanks to a great many people who helped and supported me during the writing of this
project.
My deepest thanks to Assistant Professor, Mr. Gautum Nagi the Guide of the project for guiding and
correcting various documents of mine with attention and care. She has taken pain to go through the project
and made necessary correction as and when needed.
I express our thanks to the Director Dr. Chavi Sharma, FACULTY OF MANAGEMENT STUDIES,
FARIDABAD for extending her support.
My deep sense of gratitude to all who provided support and guidance. Thanks and appreciation to the helpful
people for their support.
I would also like to thank my Institution and my faculty members without whom this project would have
been a distant reality. I also extend my heartfelt thanks to my family and well wishers.
ROLIKA SETH
CERTIFICATE
OBJECTIVE
1. The main purpose of this study is determine the different strategies that are adopted by the companies.
2. The strategies will be evaluated to see which is the best amongst them and which are most effective.
ABSTRACT
I have decided to present our marketing term paper on PepsiCo after studying its marketing strategies. I
worked on PepsiCo’s product range of beverages and focused on Pepsi Cola as the subject of our analysis.
I have chosen Pepsi for many reasons. It is one of the biggest FMCG brands not only in India but also
globally. Indeed, Pepsi Cola is one of the fastest paced FMCG products worldwide. Pepsi posed an exciting
opportunity to study a brand that is automatically associated with youth and energy.
I worked on Pepsi in order to understand the various aspects of its marketing strategy that has made it the
Number 1 Cola drink in India. Our team focused on its strategies viz. Coca Cola especially in the city of
New Delhi. I have also researched extensively on Pepsi’s distribution network and have made suggestions as
to how it can further improve its reach among users in the future.
Unlike global trends, half of the distribution of Pepsi in India done by Company Owned Bottling
Operations (COBOs)
Very low brand loyalty among consumers, so sales depend on timely product availability
PepsiCo, Inc., established in 1965 through the merger of Pepsi-Cola and Frito-Lay is a world leader in
convenient foods and beverages. The company consists of Frito-Lay North America, PepsiCo Beverages
North America, PepsiCo International and Quaker Foods North America. PepsiCo brands are available in
nearly 200 countries and territories. Its success is the result of superior products, high standards of
performance, distinctive competitive strategies and the high level of integrity of its employees.
PepsiCo offers product choices to meet a broad variety of needs and preference from fun-for-you items to
product choices that contribute to healthier lifestyles. The company's principal businesses include:
Frito-Lay snacks
Pepsi-Cola beverages
Tropicana juices
Quaker Foods
PepsiCo’s mission is “To be the world's premier consumer products company focused on convenient foods
and beverages. We seek to produce healthy 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.
The company has two major divisions that are operational in India. The first division is the traditional
Beverages Division. The second division, and the subject matter of this report, is the Snack Food Division.
The company has 37 bottling plants in India, and one company-owned concentrate plant. Pepsi keeps its
Pepsi Cola
Diet Pepsi
7 Up
Mirinda
Mountain Dew
Slice
Tropicana Juices
Aquafina
There is a subdivision of the Beverages division which is under the name of Tropicana Products, Inc., parent
company headquartered in Bradenton, Florida, and is a division of PepsiCo. In India, the company is
Keeping with the core Pepsi thrust toward youth, Tropicana is dedicated to producing pure premium juices
essential for an active and youthful lifestyle. The juices of the commonly available fruits produced, packaged
and marketed by Tropicana contain naturally occurring components to promote good health.
With a 50-plus year history of consistent growth Tropicana today stands as the world’s only global citrus
juice business!
PepsiCo International
Pepsi-Cola began selling its products outside the United States and Canada in the mid-1930s, opening in the
United Kingdom in 1936. Operations grew rapidly beginning in the 1950s. Today, PepsiCo beverages are
available in nearly 200 countries and territories. Some of the major brands include Pepsi, Mountain Dew,
In addition to brands marketed in the United States, PepsiCo International brands include Mirinda, Seven-
Three major sustainable advantages give PepsiCo a competitive edge as they operate in the global
marketplace,
Their extraordinarily talented and dedicated workforce optimizes these advantages and creates magic in the
market place. Investing in innovation fuels the brands and this in turn drives top-line growth. Dollars from
that top-line growth are strategically reinvested back into new products and other innovation, along with
1. TOOLS OF RESEARCH
2. RESOURCE OF DATA
A Research Methodology defines the purpose of the research, how it proceeds, how to measure
progress and what constitute success with respect to the objectives determined for carrying out the
research study.
Exploratory research: this kind of research has the primary objective of development of insights into
the problem. It studies the main area where the problem lies and also tries to evaluate some appropriate
courses of action.
The research methodology for the present study has been adopted to reflect these realties and help
reach the logical conclusion in an objective and scientific manner.
NATURE OF DATA
SECONDARY DATA
Secondary data that is already available and published .it could be internal and external source of data.
Internal source: which originates from the specific field or area where research is carried out e.g. publish
broachers, official reports etc.
EXTERNAL SOURCES
This originates outside the field of study like books, periodicals, journals, newspapers and the Internet.
DATA COLLECTION
Secondary data has been used which is collected through articles, reports, journals,
magazines, newspapers reports prepared by research scholars, universities and internet
SOFT DRINK MARKET IN INDIA
India’s one billion people, growing middle class, and low per capita consumption of soft drinks made it a
highly contested prize in the global CSD market in the early twenty-first century. Ten percent of the
country’s population lived in urban areas or large cities and drank ten bottles of soda per year while the vast
remainder lived in rural areas, villages, and small towns where annual per capita consumption was less than
four bottles. Coke and Pepsi dominated the market and together had a consolidated market share above 95%.
While soft drinks were once considered products only for the affluent, by 2003 91% of sales were made to
the lower, middle and upper middle classes. Soft drink sales in India grew 76% between
1998 and 2012 from 8,670 million bottles to over 10,000 million and were expected to grow at least 10% per
year through 2012. In spite of this growth, annual per capita consumption was only 8 8-ounce servings
versus 17 in Pakistan, 73 in Thailand, 173 in the Philippines and 800 in the United States.
With its large population and low consumption, the rural market represents a significant opportunity for
Experts predict that India’s soft drinks market will continue to grow in the coming years, overcoming the
obstacles presented by the difficulty in marketing to such a large and diverse population and the relatively
In addition, the success of smaller pack sizes in the carbonates sector has provided fresh impetus for low cost
packaging, particularly as the major producers look for ways of competing with lower priced local suppliers.
The market preference for soft drinks in India is regional based. While cola drinks have their main markets
in metro cities and northern states of UP, Punjab, Haryana etc., orange flavored drinks are popular in
southern states. Sodas too are sold largely in southern states besides sale through bars. Western markets have
Types
Soft drinks are available in glass bottles, aluminum cans and PET bottles for home consumption. Fountains
also dispense them in disposable containers. The non-alcoholic soft drink beverage market can be divided
into fruit drinks and soft drinks. Soft drinks can be further divided into carbonated and non-carbonated
drinks. Cola, lemon and oranges are carbonated drinks while mango drinks come under the non-carbonated
category. The market can also be segmented based on the types of products. The brands that fall in the Cola
category are Pepsi, Coca-Cola, Thums Up, Diet Coke, Diet Pepsi etc. The non-cola segment can be divided
into 4 categories based on the types of flavors available, namely: Orange, Cloudy, Clear and Mango.
THE BUYER DECISION PROCESS
Hosts of factors play an important role in a buyer’s decision-making process. This process lets him/her
The 4 P’s (Product, Price, Promotion & Place) or the Marketing Mix of a product plays a significant role in
this intricate process. The final decision is made based on the marketing inputs and the various psychological
inputs. Every product is perceived in a certain way or manner. The consumers’ perception of the product is a
vital ingredient and the companies have to ensure that they portray a suitable and strategic image.
The psychological factors (Culture, Attitude, Learning & Perception) also play a critical role in the decision
making process, but a company can do little to influence these factors. However, if the suitable
market/segment is targeted while positioning the product the company can generate positive response from
the marketplace.
PEST ANALYSIS
In order to scan the external macro-environment in which PepsiCo India operates, it is necessary to analyze
various factors that not only posed some serious threats but also influenced its effectiveness.
Political Conditions
Although it began its efforts in the mid-1980s, Pepsi was able to make its entry into the Indian cola
market in June, 1990. This was because of high excise duties and government encouragement of fruit
drinks over carbonated drinks. It was jointly launched by PepsiCo, Punjab Agro Industries Corporation
and Voltas.
Pepsi got into trouble when within six months after its launch it caught government’s attention regarding
its commitment. Soon after, a show cause notice was issued to the company for prima facie violation of
the conditions stipulated in the letter of intent with regards to the production of soft drinks.
Pepsi had a very significant first mover advantage in India. It had obtained the government approval for
its downstream ventures prior to the FDI guidelines that made Indian equity holding mandatory.
The government approval that Pepsi acquired had allowed Pepsi to carry out acquisition of assets to
expand its business in the country. Pepsi used this clause to buy out 100% stake in some domestic
bottling companies including Gujarat Bottling Company, the former Coke franchisee in Ahmedabad.
Economic Conditions
The present Indian soft drinks market can be best described as a duopoly – the players being Pepsi and
Coca Cola. Therefore, Pepsi has sufficient monopoly power over the consumers.
In India, soft drinks market has a fairly high price elasticity of demand which ensures that producers must
strike a balance between prices and sales volume. So Pepsi has decided to peg prices similar to Coca Cola
and try to gain market share and try to gain market share through vigorous promotional activities.
Pepsi was launched in India at the time when the country was trying to open up its economy and was
facing serious doldrums. So at the period of economic instability, Pepsi had to face problems to expand
its operations.
Social Conditions
Rising income of middle class in India is a positive indicator for growth of products like Pepsi and Coca
Cola
Westernized and trendy youth population of India is a another big market for Pepsi products
Booming economy , rising purchasing – power of the people and changing mind sets are factors
Technological Conditions
Pepsi has the technology to maintain a highly efficient distribution network which allows it to satisfy the
Pepsi’s own bottling plants gives it an edge over its competitors in terms of quality of the product and
SWOT ANALYSIS
Strengths Weakness
Opportunity Threats
High brand awareness: - Pepsi is the worlds most famous #2 multi billion dollar brand and Pepsi is the
Large number of distributors: - The company has both franchise owned and company owned operations
in India. Pepsi in Delhi alone has more than 100 distributors. Delhi is totally franchise operations whereas
Wide product offering: - Pepsi is available in glass bottles, aluminum cans and PET bottles for home
consumption. Fountains also dispense them in disposable containers. Also they provide a large number of
flavors.
High accessibility: - Pepsi products are available in shops in the most elite of malls and at the same time
Large advertising budget: - Pepsi has the luxury to spend huge amounts on advertising in a year. This
enormous ad budget allows Pepsi to reinforce their products with reminder advertising and promotions.
This large budget also allows Pepsi to introduce new products and very quickly make the consumer
Wise investments: - . Pepsi also has had the good fortune of making very wise investments. Some of the
best investments have been in their acquiring several large fast food restaurants. They have also made
wise investments in snack food companies like Frito Lay, which at present time is the largest snack
WEAKNESSES:-
Powerful franchisee : - Ironically, the one strength that has been credited for most of its success in the
past has now become a weakness for Pepsi. This former strength is the franchise system. The franchise
system in Pepsi Corporate view has become a liability. Pepsi in today’s market must be able to act as
one instead of several separate units. The franchise system has become a hurdle to Pepsi because
many of these franchises have become very strong and will not be dictated by PepsiCo on how to
handle their operations. Some of these franchises are unwilling to support certain Pepsi products and
at times produce their own private label products that are in direct competition with Pepsi products.
Secondly the franchisees are not willing to make capital expenditures to keep up with Coca-Cola who
fact franchisees are not willing to by expensive fountain equipment mainly because the profit margin
OPPORTUNITY
Per caps in India is 8 oz. vis a vis 868 oz. in USA : - The consumption of Pepsi in India is still
regarded as luxury. An orthodox Indian would still prefer a cup of tea or coffee to a bottle of Pepsi.
So in the event Pepsi can manage to change their mindsets it would tap a huge untapped customer
base.
Cutting costs: - since there is tremendous scope for increasing the sales volume, this also signifies
potential to reduce costs per bottle and make the product more affordable.
Seasonality: - Pepsi is perceived to be a summer drink and max sales happens in summer months.
During winters an average Indian would still prefer a cup of hot tea to Pepsi.
THREATS
Controversies:- Demonstrations across India were organized by the Research Foundation for Science,
Technology and Ecology (RFSTE). Activists wanted the firms to leave India because they said their
plants depleted ground water the soft drinks giant strenuously denied. Also, the pesticide controversy
Low brand loyalty: - If a consumer walks into a shop and he is offered a coke instead of a Pepsi he
would in all likelihood accept it. This basically means that the company needs to be present
everywhere every time and that too chilled otherwise it will result in lost sale
Low cost and large number of substitutes:-Traditional Indian families would still prefer a glass of lassi
or nimbu pani in summers and a cup of tea or coffee in winters as compared to PEPSI
Risk of losing market share:- Coke is a very strong opponent and gives immense competition to the
Pepsi so there is a constant threat of loosing market share since both the products are very similar and
ANSOFF MATRIX
Below is the Ansoff Matrix which helps us to analyse product-market expansion. PepsiCo India is basically
Product Product
name
– No Change in
Potential
name
– Change in
Potential
On her second visit to India since she assumed the president and CFO's job in the PepsiCo three years back,
Indra Nooyi announced her India strategy on Tuesday that will involve an investments of $300 million to
$500 million over the next 3 years to 5 years. The strategy also includes introduction of newer products in
the country. About 60 percent of Pepsi's fresh investment would be spent on beverage business to expand the
Pepsi in India owns most of its bottling plants – COBOs. Pepsi has about 15 COBOs and plans to expand
further. Pepsi has over the years invested about 600 crores and plans new investments of another 400 crores.
That is the scale of operations in the cola industry, making it very difficult for any new players to enter the
market. Another factor that makes entry difficult is the presence of Coca Cola. The two cola giants among
themselves control most of the market, leaving no room for anyone else.
The gestation period, due to the huge initial investments, is pretty long. Pepsi, which started operations in
There are around 100 franchise owned bottling operations. Bargaining Power of Buyers:
Buyers by and large do not have much power in the cola market. The number of buyers is too large for them
to exert any influence or control over pricing or any other decisions. Even though there are very low
The presence of a large competitor, however keeps the price level in check.
Rivalry:
The rivalry between coke and Pepsi is too well documented. It has stretched from the start of the latter
company till date. It has been witnessed in every continent, country every market and yes the courts. There
are a number of factors other than the obvious one – similar product. These are enlisted below
High fixed costs – this forces the two companies to produce near capacity. This high level of
Perishable product – the companies need to sell their high quantities of produce rather quickly.
Low switching costs – the switching cost for a customer is pretty low, since substitutes are similarly
priced.
Low product differentiation – other than a select few loyal customers, most customers do not find any
Threat to substitutes:
Pepsi cola as a product has a number of substitutes and is under constant threat of losing its market share.
The low product differentiation between its biggest competitor does not help. Another factor is the pricing
which is the pretty much the same for most of its substitutes. There are other threats from outside the
industry too. The age-old nimbu paani and lassi will always pose a threat to any manufactured beverage.
Even if these are not sold in the market place on as large a scale, these are substitutes prepared in most
SEGMENTATION
Geographic
The region of interest of Pepsi Co. India is the whole of India with special focus on “Generation Next”
Demographic
Age – Anybody of age between 12 – 29 yrs.
Income – Anybody with Rs 9 in their pocket
Occupation – Basically students and other youngsters
Social Class – Middle class, Upper middle, Lower Upper and Upper uppers.
Psychographic
Personality – It is perceived to be a modern “generation next” drink and one associates this drink with
youngsters.
Behavioral
Benefits – Style, Price ( economical), quenches thirst
User status – Regular drinkers of soft drinks
Buyer – Anybody who has Rs 9 in his pocket but basically youngsters
Age wise consumption pattern
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
<20 yrs 20 - 35 35 - 50 >50 yrs
yrs yrs
TARGETING
Pepsi is worldwide associated with the urban youth. , Pepsi prefers to segment itself as the beverage choice
of the “ New Generation”, Generation Next, or just as the “Pepsi Generation”. These terms adopted in
Pepsi’s advertising campaigns are referring to the markets that marketers refer to as Generation X. The
Generation X consumer is profiled to be between the ages of 18 to 29. They have high expectations in life
and are very mobile and active. They adopt a lifestyle of living for today and not worrying about long term
goals. Thus Pepsi’s main emphasis is on this segment They also have a focus on the 12 to 18 year old
market. Pepsi believes if they can get this market to adopt their product then they could establish a loyal
POSITIONING
Pepsi has a competitive advantage over Coke because of the image it portrays. Pepsi promotes itself as the
choice of the “New Generation”. Pepsi gets this advantage by implementing such large marketing projects
like “Project Globe”. This marketing plan, which Pepsi spent 637 million dollars over five years, is to
introduce the new rich deep blue coloring of its packaging. The rich deep blue coloring represents eternal
Pepsi has always spoken to the youth consistently, single mindedly and innovatively, and that is a position
that they have never vacatedSlogans like ‘Yeh dil maange more’, ‘Yehi hai right choice baby’, ‘Yeh pyaas
hai badi’ or now ‘Oye Bubbly’, are made with the intent to attract the youth .The idea is to look for catchy
phrases that the youth would catch on to and then make it part of their lives. Pepsi has had so many lines that
PRODUCT:
WIDTH:
1. Soft Drinks
2. Juices ( Tropicana)
3. Mineral Water
LENGTH:
7 Up Mountain Dew
DEPTH:
We will focus on the soft drink section here. The Pepsi cola comes in various sizes ranging from 300ml, 500
CONSISTENCY:
The different products in the soft drink section are all closely related. They share the same distribution
channel and are supplied in the same manner. They also have a similar production process and the end users
Pepsi cola has a light, crisp and refreshing taste. It is the perfect drink for the modern “Generation Next”
people. The product comes in 300ml glass bottles,500 ml pet bottles and in 2 liters. The product targets the
upwardly mobile with its trendy design and is a premium product from the house of Pepsi. It has a shelf life
of 6 months.
PRICE:
Pepsi’s pricing strategy is largely formulated by keeping its rivals, Coca-Cola, pricing strategy in mind. The
reverse is also true. Both the products are not differentiable and are near perfect substitutes. Another
important factor here is that the sales are volume driven; hence price needs to be kept at an appropriate level.
1. 300 ml is for Rs 9.
2. 500 ml is for Rs 18
3. 2 litre is for Rs 43
PROMOTION:
The soft drinks market in the country relies heavily on promotion to sell its products. The presence of close
competition makes it necessary for both Pepsi and Coca-Cola to hard sell their products. The leading
products offered by both the companies are very similar. The companies try aggressively to build loyalties
for their respective brands by playing on emotions and aspirations of its consumers. They have roped in
cricket players and film stars to attract and create interest in their products. Pepsi especially has been
advertising using a number of cricketers to associate Pepsi Cola with their success.
A Pepsi spokesperson says promotions have worked very well for the company and have helped reinforce
The `Pepsi Cool Maal’ scheme in June-July 1998 targeted at school children met with a phenomenal
response because the premia comprised items that school kids needed and ``yet had a lot of attitude''. The
previous year, the company ran a `Pepsi Stuff' promotion that offered young people a range of offers, both
advertisements aimed at the youth of the country. Early on, Pepsi identified three broad platforms cricket,
movies and music. It has roped in the biggest stars from the film industry and the cricketing fraternity.
People endorsing Pepsi include bollywood superstars Amitabh Bacchan & Shah Rukh Khan with a host of
other actors. Fardeen Khan, Saif Ali Khan, Priety Zinta, Kareena Kapoor among the more popular ones.
It has roped in most of the members of the national cricket team. From Superstar Sachin Tendulkar to Rahul
Dravid, Sorav Ganguly, Yuvraj Singh, Mohammed Kaif etc. Pepsi started hiring cricket stars very early and
set a trend in the market. It also brought international music stars like Michael Jackson, Ricky Martin, Deep
Pepsi began advertising early with its very effective ‘A-Ha’ campaign. A-Ha created a new idiom. The tag
line which was built into a song brought instant attention the product. Having Remo Fernades sing “yehi hai
right choice baby…a-ha” caught the attention of the youth. Then came Akshay Kumar with the “I wanna be
mast” campaign. Pepsi chose its ambassadors in a manner which ensured curiosity and then lasting interest
in the youth of the country. Pepsi has over the years come up with catchy slogans like Generation Next, Yeh
Pepsi also associates itself with cricket which is by far the most popular activity, sport, mode of
entertainment in the country. It even launched a new brand by the name of ‘Pepsi Blue” during the last
cricket world cup to cash on the fact that the color of the players’ uniform is blue.. In an earlier episode of
the same event where Pepsi had lost out to rival Coca-Cola in gaining the official sponsorship, Pepsi came
out with an aggressive and creative campaign, where it positioned itself as the “unofficial drink” as opposed
to coke’s strategy. It signed up a number of national as well as international stars, mouthing the tag line
“nothing official about it”. The company has also time and again sponsored a number of cricket
tournaments. It recently came up with the ‘Toss ka Boss’ contest which saw fans join the two captains on the
Pepsi also came out with a series of ads poking fun at rival Coke and its brand ambassadors. This was done
with a fair degree of success as it had everybody from the road side vendor to the BBC correspondents talk
about it. Another recent campaign which created controversy was the ‘OYE BUBBLY’ campaign. It used a
voice over which bore similarity to the voice of Coke’s brand ambassador Virender Sehwag. Pepsi has
created quite a stir with the ‘OYE BUBBLY’ campaign. It shot a music video with Amitabh Bacchan, Sachin
Tendulkar and other players from the cricket team. It released an audio cassette and CD with the song on it.
This campaign in particular has been very successful thanks to the catchy tune and ads featuring Shah Rukh
Khan.
Internet – Pepsi signed up with Yahoo! India and launched a Pepsi zone on yahoo -
http://www.pepsizone.yahoo.co.in. The zone was aimed at the younger lot of the net surfers. A number of
features like contests, chat rooms, games, download etc. attracted net users
PLACE:
SUPER
MARKETS
HOSPITALS
EATERIES
ROAD
SIDE
SHOPS HOTEL
S
PLACE
MALLS
OFFICES
MOVIE
HALLS EUCATIONAL
INSTTUTES
MANUFACTURER
DISTRIBUTOR
RETAILER
CONSUMER
The Company does its selling by using company owned distributors or franchisee owned distributors.
Worldwide Pepsi relies on franchisee but in India it uses both company owned and franchise owned
operations.
2. Franchise owned
FRANCHISEE OWNED:- This is like outsourcing wherein the company out sources its distributing
related work to another party. Company has less control owner the distributor. All the investments like
vehicles, Employees salaries etc are made by the distributor who in return gets a margin ( around 18-
20%).Advantages of using this scheme is that the fixed investments and other distribution related expenses
of the company are less. The disadvantages are that the company has lesser control over the distribution
COMPANY OWNED:- Here the company owns all the vehicles, the employees are on company roles. The
advantages of suh a process are that the company has direct control over the entire distribution process, it
also gives the company higher flexibility. The disadvantages of such a process are that it involves huge
Convenience Stores
Restaurants
Grocers
Entertainment Centers
Eateries
Educational Institutions
Hotels
different! Both have been selling products to quench thirst for over a hundred years and both are now global
brands. Their products moved through the world’s most pervasive networks.
Distribution: Pepsi has taken the more capital intensive route of owning and running its own bottling
factories alongside those of its franchisees whereas Coke operates only through FOBOs (Franchise Owned
Bottling Operations). Pepsi in India has a more organized streamlined channel of distribution whereas Coca
Cola is unorganized in its distribution channel. Pepsi has over a hundred distributors (both company owned
and franchise owned) in Delhi alone whereas Coke has much fewer distributors and relies more heavily on
Brand Synchronisation: Despite being a global brand, Pepsi has built its success on meeting the Indian
consumers’ needs. It has synchronized the brand with localized events and traditions. For example, in Delhi,
it linked its brand with Holi, offering sachets of colour with Pepsi Cola. In Chennai, it offered free bottles
Whereas Coke, instead of creating a bond with its customers through small events, it chose to associate itself
with national and international mega events like the Cricket World Cup, 1996 and the Olympics, 1996.
Diversification: PepsiCo has increasingly diversified into snacks and restaurants while Coca Cola has
focused only on soft drinks. PepsiCo snack operation is in Frito-Lay and its restaurant business includes
Pizza Hut, Taco Bell and KFC. All of Coke’s profits come from beverages whereas PepsiCo depends on
CONCLUSION
After completion of the project and the analysis of the study I came to conclude that after launching
the promotion there was drastic percentage jump in sales initially but gradually the percentage jump
After doing analysis of Pepsi I came to conclude that people are very much aware about the
promotions especially the kids and people prefer more of Pepsi and Pepsi is very popular in India.
Thus I conclude that the industries have pampered consumers by giving discounts and free bies and
hence consumers now a days don't buy a product until and unless they are given some discounts. So
Critics argue that promotions simply prepone the purchase and don't add any incremental value to it.
The sales may pick up during the offer, but there is a loss of sale in the following month, which
means the people who buy the goods in July simply preponed their purchase due to the offer". Also,
over promoted products often leave customers asking for more. Thus promotions have actually
spoilt the habits of consumers. Thus, promotion is a very attractive means to keep the consumers
glued to its product but then the industry shouldn't over do it. The effect of promotions is for a shot
period of time.
QUALITY
The first reason is of quality, obviously in this competitive age and an intelligent consumer in front
PRICE
Why doing analysis 15% consumers complained about the price but from the general tendency, it
was seen that when a consumer felt thirsty and was in a company of friends, price took a back seat
SYSTEM
The distribution system of the company is very efficient. In fact every day the trips are made why
the mini trucks, three wheelers caring crates are replaced at the retail outlets according to the
demand.
LOCAL ADVERTISEMENT
The company has created brand awareness among the consumer through constant advertising. The
retail outlets in the various part of the city display various advertising themes, bill-boards are
painted with eyes catching advertisements, moreover, the mini trucks caring the crates of soft drink
are beautifully painted with various brands and a part from the local news paper carry the
COMPLAINTS; the company has established a system that keeps track of consumer complaints. It
has well set-up network which contacts retailers, consumers, records and their views about the
RECOMMENDATIONS
1.PepsiCo should Promote their all products like Alvio, Gatorade and
Quaker Oats
2.PepsiCo should promote their product in Rural area also as Coca-cola is doing.
3.PepsiCo should expand the Brand Image of Pepsi (People are only correlating it with youth-
Youngistan)
4.As Coca- Cola shows its logo at the end of every advertisement of its each product/Brands, so Pepsi should
also show its logo in its each Brands advertisement
5.PepsiCo also should go equally to other medium of advertisement like pepper, hording and internet.
9.PepsiCo mostly Brand ambassador came from bollywood so they should focus on Sporting celebrity like
from cricket, football and hockey
10. People are not that much aware about some products of PepsiCo so they should focus on it.
11. The regular user of Pepsi is very low. So Pepsi have to convert those customer which are aware about
Pepsi but not using it regularly, so try to make them brand loyal
12. Buying priority of most customers is refreshment so they should try to convert them in brand preference.
14. They should show Quality and Trust base in their advertisement.
15. PepsiCo should focus on their brand ambassador they are changing it continues so they should take care
of it
SUGGESTIONS
Company should emphasis on selling per bottles for 200ml & 300ml at a lower difference price;
Consumer preference change according to availability, therefore the company should provide
Company should take care of cleanliness of the bottles rusted crown and maintain the quality of
Company should get the schemes printed on the labels of the bottles/products as well as on the
free items provided with soft drink so that consumer gets aware about the schemes and not
Company should inform each and every outlet about the schemes before time or on time and
check them. Weather they are providing them to consumer in the proper manner.
Company should conduct survey quarterly to see weather consumers are satisfied with the
Schemes have large impact on consumer preference therefore a company should launch different
Company should encourage to the consumers to purchase more and softer drinks so as to develop
A&M
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