PEPSI MEDIA planning and buying

 Brief History

Pepsi was originally known as “Head’s Drink” in New Been, North Carolina. Cakes Bradhham invented
the drink From his home in 1898. Bradham originally invented the fountain drink to help aid digestion
and boost energy. It was later named Pepsi cola, possibly due to the digestive enzyme pepsin used in the
recipe.

In 1903, Bradham moved the bottling of Pepsi- Cola from his drugstore to a rented warehouse where he
said 7,968 gallons of syrup. The next year Bradham sold Pepsi in six-ounce bottles, which drastically
increased the sales increased to 19,848 gallons.

During the Great Depression in 1931, the Pepsi-Cola company entered bankruptcy due to the fluctuating
sugar prices during world war 1. Right years later, the company went bankrupt again. Consequently, the
President of Lift Inc. Charles Ruth, purchased the company’s assets. Loft was a candy manufacturer who
owned retail stores that contained soda fountains . He sought to replace coca Cola at his stories fountain
after refused to give his a discount on syrup.

 Competitor Analysis

Coke: Coca-Cola also known as coke, is a carbonated soft drink that is sold in more than 200 countries
throughout the world. It is produced by the Coca- Cola company, which is based in Atlanta, Georgia.
Coca-Cola was invented in the late 19 th century by John Pembertin, and was intended to be a patent
medicine. However, businessman, As a Griggs Sandler, bought out Coca-Cola and helped it dominate the
world soft-drink market throughout the 20 th century. The Coca-Cola company produces the coke
concentrate, which is then sold to bottling companies, major restaurants and food service distributors
throughout the world. Today, Coca-Cola is still places first in the soft drink market in the United States.

Diet Coke: Diet coke, also owned by the Coca-Cola company, is a sugar-free soft drink, which was first
introduced in the United States in 1982. It is sweetened with aspartame, an artificial sweetener.
However, there is another version of Diet coke that is sweetened with Splenda. Contrary to popular
belief, Diet Coke does not use a modified from of the Coca-Cola recipe, but uses an entirely different
formula. Diet coke currently is tied with Pepsi for second place in the market share.

 Nature of products

Pepsi

• Carbonated Water

• High Fructose Corn Syrup

• Caramel coloring

•Phosphoric Acid

• Caffeine

• Citric Acid
• Natural Flavoring

• 150 Calories per 12 oz. Can.

 Swot Analysis

Pepsi

Strength

•Second in the market for soft drink brands

•Brand Strength

•Effective stride in New markets

•Diversification

•Distribution

Weakness

•Reliant upon line extensions

•Reliant upon particular carbonated drinks

•Saturation of Carbonated soft drink segment

• Overdependence on U.S. markets

Opportunities

• Brand is attractive to global partners

• Increase market share through advertising/ Sponsorships

• International expansion

Threats

• Strong Competition

• Potential Heath issues

•Concerns of obesity

• Sluggish growth of Carbonated beverages

 Marketing objectives:

Pepsi is doing well, it is the beverage Pepsi we are concerned about. Overall, we would like to increase
market share by 2.5 points, from 9.9% to 12.4% (about a 25% increase). Also, while overtaking Coca Cola
at the number one spot would be ideal, it is not a reason-able goal. However, we do want to maintain
our number two position and avoid having our spot taken by Diet Coke.
  Target audience

Media selection:

Tv and radio will be the most effective medium to reach our targeted audience. Another choices will be
internet, outdoor, magazine and newspaper. However now a days youth prefer internet so this medium
we intend to use to reach our targeted audience.

Demographic selection:

Region: All over the world.

Gender: males, females, youth

Age: no restrictions above 18

 Marketing mix strategy:

Product: Pepsi is the cola offered in the can, bottle or as a fountain beverage. Pepsi is usually a thought
of as sweeter than coca cola.

Place: Pepsi operates 700 manufacturing plants world wide and operates about 100,000 distribution
routes directly or through our bottlers worldwide and serves approximately 10 million outlets on the
regular basis.

Price: Pepsi is an affordable treat like all sodas.

Promotions: Pepsi constantly has several promotions on TV ads, digital media etc.

 Media strategies:

Through our campaign, we plan to achieve our objective goals of increasing our market share by 2.5
points, from 9.9% to 12.4% (or 25%) and preventing Diet Coke from taking our second place spot. We
feel that a near $10 million increase in our budget from $40.1 million to $50 million(a 25% budget
increase) will be sufficient in obtaining our goals. Again, this is the most reasonable market share
increase. While overtaking Coca-Cola lead in market share would be great, this is not a realistic goal.
Based on numbers researched that will be presented over the following pages, we have determined
several means of obtaining our goal. We intend to focus on our targeted audience. We have set specific
goals for this demographic varying from month to month. We also intend to focus our advertising efforts
more heavily in particular areas of the country based on the likelihood of one consuming Pepsi-Cola or
any other brand of regular cola in these regions.

Also, we intend to reach this particular audience through multiple mediums. This include radio internet
campaign, continuing our strong TV advertising presence and maintaining a presence in both print
mediums of Newspaper and Magazine. Our new tactic diverts from traditional Pepsi advertising strategy
of almost strictly Television campaigns.

Our new campaign will feature heavier weights in different quarters of the year. The second quarter
April through June, is a Traditionally strong quarter for Cola products as the weather is warming up. Our
campaign will weigh heavily on this quarter not only due to the weather warming up, but also to get the
campaign rolling for the summer. Our second heaviest quarterly weight is the fourth quarter. This time
of the year the football seasons are beginning to come to head, leading to higher sales in snack foods.

 Scheduling:
Pictures!!

 Media Mix

Tv

TV is an excellent medium to advertise Pepsi with the maximum amount of reach and frequency. TV is
proven to be an effective medium to advertise because of its flexibility, cost efficiency in reaching mass
and selective audiences as well as combining sight and sound for active, lively selling.

Radio

Our target audience’s second highest quintile medium was radio, indicating that our target audience is
more likely to listen to the radio than to read the newspaper or a magazine. For this reason, we plan to
devote more of our budget to radio advertising. This medium is effective for several reasons: advertisers
are able to reach specific kinds to target audience’s according to certain stations, there is a high level of
frequency, it is excellent for consumers on the go, there is an extremely high summer exposure and it is
flexible.

Internet

The internet is a very cost efficient and low cost medium for advertising which is why we are
incorporating into our media mix. Also, while our targets do not have very high index numbers with the
internet, it is well known that younger people are more heavier users of this medium. Benefits of using
such a service include its low cost, easy measurement of effectiveness, interactive qualities and ability to
provide supplemental information. For these reason, the internet would be a wise choice for any
advertiser.

Newspaper and Magazines

In efforts to expand our brands reach and frequency we are adding print advertising to the Pepsi media
mix. Benefits of using the newspaper are as follow: There is less competition on Sundays, typically high
readership, much flexibility, and broadened coverage area. A second print opportunity presents itself
with magazines, Advertising in magazines is highly effective because they provide selectively of
audience, reach light TV views, contain long-lived ads, have a large pass along audience and provide
controlled circulation

 Creative strategy:

According to our targeted audience we thought that we should take a known celebrity for our
advertisement. A celebrity like Imran Abbas, mahira khan who is popular among youth males and
females will be the best choice to be the face behind Pepsi’s new campaign.
Our campaign will has a humorous theme, featuring Imran Abbas stumbling across various people in
awkward situation and stopping to offer them his Pepsi rule of thumb for said situation. Awkward
situation: you are on a date at the beach with a girl you have wanted to ask out for the years and finally
the moment is here. Except you get stung with a jellyfish while playing in the water, and suddenly burst
into tears in front of your date. You are mortified. In steps Imran Abbas with a Pepsi rule of thumb,
saying, “When you've already started the water works, don’t try to play it cool and turn into a tough guy,
because clearly you're not. Instead, work the sensitive side you've got. Girls dig guys who show emotion.
Grab a Pepsi out of the ice chest and take a swig to calm you down. Then suggest to your date that she
sooth your wound with the cold Pepsi can. She will live taking care of you and secretly you will be
thankful for that jellyfish that tried to ruin your dream date. Nice try jellyfish nice try.

This campaign will be effective because it can be utilized across all the different mediums we Plan to use.
Our campaign will start in the second quarter, featuring spring and summer situation such as a beach or
pool parties.