Pepsi Killing It Softly
Pepsi Killing It Softly
Pepsi Killing It Softly
STUDY
Presented By:-
1. Kartikay Gulani - PGP21079
2. Shagun Gupta - PGP21240
3. Darpan Dixit - PGP21043
4. Neha Garg – PGP21109
5. Amit Choudhary-PGP21018
History
Originally created and developed in 1893 by CALEB BRADHAM
and was introduced as BRAD'S drink.
It was renamed as PEPSI-COLA in1898 and was later renamed as
PEPSI
Its manufacturer is PEPSICO Inc. , which is an
American multinational food, snack, and beverage corporation.
PEPSICO was formed in 1965 with the merger of the PEPSI-COLA
Company and FRITO-LAY.
PEPSICO’S net revenue for 2018 was 64.66 Billion US Dollars.
Facts about the Case:
The International Scenario
Rivalry between Coke and Pepsi ,they both were trying to
beat each other.
In 1987 Coke & Pepsi had 40.3% & 30.2 % of the U.S market
respectively.
Even internationally Coke outsells Pepsi
with market share of 10% and 3%
respectively.
The Indian Scenario:
Cola was the largest selling flavor in market.
In 1977 a change in government at a center led to the exit of
the Coca Cola.
The first national cola drink to pop up was Double Seven.
In 1980 another cola drink, Thumps Up was launched by Parle .
Thrill by Mc Dowell's in mid eighties and by the late eighties there
was Double cola .
The Indian soft drink industry was estimated to be 900 crores
An additional dimension to the Indian soft drinks was fruit drinks.
Pepsi in India:
In 1985 a proposal with R.P. Goenka group was rejected by the
government.
The Proposal:
Export of fruit juice concentrates from Punjab in return for the
import of cola concentrates.
The deal offered was 3:1 export import ratio.
Therefore second bid was widened to take in a food processing
division.
Acceptance of the Pepsi Offer in India in 1990.
Export import ratio was finally fixed at 5:1.
Cold drinks sale was fixed at 25% of total sales
Issue 1 : What were the elements of Indian market
environment that Pepsi co. had to tackle?
Elements of Micro Environment:
5. Social Environment:
Fear of Impact on diet.
Fear of Invasion of MNC Culture.
Issue 2:How were these elements managed?
Competitors:-
Collaboration/Shareholders:-
Suppliers:-
Customers:-
Political:
Food processing was included in second proposal
Assurance on meeting export regulations
Employment -500-direct and 30000-additional were assured
In the revised deal
Equity stakes were revised
PAIC 40% Voltas -24% ,Pepsi-36%
EXIM ratio fixed at 5:1
Indulged in political lobbying
Ensured the active participation of Punjab government.
Legal:
Compliance with legal requirements fighting out the cases inside as well as
outside.
Economic:-
Social:-
• Gave an Indian touch by naming it as Lehar Pepsi.
Technological:-
• Assured availability of high end technology.
• Established collaborations for development of agriculture.
Issue-3-what is your learning about “managing the
environment”?
1. Production:-
• Better and more efficient means of production.
• Introduction of variety of flavours.
• More choices available to the buyers in terms of products, brands
and flavour.
2. Market:-
• Growth in market size.
• Spread of market of Pepsi.
• Probable entry of Pepsi in fruit drinks.
3. Competition:-
• Increase in degree of competition.
• Probable exit of Pure drinks.
• Consolidations of small players.
• Incoming of more foreign players especially Coke.
4. Promotion:-
• Exposures to new forms of strategies and techniques.
• Increase in budgetary allocation to advertisements and sale
promotions.
• More aggressive form of promotion to be observed in the market.
Thank You