Marketing Management Project

on Pepsi
Submitted by
Roll 15 Mandar Jha
Roll 18 Vijayendra Katti
Roll 29 Ajit Shenoi
Roll 34 Sunny Sopal
Roll 41 Zubin Mehta


Beverage Industry
Consumers purchase soft drinks primarily for refreshment and to
quench thirst.

Brand awareness plays a crucial role in purchase decisions.

Consumers prefer convenient and economic products.

Main consumers of this market are people in the age group of 30 and
below.

Product differentiation is very low, as all the products taste the same.
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Beverage Industry cont.
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14
94
0 50 100
India
U.S
Annual Per-Capita Consumption
250 ml serving
10
29
61
0 50 100
Others
Pepsi
Coca-Cola
Market Share
Market Share
Source: http://www.businessinsider.com/coca-cola-vs-pepsi-timeline-2013
The Pepsi Story
Invented by Caleb Bradham in 1898 while experimenting
with combinations of spices, juices, and syrups trying to
create a refreshing new drink to serve his customers in New
Bern, North Carolina.

His creation, a unique mixture of kola nut extract, vanilla and
rare oils became so popular that his customers named it
"Brad's Drink." Caleb decided to rename it "Pepsi-Cola,"
The Pepsi Story. Cont.
In 1902, he launched the Pepsi-Cola Company in the back
room of his pharmacy

He also began awarding franchises to bottle Pepsi to
independent investors, whose number grew from just two in
1905, in the cities of Charlotte and Durham, North Carolina,
to 15 the following year, and 40 by 1907. By the end of 1910,
there were Pepsi- Cola franchises in 24 states.

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.

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Mission Statement

Vision Statement
Our 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.

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Product Life Cycle
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Marketing Mix 4 P`s
PRODUCT:
Different from its competitors with a sweeter and flavored cola
taste.
Regional variants such as Pepsi Atom to cater to consumers who
prefer strong cola taste.
For diet conscious people it has Diet Pepsi as a separate product
range.
Different packaging sizes 300,400,500,1000,1500,2000 ml.
Packaging forms - Cans, PET bottles, Glass bottles and fountain
machines.

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PRICE :
Competitive pricing.
Various price range to cater to mass market and niche market


Marketing Mix 4 P`s. Cont.
PLACE:
Strong distribution channel in urban and rural market.
Its transport facilities, channels of distribution, coverage area,
etc. are maintained very securely.

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PROMOTION:
Pepsi advertises its products through mass media.
Many slogans such as change the game, Oh Yes abhi etc.
to connect with the youth.
They also advertise its products through social networks and
media such as Face-book, Twitter, My space etc.
Association with bollywood celebrities and Sports Icons.
Associated with Indian Premier league for five years and has
paid huge sums for the same. This shows how Pepsi is
aggressive in terms of promotion of its products.
Strengths Weaknesses
Branding
Presence in over hundred
countries.
Efficient distribution system.
Good reputation in the market.

Overdependence on US
markets.
Non fulfilment of
commitments on time, made to
shopkeepers.



SWOT Analysis
Marketing Analysis
Opportunities Threats
Tapping rural markets.
Collaboration with various
national sporting events.
Viewing India as a potential
market for growth and
expansion.
International diversification.


Decline in carbonated drinks
share.
Potential Negative Impact of
Government regulations.
Rising market share of fruit
juices and energy drinks.
SWOT Analysis cont.
PESTLE Analysis
Political:
Different set of laws and regulations in different countries/states.
The political scenario also comes into picture when there is some
civil unrest in certain markets over the Pepsi products and safety and
hygiene related to them
Economic:
Economic downturn has resulted in decreasing profits.
This has forced Pepsi into downsizing internally.
Penetration in old and new markets efficiently.

PESTLE Analysis cont.
Social:
Social implications are seen in marketing campaigns .
Pepsi has to keep in line with all regional festivals, events, sports
and activities in order to understand the psyche of their market and
its culture, and how they can cash upon the opportunity

Technological:
Opened R&D centers to make the quality of beverage more
healthier.
Using technology to create products which conform to local
(regional) taste.
Improvement in packaging due to better technological support.


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PESTLE Analysis cont.
Legal:
Constant legal implications in India
i. Ground water depletion case
ii. Contaminated water usage case
iii. Improper Packaging and foreign contaminants case

Environmental:
Use of alternate energy in manufacturing plants. (Wind, Solar, Bio-
fuels etc.)
20% less usage of plastic in packaging.
Smart water usage in all manufacturing plants to save water.

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Ansoff Matrix Analysis
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Market
Penetration
Product
Development
Market
Development
Diversification
N
e
w

New
P
r
e
s
e
n
t

Present
PRODUCT
M
A
R
K
E
T

BCG Matrix Analysis
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Segmentation:
Customer Segmentation - Demographically based on age,
income and family size.
Geographic Segmentation Main market focus is in northern
region of India because of brand preference.
Behavioral Segmentation Segmented towards urban middle
class families.



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Segmentation, targeting & positioning
Targeting:
Targeted towards teenagers and towards young adults (23-30
yrs).
Targeted at Fast-Food chains , restaurants, college/ school
canteens.
Mainly targeted towards urban cities. (Now shifting focus to
rural areas.)
Diet Pepsi targeted specifically for health conscious people.

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Segmentation, targeting & positioning cont.
Segmentation, targeting & positioning cont.
Positioning:
Positioned as a refreshment for the mind and body.
Positioned in India as an International brand with local
appeal.
Positioning through Bollywood celebrities and sports icons.
Identifies itself with various sports events.
Advertisements and promotions during sports broadcasts.

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Porters Five Force Model
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Low Bargaining power of Buyers
Low
Bargaining power of Suppliers
Low Threat of Substitute Products
Medium Threat of new entrants
High
Competitive rivalry
Perceptual Mapping
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High
Prices
Diverse
Products
Low
Prices
Limited
Products
Pepsi
Coca-Cola
Red Bull
Tropicana
Nimbu
Sharbat
PRODUCT ANALYSIS AND MIX FOR PEPSICO
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Width Of the Product Mix
Depth
of
the
Product
Lines
BEVERAGES FOODS
Carbonated Health Mineral
Water
Snack Nutrition
PEPSI
Tropicana Aquafina Lays Potato
chips
Quaker
Oats
7-up Cheetos
Mountain
Dew
Aliva
Interview with Pepsi Management
Pepsi has a strong brand value in spite of declining market share as
compared to Coca-cola.

Despite the flak and severe bad decision accusations, the research shows
that IPL has been a big achievement considering future aspects.

Health drinks sector with mainline brand like Tropicana and Slice,
showing the significant market capture.

Rural market yet to be tapped as price sensitivity is generally high.


Consumer Survey Findings

Youth effect - 58% of age group 16-30, preferring carbonated drinks.

Reason of preference - Refreshment over Thirst or fun.

Advertising effect- Approximately 50% of people agree that
advertising had a great impact over them.

Correlation of Pepsi brand with various aspects- With 21% prefer Fun
as main reason to correlate the brand, 19% say due to easy availability.
While other aspects like Taste, Advertisements, Slogans and
Unpleasant are more or less have same percentage of correlation.
Recommended Strategies
Tapping the rural markets of India.
Focusing on health drinks sector.
Brand diversification of Pepsi products.
Benefit out of Halo effect.
Branding exercise with respect to rival market share by creating new
events.
Improvisation in product development because of demand of stronger
variant like other brands Thumbs up.
Social media and Digital marketing.

References
Kolish ED and Peeler CL. Changing the Landscape of Food & Beverage Advertising:
The Childrens Food & Beverage Advertising Initiative in Action.
Available at: www.bbb.org/us/storage/0/Shared%20Documents/CFBAI%20Report.pdf
Children Now. The Impact of Industry Self-Regulation on the Nutritional Quality of
Food Advertised to Children on Television. 2009. Available at:
www.childrennow.org/uploads/documents/adstudy_2009.pdf
BBBs Childrens Food and Beverage Advertising Initiative: Synopsis of Participants
Nutrition Standards.May 2011. Available at:
www.bbb.org/us/storage/0/Shared%20Documents/Updated%20Nutrition%20Chart%20
May%202011.pdf
PepsiCo. PepsiCo Global Nutritional Criteria for Advertising to Children. 2011.
Available at:
www.pepsico.com/Download/PepsiCo_Global_Nutrition_Criteria_A2K_8_JULY_2010
.pdf.
BBBs Childrens Food & Beverage Advertising Initiative: Fact Sheet on the
Elementary School Advertising Principles. 2009. Available at:
www.bbb.org/us/storage/0/Shared%20Documents/ESFactSheetFinalWord.pdf
Overview: Company History (2007). PepsiCo Corporate Website. Retrieved October
28, 2007 from http://www.pepsico.com/PEP_Company/Overview/index.cfm.
http://www.pepsico.co.in/


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