Marketing Analysis of Pepsi

1. DONE BY
GROUP 5

2. COMPANY OVERVIEW
• Pepsi was introduced in the year 1965 with the merger of
Pepsi-Cola company and Frito-Lay.
• It was originally created and developed in 1893 by Caleb
Bradham and introduced as Brad's Drink, it was renamed
as Pepsi-Cola in 1898, and then shortened to Pepsi in
1961.
• Since then the company has expanded its namesake
product Pepsi to a broader range of food and beverage
brands.
• Pepsi-Cola First created as a refreshing and energizing
tonic, today Pepsi-Cola is one of the world’s most iconic
and recognized consumer brands.
• COMPANY’S MISSION - “CREATE MORE SMILES WITH
EVERY SIP AND EVERY BITE’’.
• COMPANY’S VISION – ‘’ BE THE GLOBAL LEADER IN
CONVENIENT FOODS AND BEVERAGES BY WINNING
WITH PURPOSE’’.

3. SOME OFTHE PEPSICO
PRODUCTS

4. CURRENT
MARKET
SHARE
MARKET SHARE OF ALL BEVERAGES
IN THE INDIAN MARKET FOR 2019
MARKET SHARE OF PEPSICO
AND COCA-COLA W.R.T OTHERS

5. MAJOR COMPETITORS
DIRECT INDIRECT
Coca - Cola Dabur Real Juice
Local carbonated drinks brands Flavoured milk e.g kevin, Amul
Tea/ Coffee
Local juice shops

6. COMPETITIVE ANALYSIS GRID
COMPANY NAME PEPSI COCA-COLA REAL FRUIT JUICE
PARENT COMPANY PEPSICO THE COCA-COLA
COMPANY
DABUR
PRODUCTS
ADVERTISING
BUDGET
BETWEEN 2.3 AND 2.6
BILLION U.S. DOLLARS
ALMOST 5.8 BILLION
U.S DOLLARS
28 MILLION USD
(INDIAN ONLY)
PLACE OF
OPPERATION
ALL ACROSS INDIA ALL ACROSS INDIA ALL ACROSS INDIA

7. ● Main rival of pepsi
● Largest market share worldwide and in india (31.4)
● Tie ups with brands like dominos and mcdonalds
● Very strong distribution network
● Mass level reach at regional level
● Majority of the local shops in rural areas have exclusive Coca-
Cola tie-ups.
● Majority of the carbonated drinks sold belong to Coke.
● Extremely loyal customers
Coca-Cola

8. DABUR REAL JUICE
● Strong Dabur brand name
● Good branding and advertising
● Distribution network is strong
● Associated more with health as compared to Pepsi
● Able to capture more casual drinkers with their healthy
approach and many flavours

9. Strong Brand Image.
Loyal Customer Base.
Global Presence and Strong
Supply chain .
Strong Product Portfolio.
Reliance on Carbonated drinks
Weak Product portfolio for healthy
drinks and beverages
Lack of local exclusive tie-ups as
compared to Coca-Cola.
Increasing demand for healthy
drinks.
Partnerships with fast food
chains.
Reducing consumer need and
demand for carbonated drinks.
Heavy Competition from
Global and Local players.
Weak Product portfolio.

11. SEGMENTATION
Pepsi has segmented its market on the following basis:
Geographic- Pepsi has put little emphasis on segmenting its
market geographically. It operates almost everywhere around the
world.
DEMOGRAPHIC- On the basis of:
1. Age – 15 to 45
2. Gender- Males and Females
3. Income- Average, above average and high earners
4. Occupation- Students, employees and professionals.
BEHAVIORAL- It is done on the following basis-
1. Purchase occasion- Parties and other get together
2. Degree of loyalty-‘Hard core loyals’ and ‘soft core loyals’
3. Benefits sought- Refreshment, quality, taste
4. User status- Regular users
PSYCHOGRAPHIC- Social class- middle- and upper-class people
1. Personality- Cool and youthful
2. Lifestyle- Trendy

12. TARGETING & POSITIONING
TARGETING- Pepsi follows the strategy of ‘niche or
concentrated marketing’ i.e. it targets one or a few
segments of the consumer population.
Customers are mostly teenagers and young adults
POSITIONING- Pepsi positions itself on points of
difference and points of parity.
Point of Difference- Forward thinking attitude.
Point of Parity- Wide selection to fit every lifestyle
of consumer.
It is positioned as a soft drink that tastes good and
has a pleasantly refreshing impact.

14. PRODUCT
It is a carbonated soft drink manufactured by PepsiCo.
Levels of product:
-Core Benefit- To quench thirst and provide refreshment.
-Actual product- Is the soft drink itself.
Product features- provides refreshment through strong
carbonation and strong caffeine.
Branding: PepsiCo classifies its brands into three categories: Fun for
You, Good for You, and Better for You. Pepsi comes under the
‘Fun for You’ category.
Powerful brand with a strong equity
SKU’s: Glass bottles of 200ml,300ml,
PET bottles
Cans of 250ml and 330ml.
Packaging: Packaging includes compliance with food safety regulations,
freshness and quality of the product, environmental
sustainability, affordability, and consumer preferences, including
convenience.
Plans to make packaging 100% recyclable and biodegradable.
Labeling: Labeling on cans and bottles is done in regional Indian languages in an
attempt to attract local consumers.

15. PROMOTION
Advertising is Pepsi’s primary tactic for
marketing communications. For
example, the company is popularly
known for using celebrity endorsers to
promote its products on TV, radio, print
media, and online media. They
launched various campaigns and some
of the popular ones are
• Yehi hai right choice
• Dil maange more
• Oh yes abhi
• Har ghoot mein swag hai

16. SALES PROMOTION
Pepsi occasionally applies sales
promotions, such as package
deals, discounts, gifts and Pop
display.
PUBLIC RELATIONS
Pepsi uses public relations through financial assistance and
sponsorships, such as in sports events. They have also
sponsored various music and dance programs, and this has
helped build a favorable image.

17. PLACEMENT
The Pepsi beverage has been placed across the country in every type of
outlet from small roadside shops to large supermarkets. PepsiCo uses a
global network for distributing its products to consumers. Venues for
distribution and sale are considered in this element of the marketing
mix. PepsiCo’s places for distribution are as follows:
1. Retailers
2. Online merchandisers
Most PepsiCo products are available at retailers, such as supermarkets,
grocery stores, and convenience stores. However, customers can access
PepsiCo-licensed merchandise like tumblers and t-shirts through
retailers and their websites. Based on this element of the marketing mix,
PepsiCo’s places for distributing its products are mostly non-online
retailers.

18. price
•
• They have various sizes of bottles offered at various rates. This are priced
according to the quantity of the drinks supplied.
• They use hybrid value pricing strategy
• The partnership with Wal-Mart impacts on its pricing strategies because of
Wal-Mart urge to maintain low prices. So the company works hard on
maintaining current prices by reducing their operating costs and adapting its
processes.
PRICING
Pricing strategy is mainly aimed at driving customer loyalty by keeping the
products average priced and accessible for a larger customer segment without
giving an impression of low-quality product

19. Quantity Price (Rs)
150 ml 20
250 ml 25
600 ml 35
2250 ml 90

20. RECOMMENDATIONS
• Should increase reach to regional level
• More offers to the retailors to convince them to sell Pepsi
exclusively.
• New products in the category of health like ( new diet Pepsi)
• Should increase visibility in the market like coca cola.
• Tie-ups with fast food chains. For example Coca-Colas tie-
up with Domino's

21. GATHERINGS FROM RETAILER VISITS
 Most of the local retailers have exclusive tie-up with Coca-Cola to distribute their products. We
noticed that 4 out of 6 local shops had Coca-Cola as the exclusive product.
 The shops that do have Pepsi, Stockpile weekly in the following way
 24 bottles of 600ml in one cart (10-15 carts kept for the week)
1.2 Ltr 12 bottles
2lt 9 bottles
Company offers - 1 cart purchase gets 2-3 bottles Aquafina free.
There is less in-store promotion due to good brand name and marketing by Pepsi itself.
SOURCE – Aggarwal Departmental Store, Shiv Shakti General Store.

23. SOURCES
FOR OUR
DATA
Primary Sources - Aggarwal Departmental
Store, Shiv Shakti General Store. Bakers Best
and Sweet Temptations Bakery in Ansal
Plaza
Secondary Sources -
https://www.ukessays.com/essays/marketing/
analysis-of-pepsi-co-in-india-marketing-
essay.php
https://www.slideshare.net/AshishPandey27
7/report-on-pepsico-india-market-
research-analysis
https://www.forbes.com/sites/panosmourdou
koutas/2019/07/13/pepsi-beats-coke-again/
https://www.statista.com/topics/1503/pepsic
o/

24. THANK YOU