1. Problem
Question 1 Question 2 Question 3 Question 4
Statement
The case talks about for to capitalize the total Indian opportunity, PepsiCo must touch every
Indian’s life every day, in order to achieve this objective the case focuses on 4 specific
questions.
Keeping those questions in mind, we developed a research methodology which in turn gave
us the solutions discussed in following slides.
Research Methodology:
• Discussion with Professors at IIM Ranchi
Qualitative • Secondary research from internet and databases (ISI
Emerging, Proquest, EBSCO & Indiastat, CRISIL, A.T.
Kearney)
• On field survey of retail stores, Hyper marts , kirana
stores in Gujarat, Mumbai and Ranchi.
Quantitative
• Visiting villages near Ranchi to study the reach of
PepsiCo products in rural areas.
• Cost – Benefit analysis for the New Products
Critical & Action suggested
Oriented • Case study Analysis for different companies running
along the same lines as PepsiCo.
1
The Three Marketeer's, IIM Ranchi

2. Problem
Question 1 Question 2 Question 3 Question 4
Statement
What is the right brand x pack x geography portfolio of brands mix (keeping in mind the 70:30 rule of existing brands: new brands)
for the different consumer groups across the value ladder. And why do you say so. Please outline clearly the principles of making
these choice.
Introduce a smaller pack
for people who may
prefer it on the move.
Price point: Rs 25
Smaller Pack to entice new
buyers.
Aliva has been shifted to
Affluent segment as there is
no food item by Pepsi for this
segment. The repositioning
has to be done and prices to
be increased accordingly
Should deliver traditional
flavour as well as signify
nutrition and health – no
such offering form Pepsi
at present – fill this gap)
Should be in the premium
category with health
benefits– priced
substantially high.
Should be priced lesser
than normal CSD for Pepsi
to enter the market –
200 ml = Rs. 5
300 ml = Rs. 8
600 ml = Rs. 15
1 Litre = Rs. 25
2
The Three Marketeer's, IIM Ranchi

3. Problem
Question 1 Question 2 Question 3 Question 4
Statement
What is the most effective (driving volumes/growth) and efficient (profitable) way of reaching the different
consumer groups (Reach as defined by GTM model AND Reach also as media model):
• The current distribution channel for Pepsi in rural India involves a Hub and Spoke model which reduces cost
and the number of long haul journeys over poor roads.
• A common method used to increase penetration in advanced countries is Vending Machines, which is not
effective in India primarily because of Machine Security and Lack of Suitable coin denominations.
To further enhance the penetration in rural India, we suggest an Pepsi is present in every avenue of advertising and promotion,
but Social Media. The presence of Pepsi in the digital media such
innovative model of Cooler cum Cooker named:
as in social media is very negligible:
urja Solar Panel
Cooke
Cooler
r
Charging Slots
Cost Benefit Analysis: There are 58 Lakh people who are on Facebook and live in India;
play Golf, baseball or extreme sports; buy luxury goods
Attractions:
and own an IPhone 5/4S/4
1. Mobile penetration is high in Rural India, and since electricity
supply is inconsistent having charging slots will pull people towards Such high targeted advertising using Social Media can be
the shops for charging. used to increase our reach in the Affluent Section of the
2. Providing a facility to warm their food before eating will be an
consumer pyramid.
added attraction. 3
The Three Marketeer's, IIM Ranchi

4. Problem
Question 1 Question 2 Question 3 Question 4
Statement
Which other company in India should be the benchmark company for PepsiCo to learn from in this area? Please give a detailed
account of points 1 and 2 above for them, and how they do it. And please present back at least 1 case study, but preferably 2 case
studies as below.
Case Study 1 Mc Donalds India
• McDonald’s pays acute attention to the product & channel pillar.
• McDonald’s is also celebrated for its customer focus. The company expends a great deal of energy understanding buying behaviors of
moms, kids and young adults and hence is able to straddle many consumer groups on the ladder
Source: A.T. Kearney Research on GTM
Product Upgrade Resell
Rigorous product testing before Upgrade the existing customer to try Keeping hold of existing customer by
How they do it: launching products; for to make more /costlier products from Mc watching intently he changing
their target customer wanting/willing Donalds by expanding the portfolio customer demands thereby
to buy the product. of products or through marketing increasing resale's..
Ex. Mc Spicy Paneer strategies.
Source: Business Insider War Room
Case Study 2 Balaji Namkeem
• Balaji Namkeen is popular in the state of Gujarat - now trying to enter the territories of Goa and Maharashtra
• Extremely efficient distribution channel making up for NO marketing at all!
Product Strategy Competitive Edge
Products launched after careful Balaji has ensured that their In rural areas of Gujarat, consumers
market research; very quick in products are available at a distance ask shopkeepers for PepsiCo’s
How they do it: introducing traditional snacks of every 100 mtrs; they have products like Kurkure and Lays but
after identifying the gaps in the achieved this feat by giving high due to high penetration of Balaji,
market margins and timely delivery to the shopkeepers give Balaji’s products
Products are similar to that of retailers
Pepsico’s – high substitutability Result – extremely high penetration
4
Source: On-Field Research done in Gujarat The Three Marketeer's, IIM Ranchi

5. Problem
Question 1 Question 2 Question 3 Question 4
Statement
Based on your primary/secondary research, please recommend consumer solutions (new product, new packaging, new channel,
new pack, etc.) that we could be missing, in playing meaningfully against one or more of the consumer segments
Diet Pepsi: Reason why it didn’t work New Products
With the Urban India growing more and more health
Personal • Thirst Quencher conscious by the day. It will make logical sense to get
Needs • Healthy into a product that is inherently taken as healthy by
India.
Expected “Flavored Milk”
Service • Sweet
• No Premium With the dairy industry to reach Rs 5,00,000 cr by
GAP 2015; and only one major player in the market AMUL.
GAP Perceived We believe that with milk procurement through milk
Service • Expensive cooperatives, and the strong distribution network
• No Premium
• Less Sweetened External of PepsiCo, we can carve out a huge market share.
• Same taste/Sweet
• Feminine Outlook Service communications to
Delivery • Campaigns customers
• Promotions The practice of using a combination of Pepsi and
local spices (masala) is ubiquitous in rural
India.. The drink is called “Masala Pepsi”.
Translation of • 1% Calorie In local fast food centers, no one asks for a Masala
perception into service • Launch of Diet Concept
Coke or Thumps up, they instinctively only ask
–quality specification • Match with customer expectations
for a Masala Pepsi.
We believe that Pepsi should capitalize on it and
launch one of its variants as “Masala Pepsi”
Management • Health conscious society
perception of Customer • Ready to pay premium
expectations • Cola flavored aerated drink
Primary Research: Mumbai, Phoenix Mall
Sample size: 100
* Working on GAPs identified will result in increased sales for the brand. 5
The Three Marketeer's, IIM Ranchi