2. INCEPTION
In 1886,New Bern, North Carolina based
pharmacist & industrialist Caleb Bradman
formulated digestive drink.
He decided to call it Bard’s drink.
The potion became Pepsi-Cola in 1898.
It became Pepsi in 1903.
3. ABOUT THE BRAND
Flagship brand of PepsiCo.
Hundred years old brand & loved by 200 million people.
Since its inception Pepsi has always has been at the
forefront of the beverage industry.
It has come up with revolutionary concepts.
An iconic youth brand in INDIA
The single largest selling soft drink brand in INDIA.
7. The Porter’s Five Forces tool is a
simple yet powerful tool.
It helps you to understand
-where power lies in a business
situation.
-Strength of the current
competitive position of the
business.
-strength of the position in
which the business is considering
to move into.
8. The intensity of competitive rivalry is the
major determinant of the competitiveness of
the industry.
12. Currently the main competitor is Coca Cola.
Coca Cola also have a wide range of beverage
products under its brand.
PEPSI COCA COLA
AQUAFINA,
MOUNTAIN DEW,
GATORADE,
SLICE,
7UP,
NIMBOOZ,
TROPICANA
TWISTER,
MIRINDA
KINLEY,
LIMCA,
THUMSUP,
SPRITE,
MAAZA,
COKE
13. Coca Cola have more classical approach of
advertising
Pepsi try to attract younger generation
In a blind taste test people couldn’t tell
difference between Pepsi and Coca Cola
14. Both Coca Cola and Pepsi are pre dominant
carbonated beverages
Both Coca Cola and Pepsi commit heavily to
sponsoring outdoor festivals and activities
15. Profitable markets that yield high returns will
attract new firms
This result in many new entrance
Which eventually may decrease profitability
for all firms in the industry
Example Dr Pepper
(RC Cola)
entering the
market
16. Entry barrier are relatively low for beverage
industry
There is almost zero consumer switching cost
and very low capital requirement
There are more and more new brands
appearing in the market with usually
lower price than pepsi
Ease of access to distribution channel
17. Buyers propensity to substitute
Relative price performance of substitute
No of substitute products available in the
market
Perceived level of product differentiation
18. There are many kinds of energy drink and
soda products in the market
Pepsi doesn’t really have a special flavor
Example-Kinley soda,
Sweet lime soda.
Energy drink,
Juice
Beer
water
19.
20. Bargaining power of consumers is also
described as the market of output
Degree of dependency upon existing
channels of distribution
Buyer switching cost relative to firm switching
cost
Buyer price sensitivity
21. Individual buyer doesn’t influence Pepsi
Hot climate encourages buying
The main competitor Coca Cola is priced
same as Pepsi
PACKAGING PEPSI COCACOLA PRICE
200ML GLASS BOTTLE GLASS BOTTLE 10
300ML GLASS BOTTLE GLASS BOTTLE 12
600ML PET BOTTLE PET BOTTLE 28
22. Packaging changes during FIFA world cup,
ICC world cup ,Euro cup and all other main
sports event
27. The bargaining power of suppliers is also
described as the market of inputs
Suppliers of raw materials, components,
labors and services to the firm can be a
source of power over the firm.
Supplier may refuse to work with the firm
28. The main ingredients for soft drink include
carbonated water , phosphoric acid,
sweetener, caffeine.
The suppliers are not concentrated or
differentiated
Any supplier wouldn’t want to loose a huge
customer like Pepsi
Bargaining power of supplier is low.
29.
30. Michael Porter’s Five Force Model helps us in
understanding the present situation of Pepsi in the
beverage market. All of the forces are strong
enough to make us understand the market position
of Pepsi better. Though having many substitutes,
competitors and new entrants like RC cola , Pepsi
has doubled its market share in 2011.Pepsi as a
brand has been highly successful in food and
beverage industry..