Mission Statement epsi’s mission is to have a thrilling engagement with its audience and connecting with them, P as they with us. We hope to deliver excellent products that everyone will enjoy in their everyday lives. In addition, we hope that our work can be seen with genuineness, respect, and most of all, with integrity.
Target Analysis The Target Market Approach Pepsi targets a mass market with the use of differentiated marketing strategies. Its main audience ranges between teenagers (17 year olds) up to young adults (35 year olds). In this audience, both genders are targeted; however, depending on the product, Pepsi will pitch in a differentiated marketing strategy. For example, “Diet Pepsi’s” director of marketing, Amy Spiridakis, stated in Business Insider that this product is “targeted at females who love home design.” Now Pepsi doesn’t usually target one specific audience; however, it did in this occasion because they were trying something “new”. Since sales had been down, they were trying new ways to bring sales back up. So, instead of marketing to their usual audience, they decided to try out one specific demographic. They added a chic design to the can and they also made it look slimmer to make more appealing to the female consumer. In a more general aspect, Pepsi does target a mass market. You will see high schoolers, college students, people in the working field, moms, dads, and senior citizens drinking Pepsi. It appeals to every kind of demographic. Demographics/psychographic profile ü Gender: Both male and female ü Income: All incomes ü Age: 18-34 ü Occupation: Students, stay-at-home moms, military, celebrity, etc. ü Education: High School Diploma – Some, any college degree; or, none. ü Geographic Region: Everywhere ü Lifestyle and Attitudes: Consumer is outgoing, fun, spontaneous, daring, and youthful. Even for the older demographic. They may be older, but they’re young at heart. Always trying to live in the moment; social media users; smartphone user s (depends). Not as health conscious, but manage to balance it out. Product Usage Teenagers are using Pepsi, as young adults as well, for purposes such as drinking the product with a meal, or to hydrate, and/or even mixing it with alcohol, etc. For the older demographic, some may drink “Diet Pepsi” for health purposes. Most women will drink “Diet Pepsi” as well or even “Pepsi Zero” because it has little to no calories. Pepsi can be used as refreshment at parties, schools, and
other events. In addition, it has been noted, that ingredients found in Pepsi can remove rust from chromes. Product Positioning Although Pepsi targets consumers as a whole, it identifies itself as a teenage beverage or as “the new generation drink”. Pepsi’s sets an energetic, fun, spontaneous, and youthful image and Pepsi’s slogans reflect that as well throughout the years. In 1964, Pepsi’s slogan was “Come Alive, You’re in the Pepsi Generation”; in 1988 – 1991, their slogan was “Pepsi: The Choice of a New Generation”; the most recent, from 2009, “Every Generation Refreshes the World” (G&M Distributors, Inc.). This way of positioning the product has gain a significant increases with younger consumers.
Attitudes Pepsi’s main competitor is Coke; it has been like that ever since it was created. For an interview we conducted, a consumer viewed Pepsi is “the #2” and Coke as the #1 even though this consumer was a “Pepsi drinker”. A lot of consumers, as of recent, have been showing complaints with the product’s new “recipe”. Consumers have been posting on Pepsi’s Facebook page the products new “taste” isn’t as good as the original. Ever since health issues aroused years back with obesity in children and in teenagers, Pepsi has had to reevaluate the product and change its ingredients. Consumers want more natural ingredients, more natural sugars, but Pepsi wasn’t the only one affected. The whole carbonated/soda category was affected by these controversies. The soda industry was slammed after discovering the ingredients found in the carbonated products. Ever since, consumers, mostly mothers, have protested to prohibit carbonated beverages from schools to protect their kids from obesity. Young adults have become more health conscious and have stepped away from sugary products. Pepsi has become to adapt to this new health trend by offering new products lower in calories and with better quality ingredients. Quantitative and Qualitative Analytics ü Facebook: Pepsi currently has 33,431,568 likes on its Facebook page; 272.5K people talk about it daily and it gains 2.7K new page likes weekly. The demographics liking its page ranges between 18-24 year olds (Facebook). ü Twitter: 2.7 million followers. Current hashtag: #LiveForNow. ü Instagram: 47K followers. ü Main Website ( www.pepsi.com ): Pepsi is globally ranked as #65,849. In the U.S. it is ranked as #27,560. According to Alexa.com, females generally visit the site and have had some kind of college experience. Most often, the site is browsed at home. Purchasing Process Need Recognition → Information Search → Evaluating Alternatives → Purchase → Post-Purchase
1. The consumer recognizes a need to purchase the product. The consumer may be thirsty or may be having a party that needs to buy drinks for it. 2. Once the need is identified, the consumer will then search for options either by recommendations (word of mouth), prior experience with a product, looking up reviews online. It is more likely that the consumer may take a personal friends suggestion or a family members because the consumer knows them on a first basis and that makes that 10 times more reliable. 3. Now that the consumer has chosen a few brands/drinks, it will now assess which they prefer and by doing so, they will either taste it, look at its characteristics, etc. The consumer will recap past perceptions of the brand as well, which will then help decide if the want it or not. 4. In the purchase stage, value becomes a huge factor. Consumers may now view the pricing on the brand, or the promotions, coupons, and policies. Consumers may change their mind after viewing another brand’s price. It could be cheaper and with more value, than the original brand sought for. 5. And lastly, the post-purchase evaluation. During this stage, the consumer will begin to evaluate their decision. They will begin to analyze if the brand satisfied their needs, if it was more than they had expected, or if it completely disappointed them. This is the stage where brands obtain brand loyalty.
Market Analysis Pepsi is a global industry founded in 1965 as part of PepsiCo. Pepsi does not really have a season that makes a huge difference in their sales. The only time we really see a bit of a difference is during the summer. It is shown that more people drink Pepsi while it’s nice and hot outside. Pepsi has a lot of opportunities that can help them grow. Many people are starting to become more health conscious. Pepsi is a carbonated drink that is obviously not good for you. They can begin to try and improve the brands image and come up with a couple healthier products. Pepsi is also known for sponsoring music events and plenty of award shows. Pepsi also pays forward to the community. Since 2005 they have donated more than $600 million to qualified nonprofits. Also their employees volunteer and are involved in as many community service opportunities they can. Many companies consider Coca-Cola to be a huge threat for Pepsi. Coke has always been seen has the number 1 soda company while Pepsi is number 2. Pepsi has accepted the fact that they are number two o and are okay with it. Since the population is becoming more health conscious carbonated drink sales have declined dramatically.
PepsiCo has some healthy products like Naked juices, Sobe water, Quaker and Gatorade but they do have the opportunity to have more nutritious products. One trend Pepsi has going for them is that they have a lot of diversity in their products. A couple different kind of Pepsi’s are Diet Pepsi, Pepsi Vanilla, and caffeine free Pepsi. Those are just a couple in the United States. If we look at Europe, Japan and Latin America there are 100’s of different kinds
Brand analysis Product attributes
World renowned brand and Carbonated Soft drink Pepsi is a symbol of hygiene, quality and service, all over the world. Producing Cola for more than 100 years it has dominated the world market for a long time. Created and developed in 1898 it was introduced as Brad’s drink. It was later renamed Pepsi cola in 1906 and finally just Pepsi in 1961. Pepsi is the bold refreshing robust cola. No real nutritional benefits.
Pricing Pepsi set its price in the US according to national market. Pepsi also done a survey for setting a price all-over the world. Price should not be low nor high, so that it would be affordable to the common consumer.
For protecting the syrup, Pepsi Cola uses the glass as well as plastic bottles of different quantities. } 250 ml Regular Bottle } 330 ml Tin } 500 ml Disposable Bottle } 1000 ml Regular Liter Bottle } 1500 ml Disposable Bottle } 2250 ml Family pack Disposable Bottle PepsiCo has an extensive distribution channel serving over 10 million stores per week in over 200 countries. Promotion Promotion are board in aim and scope which are in the form of prize, reduce price coupons , premiums, contest or discounted promotions usually offering the consumer a special reason to buy. Varun beverage Nodia does PepsiCo sales promotion through various types of schemes such as daily, monthly, annual schemes, merchandising of materials and add promotion. In late 2008, Pepsi overhauled their entire brand, simultaneously introducing a new logo and a minimalist label design. The redesign was comparable to Coca-Colas earlier simplification of their can and bottle designs. Also in 4th quarter of 2008 Pepsi teamed up with Google to produce the first daily entertainment show on
YouTube, Pop tub. This daily show deals with pop culture, internet viral videos, and celebrity gossip. Pop tub is updated daily from Pepsi. Market position is one of the most important aspects of PepsiCo success. Pepsi Is currently one of the leaders in the soft drink market. It is a strong well-recognized consumer brand name domestically and internationally. Pepsi has official sponsorship deals with three of the four major North American professional sports leagues: the National Football League, National Hockey League and Major League Baseball. Pepsi also sponsors Major League Soccer.¢ Pepsi also has sponsorship deals in international cricket teams. The Pakistan cricket team is just one of the teams that the brand sponsors. The team wears the Pepsi logo on the front of their test and ODI test match clothing.¢ On July 6, 2009, Pepsi announced it would make a $1 billion investment in Russia over three years, bringing the total Pepsi investment in the country to $4 billion.¢ In July 2009, Pepsi started marketing itself as Pecs in Argentina in response to its name being mispronounced by 25% of the population and as a way to connect more with all of the population. Brand Equity
Pepsi accomplished 2nd rank as a CSD brand by competing franchises of Coke, Royal crown and Dr. Pepper by attaining 10% of U.S market.The Coca-Cola Company sells its products to bottling and canning operations, distributors, fountain wholesalers and some fountain retailers.
Competitive Analysis Pepsi and Coke are both respectively well known in the world of marketing and advertising. Both brands offer a refreshing, cool, and fun embodiment, that has managed to resonate with consumers globally. However, Coca-Cola continues to be the dominant brand of the two, with profitability, as well as brand loyalty exceeding that of Pepsi for over 100 years. I will attempt to highlight Coca-Cola, their strengths, weaknesses, as well as marketing executions, that can possibly be considered, and work in Pepsi’s favor when it comes to reaching a wider demographic. Distribution The Coca-Cola Company sells its products through bottling and canning operations, distributors, fountain wholesalers and some fountain retailers. These then are distributed to retail outlets, milk
bar and corner stores, restaurants, petrol stations and newsagents. Thus, we can cite different point of sales where Coca-Cola is generally available throughout the Coca-Cola Company:
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Wholesalers/ distributors
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Retail/corner stores/supermarkets/Groceries…
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Restaurants/cafés/night clubs
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Petrol stations
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Automated teller machines (AMTs)
Competitors Standings The biggest competitor for Pepsi is Coca-Cola. Coke controls 42% of the carbonated soft drink market while Pepsi owns about 30%. Coke serves more than 200 countries and offers more than 500 brands. They are considered the world’s largest market share in beverages with revenue of $46.854 billion. Coke also has an amazing presence in the world of marketing and advertising. Coke came out with the Share a coke campaign, which increased their sales dramatically. Within the past 10 years sales had dramatically decreased and since the campaign, things have finally started looking up for coke again.
Competitive Trends ● Health Trends → Controversies on the ingredients being used in sodas has caused immense controversy, which has led consumers to stop drinking it and finding other options to fulfill their nutritional needs. ● Energy and Sports Drinks ● Water Consumption → Back to the health trend, consumers are more aware of what they’re eating and drinking.
Situation
Analysis
Pepsi
By:Michael Hayes, Ashton Sutton, Lara Kechichian, and Stefanie Ramirez
Bibliography Facebook. 1 October 2014 <https://www.facebook.com/PepsiUS?brand_redir=1>.
Inc. Alexa Internet. 1 October 2014 <http://www.alexa.com/siteinfo/pepsi.com>. G&M Distributors, Inc . 11 December 2012. 30 September 2014 < http://www.gmdist.com/2012/12/11/pepsi-slogans-and-logos-throughout-the-years/ > Pepsico website 1 oct 2014 www.Pepsico.com