Professional Documents
Culture Documents
Submitted by:
Name ID
Nilufa Easmin Nila 133-11-612.
Maha Buba Akter Nitu. 133-11-664.
Md. Ariful Alam 133-11-630.
Fatema Tuz Zzohora 133-11-618.
Program: BBA.
Course name: Principles of Marketing.
Course code: MKT101.
Submitted to:
Md.Safayet Mansoor.
(Lecturer of BBA department).
Sincerely yours
Name ID
Acknowledgement:
We would like to thank the PepsiCo company as we made
a report on one of their product, all those web sites from
where we collect information about Pepsi, our team
member and a special thanks to our respective teacher
MD.Safayet Mansoor for giving us this opportunity to
represent our idea and for giving us the right
direction,motivation and for helping us to complete our
report.
Executive Summary:
This report provides an analysis and evaluation of the
Marketing Strategy for Pepsi. Methods of analysis include
Market Segmentation, Market Targeting, and Market
Positioning of Pepsi. Into this analysis we have tried to
show how Pepsi segment their market basing on different
variables. Their target market which they serve. We also
discuss about Pepsis internal and external
environment.Their Position in the market and how do they
differentiate themselves to make a position in their
customer mind, their strategy of positioning in market we
tried to give a positioning statement of Pepsi and ended
the whole report with a conclusion and a
recommendation.
Table of content:
Price:
Amount of
product
Low
er
Hig
her
Production
cost
Market Segmentation
As we know that Pepsi is provided among a huge
population which is called market. To distribute it and
increasing the revenue the market should be segmented.
Pepsi has segmented their market keeping four major
segmentation variables in their mind which are:
Geographic
Demographic
Psychographic
Behavioral
Geographic Segmentation:
Geographic segmentation means dividing the market into
different geographical units such as nations, regions,
states, countries, cities or even neighborhood. Pepsi has
put little emphasis to segment their market
geographically. They are doing business almost in
maximum places around the world.
Demographic Segmentation:
Despite the large customer base in the Soft Drink
industry, Pepsi prefers to segment 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 what marketers refer to as
Generation X, which are profiled to be between the ages
of 18 to 29. In addition, Pepsi shifted its focus to the
growing American teenage market in the 1990s by
forming exclusive contracts with American schools and
developing advertising campaigns such as The Next
Generation and the Joy of Pepsi, featuring Britney
Spears. Pepsi believes that if they can get this market to
adopt their product, they could establish a loyal customer
in a long run.
Psychographic segmentation:
Psychographic segmentation divides buyers into different
groups based on social class, lifestyle or personality
characteristics. People from same demographic group can
have very different psychographic makeups. Pepsis
segmentation has also been emphasized psycho
graphically. Their beverages are very much focusing
towards lower and upper middle class as they can afford
to drink Pepsi. They have a product like Mountain Dew
a particular drink which is focused especially who has
adventurous personality. Their campaign of this drink
totally focuses to adventurous young people.
Behavioral segmentation:
Behavioral segmentation divides buyers into groups
based on their knowledge, attitudes, uses or responses to
a product. In this segment, Pepsi has been concentrating
carefully. Because they offer in every special occasions,
for the people who seek for benefits off their products, to
their loyal customer base. Occasional cases like religious
festivals; special days like mothers day, valentines day,
friendship day, any individuals birthday or marriage
ceremony or anniversary in a word in every special
occasions there are people to whom buying Pepsi for
celebration is must.
Segmentation Data
Variables
Geographical
Age 14-30
Gender Male, Female
Family Size 1-2, 3-4, 5+
Family Life Cycle Married, Unmarried
Psychographic
Social Class Middle Class, Upper Class
Lifestyle Actualizes, Believers, Fulfilled,
Achievers, Strivers, Experience
makers, Strugglers
Personality Adventurous
Behavioral
Occasions Parties, Birthdays, Sports, Regular
occasions
Benefits Quality, Taste
User Status First Time User
Loyalty Status Strong
Readiness Stage Aware, Interested
Market Targeting:
Market Targeting can be carried out at several different
levels. Companies can target very broadly through
Undifferentiated Marketing, very narrowly through
Micromarketing or somewhere between Differentiated
Marketing and Concentrated or Niche Marketing. There
are four strategies of market targeting. Pepsi follows the
strategy of Concentrated or Niche Marketing. In niche
marketing companies goes after a large share of one or a
few segments or niches. Through concentrated
marketing, the firm achieves a strong market position
because of its greater knowledge of customer it serves in
the niches it serves and the special reputation in
acquires. Pepsi customers are mostly Teenagers and
Young Adults between the ages of 14 to 30. It also targets
at Schools, Colleges, Universities, Homes, Restaurants,
Hotels, and Stores They focused on varietal differentiation
since 1990 by introducing a string of niche products. To
increase volume in order to counter flat Coca-Cola sales,
Pepsi introduced Sierra Mist in 2002-2003 to take the
place of 7-up and go head-to-head with Sprite. Pepsi has
also tried to boost volume by introducing products that
appeal to specific target markets that it currently is not
reaching. Pepsi has introduced Code Red and Live Wire,
extensions of Mountain Dew, Pepsi One, and Pepsi Blue.
Finally, Pepsi is countering declining sales of carbonated
drinks through the marketing and distribution of
Starbucks ready to drink products, and the acquisition of
SOBE and Gatorade. The success of Pepsis Mountain Dew
Code Red launched in 2001 was the most successful soft
drink innovation in 20 years and has spurred even more
niche product introductions for PepsiCo as well as other
competitors. In some sense Pepsi also follows the idea of
Micromarketing. As they are they are promoting their
brands to the local customer groups. They are sponsoring
the signboards for the little or big shopkeepers in town.
They are also providing refrigerator logoed Pepsi. All
these they are doing to attract their target customers..
Market Positioning:
PepsiCo plans to further create positions that will give
products the greatest advantage in their target markets.
Pepsi has been positioned based on the process of
positioning by direct comparison and have positioned
their products to benefit their target market.
Positioning Strategies of Pepsi:
To find points of differentiation, Pepsi have followed some
strategies which have differentiated themselves from
others. Usually marketers try to differentiate along the
lines of following things
Product Differentiation
Channel Differentiation
Image Differentiation
Pepsi have differentiated themselves in the field of
Product Differentiation, Channel Differentiation and Image
Differentiation. The unique characteristic of their product
and their brand image has differentiated themselves from
the other beverages in market.
Product Differentiation:
Product differentiation comes into play for sure in the
case of Pepsi. When looking at Pepsi, people think of
soda.
Channel Differentiation:
Coke and Pepsi distribute their drinks through
independent bottlers. These firms make the ingredients
for the drinks and then ship them to the local bottlers,
who pretty much finalize the product. After this is done,
this bottler has the right to distribute whatever brand it
wants to a specific region. On the other hand, a brand
such as Canady Dry does something much different.
Canady Dry packages its product in several locations and
then ships them to wholesale grocers who distribute them
to the local grocery stores and outlets. This is a great
example as to why Canady Dry is strong within local
grocery stores, but why they are not present in vending
machines like Pepsi is. Furthermore, I found it really
interesting that since the vending machine market is
dominated by Pepsi and Coke, that Canady Dry actually
has to be purchased in order to get into a vending
machine; something that doesnt happen too often.
Image Differentiation:
Creating a strong and distinctive image requires creativity
and hard work. Symbols, signs, logos and color are used
to create strong-company or brand recognition and image
differentiation.
Positioning statement for Pepsi:
As we discussed earlier that Pepsi positions itself on
points of difference as well as points of parity. Pepsi's POD
is their forward thinking attitude. According to that
Pepsis positioning statement is
To new generation, those who want the best taste
in drinks, Pepsi is a cold drink which gave the best
taste, low fat in a reasonable spending.
Brand strategies
Brand Positioning:
Product attributes- First introduced as "Brad's Drink".
1893 (as Brad's Drink)
1898 (as Pepsi-Cola)
1961 (as Pepsi)
2014 (as Pepsi-Cola)
Product Benefits- fountain drink, aid in digestion and
boost energy (1893).
Soda (carbonated soft drinks), with different types of
calories and taste.
Beliefs and Values- create with slogan they provide since
1893-2014.
19391950: "Twice as Much for a
Nickel"
1950: "More Bounce to the Ounce"
19501957: "Any Weather is Pepsi
Weather"
2012: "Change the Game"
2013present: "Live for Now"
Brand name selection:
Created and developed in 1893 and introduced as Brad's
Drink, it was renamed as Pepsi-Cola on August 28, 1898,
then to Pepsi in 1961, and in select areas of North
America, "Pepsi-Cola Made with Real Sugar" as of 2014.
The original trademark application for Pepsi-Cola was
filed on September 23, 1902 with registration approved
on June 16, 1903. In the application's statement, Caleb
Bradham describes the trademark as an "arbitrary
hyphenated word "PEPSI-COLA"", and indicated that the
mark was in continuous use for his business since August
1, 1901. The Pepsi-Cola's description is a flavoring-syrup
for soda water. The trademark expired on April 15, 1904.
Brand Sponsorship:
Inside PepsiCos One For All, All For One Sponsorship
Strategy.
In addition, PepsiCo for the first time is activating the NFL
across its full line of Pepsi products: Pepsi, Diet Pepsi,
Pepsi Max and Pepsi Next. With a portfolio that includes
the NFL, MLB, the International Cricket Council and other
domestic and international properties, PepsiCo, Inc. is one
of the worlds top sponsors in terms of annual spending.
The Pepsi Are You Fan Enough? Lounge.
Brand development:
Line Extension- In a line Pepsi has Diet Pepsi, Pepsi Next,
and Pepsi Zero etc.
Distribution Channel of Pepsi:
Marketing channels are sets of interdependent
organization involves in the process of making a product
or service available for use or consumption.By channel
distribution of Pepsi means the intermediaries or the
process through which Pepsi is transferred from the
producer to the ultimate users. There are a lot of
intermediaries between Pepsi producers and consumers.
Some intermediaries like wholesalers and retailers buy
and resale the product. They are known as merchant
middle men.
Intensive Distribution:
Pepsi Co follows an intensive distribution strategy to
distribute Pepsi. To support their universal feature they
want to place their product in as many outlets as
possible.
Distribution Model of Pepsi:
Pepsi uses two types of distribution model to distribute
the product among the consumers. They are
Direct Distribution System
Indirect Distribution System
PIZZA HUT
KFC
Manufactu Consu
rer
mer
PEPSI DISTRIBUT
ORS
WHOLESA
LER
RETAILER CONSUME
S RS
Number of Intermediaries:
Pepsi Provides direct and indirect employment of 1, 50,
000 people (including suppliers and distributors).
Distributors:
Distributors frequently have a business relationship with
manufactures that they represent. The distributors of
Pepsi maintain exclusive buying agreements that limit the
number of participants. The distributor becomes the
companys direct point of contact. Distributors dont sell
the product directly to consumers. At first PepsiCo
supplies Pepsi to the distributors. Then they resale the
product to wholesaler or retailer. According to
http://www.exporters.sg/, there are 70 distributors of
Pepsi. Some of them are:
OTC GLOBAL LTD, INDIA (Exporting and importing Pepsi in
500 ML pet Bottles )
SUNRISE FOODSTUFF JSC, VIET NAM (Exporting Famous-
Brand Pepsi Soft Drinks 330ml.)
Wholesalers:
The wholesalers of Pepsi generally buy a large quantity of
products directly from distributors or the company. Then
they resale the product to the retailers. According to
http://www.exporters.sg/there are 70 wholesalers of
Pepsi. Some of them are:
FAR WAY GENERAL TRADING LLC (Exporting and
importing Pepsi )
Brand Distribution Poland LTD, POLAND
(Exporting Pepsi 0,33L 24 cans case)
Retailers:
Retailers consist of small and large for-profit businesses
that sell products directly to consumers. The retailers buy
small quantities of an item from a distributor or a
wholesaler. Then resale them to consumers. According to
http://www.exporters.sg/ there are 563 retailers of Pepsi.
Some of the retailers are
Akin Enterprise, BANGLADESH.
ANSii Computers, BANGLADESH
The channel of distribution is a structure which
presents a choice among alternative channels of
distribution of the different marketing situation faced by
retailers, wholesaler and producers within the structure.
To bearing maximum profits of all institutions concerned a
channel of distribution should be treated as a unit of total
system of action.
Public relation:
Pepsi is the first product to respond to consumer
preference with lightweight, recyclable, plastic bottles. In
addition, different approaches of promotional campaigns
such as press releases have been imposed so as to make
the product more appealing to the target market and to
make these product marketable.
Personal selling:
Pepsi use pull strategy for selling the product. In every
occasion Pepsi brings special offers. Like, they reduce the
price; give extra quantity of drinks in the same price.
Publicity:
For publicity Pepsi use social media such as Face Book.
Not only that Pepsi use YouTube to promote its product. It
drives public attention toward the product. Pepsi also use
brand ambassador and sponsor cricket team and world
cup for publicity.
Direct Marketing:
Pepsi uses its direct marketing to distribute their product
through PIZZA HUT, KFC etc. More than that, they use
ecommerce Such as Refreshment Services Pepsi.com to
market the product.
Recommendation:
Bibliography
Pepsi
http://www.pepsiproductfacts.com/?or=pusa.1067.
PepsiCo
http://www.pepsico.com/Company/The-Pepsico-
Family.aspx .
Wikipedia: Pepsi
http://en.wikipedia.org/wiki/Pepsi.
Wikipedia: PepsiCo
http://en.wikipedia.org/wiki/PepsiCo.
Market Targeting
http://aboutpepsico.blogspot.com/2010/01/market-
targeting-is-process-of.html.
http://mpmcgraw.wordpress.com/2011/02/21/product
-differentiation/.
New York Times
http://topics.nytimes.com/top/news/business/compan
ies/pepsico_inc/index.html.
Appendix:
Source: MORI
Proportion size and Purchase profile
Source: www.bplans.com