Pepsi Final Formative Assignment

8/3/2019 Pepsi Final Formative Assignment

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Name:- Sudeep Poudel

Roll Number:- 03320002

Programme:- Advance Diploma in Advertising and Graphic Design

3 year Programme

Assignment Final project

Formative Assignment Level FCLII

PEPSI COLA


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COMPANY PROFILE

PEPSIco is one of the largest companies there is that is engaged in the food, beverage, and snack

industries. Their address is 700 Anderson Hill Road, Purchase, N.Y. 10577. Their phone number is

914-253-2000 and their fax number is 914-253-2070. Their stock symbol is PEP and they are listed on

the NYSE.Business Summary: PEPSICo, Inc. is engaged in the snack food, soft drink, juice, and fast food

franchise businesses. The Company, through its subsidiaries, markets, sells and distributes various
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they are also thinking of ways in which to increase market share in other beverage categories.

Although the goal of both companies are exactly the same, the two companies rely on somewhat

different marketing strategies.

PEPSI has always taken more risks, acted rapidly, and was always developing new advertising ideas.Both companies have also relied on finding new markets, especially in foreign countries. In the foreign

markets, Coke has been more successful than PEPSI. For example, in Eastern Europe, PEPSI has

relied on a barter system that proved to fail. However, in certain countries that allow direct

comparison, PEPSI has beat Coke. In foreign markets, both companies have followed the marketing

concept by offering products that meet consumer needs in order to gain market share. For instance, in

certain countries, consumers wanted a soft drink that was low in sugar, yet did not have a diet taste or

image. PEPSI responded by developing PEPSI Max.The next step is to take fast action to develop a

product that meets the requirements for that particular region. Both companies cannot just sell one

product; if they do they will not succeed. They have to always be creating and updating their

marketing plans and products. The companies must be willing to accommodate their target markets.Gaining market share occurs when a company stays one-step ahead of the competition by knowing

what the consumer wants. My recommendation is to make sure the company is always doing market

research. This way they are able to get as much feedback as possible from consumers. Next, analyze

this data as fast as possible, and then develop the new product based upon this data. Once the product

is developed, get it to the marketplace quickly. Time is a very critical factor. In my opinion, with all of

these factors taken into consideration any company should give any company a good jump on market

share.

SOFTDRINK INDUSTRY IN INDIA

India with a population of more than 1.1 billion is potentially one of the largest consumer markets inthe world after china. The consumer market is popularly known as the FMCG market or the fast

moving consumer goods market. Soft drinks come under this category. Soft drink is basically

purchased in India basically for two reasons namely to quench thirst and for refreshment. The Indian

economy currently is passing through a bullish phase with increasing per capita income. Subsequently

the lifestyle of the Indian consumer is also changing with increased spending on entertainment,

refreshment etc. that is why soft drink companies are looking forward to India with great enthusiasm in

the future to increase their revenue.

The soft drink industry in India datesback to the 1940s when Parle introduced the first branded soft

drink called gold spot. Cola giant coca-cola was the first foreign soft drink company to setup its shop

in India in 1965. Coca-cola made a very good beginning and dominated the market right from the word

go. It faced no competition at that time. The marketing people did not even need to publicize coca-

cola. This extraordinary success of coca-cola can be attributed to the following factors,

Absence of contemporary competitive brand.The giant image of coca-cola in the western countries

preceded their entry into the Indian market, and Indians at that time were very fond of foreign goods.

Parle Exports Pvt. Ltd later introduced a lemon flavored soft drink called Limca in 1970. Before this

they had introduced a cola flavored drink called pepping which they had to withdrew in the face of

stiff competition from coca-cola. But the overtly conservative Indian government of that time with


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special interest in safe guarding the interest of the Indian companies started insisting that coca-cola

should agree on the following points in order to continue in India. Coca-cola decided to windup its

operations in 1977 rather than bowing to the Indian government. The main demands of the Indian

government were,

Dilution of equity, as the government felt that lots of foreign currency was being wasted.

Manufacturing of the secret concentrate in India. 13 Disclosure of the chemical composition of theconcentrate. The exit of coca-cola left a large vacuum in the soft drink market. But this also

accelerated the growth of several Indian soft drinks. Many new soft drinks like frooti, jump-in etc were

launched in the form of tetra pack. However the bottling plants and the distribution networks of these

companies were not up to the mark and left much to be desired. It took these companies almost one

year to come up with new flavors like Campa cola, Rush etc. to survive in the industry.

However Parle, the pioneer in the soft drinks market blazed its way to national prominence with their

product Thumps Up bearing the slogan happy days are here again which became a craze. This

particular slogan helped to win over the loyalists of coca-cola who were in a state of cola shock or cola

depression! Soon the soft drink industry started registering phenomenal growth rates and all parley

products namely Gold Spot, Limca and Thumps Up became the brand leaders in their own segments.

In spite of this the soft drink market had a huge untapped potential.

In 1990, coming of the multinational brand PEPSI and immediately started giving stiff competition to

Parley and Coke. The parent company of PEPSI was founded in 1890 at North Carolina in USA. Its

CEO is Roger Enrico. PEPSICo India Holdings Pvt. Ltd. in headquartered in Gurgaon and its CEO is

Ms. Indra Nyui. In India it has 34 bottling plants of which 8 are company owned bottling outlets

(COBO) and 26 are franchise owned bottling outlet (FOBO). SMV Beverages is a franchise owned

bottling outlet. Coca-cola reentered the Indian market in 1993 in collaborations with Parley India Ltd

PEPSICO IN INDIA

PEPSICo gained entry to India in 1988 by creating a joint venture with the Punjab government- owned

Punjab Agro Industrial Corporation (PAIC) and Voltas India Limited. This joint venture marketed andsold Lehar PEPSI until 1991, when the use of foreign brands was allowed; PEPSICo bought out its

partners and ended the joint venture in 1994. Others claim that firstly PEPSI was banned from import

in India, in 1970, for having refused to release the list of its ingredients and in 1993, the ban was lifted,

with PEPSI arriving on the market shortly afterwards. These controversies are a reminder of "India's

sometimes acrimonious relationship with huge multinational companies." Indeed, some argue that

PEPSICo and The Coca-Cola Company have "been major targets in part because they are well-known

foreign companies that draw plenty of attention." PEPSICo

has grown to become one of the countrys leading food and beverage companies. 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 and its partners have invested more than U.S. $1 billion since the company was

established in the country. PEPSICo provides direct and indirect employment to 185,000 people

including suppliers and distributors.

PEPSICo India Holdings Pvt. Ltd. operates through its subsidiaries including PEPSI Foods Ltd, Frito -

Lay India, and Tropicana Beverages Company. The company, through its subsidiaries manufactures,

bottles, and exports fruit juices and carbonated beverages and packaged snacks such as Lays, Ruffles,

Fritos, and Cheetos. PEPSICo India is based in Gurgaon, India.


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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 Indias 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, Tropicana100% fruit juices, andjuice based drinks = Tropicana Nectars,

Tropicana Twister, Slice, and the new brand Nimbooz by 7up with real lemon juice.Local brands=Lehar Evervess Soda, Dukes Lemonade and Mangola add to the diverse range of brands.

In snacks segment- PEPSICos 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 Lays Potato Chips;

Cheetos extruded snacks, Uncle Chipps and traditional snacks under the Kurkure and Lehar brands.

The companys high fibre breakfast cereal, Quaker Oats, and low fat and roasted snack options enhance

the healthful choices available to consumers. Frito Lays core products, Lays, 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 43

bottling plants in India, of which 15 are company owned and 28 are franchisee owned. In addition to

this, PEPSICos Frito Lay foods division has 3 state-of-the-art plants.

PEPSICos business is based on its sustainability vision of making tomorrow better than today.

PEPSICos commitment to living by this vision every day is visible in its contribution to the country,

consumers and farmers.PEPSICo India's agri-partnerships

with farmers help farmers across the country grow and earn more. PEPSICo's involvement in Indian

agriculture stems from its vision of creating a cost-effective, localized agri-base in India by leveraging

farmers access to world class agricultural practices. PEPSICo India worked with farmers and State

Governments to improve agri sustainability, crop diversification and raise farmer incomes. PEPSICo

helped transform the lives of thousands of farmers by helping them refine their farming techniques and

raise farm productivity, and customized solutions to suit specific geographies and locations.

The most ambitious project is a joint program, launched in 1989, between PEPSICo India, the PunjabAgriculture University (PAU) in Ludhiana and Punjab Agro Industries Corporation (PAIC) in

Chandigarh. The program focuses on evolving agricultural practices to help Punjab farmers produce

internationally competitive products. Over the last five years, PEPSICo has also collaborated with the

Thapar Institute of Technology to develop a high quality potato seed program.

PEPSICo was a pioneer in the concept of contract farming under which the company transfers

agricultural best practices and technology and procures the produce at a guaranteed price. To support

the initiative, PEPSICo set up a 27-acre research and demonstration farm in Punjab to conduct farm

trials of new varieties of tomato, potato and other crops. The program, which includes seed production,

has successfully evaluated the following crops,

Several varieties of basmati rice more than 200 varieties and hybrids of chilli 25 varieties and hybrids of corn More than 60 varieties of peanut More than 100 varieties and hybrids of tomato.

Additionally, the development of new tomato varieties has helped increase total annual production of

tomato varieties from 28,000 tons to over 200,000 tons in Punjab. Yields have more than tripled from

16 tons to 54 tons per hectare.


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16 Under the program, 6 high-qualities, high-yield potato varieties have also been introduced to Indian

farmers. These new potato seeds have helped to increase farm income and enabled PEPSICo to

procure world class chip-grade potatoes for its Frito Lay snacks division. The company has partnered

with more than 10,000 farmers working in over 10,000 acres across Punjab, U.P., Karnataka,

Jharkhand West Bengal, Kashmir and Maharashtra for the supply of potatoes. PEPSICo India has also

partnered with 1,200 farmers in Rajasthan to cultivate barley in a tie up with the United BreweriesGroup. PEPSICo Indias technical team also implemented a high quality seed program to deliver early

generation and disease free seeds to farmers.

Tropicana = Tropicana product is an American based company, and was founded in 1947 by Anthony

T. Rossi in Bradenton, Florida, USA. Since 1998, it has been owned by PEPSICo, Inc. PEPSI offers

the wide variety of products to meet the choice and preference from fun for your items to the products

choices that contribute to healthier life style.

Case Study of PEPSI


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I. CURRENT SITUATION

A. Corporate Overview and Financial Performance:

PEPSICo, Inc. is one of the most successful consumer products companies in the world, with 2000

revenues of over $20 billion and 125,000 employees. The company consists of: Frito-Lay Company,

the largest manufacturer and distributor of snack chips; PEPSI Cola Company, the second largest soft

drink business and Tropicana Products, the largest marketer and producer of branded juice. PEPSICo

brands are among the best known and most respected in the world and are available in about 190

countries and territories.

In 2000, PEPSICo has a reported net sale of $20,348 and a comparable net sale of $20,144 in

comparison to its 1999s net sales of $20,367 and $18,666 respectively. PEPSICo has increased its

comparable net sale of 8% in 2000 while it had an increase of 15% in 1999. This reflects the increasing

rate is going slower. On the other hand, PEPSICos interest expense declines 39% showing that thecompany is significantly lower the average debt level. Back to 1999, the report shows that the

companys interest expense dropped 8%, which indicates that the company is performing well in

managing its financial strategies. More details about the financial performance of the company will be

discussed in the later part of this paper.

B. Strategic Posture:


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1. Mission:

PEPSICo's overall mission is to increase the value of shareholder's investment. They do this through

sales growth, cost controls and wise investment of resources. They believe their commercial success

depends upon offering quality and value to their consumers and customers; providing products that aresafe, wholesome, economically efficient and environmentally sound; and providing a fair return to

their investors while adhering to the highest standards of integrity.

2. Objectives:

PEPSICos overriding objective is to increase the value of our shareholders' investment through

integrated operating, investing and financing activities. Their strategy is to concentrate their resources

on growing their businesses, both through internal growth and carefully selected acquisitions. Their

strategy is continually fine-tuned to address the opportunities and risks of the global marketplace. The

corporation's success reflects their continuing commitment to growth and a focus on those businesses

where they can drive their own growth and create opportunities.

PEPSICo believes that as a corporate citizen, it has a responsibility to contribute to the quality of life in

our communities. This philosophy is put into action through support of social agencies, projects and

programs. The scope of this support is extensive -- ranging from sponsorship of local programs and

support of employee volunteer activities, to contributions of time, talent and funds to programs of

national impact. Each division is responsible for its own giving program. Corporate giving is focused

on giving where PEPSICo employees volunteer.

3. Strategies:

As a consumer products company, PEPSICo does not have the major environmental problems of heavy

industry. Their biggest environ-mental challenge is packaging generated by their products. Packaging

is important to public health and a critical component of the distribution system that delivers products

to consumers and commercial establishments. To meet both consumer demand and safeguard the

environment, they recycle, reuse and reduce packaging wherever possible. Each business is also

committed to responsible use of resources required in manufacturing their products.

Continually fine-tuned to address the opportunities and risks of the global marketplace. Concentrate

our resources on growing our businesses, both through internal growth and carefully selected

acquisitions. Company developed its traditional products and expanded into low-fat and no-fat snacks

as well as salsas and dips.

4. Policies:

Employee networks to mentor and support minority & female employees.

Actively and diligently seek out qualified M/WBEs for all possible company requirements.


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Make every reasonable effort to help qualified M/WBEs to meet company standards.

Respect the privacy of all visitors who access and usethe companys corporate Web site

Treating all customers with respect, sensitivity and fairness, while providing some of the greatestproducts on earth.

We respect individual differences in culture, ethnicity and color. PEPSICo is committed to equal

opportunity for all employees and applicants.

Corporate program for training employees how to work and manage in an inclusive environment.

II. STRATEGIC MANAGERS

A. Board:

Roger A. Enrico, 56, is chairman of the Board and CEO. Mr. Enrico was elected as PEPSICos CEO in

April 1996 and as Chairman of the Board in November 1996, after service as Vice Chairman since

1993. Enrico, who once wanted to be an actor, understands that great marketing is pure theater. In his

29 years at PEPSICo (PEP), he has staged some of marketing's most spectacular productions. ''Coke's

leadership tried to put us out of business,'' he says flatly. ''But we did not look for a temporary boost or

a short-term gain despite the self-destructive business philosophy by our major competitor. We've been

honed by fire.'' He spun off PEPSI's capital-intensive bottling operations into an independent public

company. He spent $3.3 billion to acquire Tropicana, the leading orange juice brand.

Indra K. Nooyi, 45, is a Senior Vice President and CFO. She joined PEPSICo in 1994 as Senior VicePresident, Corporate Strategy and Development. Prior to joining PEPSICo, she was Senior Vice

President of Strategy, Planning and Strategic Markets for Asea Brown Boveri. Nooyi is responsible for

corporate staff functions, including legal, human resources and corporate communications, in addition

to her current CFO duties overseeing finance, strategic planning, mergers and acquisitions, information

technology, advanced technologies and procurement. She is also known in company circles for her

analytical abilities, a key component behind her rise. Nooyi, whose remuneration for fiscal 1999

totaled more than $1 million, is also believed to be the chief strategist behind PEPSICo's competition

with rival Coca-Cola.

Steven S. Reinemund, 52, is President and Chief Operating Officer. Mr. Reinemund was elected

President and COO in September 1999. He began his career with PEPSI as Senior Operating Officer

of Pizza Hut, Inc.

Peter A, Bridgman, 48, is Senior Vice President and Controller. Prior to assuming his current position,

Mr. Bridgman was Senior Vice President and Controller of The PEPSI Bottling Group and he was the

Senior Vice President and Controller for PEPSI-Cola North America from 1992 until 1999.


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Matthew M. Mckenna, 50, is Senior Vice President and Treasurer. Previously, he was Senior Vice

President, Taxes. Prior to joining PEPSICo in 1993 as Vice President, Taxes, he was a partner with law

firm Winthrop, Stimson, Putnam & Roberts in New York.

B. Top Management:

The top one of fifty most talented executives of the company, Roger A. Enrico, demonstrates his

excellent ability of leadership as representing the company to show the Wall Street that PEPSICo can

deliver superior performance quarter after quarter. One of Enrico's top priorities is to attract more

investors into the stock.

In international markets, Enrico still faces several obstacles in building PEPSI's soda business;

however, he builds up his strategy to place his biggest bets on developing markets, such as India,

China, and Russia. ''The key thing is not to merely plant flags,'' says Peter M. Thompson, CEO

ofPEPSI-Cola International. ''It's to make sure you build a business, customer by customer, block by

block, day by day.'' In India, where per capita soft drink consumption is seven servings a year, vs.

more than 700 in the U.S., and where deliveries are often done on three-wheel bicycles, PEPSI finds

the most prominent businessman in each town and gives them exclusive distribution rights, tapping

their connections to drive growth. Over the past five years, volume has risen at a 26% annual

clip. PEPSI has stolen 19 points of market share from Coca-Cola, bringing PEPSI's share to 47%,

close to Coke's 52%.

III. EXTERNAL ENVIRONMENT

A. Societal Environment:

1. Economic Factor:

The key elements taken into consideration are the principal market risks, which PEPSICo is exposed to

interest rate, foreign exchange rate and commodity prices. These are specified as :

(a) Interest rate on PEPSICos debt as well as it short-term investment portfolio: PEPSICo can manage

its overall financing strategies in term of balancing investment opportunities and risks. The company is

using interest rate and currency swaps to effectively modify the interest rate in order to reduce the

overall borrowing costs.

(b) Foreign exchange rate and other international economic conditions: Operating in international

markets involve exposure to movements in currency exchange rates, which typically affect the

economic growth, inflation, interest rate, government actions and other factors. Once these changes

occur, they will cause PEPSICo to adjust its financing and operating strategies. Changes in currency

exchange rates that would have the largest impact on translating PEPSICos international operating

profit include Mexican peso, British pound, Canadian dollar and Brazilian real. Through years, macro-

economic conditions in Brazil, Mexico, Russia and across Asia Pacific have adversely impacted on


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PEPSICos operations. Especially, the economic turmoil in Russia which accordingly resulted in the

devaluation of the ruble in 1998 caused the significant drop in the soft-drink demand.

(c) Commodity prices that affect the cost of raw materials: PEPSICo is subject to market risk with

respect to commodities because its ability to recover increased costs through higher pricing will be

limited by the competitive environment in which it is operating.

2. Technological Factor:

Development of additives such as sugarless sweeteners, caffeine free products, and new flavorings

enables PEPSICo to provide products that meet changing customer tastes and preferences. In addition,

computerized manufacturing technologies are great contributions to higher efficiency and quality in

bottling operations. For PEPSI, a critical business challenge is ensuring that the distribution processes

can deliver the right products to the right place at the right time. According to Jerry Gregoire, Vice

President, Information Services, The competitive advantage will go to the company that can apply

technology to areas such as logistics, getting costs out of the distribution pipeline and getting products

into the stores less expensively while increasing the availability of sales information.PEPSINAs

data communication network is an important element in the companys efforts to address sales and

distribution challenges with technology. Connecting nearly 330 manufacturing, distribution, and sale

sites around the U.S. and Canada, the PEPSI NA network transports data help management in

controlling inventory. For instance, sales data helps managers identify regions where certain products

are not selling well, and move any excess inventory to areas where those products are in demand. Sales

data also helps PEPSIs managers make decisions about products before they reach the freshness date

and must be pulled from the shelf and discarded.

3. Political/Legal Factors:

(a) The Human Right Issue: Few years ago, PEPSICo did business in Burma (Myanmar) under the

brutal SLORC regime, the State Law and Order Restoration Council. As the SLORC moved to attract

international investment, two millions people have been forced to work for no pay under brutal

conditions to rebuild Burmas long neglected infrastructure. What PEPSICo did at the time was

patronizing the SLORC regime in what they called rebuild the countrys infrastructure. PEPSICo

also said it helps the economy by buying "products such as mung beans, sesame seeds and rattan from

small, local farmers." The issue addressed is whether these products were made by forced labors. In

fact, PEPSICo must export their products for hard currency because it cannot use Burma's nearly

worthless currency to buy imports of supplies for its bottling plants. As the result, PEPSICo had lost

contracts at Harvard, Stanford, Colgate and other universities because it refuses to name the sources of

these farm products.

(b) FDA Regulation: As a food product manufacturer, PEPSICo is under the control of the Food and

Drug Administration. For example, the FDA tests and certifies new ingredients such as high-intensity

sweeteners before they are allowed to be used in soft drink production.

(c ) Waste Management and Public Concerns: Growing environmental awareness is leading to


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increasing legislation. The companys operation is affected by federal legislative proposals that address

the four objectives:

- Minimize the quantity of packaging material entering the nations solid waste system

- Minimize the consumption of scarce natural resources

- Maximize the recycling and reuse of packaging materials

- Protect human health and the natural environment from adverse effects associated with the disposal

of packaging materials. For example, Connecticut has already passed a law that regulates packaging to

increase its recyclability.

4. Socio-cultural Factor:

Consumers today are not as much joyous to cola products as they were before. Age and ethnicity are

two main characteristics that affect consumer preference for soft drinks and alternative beverages.

With age, health concerns become more of a factor when choosing a beverage. To illustrate, some

studies show that cola products or soft drink in general may cause kidney stones and other related

diseases. In contrast to older consumers, younger consumersparticularly teens and those in their

twentieshave less attention spans for products and are more likely to prefer products that seems to be

fun and different . Although PEPSICo is the number one seller in carbonated beverages, it lost is

market share in 2000 as consumers seek for alternative beverages. As the matter of fact, PEPSICo

switches to non-cola products such as bottle-water, ready-to-drink tea and sports drinks. In turn,

bottled water gained the market share up to 12.8% in unit sales.

B. Task Environment:

1. New Entrants:

It is important when PEPSICo can identify what costs potential entrants to enter the soft drink industry.

The production technologies required for manufacturing soft drinks is widely available for the

potential entrants. However, competing on a national or global scale requires the ability to manufacture

and distribute a well-recognized brand. Therefore, not only PEPSICo is the one who have to spend a

tremendous fund on advertising campaigns, other companies such as Coca-Cola and Cadbury

Schweppes have to go on the same path. According to the Beverage Industry, PEPSICo had a great

number of commercials during the super-bowl. Coca-Cola Co., PEPSICo, and Cadbury Schweppes

spent a total of $469.1 million on media advertising in the U.S. market between January and

September 1996. Will new entrants be able to spend a tremendous amount to advertise themselves, or

in other words, to create their big names in order to deprive the market shares from PEPSICo or

Coca-Cola.

Another aspect is the distribution challenging in some Asian countries such as China, Indonesia and

India, where poor road conditions and other infrastructure problems may prevent the effective delivery


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by trucks. The question is whether PEPSICo can have a competitive advantage to overcome these

difficulties, then it will be difficult for the new companies who want to distribute their products.

2. Existing Companies:

The U.S. and global soft drink industries are quite concentrated. Long dominated by two companies,Coca-Cola Co. and PEPSICo, the industry saw the emergence of a third significant player when

Cadbury Schweppes acquired the Dr. Pepper and 7UP brands in 1995. Table below shows that the top

three firms accounted for 90% of the U.S. soft drink market in 1998 vs. 2000. The top one is still

Coca-Cola with market share of 44% in 2000, next would be PEPSICo with 30.9% share. Dr.Pepper &

7UP goes down slightly in 2000 at 14.4%. There are some changes on market shares to other

companies but the changes are not significant.

U.S Soft Drink Market Share in 1998 vs 2000

Gallons Market Volume

Company Rank Millions(1998) Millions(2000) 1998 Share 2000 Share

Coca-Cola Co. 1 6,223.90 4,491.5 43.80% 44.0%

PEPSICo Inc. 2 4,370.20 3,157.4 30.80% 30.9%

Dr.Pepper&7UP 3 2,060.40 1,473.1 14.50% 14.4%

Cott 4 357 300 2.50% 2.9%

National Beverage 5 270 214.0 1.90% 2.1%

Royal Crown 6 254.6 106.3 1.80% 1.0%

Monarch 7 138.5 11.8 1.00% 0.1%

Big Red 9 32 26.7 0.20% 0.3%

As discussed in Social-cultural Factor part, consumers tastes change over the time. Instead of drinking

cola products, consumers switch to water or fruit juices. Competitors may take this advantage to

market their products. One example is the agreement between Ocean Spray Cranberries Inc. and

Beijing Huiyuan Beverage Group, which is the largest juice company in China. Ocean Spray grants a

ten-year license to Huiyuan manufacture, market and distribute its products.

3.Trends:

The market for soft drink is expected to grow at a slower rate in the next four years, according to a


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series of new global soft drink reports published by Beverage Marketing Corporation. The industry had

a five-year compound annual growth rate (CAGR) of 5.0% between 1993 and 1998. But for the five-

year period from 1998-2003, the CAGR is estimated to drop to about 4%. Although colas are the most

important soda flavor on the market, the strongest growth in the industry is in the non-cola segment.

IV. INTERNAL ENVIRONMENT

A. Corporate Structure

PEPSICo owns its corporate headquarters buildings in Purchase, New York. The company is engaged

in the snack food, soft drink and juice businesses. Each product category is further divided into North

America segmentUS and Canadaand international segment. (PEPSICo 2000 Annual Report)

Frito-Lay North America (FLNA)

Frito-Lay North America manufactures, markets, sells and distributes salty and sweet snacks. Productsmanufactured and sold in North America include Lays and Ruffles brand potato chips, Doritos and

Tostitos brand tortilla chips, Cheetos brand cheese-flavored snacks, Fritos brand corn chips, a variety

of branded dips and salsas and Rold Gold brand pretzels. Low-fat and no-fat versions of several brands

are also manufactured and sold in North America.

Frito-Lay International (FLI)

Frito-Lay International manufactures, markets, sells and distributes salty and sweet snacks. Products

include Walkers brand snack foods in the United Kingdom, Smiths brand snack foods in Australia,

Sabritas brand snack foods and Alegro and Gamesa brand sweet snacks in Mexico. Many of our U.S.

brands have been introduced internationally such as Lays and Ruffles brand potato chips, Doritos and

Tostitos brand tortilla chips, Fritos brand corn chips and Cheetos brand cheese-flavored snacks.

Principal international snack markets include Mexico, the United Kingdom, Brazil, Spain, the

Netherlands, Australia and South Africa.

PEPSI-Cola North America (PCNA)

PEPSI-Cola North America manufactures concentrates of brand PEPSI, Mountain Dew, Mug, Slice,

Fruitworks, Sierra Mist and other brands for sale to franchised bottlers. PCNA also sells syrups to

national fountain accounts. PCNA markets and promotes its brands. PCNA also manufactures, marketsand distributes ready-to-drink tea and coffee products through joint ventures with Lipton and Starbucks

and licenses the processing, distribution and sale of Aquafina bottled water. In addition, PCNA

manufactures and sells Dole juice drinks for distribution and sale by PEPSI-Cola bottlers.

PEPSI-Cola International (PCI)

PEPSI-Cola International manufactures concentrates of brand PEPSI, 7UP, Mirinda, KAS, Mountain


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Dew and other brands internationally for sale to franchised bottlers and company-owned bottlers. PCI

operates bottling plants and distribution facilities in various international markets for the production,

distribution and sale of company-owned and licensed brands. PCI markets and promotes its brands

internationally.

Principal international markets include Mexico, China, Saudi Arabia, India, Argentina, Thailand, theUnited Kingdom, Spain, the Philippines and Brazil.

Tropicana

Tropicana produces, markets, sells and distributes its juices in the United States and internationally.

Products primarily sold in the United States include Tropicana Pure Premium, Seasons Best,

Tropicana Twister and Dole brand juices. Many of these products are distributed and sold in Canada

and brands such as Fruvita, Looza and Copella are also available in Europe.

Principal international markets include Canada, the United Kingdom and France.

B. Corporate Culture

PEPSICo, Inc. has been systematically changed over the past two decades from passivity to

aggressiveness in order to avoid stagnation and to adapt to changing competitive threats and the

changing economic or social environments.

Once the company was content in its number two spot, offering PEPSI as a cheaper alternative to

Coca-Cola. But today, a new employee at PEPSICo quickly learns that beating the competition,

whether outside or inside the company, is the surest path to success. In its soft-drink operation, for

example, PEPSI's marketers now take on Coke directly, asking consumers to compare the taste of thetwo colas. The culture of the company now is based on the goal of becoming the number one of soft

drinks.

Managers are pitted against each other to grab more market share, to work harder and to wring more

profits out of their businesses. Because winning is the key value at PEPSI, losing has its penalties.

Severe pressure was put on managers to show continual improvement in market share, product

volume, and profits. All Employees know they must win merely to stay in placeand must devastate

the competition to get ahead.

To keep everyone on their toes, "creative tension" is continually encouraged among departments

at PEPSI. The staff is kept lean and managers are moved to new jobs constantly, which results in

people working longs hours and engaging in political maneuvering just to keep their jobs from being

reorganized out from under them.

C. Corporate Resources

1. Marketing:


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PEPSI has now beaten Coke in the domestic take-home market, and it is mounting a challenge to

Coca Cola overseas. PEPSI has been making inroads: Besides monopolizing the Soviet market, it has

dominated the Arab Middle East ever since Coke was ousted in 1967, when it granted a bottling

franchise in Israel.

The companys products are transported from manufacturing plants to its major distribution centers,

principally by company-owned trucks. The company utilizes a direct store delivery system, whereby

its sales force delivers the products directly from distribution centers to the store shelf. This system

permits the company to work closely with retail trade locations and to be responsive to their needs.

The company believes this form of distribution allows it to have a marketing advantage and is essential

for the proper distribution of products with a short shelf life.

PEPSICo has developed the national marketing, promotion and advertising programs that support

the its many brands and brand image, oversee the quality of the products; develop new products and

packaging, and coordinates selling efforts. (PEPSICo 2000 Annual Report)

2. Finance:

PEPSICo, Inc. manufactures, markets and sells soft drinks and concentrates (PEPSI-Cola, Mountain

Dew, Slice, etc.), snack foods (Frito-Lay) and Tropicana branded juices. For the 12 weeks ended

3/24/01, net sales increased 8% to $4.54 billion. Net income increased 18% ($498 million). Revenues

benefited from volume gains across all divisions. Net income also reflects an increased gross profit due

to higher effective net pricing. Even though sales of PEPSICo were going down slightly on the last

three years but they still have very high profits on that years. On the Ratio PEPSICo just only 33% on

debt/equity ratio and profit margin is 10.9 compare with industry just only 8.10%. On the first quarter

of this year net sales advance 8% to over $4.5 billion with earnings per share increasing 17% to $.34.PEPSICo is very strong revenue growth.

EPS grows 15% in the 16-week quarter to 38 cents, and 17% for the 52-week year to $1.45

Each division boosts Q4 volume, and gains market share for the year

Net sales advance 8% to over $6 billion for the quarter, annual sales grow 8% and exceed $20

billion

Every division posts double-digit operating profit growth in the quarter, annual operating profits

advance 13% to $3.5 billion

Operating cash flow grows 33% to $2.7 billion

Return on invested capital (ROIC) improves to 23% -- a 250 basis point increase

2 001 outlook for continued double-digit earnings growth


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3. Operations:

Most of the sales are through the companys own direct store distribution (DSD) systems, where

they actually take the products to stores and put them on the shelf. These systems reach hundreds of

thousands of outlets, from the tiniest liquor stores to the mightiest club store. The DSD systems givethe company the ability to merchandise its products for maximum appeal to consumers.

PEPSICo has been adding new platforms for growth, which strengthen the companys portfolio and

enhance its vitally important innovation capabilities. For example, in January 2001 the company

acquired a majority of the South Beach Beverage Company, whose SoBe line of drinks adds to

the PEPSI-Cola portfolio some of the fastest-growing brands in the fastest-growing segment of the

industry, non-carbonated beverages.

Another example is the planned merger with the Quaker Oats Company, which is expect to complete

in the second quarter of 2001. This is without question the biggest step to ensure a bright future of

growth for PEPSICo. The merger will make PEPSICo an even more effective competitor in the

expanding market for convenient foods and beverages. It will add two very powerful brands to its

portfolio, Gatorade and Quaker, and create new opportunities for every PEPSICo division. The

combined enterprise will rank among the world's five largest consumer product companies.

PEPSICo bought $383 million worth of goods and services from minority-owned and women-owned

suppliers in the year of 2000. The Women's Business Enterprise National Council named the company

among America's Top Corporations for Women's Business Enterprise. PEPSICo minority and women

business development programs were rated among the top-10 nationally by the National Minority

Supplier Development Council.

We were named by Fortune magazine to its list of America's "50 Best Companies for Minorities," by

Hispanic magazine to its list of "The Hundred Companies Providing the Most Opportunities to

Hispanics," by Latina Style magazine to its list of "The 50 Best Companies for Latinas," and by

Minority MBA magazine to its list of "Ten Top Companies for Minority MBAs."

The company encourages conservation, recycling and energy use programs that promote clean air and

water and reduce landfill. Last year, the Occupational Health and Safety Administration named two

more PEPSICo facilities to its top "STAR" status as part of the agency's Voluntary Protection

Program.

4. Human Resources:

The company has a wealth of talent across the corporation. It starts with its exceptional frontline

team, the people out there serving the customers 365 days a year, and it extends to our corporate staff.

The company not only has great opportunities, but the skills, experience, dedication and intellectual

horsepower to make the most of them.


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The companys continued growth has created outstanding career opportunities for talented

professionals in a variety of specialized fields, such as information technology, treasury, tax, human

resources, law, accounting, public affairs, audit. All successful applicants share a commitment to

PEPSICo's goals and an ability to thrive in a fast-paced, results-oriented environment. In exchange, the

company offers a highly competitive compensation and benefits package.

PEPSI executives are expected to be physically fit as well as mentally alert: PEPSI employees four

physical-fitness instructors at its headquarters. It is an unwritten rule that to get ahead in the company a

manager must stay in shape. The company encourages one-on-one sports as well as interdepartmental

competition in such games a soccer and basketball.

5. Information Systems:

In responding to market demands for efficient 24-hour "order-to-delivery" process for customer

orders, PEPSICo has installed a computer system that links an effective wide area network that allows

immediate transmission of customer orders.

The outcome has been to integrate with a wide area network, transmit accurate, comp lete customer

order data, allowing the company to more efficiently load trucks, schedule deliveries and save man-

hours.

V. ANALYSIS OF STRATEGIC FACTORS

A. Key strategic factors are:

1. Recyclability of Containers

Due to the liquid nature of PEPSIs product, it is necessary that a solid and non-porous container be

used to store the product. This fact leads to the use of plastics, aluminum, and glass as materials for the

containers that PEPSI is stored in. These materials work very well for the purpose of their use,

however these materials do not biodegrade easily. Every day, 93 million empty soft drink bottles and

cans are thrown away, rather than recycled. In November 2000, the boards ofPEPSI and Coke passed

resolutions for future container recycling targets. The resolutions call upon management to establish

recycling targets and prepare a plan to achieve them by January 1, 2005. There are two goals: (1)

achieving an 80 percent national recycling rate for bottles and cans; and (2) making plastic bottles with

an average of 25 percent recycled plastic. The implementation of these resolutions will have a future

effect on the cost basis of PEPSIs product, and a positive environmental impact if the recycling targets

are met.

2. Continued growth to other segments, decline of cola interest

The beverage industry is moving towards the alternative drinks sector. Although in recent times,

mainstream beverages have been making a revival, it is obvious that alternative drinks will continue to

grow. PEPSI can utilize its excellent brand recognition and reputation to invest in and capitalize on


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growth in this area, and increase it market share against Coca-Cola at the same time.

3. Increased use of exclusivity agreements with restaurant chains and college campuses

Coca-Cola has a majority of exclusivity with restaurant chains including McDonalds and other major

fast food chains. The benefits of exclusivity agreements give Coca-Cola a major advantage in channeldistribution. The major reason Taco Bell was purchased by PEPSI was to create a new channel

for PEPSI to be sold in restaurants. In addition to restaurants, soft drink manufacturers are willing to

engage in "cola wars" to win the rights to supply all the machines in a given school in return for a

commission. The funds go to support financially starved school programs that could range from buying

new library books to beefing up the computer lab.

4. Coca-Colas market dominance

The dominance of Coca Cola in the soft drink market has always been considered a major factor

for PEPSI management. As long as Coca Cola continues to retain a dominant market

share, PEPSI should continue to aggressively acquire Coca Cola market share.

5. Excessive work pressure resulting in exodus ofPEPSI management

The creative tension which is constantly being placed onPEPSI management has resulted in a

number of management leaving the company for Coca Cola. Coca Cola has consistently been able to

acquire the PEPSITigers, or very good managers, away fromPEPSI.

B. Evaluation of the current mission and objectives

1. Mission

The overall mission of PEPSICo is to increase the value of shareholder's investments. This is achieved

through sales growth, cost controls and wise investment of resources. PEPSICo believes that their

commercial success depends upon offering quality and value to their consumers and customers;

providing products that are safe, wholesome, economically efficient and environmentally sound; and

providing a fair return to their investors while adhering to the highest standards of integrity.

2. Objectives

a. Concentration of resources on growth of businesses through internal growth and carefully selected

acquisitions

PEPSICo has adopted a plan for growth by continually addressing the opportunities and risks

associated with the global marketplace. The corporation's success reflects their continuing commitment

to growth and a focus on those businesses where they can drive their own growth and create

opportunities.


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b. Contribute to the quality of life in communities

PEPSICo believes that as a corporate citizen, it is responsible to contribute to the quality of life in the

communities it serves. This policy is implemented through support of social agencies, projects, and

programs. The company also supports employee volunteer activities through contributions of time,

talent, and funds. Each PEPSICo division is responsible for its own giving program with corporategiving focused on supporting employee volunteer activities.

VI. STRATEGIC ALTERNATIVES AND RECOMMENDED STRATEGY

Out of the many strategic alternatives that PEPSICo could choose to follow, we have chosen to

endorse one that fosters continued growth and diversification. Although their over-diversified portfolio

has hindered their International Growth, these strategies strengthen their overall corporate worth and

market presence domestically.

As consultants for PEPSICo, we are making the following recommendations:

PEPSI should focus on increasing sales globally to compete effectively with Coke. They have been

beaten badly in some markets, and need to focus more on "un-tapped" areas.

Continue to diversify their beverage selection through acquisitions. This will enable PEPSICo to

combat the decreased interest in cola. Going along with this, PEPSICo needs to ensure that they can

properly manage all of these acquired companies and should divest those that show limited potential.

Increase the use of exclusivity agreements to boost their sales in key markets. This may make it

harder to keep costs low but will ensure added revenues. Another reason why Coke has continued to

beat PEPSI is through its exclusivity agreements with restaurant chains, sports and entertainment

complexes, and college campuses. More attention in this area will help to battle Coke's dominance.

Capitalize on their aggressive corporate culture in overseas dealings. This can help to combat the

weakness of their current international strategies.

SWOT STRENGTH ,WEAKNESS,OPPURTUNITY THREATS PIECHART OF FIZZY SOFTDRINK

Market segmentation of softdrink industry:-

The following major segments of the soft drink drinkers have been identified:

1. Fashionable brand conscious consumers:This segment of people are generally in their twenties, who are uni students or make up the workingclass, drive fast cars(or would like to ) they socialize with friends and go to parties and dance clubs.They are carefree and are freestyle. When they buy this product, they buy the image, they buy thefashionable drink that exudes coolness.


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2. Average consumers:

These people are usually prone to purchase product out of mindless habit. This segment of consumershave successfully been brainwashed to some extent by advertising campaigns and heavy promotionsconducted by these companies. Again the age bracket is in the twenties, although teenagers tend to fallunder this category.

3. Peer pressured consumers:

This segment of the majority teenagers who purchase this product because their friends do it, ortheydo not want to appear daggy purchasing a local drink. They are less likely to request any ordinarydrink while purchasing.

4. Soft drink addicts:

This segment usually follows any particular brand that will have nothing other than there preferredbrand, no substitutes, no imitations. They are accustomed to the taste, and believe it is the distinctflavour that keeps them buying coke consistently. On the other side, these consumers are addicted tothe prizes and competitions offered by these companies, resulting in the purchase of that product

SOFT DRINK TARGET AUDIENCE /PROFILE

PEPSI SEGMENTING TARGETTING AND POSITIONING

Understanding Market Segments and Targets: Building the Right Relationships with the Right

Customers PEPSICo

Executive Summary

This report provides an analysis and evaluation of the Marketing Strategy of PEPSICo. Methods of

analysis include Market Segmentation, Market Targeting, Market Positioning, as well as the Marketing

Mix of PEPSICo.

The research draws attention to the Market Segmentation of PEPSICo. While the soft drink industry

has probably the widest and deepest customer base in the world, PEPSI did not use the majority fallacy

to market their product. Instead, PEPSI prefers to segment itself as the beverage choice of the New

Generation, Generation Next, or just as the PEPSI Generation. These terms adopted in PEPSIsadvertising campaigns are what marketers refer to as Generation X, which are profiled to be between

the ages of 18 to 29. In addition, PEPSICo also focus on another market, which includes Teenagers

that are between the 12 to 18 years old. PEPSI believes that if they can get this market to adopt their

product, they could establish a loyal customer in a long run.


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Despite being a strong #2 against Coca Cola, PEPSI has become the largest selling soft drink in the

world and is liked by people of all ages. A recent survey has shown that about 90% of the world

population prefers PEPSI when asked the question of which soft drinks do they prefer. The reason for

their linking is because PEPSI is able to give them a higher quality of taste and a large variety offlavors.

INTRODUCTION:

PEPSICo is a world leader in convenient snacks, food and beverages with revenues of more than $39

billion and over 185,000 employees. The company consists of PEPSICo Americas Foods (PAF),

PEPSICo Americas Beverages (PAB) and PEPSICo International (PI). Besides the PEPSI-Cola brands,

the company owns the brands Quaker Oats, Gatorade, Frito-Lay, SoBe, Naked, Tropicana, Copella,

Mountain Dew, Mirinda and 7up (outside the USA).

PEPSICos products are recognized and are most respected all around the globe. Currently, PEPSICo

has divisions which operates in three major US and international businesses: beverages, snack foods,

and restaurants. In each of these

businesses, PEPSICo has attained a leadership position as being the world leader in soft drink bottling,

the world largest snack chip producer, and the world largest franchised and company operated

restaurant system. The cooperations increasing success has been based on high standards of

performance, marketing strategies, competitiveness, determination, commitment, and the personal and

professional integrity of their people, products and business practices.

PEPSICos overall mission is to increase the value of our shareholders investments through sales

growth, investments and financial activities. PEPSICo believes their success depends upon the quality

and value of their products by providing a safe, whole some, economically efficient and a healthy

environment for their customers; and by providing a fair return to their investors while maintaining the

highest standards of integrity.

Market Segmentation

As we know that PEPSICo provides varieties of beverages such as carbonated soft drinks, sport drinks,

dairy-based drinks, energy drinks, fruit flavored beverages, ready-to-drink coffees, ready-to-drink tea,

mineral water and frozen beverage. These products are marketed under brand as PEPSI, Mountain


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Dew, Gatorade, Lipton, Starbucks, Tropicana, and so on. With these products, PEPSICo aims to attract

different groups of consumers.

There are two levels in which PEPSI segments its market:

Demographic

Niche marketing

Concentrated Marketing

Despite the large customer base in the Soft Drink industry, PEPSI prefers to segment itself as the

beverage choice of the New Generation, Generation Next, or just as the PEPSI Generation. These

terms adopted in PEPSIs advertising campaigns are what marketers refer to as Generation X, which

are profiled to be between the ages of 18 to 29. In addition, PEPSI shifted its focus to the growing

American teenage market in the 1990s by forming exclusive contracts with American schools and

developing advertising campaigns such as The Next Generation and the Joy ofPEPSI, featuring

Britney Spears. PEPSI believes that if they can get this market to adopt their product, they could

establish a loyal customer in a long run.Niche Marketing

PEPSI focused on varietal differentiation since 1990 by introducing a string of niche products. To

increase volume in order to counter flat coca sales, PEPSI introduced Sierra Mist in 2002-2003 to take

the place of 7-up and go head-to-head with Sprite. PEPSI has also tried to boost volume by introducing

products that appeal to specific target markets that it currently is not reaching. PEPSI has introduced

Code Red and Live Wire, extensions of Mountain Dew, PEPSI One, and PEPSI Blue. Finally, PEPSI

is countering declining sales of carbonated drinks through the marketing and distribution of Starbucks

ready to drink products, and the acquisition of SOBE and Gatorade. The success of PEPSIs Mountain

Dew Code Red launched in 2001 was the most successful soft drink innovation in 20 years and has

spurred even more niche product introductions for PEPSICo as well as other competitors.

BASES OF SEGMENTATION:


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Demographic

In focusing on the PEPSI-Cola beverage product, PEPSICo has retained a long history of concentrating

on youth as its main target marketGeneration Next! It has spent billions of dollars in trying to woo

the young and nearly young, implying that Coca-Cola is for the older generation. The reason why

PEPSI-Cola has fiercely targeted this market is because it is the largest amongst its users. Market

segment profiles have shown that the majority of carbonated beverage drinkers are youth and middle

age people. Also, PEPSI continually targets the college market in which they spend huge amounts of

money to compete with Coca Cola in acquiring contracts with universities (ie: CSUF) to have sold

representation of their product distribution. PEPSIs use this behaviorist segmentation has been a key

to the companys success.

Market Targeting

PEPSI customers are mostly Teenagers and Young Adults between the ages of 14 to 30. It alsotargets at Schools, Colleges, Universities, Homes, Restaurants, Hotels, and Stores.Market Positioning


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PEPSICo plans to further create positions that will give products the greatest advantage in their target

markets. PEPSI has been positioned based on the process of positioning by direct comparison and have

positioned their products to benefit their target market

Marketing Mix of PEPSI:

1.PRODUCT

2. Promotion

PEPSICo has advertised its products through many different ways and media. Through TV, we have

seen different advertisements of its products such as PEPSI or Dew. PEPSICo also advertise its

products by targeting those favorable television programs, like sports, TV series etc. In addition,

PEPSICo has also made used of some events like PEPSIfy Karogey? to promote its products.

Through newspapers like Jung and Dawn, PEPSICo has advertised a wide range of products it offers to

its customers. The usage of Posters are also used to create awareness of the products that PEPSICo

offers.

3. Place

Decisions with respect to distribution channel focus on making the product available in adequate

quantities at places where customers are normally expected to shop for them to satisfy their needs.

PEPSIs supply is low uncertainty. Some of its supply source capabilities are:

Less breakdownsHigh qualityFlexible supply capacityMature production process

Venues where PEPSI is sold off-site consumption include grocery stores, convenience stores and

vending machines. However, PEPSI is most effective in grocery stores where it has 33% market share.

This is contrary to the fountain station channel, where PEPSI has less than half the market share.Price

PEPSI being a company that emphasizes on product quality tends to sell its products with pricerange from moderately low to high prices, depending on the use and the targeted customers.


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5. Consumer Solution

PEPSICo offers a wide variety of products that ranges from Energy drinks, Tea, Water, to Carbonated

drinks. Each variety aims to meet the needs of different consumers of different demographics. For

example, Energy drinks such as Gatorade are catered for athletes whereas Tea such as Lipton Iced Tea

aims to provide quality taste for regular consumers. Therefore PEPSICo is able to reach a large group

of customers from different demographics because of its product variation.6. Customer Cost

Despite the fact that PEPSICo frequently lowers its price and eventually raises its price again, buyers

have not been affected by this pricing strategy. On top of that, PEPSI has always been very flexible

and reasonable with its pricing strategy. Depending on the product, prices are ranged from moderately

low to high.7. Convenience

As PEPSICo products are readily found in Supermarkets, Convenient Stores and Vending machines, it

is very accessible and convenient for consumers to purchase these products. Especially so for Vending

machines, which can be found in most buildings or public places.

8. Communications

Through various medium of Advertising such as TV advertisements, Posters, Newspapers and Events,

customers are aware of the different ranges of PEPSICo products. PEPSICo has also made used of

several celebrities such as Britney Spears to market its product. This creates a perception of a young

and cool image for the brand, which is easy for PEPSICos target market Teenagers and Young

Adults, to identify.

PRICE OF THE PRODUCT = Rs 25,Rs38,Rs 65

Conclusion

PEPSI has been successful in generating profits in this extremely rivalries industry. What the company

should do now is employ a strategy that now only addresses its own deficiencies in an effort to growmarket share, but one that will increase the overall size of the pie. This strategy, in the end, will allow

PEPSI to grow and sustain above-average return

PICTURE OF THE PRODUCT ADVERTISED


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Conclusion (Research) :- After this research I came to conclusion that pepsi is using blue color in it,

the ads of pepsi are mostly linked with the cricket and endorsed by the celebrity. I also came to know

that pepsis main rivals in the market is coca cola and it is using vector graphic to promote their

product. The research above shows that pepsi is globally accepted soft drink , it is mainly used in

celebration ,fun ,party.etc. As it is globally accepted and fun I want to use the flag of different country

and link it with the pepsi and fun to create print ad of the product.

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Pepsi Final Formative Assignment

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