marketing management project on

8/8/2019 Marketing Management Project On

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MARKETING

MANAGEMENT

PROJECT ON

BY

TUSHAR.V.RATHOD

SY-BMS

ROLL.NO:22


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INDEX


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INTRODUCTION

The pharmacy of Caleb Bradham, with a Pepsi dispenser, as portrayed in a

New Bern exhibition in the Historical Museum of Bern.

Pepsi was first introduced as "Brad's Drink" in New Bern, North Carolina, in1883 by Caleb Bradham, who made it at his pharmacy where the drink was

sold. It was later named Pepsi Cola, possibly due to the digestive enzymepepsin and kola nuts used in the recipe.

[1]Bradham sought to create a

fountain drink that was delicious and would aid in digestion and boost

energy.[2]

In 1903, Bradham moved the bottling of Pepsi-Cola from his drugstore to a

rented warehouse. That year, Bradham sold 7,968 gallons ofsyrup. The nextyear, Pepsi was sold in six-ounce bottles, and sales increased to 19,848

gallons. In 1909, automobile race pioneerBarney Oldfield was the first

celebrity to endorse Pepsi-Cola, describing it as "A bully drink...refreshing,invigorating, a fine bracer before a race." The advertising theme "Delicious

and Healthful" was then used over the next two decades.[3]

In 1926, Pepsi

received its first logo redesign since the original design of 1905. In 1929, thelogo was changed again.

In 1931, at the depth of the Great Depression, the Pepsi-Cola Company

speculating on wildly fluctuating sugar prices as a result ofWorld War I.

Assets were entered bankruptcy - in large part due to financial lossesincurred by sold and Roy C. Megargel bought the Pepsi trademark.[4] Eight

years later, the company went bankrupt again.


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Marketing StrategiesPepsi

Marketing strategies of Pepsi

Eastern Europe, Mexico, china, Saudi Arabia and India markets

have now become the hotspots for Pepsi as the increasing global

advertising strategies are escalated. As such, Pepsi now operates

in more than 190 countries and with 37% global market share.

Pepsi recognizes the need to carefully integrate high standards in

various processes of supply chain especially at the retail level.

The company strives for excellence specifically for the products

or brands as well as packaging, marketing and advertising. The

rationale behind this is that customers deserve better quality

products and so quality controls are realized in manufacturing

and bottling process, packaging and from warehouses to store

shelves. Pepsi markets its products on the basis of localization

process wherein local bottlers determine which products to pact

and sell in their territory based on local consumer demand andother market factors. Pepsi has balance of promotions and

communicates through celebrity endorsers as well as on the

Internet, newspaper and sponsorships. Finally, Pepsi promotes

its brands in supermarkets through keeping discounts an History


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Market segmentation

Market segmentation is the process of dividing markets comprising the

heterogeneous needs of many consumers into segments comprising the

homogeneous needs of smaller groups (Guille M). Segmentation is usually

done by demography, geography and socioecto segment consumer market

is to use demographic variables such as age, gender and education level.

Organizations that operate globally usually segment consumer market

geographically. Besides, socioeconomic variables are to segment the market

regarding the income, social class and also lifestyle (Guilleonomic variables.

The easiest waySoft Drink PepsiCo

As we know that PepsiCo provides varieties of beverages such as

carbonated soft drinks, sport drinks, dairy-based drinks, energy drinks, fruit

flavored beverages, ready-to-drink coffees, ready-to-drink tea, mineral

water and frozen beverage. Those products are marketed under brand as

Pepsi, Mountain Dew, Gatorade, Lipton, Starbucks, Tropicana, and so on.

Why PepsiCo have to produce so many types of products? The reason is

relevant to market segmentation. PepsiCo aims to attract different groups

of consumers with difference types of products.

Demography:

Pepsi targets the young people since before until now because most of the

teenagers

Psychographics:

The pepsi campaign attempts to capture the youth of today by focusing on

their personality,lifestyle and attitude of youth through the advertisement.


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Pepsis target market

Pepsi has aimed itself at a young audience with an age range of teens to

mid twenties. With regards to their U.S website, which is ranked the 4th

most visited in food consumer products, you can clearly see that from its

layout, use of colours and wording that Pepsi is bright, funky and fresh;

aimed at forward thinking young men and women.

In poor contrast the Pepsi UK website focuses mainly on football and is

centred on the Pepsi Max brand. This brand has generally been seen as

male due to its colour schemes and also previous advertising campaigns

based on high adrenaline sports. Therefore Pepsi Max is less appealing to

women and so it the Pepsi UK website.

The Pepsi adverts can be seen as targeting a potentially narrow

demographic. Most Pepsi adverts today consist of high profile football

players advertising their brand. In theory Pepsi are narrowing their target

market as football is a sport mainly enjoyed by

The Pepsi adverts can be seen as targeting a potentially narrow

demographic. Most Pepsi adverts today consist of high profile footballplayers advertising their brand. In theory Pepsi are narrowing their target

market as football is a sport mainly enjoyed by men, although its female

fan. Pepsi has also had a range of adverts starring various music artists.

The target audience for these is much younger compared to their football

adverts, however, iconic artists such as Michael Jackson hold univ


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Pepsi Marketing Mix

While analysing a company's product, a common fallacy can

be focusing on the final outlook of the product and that givesrise to a nave approach. Analysts should consider and analyse

all major product decisions that the company may have

carried out including quality, features, options, style, brand

name, packaging, sizes, after-sales services, warranties,

returns, etc. Moreover, the company's position, as well as

marketing strategy in the market, can be judged on the basis

of its product mix including width, length, depth and

consistency (Proctor, 200). Width is the number of lines thefirm carries, for example Sony has various lines including

TV, video, cameras and laptops. Length is the number of

items in the product mix, for example Toshibahas different

types of TVs and laptops. Depth is the number of variants of

each product offered in the line such as clock radios, car

radios and pocket radios. Finally, consistency is how closely

related the various product lines are in terms of the use to which

they are put, more commonly including electrical and

entertainment products. So, using these bases for product strategy

classification will lead to easy and effective analysis. Finally, one

should attempt to identify what the company is actually aiming at

through its product. There can be three possible product strategies

in a company's action (Proctor, 2000). Either it aims the product at

the market such as Erickson with new mobile phones to cater for

the business class; it can be given a "face lift" such as Marks &

Spencer's attempt with more customer-specific products; and it

can be withdrawn, discontinued or eliminated such as Marks &

Spencer closing down its unprofitable units across the globe.

To write a valuable pricing analysis of a company, the key is to

correlate its pricing strategy with its product position in the

market. The company may use various pricing strategies such as

penetration, skimming, competition-based pricing, psychological

pricing,...


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1.MARKETING MIX OF PEPSI

PepsiCo is one of the world's largest food and beverage

companies,with 2007 annual revenues of more than $39 billion. The

company employs

approximately 185,000 people worldwide, and its products

are sold in

approximately 200 countries through four P's of the

Marketing Mix which are

following.

1.PRODUCT

2.PRICE

3.PLACE

4.PROMOTION


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1. Product:

I n m a r k e t i n g , a p r o d u c t i s a n yt h i n g t h a t c a n b e o f f e r e d

t o a m a r k e t t h a t m i g h t s a t i s f y a w a n t o r n e e d . I t i s o f t w o t y p e s : T a n g i b l e ( p h y s i c a l ) a n d I n t a n g i b l e ( n o n -

p h y s i c a l ) . S i n c e s e r v i c e s h a v e b e e n a t t h e f o r e f r o n t o f

a l l m o d e r n m a r k e t i n g s t r a t e g i e s , s o m e i n t a n g i b i l i t y h a s

b e c o m e e s s e n t i a l p a r t o f m a r k e t i n g o f f e r s . I t i s t h e r e f o r e

t h e c o m p l e t e b u n d l e o f b e n e f i t s o r s a t i s f a c t i o n s t h a t

b u y e r s p e r c e i v e t h e y w i l l o b t a i n i f t h e y p u r c h a s e t h e

p r o d u c t . I t i s t h e s u m o f a l l p h y s i c a l , p s y c h o l o g i c a l ,

s y m bo l i c , a n d s e r v i c e a t t r i b u t e s , n o t j u s t t h e p h y s i ca l

m e r c h a n d i s e . A l l p r o d u c t s o f f e r e d i n a m a r k e t c a n b e

p l a c e d b e t w e e n T a n g i b l e ( P u r e P r o d u c t ) a n d I n t a n g i b l e

( P u r e S e r v i c e ) s p e c t r u m .

P EP SI- P RODUCT:

Th e P e p s i -Co la d r in k c o n ta in s b a s i c i n g re d ie n t s fo u n d in

mo s t o th e r s imi l a r d r in k s in c lu d in g c a r b o n a te d wa te r , h ig h

f ru c to se c o rn sy ru p , su g a r , c o lo r in g s , p h o sp h o r i c a c id ,c a f f e in e , c i t r i c a c id a n d n a tu ra l f l a v o r s . T h e c a f f e in e f r e e

P e p s i -Co la c o n ta in s t h e s a me in g re d ie n t s b u t n o c a f f e in e .

S o me o f t h e d i f f e r e n t b r a n d o f p ro d u c t a r e a s fo l lo ws :

1 .a qua f ina

2 .g a to r a de

3 .m o unta in de w

4 . t r o p ic a na tw i s t e r

5 .m ir inda . e t c


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2.PRICE:

IN economics an business,the price is the assigned

numerical monetary value of good,services orassets.price is also central to marketing where it is one

of the 4th variable in marketing mix. Pricing is a big part

of marketing mix. Choosing the right price and the right

pricing strategy is crucial to the marketing process. The

price of the product is not some thing that is fixed.on the

other hand price of the product depends on many other

factors.the price may act as a way to attract target

customers.

PEPSI-PRICE:

PEPSI desides it price on the basis of competition .the

best thing about the company pepsi is that it is very

flexible and it can come down with the price very

quickly. The company is renowned to bring the price

down even up to half if needed.but this risk taking

attitude has also earned pepsi losses.though loweringthe price would attract the customers but it would not

help them cover up the cost incurred in production

hence causing them losses.

This was the situation earlier but now pepsi is full-

fledged and growing company.it has covered all its

losses and is now growing at the rapid rate.


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3.PLACE:

Place i s a te rm tha t has a va r i e t y o f mean ings in a

d i c t i o n a r y s e n s e , b u t w h i c h i s p r i n c i p a l l y u s e d i n ageog raph ic sense as a noun to d e n o t e l o c a t i o n ,

t h o u g h i n a s e n s e o f a l o c a t i o n i d e n t i f i e d w i t h t h a t

w h ic h i s l o c a t e d t h e r e .

In marke t ing , p l ace re fe rs to one o f t he 4 P ' s ,

d e f i n e d a s " t h e m a r k e t p l a c e " . I t can mean a

g e o g r a p hi c l o c a t i o n , a n i n d u s t r y , a g r o u p o f p e o p le

(a segmen t ) t o whom a company wan ts to se l l i t sp roduc ts o r se rv i ces , such as young p ro fess iona l

w o m e n ( e . g . f o r s e l l i n g c o s m e t i c s ) o r m id d le - a g e d

f a m i l y m e n ( e . g . f o r s e l l i n g f a m i l y c a r s )

P EP SI- P LACE:

Peps i has sp read a l l ove r wo r ldw ide .peps i when

en te r ing a new marke t does no t go in a lonebu t i t

l o o k s f o r p a r t n e r s a n d m e r g e r s . t i l l n o w p e p s i h a sc o l l a b o r a t e d w i t h c o m p an y l i k e q u a k e r o a t s , f r i t o -

l a y s , l i p t o n , s t a r b u c k s . e t c .

P e p s i l i k e c o k e h a s s p r e a d a l l o v e r t h e w o r l d . i t i s

because o f t h i s wo r ldw ide sp read now i t i s com ing up

w i t h a d v e r t i s e m e n t s w h i c h c a n b e b r o a d c a s t e d i n t h e

d i f f e r e n t n a t i o n i n t h e w o r l d . t h e r e c e n t e x a m p le

wou ld be the peps i adve r t i semen t hav ing dav id

beckham as i t b rand ambassado r .


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4. PROMOTION :Promo t ion i s one o f t he fou r aspec ts o f ma rke t ing .P r o m o t i o n

compr i ses fou r subca tego r ies :1 . A d v e r t i s i n g2 . P e r s o n a l s e l l i n g3 . S a le s p r o m o t i o n4 . P u b l i c i t y a n d p u b l i c r e l a t i o n s

The spec i f i ca t i on o f t hese fou r va r iab les c rea tes a

p romo t iona l m ix o r p romo t iona l p lan . A p romo t iona l

m ix spec i f i e s how much a t ten t i on to pay to each o f

t he fou r subca tego r ies , and how much money to

budge t fo r each . A p r omo t iona l p lan can have a w ide

r a n g e o f o b j e c t i v e s , i n c l u d i n g : s a l e s i n c r e a s e s , n e w

produc t accep tance , c rea t ion o f b rand equ i t y ,

p o s i t i o n i n g , c o m pe t i t i v e r e t a l i a t i o n s , o r c r e a t i o n o f a

co rpo ra te image .

P E P S I - P R O M O TI O N :

PEPSI is very famous for their promotion.pepsi first

started with the blind taste tests known as the pepsi

challenge.at malls, shoping centers and other public

location ,a pepsi representatives set up a table with two

blank cup,1 containig pepsi an 1 with coke.shoppers are

encouraged to taste both the colas an then select which

drinks they prefers.then if pepsi is reveled the shoppers

are given a small price.the implication is that pepsi taste

better then coke.

Now a days pepsi has come up with another campaign

known as youngistan , andtheother is ye dil mange

more. Also AD-campaign are put up on the television

by pepsi.mainly pepsi is the company sponsoring most

cricket telecasts,happening in india and spents most of

its revenue in this field.a list of celebreties are the brand

ambassadors for pepsi.


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SWOT ANALYSIS OF PEPSI

Strength:

Pepsi has a broader product line and outstandingreputation.

Merger of Quaker Oats produced synergy across the board.

Record revenues and increasing market share.

Lack of capital constraints (availability of large free cash

flow).

o Great brands, strong distribution, innovative capabilities

o Number one maker of snacks, such as corn chips and

potato chips

PepsiCo sells three products through the same distribution

channel.

For example, combining the production capabilities of Pepsi,

Gatorade and Tropicana is a big opportunity to reduce costs,

improve efficiency and smooth out the impact of seasonal

fluctuations in demand for particular product.

Weakness:

Pepsi hard to inspire vision and direction for large global

company.

Not all PepsiCo products bear the company name

PepsiCo is far away from leader Coca-cola in the

international market - demand is highly elastic.

Opportunity:

Food division should expand internationally

Noncarbonated


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drinks are the fastest-growing part of the industry

There are increasing trend toward healthy foods

Focus on most important customer trend - "Convenience".

Threats:

F&B industry is mature

Pepsi is blamed for pesticide residues in their products in

one of their most promising emerging market e.g in India

Over 50 percent of the company's sales come from Frito-

Lay; this is a threat if the market takes a downturn

PepsiCo now competes with Cadbury Schweppes, Coca-

Cola, and Kraft foods (because of broader product line) which

are well-run and financially sound competitors.

Size of company will demand a varied marketing program;

Social, cultural, economic, political and governmental

constrains.

Strategies:

The purpose of the strategy is to increase the EPS by 15% per

annum and increase PepsiCo's stock price. There are two

ways to increase the EPS, first is to increase the income and

second to decrease the amount of stocks outstanding. To

increase the income, there are...


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POSITIONING OF PEPSI IN MARKET

BEVERAGES

SOFT DRINKS: PEPSI COLA

LOCAL DRINKS: MACCA COLA ,AMRUT COLA ,

JUICES: PULPY NESTLE FRUITO,

ENERGY DRINKS: RED BULL COTT.

STRATEGIC POSITION OF PEPSI

1.COMPETITIVE ADVANTAGE:

Brand recognition

Large market share

Wide distribution channel

Customer loyalty.

2.FINANCIAL STRENGTH :

Inventory turnover

Returns on asset

Net income

3.INDUSTRIAL STRENGTH : 4.environment stability

High industry growth rate economic stability

Profit potential barrier to entry

Financial stability competitive preasure.

Resource utilization.


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BRAND IMAGE

Brand image means the image of a particular brand in market and in eyes of

people. Brand image decides the popularity of a brand in market. A brandhaving good brand image is considered more popular than a brand with low

image.

There are three components to a brand image : attributes, consequences and

brand

personality. It is perhaps more inclusive to think of a brands image as

encompassing

all the associates that a consumer has for that brand : all the thoughts, feelings

and

imagery-even colors, sounds and smells - that are mentally liked to that brand in

the

consumers memory.

BRAND IMAGE OF PEPSI

y Pepsi is the brand that every youngster

relates to.

y But this definitely doesnt mean that other

age group are not its users .

y Thus pepsis brand image is its HIP, COOL ,LIVELY,

and REFRESHING ATTITUDE

RECOMMADATION AN SUGGESTION FOR PEPSI :

y Aggressive responses an aggressive

strategy,

y Market penetration in term to increase its

market share through tie up with different

restaurants& clubs. or continue withas incres

its share through huge advertisement an

sponsoring different event.


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BIBLOGRAPHY

WWW.AUTHORSTREAM.COM

WWW.SCRIBD.COM

.

WWW.OPPAPERS.COM

WWW.PEPSI.COM

WIKIPEDIA

WWW.GOOGLE.COM


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