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Product overview:

Pepsi is a carbonated soft drink that is produced and


manufactured by PepsiCo. Pepsi was first introduced as
"Brad's Drink" in New Bern, North Carolina, United States,
in 1893 by Caleb Bradham, who made it at his drugstore
where the drink was sold. It was later labeled Pepsi Cola,
named after the digestive enzyme pepsin and kola
nuts used in the recipe. Created and developed in 1893
and introduced as Brad's Drink, it was renamed as PepsiCola on August 28, 1898, then to Pepsi in 1961, and in
select areas of North America, "Pepsi-Cola Made with Real
Sugar" as of 2014.

Capturing Customer Value:


Marketing Myopia:
Myopia is a refractive defect of the eye in which light
produces image focus in front of the retina when the sight
adjustment is off balance. In the case of Pepsi, it only
focuses on the demand of the product and try to improve
it. But it doesnt focus on the other demand of
consumers.
Value Proposition of Pepsi:
Pepsi follows winning value propositions like More for
less, The same for less or More for the same. Pepsi
has its products from low price to high price. It depends
on the quantity. Where their 250 ml bottle is almost 20 tk
on the other hand their 2 ml pet bottle is almost 90 tk.
They are giving their product in a very reasonable price
and in different orientations so that their target
customers can afford to have it. In every occasion Pepsi
brings special offers. Like, they reduce the price; give
extra quantity of drinks in the same price thus they follow
the three winning value proposition. It depends on market
situation and competitor that what strategy they will
follow.
4Ps:
Product:
A product (in Pepsi's case, a popular soda drink with
cola flavoring) must appeal to the marketplace and
deliver taste to consumers.

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

segmentation of Pepsi. Pepsi introduces Pepsi diet for the


people who are suffering from diabetic and for those who
are likely to avoid sugar and for the aged people specially
40 plus. Pepsi mainly produces the Pepsi cola the main
customer of Pepsi cola is young people whose age is 10
to
35.
On income basis Pepsi also segment their market by
making little pack. They offer a competitive price range
to all class of people. They consider the economic
situation in our country. So they introduce Pepsi in
different price for different the people whose income is
different. They think about student, poor people, and
middle class people economic condition for their pricing.
Family size basis is also a base segmentation for Pepsi. In
our society, there are many families with different family
size. So Pepsi is served into many size 250ml, 500ml, 1L,
1.5L, 2L pack. People can easily choose a suitable pack
based on their family size.
Target Marketing: The reason why Pepsi-Cola has
fiercely targeted this market is because it is the largest
among its users. Market segment profiles have shown
that the majority of carbonated beverage drinkers are
youth and middle age people. Pepsi continually targets
the Schools, Colleges, Universities, restaurants, hotels,
and fast food Stores. For this they always spend huge
amounts of money to compete with Coca Cola in
acquiring contracts with universities to have sold
representation of their product distribution. Pepsi

customers are mostly teenagers and young adults


between the ages of 14 to 29.
Marketing Management Orientation:
Production concept: Pepsi always follows Production
concept. They always more focus more on quantity but
less focus on quality. They produce a huge amount of
product, So that the cost of the production decreases.

Amount of
product
Lower
Higher
Production
cost

Marketing Concept: Pepsi follows marketing concept.


They always highlight their target markets needs and
make sure that the product is available and highly
affordable for them.

Analyzing the Marketing Environment:


Micro environment for Pepsi:
The company: PepsiCo is the company which produces Pepsi.
Suppliers: ABDUL MONEM SUGAR REFINERY LTD, IGLOO
BOTTLERS GRADE SUGAR. Tanvirs(PEPSI COLA CANS
SPEAKER), Partex Plastics Ltd. (PLASTIC CLOSURES)
Marketing
Intermediaries:
Akin
Enterprise,
BANGLADESH. ANSii Computers, BANGLADESH.
Customers: Pepsi customers are mostly young group
between the ages of 14 to 30.
Competitors: Coca Cola, RC Cola, Red Bull etc are the
competitors of Pepsi.
Macro environment for Pepsi:
Demographic Environment: In the demographic
environment, marketers must be aware of worldwide
population growth; changing mixes of age; ethnic
composition, and educational levels; the rise of
nontraditional families; large geographic shifts in
population; and the move to micromarketing and away
from mass marketing. the world population is showing
"explosive" growth, totaling 6.1 billion in 2000 and will
exceed 7.9 billion by year 2025.A growing population
does not mean growing markets unless these markets
have
sufficient
purchasing
power.
Nonetheless,
companies that carefully analyze their markets can find
major opportunities. Countries also vary in ethnic and
racial makeup. At one extreme is Japan, where almost
everyone is Japanese; at the other is the United States,
where people from come virtually all nations. Each group

has certain specific wants and buying habits. Several


food, clothing, and furniture companies have directed
their products and promotions to one or more of these
groups. Pepsi is the product which makes a balance
demographic environment.
Economic Environment: Markets require purchasing
power as well as people. The available purchasing power
in an economy depends on current income, prices,
savings, debt, and credit availability.
Marketers must pay close attention to major trends in
income and consumer-spending patterns. Marketers often
distinguish countries with five different incomedistribution patterns: (1) very low incomes; (2) mostly low
incomes; (3) very low, very high incomes; (4) low,
medium, high incomes; and (5) mostly medium incomes.
Marketers must pay careful attention to major changes in
incomes, cost of living, interest rates, savings, and
borrowing patterns because they have a strong impact on
business and PepsiCo is always aware of economic
environment for Pepsi.
Natural Environment: In the natural environment,
marketers need to be aware of raw materials shortages,
increased energy costs and pollution levels, and the
changing role of governments in environmental
protection. The earth's raw materials consist of the
infinite, the finite renewable, and the finite nonrenewable.
Infinite resources, such as air and water, are becoming a
problem such as water shortages. Finite renewable
resources, such as forests and food, must be used wisely.

Forestry companies are required to reforest timberlands


in order to protect the soil and to ensure sufficient wood
to meet future demand. Finite nonrenewable resources oil, coal, platinum, zinc and silver will pose a serious
problem as the point of depletion approaches. Dramatic
rise in oil prices can also create a renewed search for
alternative energy forms. Some industrial activity will
inevitably damage the natural environment. About 42
percent of U.S. consumers are willing to pay higher prices
for "green" products. This creates a large market for
pollution-control solutions, such as scrubbers, recycling
centers, and landfill systems. Governments vary in their
concern and efforts to promote a clean environment.
Many poor nations are doing little about pollution, largely
because they lack the funds or the political will. Richer
nations are able to help the poorer nations control their
pollution, but even the richer nations today lack the
necessary funds. For Pepsi-Cola, the packaging of Pepsi is
closely related to the natural environment. So they
always try to make the packaging of Pepsi in recycling
format.
Technological Environment: This is one of the most
dramatic forces shaping people's lives. The economy's
growth rate is affected by how many major new
technologies are discovered. New technology also creates
major long-run consequences that are not always
foreseeable. Therefore, the marketer should monitor the
following trends in technology: the pace of change, the
opportunities for innovation and increased regulation.

Many of today's common products were not available 40


years ago. An increasing number of ideas are being
worked on and the time between the appearance of new
ideas and their successful implementation is all but
disappearing. So is the time between introduction and
peak production.90% of all the scientists who ever lived is
alive today and technology feeds upon itself. Scientist
today is working on a startling range of new technologies
that will revolutionize products and production processes.
Some of the most exciting work is being done in
biotechnology, computers and telecommunications. Many
companies are content to put their money into copying
competitors' products and making minor feature and
style improvements. As products become more complex,
the public needs to be assured of their safety.
Consequently,
government
agencies'
powers
to
investigate and ban potentially unsafe products have
been expanded. However their innovation level is not so
high but PepsiCo always try to make new innovation in
Pepsi.
Political-Legal Environment: Marketers must work
within the many laws regulating business practices and
with various special-interest groups. Business legislation
has three main purposes: to protect companies from
unfair competition, to protect consumers from unfair
business practices and to protect the interests of society
from unbridled business behavior. The laws are not
always administered fairly; regulators and enforcers may
be lax or overzealous. Marketers must have a good

working knowledge of the major law protecting


competition, consumers and society. As more business
takes place in cyberspace marketers must establish new
parameters for doing electronic business ethically. Many
companies have established public affairs departments to
deal with these groups and issues. An important force
affecting business is the consumerist movement - an
organized movement of citizens and government to
strengthen the rights and powers of buyers in relation to
sellers. The company monitors the political environment
of the many foreign nations in which Pepsi is sold.
Social-cultural Environment: In the social-cultural
arena, marketers must understand people's views of
themselves, others, organizations, society, nature and the
universe. They must market products that correspond to
society's core and secondary values and address the
needs of different subcultures within a society. People
living in a particular society hold many core beliefs and
values that tend to persist. Secondary beliefs and values
are more open to change. Therefore, marketers have
some chance of changing secondary values but little of
changing core values. Each society contains subcultures.
To the extent that sub cultural groups exhibit different
wants and consumption behavior, marketers can choose
particular subcultures as target markets. Although core
values are fairly persistent, cultural swings do take place.
Today, young people are influenced by new heroes and
new activities: Tiger Woods, and extreme sports. It must

also continue to monitor the cultural environments of the


other countries in which it does business of Pepsi.

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

as the Pepsi Generation. These terms adopted in Pepsis


advertising campaigns 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
growing American teenage market in the 1990s by
forming exclusive contracts with American schools and
developing advertising campaigns such as The Next
Generation and the Joy of Pepsi, featuring Britney
Spears. Pepsi believes that if they can get this market to
adopt their product, they could establish a loyal customer
in a long run.
Psychographic segmentation:
Psychographic segmentation divides buyers into different
groups based on social class, lifestyle or personality
characteristics. People from same demographic group can
have very different psychographic makeups. Pepsis
segmentation has also been emphasized psycho
graphically. Their beverages are very much focusing
towards lower and upper middle class as they can afford
to drink Pepsi. They have a product like Mountain Dew
a particular drink which is focused especially who has
adventurous personality. Their campaign of this drink
totally focuses to adventurous young people.
Behavioral segmentation:
Behavioral segmentation divides buyers into groups
based on their knowledge, attitudes, uses or responses to
a product. In this segment, Pepsi has been concentrating
carefully. Because they offer in every special occasions,

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

Middle Class, Upper Class


Actualizes, Believers, Fulfilled,
Achievers, Strivers, Experience
makers, Strugglers
Adventurous

Behavioral
Occasions
Benefits
User Status
Loyalty Status
Readiness Stage
Market Targeting:

Parties, Birthdays, Sports, Regular


occasions
Quality, Taste
First Time User
Strong
Aware, Interested

Market Targeting can be carried out at several different


levels. Companies can target very broadly through
Undifferentiated Marketing, very narrowly through
Micromarketing or somewhere between Differentiated
Marketing and Concentrated or Niche Marketing. There
are four strategies of market targeting. Pepsi follows the
strategy of Concentrated or Niche Marketing. In niche
marketing companies goes after a large share of one or a
few segments or niches. Through concentrated
marketing, the firm achieves a strong market position
because of its greater knowledge of customer it serves in
the niches it serves and the special reputation in
acquires. Pepsi customers are mostly Teenagers and
Young Adults between the ages of 14 to 30. It also targets
at Schools, Colleges, Universities, Homes, Restaurants,
Hotels, and Stores They focused on varietal differentiation
since 1990 by introducing a string of niche products. To
increase volume in order to counter flat Coca-Cola sales,
Pepsi introduced Sierra Mist in 2002-2003 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 that it currently is not

reaching. Pepsi has introduced Code Red and Live Wire,


extensions of Mountain Dew, Pepsi One, and Pepsi Blue.
Finally, Pepsi is countering declining sales of carbonated
drinks through the marketing and distribution of
Starbucks ready to drink products, and the acquisition of
SOBE and Gatorade. 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 more
niche product introductions for PepsiCo as well as other
competitors. In some sense Pepsi also follows the idea of
Micromarketing. As they are they are promoting their
brands to the local customer groups. They are sponsoring
the signboards for the little or big shopkeepers in town.
They are also providing refrigerator logoed Pepsi. All
these they are doing to attract their target customers..
Market Positioning:
PepsiCo plans to further create positions that will give
products the greatest advantage in their target markets.
Pepsi has been positioned based on the process of
positioning by direct comparison and have positioned
their products to benefit their target market.
Positioning Strategies of Pepsi:
To find points of differentiation, Pepsi have followed some
strategies which have differentiated themselves from
others. Usually marketers try to differentiate along the
lines of following things

Product Differentiation

Channel Differentiation

Image Differentiation

Pepsi have differentiated themselves in the field of


Product Differentiation, Channel Differentiation and Image
Differentiation. The unique characteristic of their product
and their brand image has differentiated themselves from
the other beverages in market.
Product Differentiation:
Product differentiation comes into play for sure in the
case of Pepsi. When looking at Pepsi, people think of
soda.

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

wants to a specific region. On the other hand, a brand


such as Canady Dry does something much different.
Canady Dry packages its product in several locations and
then ships them to wholesale grocers who distribute them
to the local grocery stores and outlets. This is a great
example as to why Canady Dry is strong within local
grocery stores, but why they are not present in vending
machines like Pepsi is. Furthermore, I found it really
interesting that since the vending machine market is
dominated by Pepsi and Coke, that Canady Dry actually
has to be purchased in order to get into a vending
machine; something that doesnt happen too often.
Image Differentiation:
Creating a strong and distinctive image requires creativity
and hard work. Symbols, signs, logos and color are used
to create strong-company or brand recognition and image
differentiation.
Positioning statement for Pepsi:
As we discussed earlier that Pepsi positions itself on
points of difference as well as points of parity. Pepsi's POD
is their forward thinking attitude. According to that
Pepsis positioning statement is
To new generation, those who want the best taste
in drinks, Pepsi is a cold drink which gave the best
taste, low fat in a reasonable spending.

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"

19501957: "Any Weather is Pepsi


Weather"
2012: "Change the Game"
2013present: "Live for Now"
Brand name selection:
Created and developed in 1893 and introduced as Brad's
Drink, it was renamed as Pepsi-Cola on August 28, 1898,
then to Pepsi in 1961, and in select areas of North
America, "Pepsi-Cola Made with Real Sugar" as of 2014.
The original trademark application for Pepsi-Cola was
filed on September 23, 1902 with registration approved
on June 16, 1903. In the application's statement, Caleb
Bradham describes the trademark as an "arbitrary
hyphenated word "PEPSI-COLA"", and indicated that the
mark was in continuous use for his business since August
1, 1901. The Pepsi-Cola's description is a flavoring-syrup
for soda water. The trademark expired on April 15, 1904.
Brand Sponsorship:
Inside PepsiCos One For All, All For One Sponsorship
Strategy.
In addition, PepsiCo for the first time is activating the NFL
across its full line of Pepsi products: Pepsi, Diet Pepsi,
Pepsi Max and Pepsi Next. With a portfolio that includes
the NFL, MLB, the International Cricket Council and other
domestic and international properties, PepsiCo, Inc. is one
of the worlds top sponsors in terms of annual spending.

The Pepsi Are You Fan Enough? Lounge.

Brand development:
Line Extension- In a line Pepsi has Diet Pepsi, Pepsi Next,
and Pepsi Zero etc.

Distribution Channel of Pepsi:


Marketing channels are sets of interdependent
organization involves in the process of making a product
or service available for use or consumption.By channel
distribution of Pepsi means the intermediaries or the

process through which Pepsi is transferred from the


producer to the ultimate users. There are a lot of
intermediaries between Pepsi producers and consumers.
Some intermediaries like wholesalers and retailers buy
and resale the product. They are known as merchant
middle men.
Intensive Distribution:
Pepsi Co follows an intensive distribution strategy to
distribute Pepsi. To support their universal feature they
want to place their product in as many outlets as
possible.
Distribution Model of Pepsi:
Pepsi uses two types of distribution model to distribute
the product among the consumers. They are
Direct Distribution System
Indirect Distribution System
Direct Distribution System:
Pepsi uses its direct distribution system to deliver
suppliers. It Supplies the product directly with
PIZZA HUT
KFC
According to the marketing channel Pepsi uses zero level
of marketing channels. It means
Manufactu
rer

Consu
mer

We can see there are no intermediaries between


manufacturer and consumer. This single type of
marketing channel is maintained by Pepsi.
Indirect Distribution System:
In this system, there are a lot of intermediaries such as
distributors, retailers, wholesaler etc. To make the
product available at the right places at the right time in
the market, the sales department of PepsiCo Company
pays major attention on controlling the channel of
distribution. The nature of the channel is as follows:PEPSI

DISTRIBUT
ORS

WHOLESA
LER

RETAILER
S

CONSUME
RS

So according to the marketing channel Pepsi uses 2-level


marketing channel. It means

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

they resale the product to the retailers. According to


http://www.exporters.sg/there are 70 wholesalers of
Pepsi. Some of them are:
FAR WAY GENERAL
importing Pepsi )

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.

Integrated Marketing Communications

Pepsi has popularity among the population. Therefore, it


is quite challenge for Pepsi Cola to maintain and increase
this popularity. Integrated Marketing Communications
(IMC) is one of the effective strategies that researcher
believe it will solve the existing problem in the business
area. Nowadays, competition in the market tend to
increase, the customer also change their lifestyle and
buying behavior become increasingly changed, then
using only one tool for marketing communication is not
enough. It is because many senders or organization try to
reach to the same receivers or customers. So, using
many of strategies and communication tools will help
their brand to become well known. Integrated Marketing
Communication (IMC) is a tool that suitable for
encouraging the customer buying behaviors.
Promotion
Mix
of
Pepsi:
The promotional mix element used for the Pepsi Refresh
campaign theme centered on social responsibility and
delivered with a heavy dose of social media. They took it
deeper than any other campaign, targeting the millennial
generation ages 14 to 29 by utilizing social media as an
additional source along with traditional media to launch
the Pepsi Refresh campaign. The campaign aired on paid
search and display ads on Yahoo and Google to traffic
their viewer to a link on YouTube and Face book too
included other channel like e-mail marketing and mobi
sites which drive visitors to the site.
Promotion strategy of PEPSI:

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.

Michal Jackson promoting Pepsi

They have also had essay contest to promotions through


schools. They have giveaways in stores and coupon
advertisement in newspapers.
Public relation:
Pepsi is the first product to respond to consumer
preference with lightweight, recyclable, plastic bottles. In
addition, different approaches of promotional campaigns
such as press releases have been imposed so as to make
the product more appealing to the target market and to
make these product marketable.

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

Pepsi uses Plastic bottles and cans which can be


harmful for society. So Pepsi should be produced
more in recyclable bottle
Need to improve PR activities in urban areas
In our country, with brand name people prefer Pepsi
23% but without brand name it is 51%. So need to
improve its brand value.
Should increase promotion strategy to introduce new
product line like Pepsi next, Pepsi zero etc.

Conclusion:
Pepsi has been successful in generating profits in this
extremely
rivalries industry. What the company

should do now is employ a strategy that now only


addresses its own deficiencies in an effort to grow market
share, but one that will increase the overall size of the
pie. This strategy, in the end, will allow Pepsi to grow and
sustain above-average returns.
Bibliography
Pepsi
http://www.pepsiproductfacts.com/?or=pusa.1067.
PepsiCo
http://www.pepsico.com/Company/The-PepsicoFamily.aspx .
Wikipedia: Pepsi
http://en.wikipedia.org/wiki/Pepsi.
Wikipedia: PepsiCo
http://en.wikipedia.org/wiki/PepsiCo.
Market Targeting
http://aboutpepsico.blogspot.com/2010/01/markettargeting-is-process-of.html.
http://mpmcgraw.wordpress.com/2011/02/21/product
-differentiation/.
New York Times
http://topics.nytimes.com/top/news/business/compan
ies/pepsico_inc/index.html.

Appendix:

Source: MORI
Proportion size and Purchase profile

Source: www.bplans.com

FIG. 5 REDUCTION OF WATER USED FOR MANUFACTURING AT PEPSICO INDIA, IN 2009


SINCE THREE YEARS (SOURCE: HTTP://WWW.PEPSI.COM)

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