Assignment topic: A marketing plan for Pepsi.

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).

Submission Date: 18.08.2014.

 Letter of transmittal

To
MD. Safayet Mansoor.
Lecturer of BBA department.
Daffodil International University
Subject: Submission of report.
Dear Sir,
It is great and immense pleasure for us that we have the opportunity to
submit the report on” A marketing plan for Pepsi”. As part of our BBA
course requirement, we have prepared this report on the basis of the
knowledge we gathered from our knowledge and we like to express our
sincere gratitude to you for your continuous support and guidance.

We have concentrated our best efforts to achieve the objectives of the

study and hope that our endeavor will serve the purpose. However, we
will always be ready to provide any further clarification that you may
require.

Sincerely yours

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

 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
Pepsi’s 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:

Number Topic name

1 Letter of transmittal
2 Acknowledgement
3 Executive summary
4 Table of content
5 Product overview
6 Creating and capturing customer
value
7 Analyzing the marketing
environment
8 Segmenting, targeting, positioning
9 Brand strategies
10 Distribution management
11 Integrated marketing
communication
12 Recommendation
13 Conclusion
14 Bibliography
15 Appendix
 Product overview:

Pepsi is a carbonated soft drink that is produced and manufactured

by PepsiCo. Pepsi was first introduced as "Brad's Drink" in New Bern,
North Carolina, United States, in 1893 by Caleb Bradham, who made it
at his drugstore where the drink was sold. It was later labeled Pepsi
Cola, named after the digestive enzyme pepsin and kola nuts used in
the recipe. 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.
 Capturing Customer Value:

Marketing Myopia:

Myopia is a refractive defect of the eye in which light produces image

focus in front of the retina when the sight adjustment is off balance. In
the case of Pepsi, it only focuses on the demand of the product and try
to improve it. But it doesn’t focus on the other demand of consumers.

Value Proposition of Pepsi:

Pepsi follows winning value propositions like “More for less”, “The
same for less” or “More for the same”. Pepsi has its products from low
price to high price. It depends on the quantity. Where their 250 ml
bottle is almost 20 tk on the other hand their 2 ml pet bottle is almost
90 tk. They are giving their product in a very reasonable price and in
different orientations so that their target customers can afford to have
it. In every occasion Pepsi brings special offers. Like, they reduce the
price; give extra quantity of drinks in the same price thus they follow
the three winning value proposition. It depends on market situation
and competitor that what strategy they will follow.

4Ps:

 Product:

A product (in Pepsi's case, a popular soda drink with cola flavoring)
must appeal to the marketplace and deliver taste to consumers.
  Price:

The second element, price, is all about offering a product for an

appealing price - one that still allows PepsiCo to make a tidy profit
from the sale of their drinks.

 Place:

The third element, place, is about distribution of soda drinks. Drinks

may be sold in mass chain stores, such as Wal-Mart, and in an array
of other retail stores, such as drug stores, grocery stores, and corner
stores or bodegas. Distribution is the key to getting the product in
front of consumers, so place is a very important part of the overall
sales equation.

 Promotion:

Promotion includes the marketing and advertising of a product. In

the case of Pepsi, marketing is international and takes place in every
form of mass media - including television ads, print ads, and online
marketing.

Marketing Strategy:

 Selecting Customers to serve:

Marketing Segmentation: Pepsi segments its market in several ways.

Pepsi, mainly segment their market demographically assuming age,
income and family size. Pepsi’s behavioral segmentation has been a key
to the company’s success.
Age is one of the most significant parts of the segmentation of Pepsi.
Pepsi introduces Pepsi diet for the people who are suffering from
diabetic and for those who are likely to avoid sugar and for the aged
people specially 40 plus. Pepsi mainly produces the Pepsi cola the main
customer of Pepsi cola is young people whose age is 10 to 35.
On income basis Pepsi also segment their market by making little pack.
They offer a competitive price range to all class of people. They
consider the economic situation in our country. So they introduce Pepsi
in different price for different the people whose income is different.
They think about student, poor people, and middle class people
economic condition for their pricing. Family size basis is also a base
segmentation for Pepsi. In our society, there are many families with
different family size. So Pepsi is served into many size 250ml, 500ml, 1L,
1.5L, 2L pack. People can easily choose a suitable pack based on their
family size.

Target Marketing: The reason why Pepsi-Cola has fiercely targeted this
market is because it is the largest among its users. Market segment
profiles have shown that the majority of carbonated beverage drinkers
are youth and middle age people. Pepsi continually targets the Schools,
Colleges, Universities, restaurants, hotels, and fast food Stores. For this
they always spend huge amounts of money to compete with Coca Cola
in acquiring contracts with universities to have sold representation of
their product distribution. Pepsi customers are mostly teenagers and
young adults between the ages of 14 to 29.

 Marketing Management Orientation:

Production concept: Pepsi always follows Production concept. They

always more focus more on quantity but less focus on quality. They
produce a huge amount of product, So that the cost of the production
decreases.
 Amount of
product

Lower
Higher

Production
cost

Marketing Concept: Pepsi follows marketing concept. They always

highlight their target markets needs and make sure that the product is
available and highly affordable for them.
 Analyzing the Marketing Environment:

Micro environment for Pepsi:

The company: PepsiCo is the company which produces Pepsi.

Suppliers: ABDUL MONEM SUGAR REFINERY LTD, IGLOO BOTTLERS
GRADE SUGAR. Tanvirs’(PEPSI COLA CANS SPEAKER), Partex Plastics
Ltd. (PLASTIC CLOSURES)

Marketing Intermediaries: Akin Enterprise, BANGLADESH. ANSii

Computers, BANGLADESH.

Customers: Pepsi customers are mostly young group between the ages
of 14 to 30.

Competitors: Coca Cola, RC Cola, Red Bull etc are the competitors of
Pepsi.
Macro environment for Pepsi:

Demographic Environment: In the demographic environment,

marketers must be aware of worldwide population growth; changing
mixes of age; ethnic composition, and educational levels; the rise of
nontraditional families; large geographic shifts in population; and the
move to micromarketing and away from mass marketing. the world
population is showing "explosive" growth, totaling 6.1 billion in 2000
and will exceed 7.9 billion by year 2025.A growing population does not
mean growing markets unless these markets have sufficient purchasing
power. Nonetheless, companies that carefully analyze their markets
can find major opportunities. Countries also vary in ethnic and racial
makeup. At one extreme is Japan, where almost everyone is Japanese;
at the other is the United States, where people from come virtually all
nations. Each group has certain specific wants and buying habits.
Several food, clothing, and furniture companies have directed their
products and promotions to one or more of these groups. Pepsi is the
product which makes a balance demographic environment.

Economic Environment: Markets require purchasing power as well as

people. The available purchasing power in an economy depends on
current income, prices, savings, debt, and credit availability.

Marketers must pay close attention to major trends in income and

consumer-spending patterns. Marketers often distinguish countries
with five different income-distribution patterns: (1) very low incomes;
(2) mostly low incomes; (3) very low, very high incomes; (4) low,
medium, high incomes; and (5) mostly medium incomes. Marketers
must pay careful attention to major changes in incomes, cost of living,
interest rates, savings, and borrowing patterns because they have a
strong impact on business and PepsiCo is always aware of economic
environment for Pepsi.

Natural Environment: In the natural environment, marketers need to

be aware of raw materials shortages, increased energy costs and
pollution levels, and the changing role of governments in
environmental protection. The earth's raw materials consist of the
infinite, the finite renewable, and the finite nonrenewable. Infinite
resources, such as air and water, are becoming a problem such as water
shortages. Finite renewable resources, such as forests and food, must
be used wisely. Forestry companies are required to reforest
timberlands in order to protect the soil and to ensure sufficient wood
to meet future demand. Finite nonrenewable resources - oil, coal,
platinum, zinc and silver will pose a serious problem as the point of
depletion approaches. Dramatic rise in oil prices can also create a
renewed search for alternative energy forms. Some industrial activity
will inevitably damage the natural environment. About 42 percent of
U.S. consumers are willing to pay higher prices for "green" products.
This creates a large market for pollution-control solutions, such as
scrubbers, recycling centers, and landfill systems. Governments vary in
their concern and efforts to promote a clean environment. Many poor
nations are doing little about pollution, largely because they lack the
funds or the political will. Richer nations are able to help the poorer
nation’s control their pollution, but even the richer nations today lack
the necessary funds. For Pepsi-Cola, the packaging of Pepsi is closely
related to the natural environment. So they always try to make the
packaging of Pepsi in recycling format.

Technological Environment: This is one of the most dramatic forces

shaping people's lives. The economy's growth rate is affected by how
many major new technologies are discovered. New technology also
creates major long-run consequences that are not always foreseeable.
Therefore, the marketer should monitor the following trends in
technology: the pace of change, the opportunities for innovation and
increased regulation. Many of today's common products were not
available 40 years ago. An increasing number of ideas are being worked
on and the time between the appearance of new ideas and their
successful implementation is all but disappearing. So is the time
between introduction and peak production.90% of all the scientists
who ever lived is alive today and technology feeds upon itself. Scientist
today is working on a startling range of new technologies that will
revolutionize products and production processes. Some of the most
exciting work is being done in biotechnology, computers and
telecommunications. Many companies are content to put their money
into copying competitors' products and making minor feature and style
improvements. As products become more complex, the public needs to
be assured of their safety. Consequently, government agencies' powers
to investigate and ban potentially unsafe products have been
expanded. However their innovation level is not so high but PepsiCo
always try to make new innovation in Pepsi.

Political-Legal Environment: Marketers must work within the many

laws regulating business practices and with various special-interest
groups. Business legislation has three main purposes: to protect
companies from unfair competition, to protect consumers from unfair
business practices and to protect the interests of society from
unbridled business behavior. The laws are not always administered
fairly; regulators and enforcers may be lax or overzealous. Marketers
must have a good working knowledge of the major law protecting
competition, consumers and society. As more business takes place in
cyberspace marketers must establish new parameters for doing
electronic business ethically. Many companies have established public
affairs departments to deal with these groups and issues. An important
force affecting business is the consumerist movement - an organized
movement of citizens and government to strengthen the rights and
powers of buyers in relation to sellers. The company monitors the
political environment of the many foreign nations in which Pepsi is sold.

Social-cultural Environment: In the social-cultural arena, marketers

must understand people's views of themselves, others, organizations,
society, nature and the universe. They must market products that
correspond to society's core and secondary values and address the
needs of different subcultures within a society. People living in a
particular society hold many core beliefs and values that tend to
persist. Secondary beliefs and values are more open to change.
Therefore, marketers have some chance of changing secondary values
but little of changing core values. Each society contains subcultures. To
the extent that sub cultural groups exhibit different wants and
consumption behavior, marketers can choose particular subcultures as
target markets. Although core values are fairly persistent, cultural
swings do take place. Today, young people are influenced by new
heroes and new activities: Tiger Woods, and extreme sports. It must
also continue to monitor the cultural environments of the other
countries in which it does business of Pepsi.
 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 Pepsi’s 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.
Pepsi’s 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, valentine’s day, friendship day,
any individual’s 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

World region Asia

Country Bangladesh

Cities All major cities

Density Urban

Climate Tropical wet

Demographic

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 Pepsi’s 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 doesn’t 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 Pepsi’s 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.

1939–1950: "Twice as Much for a Nickel"

1950: "More Bounce to the Ounce"

1950–1957: "Any Weather is Pepsi Weather"

2012: "Change the Game"

2013–present: "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 PepsiCo’s “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 world’s 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

Direct Distribution System:

Pepsi uses its direct distribution system to deliver suppliers. It Supplies

the product directly with

 PIZZA HUT
 KFC
According to the marketing channel Pepsi uses zero level of marketing
channels. It means

Manufacturer Consumer

We can see there are no intermediaries between manufacturer and

consumer. This single type of marketing channel is maintained by Pepsi.

Indirect Distribution System:

In this system, there are a lot of intermediaries such as distributors,

retailers, wholesaler etc. To make the product available at the right
places at the right time in the market, the sales department of PepsiCo
Company pays major attention on controlling the channel of
distribution. The nature of the channel is as follows:-

PEPSI DISTRIBUTORS

WHOLESALER

RETAILERS CONSUMERS
So according to the marketing channel Pepsi uses 2-level marketing
channel. It means

Manufacturer Wholesalers Retailers Consumer

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 company’s direct point of contact. Distributors don’t 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.
 Integrated Marketing Communications
Pepsi has popularity among the population. Therefore, it is quite
challenge for Pepsi Cola to maintain and increase this popularity.
Integrated Marketing Communications (IMC) is one of the effective
strategies that researcher believe it will solve the existing problem in
the business area. Nowadays, competition in the market tend to
increase, the customer also change their lifestyle and buying behavior
become increasingly changed, then using only one tool for marketing
communication is not enough. It is because many senders or
organization try to reach to the same receivers or customers. So, using
many of strategies and communication tools will help their brand to
become well known. Integrated Marketing Communication (IMC) is a
tool that suitable for encouraging the customer buying behaviors.

Promotion Mix of Pepsi:

The promotional mix element used for the Pepsi Refresh campaign
theme centered on social responsibility and delivered with a heavy
dose of social media. They took it deeper than any other campaign,
targeting the millennial generation ages 14 to 29 by utilizing social
media as an additional source along with traditional media to launch
the Pepsi Refresh campaign. The campaign aired on paid search and
display ads on Yahoo and Google to traffic their viewer to a link on
YouTube and Face book too included other channel like e-mail
marketing and mobi sites which drive visitors to the site.

Promotion strategy of PEPSI:

Advertising:

For advertising, it used printed and electronic media. Every newspaper

and magazine carries Pepsi advertisements that make the people
interested toward it. Advertisement of Pepsi are eye catching and
attractive. Through advertising it informs the consumer about new
brands and flavors. Pepsi designs their advertisement campaign
focusing on the target markets. They research for the need of people
before make the ads.

Sale promotion:

Pepsi has used a variety of sales promotions over the years. They have
used celebrity such as Michal Jackson, Beyoncé’ for endorsements. This
has been shown with the use of BeyoncŽ.

Michal Jackson promoting Pepsi

They have also had essay contest to promotions through schools. They
have giveaways in stores and coupon advertisement in newspapers.
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:

 Since there are older people and Pepsi has been traditionally a
young people’s drink, Pepsi will have to stimulate consumption by
older members of society
 Pepsi uses Plastic bottles and cans which can be harmful for
society. So Pepsi should be produced more in recyclable bottle
 Need to improve PR activities in urban areas
 In our country, with brand name people prefer Pepsi 23% but
without brand name it is 51%. So need to improve its brand value.
 Should increase promotion strategy to introduce new product line
like Pepsi next, Pepsi zero etc.
Conclusion:

Pepsi has been successful in generating profits in this extremely

rivalries industry. What the company should do now is employ a
strategy that now only addresses its own deficiencies in an effort to
grow market share, but one that will increase the overall size of the pie.
This strategy, in the end, will allow Pepsi to grow and sustain above-
average returns.

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/companies/pepsic
o_inc/index.html.
Appendix:

Source: MORI

Proportion size and Purchase profile

 Source: www.bplans.com

FIG. 5 REDUCTION OF WATER USED FOR MANUFACTURING AT PEPSICO INDIA, IN 2009

SINCE THREE YEARS (SOURCE: HTTP://WWW.PEPSI.COM)