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C PEPSI & ITS BEVERAGE SEGMENT IN
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SUBMITTED TO Prof A.N.BHATTACHARYA
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i SUBMITTED BY:-
n 1.V.SATYA DEEPAK
k 2.DEEPALI SRIVASTAVA
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3.AGAM GUPTA
o 4.ANKUR PANDEY
n 5.MOHIT KAPOOR
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TABLE OF CONTENTS
1. Objectives
2. Introduction
3. Pepsi in Indian scenario
4. Pepsi & its segments(food & beverage industry)
5. STP(segmentation,targeting & positioning)
6. Marketing mix
7. Conclusion
ACKNOWLEDGEMENTS
We would like to express our sincere gratitude to PROF. A.N
BHATTACHARYA, IILM,Greater Noida for being an excellent
guide.
We are also indebted to our group members and other staff members
of IILM who have supported us in completion of this project.
Lastly, we thank all those whom we may have inadvertently
forgotten to mention.
OBJECTIVES
● To study the Segmentation, Targeting and Positioning strategies of the
Pepsico.
● To study the Marketing Mix strategies of the Pepsico
● To analyze and identify the problem areas in the above mentioned
strategies.
● To give suggestions to overcome these problems.
INTODUCTION
PepsiCo established its business operations in 1989.It aims to serve the long
term dynamic needs of consumers in India.
PepsiCo is a world leader in convenient snacks, foods and beverages,
with revenues of more than $39 billion and over 185,000 employees.
PepsiCo is a world leader in convenient snacks, foods and beverages, with
revenues of more than $39 billion and over 185,000 employees.The company
consists of PepsiCo Americas Foods (PAF), PepsiCo Americas Beverages
(PAB) and PepsiCo International (PI).
PAF includes Frito-Lay North America, Quaker Foods North America and
all Latin America food and snack businesses, including Sabritas and Gamesa
businesses in Mexico. PAB includes PepsiCo Beverages North America and
all Latin American beverage businesses. PI includes all PepsiCo businesses
in the United Kingdom, Europe, Asia, Middle East and Africa. PepsiCo
brands are available in nearly 200 countries and generate sales at the retail
level of more than $98 billion.
Some of PepsiCo's brand names are more than 100-years-old, but the
corporation is relatively young. PepsiCo was founded in 1965 through the
merger of Pepsi-Cola and Frito-Lay. Tropicana was acquired in 1998 and
PepsiCo merged with The Quaker Oats Company, including Gatorade, in
2001.
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.
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.
PEPSI IN INDIAN SCENARIO
Since the entry of Pepsi-Cola to India in 1989, the soft drink industry has
under gone a radical change. When Pepsi-Cola entered, Parle was the leader
with the Thums-up being its flagship brand. Other products offering by Parle
included Limca & Goldspot, another upcoming player in the market was, the
erstwhile bottler of Coca-Cola, “pure drinks”. Its offering includes Campa-
Cola, Campa-Lemon & Campa-Orange.
With the re-entry of Coca-Cola in the Indian market, Pepsi-Cola
had to go in for more aggressive marketing to sustain its market share. The
chronology of the initial phase of the Cola wars in India was:
• 1977: Parle launched Thums-up and pure drinks launched Coca-Cola.
• 1998: In September, final approval for the Pepsi Foods Ltd. Project
granted by the “Cabinet Committee” on economic affairs of the
“Rajeev Gandhi Govt.”
• 1990: In March, “Pepsi-Cola and 7-up” launched markets in north
India.
• 1990: In May, The government cleared the Pepsi-Cola project again
but with a change in brand name to “Lehar Pepsi”, simultaneously it
rejects the Coca-Cola application “Citra” from the Parle, stable hited
the market.
• 1991: Pepsi-Cola extended its soft drinks business and reached at
national scale. Pepsi-Cola launched its product in Delhi and Bombay.
• 1992: In January, Brito foods application is cleared by the FIPB. Pepsi-
Cola and Parle start initial negotiation for a strategic alliance but took
break off after a while.
• 1993: Pepsi-Cola launched “Slice and Teem” captured about 25-30%
of the soft drink market in about 2 years.
• 1994: Pepsi bought “Dukes & Sones”.
• 1995: Pepsi-Cola lunched cans, having capacity of 330ml in various
flavors
• 1996: Pepsi-Cola domestic and international operations combined into
a Pepsi-Cola Company. International and domestic operations
combined into one business unit called “Frito-lay Company”.
• 1997: Pepsi-Cola brought “Mirinda Orange” opposite to “Fanta”.
• 1998: Pepsi-Cola launched “Mirinda Lemon” opposite to “Limca”.
• 1999: Pepsi-Cola launched “Diet Pepsi” in can and 1.5 Lit. “PET”
bottle for health conscious people.
• 2001: Pepsi-Cola launched Slice in “Tetra” Pack.
• 2003: Pepsi-Cola launched “Pepsi Blue” to get the favour of world
cup season.
• 2005: Pepsi-Cola launched Mirinda in “Straw Berry” flavour to get the
favour of movie Batman.
• 2005: Pepsi-Cola launched 7-up as “7-up ice”.
• Pepsi-Cola launched “Mountain Dew” to be more competitive with
Coca-Cola
• 2009: Bangalore, March 9 PepsiCo India has launched its packaged
nimbu paani ‘Nimbooz by 7Up.
• 2010: Introduction of Pepsi max
PRODUCT LINES OF PEPSICO
FOOD
PepsiCo's foods division Frito-Lay is the leader in the branded salty snack
market and all it's products are free of trans-fat and MSG. It manufactures
Lay s Potato Chips, Cheetos extruded snacks, Uncle Chips and traditional
snacks under the Kurkure and Lehar brands. The companys high fibre
breakfast cereal, Quaker Oats and low fat and roasted snack options like
Aliva enhance the healthful choices available to consumers.
BEVERAGE
PepsiCo India's expansive portfolio includes iconic refreshment beverages
such as Pepsi, 7UP, Nimbooz, Mirinda, Slice and Mountain Dew; in addition
to low calorie options such as Diet Pepsi, hydrating and nutritional beverages
such as Aquafina drinking water, isotonic sports drinks - Gatorade, Tropicana
100%, Tropicana Twister fruit juices
BEVERAGE INDUSTRY
Beverage industry is one of the fast growing industries in India .it can be
divided into two sections i.e. carbonated and non-carbonated. the carbonated
drinks that can be further classified into cola, lemon orange, mango and apple
segments.
Marketing includes all the activities like promotion,
distribution, advertising etc. To fulfill all the segments of consumers.
Marketing is also to convert social needs into profitable opportunities.
Now we will talk about the segmentation , targeting and positioning of the
beverage sector. To explain STP strategies we have focused on the soft drink
segment of the pepsi.
SEGMENTATION
The market has being segmented by pepsi on the following grounds. Pepsi
Co have adopted different marketing strategy for rural and urban areas.
A:-DEMOGRAPHIC SEGMENTATION
Age
India is considered to be a young country i.e. average age of Indian
population is less 38years. Thus targeting young generation can be a
beneficial marketing strategy for soft drink companies. In fact this is the case,
all the major brands like Pepsi, coca cola, and thumps up, mainly target
younger generation in India. In Europe, as average population is older than
Asian countries, Coca cola targeted the older generation of the population.
Similarly in USA, Pepsi targeted the generation X (younger generation) as
they comprises majority of the population and they positioned Pepsi in the
mind of youth that Pepsi is for the youth. Pepsi attempts to capture the youth
of today by focusing on their personality, lifestyle and attitude of youth
through advertisement
Geographic region
As mentioned earlier pepsico has segmented the market on the basis of rural
and urban area.As the climate of the country is hot and dry it aims at the
geographical areas where people actually require something to quench their
thirst. That is why pepsi came with chota pepsi in rural areas to tap the
market where people wants cold drink which is good as well as cost effective.
B:- Behavioral
In occasions like parties, birthdays, sports and regular occasions the soft
drinks are preferred at every occasion. It is liked by each and every member
of the family whether a child or an adult or an teenager. Even if there is no
occasion due to environmental factors people do purchase pepsi.
C:- GENDER
Gender based segmentation is very important. As taste of male and female is
different. Let’s take the example of coca cola, thumps up is promoted as
masculine soft drinks while coca cola and Fanta are having light taste and
mainly targeted for loving birds, ladies, and children. Same example is
available in Pepsi, mirinda orange flavor is popular among ladies, girls, and
children.
D:- TASTE AND PREFERENCES
According to the taste and preference of the customers pepsi came up with
the product like diet pepsi.It came up with diet pepsi in order to cater to the
needs of those people who are very health conscious.
TARGETING
Pepsi targets both the rural as well as the urban segments. For urban
segments the targeting strategy is trendy cans,fridge packs which is mostly
trendy and liked by the youngsters. The rural market is targeted with entirely
different strategy altogether. They keep price as an important decision
making variable.
POSITIONING
Positioning has come to mean the process by which marketers try to create an
image or identity in the minds of their target market for its product or brand
or organization.
Pepsi prefers to position 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. Though Pepsi’s
main emphasis is on this segment but they also have a focus on the 12 to 18
year old market. The rich deep blue coloring represents eternal youthfulness
and openness. Marketing plans like “Yeh Dil Maange More”, “Got Another
Pepsi”, “Ye Pyass Hai Badi” and now its “Yeh Hai Youngistaan Meri
Jaan” have made Pepsi one of the coolest brands recognized among teens in
the top five and the only beverage product in this category
MARKETING MIX
Product
A business needs to consider the products that it produces and the stage of the
product life cycle that a product is at. Marketing strategies will vary
according to the type of product and its stage in the life cycle.
In case of Pepsi, in the rural markets, the 300ml bottle and now days the new
small or commonly known as the “chota pepsi” is very much popular. The
Pepsi Co. is even thinking of introducing their new Pepsi-Aha, but presently
they are concentrating more on the normal pepsi as the rural market is a niche
market. Pepsi is even successful in introducing the big 1-1.5 liter PET bottles
in the rural markets. These big bottles are very popular during big festivals
and marriages.
We see that pepsi has differentiated the product category on the basis of diet
and regular pepsi as well depending on the varied needs of the customers.
PRICE
As far as the pricing goes, the 300 ml Pepsi bottle is priced at Rs. 10 now it is
12. But the company soon realized that this pricing worked in the urban
markets but not in the rural markets as in the rural markets, Pepsi is not a
necessity but a luxury. They found out that people in the rural markets bought
cold drinks only if there was some occasion. A price point of Rs 10 for a 300
ml bottle has proved a major deterrent: it has kept away new consumers in
the urban and semi-urban pockets, and it has blanked out the far larger rural
markets where annual per capita consumption is less than a bottle. So the Rs.
10 bottle was not that successful. But their sales increased after introducing
the “chota Pepsi”. This 200ml Pepsi was reasonably priced between Rs.5-
Rs.7. This was a major weapon for the expansion of the rural market.But
there are other areas of concern — principally that the 200 ml offering should
not cannibalize 300 ml sales. In that case, there will be no market growth.
That is why pricing could be crucial. Pepsi, for instance, has reckoned that
giving consumers 33 per cent (100 ml) less cola at 50 per cent of the price
(Rs 5) is not a sustainable option and can, at best, be used as an introductory
offer.300 ml bottles have almost vanished from the market now.Hats Off to
the pricing strategy of the Cola Companies who have been successfully able
to sell 66% of the product at the cost of 100% almost in a phased manner
and making consumer habitual and unaware of the increased price.
PLACE
This generally refers to the physical locations of product sales as well as the
methods of distribution. However, it is also considered to be the "place" or
"position" in the market of the product; refer to information below.
Businesses need to make many decisions related to "place": access, parking,
competition, physical location etc. In case of the distribution network, there is
no involvement of wholesalers in the distribution of products. It is more like
an agent network. The companies have divided the country into various
regions and established a franchisee in each region. The franchisees have
their own bottling plants and manage all the day-to-day operations. However,
of late, the soft drinks companies have started setting up company owned
bottling units have been acquiring some of its franchise bottles. For Pepsi, the
rural market is a chosen thrust this year. It has targeted to reach 20 to 28 per
cent of the rural population in the first year of this operation. In the first
stage, the corporation is planning a massive roll out in villages with
populations of 5000. To do this effectively, Pepsi is focusing on establishing a
cold chain.
The company has developed special freezers that allow its products to stay
chilled despite power cuts of three to four hours. It will also use traditional
iceboxes to sell its product in rural India. For the rural markets, Pepsi is
looking at the wholesale route since the logistics of direct distribution are too
huge to handle in the interiors.
PROMOTION
This refers to the promotion of the product to the target market. This is
achieved through a combination of: advertising: use of electronic and print
media. The "reach" (how many people will see the advert), frequency (how
many times will I advertise the product?) and impact of the advertising must
also be evaluated.
The popularity of the product has also increased due to their advertisements
or basically famous cricket and bollywood personalities endorsing this
product. For instance the Sachin “Aala re Aala” advertisement where even he
is wearing a mask along with those rural kids. Or you can even take the new
Sachin and Amitabh Bachchan advertisement where both of them say “ Yeh
Dil Maange More!!!!!!!” Sachin has done many advertisements for Pepsi in
the span of 10 years.
Pepsi’s rural market advertisement- Pepsi has unveiled a major campaign in
Andhra Pradesh, roping in top Telugu film star, Pawan Kalyan, even as the
star's elder brother, Chiranjeevi, is into pushing Coca-Cola's Thums Up.
Pawan Kalyan, however, ruled out any rivalry between him and his brother.
Though he will sing Yeh Dil Maange more, his brother will say Yeh Dil
Maange no more. “We have our lives and we have our own choices,” he said
on the possible in-house cola feud.
Pepsi also kicked off a rural campaign, spread over two months. Decorated
Pepsi vans will roll out into market of the State. Every consumer drinking a
Pepsi from these vans will get to play a game and win prizes. These include
Pawan Kalyan memorabilia, T-shirts, autographed posters and calendars.
Explaining the reason for choosing Pawan Kalyan to endorse Pepsi, Mr.
Rohit Ohri, Director HTA, Pepsi's ad agency, said Pepsi and Pawan Kalyan
were going to be an ideal combination. “Both are so youthful, energetic and
fun-loving,” he said. Mr. Vijay Shanker Subramaniam, Vice-President
(Marketing), Pepsi Foods Ltd, said the company was starting an “aggressive
campaign” in Andhra Pradesh. Apart from the van operations, which were
flagged off by Pawan Kalyan, other campaigns have been lined up
throughout the year.
Later, Pawan Kalyan presented a cheque for Rs 5 lakh to Mr. Mehmood Ali, a
mechanic with the Andhra Pradesh State Road Transport Corporation for
winning Pepsi's Mera number ayega campaign.
1992 Gotta Have It
1993 Be Young, Have Fun, Drink Pepsi
1995 Nothing Else is a Pepsi
1997 Generation Next
1998 Same Great Taste
1999 The Joy of Cola
The Joy of Cola
1999
2003
2004
Pepsi. It's the Cola
2005
2006
Analyze and identify the problem areas in the above
mentioned strategies
1. lack of efficiency in distribution network in some product lines. for eg.
My can and Aliva.
2. Lack of emphasis on the brand value in advertisements. For eg. Aliva
and kurkure.
3. Lack of efficiency in product market survey before the launch of
products. For eg pepsi blue and kurkure desi beats.
4. The target market is youth and the taste is not in relation with the taste
of target market(pepsi is too sweet)
ALTERNATE SOLUTIONS
1. as the product is mass product therefore the efficient distribution system
should be there. Pepsi does not have apt number of distributors in its supply
chain. Due to this reason we don't see my can in all the stores across the
stores.
2. The advertisements should have the logo of Pepsi so as to get proper
attention of the customers & encouraging them to purchase it.
3. They should have an efficient department for conducting the surveys so
that they are able to succeed at the customers front.
4. There can be a different product launch that can be a good competition
to its rival products in this market
CONCLUSION
The project gives the basic insight of the
beverage segment of the pepsi co.where in the group has tried to identify the
conceps taught in the class to the real life senario.we have tried to cover the
entire sector by describing the following concepts:-
1. The 4 P's
2. STP concept
3. Demographic & Psycographic factors
4. Marketing mix
In this project we have tried to identify the flaws in the
beverage industry of the company and the group has tried to bring out some
worthy solutions to the problems arising in this sector.
As we can see from the above chart pepsi was the top fizzing brands in year
2005.It was having the maximum market share of 35% which was much
higher than the brand having the second highest market share. To increase its
share in current scenario pepsico has launched pepsi MAX. Pepsi is still the
market leader in current era..
BIBLIOGRAPHY
1. http://bimtech-retail.com/blog/
2. www.wikipedia.com
3. www.scribd.com
4. www.pepsico.com
5. www.pepsiindia.co.in
6. www.beveragedigest.com
