Name:

loay hazem 17101225 phone:01276277521 email: loayhazem930@gmail.com

(leader)

Nabil sherif 18100123

Abdelrahman shalaby 15105378

Marwan mostafa abaza 13101151

Abdulkarim alattar 17101937

Bassem nossir 13100730

Pepsi

Global marketing
  Marketing mix:

The marketing mix of PepsiCo has changed over time, primarily due to the impact
of mergers and acquisitions. The marketing mix or 4Ps (Product, Location,
Promotion & Price) is a mixture of strategies and tactics used by the organization
to execute its marketing strategy. In this regard, PepsiCo employs a range of
techniques and methods focused on its selection of products and brands.
Differences between markets often include differences in the methods used in the
marketing mix.

Despite these variations, however, PepsiCo's marketing mix has a range of general
characteristics that characterize the company's general corporate approach to
executing its marketing strategy. In this respect, PepsiCo remains efficient and
globally competitive
PepsiCo’s Products

This marketing mix feature describes the organizational outputs made available to
customers. PepsiCo started out as the Pepsi-Cola Company, with all the original
products under the Pepsi name. The following are the latest PepsiCo product lines:

1. Soft drinks

2. Energy drinks

3. Cereal

4. Rice snacks

5. Snacks

6. Side dishes

7. Breakfast bars
8. Sports nutrition

9. Bottled water

10. Other merchandise

Pepsi cold drink is the primary product of Pepsi Co's Carbonated Soft Drink
Business. Pepsi is the leading product in the field. The goods in the Pepsi
marketing mix are primarily carbonated drinks, fruit juices, snacks, etc. Other soft
drinks aside from Pepsi are others like Mountain Dew & 7up. They've got a
different target client. The company has also ventured into the areas of chips and
wafers such as Lays, like: Cheetos, which are carters in the different parts of the
company.

 Place/Distribution in PepsiCo’s Marketing Mix

PepsiCo uses a global network to sell its goods to customers. Venues for
distribution and sale are known to be part of the marketing mix. The locations for
distribution of PepsiCo are as follows:

1. Retailers

2. Online merchandisers

 Pepsi and its products are available in more than 200 countries around the
world. The locations where Pepsi goods are distributed are primarily areas
where targeted consumers can be found. The CSD is accessible all over the
place. The distribution strategy in the Pepsi marketing mix focuses on the
global distribution partnership and vast network of retailers, grocery stores,
restaurants, supermarkets, etc. Pepsi drugs are easily and easily accessible to
all people.
  Pepsi Price/Pricing Strategy:
1. The price in Pepsi’s marketing mix will only be full after researching the drinks, snacks, and other
items that the company sells.
2. CSD is priced differently depending on the market and the client's portfolio.
3. They have different types of bottles offered at different prices.
4. This is priced based on the quantity of drinks served.
5. The promotion is also done keeping in mind the target customers.
6. PepsiCo's Tropicana drinks prices are a little higher because they are aimed at people who are
well aware of their health.

 PepsiCo's prices differ greatly, as the company has a diverse product mix,
which means that it has a large variety of product lines and labels.
Approaches used to set prices are analyzed in this marketing mix feature.
The key pricing methods of PepsiCo are as follows:

1. Market-oriented pricing strategy.

2. Hybrid Everyday Value pricing strategy.

Many PepsiCo goods are priced on the basis of a market-oriented

pricing approach. The aim of the company in the implementation of
this strategy is to ensure that its prices are competitive, based on the
prices of other companies and the prevailing market conditions.

 Pepsi Promotion & Advertising Strategy:

 The key focus of Pepsi's food goods was on youth and the family.

The marketed CSD is directed at young people.

The promotion is also rendered in that format.

They are marketed through the use of famous movie stars or well-known faces so
that people can easily relate to each other.

Pepsi's marketing campaign uses all available advertising outlets such as TV,
print, outdoor, web advertisement for 360 degree branding.

Pepsi has sponsored major events such as soccer World Cups, cricket, etc. all over
the world, apart from promoting global lifestyle events, music.

They also have a high and efficient promotion strategy for all the chips that Lays
have. As a multinational brand of soda & snack, Pepsi primarily targets the media
to make their presence known on the market.

Lipton is offered to the upper end of the customer.

The brand Tropicana is also aimed at fitness-oriented people.

People who also prefer safe drinking alternatives also prefer these items.

They therefore promote in a way that attracts people who are health conscious and
others who are interested in getting nutritious food.

Pepsi has also partnered with global brand ambassadors who are film stars,
prominent sports figures, etc. This summarizes the marketing blend of Pepsi.

 Life cycle of Pepsi:

 The Introduction:
Brad started selling Pepsi-Cola and sold 7,968 gallons of syrup in the first
year.
1. Objectives: Brad's goal was to build an initial understanding and
trial of his product, and far surpassed his goals
2. Product: Only a simple product was introduced – Pepsi-Cola was
initially marketed without bottles. Instead the substance was distributed
by soda fountains in Brad's pharmacies.
3. Price: A straightforward cost-plus pricing approach was initially used.
Pepsi-Cola is likely to begin with a skimming strategy to rapidly recover
start-up costs.
4. Place: Initially, highly limited distribution is advised, and this is
evident from the Pepsi-Cola launch only in Brad's pharmacies.
5. Advertising:  A celebrity endorsement of race-car driver Barney
Oldfield (above) was used to raise awareness.
6. Sales-promotion: Pepsi-Cola has not been released with any
promotions. However if promotions are used at this point, the goal
should be to inspire customers to test the product.
  Growth:
After bankruptcy and the purchase of Loft Inc., Pepsi-revenues Cola's
skyrocketed in the great depression. Consumers were drawn by value-for-
money competitive positioning: 5 cents can buy 12 ounces of Pepsi-Cola to
consumers, but just 6 ounces of Coca-Cola.
1. Objectives: It is crucial to gain market share during growth. As a
result, Pepsi-Cola was vigorously promoted against Coca-Cola to
persuade customers to defect.
2. Price:  In order to help the goal of gaining market share, the low-price
penetration strategy was one of the main reasons for the brand's
massive growth in this period.
3. Place:  An comprehensive distribution network is required to sustain
rapid sales growth; thus, exclusivity to pharmacies has ended and the
product has become a mainstream consumer product.
4. Advertising: It is crucial to catch the early majority level, requiring
ads to be structured to efficiently reach a mass audience. For example,
Radio was chosen as a medium because of its low cost per spectrum –
click here to listen to an ad from the 1930s! During this time, the name
was changed to 'Pepsi' to better distinguish the brand from Coca-Cola.
Finally, the 1975 Pepsi Challenge ad campaign was so successful that it
nearly killed the Coca-Cola brand.
5. Sales-promotion: Owing to the immense popularity of the drink,
no marketing promotion was used, considering that the price was
already extremely competitive and the business was struggling to keep
up with demand.
  Maturity:

Since the 1980s, Pepsi has been at the maturity stage of the product life cycle,
allowing the parent company to gain almost $20 billion in annual sales.

1. Objectives: At this point, the items are most lucrative, which is why PepsiCo
is likely to regard Pepsi as a cash cow, seeking to make as much profit as
possible from the brand.
2. Product: Now that the product is well known, whole ranges can be added
that serve as extension strategies to extend the most lucrative period of the
product's life. This includes the highly popular Pepsi Max, the terrible Pepsi
Raw.
3. Price: PepsiCo and Coca-Cola definitely do not want to join the price-wars,
which is a high risk at this very competitive level. As a result, costs seldom
fluctuate away from the market average.
4. Place: The brand now has a global distribution for emerging economies to
penetrate.

5. Advertising: During maturity, the key goal of Pepsi's ads is to

distinguish the brand. This was primarily done by the use of celebrity
endorsements – such as Beyonce and Michael Jackson – to place the
beverage as a younger and more sophisticated alternative to Coca-Cola. 
6. Sales-promotion: In order to stay aligned with the value-for-money
positioning of the brand, Pepsi also has both value-added and value-
added deals. An example of the former is that it sells larger bottle sizes –
even today – than Coca-Cola; and the latter can be seen in the
competitions marketed on Pepsi's bottles.
  Decline:

Despite rising consumer interest in healthy lifestyles, sales of Pepsi do not

show any signs of slowing down in the near future. Notwithstanding this it is
recommended that Pepsico be prepared to adopt the following strategies in
the event of a downturn in the product.
1. Objectives: Cost control is the key at this point to help the brand stay
successful despite the fact that it produces less revenue.
2. Product: The range can be simplified and could be limited to just Pepsi
to maximize economies of scale and lower expenses.
3. Price: The price could be further reduced in order to maximise sales
among price-sensitive customers and to be an effective publicity guide
for this low-level product.
4. Place: The brand is now returning to limited distribution to concentrate
its attention on the few remaining outlets that produce profits for Pepsi.
5. Advertising and Sales Promotion: It could be proposed that PepsiCo
should go as far as fully cutting advertisements and sales promotion to
further minimize overheads.
  BCG MATRIX OF PEPSI:
Stars:
In the case of Pepsi falls into the Star Quadrant of the Pepsi BCG Matrix

Over the years, Pepsi has faced intense competition from Coca-Cola and has also
seen its market share hit.

The organization must spend millions of dollars on brand awareness and marketing
in order to retain its market share.

Question mark:

Diet Pepsi was introduced with the goal of helping PepsiCo recover its market
share but failed to capture the desired response from consumers and one of the key
reasons for this was intense competition from Diet Coke.

Cash cow:

Frito Lays leads the U.S. market for snacks with a market share of 36.6 percent.
The next largest producer in this industry is Kellogg's with a slightly smaller share
of 7% and 5.6% respectively.

Dogs:

Pepsi – Seeing Pepsi in Dog quadrant would shock a lot of people, but given the
current and potential situation, Pepsi will see a change from Star to Dog quadrant.
  SWOT analysis:

Pepsi is the second largest beverage maker, and Pepsi Companies stand tall with
revenues of $ 16.09 billion, Soda has become more or less saturated in the market
and Pepsi has tried various changes to its business models to reach the top.

 STRENGTHS:
Strengths describe the factors at which an organization is good at and what
sets it apart from its competitors.
1. Strong Brand Image:
PepsiCo has a strong branding and brand recall, and these
factors help the brand to maintain constant pressure on its
competitors.
PepsiCo invests significantly in advertising and
marketing that complements branding and brand
awareness enhancement.
2. Loyal Customer Base:
Pepsi has a huge loyal customer base, while Pepsi is the
first and only choice for consumers who love its taste.
3. Global Presence and Strong Supply chain and Distribution
Network:
Over the years of its existence, Pepsi Corporation has
built a strong supply chain and distribution network.
Present in more than 200 countries, it is only because of
the strength of the supply chain and distribution network
that you can have it even in the most remote places in the
world.
4. Strong Product Portfolio:
Pepsi Company owns and distributes a wide range of
branded products.
Unlike Coca-Cola which is still a beverage company,
Pepsi has diversified its product portfolio, merged with
Frito-Lay and owns Quaker Oats, Tostitos and other food
brands.
  WEAKNESS:

It is an analysis tool to prevent an organization from performing at an optimum

level. They are areas where the business needs to improve to remain competitive.

1. Reliance on Carbonated drinks:

In developing countries, health-conscious consumers are
turning to soft drinks that contain high levels of sugars or
artificial sweeteners.
All these factors silenced the growth of the beverage
industry.
The heavy reliance on sweet fizzy drinks is what is
affecting the Pepsi top streak and will need immediate
course correction.
2. Weak Product portfolio containing healthy beverages and
foods:
Consumer’s needs and requirements change and shift
towards healthy drinks and foods. Like sport drink

 THREATS:
Indicate the factors that are likely to harm an organization in the future.
Looking at the truth, threats to the brand give a far sighted view of the
problems the brand is likely to face in the future.
1. Reducing consumer need/demand for carbonated drinks:
 As times change, consumers are ditching sweetened soft drinks and turning
towards healthier and energy drinks.
 This change is likely to affect PepsiCo's sales as major parts of its sales
come from soft drinks.
2. Heavy Competition from Global and Local players:
 Coca-Cola isn't alone in getting competition from Pepsi,
it isn't. Of local beverage manufacturers trying to shed
Coca-Cola's market share.
Companies like Starbucks and Dunkin Brands Group that
are not direct competitors to Pepsi, but have managed to
negatively impact the company's market share.
3. Weak Product portfolio:
To meet changing customer needs, Pepsi has introduced
products or brand aims at met the customer’s needs.
The need for the watch is aggressively advertised and
marketed in order to create brand awareness and brand
recall.

 OPPORTUNITIES:
It Refer to the factors that the organization can use to its advantage to
increase market share, sales, and brand recognition
1. Increasing demand for healthy drinks:
The demand for healthy drinks and foods is still in its
infancy stage and it is steadily increasing, and the need of
the hour is to take advantage of this opportunity and seize
the maximum share in the market.
2. Partnerships:

Pepsi might consider increasing its market share by

partnering with other non-competing brands. An example
of this is Coca-Cola has a strong partnership with
Domino’s pizza.
o Conclusion of SWOT analysis of Pepsi:
1. The number of challenges facing Pepsi is abundant, and this
company holds a great deal of promise for the future.
2. The company has a strong brand and loyalty; it's just the
opportunities it needs to outrun its competitors.

 The environmental text of Pepsi:

There are 3 major’s areas of interest in environmental sustainability text for
Pepsi are as the follows:
1. Reducing water use through conservation, use and regeneration, as
PepsiCo Egypt uses innovative technologies, including recycling
water for plant maintenance, irrigation with wastewater, and rising of
air bottles. The goal is to use proactive action plans to improve water
supplies in communities suffering from water scarcity.
2. Reducing greenhouse gas emissions by conserving energy layers and
using clean energy investments Pepsi is constantly improving
processes to reduce energy use, by actively participating in renewable
energy projects.
3. Reducing, recycling and reusing packaging and solid waste as PEPSI
tries to maintain Global packaging policy by saving plastic
consumption of over a million pounds by manufacturing lightweight
beverage containers.
 brand equity

independent
brand activation
dependent
global
marketing
innovation

brand loyality
Literature Review:

Brand equity:

• The concept of brand equity has received much attention recently. We define
brand equity as the "added value" with which a given brand endows a product (cf.
Jones 1986; Leuthesser 1988)

• Brand equity from an individual consumer's perspective is reflected by the

increase in attitude strength for a product using the brand. An attitude is defined as
the association between an "object" (e.g., the branded product) and the
"evaluation" of that object stored in an individual's memory (Fazio 1986)

• has been recognized that a firm’s real value lies outside the business itself: in the
minds of potential buyers. (Aaker 1996; Pearson 1996; Ind 1997)

Brand activation:

 Brand activation resulted by enhancing the bond with consumer creating a

platform by allowing consumer to experience the brand in an interactive
manner (Saeed, Author, Zameer, & Ahmad, 2015)

 Brand Activation arose in the field of Marketing and Communication as a

mechanism of consumer experience enhancer (Liembawati, Dharmayanthi,
Karina, Pemasaran, Petra, & Siwalannkerto, 2014). According to Alberts
(2009)
 brand activation is also referred as a strategic and tactical face that enables
customers experiencing brand engagement (Saeed et al., 2015)

Innovation:

 A brand is likely to have an impact on customer behavior toward

purchase by way of offering innovative products that contain unique
characteristics compared to other brands (Andrews & Kim, 2007;
Shiau, 2014)

 A brand is just like a story, being a key to drive cultural logic,

establishes the continuity and association to have every new concept
added to a brand’s benefits and make the brand alive in the hearts of
people." The author suggested that brand innovation introduces
favorable novel concepts to an established brand(defined by Grant
(2006))

 innovation is associated with improved product quality, promoted

brand image and greater customer loyalty (Ottenbacher & Gnoth,
2005)

Brand loyality:

 The behavioral brand loyalty is perhaps the most common type

of brand loyalty which has been often suggested in consumer
psychology and marketing by the proponents of the hierarchy-
of-effects models (Howard and Sheth 1969, Lavidge and
Steiner 1962, Sheth 1970, Colley 1961

 Loyalty implies satisfaction, but satisfaction does not

necessarily lead to loyalty. Consequently, there is an
asymmetric relationship between loyalty and satisfaction
(Waddell, 1995; Oliver, 1999)
  We define brand loyalty as a positively biased emotive,
evaluative tendency toward a branded graded alternative by an
individual in his choice maker.(Engel, Blackwell and Kollat
1973; Howard and Sheth 1969; Day 1969; Jacoby 1971)

Research type Basic

objective Descriptive
Time frame Longitudinal
sample
Level of Minimal
interference
Study setting Non-contrived
Unit analysis

Management decision problem:

The company specializes in the production of soft drinks of various
brands. However, the company diversifies its production into other
related products such as bottled water, salty and even snacks made
with whole grains. This diversification has greatly increased sales and
thus increased the company's gross profit worldwide.

Marketing research problem:

Pepsi-Cola is a brand that has been in the refreshment industry since
the 19th century
PepsiCo is proud to trade in consumer products in beverages and
snacks, as one of the best in the world.

Conceptual definition:
1. Attractiveness:
Attractiveness is a concept that originated in the field of interpersonal
psychology, where it describes a positive attitude or orientation
towards other people. It is based on individual expectations and is
hence also subject to social trends [Umberson & Hughes 1987].
Evolutionary approaches of attractiveness measurement emphasize the
importance of individual traits in this context [Gangestad & Scheyd
2005]. Often researchers measure attractiveness by a simple
confirmatory approach which is called truth-of-consensus-
methodology [Donovan et al. 1989]. The test subjects are required to
evaluate the level of attractiveness and inter-coder reliability is
controlled. Attractiveness as a psychological construct has an effect
on self-perception as well as behavior like social interaction [Langlois
et al. 2000].

2. Trustworthiness:
Definition of trustworthiness in the academic literature commonly
assume that one party trusts another based upon the second party’s
trustworthiness (Bews and Rossouw, 2002; Schoorman et al., 2007;
Dirks and Ferrin, 2002). Such trust assumes the existence of an
exchange relationship or social contract based upon the belief that
mutual cooperation benefits both parties (Mayer et al., 1995).
Donaldson and Dunfee (1999) have noted that the social contract
imposes a binding set of ethical obligations between parties, and in the
trust relationship this social contract involves a willingness on the part
of a follower to risk (Mayer et al., 1995), based upon an expectation
that the other party will honor the ethical duties of the implied social
contract existing between the parties (Caldwell et al., 2008). Although
the nature of the trust relationship in the social contract is frequently
economic (Dunfee, 2006; Hosmer, 1995), the expectations of the
parties are often implied rather than precisely stated (Rousseau, 1995).

3. Expertise:

1- Expertise can be defined as the perceived ability of an endorser

to make or provide valid assertions. It includes the knowledge,
 experience and skills developed by the endorser while working in the
same field. The perceived expertise of celebrity endorsers is more
important than their attractiveness and trustworthiness in influencing
purchase intentions. Expert celebrities are found to be more
persuasive and may influence the consumer buying decision source
expertise can act as a central persuasion under certain conditions
(Mansour and Diab 2016)
2- Expertise is the extent to which a communicator is believed to
be a source of valid assertions. Trustworthiness is the degree of
confidence in the communicator’s intent to convey the assertions that
he/she considers most valid. Therefore the effectiveness of a message
also depends on the attractiveness of the source, which is driven by
familiarity, likeability and similarity has developed a three-
dimensional scale for measuring endorsers’ credibility that consists of
the expertise. (toivonen 2016)

Operational definition:
Attractiveness:
It is an important combinatorial improvement problem related to the
optimization of methods to be used by a fleet of vehicles to serve a
group of clients
(See, Toth and Vigo).
There is a goal that has been considered in the literature and it is
called visual appeal of the methods. Although there is a precise
definition of visual
Gravity is not easy to determine (see Constantino et al.), several
authors define this subjective concept by a set of features that the
paths should exhibit:
o Compact
o not overlapping
o not complex
 Trustworthiness:

Better use of existing internal knowledge is seen as essential to the survival and
prosperity of organizations. This recognition has spawned substantial interest in the
factors that influence the transferability of experiential learning embedded in
organizational practices to new settings (Nelson and Winter 1982, Baum and
Ingram 1998, Argote 1999, Haleblian and Finkelstein 1999). An important factor
in this respect is the perceived trustworthiness of the source of knowledge.

Expertise:

It is a widely held view that experts’ contributions add value to warnings and
information to stakeholders.

Research Objectives:

1-to understand the relationship between brand equity and global marketing

2- To understand the relationship between brand activation and global marketing

3- To understand the relationship between innovations and global marketing

4- To understand the relationship between brand loyalty and global marketing

Research questions:

 What is the relationship between brand equity and global marketing?

 What is the relationship between brand activation and global
marketing?
 what is the relationship between innovations and global marketing
 What is the relationship between brand loyalty and global marketing?
Research Hypothesis:

H1: there are a positive relationship between brand equity and global marketing.

H2: there are a positive relationship between brand activation and global
marketing.

H3: there are a positive relationship between innovation and global marketing.

H4: there are a positive relationship between brand loyalty and global marketing.