2. CASE STUDY OVERVIEW
Pepsi Co. has launched ‘Ruffles’ chips and has
decided to use same distribution system for both
soft drinks and chips.
Both products are fragile and breakable,with
different distribution characteristics.
The chips were crushed along with the sturdier
bottles during transit.
Pepsi drops this arrangement and adopts an
independent distribution system for ‘Ruffles’
3. REASONS FOR PRODUCT FAILURE
DIFFERENT DISTRIBUTION
CHARACTERISTICS OF BOTH PRODUCTS
BOTH PRODUCTS NEEDED SEPARATE
DISTRBUTION SYSTEMS
BOTH PRODUCTS WERE DAMAGED DURING
TRANSIT
4. IS ‘RUFFLES’ A NEW BUSINESS LINE OR IS IT
CLOSE TO EXISTING BUSINESS OF PEPSI
Pepsi’s existing business line is mostly the
manufacturing of soft drink
‘Ruffles’ is a new business line –a new
product from Pepsi
5. CAN THE FIRM HANDLE NEW
BUSINESS LINE?
THIS CAN BE DONE BY FACILITATING NEW
DISTRIBUTION SYSTEMS FOR BOTH
PRODUCTS
6. IS ‘RUFFLES’ RADICALLY NEW OR SIMILAR
TO EXISTING PRODUCTS?
Ruffles is similar to existing products such as
Lays,Parle Full Toss,Uncle Chips etc
For Pepsi,’Ruffles’ is new in terms of
manufacturing and distribution
7. HOW LONG WILL ‘RUFFLES’ TAKE TO
GET ESTABLISHED?
‘Ruffles’ may take an approximate of 1-2 years to
establish.
Can be done through attractive offers,quality,fair
price
