Understanding CSR of Pepsico India

By: Dhruv Malik, Indian Institute of Mass Communication

(Advertising & Public Relations)

An in-depth primary and secondary research on Pepsico revealed the CSR activities and the

guidelines followed by the company:

1. Care for customers, consumers are the world we live in

2. Sell only products we can be proud of

3. Speak with truth and candor

4. Balance the short term and long term

5. Win with diversity and inclusion

6. Respect and succeed together

The various CSR activities undertaken by Pepsico are as follows:

1. Water Conservation- replenish the world’s most precious asset - Water

a). Zero Water Discharge: It has adopted processes to treat process water before returning it to non-potable water uses. Water is thus being reused reducing  any discharge

b). Community Watershed Management Programs: Pepsi Co India partnered with The Energy and Resources Institute (TERI) to rejuvenate local water bodies. Villages in Neelamangala,Karnataka and around Dehradun and Mukteswar in Uttaranchal and currently recharges 300 million liters of water every year.

c). Rain Water Harvesting: Common in all Indian Pepsi Co plants, this enables maintaining and strengthening water reserves in the surrounding areas like Jainpur, Bazpur, Bharuch, Palakkad, Panipat and Neelamangala .

2. Solid Waste Management- A separate program to treat the solid waste in the most suitable and eco-friendly way through the  Exnora Waste to Wealth program.The company’s partnership with the NGO, Exnora continues to provide clean environment to more than than 450000 people across Pammal, Chennai, Nagapattinam, Tenkasi and Cuddalore in Tamil Nadu, Sangareddy in Andhra Pradesh and Panipat, Haryana

3. Agricultural Development- Working for the farmers with the farmers, Pepsi Co’s partnership with farmers, the high seed quality program and the citrus project were undertaken by Pepsico to:

a). Help farmers improve yield and income

b). Introduce new high yielding varieties of Potato, Oats, Citrus and others

c). Introduce sustainable farming methods and contract farming

d). Work closely with farmers and state governments to improve agricultural sustainability, crop diversification and enhance farmer incomes.

e). Facilitate FINANCIAL and insurance services so as to de-risk farming.

4. Health and Lifestyle- It contributes towards teaching the young children about the sensible eating habits by launching the Get Active & a Good Nutrition and Active Lifestyle Program for Children. The objectives of which were as follows:

a). To raise awareness on the importance of balanced nutrition and regular physical activity for a HEALTHY lifestyle among school children

b). Starting with a Breakfast Makes Me Smart module in 2008 emphasized the importance of HEALTHY breakfast and the My Pyramid module of 2009 laid stress on learning nutrition through active engagement

c). This initiative made many young children opt for healthier breakfast options, PepsiCo through this also promoted their Quaker Oats

5. Other initiatives include the collaboration with the Indian Labour organisation to fight against Aids. The Akshay Parta partnership to support the mid-day meal and the employee volunteer programme run by the Saalam Balak trust

6. Pepsico also organised the 6th Business Responsibility Summit 2014 Themed: “Business as Partners in India's Development”

7. Pepsico is also known to run Human and environment sustainability programs such as:

a). Quality of Food- The company is dedicated towards making the best quality food which obeys the ISO regulations laid down by the Government.

b). Genetically Modified Foods- The company’s Food Safety and Regulatory Affairs Department along with other suppliers ensure that proper Government seal has been applied to the GMOs

c).  Packaging- The foods are packaged in the most appropriate manner keeping in mind all the dos and don’ts laid down by the Government

d). Marketing- Pepsi-co is helping the Government in creating awareness about some basic issues like sensible eating habits while promoting its foods and beverages, trying to keep the young children aloof from them

e). Sustainable Agricultural Policy- Pepsi-co has developed and published Global Sustainable Agricultural Policy which entails regulations on water savings, waste reuse, soil protection and chemical use.

f). Sustainable Packaging Council- It is a multidisciplinary team team, comprising of members from R&D, Innovation, Procurement, Sales & Marketing and Public Policy groups.  They develop strategies for proper and responsible disposal

In conclusion CSR analysis of the competition of Pepsico was also conducted and it was concluded that today Companies practicing Corporate Social Responsibility need not be altruistic to be effective. The companies like PepsiCo and Coca-Cola invest in projects like water treatment facilities and a zero waste footprint for their products because it helps them reduce their resource use, which in turn helps them become sustainable and achieve higher profits The firm of the future is expected to have undergone significant transformation such that CSR no longer becomes managed as a separate deliverable, but is part of the experience of being an employee in an organization that lives its values.

Pros and Cons of FDI in the Defence Sector

By: Dhruv Malik Indian Institute of Mass Communication

(Advertising & Public Relations)

Pros of 49% FDI in Defence

• Reduce imports, improve country’s capacity to produce defense equipment locally

• Higher employment and training opportunities due to set up of more production plants in India

• Globally competitive equipment made

• Positive approach in terms of exporting the same equipment to other countries and utilizing this foreign technology for production of equipment for other companies

• No threats to internal security in a country which is prone to terrorism

• Intellectual property rights remain with India till it has a 51% share

• Better technological know-how of defense equipment production thus producing higher returns for the Indian companies

• Controlling rights of the Joint Venture in Indian hands as the Managing Director and the CEO will be of the Indian Company

• India is already burdened with the 74% cap in defence sector, so 49% FDI will ease the financial pressure, thus the capital saved can be utilized in other sector

Cons of 49% FDI

• Low enthusiasm of the foreign players as they do not have the controlling stake and hence do not  have the incentives to bring modern technology into India

• The 49% cap still does not alleviate the concerns about loss of Intellectual Property rights

• India may still remain the largest defense equipment importer if the technological know-how is not increased (approx. INR 40,000 crores in 2013)

• Equipment manufactured domestically still have majority parts imported from foreign countries

• India despite being the largest importer of defense equipment in the world has its manufacturing capacities at a nascent stage

Tools Suggested to Overcome the Problems Due to FDI:

• Guidelines of the Department of Industrial Policy and Promotion should be followed; 74% FDI in case of technology transfer and 100% in state of the art technology in a case to case manner- Lobbying to get more foreign companies to invest in India

• Taking inspiration from DRDO and ISRO in India and the technological advancements they have done in making the mission to Mars successful and the Agni 1 and Agni 2 and the very famous Brahmos via in house research

• The international companies that have advanced technologies should collaborate with Indian companies to form Joint Ventures for Research and Development in India, to make products suitable for all markets thus resulting in benefit for India as well as royalty for the international companies

•  Lobbying to get the government and international companies to agree on a Joint Venture for Research and Development in the Defense Sector

• Lobbying to get OEMs(Original Equipment Manufacturers) to come into India and further get their suppliers to set up JVs with Indian companies, through this the Indian companies will benefit as they now become a part of the supply chain

• Formation of a joint force committee with all the Indian manufactures coming together to put pressure on the government

Digital Corporate Communication for Improvement of the Image of Microsoft

By: Dhruv Malik Indian Institute of Mass Communication
(Advertising & Public Relations)

1. While designing a corporate communication strategy it is imperative to understand the opinion of the public and correlate it with facts, this guides us to know if an actual gap exists between the public opinion and what the organisation stands for.

2. A dipstick survey done found that public opinion was very different than what Microsoft stands for so an analysis was done and the recommendations were made.

3. Microsoft should use its image of a “Black suited corporate” and communicate with the external audience by a human touch.

4. Simplicity should be there in the communication of Microsoft and more of visuals should be used.

5. The brand communication should be reduced and the future should be talked about more. Microsoft should be showcased as a company doing magical things for India.

6. It should follow the Former Information First Out (FIFO) algorithm for the stakeholders that visit the website.

7. An instant connect should be made with the potential developers and the potential employees of various social platforms.

8. Questions that are the most basic and highly advanced should be answered by Microsoft on portals such as stack overflow, this would actually help the communication of Microsoft to humanize and help Microsoft build relationships.

9. Externalize the internal and internalize the external, an environment of trust and free flowing communication should be created.

10. Microsoft should sell its story to all its stakeholders. Everybody likes Microsoft but does not know much about it. Even though a late to the party , Microsoft can make a difference only if it humanizes itself.

Starbucks

Brand Definition of Starbucks:

Starbucks is a high end international coffee brand for the affluent ones, which is dedicated to providing an experience through a delightful ambience and a palatable but overpriced menu. It is struggling to strike a chord with the Indian consumer due to lack of coffee drinking culture and an elusive hyped image.

Marketing objectives:                                     

Redefine the positioning and image of Starbucks by focusing on the services thereby increasing the TOMA in the premium international coffee segment in India while sustaining the aspirational image of the brand.

Role of Advertising:

To make the consumer believe in his mind that Starbucks is the only value for money premium coffee brand and make it an ‘escapade’ for the affluent customer

Competition:

Micro Competitors:

CCD: It is positioned as the cheap Indian coffee hangout suited for the young economical pallet

Barista: It is positioned as the international coffee brand that is classy and has lost its charm

The Coffee Bean and Tea Leaf: it is positioned as an outlet that targets both  coffee and tea drinkers

Costa Coffee: The international premium quality coffee brand that is reliable and mature

Macro Competitors

Mc Donalds: The quick service restaurant that suits the immediate need for a coffee on the go

Dunkin Donuts: Positioned as the all-day hang out café for the urban young

Target Consumer:

The target audience are status conscious and socially active individuals who want the best in what they pay for and look forward to feel special. They always wish to associate with something that makes them feel important, they look for the coffee drinking experience that they can work and socialize in.

Current positioning of Starbucks:

Starbucks is the aspirational premium coffee brand, the hyped and slightly over-priced multinational coffee brand for the Indian market.

Proposed positioning:

To become the premium performance oriented aspirational coffee brand which fulfills expectations of an international coffee brand, thereby becoming the classy foreigner who satisfies the target consumers

The Button for the communication strategy:

Starbucks makes you experience a surreal escapade each time you visit

Key Supports for the button:

The consumer can experience an escape into the delectable aroma of Robusta coffee beans creating an irresistible craving for the same. After becoming the performance oriented brand the current coffee drinking experience more memorable at Starbucks. More comfortable seats will be provided so that the consumer stays for a longer duration of time. The consumer will then fall in love with this foreigner that he currently has a fling with.