Free Measure for Measure Essays: Analysis of Acts V-VI :: Measure for Measure

Analysis of Acts V-VI of Measure for Measure One of the things that struck me as odd in Act V, Scene I is how Mariana seems to recognize the disguised Duke. I don't know if this means that the Duke has disguised himself as a friar in the past. Another thing that struck me odd in this scene is how soon Mariana agrees to the Duke's plan. Here is a stranger (Isabella) convincing a young woman (Mariana) to have sex under very mysterious circumstances with a man who has rejected her. The plan is very strange but Mariana agrees so quickly that its hard to see how it was possible for Isabella to give Mariana the full explanations of the reasons behind the ruse. The Duke tries to justify the whole scheme once again by saying that Angelo is Mariana's husband on a "pre-contract." In Act IV, Scene II I found it ironic that if Pompey becomes an executioner and stops being a bawd and prisoner he will better himself and become honorable. I also found it ironic that the Duke, Isabella, and Mariana are conspiring and deceiving Angelo but Angelo, in turn, deceives the three by stepping up the date of Claudio's execution. It is like practically everyone in the play is backstabbing someone else. It also seems like the Duke is concocting all these schemes to do "the right thing." First he has a plan to place Mariana in substitution of Isabella to sleep with Angelo and now he plans to have someone else beheaded to trick Angelo into thinking it's Claudio's head. It seems to me that the Duke is acting as immoral as the rest of the city and Angelo. He seems to go by the belief that the ends justify the means. Is he really better than Angelo? Upon first reading in Act IV, Scene III how the Duke lies to Isabella when he tells her that Claudio has been executed, I could not help but think how cruel the Duke is and how he may be taking his role of friar too far. I also thought that he would rather make others suffer unnecessarily just so he can be sure that his plan to "get" Angelo is successful. Act IV, Scene IV just reiterates the fact of how selfish Angelo is. While he does express regret for having executed Claudio he still justifies his decision by saying that had Claudio lived he may have sought revenge against Angelo.

Great Conversations :: essays papers

Great Conversations In Robert M. Hutchins essay, †Preface to The Great Conversation† he discusses how he believes Great Books are the finest creations. According to Hutchins, Great Books are the books written in the Western civilization. Robert Hutchins believes reading these books will help everyone morally, intellectually and spiritually. In the fifth paragraph Hutchins state, â€Å"the rising generation has been deprives of its birthright: adults have come to lead lives comparatively rich in material comforts and very poor in moral, intellectual, and spiritual tone.† Hutchins believes this because this generation isn’t reading the Great books, to such on the materialistic thing in life. I disagree with Hutchins. I don’t’ believe everyone should read Great books. I disagree, everyone opinion of a great book is different. I disagree with Hutchins belief, who is he to define Great books? I don’t think reading the books he describes in his essay will help our generation do better or worse. I think it’s up to our generation to define Great books. Our generation s is diverse. Everyone learning style and taste is different. However I do belief education is the key to our success, but the reading the books he describes in his essay will not do the trick. Our generation and society isn’t lacking because we aren’t reading these so-called Great books, it’s lacking for varies individual reasons. Knowledge is gained through several daily activities. Reading these Great books is essential. I would consider the works of Terry McMillan, Alex Walker and Maya Angelou to be Great books. These authors talk about issues that affect me, my peers, and my community in today’s society. Reading the books Hutchins described help them overcome trials in their day.

Touch of Evil: Abuse of Power and Corruption in the Police Force

James Temple Coms 356 Paper on Lighting I believe an important theme of Touch of Evil is the abuse of power and corruption in the police force. The film follows detectives as they try and find out who planted dynamite in a car which blew up. Detective Hank Quinlan shows up on the scene and has a feeling that the dynamite was planted by someone on the Mexican side. Detective Quinlan is a corrupt detective who does anything he can to drag evil doers to justice. His fellow officers awe him and his reputation to take justice into his own hands. Detective Quinlan can be both a good and evil guy. In the first example, Chiaroscuro lighting is used to darken Hank Quinlan’s face. This lighting shows how Quinlan is an evil individual who gets what he wants. This lighting is of low key since it is hard to see Quinlan’s face. To the right of Quinlan is one of the Mexican mob men and Susan with light shining on them coming from the right side of the screen. This light is of high key and high contrast. The light is shining on Susan as if this scene wants to show us how she is good and that she is just an innocent bystander. On the face of Hank is a stern look which gives him a sinister appearance that he’ll do anything to obtain justice. The Mexican mob guy is standing there with his hands up with light shining all over him as to say that he is a good guy and hasn’t done anything wrong but we know that this isn’t the case. In the second example, we have light shining on Hank Quinlan and Ramon Vargas. Here the lighting is of high key and high contrast. This is picture is when Quinlan tells Vargas that the dynamite has been in this box, but Vargas tells him that he just looked in the box and it wasn’t in there before. Vargas’ face is lit showing that he is of innocence and is a good guy. On the other hand Quinlan has his hat on which cast a little shadow over his eyes showing that he is evil. We can tell that Quinlan is up to something and that it was most likely him who put the dynamite stick in the box. Detective Quinlan has a lot of power and he uses it to the fullest. [pic] Example 1 [pic] Example 2

Bibliography

Carlos Maria de la Torre y Nava Cerrada  is considered the most beloved of the Spanish Governors-General ever assigned in the  Philippines  (1869–1871). He was the assigned  Governor-General  after the  La Gloriosa  revolution. ————————————————- [edit]Governor General of the Philippines A  Carlist  army officer, he was sent from  Spain  by  Francisco Serrano  after the ouster ofIsabel II  as result of the  La Gloriosa  revolution. He was considered a liberal Spaniard who practiced the liberal and democratic principles for imposing liberal  laws. 1]  He wanted to have the bronze statue of  Isabel II, first unveiled in 1860, melted so that it would be put to better use. However, the Manila City Council saved it by declaring the statue municipal property. [2] He established the  Guardia Civil  in the  Philippines  and gave a mnesty to rebels,[3]  of which the most prominent was Casimiro Camerino (El tulisan), the leader of bandits in Cavite. [4]He organized the bandits given amnesty into an auxiliary force of the  Guardia Civil. He abolished flogging, relaxed media censorship, and began limited secularization of education. 2]  He was also very close to the  ilustrados, a group of Filipinos who understood the situation of the Philippines under Spanish rule. His supporters had done a Liberal Parade in front of the  Malacanan Palace. [5] Only two weeks after the arrival of de la Torre as Governor-General, Burgos and Joaquin Pardo de Tavera led a demonstration at the Plaza de Santa Potenciana. Among the demonstrators were Jose Icaza, Jacobo Zobel, Ignacio Rocha, Manuel Genato and Maximo Paterno. The demo cry was â€Å"Viva Filipinas para los Filipinos! â€Å".In November 1870, a student movement, denounced as a riot or  motin, at the  University of Santo Tomasformed a committee to demand ref orms on the school and its curricula. It later announced support of Philippine autonomy and recognition of the Philippines as a province of Spain. The committee was headed by Felipe Buencamino. [6] Carlos was single and he had a mistress who had great influence on him. His mistress, Maria del Rosario Gil de Montes de Sanchiz, flared up friar opposition because of many reasons. One of the reasons was she authored a book entitled  El Hombre de Dios.It was criticized because a woman wrote it. [2] Another is during a festivity in  Malacanan Palace  that was mainly attended by Philippine creoles, who are now definitely called Filipinos. She arrived at the place wearing a ribbon which said  Viva la Libertad  (English: Long live libertty) and  Viva el Pueblo Soberano  (English: Long live the sovereign nation). [2] In March 1871, he wrote to Madrid concerning his decision to get relieved from his post. However, his patron in Spain was assassinated the previous month and orders for his relief was given nine days before his letter was written. 4]  He was succeeded by  Governor-GeneralRafael de Izquierdo. ————————————————- ————————————————- ————————————————- ————————————————- ————————————————- ————————————————- ——————————â₠¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€- ————————————————- ————————————————- ————————————————- Maximo S.Viola Maximo Sison Viola  (1857-1933) was a physician, municipal councilor, and a supporter of the Propaganda Movement. Maximo Viola was known as the man who saved for posterity and financed the printing of  Jose Rizal's novel  Noli Me Tangere. Early life Maximo Viola was born on October 17, 1857 in Barrio Sta. Rita, San Miguel, Bulacan. He was the only child of Isabel Sison from Malabon, Rizal and Pedro Viola from San Rafael, Bulacan. Viola had his early education in San Miguel, Bulacan and completed a degree in Colegio de San Juan de Letr an in Intramuros, Manila.He took his pre-medical studies at the University of Santo Tomas. In 1882, he sailed to Spain and studied Medicine at the University of Barcelona, where he met other Filipino students, notably Jose Rizal, with whom he developed a close friendship. In 1886, Viola obtained his doctoral degree in medicine from the University of Barcelona. Viola was also supportive of other propagandists such as  Marcelo H. del Pilar, whom he aided financially. He returned to Philippines in 1887 and lived a full life until he died on September 3, 1933. ————————————————- edit]  Fellowship with Dr. Jose Rizal March 1887, Viola played an important role in the life of Jose Rizal, he financed the publication of Rizal's first novel Noli Me Tangere, which original manuscript had already planned to be destroy by Rizal because of financial inability to pay its publication. Thus, the first 2,000 copies of the novel were printed. In deep gratitude, Rizal gave him the last galley proofs and the first published copy, â€Å"To my friend, Maximo Viola, the first to read and appreciate my work-Jose Rizal, March 29, 1887, Berlin. † – Rizal wrote.On the same year, Viola and Rizal toured Germany, Austria, Hungary, and Switzerland where he personally met Ferdinand Blumentritt, one of Rizal’s foreigner friend and supporter. 1887, Dr. Viola returned to the Philippines and began his medical practice. In 1890, he married a native from San Miguel named Juana Roura, by whom he had five sons. However, two of them died in infancy. June 1892, he had a reunion with Rizal in Manila and learned about his friend’s fate, with his association with Rizal he was included to the watch list by the Spanish authorities and the Spanish Guardia Civil subjected his home in Bulacan had to a thorough inspection.In the peak of 1896 revolution, Viola went underg round to escape the harassment of the Spanish authorities. He was also a Manila military prison and later in Olongapo during his imprisonment, he assist Dr. Fresnell, an American doctor who was unfamiliar with tropical diseases. Fresnell later helped him secure his freedom. He was the president of Liga de Propietarios, who aided the owners of rice lands in San Miguel, Bulacan in opposing politicians who were courting the tenant’s votes at the expense of the landlords.When Manila Railroad line was being extended to Cabanatuan, Nueva Ecija, Viola once again rallied the concerned landowners in preventing the prestigious British Company from taking over their land without appropriate reparations. Dr. Maximo Viola treated his impecunious patients for free and often resorted to simple remedies so that they would not have to spend, he would disinfect common snakebites by using matchsticks instead of prescribing expensive solutions. One of his hobby is designing and building furnitur e, in the 1920’s he proved his competence by winning awards for his furniture pieces displayed in several shows in Manila.In the later years, Viola wrote memoirs of his friendship with Rizal, it came out in three parts in the Spanish newspaper El Ideal, in June to 20, 1913. The English version was done by A. R. Roces, one of the eminent writers and it was published in the Manila Times on the December 30 and 31, 1950 and January 1, 1951 issues. On September 3, 1933, Dr. Viola, aged 76 died in Barrio San Jose in his hometown. Later, another house was constructed on the same lot where an heir of Pedro Viola lived. In 1962, a marker in honor of Dr.Viola was installed in San Miguel, Bulacan Pedro Serrano Lawtaw  (1853-1928) was a 19th-century reformist, Mason, and renowned lexicographer and educator. He is also known as the only Filipino tutor in the service of a Spanish king. ———————————— Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€- [edit]  Early Life Pedro Serrano Laktaw was born on 24 October 1853 in  Kupang, Bulacan. His father was the lexicographer  Rosalio Serrana, and his mother was Juana Laktaw, who from early on fostered a love of language and literature on their sixth child.Pedro Serrano Laktaw obtained his degree of â€Å"maestro elemental† at the  Escuela Normal Superior de Maestros  in Manila and began his teaching career in 1877 in  San Luis, Pampanga. It was in Pampanga that he studied the local literature and folk traditions. His study entitled â€Å"Folklore Pampango† was included by  Isabelo de los Reyes  in the landmark book â€Å"El Folk-lore Filipino† and exhibited at the  Exposicion Filipinaheld in Madrid in 1887. ————————————————- [edit]  Involvement in the Propaganda MovementMoving back to his home provice of  Bulacan, he became a director of a  Malolos  school. It was at this time that he joined activiely in civic causes. Together with  Marcelo H. Del Pilar, Mariano Crisostomo, Jose Gatmaitan,  Mariano Ponce, he formed a benevolent association calledCaja de Jesus, Maria y Jose  to give scholarships to indigent children. Together with  Ambrosio R. Bautista,  Deodato Arellano,  Marcelo H. del Pilar  and  Doroteo Cortes, he helped form a  Comite de Propaganda  to extol democratic principles and expose friar abuses. Pedro Serrano Laktaw also co-authored with  Rafael Enriquez  and  Marcelo H. el Pilar  other satirical works, such as  Dasalan at Toksohan, andPasion dapat ipag-alab ng Puso ng taong babasa. This group continued to finance the publication of  La Solidaridad, even when  Marcelo H. del Pilar  left Manila for Barcelona to escape arrest. In 1887 he was awarded a government scholarship to study at the Escuela Normal of Salamanca, Spain. He took up postgraduate studies at the Escuela Normal in Madrid. He achieved renown as a teacher and was hired as a private tutor to the Prince of Asturias, who later became King  Alfonso XIII.He was acclaimed as the only Filipino tutor in the service of a Spanish king. In 1889 he compiled the first modern lexicography of the Tagalog language  Diccionario Hispano-Tagalog  to much notice. He issued the follow-up volume â€Å"Diccionario Tagalog-Hispano† in 1914. ————————————————- [edit]  Masonic Activities He was attracted by the ideals of fraternity and enlightenment and he was recruited into  Freemasonry, joining on 1 April 1889 the LodgeRevolucion  in Barcelona, Spain with  Graciano Lopez Jaena,  Jose Rizal,  Mariano Ponce,  Marcelo H.Del Pilar,  Jose Alejandrino,  Antonio Lunaand  Juan Luna. This lodge was later renamed to  Solidaridad No. 5. The Masonic grandmaster  Miguel Morayta  of the Spanish  Gran Oriente Espanol  designated Pedro Serrano Laktaw and  Antonio Luna  to establish  Freemasonry  in the Philippines. Returning to Manila in 1890 he helped found other Masonic lodges throughout the country. Working with an early Masonic recruit  Moises Salvador  and  Jose A. Ramos, who was based in London, he established the first all-Filipino lodge called  Nilad, which became the motherhouse of all lodges.It was officially recognized by the  Gran Oriente Espanol  the following year, with  Jose A. Ramos  designated as head and Serrano as its first secretary. His Masonic name was  Panday Pira, a legendary cannon maker of the 16th century. In Manila he was arrested for his masonic proselytizing and later released by Governor-General  Ramon Blanco y Erenas. For having renounced the Masonic movement, he was expelled from the organization on 16 April 1893. Thereafter he wrote for  Espana Ori ental  and  Revista Catolica de Filipinas.In the second half of the  Philippine Revolution  he resumed his propagandistic career, writing articles for  El Heraldo de la Revolucion. He continued writing nationalistic articles under the American regime, for other organs such as  Ang Bayan,  Ang Kapatid ng Bayanand  Kalayaan. He cemented his reputation as a lexicographer and grammarian when he pulished  Diccionario Tagalog-Hispano  in 1914. Together with his earlier volume  Diccionario Hispano-Tagalog, the two books were described as the only lexicographical studies of scientific value by an American linguist Leonard Bloomfield.His  Estudios Gramaticales Sobre la Lenga Tagalog  was published posthumously published in 1929 and today he is remembered as one of the spelling reformers of the Tagalog language, along with  Jose Rizal  and  Trinidad Pardo de Tavera. Pedro Serrano Laktaw married Roberta Buison in 1887 by whom had 13 children, including Rosalio, Jr. , Pedro, Isidro, Jose, Manuel, Consuelo, Balbino, Hermenegildo, Pedring, Teresa, Patricio. He died on 22 September 1928 and was buried in  Mandaluyong, Rizal. Bibliography Carlos Maria de la Torre y Nava Cerrada  is considered the most beloved of the Spanish Governors-General ever assigned in the  Philippines  (1869–1871). He was the assigned  Governor-General  after the  La Gloriosa  revolution. ————————————————- [edit]Governor General of the Philippines A  Carlist  army officer, he was sent from  Spain  by  Francisco Serrano  after the ouster ofIsabel II  as result of the  La Gloriosa  revolution. He was considered a liberal Spaniard who practiced the liberal and democratic principles for imposing liberal  laws. 1]  He wanted to have the bronze statue of  Isabel II, first unveiled in 1860, melted so that it would be put to better use. However, the Manila City Council saved it by declaring the statue municipal property. [2] He established the  Guardia Civil  in the  Philippines  and gave a mnesty to rebels,[3]  of which the most prominent was Casimiro Camerino (El tulisan), the leader of bandits in Cavite. [4]He organized the bandits given amnesty into an auxiliary force of the  Guardia Civil. He abolished flogging, relaxed media censorship, and began limited secularization of education. 2]  He was also very close to the  ilustrados, a group of Filipinos who understood the situation of the Philippines under Spanish rule. His supporters had done a Liberal Parade in front of the  Malacanan Palace. [5] Only two weeks after the arrival of de la Torre as Governor-General, Burgos and Joaquin Pardo de Tavera led a demonstration at the Plaza de Santa Potenciana. Among the demonstrators were Jose Icaza, Jacobo Zobel, Ignacio Rocha, Manuel Genato and Maximo Paterno. The demo cry was â€Å"Viva Filipinas para los Filipinos! â€Å".In November 1870, a student movement, denounced as a riot or  motin, at the  University of Santo Tomasformed a committee to demand ref orms on the school and its curricula. It later announced support of Philippine autonomy and recognition of the Philippines as a province of Spain. The committee was headed by Felipe Buencamino. [6] Carlos was single and he had a mistress who had great influence on him. His mistress, Maria del Rosario Gil de Montes de Sanchiz, flared up friar opposition because of many reasons. One of the reasons was she authored a book entitled  El Hombre de Dios.It was criticized because a woman wrote it. [2] Another is during a festivity in  Malacanan Palace  that was mainly attended by Philippine creoles, who are now definitely called Filipinos. She arrived at the place wearing a ribbon which said  Viva la Libertad  (English: Long live libertty) and  Viva el Pueblo Soberano  (English: Long live the sovereign nation). [2] In March 1871, he wrote to Madrid concerning his decision to get relieved from his post. However, his patron in Spain was assassinated the previous month and orders for his relief was given nine days before his letter was written. 4]  He was succeeded by  Governor-GeneralRafael de Izquierdo. ————————————————- ————————————————- ————————————————- ————————————————- ————————————————- ————————————————- ——————————â₠¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€- ————————————————- ————————————————- ————————————————- Maximo S.Viola Maximo Sison Viola  (1857-1933) was a physician, municipal councilor, and a supporter of the Propaganda Movement. Maximo Viola was known as the man who saved for posterity and financed the printing of  Jose Rizal's novel  Noli Me Tangere. Early life Maximo Viola was born on October 17, 1857 in Barrio Sta. Rita, San Miguel, Bulacan. He was the only child of Isabel Sison from Malabon, Rizal and Pedro Viola from San Rafael, Bulacan. Viola had his early education in San Miguel, Bulacan and completed a degree in Colegio de San Juan de Letr an in Intramuros, Manila.He took his pre-medical studies at the University of Santo Tomas. In 1882, he sailed to Spain and studied Medicine at the University of Barcelona, where he met other Filipino students, notably Jose Rizal, with whom he developed a close friendship. In 1886, Viola obtained his doctoral degree in medicine from the University of Barcelona. Viola was also supportive of other propagandists such as  Marcelo H. del Pilar, whom he aided financially. He returned to Philippines in 1887 and lived a full life until he died on September 3, 1933. ————————————————- edit]  Fellowship with Dr. Jose Rizal March 1887, Viola played an important role in the life of Jose Rizal, he financed the publication of Rizal's first novel Noli Me Tangere, which original manuscript had already planned to be destroy by Rizal because of financial inability to pay its publication. Thus, the first 2,000 copies of the novel were printed. In deep gratitude, Rizal gave him the last galley proofs and the first published copy, â€Å"To my friend, Maximo Viola, the first to read and appreciate my work-Jose Rizal, March 29, 1887, Berlin. † – Rizal wrote.On the same year, Viola and Rizal toured Germany, Austria, Hungary, and Switzerland where he personally met Ferdinand Blumentritt, one of Rizal’s foreigner friend and supporter. 1887, Dr. Viola returned to the Philippines and began his medical practice. In 1890, he married a native from San Miguel named Juana Roura, by whom he had five sons. However, two of them died in infancy. June 1892, he had a reunion with Rizal in Manila and learned about his friend’s fate, with his association with Rizal he was included to the watch list by the Spanish authorities and the Spanish Guardia Civil subjected his home in Bulacan had to a thorough inspection.In the peak of 1896 revolution, Viola went underg round to escape the harassment of the Spanish authorities. He was also a Manila military prison and later in Olongapo during his imprisonment, he assist Dr. Fresnell, an American doctor who was unfamiliar with tropical diseases. Fresnell later helped him secure his freedom. He was the president of Liga de Propietarios, who aided the owners of rice lands in San Miguel, Bulacan in opposing politicians who were courting the tenant’s votes at the expense of the landlords.When Manila Railroad line was being extended to Cabanatuan, Nueva Ecija, Viola once again rallied the concerned landowners in preventing the prestigious British Company from taking over their land without appropriate reparations. Dr. Maximo Viola treated his impecunious patients for free and often resorted to simple remedies so that they would not have to spend, he would disinfect common snakebites by using matchsticks instead of prescribing expensive solutions. One of his hobby is designing and building furnitur e, in the 1920’s he proved his competence by winning awards for his furniture pieces displayed in several shows in Manila.In the later years, Viola wrote memoirs of his friendship with Rizal, it came out in three parts in the Spanish newspaper El Ideal, in June to 20, 1913. The English version was done by A. R. Roces, one of the eminent writers and it was published in the Manila Times on the December 30 and 31, 1950 and January 1, 1951 issues. On September 3, 1933, Dr. Viola, aged 76 died in Barrio San Jose in his hometown. Later, another house was constructed on the same lot where an heir of Pedro Viola lived. In 1962, a marker in honor of Dr.Viola was installed in San Miguel, Bulacan Pedro Serrano Lawtaw  (1853-1928) was a 19th-century reformist, Mason, and renowned lexicographer and educator. He is also known as the only Filipino tutor in the service of a Spanish king. ———————————— Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€- [edit]  Early Life Pedro Serrano Laktaw was born on 24 October 1853 in  Kupang, Bulacan. His father was the lexicographer  Rosalio Serrana, and his mother was Juana Laktaw, who from early on fostered a love of language and literature on their sixth child.Pedro Serrano Laktaw obtained his degree of â€Å"maestro elemental† at the  Escuela Normal Superior de Maestros  in Manila and began his teaching career in 1877 in  San Luis, Pampanga. It was in Pampanga that he studied the local literature and folk traditions. His study entitled â€Å"Folklore Pampango† was included by  Isabelo de los Reyes  in the landmark book â€Å"El Folk-lore Filipino† and exhibited at the  Exposicion Filipinaheld in Madrid in 1887. ————————————————- [edit]  Involvement in the Propaganda MovementMoving back to his home provice of  Bulacan, he became a director of a  Malolos  school. It was at this time that he joined activiely in civic causes. Together with  Marcelo H. Del Pilar, Mariano Crisostomo, Jose Gatmaitan,  Mariano Ponce, he formed a benevolent association calledCaja de Jesus, Maria y Jose  to give scholarships to indigent children. Together with  Ambrosio R. Bautista,  Deodato Arellano,  Marcelo H. del Pilar  and  Doroteo Cortes, he helped form a  Comite de Propaganda  to extol democratic principles and expose friar abuses. Pedro Serrano Laktaw also co-authored with  Rafael Enriquez  and  Marcelo H. el Pilar  other satirical works, such as  Dasalan at Toksohan, andPasion dapat ipag-alab ng Puso ng taong babasa. This group continued to finance the publication of  La Solidaridad, even when  Marcelo H. del Pilar  left Manila for Barcelona to escape arrest. In 1887 he was awarded a government scholarship to study at the Escuela Normal of Salamanca, Spain. He took up postgraduate studies at the Escuela Normal in Madrid. He achieved renown as a teacher and was hired as a private tutor to the Prince of Asturias, who later became King  Alfonso XIII.He was acclaimed as the only Filipino tutor in the service of a Spanish king. In 1889 he compiled the first modern lexicography of the Tagalog language  Diccionario Hispano-Tagalog  to much notice. He issued the follow-up volume â€Å"Diccionario Tagalog-Hispano† in 1914. ————————————————- [edit]  Masonic Activities He was attracted by the ideals of fraternity and enlightenment and he was recruited into  Freemasonry, joining on 1 April 1889 the LodgeRevolucion  in Barcelona, Spain with  Graciano Lopez Jaena,  Jose Rizal,  Mariano Ponce,  Marcelo H.Del Pilar,  Jose Alejandrino,  Antonio Lunaand  Juan Luna. This lodge was later renamed to  Solidaridad No. 5. The Masonic grandmaster  Miguel Morayta  of the Spanish  Gran Oriente Espanol  designated Pedro Serrano Laktaw and  Antonio Luna  to establish  Freemasonry  in the Philippines. Returning to Manila in 1890 he helped found other Masonic lodges throughout the country. Working with an early Masonic recruit  Moises Salvador  and  Jose A. Ramos, who was based in London, he established the first all-Filipino lodge called  Nilad, which became the motherhouse of all lodges.It was officially recognized by the  Gran Oriente Espanol  the following year, with  Jose A. Ramos  designated as head and Serrano as its first secretary. His Masonic name was  Panday Pira, a legendary cannon maker of the 16th century. In Manila he was arrested for his masonic proselytizing and later released by Governor-General  Ramon Blanco y Erenas. For having renounced the Masonic movement, he was expelled from the organization on 16 April 1893. Thereafter he wrote for  Espana Ori ental  and  Revista Catolica de Filipinas.In the second half of the  Philippine Revolution  he resumed his propagandistic career, writing articles for  El Heraldo de la Revolucion. He continued writing nationalistic articles under the American regime, for other organs such as  Ang Bayan,  Ang Kapatid ng Bayanand  Kalayaan. He cemented his reputation as a lexicographer and grammarian when he pulished  Diccionario Tagalog-Hispano  in 1914. Together with his earlier volume  Diccionario Hispano-Tagalog, the two books were described as the only lexicographical studies of scientific value by an American linguist Leonard Bloomfield.His  Estudios Gramaticales Sobre la Lenga Tagalog  was published posthumously published in 1929 and today he is remembered as one of the spelling reformers of the Tagalog language, along with  Jose Rizal  and  Trinidad Pardo de Tavera. Pedro Serrano Laktaw married Roberta Buison in 1887 by whom had 13 children, including Rosalio, Jr. , Pedro, Isidro, Jose, Manuel, Consuelo, Balbino, Hermenegildo, Pedring, Teresa, Patricio. He died on 22 September 1928 and was buried in  Mandaluyong, Rizal.

Marketing Strategies of Mcdonalds in India

EXECUTIVE SUMMARY Marketing is a procedure of attracting prospective customers and consumers in your products and services. However the crucial word in the above sentence is â€Å"procedure â€Å", hence marketing incorporates researching, advertising, selling, and distributing your products or services. Hence we planned to focus on one of the best known brands worldwide, McDonald’s Corporation. The following executive summary presents the key marketing aspects of McDonald’s Corporation and should be read as a complement to the contents of this report. Summarized content Page No. †¢ Key facts about the firm. External environment forces and consumer behaviour. †¢ The concept of Marketing mix and its various aspects. †¢ Decision making process and brand image. 2 2 3 †¢ The Product Life cycle and what steps the company is taking to revitalise its existing products. †¢ The different communication strategies used by the company in advertising its p roducts and the varying styles of television advertising carried out since McDonald’s launch in India. †¢ The distribution and the supply chain network of the firm in India. †¢ The SWOT analysis of the firm along with inference and some recommendations. 8 9 10 1. 0 INTRODUCTION Marketing is understood by majority of business groups as simply to mean simply to promote, sell and advertise. But this is not entirely true as marketing incorporates all techniques from human behaviour and cultures through research, new product launch, product life cycle, advertising, public relations and finally the sales function. The Chartered Institute of Marketing (CIM) describes marketing as ‘the management method accountable for discovering, anticipating, and satisfying consumer requirement valuably. ’ Hence the most significant concept of marketing lies in knowing and understanding your customer. This report aims at investigating how McDonald’s Corporation, a global restaurant has achieved this enormous success in international growth and challenges due to its marketing strategies. 2. 0 BACKGROUND AND DISCUSSION Out of the enormous market of fast food industry, McDonald's Corporation is the globe's fastest growing firm, with more than 20,000 restaurants in 100 countries (Vignali, 2001). In the UK, McDonald's operates a staggering 900 restaurants (www. bc. co. uk ). Initially it was started as a hot dog stand by Dick and Mac McDonald at California, USA in 1937. The business began in 1955 when Ray Kroc and the McDonald’s brothers opened a restaurant to the north of Chicago. From then on, McDonald's grew rapidly and today is known as an international brand. However, the cuisine menu has been changed to meet the demand and lifestyles of the customers. India has been a di fficult market for any overseas firm to do business considering its diversity and cultural differences. However McDonald’s established its first Indian outlet in Vasant Vihar, New Delhi in October 1996. McDonald's India has a 50-50 joint venture involving McDonald's Corporation, US and 2 Indian business men, Amit Jatia’s (Hard castle Restaurants Private Limited) and Vikram Bakshi (Connaught Plaza Restaurants Private Limited). About major percent of the menu available in McDonald’s in India is Indianized and exclusively designed to attract Indian consumers (Dash, 2005). But the success have not come at ease, the firm had to meet a lot of obstacles and problems in attaining its high standards. . 0 EXTERNAL MARKETING ENVIRONMENTAL FORCES McDonald’s faces many external marketing environmental forces, which the firm has to familiarize with and deal accordingly. With respect to environment forces, the firm has to adapt highly fragmented foodstuff marketplace and developing transportation. Considering the fact that India’s food expenditure is on the rise, Mc Donald’s also has to compete with the millions of road side stalls, dhabas (Regional Food Stalls) and carts which offer popular foodstuffs across India (Dash, 2005). Hence the company has come up with a variety of reasonable products at reasonable prices. In view of the cultural force, the firm has to conquer the major regional languages and the educational barrier among the people. Hence McDonald’s adapts to the local language and uses signs as a strong display of firm’s assurance to the localities (Chauhan, 2008). On the political front, the firm also has to check on the government intervention and pressure from various regional environmentalists and health camps (check http://www. hinduonnet. com ). Even on the economical front, some pressure exists as swadeshi (regional) mindset exists. The company also has to focus on the diverse distribution of income across the country. According to Mr Jatia, M. D, South and West Region, India, Indian people are increasing their visits to McDonald's as it has become more than an occasion meal especially to the middle class. (http://online. wsj. com ). Hence looking at the success, the fact can be drawn that both local management directors (Mr. Bakshi and Mr. Jatia) have played important roles in shaping McDonald’s to the prospects of the Indian market. . 0 MARKETING MIX The concept of Marketing Mix consisting of the 4P’ was formulated by McCarthy in 1975. This was used as principal foundation for many years. In the year 1996 Fifield and Gilligan added 3P’s (People, Process and Physical) to the existing 4P’s of Marketing Mix. These 3P’s are an integral part of services marketing. The 7P’s used to anal yse the Marketing Mix of McDonalds in India are: 1) Product (Features, Quality, Quantity): McDonalds aims to create standardized set of items, that taste same everywhere. But along with this it concentrates on localization by adapting to local tastes, customs, customer preferences etc. For example, McDonalds changed the ingredients of its ‘French Fries’ after it protested that it was made out of the oil from beef. This was done as Cow is considered sacred among Hindus in India. McDonalds has a variety of products specially made for the Indian market. Some of them are Vegetable McNuggets, Mutton based Maharaja Mac (as Hindus do not eat beef and Muslims do not eat pork). Apart from all these its menu includes beverages, frozen desserts and breakfasts combos. ) Place (Location, Number of Outlets): McDonalds follows concept of standardization in component of place also. The ambience and outlook all restaurants are the same. The reasons why most of its outlets in India are in Malls, shopping complexes, famous street markets is its locating strategies. It has over 130 outlets in 34 cities all over India. 3) Price (Strategy, Determinants, Levels ): In India McDonalds has set prices on the basis of the prices of its nearest organized competitors. For example, initially it set price in New Delhi on the basis of the price of Nirula’s, its biggest competitor in that area. Vignali, 2001) This way it attracted the customers, as they were getting an international brand at the price of a local brand. The pricing strategy of McDonalds with respect to competition is explained in the later stages of the report. 4) Promotion (Advertising, Sales Promotion, Public Relation): â€Å"Brand globally, advertise locally† is McDonald’s promotion strategy. (Vignali, 2001; Sander & Shani, 1991). For years it has maintained extensive promotion strategy. It focuses on children, overall eating experience and portrays itself as a ‘Family Restaurant’. Its global tag line is â€Å"I’m Lovin’ It†. Tag line to attract Indian customers is â€Å"Aap Ke Zamaane Mein Baap Ke Zamaane Ke Daam†, which means buy at a price, which your father used to buy in his days† 5) People (Quantity, Quality, Training, and Promotion): â€Å"The Company is strongly committed to staffing locally and promoting from within. This means that McDonald’s has managers who understand both the corporate and the local cultures† (Vignali, 2001). Particularly in India it is important to have local people, as language differs from state to state and staff from some other state might not be able to understand the local people’s language. ) Process (Blueprinting, Automation, Control Procedures): In McDonalds the procedure for making food is identical everywhere. For example, one out of two fries must measure 75mm, meat for Big Mac’s weighs 45g and is 20 per cent fat. (Vignali, 2001). The following is the process in McDonalds: 7) Physical (Cleanliness, Decor, and Ambience of t he Service): This is one of the most important components of the Marketing Mix. If the place where the food is served is not clean and hygienic then there will be no result from the components. Keeping this in mind, McDonalds aims at cleanliness, speed, quality and transparency of process. Strict standards of cleanliness are maintained at all times. 5. 0 CONSUMER BEHAVIOUR In terms of consumer behaviour, McDonald’s associates its products with routine response behaviour and in some cases limited decision making for some classes. For example, enjoying a happy meal for some people may just be a case of hunger while some for some eating at McDonald's may be luxury and hence they may only turn up on occasions. Majority of the decision starts with experimental buying. Personal factors which affect the firm in relation to the consumer are demographic factors like age, gender and race. However the firm can also produce some situational factors like offering free sport coupons and offering 2 meals at one price (Deng, 2009). McDonald's also enhances the individual level of involvement by offering healthy meal packages for adults and toys for children. Bearing in mind the social factors, the firm has understood various cultures and classes across India. As different people have different local tastes, the firm produces products with a mix of regional taste (Dash, 2005). In terms of opinion leaders, celebrities are being increasingly used in marketing communication by marketers to lend personality to their products. 5. 1 UNDERSTANDING THE INDIAN CONSUMER Understanding an Indian consumer was extremely important for overcoming the challenges of expansion in India. Some facts of Indian consumer are that they have a high degree of family orientation. In solution to this? In India, McDonald’s has placed itself as a family restaurant. The foundation of its approach is to attract families and friends (Dash, 2005). Secondly Indian consumer is influenced by discounts and freebies. Hence the firm has constantly distributed free schemes on its products with its pricing strategies. Notable fact is that Indian consumers choose expensive products as they feel that price is an indicator of quality and they are likely to buy environmentally responsible products and packs as the environmental awareness has started affecting India. In response to this McDonald's attracts the consumers with good quality products and its ethical and ecological responsible products and packaging help in clean environment. . 2 DECISION MAKING PROCESS After investigating the behaviour of Indian Consumer, McDonald’s has produced an effective decision making process which involves five stages. The firm initially tries to recognize the desired need of the customer with its research on regional consumers. Secondly McDonald’s provides information of the products through internet, reports, media and campaigns which he lps the buyer to differentiate and understand the product better. Information related to pricing, offers and health are provided to the consumer. Thirdly McDonald’s provides a range of alternative products and its benefits to different consumers and helps them to evaluate accordingly. In the fourth stage the company uses its price strategy and benefits; the company aims to attract customers and their decisions to purchase their products. And finally, through quality and service, McDonald’s tries to improve its service with customers providing Post-purchase evaluation. 6. 0 BRANDING In terms of brand experience, McDonald’s is not just a product but a fast, clean and easy way for families to enjoy together. In view of the firm’s branding, McDonald's emphasizes on Customer driven and goal oriented techniques. According to Arvind Singhal, Head of Marketing at McDonald's India, McDonald's chooses to familiarize the customer with the brand in terms of a marketing communications. Since the brand image symbolizes how customers view the organisation, the company launched a clown named Ronald. Sitting on the Ronald McDonald bench and pumping sauce from the sauce machine became brand rituals for children. Hence the company ensured that it as to be aware of fundamental needs by identifying, predicting and serving their consumers rather than just selling the product (http://www. businessweek. com ). Hence the firm concentrates not only on delivering products for the instant demand but also defending the long term brand status. Family values being important in India, McDonald’s promotion assured that it’s is not just a fast-food joint but a quick, healthy and easy way for famil ies to relish together. Thus McDonald's focuses not only on delivering sales for the immediate present but also protecting the long term brand reputation. . 0 COMPETITION AND RECESSION In terms of pricing strategies, which is a part of marketing, McDonald’s faces tough competition on several fronts. Traditional rivals such as Pizza Hut, KFC and most importantly the local dhabas and road side stalls are eating reasonable margins of McDonald’s sales. Considering the prices, a happy meal in Pizza Hut which consists of 2 pizzas would approximately cost ? 4. 5 (Rs 350) and similarly a burger and drink at a KFC outlet would cost around ? 1. 5 (Rs 120). But with its consumer value strategies, McDonald’s offers a happy meal at only (Rs 90) ? 1. 12 (www. businessworld. in ) Recession may affect organisations to change their marketing policies because as recession occurs, the consumer spends less money on the product or switches to alternatives of low cost. But recession seems to be an advantage for McDonald’s as Consumers will cut back on high-end dining, and McDonald's is the beneficiary as they provide food at reasonable prices. (www. europe. wsj. com ). The company also introduces new offers accordingly to the situation. McDonald's has benefiting from its worldwide existence during the present recession, by the launch of new products like McAloo Tikki (prepared with potato and vegetables) and the Maharaja Mac in India (http://money. cnn. com/2009 ). According to Vikram Bakshi, M. D of McDonald's operations in India, McDonald's will be doubling-up its returns in three years, and tripling our restaurants in the next five years. Currently the fast-food chain has 123 outlets in India (http://in. reuters. com ). 8. 0 PRODUCT LIFE CYCLE Underpinning the product life cycle concept is the belief that products move through a sequential, predetermined pattern of development similar to the biological path that life forms follow. This pathway is known as the Product Life Cycle (PLC)† (Baines et al. , 2008). According to Kotler & Keller (2009), a company’s positioning and differentiation strategy must change as the product, market and the competitors change over its PLC. [pic] Figure 1 As it can be s een from the above figure a product basically has five stages, with four of them directly related to the consumers who in many terms dictate different aspects or the whole of product. Thus all products have a limited life for the consumer as well as the product. Since McDonald’s is a company that deals in food items, its products will have a definitive period within which they have to get acquainted to the customers tastes, grow in value and earn profits for the company. Also since the McDonald’s products are perishable they have a short life cycle (see www. bbc. co. uk). Thus regular innovation of the food items is required by McDonald’s. For instance, McDonald’s French Fries have been an important part of the company’s menu worldwide. But in India, at one stage their sales were on decline. To counter this problem the management tried to implement certain steps. They introduced the fries with a mix of certain Indian spices. The product came to be known as Shake Shake Fries. This was well received by the consumers and it once again revitalised the sales of the fries. Thus without cannibalising the existing product a new product was created by the firm to delay the decline of a well established product which had the potential to generate income (Ghosh et al. , 2009). 9. 0 MARKETING COMMUNICATIONS The managerial system that ensures timely and comprehensive input to the corporate information and the decision making process and consequence production and expression of credible, persuasive representations of beneficial exchange opportunities with actual and prospective customers and other stake holders. (Varey, 2002). On a more a simple terms it is the method of communicating the right message, through the right medium, to the correct audience (see www. thetimes. biz). If a firm fails to comprehend these steps, it may result in its product failure. The communication methods adopted by McDonald’s in India are as follows, Newspapers, Journals and other forms of Print Media †¢ Television advertisements †¢ Point of Sale Display †¢ Merchandising †¢ Direct Mail †¢ Door drops †¢ Demonstrations †¢ Tele-Marketing(see www. thetimes. biz) Thus effective communication is, when the company develops a campaign which makes use of the above methods to ge t the desired results. Considering only the Television Advertisements of McDonald’s in India, these were not on the company’s radar until the turn of the century (see www. thetimes. biz). This was despite its entry into the Indian market in the latter part of 1996. This step was undertaken by the company so that it could concentrate more on the development of its stores, improve the quality of its products and tailor its global menu to suit the Indian tastes. It was only after 2000 that the first advert of the firm was telecast. â€Å"The first advert of the firm featured a child who suffers stage fright and is unable to recite a poem. On entering McDonald's, he easily recites it in the store's familiar environment. † This advert of the company basically focussed on McDonald’s being a comfortable and a familiar place (Chaturvedi, 2008). The next ad was based on a family moving to a new place. The kid in the family feels lonely in the new surroundings until he finds a McDonald’s. This ad was basically the friendliness of the McDonald’s personnel. Also the management of the firm in India noted that the local people were price sensitive. Thus they took out and ad with a tag of ‘Yesteryear’s Prices’. â€Å"It features Bollywood stars from past decades together with their sons and a message that prices have not risen in line with the passage of time† (Chaturvedi, 2008). Thus McDonald’s with a clear agenda timed their ads to perfection which gave them good returns. McDonald’s also with its advertisements gave its tagline utmost importance. This is evident from the fact that its initial ads were delivered with a punch line â€Å"McDonald’s Mein Hai Kuch Baat† which translates to ‘There is something special in McDonald’s’. When McDonald’s had been successfully established, its tagline changed to â€Å"To Aaj McDonald’s Ho Jaye† which means ‘Why not celebrate with McDonald’s today†¦Ã¢â‚¬â„¢ (Vikram Bakshi, MD, McDonald’s India). He also adds that the main focus of the company with its advertisements was to change the perception of the Indians that McDonald’s was an ‘American brand with typical American values’. As Arvind Singhal, Head of Marketing at McDonald's India says â€Å"From a marketing communications standpoint, we chose to focus on familiarizing the customer with the brand. † Presently all of the McDonald’s communication strategies are focused to move the consumers to some kind of action. This may either be to visit the restaurant, buy the product or recommend it to a friend. It is also framed so that the consumers remember the product. Thus the mantra of the firm is that the more it knows about the people it is serving the more it will be able to communicate messages that appeal to them. 0. 0 DISTRUBUTION AND SUPPLY CHAIN McDonald’s uses an outsourcing model al all its markets, in some places it actively imports but in India gets materials from different places in India (Dash, 2005) it has suppliers all over India, supplying different inputs. This is done on order to procure best quality of input at the best possible price. Selecting a supplier involves a fou r step process. In each step the prospective supplier is evaluated carefully. Only item imported is the equipment to dish out burgers. The major suppliers in India are: Input Product |Supplier Company |Location | |Iceburg Lettuce |Trikaya Agriculture |Talegacon(Maharashtra) | | |Ooty Farms |Ooty | | |Meena Argitech |Delhi | |Cheese |Dynamix Dairy |Baramati (Maharashtra) | |Milk & Milk Products for Frozen Desserts |Amrit Food |Delhi and Mumbai | |Buns & Sauces |1)Cremica Industries |Philluar (Punjab) | | |2) Shah Bector and Sons |Khopoli ( Maharashtra) | | | | | |Patties, Pies & Pizza puffs |Vista Processed Foods |Taloja | (Dash, 2005) The entire distribution process is carried on by AFL Logistics Ltd, McDonald’s official partner in logistics and supply chain. 10. 1 DISTRIBUTION McDonalds in India uses what is called as a ‘Cold Chain’. This means that the vegetables are stored in cold storage from the moment it is harvested. These are then transported to restaurants in refrigerated vans. Semi – finished products are also stored a particular temperature. This ensures freshness and maintains the moisture level of the food. In the restaurant also the products are refrigerated. In the restaurant the deliveries are made to the customer within 60 seconds and the mode of service is self service. This is done to maintain speedy and quick service. 11. 0 SWOT ANALYSIS McDonald’s in India has been for around for around 13 years. Till now it has complimented the values and the cultures of the locals in an extremely ethical way. But still it has some weaknesses and threats, which if not countered, may well become grave. Thus the SWOT analysis shows the areas where the firm can build up on its existing strong image. ? Strengths †¢ Strong Brand – The McDonald’s Corporation in India has been able to live up to its global image of being able to handle any type of market. It has shown that by adopting the right approach and methods, any market can yield positive results. This has not only consolidated its powerful image and strong brand values but also has made the job difficult for the new entrants. Customer Intimacy – The firm in India with its correct mix of communication has been able to tap majority of the audience it focused on and has also developed affection from the large children populace of the country with its Children Centric ads. †¢ Product Innovation – the Compan y with its timely product innovation has regularly kept the consumers interested in its menu which caters to their tastes. †¢ Variety in Menu, Reasonable Prices and Great Service – Also with wide options in the menu McDonald’s also offers great prices with burgers starting from Rs20 ( Around 15p) plus with ‘1 Minute Service’ customers do not return disappointed from the place. ? Weakness †¢ Product on the scale of Health – McDonald’s in India is still not selling products which are good for health or which are made keeping consumers fitness. They are trying to fine tune their menu by adding more baked products rather than fried patties, but apart from McCurry Pan (launched 2003) it has not been able to introduce more healthy products (Dash, 2005). This fact forces many health conscious people to avoid the place altogether. ? Opportunities †¢ Expanding in Tier 2 and Tier 3 Cities – Despite the firm’s success in the urban and the metropolitan cities of India, McDonald’s has still not explored the whole of the country. This is due to the fact that the smaller cities in India are more inclined towards the home cooked food and eating fast food out is generally limited to local food joints that specialize in Indian cuisine. This presents a good prospect for the company to experiment with its menu, as McDonald’s has already localized its menu to a very great extent in the country. Entry into Breakfast Category – One of the other things that the company has still not made a complete foray into is the ‘Breakfast Menu’. McDonald’s have started only a couple of outlets in Mumbai and Delhi on experimental basis that serve Breakfast menu in December 2008. The options in this menu are available from 7 am to 11am in the morning. But the company is still to operate it on a large scale. †¢ Strong Beverage Brand – McDonald’s in India have till now only concentrated on to the food items they serve. The beverages they offer are just plain Coke available in small and large and coffee, tea and hot chocolate with no proper advertising. But it still has the opportunity to advertise and bring in its own brand of beverage as compared to something like Star Bucks’ The beverage may hot or cold and would give McDonald’s its own identity in the market which is dominated by Coke and Pepsi. ? Threats †¢ Changing Customer Lifestyle – Today, India has changed considerably as compared to 10 years back. Simultaneously the customer tastes are changing at a very fast pace. McDonald’s needs to keep this thing in mind since the customer taste for a particular product in today’s environment is very short-lived. †¢ Increased Competition – Today with the increasing number of malls and shopping centers in India, the number of fast food joints and restaurants has increased significantly that offer similar kind of food at comparable prices. This can turn out to be a disadvantage to the company since it mainly concentrates on opening its franchises in these malls. 12. 0 CONCLUSIONS & RECOMMENDATIONS From the above report it is clear that McDonald’s marketing strategies in India have been successful. With complete understanding of the consumer and considering the various marketing environments, executing very reasonable prices to timely product innovation and lastly extremely effective communication techniques have included India in their long list of successful countries. The only thing that the company needs to focus on is to try and add more menu choice and variety to promote healthier lifestyles. Also it should contemplate its already existing operations before continuing expansion in rder to increase their profit margin and since India is a developing country the firm should try and concentrate on penetrating, at timely intervals, into more budding cities. 13. 0 REFERENCES Baines, P. , Fill, C. , Page, K. (200 8) Marketing Oxford University Press, New York. Chaturvedi, P. (2008) Super-localize me: how McDonald's evolved its marketing in India, Warc Exclusive. Chauhan, G. (2008) Language in India, Languages Group, Vol 8, Birla Institute of Technology and Science, India. Deng, T. (2009) McDonald’s New Communication Strategy on Changing Attitudes and Lifestyle, International Journal Of Marketing studies, Vol 1, SolBridge International School of Business, South Korea. Fifield, P. and Gilligan, C. 1996) Strategic Marketing Management, Butterworth- Heinemann, Oxford. Ghosh, R. , Balaji, D. , Shah, J. , Sherlekar, N. , Sidana, D. , (2009) McDonald’s: Behind Golden Arches. Kotler, P. & Keller, K. L. (2009) Marketing Management, 13th Edn, Pearson Prentice Hall, USA. McCarthy. (1975) Basic Marketing: A Management Approach, Irwin, Homewood, pg – 98. Media Trust, The Institute For Volunteering Research (1997) Introduction To Marketing, Volunteering England and the Centre for Inst itutional Studies at the University of East London, UK. Prof. Dash, K. (2005) McDonald’s in India, The Garvin School of International Management, USA. Sander. D. M. & Shani. D (1991) â€Å"Brand Globally but Advertise Locally? An Empirical Investigation, International Marketing Review, Vol – 9, No – 4, pg – 18 – 29. Varey, R. J. (2002) Marketing Communication: Principles and Practice, Route ledge, London,pp 127-129. Vignali. C (2001) McDonalds: Think Global, Act Local – The Marketing Mix, British Food Journal, Vol – 103, No -2, pg – 97 – 111. INTERNET REFERENCES http://www. bbc. co. uk/dna/h2g2/A593525 – viewed on November 16, 2009 http://www. bbc. co. uk/dna/h2g2/A3816740 – viewed on November 16, 2009 http://www. hinduonnet. com/2001/05/06/stories/01060003. htm – viewed on November 16, 2009 http://online. wsj. com/article/SB124628377100868055. html – viewed on November 16, 2009 http://www. businessweek. om/innovate/content/may2006/id20060508_952455. htm – viewed on November 16, 2009 http://www. bbc. co. uk/schools/gcsebitesize/business/marketing/productlifecyclerev1. shtml – viewed on November 23, 2009. http: //in. reuters. com/article/businessNews/idINIndia-29999520071015 – viewed on November 23, 2009. http://money. cnn. com/2009/07/10/news/companies/mcdonalds_global_international_menu. fortune/index. htm – viewed on November 23, 2009. http://www. businessworld. in/bw/2009_10_10_Quickening_Service. html – viewed on November 23, 2009. ———————– DELIVERY UNIVERSAL HOLDING CABINET ASSEMBLER INITIATOR FROZEN FOOD MATERIAL

Bsiness Strategy of Pepsico

PROJECT REPORT FOR BUSINESS STRATEGY-1 EVOLUTION OF BUSINESS STRATEGIES AT PEPSICO Submitted to:Submitted By: Prof. Sanjany SharanPrashant Sharma Parul Kapoor Mohit Madan Prerna Gupta Murali Krishna (Section-A) (Group – 10) ACKNOWLEDGEMENT We take this opportunity to express our gratitude towards Mr. Sanjay Sharan, Department of Marketing, IBS, Hyderabad. We are indebted to him for the expertise and invaluable guidance we have received while working on this project. Contents Introduction †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. PESTEL Analysis †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 6 SWOT Analysis†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦10 PORTER Analysis†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 14 4P @ Pepsi †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 18 Competitive Strategy†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 20 Recommendations†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦25 New Product Launch†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 27 Advertisement Strategy†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦34 Market Diversification Strategy†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 36 HR Strategy†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦39 Bottling Strategy†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢ € ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦45 INTRODUCTION OF PEPSICO Pepsi is one of the most well-known brands in the world today available in over  160 countries. The company has an extremely positive outlook for India. This reflects that India holds a central position in Pepsi's corporate strategy. India is a key market for Pepsi co, and at the same time the company has added value to Indian agriculture and industry. PepsiCo entered India in 1989 and is concentrating in three focus areas – Soft drink concentrate, snack foods and vegetable and food processing. Faced with the existing policy framework at the time, the company entered the Indian market through a joint venture with Volta’s and Punjab Agro Industries. With the introduction of the liberalization policies since 1991, Pepsi took complete control of its operations. The government has approved more than US$ 400 million worth of investments of which over US$ 330 million have already flown in. One of PepsiCo's key strategies was to develop a completely local management team. Pepsi has 19 company owned factories while their Indian bottling partners own 21. The company has set up 8 Greenfield sites in backward regions of different states. PepsiCo intends to expand its operations and is planning an investment of approximately US$ 150 million in the next two-three years. PESTEL ANALYSIS PESTLE analysis stands for â€Å"Political, Economic, Social, Technological, Legal and Environmental/Ecological analysis† and describes a framework of macro-environmental factors used in the environmental scanning component of strategic management. It is a part of the external analysis when conducting a strategic analysis or doing market research, and gives an overview of the different macro environmental factors that the company has to take into consideration. It is a useful strategic tool for understanding market growth or decline, business position, potential and direction for operations. PESTEL ANALYSIS FOR SOFT DRINK INDUSTRY Political – * Non-alcoholic beverages fall within the food category under the FDA. The government plays a role within the operation of manufacturing these products n terms of regulations. * There are potential fines set by the government on companies if  they do not meet a standard of laws. * The following are some of the factors that could cause Pepsi’s actual results to differ materially from the expected results described in their underlying company's forward statement:- * Changes in laws and regulations, including changes in accounting standards, taxation requirements, (including t ax rate changes, new tax laws and revised tax law interpretations) and environmental laws in domestic or foreign jurisdictions. Changes in the non-alcoholic business environment. These include, without limitation, competitive product and pricing  pressures and their ability to gain or maintain share of sales in the global market as a result of action by competitors. * Political conditions, especially in international markets, including civil unrest, government changes and restrictions on the ability to transfer capital across borders. Their ability to penetrate developing and emerging markets, which also depends on economic and political conditions, and how well they are able to acquire or form strategic business alliances with local bottlers and make necessary infrastructure enhancements to production facilities, distribution networks, sales equipment and technology Economic- * The companies are subject to the harvest of the raw material that they use in their snack foods, soft d rink and juice, like corn, oranges, grapefruit, vegetables, potatoes, etc. Because of they rely on trucks to move and distribute many of their products, fuel is also an important subject, so they are subject to the fuel price fluctuation, and to possible fuel crisis. * Operating in International Markets involves exposure to volatile movements in foreign exchange rates. The economic impact of foreign exchange rates movements on them is complex because such changes are often linked to variability in real growth, inflation, interest rates, governmental actions and other factors. * PepsiCo is also subject to other economic factors like money supply, energy availability and cost, business cycles, etc. Sociocultural influences: – * PepsiCo and moreover Pepsi is subject to the lifestyle changes, because of it bases her advertising campaigns in a concrete kind of people with an special lifestyle, it is for that PepsiCo has to pay a special attention on the lifestyle changes. * Particularly in the United States Pepsi drinkers are very defined, there is a kind of people who drinks Pepsi another kind who drinks Coca-Cola, it is for that they have to pay attention to the social mobility for not losing a possible market. Taking into account that PepsiCo is trying to introduce itself in underdeveloped markets, they have to be careful with the possible problems with the governments of this countries, and with the problems could rise from PepsiCo act with the people of this countries. Technological – * PepsiCo is subject to new techniques of manufacturing, for their three business sectors, snack food, juices and soft drinks. * It has to pay attention to the new distribution tec hniques. – And they have to fix their attention in the competence developed, to know about the new products. Even though, we have to take into account that specialized factors involve a heavy and sustained investment, we have to know that if we are able to achieve them, we could generate a competitive advantage. * Some of the factor conditions PepsiCo has to take into account, in each country where they want to introduce are – Unemployment. – Interest rate. (Short term, long term). – Labour legislation. Environment Aspect: * There are many aspects when it comes to the environmental concerns. * For Example the presence of Pesticides in the Pepsi content causes health hazards. Also the wastes generated in the manufacturing of Pepsi are left out without treatment which causes hazardous effects to the surrounding and the water table. * The plastic used for bottling is harmful for the environment. Moreover, the waste generated by the industries producing soft drinks also affects the environment. Legal Aspect: * The production distribution and use of many of PepsiCo product are subject to various federal laws, such as the Food, Drug and Cosmetic Act, the Occupational Safety and Health Act ad the Americans with Disabilities. * The businesses are also subject to state, local and foreign laws. The international businesses are subject to the Government stability in the countries where PepsiCo is trying get into (underdeveloped markets). * The federal, state, local and foreign environmental laws and regulations. * The businesses are also subject to de taxation policy in each country they are operating. * They also have to comply with federal, state, local and foreign environmental laws and regulations SWOT ANALYSIS It is the study of factors that affects the organization or the industry in both positive and negative ways. Strength: Strength is defined as any internal asset, technology, motivation, finance, business links, etc. hat can help to exploit opportunities and to fight off threats. Weakness: It is an internal condition which hampers the competitive position or exploitation of opportunities. Opportunity: It is any external circumstance or characteristic which favours the demand of the system or where the system is enjoying a competitive advantage. Threat: It is a challenge of an unfavourable trend or of any external circumstance which will unfavourably influence the position of the system. SWOT ANALYSIS PEPSICO Strengths Branding – One of PepsiCo’s top brands is of course Pepsi, one of the most recognized brands of the world, ranked according to Interbrand. As of 2008 it ranked 26th amongst top 100 global brands. Pepsi generates more than $15,000 million of annual sales. Pepsi is joined in broad recognition by such PepsiCo brands as Diet Pepsi, Gatorade Mountain Dew, Thirst Quencher, Lay’s Potato Chips, Lipton Teas (PepsiCo/Unilever Partnership), Tropicana Beverages, Fritos Corn, Tostitos Tortilla Chips, Doritos Tortilla Chips, Aquafina Bottled Water, Cheetos Cheese Flavoured Snacks, Quaker Foods and Snacks, Ruffles Potato Chips, Mirinda, Tostitos Tortilla Chips, and Sierra Mist. The strength of these brands is evident in PepsiCo’s presence in over 200 countries. The company has the largest market share in the US beverage at 39%, and snack food market at 25%. Such brand dominance insures loyalty and repetitive sales which contributes to over $15 million in annual sales for the company Diversification – PepsiCo’s diversification is obvious in that the fact that each of its top 18 brands generates annual sales of over $1,000 million. PepsiCo’s arsenal also includes ready-to-drink teas, juice drinks, bottled water, as well as breakfast cereals, cakes and cake mixes. This broad product base plus a multi-channel distribution system serve to help insulate PepsiCo from shifting business climates. Distribution – The company delivers its products directly from manufacturing plants and warehouses to customer warehouses and retail stores. This is part of a three pronged approach which also includes employees making direct store deliveries of snacks and beverages and the use of third party distribution services. Weaknesses Overdependence on Wal-Mart – Sales to Wal-Mart represent approximately 12% of PepsiCo’s total net revenue. Wal-Mart is PepsiCo’s largest customer. As a result PepsiCo’s fortunes are influenced by the business strategy of Wal-Mart specifically its emphasis on private-label sales which produce a higher profit margin than national brands. Wal-Mart’s low price themes put pressure on PepsiCo to hold down prices. Overdependence on US Markets – Despite its international presence, 52% of its revenues originate in the US. This concentration does leave PepsiCo somewhat vulnerable to the impact of changing economic conditions, and labour strikes. Large US customers could exploit PepsiCo’s lack of bargaining power and negatively impact its revenues. Low Productivity – In 2008 PepsiCo had approximately 198,000 employees. Its revenue per employee was $219,439, which was lower than its competitors. This may indicate comparatively low productivity on the part of PepsiCo employees. Image Damage Due to Product Recall – Recently (2008) salmonella contamination forced PepsiCo to pull Aunt Jemima pancake and waffle mix from retail shelves. This followed incidents of exploding Diet Pepsi cans in 2007. Such occurrences damage company image and reduce consumer confidence in PepsiCo products. Opportunities Broadening of Product Base – PepsiCo is seeking to address one of its potential weaknesses; dependency on US markets by acquiring Russia’s leading Juice Company, Lebedyansky, and V Wwater in the United Kingdom. It continues to broaden its product base by introducing TrueNorth Nut Snacks and increasing its Lipton Tea venture with Unilever. These recent initiatives will enable PepsiCo to adjust to the changing lifestyles of its consumers. International Expansion – PepsiCo is in the midst of making a $1, 000 million investment in China, and a $500 million investment in India. Both initiatives are part of its expansion into international markets and a lessening of its dependence on US sales. In addition the company plans on major capital initiatives in Brazil and Mexico. Growing Savory Snack and Bottled Water market in US – PepsiCo is positioned well to capitalize on the growing bottle water market which is projected to be worth over $24 million by 2012. Products such as Aquafina, and Propel are well established products and in a position to ride the upward crest. PepsiCo products such as, Doritos tortilla chips, Cheetos cheese flavored snacks, Tostitos tortilla chips, Fritos corn chips, Ruffles potato chips, Sun Chips multigrain snacks, Rold Gold pretzels, Santitas are also benefiting from a growing savory snack market which is projected to grow as much as 27% by 2013, representing an increase of $28 million. Threats Decline in Carbonated Drink Sales – Soft drink sales are projected to decline by as much as 2. 7% by 2012, down $ 63,459 million in value. PepsiCo is in the process of diversification, but is likely to feel the impact of the projected decline. Potential Negative Impact of Government Regulations – It is anticipated that government initiatives related to environmental, health and safety may have the potential to negatively impact PepsiCo. For example, manufacturing, marketing, and distribution of food products may be altered as a result of state, federal or local dictates. Preliminary studies on acrylamide seem to suggest that it may cause cancer in laboratory animals when consumed in significant amounts. If the company has to comply with a related regulation and add warning labels or place warnings in certain locations where its products are sold, a negative impact may result for PepsiCo. Intense Competition – The Coca-Cola Company is PepsiCo’s primary competitors. But others include Nestle, Groupe Danone and Kraft Foods. Intense competition may influence pricing, advertising, sales promotion initiatives undertaken by PepsiCo. Resently Coca-Cola passed PepsiCo in Juice sales. Potential Disruption Due to Labor Unrest – Based upon recent history, PepsiCo may be vulnerable to strikes and other labor disputes. In 2008 a strike in India shut down production for nearly an entire month. This disrupted both manufacturing and distribution. MICHAEL PORTER’S 5 FORCES MODEL: MICHAEL PORTER’S 5 FORCES ANALYSIS: Porter's five forces  is a framework for the industry analysis and business strategy development developed by  Michael. E. Porter  of  Harvard Business School  in  1979. It draws upon  Industrial Organization (IO) economics  to derive five forces that determine the competitive intensity and therefore attractiveness of a  market. Barriers to Entry: * Bottling Network: Both Coke and PepsiCo have franchisee agreements with their existing bottlers who have rights in a certain geographic area in perpetuity. These agreements prohibit bottler’s from taking on new competing brands for similar products. Also with the recent consolidation among the bottler’s and the backward integration with both Coke and Pepsi buying significant per cent of bottling companies, it is very difficult for a firm entering to find bottler’s willing to distribute their product. * Advertising Spend: The advertising and marketing spend in the industry is  in 2009  was around $ 2. billion (0. 40 per case * 6. 6 billion cases) mainly by Coke, Pepsi and their bottler’s. The average advertisement spending per point of market share in 2000 was 8. 3 million . This makes it extremely difficult for an entrant to compete with the incumbents and gain any visibility. * Brand Image / Loyalty: Coke and Pepsi have a long history of heavy advertising and this has earned them huge amount of brand equity and loyal customer’s all over the world. This makes it virtually impossible for a new entrant to match this scale in this market place. * Retailer Shelf Space (Retail Distribution): Retailers enjoy significant margins of 15-20% on these soft drinks for the shelf space they offer. These margins are quite significant for their bottom-line. This makes it tough for the new entrants to convince retailers to carry/substitute their new products for Coke and Pepsi. * Fear of Retaliation: To enter into a market with entrenched rival behemoths like Pepsi and Coke is not easy as it could lead to price wars which affect the new comer. So, it is explicit from these factors that entry to this industry for new player is tough as the existing brands are pretty strong. Bargaining Power of Buyers: The major channels for the Soft Drink industry are food stores, Fast food fountain, vending, convenience stores and others in the order of market share. The profitability in each of these segments clearly illustrate the buyer power and how different buyers pay different prices based on their power to negotiate. * Food Stores: These buyers in this segment are somewhat consolidated with several chain stores and few local supermarkets, since they offer premium shelf space they command lower prices, the net operating profit before tax (NOPBT) for concentrate producer’s in this segment is $0. 23/case Convenience Stores: This segment of buyer’s is extremely fragmented and hence has to pay higher prices; NOPBT here is  $0. 69 /case. * Fountain: This segment of buyer’s are the least profitable because of their large amount of purchases hey make, it allows them to have freedom to negotiate. Coke and Pepsi primarily consider this segment â€Å"Paid Sampling† with low margins. NOPBT in this segment is  Ã‚  $0. 09 /case. * Vending: This channel serves the customer’s directly with absolutely no power with the buyer, hence NOPBT of $0. 97/case. The level of bargaining power differs among groups of buyers. Therefore, buying power of buyers is moderate. Threat of Substitutes: * There are a large number of substitutes available for the carbonated beverages like juices, water, alcoholic drinks, tea, coffee etc. However, each company has a significant presence in the substitute market so that they can leverage upon the sales of these drinks. Because the substitute products are mostly included in each manufacturer’s product portfolio, the threat of substitutes is low. Internal Rivalry: * The Concentrate Producer industry can be classified as a Duopoly with Pepsi and Coke as the firms competing. The market share of the rest of the competition is too small to cause any upheaval of pricing or industry structure. Pepsi and Coke mainly over the years competed on differentiation and advertising rather than on pricing except for a period in the 1990’s. This prevented a huge dent in profits. Pricing wars are however a feature in their international expansion strategies. * In a maturing market such as the domestic carbonated sodas, the only way to gain market share is to steal from one’s rivals. Thus, Pepsi and Coke fight heatedly over prices, suppliers, spokespeople, retail space and most importantly, the taste buds of  consumers. So, the internal rivalry is quite cut-throat. Bargaining Power of Suppliers: * Most of the raw materials needed to produce concentrate are basic commodities like  Colour, flavour, caffeine or additives, sugar, packaging. Essentially these are basic commodities. The producers of these products have no power over the pricing hence the suppliers in this industry are weak. 4P STRATEGY OF PEPSICO PRODUCT: The main product of PepsiCo in the beverages market is the flagship soft drink ‘Pepsi’. The aerated drink is a widely accepted and popular thirst quencher around the world. The Pepsi-Cola drink contains basic ingredients found in most other similar drinks including carbonated water, high fructose corn syrup, sugar, colourings, phosphoric acid, caffeine, citric acid and natural flavours. Some other popular products by Pepsi are: 1. Diet Pepsi 2. Aquafina 3. Gatorade 4. Mirinda 5. Mountain Dew 6. Slice 7. Tropicana Juices Both the companies Coke and Pepsi have a number of products. Many of these products are innovations but there are also many products which are brought out just as a competitive product for the other companies. These products are merely launched as a result of the ’cola wars’. Ex: 1. Diet Coke V Diet Pepsi 2. Maaza V Slice 3. Sprite V 7Up 4. Fanta V Mirinda 5. Minute Maid V Tropicana [Strategy being used: Envelopment Strategy  (also called encirclement strategy) – This is a much broader but subtle offensive strategy. It involves encircling the target competitor. This can be done in two ways. You could introduce a range of products that are similar to the target product. Each product will liberate some market share from the target competitor’s product, leaving it weakened, demoralized, and in a state of siege. If it is done stealthily, a full scale confrontation can be avoided. ] PRICE: Pepsi has always had to price its product according to the trend in the industry. Since aerated drinks are often homogenous, Pepsi and Coke alike have had to indulge in a strategy of ‘competitive pricing’. However, the two companies have also tried to make changes in these patterns as Coke introduced Rs. 5 bottle for rural markets. Pepsi has also never been shy of reducing its price to match the competition and has been flexible in lowering its price to match competition. STRATEGY: COMPETITIVE PRICING: Setting the price of a product or service  based on  what the competition is charging. . This type of pricing strategy is generally  used once a price for a product or service has reached a level of equilibrium, which often occurs when a product has been on the market for a long time and there are many substitutes for the product. ] PLACE: Pepsi has spread its reach worldwide and into all p ossible channels. Pepsi products are commonly available at supermarkets, vending machines, mom-&-pop stores, department stores, general stores and convenience stores. Pepsi is also available at many restaurants and cafes through exclusive contracts and deals with these restaurant owners. Coke’s channel also is based on similar lines, to penetrate the market to the maximum extent and increase the availability and points of purchase for consumers. PROMOTION: The promotional strategies of Pepsi are very aggressive especially in the advertising domain. Pepsi has taken Coke head on, in all areas such as Personal Selling, Sales Promotion and Public relations. Scores of legendary slogans, high-profile celebrity endorsements have marked a very public promotional tussle between cola giants Pepsi & Coke. One popular example is the â€Å"There's nothing official about it† campaign in 1996-97 (During the Wills World Cup (cricket) held in India/Pakistan/Sri Lanka) when Coke had won the official sponsorship of the world cup. PEPSI’s COMPETITIVE STRATEGY WITH RESPECT TO COKE: Pepsi & Coke have been involved a legendary struggle for capturing market share worldwide. They have been competing with the strengths of one another and targeting the weaknesses. They have been involved in many marketing warfare strategies to gain an edge over each other & as a follower; Pepsi has given a great challenge to Coke in all aspects of the business. Let alone leaving the corporate strategies, Pepsi and Coke have even competed in Outer Space by trying to launch aboard the  Space Shuttle Challenger  on  STS-51-F. The companies had designed special cans (officially the Carbonated Beverage Dispenser Evaluation payload or CBDE) to test packaging and dispensing techniques for use in  zero G  conditions. The experiment was classified a  failure by the shuttle crew, primarily due to the lack of both  refrigeration  and  gravity. Some of Pepsi’s strategies include: BYPASS ATTACK: Here marketing takes a Machiavellian turns where you pretend to neglect the direct competitor and instead work on expanding your resource base. Key considerations are consolidating your base and building up to a frontal or flank attack. * Summer of 98? – Pepsi buys Tropicana for $3. 3billion. buying the market leader in the OJ space helps it compete directly against Coke’s Minute Maid. * 2000 – Pepsi buys Quaker Oats, the owner of Gatorade another dominant player in the sports drink market (80% market share as opposed to Coke’s Powerade) for $14 billion. Earlier in the program, Pepsi develops its bottled water brand Aquafina which now commands a 14% market share as opposed to Coke at 11% and Poland springs at 10%. * Moral of this story: You may lose the brand war with your flagship product but could win the overall EBIT war with your family of brands. FLANK ATTACK: 1. Avoid areas of likely confrontation. A flanking move always occurs in an uncontested area . 2. Make your move quickly and stealthily. The element of surprise is worth more than a thousand tanks. 3. Make moves that the target will not find threatening enough to respond decisively to. In 1915, Coke announced a 6. ounce bottle in an innovative style. Pepsi introduced a bigger bottle for the same price and did not leave Coke with many options to retaliate because Coke could not change its bottle since that was the innovation & the vending machines for these bottles could also not fit a nickel coin, which was the competitive price at which Pepsi was selling its bigger bottle. This strategy was a successful flank attack by Pepsi as it is designed to pressure the flank of the enemy line so the flank turns inward. You make gains while the enemy line is in chaos. In doing so, you avoid a head-on confrontation with the main force. The disadvantage with a flanking attack is that it can draw resources away from your centre defence, making you vulnerable to a head-on attack. GUERRILLA MARKETING: Aggressive marketing techniques are used more covertly by large organisations to improve advertising impact and reduce the likelihood of competitors’ retaliation. Pepsi’s   Ã¢â‚¬Å"There's nothing official about it† campaign in 1996-97 (During the Wills World Cup (cricket) held in India/Pakistan/Sri Lanka) when Coke had won the official sponsorship of the world cup was a great example of Guerrilla Marketing where they leveraged upon Coke’s sponsorship with a great slogan and a lower cost. FRONTAL ATTACK: in India, Coca-cola continually launches against its customary rival Pepsi. Of course, Coke in India attacks Pepsi because not only can it match up with Pepsi, which still is the market leader in India, but also gives it a severe psychological trouble with its dominant flanking brand, Thums Up. According to statistics, Thums Up is the number 2 brand in the Indian soft drink industry, third being Coke itself. Coke’s inexorable attack on Pepsi on the too sweet taste of the latter (Offensive Principle 2: Find a weakness in the leader’s strength and attack at that point), also creates a huge psychosomatic incongruity. Coke being worldwide superior to Pepsi is trying to create a battlefield positioning where the ultimate supremacy of the cola war in India goes to Coca-Cola. This is a direct head-on assault. It usually involves marshalling all your resources including a substantial financial commitment. All parts of your company must be geared up for the assault from marketing to production. It usually involves intensive advertising assaults and often entails developing a new product that is able to attack the target competitors’ line where it is strong. It often involves an attempt to â€Å"liberate† a sizable portion of the target’s customer base. In actuality, frontal attacks are rare. There are two reasons for this: * Firstly, they are expensive. Many valuable resources will be used and lost in the assault. * Secondly, frontal attacks are often unsuccessful. If defenders are able to re-deploy their resources in time, the attacker’s strategic advantage is lost. The strategy is suitable when * the market is relatively homogeneous * brand equity  is low * customer loyalty is low * products are poorly  differentiated the target competitor has relatively limited resources * the attacker has relatively strong resources Elsewhere in the world, Pepsi is the one who takes Coke head-on in terms of advertisements, sponsorships, exclusive deals, product line etc. ENCIRCLEMENT STRATEGY: Pepsi has taken Coke up not only on the Cola beverage front but also tackles its many variants and product lines. This is a much broa der but subtle offensive strategy. It involves encircling the target competitor. This can be done in two ways. You could introduce a range of products that are similar to the target product. Each product will liberate some market share from the target competitor’s product, leaving it weakened, demoralized, and in a state of siege. If it is done stealthily, a full scale confrontation can be avoided. Alternatively, the encirclement can be based on market niches rather than products. The attacker expands the market niches that surround and encroach on the target competitor’s market. This encroachment liberates market share from the target. Pepsi has launched many competitive products to match Coke and has not shied away from investing in innovative products and fighting for market share. Some of these competitive products are: 6. Diet Coke V Diet Pepsi 7. Maaza V Slice 8. Sprite V 7Up 9. Fanta V Mirinda 10. Minute Maid V Tropicana PRICING WARS: As far as pricing is concerned, Pepsi has always been the follower since Coke was the first brand to enter the market. Coke had recently trumped Pepsi with the introduction of its Rs. 5 bottle to penetrate rural markets. This strategy had been fairly successful and Pepsi had to lower its price to compete with the innovative pricing. Since both products are homogeneous in nature, the nature of pricing has to become cooperative and similar. DISTRIBUTION STRATEGY: Pepsi ; Coke are not only infiltrating markets by putting their bottles in general stores, supermarkets, mom ; pop stores, convenience stores, fountain sodas ; vending machines but they are also snagging exclusive deals with global and local food chains. Pizza Hut which is run by Pepsico’s Yum! Brands Inc. only serves Pepsi on its menu. Coke, meanwhile, just scored a big coup by winning the soft-drink business at Subway, a fast-food chain now bigger than McDonald’s, which had previously served only Pepsi. In Conclusion, we see that Pepsi ; Coke have been involved in a long and bitter battle as they exist in hyper markets and battle out an oligopolistic market situation. This condition has forced advertising costs to sky-rocket and employment of various tactics and strategies to gain market share across the globe. RECOMMENDATIONS ANSOFF’S MATRIX The Ansoff Growth matrix is a tool that helps businesses decide their product and market growth strategy. Ansoff’s product/market growth matrix suggests that a business’ attempts to grow depend on whether it markets new or existing  products in  new or existing markets. The output from the Ansoff product/market matrix is a series of suggested growth strategies that set the direction for the business strategy. These are described below: Market penetration Market penetration is the name given to a growth strategy where the business focuses on selling existing products into existing markets. Market penetration seeks to achieve four main objectives: †¢ Maintain or increase the market share of current products – this can be achieved by a combination of competitive pricing strategies, advertising, sales promotion and perhaps more resources dedicated to personal selling †¢ Secure dominance of growth markets Restructure a mature market by driving out competitors; this would require a much more aggressive promotional campaign, supported by a pricing strategy designed to make the market unattractive for competitors †¢ Increase usage by existing customers – for example by introducing loyalty schemes A market penetration marketing s trategy is very much about â€Å"business as usual†. The business is focusing on markets and products it knows well. It is likely to have good information on competitors and on customer needs. It is unlikely, therefore, that this strategy will require much investment in new market research. Market development Market development is the name given to a growth strategy where the business seeks to sell its existing products into new markets. There are many possible ways of approaching this strategy, including: †¢ New geographical markets; for example exporting the product to a new country Product development Product development is the name given to a growth strategy where a business aims to introduce new products into existing markets. This strategy may require the development of new competencies and requires the business to develop modified products which can appeal to existing markets. Diversification Diversification is the name given to the growth strategy where a business markets new products in new markets. Having analysed the various aspects of soft drinks industry in India and with reference to Ansoff’s model, Pepsi could launch a new product in the existing Indian market. This new product will be vitamin and nutrients enriched water. The new product will be called as PEPSI FRESH. STP ANALYSIS Segmentation: Target: Our main target is the affluent society in India where there has been no product ever launched by Pepsi in this category. We also target the Old Aged People for coming into the age bracket from 35 + and the health conscious people. Positioning: It is a highly differentiated product as no product has been introduced by pepsi or its competitors in this category. This would target the health conscious and the affluent. Marketing Mix: 4P Strategy Marketing mix is the process of designing and integrating various elements of marketing in such a way as to ensure the achievement of enterprise objectives. Marketing mix is a combination of marketing tools that are used to satisfy customers and company objectives. Creating a successful marketing mix that will increase results often takes experimenting and market research. The constituents of marketing mix are given below: PRODUCT Product refers to a physical product or a service or an idea which a consumer needs and for which he is ready to pay. Physical products include tangible goods like grocery items, garments etc. Services are intangible products which are offered and purchased by consumers. Services may involve also an innovative idea on any aspect of operation. A product is the key element of any marketing mix. The decisions concerning product may relate to – Product attributes * Branding * Packaging and labelling * Product support service * Product mix. Pepsi can launch this new product, called PEPSI FRESH, a vitamin and nutrient enriched water as India is a huge market for beverage industry with its population size of 1. 2 billion. This product is a product related to the health of the people and also the basic need i. e. , wat er. U. S. Consumption of carbonated soft drinks has steadily declined in the past decade. Part of that comes down to the array of alternative beverages the market now offers. Part of it comes down to health concerns in a nation with an obesity problem. In that spirit, Pepsi is focusing more on water, juices, teas and sports drinks. Pepsi’s top brands in those areas include Aquafina and Gatorade. And while it trails in soft drink sales, it leads the world in ready-to-drink teas through Lipton, while its Tropicana wins out in juices/nectars. The company is betting big on creating healthy foods through its Quaker Oats, Gatorade and Tropicana divisions. And it just began the Global Nutrition Group to deliver breakthrough products. As Caroline Levy, a CLSA analyst, noted, â€Å"PepsiCo is currently focused on better-for-you† products. So, our product will perfectly fit in their strategy. Attributes: * Flavours: Pepsi could provide 5-6 good flavours in this product. * Benefits: Vitamin water does feature multiple vitamins that are good for the body. One bottle of â€Å"FRESH† has 40 per cent of your daily value of vitamin C, and 20 per cent of your daily value of vitamins B3, B5, B6 and B12. * Branding: Pepsi has the advantage of number 1 player in the Indian beverages market. It is having huge capital reserves to fund its new product. The logo used for this could be PRICING Price is the amount charged for a product or service. It is the consideration paid by consumers for the benefit of using any product or service. Price fixation is an important aspect of marketing. There may be two types of Price fixation: * Cost based approach: This is the simplest method of pricing. Generally companies add a certain percentage of Profit, to the total cost of the product. The total cost of the product is calculated after taking all types of costs into consideration. While following this approach, no other factors e. g. prices of substitute goods, nature of demand, etc. are considered. * Competition-based approach : The prices are determined on the basis of conditions in the market. Companies may follow any one of the following three approaches. a) Price-in-line b) Market-plus c) Market-minus Price-in-line means prices fixed nearly equal to the prices of close alternatives. Generally this happens under free market conditions i. e. when the number of buyers and sellers is so large that they cannot affect the prices. When companies charge (fix up) a price which is more than the price of existing substitutes, it is called market plus pricing. This approach is adopted when the quality of a product is better, or it has a popular brand name, or its packaging is attractive and useful. Consumers will pay more only when they find distinctive differences in the product and its substitutes. Sometimes business enterprises get ready to supply products at a price lower than the market price. It may be adopted to grab a larger market share or to make a newly introduced product more popular. This approach is called market-minus approach. Companies having shorter channels of distributions or direct selling facilities can afford to fix a price lower than the prevailing market price. We will price the product in a higher segment above the normal mineral water. We will do some cost-revenue analysis to come up with the price. Basis and Assumptions: Total Fixed Cost Total (Rs. in lakhs) * Land & Building 50. 00 * Plant & Machinery 40. 00 * Other fixed assets10. 00 Total 100. 00 Cost of Production (Per annum) Total (Rs. in lakhs) * Working capital 350. 00 * Depreciation on building1. 50 @ 5% per annum. * Depreciation on plant & 3. 50 Machinery @ 10% per annum * Interest @ 15%18. 00 Total 373. 00 Sales Forecast = 45 lakh bottles Now, Total cost = Total fixed cost + Cost of Production = 100 + 373 = Rs. 473. 00 lakhs. Cost per bottle = 473/45 = Rs. 10. 5 Now, Price per bottle = 10. 5 + 138% mark-up = Rs. 25 per bottle. PLACE Place is another important aspect of 4P strategy. This refers to how an organization will distribute the product or service they are offering to the end user. The organization must distribute the product to the user at the right place at the right time. Efficient and effective distribution is important if the organization is to meet its overall marketing objectives. If an organization underestimates demand and customers cannot purchase products because of it, profitability will be affected. Pepsi can distribute this product through following channels: * Supermarkets. * Hypermarkets. * Convenience stores. * Institutional Tie-ups. * Public places like airports, multiplexes etc. PROMOTION Promotion refers to using methods of communication with two objectives: (i) informing the existing and potential consumers about a product, and (2) to persuade consumers to buy the product. It is an important element of marketing mix. In the absence of communication, consumers may not be aware of the product and its potential to satisfy their needs and desires. Techniques used in the promotion of project: * Advertising: * Advertising budget will be huge. * Advertising will be continued the entire year round. * Media Classes to be used: TV, Magazines and Radio. * Channel Genres: Entertainment, English Movies, Hindi movies, Music and Sports. * Day-Parts: All the day with heavy advertising in Prime time. * Sales Promotion: * Discounts will be given for the first month to entice the customers to use the product. * Extra incentives will be given to heavy selling retailers. * Free gifts can be given to the lucky customers. * Events: The Product will be launched with inauguration of Champions League T 20 Cricket tournament. Pepsi Fresh will be the main sponsor of the event. The promotional banners will look like this: ADVERTISING STRATEGY: After the liberalization policy in 1991 when Coke re-entered India, it found Pepsi had already established itself in the soft drinks market. The global advertisement wars between the cola giants quickly spread to India as well. Internationally, Pepsi had always been seen as the more aggressive and offensive of the two, and its advertisements the world over were believed to be more popular than Coke's. It was rumoured that at any given point of time, both the companies had their spies in the other camp. The advertising agencies of both the companies (Leo Burnett for Coke and HTA for Pepsi) were also reported to have insiders in each other's offices who reported to their respective heads on a daily basis. Pepsi has focused on ‘Youth’ centric values by using young celebrities such as Ranbir Kapoor and cricketers for its advertisements, also incorporating taglines such as ‘Yeh hai youngistaan meri jaan’. Internationally too, Pepsi has always had a young target audience. Many of their ads were historically targeted at teens and even pre-teens and are injected with fun, sports and most often, music. Pepsi has leveraged all manner of musical celebrities over the years, from Ray Charles to Britney Spears. Coca-Cola ads depict human experience in two primary ways. First, long before global branding was the trend it is today, Coca-Cola was embracing diversity. This can be clearly seen in its long-running â€Å"I’d like to buy the world a Coke† series of ads, depicting people from all over the globe joining together in Coke and song. Further, Coca-Cola has long been vailable in one form or another in countries all across the world and it’s even rumoured to be the most recognizable brand, logo and even word on the planet (the latter with the possible exception of â€Å"ok†). When Coca-Cola ads aren’t targeting worldwide diversity, they still possess a strong sense of community and overcoming differences and hardship throug h universal similarities such as a love for Coke. P P Pepsi has also paid close attention to its Packaging and always comes up with innovative cans, bottling and frequently changes it logo. However, Coke is not similar in this respect and only makes minor changes in its logos and cans. Coke has so far indulged in emotional marketing and tried to tap into the sentiment of Indian values by focusing on family packs, diwali advertisements and rural markets. Some legendary campaigns include: * The Pepsi Challenge ads showing people doing blind taste tests kicked off the fun in 1975. * In 1985 both were launched into space aboard the Space Shuttle Challenger with specially designed cans, although the crew considered both failures. * Over the years the formula was tweaked so that Pepsi ads featured celebrities stressing the drink was the â€Å"The Choice of a New Generation†. By the 1990s the Pepsi strategy revolved around consumers being invited to â€Å"Drink Pepsi, Get Stuff† by collecting Pepsi Points on packages and cups which they could redeem for lifestyle merchandise. Millions took part and the Pepsi Stuff campaign was considered a huge success. MARKET SEGMENTATION AND DIVERSIFICATION STRATEGY OF PEPSICO CURRENT SITUATION: * PepsiCo has ample opportunities to increase their market share and to grow if they concentrate on market diversification. * Pepsi and coke both have almost the same market share, but the markets where their strengths lie are different. The general market is dominated by Pepsi whereas restaurants, colleges, cinema halls are dominated by coke. * In Pakistan where PepsiCo has nearly 60% market share and its nearest competitor is coke. Coke is already devising strategies to become the market leader from follower in Pakistan. * Loyalty toward the brand â€Å"Pepsi† is relatively low in the Indian market. * Their marke t share in the Indian rural segment is low compared to coke. * Low productivity. WHAT PEPSICO CAN DO? * Pepsi’s primary consumers are teenagers, young and adults. So Pepsi can diversify their target market a bit and target these teenagers at clubs, restaurants, cinema halls etc, where coke has substantial share. * Concentrate more on the rural markets which has a lot of potential. Widen their distribution network; know what the consumers in that market want. Already coke presence in rural market through it’s â€Å"thanda matlab coca-cola† ad campaign. Through proper promotion and distribution channels Pepsi can catch up with coke in the fast-growing rural market. * Pepsi has a loyal customer base in Pakistan. It should not lose out this segment to coke. People who are already brand conscious use Pepsi. Hence they should concentrate on reinforcing their brand image and maintain the loyalty towards their brand. By doing so they can easily penetrate the other near-by markets, which will be a huge advantage. * Pepsi depends a lot on the US market. Hence it should diversify its market on a large scale and allocate necessary budgets for achieving desired results. Even though it’s long-term, strategies regarding which markets to enter and necessary budget allocations must be made now and must be implemented at the right time. Different growth strategies are appropriate for companies operating in different types of markets and Pepsi should decide on different strategic options according to the stage they are in their organizations life cycle. * Despite efforts made by PepsiCo to retain its customers through extensive marketing strategies and consumer loyalty programs, consumers are not loyal. Hence they should turn their strategies t owards building loyalty among consumers by affecting their purchasing decisions and at the same time diversify to other markets. Relying solely on one consumer market may prove harmful in the long-run and also it will be in line with other strategic decisions as discussed above. * PepsiCo’s diversification is obvious in that the fact that each of its top 18 brands generates annual sales of over $1,000 million. But having said that PepsiCo has approximately 198,000 employees and its revenue per employee is $219,439, which is lower than that of its competitors. This may indicate comparatively low productivity on the part of PepsiCo employees. To achieve strategic goals like market diversification, budget allocation plays a very important role and is crucial for success. Hence cutting down on costs and improving productivity must also be taken care of. * PepsiCo has been using all four marketing strategies from Ansoff’s matrix. Each strategy contributed to the company’s overall success but the diversification strategy seems to be the most favorable strategy for Pepsi, given the present market conditions. * By capturing various markets one at a time using different but appropriate strategies, Pepsi can become the market leader in the long run. HUMAN RESOURCES STRATEGIES OF PEPSICO LEADERSHIP AT PEPSICO INSIDERS AT PEPSICO INC (PEP) Name (Connections)| | Title| Type of Board Member| Age| Indra Nooyi | | | Chairman and Chief Executive Officer| –| 55| Eric Foss | | | Chairman of Pepsi Bottling Group, Chief Executive Officer of Pepsi Bottling Group and Chief Executive Officer of Pepsi Beverages Company| –| 52| Robert Pohlad | | | Chairman of PepsiAmericas and Chief Executive Officer of PepsiAmericas| –| 56| Irene Rosenfeld | | | Chairman of Frito-Lay North America Division and Chief Executive Officer of Frito-Lay North America Division| –| 57| Other Board Members on Board* Name (Connections)| | | Primary Company| Age| Ray Hunt | | | | Hunt Consolidated, Inc. | 67| Arthur Martinez | | | | Sears Investment Management Company| 72| Dina Dublon | | | | Microsoft Corporation| 57| James Schiro | | | | Zurich International (Bermuda) Ltd. | 65| Sharon Rockefeller | | | | Pepsico, Inc. | 66| Daniel Vasella M. D. | | | | Novartis AG| 57| Victor Dzau M. D. | | | | Kearny Venture Partners| 65| Alberto Ibarguen | | | | John S. & James L. Knight Foundation| 67| Ian Cook | | | | Colgate-Palmolive Co. | 58| Lloyd Trotter Ph. D. | | | GenNx360 Capital Partners| 65| Shona Brown | | | | Google In| | Human Resource Planning In Pepsi For Human resource planning the strategic goals and objectives are the key activities. Same is the case in the Pepsi. With the start of the season the goals and objectives are set. The goals of the organization are * To provide quality product by meeting customer demands. * To remain market leader and provide continuous improvement in its brand quality. * To provide good services to customers, employees, communities, and the environment. Human Resource Planning Process in Pepsi In Pepsi managerial estimates are used to determine the total future need of Human Resources in the organization. Than human resource department take actions to fulfill these needs. The employees hired both on permanent basis and temporary basis. After the season the temporary employees are layoffs. Normally the temporary employees are hired in production department. Tools and Techniques of Human Resource Planning Many tools are available to assist in human resource planning. In Pepsi the most commonly used tools are 1) Succession Planning. (Managerial employees) 2) HRIS (non managerial employees) Recruitment in Pepsi In Pepsi the issue of employees hiring is more critical as compare to other organizations because there is cyclical demand for employees. Pepsi uses both methods internal and external for recruitment depending upon the number of the employees required. Internal Recruitment Methods External recruitment is necessary for the organizations like Pepsi that are rapidly growing because there are large demand of people and internal sources are not sufficient to fulfill this demand. Pepsi use following methods of internal recruitment to attract their existing employees to apply for jobs available in Pepsi 1) Job Posting and Biddings ) Memos to Supervisors External Recruitment Methods Pepsi also use external recruitment methods to recruit a pool a qualified employees so that the most suitable persons can be hired for the job vacancies available in organization. Pepsi use the following external methods of recruitment 1) Job advertisement 2) Employees referrals and walk-ins 3) Campus recruiting Who Is Responsible For Recruitment In Pepsi assistant Human Resource Manager Miss Parsa Habib is responsible for both external and internal recruitment. Selection in Pepsi There are two different process of selection in this company for non-managerial and managerial employees Selection process for non-managerial employee Selection process for Managerial employees First the candidate applies or sends their resumes than an entry test is conducted by the organization. If the candidate is successful in this test than he move towards the next step of initial interview and then final selection is conducted by the manager of concern department and he makes the final decision about selection. Orientation in Pepsi Orientation is the process of introducing of new employees to the organization, their work units, and jobs. In Pepsi there are two types of orientation exist. In Pepsi there are two types of orientation exist 1) Official orientation provided by the organization. 2) Unofficial orientation provided by the co-workers. Official orientation is for the managerial employees and unofficial orientations are for the non-managerial employees. Length and Time of Orientation In Pepsi, the length and timing period of the orientation program is very short usually from 1 to 2 hours. Orientation Kit There is no concept of orientation kit in Pepsi. They are not providing their employees orientation Kit. Training in Pepsi Training for new employees is very necessary because without the proper training of employees no organization can achieve maximum output from their employees. Every organization offers their employees training so that they can sharp their skills and perform their jobs well. Pepsi is also offer to their employees training. They are doing both off the job and on the job training. 75% on the job training and remaining is classroom training. Following are the commonly used methods of training in Pepsi * Understudy assignment. * Coaching. * Classrooms training. * University and professional associations. Off the job training methods are used by the non-managerial employees or technical staff. Classrooms training and university and professional association are generally used for managerial employees. Who Train the Employees? In case of non-managerial employees training the immediate manager train the employees. This is for 3 days to 1 Month. For managerial employees Pepsi hire professional trainer. This training is held Hotels. This training is for 3 days to 15 days. Training Evaluation In Pepsi, there are no proper training evaluation system exists. Career Planning In Pepsi Pepsi provide career development opportunity only for managerial employee. . In Pepsi there is no concept of career development for the non-managerial employees because of this there is a very high employee turnover rate in Pepsi. Performance management system in Pepsi Performance management system is the important components of human resource management. Through this the organization identifies the strong and weak points of their employees and tries to rectify them. In Pepsi they have no proper way of evaluating the performance of their employees. Compensation and Benefits in Pepsi Compensation and Benefits motivates the employees and these must be offer by the organization. In Pepsi there is no concept of compensation and benefits for the non-managerial employees but Pepsi offer benefits and incentives to the managerial employees. These includes * Medical allowances * House rent * Education allowances * Convince allowances Recommendation Increase compensation and benefits to retain their existing employees also should have a better career development strategy to make it happen for their employees to go up the organizational hierarchy. * A better orientation strategy should be adopted to socialize their employees with the organizational rules and regulation also they should provide orientation kit to its employees * Career developmen t is necessary in every organization. Because it something that makes employees satisfied and increase their performances level ultimately this increase organization productivity. This is also helpful in achieving organization objectives. * Training Evaluation is very necessary because there are a lot of benefits of training Evaluation. We come to know our strengths and weaknesses through training evaluation, thus PepsiCo should have a mechanism to evaluate it. BOTTLING STRATEGY The Pepsi Bottling Group, Inc. was the world's largest bottler of Pepsi-Cola beverages. PBG sales of Pepsi-Cola beverages accounted for more than one-half of the Pepsi-Cola beverages sold in the United States and Canada and about 40 per cent worldwide. PBG had the exclusive right to manufacture, sell and distribute Pepsi-Cola beverages in all or a portion of 43 states, the District of Columbia, nine Canadian provinces, Spain, Greece, Russia, Turkey and Mexico. Approximately 70 per cent of PBG's volume was sold in the United States and Canada. Pepsi Bottling Group was based in Somers, New York. On August 4, 2009 The Pepsi Bottling Group and another major Pepsi bottler, PepsiAmericas, were purchased by PepsiCo, headquartered in Purchase, New York. The purchases were completed on February 26, 2010, forming a wholly owned PepsiCo subsidiary, the Pepsi Beverages Company (PBC). PBG's largest operations are in its North American and Western European markets, which have recently been hit by declining consumption of carbonated soft drinks. Consumer preferences have been shifting away from carbonated soft drinks, which accounted for around two-thirds of PBG's 2006 units, to healthier alternatives. The prices of production inputs, especially aluminium and corn, have been rising as well, putting additional pressure on PBG's profits. Despite these difficulties, PBG has performed relatively well. The Pepsi brands are very well known and enjoy significant brand loyalty. PBG's international markets have seen steady growth, helping to offset the sluggish domestic market. Also, PBG's performance is inherently tied to that of PEP, providing PBG with a certain degree of security in the highly competitive non-alcoholic beverage market. STATISTICS We see that the profit for the year 2006 was 5,830 million. When pepsi overtook 2 bottling plants it resulted in saving of 15 cense per bottle manufactured. It increased the gross profits to 6,210 million by the end of 2008. Pepsi already owns 33. 1 per cent of PBG stock and 43 per cent of PAS and since both bottlers have reported good FQ results and have increased their earnings forecast for the year, analysts believe that it is highly likely that even PAS will reject Pepsi's offer. While making the offer, Pepsi had said that the consolidation of its bottlers would bring in a saving at least $600 million a year, but PBG believes that the synergies would bring in savings in multiples of $600 million, based on its own internal analysis. This brings the profit statistics to