Part Time MBA

Division A
Group No.09
1st Year- Trimester III
Dhiren Haria A017
Hiren More A029
Jay Sangani A041
Priyank Shah A043
Vishal Shah A044
Harmesh Trivedi A050
 CONTENT

Introduction on PepsiCo India

Product Offerings
Market structure
Market segmentation - STP analysis
SWOT analysis
4Ps Marketing Mix
Recommendations & Conclusions
 INTRODUCTION

PepsiCo is an American New York-based global corporation that

manufactures and markets grain-based snack foods beverages and other
products. It was found in 1965 with the merger of Pepsi Cola and Frito Lay's

No.1 food & beverage business in India

PepsiCo is the largest player in the snack category and plans to grow in some
of its stronger brands including Lays, Doritos, Fritos, and Cheetos.
 INTRODUCTION

PepsiCo India has not only grown to become the countrys largest food and
beverage business but has also become a powerful and consistent driver of
PepsiCos global growth.

India's beverage and foods businesses have been the largest volume growth
contributors to PepsiCo across the globe.

PepsiCo India has been frequently recognized for its industry-leading human
resource practices, indovations, corporate values, and talent, and was one of
the five top marketers of the country in 2009.
 PRODUCT OFFERING BY PepsiCO

4/27/17 5
 MARKET STRUCTURE
The size of the Wafer Snacks Segment in India is estimated to be Rs. 5000
crores.
The market is growing at 25-30 percent annually

The branded players account for around Rs. 2,500 crores of the market size

Major branded players include Frito-Lay, Bingo, Haldiram, Balaji, Parle

Potato Chips and Potato based items account for 85 percent of the total
snacks segment.
 MARKET SHARE Frito-Lay
As per Nielsen Audit, in 2011, Frito-Lay's share in the Rs.
2500 crore organised snack market in India was 58%
 S T P Analysis

People who want to have

Segment between meal snacks

Target Youth of Lower, middle

Group income

People who are successful

Positioning yet are down to earth
 SWOT ANALYSIS
Strengths
Well establish network
Strong PepsiCo Brand
S W
recognition
Prior experience in the
Snack industry
worldwide
Loyal Customers
Opportunities
O T
Changing life styles
Market Globalization
Innovative Marketing to
increase Brand Awareness
Few Organized players
More Flavors as compared
to Bingo
Weaknesses
Expensive compared to
regional players
Seasonal availability of
Raw materials
Health conscious people
avoid high fat & cholesterol
in potato chips
Threats
Availability of healthy
products from competitors
Regional & Unorganized
players posing threat
Impulse purchase product,
brand switching and flavour
fatigue is high
 PRODUCT STRATEGY
Lays is made with Indias best-quality fresh potatoes, cooked in edible
vegetable oils, and then seasoned with delicious flavours

Very high quality control and stringent production processes followed to

produce high quality chips.

Undergone International Quality control certifications like ISO 14000,

HACCP(Hazard Analysis and Critical Control Point) USA, Certification
by TQCSI (Australia), American Institute of Baking (USA), OHSAS 18001
(Occupational Health and Safety Assessment Series),USA

To address rising health concerns, Frito-Lay potato chips have been

manufactured with zero trans-fats and no added MSG
 PRODUCT STRATEGY
Introduced many different Westernized as well as Indian flavors to cater
to urban as well as rural market segment like Classic Salted, American
Style Cream & Onion, Chat Chaska, Magic Masala, Tangy Tomato,
Mastana Mango

To cater to health conscious market, Lay's India recently launched new

Lay's Baked range with 50 percent less fat.
 PRICING STRATEGY
Frito Lays goal is to provide good quality snack at fair prices so as to
attract customers.

Since the potato chips market is driven by high impulsive buyers,

there is very little scope of different pricing strategies by market
players.

Prices consistent and comparable to competitors and are generally

inexpensive.

Introduced SKUs priced at Rs.5, Rs.10 and Rs. 20

 PLACE STRATEGY
PepsiCo has a well-established network Pan-India

30 CFAs, 2 RDCs, 800 distributors , 4 lakh retailers

Over 1 million retail outlets in over 100 towns/villages

Lays are basically sold everywhere including railway canteens, gas

stations, colleges, groceries, supermarkets, convenience stores,
amusement parks, movie houses and even schools
 PLACE STRATEGY
Lays displayed at a small Chai waala shop on a hill station
 PROMOTION STRATEGY

Frito Lay's roped in various brand ambassadors like Saif Ali Khan, Dhoni
to promote Lays with tag lines No One can eat just one and Be a little
Dillogical
 PROMOTION STRATEGY

Free samples for new flavors launched

Displays before check-out line in the store

Eye-catching displays with special shelves for Lays chips at retail stores
are also one of their strategies.
 PROMOTION STRATEGY

Use of online media like Orkut, Facebook to promote Lays brand and its
offerings.
 RECOMMONDATION
Frito-Lay is unruffled. it has already taken the health positioning
into account. They have been innovating continuously in the health
and wellness area under our "snack smart" programme.

They have ensured that Lays offers consumers great tasting chips
made from the freshest, best quality natural potatoes, made from
best quality seasonings which contain zero MSG, and are cooked in
rice bran oil (40 per cent less saturated fat) and contains zero trans
fats,"
 CONCLUSION
In sum, Frito Lay's products are made available to the general public
through various, integrated marketing initiatives.

Its value proposition of bold flavor and loud image, coupled with
competitive prices, is the marketing drivers behind Frito Lay's.

Frito Lay's boasts for its wide array of snack foods and dips that
complement the needs and lifestyle of the target segments that
demand for convenience and foods on the go.