ice hot tea

8/7/2019 Ice hot TEA

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Marketing Plan Hot Ice Tea

Shayan Maqsood Page 1 of 31L3F08MCOM5301

Table Of Contents

Sr. ParticularPage

No.

01 Executive Summary 02

02 Company Description 03

03 Situation Analysis & Market Summary 04

04 Trends 05

05 Profitability & future growth potential 06

06 Competition 06

07 Target Market 08

08 Distribution 08

09 Positioning & Advertising 09

10 SWOT Analysis 10

11 Objectives & Goals 13

12 Marker Strategy 14

13 y Segmentation 1414 y Targeting 1615 y Positioning 1716 y 4 P's 1717 Action Plan 30

18 Budget 3119 Control 32


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EXECUTIVE SUMMARY

The following Marketing plan is about to introduce the new innovative product by Pepsi that is

named as Hot Ice Tea. This will be a convenient product that will be readily available to quench

the thirst of our customers and will also give the nutritional benefits of Tea. The main

characteristics of this product will be the hot and cool nature of the product i.e. it can be served as

a hot drink as well as a hot drink; in both way it will give the same satisfaction to the customer and

there will be no weather constraint for this product and it can be used through out the year. So the

Hot Ice Tea will not be a seasonal drink and this will be the main source of success of the product.

The product will be introduced to capture the 20% market share in the category of functional

drinks market. The market is still unserved for this segment and company will be going to

introduce a new a market trend as well as going to challenge its competitors. This product will lead

the company in functional drink market and will carry the company on the top spot. The target

market for the product will be the health conscious and energetic customers. Our product will

broadly describe the main benefits of tea, Studies continue to show the beneficial properties of

teas, with health benefits ranging from lower cholesterol levels to improve arterial health and

decreasing chance of cancer. This positive press has definitely increased the demand for tea. In the

first year of operation the Hot Ice Tea will be introduced in Pakistan because there are more

potential and enthusiastic customers and we can get result more fastly about the success of

product.

The Company will increase its market share through targeted advertising to increase the number

customers who want convenience and are looking to have a drink of unique nature which will give

them taste, energy and the nutritional benefits of tea.


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COMPANY DEESCRIPTION

PEPSI INTERNATIONAL

HISTORY

PepsiCo is a world leader in convenient foods and beverages, with revenues of about $27 billion

and over 143,000 employees. The company consists of the snack businesses of Frito-Lay North

America and Frito-Lay International; the beverage businesses of Pepsi-Cola North America,

Gatorade/Tropicana North America and PepsiCo Beverages International; and Quaker Foods

North America, manufacturer and marketer of ready-to-eat cereals and other food products.

PepsiCo brands are available in nearly 200 countries and territories.

Many of PepsiCo's brand names are over 100-years-old, but the corporation is relatively young.

PepsiCo was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay. Tropicana was

acquired in 1998 and PepsiCo merged with The Quaker Oats Company, including Gatorade, in

2001.would entertain the listener with the latest musical selections rendered by violin or piano or

both. The new name, Pepsi Cola, is derived from the two of the principle ingredients, Pepsin and

Kola Nuts. It was first used on the August 28. At that time, Bradhams advertising praises his drink

as Exhilarating, invigorating, aids digestion.

In 1992 Pepsi-Cola formed a partnership with Thomas J. Lipton Co. Today Lipton is the biggest

selling ready-to-drink tea brand in the United States. Outside the United States, Pepsi-Cola

Company's soft drink operations include the business of Seven-Up International. Pepsi-Cola

beverages are available in more than 190 countries and territories.In Asia, they selected Lahore to make their regional office. This was done in 1970. This regional

office is monitoring all the operations carried out in South West Asia. As in Pakistan, they only

entered beverage industry. They have eleven bottlers covering whole Pakistan. The plant operating

here is Riaz Bottlers (Pvt) LTD. This plant was established at Lahore in 1974. The total capacity of


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the plant is 30,000 cases per day. They have four filling lines in the plant operating on the three

shift bases. Each shift is of eight hours. They have permanent work force of 750 people and they

employee approximately 1000 people more on temporary basis during summer season.

(Source www.pepsico.com)

Situation Analysis

Pakistani lifestyle and work habits have made convenience a necessity. As employers demand for

productivity from their employees, consumers are more pressed for time. In addition, the shaky

economy has made Pakistani fear for their jobs; thus, any product that can fill the consumers' need

for convenience and speed are almost automatically embraced into the Pakistani life style. Hot Ice

Tea offers a unique drinkingexperience to its consumers.

Market Summary

Industry Analysis In 2007, the tea industry reached the $1.7 billion category and it is expected to

continue growing indefinitely (Mintel2007). Market analysts believe the tea industry will continue

to boom and is not expected to reach saturation level in the near future. The favorable movement

in the tea industry can be attributed to two major factors: a) consumers need for convenience and

time-saving services; and b) the positive press given to tea.

Trends

For the last decade, the health benefits of tea have gained wide coverage in the media. Studies

continue to show the beneficial properties of teas, with health benefits ranging from lower

cholesterol levels to improve arterial health and decreasing chance of cancer. This positive press

has definitely catapulted the demand for tea.

Both the need for convenience and positive press on tea have spurred an increase in sales of tea

products, specifically ready-to-drink (RTD) teas sold in single-serve containers Recognizing this

trend, various companies in the tea industry have come up with innovative products to take


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advantage of the booming market for ready-to-drink teas. Lipton tea, one of the global leaders in

refreshment brands, launched new products to meet the growing the need for ready-to drink teas

and introduced innovative product line to capture the health-conscious market.

Today, while the soft drink industrys value has increased , the volume sales of carbonated soft

drinks has declined due to a large proportion of consumers who are opting for the trend towards

healthier alternatives in the functional drink segment (energy drinks, smoothies, milk & juice

drinks, sports drinks) as well as bottled juices and water. Companies have been actively engaged in

new product developments in order to counter the growing concerns about negative health impacts

of high-fructose drinks, but also to increase the demand in a market where product offerings are

quickly maturing. New flavor introductions and health-conscious formulations have been launched

in an attempt to offset the decline in carbonated soft drink sales. The functional market is expected

to show sustained growth and consumer interest in the future years as consumption shifts to

trendier, healthier and more sophisticated product.

Profitability & future growth potential

In 1993, Concentrate Producers earned 29% pretax profits on their sales, while bottlers earned 9%

profits on their sales, for a total industry profitability of 14%. While the functional drinks sector

only accounts for 3.7% of the total soft drinks sales in 2004, estimates are forecasting a growth of

7.3% in sales and 11.0% in volume consumption by 2009. (Source wikipidia)

Competition

Pepsi's top competitors for the soft drinks industry are coca cola (43.6%) and Cadbury-Schweppes

(15.8% of market), which combined, represent about 58% of the total market. Pepsi's share is

42.7% of the total soft drinks market.In the functionaldrinks sector,PepsiCo is the current market

leader with 60.5% of the market shares in 2007. Coca-Cola Co is second with 32.8%. Hot Ice Tea

will launch into a currently un served subset of that market (RTD Ready-To-Drink Hot Ice Tea),

which is until now un existing. It is anticipated that the following brands could potentially compete

with Hot Ice Tea in the functional drinks market: Brisk, Lipton Iced Tea, Sobe (owned by


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PepsiCo), as well as Snapples and Hawaiian Punch (owned by Cadbury/Schweppes). Hot Ice Tea

also creates a potential situation for cannibalism with Pepsi's very own brands of iced tea and other

functional drinks.

Consumers firstly decide that they are going to have a soft drink. Then they compete brands with

each other. Like they compete Coke with Pepsi and Sprite with 7up and team .So the major

competitor of PEPSI is Coke.

When they motivate to any other brand or on PEPSI its in instinct basically that based on

messages derive certain feelings.

But PEPSI thinks in a different way, they believe that RC Cola, new coming AMRAT Cola, and

all juices, even they take water and tea as their competitors.

DIRECTCOMPETITOR

COCA COLA is the direct competitor of PEPSI and all other soft drinks in the market.

The Coca-Cola Companys core undertaking is to benefit

and refresh everyone it reaches. Founded in 1886, we are

the worlds leading manufacturer, marketer, and

distributor of non-alcoholic beverage concentrates and syrups, which are used to produce nearly

400 beverage brands that make up for our wide portfolio. Our corporate headquarters are

established in Atlanta, and we are holding local operations in over 200 countries around the world.

Our activities cover all sectors of the beverage industry. We are the second leading player in

functional and Asian specialty drinks, while ranking number one in value for the ready-to-drink tea

sector. (Company source)

INDIRECT COMPETITOR

All the tea brands and water is in indirect competition with PEPSI.

Source: (PEPSI website)


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TARGET MARKET

There are two major target markets for ready-to-drink Hot ice tea.

y One group is the consumers on the go. These are the employees, students, and otherconsumers who lead a busy lifestyle. The hectic Pakistani lifestyle demands for optimize

productivity with lesser time-consumption. Thus, there is a need for products that are

accessible and readily available. Convenience has dominated the market, particularly the

food and beverage industry.

y The other group is made up of health conscious consumers, specifically the younger whodemand anything healthy. The positive reviews as well as the studies on the benefits of tea

drinking have stirred an interest in tea drinking.

Distribution

The current market for Hot Ice Tea is fragmented, since the distribution is restricted to local outlets

and selling points such as counters and small Hot Ice Tea shops in scattered locations. However,

direct competition from these local players is not anticipated, since the marketing roll-out will

initially emphasize on product awareness and both sales channels do not reach or serve the same

market (retailing vs. counter/restoration). A strong distribution system already exists with PEPSI,

since partnerships and channels are already in place. This will facilitate the products reach into its

target market.

1. Retailing2. Wholesaling


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Positioning

Hot Ice Tea will be a bottled beverage and will be positioned as the only ready-to-drink Hot Ice

Tea product available on the market. The beverage will have a differential advantage that it can be

drink as hot drink and can be taken as cold drink. It will bring an entirely unique drinking

experience to its consumers. It will present itself as a funky and unusual alternative to traditional

tea while providing the great taste of authentic fruit juice in an attractive and convenient

packaging.

(www.pepsico.com)

Advertising

y Informative AdvertisingThere will be Informative Advertising during market of Hot Ice Tea and that will help company:

1. Informing the market of a price2. Describing available services3. Correcting the false impression4. Building a brand and company image

5. communicating customer value6. Telling market about a new product7. Explaining hoe the product works8. Suggesting new uses for a product

y Persuasive AdvertisingIt will help marketers to:

1. Building brand preferences2. Encouraging switching to your brand3. Changing customer's perception of product attribute4. Persuading customers to purchase now5. Convincing customers to tell others about product

SWOT Analysis (Source PEPSI web site)

STRENGTHS WEAKNESSES

y Pepsi has a broader product line andoutstanding reputation.

y Merger of Quaker Oats produced synergy Pepsi hard to inspire vision and direction forlarge global company.


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across the board.

y Record revenues and increasing marketshare.

y Lack of capital constraints (availability oflarge free cash flow).

y Great brands, strong distribution,innovative capabilities

y Number one maker of snacks, such as cornchips and potato chipsy PepsiCo sells three products through the

same distribution channel.

Not all PepsiCo products bear the companyname

PepsiCo is far away from leader Coca-cola inthe international market demand is highlyelastic.

OPPORTUNITIES THREATS

y Food division should expandinternationally

y Noncarbonated drinks are the fastest-growing part of the industry

y There are increasing trend toward healthyfoods

y Focus on most important customer trend -"Convenience".

F&B industry is mature

Pepsi is blamed for pesticide residues in theirproducts in one of their most promising emerging

market e.g. in India

Over 50 percent of the company's sales comefrom Frito-Lay; this is a threat if the market takes adownturn

PepsiCo now competes with CadburySchweppes, Coca-Cola, and Kraft foods (becauseof broader product line) which are well-run andfinancially sound competitors.

Size of company will demand a varied marketingprogram; Social, cultural, economic, political and

governmental constrains.


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SWOT Analysis of Pepsi Co.

Strength

Pepsi has a broader product line and outstanding reputation.

Merger of Quaker Oats produced synergy across the board.

Record revenues and increasing market share.

Lack of capital constraints (availability of large free cash flow).

y Great brands, strong distribution, innovative capabilities

Number one maker of snacks, such as corn chips and potato chips

PepsiCo sells three products through the same distribution channel.

For example, combining the production capabilities of Pepsi, Gatorade and Tropicana is a big

opportunity to reduce costs, improve efficiency and smooth out the impact of seasonal

fluctuations in demand for particular product.

Weakness

Pepsi hard to inspire vision and direction for large global company.

Not all PepsiCo products bear the company name

PepsiCo is far away from leader Coca-cola in the international market demand is highly

elastic.

Opportunity


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Food division should expand internationally

Noncarbonated drinks are the fastest-growing part of the industry

There are increasing trend toward healthy foods

Focus on most important customer trend - "Convenience".

Threats

F&B industry is mature

Pepsi is blamed for pesticide residues in their products in one of their most promising emerging

market e.g. in India

Over 50 percent of the company's sales come from Frito-Lay; this is a threat if the market takes

a downturn

PepsiCo now competes with Cadbury Schweppes, Coca-Cola, and Kraft foods (because of

broader product line) which are well-run and financially sound competitors.

Size of company will demand a varied marketing program; Social, cultural, economic, political

and governmental constrains.

Objectives and GoalsCompany is centered on these objectives:

With the expected growth of the billion dollar ready-to-drink ice tea market, Hot Ice Tea is poised to

capture a bigger share of the market with an aggressive marketing strategy: from packaging to

advertising.


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Short Term Goals:

Improve market presence by 20%

Short-Term Objectives

Aggressive Marketing Strategy PepsiCo can take advantage of the positive press on the health benefits

of tea to boost the sales of its hot ice tea product line. The company can use recent studies on the healthbenefits of tea as the basis of its press releases and advertising campaigns.

Improve Packaging The Hot Ice Tea will be introduced in two sizes: the 250ml bottle and 1/2 liter

bottle. PepsiCo can come up with other packaging sizes to ensure that consumers will have other

choices and that Hot Ice Tea will be easily and readily available to consumers.

Improve Shelf Presence PepsiCo can make a deal with retailers ensure retail shelf space and

prominent positioning for Hot Ice Tea. Although an average shopper may not notice what brands are

positioned in prominent places on shelves or how much room is allotted to each manufacturer, shelf

space and positioning as make or break factors in introducing new products

Long-Term Goals:

World Number One ready-to-drink ice tea

Long-Term Objectives:

Product Innovation PepsiCo must continue its innovative research and development strategy to comeup with new flavors and products. PepsiCo has extensive research facilities on product improvement.The company can use its resources and professional expertise to come up with new flavors that willsuit the continuous demand for healthy ready-to-drink hot ice tea. With aggressive marketing strategyand product positioning, Hot Ice Tea is ready to take the global lead in ready-to-drink tea industry.


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MARKETING STRETEGY

SEGMENTATION

Segmentation variables for consumer market of

Hot Ice TeaTYPE VARIABLES PARTICULARS

World region orcountry

Nationwide (all provinces and territories) withemphasis on urban / metropolitan areas, andadapted strategies for all geographical groups

City or Metro size 5000-20,000,upto 400,000 and over

Density Urban, suburban

Climate Northern southern eastern westernAge 12-19,20-34,35-49,50-64,65+

Gender Male , Female

Family size 1-2,3-4,5+

Family Life Cycle Young ,single married under 18 older

Income Under 10,000 and over 100,000

Occupation Professional ,proprietors, clerical salespersons

Education Grade school or less high school ,graduateand above

Race All (Asian ,Hispanic, black ,white)

Generation Generation y

Social class Working class, middle class, upper middleclass, lower uppers ,upper uppers

Life style Achievers and strivers

Personality Compulsive ,authoritarian gregarious,ambitious

Occasions Regular occasion and Special occasion

Benefits Quality, convenience, nutritional

User Status Non-user, regular user, first time user


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Usage rate Light user , medium user , heavy user

Loyalty status None , medium , strong

Readiness stage Un aware , aware ,interested , intended tobuy

Attitude towards

product

Positive, enthusiastic , indifferent


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TARGETING

Segment identification:

RTD (Ready-to-drink) bottled Hot Ice Tea, to be established within the Functional Drinks sector.

Segment needs:

The product will have both physiological need (hydrating and nutritional value) and social needs

(perception of a social, fun drink with a sense of belonging within peer consumer groups)

Segment trends:

The current trends include a shift away from junk foods and carbonated drinks, a growing interest

for healthier / beneficial products for the mind and body the trend towards the availability of on-

the-go products for those with an active lifestyle, as well as the trend for personalization through

customization (or for beverages, through variety-seeking in a wide introduction of flavours.

(www.oppapers.com)

Segment growth potential:

Statistical reports anticipate a segment growth of 1.72% over the next 9 years (2015) for the 10-29

years old subsets.

(www.oppapers.com)


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POSITIONNING

Positioning strategy

The only RTD bottled Hot Ice Tea available. Funky & eye-catching bottle, functional packaging,

premium-priced, cool, new and unusual, unique drinking experience, aspects of play variety of

flavors, sweet, refreshing, for hip & young people, healthier alternative to heavy-sugar drinks.

POSITIONINGSTATEMENT

To young active soft drink customers who have little time for sleep, Hot Ice Tea gives you the

nutritional benefits of tea and keep you awaken. You can take it while on the go, now it's your

choice that you can chill it and you can hot it. There is no boundary of season now because Hot Ice

Tea can be taken from both aspects hot drink and cold drink.

PRODUCT

PRODUCT STRATEGY

The core

o Hot Ice Tea beverage in a pre-bottled, ready-to-drink format.

The actual product

The Hot Ice Tea will be a convenience product.

o Packaging and labeling:

1. Twist Cap2. freshness seal


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3. Easy to grab bottle4. Flavor5. logo of Hot Ice Tea6. Slogan7. Ingredients8. PEPSI product9. 250 ml bottle10.Nutritional Details11.Sweetened or Diet

o Branding:Colorful, aspect of play, round shaped, prominent Hot Ice Tea logo written in modern font.

o Trade name:Hot Ice Tea , a PEPSI product

o Brand personality:Energy, funky, cool, functional, original, funny, healthy, etc.

o Brand equity:PEPSI provides a quality, consistent, innovative and accessible soft drink reputation.

o Product life cycle:

Hot Ice Tea is a low-learning product. With a strong marketing campaign, sales [will] begin

immediately and the benefits of the purchase are readily understood Since Hot Ice Tea is prone to

product imitation, Pepsi's strategy is to broaden distribution quickly, which is currently feasible

thanks to the companys high manufacturing capacity.

o Product class:


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Food & beverage Soft Drinks Functional Drinks Hot Ice Tea follows the practice ofproduct

modification PEPSI is introducing an existing beverage (Hot Ice Tea) but redefines the drink with

a new, more convenient package. Hot Ice Tea will now become a widely available drink in

multiple retailing (distribution) channels.

Product Quality

y Performance QualityThe performance quality of Hot Ice Tea will be that it will produce what it functions, and the

main function of Hot Ice Tea is the hot and cool nature of product. Customer can take it as a

hot drink by got hot by oven and can take it as cool drink by chilling it in deep freezer it is up

to the customer.

y Conformance QualityThe conformance quality of Hot Ice Tea will be that it will be free from any defects; it will

deliver its targeted performance and quality

PRICE

PRICE STRATEGY

The price strategy that will be undertaken should consider the following aspects:

1. Consumer demand2. The product lifecycle3. Potential substitutes

Customer demand


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Customer demand is a crucial factor which is driven by tastes, income and availability of others

similar products at a different price.For a lot of consumers, value and price are highly related:

the higher the price, the higher the value. Consequently, Pepsi's intention to position Hot Ice

Teaas a unique, innovative and attractive product gives it a certain control overHot Ice Teaprice.

To be able to implement higher pricing though, the

minimization of the non-monetary costs to customers should

also be include along with awareness of the product (notably

by advertising) and value (benefits).

The product lifecycle

The company should take advantage also to the fact that the

newer the product and the earlier in its lifecycle the higher the

price can usually be. It ensures a high profit margin as the early adopters buy the product and the

firm seeks to recoup development costs quickly and it also brings a certain prestige to the product.

(Source netmba.com)

y Product development

It begins when the company finds and develops a new product idea. During product development,

sales are zero and the company's investment costs mount.

y Introduction

Is the period of slow sales growth as the product is introduced in the market. Profits are

nonexistent in this stage because of the heavy expenses of product introduction.

y Growth

Is a period of rapid market acceptance and increasing profits .

y Maturity


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Is a period of slowdown in sales growth because the product has achieved acceptance by most

potential buyers. Profits level off or decline because of increased marketing outlays to defend the

product against competition.

y Decline

Is the period when sales fall off and profits drop. (Ref. from book)

Potential substitutes

PEPSI is constrained by the monopolistic market in which it competes. The main characteristic

however is product differentiation.

Pricing strategy

The point here is that PEPSI can not set a price that is too high because competitors will be

attracted by potential profits and will follow by a lower price. After having taken all the important

factors into consideration, there are five price-level fixing approaches seem appropriate.

1. Cost Based Pricing

One of the central objectives of this project being to become the market leader in functional drinks,

PEPSI is willing to stay among the top competitors, if not becoming the greater, by achieving a

certain target profit. This could be obtained by establish a price that will largely cover variable and

fixed costs while bringing tremendous profits.

2. Value Added Pricing

Competitors and potential substitute's prices can also be part of the strategy. Having a higher price

could make customers aware of the additional benefits and the higher quality of Hot Ice Tea.


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3. Value based Pricing

The company sets its target price based on customer perceptions of the product value. The targeted

value and price then drive decisions about product design and what cost can be incurred. As a

result pricing begins with analyzing consumer needs and value perceptions, and price is set to

match consumer's perceived value.

4. Market Penetration Pricing

The company can set a low price for a new product in order to attract a large number of buyers and

a large market share.

5. Break-even pricing

The company has to make some strategies for break-even prices, setting prices to break even on

the costs of making and marketing a product; or setting prices to make a target profit.

PROMOTION


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PROMOTION STRATEGY

Objectives:

y To initiate strong awareness about the launch of Hot Ice Teathroughout Generation Y (10-29 years old) consumers as well as their parents.

y To win market shares over our top functional drinks competitor, PepsiCo.The promotional activities will convey the clear message that Hot Ice Tea is a healthy drink for

sporty and young people who simply enjoy taking care of their body and life.

Concepts:

y Think outside the bubble: Be Bold, Be Original, Be Different, Be Yourself.y A good spirit in a good body.y For the out-of-the-ordinary individuals who like to challenge themselves.


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Media selection:

Before choosing the appropriate Medias, it is important to note that Generation Y consumers only

give partial attention to media. However, they can be reached through integrated programs. They

are typically using more than one communication media at a time; a behaviour that is often called

multitasking. This group of consumers doesnt give its full attention to one single message, but

rather uses continuous partial attention to scan the media. Marketers can still communicate with

Generation Y by using a variety of targeted promotional tools. Another important tactic to reach

our target market is through Hot Ice Tea marketing, which PEPSI will heavily use in this

campaign (campus, contests).

Advertising:

Output Examples

Television GEO TV. ARYONE DIGITAL.AAG TV

Radio FM100,FM103,FM106

Magazines TIME MAGAZINE ,akhbar e jahan ,family

Internet Banners on selected websites (gaming, sports, Google, yahoo etc.)

Outdoors Billboards and prints in select areas including:

Campuses, transportation (bus, metro, stations)

Tourist areas in high seasonal periodsPersonal selling Direct contact with retailers, sales kit strategies to be explained later in

the text.

Public relations Stands or special displays and events in schools, malls, sports events

(i.e. IPL SEASON 2), sponsorship activities

Publicity Conferences, press releases (print and online), marketing through TV

coverage

Justifications for advertising selections

-TV:


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Most viewed channel for now a days are geo ,Ary one world and Aag tv and specially etc

and MTV are the most viewed channels by teen age groups.

TV communicates with sight, sound and motion, which is needed for HOT ICE TEA. It is the only

media that can reach 99% of the homes at once. PEPSI has the budget to cover the high costs of

this media.

-Radio:

FM 100 ,FM 103 ,FM 106.2 AND FM 101 are the most popular fm radio stations which

are equally listened by every age group.

Radio is an already segmented medium. There are many radio stations in Pakistan. The average

University or college student is a surprisingly heavy radio listener and spends more time during the

day listening to radio than watching network television we could also use of Interactive radio as

Pepsi has already done in the past.

-Magazines:

We should take advantage of the fact that magazines have become a very specialized

medium. There are many consumers' magazines in Pakistan. Good color production is also an

advantage that creates strong images which is the purpose of PEPSI with its HOT ICE TEA brand.

Each magazines readers often represent a unique profile.

Reaching:

-AKHBAR E JAHAN (is the largest selling Urdu magazine in the world)

-FAMILY MAGAZINE

-DEFENCE JOURNAL

-YOUNG WORLD (weekly magazine for young people)

-HUMSAFAR

-PAKISTAN PUNCH


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-SHE MAGAZINE (for young girls)

(www.allyoucanread.com)

-Internet:

Online advertising is similar to print advertising in that it offers a visual message. It also

has additional advantages; it can also use the audio and video capabilities. As we are targeting our

ads to young outgoing people, sound and movement may attract more attention from viewers and

has the unique feature of being interactive. Interactive media would offer PEPSI the opportunity

to reach younger consumers who have developed a preference for online communication.

-Outdoor:

Billboards in specific geographical area would allow us get a good reach and frequency. It is a low

cost and flexible alternative. (Campus, malls, Bus and metro stations)

Promotional Mix:

y Contests:Win another Hot Ice Tea flavour, Uncover a secret code underneath the bottle cap and win

sporting goods and electronics by logging on the website, Win a trip for the 2009 ICL IN

INDIA. (Arguments: It will increase consumer purchases and encourage consumer involvement

with the product).

y Samples:Distributed in supermarkets, school/universities. Samples are a way to avoid product resistance

since people are not used to find bubbles in their drinks. Arguments: It will encourage new product

purchases and it represents low risk for consumers since they get it for free. They have nothing to

loose by trying it.


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y Point-of-purchase:In supermarkets (to reach the parents of generation Y). Arguments: It is also a mean to increase

product trial and provides a good product visibility.

y Others:

In subsequent years, engage in product placement in TV shows or movies.

Trade oriented:

y Allowances and discounts:

Case allowance (Arguments: The free goods approach will be used so it can encourage retailers

to buy more of the product to get a certain amount for free).


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y Cooperative advertising:

To encourage retailers to buy our product and to maintain our high level of advertisement that

consumers expect from PEPSI.

Other considerations:

y Scheduling of the advertising:

Pulse scheduling (promotional presence year-round, but emphasized and intensified before and

during summer).

IMC (integrated marketing communication) (source beverage digest)

Target Audience:

y Intermediary:Personal selling will be more often used

y Ultimate consumer:PEPSI will use more of mass media because the amount of potential buyers is large.

PLACE

PLACE (DISTRIBUTION STRATEGY)

Hot Ice Tea will be distributed through these channels: supermarkets, convenience stores,

independent food stores, discount stores, multiple grocers, direct sales.

ACTION PLAN


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Step Output Period of time Arguments

1 Personal selling 1st month to 2nd month

To make Pakistani retailers aware ofHot Ice Teaso they

can order it in time

2 Radio spots2nd month to mid of 3rd

month

Radio is the most listened media by students and peoples

on the go

3 Magazines adsMid of 3rd month to 4th

month

The target market will then match an image with the name

of the product more easily. The recognition of Hot Ice

Teawill be faster.

4 Television spotsMid of 3rd month to 4th

month

To send a wide message over Pakistan that Hot Ice Tea

is now available.

5 Point of purchase 5th month to 6th month

Making a special section for the Hot Ice Teain Grocery

store will help the new potential buyers to find our product

faster and more easily.

6 OutdoorsMid of 3rd month to 4th

month

Putting adds in specific places where Generation Y hangs

out will create an increased awareness ofHot Ice Tea

7 Public Relations 6th month to 7th month

We will use special events (sports and others) to promote

Hot Ice Teaand also to get in touch with our potential

market. It will allow PEPSI to interact with our Generation

Y Consumers.

8 Contest 7th month to 8th month

We will use contest to give a second "push" to the sales of

the Hot Ice Tea.

9 Publicity All the timeUse of TV ads and news to make the general public aware

of the existence ofHot Ice Tea.


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MARKETING DEPARTMENT HIRARCHRY CHART

BUDGET

The estimated cost that will incurred while marketing of Hot Ice Tea is about 10 crores or 10

billion rupees for one year.

The details are as follows:

Media Explanation of estimated cost that will incurred for 1 year

T.V Adds on TV with different celebrities for one year will costapprox. 7 crores

NEWS

PAPER

Add in leading news papers will cost approx. 2 million

RADIO For 30 second add for 2 months will cost approx. 380,400

MAGAZINE For 1 month advertising in Akhbar e Jahan will cost approx.200,000

BILLBOARDS

For 3 bill boards on main locations acquiring will cost approx.10.5 million

FREE

SAMPLING TO

RETAILORS

Free sampling to main retailers will cost approx. 300,000

CONTESTS After 6 month of operation if there will be a need to give a 2ndpush to our sales and a contest has to be arranged that willapprox. cost about 5million

CONTROL

MARKETING

DEPARTMENT

DIRECTOR

MARKETING

SALES MANAGER

ADVERTISING

MANAGER

DISTRIBUTION

MANAGER

BRAND

MANAGER

MARKET

RESEARCH

MANAGER


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In the first month of operation Management will over view that whether the Marketing goals

and objectives are going in right direction or not if not than what went wrong and what are

differences between actual and expected performance. This may require changing the action

programs or even changing the goals.

y Operating controlIt involves checking ongoing performance against the annual plan and taking corrective

action when necessary. It will ensure us that the com-any achieves the sales, profits and

other goals set out in annual plan. It also involves determining the profitability of product.

y Strategic ControlIt involves looking at whether the company's basic strategies are well matched to its

opportunities. Marketing strategies and programs can quickly become out-dated and there

will be need of periodically reassess its over all approach to the market-place. A major tool

is marketing audit.

Marketing Audit

There will be a need of monthly marketing audit regarding current activities and sales

volume. It will cover all the marketing areas of business. It will include audit of:

1. Marketing Environment2. Marketing Strategy3. Marketing Organization4. Marketing Systems5. Marketing Mix6. Marketing productivity7. Profitability

Measuring and Managing return on Marketing Investments

After six months of operation we have to measure that whether our investment is being

spent well or not? Are we getting targeted Return onInvestmentor not?

Return on Investment

The net return from a marketing investment divided by the costs of the marketing

investment. It measures the profits generated by investments in marketing activities.

(Source principles of marketing)


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The consumer purchase decision process

Routine problem

solving

Economic Needs

Search for information

Evaluate alternatives and

decide on solution

Purchase product

Post-purchase evaluation

Postpone

decision

Extensive

problem solving

Purchase

situation

Social

influences

Need motivation

Psychological

variables

ice hot tea

Documents