Sri Sharada Institute Of Indian Management -Research

Approved by AICTE
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New Delhi 110070 Website: www.srisiim.org

A
Project Report
ON

(DM:501 CE) BRAND MANAGEMENT

Topic On

Brand Strategy, Equity, Positioning & Architecture of

PEPSICO

Submitted To:Prof. Sanjeev Sareen

Submitted By:Vikram Kumar

(20130159)

Prasanth Kumar (20130132)

Declaration
We hereby declare that the following project
report of Brand Management is an authentic
work done by us. This is to declare that all work
indulged in the completion of this work such as
research, analysis of activities of an organization
is a profound and honest work of ours.

Vikram Kumar

(20130159)

Prasanth Kumar

(20130132)

PGDM : 2013 15
Place : New Delhi

ACKNOWLEDGEMENT
We would like to express my hearty gratitude
to my faculty guide, Prof. Sanjeev Sareen for
giving us the opportunity to prepare a project
report on Brand Strategy, Equity, Positioning
&

Architecture

of

PEPSICO

and

for

his

valuable guidance and sincere cooperation, which

helped us in completing this project.

Vikram Kumar

(20130159)

Prasanth Kumar

(20130132)

PGDM : 2013 15
Place : New Delhi

Pepsi Cola Brand Architecture

PepsiCos brand portfolio is made by hundreds brands in nearly 200 countries around the
globe. PepsiCo is involved in soft drink but also in other product such as snacks. The
firms main brand is Pepsi-Cola, which is well known all over the world thanks to its long
history of 100 years. The company owns other divisions such as Frito-Lay that are
continuing to grow snacks all over the world. Tropicana Products is another division of
PepsiCo which is committed to produce and market fruit juices. Quaker Brands are a wide
range of healthy food choices whereas Gatorade is a division involved in sports nutrition
research. It can be seen that PepsiCos brand portfolio includes plenty of brand but not all
of them are related to soft drink (Bremner, 2006).
Pepsi produces a range of food staffs which are a total of about 20 beverages with Pepsicola and 7Up being a amongst it highest selling brands in the United states common
amongst persons of all ages. Gatorade is now a beverage brand which came about after the
merge of PepsiCo and one of its competitors the name however still remained despite it
being produced by a different company and also in this was Tropicana (Byrnes, 2010). The
other division is that of the food and snacks such as Mirinda, Kurkure; Red Rock including
a number of others all which are distributed all over the world.
A sub brand can allow a master brand with too broad an appeal to access niche segments.
For example, Pepsi with hit huge, broad brand basically hit a wall and needed to create sub
brand around the Pepsi (John, et al. 1998). By this it means that Pepsi as a beverage grew

from the competition from which it received and this prompted it to come up with new
products to counter it. Coming up with sub brands makes it easy to have more identity to
the main by also having a huge range to pick from and increase purchase of its products
(Bremner, 2006).
Examples of companies with strong brands that are wary of brand cannibalization are
Coca-Cola and Pepsi Co. Besides being amongst the top brands, when venturing into other
sectors of the business, they come up with new brands rather using the same names for all.
This way, the business expands on an array of products by having a novel item at all times.
Brand extension this is the way in which a company decides to adopt different market in a
new category other than one that is used often and can be good for the creation of stability
and worth of the company (Bremner, 2006). The above part shows ways in which in
venturing other markets one does not take up the same name but is best to have a different
name.
The companys branding systems has enabled the company to penetrate to different parts of
the world (Keller, & Aaker, 1992). The core similarity between Pepsi and Coca-Cola on
branding lies on the companies deployment of hybrid system in marketing its products
around the globe (The Editor, 2010). However, Pepsi employs unitary mode of brand
architecture where marketing of its products reflects the company image through the
established marketing techniques by the corporate (James, 2006). The fact that the
company has managed to establish a brand system in various countries that it operates
indicates its strength in creating a unified mode of operations identi9fied with the
company. The promote establishment of a harmonizing organizational culture that reflects
structure established in various institutions to propel sale and the entire company to greater
heights.
The hybrid system in the market is one that aims at venturing all markets and getting what
is best in a competitive market. The marketing also involves marketing by having in their
refrigerators only their respective brands of products and in this way maintain a healthy
and competitive environment. Having as many distribution outlets as possible is enough to

create a venture that is more suited to the customers convenience (Humperson, & Quandt,
1980). This also includes the involvement of a strategic advertisement of using different
celebrities in their advertisement as one way that can increasingly change the attitudes of
the consumers the neck to neck competition will be more of the increased profits.

Brand Equity
Analysis of brand recognition study Natasha kashni says that The beverage industry has
been rapidly expanding over the last century, and currently includes avariety of smaller
beverage markets. Functional Beverages have been the newest addition to the beverage
industry and Function Drinks is only one of the major companies operating in this market
segment. The objective of this study is to assess the current level of brand recognition for
Function Drinks among college consumers.
The main focus behind this research is to assist the company increase the level of
consumers brand identification for their company and products through various forms of
marketing, advertising, and promotional strategies. It is in the best interest of the company
to analyze the data collected and offer insight that will not only increase the level of brand
identification, but inadvertently Increase the profitability of their company.
The differental effect of celebrity and expert endorsement on on consumer risk
perception This article focuses on the effects of celebrity and expert endorsements on the
perception of risk on the part of consumers. It is theorized that expert endorsers will have a
stronger effect than celebrity endorsers in reducing a consumer's sense of risk regarding
high technology-oriented items. An interaction effect between the type of endorser and
consumer knowledge on risk perception is expected. This interaction is thought to be
absent for products with a low-technology orientation. Two studies demonstrate these
findings. In a third study, a stronger effect of expert over celebrity endorsers for high
technology-oriented products is somewhat neutralized for certain types of perceived risks
when there is a strong connection between the celebrity endorser and the product.

Study on Impact of Celebrity Endorsements on Brand Image by Debiprasad Mukherjee

2009 says that Celebrity endorsement has been established as one of the most popular
tools of advertising in recent time. It has become a trend and perceived as a winning
formula for product marketing and brand building. It is easy to choose a celebrity but it is
tough to establish a strong association between the product and the endorser. While the
magnitude of the impact of celebrity endorsement remains under the purview of gray
spectacles, this paper is an effort to analyze the impact of celebrity endorsements on
brands.
Objective of this article is to examine the relationship between celebrity endorsements and
brands, and the impact of celebrity endorsement on consumer's buying behavior as well as
how consumer makes brand preferences. This paper proposes a 20 point model which can
be used as blue-print criteria and can be used by brand managers for selecting celebrities
and capitalizing the celebrity resource through 360 degree brand communication which,
according to this paper, is the foundation of the impact of celebrity endorsement. Celebrity
endorsement is always a two-edged sword and it has a number of positives - if properly
matched it can do wonders for the company, and if not it may produce a bad image of the
company and its brand.
The Impact of Celebrity-Product Incongruence on the Effectiveness of Product
Endorsement.:research paper by Lee, Jung-Gyo this study examines how different degrees
of celebrity--product incongruence influence the persuasiveness of celebrity endorsement.
Schema-congruity framework provides the theoretical basis for suggesting that a moderate
mismatch between a celebrity's image and a product's image would produce more
favorable responses to advertisements than either a complete match or an extreme
mismatch. This study also looks at how consumer characteristics, namely an individual's
own levels of enduring involvement with a product category, moderate schema congruity
effects. Two experiments were conducted to test these issues using two types of match-up
factors: physical attractiveness and expertise of a celebrity endorser. The results show that
celebrity endorsements are evaluated more favorably in terms of purchase intention when

there is a moderate mismatch than when there is either a complete match or an extreme
mismatch.

A Study on the Effect of Cause-Related Marketing on the Attitude Towards the Brand: The
Case of Pepsi in Spain. :by Garcia, InakiGibaja, Juan J.Mujika, Alazne Examines the effect
of cause related marketing (CRM) on attitude towards the brand. Effectiveness of CRM in
differentiating brands; Analysis of Pepsi's CRM campaigns in Spain; Factor that would
make CRM campaigns lead to adverse effects.
Simon, Carol J.Sullivan, Mary W. in their research paper of
determinants of brand eqiuity : A financial

The measurement and

in This paper presents a technique for

estimating a firm's brand equity that is based on the financial market value of the firm.
Brand equity is defined as the incremental cash flows which accrue to branded products
over unbranded products. The estimation technique extracts the value of brand equity from
the value of the firm's other assets. This technique is useful for two purposes. First, the
macro approach assigns an objective value to a company's brands and relates this value to
the determinants of brand equity. Second, the micro approach isolates changes in brand
equity at the individual brand level by measuring the response of brand equity to major
marketing decisions. Empirically, we estimate brand equity using the macro approach for a
sample of industries and companies. Then we use the micro approach to trace the brand
equity of CocaCola and Pepsi over three major events in the soft drink industry from 1982
to 1986.
Aurgon 2002 presents information on the top sports endorsers in 2002 compiled by Burns
Sports & Celebrities. Golfer Tiger Woods made $70 million last year from appearances and
endorsements. He is the number 1 endorser in terms of popularity with advertisers and
income earned annually, says Burns President Bob Williams. His past and present
endorsements include American Express, Accenture, Buick, EA Sports, Nike, Rolex, Tag

Heuer, Target, and Titleist. Basketball player Michael Jordan at his peak could pull in $50
million a year in endorsements. Present and past endorsements of Jordan include, Ball Park
Franks, Gatorade, Hanes, McDonald's, MCI WorldCom, Nike and Rayovac. Tennis
trophies have eluded the 22-year-old tennis player Anna Kournikova, but endorsement

deals have not. Her past and present endorsements include Adidas, Berlei's Multiway
sports bra and Xbox. Basketball player Shaquille O'Neal's past and present endorsements
include Burger King, Digex, Electronic Arts, Microsoft, Nestle, Pepsi-Cola, Radio Shack,
Reebok, Spalding, Starter and Taco Bell. Skateboarder Tony Hawk's past and present
endorsements include Activision, Coca-Cola, Diet Mountain Dew, Frito-Lay's Go Snacks,
Gatorade, H.J. Heinz Companies' Bagel Bites and Hot Bites, McDonald's, Pepsi-Cola,
Quiksilver.
WOW! YAO!
Lowry, TomRoberts, Dexter Focuses on Yao Ming, who is going into his third season with
the NBA. The potential of the Houston Rockets center who was born in Shanghai; His
popularity as a spokesman for various products, including Pepsi; How he spent his 24th
birthday with coach Anthony Falsone; Idea that he could influence bilateral trade between
the United States and China; The timing for Yao to promote products in China; His "star
power"; Purpose of the two NBA preseason games against the Sacramento Kings in
Shanghai and Beijing; Concern that Yao could be overexposed; Career highlights with the
NBA; Deals he has made in the United States and China; Managers of the Yao enterprise:
Bill A. Duffy, Bill Sanders, John Huizinga, M. Erik Zhang; The five-year marketing plan
of Team Yao; How the team developed at a business school; Yao Ming's views on his
earning power; Indication that he lives in a gated community in Houston; The agreement
he had to make with China in order to play in the U.S. INSETS: RED STARS
RISING;YAO MING;THE YAO EFFECT.

Pepsis Marketing Strategies

Pepsis approach is radically different from that of Coke; Pepsi has gone in for
concentration segmentation. Pepsi has targeted the youth segment instead of trying to be
something to all segments.Pepsi has since beginning strove to achieve its international
position as `a drink for the new generation in India. Helped by HTAs forceful visuals and
creative, Pepsi has been successful in positioning itself for the younger generation.
Selling Process
Pepsi has a very well managed selling system. It takes as lot of care to ensure that
the products (Pepsi bottles) are available to the consumers. Pepsi soft drinks are produced
in our plant in different SKUs (Stock keeping units) and distributed to our distributor and
they further supply to the retailer. Sahibabad (GZB) has been divided around 14 routes
which are called direct routes. For every route there is a Routs Agent. Route Agent moves
with the company owned truck and ensure that maximum shops are covered each day, so
that regular supply of Pepsi soft drinks is made. Routs agents take the order from the

shopkeepers and then with the help of loaders they give the required number of crates to
the retailer or shopkeeper & then move to next.Our plants also have some agency in each
rout. They supply in the areas where Pepsis trucks are not able to reach. These areas are
called indirect-routes.

Pepsi Targeting & Positioning

Targeting:
Pepsi has historically targeted a young audience especially since the 1980s .Many of their
ads were usually aimed at teenagers and even younger groups by introducing fun, sports
and music in their ads. But ,Pepsi also attracts other age groups not only teens .
Positioning:
Firstly the Pepsi in America try to position its product for the society as whole and for the
purpose of refreshment, which can be clearly visible from their advertisement slogans like any whether is Pepsi whether the light refreshment be sociable, have a Pepsi
This positioning strategy they followed up to 1960 and after analyzing that it is very
difficult to capture whole population as whole. So Pepsi after 1960 started targeted
marketing and choose a different way to promote and to attract new customers by using
huge marketing campaigns along the years and creating brand personality associated to the
adventure.Pepsis goal is Attract a certain set of customers to buy the product by
associating itself with young people who are energetic, fun loving and daring.

In 2012, Mr. Jakeman (president-global enjoyment

and chief creative officer) said, Coke represents
happiness and moments of joy, while it protects
culture and maintains the status quo. Pepsi, on
the other hand, creates culture and embraces
individuality. For Pepsi loyalists, leading an
exciting life is much more important than leading a happy one, Mr. Jakeman said.
Those insights led Pepsi to embrace a brand positioning to "capture the excitement of
now," and the campaign that has been developed carries the tagline, "Live for Now." It's
already proved a potent rallying cry.
News of the "Live for Now" campaign began to spread last week, and the first spot,
featuring a cameo from performer Nicki Minaj, is set to be released May 7. Pepsi Pulse, a
company-curated "dashboard of pop culture" ranking tweets, photos and news items from
the entertainment world, has replaced Pepsi.com. There's already a feeling among those
close to the brand that something big is happening.
The positioning and campaign indicates a change, as Pepsi recaptures leading consumers
rather than trying to put up with trends, according to Ms. Warrier. "We will need to invest
in capability, in foresights and dynamic trend-spotting, design and creating social
communities," she said."The new positioning injects new energy into not only the brand
but the people who work on it," giving them a license to experiment with "exciting new
initiatives," said Richard Lee, CMO-PepsiCo China. "Who doesn't want to work on a brand
that promises to capture the excitement of now?"

Pepsis Brand positioning has finally always been as a refreshing cola drink for the youth,
ubiquitous on just about every social occasion. The positioning has remained same since its
inception in 1898. "The brand positioning was prompted primarily by the market segments
largely untapped by coca cola (young generation) and its sweet sugary taste suited for its
young consumers", Keller said. Thus it was able to create a Point of difference from Coca
cola.

Conclusion
After analyzing the fact we came to the conclusion that PEPSI is growing day by
day. This conclusion is based on overall information collected from various distributors,
retailers, markets and consumers. They are having an edge over other soft drink producer
in the market. They are doing very good in the current scenario, but they need some object
oriented and bit dynamism in the strategy in the outskirt.
The company just needs to reform its rules, create more global awareness, change its
policies in favour of more opportunities & encourage its major players to invest in the
companies.
However, the company, if concentrates on the following factors will be able to face
tough challenges:
Technology
Quality
Brand competition
Price competition
Good balance between production and sales
Different preferences for products by different age groups
R & D capacity
Distribution Network
Pre-Sales services
After-sales services
Thus the company has an upcoming bright future in the future years.

Bibliography

Sites Visited
www.google.com
www.pepsico.com
www.domain-b.com
www.yhaoo.com

Books Referred
Marketing Management by Kotler, Killer, Koushik and Jha
Marketing Management by Piter Dacken
Marketing Strategy Magazine
Marketing management Magazine
C. R. Khothari