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Why Read Fiction? Why Go To: Movies? Soft Drinks Industry Has Enough Roller Coaster Plot-Dips To Make Novelists Drool

PepsiCo's globalization strategies involve both globalizing their products while also localizing them for specific markets. This "glocalization" approach helps increase sales in foreign markets. Factors like falling birth rates in Europe mean companies must look abroad for growth. PepsiCo entered India in the 1970s and had to navigate the country's political, legal, and social environments. Its marketing strategies in India included targeting youth and focusing on brands like Gatorade and Aquafina.

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31 views

Why Read Fiction? Why Go To: Movies? Soft Drinks Industry Has Enough Roller Coaster Plot-Dips To Make Novelists Drool

PepsiCo's globalization strategies involve both globalizing their products while also localizing them for specific markets. This "glocalization" approach helps increase sales in foreign markets. Factors like falling birth rates in Europe mean companies must look abroad for growth. PepsiCo entered India in the 1970s and had to navigate the country's political, legal, and social environments. Its marketing strategies in India included targeting youth and focusing on brands like Gatorade and Aquafina.

Uploaded by

prince vivek
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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“Why read fiction?

Why go to
movies? Soft drinks industry has
enough roller coaster plot-dips to
make novelists drool”
– Jesse Myers in Beverage Digest July
1985
Pepsi’s “Glocalization Strategies”
• What is “Glocalization”?
– Globalization + Localization = Glocalization
– By taking a product global, a firm will have more success
if they adapt it specifically to the location and culture
that they are trying to market it in.
• Due to the intense rivalry in the industry and increasing product
saturation in current markets, companies in the industry must
look to untapped foreign markets to sell their products and
increase their market share and profits.

• A major concern for European companies, is falling birth rates


that could seriously affect future demand for food products in
Europe. The population in Europe is expected to decrease to
431.2 million people by 2050, down from 455.2 million people
in 2005. Thus, companies in the food and beverage industry
increasingly realize that they must look across borders for new
customers
• The history, the romance, the struggle, the
courage, the endurance, the confidence and
the competition characterizes the presence of
an industry which no one in their wildest
imagination had dreamt would last so long.
Beginning in 1886, when a tumultuous,
inventive,
• Coca-Cola was the 1st international soft drinks
brand to
• due to norms set by the Foreign Exchange
Regulation Act (FERA), Coca-Cola left
India(1977) and did not return till 1993 enter
India in early 1970’s
Elements of Indian market environment that Pepsi co.
had to tackle

Elements of Micro Environment

Competitors Collabration
 Political environment

 Legal Environment
 Economic Environment
Macro
 Social Environment environment

 Technological Environment
1-Political Environment
Political
environment
Technological
Environment

Legal
Environment

Social
Environment

Economic
Environment

Macro
environment
CONCLUSION
 Focus on the youth of the middle-east countries.
 More focus on sales of Gatorade.
 PepsiCo is also reformulating its Aquafina Alive
water with a new sweetener blend that has fewer calories.
 PepsiCo has a steady growth rate and a very positive potential.
 PepsiCo is always looking into the future, trying to make
the company most profitable and suiting to its
shareholders.
 PepsiCo has proved to have a high and continuously
rising profit margin.
• Amidst various allegations and controversies, the soft
drinks industry in India, supported by its booming
economy, strengthening middle class and low per capita
consumption, is growing at a cruising pace. The focus
has shifted from carbonated drinks to Fruit drinks, with
both the companies launching Lemon drinks in 2009-
10. In the next few years, the fruit juice category is
likely to carry the growth flag forward as consumers
become more health conscious. The companies are
likely to take more steps to deal with environment
sustainability. But the Cola wars are here to stay. We as
customers can be assured of superior products and
hilarious ads in the process. And are we complaining?
Thank you
PEPSI : Pull towards lucrative Indian market

• The thirst for global presence made Pepsi to venture in India


with already inroads in 150 countries before India.

• The huge consumer base of 850 million in India can never be


ignored, in spite of all the odds

 Due to the fate of Coke in India the market entry had to be


prepared carefully.
Why Pepsi Enter into India
*Pepsi reached to saturation level in US market.

* Huge Population

* Untapped customer

* Urbanization

* Consumption 3 bottle per capita

* Climate
THE INDIAN SCENARIO:

Limca was the largest selling brand, cola was the largest selling flavor .

 In 1977 a change in government at a centre 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


Coke or Pepsi in the Long Run?
• Pepsi
– Better marketing and advertising
strategies
– More widely accepted
– More market share
• Coke
– Government conflicts
– Trailing Pepsi in market share

• Pepsi will fare better in the long run


Pepsi’s Lessons Learned
• Beneficial to keep with local tastes
• Beneficial to pay attention to market trends
• Celebrity appeal makes for exceptional
advertising
• It pays to keep up with emerging trends in the
market
Pepsi’s Lessons Learned
• Beneficial to keep with local tastes
• Beneficial to pay attention to market trends
• Celebrity appeal makes for exceptional
advertising
• It pays to keep up with emerging trends in the
market
Coca-Cola’s Lesson’s Learned
• Pay specific attention to deals made with the
government
• Establish a good business relationship with the
government
• Investment in quality products
• Advertising is crucial
• SWOT ANALYSIS :
•  
•  
•  
• STRENGTH
•  
•  
– MULTY NATIONAL COMPANY
– STRONG MARKETING STRATEGY
– 2 IN 1 BENEFIT
•  
•  
•  
• 2. WEAKNESS
•  
– NON-AVAILABILTY OF PRODUCTS.
– SLOW AFTER SALE SERVICES.
– POOR DISTRIBUTION OF THE SCHEMES.
– PROMISES ARE NOT FULFILED
• 3.OPPORTUNITY
•  
•  
• GOOD BRAND AWARENESS IN INDIA
• IT CAN ATTRACT THE MORE CONSUMERES BECAUSE THIS IS THE ONLY ONE COLD DRINK
IN THE MARKET, WHICH HAS TWO FLAVORS IN ONE BOTTLE.
• SUMMER SEASON IS ITSELF A GREAT OPPORTUNITY FOR NEW MIRINDA LEMON TO
INHANCE THE MARKET.
•  
•  
•  
• 4.THREATS
•  
• STRONG COMPETITOR
• EXISTING FLAVORS
• S. T. P. ANALYSIS
•  
• SEGMENTATION:
•  
• The company segments its product according to geographical means. Cold drink was segmentation in Delhi (NCR) Pepsi aims at
expending their how in all parts in India.
•  
•  
• TARGET:
• Basic aim of the company is to launch the flavored cold drink and attract all generation in urban as well as rural areas.
•  
• Child and teenager generation will be lured to the product on the basis of flavor and features.
•  
• POSITIONING:
•  
• The mission of the Pepsi is towards reaching to the last consumer and leaving name in thier minds.
•
• The company emphasis on few areas:
• Easy availability and reliability with zero resistance for the product to reach the customer.
• Price is the consideration with offer and easy finance scheme.
• Trading of proper marketing excellence for increasing the company sale.
SWOT ANALYSIS.
 This SWOT analysis also shows PepsiCo's internal strengths such as their
experienced management team, a competitive product line, a global marketing realm,
and the continuous efforts by their research and development to research trends in
the industry and to be creative in exploiting those trends.

 A few weaknesses lie in the fact that the company is so large and could possibly lose
focus or have internal conflict problems.

 Some possible opportunities noted in the SWOT analysis are the growing markets for
specialized ethnic foods and healthier food products. Another opportunity is that the
income of consumers is high enabling them to be less price sensitive, and
convenience is becoming evermore important not only to the United States but to
many countries around the world.

 A few of the threats PepsiCo must stay aware of are the ease of reliability of its
product line, the almost pure competition in pricing for its products, and the quickness
of technological advances causing existing products to be no longer the most
advanced.

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