Abstract

The case explains how and why PepsiCo developed Value Foods Organization (VFO). It discusses the new distribution channel of VFO. It illustrates how PepsiCo developed a new growth engine for the Indian market and discusses the challenges that VFO could face and the advantages that it could enjoy.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Discuss the rationale for the formation of VFO as a different entity from PepsiCo.
• Understand and discuss the distribution channel of VFO.
• Understand the challenges faced by VFO’s distribution in comparison with PepsiCo’s distribution.

Keywords

PepsiCo, Value Products Organization (VFO), Distribution channel, Cost, Strategy, Targeting, Snacks, Distributor, Business environment, Value products, Channel partners, Mass market, Emerging market