Pepsi Drink Brand Audit

Brand Audit and Recommendations

Marketing Assignment

Submitted By:

Olalekan Page 1
 Pepsi Drink Brand Audit

TABLE OF CONTENTS

Executive Summary

Introduction

Brand Inventory and Exploratory

Strategy and Tactics for Monitoring Brand Equity and Future Potential

Recommendations

Conclusion

References

Olalekan Page 2
 Pepsi Drink Brand Audit

Executive Summary

PepsiCo Inc. is one of the major leading beverages and food manufacturers and distributor in the
world with global presence in over 220 nations, the group product includes Pepsi cola, chips,
flavoured snacks, rice, cereals, pasta and dairy products. The company currently owns over 22
brands including Pepsi, 7UP, Lays and Gatorade, currently hold over 9.6% of carbonated soft
drinks (Pepsi, 7UP, etc.), juices, ready-to-go tea and coffee, sports drinks, and bottled water
market share, second to only Coca cola at 17.5% (IRI, 2013).

Pepsi Cola brand audit will be conducted to assess the product internal and external factors as it
impact on its performance in the market, provide product differentiation, explore the brand
identity and inventory as to provide strategic and tactical recommendations that will help in
maintaining the brand equity plans.

The brand audit is a comprehensive examination that will be used to assess the health of the
brand and as well uncover its sources of equity, improve and leverage the equity (Keller, 2014).

1.0 Introduction
Olalekan Page 3
 Pepsi Drink Brand Audit

PepsiCo came into existence in 1965 with the merger of two major food and beverages company:
Pepsi-Cola and Frito-Lay, Incorporation, the merger of the companies maintained the production
of the several brands for which the two companies were known for, which includes Pepsi-Cola,
Mountain dew and Diet Pepsi (Pepsi-cola), Lays potato chips, Fritos corn chips, Cheetos
cheese, Ruffles and pretzels (Frito-lay), the company further grew bigger with acquisition of
Tropicana (1998) and Quaker Oats merger in 2001 (Bailey, 2010).

Pepsi as a global brand competes with local, regional, national and global food and beverages
companies but its major rivals remains Kellogg, Kraft , Nestl (in the food sector) Coca-Cola, Dr
Pepper , Red Bull and Monster Beverages (in the beverages sector) (Bailey, 2010).

Brand audit is a systematic process of carrying out a brand or product health check as to identify
the problems associated with its performance in the market and to fashion out means to address
them. It is also defined as a thorough examination of a brands current market position
compared to its rivals (Williams, 2013). Sylvester (2014) described Brand audit as a
comprehensive process of identifying measures to meet its customers needs better and for
revealing new growth opportunities.

Pepsi brand audit is being considered as to have an oppourtunity to study the various aspects of
the product branding such as the brand positioning, communication, and customer relationships.
A review of its effectiveness will also help in determining the strength of the brand together with
the weaknesses and opportunities for new development and performance improvements (Keller,
2013).

This brand audit will entail a good analysis of the product positioning, brand values, unique
selling proposition (USP), the brand essence, corporate identity, marketing policies and customer
services activities.

Olalekan Page 4
 Pepsi Drink Brand Audit

1.1 Pepsi Brand Inventory and Exploratory

1.1a Brand Inventory

This is a part of the brand audit that examine the sources of the brand equity, it provides a
detailed profile of the product current marketing strategic efforts of the company and helps in
suggesting what customers current perceptions of the brand is based on. It is a descriptive
activity that provides a comprehensive profiling of the brand, target audience and other key
brand benefits (Keller, 2008).

Brand Position

The term brand position represents the perception an organisation is creating for its product
i.e. what the customers feel, think or perceive the brand to be (Keller, 2013). Pepsis brand
positioning was based on is sweet sugary taste that suited young consumers, the product has
always been presented as a refreshing beverage carbonated drink of the youth. The main
intention of this young people positioning was based on tapping on the young generation
market that is not being exploit at great length by coca cola at present as to create a point of
difference from the industry market leader; Coca cola.

Target Audience

As it was stated by the company on its website to create a stronger overall consumer experience
(PepsiCo, 2013), this assumption was further buttress by Interbrand that Pepsis success with younger
generation as a target was based on its ability to focus and concentrate on activities that suits there
yearning and branding efforts that links up with them conveniently (Interbrand, 2013).

The target audience of Pepsi are younger active adults which comprises of adults aged 16 to 45,
typically of middle class, rural and urban dwellers (Interbrand, 2013). Furthermore, Pepsi was able to
identify those with interest in entertainment and sports as a target audience and concentrate on them
which have also proven to be a profitable target for the company (Horowitz, 2011).

Brand Benefits

Olalekan Page 5
 Pepsi Drink Brand Audit

Brand benefits describes the personal value and meaning attach by consumers to the product and its
attributes (Keller 2013), the benefits associated with the consumption of Pepsi includes curing
thirstiness, to placate crave for cola and need for caffeine boost and Pepsi has an extensive portfolio
of products that can able to satisfy and meet the fundamental needs of beverages by its consumers.

Purchase Motivators

As a measure for the company to reinvigorate the brands particularly compete more effectively with the
market leader in the beverages drinks industry (Coca-Cola), artificial sweeteners were added to the
cola to provide a refreshing sweet tasting and bold cola that will make the brand more appealing to the
consumers (Choi, 2012). Pepsi key motivator that influences purchases and loyalty to the brand lies in
its variety of formulas.

Brand Character

Despite having a low market share compare to Coca-Cola, Pepsi continues to position itself on the
strong edge in the beverage drinks industry rather than allowing itself to be dominated or overshadowed
by the stronger competitor. The character of the brand shows confidence and aggression which helps in
communicating youthful and hip brand image for its customers (Choi, 2012)

Brand Portfolio

The brand defines the architecture of the brand , Pepsi through strategic activities like acquisitions,
mergers, partnerships , new products innovation and developments was able to expand its brand
portfolio which make the brand as one of the major flagship in an industry with over 200 similar
products with little differentiation (Keller, 2013). Pepsi through its varieties of product portfolio was
able to offer unique and refreshing brand that better appeal to a large audience.

Brand Performance

With Pepsi current portfolio of products that offers the consumers with trusted quality products, the
company opens the product component to the consumers knowledge by placing on its website
extensive ingredient glossary to explain to their consumers, how the ingredients are combined
together to create a perfect beverage for their satisfaction (PepsiCo, 2013). This greatly help Pepsi as
a challenger brand to Coca-Cola that was criticized for its ingredients (Nordin, 2011), to ensure
consumers experiences with the brand meet their expectations (Keller, 2013).

Olalekan Page 6
 Pepsi Drink Brand Audit

Brand Imagery

Brand imagery describes the intangible affiliations of the product, Pepsi uses its global prestigious
reputation to influence its consumers social and psychological needs, the use of popular entertainment
and sports personality like Britney Spears, Beyonc, Ray Charles, Jeff Gordon, Nicki Minaj and
Ronaldinho was effective in appealing to the social sense of its consumers. It is also important to notice
that all these used celebrities in advertisements are known for energy, fun, adventure and success in
their field which is exactly the sort of image Pepsi seeks to show and portray about its products
(Bazil, 2013).

Brand Personality

This refers to the ability of brand to personified itself, taking human like status to influence
consumers behaviour, Pepsis has over the years been able to develop personality like
sincerity, excitement, energy and adventure which speaks and connect very well with the
younger audience., most of its advertisement shows an active and vibrant individual which
helps in appealing more to its target audience (Keller, 2013).

Brand Feelings

This describes the consumers emotional responses to the brand, Pepsi portray of itself as an
exciting and fun loving product evoke their consumers feelings and many loyalists were
built through the feelings.

Adaptability

The brand ability to adapt to environmental changes is also essential, with the growing
awareness for healthy products and green revolution , it is important for Pepsi to respond
accordingly which led to new product innovation like Diet Pepsi, Pepsi Light and Pepsi Max
as a means to appeal to their consumers consciousness.

The brand logo revolution over the years also embraces change and its ability to adapt over
time.

Olalekan Page 7
 Pepsi Drink Brand Audit

Fig 1: Pepsi Logo over the years (Source: Google, 2015)

Promotion

Pepsi uses various marketing activities which includes print and digital, social media campaigns,
social responsibilities and sponsorship, direct marketing and electronic media to promote its
product , which was acclaimed to be a major contributor to the success of the product (Bazil, 2013).

I.1b. Brand Exploratory

Brand exploratory is a research activity conducted by an organisation to understand the thought

and feeling of its consumers about the brand in question; it helps in identifying the sources of
brand equity by evaluating both the internal and external beliefs about the consumer
perceptions of the brand (Keller, 2013). For a broader understanding and in-depth analysis of
the brand, qualitative research techniques are often employed in the exploratory analysis
(Citeman, 2012).

Brand Position

For the Pepsi young active urban consumers, Pepsi soft drinks is perceived as a refreshing, sweet
tasting drink that provides them energy and exciting unique burst to get through their day to day
activities.

Olalekan Page 8
 Pepsi Drink Brand Audit

Fig 2: Consumer Mental Map for Pepsi (Source: Beach, 2012).

Target Audience

Beverages drinks consumers across the world are found to be inspired by the Pepsi brand in a
research conducted at the West Virginia University which indicated that most younger Caucasian
women aged 16 to 45 who resides in urban areas preferred Pepsi cola to its bitter rival: Coca-cola and
that majority of younger beverages drinks consumers perceived Pepsi to be more appealing to them
than other products (Beach, 2012). This is an indication that the target audience of the product is
actually being reached and satisfied as the company desires.

Brand Portfolio

Pepsi as one the biggest world distributor of beverages with portfolio that includes carbonated soft
drinks, juice drinks, , sports drinks, bottled waters, ready to drink tea and coffee(PepsiCo, 2013),
however with these expansive portfolio of products, west Virginia universitys research found that a
big majority of its consumers are less aware of most of its products.

This is an indication that portfolio perception of the brand consumer is quite low (Baldini, 2014).

Olalekan Page 9
 Pepsi Drink Brand Audit

Brand Performance

Despite the brand claim of trusted and quality ingredients, a recent consumer reports shows their
concerns of potentially cancer causing ingredient in the product (Terry, 2014), likewise, Pepsi and
other Cola products has phosphoric acid as ingredients which is also known as a cheap cleaning
products further make the consumer reliance and belief in the claimed performance status of the
products to be doubtful (Richards,2012). However, the accepted view of Pepsi to be using more
healthy and natural ingredients for their product has been well received by the consumers which helps its
performance in the market.

Pepsi also price as an important aspect of its performance, the brand try always avoid price war with
Coca-cola as a measure of keeping its brand equity.

Brand Imagery

The use of entertainment and sports celebrities has helped in contributing immensely to intrigue
and appeal to its consumers social needs, most of their image launcher are young athletic fun loving
celebrities at the peak of their career such as Mariah Carey, Britney Spears which tend to give their fans
the notion that If Britney drinks Pepsi, so will I (Badini. 2014). The imagery view of Pepsi by its
consumer is healthy.

Brand Personality

Through the personality created by the brand to influence its consumers consumption, the
Pepsi viewed the brand as one that thinks out of the box to create good personality as Nolan
noted Pepsi creates culture and embraces individuality (Nolan, 2012), Pepsi position itself
as part of its consumers life the brand is injected with fun and entertainment to get you
through a hectic day (Johnson, 2011).

Brand Feelings

As opined by Nolan through his Pepsi brand audit research Pepsi in striving for its
consumers acceptance and love promotes community peace, warmth and traditions(Nolan,
2012) which majority of its customers to belief Pepsi can fulfil their sense of comfort and
social needs (Nolan, 2012).

Olalekan Page 10
 Pepsi Drink Brand Audit

Logo and Packaging

Consumer feedback shows that many are not very keen about the Pepsi logo while
some have some emotional attachments. They likewise have mixed opinions about the
sleek packaging of the canned products and one of the drawbacks is the small that
makes it hard for customers with eyes defection to read what is on the can (Nolan,
2012).

1.2. PEPSI SWOT Analysis

The SWOT analysis stand for the Strength, Weakness, Oppourtunity and Threat associated
with a business within his market environment, the knowledge of these factors are very
essential for PEPSI in planning and creation of leverage in its branding activities as to
minimise weaknesses, take advantage of the oppourtunities with its strength and provide focus
and refine its strategy to mitigate the impacts of the threats (Sabur, 2012).

Olalekan Page 11
 Pepsi Drink Brand Audit

Fig3: Pepsi SWOT Analysis

2.0. Strategic and Tactical Recommendation for Maintaining Brand Equity

For the brand to continue being successful, it goes beyond just building the brand equity but as
well required strategy and tactics to manage and maintain the brand equity. The brand audit
already provided Pepsi with information on the area that that needs to be improved to remain
competitive in the beverages drinks industry.

Benefit of positive brand equity to Pepsi are Price premium, Long term loyalty and increased
market share, however, it is essential for the brand to maintain this positive equity as to avoid
to product diminishing before the customers eyes if not protected or managed efficiently.

Olalekan Page 12
 Pepsi Drink Brand Audit

Kelvin Keller came up with a model known as the Customer-Based Brand Equity (CBBE) ,
he developed this as a pyramid to highlights the four key levels for the creation and
maintenance of a successful brand equity, which are Brand identity, Brand meaning, Brand
responses and Brand relationships(Keller, 2004).

Fig 4: Keller CBBE Model Pyramid (Source: Keller, 2004).

The concept behind this Brand Equity Model is that business must shape what it wants the
customers to think and feel about its product by building right type of experiences around the
brand to create a specific, positive thoughts, feelings, beliefs, opinions, and perceptions
about the brand (Mindtools, 2011).

Strategic Application of this for Pepsi

Stage 1: Brand Identity The Salience stage (Who Are you?)

It is essential at this stage for Pepsi to know who its customers are by researching the to gain a
thorough understanding of how and what the customers see the brand, explore any other

Olalekan Page 13
 Pepsi Drink Brand Audit

possible segments and narrow the consumer choices in choosing between Pepsi and its
competitors.

Stage 2: Brand Meaning (What Are You?)

This is the stage at which Pepsi develops strategies to communicate the importance and benefit
of its brand to the customers, this rely extensively on the brand performance and imagery.
Pepsi used is extensive portfolio and ability to easily adapt to the needs and wants of its
consumers to express its performance an used the entertainment and sports personalities to
buttress how well they meet the social needs of their consumers.

Stage 3: Brand Response (What do customer think or feel, about the brand?)

The customers' responses based on their "judgments" and "feelings" are conveniently being
catered for by Pepsi with strategy and tactics of producing and ensuring good quality of the
product, maintain its credibility with expertise and innovation, trustworthiness, and
likability, ensure the customer consideration by continuously developing the product to
always be relevant to the consumers and by as well maintain the brand superiority with good
innovation and right positioning (Keller, 2004).

Stage 4: Brand Resonance (How Much of a Connection?)

This is the "resonance" stage at which the consumer want to be associated with the brand,
Pepsi understands this level to be the status they deeply desires and as measure to promote this led
to engaging in social responsibilities, creation of social networking framework on its website to
allow consumers involvement in decision making about the product and involvement in the
fair trade scheme to create the consumers behavioural loyalty, attitudinal attachment to the
brand, sense of belonging and active engagement with the brand

Rightly following the suggested steps in the Kellers model will be helpful for Pepsi in
maintaining and manage its brand equity over the next 3 years.

Olalekan Page 14
 Pepsi Drink Brand Audit

Recommendations

As part of the measure for Pepsi to have a positive brand equity and maintain it, it will
suggested that its product portfolio should be adjusted to truly reflect the needs and demands
of its consumers, extend his target audience to go beyond the young adults and increase its
communication medium to improve the consumers knowledge about his brand portfolio.

In addition for imagery improvement, use of real life professionals to promote its brand may
also help in attracting a new segment of the market for its products and devoting efforts across
social media platforms will also help in better communication and market segment
improvement.

Olalekan Page 15
 Pepsi Drink Brand Audit

References

Baldini, K. (2014), discussion board response, retrieved online from https://ecampus.wvu.edu/ on

20/11/2015.

Bazil, M. (2013), Dr. Pepper Snapple and the competition, retrieved online from
http://beta.fool.com/muhammadbazil/ on 20/11/2015.

Choi, C. (2012), Diet Pepsi recipe gets another artificial sweetener. Retrieved from
http://www.huffingtonpost.com/ on 17/11/2015.

Dorsey, A. (2009), Caffeine free Pepsi review, retrieved online from

http://nofreerefill.wordpress.com/ on 15/11/2015

Horowitz, A. (2011), the real differences between Coke and Pepsi people , accessed
online from http://www.businessinsider.com/difference-coke-pepsi-people on
08/12/2015.

http://www.pepsico.com

Interbrand. (2013), Best Global Brands 2013. Retrieved from

http://www.interbrand.com/en/best-global-brands/2013/Pepsi on 11/12/2015.

Johnson, J. (2011). Pepsi vs. Coke: The power of a brand accessed online from
http://designshack.net/articles/graphics/pepsi-vs-coke-the-power-of-a-brand/ on
10/12/2015

Keller, K. (2013). Strategic brand management (4th edition), Upper Saddle River,
NJ: Prentice Hall.

Nolan, H. (2012). Pepsi creates culture and embraces individuality. Accessed

online on 03/12/2015.

Williams, B. (2009), a product review of caffeine free diet Pepsi: Low sodium cola.
Retrieved from http://voices.yahoo.com/a-product-review-caffeine-free-diet-pepsi-low/

Olalekan Page 16
 Pepsi Drink Brand Audit

on 10/12/2015.

Olalekan Page 17