Pepsi considers IPL withdrawal

[SLICKR392]

lol-wut? Average people are more interest in coca-cola. Here in BD, you will find coke almost everywhere, well except for KFC

Huh? What does Coke's fame got to do with Pepsi?

[Swing_n_Speed]

lol-wut? Average people are more interest in coca-cola. Here in BD, you will find coke almost everywhere, well except for KFC

In terms of revenues Coco-Cola is way bigger than Pepsi, with Cola sales outstripping that of Pepsi in most countries. Only a few countries are exception to that and India is one.

[G_B_]

All the Pepsi launches via the IPL have turned out be duds. 'Pepsi Atom' the josh cola is a rather fuss cola (one of the biggest product launches at Pepsi in recent times), Mountain Dew, Slice and other product sales haven't exactly picked up the they they were expected to. Last year they stayed away from IPL as they were trying to promote football through Ranbir Kapoor "Play the Game", that too was a complete dud. Their intention behind IPL title sponsorship was to bridge the gap on Coca Cola's leadership in the carbonated soft drinks market during the peak summer months which seems to have failed big time so far. No wonder they are trying to find an alibi to somehow come out of this IPL sponsorship.

do you have any articles to support this? or just personal observations. Maybe something that flopped in say Delhi might have been hit elsewhere?

[diga]

Pepsi bought the title rights of the IPL for five years for a whopping Rs 396 crore. Once this decision was taken, there was more that they had to spend. In for a penny, in for a pound, as the saying goes. So Pepsi had to invest in airtime on the official broadcaster and other channels, they had to invest in TVCs and other communication and had activation. That was to ensure that Coke could not outshout them during the IPL on the official channel, on other channels with high viewership and on ground. In addition, for abundant caution, Pepsi invested in sponsorship of IPL teams, so that the Coke logo had little opportunity to be seen. Pepsi managed to bag the rights to all the IPL teams – bar one. That one is Mumbai Indians, the team which eventually became champions of IPL 6.

:hysterical:

[zumi]

can hardly find pepsi atom anywhere

[SLICKR392]

can hardly find pepsi atom anywhere

It sucks! As crap as its ad. Mix some spices on your Pepsi and voila! you got an Atom.

[saket123]

What is this? a joke? Who the heck cares about "Brand Image" in India? Show me ONE Indian who will not drink Pepsi because of it's association with IPL or any other shady organization or individual. Now if they stand to lose revenue because an IPL team is getting scrapped, that's a different thing.. But Spot fixing, visitations by prostitutes, BCCI presidential drama, etc.. are ALL good things in India.. It keeps the Media alive and buzzing.. and it keeps people hooked to the TV on their couch sipping Pepsi.

[prasadiyer]

I mean look at the finals yesterday 70,000 in total (with 61,000 paying). No corporate entity is going to be stupid to refuse such numbers. Its not as if Pepsi themselves are clean. They probably have many of fertilizer issues in their drinks.

But, as Anupam Kher explains to Prem Chopra in Arjun; Beimaan usey kahtey hain jo pakra jaayein.

[saneindian]

do you have any articles to support this? or just personal observations. Maybe something that flopped in say Delhi might have been hit elsewhere?

Pepsi's Rs 160 crore spend fails to add fizz to its stock during 6th edition of IPL

[Crookbond]

Did IPL debacle force President Manu Anand out of PepsiCo India? http://www.firstpost.com/business/did-ipl-debacle-force-president-manu-anand-out-of-pepsico-india-892533.html

New Delhi: Beverages and snacks major PepsiCo India today said its India Region President Manu Anand has quit the company with immediate effect after working with the company for 19 years. “PepsiCo India Region President Manu Anand has decided to join another company and is leaving PepsiCo. His successor will be announced in due course,” a PepsiCo India spokesperson said in a statement. Anand could not be reached for comments. According to an Economic Times report quoting two company officials the reason behind his sudden departure are loss of market share to Coca-Cola and lower-than-expected returns from huge spend on IPL. The leadership change in PepsiCo India comes a day after rival Coca Cola announced that its India and West Asia CEO and President, Atul Singh was promoted as Deputy President of the company’s Pacific Group with effect from July 1. Following the development, PepsiCo India CEO (Beverages) Gautham Mukkavilli and PepsiCo India CEO (Foods) Praveen Someshwar will now directly report to PepsiCo AMEA (Asia , Middle East and Africa) head Saad Abdul Latif. Anand became chairman of PepsiCo’s India Region in January 2011. In this role, he was responsible for the company’s beverage and foods businesses in India and neighbouring South Asian countries except Pakistan. He had joined PepsiCo in 1994 as CFO, Frito-Lay India, and in 1998 assumed the role of Managing Director of Frito-Lay Business of PepsiCo India Holdings Ltd, the company said. More recently, he served as General Manager, South East Asia Business Unit of PepsiCo from 2007 to 2010, prior to assuming his current role, it added. In 2011, Anand had succeded Sanjeev Chadha who moved to PepsiCo’s Middle East and Africa operations.

[bulbul]

I always wondered how much benefits Corporates really get by sponsoring sportsperson,tournments etc.

[Muloghonto]

lol-wut? Average people are more interest in coca-cola. Here in BD, you will find coke almost everywhere, well except for KFC

Pepsi co. made 66.5 billion dollars (gross income, 6 billion+ profit) of which, Pepsi India is probably no more than a 5% contributor. Pepsi is not going to go bankrupt over India and yes, Pepsi is way too big to be hugely affected by sponsorship of IPL. That being said, this is a 50-50 decision for Pepsi. They are making the right noises though and I hope they pull out- it will give BCCI enough incentive to run a straight tourney.

[Crookbond]

I always wondered how much benefits Corporates really get by sponsoring sportsperson' date='tournments etc.[/quote'] Most benefits are sales related not viewership related. For example, Disney makes more sales on rides, toys etc. rather than movies.

[bulbul]

Most benefits are sales related not viewership related. For example' date=' Disney makes more sales on rides, toys etc. rather than movies.[/quote'] Thats different case , even Sports teams make millions of dollars selling merchandise. I am talking baout specific examples like Pepsi sposoring IPL and getting returns from that brand value.

[Crookbond]

Thats different case , even Sports teams make millions of dollars selling merchandise. I am talking baout specific examples like Pepsi sposoring IPL and getting returns from that brand value.

Any reason why the same shouldn't follow for Pepsi? I don't see the case as different.

[bulbul]

Any reason why the same shouldn't follow for Pepsi? I don't see the case as different.

Disney produce both [Movies & Toys] Pepsi produce only Pepsi , they sponsor cricket.It may get benefit out of teh sponsorship , but how can it guarnatee about profit after spending so much money?

[Crookbond]

Disney produce both [Movies & Toys] Pepsi produce only Pepsi , they sponsor cricket.It may get benefit out of teh sponsorship , but how can it guarnatee about profit after spending so much money?

:facepalm: Disney produces movies. Disney produces rides, toys which drive their sales. Pepsi produces a soft drink. Pepsi sponsors IPL which drives their sales of soft drinks. Compadre?

[saneindian]

Lot of expected upheaval at Pepsico post IPL fiasco, something that I had alluded to in post #19. Have heard brand managers of different categories have been asked to quit as well.

[Muloghonto]

I think IPL is still a small part of their sales drive. They get far more sales generated out of random ads interrupting news and saas-bahu style sitcoms and roadside ads, so it is only so much of a revenue generation concern for them. At best, its a golden growth opportunity lost, not a maket-share loss. But if they think the damage done to brand value is significant, it is not an injustifiable act either, in business sense.

[bulbul]

:facepalm: Disney produces movies. Disney produces rides, toys which drive their sales. Pepsi produces a soft drink. Pepsi sponsors IPL which drives their sales of soft drinks. Compadre?

But reports says they didnt gain much market share,so its not clear how much sponsoring IPL benefitted them,also do not forget the Money they are spending on sponsorship. I didnt understood your first point ,does rides & toys drive movei sale or viceversa ?