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A

Dissertation Report on

”A BRAND POSSITOIONING OF PEPSI CO.”


For e partial
fulfillment of the degree of
MASTER OF BUSINESS ADMINISTRATION

Under the Guidance of


Mr. Manit Mishra
(Assistant Professor)

Submitted by:

SAMBIT KUMAR
Regd no.. No. 0806229079
DRIEMS B – SCHOOL, TANGI, CUTTACK

ACKNOWLEDGMENT

I acknowledge the indebtedness and gratitude of internal guide mr manit


mishra for extending his cooperation and help for successful complication of
the project .
I would also thanks faculty member of DRIEMS B School ,my entire friends
end librarian for their cooperation for the completion the project

Sambit kumar
Regd.No.-0806229079

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DECLARATION

I hereby solemnly declare that the dissertation report entitle “BRAND


POSSITIONING OF PEPSICO.”. Being submitted by me to the DRIEMS B
-School, Tangi, Cuttack .
For the practical fulfilment of MBA programme, I am proud to proclaim that I
have completed my study under the guidance of Mr Manit Mishra.
This report has neither been submitted to any other institute nor published
anywhere else.

SAMBIT KUMAR
Regd .no. 0806229079

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CERTIFICATE

This is to clarify that sambit kumar registration no 0806229079 in six trimester


MBA have submitted BRAND POSSTIONING OF PEPSICO.” under the
guidance of Manit Mishra in the practical fulfilment of requirement for the award
of master in business administration under Biju Pattnaik University of
Technology.

Mr Manit Mishra
DRIEMS B-SCHOOL

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CONTENTS

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INTRODUCTION

Marketing is typically seen as the task of creating, promotion, and delivering goods and services
to customer and business. Infact, marketing people are involved in marketing 10 types of entities
goods, services, experiences, events, persons, properties, organization, information, and ideas.

The process of ascertaining consumer needs, converting them into a product or service and then
moving it to the final consumer to satisfy such needs and wants of a specific customer segments
with an emphasis on profitability, ensuring the optimum use of resources available to the
organization.

Today’s market is enormously more complex. Domestic markets, one time safe from foreign
invaders, are now happy hunting grounds of giant global corporations. Major striders in
technology have considerably shortened time and distance. New products are launched at an
astonishing pace and are available world wide in a short time. Communication media are
proliferating new distribution channels and formats keep appearing. Competitors everywhere and
hungry.

(Elements of the modern marketing system)

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Company
Marketers

Suppliers

Marketing
Intermediary
End users

Competitors

Marketing Mix is the by-product of the customer oriented marketing approach. After identifying
the market and gathering the basic information about it, the next step in the direction of the
market programming is to decide upon the instruments and the strategy the needs of the customer
and challenges of the rival sellers.
According to W.J.Stanton, “Marketing mix is a combination of our elements- product, pricing,
structure, distribution system and promotional activities used to satisfy the needs of an
organization’s target, markets and at the same time achieve its marketing objectives. Every
business enterprise has to determine its marketing mix for the satisfaction needs of customers.
Marketing mix represents a building of decisions in 4 areas-Products

Pricing
Promotion
Physical distribution
Marketing mix is the marketing manager’s instruments for the attainment of marketing goals. It
is composed of 4 ingredients-
1-Product

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2-Price
3-Promotional activities
4-Distribution
The basic purpose of marketing mix is to satisfy the needs and wants of the customers in the
most effective manner. As the needs of the customers and the environmental factors change, the
marketing mix also changes. So ultimately it is the consumer who is to be satisfied.

Price
Least price
Discounts
Allowances
Payment period
Credit terms

Product
Variety
Quality design Place
TARGET Channels
Brand name
CUSTOMERS Coverage
Packaging
Services Assortments
Intended Locations
Positioning Inventory

Promotion
Advertising
Personal selling
Sales Promotion
Public relations

ABOUT PEPSICO.

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PEPSI-COLA, most commonly called Pepsi, is a soft drink produced by Pepsi-Co, which is sold
world wide in stores, restaurants, vending machines. The brand was trademarked on June 16,
1903, through the drinks was first made on August 16, 1898, by pharmacist Caleb Bradham.
Similar to Coca-Cola, its major rival, Pepsi was originally intended to cure stomach pains.
Pepsi-Cola was first made in New born, North Carolina, in the United States in the early 1890s
by pharmacist Caleb Bradhan. On August 28, 1898, “Brad’s Drink” was changed to” Pepsi-Cola”
and later trademarked on June 16, 1903. PepsiCo was established in 1965 through the merger of
Pepsi Cola and Frito lays. Tropicana was acquired in 1998 and PepsiCo merged with the
quarker oats company including Gatorade in 2001.
PepsiCo is a world leader in convenient foods and beverages, with revenues more than $39
billion and over 1, 53,000 employees. The consists of snacks business of Frito-Lay. North
America and the beverage and food businesses of PepsiCo which includes PepsiCo
Beverages, North America and Gatorade.

Many of PepsiCo’s brand names are over 100 years old, but the corporation is relatively young,
PepsiCo was founded in 1965 through the merger of PepsiCo merged with the Quacker Oats
Company, including Gatorade, in 2001.

PepsiCo’s success is the result of superior products, high standards of performance, distinct
competitive strategies and the high integrity of our people.

Our mission is to be the world’s premier consumer products company, focused on convenient
foods and beverages. We seek to healthy financial rewards to investors as we provide
opportunities for growth and enrichment to our employees, our business partners and
communities in whom we operate and in everything we do; we strive for honesty, fairness and
integrity.

As Pepsi was initially intended to cure stomach pains, many believe Bradham coined the name
Pepsi from either the condition Dyspepsia (stomachache or indigestion) or the possible one time
use of Pepsin root as an ingredient (often used to cure upset stomach). It was made of carbonated

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water, sugar, vanilla, rare oils and cola nuts. Whether the original recipe included the enzyme
pepsin or not is disputed.

Marketing
In 1975, PepsiCo introduced the Pepsi challenge marketing campaign where PepsiCo site up a
blind testing between Pepsi Cola and rival Coca Cola. During these blind taste tests, the majority
of participants picked Pepsi as the better tasting of the two drinks. PepsiCo took the advantage of
the campaign with television commercials reporting the test results to the public.
In 1996, PepsiCo launched the highly successful Pepsi Stuff marketing strategy, in 2002; the
strategy was cited by Promo Magazine as one of the 16 “Ageless Wonders” that “helped redefine
promotion marketing”. (Source-promo Magazine, 200.).

Pepsi has attempted marketing many different flavours of the drink; however, many were quickly
discontinued amidst poor sales. Crystal Pepsi was introduced in 1992 and sold until 9193 as a
rival to New Coke (which was also a failure).Many found the clear drink to be disconcerting;
through it tasted similar to the original. PepsiCo attempted the drink again with the Pepsi Blue in
mid 2002 and later withdrew it from the market in 2004.

Partnerships
PepsiCo has also formed partnerships with several brands it doesn’t own. In order to distribute
these or market them with its own brands.
• Elma Chips, leader of the Brazilian chips market
• Frappuccino
• Strabucks Double Shot
• Starbucks Iced Coffee
• Mandarin (license)
• D & G (license)
• Lipton Brisk
• Lipton Original Iced Tea

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• Lipton Iced Tea
• Ben & Jerry’s Milkshakes
• Dole Juices (license)
• Sunny Digital (produced by PepsiCo for Procter & Gamble)

PepsiCo. in India

A woman walking up on a sidewalk in bijapur, India under a Pepsi advertisement.


PepsiCo gained entry to India in 1988 by creating a joint venture with the Punjab government
owned Punjab Agro-Industrial Corporation (PAIC) and Voltas India Limited.
This joint Venture marketed and sold Lehar Pepsi until 1991 when the use of foreign brands was
allowed. PepsiCo brought out its partners and ended the joint venture in 1994. Others claim that
firstly Pepsi was branded from import in India in 1970 for having refused the list of its
ingredients and in 1993, the ban was lifted with Pepsi arriving in the market shortly afterwards.
These controversies are a remainder of “India’s sometimes acrimonious relationship with huge
multinational companies”. Indeed, some argue that PepsiCo and the Coca-Cola Company have

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been major targets in part because they are well known foreign companies that draw plenty of
attention.

In 2003, the Center for Science and Environment (CSE), a non-governmental organization in
New Delhi, said aerated waters produced by soft drinks manufacturers in India, including
multinational giants like PepsiCo and Coca Cola, contain toxins including lindane, DDT,
Malathion and chlorpyrifos-Pesticides that can contribute to cancer, tested products including
Coke, Pepsi, 7up, Mirinda, Fanta, Thums up, Limka, Sprite, Slice, Mountain dew, Twister. CSE
found that the Indian produce Pepsi soft drinks had 36times the pesticide residues permitted
under European Union regulations, Coca Cola’s 30times. CSE said it had tested the same
products in the US and found no such residues. However, this was the European standard for
water not for other drinks. No law bans the presence of pesticides in drinks in India.

The Coca Cola Company and the PepsiCo angrily denied allegations that their products
manufactured in India contained toxin levels far above the norms permitted in the developed
world. But an Indian parliamentary committee, in 2004, backed up CSE’s findings and a
government appointed committee is now trying to develop the world’s first pesticides standards
for soft drinks. Coke and PepsiCo opposed the move, arguing that lab tests aren’t reliable.

Rivalry with Coca Cola

While some people claim that Pepsi tastes exactly the same as Coca Cola, others say
they can tell a difference in the two sodas. In the past, the difference in taste between Pepsi and
Coca Cola was even greater than it is today.
In 1985, the Coca Cola Company, aimed much publicity, changed the formula. Some authorities
believe that New Coke, as the reformulated drink came to be known as, was invented specifically
to respond to Pepsi. Numerous blind taste tests were suggested that more consumers preferred
the taste of Pepsi (which is believed to have more lemon oil, uses vanillion rather than vanilla) to

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Coke. In state tests, drinkers were more likely to respond positively to sweeter drinks, and Pepsi
had this advantage over Coca Cola.

Coca Cola outsells Pepsi in the US overall because V is sold exclusively in more locations, such
as restaurants that sell Coca Cola, but not Pepsi. In locations where Pepsi and Coca Cola are sold
side by side, Pepsi outsells Coca Cola. Coca Cola still outsells Pepsi in almost all areas of the
world. Saudi Arabia and Canadian provinces of Prince Edward Island, Newfoundland and
Labrador, Ontario and Quebec are some of the few exceptions.

BRAND POSITIONING

The distinctive position that a brand adopts in it competitive environment to ensure that
individuals in its target market can tell the brand apart from others. Positioning involves the
careful manipulation of every element of the marketing mix.

Brand – Positioning in the people’s Minds

The importance of an image has become an emotional part of every


one. A brand name represents the image, character and personality of a brand. A brand name
should be clear, lucid. Easy to remember, distinct from the competition and should not be generic
to the category. It should become customer’s Top of the mind brand (TOMB). Most successful
brand names would satisfy these criterions to quite an extent. Brand loyalty is one thing which

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has made the branding more popular. As some one rightly said “Brand loyalty is not dead, it’s
just more like loyalty to a girl/boyfriend than loyalty to a husband/wife”.

Some brand names such as Coca-Cola by itself does not represent anything until it is positioned
with the proper communication and image that represents what it stands for. On the other hand, a
brand name like McDonalds represents western origins while a brand name like Honda
represents Japanese efficiency, culture and personality. Hence, brand names that are linked to
associations of their origins or product will create first impression to the user. On the other hand,
brands like Pepsi on its own may not mean anything until the image and character of the brand is
communicated to the market.

Brand positioning is all about identifying the optimal location in our costumers’ minds for
our Brand and our competitors proper positioning makes it easier to facilitate
understanding of our Brand.

Product positioning is an important strategy for achieving differential advantages. Positioning


reflects the “place” a product occupies in a market or segment. A successful position has
characteristics that are both differentiating and important to consumers

Every product has some sort of position-whether intended or not, position based upon consumer
perceptions, which may or may not reflect reality. A position is effectively built by
communicating a consistent message to consumers about the product and where it fits into the
market-through advertising, brand name and servicing.

Positioning is inextricably linked with market segmentation. You can’t define a good poison until
you have divided the market into unique segments and selected your target segments. Three key
research issues must be addressed:

What is your current position?

What position do you want to have?

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How do you create a new positioning?

The right positioning based on strategy, product, price, market segmentation and promotion is the
prime ingredient for all effective marketing plans. To reach the goal of strategic positioning, that
is to differentiate the company’s offer positively from its competitors; its platform has to be clear
and comprehensible. Further more, the positioning statement has to be transformed consistently
in the communications. Since all marketing communications are founded on the positioning, an
inadequate targeting can inflict damage to a brand and result unforeseen expenses.

Brands are a company’s most significant asset. Companies with stronger brands earn higher
returns due to the higher market expectations and increased buyer confidence. To create value,
brands must built on existing corporate assets and then be envisioned with a strong personality
that in corporate distinctive customers-focused benefits-rationed, as well as emotional.

For effective returns, branding must be an integral objective in the agenda of any corporate
strategy, and consistently deliver and expand on its promise at all employee and costumer
platforms. To increase brand equity, the strategic vision must also ensure that the measurable
dimensions of brand value are consistent and on target regarding promise, awareness, perceived
quality and utilized brand loyalty amongst employees and costumers.

That is why a strategic and thoroughly implemented branding program is a crucial element of
every corporate strategy, from the simplest to the most global and complex.

Brand Equity The sum of all distinguishing qualities of a brand, drawn from all relevant
stakeholders, that result in personal commitment to and demand for the brand; these
differentiating thoughts and feelings make the brand valued and valuable.

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Brand Equity Protection Is the implementation of strategies to reduce risk and liability from the
effects attributable to counterfeiting, diversion, tampering and theft so that the differentiating
thoughts and feelings about the brand are maintained and remain valued and valuable.

Brand image The customer’s net “out-take” from the brand. For users this is based on practical
experience of the product or service concerned (informed impressions) and how well this meets
expectations; for non-users it is based almost entirely upon uninformed impressions, attitudes
and beliefs.

Brand positioning helps marketing and advertising professionals differentiate their product and
give it a distinct advantage in an overcrowded global market. It explores the concepts and
principles involved in developing sound positioning strategy and discuss practical application, as
well as how to:
• Secure competitive advantage
• Use celebrity endorsements to market products
• Establish brand positioning on the internet
• And much more!

COLA WARS: PEPSI VERSUS COCACOLA

1) What attributes and benefits do soft drinks offer?


Which are physical and which are psychological?
Which are essential and which are consumers willing to be flexible on?
2) Why did people react so strongly when New Coke was introduced?
3) Comment on the design of the New Coke. What would you have changed?

OFFERS BY PEPSI CO
To whom will we offer it?
What price will we change?

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How will we let them know about our offers?
How/where will we engage in exchange with them?
Whom will we compete with?

HOW TO KNOW WHAT CUSTOMERS WANT


Ask direct questions about preference:
What brand do you prefer?
What interest rate would you like?
What annual fee would you like?
What credit limit would you like?

SUGGESTIONS

• To improve the distribution system,


 Dealers’ network should be scanned on the basis of area coverage to motivate and
fulfill the demand of each outlet.
 Distribution should be in a proper interval of time, so that there is no shortage of
products in the market.
 Retailers are not getting the package through sales man Company should
supervise whether the benefit goes to the target retailers.
• Brand is not affected but service and direct selling abilities of sales forces are the key
weapons to enhance sales.
• Refilling of a stock should be effectively made by supplying products in the right time
and right mode of transportation.
• The logistics department should have their planning in accordance with the requirement
to ensure the transportation of adequate target fixed for each area by the quantities to the
right outlet at the right time.

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• Time to time salesman should be trained with innovative skills for better performance,
having sole aim of customer satisfaction.
• Efforts should be made to break CCX monopoly to mix and promote mix counters to
PEPSI monopoly.
• As the customers believe in product quality, sellers of the company should be develop
perception in their mind of the customers by various advertisings.
• Distributor should inform to all retailers about the various schemes, which introduced by
the Company.
• Schemes should reach the retailers more often and in time.CEs should meet the
grievances of retailers from time to time.
• Outdoor media like hoardings, signs, posters and kiosks should be promoted at the
outlets.
• Cooling equipment should be provided to manage the inventory in desired condition and
state.
• Offer and facilities should be distributed in such a way that it reaches the customers
rather than getting limited within the retailers and distributors.
• Radio jingles should be made ready by mixing prominent Oriya music to attract the
masses.
• Various quiz and game shows should be organized at club house, educational institution
and shopping malls for attracting crowed.
• Arrangement of Pepsi night in the city by bringing prominent celebrities for a huge crowd
to spread the popularity of the brand and the taste.

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CONCLUSION

The aim of our project was to learn and observe the brand positioning of PEPSI CO.
We selected this organization because we were interested in the success story of the company
and about the main bases of difference between the two main soft drink brand of the country;
i.e.-PEPSI & COCACOLA.

Our observation was that the demand of Thums Up is more than other products. After going
through all the market research and survey, it was found that market share of PEPSI is higher
than the COCACOLA.

PCL should take immediate steps to improve the standard of the sales and services. Public
relation should be enhanced to be closer to the stake holders. Support for advertisement should
be recorded by the organization to be closer to the consumers and also the taste of the product
should be taken care of.

While there is a comparatively less market share of PCL in the city, the position of the brand is
much good outside the state where there is more demand of Pepsi and its products that coke. The
market share of Pepsi is much more than that of Coca Cola in overall.

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BIBLIOGRAPHY

 Philips Kotler Principle of Marketing


Gary Armstrong Eleventh Edition.

 V.S.P. Rao Strategic Management,


V.Hari Krishna Text and Cases.

 V.S. Ramaswamy Marketing Management,


S.Namakumari Planning and implementation.

 A.Dam Rajender The Real Pepsi,


The Real Story
Journals & Magazines.

 Website www. Pepsi.com


www.pepsiindiaholding.com
www.google.com
www.wikepedia.org
www.pepsizone.com

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