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.
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.
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.
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.