Marketing of PEPSI cola

GROWTH STRATEGY

Pepsi is using market niche strategy in order to gain more market shares.

PEPSI’S INTENSIVE GROWTH STRATEGY

Plans to increase advertising and marketing support behind its global brands by $500-$600 million in 2012.Particularly they have focused on North America. Multi-year productivity program expected to generate $1.5 billion of incremental cost savings by 2014 through optimization of operating practices and organization structure, including a reduction in force of about 8,700 employees, about 3 percent of global workforce. Company targets high-single-digit core constant currency* EPS growth for 2013 and beyond after a transition year in 2012, in which it expects core constant currency EPS to decrease by 5%.Announces plan to increase returns to shareholders in the form of higher dividends and share repurchases in 2012.

INTEGRATIVE GROWTH STRATEGY

Ensure Sustainable, Profitable Growth in Global Beverages. When combined with the actions i are taking to refresh their brands across the entire beverage category, they believe this game-changing transaction will enable them to accelerate their top-line growth and also improve their profitability. They continue to see significant areas of global beverage growth, particularly in developing markets and in evolving categories. They will invest in those attractive opportunities, concentrating in geographies and categories in which they are the leader or a close second, or where the competitive game remains wide open.

TARGET MARKET

Pepsi customers are mostly the young group between the age of 5 and 45. They have targeted schools, colleges, universities, homes, restaurants, hotels and stores.

POSITIONING STRATEGY

Mission of Pepsi is reaching to the last consumer and leaving name in their minds. Pepsi uses the positioning strategy which is related to the competitor because it consider that it is market leader and it try to present its products quite different In taste, packaging, styles, designing and quality than its competitors such as Coca-Cola, Pepsi follows the quality positioning strategy.

MAJOR COMPETITORS

The two players fighting for the top spot in the carbonated beverage industry are Pepsi and Coca-Cola. They show a true example of competition. Coke has a big lead in cola market share over Pepsi, but Pepsi’s multiple business lines haul in more cash. in Pakistan if i look at the shares the Pepsi is about 65 - 70% while Coke is about 25-28% in Pakistan Beverage Market Survey.

RESEARCH FINDINGS

Research findings shows that the youngsters lying between 16-25yrs age group prefers Pepsi. But their always lie a competition between Pepsi and Coke despite the low prices of Pepsi. Pepsi is preferred due to its quality, discount offers and celebrity appearances in their commercials. If the drink is still in the can, it should be pretty easy to tell the difference. The coke can is red and says "Coca-Cola" on it and the Pepsi can is blue and says "Pepsi" on it. Coke is more "fizzy" than Pepsi. Although you probably couldn't tell just by looking at the bubbles, you can also taste them to see .Coke changes flavor with time becoming watery and bitter.

 Pepsi strengthens

HAVE YOU EVER TASTED?

WHICH PRODUCT DO YOU PREFER?

WHY DO YOU PREFER THIS PRODUCT?

HOW OFTEN DO YOU USE THIS PRODUCT?

WHAT LEVEL OF SATISFACTION YOU HAVE FROM THIS PRODUCT?

Whose ADVERTISEMENT IS BETTER?

Whose RPODUCT PACKAGING IS BETTER?

Pepsi seem stronger in all the contributed parts than coke.

Pepsi has more brands than coke and covers higher media than coke.

Pepsi cola advertise almost all brands while Coca-Cola mainly advertise only one brand i.e. coca cola.

Pepsi market share is evidenced 70% which is the strongest point of Pepsi.

POINT OF DIFFERENCE (POD)
POINT OF PERITY (POP)

POD:

 Pepsi's POD is their forward thinking attitude. i don't believe any of the other cola brands (including Coke) are very strong in that area. This falls into image differentiation.

Pepsi has the image of being action oriented and i think that a large part of their target audience associate themselves with the brand because of that image.

Creative CAMPAIGN RUN

Abeyance and Pepsi has taken the ultimate trip down memory lane, only to realize the excitement of the moment is NOW in a new global advertising campaign unveiled today via 180 LA. 

The creative collaboration, mutually developed by Abeyance and Pepsi Ranbir Kapoor, Priyanka Chopra and MS Dhoni seize the moment and do what they want in the spot entitled "Jeena Hai Abhi”.

CREATIVE BRIEF

It has been around for a long time and has enhanced it's image and logo to suit the different generations. Pepsi has sponsored many events that are currently taking place. For example every summer Pepsi sponsors a huge concert and since it is a big sponsor the concert is called "The Pepsi summer bash". This brand uses image creativity (shown in the photo above). They have changed their logo to rejuvenate their image and to have a better appeal. These new, fresh and fun designs appeal to many people who are trying to satisfy their thirst. Pepsi uses commercials, billboards, magazine ads, and many other forms of advertising to bring attention to their product. Pepsi even uses celebrities to endorse their product. I believe that Pepsi will continue to have a lasting effect on people who are looking to quench their thirst.

TAG LINES

      The tag lines are:

“ho jao abhi ke liye crazy!”

“oh yes abhi”

“jeena hai abhi”

.PRICING STRATEGY

In our society Pepsi has reduced its prices in holy month of Ramadan, Easter and at eid. In this way they have adapt promotional pricing strategy. Even if you notice on their offering they are use product line strategy as they are offering different quantity with different price.

In different sectors Pepsi has also adapted segment pricing strategy as its price is much higher in luxurious hotels and other sectors.

Its major competitors is Coca-Cola ,and they has made various efforts through different pricing strategy and offering, but Pepsi have responded effectively through different price cuts at the right time.

Pepsi have always operated sales through promotional and psychological pricing strategy and the great example of this can be the recently offered deal which 2.25 liter of Pepsi in 60 rupees.

DISTRIBUTION CHANNELS

In order to connect with customers and satisfy their needs , Pepsi distribution channel Decisions  strives to make the products available in customers’ popular shopping areas. The marketing approach of dealing with different types of distribution channels from retailers to wholesalers was based on the management strategy to implement  the right network distribution with regard to the nature of the product .The key accounts are different wholesalers, restaurants and hotels like Pizza Hut, KFC, Metro which serve as a place for key sale. Pepsi have exclusive contracts with franchise bottlers ,independent/online distributors and retailers(Tesco, Walmart)too .Pepsi have also refrigerated vending machines at various locations and workplaces. Service the right pack size at the right price, in the right place at the right time.