Pepsi: Analysis of Pepsi Household Programme

ANALYSIS OF PEPSI HOUSEHOLD PROGRAMME
PEPSI

Assignment Submitted towards te Partia! Fu!"i!!ment o" te re#uirement o" te two$
%ear "u!! time Master O" &usiness Administration 'M&A()
Submitted b%*

+ISHA& +EER SINGH RANA
'M&A(

,--.$,--/

RAI &USINESS S0HOOL
A$123 M0IE3 MA4HURA ROAD3
NE5DELHI$ 22--11
4EL'-22( ,6//27--3 8286----
E$MAIL* de!i9rai"oundation)org
+isab :eer sing rana

5E&SI4E* www) rai"oundation)org

4A&LE OF 0ON4EN4S
IN4RODU04ION
PEPSI PROFILE
2) &IR4H PLA0E OF PEPSI
,) INDUS4RY S4RU04URE
7) PUR0HASE AND 0ONSUMP4ION PA44ERN
0OMMON 4ERMS USED IN PEPSI$0OLA
SYS4EM
4HE HIERAR0HY OF MAR;E4ING
DEPAR4MEN4
<AIPURIA = PEPSI
0ORPORA4E 0I4I>ENSHIP
PEPSI 2- S4EP 0ALL
PUN0HLINES
PUN0HLINES
S5O4 ANALYSIS

S) 4) P) ANALYSIS
MAR;E4ING MI?
&I&LIOGRAPHY
IN4RODU04ION
Pepsico is a world leader in convenient foods and beverages, with revenues of about $27
billion and over 143,000 employees !he company consists of the snac"s business of #rito$
lay %orth &merica and the beverage and food business of Pepsico 'everages and foods,
which includes Pepsi (o 'everages %orth &merica )Pepsi$(ola %orth &merica and
*atorade+!ropicana %orth &merica, and -ua"er #oods %orth &merica Pepsi co success is
the result of superior products, high standards of performance, distinctive competitive
strategies and high integrity of our people Pepsi (o .s beverages business was founded at the
turn of the country by (aleb 'radham, a new 'ern, %orth (arolina druggist, who first
formulated Pepsi$(ola !oday consumers spend about $33 billion on Pepsi$(ola beverages
'rand Pepsi and other Pepsi$(ola products$$$$including /iet Pepsi, Pepsi$0ne, 1ountain
/ew, 2lice, 2ierra 1ist and 1ug brands$account for nearly one$third of total soft drin"s in
the 3nited 2tates, a consumer mar"et totaling about $ 40 billion
!he main purpose of the strengthening of new mirinda lemon is to compete with its
competitor, (oca$ cola product 5imca and increase its mar"et share

!his pro6ect deals with the strengthening of new mirinda lemon of 7&83% 'everages in
%09/&

PEPSI PROFILE
&IR4H PLA0E OF PEPSI
%:; ':8%, %08!< (&8059%& (0&2!$$$$$ on the spot in his pharmacy, (aleb bard
ham invented =brad.s drin" which later he planted as Pepsi$cola
2/68
/onald 1 >endall President and (hief :?ecutive 0fficer op Pepsi$(ola and <erman
;5ay, (hairman and (hief :?ecutive 0fficer of #rito$5ay found 1@4A Pepsi co, 9nc,
through the merger of two companies (aleb 'radham, a %ew 'ern, %( pharmacist, created
Pepsi B(ola in the late 1C@0 #rito$ lay, 9nc was formed by the 1@41 merger of the #rito
(ompany, founded by :lmer /oolin in 1@32, and the <; 5ay (ompany, founded by the
new companyD /onald 1 >endall is president and chief e?ecutive officer !he new
company reports sales of $A10 million and has 1@,000 employees
1a6or products of the new companies areE
Pepsi$(ola (ompany $$$ Pepsi B(ola )formulated in 1C@C,, /iet Pepsi )1@44, and 1ountain
/ew )introduced by the (orporation in 1@4C,

#rito$5ay, 9ncFb #ritos brand corn chips )crested by :lmer /oolin in 1@32, 5ay.s brand
Potato chips )created by <erman ; 5ay in 1@3C,, (heetos brand cheese flavored snac"s
)1@4C,, 8uffles brand potato chips )1@AC, and 8old *old brand pretGels )acHuired 1@41,
1ountain /ew launches its first campaiIJahoo 1ountain /ew$$$$ it.ll tic"le your innardsI
2/6/
'old, modern Pepsi$(ola pac"ing using red, white and blue is introduced =Jou.ve got a lot
to live, Pepsi.s got a lot to give,I becomes the advertising theme
1ountain /ew changes its slogan to = *et that 'arefoot #eelin./rin"in.1ountain /ewI
2/.-
103%!&9% /ew changes its slogan to = *et that 'arefoot feel in Kdrin" in. 1ountain
/ewI
Pepsi(o moves from %ew Jor" (ity to new world headHuarters in Purchase, % J !he new
corporate headHuarters feature a building by one &merica.s foremost architects, :dward
/388:55 stone )1@02$1@7C, set on a campus of 144 acres amid an outdoor sculpture
garden
Pepsi introduces the industry.s first two$litter bottle
Pepsi is the first company to respond to consumer preference with lightweight, recyclable,
plastic bottles
2/.,

1ountain /ew, acHuired by Pepsi$ (ola in 1@44, switches its advertising and pac"ing
graphics from to action Boriented scenes 2ales climb and 1ountain /ew will become one of
the 10 best B selling soft drin"s in the 3nited 2tates
/on >endall announces agreement Pepsi$(ola the first foreign product sold in the then
3228 Pepsi(o is given e?clusive rights to import 2tolichnaya 8ussian vod"a in the 32
2/.1
Pepsi(o sales pass the $2 billion mar" Pepsi$ (ola becomes the first &merican consumer
product to be produced, mar"eted and sold in the firmer 2oviet 3nion
2/@-
Pepsi(o #ood 2ervice 9nternational )P#29, is formed to focus on overseas development of
restaurants Pepsi(o now has 111,000 employees first presentation of the international
/onald 1 >endall 'ottler$of Bthe$year &ward
2/@2
Pepsi(o passes $7 billion in sales
2/@,
Pepsi #ree and /iet Pepsi #ree, the first ma6or brand caffeine$free colas, are introduced
9nauguration of the first Pepsi$(ola operation in (hina
2/@8

Pepsi(o is now the largest company in the beverages industry !he has revenues of more
than $7A billion, more than 137,000 employees Pepsi$(ola products are available in nearly
1A0 countries and territories around the world 2nac" food operations are in 10 international
mar"ets
2/@6
Pepsi(o purchases 7$3P 9nternational, the third largest franchise soft drin" operation outside
the 3nited 2tates
Pepsi(o passes $10 billion in sales
/ew it (ountry (ool,Ibecomes new slogan for 1ountain /ewI
/iet Pepsi B(ola acHuires 1ug 8oot 'eer
Pepsi gets a new logo Pepsi B(ola sponsors the first ;estern$ produced consumer
commercial in the 2oviet 3nion, appearing during the *oodwill *ames
2/@@
Pepsi B(ola international enters a landmar" 6oint venture agreement in 9ndia
2/@/
Pepsi(o enters top 2A of fortune A00 ran"ing with sales of $1A4 billion, it is number 23
!he company has more than 300,000 employees
2//2
Pepsi(o acHuires an eHuity interest in ;edel 2&, the leading manufacturer of chocolate and
confectionary in Poland 2nac"s operation in 23 countries

Pepsi$(ola introduces a new logo, its eighth in @3 years &dvertising features rap singer 1(
<ammer
2//1
Pepsi$(ola is the first ma6or soft drin" ma"er to begin producing and distributing its product
in 7ietnam
Pepsi$(ola launches its sports drin" &ll 2ort 9t is sold in 2001
Pepsi B(ola 9nternational acHuires 9ndian company, its first big bottling plant in 'ombay
Pepsi B(o sales reach $ 304 billion !here are 470,000 employees worldwide, ma"ing
Pepsi(o the third largest employer
2//8
Pepsi B(ola introduces = %othing else is a PepsiI theme line
Pepsi B(ola is top ad scorer in 2uper 'owl
1ountain /ew sponsors the *rammy &wards !heme line is = 'een !here, /one !hat, !ried
!hatI
!he Pepsi 5ipton !ea Partnership debuts new ad campaign emphasiGing, =!here.s only one
0riginalI
Pepsi B(ola introduces 2mooth 1oos 2moothies, a line of low Bfat dairy sha"es
73P 9nternational launches 73P9ce(ola, a new clear cola
2//6
1ountain /ew launches a massive beeper networ" called =!he 1ountain /ew :?treme
%etwor"I

Pepsi (o, 9nc and 5ucas film 5td announce the largest promotional alliance in entertainment
history, lin"ing e?isting and future 2tar ;ars series with Pepsi(o beverages, snac" foods and
restaurant brands worldwide
Pepsi (ola and 1!7 establish a partnership to develop international programming, cross
promotions, mar"eting tie$ins and specials events
2//.
Pepsi B(ola introduces new advertising campaign with the theme =*eneration %e?tI
Pepsi B(ola %orth &merican bottling operations become a separate unit called !he Pepsi$
(ola 'ottling (o
%ational rollout of &Huafina bottled water
Pepsi B(ola celebrates 100
th
&nniversary with first worldwide bottlers. conference, held in
<awaii !he event is held during the same time as first bottler.s conference
2//@
Pepsi B(ola introduce two Bliter plastic bottle with built in =grip handleI that ma"es it easier
to grip and pourI
Pepsi introduce new loo" called the =*lobeI which prominently features a 3$dimensiponal
*lobe against a blue ice bac"drop
Pepsi(o acHuires !ropicana Products from 2eagram (ompany 5td, the biggest acHuisition
ever underta"en by Pepsi(o &nthony 8ossi founded !ropicana in 1@47 its ma6or brand is
!ropicana Pure Premium Luices

9n 1arch, the Pepsi 'ottling *roup, the world.s largest Pepsi bottler, begins trading on the
%ew Jor" 2toc" :?change 9t is listed under the symbol P'* !he $ 32 billon public
offering is among the biggest initial public offerings in stoc" mar"et history
2///
Pepsi launches =!he Loy of (olasI advertising campaign
,---
Pepsi$(ola revivers it.s =Pepsi (hallengeI advertising campaign (hallenge includes Pepsi
0ne /iet (o"e as well as cola
Pepsi$(ola teams up with Jahoo 9nc the biggest web navigation company, in a multimedia
mar"eting campaign aimed at teens and young adults
Pepsi$(ola launchesI 2ierra 1istI a caffeine$free, lemon+lime soda
,--2
Pepsi$(ola (ompany launches /ole single Bserver 6uices in vending machines, coolers and
other retail outlets throughout the 3nited 2tates
Pepsi$(ola.s flagship brand will have %:; !&*59%:,I !he Loy 0f PepsiI
Pepsi$(ola launches the bold new 1ountain /ew code 8ed nationwide 9t is 1ountain
/ew.s first line e?tension since the introduction of the /iet 1ountain /ew in 1@CC
Pepsi(o introduces a new corporate logo
/iet 2ierra 1ist is introduced
,--,
/iet Pepsi has a new loo"

&Huafina debuts new line of great$tasting enhanced water &Huafina :ssentials target active,
health$conscious adults in four lightly sweetened varieties including '$Power, (alciumM,
/aily ( and 1ulti$7in 20$oG bottles
Pepsi 'rand Pepsi has a new loo"
Pepsi(o publishes <ealth and ;ellness Philosophy )on pepsicocom,
Pepsi(o introduces 1arathon >ids, a program that encourages "ids and their families to be
more physically active, the program debuts in /allas, !N
,--7
Pepsi$(ola launches 2ierra 1ist nationally
Pepsi announces plans to launch 1t /ew 5ivewire, an orange drin", this summer
Pepsi$(ola sings an e?clusive four$year sponsorship deal with the (anadian <oc"ey
&ssociation, ma"ing Pepsi the official soft drin"
Pepsi announces four$year sponsorship agreement with the 3> #ootball &ssociation
=Pepsi 2tuffI (ampaign "ic"s$off in (anada
Pepsi(o creates Pepsi(o 9nternational, the business that will unite all international snac",
beverages and food units in an effort to drive faster growth and improved profitability around
the world
,--1
Pepsi$(ola to launch Pepsi :dge, the first full$flavored cola with A0O less sugar,
carbohydrates and calories than regular cola
,--8
Pepsi(o relanuched 1irind 5emon )ginger flavored,

!he story still not end$$$$$$$$$$$$$$$$$$$$$$$$$$$

PEPSI PROFILE
INDUS4RY S4RU04URE *
!he three main teams in the in the production and the distribution of the carbonated soft
drin"s are the concentrate producers, the bottlers and the retailers who are actually
responsible for the sales of the product !he concentrate producers produce the concentrate
and them sell it to the bottlers, who adds a sweetener to the carbonated water and then pac" it
in the bottles and cans !hese bottlers can be either the Pepsi itself or the franchisees who
wor" on behalf of Pepsi 0ne half of the sale of the Pepsi is through the company owned
bottlers )(0'0, and other half of the sale is through the franchisees bottlers )#0'0,
#0'0.s had the right to the product and then sells it in the defined territory and is not

allowed to mar"et the competitive brand !hen through the distribution channel the product
reaches to the retailer who finally sells the product to the consumers
!he principle retail outlets for the (2/ are the supermar"ets, convenience stores, fountain
services and thousands of small outlets

PUR0HASE AND 0ONSUMP4ION PA44ERN
9ndustry research suggests that the purchase of the soft drin" is unplanned, ie sometimes it
is more and sometimes it is less depending on the demand in the mar"et, the schemes that are
provided to the retailers, the displays provided, the incentives given and on the relationship
of the salesman and the retailers
!he sale of soft drin"s is a seasonal affair !he sale increase tremendously during the summer
season and falls down during the winter season

0OMMON 4ERMS USED IN PEPSI$0OLA SYS4EM
8*' )refilled glass bottles,E !his term is generally used for the 300 and 200 ml glass bottles
'ottleE !his term refers to the entire bottling group
(anE & still of aluminum container in which the beverages are pac"aged for sale
(rateE & durable bo? made of durable plastic )thermostatic plastic, which is used to contain
the bottles
(onsumerE 2omeone who consumes the products

(oolerE 1echanically refrigerated unit that cools the glass bottles and the pet bottles
(rownE !he steel closure, which seals the bottles
(ustomerE & retailer or dealer who sell or serves products directly to the consumer
8outeE !he seHuence of shops and the retail shops that the salesman has to cover every day in
order to complete his 6ob
;hole 2ellerE & business entity, which buys products from the producers for resale to the
retailers !hey have their own defined routes, the salesman from the company are not
allowed to cover them
4HE HIERA0HY OF MAREE4ING DEPA4MEN4
0HAIRMAN
UNI4 MANAGER
4DM
4erritor% de:e!oAment
manager
MDM
MarBeting de:e!oAment
manager
AD0
ACCount de:e!oAment
Coordinator
0E
0ustomer
eDeCuti:e
MD0
MarBeting
de:e!oAment
Coordinator

<AIPURIA = PEPSI
!he Laipuria *roup, since 1@7A has been a renowned and reputed name in the field of soft
drin" bottling 2ince its foray into this field the *roup has bottled almost all the ma6or soft
drin" brands that e?isted in 9ndia li"e (oca (ola, !humps up, 5imca and Pepsi etc
!oday the Laipuria *roup commands almost 40O of the Pepsi 'usiness in 9ndia, with an
impressive turnover and plants eHuipped with the latest technology !he Laipuria *roup can
boast of being the biggest name in the country, when it comes to the soft drin"
manufacturing
MDE
MarBeting
de:e!oAment
eDeCuti:e
SALESMAN ROU4E AGEN4

!he country !he *roup has a ma6or presence in most part of the country, with its 22 fully
operational plants running successfully across

SHAREHOLDERS
Pepsi(o )symbolE P:P, shares are traded principally on the %ew Jor" 2toc" :?change in the
3nited 2tates !he company is also listed on the &msterdam, (hicago, 2wiss and !o"yo
stoc" e?changes Pepsi(o has consistently paid cash dividends since the corporation was
founded
0ORPORA4E 0I4I>ENSHIP
Pepsi(o believes that as a corporate citiGen, it has a responsibility to contribute to the Huality
of life in our communities !his philosophy is put into action through support of social

agencies, pro6ects and programs !he scope of this support is e?tensive B ranging from
sponsorship of local programs and support of employee volunteer activities, to contributions
of time, talent and funds to programs of national impact :ach division is responsible for its
own program

PEPSI 2- S4EP 0ALL*
*reet the customer by name
(ollect and sort all empties from the storeroom
(ommunicate mar"eting programme and scheme to the customer
5everage the route boo" and refill the empties
&rrange warm product displays )in the shop,
(harge cooler, ensure 100O purity
&rrange crate display outside the outlet

Put up P02 at eye level
Prepare cash memo, collect cash and fill up the route boo"
!han"s the customer

PUN0HLINES
=J:< /95 1&&%*: 108:I
=L08 >& L<&!>& /<98: 2: 5&*:I$$$1989%/& 08&%*:
=*00/ #00/ !&2!:2 ':!!:8 ;9!< P:P29I$$$P:P29
=(<::!&< '<9 P9!& <&9I$$$103%!&9% /:;
= 5:10% >9 !&&P*9, &/8&> 1&&8 >:I$$$1989%/& 5:10%
=!:89 !0 *&&J:I$$$P:P29 ;085/ (3P

= <&11:2 195%: >9 PJ&22 <&9I$$$$P:P29 (0%!:2!
=%0!<9%* 0##9(&5 &'03! 9!I$$$$P:P29
= J:< PJ&22 <&9 '&/9I$$$$P:P29
=0J: '3'5JF0J: '3'5JI$$$$P:P29
= &%/&&P 2&'2: (005I$$$$$73P

S5O4 ANALYSIS *
2) S4RENG4H
135!J %&!90%&5 (01P&%J
2!80%* 1&8>:!9%* 2!8&!:*J

2 9% 1 ':%:#9!
,) 5EA;NESS
%0%$&7&95&'95!J 0# P80/3(!2
250; &#!:8 2&5: 2:879(:2
P008 /92!89'3!90% 0# !<: 2(<:1:2
P80192:2 &8: %0! #35#95:/
7)OPPOR4UNI4Y
*00/ '8&%/ &;&8:%:22 9% 9%/9&

9! (&% &!!8&(! !<: 108: (0%231:8:2 ':(&32: !<92 92 !<: 0%5J
0%: (05/ /89%> 9% !<: 1&8>:!, ;<9(< <&2 !;0 #5&7082 9% 0%:
'0!!5:
2311:8 2:&20% 92 9!2:5# & *8:&! 0PP08!3%9!J #08 %:; 1989%/&
5:10% !0 9%<&%(: !<: 1&8>:!
1)4HREA4S
2!80%* (01P:!9!08
:N92!9%* #5&7082
S) 4) P) ANALYSIS

SEGMEN4A4ION*
!he company segments its product according to geographical means (old drin" was
segmentation in /elhi )%(8, Pepsi aims at e?pending their how in all parts in 9ndia
4ARGE4*
'asic aim of the company is to launch the flavored cold drin" and attract all generation in
urban as well as rural areas
(hild and teenager generation will be lured to the product on the basis of flavor and
features
POSI4IONING E
!he mission of the Pepsi is towards reaching to the last consumer and leaving name in thier
minds

!he company emphasis on few areasE
1, :asy availability and reliability with Gero resistance for the product to reach the
customer
2, Price is the consideration with offer and easy finance scheme
3, !rading of proper mar"eting e?cellence for increasing the company sale

MAR;E4ING MI?

PRODU04S
Pepsi ma"es (&8'0%&!:/ 20#! /89%>2 i ecola and non$cola flavor
(08: '8&%/2E
P:P29
%:; 1989%/& 5:10%
1989%/& 08&%*:
259(:
103%!&9% /:;
73P
&-3&#9%&
20/&
PA0;AGES
!wo typesE single serve and multi serve
47 pac"ages siGes and types
1aterialsE glass, plastics, cans, syrup
Pac"ages may be returnable or non$returnable

PRI0ING
NE5 MIRINDA LEMON
200 ml 8s C
300 ml 8s10
A00 ml 8s 20
2 l 8s A0
PROMO4ION
Promotion are basically those activities, which are board in aim and scope which may be in
form of priGe, price coupons, premiums, contests or discounts promotions usually offer the
consumer a special reason for buying 7arun 'everage %oida does its sales promotion
through various types of schemes such as daily, monthly, annual schemes, merchandising of
materials, and add promotion
&I&LIOGRAPHY
&ooBs Re"erred
2( MarBeting researC Nares ;) Ma!otra

,( MarBeting Pi!iA ;ot!er
7( MarBeting management RaEan SaDena
1( StatiCs "or management Lennin = Rubin
8( Fuantitati:e metods &)M) Aggarwa!
Internet 5ebsites
www)Abg)Com
www)AeAsiwor!d)Com
www)AeAsiCo)Com
www)rBE)Com
www)EaiAuri%a)Com
www)AeAsiameriCa)Com
www)goo!e)Com
www)CoBe)Com

Pepsi: Analysis of Pepsi Household Programme

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Pepsi: Analysis of Pepsi Household Programme

Uploaded by

Copyright:

Available Formats

ANALYSIS OF PEPSI HOUSEHOLD PROGRAMME

You might also like