Essay: Pepsico’s Indian Operations

In order to convince the Indian government Pepsi made a smart business proposal that addressed the inherent needs of the Indian economic and socio-political forces. Pepsi proposed that it will put in place research centers that would allow agro-processing, create 50,000 jobs in the country, and its soft drink business will only use twenty-five percent of its total investment. It illuminated the benefits it would bring to the Punjab province by creating 25,000 jobs, and bringing back the troubled youth of the province .

Pepsi did help to stimulate the Indian agricultural sector but it did not actually bring about a boom in the sector. Even though, it did make high promises to invigorate the agricultural sector but it did not fulfill them. For instance, “the annual requirements that Pepsi had proposed to render 25,000 tons of potatoes per annum had resulted in only 3,000 tons from its contract farmers”.

Nonetheless, the strategy used by Pepsi to enter the Indian market was perfectly planned and well suited to the agro based economy. They had a good strategic insight of their prospective market and had a well sought out plan to establish hold in India. They appealed to the economic and political needs of the Indian government and it must be appreciated that they played their cards well. The proposal did put a lot of emphasis on itself, being a solution to the problems of  Punjab province. By targeting the big province of Punjab and appealing to provide a solution to its ongoing problems, Pepsi made a prudent strategic move. Its proposal to relocate the mismanaged youth back to the province, as a result of creating more jobs was in no doubt one of the key reasons the proposal was accepted. This is because Pepsi put forward itself as providing a new hope for the troubled youth of a province in turmoil.