- Pepsi was introduced in India in 1965 through a merger and has since expanded its product portfolio beyond its namesake beverage.
- It faces main competition from Coca-Cola, which has the largest market share in India and worldwide through strong branding, advertising, and exclusive retail partnerships.
- Pepsi targets teenagers and young adults with its "Fun for You" brand positioning and markets through mass advertising campaigns and sports sponsorships while distributing through a large network of distributors and retailers.
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’’.
5. COMPETITIVE ANALYSIS
COMPANY NAME PEPSI COCA-COLA REAL FRUIT JUICE
PARENT COMPANY PEPSICO THE COCA-COLA
COMPANY
DABUR
PRODUCTS SNACKS, BEVERAGES
AND PACKAGED WATER
SNACKS, BEVERAGES
AND PACKAGED WATER
COSTMETICS,UTILITY
PRODUCTS AND
BEVERAGES
PRICE 1.2 L ( RS. 60) 1.25L (RS. 65) 1L (RS. 83)
VARIANTS CLASSIC, DIET AND LIGHT CLASSIC, DIET AND LIGHT WIDE VARIETY OF FRUIT
FLAVOURS
DISTRIBUTION
CHANNEL
DIRECT STORE DELIVERY (OR
DSD), CUSTOMER
WAREHOUSE, AND THIRD-
PARTY DISTRIBUTOR
NETWORKS
DIRECT STORE DELIVERY (OR
DSD), CUSTOMER
WAREHOUSE, AND THIRD-
PARTY DISTRIBUTOR
NETWORKS
CARRYING AND FORWARDING
AGENTS AND THIRD-PARTY
DISTRIBUTOR NETWORKS
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
6. ● The main rival of Pepsi in India as well as worldwide.
● Largest market share worldwide and in India
● Tie ups with big brands like Mcdonald’s.
● 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
7. DABUR REAL JUICE
● An indirect rival to Pepsi
● Strong Dabur brand name has enabled it to capture the
market quickly.
● 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.
8. 1. Strong Brand Image.
2. Loyal Customer Base.
3. Global Presence and
Strong Supply chain .
4. Strong Product Portfolio.
1. Reliance on Carbonated drinks.
2. Weak Product offerings for
healthy drinks and beverages.
3. Lack of local exclusive tie-ups as
compared to Coca-Cola.
1. Increasing demand for
healthy drinks.
2. Partnerships with fast
food chains.
1. Reducing consumer need
and demand for
carbonated drinks.
2. Heavy Competition from
Global and Local players.
9. 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
1. Age – 15 to 45
2. Income- Average, above average and high earners
3. Occupation- Students, employees and professionals.
BEHAVIORAL
1. Purchase occasion- Parties and other get together
2. Degree of loyalty- loyal consumers
3. Benefits sought- Refreshment, quality, taste
PSYCHOGRAPHIC
1. Personality- Cool and youthful
2. Lifestyle- Trendy
10. 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.
Targeted 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.
11. PRODUCT
Pepsi is a carbonated soft drink manufactured by PepsiCo.
Core Benefit: To quench thirst and provide refreshment.
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 brand equity.
SKU’s: Bottles of 600ml, 1.5Lt, 2Lt etc.
Cans of 250ml.
Packaging: Packaging includes compliance with food safety regulations, environmental
sustainability, affordability, and consumer preferences, including convenience.
Variants: Classic, Diet and light variants for the Indian Market.
THE 4Ps OF MARKETING
12. PRICE
• 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.
• 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.
Quantity Price (Rs)
150 ml 20
250 ml 25
600 ml 35
2250 ml 90
1250 ml 60
13. PLACE
1. Pepsi has a huge distribution network in India. It must be huge because the brand needs
to be present in every nook and corner of the country to increase its sales.
2. The primary mode of distribution is through distributors who in turn give it to retailers,
restaurants, and convenience stores.
3. The secondary mode of distribution is directly through the company to bulk buyers and
major retailers who buy directly from the company.
4. The major challenge in distribution is the cost of bottling as well as the cost of
transportation.
5. The soft drink once packed is moved to the company warehouse from where it goes to
distributors and bulk buyers such as Big bazaars and Reliance Fresh.
6. 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.
14. 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 (1990)
• Dil maange more (1998)
• Oh yes abhi (2013)
• Har ghoot mein swag hai (2019)
15. 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.
16. 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 company offers 2 to 3% margin to the retailers and 1 to 3% margin for the distributors. For
distributors, the discount is based on the quantity as well as the payment terms. The better the
payment terms or the higher the quantity, the more is the discount given thereby keeping the
distributor motivated. Pepsi gives extra incentives to distributers based on how many retailers
they can onboard.
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)
12 bottles of 1.2 Lt
9 bottles of 2Lt
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.
17. RECOMMENDATIONS
• Should increase their reach to regional level’s more.
• 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
McDonald's which is a super popular food chain in India enables its
products to reach more customers.
• Pepsi’s association with carbonated drinks needs to change.