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Pepsi Marketing Mix
Pepsi Marketing Mix
Marketing Mix
Marketing Mix is the set of marketing tools that the firm uses to
pursue its marketing objectives. Marketing mix has a classification
for these marketing tools. These marketing are classified and called
as the Four Ps i.e. Product, Price, Place and Promotion.
The most basic marketing tool is product which includes product
d e s i g n , q u a l i t y, f e a t u r e s , b r a n d i n g , a n d p a c k a g i n g .
A critical marketing tool is price i.e. the amount of money that
customers pay for the product. It also includes discounts,
allowances, credit terms and payment period.
Place is another key marketing mix tool. And it includes various
activities the company undertakes to make the product accessible
a n d a v a i l a b l e t o t h e c u s t o m e r. S o m e f a c t o r s t h a t d e c i d e t h e p l a c e a r e
transport facilities, channels of distribution, coverage area, etc.
Promotion is the fourth marketing mix tool which includes all the
activities that the company undertakes to communicate and promote
i t s p r o d u c t t o t a rg e t m a r k e t . P r o m o t i o n i n c l u d e s s a l e s p r o m o t i o n ,
advertising, sales force, public relations, direct marketing, etc.
Product
I n m a r k e t i n g , a p r o d u c t i s a n y t h i n g t h a t c a n b e o ff 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 i s o f t w o t y p e s : Ta n g i b l e
(physical) and Intangible (non-physical). Since services have been
at the forefront of all modern marketing strategies, some
i n t a n g i b i l i t y h a s b e c o m e e s s e n t i a l p a r t o f m a r k e t i n g o ff e r s . I t i s
therefore the complete bundle of benefits or satisfactions that
buyers perceive they will obtain if they purchase the product. It is
the sum of all physical, psychological, symbolic, and service
a t t r i b u t e s , n o t j u s t t h e p h y s i c a l m e r c h a n d i s e . A l l p r o d u c t s o ff e r e d i n
a m a r k e t c a n b e p l a c e d b e t w e e n Ta n g i b l e ( P u r e P r o d u c t ) a n d
Intangible (Pure Service) spectrum.
Coke - Product
The Coca-Cola formula is The Coca-Cola Company's secret recipe
for Coca-Cola. As a publicity marketing strategy started by Robert
W. Wo o d r u ff , t h e c o m p a n y p r e s e n t s t h e f o r m u l a a s o n e o f t h e m o s t
closely held trade secrets ever and only a few employees know or
have access to. This Coca-Cola formula appears to be the original
formula to Coca-Cola. It is from the book “For God, Country and
Coca-Cola”.
Pepsi - Product
The Pepsi-Cola drink contains basic ingredients found in most other
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 b o 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 y r u p ,
s u g a r, c o l o r i n g s , p h o s p h o r i c a c i d , c a ff e i n e , c i t r i c a c i d a n d n a t u r a l
f l a v o r s . T h e c a ff e i n e f r e e P e p s i - C o l a c o n t a i n s t h e s a m e i n g r e d i e n t s
b u t n o c a ff e i n e .
S o m e o f t h e d i ff e r e n t a n d v a r i e d b r a n d s o f P e p s i a r e a s f o l l o w s :
Coke Pepsi
The main dark cola drink of the company Pepsi version of dark cola which is the
which started the rivalry between these major primary competitor to Coke.
companies.
F u l l T h r o t t l e i s a n e n e rg y d r i n k A M P i s a n e n e rg y d r i n k p r o d u c e d
brand produced by The Coca- and distributed by PepsiCo under
C o l a C o m p a n y. I t d e b u t e d i n l a t e the Mountain Dew soft drink
2004 in North America. brand.
Va u l t i s a c a r b o n a t e d b e v e r a g e M o u n t a i n D e w M D X i s a n e n e rg y
that was released by The Coca- drink manufactured and
Cola Company in June 2005. distributed by PepsiCo under the
Mountain Dew brand. It was
introduced in 2005.
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Tr o p i c a n a P r o d u c t s i s a n
Minute Maid is a product line of American company based in
beverages, usually associated Bradenton, Florida, USA, which
with orange juice, but now i s o n e o f t h e w o r l d ' s l a rg e s t
extends to soft drinks of many producers and marketers of
kinds. The Minute Maid company orange juice. It has been owned
is now owned by Coca-Cola, and by PepsiCo, Inc. since 1998.
i s t h e w o r l d ' s l a rg e s t m a r k e t e r o f
fruit juices and drinks. It is
h e a d q u a r t e r e d i n H o u s t o n , Te x a s .
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Barq's is a brand of root beer Mug Root Beer is a brand name of root
notable for being the only major beer made by the Pepsi company.
North American root beer to
c o n t a i n c a ff e i n e . I t h a s b e e n
bottled since the start of the 20th
century and is currently sold by
t h e C o c a - C o l a C o m p a n y.
Sprite Ice was the first flavor Pepsi Blue is a soft drink made by PepsiCo
extension for The Coca-Cola and launched in mid-2002.
Company's Sprite brand soft
drink.
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C o c a - C o l a B l a k i s a c o ff e e - Pepsi Cappuccino is a
flavoured soft drink introduced cappuccino-flavored carbonated
by Coca-Cola in 2006. soft drink produced by Pepsico.
Price
In economics and business, the price is the assigned numerical
monetary value of a good, service or asset.
Price is also central to marketing where it is one of the four
variables in the marketing mix that business people use to develop a
marketing plan.
Pricing is a big part of the marketing mix. Choosing the right
price and the right pricing strategy is crucial to the marketing
process.
The price of the product is not something that is fixed. On the
other hand the price of the product depends on many other factors.
Some times the price of the product has got nothing to do with the
a c t u a l p r o d u c t i t s e l f . T h e p r i c e m a y a c t a s a w a y t o a t t r a c t t a rg e t
customers.
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Coke - Price
B u t a f t e r t h e e m e rg e n c e o f o t h e r c o m p a n i e s e s p e c i a l l y t h e l i k e s
of Pepsi, Coca-cola started with a pricing strategy based on the
basis of competition. Nowadays more expenses are spent on
advertising my soft-drink companies rather than
on manufacturing.
Even today most prices of Coke are decided on the basis of the
competition in the market.
Pepsi – Price
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.
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This was the situation earlier but now Pepsi is a full-fledged and
g r o w i n g c o m p a n y. I t h a s c o v e r e d a l l i t s l o s s e s a n d i s n o w g r o w i n g a t
a rapid rate.
Place
Place is a term that has a variety of meanings in a dictionary sense,
but which is principally used in a geographic sense as a noun to
denote location, though in a sense of a location identified with that
which is located there.
Coke - Place
Coke is a multinational company and it has its market around the
entire world. This can be said just by the first page on its site which
asks people to select the place of their choice. The website looks
something like this:
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Pepsi – Place
Pepsi again has spread worldwide. Pepsi when entering a new
m a r k e t d o e s n o t g o i n a l o n e b u t i t l o o k s f o r p a r t n e r s a n d m e rg e r s .
Ti l l n o w P e p s i h a s c o l l a b o r a t e d w i t h c o m p a n i e s l i k e Q u a k e r O a t s ,
Frito-lays, Lipton, Starbucks, etc.
Pepsi like Coke has spread all over the world. It is because of
this worldwide spread that now it is coming up with Advertisements
w h 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 ff e r e n t n a t i o n s i n t h e w o r l d . T h e
recent example with would be the Pepsi advertisements having David
B e c k h a m a s i t b r a n d a m b a s s a d o r.
Promotion
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Both the companies Pepsi and coke are famous for their
promotions. The rivalry was first started when Pepsi started with its
blind taste tests known as the Pepsi Challenge. The challenge is
designed to be a direct response to critics who allege that Coca-Cola
a n d P e p s i - C o l a a r e i d e n t i c a l d r i n k s , w i t h n o m e a n i n g f u l d i ff e r e n c e s .
The challenge takes the form of a taste test. At malls, shopping
centers and other public locations, a Pepsi representative sets up a
table with two blank cups, one containing Pepsi and one with Coke.
Shoppers are encouraged to taste both colas, and then select which
d r i n k t h e y p r e f e r. T h e n t h e r e p r e s e n t a t i v e r e v e a l s t h e t w o b o t t l e s s o
the taster can see whether they preferred Coke or Pepsi. If Pepsi is
revealed, the shopper is given a small prize. The implication is that
Pepsi tastes better than Coke, and thus consumers should purchase
Pepsi.
Infact in the next graph you can see how many programs are
sponsored by cola companies and the leader among them is Pepsi.
Mainly Pepsi is the company sponsoring most cricket telecasts
happening in India and spends most of its revenue in that field.
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Nowadays both Coke and Pepsi are going in for Brand Ambassadors
to promote their product. These brand ambassadors are famous
people who usually people idolize and people can relate to them.
The following pictures do not need any explanation as people are
familiar with the celebrities and can thus quickly identify with the
product.