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Price:
The second element, price, is all about offering a
product for an appealing price - one that still allows
PepsiCo to make a tidy profit from the sale of their
drinks.
Place:
The third element, place, is about distribution of soda
drinks. Drinks may be sold in mass chain stores, such
as Wal-Mart, and in an array of other retail stores, such
as drug stores, grocery stores, and corner stores or
bodegas. Distribution is the key to getting the product
in front of consumers, so place is a very important part
of the overall sales equation.
Promotion:
Promotion includes the marketing and advertising of a
product. In the case of Pepsi, marketing is international
and takes place in every form of mass media including television ads, print ads, and online
marketing.
Marketing Strategy:
Selecting Customers to serve:
Marketing Segmentation: Pepsi segments its market in
several ways. Pepsi, mainly segment their market
demographically assuming age, income and family size.
Pepsis behavioral segmentation has been a key to the
companys
success.
Age is one of the most significant parts of the
Amount of
product
Lower
Higher
Production
cost
Market Segmentation
As we know that Pepsi is provided among a huge
population which is called market. To distribute it and
increasing the revenue the market should be segmented.
Pepsi has segmented their market keeping four major
segmentation variables in their mind which are:
Geographic
Demographic
Psychographic
Behavioral
Geographic Segmentation:
Geographic segmentation means dividing the market into
different geographical units such as nations, regions,
states, countries, cities or even neighborhood. Pepsi has
put
little
emphasis
to
segment
their
market
geographically. They are doing business almost in
maximum places around the world.
Demographic Segmentation:
Despite the large customer base in the Soft Drink
industry, Pepsi prefers to segment itself as the beverage
choice of the New Generation, Generation Next, or just
for the people who seek for benefits off their products, to
their loyal customer base. Occasional cases like religious
festivals; special days like mothers day, valentines day,
friendship day, any individuals birthday or marriage
ceremony or anniversary in a word in every special
occasions there are people to whom buying Pepsi for
celebration is must.
Segmentation
Variables
Geographical
Data
World region
Country
Cities
Density
Climate
Demographic
Asia
Bangladesh
All major cities
Urban
Tropical wet
Age
Gender
Family Size
Family Life Cycle
Psychographic
Social Class
Lifestyle
14-30
Male, Female
1-2, 3-4, 5+
Married, Unmarried
Personality
Behavioral
Occasions
Benefits
User Status
Loyalty Status
Readiness Stage
Market Targeting:
Product Differentiation
Channel Differentiation
Image Differentiation
Channel Differentiation:
Coke and Pepsi distribute their drinks through
independent bottlers. These firms make the ingredients
for the drinks and then ship them to the local bottlers,
who pretty much finalize the product. After this is done,
this bottler has the right to distribute whatever brand it
Brand strategies
Brand Positioning:
Product attributes- First introduced as "Brad's Drink".
1893 (as Brad's Drink)
1898 (as Pepsi-Cola)
1961 (as Pepsi)
2014 (as Pepsi-Cola)
Product Benefits- fountain drink, aid in digestion and
boost energy (1893).
Soda (carbonated soft drinks), with different types of
calories and taste.
Beliefs and Values- create with slogan they provide since
1893-2014.
19391950: "Twice as Much for a
Nickel"
1950: "More Bounce to the Ounce"
Brand development:
Line Extension- In a line Pepsi has Diet Pepsi, Pepsi Next,
and Pepsi Zero etc.
Consu
mer
DISTRIBUT
ORS
WHOLESA
LER
RETAILER
S
CONSUME
RS
Manufactu
rer
Wholesale
rs
Retailers
Consum
er
Number of Intermediaries:
Pepsi Provides direct and indirect employment of 1, 50,
000 people (including suppliers and distributors).
Distributors:
Distributors frequently have a business relationship with
manufactures that they represent. The distributors of
Pepsi maintain exclusive buying agreements that limit the
number of participants. The distributor becomes the
companys direct point of contact. Distributors dont sell
the product directly to consumers. At first PepsiCo
supplies Pepsi to the distributors. Then they resale the
product to wholesaler or retailer. According to
http://www.exporters.sg/, there are 70 distributors of
Pepsi. Some of them are:
OTC GLOBAL LTD, INDIA (Exporting and importing Pepsi in
500 ML pet Bottles )
SUNRISE FOODSTUFF JSC, VIET NAM (Exporting FamousBrand Pepsi Soft Drinks 330ml.)
Wholesalers:
The wholesalers of Pepsi generally buy a large quantity of
products directly from distributors or the company. Then
TRADING
LLC
(Exporting
Brand
Distribution
Poland
(Exporting Pepsi 0,33L 24 cans case)
and
LTD, POLAND
Retailers:
Retailers consist of small and large for-profit businesses
that sell products directly to consumers. The retailers buy
small quantities of an item from a distributor or a
wholesaler. Then resale them to consumers. According to
http://www.exporters.sg/ there are 563 retailers of Pepsi.
Some of the retailers are
Akin Enterprise, BANGLADESH.
ANSii Computers, BANGLADESH
The channel of distribution is a structure which
presents a choice among alternative channels of
distribution of the different marketing situation faced by
retailers, wholesaler and producers within the structure.
To bearing maximum profits of all institutions concerned a
channel of distribution should be treated as a unit of total
system of action.
Advertising:
For advertising, it used printed and electronic media.
Every
newspaper
and
magazine
carries
Pepsi
advertisements that make the people interested toward
it. Advertisement of Pepsi are eye catching and
attractive. Through advertising it informs the consumer
about new brands and flavors. Pepsi designs their
advertisement campaign focusing on the target markets.
They research for the need of people before make the
ads.
Sale promotion:
Pepsi has used a variety of sales promotions over the
years. They have used celebrity such as Michal Jackson,
Beyonc for endorsements. This has been shown with
the use of Beyonc.
Personal selling:
Pepsi use pull strategy for selling the product. In every
occasion Pepsi brings special offers. Like, they reduce the
price; give extra quantity of drinks in the same price.
Publicity:
For publicity Pepsi use social media such as Face Book.
Not only that Pepsi use YouTube to promote its product. It
drives public attention toward the product. Pepsi also use
brand ambassador and sponsor cricket team and world
cup for publicity.
Direct Marketing:
Pepsi uses its direct marketing to distribute their product
through PIZZA HUT, KFC etc. More than that, they use
ecommerce Such as Refreshment Services Pepsi.com to
market the product.
Recommendation:
Since there are older people and Pepsi has been
traditionally a young peoples drink, Pepsi will have
to stimulate consumption by older members of
society
Conclusion:
Pepsi has been successful in generating profits in this
extremely
rivalries industry. What the company
Appendix:
Source: MORI
Proportion size and Purchase profile
Source: www.bplans.com