Project Report on Marketing Strategy of PepsiCo India Holdings Pvt Ltd
PepsiCo India Holdings Pvt Ltd
Strategic Direction
·
With emerging sectors, such as
100% juice and functional drinks, and carbonates alternatives, such as bottled
water and juice drinks, driving growth in soft drinks in India, PepsiCo India
is expected to focus its efforts on developing its non-carbonates business.
·
The company is expected to
increase its push behind its brands in emerging sector products, such as
Gatorade and SoBe, and expand its presence in bulk bottled water.
Key Facts
|
Full name of company:
|
PepsiCo India Holdings Pvt Ltd
|
|
Address:
|
3B, DLF Corporate Park, “S” Block,
Qutab Enclave Phase III, Gurgaon 122002, Haryana, India
|
|
Tel:
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+91 124 235 5880
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Fax:
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+91 124 235 6270
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www:
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www.pepsiindia.co.in
|
|
Activities:
|
Carbonates, fruit/vegetable juice,
functional drinks and bottled water
|
Source: Company
website
Company Background
·
PepsiCo India Holdings Pvt Ltd
was set up in 1989, and is a wholly-owned subsidiary of PepsiCo Inc.
·
The company operates in the
soft drinks industry in India. The company’s Indian operations are focused
primarily on carbonates, followed by bottled water, fruit/vegetable juice and
functional drinks. An alliance with Hindustan Unilever Ltd to market and
distribute Lipton Ice Tea is a strategy aimed at capitalising on PepsiCo
India’s strengths in distribution and marketing.
·
The company has national
coverage, with a nationwide network of manufacturing plants and distribution
points.
·
In early 2008, PepsiCo India
rebranded its 100% juice brand as Tropicana 100%, and in early 2009 it forayed
into the energy drinks subsector by beginning the roll out of SoBe Adrenaline
Rush. The company also changed the labelling of Aquafina to highlight its
efforts in becoming a “positive water balance” company.
·
In September 2008, the company
allocated US$500 million for expansion in India, aiming to triple its business
in the Indian market.
Production
·
The company supplies the
domestic market through its 43 bottling plants, of which 15 are company-owned
and 28 are operated by franchisees.
·
The company exports to
neighbouring markets. It is not known to undertake third party manufacturing.
Competitive Positioning
·
The company is ranked second in
soft drinks in India, behind Coca-Cola India, with a 20% off-trade volume share
in 2008.
·
The company’s share declined
over the review period, as over 70% of the company’s sales are accounted for by
carbonates, which have seen lower growth rates than highly dynamic sectors such
as bottled water and 100% juice. However, the company is striving to position
itself as a diversified soft drinks player, and its brands in double-digit
growth categories, like Tropicana Twister, Tropicana 100% and SoBe, are
expected to stabilise its declining share of soft drinks in India.
·
While PepsiCo India’s mainstay
in soft drinks in India is carbonates, the company’s brands have a strong presence
in emerging categories, such as 100% juice. With its recent entry into energy
drinks and its emphasis on developing its non-carbonates products, the company
is well positioned to leverage the growth in emerging categories of soft
drinks.
·
The company has a wide product
portfolio, with brands in all the major soft drinks sectors in India. In
addition to its own brands, the company markets Lipton Ice Tea in collaboration
with Hindustan Unilever.
·
The company’s product portfolio
includes economy, standard and mid-priced brands.
·
The company is credited with
innovative youth-centric marketing campaigns and product launches, such as the
affordably priced 250ml slim can initiative “My Can” which re-ignited youth
interest in carbonates in 2007.
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Product type
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Off-trade volume share
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Rank
|
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Carbonates
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39.2%
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2
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Fruit/vegetable juice
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7.6%
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5
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Bottled water
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13.5%
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3
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Source: Euromonitor
International
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