Case study of Pepsi in India

Contents1. Basic information...................................................................................3

1.1 Data about INDIA................................................................................................3

1.2 GDP......................................................................................................................4

1.3 Data about PAKISTAN:.......................................................................................4

2. Brand.......................................................................................................5

3. Logo and Packaging...............................................................................5

4. Define market areas (countries):..........................................................6

5. Give reasons why you chose the product and the markets:...............6

6. Buying Behavior of Key audience(s).....................................................7

7. Positioning...............................................................................................8

8. List communication techniques and Medias, which are possible to use in both countries:.................................................................................9

9. Life Cycle Representation of product in both countries.....................9

10. Promotion............................................................................................10

11. Message Delivery and Restrictions...................................................11

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1. Basic informationPepsi (carbonated Soft drink) was firstly introduced in New Bern, North Carolina in 1898. It was

later named Pepsi Cola, possibly due to the digestive enzyme pepsin and kola nuts used in the

recipe.

In 1903, Bradham moved the bottling of Pepsi-Cola from his drugstore to a rented warehouse. In

1909, automobile race pioneer Barnay Oldfield was the first celebrity to endorse Pepsi-Cola,

describing it as "A bully drink...refreshing, invigorating, a fine bracer before a race". In 1926, Pepsi

received its first logo redesign since the original design of 1905. In 1929, the logo was changed

again.

1.1 Data about INDIAPopulation: 1,156,897,766 (July 2009 est.)

Religions: Hindu 80.5%, Muslim 13.4%, Christian 2.3%, Sikh 1.9%, other 1.8%, unspecified 0.1%

(2001 census)

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Languages: Hindi 41%, Bengali 8.1%, Telugu 7.2%, Marathi 7%, Tamil 5.9%, Urdu 5%, Gujarati

4.5%, Kannada 3.7%, Malayalam 3.2%, Oriya 3.2%, Punjabi 2.8%

Including reduced controls on foreign trade and investment, began in the early 1990s and has served

to accelerate the country's growth, which has averaged more than 7% since 1997

An industrial slowdown early in 2008, followed by the global financial crisis, led annual GDP

growth to slow to 6.1% in 2009, still second highest growth in the world among major economies

1.2 GDP

Growth rate: 6.5% (2009 est.), 7.4% (2008 est.), 9% (2007 est.)

Country comparison to the world: 13

Television broadcast stations: 1,400 (2009)

Internet users: 81 million (2008)

”Pepsi - Yeh Hai Youngistan Meri Jaan”

Youngistaan loves it. 200 million people worldwide love it

Pepsi, Cricket and Bollywood have been joined at the hip since the beginning. Shah Rukh Khan,

Sachin Tendulkar, Saif Ali Khan, Amitabh Bachchan, Kareena Kapoor, Priyanka Chopra, Virender

Sehwag, M. S. Dhoni, John Abraham, Ranbir Kapoor and Deepika Padukone are a few celebrities

who will go any length for a chilled Pepsi.

1.3 Data about PAKISTAN:

Population: 174,578,558 (July 2009 EST.)

Religions: Muslim 95% (Sunni 75%, Shia 20%), other (includes Christian and Hindu) 5%

Between 2001-07, however, poverty levels decreased by 10%, as Islamabad steadily raised

development spending. Between 2004-07, GDP growth in the 5-8% range was spurred by gains in

the industrial and service sectors

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2. Brand

It is one of the brands in the world that is known all over the world; even little children know it at

their very early age. Having unique logo since 100 years the logo may be is the most popular logo

in the world. Whatever was the economical situation in the world it never went on zero sales but

when the price was 10 cents its sale was slow but as the price came at 5 cents the sale grew

substantially. Before TV in the world it was advertised through radio and first most popular

campaign at radio for Pepsi was jingle. This is also one of those brands in the world about which we

can say that at different times due to higher sales in different areas Pepsi became successful to

double the profit.

3. Logo and Packaging

Packaging, which is not as highly perceived by businesses, is still an important factor to examine in

the marketing mix. Packaging protects the product during transportation while it sits in the shelf and

during use by consumers. It promotes the product and distinguishes it from the competition. Pepsi

has benefited from packaging the product with incentives and endorsements on the labeling as a

promotional strategy to increase its volume of sales and revenue.

Pepsi Cola named Pepsi, due to the digestive enzyme Pepsi and kola nuts used in the recipe.

Interesting new and changing packaging for separate products make it more influencing product for

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new and old customers. In fact its logo is quiet dashing and packaging is decent. Youngsters often

take Pepsi as sexy drink in India.

4. Define market areas (countries):

Pepsi is well known product all over the world. In countries where it has not been introduced

officially, according to rumors, it is smuggled there and people love to drink it there. The product

have gained a lot in terms of sales and profit even in tricky countries like Pakistan, Saudi Arabia etc

where more than 95% people are Muslims and many times this product has been blamed as anti

Muslim drink or sometimes like once it was said that PEPSI means PAY EACH PANNY TO

SAVE ISRAEL and broachers having printed this phrase were distributed by some Islamist Parties

in the whole country but Pepsi tackled these time to time problems very well all over the world. By

showing the face of defeat to Coca cola Pepsi has been the market leader for some times. In other

parts of the world like Europe South America where it had strict competitors it used different

strategies to compete them and everywhere introduced it uniquely but according to taste and

demand of that culture.

Pakistan and India:

Products Introduced:

Pepsi, Teem, Miranda, Mountain Dew (Carbonated Drinks)

Aquafina (Mineral Water)

Lays (Chips)

5. Give reasons why you chose the product and the markets:

We selected these two countries because both these come to the top 7 most populated countries in

the world and it will be interesting to compare Pepsi with Coca cola in these two countries. In

Pakistan mostly people drink Pepsi so much because all other alcoholic drinks are prohibited there

and in India there are more Muslims than Pakistan. People also do not drink other energy drinks

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because those are costly as compare to Pepsi and both these countries are developing ones and little

bit poor also. In some parts of Pakistan and India Pepsi is drunk as a fashion like in big cities

students consider it compulsory to drink Pepsi once in university or in college every day.

Wedding ceremonies in Pakistan are considered one of the best occasion for Pepsi to increase its

sale in Pakistan because in one marriage ceremony if there are 300 people and they come three days

continuously I am sure they can drink 900 Pepsi bottles easily. Distributors by giving some special

discounts get very good orders by these events. Ramzan (the month of fasts) for Muslims when it

comes Pepsi through new advertisement every year has to remind and every year before Ramzan

Pepsi decrease the prices of 1 liter and 2 liter bottles. Few years ago people in these two countries

gave cakes and different cloths and jewels to each other as gifts on EID. But now days it is very

common to take 6 bottle pack of Pepsi when they visit each other on EID day. Then comes the

Second EID after 2 month and 10 days of first EID. Before one week of this EID people try to store

as much Pepsi as they can to enjoy it with meet of slaughtered sheep and buffalos. So they would

not have to go again and again to buy it.

6. Buying Behavior of Key audience(s)

People love to drink Pepsi because Pepsi is cheaper as compared to energy drinks and other juices.

Sometimes rumors about purity of water or for Muslims when it was said that PEPSI means ”Pay

Each Penny To Save Israel” people avoid to drink Pepsi in Pakistan and India. Impressive

campaigns which include top movie stars and cricketers from both countries influence customers to

enjoy Pepsi more. Before Aids or other festivals People expect low prices and try to stock at home

Almost every person is key audience for Pepsi in these two countries. Before coming here I was

amazed of an incidence in which my cousin who after having an operation suddenly shocked the

doctor right after when he was coming back to his senses and Doctor asked him how are you feeling

now and are you hungry? He said yes I am OK and hungry so I want to drink Pepsi with a burger.

Imagine that how crazy patients are also there to drink Pepsi. Children who get minor throat

diseases (infections) give very tough time to parents when they cry for Pepsi. Old people in India

and Pakistan love to drink Pepsi when they mix it with milk or when they eat a lot of meat. Pepsi

can be the part of every dining table if there are many spicy foods at any event in Hindu societies

alcohol is not prohibited so they many of times mix wines and other alcoholic drinks with Pepsi and

enjoy it.

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7. Positioning

Positioning is the process of creating, the image the product holds in the mind of

consumers, relating to competing products. Coca cola and Pepsi both make soft

drinks, Coca cola may try to compete but they will still be seen as down market from

Pepsi.

Pepsi has been positioned based on the process of positioning by direct comparison

and have positioned d their products to benefit their target markets. Most people

create an image of a product by comparing it to another product, thus evident

through the famous battles between Coca-cola and Pepsi products.

Following are the local and foreign competitors for Pepsi in Pakistan and India.Thumps Up (local Indian cola drink)

Shezan (Local Pakistani drink)

Energy Drinks like Red bull and battery etc.

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And of course Coca Cola and its other products like Sprite, Fanta and Sprite 3G are the biggest

competitors of Pepsi all over the world and in Pakistan and in India also. After visiting one Pepsi

producing company in Pakistan I got amazed that all over the world Coca Cola’s sales are higher

than Pepsi but in Pakistan it is Pepsi which is more popular and have greater market share than

coke. Reason of this edge on coke can be described in communication techniques more than here.

8. List communication techniques and Medias, which are possible to

use in both countries:

TV advertisements having cricket stars whereas reasons for failure of coke’s edge on Pepsi in this

part of world is that Coke instead of using Cricket super stars signs and use to show football players

in these advertisements and India and Pakistan both do not have national football teams and People

do not know who is Kaka, Rolando and Ronaldinhio. Pepsi also use Bollywood (Indian) movie stars

in its ads which are also very well known in Pakistan because of common culture and Languages.

Pepsi also arranges a lot of Cricket Tournaments between India and Pakistan which are considered

best rivals of each others in the world of Cricket. People love it and Pepsi love it also when they get

bigger share of sale.

Sponsorships to many charity programs and players from different sporting events and some time

by organizing free musical concerts for people’s entertainment.

In the last decade of previous century Pepsi promoted its brand name through a campaign called

Surprise Prize which is considered the biggest in Pakistan. Including many little prizes Pepsi

offered a brand new Mercedes Benz to the lucky winner who found this car’s picture in one of the

cap of Pepsi bottles. Through this campaign Pepsi became so popular in Pakistan.

Seminars in universities

Special discounts on Special Occasions like on EID and in the season of weddings

9. Life Cycle Representation of product in both countries

To be able to market its product properly, a business must be aware of the product life cycle of its

product. The standard life cycle tends to have five phases.

Development

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Introduction

Growth

Maturity

Decline

Life cycle of Pepsi in both countries

Pepsi is currently in the maturity stage, which is evidence primarily by the fact that they have a

large, loyal group of stable costumers in India as well as Pakistan. Furthermore, cost management,

product differentiation and marketing have become more important as growth slows and market

share becomes the key determinant of profitability.

10. PromotionTo promote Pepsi we need to influence the youngsters of both countries through sponsoring cricket

as well as other activities. We will produce pamphlets/brochures in which we would like to have

one top cricketer from each country having regular Pepsi bottles in their hands. Our slogan will be

’’Cricket ke rang Pepsi ke sang’’ means joys of cricket through Pepsi, which can have positive

affect in promotion. These brochures will be distributed amongst youngsters in Universities,

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Colleges, Cold corners, Public places. We also need to advertise through TV, Radio, and Movie

Theaters as much as needed. Especially advertisement should be funny and attractive.

11. Message Delivery and RestrictionsUrdu, English and Hindi languages will be used in all promotional techniques. Vulgarity i.e. short

cloths as well as harsh word should not be allowed as it’s not allowed in Pakistan. Sexy cloths and

quiet vulgar word as a joke is allowed in India. Emotional gestures can be used in all categories of

promotions.

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