PepsiCo gained entry to India in 1988 by creating a joint venture with the Punjab government-owned Corporation (PAIC) and Voltas India Limited. This joint venture marketed and sold Lehar Pepsi until 1991 when the use of foreign brands was allowed; PepsiCo bought out its partners and ended the joint venture in 1994. PepsiCo’s’ Indian products are divided into 3 categories, namely ”The fun for you” products that includes soft drinks and snack foods. “The better for you” products that includes Diet Pepsi and “The good for you” products which consist of nutrition based products like the Tropicana fruit juice.

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PepsiCo however faces stiff competition in the market from similar products being offered by its major rival Coca Cola, as well as from some of the other local brands both in the carbonated soft drinks segment as well as in the bottled water segment. The company faces a situation in which it has seen a gradual erosion of its retail penetration in the various outlets in and around Bangalore recently. At present the company’s’ main objective is to increase its product penetration which is dwindling, by using a variety of tools that seem to attract retailers of such products.

Data has been obtained both from primary sources and secondary sources for the purpose of this project. Primary data has been obtained directly by surveying the various retailers of carbonated soft drinks in and around Bangalore, and secondary data has been obtained from the various internal documents of PepsiCo. However the only limitation of this report is that the findings of the report are based on the data available only from 01/01/2007 to 31/5/2008.

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