pepsi co. marketing project

7/28/2019 Pepsi Co. Marketing Project

1/17

1

Principleof Marketing

Project Report on Pepsi

MBA 2nd

Semester (E-9)

Group Members

Wajid Ali 3335

Amina Yawer 33**

Haris Riaz 3382

Submitted To: Mr. Usman M Ghauri

Submitted By: MarketRevolutioners


2/17

2

ACKNOWLEDGEMENT

We are very thankful to ALLAH ALMIGHTYwho has given us the power and ability to think

and judge the matters and then to make us of the blessed abilities. Our most respectable teacher

Sir Usman M Ghauriis the only source who directed us to apply our abilities in the required

direction. Thanks to our parents and friends for their encouragement and support.

THIS PROJECT IS DEDICATED TO ALL BUSINESS

STUDENTSWe will like to dedicate this project to all business students who are struggling to become

business professionals and plan to achieve the dreams of their parents. We hope that they would

extract useful content out of this project and today we feel honored to be able to help someone.

May ALLAH help all of us!


3/17

3

Brief History:

Pepsi is a carbonated soft drink producedand manufactured by PepsiCo. The drinkwas first made in the 1890sby phar maci st Caleb Davis BradhaminNew Bern , North Carol ina. Th e brand wastrademarked on June 16, 1903. Therehave been many Pepsi Variants producedover the years.

Introduction to PepsiCo

PepsiCo serves 200 countries and is a world leader in providing food and beverage products. Its

brands consist of Frito-Lay North America, PepsiCo Beverages North America, PepsiCo

International and Quaker Foods North America. Some of PepsiCo's brands are over 100 years

old, however the company was only founded in 1965 when Pepsi-Cola merged with Frito-Lay.

PepsiCo then attained Tropicana and Gatorade when they merged with the Quaker Oats

Company. The combined retail sales average about $92 billion. The company is focused on

being the premier producer in supplying the world with convenient foods. They offer a wide

variety a food options as well, including healthy options. PepsiCo stands out as a company

because of its sustainable advantage. It includes widely known brands, innovative products, and

powerful market skills. The company also tries to benefit the community.
http://en.wikipedia.org/w/index.php?title=Caleb_Davis_Bradham&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Caleb_Davis_Bradham&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Caleb_Davis_Bradham&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Caleb_Davis_Bradham&action=edit&redlink=1


4/17

4

PEPSI IN PAKISTANIn Pakistan the beverage industry is not as competitive as compared to the beverage industry of

the developed countries. In Pakistan Pepsi and Coca-Cola are the two major shareholders of the

beverage industry. To make these soft drinks highly competitive the companies use latest

technology to create year round availability and ever-lasting impression on the minds of the

consumers. The two companies, especially, in the soft drink industry use the latest equipment in

order to maintain their quality standards and make their customers satisfied.

Companies operating in the soft drink industry need to keep in mind the technology, the

competition, the changing demand and supply conditions, and the rules and regulations laid

down by the government. Keeping in mind these factors, Pepsi introduced a new technique of

making the soft drink using the Post Mix Machine. The machine is also called Fountain Pepsi

because the Pepsi produced by this method is very chilled and refreshing.

Mission and Vision

At PepsiCo, we believe being a responsible corporate citizen is not onlythe right thing to do, but the right thing to do for our business.

VISION:

"PepsiCo's responsibility is to continually improve all aspects of the world in

which we operate - environment, social, economic - creating a better tomorrow

than today."

Our vision is put into action through programs and a focus on environmental

stewardship, activities to benefit society, and a commitment to build shareholder

value by making PepsiCo a truly sustainable company.


5/17

5

MISSION STATEMENT:

Our mission is to be the world's premier consumer Products Company

focused on convenient foods and beverages. We seek to produce financial

rewards to investors as we provide opportunities for growth and enrichmentto our employees, our business partners and the communities in which we

operate. And in everything we do, we strive for honesty, fairness and

integrity.

Performance with Purpose:

At PepsiCo, we're committed to achieving business and financial success while

leaving a positive imprint on society - delivering what we call Performance with

Purpose. Our approach to superior financial performance is straightforward - drive

shareholder value. By addressing social and environmental issues, we also deliver

on our purpose agenda, which consists of human, environmental, and talent

sustainability.


6/17

6

Pepsis Marketing mix

Product

The main product of Pepsi Cola Company is Pepsi and its sub brands are Dew,Miranda, 7up, Pepsi Max. It also diversified into Lays.Providing their consumers with easy-to-use, convenient and innovative containersare one of their top priorities. Package introductions they have made over the yearsinclude the industry's first 1 liter bottle; Regular, Disposable; Can. Pepsi Co. wasthe first company to respond to consumer preference with lightweight, recyclable,

plastic bottles. These bottles are made of polyethylene terephthalate or "PETplastic," which is a form of polyester used to make strong, lightweight, shatter-resistant bottles.


7/17

7

Pepsi Products:

Pepsi (cola drink)

7UP (cola drink)

Miranda (soft drinks)

Dew (cola drink)

Slice (soft drinks)

Aquafina (Mineral Water)

Examples of its variety of products


8/17

8

PricePepsi prices its products similar to those of Coca-Cola in order to keep profits high.Competition is based mainly on marketingskill rather than price to help avoid costly

price wars and keep profits stable. Sinceneither of the major manufacturers wouldwin a price war, it is unwritten rule that thecompanies will follow the pricing structureof the market leader. While this amount to

price fixing, there has not been any majorgovernment actions to curtail the practice soit should continue in the future.PepsiCos current retail prices range

depending on the convenience of thelocation in which they are located anddepending on the size of the soft drink container.PRICES OF DIFFERENT BOTTLES

Size and Price of Pepsi (RS.)Regular bottle 15

Non returnable or disposable bottle 30

1 liter bottle (glass) 40

1.5 liter bottle 70

2.25 liter bottle 90

Pepsi can 50


9/17

9

Place (Distribution)

Manufacture -------------- Wholesaler---------------Retailer

Manufacturer -------- Company Warehouse-------------- Retailer

Distribution is an important aspect of success in the beverage industry. Since thecola companies want to focus on making syrup and marketing, they need to havestrong, loyal bottlers. This is especially the case in foreign markets where the colacompanies fiercely battle for good bottlers.The building of bottlers through joint ventures and the increased maintenance ofcurrent bottler relationship should be the main focus of Pepsis international

marketing. Coca-Cola is very methodical in making sure that its bottlers are happy,while Pepsi has been known for neglecting its bottlers. This is one area that Pepsimust improve if it is going to take market share away from Coca-Cola.Product is distributed through PepsiCo distribution centers. The distributor deliversit

To the grocery retailers, vending companies, restaurants, and warehouse/clubstores.

The distribution segments can be broken down into the following:

Convenience Stores and Gas Stations: 12% of the market Restaurants: 25%of the market Warehouse/Club Stores: 6%of the market Super Markets and Retail Stores: 57%of the market.


10/17

10

Distribution Structure of Pepsi


11/17

11

Promotion Strategy

Pepsi promotes its products in a many ways, but focuses mainly on gettingproducts associated with entertainment icons that appeal to youth. The first

major use of this technique was the signing of Pakistan cricket teamascelebrities.Two other areas of entertainment that have been used by Pepsi to promote its

brands are sports and movies. Sports are a popular source of entertainmentthroughout the world and is a using it to promote the brand is a main focus ofPepsi. Since sporting events are seen many times by fans, it provides a goodopportunity to increase brand recognition. Movie starsare also popular throughoutthe world and are greatly admired by people, so using them in advertising has a

positive effect brand image.Some of the ways in which Pepsi attract consumers are:

Free Samples ( New productDEW) Discounts ( RAMDAN Offers) In-Store DisplaysSigns, banners etc. EntertainmentGames with free T-shirts, Pepsi points under the cap etc.


12/17

12

Methods of Promotion


13/17

13

Market Segmentation

As we know that PepsiCo provides varieties of beverages such as carbonated softdrinks, sport drinks, dairy-based drinks, energy drinks, fruit flavored beverages,

ready-to-drink coffees, ready-to-drink tea, mineral water and frozen beverage.These products are marketed under brand as Pepsi, Mountain Dew, Gatorade,Lipton, Starbucks, Tropicana, and so on. With these products, PepsiCo aims toattract different groups of consumers. There are two levels in which Pepsisegments its market:

1. Demographic2. Niche marketing

Concentrated Marketing:

Despite the large customer base in the Soft Drink industry, Pepsi prefers tosegment itself as the beverage choice of the New Generation,Generation Next,or just as the Pepsi Generation. These terms adopted in Pepsis advertisingcampaigns are what marketers refer to as Generation X, which are profiled to be

between the ages of 18 to 29. In addition, Pepsi shifted its focus to the growingAmerican teenage market in the 1990s by forming exclusive contracts withAmerican schools and developing advertising campaigns such as The NextGenerationand the Joy of Pepsi, featuring Britney Spears. Pepsi believes thatif they can get this market to adopt their product, they could establish a loyal

customer in a long run.


14/17

14

1.Niche Marketing:Pepsi focused on varietal differentiation since 1990 by introducing a string of niche

products. To increase volume in order to counter flat coca sales, Pepsi introducedSierra Mist in 2002-2003to take the place of 7-up and go head-to-head with Sprite.Pepsi has also tried to boost volume by introducing products that appeal to specifictarget markets that it currently is not reaching. Pepsi has introduced Code Red andLive Wire, extensions of Mountain Dew, Pepsi One, and Pepsi Blue. Finally, Pepsiis countering declining sales of carbonated drinks through the marketing anddistribution of Starbucks ready to drink products, and the acquisition of SOBE andGatorade. The success of Pepsis Mountain Dew Code Red launched in 2001 was

the most successful soft drink innovation in 20 years and has spurred even moreniche product introductions for PepsiCo as well as other competitors.


15/17

15

2.Demographic:In focusing on the Pepsi-Cola beverage product, PepsiCo has retained a long

history of concentrating on youth as its main target marketGeneration Next! Ithas spent billions of dollars in trying to woo the young and nearly young, implyingthat Coca-Cola is for the older generation. The reason why Pepsi-Cola has fiercelytargeted this market is because it is the largest amongst its users. Market segment

profiles have shown that the majority of carbonated beverage drinkers are youthand middle age people. Also, Pepsi continually targets the college market in whichthey spend huge amounts of money to compete with Coca Cola in acquiringcontracts with universities (i.e.: CSUF) to have sold representation of their productdistribution. Pepsis use this behaviorist segmentation has been a key to thecompanys success.


16/17


17/17

17

3.Market Targeting:Pepsi customers are mostly Teenagers and Young Adults between the ages of 14 to30. It also targets at Schools, Colleges, Universities, Homes, Restaurants, Hotels,and Stores.

4.Market Positioning:PepsiCo plans to further create positions that will give products the greatestadvantage in their target markets. Pepsi has been positioned based on the processof positioning by direct comparison and have positioned their products to benefittheir target market.

pepsi co. marketing project

Documents