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Product Assortment- Case Study Pepsi
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PRODUCT ASSORTMENT
PEPSICO. LTD
Submitted By;
Koyel Chakraborty 12
Rakshit Patel 23
Ravi Sharma 24
Tathagat Mahajan 31
INTRODUCTION
PepsiCo incorporated in 1965 with the merger of the Pepsi-Cola Company and Frito-Lay, Inc.
PepsiCo, is a Fortune 500, American global corporation headquartered in Harrison, New York, with interests in the manufacturing, marketing and distribution of grain-based snack foods, beverages, and other products.
19 of PepsiCo's product lines generated retail sales of more than $1 billion each, and the company’s products were distributed across more than 200 countries, resulting in annual net revenues of $43.3 billion. Based on net revenue, PepsiCo is the second largest food & beverage business in the world.
PRODUCT ASSORTMENT WIDTH----------Water drinks
CSD Energy drinks
Soft drinks
Sports drinks
Juice drinks
Snacks
Aquafina Mug Bear AMP Energy
Pepsi Gatorade Dole juice Lays
Ethos water
Tava No Fear 7 up Thirst quencher
Ocean spray
Kurkure
Profel Sobe essential energy
Mirinda G2 Tropicana juice
Cheetos
Fitness Water
Mountain dew
Slice Doritos
Sobe Life Water
Diet Pepsi Munchies
Pepsi Blue
Crystal Pepsi
PRODUCT CUSTOMERS INFLUENCER
CARBONATED DRINKS YOUTH’S CELEBRITES, PACKAGING, BRAND LOYALTY , ADS
SNACKS CHILDRENS & YOUTHS FLAVOURS, TASTE & RECREATIONAL TIMES
JUICE DRINK ALL AVAILABILITY, BRAND LOYALTY ,TASTE
PACKED WATER EXECUTIVES,MEDIUM &HIGH CLASS & TRAVELLERS
HEALTH ISSUES, BRAND
ENERGY DRINKS SPORTSMEN ICONS, NUTRITION , ENERGY &COMPETITORS
CUSTOMER & IT’S INFLUENCER OF PEPSICO
FIVE PRODUCT LEVELS
•Each additional layer adds cost•Augmented benefits could become Expected benefits•Augmentation could lead basic benefit segments vacant•Applicable to most, if not all, products
Core benefit - Thirst & refreshment
Analyzing the Five Product Levels – PEPSI
Basic Product – carbonated drink & taste
Expected product – hygien, safe consumption, nutritious & quality
Augmented product – easy to open & more variety(flavors)
Potential product – gifts, price discount & offers
PRODUCT LINE LENGTH MANAGEMENT
1. Line stretching Upward-Pepsi, Frito Lay, Pepsi max, Pepsi
Lite Downward- Chesters, Twister Two Way- King Vitamin & Spuds(north
&South)
2. Line filling (each item should produce a just noticeable difference)
7up, Mirinda, Tropicana, Slice, Mountain dew,
Quake
3.Line modernization My can, Tin(beverage), Naked juice, Meat
sticks (Frito lay)4.Line Pruning All Sport, Crystal Pepsi, Pepsi blue, Pepsi
edge, storm, KFC, Pizza hut, Mr. green, Matika
OPTIONS FOR GROWTH
Increase Market Share
Introduce New Products
Move into New Markets
Diversify into non-beverage markets.
OPTIONS FOR GROWTH
Market
Grow
th
Market Share
Increase Market Share
OPTIONS FOR GROWTH
New Products
Old Products
Old Markets New Markets
Introduce New Products
Move into New Markets
Diversify
ADVERTISEMENTS
DIVERSIFICATION
• Pepsi has no other option than to diversify into non-beverage markets.
• Diversify into products that complement Pepsi’s beverage offerings.
• Diversification will create secondary business units that can help Pepsi to increase revenues.
• Opportunities to enter markets not dominated by a few big companies.
ICE CREAM
DAIRY PRODUCTS
COFFEE & TEA ETHNIC FOOD
CONDIMENTS GOURMET
CONFECTIONARIES
HOTEL / RESTAURANTS
OTHERS….
• Frozen food • Nutraceuticals• Ready to eat • Spices & seasonings• Snacks foods• Low crab
BRAND ISSUES
PESTICIDE RESIDUES ISSUE
5 August report of the Centre for Science and Environment, New Delhi. A CSE test found 12 soft-drink brands of Coke and its global rival Pepsi contained pesticides and insecticides in excess of the European Economic Commission’s limit. The Parliament’s immediate reaction: ban on the brands on its premises.
POLLUTION
On 6 August, Kerala State Pollution control Board had confirmed that pepsi’s bottling plant had indeed been polluting the groundwater and agricultural land in and around its Palakkad plant.
DEPLETION OF GROUNDWATER LEVEL
Pepsi removing 1.5 million of water daily, for its products like soft drinks, mineral water , etc. through its deep wells.This creats problem of depletion of ground water level in Kerala, Maharashtra, West Bengal.
CONTRACT FARMING ISSUE IN KARNATAKA
In contract farming in karnataka region Pepsico provided seeds to farmer,then after the attack of late blight the quality of potato get reduced so pepsico didn’t purchased such potato this leads some imbalances between farmer and company.
THANK YOU
CHEER’S