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VIDYA PRASARAK MANDAL, THANE

K. G. JOSHI COLLEGE OF ARTS &


N. G. BEDEKAR COLLEGE OF COMMERCE

CERTIFICATE
OF
PROJECT WORK

This is certify that


Mr. / Ms.

_______________________________________________
Of

M.Com. (BUSINESS MANAGEMENT ) Part.: ____ Semester


:_____ Roll No. : _____ has undertaken & completed
the project work titled

___________________

______________________________ during the academic year


__________
under the guidance of Mr. / Ms.
___________________________________
Submitted on _____________ to this college in
fulfillment of

the curriculum of

MASTER OF

COMMERCE ( BUSINESS MANAGEMENT )


UNIVERSITY OF MUMBAI .

This is a bonafide project work & the information


presented is True & original to the best of our
knowledge and belief .

PROJECT GUIDE

EXTERNAL EXAMINER

ACKNOWLEDGEMENT

It gives me great pleasure to declare that my project on INTEGRATED MARKETING


COMMUNICATION [IMC] IN PEPSI have been prepared purely from the point of view
of students requirements.
This project covers all the information pertaining to INTEGRATED MARKETING
COMMUNICATION [IMC] IN PEPSI. I had tried my best to write project in simple and
lucid manner. I have tried to avoid unnecessary discussions and details. At the same time it
provides all the necessary information. I feel that it would be of immense help to the
students as well as all others referring in updating their knowledge.
I am indebted to our principal Dr. Mrs. Shakuntala A. Singh Madam for giving us such an
awesome opportunity. I am also thankful to our coordinator Mr. D.M. Murdeshwar Sir and
also librarian and my colleagues for their valuable support, co-operation and encouragement
in completing my project.

Special thanks to Prof. S.N.CHITALE my internal guide for this project for giving me
expert guidance, full support and encouragement in completing my project successfully.
I take this opportunity to thanks my parents for giving guidance and for their patience and
understanding me while I am busy with my project work.
Lastly I am thankful to God for giving me strength, spirit and also his blessings for
completing my project successfully.

INDEX

SR

CONTENTS

PAG

O.

NO.

1.

INTRODUCTION

2.

COMPONENTS OF IMC

3.

THE SHIFT FROM FRAGMENTED TO IMC

4.

TOOLS OF IMC & ITS BENEFITS

5.

PEPSI COMPANY PROFILE

6.
7.
8.
9.
10.

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12
13
14

CONCLUSION

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BIBLIOGRAPHY

Introduction

Integrated marketing communications (IMC) is an approach used by


organizations to brand and coordinate their communication efforts. The
American Association of Advertising Agencies defines IMC as "a
comprehensive plan that evaluates the strategic roles of a variety of
communication disciplines and combines these disciplines to provide clarity,
consistency and maximum communication impact. " The primary idea behind
an IMC strategy is to create a seamless experience for consumers across
different aspects of the marketing mix. The brand's core image and messaging
are reinforced as each marketing communication channel works together as
parts of a unified whole rather than in isolation.

An approach to achieving the objectives of a marketing campaign, through a


well coordinated use of different promotional methods that are intended to
reinforce each other.
As defined by the American Association of Advertising Agencies, integrated
marketing communications " ... recognizes the value of a comprehensive plan
that evaluates the strategic roles of a variety of communication disciplines
advertising, public relations, personal selling, and sales promotion and
combines them to provide clarity, consistency, and maximum communication
impact."

Integrated Marketing Communication (IMC) is the application of consistent


brand messaging across both traditional and non-traditional marketing channels
and using different promotional methods to reinforce each other.
It is essential for organizations to promote their brands well among the endusers not only to outshine competitors but also survive in the long run. Brand
promotion increases awareness of products and services and eventually
increases their sales, yielding high profits and revenue for the organization.
To understand integrated marketing communication, let us first understand what
does brand communication mean?
Brand communication is an initiative taken by organizations to make their
products and services popular among the end-users. Brand communication
goes a long way in promoting products and services among target consumers.
The process involves identifying individuals who are best suited to the purchase
of products or services (also called target consumers) and promoting the brand

among them through any one of the following means:


Advertising
Sales Promotion
Public Relation
Direct Marketing
Personal Selling
Social media, and so on
Integrated Marketing Communication - Let us now understand what does
integrated marketing communication mean?

Integrated marketing communication refers to integrating all the methods


of brand promotion to promote a particular product or service among
target customers. In integrated marketing communication, all aspects of
marketing communication work together for increased sales and maximum cost
effectiveness.

Various components of Integrated Marketing Communication:


1. The Foundation - As the name suggests, foundation stage involves
detailed analysis of both the product as well as target market. It is
essential for marketers to understand the brand, its offerings and endusers. You need to know the needs, attitudes and expectations of the
target customers. Keep a close watch on competitors activities.

2. The Corporate Culture - The features of products and services ought to


be in line with the work culture of the organization. Every organization
has a vision and its important for the marketers to keep in mind the same
before designing products and services. Let us understand it with the help
of an example.
Organization As vision is to promote green and clean world. Naturally its
products need to be eco friendly and biodegradable, in lines with the
vision of the organization.

3. Brand Focus - Brand Focus represents the corporate identity of the


brand.

4. Consumer Experience - Marketers need to focus on consumer


experience which refers to what the customers feel about the product. A
consumer is likely to pick up a product which has good packaging and
looks attractive. Products need to meet and exceed customer expectations.

5. Communication Tools - Communication tools include various modes of


promoting a particular brand such as advertising, direct selling,
promoting through social media such as facebook, twitter, orkut and so
on.

6. Promotional Tools - Brands are promoted through various promotional


tools such as trade promotions, personal selling and so on. Organizations
need to strengthen their relationship with customers and external clients.

7. Integration Tools - Organizations need to keep a regular track on


customer feedbacks and reviews. You need to have specific software like
customer relationship management (CRM) which helps in measuring the
effectiveness of various integrated marketing communications tools.
Integrated marketing communication enables all aspects of marketing mix to
work together in harmony to promote a particular product or service effectively
among end-users

The Shift from Fragmented to Integrated Marketing


Communications
Prior to the emergence of integrated marketing communications during the
1990s, mass communicationsthe practice of relaying information to large
segments of the population through television, radio, and other media
dominated marketing. Marketing was a one-way feed. Advertisers broadcasted
their offerings and value propositions with little regard for the diverse needs,
tastes, and values of consumers.
Often, this "one size fits all" approach was costly and uninformative due to the
lack of tools for measuring results in terms of sales. But as methods for

collecting and analyzing consumer data through single-source technology such


as store scanners improved, marketers were increasingly able to correlate
promotional activities with consumer purchasing patterns. Companies also
began to downsize their operations and expand marketing tasks within their
organizations. Advertising agencies were also expected to understand and
provide all marketing functions, not just advertising, for their clients.
Today, corporate marketing budgets are allocated toward trade promotions,
consumer promotions, branding, public relations, and advertising. The
allocation of communication budgets away from mass media and traditional
advertising has raised the importance of IMC importance for effective
marketing. Now, marketing is viewed more as a two-way conversation between
marketers and consumers. This transition in the advertising and media industries
can be summarized by the following market trends:

a shift from mass media advertising to multiple forms of communication


the growing popularity of more specialized (niche) media, which considers
individualized patterns of consumption and increased segmentation of consumer
tastes and preferences the move from a manufacturer-dominated market to a
retailer-dominated, consumer-controlled market the growing use of data-based
marketing as opposed to general-focus advertising and marketing greater
business accountability, particularly in advertising performance-based
compensation within organizations, which helps increase sales and benefits in
companies unlimited Internet access and greater online availability of goods and
services a larger focus on developing marketing communications activities that
produce value for target audiences while increasing benefits and reducing costs

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The Tools of Integrated Marketing Communications


The IMC process generally begins with an integrated marketing
communications plan that describes the different types of marketing,
advertising, and sales tools that will be used during campaigns. These are
largely promotional tools, which include everything from search engine
optimization (SEO) tactics and banner advertisements to webinars and blogs.
Traditional marketing communication elements such as newspapers, billboards,
and magazines may also be used to inform and persuade consumers. Marketers
must also decide on the appropriate combination of traditional and digital
communications for their target audience to build a strong brand-consumer
relationship. Regardless of the brand's promotional mix, it is important that

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marketers ensure their messaging is consistent and credible across all


communication channels.

Benefits of Integrated Marketing Communications


With so many products and services to choose from, consumers are often
overwhelmed by the vast number of advertisements flooding both online
and offline communication channels. Marketing messages run the risk of
being overlooked and ignored if they are not relevant to consumers' needs
and wants.
One of the major benefits of integrated marketing communications is that
marketers can clearly and effectively communicate their brand's story and
messaging across several communication channels to create brand
awareness. IMC is also more cost-effective than mass media since
consumers are likely to interact with brands across various forums and
digital interfaces. As consumers spend more time on computers and

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mobile devices, marketers seek to weave together multiple exposures to


their brands using different touch points. Companies can then view the
performance of their communication tactics as a whole instead of as
fragmented pieces.
The other benefit of integrated marketing communications is that it
creates a competitive advantage for companies looking to boost their
sales and profits. This is especially useful for small- or mid-sized firms
with limited staff and marketing budgets. IMC immerses customers in
communications and helps them move through the various stages of the
buying process. The organization simultaneously consolidates its image,
develops a dialogue, and nurtures its relationship with customers
throughout the exchange. IMC can be instrumental in creating a seamless
purchasing experience that spurs customers to become loyal, lifelong
customers.

COMPANY PROFILE
PepsiCo entered India in 1989 and has grown to become the countrys largest
selling food and Beverage Company. One of the largest multinational investors

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in the country, PepsiCo has established a business which aims to serve the long
term dynamic needs of consumers in India.
PepsiCo India provides direct and indirect employment to 150,000 people
including suppliers and distributors.
PepsiCo nourishes consumers with a range of products from treats to healthy
eats that deliver joy as well as nutrition and always, good taste. PepsiCo Indias
expansive portfolio includes iconic refreshment beverages Pepsi, 7 UP, Mirinda
and Mountain Dew, in addition to low calorie options such as Diet Pepsi,
hydrating and nutritional beverages such as Aquafina drinking water, isotonic
sports drinks - Gatorade, Tropicana 100% fruit juices, and juice based drinks
Tropicana Nectars, Tropicana Twister and Slice, non-carbonated beverage and a
new innovation Nimbooz by 7Up. Local brands Lehar Evervess Soda, Dukes
Lemonade and Mangola add to the diverse range of brands.
PepsiCos foods company, Frito-Lay, is the leader in the branded salty snack
market and all Frito Lay products are free of trans-fat and MSG. It manufactures
Lays Potato Chips, Cheetos extruded snacks, Uncle Chipps and traditional
snacks under the Kurkure and Lehar brands and the recently launched Aliva
savoury crackers. The companys high fibre breakfast cereal, Quaker Oats, and
low fat and roasted snack options enhance the healthful choices available to
consumers. Frito Lays core products, Lays, Kurkure, Uncle Chipps and
Cheetos are cooked in Rice Bran Oil to significantly reduce saturated fats and
all of its products contain voluntary nutritional labeling on their packets.
The group has built an expansive beverage and foods business. To support its
operations, PepsiCo has 36 bottling plants in India, of which 13 are company
owned and 23 are franchisee owned. In addition to this, PepsiCos Frito Lay
foods division has 3 state-of-the-art plants. PepsiCos business is based on its

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sustainability vision of making tomorrow better than today. PepsiCos


commitment to living by this vision every day is visible in its contribution to the
country, consumers and farmers.

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Mission and Vision

PepsiCo Indias Mission


"To be the world's premier consumer products company focussed on
convenience food and beverages. We seek to produce healthy financial rewards
to investors as we provide opportunities for growth and enrichment to our
employees, our business partners and the communities in which we operate.
And in everything we do, we strive for honesty, fairness and integrity."

PepsiCo Indias Vision


"To build Indias leading total beverage company, delighting consumers by best
meeting their everyday beverage needs, and stakeholders, by delivering
performance with purpose, through our talented people."

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Competitors Analysis

Major Competitors

CCI Communication Strategies

Localization in communication to target rural market


Establish connect between Coke and enjoying life.
Life ho toh Aisi !!

Coca Cola Enjoy

Try to impress upon consumer mind by targeting ego !


Yaaran da Tashan !
Advertising for all brand packs done in a balanced manner.
Intensive use of Celebrities for both on-air and off-air Campaigns.
Trying to position coke as a generic term for carbonated beverage.
Thanda matlab coca cola !!

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Market Communication Mediums of COKE


Promotional activities.
Celebrity endorsements and brand ambassadors.
Advertisements.
Hoardings
Opportunity Analysis
Water Shortage and Health Awareness Driving Bottled Water Consumption
in India. The Indian packaged water business is estimated at around Rs
2,500 crore with a growth rate of close to 35 per cent. While India ranks
in the top 10 largest bottled water consumers in the world, its per capita per
annum consumption of bottled water is estimated to be five litres which is
comparatively lower than the global average of 24 litres. Today it is one of
India's fastest growing industrial sectors. Between 1999 and 2005, the
Indian bottled water market grew at a compound annual growth rate
(CAGR) of 25 per cent - the highest in the world. The study, conducted by
the US-based Earth Policy Institute, says the global consumption of bottled
water has grown by 57 per cent over the past five years.
Changing health consciousness attitude derives an opportunity for cocacola to introduce more of non-carbonated beverages. The market share of
non carbonated drinks is expanding at a fast pace and world leading
beverage company can come up with health drinks to tap the new
segment.
Rural Markets are still to be explored.

Segmentation Targeting & Promotion

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Segmentation
The market has being segmented by pepsi on the following grounds. Pepsi
Co have adopted different marketing strategy for rural and urban areas.
Age
India is considered to be a young country i.e. average age of Indian population
is less 38years. Thus targeting young generation can be a
beneficial marketing strategy for soft drink companies. In fact this is the case,
all the major brands like Pepsi, coca cola, and thumps up, mainly target
younger generation in India.
In Europe, as average population is older than Asian countries, Coca cola
targeted the older generation of the population. Similarly in USA, Pepsi targeted
the generation X (younger generation) as they comprises majority of the
population and they positioned Pepsi in the mind of youth that Pepsi is for the
youth.
Pepsi targets the youth of India. Its campaigns generally focus on the teens and
young adults. It attempts to capture the youth of today by focusing on their
personality, lifestyle and their attitude in its advertisements.

Geographic segmentation
Pepsico has segmented the market on the basis of rural and urban area. As the
climate of the country is hot and dry it aims at the geographical areas where
people actually require something to quench their thirst. That is why pepsi came

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with chotta pepsi in rural areas to tap the market where people want cold drink
which is good as well as cost effective.
Taste and Preferences
According to the taste and preference of the customers pepsi came up with a
product like diet pepsi. It came up with diet pepsi in order to cater to the needs
of those people who are very health conscious.
Moreover with their nimobooz lemon drink the company has targeted the most
preffered Indian drink that is nimbu pani and has been a huge success. The
company has sold more than 50 lakhs cases of Nimbooz in just 2 years.
Behaviour segmentation
In occasions like parties, birthdays, sports and regular occasions the soft drinks
are preferred at every occasion. It is liked by each and every member of the
family whether a child or an adult or an teenager. Even if there is no occasion
due to environmental factors people do purchase pepsi.
Psychographic segmentation
Mirinda : Girls Savy drink
Dew : For the people who dare
My Can : for the trendy
Pepsi : for Youngistan.
Tropicana : heatlth conscious people.

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Targeting

Pepsi targets both the rural as well as the urban segments. For urban segments
the targeting strategy is trendy cans ,fridge packs which is mostly trendy and
liked by the youngsters. The rural market is targeted with entirely different
strategy altogether. They keep price as an important decision making variable.

Positioning
Pepsi has always been brand that embodies the most prevalent youth
sentiment. Over the years as youth has evolved, so have Pepsis
positioning and language.
.Pepsi prefers to position itself as the beverage choice of the New
Generation, Generation Next, or just as the Pepsi Generation. These
terms adopted in Pepsis advertising campaigns are referring to the markets that
marketers refer to as Generation X. The Generation X consumer is profiled to
be between the ages of 18 to 29. They have high expectations in life and are
very mobile and active. They adopt a lifestyle of living for today and not
worrying about long-term goals. Though Pepsis main emphasis is on this
segment but they also have a focus on the 12 to 18 year old market. The rich
deep blue colouring represents eternal youthfulness and openness.

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Communication Objectives PEPSI


To separate brand identity for each products.
Extensive reminder advertising for repeat purchase.
Use of Teaser Adv. (Sanjay Dutt & Ranbir Kapoor) to supress NOISE.
Mention the Nutritional Value of product to increase consumer

awareness and build responsible brand image.


SIS to assist /boost impulse buying: Tropicana followed this strategy
quite succesfully.
Consumer Schemes to entice swift purchase action and also generate
more impulse buying as consumer have become more knowledgeable and
understand value for money hence prefer to products giving a better deal
with good quality products.

PepsiCos Campaigns
Pepsi
Pepsi began with the Yehi hai Right Choice Baby campaign, which has been
one of the most memorable campaigns of the brand, featuring celebrity
endorsers such as Shah Rukh Khan among others. The focus, as is clearly
evident, is on the product with the youth as its target segment.

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Yeh Dil Mange More and Yeh Pyaas Hai Badi were some of the later
campaigns. The latest campaign Yeh Hai Youngistan Meri Jaan also targets the
youth.
Yeh Dil Mange More campaign was again a great success, having balanced the
emotional as well as the functional appeal of the product. Featuring Sachin
Tendulkar and many other leading stars at that point of time, this was also one
of the longest campaigns carried out by Pepsi. The company however failed to
maintain the trend and leverage it. Instead of moving on to a complete
emotional appeal platform, the company decided on a product based promotion
campaign. Though there is still some amount of emotional appeal to its
campaigns, the principal focus is on the product - it being a preferred thirst
quencher.
7 UP
In its early days, 7 UP inherited the global Fido-Dido campaign for promotion
in India as well. However, with changing times and a contextual difference in
India, a much more focused campaign was required. This led to the Keep It
Cool campaign, which was targeted primarily at the youth and the teenager
segment. Hence the appeal was at a more subtle, emotional level, which was
meant to convey a potential lifestyle statement. The recent campaign of Bheja
Fry essentially leverages on the same emotional appeal where the Keep It Cool
campaign has been somewhat tweaked to have a local appeal.
Mountain Dew
Mountain Dew is the latest entrant in the product portfolio. This product too has
the appeal of being the drink of a daredevil or the No Fear personality. The
campaigns launched include Do the Dew and Darr Ke Aagey Jeet Hai. The
initial campaign was unclear in terms of its appeal and the target segment, as a
result of which the brand suffered some jolts in the beginning. However, the

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latest campaign captures the No Fear or the Macho Man image. In this sense,
the brand directly competes with Thums Up from the Coca Cola Stable
About Youngistaan Campaign
This campaign has two new celebrities Ranbir Kapoor and Deepika Padukone
who acted in the two most-talked about Hindi films in 2007, to accompany
brand ambassador Shah Rukh Khan.
Ranbir confronts SRK while making a futile attempt at entering Deepikas
room to grab a Pepsi, Ranbir spots a poorly lit neon sign that reads Young
Hindustan Supermarket'. Due to the broken neon light, Ranbir spots just a
few letters. When asked, where he has come from, Ranbir, based on this
observation, replies, "Youngistaan".
This time we wanted an all-encompassing theme. Youngistan reflects the
mood of Indias youth, which is today keen to take the ropes and drive India,
says Punita Lal, executive director, marketing, PepsiCo.
Youngistan, hopes to cash in on the buzz surrounding todays youngsters.
Youngistan is not so much a place and it is a state of mind of todays youth.
While the term is new, what it stands for the GenNext attitude is not
new.

STP-Segmenting, Targeting and Positioning of Youngistaan Campaign


Segmenting Pattern
Demographics

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The campaign targets teens and young adults of metros and phase II
cities.
Psychographics
The campaign attempts to capture the youth of today by focusing on their
personality, lifestyle and attitude of youth through the advertisement.
Targeting Strategy
The Youngistaan Campaign uses undifferentiated targeting strategy to
reach out to its target audience. That is it launched youngistaan campaign
for all the target audience in the same way.
Positioning
The campaign positioning is done on the basis of user approach i.e. a
personality based approach where a users image or association rubs off on
the brand image.
For this campaign Pepsi used the three most popular celebrities of the last
year i.e. Shahrukh Khan, Ranbir Kapoor, Deepika Padukone.
Placement of Youngistaan Campaign
The campaign was first launched on T.V during the tri-series matches in
February.
The campaign is launched with 360-degree activation across radio,
outdoor, modern trade, and Web and wireless platforms.
Pepsi has launched a website for Youngistan inside the Pepsi Cool Zone
and is planning to make it a responsive peer group site where youngsters
can visit and make comments on any topic.
Pepsi Youngistan is also sponsoring Wassup Youngistan on MTV, a
show where youth can voice their thoughts.
Advertising Agency of Youngistaan Campaign
JWT (J. Walter Thompson) is the advertising agency of Pepsi Youngistaan
Campaign. The idea is fast climbing the popularity charts. The seed of

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Youngistaan germinated through a recent TV campaign featuring the


'Saawariya' kid, Ranbir Kapoor, the present heart-throb of millions, Deepika
Padukone, and the ever-so-smart and smashing SRK.
PepsiCo India Executive Vice-President, Marketing (Cola), Sandeep Singh
Arora, while commenting on the new campaign said, "The new campaign
targets the youth of the nation, not only youngsters but also people young at
heart. Youngistaan represents a never failing attitude, desire to take on
challenges and the power to turn things around."
Expressing his opinion regarding the Youngistaan concept, Hari Krishnan,
Vice-President at JWT, said, "Youngistaan is a feeling that is racing through
every youthful nerve in the country today. Brand Pepsi will simply tap this
energy and help the youth express this emotion."

Advertising Strategy of Pepsi


Pepsis target audiences are mostly teens and young adults and their
advertising reflects this in every possible way.
The company changes its advertising strategy and image to reflect the target's
interests.
Pepsi makes sure that the advertisements reflect to the target audiences
interests and nostalgia.
The advertising strategy includes cool, hip promos to attract more of the target
audience.
The advertising is mostly creative and has different elements like music and
sports other than Bollywood.

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Pepsi.com also plays an important role in advertising and attracts target


audience by giving access to options like downloads, gaming, music mixing
applications etc.

Types of Appeal used in the Advertisements


Fear :

mountain dew advertisement depict the fear factor image by stating Darr
ke agge Jeet hai, this is one of the most successful campaigns for the
company as this latest campaign certainly seems to be a step in this direction;
the commercial attempts to associate the drink with ones ability to conquer fear
. It appears to be a cautious move to reposition the brand in an attempt to make
it more attractive to a wider consumer base.

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Homour :

The homour appeal has been very well used in various ad campaigns of pepsi
one of them being the snapshot of Chinese monk wherein he becomes after
rigorous hard work of years he tasted success and later the ritual to hammer his
head into the pepsi can to get the shape of the can on his forehead.

Evolution in PEPSI Logo

Slogans

1992 Gotta Have It


1993 Be Young, Have Fun, Drink Pepsi
1995 Nothing Else is a Pepsi
19961997: "Pepsi: There's nothing official about it
1997 Generation Next
19971998: "Generation Next" (with the Spice Girls)
19981999: "It's the cola" (100th anniversary commercial)

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1999 The Joy of Cola


1999: "Yeh dil maange more"
2001 Yehi hai Right Choice Baby
2004 Yeh Dil Mange More
2007 Yeh Pyaas Hai Badi
2009: "Yeh Hai Youngistaan Meri Jaan"
2010: Youngistan Ka Wow

Media selection
Television : PepsiCo India, one of the countrys biggest advertisers, is
diversifying its ad spends away from television which once accounted for 90
per cent of the budget, to focus on other media, especially online, as it aims to
connect with its core youth audience.
The company has recently launched a television campaign, which aims at
connecting with consumers through gaming. The concept called The Game
will bring together gaming and TV advertising. The idea is to involve
consumers in our advertising and not just doing one-way communication,
Outdoor Media: PepsiCo has increased the share of non-TV advertising
spend to 30 per cent of its advertising budget. This includes print, outdoor
media, mall advertising, mobile related applications and the Internet.
Internet :This year pepsico had decreased its superbowl expenditure budget
to increase its presence on online media to focus on youth. It has nearly
invested more than 20 million on online media with its refresh project and
create an impact on social networking sites like facebook twitter etc. Online
advertising is a focus area for us because youngsters these days are hooked to
the Net,.

Sponsorships

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Pepsi has sponsored various sports events like icc world cricket league, many
india Pakistan matches, IPL and also many other regional events. Pepsi
Youngistan is also sponsoring Wassup Youngistan on MTV, a show where
youth can voice their thoughts.

Pepsi has integrated digital and traditional media for the


promotion of their products in a very effective manner

Nowadays millions of consumers converse on a daily basis in online


communities, discussion forums, blogs and social networks. They turn to the
Internet to share opinions, advice, grievances and recommendations. It has been
said that traditional media is losing its face value and that the Internet is a fad
and digital only applies to the millennium generation. While that may seem true,
if you want to stay on the innovative cusp for your business, use both traditional
and internet media marketing and here are some reasons why:
1. Online conversations can power or deflate a company's brand. Do you have a
presence?
2. Discover specific issues that are being discussed around your company, brand
or organization and create feedback to these issues.
3. There may be events, trends and issues that may be influencing industry and
brand buzz.
4. Measure how your online and offline marketing campaigns resonate with
consumers.

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5. Leverage word-of-mouth to drive brand credibility, and ultimately sales if


you use face-to-face marketing, Internet Marketing, Search Engine
Optimization Strategy, and Social Media Strategy correctly.
People are more likely to communicate through both word-of-mouth and social
media when they are engaged with the product, service, or idea. This
engagement may come naturally for supporters of causes, political candidates,
and trendy new technological products. However, it can also be creatively
stimulated for products and services which generate less psychological
involvement of customers.
For example, Pepsi (2008) uses its Pepsi Stuff online customer loyalty program
to engage consumers by enabling them to redeem points for MP3 downloads,
television show downloads, CDs, DVDs, electronics, and apparel. Campaign
participants are also allowed to participate in sweepstakes drawings for larger
prizes, such as home theater systems and trip giveaways. Coca Cola (2008) has
a similar campaign entitled My Coke Rewards. According to Nielson
research, TV users watch more than ever before (an average of 127 hrs, 15 min
per month) and these users are spending 9% more time using the Internet (26
hrs, 26 min per month) from last year. Approximately 220 million Americans
have Internet access at home and/or work with a growing number using the
Internet for research and social media.
Knowing this research, traditional media entertains and communicates to a mass
audience whereas digital media entertains, communicates with, and engages the
individual. The benefits of digital media can be highly measurable and
marketers can often see a direct effect in the form of improved sales in addition
to establishing a direct link with the consumer. This can also be cost effective.
However, the pitfalls of digital marketing can be that the medium is new,
constantly changing and evolving with results that vary. You often get what you

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ask for! Digital media is known as digitized content (text, graphics, audio and
video) that can be transmitted over the Internet.
While digital media consumption such as twitter, facebook, youtube etc have
increased tremendously, Pepsi cannot ignore consumers who still rely on
traditional media for their informative and entertainment needs, as a result, 2/3
of their advertising budget is still dedicated to traditional media. Marketers must
strike a good balance between using traditional and digital/social media and
other promotional tools.

Bibliography

www.google.com
www.pepsico.com
www.pepsicoindia.com
www.wikipedia.com
www.docstoc.com
www.advertisers.com
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