STRENTH:

Knowledge. competitors are retailers, pushing boxes. We know systems, networks, connectivity,
programming, all the VARs, and data management.

Relationship selling. We get to know our customers, one by one. Our direct sales force
maintains a relationship.

History. They have been in our town forever. We have loyalty of customers and vendors. We are
local.

WEAKNESSES:

Costs. The chain stores have better economics. Their per-unit costs of selling are quite low. They
aren't offering what we offer in terms of knowledgeable selling, but their cost per square foot and
per dollar of sales are much lower.

Price and volume. The major stores pushing boxes can afford to sell for less. Their component
costs are less and they have volume buying with the main vendors.

Brand power. Take one look at their full page advertising, in color, in the Sunday paper. We
can't match that. We don't have the national name that flows into national advertising.

OPPORTUNITIES:

Local area networks. LANs are becoming commonplace in small business, and even in home
offices. Businesses today assume LANs as part of normal office work. This is an opportunity for
us because LANs are much more knowledge and service intensive than the standard off-the-shelf
PC.

The Internet. The increasing opportunities of the Internet offer us another area of strength in
comparison to the box-on-the-shelf major chain stores. Our customers want more help with the
Internet, and we are in a better position to give it to them.

Training. The major stores don't provide training, but as systems become more complicated,
with LAN and Internet usage, training is more in demand. This is particularly true of our main
target markets.

Service. As our target market needs more service, our competitors are less likely than ever to
provide it. Their business model doesn't include service, just selling the boxes.

THREATS:

The computer as appliance. Volume buying and selling of computers as products in boxes,
supposedly not needing support, training, connectivity services, etc. As people think of the
computer in those terms, they think they need our service orientation less.
The larger price-oriented store. When we have huge advertisements of low prices in the
newspaper, our customers think we are not giving them good value.

Slide 1:Youngistan Campaign

Indian Soft Drink Market :Indian Soft Drink Market 85% 15%

About PepsiCo :About PepsiCo PepsiCo is a world leader in convenience foods and beverages.
Its world renowned brands are available in nearly 200 countries and territories. PepsiCo entered
India in 1989 and has grown to become the country’s largest selling food and beverage
companies. PepsiCo India and its partners have invested more than U.S.$700 million since the
company was established in the country in 1989.

PepsiCo’s Profile :PepsiCo’s Profile Revenues in 2007 is more than $39 billion. Share in Indian
carbonated soft drink market is 37 bottling plants in India, of which 16 are company owned and
21 are franchisee owned. PepsiCo’s Frito Lay snack division has 3 state of the art plants. It has
more than 185,000 employees across the world. In India, PepsiCo provides direct employment to
4,000 people and indirect employment to 60,000 people including suppliers and distributors.
CEO : Mr.Sanjeev Chadha. India Headquarters : Gurgaon.

Brand Image of Pepsi :Brand Image of Pepsi Pepsi is a brand that every youngster relates to.
But this definitely doesn’t mean that other age groups are not it’s user’s. Thus Pepsi’s brand
image is it’s hip, cool, lively and refreshing attitude.

Products :Products

Advertising Strategy of Pepsi :Advertising Strategy of Pepsi Pepsi’s target audience are mostly
teens and young adults and their advertising reflects this in every possible way. The company
changes its advertising strategy and image to reflect the target's interests. Pepsi makes sure that
the advertisements reflect to the target audience’s interests and nostalgia.

CONTD… :CONTD… The advertising strategy includes cool, hip promos to attract more of the
target audience. The advertising is mostly creative and has different elements like music and
sports other than bollywood. Pepsi.com also plays an important role in advertising and attracts
target audience by giving access to options like downloads, gaming, music mixing applications
etc..

Slide 9:Some of Pepsi’s successful Campaigns

Slide 10:Yeh Dil maange more

Bubbly Campaign :Bubbly Campaign

Slide 12:Youngistan Campaign “Yeh hai Youngistaan Meri Jaan “

Slide 13:About Youngistan This campaign has two new celebrities Ranbir Kapoor and Deepika
Padukone —who acted in the two most-talked about Hindi films in 2007, to accompany brand
ambassador Shah Rukh Khan. “This time we wanted an all-encompassing theme. ‘Youngistan’
reflects the mood of India’s youth, which is today keen to take the ropes and drive India,” says
Punita Lal, executive director, marketing, PepsiCo.

CONTD… :CONTD… “Youngistan”, hopes to cash in on the buzz surrounding today’s

youngsters. Youngistan is not so much a place and it is a state of mind of today’s youth. “While
the term is new, what it stands for – the GenNext attitude – is not new”.

Segmenting pattern :Segmenting pattern Demographics: The Campaign targets teens and young
adults of metros and phase II cities. Psychographics: The campaign attempts to capture the youth
of today by focusing on their personality,lifestyle and attitude of youth through the advertisement

Targeting Strategy :Targeting Strategy The Youngistaan Campaign uses undifferentiated

targeting strategy to reach out to its target audience. That is it launched youngistaan campaign
for all the target audience in the same way.

Positioning :Positioning The campaign positioning is done on the basis of user approach i.e a
personality based approach where a user’s image or association rubs off on the brand image. The
user could be a celebrity or an ordinary user. For this campaign Pepsi used the three most
popular celebrities of the last year i.e Shahrukh Khan, Ranbir Kapoor, Deepika Padukone

Placement of the Campaign :Placement of the Campaign The campaign was first launched on
T.V during the tri-series matches in February. The campaign is launched with a 360-degree
activation across radio, outdoor, modern trade, Web and wireless platforms. Pepsi has launched a
website for Youngistan inside the Pepsi Cool Zone and is planning to make it a responsive peer
group site where youngsters can visit and make comments on any topic. Pepsi Youngistan is also
sponsoring ‘‘Wassup Youngistan” on MTV, a show where youth can voice their thoughts.

Slide 19: Youngistan T.V advertisement

Advertising Agency for Youngistan :Advertising Agency for Youngistan JWT ( J. Walter
Thompson), ranks as the largest advertising agency brand in the U.S. and as the fourth-largest
full service network in the world. It was the first agency to be associated with anthropology and
the study of consumer behavior.

Competitor’s for Youngistan. :Competitor’s for Youngistan. Competition for Pepsi has always
come from it’s arch rival Coco-Cola. Coke kept up with Pepsi’s Youngistan by launching a
campaign “Jashn Mana le” staring Hrithik Roshan. Sprite, a subsidiary of Coco-Cola company
has also launched an ad campaign called “Hindustan”, mocking the Pepsi’s “Youngistan”
campaign.

Conclusion :Conclusion As it’s earlier campaign’s Pepsi through ‘Youngistan’ campaign aims at
capturing it’s target audience in another cool, funky, attractive way

How important is pricing for a category like snack foods?

Our core portfolio is pretty evenly split between entry-price points (Rs 3 and Rs 5) largely
consumed by lower SEC on-the-go consumers, single serve packs (Rs 10) and large take-home
bags (Rs 20). We are seeing good growth across price points. The consumer is more value-
sensitive and functionality-driven in some parts of the country like the West

kurkure.

Frito- lay,is the leader in the branded salty snack market and all frito-lay products are free of
trans-fat and MSG . it manufactures lays potatoes chips , cheetos extruded snacks .