Pepsi’s new initiative in rural markets faces a branding challenge
Health continues to be the predominant plank for Pepsi. Indra Nooyi affirms, “Pepsi’s beverage portfolio in India is 30: 70 proportion of ‘good for you’ product: ‘fun’ product. But we would be making it 50:50 by focusing more on healthy lines.” Apart from that, the company wants to engage in manufacturing healthy products for the poor who suffer from deficiencies of key micro nutrients like iron and Vitamin A. The genesis of a Re.1/Re.2 product line is expected very soon for the rural market.
It’s basic economic theory that in a slowdown, FMCG would be one of the last to fall, as it accounts for a miniscule part of the buyer’s income. And when we talk about Re.1 shampoo satchet’s or Re.2 health products, they are quite a potent insurance for slowdowns! But in a market used to the likes of Parle-G and Britannia Tiger, Pepsi will have to face quite an uphill communication challenge. It is being speculated that the company may do a brand extension of its Frito-Lay brand. That would indeed be a prudent step to overcome the branding challenge.
Health continues to be the predominant plank for Pepsi. Indra Nooyi affirms, “Pepsi’s beverage portfolio in India is 30: 70 proportion of ‘good for you’ product: ‘fun’ product. But we would be making it 50:50 by focusing more on healthy lines.” Apart from that, the company wants to engage in manufacturing healthy products for the poor who suffer from deficiencies of key micro nutrients like iron and Vitamin A. The genesis of a Re.1/Re.2 product line is expected very soon for the rural market.
It’s basic economic theory that in a slowdown, FMCG would be one of the last to fall, as it accounts for a miniscule part of the buyer’s income. And when we talk about Re.1 shampoo satchet’s or Re.2 health products, they are quite a potent insurance for slowdowns! But in a market used to the likes of Parle-G and Britannia Tiger, Pepsi will have to face quite an uphill communication challenge. It is being speculated that the company may do a brand extension of its Frito-Lay brand. That would indeed be a prudent step to overcome the branding challenge.
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