Pepsico India Presentation by Pranjal Jha in IIT Bombay (Marketing & HR) 2011

1. Target Market & Segmentation
Assignment
EPM IITB – VIII-Mumbai- Group4

2. Assignment1- Define the market and segment for following compnies
PepsiCo is a world leader in convenient snacks, foods and
beverages.
Solid Philosophy, Solid Company
Creating a Better Tomorrow for Future Generations
Our Mission and Vision
At PepsiCo, we believe being a responsible corporate citizen is not
only the right thing to do, but the right thing to do for our business.
PepsiCo Values & Philosophy
Our Values & Philosophy are a reflection of the socially and
environmentally responsible company we aspire to be. They are the
foundation for every business decision we make.
Reference – pepsico.com

3. CONTENTS
 Introduction
 Current position
 PepsiCo Brands
 Segmentation, Targeting &
Positioning
 Consumer Understanding
 Market segmentation Chart
 Marketing mix & 4p’s
 SWOT analysis
 Problems
 Alternate solutions

4. INTRODUCTION
Pepsi is a carbonated soft drink
produced and manufactured by
PepsiCo. The drink was first made
in the 1890s by pharmacist Caleb
Bradham in New Bern, North
Carolina. The brand was
trademarked on June 16, 1903.
There have been many Pepsi
variants produced over the years
since 1898.
In 1903, Bradham moved the
bottling of Pepsi-Cola from his
drugstore to a rented warehouse.
That year, Bradham sold 7,968
gallons of syrup. The next year,
Pepsi was sold in & Wikipedia
Reference :Google.com six-ounce
bottles, and sales increased to
19,848 gallons. In 1926, Pepsi
received its first logo redesign
since the original design of 1905.

5. Current Position
PepsiCo is the second largest food and beverage company in the world. It
manufactures markets and sells a variety of salty, sweet and grain-based snacks,
carbonated and non-carbonated beverages PepsiCo seeks to achieve growth and
long-term value in its operational activities by creating competitive advantages
through new product innovation
In 2006, PepsiCo acquired Izze Beverage Company Naked Juice and Stacys Pita Chip
Company in the US, Star Foods in Poland, and Bluebird Foods in New Zealand. It has
expanded its presence in the non carbonated drinks as well as snacks
The company’s volume grew by 5.5% in 2006 compared with 2005 In 2007, the
company plans to expand its market share through further acquisition and joint
ventures.
In 2009, company has its revenue upto 43.2 Billion US$ and its net income was 8.04
Billion US$.
Reference :Google.com & Wikipedia

6. Pepsi Soft Drinks

7. Pepsico Brands
Drinks
Aquafina
Water
Aerated Drink Pepsi, Mirinda, Mountain Dew, 7up
Fruit Based
Slice, Nimbooz, Tropicana
Group 4

8. SEGMENTATION,TARGETING &
POSITIONING

9. Consumer Understanding
• Behavior
o Every persons like to have a handy, easy to carry & store ‘cool drink’
which can quench thirst
o People who need a drink with their food
o Those who don’t take alcohol at social gathering.
o Those who drinks alcohol mixed with sweet, bubbly drink
• By Geography
o Mostly urban and fast urbanizing towns
• Point of consumption
o Railway or bus Station, airports, supermarkets, Cinema
o Home, Restaurants, canteens at collage or workplace
o Social gatherings – Celebrations, meetings
• Age
o High School Students to 40s something
Group 4

10. Market Segmentation Chart
Segmentation chart Data
Geographic
World region Asia
Country India
Cities All major cities and
rular area.
Density Urban
Climate Hot & Dry
Reference : http://www.scribd.com/doc/8659289/Market-Segmentation-Positioning-and-Target-
Market-of-Pepsi

11. Demographic
Age 14-40
Gender Male,Female
Family size 1-2,3-4,5+
Family Life Cycle Married,Unmarried
Income 10000
Occupation From middle class to
upper class
Education School,Colleges,Univ
ersities
Race Asian
Psychographic
Social class Middle class,Upper
class

12. Behavioral
Occasions Parties,Birthdays,Meetings,Sp
orts & regular occasions
Benefits Quality, Taste
User status First time user
Loyalty status Strong

13. THE MARKETING MIX-4 P’S WITH SPECIAL
REFERENCE TO PEPSI:

14. 4P’s IN DETAIL
 Product
 All the soft drinks & the
food products in the
industry
 Price
 The price of the products
with respect to the Indian
scenario
 Place
 The urban & rural markets
where the products have to
be marketed
 Promotion
 The effective use of ads for
boosting up the sales

15. SWOT Analysis of PepsiCo
Strengths
 Company Image
 Quality Conscious
 Good Relation with Franchise
 Market Share
 Large No. of diversity businesses
 Sponsorships

16. Weaknesses
 Decline in taste
 litical Franchises
 Short term Approach
 Weak Distribution
 Low Consumer Knowledge
 Financial Downfall

17. Net Revenue (Comparative)
Reference : CNBC.com ,Pepsico.com,Google.com & Wikipedia

18. Opportunities
 Increase Population
 Changing Social Trend
 Diversification
 Distribution of Snack Foods

19. Threats
 Imitators
 Government Regulation
 Non-Carbonated and other Competitor’s Substitutes

20. PROBLEMS
 Lack of efficiency in distribution network in some
product lines. For e.g. My can.
 Lack of emphasis on the brand value in
advertisements.
 Lack of efficiency in product market survey before the
launch of products. For e.g. Pepsi blue.
 The target market is youth and the taste is not in
relation with the taste of target market(Pepsi is too
sweet)

21. RECOMMENDATIONS
 Promotion of their products through Effecting Marketing and Advertising
strategies.
 Improving production efficiencies through optimal outsourcing of production and
integration.
 Produce a range of Healthy, i.e. Sugar free or diet Alternatives of different
products.
 The products should bear the brand name in the advertisements
 A better & an efficient survey network is to be established in order to penetrate
the market
Reference: CNBC.com