Dhiren Haria Hiren More Jay Sangani Priyank Shah Vishal Shah Harmesh Trivedi
A017 A029 A041 A043 A044 A050
Part Time MBA Division “A” Group No.09 1st Year- Trimester III
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.
INTRODUCTION 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.
PRODUCT OFFERING BY PepsiCO
4/24/2013
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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
Segment
People who want to have between meal snacks
Target Group
Youth of Lower, middle income
Positioning
People who are successful yet are down to earth
SWOT ANALYSIS Strengths
Well establish network Strong PepsiCo Brand recognition Prior experience in the Snack industry worldwide Loyal Customers Opportunities Changing life styles Market Globalization Innovative Marketing to increase Brand Awareness Few Organized players More Flavors as compared to Bingo
S W O T
Weaknesses Expensive compared to regional players Seasonal availability of Raw materials Health conscious people avoid high fat & cholesterol in potato chips Threats Availability of healthy products from competitors Regional & Unorganized players posing threat Impulse purchase product, brand switching and flavour fatigue is high
PRODUCT STRATEGY Lay‟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 STRATEGY Introduced 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.
