case study of pepsico

1. Pepsico case study
By zenith –
Palash Goyal
Juhi Pawar
Hina Agarwal
Sangmitra s Parihar
Karishma Kakkad

2. Pepsico’s Entry in India
why
HUGE
POPULATION
URBANIZATION
Untapped
customer
Climate
Consumptio
n 3 bottle
per capita
reached to
saturation
level in US.

3. CHALLENGES
Foreign brand name could not be used
joint venture
 Government intervention
Forced to close Coco-cola

4.  Political environment
 Intent of development of local players only
 promotion of carbonated drinks was opposed
 Fear of invasion of foreign brand
 Legal environment
Severe restrictions in equity through FERA
Dispute in relation to ownership of Pepsi brand name
ISSUES TO BE CONSIDERED
BY PEPSICO WHILE ENTRY IN
INDIA

5.  Economic environment
Closed economy.
Cold drink industry had just come into existence .
 Socio cultural environment
Fear of impact on Health/diet.
Cont..

6. 1st proposal (rejected by govt.)
•In May 1985, PepsiCo had joined hands with one of India's leading business
houses, the R P Goenka (RPG) group, to begin operations in the country.
•planned to import the cola concentrate and sell soft drinks under the Pepsi label.
•PepsiCo's entry into India revolved around 'promoting and developing the
export of Indian agro-based products.

7.  The government did not accept the clause regarding
the import of the cola concentrate.
 The use of a foreign brand name (Pepsi) was not
allowed as per the regulatory framework.
Reasons for Rejection

8. 2nd Proposal
 Proposal:
 'Green Revolution' in Punjab which would end stagnation in Punjab's
rural sector and would help in promoting small and middle farmers.
 Argument:
 This project will create ample employment opportunities for the
unemployed youth who has taken the path of terrorism and thereby
will help in restoration of peace in Punjab.
 Outcome:
 Argument very well received in the political circles in Delhi and Punjab
which finally led to PepsiCo's entry into India in the form of a joint
venture with PAIC and Voltas as its partners.

9. Strategy
BRAND NAME
“LEHAR PEPSI”
JOB OPPORTUNITIES
ADVANCE TECHNOLOGY
TWO EXTRA P’S
•PUBLIC OPINION
•POLITICS

10. I learned that you are coming here.
I am the one that threw Coca-Cola out, and we
are soon going to come back into the
government.
If you come into the country, you have to
remember that the same fate awaits for you as
Coca-Cola.