Marketing strategies adopted Indian soft drink industry

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Example of Pepsi (PepsiCo)

Pepsi is a carbonated soft drink produced and manufactured by Pepsi-co. the drink was first made in the 1890s by Pharmacist Caleb Brad ham in New Bern, North Carolina. The brand was trademarked on 16 June 1903. There have been many Pepsi variants produced, over the year since 1898.

CURRENT POSITION:PepsiCo is the second largest food & beverage company in the world. It manufactures, markets and sells a variety of salty, sweet & grain based snacks, carbonated & non-carbonated beverages.

ENTRY OF PEPSI IN INDIA:Pepsi entered into the Indian beverage market in July 1986 as a joint venture with two local partners cottas & Punjab Agro, forming Pepsi-Food Ltd.

MARKETING STRATEGIES OF PEPSI:(A) Market Segmentation Pepsi segment its market in two level:1) Demographic. 2) Niche Marketing.

1) Demographic:- Focusing on the Pepsi-Cola beverage products. PepsiCo has retained a long history of concentrating on youth as its main target market generation next. It has spend billions of dollars in trying to woo the young and nearly young. The reason for targeting this market is that it is the target among its users. 2) Niche Marketing:- Pepsi focused on varietals differentiation by introducing niche product. To increase volume in order to counter the flat sales, Pepsi introduce products. Like 7up, Sprite, Mountain Dew, Pepsi-one & Pepsi-Blue.

Segmentation Identifying meaningfully different groups of consumers.

Targeting Selecting which segments to serve.

Positioning Implementing chosen image & appeal to chose image

Product

Price

Distribution

Promotion

Targeting the market of the urban & rural India. Positioning and trying to create an image or identity in the minds of
their target market for its product or brand.

Pepsi Rural Marketing:PepsiCo India has entered into rural market by having joint programmed with the Punjab Agricultural University in Ludiana and Punjab Agro Industries Corporation in Chandigarh. The practices to help Punjab farmers produce crops that would make Indian products international competitive. Apart from that thay have given advertisement to attract the rural people with the celebrities like Amitabh Bachchan & cricketer Sochine Tendulkar. The Marketing Mix:4Ps with special reference to Pepsi

The Marketing Mix

1) Product :- After the success of Pepsi, PepsiCo launched another products like- Mountain Dew, Mirinda, Diet-Pepsi (Pepsi-max), Tropicana, Sprite etc. 2) Promotion :- PepsiCo has advertised products through many different ways & media. Through T.V. we have seen different advertisements of its products such as Pepsi or Dew using the lines of youngistan ka wow and Dar ke age jeet hai respectively. PepsiCo also advertise its products by targeting those favourable television programs like sports or T.V. series etc. 3) Place :-The urban & rural markets where customers are normally expected to shop fro them to satisfy their needs. 4) Price :- Pepsi being a company that _ _ _ _ _ _ on product quality tends to sell its products with price range from moderately low to high price, depending upon the use and the targeted customers, Pepsi decides its price on the bases of the competition. For Example Whenever Coca-Cola reduces their prices, Pepsi also responds through price cuts & then eventually after that period, it raises its price.

SWOT Analysis of Pepsi

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STRENGTH :i) ii) iii)

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Pepsi brands enjoy a high profile global presence. Pepsi owns the world second best selling soft drink brand. Aggrssirc marketing strategies using famous celebrities. WEAKNESS :i) Pepsi now is not matching in the matter of taste with its target market young people because Pepsi is too sweet.

OPPORTUNITIES :i) ii) Increased consumer concerns. Growth in healthier beverages like with the launch of diet Pepsi they target the health & diet conscious consumers.

THEATS :Competition Coke as we all know is the biggest competitors and changing marketing strategies of coke directly effect the selling of Pepsi.

CONCLUSION :Pepsi has been successful in generating profit in this extremely rivalries industry. What the company should do now is employ a strategy that not only addresses its own deficiencies in an effort to grow market share, but one that will increase the overale size of the pie. This strategy in the end, will allow Pepsi to grow & surtain above average returns.