SWOT ANALYSIS

In order to get clear understanding of the position of Diet Pepsi in the various markets we did a
SWOT analysis from the data obtained from the survey and the various retailer interviews

STRENGTHS:

PACKAGING AND PRICING – Pepsi has the advantage of having provided the same kind of
health based carbonated drink the Slim Diet Pepsi Can which in comparison to the Diet coke is a
much more attractive offering because it is slim sleek equally healthy and way cheaper.

DISTRIBUTION –

As already mentioned Pepsi India has one strongest and most efficient sales and distribution
networks not only in India but also throughout the globe. Also in the particular market where the
survey was done the sales people have developed a network which is powerful enough to make
or break sales for Pepsi in any given quarter.

P R – One of the most important factors of success of PepsiCo in India is the relationship the
company and its constituents have with the channel partners. The Company officials and even
the employees of FOBO have very good rapport and relations with the Channel partners. Also
the recently introduced retailer benefit schemes such as the gold card membership and other free
gifts and offerings not only motivate the retailers but also helped us create visibility for the Slim
Diet Can range in a profound. The experience of working with people who welcome us with a
smile rather than a frown will always be remembered.

NON-CARBONATED – This is one those strengths of Pepsi that often goes unnoticed but plays
a very important role in success of Pepsi in India and even around the globe. The non-carbonated
segment is dominated by Pepsi, Tropicana is the market leader in fruit juices. In the mineral
water segment, Aquafina clearly outsells Kinley without ay fuss.
Bottling – Pepsi has the advantage of being in partnership with the largest bottler in India, the R
K Jaipuria Group. RKJ Group controls almost 65% of the bottling operations of PepsiCo in
India. At times this is also seen as a weakness of Pepsi in India attributing to the fact that the
Jaipuria group is so strong that in certain circumstances it can even defy the parent Company.
Pepsi – Pepsi Cola is the biggest strength of Pepsi as it is the market leader in the Cola segment
and clearly outsells both the products the Coca Cola Company namely Coke and Thums Up.
Pepsi controls almost 60% market share in the Cola segment.

WEAKNESS:

SECOND MOVER DISADVANTAGE - Diet Pepsi Cola does have the first mover
advantage which Diet Coke has and this may prove to be a major shortcoming also in the
Agra Market no Extensive efforts have been made to popularize it.

Brand – On a comparative scale Diet Coke proves to have a better brand image in customers
mind than. This compels to incur extra expenditure in Advertising, Promotions and Sponsorship.

MCDONALDS – This is one of the most important reason why Diet Coke outsells Pepsi
worldwide and specially in the United States. Similarly, in India Diet Pepsi may suffers in sales
because of institutional sales. Now Pepsi is trying very to bridge this gap in the near future.

EXPENDITURE – Right from the very beginning Pepsi has hired the biggest and the
most expensive stars in the country as its brand ambassadors and has spend heavily on
advertising which has affected its balance sheet.

Vizicoolers – At presently this is one the biggest problems faced by Pepsi. Pepsi is not able to
get refrigerators in India so they have to import it other namely Sri Lanka, Mauritius etc.
Because of this, retailers are facing lot of problems in vigicoolers. They are not able to get new
refrigerators, replacements for old ones, even the repair work takes lots of time because at times
even the spares are not available on time.

OPPORTUNITIES:

Lowest Per Capita Consumption – Even after almost decades of presence in the market, there are
growth opportunities for Diet Pepsi in India as here the per capita consumption of carbonated
beverages is one of the lowest in the world.

Health Based: apart from its Juice Based drinks portfolio Pepsi can Use the Slim Diet can
to the maximum by promoting it as a health drink at Cheaper prices.

THREATS:

NGO’s – NGO’s like CSE can seriously hamper the sales and prospects of companies
operating in this industry. This happened during the pesticide controversy involving both
coke and Pepsi.
HEALTH – Growing health awareness among people and some of ill effects of

carbonated beverages have pursued many people to switch over to non-carbonated beverages that
can seriously hamper the long-term prospects of the entire Industry and not Pepsi.

ENVIRONMENT – Environmental concerns are often raised because of the massive

In India PepsiCo adopted the strategy of growth through intensification. In the intensification
strategy, it used market penetration by developing one of the strongest sales and distribution
network in the world and utilizing it to the fullest.

Pepsi did market development by making the aware of the best products available at their
disposal, by using the best technology to produce the products, by properly communicating with
the customer, and making the customer realize that he is important. Pepsi also explored new
markets by venturing new segments like fruit based beverages, sports drinks, snack food
division.

Pepsi expanded and established itself in the market place by constantly developing new products
to the customers, like Tropicana, Gatorade, and Pepsi Blue. In this way, Pepsi was also able to
effectively counter the threats posed by substitutes and new entrant