A Study on the Customer Preference of Nimbooz, Kolkata Chapter| Table of Content| Pg. Nos. | Chapter I| Introduction and Literature Review| | | * Introduction to the Topic| 6| | * Introduction to the Industry| 9| | * Introduction to the Company| 25| | * Introduction to Nimbooz| 44| Chapter II| Research Design| | | * Title of the project report| 59| | * Statement of the Problem| 59| | * Scope of the Study | 59| | * Objective of the Study| 59| | * Hypothesis Development| 59| | * Methodology| 60| | * Data Sampling | | | * Sampling Details| | | * Tools for Data Analysis| | * Limitations of the Study| 61| Chapter III| Analysis and Interpretation| 62| Chapter IV| Summary Of Findings| 85| Chapter V| Recommendations and | 86| | Conclusion| 89| | | * Bibliography | 90| | * Annexures| 91| | * Questionnaire| | INTRODUCTION TO TOPIC The beverage industry of India has seen the introduction of new products over the last few years. PepsiCo launched the lime-lemon drink Nimbooz. The drink is an addition to its 7-up category with real lemon juice, no fizz and no artificial flavors. This research is to identify the market performance of one such product that is Pepsi co. s Nimbooz. Market research is any organized effort to gather information about markets or customers. It is a very important component of business strategy. The term is commonly interchanged with marketing research; however, expert practitioners may wish to draw a distinction,in that marketing research is concerned specifically about marketing processes, while market research is concerned specifically with markets. Market Research is the key factor to get advantage over competitors. Market research provides important information to identify and analyze the market need, market size and competition.
Market research includes social and opinion research, and is the systematic gathering and interpretation of information about individuals or organizations using statistical and analytical methods and techniques of the applied social sciences to gain insight or support decision making. The process of market research included – Step 1: Problem Definition The first step in any marketing research project is to define the problem. In defining the problem, the researcher should take into account the purpose of the study, the relevant background information, what information is needed, and how it will be used in decision making.
Problem definition involves discussion with the decision makers and analysis of secondary data. Once the problem has been precisely defined, the research can be designed and conducted properly. Step 2: Development of an Approach to the Problem Development of an approach to the problem includes formulating an objective or theoretical framework, analytical models, research questions, hypotheses, and identifying characteristics or factors that can influence the research design. This process is guided by case studies and simulations, analysis of secondary data and pragmatic considerations.
The issue of how the data should be obtained from the respondents (for example, by conducting a survey or an experiment) must be addressed. It is also necessary to design a questionnaire and a sampling plan to select respondents for the study. Step 4: Data Collection Data collection handing out questionnaires to respondents for study. It involves a certain level of interaction with the respondents. Step 5: Data Preparation and Analysis Data preparation includes the editing, coding, transcription, and verification of data. Each questionnaire or observation form is inspected, or edited, and, if necessary, corrected.
Number or letter codes are assigned to represent each response to each question in the questionnaire. Step 6: Report Preparation and Presentation The entire project is documented in a written report which addresses the specific research questions identified, describes the approach, the research design, data collection, and data analysis procedures adopted, and present the results and the major findings. The findings should be presented in a comprehensible format so that they can be readily used in the decision making process. The project incorporates the analysis of the customer preference of Nimbooz.
The research studies the overall post-launch consumer behavior and analyses the customer preference of Nimbooz. | INTRODUCTION TO THE BEVERAGE INDUSTRY A beverage is a drink specifically prepared for human consumption. Beverages almost always largely consist of water. Drinks often consumed include: Water (both flat or carbonated),Juice based drinks, Soft drinks, Sports and Energy drinks, Alcoholic beverages like beer or spirits ,Coffee, tea ,Dairy products like milk. Filling of beverages can be done cold, hot, ambient and cold-aseptic filling to mention the latest trend of beverage marketing and technology.
The beverage is mainly categorized into two major categories based upon the alcoholic and nonalcoholic nature of the drink: An alcoholic beverage is a drink containing ethanol, commonly known as alcohol. Alcoholic beverages are divided into three general classes: beers, wines, and spirits. They are legally consumed in most countries, and over 100 countries have laws regulating their production, sale, and consumption. In particular, such laws specify the minimum age at which a person may legally buy or drink them. This minimum age varies between 16 and 25 years, depending upon the country and the type of drink.
Most nations set it at 18 years of age. A non-alcoholic beverage is a beverage that contains less than 0. 5% alcohol by volume. Non-alcoholic versions of some alcoholic beverages, such as non-alcoholic beer mocktails, are widely available where alcoholic beverages are sold. Non-Alcoholic beverages are further of two types based upon carbon content. Carbonated beverages which include sodas, soft drinks which are “fizzy” and carbonated under pressure. Non-Carboanted beverages are those that lack any carbon content these beverages include contain Fruit juices, Coffee, Tea and other flavoured drinks like lemonade, gigerale etc.
The beverage market is worth $55 billion worldwide. The tides are turning for many beverage categories. While the carbonated soft drink and beer categories are merely treading water with flat sales, the energy drink category is surging ahead like never before. Bottled water, ready-to-drink coffee, ready-to-drink tea and sports drinks follow close behind with substantial sales increase- drinks without added sugar, no beer, along with developments in juice drinks and dairy-based drinks, are helping to turn around sales in these categories.
What follows is a category-by-category look at the state of the beverage industry, including the top brands, new products, innovations and future trend setters. The above graph shows the relative share of all the beverages worldwide. As shown by the above graph the different beverage sectors can be classified according to importance. THE CHANGING BEVERAGE INDUSTRY In order to be successful in the marketplace, one has to think in terms of health innovation, flavor innovation, ingredient innovation and specific age groups. These are the factors that will shape the future of the beverage industry.
Today’s consumers are concerned with overall health and wellness. As a result, there is significant impact on food and beverage purchases. Many studies have shown that consumers are as concerned with good health as they are about maintaining a high quality of life. Beverage Industry have gone deep into the consumer preferences and tastes. The soft drink industry is training people to seek out new products, even the big companies are coming out with limited-edition flavors, and consumers are beginning to see that there is more flavor activity going on in the category.
Whether that really nets anybody any sales gains is another thing, but it is teaching consumers to seek out and try new products. The beverage industry has grown drastically in the last 10-15 years. Each year the beverage manufacturers turnover increase and they continue to introduce new beverages. The graph shows that the Non carbonated sector is the dark horse which has shown tremendous growth rate from 1997-2010. With health and wellness being major concerns and obesity becoming a global issue, the future of the beverage industry is the non carbonated sector as shown. Packaging Technologies
With the increasing global customer base, beverage retailing is transforming. However, with the move toward globalization, it requires longer shelf life, along with monitoring food safety and quality based upon international standards. To address these needs, nanotechnology is enabling new food and beverage packaging technologies. Applications in nano-enabled packaging span development of improved tastes, color, flavor, texture and consistency of beverages, increased absorption and bio-availability of nutrients and health supplements, new food packaging materials with improved mechanical, barrier and antimicrobial properties.
According to a study by iRAP, Inc. , the total nano-enabled food and beverage packaging market in the year 2008 was US$4. 13 bln, which is expected to grow in 2009 to US$4. 21 bln and forecasted to grow to US$7. 30 bln by 2014, at a CAGR of 11. 65%. Active technology represents the largest share of the market, and will continue to do so in 2014, with $4. 35 billion in sales. In spite of several challenges and restrictions faced by this industry, it is a ‘roll’ like never before. Customer preferences may have shifted, but they are still always on the lookout for a can of ‘coke’ or a new ‘flavored’ drink to quench their thirst
INDIAN BEVERAGE MARKET India has a population of more than 1. 15 Billions which is just behind China. According to the estimates, by 2030 India population will be around 1. 450 Billion and will surpass China to become the World largest in terms of population. Beverage Industry which is directly related to the population is expected to maintain a robust growth rate. The price stability throughout the year has contributed to the increase in domestic liquor sales. India is a booming market for the beverage industry. It already accounts for about ten per cent of global beverage consumption today.
This means that the country has the third-largest beverage consumption after the USA and China. But that is not the end of the road. Market analyses indicate that beverage sales in India will be increasing by more than 60 per cent between 2008 and 2012. Since India is a country of tea and coffee drinkers, packaged cold drinks have enormous potential. Packaged water, beer, spirits and carbonated drinks are recording what rates are in some cases high double-digit growth. All in all, annual per capita consumption of packaged beverages is supposed to triple from 2. 6 litres in 2000 to 8. 7 litres in 2012.
The total carbonated beverages and juices market is estimated at 284 million crates a year. The market is highly seasonal in nature with consumption varying from 25 million crates per month during peak season to 15 million during offseason. REASONS FOR GROWTH: In India, various positive factors drive the beverage markets. One is the rising number of people in the middle class with extra money to spend on new beverages like wine, new brands of imported whiskey, or the fancy energy drinks, some of which are really good to enable people to work longer, to listen longer during conferences, and even to party longer and have fun. Economic drivers: With strong economic drivers of consumer spending, India is a very different market from that of the 1980s or 1990s. With a GDP of USD800 billion and a GDP growth rate in 2005-06 of over 8 percent, India is now the third largest economy in Asia. Average GDP growth of the last 10 years has been 6. 5 percent per annum. And most significantly, the stepping up of GDP growth is driven primarily by domestic demand rather than exports. * Demographic drivers: Macro There are compelling demographic trends in the country that promise new and sustained opportunities for beverage product suppliers who can read right the signals.
The country boasts an expanding middle class that is currently 350 million strong (a population larger than that of the USA or the European Union). The rapid growth in the retail sector (over 20 percent per annum) is a confirmation of the increasing buying power of the middle class. FRUIT BEVERAGE INDUSTRY: The Indian beverage market offers hot options. The fruit beverages industry in India now stands at Rs 1100 crores (approx. Euro 180 million) and the market has grown at the rate of 30%. Part of the industry of fast moving consumer goods is also the beverage industry.
The total beverage industry in India is being estimated to grow at 17% this year, according to experts. Food and beverages segment has not suffered despite the slowdown in the economy. FMCG in stores has done very well. In fact, it registered 10-15% growth in this segment last year. CARBONATED BEVERAGE INDUSTRY Approximately 120 billion liters of beverages are consumed by Indians every year, but only 5% represent store-bought packaged beverages. The majority of Indian consumers (75%) still consume non-alcoholic store-bought beverages less than once a day’, highlighting a large untapped market opportunity, particularly in the carbonated drinks and juice or juice-based categories (estimated to be worth $1. 5 Billion and $. 25 billion respectively). In order to increase consumption and penetration of such beverages manufacturers will have to address the two primary reasons why some Indians abstain entirely, that is, health concerns and undesirable taste Beverage majors like Coca Cola India, for example, again reported growing sales.
Coca-Cola in India reported a solid first quarter 2009 results not only despite a challenging economic environment, but also with unit case volume increasing by 31%. And eight quarters out of the 11 quarters had a double-digit growth. . MILK BASED BEVERAGES Demand for milk and milk-based beverages are also rising. India is the world’s biggest producer and consumer of milk, since milk plays a major role in the Indian diet. The consumption of milk and milk-based beverages has increased by an annual average of 2. 7 per cent in the last four years and most of them (65 per cent) are sold “loose” / unpackaged.
The proportion of the market accounted for by packaged milk and dairy products are increasing, however. In the past four years, for example, demand for milk filled in pouches has grown by 4. 5 per cent annually, while the fi gure for milk in cartons is about 25 per cent. The rising consumption is making it necessary for appropriate investments to be made by the beverage industry. The sector is highly fragmented and 95 per cent of these producers have small or very small operations. Of this, the health beverage industry is valued at $230 million.
The Indian beverage industry faces over supply in segments like coffee and tea. However, more than half of this is available in unpacked or loose form. Indian hot beverage market is a tea dominant market. Consumers in different parts of the country have heterogeneous tastes. The urban-rural split of the tea market was 51:49 in 2000. Coffee is consumed largely in the southern states. The size of the total packaged coffee market is 19,600 tonnes or $87 million. Increasingly packaged coffee is becoming extremely popular and so is the “cafeteria culture” as promoted by Barista and Cafe Coffee Day.
PACKAGED WATER Though not technically a beverage. Packaged mineral water is also considered to be a part os the Beverage Industry. Mineral water market in India is a 65 million crates ($50 million) industry. On an average, the monthly consumption is estimated at 4. 9 million crates, which increases to 5. 2 million during peak season. BEVERAGES FOR HEALTH AND WELLNESS IN INDIAN MARKET The global health and wellness trends in the beverage sector are beginning to notice an increasing level of activity in India.
There is today a growing health and wellness consciousness among consumers and an increasing importance given to fitness and healthy lifestyle choices. Changing work and lifestyle habits leave less time for home cooking and therefore spur demand for convenience and ‘complete nutrition’ from meal replacements. There is a greater inclination to ‘self-care’ rather than ‘medicate’, a greater awareness of the ‘functional’ benefits of health beverages and a greater willingness to pay a premium for such beverages. RESPONSE TO HEALTH AND WELLNESS
With these strong drivers of growth, it is not surprising that the beverage industry in India has begun to respond with products that are marketed clearly on a health and wellness platform. However, to set the record straight, ‘health and wellness’ is not a wholly new platform for the Indian market. India has, for decades, had a thriving health food drinks market. Market leader, GlaxoSmithKline Consumer Healthcare (GSKCH), has had iconic brands ‘Horlicks’, ‘Boost’, ‘Viva’ and ‘Maltova’ create ‘top-of-the-mind’ recall across generations of Indians.
The fact is that there has all along been a strong multinational presence in beverage market and more recently this has been witnessing the emergence of Indian ‘multinationals’ across this sector. However, much of the marketing for health food drinks in the past has been general health and energy positioning, rather than the focus on specific benefits or ingredients that is characteristic of most mature health food markets. This is now changing and the specific initiatives of some companies are going a long way to creating a truly dynamic health and wellness beverage sector in India.
Global market leader in Probiotic fermented milk drinks, Yakult, has teamed up with Danone to start manufacturing its probiotic fermented milk drink in India from 2007. Calcium-fortified beverages are a rapidly growing market. Some examples of brands that have introduced calcium-fortified products are ‘Amul Shakti’, Coca-Cola India’s ‘Mazza’, GCMMF launched sports drink ‘Stamina’ in early 2006. ‘Red Bull’ was launched in India in 2003. Carbonated beverage giants Coke and Pepsi have also planned to widen their product portfolio with ‘health-based’ beverages (non-carbonated).
Pepsi’s ‘Gatorade’ is already on the market. And in what must be among the most significant recent commercialization efforts of a traditional Indian drink, ‘Amul Masti’ Spiced Buttermilk was launched (in a 200 ml tetra pack), marketed on the platform of being free of colour, preservatives, acids and sucrose sugar. SUMMARY: * Indian Beverage Market CAGR[2007-2010]:21% * India ranked 3rd in largest beverage consumption after the USA and China * Total Indian Beverage Consumption every year:120 billion liters * Fruit Beverages Market size: Rs 1100 crores (approx.
Euro 180 million) * Fruit Beverage market growth rate: 30% * Majority of Indian consumers:75% consume Non-alcoholic beverages and 25% Alcoholic Beverages * Carbonated Drinks Market size: $1. 5 Billion * Juice or juice-based Drinks Market size: $. 25 billion * Health beverage industry is valued at $230 million * Indian Beer Market Growth Rate: 7 – 8 % * Indian Beverage Industry is 10% of Global beverage consumption today. * Milk-based beverages consumption has increased by an annual average of 2. 7 per cent in the last four years * Total packaged coffee market size: 19,600 tons or $87 million. The Indian soft drink market is worth Rs. 21,600 million a year with a growth of around 7%. * The total soft drink (carbonated beverages and juices) market is estimated at 284 million crates a year or $1 billion. * Peak season soft drink consumption : 25 million * Off-season soft drink consumption: 15 million * The market is predominantly urban with 25 per cent contribution from rural areas. * Coca cola and Pepsi dominate the Indian soft drinks market. * Indian Mineral water market size : 50 million industry. BARRIERS IN THE INDIAN BEVERAGE INDUSTRY
Despite this flurry of activity, the market is still plagued by low levels of awareness and a lack of sophistication in consumer choices. Price remains a stumbling block. Public concerns over safety and quality of beverages have been aggravated by research findings over alarming levels of pesticide residues in bottled water and soft drinks. Furthermore, there is a lack of detail and clarity in food safety regulation regarding nutraceuticals and functional beverages, and regarding health claims. Within the beverage industry there is inadequate understanding of how to take traditional ingredients into the modern food processing environment.
Finally, the retail sector, despite its growth, is still mostly unorganized and this limits the ability to differentiate health and wellness products through the allocation of exclusive shelf space devoted to this category. OVERCOMING BARRIERS: To overcome these challenges, beverage suppliers need to approach the market with a multi-pronged strategy for increasing penetration. It can be given as follow: * Price resistance can, to some extent, be overcome by moving from ‘imported’ to manufactured in India’ products. For example, imported ‘Gatorade’ cost INR45 per 200 ml bottle.
Now, made in India, it costs INR25. * Substitution or modification is in some ways easier to execute than addition. (Examples of substitution would be herbal tea replacing regular tea or soy milk replacing regular cow’s milk. Examples of modification would be ‘low-fat’, ‘no-fat’, ‘lite’ variants of established beverage brands). * The growing trend towards on-the-go consumption/out-of-home consumption (at the workplace, in schools, colleges and gyms) presents suppliers with new place and form of consumption options (for example, vending machines for dispensing health drinks at schools). Abandoning the ‘one-size-fits-all’ positioning and generic selling points of the past, in favour of targeted and specific messaging based on validated health benefits is likely to be more effective to the better informed middle class today. * Leveraging the intrinsic appeal of traditional Indian ingredients such as ayurvedic, herbal or oleoresin ingredients, but delivered in a modern, safe, convenient and consistent form, or packaging and branding traditional Indian health drinks such as buttermilk and lassi, could create whole new markets that derive their strength from known and trusted traditional ingredients or drinks. In the end, beverage suppliers who unlearn many of the long-held misconceptions about Indian consumers and respond instead to their changing needs and priorities will be best placed to maximize the health and wellness opportunity in this large and growing market LEADING COMPANIES Coca-Cola Company: The Coca-Cola Company (Coca-Cola) manufactures, markets and distributes nonalcoholic beverage concentrates and syrups. The syrups, concentrates and beverage bases for Coca-Cola and nearly 400 other soft-drink brands are manufactured and sold by the Coca-Cola Company and its subsidiaries in nearly 200 countries around the world.
More than 60% of its products are sold outside of the US. It is headquartered in Atlanta, Georgia. The company recorded revenues of $23,104 million during the fiscal year ended December 2005, an increase of 6. 3% over 2004. The company’s net profit was $4,872 million in fiscal year 2005, an increase of 0. 5% over 2004. PepsiCo, Inc. : PepsiCo is a leading global snack and beverage company. The company manufactures, markets and sells a range of salty, convenient, sweet and grain-based snacks, carbonated and non-carbonated beverages and foods.
The company operates in 200 countries besides the US and Canada. It is headquartered in Purchase, New York. The company recorded revenues of $32. 6 billion during the fiscal year ended December 2005, an increase of 11. 3% over 2004. The net profit was $4,078 million in fiscal year 2005, a decrease of 3. 2% from 2004. Parle Bisleri Pvt Ltd : Parle Bisleri is an Indian bottled water company. The group is also involved in the production of fruit juices under the Alfa brand. Bisleri is a brand of bottled water in India. Bisleri has 60% market share in packaged drinking water in India Unilever:
Unilever Group (Unilever) is one of the leading companies in the global fast-moving consumer goods segment. Unilever operates under a dual structure. Unilever NV and Unilever PLC are the twin parent companies of the Unilever Group. Also, Unilever NV, Unilever PLC and their group companies constitute a single reporting entity for presenting consolidated accounts. The group operates primarily in Europe, the Americas, Asia and Africa. It is headquartered in Blackfriars, the UK and employs about 206,000 people. The group recorded revenues of $49,310. million during the fiscal year ended December 2005, an increase of 2. 9% over 2004. The operating profit of the group was $6,605. 1 million during fiscal year 2005, an increase of 25. 4% over 2004. The net profit was $4,940. 8 million in fiscal year 2005, an increase of 35. 2% over 2004. Parle Agro Pvt Ltd: Parle Agro is an Indian company in the beverages industry and has brands like Frooti, consistent winner of India’s fruit beverage brand, Appy, Appy Fizz and packaged drinking water, Bailley. A pioneer in the Indian industry, Parle Agro is associated with many firsts.
They were the first to introduce fruit drinks in tetra packaging, first to introduce apple nectar and the first to introduce fruit drinks in PET bottles. In 2008, Parle Agro forayed into foods with the launch of two confectionery brands, Mintrox mints and Buttercup candies. This was soon followed by two more brands – Buttercup Softease and Softease Mithai. Recent beverage products from Parle Agro include Saint Juice, LMN and Grappo Fizz. In 2009, Parle Agro forayed into snacks with the launch of Hippo, in line with the company’s vision of becoming a major player in the foods and beverages industry.
SWOT ANLYSIS OF THE BEVERAGE INDUSTRY * STRENGTH * Renewal and investment * Innovation and Technological development * Experience in searching for new markets, niches and partners * Availability of key raw materials, cheaper labour costs and presence across the entire value chain gives India a competitive advantage. * WEAKNESS * Old technologies and poor work organization * Insufficient pace of creation and implementation of innovations * Insufficiently effective activities of small and medium-sized businesses * Change in household consumption patterns * OPPORTUNITIES Presence of a favorable market * Market globalization * Foreign direct investment promoting knowledge and developing export channels * Transfer of production to the countries with smaller labour costs * Well established distribution network * THREATS * Unfavorable market trends in energy resources * Increasing competition among exporters and decreasing dependency on one market * Intense competition between the organized and unorganized segments and low operational cost. * Water scarcity in India INTRODUCTION TO PEPSICO COMPANY Pepsi Co. : An Introduction
PepsiCo, Incorporated is a large conglomerate with interests in manufacturing, marketing and selling a wide variety of carbonated and non-carbonated beverages, as well as salty, sweet and grain-based snacks, and other foods. Company Profile Type : Public (NYSE: PEP) Founded : New York, (1965) Headquarters : Purchase, New York Area served : Worldwide Key people : Indra K. Nooyi (Chairwoman), (President) & (CEO) Industry : Food, Non-alcoholic beverage The PepsiCo challenge (to keep up with archrival The Coca-Cola Company) never ends for the world’s no. carbonated soft-drink maker. Its soft drinks include Pepsi, Mountain Dew, and Slice. Cola is not the company’s only beverage: Pepsi sells Tropicana orange juice brands, Slice mango drink, Gatorade sports drink, Nimbooz lime drink and Aquafina water. The company also owns Frito-Lay, the world’s no. 1 snack maker with offerings such as corn chips (Doritos, Fritos) and potato chips (Lay’s, Ruffles). Its Quaker Foods division offers breakfast cereals (Life), pasta (Pasta Roni), rice (Rice-A-Roni), and side dishes (Near East). A true global giant, Pepsi’s products are available in some 200 countries.
HISTORY Born in the Carolinas in 1898, Pepsi-Cola has a long and rich history. The drink is the invention of Caleb Bradham (left), a pharmacist and drugstore owner in New Bern, North Carolina. The information published here is provided by PepsiCo, Inc. and may be accessed at their site: www. pepsi. com. The story behind Pepsi co. goes as follows, in summer of 1898, as usual, was hot and humid in New Bern, North Carolina. So a young pharmacist named Caleb Bradham began experimenting with combinations of spices, juices, and syrups trying to create a refreshing new drink to serve his customers.
He succeeded beyond all expectations because he invented the beverage known around the world as Pepsi-Cola. Caleb Bradham had known that to keep people returning to his pharmacy, he would have to turn it into a gathering place. He did so by concocting his own special beverage, a soft drink. His creation, a unique mixture of kola nut extract, vanilla and rareoils, became so popular his customers named it “Brad’s Drink. ” Caleb decided to rename it “Pepsi-Cola,” and advertised his new soft drink. People responded, and sales of Pepsi-Cola started to grow, convincing him that he should form company to market the new beverage. In 1902, he launched the Pepsi-Cola Company in the back room of his pharmacy, and applied to the U. S. Patent Office for a trademark. At first, he mixed the syrup himself and sold it exclusively through soda fountains. But soon Caleb recognized that a greater opportunity existed to bottle Pepsi so that people could drink it anywhere. The business began to grow, and on June 16, 1903, “Pepsi-Cola” was officially registered with the U. S. Patent Office. That year, Caleb sold 7,968 gallons of syrup, using the theme line “Exhilarating, Invigorating, Aids Digestion. He also began awarding franchises to bottle Pepsi to independent investors, whose number grew from just two in 1905, in the cities of Charlotte and Durham, North Carolina, to 15 the following year, and 40 by 1907. By the end of 1910, there were Pepsi-Cola franchises in 24 states. Pepsi-Cola’s first bottling line resulted from some less-than-sophisticated engineering in the back room of Caleb’s pharmacy. Building a strong franchise system was one of Caleb’s greatest achievements. Local Pepsi-Cola bottlers, entrepreneurial in spirit and dedicated to the product’s success, provided a sturdy foundation.
They were the cornerstone of the Pepsi-Cola enterprise. By 1907, the new company was selling more than 100,000 gallons of syrup per year. Growth was phenomenal, and in 1909 Caleb erected a headquarters so spectacular that the town of New Bern pictured it on a postcard. Famous racing car driver Barney Oldfield endorsed Pepsi in newspaper ads as “A bully drink… refreshing, invigorating, a fine bracer before a race. ” The previous year, Pepsi had been one of the first companies in the United States to switch from horse-drawn transport to motor vehicles, and Caleb’s business expertise captured widespread attention.
He was even mentioned as a possible candidate for Governor. A 1913 editorial in the Greensboro Patriot praised him for his “keen and energetic business sense. ” Pepsi-Cola enjoyed 17 unbroken years of success. Caleb now promoted Pepsi sales with the slogan, “Drink Pepsi-Cola. It will satisfy you. ” Then came World War I, and the cost of doing business increased drastically. Sugar prices see sawed between record highs and disastrous lows, and so did the price of producing Pepsi-Cola. Caleb was forced into a series of business gambles just to survive, until finally, after three exhausting ears, his luck ran out and he was bankrupted. By 1921, only two plants remained open. It wasn’t until a successful candy manufacturer, Charles G. Guth, appeared on the scene that the future of Pepsi-Cola was assured. Guth was president of Loft Incorporated, a large chain of candy stores and soda fountains along the eastern seaboard. He saw Pepsi-Cola as an opportunity to discontinue an unsatisfactory business relationship with the Coca-Cola Company, and at the same time to add an attractive drawing card to Loft’s soda fountains. He was right.
After five owners and 15 unprofitable years, Pepsi-Cola was once again a thriving national brand. One oddity of the time, for a number of years, all of Pepsi-Cola’s sales were actually administered from a Baltimore building apparently owned by Coca-Cola, and named for its president. Within two years, Pepsi would earn $1 million for its new owner. With the resurgence came new confidence, a rarity in those days because the nation was in the early stages of a severe economic decline that came to be known as the Great Depression. TIMELINE – 1898 Caleb Bradham, a New Bern, North Carolina, pharmacist, renames “Brad’s Drink,” a carbonated soft drink he created to serve his drugstore’s fountain customers. The new name, Pepsi-Cola, is derived from two of the principal ingredients, pepsin and kola nuts. It is first used on August 28. * 1902 Bradham applies to the U. S. Patent Office for a trademark for the Pepsi-Cola name. * 1903 In keeping with its origin as a pharmacist’s concoction, Bradham’s advertising praises his drink as “Exhilarating, invigorating, aids digestion. * 1905 A new logo appears, the first change from the original created in 1898. * 1906 The logo is redesigned and a new slogan added: “The original pure food drink. ” The trademark is registered in Canada. * 1907 The Pepsi trademark is registered in Mexico. * 1909 Automobile racing pioneer Barney Oldfield becomes Pepsi’s first celebrity endorser when he appears in newspaper ads describing Pepsi-Cola as “A bully drink… refreshing, invigorating, a fine bracer before a race. ” The theme “Delicious and Healthful” appears, and will be used intermittently over the next two decades. 1920 Pepsi appeals to consumers with, “Drink Pepsi-Cola. It will satisfy you. ” * 1932 The trademark is registered in Argentina. * 1934 Pepsi begins selling a 12-ounce bottle for five cents, the same price charged by its competitors for six ounces. * 1938 The trademark is registered in the Soviet Union. * 1939 A newspaper cartoon strip, “Pepsi ; Pete,” introduces the theme “Twice as Much for a Nickel” to increase consumer awareness of Pepsi’s value advantage. 1940 Pepsi makes advertising history with the first advertising jingle ever broadcast nationwide. Nickel, Nickel” will eventually become a hit record and will be translated into 55 languages. A new, more modern logo is adopted. * 1941 In support of America’s war effort, Pepsi changes the color of its bottle crowns to red, white and blue. A Pepsi canteen in Times Square, New York, operates throughout the war, enabling more than a million families to record messages for armed services personnel overseas. * 1943 The “Twice as Much” advertising strategy expands to include the theme, “Bigger Drink, Better Taste. ” * 1949 “Why take less when Pepsi’s best? ” is added to “Twice as Much” advertising. 1950 “More Bounce to the Ounce” becomes Pepsi’s new theme as changing soft drink economics force Pepsi to raise prices to competitive levels. The logo is again updated. * 1953 Americans become more weight conscious, and a new strategy based on Pepsi’s lower caloric content is implemented with “The Light Refreshment” campaign. * 1954 “The Light Refreshment” evolves to incorporate “Refreshing Without Filling. “. * 1963 In one of the most significant demographic events in commercial history, the post-war baby boom emerges as a social and marketplace phenomenon.
Pepsi recognizes the change, and positions Pepsi as the brand belonging to the new generation-The Pepsi Generation. “Come alive! You’re in the Pepsi Generation” makes advertising history. It is the first time a product is identified, not so much by its attributes, as by its consumers’ lifestyles and attitudes. * 1964 A new product, Diet Pepsi, is introduced into Pepsi-Cola advertising. * 1966 Diet Pepsi’s first independent campaign, “Girlwatchers,” focuses on the cosmetic benefits of the low-calorie cola. The “Girlwatchers” musical theme becomes a Top 40 hit.
Advertising for another new product, Mountain Dew, a regional brand acquired in 1964, airs for the first time, built around the instantly recognizable tag line, “Ya-Hoo, Mountain Dew! ” * 1967 When research indicates that consumers place a premium on Pepsi’s superior taste when chilled, “Taste that beats the others cold. Pepsi pours it on” emphasizes Pepsi’s product superiority. The campaign, while product-oriented, adheres closely to the energetic, youthful, lifestyle imagery established in the initial Pepsi Generation campaign. 1969 “You’ve got a lot to live. Pepsi’s got a lot to give” marks a shift in Pepsi Generation advertising strategy. Youth and lifestyle are still the campaign’s driving forces, but with “Live/Give,” a new awareness and a reflection of contemporary events and mood become integral parts of the advertising’s texture. * 1973 Pepsi Generation advertising continues to evolve. “Join the Pepsi People, Feelin’ Free” captures the mood of a nation involved in massive social and political change. It pictures us the way we are-one people, but many personalities. 1975 The Pepsi Challenge, a landmark marketing strategy, convinces millions of consumers that Pepsi’s taste is superior. * 1992 Celebrities join consumers, declaring that they “Gotta Have It. ” The interim campaign supplants “Choice of a New Generation” as work proceeds on new Pepsi advertising for the ’90s. Mountain Dew growth continues, supported by the antics of an outrageous new Dew Crew whose claim to fame is that, except for the unique great taste of Dew, they’ve “Been there, Done that, Tried that. ” * 1993 “Be Young, Have fun, Drink Pepsi” advertising starring basketball superstar Shaquille O’Neal is rated as best in U.
S. * 1994 New advertising introducing Diet Pepsi’s freshness dating initiative features Pepsi CEO Craig Weatherup explaining the relationship between freshness and superior taste to consumers. * 1995 In a new campaign, the company declares “Nothing else is a Pepsi” and takes top honors in the year’s national advertising championship. * 1998 – Pepsi celebrates its 100th anniversary. PepsiCo. Chairman and CEO Roger A. Enrico donates his salary to provide scholarships for children of PepsiCo employees. Pepsi introduces PepsiOne – the first one calorie drink without that diet taste! STRENGTH & WEAKNESSES OF PEPSI CO.
Pepsi Cola throughout its 100 years of existence has developed much strength. One of the strengths that have developed Pepsi into such a large corporation is a strong franchise system. The strong franchise system was the backbone of success along with a great entrepreneur spirit. Pepsi’s franchise system and distributors is credited to bring Pepsi from a 7,968 gallons of soda sold in 1903 to nearly 5 billion gallons in the year of 1997. . Pepsi-Cola provides advertising, marketing, sales and promotional support to Pepsi-Cola bottlers and food service customers. This includes some of the world’s best-loved and most-recognized advertising.
New advertising and exciting promotions keep. Pepsi-Cola brands young. The company manufactures and sells soft drink concentrate to Pepsi-Cola bottlers. The company also provides fountain beverage products. Pepsi also has had the good fortune of making very wise investments. Some of the best investments have been in their acquiring several large fast food restaurants. They have also made wise investments in snack food companies like Frito Lay, which at present time is the largest snacks company in the world. Probably high on the list of strengths is Pepsi’s beverage line up.
Pepsi has four soft drinks in the top ten beverages in the world. These brands are Pepsi, Mountain Dew, Diet Pepsi, and Caffeine Free Diet Peps. Some other strong brands are All Sport, Slice, Tropicana, Nimbooz, Aquafina and a license agreement with Ocean Spray Juices. Pepsi Cola like any company has weaknesses. Ironically, the one strength that has been credited for most of its success in the past has now become a weakness for Pepsi. This former strength is the franchise system. The franchise system in Pepsi Corporate view has become a liability. Pepsi in today’s market must be able to act as one instead of several separate units. * The franchise system has become a hurdle to Pepsi because many of these franchises have become very strong and will not be dictated by PepsiCo on how to handle their operations. Some of these franchises are unwilling to support certain Pepsi products and at times produce their own private label products that are in direct competition with Pepsi products. * Secondly the franchisees are not willing to make capital expenditures to keep up with Coca-Cola who is a firm believer in reinvesting into their infrastructure (Coca Cola at present time does not operate a franchise bottling system). * Pepsi customers buy nearly five billion gallons of soft drinks per year. Pepsi customers buy their products because of taste, price, packaging and promotional factors and of a wide variety of brands. Pepsi customers also buy their products due to the high accessibility of Pepsi brands. * Pepsi products are distributed to many outlets. For example, supermarkets where Pepsi buys large shelf area and display areas so the customer can find them easier, viz, Convenience stores, Restaurants, Movie theaters and almost and other conceivable spots. * Another competitive advantage that Pepsi has is in their product Mountain Dew. Mountain Dew has grown a staggering 74. 1% over the last five years. Mountain Dew has a 6. 3% market share and has recently become the No. 4 soft drink in America. At this current pace Mountain Dew will become the first non-cola to reach the 1billion gallon mark in one year. * Pepsi also has an advantage as an innovator in their field. They are the first soft drink makers to introduce a new one-calorie soda called Pepsi-One with, just approved by the FDA, Ace-K. PEPSICO IN INDIA
PepsiCo entered India in 1989 and has grown to become one of the country’s 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 150,000 people including suppliers and distributors. 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 India’s 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 and Slice. PepsiCo’s 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 Lay’s Potato Chips, Cheetos extruded snacks, Uncle Chipps and traditional snacks under the Kurkure and Lehar brands.
The company’s high fibre breakfast cereal, Quaker Oats, and low fat and roasted snack options enhance the healthful choices available to consumers. Frito Lay’s core products, Lay’s, 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, snack food and exports business and to support the operations are the group’s 39 bottling plants in India, of which 17 are company owned and 22 are franchisee owned. PEPSICO VS COCACOLA IN INDIA
Both target all income segments of as their products are attractive and likeable. Both companies produce parallel products and services (Coca Cola Company, 2009). It is a known factor that when a company goes beyond the national boundaries, the distribution channel and production becomes main concern. When PepsiCo. launches new product and a new promotion strategy, Coca Cola, follows its fierce competitor, with its own version or vice-versa. Both companies are multinational and as they enter new market, they consider many issues such as legal risk, political risk, business risk etc. ecause of the fact that in past these companies had to leave the market due to above mentioned reasons. The companies are very conscious towards taste preferences of the targeted customers. Both companies work on ethics and moral values. They both have public relation department which serves as a chain between consumers and the company. The above graph shows the beverage ranking as at the beginning of 2011. Pepsi reverses a global trend in India, beating its main rival Coca-Cola in market share. In terms of Brand Trust too, Pepsi at rank 36 is at 160% higher than its closest cola competitor, Coca-Cola at 60th rank.
However the Coke camp has 5 brands among the top 300, as compared to the Pepsi-camp which is only represented by 3 brands among the 300 Most Trusted Brands of India. PEPSICO INDIA SWOT ANALYSIS: Strengths – (a) Pepsico is a well-known brand in FMCG sector. (b) Pepsico is offering many attractive sales promotion schemes. (c) Pepsico is having good market share. (d) Pepsico is offering many brands like 7up, Slice, Mirinda etc. (e) Pepsico is offering Varity of tastes to select. Weakness – (a)Lack of effective customer services. (b) Retailers are not getting proper schemes of Pepsi. c)Visis are out of order. In Jaipur town there is appropriate maintenance services available. (d) Retailers are complaining about cooling. Visis are not cooling well mainly 300 and 400 liters. Opportunities: – (a) Large beverage market. (b) Popular in youth as well as children. (c) New taste can be introduced like apple, even health drink also. (d) In India the major competitors of Pepsi are tea, coffee, lassi, inthis case Pepsi can come in 100 ml or even 50 ml at Rs. 3 or 4. Threats: – (a) Increasing competitors day by day. (b) Poor publicity by competitors. c) Numberless innovation’s area in beverage industry. PEPSICO INDIA PERFORMANCE Pepsi is one of the most well known brands in the world today available in over 160 countries. The company has an extremely positive outlook for India. Outside North America two of our largest and fastest growing businesses are in India and China, which include more than a third of the world’s population. (PepsiCo’s annual report, 1999) Faced with the existing policy framework at the time, the company entered the Indian market through a joint venture with Voltas and Punjab Agro Industries.
With the introduction of the liberalization policies since 1991, Pepsi took complete control of its operations. The government has approved more than US$ 400 million worth of investments of which over US$ 330 million have already flown in. One of PepsiCo’s key strategies was to develop a completely local management team. Pepsi has 19 company owned factories while their Indian bottling partners own 21. Since the entry of Pepsi-Cola to India in 1989, the soft drink industry has under gone a radical change. When Pepsi-Cola entered, Parle was the leader with the Thums-up being its flagship brand.
Other products offering by Parle included Limca & Goldspot, another upcoming player in the market was, the erstwhile bottler of Coca-Cola, “pure drinks”. Its offering includes Campa- Cola, Campa-Lemon & Campa-Orange The two advertisements tags: ‘yehi hai right choice baby’ and ‘nothing official about it’ immediately ring a bell- it’s got to be Pepsi. The advertisement tag ‘yehi hai right choice baby’ was the first ‘Hinglish’ slogan ever used in the in the Indian market. This slogan proved to be the best suited one for Pepsi and it was a mega hit and at that moment of time.
Pepsi in a short span of its operations in India has found a place in the hearts and minds of the Indian consumers. The success has primarily been due to the innovative and passionate Indian team, which has been built over the years. Pepsi is a trendsetter managed and run by Indians, where important decisions are taken locally. The RKJ group is India’s leading supplier of retailer brand Carbonated and Non-Carbonated soft drinks, with beverage manufacturing facilities in India and Nepal. It has the license to supply beverages in the territories of Western U. P. part of M. P. , half of Haryana, whole of Rajasthan, Goa, 3 districts of Maharashtra, 9 districts of Karnataka and whole of Nepal. The group has in total 18 bottling plants in India & Nepal and is responsible for producing and marketing 44% of Pepsi requirement in India. This group has brought name and fame to the Pepsi as in all this regions Pepsi is at the commanding position and in the mean this group has diversified itself into ice cream, suiting and shirtings, restaurants, beer plant in Mauritius & edible oil plant in Sri Lanka PESTICIDE CONTROVERSY 2003:
Although Pepsi’s sales were hurt post-cola contamination controversy, Pepsi spokesperson maintained that “it was difficult to assess whether the slump was due to the controversy or a lean monsoon. Weather has played a spoilt sport, too, and the season has been dull so they were cross fingered whether sales have been hit by the pesticides issue alone. ” PERFORMANCE IN 2010: PepsiCo reported that volume, revenue and profit growth for the fourth quarter and the full year of 2010 were driven by gains across its worldwide snacks and beverage businesses.
Beverage performance for the quarter was led by high double-digit growth in India, For the full year, beverage volume was led by double-digit growth in India and China. The net revenue grew by 34 per cent, net income rose by six per cent and core constant currency net income rose by 15 per cent. PepsiCo said, “Our snack and beverage volume gains for the quarter and full year were led by strong performance in key emerging markets. The Middle East, India and China, each reported snack volumes growing by strong double digits, and acquisitions contributed two points of snacks volume growth in the quarter and for the full year. . The company further strengthened its position in India through the formation of a joint venture with Tata Global Beverages to develop and market hydration beverages for the India market. The chronology PEPSICO. in India was: 1977: Parle launched Thums-up and pure drinks launched Coca-Cola. * 1998: In September, final approval for the Pepsi Foods Ltd. Project granted by the “Cabinet Committee” on economic affairs of the “Rajeev Gandhi Govt. ” * 1990: In March, “Pepsi-Cola and 7-up” launched markets in north India. 1990: In May, The government cleared the Pepsi-Cola project again but with a change in brand name to “Lehar Pepsi”, simultaneously it rejects the Coca-Cola application “Citra” from the Parle, stable hited the market. * 1991: Pepsi-Cola extended its soft drinks business and reached at national scale. Pepsi-Cola launched its product in Delhi and Bombay. * 1992: In January, Brito foods application is cleared by the FIPB. Pepsi-Cola and Parle start initial negotiation for a strategic alliance but took break off after a while. * 1993: Pepsi-Cola launched “Slice and Teem” captured about 25-30% of the soft drink market in about 2 years. 1994: Pepsi bought “Dukes & Sones”. * 1995: Pepsi-Cola lunched cans, having capacity of 330ml in various flavors. * 1996: Pepsi-Cola domestic and international operations combined into a Pepsi-Cola Company. International and domestic operations combined into one business unit called “Frito-lay Company”. * 1997: Pepsi-Cola brought “Mirinda Orange” opposite to “Fanta”. * 1998: Pepsi-Cola launched “Mirinda Lemon” opposite to “Limca”. * 1999: Pepsi-Cola launched “Diet Pepsi” in can and 1. 5 Lit. PET bottle for health conscious people. * 2001: Pepsi-Cola launched Slice in “Tetra” Pack. 2003: Pepsi-Cola launched “Pepsi Blue” to get the favour of world cup season. * 2005: Pepsi-Cola launched Mirinda in “Straw Berry” flavour to get the favour of movie Batman. * 2005: Pepsi-Cola launched 7-up as “7-up ice”. * 2009: Pepsi- Cola launches “Nimbooz”. NIMBOOZ: PEPSICO’S NEWEST OFFERING! INTRODUCTION Numbu Paani is a delicious thirst quencher made from freshly squeezed lemons, salt and sugar. It has a clean and refreshing flavour and is rich with vitamin C. Nimbu Paani, which is nothing but lemonade or lemon squash. It is commonly available in all the towns of India, particularly in the summer season.
It is very easy to prepare. Fresh lemon is squeezed in a glass and salt and sugar is added to it. Crushed ice may also be added. Nimbu Paani’ has always been the most commonly consumed cold beverage for Indians, especially during hot summers. Hence it made perfect business sense to launch a non-fizzy drink during summers as it scores above the colas in the health aspect (carbonated drinks actually soaks up the body’s moisture leaving the system more dry). With links to childhood obesity and tooth decay, soft drink sales were down for the first time in 20 years.
And sales of bottled water, juices and energy drinks are continuing to eat into the soda market. At such a time PepsiCo decided to launch “Nimbooz”. The added advantage of it being a very familiar natural refreshing drink which is now being offered in a hygienic and convenient way would make the mothers prefer it over the Colas. LAUNCH OF NIMBOOZ: The lime-lemon category is the fastest growing segment of the Rs 7,000-crore aerated soft drink market, with both competing brands Sprite from Coca-Cola and PepsiCo’s 7-Up registering healthy growth rates.
At the onset of the summer, PepsiCo India had launched packaged nimbu paani, Nimbooz by 7UP. The product has been created to suit Indian tastes. PepsiCo was delighted to introduce Nimbooz, a packaged nimbu paani offering specially developed to suit Indian tastes and preferences. Nimbu paani is a well loved Indian drink and Nimbooz brings consumers this well-loved taste backed by PepsiCo quality. PepsiCo claimed that Nimbooz contained no artificial flavours and contained real lemon juice. On 26 Feb 2009 PepsiCo India, the country’s leading food & beverage company, launched its packaged nimbu paani, Nimbooz by 7Up.
Inspired by fresh, home-made nimbu paani, India’s favourite beverage, Nimbooz by 7Up has been specially created to suit Indian tastes. Nimbooz is a delicious nimbu paani, with real lemon juice, no fizz, and no artificial flavours. Available in trendy, convenient packs, Nimbooz is a great way to enjoy nimbu paani ina hygienic format. PepsiCo has drawn up an intensive consumer activation campaign to market Nimbooz. The 360 degree marketing communication plan will build awareness through multi-city launches and road shows, 3D activation, leveraging Out-of-Home (OOH) media, radio, press and outdoors.
Aggressive trial generation & sampling initiatives were also be taken forward across major cities of the country. A special ‘Nimbooz Highway Gadi’ had been created that would visit the four major highways connecting Delhi to Jaipur, Dehradun, Agra to drive trails and consumer education To introduce the beverage, as part of the teaser campaign which kicked off on March 15, an 18-foot tall wooden lemon squeezer with a four-foot lemon replica in it was placed outside various malls and junctions. The message on it read, “Asli Refresher Coming Soon”.
This innovation was executed at Ambi Mall, Gurgaon; Great India Place, NOIDA; Court Chowk, Amritsar; and Fun Republic Mall, Chandigarh. For the revealer, the lemon was replaced with a 20-foot high Nimbooz bottle on March 18. The teaser in Mumbai was spread across five days. For this, a knotted gunny bag stuffed with lemons was mounted on a canter at Mahim Causeway. The message on the sack read, “4 Din Mein Asli”. Day 2 saw an untied sack with lemons scattered around it and a similar message, with the number of the day changed.
The sack got shorter for the next two days and on the fifth day, a returnable glass bottle (RGB) of Nimbooz appeared on the canter. The on-ground initiative was supported by a TV commercial that reflects Nimbooz ‘Ekdum Asli Indian’ proposition. The film had been created by BBDO India. In times of tough competition, branding needs to stand out and this is where outdoor media helps, by making the communication as big as possible. Lemon is central to the idea of Indian refreshment and the same thought went in the making of Nimbooz.
They decided to keep the brand proposition simple, yet appealing, by dwelling on the authenticity of Ekdum Asli Indian Nimbu-Paani. “Its like rebirth of nimboo pani with a new refreshing and energetic taste. Definitely this product has given great and tough competition to the other drinks of its segment. People really love its taste and want to purchase Nimbooz. also pushing friends and family member to try it as they believe once they will try then rest Nimbooz will handle in short YEHI HAI RIGHT CHOICE” WHAT IS A MARKETING MIX? The term “marketing mix” was coined in 1953 by Neil Borden in his
American Marketing Association presidential address. However, this was actually a reformulation of an earlier idea by his associate, James Culliton, who in 1948 described the role of the marketing manager as a “mixer of ingredients”, who sometimes follows recipes prepared by others, sometimes prepares his own recipe as he goes along, sometimes adapts a recipe from immediately available ingredients, and at other times invents new ingredients no one else has tried. The marketing mix is probably the most famous marketing term. Its elements are the basic, tactical components of a marketing plan.
Also known as the Four P’s, the marketing mix elements are price, place, product, and promotion. Elements of the marketing mix are often referred to as the “Four P’s”: * Product – It is a tangible object or an intangible service that is mass produced or manufactured on a large scale with a specific volume of units. Intangible products are service based like the tourism industry & the hotel industry or codes-based products like cellphone load and credits. To retain its competitiveness in the market, product differentiation is required and is one of the strategies to differentiate a product from its competitors. Price – The price is the amount a customer pays for the product. The business may increase or decrease the price of product if other stores have the same product. * Place – Place represents the location where a product can be purchased. It is often referred to as the distribution channel. It can include any physical store as well as virtual stores on the Internet. * Promotion represents all of the communications that a marketer may use in the marketplace. Promotion has four distinct elements: advertising, public relations, personal selling and sales promotion. MARKETING MIX OF NIMBOOZ
PRODUCT: PepsiCo India launched a packaged nimbu paani offering – Nimbooz – under its 7Up brand to expand its non-carbonated drinks portfolio. Nimbooz is a non-carbonated lemon drink which contains no artificial flavors and contains real lemon juice. INGREDIENTS: * Water * Sugar * Concentrated Lemon Juice (0. 8%) * Acidity regulators (296,330) * Salt * Preservatives (202) *contains added flavor (natural and nature identical flavouring substances) NUTRIONAL FACTS| ENERGY (kcal)| 43|
CARBOHYDRATES (g)| 10. 8| SUGARS (g)| 10. 5| PROTEIN (g)| 0| FAT (g)| 0| PACKAGING: Nimbooz offers great value to consumers in three packaging formats of: * 200ml returnable glass bottles * 350ml pet bottles * 200 ml tetra .PRICE: Nimbooz is relevant and affordable offering for consumers on the go because of its ready-to-drink format that is both convenient and hygienic. The proposition of the Indian refresher perfectly captures the mass appeal of this product and will certainly drive consumer connect.
The pricing strategy adopted is of course that of PENETRATION PRICING as followed by all PepsiCo products. PLACE: PepsiCo already has well established distribution network for its other brands so it becomes easier for them to cover the entire Indian market and place Nimbooz in retail outlets and restaurants. Traditional Trade :At Kirana stores in the above mentioned packages. Modern trade:Distribution through sports clubs, gymnasiums, tie ups with sports institutes etc. Wheel and Spokes model: In rural areas, where one dealer serves many villages.
After the launch a newspaper article cited the following: | | | PROMOTION PepsiCo has drawn up an intensive consumer activation campaign to market Nimbooz. The 360 degree marketing communication plan has build awareness through multi-city launches and road shows, 3D activation, leveraging Out-of-Home (OOH) media