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Title Page

Index 1
Details of Presentation 2
A Brief History of Pepsi 3
Pepsi Launch in India 4
S.W.O.T. Analysis as per Indian 5
Market (Strengths of Pepsi)

S.W.O.T. Analysis as per Indian 6


Market (Weakness Of Pepsi)

S.W.O.T. Analysis as per Indian 7


Market (Opportunity for Pepsi)

S.W.O.T. Analysis as per Indian 8


Market (Threats for Pepsi)

Structural Analysis of Pepsi 9


Competitors Analysis for Pepsi 10

6 Oct 2010 Prepared By: Prashant Khale, Subject: Pepsi, S.W.O.T Analysis and Structural Analysis-Indian Market 1
Purpose for presentation
S.W.O.T. Analysis &
Market Structural Analysis
for Indian Market

Product Name
Pepsi-Soft Drink
Prepared By
Prashant Khale
Date
6 Oct 2010
Place
India, Vadodara
6 Oct 2010 Prepared By: Prashant Khale, Subject: Pepsi, S.W.O.T Analysis and Structural Analysis-Indian Market 2
A Brief History of PEPSI
• Pepsi-Cola Born in the Carolinas in 1898, The drink is the invention of
Caleb Bradham (left),a pharmacist and drugstore owner in New Bern,
North Carolina.he began experimenting with combinations of spices,
juices, and syrups trying to create a refreshing new drink to serve his
customers. He succeeded beyond all expectations because he invented the
beverage known around the world as Pepsi-Cola.

• His creation, a unique mixture of kola nut extract, vanilla and rareoils,
became so popular his customers named it "Brad's Drink." Caleb decided
to rename it "Pepsi-Cola," and advertised his new soft drink.

• In 1902, he launched the Pepsi-Cola Company in the back room of his


pharmacy, and applied to the U.S. Patent Office for a trademark.

• The business began to grow, and on June 16, 1903, "Pepsi-Cola" was
officially registered with the U.S. Patent Office.

• That year, Caleb sold 7,968 gallons of syrup. He also began awarding
franchises to bottle Pepsi to independent investors, whose number grew
from just two in 1905, in the cities of Charlotte and Durham, North
Carolina, to 15 the following year, and 40 by 1907. By the end of 1910,
there were Pepsi-Cola franchises in 24 states.

6 Oct 2010 Prepared By: Prashant Khale, Subject: Pepsi, S.W.O.T Analysis and Structural Analysis-Indian Market 3
Pepsi - Entry in India
• Pepsi gained entry to India
in 1988 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; Pepsi bought out
its partners and ended the
joint venture in 1994.
6 Oct 2010 Prepared By: Prashant Khale, Subject: Pepsi, S.W.O.T Analysis and Structural Analysis-Indian Market 4
S.W.O.T Analysis - Strengths
6. Number one maker of
1. Pepsi has a broader
snacks, such as corn chips
product line and outstanding and potato chips
reputation.
7. PepsiCo sells three
2. Merger of Quaker Oats products through the same
produced synergy across distribution channel.
the board.
For example:
3. Record revenues and increasing market share. Combining the production
capabilities of Pepsi,
Gatorade and Tropicana is a
4. Lack of capital constraints
big opportunity to reduce
(availability of large free cash flow). costs, improve efficiency
and smooth out the impact
5. Great brands, strong distribution, of seasonal fluctuations in
innovative capabilities demand for particular
product.
6 Oct 2010 Prepared By: Prashant Khale, Subject: Pepsi, S.W.O.T Analysis and Structural Analysis-Indian Market 5
1.Pepsi hard to inspire vision and direction for large global company.

2.Not all PepsiCo products bear


the company name.

3. Pepsi is far away


from leader in
the international
market - demand is
highly elastic.

6 Oct 2010 Prepared By: Prashant Khale, Subject: Pepsi, S.W.O.T Analysis and Structural Analysis-Indian Market 6
S.W.O.T Analysis - Opportunity
1.•Food division should
expand internationally.

2. Noncarbonated drinks
are the fastest-growing part
of the industry.

3. There are increasing trend


toward healthy foods .

4. Focus on most important


customer trend - "Convenience".

6 Oct 2010 Prepared By: Prashant Khale, Subject: Pepsi, S.W.O.T Analysis and Structural Analysis-Indian Market 7
S.W.O.T Analysis -
• F•&B industry is mature,and Growing day by day.
Threats
• Pepsi is blamed for pesticide residues in their products in one of their most promising
emerging market e.g in India
• •Over 50 percent of the company's
sales come from Frito-Lay; this is a
threat if the market takes a
downturn
• PepsiCo now competes with Cadbury
Schweppes, Coca-Cola, and Kraft
foods (because of broader product
line) which are well-run and
financially sound competitors.
• Size of company will demand a varied
marketing program; Social, cultural,
economic, political and governmental
6 Oct 2010
constrains.
Prepared By: Prashant Khale, Subject: Pepsi, S.W.O.T Analysis and Structural Analysis-Indian Market 8
Market Structural Analysis

suppliers have Less Bargaining Power,


Due to lot of substitute for Strong Bargaining Power within buyers ,
Bottals,cans,plastics,and for sugar-sugar due to other brands,health consious
corn,sweetner peoples are incresing,behaviour of
youngster for testing different
Transporter will bargain due to hike in things,price to coustomer,comm for
petrol, diesels ,scrasity of Drivers or Long Distributors.
Distance.

Strong barriers for New


Entrants
Threats of substitute
Due to Big Investment. Products-
Competitive Rivalry
Required Unique Formula Many Alternative
with in Industry- Brevarage
of Drink-test .
Very Few Like Coca- Example Juices,Tea,
Difficult or Time Cola , Cadbury,
Consuming to Create new hard Drink,Milk
other Local Brands
Distribution Channel and health drinks

6 Oct 2010 Prepared By: Prashant Khale, Subject: Pepsi, S.W.O.T Analysis and Structural Analysis-Indian Market 9
Competitors Analysis
Market Share
Coca-Cola Pepsi Cadbury-schweppes others

11%
15% 42%

32%

6 Oct 2010 Prepared By: Prashant Khale, Subject: Pepsi, S.W.O.T Analysis and Structural Analysis-Indian Market 10