lide1: Presented by: Shana Kok Gwen Campbell Natalie Ryan Scott Squires May 17, 2001 Thesis:

Thesis Pepsis current and past advertising campaigns have been successful in targeting 12-to-21 year olds through using type A andamp; B celebrities, music, humor, sex appeal, and the Internet. History: History PepsiCo Inc.: PepsiCo Inc. Most successful consumer product companies in world. Company consists of: Frito-Lay, Pepsi-Cola Company, and Tropicana Products. - worlds number 2 soft drink company 'Sweet Deal: Spears and Pepsi'. (2001, February 7). Retrieved April 12, 2001 from the World Wide Web:www.wallofsound.go.com www.pepsi.com Pepsi-Cola Company: Pepsi-Cola Company Founded by Caleb Bradham. Brand Pepsi and other Pepsi-Cola products account for one-third of total soft drink sales in the U.S. Available World Wide Web: www.pepsi.com Advertising History: Advertising History Pepsi has continuously focused on the current teen generation. How Pepsi has used humor, music, sex appeal in advertising. Advertising Budget. Ad expenditures for 2001 is $1,800,000,000 BBDO of New York Available World Wide Web: http://www.redbooks.com/Executable/Search/full_c_agency_acc.asp Advertising History: Advertising History 1958 'Be Sociable, Have a Pepsi' 1963 'Come Alive! Youre in the Pepsi Generation' 1967 Pepsi Generation campaign continues 1984 'Pepsi. The Choice of a New Generation' 1985 'New Generation' advertising continues 1992 'Gotta Have It' 1993 'Be Young, Have Fun, Drink Pepsi' 1997 'GeneratioNext' 2000 'Joy of Cola' Available World Wide Web: http://www.pepsi.com/current/help/faq/index_3.html Target Market: Target Market Ages 12-21 Generation Y- Market influence: Generation Y- Market influence Huge Market- 80 million people Spending power- $600 million annually Many Gen Yers do household grocery shopping 90% parents say kids influence what they buy Many work and have their own money to spend They have proven to be brand loyal Gronbach, Ken. (August 2000). 'Generation Y- Not Just Kids'. Direct Marketing Vol. 63 Issue 4, pp. 36). How to reach Generation Y: How to reach Generation Y Creates promotions tailored to their needs and interests Gen Yers like entertainment and music They like to laugh, but not at anothers expense To attract the teen market radio and television should be used They are internet savvy Barrett, Amy. (2000, September 18). 'To Reach The Unreachable Teen'. Business Week (Issue 3699, pp. 78). What does Generation Y like?: What does Generation Y like? Free stuff and discounts Contests/Drawings Music 'Club cards' Team sporting events They are into clothes and the latest styles Teen friendly retail stores and internet site Barrett, Amy. (2000, September 18). 'To Reach The Unreachable Teen'. Business Week (Issue 3699, pp. 78). 'Generation Y Challenges Retailers'. USA Today Magazine (December 2000). (Vol 129, Issue 2667, pp9). Pepsi and Generation Y: Pepsi and Generation Y Pepsi targets Generation Y specifically Current campaigns use effective techniques By targeting 12 to 21 year olds, Pepsi is attempting to establish a loyal Pepsi drinker for life and the largest group of soft drink consumers. McKay, Betsy. 'Facing Slow Sales, Coke and Pepsi Gear Up For New Battle'. Wallstreet Journal (April 16, 2001). Past Advertising Campaigns: Past Advertising Campaigns Michael Jackson: Michael Jackson Michael received the biggest sponsorship from a company in 1983. In 1993 Pepsi had a 'Search for Michael Jackson' campaign. Used musical and sex appeal. (Source: :Michael Jackson Impersonator. Untitled Available on the World Wide Web: http://www.atlanticorient.com/library/michael.htm) Jeff Gordon: Jeff Gordon Made a commercial with Hallie Eisenberg Sells many Pepsi collectable merchandise Drove the Pepsi car in races (Source:Wells, Willams, andamp; Burnett, John, andamp; Moriarty, Sandra. (2000). ADVERTISING: Principles and Practice (5th ed.). New Jersey: Prentice Hall Inc. www.pepsi.com Hallie Eisenberg: Hallie Eisenberg First appeared in a Pepsi commercial in 1998 at age 5. Introduced the 'Joy of Cola' campaign. Starred in commercials with Faith Hill, KISS, and Ken Griffey Jr. Her commercials used humor. (Source: USA TODAY: Ad Track. Curls, attitude pushing Pepsi. Available on the World Wide Web:http://usatoday.com/money/index/ad259.html USA TODAY: Ad Track. Pepsi: Weve got the right star, baby. Available on the World Wide Web:http://www.usatoday.com/money/index/ad313.html) Spice Girls:

Spice Girls Promotional single 'Move Over' available only through Pepsi Used musical and sex appeal As international stars they affected many countries (Source: Wall of sound. Spice Girls Sell Pepsi. Available onthe World Wide Web: http://wallofsound.go.com/archive/news/stories/1571.html ) Current Advertising Campaigns: Current Advertising Campaigns Bob Dole and Pepsi: Bob Dole and Pepsi Bob Dole and his Dog Television commercial for Pepsi premiered during Superbowl 2001 The ad sequence: Ad set on the beach 'Viagra' humor Pepsi as Bob Doles 'little blue friend' Makes him 'feel like a kid again' Bob does a back flip (Source: Burbank, Max. (Retrieved May 10, 2001). 'Bob Dole, Pepsi Pervert: A Critial Analysis'. Ape Cultures coverage of Oscar 2001: the Pepsi Ad. ) Britany Spears: Britany Spears February 6, 2001 Britany signed a contract with Pepsi (between $40 and $100 million) The Campaign Includes: -2 television commercials -billboards -magazines -point of purchase -Pepsi holds a co-sponsorship of her upcoming worldwide tour (Source: 'Pepsi to Premiere Britney Spears Commercial at Yahoo!' Hoovers Online. (2001, March 19). Retrieved April 12, 2001 from the World Wide Web: www.Hoovershbn.hoovers.com) The Pepsi/Britany Performance TV ad: The Pepsi/Britany 'Performance' TV ad March 25, 2001- Premiered during the Academy Awards The ad sequence: Britany as a Pepsi employee She rips off her clothes and dances suggestively Fireworks explode Bob Dole is watching the ad with his dog. The dog barks, Bob says, 'Easy, boy.' (Source: 'Pepsi to Premiere Britney Spears Commercial at Yahoo!' Hoovers Online. (2001, March 19). Retrieved April 12, 2001 from the World Wide Web: www.Hoovershbn.hoovers.com Burbank, Max. (Retrieved May 10, 2001). 'Bob Dole, Pepsi Pervert: A Critial Analysis'. Ape Cultures coverage of Oscar 2001: the Pepsi Ad. ) Pepsis Internet Presence: Pepsis Internet Presence Alliance between andamp; Pepsi bought up all of the advertising on Yahoo! for that weekend. Britany Spears commercial was premiered online two hours before it was aired on television. Now the two Britany Spears commercials can be viewed at www.pepsi.com (Source: 'Pepsi to Premiere Britney Spears Commercial at Yahoo!' Hoovers Online. (2001, March 19). Retrieved April 12, 2001 from the World Wide Web: www.Hoovershbn.hoovers.com ) Wyclef Jean and Pepsi: Wyclef Jean and Pepsi A more targeted market within Gen Y: inner-city urban trendsetters (12-to-21-years-old) The Campaign Includes: -2 TV commercials featuring Wyclef (1st commercial premiered April 16th, 2001) -print ads -radio promotions -sports and fashion tie-ins -sampling Pepsi is Wyclefs sponsor for his 2001 tour -Pepsi Challenge (Source: Chura, Hillary. (2001, April 9). 'Pepsi Plans Biggest-Ever Urban Push'. Advertising Age. 'Wyclef Hawks Pepsi'. Yahoo! News. (2001, April 11). Retrieved April 12, 2001 from the World Wide Web: dailynews.yahoo.com/h/rolls/20010411/en/wyclef_hawks_pepsi_1.html) Advertising Appeals: Advertising Appeals Type A & B Celebrities: Type A andamp; B Celebrities Type A Celebrity = one that is well known and well liked by their target market. Eg. Britney Spears and Michael Jackson Type B Celebrity = one that is known by their target market. Eg. Bob Dole and Hallie Eisenburg Wells, Williams, andamp; Burnett, John, andamp; Moriarty, Sandra. (2000). ADVERTISING: Principles and Practice (5th ed.). New Jersy: Prentice-Hall Inc.. Music: Music Music is part of Pepsis brand equity. Ongoing theme and easily associated with current generation of 12-to-21 year olds Wells, Williams, andamp; Burnett, John, andamp; Moriarty, Sandra. (2000). ADVERTISING: Principles and Practice (5th ed.). New Jersy: Prentice-Hall Inc.. Humor: Humor Use of humorous celebrities Put music celebrities into situations not normally seen Wells, Williams, andamp; Burnett, John, andamp; Moriarty, Sandra. (2000). ADVERTISING: Principles and Practice (5th ed.). New Jersy: Prentice-Hall Inc.. Sex Appeal: Sex Appeal Sex appeal is not only an attention getter with the current generation, but is also becoming more socially acceptable in the advertising directed toward them. Wells, Williams, andamp; Burnett, John, andamp; Moriarty, Sandra. (2000). ADVERTISING: Principles and Practice (5th ed.) New Jersy: Prentice-Hall Inc.. Ad Appeals: Ad Appeals Market Share: Market Share (Source: 'Coke, Pepsis Share of Market Flat in 00.' The Atlanta Journal-Constitution. (Feb. 16, 2001). Conclusion: Conclusion In the first quarter of 2001 Pepsis volume growth grew 3.8% Pepsis market share has been slowly increasing over the past 3 years to 13.8% McKay, Betsy. 'Facing Slow Sales, Coke and Pepsi Gear Up For New Battle'. Wallstreet Journal (April 16, 2001).

10-Step Plan of Pepsi Cola Philippines Presentation Transcript

1. 10-STEP MARKETING PLAN Mark Anthony A. Valino22 June 2010Ateneo Graduate School of Business 2. 5 STEPS for PART 1(Primary Target Market and Positioning)Pepsis PTM are active teenagers and on-the-go professionals.Who want refreshing beverages fit for their active lifestyles.Can choose Coca-Cola, Cosmos, C2, Nestea, Powerade, Zesto-O, or Wilkins, among others.Gap is all other brands offering thirst-quenching, ready-to-drink, and pocketfriendly liquid refreshment beverages.The market size is Php91 B, Pepsi is Php15 B. 3. 5 STEPS for PART 1(Primary Target Market and Positioning)Carbonated and non-carbonated liquid beverages.Price is mid priced, 10%-20% below/above competitors.Uses multimedia platform, billboards, supermarkets, convenience stores, bars, sari-sari stores, and carinderiasIs distributed nationwide.Uses niche market, and supply and distribution leverage as its generic winning strategies. 4. Positioning to thePRIMARY TARGET MARKETPart 1: Step 1 of 5 5. PART 1: Step 1 of 5Pepsis Primary Target Market areDemographics: Teens (13-21 y/o) and young professionals (22-35 y/o), male and female, social class ABC, single)Lifestyle: Hip and active teens, and on-the-go young professionals.Behavior: Daily, at least 3x/day, min. of 8 oz and up, thirst-quenching, fits lifestyle. 6. PART 1: Step 2 of 5Maslow Hierarchy of Needs5: I enjoy a fun and healthy life.3: I am hip and I belong with my peers.2: I drink healthy beverages. 7. PART 1: Step 2 of 5Pepsis PTMs Needs, Wants, & ExpectationsTeens need to feel belongingness with their peers, gaining self-esteem, and enjoy life. Teens choose Pepsi over other liquid beverages because its ready/easy to drink, taste, affordability, hip packaging, and endorsed by their pop icons/idols.Teens expect that when they drink Pepsi, it primarily will quench their thirst with its good taste. Pepsi is a hip drink of their age. It is the best complement to favorite food while enjoying time with family and friends.

8. PART 1: Step 2 of 5Pepsis PTMs Needs, Wants, & ExpectationsOnthe-go, young professionals need to stay fit and healthy amidst a busy and competitive lifestyle. They choose Pepsi over other liquid beverages because its ready/easy to drink, taste, affordability, and provides health benefits.On-the-go, young professionals expect that when they drink Pepsi, it primarily will quench their thirst with its good taste. Plus, it has ingredients beneficial to their health and fitness. 9. PART 1: Step 3a of 5Direct and indirect products that address my PTMs NWEDirect:Indirect: 10. PART 1: Step 3a of 5Direct and indirect products that address my PTMs NWEVariables: Age, social status, price, packaging, ease of use, branding, availability, health benefits, marketing campaign, promotion. 11. XXX-Correct RC Pepsi ranks 3rd with 17.4% share of the Philippine carbonated soft drinks market 12. PART 1: Step 3b of 5Pepsis Competitive Position MapPrice vs. Economic class MatrixMarket Share(48.4%)Market Share(17.4%)Market Share(23.3%) 13. Pepsis unique positioning is shown in this competitive map Positioning vs. Brand Matrix 14. PART 1: Step 4 of 5 Pepsi strongly positions itself in a particular segment of the soft drink marketPepsi is the only soft drink: conscious effort to create attractive packagingconsistently and aggressively serves the teen and young professional market segmentProjects a trendy, stylish imageinvests heavily in global and local celebrity endorsementsNo brand has this positioning in the market.Other focus on supply and distribution leverage, product research and development. 15. PART 1: Step 5a of 5 Based on an independent research report, the Philippine carbonated soft drinks market is Php 82.3 billion.*in Php millionsSource: 2009 Business World Top 1000 16. PART 1: Step 5b of 5 Based on Pepsi IPO Prospectus, where its share is 17.4% , total market is Php 91 billion. Total Liquid Beverage Industry by Volume and Value

17. PART 1: Step 5b of 5 Based on Pepsi IPO Prospectus, where its share is 17.4% , total carbonated soft drinks market is Php 91 billion. Source: Pepsi Cola Products Philippines Phil. IPO Prospectus, February 2008CAGR: Compounded Annual Growth Rate 18. PART 1: Step 5b of 5 Based on Pepsi IPO Prospectus, where its share is 17.4% , total carbonated soft drinks market is Php 91 billion. Source: Pepsi Cola Products Philippines Phil. IPO Prospectus, February 2008CAGR: Compounded Annual Growth Rate 19. PART 1: Step 5b of 5 Based on a competitor data, Pepsis share still stands at 15%.RC COLA: The leading company in the market [at an average] was San Miguel Corporation/CCBI. The second-largest player was PepsiCo, Inc. with Nestle S.A. in third place.Coca Cola shares 80% market share from its acquisition of Cosmos Bottling Corp. Top Sellers: Coke Sakto, Sparkle, Coke Zero, PopPepsi Cola shares a market share of 15%.Top Sellers: Pepsi, Mountain DewRC Cola shares a market share of 4% Others share 1% 20. PART 1: Step 5c of 5 Consumer data indicates a size of Php 93 BPhilippines off-trade liquid refreshment beverage/capita consumption is 56 liters.Philippine liquid refreshment beverage sales volume is 6.01 M liters 21. PART 1: Step 5c of 5 Consumer data indicates a size of Php 93 B.Philippine carbonated soft drinks market volume is 2.14 million liters, valued at Php 93 billion. 22. PART 1: Step 5 of 5 Concluded that carbonated soft drinks market is about Php91 million.Independent research = Php 82.3 billionCompany data = Php 91billionConsumer data = Php 93 billion 23. THE MARKETING MIX STRATEGYProduct, Price, Promo, PlaceGeneric Winning Strategy 24. PART 2: Step 6aCarbonated soft drinks market is dominated by 3 major companies 25. PART 2: Step 6bProduct Description4 brands: Pepsi Cola, 7-Up, Mountain Dew, Mirinda (for carbonated soft drinks only)8 sizes, 3 types

of packaging: 7 oz, 8 oz, 12 oz, and 1 liter returnable glass bottle (RGB); 500 ml, 1L, and 1.5 L PET bottle; and 355 ml aluminum can

26. PART 2: Step 7Pepsi is mid priced, about 10%-20% lower than market leader and higher than low price rival. 27. PART 2: Step 8Promo: Pepsi ad spending is low compared with closest competitor.Source: ACNielsen Adspend Report (Jan June 2009) 28. PART 2: Step 8Promo: TVC of Pepsi 29. PART 2: Step 8Promo: TVC of Pepsi 30. PART 2: Step 8Promo: TVC of Coca-Cola 31. PART 2: Step 8Promo: TVC of Coca-Cola 32. PART 2: Step 8Promo: TVC of RC Cola 33. PART 2: Step 8Promo: TVC of Sarsi 34. PART 2: Step 9Place: Pepsi is distributed nationwidePepsi sells its products through approximately 275,000 points of sale in the Philippines.This includes supermarkets, convenience stores, bars, sari-sari stores, and carinderias (through sales force).Relies on distribution reach through retail outlets, direct sales, distributorship, and wholesaling. Entrepreneurial Distribution System (971 contractors, serving 1,789 routes) 35. PART 2: Step 9Place: Pepsi is distributed nationwideModern trade channels (supermarkets, etc.) account for 17% of net sales revenue in 08)Third party wholesale and distributorship account for 19% of net sales revenue)On a volume-weighted basis, Pepsi sold its products to approximately 46% of the available sales outlets for soft drinks in the Philippines. 36. PART 2: Step 10Pepsi capitalizes in its niche market, supported by its supply and distribution leveragePepsi is the only soft drink brand actively pursuing the teenage and young professional markets (young, hip, and cool).This is supported by strong advertising and marketing programs.Channeled through its stable and expanding distribution

system.Promising as there is planned company investments in multiple plants, infrastructure system to widen reach.

37. 5 STEPS for PART 1(Primary Target Market and Positioning)Pepsis PTM are active teenagers and on-the-go professionals.Who want refreshing beverages fit for their active lifestyles.Can choose Coca-Cola, Cosmos, C2, Nestea, Powerade, Zesto-O, or Wilkins, among others.Gap is all other brands offering thirst-quenching, ready-to-drink, and pocketfriendly liquid refreshment beverages.The market size is Php91 B, Pepsi is Php15 B. 38. 5 STEPS for PART 1(Primary Target Market and Positioning)Carbonated and non-carbonated liquid beverages.Price is mid priced, 10%-20% below/above competitors.Uses multimedia platform, billboards, supermarkets, convenience stores, bars, sari-sari stores, and carinderiasIs distributed nationwide.Uses niche market, and supply and distribution leverage as its generic winning strategies. 39. 10-STEP MARKETING PLAN Mark Anthony A. Valino22 June 2010Ateneo Graduate School of Business