Assignment: Marketing

Company Project: Pepsi

Made By: Abdul Basit

Institution: GC University Faisalabad,

(This project is practically guideline for

Bs hons,M.com,Mba Students.I worked hard for this project which tells almost all marketing by Kotler chapter wise.Reserch can done on internet about marketing but applied questions into project are very practically written, you will not be able to seek out like this document.

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Company History:

Pepsi cola started in the January 1898, from a small Drug store

in the city of North Carolina. The owner of the Drug store, Mr.

Caleb Bradham, prepared a drink, which the customers called

"the Bred Drink". Bred registered this drink with the name of

Pepsi Cola in 1903. Then he started his own production at Marco

level and established his own company. The business expanded

and this drink got fame time. In 1909 this company reached to 24

states of America with more than 250 dealers. The very first

packing of Pepsi was in 16.5 ounce.

The word Pepsi comes from the Greek word "pepsi" (πέψη),

which is a medical term, describing the food dissolving process

within one's stomach. It is also a medical term that describes a

problem with one's stomach to dissolve foods properly.

As Pepsi was initially intended to cure stomach pains, many

believe Bradham coined the name Pepsi from either the

condition dyspepsia (Greek: δυσπεψία, stomach ache or

indigestion) or the possible one-time use of pepsin root as an

ingredient (often used to treat upset stomachs). It was made of

carbonated water, sugar, vanilla, rare oils, and kola nuts.

Whether the original recipe included the enzyme pepsin is

disputed.

In 1903, Bradham moved the bottling of Pepsi-Cola from his

drugstore into a rented warehouse. That year, Bradham sold

7,968 gallons of syrup. The next year, Pepsi was sold in six-

ounce bottles and sales increased to 19,848 gallons. In 1924,

Pepsi received its first logo redesign since the original design of

1905. In 1926, the logo was changed again. In 1929, automobile

race pioneer Barney Old-field endorsed Pepsi-Cola in newspaper

ads as "A bully drink...refreshing, invigorating, a fine bracer

before a race".

In 1932 Pepsi cola has introduced its new packing in 12 ounce.

In 1950 Pepsi Cola has started its new Advertising Campaign

with the name of "Refresh without Filling". It also changed the

chemical formula and decreased its sweetness and calories.

With the efforts of the Sales & Marketing Department, Pepsi got

so much fame that it established new plants at a rate of thirty

per annum. In 1985 the design of the bottle has been changed

after 20 years. And a new and attractive packaging has been

offered with two new flavors i.e., Teem & Mininda.

Today Pepsi is available in more than 155 countries of the world

including Soviet Union & China.

Pepsi Cola International:

Pepsi Cola International (PCI) Company includes in beverages

industry. PCI is well-reputed multinational organization, which is

doing its business in almost every part of the world. The

company is registered in New York stock exchange U.S.A to

make a better control over the business. PCI has given the

manufacturing rights to different local companies that are called

as franchises.

Table1.Slogans/Logos of Pepsi through different period of times

1898 Brad's Drink

1903 Exhilarating, Invigorating, Aids Digestion

1906 Original Pure Food Drink1908 Delicious and Healthful1915 For All Thirsts - Pepsi: Cola1919 Pepsi: Cola - It makes you Scintillate1920 Drink Pepsi: Cola - It Will Satisfy You1928 Peps You Up!1929 Here's Health!1932 Sparkling, Delicious1933 It's the Best Cola Drink1934 Double Size

Refreshing and Healthful1938 Join the Swing to Pepsi1939 Twice as Much for a Nickel

 

1943 Bigger Drink, Better Taste

1947 It's a Great American Custom1949 Why Take Less When Pepsi's Best?

 

1950 More Bounce to the Ounce1954 The Light Refreshment

Refreshing Without Filling1958 Be Sociable, Have a Pepsi1961 Now It's Pepsi for Those Who Think

Young

  

1963 Come Alive!  You're in the Pepsi Generation

1967 Taste that Beats the Others Cold, Pepsi Pours It On.

1969 You've Got a Lot to Live, Pepsi's Got a Lot to Give

1973 Join the Pepsi People Feelin' Free1976 Have a Pepsi Day!1979 Catch That Pepsi Spirit

Take the Pepsi Challenge1981 Pepsi's Got Your Taste for Life1983 Pepsi Now!

1984 The Choice of a New Generation1987 America's Choice1989 A Generation Ahead

  

1992 Gotta Have It1993 Be Young, Have Fun, Drink Pepsi1995 Nothing Else is a Pepsi1997 Generation Next

 

1998 Same Great Taste

1999 The Joy of Cola2000 The Joy of Pepsi

2003 Pepsi.  It's the Cola

2005 Dare for more"Wild Thing"/"Ask For More"

2011 /2012

"More Happy"/"Taste the one that's forever young

Core Brands:

Carbonated Soft drinks, Energy drinks, Juice drinks, Drink coffees and Tea, Sports drinks, Water.

Brand Names:

Aquafina

Lipton Brisk

Mtn Dew

Mug

Pepsi

Mirinda

Tropicana Twister soda

Products:

Pepsi,Dew,Dole juice,Aquafina,Lipton,Tazo,Naked,G2 (sports drink),AMPEnergy,Lays,Teem,Kurkure,String Drink,Looza(juice),Sierr Mist,Latle,Propel zero, Mist Natural

Packaging:

Pepsi Cola uses glass cans and plastic bottles of different quantity.

Packaging:

Pepsi 1.5 Liter

Pepsi 2.25 Liter

Regular Pepsi 250 ml

Pepsi Can or Tin 300 ml

Pepsi Current Labling:

Logo is the identity of Pepsi.

Product Support Services:

Pepsi cares his customers always. For customer help, information and feedback of its products improvement Pepsi Website, email, contact numbers are supported to them.

Products Mix:

Product Names

Product Lines Length Depth

Pepsi Diet Pepsi,Diet Pepsi lime,Diet Pepsi vanilla,Pepsi, Diet Pepsi Wild cherry,Pepsi MAX,Pepsi NEXT,Pepsi twist

7 Pepsi Diet (5)

Pepsi Max(3)

Pepsi Regular (5)

Pepsi Twist(3)

Mirinda Mirinda Orange,MirindaApple

2 Mirinda Orange (1)Mirinda Apple (2)

Mtn Dew Diet Mtn Dew,Mtn Dew,Mtn Dew Live Wire,Mtn Dew code Red,Mtn Dew Dark Berry,Mtn Dew White

5 5

out,Mtn Dew Voltage,

Mug Diet Mug Cream Soda,Mug cream Soda,Diet Mug Cream,

3 Diet Mug Cream Soda(1)Mug Cream Soda(2)

Tropicana Twister Soda

Tropicana Twister Soda Diet Orange, Tropicana Twister Soda Grape, Tropicana Twister Soda Orange, Tropicana Twister Soda Strawberry

4 5

Lipton Lipton Brisk,Pure leaf,

2 4

Aquafina Aquafina Flavor Spash, Aquafina

2 Aquafina (2)Aquafina Flavor Spash(1)

Dole Juice Dole Juice, Dole Juice Sensation

2 3

7UP 7up Regular7up Diet

2 7up Regular (5)7up Diet (3)

Pepsi Products Width:

Width means number of products lines in product mix.

Pepsi Product lines are nine and they are subdivided by individually.

Pepsi Segmentation and Target Market

Segmentation Variables Data

Geographic:World region Asia,Europe,Usa

Countries Pakistan and more than 155 countries

Cities All major citiesDensity UrbanClimate Hot and dry

Demographic:Age 5-45Gender Male and femaleFamily life cycle 1-2,3-4,5+Income Rs.10000+Occupation Professionals,Students,House holdsEducation Schools,Collages,UniversitiesReligion Major religion of Islam, Christianity

and Hinduism and small percentage of others

Nationality Pakistani,South American, North American and others

Psychographic:Social Class Middle class, Upper class.

Life Style Believers, Achievers, Strivers, Experience’s makers and Strugglers

Behavioral:Occasions Parties, Birthdays, Sports and

Regular Occasions

Benefits Quality, Taste

User status First time user, regular user

Loyalty Status Strong

Readiness Aware, Interested

Target Market:Pepsi customers are mostly young group between the ages of 5 to 45 and also target at School, Collages, Universities, Homes, Restaurant, Hotel and Stores.

Positioning Strategy:

The mission of Pepsi is towards reaching to the last consumer and leaving name in their minds.Positioning In Relation To A Competitor And Quality Pepsi uses the positioning strategy which is related to the competitor because it consider that it is market leader and it tryto present its products quite different in taste,packaging,styles designing and quality than its competitors such as coca cola etc.Pepsi follow the quality positioning strategy.

Marketing Mix:

1.Product, 2.Price, 3.Place,4.Promotion

1.Product:

According to products and service types, Pepsi contains Convenience food and soft drink products.

Pepsi Product Attributes :

Pepsi is available in a bottle,can,paper glass.Pepsi products are delicious and sweet and the packaging is comfortable to hold.Pepsi helps quench our thirst and cools us off.Drinking Pepsi shows that I am cool and I have made a popular choice.

2.Price:

Following factors Pepsi kept in mind while determining the

pricing strategy.

1) Price should be set according to the product demand of

public.

2) Price should be that which gives the company maximum

revenue.

3) Price should not be too low or too high than the price

competitor is charging

from their customers otherwise nobody will buy your product.

4) Price must be keeping the view of your target market.

5) Pepsi focuses on allowance and discountable price.

3.Place (distribution channels)

Pepsi uses the following ways for distribution

Of its products.Direct distribution:

The key accounts are different wholesalers, restaurants and hotels like Pizza Hut, KFC, Metro serve as a place for key sale.These are known as national key accounts are very important in terms of completion.

Export partiesIndirect distribution:

Through Base market distributors Through Outstation distributors

4.Promotion:

Pepsi promotes its products through these ways: TV Newspapers Billboards Internet Radio

Pepsi Product Life Cycle:

Introduction Level:

Pepsi introduces its new products and place it on the market for consumers.Pepsi also spends a lot of money advertising the new flavor creating awareness.

Growth Level:

Customers like the flavor and begin to make routine purchases and competitor Coke introduces their competing products and flavor.

Maturity Level:

More competitors enter the market taking some of Pepsi’s profits.For example Tropicana juice is at maturity level now.

Decline Level:

Customers have moved on to the next new products and flavors.But some loyal fans stay behind.

Buildiing customer value,satisfaction, and loyalty:

Today Pepsi is the more successful brand in the world,the reason behind it is that Pepsi Co. always believe in building customer value. Pepsi know that “customer is the king” andShall continue to be so. Creating loyal customers is the heartOf Pepsi Co’s business.

Pepsi dIfferent Products line Promises:

Marketing Srategy Of Pepsi:

Pepsi corporate strategy is to concentrate their resources on growing beverages snack foods and fast food restaurants businesses, through internal growth of each divisions and carefully analyze different companies which are favorable for acquisition.

Pepsi New Product Development:

Pepsi has developed new products like natural fruits juice and partnership with Starbuck and Unilever Lipton to produce coffee and tea. They developed also Sports drinks and Mineral water.

Pricing Strategies:

Pepsi uses market penetrating strategy. Pepsi tries to increase market share. Pepsi is available in Pakistan almost all cities.

Product Mix Pricing Strategy:

Pepsi uses Bundle pricing strategy like in Ramadan and Eid occasions and on Other months Pepsi sets product line prices against its Competitors. Pepsi tries to announce promotional prices so that customers can more buy.

Pepsi Advertising Objective:

Pepsi uses Reminder advertising objective because Pepsi ads primarily build and maintain the Pepsi Co brand relationship rather than inform or persuade customers to buy in the short run.

Pepsi Budget:

Pepsi advertising budget for advertising soft drinks used to be on par with that of Coca Cola till about 5 years back, but last year Pepsi spent only $153 million on soda ads, while the competitive party Coca Cola’s spent $ 253 million.

Developing Advertising Strategy:

Advertising strategy consists of two major elements: creating advertising messages and selecting advertising media.

Message Stretegy;

Company created big idea with advertising purpose like thatPepsi made the program is aimed at identifying the Cricket Talent in the Pakistani Youth and would help in developing skilled Cricketers at grassroots level. They made statement “Auo badal du zamana”.Advertising Appeal:

Pepsi advertising appeal is believable, convincible and meaning full like”Dil ha tu mangu aur” and its different from others.

Execution Styles:

Slice of Life:Pepsi according to this style shows how a product fits in with a particular life styles.

Life Style:

Pepsi life style people who uses it middle and upper class and believers, achievers, strivers.

Fantasy;

Pepsi mostly uses fantasy advertising like String energy ads show fantasy.

Personality;

Pepsi started advertising with different Pakistani Cricket stars like Waseem Akrim,Shahid Afridi and others countries actorsTo enhance their consumptions.

Musical;

Pepsi uses on some bottles cartoons and music to attract customers.