Aquafina Final

PEPSI: PROMOTING NOTHING

PRESENTED BY:GROUP- 2

Keyur Savalia

Bharat Maheshwari

Krishna Rajput

Dipa Shah

Nikita Sanghvi

Mitesh Shah

COMPETING COMPANIES

Pepsi Cola and Coca-Cola have been competing with each other for many years through numerous taste tests and television ads.

One of the ideas they came up with is water. In the early 1990s Evian and Perrier were the brands that dominated the niche and helped establish bottled spring water’s clean, healthy image.

Pepsi first tried to attack this market with bottled and sparkling water but failed. In 1994, Pepsi had the idea of using its bottlers to filter local tap water and offering the resulting product under the name of Aquafina.

BACKGROUND INFORMATION

They experimented with a reverse osmosis process pushing already filtered tap water at high pressure through fiberglass membranes to remove even the tiniest particles.

This process created a water with no taste or odor. In addition, because the process used tap water it was inexpensive and would compete well on price with the other spring waters in the market.

Pepsi wanted to target everyone with a unisex, mainstream water at an everyday price.

COMPETITORS CASH IN…

By 1999, the bottled water market had boomed and competitors such as Coca-Cola decided it was time to join the market. Similar to Pepsi they launched Dasani.

Dasani was a bottled water filtered locally by its bottlers but with certain salts and minerals added to give it a fresh, clean taste. Having the same motives as Pepsi, Dasani was content just to build distribution and not promote water.

WATER WARS

By 2001, the category was on the way to becoming the 2nd largest beverage category.

By 2004 both companies decided they needed to promote their waters. This resulted in a new front called the “Water Wars”.

1. What markets should Pepsi target for Aquafina?

THEORETICAL FRAMEWORK

Demographic Age - >12years Income - >INR 20,000 Generation - Generation Y

Psychographic Personality – Sincere, Competent, Sophisticated Life Style – Health Conscious, Hygiene Sensitive

Behavioral Loyalty Status – Shifting loyal Readiness Stage – Informed/interested Attitude towards product - Positive

CASE DATA & THEORATICAL FRAMEWORK

Pepsi on contrast to Evian wanted to target everyone with a unisex product at an everyday price.

They position the product as having “nothing”! Pepsi is referring to how the product has no added minerals or anything and that it is pure.

POSSIBLE TARGET OPTIONS

Pepsi could narrow the targeting even more, it could target the 20-35 aged, active, on-the-go, health-conscious woman.

For teenagers drinking too many soft drinks, it could position the drink as a substitute for soft drinks. This would be problematic for Pepsi but could be a complementary alternative.

Another option would be to target the 20-35 year old, active, health-conscious man who is on the go.

Rather than promoting as a sports drink It could position simply as pure water for people where good water was not readily available.

2. What advertising objectives should Pepsi set for Aquafina?


OBJECTIVE - PERSUASIVE ADVERTISING

Building brand preference Encouraging switching to the brand Persuading customers to purchase now Convincing customers to tell others about the brand


The focus for advertising objectives should be on persuading or on

building selective demand.

Persuasive advertising includes persuading customers to purchase now,

to receive a sales call, and convincing customers to tell others about the

brand.

The first step in creating effective advertising messages is to decide

what general message the company wants to communicate to

consumers.

This flows from the positioning statement stressing the idea that the

positioning statement guides development of the marketing mix.

Company can also print a logo of Pepsi on the label of Aquafina.

3. What message strategy and message execution recommendations would you make for Aquafina?

THEORETICAL FRAMEWORK MESSAGE STRATEGY

Customer benefit appeal Distincitive & believable

MESSAGE EXECUTION Slice of life Lifestyle Mood or image – purity Musical – sound of water droplets, waterfall Personality symbol Scientific evidence Testimonial endorsement

CASE DATA & THEORATICAL FRAMEWORK Pepsi problem arising because they are positioning the product as

“nothing”. If Pepsi wanted to target active people who drink water, a core

benefit could be summarized as “Pure water. Wherever you are.” The stated advertising appeals should be meaningful, believable, and distinctive.

Pepsi initially used a “slice of life” style in depicting “real” people drinking Aquafina. If this were the case then selecting lifestyle ads that depict active people using the product in unusual places is a good method.

4. What advertising media recommendations would you make for Aquafina, and how would you evaluate the effectiveness of those media and your advertising?


FACTORS TO SELECT ADVERTISING MEDIA Reach Frequency Impact

BASIS FOR MEDIA SELECTION Target-audience media habits – regular readers or

television watchers Product characteristics – pure, unisex,

mainstream Message characteristics – commitment to soul and

health, Sincerity Cost – High absolute cost


TYPE OF MEDIA Television Health/fitness or travel magazines Display boards

If the company targets active people use media that serves various sports and outdoor enthusiasts. It could develop an special website for Aquafina that offered

information on outdoor activities.


The print ads which contain coupons for free or reduced price

Aquafina that consumers could redeem at stores. On the basis of

coupon ID Number Pepsi could determine which print media

contained the coupon.

Promotional offers could also be promoted by Television ads.

All of these steps could help Pepsi measure both communication

effects and the sales effects of the individual media.

5. What sales promotion and public relations recommendations would you make for Aquafina?

THEORETICAL FRAMEWORK SALES PROMOTION

Consumer Promotion Tools

Cash Refunds, Price Packs, Event/Contest, Trade Promotion Tools

Price-off, Allowance, Free Speciality Advertising Items PUBLIC RELATIONS

Sponsorships News Public service availability Mobile Tour Marketing


Pepsi could promote Aquafina in grocery stores with displays

and special pricing.

It could give away sample drinks in the stores.

Contests whereby entrants could win various promotional items

like Aquafina coolers and bottle holders.

It could offer trade promotions to encourage stores to stock and

feature the water.

For public relations,

Sponsor various athletic and outdoor competitive events where it

would supply water for the participants.

Community charity events.

6. What promotion recommendations would you make for Aquafina Essentials, Aquafina Sparkling Water and H2Oh


COMMUNICATION OBJECTIVE: Awareness and Knowledge Message Strategy: Show attributes and benefits INFORMATIVE ADVERTISING Television Fitness/health magazine Newspaper PR TOOL – NEWS, Sponsorship SALES PROMOTION – Samples, Price pack, Premiums


Given that Pepsi has established the name and selective demand for Aquafina, it is much cheaper for it to build off that rather than to start over to build marketing support for another new brand name.

Both brands stayed true to the healthy traits that were propelling water sales (no calories, carbs, or sugar). But Pepsi designed each to satisfy different needs within the market. Aquafina Sparkling was carbonated, unsweetened, and came in unflavored and lightly flavored varieties.

These should be positioned as an alternative to bland water. “Add some zing to your water” might be a tagline suitable for these products. The target in this situation is the water consumer who is looking for some variety.

Pepsi can still pursue a health-orientated positioning. Promotions aimed at health-conscious people, especially those who like to exercise or go to health spas.

Aquafina Final

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