Part Time MBA Division “A”

Group No.091st Year- Trimester III

Dhiren Haria A017Hiren More A029Jay Sangani A041Priyank Shah A043Vishal Shah A044Harmesh Trivedi A050

CONTENT

Introduction on PepsiCo India

Product Offerings

Market structure

Market segmentation - STP analysis

SWOT analysis

4Ps Marketing Mix

Recommendations & Conclusions

INTRODUCTION

PepsiCo is an American New York-based global corporation that manufactures and markets grain-based snack foods beverages and other products. It was found in 1965 with the merger of Pepsi Cola and Frito Lay's

No.1 food & beverage business in India

PepsiCo is the largest player in the snack category and plans to grow in some of its stronger brands including Lay’s, Doritos, Fritos, and Cheetos.

PepsiCo India has not only grown to become the country’s largest food and beverage business but has also become a powerful and consistent driver of PepsiCo’s global growth.

India's beverage and foods businesses have been the largest volume growth contributors to PepsiCo across the globe.

PepsiCo India has been frequently recognized for its industry-leading human resource practices, ‘indovations’, corporate values, and talent, and was one of the five top marketers of the country in 2009.

INTRODUCTION

PRODUCT OFFERING BY PepsiCO

04/08/2023 5

MARKET STRUCTURE

The size of the Wafer Snacks Segment in India is estimated to be Rs. 5000 crores.The market is growing at 25-30 percent annually

The branded players account for around Rs. 2,500 crores of the market size

Major branded players include Frito-Lay, Bingo, Haldiram, Balaji, Parle

Potato Chips and Potato based items account for 85 percent of the total snacks segment.

MARKET SHARE Frito-Lay

As per Nielsen Audit, in 2011, Frito-Lay's share in the Rs. 2500 crore organised snack market in India was 58%

S T P Analysis

SegmentPeople who want to have

between meal snacks

Target Group

Youth of Lower, middle income

PositioningPeople who are successful

yet are down to earth

W

Weaknesses Expensive compared to

regional players Seasonal availability of

Raw materials Health conscious people

avoid high fat & cholesterol in potato chips

TThreats Availability of healthy

products from competitors Regional & Unorganized

players posing threat Impulse purchase product,

brand switching and flavour fatigue is high

StrengthsWell establish networkStrong PepsiCo Brand

recognition Prior experience in the

Snack industry worldwide

Loyal Customers

SOpportunities Changing life styles Market Globalization Innovative Marketing to

increase Brand Awareness Few Organized players More Flavors as compared

to Bingo

O

SWOT ANALYSIS

PRODUCT STRATEGYLay’s is made with India’s best-quality fresh potatoes, cooked in edible vegetable oils, and then seasoned with delicious flavours

Very high quality control and stringent production processes followed to produce high quality chips.

Undergone International Quality control certifications like ISO 14000, HACCP(Hazard Analysis and Critical Control Point) USA, Certification by TQCSI (Australia), American Institute of Baking (USA), OHSAS 18001(Occupational Health and Safety Assessment Series),USA

To address rising health concerns, Frito-Lay potato chips have been manufactured with zero trans-fats and no added MSG

PRODUCT STRATEGYIntroduced many different “Westernized as well as Indian” flavors to cater to urban as well as rural market segment like Classic Salted, American Style Cream & Onion, Chat Chaska, Magic Masala, Tangy Tomato, Mastana Mango

To cater to health conscious market, Lay's India recently launched new “Lay's Baked” range with 50 percent less fat.

PRICING STRATEGY

Frito Lays goal is to provide good quality snack at fair prices so as to attract customers.

Since the potato chips market is driven by high impulsive buyers, there is very little scope of different pricing strategies by market players.

Prices consistent and comparable to competitors and are generally inexpensive.

Introduced SKU’s priced at Rs.5, Rs.10 and Rs. 20

PLACE STRATEGY

PepsiCo has a well-established network Pan-India

30 CFAs, 2 RDCs, 800 distributors , 4 lakh retailers

Over 1 million retail outlets in over 100 towns/villages

Lay’s are basically sold everywhere including railway canteens, gas stations, colleges, groceries, supermarkets, convenience stores, amusement parks, movie houses and even schools

PLACE STRATEGY

Lays displayed at a small Chai waala shop on a hill station

PROMOTION STRATEGY

Frito Lay's roped in various brand ambassadors like Saif Ali Khan, Dhoni to promote Lays with tag lines “No One can eat just one” and “Be a little Dillogical”

PROMOTION STRATEGY

Free samples for new flavors launched

Displays before check-out line in the store

Eye-catching displays with special shelves for Lays chips at retail stores are also one of their strategies.

PROMOTION STRATEGY

Use of online media like Orkut, Facebook to promote Lays brand and its offerings.

RECOMMONDATION

Frito-Lay is unruffled. it has already taken the “health positioning” into account. “They have been innovating continuously in the health and wellness area under our "snack smart" programme.

They have ensured that Lay’s offers consumers great tasting chips made from the freshest, best quality natural potatoes, made from best quality seasonings which contain zero MSG, and are cooked in rice bran oil (40 per cent less saturated fat) and contains zero trans fats,"

CONCLUSION

In sum, Frito Lay's products are made available to the general public through various, integrated marketing initiatives.

Its value proposition of bold flavor and loud image, coupled with competitive prices, is the marketing drivers behind Frito Lay's.

Frito Lay's boasts for its wide array of snack foods and dips that complement the needs and lifestyle of the target segments that demand for convenience and foods on the go.