TERM PAPER

OF
[Marketing Management]
TOPIC – “PepsiCo –Maggie (Noodle) .”

SUBMITTED TO - Nitin Dhir

SUBMITTED BY- NAME- Nitin
Bhardwaj
CLASS- MBA
(193)
ROLL. NO –
RS1903B57
 REG. NO. -
10907532

INDEX

1.Introduction of company
2.Business mission
3.Marketing objective
4.Situation analysis
• Industry analysis

• Competitors

• Customer profile

• Swot analysis
5.Marketing strategy
• Target market strategy

• Marketing mix
1.Product
2.prices
 3.Distribution
4. Promotion
6. Summary
7. references

Image: PepsiCo CEO Indra Nooyi.

Introduction of PepsiCo

PepsiCo is the famous brand of the world. It spread business nearly 200 countries

and territories in the world. This is over 100 years old but that corporation is not old

it is young. In 1965 two companies pepsi cola and frilo lay merged and that made a
new company that was PepsiCo. And in 1998 tropicana was also acquired by the

the PapsiCo. In2001 the company papsico merged with the qurker oats company.

Then papsico became a larger company in the world. There are large no of

employees are working in papsiCo. It is app. 198000 with revenue of $43 billions

. papsico world headquarter is located in New York. Its building was designed by

Edward Durrell Stone. It is seven building headquarters complex. The building

occupies 10 acres of a 144 acre complex. papsiCo will invest $500 million in India.

After three year these turnover will be triple .Its chairperson is Indra nooyi. In 1989

papcico entered in the Indian market it became india’s leading food and beverage

companies.

There are the larget no of direct and indirect suppliers and distributors in india. it is

app. 150000 suppliers and distributors.

There are some products:

1.Uncle chips

2.chees

3. lays

4. Lehar 5.kurkure

Some beverages are:

1. Pepsi
 2. mirinda

3. Dew

4. 7up.

5. tropicana

6. slice

7. aquafina

8. Tropicana nectors

MISSION

Papsico’s mission is to be the world’s premier consumer products company it

mainly focused on foods and beverages products. It provides many opportunities

for growth and enrichment to our employees our product mission is to fulfill or

satisfy the customers need and wants.

VISION

PepsiCo’s vision and responsibility is to improve all aspects in which we operate –

environment, economic and social factors. Its main vision to create a better

tomorrow then today. papsiCo is truly sustainable company.

Product : Pepsico is launching a new product , it is ‘PICO NOODLE’. There

are many compititors in the market. Like Maggie or so on. So according to

consumer or compititors Pepsico is using different stratergy for product launching.

MARKETING OBJECTIVE

When a company launch a new product or a company enter in to any new market

then there are some objective.

Some of these objective are is following:

1. Factual Information on nutrition content.

2. second objective is to improve or increase his goodwill.

3. company wants to increase the market share.

4. most important objective is that customers are aware of that product.

5. Their product satisfy the customers need and wants.

Some important tips to create a new product or product:

So if we want to launch a new product in the market. There are some tips which

knowledge is important to managers and top management of a company. that tips

is important for new product development. So there are some tips which is

beneficial for launching a new product.

These are following:

a. Do something you love and do it with someone you trust.

b. Do something you understand

c. Start with the end in mind

d. Protect your idea, invest in expert

e. Be ready for unexpected

COMPETITORS IN MARKETS

Competitors as companies that satisfy the same customers need to produce same

product in the markets. There are many competitors who is us aing different

strategy to defeat the substitutes product in market. Every company try to be best

in market so they wants to launch his best product in the different market and they

want to gain maximum profit .

If I talk about so there a large no of noodles competitors like Maggie and so on.

Maggie is the main competitor of PapsiCo in Indian market. And second thing is
that Maggie and papsico’s noodle is targeting the same market. So it will be the

main competitor of PapsiCo in Indian market. So while taking decision to launch a

new product we carefully study about the competitors strategy in the market. The

most popular brand of a noodles in the Asian market is Maggi.

Main compititors of noodles in market are following:

“Noodle brands”

Ching's Secret

Indomie

Indomie Mi goreng

Koka noodles

Maggi

Maggi noodles

M cont.

Maruchan
Mr. Noodles

Nissin Foods

Nong Shim

Pot Noodle

Sapporo Ichiban

S cont.

Science Noodles

Smith & Jones instant noodles

Super Noodles

The Nation's Noodle

Wai-Wai (food)

CUSTOMER PROFILE

The product is Pico noodle which is for working women , youth and healthy

conscious people and they are targeting children and their mother s. The company

will be focusing on all of the india . As the product is low priced so the product will

be catering to the demands of the middle level income and lower middle income

people.

Swot Analysis Of Pepsi Co.

Strength

1. pepsico has a broader line and outstanding reputation.

2. Great brands, strong distribution.

3. Record revenue and increasing market share.

4. Market leader in their segment.

5. Strong brand loyal consumer bare.

6. wide range of distribution channel.

7. product according to the need of Indian consumer.

8. innovative product.
Weakness

1. Product are dependent on each other.

2. Not all pepsico products bear the company name.

3. Pepsi hard to inspire vision and direction for large global company.

4. Not so much presence in rural market.

Opportunity

1. Food division should expand internationally

2. Increasing number of working youth.

3. There are increasing trend toward healthy foods

4. Focus on most important customer trend - "Convenience".

Threats

1. F&B industry is mature

2. Price war with compititors.

3. Over 50 percent of the company's sales come from Frito-Lay; this is a threat

if the market takes a downturn

4. PepsiCo now competes with Cadbury Schweppes, coca-cola which are

well-run and financially sound competitors.

 5. Size of company will demand a varied marketing program; Social, cultural,

economic, political and governmental constrains.

STPD Analysis

Segmentation Target Positioning Differentiation

ing

Age Kids Fast to Taste

cook good

to eat

Eating Habits Youth Delicious Flavours

Lifestyle of urban Working Packaging

families Women

Health

conscious

people

Segmentation:
The basis on which Papsico will be segmenting Pico noodle will be dependent on

three factors that are following:

1. Geographic segmentation

2. Demographic segmentation

3. Psychographic segmentation

Geographic segmentation : the first basis that the company will segmenting the

market will be the geographic segmentation .

The company will be initially focusing on the all of the india at same time. so there

is a good market for this product . The product will be then launched in other

regions depending on the demand .

Demographic sementation: the segmentation on the basis of demographic

segmentation depends on the personal factors of the consumer . eg age, gender,

income level etc .

According to the demographic segmentation the Pepsico will be targeting children

and working women . This product will be lower in costs compared to other

noodles so it will be targeting the lower middle class and the middle class.

Target market strategy:

Pico noodle mainly focus from working women , youth and healthy conscious

people and they are also targeting children and their mother. This the main
 strategy which Pico noodle is using for new product development. Pico is also

targeting its products at the entire family and not only kids.

Once the firm has identical its market segment opportunity, it has to decide how

many and which once to target . Marketer are increasingly combining several

variable in an effort to identify smaller, better defined target group. while

selecting a target market a Papsico consider main five key criteria:

• Measurable

• Substantial

• Accessible

• Differentiable

• Actionable

According that criteria pepsico is targeting the human.

Positioing:

Pepsico will be positioning the product . The product will be low priced than

the other Noodless like ,Maggie and other Noodle . The company will create

a awareness about the product and they are advertizing that product . It is

easy to cook and good to eat.

Marketing mix:
 Marketing decisions generally fall into the following four controllable categories:

1. product

2. price

3. Place

4. promotion

The term “marketing mix “ became popularized after Neil h. Borden published

his 1964 article, the concept of the marketing mix. Borden begen using the term in

his teacting in the 1940’s after James Culliton had described the marketing

manager as a”mixer of ingredients”. The ingredients in Borden’s marketing mix

including product planning , pricing, branding ,distribution channels, personal

selling, advertising , promotions, packaging, display, servicing, physical handling,

fact finding and analysis. E.Jerome McCarthy later grouped these ingredients into

the four categories. These are the 4 P’s of marketing mix.

These 4 P;s are the papameters that the marketing manager can control ,

subject to the internal and external constraints of the marketing environment. The

goal is to make decisions that center

The four p’s are the parameters of the marketing environment. The goal is to

make decisions that center the four P’s on the customers in the target market in

order to create perceived value and and generate a positive response.

4 p’s of marketing Mix:

The four marketing dicision variables are :

Price variables:

1. Allowances and deals

2. Distribution and retailer mark –ups

3. Discount structure

Product variables:

1. Quality

2. Models

3. Packaging

4. Brands

5. Service

Promotion variables:

1. Advertizing

2. Sales promotion

3. personal selling

4. publicity

Place variables:
 1. channels of distribution

2. outlet location

3. sales territories

4. warehousing system

Pico noodle 4 P,s

Product: pico noodle is available in different variants:

1. Pico ketchup pico ht, pico masala, pico chilligarlic sauce, pico

tomato , pico teekha masala, tomato pudina.

2. The product is bright red in colour.

Promotion:

Major decision in promotion:

When we promote a new product in market then we take major decision for

promoting their product and these are following:

• Establishing objective.

• Selecting trade promotion tool .

• Selecting consumer promotion tool.

• Selecting business and sale force promotion tools.

 • Develop the program.

• Evaluation and pretesting.

• Different Communication Media useing by PepsiCo:

So the Pepsico is using different type of promotion strategy for promoting pico

noodle their marketing , these are following:

 1.They promote their product very effectively through television.

2. they have applied the strategy of brand extension.

3. they also sponser various cookery shows to promote alternaye usage

of products.

4. they also use strategy of free product samples to promote it.

5. Celebrity endorsements eg. Javed Jafferi promotions

6. Pico noodle is distributing free in schools and offices to promote trial.

7 .Return gifts on empty packs

Place:

The main headquarter of Pico noodle is in New delhi , it provide public

employment opportunity and so that by trying this step help to

maintaining and improving in Indian economy.

And distribution s good means moving the product from producer to

customer , so that many marketing intermediaries trying to fulfill this gap

there are many gap which comes between producer to customer. These

gaps are following:

• Time gap
 • Space gap

• Quantity gap

• Variety gap

So that Papsico choose different channel for different group of customer for

launching pico noodle these channel are following:

1. Zero channel: it mean manufacture to consumer, means a normal

consumer directly go to manufacture house and purchase product.

2. One level : it means one mediator are exist between the manufacture

and consumer it means customer buy the product by retailer.

3. Second level: it mean between the manufacture and consumer exist two

members and that is wholesaler and retailer , so if any consumer want to

buy this product then he or she contact to these people.

4. Three level: it means three people are exist between the buyer and

manufacture and that is wholesaler, retailer, and jobber.

So that Papsico using different type of distribution channel in different areas

because in india live different religions people so Papsico use different method for

distribution of their product.

 Price:

1. Its pico rich Tomatoes is priced at Rs 80 ( 1kg with 25% free offer).

And 200 g is in Rs.25. ,100g –RS.10

2. Pico ketchup; its price is 35 (500kg with 20% free)

3. pico masala :we decide its price is Rs.100 (1kg), Rs 30

(250g ) , Rs 15(100g)

4. pico chilligarlic sauce :Rs.80 (1 kg)

5. , pico tomato :Rs 25 (250kg )

6. , pico teekha masala: Rs 75(1kg with 10 % free, Rs.40- 500g)

PRODUCT DIFFERENTIATION

Product differentiation strategy means how a particular product is different

from others on the basis of:

1. Form

2. Features

3. Performance quality

4. Convenience
 5. Durability

6. Reliability

7. Style

According to our product, there are different form, shape, size, physical structure of

Pico noodle which is very attractive as it is easy to carry, comes in various packs

and sizes according to customers convenience. For example pico ketchup packs

which is a smaller in quantity consumption variant.

There are various another features of Pico Tomato Ketchup are first is perfect

taste according to the Indian touch & spices or so on, its pocket ability factor,

packaging, easily transformation of recipe according to the different tastes of

consumers in the market .we decide it according to the price of that product.

We decide it according to our survey report we found out in the market. According

to survey find that what is the consumer preference, what the other brands offered

to our target market. So the Pico noodle is launching different product according to

consumers taste, less consumption of time in preparation, prices, pack etc.

Quality is the main factor on which Pico noodle is using. . As all the products of

which is produce by the Pico noodle are identical which fulfills its promise to its

target market.

Pico products are durable it mean we keep it for long time or these products

are easy to store.

It is an Indian customer’s psychology that “whatever looks good and feels

good would be of good quality” so according to consumer’s psychology we

designed pack good quality, its promotional schemes, color of the packages

and the pictures depicted on the pack appeals to the customers.

Summary:- so lastly Pepsico launching its new product Pico noodle .

Papsico is using different different strategy . all the above thing is necessary

Iin launching a new product. Pepsico itself a strong brand in the market. So

this is also a positive sign for Pico noodles development. So its become

easy for company launching new product.

Reference:
http://www.pepsico.com/index.html

http://www.google.co.in/search?
hl=en&q=history+of+papsico&btnG=Search&meta=&aq=f&oq=

http://www.google.co.in/search?
hl=en&q=swot+analysis+of+papsico&btnG=Search&meta=&aq=f&oq=

http://www.pepsico.com/Company/Our-Mission-and-Vision.html

Book: Philip kotler