The Cola Wars

1. Business India – September 2013
By,
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2. Content
 Pepsi and India
 Need to diversify
 Side effects of Soda
 Carbonated Soft Drink Industry
 PepsiCo’s Timeline
 Rural markets and PepsiCo
 Liquid Refreshment Beverage
 Inside PepsiCo
 India and Carbonated drinks (conclusion)
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3. Pepsi and India
 Was founded in 1965.
 Entry into the Indian market in 1989.
 PepsiCo is available in 200 countries.
 The Cola Wars.
 2013, PepsiCo -2nd largest food and beverages
MNC(Market Line- 2013).
 Diversification.
 More into foods, health drinks and hybrid products.
“We re in India, for India”3

4. Need to diversify
 22nd position in Interbrand Rankings(world ranking)
 Coke stands at 2nd position.
 Diet coke launched into market August 9, 1982.
 Indian market is unique for PepsiCo.
 Partnership has made it easier.
 Easier to launch products
 Customer’s became health conscious.
Diet Coke, called Coca-Cola Light in some countries, is a
sugar-free soft drink produced and distributed by The
Coca-Cola Company.
Health conscious
Customers -
Americans have grown 4
cm taller
Chinese have added 6cm
Indians have added just 1
cm
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6. Carbonated Soft Drink Industry
 CSD (carbonated soft drinks) industry under attack.
 Revenue declined by 3%.
 Contradictory effect in the Indian market
 Nielsen- unpredictable market dynamics
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8. Rural markets and PepsiCo
 Growth drivers.
 Use of hub-and- spoke model.
 PepsiCo’s Rural strategies.
 Expanding distribution reach.
 Placement of coolers.
 Brand activation.
 Rural market switching to packaged juices.
(Business Line March 2014)
E.g. Fruit juice : Tropicana
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9. Liquid Refreshment Beverage
 Potential growth over all segments.
 Lower penetration levels less than 2% of all beverages.
 PepsiCo Strategy :
 Availability.
 Ensuring trial points.
 “Good for you”
 “wellness drive” products .
E.g. Tropicana, Quaker
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10. Not just Soda
Food industry
Soft drinks industry
 Cheetos
 Kurkure
 Lay’s
 Lehar Namkeen
 Quaker Oats
 Uncle Chipps
 7UP
 Aquafina
 Gatorade
 Mirinda
 Mountain Dew
 Nimbooz
 Pepsi
 Slice
 Tropicana
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11. Inside PepsiCo
 Informal, irreverent, disciplined and a learning culture.
 “Can do” culture.
 Competitive nature.
 Unique culture.
 Innovation and Customer conscious.
“Our investments - $5.5 Billion 2020
– is PepsiCo’s Vote of confidence in
India’s Future” – Indra K. Nooyi
(chairman and Ceo)
“The Pepsi culture is more competitive,
because it competes with a well-
known, fearful competitor – COKE” –
Ravi Dhariwal (12 year employee of
Pepsi)
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12. India and Carbonated drinks
 Less sales in tier one and metropolitan cities.
 Rural people still prefer packaged soft drinks.
 Price plays an important factor.
 Another 20 years to loose out on carbonated drinks.
 Market established for snacks – 11000 cores.
 Snack market growing at 13-14% per year.
 41% per capita income is spent on foods and drinks.
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13. Questions?
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