You are on page 1of 33

MARKETING STRATEGY ANALYSIS OF

STING
Xtreme Energy Ultimate Taste

Pepsi International is a world renowned brand. Very well organized multinational company, which operates almost all over the world. In Pakistan It also has proved itself to be the No.1 soft drink. Now days Pepsi is recognized as Pakistanis National drink Pepsi's greatest rival is Coca Cola. Coca Cola has an international recognized brand. Cokes basic strength is its brand name. Pepsi with its aggressive marketing planning and quick diversification in creating and promoting new ideas and product packaging, is successfully maintaining is No.1 position in Pakistan. Pepsi is operating in Pakistan, through its 12 bottlers allover Pakistan. Pepsi has given franchise to these bottlers. Bottlers, produce, distribute and help in promoting the brand. Pepsi also launched its fast food chain KFC i.e. "Kentucky Fried Chicken.

To be the world's premier consumer Products Company focused on convenient foods and beverages. We seek to produce healthy financial rewards to investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in everything we do, we strive for honesty, fairness and integrity.

To be the world's best beverage company. Being the best means providing outstanding quality, service, cleanliness and value, so that their every customer is contented and happy with their products.

To increase the value of their shareholders investment through sales growth, cost control and wise investment of resources.

STING is a new introduction of PepsiCo and recently launched in Pakistan. First of all we would like to describe the history of Pepsi Co. This may help us to understand the vision and the mission of company.

Sting has 86% market share in Pakistan in Energy Drinks market.

Carbonated water Sugar Citric Acid Artificial flavour Taurine Potassium Sorbate Caffeine Sodium Benzoate Modified Food Starch Panax Ginseng Extract

Pepsi and Coke are close competitors. It means that both have direct competition in the market, their far ahead products are close substitutes for one another. But Coke doesnt have any energy drink in Pakistan, so they dont compete in this category. On other hands REDBULL is Stings direct competitor. But Sting is from Red Bull as Sting is available throughout Pakistan and is very much economical as compared to Red bull.

Distant competitors have no direct impact on Stings sale. These competitors have just 2 percent market share.

Speed Tiger X Blue Horse

It means that you divide the target market in to different groups. Market consists of buyers and buyers differ in one or more ways. They may differ in wants, resources, locations and buying practices. Through market segmentation companies divide large, heterogeneous markets into smaller segments that can be reached more efficiently and effectively with products and services that match their unique needs.

Demand of Pepsi products is more than its competitors. Company has a very established name and a good reputation. Pepsi has large market share than its competitors. As the target customers of Pepsi is young generation, so Pepsi has more brand loyal customers. Most of the customers are satisfied with the price of the Pepsi. Pepsi is an international company and it has a very strong position internationally. The environment of factory is very good and attractive. Pepsi spends a lot of budget on its advertising. Pepsi has a very vast distribution channel and it is easily available everywhere. Employees are also motivated. Pepsi offers many discount schemes for customers time to time. Pepsi Cola is sponsoring sports, musical concerts, walks. The location of the Pepsi plant is utilized that all major markets of Lahore are within the reach of the Pepsi plant within 30-45 minutes.

Pepsi does not offer any sort of incentive or discount to its retailers. Pepsi target only young customers in their promotions. Crown of the disposable bottle is not good. Demand of disposal bottle is declining. Pepsi tin pack is not available in far off rural areas. Pepsi is not considering many potential outlets like hotels, college canteens etc.

Company may start entering rural areas also. The company may also diversify its business in some other potential business. Increased interest of people in musical groups, cultural shows and sports has provided an opportunity for Pepsi to increase its sales through them.

The main competitor of the company is the Coca Cola. At the international level, Pepsi has a very strong competition with Coke. Coke has started its advertisements more effectively to increase their demand and it is a very strong threat for Pepsi. Cola drinks are not good for the health so the awareness level of the people is increasing which is a big threat to the company.

The target market of PepsiCo Sting energy drink basically comprises of all the people who need energy in their life while working. These people could be students, office workers, sportspersons and athletes etc.

Extra Energy for the Extra work hours Sting Energy Drink consumers are males who needs to work extra hours Males who need extra energy to work those extra hours at work to provide the needs of their families Direct Competitor is Red Bull There is no ready to drink energy drink that tastes good and provides the needed energy Energy Drinks is 48% of the Sports and Energy Drink Industry Sting Energy Drink offers deliciously-flavored energy drinks Priced 1.2% lower than its direct competition Uses advertising, events, and word of mouth Mostly available in 24 hours convenient stores

Promotion is an attempt to draw attention to a product or

business in order to gain new customers or to retain


existing ones

Company often refers to promotion above the line (ATL)

and below the line (BTL)

One of the important objectives of Sting was to capture market share in short time

Sting has been using its promotional campaign in a very


decent and effective manner

to increase awareness of the product to reach a target audience that may be geographically dispersed

to remind the consumer about the product to show a product is better than its competitor to develop or improve the image of the product using different media

ATL is a type of advertising through media such as television, cinema, radio, print, web banners and web search engines to promote brands This type of communication is conventional in nature and is considered impersonal to customers It is much more effective when the target group is very large and difficult to define

The ATL promotion has helped the company to establish brand identity Everything done prior to a products actual entry into a retail outlet is ATL The advertisements were running on the Geo News, Aag, Duniya News, Geo Super and Ten Sports etc with high frequency Other than the advertisements on television, disruptive radio executions are also on most radio channels. These channels include FM 89, 100 and 103

The message that Sting tries to deliver to its audience using ATL promotions is the Extreme energy and ultimate taste

Below the line promotion refers to forms of non-media communication or advertising, that has become increasingly important in the communications mix of many companies BTL was efficient and cost-effective for Sting to target a limited and specific group The Sting has strategically focused to come in direct contact with its target market Another BTL technique involves sales personnel deployed at retail stores near targeted products

This technique may be used to generate trials of newly launched products BTL can actually lead to a sale BTL promotions are highly measurable It gives Sting valuable insights into their return-on-investment

Price promotions Gift with purchase Competitions and prizes Frequent user / loyalty incentives Point-of-sale displays Samples and free trials

Sting had planned to do BTL activities in the main cities of the country that includes Lahore, Karachi and Islamabad This BTL campaign was run between the months of September till November Young students from LUMS, LSE and BNU were hired and trained in order to run the promotional activity

The main source of attraction of activity was the customized design of Hummer with a big can of Sting at the top Along with the Hummer the customized design choppers were also used in order to attract the public The team wears the special suit that was of red and black color while they were on the activity

Bohemias concert sponsorship:


The concert of well known Indian rapper Bohemia was sponsored in Lahore by Sting.

F.C College Drama Festival:


The promotional team of Sting was present at the event with their stings, Hummer and choppers. The ticket of the drama was of worth 50 rupees. With each ticket a free can of Sting was being distributed. The gathering over there was of approximately 700 people. The feedback taken from the people present at that time was highly positive. They not only like the taste but also its packaging and the theme of the campaign.

(Principal of F.C College Peter H. Arm cost along with the head of Sting campaign team)

F.C College Drama Festival: Hummer and choppers The ticket of the drama was of only 50 rupees With each ticket a free can of Sting was being distributed The gathering over there was of approximately 700 people The feedback taken from the people present at that time was highly positive

Sting distributed 70,000 cans in all branches of KFC Lahore. KFC introduced the deal with the name of Hot Wings. A can of sting was to be given free along with the every deal

During this promotional campaign between the months of September till November Sting distributed approximately 3500 to 4000 cans daily. The reason behind it was that to give people a trial so that without paying money out from their pocket they get to know of the taste. This sampling has helped the company and boosts its sales. During this campaign the sales of sting increased by 300 to 400 percent

Pepsi market coverage system needs a lot of information. It is recommended, that the bottlers and the company should invest more in their distribution channels, arrange more trucks for transportation. Sales-force also needs improvement. It needs to redefine their objectives. Their objectives should be: To provide good service and placing the products in time and regularly. To listen the complaints of the retailers and try to rectify their complaints

To provide the retailers merchandizing equipment on time to time, and they should make sure that products are merchandized properly, in the outlets. To convey all promotional schemes to retailers and to make a sure that trade is part of all consumers and promotion. They should make sure that billing is correct. Company should announce discount packages when it is sure that it can supply the products in time for the discount or special offers.

Pepsi should not sacrifice its quality at any cost. It should test its Cola with much care. Change in taste is often due to the sugar used in it. Company should specify standards for its suppliers who supply sugar water. Research & development department should play active role in achieving product quality.