COMPARATIVE ANALYSISOF THE MARKETING MIX OF PEPSICO IN INDIA AND USA

What is Marketing Mix??

PEPSI AND ITS 4Ps

PERFORMANCE WITH PURPOSE

PepsiCo believes that its performance is fundamentally connected to its agenda of purpose, which represents the commitment to give back to communities as the company grows.

A B O U T PEPS I O C

PepsiCo is a world leader in convenience

foods and beverages. Its world renowned brands are available in nearly 200 countries and territories.

PepsiCo entered India in 1989 and has grown

to become the countrys largest selling food and beverage companies. more than U.S.$700 million since the company was established in the country in 1989.

PepsiCo India and its partners have invested

Pepsi has official sponsorship deals with three of the four major North American professional sports leagues:

National Football League National Hockey League Major League Baseball Major League Soccer

Pepsi also has sponsorship deals ininternational cricketteams. ThePakistan cricket teamis just one of the teams that the brand sponsors.

PEPSICOS PROFILE Revenues in 2007 is more than $39

billion . Share in Indian carbonated soft drink market is 37 bottling plants in India , of which 16 are company owned and 21 are franchisee owned . PepsiCo s Frito Lay snack division has 3 state of the art plants . It has more than 185 , 000 employees across the world . In India , PepsiCo provides direct employment to 4 , 000 people and indirect employment to 60 , 000 people including suppliers and distributors . India Headquarters : Gurgaon .

BRAND IMAGE OF PEPSIPe p sii a b ra n d th a t e ve ry yo u n g ste r re l te s s a

to .

B u t th i d e fi i l d o e sn t m e a n th a t o th e r a g e s n te y

g ro u p s a re n o t i s u se r s. t

Thus Pepsis brand image is its hip, cool,

lively and refreshing attitude.

ENTRY OF PEPSI IN INDIA PHASE IIn 1985 a proposal with R.P. Goenka group was rejected by the then govt. The proposal involved:

Export of fruit juice concentrates from Punjab in return for the import of cola concentrates. The deal offered was 3:1 export import ratio.

ENTRY OF PEPSI IN INDIA PHASE II:Rs 22 crore Pepsi co project was the second bid. The second proposal encompassed the following activities:Agro Research centre (costing Rs 1.55 crores). A potato and grain based processing unit (costing Rs 8 crores). A fruit and vegetable processing unit (costing Rs &.5 crores). Exports. The Pepsi co would have an equity holding of 39 percent, PAIC, 20 percent and Voltas , 24 percent. The balance was to be placed privately from loans. Imports would be 37 crores and exports a minimum of Rs 194 crores over a 10 year period. Benefits and advantages of proposal includes better market for rice, wheat and fruits in Punjab

Acceptance of the Pepsi offer in India in 1989:Offer was accepted after much negotiations Export import ratio was finally fixed at 5:1 Cold drinks sale was fixed at 22.5% of total sales Lot of political lobbying was involved.

SLOGANS OF PEPSI 19391950: "Twice as Much for a Nickel" 1950: "More Bounce to the Ounce" 19501957: "Any Weather is Pepsi Weather" 19571958: "Say Pepsi, Please" 19581961: "Be Sociable, Have a Pepsi" 1961-1963: "Now It's Pepsi for Those Who Think Young"

(jingle sung byJoanie Sommers) 19631967: "Come Alive, You're in thePepsi Generation" (jingle sung by Joanie Sommers) 19671969: "(Taste that beats the others cold) Pepsi Pours It On". 19691975: "You've Got a Lot to Live, and Pepsi's Got a Lot to Give" 19751977: "Have a Pepsi Day" 19771980: "Join the Pepsi People (Feeling Free)"

19811983: "Pepsi's got your taste for life" 1983: "It's cheaper than Coke!" 19831984: "Pepsi Now! Take the Challenge!" 19841991: "Pepsi. The Choice of a New Generation" (commercial withMichael JacksonandThe Jacksons, featuring Pepsi version ofBillie Jean) 19861987: "We've Got The Taste" (commercial withTina Turner) 19871990: "Pepsi's Cool" (commercial with Michael Jackson, featuring Pepsi version ofBad) 19901991: "You got the right one Baby UH HUH" (sung by Ray Charles for Diet Pepsi) 19901991: "Yehi hai right choice Baby UH HUH" (Hindi- meaning "This is the right choice Baby UH HUH") (India) 19911992: "Gotta Have It"/"Chill Out"

19921993: "Be Young, Have Fun, Drink Pepsi" 19931994: "Right Now"Van Halensong for theCrystal

Pepsiadvertisement. 19941995: "Double Dutch Bus" (Pepsi song sung by Brad Bentz) 1995: "Nothing Else is a Pepsi" 19951996: "Drink Pepsi. Get Stuff."Pepsi Stuffcampaign 19961997: "Pepsi:There's nothing official about it" (During the Wills World Cup (cricket) held in India/Pakistan/Sri Lanka) 19971998: "Generation Next" - with theSpice Girls. 19981999: "It's the cola" (100th anniversary commercial) 19992000: "For Those Who Think Young"/"The Joy of PepsiCola" (commercial withBritney Spears/commercial withMary J. Blige) 1999-2006: "Yeh dil maange more" (Hindi- meaning "This heart asks for more") (India)

2003: "It's the Cola"/"Dare for More" (Pepsi Commercial) 20052006: "An ice cold Pepsi. It's better than sex!"

(Larry Sypolt) 20062007: "Why You Doggin' Me"/"Taste the one that's forever young" Commercial featuringMary J. Blige 20072008: "More Happy"/"Taste the once that's forever young" (Michael Alexander) 2008: "Pepsi Stuff" Super Bowl Commercial (Justin Timberlake) 2008: "epsi is #1" v commercial (Luke Rosin) 2008present: "Something for Everyone." 2009present: "Refresh Everything"/"Every Generation Refreshes The World" 2009-present: "Yeh hai youngistaan meri jaan" (Hindi- meaning "This is our young country my baby") (India) 2009-present: "My Pepsi My Way"(India) 2009-present: "Refresca tu Mundo" (Spanish- meaning "Refresh your world") (Latin America)

PRODUCTS

PepsiCo Brands

Pepsi-Cola Frito Lay Tropicana Quaker Gatorade

Products of Pepsi-Cola(In U.S.A)

Pepsi Diet Pepsi Caffeine Free Diet Pepsi Diet Pepsi Max Jazz Diet Pepsi Diet Pepsi Lime Diet Pepsi Vanilla Pepsi Wild Cherry Diet Pepsi Wild Cherry Pepsi ONE Mountain Dew Diet Mountain Dew Mirinda Slice Aquafina Aquafina Alive Aquafina FlavorSplash Aquafina Sparkling

Products of Pepsi-Cola(In India)Pepsi Diet Pepsi Mountain Dew Mirinda Slice 7UP Aquafina

Products of Frito Lay(In U.S.A) Lay's potato chips Baked Tostitos tortilla chips Doritos Nacho Cheese Flat Earth

Products of Frito Lay(In India)PepsiCos snack food company, is the leader in the branded salty snack market. It manufactures : Lays Potato Chips Cheetos extruded snacks Uncle Chipps Aliva- Tasty Crackers and traditional namkeen snacks under the Kurkure and Lehar brands

Products of Tropicana(In U.S.A)

Tropicana Pure Premium juices Tropicana Twister juice drinks Tropicana Smoothies Tropicana Pure Tropics juices Dole juices (License) Tropicana 100 juices Naked Juice

Products of Tropicana(In India)Tropicana 100% Juices(sold as tropicana 100%) Juice Beverages and Nectars(sold as tropicana)

Products of Quaker(In U.S.A)

Quaker Oatmeal Quaker Instant Oatmeal Quaker Oatmeal Breakfast Squares Cap'n Crunch cereal Life cereal Quaker Oatmeal Brown Sugar Bliss Quaker Oatmeal Honey Nut Heaven Quaker 100% Natural cereal Quaker Squares cereal Quisp cereal King Vitaman cereal Quaker Oh's! Cereal Mother's cereal Quaker grits Quaker Oatmeal-to-Go Aunt Jemima mixes & syrups Quaker rice cakes Quaker rice snacks (Quakes) Quaker Chewy granola bars

Quaker Dipps granola bars Rice-A-Roni side dishes Pasta Roni side dishes Near East side dishes Puffed Wheat Harvest Crunch cereal Quaker Baking Mixes Spudz snacks Crisp'ums baked crisps Quaker Fruit & Oatmeal bars Quaker Fruit & Oatmeal Bites Quaker Fruit and Oatmeal Toastables Quaker Soy Crisps Quaker Bakeries

Products of Quaker(In India)

Quaker Oats(In 2006)

Products of Gatorade(In U.S.A)Gatorade Thirst Quencher Gatorade Frost Thirst Quencher Gatorade Ice Thirst Quencher Gatorade Xtremo Thirst Quencher Gatorade X-Factor Thirst Quencher Gatorade Fierce Thirst Quencher Propel Fitness Water

Products of Gatorade(In India)

Gatorade Sports drink(In 2004)

Price of Pepsi in

US

COMPARISON STATS.

Before 1999, a 20-ounce beverage the Pepsi products have risen to $1.25 a bottle from $1.15 per bottle. Currently, the C-Store charges $1.19 for 20-ounce Pepsi products, while 7-11 charges $1.29.

C O M PA R I O N C O N T D S

After 1999, Analysts said 12-packs of cans, which had been selling for $1.99 in many supermarkets, will rise to $2.49 or $2.79 after the increase takes effect.

PE PS I I D I N A

Pepsi - Yeh Hai Youngistan Meri JaanPepsi Yeh Hai Youngistan Meri Jaan

RISING COSTS. 2010.

TIMES OF INDIA , 3RD FEB,

After the price hike, Coke's 300 ml returnable glass bottles are now available for Rs 12 from its earlier price of Rs 10. Besides, the company has also increased the prices of the 2 litre PET bottles of the soft drink brands by Rs 5 from Rs 55.

PLACEPAH/PI own the Pepsi brands. They sell the

concentrate to CSA who manufactures and bottles the Pepsi products and distributes it to consumers.

CSA distribute Pepsi via various channels

e.g. major supermarket chains, convenience stores, smaller milk bars, restaurants and fast food outlets (e.g. KFC, Pizza Hut, Oporto).

Service the right pack size at the right price, in the right place at the right time.Decisions with respect to distribution channel

focus on making the product available in adequate quantities at places where customers are normally expected to shop for them to satisfy their needs.

Depending on the nature of the product,

marketing management decides to put into place an exclusive, selective or intensive network of distribution , while selecting the appropriate dealers or wholesalers.

Direct DistributionDelivery of post mix cylinders & handling of key

accounts: The key accounts are different wholesalers, restaurants and hotels like Pizza Hut, KFC, Metro which serve as a place for key sale.

These are known as national key accounts and are

very important in terms of competition.

Export Parties

Indirect Distribution Through Base market distributors Through Outstation distributors

Before delivering the product some certain guiding principles are followed or the assessment of distributors capability:

vApplicant must have 20 to 25 vehicles (depending on the area). vApplicant must have 20,000 cases of empty bottles. vApplicant must deposit Rs. 1,00,000 as a security.

This is usually done through taking over key revenue

areas. If the distributor does not achieve its sales target, the distribution is taken back and an addition of new distributor is done. Therefore Pepsis supply is low supply uncertainty.

Some of its supply source capabilities are:

Less breakdowns High quality Flexible supply capacity Mature production process

PROMOTION Advertising Strategy of PepsiPepsis target audience are mostly

teens and young adults and their advertising reflects this in every possible way. strategy and image to reflect the target's interests.

The company changes its advertising Pepsi makes sure that the

advertisements reflect to the target audiences interests and nostalgia.

CONTD

The advertising strategy includes cool, hip The advertising is mostly creative and has

promos to attract more of the target audience. different elements like music and sports other than bollywood. advertising and attracts target audience by giving access to options like downloads, gaming, music mixing applications etc..

Pepsi.com also plays an important role in

PROMOTION(In U.S.A). In US Pepsi Advertisement does not have any celebrity and

does not try to influence by their idols.

US Pepsi Promos give knowledge about the ingredients and promote it as sugar free. The diet Pepsi Advertisement of US shows that it provide energy and has zero calories US Pepsi Promo is more creative and innovative to influence the customers. Pricing is never provided in the advertisement of Pepsi in US. More of the liberal thoughts are shown in the promos of Pepsi in US. Pepsi is promoting their drink by showing it energetic, healthy and safe to drink

Pepsi Promos In India

In India Pepsi has Dhoni, Deepika, Ranbir and John as their brand ambassadors. The promos of Pepsi My can is viewed in India where Dhoni with other players of cricket Team can be seen. Pepsi promo in India emphasize on the smartness of child to save Pepsi from cricketers. Pepsi is targeting customers of all age group and use games, contest to promote the product. The promo of Pepsi in India is more concentrated towards the celebrities and try to influence people by showing their idols drink same drink. Pepsi is promos in India is more dramatic and lack message and focus on showing people that other are also drinking the same drink. Some of the past Pepsi Advertisement also included price and tried to influence people on the basis of price.

Pepsi Promos In India

DIFFERENCE IN PROMOSIndia USIn India more emphasize is given In US more emphasize is given on celebrities on the ingredients In India promos contest are also In US promos more of benefits shown to promote the product to health is shown. In India promos try to influence people on the emotions and beliefs In India Price is all taken into consideration to attract Customers Less creative Brand ambassadors are used In US Promos try to give facts and influence people In US Promos price is never shown to influence customers More creative No such Brand ambassadors are used

Some of Pepsis successful Campaigns

Yeh Dil Maange More

Bubbly Campaign

Youngistan Campaign

Yeh hai Youngistaan Meri Jaan

Youngistan Campaign

About Youngistan

This campaign has two new celebrities Ranbir Kapoor

and Deepika Padukone who acted in the two mosttalked about Hindi films in 2007, to accompany brand ambassador Shah Rukh Khan. Youngistan reflects the mood of Indias youth, which is today keen to take the ropes and drive India, says Punita Lal, executive director, marketing, PepsiCo.

This time we wanted an all-encompassing theme.

CONTDYoungistan, hopes to cash in on

the buzz surrounding todays youngsters.

Youngistan is not so much a place

and it is a state of mind of todays youth. While the term is new, what it stands for the GenNext attitude is not new.

Segmenting patternDemographics: The Campaign targets teens and young

adults of metros and phase II cities.

Psychographics: The campaign attempts to capture the

youth of today by focusing on their personality ,lifestyle and attitude of youth through the advertisement

Targeting StrategyThe Youngistaan Campaign uses

undifferentiated targeting strategy to reach out to its target audience. That is it launched youngistaan campaign for all the target audience in the same way.

PositioningThe campaign positioning is done on the basis

of user approach i.e a personality based approach where a users image or association rubs off on the brand image. The user could be a celebrity or an ordinary user. For this campaign Pepsi used the three most popular celebrities of the last year i.e Shahrukh Khan, Ranbir Kapoor, Deepika Padukone

Placement of the CampaignThe campaign was first launched on T.V during the tri-

series matches in February.

The campaign is launched

with a 360-degree activation across radio, outdoor, modern trade, Web and wireless platforms. Pepsi Cool Zone and is planning to make it a responsive peer group site where youngsters can visit and make comments on any topic. MTV, a show where youth can voice their thoughts.

Pepsi has launched a website for Youngistan inside the

Pepsi Youngistan is also sponsoring Wassup Youngistan on

Youngistan T.V advertisement

Advertising Agency for YoungistanJWT ( J. Walter Thompson), ranks as

the largest advertising agency brand in the U.S. and as the fourth-largest full service network in the world. It was the first agency to be associated with anthropology and the study of consumer behavior.

Competitors for Youngistan.

Competition for Pepsi has always come

from its arch rival Coco-Cola. Coke kept up with Pepsis Youngistan by launching a campaign Jashn Mana le staring Hrithik Roshan. Sprite, a subsidiary of Coco-Cola company has also launched an ad campaign called Hindustan, mocking the Pepsis Youngistan campaign.

Conclusion As its earlier campaigns Pepsi through Youngistan campaign aims at capturing its target audience in another cool, funky, attractive way.

THANK YOU

PRESENTED BY: NISHITA AGGARWAL(D 04) TISHA GUGLIANI(D 05) BALVINDER KAUR(D 06) SOMADITYA BANERJEE(D 26) JAYANT MENDIRATTA(D