A Project

Work on

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TABLE OF CONTENTS

SR.NO CONTENTS PAGE NO.

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1 INTRODUCTION 3

2 PRODUCTS 5

3 COMPETITIVE

STRATEGIES

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4 SWOT ANALYSIS 20

5 MARKETING MIX 21

6 CONCLUSION 25

INTRODUCTION

PepsiCo

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PepsiCo Inc. is an American multinational food and beverage corporation headquartered

in Purchase, New York, United States, with interests in the manufacturing, marketing and

distribution of grain-based snack foods, beverages, and other products. PepsiCo was formed

in 1965 with the merger of the Pepsi-Cola Company and Frito-Lay, Inc. PepsiCo has since

expanded from its namesake product Pepsi to a broader range of food and beverage brands,

the largest of which includes an acquisition of Tropicana in 1998 and a merger with Quaker

Oats in 2001—which added the Gatorade brand to its portfolio.

PepsiCo's brands generated retail sales of more than $1 billion apiece,and the company's

products were distributed across more than 200 countries, resulting in annual net revenues of

$43.3 billion. Based on net revenue, PepsiCo is the second largest food and beverage

business in the world. Within North America, PepsiCo is ranked (by net revenue) as the

largest food and beverage business.

Indra Krishnamurthy Nooyi has been the chief executive of PepsiCo since 2006, and the

company employed approximately 274,000 people worldwide as of 2013. The company's

beverage distribution and bottling is conducted by PepsiCo as well as by licensed bottlers in

certain regions.

PepsiCo Americas Beverages (PAB) makes, markets, sells and distributes beverage

concentrates, fountain syrups and finished goods under various beverage brands. Through

strategic acquisitions, partnerships and new product development, PAB has expanded its

beverage lineup over the past 20 years to offer top-selling choices for every occasion and

lifestyle. As a result, Pepsi-Cola today is the flagship brand in a portfolio of liquid

refreshment beverages that includes 14 billion-dollar brands and spans carbonated soft drinks,

juices and juice drinks, ready-to-drink teas and coffees, sports drinks and bottled waters.

Its brands include Pepsi-Cola, Mountain Dew, Gatorade, Sierra Mist, Aquafina, Tropicana

Pure Premium, AMP Energy, Propel, Mug, SoBe, IZZE and Naked Juice. PAB also

distributes and sells in the United States a leading portfolio of ready-to-drink teas and coffees

through strategic joint ventures with Unilever and Starbucks, with brands that include Lipton

Iced Tea, Pure Leaf and Brisk, Tazo Iced Tea, Starbucks Frappuccino, Starbucks Iced Coffee,

Seattle's Best Iced Lattes and Starbucks Refreshers. In 2012, PepsiCo announced that

Starbuck's ready-to-drink beverages and Lipton Brisk had grown to more than $1 billion in

estimated annual retail sales, expanding PepsiCo's portfolio of billion-dollar brands.

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PAB offers reduced-calorie options for virtually every drink it makes and for every occasion.

Today, nearly half of PAB sales volume in the United States comes from no- or low-calorie

beverages, healthy juices, and active hydration beverages.

PRODUCTS OF PEPSICO

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Pepsi-Cola

Pepsi-Cola was created in 1898 by Caleb Bradham, a New Bern, North Carolina pharmacist

who formulated the drink as a refreshing and energizing tonic. Today, it is one of the world's

most iconic and recognized consumer brands globally.

Gatorade: Acquired in 2001

In 2001, Gatorade, one of the world's leading sport's drinks, was acquired by PepsiCo.

Created by researchers at the University of Florida for the school's football team, "the

Gators,"" the drink is backed by 45 years of science.

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Mountain Dew: Acquired in 1964

Mountain Dew was invented by an independent soft drink bottler in the 1940s and was

purchased by Pepsi-Cola in 1964. Today, Mountain Dew is the #1 flavored carbonated soft

drink in the United States. With its one-of-a-kind citrus taste, Mountain Dew exhilarates and

quenches with every sip. In addition to original Mountain Dew and Diet Mountain Dew, the

DEW product line includes Mountain Dew Code Red, Mountain Dew LiveWire, Mountain

Dew Throwback, Mountain Dew Voltage, Mountain Dew White Out and Mountain Dew

Kickstart.

Pepsi-Lipton Partnership

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In 1991 PepsiCo entered into The Pepsi Lipton Tea partnership, a joint venture with Unilever

that manufactures, markets and sells ready-to-drink iced teas in the United States. The

partnership includes a complete portfolio of iced teas for every occasion, including Lipton

Iced Tea, Pure Leaf Iced Tea and Brisk Iced Tea.

North American Coffee Partnership

Founded in 1994, the North American Coffee Partnership is a joint venture between Pepsi-

Cola North America and a subsidiary of Starbucks Coffee Company. The partnership

manufactures, markets and sells ready-to-drink coffee products, including Frappuccino,

Starbucks Doubleshot, Doubleshot Energy + Coffee and Starbucks Refreshers.

Tropicana: Acquired in 1998

In 1947, Anthony Rossi started a local fruit packaging business called Tropicana. Seven years

later, Rossi pioneered a revolutionary pasteurization process for orange juice. For the first

time, consumers could enjoy the fresh taste of pure, not-from-concentrate, 100% Florida

orange juice in a ready-to-serve package. The juice, Tropicana Pure Premium, became the

company's flagship product. PepsiCo acquired Tropicana and the Dole juice business in 1998.

PepsiCo Americas Foods

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PepsiCo Americas Foods is the provider of many of the most popular food and snacks

throughout North and Latin America. Its portfolio of businesses includes Frito-Lay North

America, Quaker Foods North America, and all of our Latin American food and snack

businesses.

Frito-Lay North America

In 1932, C.E. Doolin entered a small San Antonio cafe and purchased a bag of corn chips.

Little did he dream this savory chip would become one of the nation's most popular snacks.

Mr. Doolin learned the corn chips manufacturer was eager to sell his small business, so Mr.

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Doolin purchased the recipe, began making FRITOS® corn chips in his mother's kitchen and

sold them from his Model T Ford.

Meanwhile, that same year, Herman W. Lay began his potato chip business in Nashville by

delivering snack foods. Not long after, Mr. Lay purchased the manufacturer, and formed the

H.W. Lay & Company. H.W. Lay & Company became one of the largest snack food

companies in the Southeast, and today, LAY'S® potato chips is America's favorite potato

chip brand.

Years later, in 1961, the Frito Company and the H.W. Lay Company merged to become

Frito-Lay, Inc. Today, Frito-Lay North America makes some of the most popular snacks in

the United States, including LAY'S® and RUFFLES® potato chips and dips, DORITOS®

tortilla chips, TOSTITOS® tortilla chips and dips, CHEETOS® cheese flavored snacks,

FRITOS® corn chips and dips, ROLD GOLD® pretzels, SUNCHIPS® multigrain snacks,

and CRACKER JACK® candy coated popcorn.

Gamesa

Gamesa is a global leader in the cookies market and from Mexico it exports its products to

more than 16 countries. Gamesa offers consumers a wide variety of high-quality products for

every lifestyle, producing pastries, oats, cereals and other related products. Among its most

successful brands are Marias Gamesa, Emperador, Arcoiris, Mamut, Chokis and Maizoro.

Headquartered in Monterrey, Mexico, it has nine production facilities across Mexico. It was

acquired by PepsiCo in 1990.

Quaker Foods North America

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For more than 135 years, Quaker has provided consumers with innovative products that fit

their ever-changing daily lifestyles. It all began on September 1877, when Henry D. Seymour

and William Heston, founders of the Quaker Mill Company, registered with the U.S. Patent

Office the first breakfast cereal trademark, "a figure of a man in 'Quaker garb.'"

In 1881, Henry Parsons Crowell bought the bankrupt Quaker Mill Company as well as the

brand name Quaker. The next year he launched the first national magazine advertising

program for a breakfast cereal. In 1888, several of the largest oat millers merged and

established the American Cereal Company. And in 1901, the American Cereal Company

changed its name to The Quaker Oats Company.

The iconic Quaker Oats round packaging first appeared in 1915 and Quaker Quick Oats, one

of America's first convenience products, was introduced in 1922. The first major acquisition

of the company was Aunt Jemima Mills Company in 1926, which is today one of the leading

manufacturers of pancake mixes and syrup. Gatorade was later acquired in 1983 and the

Golden Grain Company, producers of Rice-A-Roni, in 1986.

PepsiCo merged with The Quaker Oats Company in 2001.

Today, Quaker Foods North America makes, markets, sells and distributes products spanning

several categories such as hot and ready-to-eat cereals, rice, pasta and other branded products.

Some of its best known and beloved brands include Quaker oatmeal, Quaker Chewy granola

bars, Life cereal, and Rice-A-Roni and Pasta Roni.

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Sabritas

Sabritas is the most loved snack brand in Mexico. Founded in 1943, it is renowned for the

quality, variety and flavors of its products, and serves as the umbrella brand under which

PepsiCo markets Frito-Lay products in Mexico. Sabritas is also the name brand for its own

line of potato chips, and manufactures and markets several local brands such as Doritos,

Cheetos, Tostitos, Fritos, Crujitos, Poffets, Rancheritos and Sabritones. Sabritas is

headquartered in Mexico City and has ten production plants. PepsiCo acquired Sabritas in

1966.

Latin Americas Foods

The Latin Americas Foods business, either independently or in conjunction with third-party

partners, makes, markets, sells and distributes a number of snack food brands, including

Marias Gamesa, Cheetos, Doritos, Ruffles, Emperador, Saladitas, Elma Chips, Rosquinhas

Mabel, Sabritas and Tostitos, as well as many Quaker-branded cereals and snacks. These

branded products are sold to independent distributors and retailers.

PepsiCo Europe includes all beverage, food and snack businesses in Europe and South

Africa. Either independently or in conjunction with third-party partners, PepsiCo Europe

makes, markets, sells and distributes some of the most respected household brands, including

Lay's, Walkers, Doritos, Cheetos and Ruffles, many Quaker-branded cereals and snacks,

beverage concentrates, fountain syrups and finished goods under various beverage brands,

including Pepsi, Pepsi Max, 7UP, Diet Pepsi and Tropicana. These branded products are sold

to authorized bottlers, independent distributors and retailers. In certain markets, PepsiCo

Europe operates its own bottling plants and distribution facilities. PepsiCo Europe also, either

independently or in conjunction with third-party partners, makes, markets and sells ready-to-

drink tea products through an international joint venture with Unilever (under the Lipton

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brand name), and sells and distributes a number of leading dairy products, including Domik v

Derevne, Chudo and Agusha.

Milestones

Wimm-Bill-Dann: Acquired in 2011

In 2011 acquisition of Wimm-Bill-Dann, Russia's leading branded food-and-beverage

company, made PepsiCo the #1 food and beverage business in Russia.

Marbo: New Line 2010

In 2010, the PepsiCo brand Marbo opened a potato chip production line at its plant in Backi

Maglic, Serbia, bringing state-of-the art technology, as well as 100 new jobs to the local

community.

New Investments: 2010

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Also in 2010, PepsiCo announced significant investments at its Polish plants, Grodzisk

Mazowiecki and Tomaszow Mazowiecki, as well as the creation of new jobs at the

Tomaszow plant.

R&D Innovation: 2011

In 2011, PepsiCo opened a fruit and vegetable research and development innovation center in

Hamburg, Germany.

PepsiCo Asia, Middle East & Africa

PepsiCo Asia, Middle East and Africa (AMEA), includes all beverage, food and snack

businesses in Asia, the Middle East and Africa, excluding South Africa. Either independently

or in conjunction with third-party partners, PepsiCo AMEA makes, markets, sells and

distributes a number of iconic PepsiCo brands, including Lay's, Chipsy, Kurkure, Doritos,

Cheetos and Smith's, many Quaker-branded cereals and snacks, beverage concentrates,

fountain syrups and finished goods under various beverage brands, including Pepsi, Mirinda,

7UP, Mountain Dew, Aquafina and Tropicana. These branded products are sold to authorized

bottlers, independent distributors and retailers. In certain markets, PepsiCo AMEA operates

its own bottling plants and distribution facilities. PepsiCo AMEA also, either independently

or in conjunction with third-party partners, makes, markets and sells ready-to-drink tea

products through an international joint venture with Unilever (under the Lipton brand name)

and licenses co-branded juice products to third-party partners through a strategic alliance with

Tingyi under the House of Tropicana brand name.

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Acquisitions and divestments

Between the late-1970s and the mid-1990s, PepsiCo expanded via acquisition of businesses

outside of its core focus of packaged food and beverage brands; however it exited these non-

core business lines largely in 1997, selling some, and spinning off others into a new company

named Tricon Global Restaurants, which later became known as Yum! Brand, Inc. PepsiCo

also previously owned several other brands that it later sold so it could focus on its primary

snack food and beverage lines, according to investment analysts reporting on the divestments

in 1997. Brands formerly owned by PepsiCo include: Pizza Hut, Taco Bell, KFC, Hot 'n

Now, East Side Mario's, D'Angelo Sandwich Shops, Chevys Fresh Mex, California Pizza

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Kitchen, Stolichnaya (via licensed agreement), Wilson Sporting Goods and North American

Van Lines.

The divestments concluding in 1997 were followed by multiple large-scale acquisitions, as

PepsiCo began to extend its operations beyond soft drinks and snack foods into other lines of

foods and beverages. PepsiCo purchased the orange juice company Tropicana Products in

1998 and merged with Quaker Oats Company in 2001, adding with it the Gatorade sports

drink line and other Quaker Oats brands such as Chewy Granola Bars and Aunt Jemima,

among others.

In August 2009, PepsiCo made a $7 billion offer to acquire the two largest bottlers of its

products in North America: Pepsi Bottling Group and PepsiAmericas. In 2010 this

acquisition was completed, resulting in the formation of a new wholly owned subsidiary of

PepsiCo, Pepsi Beverages Company. In February 2011, the company made its largest

international acquisition by purchasing a two-thirds (majority) stake in Wimm-Bill-Dann

Foods, a Russian food company that produces milk, yogurt, fruit juices, and dairy

products. When it acquired the remaining 23% stake of Wimm-Bill-Dann Foods in October

2011, PepsiCo became the largest food and beverage company in Russia.

In July 2012, PepsiCo announced a joint venture with the Theo Muller Group which was

named Muller Quaker Dairy. This marked PepsiCo's first entry into the dairy space in the US.

DIFFERNET COMPETITIVE STRATEGIES

Following are the different competitive strategies which were used by Pepsico

for promoting and sustaining their products in the market for a longer period.

A. Marketing Strategy for PepsiCo

1. Price and advertising strategy

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PepsiCo Overhauls Strategy PepsiCo overhauls strategy is part of its advertising strategy.

PepsiCo Company plans to save $1.5 billion in the next three years. The company plans on

ramping up its advertisements, cutting on thousands of its work force and ensuring a bigger

than the expected decline in it’s near term earnings.

The funds saved by the company will help the company to step up its spending on brand

advertisement. The saved amounts will offset the high and increased amount spend on

marketing and advertisement (PepsiCo Strategy, 2013). This move is expected to increase the

cost-competitiveness of the company and to provide the company with funds for innovative

initiatives and for brand building which will then lead to an increase in the sales obtained

from the North American market.

PepsiCo has been shaping its pricing strategies in ways which will suit the soft drink global

market. The pricing strategy of PepsiCo is to reduce the price of its products during holy

months like Ramadan and Eid. This serves as a promotional price strategy for the company.

Pepsi has also adopted segmented pricing strategy making the price of its products be higher

in luxurious hotels and other executive sectors (PepsiCo Employment Strategy, 2013).

The pricing strategy adopted by the company is quite helpful in helping the company to

compete with its largest competitor, Coca-Cola. As part of its price strategy, PepsiCo

operates its sales through psychological and promotional pricing strategy (PepsiCo Jobs

Strategy, 2013).  The company has also been using price discounts which are aimed at

attracting more customers into purchasing the company products.

Tactics that support PepsiCo strategies

To save the target amount, PepsiCo plans on cutting its work force by 8,700 jobs or about a

3% of its current work force. The job loss will be affected in 30 countries. The money which

would have been used for salaries and wages will instead be channeled to brand

advertisements. 

The strategy will focus on 12 brands which includes Pepsi-Cola, Tropicana, Doritos,

Gatorade and 7-Up among many other brands. Price cuts are the tactics which PepsiCo has

adopted to enhance its pricing strategies. For example, it reduces the prices of its brands

during certain seasons after which the price increases (PepsiCo Strategy, 2013).

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2. International strategy

PepsiCo’s international activities in Saudi Arabia, China, Mexico, India and Eastern Europe

account for more than half of the company revenue and its operating profit. As a result, the

company has been increasing its global advertisements all over the 190 countries in which it

runs its businesses.

The global advertisement is an international strategy used by the company to create brand

awareness. The company has recognized the need to have a careful integration of high

standards in its various supply chains and more so at the retail level across the world as a

strategy of increasing its competitive advantage (PepsiCo Strategy, 2013).

The company also strives to ensure excellence and specifically for the brands or products

together with the packaging, advertising and marketing as a way of ensuring customer loyalty

and brand loyalty. The rational behind this company strategy is to ensure that all customer get

high quality products and this is because quality controls are highly realized in the process of

bottling, packaging and from the warehouses to the shelves.

As part of its international strategy, PepsiCo markets its products using the localization

process where the local bottlers in the subsequent countries determine which products to pact

in order to sell in their locality. The strategy behind this is to ensure that its products are

produced in the country where they will be consumed.

PepsiCo balances its communication and promotions through 

celebrity

 endorsers, newspapers, sponsorships and internet. With this the company is assured of

customer awareness in the global market (PepsiCo Business Strategy, 2013). The company

also promotes it products and brand through supermarkets across the world by giving

fantastic prizes and discounts to attract the attention of the buyers.

PepsiCo has also adopted a new international strategy as a way of getting ahead of its main

rival Coca-Cola Company.  The company has been in the recent past partnered with its

customers through TV networks across the globe like the NBC and also strategically places

its commercials in order to closely relate to its audiences.

International expansion has been the main international strategy for Pepsi Company in its bid

to beating its rivals (PepsiCo Corporate Strategy, 2013). Another international strategy

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adopted by PepsiCo is its brand flexibility where the company tailors its brands to local

cultures and tastes. All the international strategies adopted by PepsiCo are aimed at

increasing its global operations and global growth. PepsiCo Strategy: Marketing,

International, Competitive, Jobs 2013

B. PepsiCo’s competitive strategy

1. Cola warsCola wars started back in the 1980 and describe the marketing and advertising

tactics which have pitted the Coca-Cola Company against PepsiCo (PepsiCo Cola

Employment Strategy, 2013). Even to date, the two soft drink companies continue to battle

for the international and the 

national

 stages in food service and in retail.

Cola wars have made PepsiCo adopt complex and sophisticated advertising and promotions

in order to defeat the Coca-Cola Company. The competitive strategy adopted by PepsiCo as a

result of cola wars is the production of healthy drinks. The consumption of carbonated drinks

in USA has declined steadily in the past decade due to health concerns in the country where

obesity has been a health issue.

As a result, PepsiCo has had to devise a new competitive strategy of making a variety of

beverages in order to sell the US market. For example, the company has focused on the

production of water juices, sport drinks and teas as a way of targeting US and similar

markets.As part of its complex and sophisticated advertising and promotions tools, the

company has hired a Global Nutrition Group as its marketing tool.

The nutritionists were to direct the company efforts to reduce sodium, sugar and fat in its

products. The nutritionists were also to develop a campaign to create an awareness to

consumers on the healthier foods produced by the company. To do this, the nutritionists were

required to analyze the sugar, fat and sodium content in each of the products or the drinks and

explain to the consumers whether those percentages had any health impact (PepsiCo Strategy,

2013).

Cola wars have made PepsiCo diversify its business operations and to increase its reliance on

other brands like Tropicana, Frito Lay and Quaker in order to increase its sales revenue. The

company has adopted the complex and sophisticated advertising and promotions as a way of

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competing for a market share with Coca-Cola. These complex and sophisticated advertising

and promotions are mainly to ensure uniqueness in its marketing and differentiate its brands

from those of its competitors.

PEPSICO SWOT Analysis:

Pepsico SWOT:

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SWOT analysis is one of the most popular strategic analytical methods that helps to generate

categorise information about strengths, weaknesses, opportunities, and threats for businesses

to be used in strategic decision-making. PepsiCo SWOT analysis is presented on the table

below:

Marketing Mix of Pepsi

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The second largest soft drink player in the world, Pepsi has implemented several smart

strategies in the last decade to improve its turnover and profits. Pepsico’s expansion in snacks

like Lays, Quaker oats, Cheetos and Kurkure have given them an edge over Coca cola.

Although Coca cola is still the number one selling brand, Pepsi has reduced their dependency

on Soft drinks by expanding their product mix.

We are discussing the marketing mix of Pepsi. We know that the marketing mix is a dynamic

process and is always changing with respect to price and promotions. Thus, kudos to Pepsi,

which has always kept changing their marketing mix with the changing environment. Here is

the Pepsi marketing mix or the 4P’s of Pepsi.

Product in the marketing mix of Pepsi –

There are 2 main product types in which Pepsi is present in India.

Beverages

Soft drinks – 7up,  Duke’s, Mirinda, Mountain dew, Nimbooz, Pepsi, Slice, Tropicana,

Mineral/ Bottled water– Aquafina

Sports Drink – Gatorade

Food Products

Snacks – Cheetos, Kurkure, Lays, Lehar,  Uncle chipps

Breakfast – Quaker oats

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Thus, Pepsi, unlike its major competitor Coca cola, has expanded in the breakfast as well as

snacks segment. Coca cola on the other hand is present only in the beverages section. The

advantage of Pepsi’s snacks segment is that brands like Lays, Kurkure and Cheetos are in

great demand. Quaker oats which is a recent addition is also increasing in demand. Thus the

turnover resulting from the Food products is helping the bottom line of the company.

Price in the marketing mix of Pepsi – Pepsi is in an industry which is dominated by

the two biggies – Coca cola and Pepsi. Thus the pricing of Pepsi is competitive. In a war

between Coca cola and pepsi, neither of the brands can win if they enter a price war. This is

because the cost of manufacturing and transportation is huge. Thus, these companies are

likely to enter a brand war rather than enter a price war.

Pepsi is known to give promotional discounts as well as discounts on bulk buying. For

customers, as the container size rises, the discounts also rise. Thus a 2 litre bottle of Pepsi

will be relatively cheaper per 100ml as compared to a 250 ml pack. For distributors, the

discount is based on the quantity as well as the payment terms. The better the payment terms

or the higher the quantity, the more is the discount given thereby keeping the distributor

motivated.

However, Pepsi has to lower its price for the top retailers and bulk buyers. For example –

Indian retailers like Big Bazaar, Reliance fresh, as well as hypercity are bulk buyers.

Similarly fast food chains like Mc donalds , KFC are also bulk buyers. These bulk buyers

negotiate with the soft drink brands on the basis of price and sell their products in huge

quantities. Thus, pepsi has to drop prices in these places which affects the operating margin

of the brand. The margins of the company are better through the distributors and lesser

through bulk buyers. However, the sales of the company are higher to bulk buyers as

compared to distributors.

Place in the marketing mix of Pepsi – Pepsi has a huge distribution network in India.

It has to be huge because the brand needs to be present in every nook and corner of the

country to increase its sales. The primary mode of distribution is through distributors who in

turn give it to retailers, restaurants, and convenience stores. The secondary mode of

distribution is directly through the company to bulk buyers and major retailers who buy

directly from the company.

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Thus distribution channel is as follows

1) Company > Distributor > Small retailers / Small buyers > End customer

2) Company > Bulk buyers > End customer

As cost is saved in the 2nd example, companies are able to give better margins to Bulk

buyers. The major challenge in distribution is the cost of bottling as well as the cost of

transportation.

Bottling of Pepsi is done at bottling plants. In India, Pepsi has 36 bottling plants out of which

13 are franchisees whereas 23 are company owned. The soft drink once packed is moved to

the company warehouse from where it goes to distributors and bulk buyers.

Several of pepsi’s soft drink distributors themselves might act as distributors of Kurkure,

Lays and other snacks products as the distribution is through the same channel. The products

are also sold from the same convenience store. Thus, it makes sense if the distributor of the

soft drink is given the authority to distribute snacks as well. However, in some cases, the

distributor of soft drink might be separate from that of Snacks.

Promotions in the marketing mix of Pepsi.

One of the strongest reason Pepsi retains its brand image is its promotions. Pepsi targets

mainly youngsters through various Brand ambassadors. In India, the brand ambassadors have

been the best celebrities as well as sports person of the country including Sachin tendulkar, M

S Dhoni, Amitabh Bacchan, Ranbir kapoor and others.

Mountain dew has a message of “Darr ke age jeet hai” which is again focused on adventure

sports thereby targeting youngsters. Snacks like Kurkure and Lays target different segments.

Kurkure is known to target household snacks and middle aged group whereas Lays targets

youngsters and the party mood. Gatorade targets only sports as it is a sports drink. And

Quaker oats, which is a recent launch as compared to the other products, targets breakfast

with a bit of masala.

Pepsi uses all the media channels for its promotions. Along with ATL, pepsi is also present in

BTL marketing. Furthermore, along with traditional media channels, Pepsi also uses trade

promotions and sales promotions at point of purchase. Discounts and packaging are always

being bundled to give the best combination and value to the customer to increase purchases

as well as the brand equity.

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The bottomline is that Pepsi cannot exist without the proper promotions. This is because

Pepsi belongs in the FMCG market, and in FMCG, you either perform or perish. The FMCG

market is one of the toughest market for businesses. However, Pepsi is not only surviving, but

it is thriving in the FMCG market. Thus, hoping that Pepsi keeps re inventing its marketing

mix so that it remains in the top 2 category of soft drinks.

CONCLUSION

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From the above project we conclude that Pepsico has adopted one of the finest competitive

strategies. Pepsico plays an important role in Marketing Mix, Product Differentiation as well

as low cost leadership. Its strategies are the main which can compete and because of its

strategy Pepsi is competing with Coco cola. Through various competitive strategies Pepsico

has entered in to different segments.

Also we can conclude that how Pepsico penetrates in to different markets and how its

distribution channels plays an important role in distributing its products worldwide.

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