College Pepsi

7/29/2019 College Pepsi

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Company Profile :

"To be the world's premier consumer products company focusedon convenience foods and beverages. We seek to produce healthyfinancial rewards to investors as we provide opportunities for

growth and enrichment to our employees, our business partnersand the communities in which we operate. And in everything we do,we strive for honesty, fairness and integrity


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PepsiCo India is striding ahead rapidlytowards enabling the global vision to be theworld's premier consumer products company

focused on convenience foods andbeverages.

PepsiCo India seeks to produce healthyfinancial rewards for investors as it provideopportunities for growth and enrichment to itsemployees, business partners and thecommunities in which it operates.


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PepsiCo entered India in 1989 and hasgrown to become one of the countrysleading food and beverage companies.One of the largest multinational investors

in the country, PepsiCo has established abusiness which aims to serve the longterm dynamic needs of consumers inIndia.

PepsiCo India and its partners haveinvested more than U.S.$1 billion since thecompany was established in the country.PepsiCo provides direct and indirect

employment to 150,000 people including


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Marketing Mix / 4 Ps:


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Marketing Mix has been defined as the set of marketingtools that a firm uses to pursue its marketing objectives.These tools are classified into four broad groups,namely, Product, Price, Place and Promotion.

Marketing mix decisions should be made to influencetrade channels as well as final consumers. A firm canalter any of the four Ps accordingly, including changes inthe product and distribution channel as well.

The four Ps represent the sellers view of the marketing

tools available for influencing buyers. Whereas, from abuyers point of view, each marketing tool is designed todeliver a customer specific benefits according to his orher requirements.


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Product


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Brand name

This is the most important thing any Co. inthis Business needs to do if it wants toremain and succeed in the Business.Pepsi has successfully done that for so

many years. Pepsi has targeted the youthand has invested heavily in advertisingand building a brand image.

several campaigns and roping in megastars such as Shahrukh, Sachin, ganguly,Dravid etc.) that attracts to the youth and

this is one of the main reason for the


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Packaging and Size :

The products are available in packaging and sizes. Thisis done to facilitate the use according to therequirements of the Customer. Different packaging alsoaffects the usage pattern of the product in various

markets. e. g. sale of 2 lt. bottles is high in areas inwhich middle and high income group customers stay.But the sale of 200 and 300 ml bottles is high in areaswhere people in the lower income group bracket stay.The sale of 600 ml bottles is high in areas where

students etc. stay. Different packaging is also providedfor different products like Tetra Packs, Pet Bottles andGlass Bottles (in 200 and 300 ml).


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Price

Discounts:

Discounts are provided to Wholesalers and Slums butthere is no discount for retailers. The discounts arenegotiated directly with the Company and the C&F or the

Distributor point is not involved in the price negotiation. Allowances:

Allowances are given to salesmen on achieving theirdaily targets. This target is given to every Salesmaneveryday before he goes on his designated route. TheDepot In charge (Sr. C E / C E) gives the target to everysalesman in consultation with the TDM.


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Payment period and Credit terms

No credit is provided. The paymentprocedure is not flexible as the retailersare required to make on the spot

payments. At times, they defer thepayment and in that case, the Salesmaneither shows a shortage or pays the rest ofthe amount by himself. The wholesalersare also required to make in advance butat times they also defer the payment andmake the payment at a later date.


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Target Segment Youth:

The child/youth market is of crucial importance to drinksmanufacturers as under-19s constitute 20-30% of the population inwestern countries, making them a substantial and lucrative consumerbase. With many life-long consumption habits formed during youth,gaining high penetration in the children's and teenagers' market is ofkey importance to manufacturers with long-term ambitions and growthtargets.

Targeting Soft Drinks to Youths enables companies to:

Assess the size of the soft drinks opportunity by age group

Understand children's values and motivations and their impact on thesoft drinks market

Develop incumbent market position through enhanced targeting andpromotion

Assess trends in new product development in the children's marketover the course of the past 2 years

Combine business to business executive opinion and local fieldresearch


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Place

CHANNELS OF BEVERAGE


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CHANNELS OF BEVERAGE

INDUSTRY


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Indirect Channel (wholesalers)

Medium-sized organizations as a consequence of aggregation throughconsortia and mergingPlaying a fundamental role in beveragedistribution

Possess critical information regarding individual points of sale interms of volume, assortment, presence of competitors beverages, etc.

Due to the complexity of the marketplace, the entire logistical chain

must be able to sustain brands, products and services coherentlywithin the various channels, taking into account differing points ofsale and diverse customer needs. Additionally, each beveragemanufacturer must provide customers with an extensive set ofpackaging options, including:

Tracking product in various package sizes

Special labeling requirements for customers International/domestic packaging

Tracing / recall capabilities.

Statutory regulation is increasing.


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Modern Trade/Large Chain

Retailers

Greater power in negotiating purchases ofconcentrations and merges

Direct access to the consumer and atendency to protect this relationship frommanufacturer intrusion

Request contributions and discounts frombrand companies


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Small Individual Retailers

Huge number of small point sales Sometimes buyproducts directly through cash and carry or modern trade

Soft drink manufacturers profit from increased sales atthe expense of distributors margins

Soft drink distributors profit from positive local pricingenvironments, which, if exploited, reduce volume sales

Soft drink distributors continue to consolidate in anattempt to offset margin pressure through cost reduction

Despite these conflicting interests, it is crucial that

beverage manufacturers and beverage distributorsmaintain one face to the


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Distribustion


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Distribution Channal

Flexible ordering; flexible delivering Most retailers are demanding increased flexibility in order lead-times and

delivery methods, putting additional pressures on the supply chains ofmanufacturers and distributors. To withstand these pressures, companiesneed to streamline product movement through programs such as store-specific shipments. They must also meet the strategies of progressive

retailers, which require flow-through distribution and cross-docking.

Accurately forecast demand Properly forecasted demand drives two of the primary metrics used to

measure the efficiency of a beverage companys supply chain: customerservice and inventory. Accurate forecasts are essential to achievingimproved customer service and lower inventory levels. Even with recentsuccess in developing and maintaining efficient supply chain processes,forecasting inaccuracy remains a significant industry problem. According tothe 2003 GMA Logistics Study, more than one-third of all forecasts areinaccurate at the national level.


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Type of Store at which Product

available for Sale

General Provision Store or Kirana Store:

i.e. XYZ Provision Store

Departmental Store:

i.e. Natwar store or multipropose store

Super Stores:i.e. Sahaj Super Store , Dheeraj

Sons.

Super Mall:


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Promotion


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Trade promotions vary widely in terms of method,approach, and structure. Many local promotions are runad-hoc with marginal capital investments by field salesassociates, while others require significant investment

and involve pre-scheduling in co-operation with nationalchains.

Two of the most commonly used trade promotions in thebeverage industry are coupons and rebates. Couponand rebate management are critical to enhancing

relationships between the beverage manufacturer andwholesalers, customers and, in the case of coupons,consumers.


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Tools of Promotion

Television Ad

Radio Ad

News Paper Ad Magazine Ad

Hoardings ,Road Shows ,

Show & Turnament Sponcerships


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Coupon programs

which are in essence trade promotionsaddressed to the final consumer, aremainly executed via discounts at large

retailers. The coupon, a certificate with astated value, can be applied immediatelyor reserved for the next purchase. A

properly executed coupon programenables beverage companies to passsavings directly to the end consumer.


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Discounts :

Companies Are some time Givessome healthy discounts on their products.Like in some seasons, Festive days , Stock

Clearance etc. Also some offers Bye 1 Get1 Free , Bye 1 Get 80% off on 2ndPurchase. Free Gifts on purchase

Trade Discounts : When some Traders ,

Wholesalers & Retailers Purchase in bulk

size so Marketors will give them big


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Facilities to Wholesellers,Retailers


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Brand Promotion

In Brand Promotion Pepsi had coveredmany Hollywood stars, Bollywood starsalso National & International Sports

persons of Various games

In Sports in india M.S. Dhoni,SachinTendulkar, Shreesanth, S.

Raina,I.Sharma, Robin Uthaapa, etc


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Brand Promotion

In International level some footballers likeDavid Beckham,Ronaldinhiyo, TheoaryHenrry, messi,Steven Geraad etc


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Brand Promotion

Some Bollywood & Hollywood Celebrities like AmitabhBachchan,Shah Rukh Khan, John Abraham ,RanbirKapoor, Deepika Padukone, Preeti zinta etc

In Hollywood Cindy Crawford, Britney Spears, JustinTimberlake

They gives big status n image of brand to the consumerthrough there presents with brand & inspire to purchase


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Show & Event Sponcer


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Promotional events


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Hording Ads.


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Brand V/s Brand


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Competitors:

For Pepsi the biggest competition comesfrom Coke. Even outside India Coke isPepsi biggest competitor. Because of the

fierce competition from Coke, Pepsi has tobe very aggressive in promoting itselfthrough advertisements and othermethods like sales promotions. This is

evident in the immense expenditure Pepsiincurs on its advertisements andendorsements of its brand ambassadors.


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Marketing Information System

Marketing Information System: DefinitionMarketing Information System consists of people,

equipment and procedure to sort, analyze, evaluate and distributeneeded timely and accurate information to marketing decisionmakers. MIS is needed to counter issues like too muchinformation, too little information, too late information and inaccurate

information. The type of information required by Pepsi is regardingnew products launched by its competitors primarily Coke,promotional schemes and daily schemes of Coke and new brandendorsements etc. Information regarding new product launches isrequired by PepsiCo so that they can accordingly plan their strategy,while information regarding promotional schemes and daily arerequired by all the regional and territorial offices so that they canaccordingly introduce and test the schemes.


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Strategic Control

This is used to examine whether the Company ispursuing its best opportunities with respect to markets,products and channels. To do a proper assessment forstrategic control different instruments includingmarketing audit, marketing effectiveness, marketingexcellence review and the ethical and socialresponsibility review.

Marketing audit is a comprehensive, systematic,independent and periodic examination of a companys or

business units marketing environment, objectives,strategies and activities with a view to determineproblem areas and recommending a plan of action toimprove the companys marketing performance.


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Rivalry Competition


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Celebrities Promotion


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CONCLUSION

The Sales and Distribution Network of Pepsi is very strong andalmost flawless.

PepsiCo India had the first mover advantage when it entered themarket and it capitalized on that advantage to grab the market.

Franchisee based operations combined with the Companysoperations add strength to the overall presence of the Company in

the market. Franchisee takes care of its operations and PepsiCo does not

interfere in its operations. The Franchisees are required to report tothe Company at specific time intervals.

The Advertising Campaigns are conceived, implemented by thePepsiCo and Franchisee has no say in that.

Promotional activities within every territory are under the territoryoffice and the officials of that office are responsible for theeffectiveness and successful implementation of these campaigns.

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College Pepsi

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