PepsiCo, the world’s largest snack-food maker is going to invest 330 million rupees with its partners in India by 2020. The chief executive states that “India is a country huge potential” and that they aim to increase their product range sold in India. This enormous investment will both benefit PepsiCo and India, with a future forecast of creating over 100,000 jobs to the Indian economy. India is already a rapid growing economy and therefore the decrease in unemployment rates in India will further boost their economy.

This will also aid PepsiCo as India has a very high rate of unemployment and therefore the labour market will have a lower wage rate. Therefore, PepsiCo will benefit from low labour costs and economies of scale as well as gaining new customers in untapped market stating that they will focus on rural areas of India. “We’ve only scratched the surface of the long-term growth opportunities that exist for PepsiCo and our partners.”  The U.S. company, which opened its first operations in India in 1990, also is going to start to recruit Bollywood actors as brand ambassadors to get a greater share of India’s snack market.

http://www.bbc.co.uk/news/business-24898994

PepsiCO Marketing Campaign with Indian Actress