Pepsi Case Study

Over the years, Pepsi failed to meet the majority of the promises, the national government faced a financial crisis being unable to fund itself, India’s northern territories were at war with militant uprisings, and India’s ever-expanding population is wavering on the fence of public opinion of both Pepsi’s place in India and the confidence of the new political party of Janata Dal.

Pepsi needs to globalize because its home market is not only saturated but because of health consciousness is shrinking. On the other hand, it want to enter markets abroad where there are less educated people who can be persuade to drink Pepsi. It is this search for markets that has driven Pepsi to markets like India.

This is a detailed and comprehensive case describing the market entry of two global consumer product companies, PepsiCo and Coca-Cola Corporation into a Big Emerging Market (BEM), India. It traces the history of the challenges encountered by these two companies in the developing country environment of India from the late 1980s to the present time. Emphasis is placed on lessons learned by the two companies as they adjust to competing in an unfamiliar and rapidly-changing environment.

The Coca-a-Cola company is huge and is involved in many different environmentally friendly programs. One of which is how they are giving back locally by providing clean water to less fortunate areas.

The unbalanced political situations in India, their tendency to avoid foreign products, fluctuations in prices, cultural activities, health concerns, and threats of substitutes resulted in causing a reported loss of Rs.538 millions in the financial year 2015-16. Two south Indian states had banned the production and distribution of PepsiCo products. Some of the reasons for this catastrophic action were environmental and health issues. Pepsi.co products had

According to my research PepsiCo brand wstone product the Pepsi Cola line, but the continuing decline in customer demand for carbonated beverages could be an ultimate threat for the company. I feel this way because with less demand for their flag ship product PepsiCo could lose some of its competitive edge over rivals.

focused not only to purchase but to consume the product. Marketing in the 1980’s for PepsiCo

The beverages segment primarily produces its soft drinks such as Pepsi, Mountain Dew, Tropicana, Lipton tea and other brands worldwide and 7-UP outside the U.S. markets. These are positioned in close competition with Coca-Cola Inc. of USA. Coca-Cola gets most of their profits of around 80 percent for International operations while PepsiCo gets 6 percent profits. In a joint venture with spray juice products PepsiCo also manufactures and distributes fruit juices.

If Pepsi can gain competitive advantage in Pakistan, then why not in the world? Presentation and History:

PepsiCo is sold in more than 200 countries, where in some of those countries Pepsi is the number one food and beverage company, such as the United States, Canada, and Saudi Arabia. The growing middle class people globally makes the demand of high quality products such as PepsiCo increases. The American food and beverage company has been established in China for more than thirty years and the products are even one of the most popular product of its kind, such as Lay’s (Nooyi, 2012). In addition, PepsiCo’s market share in the US outweighs the competitors as shown on Figure 1 below. This proves that PepsiCo’s presence globally is really strong.

In 1991 the administration of India permitted outside makes to enter in the India soft drink industry. Therefore Pepsi went into the business in 1992. After a long stretch coke re-entered the India market on 22nd July 1998. Its achieve presentation was quest for planned accomplice to build up a joint endeavor in India. The point of interest Pepsi having over its archival

Unilever did neuroscientific testing with Neuro-consult to compare the pleasure levels of consumers of Ice cream, chocolates and yogurt and found that Ice-cream had the highest score and provides the most visceral pleasure.

Huge firms or organizations say that everybody is their purchaser whether they have a place with rustic or urban zone, enormous or little nation, rich or poor, grown-ups and little youngsters and so forth. Pepsi is basically utilized by the youthful era yet it asserts that it is moving towards mass

prevailed for over one hundred and nineteen years. PepsiCo has provided a variety of products to

Depending on the strategy that a company follows, there are three primary reasons a company like Pepsi engages in international business: