The 2-litre pack is Pepsi's second major millennium initiative after `Change the Century' promotional campaign, which ended on November 20, 1999. According to P M Sinha, chairman, Pepsi India Holdings: ``This pack is our salute to the year 2000 and the celebrations that will welcome it.''

The new 2-litre pack is being made available at an introductory price of Rs 45. ``In fact for an additional Rs 5, the consumer is getting 500 ml more over the existing 1.5 litre pack which costs Rs 40,'' says Shashi K Kalathil, executive vice-president, marketing, Pepsi Foods Ltd. ``As you upsize in pack and you are able to give better economies, eventually the consumption will grow.'' Beginning with Mumbai, the 2-litre packs would soon be rolled out in Delhi, Chennai, Bangalore, Hyderabad and Goa. Metros account for around three-fourth of Pet volume sales, and Goa is expected to receive major millennium traffic.

The initial investment per Pet line in each Pepsi plant is estimated at Rs 1.5 crore. Initially, the 2-litre pet packs would be bottled at the company-owned plants in Mumbai and Bangalore and gradually at all its nine plants, including company-owned plants in Bazpur (UP) and Calcutta; and also at franchised plants: one each in Jaipur, Kosi (UP), Panipat, Nagpur and Guntur. Pet bottles account for around 15 per cent of Pepsi brand volume sales.

Pepsi expects that the value proposition of the bigger pack-convenience, economy and brand pack innovation-will expand the market. According to a Pepsi study, in the last four years there has been rapid growth in the soft drinks consumption at home. ``The market is expanding broadly from impulse-buying to occasion-led buying (like parties) to consumption through home-refrigeration,'' says Kalathil. ``We are making aggressive investment to grow the home consumption segment.'' Pepsi has no plans to phase out 1.5 litre pack from the markets - this pack exists only in the Indian market.

The media plan-handled by HTA-for the new pack, includes PoP collaterals and TVC. Says Kalathil, ``We will have major presence in the media during December and January as we roll out a series of millennium activities.''The new TVC for 2-litre pack steers away from celebrity promotions and focuses on the pack itself. Beginning with a series of 5-seconders, which will gradually develop into longer durations, Pepsi plans to run over a dozen spots everyday. This would be complemented by the current brand campaigns in multi-channels. Pepsi also plans to kick off a major campaign in February with the forthcoming Pepsi South-Africa India Cricket series.With the launch of this pack Pepsi also expects to beat the sluggish winter sales, which average around 3 per cent of oveall Pepsi sales.

Earlier this year, Pepsi introduced two other pack innovations: Diet Pepsi in cans, and 500 ml Pet Pepsi-on-the-go bottles. Pepsi is also available in 330 ml cans, returnable glass bottles in 200 ml, 300 ml, 500 ml, and 1-litre, and Fountain Pepsi in 250 ml, 300 ml and 450 ml.