marketing strategies

1. COMPANY PROFILE-PEPSI CO. (US)<br />PepsiCo is a world leader in convenient foods and beverages, with revenues of about $27 billion and over 143,000 employees. The company consists of the snack business of Frito-Lay North America and the beverage and food businesses of PepsiCo Beverages and Foods, which includes PepsiCo Beverages North America (Pepsi-Cola North America and Gatorade/Tropicana North America) and Quaker Foods North America. PepsiCo International includes the snack businesses of Frito-Lay International and beverage businesses of PepsiCo Beverages International. PepsiCo brands are available in nearly 200 countries and territories.<br />Many of PepsiCo's brand names are over 100-years-old, but the corporation is relatively young. PepsiCo was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay. Tropicana was acquired in 1998 and PepsiCo merged with The Quaker Oats Company, including Gatorade, in 2001.Pepsi-Cola Company - Pepsi-Cola (formulated in 1898), Diet Pepsi (1964) and Mountain Dew (Introduced by Tip Corporation in 1948). Frito-Lay, Inc. - Fritos brand corn chips (created by Elmer Doolin in 1932), Lay's brand potato chips (created by Herman W. Lay in 1938), Cheetos brand cheese flavored snacks (1948), Ruffles brand potato chips(1958) and Rolled Gold brand pretzels (acquired 1961).<br />Pepsi co is the world leader in the food chain business. It consists of many companies amongst which the prominent one is Pepsi cola, frito lay, Pepsi food international, pizza hut, and KFC and taco bell. The group is presently into three most profitable businesses namely, beverages, snack foods and restaurants. It has scores of big brand available in nearly 150 countries across the globe.<br />The beverages segment primarily market Pepsi diet, mountain dew and other brands worldwide and 7UP outside the U.S. market. They are positioned in close competition with Coca-Cola inc. of USA. A point to be noted is that coca cola get 80% of its profit from international loperation while same figure of Pepsi co. stand at 6%, the segment is alsoin the bottling plants and distribution facilities.<br />When Coca-Cola changed its formula in 1985, Pepsi stepped up itscompetition with its long time archival claiming victory in the cola wars.Coke and Pepsi expanded their rivalry to tea in 1991 when Pepsi formeda venture with #1 Lipton in response to coke’s announced venture with<br />nestle (Nestea) it has won over 30% of the ready to drink tea market, a<br />part of the so called quot;
new age” beverages segment.<br />The beverage industry has witness the phenomenal growth over the lastfew years necessitating capacity increase and builds up of commensurateinfrastructure to meet the businessgrowth, which is accordingly matched.<br />PepsiCo’s success is the result of superior products, high standards ofperformance, distinctive competitive strategies and the high integrity of our people.<br />PepsiCo India<br />PepsiCo entered India in 1989 and has grown to become the country’s largest selling food and Beverage Company. 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.<br />PepsiCo nourishes consumers with a range of products from treats to healthy eats that deliver joy as well as nutrition and always, good taste. PepsiCo India’s expansive portfolio includes iconic refreshment beverages Pepsi, 7 UP, Mirinda and Mountain Dew, in addition to low calorie options such as Diet Pepsi, hydrating and nutritional beverages such as Aquafina drinking water, isotonic sports drinks - Gatorade, Tropicana 100% fruit juices, and juice based drinks – Tropicana Nectars, Tropicana Twister and Slice, non-carbonated beverage and a new innovation Nimbooz by 7Up. Local brands – Lehar Evervess Soda, Dukes Lemonade and Mangola add to the diverse range of brands.<br />PepsiCo’s foods company, Frito-Lay, is the leader in the branded salty snack market and all Frito Lay products are free of trans-fat and MSG. It manufactures Lay’s Potato Chips, Cheetos extruded snacks, Uncle Chipps and traditional snacks under the Kurkure and Lehar brands and the recently launched ‘Aliva’ savoury crackers. The company’s high fibre breakfast cereal, Quaker Oats, and low fat and roasted snack options enhance the healthful choices available to consumers. Frito Lay’s core products, Lay’s, Kurkure, Uncle Chipps and Cheetos are cooked in Rice Bran Oil to significantly reduce saturated fats and all of its products contain voluntary nutritional labeling on their packets.<br />The group has built an expansive beverage and foods business. To support its operations, PepsiCo has 36 bottling plants in India, of which 13 are company owned and 23 are franchisee owned. In addition to this, PepsiCo’s Frito Lay foods division has 3 state-of-the-art plants. PepsiCo’s business is based on its sustainability vision of making tomorrow better than today. PepsiCo’s commitment to living by this vision every day is visible in its contribution to the country, consumers and farmers.<br />COMPANY PROILE :JAIPURIA GROUP IN INDIA<br />An ambitious venture originates in an ingenious idea. The Jaipuria Group was a vision of its founder and it has transformed into a corporate giant in India displaying impeccable credentials. Today, it’s a multi-product, multi purpose business conglomerate.The future holds promises for those who foresee the days ahead and adopt corporate policies accordingly. The Jaipuria Group was always a forerunner in this respect. Due to the business acumen and farsightedness of the leadership, it has established a business empire with diverse interests in food & beverages, textiles, education, real estate, waste management & energyprocurement, Ayurvedic products and manganese mining. Today Jaipuria’s portfolio boasts of association with majors like PepsiCo as bottlers. Leveraging on the trust of its associates, clients and employees, the group is surging ahead towards a bright future.<br /> <br />JAIPURIA GROUP is a Rs.1500 Crore, family controlled, reputed business house with over a century of operations in diversified fields.<br />The group as on today can boast of expertise and leadership in the fieldsof food and beverages, textiles and real estate development with variedinterests in a wide range Of products and services.The Jaipuria Group under the leadership of the three brothers SK Jaipuria,RK Jaipuria and CK Jaipuria has today become one of the leading business houses of the country.<br />PepsiCo India’s expansive portfolio<br />Refreshment beverages<br />PepsiCo India's expansive portfolio includes iconic refreshment beverages Pepsi, 7UP, Nimbooz, Mirinda, Slice and Mountain Dew; in addition to low calorie options such as Diet Pepsi, hydrating and nutritional beverages such as Aquafina drinking water, isotonic sports drinks - Gatorade, Tropicana 100%, Tropicana Twister fruit juices.<br /> <br /> <br />Pepsi, 7 UP, Mirinda and Mountain Dew, in addition to low calorie options– Diet Pepsi and 7Up Light; hydrating and nutritional beverages such as Aquafina drinking water, isotonic sports drinks - Gatorade, and 100% natural fruit juices and juice based drinks – Tropicana, TropicanaTwister and Slice. Our local brands – Lehar Evervess Soda, Dukes Lemonade and Mangola complete our diverse spectrum of brand.<br />PepsiCo's food division <br />Frito-Lay is the leader in the branded salty snack market and all Frito-Lay's products are free of trans-fat and MSG. It manufactures Lay's Potato Chips, Cheetos extruded snacks, Uncle Chipps and traditional snacks under the Kurkure and Lehar brands. The company’s high fibre breakfast cereal, Quaker Oats and low fat and roasted snack options like Aliva enhance the healthful choices available to consumers.<br /> <br />PepsiCo SKU’s<br />In 1957 the name of the company was changed to Tropicana Products,headquartered in Bradenton, Florida. The company went public in 1957,was purchased by Beatrice Foods Co. in 1978, acquired by KohlbergKravis & Roberts in 1986 and sold to The Seagram Company Ltd. in1988. Seagram purchased the Dole global juice business in 1995.PepsiCo acquired Tropicana, including the Dole juice business, inAugust 1998.<br />Today the Tropicana brand is available in 63 countries. Principal brandsin North America are Tropicana Pure Premium, Tropicana Season’sBest, Dole Juices and Tropicana Twister. Internationally, principalbrands include Tropicana Pure Premium and Dole juices along withFrui'Vita, Loóza and Copella. Tropicana Pure Premium is the thirdlargest brand of all food products sold in grocery stores in the United States.<br />Gatorade sports drinks were acquired by the Quaker Oats Company in1983 and became a part of PepsiCo with the merger in 2001. Gatorade isthe first isotonic sports drink. Created in 1965 by researchers at theUniversity of Florida for the school's football team, quot;
The Gators,quot;
Gatorade is now the world's leading sports drink<br />Vision of PepsiCo<br />PepsiCo Mission<br />quot;
To be the world's premier consumer Products Company focused onconvenience foods and beverages. We seek to produce healthy financialrewards to investors as we provide opportunities for growth andenrichment to our employees, our business partners and the communitiesin which we operate. And in everything we do, we strive for honesty,fairness and integrity.quot;
<br />PepsiCo in India<br />PepsiCo is a world leader in convenience foods and beverages, with2007 revenues of more than $39 billion and more than 185,000employees across the world. Its world renowned brands are available innearly 200 countries and territories. PepsiCo gained entry to India in1989 by creating a joint venture with the Punjab government-ownedPunjab Agro Industrial Corporation (PAIC) and Voltas India Limited.This joint venture marketed and sold Lehar Pepsi until 1991, when theuse of foreign brands was allowed; PepsiCo bought out its partners.<br />Advertisement and Add Concept:-<br />Advertisements are cost effective means to communicatemessages and ideas to build brand preferences andawareness and it is one of the most important tools whicha company uses to direct persuasive communication todirective buyers in public or to educated people to avoidhard drink and so on.<br />The basic objective of advertising is sales promotion salespromotion expenditure have been increasing as a percentof budget expenditure annually and the growth is likely tocontinue in future. Our celebrities signed by the PepsiCoare as follows:<br />For PepsiCo.<br />Cricketers:-<br />•<br />Sachin Tendulka<br />•Rahul Dravid•Mohd. Kaif.•Yuvraj singh•Harbhajan singh.•Sourav Ganguly.<br />•Zaheer Khan•Ajit Agarkar<br />Cine Stars<br />•Kareena Kapoor<br />Ranbeer Kapoor•Shahrukh•Kajol•Adnan Sami•Fardeen Khan•Amitabh Bachhan.<br />Tennis Stars :-<br />•Leander Paes<br />•Mahesh Bhupati<br />Football Players<br />•Cyrus Broacha<br />•Bhaichung Bhutia<br />KEY ELEMENTS OF THE TRADE<br />1.JO DIKHTA HAI WHO BIKTA HAI: - This is a company slogan,<br />it is to increase the visibility of the product, the company stressesmore on increasing the number of outlets than on the volumes of sales.That is the reason of the company providing visibility courses to theshopkeepers.<br />2.A BOTTLE THAT IS CHILLED IS SOLD: - In the industry it is<br />considered that a bottle is chilled or putting in cooling compartment issold. That is the reason the policy providing triage’s come up becauseaccording to the contract the shopkeeper has to keep only & onlyPepsi’s products in the visicooler.<br />3.A BOTTLE LOSS TO COKE IS A GAIN TO PEPSI: -The<br />competition is so strong between the two companies i.e. fighting is onfor each bottle that is to be sold in the market. Competitive biddinggoes on for each & every prestigious outlet in their region.Monopolizing entries & fat foods joint s is their first priority.<br />4.EMPTY kA HI KHEL HAI: - [Empty plays an important role]: - As<br />discussed earlier the distribution points keeps on putting up<br />distribution schemes for retailers i.e. like two bottles of solution free.<br />with the purchase of every one carat of solution. Now these schemeshave timed well keeping minding the environmental conditions &schemes provided by the other company. These schemes are oftwenty-four hours duration. If a scheme is launched & there is noempty in the market for refill, the whole effort goes in vain that is thereason is said ki sub empty ka khel hai.<br />DISTRIBUTION STRATEGIES<br />A Company can choose any of the following distribution types: -<br />•Exclusive Distribution<br />•Selective Distribution<br />•Intensive Distribution<br />“PEPSI” HAS ADOPTED THE INTENSIVE DISTRIBUTION<br />STRATEGY.<br />INTENSIVE DISTRIBUTION:<br />A Strategy of intensive distribution is characterized by placing the goodsor services in as many outlets as possible. When the consumer requires agreat deal of location convenience, it is important to offer greaterintensity of Distribution. This strategy is generally used for convenienceitems such as Tobacco, gasoline, and soap, snack foods & bubblegum.<br />Manufactures are constantly tempted to move from exclusive or selectivedistribution to more intensive distribution to increase their coverage andsales and you could find Pepsi in nursing homes, confectionery shops,departmental stores; you name it & Pepsi is available there.<br />DISTRIBUTION CHANNEL REDIFINED<br />Pepsi has redefined distribution to strengthen their competitive advantagein the emerging consumer and market scenario. Their earlier focus was todrive wide availability and enable easy access to their brands forconsumers. Now they seek to go well beyond this distribution paradigm.Their new approach is more holistic touching consumers in multiple waysat the point of purchase and more importantly, creating opportunities forcustomers to receive brand message and experience our brands.<br />They are proactively addressing these emerging trends by approachingdistribution and channels in a much broader way. They are shiftingemphasis from mere reach or availability expansion to touchingconsumers with a 3- way convergence- of product availability, brandcommunication and higher level of brand experience.<br />They are thus going beyond delivering products and creating greater<br />engagement and interaction around the purchasing experience.<br />Pepsi’s reinvention of distribution is built on an understanding ofemerging consumer trends, the retail environment and the growth driversof our brands.<br />Pepsi’s distribution system is a key external resource. Normally it hastaken years to build and cannot be easily changed. It ranks in importancewith key internal resources such as manufacturing, research, engineeringand field sales personals. It represents significant corporate commitmentto set policies and practices that constitute the basic fabric on which iswoven an extensive set of long run relationship.<br />CHANNEL FUNCTION AND FLOWS<br />Marketing channel perform the following functions-<br />•To gather the information about potential and current customers,<br />and competitors.<br />•To reach agreements on Price•To list orders with manufacturers.•They provide the successive storage and movement of physical<br />products.<br />It can be defined as backward and forward integration i.e. starting fromsupplier of the raw material to the end customer. The physical flow ofPepsi from its manufacturing unit at Kosi (Varun Beverages) to variousretailers in Sahibabad is as follows:<br />PRODUCT & PACK PROFILE<br />PRODUCT: -<br />Carbonated Soft Drinks (CSD) or Soft Drinks as they are popularlyknown are one of the largest FMCG market in the whole world with thetotal annual sales around $40 billion. This product is generally availablein four kinds of packing.<br />•Glass Bottles<br />•<br />Pet Bottles<br />•Cans<br />•Fountain rim<br />FLAVORS: -<br />•Cola•Orange•Clear Lemon•Cloudy Lemon•Berry•Ginger•Mango Slice<br />Out of these products the 70% of the sales of the company come from theCola brand, which is the market leader in the most part of the country ofthese kinds of packaging in which the product is available make them80% of the sales come from these bottles. The businesses of returnablebottles are very cumbersome and make the market very complex anddemanding.<br />FACILITIES PROVIDED BY THE COMPANY TO THE<br />RETAILER<br />1. VISI COOLER<br />•65 Liter•110 Liter•120 Liter•165 Liter•200 Liter•210 Liter•220 Liter•300 Liter•320 Liter•330 Liter•500 Liter<br />According to outlet nature, volume & investment of the outlet.<br />2.SCHEMES OF VOLUME PURCHASE<br />•Cash discount<br />•Card discount (sampling)<br />3. DISPLAY MATERIAL<br />•Stickers•Banners•G.S. Boards•D.P.S. Boards•Racks•Counters•Umbrellas<br />FINDINGS & OBSERVATION<br />The reports of each phase of the project had to be supplemented by theinformation, data, facts and figures and significant findings and observation to supportthe feasibility of decisions to be taken on the basis of the Retail mapping Summary or theCDR. The information so recorded in each phases of the project had to be listed in orderof their relevance and seriousness and presented in a form to facilitate immediateinference.<br />Some of the important observations have been listed below:<br />Soft drink business’s behavior is not governed by brand loyalty so the availability<br />of the right brand, at the right place, at the right time is the key for winning<br />consumer in soft drink business.<br />The most important and satisfying observation was that, PEPSI had<br />approximately 64% market share in the soft drinks market in Dehradoonandsome of its brands like Mirinda Orange and Mountain Dew were performingabove standards apart from PEPSI Cola in spite of the Coca Cola with two colaflavor packs i.e., Coke and Thumps up.<br />The present distribution system of PEPSI is the best in the entire FMCG industry<br />in Dehradoonand the major strength<br />of PEPSI. The enhancement in the distribution network would definitely increase<br />the market share of PEPSI.<br />The retailers played a very critical role in the increment in the sales volume of the<br />product and the had to be kept satisfied in order to increase the market share byoffering better schemes, discounts, display materials such as VISI’s, racks,counter, signage, wall paintings and better amount for purchase of shelf space fordisplay.<br />The existence of sub-dealers and super stockiest are also the major area of<br />problem, as they do not move the schemes and other display materials and incentives information to the retailers, which is one of the reasons for the<br />dissatisfaction of retailers.<br />The cut throat competition between PEPSI and COKE had lead to the never<br />ending cola war and price war which has brought down the profit margins whichis one of the major grievances apart from the common complains pertaining toschemes, incentives and display materials.<br />The other major issue was the supply of PEPSI from the bottling plants in Delhi<br />and Punjab against the company policies. These plants supplied the products at<br />discounted rates and violated merchandising principles of PEPSI.<br />Another critical issue was the presence of duplicate products of PEPSI in the<br />market. The details of these outlets have been surrendered to the company for<br />action against these outlets.<br />The position of PEPSI in the corporates was not up to the mark and Coca Cola<br />had a better scene in this context. One of the reasons can be assigned to the<br />product positioning of PEPSI and Coca Cola.<br />