how pepsi entered indian market and problem itfaced by

1. Faculty : Dr. Archi Mathur Killing Softly Group Members : Harish Choudhary Preeti Nayak Priyanka Agnani Neeraj Paliwal Roll No-244,246,247,252 CASE STUDY

2. Facts of the case Facts of case

4. Coke outsells Pepsi.

7. The first national cola drink to pop up was Double Seven.

8. In 1980 another cola drink, Thumps Up was launched by Parle .

9. Thrill by Mc Dowell's in mid eighties and by the late eighties there was Double cola .

10. The Indian soft drink industry was estimated to be 900 crores.

12. The proposal involved:

13. Export of fruit juice concentrates from Punjab in return for the import of cola concentrates.

14. The deal offered was 3:1 export import ratio.

15. Therefore second bid was widened to take in a food processing division.

16. Acceptance of the Pepsi Offer in India in 1990:

17. Export import ratio was finally fixed at 5:1

19. COMPETITORS

20. Collabration

21. Suppliers

22. Customer

24. Legal Environment

25. Economic Environment

26. Social Environment

28. 2-Legal environment Severe restrictions in equity . To show the results without the soft drink component. Closed economy 3-Economic environment Cold drink industry was in nascent stage Foreign Exchange problem. Lack of adequate market for fruits cultivators

29. 4-Technological environment

30. 5-Social environment

31. Issue-2-How were these elements managed ? MICRO ENVIRONMENT. Competitors Partners / Collaborations Suppliers Customers MACRO ENVIRONMENT. Political Legal Economic Technological Social

32. A-Competitors

33. B-Partners /Collaboration

34. C-Suppliers

35. D-Customers

37. Assurance on meeting export regulations

38. Employment -500-direct and 30000-additional were assured

39. In the revised deal

40. Equity stakes were revised

41. PAIC 40% Voltas -24% ,Pepsi-35%

42. EXIM ratio fixed at 5%

43. Indulged in political lobbying

46. Established collaborations for development of agriculture

47. LEGAL

48. Social

49. Ensured Indianization through Indian version of Pepsi Compliance with legal requirements Fighting out the cases inside as well as outside.

50. Issue-3-what is your learning about “managing the environment”? IDENTIFICATION APPRAISAL ANALYSIS

51. Flexibility –in changing offers . Operating on strength Brand name Soft drink. Going beyond requirement making it look like an initiative.

52. Issue-4-How do you see the emerging environment in the Indian soft drinks market ? Production Market Competition Promotion

53. Production Better & more efficient means of production Introduction of variety of flavours More choices available to the buyers in terms of prodcuts, brands & flovors

54. Market Growth in market size Spread of market of Pepsi Probable entry of Pepsi in fruit drinks

55. Competition Increase in the degree of competition Probable exit of Pure Drinks Consolidation of small players Incoming of more foreign players especially Coke

56. Promotion Exposure to new forms of strategies & techniques Increase in the budgetary allocation to advertisement & sales promotion More aggressive form of promotion to be observed in the market

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