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BIAC 6 Final Presentation


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BIAC 6 Final Presentation

  1. 1. Problem Question 1 Question 2 Question 3 Question 4 StatementThe case talks about for to capitalize the total Indian opportunity, PepsiCo must touch everyIndian’s life every day, in order to achieve this objective the case focuses on 4 specificquestions.Keeping those questions in mind, we developed a research methodology which in turn gaveus 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 Marketeers, IIM Ranchi
  2. 2. Problem Question 1 Question 2 Question 3 Question 4 StatementWhat 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 makingthese 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 Marketeers, IIM Ranchi
  3. 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 suchinnovative model of Cooler cum Cooker named: as in social media is very negligible: urja Solar Panel Cooke Cooler r Charging SlotsCost Benefit Analysis: There are 58 Lakh people who are on Facebook and live in India; play Golf, baseball or extreme sports; buy luxury goodsAttractions: and own an IPhone 5/4S/41. Mobile penetration is high in Rural India, and since electricitysupply is inconsistent having charging slots will pull people towards Such high targeted advertising using Social Media can bethe shops for charging. used to increase our reach in the Affluent Section of the2. Providing a facility to warm their food before eating will be an consumer pyramid.added attraction. 3 The Three Marketeers, IIM Ranchi
  4. 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 resales.. 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 4Source: On-Field Research done in Gujarat The Three Marketeers, IIM Ranchi
  5. 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 drinkPrimary Research: Mumbai, Phoenix MallSample size: 100* Working on GAPs identified will result in increased sales for the brand. 5 The Three Marketeers, IIM Ranchi