Product Assortment- Case Study Pepsi

1. PRODUCT ASSORTMENT
PEPSICO. LTD
Submitted By;
Koyel Chakraborty 12
Rakshit Patel 23
Ravi Sharma 24
Tathagat Mahajan 31

2. INTRODUCTION
 PepsiCo incorporated in 1965 with the merger of
the Pepsi-Cola Company and Frito-Lay, Inc.
 PepsiCo, is a Fortune 500, American global
corporation headquartered in Harrison, New
York, with interests in the manufacturing,
marketing and distribution of grain-based snack
foods, beverages, and other products.
 19 of PepsiCo's product lines generated retail
sales of more than $1 billion each, and the
company’s products were distributed across more
than 200 countries, resulting in annual net
revenues of $43.3 billion. Based on net revenue,
PepsiCo is the second largest food & beverage
business in the world.

3. PRODUCT ASSORTMENT
WIDTH----------
Water
drinks
CSD Energy
drinks
Soft
drinks
Sports
drinks
Juice
drinks
Snacks
Aquafina Mug Bear AMP
Energy
Pepsi Gatorade Dole juice Lays
Ethos
water
Tava No Fear 7 up Thirst
quencher
Ocean
spray
Kurkure
Profel Sobe
essential
energy
Mirinda G2 Tropicana
juice
Cheetos
Fitness
Water
Mountain
dew
Slice Doritos
Sobe Life
Water
Diet Pepsi Munchies
Pepsi Blue
Crystal
Pepsi

4. PRODUCT CUSTOMERS INFLUENCER
CARBONATED
DRINKS
YOUTH’S CELEBRITES,
PACKAGING, BRAND
LOYALTY , ADS
SNACKS CHILDRENS &
YOUTHS
FLAVOURS, TASTE &
RECREATIONAL
TIMES
JUICE DRINK ALL AVAILABILITY,
BRAND LOYALTY
,TASTE
PACKED WATER EXECUTIVES,MEDIU
M &HIGH CLASS &
TRAVELLERS
HEALTH ISSUES,
BRAND
ENERGY DRINKS SPORTSMEN ICONS, NUTRITION ,
ENERGY
&COMPETITORS
CUSTOMER & IT’S INFLUENCER OF PEPSICO

5. FIVE PRODUCT LEVELS
•Each additional layer adds cost
•Augmented benefits could become Expected benefits
•Augmentation could lead basic benefit segments vacant
•Applicable to most, if not all, products

6. Core benefit - Thirst & refreshment
Analyzing the Five Product Levels – PEPSI
Basic Product – carbonated drink
& taste
Expected product – hygien, safe consumption,
nutritious & quality
Augmented product – easy to open & more
variety(flavors)
Potential product – gifts, price discount & offers

7. PRODUCT LINE LENGTH
MANAGEMENT
1. Line stretching
 Upward-Pepsi, Frito Lay, Pepsi max, Pepsi Lite
 Downward- Chesters, Twister
 Two Way- King Vitamin & Spuds(north
&South)
2. Line filling (each item should produce a just
noticeable difference)
 7up, Mirinda, Tropicana, Slice, Mountain dew,
Quake

8. 3.Line modernization
My can, Tin(beverage), Naked juice, Meat
sticks (Frito lay)
4.Line Pruning
All Sport, Crystal Pepsi, Pepsi blue, Pepsi edge,
storm, KFC, Pizza hut, Mr. green, Matika

9. OPTIONS FOR GROWTH
 Increase Market Share
 Introduce New Products
 Move into New Markets
 Diversify into non-beverage markets.

10. OPTIONS FOR GROWTH
MarketGrowth
Market Share
Increase Market Share

11. OPTIONS FOR GROWTH
New Products
Old Products
Old Markets New Markets
Introduce New Products
Move into New Markets
Diversify

12. ADVERTISEMENTS

13. DIVERSIFICATION
• Pepsi has no other option than to diversify into non-beverage
markets.
• Diversify into products that complement Pepsi’s beverage
offerings.
• Diversification will create secondary business units that can
help Pepsi to increase revenues.
• Opportunities to enter markets not dominated by a few big
companies.

14. ICE CREAM
DAIRY PRODUCTS
COFFEE & TEA ETHNIC FOOD
CONDIMENTS GOURMET

15. CONFECTIONARIES
HOTEL / RESTAURANTS

16. OTHERS….
• Frozen food
• Nutraceuticals
• Ready to eat
• Spices & seasonings
• Snacks foods
• Low crab

17. BRAND
ISSUES

18. PESTICIDE RESIDUES ISSUE
5 August report of the Centre for Science and
Environment, New Delhi. A CSE test found 12
soft-drink brands of Coke and its global rival
Pepsi contained pesticides and insecticides in
excess of the European Economic Commission’s
limit. The Parliament’s immediate reaction: ban
on the brands on its premises.

19. POLLUTION
On 6 August, Kerala State Pollution control Board had
confirmed that pepsi’s bottling plant had indeed been
polluting the groundwater and agricultural land in
and around its Palakkad plant.

20. DEPLETION OF GROUNDWATER LEVEL
Pepsi removing 1.5 million of water daily, for its products
like soft drinks, mineral water , etc. through its deep
wells.This creats problem of depletion of ground water
level in Kerala, Maharashtra, West Bengal.

21. CONTRACT FARMING ISSUE IN
KARNATAKA
In contract farming in karnataka region Pepsico provided
seeds to farmer,then after the attack of late blight the
quality of potato get reduced so pepsico didn’t purchased
such potato this leads some imbalances between farmer
and company.

22. THANK YOU
CHEER’S