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North South University School of Business Prepared For Mkt 465 Prepared by Niaz

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Page 1: Re branding of pepsi

North South UniversitySchool of Business

Prepared For

Mkt 465

Prepared by

Niaz

Page 2: Re branding of pepsi

Table of Content

01Company Overview 06

Historical Background 07

02 PRODUCT INFORMATION 10

03 Internal Situation Analysis 14

04 External Situation AnalysisDemographicMarket SegmentationMarget PositioningTarget MarketCompetitorsMarketing Mix

18

05 SWOT Analysis 26

06 Developing Imc 27

Communication Objective 27

Budget

27Marketing Media 31

Sample Logo 34

Sample Advertisement 34

Evaluation & Monitoring 35

07 Conclusion 36

08 Reference 37

Page 3: Re branding of pepsi

Rebranding Pepsi as Pepsi Max in Bangladesh

Page 4: Re branding of pepsi

Letter of Transmittal

December 17, 2010

ToSammy Ahmed,Lecturer, North South UniversityBashundhara, Residential Area, Dhaka.

Dear Sir,

Subject: Submission of project paper

Page 5: Re branding of pepsi

Here is the project paper titled: “REBRANDING PEPSI AS PEPSI MAX in

BANGLADESH” as a part of our course MKT 465. We like to thank you to assign us

this project paper through which we got an opportunity to get idea how to rebrand a

product in a country & how to advertise it.

We hereby like to request you to accept our paper.

Sincerely,

Saimum Imtiaz

ID: 072421030

Sec:

Acknowledgement

First of all, we reward to almighty Allah, who has provided us the brilliant

opportunity to build and complete this term paper successfully.

We would like to express our feelings and great affection with our heartiest

appreciation to the most respectable and honorable course instructor Mr. Sammy

Ahmed for his kind co-operation.

We would like to thank our senior brothers and friends who have helped us by

giving valuable advices and experience.

Page 6: Re branding of pepsi

We would also like to thank to lab administrator for providing guideline and information.

Last of all, we would like to thank the honorable authors of the book

“Advertising, Principal and Practice” William Wells, Sandra Moriarty, and John

Burnett because we have taken a lot of information from their book and also thank

to Pepsi Co. Bangladesh to provide us important information.

Page 7: Re branding of pepsi

Executive SummaryThis executive summary relates to project of a Rebranding new product. We decide to

Rebrand Pepsi Max in Bangladeshi market. Pepsi Max is a product of PepsiCo. Pepsi

Max (known as Diet Pepsi Max until early 2009), is a zero-calorie, sugar-free,

carbohydrate-free, ginseng-infused cola. It has nearly twice the caffeine of Pepsi's other

cola beverages. Here we try to find out and analyze the proper way to launch a new

product to the consumers.

We have started this project with a background of PepsiCo. We talk about the history of

PepsiCo, their mission and operations. We also included a company profile here.

Then we come out with a background of our product Pepsi Max.Then we discuss about

the functions of Pepsi Max. We also find out our product substitutes.

Next we try to analyze the internal situations. This part includes PepsiCo’s product line

and its production capability. PepsiCo uses BBDO ad agency for all their advertisement.

BBDO is a renowned ad agency, located in gulshan. Here we discuss about advantage

and disadvantage of maintaining the program using agency.

Later we do the external situation analysis. Here we talk about the demographics

influencing, factors which influence consumers, market segment and competitors of Pepsi

Max. Then we do the SWOT analysis of Pepsi Max.

In the last past part of our project we develop the IMC for Pepsi Max. First we find out

the communication objective of Pepsi Max. Then we talk about media mix of our

product. Then we make the total budget of our advertisement and other way to promote

our product. And lastly we make an evaluation of overall IMC.

We have given our best effort to make this project perfect. But it was really difficult to

find out all the information due to our limitations. We can’t deny that everything we have

analyzed won’t work properly.

We will use celebrities in our promotional campaign or commercial ads. Young guys are

always like to follow their role models. We will use local celebrities for our commercial

ads and campaign. We see that Pepsi is already using our local celebrities like Shakib Al

hasan and Ashraful. Before that they used some rock stars for their commercial ads. So

we will follow this trend. Then the people, especially young generation will be attracted

by our Pepsi Max more.

Page 8: Re branding of pepsi

1. Background of the Company:

Company Profile

PepsiCo, Inc. is one of the world's top consumer product companies with many of the

world's most important and valuable trademarks. The drink is the invention of Caleb

Bradham (left), a pharmacist and drugstore owner in New Bern, North Carolina.

Pepsi-Cola Company division is one of the largest soft drink businesses in the world,

with a 21 percent share of the carbonated soft drink market worldwide. PepsiCo's product

portfolio includes 16 brands that generate more than $500 million in sales each year.

Overall, People in more than 195 countries enjoy Pepsi. About 685 million servings are

consumed almost all over the world everyday. Pepsi was first bottled in1903.

One of the Pepsi’s renowned product is Pepsi MAX (known as Diet Pepsi Max).Pepsi

max is a sugar less carbonated drinks which has maximum taste and zero calorie. Diet

Pepsi Max was introduced in the United States on June 1, 2007 and in Canada in March,

2008. "Diet" was dropped from the name in early 2009.

Company History

PepsiCo, Inc. is one of the world's top consumer product companies with many of the

world's most important and valuable trademarks. People in more than 195 countries enjoy

Pepsi. About 685 million servings are consumed almost all over the world everyday. Its

Pepsi-Cola Company division is the second largest soft drink business in the world, with

a 21 percent share of the carbonated soft drink market worldwide and 29 percent in the

United States. Three of its brands--Pepsi-Cola, Mountain Dew, and Diet Pepsi(Pepsi

Max) among the top ten soft drinks in the U.S. market.In the United States, PepsiCo, Inc.

was also a mammoth multinational supplier of juices, and snack food. Its advance to that

level was almost entirely the result of its management style and the phenomenal success

of its television advertising.

Page 9: Re branding of pepsi

Mission

PepsiCo’s mission is to be the world's premier consumer products. The company focused

on providing convenient foods and beverages all the time. It seeks to produce financial

rewards to investors as it provides opportunities for growth and enrichment to its

employees, its business partners and the communities in which the company operates. In

everything PepsiCo does, it also strives for honesty, fairness and integrity. The

company’s mission statement is "We have absolute clarity about what we do ‘WE SELL

HIGH QUALITY FOOD AND BEVERAGE PRODUCTS.’ Our success will ensure:

customers will build their business, employees build their futures, and shareholders build

their wealth."

Operations

PepsiCo began its international snack food operations in 1966. Today, with operations in

more than 40 countries, it is the leading multinational snack chip company, accounting

for more than one quarter of international retail snack chip sales. Products are available in

some 120 countries. Frito-Lay North America includes Canada and the United States.

Major Frito-Lay International markets include Australia, Brazil, Mexico, the Netherlands,

South Africa, the United Kingdom and Spain. Outside the United States, PepsiCo’s

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

Cola beverages are available in about 160 countries and territories.

Pepsi-Cola began selling its products internationally in 1934 with its operations in

Canada. Operations grew rapidly beginning in the 1950s. In addition to brands marketed

in the United States, major products include Miranda and Pepsi Max. Pepsi-Cola

provides advertising, marketing, sales and promotional support to Pepsi-Cola bottlers and

food service customers. This includes some of the world's best-loved and most-

recognized advertising. New advertising and exciting promotions keep Pepsi-Cola brands

young. The company manufactures and sells soft drink concentrate to Pepsi-Cola bottlers.

The company also provides fountain beverage products.

Page 10: Re branding of pepsi

In 1957 the name of the company was changed to Tropicana Products, headquartered in

Bradenton, Florida. The company went public in 1957, was purchased by Beatrice Foods

Co. in 1978, acquired by Kohlberg Kravis & Roberts in 1986 and sold to The Seagram

Company Ltd. in 1988. Seagram purchased the Dole global juice business in 1995.

PepsiCo acquired Tropicana, including the Dole juice business, in August 1998.

BACKGROUND OF THE PRODUCT-PEPSI MAX

Description of Pepsi Max

One of the Pepsi’s renowned flavor is Pepsi Max (known as

Diet Pepsi Max).Pepsi max is a sugar less. Carbonated

drinks which have maximum taste and zero calorie. It is a

zero-calorie, sugar-free, carbohydrate-free, ginseng-infused

cola, marketed by PepsiCo. It has nearly twice the caffeine

of Pepsi's other cola beverages. Pepsi Max also has two

great flavor extensions – Max Twist-the subtle taste of real

lime juice, and Max Cino, blended a unique cappuccino hit

with every sip. Pepsi Max's current slogan is "Your World

Gone Max". Diet Pepsi Max was introduced in the United States on June 1, 2007 and in

Canada in March, 2008. Pepsi Max debuted in the United Kingdom and Italy in April

1993. The rollout was expanded to Ireland the following September, and to France, the

Netherlands and Australia the following December. By the end of 1994, Pepsi Max was

sold in approximately twenty countries. By the end of 1995, that figure had more than

doubled.” Diet" was dropped from the name in early 2009.

In Bangladesh, only PEPSI COLA is available. No diet cola of Pepsi is existing here

recently. Launching of PEPSI MAX in Bangladesh will be a good marketing decision

where people are getting health conscious day by day.

Page 11: Re branding of pepsi

Product Composition Dimensions

PRODUCT BREADTH PRODUCT DEPTH

Pepsi Max PET bottle: 1000ml, 1.5L

Can: 350 ml

Product Characteristics

Consumer Involvement (time and effort) Quite low

Need for satisfaction

Price and quality comparison

Usually immediately (sometimes per-

plan purchased) Absent, since all

Transcom products are uniformly priced

and quality is centrally controlled.

Price Moderate (compared to other drinks like

fruit juices)

Frequency Normally frequent (consumers buy it

according to their desire)

Length of Channel Quite long (products are not directly

supplied to consumers any more, rather

they are supplied through middlemen)

Function of Pepsi Max

Page 12: Re branding of pepsi

Nutrition Info

PER SERVING8 fl oz %DV

Calories 0 -Total Fat (g) 0 0Sodium (mg) 25 1Total Crabs (g)

0 0

Sugars (g) 0 -Protein (g) - -

Not a significant source of other nutrients.*Percent Daily Values (DV) are based on a 2,000 calorie diet.

PER SERVING

Typical values per 100ml

Energy (kcal) 0.3

Energy (kJ) 1.3

Protein 0.1

Carbohydrate 0

of which sugars 0

Fat 0

of which saturates 0

Fiber 0

Sodium trace

Page 13: Re branding of pepsi

8 fl ozCaffeine (mg) 46

Potassium (mg) 25Phosphorous (mg) 36Acesulfame Potassium (mg) 21Aspartame (mg) 82Sucralose (mg) 0

Highest percentage of Aspartame that is 82 %. It is a kind of saccharine. It is a

substitute of sugar but it doesn’t contain excess amount of calorie like sugar

which is harmful for diabetic, hig blood pressure patient. So, it is useful to

maintain a healthy life.

It has also a significant percentage of Caffeine that is 46% which is 5/10 times

higher than the energy drinks existing in Bangladesh. Caffeine raises the energy

and stamina to work. Thus PEPSI MAX competes with the energy drinks as well.

Substitutes

Page 14: Re branding of pepsi

There are few companies in Bangladesh in beverage industry. The soft drinks market in

Bangladesh consists mainly of seven companies:

1. Abdul Monem Limited (Coca-Cola, Sprite, Fanta)

2. Agriculture Marketing Company Limited (Pran)

3. Akij Group (Mojo, Lemu, Frutika)

4. Global Beverage Limited (Virgin)

5. Globe Soft Drinks Limited (Uro Cola, Uro Lemon)

6. Partex Beverage Limited (RC Cola, Lychena)

7. Transcom Beverage (Pepsi, 7up, Mirinda)

Pressure from substitute products

The existence of close substitute products increases the propensity of customers to switch

to alternatives in response to price increases (high elasticity of demand). However, we

identified closest substitute of “Pepsi Max” is the energy drinks in market like Shark,

Black horse, Tiger etc.Compared with other common energy drinks, Pepsi Max gives the

consumer a relatively low dose of caffeine. However, other substitutes can be Sprite,

Fanta, 7up & Mirinda etc.

Factors affecting the pressure from substitute

products

Perceived level of product differentiation

Buyer propensity to substitute

Buyer knowledgeably of the substitutes

Eye Catchy TVC of substitutes

Reutilized product consumption

Buyer switching cost

Page 15: Re branding of pepsi

Internal Situation Analysis

Firm’s product line: Firm’s product line is given below in a

form of a chart.

Pepsi ice cucumber main soft drink

Pepsi regular pepsi raw

Pepsi diet mountain dew

Pepsi max Pepsi products

Some pictures of Pepsi products

Page 16: Re branding of pepsi
Page 17: Re branding of pepsi

Chart : Product Line of PEPSICO.

Page 18: Re branding of pepsi

Past Success and Failure

SUCCESS

PepsiCo has a very successful company. It has lots of past successes. This company

didn’t arrive on the scene until 1898, which makes it a “newcomer,” but the company has

prospered for 111 years and has survived a recession. Pepsi run by astute management

teams that perpetuate the great successes of the past and innovate and expand to ensure

that their companies will be around for many more years. PepsiCo (PEP), incorporated in

1919, is a global leader in the soft drink and snack food industries.  PepsiCo’s popular

brands include Pepsi, Frito-Lay, Gatorade, and Quaker Foods (acquired in 2001). PEP

derives 65% of total sales from North America, while 35% comes from the rest of the

world.  The company is beating its competition by expanding in international markets and

focusing on health and wellness beverages and foods.

Pepsi management has created faster growth by reacting more quickly to new growth

trends in the industry.  Bottled water (Aquafina), fruit juices (Tropicana and Naked

Juice), and nutritious snacks (Quaker oatmeal and granola bars) are growing noticeably

faster than traditional carbonated soft drinks and conventional snack foods.

Failure

Pepsi Company has some past brand failures. For instance, in 1992, after months of tests

and experiments the company produced a new and clear formula and decided to call it

Crystal Pepsi. It was a clear cola. They also produced a diet version – Diet Crystal Pepsi.

The company thought that people will like it because of its new taste. But the product’s

taste was not good and nobody liked that. Another failure of the company was lounging

the brand named Blue Pepsi. In 1994 company produced it but the deep blue color and

the taste of that product was not accepted to the consumers.

For those reason after some periods, Pepsi Company halted the production of those

products.

Page 19: Re branding of pepsi

External Situation Analysis

1. Demographic

Under this segmentation come social and economic factors that influence the buying

behavior of the customers. It is the statistical representation of the social and

economic characteristics of people like age, sex, income, occupation etc. now if we

look at the factors that included in the demography we will find our target customers

in those sub segmentations. Like

Age: here from age 12 to 50 is our main target audience. The exclusive

target age group is age 10 to 25, the student segment.

Sex: Our target customers include both male and female.

Occupation: Mainly the students and fresh employees just entered

into their job.

Income: Minimum monthly income range is Tk 5,000.

2. Buying patterns of customers

There are two types of buyer power. The first is related to the customer’s price

sensitivity. If each brand of a product is similar to all the others, then the buyer will base

the purchase decision mainly on price. However, Pepsi Twist has charge the same

amount of price that the competitor offers. So, we can say that the Pepsi Twist is not

price sensitive. The other type of buyer power relates to negotiating power. Larger buyers

have more leverage with the firm, and can negotiate lower prices. However as an FMCG

the buyers do not tend to negotiate with the Pepsi Twist.

Page 20: Re branding of pepsi

Factors influencing their buying decision:1. No calorie2. Attractive ads3. Lots of information about product4. Brand image of Pepsi5. Moderate Price6. Availability

Market Segmentation

As we know that PepsiCo provides varieties of beverages such as carbonated soft drinks, 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 to attract different groups of consumers.There are two levels in which Pepsi segments its market:

Demographic

Niche marketing

Niche Marketing

Pepsi focused n varietals differentiation since 1990 by introducing a string of niche products. To increase volume in order to counter flat coca sales, Pepsi introduced Sierra Mist in2002-2003 to 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 specific target markets

Page 21: Re branding of pepsi

that it currently is not reaching. Pepsi has introduced Code Red and Live Wire, extensions of Mountain Dew, Pepsi One, and Pepsi Blue. Pepsi Max is one of them

Demographic

In focusing on the Pepsi-Cola beverage product, PepsiCo has retained a long history of concentrating on youth as its main target market – “Generation Next!” It has spent billions of dollars in trying to woo the young and nearly young, implying that Coca-Cola is for the older generation. The reason why Pepsi-Cola has fiercely targeted this market is because it is the largest amongst its users. Market segment profiles have shown that the majority of carbonated beverage drinkers are youth and middle age people. Also, Pepsi continually targets the college market in which they spend huge amount of money to compete with Coca Cola in

Bases of Segmentation:

Segmentation Variables DataDemographicAge 14-30+Gender Male, FemaleFamily Size 1-2, 3-4, 5+Family life cycle Married, UnmarriedPsychographicSocial class Middle Class, Upper ClassLifestyle Actualizes, Fulfilled, Believers, Achievers,

Strivers, Experience’s makers and Strugglers

BehavioralOccasions Parties, Birthdays, Sports and Regular

OccasionsBenefits Quality, TasteUser Status First time userLoyalty Status StrongReadiness Stage Aware, Interested

Page 22: Re branding of pepsi

Positioning Strategy

Pepsi Max plans to further create positions that will give products the greatest advantage in their target markets. Pepsi Max will be positioned based on the process of positioning by direct comparison and by products to benefit their target market. Campaigning of the product will make the conviction in consumer’s mind that PEPSI MAX contains maximum taste and minimum fat. Advertisement, promotional management, sampling will be able to grab a particular position in consumer’s mind. We hope people will switch to dies brand product from local energy drinks as it will be positioned successfully in market.

Positioning strategies:

“Maximum taste, no sugar” and “live life to Max”.

Giving information about the product: we will give the highest level of information about our product to consumers. They will know more about our product and they will buy more

Available in everywhere: we will make our product available in everywhere. I mean people will find our product in their nearest retail shops.

Informative and attractive ads: Our commercial ads will be both informative and attractive. Only attractive ads won’t work. When people will get more information they will be more curious for our product.

Campaign: We will do campaign to interact with customers directly. This will affect our customers.

Sponsorship: We will sponsor concerts, sports events. These types of activity bring more popularity.

Pepsi Max- Target Market

Page 23: Re branding of pepsi

Presently Pepsi Twist is targeting the mass. It means that they have comparatively same

advertisement and selling strategy for each segment and each different age group. But

here our main focus will be the young generation and for them we are developing our

advertising plan and strategy.

Here one thing is to be noted here that, under the Pepsi Twist Company we have another

two different kinds of beverages and they are Sprite and Fanta. So our main advertising

for Pepsi Twist will be in a way that it should also simultaneously bear the messages for

those two beverages.

One thing cannot also be ignored. That is we need to consider the retailers perspective for

planning our advertisement. Because if they don’t put the product Pepsi Twist in their

shelves, it is obvious that our target customer will not find it when they required and they

will be dissatisfied towards this brand. So our advertisement will also convey the

messages to the retailers.

Current Target Market

Pepsi expanded its target audience from the adult to all family members who required

cheer and joy. Pepsi was a great taste to be enjoyed by everyone.

The teenagers remain a key target audience for Pepsi's marketing, despite increasing

public concern at the health impacts of sweets and fizzy drinks on young people.

Although Pepsi claims that it practices strong self -regulation and does not target children

under 12 in its advertising. The company has billions of vending machines in schools,

which proves it has a heavy impact and influence on the children who derives pleasure in

consuming the product. Pepsi Twist sale~ representatives have distributed training packs

at schools called 'Education Thirst', providing facts on how children can get enough

fluids, control their weight and maintain dental health. Such actions by the company

prove its main focus on the target audience which is the children although the company

intends to sell its products to consumers of all ages.

Page 24: Re branding of pepsi

Competitors

Competitors of PEPSI MAX

Competition within beverage industry can be weak, or it can be strong. If there are too

many competitions are present in the market then the situation will be intense and if there

are few competitors present in market then competitions will be low. Main competitors

are-Diet coca cola ,Diet RC,Virgin n the energy drinks like-Shark,Tiger,Black Horse etc.

Factors affecting the competition

1. Product Differentiation

“Pepsi Max” has differentiated their product according to consumer preferences. They

have different bottle size available for different group of consumers. Currently they are

offering 4 types pack size to meet the customers demand.

2. Number of competitors

Page 25: Re branding of pepsi

Only Coke, RC cola and Virgin provide sugarless beverage. But sugar free PEPSI is not

currently in the market. The competition between these three companies won’t be that

strong because PEPSI posses a higher brand value then RC cola and Virgin.So, launching

of PEPSI MAX will be successful.

3. Advertising Expense

Since, this product is totally new in market the massive advertise is needed to grab the 1st

attention of the audience. Marketing strategy will determine the advertisement policy and

budget.

4. Exit barriers

There are almost no exit barriers in this industry. However, this industry requires a huge sum of investment which can be a barrier for a firm to cope up the exit cost and shrink the brand image associating with the product.

MARKETING MIX- 4P

Marketing Mix of Pepsi

PepsiCo is one of the world’s largest food and beverage companies, with 2007 annual revenues of more than $39 billion. The company employs approximately 185,000 people worldwide, and its products are sold in approximately 200 countries through four P’s of the Marketing Mix which are following.

1. Product

2. Promotion

3. Place

4. Price

1.Product

Page 26: Re branding of pepsi

Pepsi Max is a sugar less,calorie free drink which servers the energy drinks purpose as well.This product will be available in three shapes in market.The product wil be available in shop,grocery shops and every convinient place.

2.Promotion

PepsiCo has advertised its products through many different ways and media. Through TV, we have seen different advertisements of its products such as Pepsi or Dew. PepsiCo also advertise its products by targeting those favorable television programs, like sports, TV series etc. Through newspapers like Jung and Dawn, PepsiCo has advertised a wide range of products it offers to its customers. The usage of Posters is also used to create awareness of the products that PepsiCo offers.

3.Place

Decisions with respect to distribution channel focus on making the product available in adequate quantities at places where customers are normally expected to shop for them to satisfy their needs. Some of its supply source capabilities are:

Less breakdowns

High quality

Flexible supply capacity

Mature production process

Venues where Pepsi is sold off-site consumption include grocery stores, convenience stores and vending machines. However, Pepsi Max will be most effective in grocery stores This is contrary to the fountain station channel, when Pepsi has less than half the market share.

4. Price

Pepsi being a company that emphasizes on product quality tends to sell its products with price range from moderately low to high prices, depending on the use and the targeted customers.

Sample List of PricePepsi Max PriceCan ( 250 ml) 30tkPet bottle (500 ml) 25tkLarge bottle ( 2L) 80tk

Page 27: Re branding of pepsi

SWOT ANALYSIS of ‘PEPSI TWIST’

STRENGTHS WEAKNESSES

Strong value proposition

Superior product performance

Better product life and durability

Regular consumer research

Excellent marketing channel

Prestigious Distinction and

Certification

Fully automated manufacturing process

Strong IT solutions and broader

communication system

Committed Management Level

Current shortage in production

No direct marketing

Limited Export

Limited budget for advertisements

No regular training program

OPPORTUNITIES THREATS

Develop market with existing products

Current Market leader

Higher Profit Margin

Greater Consumer Response

Extended export opportunity

New product development

Currently no threats

Invention of Disease causing bacteria

Strikes and political crimes

Environmental disaster

Frequently changing lifestyle

DEVELOPING IMC

Page 28: Re branding of pepsi

Communication Objective:

Through various medium of advertising such as tv ads,posters, newspaper and events,

customers are aware of different range of PepsiCo products. PepsiCo also made used of

several celebrities such as Britney Spears to market its product. This create a perception

of young and cool image for the brand , which is easy for Pepsi Co’s target market-

teenagers and young adult, to identify.

We will use celebrities in our promotional campaign or commercial ads. Celebrities can

position the product in consumers mind. Young guys are always like to follow their role

models. We will use local celebrities for our commercial ads and campaign. We see that

Pepsi is already using our local celebrities like Shakib Al hasan and Ashraful. Before that

they used some rock stars for their commercial ads. So we will follow this trend. Then the

people, especially young generation will be attracted by our Pepsi Max more.

Budget

For launching Pepsi Twist in Bangladesh in markets while budgeting we have to consider

some specific things. The things are promotional cost, salary cost; rent cost, ingredients

cost, package cost, transport cost & other costs.

Fixed cost:

Promotion cost - TK 2, 37, 65,700

Salary cost – 39, 00,000

Rent – 24, 00,000

Variable cost:

Ingredient cost – 5tk per 250 ml

Package cost – 2tk per 250 ml

Transport cost – 1tk per 250 ml

Page 29: Re branding of pepsi

Cost per 250ml bottle = fixed cost p + variable cost

= 6+5+2+1

= 14tk

Total cost = 2,37,65,700 + 39,00,000 + 24,00,000 + 3,00,00,000

= 6, 00, 65,700tk

Price charged for 250 ml = 15tk

Break even = 15*40, 04,380

= 6, 00, 65,700tk

So if the company can reach to sale 40, 04,380 bottles it could reach its break even.

Before going to budgeting and timing for the advertisement, we should take into

consideration, in which media we are placing our ads and what media cost how much.

We divide our advertising program into two stages, one is pre-launch of the Ad campaign

and the other is Actual Launch of the Ad Campaign. Before dividing our advertising

budget, we need to look on which are we are going to emphasize. We will place our ads

on:

Print Media: Prothom Alo, the Daily Star, Ittefaq, Jonokontho.

Electronic Media: NTV, ATN, Channel I, Channel 1, RTV, etc

Out of home Advertisement: Billboards, Transit Advertising,

Concerts, etc

Public Relations: Press Release, Newsletters.

Page 30: Re branding of pepsi

Budgeting for the Print Media:

Newspaper Position No of Days Rate Cost

Prothom Alo 1st page, 10

inch 10 column

3 days a week

(12 days a

month)

Tk 6500 per

inch per

column/day

(approximate)

Tk 78000

The daily Star 3rd page, 6 inch

6 column

3 days a week

(12 days a

month)

Tk 4000 per

inch per

column/day

(approximate)

Tk 48000.

Jonokontho 3rd page, 4 inch

4column

3 days a week

(12 days a

Tk 4300 per

inch per

Tk 51600

Advertising Budget

Pre-launch of the Promotional campaign

Actual Launch of the Promotional Campaign

Print Media Electronic Media Out of home Advertisement

Page 31: Re branding of pepsi

month) column/day

(approximate)

Total Print media cost per month: TK 177600

Advertising Budget for the Electronic Media:

Channel Time Slot Duration Rate Cost

NTV 7 pm to 10

pm

30 sec each

ad X 60 ads

per month

Tk 118 per

second(approximately)

Tk 212400

BTV 7.30 pm to

10pm.

30 sec each

ad X 40 ads

per month

TK 750 per second

(approximately)

Tk 900000

ATN Bangla 6.00 pm to

10 pm.

30 sec each

ad X 50 ads

per month

TK 200 per second

(approximately)

Tk 300000

Total Electronic media cost per month: Tk 1412400

Total Budget for one year:

Media Total Cost

Print Media TK 10,21,200

Electronic Media TK 88,27,500

Out of Home Advertisement TK 80,25,000

Others (Sales promotion, PR, Personal selling etc.) TK 58,92,000

Total cost for one year TK 2,37,65,700

Note: All these print and electronic rate figures are based on estimation.

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MEDIA MIX

Media information

Print Media: Prothom Alo, the Daily Star, Ittefaq, Jonokontho.

Electronic Media: NTV, ATN, Channel I, Channel 1, RTV, etc

Out of home : Advertisement: Billboards, Transit Advertising,

Sponsorship: Concerts, Fair, Sports etc.

Current media plan: Current media plan: As this product is

totally new, there is a certain level of risk here.So, not to invest

in a massive advertising will be a great idea.Initially we will

use the print and electronic media for the promotional ativities

of the product.We might provide some free samples in

particular college or campus.This is our primary plan of media

mix.we will think something bigger later on.

Future Media plan: If the product get success in market we plan to move for a huge

media mix.we will use billboards,transit advertisemnt for out home promotion.we intend

to sponsor some concerts,fairs,cultural programmes etc.

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Favorite TV Channel:

In overall data analyses, NTV secured the first position. From the survey report it is

found that the majority which is 40% ranked NTV as number 1, in second position is

BTV backed by second majority of people which is 25%, number 3 is ATN backed by

15%, channel I is in 4th position backed by 12%, RTV is in 5th position backed by 5% of

people while other TV channels like Channel 1, Baishakhi etc. are backed by only 3%

among TV channels.

Favorite newspaper:

To choice the favorite news paper, 66% people ranked Prothom Alo first. In case of

popularity, second position is secured by Daily Star, which is 17%. To 7% target

audience, Jonokontho is their favorite. 4% of people like Ittefaq most. Observer and New

Age secured the fifth position which is liked by 2% people. In sixth position are

Independent and Manobjomin together which is backed up by 1% target audience.

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Sample Advertisement :

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Sample LOGO :

Monitor and evaluation:

We will use agency for our commercial. PepsiCo uses BBDO for their commercial ads.

And this marketing part will run separately by marketing people. We will have a

marketing manager for all marketing activities. And this marketing team will make the

budget for product promotion and the way of product promotion. There is a BBDO office

in gulshan. So we can easily hire them for our commercial. They are very much

professional so they will everything properly.

We will make a balance sheet in every year. This will help us to know how property do

we have. And we will analyze our financial report. These will help us to know how much

we are spending and how much we are gaining form our product. This financial section

will run by different individuals from finance people. But they will be our company’s

employee.

We will be very much concern about whether people are liking our product or not.

Sometimes our advertisement will not attract them, sometimes it can be offensive,

sometimes they wont like the way we are representing our product. So we should monitor

these activities.

We have to be careful about market. Market research helps a lot to know about market

more. We will have to find out whether there is anything wrong or not. We will have to

be careful about our competitors. We should always monitor their product. If any new

threats come to the market we will have to monitor that also.

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If we notice that our product or advertisement is getting old, then we have to come out

with new ideas and new advertisement.

Conclusion

In conclution, we can say that we want to Rebrand Pepsi in Bangladesh as new soft

drinks with new taste. Though it is a foreign existing product we have chosen it for its

different quality and taste. As it is a sugar free drink, we think that most of the health

conscious people will like it. Another thing is that for efficiency of any

promotional campaign it is very important to determine the budget of

the camping. Otherwise we will not be able to determine the programs

that will be executed during the campaign. Here in our advertising and

promotional campaign the budgeting and programs has been properly

determined so that it can reach to the target audience with proper

message and we think that this new product of Pepsi will bring us a

huge profit and success.

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References :

http://www.pepsico.com/index.html

http://www.pepsimax.com

http://www.pepsimax.skyblog.com

http://www.pepsicola.com

http://www.pepsicola.wordpress.com

www.cassies.ca/caselibrary/winners/PepsiMeunier.pdf

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