PEPSICO

RURAL INDIA

1986, took advantage of Punjab problem, focused on agriculture and employment generation in rural
india = led to its entry

2003, hub and spoke' format of distribution. "The spoke is typically closest to the retail outlets and is
serviced by a hub distributor who is supplied directly from the plant or the company's warehouse. This
format allows for large loads travelling longer distances and short loads doing short distances which is
cost-effective." 2003- Pepsi have signed on thousands of new retailers in a drive into rural India that has
pushed up sales steeply.

In 2009, PepsiCo India achieved a significant milestone, by becoming the first business to achieve
‘Positive Water Balance’

September 2016, PepsiCo India says that it plans to bring more youth and women from rural areas to
work in the fast-moving consumer goods (FMCG) sector.

PepsiCo has been doing extremely well is transforming agriculture, and its best example is the 'Potato
Programme' wherein we have invested in technology, worked with 34,000 farmers, giving them higher-
yielding seeds and better remuneration. This has allowed the farmers make a significantly higher return
from PepsiCo than anybody else.

also launching an innovation called 'Bullet Cooler' that is made for India, particularly for retailers in rural
India where electricity is a big issue. The traditional way (in rural areas) has been using water-filled
earthen pots to cool beverages in absence of electricity. While a normal visi-cooler takes 20 hours to
cool, our simple innovation takes just four hours.

http://pepsicoindia.co.in/purpose/environmental-sustainability/partnership-with-farmers.html

MARCH 2018, aims to double sales of Tropicana, the flagship brand for its fruit-based beverages, by
2020 targeting rural india

From less than 100 towns, Tropicana will be made available across 300 towns.

INDIA

2013- introduced this year to a new cola innovation, Pepsi Atom, with a bolder, spicier taste

Expanding our Good-for-You portfolio, NourishCo, the joint venture between PepsiCo and Tata Global
Beverages, launched Tata Water Plus, India’s first nutrient water
2018- PepsiCo has, in January, entered into an agreement with its bottling partner Varun beverages Ltd
for distribution of Tropicana juice in North and East India.

CHALLENGES

1985- entry rejected

1989, trucks smashed by indian swadeshi activists

2013- title sponsorship of the Indian Premier League did not go too well, lost vital market share to arch-
rival Coca-Cola India.

2015- faced HR challenge

2017 - Changing consumer preferences and rising competition have led to a fall in market shares and
revenues that the US-based food and beverages maker has failed to arrest despite shifting focus to
healthier offerings

LOCAL COMPANY AS CHALLENGERS : Dabur, ITC, Parle Agro, Bisleri as well as

newcomers such as Global Consumer Products, Hector Beverages, Raw
Pressery

In March, two major trade bodies in Tamil Nadu - the Federation of Tamil Nadu Traders Associations
(FTNTA) and the Tamil Nadu Traders Associations Forum (TNTAF) - banned the sale of Coca-Cola and
Pepsi beverages across the state blaming the companies for extracting too much water from rivers that
has increased problems for farmers in the state