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Page 1: Marketing report on PEPSI

MARKETING REPORT ON PEPSI COLA (BEVERAGE)

PREPARED BY: ASIM NASEEM (22743)

MAZHAR (22719)

FARHAN AFRIDI (11156)

Page 2: Marketing report on PEPSI

EXECUTIVE SUMMARY

Pepsi Cola Company includes in beverages industry. Pepsi Cola international is well reputed multinational company which is doing its business in almost every country of the world. The company is registered in New York stock exchange U.S.A. to make a better control over the business the company has given the manufacturing rights to different companies. Now these companies are producing the products on the behalf of the company by using their trademark

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The mission of the PepsiCo focuses on products and performance primarily, with a few values thrown in for good measure. The mission statement of the PepsiCo Company is:

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

PEPSI COMPANY MISSION STATEMENT, VISION, AND PURPOSE:

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Demographic Segmentation

PEPSI COLA is not bounded to any particular age, gender or lifecycle stage. The brand is meant for all the users of every age group but its target market is mainly youth.

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Psychographic SegmentationFor psychographics, Pepsi-cola caters to all

social classes, but the vast majority of attention goes to people in the middle/upper class. This is demonstrated by their social media efforts.

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Behavioral SegmentationThey are heavy TV users and very likely to

notice ads on billboards. They may not be brand loyal, but are very heavy users of the carbonated soda category.

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COMPETITIVE ANALYSIS:

Scope:Pepsi Cola’s product is included in consumer product

and came under the category of specially product about which the consumers are fully aware and are completely loyal with it.

Market Share:Pepsi is about 65 - 70% while Coke is about 25-28% in

Pakistan Beverage Market Survey.*Bottle Water and Dairy is not included in the beverage survey

Major competitors:Pepsi's main competitor has always been Coca-Cola.

Other big competitors are Dr. Pepper/Snapple and Kraft.

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SWOT ANALYSIS OF PEPSI:

Strength:Product diversityExtensive distribution channelCorporate Social Responsibility (CSR) projectsCompetency in mergers and acquisitions22 brands earning more than $1 billion a yearSuccessful marketing and advertising

campaignsComplementary product salesProactive and progressive

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Opportunity:Growing beverages and snacks consumption

in emerging markets (especially BRIC)Increasing demand for healthy food and

beveragesFurther expansion through acquisitionsBottled water consumption growthSavory snacks consumption growth

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Weakness:Overdependence on Wal-MartLow pricingQuestionable practices (using tap water but labeling it as

mountain spring water)Much weaker brand awareness and market share in the

world beverage market compared to Coca-ColaToo low net profit marginThreat:Changes in consumer tastesWater scarcityDecreasing gross profit marginLegal requirements to disclose negative information on

product labelsStrong dollar

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POSITIONING:

Firstly the Pepsi in America try to position its product for the society as whole and for the purpose of refreshment, which can be clearly visible from their advertisement slogans like-

 “ Any weather is a Pepsi weather”-

“ The light refreshment “- “ Be sociable, have a Pepsi “

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This positioning strategy they followed up to 1960 andafter analyzing that it is very difficult to capture wholepopulation as whole. So Pepsi after 1960 started targeted marketing andchoose a different way to promote and to attract new

customers by usinghuge marketing campaigns along the years and creating

brandpersonality associated to the adventure.

Pepsi’s goal is Attract a certain set of customers to buy the product by associating itself with young people who are energetic, fun loving and daring.

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PEST ANALYSISEconomic Factors

1. Inflation Rate2. Competition is increasing with the entrance

of new domestic players in cola industry3. Currency rate4. Market campaigns5. Leisure time

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Political Factors

Govt. policies not favourable sometimes.1. Competitive pricing2. Political stability3. Flexibility4. Government policies

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Socio-Cultural Factors

1. Connects world’s together2. Associated with festivals3. Non alcoholic beverage

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Technological Factors

Internal and external factors such as technology, globalization, innovation, diversity and ethics can immensely affect and impact the four functions of management. Various functions such as organizing, leading, planning and controlling can be emerged and influenced by several different internal and external factors.

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MARKETING STRATEGIES AND MARKETING MIXMarketing Mix:Pepsi Cola is a market leader so it keep the eyes

on each and every competitive advantage. For example now it has introduced the cardboard bottle packing.

¨ Pepsi- cola also give importance to the size, colour, and shape of its packages. It has introduced the medium-sized carboard boxes with the different traditional colours such as for Pepsi-Cola it us the Blue and red colour. For Mirinda it uses orange and green colour and for team and seven –up it uses the green colour packages.

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PRICE:

A product’s price is a major determinant of the market demand for it. Price affects a firm’s competitive position and its market share. To be useful, the pricing objective management selects must be compatible with the over all goals set by the firm the goals for its marketing program.

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There are 3 pricing objectives:

Profit oriented:To achieve a target return.To maximize profit.Sales oriented:To increase sale volumeTo maintain or increase market shareStatus oriented:To stabilize pricesTo meet competition

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Packaging:Packages of Pepsi Cola:1) 250ml glass returnable bottle2) 1.5 liter non returnable bottle3) 2.25 Liter jumbo non returnable bottle4) 1/2 L Pet non returnable bottle 5) 1 L Pet and non returnable bottle6) 300 ML Can (Tin)

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PROMOTIONAL STRATEGIES:

Establishes an image such as prestige, discount or innovative for the company and its goods and services.

Communicates features of goods and services. It creates awareness for new goods and services.It can reposition the images or uses of faltering goods and

services.It generates enthusiasm from channel members.It explains where goods and services can be purchased. It can persuade consumers to trade up from one good or

service to a more expensive one. It alerts consumers to sales.It justified the prices of goods and services. It reinforces loyal consumers.