PepsiCo is an American multinational food and beverage corporation headquartered in New York. In India, PepsiCo has strong brands and pursues a business strategy of product innovation, increasing manufacturing capacity, strengthening its supply chain, and expanding its agriculture program. PepsiCo has a large market share in many of its food and beverage categories in India, including a 60% share of the potato chips market and 70% share of the sports drink market. The company uses strategies such as acquisitions, divestments, joint ventures, and licensing agreements to grow its business globally and in India.

1. PEPSI CO.
Business Strategy -
India

2. INTRODUCTION
• American multinational food and beverage
corporation
• Headquartered in Purchase, New York
• Formed In 1965
• Second Largest Food And Beverage Business In
The World

3. FOOD
Potato
Chips
Western
Snacks
Finger
Sticks
Traditional
Snack
Health
Food-
OATS
60% 46% 1.2%
35%
35-40%

4. BEVERAGES
Iconic Refreshment Beverages
2%15% 2%
Hydrating/nutritional beverages
70%
Juice-based Drinks Soda Brands
Low-calorie option Fruit Juices
15% 23.4%
38%1%14%

5. • Large investor in India with strong brands
-Product innovation
-Increasing manufacturing capacity
-Ramping up market infrastructure
-Strengthening supply chain
-Expanding company’s agriculture programme
Business Strategy

6. • PepsiCo, Inc. was established through the merger of Pepsi-Cola and Frito-
Lay – 1965
• PepsiCo acquires Taco Bell.- 1971
• PepsiCo acquires Pizza Hut, Inc - 1977
• PepsiCo purchases Kentucky Fried Chicken (KFC). -1986
• PepsiCo acquires Walkers Crisps and Smith Crisps. -1989
• Pepsi-Cola forms a joint venture with Unilever to develop and market tea-
based drinks. -1991 (LIPTON)
CORPORATE STRATEGY-M&A

7.  Tricon Global Restaurants (YUM! Brands)
 Created by Pepsico. [ 1997]
 Pizza Hut
 Taco Bell
 KFC
 Hot 'n Now
 East Side Mario's
 D'Angelo Sandwich Shops
 Chevys Fresh Mex
 California Pizza Kitchen
 Other Divestments (1997)
Stolichnaya(via licensed agreement), Wilson Sporting Goods and North
American Van Lines
CORPORATE STRATEGY-Divestments

8. • PepsiCo and Starbucks form the North American Coffee Partnership to
jointly develop ready-to-drink coffee beverages. – 1994
• PepsiCo India brought “ DUKE ” brand in 1994 (Mumbai)
• PepsiCo acquires Tropicana Products from Seagram Company Ltd -1998
• Pepsi acquires IZZE Beverage Company. – 2003
• PepsiCo and Pepsi Americas jointly acquire Sandora, a leading juice
company in Ukraine.- 2006
• PepsiCo acquires Mabel, a leading producer of cookies, crackers and
snacks in Brazil. -2010
CORPORATE STRATEGY-M&A

9. CO-OPERATIVE STRATEGY
JV • Frito –Lay (1965)
• Pepsi – Lipton (JV with Unilever 1991)
• Tata Water Plus ( Nourish Co. : TGBL + PepsiCo.
February 2012)
• Quaker Oats Company (Merged 2001)
Licensing • Varun Beverages ,and
• 37 more bottling plants,
• 3 State of Art food plants
Strategic
Alliance
• Subway, KFC
Technology
Tie-Up
• PepsiCo’s 360-degree farmer connect program
(2004)

10. BCG
Market
Growth
Relative Market Share

11. PORTER`S Generic Strategy
Low Cost High Cost
Broad
(Industry Wide)
• Low prices based on
low operating costs
• Promotional offers
with discounted prices
• Attracting consumers
to some unique
features
• Innovative Products
Narrow
(Market
Segmentation)
• Lower investment in
resources
• Nineteen Food And
Beverages Brands
With Sales That
Exceed One Billion
Dollars
• Benefits from
specialization
• Enjoy a high degree of
customer loyalty

12. MARKET SHARE-REFERENCES
Products Market Share
Cheetos
Kurkure
Lays
Leher Namkeen
Uncle Chips
Quaker oats
--
46% / 14.3 (finger stick segment/ western snacks) L
60%/15.2 (potato chips/ western snacks) L
1.2% (traditional namkeen) F
35-40% (potato chips) F
35% L
7UP
Aquafina
Duke's
Gatorade
Mirinda
Mountain Dew
Pepsi
Slice
Tropicana
2% F
15% - F
-- F
70% L (sports drink)
--- F
14% F
15%F
23.4 % F
38 % F
http://articles.economictimes.indiatimes.com/2015-03-06/news/59844409_1_pepsi-co-india-snacks-sanjiv-pur
ihttp://www.livemint.com/Companies/Ra5VE5oLlQszTkuiJViZ7I/PepsiCo-India-to-streamline-snacks-brands.html
http://articles.economictimes.indiatimes.com/2013-01-04/news/36148969_1_oats-marico-s-saffola-breakfast-cereal-market
https://www.brandwatch.com/2015/05/the-coke-vs-pepsi-social-presence-showdown/

13. REFERENCES
• https://en.wikipedia.org/wiki/PepsiCo#cite_note-triconspinoff-11
• http://www.pepsico.com/company/Our-History
• https://www.thestreet.com/story/13463810/1/here-s-why-pepsico-hasn-rsquo-t-made-a-huge-
acquisition-recently.html
• http://www.pepsicoindia.co.in/purpose/environmental-sustainability/replenishing-water.html
• http://www.pepsicoindia.co.in/purpose/environmental-sustainability/partnership-with-farmers.html
• http://www.business-standard.com/article/companies/how-india-became-pepsi-s-right-choice-
114032701308_1.html