depleting goodwill and growing competition in the Indian market have more than anything to do with this act...

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But how could one explain that for the first time, 26 members of PepsiCo’s executive committee flew down to India? For sure, they consider themselves more than just harbingers of a healthy environment! And yes, depleting goodwill and growing competition in the Indian market have more than anything to do with this act... By creating a diversified portfolio (with a fine balance of both beverages and snacks), PepsiCo had already stolen the show from Coca-Cola. However, sustainability was questionable, especially after ITC has stuck its foot in the snacks market with its Bingo launch in 2007. As a result, Pepsi Foods’ Frito Lay has only stood a mere spectator to its market pie shrinking by 10%. Therefore, PepsiCo is also working at a feverish pace to revamp its portfolio. It is shifting focus from the sugary drinks and salty snacks and working more along the lines of the ‘healthy’ tag; ‘good for you’ product is what Nooyi calls it. At present, Pepsi’s portfolio ratio of ‘good for you’ to ‘fun for you’ products in the country is just 30:70. “But we would get it up to 50:50,” promises Nooyi.


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Source : IIPM Editorial, 2008
An Initiative of IIPM, Malay Chaudhuri and Arindam Chaudhuri (Renowned Management Guru and Economist).


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