product assortment- case study pepsi

PRODUCT ASSORTMENT

PEPSICO. LTD

Submitted By;

Koyel Chakraborty 12

Rakshit Patel 23

Ravi Sharma 24

Tathagat Mahajan 31

INTRODUCTION

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

PepsiCo, is a Fortune 500, American global corporation headquartered in Harrison, New York, with interests in the manufacturing, marketing and distribution of grain-based snack foods, beverages, and other products.

19 of PepsiCo's product lines generated retail sales of more than $1 billion each, 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 & beverage business in the world.

PRODUCT ASSORTMENT WIDTH----------Water drinks

CSD Energy drinks

Soft drinks

Sports drinks

Juice drinks

Snacks

Aquafina Mug Bear AMP Energy

Pepsi Gatorade Dole juice Lays

Ethos water

Tava No Fear 7 up Thirst quencher

Ocean spray

Kurkure

Profel Sobe essential energy

Mirinda G2 Tropicana juice

Cheetos

Fitness Water

Mountain dew

Slice Doritos

Sobe Life Water

Diet Pepsi Munchies

Pepsi Blue

Crystal Pepsi

PRODUCT CUSTOMERS INFLUENCER

CARBONATED DRINKS YOUTH’S CELEBRITES, PACKAGING, BRAND LOYALTY , ADS

SNACKS CHILDRENS & YOUTHS FLAVOURS, TASTE & RECREATIONAL TIMES

JUICE DRINK ALL AVAILABILITY, BRAND LOYALTY ,TASTE

PACKED WATER EXECUTIVES,MEDIUM &HIGH CLASS & TRAVELLERS

HEALTH ISSUES, BRAND

ENERGY DRINKS SPORTSMEN ICONS, NUTRITION , ENERGY &COMPETITORS

CUSTOMER & IT’S INFLUENCER OF PEPSICO

FIVE PRODUCT LEVELS

•Each additional layer adds cost•Augmented benefits could become Expected benefits•Augmentation could lead basic benefit segments vacant•Applicable to most, if not all, products

Core benefit - Thirst & refreshment

Analyzing the Five Product Levels – PEPSI

Basic Product – carbonated drink & taste

Expected product – hygien, safe consumption, nutritious & quality

Augmented product – easy to open & more variety(flavors)

Potential product – gifts, price discount & offers

PRODUCT LINE LENGTH MANAGEMENT

1. Line stretching Upward-Pepsi, Frito Lay, Pepsi max, Pepsi

Lite Downward- Chesters, Twister Two Way- King Vitamin & Spuds(north

&South)

2. Line filling (each item should produce a just noticeable difference)

7up, Mirinda, Tropicana, Slice, Mountain dew,

Quake

3.Line modernization My can, Tin(beverage), Naked juice, Meat

sticks (Frito lay)4.Line Pruning All Sport, Crystal Pepsi, Pepsi blue, Pepsi

edge, storm, KFC, Pizza hut, Mr. green, Matika

OPTIONS FOR GROWTH

Increase Market Share

Introduce New Products

Move into New Markets

Diversify into non-beverage markets.

OPTIONS FOR GROWTH

Market

Grow

th

Market Share

Increase Market Share

OPTIONS FOR GROWTH

New Products

Old Products

Old Markets New Markets

Introduce New Products

Move into New Markets

Diversify

ADVERTISEMENTS

DIVERSIFICATION

• Pepsi has no other option than to diversify into non-beverage markets.

• Diversify into products that complement Pepsi’s beverage offerings.

• Diversification will create secondary business units that can help Pepsi to increase revenues.

• Opportunities to enter markets not dominated by a few big companies.

ICE CREAM

DAIRY PRODUCTS

COFFEE & TEA ETHNIC FOOD

CONDIMENTS GOURMET

CONFECTIONARIES

HOTEL / RESTAURANTS

OTHERS….

• Frozen food • Nutraceuticals• Ready to eat • Spices & seasonings• Snacks foods• Low crab

BRAND ISSUES

PESTICIDE RESIDUES ISSUE

5 August report of the Centre for Science and Environment, New Delhi. A CSE test found 12 soft-drink brands of Coke and its global rival Pepsi contained pesticides and insecticides in excess of the European Economic Commission’s limit. The Parliament’s immediate reaction: ban on the brands on its premises.

POLLUTION

On 6 August, Kerala State Pollution control Board had confirmed that pepsi’s bottling plant had indeed been polluting the groundwater and agricultural land in and around its Palakkad plant.

DEPLETION OF GROUNDWATER LEVEL

Pepsi removing 1.5 million of water daily, for its products like soft drinks, mineral water , etc. through its deep wells.This creats problem of depletion of ground water level in Kerala, Maharashtra, West Bengal.

CONTRACT FARMING ISSUE IN KARNATAKA

In contract farming in karnataka region Pepsico provided seeds to farmer,then after the attack of late blight the quality of potato get reduced so pepsico didn’t purchased such potato this leads some imbalances between farmer and company.

THANK YOU

CHEER’S