pepsi project 001

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ADissertation Report on

A BRAND POSSITOIONING OF PEPSI CO.

For e partialfulfillment of the degree of

MASTER OF BUSINESS ADMINISTRATION

Under the Guidance of

Mr. Manit Mishra

(Assistant Professor)

Submitted by:

SAMBIT KUMAR

Regd no.. No. 0806229079


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DRIEMS B SCHOOL, TANGI, CUTTACK

ACKNOWLEDGMENT

I acknowledge the indebtedness and gratitude of internal guide mr manitmishra for extending his cooperation and help for successful complication of

the project .

I would also thanks faculty member of DRIEMS B School ,my entire friends

end librarian for their cooperation for the completion the project

Sambit kumar

Regd.No.-0806229079

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DECLARATION

I hereby solemnly declare that the dissertation report entitle BRANDPOSSITIONING OF PEPSICO.. Being submitted by me to the DRIEMS B-School, Tangi, Cuttack .For the practical fulfilment of MBA programme, I am proud to proclaim that I

have completed my study under the guidance of Mr Manit Mishra.This report has neither been submitted to any other institute nor publishedanywhere else.

SAMBIT KUMAR

Regd .no. 0806229079

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CERTIFICATE

This is to clarify that sambit kumar registration no 0806229079 in six trimesterMBA have submitted BRAND POSSTIONING OF PEPSICO. under theguidance of Manit Mishra in the practical fulfilment of requirement for the awardof master in business administration under Biju Pattnaik University ofTechnology.

Mr Manit Mishra

DRIEMS B-SCHOOL

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CONTENTS

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INTRODUCTION

Marketing is typically seen as the task of creating, promotion, and delivering goods and servicesto customer and business. Infact, marketing people are involved in marketing 10 types of entities

goods, services, experiences, events, persons, properties, organization, information, and ideas.

The process of ascertaining consumer needs, converting them into a product or service and then

moving it to the final consumer to satisfy such needs and wants of a specific customer segments

with an emphasis on profitability, ensuring the optimum use of resources available to the

organization.

Todays market is enormously more complex. Domestic markets, one time safe from foreign

invaders, are now happy hunting grounds of giant global corporations. Major striders in

technology have considerably shortened time and distance. New products are launched at an

astonishing pace and are available world wide in a short time. Communication media are

proliferating new distribution channels and formats keep appearing. Competitors everywhere and

hungry.

(Elements of the modern marketing system)

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Marketing Mix is the by-product of the customer oriented marketing approach. After identifying

the market and gathering the basic information about it, the next step in the direction of the

market programming is to decide upon the instruments and the strategy the needs of the customer

and challenges of the rival sellers.

According to W.J.Stanton, Marketing mix is a combination of our elements- product, pricing,

structure, distribution system and promotional activities used to satisfy the needs of an

organizations target, markets and at the same time achieve its marketing objectives. Every

business enterprise has to determine its marketing mix for the satisfaction needs of customers.

Marketing mix represents a building of decisions in 4 areas-Products

Pricing

Promotion

Physical distribution

Marketing mix is the marketing managers instruments for the attainment of marketing goals. It

is composed of 4 ingredients-

1-Product

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Company

Marketers

Competitors

Marketing

IntermediaryEnd users

Suppliers


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2-Price

3-Promotional activities

4-Distribution

The basic purpose of marketing mix is to satisfy the needs and wants of the customers in the

most effective manner. As the needs of the customers and the environmental factors change, the

marketing mix also changes. So ultimately it is the consumer who is to be satisfied.

ABOUT PEPSICO.

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Price

Least price

Discounts

Allowances

Payment period

Credit terms

Product

Variety

Quality design

Brand name

Packaging

Services

Place

Channels

Coverage

Assortments

Locations

Inventory

Promotion

Advertising

Personal selling

Sales Promotion

Public relations

TARGET

CUSTOMERS

Intended

Positioning


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PEPSI-COLA, most commonly called Pepsi, is a soft drink produced by Pepsi-Co, which is sold

world wide in stores, restaurants, vending machines. The brand was trademarked on June 16,

1903, through the drinks was first made on August 16, 1898, by pharmacist Caleb Bradham.

Similar to Coca-Cola, its major rival, Pepsi was originally intended to cure stomach pains.

Pepsi-Cola was first made in New born, North Carolina, in the United States in the early 1890s

by pharmacist Caleb Bradhan. On August 28, 1898, Brads Drink was changed to Pepsi-Cola

and later trademarked on June 16, 1903. PepsiCo was established in 1965 through the merger of

Pepsi Cola and Frito lays. Tropicana was acquired in 1998 and PepsiCo merged with the

quarker oats company including Gatorade in 2001.

PepsiCo is a world leader in convenient foods and beverages, with revenues more than $39billion and over 1, 53,000 employees. The consists of snacks business of Frito-Lay. North

America and the beverage and food businesses of PepsiCo which includes PepsiCo

Beverages, North America and Gatorade.

Many of PepsiCos brand names are over 100 years old, but the corporation is relatively young,

PepsiCo was founded in 1965 through the merger of PepsiCo merged with the Quacker Oats

Company, including Gatorade, in 2001.

PepsiCos success is the result of superior products, high standards of performance, distinct

competitive strategies and the high integrity of our people.

Our mission is to be the worlds premier consumer products company, focused on convenient

foods and beverages. We seek to healthy financial rewards to investors as we provide

opportunities for growth and enrichment to our employees, our business partners and

communities in whom we operate and in everything we do; we strive for honesty, fairness and

integrity.

As Pepsi was initially intended to cure stomach pains, many believe Bradham coined the name

Pepsi from either the condition Dyspepsia (stomachache or indigestion) or the possible one time

use of Pepsin root as an ingredient (often used to cure upset stomach). It was made of carbonated

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water, sugar, vanilla, rare oils and cola nuts. Whether the original recipe included the enzyme

pepsin or not is disputed.

Marketing

In 1975, PepsiCo introduced the Pepsi challenge marketing campaign where PepsiCo site up a

blind testing between Pepsi Cola and rival Coca Cola. During these blind taste tests, the majority

of participants picked Pepsi as the better tasting of the two drinks. PepsiCo took the advantage of

the campaign with television commercials reporting the test results to the public.

In 1996, PepsiCo launched the highly successful Pepsi Stuff marketing strategy, in 2002; the

strategy was cited by Promo Magazine as one of the 16 Ageless Wonders that helped redefine

promotion marketing. (Source-promo Magazine, 200.).

Pepsi has attempted marketing many different flavours of the drink; however, many were quickly

discontinued amidst poor sales. Crystal Pepsi was introduced in 1992 and sold until 9193 as a

rival to New Coke (which was also a failure).Many found the clear drink to be disconcerting;

through it tasted similar to the original. PepsiCo attempted the drink again with the Pepsi Blue in

mid 2002 and later withdrew it from the market in 2004.

Partnerships

PepsiCo has also formed partnerships with several brands it doesnt own. In order to distribute

these or market them with its own brands.

Elma Chips, leader of the Brazilian chips market

Frappuccino

Strabucks Double Shot

Starbucks Iced Coffee Mandarin (license)

D & G (license)

Lipton Brisk

Lipton Original Iced Tea

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Lipton Iced Tea

Ben & Jerrys Milkshakes

Dole Juices (license)

Sunny Digital (produced by PepsiCo for Procter & Gamble)

PepsiCo. in India

A woman walking up on a sidewalk in bijapur, India under a Pepsi advertisement.

PepsiCo gained entry to India in 1988 by creating a joint venture with the Punjab government

owned Punjab Agro-Industrial Corporation (PAIC) and Voltas India Limited.

This joint Venture marketed and sold Lehar Pepsi until 1991 when the use of foreign brands was

allowed. PepsiCo brought out its partners and ended the joint venture in 1994. Others claim that

firstly Pepsi was branded from import in India in 1970 for having refused the list of its

ingredients and in 1993, the ban was lifted with Pepsi arriving in the market shortly afterwards.

These controversies are a remainder of Indias sometimes acrimonious relationship with huge

multinational companies. Indeed, some argue that PepsiCo and the Coca-Cola Company have

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been major targets in part because they are well known foreign companies that draw plenty of

attention.

In 2003, the Center for Science and Environment (CSE), a non-governmental organization in

New Delhi, said aerated waters produced by soft drinks manufacturers in India, including

multinational giants like PepsiCo and Coca Cola, contain toxins including lindane, DDT,

Malathion and chlorpyrifos-Pesticides that can contribute to cancer, tested products including

Coke, Pepsi, 7up, Mirinda, Fanta, Thums up, Limka, Sprite, Slice, Mountain dew, Twister. CSE

found that the Indian produce Pepsi soft drinks had 36times the pesticide residues permitted

under European Union regulations, Coca Colas 30times. CSE said it had tested the same

products in the US and found no such residues. However, this was the European standard for

water not for other drinks. No law bans the presence of pesticides in drinks in India.

The Coca Cola Company and the PepsiCo angrily denied allegations that their products

manufactured in India contained toxin levels far above the norms permitted in the developed

world. But an Indian parliamentary committee, in 2004, backed up CSEs findings and a

government appointed committee is now trying to develop the worlds first pesticides standards

for soft drinks. Coke and PepsiCo opposed the move, arguing that lab tests arent reliable.

Rivalry with Coca Cola

While some people claim that Pepsi tastes exactly the same as Coca Cola, others say

they can tell a difference in the two sodas. In the past, the difference in taste between Pepsi and

Coca Cola was even greater than it is today.

In 1985, the Coca Cola Company, aimed much publicity, changed the formula. Some authorities

believe that New Coke, as the reformulated drink came to be known as, was invented specifically

to respond to Pepsi. Numerous blind taste tests were suggested that more consumers preferred

the taste of Pepsi (which is believed to have more lemon oil, uses vanillion rather than vanilla) to

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Coke. In state tests, drinkers were more likely to respond positively to sweeter drinks, and Pepsi

had this advantage over Coca Cola.

Coca Cola outsells Pepsi in the US overall because V is sold exclusively in more locations, such

as restaurants that sell Coca Cola, but not Pepsi. In locations where Pepsi and Coca Cola are sold

side by side, Pepsi outsells Coca Cola. Coca Cola still outsells Pepsi in almost all areas of the

world. Saudi Arabia and Canadian provinces of Prince Edward Island, Newfoundland and

Labrador, Ontario and Quebec are some of the few exceptions.

BRAND POSITIONING

The distinctive position that a brand adopts in it competitive environment to ensure that

individuals in its target market can tell the brand apart from others. Positioning involves the

careful manipulation of every element of the marketing mix.

Brand Positioning in the peoples Minds

The importance of an image has become an emotional part of every

one. A brand name represents the image, character and personality of a brand. A brand name

should be clear, lucid. Easy to remember, distinct from the competition and should not be generic

to the category. It should become customers Top of the mind brand (TOMB). Most successful

brand names would satisfy these criterions to quite an extent. Brand loyalty is one thing which

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has made the branding more popular. As some one rightly said Brand loyalty is not dead, its

just more like loyalty to a girl/boyfriend than loyalty to a husband/wife.

Some brand names such as Coca-Cola by itself does not represent anything until it is positioned

with the proper communication and image that represents what it stands for. On the other hand, a

brand name like McDonalds represents western origins while a brand name like Honda

represents Japanese efficiency, culture and personality. Hence, brand names that are linked to

associations of their origins or product will create first impression to the user. On the other hand,

brands like Pepsi on its own may not mean anything until the image and character of the brand is

communicated to the market.

Brand positioning is all about identifying the optimal location in our costumers minds for

our Brand and our competitors proper positioning makes it easier to facilitate

understanding of our Brand.

Product positioning is an important strategy for achieving differential advantages. Positioning

reflects the place a product occupies in a market or segment. A successful position has

characteristics that are both differentiating and important to consumers

Every product has some sort of position-whether intended or not, position based upon consumer

perceptions, which may or may not reflect reality. A position is effectively built by

communicating a consistent message to consumers about the product and where it fits into the

market-through advertising, brand name and servicing.

Positioning is inextricably linked with market segmentation. You cant define a good poison until

you have divided the market into unique segments and selected your target segments. Three key

research issues must be addressed:

What is your current position?

What position do you want to have?

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How do you create a new positioning?

The right positioning based on strategy, product, price, market segmentation and promotion is the

prime ingredient for all effective marketing plans. To reach the goal of strategic positioning, that

is to differentiate the companys offer positively from its competitors; its platform has to be clear

and comprehensible. Further more, the positioning statement has to be transformed consistently

in the communications. Since all marketing communications are founded on the positioning, an

inadequate targeting can inflict damage to a brand and result unforeseen expenses.

Brands are a companys most significant asset. Companies with stronger brands earn higher

returns due to the higher market expectations and increased buyer confidence. To create value,

brands must built on existing corporate assets and then be envisioned with a strong personality

that in corporate distinctive customers-focused benefits-rationed, as well as emotional.

For effective returns, branding must be an integral objective in the agenda of any corporate

strategy, and consistently deliver and expand on its promise at all employee and costumer

platforms. To increase brand equity, the strategic vision must also ensure that the measurable

dimensions of brand value are consistent and on target regarding promise, awareness, perceived

quality and utilized brand loyalty amongst employees and costumers.

That is why a strategic and thoroughly implemented branding program is a crucial element of

every corporate strategy, from the simplest to the most global and complex.

Brand Equity The sum of all distinguishing qualities of a brand, drawn from all relevant

stakeholders, that result in personal commitment to and demand for the brand; these

differentiating thoughts and feelings make the brand valued and valuable.

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Brand Equity Protection Is the implementation of strategies to reduce risk and liability from the

effects attributable to counterfeiting, diversion, tampering and theft so that the differentiating

thoughts and feelings about the brand are maintained and remain valued and valuable.

Brand image The customers net out-take from the brand. For users this is based on practical

experience of the product or service concerned (informed impressions) and how well this meets

expectations; for non-users it is based almost entirely upon uninformed impressions, attitudes

and beliefs.

Brand positioninghelps marketing and advertising professionals differentiate their product and

give it a distinct advantage in an overcrowded global market. It explores the concepts and

principles involved in developing sound positioning strategy and discuss practical application, as

well as how to:

Secure competitive advantage

Use celebrity endorsements to market products

Establish brand positioning on the internet

And much more!

COLA WARS: PEPSI VERSUS COCACOLA

1) What attributes and benefits do soft drinks offer?

Which are physical and which are psychological?

Which are essential and which are consumers willing to be flexible on?

2) Why did people react so strongly when New Coke was introduced?

3) Comment on the design of the New Coke. What would you have changed?

OFFERS BY PEPSI CO

To whom will we offer it?

What price will we change?

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How will we let them know about our offers?

How/where will we engage in exchange with them?

Whom will we compete with?

HOW TO KNOW WHAT CUSTOMERS WANT

Ask direct questions about preference:

What brand do you prefer?

What interest rate would you like?

What annual fee would you like?

What credit limit would you like?

SUGGESTIONS

To improve the distribution system,

Dealers network should be scanned on the basis of area coverage to motivate and

fulfill the demand of each outlet.

Distribution should be in a proper interval of time, so that there is no shortage of

products in the market.

Retailers are not getting the package through sales man Company should

supervise whether the benefit goes to the target retailers.

Brand is not affected but service and direct selling abilities of sales forces are the key

weapons to enhance sales.

Refilling of a stock should be effectively made by supplying products in the right timeand right mode of transportation.

The logistics department should have their planning in accordance with the requirement

to ensure the transportation of adequate target fixed for each area by the quantities to the

right outlet at the right time.

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Time to time salesman should be trained with innovative skills for better performance,

having sole aim of customer satisfaction.

Efforts should be made to break CCX monopoly to mix and promote mix counters to

PEPSI monopoly.

As the customers believe in product quality, sellers of the company should be develop

perception in their mind of the customers by various advertisings.

Distributor should inform to all retailers about the various schemes, which introduced by

the Company.

Schemes should reach the retailers more often and in time.CEs should meet the

grievances of retailers from time to time.

Outdoor media like hoardings, signs, posters and kiosks should be promoted at the

outlets.

Cooling equipment should be provided to manage the inventory in desired condition and

state.

Offer and facilities should be distributed in such a way that it reaches the customers

rather than getting limited within the retailers and distributors.

Radio jingles should be made ready by mixing prominent Oriya music to attract the

masses.

Various quiz and game shows should be organized at club house, educational institution

and shopping malls for attracting crowed.

Arrangement of Pepsi night in the city by bringing prominent celebrities for a huge crowd

to spread the popularity of the brand and the taste.

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CONCLUSION

The aim of our project was to learn and observe the brand positioning of PEPSI CO.

We selected this organization because we were interested in the success story of the company

and about the main bases of difference between the two main soft drink brand of the country;

i.e.-PEPSI & COCACOLA.

Our observation was that the demand of Thums Up is more than other products. After going

through all the market research and survey, it was found that market share of PEPSI is higher

than the COCACOLA.

PCL should take immediate steps to improve the standard of the sales and services. Public

relation should be enhanced to be closer to the stake holders. Support for advertisement should

be recorded by the organization to be closer to the consumers and also the taste of the product

should be taken care of.

While there is a comparatively less market share of PCL in the city, the position of the brand is

much good outside the state where there is more demand of Pepsi and its products that coke. The

market share of Pepsi is much more than that of Coca Cola in overall.

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BIBLIOGRAPHY

Philips Kotler Principle of Marketing

Gary Armstrong Eleventh Edition.

V.S.P. Rao Strategic Management,

V.Hari Krishna Text and Cases.

V.S. Ramaswamy Marketing Management,

S.Namakumari Planning and implementation.

A.Dam Rajender The Real Pepsi,

The Real Story

Journals & Magazines.

Website www. Pepsi.com

www.pepsiindiaholding.com

www.google.com

www.wikepedia.org

www.pepsizone.com

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http://www.pepsiindiaholding.com/http://www.google.com/http://www.wikepedia.org/http://www.pepsizone.com/http://www.pepsiindiaholding.com/http://www.google.com/http://www.wikepedia.org/http://www.pepsizone.com/


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