BRAND EXTENSION OF PEPSICO

TROPICANA

PepsiCo

Entered India in 1989, within 2 decades became an INR1000 crore+ well known brand

According to Annual Report of PepsiCo 2014-15: Has 38 bottling plants and 3 food plants in India Recorded double digit growth(11%) in Indian market in 2014 PepsiCo India Holdings Pvt Ltd maintained its leading

position in juice in 2014 with a 28% value share through its brands Slice and Tropicana.

2012 2013 20140

10,000

20,000

30,000

40,000

50,000

60,000

70,000

Net revenuesCore Total Operating Profit

66,415

9,682

66,68365,492

10,061

10,313

In M

illi

on

$

*Global

PepsiCo Brand Portfolio

• Diverse portfolio of products, ranging from healthy eats to

tasty treats

• Includes major brands like: Pepsi, Lay’s, Kurkure, Tropicana

100%, Gatorade & Quaker, each generating over $1 billion in

annual retail sales

• PepsiCo, both the parent brand and manufacturer of Tropicana

introduced it in India in 2004

Tropicana

Launched in India in 2004

Two categories: 100% Juice and Juice based drinks

Amongst the top 5 leading Brands in Juices category in India

Slice, being relaunched under brand name Tropicana

Category Growth

• Health consciousness increases juice market in India by an off

trade value of 29% to INR82.9 billion in 2014

• Juice is set to increase in off-trade value at a CAGR of 19% at

constant 2014 prices over the forecast period, rising to

INR199.4 billion by 2019

Category Growth contd.

With increasing category growth, especially urban population looking for conveniently available packaged juices, Tropicana, earlier available in a 1L pack, now introduced 200ml Tetra pack at a price of INR 20.

Growth of Tropicana Brand

2012 2013 2014Maaza

Slice

Frooti

Real

Tropicana

Minute Maid

Appy

7UP

Onjus

Others

6.4% 6.7% 6.8%

Tropicana had a very slight growth as opposed to Slice, its sister brand from pepsiCo, which shot up from 16.1% in 2012 to 20.3% in 2014, & helped PepsiCo gain its leading position in Indian Juice market

Market Position of Tropicana

Slice Tropicana 7UP PepsiCo0

5

10

15

20

25

30

201220132014

• Tropicana has consistently maintained its rank in the top 5 brands for Juices in India

• Even though it has registered slight growth, it hasn’t been able to surpass the likes of Real (Dabur) and Frooti (Parle)

• Situation might change

with Slice Alphonso being introduced under the Tropicana brand

*All PepsiCo products growth in 2012-14

About the Product

Packaged in tetra packs to seal freshness, also have pictures of fresh fruits on label to indicate goodness

Claims to have goodness of 17 oranges, 1.14kgs Red grapes in 1L packs

Close Competitors are: Dabur Real juice, Coke’s Minute Maid

Consideration set of target customers may also include fresh juice instead of packaged juice

What do the advertisements convey?

The initial advertisements focused on the fights between breakfast and bed, 2010 focused on “making breakfast complete”

In 2011, started a campaign #MissedBreakfastBecause, also conducted an event in which people from different walks of life came together to share their reasons for skipping breakfast

Advertisements since 2014 focused less on missing breakfast and more on the goodness of having juice in the morning

Breakfast constituent to

provide complete nutrition(2010)

Healthy way to kick start your day

(2014)

https://www.youtube.com/watch?v=KUhRheDJ7-w

https://www.youtube.com/watch?v=3elfTmkASgw

https://www.youtube.com/watch?v=ich-sLK9YeA

https://www.youtube.com/watch?v=eQRqaQpVZjg

Pricing

In 2010, Tropicana 100% Juices was available in 200ml & 1L packs priced at INR 22/- & 85/- respectively in Orange, Apple, Mixed Fruit & Grape flavours

Presently, the 200ml & 1L 100% Juices are available at INR 20/- & 99/- respectively

Normal Tropicana Juice 1L pack available at INR 90/- for 16 flavours

How does Tropicana manage it’s distribution?

Target Custome

r

Modern

Traditional

On premises

Retail outlets like BigBazar, Reliance Fresh

Places like PVR, airport, PizzaHut, KFC, schools etc.

Traditional shops and kirana stores

Points of Parity Points of Difference

Packaged juice made from real fruits

Non carbonated beverage to quench thirst

As opposed to an emotional appeal used by Real, Tropicana uses a functional appeal to boast of the goodness of 17 oranges in every 1L pack: High nutritional value for complete breakfast

Apart from this, not much differentiation

Competitive frame of reference: Dabur Real

Positioning

From the 4 P’s we get a sense that Tropicana wants to position itself as a critical constituent of Breakfast

Tropicana’s 9 Fruit nutrients can add back nutrition to one’s short breakfast in this busy lifestyle

Targeted mainly at professionals, working couples, urban families with young children who don’t have time to sit and have a sumptuous breakfast

References

https://www.google.co.in/webhp?sourceid=chrome-instant&ion=1&espv=2&ie=UTF-8#q=pepsico%20annual%20report%202014

http://www.pepsicoindia.co.in/media/Press-Releases/release_05_26_10.aspx

http://pepsicoindia.co.in/brands/tropicana.htmlhttps://www.youtube.com/user/tropicanaindiahttps://www.youtube.com/watch?v=LUARQlNldZ8 http://

articles.economictimes.indiatimes.com/2012-10-17/news/34525381_1_juice-market-pepsi-s-tropicana-dabur-amla-hair-oil

http://www.foodcompanies360.com/summaries/pepsico-launches-new-tropicana-juice-variants-in-india.html

Thank You!