Pepsico case study

By zenith Palash goyal Juhi pawar Hina Agarwal Sangmitra s parihar Karishma Kakkad

Pepsicos entry in India

URBANIZATION

HUGE POPULATION

Untapped customer

why
reached to saturation level in US. Climate Consumptio n 3 bottle per capita

CHALLENGES
Forced to close Coco-cola Foreign brand name could not be used

joint venture

Government intervention

ISSUES TO BE CONSIDERED BY PEPSICO WHILE ENTRY IN INDIA

Political environment
Intent of development of local players only promotion of carbonated drinks was opposed Fear of invasion of foreign brand

Legal environment
Severe restrictions in equity through FERA Dispute in relation to ownership of Pepsi brand name

Cont..

Economic environment
Closed economy. Cold drink industry had just come into existence .

Socio cultural environment

Fear of impact on Health/diet.

1st proposal (rejected by govt.)

In May 1985, PepsiCo had joined hands with one of India's leading business

houses, the R P Goenka (RPG) group, to begin operations in the country.

planned to import the cola concentrate and sell soft drinks under the Pepsi label.

PepsiCo's entry into India revolved around 'promoting and developing the export of Indian agro-based products.

Reasons for Rejection

The government did not accept the clause regarding the import of the cola concentrate.

The use of a foreign brand name (Pepsi) was not allowed as per the regulatory framework.

2nd Proposal
Proposal: 'Green Revolution' in Punjab which would end stagnation in Punjab's rural sector and would help in promoting small and middle farmers. Argument:

This project will create ample employment opportunities for the unemployed youth who has taken the path of terrorism and thereby will help in restoration of peace in Punjab.
Outcome: Argument very well received in the political circles in Delhi and Punjab which finally led to PepsiCo's entry into India in the form of a joint venture with PAIC and Voltas as its partners.

BRAND NAME LEHAR PEPSI

JOB OPPORTUNITIES

Strategy
ADVANCE TECHNOLOGY TWO EXTRA PS PUBLIC OPINION POLITICS

I learned that you are coming here. I am the one that threw Coca-Cola out, and we are soon going to come back into the government. If you come into the country, you have to remember that the same fate awaits for you as Coca-Cola.