For Office Use

Grade:

INSTITUTE OF MANAGEMENT, NIRMA UNIVERSITY

SUMMER INTERNSHIP REPORT 2019

Development of Gatorade awareness campaign and

launch of Pepsi black

Submitted to: Submitted by:

Prof. Shreshtha Dabral Vedika Nigania
(181462)

Internship Organization:

Date of Submission: 1st July, 2019

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 SUMMER PROJECT REPORT 2019

AUTHOR OF THE REPORT: Vedika Nigania (181462)

Institute of Management, Nirma

SUBMITTED TO:
University, Ahmadabad

COMPANY NAME PEPSICO

& CRPF Road, Sector
ADDRESS: 62,Gurgaon,Haryana- 122102

DATE OF REPORT: 1st July,2019

SUBMITTED TO: Prof. Shreshtha Dabral

PROJECT DURATION: April 15, 2019 - June 13, 2019

Mrs. Divya Gonnabathula

CORPORATE MENTOR: Senior brand Manager,
Pepsi,Gatorade,Aquafina.

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 DECLARATION CERTIFICATE
I, Vedika Nigania, hereby declare that this project with special reference to PepsiCo, Gurgaon.
It is based on original project study conducted by me under the guidance of Senior brand
manager, Mrs. Divya Gonnabathula. I would also like to thank the Gurgaon team of PepsiCo
for their constant support and guidance. I further declare that this project has not previously
formed the basis of the award of any degree or Diploma or similar title of recognition.

Place: Gurgaon

Date:

Sign: _____________ (Vedika Nigania)

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 ACKNOWLEDGEMENTS

I take this opportunity to thank Institute of Management, Nirma University, who has kept this
very much necessary summer internship training program for the benefits of the students.

Secondly, I would like to thank Divya Gonnabathula (Senior brand manager) for giving an
opportunity to pursue my summer internship in this organization. I would also like to thank her
who at each moment has given me valuable guidelines and without her constant support, this
training program would not have been as rich a learning experience as it is now.

I would also like to thank Prof. Shreshtha Dabral for constantly supporting me and providing
valuable guidelines through the journey of my summer internship program.

Last but not the least; I would like to thank all my colleagues at PepsiCo, who had given
motivation and right direction throughout my internship program.

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 EXECUTIVE SUMMARY

PepsiCo is one of the biggest FMCG company. PepsiCo has 6 brands of snacks and 9 brands
of beverages. It has been diversifying its product categories from just beverages to snacks as
well. PepsiCo does great marketing of its products through its brand ambassador and TVC. It
has association with some of the top agencies for creating advertisements and creative such as
HHG and JWT. Having worked with two brands –Pepsi and Gatorade.
Pepsi
Facilitating the launch of a new product gave me a broad idea about how a product is launched
in the market. Through this project I was able to understand the labelling as well as marketing
plans of a brand before its launch. It also helped me give an overview of the work of other
departments involved in launching of a product. E-commerce listing of Pepsi SKUs was a
great learning about the FMCG e-commerce. The different ways in which a brand can advertise
and make the product enter the customers cart in the least number of steps gave me a wide
exposure to the e-commerce listing. Having interacted with various consumers each of different
brand preference helped me understand the consumers need and how a consumer perceives a
product. It gave me a holistic idea of consumer preferences and what kind of product a
consumer would like to consume.
Gatorade
Gatorade below the line activity through marathon activation has taught me how to create
awareness about the brand and educate the consumers about the product they are consuming as
well as the need of the product. Using different marketing materials at a low cost was a great
learning. The report analysis gave me some view as to how a brand decides as to increase its
sale from understanding the sales of different packs in different states. These projects have
given me an overview of the major tasks involved for the marketing of brands as well as the
interactions with agencies.

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Table of Contents
PART A- PROFILE OF THE ORGANIZATION............................................................. 7
Industry overview- FMCG ................................................................................................. 7
Types of Fast-Moving Consumer Goods ..................................................................................... 7
Challenges .................................................................................................................................... 8
Future Prospects .......................................................................................................................... 8
Emerging Consumer Demand in India ....................................................................................... 9
Timeline of the company ................................................................................................... 10
Company Overview ........................................................................................................... 11
PepsiCo ...................................................................................................................................... 12
Mission ....................................................................................................................................... 14
Vision ......................................................................................................................................... 15
Financials of the Company ........................................................................................................ 15
Competitors of PepsiCo ............................................................................................................. 17
PepsiCo- Beverages.................................................................................................................... 18
Analysis.............................................................................................................................. 20
Porter’s Five Force Model ........................................................................................................... 20
PEST Analysis ........................................................................................................................... 23
SWOT Analysis ......................................................................................................................... 25
McKinsey 7S model ................................................................................................................... 27
BCG Matrix ............................................................................................................................... 29
Future of the company ...................................................................................................... 32
PART B-THE PROJECT WORK.................................................................................... 32
PEPSI................................................................................................................................... 33
Gatorade ............................................................................................................................ 42
PART C- LEARNING.............................................................................................................. 50
References .......................................................................................................................... 53
Appendix: Internship Certificate ........................................................................................ 55

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PART A- PROFILE OF THE ORGANIZATION

Industry overview- FMCG

“Fast moving consumer goods are products that are quickly sold at lower cost. These goods
are also known as consumer goods.
Consumer products have a short life span due to high consumer demand (such as soft drinks
and sweets) or perishables (meat, dairy and baked goods).” These items are often purchased,
consumed quickly, at affordable prices, and sold in large quantities. “When they are sold in
stores, their turnover rate is also high.”
Consumer goods are products. purchased by ordinary consumers. “They fall into three
categories: durable goods, non-durable goods and services. Durable goods have a life of three
years or more, while non-durable. goods have a life of less than one year. Fast consumer
goods are the largest segment of consumer goods. They are classified as non-durable because
they are consumed immediately and have a short shelf life.”

Types of Fast-Moving Consumer Goods

Processed Prepared
Beverages
Foods Meals

Fresh,frozen
Baked Goods
and dry goods

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 Cleaning Cosmetics
Medicines
Products and toiletries

Office
Supplies

Challenges

“The main threats to the FMCG sector is Less innovative abilities and systems. Indian FMCG
sector, especially small players are .lagging behind in adopting innovative approaches for
fulfilling needs of the consumers. Secondly, New packaging norms made .mandatory for all
companies to sell .products in standard size packs. Also, Not only is internet penetration still
increasing, there is an increasing willingness and comfortableness to. purchase goods online
for home delivery. A survey for The Grocer in the UK by Harris Interactive suggested that
about 35% of UK. consumers were willing to purchase food, drink and household items
direct from the manufacturer.”

Future Prospects

“Overall, the future of the industry remains strong and interested candidates .will benefit
from a holistic learning experience. Rising income levels, i.e. increase in purchasing power of
consumers: According Mckinesy Global. Institute report, in next two decades income level of
Indian consumer will almost triple and India will become world’s fifth – largest consumer
market by 2025.India’s middle .class size will increase to 583 million , or 41% of the
population. Extreme rural poverty has declined .from 94% in 1985 to 61% in 2005 and is
projected to drop to 26% by 2025. This will result into increased. purchasing power of Indian
consumer. Untapped rural market, changing life style: An untapped, huge and fragmented
rural market is an .opportunity for FMCG players. The Penetration level for many FMCG
product categories is very low especially in rural area.”

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Emerging Consumer Demand in India

“The company estimates that 2019 will be a better year and. a fair comparison to see if
demand growth is driven by strong. consumer demand, which is a reliable indicator of
economic growth.”

“Fast moving consumer goods companies and experts believe that short-term demand growth
prospects are healthy and. consumer demand will be broad, meaning that demand will come
from all categories and markets. In addition, as a result of increased exposure to global
lifestyle and newer technologies, consumer .perception in India has been shifting in favour of
premium consumer durables thus leading to premiumisation of certain product categories.
Initiatives such as “Make in India”, many manufactures. are setting up their manufacturing
plants which would produce. more affordable products in the near future. Fast moving
consumer goods will become a Rs 400,000-crore industry by 2020.”

Expected growth in FMCG sector by 2020

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Timeline of the company

“PepsiCo, Inc. was established through the merger of Pepsi-Cola .and Frito-Lay. Pepsi-Cola
was created in the late 1890s by Caleb Bradham, a New Bern, N.C. pharmacist. Frito-Lay,
Inc. was formed by the 1961 merger .of the Frito Company, founded by Elmer Doolin in
1932, and the H. W. Lay Company, founded by Herman W. Lay, also in 1932.”

Pepsi-Cola Company: Pepsi-Cola (formulated in 1898), Diet Pepsi (1964) and Mountain Dew
(introduced by Tip Corporation in 1948).

“Frito-Lay, Inc.: Fritos brand corn chips (created by Elmer Doolin in 1932), Lay's brand
potato chips (created by Herman W. Lay in 1938), Cheetos brand cheese flavored snacks
(1948), Ruffles brand potato chips (1958) and Rold Gold brand pretzels (acquired 1961).”

1966- “Doritos brand tortilla chips are introduced. They are destined to become the most
popular .snack chip in the United States. Pepsi enters Japan and Eastern Europe”

1970- “PepsiCo moves from New York City to its new world headquarters in Purchase, N.Y.
The new corporate headquarters. features a .building by one of America's foremost architects,
Edward Durrell Stone (1902-1978), set on a .144-acre campus. amid an outdoor sculpture
garden. “
“Pepsi is the first company to respond to consumer preference with lightweight, recyclable,
plastic bottles, and introduces the industry's first two-liter bottle.”
1977- PepsiCo acquires Pizza Hut.

1982- “Pepsi Free and Diet Pepsi Free, the first major brand .caffeine-free colas, are
introduced.”

1985- “PepsiCo is now the largest company in the beverage industry and its products are
available in nearly 150 countries and territories.”

1989- “PepsiCo acquired Walkers Crisps and Smith Crisps, two of the United Kingdom's
leading snack food companies.”

1994 -“ PepsiCo and Starbucks form the North American Coffee Partnership to jointly
develop ready-to-drink coffee beverages.”
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1999- Tropicana juices enter the Indian market

2001- PepsiCo merged with Quaker oats.

2006- CEO of PepsiCo- Indra Nooyi

2010-“ PepsiCo completed the acquisition of The Pepsi Bottling Group, Inc. and
PepsiAmericas, Inc., its two largest anchor bottlers.”

2012- “Diet Mountain Dew, Brisk and Starbucks ready-to-drink beverages join PepsiCo's
portfolio of billion-dollar brands, bringing the total to 22.”

2014- “Pepsi introduces Pepsi Spire, a portfolio of innovative fountain beverage dispensers.
Consumers can create .more than 1,000 customized beverages with the touch of a button.

Company Overview

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PepsiCo

“PepsiCo entered India in 1989 and in a short period, has grown into one of the largest MNC
food and beverage businesses in the country. PepsiCo’s growth in .India has been guided by
“Performance with Purpose”, its fundamental belief that the success of the company is
inextricably linked to. the sustainability of the world around. The Company believes that
continuously improving the products it sells, operating responsibly .to protect the planet and
empowering people around. the world is what enables PepsiCo to run a successful global
company that creates long-term value for society and our shareholders.”

“The company has built an expansive beverage and snack food business supported by 62
plants across the country. In two decades, the company has been .able to organically grow
eight brands, each of which. generate Rs.1000 crores or more in estimated annual retail sales
and are household names, trusted across the country.”

PepsiCo major cities are:

 Chennai
 Bengaluru
 Hyderabad
 Mumbai
 Kolkata
 Ahmedabad
 New Delhi

“PepsiCo India has pioneered and established a model of partnership with farmers and now
works with over 24,000 happy farmers across nine states. More than 45 percent. of these are
small and marginal .farmers with a land holding of one acre or less. PepsiCo provides 360-
degree support to the farmer through assured buy back.of their produce at pre-agreed prices,
quality seeds, extension services, disease control packages, bank loans, weather insurance,
and the latest technological practices.”
“In 2009, PepsiCo India achieved a significant milestone, by becoming the first business to
achieve ‘Positive Water Balance’ in the beverage world, and has been Water Positive since
then. In 2015, PepsiCo India saved 12.75 billion litres .more that it consumed in its
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manufacturing operations. The company made this possible through innovative irrigation
practices like direct seeding, community water recharging initiatives, and by reducing the
consumption of water in its manufacturing facilities.”

“PepsiCo India is focused on reducing its carbon footprint. In 2015, PepsiCo’s India’s Food
and Beverage manufacturing operations’ .dependence on non-renewable energy. has reduced
by 74% and 62% respectively from a baseline of 2006.”

“Initiatives such as reduction in use of chemicals, eco-friendly packaging initiatives and

efficient waste management help. reduce load on the environment. PepsiCo in partnership
with the NGO. Exnora and local municipalities has also .been working on a unique waste
collection and treatment model programme called ‘Waste-to-Wealth’.”

PepsiCo Brands

Food
 Lay’s
 Doritos
 Cheetos
 Kurkure
 Quaker
 Uncle chips

Beverages
 Tropicana
 7up
 Pepsi
 Gatorade
 Sting
 Mirinda
 Lipton
 Mountain dew

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  Aquafina

Snacks – “PepsiCo has made significant progress by reducing .5% to 25% sodium across
popular variants of our snacks master brands. including Lay’s and Kurkure. And reduced
15% Saturated fat in the entire Lay’s potato chips range.”

Beverages –“ PepsiCo has been offering consumers a wide range of beverages including
‘No-Sugar’ variants such as Diet Pepsi, Pepsi Black, and reduced sugar. variants such as 7UP
with 30% reduced sugar. We have also .expanded alternative beverages and hydration
choices for consumers including Aquafina, Gatorade, a sports nutrition drink.”

Source- http://www.in-beverage.org/pepsico.htm

Mission

“As one of the largest food and beverage companies in the world, our mission is to provide
consumers around the world with delicious, affordable, convenient and complementary foods
and beverages from wholesome breakfasts to healthy and fun daytime snacks and beverages to
evening treats. We are committed to investing in our people, our company and the communities
where we operate to help position the company for long-term, sustainable growth.

We are committed to conserving precious natural resources and fostering environmental

responsibility, in and beyond our operations; considering those who make them— striving to
support communities where we work and the careers of generations of talented PepsiCo
employees.”

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Vision

“At PepsiCo, we're committed to achieving business and financial success while leaving a
positive imprint on society – delivering what we call Performance with Purpose.

In practice, Performance with Purpose means providing a wide range of foods and beverages
from treats to healthy eats; finding innovative ways to minimize our impact on the
environment and reduce our operating costs; providing a safe and inclusive workplace for our
employees globally; and respecting, supporting and investing in the local communities where
we operate.

Wherever we do business, Performance with Purpose is our guide. We believe that delivering
for our consumers and customers, protecting the environment, sourcing with integrity and
investing in our employees are not simply good things to do, but that these actions fuel our
returns and position PepsiCo for long-term, sustainable growth.”

Financials of the Company

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 Source-https://www.pepsico.com/docs/album/annual-reports/2018-annual-
report.pdf?sfvrsn=35d1d2bc_2

Consolidated Balance sheet

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 Source- https://www.pepsico.com/docs/album/annual-reports/2018-annual-
report.pdf?sfvrsn=35d1d2bc_2

Competitors of PepsiCo

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PepsiCo’s competitors in beverages are:

 Coca-Cola
 Dabur Real Juice
 Dr. Pepper Snapple
 Red Bull

PepsiCo’s competitors in snacks are:

 Mondelez
 General mills
 Kellogg’s
 P and G
 HUL
 Conagra

“The Coca-Cola company has historically been considered PepsiCo's primary competitor in
the beverage market, and in December 2005, PepsiCo .surpassed The Coca-Cola Company in
market. value for the first time in 112 years. since both companies began to compete. As a
result of mergers, acquisitions, and partnerships pursued. by PepsiCo in the 1990s and 2000s,
its business has shifted .to include a broader product base, including foods, snacks, and
beverages. The majority of PepsiCo's revenues no longer come from the production and sale
of carbonated soft drinks. Beverages accounted for less .than 50 percent of its total revenue in
2009. In the same year, slightly more than. 60 percent of PepsiCo's beverage sales came from
its primary non-carbonated brands, namely Gatorade and Tropicana.”

“PepsiCo's Frito-Lay and Quaker Oats brands hold a significant share of the U.S. snack food
market, accounting for .approximately 39 percent of U.S. snack food .sales in 2009.One of
PepsiCo's primary. competitors in the snack food market overall. is Kraft Foods, which in
the same year held 11 percent of the U.S. snack market share.”

PepsiCo- Beverages

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PepsiCo has the following divisions in its beverages category:

Carbonated Soft drink

Mango based drink

Juice based drink

Water

The combination of all the four types of drinks in known as Liquid Refreshment beverages. The
carbonated soft drink also known as CSD has been further sub-divided into:

 Cola
 Orange
 Clear
 Neon
 Cloudy

Cola CSD comprises of Pepsi and its competitor being Thumps up and Coca-Cola. Orange CSD
has Mirinda and the competitors product is Fanta. Clear CSD has 7UP and the competitor is
sprite. Neon has mountain dew and currently has no major competitor in the market. Cloudy has
7UP nimbooz whose main competitor is Limca.

Further discussing the Mango based drink which is known as MBD. The product is slice and its
competitor is Mazza and Frooti.

Juice based drink is also known as JBD. PepsiCo’s brand for such drinks is Tropicana and its
main competitor is Real, Be Natural and Paper boat.

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Water category has Aquafina as its brand of PepsiCo. And its main competitors are Bisleri and
Kinley.

Bottling of PepsiCo is done in two ways:

 Franchise owned bottling operations

 Company owned bottling operations

Analysis

Porter’s Five Force Model

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 Threat of
New Entrants
(Moderate)

Power of
Competitive
Suppliers
Rivalry (High)
(Low)

Availability of
Power of
Substitutes
Buyers (High)
(High)

Threat of new entrants (moderate)

 Low switching costs

 Moderate customer loyalty
 High cost of brand development

“New firms threaten PepsiCo because consumers can easily .shift from one company to
another (low switching costs). However, through moderate customer loyalty, PepsiCo has a
corresponding level of .protection from new entrants. Also, the high cost of brand
development makes it .difficult for new entrants to directly compete against PepsiCo, which
has one of the strongest brands in the industry.”

Power of suppliers (low)

 High overall supply

 Low forward integration of suppliers
 Moderate size of individual suppliers

“The high overall supply increases PepsiCo’s options in .acquiring raw materials, thereby
reducing the bargaining power of suppliers. This power is also weakened because of the low

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forward integration, which limits suppliers’ .control of PepsiCo’s supply chain. These
external factors weaken suppliers’ influence .on the company even though some of them are
moderately sized or large firms.”
Power of buyers (high)

 Low switching costs

 High access to product information
 High availability of substitutes

“Consumers can easily shift from one firm to another. This condition strengthens customers’
ability to influence PepsiCo. In addition, consumers .have extensive information for them to
easily make choices between PepsiCo. products and competing products. Also, substitutes
give buyers even more reasons to stay away from PepsiCo products.”

Availability of substitutes (high)

 High performance of substitutes

 Low switching costs
 High availability of substitutes

“Most substitutes to PepsiCo’s products are satisfactory. For example, consumers easily
enjoy real fruit juices and brewed coffee. products instead of drinking Pepsi or Tropicana
products. In addition, PepsiCo consumers .can easily shift to these substitutes, which are
generally affordable. Also, most of these .substitutes are widely available in grocery stores
and other providers.”

Competitive rivalry (high)

The following points show that PepsiCo faces strong competitive rivalry and these are the
most notable external factors that causes strong force of competition

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  High aggressiveness of firms
 Low switching costs
 High number of firms

“Most firms in the food and beverage industry are aggressive, such as in product innovation
and marketing, thereby exerting a. strong force on PepsiCo. Competitive rivalry is also
strengthened because consumers can easily .shift from one provider to another (low switching
costs). In addition, PepsiCo competes with many other firms, including. big ones like the
Coca-Cola Company and a .multitude of small and medium ones.”

PEST Analysis

Political factor

 Political stability in major economies (opportunity)

 Improved intergovernmental cooperation (opportunity)
 Government initiatives against carbonated drinks (threat)
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Economic factor

 Economic stability of most major markets (opportunity)

 Rapid growth of developing economies (opportunity)
 Slowdown of the Chinese economy (threat)

“PepsiCo has opportunities for growth and expansion based on .the economic stability of
developed countries like the United States, as well as the high growth rates of developing
economies, such as those in Asia. However, the current slowdown .of the Chinese economy
threatens PepsiCo’s potential international growth, considering that China is among the
biggest economies in the world.”

Socio-cultural factor

 Higher health consciousness (threat & opportunity)

 Increasing busy lifestyles (opportunity)
 More discriminating attitudes about product quality (opportunity)

“This external factor also presents the opportunity for the company to improve its products to
address such concerns. PepsiCo can also take advantage of the busy lifestyles of consumers,
especially in urbanized and .industrializing markets around the world. People with these
lifestyles are more likely to purchase ready-to-eat food products .like those of PepsiCo. The
company has the opportunity .to continue enhancing product quality to maximize revenues,
with regard to consumers’ increasingly discriminating attitudes about product quality.”

Technological factor

 Moderate R&D investments in the food and beverage industry (opportunity)

 Improving knowledge management systems (opportunity)
 Increasing automation in business (opportunity)

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“PepsiCo can boost its own R&D investments to improve its competency in this business
aspect. Also, PepsiCo can exploit .the benefits of knowledge management systems to support
its various business processes, such as product innovation. and strategic decision-making. In
addition, an increase in the number of automated. processes in the company can enhance
business performance.”

SWOT Analysis

Strengths Weakness

•Brand Recognition •Competition

•Strong Leadership •Failed product
•Strong distribution •Product dependence
•Clear target
audience

Opportunities Threats

•CSR •Competitiors
•Healthy options •Health factor
•Economic slowdown

Strengths of the company

“PepsiCo has a steady portfolio of more than 100 different brands. The company dominates the
snack, food, and beverage industries. In terms of earning, PepsiCo is only .second to Nestle. It’s
achieved this level of growth because of the many brands under their belt.

 Brand recognition

Since PepsiCo owns some of the most popular food, beverage, and snack brands, it’s
transformed into a globally. recognizable brand. Each brand is worth millions to billions of
dollars. And they fall under PepsiCo, pushing the company’s net worth into the billions.”

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  Strong Leadership

“Under the leadership of Indra Nooyi PepsiCo has been doing really well. It has managed to
stay at number two position .in the complete food and beverage sector only behind Nestle in
that field.

 Strong distribution

Pepsi has a global presence in more than 200. countries providing them with a very good
distribution network.”

 Clear target audience

“Pepsi, unline Coca Cola has always had a clear target audience – the young crowd. It always
targets youngsters through its ads. and generally the youngsters are shown to be smarter then
the old ones. The message is clear – Pepsi is the in thing.”

Weaknesses of the company

 Competition

“It has heavy competition from Coca-Cola in their soft drinks category. They are always neck
to neck with each other. This competition thereby. provides a room for not so loyal customer
base to switch brands quickly.

 Failed products
Many failed products such as ‘Crystal Pepsi’ which hurts the brand image of the PepsiCo and thereby
giving room to the competitors to grow.

 Product dependence
They are only present in the food and beverage .industry which may be harmful in the longer
run. They need to diversify their business to other product segments to become a global
leader.”

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Opportunities for the company

 Healthy Options

“It should work more on improving the health implications of their products and make the
customer aware of the same. Diet Pepsi is a positive move towards that direction.”

 CSR
“They can do more CSR activities to tackle the negative remarks that hurt the brand image of
the organisation and benefit the local people.”

Threats for the company

 Competitors

“PepsiCo’s main competitors are Coca-Cola, Kraft foods, Nestle, Dr Peppers Snapple Group
and Mondelez.”

 Health factor
“The unhealthy factor associated with its products can take a toll on the health conscious
customers and might lose them. This can be clearly seen by the fall of soft drinks sale.”
 Economic slowdown
“With the recent reforms in the country PepsiCo might see a drop in its sales due to a cash
crunch in the economy. Other factors such as recession and inflation may also impact sales of
the company.”

McKinsey 7S model

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Strategy

“PepsiCo business strategy integrates the following six principles:

1. Achieving growth through mergers and acquisitions (M&A)

2. Forming strategic alliances in global scale
3. Focusing on emerging markets
4. Focusing on organizational culture
5. Developing and promoting the idea of One PepsiCo
6. Innovation in marketing initiatives”

“The level of consumption of carbonated drinks in the US has been consistently declining for
the last ten years and this tendency is expected to continue for the foreseeable future. PepsiCo
strategy reflects this important tendency and accordingly, the company has been increasing
its portfolio to include food and snacks product categories to decrease the dependency of the
business on sodas and carbonated drinks.”

Structure

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“PepsiCo has a divisional organizational structure and the business is divided into six divisions.
Each division is led by a divisional CEO, who report to PepsiCo CEO and Chairman Indra K.
Nooyi. The company comprises the following divisions:

1. Frito-Lay North America (FLNA)

2. Quaker Foods North America (QFNA)

3. Latin America

4. Asia, Middle East & North America (AMENA)

5. Europe & Sub-Saharian Africa (ESSA)

6. North America Beverages (NAB)”

Systems

“PepsiCo business operations rely on a wide range of systems such as employee recruitment
and selection system, performance appraisals system, quality control system, complaint
handling system and others. The most noteworthy systems employed by the company also
include Smart Spending policies to rein in expenses and Lean Six Sigma training to cut waste
and boost efficiency.”

BCG Matrix

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Cash cow

“Cashcows are the products that have a high market. share in a market that has low growth.

For PepsiCo, Frito Lays is undoubtedly the Cash Cow for the company. Frito Lays
dominates the savory snacks .market in the U.S with a 36.6% market share.

In the tortilla and tostada chips segment, Frito lays command a market share of 72.4% with
strong brands such as Doritos and Tostitos contributing to this market share gain.

The product requires very less investment to maintain its market share and fight off any
competition.”

Stars

“The products or business units that have a high market share in high growth industry are the
stars of the organization.

In case of Pepsico, Pepsi falls in the Star quadrant of the BCG Matrix of Pepsi.Over the
years, Pepsi has faced stiff competition. from Coca-Cola and has also seen its market share
take a hit. The company has to spend. millions of dollars on brand awareness and
promotional activities in order to maintain its market share.”

“Because of stiff competition from Coca-Cola and changing customer preferences towards
healthy and low-calorie drinks, Pepsi is seeing a shift from STAR quadrant to Dogs quadrant.

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Aquafina is one other brand which can be placed in star quadrant, Aquafina holds 15% of
bottled water market share and is second to .Bisleri which has 36% market share.Aquafina is
slowly and steadily catching up with Bisleri and is expected to see a. twice a growth in the
next 5 years.”

“Tropicana and Gatorade amid falling sales of aerated drinks as consumers shift to
healthier drinks, Pepsico aims to .double the business of tropicana by 2020. Gatorade has
been a forerunner for Pepsi in sports drink market with a mammoth .77% share, whereas
Powerade has 20% of this market.

“Growing healthier lifestyle trends and emerging markets have .prompted the brand to invest
large amounts of investments in. healthier beverages and snacks in order to differentiate from
competitors and grow brand awareness.”

Question Mark

“There are products that formulate a part of the industry that is still in the phase of
development, yet the organization has not. been able to create a significant position in that
industry.

Diet Pepsi was launched with an aim to help Pepsico regain their market share but failed to
capture the desired response from the. customers and one of the major reasons for that was
tough competition from Diet Coke.”

“7up Nimbooz is one more brand which failed to succeed, launched in India in 2009, the
brand was not able to achieve significant sales volume.”

Dogs

“Dogs are those products that were perceived to have the potential to .grow but however
failed to create magic due to the slow market growth.
Pepsi - Seeing Pepsi in Dog quadrant will shock a lot of people but considering the present
and future scenario, Pepsi will see a .shift from Star to Dog quadrant.
Declining carbonated soft drinks segment share due to increasing demand for low calorie and
healthy beverages and. snacks is what is attributing the diminishing sales of Pepsi brand.”
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Future of the company

“PepsiCo, committed to grow its core brands such as Pepsi and Lays while continuing to
expand the more nutritious food and beverage offerings. As part of our overarching products
strategy, PepsiCo is taking aggressive steps .to meet evolving consumer needs and
preferences. Some of them are:

 Reducing added sugars, sodium and saturated fat in the food and beverages
 Introducing more nutritious options
 Providing clear labeling information about ingredients
 Adhering to responsible marketing policies
 Meeting the highest standards for food quality and safety

Aim is to continue building on this progress over the next decade, with plans to further
transform the portfolio as well. as significantly expand the food and beverage offerings
containing positive nutrition, with a focus on reaching more .underserved communities and
consumers with more nutritious choices.”

“Instead, the company is focusing on what it calls "everyday nutrition products," which
already make up 25% of global revenue. These include sports .drinks (like Gatorade and
Propel), Quaker products, fruit- and vegetable-based products (Tropicana and Naked juices),
water and. unsweetened teas, and snacks with nuts, grains, and seeds.”

PART B-THE PROJECT WORK

In PepsiCo I worked in the beverages department and I mainly worked on two brands – Pepsi
and Gatorade. I looked into different work areas for Pepsi and Gatorade.

Under the brand Pepsi the following are the areas which I have worked on:
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  Activated Pepsi Black in all the E-commerce sites.
 Facilitated launch of Pepsi black PET 300ml in CAP
 Market survey of Pepsi black through consumer immersions.

Under the brand Gatorade I have worked on:

 Gatorade awareness campaign through marathon activation

PEPSI

Pepsi has the following product depth:

 Pepsi
 Diet Pepsi
 Pepsi black
Following are the pack sizes available:
 Pepsi
 250ml CAN
 600ml
 1.5L
 2L
 2.25L
 Diet Pepsi
 250ml CAN
 600ml
 Pepsi black
 250ml CAN

1. E-commerce listing of Pepsi

Problems on e-commerce:

 It was seen that the product was not rightly available on the e-commerce sites in
which it was listed.
 Products were not rightly updated with the latest version of pack shots.
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  Many pack sizes were not available on the app.
 It was further noticed that there were hardly any promotional tools used on the
websites such as banners, shop by brands, widgets, offers etc.

Having done an in-depth study on the different tools, which could be used for e-commerce
advertisements on the basis of the clicks a person makes to check out and most visibility.
Shop by brand and banners are the most convenient and easy to put in cart tools to advertise
on e-commerce.

Implementation

Further I contacted the person concerned for handling the e-commerce sites for Pepsi and
provided him the Pepsi listing deck with the updated pack shots and details of the product.
Which further required me to contact people from other departments for bar code, product
details etc. The pack shots had the “Har ghoont mein swag” new update along with the hand
symbology.

The e-commerce sites on which Pepsi was then listed were:

 Big basket
 Grofers
 Flipkart
 Milk basket
 Amazon

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 Milk basket- Pepsi

Further on doing this I designed a banner with the in-house creative team for the e-commerce.
Which was made live on big basket and Grofers.

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 2. Experiential Learning project - facilitated launch of Pepsi black 300ml in CAP

Introduction

Pepsi black is available in 250ml Can only. To further diversify into the single serve category
of pack range the company decided to launch 300ml PET in coastal Andhra Pradesh as the
bottling was easily available whereas for other states it was not available hence CAP is the only
state where we focused to launch the 300ml PET for Pepsi black.

CAP includes Visakhapatnam, Vijayawada, Guntur, Rajahmundry, Kakinada, Eluru, Nellore,

Ongole.
On working closely with the launch team. I contacted various people from different
departments. I mainly contacted people from legal team, designing team and packaging
team.

Methodology

Ethnographic study

During the launch the following were the key points studied upon:

 Deciding on the colour of the PET bottle we first decided to keep the colour of the
bottle black transparent. But it was not getting approved by the legal team as the
company’s aim is to reduce plastic hence this colour was demanding low quality
plastic and less shelf life.
 Further on the labelling of the PET bottle. It was important for us to keep all the legal
mandatories as well as to see that the product is showing a good shelf throw. Various
changes in the alignment and placing of the mandatories was looked into.
 While creating the POSM we further communicated with the designing team in regard
with the placement of the product in the hand of our brand ambassador.
 Also we had decided to do the poster in the local language of Andhra Pradesh, i.e.,
Telugu. As that will attract more customers and people will be able to connect easily.

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Snapshots of the New 300ml PET Pepsi black (black transparent plastic)

Final 300ml PET Pepsi black (white transparent plastic)

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 POSM designed for launch of 300ml Pepsi black

Conclusion

Trends in the organisation

 It is mandatory to make sure with the legal team that all the mandatories are clearly
mentioned on the label designed.
 Each work to be executed by different departments and approvals to be taken from all
the different departments of the organisation.
 A fixed pattern of placing the mandatories is set and hence that needs to be followed
strictly.

Self learning

 All the steps which needs to be undergone during a product launch

 Designing of different marketing tools even before the launch
 How mandatories are to be looked upon and some of the key points of designing
labels.
 How a product can have a good shelf throw and attractive to the customer.
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 3. Consumer immersion for Pepsi black

I along with an agency went for consumer immersion market survey. We visited homes of six
consumers. All the six consumers were loyal to different brands of cola and had their own
preference. It was not known to the customers that we were from PepsiCo.

Objective

It was to understand the preference of brand by consumers in the cola category of soft drinks
as well as the perception and awareness of consumers with regards to Pepsi black.

List of questions asked for survey

 How is your typical day?

 What are the types of food you prefer to eat?
 Is there any kind of drink you usually consume while eating? If yes, then which drink?
 Have you consumed cola drinks? If yes, which ones?
 How frequently do you consume carbonated drinks?
 Have you heard about Pepsi?
 Are you aware of Coca-cola zero, Diet coke, Diet pepsi, Pepsi black?
 How did you get to know about Pepsi?
 Can you recall the price, advertisements, SKUs of any Pepsi product?
 What is the one thing you can recall about the product pepsi?
 Where do you usually purchase pepsi from?

We wanted to understand the basic lifestyle of consumers. These are some of the questions we
focused on while we were talking to the consumers.

The six consumers were of different types in regards to the product consumed by them:

i. Coca-cola user
ii. Pepsi black lapser and limca user
iii. Pepsi black lapser and coca-cola user
iv. Pepsi black loyalist
v. Pepsi black loyalist
vi. Diet coca-cola user

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Results

i. Coca-cola user
Name- Akshi Gupta
Packs purchased- usually can
Mostly consumed- consumes mainly with pizza
Packaging – she could rightly differentiate between the diet coca-cola and coke zero
packaging.
Pricing- She was not very clear about the price points of all the SKUs.
No. of intakes- once or twice a week.
Conclusion – She was a loyal customer of Coca-cola. Also she mainly prefers to drink
Diet coca-cola. She did not prefer Pepsi mainly due to less of fizziness and found Pepsi
to be very sweet in taste. She had seen a Pepsi black can but had never consumed as
she always perceived it to be a very premium product.

ii. Pepsi black lapser and Limca user

Name- Sriya Raheja
Packs purchased- prefers to buy 1.5L PET bottles.
Mostly consumed- Consumes mainly with finger food,momo and restuarants.
Packaging- clearly remembers the packaging for diet pepsi as well as pepsi black .
No. of intakes- usually once or twice a week
Pricing- perceives that Diet pepsi is premium and hence costly. She also believes that
CAN is more costly than PET bottles.
Conclusion- Pepsi black lapser due to medical reasons and as she now prefers to drink
more of white drinks rather than cola drinks. Hence a pepsi black lapser and limca
consumer.
iii. Pepsi black lapser and coca-cola user
Name- Shyan Kundu
Packs- PET and can
Mostly consumed with – burgers, restaurants
Packaging- Remembers the packaging of Pepsi Black
No. of intakes- twice –thrice a week

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 Conclusion- Pepsi has become more sweet and hence Coca-cola is better than Pepsi.
As well as likes more fizz in carbonated drinks.

iv. Pepsi black loyalist

Name- Pranav Sharma
Packs purchased- Can
Mostly consumed- after work
Packaging – he could rightly recall the packaging of pepsi black.
Pricing- remembers all the prices of PepsiCo products.
No. of intakes- Almost everyday
Conclusion- He is loyal to Pepsi black and loves the product as he feels right amount
of sweetness is added. After affect in the throat is also very less hence fizz is perfect.

v. Pepsi black loyalist

Name- Abhijeet

Packs purchased- Can and PET 300ml

Mostly consumed- with burger,pizza,pasta.

Packaging- finds packaging very attractive for Pepsi black

Pricing- Remembers the pricing of all the SKUs of Pepsi

No. of intake- once or twice a week

Conclusion- He totally loves the Pepsi black as it has zero sugar and zero calories and
after taste is also good as well as a apt amount of fizz is there. He is also ready to buy
PET bottles of Pepsi black if it is available but expects a more attractive packaging for
it.

vi. Diet Coca-cola user

Name- Hitesh Kousik
Packs- Can
No. of intake- Once in two days
Mostly consumed with- In malls, and restaurants.

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 Packaging – Was able to recall all the packaging of Pepsi but found the Pepsi black
packaging the most attractive.

Pricing- Remembers the pricing of all the SKUs of Pepsi

Conclusion- Doesn’t like the taste of Pepsi black and fizz is a major issue.

Conclusion

After all the survey done some of the points which was clearly understood about the product
Pepsi are- People are aware about the product and Pepsi black has a great shelf throw as even
if customers did not consume Pepsi black but at least its in everyone’s mind that the product
has a black packaging. The main issue noticed is due to fizziness and sweetness of Pepsi. It is
perceived by most of the consumer that Pepsi black and diet Pepsi is a premium product and
hence is costly. Pepsi black has a great shelf throw in the modern trade market. Also
understanding the view of the company, the black colour of the can was introduced to cut throw
the usual shelf colour ,i.e., blue.

Gatorade

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Gatorade is a world’s No.1 sports drink. It is distributed in around 80 countries.It was first
developed in 1965. Gatorade worldwide has a wide range of products namely:

 Gatorade thrist quencher

 Gatorade gum
 Gatorade bar

Gatorade India has just one product in the market and that is, Gatorade sports drink. Brand
ambassador for Gatorade India is P V Sindhu. Gatorade sports drink is available in two forms
– PET bottles and powder. It is available in three flavours – blue bolt, orange and lemon.
Gatorade current campaign is Nothing beats Gatorade. It has a negative growth rate of -7%.
Main competitors of Gatorade are enerzal, power aid and fast and up.

1. Problem solving project – Gatorade awareness campaign through marathon

activation

Introduction

The major problems associated with lack of awareness about Gatorade product are:

 People does not know the difference between sports drink and energy drink.
 People lack educational knowledge about the product.
 Not much marketing campaigns have been activated by the team in the initial days.
 Target audience was not well set.

Through the activation of marathons we will be able to increase the sales as well as educate
people about the brand. We will be able to target the right audience and at the right time. This

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will thereby benefit the brand to grow and set the right information in the minds of the
customer.

Approach adopted

To solve the above problem was we first brainstormed as to who is our target audience and
concluded that we had to target people at the time of sweat. Looking on a smaller perspective
the following are the places we can find the target audience mainly in gyms and marathons.

Our main objective was to create awareness about the Gatorade powders. Hence we decided to
do sampling through Gatorade powders (which are available in sachets). Seeing the current
trend and a sector where we can rightly position the brand was found to be marathons, hence
we started with marathon activations wherein I started by creating a database with the list of
all the upcoming marathons in Delhi/NCR. Further I set up meetings with the organizers of the
marathons and would negotiate in terms of deliverables for association between the
organisations. Having this on one side, I looked into the different marketing collaterals which
could be made for on ground presence in the marathons.

The association would consist of the following deliverables majorly but would vary from
organisations:

1. Gatorade to be the “Official Sports Drink Partner” for June 10K Challenge.
2. Gatorade logos to be incorporated in all banners/standees/backdrops and other
marketing assets.
3. Social Media – Promote co-branded content on all Social Media Handles
4. Mobile Numbers/Emails of all participants to be shared with us.
5. 2 Kiosks on the marathon track on the run day to Mix Gatorade powders in chilled
water (Water to be provided by marathon organizers and Gatorade to be mixed by the
marathon organizers as well) and given to the runners.
6. On ground Visibility in the form of standalone Gatorade banners/posters or standees.
7. Gatorade to be the only Sports Drink/Hydration Partner.
8. Gatorade logo to be present in the T-Shirts given to runners.
9. Gatorade to set up a kiosk in the Expo - details on Expo dates to be shared with us.
The marketing collaterals designed for marketing are:

i. Standee
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ii. Canopy

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iii. Backdrop

iv. BIB

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v. T-shirt

vi. Gatorade kits

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vii. Gatorade cups

viii. Gatorade sleeve for water tanks

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 ix. Photo bhooth

The marathons activated by me are:

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 a) Running champions league
b) Run for swachta
c) Strongman India league
d) Run against drug abuse
e) Run for your mom
f) Decathlon summer half quarter marathon
g) Run petal run
h) Freedom Run
i) Super sikh
j) Indian marathon league

And many more runs which are scheduled till December 2019.

Initially we focused mainly on Delhi/NCR region and have thereafter started focusing different
cities- Mumbai, Hyderabad, Bangalore. Each of these marathons had approximately 1000
runners.

I also spoke to influencers and scheduled meeting for the same. Influencers included people
who have big name in the marathon circles like Coach Ravinder Singh.

Conclusion

Gatorade was just like a new brand to be looked upon in India. Since the target audience was
not rightly set earlier it had undergone a huge loss. Small branding materials created a big
impact in the mind of the customers. Gatorade should hire agency for such tedious tasks as it
will have better execution and the process can be delivered much faster. I had successfully done
a sampling of 1,50,000 samples of Gatorade powder.

PART C- LEARNING

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1. Application of concepts, tools, techniques and skills learnt at IMNU
 Different marketing tools which can be used was learnt by me in marketing
management classes at IMNU. It was very helpful for me to take marketing decisions
for Below the line activities.
 Concepts on segmentation, targeting, product placement which was learnt as theory at
IMNU during my marketing classes.
 Concept of Product life cycle was also very useful.
 Concepts of e-commerce that was taught in IMNU was very helpful as I was able to
apply them.
 Excel workshop conducted in IMNU has been very helpful to me as my work involved
lot of excel use.

2. New knowledge, tools, techniques and skills learnt at PepsiCo

My work was mainly involved in launching of a product and creating brand awareness.
There were other sub- projects on e-commerce handles and consumer immersions.
My key learnings are as follows:
 About the company
I came to know about the different agencies the company works with for creative as
well as advertisements. The major agencies it works with are:
 J. Walter Thompson (JWT)
 H H Global (HHG)

JWT makes all the creative for the company which includes TVC, Social media creative,
and packaging creative. HHG majorly makes the different types of marketing materials like
the canopy, branded umbrella, cups and many other such marketing materials.

 Product launch
It taught me the different work related to a product launch. I was able to get deep
insights on the different areas and departments associated with launch of a product such
as labelling, packaging, marketing.
 Preparing reports

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 There was a daily report which we made to understand the sales. It included different
pack wise data of different states. I taught me how to analyse the % growth,
contribution, % plan achievement. I was able to get deep knowledge on how to present
the different types of data and through these analysis drive out the problems a particular
pack or a particular state might be facing.

 Targeting the right audience

Through these projects I was able to understand the importance of targeting the right
audience. As well as targeting them in a way they would like to see a product. Through
consumer immersion I was also able to understand how a company approaches its
consumers and understand the need of the customer.

 E-commerce
Through the e-commerce listing project. I was able to get an understanding of how a
company can list its product on e-commerce. And the different challenges a company
may face while listing the product. I also learnt how we can advertise on e-commerce
and make our product reach the customer at a least number of clicks.

 BTL activities activation

Below the line activation was a great learning for me as I was able to understand how
a brand which is so popular world-wide can create awareness in a particular
country/region. I learnt how we can educate people by word of mouth and leaflets. I got
an understanding as to how important such activities are to grow your brand awareness.

Soft skills learned

 This internship has taught me the importance of creating inter-personal relationship

with people from all departments.
 The dynamic Corporate culture of the company helped me to understand the people
management skills and interactions with department heads.

 It has helped me in gaining social skills which were majorly developed during the
interactions with outside agencies for advertisements and creative.

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  Maintaining each and every record and working as per the budget allocated to a brand
is very important for proper planning and execution.

 I was also able to develop my convincing skills.

References

http://pepsicoindia.co.in/brands/brand-explorer#Our-Brands
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http://www.economywatch.com/world-industries/fmcg.html

https://www.investopedia.com/terms/f/fastmoving-consumer-goods-
fmcg.asp

https://www.gatorade.co.in/

https://csimarket.com/stocks/balance.php?code=PEP&annual

https://www.google.co.in/search?q=expected+growth+in+fmcg+secto
r&source=lnms&tbm=isch&sa=X&ved=0ahUKEwjR1cCqnYrjAhXZ
fX0KHcoMBRsQ_AUIESgC&biw=1440&bih=701#imgrc=P7ZuN4x
Xef2lKM

https://economictimes.indiatimes.com/industry/cons-
products/food/pepsico-india-back-in-the-black-after-seven-
years/articleshow/66034662.cms?from=mdr

https://www.exchange4media.com/marketing-news/pepsi-to-launch-
har-ghoont-mein-swag-campaign-94927.html

https://brandequity.economictimes.indiatimes.com/news/advertising/t
his-summer-pepsi-s-new-campaign-aims-bring-alive-the-word-that-is-
set-to-define-2019-swag/68123002

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Appendix: Internship Certificate

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