You are on page 1of 13

Lovely Professional University


Course code-MGT 514

Course instructor- MR. MANISH RAJPUT

Date of allotment-

Date of submission- 12TH DECEMBER 2009

Roll no- B-54 (10908403)

Section no. - 1901

I declare that this assignment is very individual work. I have not

copied from any other student work or from any other source
where except where due acknowledgement is made explicitly in
the text, nor has any part been written from me by another



Evaluator comment_________________________________

Marks obtain ______________out of___________________


Firstly, I would like to express my extreme and heart gratitude to

my teacher, Mr. MANISH RAJPUT, who give me this most
interesting research topic, as well as for all his assistance and
support me to producing this work.

I would like to thank the department

of library of my LPU who provide me the useful book on the basis
of which I try to make my term paper effective.

I would also like to thank my parents for ... well ... just about
Marketing Plan of Pepsi Beer

Company Description

PepsiCo is a world leader in snacks, foods and beverages with revenues of more than $43 billion
and over 198,000 employees. PepsiCo, Inc. was founded by Donald M. Kendall, President and
Chief Executive Officer of Pepsi-Cola and Herman W. Lay, Chairman and Chief Executive
Officer of Frito-Lay, through the merger of the two companies. Pepsi-Cola was created in the
late 1890s by Caleb Bradham, a New Bern, N.C. pharmacist. Frito-Lay, Inc. was formed by the
1961 merger of the Frito Company and the H.W. Lay M. Kendall is president and chief
executive officer.

At that time major products of the new companies are Pepsi-Cola, Diet Pepsi, Mountain Dew,
Fritos brand corn chips, Lay’s brand potato chips, Ruffles brand potato chips. In 1966 company
entered in Japan and eastern brands with some new brands.

In 1969 Bold, modern pepsi-Cola packaging using red, white and blue was introduced and
“Pepsi’s got a lot to give”, became their advertising theme. PepsiCo sales pass the $1 billion
mark. The company has 36,000 employees and PepsiCo moves from New York City to New
World headquarters in Purchase, N.Y. The New corporate headquarters feature a building by one
of America’s foremost architect’s. Also Frito-Lay begin a program of expansion. During that
time Pepsi introduced the industry’s first two-liter bottle and this was the first company to
respond the consumer preference with lightweight, recyclable, plastic bottles.

In 1971, Chief executive officer of the company assumes the position of chairman of Board of
directors. Inn 1977 PepsiCo acquires Pizza hut, inc. and it was founded in 1958. With that
PepsiCo passes the $3 billion mark in sales. Around 1985 PepsiCo was the largest company in
the beverage industry and it had revenues of $7.5 billion, more than 137,000 employees. Its
products are now available in nearly 150 countries and territories around the world. And it can
also created a boom in the market also they opted “entertainment marketing” strategy which had
been proven very successful. It also distributed its products in China.

In 1993, Pepsi introduced ‘The Cube” , 24 can multipack, that satisfied growing consumer
demand for convenient large size soft drink packaging. And it also introduced Aquafina bottled
water into test market. In 1985, PepsiCo had joined hands with one of the India’s leading
business houses, the R P Goenka group, to begin operations in the country. With this group it
planned to import the cola concentrate and sell soft drinks under the Pepsi label, however this
proposal was rejected by the govt. of India as the use of foreign brand was not allowed as per the
regulatory frame.
But afterwards PepsiCo introduced some terms and conditions and govt. got impressed from the
conditions as these were somehow in favor of Indians.

After this they go on launching their products in different countries with different tag lines and
marketing strategies. As in 2001 Tropicana Brand introduced smoothies; natural juice-based
product, drink that delivers nutrition, taste and convenience.

Up till now the famous brands under PepsiCo are:

• Pepsi Cola brands

• Frito-Lay brands

• Tropicana brands

• Quaker brands

• Gatorade brands

And now PepsiCo has launched its new product that is “Pepsi Beer”. It has stepped itself in the
Brewing industry and expanding its areas of product by launching this product.

Mission and Vision


Their mission is to be the world's premier consumer product company focusing on convenient
foods and beverages. They seek to produce financial rewards to investors as provide
opportunities for growth and enrichment to their employees, their business partners and the
communities in which they operate. And in everything they do, they strive for honesty, fairness
and integrity.


"PepsiCo's responsibility is to continually improve all aspects of the world in which they
operate - environment, social, economic - creating a better tomorrow than today."

Their vision is put into action through programs and focus activities to benefit society, and a
commitment to build shareholder value by making PepsiCo a truly sustainable company.

Performance with Purpose

At PepsiCo, they are committed to achieving business and financial success while leaving a
positive imprint on society - delivering what we call Performance with Purpose.
Their approach to superior financial performance is straightforward - drive shareholder value. By
addressing social and environmental issues, they also deliver on their purpose agenda, which
consists of human, environmental, and talent sustainability.

Marketing objective of PepsiCo

Their basic objective is to be leader in all target markets. And they treat their employee and
workers as assets and always give due importance to the taste and demand of customers. PepsiCo
understands the importance for providing nutritious foods and physical activities of children.

Since they introduced the Smart Spot in 2004, they have been making it easier for consumers to
identify products that contribute to a healthier lifestyle in the U.S. The Smart Symbol - the
symbol of smart choices made easy - is a simple labeling system that explains why each product
is a smart choice. It is the only industry symbol that meets nutrition criteria based on authoritative
statements from the U.S. Food and Drug Administration and the National Academy of Sciences.
Today, more than 300 different products carry the Smart Spot label.

They are market leader and challengers in many areas and want to attain respectable position
regarding their new product that is ‘Pepsi beer’.
Situation Analysis

Pepsi Beer is a new product of PepsiCo company and trying to penetrate in the market where
large number of competitors available to this product. Though PepsiCo is In leading state and
Pepsi and coke is somehow challenger in the beverage segment. But as a new product it will take
time to be market leader in this segment also. And it is opting marketing strategies to be leader
regarding their new product.


The main competitor to this product in available market right now can be “Kingfisher”.
Kingfisher beer is an Indian beer brewed by United Breweries Group. With a market share of
50%, It is India’s largest selling beer and is currently available in 52 countries outside India.

Other companies are Cobra having 9% share, Sab Miller having 36% share and others having 5%
share. Also presently if we see there are 5 brands of beer in India competing in this area. These
are Haywards, Royal Challenge, Castle Lager, Knock Out, Foster.

To fight this competition PepsiCo have to

• Build distribution channels
• Should apply Massive brand development strategies.
• Penetrate in other different products and create its brand image.
• First should lead in this market and should prepare itself for further acquisition of other
brands to expand its area and again create an good brand image in the mind of customers.

• Wide advertising strategies are being used by this company and they believe in
entertainment marketing strategy to attract maximum customers even by advertisement

• Aggressive advertising at outlets and pubs to promote their product fully with colourful
brand name to attract maximum customers.

• Association with classy up-market and stylish bars and lounges.

• Tying up with large department stores like Big Bazaar, Walmart for retailing its beers.

• It has also with its products like snacks, beverages with a good reputation and Remarkable
brand name. So it is also adding a brand name to this new product.

• Also we all know that people have a misconception about beer as it has alcohol in it.
Though drinking is not safe. But PepsiCo is advertising its product with also highlighting
or making people aware with the unique uses of this product like by adding this to foods
like chilli, bread it add flavor to them and also the yeast present in it act as skin softener
and conditioner to hairs. So it has numerous of uses.

SWOT Analysis

This analysis stands for strength, weaknesses, opportunities and strength. Strength and
weaknesses are internal factors that is they can be controlled by ourself or we can say that
they are in our control. That is we can make use of our strength in right direction any time
we want and convert our weaknesses in our strength.

But opportunities and threats are different from that, they are external factors and not in
our control. Threats can come any time and when opportunities come we have to grab it.

Strengths of PepsiCo

• It has worldwide distribution system and huge financers are there.

• Also it is oldest and larger player in India and worldwide known Brand.
• It is market leader in its other products.
• Aggressive advertising used by this and also unique one is also adding strength to
• Also they come up with new products with innovation and also maintained their

Weaknesses of PepsiCo

• Not all PepsiCo products bear this company name so they can’t enjoy the
brand value attached to their product but it is not in the case of Pepsi Beer.

• PepsiCo is hard to inspire vision and direction for large global company.

• Different brand under same company can sometime be proven as a weaknesses for
any product.


• As it has expanded its business in many countries so it can expand its food
division and can launch its new product like Pepsi Beer here can expand
• As this company is inclined toward healthy products so people are more attached
to this brand.
• Few Relaxations of rules are there now –a- days regarding alcoholic products.
• And also there is reduction in taxes now a days.
• Focus on most important customer trend-Convenience.


• Prohibiting on advertisement of beer can be act as a threat for this product.

• Indian culture sometime don’t adapt these alcoholic product and act as a hindrance
for it.
• Over 50% of the company’s sales come from Frito-Lay; that is a threat if the
market takes a downturn.
• New competitors are also a threat to it.
Marketing Mix

PepsiCo is one of the World’s largest food and beverage companies, with 2007 annual
revenues of more than $39 billion. The company employs approximately 185000 people
and its products are sold in approximately 200 countries through 4 p’s which are

Product: There are variety of products related to PepsiCo. Pepsi Max, Pepsi Light, Pepsi,
7UP, Caffeine Free Pepsi Light, Mountain Dew.

Price: Pepsi is competitively priced to its major competitors, offering a better tasting
product at a competitive price. Marketing penetrating strategy is being opted here as it’s a
new product, though it has its products and all have a brand image but to withstand in
market it is launching its new product that is beer with low price as compare to
competitors and after establishing its brand image it will increase its price. And will gain

Promotion: TV advertising, Online, radio, magazine, cinema and outdoor support. Other
promotional items include: point of sale material, consumer premiums (e.g. clothing, caps,
etc), sporting and concert sponsorships.

Also they believe in entertainment type advertising to attract youth and it give its
advertisement in Cricket matches also as youth come there in large number and it would
prove useful.

Also they give their advertisements in pubs and tie ups with branded hotels, bars and
lounges. Also to promote their product they tell some unique uses of their product to
create awareness among people about their extraordinary uses and can generate profit
from this feature.

Place: PAH/PI own the Pepsi brands. They sell the concentrate to CSA who manufactures
and bottles the Pepsi products and distributes it to consumers. CSA distribute Pepsi via
various channels e.g. major supermarket chains, convenience stores, smaller milk bars,
restaurants and fast food outlets (e.g. KFC, Pizza Hut, Oporto).

Also they provide more of their products near 5 star hotels so that it adds brand value to
their product as they are selling their product indirectly through a branded hotel. And to
Places like beaches they make reach of their product easy to generate maximum profits.

Choosing a place always play a major role as if they provide their customer in general
stores it would be of no use rather it would create a bad impact of their product and ruin
their brand image. As in Indian culture it would not be acceptable at all.

Target ting, Segmentation and Positioning


Segmentation : Identifying all segments for the product/service. Many of the resources will be
helpful to you when you develop segments. To be useful, segments should be:

Accessible (can you reach them)
Distinct from one another

The objective of segmentation is to find attractive markets. Strategies include

Break market into components

Regroup into market segments
Select which segment to target
Here segments are being made on the basis of demographic, behaviaral, age, gender, and
occasional factors. So after segmenting all the segments on the criterias they decided to target
youths here.

So after launching this product beer it is has broken up its market in various segments and chosen
one of the segments as youth. And ready to targeting it. And also their products are distinct from
others. As it has its products already in various segments as foods target all the segements. But
this product is basically for youth.

Positioning is an essential component -- and skill - in good marketing. Perceptual maps are used
to determine the position of a product, firm, person, service or idea. Positioning maps, or
perceptual maps can be simple, yet very effective marketing tools. One definition of Positioning
Theory is: the science of perceptual strategy. It is based on a theory that strategy can only be
planned in the mind of the consumer, not the marketplace.

It is important to understand the levels of competition because positioning applies at all levels of

This Brand is successfully positioned in the mind of people and launching its new product beer
will definitely provides it brand value. It will be an exciting product to the customer. Also with its
massive advertisements it will definitely create its new brand positioning in the mind of

What is target?. This is the real goal/objective in market that marketer want to reach.
So with this product after segmenting various segments according to behavioral and demographic
approaches it is now targeting youth in the Indian culture. As Indians celebrate many occasions
with these type of products .So PepsiCo is targeting Youth in Indian Culture. And fulfilling all
the criteria.

Manufacturing of this Product


1. Brewing
At the brewery the malt is cleaned, weighed and crushed to produce "grist". The grist is mixed
with hot water in a "mash tun" (tank) and allowed to stand at a temperature which lets the starch
from the malt convert into fermentable sugars. The mash is then transferred to a "lauter tun"
where the liquid is separated from the grain residue. This sweet liquid is called "wort",
(pronounced "wert".)
The wort is transferred to another tank called the "kettle" where liquid sugars are added and the
mixture is boiled. During boiling, the protein material in the wort joins together to form "trub".
The trub is removed by transferring the wort to a whirlpool.

2. Fermentation

After the trub is removed, the wort is cooled, and then transferred to a fermenter - a large closed
vessel.Yeast is then added which converts the sugars into alcohol and carbon dioxide gas. During
fermentation the yeast cells multiply many times. The carbon dioxide gas which is released is
collected for use later. Fermentation continues until only non-fermentable sugars remain, when
the fermenter is chilled to four degrees centigrade to stop fermentation. Yeast settles to the
bottom of the vessel and from here it is removed for re-use, or sold and used to produce food
products such as Vegemite.

3. Storage

Once the yeast is removed the beer is passed from fermentation to storage vessels. During
transfer the beer is cooled to minus one degree centigrade. Hop extract, which gives beer its
characteristic bitter flavour, is added at this stage, which permits greater flavour control and
enables the brewer to maintain a better taste consistency. The beer stays in storage at this
temperature, and any material which might impair the appearance, flavour and shelf-life of the
beer settles out.

4. Filtration

Following a set time in storage, carbon dioxide gas collected during fermentation is added to give
beer its characteristic head and sparkling taste. The beer is then passed through a filtration system
to remove surplus yeast and protein.

5. Pasteurisation
This is a process of heating and rapid cooling which prolongs shelf-life and destroys any bacteria
or other organisms in the beer. Canned and bottled beers are pasteurised in their containers, while
draught beer is pasteurised by means of a special heat exchanger called a flash pasteuriser.

6. Packaging
The filtered and sparkling beer is packaged into bottles, cans and stainless steel casks, or kegs,
ready for distribution around Australia or for export around the world.

So they follow stringent conditions to make their product hygienic and a Quality product.

Segmentation, targeting and Positioning of PepsiCo

Manufacturing of beer making