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PEPSI Stamford University Bangladesh


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LETTER OF TRANSMITAL

December 21, 2010


Md. rabiul kabir
Assistant Professor
Department of Business Administration
Stamford University, Bangladesh.

Subject: Consumer Attitude towards The PEPSI Cola In the soft drink
industry of Bangladesh.

Dear Sir,
I’m glad to submit this report on “Consumer Attitude towards The PEPSI
Cola” which you have assigned for me. In order to prepare this report, I have
collected information from visiting the home pages of Pepsi cola and other
sources.

I’m very much grateful to you for giving me the opportunity to find out and
gain knowledge on this aspect of soft drink industry in Bangladesh. Writing
this report is an experience for me which will help me in our practical life in
future. I would like to thank you for providing me with such opportunity.
Sincerely yours

----------------------
Humayun Rashid

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DECLARATION

I hereby declare that the thesis Report on “Consumer Attitude towards


the PEPSI Cola In the soft drink industry of Bangladesh” submitted in
partial fulfillment of the academic requirement for the Department of
Master of Business Administration Program of Stamford University
Bangladesh. This report has not been submitted by me before for any
degree, diploma, title or recognition. It is persuade under the supervision of
Md. rabiul kabir, Thesis Supervisor, Department of Business Administration,
Stamford University Bangladesh.

………………………………..

(Humayun Rashid)

Id No: MBA 04011155

Batch No: 40th

Master of Business Administration

Stamford University Bangladesh

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LETTER OF RECOGNITION

I hereby certify that the present work entitled “Consumer Attitude

towards the PEPSI Cola In the soft drink industry of Bangladesh” in the

fulfillment of the requirements for MBA is an original contribution to

the existing beverage industry knowledge carried out by Humayun

Rashid under my guidance and supervision. No part of the Thesis

Report has been submitted for any degree, diploma, title or

recognition before.

He is permitted to submit the Thesis Report. I wish his every success

in life.

................................

(Md. Rabiul kabir)


Assistant Professor

Department of Business Administration,

Stamford University Bangladesh

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ACKNOWLEDGEMENT

Through the thesis report program has to be done individually in a sense of

completion the credit hour but it is quite impossible to do alone without the

sincere and outmost co-operation of some individuals. It is a very great and

unique pleasure to me that I have got a chance to thank some individuals for

their help and encouragement to make the thesis report successful. In this

study, I received help from different people. I express an appreciation for

their sincere and wholehearted co-operation in preparing in this report.

Firstly I would like to thank my supervisor Mr. Md. Rabiul kabir


, Assistant Professor, Department of Business Administration in Stamford

University Bangladesh. For his guidance, inspiration and constructive

suggestions with the report as well as the period of my thesis report

submission in the university. I would like to take the opportunity to thanks

Ms. Nadia Farhana who have helped me from time to time in during my thesis

report prepares period.

Finally I want to express my gratitude to all the member of my family who

has always inspired me to make the job what it is today. Their supports are

always a source of inspiration for me.

Thanks to you all,

Humayun Rashid

Department Of Business Administration

Stamford University Bangladesh.

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EXECUTIVE SUMMARY
Pepsi is a carbonated soft drink produced and manufactured by PepsiCo. The
drink was first made in the 1890s by pharmacist Caleb Bradham in New Bern,
North Carolina. The brand was trademarked on June 16, 1903. There have
been many Pepsi variants produced over the years since 1898. Bradham
sought to create a fountain drink that was delicious and would aid in
digestion and boost energy. The original trademark application for Pepsi-Cola
was filed on September 23, 1902 with registration approved on June 16,
1903. In the application's statement, Caleb Bradham describes the
trademark as an, "arbitrary hyphenated word "PEPSI-COLA," and indicated
that the mark was in continuous use for his business since August 1, 1901.
During the Great Depression, Pepsi gained popularity following the
introduction in 1936 of a 12-ounce bottle. Initially priced at 10 cents, sales
were slow, but when the price was slashed to five cents, sales increased
substantially. With a radio advertising campaign featuring the jingle "Pepsi-
Cola hits the spot / Twelve full ounces, that's a lot / Twice as much for a
nickel, too / Pepsi-Cola is the drink for you," arranged in such a way that the
jingle never ends. Pepsi encouraged price-watching consumers to switch,
obliquely referring to the Coca-Cola standard of six ounces per bottle for
the price of five cents (a nickel), instead of the 12 ounces Pepsi sold at the
same price. Coming at a time of economic crisis, the campaign succeeded in
boosting Pepsi's status. In 1937 500,000,000 bottles of Pepsi were
consumed. From 1936 to 1938, Pepsi-Cola's profits doubled. Walter Mack
was named the new President of Pepsi-Cola and guided the company through
the 1940s. Mack, who supported progressive causes, noticed that the
company's strategy of using advertising for a general audience either
ignored African Americans or used ethnic stereotypes in portraying blacks.
He realized African Americans were an untapped niche market and that
Pepsi stood to gain market share by targeting its advertising directly
towards them. In 1975, Pepsi introduced the Pepsi Challenge marketing
campaign where PepsiCo set up a blind tasting 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 soft drinks. PepsiCo took great
advantage of the campaign with television commercials reporting the results
to the public.

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T A B L E OF C O N T E N T

Chapter-1
Page No
1.0 Background of the Report 09-12
1.1 Origin of the Report 09
1.2 Scope of the Study 09
1.3 Statement of the problem 09
1.4 Methodology 10
1.5 Objective 10
1.6 Source & Method of data collection 11
1.7 Limitations 11

Chapter-2
2.0 Pepsi History 13-17

Chapter-3
3.0 Pepsi Market Coverage 18-25
3.1 U.S. Marker 19
3.2 Australian Market 21
3.3 African Market 22
3.4 Russian Market 22
3.5 Eastern Europe Market 23
3.6 Asian Market 24

Chapter-4
4.0 Marketing Mix of Pepsi 26-48
4.1 Product of Pepsi 29
4.2 Pricing Situation 33
4.3 Place 36
4.4 Promotion 37

Chapter-5
5.0 Brand Evaluation 49-55
5.1 Name 50
5.2 Logo 51
5.3 Slogan 52
5.4 Symbol 53
5.5 Color 53
5.6 Packaging 53
5.7 Mix & Match of Brand Element 54
5.8 Pepsi Quality Dimension Measure 55
5.9 Value Innovation 55

Chapter-6
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6.0 Product Differentiation 56-62

Chapter-7
7.0 Sales Evaluation 63-67

Chapter-8
8.0 Value & Position Evaluation 68-76
8.1 Perceived Value & Brand Sense 69
8.2 Pepsi Positioning 70
8.3 Secondary Brand Association 71
8.4 BCG Matrix 73
8.5 SWOT Analysis 74
8.6 Brand Identity & Value Proposition 75
8.7 Competitive Scenario 76

Chapter-9
8.0 Consumer Attitude Evaluation 77-84
9.1 Attitude Measurement Questioner 78
9.2 Attitude Component & Manifestation 81
9.3 Measuring Attitude Component 83
8.4 BCG Matrix 73
8.5 SWOT Analysis 74
8.6 Brand Identity & Value Proposition 75
8.7 Competitive Scenario 76

Chapter-10
10.0 Recommendations, Conclusion & Reference 85-88
10.1 Recommendation 86
10.2 Conclusion 87
10.3 Reference 88

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Chapter: 01
Introduction

1.0 Background of the Report

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1.1 Origin of the Report:
The Project Work is a precondition for the completion of the Masters of

Business Administration Program of Stamford University, Bangladesh. Each

student has to work on a research project over the period completion of the

project work. The assigned topic for my project work is” Attitude

Measurement of Pepsi Market.” The project topic has been assigned by me

with the consent of my project instructor Md. Kamruzzaman (Assistant

Professor Department of Business Administration, Stamford University,

Bangladesh) and approved by him.

1.2 Scope of the Study


Study of this report is confined only the consumer’s attitude towards PEPSI

Cola. Basically attitudes have three components, these are- cognitive

component, affective component and behavioral component. Through the

survey I just try to find out the attitude towards the PEPSI Cola in the soft

drink industry of Bangladesh.

1.3 Statement of the Problem


The behavior that consumers display in searching for, purchasing, using,

evaluating, and disposing of products and services that they expect will

satisfy their needs is called consumer behavior. Beverage industry is a fast

growing market in Bangladesh and different companies are taking different

marketing strategies to penetrate the market. In this term paper I will try

to find out consumer’s attitude towards PEPSI Cola.

1.4 Methodology:

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This study was carried out both on the basis of primary and secondary data.

For the primary data I administered an unstructured questionnaire survey

with some students of Stamford University Bangladesh and conduct the

telephone interview with the current students of other reputed private

universities, and some of the prospecting students who are willing to get

admission in the private universities and also with some of the students of

public universities to known about their opinion about Pepsi. For secondary

data I have gone through several different web sites of the Pepsi, Diet

Pepsi, and their catalogs.

1.5 Objectives

The objective of the report are given below-

 To analyze the current soft drinks market in Bangladesh.

 To analyze the attitude component and manifestation.

 To analyze the attitude component relative to the PEPSI Cola.

1.6 Sources and methods of data Collection

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For the report on customer attitude of PEPSI Cola I have chosen following

data collection methods:

1. Primary data collection methods-

 Questionnaire: For data collection methods I prepared a set of

questionnaire to collect data from customer who consume drinks on

regular basis or occasionally.

2. Review of Secondary data-

 Annual report of PEPSI COLA: I have collected and reviewed an

annual report of PEPSI COLA.

 Internet search: I have search the web site of PEPSI.

1.7 Limitations
Certain limitations are faced while prepare this term paper is –

• Due to time constraint I could not collect data properly and make the

report a more resourceful one.

• During the fill up the questionnaire most of the respondent may not

give the proper information.

• Political condition was so terrible so I can’t go to the company to know

about their information.

As the political condition was so terrible I focus students for my survey and
depend on Internet.

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Chapter: 02
Pepsi History

2.0 History

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The drink is the invention of Caleb Bradham, a pharmacist and drugstore
owner in New Bern, North Carolina. The summer of 1898, as usual, was hot
and humid in New Bern, North Carolina. So a young pharmacist named Caleb
Bradham began experimenting with combinations of spices, juices, and syrups
trying to create a refreshing new drink to serve his customers. He
succeeded beyond all expectations because he invented the beverage known
around the world as Pepsi-Cola.

Caleb Bradham knew that to keep people returning to his


pharmacy, he would have to turn it into a gathering place.
He did so by concocting his own special beverage, a soft
drink. His creation, a unique mixture of kola nut extract,
vanilla and rareoils, became so popular his customers
named it "Brad's Drink." Caleb decided to rename it
"Pepsi-Cola," and advertised his new soft drink. People
responded, and sales of Pepsi-Cola started to grow,
convincing him that he should form a company to market
the new beverage.

In 1902, he launched the Pepsi-Cola Company in the back room of his


pharmacy, and applied to the U.S. Patent Office for a trademark. At first,
he mixed the syrup himself and sold it exclusively through soda fountains.
But soon Caleb recognized that a greater opportunity existed to bottle Pepsi
so that people could drink it anywhere.

The business began to grow, and on June 16, 1903, "Pepsi-Cola" was officially
registered with the U.S. Patent Office. That year, Caleb sold 7,968 gallons
of syrup, using the theme line "Exhilarating, Invigorating, Aids Digestion."
He also began awarding franchises to bottle Pepsi to independent investors,
whose number grew from just two in 1905, in the cities of Charlotte and
Durham, North Carolina, to 15 the following year, and 40 by 1907. By the end
of 1910, there were Pepsi-Cola franchises in 24 states.

Pepsi-Cola's first bottling line resulted from some less-than-sophisticated


engineering in the back room of Caleb's pharmacy. Building a strong
franchise system was one of Caleb's greatest achievements. Local Pepsi-Cola
bottlers, entrepreneurial in spirit and dedicated to the product's success,
provided a sturdy foundation. They were the cornerstone of the Pepsi-Cola
enterprise. By 1907, the new company was selling more than 100,000 gallons

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of syrup per year.Growth was phenomenal, and in 1909 Caleb erected a
headquarters so spectacular that the town of New Bern pictured it on a
postcard. Famous racing car driver Barney Oldfield endorsed Pepsi in
newspaper ads as "A bully drink...refreshing, invigorating, a fine bracer
before a race."

The previous year, Pepsi had been one of the first companies in the United
States to switch from horse-drawn transport to motor vehicles, and Caleb's
business expertise captured widespread attention. He was even mentioned as
a possible candidate for Governor. A 1913 editorial in the Greensboro Patriot
praised him for his "keen and energetic business sense."

1902 Bradham applies to the U.S. Patent Office for a trademark for the
Pepsi-Cola name.

1903 In keeping with its origin as a pharmacist's concoction, Bradham's


advertising praises his drink as "Exhilarating, invigorating, aids digestion."

1905 A new logo appears, the first change from the original created in 1898.

1906 The logo is redesigned and a new slogan added: "The original pure food
drink." The trademark is registered in Canada.

PEPSI-COLA BOTTLING PLANTS IN 1906:


Fayetteville,
Wilson, NC Charlotte, NC Wilmington, NC Washington, NC
NC
Greensboro,
Tarboro, NC Kinston, NC Raleigh, NC New Bern, NC
NC
Renserverte,
Darlington, NC Norfolk, NC Suffolk, VA Huntington, WV
WV

1954 "The Light Refreshment" evolves to incorporate "Refreshing Without


Filling."

1961 Pepsi further refines its target audience, recognizing the increasing
importance of the younger, post-war generation. "Now its Pepsi, for those
who think Young" defines youth as a state of mind as much as a chronological
age, maintaining the brand's appeal to all market segments.

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1964 A new product, Diet Pepsi, is introduced into Pepsi-Cola advertising.

1966 Diet Pepsi's first independent campaign, "Girlwatchers," focuses on


the cosmetic benefits of the low-calorie cola. The "Girlwatchers" musical
theme becomes a Top 40 hit. Advertising for another new product, Mountain
Dew, a regional brand acquired in 1964, airs for the first time, built around
the instantly recognizable tag line, "Ya-Hoo, Mountain Dew!"

1982 With all the evidence showing that Pepsi's taste is superior, the only
question remaining is how to add that message to Pepsi Generation
advertising. The answer? "Pepsi's got your Taste for Life!," a triumphant
celebration of great times and great taste.

1983 The soft drink market grows more competitive, but for Pepsi drinkers,
the battle is won. The time is right and so is their soft drink. It's got to be
"Pepsi Now!"

1989 "The Choice of a New Generation" theme expands to categorize Pepsi


users as "A Generation Ahead!"

1991 "You got the Right one Baby" is modified to "You got the Right one
Baby, Uh-Huh!" The "Uh-Huh Girls" join Ray Charles as back-up singers and a
campaign soon to become the most popular advertising in America is on its
way. Supermodel Cindy Crawford stars in an award-winning commercial made
to introduce Pepsi's updated logo and package graphics.

1993 "Be Young, Have fun, Drink Pepsi" advertising starring basketball
superstar Shaquille O'Neal is rated as best in U.S.

1995 - In a new campaign, the company declares "Nothing else is a Pepsi" and
takes top honors in the year's national advertising championship.

1998 - Pepsi celebrates its 100th anniversary. PepsiCo. Chairman and CEO
Roger A. Enrico donates his salary to provide scholarships for children of
PepsiCo employees. Pepsi introduces PepsiOne - the first one calorie drink
without that diet taste!
2000
Faith Hill, Sammy Sosa and Ken Griffey Jr. - three of the hottest names in
entertainment - signed new deals to endorse Pepsi-Cola products. Singing
sensation Faith Hill, who has rocked the charts with her top 10 hits, stared

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in a new "Joy of Cola" ad with "Pepsi Girl" Hallie Eisenberg. The ad debuted
during the March 26 Academy Awards broadcast. Major League Baseball All-
Stars Sammy Sosa and Ken Griffey Jr. also stepped up to bat in new Pepsi
commercials. In addition to the ads, each slugger was be involved in Pepsi's
"Takin' it to the Fields" youth baseball and softball programs, as well as
appeared on in-store promotional materials for the brand. From Boston to
San Francisco and everywhere in between, consumers' cola choice is clear. In
more than 30 markets currently conducting the Pepsi Challenge, the tastes
of Pepsi and Pepsi ONE are preferred over Coke products in every market,
especially in Philadelphia, Dayton, Tucson, San Antonio and Seattle. In a
cross-promotion designed to further engage youth in our products,
consumers who take the Pepsi Challenge receive "starter points" for this
summer's "Choose Your Music" program. Participants can also have their
photos taken and posted online at www.pepsi.com, driving traffic to and
awareness of Pepsi's Internet site.

2001
Pop superstar Britney Spears appears in her first Pepsi commercial during
the 2001 Academy Awards. The high-energy spot also runs online, where
more than 2 million fans click their way to Britney's own version of "The Joy
of Pepsi." Pepsi Stuff.com lets consumers redeem points from specially
marked packages of Pepsi products for more than a half-million cool prizes,
and proves to be Pepsi's most popular online promotion ever. Colombian
singing sensation Shakira stars in a series of new commercials for Pepsi just
as her debut English-language album hits stores in the U.S. At the same
time, Pepsi agrees to sponsor the Latin pop star's worldwide concert tour.
Pepsi unveils its FunWraps Factory, letting consumers personalize Pepsi cans
with fun designs and unique messages. With a wide variety of sports,
entertainment and holiday images to choose from, Pepsi drinkers begin
creating their own can labels for just about any occasion. Pepsi puts "a little
twist on a great thing", introducing lemon-flavored Pepsi Twist and Diet
Pepsi Twist. The product launch marks the return to lemon-flavored colas
for Pepsi, which distributed Pepsi Light until the mid-1980s.

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Chapter: 03
Pepsi Market Coverage

3.0 Pepsi market

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Pepsi is one of the leading cola brand in the market. In 2004 it crosses its
rivalry Coca cola by 4% in overall market. To analyze the market of Pepsi we
divide its market in to different region. These are:
1. US Market
2. Australian Market
3. African Market
4. Russian Market
5. European Market
6. Asian Market

3.1 US MARKET

Product those running in US market are:

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Headquartered in New York, the US-based PepsiCo is one of the world's


leading beverage and snacks food companies. In its 2002 annual report, the
company claimed to have the largest share in the US beverage markets.
PepsiCo served diverse markets with its six group companies - Frito-Lay
North America, Frito-Lay International, Pepsi-Cola North America, Pepsi
Beverages International, Gatorade/Tropicana North America and Quaker
Foods North America (Refer Exhibit I). For the fiscal year ended December
2002, PepsiCo Inc. (PepsiCo) reported revenues of $25.11 billion, an increase
of 6.8% from the 2002 revenues of $23.51 billion (Refer Exhibit II).
Analysts felt that one of the main reasons for the company's massive
growth over the decades and the leadership status it has acquired in almost
all its business segments was PepsiCo's efficient distribution and logistics
management operations. Depending on the product involved, PepsiCo chose
between the various standard distribution methods employed, such as the
Direct Store Delivery (DSD) system, the broker warehouse system, the
vending and food service system and the pre-sell method. PepsiCo adapted
these systems to the local conditions of the various countries in which it
operated. PepsiCo's highly advanced distribution system was well supported
by state-of-the-art logistics systems. PepsiCo upgraded its technical
capabilities consistently in order to strengthen its logistics management

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activities. PepsiCo's bottlers employed wireless technologies to strengthen
their distribution system and effectively serve the customers in the
markets in which they operated. However, with its vast worldwide
operational network and good market presence globally, PepsiCo still did not
put enough effort into integrating and streamlining the operations of its
various group companies/divisions. This was undoubtedly a difficult task, but
the then CEO Roger Enrico (Enrico) announced the launch of the 'Power of
One' program through which, he said, the company would achieve this
streamlining of operations, in 1998. PepsiCo would generate savings worth
millions of dollars if the program was implemented well. However, the
program had not got off the ground even by early 2004.

3.2 AUSTRALIAN MARKET

PepsiCo. was formed in 1939 of Burse Limited, one of Australia’s oldest


corporations. The company is a leading to a concentration on its core
businesses of beverages and snack foods.

In 1952 Burse made its first beverages investment overseas with the
acquisition of Pepsi bottling franchises in Vienna
and Graz, Austria. In 1989 Pepsi sold its snack
foods interests to Marshall Foods and, as a
result, now focuses entirely on beverages. Pepsi
rapidly expanded its global business to include
operations in many European and Asia-Pacific
countries. In 1998 the European operations were
established as a separate European
Headquartered anchor bottler company and Pepsi
now focuses exclusively on the Asia-Pacific
region. Pepsi is the principal Pepsi licensee in
Australia and independently manufactures its own soft drinks and mineral
waters. Pepsi was introduced to Australia in 1937 and by early 1938 the first
manufacturing plant began operating in Sydney. Business began slowly, but
the arrival of American troops to Australia in 1942 had significant impact on
both sales and market acceptance. Licenses were granted to various bottlers
in the 1940's and 1950's. CCA entered the Australian beverage industry in
1964 and by 1990 had acquired dall the Australian. Pepsi bottling licensed
territories in Australia, except for those in part of the Northern Territory.

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Key Brands

1. Crystal Pepsi
2. Pepsi Ice
3. Pepsi Lime
4. Pepsi Max Twist
5. Pepsi Cafechino

3.3 AFRICAN MARKET

Established in Johannesburg in 1948 and now operational in almost every


African market, the Pepsi Company is Africa's one of the important soft
drinks. Every day, about 58 million servings of Pepsi products are consumed
in Africa. These are produced and distributed by over 170 bottling and
canning plants, and then sold by 900,000 retail partners, making the Pepsi
system Africa's largest consumer goods provider. With over 60,000
employees, the Pepsi system in Africa is also the continent's largest private
In 2004, The Pepsi Company decided to redesign its African strategic
business unit in order to drive top line growth in key markets, priorities
investments and make faster decisions. Africa practice, which has been
retained by the company for the past three years to provide a range of
services, was asked by Pepsi.

3.4 RUSSIAN MARKET

In 1972, Pepsi signed an agreement with the Soviet Union which made it the
first Western product to be sold to consumers in Russia. This was a
landmark agreement and gave Pepsi the first-mover advantage. Presently,
Pepsi has 23 plants in the former Soviet Union and is the leader in the soft-
drink industry in Russia. Pepsi outsells Coca-Cola by 6 to 1 and is seen as a
local brand. Also, Pepsi must counter trade its concentrate with Russia's
Stolichnaya vodka since rubles are not tradable on the world market.
However, Pepsi has also had some problems. There has not been an increase
in brand loyalty for Pepsi since its advertising blitz in Russia, even though it
has produced commercials tailored to the Russian market and has sponsored
television concerts. On the positive side, Pepsi may be leading Coca-Cola due
to the big difference in price between the two colas. While Pepsi sells for
Rb250 (25 cents), Coca-Cola sells for Rb450. For the economy size, Pepsi
sells 2 liters for Rb1,300, but Coca-Cola sells 1.5 liters for Rb1,800. Coca-

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Cola, on the other hand, only moved into Russia 2 years ago and is
manufactured locally in Moscow and St. Petersburg under a license. Despite
investing $85 million in these two bottling plants, they do not perceive Coca-
Cola as a premium brand in the Russian market. Moreover, they see it as a
"foreign" brand in Russia. Lastly, while Coca-Cola's bottle and label give it a
high-class image, it is unable to capture market share.

3.5 EASTERN EUROPE MARKET

Both Coca-Cola and Pepsi are trying to have their colas available in as many
locations in Eastern Europe, but at a cost which consumers would be willing
to pay. The concepts which are becoming more important in Eastern Europe
include color, product attractiveness visibility, and display quality. In
addition, availability (meeting local demand by increasing production locally),
acceptability (building brand equity), and afford ability (pricing higher than
local brands, but adapting to local conditions) are the key factors for
Eastern Europe. Both companies hope that their western images and brand
products will help to boost their sales. Coca-Cola has a universal message and
campaign since it feels that Eastern Europe is part of the world and should
not be treated differently. Currently, it is difficult to say who is winning the
cola wars since the data from the relatively new market research firms
focusses on major cities. Pepsi had a commanding 4 to 1 lead in 1992 in the
former Soviet Union. Without this area, Coca-Cola has a 17% share versus
Pepsi's 12% share in the soft drink industry. While both companies have
been in Eastern Europe for many years, the main task now is to develop the
market. Coca-Cola and Pepsi are in a dogfight, but both will end up as
winners. In the end, the ultimate winner will be the Eastern Europeans who
will have access to some of the world's best soft drinks.

3.6 ASIAN MARKET

China market

Coca-Cola originally entered China in 1927, but left in 1949 when the
Communists took over the country. In 1979, it returned with a shipment of
30,000 cases from Hong Kong. Pepsi, which only entered China in 1982, is

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trying to be the leading soft-drink producer in China by the year 2000. Even
though Coca-Cola's head start in China has given it an edge, there is plenty
of room in the country for both companies. Currently, Coca-Cola and Pepsi
control 15% and 7% of the Chinese soft-drink market respectively. The
Chinese market presents unique problems. For example, 2,800 local soft-
drink bottlers, many of whom are state-owned, control nearly 75% of the
Chinese market. Those bottlers located in remote areas have virtual
monopolies (The Economist, 67). The battle for China will take place in the
interior regions. These areas are unpenetrated as most of the foreign soft-
drink producers have set up in the booming coastal cities. China's high
transportation and distribution costs mean that plants must be located close
to their markets. Otherwise, in a country of China's size, Coca-Cola and
Pepsi risk pricing their products as luxury items. In China, it is easier and
politically safer to expand through joint ventures with local bottlers. It is
expected that, in China, the company that wins the cola war will win based on
the locations of their bottling plants and the quality of the partners they
choose (The Economist, 67). Coca-Cola is bottled at 13 sites across China;
five of these are state-owned. Also, Coca-Cola owns 2 concentrate plants in
China. By 1996, Coca-Cola and its joint venture partners will have invested
nearly $500 million in China. Pepsi is planning a $350 million expansion plan
that will add 10 new plants. Both companies are ploughing profits straight
back into expansion. They reason that any returns will not come until the
next century.

Indian Market

Coca-Cola controlled the Indian market until 1977, when the Janata Party
beat the Congress Party of then Prime Minister Indira Gandhi. To punish
Coca-Cola's principal bottler, a Congress Party stalwart and longtime Gandhi
supporter, the Janata government demanded that Coca-Cola transfer its
syrup formula to an Indian subsidiary (Chakravarty, 43). Coca-Cola balked
and withdrew from the country. India, now left without both Coca-Cola and
Pepsi, became a protected market. In the meantime, India's two largest
soft-drink producers have gotten rich and lazy while controlling 80% of the
Indian market. These domestic producers have little incentive to expand
their plants or develop the country's potentially enormous market
(Chakravarty, 43). Some analysts reason that the Indian market may be
more lucrative than the Chinese market. India has 850 million potential

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customers, 150 million of whom comprise the middle class, with disposable
income to spend on cars, VCRs, and computers. The Indian middle class is
growing at 10% per year. To obtain the license for India, Pepsi had to export
$5 of locally-made products for every $1 of materials it imported, and it had
to agree to help the Indian government to initiate a second agricultural
revolution. Pepsi has also had to take on Indian partners. In the end, all
parties involved seem to come out ahead: Pepsi gains access to a potentially
enormous market; Indian bottlers will get to serve a market that is
expanding rapidly because of competition; and the Indian consumer benefits
from the competition from abroad and will pay lower prices. Even before the
first bottle of Pepsi hit the shelves, local soft drink manufacturers
increased the size of their bottles by 25% without raising costs.

US beverage giant PepsiCo has targeted 6 countries in Asia out of 29 world


wide that it says it needs to be among the top-selling brands in 2002.

Asian markets targeted are China, South Korea, Thailand, India, the
Philippines, and Vietnam.

According to Ron McEachern, president of PepsiCo Beverages International


(PBI) Asia, "...Operations in those countries will get significant support from
us, including marketing budgets and product development..."

Mr McEachern said that soft drinks accounted for only 20% of beverage
consumption in Asia, unlike in North America where they were the most
popular drink.

Diversification is also a strategy - Pepsi-Co aims to become a 'total


beverage' operation, introducing not only new soft drinks but also other
products. One example is the launch of Tropicana brand fruit juice later on
this year.

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Chapter: 04
Marketing Mix of PEPSI

4.0 Marketing Mix

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Qualities of the product are the main actors to take part in attitudes
component. If the product quality is good people will satisfy and they
will purchase in future and recommend it to others. As result new
people orientation towards product will be good and he becomes the
loyal customer of that product.

Bangladesh is a country of river, where most of the people are related with
agriculture. In this country people believe in different religion and
culture. Different religions have different festivals. Consumer Behavior
is directly related with religion in terms of products that are
symbolically and ritualistically associated with the celebration of
religious holidays and occasion like Eid, Ramadan, Puja, Chrismas etc. In
that time people consume huge amount of soft drinks. During the
Ramadan, Eid and other festivals, PEPSI cola use different kinds of
packaging label with the purpose of attracting the common people and
simply creating a difference. They also give different kinds of
advertise for these types of occasion. As a result these religious
festivals are uses for conditioning people with PEPSI Cola.

In the marketing mix most of the information I show is based on foreign


country context. But few of the information is in bangladesh contex.
Because of the lack of information and support I take the support of
internet. As long as information regarding product, price, promotion and
distribution is shown below.

The Marketing Mix model (also known as the 4 P's) can be used by marketers
as a tool to assist in defining the marketing strategy. Marketing managers
use this method to attempt to generate the optimal response in the target
market by blending 4 variables in an optimal way.

It is important to understand that the Marketing Mix principles are


controllable variables. The Marketing Mix can be adjusted on a frequent
basis to meet the changing needs of the target group and the other
dynamics of the marketing environment. In order to achieve the marketing
objectives Pepsi have a strategy that includes different elements - the
various parts of the marketing mix. Calling it a mix reminds Pepsi to try and
get the balance right between the different elements.

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The four P's of the marketing mix of Pepsi:

• Product
• Price
• Place (distribution)
• Promotion

Figure: Marketing Mix

These four P's are the parameters that the marketing manager can control,
subject to the internal and external constraints of the marketing
environment. The goal is to make decisions that center the four P's on the
customers in the target market in order to create perceived value and
generate a positive response.

• Product becomes Customer needs and wants

• Price becomes Cost to the user

• Place becomes Convenience

• Promotion becomes Communication

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4.1 Product of Pepsi
Product is the solution of a particular problem. In this case, defining the
characteristics of product or service to meet the customers' needs that can
satisfy them.

List of Pepsi types that business all over the world

Colas Related

• Crystal Pepsi: Discontinued clear version of cola; introduced in 1992 and


sold until 1993.
• Crystal by Pepsi: Discontinued (non-cola) citrus flavored reformulation
of Crystal Pepsi.
• Pepsi: PepsiCo's signature cola flavor.
• Pepsi AM: Contains more caffeine than a regular Pepsi and marketed as a
morning drink. No longer produced.
• Pepsi Blue: A blue colored, (non-cola) fruity variety of soda. No longer
produced.
• Pepsi Fire: a limited edition variety which is sold in Guam, Saipan,
Thailand, Mexico, Malaysia, and the Philippines. Pepsi Fire is a cinnamon
flavored cola. (see also the Pepsi Max cinnamon edition for Christmas
2005)
• Pepsi Free introduced in 1982 by PepsiCo as the first major-brand
caffeine-free cola and is today sold as Caffeine-Free Pepsi and Caffeine-
Free Diet Pepsi.
• Pepsi Gold: Limited edition gold colored variant as part of a 2006 FIFA
World Cup promotion. Released in Thailand and several other countries.
In 2006, released in Romania, Poland, Sweden, Denmark, Norway,
Jamaica, Lebanon and Venezuela.
• Pepsi Holiday Spice: a limited edition variety which the company began
selling November 1, 2004 in the U.S.A. for an eight-week period (it has
not been sold since). It is flavored with a seasonal finish of ginger and
cinnamon.
• Pepsi Ice Pepsi with an Icy Mint flavor. Sold in Guam, Thailand, Malaysia,
and the Philippines.
• Pepsi Lime: with lime flavor added, introduced onto the market in the
spring of 2005.

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• Pepsi Max Available outside the United States.
o Pepsi Max Cool lemon
o Pepsi Max Cinnamon (a limited edition Cinnamon flavour Pepsi
released Christmas 2005)
o Pepsi Max Cino (UK - Pepsi Max with coffee)
o Pepsi Max Gold (only available in Finland, Iceland, Norway and the
UK)
o Pepsi Max Punch (a dark red Pepsi cola with Cinnamon and Ginger -
limited edition in the UK market for Christmas 2005 - available
September to December)
o Pepsi Max Twist
• Pepsi NEX: A zero calorie Pepsi developed by Suntory and sold only in
Japan
• Pepsi Raging Raspberry
• Pepsi Razzleberry
• Pepsi Red a red colored Pepsi from Japan developed by Suntory.
• Pepsi Samba: Pepsi with tropical flavors
• Pepsi Si: The word si used in its Spanish context ("yes") and printed on
cans. Used as a marketing gimmick in predominantly Hispanic areas.
• Pepsi Strawberry Burst
• Pepsi Tropical Chill
• Pepsi Twist: a lemon flavored variety
o Pepsi Twistão Sold during summertime in Brazil, it's a Pepsi with a
lemon flavor stronger than regular Pepsi Twist. "Twistão", in
Portuguese, is the augmentative of "Twist".
• Pepsi Vanilla: Released in the U.S. in 2003, it is Pepsi's answer to Vanilla
Coke. Contains vanilla extract as well as both natural and artificial
flavors.
o Pepsi Ice Cream in Russia
• Pepsi Wild Cherry: a cherry flavored variety, introduced in 1988.
Originally called "Wild Cherry Pepsi", its name was changed along with the
formula in 2005.
• Pepsi X Energy Cola: contains more caffeine than regular Pepsi, and also
contains guaranine. Pepsi is the first major cola brand to have an energy
drink line extension. The cola-based product has a unique flavor and a
reddish tint. It is sold in several countries worldwide.

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Coffee Related

• Pepsi Cafechino: Pepsi with a touch of coffee only sold in India.


• Pepsi Cappuccino: Cappuccino flavored sold in Eastern Europe.
• Pepsi Kona: a short-lived product that was market tested in the Lehigh
Valley and Philadelphia, Pennsylvania areas between 1994 and 1996. A mix
of Pepsi-Cola and coffee, it is said to have tasted more like coffee than
cola.
• Pepsi Latte
• Pepsi Max Cappucino: Only available in France, Finland, Norway, Ireland
and the UK.
o Pepsi Max Coffee Cino Pepsi Max Cappucino variant currently
being sold in the UK.
• Pepsi Tarik: a mix between coffee and cola. Currently, it's only available
in Malaysia and Singapore. Tarik is a word in the Malay language which
means "to pull."

Diet Related

• Diet Crystal Pepsi: Low-calorie version of Crystal Pepsi.


• Diet Pepsi: Low-calorie version of Pepsi.
o Diet Pepsi AM: Sugar-free version of Pepsi AM, and introduced in
1987. No longer produced.
• Pepsi Edge: contains half the carbohydrates, calories and sugars of a
normal Pepsi, and is flavored by Splenda. Introduced in 2004, and
discontinued in 2005. It was featured on an episode of The Apprentice 2
in which teams had to design a prototype bottle.
o Pepsi Avantage: the French name for Pepsi Edge, sold exclusively
during 2005 in the province of Quebec.
• Diet Pepsi Free (now known as Caffeine-Free Diet Pepsi)
• Diet Pepsi Jazz a fruit flavored cola only avalible in diet styles.
Introduced in July 2006. Avalible in "Black Cherry and French Vanilla"
and "Strawberries and Cream"
• Diet Pepsi Kona
• Pepsi Light: Lemon-flavored Diet Pepsi sold in the 1970s and 1980s
o Diet Pepsi Light

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• Diet Pepsi Lime
• Pepsi ONE: An alternative to Diet Pepsi, with one calorie.
• Diet Pepsi Twist
o Diet Pepsi Twistão (see above)
• Diet Pepsi Vanilla
• Diet Pepsi Wild Cherry Not widely available until 2005, when Wild
Cherry Pepsi was reformulated.
• Pepsi XL a mid-calorie cola targeted at transitioners (those who were
making the move from sugared colas to diet colas) and males.

4.2 Pricing Situation


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How much are the intended customers willing to pay for the products of
Pepsi? Here the company decides on a pricing strategy - do not let it just
happen! Deciding on a pricing strategy a firm has to consider many variables.
So, Pepsi also follows the way that fits for them.

 Pricing strategy (skim, penetration, etc.)


 Suggested retail price
 Volume discounts and wholesale pricing
 Cash and early payment discounts
 Seasonal pricing
 Bundling
 Price flexibility
 Price discrimination

A company must set an initial price when it develops a new product and it
introduces it into a new distribution channel. Different companies set their
pricing policies by pursuing any of the following objectives: survival,
maximum profit, and maximum market share or product-quality leadership.
PBL wants to maximize PEPSI’s market share. Their pricing strategy is to
gain profit through selling more volume at lower price. They aim for quality
at standard price. Compare to two main competitors - Coca-Cola and RC,
PEPSI has charged its products at standard price with respect to its
standard. Prices of the main competitors and PEPSI in different product
categories are given below:
Bottle Size Pepsi RC Coke Virgin

250 Ml Tk. 12 N/A Tk. 12 N/A


500 Ml PET Tk. 22 Tk. 20 Tk. 22 Tk. 20
1 liter PET Tk. 40 Tk. 35 Tk. 40 Tk. 35
2 liter PET Tk. 65 Tk. 60 Tk. 65 TK. 60(1.5 litr)
2.25 liter PET Tk. 75 N/A Tk. 75 N/A
Can Tk. 25 Tk. 20 Tk. 25 Tk. 20
Diet Pepsi can is Tk. 22, Mountain dew 500 ML TK. 22, Teem 500Ml TK. 22.
Table 01: Price list of different product categories

3.4 Product Life Cycle


PEPSI

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Introduction Growth Maturity Decline


TIME

Annual revenue of PEPSI Cola is approximately TK.315 crore which is 90% of


the sales budget of TK.350 crore and market share is 26%. According to our
gathered data, PEPSI Cola exists at the maturity stage of its product life
cycle. Current Market Situation

Rank 2005 Brand Market Share


1 Coke 17.9
2 Pepsi 11.5
3 Diet coke (coke) 9.7
4 Mt. Dew (Pepsi) 6.3
5 Diet Pepsi (Pepsi) 6.1
6 Sprite (Coke) 5.7
7 Dr. Pepper 5.6
8 CF Diet Coke (Coke) 1.7
9 Diet Dr. Pepper 1.4
10 Sierra Mist (Pepsi) 1.4

Market Share 1Coke

2Pepsi
1.4
1.71.4
5.6 17.9
3D iet coke
5.7 (coke)
6.1 4M t. Dew
(Pepsi)
6.3 11.5
5D iet Pepsi
9.7
Existing (Pepsi) New
Products Products
6Sprite(Coke)

Existing 1. Market 3. Product


Penetration 7Dr.D
P epper
evelopment
Markets

2. Market
New 4. Diversification
Development
Markets

31

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Market Penetration: Here Pepsi charge a standard price so that people can
buy the product. Through advertising also Pepsi gain the market share.

Market Development: To develop the market Pepsi do some promotional


activity. They do campaign, coupon, fair also some gift hamper for the
benefit of the consumer.

Product development: Pepsi introduce some new product to the market to


expand the market and get well feed back from it. Like Mountain dew, Max,
7up etc.

Diversification: Pepsi divert form its product line to expand the market.
Now Pepsi introduce new product like Mountain Dew which get good response
from every country.

4.3 Place

Place or Distribution

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Distribution means the availability of products at the right place, at the
right time, in the right quantities. Distribution is about getting the products
to the customer. Therefore, Pepsi assigns its distribution model based on
the following factors. These are:

• Distribution channels
• Market coverage (inclusive, selective, or exclusive distribution)
• Specific channel members
• Inventory management
• Warehousing
• Distribution centers
• Order processing
• Transportation

Pepsi use the same distribution channel for all products. Pepsi follows the
following channel to reach its products to the target customers:

• Product Consistency: Pepsi use the same distribution channel for all
products. So their product consistency is very high.

Thus that’s why we get every where the Pepsi product.

Company DistributorsWholesaler/ Retailer Consumer

4.4 Promotional Activities


Pepsi Warner Bros. Glass:

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By far the most frequent question we receive concerns the 1973 Pepsi
Warner Bros. glass promotions. These glasses were first distributed by
Carroll's Restaurants (later to become Burger King) in upstate New York in
the summer of 1974. According to Dave Leonard of Promotions ETC. who put
the promotions together, they were a blockbuster success and led to dozens
of additional glass promotions during the next 10 years by Pepsi-Cola and
other competitors. This really was the "golden era" of character glass
promotions. A complete list of the 18 different Warner Bros. character
Pepsi glasses with prices can be found on the prices page. The photo above
shows the difference between the Brockway and Federal glasses. Brockway
glasses are heavier and are slightly tapered, while Federal glasses are
thinner and have a straighter side. There are some minor color variations
between the two versions too, as shown in the two Tasmanian Devil glasses.
The Brockway LUN (logo under name) variation is only available in six
characters on Brockway 16 oz. tumblers. The 15 oz. Federal version (notice
that it is slightly shorter) are much more difficult to locate and scarce
characters can bring over $300.00 each. Finally there are also Federal and
Brockway 12 oz. versions. Distinguishing between the two is difficult for
beginning collectors, although the values are about the same.

Pepsi Campaign in India:


Pepsi’s integrated marketing campaign in
India that centered on World Cup cricket
last year has been adjudged the best
campaign amongst 333 entries from around

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the world in the annual Globes Awards sponsored by the Marketing Agencies
Association (MAA) Worldwide.

At a glittering ceremony in Florida, US, recently, Pepsi walked away with the
top honours - MAA’s Grand Prix award for best campaign overall, plus an
individual Globe for best sponsorship or tie-in campaign of the year. Vibha
Rishi, VP (Marketing), PepsiCo, New York, accepted the award at a reception
and dinner in Florida to honor outstanding marketing campaigns from around
the world.

According to Rajeev Bakshi, chairman, Pepsi Foods Pvt Ltd, “We have been
receiving commendations for the Pepsi World Cup campaign from various
quarters. However, it is indeed extremely delightful that a highly prestigious
international forum such as the MAA Annual Globes Awards has bestowed
the top award for the World Cup campaign.”

The 2004 Globes roster features winning campaigns from Argentina,


Australia, Brazil, Canada, Chile, England, India, Indonesia, Israel, Mexico,
Poland, Portugal, Singapore, Thailand, Turkey and the US. This year’s
competition drew an all-time high of 333 campaigns from 26 countries,
making the 2004 Globes turnout the largest ever, with a record number of
entries for the third year in a row.

To drive sales, Pepsi mounted a campaign that aligned its brand with World
Cup fever and set a theme that connected with the youth, the spokesperson
said. Changing its colors to match India’s Team Blue and turning out 2.5
million souvenir bottles for World Cup 2003, Pepsi deployed a remarkable
array of big-brand tie-ins, sponsorships and such below-the-line initiatives as
contests, instant-wins, music CDs, Team India merchandise and more, the
spokesperson added.

Pepsi offer Buy one gets one Free:

 In September 2005 Pepsi offer a new

"great tasting" energy soda “FRESCA” with

will get by consumers if they buy a can of

Mountain Dew.

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 In June 2005 Pepsi offer a free CD which will collect by consumers if

they buy a bottle of “VAULT” a product of Pepsi.

 Pepsi-Cola Bottling Company of Charlotte, North

Carolina is celebrating and remembering 100

years of services this year. Commemorative

Pepsi & Diet Pepsi cans were unveiled to the

public on April 14th, and only available in a limited

area in the Charlotte, NC area. 1905-2005

 Pepsi will once again be promoting the new Star

Wars movie which is to be released in May 2005.

They have planned some cool promotions like a

limited edition Darth Dew Slurpee at 7-Eleven

stores.

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 Pepsi Sports Series 14oz Collectable Can, which will offer different types

of prizes.

 Pepsi (USA) released a 4 can set to help celebrate 4th of July. Mountain

Dew offer Special can for the movie Hulk.

Pepsi doing School Promotion:

For instance, Pepsi Foods is one company which targets children using both
above-the-line and below-the-line promotions. As a part of in-school
promotions, Pepsi India has launched a school contact programme, which has
taken 425 schools across 14 cities including Delhi, Chandigarh, Ludhiana,
Amritsar, Jalandhar, Agra, Jaipur, Dehradun, Lucknow, Camper, Mumbai and
Pune. As part of the programme, six-overs-a-side cricket matches will be
played between different teams in each school and the winners will get
`attractive prizes.' The latest above-the-line strategy adopted by Pepsi

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Foods is built around the movie Spiderman-2, which offers Spiderman
memorabilia in exchange for Mirinda crowns and PET labels.

ITC Foods Ltd is promoting its Sunfeast biscuits across 1,000 schools in the
country as part of its Sunfeast school programme. Considering the need to
garner visibility among children, the company has earmarked around Rs 20
lakh for this below-the-line project and their target is to reach one million
children. There are around 500 schools in the Western region which are
willing to provide space and time for any kind of demonstrations. A point to
be noted is that direct marketing activities by corporate companies rarely
take place in municipal schools. Most in-school promotions are done in
upmarket areas specially targeted at children from middle-class and upper
middle-class families, the objective being exploiting pester power.

Pepsi Price promotions:


Price promotions are also commonly known as" price discounting". These can
be done in two ways:
(1) A discount to the normal selling price of a product, or
(2) More of the product at the normal price.
Pepsi can do both of this for promoting their brand in the market.
Coupons
Coupons are another, very versatile, way of offering a discount. Consider the
following examples of the use of coupons:
- On a pack to encourage repeat purchase

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- In coupon books sent out in newspapers allowing customers to redeem the
coupon at a retailer
- A cut-out coupon as part of an advert
- On the back of till receipts. The key objective with a coupon promotion is
to maximize the redemption rate – this is the proportion of customers
actually using the coupon.

It must be ensured when a company uses coupons that the retailers must
hold sufficient stock to avoid customer disappointment.

Point of Sale Displays:


Pepsi can do also point of purchase promotion for their brand.

Gift with Purchase:


Pepsi offer different types of gift with their product in different location.

Some of the pictures are highlighted.

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Sponsor by Pepsi:

Pepsi can sponsor different program/event in different occasion. Some of

the pictures are highlighted.

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Pepsi in concert:

Billboard Used by Pepsi:

Pepsi use billboard for promote their brand.

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Mobile Ads used by Pepsi:

Pepsi also use mobile ads in different vehicles to promote their brands.

Print Ads of Pepsi: Pepsi has a massive number of print ads to promote
their brand. More than 100 years Pepsi Company comes up with
different type of print ads with different massage for their
customer. Some of their print ads are given below.

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Diet Pepsi Promotion:


New Diet Pepsi spot is cute and quirky.The first TV advertising from Diet
Pepsi since DDB, New York, grabbed the business from
Omnivore sibling BBDO looks nothing like what preceded it for
about the last 40 years. There are no celebrities to speak of.
No pop music No glitzy productions.

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TV Commercials of Pepsi:

Pepsi has a long golden history of TV commercials from their establishment

of soft drink market with different appeal. As the years gone Pepsi Company

used different celebrities according to the demand of their viewers.

Radio Commercials of Pepsi:

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Although IMC of Pepsi based on TV commercials, before 1950 they used

radio commercials as a prominent media for the advertisement.

Chapter: 05
Brand Evaluation

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5.0 Brand Element


A brand element consists of eight things. These are:
• Name
• Logo
• Slogan
• Symbol
• Character
• Sounds/Jingles
• Color
• Packaging

To do the brand element mix and match we have to consider two things.
First one is a brand element such as name, logo, slogan, symbol, character,
sounds, color and packaging. On the other hand we have to select Choice
criteria such as memorability, meaningfulness, transferability, adaptability
and protectability.

5.1 Name
Pepsi (1898 – Present)

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5.2 Logo

"Pepsi" logo (used from 1906-1939 in several


slightly different variations).

The international Pepsi logo. Also used as logo


from 1991-1998.

The "Pepsi" logo (used from 1998- present).

Pepsi is one of the world's most famous brands much like its rival Coca Cola.
Pepsi Cola was originally called Brad's Drink after its creator, Caleb
Bradham, a pharmacist from North Carolina. Pepsi was a carbonated soft
drink he created to serve his drugstore's customers. The new name, Pepsi-
Cola, was first used on August 28. The Pepsi logo is a simple globe with the
Pepsi colors in the background and the word Pepsi in the foreground. Pepsi
has changed its logo and its slogans a number of times since its introduction
in 1898.

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5.3 Slogan
It's clear in looking at the slogans over the years that Pepsi have very different
targeting strategies. Coke is touting itself as the original, the authentic, and
appealing to a sense of tradition, positioning itself as an integral part of daily
American life. Pepsi, on the other hand, is promoting itself as something new, young,
and hip, which seems a little odd after over 100 years. But Coke was first, after all.
Pepsi has always targeted the youth market more aggressively than Coke. Slogans
of Pepsi are given below:

1903 - Exhilarating, Invigorating, Aids Digestion


1907 - Original Pure Food Drink
1909 - Delicious and Healthful
1915 - For All Thirsts - Pepsi-Cola
1919 - Pepsi-Cola - It Makes You Scintillate
1920 - Drink Pepsi Cola. It will satisfy you
1928 - Peps You Up!
1932 - Sparkling, Delicious
1934 - Refreshing and Healthful
1939 - Twice As Much For A Nickel Too Listen
1943 - Bigger Drink, Better Taste
1949 - Why take less when Pepsi's best?
1950 - More Bounce to the Ounce
1950 - The Light Refreshment
1954 - Refreshing Without Filling
1958 - Be Sociable, have a Pepsi
1961 - Now It's Pepsi, For Those Who Think Young
1963 - Come Alive! You're In the Pepsi Generation Listen
1967 - Pepsi Pours It On
1969 - You've Got a Lot to Live and Pepsi's Got a Lot to Give Listen
1973 - Join the Pepsi People Feelin' Free Listen
1975 - Have a Pepsi Day Listen
1978 - Catch That Pepsi Spirit Listen
1981 - Pepsi's Got Your Taste For Life!
1983 - Pepsi Now!

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1984 - Pepsi, the Choice of a New Generation
1992 - Gotta Have It
1993 - Be Young, Have Fun, Drink Pepsi
1995 - Nothing else is a Pepsi
1999 - The Joy of Cola Listen
2001 - The joy of Pepsi
2004 - Life to the max (Pepsi Max).

5.4 Symbol
Pepsi use there traditional symbol which is shape like a ball
divided in to two parts. The upper part is red in color and the
below part is blue in color. And in middle is the color of white.

Figure: Pepsi symbol

5.5 Color

The brand color of Pepsi is blue. From the beginning Pepsi


use blue color as of its brand color.

5.6 Packaging

Packaging is basically the different shape of bottles of Pepsi which is


changing time to time. There are given some samples of Pepsi bottle package:

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5.7 Mix and Match the Brand Element


of Pepsi

Brand Elements Name Logo Slogan Symbol Color Packaging

“The joy of
Choice Criteria Pepsi”

Memorability Yes Yes In some Yes Yes Yes


  extent    

Meaningfulness Yes No Yes No No No


     

Transferability Yes Yes Yes Yes Yes Yes


     

Adaptability Yes Yes Yes Yes Yes Yes


     

Protectability Yes Yes Yes Yes Yes Yes


     

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5.8 Pepsi quality dimension measure


Performance: Pepsi has an excellent product performance with a status of
more than 100 years.

Feature: Pepsi has unique features in their product. In their soft drinks
sector they have variety of flavor with different taste.

Conformance Quality: Pepsi has good conformance quality as they meet the
expectation what their customer wants.

Reliability: Pepsi Company is a reliable company with a good status they are
doing business more than 100 years. Their product is reliable to their
consumers.

Durability: Pepsi product is durable to all the consumers. It has a certain


durable time to consume the product.

Serviceability: There is basically no serviceability when it is FMCG.

Style and Design: Pepsi product has very lucrative style and design.

5.9 Value Innovation


Innovation – Key weapon to success of Pepsi

Pepsi mainly focus on innovation in their product to make it success in the


market. Result shows that Pepsi take over the cola market over Coca cola
from last two years because of their value innovation.

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Product innovation is the core area where Pepsi Company focuses to create
innovation. Their main target is to create new product of change the taste
or flavor of existing product, which will create differentiation.

Chapter: 06
Product Differentiation

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6.0 Product Differentiation


Pepsi-Cola North America announced two new additions to its expanding
beverage portfolio -- Dole Sparklers and Sierra Mist Cranberry Splash. Dole
Sparklers, an entirely new line of sparkling juice drinks, launches this fall in
four unique flavors. Sierra Mist Cranberry Splash, a limited-time flavor
extension available exclusively this holiday season, launches in November.

6.1 Dole Sparklers

Dole Sparklers, an invigorating, low-sugar sparkling juice, is made with real


fruit, B-complex vitamins and 50% less sugar and calories than a regular
juice drink. The light, refreshing beverage comes in four flavors:
pomegranate blueberry, orange tangerine, cranberry raspberry and pink
grapefruit. Available in a single-serve, 16.9-oz proprietary plastic bottle with
a distinctive "bubble" design embossed into the packaging, the product
launches in October.

6.2 Sierra Mist Cranberry Splash

Sierra Mist is launching its first limited-time-only offering with Sierra Mist
Cranberry Splash, the crisp lemon-lime soft drink flavored with a hint of
cranberry. Sierra Mist Cranberry Splash will be available for eight weeks,
beginning in November, in packaging that will reflect the spirit of the holiday
season. Supported with national television and radio advertising, Sierra Mist
Cranberry Splash will be available in 20-oz. and two-liter bottles as well as
12-packs of 12-oz. cans. Pepsi in North America with the introduction of
Dole Sparklers, we're providing a light, invigorating sparkling juice that's low
in sugar and calories, but indulgent on taste. Sierra Mist Cranberry Splash is
the ideal beverage for the holiday season, when consumers tend to seek
more variety. From its crisp, unique flavor right down to its festive graphics,
it will make its way to the top of plenty holiday shopping lists this year.
"Pepsi-Cola North America also plans summer launches of Jazz, from Diet
Pepsi, and Ben & Jerry's Milkshakes. Jazz, a new low-calorie cola, comes in
two indulgent flavors: Black Cherry French Vanilla and Strawberries &

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Crème. Rich, indulgent Ben & Jerry's Milkshakes will be available in classic
Ben & Jerry's flavors that consumers know and love.

7 Up

Type 100% Natural Lemon-Lime Soft Drink

Manufacturer Cadburys

Country of Origin United States


Introduced 1929

Variants dnL, 7 Up Plus

Related products Dr Pepper, Sprite

7 Up (or Seven Up) is a brand of a lemon-lime flavored soft drink. The


franchise for the brand is held by Dr Pepper/Seven Up in the United States,
by Britvic in Great Britain, by C&C in Ireland and by PepsiCo in the rest of
the world.The product has been reformulated several times since its launch
in 1929; in 2006, it underwent another reformulation, becoming "100%
Natural" with five ingredients: "filtered carbonated water, high fructose
corn syrup, natural citric acid, natural flavors, natural potassium citrate".

The origin of the 7 up name is not clear. The most popular story is that its
creator named the soft drink after seeing a cattle brand with the number 7
and the letter u. Other rumors suggest that the name reflects the drink's
seven flavors and carbonation that its creator came up with the name while

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playing dice or that even it was the 7th large commercial lemonade brand
that tastes the same.

Pepsi Blue

Type Flavored Cola

Manufacturer PepsiCo, Inc.

Country of Origin USA


Introduced mid-2002
Discontinued 2004 (American market)

Related products Crystal Pepsi, New Coke

Pepsi Blue is a soft drink made by PepsiCo and launched in mid-2002. It is


considered by some to be the company's second equivalent of New Coke,
after the much maligned Crystal Pepsi.The taste of Pepsi Blue is fruity and
much more sugary than regular Cola.Although heavily promoted by PepsiCo
(including advertisements by the pop singer Britney Spears and the bands
Papa Roach and Sev), it is widely seen as a commercial flop as sales remained
low.Even though Pepsi Blue wasn't as popular as PepsiCo thought it would be,
supermarket store-brand clones remain on the market for those who enjoy
the taste. Pepsi Blue still remains on sale in some countries, including Mexico
and Costa Rica. It was withdrawn from the American market in early

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2004.Pepsi Blue was later reintroduced into the Hong Kong market. Its
availability was shortlived in Australia, due to its commercial failure
there.The taste of Pepsi Blue was similar to that of a 7-11 Slurpee.

Pepsi Max

Type Diet Cola

Manufacturer PepsiCo, Inc.

Country of Great Britain, Italy


Origin
Introduced 1993

Variants Pepsi Max Cappuccino, Pepsi


Max Twist, Pepsi Max Punch

Related Coca-Cola C2, Pepsi ONE, Diet


products Pepsi

Pepsi Max is a low-calorie, sugar-free cola sweetened with aspartame,

marketed by PepsiCo as an alternative to regular Pepsi and Diet Pepsi.

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Caffeine-Free Pepsi

Type Caffeine-free Cola

Manufacturer PepsiCo, Inc.

Country of Origin USA


Introduced 1982

Related products Diet Coke

Pepsi Free was introduced in 1982 by PepsiCo as the first major-brand


caffeine-free cola. A sugar-free variant known as Diet Pepsi Free was also
introduced. The Pepsi Free name itself was phased out by 1988, and today
these colas are known simply as Caffeine-Free Pepsi and Caffeine-Free Diet
Pepsi. The term "Free" has been reintroduced by PepsiCo on their Sierra
Mist line in response to Coca-Cola's successful introduction of their Zero
line.

Mountain Dew is a caffeinated sweet citrus-flavored


soft drink produced by PepsiCo, Inc. It was invented
in Marion, VA and first marketed in Knoxville,

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Tennessee in 1948, and across the United States in 1964. When removed
from its characteristic green bottle, Mountain Dew is bright green-yellow
and cloudy. Unlike lemon-lime soft drinks such as Sprite, 7 Up, or Sierra
Mist, Mountain Dew contains concentrated orange juice.

In Bottle Differentiation

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Chapter: 07
Sales Evaluation

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7.0 Sales Data
In the U.S. and Canada, there are three big top line areas of opportunity for
Pepsi. First of all, they start from a position of strength with four anchor
brands that are leaders in their respective segments: brand Pepsi in colas,
Sierra Mist and Mountain Dew in flavors, and Aquafina water in non-carbs.
So in part, top line growth will come from building base business across
those four powerful brand platforms. Second source of growth is from
innovation that brings incremental volume to business. This has a brand
dimension and a package dimension. In single-serve innovation, Pepsi have
developed a three-tiered approach to meet the needs of every type of user.
The 14-ounce package for light use, the 20-ounce for medium use and the 1-
liter package for heartier consumption. On the take-home PET side, we've
had great success with a broad variety of multi-packs and package sizes, and
we'll continue to add packaging options for both CSDs and non-carbs. So, the
combination of building on existing brand portfolio, expanding their
portfolio through innovation and capitalizing on new growth platforms gives
them plenty of promise for their future.

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Financial Data (1996-2000)

Y e a rs 1996 1997 1998 1999 2000


re ve n u e s 20337 20917 22348 20367 20438
ex pens es 18297 18255 19764 17549 17213
n e t in c o m e 1149 2142 1993 2050 2183
s t o c k p ric e s (p e r s h a re ) 34 33 45 42 38
e a rn in g s (p e r s h a re ) (e n d o f 4 rt h q u1a. rt1 7e r) 0 . 9 5 1 .3 1 1 .4 1 .4 5
n e t in c o m e (p e r s h a re ) 0 .7 2 1 .4 1 .3 1 1 .4 1 .5 1
p ro fit m a rg in 8% 13% 12% 14% 16%
n e t in c o m e % c h a n g e s 0 .0 5 0 .0 3 0 .0 7 0.06 0 .0 8
e a rn in g g ro w t h ra t e 0.1 0 .2 8 0 .0 5 0.09 0 .0 5
PEG 310
P / E (P ric e p e r s h a re / e a rn in g s p e r s 2h 9a re ) 3 5
118 900
34 P r o fit M a
46 6 .6
30
760
26

Re v e
30%
25000

0 .2 8

2091
20337
25
20000 %
PEPSI
18297
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Chapter: 08
Value & Position Evaluation

8.1 Perceive Value and Brand sense


Pepsi marketwise different brands according to the prospects’ demand
differently all over the world market. In this way they create and capture

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new demand. Pepsi’s wise management decisions align the whole system of
companies’ activities in pursuit of differentiation and low cost.

The Four-Action Framework

ELIMINATE A New CREATE


Value
Curve
RAISE

In the four-action framework Pepsi cola create multiple product line, raise
brand equity, and reduce competition.
SMELL

TASTE
SIGHT

TOUCH SOUND

A brand must have the following five things. These are Sight, Sound, Touch,
Taste and Smell. Pepsi have three things: taste, smell and sight. It is very
important to have good taste and sight for a soft drink. If the sight and
smell is not attractive consumer won’t feel comfortable while drinking it.
Again for a soft drink better smell is very important. Perhaps it is the single
most important thing. Pepsi has lots of color, smell and taste, which focus
Pepsi’s three main brand senses.
Perceived value

uc
To
h
un
So e
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Bonding

So, if Coke doesn’t have all the things, which we mentioned earlier than it,
will be very difficult to increase their brand equity. And more or less they
have done it very beautifully and that’s why they are now being the market
gainer Pepsi in a drink by having 4% market share more than Coca cola.

8.2 Pepsi positioning


To stay in the market each and every product has some unique value, which
makes the product different than other. But it is not the all. Because it is
more important how you propose your value to your potential customers. To
survive in the market it is very important to come up with a strong IMC
strategy, perhaps it is the most important criteria where marketer should
concentrate more and more. Though product has some value but it can not
assure that it is running successfully in the market. So to be a good
marketer we have to concentrate on IMC to think how we propose our value
to our customer and convert them to our loyal customer.
Value can be proposed in two ways:

 Above the Line (ATL)


 Below the Line (BTL)

To stay as a market leader Pepsi Company can propose their value in both the
ways. In Above the Line strategy they use Television commercials, Radio
Commercials, Event, one to one marketing, public relations and so on.

On the other hand in Below the Line strategy Pepsi can propose their value
by using rural promotion and in other ways.
8.3 Secondary Brand Association:
PEPSI
Brand Endorser
List of celebrity endorser of Pepsi are given below.

• Bamboo (Philippines only) David Beckham

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• Rubens Barrichello (Brazil only) Polly Bergen
• Jackie Chan Roberto Carlos (football player)
• Halle Berry Leslie Cheung
• Rico Blanco (Philippines only) The Corrs
• Barry Bostwick Cindy Crawford
• David Bowie Joan Crawford
• Mariah Carey Dinamo Bucharest
football club
• Cruz Azul football club in Mexico Michael J. Fox
• Billy Crystal The Four Seasons
• Rodney Dangerfield Aretha Franklin
• Denílson (Brazil only) Frederik (Finland only)
• Amr Diab The Friends of Distinction
• P. Diddy Cuba Gooding Jr.
• Bob Dole Delta Goodrem
• Hallie Kate Eisenberg Jeff Gordon
• Elissa Florence Henderson
• Jimmy Fallon Thierry Henry
• Faith Hill Beyoncé Knowles
• Enrique Iglesias Shahrukh Khan (India only)

• S Club 7 Gustavo Kuerten (Brazil


only)
• Avril Lavigne Cláudia Liz (Brazil only)
• Luiza Simões (Brazil only) Los Lonely Boys
• Ananda Lewis Madonna

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• Manchester United football club Menudo
• Janet Jackson (filmed commercials which aired in parts of Asia)
• Michael Jackson (who was badly burned while filming a commercial)
• Ludacris (commercial was pulled from airwaves due to controversy)
• Ray Charles ("You Got the Right One, Baby! UH-HUH!")
• Evandro Mesquita (Brazil only) Jack Osbourne
• Claude Meunier (Quebec only) Kelly Osbourne
• Mis-Teeq Ozzy Osbourne
• Nightwish Real Madrid football club
• Martín Palermo Michael Richards
• Robert Palmer Lionel Richie
• Pelé Rivaldo
• Pepsiman (Japan only) Ronaldinho
• Jericho Rosales (Philippines only) P!nk
• Marie Osmond Shakira
• Sammy Sosa Holly Valance
• Britney Spears Juan Sebastián Verón
• Christina Aguilera Brian Vickers
• Spice Girls Damon Wayans

8.4 BCG Matrix of Pepsi


The Boston Consulting Group Box ("BCG Box") Pepsi Company of Bangladesh:

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Stars: Here Pepsi’s market share & market growth is very high. So Pepsi
needs to HOLD i.e. continue previous level of investment. Stars products of
Pepsi are- Pepsi 1 liter, Pepsi 250Ml can, 7 up 2 liter.

Question Marks: Where Pepsi’s market share is low & market growth is very
high. So Pepsi needs to HARVEST i.e. maintain that kind pf investment which
is necessary. Question Marks product of Pepsi is only Pepsi Can.

Cash Cows: As Pepsi’s market share is high & market growth is low, they
should BUILD i.e. invests more to gain return at high level. Cash Cows
products of Pepsi are- Mountain Dew

Dogs: Here market share & market growth of Pepsi are very low. So Pepsi
should DIVEST i.e. cut the production and kick it out from the product line.
Dogs products of Pepsi are- Teem (Bangladesh)

There are three strategic opportunities –

1. Moderate economic growth in Asia would lift consumer spending


2. Cola consumption in the region had room to grow
3. The price of soft drinks was cheap compared with other beverages.

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8.5 SWOT Analysis of Pepsi

Strength
o Multi-dimensional organization
o Well-establish management
o Sophisticated technology
o High Brand Image
o Financial support from sister concern
o Best advertisements
o Quality product
o Efficient distribution network
Weakness

o More competitions in soft drinks


market.
o Unable to attract the loyal consumers
of Coca-Cola.

Opportunity SWOT Analysis

o Established Brand Image


o Consumer tendency to use Pet bottle.
o Value pricing: Pepsi is able to produce
high quality relatively standard cost.
o Wide market in Bangladesh.
o Strongest and biggest existing
distribution channel.
Threats

o Pepsi has to compete with the existing


reputed companies
o Political instability
o Problem arise dealing with distributor.
(Credit facility)
o Fluctuation of price of raw materials
o The market is becoming saturated

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8.6 Brand Identity and Value
Proposition

Brand Identity

Pepsi itself is a brand-as-person, brand-as-organization, and brand-as-


symbol. So according to David A. Aker’s brand checklist theory Pepsi has
proper brand identity.

Value Proposition

In the value proposition Pepsi is offering same core value from their
beginning and that is “Refreshment and Enjoy”.

Brand Position Cola

Lemon/Lime Traditional

Non-Cola

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8.7 Competitive Scenario
The competition is very much high in soft drink industry. PEPSI Cola is
operating in a oligopoly market where two or three large competitors control
the lion share of that market. The market size of soft drinks in Bangladesh
is around TK.800 Crore per year. Among all soft drinks company, Coca-Cola is
the market leader for many years. It was popular in the past time and still it
has popularity among the large population of Bangladesh. It obtains 31%
market share. After Coca-Cola, Pepsi was the second one; but after
emerging RC, the market share of Pepsi has been reduced to 22%. RC has
been able to move its way up and for the last two years it has been holding
the 2nd position with 26% of the total market. The others like Uro Cola,
Virgin and Suncrest each have market shares equal to or below 10%. There is
another player Mojo who have recently entered in the beverage market. The
major difference of PEPSI with the other brands is that its product
category is more comparatively to others. In case of brand image Pepsi have
more competitive advantage over RC. Since they have more stable and strong
brand image and is a great degree of consumer loyalty the product.

Market Share

6% 5%
Coca Cola
10% 31%
RC
Pepsi
Uro
Virgin
22%
Suncreast
26%

Graph 01: Market Share of different brand

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Chapter: 09
Consumer Attitude Evaluation

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9.1 Attitude Measurement
Questionnaire For Office use only
1. Do you drink Pepsi?
1 2 3 4 5

Strongly Disagree Neutral Agree Strongly


Disagree Agree

2. How many times you drink in a month?

1 2 3 4 5

Strongly Disagree Neutral Agree Strongly


Disagree Agree

3. Will you really like the product or not?

1 2 3 4 5
a
Strongly Disagree Neutral Agree Strongly
Disagree Agree

4. Which product you like most (product line)?

1 2 3 4 5

Strongly Disagree Neutral Agree Strongly


Disagree Agree

5. Does the product is overpriced or not?

1 2 3 4 5

Strongly Disagree Neutral Agree Strongly


Disagree Agree

6. Does the product is really qualitative or not?

1 2 3 4 5

Strongly Disagree Neutral Agree Strongly


Disagree Agree

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7. How much you like compare to other brand?

1 2 3 4 5

Strongly Disagree Neutral Agree Strongly


Disagree Agree

8. Are you really like the taste of the product or not?

1 2 3 4 5

Strongly Disagree Neutral Agree Strongly


Disagree Agree

9. Does the product increases their status or not?

1 2 3 4 5

Strongly Disagree Neutral Agree Strongly


Disagree Agree

10. Reason behind the purchase?

1 2 3 4 5

Strongly Disagree Neutral Agree Strongly


Disagree Agree

11. Likelihood of buying the product in next time?

1 2 3 4 5

Strongly Disagree Neutral Agree Strongly


Disagree Agree

12. Does the price satisfactory to you?

1 2 3 4 5

Strongly Disagree Neutral Agree Strongly


Disagree Agree

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13. Does the outlet is proper in the country?

1 2 3 4 5

Strongly Disagree Neutral Agree Strongly


Disagree Agree

14. Do you think Pepsi need more promotional activities?

1 2 3 4 5

Strongly Disagree Neutral Agree Strongly


Disagree Agree

15. Likelihood of suggesting it to others.


1 2 3 4 5

Strongly Disagree Neutral Agree Strongly


Disagree Agree

1. Please put your suggestion to recover those problems.

………………………………………………………………………………………………………

………………………………………………………………………………………………………

………………………………………………………………………………………………………

Respondent Profile:

Name:

Age:

Profession:

Gender:

THANK YOU

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9.2 Attitude Component and
Manifestation

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Initiator:
Initiator is some stimuli that lead a persons overall orientation toward an
object through component and manifestation. Stimulus is something that
directly related with the product and leads a person towards attitude
component. Actually stimulus is the initiators that shape up of the attitude.
Stimuli are like products, situations, retail outlets, sales personnel,
advertisements etc.

Products:
Qualities of the product are the main actors to take part in attitudes
component. If the product quality is good people will satisfy and they will
purchase in future and recommend it to others. As result new people
orientation towards product will be good and he becomes the loyal customer
of that product.

Situations:
Bangladesh is a country of river, where most of the people are related with
agriculture. In this country people believe in different religion and culture.
Different religions have different festivals. Consumer Behavior is directly
related with religion in terms of products that are symbolically and
ritualistically associated with the celebration of religious holidays and
occasion like Eid, Ramadan, Puja, Chrismas etc. In that time people consume
huge amount of soft drinks. During the Ramadan, Eid and other festivals,
PEPSI cola use different kinds of packaging label with the purpose of
attracting the common people and simply creating a difference. They also
give different kinds of advertise for these types of occasion. As a result
these religious festivals are uses for conditioning people with PEPSI Cola.

Retail outlets:
Availability of the product is also related with the consumer behavior. If the
product is not available in the locality then people will not consume this
product and they may have bad impression about the product. For ensuring
the availability of the product PBL has 101 distributors around the country.
This distributor is always works with in their zone so that people can get
PEPSI frequently from their nearest retail outlets whenever they demand.

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An attitude is an enduring organization of motivation, emotional, perceptional
and cognitive process with respect to some aspect of our environment. It is
a learned predisposition to respond in consistently favorable or unfavorable
manner with respect to a given object. Thus an attitude is the way one
thinks feels and acts towards some aspect of his or her environment.
Attitudes have three components. These components are cognitive
component, affective component and behavioral component. Besides this
attitudes also can be derived by the external and internal factors. External
factors are like culture, subculture, marketing strategy etc. and internal
factors are like motivation, personality, knowledge, beliefs etc. For
measuring the attitudes towards PEPSI Cola we did survey on the cognitive,
affective and behavioral component.

Cognitive Component
The cognitive component consists of a consumer’s beliefs about a product.
For most attitude objects people have a number of beliefs. Beliefs can be
about the emotional benefits of owning or using a product as well as about
objective features. Many beliefs about attributes are evaluative in nature
this are using capacity, style and reliability. In cognitive component part for
measuring attitudes towards PEPSI Cola we choose attributes are like price,
quality, taste, status, calories and use multicast tribute attitude model. For
calculating the attitude we need to assign weight to each attribute. We
assign this weight in the attributes according to the basis of importance to
the consumer. We put weight 30 for the taste, 25 for quality, 20 for price,
and 15 for calories and 10 for status. After calculating the results for each
respondent we take the average result of that result and we get the index
value of 65. This index value of 65 express that product is not perfectly
ideal to the consumer. So according to the result we can say that the
attitude towards the PEPSI Cola is not perfectly satisfactory.

Affective Component
Feelings or emotional reactions to an object represent the affective
component of an attitude. Actually this a vague general feeling developed
without cognitive information or beliefs about a product or it may be results
of several evaluations of the product’s performance on each of several
attributes. For measuring this part we asked few questions to the
respondents related with the attribute of PEPSI Cola. These questions are-

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a. Whether they really like the product or not
b. Whether the product is overpriced or not
c. Whether the product is really qualitative or not
d. Whether they really like the taste of the product or not
e. Whether the product increases their status or not.
According to the response of the respondent we found that 75%
respondents really like the product where as 25% strongly like the product.
On the other hand for the price of the product 37.5% strongly disagree
25% just disagree 12.5% neutral about the price and 25% respondent agree
that the product is over priced for the quality purpose 62.5% respondent
agree that the product is qualitative 25% neutral about the product quality
and 12.5% thinks that the product is not qualitative. When we asked about
the taste 75% respondent said that they like the taste and 25%
respondents strongly like the taste of PEPSI Cola. Lastly in affective part
we asked them about the status in response to that we fund that 75%
respondent are neutral about that and 12.5% thinks that it increase their
status and rest of the percentage disagree with it.
Behavioral Component
The behavioral component of an attitude is one’s tendency to respond in a
certain manner toward an object or activity. A series of decision to purchase
or not purchase the product or to recommend it or other brands to friends,
relatives would reflect the behavioral component of an attitude. For
measuring the behavioral component of the respondent we asked them three
questions. These are
a. Reason behind the purchase
b. Likelihood of buying the product in next time
c. Likelihood of suggesting it to others
According to the response of the first question of behavioral component
87.5% respondent purchase PEPSI Cola for their own likings, not influenced
by others, whereas, 12.5% people said that they purchase PEPSI Cola as
because of their family likings. On the hand when we asked about the
likelihood of buying product in next time, 87.5% respondent said that they
will definitely buy PEPSI Cola in next time and 12.5% will possibly buy in next
time. When we asked about the likelihood of suggesting it to other 62.5%
definitely suggest the product to others, 25% possibly suggest it to others
and 12.5% probably not suggest it to others.

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Chapter: 10
Recommendation, Conclusion and
Reference

10.1 Recommendations

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Based upon our findings of attitude survey of PEPSI Cola, I have
recommended some aspects that can potentially lead to improvements for
PEPSI such as a stronger, more promising market presence and greater
customer satisfaction. These areas that seem to deserve attention are as
follows:

Improve the quality


They can improve their quality, so that they can attract the loyal customer
of Coke and RC.

 Introduction of consumer promotion in Bangladesh


Promotional activities like scratch-card offers, gift offers including toys,
sports items, household items, etc. can help capture the attention of greater
number of consumers and lead to brisk increase in sales, though temporarily.

 More marketing campaign targeting rural consumers


This can greatly encourage drinking of Pepsi even among the village people
who constitute the majority of the Bangladeshi population.

10.2 Conclusion

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Increased demand, economic development and changed life style have

resulted in a great increase in the change the peoples mind and their demand

for buying behavior. Pepsi consumption is still also increasing day by day. Old

Brand and new products of Pepsi increase all over the world. Statistics show

that majority of the people usually prefer Pepsi product more than new

branded product even it charge low price. In Bangladesh, population growth

has been seen as a major factor, but no one looks at the growth of drinking

is also increasing, which has increased tremendously over the last thirty

years. Reasons are increased buying behavior towards the branded product

like Pepsi. Increased trade, commerce and export have also created

additional demand for various types of soft drink product Pepsi is one of

them. On top of that, the life style of the Bangladeshi people particularly

the middle class and elite in the urban areas have been changing very fast

and improving, which has resulted in greater movements and greater use of

branded product in the country. So Pepsi make our culture to a new change.

PEPSI Stamford University Bangladesh


Spring 2010
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10.3 References

Books that I use

Del I. Hawkins Consumer Behavior, Ninth edition

Kotlar Amstrong Principles of Marketing

Malhotra Marketing Research

Cateora Graham International Marketing

Websites that I search


http://www.pepsi.com

http://www.pepsico.com/web_pages/resource/corp_structurepc.html

http://www.greenvillepepsi.com/frames2/caleb.htm

http://www.pepsico.com/web_pages/resource/mission_state.html

http://cac.psu.edu/~slp1/pepsi1.html

http://www.pepsico.com/web_pages/midyear_hl.html

http://www.pepsico.com/web_pages/release053196.html

http://www.pepsico.com/web_pages/1996/stockinfo.html

http://biz.yahoo.com/p/p/pep.html

http://www2.mostnewyork.com/most/archive/97_03/032097/metro_sp/16068.hta

http://www.pepsico.com/web_pages/releases/pcnews5.html

http://www.pathfinder.com/@@@K5PkwYA9eq1miaH/fortune/1997/970303/fst.html

PEPSI Stamford University Bangladesh


Spring 2010