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MARKETING STRATEGIES ADOPTED BY

INDIAN SOFT DRINK INDUSTRY

Presented to : Presented by:

Dr. G.S. Kashyap Sandhya Rawat

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ë Yoca ± cola India Pvt. Ltd.
ë Dabur Foods Ltd.
ë Mount Everest Mineral Waters Ltd.
ë Narangs Hospitality services pvt. Ltd.
ë Parle Agro pvt. Ltd.
ë Parle Bisleri Ltd.
ë Pepsico India Holdings pvt. Ltd.
ë PIOMA Industries


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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.


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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).
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
 

  !""#

Offer was accepted after much

negotiations
Export import ratio was finally fixed at
5:1
Yold drinks sale was fixed at 22.5% of
total sales
Lot of political lobbying was involved.
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ë Pepsico brands enjoys high profile
global presence
ë Pepsi owns the worlds second best
selling soft drinks brand.
ë Yonstant product innovation
ë Aggressive marketing strategies using
famous celebrities
$ 
ë Yarbonates market in decline
ë They only target young people
ë Over ± complexities of relationships with
bottlers
ë The existing distribution system is not so
efficient for non-carbonates.
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ë Increased consumer concerns with
regard to drinking water
ë Growth in healthier beverages
ë Growth RTD Tea and Asian beverages
ë Growth in the functional drink industry.
 
ë Obesity & health concerns
ë Yoca ± cola increase marketing &
innovation spending to $ 4 million
globally

% %
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ë Pepsi segments its market in two levels
1. Demographic
2. Niche Marketing
ë Demographic : Focusing on the pepsi ± cola
beverage products pepsi company has
retained a long history of concentrating on
youth as its main target market ± generation
next. It has spend billions of dollars in trying
to woo the young and nearly young , implying
that the coca ± cola is for older generation.
The reason for targeting this market is that it
is the largest among its users.
ë Niche Marketing :-
Pepsi focused on varietal differentiation
by introducing niche products. To
increase volume, in order to counter the
flat sales, pepsi introduced products like
7up, sprite, mountain dew, pepsi one
and pepsi blue.
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ë PRODUYT:
After the success of pepsi, the Pepsi
company launched another products like
± mountain dew, mirinda, mist naturals,
diet pepsi, tropicana, sprite, ready to
drink coffee, Lipton ± ready to drink tea
etc.
ë Promotion:
Pepsi company has advertised its products
through many different ways and media.
Through t.v. we have seen different
advertisements of its products such as
pepsi and dew. Pepsico also advertised its
products by those favourable television
programs like sports, t.v. series etc. The
usage of posters are also used to create
awareness of the products.
ë Place:
Decisions with respect to distribution
channel focus on making the product
available inadequate quantities at places
where customers are normally expected to
shop for them to satisfy there needs. Some
of its supply source capabilities are :
1. Less breakdowns
2. High quality
3. Flexible supply capacity
4. Mature production process
ë Price:
Pepsi being a company that emphasizes
on product quality tends to sell its products
with price range from moderately low to
high prices, depending on the use and the
targeted customers. Pepsi decides its price
on the basis of competition. For example,
whenever coca-cola reduces there prices,
pepsi also responds through price cuts and
then eventually after that period, it raises
its price.