Indra Nooyi, CEO of PepsiCo, is attempting to revive the company's declining market share against Coca-Cola through product reformulation and a new mid-calorie cola called Pepsi Next. Nooyi aims to more than double revenue from healthier drinks and snacks by 2020. However, past mid-calorie launches by Pepsi and Coke failed, and Pepsi Next faces challenges appealing to health-conscious consumers who prefer zero-calorie options or regular soda. The success of Pepsi Next will be important for Nooyi's longer term strategy and could determine whether Pepsi gets a new CEO if it does not work.

1. Can Indra Nooyi Revive PepsiCo?
Prepared By :
Ankit Sexena
Abul Bashar mallick
Chanchal Roi
Kartik Sharma
Swati Sexena

2. Pepsi Next
• Pepsi's biggest product launch in years.
• A “mid-calorie beverage” that contains 60% less sugar than
regular Pepsi-Cola.
• The drink comes as people increasingly move away from
sugary drinks to water and other lower-calorie beverages
because of “health concerns”.
• Tag Line : "Drink It to Believe It“
• “Created for consumers who seek the rich taste of full-calorie
cola” but have “not adopted the flavour profile of a zero
calorie cola”
=>The Question Is: Will Wall Street ?

3. A. Health Issues in North America
• Of 22 industrialized countries, the U.S. has the highest obesity
statistics.
• In USA total Obesity amounts to 33.60%.
• 2/3rd of Americans over age 20 are overweight.
• Nearly ”1/3rd of Americans” over age 20 are obese.
B. Nutritional Trend
• Bottled water accounting 9% to 11% from 2000-2010
• sports drink rose to 2.3%, from 1.2%.
• Diet soft drinks rose from 24.7% to 29.9% in last decade.

4. C. Loss of Market Share (Pepsi v/s Coke)
• Pepsi‟s carbonated Soft
Drinks Share decreases
to 9.5 from 13.5 %. Diet
Share remain Steady at
5.3%.
• Coke is still the top
selling 17% market
share. Diet Coke follows
with 9.9%.

5. D. Past Failure
• In 2001, Coke rolled out “C2” and Pepsi in
2004 introduced its “Pepsi Edge”.
• Both products also were taken off the
market by 2006 because of “poor sales”.
• Problem was that consumers either wanted
„regular soda‟ or a diet drink with „zero
calories‟- not something in between.

6. Indra Nooyi’s Business Strategy
• To more than double PepsiCo's revenue from nutritional
drinks and snacks to $30 billion by 2020.
• Has worked to reformulate PepsiCo's existing products.
• PepsiCo acquired a majority stake in Russian dairy
Wimm-Bill-Dann.
• Maximizing long-term shareholder value and addressing
some of society's biggest problems, such as
obesity, nutrition and health
• Taken out some of the sugar in many of its mainstream
products.

7. • It has added whole grains, fruits and vegetables to some of its
snacks.
• A different formula to more closely imitate the taste of a
regular soda.
• Come up with “Pepsi Next”.
• Mix of high fructose corn syrup & three
artificial sweeteners.
• Developed the cola by researching the
'taste curve' that consumers experience
when drinking a regular soft drink.

8. I. PepsiCo Company’s Target Customers
• Teenagers who are health conscious.
• For Overweight adults.
• For obese persons.
• For sportsmen.
II. Other Companies Focusing on Nutrition
• McDonald's has introduced
some healthier foods over
the years.

9. Media Campaign Coke v/s PepsiCo
 Success of Coke :
 Huge Investment in “The Beijing Olympics” : A media campaign
highlighting the country's homegrown athletes.
 Sponsoring reality-TV talent contest "American Idol“ for less than
$ 10 million. "Real winner of 'American Idol': Coke”.
 Failure of PepsiCo :
 PepsiCo rejected “The Super Bowl telecast”.
 Excess expenditure of $ 20 million on “The Pepsi Refresh Project”.
 "The X Factor," another singing competition, spending up to $60
million for the sponsorship.

10. New media campaigning Strategy
• By Celebrity Campaigning Actress “Eva LongLongoria”.
• Pepsi NEXT content distribution
approx. 41% of Pepsi NEXT
mentions are currently coming
via Twitter, and 49% via blogs.

11. • Conversations 79% positive. Pepsi‟s new campaign in which
Funny or Die improv comedians select fans to impersonate
trying the new soft drink was mentioned in 17% of
conversations, and those mentions were 100% positive.

12. Conclusion
• The Pepsi Next comes as people increasingly move away
from sugary drinks to water and other lower-calorie beverages
because of health concerns.
• It is also an attempt by Pepsi to revive the cola wars against
Coke and others.
• If MsNooyi‟s relaunch does not work Pepsi may get a new
chief executive. The company seems to be preparing for a
possible change at the top
• Pepsi is hoping to win back soft drink consumers with a
compromise.