every indian

7/30/2019 Every indian

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Every Indian Every DayCan YOU help PepsiCo India realize this visi


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Manu Anand (President, India Region) is a hPepsiCo in India is the largest F&B compconsistent high double digit growths acrportfolio. A frequent award winner for b

achievements, socially responsible corpemployer etc, he has every reason to satisfied.

However, success never rests on its laurels, and yeh dil always maange more! Onechallenges is that even while PepsiCo growth is so healthy, it is largely from the midaffluence pyramid. To truly realize the immense potential of the India opportunity, touch every Indians life every day!

Inviting Indias brightest young minds to help Manu draw up exciting plans that willmore proud of the India regions performance


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Q: How can PepsiCo grow profitably Indias affluence pyramid?

Case structure:

1. About PepsiCo

2. PepsiCo India and our Vision

3. The India Businesssome fundamentals

4. Our Business Problem5. Some Insights that can help you unlock the problem

6. What we need from you

7. How we will evaluate


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Case structure:

1. About PepsiCo

2 PepsiCo India and our Vision


4. Our Business Problem5. Some Insights. that can help you unlock the proble




5/74

$26 m

foun

Water Global Awards-Environmental Company

of the Year

3rd in CR Magazine- 100Best Corporate Citizens

World No.2 in F&B

Presence in 200 countriwith over 500 brands

22

285,000 emplo

PepsiCo: Great Performance, Great

World No.3 in FMCG

Ranked 1st in 2011 Dow Jones

Sustainability World IndexF&B sector

Revenues $65 bn

Q


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Case structure:

1. About PepsiCo







7/74

A brave and ambitious vision for Pepsi

Nourishing & Delighting

Every Indian Every Day

Most Lov

> Local co

> Offer gre

Most Inno

> Highly d

> Healthy

Most Pow

> Most ac

> Most aff

Most Lov

> Our Con

> Our Envi


8/74

PepsiCo India: An Exciting Journe

VOLUME

TIME

1993

1998

2002

20062008

2011

2010

2009

1995

1996

1999

2000

2012


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AMCHAM InnKo

Golden Peacock AwardWater Conservation

CII National AwardWater Management

Water Digest AwardFor Water PracticesSocial Governance AwardWaste to Wealth

PEnviron

PepsiCo India: Performance with Purp

Q


10/74


Case structure:

1. About PepsiCo






S d i b h i t t


11/74

Success driven by cohesive strategbusiness components

1. A wide range of ready to drink beverages (LRB) andLRB: Carbonated soft drinks (CSDs), Juice drinks, water, sports drinks, ic

Foods: Potato chips (PC), Extruded snacks, Baked crackers and Oats

2. Wide manufacturing footprint helps delivery at optim3 plants, 14 bottling units spread across regions, regionally emp

3. Lovemark BrandsLays, Pepsi, Kurkure, Mt Dew, Slice, Tropicana, Quaker...

4. Robust S&D ModelOwn retail store space (racks and coolers) for all our categories

5. Innovation Ahead of the CurveNimbooz, Aliva, Gatorade, Lipton Ice Tea

6. Talent MagnetTop FMCG recruiter at campus, Awarded Great Place to Work consi


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Core Products

The Beverages portfolio

Premium Products

Value

Products

Carbonated SoftDrinks (CSD)

Juice Based Drinks(JBD)

Water

Juices

Sports Drinks

Ice tea

Water

Pepsi/7Up/Mirinda/Mountain Dew

Evervess Soda

Slice

Nimbooz

Aquafina

Tropicana

Gatorade

Lipton Ice Tea

Himalayan

TATA Gluco+

TATA Water+

200ml glass250ml can 600ml PET R2ltr PET Rs.5

300ml glass

200ml glass500ml PET R

500ml PET R2ltr PET Rs.2

100% : 200mRest of Ran

Powder Rs.

350ml PET R

200ml PET R750ml PET R

200ml cup

200ml pouc

200ml glass200ml tetra1.2ltr PET Rs


13/74

Salty

The Foods portfolio

Cracker

Oats

Potato Chips

Bridge

Extruded

Lays

Uncle Chipps

Kurkure

Cheetos

Aliva

Quaker

13g R

Kurkure Extruded(Monster Paws/

Puff Corn)

Traditional Lehar

Lays Baked

13g R

9g 5

Solid

1

8g 52g Rs.1

200

1000g R


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Both categories extremely large, grow

Potato chips

25%

Extruded &

Bridge 25%

52%

24%

Salty Snacks Industry (Volume)LRB Industry

17%

26%21%-28%

26%

10%

25%

Growths

Salty snacks is an approximatel

PepsiCo by far the lead player

Other national playersITC, Pa

Significant regional players, Hal

Indian LRB industry is approx Rs. 48,000/- cr

PepsiCo and Coca Cola are the dominantplayers, Parle the third major player, followed byDabur.

* The percentages in white boxes denote the respective growth%


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Per Capita Salty Snac

Branded as % of t

2009 2013

0.2

0.35

Kg. per capita

2010

4%

Per Capita LRB Consumption

Packaged as % of total volume

2009 202020152013

32

70

99

209

2010 2020

10%1.5%

China: 175(in 2010)

With massive headroom for category

t t t d k S ll li


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A vast & structured Make-Sell-Deliver

Kolkata

Pune

ChannoBazpur

Jainpur

Sataria

Panipat

Bharuch

Mahul

DukesAurangabad

Roha

Hyderabad

Bangalore

Palakkad

Chennai

Madurai

Jammu

Phillaur

Delhi Noida

Chaupanki

KosiJodhpur

Bhopal

Nagpur

Jharkhand

Patna

Cuttak

Vizag

GunturGoa

Dharwad

Guwahati

Pondicherry co-packer

Trichy co-packer

Company owned bottling plants

Franchise owned bottling plants

Foods plants

Beverages

Plant

Distributor

Hub

Wholesaler Urban spoke

Ruralspoke

Retailer Retailer

Retailer

Retailer

Kolkata

Pune

Channo

Erode

Rajkot

Hosur

Guwahati

Sonepat

Gwalior

Bangalore

Kolhapur

FaridabadBhiwadi

Hyderabad

Kanpur


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Building Brand Love a critical prior

To gain consumer love for our brands, and max

investments in brand building, we ensure that

Each brand has a distinct role in the portfolio, so that eprovide choice in a repertoire category, we minimizcannibalization.

Every brand answers to a clear consumer need, has acultural and sensorial language, and above all, conneconsumers at a deep emotional level.


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Youth Aspiration

InternationalFlavors,Irresistible Taste

Ol

SuNoHe

Women & familyguilt freeindulgence

Enjoyable Grains

Family: ModernTwist on Tradition

Kitchen LogicIngredients

En


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Indian Adults/Family Snacking

Traditional IndianNamkeens

Joy of Sharing

Tweens

Light & Fun Shap& Flavours

CheesyMischievous Fun

(Younger) Adults,middle class

Hunger Filling,Satisfaction

Bole Mere Lips...I Love Uncle Chipps


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Youth: YouthfulIrreverence

Electric Taste of

Cola

YoCo

M

Bo

Young Adults:Mood Uplifting

Lemon

Refreshment

Youth: ImpulsiveUninhibited Fun

Bold Orange Taste


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Youth/YoungAdults: SensorialPleasure

Mango Indulgence

All Adults

Quality, Purity, Taste

The Purest Part of You

Metros, Adults:Breakfast Nutrition

9 Fruit Nutrients

Make Breakfast 100%

Spo

Reh

Ach

Is

S&D M i t i bl & t ff


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S&D: Massive, yet nimble & cost-eff

To deliver our range of food & beverage products within

reach, our GTM is designed to:

Reach all corners of the country

Go deep within each state, to reach rural consumers

Ensure all our skus are available and visible (jo dikhta hai wo

Be agile & nimble to deal with marketplace dynamics

Service all kinds of retailers and channels

Cost-efficient structures, smooth processes a must!


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Indias Retail environment is highly hetero

Traditional Grocers dominate trade tod


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C

D

C

F

Bbsn

M

D

C

S

FMCGChannels

ValueContribution To

FMCG %(Approximate)

Growth %2011

/2010

# Stores('000) ,2011

Grocer 58 13 3561

GeneralStores

14 22 761

Chemist 9 26 252

Pan Plus 6 23 1139

Food Store 4 30 162

Modern

Trade5 32 ~ 4000

Traditional Grocers dominate trade todModern Trade growing rapidly

Present across all types of retail ou


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Present across all types of retail ou

A t titi d t


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A strong competitive advantage on

Segmented

GTM designCapable

Partners

Organization&

Processes

Chilling/RackInfra

Technology

CapablePartners

Organizationand

Processes

Over 1 mm chillers andracks in the countryown

retail shelf space

Span

Stron

Form

Setup of right partners- Scale Distributors

- Distributor consolidation

Standardized distributormanagement processes

SAM

-

Reainveauto

GTM Approach Looks At 3 Dimens


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Premium

Core

Value

MT

A

B

C / Non LRB

Rest O

Customer Segments GeographProduct Categories

ModernTrade (MT)

A

B

C

Organized trade, Hyper, Super, Dailies,

Stand-alone Modern Trade

Volume per outlet 800+ Cases Per Annum

Metro / 5

RO

Rur

GTM Approach Looks At 3 DimensSegmentation

Volume per outlet 250+ Cases Per Annum

Volume per outlet < 250 Cases Per Annum

Segmented GTM has further strengthened


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Product Categories Customer Segments Geographies / TowClasses

Premium MT,A Metro, RoU

Core MT, A, B, C AllGeographies/Town

Classes

Value B (lower end), C/NonLRB

Metro, RoU, Rural

Segmented GTM has further strengtheneddistribution muscle

G id t diff t b i d i


29/74

Guide to different business driver

BEVERAGES ProfitabilityDrivers

RevenueDrivers

VolumeDrivers

Category CSD, Mangodrink, Juices,

Water

CSD, Juices,

Water

Water, CSD,

Juices

Brand Mirinda, MtDew, 7 Up,

Pepsi,

Pepsi, Mirinda,

Mt Dew, 7Up,

Aquafina

Pack SSPet, Glass, SS PET, Glass,MS PET

MSPet,

Geography Karnataka.Tamil Nadu,

Uttar Pradesh

UP, Tamil

Nadu,

Haryana,

Punjab,

Karnataka

UP, Tamil

Nadu, Punjab,

Haryana,

Karnataka

Channel TraditionalTrade

Traditional

Trade

Traditional

Trade

FOODS ProfitabilityDrivers

ReveDrive

Category PC, Kurkure,Extruded

PC, K

Brand Lays,Kurkure

LaysKurkuAliva

Pack Mid, Large SmaLarg

Geography North, East North

Channel TraditionalTrade

TradiTrad

Q: How can PepsiCo grow profitably


30/74


Case structure:1. About PepsiCo







31/74

India is many Indias!

Indias Affluence pyramid is bottom


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Aspirers(17%)

Climbers

(16%)

Strugglers(66%)

India s Affluence pyramid is bottom

Affluents(1%)

13 mm SEC A1

200 mm SEC A2/B/C/R1

195mm SEC D/R2

790mm SEC E/R3/R4

Please see appendix for a copy of the Socio-economic classification (SEC) grid

Individualistic, Evolved

Striver MMode

Actively

Hard working, CompromisingUncertain income, Rare small

treats

..who nonetheless have an increasi


33/74

..who nonetheless have an increasito participate in a new world re


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See video on how these consumer grare different

Video Name- Affluence Group

Current PepsiCo revenues mostly from
http://localhost/var/www/apps/conversion/tmp/scratch_5/Affluence%20Groups%20Final.mp4http://localhost/var/www/apps/conversion/tmp/scratch_5/Affluence%20Groups%20Final.mp4http://localhost/var/www/apps/conversion/tmp/scratch_5/Affluence%20Groups%20Final.mp4http://localhost/var/www/apps/conversion/tmp/scratch_5/Affluence%20Groups%20Final.mp4http://localhost/var/www/apps/conversion/tmp/scratch_5/Affluence%20Groups%20Final.mp4


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Aspirers(17%)

Climbers(16%)

Strugglers(66%)

p yearly initiatives in red

Affluents(1%)

ScaAqCh

Thoan

Neth

be

b

Ou

acthv

adv

Our Problem therefore


36/74

Our Problem therefore

How do we realize our vision of engaging every every day with a PepsiCo product?

What strategies do we pursue to grow volumes, reprofits in a way that ensures we delight and nouIndian home?

Product range Brands

Packs

Geography

Channel

Q: How can PepsiCo grow profitably


37/74

Q p g p yIndias affluence pyramid?




4. Our Business Problem

5. Some Insights that can help you unlock the problem



To help you get started, here are some


38/74

p y g ,

Understanding consumer attitudes to Food & Beverag

What is Value? How consumers make their Save vs. Sdecisionsinitial thought starter insights

Simple guidelines to value propositions that work, and business across the pyramid

Learnings from PepsiCos experiences in targeting lowthe pyramidValue Foods business, Nourishco

FMCG Growths driven by Foods, more


39/74

y

Source: Nielsen

ImpuCategory Performance across Food Segments: Growing @ 3.8% Volume & 17.2% Value

Source: HH Panel

The F&B environment is getting more c


40/74

Consumer bombarded with Choice Marketers entice throu

Modern Trade

Exposure to World Cuisines

Food Courts

g g

Over 500 new launches in F&B in 2011

Four consumer behaviors are drivin


41/74

Premiumization Commod

Indulgenceto Regular

Acc

Health has many meanings, ad l i d thi


42/74

Health = Not-Fall-Sick & Do-My-Work

Talking Health Walking Indulge

Energy Immunity Mental Agility

Eating well is a way of life, Physical activity is not

Balanced Meals 71% Never Exercise

Pleasure Foods

Personalized consumption (in stoo)

Quasi-meals growing

Indulgence is a good thing

Convenience is attractive but rart d d f f h


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Packaged branded food (impulse, RTE and health

foods) growing fastest within FMCG

Saving of effort appreciated > saving of time

Process simplifiers (Masalas, batter) growing

Ready meals, substitutes less popular

Off the Shelf Solutions Appreciated Yet, a strong urge for

89% households buy vegetablalternate days

Hot = Fresh

traded for freshness

Value = Money Well Spent!
http://www.google.co.in/imgres?imgurl=http://www.indianhouseofspices.com/images/MDH%20Kitchen%20King%20500g.jpg&imgrefurl=http://www.simplysensationalfood.com/2010/07/tri-colour-capsicum-and-potato-curry.html&usg=__VmJfw3QVGx2Pn9NY8PhSfDucZkc=&h=1136&w=736&sz=112&hl=en&start=20&zoom=1&tbnid=UOkfvuOyN4qabM:&tbnh=150&tbnw=97&ei=EQMLT_3INI3BiQe-1L2XCQ&prev=/search?q=MDH+masala&um=1&hl=en&sa=N&rlz=1T4ADBS_enSG365MX368&tbm=isch&um=1&itbs=1


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Value Money Well Spent!

Trans

A

Real QualityMaximization of ValueScope forSaving

SAVE SPLURGE

Is the pricingsuch that itallows for ascope forsaving beyondthe purchase?

Does it changereality? transformomenat least

Throughquality,the con

Does thepurchase deliverreal quality &trust? Is thepurchase seen asa true return onmoney spent?

Does the purchase derivemaximum benefits for themoney spent in terms of:

More volume/quantity

More benefits

Prolonged experience

Value: What satisfies me in a partici / t t


45/74

occasion/context

VALUE IS

WHAT KIDSLOVE

VALUE ISUTILITY +++

VALUE IS

MY FAV.BRAND

VALUE ISHERITAGE

VALUE ISGETTING

GOOD DEAL

VALUE ISCONVENIENCE

VALUE ISEXPERIENCE

VALUE ISWHAT

COMPLETESME QU

Save AND Splurge occur along perceived Value continuum
http://www.imagesbazaar.com/preview.aspx?id=139012&s=4


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perceived Value continuum

Move to lower labels

Reduce variety

Delay purchase

Portion control

CONTROL

Money out of Pocket

Cut down Trade down

Sacrifice Compromise

Abandon

Reduce freq.

Buy LUP

STRETCH

Maximizing Value

Challenge self

Smart Shopping

Compare prices

Loyalty/pay back

programs

Promotions/More for

less

Portion control

Advocate sharing

Reduce frequency

Compensatory Consumption

PERMISSIBLE INDULGENCE

Occasional Treats

Small Treats

High Permission Rationalize

Cut out frills

Manage experience

Delayed gratification

Special Treats

We use baby diapers

only when we go out

Now I mostly use Ghari ,

Surf excel only for

expensive clothes

I buy monthly grocery

from wholesale market to

get good rates

Instead of 2 separate packs, I

buy a family pack of chips and

ask my kids to share

Movie is a must but

instead of having a sit

down dinner, we eat at

the food court

We tailor our offers to suit consumer


47/74

CONTROL

Money out of Pocket

Cut down Trade down

Sacrifice Compromise

STRETCH

Maximizing Value

Challenge self

Smart Shopping

PERMISSIBLE INDULGENCE

Occasional Treats

Small Treats

High Permission Rationalize

Special Treats

Loyalty rewards

Wastage is a Crime Exchange Offers a b


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A glimpse at what consumers sabout Value- Watch the Video

Video Name- Value Video

Inflation & Slow economy pressuring c
http://localhost/var/www/apps/conversion/tmp/scratch_5/Value%20Video.mp4http://localhost/var/www/apps/conversion/tmp/scratch_5/Value%20Video.mp4http://localhost/var/www/apps/conversion/tmp/scratch_5/Value%20Video.mp4http://localhost/var/www/apps/conversion/tmp/scratch_5/Value%20Video.mp4http://localhost/var/www/apps/conversion/tmp/scratch_5/Value%20Video.mp4http://localhost/var/www/apps/conversion/tmp/scratch_5/Value%20Video.mp4


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More than half say their expenses have increased by 40 percent ormore and six-in-10 strongly agree that they are saving less than they didlast year.

As expected, lower income consumers are feeling the inflationarypressure the most. To survive, they are cutting non-essentials and someare even curbing on the essentials too. Surprisingly, upper incomehouseholds are impacted more strongly than the middle class. They arefeeling the pinch on their lifestyle as they try to sustain a status theyvebecome accustomed to. As middle income consumers have alwaysneeded to balance budgets, they are adapting better than otherincome segments. They carefully consider essentials versus luxuries,which is a practice typical for these households.

Hidden PositivesAs consumers cut back on spending, reducing food expenditures is notthe first imperative. Rather, spending on clothing, utility expenses,eating out and out-of-home entertainment and vacations/holidays arethe areas that get slashed first when budgets are impacted. In fact,fast-moving consumer goods (FMCG) sales may actually benefit ininflationary times. As budgets get reallocated, consumption on day-to-day grocery products actually increases.

Attitudes to F&B and to Save-Splurge dplace on pyramid
http://blog.nielsen.com/nielsenwire/wp-content/uploads/2011/11/innovation-pricing.png


51/74

Aspirers(17%)

Climbers(16%)

Strugglers(66%)

place on pyramid

Affluents(1%)

Pay for the Experienc

Compare pricAvail offers, Lar

ticket,

Portion Cofrequ

Low UnitCont

Global tastes, Experimentative,Wellness conscious

Basic Nutrition, Gap fil l,Rare small treats

Energy to sustain, Smallindulgences, Familiarity

critical

Seek variety, Energy to maximizelife, Taste & Indulgence with a

touch of familiarity

F&B Attitudes Attitude to spending, esp. du

Guide to success at different levels of


52/74

Middle of Pyramid Bottom of Pyramid

Starting point is non

negotiable

COST + Profit = Price PriceProfit = COST PROF

Business structure Med Volume Med Profit High Volume, Low Profit Low V

Expected returns Current term, short term Long term Medi

GTM Mass Mass, with Alliances NicheAllian

Manufacturing Mass Value production Mass Value production High prod

Key success Ps Place, Product, Promotion Price, Product, Place PromPack

Consumer Need Social Enabler, Trendfollower

Performance critical, Solvea real need

Indivireflec

Marketer Need Flawless execution,Discipline

Patience, Investment forfuture

Imag

Value Propositions & Strategies that W


53/74

From Dust to DollarsCreating value from underutilized

assets

Lock-In StrategyCreate a high barrier to switch to a

competitor

Blended Value PropositionTrue value is nondivisible, consisting of

a blend of economic, social, and

environmental components

Pricing Strategies

Down-sizing (grams reduction) minimfor impulse and non-essential productprice.

The premium segment is the strongedriver.

Small packs are less sensitive to pricingain higher revenue during price incre

Larger packs tend to be highly sensitchanges. Price increase will result in blosses.

Distribution is critical in mitigating infldistribution channels are significantly volume share for brands.

Brands provide value in many differe


54/74

Good to share with othersGood to eat with friendsBrand that my friends preferDifficult to stop once start eat

Has good tasteIs fun to eatIs great tasting

I feel proud to consumeMakes me feel good

Is a popular brandCan be eaten any

Good to eat with teaIs good to serve to guestsIs for the whole family

Good to eat at home

Better for you than other snacksUseful information on pack

Is a everyday kind of snack

Is a very high Is always fresh

Is trusted & re

Attractive & Eye-Catching pack

Is an International brand

Is easily available

Have appealing advertising

Extent of importance of the dimensions vary across category cities & demo


55/74

Early learnings from PepsiCos initiatives the lower levels of the pyramid:

The Value Foods BusinessNourishco (value added hydration)

We anticipated that local brands play) will grow faster


56/74

Other Categories HaveGrowthDetergents

p y) gbased on learnings from other category experi

High Positive Correlation Of Penetration withValue Play

0

20

40

60

80

100

0 20 40 60 80 100

Degreeo

fpenetration(%H

Hs)

Salty snacks - 2015

Salty snacks - 2009

Plain biscuits

Toothpaste

Toilet BathroomCleaner

Tea2

Shampoo

Sanitary Protection

Noodles

Detergents

Coffee

Bar Soap

Degree of value1 play in category

(% sales by value)

Limited value play

Some value play

Significant value play

Nirma's value play structurally

4926

122+14%

+21%

1198019751970

48 80 180

22%

31%

Nirma's

launch

Volume (M To

Annual PCC (Gms)

Market Share (Surf / Ni

Nirma

Others

67%

--

Product: Better than laundry soap; Price: ~1/3 t

Reach: Started from Gujarat & than expanded; B

And understood what drives their suc


57/74

A Player Category CAGR 23% (Value CAGR 26%)

B Player Category CAGR 50% (Value CAGR 41%)

Vol M Tons

2005 2006 2007 2008 2009 2010 2011

Vol 27% 54%

Val 20% 44%

B

Play

Mix

Driven by proliferation of playersfrom1500

Advantaged Consumer Offe10-20% more than lead A Locally relevant taste, basQuality

More margins to the CustomOffer 20-30% more margin

Locally manufactured and dGo deep in a 200-300 km Passive GTM set-up throug

Low on Fixed Costs and nimPricing//seasonalityMinimal A&M//Fixed Mann

Simple yet Efficient B

And set up our Value Foods business a
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Daily//fluctuating monthly income(72% of the same is spent on food)

Make trade-offs between items notBrands

Believe in the tried and tested minimize risk

Looks for functional benefits

Evaluative shopperlooks for simplemaths for benefits

Dont stock upbuy small from theneighboring store

Focus on WHO X WHAT (At What Price)

Me Too (Ph 1) => Advantaged (Ph2)

Share Gain > Category Development

1. Provide engineer

2. Namkeesuccess

3. Selectiv

4. Umbrella

5. Region/

Key Insights About OurConsumer

With Businf

Led us to follow a simpleapproach

In LRB, despite low per caps, value ppossibly because of 2 large players and the absence of lo


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possibly because of 2 large players, and the absence of lo

Unpackaged

99%

Packaged

1%

3265

135175

China Egypt Pak India

Huge LRB Per CapsHeadroom

LRB in India < 1% of total beveragesconsumed; per caps restricted

Lower LUP a big ucatego

No PI play in low unit

Rs 1 2 8

Biscuits Detergent Soaps Te

% of Revenue from Valu

Welcome to the Value added world of beve


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Creators of the worldscheapest car

World

A JV between two giants!

Nourishcos focus is on value added hat both top and bottom ends of the pyra


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p py

Aspirers(17%)

Climbers(16%)

Strugglers(66%)

Affluents(1%)

Indias first

fortified water:taste neutral, inboth pet and

water,launched with

Zinc

200ml

Rs 2/-

750ml

Rs 16/-

r

r

Premium source water fthe Himalayas



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India s affluence pyramid?








Help us with answers to


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What is the right brand x pack x geography portfolio of brands mix (keeping in mof existing brands: new brands) for the different consumer groups across theAnd why do you say so. Please outline clearly the principles of making thes

What is the most effective (driving volumes/growth) and efficient (profitable) waydifferent consumer groups (Reach as defined by GTM model AND Reach almodel):

To drive penetration, getting to new consumers that currently dont eat/drink our brandsTo drive frequency, getting existing consumers who already eat/drink our brands, to eat/

Which other company in India should be the benchmark company for PepsiCo toarea? Please give a detailed account of points 1 and 2 above for them, an

And please present back at least 1 case study, but preferably 2 case studieCase study of a company that is able to straddle many consumer groups on the ladderCase study of a company that has focused on only one (or two) groups of the consume

Based on your primary/secondary research, please recommend consumer solutinew packaging, new channel, new pack, etc.) that we could be missing, inmeaningfully against one or more of the consumer segments

E.g. a simple framework like thisAffl t A i Cli b St l


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Affluents Aspirers Climbers Struggle

ConsumerOfferings

1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4

Product Range

Brand

Brand Promise

Pack

Price

GTM Model

Geography

Channel

Growth Driver for PepsiCo

Volume

Revenue

Profit

Othere.g.

penetration/frequency



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India s affluence pyramid?








CONTEST 2012 PhasesPhase One-


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In phase one- we expect you to submit a short summary of your solution- not exPowerpoint Slides or 3 MS Word pages.

Phase Two-

A PepsiCo panel will go through and evaluate all the submitted entries.

The shortlisted teams (on the basis of the brief summary) will be expected to detsubmitted in Phase 1. You need to submit a solution in MS Powerpoint and nslides.

Phase 3- The India Finals

After we receive the detailed solutions in Phase 2, the panel will shortlist the Topthe country and the best team from each campus

The Top 6 teams will be invited to Gurgaon to present their solutions to the IndiaLeadership Team

Phase 4- The Grand Finale!

The winners selected at India level will fly to New York to present to Indra

Not more than 5 MS Powerpoint Slides or 3 MS t ill b t t i d f th fi t h


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If we receive more than the expected number of slides/pages slides/first 3 pages will be considered.

If shortlisted, you will get the chance to submit a more detailednext round.

Evaluations will be on the basis of:

Appreciation of the business problem

Power of Insight identified for the situation analysis

Case parallels usedappropriateness and depth

Creativity and Feasibility of solutions proposed

Clarity of articulation/presentation

per entry will be entertained for the first sh


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There are no limits to growth beca

there are no limits of human intellige

imagination, and wonder!


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Every Indian Every DayCan YOU help PepsiCo India realize this visi

Appendix


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1. Socio Economic Classification (SEC) G

2. ESOMAR Paper3. Glossary

4. Websites for more detail on our brand

www.pepsico.com

www.pepsico.in

Urban SEC Grid:Based on education and occupation of the chief wag
http://www.pepsico.com/http://www.pepsico.in/http://www.pepsico.in/http://www.pepsico.com/


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EDUCATION

CIRCLE SEC CODE Illite-rateLiterateno

school

School up to

4 yrs

School5 - 9

yrs

School10+ yrs

HSC+/ not

Grad

OCCUPATION CODE 1 2 3 4 5 6

Unskilled Workers 1 E2 E2 E2 E1 D D

Skilled Workers 2 E2 E1 E1 D C C

Petty traders 3 E2 D D D C C

Shop owners 4 D D D C B2 B1

Businessman/Industrialistswith no. ofemployees

None 5 D C C B2 B1 A2

1-9 6 C B2 B2 B2 B1 A210+ 7 B1 B1 B1 A2 A2 A1

Self employed professionals 8 D D D D B2 B1

Clerical/Salesman 9 D D D D C B2

Supervisory level A D D D C C B2

Officers/Executives - Junior B C C C C B2 B1

Officers/Executives-Middle/Senior C B1 B1 B1 B1 B1 A2

Rural SEC Grid:Based on the Chief wage earners education, occupatio

the type of house


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the type of house

o LRB (Liquid Refreshment Beverages)- Ready to drink packaged drinks

o CSD- Carbonated Soft Drinks

Glossary


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o MBD- Mango based drinks

o BD- Juice based drinks

o Extruded- Range of puffed snacks made of rice/corn available in different shapes/colourstypes: Cheese balls/puffs/Tomato wheels

o

Bridge- All New Age snacks that are neither potato chips nor conventional Indian namkeetaste/texture/palette from both. Product types: Shapes/textures/flavors like irregular sticks/

o PC- Potato Chips

o Cases Per Annum- Average Number of cases sold by the category of outlet in a year

o SAMNA- Stands for Sales Automation Management for New Age. It is a Power of One Go for PepsiCos Beverage and Snacks businesses.

o MS- Multi Serve; SS- Single Serve

o Hub: They are large distribution centers who receive stocks from PepsiCo factories / WH; St

as to have better efficiency of cost in maintaining stocks, delivery & traffic; They maintain condition; They ship the stocks to spokes as per PDP / order confirmed by RSP ; Spoke is thand Outlet in PepsiCos Distribution System.

o Urban Spoke: Is a small distributor in a suburb close to any major City. For the reason of viacoverage, if the city distributor is not in a position to supply regularly to those markets, Urbadistribution width.

o Rural Spoke: Typically appointed in any Rural market. Classification of Spokes: 6000 AOP: A class.


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So Many Different Suns!how successful brands hit the conflux o

affordability and aspiration

ESOMAR paper presented at Asia Pacific Confer
http://localhost/var/www/apps/conversion/tmp/scratch_5/SoManyDifftSuns.pdfhttp://localhost/var/www/apps/conversion/tmp/scratch_5/SoManyDifftSuns.pdf

every indian

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