MARKETING ESSENTIALS

Table of Contents
Introduction................................................................................................................................3

The Role of Marketing and how it relates to other functional units......................................4

How PepsiCo uses the Marketing Mix and their Marketing Plan..........................................8

Conclusion................................................................................................................................14

References................................................................................................................................15
Introduction
Marketing maintains successful partnerships with clients. The goal of marketing is to produce
consumer value and to capture customer value. Marketing works with clients rather than any
other company feature. While we will be exploring more comprehensive marketing concepts
soon, the easiest description maybe is this: marketing handles profitably relationships with
consumers. The dual purpose of marketing is to win new consumers by offering superior
value and through providing loyalty, to retain and expand existing customers (Pasco, 2002).
In this report, the most significant aspects of PepsiCo have been evaluated along with a
marketing plan. As an international company, the marketing department plays a vital role in
the business expansion, consumer satisfaction and global promotion of this company
The Role of Marketing and how it relates to other functional units
The primary emphasis is on the realistic implementation and operation of the marketing
businesses of a company by marketing managers or the employees who have been appointed
to conduct the marketing tasks. They should provide outstanding listening and analytical
capabilities for brand management to execute their activities effectively and efficiently
(Groucutt, Leadley and Forsyth, 2004). In small companies, the brand manager is responsible
for the whole brand business of the company and is also responsible for formulating,
overseeing and arranging marketing campaigns to influence consumers to choose the
products of the organisation over the ones of rivals. As a global company, the marketing
department of PepsiCo has to evaluate the global and regional trends simultaneously and
make progressive decisions to obtain a competitive advantage in the market.

Figure 1: Responsibility of Marketing Department of PepsiCo (Pasco, 2002).

Market Evaluation is the first and the most significant task

A marketing officer of PepsiCo performs a market analysis to understand precisely what

consumers in a company’s consumer base desire. Marketing analysis helps these managers,
by helping the company build a market spot for its goods or services, to find potential market
opportunities. Market analysis of PepsiCo also includes researching the rivals of the company
to produce superior products and use effective marketing methods. Companies undertake
analysis on the industry through questionnaires, face-to-face interviews or customer shopping
behaviours (Groucutt, Leadley and Forsyth, 2004).

Planning an effective marketing plan

Marketing professionals of PepsiCo build their companies' marketing campaigns based on the
contemporary and future trends of the market. These tactics illustrate specifically how the
organisation, to raise its sales levels and maintain a competitive eye on its rivals, markets its
goods and services to its target market.

Integrating the consumer demand into the company strategy

The marketing officers of PepsiCo play the task of championing the administration of
customer relations by critically analysing their shifting demands. To generate a customer
feedback report, the Brand Managers of this company gather this information from a
customer database (Pasco, 2002). Marketing managers then exchange this knowledge with
other staff and ensure that they give their customers outstanding customer support and create
long-term relationships. It plays a very effective role in the company growth of PepsiCo.

Employee Management

Marketing managers of PepsiCo are responsible for the effective running of the marketing
department and they are also responsible for other departmental staff. They delegate
responsibilities and set departmental workers goals (Groucutt, Leadley and Forsyth, 2004).
Marketing managers often have the function of consistently reviewing the efficiency of the
workers working with them.

Identifying emerging market scopes for business expansion

To find untapped or emerging opportunities for organisational goods and services marketing
managers of PepsiCo evaluate market dynamics. They will assess high and off-peak demand
times for their goods by observing the purchase habits of customers. They will predict the
potential success of the goods of the firm using sales forecasts (Keegan and Green, 2014).
They will also build plans to ensure that the business of PepsiCo stays competitive through
competition research and forecasts.

The role of the marketing manager is to conduct core tasks in the marketing function and to
take the following simple choices:
In the planning of the company strategies, PepsiCo marketing executives play a significant
role. Development of marketing study plan, industry target group, product listing policy,
product development programs, development of price strategies, development of publicity
and promotional programmes, organisation of channel distribution declaration and
recruitment and marketing training personnel.

The marketing department of PepsiCo has some organisational responsibilities too.

Coordinating the execution of consumer testing programmes, creating a distribution
intermediary network and distribution sites, establishing partnerships with government,
establishing the organisational framework of the marketing department (functional or
efficient organisation, regional region or matrix structure), precisely the responsibility for
each department (Etzel, Walker and Stanton, 2007).

In the evaluation of the functions like budget audit, expense relative to budget, assessment of
advertisement performance, marketing, price and change reviews, delivery system
management, selling, the marketing department of PepsiCo must play an efficient role to
achieve the expected company growth (Pasco, 2002).

Figure 2: Influence and contact of Marketing in an organisation with other divisions

(Mayrhofer, 2012).

HRM Department: The Human Resources Department is still able to improve a

department's exactness and effectiveness and also to help any department obtain expertise by
preparation. The ties in both marketing and HR divisions must be strong for the marketing
department to have a strong team (Keegan and Green, 2014). The marketing department of
PepsiCo works together to get the advantage of managing the employees of this organisation
in the development of the marketing plan.
Finance: In all systems and all businesses, capital is the main consideration. With a lot of
comparative knowledge on the moderate price that clients expect on a particular product, the
finance department assists the marketing department. Besides the money, it brings to the
publicity department to create advertisements, fliers, package designs, badges, and all of the
arts of the business (Etzel, Walker and Stanton, 2007). In the eyes of all the marketing
employees of PepsiCo, the financial department is seen as the backbone of the business.

Production: The commercialisation department often collects data on consumers' wishes,

and also analyses the efficiency, costs of goods and the demand of the products, and reports
them back to the sales department to manufacture what people have fair prices. The
Marketing department of PepsiCo also figures out, through the surveys, what people do not
like of the product and allows the production department to enhance product quality, where to
sell and to who to sell the product based on the nature of the product itself.

In the selling of most goods and services, the marketing department of PepsiCo plays an
important function. For eg, no one in the world would be informed whether a corporation
comes out with a new product if there was no marketing department. The organisation then
gets sponsorship from advertisers who use marketing tools to sell the commodity to the
public. PepsiCo would not only let the consumer know about the goods if they did, but the
goods also will not be popular (Mayrhofer, 2012). Customers are sure to buy a new product
could be one of the toughest selling pieces. The digital revolution has made advertisers
accessible resources never before in recent years. In building up the image of the business,
marketing plays a very important role. A positive reputation or even a negative one may have
a significant sales effect. Not only can a good marketer know how to develop a good
reputation, but also how to manage a good one. PepsiCo needs to comprehend the needs of
consumers who wish to prosper. Constructing strong consumer relations is one of the main
marketing elements. The secret is the value and happiness of our clients (Keegan and Green,
2014). Higher customer satisfaction levels contribute to greater customer engagement,
resulting in increased market efficiency. For a company, the preservation of consumers is
critical and it is really important to draw new clients.

The value of marketing for a company can be observed in the above discussion. It must
develop a brand for companies, cope with negative news, market new goods and generate
brand recognition. We have also seen that the income of organisations who do not take care
of the interests of their clients inevitably decline. The businesses should consider their
 consumers’ desires and then decide to address them more efficiently than the competition
(Etzel, Walker and Stanton, 2007). With expanded disposable sales, consumers could
selectively afford to purchase only certain goods that suit their evolving desires exactly and
these conditions were not instantly apparent.

How PepsiCo uses the Marketing Mix and their Marketing Plan
Company Overview

PepsiCo is recognised to be the Pepsi Cola Company, founded in 1965.  It functions

approximately two hundred nations. It sells items such as snacks and beverages, so it is the
most popular and valuable brand. She also bought several businesses such as Frito-Lay,
Tropicana and Quaker Oats. It was just the soda business, but it became the food and drinks
business after acquisitions. The emphasis is on the launch of goods which will transform its
consumers' lifestyles (PepsiCo UK, 2020).

Company Mission

The goal is to make drinks and food convenient for customers. Their mission is to give
workers the chance to feel at ease and offer their incentives for promotion within the
environment (Mayrhofer, 2012). The organisation aims to create an ecosystem in which
society can help and benefit.

Company Goals

i. Their mission is to provide consumers with goods at a low cost.

ii. Customer expectations for premium goods.
iii. The finest effort for the people residing in the area (PepsiCo UK, 2020).
iv. Plan on transforming people's company.
v. Provide safe goods to keep consumers from hearing about the second alternative.

Market Segmentation

The business works on young adults from the bottom, middle and top classes. They work
hard to target the elderly and target sugar-free beverages and bakery goods. Based on their
interests, region and age, PepsiCo usually splits their workforce and so on. Through doing so,
they can target the options accurately and reliably.
 Figure 3: Market Segmentation (Mayrhofer, 2012).

a. Geography

For instance, the region is divided by the desire of citizens for various American items or
African people (Armstrong, Kotler and Opresnik, 2010). The distinction is often focused on
the temperature since many people require goods for the heating of the body and many want
cold items because of the hot climates.

b. Demography

The general population is categorised into multiple categories in which each group analyses
its needs and demands. The classification of the group is focused on various ages, younger
and elderly people and is focused on a household income trend (Keegan and Green, 2014).
Many families are more numerous, so PepsiCo has added jumbo bottles so it is enough.

c. Behaviour

The division expands on the answers, a huge number of people eat junk food, so persuade and
please these people, and several new items are launched to fight them. Most groups use junk
food to change the way they work. The pattern of transactions often relies on the income of
the family; certain countries have a high inflation rate, which is less costly than PepsiCo
needs to launch goods.
7P Marketing Mix

Figure 4: 7P Marketing Mix (Mayrhofer, 2012).

i. Product

The product must be consumer demand-based since the customer must settle on the supply
and comfort of the product according to the brand. PepsiCo has opened a company of baked
treats to offer items healthier to draw healthy clients (Keegan and Green, 2014). It has given
them a notable competitive advantage in the market as Coca-Cola and Monster Beverage are
two of the rivals of this company and they have not introduced any substitute products.

ii. Price

When many consumers rely on the price of the goods, a company pricing policy should be
successful. The transport costs and the job both included raising the price of an actual
commodity that influences the shopping trend directly (PepsiCo UK, 2020). They also sell
their products at a cheaper price than Coca-Cola and Monster Beverage. PepsiCo needs to
keep the price down since they partner for Walmart. It works to use cheap and recyclable
bottles so that their products can be sold at a cheap price.

iii. Place
The availability of goods in small companies is critical whether or not it is open to local
consumers or accessible. PepsiCo has been established in the United States and has now
spread to the Asian market as well as Europe (Armstrong, Kotler and Opresnik, 2010).
Drinking items from PepsiCo are readily accessible at supermarkets, bakery shops and
restaurants. They have expanded their market in broader areas than Coca-Cola and Monster
Beverage in the market of United Kingdom.

iv. Promotion

Pepsi sells its product especially to young people because they are more susceptible to fast
food. PepsiCo funded several athletic events and musical concerts. The creative marketing
promotions and product offerings of this company are more innovative than Coca-Cola and
Monster Beverage (Keegan and Green, 2014). PepsiCo launches its promotional offers to
provide value to its consumers through a variety of activities.

v. People

PepsiCo is known for hiring intercultural individuals and it fosters diversity. PepsiCo was
branded by women in the journal as the best diverse society. It also has secured the best talent
buying award (Lamb, Hair and McDaniel, 2012). PepsiCo recruits more talented people than
Coca-Cola and Monster Beverage as they have more efficient talent acquisition policy.

vi. Physical Evidence

This requires that the promotional and advertising campaigns of an organisation should be
physically noticeable. PepsiCo has a webpage with the background, product facts and current
promotions. They also build more vending machines than other beverage companies like
Coca-Cola and Monster Beverage.

vii. Process

PepsiCo aims to reduce the food sugar content and to incorporate better offerings and
healthier ingredients for new products. They always try to generate more effective strategies
than Coca-Cola and Monster Beverage. It concentrates on implementing biodegradable
bottles which should not affect the environment.

Competitors
The firms that manipulate a company's profitability are the rivals. PepsiCo competes directly
with many food and beverage firms who could affect revenue because of their tactics.
PepsiCo is competing closely with Coca-Cola because both affect the profits of one another
directly. Perfect Pepsi and water with Vitamin is one commodity that can affect the selling of
each other (Armstrong, Kotler and Opresnik, 2010). In comparison to the Nestle drinks, Pepsi
cola competed. This is the most significant key as Nestle sells juices to people with health
consciousness and Pepsi-Cola is known to be a non-healthy drink.

SWOT Analysis

Figure 5: SWOT Analysis (Lamb, Hair and McDaniel, 2012).

 Strengths
a. Their manufacturing service is special and successful.
b. They provide their trademark for their products.
c. Because of its premium service, PepsiCo has a strong reputation in the industry.
d. They have Research and development activities that actively work to develop technology-
based goods (Lamb, Hair and McDaniel, 2012).
e. Much of the expenditure is a publicity campaign investment.
f. The market has a good financial role.
g. They offer a wide range of advertisements focused on the activities.

 Weaknesses
a. PepsiCo does not take anything into account regions less technologically fitted.
b. The young population is the primary target of PepsiCo.
c. Many packaging o PepsiCo cannot be recycled and it is one of the major issues with the
environment.
d. For stores, there are very limited discounts. PepsiCo loses its profits because of the
health-conscious community.

 Opportunities
a. The participation of young people in activities such as music or athletics is growing
dramatically.
b. PepsiCo will extend its product range due to technical advances. The size of the
population is growing and people eat high volumes of junk food.
c. PepsiCo can operate in places which are less technologically developed and thus fewer
competitors (Lamb, Hair and McDaniel, 2012).
d. They may boost the revenue of an organisation by promoting activities such as music or
athletics.
 Threats
a. People became more mindful about health conditions while drinking soft drinks.
b. Many local rivals have been set up to present their goods at low prices.
c. The inflation rate is rising in many nations.
d. Internationally, law and order influence the company’s revenues.
e. More popular technical improvements in the modern age.
Conclusion
Marketing is an undertaking that each organisation depends on. A business focuses on its
marketing strategies only on its revenue and profitability. Any operation is the most
significant aspect and every strategy depends on a company's marketing. Companies like
PepsiCo should maintain that their market share is secure and that modern and creative
innovations are used to identify explicitly of their business and urge their clients. PepsiCo
must tend to access their goods from outside or from a broader audience.
References
Armstrong, G., Kotler, P. and Opresnik, M., 2010. Marketing.

Etzel, M., Walker, B. and Stanton, W., 2007. Marketing. New York: McGraw-Hill.

Groucutt, J., Leadley, P. and Forsyth, P., 2004. Marketing. London: Kogan Page.

Keegan, W. and Green, M., 2014. Global Marketing.

Lamb, C., Hair, J. and McDaniel, C., 2012. Essentials Of Marketing. Mason, OH: South-
Western Cengage Learning.

Mayrhofer, U., 2012. Marketing International. Paris: Économica.

Pasco, C., 2002. Marketing International. Paris: Dunod.

PepsiCo UK, 2020. Home. [online] United Kingdom - PepsiCo. Available at:

<https://www.pepsico.co.uk/> [Accessed 30 October 2020].