Monday, January 11, 2010

PepsiCo is going to invest more money in India

PepsiCo is the company that brings out the popular soft drink Pepsi. In India, Pepsi is a very familiar brand name because very famous celebrities like Shah Rukh Khan and Sachin Tendulkar used to do the advertisement of this company in the past. In fact, in the last one decade, most of the time we saw that Pepsi had leading Bollywood and cricket celebrities to promote their product. So, it is very nice that PepsiCo is going to invest nearly 200 million dollar in Indian market.
It comes as a strategy to expand the company’s revenue in the markets outside of USA. In USA, the company is now facing two kinds of problems. There is not a lot of rooms for growth as most people already drink soft drinks. On the other hand, the cost of materials for producing drinks like Pepsi is increasing. I think that there will be another problem in near future in USA market. In USA, at this moment many people are suffering from over weight and obesity and soft drinks are considered to be one of the major reasons behind it.
On the other hand, thanks to Bollywood and cricket celebrities, drinking Pepsi is considered to be a cool thing among many young people. Thus, I think that the Pepsi is doing right investment in the right place. 

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