MARKETING MANAGEMENT PROJECT ON

BY TUSHAR.V.RATHOD SY-BMS

ROLL.NO:22

INDEX

INTRODUCTION

The pharmacy of Caleb Bradham, with a Pepsi dispenser, as portrayed in a New Bern exhibition in the Historical Museum of Bern. Pepsi was first introduced as "Brad's Drink" in New Bern, North Carolina, in 1883 by Caleb Bradham, who made it at his pharmacy where the drink was sold. It was later named Pepsi Cola, possibly due to the digestive enzyme pepsin and kola nuts used in the recipe.[1] Bradham sought to create a fountain drink that was delicious and would aid in digestion and boost energy.[2] In 1903, Bradham moved the bottling of Pepsi-Cola from his drugstore to a rented warehouse. That year, Bradham sold 7,968 gallons of syrup. The next year, Pepsi was sold in six-ounce bottles, and sales increased to 19,848 gallons. In 1909, automobile race pioneer Barney Oldfield was the first celebrity to endorse Pepsi-Cola, describing it as "A bully drink...refreshing, invigorating, a fine bracer before a race." The advertising theme "Delicious and Healthful" was then used over the next two decades.[3] In 1926, Pepsi received its first logo redesign since the original design of 1905. In 1929, the logo was changed again. In 1931, at the depth of the Great Depression, the Pepsi-Cola Company speculating on wildly fluctuating sugar prices as a result of World War I. Assets were entered bankruptcy - in large part due to financial losses incurred by sold and Roy C. Megargel bought the Pepsi trademark.[4] Eight years later, the company went bankrupt again.

Marketing StrategiesPepsi
Marketing strategies of Pepsi Eastern Europe, Mexico, china, Saudi Arabia and India markets have now become the hotspots for Pepsi as the increasing global advertising strategies are escalated. As such, Pepsi now operates in more than 190 countries and with 37% global market share. Pepsi recognizes the need to carefully integrate high standards in various processes of supply chain especially at the retail level. The company strives for excellence specifically for the products or brands as well as packaging, marketing and advertising. The rationale behind this is that customers deserve better quality products and so quality controls are realized in manufacturing and bottling process, packaging and from warehouses to store shelves. Pepsi markets its products on the basis of localization process wherein local bottlers determine which products to pact and sell in their territory based on local consumer demand and other market factors. Pepsi has balance of promotions and communicates through celebrity endorsers as well as on the Internet, newspaper and sponsorships. Finally, Pepsi promotes its brands in supermarkets through keeping discounts an History

Market segmentation
Market segmentation is the process of dividing markets comprising the heterogeneous needs of many consumers into segments comprising the homogeneous needs of smaller groups (Guille M). Segmentation is usually done by demography, geography and socioecto segment consumer market is to use demographic variables such as age, gender and education level. Organizations that operate globally usually segment consumer market geographically. Besides, socioeconomic variables are to segment the market regarding the income, social class and also lifestyle (Guilleonomic variables. The easiest waySoft Drink PepsiCo As we know that PepsiCo provides varieties of beverages such as carbonated soft drinks, sport drinks, dairy-based drinks, energy drinks, fruit flavored beverages, ready-to-drink coffees, ready-to-drink tea, mineral water and frozen beverage. Those products are marketed under brand as Pepsi, Mountain Dew, Gatorade, Lipton, Starbucks, Tropicana, and so on. Why PepsiCo have to produce so many types of products? The reason is relevant to market segmentation. PepsiCo aims to attract different groups of consumers with difference types of products. Demography: Pepsi targets the young people since before until now because most of the teenagers Psychographics: The pepsi campaign attempts to capture the youth of today by focusing on their personality,lifestyle and attitude of youth through the advertisement.

Pepsis target market

Pepsi has aimed itself at a young audience with an age range of teens to mid twenties. With regards to their U.S website, which is ranked the 4th most visited in food consumer products, you can clearly see that from its layout, use of colours and wording that Pepsi is bright, funky and fresh; aimed at forward thinking young men and women. In poor contrast the Pepsi UK website focuses mainly on football and is centred on the Pepsi Max brand. This brand has generally been seen as male due to its colour schemes and also previous advertising campaigns based on high adrenaline sports. Therefore Pepsi Max is less appealing to women and so it the Pepsi UK website. The Pepsi adverts can be seen as targeting a potentially narrow demographic. Most Pepsi adverts today consist of high profile football players advertising their brand. In theory Pepsi are narrowing their target market as football is a sport mainly enjoyed by The Pepsi adverts can be seen as targeting a potentially narrow demographic. Most Pepsi adverts today consist of high profile football players advertising their brand. In theory Pepsi are narrowing their target market as football is a sport mainly enjoyed by men, although its female fan. Pepsi has also had a range of adverts starring various music artists. The target audience for these is much younger compared to their football adverts, however, iconic artists such as Michael Jackson hold univ

Pepsi Marketing Mix

While analysing a company's product, a common fallacy can be focusing on the final outlook of the product and that gives rise to a nave approach. Analysts should consider and analyse all major product decisions that the company may have carried out including quality, features, options, style, brand name, packaging, sizes, after-sales services, warranties, returns, etc. Moreover, the company's position, as well as marketing strategy in the market, can be judged on the basis of its product mix including width, length, depth and consistency (Proctor, 200). Width is the number of lines the firm carries, for example Sony has various lines including TV, video, cameras and laptops. Length is the number of items in the product mix, for example Toshibahas different types of TVs and laptops. Depth is the number of variants of each product offered in the line such as clock radios, car radios and pocket radios. Finally, consistency is how closely related the various product lines are in terms of the use to which
they are put, more commonly including electrical and entertainment products. So, using these bases for product strategy classification will lead to easy and effective analysis. Finally, one should attempt to identify what the company is actually aiming at through its product. There can be three possible product strategies in a company's action (Proctor, 2000). Either it aims the product at the market such as Erickson with new mobile phones to cater for the business class; it can be given a "face lift" such as Marks & Spencer's attempt with more customer-specific products; and it can be withdrawn, discontinued or eliminated such as Marks & Spencer closing down its unprofitable units across the globe. To write a valuable pricing analysis of a company, the key is to correlate its pricing strategy with its product position in the market. The company may use various pricing strategies such as penetration, skimming, competition-based pricing, psychological pricing,...

1.MARKET ING MIX OF PEPSI PepsiCo is one of the world's largest food and beverage companies, with 2007 annual revenues of more than $39 billion. The company employs approximately 185,000 people worldwide, and its products are sold in approximately 200 countries through four P's of the Marketing Mix which are following. 1.PRODUCT 2.PRICE 3.PLACE 4.PROMOTION

1. Product:
I n m a r k e t i n g , a p r o d u c t i s a n yt h i n g t h a t c a n b e o f f e r e d t o a m a r k e t t h a t m i g h t s a t i s f y a w a n t o r n e e d . I t is o f t wo t yp e s : T a ng ib le ( p h ys ic a l) a nd I n t a ng ib le ( no np h ys ica l) . S inc e ser v ice s ha ve bee n a t t he fo r e fr o nt o f a ll mo d e r n ma r k e t ing st r a t e g ie s, so me int a ng ib i l it y ha s be c o me e s se nt ia l p a r t o f ma r k e t ing o ffe r s. I t is t he r e fo r e t he c o mp le t e b u nd le o f be n e fit s o r sa t is fa c t io ns t ha t bu yer s perce ive t he y w ill o bt a in if t he y purc ha se t he p r o d u ct . It is t he su m o f a ll p h ys ic a l, p s yc ho lo g ic a l, symbo lic, and ser vice at t ribut es, no t ju st t he phys ica l me r c h a nd is e . A l l p r o d u c t s o ffe r e d in a ma r k e t c a n be p la c e d be t w e e n T a ng ib le ( P u r e P r o d uc t ) a nd I nt a ng ib le ( P u r e S e r v ic e ) sp e c t r u m.

PEPSI-PRODUCT:
T h e P e p s i - C o l a d r i n k c o nt a i n s b a s i c i n g r e d i e nt s f o u n d i n m o s t o t h e r s i m i l a r d r i n k s i n c l u d i n g c a r bo n a t e d w a t e r , h i g h f r u c t o s e c o r n s yr u p , s u g a r , c o lo r i n g s , p ho s p ho r i c a c i d , c a f f e i n e , c it r i c a c i d a n d n a t u r a l f l a vo r s . T h e c a f f e i n e f r e e P e p s i - C o l a c o nt a i n s t h e s a m e i n g r e d i e nt s b u t no c a f f e i n e . S o m e o f t h e d i f f e r e nt br a n d o f p r o d u c t a r e a s fo l l o w s : 1.aqu a fi na 2.gatorade 3. moun tai n d ew 4.t ropicana t wist er 5. mi rind a. et c

2.PRICE:
IN economics an business,the price is the assigned numerical monetary value of good,services or assets.price is also central to marketing where it is one of the 4th variable in marketing mix. Pricing is a big part of marketing mix. Choosing the right price and the right pricing strategy is crucial to the marketing process. The price of the product is not some thing that is fixed.on the other hand price of the product depends on many other factors.the price may act as a way to attract target customers.

PEPSI-PRICE:
PEPSI desides it price on the basis of competition .the best thing about the company pepsi is that it is very flexible and it can come down with the price very quickly. The company is renowned to bring the price down even up to half if needed.but this risk taking attitude has also earned pepsi losses.though lowering the price would attract the customers but it would not help them cover up the cost incurred in production hence causing them losses. This was the situation earlier but now pepsi is fullfledged and growing company.it has covered all its losses and is now growing at the rapid rate.

3.PLACE:
Pl a c e i s a te r m t h a t h a s a v a r i e t y of me a n i n g s in a di cti onary sense, but whi ch i s pri nci pall y used i n a geographic sense as a noun to denote location, though in a sense of a l ocati on i denti fi ed wi th that whi ch i s l ocated there. I n ma r k e t i n g , pl a c e r ef e r s t o o n e of t h e 4 P' s , d e f i n e d a s " t h e ma r k e t p l a c e " . I t ca n me a n a geographic location, an industry, a group of people ( a s e g me n t ) t o wh o m a c o mp a n y wa n t s t o s e ll i t s products or servi ces, such as young professional wo me n ( e . g . f o r s e lli n g c o s me t i c s ) o r mi d d l e - a g e d f a mi l y me n ( e . g . f o r s e lli n g f a mi l y c a r s )

PEPSI-PLACE:
Pepsi has spread all over worl dwi de.pepsi when e n t e r in g a n e w ma r k e t d o e s n o t g o i n al o n e b ut i t l o o k s f o r pa r t n e r s an d me r g e r s . t i ll n o w p e p s i h a s c o ll a b o r a te d wi t h c o mp a n y l i k e q u ak e r o a t s , f ri t o lays,lipton,starbucks.etc. Pepsi li ke coke has spread all over the worl d .i t i s b e c a u s e o f t hi s wo r l d wi d e s p r e a d no w i t i s c o mi n g u p wi t h a d v e r t i s e me n t s wh i c h c a n b e b r o a d c a s t e d i n t h e d i f f e r en t n a ti o n i n t h e wo r l d . th e r ec e n t e xa mp l e wo u l d b e t h e p e p si a d v e r ti s e me n t h a v i n g d a vi d b e c k h a m a s i t b r a n d a mb a s s a d o r .

4. PROMOTION : Pr o mo t i o n i s o ne o f t h e f o ur a s p e c ts o f ma r k e t i n g . Pr o mo t i o n c o mp r i s e s f o u r s u b c a t e go ri e s : 1. Adverti si ng 2. Personal selling 3 . Sa l e s p r o mo t i o n 4. Publicity and public relations The speci fi cati on of these four variabl es creates a p r o mo t i o n a l mi x o r p r o mo t i o n a l pl an . A p r o mo t i o n a l mi x s p e c i f i e s h o w mu c h a t t e n t i o n to p a y t o e a c h o f t h e f o u r s u b c a t e g or ie s , a n d h o w mu c h mo n e y t o b u d g e t f o r e a c h . A p r o mo t i o n al pl an c a n h a v e a wi d e range of objecti ves, i ncl udi ng: sal es i ncreases, new product acceptance, creation of brand equity, p o s i ti o ni n g , c o mp e t i t i v e r e t ali a ti o ns , o r c r e a ti o n o f a c o r p o r a t e i ma g e . PEPSI-PRO MOT ION: PEPSI is very famous for their promotion.pepsi first started with the blind taste tests known as the pepsi challenge.at malls, shoping centers and other public location ,a pepsi representatives set up a table with two blank cup,1 containig pepsi an 1 with coke.shoppers are encouraged to taste both the colas an then select which drinks they prefers.then if pepsi is reveled the shoppers are given a small price.the implication is that pepsi taste better then coke. Now a days pepsi has come up with another campaign known as youngistan , and the other is ye dil mange more. Also AD-campaign are put up on the television by pepsi.mainly pepsi is the company sponsoring most cricket telecasts,happening in india and spents most of its revenue in this field.a list of celebreties are the brand ambassadors for pepsi.

SWOT ANALYSIS OF PEPSI Strength:

Pepsi has a broader product line and outstanding reputation. Merger of Quaker Oats produced synergy across the board. Record revenues and increasing market share. Lack of capital constraints (availability of large free cash flow). o Great brands, strong distribution, innovative capabilities o Number one maker of snacks, such as corn chips and potato chips PepsiCo sells three products through the same distribution channel. For example, combining the production capabilities of Pepsi, Gatorade and Tropicana is a big opportunity to reduce costs, improve efficiency and smooth out the impact of seasonal fluctuations in demand for particular product.

Weakness:
Pepsi hard to inspire vision and direction for large global company. Not all PepsiCo products bear the company name PepsiCo is far away from leader Coca-cola in the international market - demand is highly elastic.

Opportunity:
Food division should expand internationally Noncarbonated

drinks are the fastest-growing part of the industry There are increasing trend toward healthy foods Focus on most important customer trend - "Convenience".

Threats:
F&B industry is mature Pepsi is blamed for pesticide residues in their products in one of their most promising emerging market e.g in India Over 50 percent of the company's sales come from FritoLay; this is a threat if the market takes a downturn PepsiCo now competes with Cadbury Schweppes, CocaCola, and Kraft foods (because of broader product line) which are well-run and financially sound competitors. Size of company will demand a varied marketing program; Social, cultural, economic, political and governmental constrains. Strategies: The purpose of the strategy is to increase the EPS by 15% per annum and increase PepsiCo's stock price. There are two ways to increase the EPS, first is to increase the income and second to decrease the amount of stocks outstanding. To increase the income, there are...

POSITIONING OF PEPSI IN MARKET BEVERAGES

SOFT DRINKS: PEPSI COLA LOCAL DRINKS: MACCA COLA ,AMRUT COLA , JUICES: PULPY NESTLE FRUITO, ENERGY DRINKS: RED BULL COTT.

STRATEGIC POSITION OF PEPSI 1.COMPETITIVE ADVANTAGE:

Brand recognition Large market share Wide distribution channel Customer loyalty. 2.FINANCIAL STRENGTH : Inventory turnover Returns on asset Net income 3.INDUSTRIAL STRENGTH : 4.environment stability High industry growth rate Profit potential Financial stability Resource utilization. economic stability barrier to entry competitive preasure.

BRAND IMAGE
Brand image means the image of a particular brand in market and in eyes of people. Brand image decides the popularity of a brand in market. A brand having good brand image is considered more popular than a brand with low image. There are three components to a brand image : attributes, consequences and brand personality. It is perhaps more inclusive to think of a brands image as encompassing all the associates that a consumer has for that brand : all the thoughts, feelings and imagery-even colors, sounds and smells - that are mentally liked to that brand in the consumers memory.

BRAND IMAGE OF PEPSI

y Pepsi is the brand that every youngster relates to. But this definitely doesnt mean that other age group are not its users .
y

Thus pepsis brand image is its HIP, COOL ,LIVELY, and REFRESHING ATTITUDE

RECOMMADATION AN SUGGESTION FOR PEPSI : y y Aggressive responses an aggressive strategy, Market penetration in term to increase its market share through tie up with different restaurants& clubs. or continue withas incres its share through huge advertisement an sponsoring different event.

BIBLOGRAPHY

WWW.AUTHORSTREAM.COM

WWW.SCRIBD.COM
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WWW.OPPAPERS.COM

WWW.PEPSI.COM

WIKIPEDIA

WWW.GOOGLE.COM