FINAL INTEGRATED PROJECT

MARKETING MANAGEMENT

MARKETING PLAN

Submitted by

DIDDI SRINIVAS

12TH NOVEMBER 2017

Word count: 3301

(Excluding the cover page & references)
 MARKETING PLAN

Acknowledgement:

In the Final Integrated Project, We made a marketing report on PepsiCo company product -Pepsi. We

have collected required information regarding Pepsi from the company and other websites. Our team-2

members give a special thanks to respective professor Dr Amy Wong for giving us this opportunity. I

would like to sincere thanks for giving us the right direction, motivation to complete our FIP report.

Executive Summary:

Market strategy analysis is concerned with the authentic and analysis and evaluation of information

about specific and practical aspects of marketing problems to help the management in making effective

decisions.

This report provides an analysis and evaluation of the Marketing Strategy for PepsiCo soft drink

product-Pepsi. Methods of analysis include Market Segmentation, Targeting, and Market Positioning of

Pepsi.

Into this analysis, we have tried to show how Pepsi segment their market basing on different variables

market characteristics. They target market which they can serve. We also discuss Pepsi’s internal and

external environment related aspect. The PepsiCo make a Position in the market in FMCG product and

how do they differentiate their competitor and build a brand value. The brand loyalty in their customer

mind and make strategy of positioning in the market. We tried to give a positioning statement of Pepsi

and ended the whole report with recommendation and conclusion.

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Table of contents
1 Background for Pepsi
2 SWOT Analysis of Pepsi – PepsiCo.
2.1 Strengths in the SWOT Analysis of PepsiCo-Pepsi:
2.2 Weaknesses in the SWOT analysis of Pepsi :
2.3 Opportunities in the SWOT analysis of Pepsi:
2.4 Threats in the SWOT analysis of PepsiCo:
3 What is Segmentation, Targeting and Positioning?
3.1 SEGMENTATION
3.2 TARGET SEGMENT-
3.3 POSITIONING
3.4 PepsiCo Segmentation, Targeting and Positioning
4 Marketing Strategy
4.1 Place/Distribution in PepsiCo’s Marketing Mix
4.2 PepsiCo’s Promotion (Promotional Mix)
4.3 Advertising Strategy of Pepsi
4.3 Types of Advertising
4.4 PepsiCo’s Prices and Pricing Strategy
5 Pepsi and the New Generation
6 Recommendations
7 Action Plan
8 CONCLUSION

1. Background for Pepsi

The soft drink industry includes shimmering drinks, concentrates, filtered water, juices, smoothies,

utilitarian beverages and prepared to-drink tea and espresso. A soft drinks, by and large, does not

contain liquor but instead can have up to 0.5% liquor content. They are typically made on a still or

carbonated water base with included flavors and sweeteners. This industry is reliant on the creation of

value jugs and drinking packs which are utilized to keep the items new for a drawn out stretch of time.

In 2010, a group of 8 nations that incorporate France, Canada, Germany, UK, Italy, Russia, U.S and

Japan had produced around $291 billion in soda pops deals. By 2015, the worldwide soda pop industry

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is relied upon to stretch about $310 billion. Among all the above nations, the US drives the gathering

and contributes around 43% of the piece of the pie and creates approximately $125 billion in deals. The

US soda pops showcase is required to be more than $127 billion of every 2015. Amid a similar period,

the worldwide useful beverages advertise, which incorporates caffeinated drinks, sports beverages, and

Nutraceutical drinks, is the gauge to achieve more than $62,000 million, according to the information

given by Market Line.

By 2015, the span of the non-mixed refreshments showcase (Soft drink) in India is the figure to come

to the $2.4 billion, according to the information given by Associated Chambers of Commerce and

Industry of India (Assocham). Amid a similar period, the residential utilization of soda pops in the

nation is relied upon to cross the 34,000 crore liters check, which right now remains at around 17,200

crore liters.

The global carbonated soft drinks showcase is required to have a volume of 224 billion liters in 2016

when contrasted with an expansion of 12.9% since 2011. Cola standard, which is the most significant

section of the global carbonated soft drinks showcase, contributes around 42.7% of the aggregate

market's volume and the Americas alone provides 51.4% of the carbonated sodas advertise an incentive

all through the world. The Coca-Cola Company in U.S is the world's driving player in the carbonated

soda pops showcase, which contributes 47.6% offer of the market's volume, according to the

information given by Marketing.

PepsiCo, Coca-Cola, and Cadbury Schweppes are the three first worldwide soda pops industry players.

In US, Coca-Cola utilizes just about 140,000 individuals and offers more than 3,500 items in more than

200 nations. In India, the best soda pop brands are Coca-Cola, Mountain Dew, Pepsi, Maaza, and

Nimbooz.

2. SWOT Analysis of Pepsi – PepsiCo.

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Pepsi is one of the most famous FMCG brands in the world. Pepsi products are in almost 200 countries

around the globe. Pepsi operates out of New York but has covered the world and is most famous for its

carbonated drink – Pepsi. Pepsi has a huge product portfolio and mostly targets the youngsters.

2.1. Strengths in the SWOT Analysis of PepsiCo-Pepsi:

Strong Brand equity: it is famous brands in the world in the food and beverage sector. PEPSI has an

excellent brand name, awareness & high-quality image. PEPSI has got goodwill in the market for the

brand name.

Strong Leadership: PepsiCo is doing well under the leadership of Indra Nooyi.

Customer Loyalty: Pepsi has an extremely loyal customer base and has an iconic taste. Their

customers do not prefer to shift other brands.

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Strong distribution: Pepsi has a global presence in more than 200 countries. PEPSI has an efficient

distribution system, i.e. dealers have good contacts with the customer executive.

Supply Chain: They have one of the best supply chain networks, making the products available across

the globe. Strong dealer network.

Tie-Ups: They have tie-ups with many sports events and music concerts which increasing the brand

recall. They had sponsorships to major sports a team and created a brand in the youth.

Strong Services: PEPSI has efficient and stronger service than its competitors like COKE who too

have a good name in soft drink market

Competitive price: Quality products at a competitive price. They have continuous & strategic

improvements in the promotional strategies. Market share of PEPSI is consistently growing due to

competitive price.

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2.2 Weaknesses in the SWOT analysis of Pepsi:

Competition: Coca-Cola is the most competitors in their soft drinks category. They are always

neck to neck fight with each other.

Products perceived as unhealthy: Most of the soft drinks of the Pepsi is perceived as sick.

Product Dependence: They are only present in the food and beverage industry it is harmful in the

more extended run. They need to diversify their business to other product segments to

become a global leader.

Brand Ambassadors: Wrong remarks by the celebrities, in turn, might damage the brand image

of Pepsi. They are the face of the over-dependence on stars for endorsements are a

considerable risk.

Value addition: Pepsi targeted towards youngsters. However, it is not known to display Value

advertising characteristic of Coca-cola. Coca-cola has time and again focused on the

positive values of life, something which Pepsi can learn from them.

Flavors: The cola flavors of Pepsi have not so many variants (as the customer perceives it). They

have restricted range of products.

Transportation: The frequency of vehicle in peak season is not sufficient.

2.3 Opportunities in the SWOT analysis of Pepsi:

Healthy Options: Pepsi is carbonized soft drink. They should work more on improving the health

implications of their products like Diet Pepsi.

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Diversification: Business diversification into different market segments is a tremendous

opportunity. They have the talent of team, resources and financial backing.

R&D: Recently PepsiCo came out with a healthier soft drink like make 7Up by using the

substitute of sugar called Stevia. More such research needs to be done a game changer and

needs to more focus on the diet drinks category.

CSR: They can do CSR activities in the local area to tackle the negative remarks that hurt the

brand image of the organization.

Flavors: They can include the various flavors such as watermelon, raw mango etc. It can help

Pepsi to attract a larger market.

Distribution network: Pepsi can explore its distribution network in the interior area also.

Threats in the SWOT analysis of PepsiCo:

Competitors: PepsiCo’s have fierce competition from Coke, They have the neck to neck fight in soft

drink and products are already available in the market with similar schemes.

Health Factor: The unhealthy factor associated with its products is the big issue after 2015 in the Indian

market. We have seen by the fall of soft drinks sale due to health-conscious awareness in customer.

Economic Slowdown: PepsiCo soft drink sale declined, and impact sales of the company.

Government Norms: Different norms of different countries might prove difficult to handle and

compliance with it as well.

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3. What is Segmentation, Targeting and Positioning?

Segmentation, targeting and positioning (STP) are the three fundamental principles of modern

marketing, based on which a company designs a product or service for targeted consumers. STP is the

bone of Marketing plan strategy.

3.1 SEGMENTATION- It defines the consumer. It uses mass marketing strategy to target the groups

of the customers of different demographics and geographic regions. They focused on Segmentation

involves dividing population into groups according to certain characteristics, whereas targeting implies

choosing specific groups identified as a result of segmentation to sell products.

Psychographics:- Outgoing, readiness to try new products, experimental by nature, don’t mind

spending a little extra on snacking, brand-conscious, lifestyle is comfortable

During the 80s, Pepsi applied these strategies, specially positioning Pepsi in the market as “The

Choice of a New Generation” to compete with the leading brand of soft drinks, Coco-Cola.

3.2 TARGET SEGMENT- It helps to select the consumer. It is the important strategy which helps the

brand in targeting the specific group of customers with differentiated offerings.

3.3 POSITIONING- It helps to tap the consumer. Positioning is the foundation of the commercial plan

which defines two important elements: What and Whom. (What you are going to sell and to whom you

are going to sell). Positioning refers to the selection of the marketing mix the most suitable for the

target customer segment.

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PepsiCo Segmentation, Targeting and Positioning

PepsiCo segmentation, targeting and positioning decisions can be specified as the essence of overall

marketing efforts.

PepsiCo uses multi-segment type of positioning. They targets more than one customer segment at the

same time with different products.

For example, Pepsi-Cola is positioned as soft drink that tastes good and has a pleasantly refreshing

impact. However, Pepsi-Cola contains a high amount of sugar and it is not positioned for customers that

are concerned about health implications of consuming carbonated soft drinks.

For this specific customer segment PepsiCo offers Diet Pepsi, which is positioned as a soft carbonated

drink that contains less among of sugar compared to Pepsi-Cola and other soft drinks.

PepsiCo segmentation, targeting and positioning illustrates as below in the following table:

Type of

segmentation Segmentation criteria PepsiCo target segment

Region Domestic/international
Urban and semi-urban areas ( North,

Geographic Density south, east, west)

Demographic Age Age- 6-18 , 18-24, 24-39
Gender Males & Females
Life-cycle stage Teen ager, Bachelor Stage young, single

people not living at home

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Newly Married young Couples, no

children
Full Nest I youngest child under six
Full Nest II youngest child six or over
Upper to middle income like Average,

Income above average and high earners

Students, employees, owner,

Occupation professionals
Degree of loyalty ‘Hard core loyals’ and ‘Soft core loyals’
Refreshment, enjoying good taste,

Benefits sought satisfaction of a habit, spending time

Personality Easygoing, determined, and ambitious
Behavioral User status Regular/ occasional users
Working class, middle class and upper

Social class class

Outgoing, readiness to try new products,

experimental by nature, dont mind

spending a little extra on snacking, brand-

Psychographic Lifestyle conscious, lifestyle is comfortable

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“They changed My COKE” How Pepsi Re-Positioned Coke during the Cola wars

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4. Marketing Strategy

PepsiCo's promoting blend has advanced after some time, particularly in light of the impacts of mergers

and acquisitions. The showcasing blend or 4Ps (Product, Place, Promotion, and Price) is the mix of

methodologies and strategies that the firm uses to actualize its advertising design. In such manner,

PepsiCo utilizes different methods and procedures in light of its variety of items and brands.

This component of the advertising blend recognizes the authoritative yields made accessible to clients.

PepsiCo began as the Pepsi-Cola Company, with every single unique item under the Pepsi mark. The

accompanying are the present product offerings of PepsiCo: Soft drinks

1. Energy drinks

2. Cereal

3. Rice snacks

4. Snacks

5. Side dishes

6. Breakfast bars

7. Sports nutrition

8. Bottled water

9. Other merchandise

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4.1 Place/Distribution in PepsiCo’s Marketing Mix

PepsiCo utilizes a worldwide system for disseminating its items to shoppers. Scenes for dispersion and

deal are considered in this component of the promoting blend. PepsiCo's places for appropriation are as

per the following:

1. Retailers

2. Online merchandisers

Most PepsiCo items are accessible at retailers, for example, general stores, markets, and comfort stores.

Clients can get to PepsiCo-authorized stock like tumblers and shirts through retailers and their sites. In

view of this component of the showcasing blend, PepsiCo's places for circulating its items are generally

non-online retailers.

4.2 PepsiCo’s Promotion (Promotional Mix)

PepsiCo elevates its items to pull in target clients. This component of the advertising blend covers the

showcasing interchanges methodologies and strategies that the organization uses to achieve its clients.

The accompanying are the strategies in PepsiCo's limited time blend, masterminded by essentialness:

1. Advertising

2. Sales advancement

3. Direct showcasing

4. Public relations

Publicizing is PepsiCo's essential strategy for promoting interchanges. For instance, the organization is

prevalently known for utilizing prominent name endorsers to advance its items on print media, TV,

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radio, and online media. The firm likewise publicizes through business signs it patrons or provides for

stores and different foundations. PepsiCo periodically applies deals advancements, for example, bundle

arrangements or rebates. Additionally, the organization's neighborhood workplaces once in a while

execute guide promoting through understandings to give items to associations at discount costs.

Moreover, PepsiCo utilizes advertising through budgetary help and sponsorships, for example, in sports

occasions. This component of the showcasing blend demonstrates that commercials are the fundamental

determinant of PepsiCo's capacity to speak with target clients and advance its items.

4.3 Advertising Strategy of Pepsi

Pepsi’s target audiences are mostly teens and young adults. The company changes its advertising

strategy and image to reflect the targets and interests. Pepsi makes sure that the advertisements reflect

to the target audience’s interests. The advertising strategy includes cool, hip promos to attract more of

the target audience. The advertising is mostly creative and has different elements like music and sports

other than bollywood.

4.3.1 Types of Advertising:

There are several types of advertisements are used by Pepsi that help expose the product out to the

public. Some examples are print advertisement, outdoor advertisement, and broadcast advertisement.

Print advertisements:

Print Advertisements are ads that are printed by companies and published in newspapers, magazines,

brochures, and flyers.

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Outdoor Advertising

Outdoor advertisements are ads on:

1. Billboards
2. Kiosks on electric poles
3. Bus Shelters
4. Vehicular Display
5. Wall Posters
6. Banners
7. Landscape and street furniture

Broadcast advertising

Broadcast advertising is radio, television, and Internet advertising

Slogans: Pepsi uses various slogans for Advertising which are given as below.

 1985 - “New Generation” advertising continues

 1992 - “Gotta Have It”
 1993 - “Be Young, Have Fun, Drink Pepsi”
 1997 - “Generation Next”
 2000 - “Joy of Cola”
 2003- “Dare for More”
 2006–2007: "Why You Doggin' Me"/"Taste the one that's forever young“
 2007–2008: "More Happy"/"Taste the once that's forever young“
 2008–present: "Something For Everyone"
 2009–present: "Refresh Everything"/"Every Generation Refreshes the World"
 2010–present: "Every Pepsi Refreshes The World"
 2011–present "Summer Time is Pepsi Time“
 2011–present "Born in the Carolinas”
 2012: "Where there's Pepsi, there's music"
 2012: "Change The Game"
 2012: "The Best Drink Created Worldwide
 2013: "Live for Now“
 2013–present: "Embrace your past, but live for now" - Global campaign featuring

Some of the Indian slogan area are used by Pepsi to attract the particular demographic people in their

mother tong language.

Indian Slogans Yehi hai right choice Baby, Aha

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 Yeh Dil Maange More !

 Pepsi ye pyaas heh badi
 Yeh hai youngistaan meri jaan
 My Pepsi My Way
 Change the game
 Oh Yes Abhi

4.4 PepsiCo’s Prices and Pricing Strategy

PepsiCo's costs are impressively changed because the organization has a comprehensive item blend,

which implies that it has a substantial number of product offerings and brands. Methodologies used to

set costs are examined in this component of the advertising blend. PepsiCo's basic evaluating

procedures are as per the following:

1. Market-arranged evaluating methodology

2. Hybrid Everyday Value estimating methodology

The greater part of PepsiCo's items are evaluated in view of the market-arranged estimating system.

The organization's goal in utilizing this method is to guarantee that its costs are aggressive, in view of

other firms' costs and winning economic situations. Then again, Hybrid Everyday Value is PepsiCo's

estimating methodology for some of its items, particularly soda pops. The organization's goal in

utilizing this estimating methodology is to close the hole between consistent/ordinary costs and marked

down occasion costs. Along these lines, PepsiCo anticipates that customers will purchase a greater

amount of its sodas regular and not merely amid the occasions.

5. Pepsi and the New Generation

 Pepsi Creates promotion tailored to their needs and interests to reach New Generation like

entertainment and music.

 They used radio, television and internet for advertising to attract the teen market segment.

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 They also provide free pieces of stuff and discounts Contests/drawings, Music, Club cards and

Team sporting events. They have introduced teen-friendly retail stores and internet site to

attract new customers.

 Pepsi targets the New Generation specifically 12 to 21-year-olds by use of effective techniques

campaigns .Pepsi is attempting to establish a loyal drinker for life and the largest group of soft

drink consumer

6. Recommendations

 PepsiCo has talent R&D team, they will be able to come out with new or modified products that

are liked by the customers.

 It will also be able to come out with a promotional campaign (that is key to its success) that will

be acceptable to people of different countries.

 A campaign that caters to the sentiments of the people is likely to succeed in most countries of

the world.

 To increase its research, it is also essential to sponsor more entertainment and sporting events

both in the international as well as local levels.

7. Action Plan:

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8. CONCLUSION

 After analyzing the marketing strategy, we concluded that PEPSI is growing company in soft

drink product. They have the edge over other soft drink producers in the market. They are doing

very good in the current scenario, but they need some R&D in the health-conscious product to

sustain the customer.

 PepsiCo is always looking into the future, trying to make the company most profitable and

suiting for its shareholders.

 PepsiCo is also reformulating its product with a new flavour and high calories.

 The new policy of the company should be introduced before the competitors launch those

policies.

 The company’s executives should develop a healthy relationship with the dealers, and it will

help to increase the market share and profitability.

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Coca-cola is neck to neck fighter and to have an almost equal market share if PepsiCo concentrates on

the following factors will be able to face tough challenges in future:

1. Technology
2. Quality
3. Brand competition
4. Price competition
5. Good balance between production and sales
6. Different preferences for products by different age groups
7. R & D capacity
8. Distribution Network
9. Pre-Sales services

References:

1. https://research-methodology.net/pepsico-segmentation-targeting-and-positioning-2/

2. http://www.segmentationstudyguide.com/example-segmentation-targeting-positioning-process/

3. https://mpk732t22016clusterb.wordpress.com/2016/08/08/they-changed-my-coke-how-pepsi-re-

positioned-coke-during-the-cola-wars/

4. http://sat.xlri.ac.in/sat_ais/resource/resdb/RH16/RH16-1/MKTGRH16-1/STP_PGCHRM.pdf

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