Case Analysis on Pepsi's Entry to India

“A STUDY ON ACCEPTABLITY OF PEPSI BEVERAGE AND CONSUMER EXPECTATION TOWARDS PEPSI PRODUCT IN BHATKAL TOWN”

1. The political environment in India has proven to be critical to company performance for both PepsiCo and Coca- Cola India. What specific aspects of the political environment have played key roles? Could these effects have been anticipated prior to market entry? If not, could developments in the political arena have been handled better by each company?

Over the years, Pepsi failed to meet the majority of the promises, the national government faced a financial crisis being unable to fund itself, India’s northern territories were at war with militant uprisings, and India’s ever-expanding population is wavering on the fence of public opinion of both Pepsi’s place in India and the confidence of the new political party of Janata Dal.

In addition, PepsiCo International division includes all the PepsiCo snacks, beverages, and food items sold outside North America. They are doing extremely well in emerging markets such as Russia, the Middle East, and Turkey. As for Chile, the sales are a little lousy. They find that the Power of One strategy works there since Frito-Lay has 90 percent of the market. Again, the Power of One strategy is simply placing PepsiCo products next to Frito-Lay products.

3. If Coca-Cola wants to obtain more of India’s soft drink market, what changes does it need to make?

Consequently, Carbonated drinks have viewed negatively by politicians, media, and legal agencies in the world. This drink causes negative affects to human such as obesity, diabetes, heart problems, and other negative affects to human critically. In order to generate its sales, Pepsi utilizes different sources to distribute its product. Restaurant’s chain, supply chains, and vending partners are the three essential components to support Pepsi business operations and distribution effectively. Media, TV, and radio ads are the great source to let consumers know about its products as well. Major sports tournament such as Supper bowl competitions, World Cup tournament, and Olympics allow Pepsi to introduce its products to sport fans and viewers effectively.

Coca Cola and PepsiCo, Inc are both universally recognized companies. Introducing these companies is not a necessity as everybody in the world knows about them and their products. These companies have been producing soft drinks, drinking water and flavored waters for centuries and have been competing in the same market for ages. We have come to know about this rivalry as “Cola War” which has its own celebrated history. In this market, there are many players, some are regional companies and some are multinational companies but main competitor of PepsiCo, Inc is Coca Cola and vice versa. The operations of the companies are beyond the national boundaries. Coca Cola and PepsiCo, Inc targets all income segments of customers in the entire world

Pepsi, Frito-Lay, Quaker, Tropicana, and Gatorade are all well-known brands, but did you know that they are all part of PepsiCo? A framework made up of an astonishing 360 combined years’ worth of production. “PepsiCo is one of the world’s leading food and beverage companies with over $63 billion in net revenue in 2015 and a global portfolio of diverse and beloved brands” (1). They are known for their strength in diversified product portfolio, dominance in their market position, and their state of the art focus on research and development. The opportunities they have to face are a growing consumer focus on health and wellness, increase in global food consumption, and productivity initiatives (2). In the following sections, the history, present conditions, mission and objectives, factors within the external environment will be discussed.

As it is familiar to us, Pepsi is one amongst the most predominantly popular aerated soft drink produced in North America and is circulated globally. The name of this drink was consequently altered to Pepsi Cola in 1898 after the root of the word "dyspepsia" and the kola nuts used in the recipe. Due to its ever-increasing and rising fame and from the income it accrued, the company decided to manufacture it on a larger scale and pushed the drink from his medical store to his recently bought depot where only Pepsi was exclusively manufactured. This paper is about the numerous challenges faced by PepsiCo Pvt in India (writers, n.d.)

PepsiCo is sold in more than 200 countries, where in some of those countries Pepsi is the number one food and beverage company, such as the United States, Canada, and Saudi Arabia. The growing middle class people globally makes the demand of high quality products such as PepsiCo increases. The American food and beverage company has been established in China for more than thirty years and the products are even one of the most popular product of its kind, such as Lay’s (Nooyi, 2012). In addition, PepsiCo’s market share in the US outweighs the competitors as shown on Figure 1 below. This proves that PepsiCo’s presence globally is really strong.

Pepsi have an aggressive international advertising strategy in which they have taken many celebrities as a brand ambassador to create strong brand association.

1.) Why do companies like Pepsi need to globalize? What are the various ways in which foreign companies can enter a foreign market? What hurdles and problems did Pepsi Face when it tried to enter India during the 1980s?

From all the above discussion it is concluded that PepsiCo. Should go for market penetration that is to increase its market share through tie up with different restaurants & clubs as well as continue or go with its already adopted strategies such as increase its share through huge advertisement and through sponsoring different events such as PepsiCo. Continuously sponsoring cricket matches at national and international level. From above the score of both strategies are very close to each other so PepsiCo. May also take both of strategies as well.

PepsiCo International markets and sells the North American product brands abroad, and in additional markets and sells the Mirinda, Walkers, Sabritas, Gamesa, etc. and several others in multiple countries (over 200). Each of these subsets of brands are developments of unique products tailored to each geographical culture it is marketed to.

The study is delimited or confined only to Hawassa millennium Pepsi cola factory from which the necessary data is collected & the study is conducted. The study will be conducted only to see the marketing mix elements impacts on sales positively or negatively.