Pepsi

PepsiColawasfirstmadeinthe1893bypharmacistCalebBradhaminNewBern,NorthCarolina.Initially
Pepsiwasintroducedas“BradsDrink”byBradhamin1898andwasmadeatBraham’spharmacywheret
hedrinkwasalsosold.Later,BradhamchangeditsnamedtoPepsiCola,duetotheenzymepepsinandkol
anutsusedintherecipe.In1903“Pepsi-
Cola”wasofficiallyregisteredwiththeU.S.PatentOffice.TodayPepsiColaismanufacturedbyPepsiCo.
PepsiCoisaworldleaderinconvenientsnacks,foodsandbeverages.CurrentlyPepsiCoisthenumber2
manufacturerinsoftdrinksbehindCocaCola,numberoneinsnacksandnumberoneinjuices.PepsiCoh
asrevenuesof$40billionayearwithbeveragescontributingtolessthan50%ofthatrevenue.

Marketing Research :

Marketing Research is the function which links the consumers and customers to the
organization through information; information used to identify and define marketing problems;
generate, refine and evaluate marketing actions; monitor marketing performance; and improve
our understanding of marketing as a process. By doing marketing research on PepsiCo we can
identify its primary, secondary and all internal and external problems.

Sources of Information:The information that is collected directly is called primary

information.

Primary: The information that is collected directly is called primary information. Information
that is collected first-hand,generated by original research tailor-made to answer specific
research questions.

Secondary:Information that has already been collected for other purposes and thus is readily
available.

Problems:

Internal(Primary)

1. Distribution difficulty.
2. Diversified portfolio at times makes decision process difficult.

3. Price of Pepsi colais more expensive than its competitors.

Internal(Secondary) :

1.Consumption pattern.

3.Purchasing behaviour.

4.Aging workforce and retirements

External(Primar)y :

1.Pepsi does not offer any sort of incentive or discounts to its retailers.

2.Pepsi is not considering many potential outlets like college, hostels, canteen etc.

3.Significantly less customer support services than is required in terms of the number of
customers and the complexity of the services offered.

4.Uncertainty of the new market. Entering new market company cannot mitigate all the risks.

5 Changing economic and political situation, which pushes the company to make future
predictions and forecasts.

6.Different needs and habits of customers in every market. Company is operating in the
markets where people have different taste, habits, income, which is hard to evaluate and
predict.

7. Warehouse problem

External (Secondary) :

1. Changing economic and political situation, which pushes the company to make future
predictions and forecasts.
2.Cola drinks are not good for the health so the awareness level of the people is increasing whic
h is a big problem to the company.

3. Product pricing not preferred by many customers.

4.. Few local manufacturers who tend to sale their products at a relatively lower price through
various unethical means.

Data Source :

Internal Data Source :

Internal company data is a fruitful source of information . Total Sales by products, Sales vdume
by market segment, Sales volumes by type of channel distribution Pricing information - pricing
adjustment,Communication mix informatinn Sales representative records and reports.

External Data Source :

Universities, Public library interner - Electronic Data Base.

Primary Research :

Quantitative: Data analysis based on questionnaires from a large group of respondents.

Qualtative: QualItative Provides a holistic view of a research problem by integrating a larger

number of variables. but asking only a few respondents.

1.Research Design :

Research problems and objective :

Changing economic and political situation, which pushes the company to make future
predictions and forecasts. Sometimes, Product pricing not preferred by many customers.
Different needs and habits of customers in every market. Company is operating in the markets
where people have different taste, habits, income, which is hard to evaluate and predict.Prices
of some of the Nestlé products are more expensive than its competitors. Unable to control raw
material prices.

2.Research Approaches:

 Observation : Several countries and organizations are still boycotting Pepsi despite their
claims to be in compliance with WHO regulations. There’s even a committee, the
International Pepsi that monitors their practices. Several universities and student
organizations have also joined the boycott, especially in the UK.
 Experiment : Pepsi face their warehouse problem. Sometimes product pricing not
preferred by many customers, so its great problem for the company, That's why they
face the external problem. Economic and political situation also affect the company,its
creat financial risk.When those problems are create then there are many unrelated
factors occurred, So the company must control thosr factors.As a result, the company
provide varios types of new product and crete test marketing for their products.
 Survey: In this approach the company create many questionnaire and try to get answer.
lnvolves a formal questionnaire questions asked are in pre-arranged Survey research is
used for a variety rnarketing issues: Company try to understand the customer attitudes
Customer buying habits Potential market size and market trends. Generate descrlptlve
rather than casual data.

3.Contact Method :

 Mail: Mail is a least expensive method for data collection. So the Pepsi company create
it and Ouestionnaira can include pictures. Respondents can answer in leisure time and
wait to receive tho reply takes longer. Response rate is lower in countries at low
literacy education level.
 Internet : In this way,the company collects a large amount of data that can be
quantilied and coded into a computer. Perfect for low budget,so the company easily
collect information from the people. But there is a problem that its difficult to collect
the mail from the people.
  Telephone Interview : In this way,the Pepsi company gets response rate higher than
mail and lower than face-to-tace interview Cost less than personal interviews. Allows a
degree of flexibility Use of visual aid not possible and limited number oi questions can
be asked.
 Personal Interview : Product pricing not preferred by many customers.And its great
effect for the company, So the company create personal interview and get the
information from the people. The create individual interview from home or street or
office and inderviewer should gain corporation of respendents. Group: Focus group
interviewing Requires trainod moderator Moderator needs to be objective.
knowledgeable on subject behavior.

4.Sampling Plan:

Impractical expensive to contact all people relavant to research So that the company know
that what about thinking the cutomers about their product pricing.Contact selective group of
people representative of entire Populalion. Sampling plan is a scheme outining the group (or
groups) to be surveyed in a marketing research study. how many individuals are to be chosen
for the survey. and what basis this choice is made.

Sampling Procedure:When the company proceeding their sampling then they think about
the probability and non probability sampling.

Probability sampling: Specify the chance each sampling unit has of being included in the
sample and those are random sampling, Stratified samplng, Cluster sampling and Systematic
Samoling.

Non-Probability Sampling: Not possible to delermine the probability or calculate the

sampling error. Relay on personal judgement.Convenience sampling, Quota sampling and
Snowball sampling to sampling

Sample Size: Sample size and Cost have a linear relationship. Sampling error decreases at the
rate of square root of the Increase in sample size.Methods of determining the gample size.
Traditional statistical techniques, Budget Available, Rule of thumb, Number of sub-groups to
be anaIyzed For Tranenational Researchers. The researcher wants the same sampling method
for all countries

Others types of Market Research :

Delphi Studies: Aims at qualitative measures 10-30 key intormantsiexperts identify mapr
issues and rank them in order Other particpants state their agreement disagreement After
several rounds coherent consensus is reached.

Ad-hoc Research : Focus on specific market problems and CoIlect data from one point in
time, from one sample of respondents.

Multi-Client Studies :Low cost way for company to answer specific research questions
without conducting primary research on their own:Independent research studies and Omnibus
studies.

Custom Designed Studies:Research briet given to market research agencies or internal

market researcher These researches can be very expensive