PEPSICO INC

GROUP-1

NAME ROLL NO.

ABHISHEK SHRIVASTAVA 20PGDM003

ADITHYA 20PGDM008

PRAMIT MAZUMDER 20PGDM038

RAJARSHI NIMAY 20PGDM040

SANKALP SHUKLA 20PGDM045

VANSH MALHOTRA 20PGDM061

Introduction
 Global food, snack and beverage company.
 Serves more than 200 countries and territories around the world.
 Diversified portfolio and includes 23 brands that generate more than $1
billion each in estimated annual retail sales.
 PepsiCo generated more than $67 billion in net revenue in 2019
 Employs around 263,000 individuals worldwide

Mission statement
To provide consumers around the world with delicious, affordable, convenient and
complementary foods and beverages from wholesome breakfasts to healthy and
fun daytime snacks and beverages to evening treats.
PepsiCo Product Mix
PepsiCo has quite a diverse array of products and it is the second biggest in the global
food and beverage industry. Many products are added after PepsiCo acquired others
because of this are a large number of product lines. The following are the current product
lines of PepsiCo:
• Soft drinks
• Energy drinks
• Cereal
• Rice snacks
• Snacks
• Side dishes
• Breakfast bars
• Sports nutrition
• Bottled water
• Other merchandise
PepsiCo Pricing Strategy
As PepsiCo has a wide product mix so it is considerably varied hence it has a huge number of
brands and product lines. So there pricing strategies used are different but if analyzed they
are broadly divided into two main PepsiCo’s pricing strategies:

• Market-oriented pricing strategy

• Hybrid Everyday Value pricing strategy

 Market-oriented pricing strategy is used to price most of the PepsiCo’s products. The
company’s objective in using this strategy is to ensure that its prices are competitive,
based on competitor’s prices and the prevailing market conditions.

 Hybrid Everyday Value is PepsiCo’s pricing strategy for some of its products, especially
soft drinks. The company’s objective in using this pricing strategy is to close the gap
between regular/everyday prices and discounted holiday prices and make consumers to
buy more of its soft drinks every day and not just during the holidays to boost profits on
soft drink sales.
Competitors
 Coca Cola

 Pepsico's greatest and most formidable rival.

 Coca-Cola mainly relies on a diversified product range within the beverage industry.
 Coca cola is also renowned for its outstanding distribution capability.
 Coca-Cola mainly relies on a diversified product range within the beverage industry
and has few products beyond the industry.

 Red Bull

 Rival to Pepsico's energy drink products.

 Small product portfolio.
 Competitor to energy drinks by Pepsico including Gatorade.
 Gatorade calls its core target the “competitive athlete,” the user who exercises 4-6
times a week, wins on the field and attributes a large part of his or her identity to
playing sports.
 Nestle

 Competes with the brand in particular product segments, such as bottled water.
 Nestle's Pure Life and Poland Spring are two bottled water brands of Nestle.
 Aquafina adopts a competitive pricing strategy as it provides good quality of the
product and low calorie drinking water.

 Dr Pepper Snapple

 Follows aggressive acquisitions to expand its market and customer base and includes
mainly soft drinks.
 Pepsico meanwhile has an extensive food and drink range.

 Kellogg’s

 Kellogg's is one of the biggest Pepsi rivals due to their great marketing campaigns
and quality value.
 Quaker Oats aims at maintaining its customer loyalty by offering the products at a
reasonable price without compromising on the quality of the products
Distribution Channels
● Direct store delivery
- Products delivered directly to retail stores and is the oldest method.
- To increase the visibility of their brand and merchandise
- Used for products that are sensitive to marketing and promotions
● Warehouse distribution
- For products that are less delicate and are perishable.
- Economical
● Third party distribution
- Mainly five retail channels : Supermarkets, retail stores, restaurants, convenience
stores and vending machines.
● Ecommerce/ Online grocery
- Investments by the company are increasing.
- Launched two D2C websites Snacks.com and PantryShop.com in May 2020.
- Will enable them to compete with emerging brands.
Marketing Communication Strategy
 Positioning- PepsiCo has positioned itself in a wide market with 22 brands that range
from snacks to bottled water.

 Channels- PepsiCo has always invested heavily in marketing and advertisement budget.
While this fund used to be used in print and media, now its used in social media and
digital marketing.

 Digital Marketing- As most customers migrated online, having a digital presence

became a necessity. So, PepsiCo started focusing on it. Their 20 min long ‘Bring Home
Happiness’ was so viral that it was viewed nearly a billion times.

 Innovation - PepsiCo has always been innovative with their packaging and the flavors
and quality of products to stay on top. The innovative packaging is used to engage and
refresh existing consumers while also attracting new ones.

 Good Sponsorship - Pepsi invests heavily in partnerships and sponsorships. They

invest in sports competitions and sport persons. In 2015 they partnered with NBA, in
2016 with BCCI and in 2017 with UEFA Champion’s league.
Analysis from consumer research

● PepsiCo is a well known brand with everyone

familiar with 60% of the products while 25%
people are aware about all the products
● 70% consumers prefer traditional distribution
channels like retail stores and supermarkets
● Consumers rates Taste and Nutritional value as the
most important aspects while purchasing a PepsiCo
product
● More than 50% consumers prefer competing
products as their preference while less than 20%
prefer PepsiCo products
Employee Perception
- Interviewed two people were from Shipping and Logistics and 1 from Warehousing.
- Flavour/Taste : made Pepsico stand out from the rest.
- Appealing to the youth : 16-25 years.
- Focuses more on Local/Kirana stores - to reach even the remote corners of this
country.
- Consider Coca-Cola as their main competition, both in India as well abroad.
- Witnessed a growing demand of larger/combo packs.
- Started investing in E-commerce channels ; both B2B and B2C.
- Consumers are now looking for more in-house experience and seeking more
convenience.
- Active role in CSR
Recommendations
● PepsiCo has the potential to expand its presence in developing countries to generate
more sales from markets outside the Americas.
● The company should try to capture more of the aging population’s market share since
PepsiCo mainly caters to the needs of the youth.
● To sustain their market share and their footprint in the industry, PepsiCo needs to
continue expanding their market share in the regions where they already have a large
presence.
● The company needs to expand the availability of products in certain segments like
Energy Drinks and Packaged Water into Tier 3 and lower tier cities.
● In order to pursue future new product innovations, PepsiCo can put itself at the leading
edge of the Heath trend in the industry by rising R&D funds.
● As staying fit is the norm nowadays, PepsiCo should also start focus on the healthier
aspects of their products since this will continue to grow in the future.
Thank You !