PepsiCo India

PepsiCo entered India in 1989 and has grown to become the country’s largest selling food and Beverage Company. One of the largest multinational investors in the country, PepsiCo has established a business which aims to serve the long term dynamic needs of consumers in India.

PepsiCo India provides direct and indirect employment to 150,000 people including suppliers and distributors.

PepsiCo nourishes consumers with a range of products from treats to healthy eats that deliver joy as well as nutrition and always, good taste. PepsiCo India’s expansive portfolio includes iconic refreshment beverages Pepsi, 7 UP, Mirinda and Mountain Dew, in addition to low calorie options such as Diet Pepsi, hydrating and nutritional beverages such as Aquafina drinking water, isotonic sports drinks - Gatorade, Tropicana 100% fruit juices, and juice based drinks – Tropicana Nectars, Tropicana Twister and Slice, non-carbonated beverage and a new innovation Nimbooz by 7Up. Local brands – Lehar Evervess Soda, Dukes Lemonade and Mangola add to the diverse range of brands.

PepsiCo’s foods company, Frito-Lay, is the leader in the branded salty snack market and all Frito Lay products are free of trans-fat and MSG. It manufactures Lay’s Potato Chips, Cheetos extruded snacks, Uncle Chipps and traditional snacks under the Kurkure and Lehar brands and the recently launched ‘Aliva’ savoury crackers. The company’s high fibre breakfast cereal, Quaker Oats, and low fat and roasted snack options enhance the healthful choices available to consumers. Frito Lay’s core products, Lay’s, Kurkure, Uncle Chipps and Cheetos are cooked in Rice Bran Oil to significantly reduce saturated fats and all of its products contain voluntary nutritional labeling on their packets.

The group has built an expansive beverage and foods business. To support its operations, PepsiCo has 36 bottling plants in India, of which 13 are company owned and 23 are franchisee owned. In addition to this, PepsiCo’s Frito Lay foods division has 3 state-of-the-art plants. PepsiCo’s business is based on its sustainability vision of making tomorrow better than today. PepsiCo’s commitment to living by this vision every day is visible in its contribution to the country, consumers and farmers.

Mission and Vision

PepsiCo India’s Mission

"To be the world's ‘premier consumer products’ company focussed on

convenience food and beverages. We seek to produce healthy financial

rewards to investors as we provide opportunities for growth and

enrichment to our employees, our business partners and the communities in

which we operate. And in everything we do, we strive for honesty, fairness

and integrity."

PepsiCo India’s Vision

"To build India’s leading total beverage company, delighting consumers by

best meeting their everyday beverage needs, and stakeholders, by

delivering performance with purpose, through our talented people."

Competitors Analysis

Major Competitors

CCI Communication Strategies

Localization in communication to target rural market

Establish connect between Coke and enjoying life.

Life ho toh Aisi !!

Coca Cola Enjoy

Try to impress upon consumer mind by targeting ego !

Yaaran da Tashan !

Advertising for all brand packs done in a balanced manner.

Intensive use of Celebrities for both on-air and off-air Campaigns.

Trying to position coke as a generic term for carbonated beverage.

Thanda matlab coca cola !!

Market Comm. Mediums of COKE

Promotional activities.

Celebrity endorsements and brand ambassadors.

Advertisements.

Hoardings

Opportunity Analysis

Water Shortage and Health Awareness Driving Bottled Water Consumption in India. The Indian packaged water business is estimated at around Rs 2,500 crore with a growth rate of close to 35 per cent. While India ranks in the top 10 largest bottled water consumers in the world, its per capita per annum consumption of bottled water is estimated to be five litres which is comparatively lower than the global average of 24 litres. Today it is one of India's fastest growing industrial sectors. Between 1999 and 2005, the Indian bottled water market grew at a compound annual growth rate (CAGR) of 25 per cent - the highest in the world. The study, conducted by the US-based Earth Policy Institute, says the global consumption of bottled water has grown by 57 per cent over the past five years.

Changing health consciousness attitude derives an opportunity for coca-cola to introduce more of non-carbonated beverages. The market share of non carbonated drinks is expanding at a fast pace and world leading beverage company can come up with health drinks to tap the new segment.

Rural Markets are still to be explored.

The Per Capita Consumption Of Cola Beverage Products.

INDIA CHINA RUSSIA MEXICO0

20

40

60

80

100

120

140

160

180

0.720000000000001 1.9 2.9

102.2

2.167.7

14.2

160

19982009

Figures are in Litres

The above chart shows per capita consumption of coca cola products in INDIA was 0.72 L in 1999 and 2.16 L in 2009. India has one of the lowest consumption and shows the potential to grow. The maximum coke consuming country is MEXICO where per capita consumption in 1999 was 102.2 L and 160L in 2009.

Segmentation Targeting & Promotion

Segmentation

The market has being segmented by pepsi on the following grounds. PepsiCo have adopted different marketing strategy for rural and urban areas.

Age

India is considered to be a young country i.e. average age of Indian population is less 38years. Thus targeting young generation can be abeneficial marketing strategy for soft drink companies. In fact this is the case,

all the major brands like Pepsi, coca cola, and thumps up, mainly targetyounger generation in India.

In Europe, as average population is older than Asian countries, Coca cola targeted the older generation of the population. Similarly in USA, Pepsi targeted the generation X (younger generation) as they comprises majority of the population and they positioned Pepsi in the mind of youth that Pepsi is for the youth.

Pepsi targets the youth of India. Its campaigns generally focus on the teens

and young adults. It attempts to capture the youth of today by focusing on

their personality, lifestyle and their attitude in its advertisements.

Geographic segmentation

Pepsico has segmented the market on the basis of rural and urban area. As

the climate of the country is hot and dry it aims at the geographical areas

where people actually require something to quench their thirst. That is why

pepsi came with chotta pepsi in rural areas to tap the market where people

want cold drink which is good as well as cost effective.

Taste and Preferences

According to the taste and preference of the customers pepsi came up with

a product like diet pepsi. It came up with diet pepsi in order to cater to the

needs of those people who are very health conscious.

Moreover with their nimobooz lemon drink the company has targeted the

most preffered Indian drink that is nimbu pani and has been a huge

success. The company has sold more than 50 lakhs cases of Nimbooz in just

2 years.

Behaviour segmentation

In occasions like parties, birthdays, sports and regular occasions the soft

drinks are preferred at every occasion. It is liked by each and every

member of the family whether a child or an adult or an teenager. Even if

there is no occasion due to environmental factors people do purchase pepsi.

Psychographic segmentation

Mirinda : Girls Savy drink

Dew : For the people who dare

My Can : for the trendy

Pepsi : for ‘Youngistan’.

Tropicana : heatlth conscious people.

Targeting

Pepsi targets both the rural as well as the urban segments. For urban

segments the targeting strategy is trendy cans ,fridge packs which is mostly

trendy and liked by the youngsters. The rural market is targeted with

entirely different strategy altogether. They keep price as an important

decision making variable.

Positioning

Pepsi has always been brand that embodies the most prevalent youth

sentiment. Over the years as ‘youth’ has evolved, so have Pepsi’s

positioning and language.

.Pepsi prefers to position itself as the beverage choice of the “New

Generation”, “Generation Next”, or just as the “Pepsi Generation”.

These terms adopted in Pepsi’s advertising campaigns are referring to the

markets that marketers refer to as Generation X. The Generation X

consumer is profiled to be between the ages of 18 to 29. They have high

expectations in life and are very mobile and active. They adopt a lifestyle of

living for today and not worrying about long-term goals. Though Pepsi’s

main emphasis is on this segment but they also have a focus on the 12 to 18

year old market. The rich deep blue colouring represents eternal

youthfulness and openness.

Communication Objectives PEPSI To separate brand identity for each products.

Extensive reminder advertising for repeat purchase.

Use of Teaser Adv. (Sanjay Dutt & Ranbir Kapoor) to supress

‘NOISE’.

Mention the Nutritional Value of product to increase consumer

awareness and build responsible brand image.

‘SIS’ to assist /boost impulse buying: Tropicana followed this strategy

quite succesfully.

Consumer Schemes to entice swift purchase action and also generate

more impulse buying as consumer have become more knowledgeable

and understand value for money hence prefer to products giving a

better deal with good quality products.

PepsiCo’s Campaigns

Pepsi

Pepsi began with the Yehi hai Right Choice Baby campaign, which has been one of the most memorable campaigns of the brand, featuring celebrity endorsers such as Shah Rukh Khan among others. The focus, as is clearly evident, is on the product with the youth as its target segment.

Yeh Dil Mange More and Yeh Pyaas Hai Badi were some of the later

campaigns. The latest campaign Yeh Hai Youngistan Meri Jaan also targets the youth.

Yeh Dil Mange More campaign was again a great success, having balanced the emotional as well as the functional appeal of the product. Featuring Sachin Tendulkar and many other leading stars at that point of time, this was also one of the longest campaigns carried out by Pepsi. The company however failed to maintain the trend and leverage it. Instead of moving on to a complete emotional appeal platform, the company decided on a product based promotion campaign. Though there is still some amount of emotional appeal to its campaigns, the principal focus is on the product - it being a preferred thirst quencher.

7 UP

In its early days, 7 UP inherited the global Fido-Dido campaign for promotion in India as well. However, with changing times and a contextual difference in India, a much more focused campaign was required. This led to the Keep It Cool campaign, which was targeted primarily at the youth and the teenager segment. Hence the appeal was at a more subtle, emotional level, which was meant to convey a potential lifestyle statement. The recent campaign of Bheja Fry essentially leverages on the same emotional appeal where the Keep It Cool campaign has been somewhat tweaked to have a local appeal.

Mountain Dew

Mountain Dew is the latest entrant in the product portfolio. This product too has the appeal of being the drink of a daredevil or the No Fear personality. The campaigns launched include Do the Dew and Darr Ke Aagey Jeet Hai. The initial campaign was unclear in terms of its appeal and the target segment, as a result of which the brand suffered some jolts in the beginning. However, the latest campaign captures the No Fear or the Macho Man image. In this sense, the brand directly competes with Thums Up from the Coca Cola Stable

About Youngistaan Campaign

This campaign has two new celebrities Ranbir Kapoor and Deepika

Padukone —who acted in the two most-talked about Hindi films in 2007,

to accompany brand ambassador Shah Rukh Khan. 

Ranbir confronts SRK while making a futile attempt at entering

Deepika’s room to grab a Pepsi, Ranbir spots a poorly lit neon sign that

reads ‘Young Hindustan Supermarket'. Due to the broken neon light,

Ranbir spots just a few letters. When asked, where he has come from,

Ranbir, based on this observation, replies, "Youngistaan".

“This time we wanted an all-encompassing theme. ‘Youngistan’ reflects

the mood of India’s youth, which is today keen to take the ropes and drive

India,” says Punita Lal, executive director, marketing, PepsiCo. 

“Youngistan”, hopes to cash in on the buzz surrounding today’s

youngsters. 

Youngistan is not so much a place and it is a state of mind of today’s

youth. “While the term is new, what it stands for – the GenNext attitude –

is not new”.

STP-Segmenting, Targeting and Positioning of

Youngistaan Campaign

Segmenting Pattern

Demographics

The campaign targets teens and young adults of metros and phase II cities.

Psychographics

The campaign attempts to capture the youth of today by focusing on their personality, lifestyle and attitude of youth through the advertisement.

Targeting Strategy

The Youngistaan Campaign uses undifferentiated targeting strategy

to reach out to its target audience. That is it launched youngistaan

campaign for all the target audience in the same way. 

Positioning

The campaign positioning is done on the basis of user approach i.e. a

personality based approach where a user’s image or association rubs

off on the brand image.

For this campaign Pepsi used the three most popular celebrities of the

last year i.e. Shahrukh Khan, Ranbir Kapoor, Deepika Padukone.

Placement of “Youngistaan Campaign”

The campaign was first launched on T.V during the tri-series matches in February. The campaign is launched with 360-degree activation across radio, outdoor, modern trade, and Web and wireless platforms. 

Pepsi has launched a website for Youngistan inside the Pepsi Cool Zone and is planning to make it a responsive peer group site where youngsters can visit and make comments on any topic. 

Pepsi Youngistan is also sponsoring ‘‘Wassup Youngistan” on MTV, a

show where youth can voice their thoughts. 

Advertising Agency of “Youngistaan Campaign”JWT (J. Walter Thompson) is the advertising agency of Pepsi

Youngistaan Campaign. The idea is fast climbing the popularity charts.

The seed of ‘Youngistaan’ germinated through a recent TV campaign

featuring the 'Saawariya' kid, Ranbir Kapoor, the present heart-throb of

millions, Deepika Padukone, and the ever-so-smart and smashing SRK.

PepsiCo India Executive Vice-President, Marketing (Cola), Sandeep Singh

Arora, while commenting on the new campaign said, "The new campaign

targets the youth of the nation, not only youngsters but also people young

at heart. ‘Youngistaan’ represents a never failing attitude, desire to take on

challenges and the power to turn things around."

Expressing his opinion regarding the ‘Youngistaan’ concept, Hari Krishnan,

Vice-President at JWT, said, "Youngistaan is a feeling that is racing through

every youthful nerve in the country today. Brand Pepsi will simply tap this

energy and help the youth express this emotion."

Advertising Strategy of Pepsi

• Pepsi’s target audiences are mostly teens and young adults and their

advertising reflects this in every possible way.

• The company changes its advertising strategy and image to reflect the

target's interests. 

• Pepsi makes sure that the advertisements reflect to the target audience’s

interests and nostalgia. 

• The advertising strategy includes cool, hip promos to attract more of the

target audience.

• The advertising is mostly creative and has different elements like music

and sports other than Bollywood.

• Pepsi.com also plays an important role in advertising and attracts target

audience by giving access to options like downloads, gaming, music mixing

applications etc.

Types of Appeal used in the Advertisements

Fear :

mountain dew advertisement depict the fear factor image by stating “ Darr ke agge Jeet hai”, this is one of the most successful campaigns for the company as this latest campaign certainly seems to be a step in this direction; the commercial attempts to associate the drink with one’s ability to conquer fear .  It appears to be a cautious move to reposition the brand in an attempt to make it more attractive to a wider consumer base.

Homour :

The homour appeal has been very well used in various ad campaigns of pepsi one of them being the snapshot of Chinese monk wherein he becomes after rigorous hard work of years he tasted success and later the ritual to hammer his head into the pepsi can to get the shape of the can on his forehead.

Sex and music

Evolution in PEPSI Logo

Slogans

1992 Gotta Have It

1993 Be Young, Have Fun, Drink Pepsi

1995 Nothing Else is a Pepsi

1996–1997: "Pepsi: There's nothing official about it

1997 Generation Next

1997–1998: "Generation Next" (with the Spice Girls)

1998–1999: "It's the cola" (100th anniversary commercial)

1999 The Joy of Cola

1999: "Yeh dil maange more"

2001 Yehi hai Right Choice Baby

2004 Yeh Dil Mange More

2007 Yeh Pyaas Hai Badi

2009: "Yeh Hai Youngistaan Meri Jaan"

2010: Youngistan Ka Wow

Media selection

Television

PepsiCo India, one of the country’s biggest advertisers, is diversifying its ad

spends away from television which once accounted for 90 per cent of the

budget, to focus on other media, especially online, as it aims to connect

with its core youth audience.

The company has recently launched a television campaign, which aims at

connecting with consumers through gaming. “The concept called ‘The

Game’ will bring together gaming and TV advertising. The idea is to involve

consumers in our advertising and not just doing one-way communication,

Outdoor Media

PepsiCo has increased the share of non-TV advertising spend to 30 per

cent of its advertising budget. This includes print, outdoor media, mall

advertising, mobile related applications and the Internet.

Internet

This year pepsico had decreased its superbowl expenditure budget to

increase its presence on online media to focus on youth. It has nearly

invested more than 20 million on online media with its refresh project and

create an impact on social networking sites like facebook twitter etc.

“Online advertising is a focus area for us because youngsters these days are

hooked to the Net,”.

Sponsorships

Pepsi has sponsored various sports events like icc world cricket league,

many india Pakistan matches, IPL and also many other regional events.

Pepsi Youngistan is also sponsoring ‘‘Wassup Youngistan” on MTV, a show

where youth can voice their thoughts. 

Marketing Expenditure

Advertising budget

Due to festive season coming up it is advised to

spenjhjhjh

The graph shows marketing expenditure done on

different brands by coca cola and Pepsico India.

Pepsi accounts for highest expenditure i.e. 383

million followed by mountain dew which again a

pepsi co’s brand. If the expenditure done all the

brands of Pepsi Co are summed up it comes up to

be $ 1092 million vis a vis coca cola is just $ 686

million.

Bibliography

www.google.com

www.pepsico.com

www.pepsicoindia.com

www.wikipedia.com

www.docstoc.com

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