2. • PepsiCo entered India in 1989
• top five markets in terms of growth of the soft drinks market
PEPSICO IN INDIA
• Industry : Food and Beverage
• Established : 1898 by Caleb Bradham
• Marketed : 200+ country
• Brand : 22
• Revenue :US$66.4 billion (2013)
• Net income :US$6.7 billion (2013)
• Employees :300,000 (2013)
• Key people :Indra Nooyi (Chairperson & CEO)
3. Acquisitions and divestments
• Between the late-1970s and the mid-1990s, PepsiCo expanded
via acquisition of businesses outside of its core focus of packaged
food and beverage brands.
• PepsiCo also previously owned several other brands that it later
sold so it could focus on its primary snack food and beverage
lines. Brands formerly owned by PepsiCo include: Pizza Hut, Taco
Bell, KFC, Hot 'n Now, East Side Mario's, D'Angelo Sandwich
Shops, Chevys Fresh Mex, California Pizza Kitchen, Stolichnaya (via
licensed agreement), Wilson Sporting Goods and North American
Van Lines.
• purchased the orange juice company Tropicana Products in 1998
• merged with Quaker Oats Company in 2001, adding with it
the Gatorade sports drink line.
• 2009, acquire the two largest bottlers of its products in North
America: Pepsi Bottling Group and PepsiAmericas.
4. • The Coca-Cola Company has historically been considered
PepsiCo's primary competitor in the beverage market.
Competition
• snack food market - Kraft Foods
• soda market - RC ColaCola , Turka , Kola RealInca Kola , Zam
Zam Cola , Mecca-Cola , Virgin Cola , Parsi Cola , Qibla Cola ,
Evoca Cola , Corsica Cola , Breizh Cola , Afri Cola
5. Products and brands
• PepsiCo's product mix as of 2012 (based on worldwide net
revenue) consists of 63 percent foods, and 37 percent
beverages. On a worldwide basis, the company's current
products lines include several hundred brands that in 2009
were estimated to have generated approximately $108 billion
in cumulative annual retail sales.
• The primary identifier of a food and beverage industry main
brand is annual sales over $1 billion. As of 2013, 22 PepsiCo
brands met that mark: Pepsi, Mountain
Dew, Lay's, Gatorade, Tropicana, 7 Up, Doritos, Lipton
Teas, Quaker Foods, Cheetos, Mirinda, Ruffles, Aquafina, Pepsi
Max, Tostitos, Sierra Mist, Fritos, and Walkers.
6. Areas of business
The structure of PepsiCo's global operations has shifted multiple
times in its history as a result of international expansion, and as
of 2010 it is separated into four main divisions:
• PepsiCo Americas Foods,
• PepsiCo Americas Beverages,
• PepsiCo Europe,
• PepsiCo Asia,
• Middle East and Africa
As of 2009, 71 percent of the company's net revenues came
from North and South America, 16 percent from Europe and 13
percent from Asia, the Middle East and Africa. Approximately
300,000 people are employed by PepsiCo worldwide as of 2013.
7. PepsiCo Asia, Middle East & Africa
• This operating division of PepsiCo covers Asia, the Middle East
and Africa. In addition to the production and sales of several
worldwide Pepsi-Cola, Quaker Foods and Frito-Lay beverage and
food product lines (including Pepsi and Doritos), this segment of
PepsiCo's business markets regional brands such
as Mirinda, Kurkure and Red Rock Deli, among others.
• While PepsiCo owns its own manufacturing and distribution
facilities in certain parts of these regions, more of this
production is conducted via alternate means such as licensing
(which it does with Aquafina), contract manufacturing, joint
ventures and affiliate operations. PepsiCo's businesses in these
regions, as of 2009, contributed 13 percent to the company's net
revenueworldwide. In August 2012, PepsiCo signed an
agreement with a local Myanmar distributor to sell its softdrinks
after a 15-year break to re-enter the country.
8. Advertising
Brand Image of Pepsi
Pepsi is a brand that every youngster relates to.
But this definitely doesn’t mean that other age groups are not it’s user’s.
Thus Pepsi’s brand image is it’s hip, cool, lively and refreshing attitude.
9. Advertising Strategy of Pepsi
Pepsi’s target audience are mostly teens and young adults and their
advertising reflects this in every possible way.
The company changes its advertising strategy and image to reflect the
target's interests.
Pepsi makes sure that the advertisements reflect to the target audience’s
interests and nostalgia.
The advertising strategy includes cool, hip promos to attract more of the
target audience.
The advertising is mostly creative and has different elements like music and
sports other than bollywood.
Pepsi.com also plays an important role in advertising and attracts target
audience by giving access to options like downloads, gaming, music mixing
applications etc..
10. Generation Y- Market Influence
Huge market – 80 million people
Spending power – 600 million annually
Many Geb Yers do household grocery shopping
90% parents say kids influence what they buy
Many work and have their own money to spend
They have proven to be brand loyal
11. How to reach Generation Y
Creates promotion tailored to their needs and interests.
Gen Yers like entertainment and music
They like to laugh, but not at another's expense
To attract the teen market radio and television should be used
They are internet savvy What does Generation Y like?
Free stuffs and discounts
Contests/drawings
Music
Club cards
Team sporting events
They are into clothes and the latest
styles
Teen friendly retail stores and
internet site
12. Michael Jackson
Michael received the biggest
sponsorship from the company
in 1993.
In 1993 Pepsi had a “Search for
Michael Jackson” campaign.
Used musical and sex appeal.
Advertising campaigns
Jeff Gordon
Made a commercial with Hallie
Eisenberg
Sells many Pepsi collectable
merchandise.
Drove the Pepsi car in races
13. Hallie Eisenberg
First appeared in a Pepsi commercial in
1998 at age 5
Introduced the “Joy of Cola” campaign.
Starred in commercials with Faith Hill,
KISS, and Ken Griffey Jr.
Her commercials used humor.
Spice Girls
Promotional single “Move over” available only
through Pepsi.
Used musical and sex appeal.
As international stars they affected many
countries
