PROJECT REPORT OF BRAND MANAGEMENT
ON
Submitted to :
Prof.Sriram Rajann
Submitted by:
Samyak
11BSPHH010712
BDM(SEC-D)
LIST OF CONTENTS
1
HISTORY OF SOFT DRINKS
1.1
INTRODUCTION OF PEPSI TYPE
2
COMPANY PROFILE
2.1
HISTORY OF PEPSI
2.2
PEPSICO IN INDIA
2.3
PEPSICO BRANDS
3
ORGANISATION STRUCTURE
3.1
PRODUCT PROFILE OF THE COMPANY
3.2
INDUSTRY/COMPANY BACKGROUND
3.3
GROWTH PROMOTIONAL ACTIVITIES
3.4
PEPSICO’S GLOBAL COMMITMENT TO PERFORMANCE WITH PURPOSE
4
BRAND EQUITY OF PEPSICO:
4.1
THE TOP TEN TRAITS
5
PEPSI’S MARKETING MIX
5.1
PEPSI – THE INDIAN EXPERIENCE
5.2
MARKET SEGMENTATION
5.3
PROMOTIONAL ACTIVITIES
5.4
MERCHANDISING POLICY
6
DISTRIBUTION CHANNEL OF PEPSI
7
MARKETING STRATEGY
8
SWOT ANALYSIS OF PEPSI
9
SUGGESTED REFERENCES
ACKNOWLEDGEMENT
We are extremely grateful and remain indebted to our faculty Prof. SRI RAM RAJANN, IBS
Hyderabad for being a source of inspiration and for his constant support in the preparation of
this project report. We are thankful to him for his constant constructive criticism and
invaluable suggestions, which benefited us a lot while developing PROJECT REPORT ON
“BRAND MANAGEMENT OF PEPSI”. He has been a constant source of inspiration and
motivation for hard work. He has been very co-operative throughout this project work.
Through this column, it would be our utmost pleasure to express our warm thanks to him for
his encouragement, co-operation and consent without which we mightn’t be able to complete
this project.
Finally, yet importantly, we would like to express our heartfelt thanks to our beloved parents
for their blessings, our friends/classmates for their help and wishes for the successful
completion of this project.
Regards
SAMYAK
(11BSPHH010712)
SECTION-D
1
HISTORY OF SOFT DRINKS
The history of soft drinks began with the end of the last century. Its history dates back to the
civil war in USA in 1860. At the time people were suffering from many diseased. Problem at
that time was how to cure all these disease since no remedy was present at that time. It was a
big question for American people. So in 1885 Mr. JihnPalmwartion, who lived in Antonica,
made a drink and registered it as FRENCH WINECOLA. In the beginning the drink was
made with mixture of cocaine and alcohol but later on it was converted and changed into a
soft drink. Now it is named as Coca-Cola. Anew brand named Pepsi-Cola came in the year
1887. Around 1984 the first branded soft drink came in the Indian market. This soft drink was
named as “Gold Spot”. Parle Exports Pvt. Ltd. was the first Indian Company to introduce a
lemon soft drink, this drink was known as “Limca” and it was introduced in1970s. However,
before this drink had introduced” Cola Pepino” which was withdrew in face of tough
competition. In the year 1977 Coca-Cola left Indian market and this brought in an
opportunity for various Indian companies to show their caliber. At this time a new soft drink
was introduced by Parle Products and this was names as “Thums-Up”. This was a Coca-Cola
drink which had a burnt sugar colour. This drink was introduced with a mighty “Happy Days
Are Here Again”. There was another company named Pure Drinks which introduced the soft
drink named “Campa Cola” along with orange and lemon flavour. Just after this many more
companies entered the Indian soft drink market. A soft drink named “Double-7” had been
introduced by a company Modern Bakers. Another rcompany, Mohan Meakins also came
with a soft drink named “Marry & Puck-Up”.Mcdowell came with “Thrill, Rush,
Sprit”.Previously there was no competition in the Indian soft drink market but with all these
companies coming in the Indian market a huge competition was taking place with high
voltage advertisement. But in the year 1988 Pepsi-Cola was given permission to sell its soft
drinks in the Indian market by the Government of India. Coca-Coal also came back in 1993.
1.1 INTRODUCTION OF PEPSI TYPE:
Public (NYSE: PEP)Founded 1965Headquarters Purchase, New York, USA Key people
Indra Nooyi, Chairwoman, President & CEO Industry Food and beverage Products Pepsi
Tropicana Products Gatorade Lays Doritos Frappuccino (for Starbucks) Mountain Dew
Revenue $39.474 billion USD (2007)Operating income $4.551 billion USD (2007)Net
income $5.591billion USD (2007) 11% profit margin Employees 153,000(2005)
6. PepsiCo, Inc. is currently one of the most successful consumer products company in
the world with annual revenues exceeding $30 billion and has more than
480,000employees.PepsiCo, Inc. began as a successor to a company incorporated in 1931,
known asLoft Inc. Once known as Pepsi-Cola, the company expanded its business
andadopted its current name, PepsiCo, after a merger with Frito-Lay in 1965.This merger
dramatically increased PepsiCos market potential and set the foundation for the
company’s tremendous growth. PepsiCos products are recognized and are most respected
all around the globe.Currently, PepsiCo divisions operates in three major US and
international businesses:beverages, snack foods, and restaurants. In each of these
businesses, PepsiCo has attained a leadership position as being the world leader in soft
drink bottling g, the world largest snack chip producer, and the world largest franchised
and company operated restaurant system.The corporations increasing success has been
based on high standards of performance, marketing strategies, competitiveness,
determination, commitment, andthe personal and professional integrity of their people,
products and business practicesPepsiCos overall mission is to increase the value of our
shareholders investmentsthrough sales growth, investments and financial activities.
PepsiCo believes theirsuccess depends upon the quality and value of their products by
providing a safe,whole some, economically efficient and a healthy environment for their
customers;and by providing a fair return to their investors while maintaining the
higheststandards of integrity.
2 COMPANY PROFILE
In 1893 Caleb Bradham, a young pharmacist from New Bern, North Carolina,begins
experimenting with many different soft drink concoctions; patrons and friendssample
them at his drugstore soda fountain. In 1898 One of Calebs formulations, known as
"Brads Drink," a combination ofcarbonated water, sugar, vanilla, rare oils and cola nuts,
is renamed "Pepsi-Cola" onAugust 28, 1898. Pepsi-Cola receives its first logo. Pepsi-Cola
North America, headquartered in Purchase, N.Y., is the refreshmentbeverage unit of
PepsiCo Beverages and Foods North America, a division of PepsiCo,Inc. PepsiCo
Beverages and Foods North America also comprises PepsiCos Tropicana,Gatorade and
Quaker Foods businesses in the United States and Canada. Pepsi-Cola North Americas
carbonated soft drinks, including: Pepsi, Diet Pepsi,Pepsi Twist, Mountain Dew,
Mountain Dew Code Red, Sierra Mist, and Mug Root Beeraccount for nearly one-third of
total soft drink sales in the United States. Pepsi-Cola North Americas non-carbonated
beverage portfolio includes Aquafina,which is the number one brand of bottled water in
the United States, Dole single-servejuices and SoBe, which offers a wide range of drinks
with herbal ingredients. Thecompany also makes and markets North Americas bestselling, ready-to-drink iced teasand coffees via joint ventures with Lipton and Starbucks,
respectively. PepsiCo, Inc. is one of the worlds largest food and beverage companies.
Thecompanys principal businesses include: Frito-Lay snacks Pepsi-Cola beverages
 Gatorade sports drinks Tropicana juices Quaker Foods
PepsiCo, Inc. was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay.
Tropicana was acquired in 1998. In 2001, PepsiCo merged with the Quaker
OatsCompany, creating the world’s fifth-largest food and beverage company, with 15
brands– each generating more than $1 billion in annual retail sales. PepsiCo’s success is
theresult of superior products, high standards of performance, distinctive
competitivestrategies and the high level of integrity of our people. There are many who
feel that Pepsi-Cola had the first move advantage in India.Little do they know about
Pepsi-Cola’s initial foray into Indian soft drinks industry wayback in 1956? Coca–Cola
had entered the country just a year back in 1955. But later Pepsi-Colawithdrew from the
country in 1961 due to bottling problems. Pepsi-Cola entered India inApril 1989 by
setting operation in beverages, snacks & agribusiness. At this time Parlehad 70% of the
market share of the total soft drink market. Initially it faced some trouble in entering the
market due to strong resistance frommost of the domestic soft drink industry and the
advocates of “Swadeshi”. The Indianeconomy was not liberalized and proved to be
another barrier. Pepsi-Cola removed thesebarriers by: Promising the government to focus
considerable selling efforts in the rural area tohelp economic development.“Promising to
help boost the expert of agricultural products” Offering to transfer the food processing,
packaging & water treatment technologyto India.
2.1
HISTORY OF PEPSI
PepsiCos beverage business was founded in 1898 by a pharmacist named CalebBradham
who created a special beverage, a soft drink, in the back room of his drug storein New
Bern, North Carolina.This new soft drink called "Brads Drink" had a unique mixture of
kola nut extract,vanilla and rare oils.Caleb began to advertise his new creation with the
theme "Exhilarating, Invigorating,Aids Digestion" and renamed it as "Pepsi-Cola."Caleb
Bradham began his cola operation in 1902. The Pepsi Cola Company washeadquartered
in the back room of his drug store where he packaged the syrup for sale toother soda
fountains. The business increased, and on June 16, 1903, "Pepsi-Cola" wasofficially
registered with the US Patent Office.And as a result, Caleb Bradham began to franchise
Pepsi-Cola to many independentinvestors. By the end of 1910, Pepsi-Cola was franchised
in 24 states.Until World War I, Pepsi-Cola Company achieved 17 years of success and a
new themewas introduced, "Drink Pepsi-Cola. It will satisfy you."However, after the war
years, Caleb Bradham suffered bankruptcy. As a result, Pepsi-Cola became a subsidiary
to Loft Incorporated, a large chain of candy stores and sodafountains.
Today, Pepsi-Cola Company is a major division of PepsiCos corporate structure. PepsiCola Company now produces and markets a wide range of beverages to retail,
restaurantsand food services in more than 191 countries and territories around the world
and bringsin an annual revenue of $10 billion.There are 200 plants in the US and Canada,
as well as, 530 plants throughout the rest ofthe world, that produces Pepsi-Colas
beverages.Since the creation of Pepsi-Cola in 1898, Pepsi-Cola Company has introduced
13beverages that wear the Pepsi-Cola trademark. Five of Pepsi-Colas brand names:Pepsi,
Diet Pepsi, Mountain Dew, 7 UP, and Mirinda, each brings in annual revenue inconsumer
sales of $1 billion.In 1992, a partnership between Thomas J. Lipton and Pepsi was
formed.This partnership produces, markets, and distributes Lipton Brew, Lipton Brisk
andLipton Fountain Ice-Tea. And in 1993, Pepsi Max a low calorie cola was created
andintroduced only for the international markets. Pepsi Max is now produced in over
40countries and is the third largest-selling cola brand outside the US.PepsiCo is
continuing to expand and introduce new alternative beverages in the market.There are
four alternative beverages that are currently being tested in our market today.Mazagran, a
cold sparkling coffee based beverage, Aquafina, bottled water, and a low fatmilk shake
called Smooth Moos.The latest beverage was launched on May 22, 1996 in Philadelphia.
Pepsi-Kona,a new cola is a combination of the Pepsi-Cola flavor and the Kona blend of
coffee.
2.2
PEPSICO IN INDIA
PepsiCo is a world leader in convenient foods and beverages, with 2006 revenues ofmore
than $35 billion and more than 168,000 employees across the world. Its worldrenowned
brands are available in nearly 200 countries and territories.PepsiCo entered India in 1989
and in the span of a little more than a decade, has grown tobecome the country’s largest
selling food and beverage companies. One of the largestmultinational investors in the
country, PepsiCo has established a business which aims toserve the long term dynamic
needs of consumers in India.The group has built an expansive beverage, snack food and
exports business and tosupport the operations are the group’s 37 bottling plants in India,
of which 16 arecompany owned and 21 are franchisee owned. In addition to this,
PepsiCo’s Frito Laysnack division has 3 state of the art plants.PepsiCo’s business is based
on its sustainability vision of making tomorrow better thantoday. Our commitment to
living by this vision every day is visible in our contribution toour country, consumers,
farmers and our people.Providing consumers with balance and choicePepsiCo India’s
expansive portfolio includes iconic refreshment beverages Pepsi, 7 UP,Mirinda and
Mountain Dew, in addition to low calorie options– Diet Pepsi and 7UpLight, hydrating
and nutritional beverages such as Aquafina drinking water, isotonicsports drinks Gatorade, and 100% natural fruit juices and juice based drinks – Tropicana
and Slice. Our local brands – Lehar Everest Soda, Dukes Lemonade and Mangola
complete our diverse spectrum of brands. PepsiCo’s snack food company, Frito-Lay, is
the leader in the branded potato chip market and was amongst the first companies to
eliminate the use of trans fats and ‘msg’ in its products. It manufactures .Lay’s Potato
Chips;Cheetos extruded snacks, Uncle Chips and traditional namkeen snacks under the
Kurkureand Lehar brands. Quaker Oats, Lehar Lites, low fat and roasted snack options
enhancethe choices available to the growing health and wellness needs of our consumers.
 PepsiCo India has 40 bottling plants in India. PepsiCo generates direct employment
for more than 4000 people in India and indirect employment for 60,000 people. Sells
more than 200 million crates annually PepsiCo generates estimated annual retail sales
of U.S$700 million in India. PepsiCos annual exports from India are worth over U.S$60
million. PepsiCo has invested U.S$1.5 million investment to cooperatively develop a
comprehensive agro technology program in partnership with the Punjab government to
help farmers improve the quality and yield of their crops. PepsiCo supports sea weed
cultivation projects in Tamil Nadu which provide members of womens self help groups
with sustainable livelihoods.
PepsiCo has established zero waste centers and PET recycling supply chains.
SLOGANS OF PEPSI
1939: "Twice as Much for a Nickel"1950: "More Bounce to the Ounce"1950: "Any
Weather is Pepsi Weather"1957: "The Light Refreshment"1958: "Be Sociable, Have a
Pepsi"1961: "Now Its Pepsi for Those Who Think Young"1963: "Come Alive, Youre in
the Pepsi Generation".1967: "(Taste that beats the others cold) Pepsi Pours It On 1969:
"Youve Got a Lot to Live, and Pepsis Got a Lot to Give"1975: "Have a Pepsi Day"1977:
"Join the Pepsi People (Feeling Free)"1980: "Catch That Pepsi Spirit" David Lucas
composer1981: "Pepsis got your taste for life"1983: "Pepsi Now! Take the
Challenge!"1984: "Pepsi. The Choice of a New Generation" (Commercial withMichael
Jackson, featuring Pepsi version of Billie Jean)1986: "Weve Got The Taste" (Commercial
with Tina Turner)1990: "You got the right one Baby UH HUH" ( sung by Ray Charles
)1991: "Gotta Have It"/"Chill Out"1992: "Be Young, Have Fun, Drink Pepsi"1995:
"Nothing Else is a Pepsi"1996: "Pepsi:Theres nothing official about it" (During the Wills
WorldCup(Cricket) held in India/Pakistan/Srilanka)1997: "GeneratioNext"." With the
Spice Girls "1998: "Yeh Dil Mange More"(In Hindi meaning "My heart wants more")
1999: "Ask for More"/"The Joy
of Pepsi-Cola"
(Commercial with
BritneySpears/Commercial with Mary J. Blige)2003: "Its the Cola"/"Dare for More"2005:
"Wild Thing"/"Ask For More" (With Jennifer Lopez & BeyoncéKnowles)2006: "Why
You Doggin Me"/"Taste the one thats forever young"Commercial featuring Mary J.
Blige2007: "More Happy"/"Taste the one thats forever young" (MichaelAlexander)2008:
"Yeh hai Youngistaan Meri Jaan!" (India)2008: "Pepsi Stuff" Super Bowl Commercial
(Justin Timberlake)
2.3
PEPSICO BRANDS
MISSION : PEPSICO MISSION
JAIPURIA GROUPIndian Beverages industry’s size is Rs. 8000 crores and it is
dominated by twoplayers viz Pepsi and Coke only. This high profile industry has lot of
potential forgrowth as per capita consumption in India is 8 bottles a year as compared to
20bottles in Srilanka ,14 in Pakistan. While 12 b0ttles a person in Nepal.The RKJ Group
is India’s leading supplier of retailer brand carbonated and Non-carbonated soft drinks
with beverage manufacturing facilities in India Nepal. Itsexperience in the beverage
industry dates back to the sixties when it had the firstFranchisee at Agra.The group
manufactures and markets carbonated and Non-carbonated soft drinksand Mineral water
under Pepsi Brand. The various flavors and sub brands arePepsi, Mirinda Orange,
Mirinda Lemon, Mountain Dew, 7UP, Slice Mango, SliceOrange, Evervess Soda and
Aqauafina.
It has the licenses to supply beverages in the territories of western UP, part of MP,half of
Haryana, whole of Rajsthan, Goa, 3 districts of Maharashtra ,9 districts ofKarnataka, and
whole of Nepal. The group has in total 18 bottling plants in Indiaand Nepal and is
responsible for producing and marketing 44% of Pepsirequirement in India. R.K.J
GROUP · VARUN BEVERAGES LTD- PEPSI · DEVAYANI FOOD INDUSTRIES
PVT. LTD-CREAM BELL · COSTA COFFEE · PIZZA HUT · D.P.S. · SAINT
MONTAS · K.F.C
VARUN BEVERAGE LTD.Varun Beverages Ltd. Was the new start which was born in
1999 among the JaipuriaGroup. This is the rising sun of Jaipuria group. Mr. Ravi Kant
Jaipuria who is thechairman of this bottling plant has good result.The main object of this
unit is manufacturing, production, selling, distribution, andbottling of beverages, created
water soft drinks etc. Mr. Ravi Kant Jaipuria got bestPepsi Bottler Award in 1998 for the
best bottler of the world. The Pepsi award is thehighest honorable award to any
franchisee.It can be said with absolute certainty that the RKJ Group has carved out a
special nichefor itself. Our services touch different aspects of commercial and civilian
domains likethose of Bottling, Food Chain and Education. Headed by Mr. R. K. Jaipuria,
the groupas on today can lay claim to expertise and leadership in the fields of education,
food andbeverages.The business of the company was started in 1991 with a tie-up with
Pepsi Foods Limitedto manufacture and market Pepsi brand of beverages in
geographically pre-definedterritories in which brand and technical support was provided
by the Principals viz., PepsiFoods Limited. The manufacturing facilities were restricted at
Agra Plant only.Varun Beverages Ltd. is the flagship company of the group.The group
also became the first franchisee for Yum Restaurants International [formerlyPepsiCo
Restaurants (India) Private Limited] in India. It has exclusive franchise rights forNorthern
& Eastern India. It has total 46 Pizza Hut Restaurants & 1 KFC Restaurantunder its
company.We diversified into education by opening our first school in Gurgaon under
managementof Delhi Public School Society. The schools of the group are run under a
Registered Trustnamely Champa Devi Jaipuria Charitable Trust.
Companies are medium sized, professionally managed, unlisted and closely held
betweenIndian Promoters and foreign collaborators.The group added another feather to its
cap when the prestigious PepsiCo“International Bottler of the Year” award was presented
to Mr. R. K. Jaipuria forthe year 1998 at a glittering award ceremony at PepsiCo’s
centennial yearcelebrations at Hawaii, USA. The award was presented by Mr. Donald M.
Kendall,founder of PepsiCo Inc. in the presence of Mr. George Bush, the 41st President
ofUSA, Mr. Roger A. Enrico, Chairman of the Board & C.E.O., PepsiCo Inc. and
Mr.Craig Weatherup, President of Pepsi Cola CompanVisionBeing the best in everything
we touch and handle.MissionContinuously excel to achieve and maintain leadership
position in the chosen businesses;and delight all stakeholders by making economic value
additions in all corporatefunctions.Our SuccessProduction of innovative, high quality
retail branded beverages combined with world-class packagingDriven by a management
team with a relentless focus on achieving superiorcustomer service, driving earnings
improvement and increasing shareholder value.Our PeopleAt RKJ we are creating an
environment where our employees enjoy a greater degree ofempowerment - both
individually and in their work teams.
Our employees are equipped with the necessary tools, training and management
backupfor strong performance and accountability, as well as with an environment of
opencommunication and involvement.
About Pepsico & Its Products
PepsiCo Mission
"To be the world's premier consumer products company focused on convenience
foodsand beverages. We seek to produce healthy financial rewards to investors as we
provideopportunities for growth and enrichment to our employees, our business partners
and thecommunities in which we operate. And in everything we do, we strive for
honesty,fairness and integrity."
Corporate Profile
PepsiCo In India
PepsiCo entered India in 1989 and has grown to become one of the country’s leading
food and beverage companies. One of the largest multinational investors in the country,
PepsiCo has established a business which aims to serve the long term dynamic needs of
consumers in India.
PepsiCo India and its partners have invested more than U.S.$1 billion since the company
was established in the country. PepsiCo provides direct and indirect employment to
150,000 people including suppliers and distributors. PepsiCo nourishes consumers with a
range of products from treats to healthy eats, that deliver joy as well as nutrition and
always, good taste. PepsiCo India’s expansive portfolio includes iconic refreshment
beverages Pepsi, 7 UP, Mirinda and Mountain Dew, in addition to low calorie options
such as Diet Pepsi, hydrating and nutritional beverages such as Aquafina drinking water,
isotonic sports drinks - Gatorade, Tropicana100% fruit juices, and juice based drinks –
Tropicana Nectars, Tropicana Twister and Slice. Local brands – Lehar Evervess Soda,
Dukes Lemonade and Mangola add to the diverse range of brands.
PepsiCo’s foods company, Frito-Lay, is the leader in the branded salty snack market and
all Frito Lay products are free of trans-fat and MSG. It manufactures Lay’s Potato Chips,
Cheetos extruded snacks, Uncle Chipps and traditional snacks under the Kurkure and
Lehar brands. The company’s high fibre breakfast cereal, Quaker Oats, and low fat and
roasted snack options enhance the healthful choices available to consumers. Frito Lay’s
core products, Lay’s, Kurkure, Uncle Chipps and Cheetos are cooked in Rice Bran Oil to
significantly reduce saturated fats and all of its products contain voluntary nutritional
labeling on their packets.
The group has built an expansive beverage and foods business. To support its operations,
PepsiCo has 43 bottling plants in India, of which 15 are company owned and 28 are
franchisee owned. In addition to this, PepsiCo’s Frito Lay foods division has 3 state-of
the- art plants. PepsiCo’s business is based on its sustainability vision of making
tomorrow better than today. PepsiCo’s commitment to living by this vision every day is
visible in its contribution to the country, consumers and farmers.
3 ORGANISATION STRUCTURE
Chairman CEO
Unit Manager TDM
ADCCustomer Executive Customer
ExecutiveDistributers A,B,C Distributers E,F Route Agents Route Agents Helper Helper
CONTRIBUTION OF BRANDS IN NOIDA Pepsi 50% 7up 5% Mountain Dew 15%
Mirinda orange 5% Mirinda lemon 5% Slice 20%
3.1
PRODUCT PROFILE OF THE COMPANY
There are eight brands of Pepsi-Cola named as follows: Pepsi Mountain Dew
Mirinda(Lemon) Mirinda(Orange) Slice Lehar 7-Up Lehar Soda Aquafina
Water. These eight brands differ in taste, flavor and also in their colours.
PEPSIType ColaManufacturer PepsiCo, Inc.Country of Origin United StatesIntroduced
1903 Coca-ColaRelated products RC ColaPepsi-Cola, commonly called Pepsi, is a cola
soft drink produced and manufactured byPepsiCo. It is sold worldwide in stores,
restaurants and from vending machines. Thedrink was first made in the 1890s by
pharmacist Caleb Bradham. The brand was trademarked on June 16, 1903. There have
been many Pepsi variants produced over theyears, including Diet Pepsi, Pepsi Max, Pepsi
Samba, Pepsi Blue, Pepsi Gold, Pepsi Jazz,Pepsi Next (available in Japan and South
Korea), and Pepsi Easter Hop. Mountain Dew Type Citrus soft drink Manufacturer
PepsiCo, Inc.Country of origin United States Introduced 1964 (nation-wide) Diet
Mountain Dew Variants Mountain Dew LiveWire
Mountain Dew is a caffeinated, sweet, citrus-flavored soft drink produced byPepsiCo,
Inc. It was invented in Marion, Virginia and first marketed in Knoxville,Tennessee in
1948, then by the Minges family in Fayetteville, North Carolina and across [1]the United
States in 1964. When removed from its characteristic green bottle,Mountain Dew is bright
yellow-green and semi-opaque.
Aquafina Type Water Beverage Manufacturer PepsiCo, Inc. Country of origin United
States Introduced 1994Aquafina is a popular brand of bottled water. It was first
distributed in Wichita, Kansasin 1994, and was distributed across the United States ,
Canada , Turkey and Vietnam by1997. As of 2003, it had become the United States topselling bottled water brand inmeasured retail channels.
The water is standard tap water but goes through an extensive purification process
thatincludes charcoal filtration, reverse osmosis and ozonation. Aquafina is sold in 12ounce,500-mL (16.9-ounce), 20-ounce, 24-ounce, 1-liter, and 1.5-liter bottles
Slice Type Flavored soft drink Manufacturer PepsiCo, Inc.Country of origin USA
Introduced 1984Related products Sierra Mist, Sprite, Fanta, TeemSlice is a line of fruitflavored soft drinks manufactured by PepsiCo and introduced in1984, with the LemonLime and Mandarin Orange flavors
MirindaMirinda is a brand of soft drink available in fruit varieties including orange,
grapefruit,apple, strawberry, pineapple, banana, and grape flavors. It is part of a beverage
area oftenreferred to as the flavor segment, comprising carbonated and non-carbonated
fruit-flavored beverages. The orange flavor of Mirinda represents the majority of Mirinda
salesworldwide.
Lehar Soda:- This is a soda drink. It has no colour and no flavour. It isgenerally used with
alcohol and used by adults.
PepsiCo India . is one of the reputed companies amongst various cold drink
Industry.PepsiCo is having different product with its product line.Pepsi has acquired a big
share of market in India and in other countries because of itscompetitive pricing,
distribution system and through good customer relation.Like in other industry Pepsi is
also having different competitors. In India Pepsi is havingonly one competitor that is
coca-cola.As we know in summer season demand of cold drink raised but in some cases it
is unableto provide all flavors to its retailers. The quality of product is different in
differentcountries.Pepsi doesn’t facilitate credit facility to its customer whereas customers
have to providecredit facilities to its consumer so as to increase his selling and to
maintain relation.Now, the President and CEO of Pepsi Indira Nooyi have announced that
there will be onequality for Pepsi all over and there will a symbol on all product of the
Pepsi. This willhelp in increase the sale of Pepsi Product.Despite of all the strength and
weakness its is also having some threats it is also havingOpportunity still to grow more
and competitor with its competitor.Over all the company are a very good company and
one of the leading and growingcompanies in India.
3.2
INDUSTRY/COMPANY BACKGROUND
Soft drink market size for FY00 was around 270 million cases (6480mn bottles). The
market witnessed 5- 6% growth in the early‘90s. Presently the market growth has growth
rate of 7- 8% per annum compared to 22% growth rate in the previous year. The market
size for FY01 is expected to be 7000 million bottles.
SOFT DRINK PRODUCTION AREA
The market preference is highly regional based. While cola drinks have main markets in
metro cities and northern states of UP, Punjab, Haryana etc. Orange flavored drinks are
popular in southern states. Sodas too are sold largely in southern states besides sale
through bars. Western markets have preference towards mango flavored drinks. Diet coke
presently constitutes just 0.7% of the total carbonated beverage market.
3.3
GROWTH PROMOTIONAL ACTIVITIES
The government has adopted liberalized policies for the soft drink trade to give the
industry a boast and promote the Indian brands internationally. Although the import and
manufacture of international brands like Pepsi and Coke is enhanced in India the local
brands are being stabilized by advertisements, good quality and low cost. The soft drinks
market till early 1990s was in hands of domestic players like campa, thumps up, Limca etc
but with opening up of economy and coming of MNC players.
Pepsi and Coke the market has come totally under their control The distribution network of
Coca cola had 6.5 lakhs outlets across the country in FY00, which the company is planning to
increase to 8 lakhs by FY01. On the other hand Pepsi Co's distribution network had 6 lakh
outlets across the country during FY00 which it is planning to increase to 7.5 Lakh by FY01.
TYPES
Soft drinks are available in glass bottles, aluminum cans and PET bottles for home
consumption. Fountains also dispense them in disposable containers Non-alcoholic soft
drink beverage market can be divided into fruit drinks and soft drinks. Soft drinks can be
further divided into carbonated and non-carbonated drinks. Cola, lemon and oranges are
carbonated drinks while mango drinks come under non carbonated category.
The market can also be segmented on the basis of types of products into cola products
and non-cola products. Cola products account for nearly 61-62% of the total soft drinks
market. The brands that fall in this category are Pepsi, Coca- Cola, Thumps Up, diet
coke, Diet Pepsi etc. Non-cola segment which constitutes 36% can be divided into 4
categories based on the types of flavors available, namely: Orange, Cloudy Lime, Clear
Lime and Mango.
PERFORMANCE WITH PURPOSE
Performance with Purpose articulates PepsiCo India's belief that its businesses are
intrinsically connected to the communities and world that surrounds it. Performance with
Purpose means delivering superior financial performance at the same time as we improve
the world.To deliver on this commitment, PepsiCo India will build on the incredibly strong
foundation of achievement and scale up its initiatives while focusing on the following 4
critical areas that have a business link and where we believe that we can have the most
impact.
REPLENISHING
WATER PepsiCo India continues to replenish water and aims to achieve positive water
balance by 2009, which means it is committed to saving and recharging more water than it
uses in its beverage plants.
PARTNERSHIP WITH FARMERS
PepsiCo India’s Agri-partnerships with farmers help more than 22,000 farmers across the
country earn more.
WASTE TO WEALTH
PepsiCo India continues to convert Waste to Wealth, to make cities cleaner. This award
winning initiative has established Zero Solid Waste centres
HEALTHY KIDS
PepsiCo India will stay committed to the health and well-being of children. It will continue to
provide children with a healthy and fun portfolio while simultaneously tackling the calories
out’ side of the equation by expanding its Get Active programme for that benefit more than
2,00,000 community members throughout the country kids, especially for school going
children. PepsiCo will also launch and distribute products directly aimed at addressing
nutritional deficiencies and will launch a pilot program that directly delivers against the
United Nations’ Millennium Development Goal to eradicate extreme poverty and hunger by
2015.
3.4
PEPSICO’S
GLOBAL
COMMITMENT
PERFORMANCE WITH PURPOSE
TO
PepsiCo believes that its performance is fundamentally connected to its purpose agenda
which represents the commitment to give back as the company grows. It is a continuing
journey that spans three major areas of focus – human, environmental and talent
sustainability.
Human Sustainability reflects PepsiCo’s goal of nourishing consumers with products that
range from treats to healthy eats. PepsiCo’s products have always offered consumers
nutrition as well as great taste. The progress that PepsiCo has made under the Human
Sustainability pillar includes reformulating some of its products to improve their
nutritional profile while launching products that reflect consumer demand for healthier
nutritious snacks and beverages. PepsiCo partners with Governments, health officials and
Non Governmental Organisations to help address obesity concerns and it continues to
provide consumers with new product choices and innovations.
Environmental Sustainability is based on PepsiCo’s commitment to strive to replenish the
resources used where possible, and minimize the impact on the environment. PepsiCo
continues to work to further reduce its water and electricity consumption and improve its
packaging sustainability. Across the world, PepsiCo has re-used water from its
processing plants and has worked with local communities to provide access to clean
water, while supporting farmers to deliver “more crop per drop.”
Talent Sustainability is founded on PepsiCo’s belief that cherishing its extraordinary
group of people is crucial to building an empowered workforce. PepsiCo pursues
diversity and creates an inclusive environment which encourages associates to bring their
whole selves to work. PepsiCo has increased female and minority representation in the
management ranks and has encouraged employees to participate in community service
activities while continuing to create rewarding job opportunities for people with different
abilities.
Together, PepsiCo associates across the world are building on the platform of Human,
Environment and Talent Sustainability, while delivering great financial results.
PepsiCo India’s Performance With Purpose
To deliver on the commitment of Performance With Purpose, PepsiCo India continues to
build on its strong foundation of achievements and scale up its initiatives while focusing
on the following 4 critical areas that are linked to its business and where it can have the
most impact.
Origins
Pepsi was originally named "Brad's Drink", after its creator, a pharmicist in New Bern,
North Carolina. It was created in the summer of 1893 and was later renamed Pepsi Cola
in 1898, possibly due the digestive enzyme pepsin and kola nuts used in the recipe.
Bradham sought to create a fountain drink that was delicious and would aid in digestion
and boost energy.
Another theory is that Bradham and his customers simply thought the name "Pepsi"
sounded good and reflected the fact that the drink had some kind of "pep" in it because it
was a carbonated drink.
And another theory is that the word Pepsi was chosen because it reflected phonetically
the sound of a can being opened, the sound "pop" "schi", was condensed and simplified
in the name "Pepsi". This theory can be considered folklore only, since at the time of the
naming of the drink, Pepsi was sold in glass bottles and not metal cans; and the pop top
lid producing Pepsi's oddly phonetic sound wouldn't be invented for another forty years.
In 1903, Bradham moved the bottling of Pepsi-Cola from his drugstore into a rented
warehouse. That year, Bradham sold 7,968 gallons of syrup. The next year, Pepsi was
sold in six-ounce bottles, and sales increased to 19,848 gallons. In 1929, Pepsi received
its first logo redesign since the original design of 1905. In 1926, the logo was changed
again. In 1929, automobile race pioneer Barney Oldfield endorsed Pepsi-Cola in
newspaper ads as "A bully drink...refreshing, invigorating, a fine bracer before a race"
In 1931, the Pepsi-Cola Company went bankrupt during the Great Depression- in large
part due to financial losses incurred by speculating on wildly fluctuating sugar prices as a
result of World War I. Assets were sold and Roy C. Megargel bought the Pepsi
trademark. Eight years later, the company went bankrupt again. Pepsi's assets were then
purchased by Charles Guth, the President of Loft Inc. Loft was a candy manufacturer
with retail stores that contained soda fountains. He sought to replace Coca-Cola at his
stores' fountains after Coke refused to give him a discount on syrup. Guth then had
Loft's chemists reformulate the Pepsi-Cola syrup formula.
Rise
During the Great Depression, Pepsi gained popularity following the introduction in 1936
of a 12-ounce bottle. Initially priced at 10 cents, sales were slow, but when the price was
slashed to five cents, sales increased substantially. With a radio advertising campaign
featuring the jingle "Pepsi cola hits the spot / Twelve full ounces, that's a lot / Twice as
much for a nickel, too / Pepsi-Cola is the drink for you," Pepsi encouraged pricewatching
consumers to switch, obliquely referring to the Coca-Cola standard of six
ounces a bottle for the price of five cents (a nickel), instead of the 12 ounces Pepsi sold at
the same price. Coming at a time of economic crisis, the campaign succeeded in boosting
Pepsi's status. In 1936 alone 500,000,000 bottles of Pepsi were consumed. From 1936 to
1938, Pepsi-Cola's profits doubled.
Pepsi's success under Guth came while the Loft Candy business was faltering. Since he
had initially used Loft's finances and facilities to establish the new Pepsi success, the
near-bankrupt Loft Company sued Guth for possession of the Pepsi-Cola company. A
long legal battle, Guth v. Loft, then ensued, with the case reaching the Delaware Supreme
Court and ultimately ending in a loss for Guth.
Marketing
A bottle of Pepsi with its 2003-2008 logo. This Pepsi logo is still used with Pepsi Wild
Cherry, Pepsi ONE, and in many countries.
In 1975, Pepsi introduced the Pepsi Challenge marketing campaign where PepsiCo set up
a blind tasting between Pepsi-Cola and rival Coca-Cola. During these blind taste tests the
majority of participants picked Pepsi as the better tasting of the two soft drinks. PepsiCo
took great advantage of the campaign with television commercials reporting the test
results to the public.
In 1976 Pepsi, RKO Bottlers in Toledo, Ohio hired the first female Pepsi salesperson,
Denise Muck, to coincide with the United States bicentennial celebration.
In 1996, PepsiCo launched the highly successful Pepsi Stuff marketing strategy. By 2002,
the strategy was cited by Promo Magazine as one of 16 "Ageless Wonders" that "helped
redefine promotion marketing."
In 2007, PepsiCo redesigned their cans for the fourteenth time, and for the first time,
included more than thirty different backgrounds on each can, introducing a new
background every three weeks. One of their background designs includes a string of
repetitive numbers 73774. This is a numerical expression from a telephone keypad of the
word "Pepsi."
In late 2008, Pepsi overhauled their entire brand, simultaneously introducing a new logo
and a minimalist label design. The redesign was comparable to Coca-Cola's earlier
simplification of their can and bottle designs. Due to the timing of the new logo release,
some have criticised the logo change, as the new logo looked strikingly similar to the
logo used for Barack Obama's successful presidential campaign, implicating a bias
towards the President. Also in 4th quarter of 2008 Pepsi teamed up with Google/Youtube
to produce the first daily entertainment show on Youtube for Youtube. This daily show
deals with pop culture, internet viral videos, and celebrity gossip. Poptub is refreshed
daily from Pepsi.
Since 2007, Pepsi, Lay's, and Gatorade have had a "Bring Home the Cup™," contest for
Canada's biggest hockey fans. Hockey fans were asked to submit content (videos,
pictures or essays) for a chance at winning a party in their hometown with The Stanley
Cup and Mark Messier.
In 2009, "Bring Home the Cup™," changed to "Team Up and Bring Home the Cup™."
The new installment of the campaign asks for team involvement and an advocate to
submit content on behalf of their team for the chance to have the Stanley Cup delivered to
the team's hometown by Mark Messier.
Bans in India
Pepsi arrived on the black market in India in 1988. In 2003 and again in 2006, the Centre
for Science and Environment (CSE), a non-governmental organization in New Delhi,
claimed that soda drinks produced by manufacturers in India, including both Pepsi and
Coca-Cola, had dangerously high levels of pesticides in their drinks. Both PepsiCo and
The Coca-Cola Company maintain that their drinks are safe for consumption and have
published newspaper advertisements that say pesticide levels in their products are less
than those in other foods such as tea, fruit and dairy products. In the Indian state of
Kerala, sale and production of Pepsi-Cola, along with other soft drinks, were banned in
2006 following partial bans on the drinks in schools, colleges and hospitals in five other
Indian states. On September 22, 2006, the High Court in Kerala overturned the Kerala
ban ruling that only the central government can ban food products.
Rivalry with Coca-Cola
Main article: Cola Wars
According to Consumer Reports, in the 1970s, the rivalry continued to heat up the
market. Pepsi conducted blind taste tests in stores, in what was called the "Pepsi
Challenge". These tests suggested that more consumers preferred the taste of Pepsi
(which is believed to have more lemon oil, less orange oil, and uses vanillin rather than
vanilla) to Coke. The sales of Pepsi started to climb, and Pepsi kicked off the "Challenge"
across the nation. This became known as the "Cola Wars."
8
In 1985, The Coca-Cola Company, amid much publicity, changed its formula. The
theory has been advanced that New Coke, as the reformulated drink came to be known,
was invented specifically in response to the Pepsi Challenge. However, a consumer
backlash led to Coca-Cola quickly introducing a modified version of the original formula
(removing the expensive Haitian lime oil and changing the sweetener to corn syrup) as
Coke "Classic".
In the U.S., Pepsi's total market share was about 31.7 percent in 2004, while Coke's was
about 43.1 percent.
Overall, Coca-Cola continues to outsell Pepsi in almost all areas of the world. However,
exceptions include Saudi Arabia; Pakistan (Pepsi has been a dominant sponsor of the
Pakistan cricket team since the 1990s); the Dominican Republic; the Canadian provinces
of Quebec, Newfoundland and Labrador and Prince Edward Island; and Guatemala..
Pepsi had long been the drink of Canadian Francophones and it continues to hold its
dominance by relying on local Québécois celebrities (especially Claude Meunier, of La
Petite Vie fame) to sell its product. PepsiCo use the slogan "here, it's Pepsi" (Ici, c'est
Pepsi) to answer to Coca-cola publicity "Everywhere in the world, it's Coke" (Partout
dans le monde, c'est Coke).
By most accounts, Coca-Cola was India's leading soft drink until 1977 when it left India
after a new government ordered The Coca-Cola Company to turn over its secret formula
for Coke and dilute its stake in its Indian unit as required by the Foreign Exchange
Regulation Act (FERA). In 1988, PepsiCo gained entry to India by creating a joint
venture with the Punjab government-owned Punjab Agro Industrial Corporation (PAIC)
and Voltas India Limited. This joint venture marketed and sold Lehar Pepsi until 1991
when the use of foreign brands was allowed; PepsiCo bought out its partners and ended
the joint venture in 1994. In 1993, The Coca-Cola Company returned in pursuance of
India's Liberalization policy. In 2005, The Coca-Cola Company and PepsiCo together
held 95% market share of soft-drink sales in India. Coca-Cola India's market share was
52.5%.
A sticker from a USSR-produced Pepsi bottle. The logo shown is a version used from
1973-91.
In Russia, Pepsi initially had a larger market share than Coke but it was undercut once the
Cold War ended. In 1972, Pepsico company struck a barter agreement with the then
government of the Soviet Union, in which Pepsico was granted exportation and Western
marketing rights to Stolichnaya vodka in exchange for importation and Soviet marketing
of Pepsi-Cola. This exchange led to Pepsi-Cola being the first foreign product sanctioned
for sale in the U.S.S.R..
Reminiscent of the way that Coca-Cola became a cultural icon and its global spread
spawned words like "coca colonization", Pepsi-Cola and its relation to the Soviet system
turned it into an icon. In the early 1990s, the term "Pepsi-stroika" began appearing as a
pun on "perestroika", the reform policy of the Soviet Union under Mikhail Gorbachev.
Critics viewed the policy as a lot of fizz without substance and as an attempt to usher in
Western products in deals there with the old elites. Pepsi, as one of the first American
products in the Soviet Union, became a symbol of that relationship and the Soviet policy.
This was reflected in Russian author Victor Pelevin's book "Generation P".
In 1989, Billy Joel mentions the rivalry between the two companies in the song We
Didn't Start The Fire. The line "Rock & Roller Cola Wars" refers to Pepsi and Coke's
usage of various musicians in their advertising campaigns. Coke used Paula Abdul,while
Pepsi used Michael Jackson. They then continued to try to get other musicians to
advertise their beverages. Whilst filming the Pepsi advert Michael Jackson burned his
hair.
In 1992, following the Soviet collapse, Coca-Cola was introduced to the Russian market.
As it came to be associated with the new system, and Pepsi to the old, Coca-Cola rapidly
captured a significant market share that might otherwise have required years to achieve.
By July 2005, Coca-Cola enjoyed a market share of 19.4 percent, followed by Pepsi with
13 percent.
Ingredients
Pepsi-Cola contains basic ingredients found in most other similar drinks including
carbonated water, high fructose corn syrup, sugar, colorings, phosphoric acid, caffeine,
citric acid, and natural flavors. The caffeine-free Pepsi-Cola contains the same
ingredients minus the caffeine.
The original Pepsi-Cola recipe was available from documents filed with the court at the
time that the Pepsi-Cola Company went bankrupt in 1929. The original formula
contained neither cola nor caffeine.
Competitors
· Coca-Cola
· R. C. Cola
Brands Under Pepsico
1. Miranda
2. Slice
3. Mountain Dew
4. 7 Up
About Miranda
Mirinda is a brand of soft drink available in fruit varieties including orange. A "citrus"
flavour is also available in certain areas of the Middle East. It is part of a beverage area
often referred to as the flavor segment, comprising carbonated and non-carbonated
fruitflavored
beverages. The orange flavor of Mirinda represents the majority of Mirinda sales
worldwide.
Mirinda is owned by PepsiCo and is primarily commercialized outside of North America.
It competes with Coca-Cola's Fanta and Cadbury-Schweppes's Orange Crush brand, with
flavor brands local to individual countries. As with most soft drinks, Mirinda is available
in multiple formulations depending on the taste of individual markets.
History
Mirinda was originally produced in Spain.
It became available in the United States in late 2003 in bilingual packaging, and initially
sold at a reduced price, presumably to become a competitor against Coca-Cola's Fanta
brand. Since 2005, Mirinda flavors have largely been sold under the Tropicana Twister
Soda brand in the United States except in Guam, where Pepsi began selling it under the
Mirinda brand in 2007 (replacing Chamorro Punch Orange). Pepsico also tried to sell
Mirinda in Brazil in late 1996, but the brand was discontinued in 1997 after weak sales,
keeping the local brand Sukita under production.
Recent events
Mirinda campaigns over the years have included the Mirinda Woman campaign in the
1970s and a campaign in the 1994-1996 time frame with a campaign using the tag-line
11
'The Taste is in Mirinda' with the Blue Man Group. In some markets, including
Mexico, the Blue Man Group campaign re-launched Mirinda away from a multi-flavor
positioning to a brand solely focused on the orange flavor. The Blue Man Group
campaign showed the Blue Man Group competing to drink orange Mirinda and
celebrating a successful drink with an open-mouth exclamation of 'Mirindaaaa'. Also in
this same country Mirinda launch a campaign with the Pokémon anime series to the
children with a promotion of many gadgets with the characters of the manga series.
A recent, highly successful advertising campaign was launched in India featuring a
handsome young gentleman, Stefan Persson, gallivanting about town in hunt of his sweet
sweet Mirinda. Stefan's credible portrayal of the Mirinda-obsessed youth earned the
campaign accolades in Brand Equity, the advertising section of a leading financial
newspaper.
Mirinda advertising campaigns over the last fifteen years have been handled by Pepsi's
stable of creative agencies, including BBDO and J Walter Thompson.
Mirinda also regularly introduces special movie-themed editions in Asia. Recent ones
included Batman (Blueberry) and Superman (Fruit punch). Mirinda has also recently
released a new flavour of drinks called Mirinda Sorbet. They come in two flavours:
Raspberry and Lime.
Facts
Pepsi and Mirinda (orange flavor) with Arabic labels (bottled, left to right).
· Mirinda is available in most continents of the world with other PepsiCo products.
It is also in the Middle Eastern markets, but the name is commonly
mispronounced as "Miranda" due to its Arabic spelling.
· The name "Mirinda" means "amazing" in Esperanto. There is a claim that the
original manufacturer of Mirinda, which later sold the brand to PepsiCo, was an
Esperanto-speaking individual.
· Spanish-speaking consumers may also associate it with merienda or afternoon
(teatime) snack.
· Mirinda's primary formulation is as an artificially flavored beverage; however, it
has been produced in the past with a percentage of fruit juice, usually due to local
tax benefits tied to non-artificial juice ingredients.
12
· Mirinda was sold in a distinctive ribbed glass bottle in Australia and parts of
Southeast Asia, when originally released there.
· Mirindas asesinas ("Killer Mirindas") was the first short film of the Spanish
filmmaker Álex de la Iglesia
About Slice
Slice is a line of fruit-flavored soft drinks manufactured by PepsiCo and introduced in
1984, with the lemon-lime flavor replacing Teem.
Varieties of Slice have included Apple, Fruit Punch, Grape, Passionfruit, Peach,
Mandarin Orange, Pineapple, Strawberry, Cherry Cola, "Red", Cherry-Lime, and Dr
Slice. Originally, the drink was known for containing 10% fruit juice, but that was
discontinued by 1994.
The original design of the can was a solid color, related to the flavor of the drink. These
were replaced around 1994 with black cans, with a colorful burst (once again, related to
the flavor of the drink), along with slicker graphics. Around 1997, the cans became blue
with color-coordinated swirls. The original orange flavor was reformulated at this time
with an infiltration marketing campaign led by Danieli. The new flavor's slogan was "it's
orange, only twisted." Orange Slice has since been changed back to its original flavor.
Lemon Lime Slice was replaced by Sierra Mist in most markets in the summer of 2000.
Sierra Mist became a national brand in 2003. The rest of the Slice line was replaced in
most markets by Tropicana Twister Soda in the summer of 2005, although the Dr Slice
variety can still be found in some fountains. It has been discontinued in more and more
markets though.
In early 2006, the Slice name was resurrected for a new line of diet sodas from Pepsi,
called Slice ONE. Initially, Slice ONE was available exclusively at Wal-Mart stores, in
orange, grape, and berry flavors. All three flavors are sweetened with Splenda.
In 2009 Slice (Orange, Diet Orange, Grape, Strawberry, Peach) will be sold only in WalMart Stores.
About Mountain Dew
Mountain Dew (also known as Mtn Dew as of late 2008) is a soft drink distributed and
manufactured by PepsiCo. The main formula was invented in Knoxville, Tennessee,
named and first marketed in Knoxville and Johnson City, TN in the 1940s, then by
Barney and Ally Hartman, in Fayetteville, North Carolina and across the United States in
1964. When removed from its characteristic green bottle, Mountain Dew is bright
yellowgreen
and translucent.
As of 2007, Mountain Dew was the fourth-best-selling carbonated soft drink in the
United States, behind only Coca-Cola Classic, Pepsi-Cola, and Diet Coke. Diet Mountain
Dew ranked ninth in sales in the same year.
On October 15, 2008, it was announced that Pepsi would be redesigning their logos and
re-branding many of their core products by the end of 2008. At the same time they
registered the name "mtn dew" and a related logo with the United States Patent and
Trademark Office. This also announced the re-launch of Mountain Dew in the UK, which
was released by Pepsi in 1996 but was dropped in 1998 due to low sales.
As of April 2009, the flavors "Code Red" and "Live Wire" continue to use the previous
Mountain Dew design.
Ingredients
Mountain Dew lists its ingredients as:
· Carbonated water
· Sugar (replaced by High fructose corn syrup (HFCS) in much of the United
States)
· Concentrated orange juice
· Citric acid
· Natural flavors
· Sodium benzoate (preserves freshness)
· Caffeine (54 mg per 12 US fluid ounces (350 ml))
Mountain Dew (also known as Mtn Dew as of late 2008) is a soft drink distributed and
manufactured by PepsiCo. The main formula was invented in Knoxville, Tennessee,
named and first marketed in Knoxville and Johnson City, TN in the 1940s, then by
Barney and Ally Hartman, in Fayetteville, North Carolina and across the United States in
1964. When removed from its characteristic green bottle, Mountain Dew is bright
yellowgreen
and translucent.
As of 2007, Mountain Dew was the fourth-best-selling carbonated soft drink in the
United States, behind only Coca-Cola Classic, Pepsi-Cola, and Diet Coke. Diet Mountain
Dew ranked ninth in sales in the same year.
On October 15, 2008, it was announced that Pepsi would be redesigning their logos and
re-branding many of their core products by the end of 2008. At the same time they
registered the name "mtn dew" and a related logo with the United States Patent and
Trademark Office. This also announced the re-launch of Mountain Dew in the UK, which
was released by Pepsi in 1996 but was dropped in 1998 due to low sales.
As of April 2009, the flavors "Code Red" and "Live Wire" continue to use the previous
Mountain Dew design.
Ingredients
Mountain Dew lists its ingredients as:
· Carbonated water
· Sugar (replaced by High fructose corn syrup (HFCS) in much of the United
States)
· Concentrated orange juice
· Citric acid
· Natural flavors
· Sodium benzoate (preserves freshness)
· Caffeine (54 mg per 12 US fluid ounces (350 ml))
· Sodium citrate
· Erythorbic acid (preserves freshness)
· Gum arabic
· Calcium disodium EDTA (to protect flavor)
· Brominated vegetable oil
· Thiamin hydrochloride
About 7 UP
7 Up is a brand of a lemon-lime flavored non-caffeinated soft drink. The rights to the
brand are held by Dr Pepper Snapple Group in the United States, and PepsiCo (or its
licensees) in the rest of the world. The 7 Up logo includes a red spot between the '7' and
'Up'; this red spot has been animated and used as a mascot for the brand as Cool Spot.
Name
According to Professor Donald Sadoway (MIT) the name is derived from the atomic
mass of Lithium, 7, which was originally one of the key ingredients of the drink (as
lithium citrate).
However, there are numerous myths explaining the name. One popular myth is that its
creator named the soft drink after seeing a cattle brand with the number 7 and the letter
U. Other theories suggest that the drink was formulated with seven flavors plus the
bubbles from the drink's carbonation (the bubbles go up). Other ideas include the original
bottle contained seven ounces; its creator came up with the name while playing dice; that
it was the 7th large commercial lemonade brand that tasted the same. Another rumor has
it that the name was created because the company had previously failed six times, hence
the name "7 Up". Before the formula change in 2006, a can of 7 Up included seven
ingredients. The "Up" in the drink's name might refer to the original inclusion of lithium
citrate, when it was marketed as a patent medicine to cure hangovers.
Some people mistakenly believe that the name 7 Up comes from the belief that its pH is
7.0 and therefore neutral. This is not the case at all: the pH of 7 Up is comparable to
many other soft drinks. At a pH of 3.67, Diet 7 Up is less acidic than lemon juice (pH
2.3), vinegar (pH 2.9) or wine (pH 3.5).
History
7 Up was created by Charles Leiper Grigg who launched his St. Louis-based company
The Howdy Corporation in 1920. Grigg came up with the formula for a lemon-lime soft
drink in 1929. The product, originally named "Bib-Label Lithiated Lemon-Lime Soda",
was launched two weeks before the Wall Street Crash of 1929. It contained lithium
citrate, a mood-stabilizing drug. It was one of a number of patent medicine products
popular in the late-19th and early-20th centuries; they made claims similar to today's
health foods. Specifically it was marketed as a hangover cure. The product's name was
soon changed to 7 Up.
The Great Depression was just the beginning of the business challenges the product
would face. In its early years, there were around 600 lemon-lime beverage brands being
sold in the US. 7 Up was able to survive and become the market leader in the category by
being one of the first to be nationally distributed as well as being marketed as more
healthy than other soft drinks.
The success of 7 Up led Grigg to rename his company to "The Seven Up Company" in
1936.
Lithium citrate was removed from 7 Up's formula in 1950.
Expanding the brand beyond a niche market, major competitors began to set their sights
on it such as The Coca-Cola Company with its Sprite brand introduced in 1961. Sprite
would not challenge 7 Up's position seriously until the 1980s when Coke forced its major
bottlers, then distributing 7 Up, to drop the beverage in deference to Sprite. 7 Up
challenged Coke's actions in court as "anti-competitive", a challenge they eventually lost.
Formula
7 Up has been reformulated several times since its launch in 1929. In 2006, the version of
the product sold in the U.S. was re-formulated so that it could be marketed as being
"100% Natural". This was achieved by eliminating the preservative calcium disodium
EDTA, and replacing sodium citrate with potassium citrate in order to reduce the
beverage's sodium content. This re-formulation contains no fruit juice and is still
sweetened with high fructose corn syrup (HFCS). The manufacturing process used in the
production of HFCS has led some public health and special interest groups to challenge
the ad campaign's "natural" claims. In 2007, after the Center for Science in the Public
Interest threatened to sue 7 Up, it was announced that 7 Up would stop being marketed as
"100% natural". Instead, It is now promoted as having "100% Natural Flavors". The
controversy does not extend to other countries, such as the United Kingdom, where high
fructose corn syrup is not generally used in foods, including 7 Up.
1. Customer Desired Benefits : Pepsi has been successful in capturing the Youth Spirit.It
has also ventured out to different customer segments with different offering for e.g. Diet
Pepsi was introduced to cater to the health conscious people. Pepsi’s entire Product Portfolio
caters to the different customer segments.
2. Relevance : It’s my can offering is considered to be a new generation drink, the drink has
managed to grab the imagination of Teens and young Adults alike. Pepsi through the
combination of innovative ideas (like Pepsi Blue even though a failure), effective
communication and aggressive advertising has been able to stay relevant to its customers.
3. Pricing is based on consumer’s perception of Value : The Price are primarily market
determined in case of soft drinks. But Pepsi never got involved in a price war with coke as it
would have eaten into the brand equity of Pepsi as consumers perceive that the basic price
they pay for brands like Pepsi is justified as its more about the refreshing cola experience
rather than a just a thirst quencher.
4. Brand positioning : Pepsi’s Brand positioning has always been as a refreshing cola drink
for the youth, ubiquitous on just about every social occasion. The positioning has remained
same since its inception in 1898. The brand positioning was prompted primarily by the
market segments largely untapped by coca cola (young generation) and its sweet sugary taste
suited for its young consumers. Thus it was able to create a Point of difference from Coca
cola.
5. Consistency : Pepsi has maintained continuity in its brand image and has been consistent
in its brand promise of refreshing drink for Youth. It has always depicted a defying attitude
and continued to challenge the market leader (Coca cola even though not in India) Its
campaign have been about making a mark.
6. Brand Portfolio and hierarchy : Pepsico’s brand portfolio in the beverage market
includes Gatorade, 7UP, Aquafina, Mirinda, Mountain Dew, Nimbooz, Tropicana, Slice and
finally Pepsi. All these brands cater to different market segments and rarely cannibalize each
others sales. It also gives Pepsico optimum market coverage. 7. Repertoire of marketing
Activity : Pepsi’s Brand Elements are distinctive and the depth and breadth of awareness is
very high. It has an extensive distribution network from super markets in metros to Mom and
Pop shops in the interior heartland of the country. Promotional campaign have also been
innovative and the usage of social media like Facebook’s Pepsi photography contest and
internet campaigns like ‘Change the Game’ have been phenomenal.
8. Internal Branding : Pepsi’s give it brand manager the liberty to experiment as we can see
Geetu Verma’s (VP-Innovation) idea to capture the next tier of customers at the bottom of the
pyramid was received with great enthusiasm by the Company. Pepsi also has predefined set
of rules that brand manager should follow which is meant to develop a sense of ownership for
the brand.
9. Sustainable and support marketing programs : Pepsi marketing team is probably the
most innovative team when it come to determining go to market strategy for its product. The
company’s marketing expenditures are very high. 10. Monitoring Sources of Brand Equity :
Pepsi has a series of monitoring programs like periodic brand audit, routine brand sales
tracking, monitoring brand performance, etc.
4
BRAND EQUITY OF PEPSICO:
Building and properly managing brand equity has become a priority for companies of all
sizes in all types of industries, in all types of markets.After all, from strong brand equity flow
customer loyalty and profits. The rewards of having a strong brand are clear. The problem is,
few managers are able to step back and assess their brand’s particular strengths and
weaknesses objectively. Most have a good sense of one or two areas in which their brand
may excel or may need help. But if pressed, many (understandably) would find it difficult
even to identify all of the factors they should be considering. When you’re im-mersed in the
day-to-day management of a brand, it’s not easy to keep in perspective all the parts that affect
the whole. In this article, I’ll identify the ten characteristics that the world’s strongest brands
share and construct a brand report card – a systematic way for managers to think about how
to grade their brand’s performance for each of those characteristics. The report card can help
you identify areas that need improvement, recog-nize areas in which your brand is strong, and
learn more about how your particular brand is configured. Constructing similar report cards
for your com-petitors can give you a clearer picture of their strengths and weaknesses. One
caveat: Identifying weak spots for your brand doesn’t necessarily mean identifying areas that
need more attention. Decisions that might seem straightforward – “We haven’t paid much
attention to innovation: let’s direct more resources toward R&D” – can sometimes prove to
be serious mistakes if they undermine another characteristic that custom- ers value more.
4.1
THE TOP TEN TRAITS
The world’s strongest brands share these ten attributes:
1. The brand excels at delivering the benefits customers truly desire. Why do customers
really buy a prod-uct? Not because the product is a collection of attributes but because those
attributes, together with the brand’s image, the service, and many other tangible and
intangible factors, create an attractive whole. In some cases, the whole isn’t even some- thing
that customers know or can say they want.
Consider Starbucks. It’s not just a cup of coffee. In 1983, Starbucks was a small Seattle-area
coffee retailer. Then while on vacation in Italy, Howard Schultz, now Starbucks chairman,
was inspired by the ro-mance and the sense of community he felt in Italian coffee bars and
cof- fee houses. The culture grabbed him, and he saw an opportunity.
“It seemed so obvious,” Schultz says in the 1997 book he wrote with Dori Jones Yang, Pour
Your Heart Into It. “Starbucks sold great coffee beans, but we didn’t serve coffee by the cup.
We treated coffee as pro-Kevinduce, something to be bagged and sent home with the
groceries. We stayed one big step away from the heart and soul of what coffee has meant
throughout centuries.”
And so Starbucks began to focus its efforts on building a coffee bar culture, opening coffee
houses like those in Italy. Just as important, the company maintained control over the coffee
from start to finish – from the selection and procurement of the beans to their roasting and
blending to their ultimate consumption. The extreme vertical integration has paid off.
Starbucks locations thus far have successfully delivered superior bene- fits to customers by
appealing to all five senses – through the enticing aroma of the beans, the rich taste of the
coffee, the product displays and attractive artwork adorning the walls, the contemporary
music play-ing in the background, and even the cozy, clean feel of the tables and chairs. The
company’s startling suc-cess is evident: The average Star-bucks customer visits a store
18times a month and spends $3.50 a visit. The company’s sales and prof-its have each grown
more than 50% annually through much of the 1990s.
2. The brand stays relevant. In strong brands, brand equity is tied both to the actual quality
of the prod-uct or service and to various intangi-ble factors. Those intangibles include “user
imagery” (the type of personwho uses the brand); “usage imagery” (the type of situations in
which the brand is used); the type of personality the brand portrays (sincere, exciting,
competent, rugged); the feeling that the brand tries to elicit in customers (purposeful, warm);
and the type of relationship it seeks to build with its customers (committed, casual, seasonal). Without losing sight of their core strengths, the strongest brands stay on the leading
edge in the prod-uct arena and tweak their intangi-bles to fit the times.
Gillette, for example, pours mil- lions of dollars into R&D to ensure that its razor blades are
as technolog-ically advanced as possible, calling attention to major advances through
subbrands (Trac II, Atra, Sensor, Mach3) and signaling minor im- provements with modifiers
(Atra score
The brand excels at delivering the benefits customers truly desire. Have you attempted to
uncover unmet consumer needs and wants? By what methods? Do you focus relentlessly on
maximizing your customers’ product and service experiences? Do you have a system in place
for getting comments from customers to the people who can effect change?
The brand makes use of and coordinates a full repertoire of marketing activities to build
equity. Have you chosen or designed your brand name, logo, symbol, slogan, packaging,
signage, and so forth to maximize brand awareness? Have you implemented integrated push
and pull marketing activities that target both distributors and customers? Are you aware of all
the marketing activities that involve your brand?
Are the people managing each activity aware of one another? Have you capitalized on the
unique capabili-ties of each communication option while ensuring that the meaning of the
brand is consistently represented?
The brand’s managers understand what the brand means to consumers.
Do you know what customers like and don’t like about a brand? Are you aware of all the core
associationspeople make with your brand, whether intentionally created by your company or
not? Have you created detailed, research-driven portraits of your target customers? Have you
outlined customer-driven boundaries for brand extensions and guidelines for
marketing programs?
The brand is given proper support, and that support is sustained over the long run. Are
the successes or failures of marketing programs fully understood before they are changed? Is
the brand given sufficient R&D support? Have you avoided the temptation to cut back
marketing support for the brand in reaction to a downturn in the market or a slump in sales?
The brand stays relevant. Have you invested in product improvements that provide better
value for your customers? Are you in touch with your customers’ tastes? With the current
market conditions? With new trends as they apply to your offering? Are your marketing
decisions based on your knowledge of the above?
The pricing strategy is based on consumers’ perceptions of value. Have you optimized
price, cost, and quality to meet or exceed customers’ expectations? Do you have a system in
place to monitor customers’ perceptions of your brand’s value? Have you estimated how
much value your customers believe the brand adds to your product?
The brand is properly positioned. Have you established necessary and competitive points
of parity with competitors? Have you established desirable and deliverable points of
difference?
The brand is consistent. Are you sure that your marketing programs are not sending
conflicting messages and that they haven’t done so over time? Conversely, are you adjusting
your programs to keep current?
The brand portfolio and hierarchy make sense. Can the corporate brand create a
seamless umbrella for all the brands in the portfolio? Do the brands in that portfolio hold
individual niches? How extensively do the brands overlap? In what areas? Conversely, do the
brands maximize market coverage? Do you have a brand hierarchy that is well thought out
and well understood?
PepsiCo In India
PepsiCo entered India in 1989 and has grown to become one of the country’s leading food
and beverage companies. One of the largest multinational investors in the country, PepsiCo
has established a business which aims to serve the long term dynamic needs of consumers in
India.
PepsiCo India and its partners have invested more than U.S.$1 billion since the company was
established in the country. PepsiCo provides direct and indirect employment to
150,000 people including suppliers and distributors.
PepsiCo nourishes consumers with a range of products from treats to healthy eats, that deliver
joy as well as nutrition and always, good taste. PepsiCo India’s expansive portfolio includes
iconic refreshment beverages Pepsi, 7 UP, Mirinda and Mountain Dew, in addition to low
calorie options such as Diet Pepsi, hydrating and nutritional beverages such as Aquafina
drinking water, isotonic sports drinks - Gatorade, Tropicana100% fruit juices, and juice based
drinks – Tropicana Nectars, Tropicana Twister and Slice. Local brands – Lehar Evervess
Soda, Dukes Lemonade and Mangola add to the diverse range of brands.
PepsiCo’s foods company, Frito-Lay, is the leader in the branded salty snack market and all
Frito Lay products are free of trans-fat and MSG. It manufactures Lay’s Potato Chips,
Cheetos extruded snacks, Uncle Chipps and traditional snacks under the Kurkure and Lehar
brands. The company’s high fibre breakfast cereal, Quaker Oats, and low fat and roasted
snack options enhance the healthful choices available to consumers. Frito Lay’s core
products, Lay’s, Kurkure, Uncle Chipps and Cheetos are cooked in Rice Bran Oil to
significantly reduce saturated fats and all of its products contain voluntary nutritional labeling
on their packets.
The group has built an expansive beverage and foods business. To support its operations,
PepsiCo has 43 bottling plants in India, of which 15 are company owned and 28 are
franchisee owned. In addition to this, PepsiCo’s Frito Lay foods division has 3 state-ofthe- art
plants. PepsiCo’s business is based on its sustainability vision of making tomorrow better
than today. PepsiCo’s commitment to living by this vision every day is visible in its
contribution to the country, consumers and farmers.
PepsiCo’s global commitment to Performance with Purpose
PepsiCo believes that its performance is fundamentally connected to its purpose agenda
which represents the commitment to give back as the company grows. It is a continuing
journey that spans three major areas of focus – human, environmental and talent
sustainability.
Human Sustainability reflects PepsiCo’s goal of nourishing consumers with products that
range from treats to healthy eats. PepsiCo’s products have always offered consumers
nutrition as well as great taste. The progress that PepsiCo has made under the Human
Sustainability pillar includes reformulating some of its products to improve their
nutritional profile while launching products that reflect consumer demand for healthier
nutritious snacks and beverages. PepsiCo partners with Governments, health officials and
Non Governmental Organisations to help address obesity concerns and it continues to
provide consumers with new product choices and innovations.
Environmental Sustainability is based on PepsiCo’s commitment to strive to replenish the
resources used where possible, and minimize the impact on the environment. PepsiCo
continues to work to further reduce its water and electricity consumption and improve its
packaging sustainability. Across the world, PepsiCo has re-used water from its
processing plants and has worked with local communities to provide access to clean
water, while supporting farmers to deliver “more crop per drop.”
Talent Sustainability is founded on PepsiCo’s belief that cherishing its extraordinary
group of people is crucial to building an empowered workforce. PepsiCo pursues
diversity and creates an inclusive environment which encourages associates to bring their
whole selves to work. PepsiCo has increased female and minority representation in the
management ranks and has encouraged employees to participate in community service
activities while continuing to create rewarding job opportunities for people with different
abilities.
Together, PepsiCo associates across the world are building on the platform of Human,
Environment and Talent Sustainability, while delivering great financial results.
PepsiCo India’s Performance With Purpose
To deliver on the commitment of Performance With Purpose, PepsiCo India continues to
build on its strong foundation of achievements and scale up its initiatives while focusing
on the following 4 critical areas that are linked to its business and where it can have the
most impact.
Pepsi is a soft drink that is produced and manufactured by PepsiCo. It is sold in retail
stores, restaurants, cinemas and from vending machines. The drink was first made in the
1890s by pharmacist Caleb Bradham in New Bern, North Carolina. The brand was
trademarked on June 16, 1903. There have been many Pepsi variants produced over the
years since 1898, including Diet Pepsi, Crystal Pepsi, Pepsi Twist, Pepsi Max, Pepsi
Free, Pepsi AM, Pepsi Samba, Pepsi Blue, Pepsi Gold, Pepsi Holiday Spice, Pepsi Jazz,
Vanilla Pepsi, Pepsi X (available in Finland and Brazil), Pepsi Next (available in Japan
and South Korea), Pepsi Raw, Pepsi Retro in Mexico, Pepsi One, Pepsi Ice Cucumber
and Pepsi White in Japan.
In October 2008, Pepsi announced they would be redesigning its logo and re-branding
many of its products by early 2009. In 2009, Pepsi, Diet Pepsi and Pepsi Max began
using all lower-case fonts for name brands, and Diet Pepsi Max was re-branded as Pepsi
Max. The brand's blue and red globe trademark became a series of "smiles," with the
central white band arcing at different angles depending on the product. As of January
2009, Pepsi's newer logos have only been adopted in the United States. Currently, Pepsi
Wild Cherry and Pepsi ONE are the only two products that still use their previous design.
Diet Pepsi Wild Cherry, Diet Pepsi Lime, and Diet Pepsi Vanilla received the redesign.
Origins:
Pepsi was originally named "Brad's Drink", after its creator, a pharmicist in New Bern,
North Carolina. It was created in the summer of 1893 and was later renamed Pepsi Cola
in 1898, possibly due the digestive enzyme pepsin and kola nuts used in the recipe.
Bradham sought to create a fountain drink that was delicious and would aid in digestion
and boost energy.
Another theory is that Bradham and his customers simply thought the name "Pepsi"
sounded good and reflected the fact that the drink had some kind of "pep" in it because it
was a carbonated drink.
And another theory is that the word Pepsi was chosen because it reflected phonetically
the sound of a can being opened, the sound "pop" "schi", was condensed and simplified
in the name "Pepsi". This theory can be considered folklore only, since at the time of the
naming of the drink, Pepsi was sold in glass bottles and not metal cans; and the pop top
lid producing Pepsi's oddly phonetic sound wouldn't be invented for another forty years.
In 1903, Bradham moved the bottling of Pepsi-Cola from his drugstore into a rented
warehouse. That year, Bradham sold 7,968 gallons of syrup. The next year, Pepsi was
sold in six-ounce bottles, and sales increased to 19,848 gallons. In 1929, Pepsi received
its first logo redesign since the original design of 1905. In 1926, the logo was changed
again. In 1929, automobile race pioneer Barney Oldfield endorsed Pepsi-Cola in
newspaper ads as "A bully drink...refreshing, invigorating, a fine bracer before a race"
In 1931, the Pepsi-Cola Company went bankrupt during the Great Depression- in large
part due to financial losses incurred by speculating on wildly fluctuating sugar prices as a
result of World War I. Assets were sold and Roy C. Megargel bought the Pepsi
trademark. Eight years later, the company went bankrupt again. Pepsi's assets were then
purchased by Charles Guth, the President of Loft Inc. Loft was a candy manufacturer
with retail stores that contained soda fountains. He sought to replace Coca-Cola at his
stores' fountains after Coke refused to give him a discount on syrup. Guth then had
Loft's chemists reformulate the Pepsi-Cola syrup formula.
Rise:
During the Great Depression, Pepsi gained popularity following the introduction in 1936
of a 12-ounce bottle. Initially priced at 10 cents, sales were slow, but when the price was
slashed to five cents, sales increased substantially. With a radio advertising campaign
featuring the jingle "Pepsi cola hits the spot / Twelve full ounces, that's a lot / Twice as
much for a nickel, too / Pepsi-Cola is the drink for you," Pepsi encouraged pricewatching
consumers to switch, obliquely referring to the Coca-Cola standard of six
ounces a bottle for the price of five cents (a nickel), instead of the 12 ounces Pepsi sold at
the same price. Coming at a time of economic crisis, the campaign succeeded in boosting
Pepsi's status. In 1936 alone 500,000,000 bottles of Pepsi were consumed. From 1936 to
1938, Pepsi-Cola's profits doubled.
Pepsi's success under Guth came while the Loft Candy business was faltering. Since he
had initially used Loft's finances and facilities to establish the new Pepsi success, the
near-bankrupt Loft Company sued Guth for possession of the Pepsi-Cola company. A
long legal battle, Guth v. Loft, then ensued, with the case reaching the Delaware Supreme
Court and ultimately ending in a loss for Guth.
Marketing:
A bottle of Pepsi with its 2003-2008 logo. This Pepsi logo is still used with Pepsi Wild
Cherry, Pepsi ONE, and in many countries.
In 1975, Pepsi introduced the Pepsi Challenge marketing campaign where PepsiCo set up
a blind tasting between Pepsi-Cola and rival Coca-Cola. During these blind taste tests the
majority of participants picked Pepsi as the better tasting of the two soft drinks. PepsiCo
took great advantage of the campaign with television commercials reporting the test
results to the public.
In 1976 Pepsi, RKO Bottlers in Toledo, Ohio hired the first female Pepsi salesperson,
Denise Muck, to coincide with the United States bicentennial celebration.
In 1996, PepsiCo launched the highly successful Pepsi Stuff marketing strategy. By 2002,
the strategy was cited by Promo Magazine as one of 16 "Ageless Wonders" that "helped
redefine promotion marketing."
In 2007, PepsiCo redesigned their cans for the fourteenth time, and for the first time,
included more than thirty different backgrounds on each can, introducing a new
background every three weeks. One of their background designs includes a string of
repetitive numbers 73774. This is a numerical expression from a telephone keypad of the
word "Pepsi."
In late 2008, Pepsi overhauled their entire brand, simultaneously introducing a new logo
and a minimalist label design. The redesign was comparable to Coca-Cola's earlier
simplification of their can and bottle designs. Due to the timing of the new logo release,
some have criticised the logo change, as the new logo looked strikingly similar to the
logo used for Barack Obama's successful presidential campaign, implicating a bias
towards the President. Also in 4th quarter of 2008 Pepsi teamed up with Google/Youtube
to produce the first daily entertainment show on Youtube for Youtube. This daily show
deals with pop culture, internet viral videos, and celebrity gossip. Poptub is refreshed
daily from Pepsi.
Since 2007, Pepsi, Lay's, and Gatorade have had a "Bring Home the Cup™," contest for
Canada's biggest hockey fans. Hockey fans were asked to submit content (videos,
pictures or essays) for a chance at winning a party in their hometown with The Stanley
Cup and Mark Messier.
In 2009, "Bring Home the Cup™," changed to "Team Up and Bring Home the Cup™."
The new installment of the campaign asks for team involvement and an advocate to
submit content on behalf of their team for the chance to have the Stanley Cup delivered to
the team's hometown by Mark Messier.
Bans in India:
Pepsi arrived on the black market in India in 1988. In 2003 and again in 2006, the Centre
for Science and Environment (CSE), a non-governmental organization in New Delhi,
claimed that soda drinks produced by manufacturers in India, including both Pepsi and
Coca-Cola, had dangerously high levels of pesticides in their drinks. Both PepsiCo and
The Coca-Cola Company maintain that their drinks are safe for consumption and have
published newspaper advertisements that say pesticide levels in their products are less
than those in other foods such as tea, fruit and dairy products. In the Indian state of
Kerala, sale and production of Pepsi-Cola, along with other soft drinks, were banned in
2006 following partial bans on the drinks in schools, colleges and hospitals in five other
Indian states. On September 22, 2006, the High Court in Kerala overturned the Kerala
ban ruling that only the central government can ban food products.
Rivalry with Coca-Cola:
According to Consumer Reports, in the 1970s, the rivalry continued to heat up the
market. Pepsi conducted blind taste tests in stores, in what was called the "Pepsi
Challenge". These tests suggested that more consumers preferred the taste of Pepsi
(which is believed to have more lemon oil, less orange oil, and uses vanillin rather than
vanilla) to Coke. The sales of Pepsi started to climb, and Pepsi kicked off the "Challenge"
across the nation. This became known as the "Cola Wars."
In 1985, The Coca-Cola Company, amid much publicity, changed its formula. The
theory has been advanced that New Coke, as the reformulated drink came to be known,
was invented specifically in response to the Pepsi Challenge. However, a consumer
backlash led to Coca-Cola quickly introducing a modified version of the original formula
(removing the expensive Haitian lime oil and changing the sweetener to corn syrup) as
Coke "Classic".
In the U.S., Pepsi's total market share was about 31.7 percent in 2004, while Coke's was
about 43.1 percent.
Overall, Coca-Cola continues to outsell Pepsi in almost all areas of the world. However,
exceptions include Saudi Arabia; Pakistan (Pepsi has been a dominant sponsor of the
Pakistan cricket team since the 1990s); the Dominican Republic; the Canadian provinces
of Quebec, Newfoundland and Labrador and Prince Edward Island; and Guatemala..
Pepsi had long been the drink of Canadian Francophones and it continues to hold its
dominance by relying on local Québécois celebrities (especially Claude Meunier, of La
Petite Vie fame) to sell its product. PepsiCo use the slogan "here, it's Pepsi" (Ici, c'est
Pepsi) to answer to Coca-cola publicity "Everywhere in the world, it's Coke" (Partout
dans le monde, c'est Coke).
By most accounts, Coca-Cola was India's leading soft drink until 1977 when it left India
after a new government ordered The Coca-Cola Company to turn over its secret formula
for Coke and dilute its stake in its Indian unit as required by the Foreign Exchange
Regulation Act (FERA). In 1988, PepsiCo gained entry to India by creating a joint
venture with the Punjab government-owned Punjab Agro Industrial Corporation (PAIC)
and Voltas India Limited. This joint venture marketed and sold Lehar Pepsi until 1991
when the use of foreign brands was allowed; PepsiCo bought out its partners and ended
the joint venture in 1994. In 1993, The Coca-Cola Company returned in pursuance of
India's Liberalization policy. In 2005, The Coca-Cola Company and PepsiCo together
held 95% market share of soft-drink sales in India. Coca-Cola India's market share was
52.5%.
In Russia, Pepsi initially had a larger market share than Coke but it was undercut once the
Cold War ended. In 1972, Pepsico company struck a barter agreement with the then
government of the Soviet Union, in which Pepsico was granted exportation and Western
marketing rights to Stolichnaya vodka in exchange for importation and Soviet marketing
of Pepsi-Cola. This exchange led to Pepsi-Cola being the first foreign product sanctioned
for sale in the U.S.S.R..
Reminiscent of the way that Coca-Cola became a cultural icon and its global spread
spawned words like "coca colonization", Pepsi-Cola and its relation to the Soviet system
turned it into an icon. In the early 1990s, the term "Pepsi-stroika" began appearing as a
pun on "perestroika", the reform policy of the Soviet Union under Mikhail Gorbachev.
Critics viewed the policy as a lot of fizz without substance and as an attempt to usher in
Western products in deals there with the old elites. Pepsi, as one of the first American
products in the Soviet Union, became a symbol of that relationship and the Soviet policy.
This was reflected in Russian author Victor Pelevin's book "Generation P".
In 1989, Billy Joel mentions the rivalry between the two companies in the song We
Didn't Start The Fire. The line "Rock & Roller Cola Wars" refers to Pepsi and Coke's
usage of various musicians in their advertising campaigns. Coke used Paula Abdul,while
Pepsi used Michael Jackson. They then continued to try to get other musicians to
advertise their beverages. Whilst filming the Pepsi advert Michael Jackson burned his
hair.
In 1992, following the Soviet collapse, Coca-Cola was introduced to the Russian market.
As it came to be associated with the new system, and Pepsi to the old, Coca-Cola rapidly
captured a significant market share that might otherwise have required years to achieve.
By July 2005, Coca-Cola enjoyed a market share of 19.4 percent, followed by Pepsi with
13 percent.
Ingredients:
Pepsi-Cola contains basic ingredients found in most other similar drinks including
carbonated water, high fructose corn syrup, sugar, colorings, phosphoric acid, caffeine,
citric acid, and natural flavors. The caffeine-free Pepsi-Cola contains the same
ingredients minus the caffeine.
The original Pepsi-Cola recipe was available from documents filed with the court at the
time that the Pepsi-Cola Company went bankrupt in 1929. The original formula
contained neither cola nor caffeine.
Brands Under Pepsico:
1. Miranda
2. Slice
3. Mountain Dew
4. 7 Up
About Miranda:
Mirinda is a brand of soft drink available in fruit varieties including orange. A "citrus"
flavour is also available in certain areas of the Middle East. It is part of a beverage area
often referred to as the flavor segment, comprising carbonated and non-carbonated
fruitflavored
beverages. The orange flavor of Mirinda represents the majority of Mirinda sales
worldwide.
Mirinda is owned by PepsiCo and is primarily commercialized outside of North America.
It competes with Coca-Cola's Fanta and Cadbury-Schweppes's Orange Crush brand, with
flavor brands local to individual countries. As with most soft drinks, Mirinda is available
in multiple formulations depending on the taste of individual markets.
History:
Mirinda was originally produced in Spain.
It became available in the United States in late 2003 in bilingual packaging, and initially
sold at a reduced price, presumably to become a competitor against Coca-Cola's Fanta
brand. Since 2005, Mirinda flavors have largely been sold under the Tropicana Twister
Soda brand in the United States except in Guam, where Pepsi began selling it under the
Mirinda brand in 2007 (replacing Chamorro Punch Orange). Pepsico also tried to sell
Mirinda in Brazil in late 1996, but the brand was discontinued in 1997 after weak sales,
keeping the local brand Sukita under production.
'The Taste is in Mirinda' with the Blue Man Group. In some markets, including
Mexico, the Blue Man Group campaign re-launched Mirinda away from a multi-flavor
positioning to a brand solely focused on the orange flavor. The Blue Man Group
campaign showed the Blue Man Group competing to drink orange Mirinda and
celebrating a successful drink with an open-mouth exclamation of 'Mirindaaaa'. Also in
this same country Mirinda launch a campaign with the Pokémon anime series to the
children with a promotion of many gadgets with the characters of the manga series.
A recent, highly successful advertising campaign was launched in India featuring a
handsome young gentleman, Stefan Persson, gallivanting about town in hunt of his sweet
sweet Mirinda. Stefan's credible portrayal of the Mirinda-obsessed youth earned the
campaign accolades in Brand Equity, the advertising section of a leading financial
newspaper.
Mirinda advertising campaigns over the last fifteen years have been handled by Pepsi's
stable of creative agencies, including BBDO and J Walter Thompson.
Mirinda also regularly introduces special movie-themed editions in Asia. Recent ones
included Batman (Blueberry) and Superman (Fruit punch). Mirinda has also recently released
a new flavour of drinks called Mirinda Sorbet. They come in two flavours:
Raspberry and lime.
Pepsi and Mirinda (orange flavor) with Arabic labels (bottled, left to right).
· Mirinda is available in most continents of the world with other PepsiCo products.
It is also in the Middle Eastern markets, but the name is commonly
mispronounced as "Miranda" due to its Arabic spelling.
· The name "Mirinda" means "amazing" in Esperanto. There is a claim that the
original manufacturer of Mirinda, which later sold the brand to PepsiCo, was an
Esperanto-speaking individual.
· Spanish-speaking consumers may also associate it with merienda or afternoon
(teatime) snack.
· Mirinda's primary formulation is as an artificially flavored beverage; however, it
has been produced in the past with a percentage of fruit juice, usually due to local
tax benefits tied to non-artificial juice ingredients.
· Mirinda was sold in a distinctive ribbed glass bottle in Australia and parts of
Southeast Asia, when originally released there.
· Mirindas asesinas ("Killer Mirindas") was the first short film of the Spanish
filmmaker Álex de la Iglesia.
About Slice:
Slice is a line of fruit-flavored soft drinks manufactured by PepsiCo and introduced in
1984, with the lemon-lime flavor replacing Teem.
Varieties of Slice have included Apple, Fruit Punch, Grape, Passionfruit, Peach,
Mandarin Orange, Pineapple, Strawberry, Cherry Cola, "Red", Cherry-Lime, and Dr
Slice. Originally, the drink was known for containing 10% fruit juice, but that was
discontinued by 1994.
The original design of the can was a solid color, related to the flavor of the drink. These
were replaced around 1994 with black cans, with a colorful burst (once again, related to
the flavor of the drink), along with slicker graphics. Around 1997, the cans became blue
with color-coordinated swirls. The original orange flavor was reformulated at this time
with an infiltration marketing campaign led by Danieli. The new flavor's slogan was "it's
orange, only twisted." Orange Slice has since been changed back to its original flavor.
Lemon Lime Slice was replaced by Sierra Mist in most markets in the summer of 2000.
Sierra Mist became a national brand in 2003. The rest of the Slice line was replaced in
most markets by Tropicana Twister Soda in the summer of 2005, although the Dr Slice
variety can still be found in some fountains. It has been discontinued in more and more
markets though.
In early 2006, the Slice name was resurrected for a new line of diet sodas from Pepsi,
called Slice ONE. Initially, Slice ONE was available exclusively at Wal-Mart stores, in
orange, grape, and berry flavors. All three flavors are sweetened with Splenda.
In 2009 Slice (Orange, Diet Orange, Grape, Strawberry, Peach) will be sold only in WalMart Stores.
About Mountain Dew:
Mountain Dew (also known as Mtn Dew as of late 2008) is a soft drink distributed and
manufactured by PepsiCo. The main formula was invented in Knoxville, Tennessee,
named and first marketed in Knoxville and Johnson City, TN in the 1940s, then by
Barney and Ally Hartman, in Fayetteville, North Carolina and across the United States in
1964. When removed from its characteristic green bottle, Mountain Dew is bright
yellowgreen
and translucent.
As of 2007, Mountain Dew was the fourth-best-selling carbonated soft drink in the
United States, behind only Coca-Cola Classic, Pepsi-Cola, and Diet Coke. Diet Mountain
Dew ranked ninth in sales in the same year.
On October 15, 2008, it was announced that Pepsi would be redesigning their logos and
re-branding many of their core products by the end of 2008. At the same time they
registered the name "mtn dew" and a related logo with the United States Patent and
Trademark Office. This also announced the re-launch of Mountain Dew in the UK, which
was released by Pepsi in 1996 but was dropped in 1998 due to low sales.
As of April 2009, the flavors "Code Red" and "Live Wire" continue to use the previous
Mountain Dew design.
Ingredients:
Mountain Dew lists its ingredients as:
· Carbonated water
· Sugar (replaced by High fructose corn syrup (HFCS) in much of the United
States)
· Concentrated orange juice
· Citric acid
· Natural flavors
· Sodium benzoate (preserves freshness)
· Caffeine (54 mg per 12 US fluid ounces (350 ml))
· Sodium citrate
· Erythorbic acid (preserves freshness)
· Gum arabic
· Calcium disodium EDTA (to protect flavor)
· Brominated vegetable oil
· Thiamin hydrochloride
About 7 UP:
7Up is a brand of a lemon-lime flavored non-caffeinated soft drink. The rights to the
brand are held by Dr Pepper Snapple Group in the United States, and PepsiCo (or its
licensees) in the rest of the world. The 7 Up logo includes a red spot between the '7' and
'Up'; this red spot has been animated and used as a mascot for the brand as Cool Spot.
Name:
According to Professor Donald Sadoway (MIT) the name is derived from the atomic
mass of Lithium, 7, which was originally one of the key ingredients of the drink (as
lithium citrate).
However, there are numerous myths explaining the name. One popular myth is that its
creator named the soft drink after seeing a cattle brand with the number 7 and the letter
U. Other theories suggest that the drink was formulated with seven flavors plus the
bubbles from the drink's carbonation (the bubbles go up). Other ideas include the original
bottle contained seven ounces; its creator came up with the name while playing dice; that
it was the 7th large commercial lemonade brand that tasted the same. Another rumor has
it that the name was created because the company had previously failed six times, hence
the name "7 Up". Before the formula change in 2006, a can of 7 Up included seven
ingredients. The "Up" in the drink's name might refer to the original inclusion of lithium
citrate, when it was marketed as a patent medicine to cure hangovers.
Some people mistakenly believe that the name 7 Up comes from the belief that its pH is
7.0 and therefore neutral. This is not the case at all: the pH of 7 Up is comparable to
many other soft drinks. At a pH of 3.67, Diet 7 Up is less acidic than lemon juice (pH
2.3), vinegar (pH 2.9) or wine (pH 3.5).
History:
7 Up was created by Charles Leiper Grigg who launched his St. Louis-based company
The Howdy Corporation in 1920. Grigg came up with the formula for a lemon-lime soft
drink in 1929. The product, originally named "Bib-Label Lithiated Lemon-Lime Soda",
was launched two weeks before the Wall Street Crash of 1929. It contained lithium
citrate, a mood-stabilizing drug. It was one of a number of patent medicine products
popular in the late-19th and early-20th centuries; they made claims similar to today's
health foods. Specifically it was marketed as a hangover cure. The product's name was
soon changed to 7 Up.
The Great Depression was just the beginning of the business challenges the product
would face. In its early years, there were around 600 lemon-lime beverage brands being
sold in the US. 7 Up was able to survive and become the market leader in the category by
being one of the first to be nationally distributed as well as being marketed as more
healthy than other soft drinks.
The success of 7 Up led Grigg to rename his company to "The Seven Up Company" in
1936.
Lithium citrate was removed from 7 Up's formula in 1950.
Expanding the brand beyond a niche market, major competitors began to set their sights
on it such as The Coca-Cola Company with its Sprite brand introduced in 1961. Sprite
would not challenge 7 Up's position seriously until the 1980s when Coke forced its major
bottlers, then distributing 7 Up, to drop the beverage in deference to Sprite. 7 Up
challenged Coke's actions in court as "anti-competitive", a challenge they eventually lost.
Formula:
7 Up has been reformulated several times since its launch in 1929. In 2006, the version of
the product sold in the U.S. was re-formulated so that it could be marketed as being
"100% Natural". This was achieved by eliminating the preservative calcium disodium
EDTA, and replacing sodium citrate with potassium citrate in order to reduce the
beverage's sodium content. This re-formulation contains no fruit juice and is still
sweetened with high fructose corn syrup (HFCS). The manufacturing process used in the
production of HFCS has led some public health and special interest groups to challenge
the ad campaign's "natural" claims. In 2007, after the Center for Science in the Public
Interest threatened to sue 7 Up, it was announced that 7 Up would stop being marketed
as"100% natural". Instead, It is now promoted as having "100% Natural Flavors". The
controversy does not extend to other countries, such as the United Kingdom, where high
fructose corn syrup is not generally used in foods, including 7 up.
5
PEPSI’S MARKETING MIX:
Product : Pepsi has been bringing funand refreshment to consumers for over 100 years. Learn
moreabout our flagship brand and the broad spectrum of beverages itoffers worldwide.
PepsiCo, Incorporated is a Fortune 500,American multinational corporation headquarteredin
Purchase, New York, with interests in manufacturing andmarketing a wide variety of
carbonated and non- carbonatedbeverages Pepsi is known as worlds numbers one cold drink
and spreadall over the worlds. Pepsi consumptions increase day by day dueto increase of
Pepsi lover.Design: Its design is different from others colddrinks.Brand Name: Our products
can be found in nearly 200countries around the globe. PepsiCo is a globalfood and beverage
leader with a diverseproduct portfolio that includes 22 brands that each generatesmore than
$1 billion each in annual retail sales. Take a closer lookat the brands and products that make
up the PepsiCo portfolio.Variety: Pepsi is available in many flavorsaccording to the
customers need and wants.
Prices:Price includes the pricing strategy of the company for itsproducts. How much
customer should pay for a product? Pricingstrategy not only related to the profit margins but
also helps infinding target customers. Pricing decision also influence thechoice of marketing
channelsPrice decisions include: Pricing Strategy (Penetration, Skim, etc) List Price payment
period Discounts Financing Credit termsThe soft drink industry today is confronted with a
bewilderingarray of price increases. Our expenditures for labor, ingredients,transportation
and more all continue to rise. The cost ofaluminum alone has increased dramatically since
last year. Acrossour entire system however, we have been cutting overhead andreengineering our manufacturing process in order to keep ourprices competitive. It is our policy
to limit any price increases tothe retail trade to the lowest possible extent ProvidingPrice of a
Pepsi is also affordable for a normal person that can beafford ed. Pepsi is given to it lover at
nominal rates Pepsi isavailable in various prices. Price of all soft drinks were probablysame
but Pepsi lovers wants Pepsi instead of coke dew and 7upand other drinks.
Discount Providing quality products at the lowest possible price hasalways been one of the
main concerns of Pepsi.For example, in PAKISTAN two-litre bottle of Pepsi cost 90rs and
allow discount to its retailers and wholesellers and also allow discount in RAMZAN and
Deepawali and Holi.
Place: It not only includes the place where the product is placed, allthose activities performed
by the company to ensure theavailability of the product tot he targeted customers.
Availabilityof the product at the right place, at the right time and in the rightquantity is
crucial in placement decisions.Placement decisions include: Placement Distribution channels
Logistics Inventory Order processing Market coverage selection of channel
membersIntroduction of Pepsi. Pepsi was first introduced as "Brads Drink. n New Bern,North
Carolina, United States, in 1893 by Caleb Bradham, whomade it at his drugstore where the
drink was sold. It was laterlabeled Pepsi Cola, named after the digestive enzyme Pepsin
andkola nuts used in the recipe. Pepsi was firstly introduce with thename of Pepsi cola and
than converted into Pepsi name. somepictures of Pepsi when it was introduce in new Bern
northCarolina and united state are.
Promotion: Promotion includes all communication and selling activities topersuade future
prospects to buy the product. Promotiondecisions include: Advertising Media Types Message
Budgets Sales promotion Personal selling Public relations Direct marketingMethods of
promotions Pepsi uses various methods to Promote its products, mostly it is through
advertisements and via crickets and films hero also cast for Pepsi advertisement and publicity
Another way to publicity is to offer a new scheme into market that buy Pepsi 300ml and
chance to win ticket to watch world cup live with blab blab blab.
5.1
PEPSI – THE INDIAN EXPERIENCE:
Previously there were two ads. Tags “Yehi Hai Right Choice Baby”, “Nothing Official about
It” &“Yeh Dil mange More”, which immediately ring a Bell – it’s to be a Pepsi. But today
this ad. Tag hasbeen changed and now it’s "Yeh hai Youngistaan Meri Jaan!"Pepsi is a short
span of its operations in India has found a place in hearts and minds of the Indian Consumers.
The success has primarily been due to the innovative and passionate Indian team whichhas
been built over the years. Pepsi is a trendsetter managed and run by Indians, where important
decisions are taken locally. Pepsi started its operations in India in 1989 and since Pepsi Co.
has set up a fully integrated
Beverages:
Pepsi has set operation India viz. manufacturing, research and development, marketing,
distribution and franchising covering fruit/vegetable processing, export, snack foods and
beverages. In 1993 Pepsi Co. set up a hold company to further accelerate growth the future
through new initiatives and joint ventures. Pepsi Co. fully committed to India and the national
objective of development of technology and accelerating exports and employment. It has
brought in over $500 million in foreign exchange as well as technology, which is used for its
global network by way of royalty, know how of dividends.
Pepsi Co. has a turnover $25 billion, half of which comes from beverages and the other half
from the snacks foods divisions. The beverages arm of the Pepsi Co. is Pepsi Cola Company
and the snacks foods company is called Frito – Lay Inc. The year 1998 is the centennial year
of Pepsi.
Beverages:
Pepsi has set up a concentrate plant in 1989 at Channo, District Sangpur, Punjab, with an
investment of $ 5 million the state of the art Plant houses a world – class laboratory where
soft drinks from all over the world are tested. This concentrate plant supplies Pepsi, 7Up,
Team, Miranda, Orange, Apple & Lemon flavors to all the Pepsi Bottling plant in South Asia.
Pepsi has 40 Bottling plant in India, out of which 16 are company owned and 24 are owned
by
Indian franchisees, Pepsi Co. has invested heavily on up gradation of these bottling plants and
has
put 5 green fields projects in backward areas such as Jainpur and Bazpur in U.P. Bharuch in
Gujarat,
Sonarpur in West Bengal and Naclamangala in Karnataka.
New project are coming up in Maharastra and Tamilnadu. In addition to the Company’s own
Bottling Operations (COBO), Pepsi has 24 Franchisee Owned Bottling Units in India. These
franchisee manufacturers are also planning to install substantial additional capacities. In last
two years Pepsi Co.’s franchisees have put new bottling plant at Jaipur, Bhopal, Hajipur
(Bihar), Guntur (A.P) and Gawahati (Assam) with further investments. Pepsi Co.’s
franchisees are amongst the best in the Pepsi world and the 1998 two Indian Franchisees were
chosen for being the Bottler of the Year amongst all International Bottlers.
Juices:
Pepsi Co. plans to launch juices in a bog way in India, there by helping the farmers in fruit
procurement. Pepsi Co. Agriculture Scientists has undertaken research on Mango, Guava and
Oranges and these fruits would be the priority area for the juice launch in India. Presently
Pepsi has one juice brands Slice, which are presently mango juice brands. Pepsi Co. also has
bottling lines in most of the plants.
Developing Sports:
Pepsi today is one of the main sponsor’s related activities in India and has counted to promote
upcoming new players Cricket, Hockey and Football. In Mohali, Pepsi has developed a Pepsi
Cricket Academy, which would develop over 500 Young Cricket enthusiasts in next five
years. Similarly Pepsi cricket coaching camps and clinics are held to coach young boys in
North & South.
Community Relation:
Most of the bottling plants are located in backward areas, thereby giving huge employment
opportunities in these areas. Pepsi as a responsible company undertakes social projects in and
around the bottling plants. These include supports to the education centers, sponsors,
inoculation camps, providing free health checkup, initiating sanitation, drives, promoting
literacy drives and helping village to put up bus shelter etc.
5.2
MARKET SEGMENTATION:
The soft drink being a FMCG product has a wider and scattered market. Thus to enable
concentrated effort of marketing activities in different scattered market. The entire market is broken down into the following segments.
(A) Route Market
(B) Home Market
(C) At Work Market
(A) ROUTE MARKET :
Outlets in this market cater to those people who are engaged in Shopping, eating, outgoing to
and from work, in amusement enters etc.
(B) HOME MARKET :
Outlets in this market cater to people buying prominently for home consumption either by
case or loose bottles.
(C) AT WORK MARKET :
Outlets in this market cater to people working in Offices, Factories etc. An attempt is always
made to make soft drinks readily and conveniently available all day long while people are
actively working.
5.3
PROMOTIONAL ACTIVITIES:
Promotional activities play a greater and important role in the marketing effort carried out by
PEPSI CO. It is for more create and maintain an image of its products.
PROMOTIONAL ACTIVITIES CARRIED:
Point of purchase (POP)
Special events (Fair show, Road show etc.)
Hoarding
Newspaper, TV, Radio etc.
Merits of Sales Promotions:
1. It stimulates in the consumers & attitudes towards the products.
2. It creates a better incentive in the consumers to make a purchase.
3 It is a demand creator.
4. It gives direct inducement to the consumer to take immediate action.
5. It is flexible.
6. It can be used at any stage of any product introduction.
7. Sales promotion leads to low unit-cost.
8. It is an effective supports of sales.
9. It helps the salesmen makes his efforts more productive.
10. The promotional tool is the most effective to be used in increasing the sales volume.
Demerits of Sales promotions:
1. Sales promotions are only supplementary devices to supplementselling efforts of others
promotional tools.
2. Sales promotions activities are having temporary and short life.
3. Brand image is affected by too many sales promotions activities consumer are of the
opinions that due to the lack of popularity and over stocking of products of a company these
sales promotional activities are conducted.
4. Discount or rebates are allowed by boosting the prices of the goods.
5. An immediate increase in demands is stimulated by this it is expensive and leads to arise
price of the products.
6. Sales promotion increases the expenses of the-company on Sales & distribution expenses.
7. Sales promotion increases the burden on the company men.
8. Sales promotion increases the paper work lengthy & complication too.
9. Sales promotion decreases the storage capacity in the store house.
10. Sales promotion increases the maintenance cost of the firm.11. Sales promotion gives the
chance to the distributor to do malpractice.
5.4
MERCHANDISING POLICY:
In today's fast moving industry and highly competitive market, only those products are likely
to be purchased which are capable of hitting the impulse of the consumers. The products
appeal should be able to penetrate and get embedded into the perpetual space of the
consumer's mind. The concerned product should induce to the consumers. Pepsi believes that
"Jo Dikhta Hai Wahi Bikta Hai" i.e. any product which is visible is bound to be sold.
METHODS OF MERCHANDISING:
 Visicooler placement
 Glow signboard






6
Paintings
Crate Stacking
Umbrella
Banners
Display
Special Schemes
DISTRIBUTION CHANNEL OF PEPSI
To make its products available at the right place, at the right time in the market, at the right
place, the sales department of the company plays major attention towards controlling the
channel of distribution.
The company right from its beginning stage maintains single type of marketing channel. The
nature of channel is as follows :
ABOUT DISTRIBUTORS:
At first, soft drink is supplied to distributors. Retailers or Dealers cannot take the delivery
from the company. They have to take it from their respective of nearest distributors. The
distributors selected on the basis of assurance given by them regarding minimum sales, which
they have mention annually. The selection is also done on the financial position and
reputation of distributing in the market. As for the example, first priority is given to those
people who are in cigarette business. Depending upon market each distributor in its initial
stage, deposit some security money. This amount varies between five thousand to ten
thousand. The distributors at first have to seek the permission to the sales department for the
number of cases of soft drinks required by them. After getting for the proper authority from
the sales department, they take the delivery from the shipping department paying the
requisite either in cash or as demand draft.
The distributors can be dropped if they fail to achieve the required target of sales. They can
be also dropped when they don't follow the instructions given by the company or when they
charge high price or when they are engaged in black marketing, loading etc. But the company
has not dropped any of its distributors till now.
The supply of soft drinks to the distributors depends upon the ups and downs in the sales.
But, in the initial stages, the distributors have to sell up to a minimum target set by the
company or as decided by an agreement between the company and the' distributors. In the
last stages soft drink is supplied as and when demanded by the distributors.
ABOUT RETAILERS OR DEALERS:
The distributors select the retailers. There is no relation between the company and its
retailers. On the other hand there are no definite and fixed criteria from the selection for
appointment of retailers from the side of distributors. Anyone like "Panwala", "Cigarette
Shop" or any other shopkeeper can have the stall for the sale of soft drinks and they are called
retailers or dealers. They have to give assurance to the concerning distributors for better sales
and at the time or taking delivery .
7
MARKETING STRATEGY:
Marketing strategy is the complete and unbeatable plan designed specifically for attaining the
marketing objective of the firm. The market objective indicates what the firm indicates, what
the firm wants to achieves the marketing strategy provides for achieving them.
The marketing strategy is not able idea it is a well outlined plan, and there are different ways
to formulating it. Basically formulating of marketing strategy consists of two main steps.
Selecting a Target market; assembling the marketing mix, actually, the target marketing and
marketing mix together constitute the marketing strategy of the firm.
When the Pepsi Food Company entered in the fudian soft drink market the market was
already prevailed by coke and previously it was parle, Pepsi tried to establish in fudia with a
unique marketing policy, Pepsi took into consideration of youth segment target market.
Though the advertisement of Pepsi highlighte4 the style of living of young generation with
different walk of life. Pepsi brought in its advertisement different stalwart's personalities from
fields like young clue stars, sport stars and famous personalities from different fields. It has
attracted the young generation and of course increase the sale of Pepsi, Pepsi also organized
the national and international sports programmed to attract the young generation.
PROMOTIONAL ACTIVITIES OF DEALERS:
Promotional activities consist of various means of communication persuasively with the
target audience. The important methods are :
(a) Advertisement : Where an identified sponsor pays media (TV) to transmit to target
consumer.
(b) Personal selling : Where sales representatives employed by the engage in interpersonal
communication with individual consumer and prospective customers.
(c) Sales promotion : Where the market utilize demonstrations, premiums, contests or similar
devices.
(d) Publicity and public relation : Help to stimulate supportive items about the firm and its
product that have greater credit with public than advertisement.
Of all the methods of promotional activities that constitute the promotion mix, sales
promotion is the only one method that makes use of incentive complete the "Push pull
promotional strategy" of motivating the sales for the distributor and the consumer transacting
a sale.
According to "American Marketing Association" sales promotion refers "Those activities
other than personal selling, advertising and publicity, that stimulate consumer purchasing and
dealer effectiveness, such as display, shows and Exhibition, demonstration and various other
non "recurrent selling efforts not in ordinary 'sales promotion' is also known by the name of
'Extra Purchasing Value' (E.P.V.)".
Trade sales promotion techniques:
.Trade allowances
short term incentive offered to induce a retailer to stock up on a product.ii.
Dealer loader:
An incentive given to induce a retailer to purchase and display a product.iii.
Trade contest:
A contest to reward retailers that sell the most products.iv
. Point-of-purchase displays:
Extra sales tools given to retailers to boost sales.v.
Training programs:
dealer employees are trained in selling the product.vi
. Push money:
also known as "spiffs". An extra commission paid to retail employees to push
products.vii.
Trade discounts (also called functional discounts):
These are payments to distribution channel members for performing some function
8
SWOT ANALYSIS OF PEPSI :
STRENGTH & WEAKNESSES:
Pepsi Cola throughout its 100 years of existence has developed much strength. One of the
strengths that have developed Pepsi into such a large corporation is a strong franchise
system. The strong franchise system was the backbone of success along with a great
entrepreneur spirit. Pepsi’s franchise system and distributors is credited to bring Pepsi
from a 7,968 gallons of soda sold in 1903 to nearly 5 billion gallons in the year of 1997.
Pepsi also has the luxury to spend 225 million dollars in advertising a year. This
enormous ad budget allows Pepsi to reinforce their products with reminder advertising
and promotions. This large budget also allows Pepsi to introduce new products and very
quickly make the consumer become aware of their new products.
Pepsi-Cola provides advertising, marketing, sales and promotional support to Pepsi-Cola
bottlers and food service customers. This includes some of the world's best-loved and
most-recognized advertising. New advertising and exciting promotions keep.
Pepsi-Cola brands young. The company manufactures and sells soft drink
concentrate to Pepsi-Cola bottlers. The company also provides fountain beverage
products.
Pepsi also has had the good fortune of making very wise investments. Some of
the best investments have been in their acquiring several large fast food restaurants. They
have also made wise investments in snack food companies like Frito Lay, which at
present time is the largest snacks company in the world.
Probably high on the list of strengths is Pepsi’s beverage line up. Pepsi has four
soft drinks in the top ten beverages in the world. These brands are Pepsi, Mountain
Dew, Diet Pepsi, and Caffeine Free Diet Pepsi. Pepsi also has the No.1 tea in the
United States, Lipton Tea. Some other strong brands are All Sport, Slice, Tropicana,
Starbucks, Aquafina and a license agreement with Ocean Spray Juices.
Pepsi Cola like any company has weaknesses. Ironically, the one strength that has
been credited for most of its success in the past has now become a weakness for Pepsi.
This former strength is the franchise system. The franchise system in Pepsi Corporate
view has become a liability. Pepsi in today’s market must be able to act as one instead of
several separate units.
The franchise system has become a hurdle to Pepsi because many of these
franchises have become very strong and will not be dictated by PepsiCo on how to
handle their operations. Some of these franchises are unwilling to support certain Pepsi
products and at times produce their own private label products that are in direct
competition with Pepsi products.
Secondly the franchisees are not willing to make capital expenditures to keep up
with Coca-Cola who is a firm believer in reinvesting into their infrastructure (Coca Cola
at present time does not operate a franchise bottling system).
As mentioned earlier Pepsi has tried to elevate this problem by spinning off their
interest in fast food restaurants but at present time are still guilty by association to many
of the large fountain accounts. The franchise system has also affected fountain sales due
to the fact franchisees are not willing to buy expensive fountain equipment to place in
accounts mainly because the profit margin is so low and could take years to recoup their
investment. Pepsi also has a weakness in the international beverage market.
Unfortunately for Pepsi they were a “Johnny Come Lately” into this arena. Pepsi
has tried to enter this market by trying to do in three years what took Coke 50 years to
do. This area will take years for Pepsi to mature simply due to Coke’s dominance in the
international market and the strong ties that Coke has developed with these markets and
their governments.
Pepsi customers buy nearly five billion gallons of soft drinks per year. Pepsi
customers buy their products because of taste, price, packaging and promotional factors
and of a wide variety of brands. Pepsi customers also buy their products due to the high
accessibility of Pepsi brands.
Pepsi products are distributed to many outlets. For example, supermarkets where Pepsi
buys large shelf area and display areas so the customer can find them easier, viz,
Convenience stores, Restaurants, Movie theaters and almost and other conceivable spots.
Pepsi has a competitive advantage over Coke because of the image it portrays.
Pepsi promotes itself as the choice of the “New Generation”. Pepsi gets this advantage
by implementing such large marketing projects like “Project Globe”. This marketing
plan, which Pepsi spent 637 million dollars over five years, is to introduce the new rich
deep blue coloring of its packaging. The rich deep blue coloring represents eternal
youthfulness and openness. Marketing plans like this made Pepsi one of the coolest
brands recognized among teens in the top five and the only beverage product in this
category.
Another competitive advantage that Pepsi has is in their product Mountain Dew.
Mountain Dew has grown a staggering 74.1% over the last five years. Mountain Dew has
a 6.3% market share and has recently become the No.4 soft drink in America. At this
current pace Mountain Dew will be come the first non-cola to reach the 1billion gallon
mark in one year.
Pepsi also has an advantage as an innovator in their field. They are the first soft
drink makers to introduce a new one-calorie soda called Pepsi-One with, just approved
by the FDA, Ace-K.
This new sweetener is slated to be a break through for diet soda in which it limits
the after taste associated with diet soda and brings a more cola taste to the product. Pepsi
has always been a strong No.2 against Coke and have become one of the world’s largest
Companies. As far as market share is concerned Pepsi stands strong.
PEPSI-THE INDIAN EXPERIENCE
· Pepsi is one of the most well known brands in the world today available in over
160 countries. The company has an extremely positive outlook for India. "Outside
North America two of our largest and fastest growing businesses are in India and
China, which include more than a third of the world’s population." (PepsiCo’s
annual report, 1999)
· This reflects that India holds a central position in Pepsi’s corporate strategy.
India is a key market for PepsiCo, and at the same time the company has added value to
Indian agriculture and industry. PepsiCo entered India in 1989 and is concentrating in
three focus areas – Soft drink concentrate, Snack foods and Vegetable and Food
processing.
· Faced with the existing policy framework at the time, the company entered the
Indian market through a joint venture with Voltas and Punjab Agro Industries. With the
introduction of the liberalization policies since 1991, Pepsi took complete control of its
operations. The government has approved more than US$ 400 million worth of
investments of which over US$ 330 million have already flown in.
· One of PepsiCo’s key strategies was to develop a completely local management
team. Pepsi has 19 company owned factories while their Indian bottling partners own 21.
The two advertisements tags: ‘yehi hai right choice baby’ and ‘nothing official about it’
immediately ring a bell- it’s got to be Pepsi.
The advertisement tag ‘yehi hai right choice baby’ was the first ‘Hinglish’
slogan ever used in the in the Indian market. This slogan proved to be the best suited one
for Pepsi and it was a mega hit and at that moment of time.
Pepsi in a short span of its operations in India has found a place in the hearts and
minds of the Indian consumers. The success has primarily been due to the innovative and
passionate Indian team, which has been built over the years. Pepsi is a trendsetter
managed and run by Indians, where important decisions are taken locally.
Pepsi started its operations in India in 1989 and since then PepsiCo has set up a
fully integrated operation in India viz. Manufacturing, Research & Development,
Marketing, Distribution and Franchising- covering fruit/vegetable processing, Exports,
Snack Foods & Beverages. In the mean time Pizza Hut and Frito Lay’s are the examples
in this regard only.
Pepsi has 40 bottling plants in India, out of which 16 are company owned and 24 are
owned by Indian franchisees. One of the major player in franchisee is RKJ Group.
The RKJ group is India's leading supplier of retailer brand Carbonated and NonCarbonated soft drinks, with beverage manufacturing facilities in India and Nepal. Its
experience in the beverage industry dates back to the sixties when it had the first franchise at
Agra. It has the license to supply beverages in the territories of Western U.P., part of M.P.,
half of Haryana, whole of Rajasthan, Goa, 3 districts of Maharashtra, 9 districts of Karnataka
and whole of Nepal. The group has in total 18 bottling plants in India & Nepal and is
responsible for producing and marketing 44% of Pepsi requirement in India. This group has
brought name and fame to the Pepsi as in all this regions Pepsi is at the commanding position
and in the mean this group has diversified itself into ice cream, suiting and shirtings,
restaurants, beer plant in Mauritius & edible oil plant in Sri Lanka.
PEPSI-COLA IN INDIAN SCENARIO:
Since the entry of Pepsi-Cola to India in 1989, the soft drink industry has under
gone a radical change. When Pepsi-Cola entered, Parle was the leader with the Thums-up
being its flagship brand. Other products offering by Parle included Limca & Goldspot,
another upcoming player in the market was, the erstwhile bottler of Coca-Cola, “pure
drinks”. Its offering includes Campa- Cola, Campa-Lemon & Campa-Orange.
With the re-entry of Coca-Cola in the Indian market, Pepsi-Cola had to go in
for more aggressive marketing to sustain its market share. The chronology of the
initial phase of the Cola wars in India was:
· 1977: Parle launched Thums-up and pure drinks launched Coca-Cola.
· 1998: In September, final approval for the Pepsi Foods Ltd. Project granted by
the “Cabinet Committee” on economic affairs of the “Rajeev Gandhi Govt.”
· 1990: In March, “Pepsi-Cola and 7-up” launched markets in north India.
· 1990: In May, The government cleared the Pepsi-Cola project again but with a
change in brand name to “Lehar Pepsi”, simultaneously it rejects the Coca-Cola
application “Citra” from the Parle, stable hited the market.
· 1991: Pepsi-Cola extended its soft drinks business and reached at national scale.
Pepsi-Cola launched its product in Delhi and Bombay.
· 1992: In January, Brito foods application is cleared by the FIPB. Pepsi-Cola and
Parle start initial negotiation for a strategic alliance but took break off after a
while.
· 1993: Pepsi-Cola launched “Slice and Teem” captured about 25-30% of the soft
drink market in about 2 years.
· 1994: Pepsi bought “Dukes & Sones”.
· 1995: Pepsi-Cola lunched cans, having capacity of 330ml in various flavors.
· 1996: Pepsi-Cola domestic and international operations combined into a
Pepsi-Cola Company. International and domestic operations combined into
one business unit called “Frito-lay Company”.
· 1997: Pepsi-Cola brought “Mirinda Orange” opposite to “Fanta”.
· 1998: Pepsi-Cola launched “Mirinda Lemon” opposite to “Limca”.
· 1999: Pepsi-Cola launched “Diet Pepsi” in can and 1.5 Lit. “PET” bottle for
health conscious people.
· 2001: Pepsi-Cola launched Slice in “Tetra” Pack.
· 2003: Pepsi-Cola launched “Pepsi Blue” to get the favour of world cup season.
· 2005: Pepsi-Cola launched Mirinda in “Straw Berry” flavour to get the favour of
movie Batman.
· 2005: Pepsi-Cola launched 7-up as “7-up ice”.
Pepsi-Cola launched “Mountain Dew” to be more competitive with Coca-Cola
PEPSI-COLA PHRASES:
The Pepsi-Cola marketing phrase has also changed many times
1909-1939: Delicious and Healthful
1939-1950: Twice As Much For A Nickel Too
1950-1963: The Light Refreshment
1953-1961: Be Sociable
1961-1963: Now It's Pepsi For Those Who Think Young
1963-1967: Come Alive! You're In The Pepsi Generation
1967-1969: Taste That Beats The Others Cold
1969-1973: You've Got A Lot To Live, Pepsi's Got A Lot To Give
1973-1975: Join The Pepsi People Feelin' Free
1975-1978: Have A Pepsi Day
1978-1981: Catch That Pepsi Spirit
1981-1982: Pepsi's Got Your Taste For Life!
1983-1983: Pepsi Now!
1984-1990:
1990- 1994:
1995- 2004
2004- now
Pepsi, The Choice Of A New Generation
Pepsi nothing official about it
Yeh dil mange more (Pepsi India)
My Pepsi my world
Pepsico:yeh pyaas hai badi.
STRENGTHS:· PEPSI has an excellent brand name, awareness & high quality image.
· PEPSI has effective and stronger service than its competitors like COKE who too have a
good name in soft drink market.
· Quality products at a competitive price.
· PEPSI has an effective distribution system i.e. dealers have good contacts with the
customer executive.
· Continuous & strategic improvements in the promotional strategies.
· Strong dealer network
· PEPSI has got goodwill in the market with regard to the brand name.
· PEPSI has highest Market share of 69% in C.S.D. sector.
· Market share of PEPSI is consistently increasing.
WEAKNESSES: · The cola flavors of Pepsi have not so good test as previous (as the customer perceives it).
· PEPSI dose not have any provision for expiry and fusty goods.
· Restricted range of products.
· The frequency of vehicle in peak season is not sufficient.
OPPORTUNITIES:· Consumers are showing increased interests in PEPSI products.
· New develop schemes like “Scratch card system ” provides it an edge over its
competitors
· Top position in C.S.D. products gives it an advantage.
· Pepsi can explore its distribution network in interior area also.
THREATS:· Competitor’s products already available in the market with similar schemes.
· Grubby packaging and storage in compare of Coke.
· Tough competition from Coke.
· strategic pricing by competitors may affect the company’s wafer thin margins.
MARKETING STRATEGY:
Marketing strategy is the complete and unbeatable plan designed specifically for attaining the
marketing objective of the firm. The market objective indicates what the firm indicates, what
the firm wants to achieves the marketing strategy provides for achieving them. The marketing
strategy is not able idea it is a well outlined plan, and there are different ways to formulating
it. Basically formulating of marketing strategy consists of two main steps.Selecting a Target
market; assembling the marketing mix,actually, the target marketing and marketing mix
together constitute the marketing strategy of the firm.When the Pepsi Food Company entered
in the fudian soft drink market the market was already prevailed by coke and previously it
was parle, Pepsi tried to establish in india with a unique marketing policy, Pepsi took into
consideration of youth segment target market.Though the advertisement of Pepsi highlighte4
the style of living of young generation with different walk of life. Pepsi brought in its
advertisement different stalwart's personalities from fields like young clue stars, sport stars
and famous personalities from different fields. Ithas attracted the young generation and of
course increase the sale of Pepsi, Pepsi also organized the national and international sports
programmed to attract the young generation.
The set of controllable tactical tools : A product, place service and promotion (4p's) that the
firm blends to produce the response it wants in the target market. These are the following 4ps.
1. Product :
That could meet the identified needs of chosen consuming groups.
2. Price :
The amount of money charged for a product or services or the sum of the values that
consumers exchange for the benefits of having or using the product or service.
3. Place :
It performs various functions like transportation warehousing, channel management etc. the
product could conveniently reach the consumer.
4. Promotion :
The firm carries, out a no. of measures like personal setting, advertising and sales promotion
programmed with view to communicate the consumer and promoter of the product.
It is the mechanism to achieve the consumption of marketing process striking the level of
price that is accepted to the firm as well as consumer.
4P's policies of the Pepsi products :
Products :
There are three lines of products of soft drinks are produced in india and other asian nations.
That is matched with international quality product line. These are the followings :
Pepsi : 200ml, 300mI, 600ml, 2000ml,250ml (Slim cane), 330ml (Cane).
Mirinda : 200ml, 300ml, 600ml, 2000ml
7UP : 200ml, 300ml, 600ml, 2000ml,200ml (Slim cane), 330ml (Cane).
Mountain Dew : 200mI, 600ml, 2000ml
Slice : 250ml, 500ml, 1200ml
Tropicana : 200mI, 1000ml.Soda (LEHAR evervess) : 300ml, 600ml.
Aquafina (Mineral water) : 1000ml.
Pepsi charges the reasonable prices for a product or service to the dealers/retailers against
their competitors and has positioned their product in the market.
Place :
Pepsi has strong channel of distribution and view intermediaries that command the
distribution work.
Bottler-------------- Distributor------------- Retailer or Dealer ----------------Consumer
By this simple distribution, Pepsi is doing well. The company is trying to reach at every
route urban and village areas. The company has succeeded to some extent in reaching its
target.
Promotion :
In the specific sense sales promotion methods are those sales activities that supplement both
personal selling and advertising and coordination them and help to make them effective such
as display,shows, Position and demonstrations and other recurrent selling efforts not in
ordinary route.
Pepsi has taken variety of tools had techniques of sales promotion.Like for example Sales
Promotion Letters, Catalogs, Point of Purchase POP), Display, Customer Service
Programmed and Demonstration Free Sample.
PROMOTIONAL ACTIVITIES OF DEALERS:
Promotional activities consist of various means of communication persuasively with the
target audience. The important methods are :
(a) Advertisement :
Where an identified sponsor pays media (TV) to transmit to target consumer.
(b) Personal selling :
Where sales representatives employed by the engage in interpersonal communication with
individual consumer and prospective customers.
(c) Sales promotion :
Where the market utilize demonstrations, premiums, contests or similar devices.
d) Publicity and public relation :
Help to stimulate supportive items about the firm and its product that have greater credit with
public than advertisement.Of all the methods of promotional activities that constitute the
promotion mix, sales promotion is the only one method that makes use of incentive complete
the "Push pull promotional strategy" of motivating the sales for the distributor and the
consumer transacting a sale.
According to"American Marketing Association"sales promotion refers"Those activities other
than personal selling, advertising and publicity, that stimulate consumer purchasing and
dealer effectiveness, such as display, shows and Exhibition, demonstration and various other
non "recurrent selling efforts not in ordinary 'sales promotion' is also known by the name of
'Extra Purchasing Value' (E.P.V.)".
SUGGESTED REFERENCES:
Sites Visited
 www.google.com
 www.pepsico.com
 www.domain-b.com
 www.yhaoo.com
Books Referred
 Marketing Management by Kotler, Killer, Koushik and Jha
 Marketing Management by Piter Dacken
 Marketing Strategy Magazine
 Marketing management Magazine
 C. R. Khothari