Name:- Sudeep Poudel Roll Number:- 03320002 Programme:- Advance Diploma in Advertising and Graphic Design 3 year Programme

Assignment Final project Formative Assignment Level FCLII

PEPSI COLA

COMPANY PROFILE
PEPSIco is one of the largest companies there is that is engaged in the food, beverage, and snack industries. Their address is 700 Anderson Hill Road, Purchase, N.Y. 10577. Their phone number is 914-253-2000 and their fax number is 914-253-2070. Their stock symbol is PEP and they are listed on the NYSE. Business Summary: PEPSICo, Inc. is engaged in the snack food, soft drink, juice, and fast food franchise businesses. The Company, through its subsidiaries, markets, sells and distributes various

snacks in the United States and internationally, manufactures concentrates of PEPSI, Mountain Dew and other brands for sale to franchised bottlers in the United States and international markets and produces, markets, sells and distributes juices under several Tropicana trademarks in the United States and internationally. PEPSIcos domestic snack food business is conducted by Frito-Lay North America, and its international snack food business is conducted through Frito-Lay International. The Company's soft drink business operates as the PEPSI-Cola Company and is comprised of two business units, PEPSI-Cola North America (PCNA) and PEPSI-Cola International (PCI). In December 2000, the Company announced an agreement under which a subsidiary of PEPSICo will merge with The Quaker Oats Company, and Quaker will become a wholly owned subsidiary of PEPSICo. Quaker is a large worldwide marketer of foods and beverages. It manufactures and markets Gatorade thirst quencher, along with hot cereals, pancake syrups, grain-based snacks, cornmeal, hominy grits and value-added rice products. The proposed merger is subject to certain closing conditions, including approval by shareholders of both companies and regulatory approvals. The transaction is expected to close in the first half of 2001. PEPSIco also operates several food franchises including Pizza Hut, KFC, and Taco Bell. Capturing the market is the main issue facing any company and when it comes to Beverage market, it becomes more intense because there are just two players and they are fighting strongly to capture each others market and don't have any other option. Both Coke and PEPSI are trying to gain market share in this beverage market, which is valued at over $30 billion a year. Just how is this done in such a competitive market is the underlying issue. The facts are that each company is coming up with new products and ideas in order to increase their market share. PEPSI has always taken the lead in developing new products, but Coke soon learned their lesson and started to do the same. Coke hired marketing executives with good track records (98). Coke also implemented cross training of managers so it would be more difficult for cliques to form within the company. The creativity and effectiveness of each company's marketing strategy will ultimately determine the winner with respect to sales, profits, and customer loyalty.These two companies are constructing new ways to sell Coke and PEPSI, but

they are also thinking of ways in which to increase market share in other beverage categories. Although the goal of both companies are exactly the same, the two companies rely on somewhat different marketing strategies. PEPSI has always taken more risks, acted rapidly, and was always developing new advertising ideas. Both companies have also relied on finding new markets, especially in foreign countries. In the foreign markets, Coke has been more successful than PEPSI. For example, in Eastern Europe, PEPSI has relied on a barter system that proved to fail. However, in certain countries that allow direct comparison, PEPSI has beat Coke. In foreign markets, both companies have followed the marketing concept by offering products that meet consumer needs in order to gain market share. For instance, in certain countries, consumers wanted a soft drink that was low in sugar, yet did not have a diet taste or image. PEPSI responded by developing PEPSI Max.The next step is to take fast action to develop a product that meets the requirements for that particular region. Both companies cannot just sell one product; if they do they will not succeed. They have to always be creating and updating their marketing plans and products. The companies must be willing to accommodate their target markets. Gaining market share occurs when a company stays one-step ahead of the competition by knowing what the consumer wants. My recommendation is to make sure the company is always doing market research. This way they are able to get as much feedback as possible from consumers. Next, analyze this data as fast as possible, and then develop the new product based upon this data. Once the product is developed, get it to the marketplace quickly. Time is a very critical factor. In my opinion, with all of these factors taken into consideration any company should give any company a good jump on market share.

SOFTDRINK INDUSTRY IN INDIA India with a population of more than 1.1 billion is potentially one of the largest consumer markets in the world after china. The consumer market is popularly known as the FMCG market or the fast moving consumer goods market. Soft drinks come under this category. Soft drink is basically purchased in India basically for two reasons namely to quench thirst and for refreshment. The Indian economy currently is passing through a bullish phase with increasing per capita income. Subsequently the lifestyle of the Indian consumer is also changing with increased spending on entertainment, refreshment etc. that is why soft drink companies are looking forward to India with great enthusiasm in the future to increase their revenue. The soft drink industry in India dates back to the 1940s when Parle introduced the first branded soft drink called gold spot. Cola giant coca-cola was the first foreign soft drink company to setup its shop in India in 1965. Coca-cola made a very good beginning and dominated the market right from the word go. It faced no competition at that time. The marketing people did not even need to publicize cocacola. This extraordinary success of coca-cola can be attributed to the following factors, Absence of contemporary competitive brand.The giant image of coca-cola in the western countries preceded their entry into the Indian market, and Indians at that time were very fond of foreign goods. Parle Exports Pvt. Ltd later introduced a lemon flavored soft drink called Limca in 1970. Before this they had introduced a cola flavored drink called pepping which they had to withdrew in the face of stiff competition from coca-cola. But the overtly conservative Indian government of that time with

special interest in safe guarding the interest of the Indian companies started insisting that coca-cola should agree on the following points in order to continue in India. Coca-cola decided to windup its operations in 1977 rather than bowing to the Indian government. The main demands of the Indian government were, Dilution of equity, as the government felt that lots of foreign currency was being wasted. Manufacturing of the secret concentrate in India. 13 Disclosure of the chemical composition of the concentrate. The exit of coca-cola left a large vacuum in the soft drink market. But this also accelerated the growth of several Indian soft drinks. Many new soft drinks like frooti, jump-in etc were launched in the form of tetra pack. However the bottling plants and the distribution networks of these companies were not up to the mark and left much to be desired. It took these companies almost one year to come up with new flavors like Campa cola, Rush etc. to survive in the industry. However Parle, the pioneer in the soft drinks market blazed its way to national prominence with their product Thumps Up bearing the slogan happy days are here again which became a craze. This particular slogan helped to win over the loyalists of coca-cola who were in a state of cola shock or cola depression! Soon the soft drink industry started registering phenomenal growth rates and all parley products namely Gold Spot, Limca and Thumps Up became the brand leaders in their own segments. In spite of this the soft drink market had a huge untapped potential. In 1990, coming of the multinational brand PEPSI and immediately started giving stiff competition to Parley and Coke. The parent company of PEPSI was founded in 1890 at North Carolina in USA. Its CEO is Roger Enrico. PEPSICo India Holdings Pvt. Ltd. in headquartered in Gurgaon and its CEO is Ms. Indra Nyui. In India it has 34 bottling plants of which 8 are company owned bottling outlets (COBO) and 26 are franchise owned bottling outlet (FOBO). SMV Beverages is a franchise owned bottling outlet. Coca-cola reentered the Indian market in 1993 in collaborations with Parley India Ltd PEPSICO IN INDIA PEPSICo gained entry to India in 1988 by creating a joint venture with the Punjab government- owned Punjab Agro Industrial Corporation (PAIC) and Voltas India Limited. This joint venture marketed and sold Lehar PEPSI until 1991, when the use of foreign brands was allowed; PEPSICo bought out its partners and ended the joint venture in 1994. Others claim that firstly PEPSI was banned from import in India, in 1970, for having refused to release the list of its ingredients and in 1993, the ban was lifted, with PEPSI arriving on the market shortly afterwards. These controversies are a reminder of "India's sometimes acrimonious relationship with huge multinational companies." Indeed, some argue that PEPSICo and The Coca-Cola Company have "been major targets in part because they are well-known foreign companies that draw plenty of attention." PEPSICo has grown to become one of the countrys leading food and beverage companies. One of the largest multinational investors in the country, PEPSICo has established a business which aims to serve the long term dynamic needs of consumers in India. PEPSICo India and its partners have invested more than U.S. $1 billion since the company was established in the country. PEPSICo provides direct and indirect employment to 185,000 people including suppliers and distributors. PEPSICo India Holdings Pvt. Ltd. operates through its subsidiaries including PEPSI Foods Ltd, Frito Lay India, and Tropicana Beverages Company. The company, through its subsidiaries manufactures, bottles, and exports fruit juices and carbonated beverages and packaged snacks such as Lays, Ruffles, Fritos, and Cheetos. PEPSICo India is based in Gurgaon, India.

PEPSICo nourishes consumers with a range of products from treats to healthy eats that deliver joy as well as nutrition and always, good taste. PEPSICo Indias expansive portfolio includes iconic refreshment beverages PEPSI, 7 UP, Mirinda and Mountain Dew, in addition to low calorie options such as Diet PEPSI, hydrating and nutritional beverages such as Aquafina drinking water, isotonic sports drinks - Gatorade, Tropicana100% fruit juices, and juice based drinks = Tropicana Nectars, Tropicana Twister, Slice, and the new brand Nimbooz by 7up with real lemon juice. Local brands =Lehar Evervess Soda, Dukes Lemonade and Mangola add to the diverse range of brands. In snacks segment- PEPSICos foods company, Frito-Lay, is the leader in the branded salty snack market and all Frito Lay products are free of trans-fat and MSG. It manufactures Lays Potato Chips; Cheetos extruded snacks, Uncle Chipps and traditional snacks under the Kurkure and Lehar brands. The companys high fibre breakfast cereal, Quaker Oats, and low fat and roasted snack options enhance the healthful choices available to consumers. Frito Lays core products, Lays, Kurkure, Uncle Chipps and Cheetos are cooked in Rice Bran Oil to significantly reduce saturated fats and all of its products contain voluntary nutritional labeling on their packets. The group has built an expansive beverage and foods business. To support its operations, PEPSICo has 43 bottling plants in India, of which 15 are company owned and 28 are franchisee owned. In addition to this, PEPSICos Frito Lay foods division has 3 state-of-the-art plants. PEPSICos business is based on its sustainability vision of making tomorrow better than today. PEPSICos commitment to living by this vision every day is visible in its contribution to the country, consumers and farmers.PEPSICo India's agri-partnerships with farmers help farmers across the country grow and earn more. PEPSICo's involvement in Indian agriculture stems from its vision of creating a cost-effective, localized agri-base in India by leveraging farmers access to world class agricultural practices. PEPSICo India worked with farmers and State Governments to improve agri sustainability, crop diversification and raise farmer incomes. PEPSICo helped transform the lives of thousands of farmers by helping them refine their farming techniques and raise farm productivity, and customized solutions to suit specific geographies and locations. The most ambitious project is a joint program, launched in 1989, between PEPSICo India, the Punjab Agriculture University (PAU) in Ludhiana and Punjab Agro Industries Corporation (PAIC) in Chandigarh. The program focuses on evolving agricultural practices to help Punjab farmers produce internationally competitive products. Over the last five years, PEPSICo has also collaborated with the Thapar Institute of Technology to develop a high quality potato seed program. PEPSICo was a pioneer in the concept of contract farming under which the company transfers agricultural best practices and technology and procures the produce at a guaranteed price. To support the initiative, PEPSICo set up a 27-acre research and demonstration farm in Punjab to conduct farm trials of new varieties of tomato, potato and other crops. The program, which includes seed production, has successfully evaluated the following crops, Several varieties of basmati rice more than 200 varieties and hybrids of chilli 25 varieties and hybrids of corn More than 60 varieties of peanut More than 100 varieties and hybrids of tomato. Additionally, the development of new tomato varieties has helped increase total annual production of tomato varieties from 28,000 tons to over 200,000 tons in Punjab. Yields have more than tripled from 16 tons to 54 tons per hectare.

16 Under the program, 6 high-qualities, high-yield potato varieties have also been introduced to Indian farmers. These new potato seeds have helped to increase farm income and enabled PEPSICo to procure world class chip-grade potatoes for its Frito Lay snacks division. The company has partnered with more than 10,000 farmers working in over 10,000 acres across Punjab, U.P., Karnataka, Jharkhand West Bengal, Kashmir and Maharashtra for the supply of potatoes. PEPSICo India has also partnered with 1,200 farmers in Rajasthan to cultivate barley in a tie up with the United Breweries Group. PEPSICo Indias technical team also implemented a high quality seed program to deliver early generation and disease free seeds to farmers. Tropicana = Tropicana product is an American based company, and was founded in 1947 by Anthony T. Rossi in Bradenton, Florida, USA. Since 1998, it has been owned by PEPSICo, Inc. PEPSI offers the wide variety of products to meet the choice and preference from fun for your items to the products choices that contribute to healthier life style.

Case Study of PEPSI

I. CURRENT SITUATION
A. Corporate Overview and Financial Performance: PEPSICo, Inc. is one of the most successful consumer products companies in the world, with 2000 revenues of over $20 billion and 125,000 employees. The company consists of: Frito-Lay Company, the largest manufacturer and distributor of snack chips; PEPSI Cola Company, the second largest soft drink business and Tropicana Products, the largest marketer and producer of branded juice. PEPSICo brands are among the best known and most respected in the world and are available in about 190 countries and territories. In 2000, PEPSICo has a reported net sale of $20,348 and a comparable net sale of $20,144 in comparison to its 1999s net sales of $20,367 and $18,666 respectively. PEPSICo has increased its comparable net sale of 8% in 2000 while it had an increase of 15% in 1999. This reflects the increasing rate is going slower. On the other hand, PEPSICos interest expense declines 39% showing that the company is significantly lower the average debt level. Back to 1999, the report shows that the companys interest expense dropped 8%, which indicates that the company is performing well in managing its financial strategies. More details about the financial performance of the company will be discussed in the later part of this paper. B. Strategic Posture:

1. Mission: PEPSICo's overall mission is to increase the value of shareholder's investment. They do this through sales growth, cost controls and wise investment of resources. They believe their commercial success depends upon offering quality and value to their consumers and customers; providing products that are safe, wholesome, economically efficient and environmentally sound; and providing a fair return to their investors while adhering to the highest standards of integrity. 2. Objectives: PEPSICos overriding objective is to increase the value of our shareholders' investment through integrated operating, investing and financing activities. Their strategy is to concentrate their resources on growing their businesses, both through internal growth and carefully selected acquisitions. Their strategy is continually fine-tuned to address the opportunities and risks of the global marketplace. The corporation's success reflects their continuing commitment to growth and a focus on those businesses where they can drive their own growth and create opportunities. PEPSICo believes that as a corporate citizen, it has a responsibility to contribute to the quality of life in our communities. This philosophy is put into action through support of social agencies, projects and programs. The scope of this support is extensive -- ranging from sponsorship of local programs and support of employee volunteer activities, to contributions of time, talent and funds to programs of national impact. Each division is responsible for its own giving program. Corporate giving is focused on giving where PEPSICo employees volunteer. 3. Strategies: As a consumer products company, PEPSICo does not have the major environmental problems of heavy industry. Their biggest environ-mental challenge is packaging generated by their products. Packaging is important to public health and a critical component of the distribution system that delivers products to consumers and commercial establishments. To meet both consumer demand and safeguard the environment, they recycle, reuse and reduce packaging wherever possible. Each business is also committed to responsible use of resources required in manufacturing their products. Continually fine-tuned to address the opportunities and risks of the global marketplace. Concentrate our resources on growing our businesses, both through internal growth and carefully selected acquisitions. Company developed its traditional products and expanded into low-fat and no-fat snacks as well as salsas and dips. 4. Policies: Employee networks to mentor and support minority & female employees. Actively and diligently seek out qualified M/WBEs for all possible company requirements.

 Make every reasonable effort to help qualified M/WBEs to meet company standards. Respect the privacy of all visitors who access and use the companys corporate Web site Treating all customers with respect, sensitivity and fairness, while providing some of the greatest products on earth. We respect individual differences in culture, ethnicity and color. PEPSICo is committed to equal opportunity for all employees and applicants. Corporate program for training employees how to work and manage in an inclusive environment. II. STRATEGIC MANAGERS A. Board: Roger A. Enrico, 56, is chairman of the Board and CEO. Mr. Enrico was elected as PEPSICos CEO in April 1996 and as Chairman of the Board in November 1996, after service as Vice Chairman since 1993. Enrico, who once wanted to be an actor, understands that great marketing is pure theater. In his 29 years at PEPSICo (PEP), he has staged some of marketing's most spectacular productions. ''Coke's leadership tried to put us out of business,'' he says flatly. ''But we did not look for a temporary boost or a short-term gain despite the self-destructive business philosophy by our major competitor. We've been honed by fire.'' He spun off PEPSI's capital-intensive bottling operations into an independent public company. He spent $3.3 billion to acquire Tropicana, the leading orange juice brand. Indra K. Nooyi, 45, is a Senior Vice President and CFO. She joined PEPSICo in 1994 as Senior Vice President, Corporate Strategy and Development. Prior to joining PEPSICo, she was Senior Vice President of Strategy, Planning and Strategic Markets for Asea Brown Boveri. Nooyi is responsible for corporate staff functions, including legal, human resources and corporate communications, in addition to her current CFO duties overseeing finance, strategic planning, mergers and acquisitions, information technology, advanced technologies and procurement. She is also known in company circles for her analytical abilities, a key component behind her rise. Nooyi, whose remuneration for fiscal 1999 totaled more than $1 million, is also believed to be the chief strategist behind PEPSICo's competition with rival Coca-Cola. Steven S. Reinemund, 52, is President and Chief Operating Officer. Mr. Reinemund was elected President and COO in September 1999. He began his career with PEPSI as Senior Operating Officer of Pizza Hut, Inc. Peter A, Bridgman, 48, is Senior Vice President and Controller. Prior to assuming his current position, Mr. Bridgman was Senior Vice President and Controller of The PEPSI Bottling Group and he was the Senior Vice President and Controller for PEPSI-Cola North America from 1992 until 1999.

Matthew M. Mckenna, 50, is Senior Vice President and Treasurer. Previously, he was Senior Vice President, Taxes. Prior to joining PEPSICo in 1993 as Vice President, Taxes, he was a partner with law firm Winthrop, Stimson, Putnam & Roberts in New York. B. Top Management: The top one of fifty most talented executives of the company, Roger A. Enrico, demonstrates his excellent ability of leadership as representing the company to show the Wall Street that PEPSICo can deliver superior performance quarter after quarter. One of Enrico's top priorities is to attract more investors into the stock. In international markets, Enrico still faces several obstacles in building PEPSI's soda business; however, he builds up his strategy to place his biggest bets on developing markets, such as India, China, and Russia. ''The key thing is not to merely plant flags,'' says Peter M. Thompson, CEO of PEPSI-Cola International. ''It's to make sure you build a business, customer by customer, block by block, day by day.'' In India, where per capita soft drink consumption is seven servings a year, vs. more than 700 in the U.S., and where deliveries are often done on three-wheel bicycles, PEPSI finds the most prominent businessman in each town and gives them exclusive distribution rights, tapping their connections to drive growth. Over the past five years, volume has risen at a 26% annual clip. PEPSI has stolen 19 points of market share from Coca-Cola, bringing PEPSI's share to 47%, close to Coke's 52%. III. EXTERNAL ENVIRONMENT A. Societal Environment: 1. Economic Factor: The key elements taken into consideration are the principal market risks, which PEPSICo is exposed to interest rate, foreign exchange rate and commodity prices. These are specified as : (a) Interest rate on PEPSICos debt as well as it short-term investment portfolio: PEPSICo can manage its overall financing strategies in term of balancing investment opportunities and risks. The company is using interest rate and currency swaps to effectively modify the interest rate in order to reduce the overall borrowing costs. (b) Foreign exchange rate and other international economic conditions: Operating in international markets involve exposure to movements in currency exchange rates, which typically affect the economic growth, inflation, interest rate, government actions and other factors. Once these changes occur, they will cause PEPSICo to adjust its financing and operating strategies. Changes in currency exchange rates that would have the largest impact on translating PEPSICos international operating profit include Mexican peso, British pound, Canadian dollar and Brazilian real. Through years, macroeconomic conditions in Brazil, Mexico, Russia and across Asia Pacific have adversely impacted on

PEPSICos operations. Especially, the economic turmoil in Russia which accordingly resulted in the devaluation of the ruble in 1998 caused the significant drop in the soft-drink demand. (c) Commodity prices that affect the cost of raw materials: PEPSICo is subject to market risk with respect to commodities because its ability to recover increased costs through higher pricing will be limited by the competitive environment in which it is operating. 2. Technological Factor: Development of additives such as sugarless sweeteners, caffeine free products, and new flavorings enables PEPSICo to provide products that meet changing customer tastes and preferences. In addition, computerized manufacturing technologies are great contributions to higher efficiency and quality in bottling operations. For PEPSI, a critical business challenge is ensuring that the distribution processes can deliver the right products to the right place at the right time. According to Jerry Gregoire, Vice President, Information Services, The competitive advantage will go to the company that can apply technology to areas such as logistics, getting costs out of the distribution pipeline and getting products into the stores less expensively while increasing the availability of sales information. PEPSI NAs data communication network is an important element in the companys efforts to address sales and distribution challenges with technology. Connecting nearly 330 manufacturing, distribution, and sale sites around the U.S. and Canada, the PEPSI NA network transports data help management in controlling inventory. For instance, sales data helps managers identify regions where certain products are not selling well, and move any excess inventory to areas where those products are in demand. Sales data also helps PEPSIs managers make decisions about products before they reach the freshness date and must be pulled from the shelf and discarded. 3. Political/Legal Factors: (a) The Human Right Issue: Few years ago, PEPSICo did business in Burma (Myanmar) under the brutal SLORC regime, the State Law and Order Restoration Council. As the SLORC moved to attract international investment, two millions people have been forced to work for no pay under brutal conditions to rebuild Burmas long neglected infrastructure. What PEPSICo did at the time was patronizing the SLORC regime in what they called rebuild the countrys infrastructure. PEPSICo also said it helps the economy by buying "products such as mung beans, sesame seeds and rattan from small, local farmers." The issue addressed is whether these products were made by forced labors. In fact, PEPSICo must export their products for hard currency because it cannot use Burma's nearly worthless currency to buy imports of supplies for its bottling plants. As the result, PEPSICo had lost contracts at Harvard, Stanford, Colgate and other universities because it refuses to name the sources of these farm products. (b) FDA Regulation: As a food product manufacturer, PEPSICo is under the control of the Food and Drug Administration. For example, the FDA tests and certifies new ingredients such as high-intensity sweeteners before they are allowed to be used in soft drink production. (c ) Waste Management and Public Concerns: Growing environmental awareness is leading to

increasing legislation. The companys operation is affected by federal legislative proposals that address the four objectives: - Minimize the quantity of packaging material entering the nations solid waste system - Minimize the consumption of scarce natural resources - Maximize the recycling and reuse of packaging materials - Protect human health and the natural environment from adverse effects associated with the disposal of packaging materials. For example, Connecticut has already passed a law that regulates packaging to increase its recyclability. 4. Socio-cultural Factor: Consumers today are not as much joyous to cola products as they were before. Age and ethnicity are two main characteristics that affect consumer preference for soft drinks and alternative beverages. With age, health concerns become more of a factor when choosing a beverage. To illustrate, some studies show that cola products or soft drink in general may cause kidney stones and other related diseases. In contrast to older consumers, younger consumersparticularly teens and those in their twentieshave less attention spans for products and are more likely to prefer products that seems to be fun and different . Although PEPSICo is the number one seller in carbonated beverages, it lost is market share in 2000 as consumers seek for alternative beverages. As the matter of fact, PEPSICo switches to non-cola products such as bottle-water, ready-to-drink tea and sports drinks. In turn, bottled water gained the market share up to 12.8% in unit sales. B. Task Environment: 1. New Entrants: It is important when PEPSICo can identify what costs potential entrants to enter the soft drink industry. The production technologies required for manufacturing soft drinks is widely available for the potential entrants. However, competing on a national or global scale requires the ability to manufacture and distribute a well-recognized brand. Therefore, not only PEPSICo is the one who have to spend a tremendous fund on advertising campaigns, other companies such as Coca-Cola and Cadbury Schweppes have to go on the same path. According to the Beverage Industry, PEPSICo had a great number of commercials during the super-bowl. Coca-Cola Co., PEPSICo, and Cadbury Schweppes spent a total of $469.1 million on media advertising in the U.S. market between January and September 1996. Will new entrants be able to spend a tremendous amount to advertise themselves, or in other words, to create their big names in order to deprive the market shares from PEPSICo or Coca-Cola. Another aspect is the distribution challenging in some Asian countries such as China, Indonesia and India, where poor road conditions and other infrastructure problems may prevent the effective delivery

by trucks. The question is whether PEPSICo can have a competitive advantage to overcome these difficulties, then it will be difficult for the new companies who want to distribute their products. 2. Existing Companies: The U.S. and global soft drink industries are quite concentrated. Long dominated by two companies, Coca-Cola Co. and PEPSICo, the industry saw the emergence of a third significant player when Cadbury Schweppes acquired the Dr. Pepper and 7UP brands in 1995. Table below shows that the top three firms accounted for 90% of the U.S. soft drink market in 1998 vs. 2000. The top one is still Coca-Cola with market share of 44% in 2000, next would be PEPSICo with 30.9% share. Dr.Pepper & 7UP goes down slightly in 2000 at 14.4%. There are some changes on market shares to other companies but the changes are not significant. U.S Soft Drink Market Share in 1998 vs 2000 Gallons Market Volume Company Rank Millions(1998) Millions(2000) 1998 Share 2000 Share Coca-Cola Co. 1 6,223.90 4,491.5 43.80% 44.0% PEPSICo Inc. 2 4,370.20 3,157.4 30.80% 30.9% Dr.Pepper&7UP 3 2,060.40 1,473.1 14.50% 14.4% Cott 4 357 300 2.50% 2.9% National Beverage 5 270 214.0 1.90% 2.1% Royal Crown 6 254.6 106.3 1.80% 1.0% Monarch 7 138.5 11.8 1.00% 0.1% Big Red 9 32 26.7 0.20% 0.3% As discussed in Social-cultural Factor part, consumers tastes change over the time. Instead of drinking cola products, consumers switch to water or fruit juices. Competitors may take this advantage to market their products. One example is the agreement between Ocean Spray Cranberries Inc. and Beijing Huiyuan Beverage Group, which is the largest juice company in China. Ocean Spray grants a ten-year license to Huiyuan manufacture, market and distribute its products. 3.Trends: The market for soft drink is expected to grow at a slower rate in the next four years, according to a

series of new global soft drink reports published by Beverage Marketing Corporation. The industry had a five-year compound annual growth rate (CAGR) of 5.0% between 1993 and 1998. But for the fiveyear period from 1998-2003, the CAGR is estimated to drop to about 4%. Although colas are the most important soda flavor on the market, the strongest growth in the industry is in the non-cola segment. IV. INTERNAL ENVIRONMENT A. Corporate Structure PEPSICo owns its corporate headquarters buildings in Purchase, New York. The company is engaged in the snack food, soft drink and juice businesses. Each product category is further divided into North America segmentUS and Canadaand international segment. (PEPSICo 2000 Annual Report) Frito-Lay North America (FLNA) Frito-Lay North America manufactures, markets, sells and distributes salty and sweet snacks. Products manufactured and sold in North America include Lays and Ruffles brand potato chips, Doritos and Tostitos brand tortilla chips, Cheetos brand cheese-flavored snacks, Fritos brand corn chips, a variety of branded dips and salsas and Rold Gold brand pretzels. Low-fat and no-fat versions of several brands are also manufactured and sold in North America. Frito-Lay International (FLI) Frito-Lay International manufactures, markets, sells and distributes salty and sweet snacks. Products include Walkers brand snack foods in the United Kingdom, Smiths brand snack foods in Australia, Sabritas brand snack foods and Alegro and Gamesa brand sweet snacks in Mexico. Many of our U.S. brands have been introduced internationally such as Lays and Ruffles brand potato chips, Doritos and Tostitos brand tortilla chips, Fritos brand corn chips and Cheetos brand cheese-flavored snacks. Principal international snack markets include Mexico, the United Kingdom, Brazil, Spain, the Netherlands, Australia and South Africa. PEPSI-Cola North America (PCNA) PEPSI-Cola North America manufactures concentrates of brand PEPSI, Mountain Dew, Mug, Slice, Fruitworks, Sierra Mist and other brands for sale to franchised bottlers. PCNA also sells syrups to national fountain accounts. PCNA markets and promotes its brands. PCNA also manufactures, markets and distributes ready-to-drink tea and coffee products through joint ventures with Lipton and Starbucks and licenses the processing, distribution and sale of Aquafina bottled water. In addition, PCNA manufactures and sells Dole juice drinks for distribution and sale by PEPSI-Cola bottlers. PEPSI-Cola International (PCI) PEPSI-Cola International manufactures concentrates of brand PEPSI, 7UP, Mirinda, KAS, Mountain

Dew and other brands internationally for sale to franchised bottlers and company-owned bottlers. PCI operates bottling plants and distribution facilities in various international markets for the production, distribution and sale of company-owned and licensed brands. PCI markets and promotes its brands internationally. Principal international markets include Mexico, China, Saudi Arabia, India, Argentina, Thailand, the United Kingdom, Spain, the Philippines and Brazil. Tropicana Tropicana produces, markets, sells and distributes its juices in the United States and internationally. Products primarily sold in the United States include Tropicana Pure Premium, Seasons Best, Tropicana Twister and Dole brand juices. Many of these products are distributed and sold in Canada and brands such as Fruvita, Looza and Copella are also available in Europe. Principal international markets include Canada, the United Kingdom and France. B. Corporate Culture PEPSICo, Inc. has been systematically changed over the past two decades from passivity to aggressiveness in order to avoid stagnation and to adapt to changing competitive threats and the changing economic or social environments. Once the company was content in its number two spot, offering PEPSI as a cheaper alternative to Coca-Cola. But today, a new employee at PEPSICo quickly learns that beating the competition, whether outside or inside the company, is the surest path to success. In its soft-drink operation, for example, PEPSI's marketers now take on Coke directly, asking consumers to compare the taste of the two colas. The culture of the company now is based on the goal of becoming the number one of soft drinks. Managers are pitted against each other to grab more market share, to work harder and to wring more profits out of their businesses. Because winning is the key value at PEPSI, losing has its penalties. Severe pressure was put on managers to show continual improvement in market share, product volume, and profits. All Employees know they must win merely to stay in place and must devastate the competition to get ahead. To keep everyone on their toes, "creative tension" is continually encouraged among departments at PEPSI. The staff is kept lean and managers are moved to new jobs constantly, which results in people working longs hours and engaging in political maneuvering just to keep their jobs from being reorganized out from under them. C. Corporate Resources 1. Marketing:

 PEPSI has now beaten Coke in the domestic take-home market, and it is mounting a challenge to Coca Cola overseas. PEPSI has been making inroads: Besides monopolizing the Soviet market, it has dominated the Arab Middle East ever since Coke was ousted in 1967, when it granted a bottling franchise in Israel. The companys products are transported from manufacturing plants to its major distribution centers, principally by company-owned trucks. The company utilizes a direct store delivery system, whereby its sales force delivers the products directly from distribution centers to the store shelf. This system permits the company to work closely with retail trade locations and to be responsive to their needs. The company believes this form of distribution allows it to have a marketing advantage and is essential for the proper distribution of products with a short shelf life. PEPSICo has developed the national marketing, promotion and advertising programs that support the its many brands and brand image, oversee the quality of the products; develop new products and packaging, and coordinates selling efforts. (PEPSICo 2000 Annual Report) 2. Finance: PEPSICo, Inc. manufactures, markets and sells soft drinks and concentrates (PEPSI-Cola, Mountain Dew, Slice, etc.), snack foods (Frito-Lay) and Tropicana branded juices. For the 12 weeks ended 3/24/01, net sales increased 8% to $4.54 billion. Net income increased 18% ($498 million). Revenues benefited from volume gains across all divisions. Net income also reflects an increased gross profit due to higher effective net pricing. Even though sales of PEPSICo were going down slightly on the last three years but they still have very high profits on that years. On the Ratio PEPSICo just only 33% on debt/equity ratio and profit margin is 10.9 compare with industry just only 8.10%. On the first quarter of this year net sales advance 8% to over $4.5 billion with earnings per share increasing 17% to $.34. PEPSICo is very strong revenue growth. EPS grows 15% in the 16-week quarter to 38 cents, and 17% for the 52-week year to $1.45 Each division boosts Q4 volume, and gains market share for the year Net sales advance 8% to over $6 billion for the quarter, annual sales grow 8% and exceed $20 billion Every division posts double-digit operating profit growth in the quarter, annual operating profits advance 13% to $3.5 billion Operating cash flow grows 33% to $2.7 billion Return on invested capital (ROIC) improves to 23% -- a 250 basis point increase 2 001 outlook for continued double-digit earnings growth

3. Operations: Most of the sales are through the companys own direct store distribution (DSD) systems, where they actually take the products to stores and put them on the shelf. These systems reach hundreds of thousands of outlets, from the tiniest liquor stores to the mightiest club store. The DSD systems give the company the ability to merchandise its products for maximum appeal to consumers. PEPSICo has been adding new platforms for growth, which strengthen the companys portfolio and enhance its vitally important innovation capabilities. For example, in January 2001 the company acquired a majority of the South Beach Beverage Company, whose SoBe line of drinks adds to the PEPSI-Cola portfolio some of the fastest-growing brands in the fastest-growing segment of the industry, non-carbonated beverages. Another example is the planned merger with the Quaker Oats Company, which is expect to complete in the second quarter of 2001. This is without question the biggest step to ensure a bright future of growth for PEPSICo. The merger will make PEPSICo an even more effective competitor in the expanding market for convenient foods and beverages. It will add two very powerful brands to its portfolio, Gatorade and Quaker, and create new opportunities for every PEPSICo division. The combined enterprise will rank among the world's five largest consumer product companies. PEPSICo bought $383 million worth of goods and services from minority-owned and women-owned suppliers in the year of 2000. The Women's Business Enterprise National Council named the company among America's Top Corporations for Women's Business Enterprise. PEPSICo minority and women business development programs were rated among the top-10 nationally by the National Minority Supplier Development Council. We were named by Fortune magazine to its list of America's "50 Best Companies for Minorities," by Hispanic magazine to its list of "The Hundred Companies Providing the Most Opportunities to Hispanics," by Latina Style magazine to its list of "The 50 Best Companies for Latinas," and by Minority MBA magazine to its list of "Ten Top Companies for Minority MBAs." The company encourages conservation, recycling and energy use programs that promote clean air and water and reduce landfill. Last year, the Occupational Health and Safety Administration named two more PEPSICo facilities to its top "STAR" status as part of the agency's Voluntary Protection Program. 4. Human Resources: The company has a wealth of talent across the corporation. It starts with its exceptional frontline team, the people out there serving the customers 365 days a year, and it extends to our corporate staff. The company not only has great opportunities, but the skills, experience, dedication and intellectual horsepower to make the most of them.

 The companys continued growth has created outstanding career opportunities for talented professionals in a variety of specialized fields, such as information technology, treasury, tax, human resources, law, accounting, public affairs, audit. All successful applicants share a commitment to PEPSICo's goals and an ability to thrive in a fast-paced, results-oriented environment. In exchange, the company offers a highly competitive compensation and benefits package. PEPSI executives are expected to be physically fit as well as mentally alert: PEPSI employees four physical-fitness instructors at its headquarters. It is an unwritten rule that to get ahead in the company a manager must stay in shape. The company encourages one-on-one sports as well as interdepartmental competition in such games a soccer and basketball. 5. Information Systems: In responding to market demands for efficient 24-hour "order-to-delivery" process for customer orders, PEPSICo has installed a computer system that links an effective wide area network that allows immediate transmission of customer orders. The outcome has been to integrate with a wide area network, transmit accurate, complete customer order data, allowing the company to more efficiently load trucks, schedule deliveries and save manhours. V. ANALYSIS OF STRATEGIC FACTORS A. Key strategic factors are: 1. Recyclability of Containers Due to the liquid nature of PEPSIs product, it is necessary that a solid and non-porous container be used to store the product. This fact leads to the use of plastics, aluminum, and glass as materials for the containers that PEPSI is stored in. These materials work very well for the purpose of their use, however these materials do not biodegrade easily. Every day, 93 million empty soft drink bottles and cans are thrown away, rather than recycled. In November 2000, the boards of PEPSI and Coke passed resolutions for future container recycling targets. The resolutions call upon management to establish recycling targets and prepare a plan to achieve them by January 1, 2005. There are two goals: (1) achieving an 80 percent national recycling rate for bottles and cans; and (2) making plastic bottles with an average of 25 percent recycled plastic. The implementation of these resolutions will have a future effect on the cost basis of PEPSIs product, and a positive environmental impact if the recycling targets are met. 2. Continued growth to other segments, decline of cola interest The beverage industry is moving towards the alternative drinks sector. Although in recent times, mainstream beverages have been making a revival, it is obvious that alternative drinks will continue to grow. PEPSI can utilize its excellent brand recognition and reputation to invest in and capitalize on

growth in this area, and increase it market share against Coca-Cola at the same time. 3. Increased use of exclusivity agreements with restaurant chains and college campuses Coca-Cola has a majority of exclusivity with restaurant chains including McDonalds and other major fast food chains. The benefits of exclusivity agreements give Coca-Cola a major advantage in channel distribution. The major reason Taco Bell was purchased by PEPSI was to create a new channel for PEPSI to be sold in restaurants. In addition to restaurants, soft drink manufacturers are willing to engage in "cola wars" to win the rights to supply all the machines in a given school in return for a commission. The funds go to support financially starved school programs that could range from buying new library books to beefing up the computer lab. 4. Coca-Colas market dominance The dominance of Coca Cola in the soft drink market has always been considered a major factor for PEPSI management. As long as Coca Cola continues to retain a dominant market share, PEPSI should continue to aggressively acquire Coca Cola market share. 5. Excessive work pressure resulting in exodus of PEPSI management The creative tension which is constantly being placed on PEPSI management has resulted in a number of management leaving the company for Coca Cola. Coca Cola has consistently been able to acquire the PEPSI Tigers, or very good managers, away from PEPSI. B. Evaluation of the current mission and objectives 1. Mission The overall mission of PEPSICo is to increase the value of shareholder's investments. This is achieved through sales growth, cost controls and wise investment of resources. PEPSICo believes that their commercial success depends upon offering quality and value to their consumers and customers; providing products that are safe, wholesome, economically efficient and environmentally sound; and providing a fair return to their investors while adhering to the highest standards of integrity. 2. Objectives a. Concentration of resources on growth of businesses through internal growth and carefully selected acquisitions PEPSICo has adopted a plan for growth by continually addressing the opportunities and risks associated with the global marketplace. The corporation's success reflects their continuing commitment to growth and a focus on those businesses where they can drive their own growth and create opportunities.

b. Contribute to the quality of life in communities PEPSICo believes that as a corporate citizen, it is responsible to contribute to the quality of life in the communities it serves. This policy is implemented through support of social agencies, projects, and programs. The company also supports employee volunteer activities through contributions of time, talent, and funds. Each PEPSICo division is responsible for its own giving program with corporate giving focused on supporting employee volunteer activities. VI. STRATEGIC ALTERNATIVES AND RECOMMENDED STRATEGY Out of the many strategic alternatives that PEPSICo could choose to follow, we have chosen to endorse one that fosters continued growth and diversification. Although their over-diversified portfolio has hindered their International Growth, these strategies strengthen their overall corporate worth and market presence domestically. As consultants for PEPSICo, we are making the following recommendations: PEPSI should focus on increasing sales globally to compete effectively with Coke. They have been beaten badly in some markets, and need to focus more on "un-tapped" areas. Continue to diversify their beverage selection through acquisitions. This will enable PEPSICo to combat the decreased interest in cola. Going along with this, PEPSICo needs to ensure that they can properly manage all of these acquired companies and should divest those that show limited potential. Increase the use of exclusivity agreements to boost their sales in key markets. This may make it harder to keep costs low but will ensure added revenues. Another reason why Coke has continued to beat PEPSI is through its exclusivity agreements with restaurant chains, sports and entertainment complexes, and college campuses. More attention in this area will help to battle Coke's dominance. Capitalize on their aggressive corporate culture in overseas dealings. This can help to combat the weakness of their current international strategies. SWOT STRENGTH ,WEAKNESS,OPPURTUNITY THREATS PIECHART OF FIZZY SOFT DRINK

Market segmentation of softdrink industry:The following major segments of the soft drink drinkers have been identified: 1. Fashionable brand conscious consumers: This segment of people are generally in their twenties, who are uni students or make up the working class, drive fast cars(or would like to ) they socialize with friends and go to parties and dance clubs. They are carefree and are freestyle. When they buy this product, they buy the image, they buy the fashionable drink that exudes coolness.

2. Average consumers: These people are usually prone to purchase product out of mindless habit. This segment of consumers have successfully been brainwashed to some extent by advertising campaigns and heavy promotions conducted by these companies. Again the age bracket is in the twenties, although teenagers tend to fall under this category. 3. Peer pressured consumers: This segment of the majority teenagers who purchase this product because their friends do it, or they do not want to appear daggy purchasing a local drink. They are less likely to request any ordinary drink while purchasing. 4. Soft drink addicts: This segment usually follows any particular brand that will have nothing other than there preferred brand, no substitutes, no imitations. They are accustomed to the taste, and believe it is the distinct flavour that keeps them buying coke consistently. On the other side, these consumers are addicted to the prizes and competitions offered by these companies, resulting in the purchase of that product SOFT DRINK TARGET AUDIENCE /PROFILE PEPSI SEGMENTING TARGETTING AND POSITIONING Understanding Market Segments and Targets: Building the Right Relationships with the Right Customers PEPSICo Executive Summary This report provides an analysis and evaluation of the Marketing Strategy of PEPSICo. Methods of analysis include Market Segmentation, Market Targeting, Market Positioning, as well as the Marketing Mix of PEPSICo. The research draws attention to the Market Segmentation of PEPSICo. While the soft drink industry has probably the widest and deepest customer base in the world, PEPSI did not use the majority fallacy to market their product. Instead, PEPSI prefers to segment itself as the beverage choice of the New Generation, Generation Next, or just as the PEPSI Generation. These terms adopted in PEPSIs advertising campaigns are what marketers refer to as Generation X, which are profiled to be between the ages of 18 to 29. In addition, PEPSICo also focus on another market, which includes Teenagers that are between the 12 to 18 years old. PEPSI believes that if they can get this market to adopt their product, they could establish a loyal customer in a long run.

Despite being a strong #2 against Coca Cola, PEPSI has become the largest selling soft drink in the world and is liked by people of all ages. A recent survey has shown that about 90% of the world population prefers PEPSI when asked the question of which soft drinks do they prefer. The reason for their linking is because PEPSI is able to give them a higher quality of taste and a large variety of flavors.

INTRODUCTION: PEPSICo is a world leader in convenient snacks, food and beverages with revenues of more than $39 billion and over 185,000 employees. The company consists of PEPSICo Americas Foods (PAF), PEPSICo Americas Beverages (PAB) and PEPSICo International (PI). Besides the PEPSI-Cola brands, the company owns the brands Quaker Oats, Gatorade, Frito-Lay, SoBe, Naked, Tropicana, Copella, Mountain Dew, Mirinda and 7up (outside the USA). PEPSICos products are recognized and are most respected all around the globe. Currently, PEPSICo has divisions which operates in three major US and international businesses: beverages, snack foods, and restaurants. In each of these businesses, PEPSICo has attained a leadership position as being the world leader in soft drink bottling, the world largest snack chip producer, and the world largest franchised and company operated restaurant system. The cooperations increasing success has been based on high standards of performance, marketing strategies, competitiveness, determination, commitment, and the personal and professional integrity of their people, products and business practices. PEPSICos overall mission is to increase the value of our shareholders investments through sales growth, investments and financial activities. PEPSICo believes their success depends upon the quality and value of their products by providing a safe, whole some, economically efficient and a healthy environment for their customers; and by providing a fair return to their investors while maintaining the highest standards of integrity. Market Segmentation As we know that PEPSICo provides varieties of beverages such as carbonated soft drinks, sport drinks, dairy-based drinks, energy drinks, fruit flavored beverages, ready-to-drink coffees, ready-to-drink tea, mineral water and frozen beverage. These products are marketed under brand as PEPSI, Mountain

Dew, Gatorade, Lipton, Starbucks, Tropicana, and so on. With these products, PEPSICo aims to attract different groups of consumers. There are two levels in which PEPSI segments its market: Demographic Niche marketing Concentrated Marketing Despite the large customer base in the Soft Drink industry, PEPSI prefers to segment itself as the beverage choice of the New Generation, Generation Next, or just as the PEPSI Generation. These terms adopted in PEPSIs advertising campaigns are what marketers refer to as Generation X, which are profiled to be between the ages of 18 to 29. In addition, PEPSI shifted its focus to the growing American teenage market in the 1990s by forming exclusive contracts with American schools and developing advertising campaigns such as The Next Generation and the Joy of PEPSI, featuring Britney Spears. PEPSI believes that if they can get this market to adopt their product, they could establish a loyal customer in a long run. Niche Marketing PEPSI focused on varietal differentiation since 1990 by introducing a string of niche products. To increase volume in order to counter flat coca sales, PEPSI introduced Sierra Mist in 2002-2003 to take the place of 7-up and go head-to-head with Sprite. PEPSI has also tried to boost volume by introducing products that appeal to specific target markets that it currently is not reaching. PEPSI has introduced Code Red and Live Wire, extensions of Mountain Dew, PEPSI One, and PEPSI Blue. Finally, PEPSI is countering declining sales of carbonated drinks through the marketing and distribution of Starbucks ready to drink products, and the acquisition of SOBE and Gatorade. The success of PEPSIs Mountain Dew Code Red launched in 2001 was the most successful soft drink innovation in 20 years and has spurred even more niche product introductions for PEPSICo as well as other competitors.

BASES OF SEGMENTATION:

Demographic In focusing on the PEPSI-Cola beverage product, PEPSICo has retained a long history of concentrating on youth as its main target market Generation Next! It has spent billions of dollars in trying to woo the young and nearly young, implying that Coca-Cola is for the older generation. The reason why PEPSI-Cola has fiercely targeted this market is because it is the largest amongst its users. Market segment profiles have shown that the majority of carbonated beverage drinkers are youth and middle age people. Also, PEPSI continually targets the college market in which they spend huge amounts of money to compete with Coca Cola in acquiring contracts with universities (ie: CSUF) to have sold representation of their product distribution. PEPSIs use this behaviorist segmentation has been a key to the companys success. Market Targeting PEPSI customers are mostly Teenagers and Young Adults between the ages of 14 to 30. It also targets at Schools, Colleges, Universities, Homes, Restaurants, Hotels, and Stores. Market Positioning

PEPSICo plans to further create positions that will give products the greatest advantage in their target markets. PEPSI has been positioned based on the process of positioning by direct comparison and have positioned their products to benefit their target market

Marketing Mix of PEPSI: 1.PRODUCT 2. Promotion PEPSICo has advertised its products through many different ways and media. Through TV, we have seen different advertisements of its products such as PEPSI or Dew. PEPSICo also advertise its products by targeting those favorable television programs, like sports, TV series etc. In addition, PEPSICo has also made used of some events like PEPSIfy Karogey? to promote its products. Through newspapers like Jung and Dawn, PEPSICo has advertised a wide range of products it offers to its customers. The usage of Posters are also used to create awareness of the products that PEPSICo offers. 3. Place Decisions with respect to distribution channel focus on making the product available in adequate quantities at places where customers are normally expected to shop for them to satisfy their needs. PEPSIs supply is low uncertainty. Some of its supply source capabilities are: Less breakdowns High quality Flexible supply capacity Mature production process Venues where PEPSI is sold off-site consumption include grocery stores, convenience stores and vending machines. However, PEPSI is most effective in grocery stores where it has 33% market share. This is contrary to the fountain station channel, where PEPSI has less than half the market share. Price PEPSI being a company that emphasizes on product quality tends to sell its products with price range from moderately low to high prices, depending on the use and the targeted customers.

5. Consumer Solution PEPSICo offers a wide variety of products that ranges from Energy drinks, Tea, Water, to Carbonated drinks. Each variety aims to meet the needs of different consumers of different demographics. For example, Energy drinks such as Gatorade are catered for athletes whereas Tea such as Lipton Iced Tea aims to provide quality taste for regular consumers. Therefore PEPSICo is able to reach a large group of customers from different demographics because of its product variation. 6. Customer Cost Despite the fact that PEPSICo frequently lowers its price and eventually raises its price again, buyers have not been affected by this pricing strategy. On top of that, PEPSI has always been very flexible and reasonable with its pricing strategy. Depending on the product, prices are ranged from moderately low to high. 7. Convenience As PEPSICo products are readily found in Supermarkets, Convenient Stores and Vending machines, it is very accessible and convenient for consumers to purchase these products. Especially so for Vending machines, which can be found in most buildings or public places. 8. Communications Through various medium of Advertising such as TV advertisements, Posters, Newspapers and Events, customers are aware of the different ranges of PEPSICo products. PEPSICo has also made used of several celebrities such as Britney Spears to market its product. This creates a perception of a young and cool image for the brand, which is easy for PEPSICos target market Teenagers and Young Adults, to identify.

PRICE OF THE PRODUCT = Rs 25,Rs38,Rs 65 Conclusion PEPSI has been successful in generating profits in this extremely rivalries industry. What the company should do now is employ a strategy that now only addresses its own deficiencies in an effort to grow market share, but one that will increase the overall size of the pie. This strategy, in the end, will allow PEPSI to grow and sustain above-average return

PICTURE OF THE PRODUCT ADVERTISED

Conclusion (Research) :- After this research I came to conclusion that pepsi is using blue color in it, the ads of pepsi are mostly linked with the cricket and endorsed by the celebrity. I also came to know that pepsis main rivals in the market is coca cola and it is using vector graphic to promote their product. The research above shows that pepsi is globally accepted soft drink , it is mainly used in celebration ,fun ,party.etc. As it is globally accepted and fun I want to use the flag of different country and link it with the pepsi and fun to create print ad of the product.