Pepsi Forays into Apparel and Fashion Business in India | Marketing Management Case Studies

Details

Case Code : CLMM052
Publication date : 2009
Subject : Marketing Management
Industry : Consumer Packaged Goods
Length : 03 Pages
Price : Rs. 100

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Key words:

Licensing, brand licensing, merchandising, licensee, fashion business, apparel, Pepsi, logo, Foreign Investment Promotion Board, License India, Bradford Licensing Associates, joint venture

Note

1: This caselet is intended for use only in class discussions.
2: More comprehensive case studies are priced at Rs.200 to Rs.700 (US $5 to US $16) per copy.

Abstract:

In September 2009, beverage giant, PepsiCo announced its foray into the apparel and fashion business in India. The company collaborated with License India to identify opportunities to retail its merchandise in the Indian retail market. Analysts felt that it was logical for PepsiCo to launch its licensing and merchandising program in India considering the enormous potential offered by the Indian retail industry. Through its merchandise program, PepsiCo planned to reach sales of US$ 568 million globally by 2010.

Issues:

» Brand licensing
» Merchandising

Introduction

In September 2009, PepsiCo, the New York-based beverage and snacks company, announced its foray into the apparel and fashion business in India. The foray marked the extension of its global licensing and merchandising program in India. Commenting on its entry into the apparel and fashion business in India, Sally Barnes (Barnes), head, Pepsi Licensing Program in India, said, “Pepsi is an iconic brand that associates strongly with the Indian youth. It can easily be extended as a lifestyle fashion brand.”...

Questions for Discussion:

1. Discuss the rationale behind PepsiCo's foray into the apparel and fashion business in India.

2. Do you think PepsiCo will be able to tap the opportunities offered by the Indian retail industry with its apparel and fashion business? Also, comment on how you think the company will fare in the intensely competitive Indian retail market.