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Final Project
Course Brand Management

Topic Pepsi

Group members

 Zainab arif M21MBA057

 Amna Ali M21MBA062
 Maham Riaz M21MBA019

Submitted to Dr Samar Rahi

Hailey College of Banking & Finance, University of Punjab Lahore

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Contents
FIVE PRODUCT LEVEL OF PEPSI........................................................................................4

Core Benefit............................................................................................................................4

Basic Product..........................................................................................................................4

Expected product....................................................................................................................4

Augmented product................................................................................................................4

Potential product.....................................................................................................................5

CUSTOMER BASE BRAND EQUITY OF PEPSI..................................................................5

BRAND DIFFERENTIATION IN PEPSI.............................................................................5

Differentiation.....................................................................................................................6

BRAND KNOWLEDGE OF PEPSI......................................................................................6

Brand awareness.................................................................................................................6

Brand Loyalty.....................................................................................................................7

Brand positioning of Pepsi.........................................................................................................7

Pepsi Target Market Segmentation........................................................................................7

Pepsi Demographic Segmentation......................................................................................7

Pepsi Geographic Segmentation.........................................................................................8

Pepsi Behavioral Segmentation..........................................................................................8

Pepsi Psychographic Segmentation....................................................................................8

Pepsi’s competitors.................................................................................................................8

FRAME OF REFERENCE:...................................................................................................9

Choosing the Ideal Frame of Reference.............................................................................9

Point Of Parity......................................................................................................................10

Point of differentiation.........................................................................................................10

Brand Resonance......................................................................................................................10

Salience (identity-deep brand awareness)............................................................................11

Performance (meaning-point of parity and point of difference)..........................................11

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Brand imagery (meaning-point of parity and point of difference).......................................12

Judgment (customer responses-positive accessible reaction)...............................................12

Brand Feelings (customer responses-positive accessible reaction)......................................13

Personality traits.......................................................................................................................14

1. Sincerity........................................................................................................................14

2. Excitement.....................................................................................................................14

3. Competence...................................................................................................................14

4. Sophistication................................................................................................................14

5. Ruggedness...................................................................................................................14
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FIVE PRODUCT LEVEL OF PEPSI

There are five product levels: Core benefit, Basic product, expected product,
Augmented product, Potential product

Core Benefit
It is the service or benefit the product is offering. In a soft drink, a consumer is
buying the product to quench the thirst while dining at a restaurant, hotel or on a hot day

Basic Product
The core benefit triggers the basic product. For a soft drink, the basic requirements are
soda fizz & sweetened.

Expected product 
These are attributes expected by the consumer from the product. In case of Pepsi, it
must be served chilled to get the real taste of the drink.

Augmented product
 It is a differentiated product that is made to exceed a consumer's expectations. Pepsi
offers Diet Pepsi which is a non-sweetened soft drink for the ones who are health conscious
but are not ready to give up their loyalty for Pepsi while choosing a drink.

Potential product
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 This is where the company looks for innovate ways to satiate the consumer. It comes
for a new to the category/ sub-category and also hence forms a new life cycle. In augmented
product, when the company does a differentiation to the product, its oncoming in the market
is a potential threat to competitors. Diet Pepsi provides a sugar free carbonated drink which is
a different version of the Pepsi, catering to those who feel like having Pepsi but fear about the
calories.

CUSTOMER BASE BRAND EQUITY OF PEPSI

According to the recent statistics from Statista, Coca Cola was fifth in the list of the
world's most valuable brands with a brand value of 66.34 billion US dollars, while Pepsi had
the twenty-first position in the same list with a brand value of 20.8 billion US dollar in the
year 2018.PepsiCo announced it has launched its first-ever cash-back loyalty program, Pep
Coin by PepsiCo.

BRAND DIFFERENTIATION IN PEPSI

Differentiation strategy allows the PepsiCo to attract more and more consumers
towards the different features of the products. One of the ways in which PepsiCo is
differentiating its products is by its packaging, which attracts the consumers on the basis of
value that it gives to the consumers.
Differentiation and competitive advantage are achieved by the company with the adoption of
cost leadership and differentiation strategy. Distribution channels of the multinational are also
strong, which is also providing strategic advantage to the company over its competitors.

Pepsi Co focuses on reducing the commoditization of its products by providing

consumers with the products as per their requirements. Therefore, Pepsi Co is providing wide
range of portfolio to its consumers in the market.

Differentiation - Differentiation allows the business organization to differentiate their

products from the competitors in the market. In order to achieve differentiation PepsiCo
utilizes broad differentiation as the strategy in order to achieve competitive advantage over
the competitors in the market. Differentiation strategy allows the PepsiCo to attract more and
more consumers towards the different features of the products. One of the ways in which
PepsiCo is differentiating its products is by its packaging, which attracts the consumers on
the basis of value that it gives to the consumers

BRAND KNOWLEDGE OF PEPSI

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Brand awareness is top of mind for PepsiCo’s senior director of media strategy and
investment Katie Haniffy. And PepsiCo is focused on adjusting its brand awareness
campaigns in response to shifting consumer behavior, as well as pivoting to keep up with the
latest evolutions in ad tech.

Self-service DSPs play a major role in PepsiCo’s open-web programmatic strategy for
social media and other platforms. For years, the company has relied on its agency partner
OMD to manage campaigns through self-service ad platforms. And PepsiCo’s YouTube
advertising is largely conducted through Google’s Display & Video 360 campaign
management platform.

The Pepsi Brand Identity Re-Design challenges what it means to bring about a new

look to an established brand while retaining the brand’s legacy and essence at the same time.
The new brand identity is based on the idea that ‘less is more’. By removing unnecessary
design elements and reducing everything to a simple symbol, the new brand identity manages
to achieve more with less..

Brand Loyalty, At the individual product category level, 90.5 percent of regular Coke
and 88.9 percent of regular Pepsi drinkers remained loyal, and the vast majority of
consumers of low-calorie Coke (92.5 percent) and Pepsi (87 percent) also stuck to their
preferred brand. Loyalty rates were even higher at the modified brand level.

Brand Image; In the United States, Pepsi is made with carbonated water, high
fructose corn syrup, caramel color, sugar, phosphoric acid, caffeine, citric acid, and natural
flavors.

Brand positioning of Pepsi

As a brand, Pepsi has positioned itself as one that embodies young energy, and this
can be seen throughout their marketing and advertising campaigns. Pepsi's customers are
mainly aged between 13 and 35 years old from lower middle class to upper class with a busy
and modern lifestyle.

Pepsi Target Market Segmentation

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With a market analysis that considers Pepsi demographic segmentation, as well as its
geographic, behavioral and psychographic segmentation data, businesses can get to know the
Pepsi target audience.

Pepsi Demographic Segmentation

Pepsi demographics covers the age range of 15 to 45, both male and female. The
broad age group of Pepsi consumer demographics tends to exclude young children and
elderly individuals, who are less likely to enjoy the caffeine-laden beverage. However, it
includes singles, new marrieds without children, and couples with younger children and
teens.

The brand focuses on similar demographics for its more diet-conscious Pepsi Max
target market, who are interested in a tasty sugar-free cola option.

Pepsi Geographic Segmentation

Pepsi is sold in over 200 countries around the world, appealing to consumers in urban
and rural settings. In 2022, the company withdrew from the Russian market in response to the
invasion of Ukraine.

Pepsi Behavioral Segmentation

Pepsi consumer demographics comprise average to high income earners, including
students, employees and professionals. The target audience are regular and loyal users of the
product who choose it for its refreshment value and to enjoy the good taste, as well as Pepsi
consumption being part of their lifestyle habits. 

Pepsi Psychographic Segmentation

The Pepsi target audience includes members of the working, middle and upper
classes, with easygoing, determined and ambitious personalities. Pepsi continues to market to
a solid and growing base of consumers who want sugar free cola options. 

Pepsi’s competitors
Although it is well known that Coca-Cola is Pepsi’s top competitor by far, the list of
PepsiCo competitors also includes Dr Pepper Snapple and Red Bull. In fact, in 2021, Red
Bull was positioned as the second most valuable beverage brand worldwide. 
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Note that both Coca-Cola and Dr Pepper Snapple produce a range of soft drinks,
making Pepsi’s position in the market even tougher. Coca-Cola, for example, also markets
Sprite, Fanta and a range of energy drinks and fruit drinks

FRAME OF REFERENCE:
A brand’s frame of reference is the context in which consumers view it. The first
thing consumers will try to figure out is the category the brand belongs to. In many instances,
brand-category associations are straightforward: Pepsi belongs to the carbonated soft drink
category. Lululemon is a brand of yoga wear. Changing the frame of reference for these
established brands leads to brand stretching, which rarely produces the desired outcomes.
However, that doesn’t stop Management from trying: Pepsi recently announced Pepsi 1, the
company’s first Android-based smart phone that will retail in China for approximately $205.

Choosing the Ideal Frame of Reference

The ideal time to decide on a brand’s frame of reference is at the time of launch. The
more well-known the brand becomes, the more difficult its context. Here are some things that
should help you make the right decision:

Choose a competitive frame of reference that reduces the number of brands competing
for attention. You can achieve this by narrowing your focus so you don’t compete head-to-
head with established players for consumer’s attention.

Do not choose technology as a frame of reference. Sooner or later technology becomes

obsolete. The photography industry is the perfect example. What do most people associate
Kodak with? Film photography. The brand never managed to escape this strong association
when it was obvious that digital photography would replace film, although Kodak launched
the first digital camera in 1975.

The frame of reference should support your brand positioning. Your brand’s frame of
reference is the foundation of its positioning. It will determine the points of parity the brand
has to meet in order to be considered a legitimate player, and highlight opportunities to
differentiate.

Point Of Parity

Pop is that they are two very famous fresh soft drinks.
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Point of differentiation
The point of difference is the image that they reflect Pepsi is trendier and cooler with
an image of young people and celebrities while coca cola is an emotional brand. This is due
to the advertising campaigns they both spread.

Brand Resonance
Brand resonance is basically creating intense kind of feeling among customers and
Pepsi brand resonance is explained through a pyramid

Stages of brand development

4.relationship

3.responses

2.meaning

1.Identiy

Through this pyramid we get to know that the brand identity comes from salience,
meaningfulness comes from performance and imagery, customer responses come from
judgment and feeling and relationship comes from resonance

Salience (identity-deep brand awareness)

Pepsi is one of the highest salience brands because of its breath and depth of brand
awareness. the customers of Pepsi can identify the brand through the product category
model. Brand salience is an important first step in building brand equity, but is usually not
sufficient. Pepsi brand identity is through fun, community, fresh drink and main soda

Performance (meaning-point of parity and point of difference)

Brand performance transcends the product’s ingredients and features to include
dimensions that differentiate the brand
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 Primary ingredient and supplementary features:

The primary ingredients are Carbonated Water, High Fructose Corn Syrup, Caramel
Color, Sugar, Phosphoric Acid, Caffeine, Citric Acid, Natural Flavor. Pepsi is sweeter
than Coke, so right away it had a big advantage in a sip test. Pepsi is also characterized by
a citrusy flavor burst, unlike the more raisin-vanilla taste of Coke

 Product reliability, durability, and serviceability

Reliability measures the consistency of performance over time and from purchase to
purchase and Pepsi is much reliable because of their performance over time
 Service effectiveness, efficiency, and empathy
Service effectiveness measures how well the brand satisfies customers’ service
requirements. Service efficiency describes the speed and responsiveness of
service. Finally, service empathy is the extent to which service providers are seen as
trusting, caring, and having the customer’s interests in mind
 Style and design.

Pepsi is an iconic American soda brand, and their logo is just as recognizable as the sweet
bubbles of their celebrated drink.
Interestingly, the Pepsi logo has gone through a number of redesigns, with a complete
shift in concept and feeling as the brand grew over time. Yet even non-soda drinkers (and
Coke-lovers!) can instantly identify Pepsi’s logo and know what it represents.
 Price
Most of PepsiCo's products are priced based on the market-oriented pricing
strategy. The company's objective in using this strategy is to ensure that its prices are
competitive, based on other firms' prices and prevailing market conditions

Brand imagery (meaning-point of parity and point of difference)

One set of brand imagery associations is about the type of person or organization who
uses the brand. This imagery may result in customers’ mental image of actual users or more
aspirational, idealized users. Pepsi use the images and colors for there branding such as blue
color, joker and it is used to attract the teens as well as adults

Judgment (customer responses-positive accessible reaction)

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Brand judgments are customers’ personal opinions about and evaluations of the brand,
which consumers form by putting together all the different brand performance and imagery
association

Brand Quality

PepsiCo has strong global quality and food safety standards. We use qualified
ingredients, approved suppliers and follow all applicable regulations issued by regulatory
authorities. Our products are traceable, which enables us to quickly investigate and address
any potential concerns in the marketplace

Brand Credibility

Customers may also form judgments about the company or organization

behind the brand. Brand credibility describes the extent to which customers see the brand as

credible in terms of three dimensions: perceived expertise, trustworthiness, and likability.

Pepsi is seen as

(1) competent, innovative, and a market leader (brand expertise)

(2) dependable and keeping customer interests in mind (brand trustworthiness)

(3) fun, interesting, and worth spending time with (brand likability)

Brand Consideration

Pepsi is the famous brand, known by almost every individual around the world. Its
red, white and blue logo has caught many eyes and attention and it remains in the
consideration set of customers

Brand Superiority

Brand equity is a major strength of Pepsi. It has a strong image and large customer
base. Brand equity does not just help it with marketing its brand and product portfolio but
also helps retain customers. It has strengthened its brand equity by investing in quality and
technological innovation

Brand Feelings (customer responses-positive accessible reaction)

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Brand feelings are customers’ emotional responses and reactions to the brand. Brand
feelings also relate to the social currency evoked by the brand there are different types of
brands feeling in Pepsi

 Warmth:
The brand evokes soothing types of feelings and makes consumers feel a sense of
calm or peacefulness. Consumers feel sentimental, warmhearted, or affectionate about
pepsi
 Excitement:
Pepsi makes consumers feel energized and that they are experiencing something
special. Pepsi generate a sense of elation, of “being alive,” or being cool, sexy among
teenagers as well as adults
 Social approval
Pepsi gives consumers a belief that others look favorably on their appearance,
behavior, and so on
 Self-respect:
Pepsi makes consumers feel better about themselves; consumers feel a sense of pride,
accomplishment, or fulfillment

Personality traits
Pepsi have targeted its customer through five dimension of personality traits

1. Sincerity
Pepsi had targeted the customer through sincerity because they are honest, it is family
oriented, real and original in taste

2. Excitement
Excitement is also present because the customers of Pepsi are daring, exciting to try their
new products and time by time Pepsi is launching its new products which are (daring,
spirited, imaginative, and up-to-date)

3. Competence
Pepsi is (reliable, intelligent, successful) brand among customers therefore Pepsi is easily
distinguished from its competitors and is successful
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4. Sophistication
A sophisticated brand is refined, lavish and typically pricey. Sophistication attracts a very
specific group of people as Pepsi does

5. Ruggedness
Rugged brand traits include adventurous, outdoorsy, and tough. Pepsi is built to last and
seen to be hard-working, strong and authentic

The dominant brand personality for Pepsi was excitement. Paired samples t-test results
showed that the dominant brand personality of Pepsi would be transferred to the consumer,
followed by sincerity and ruggedness.