You are on page 1of 45

Company Profile :

"To be the world's premier consumer products company focused on convenience foods and beverages. We seek to produce healthy financial rewards to investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in everything we do, we strive for honesty, fairness and integrity

PepsiCo India is striding ahead rapidly towards enabling the global vision to be the world's premier consumer products company focused on convenience foods and beverages. PepsiCo India seeks to produce healthy financial rewards for investors as it provide opportunities for growth and enrichment to its employees, business partners and the communities in which it operates.

PepsiCo entered India in 1989 and has grown to become one of the countrys leading food and beverage companies. One of the largest multinational investors in the country, PepsiCo has established a business which aims to serve the long term dynamic needs of consumers in India. PepsiCo India and its partners have invested more than U.S.$1 billion since the company was established in the country. PepsiCo provides direct and indirect employment to 150,000 people including

Marketing Mix / 4 Ps:

Marketing Mix has been defined as the set of marketing tools that a firm uses to pursue its marketing objectives. These tools are classified into four broad groups, namely, Product, Price, Place and Promotion. Marketing mix decisions should be made to influence trade channels as well as final consumers. A firm can alter any of the four Ps accordingly, including changes in the product and distribution channel as well. The four Ps represent the sellers view of the marketing tools available for influencing buyers. Whereas, from a buyers point of view, each marketing tool is designed to deliver a customer specific benefits according to his or her requirements.

Product

Brand name
This is the most important thing any Co. in this Business needs to do if it wants to remain and succeed in the Business. Pepsi has successfully done that for so many years. Pepsi has targeted the youth and has invested heavily in advertising and building a brand image. several campaigns and roping in mega stars such as Shahrukh, Sachin, ganguly, Dravid etc.) that attracts to the youth and this is one of the main reason for the

Packaging and Size :


The products are available in packaging and sizes. This is done to facilitate the use according to the requirements of the Customer. Different packaging also affects the usage pattern of the product in various markets. e. g. sale of 2 lt. bottles is high in areas in which middle and high income group customers stay. But the sale of 200 and 300 ml bottles is high in areas where people in the lower income group bracket stay. The sale of 600 ml bottles is high in areas where students etc. stay. Different packaging is also provided for different products like Tetra Packs, Pet Bottles and Glass Bottles (in 200 and 300 ml).

Price
Discounts: Discounts are provided to Wholesalers and Slums but there is no discount for retailers. The discounts are negotiated directly with the Company and the C&F or the Distributor point is not involved in the price negotiation. Allowances: Allowances are given to salesmen on achieving their daily targets. This target is given to every Salesman everyday before he goes on his designated route. The Depot In charge (Sr. C E / C E) gives the target to every salesman in consultation with the TDM.

Payment period and Credit terms


No credit is provided. The payment procedure is not flexible as the retailers are required to make on the spot payments. At times, they defer the payment and in that case, the Salesman either shows a shortage or pays the rest of the amount by himself. The wholesalers are also required to make in advance but at times they also defer the payment and make the payment at a later date.

Target Segment Youth:


The child/youth market is of crucial importance to drinks manufacturers as under-19s constitute 20-30% of the population in western countries, making them a substantial and lucrative consumer base. With many life-long consumption habits formed during youth, gaining high penetration in the children's and teenagers' market is of key importance to manufacturers with long-term ambitions and growth targets. Targeting Soft Drinks to Youths enables companies to: Assess the size of the soft drinks opportunity by age group Understand children's values and motivations and their impact on the soft drinks market Develop incumbent market position through enhanced targeting and promotion Assess trends in new product development in the children's market over the course of the past 2 years Combine business to business executive opinion and local field research

Place

CHANNELS OF BEVERAGE INDUSTRY

Manufacturers activity
Merchandising activities Enables the company to leverage frequent delivery visits to the point of sale. These activities include tracking merchandising of other entities (suppliers, wholesalers, etc.); reporting on in-store merchandising activities; carrying out competitive intelligence (competitive products, product mixes, prices, displays, etc.); and monitoring store/account execution. May also include some preventive maintenance. Additional sales opportunities Allows a company to sell goods off the truck without any preceding order. The mix of products on the truck is dependent on what is most likely to be sold on a certain trip. Support provided by handheld devices enables drivers to skip back-end paperwork and to close the process through printed invoices.

Indirect Channel (wholesalers)


Medium-sized organizations as a consequence of aggregation through consortia and mergingPlaying a fundamental role in beverage distribution Possess critical information regarding individual points of sale in terms of volume, assortment, presence of competitors beverages, etc. Due to the complexity of the marketplace, the entire logistical chain must be able to sustain brands, products and services coherently within the various channels, taking into account differing points of sale and diverse customer needs. Additionally, each beverage manufacturer must provide customers with an extensive set of packaging options, including: Tracking product in various package sizes Special labeling requirements for customers International/domestic packaging Tracing / recall capabilities. Statutory regulation is increasing.

Modern Trade/Large Chain Retailers


Greater power in negotiating purchases of concentrations and merges Direct access to the consumer and a tendency to protect this relationship from manufacturer intrusion Request contributions and discounts from brand companies

Small Individual Retailers


Huge number of small point sales Sometimes buy products directly through cash and carry or modern trade Soft drink manufacturers profit from increased sales at the expense of distributors margins Soft drink distributors profit from positive local pricing environments, which, if exploited, reduce volume sales Soft drink distributors continue to consolidate in an attempt to offset margin pressure through cost reduction Despite these conflicting interests, it is crucial that beverage manufacturers and beverage distributors maintain one face to the

Distribustion

Distribution Channal
Flexible ordering; flexible delivering Most retailers are demanding increased flexibility in order lead-times and
delivery methods, putting additional pressures on the supply chains of manufacturers and distributors. To withstand these pressures, companies need to streamline product movement through programs such as storespecific shipments. They must also meet the strategies of progressive retailers, which require flow-through distribution and cross-docking.

Accurately forecast demand


Properly forecasted demand drives two of the primary metrics used to measure the efficiency of a beverage companys supply chain: customer service and inventory. Accurate forecasts are essential to achieving improved customer service and lower inventory levels. Even with recent success in developing and maintaining efficient supply chain processes, forecasting inaccuracy remains a significant industry problem. According to the 2003 GMA Logistics Study, more than one-third of all forecasts are inaccurate at the national level.

Type of Store at which Product available for Sale


General Provision Store or Kirana Store : i.e. XYZ Provision Store Departmental Store: i.e. Natwar store or multi propose store Super Stores: i.e. Sahaj Super Store , Dheeraj Sons. Super Mall:

Promotion

Trade promotions vary widely in terms of method, approach, and structure. Many local promotions are run ad-hoc with marginal capital investments by field sales associates, while others require significant investment and involve pre-scheduling in co-operation with national chains. Two of the most commonly used trade promotions in the beverage industry are coupons and rebates. Coupon and rebate management are critical to enhancing relationships between the beverage manufacturer and wholesalers, customers and, in the case of coupons, consumers.

Tools of Promotion
Television Ad Radio Ad News Paper Ad Magazine Ad Hoardings ,Road Shows , Show & Turnament Sponcerships

Coupon programs
which are in essence trade promotions addressed to the final consumer, are mainly executed via discounts at large retailers. The coupon, a certificate with a stated value, can be applied immediately or reserved for the next purchase. A properly executed coupon program enables beverage companies to pass savings directly to the end consumer.

Discounts : Companies Are some time Gives some healthy discounts on their products. Like in some seasons, Festive days , Stock Clearance etc. Also some offers Bye 1 Get 1 Free , Bye 1 Get 80% off on 2nd Purchase. Free Gifts on purchase Trade Discounts : When some Traders , Wholesalers & Retailers Purchase in bulk size so Marketors will give them big

Facilities to Wholesellers,Retailers

Brand Promotion
In Brand Promotion Pepsi had covered many Hollywood stars, Bollywood stars also National & International Sports persons of Various games In Sports in india M.S. Dhoni,Sachin Tendulkar, Shreesanth, S. Raina,I.Sharma, Robin Uthaapa, etc

Brand Promotion
In International level some footballers like David Beckham,Ronaldinhiyo, Theoary Henrry, messi,Steven Geraad etc

Brand Promotion
Some Bollywood & Hollywood Celebrities like Amitabh Bachchan,Shah Rukh Khan, John Abraham ,Ranbir Kapoor, Deepika Padukone, Preeti zinta etc In Hollywood Cindy Crawford, Britney Spears, Justin Timberlake They gives big status n image of brand to the consumer through there presents with brand & inspire to purchase

Show & Event Sponcer

Promotional events

Hording Ads.

Brand V/s Brand

Competitors:
For Pepsi the biggest competition comes from Coke. Even outside India Coke is Pepsi biggest competitor. Because of the fierce competition from Coke, Pepsi has to be very aggressive in promoting itself through advertisements and other methods like sales promotions. This is evident in the immense expenditure Pepsi incurs on its advertisements and endorsements of its brand ambassadors.

Marketing Information System


Marketing Information System:

Definition Marketing Information System consists of people, equipment and procedure to sort, analyze, evaluate and distribute needed timely and accurate information to marketing decision makers. MIS is needed to counter issues like too much information, too little information, too late information and inaccurate information. The type of information required by Pepsi is regarding new products launched by its competitors primarily Coke, promotional schemes and daily schemes of Coke and new brand endorsements etc. Information regarding new product launches is required by PepsiCo so that they can accordingly plan their strategy, while information regarding promotional schemes and daily are required by all the regional and territorial offices so that they can accordingly introduce and test the schemes.

Strategic Control
This is used to examine whether the Company is pursuing its best opportunities with respect to markets, products and channels. To do a proper assessment for strategic control different instruments including marketing audit, marketing effectiveness, marketing excellence review and the ethical and social responsibility review. Marketing audit is a comprehensive, systematic, independent and periodic examination of a companys or business units marketing environment, objectives, strategies and activities with a view to determine problem areas and recommending a plan of action to improve the companys marketing performance.

Rivalry Competition

Celebrities Promotion

CONCLUSION
The Sales and Distribution Network of Pepsi is very strong and almost flawless. PepsiCo India had the first mover advantage when it entered the market and it capitalized on that advantage to grab the market. Franchisee based operations combined with the Companys operations add strength to the overall presence of the Company in the market. Franchisee takes care of its operations and PepsiCo does not interfere in its operations. The Franchisees are required to report to the Company at specific time intervals. The Advertising Campaigns are conceived, implemented by the PepsiCo and Franchisee has no say in that. Promotional activities within every territory are under the territory office and the officials of that office are responsible for the effectiveness and successful implementation of these campaigns.

You might also like