COMPARATIVE ANALYSISOF THE

MARKETING MIX OF PEPSICO IN

INDIA AND USA
What is Marketing Mix??
PEPSI AND ITS 4P’s
PERFORMANCE WITH
PURPOSE




 PepsiCo believes that its performance is

fundamentally connected to its agenda of
purpose, which represents the
commitment to give back to communities
as the company grows.

A B O U T P E P S IC O
PepsiCo is a world leader in convenience
foods and beverages. Its world renowned
brands are available in nearly 200
countries and territories.


PepsiCo entered India in 1989 and has grown

to become the country’s largest selling food
and beverage companies.


PepsiCo India and its partners have invested

more than U.S.$700 million since the company
was established in the country in 1989.
 Pepsi has official sponsorship deals with three
of the four major North American professional
sports leagues:


 National Football League

National Hockey League 
 Major League Baseball
 Major League Soccer


 Pepsi also has sponsorship deals

in international cricket teams. The Pakistan
cricket team is just one of the teams that the
brand sponsors.
PEPSICO’S PROFILE

Revenues in 2007 is more than $39
billion .
Share in Indian carbonated soft drink
market is 37 bottling plants in
India , of which 16 are company owned
and 21 are franchisee owned .
PepsiCo ’ s Frito Lay snack division has
3 state of the art plants .
It has more than 185 , 000 employees
across the world .
In India , PepsiCo provides direct
employment to 4 , 000 people and
indirect employment to 60 , 000 people
including suppliers and distributors .
India Headquarters : Gurgaon .
BRAND IMAGE OF PEPSI
Pe p siis a b ra n d th a t e ve ry yo u n g ste r re la te s
to .


B u t th is d e fin ite ly d o e sn ’ t m e a n th a t o th e r a g e
g ro u p s a re n o t it’ s u se r’ s.


Thus Pepsi’s brand image is it’s hip, cool,

lively and refreshing attitude.

ENTRY OF PEPSI IN INDIA –
PHASE I
In 1985 a proposal with R.P. Goenka group was
rejected by the then govt.
The proposal involved:
Export of fruit juice concentrates from
Punjab in return for the import of cola
concentrates.
The deal offered was 3:1 export import
ratio.

ENTRY OF PEPSI IN INDIA –
PHASE II:
Rs 22 crore Pepsi co project was the second bid.
The second proposal encompassed the following
activities:
Agro Research centre (costing Rs 1.55 crores).
A potato and grain based processing unit (costing Rs 8
crores).
A fruit and vegetable processing unit (costing Rs &.5
crores).
Exports.
The Pepsi co would have an equity holding of 39
percent, PAIC, 20 percent and Voltas , 24 percent.
The balance was to be placed privately from loans.
Imports would be 37 crores and exports a minimum of
Rs 194 crores over a 10 year period.
Benefits and advantages of proposal includes better
market for rice, wheat and fruits in Punjab
Acceptance of the Pepsi offer
in India in 1989:

Offer was accepted after much negotiations

Export import ratio was finally fixed at 5:1
Cold drinks sale was fixed at 22.5% of total
sales
Lot of political lobbying was involved.



SLOGANS OF PEPSI
 1939–1950: "Twice as Much for a Nickel"
 1950: "More Bounce to the Ounce"
 1950–1957: "Any Weather is Pepsi Weather"
 1957–1958: "Say Pepsi, Please"
 1958–1961: "Be Sociable, Have a Pepsi"
 1961-1963: "Now It's Pepsi for Those Who Think Young"
(jingle sung by Joanie Sommers)
 1963–1967: "Come Alive, You're in the Pepsi Generation"
(jingle sung by Joanie Sommers)
 1967–1969: "(Taste that beats the others cold) Pepsi Pours It
On".
 1969–1975: "You've Got a Lot to Live, and Pepsi's Got a Lot to
Give"
 1975–1977: "Have a Pepsi Day"
 1977–1980: "Join the Pepsi People (Feeling Free)"

1981–1983: "Pepsi's got your taste for life"
1983: "It's cheaper than Coke!"
1983–1984: "Pepsi Now! Take the Challenge!"
1984–1991: "Pepsi. The Choice of a New
Generation" (commercial with Michael
Jackson and The Jacksons, featuring Pepsi version
of Billie Jean)
1986–1987: "We've Got The Taste" (commercial
with Tina Turner)
1987–1990: "Pepsi's Cool" (commercial with
Michael Jackson, featuring Pepsi version of Bad)
1990–1991: "You got the right one Baby UH HUH"
(sung by Ray Charles for Diet Pepsi)
1990–1991: "Yehi hai right choice Baby UH
HUH" (Hindi - meaning "This is the right
choice Baby UH HUH") (India)
1991–1992: "Gotta Have It"/"Chill Out"
 1992–1993: "Be Young, Have Fun, Drink Pepsi"
 1993–1994: "Right Now" Van Halen song for the Crystal
Pepsi advertisement.
 1994–1995: "Double Dutch Bus" (Pepsi song sung by Brad
Bentz)
 1995: "Nothing Else is a Pepsi"
 1995–1996: "Drink Pepsi. Get Stuff." Pepsi Stuff campaign
 1996–1997: "Pepsi:There's nothing official about it"
(During the Wills World Cup (cricket) held in
India/Pakistan/Sri Lanka)
 1997–1998: "Generation Next" - with the Spice Girls.
 1998–1999: "It's the cola" (100th anniversary commercial)
 1999–2000: "For Those Who Think Young"/"The Joy of Pepsi-
Cola" (commercial with Britney Spears/commercial
with Mary J. Blige)
 1999-2006: "Yeh dil maange more" (Hindi - meaning
"This heart asks for more") (India)
2003: "It's the Cola"/"Dare for More" (Pepsi Commercial)
2005–2006: "An ice cold Pepsi. It's better than sex!"
(Larry Sypolt)
2006–2007: "Why You Doggin' Me"/"Taste the one that's
forever young" Commercial featuring Mary J. Blige
2007–2008: "More Happy"/"Taste the once that's forever
young" (Michael Alexander)
2008: "Pepsi Stuff" Super Bowl Commercial (Justin
Timberlake)
2008: "Рepsi is #1" Тv commercial (Luke Rosin)
2008–present: "Something for Everyone."
2009–present: "Refresh Everything"/"Every Generation
Refreshes The World"
2009-present: "Yeh hai youngistaan meri jaan"
(Hindi - meaning "This is our young country my
baby") (India)
2009-present: "My Pepsi My Way"(India)
2009-present: "Refresca tu Mundo" (Spanish - meaning
"Refresh your world") (Latin America)
PRODUCTS

 PepsiCo Brands


Pepsi-Cola
Frito Lay
Tropicana
Quaker
Gatorade

Products of Pepsi-Cola(In
U.S.A)
 Pepsi
 Diet Pepsi
 Caffeine Free Diet Pepsi
 Diet Pepsi Max
  Jazz Diet Pepsi
 Diet Pepsi Lime
 Diet Pepsi Vanilla
 Pepsi Wild Cherry
 Diet Pepsi Wild Cherry
 Pepsi ONE
 Mountain Dew
 Diet Mountain Dew
 Mirinda
 Slice
 Aquafina
 Aquafina Alive
 Aquafina FlavorSplash
 Aquafina Sparkling

Products of Pepsi-Cola(In
India)
Pepsi
Diet Pepsi
Mountain Dew
Mirinda
Slice
7UP
Aquafina
Products of Frito Lay(In
U.S.A)




Lay's potato chips
Baked Tostitos tortilla chips
Doritos Nacho Cheese
Flat Earth
Products of Frito Lay(In
India)
 PepsiCo’s snack food company, is the leader
in the branded salty snack market. It
manufactures :
Lay’s Potato Chips
Cheetos extruded snacks
Uncle Chipps
Aliva- Tasty Crackers and
traditional namkeen snacks under the Kurkure
and Lehar brands

Products of Tropicana(In
U.S.A)

Tropicana Pure Premium juices

Tropicana Twister juice drinks
Tropicana Smoothies
Tropicana Pure Tropics juices
Dole juices (License)
Tropicana 100 juices
Naked Juice

Products of Tropicana(In
India)
Tropicana 100% Juices(sold as tropicana 100%)

Juice Beverages and Nectars(sold as tropicana)

Products of Quaker(In
U.S.A)
 Quaker Oatmeal
 Quaker Instant Oatmeal
 Quaker Oatmeal Breakfast Squares
 Cap'n Crunch cereal
 Life cereal
 Quaker Oatmeal Brown Sugar Bliss
 Quaker Oatmeal Honey Nut Heaven
 Quaker 100% Natural cereal
 Quaker Squares cereal
 Quisp cereal
 King Vitaman cereal
 Quaker Oh's! Cereal
 Mother's cereal
 Quaker grits
 Quaker Oatmeal-to-Go
 Aunt Jemima mixes & syrups
 Quaker rice cakes
 Quaker rice snacks (Quakes)
 Quaker Chewy granola bars

 Quaker Dipps granola bars
 Rice-A-Roni side dishes
 Pasta Roni side dishes
 Near East side dishes
 Puffed Wheat
 Harvest Crunch cereal
 Quaker Baking Mixes
 Spudz snacks
 Crisp'ums baked crisps
 Quaker Fruit & Oatmeal bars
 Quaker Fruit & Oatmeal Bites
 Quaker Fruit and Oatmeal Toastables
 Quaker Soy Crisps
 Quaker Bakeries

Products of Quaker(In
India)
 Quaker Oats(In 2006)

Products of Gatorade(In
U.S.A)
Gatorade Thirst Quencher
Gatorade Frost Thirst Quencher
Gatorade Ice Thirst Quencher
Gatorade Xtremo Thirst Quencher
Gatorade X-Factor Thirst Quencher
Gatorade Fierce Thirst Quencher
Propel Fitness Water
Products of Gatorade(In
India)
 Gatorade Sports drink(In 2004)

Price of Pepsi in US
 COMPARISON STATS.
 Before 1999, a 20-ounce beverage the Pepsi
products have risen to $1.25 a bottle from
$1.15 per bottle. Currently, the C-Store charges
$1.19 for 20-ounce Pepsi products, while 7-11
charges $1.29.

 C O M PA R IS O N C O N T D …
 After 1999, Analysts said 12-packs
of cans, which had been selling for
$1.99 in many supermarkets, will
rise to $2.49 or $2.79 after the
increase takes effect.

 P E P S I IN D IA
 Pepsi - Yeh Hai Youngistan Meri JaanPepsi -
Yeh Hai Youngistan Meri Jaan
RISING COSTS. TIMES OF INDIA , 3RD FEB,
2010.

 After the price hike, Coke's 300 ml returnable

glass bottles are now available for Rs 12 from
its earlier price of Rs 10. Besides, the company
has also increased the prices of the 2 litre PET
bottles of the soft drink brands by Rs 5 from Rs
55.

PLACE
PAH/PI own the Pepsi brands. They sell the
concentrate to CSA who manufactures and
bottles the Pepsi products and distributes
it to consumers.


CSA distribute Pepsi via various channels

e.g. major supermarket chains,
convenience stores, smaller milk bars,
restaurants and fast food outlets (e.g. KFC,
Pizza Hut, Oporto).
Service the right pack size at the right price,
in the right place at the right time.
Decisions with respect to distribution channel
focus on making the product available in
adequate quantities at places where
customers are normally expected to shop for
them to satisfy their needs.


Depending on the nature of the product,

marketing management decides to put into
place an exclusive, selective or intensive
network of distribution , while selecting the
appropriate dealers or wholesalers.
Direct Distribution
Delivery of post mix cylinders & handling of key
accounts: The key accounts are different
wholesalers, restaurants and hotels like Pizza Hut,
KFC, Metro which serve as a place for key sale.


These are known as national key accounts and are

very important in terms of competition.


Export Parties
Indirect Distribution

Through Base market distributors
Through Outstation distributors


 Before delivering the product some certain guiding

principles are followed or the assessment of
distributor’s capability:


vApplicant must have 20 to 25 vehicles (depending

on the area).
vApplicant must have 20,000 cases of empty
bottles.
vApplicant must deposit Rs. 1,00,000 as a security.
 This is usually done through taking over key revenue
areas. If the distributor does not achieve its sales target,
the distribution is taken back and an addition of new
distributor is done. Therefore Pepsi’s supply is low supply
uncertainty.

 Some of its supply source capabilities are:

Ø Less breakdowns
Ø High quality
Ø Flexible supply capacity
Ø Mature production process
Ø
PROMOTION
Advertising Strategy of Pepsi
Pepsi’s target audience are mostly
teens and young adults and their
advertising reflects this in every
possible way.

The company changes its advertising
strategy and image to reflect the
target's interests.

Pepsi makes sure that the
advertisements reflect to the target
audience’s interests and nostalgia.
CONTD…
The advertising strategy includes cool, hip
promos to attract more of the target audience.


The advertising is mostly creative and has

different elements like music and sports other
than bollywood.


Pepsi.com also plays an important role in

advertising and attracts target audience by
giving access to options like downloads,
gaming, music mixing applications etc..


PROMOTION(In U.S.A)
. In US Pepsi Advertisement does not have any celebrity and
does not try to influence by their idols.
US Pepsi Promos give knowledge about the ingredients and
promote it as sugar free.
The diet Pepsi Advertisement of US shows that it provide
energy and has zero calories
US Pepsi Promo is more creative and innovative to influence
the customers.
Pricing is never provided in the advertisement of Pepsi in
US.
More of the liberal thoughts are shown in the promos of
Pepsi in US.
Pepsi is promoting their drink by showing it energetic,
healthy and safe to drink
Pepsi Promos In
India
In India Pepsi has Dhoni, Deepika, Ranbir and John as their
brand ambassadors.
The promos of “Pepsi My can” is viewed in India where Dhoni
with other players of cricket Team can be seen.
Pepsi promo in India emphasize on the smartness of child to
save Pepsi from cricketers.
Pepsi is targeting customers of all age group and use games,
contest to promote the product.
The promo of Pepsi in India is more concentrated towards the
celebrities and try to influence people by showing their idols
drink same drink.
Pepsi is promos in India is more dramatic and lack message and
focus on showing people that other are also drinking the same
drink.
Some of the past Pepsi Advertisement also included price and
tried to influence people on the basis of price.
Pepsi Promos In
India
DIFFERENCE IN PROMOS
India US
In India more emphasize is given In US more emphasize is given
on celebrities on the ingredients

In India promos contest are also In US promos more of benefits

shown to promote the product to health is shown.

In India promos try to influence In US Promos try to give

people on the emotions and
beliefs
In India Price is all taken into
consideration to attract
Customers
Less creative
facts and influence people
In US Promos price is never
shown to influence customers
More creative

Brand ambassadors are used No such Brand ambassadors are

used


 Some of Pepsi’s
successful
Campaigns
Yeh Dil Maange More
Bubbly Campaign



Youngistan
Campaign
 “Yeh hai Youngistaan
Meri Jaan “
Youngistan Campaign
  About Youngistan
This campaign has two new celebrities Ranbir Kapoor
and Deepika Padukone —who acted in the two most-
talked about Hindi films in 2007, to accompany brand
ambassador Shah Rukh Khan.


“This time we wanted an all-encompassing theme.

‘Youngistan ’ reflects the mood of India’s youth,
which is today keen to take the ropes and drive
India,” says Punita Lal, executive director,
marketing, PepsiCo.



CONTD…
“Youngistan”, hopes to cash in on
the buzz surrounding today’s
youngsters.


Youngistan is not so much a place

and it is a state of mind of
today’s youth. “While the term is
new, what it stands for – the
GenNext attitude – is not new”.


 Segmenting pattern
Demographics: The Campaign targets teens and young
adults of metros and phase II cities.

Psychographics: The campaign attempts to capture the
youth of today by focusing on their personality
,lifestyle and attitude of youth through the
advertisement
 Targeting Strategy
The Youngistaan Campaign uses
undifferentiated targeting
strategy to reach out to its
target audience. That is it
launched youngistaan campaign
for all the target audience in
the same way.
 Positioning
The campaign positioning is done on the basis
of user approach i.e a personality based
approach where a user’s image or association
rubs off on the brand image. The user could be
a celebrity or an ordinary user.
For this campaign Pepsi used the three most
popular celebrities of the last year i.e
Shahrukh Khan, Ranbir Kapoor, Deepika Padukone
 Placement of the Campaign
The campaign was first launched on T.V during the tri-
series matches in February.


The campaign is launched with a 360-degree activation

across radio, outdoor, modern trade, Web and wireless
platforms.


Pepsi has launched a website for Youngistan inside the

Pepsi Cool Zone and is planning to make it a responsive
peer group site where youngsters can visit and make
comments on any topic.


Pepsi Youngistan is also sponsoring ‘‘Wassup Youngistan” on

MTV, a show where youth can voice their thoughts.

 

Youngistan T.V advertisement

 Advertising Agency for
Youngistan
JWT ( J. Walter Thompson), ranks as
the largest advertising agency
brand in the U.S. and as the
fourth-largest full service
network in the world. It was the
first agency to be associated
with anthropology and the study
of consumer behavior.
 Competitor’s for

Youngistan.

Competition for Pepsi has always come
from it’s arch rival Coco-Cola. Coke
kept up with Pepsi’s Youngistan by
launching a campaign “Jashn Mana le”
staring Hrithik Roshan.
Sprite, a subsidiary of Coco-Cola
company has also launched an ad
campaign called “Hindustan”, mocking
the Pepsi’s “Youngistan” campaign.
Conclusion
As it’s earlier campaign’s
Pepsi through ‘Youngistan’
campaign aims at capturing
it’s target audience in
another cool, funky,
attractive way.

 THANK YOU


PRESENTED BY:
 NISHITA
AGGARWAL(D 04)
 TISHA GUGLIANI(D
05)
 BALVINDER
KAUR(D 06)
 SOMADITYA
BANERJEE(D 26)
 JAYANT MENDIRATTA(D