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FatemaTuzZzohora,StudentatDaffodilInternationalUniversity
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Marketingstrategyofpepsiassaignment
1.1.Assignmenttopic:AmarketingplanforPepsi.Submittedby:NameIDNilufaEasminNila13311612.
MahaBubaAkterNitu.13311664.Md.ArifulAlam13311630.FatemaTuzZzohora13311618.
Program:BBA.Coursename:PrinciplesofMarketing.Coursecode:MKT101.Submittedto:Md.Safayet
Mansoor.(LecturerofBBAdepartment).SubmissionDate:18.08.2014.
2.2.LetteroftransmittalToMD.SafayetMansoor.LecturerofBBAdepartment.DaffodilInternational
UniversitySubject:Submissionofreport.DearSir,Itisgreatandimmensepleasureforusthatwehave
theopportunitytosubmitthereportonAmarketingplanforPepsi.AspartofourBBAcourse
requirement,wehavepreparedthisreportonthebasisoftheknowledgewegatheredfromourknowledge
andweliketoexpressoursinceregratitudetoyouforyourcontinuoussupportandguidance.Wehave
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concentratedourbesteffortstoachievetheobjectivesofthestudyandhopethatourendeavorwillserve
thepurpose.However,wewillalwaysbereadytoprovideanyfurtherclarificationthatyoumayrequire.
SincerelyyoursNameIDNilufaEasminNila13311612MahaBubaAkterNitu.13311664Md.Ariful
Alam13311630FatemaTuzZzohora13311618
3.3.Acknowledgement:WewouldliketothankthePepsiCocompanyaswemadeareportononeoftheir
product,allthosewebsitesfromwherewecollectinformationaboutPepsi,ourteammemberanda
specialthankstoourrespectiveteacherMD.SafayetMansoorforgivingusthisopportunitytorepresent
ourideaandforgivingustherightdirection,motivationandforhelpingustocompleteourreport.
ExecutiveSummary:ThisreportprovidesananalysisandevaluationoftheMarketingStrategyforPepsi.
MethodsofanalysisincludeMarketSegmentation,MarketTargeting,andMarketPositioningofPepsi.
IntothisanalysiswehavetriedtoshowhowPepsisegmenttheirmarketbasingondifferentvariables.
Theirtargetmarketwhichtheyserve.WealsodiscussaboutPepsisinternalandexternal
environment.TheirPositioninthemarketandhowdotheydifferentiatethemselvestomakeapositionin
theircustomermind,theirstrategyofpositioninginmarketwetriedtogiveapositioningstatementof
Pepsiandendedthewholereportwithaconclusionandarecommendation.
4.4.Tableofcontent:NumberTopicname1Letteroftransmittal2Acknowledgement3Executive
summary4Tableofcontent5Productoverview6Creatingandcapturingcustomervalue7Analyzingthe
marketingenvironment8Segmenting,targeting,positioning9Brandstrategies10Distribution
management11Integratedmarketingcommunication12Recommendation13Conclusion14
Bibliography15Appendix
5.5.Productoverview:PepsiisacarbonatedsoftdrinkthatisproducedandmanufacturedbyPepsiCo.
Pepsiwasfirstintroducedas"Brad'sDrink"inNewBern,NorthCarolina,UnitedStates,in1893by
CalebBradham,whomadeitathisdrugstorewherethedrinkwassold.ItwaslaterlabeledPepsiCola,
namedafterthedigestiveenzymepepsinandkolanutsusedintherecipe.Createdanddevelopedin1893
andintroducedasBrad'sDrink,itwasrenamedasPepsiColaonAugust28,1898,thentoPepsiin1961,
andinselectareasofNorthAmerica,"PepsiColaMadewithRealSugar"asof2014.
6.6.CapturingCustomerValue:MarketingMyopia:Myopiaisarefractivedefectoftheeyeinwhichlight
producesimagefocusinfrontoftheretinawhenthesightadjustmentisoffbalance.InthecaseofPepsi,
itonlyfocusesonthedemandoftheproductandtrytoimproveit.Butitdoesntfocusontheother
demandofconsumers.ValuePropositionofPepsi:PepsifollowswinningvaluepropositionslikeMore
forless,ThesameforlessorMoreforthesame.Pepsihasitsproductsfromlowpricetohighprice.
Itdependsonthequantity.Wheretheir250mlbottleisalmost20tkontheotherhandtheir2mlpetbottle
isalmost90tk.Theyaregivingtheirproductinaveryreasonablepriceandindifferentorientationsso
thattheirtargetcustomerscanaffordtohaveit.IneveryoccasionPepsibringsspecialoffers.Like,they
reducethepricegiveextraquantityofdrinksinthesamepricethustheyfollowthethreewinningvalue
proposition.Itdependsonmarketsituationandcompetitorthatwhatstrategytheywillfollow.4Ps:
Product:Aproduct(inPepsi'scase,apopularsodadrinkwithcolaflavoring)mustappealtothe
marketplaceanddelivertastetoconsumers.
7.7. Price:Thesecondelement,price,isallaboutofferingaproductforanappealingpriceonethatstill
allowsPepsiCotomakeatidyprofitfromthesaleoftheirdrinks. Place:Thethirdelement,place,is
aboutdistributionofsodadrinks.Drinksmaybesoldinmasschainstores,suchasWalMart,andinan
arrayofotherretailstores,suchasdrugstores,grocerystores,andcornerstoresorbodegas.Distribution
isthekeytogettingtheproductinfrontofconsumers,soplaceisaveryimportantpartoftheoverallsales
equation. Promotion:Promotionincludesthemarketingandadvertisingofaproduct.Inthecaseof
Pepsi,marketingisinternationalandtakesplaceineveryformofmassmediaincludingtelevisionads,
printads,andonlinemarketing.MarketingStrategy: SelectingCustomerstoserve:Marketing
Segmentation:Pepsisegmentsitsmarketinseveralways.Pepsi,mainlysegmenttheirmarket
demographicallyassumingage,incomeandfamilysize.Pepsisbehavioralsegmentationhasbeenakey
tothecompanyssuccess.AgeisoneofthemostsignificantpartsofthesegmentationofPepsi.Pepsi
introducesPepsidietforthepeoplewhoaresufferingfromdiabeticandforthosewhoarelikelytoavoid
sugarandfortheaged
8.8.peoplespecially40plus.PepsimainlyproducesthePepsicolathemaincustomerofPepsicolais
youngpeoplewhoseageis10to35.OnincomebasisPepsialsosegmenttheirmarketbymakinglittle
pack.Theyofferacompetitivepricerangetoallclassofpeople.Theyconsidertheeconomicsituationin
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ourcountry.SotheyintroducePepsiindifferentpricefordifferentthepeoplewhoseincomeisdifferent.
Theythinkaboutstudent,poorpeople,andmiddleclasspeopleeconomicconditionfortheirpricing.
FamilysizebasisisalsoabasesegmentationforPepsi.Inoursociety,therearemanyfamilieswith
differentfamilysize.SoPepsiisservedintomanysize250ml,500ml,1L,1.5L,2Lpack.Peoplecan
easilychooseasuitablepackbasedontheirfamilysize.TargetMarketing:ThereasonwhyPepsiColahas
fiercelytargetedthismarketisbecauseitisthelargestamongitsusers.Marketsegmentprofileshave
shownthatthemajorityofcarbonatedbeveragedrinkersareyouthandmiddleagepeople.Pepsi
continuallytargetstheSchools,Colleges,Universities,restaurants,hotels,andfastfoodStores.Forthis
theyalwaysspendhugeamountsofmoneytocompetewithCocaColainacquiringcontractswith
universitiestohavesoldrepresentationoftheirproductdistribution.Pepsicustomersaremostlyteenagers
andyoungadultsbetweentheagesof14to29. MarketingManagementOrientation:Production
concept:PepsialwaysfollowsProductionconcept.Theyalwaysmorefocusmoreonquantitybutless
focusonquality.Theyproduceahugeamountofproduct,Sothatthecostoftheproductiondecreases.
9.9.AmountofproductLowerProductioncostHigherMarketingConcept:Pepsifollowsmarketing
concept.Theyalwayshighlighttheirtargetmarketsneedsandmakesurethattheproductisavailableand
highlyaffordableforthem.
10.10.AnalyzingtheMarketingEnvironment:MicroenvironmentforPepsi:Thecompany:PepsiCoisthe
companywhichproducesPepsi.Suppliers:ABDULMONEMSUGARREFINERYLTD,IGLOO
BOTTLERSGRADESUGAR.Tanvirs(PEPSICOLACANSSPEAKER),PartexPlasticsLtd.
(PLASTICCLOSURES)MarketingIntermediaries:AkinEnterprise,BANGLADESH.ANSiiComputers,
BANGLADESH.Customers:Pepsicustomersaremostlyyounggroupbetweentheagesof14to30.
Competitors:CocaCola,RCCola,RedBulletcarethecompetitorsofPepsi.Macroenvironmentfor
Pepsi:DemographicEnvironment:Inthedemographicenvironment,marketersmustbeawareof
worldwidepopulationgrowthchangingmixesofageethniccomposition,andeducationallevelstherise
ofnontraditionalfamilieslargegeographicshiftsinpopulationandthemovetomicromarketingand
awayfrommassmarketing.theworldpopulationisshowing"explosive"growth,totaling6.1billionin
2000andwillexceed7.9billionbyyear2025.Agrowingpopulationdoesnotmeangrowingmarkets
unlessthesemarketshavesufficientpurchasingpower.Nonetheless,companiesthatcarefullyanalyze
theirmarketscanfindmajoropportunities.Countriesalsovaryinethnicandracialmakeup.Atone
extremeisJapan,wherealmosteveryoneisJapaneseattheotheristheUnitedStates,wherepeoplefrom
comevirtuallyallnations.Eachgrouphascertainspecificwantsandbuyinghabits.Severalfood,
clothing,andfurniturecompanieshavedirectedtheir
11.11.productsandpromotionstooneormoreofthesegroups.Pepsiistheproductwhichmakesabalance
demographicenvironment.EconomicEnvironment:Marketsrequirepurchasingpoweraswellaspeople.
Theavailablepurchasingpowerinaneconomydependsoncurrentincome,prices,savings,debt,and
creditavailability.Marketersmustpaycloseattentiontomajortrendsinincomeandconsumerspending
patterns.Marketersoftendistinguishcountrieswithfivedifferentincomedistributionpatterns:(1)very
lowincomes(2)mostlylowincomes(3)verylow,veryhighincomes(4)low,medium,highincomes
and(5)mostlymediumincomes.Marketersmustpaycarefulattentiontomajorchangesinincomes,cost
ofliving,interestrates,savings,andborrowingpatternsbecausetheyhaveastrongimpactonbusiness
andPepsiCoisalwaysawareofeconomicenvironmentforPepsi.NaturalEnvironment:Inthenatural
environment,marketersneedtobeawareofrawmaterialsshortages,increasedenergycostsandpollution
levels,andthechangingroleofgovernmentsinenvironmentalprotection.Theearth'srawmaterials
consistoftheinfinite,thefiniterenewable,andthefinitenonrenewable.Infiniteresources,suchasairand
water,arebecomingaproblemsuchaswatershortages.Finiterenewableresources,suchasforestsand
food,mustbeusedwisely.Forestrycompaniesarerequiredtoreforesttimberlandsinordertoprotectthe
soilandtoensuresufficientwoodtomeetfuturedemand.Finitenonrenewableresourcesoil,coal,
platinum,zincandsilverwillposeaseriousproblemasthepointofdepletionapproaches.Dramaticrise
inoilpricescanalsocreatearenewedsearchforalternativeenergyforms.Someindustrialactivitywill
inevitablydamagethenaturalenvironment.About42percentofU.S.consumersarewillingtopayhigher
pricesfor"green"products.Thiscreatesalargemarketforpollutioncontrolsolutions,suchasscrubbers,
recyclingcenters,andlandfillsystems.Governmentsvaryin
12.12.theirconcernandeffortstopromoteacleanenvironment.Manypoornationsaredoinglittleabout
pollution,largelybecausetheylackthefundsorthepoliticalwill.Richernationsareabletohelpthe
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poorernationscontroltheirpollution,buteventherichernationstodaylackthenecessaryfunds.For
PepsiCola,thepackagingofPepsiiscloselyrelatedtothenaturalenvironment.Sotheyalwaystryto
makethepackagingofPepsiinrecyclingformat.TechnologicalEnvironment:Thisisoneofthemost
dramaticforcesshapingpeople'slives.Theeconomy'sgrowthrateisaffectedbyhowmanymajornew
technologiesarediscovered.Newtechnologyalsocreatesmajorlongrunconsequencesthatarenot
alwaysforeseeable.Therefore,themarketershouldmonitorthefollowingtrendsintechnology:thepace
ofchange,theopportunitiesforinnovationandincreasedregulation.Manyoftoday'scommonproducts
werenotavailable40yearsago.Anincreasingnumberofideasarebeingworkedonandthetimebetween
theappearanceofnewideasandtheirsuccessfulimplementationisallbutdisappearing.Soisthetime
betweenintroductionandpeakproduction.90%ofallthescientistswhoeverlivedisalivetodayand
technologyfeedsuponitself.Scientisttodayisworkingonastartlingrangeofnewtechnologiesthatwill
revolutionizeproductsandproductionprocesses.Someofthemostexcitingworkisbeingdonein
biotechnology,computersandtelecommunications.Manycompaniesarecontenttoputtheirmoneyinto
copyingcompetitors'productsandmakingminorfeatureandstyleimprovements.Asproductsbecome
morecomplex,thepublicneedstobeassuredoftheirsafety.Consequently,governmentagencies'powers
toinvestigateandbanpotentiallyunsafeproductshavebeenexpanded.Howevertheirinnovationlevelis
notsohighbutPepsiCoalwaystrytomakenewinnovationinPepsi.PoliticalLegalEnvironment:
Marketersmustworkwithinthemanylawsregulatingbusinesspracticesandwithvariousspecialinterest
13.13.groups.Businesslegislationhasthreemainpurposes:toprotectcompaniesfromunfaircompetition,to
protectconsumersfromunfairbusinesspracticesandtoprotecttheinterestsofsocietyfromunbridled
businessbehavior.Thelawsarenotalwaysadministeredfairlyregulatorsandenforcersmaybelaxor
overzealous.Marketersmusthaveagoodworkingknowledgeofthemajorlawprotectingcompetition,
consumersandsociety.Asmorebusinesstakesplaceincyberspacemarketersmustestablishnew
parametersfordoingelectronicbusinessethically.Manycompanieshaveestablishedpublicaffairs
departmentstodealwiththesegroupsandissues.Animportantforceaffectingbusinessistheconsumerist
movementanorganizedmovementofcitizensandgovernmenttostrengthentherightsandpowersof
buyersinrelationtosellers.Thecompanymonitorsthepoliticalenvironmentofthemanyforeignnations
inwhichPepsiissold.SocialculturalEnvironment:Inthesocialculturalarena,marketersmust
understandpeople'sviewsofthemselves,others,organizations,society,natureandtheuniverse.They
mustmarketproductsthatcorrespondtosociety'scoreandsecondaryvaluesandaddresstheneedsof
differentsubcultureswithinasociety.Peoplelivinginaparticularsocietyholdmanycorebeliefsand
valuesthattendtopersist.Secondarybeliefsandvaluesaremoreopentochange.Therefore,marketers
havesomechanceofchangingsecondaryvaluesbutlittleofchangingcorevalues.Eachsocietycontains
subcultures.Totheextentthatsubculturalgroupsexhibitdifferentwantsandconsumptionbehavior,
marketerscanchooseparticularsubculturesastargetmarkets.Althoughcorevaluesarefairlypersistent,
culturalswingsdotakeplace.Today,youngpeopleareinfluencedbynewheroesandnewactivities:Tiger
Woods,andextremesports.Itmustalsocontinuetomonitortheculturalenvironmentsoftheother
countriesinwhichitdoesbusinessofPepsi.
14.14.MarketSegmentationAsweknowthatPepsiisprovidedamongahugepopulationwhichiscalled
market.Todistributeitandincreasingtherevenuethemarketshouldbesegmented.Pepsihassegmented
theirmarketkeepingfourmajorsegmentationvariablesintheirmindwhichare: Geographic
Demographic Psychographic BehavioralGeographicSegmentation:Geographicsegmentationmeans
dividingthemarketintodifferentgeographicalunitssuchasnations,regions,states,countries,citiesor
evenneighborhood.Pepsihasputlittleemphasistosegmenttheirmarketgeographically.Theyaredoing
businessalmostinmaximumplacesaroundtheworld.DemographicSegmentation:Despitethelarge
customerbaseintheSoftDrinkindustry,Pepsipreferstosegmentitselfasthebeveragechoiceofthe
NewGeneration,GenerationNext,orjustasthePepsiGeneration.ThesetermsadoptedinPepsis
advertisingcampaignsarewhatmarketersrefertoasGenerationX,whichareprofiledtobebetweenthe
agesof18to29.Inaddition,PepsishifteditsfocustothegrowingAmericanteenagemarketinthe1990s
byformingexclusivecontractswithAmericanschoolsanddevelopingadvertisingcampaignssuchas
The
15.15.NextGenerationandtheJoyofPepsi,featuringBritneySpears.Pepsibelievesthatiftheycanget
thismarkettoadopttheirproduct,theycouldestablishaloyalcustomerinalongrun.Psychographic
segmentation:Psychographicsegmentationdividesbuyersintodifferentgroupsbasedonsocialclass,
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lifestyleorpersonalitycharacteristics.Peoplefromsamedemographicgroupcanhaveverydifferent
psychographicmakeups.Pepsissegmentationhasalsobeenemphasizedpsychographically.Their
beveragesareverymuchfocusingtowardsloweranduppermiddleclassastheycanaffordtodrinkPepsi.
TheyhaveaproductlikeMountainDewaparticulardrinkwhichisfocusedespeciallywhohas
adventurouspersonality.Theircampaignofthisdrinktotallyfocusestoadventurousyoungpeople.
Behavioralsegmentation:Behavioralsegmentationdividesbuyersintogroupsbasedontheirknowledge,
attitudes,usesorresponsestoaproduct.Inthissegment,Pepsihasbeenconcentratingcarefully.Because
theyofferineveryspecialoccasions,forthepeoplewhoseekforbenefitsofftheirproducts,totheirloyal
customerbase.Occasionalcaseslikereligiousfestivalsspecialdayslikemothersday,valentinesday,
friendshipday,anyindividualsbirthdayormarriageceremonyoranniversaryinawordineveryspecial
occasionstherearepeopletowhombuyingPepsiforcelebrationismust.
16.16.SegmentationVariablesDataGeographicalWorldregionAsiaCountryBangladeshCitiesAllmajor
citiesDensityUrbanClimateTropicalwetDemographicAge1430GenderMale,FemaleFamilySize1
2,34,5+FamilyLifeCycleMarried,UnmarriedPsychographicSocialClassMiddleClass,UpperClass
LifestyleActualizes,Believers,Fulfilled,Achievers,Strivers,Experiencemakers,StrugglersPersonality
AdventurousBehavioral
17.17.OccasionsParties,Birthdays,Sports,RegularoccasionsBenefitsQuality,TasteUserStatusFirstTime
UserLoyaltyStatusStrongReadinessStageAware,InterestedMarketTargeting:MarketTargetingcanbe
carriedoutatseveraldifferentlevels.CompaniescantargetverybroadlythroughUndifferentiated
Marketing,verynarrowlythroughMicromarketingorsomewherebetweenDifferentiatedMarketing
andConcentratedorNicheMarketing.Therearefourstrategiesofmarkettargeting.Pepsifollowsthe
strategyofConcentratedorNicheMarketing.Innichemarketingcompaniesgoesafteralargeshareof
oneorafewsegmentsorniches.Throughconcentratedmarketing,thefirmachievesastrongmarket
positionbecauseofitsgreaterknowledgeofcustomeritservesinthenichesitservesandthespecial
reputationinacquires.PepsicustomersaremostlyTeenagersandYoungAdultsbetweentheagesof14to
30.ItalsotargetsatSchools,Colleges,Universities,Homes,Restaurants,Hotels,andStoresTheyfocused
onvarietaldifferentiationsince1990byintroducingastringofnicheproducts.Toincreasevolumein
ordertocounterflatCocaColasales,PepsiintroducedSierraMistin20022003totaketheplaceof7up
andgoheadtoheadwithSprite.Pepsihasalsotriedtoboostvolumebyintroducingproductsthatappeal
tospecifictargetmarketsthatitcurrentlyisnotreaching.PepsihasintroducedCodeRedandLiveWire,
extensionsofMountainDew,Pepsi
18.18.One,andPepsiBlue.Finally,Pepsiiscounteringdecliningsalesofcarbonateddrinksthroughthe
marketinganddistributionofStarbucksreadytodrinkproducts,andtheacquisitionofSOBEand
Gatorade.ThesuccessofPepsisMountainDewCodeRedlaunchedin2001wasthemostsuccessfulsoft
drinkinnovationin20yearsandhasspurredevenmorenicheproductintroductionsforPepsiCoaswellas
othercompetitors.InsomesensePepsialsofollowstheideaofMicromarketing.Astheyaretheyare
promotingtheirbrandstothelocalcustomergroups.Theyaresponsoringthesignboardsforthelittleor
bigshopkeepersintown.TheyarealsoprovidingrefrigeratorlogoedPepsi.Allthesetheyaredoingto
attracttheirtargetcustomers..MarketPositioning:PepsiCoplanstofurthercreatepositionsthatwillgive
productsthegreatestadvantageintheirtargetmarkets.Pepsihasbeenpositionedbasedontheprocessof
positioningbydirectcomparisonandhavepositionedtheirproductstobenefittheirtargetmarket.
PositioningStrategiesofPepsi:Tofindpointsofdifferentiation,Pepsihavefollowedsomestrategies
whichhavedifferentiatedthemselvesfromothers.Usuallymarketerstrytodifferentiatealongthelinesof
followingthingsProductDifferentiationChannelDifferentiationImageDifferentiationPepsihave
differentiatedthemselvesinthefieldofProductDifferentiation,ChannelDifferentiationandImage
Differentiation.The
19.19.uniquecharacteristicoftheirproductandtheirbrandimagehasdifferentiatedthemselvesfromthe
otherbeveragesinmarket.ProductDifferentiation:Productdifferentiationcomesintoplayforsureinthe
caseofPepsi.WhenlookingatPepsi,peoplethinkofsoda.ChannelDifferentiation:CokeandPepsi
distributetheirdrinksthroughindependentbottlers.Thesefirmsmaketheingredientsforthedrinksand
thenshipthemtothelocalbottlers,whoprettymuchfinalizetheproduct.Afterthisisdone,thisbottler
hastherighttodistributewhateverbranditwantstoaspecificregion.Ontheotherhand,abrandsuchas
CanadyDrydoessomethingmuchdifferent.CanadyDrypackagesitsproductinseverallocationsand
thenshipsthemtowholesalegrocerswhodistributethemtothelocalgrocerystoresandoutlets.Thisisa
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4/8/2017 Marketingstrategyofpepsiassaignment

greatexampleastowhyCanadyDryisstrongwithinlocalgrocerystores,butwhytheyarenotpresentin
vendingmachineslikePepsiis.Furthermore,Ifounditreallyinterestingthatsincethevendingmachine
marketisdominated
20.20.byPepsiandCoke,thatCanadyDryactuallyhastobepurchasedinordertogetintoavending
machinesomethingthatdoesnthappentoooften.ImageDifferentiation:Creatingastronganddistinctive
imagerequirescreativityandhardwork.Symbols,signs,logosandcolorareusedtocreatestrong
companyorbrandrecognitionandimagedifferentiation.PositioningstatementforPepsi:Aswediscussed
earlierthatPepsipositionsitselfonpointsofdifferenceaswellaspointsofparity.Pepsi'sPODistheir
forwardthinkingattitude.AccordingtothatPepsispositioningstatementisTonewgeneration,those
whowantthebesttasteindrinks,Pepsiisacolddrinkwhichgavethebesttaste,lowfatinareasonable
spending.
21.21.BrandstrategiesBrandPositioning:ProductattributesFirstintroducedas"Brad'sDrink".1893(as
Brad'sDrink)1898(asPepsiCola)1961(asPepsi)2014(asPepsiCola)ProductBenefitsfountaindrink,
aidindigestionandboostenergy(1893).Soda(carbonatedsoftdrinks),withdifferenttypesofcalories
andtaste.BeliefsandValuescreatewithslogantheyprovidesince18932014.19391950:"Twiceas
MuchforaNickel"1950:"MoreBouncetotheOunce"19501957:"AnyWeatherisPepsiWeather"
2012:"ChangetheGame"2013present:"LiveforNow"Brandnameselection:Createdanddevelopedin
1893andintroducedasBrad'sDrink,itwasrenamedasPepsiColaonAugust28,1898,thentoPepsiin
1961,andinselectareasofNorthAmerica,"PepsiColaMadewithRealSugar"asof2014.Theoriginal
trademarkapplicationforPepsiColawasfiledonSeptember23,1902withregistrationapprovedonJune
16,1903.Intheapplication'sstatement,CalebBradhamdescribesthetrademarkas
22.22.an"arbitraryhyphenatedword"PEPSICOLA"",andindicatedthatthemarkwasincontinuoususe
forhisbusinesssinceAugust1,1901.ThePepsiCola'sdescriptionisaflavoringsyrupforsodawater.
ThetrademarkexpiredonApril15,1904.BrandSponsorship:InsidePepsiCosOneForAll,AllFor
OneSponsorshipStrategy.Inaddition,PepsiCoforthefirsttimeisactivatingtheNFLacrossitsfullline
ofPepsiproducts:Pepsi,DietPepsi,PepsiMaxandPepsiNext.WithaportfoliothatincludestheNFL,
MLB,theInternationalCricketCouncilandotherdomesticandinternationalproperties,PepsiCo,Inc.is
oneoftheworldstopsponsorsintermsofannualspending.ThePepsiAreYouFanEnough?Lounge.
23.23.Branddevelopment:LineExtensionInalinePepsihasDietPepsi,PepsiNext,andPepsiZeroetc.
24.24.DistributionChannelofPepsi:Marketingchannelsaresetsofinterdependentorganizationinvolves
intheprocessofmakingaproductorserviceavailableforuseorconsumption.Bychanneldistributionof
PepsimeanstheintermediariesortheprocessthroughwhichPepsiistransferredfromtheproducertothe
ultimateusers.TherearealotofintermediariesbetweenPepsiproducersandconsumers.Some
intermediarieslikewholesalersandretailersbuyandresaletheproduct.Theyareknownasmerchant
middlemen.IntensiveDistribution:PepsiCofollowsanintensivedistributionstrategytodistributePepsi.
Tosupporttheiruniversalfeaturetheywanttoplacetheirproductinasmanyoutletsaspossible.
DistributionModelofPepsi:Pepsiusestwotypesofdistributionmodeltodistributetheproductamong
theconsumers.Theyare DirectDistributionSystem IndirectDistributionSystemDirectDistribution
System:Pepsiusesitsdirectdistributionsystemtodeliversuppliers.ItSuppliestheproductdirectlywith
PIZZAHUT KFC
25.25.AccordingtothemarketingchannelPepsiuseszerolevelofmarketingchannels.Itmeans
ManufacturerConsumerWecanseetherearenointermediariesbetweenmanufacturerandconsumer.This
singletypeofmarketingchannelismaintainedbyPepsi.IndirectDistributionSystem:Inthissystem,
therearealotofintermediariessuchasdistributors,retailers,wholesaleretc.Tomaketheproduct
availableattherightplacesattherighttimeinthemarket,thesalesdepartmentofPepsiCoCompanypays
majorattentiononcontrollingthechannelofdistribution.Thenatureofthechannelisasfollows:PEPSI
DISTRIBUTORSWHOLESALERRETAILERSCONSUMERS
26.26.SoaccordingtothemarketingchannelPepsiuses2levelmarketingchannel.ItmeansManufacturer
WholesalersRetailersConsumerNumberofIntermediaries:PepsiProvidesdirectandindirect
employmentof1,50,000people(includingsuppliersanddistributors).Distributors:Distributors
frequentlyhaveabusinessrelationshipwithmanufacturesthattheyrepresent.ThedistributorsofPepsi
maintainexclusivebuyingagreementsthatlimitthenumberofparticipants.Thedistributorbecomesthe
companysdirectpointofcontact.Distributorsdontselltheproductdirectlytoconsumers.Atfirst
PepsiCosuppliesPepsitothedistributors.Thentheyresaletheproducttowholesalerorretailer.
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4/8/2017 Marketingstrategyofpepsiassaignment

Accordingtohttp://www.exporters.sg/,thereare70distributorsofPepsi.Someofthemare:OTC
GLOBALLTD,INDIA(ExportingandimportingPepsiin500MLpetBottles)SUNRISEFOODSTUFF
JSC,VIETNAM(ExportingFamousBrandPepsiSoftDrinks330ml.)
27.27.Wholesalers:ThewholesalersofPepsigenerallybuyalargequantityofproductsdirectlyfrom
distributorsorthecompany.Thentheyresaletheproducttotheretailers.Accordingto
http://www.exporters.sg/thereare70wholesalersofPepsi.Someofthemare:FARWAYGENERAL
TRADINGLLC(ExportingandimportingPepsi)BrandDistributionPolandLTD,POLAND(Exporting
Pepsi0,33L24canscase)Retailers:Retailersconsistofsmallandlargeforprofitbusinessesthatsell
productsdirectlytoconsumers.Theretailersbuysmallquantitiesofanitemfromadistributorora
wholesaler.Thenresalethemtoconsumers.Accordingtohttp://www.exporters.sg/thereare563retailers
ofPepsi.SomeoftheretailersareAkinEnterprise,BANGLADESH.ANSiiComputers,BANGLADESH
Thechannelofdistributionisastructurewhichpresentsachoiceamongalternativechannelsof
distributionofthedifferentmarketingsituationfacedbyretailers,wholesalerandproducerswithinthe
structure.Tobearingmaximumprofitsofallinstitutionsconcernedachannelofdistributionshouldbe
treatedasaunitoftotalsystemofaction.
28.28.IntegratedMarketingCommunicationsPepsihaspopularityamongthepopulation.Therefore,itis
quitechallengeforPepsiColatomaintainandincreasethispopularity.IntegratedMarketing
Communications(IMC)isoneoftheeffectivestrategiesthatresearcherbelieveitwillsolvetheexisting
probleminthebusinessarea.Nowadays,competitioninthemarkettendtoincrease,thecustomeralso
changetheirlifestyleandbuyingbehaviorbecomeincreasinglychanged,thenusingonlyonetoolfor
marketingcommunicationisnotenough.Itisbecausemanysendersororganizationtrytoreachtothe
samereceiversorcustomers.So,usingmanyofstrategiesandcommunicationtoolswillhelptheirbrand
tobecomewellknown.IntegratedMarketingCommunication(IMC)isatoolthatsuitableforencouraging
thecustomerbuyingbehaviors.PromotionMixofPepsi:ThepromotionalmixelementusedforthePepsi
Refreshcampaignthemecenteredonsocialresponsibilityanddeliveredwithaheavydoseofsocial
media.Theytookitdeeperthananyothercampaign,targetingthemillennialgenerationages14to29by
utilizingsocialmediaasanadditionalsourcealongwithtraditionalmediatolaunchthePepsiRefresh
campaign.ThecampaignairedonpaidsearchanddisplayadsonYahooandGoogletotraffictheirviewer
toalinkonYouTubeandFacebooktooincludedotherchannellikeemailmarketingandmobisites
whichdrivevisitorstothesite.PromotionstrategyofPEPSI:Advertising:Foradvertising,itusedprinted
andelectronicmedia.EverynewspaperandmagazinecarriesPepsiadvertisementsthatmakethepeople
29.29.interestedtowardit.AdvertisementofPepsiareeyecatchingandattractive.Throughadvertisingit
informstheconsumeraboutnewbrandsandflavors.Pepsidesignstheiradvertisementcampaignfocusing
onthetargetmarkets.Theyresearchfortheneedofpeoplebeforemaketheads.Salepromotion:Pepsi
hasusedavarietyofsalespromotionsovertheyears.TheyhaveusedcelebritysuchasMichalJackson,
Beyoncforendorsements.ThishasbeenshownwiththeuseofBeyonc.MichalJacksonpromoting
PepsiTheyhavealsohadessaycontesttopromotionsthroughschools.Theyhavegiveawaysinstoresand
couponadvertisementinnewspapers.
30.30.Publicrelation:Pepsiisthefirstproducttorespondtoconsumerpreferencewithlightweight,
recyclable,plasticbottles.Inaddition,differentapproachesofpromotionalcampaignssuchaspress
releaseshavebeenimposedsoastomaketheproductmoreappealingtothetargetmarketandtomake
theseproductmarketable.Personalselling:Pepsiusepullstrategyforsellingtheproduct.Inevery
occasionPepsibringsspecialoffers.Like,theyreducethepricegiveextraquantityofdrinksinthesame
price.Publicity:ForpublicityPepsiusesocialmediasuchasFaceBook.NotonlythatPepsiuseYouTube
topromoteitsproduct.Itdrivespublicattentiontowardtheproduct.Pepsialsousebrandambassadorand
sponsorcricketteamandworldcupforpublicity.DirectMarketing:Pepsiusesitsdirectmarketingto
distributetheirproductthroughPIZZAHUT,KFCetc.Morethanthat,theyuseecommerceSuchas
RefreshmentServicesPepsi.comtomarkettheproduct.
31.31.Recommendation: SincethereareolderpeopleandPepsihasbeentraditionallyayoungpeoples
drink,Pepsiwillhavetostimulateconsumptionbyoldermembersofsociety PepsiusesPlasticbottles
andcanswhichcanbeharmfulforsociety.SoPepsishouldbeproducedmoreinrecyclablebottle Need
toimprovePRactivitiesinurbanareas Inourcountry,withbrandnamepeoplepreferPepsi23%but
withoutbrandnameitis51%.Soneedtoimproveitsbrandvalue. Shouldincreasepromotionstrategy
tointroducenewproductlinelikePepsinext,Pepsizeroetc.
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4/8/2017 Marketingstrategyofpepsiassaignment

32.32.Conclusion:Pepsihasbeensuccessfulingeneratingprofitsinthisextremelyrivalriesindustry.What
thecompanyshoulddonowisemployastrategythatnowonlyaddressesitsowndeficienciesinaneffort
togrowmarketshare,butonethatwillincreasetheoverallsizeofthepie.Thisstrategy,intheend,will
allowPepsitogrowandsustainaboveaveragereturns.Bibliography Pepsi
http://www.pepsiproductfacts.com/?or=pusa.1067. PepsiCohttp://www.pepsico.com/Company/The
PepsicoFamily.aspx. Wikipedia:Pepsihttp://en.wikipedia.org/wiki/Pepsi. Wikipedia:PepsiCo
http://en.wikipedia.org/wiki/PepsiCo. MarketTargeting
http://aboutpepsico.blogspot.com/2010/01/markettargetingisprocessof.html.
http://mpmcgraw.wordpress.com/2011/02/21/productdifferentiation/. NewYorkTimes
http://topics.nytimes.com/top/news/business/companies/pepsico_inc/index.html.
33.33.Appendix:Source:MORIProportionsizeandPurchaseprofile
34.34.Source:www.bplans.comFIG.5REDUCTIONOFWATERUSEDFORMANUFACTURINGAT
PEPSICOINDIA,IN2009SINCETHREEYEARS(SOURCE:HTTP://WWW.PEPSI.COM)

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