2011

A REPORT ON ANALYSIS OF PEPSI COLA

USING CUSTOMER BASED BRAND EQUITY
PYRAMID

SUBMITTED TO:

DR. NITIN GUPTA

SUBMITTED BY:
ASHMITA DE (09BSHYD0185)

GAURAV GOYAL (09BSHYD0285)

GOURAB BHADURI (09BSHYD0299)

JAYEETABANERJEE (09BSHYD0335)

SHILPI SARASWAT (09BSHYD0778)

SUNNYMITTAL (09BSHYD0887)
ANSWER 1

BRAND AWARENESS

The concept of brand awareness refers to the ability of the consumers to recall and recognize the
brand. It can be characterized according to the depth and breadth of awareness. While depth of
brand awareness concerns the likelihood that a brand element will come to mind easily; breadth
of the brand awareness concerns with range of purchase and usage situations in which the brand
element comes to mind.

Measurement of brand awareness was done through a questionnaire in which respondents were
asked different types of questions relating to depth and breadth of brand awareness of the brand.
To measure the depth of the brand awareness, respondents were asked to recall the first cola
brand that came to their mind. To further know about the depth of awareness, respondents were
given the option of four cola brands to know about their familiarity with the brand. Also their
preference for one cola brand amongst the given brands was also asked. These questions helped
in checking the awareness level of the respondents for the product and hence the depth of
awareness.

To measure the breadth of awareness, respondents were asked the situations in which they would
like to purchase their preferred brands. Also respondents were asked about the frequency of the
consumption of the brand and duration for which they had been using the brand. To know about
the current purchase habits of the brand, the respondentswere asked about their current brand that
they were using.

Following were the results obtained from the analysis.

[A report on analysis of Pepsi Cola using Customer Based Brand Equity Pyramid] Page 1
 TOP OF THE MIND RECALL (%)
45 41.5
40
35 32.3

TOP OF MIND
27.7

RECALL (%)
30
25
20
15
10
5 0
0
Pepsi Thums Up Coca Cola RC Cola
COLA BRANDS

Above graph indicates that while 41.5% of the respondents had Pepsi as their top of the mind
recall, the percentages for Coke and Thumbs Up were 32.3% and 27.7% respectively.

FAMILARITY AND PREFERENCE FOR BRAND (%)

120
96.9
100 87.7 90.8

80
Familarity
60
33.8 35.4 35.4 Preference
40 27.7
20
0
0
Pepsi Thums Up Coca Cola RC Cola

Above graphs shows that although Pepsi had highest rate of familiarity among all four cola
brands, consumers preferred Thums Up and Coke over Pepsi. These two graphs indicate that
although there is considerable amount of depth awareness about the product brand, still lesser
number of people was actually buying the product which is a serious problem for the company.

Results for breadth of awareness portrayed a similar picture. Only 23.07% of the respondents
preferred having Pepsi for various purposes such as Partying etc. While 40% said that they used
Pepsi 1 – 3 times a week, 93.99% of them had been using the brand for more than 3 years. Hence
we can conclude that people consuming the brand for more than 3 years were buying the product
more.

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Having seeing the statistics shown above, we can say that Pepsi has good brand awareness and
more number of people are aware of the brand than any other available cola brand. But the
problem that the brand is facing is inspite of having highest awareness level, still people prefer to
buy other cola brands more, reason for which we try to find out in subsequent sections.

BRAND PERFORMANCE

The brand performance refers to the ways in which the product attempts to meet customer‟s
functional needs. There are five important attributes that define brand performance namely
primary ingredients and supplementary features; product reliability, durability and serviceability;
service effectiveness; style and design and Price.

This particular aspect of CBBE pyramid was also measured with the help of a questionnaire
wherein the respondents were asked to rate some of the statements pertaining to brand
performance on a 5 point likert scale ranging from Strongly Disagree to Strongly Agree.

Primary ingredients & Supplementary features: this attribute was measured with the help of
three variables: Pepsi cola quenches your thirst; Pepsi Cola satisfies your need better than any
other cold drink; and Pepsi Cola has special features. Respondents were asked to fill in their
responses on a 5 point likert scale and mean of these responses was taken to aggregate the data
for the main attribute. 32.3% of the respondents agreed that Pepsi Cola was able to excel on this
attribute while 41.5% believed that Pepsi Cola was not good on this attribute. 26.1% of the
respondents were neutral on this option.

Product Reliability, Durability and Serviceability: this attribute was measured with the help of
two variables: Pepsi Cola is easily available to you and Pepsi cola is a reliable brand. Again the
respondents filled their responses on 5 point likert scale. 80% of the respondents felt that Pepsi
Cola was actually reliable brand and offered good service while 15.3% believed that it did not
performed well on this attribute and 4.6% of the respondents fell into neutral category.

Service effectiveness, efficiency and empathy: We measured only empathy part with Pepsi Cola
brand as it was mainly a provider of tangible product. Variable used was Pepsi cola is trusting,
caring and has customer‟s interest in mind. 42.3% of the respondents agreed with this point
while 30.5% disagreed. 27.2% fell in neutral category.

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Style and design: To measure this, we used the variables: Pepsi cola has cool brand image and
Pepsi Cola is for whole family. 72.3% people agreed with this point while 15.4% disagreed.
12.3% fell in others category.

Price: Price was measured through only one variable: Pepsi cola‟s prices are same as that of
other brands. It was done as prices generally remain same for all the brands falling under this
category. All most all the respondents agreed with this point.

Variables Agree Weights

Primary Ingredients and supplementary features 0.323 0.25 0.08075
Product reliability, durability and serviceability 0.8 0.25 0.2
Service effectiveness, efficiency and empathy 0.423 0.25 0.10575
Style and Design 0.723 0.15 0.10845
Price 0.99 0.05 0.0495
Total 0.54445

The table above shows the weights that are assigned to each of the variables and the percentage
of population that agrees with these variables. The total comes out to be 0.5445 or 54.45%. this
implies that 54.45% people feel that Pepsi Cola has good brand performance, which is fairly on a
higher side and good sign for the company.

BRAND IMAGERY

Brand imagery deals with extrinsic properties of the product including the ways in which the
brand attempts to meet customer‟s psychological or social needs. It refers to intangible aspects of
the brand. Four types of intangibles that can be highlighted are user profile; Purchase and usage
situation; Personality and values; and Heritage, history and experiences.

Number of variables were used to measure the above said intangible aspects of the brand. The
results showed that 21.5% of the respondents associated positive image with the brand while
26.15% had negative image for the brand. 52.3% of the people were neutral about the image of
the brand. Hence we see that largely people do not associate any one image with the brand.

Personality and values associated with the brand was also measured. 52.3% of the people said
that Pepsi was a „cool‟ brand and 47.6% of the people perceived it to be a young brand.

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BRAND JUDGMENT

Brand Judgment focus on customer‟s personal opinions and evaluations with regard to the brand.
It involves four measuring tools such as Quality, Credibility, Consideration and Superiority.

Brand Quality: three variables were used to measure this attribute: How well does Pepsi Cola
satisfies your need; How good a value is this brand: and Your assessment of the product quality
of this brand. 43.1% of the respondents felt that Pepsi Cola brand was a provider of quality
products while 24.61% believed that quality of products provided by the company was not up to
the mark.

Brand Credibility: three variables were used to measure this attribute: How much do you trust
the maker of this brand; how much do you respect this brand; and How much do you admire this
brand. 40% of the respondents thought the brand to be credible while 26.1% thought the brand
not credible.

Brand Consideration: only one variable was used to measure this: how likely would you
recommend the brand to others. 35.38% of the respondents said that they were willing to
recommend the brand to others while 36.9% of the respondents did not wanted to recommend to
others.

Brand Superiority: two variables were used to measure this: how unique is this brand; how much
superior is Pepsi cola superior compared to other brands. 26.15% of the respondents felt that
Pepsi Cola was actually superior to other cola brands while 47.6% believed other cola brands
were superior to Pepsi.

Variables Agree Weights

Brand Quality 0.431 0.25 0.10775
Brand Credibility 0.4 0.25 0.1
Brand Consideration 0.358 0.25 0.0895
Brand Superiority 0.261 0.25 0.06525
Total 0.3625

Hence we see that 36.25% of the respondents actually believe that Pepsi Cola scores good on
four parameters of Brand Judgement.

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BRAND FEELINGS

Brand feelings are customer‟s emotional responses and reactions with respect to the brand. It can
be measured with the help of six factors: Warmth, Fun, Excitement, Security, Social Approval
and Self Respect.

After the analysis, it was observed that 35.4% of the respondents felt the brand was affectionate
or was able to give the feeling of warmth. Further analysis revealed that 44.61% of the
respondents felt that the brand gave them the feeling of fun. Also 52.3% of the respondents
revealed that the brand gave them a feeling of excitement. 32.3% of the respondents felt that
brand gave them a sense of security. 29.23% of the respondents believed that others looked them
favorably at them when they used the Pepsi brand. 26.15% of the respondents felt that by using
the brand they felt better about themselves and had sense of pride, accomplishment and
fulfillment.

Variables Agree Weights

Warmth 0.354 0.167 0.059118
Fun 0.4461 0.167 0.074499
Excitement 0.523 0.167 0.087341
Security 0.323 0.167 0.053941
Social Approval 0.293 0.167 0.048931
Self-Respect 0.261 0.167 0.043587
Total 0.367417

The table above shows the overall reaction of the respondents to the attribute Brand Feelings.
About 36.74% of the respondents see the brand favorably in this regard.

BRAND RESONANCE

Brand resonance refers to the nature and extent to which customers feel that they are in sync with
the brand. These can be broken down into four main categories: Loyalty; Attachment;
Community and Engagement.

Loyalty: the loyalty of the customers was measured with the help of two variables: I am loyal to
Pepsi Cola and I would go out of my way to buy Pepsi Cola. Only 16.9% of the people said that

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they were loyal to the brand and would do anything to get the product. 50.76% of the
respondents did not agree that they were loyal to the brand. Rests were in neutral category.

Attachment: the attachment to the customers was measured through three variables: I love Pepsi
cola; Pepsi cola is more than a drink to me; and Pepsi cola is special to me. 30.76% of the
respondents felt that they were attached to the brand while 44.6% disagreed on this point.

Community: it was measured through two variables: I can easily associate with people who
consume Pepsi cola and Pepsi Cola is used by people like me. 16.9% of the people were in favor
and 84.6% were against this.

Engagement: it was measured through three variables: I like to visit website for Pepsi Cola; I am
keen on knowing more on Pepsi cola; I love talking about Pepsi Cola to others. Only 18.46% of
the people agreed with this while 58.46% of the people disagreed with this.

Variables Agree Weights

Loyalty 0.169 0.25 0.04225
Attachment 0.3076 0.25 0.0769
Community 0.169 0.25 0.04225
Engagement 0.1846 0.25 0.04615
Total 0.20755

Hence we conclude that only 20.75% of the respondents believe that Pepsi Cola performs good
on four parameters of Brand Resonance.

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ANSWER 2:

Brand Strategies for enhancement of Customer Based Brand Equity of Pepsi-Cola.

After taking a note of the observations obtained from the survey analysis, we can say that though
the brand awareness is quite high with Pepsi occupying a share of 41.0% when we talk about top
of mind recall and 96.9% in terms of familiarity. Brand performance is also good at 54.45%.
Brand feelings and judgment stand slightly lower at 36.74% and 36.25% respectively.

Brand imagery indicates more of neutral attitude at 52.3% with a higher response on excitement
aspect of brand personality (cool- 52.3%, youth- 47.6%). However, Brand resonance needs to be
salvaged as Pepsi on that component fairs poorly at 20.75%. This clearly indicates that feelings,
imagery and judgment component of the CBBE model needs to be improved to have higher
levels of resonance.

All the possible Brand Strategies that come into play address the 3 drivers of brand equity-
choice for brand elements/identities, product and services accompanying the marketing and
support activities, secondary associations. Brand imagery being an intangible aspect of brand,
the consumer forms the imagery associations because of his personal experiences, advertising or
other sources like family, friends etc.

 The brand has positioned itself as a youthful product hence it has to portray the user
profile with similar image because there needs to be congruence between its image and
identity. This requires that the advertisements of Pepsi should have a cast that is typical
of today‟s youth population. In addition, they will have to make the brand relevant in
everyday life (like Cadbury‟s Dairy Milk) of a typical youth by focusing on the
conditions or usage situations that lay emphasis more on youth relevant activities. They
could go for sponsoring college annual fests, sport events, buying TV. time for channels
popular amongst youth (MTV, 9XN, Splitsvilla, Big Boss), etc.

However, on hindsight this limits the brand‟s appeal to the younger section of society only and
fails to include the other groups of the population segment. So, if they want to include all then,
may be they can focus more on fun, joy and excitement aspect and make the brand a part of their
lives.

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  To further enhance the feelings component and the imagery as well, attention has to be
given to the type of execution used in the advertisements being delivered ( slice of life,
personality-symbol, user & usage-imagery, humor, etc.). Since, feelings are on abstract
level so the advertisements should be based on emotional appeal.
 The use of interactive media seems limited which should be increased. This is important
because the penetration levels of internet have increased and the target segment is one of
the highest users of internet in India ( e.g. Sunsilk Gang of Girls).
 Product placement in movies should be increased (e.g.Smirnoff in James Bond, Audi in
Transporter, etc.) as this will provide better user imagery and secondary associations.
 Another option that should be exercised is cause marketing. They should support cause
or activities that are in congruence with their brand personality or add to it ( Tata- tea for
voting asking consumers to be smart and responsible). This could be taken at the
corporate image level as well.
 Co-branding could be promoted. A possible tie-up to sell Cadbury‟s and Pepsi for
“shubh arambh” with sweet and fun/ youthfulness” of any new aspect of ones life,
making it a part of Indian consumers life. Product bundling with its other product already
exists which should be vigorously promoted ( with Frito-lays – new year pack or Diwali
pack).

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ANNEXURES

1. QUESTIONNAIRE

An Analysis of Pepsi Cola using the Customer Based Brand Equity Pyramid

Dear Sir/Madam,

We the students of IBS Hyderabad are conducting a comprehensive view of your attitudes and perception
on Pepsi Cola. We would like you to complete the survey, as we are interested in your perspective and
opinions.

The information given by you will be kept confidential and will be used for the academic purposes only.

I. About Brand Awareness-Usage

1. Name the first cold-drink (Cola) brand that comes to your mind:

2. Which of the following Cola brands are you familiar with?

Brand Name Yes No

Pepsi

Coca-Cola

Thumps Up

RC Cola

3. Which of the above mentioned cola brands do you prefer the most?

4. If you are partying, which of the cola brands would you be carrying?

5. How frequently do you consume your preferred Cola Brand?

a. Rarely b. 1-3 times a week c. 4-6 times a week d. more than 6 times a
week

6. Since how long have you used this brand of cold drink?

a. 0 – 1 year b. 1 -2 years c. 2 - 3 years d. More than 3 years

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II. General Questions about Pepsi Cola Brand

1.Have heard about Pepsi Cola? Yes No

2. Have you used this brand? Yes No

3. Do still use the above mentioned brand?

a. Rarely b. Occasionally c. Frequently d.

Regularly

III. About Brand Judgment

1.Your overall opinion on Pepsi Cola (1 for least and 5 for highest)

Attributes 1 2 3 4 5
How well does Pepsi Cola satisfy your needs
How good a value is this brand
Your assessment of the quality of Pepsi cola
How much do you trust the maker of this brand
How much do you respect the brand
How much do you admire the brand
How likely would you recommend the brand to others
How unique is the brand
How much superior is Pepsi brand compared to other cola brands

2. Pepsi Cola is (Tick more than one)

Cool Young Happening Likeable Original Innovative

Concerned about society

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IV. About brand Performance

Pepsi Cola……

Strongly Strongly
Attributes Neutral
Disagree Agree
Is easily available to you 1 2 3 4 5
Has a cool brand Image 1 2 3 4 5
Is for the whole family 1 2 3 4 5
Satisfies your need better than other brands in same
1 2 3 4 5
category
has some special features 1 2 3 4 5
serves the basic function of the category well 1 2 3 4 5
is reliable brand 1 2 3 4 5
is trusting, caring and have customer's interest in
1 2 3 4 5
mind
Compared to other brands, price of Pepsi is same 1 2 3 4 5

V. About Brand Imagery

Please give your opinions on following points:

Attributes 1 2 3 4 5
To what extent do your friends consume Pepsi Cola
To what extent does thinking of Pepsi bring back your personal memories
How much do you like people who consume Pepsi Cola
How agreeable do you think the brand endorsers of Pepsi Cola
To what extent do you think is the time you have spent using Pepsi Cola

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VI. About Brand Feelings

Pepsi Cola gives you a feeling of:

Strongly Strongly
Attributes Neutral
Disagree Agree
Affectionate 1 2 3 4 5
Celebration 1 2 3 4 5
Satisfaction 1 2 3 4 5
Coolness 1 2 3 4 5
Youth 1 2 3 4 5
Fun 1 2 3 4 5
Social-Approval 1 2 3 4 5
Enjoyment 1 2 3 4 5
Accomplishment 1 2 3 4 5
Popularity 1 2 3 4 5

VII. About Brand Resonance

Strongly Strongly
Attributes Neutral
Disagree Agree
I am loyal to Pepsi Cola 1 2 3 4 5
I love Pepsi Cola 1 2 3 4 5
I like to visit website for Pepsi Cola 1 2 3 4 5
I am keen on knowing more about Pepsi Cola 1 2 3 4 5
I would go out of my way to buy Pepsi Cola 1 2 3 4 5
Pepsi Cola is more than a cold drink to me 1 2 3 4 5
I can easily associate with people who consume Pepsi
Cola 1 2 3 4 5
I love talking about Pepsi Cola to others 1 2 3 4 5
I keep a track of all the latest advertisements of Pepsi
Cola 1 2 3 4 5
I am proud to have others know that I love Pepsi Cola 1 2 3 4 5
Pepsi Cola is special to me 1 2 3 4 5
I would be interested to buy merchandise with Pepsi
1 2 3 4 5
Cola name on it
This brand is used by people like me 1 2 3 4 5

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VIII. About Yourself

1. Please specify your gender: Male Female

2. Please tick the age category to which you belong to:

16 – 25 26 – 35 36 – 45 Over 45

3. Monthly Family Income:

Less than 20000 20000 – 30000 30000 – 40000

40000 – 50000 Above 50000

Thanks for your Patience and Support

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