EXECUTIVE SUMMARY

Kentucky Fried Chicken is a fast food network spread everywhere throughout the world. KFC
underscore at making incredible memory and positive conclusions towards their things. KFC
makes 'qualities' around their thing as a level of arranging. KFC has an amazing formula for
their things particularly for fried chicken.
The brand mantra of KFC is fun, folks and tasty. The prime concern of difference of KFC is
Chicken. KFC brand segments are huge, significant, transferable and viably flexible across over
globe. KFC have strong correspondence with its clients by making imaginative advancements
and their continuous promoting exertion is add to kill hunger. The issue is customer's needs to
stay sound thusly, KFC must be successful if it consolidate Solid part into its situating.

BRAND HISTORY & BACKGROUND

KFC signifies 'Kentucky Fried Chicken' and was started by an individual named Harland
Sanders. It is presently an assistant of Yum! Brands.

Background

The marvelous fried chicken formula came in 1936. He tried the First Formula of 11 herbs in
1940 on Chicken. To feature the recipe the bistro thought of the name 'Kentucky Fried
Chicken'. Additionally, along these lines, the unimaginable brand of KFC was built up.

From the essential year itself results began to show and arrangements were outperforming
wants. By 1960 around 200 diners were selling the recipe and by 1963 it had landed at 600.
Constantly 1967, KFC had continued to transform into the sixth greatest evolved way of life
organize by bargains volume in the U.S. KFC started by starting stores in Canada and in a little
while spread itself into more than 40 countries with 3000 outlets always 1970. KFC procured
by Yum in 1997. So Today KFC is the second greatest diner coordinate with in excess of 15,000
eateries more than 125 countries around the world.

Brand Strategy Analysis

KFC goes under the item class of Quick Service Foods.
BRAND ARCHITECTURE & PORTFOLIO Brand Architecture
KFC goes under the item class of Quick Service nourishments. KFC utilizes Branded House,
every one of the items inside it is the subset of the essential brand 'KFC' eg: KFC Chicken, KFC
Hot Wings, KFC Zingratha. The entirety of their partners they are referred to just as "KFC".

Brand Hierarchy

Brand Hierarchy of KFC is given underneath.

Brand Portfolio
All products which are being sold by kfc.
Wow.
A list of of Vegitarian and non-Vegitarian products including some offers like Potato Krisper,
and The Crunchy Chicken and some other products.

Cayan Grill.
Cayan chicken is a wonderful dish which they marinate in spices and on a hot plate, they are
grilled.

KFC Twister.
Extra Crispy, Freshly prepared, (white meat) chicken strips, served with lettuce and pepper and
tomato, mayo sauce –in a soft, warm tortilla they all are packed toghether.
KFC Rice.
KFC’s rice meal, includes arabian rice, chiken fillet which are crispy and served with tamato
sauce.
Brand Vision
In a fast, friendly environment, selling the food that attracts the price sensitive and health-
minded consumers."
Value
KFC is a global brand and acts as a part of its customer lives, and consists of 750,000 active
and enthusistic employees. They work together to produce tastier tastes which follows its
consumers..

Brand Mantra

BRAND TARGET MARKET, BRAND points of parity and differences

Brand Target
KFC not only target kids, jobians and students but overall consumers from age 5 to 50

Brand POD

1. KFC is very famous for its special CHICKEN products.

2. Its very different prodcuts are (Zingratha and the rice bowl)
3. Blend of "11 herbs and spices" which is a secret.
4. KFC websiteis having “Calculator for Nutrition” for the each of its meal.

Brand POPs
1. Targeting the Children and Youth
2. Positioning itself as “Tasty”
3. Fast food chains globally
4. Beverages and French frises.
5. Quality food
6. Using website (online orders)
7. Orders and home delivery
8. Offerings and discounts.

Brand Elements of KFC

Kentucky Fried Chicken” is its brand name.

Brand Awareness.
KFC is called Kentucky fried chicken. People use to call it as KFC because its easy to
pronounce. This short name is easy to recall and easy to memorize.
Brand Association.

KFC is easily recallable and recognied. The name “KFC” is memorized with its product
category that is called Fast Food Restaurants.

URLs.
KFC’s URL is :https://www.kfc.com/

Logos.

What “KFC” logo represents is its founder “Harlan Sanders” and it has changed overtime.

Slogans.
The slogan of kfc is "Finger Lickin' Good".

CRITERIA FOR EVALUATING BRAND ELEMENTS

. Memorable

The brand “KFC” is easily recognized by its logo “Sanders” and colour “Red” and it is
easily recalled by its product category of quick service restaurants. So the recognition and
recallability creates brand awareness among the customers.
 2. Meaningful

The brand “KFC” is Descriptive. It conveys the general information about the function of
the product or service offered by KFC and specific information about particular attributes and
benefits of the KFC.

3. Likable

The brand “KFC” puts in fun and interesting in youth through its packaging, 5 in 1 box,
Charger box. The brand KFC have a rich visual imagery and it is aesthetically pleasing. A
memorable, meaningful and likeable set of brand elements of “KFC” offers many advantage
to the brand.

4. Transferable

The brand “KFC” is easily transferable within and across product category and adds the
brand equity for new products or in new markets. It is also transferable across geographic
boundaries and culture by providing transnational products to respective countries.

5. Adaptable

The brand “KFC” is adaptable over the period of time with the changes in consumer values
and opinion. Since the brand elements of KFC is more adaptable and flexible, it is easy to
update. The logo of KFC is given a new design to make them appear modern and relevant.

6. Protectability

The "Finger Lickin' Good " slogan was trademarked by KFC and so it is legally protected.
The brand “KFC” is legally protected internationally and formally registered with appropriate
legal bodies.

BRAND ENGAGEMENT
On social media kfc has its public profiles and pages on instagram, facebook, youtube, twitter
etc.
Loyalty Programme
KFC is offering many loyaly programmes like Colonel's Club Loyalty, Promotions and
discounts gifts and coupons.

Brand Competitive Analysis

The primary competitors Subway, mcdonalds, pizza hut cant give so much tastier spicy
chicken becasue they have such kind of methodology which is only made by KFC. Through
updated promotion KFC beats its competitors

BRAND RESONANCE PYRAMID

Salience

1. Fast food Chain globally.

2. Recognition by brand elements by customers.
3. They recall and recognize KFC as Chicken Quick Service Restaurant

Performance
a. Characteristics and Features
• Different product line (Zingratha and rice bowl)
• Different packaging, KFC has special paper bucket
• Serves Drinks and french fries with Burgers
• Internet access (online orders)
• Home delivery
b. Price
• Low prices than other brands
• Discounts on Wednesday
c. Service
• Quick Service Restaurants
• Self Service

c. Imagery
1. Kids & youth.
2. You want to eat chicken when hungry.
3. Fun moments when spending time with friends
Judgements
1. Good Quality
2. Better Service
Feelings:
1. Feel prestigious when eating western
food.
Loyalty
1. Customers are having both behavioral and attitudinal loyality.
Attachment
 1 Customers remember kfc whenever they want to eat chicken

Engagement

1. Customers who like kfc follow it continuously

2. Customers like to visit social platforms of kfc
Strategic Recommendation
The brand "KFC" have situated from "Tasty" to "Freshly & Crispy". Being a fast food it
position itself as freshly fried. The issue is clients’ needs to remain healthy thus, KFC must take
effective measurements to tackle health related issues. KFC has its very own uniqueness by
having mystery 11 secret ingredients. Proposed suggestion for KFC would be keeping up the
present prices of existing items. Changes in costs won't profit KFC.

Product Packaging, Pricing, Sales Promotion Evaluation

3.2.1 Brand positioning

Brand positioning are based on the benefits the customer wants. The brand positioning
of the Kentucky Fried Chicken is

“Very tasty, healthy and freshly prepared chicken that they can eat whenever they want at the
same quality of the target customers age 4 – 50, Chicken products which can be enjoyed as a
family in the environment of a social gathering”

KFC emphasize at creating good memory and positive feelings towards their products.
Whenever you think of KFC you have to think of somebody. It can be your family, friends,
loved ones or somebody else, somebody to share the fun of eating and to share the taste.

KFC creates ‘attributes’ around their product as a level of positioning. They highlight the
product functionality which is “tasty” food. KFC has a very unique recipe for their products
which is also their core competency.

3.2.2 Marketing Mix

Product

 Streetwise: Veg Snacker, Chicken Snacker, Snack Box, Rizo Rice, Rizo Gravy, Mini
Krusher,
 Snacks: Popcorn Chicken, Hit Wings, Boneless chicken strips
 Veggie Selection : Veg Snacker, Veg Zinger, Veg Strip with Salsa
 Toasted Wraps
 Burger: Veg Zinger, Chicken Zinger, Tower Zinger
 Box Meal
 Chicken Delight : Fiery Grilled, Hot and Crispy, Original Recipe
 Bucket Chicken
 Signature sides: Corn on the cob, Coleslaw, Fries
 Krusher: Frappe, Iced Mochaccino, Iced Kappucino
 Desserts: Soft wirl, Choamor, Brownie Sundae

Price

Market skimming: KFC globally enters the market using market skimming. Their products are
priced high and target the middle to upper class people. Gradually they trickle down the prices
focusing on the middle to lower class people to penetrate both sides of the market.

Cost Based: KFC price their product keeping different points in view. They adopt the cost base
price strategy. Pricing of the product includes the govt. tax and excise duty and then comes the
final stage of determine the price of their product. The products are bit high priced according
the market segment and it is also comparable to the standard of their product. In the cost based
method we include the variable and fixed cost
Place

Placement of outlets:

Due to KFC placing itself close to schools, colleges, cinemas and markets which are mostly
populated by the young and those who are in a hurry, KFC enjoys a large number of sales every
day.

KFC works on the flow of good operation techniques. Good Operating Manager leads to Good
Team Selection to Good Services to Good Targets to Good Revenues through the following
internal strategies

1. Training
2. Incentive based targets
3. Recognition for good work
4. Performance based bonus
5. Employee benefits to keep them motivated

Promotion:

KFC always believes in keeping its outlet in premium areas as well as in malls and shopping
complexes. These KFC outlets can also carry out delivery for online orders of KFC. As a result,
KFC covers both – online and offline deliveries.

 Free home Delivery strategy - They provide free home delivery to offices & homes
(select countries)
 Accessibility - Resulting in several outlets to cater to the needs of people in & around
the city.
 Hectic lifestyle - Due to the hectic lifestyle of office goings individuals the fast food
concept saves time of preparing food and gives the customer a full meal quickly.
  Economically convenient - The pricing appeals to the many classes of a society.
 Hectic lifestyle of individuals - giving them more time at work and less stress about
waiting for food.
 Commercialization - Commercialization of urban and sub-urban markets leading to
more mid-sector people that find high-end eating joints very expensive.Mid-sector
people are always looking for change which KFC provides in their range of fast food.
 Quality conscious people in urban areas are more conscious about the quality of food
than rural areas.
 Urban areas are more populated therefore they help with attracting higher revenues.

Promotion is the method used to inform and educate the chosen target audience about the
organization and its products. Using all the resources of promotion like Advertising, Sales,
Promotion, Public Relations, Events, Coupons, Discounts and Bundled packages. At KFC,
Promotion is the main tool to bring all chicken lovers attention towards its delicious one-of-a-
kind product, the Fried Chicken.

Advertising: The logo of the smiling Colonel is probably one of the most recognized faces in
the world and instantly brings the image of fried chicken to one’s mind. KFC and its jingle,
‘finger lickin good´ is a frequent announcement on televisions, billboards, flyers. The concept
of showing a normal customer deeply involved in devouring his piece of chicken usually turns
on the drool factory in everybody’s mouth and makes them rush to the nearest KFC. In India
where chicken lovers are plenty abound these ads featuring normal people connect instantly
and create a rush at their outlets. Using the following methods KFC spreads its message of
finger licking good chicken.

Using Reminder advertisements KFC stimulates repeat purchases of its products. The company
anthem ‘finger linkin good´ is just a wakes up call to the consumer to remind them how good
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they felt the last time they ate KFC chicken. Sponsorship is another tool to strengthen an
organizations image.

Sales Promotion: All KFC outlets offer its customers with various forms of incentives to buy its
Chicken. Using coupons that one can acquire after spending a particular amount over a period
of fixed time, customers can enjoy the benefits of free meals or free add-ons. Additionally they
provide meal vouchers and exciting offers in their print ads, which the customer must cut and
bring along.

Brand Exploratory
1. Brand Competitive Analysis

You cannot enjoy the business without competitors. No organization can afford to
ignore their competitors. It is very important for a marketing managers to monitor the activities of
their competitors, what they are doing? KFC adopted such sort of strategy that there is no
competitor for spicy chicken, which is made by KFC. Always KFC beats its competitors
through the revising marketing strategy at every movement but the main competitor of KFC is Mc
Donald’s.

1. Mc Donald’s is the direct competitor for KFC since because they also offer burger
with chicken but at low cost. Subway in the way of offering subs with chicken
becomes competitor for KFC.
2. Pizza hut and Dominos also becomes competitor for KFC. Even recently Dominos
had come up with burger pizza which is the threat for KFC
3. Starbucks after emerging into India, Its major competitor was Café Coffee Day but
Starbucks become a competitor to KFC because both offers Beverages

2. Market share

3. Brand Association I Brand Image

Perceptual Map among customers states it as Junk or fun food for both kids and adult. Perceptual
Map also states KFC as high value proposition product for high price.
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BRAND INVENTORY
Brand Position

“The brand position, defined as how a brand wants its customers to perceive, think and

feel about the brand in the marketplace, is one of the single-most important aspects of building a

brand” (P.I. Reed School of Journalism, 2014a). According to Keller, “brand positioning is at

the heart of marketing strategy” (2013b, p. 51). As a company that currently operates in over

200 countries and territories, diversity and inclusion are essential to Pepsi’s growth and success

(PepsiCo, n.d.a). Pepsi continuously strives to mirror and replicate the diversity of its consumer

base to have a better understanding of its consumers (PepsiCo, n.d.a). Rather than taking an

offensive approach, Pepsi utilizes niche positioning to focus on dominating a segment of the soft

drink category (P.I. Reed School of Journalism, 2014a).

In order to effectively connect with its consumers, Pepsi recognizes that the foundation of

its success must first start with its employees. “Creating a culture of respect and trust is part of

PepsiCo's values and it's the source of our strength in the marketplace,” said Pepsi Chairman and

Chief Executive Officer, Indra Nooyi, Nooyi further explained, “We recognized early that when

we transform our business to deliver for our consumers, protect our environment, and invest in

our employees, we achieve sustained value” (Nooyi, n.d.).

To many young, active urban natives, Pepsi is the brand of refreshing non-alcoholic

beverages that offers a wide selection of products to hydrate and quench the thirst of

consumers while satisfying

taste buds with sweet and bubbly formulas. The Pepsi brand character is youthful, strong,

aggressive, hip, forward-thinking, highly reputable, and environmentally-conscious. A further

investigation of the five

distinct elements that compose Pepsi’s position are subsequently outlined.

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“We recognized early that when we transform our business to deliver

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Target Audience. As stated by Interbrand (2013) “a stronger overall focus on the

consumer experience is elevating Pepsi’s connections with consumers.” Who exactly are these

consumers that are most influenced and motivated by the Pepsi brand? As evident in many of its

advertisements and branding efforts, Pepsi has historically targeted a younger, urban audience of

single, active teenagers and young adults. The majority of Pepsi’s market is comprised of men

and women aged 16 to 45 who are typically middle class, middle income, and rural and urban

dwellers. The Business Insider suggested that “Pepsi fans are less likely to have attended college

or speak more than one language” (Horowitz, 2011). Furthermore, Pepsi has identified its

consumers as those who are interested in sports and entertainment and are proven brand loyalists.

Key Brand Benefits. According to Keller, “brand benefits are the personal value and

meaning that consumers attach to the product of service attributes” (2013b, p. 49). When

consumers are thirsty, need to placate cola cravings, or are in need a boost of caffeine, Pepsi has

an extensive portfolio of products to satisfy fundamental beverage needs.

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Brand Character. Although Pepsi is considered to be a unique challenger brand of Coca-

Cola, the company continues to position itself on the cutting-edge of the beverage industry. Rather

than continuing to be dominated and overshadowed by its competitors, Pepsi embraces an

aggressive branding approach to communicate a hip and youthful brand image to its consumers.

brand Portfolio
Table 1. Pepsi's Brand Portfolio

Current Brands of
Pepsi Cola
Pe Caffeine Free Diet Caffeine Free Pepsi
ps Pepsi
i Traditional
Caffeine free, cola without
Traditional sugar free, and the caffeine
cola taste low sodium cola
Diet Wild Cherry Diet Wild Cherry Pepsi
sweetened
Pepsi Pepsi
with real Cherry flavored
sugar calorie
Zero diet color with
cola with other natural
maximum taste flavors. Contains
Pepsi Pepsi Throwback Pepsi
Max Cherry flavored noLimejuice, sugar
Cola flavored with
cola free
Zero-calorie beet sugar instead
of high fructose
Pepsi cornDiet
syrup Pepsi
Next Lime Lime flavored cola
cola cola taste
Real Cherry flavored
with diet color with
60% less sugar other natural
flavors. Contains
Brand Meaning
no
juice, sugar free
As stated by Keller, “creating brand meaning includes establishing a brand image–what

the brand is characterized by and should stand for in the minds of consumers” (2013, p. 83).

Pepsi has worked tirelessly over the years to create a strong, unique, and reputable brand image.

The Pepsi brand is “committed to achieving business and financial success while leaving a

positive imprint on society” and

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continuously striving for an image that portrays elements of honesty, fairness, and integrity

(PepsiCo, n.d.d). Its number one competitor, Coca-Cola has positioned itself positively to focus

on and satisfy the desires and needs of its consumers while preserving an image of value and

genuineness to its consumers (The Coca-Cola Company, 2014b). While Pepsi and Coke

continue its cola battle, the Dr. Pepper Snapple Group strives to “be the best beverage business

in the Americas” (Dr. Pepper Snapple Group,

2014b). The Dr. Pepper Snapple group focuses on customers' and consumers' needs while

creating a transparent and honest brand image (Dr. Pepper Snapple Group, 2014a).

Brand Performance

Because Pepsi is a challenger brand in the beverage industry, the company must make

more diligent efforts to “ensure consumers’ experiences with the product at least meet, if not

actually surpass their expectations” (Keller, 2013c, p. 84). Pepsi currently offers a variety of

beverages its consumers want with quality and trusted primary ingredients. For its consumers,

the Pepsi website has an extensive ingredient glossary that helps explain how each essential

ingredient works together to create the perfect beverage. On the other hand, Coca-Cola has

been widely criticized for its ingredients. Prior to prohibition laws, the original Coca-Cola soft

drink had questionable ingredients such as cocaine-laced coca leaves and caffeine from the kola

nut (Nordin, 2011).

Moreover, the acidic ingredients in Coca-Cola have

been recognized as a household cleaner that has the

ability to clean toilets; remove grease stains, blood,

and rust; clean car batteries and engines; and strip

paint off metal furniture among many other uses

(Collective Evolution, 2013). Additionally, Pepsi is

making strides to include new

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supplementary features that will position its cola brands to a whole new level. In 2012, Pepsi

began the proper steps to “patent a method of encapsulating aromas within beverage packaging

to entice US consumers with ‘favorable aromas’ before they drink” (Bouckley, 2013).
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Brand Imagery

According to Keller, Brand Imagery can be defined as the intangible associations of the

brand (2013c, p. 85). Pepsi’s uses its global, prestigious, and timeless image to its advantage to

fulfill consumers’ psychological and social needs. Moreover, Pepsi has used popular and well-

known celebrities including Beyoncé, Jeff Gordon, Nicki Minaj, Britney Spears, Ray Charles,

and Sofia Vergara

to appeal to the social needs of consumers. All of the celebrities used in Pepsi’s advertisements

have fun, adventurous, and high-status appeal which is exactly the image Pepsi seeks to portray

its cola products. Rather than employing celebrities to promote its products in its latest campaign,

the Dr. Pepper Snapple Group uses real people with real stories to create a more personalized

brand image to consumers (Bazil,

2013). Often times, celebrity-endorsed brand can often take the brunt of the negative traits

associated with the celebrity; therefore, the Dr. Pepper Snapple Group’s efforts to take a more

real-world approach is highly commendable and should be considered by Pepsi for future

endeavors. Meanwhile, Coca-Cola has been making efforts to create a healthier brand image that

highlights America’s obesity issue by heavily promoting its line of reduced calorie beverages.

Brand Personality

Brands have the ability to take on human-like personalities that have the potential to

influence consumer consumption. Likewise, “Once brands develop a personality, it can be

difficult for consumers to accept information they see as inconsistent with that personality”

(Keller, 2013c, p. 87). The Pepsi’s brand has a multidimensional personality including traits of

sincerity, excitement, and adventure that

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speaks to a younger audience. As evident in many of in its commercials and print advertisements,

Pepsi is more edgy and thrilling and in tune with more active and vibrant consumers. Conversely,

Coca-Cola has captivated an older audience with its classic, honest, successful, and traditional

brand personality. Its classic and vintage appeal stems from its established early market

dominance over Pepsi as it was the first beverage company to enter the market. The Dr. Pepper

Snapple Group differentiates itself from Pepsi and Coca-Cola by taking on more wholesome and

imaginative brand personality. Known for its down-to- earth approach to marketing, the Dr.

Pepper Snapple Group continues to please cola enthusiasts across the world (Dr. Pepper Snapple

Group, 2013).

Brand Judgments

The judgments of a brand are essentially what help form personal opinions and

evaluations of the brand. Overall, the Pepsi brand distinguishes itself from its competitors with

its preeminent brand quality and esteemed credibility. Pepsi provides many flavorsome

beverages without sacrificing quality and positions its brands as superior to its competition. This

forward-thinking frame of mind can ultimately assist in consumers’ attitudes towards the brand.

Brand Feelings

As stated by Keller, “brand feelings are customers’ emotional responses and reactions to

the brand” (2013c, p. 90). All three cola companies have created unique brand feelings that

attempt to earn the trust and respect of consumers worldwide. The Pepsi brand is portrayed as

an exciting and fun company that is deeply connected to its consumers while Coca-Cola

describes its brand as joyful, warm, and friendly. The efforts made by both cola companies

evoke different feelings from consumers and many loyalists would likely agree that there is no

substitution for their preferred brand of cola. The feelings the brand provides to many

individuals serve as a sense of security and social approval.

Brand Elements
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According to Keller, brand elements are those “trademarkable devices that serve to

identify and differentiate the brand” (2013, p 114). Brand elements including the Pepsi brand

name, logo and symbol,

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slogan, spokesperson, and packaging work together simultaneously to make Pepsi stand apart

from its competitors. Table 2 is a comprehensive assessment of Pepsi’s brand elements,

comparing and contrasting to its key competitors, Coca-Cola and the Dr. Pepper Snapple

Group.

Table 2. Brand Element Comparison

Brand Coca-Cola Pepsi Dr. Pepper

Element Snapple
Brand Name Highly recognizable Highly recognizable Group
Moderately recognizable
Logos and
Symbols

Slogan “Life Begins Here” “Live for Now” “There's just more to it”
Spokesperson Real-life endorsers Celebrity endorsers B-list celebrity endorsers
Jingles Coca-Cola has had Pepsi currently uses music Dr. Pepper Snapple
the in Group
same jingle for years its commercials rather than does not utilize a jingle
despite slight a canned jingle. This can in its branding efforts
variations hinder brand association
Packaging and can and
Simple be easily
clean and decrease memorability
Sleek and modern Simple and clean
recalled by many

Brand Associations
Memorability

“A necessary condition for building brand equity is achieving a high level of brand

awareness” (Keller, 2013d, p. 115). Pepsi has a highly recognizable brand name across the

globe and is inherently memorable and attention-getting which helps in overall consumption.

The brand has successfully positioned itself in the marketplace so that the Pepsi brand name

can be easily recalled by consumers. Meaningfulness

According to Grayson (2013), the color red can be described as exciting, youthful, and

bold while the color blue is associated with dependability, trust, and strength. The colors used in
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the Pepsi logo and packaging are great indicators of the type of brand Pepsi aspires to be and

suggests the position taken by

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the company. Furthermore, the combination of colors can ultimately persuade consumers to

be able to properly identify Pepsi products.

Likeability

Pepsi’s packaging is modern and sleek and is aesthetically pleasing which helps

identify the brand, convey descriptive persuasive information, facilitate transportation and

protection, assist in at- home storage, and aids in product consumption (Keller, 2013d).

Moreover, Pepsi uses celebrities as its spokespeople which help the brand more fun and

interesting.

Transferability

Because Pepsi is a global brand, its brand elements must be able to transfer through

various cultures and regions. Pepsi’s iconic symbol and logo as well its slogan are easily

transferable within various product categories and across geographic boundaries and

cultures. All three elements work together synonymously to successfully introduce the

Pepsi brand into new markets.

Adaptability

Over the years, the Pepsi logo has adapted its image as well as its logo to aid in product

consumption (Keller, 2013d). To remain contemporary and relevant to consumers, Pepsi has

embraced change as evident in its various logo forms. Below is the evolution of the Pepsi logo

which has proven its ability to adapt over time.

Figure 1. The evolution of the Pepsi logo

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Protectability

The Pepsi brand is legally and highly protected from any unauthorized use. Its logo,

symbol, and brand name cannot be infringed by another company cannot utilize and copy either

the logo or the symbol. According to Pepsi’s website, all content on its site including design,

graphics, logos, icons,

images, audio clips, and downloads is the exclusive property of and owned by PepsiCo, its

licensors or its content providers and is protected by copyright, trademark and other applicable

laws” (n.d.)

Marketing Support Programs

For many decades, Pepsi has utilized aggressive strategies in its marketing support

programs to further increase brand awareness and recognition of the iconic brand. Pepsi

recently stated the following in its 2013 Annual Report:

“Our beverage, snack and food brands compete on the basis of price, quality, product

variety and distribution. Success in this competitive environment is dependent on effective

promotion of existing products, introduction of new products and the effectiveness of our

advertising campaigns, marketing programs, product packaging, pricing, increased

efficiency in production techniques, new vending and dispensing equipment increased

efficiency in production techniques, new vending and dispensing equipment and brand

and trademark development and protection.

We believe that the strength of our brands, innovation and marketing, coupled with the

quality of our products and flexibility of our distribution network, allows us to compete

effectively”

As Keller described, “understanding the needs and wants of consumers and organizations and

devising products and programs to satisfy them are at the heart of successful marketing” (2013a,
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p. 40). Pepsi currently organizes its marketing programs based on the four P’s of marketing:

Product, Place, Price, and Promotion.

Pepsi’s primary product is its regular cola, diet cola, and its reduced-calorie cola. Pepsi

currently operates in over 200 countries and territories and distributes its varied portfolio of

products to billions of
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customers each year. The price of Pepsi soft drinks depend on the availability and geographic

location of the products. The average price of Pepsi products can range anywhere from $.50 to

$10 depending on how the product is purchased. Small cans of Pepsi cola can be easily

purchased at a minimal cost in vending machines as well as 24 pack (cases)

for a relatively nominal cost.

Promotion

Pepsi greatly benefits from various marketing promotions including social media

campaigns, print and digital advertising, philanthropic activities, grassroots marketing, athletic

and event sponsorships as well as product sampling and its infamous Super Bowl commercials.

Competitive Environment
While Pepsi continues to focus on a more diversified brand portfolio with many leading

brands in some of the fast growing beverage categories, it recognizes that its largest competitor is

Coca-Cola. Pepsi stated in its most recent annual report that “The Coca-Cola Company is our

primary beverage competitor. Other food and beverage competitors include, but are not limited

to, ConAgra Foods, Inc., DPSG,

Kellogg Company, Kraft Foods Group, Inc., International, Inc., Monster Beverage Corporation,

Nestlé S.A., Red Bull GmbH and Snyder’s-Lance, Inc. In many markets, we also compete

against numerous regional and local companies (PepsiCo, 2013). Pepsi also recognizes that

many of its snack and food brands hold significant leadership positions in the snack and food

industry worldwide while The Coca- Cola Company has significant carbonated soft drink (CSD)

share advantage in many markets outside the United States” (PepsiCo, 2013).
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Coca-Cola

Pepsi’s primary and longstanding competitor is Coca-Cola. Coca-Cola is the world's

largest beverage company and currently dominates the beverage industry as the market leader.

The Coca-Cola brand portfolio includes over 3,500 beverages and 16 major brands. Its classic

reputation, longevity, and success are key factors that rival many of its competitors. Coca-

Cola’s consumers span over 200 countries and enjoy its expansive product line consists of diet

and sparkling colas, fruit juices, water, sports drinks, tea, and coffee (The Coca-Cola Company,

2014a).

Market Share
Over the years, Coca-Cola has endured consistent, long-term growth and continual

dominance in the American beverage industry with 42.4% market share (Blanc, 2014). As a

challenger brand, Pepsi has made great strides to control a large portion of the market share.

Although Coca-Cola owns the majority of the market share, Pepsi currently captures 27.7% of the

market share. Moreover, data from Beverage

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Digest suggest that the Dr. Pepper Snapple Group currently operates with the third lowest

percentage of market share at 16.9% (CNBC, 2014). A summary of this data are outlined in

Figure 2 All three brands vigorously compete against one another and continue to battle for a

larger portion of the market share. In short, Pepsi is in a great position to increase market share

to closely rival Coca-Cola while the Dr. Pepper Snapple Group will likely trail further behind.

Points-of- Parity and Points-of-Differences

The points-of-parity and the points-of-difference help differentiate Pepsi from its main

competitor, Coca-Cola and its second rival, the Dr. Pepper Snapple Group. A comparative

analysis of each of these parities is outlined in Table 3 below.

Table 3. Points of Parity and Points-of Difference

Brand Cola-Cola Pepsi Dr. Pepper Snapple Group

Name
World’s largest World’s second World’s third largest
Points- cola largest cola
of- company
Strong brand history Refined cola
brand history company
Established brand history
Parity Classic brand image company
Modern brand image Simplistic brand image
Cola is not as sweet Sweeter tasting cola Spicy tasting cola with
Points-of- with with fruit
Difference vanilla brand
Extensive and acidic
portfolio Iconic citrus
and relevant undertones
Diverse brand portfolio
s undertones undertones
brand
Associated with Portfoliowith
Associated Associated with
happiness adventure and fun eccentricity
and joy and
uniqueness
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Brand Hierarchy
Pepsi’s primary brands include several variations and flavors of cola including Pepsi,

Diet Pepsi, Pepsi Max, Cherry Pepsi, Diet Cherry Pepsi, and various limited edition flavors.

Pepsi’s current primary brands come together to offer unique and refreshing colas that appeal to

a broad audience. Moreover, Pepsi’s extended sub-brand portfolio includes a variety of

beverages including Mountain Dew, Gatorade, Sierra Mist, Aquafina, Tropicana Pure Premium,

AMP Energy, Propel, Mug, SoBe, IZZE, and Naked Juice (PepsiCo, n.d.b). All of Pepsi’s

brands cater to different market segments and rarely cannibalize each other’s sales. Figure 3

below is an illustration of Pepsi’s brand hierarchy.

Figure 3. Pepsi Brand Hierarchy

PepsiCo

Primary Pepsi
Secondary Colas
Colas

Pepsi Cola Diet Pepsi Cola Pepsi Max Sierra Mist Mug Root Beer

Energy Juices and Other

Beverages Products

AMP Energy Aquafina Propel

BRAND EXPLORATORY
Brand Position

To many young, active, minority/urban adults, Pepsi is the brand of soft drinks that

offers refreshing, sweet tasting cola to provide a quick pick-me-up during a busy day.

Consumers generally think of the Pepsi brand character as exciting, fun, unique, youthful,

hip, and fresh. Although, Pepsi

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currently operates in over 200 countries and territories, some consumers have the perception

that the brand has a regional feel. Based on qualitative research conducted with students at

West Virginia University, the mental map in Figure 4 below “accurately portrays in detail all

salient brand associations and responses” for Pepsi’s target market (Keller, 2013e). Moreover,

there are five distinct elements that compose a brand’s position including target audience,

category need, key brand benefits, motivation for purchase/selection/loyalty, and brand

character (P.I. Reed School of Journalism, 2014b). A comprehensive analysis of these elements

from the consumers’ perspective are subsequently outlined.

Figure 4. Pepsi Mental Map

Target Audience. Millions of consumers across the world are subjective and inspired

by the Pepsi brand. Research conducted at the West Virginia University with a sample size of

13 individuals indicated a clear demonstration of Pepsi’s target audience. The consensus was

that mostly younger Caucasian women aged 18 to 35 who primarily inhabitant urban areas

preferred Pepsi cola over Coca-

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RECOMMENDATIONS
The following recommendations will enable the Pepsi brand to achieve and sustain

market success. Recommendations include expanding the brand’s product portfolio and

consumer’s knowledge of the new products, incorporating real-life/ non-celebrity endorsers to

promote the products and the brand, creation of a memorable jingle that will resonate with

consumers as well as increased participation in close-knit community events. Additionally, as

the popularity of social networking sites continues to grow, Pepsi will need to ensure its efforts

across all social media platforms are maintained continuously.

Lastly, implementing a rewards program for consumers to earn points towards future purchases

will aid in consumer retention and help with product consumption.

Anything that Pepsi can do to improve the lives of its consumers or make purchasing

habits easier should be at the forefront of all decision making. The overall goal of accomplishing

the aforementioned recommendations include increasing brand awareness, recognition,

memorability, and ultimately create a stronger brand image. It is also highly recommended that

the Pepsi brand maintain the highest level of integrity, respect, and dignity when improving its

brand position in the marketplace.

CONCLUSION
Pepsi is a unique challenger brand to Coca-Cola and has the potential to continue to be a
market leader in the cola industry. Pepsi’s strong, aggressive, hip, forward-thinking,
highly reputable, and
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environmentally-conscious brand personality will enable the brand to sustain its current

consumers and open the door for new consumers to enjoy its diverse product portfolio.