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Can Nooyi bring back the fizz in Pepsi?

Last updated on: March 31, 2011 16:34 IST

Can Nooyi bring back the fizz in Pepsi?

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Coke or Pepsi? Which do you prefer? Well, after decades of bitter battles, which cost both the companies millions of dollars, Coke has emerged the winner.

Diet Coke has beaten Pepsi's Cola. Coca-Cola Classic became the No.1 drink in the US with a sales of more than 1.6 billion cases sold in 2010, despite being criticised for alleged health side effects, aggressive marketing to children, unfair labour practices and high levels of pesticides in its products.

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Image: Coca-cola advertisement.

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While 927 million cases of Diet Coke were sold in the US, Pepsi sold 892 million cases of its cola.

Coke brands ruled the market with a share of 41.9 per cent of the total market last year compared to PepsiCo's 29.9 per cent.

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Image: Pepsi advertisement.

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Can Nooyi bring back the fizz in Pepsi?

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The Coke-Pepsi rivalry got stinky in the early nineties when commercials showed that PepsiMax tastes better than Coke Zero.

Despite the marketing blitz, Pepsi succumbed to failure in the beverages war.

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Image: Coca-cola advertisement.

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Can Nooyi bring back the fizz in Pepsi?

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Diet Coke, launched in 1982 has become the top low-calorie drink in the world. But this has not deterred Pepsi from focusing on its 'healthy foods' strategy.

The market share of both the companies in the beverages sector has declined. While both the brands are seeing a dip in market share, Pepsi's loss is most visible.

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Image: Diet Coke.

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Can Nooyi bring back the fizz in Pepsi?

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While Coke's beverage volume in North America dropped only 2 per cent in 2010, Pepsi's beverage volume fell by 8 per cent.

It has been a big blow for Pepsi, which is now trying to surge ahead with innovative ideas and smarter marketing techniques.

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Image: Diet Pepsi.

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Can Nooyi bring back the fizz in Pepsi?

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Undoubtedly under Indra Nooyi's leadership, PepsiCo's growth hit new highs.

From taking over Tropicana in 1998 and Quaker Oats in 2000, she is the chief architect of PepsiCo's multi-year growth strategy.

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Image: Indra Nooyi, CEO, PepsiCo.

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Can Nooyi bring back the fizz in Pepsi?

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She has directed the company's global strategy for more than a decade and led its restructuring, including the divestiture of its restaurants into the successful YUM! Brands, Inc and Gatorade businesses to PepsiCo and the merger with PepsiCo's anchor bottlers.

Both the cola giants sell bottled water, fruit juices, energy drinks and sports drinks to maintain market share.

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Image: Yum brands.

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Can Nooyi bring back the fizz in Pepsi?

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While Coca-cola continues to keep its focus on Diet Coke and other beverages, PepsiCo aims to reap rich dividends from other products.

PepsiCo's products include Frito-Lay, Quaker, Pepsi-Cola, Tropicana and Gatorade.

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Image: Pepsi's products.

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Can Nooyi bring back the fizz in Pepsi?

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And Coca-Cola's products include Thums Up, Sprite, Fanta, Limca, Minute maid, Pulpy orange, Maaza and Georgia.

PepsiCo receives 18 per cent of its overall revenue, from 'healthy products'. The Global Nutrition Group has been formed to introduce innovative and catchy products for the health conscious people.

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Image: Coca-cola's products.

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According to Nooyi, Global Nutrition Group is part of the company's long-term strategy to grow nutrition business from about $10 billion in revenues today to $30 billion by 2020.

With nearly $60 billion in revenue, PepsiCo employs 285,000 people worldwide.

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Image: Indra Nooyi.

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Coca-Cola CEO Muhtar Kent has a clear focus on selling soft drinks globally. He has set higher targets for sales in America.

As for Nooyi, the focus and investment will continue to be on 'healthy products' to win over the growing population of diet conscious people.

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Image: Coca-Cola CEO Muhtar Kent.

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Can Nooyi bring back the fizz in Pepsi?

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Trends reflect US consumers are clearly switching to 'healthier' drinks like fruit juices, ready-to-drink teas and energy drinks.

But for PepsiCo, will moving away from the company's core business pay off?

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Image: People prefer healthy drinks.

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Can Nooyi bring back the fizz in Pepsi?

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With Diet Pepsi falling to the third position in the US, questions are now being raised on whether Nooyi's plans are on the right track.

Can Indra Nooyi bring back the fizz in Pepsi? Now, that's a million dollar question.


Image: Pepsi advertisement.on a concorde plane.

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