Pepsi - Market Study

7/24/2019 Pepsi - Market Study

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MARKETING MANAGEMENT PROJECTREPORT

PEPSICO CARBONATES

CONTENTS

1. PEPSICO PRODUCTS & COMPETITORS IN THE SEGMENT (P. No. 02-06)

2. CONSUMER PROFILE (P. No. 06-08)

3. CONSUMER BEHAIOR (P. No. 08-12)

!. E"TERNAL ENIRONMENT IMPACT ANAL#SIS

$. MAR%ETING MI" OF PEPSI

INDIAN INSTITUTE OF MANAGEMENT RAIPUR

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PEPSICO INDIA

INDUSTR# DIISION

MA'OR PLA#ERS IN DIFFERENT CATEGORIES

SOFT DRIN%S

Parle Bisleri Ltd.

Coca-Cola Co

Pepsi Co Inc.

Manikchand Group

UB Group

Parle Agro Pvt. Ltd

Dabur India Ltd

ational Dair! Develop"ent Board

Unilever Group

#ata Global Beverages

#unip Agro Pvt. Ltd.

$ed Bull G"b%

%a"bard &ak' Laboratories Ltd.

Pio"a Industries Ltd.

Dhara"pal (at!apal Ltd.


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#ata #ea Ltd.

BOTTLED ATER

Parle Bisleri Ltd.

Pepsi Co Inc.

Coca-Cola Co

Manikchand Group

UB Group

Parle Agro Pvt. Ltd

ational Dair! Develop"ent Brand

#ata Global Beverages Ltd.

Dhara"pal (at!apal Ltd.

arang group

#ata #ea Ltd.

CARBONATES

Coca-Cola Co

PepsiCo Inc.

Parle Agro Pvt. Ltd.

Dr. Pepper (napple Group Inc.

Cadbur! (ch)eppes Plc.

'UICES

Coca-Cola Co

PepsiCo Inc.

Parle Agro Pvt. Ltd.

Dabur India Ltd.

#unip Agro Pvt. Ltd.

Pioneer *ood Group Ltd.

%ershe! Co.

#ata Global Beverages Ltd.

#ata #ea Ltd.

Godre+ Group

RTD T*

Unilever Group

estle (A

S+o, & E/, D,/

Pepsi Co Inc.


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$ed Bull G"b%

(untor! %oldings Ltd.

%ector Beverages Ltd.

#hai Beverage PCL

Gold)in %ealthcare Pvt. Ltd.

Coca-Cola Co

,M, Group

Glao("ithline plc

*raser / eave Ltd.

CARBONATED SOFT DRIN%S

0Market Division b! brands1

BRAND COMPAN#

(prite Coca-Cola Co

#hu"s Up Coca-Cola Co

Pepsi Pepsi Co Inc.

Li"ca Coca-Cola Co

Coca-Cola Coca-Cola Co

Mountain De) Pepsi Co Inc.

Mirinda Pepsi Co Inc.

2-Up Pepsi Co Inc.

*anta Coca-Cola Co3vervess Pepsi Co Inc.

inle! Coca-Cola Co

Duke4s Pepsi Co Inc.

Diet Coke Coca-Cola Co

App! Parle Agro Pvt. Ltd.

Diet Pepsi Pepsi Co Inc.

(ch)eppes Dr. Pepper (napple Group Inc.

Pepsi Ca'5 Chino Pepsi Co Inc.

Pepsi Gold Pepsi Co Inc.

(ch)eppes Cadbur! (ch)eppes Plc

6anilla Coke Coca-Cola Co7thers 7thers

(In decreasing order of brand shares)


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R4*5 T,/5

HEADLINES

Carbonates increases in o''-trade value b! 89: in ; rising to I$?=.8 billion

Increasing nu"bers o' consu"er 'oodservice outlets> especiall! chained 'ast 'ood outlets>pro"otes on-trade volu"e gro)th in carbonates

#he 8 especiall! in India4s tier I cities> started to consu"e carbonates>

especiall! cola carbonates> )ith or a'ter their "eals> "ainl! to uench their thirst.

Carbonates increased in o''-trade volu"e b! ?: in ; a slo) rate o' gro)th in

co"parison )ith the 8;: revie) period o''-trade volu"e CAG$. During ; sales o'

carbonates continued to 'ace tough co"petition 'ro" other beverages> including +uice and

$#D dair! drinks> each o' )hich continued to record strong gro)th over the revie) period.%ealth-conscious Indian consu"ers are beginning to "ove to)ards other beverages )hich

are perceived healthier.

&ith the increase being recorded in the nu"ber o' double-inco"e households in India> rising

levels o' discretionar! spending in ; )hich

are the "ost co""onl! available beverages in on-trade outlets as )ell as in o''-trade

channels. 7n-trade sales o' carbonates continued to gro) in ; gro)th in this categor!re"ained stagnant in ;


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#hu"s Up> Coke> (prite> Li"ca and *anta. Coca-Cola is thus presenting tough

co"petition across all categories o' carbonates> including le"onadeli"e and orange

carbonates. #he co"pan! continues to 'ocus on aggressive pro"otional activities in orderto reach out to a )ider consu"er base.

Carbonates re"ained a highl! consolidated categor! in ; PepsiCo %oldings and Coca Cola India Pvt Ltd> "aintaining theirdo"inance. #hese t)o co"panies continued to co"pete strongl! )ith each other to

"aintain their respective value shares in various categories o' carbonates. In addition to

these "ultinational giants> s"aller brands such as $C Cola have started to beco"e visible

on retail shelves> especiall! in orth India.

Parle Agro introduced Ca'5 Cuba Co''ee $ush during the revie) period. #he brand

o''ered a co"bination o' roasted co''ee beans )ith carbonated 'iEE and targets "ainl!

!ouths and pro'essionals )ho are read! to eperi"ent )ith di''erentiated products.

%o)ever> the product is !et to achieve signi'icant space in the categor! due to the lo)pro"otions and its relativel! li"ited availabilit!.

PROSPECTS

#he popularit! o' carbonates a"ong Indian consu"es across all age groupsgenders and

the )idespread availabilit! o' these products in all retail channels across all regions o'

India are likel! to re"ain the ke! drivers o' gro)th in the categor! over the 'orecast

period. Carbonates o''-trade volu"e sales are epected to increase at a CAG$ o' F: overthe 'orecast period.

Despite the 'act that carbonates are increasingl! perceived as inherentl! unhealth!> "ost

Indian consu"ers> especiall! the !ounger population> are set to purchase these productsthrough retail channels 'or at-ho"e drinking as )ell as through on-trade channels during

the 'orecast period. 7nl! a s"all set o' health-conscious consu"ers are epected to begin

reducing their intake o' carbonates during the 'orecast period> substituting the" )ithother beverages including +uice and dair!-based drinks.

Gro)ing health consciousness coupled )ith an! 'urther increases retail prices epected to

place carbonates in direct co"petition )ith other relativel! health! beverages including

+uice and 'lavored "ilk> "ainl! in urban areas o' India. #his trend "ight e"erge as a

potential threat to 'urther gro)th in carbonates over the 'orecast period.

Multinational co"panies including PepsiCo and Coca Cola are looking to gain additional

volu"e gro)th 'ro" consu"ers in rural India over the 'orecast period. &hile Coca Cola

has alread! introduced its carbonates at lo)er price points o' I$8 PepsiCo is epectedto continue 'ocusing on epanding its distribution and develop and launch ne) products

at lo)er price points in rural parts o' India.

7ver the 'orecast period> consu"ers are because to "ake a slight shi't a)a! 'ro" cola-

based beverages to)ards le"onadeli"e> )hich is perceived as healthier. As a result> o''-trade volu"e sales o' le"onadeli"e are likel! to increase at a CAG$ o' 89: in constant

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PEPSI CONSUMER PROFILE

BRAND EUIT#

U/7 94*: /*;.

S+:, 4oo ,*/5 ,=*44.

P,o/9 9,:/ & o:.

B,*/5 A;>**5o,- S:*:,: :*/? S*=:/ T/54*,? R*/>,

%*+oo,? M S D:o/ (#o: I=o/ o9 I/5*).

T*4/- #: H* #o/*/ M, '**/? C:*/ : G*;? L@ 9o,

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CONSUMER SEGMENTATION

B:*@o,*4-

o

S*9 & 4:

o T:, 7/=:,

o I//=@ +,=:*

P=:o,*+:=-

o T,/5

o Coo4

P,o94-

o #o/ *994/ I/5*/

o U,>*/ = o9 I/5*



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Co/;, B:*@o,

Beverages represent a signi'icant portion o' an urban household4s epense budget.

#he total carbonated so't drinks "arket in India is "ore than 82


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2"14#15 2"15#16 2"16#17 2"17#1 2"1#1!

5$6"

5$"

6$""

6$2"

6$4"

6$6"

6$"

7$""

7$2"

7$4"

7$6"

Carbonates India

%&r'on&t(s Indi&

U/5,*/5/ : 5;/o/ o9 =o/;, >:*@o, 9o, P+

#he consu"er behavior is in'luenced b! cultural> social and personal 'actors.

DIM3(I7( 7* C7(UM3$ B3%A6I7U$C4,*4 F*=o,

Pepsico in India gives pro"otional "essage as HCo"e Alive )ith Pepsi.#his "essage has di''erent "eaning in Ger"an. In Ger"an it "eans> co"e

alive out o' grave. (o> it is i"portant to understand di''erent culture 'or

"aking "arketing strateg!.

Around the elections in ,une ; PepsiCo participated in hundred election

rallies> selling drinks b! partnering )ith local election co""issions in high

voter turnout constituencies o' UP. Its sales sta'' sported tees )ith the


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"essage 6ote karo sabhi... 7h Jes Abhi - "erging its ad tagline )ith a

social "essage. #his )as done keeping in vie) that UP is the state )ith

highest nu"ber o' voters.

And PepsiCo boss Indra oo!i )ants the India ar" to be a ke! gro)th

bastion> to close in on its larger rival. 7' 8.; billion people in this countr!>onl! ;< "illion consu"e so't drinks> indicative o' great potential.

#he cola categor! has hit a bit o' a glass ceiling in urban "arkets> )hich

have contracted )ith consu"ers getting a lot "ore conscious about health.

#hus> the 'ocus see"s to be on rural consu"ers> because the! are not so

i"pacted b! the health stor!.K Both 'ir"s are reaching over t)o "illion

retail outlets each. (hiv (hivaku"ar> chair"an and C37> PepsiCo India has

said> K#he range o' h!dration needs in India )ill "ultipl! and "ultipl!

uickl!.

Aerated drinks toda! are consu"ed b! all ecept those )ho cannot a''ord tobu! an! drink. An CA3$ stud! sa!s that ?8: so't drink sales are "ade to

the lo)er> "iddle and upper "iddle classes.

Increase in per capita ependiture o' rural India b! al"ost ; that drugco"pan! ovartis is reportedl! planning a pilot pigg!backing on Pepsis

distribution clout to carr! essential "edicines to rural consu"ers.


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So=*4 F*=o,

P,o/*4 F*=o,

&ith a reduction in average 'a"il! siEe to =.; and )ith both the parents

)orking> read! to drink beverages such as Pepsi have beco"e an al"ost

per"anent co"ponent o' the 'ridge.

Ad ca"paigns help Pepsi be personi'ied as a !oung> vibrant> energetic>

sport! personalit! that s!ncs to the "indset o' toda!4s !outh. Associating

)ith IPL> Cricket )orld cup helps in tapping onto the cricket 'renE! nationo' ours.

#he changing li'est!le o' the consu"ers along )ith the presence o' "an!

healthier alternatives> is leading to a decline in the de"and 'or Pepsi.


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2""72""2""!2"1"2"112"122"132"14

12$""

12$5"

13$""

13$5"

14$""

14$5"

15$""15$5"

16$""

Pepsi Market share breakdown - India

Indi& %&r'on&t(s

P(-si P(-si%o In*

P=:o4o=*4 F*=o,

In ; including being ranked in the

top ; o' the best global brands> ranking nu"ber 'our overall b! Diversit!

Inc> and earning the Green A)ard b! the 3nviron"ental Protection Agenc!.

#his has helped create a sociall!-conscious-brand i"age in the "inds o' its

sociall! conscious consu"ers.


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P+ ;*,/ ;

P,o5=- Carbonated beverage

utrition 'act-

(erving siEe 8; 'l oE 09 "l1

(ervings per container 8

A"ount per serving

Calories 8< Calories 'ro" 'at general stores etc.

P,o;oo/- Pepsi "ainl! pro"otes its product through di''erent t!pe o'

advertise"ent. 'or ea"ple-

8. Print advertise"ent- ads that are printed b! co"panies and published

in ne)spapers> "agaEines> 'l!ers.;. 7utdoor advertise"ent- ads are on Billboards> kiosks on electric

poles> bus shelter> )all poster> banners and vehicular displa!.

9. Broadcast advertise"ent- advertising on radio> television and internet

are broadcast advertising.

=. Pepsi also pro"ote its product through sports sponsorship.

. Brand a"bassadors- (achin #endulakar> (hahrukh khan> M.(. Dhoni>

%rithik $oshan> Deepika Padukone and $anbir apoor.


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Pepsi - Market Study