Marketing Strategy and Application

Contents
Introduction:...............................................................................................................................3
LO1 Explain the role of marketing and how it interrelates with other functional units of an
organisation................................................................................................................................3
1- Introduction to the concept of marketing, including current and future trends...........3
Role of marketing:..............................................................................................................3
Current trends of marketing:..............................................................................................3
2- An overview of the different marketing processes......................................................4
3- Explanation of the role and responsibilities of a marketing manager in the context of
the organisation......................................................................................................................4
4- An explanation of how marketing influences and interrelates with other functional
departments of the organisation.............................................................................................5
Operations:.........................................................................................................................5
5- The value and importance of the marketing role in the context of the organisation.. .5
6- Conclusions that emphasise the significance of having effective interrelationships
between different functional departments..............................................................................5
LO2: Compare ways in which organisations use elements of the marketing mix (7Ps) to
achieve overall business objectives............................................................................................7
Product:..............................................................................................................................7
LO3: Produce a marketing plan to meet marketing goals and objectives. The marketing plan
should include all elements of the 7Ps marketing mix, with a tactical action plan and
measures for monitoring and evaluating progress and meeting of goals and objectives...........9
MARKETING PLAN OF PEPSICO.........................................................................................9
Introduction:...........................................................................................................................9
Mission and Vision Statement:..............................................................................................9
Objective:...............................................................................................................................9
Target market:......................................................................................................................10
Market segmentation:...........................................................................................................10
Geographical:...................................................................................................................10
Departments:........................................................................................................................10
Operations:.......................................................................................................................10
Marketing Mix (7Ps)............................................................................................................11
Product:............................................................................................................................11
Competitors:.........................................................................................................................12
Marketing strategy:..............................................................................................................12
 Positioning:......................................................................................................................12
SWOT Analysis:..................................................................................................................12
Strengths:..........................................................................................................................12
Weaknesses:.....................................................................................................................13
Opportunities:...................................................................................................................13
PEST Analysis:....................................................................................................................13
Political:...........................................................................................................................13
Technological:..................................................................................................................15
Conclusion:..............................................................................................................................15
References:...............................................................................................................................16
Introduction:
In this we are going to discuss about the PepsiCo company, about their marketing strategy
how they come up with new marketing ideas to innovate new products and new packaging
service.

LO1 Explain the role of marketing and

how it interrelates with other functional
units of an organisation.
1-Introduction to the concept of marketing,
including current and future trends.

Role of marketing:
It is an activity on which every business is dependent on. The sales and profitability of a
company is just dependent on the marketing strategy. The most important thing is every
operation and every plan relies upon the marketing of a company (Sun, W., Price, J. and
Ding, Y., 2019).

Concept of marketing:

 It relates to the customers need. Marketing activities of an organization directly targets

the target market.
 It makes sure that the product is available and should be affordable for consumers.
 It elaborates about an innovative technique that a company is choosing to attract new
customers and to compete in the industry.
 The marketing strategies of a company also defines about the activities that a company is
doing for the public.
It is about being effective in creating and communicating to customers (Kotler, P.,
Kartajaya, H. and Setiawan, I., 2019).

Current trends of marketing:

the company insurance. The product should be according to the customers in mind and the
product repeat innovative according to the societal needs. Companies ensure that their
position is the market should be stable and they should define clearly about the company and
to urge customers, new and innovative technology should be used.

Future trends of marketing:

Things are getting better and better day by day, so companies has to innovate new products
and to use their strategies according to the demands of the customers.  There is a need for
companies to use transformation strategies to improve and introduce products (Sebaa, A.,
Nouicer, A. and Tari, A., 2019).

2-An overview of the different marketing processes.

Companies strives to access the external or wider audience to target for their products. Here
are some steps to which a local company can introduce their product in an international
market.
1. Introduce your product in a local market and promote it so that you won't need to
promote it again at international market. Use every resource to promote company's
sale and for more profit, introduce new products.

2. Get to know the company's target market at international level. Use strategy to hire
those people who are living in that local area so that company will get familiar to the
market.

3. Use strategy to introduce products at a smaller level so that all of the resources would
not get used.

4. Now if the small business works out then the company can start expanding their
business. Use resources like raw material from the local market to attract people and
make a brand image (Sun, W., Price, J. and Ding, Y., 2019).

3-Explanation of the role and responsibilities of a

marketing manager in the context of the
organisation.
 Marketing manager introduces new strategies in a market.
 Chooses different target markets for different products.
 He plans and implement new promotional deals.
 Sets up a marketing budgets, so that there won't be any loss due to the expenses.
 Maintains criteria for customer interaction.
 Build up new researches for customer satisfaction (Laczniak, G.R. and Murphy, P.E.,
2019).

4-An explanation of how marketing influences and

interrelates with other functional
departments of the organisation.
Operations:
It relates with Marketing department as a marketing department gives a forecast for the sales
of a company's product so that the operation department can start producing the products.

Finance:
Finance department is also related with the marketing department as the finance department
gives the budget to the marketing department for the promotional activities and sales.

Research:
It gives an output to the marketing department about the customers need and the complaints
about the product in regard to the innovation (Kirchoff, J.F., Nichols, B.S. and Rowe, W.J.,
2019).

5-The value and importance of the marketing role in

the context of the organisation.
 Through marketing customer get to know about the products that are being introduced.
 New products are produced when there is a communication between the customers and
the company.
 The sales of the company increase.
 Companies get to know about the preferences of the customers.
 Marketing team introduces promotions that directly attracts new customers (Previte, J.,
Russell-Bennett, R., Mulcahy, R. and Hartel, C., 2019).

6-Conclusions that emphasise the significance of

having effective interrelationships between
different functional departments.
 Communication takes an effective chance to deliver departmentally, so that the customer
does not have to wait for their issue to be resolved.
 The staff of every department becomes effective and shows efficiency in increasing
customer satisfaction.
 It increases interaction between departments so that everyone will work for the company's
profit and reputation.
 It gives a sense of authority to the Employees.
 It gives strength to compete with the competitors in product development.
LO2: Compare ways in which
organisations use elements of the
marketing mix (7Ps) to achieve overall
business objectives.
Product:
product needs to be according to the customer's demand as customers going to judge the
company according to the availability and convenience of the product. PepsiCo has
introduced baked snacks business as to introduce products that are healthy to attract people
customers who are health conscious.

Price:
the pricing strategy of a company should be effective as many customers focus on the price of
the product. The transportation cost and the labour everything when included it increases the
price of a single product that directly affects the buying pattern. As PepsiCo is working with
Walmart so it has to hold its price low. It is also working to use inexpensive bottles and that
should be recyclable so that they can sell their product at a low price.

Place:
products availability at small stores matter as people sees if it is available or accessible to the
local customers or not. PepsiCo started from US and it has now expanded itself to the Asian
market and to the Europe as well. PepsiCo's beverage products are easily available at general
stores, confectioneries and restaurants.

Promotion:
Pepsi to promote its product to the customers especially the young people as they are more
inclined towards the junk food. PepsiCo has sponsored many sports events and meaning
concert for entertainment. There are many events in which PepsiCo introduces their
promotional deals to give value to their customers.

People:
PepsiCo is famous to recruit people that are from intercultural, as it promotes diversity.
PepsiCo was named as the best diverse culture for women in the magazine. It has also won
the award of best talent acquisition.

Physical evidence:
this incorporates that what so ever a company includes in its advertisement and marketing
strategies, should be visible physically. PepsiCo has its website which includes the history,
product details and new campaigns.

Process:
PepsiCo's main focus is to reduce the sugar content from the product and to introduce new
products with quality service and healthy ingredients.  It is focusing to introduce bottles that
are recyclable and that should not be harming the environment (Venaik, S. and Midgley,
D.F., 2019).
LO3: Produce a marketing plan to meet
marketing goals and objectives. The
marketing plan should include all
elements of the 7Ps marketing mix, with a
tactical action plan and measures for
monitoring and evaluating progress and
meeting of goals and objectives.

MARKETING PLAN OF PEPSICO

Introduction:
PepsiCo was formed in 1965 and is known as Pepsi Cola Company. It is working in approx.
200 countries. It has products like snacks and drinks, so that is why it is the most known and
valuable brand. It has acquired many companies like Frito-Lay, Tropicana and Quaker Oats.
It was the beverage company only, but after acquisitions, it became the Food and Beverage
Company. Its main focus is to introduce products that can change the lifestyle of its
customers (Church, A.H., 2019).

Mission and Vision Statement:

Its aim is to provide customers with convenience of beverage and food. Their mission to give
employees the opportunity to get comfortable within the environment and to provide them
with their promotional opportunities. Company wants to establish an environment through
which they can support and benefit the society (Ciprés, C. and de la Cruz, M.T., 2019).

Objective:
Their objective is to supply products to customers at a low price.
Quality products according to the customer preferences.
Best employment opportunities to the people living in that local area.
Work to change the organisation of the people.
Provide products that are healthy, so that people do not need to think for the second option
(Venaik, S. and Midgley, D.F., 2019).
Target market:
The company is targeting the youth, whether they are from lower, middle or upper class.
They are highly working to target people of old ages and to target them sugar free drinks and
baked products are introduced (Middelhoek, A., 2019).

Market segmentation:
Companies divide the population on the basis of their preferences, area, age and etc. By doing
this they can target effectively and efficiently according to the choices.

Geographical:
the division is based on the region that people demand different product living in USA or
people living in Africa. The division is also based on the weather because many people
demand products that are for the warmth of the body and many people want cool products for
their lifestyle and due to warm weather.

Demographic:
the total population is divided into many groups through which needs and demands of each
group is analysed. The group division is based on different ages that is younger to older
people, there are subdivision that is based on the income pattern of the family. There are
many families who are greater in numbers, so PepsiCo introduced jumbo bottles, so that it
would be enough for them.

Behavioural:
the division is based on the responses, there are many people who consumes large number of
junk food, so convince those people and to make them satisfy, many new products have been
introduced to counter them. There are many groups that uses junk food to improve their
lifestyle. Buying pattern also depends on the income of a family, there are some countries
which have high inflation rate than the PepsiCo has to introduce products with lower prices to
attract them (Blythe, J. and Martin, J., 2019).

Departments:
Operations:
It relates with Marketing department as a marketing department gives a forecast for the sales
of a company's product so that the operation department can start producing the products.

Finance:
Finance department is also related with the marketing department as the finance department
gives the budget to the marketing department for the promotional activities and sales.

Research:
It gives an output to the marketing department about the customers need and the complaints
about the product in regard to the innovation (Kirchoff, J.F., Nichols, B.S. and Rowe, W.J.,
2019).
Marketing Mix (7Ps)
Product:
product needs to be according to the customer's demand as customers going to judge the
company according to the availability and convenience of the product. PepsiCo has
introduced baked snacks business as to introduce products that are healthy to attract people
customers who are health conscious.

Price:
the pricing strategy of a company should be effective as many customers focus on the price of
the product. The transportation cost and the labour everything when included it increases the
price of a single product that directly affects the buying pattern. As PepsiCo is working with
Walmart so it has to hold its price low. It is also working to use inexpensive bottles and that
should be recyclable so that they can sell their product at a low price.

Place:
products availability at small stores matter as people sees if it is available or accessible to the
local customers or not. PepsiCo started from US and it has now expanded itself to the Asian
market and to the Europe as well. PepsiCo's beverage products are easily available at general
stores, confectioneries and restaurants.

Promotion:
Pepsi to promote its product to the customers especially the young people as they are more
inclined towards the junk food. PepsiCo has sponsored many sports events and meaning
concert for entertainment. There are many events in which PepsiCo introduces their
promotional deals to give value to their customers.

People:
PepsiCo is famous to recruit people that are from intercultural, as it promotes diversity.
PepsiCo was named as the best diverse culture for women in the magazine. It has also won
the award of best talent acquisition.

Physical evidence:
this incorporates that what so ever a company includes in its advertisement and marketing
strategies, should be visible physically. PepsiCo has its website which includes the history,
product details and new campaigns.

Process:
PepsiCo's main focus is to reduce the sugar content from the product and to introduce new
products with quality service and healthy ingredients.  It is focusing to introduce bottles that
are recyclable and that should not be harming the environment (Venaik, S. and Midgley,
D.F., 2019).
Competitors:
Competitors are those companies that directly influence the sales of a company. PepsiCo has
its direct competition with many food and beverage companies that might influence the sales
due to their strategies.
PepsiCo has a close competition with Coca-Cola as they both directly influence each other’s'
sale. Pepsi perfect and Vitamin water are one of the products that may influence each other’s
sale.

Pepsi cola has its competition with Nestle juices as well. This is the most important thing as
Nestle is providing juices that are for health-conscious people and Pepsi-Cola is somewhat
considered as non-healthy product (Keller, K.L., 2019).

Marketing strategy:
Positioning:
PepsiCo has introduced products with good packaging service and their product is available
in every size to attract a single person or to attractive a family size.

Product:
They have been working to introduce new flavours and to introduce new products with
different product line. They are now focusing on the health issues as people are becoming
more health conscious than ever.

Pricing:
PepsiCo promote its product through the lower pricing strategy and is working introduce
products that should be basically for families with low income.

Distribution:
They have their own distribution channels and they supply their products to the marts,
restaurants and to small shops that are nearer to the houses of local people (Harris, J., Frazier
III, W., Fleming-Milici, F., Hubert, P., Rodriguez-Arauz, G., Grier, S. and Appiah, O., 2019).

SWOT Analysis:
Strengths:
They have unique and good packaging service.
They have their brand name.
PepsiCo has a good reputation in market due to its quality service.
They have R&D section that works continuously to improve products according to the
technology.
Most part of their budget is a spend on their marketing strategies.
Financial position is strong in the market.
They introduce many promotional deals according to the events.
Weaknesses:
 PepsiCo is not considering areas much that are less equipped with technology.
PepsiCo's main focus is the young generation.
There is many packaging that cannot be recycled, due to which the environment is getting
into trouble.
There are very low discounts for retailers.  Due to the health-conscious population,
PepsiCo is losing its revenue.

Opportunities:
There is a high increase in the interest by the youth in the events like, musical or sports
events.
Due to the technological improvement, PepsiCo can increase its product line. 
Population size is increasing and there is a high consumption of junk food by the
consumers.
PepsiCo can work in the areas that are less equipped with technology and so they would
have less competitors. 
Through the sponsorship in the events like musical or sports, they can increase company's
sales.

Threats:
People are getting more aware of the health issues.
Many local competitors are established to introduce their products at low prices.
In many countries inflation rate is increasing.
Law and order situation globally are impacting the sales of the company.
More frequent changes in the technology (Akter, M., 2019).

PEST Analysis:

Political:
Analysis that defines about the government's policies against any company or the initiatives
that any government takes for the improvement of the customer's lives. There are many tax
implications that affect PepsiCo's pricing strategy.

Economical:
It depends on the buying pattern of any country's consumers. If the inflation rate increases
then the prices of the product increases and so that the consumer will buy less products.

Social:
With the passage of time, consumer changes their buying pattern and their preferences
according to their needs and wants. As the people are becoming health conscious, they can
switch PepsiCo's products to the healthy or natural juices.
Technological:
New technology is coming, and companies have to innovate their products according to the
market. New product line should be introduced by the PepsiCo so that they could stay in the
market as the competitors are using their strategies to improve their products (Nofrizal,
U.L.K., Soviyanti, E., Khairani, Z., Ciptono, W.S., Mada, U.U.G. and Hanafi, M.M., 2019).

Conclusion:
we have discussed about the marketing strategy that PepsiCo is using to improve their quality
and service of the products. Company is using their marketing strategy to know more about
their customers and to implement their preferences.
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