PROJECT ON A STUDY ON MARKETING MIX STRAEGY OF PEPSICO SUBMITTED BY PRIYANKA SURYANATH SHARMA ROLL NO. 74 M.Com - I SEMESTER -II!

"#$%#-#$%&" UNDER THE GUIDANCE OF PROF. GANGA SUSHEEL 'ARRIAR SUBMITTED TO UNI(ERSITY OF MUMBAI NIRMALA MEMORIAL FOUNDATION COLLEGE OF COMMERCE AND SCIENCE )$ FEET ROAD* ASHA NAGAR* THAKUR COMPLEX* KANDI(ALI E!* MUMBAI-4$$ %$%.

DECLARATION

I, Ms. Priyanka S. Sharma of M.Com (Master of Commerce, Semester II) hereby declare that I have completed the pro ect on !" St#dy $n Marketin% Mi& Strate%y $f Pepsico ' in the academic year ()1(*()1+. ,he information s#bmitted is tr#e and ori%inal to best of my kno-led%e.

................ /ate of S#bmission.

................ Si%nat#re of St#dent, ( Priyanka S#ryanath Sharma)

CERTIFICATE This is to certify that the project titled as " St#dy on Marketin% Mi& Strate%y of PepsiCo has been completed by Ms. Priyanka Suryanath Sharma of M.Com. (Semester- ! e"amination in academic year #$%#-#$%&. The information submitted is true and ori'inal to the best of kno(led'e.

_____________________ __________________________ (Dr. T. P. Madhu Nair) Principal ` (Prof. Dr. Neha Goel) Pro ra!!e Coordina"or

)))))))))))))))) )))))))))))))))) (Prof.Gan a #u$heel %arriar) Pro'ec" Guide E&"ernal E&a!iner

AC(N)%*EDGEMENT

(ould like to e"tend my 'ratitude to Prof. *an'a Susheel +arriar for pro,idin' 'uidance and support durin' the course of project. She has been a 'reat help throu'h the makin' of the project. (ould like to thank the -ni,ersity of Mumbai for 'i,in' me the opportunity to (ork on such a rele,ant topic. (ould also like to thank the colle'e faculties. the librarian and the Principal /r. T. P. Madhu 0air for their help and others (ho are indirectly responsible for the completion of this project. n addition her full support. /ateMumbai (ould like to take this opportunity to thank our M.Com Coordinator Prof. /r. 0eha *oel for bein' there al(ays to 'uide me and for e"tendin'

))))))))))))))))))))))))))))))) #i na"ure of #"uden" (Pri+an,a #. #har!a)

INDEX

C+,-./ 0 1

P,0.1234,0 I6.0o732.1o6 A8o3 .+/ To-12 1.1 Introd#ction 1.( /efination 1.+ Marketin% Strate%y 1.0 Marketin% Mi& 03PS 1.5 $b ective of the st#dy 1.6 7esearch Methodiolo%y I69o0m,.1o6 A8o3. P/-:12o (.1 Ind#stry Profile (.( Company Profile (.+ 9istory (.0 Mission < =ision < Its Philosophy (.5 Pepsico In India (.6 $vervie- of Pepsico In India M,0;/.165 M1< S.0,./5= o9 P/-:12o +.1 Marketin% Strate%y of Pepsico +.( Marketin% Mi& In Pepsico +.+ Marketin% System +.0 Performance -ith P#rpose +.5 Se%ment of Market +.6 Pepsico Positionin% +.: S-ot "nalysis +.; Concl#sion +.1) >iblio%raphy CHAPTER -% INTRODUCTION ABOUT THE TOPIC

P,5/ No.

1 1 ( (*+ +*0 0 5*6 8 :; 1)*1+ 1+*10 10*(1 (( ((*(0 (0*(8 (8*(; (;*+1 +1*+( ++*+0 +5 +6

&

%.% INTRODUCTION 1Marketin% deals -ith identifyin% and meetin% h#man and social needs. $ne of the shortest definitions of marketin% are 1meetin%s needs profitably.2 ,he (1st cent#ry3s the era of "dvertisin%, Marketin% and Sales Prod#ction4 Marketin% is to convert social needs into 5

profitable opport#nities. "s it is said 1Marketin% thinkin% starts -ith the h#man needs and -ants2. "part from basic necessities of air, -ater, shelter and clothin%, every person has stron% desire for recreation and entertainment. ,hey have stron% preference for partic#lar brand of basic and services. Marketin% serves as the link bet-een the society?s needs and its pattern of Ind#strial response. >evera%e ind#stry is one of the fast %ro-in% ind#stries in India. @e can divide >evera%es into t-o sections i.e. "lcoholic < Aon*alcoholic. ,hen on* alcoholic drinks are soft drinks that can be f#rther classified Cola, Bemon, $ran%e, Man%o and "pple se%ment. %.# DEFINATION "ccordin% to me marketin% means, p#sh the prod#ct to the market < p#ll the c#stomer to-ards the b#siness. @e can say that the main aim of the marketer is to convert the -ant of the c#stomer to the need of the c#stomer. !,h#s marketin% ob is to convert societal needs into profitable opport#nities. 9ence, Marketin% occ#pies an important position in the or%aniCation of a b#siness #nit. It is one of the important line activities of b#siness operation. It consists of the o-nership of %oods. Doods are not complete prod#cts #ntil they are in the hands of the c#stomer. It is the process by -hich prod#cts are made available to the #ltimate cons#mers from their point of ori%in. It consists of all those activities, -hich are meant to ens#re the flo- of %oods < services from the prod#cer to the cons#mer. ,herefore, marketin% thinkin% m#st start -ith a crystalliCation of needs of cons#mer se%ment of -hich the efforts -ill #ltimately be aimed. In terms of needs, the prod#ct or service m#st be developed or improved so that #ltimately the prod#ct satisfies s#ch needs of the cons#mer se%ment involved. ,oday marketer, have to take to#%h decisions beca#se today3s market place is venomo#sly more comple&. /omestic markets, at one time safe from forei%n invaders are no- the happy h#ntin% %ro#nds of %iant %lobal corporation as -ell as %lobal niche specialists. Ma or strides in technolo%y have considerably shortened time < distance. Ae- prod#cts are la#nched < astonishin% pace are available -orld-ide in a short time. Comm#nicatin% ones media are proliferatin% ne- distrib#tion channels < formats keep appearin%. Competitors are every-here < h#n%ry.

%.& M,0;/.165 S.0,./5=

6

,he field of marketin% strate%y encompasses the strate%y involved in the mana%ement of a %iven prod#ct. " %iven firm may hold n#mero#s prod#cts in the marketplace, spannin% n#mero#s and sometimes -holly #nrelated ind#stries. "ccordin%ly, a plan is reE#ired in order to effectively mana%e s#ch prod#cts. Fvidently, a company needs to -ei%h #p and ascertain ho- to #tiliCe its finite reso#rces. Gor e&ample, a start*#p car man#fact#rin% firm -o#ld face little s#ccess sho#ld it attempt to rival ,oyota, Gord, Aissan, Chevrolet, or any other lar%e %lobal car maker. Moreover, a prod#ct may be reachin% the end of its life*cycle. ,h#s, the iss#e of divest, or a ceasin% of prod#ction, may be made. Fach scenario reE#ires a #niE#e marketin% strate%y. Bisted belo- are some prominent marketin% strate%y models.

%.4 M,0;/.165 M1< > 4P: OF MARKETING!

Marketin% mi& is a by*prod#ct of c#stomer oriented marketin% approach. "fter identifyin% the market < %atherin% the basic information abo#t it, the ne&t step in the direction of market pro%rammin% is to decide #pon the instr#ments < the strate%y for meetin% the needs of the c#stomers < challen%es of rival sellers. A22o07165 .o '.J. S.,6.o6, ! Marketin% mi& is a combination of fo#r elements s#ch as prod#ct, pricin% str#ct#re, distrib#tion system < promotional activities #sed to satisfy the needs of an or%aniCation3s tar%et market < at the same time achieves its marketin% ob ectives. Fvery b#siness enterprise has to determine its marketin%*mi& for the satisfaction of the needs of the c#stomers. Marketin% mi& represents a blendin% of decision in fo#r areas 8

prod#ct, pricin%, promotion < physical distrib#tion. ,hese elements are inter*related, beca#se decision in one area #s#ally affects action in the others. Marketin% mi& is marketin% mana%er3s instr#ment for the attainment of marketin% %oals. It is composed of fo#r in%redients, i.e., (i) Prod#ct (ii) price (iii) promotional activities (iv) distrib#tion. ,hese elements constit#te the core of marketin% system of a firm. " marketin% mana%er implements his strate%ies < policies thro#%h these instr#ments. Marketin% mi& represents a blendin% of fo#r elements namely prod#ct, price, promotion < distrib#tion. /etermination of marketin% mi& is an important decision -hich the marketin% mana%er has to take. ,he basic p#rpose of marketin% mi& is to satisfy the needs < -ants of the c#stomer in most effective manner. "s the needs of c#stomers < the environmental factors chan%e, marketin% mi& is also chan%ed. %.? OBJECTI(E OF THE STUDY ,o kno- the sales promotion tools #sed by PepsiCo Company.

,o kno- abo#t the sales promotion impacts on sale of the prod#ct of PepsiCo Company in C,C.

,o find o#t the best promotional tool preferred by the retailers.

,o kno- the peak periods of sales promotion activities.

,o analyCe the stren%th < -eakness of PepsiCo.

,o determine the standard of sales < services < p#blic relation.

%.@ RESEARCH METHODOLOGY> S/2o67,0= 7,.,> Secondary data collected from the p#blished ma%aCines and -ebsites to collect the data. ,he secondary data is collected from the follo-in% so#rces. >#siness ma%aCines Ho#rnals P#blished books @ebsite

CHAPTER A# INFORMATION ABOUT PEPSICO #.% INDUSTRY PROFILE

Gast movin% cons#mer %oods (GMCD), are prod#cts that are sold freE#ently at relatively locost. ,ho#%h the absol#te profit made on GMCD prod#cts is relatively small, they %enerally sell in lar%e E#antities, so the c#m#lative profit on s#ch prod#cts can be lar%e. F&amples of GMCD %enerally incl#des a -ide ran%e of freE#ently p#rchased cons#mer prod#cts s#ch as soft drink, toiletries, soap, cosmetics, toothpaste and po-ders, deter%ents, It also incl#des pharmace#ticals, cons#mer electronics, packa%ed food prod#cts, altho#%h these are often cate%oriCed separately. So9. 7016;: 1673:.0=> ,he soft*drink ind#stry comprises companies that man#fact#re nonalcoholic bevera%es, carbonated mineral -aters or concentrates and syr#ps for the man#fact#re of carbonated bevera%es. Aat#rally occ#rrin% b#bblin% or sparklin% mineral -aters have been famo#s for tho#sands of years* the ancient Dreeks believed that s#ch -aters had medicinal properties and bathed in them re%#larly, the 7omans established resorts aro#nd mineral sprin%s thro#%ho#t F#rope. In the 15))s the villa%e of Spa in >el%i#m became very famo#s for its -aters, -hich by the early 16))s -ere sold, in bottles, as far a-ay as Bondon, Fn%land. /evelopment of the first man*made carbonated -ater is credited to Hoseph Priestley, the >ritish scientist -ho discovered o&y%en. In year 188( he invented a method of Ip#shin%' carbon dio&ide into -ater by dissolvin% it #nder hi%h press#re, th#s creatin% fairly lon%*lastin% b#bbles. ,he techniE#e led to development of the soft*drink ind#stry. >y the very be%innin% of the 1;th cent#ry, carbonated -ater -as bein% made commercially in Grance and Aorth "merica, shortly thereafter4 flavors -ere added to enliven the taste. In the1:()s, small carbonated bottlin% operations -ere established in Canada, prod#cin% carbonated drinks in refillable bottles that -ere merchandised as medicinal eli&irs, tonics. ,he main principle of Ip#shin%I carbon dio&ide is still #sed, b#t no- the -ater is first p#rified in a process kno-n as Ipolishin%.I Cooled carbon dio&ide is then in ected at the press#res of (85*55) kilopascals. Some of the early drinks bottled in Canada -ere called >irch >eer, Din%er >eer, So#r Bemon, Aone*S#ch Soda @ater. ,he first carbonated bevera%e bottles -ere sealed -ith corks held ti%htly in place -ith a -ire bindin%. >eca#se they had to be stored neck do-n so that the cork -o#ld not dry and allo- carbonation to leak 1)

a-ay, they -ere man#fact#red -ith ro#nded bottoms. ,he 9#tcheson Sprin% Stopper replaced s#ch clos#res. ,he cro-n cap -as introd#ced in 1;)5 and improved versions are still -idely #sed, altho#%h they are %rad#ally bein% replaced, especially on lar%er containers, -ith enclosable scre- caps. $ther packa%in% innovations since the mid*1;6)s incl#de canned carbonated bevera%es and no ret#rnable %lass bottles and containers made from ri%id plastics. 9o-ever, an effort is bein% made, often thro#%h provincial le%islation, to increase the #se of the ret#rnable %lass containers. ,he ind#stry is re%#lated by federal and provincial a%encies, three of the most important bein% C$ASJMF7 "A/ C$7P$7",F "GG"I7S (it is responsible for the Cons#mer Packa%in% and Babelin% "ct), 9F"B,9 C"A"/" (-hich administers both the Good and /r#%s "ct) and Fnvironment Canada (-hich foc#ses on environmental matters).,he introd#ction of diet*carbonated bevera%es has totally chan%ed the ind#stryKs profile. Many years a%o, in response to increasin% cons#mer diet conscio#sness, the ind#stry introd#ced the first s#ccessf#l s#%ar*free diet drinks. >#t here E#estions -ere raised abo#t the safety of this additive and, based on e&istin% scientific data4 9ealth Canada banned its #se in Canadian commercial G$$/S "A/ >F=F7"DFS. ,his decision, estimated to have cost the ind#stry more than L18 million, -as a setback to diet*drink development. Ao-, a ne- s#%ar*free additive, aspartame, has been approved for the #se in diet soft drinks, and the cyclamate sit#ation is not e&pected to rec#r beca#se aspartame consists of amino acids, -hich occ#r nat#rally. H#st before the saccharin ban in 1;88, diet drinks acco#nted for abo#t 1)M of the soft*drink market, follo-in% the ban the diet share dropped to abo#t +M, consistin% of bevera%es partially s-eetened -ith the small amo#nts of s#%ar. In the year 1;:(, the first f#ll year that aspartame -as #sed in Canada, diet drinks increased by 16.(5M of total soft*drink sales, -hile the total soft*drink ind#stry %re- 1)M.In 1;:8 total soft*drink sales increased 8.+M over 1;:6, -hile diet soft*drink sales increased by 1(.8M. ,his sin%le development has enco#ra%ed the stron% %ro-th in the ind#stry. #.# COMPANY PROFILE PepsiCo is one of the lar%est GMCD companies there is that is en%a%ed in the food, bevera%e, and snack ind#stries. PepsiCo is en%a%ed in the snack food, soft drink, #ice, and fast food franchise b#sinesses. ,he Company, thro#%h its s#bsidiaries, markets, sells and distrib#tes vario#s snacks in the Jnited States and internationally, man#fact#res concentrates of Pepsi, 11

Mo#ntain /e- and other brands for sale to franchised bottlers in the JS and international markets and prod#ces, markets, sells and distrib#tes #ices #nder several ,ropicana trademarks in the Jnited States and internationally. PepsiCo?s domestic snack food b#siness is cond#cted by the Grito*Bay Aorth "merica, and its international snack food b#siness is cond#cted thro#%h Grito*Bay International. ,he CompanyKs soft drink b#siness operates as the Pepsi*Cola Company and is comprised of t-o b#siness #nits one is Pepsi*Cola Aorth "merica and Pepsi*Cola International. In /ecember ())), the Company anno#nced an a%reement #nder -hich a s#bsidiary of the PepsiCo -ill mer%e -ith N#aker $ats Company, and N#aker -ill become a -holly o-ned s#bsidiary of the PepsiCo. N#aker is a lar%e -orld-ide marketer of foods and bevera%es. ,he proposed mer%er is s#b ect to the certain closin% conditions, incl#din% approval by shareholders of both companies and re%#latory approvals. ,he transaction is e&pected to close in the first half of ())). PepsiCo is also operatin% several food franchises incl#din% PiCCa 9#t, OGC, and ,aco >ell etc. P/-:1Co- T+/ P,0/6. Com-,6=> PepsiCo is one of the -orldKs lar%est food and bevera%e companies. ,he companyKs principal b#sinesses incl#de %. F01.o-L,= :6,2;: #. P/-:1-Co4, 8/B/0,5/: &. G,.o0,7/ :-o0.: 7016;: 4. T0o-12,6, C312/: ?. D3,;/0 Foo7

#.& P/-:1Co M14/:.o6/:> ())5, PepsiCo, Ba#nches Pepsi Bimon in Per# ())5, PepsiCo India re*la#nches Mirinda cold drink ())6, ,ropicana deb#ts ,ropicana P#re a ne- line of 1))M premi#m #ices

1(

())6, Ms. Indra Aooyi named Chief F&ec#tive $fficer of PepsiCo as of $ctober 1,())6 ())6, Pepsi si%ns five*year sponsorship rene-al -ith Ma or Bea%#e >aseball Properties makin% Pepsi the I$fficial Soft /rink of Ma or Bea%#e >aseballI ())8, "E#afina la#nches "E#afina "live * a lo- calorie, vitamin*enhanced -ater bevera%e ())8, ,ropicana la#nches ,he ,ropicana Gr#it SE#eeCe, a ()*calorie drink -ith real ,ropicana fr#it #ice ())8, Pepsi la#nches I/esi%n $#r Pepsi CanI Aational Promotion ())8, ,he Indra Aooyi receives the $#tstandin% "merican by Choice "-ard ())8, PepsiCo makes in Gort#ne ma%aCineKs K1)) >est M>" FmployersK list ())8, /iet Pepsi Ba#nches in Ae- Book, Ae- "d Campai%n and Ae- "ttit#de * /iet Pepsi3s IMore Cola ,asteI ())8, Mo#ntain /e- Jnveils #niE#e, limited edition al#min#m bottles ())8, PepsiCo named a ())8 @orkin% Mother K>est Company for M#ltic#lt#ral @omenK ())8, Pepsi -ins @ebby "-ard for its e&ec#tion of the I>est Sports @ebsiteI ()):, Grito*Bay ,#rkey b#ilds the -orldKs first or%anic -aste treatment facility ()):, PepsiCo honored by the Fnvironmental Protection "%ency as -ater efficiency leader ()):, PepsiCo reco%niCed as the Good < >evera%e Packa%in% ma%aCineKs ()):>evera%e Packa%er of the Pear ()):, Gorbes names PepsiCo amon% its K>est >i% CompaniesK

());, PepsiCo is named to the K>est Companies for M#lti C#lt#ral @omenK list by Working Mother Ma%aCine ());, Pepsi -ins KGootball Promoter of the PearK a-ard in Ai%eria for its involvement -ith the development of the %rassroots football 1+

());, PepsiCo International introd#ces -orld first non*alcoholic, flavored malt drink, >ario, into Sa#di market ());, PepsiCo is listed in the top () KIdeal Fmployer M>" 7ankin%K in Fortune ma%aCine ());, PepsiCo introd#ces three ne- prod#cts in marketQPepsi Aat#ral, Pepsi ,hro-back and Mo#ntain /e- ,hro-back, all s-eetened -ith nat#ral s#%ar ());, PepsiCo India la#nches ,he AimbooC by 8Jp, a bevera%e inspired by India3s favorite lemonade drink ());, PepsiCo introd#ces the first climate*friendly vendin% machines to the J.S. ());, "E#afina la#nches the Fco*Gina >ottle, the li%htest -ei%ht bottle in the market. ()1), Grito*Bay commits to makin% 5)M of its prod#ct portfolio made -ith all nat#ral in%redients. ()1), ,ropicana introd#ces ,rop5) Garm stand "pple. ()11, ,in%yi 9oldin% and PepsiCo enter into a%reement to form strate%ic alliance in China ()11, PepsiCo Go#ndation e&pands commitment to @ater.or% -ith L: Million contrib#tion to scale K@ater CreditK across India ()1(, /iet Mo#ntain /e-, >risk and Starb#cks ready*to*drink bevera%es oin PepsiCo3s portfolio of billion*dollar brands, brin%in% the total to (( ()1(, PepsiCo Potato Chip >rands s#rpass L1) billion in %lobal retail sales ()1(, Pepsi la#nches first*ever %lobal campai%n, IBive Gor Ao-I.

#.4 M1::1o6 ,67 (1:1o6>

10

M1::1o6> $#r mission is to be the -orldKs premier cons#mer Prod#cts Company foc#sed on convenient foods and bevera%es. @e seek to prod#ce financial re-ards to investors as -e provide opport#nities for %ro-th and enrichment to o#r employees, o#r b#siness partners and the comm#nities in -hich -e operate. "nd in everythin% -e do, -e strive for honesty, fairness and inte%rity. (1:1o6> IPepsiCoKs responsibility is to contin#ally improve all aspects of the -orld in -hich -e operate *Fnvironment, social, economic * creatin% a better tomorro- than today.I $#r vision is p#t into action thro#%h pro%rams and a foc#s on environmental ste-ardship, activities to benefit society, and a commitment to b#ild shareholder val#e by makin% PepsiCo a tr#ly s#stainable company. P/09o0m,62/ E1.+ P30-o:/> "t PepsiCo, -e are committed to achievin% b#siness and financial s#ccess -hile leavin% appositive imprint on the society R deliverin% -hat -e call Performance -ith P#rpose. $#r approach to s#perior financial performance is the strai%htfor-ard R drive shareholder val#e. >y addressin% social and the environmental iss#es, -e also deliver on o#r p#rpose a%enda, -hich consists of the h#man, environmental, and talent s#stainability. 15

P/-:1Co (,43/: FP+14o:o-+=> $#r =al#es < Philosophy are a reflection of the socially and environmentally responsible company -e aspire to be. ,hey are the fo#ndation for the every b#siness decision -e make. Comm1.m/6.>

@e are committed to deliverin% the s#stained %ro-th thro#%h empo-ered people actin% responsibly and b#ildin% tr#st. S3:.,16/7 G0oE.+ is f#ndamental to motivatin% and meas#rin% o#r s#ccess. $#r E#est for s#stained %ro-th stim#lates innovation, places a val#e on res#lts, and helps #s #nderstand -hether todayKs actions -ill be contrib#te to o#r f#t#re. It is abo#t the %ro-th of people and company performance. It prioritiCes both makin% a difference and %ettin% the thin%s done. Em-oE/0/7 P/o-4/ means -e have the freedom to act and think in -ays that -e feel -ill %et the ob done, -hile adherin% to processes that ens#re proper %overnance and bein% mindf#l of company needs beyond o#r o-ns. R/:-o6:18141.= ,67 T03:. forms the fo#ndation for the healthy %ro-th. @e hold o#rselves both personally and corporately acco#ntable for everythin% -e do. @e m#st earn the confidence others place in #s as individ#als and as a company. >y actin% as %ood ste-ards of the reso#rces entr#sted to #s, -e stren%then that tr#st by -alkin% the talk and follo-in% thro#%h on o#r commitment to s#cceedin% to%ether. G317165 P01621-4/:> @e #phold o#r commitment -ith si& %#idin% principles. @e m#st al-ays strive toS

16

C,0/ 9o0 o30 23:.om/0:* o30 2o6:3m/0: ,67 .+/ Eo047 E/ 41B/ 16 . -e are driven bathe intense, competitive spirit of the marketplace, b#t -e direct this spirit to-ard the sol#tions that benefit both o#r company and o#r constit#ents. $#r s#ccess depends on the thoro#%h #nderstandin% of o#r c#stomers, cons#mers and comm#nities. ,o foster this spirit of %enerosity, -e %o the e&tra mile to sho- -e care.

S/44 o64= -0o732.: E/ 2,6 8/ -0o37 o9. ,he tr#e test of o#r standards is o#r o-n ability to cons#me and the personally endorse the prod#cts -e sell. $#r confidence helps ens#re the E#ality of the prod#cts, from the moment -e p#rchase in%redients to the moment it reaches the cons#merKs hand.

S-/,; E1.+ .03.+ ,67 2,67o0. @e tell the -hole story, not #st -hat convenient too#r individ#al %oals are. In addition to bein% the clear, honest and acc#rate, -e are responsible for ens#rin% o#r comm#nications are #nderstood.

B,4,62/ :+o0. ./0m ,67 4o65 ./0m. In every decision, -e -ei%h both short*term and lon%*term risks and benefits. Maintainin% this balance helps s#stain o#r %ro-th and ens#res o#r ideas and the sol#tions are relevant both no- and in the f#t#re.

'16 E1.+ 71B/0:1.= ,67 16243:1o6. @e embrace people -ith diverse back%ro#nds, traits and the -ays of thinkin%. $#r diversity brin%s ne- perspectives into the -orkplace and enco#ra%es innovation, as -ell as the ability to identify the ne- market opport#nities.

R/:-/2. o.+/0: ,67 :322//7 .o5/.+/0. $#r m#t#al s#ccess depends on the m#t#al respect, inside and o#tside the company. It reE#ires people -ho are capable of -orkin% to%ether as part of a team or informal collaboration. @hile o#r company is b#ilt on individ#al e&cellence, -e also reco%niCe the importance and val#e of team-ork in t#rnin% o#r %oals into accomplishments

T+/ P/-:1Co F,m14=> 18

Meet the three ma or divisions of the PepsiCo familyS PepsiCo "mericas >evera%es. PepsiCo "mericas Goods. PepsiCo International.

#.? PEPSICO INDIA INTRODUCTION> Pepsi Co entered India in 1;:; and in the short span of a little more than a decade it became the co#ntryKs lar%est sellin% soft drinks company. ,he Company has invested heavily in India makin% it one of the lar%est m#ltinational investors. ,he %ro#p has b#ilt an e&pansive bevera%e, snack food and e&ports b#siness and to s#pport the operations are the %ro#p3s of 0+ bottlin% plants in India, of -hich 15 are company o-ned and (: are franchisee o-ned. PepsiCo stays committed to providin% its cons#mers -ith best E#ality bevera%es. Its diverse portfolio of brands incl#de the fla%ship cola brand Pepsi, /iet Pepsi, 8Jp, Mirinda, Mo#ntain /e-, Slice fr#it drink, ,ropicana brand 1))M fr#it #ices in the vario#s flavors, "E#afina packa%ed drinkin% -ater, the Datorade pl#s local brands Behar Fvervess Soda and /#kes Bemonade and Man%ola. PepsiCo is also a dominant player in snack food se%ment in India. PepsiCoKs snack food company Grito*Bay is the leader in the branded potato chip market. It man#fact#res Bay3s Potato Chips4 Cheetos e&tr#ded snacks, Jncle Chips, O#rk#re and Behar brands, and N#aker $ats. PepsiCo is one of the lar%est MAC e&porters in the India and its e&port b#siness consists of three cate%oriesS a%ri b#siness, commodities and Pepsi system sales. PepsiCo has made the si%nificant investments -ith the P#n ab "%ric#lt#re Jniversity to develop the comprehensive a%ro*technolo%y pro%ram that has helped tho#sands of the farmers across India improve the yield of their farms and the E#ality of their a%ric#lt#ral prod#cts. PepsiCo has levera%ed its kno-led%e in the contract farmin% to develop sea-eed c#ltivation in the ,amil Aad# and has partnered -ith the Dovernment of P#n ab to help farmers of the state thro#%h the #tiliCation of developed technolo%y for the citr#s farmin%. "s part of its s#stainable development initiatives, PepsiCo India has been a committed leader in the 1:

promotion of rain-ater harvestin%, -ater conservation recyclin% and red#ction of effl#ent dischar%e. PepsiCo has also established the Cero -aste centers and PF, recyclin% s#pply chains and assisted victims of nat#ral disasters. PepsiCo stays dedicated in its endeavor to develop the comm#nity o#treach pro%rams by s#pportin% r#ral -ater s#pply schemes, administerin% medical camps in villa%es, providin% comp#ters to r#ral schools and creatin% opport#nities for -omen in r#ral areas thro#%h vocational trainin% as an alternate means of the livelihood. #.@ O(ER(IE' OFPEPSICO INDIA P/-:1Co m1::1o6> I,o be the -orldKs premier cons#mer Prod#cts Company foc#sed on the convenience food and bevera%es. @e seek to prod#ce healthy financial re-ards to the investors as -e provide opport#nities for %ro-th and enrichment to o#r employees, o#r b#siness partners and the comm#nities in -hich -e operate and in everythin% -e do, -e strive for honesty, fairness and the inte%rity. P/-:1Co 16 I671,S PepsiCo has established its b#siness operations in India in 1;:; and has %ro-n to become the one of the co#ntry3s leadin% food and the bevera%e companies. $ne of the lar%est m#ltinational investors in the co#ntry, PepsiCo has established a b#siness, -hich aims to serve the lon% term dynamic, needs of Indian cons#mers. Initially PepsiCo has oint vent#re -ith the P#n ab %overnment*o-ned P#n ab "%ro Ind#strial $r%aniCation and the =oltas India Bimited. ,his oint vent#re marketed and sold Behar Pepsi #ntil 1;;1, -hen the #se of forei%n brands -as allo-ed, PepsiCo bo#%ht o#t its partners and ended the oint vent#re in 1;;0. $thers claim that firstly Pepsi -as banned from the import in India, in 1;8), for havin% ref#sed to release the list of its in%redients and in 1;;+, the ban -as lifted, -ith Pepsi arrivin% on the market shortly after-ards. ,hese controversies are a reminder of IIndiaKs sometimes acrimonio#s relationship -ith the h#%e m#ltinational companies.I Indeed, some ar%#e that PepsiCo and Coca Cola company have Ibeen ma or tar%ets in part beca#se they are -ell*kno-n forei%n companies that dra- plenty of the attention.' In ())+, the Central for Science and Fnvironment, a non %overnmental or%aniCation Ae- /elhi, said that aerated -aters prod#ced by soft drinks man#fact#rers in 1;

India, incl#din%m#ltinational %iants PepsiCo and tested prod#cts incl#ded Coke, Mirinda, 8Jp, ,h#msJp, Ganta, and Sprite. CSF fo#nd that the Indian prod#ced PepsiKs soft drink prod#cts had+6 times the level of pesticide resid#es permitted #nder the F#ropean Jnion re%#lations, Coca ColaKs +) times. CSF said that it had tested the same prod#cts in the JS and fo#nd no s#ch resid#es. 9o-ever, this -as the F#ropean standard for -ater, not for the other drinks. Ao la- bans the presence of pesticides in drinks in India. ,he Coca*Cola Company and PepsiCo an%rily denied alle%ations that their prod#cts are man#fact#red in India contained to&in levels far above the norms permitted in developed -orld. >#t an Indian parliamentary committee, in ())0, backed #p CSFKs findin%s and by a %overnment*appointed committee, is no- tryin% to develop the -orlds first pesticides standards for soft drink company. Coke and PepsiCo opposed the move, ar%#in% that lab tests are not reliable eno#%h to detect min#te traces of pesticides in comple& drinks. "s of ())5, ,he Coca*Cola Company and the PepsiCo to%ether hold ;8M market share of soft drink sales in the India. PepsiCo has also been acc#sed by the P#th#ssery panchyat in the Palakkda district in the Oerala, India, of practicin% I-ater piracyI d#e to its role in the e&ploitation of %ro#nd -ater reso#rces res#ltin% in the scarcity of drinkin% -ater for the panchayatKs residents, -ho have been press#rin% the %overnment to close do-n the PepsiCo #nit in the villa%es. In the year ())6, the CSF a%ain fo#nd that soda drinks, incl#din% both the Pepsi and the Coca*Cola, had hi%h levels of pesticides in their drinks. >oth the PepsiCo and ,he Coca*Cola Company maintain that their drinks are safe for the cons#mption and have p#blished in ne-spaper advertisement that say that pesticide levels in their prod#cts are less than those in other foods s#ch as tea, fr#it and dairy prod#cts. In the Indian state of Oerala sales and prod#ction of Pepsi*Cola, alon% -ith other soft drinks, -as banned by the state %overnment in ())8, b#t this -as reversed by the Oerala 9i%h Co#rt merely a month later. Give other Indian states have anno#nced a partial ban son the drinks in the schools, colle%es and the hospitals. PepsiCo India and its partners have invested more than JS/1 billion since the company -as established in the co#ntry. PepsiCo India provides the direct and indirect employment to 15),))) people incl#din% s#ppliers and the distrib#tors. PepsiCo no#rishes cons#mers -ith a ran%e of the prod#cts from treats to healthy eats, -hich deliver oy as -ell as n#trition and, %ood taste. PepsiCo Indians e&pansive portfolio incl#des the iconic refreshment bevera%es Pepsi, 8 JP, Mirinda and Mo#ntain /e-, in addition to lo- calorie options s#ch as the /iet ()

Pepsi, hydratin% and n#tritional bevera%es s#ch as the "E#afina drinkin% -ater, isotonic sports drinks Datorade, ,ropicana1))M fr#it #ices, and #ice based drinks, ,ropicana Aectars, and Slice. Bocal brands Behar Fvervess Soda, /#kes Bemonade and Man%ola add to the diverse ran%e of the brands. PepsiCo3s foods company, is the leader in the branded salty snack market and all the Grito* Bay prod#cts are free of trans*fat and the MSD. It man#fact#res Bays Potato Chips JncleChipps and the traditional snacks #nder the O#rk#re and Behar brands. ,he company si%h fiber breakfast N#aker $ats, and lo- fat and roasted snack options enhance the healthf#l choices available to the cons#mers. Grito Bays core prod#cts, O#rk#re, JncleChipps and Cheetos are cooked in 7ice >ran $il to si%nificantly red#ce sat#rated fats and all of its prod#cts contain vol#ntary n#tritional labelin% on their packets. ,he %ro#p has b#ilt an e&pansive bevera%e and foods b#siness. ,o s#pport its operations, PepsiCo has total of 0( bottlin% plants in India, of -hich 1+ are the company o-ned and (;are the franchisee o-ned. In addition to, PepsiCo Grito Bay foods division has three state*of*the*art plants. PepsiCo3s b#siness is based on its s#stainability vision makin% tomorro- better than the today. PepsiCo3s commitment to the livin% by this vision every day is visible in its contrib#tion to the co#ntry, cons#mers and the farmers. So9. D016; M,0;/. 16 I671,> India is one of the top most five markets in terms of %ro-th of the soft drink market. ,he per capita cons#mption of the soft drinks in the co#ntry is estimated to be aro#nd si& bottles per ann#m in the year ())+. It is very lo- compared to the correspondin% fi%#res in JS (6))T bottles plant per ann#m).,he ma or players in the soft drinks market in India are PepsiCo and Coca*Cola, like else-here in the -orld. Coca Cola acE#ired the n#mber of local brands like Bimca, ,h#msJp -hen it entered in Indian market for the second time. Pepsi Co3s soft drink portfolio also consists of the Miranda and 8Jp alon% -ith the Pepsi. ,he market share of each of the company is more or less same, tho#%h there is a conflict in the estimate E#oted by the different so#rces. ,he ma or in%redient in the soft drink is -ater. It constit#tes close to ;1M of the soft drink content. "dded to this, the drink also contains s-eeteners, Citric "cid, Malice acid, Color, Preservative, "nti $&idant.

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T+/ P/-:1Co F,m14= Meet the fo#r ma or divisions of the PepsiCo familyS PepsiCo "mericas >evera%es, PepsiCo "mericas Goods, PepsiCo F#rope, PepsiCo Middle Fast and "frica. 1. (. +. 0. PepsiCo "mericas >evera%es PepsiCo "mericas Goods PepsiCo F#rope PepsiCo "sia, Middle Fast < "frica

P/-:1Co Am/012,: B/B/0,5/: Pepsi -as fo#nded in 1:;: by Caleb >radham, a Ae- >ern, Aorth Carolina, dr#%%ist, -ho first form#lated Pepsi*Cola. ,oday, >rand Pepsi is part of a portfolio of bevera%e brands that incl#des carbonated soft drinks, #ices and #ice drinks, ready*to*drink teas and coffee drinks, isotonic sports drinks, bottled -ater and enhanced -aters. PepsiCo "mericas >evera%es (P">) has -ell kno-n brands s#ch as Mo#ntain /e-, /iet Pepsi, Datorade, ,ropicana P#re Premi#m, "E#afina -ater, Sierra Mist, M#%, ,ropicana #ice drinks, Propel, So>e, Slice, /ole, ,ropicana ,-ister and ,ropicana SeasonKs >est. In 1;;( P"> formed a partnership -ith ,homas H. Bipton Co. to sell ready*to*drink tea brands in the Jnited States. Pepsi*Cola also markets Grapp#ccino ready*to*drink coffee thro#%h a partnership -ith Starb#cks. ,ropicana -as fo#nded in 1;08 by "nthony 7ossi as a Glorida fr#it packa%in% b#siness. In 1;50 7ossi pioneered a paste#riCation process for oran%e #ice. Gor the first time, cons#mers co#ld en oy the fresh taste of p#re not*from*concentrate 1))M Glorida oran%e #ice in a ready*to*serve packa%e. ,he #ice, ,ropicana P#re Premi#m, became the companyKs fla%ship prod#ct. PepsiCo acE#ired ,ropicana, incl#din% the /ole #ice b#siness, in "#%#st 1;;:. So>e became a part of P"> in ())1. So>e man#fact#res and markets an innovative line of bevera%es incl#din% fr#it blends, ener%y drinks, dairy*based drinks, e&otic teas and other bevera%es -ith herbal in%redients. Datorade thirst E#encher sport drinks, -as acE#ired by ,he N#aker $ats Company in 1;:+ and became a part of PepsiCo -ith the mer%er in ())1. Datorade is the -orldKs first isotonic sports drink as is backed by 0) years of science. Created in 1;65 by researchers at the

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Jniversity of Glorida for the schoolKs football team, I,he Dators,I Datorade is no- the -orldKs leadin% sportKs drink. P/-:1 B/B/0,5/: Com-,6= $n Gebr#ary (6th, ()1), PepsiCo completed its mer%ers -ith P"S and P>D to stren%then its Aorth "merican bevera%e b#siness. ,he Aorth "merican bottlin% operations of P"S and P>D are no- an operatin% #nit of PepsiCo kno-n as Pepsi >evera%es Company. P>C operates in the Jnited States, Canada and Me&ico and encompasses appro&imately 85 percent of PepsiCoKs Aorth "merican bevera%e vol#me. P>CKs diverse portfolio incl#des some of the -orldKs most -idely reco%niCed bevera%e brands, incl#din% Pepsi, Mo#ntain /e-, Sierra Mist, "E#afina, Datorade, So>e, Bipton, and "mp Fner%y. P>C also man#fact#res and distrib#tes third*party brands in key local markets s#ch as /r Pepper, Cr#sh, 7ock Star and M#scle Milk. ,he operatin% #nit is headE#artered in @estchester Co#nty, Ae- Pork. 7ead more abo#t the Pepsi >evera%es Company. 1. (. PepsiCo "mericas Goods PepsiCo F#rope

PepsiCo "mericas Goods (P"G) is PepsiCoKs food and snack b#siness in Aorth and So#th "merica. Its portfolio of b#sinesses incl#des Grito*Bay Aorth "merica, N#aker Goods < Snacks, Sabritas, Damesa and Batin "merica Goods. Grito*Bay Aorth "merica In 1;+(, C.F. /oolin entered a small San "ntonio cafe and p#rchased a ba% of corn chips. Bittle did he dream this savory chip -o#ld become one of the nationKs most pop#lar snacksU Mr. /oolin learned that the man#fact#rer of the chips -as ea%er to sell his small b#siness, so he p#rchased the recipe, and be%an to sell G7I,$SV Corn Chips from his Model , Gord. Mean-hile, that same year, 9erman @. Bay be%an his potato chip b#siness in Aashville by deliverin% snack foods. Aot lon% after, Mr. Bay p#rchased the man#fact#rer, and the 9.@. Bay < Company -as formed. 9.@. Bay < Company became one of the lar%est snack food companies in the So#theast, and B"PKSV brand Potato Chips is still "mericaKs favorite potato chip. Pears later, in 1;61, the Grito Company and the 9.@. Bay Company mer%ed to become Grito*Bay, Inc. ,oday, Grito*Bay Aorth "merica makes some of the most pop#lar snacks in (+

the JS, incl#din% B"PKS and 7JGGBFS potato chips, /$7I,$S tortilla chips, ,$S,I,$S tortilla chips and dips, C9FF,$S cheese flavored snacks, G7I,$S corn chips, 7$B/ D$B/ pretCels, SJAC9IPS m#lti%rain snacks, C7"COF7 H"CO candy coated popcorn. D3,;/0 Foo7: No0.+ Am/012, ,he N#aker $ats Company -as formed in 1;)1 -hen several "merican pioneers in oat millin% came to%ether to incorporate. In 7avenna, $hio, 9enry /. Seymo#r and @illiam 9eston had established the N#aker Mill Company. ,he fi%#re of a man in N#aker clothes became the first re%istered trademark for breakfast cereal and remains the hallmark for N#aker $ats today. In Cedar 7apids, Io-a, Hohn St#art and his son, 7obert, and their partner, Deor%e /o#%las, operated the lar%est cereal mill of the time. Gerdinand Sch#macher, kno-n as I,he $atmeal Oin%,I had fo#nded Derman Mills "merican $atmeal Company in 1:56. Combinin% ,he N#aker Mill Company -ith the St#art and Sch#macher b#sinesses bro#%ht to%ether the top oats millin% e&pertise in the co#ntry as ,he N#aker $ats Company. ,he first ma or acE#isition of the company -as "#nt Hemima Mills Company in 1;(6, -hich is today the leadin% man#fact#rer of pancake mi&es and syr#p. Datorade -as acE#ired in 1;:+. In 1;:6, ,he N#aker $ats Company acE#ired the Dolden Drain Company, prod#cers of 7ice*"*7oni. Its brands today incl#de N#aker oatmeal, Bife and Capon Cr#nch ready*to*eat cereals, "#nt Hemima mi&es and syr#ps, and 7ice*"*7oni, Pasta 7oni and Aear Fast side dishes. PepsiCo mer%ed -ith ,he N#aker $ats Company in ())1. S,801.,: 9eadE#artered in Me&ico City, Sabritas is a leader in the Me&ican snack and f#n food market. Go#nded in 1;0+, Sabritas is reno-ned for the E#ality, variety and flavors of its prod#cts, and serves as the #mbrella brand #nder -hich PepsiCo markets Grito*Bay prod#cts in Me&ico, s#ch as Cheetos, Gritos, /oritos and 7#ffles. It is also the name brand for its o-n line of potato chips. "dditionally, the b#siness man#fact#res and markets several local brands s#ch as Cr# itos, P#ffers, "nchorites and Sabritones. Sabritas controls aro#nd :)M of the Me&ican snacks market. PepsiCo acE#ired Sabritas in 1;66.

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G,m/:, 9eadE#artered in Monterrey, Me&ico, Damesa is a %lobal leader in the cookies market, and Me&icoKs lar%est man#fact#rer of cookies. ,he company has offered its cons#mers a -ide variety of hi%h*E#ality prod#cts for every lifestyle, prod#cin% pastries, oats, cereals and other related prod#cts. It has prod#ction facilities in five states across Me&ico. "mon% its most s#ccessf#l brands are Marisa Damesa, Fmperador, "rcoiris, Mam#t, Chokiest, and MaiCoro. In 1;;), it -as acE#ired by PepsiCo. Batin "mericas Goods ,he Batin "mericas Goods b#siness incl#des operations in >raCil, "r%entina, Colombia, Per# and =eneC#ela. Its portfolio of brands incl#des %lobal snacks s#ch as BayKs, Cheetos, Gritos and /oritos, as -ell as local brands like B#cky snacks in >raCil. PepsiCo F#rope is the leadin% food and bevera%e company in F#rope employin% 0+,))) in the re%ion. ,he company has a presence in 05 co#ntries in F#rope and has a broad ran%e of offerin%s incl#din% Grito Bay Snacks, Pepsi*Cola bevera%es, Datorade sports drinks, ,ropicana #ices and N#aker foods. ,he company has invested over L+ billion in the re%ion over the last + years incl#din% the acE#isitions of Bebedyanasky, a pop#lar #ice company in 7#ssia, and Sandora, a Jkrainian #ice company. Some of the most pop#lar prod#cts in the re%ion incl#des @alkers Crisps, N#aker $ats, Pa7id%e, Pepsi, /iet Pepsi, Pepsi M"W, Pepsi 7"@, 8JP, Copella, /oritos, Datorade, 7ed Sky, = @ater, Planet B#nch, Bays, Cheetos, Smiths, /#yvis, Snack*a*Hacks, N#aker Cr#esli, BooCa, ,-istos, Solinki. ,he company has made lar%e investments in the re%ion in its Ihealthier for yo#I portfolio -hich incl#deS More than () million F#ros in a fla%ship F#ropean 7</ centre, -hich is dedicated to creatin% ne-, healthier snacks for the F#ropean market. In the JO alone, -eKve invested over 1:) million F#ros in makin% o#r prod#cts healthier, s#ch as @alkers crisps, -hich no- contain 8)M less sat#rated fat and #p to 55M less salt than they did five years a%o. Bo-er fat, baked Cheetos in ,#rkey (5

have introd#ced a ran%e of dry roasted n#ts -ith +)M less fat In the JO -e are abo#t to la#nch a K;; Calorie or less snacks ran%e Pepsi Ma&, no s#%ar, f#ll flavors soft drink in the JO and the Aordics

P/-:1Co A:1,* M1774/ E,:. F A9012, PepsiCo "sia, Middle Fast < "frica (!"MF"') makes, markets and sells a n#mber of leadin% snack food brands incl#din% Bay3s, O#rk#re, Chips, /oritos, Smith3s, Cheetos, 7ed 7ock /eli and 7#ffles, thro#%h consolidated b#sinesses as -ell as thro#%h no controlled affiliates. G#rther, either independently or thro#%h contract man#fact#rers, "MF" makes, markets and sells many N#aker*brand cereals and snacks. "MF" also makes, markets and sells bevera%e concentrates, fo#ntain syr#ps and finished %oods, #nder vario#s bevera%e brands incl#din% Pepsi, Mirinda, 8JP and Mo#ntain /e-. ,hese brands are sold to a#thoriCed bottlers, independent distrib#tors and retailers. 9o-ever, in certain markets, "MF" operates its o-n bottlin% plants and distrib#tion facilities. In addition, "MF" licenses the "E#afina -ater brand to certain of its a#thoriCed bottlers. "MF" also, either independently or thro#%h contract man#fact#rers, makes, markets and sells ready*to*drink tea prod#cts thro#%h an international oint vent#re -ith Jnilever (#nder the Bipton brand name).

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CHAPTER A & MARKETING MIX STRATEGY OF PEPSICO

&.% MARKETING STRATEGY AT PEPSICO>E,:./06 E30o-/* M/<12o* 2+16,* S,371 A0,81, ,67 I671, m,0;/.: +,B/ 6oE 8/2om/ .+/ +o.:-o.: 9o0 P/-:12o ,: .+/ 1620/,:165 54o8,4 ,7B/0.1:165 :.0,./51/: ,0/ /:2,4,./7. A: :32+* P/-:12o 6oE o-/0,./: 16 mo0/ .+,6 %)$ 2o36.01/: ,67 E1.+ &7G 54o8,4 m,0;/. :+,0/. P/-:12o 0/2o561H/: .+/ 6//7 .o 2,0/9344= 16./50,./ +15+ :.,67,07: 16 B,01o3: -0o2/::/: o9 :3--4= 2+,16 /:-/21,44= ,. .+/ 0/.,14 4/B/4. T+/ 2om-,6= :.01B/: 9o0 /<2/44/62/ :-/21912,44= 9o0 .+/ -0o732.: o0 80,67: ,: E/44 ,: -,2;,5165* m,0;/.165 ,67 ,7B/0.1:165. T+/ 0,.1o6,4/ 8/+167 .+1: 1: .+,. 23:.om/0: 7/:/0B/ 8/../0 I3,41.= -0o732.: ,67 :o I3,41.= 2o6.0o4: ,0/ 0/,41H/7 16 m,639,2.30165 ,67 8o..4165 -0o2/::* -,2;,5165 ,67 90om E,0/+o3:/: .o :.o0/ :+/4B/:. P/-:12o m,0;/.: 1.: -0o732.: o6 .+/ 8,:1: o9 4o2,41H,.1o6 -0o2/:: E+/0/16 4o2,4 8o..4/0: 7/./0m16/ E+12+ -0o732.: .o -,2. ,67 :/44 16 .+/10 ./001.o0= 8,:/7 o6 4o2,4 2o6:3m/0 7/m,67 ,67 o.+/0 m,0;/. 9,2.o0:. P/-:12o +,: 8,4,62/ o9 -0omo.1o6: ,67 2omm3612,./: .+0o35+ 2/4/801.= /67o0:/0: ,: E/44 ,: o6 .+/ I6./06/.* 6/E:-,-/0 ,67 :-o6:o0:+1-:. F16,44=* P/-:12o -0omo./: 1.: 80,67: 16 :3-/0m,0;/.: .+0o35+ ;//-165 71:2o36.: ,67 50/,. -01H/: .o 50,8 .+/ ,../6.1o6 o9 83=/0:.

&.# MARKETING MIX IN PEPSICO > ,he tools of marketin% mi& are combined in s#ch a manner that they %ive ma&im#m milea%e to the prod#ct from the factory to the cons#mer?s hand. P0o732. P012/ P4,2/ P0omo.1o6

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PRODUCT People satisfy their needs and -ants -ith prod#cts and services, a prod#ct is anythin% that can be offered to a market to satisfy a need or -ant* ,he concept of prod#ct is not limited to physical ob ects * anythin% capable of satisfyin% a need can be called a Prod#ct. 9aidri >evera%es is the company that has taken #p the franchise to prod#ce Pepsi for the area of Maharashtra and /elhi. ,he prod#ction capacity of the plant is to prod#ce 8+,))) cases of (0 bottles of (5)*ml. Gor this reason the company has three lines of prod#ction to f#lfill the ever*%ro-in% demand. Pepsi is one of the core prod#cts of the or%aniCation and the company p#ts in a lot of effort to retain its ima%e thro#%h its hi%hly professional team. ,he members of the or%aniCation -ork day and ni%ht makin% every possible effort to attain the or%aniCational %oals. PRICE Price is the amo#nt of money the c#stomers are -illin% to pay to obtain that partic#lar prod#ct. Providin% E#ality prod#cts at the lo-est possible price had al-ays been one of the main concerns of Pepsi. $ne of the -ays by -hich the company has been able to assist this effort is by increasin% the #se of ine&pensive and recyclable plastic bottles. ,he %overnment policy, at times, makes a lot of difference as the %overnment may increase the frei%ht char%es, the prices of %lass,or the prices of steel. ,h#s the overall price of the prod#ct also %ets affected. ,he price of Pepsi Cola is very reasonable as compared to other drinks and the Mana%ement makes every effort to make the prod#ct at the lo-est possible cost b#tthe hi%hest E#ality. Pepsi -ants its prod#ct to be available to all P7ICIAD S,7J,C,J7FS* PLACE Place incl#des the company activities that make the prod#ct available to tar%etcons#mers. Pepsi Cola is placed in the market accordin% to the e&tent of the tar%etmarket located in that (:

partic#lar %eo%raphical area. 9aidri >evera%es place their prod#ct in the market -ith the help of its indirect distrib#tion net-ork. ,he retail stores are spread all aro#nd the franchised area in order to ens#re the availability of the prod#ct all the year ro#nd. ,he ma or retail stores located in Maharashtra and /elhi are in the >l#e "rea, Hinnah S#per Market, S#per Market, and in almost every sector of Islamabad. ,he entire /FB9I Cantonment and the entire city as -ell have many retail o#tlets -here Pepsi is available in ab#ndance. ,he distrib#tion net-ork also -orks accordin% to the promotional campai%n or the season. Gor e&ample, in the cricket season the company tries to make the prod#ct available in areas -here Cricket is bein% played. Pepsi covers almost ;5M of total area. It sells thro#%h local retailers. It is available every-here

.PROMOTION Promotion means activities that comm#nicate the merits of the prod#ct in order to pers#ade the tar%et c#stomers to b#y it. Promotion plays a vital role in the s#ccessor fail#re of a prod#ct. Promotion of the ri%ht prod#ct at the ri%ht time is an ideal sit#ation for a company. Pepsi is one of those prod#cts on -hich the franchisers spend millions of /ollarsX7#pees for its promotion. 9aidri >evera%es invest a h#%e amo#nt of money on the promotional campai%ns of Pepsi. ,here are different -ays of promotin% a prod#ct thro#%h retailin%, personal sellin%, and advertisin%. ,he company stron%ly emphasiCes on advertisements as the other t-o methods area not m#ch effective in attractin% the attention of their tar%et a#dience. 9#%e amo#nt of money spend on advertisement on ,.=, Ma%aCines, "nd >anners. It sponsor sea-ard f#nctions and sports activities. &.& MARKETING SYSTEM P0o732.> !Pepsi' carbonated -ater, s#%ar, added flavor packa%e < drinkin% -ater. Introd#ction of Aat#ral color drink is on the cards. Po:1.1o6165>

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>esides retailin%, the company foc#ses on instit#tional sales, special event to make the prod#ct available for additional milea%e.

P012/> ,he company maintains a steady price d#e to ti%ht competition. It enco#ra%es more retail mar%in as compared to the competitors. 9o-ever, company does not believe in compromisin% the E#ality of the prod#ct. P0omo.1o6> Schemes < incentives are also %iven keepin% on eye on the competitive activity from time to time. Company has also introd#ced a cons#mer a-areness scheme to create better brand a-areness of the prod#ct. P384121.=> " company as promotional meas#re for val#e sale %ives p#blicity. "deE#ate point of p#rchase materials, adeE#ate display materials < participation in important local festival are also a part of promotional meas#re of the company. C+,66/4 o9 D1:.0183.1o6> /istrib#tors are appointed all over $rissa for marketin% the prod#ct. C#stomer e&ec#tives appointed by the company s#pport them. M,0;/.165 S.0,./5=> >esides stampin% the #rban market, the company3s foc#s is on penetration in the periphery r#ral area. T+/ M,639,2.30165 P0o2/:: > ,he process of man#fact#rin% of aerated -ater (Soft /rinks) < fr#it H#ice #nder PepsiCo >rand is divided into mainly five parts s#ch asS @ater ,reatment Syr#p Makin% >ottle @ashin% Gillin% Cro-nin% < Codin% ,estin% of the prod#ct

',./0 T0/,.m/6.> @ater ,reatment is very essential in soft drinks plant as the nat#re < E#ality of -ater varies from place to place. ,o set #niform < standard -ater the process of treatment is carried on. ,he -ater taken from bore -ell by the help of -ater p#mp < pipe lines are collected in a +)

stora%e tank -here is pre*chlorinated by chlorinate < then by the help of pipelines comes to a treatment tank called coa%#lator tank -here this -ater sol#tion of different stren%th of bleachin% po-der, ferro#s s#lphate, hydrate line are added thro#%h dosin% p#mp to red#ce alkalinity, hardness < kill the bacteria. " mechanical stirrer mi&es the chemical < then the s#spended -ater settles do-n as sl#d%e < clean -ater passes thro#%h retention tank. Grom this tank, the -ater passes thro#%h sand filter containin% fine sand < pebbles < carbon filter contains %ran#lar carbon < finally thro#%h -ater polisher, micron filter, J= lamp to ens#re clear < sanitary -ater for #se. G#rther -ater #sed in the bottle -asher < boiler needs softenin%. Gor this p#rpose the -ater from stora%e tank, after passin% thro#%h t-o filter beds containin% fine sand < %ran#lar carbon happens. ,hro#%h a bed of resin -here it is softened, this soft -ater is essential for #se in bottle -asher to red#ce scale formation inside the machine. S=03- M,;165 > Gor syr#p makin% of a partic#lar brand, collect E#antity of s#%ar, -ater activated carbon (Po-der) < 9yflo- s#per cell kno-n as filter aid are taken into a s#%ar dissolvin% tank -hich is specially desi%ned makin% a vac##m space to enter steam < also fitted by a motor -ith a%itator. S#%ar syr#p called ra- syr#p is prepared by developin% the s#%ar -ith contin#o#s stirrin% < heatin% by steam s#pplied by oil*fired boiler. ,his hot syr#p -ith the help of a p#mp is filtered thro#%h a filter press attach -ith a series of E#ality filter paper to separate o#t carbonated particles. Bo..4/ ',:+165> >ottle @ashin% is an important part in soft drink plant. ,he emptied d#rable < ret#rnable bottles are #sed < ret#rned from market in plastic crates are fed to bottle -ashin% machine. ,he machine do#ble end system -ith circ#lar chin to carry the bottles ca#stic soda, tri*sodi#m phosphate < sodi#m*%l#conate are added to the ca#stic tank filled in -ith -ater heated by steam s#pplied by the boiler. ,he empty bottles enter to the hot ca#stic tank in one end < after bein% cleaned by the hot ca#stic sol#tion < finally -ashed -ith -ater thro#%h spray* ets fitted are dischar%ed in other end. ,hen -ashed bottles pass on conveyor chain a%ainst laminated board for f#rther inspection in the direction fillin% machine. F144165> Ginished syr#p <treated -ater line are connected to a dosin% p#mp -hich mi&es syr#p < -ater -ith the ratio of 1S5 < syr#p mi&ed -ith -ater entered to carbonated tank to mi& -ith carbon dio&ide %as are preserved in cylinder for #se. ,he cylinders are connected +1

thro#%h C$( manifold tank to #se reE#isite E#antity of %as. ,he syr#p passes thro#%h P9F, -hich is cooled itself by circ#lation of chilled, %lycol s#pplied chillin% compressor. ,o r#n the machine G*(( %as is #sed. ,he syr#p bein% chilled easily mi&es -ith C$ ( %as < enters to the filter for bottlin%. ,he filter is fitted -ith fillin% valves < lift Cylinders. C0oE6165 F Co7165> A9./0 bevera%e is filled in bottles it immediately %oes to the cro-ner -here -ith the help of cro-n crock the bottles are sealed to protect the carbonatin%, flavor, o#tside contamination < spoila%e till the contained bevera%e is cons#med. ,hen sealed bottles passed on the conveyor chain are coded by a codin% machine on their -ay to o#t end. ,he sealed bottles are inspected properly a%ainst inspection li%ht -hile passin% thro#%h the conveyor fitted -ith SS chain. ,he empty plastic crates passin% thro#%h a conveyor enter to crate -asher machine < it is -ashed < moves thro#%h the conveyor -here finished prod#cts are acc#m#lated. ,hen the prod#cts are kept in plastic crates, -hich are d#rable in nat#re < ret#rnable by b#yer, p#t on palates < sent to shippin% for shipment. T/:. o9 P0o732.:> Ginally the finished syr#p d#rin% bottlin% is tested in laboratory to meet the permanent < also to %et standard < E#ality prod#cts. &.4 P/09o0m,62/ E1.+ P30-o:/ Performance -ith P#rpose artic#lates PepsiCo IndiaKs belief that its b#sinesses are intrinsically connected to the comm#nities and -orld that s#rro#nds it. Performance -ith P#rpose means deliverin% s#perior financial performance at the same time as -e improve the -orld. ,o deliver on this commitment, PepsiCo India -ill b#ild on the incredibly stron% fo#ndation of achievement and scale #p its initiatives -hile foc#sin% on the follo-in% 0 critical areas that have a b#siness link and -here -e believe that -e can have the most impact. PepsiCo India contin#es to replenish -ater < e&pand its e&pertise in -ater conservation PepsiCo PepsiCo India3s "%ri*Partnerships -ith farmer3s helps farmers across the co#ntry earn more.

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PepsiCo India contin#es to convert -aste to -ealth, to make o#r cities cleaner. ,his a-ard -innin% initiative -ill establish Cero solid -aste centers in districts thro#%ho#t. PepsiCo India -ill stay committed to the health < -ell*bein% of children. It -ill contin#e to provide children -ith a healthy < f#n portfolio -hile sim#ltaneo#sly tacklin% the calories o#tside of the eE#ation by e&pandin% its %ets an active pro%ramme for kids especially for school %oin% children.

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P/-:1Co B0,67: P/-:1 ,he mother prod#ct. It is a carbonated -ater. S412/ is a line of fr#it*flavored soft drinks. 7 U- is a brand of a lemon*lime flavored non caffeinated soft drink. M10167, is a brand of soft drink available in fr#it incl#din% oran%e flavors. Mo36.,16 D/E is a caffeinated, s-eet, citr#s flavored soft drink prod#ced. A2I3,916, Mineral @aterS

&.? SEGMENTATION OF MARKET

" market se%ment consists of a %ro#p of c#stomers -ho share a similar set of needs and -ants. 7ather than creatin% the se%ment the marketer3s task is to identify them and decide -hich one to tar%et. Beadin% soft drink company Pepsico follo- the similar se%mentation strate%y for tar%et marketin%.

MASS MARKETING
9o-ever in some of its pop#lar prod#ct follo- the mass marketin% strate%y. In this type of se%mentation, Pepsico tar%et the -hole market and not any partic#lar se%ment of the pop#lation.

TARGETED MARKETING
"ltho#%h the tar%eted %ro#p of the company is the -hole pop#lation, they -ant to earn more reven#e from a se%ment than their other reven#e %enerator so#rces. Gor this, they 7eco%niCe follo-in% bases for se%mentation

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GEOGRAPHICAL
REGION P/-:12o treat hot co#ntries s#ch as "sia, Middle Fast and "frican differently in comparison to cold co#ntries. "s in tropical co#ntries, cons#mption of soft drinks is 8)Min s#mmer and +)M in -inter season -hile in FJ7$PF"A co#ntries its cons#mption is almost #niform. So soft drink companies prefer different marketin% strate%ies in "sian and F#ropean co#ntries. In co#ntries like India and Pakistan, these companies invest h#%e reso#rces in the season of s#mmers, and their tar%et area is domestic #sers, resta#rants, school and colle%e canteens and even r#ral chapels. @hile in -inter season their tar%et is mainly party #sers and hi%h*income %ro#p cons#mers. RURAL (S. URBAN MARKET Pepsico Company is one of the first %lobal ma ors to have spotted the potential spin offs from the co#ntry3s r#ral market. Pop#lation of 7#ral sector is more conscio#s more abo#t the price -hereas Pop#lation of Jrban sector is more conscio#s abo#t the E#ality and brand name of the prod#ct. So Pepsico in Pear ())( brin% the ()) ml bottle at 7s.5 specifically tar%eted at the r#ral sector so that soft drink can take place of the local drink like lemon, s#%arcane #ice and ,ea etc. >oth the companies Coca*Cola and Pepsico have adopted different marketin% strate%y for r#ral and #rban areas

DEMOGRAPHIC SEGMENTATION
AGE India is considered to be a yo#n% co#ntry i.e. avera%e a%e of Indian pop#lation is less +: years. ,h#s tar%etin% yo#n% %eneration can be a beneficial marketin% strate%y for soft drink Companies. In fact this is the case, all the ma or brands like Pepsico, coca cola, and th#mps #p, mainly tar%et yo#n%er %eneration in India. In F#rope, as avera%e pop#lation is older than "sian co#ntries, Coca cola tar%eted the older %eneration of the pop#lation. Similarly in JS", Pepsico tar%eted the %eneration W (yo#n%er %eneration) as they comprises ma ority of the pop#lation and they positioned Pepsico in the mind of yo#th that Pepsico is for the yo#th GENDER

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Dender based se%mentation is very important. "s taste of male and female is different. Bet3s take the e&ample of mo#ntain de- is promoted as masc#line soft drinks -hile Ganta are havin% li%ht taste and mainly tar%eted for lovin% birds, ladies, and children. In Pepsico, Miranda3 oran%e flavo#r is pop#lar amon% Badies, %irls, and children.

BRAND RE(ITALIJATION
,o recover and reposition brand in mind of cons#mer -hen it is not -orkin% s#ccessf#lly is kno-n as >rand 7evitaliCation. So there is an interestin% e&ample ho- brand repositionin% helps in recoverin% and %ro-th of the prod#ct. Pepsico initially introd#ced Mo#ntain /e- in 1;6; and marketed it -ith the co#ntrified ta%line !Pahoo Mo#ntain /e-'Y It3ll tickle yo#r in-ards.' >y the 1;;)s, the brand -as lan%#ishin% on store shelves despite an attempt to evolve the ima%e -ith o#tdoor action scenes. ,o t#rn the brand aro#nd, Mo#ntain /e#pdated the packa%in% and la#nched ads feat#rin% a %ro#p of anonymo#s yo#n% males*the !/e- /#des' participatin% in e&treme sports s#ch as b#n%ee #mpin%, skydivin%, and sno-boardin% -hile cons#min% mo#ntain de- the brand slo%an became !do the /F@'. ,he brand3s s#ccessf#l p#rs#it of yo#n% soda drinkers led to mo#ntain de- challen%in% diet coke to become the n#mber three sellin% soft drink in terms of market share by ())).

&.@ PEPSICO POSITIONING

Girstly the Pepsico in "merica try to position its prod#ct for the society as -hole and for the p#rpose of refreshment, -hich can be clearly visible from their advertisement slo%ans like any -hether is Pepsico -hether' the li%ht refreshment ! be sociable, have a Pepsico !

,his positionin% strate%y they follo-ed #p to 1;6) and after analysin% that it is very diffic#lt to capt#re -hole pop#lation as -hole. So Pepsico after 1;6) started tar%eted marketin%. Pepsico tar%eted the yo#th section and position there prod#ct as a necessity for yo#th and

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Pepsico advertisement slo%an after 1;6) try to position Pepsico as the brand for yo#th -hich are clearly visible from there advertisement as follo no- its Pepsico for those -ho thin% yo#n%' come alive, yo#3re in Pepsico %eneration ! yo#3re %ot a lot to live and Pepsico3 yeh hai yo#n%istaan meri aan' (in India) ,aste the once that3s forever yo#n%'

In the 1;6)s and early 1;8)s, Pepsico -as a m#ch more a%%ressive and innovate company than coke. In this period Pepsico o#tflank coke to s#rvive. IA early 1;85s Pepsico introd#ced the Pepsico challen%e marketin% campai%n -here Pepsico set #p a blind tastin% bet-een Pepsico*cola In this Pepsico started direct road sho- taste competition in -hich t-o %lass of soft drink one is Pepsico and another is Coke is %iven to person not kno-n by him -hich %lass contain -hich soft drink and after tastin% both the %lasses they ask -hich soft drink is havin% better taste. In this competition Pepsico said :)M of people like Pepsico taste over Coke. Pepsico took this a %reat advanta%e of the campai%n -ith television commercial reportin% the test res#lts to the p#blic. So thro#%h this competition Pepsico is able to position itself in the mind of c#stomer that Pepsico have better the taste than coke. Pepsico -as parted -ays -ith Shah 7#kh khan, Sachin tend#lkar, 7ah#l dravid, So#rav %an%#ly, Mahender Sin%h dhoni, 7anbir kapoor, /eepika pad#kone, Ishant sharma, 7ohit sharma, Shreeshant and =irender seh-a% to stren%then its 'yo#n%istaan' bri%ade. Pepsico si%ned "sin (of Dha ini fame) to take -ar to oran%e flavo#r cate%ory. Pepsico had tied #p -ith Chennai s#per kin%s for its 8#p brand, -hich is the most preferred drink there. Pepsico has also si%ned on ,ele%# movie actor 7am charante a as part of its yo#n%istaan campai%n to endorse Pepsico in "ndhra Prad

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&.7 S'OT A6,4=:1: o9 P/-:1Co STRENGTH OF PEPSICO INDIA> Its brand. 9#%e market covera%e, company e&istence not only in #rban area b#t also in the r#ral area Bar%e n#mber of prod#ct line to satisfy cons#mer. =erity of scheme for the retailer thro#%ho#t the year. So, that retailer -ill earn h#%e profit and also %et satisfaction after sellin% PepsiCo prod#ct. Company also %ives time to time schemes for the cons#mer. So that, final cons#mer interest for rep#rchase <en oy the benefit. PepsiCo India3s "%ri*Partnerships -ith farmers help farmers across the co#ntry earn more. Dood CS7 Ima%e.

'EAKNESS PEPSICO INDIA> In distrib#tion channel !distrib#tor' is the additional person -hich is not responsible for the company, beca#se there is no direct link bet-een company and the retailer. Sales person also not feel that they are -orkin% for company, they think only for the distrib#tor. !Pepsi' the brand is not appreciated by the >>S7 cons#mer, -hich is mother prod#ct.

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OPPORTUNITY OF PEPSICO INDIA Pepsi co#ld develop ne- prod#cts or prod#ct desi%nin% of Pepsi >rand for the >>S7 market Competitors have poor prod#cts s#ch as Ganta, limca. Fnd*#sers respond to ne- ideas, s#ch as la#nch other flavor of slice. Pepsi have a %reat chance to e&tend to r#ral area. Ae- specialist applications, s#ch as Sponsorship, trade fair, free sample.

THREATS OF PEPSICO INDIA Market demand very seasonal. 7etention of key staff is critical. 7etailer distract from core b#siness, s#ch as retailer demanded to keep slice only and not for Pepsi. Be%islation co#ld impact4 mean local ta&ation policy and b#siness policy of state < central %overnment.

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&.K CONCLUSION
Pepsico thro#%ho#t i s lon% history has been #sin% all fo#rs marketin% strate%y from ansoff matri& marketin% presentation, market development, prod#ct development and diversification. Fach of these strate%ies contrib#tes to the company s#ccess. Still it is diversification -hich is mostly #sed by pepsico. Pepsico implemented the market penetration strate%y by employin% the tactic of prod#ct*line stretchin%. ,hro#%h the a%%ressive and innovative advertisin% Pepsico attracted ne- and kept e&istin% c#stomers. ,he company has been introd#cin% and developin% ne- prod#cts like Pepsi mi& and ideas in order to increase and protect its market share. Its creativity and effectiveness has determined PepsiCo3s place -ith re%ard to profit, sale and c#stomer loyalty. Pepsi has relied on the development of ne- prod#ct. Pepsico foc#sed on e&plorin% nemarket especially in forei%n. ,he market strate%y is effective adopted by pepsico. ,he diversification strate%y is strate%y carryin% hi%h risk4 Pepsi has been prospero#s d#e to b#siness foresi%ht and effective control mechanism.

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+.; BIBLIOGRAPHY Boo;: R/9/00/7> Marketin%S* Marketin% mana%ement Philip Ootler 7a an Sa&ena

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