STRATEGIC MANAGEMENT

Marketing Strategies Of

Pepsi Company

1

Introduction

Pepsi is a carbonated soft drink that is produced and manufactured by PepsiCo.

Created and developed in 1893 and introduced as "Brad's Drink", it was later renamed

as Pepsi-Cola on August 28, 1898, then to Pepsi in 1961

Our mission statement is to maximize shareowner value over time.

In order to achieve this mission, we must create value for all the constraints we serve,

including our consumers, our customers, our bottlers, and our communities. The Pepsi

Company creates value by executing comprehensive business strategy guided by six

key beliefs:

1. Brand Pepsi is the core of our business

2. We will serve consumers a broad selection of the nonalcoholic ready-to–

drink beverages they want to drink through out the day.

3. We will be the best marketers in the world.

4. We will think and act locally.

5. We will lead as a model corporate citizen.

The ultimate objectives of our business strategy are to increase volume, expand

our share of worldwide nonalcoholic ready to drink beverages sales, maximize

our long-term cash flows, and create economic value added by improving

economic profit.The Pepsi system has more than 16 million customers around the

world that sells or serves our products directly to consumers. We keenly focus on

2

enhancing value for these customers and helping them grow their beverage

businesses. We strive to understand each customer’s business and needs, whether

that customer is a sophisticated retailer in a developed market a kiosk owner in an

emerging market.

There are nearly 6 million people in the world who are potential consumers of our

company’s product. Ultimately, our success in achieving our mission depends on our

ability to satisfy more of their beverage consumption demands and our ability to add

value for customers. We achieve this when we place the right products in the right

markets at the right time.

3

PEPSI INTERNATIONAL

HISTORY:HISTORY:

Pepsi was first introduced as "Brad's Drink"] in New Bern, North Carolina, United

States, in 1893 by Caleb Bradham, who made it at his drugstore where the drink was

sold. It was later labeled Pepsi Cola, named after the digestive enzyme pepsin and

kola nuts used in the recipe. Bradham sought to create a fountain drink that was

delicious and would aid in digestion and boost energy.

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

warehouse. That year, Bradham sold 7,968 gallons of syrup. The next year, Pepsi was

sold in six-ounce bottles, and sales increased to 19,848 gallons. In 1909, automobile

race pioneer Barney 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.

In 1926, Pepsi received its first logo redesign since the original design of 1905. In

1929, the logo was changed again.

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

bankruptcy – in large part due to financial losses incurred by speculating on wildly

fluctuating sugar prices as a result of World War I. Assets were sold and Roy C.

Megargel bought the Pepsi trademark. Megargel was unsuccessful, and soon Pepsi's

assets were purchased by Charles Guth, the President of Loft Inc. Loft was a candy

manufacturer with retail stores that contained soda fountains. He sought to replace

4

Coca-Cola at his stores' fountains after Pepsi refused to give him a discount on syrup.

Guth then had Loft's chemists reformulate the Pepsi-Cola syrup formula.

On three separate occasions between 1922 and 1933, the Coca-Cola Company was

offered the opportunity to purchase the Pepsi-Cola company, and it declined on each

occasion

Pepsi was first introduced as "Brad's Drink" in New Bern, North Carolina, United

States, in 1893 by Caleb Bradham, who made it at his drugstore where the drink was

sold. It was later labeled Pepsi Cola, named after the digestive enzyme pepsin and

kola nuts used in the recipe. Bradham sought to create a fountain drink that was

delicious and would aid in digestion and boost energy.

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

warehouse. That year, Bradham sold 7,968 gallons of syrup. The next year, Pepsi was

sold in six-ounce bottles, and sales increased to 19,848 gallons. In 1909, automobile

race pioneer Barney 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.

[4] In 1926, Pepsi received its first logo redesign since the original design of 1905. In

1929, the logo was changed again.

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

bankruptcy – in large part due to financial losses incurred by speculating on wildly

fluctuating sugar prices as a result of World War I. Assets were sold and Roy C.

Megargel bought the Pepsi trademark. Megargel was unsuccessful, and soon Pepsi's 5

assets were purchased by Charles Guth, the President of Loft Inc. Loft was a candy

manufacturer with retail stores that contained soda fountains. He sought to replace

Coca-Cola at his stores' fountains after Pepsi refused to give him a discount on syrup.

Guth then had Loft's chemists reformulate the Pepsi-Cola syrup formula.

On three separate occasions between 1922 and 1933, the Coca-Cola Company was

offered the opportunity to purchase the Pepsi-Cola company, and it declined on each

occasion

6

MANAGEMENT:MANAGEMENT:

The hierarchy of Pepsi Company is as follows.

.

GLOBAL MARKET SHARE:GLOBAL MARKET SHARE:

The following table can show the worldwide operating segments.

Unit case growth Non-

alcoholic

drink

All commercial

Beverages

10 year compound

annual growth

5-year compound

annual growth

2001 annual

growth

2002 2002

Compa

ny

Industry Compa

ny

Industry Compa

ny

Industry Company

share

Compa

ny share

Compa

ny per

capita

Income

6% 5% 5% 5% 4% 4% 18% 9% 70

ChairmanBoard of governors

Vice Chairman and chief operating officer

Executive Vice Presidents

Senior Vice Presidents

Vice Presidents

7

This shows that the market of the company is geographically vast and it is controlling

it with great success. In 2002, the company grew their carbonated soft-drink business

by nearly 250 million unit cases and generated record volumes. Because carbonated

soft drinks are the largest growth segment within the nonalcoholic ready-to-drink

beverage category measured by volume, that is why they are focusing more on this

and they are continually increasing the pace because they know that accelerating this

pace is crucial to their future success. Thus they are increasing their market day by

day. The operation income earned by Pepsi Company can be illustrated by the

following pie chart.

(Figure)

This strategy has worked a lot and it has helped them to become the World’s leading

Soft Drink Company. The global unit sale of the Pepsi Company is increasing from

the last ten years. The data of the global unit sale of the Pepsi Company can be

represented by following chart.

8

(Figure)

So there is positive growth in the market of the Pepsi Company. There is a worldwide

volume increase by 4% with strong international growth of 5%. This is only due to the

innovative marketing programmers, which has deepened the relationship of the

customers and Pepsi. The financial health and success of their bottling partners is a

critical component of The Pepsi Company's ability to build and deliver leading brands.

In 2002, the company had worked with their bottlers to turn good intentions into

reality by improving the system economics. The results in 2002 reflect this steadily

improving and mutually constructive relationship between the Company and their

bottling partners. The main reason behind this relationship is to continue realizing

shared opportunities for growth, with closer coordination of operations including

customer relationships, logistics and production.

9

MARKET SHARE BY AREA:MARKET SHARE BY AREA:

Pepsi is the world-renowned soft drink and the company is currently operating

through out the world. The world wide total is about 17.8 billion.

The operation review according to the segments is as follows.

Operation Review

(2002 worldwide unit case volume by operating segment)

NORTH

AMERICA

LATIN

AMERICA

EUROPE &

MIDDLE EAST

ASIA AFRICA

30% 25% 22% 17% 6%

So the volume is least in the Africa and most in the North America. The data about the

market share of this company area wise is given in the following table.

The above table shows the geographical earning of the Pepsi Company and from this

data; we can find out that the customers of Pepsi are increasing which is shown by the

company’s per capita income. Unit case equals 24 eight-ounce servings.  The column,

which shows the non-alcoholic beverages consist of commercially, sold beverages, as

estimated by the Company based on available industry sources. The country column is

derived from

.

10

In Asian population, which is the satisfied customer of Pepsi, is approximately 3.2

billion and the average consumer enjoys close to two servings of our products each

month. Through an intense focus on Pepsi, innovation and new beverages, the

company has achieved volume growth of 10 percent in 2002. With developing

economies and

populations, this region has strong long-term potential, and the company is building

an exciting family of beverage brands in addition to expanding the popularity of our

core brands, led by Pepsi. In China, for example, sales of Pepsi increased 6 percent.

The total unit case sale of Pepsi in Asia can be shown by So the company is

emphasizing more in this area and is trying to develop a strategy, which can increase

the growth of the consumption oPepsi by the people of Asia. Among the countries of

Asia, Japan has the highest percentage, which is about 29%. Among others, INDIA,

India and Bangladesh are those countries where the average consumption is increasing

day by day.

11

COMPANY STATISTICS:

The statistics of this company is impressive. Since it is operating through out the

world that is why the number of employees and the bottling equipments is highest

among the other bottling companies. There is a constant increase in every aspect when

we compare the statistics of 2001 and the statistics of 2002. This is because; Pepsi

Company is increasing its volume day by day. The expansion of this company, which

shows the success of Pepsi brands, results in the percentage change in the statistics of

the two years. The statistics is as follows.

The commitment of the company is to devote resources to water only in markets

where it expects profitable growth. This strategy has paid dividends. The company has

successfully applied it’s approach to brands in several key markets, including Ciel in

Mexico, Mori No Mizudayori in Japan, Bonaqua in Russia and Kinley in India.

Backed by a strong network of bottling partners through out the United States, Dasani

became the nation's fastest-growing water brand. In Eurasia, the entire Turkuaz brand

12

team worked together to launch Turkey's first purified water brand. This year, Pepsi

Company also successfully energized a major piece of its beverage strategy—water.

By the end of 2001, it’s bottled water volume exceeded 570 million unit cases,

making it the second biggest contributor to the growth of the company after

carbonated soft drinks. Three of the water brands, Dasani, Ciel and Bonaqua each

achieved sales of over 100 million unit cases for the year.

In 2001and 2002, the company has also made good progress in coffees and teas.

Beverage Partners Worldwide, the renewed and strengthened marketing partnership

with Nestlé S.A., began operations in 2001. This partnership combines Nestlé's

knowledge in life science, research and development with the expertise of Pepsi

Company in brand building and distribution.

At the same time, the company grew Georgia coffee in Japan by 3 percent through

award-winning marketing in a category that was flat for the year. Also in Japan—

where The Pepsi Company is the leader in the total tea category, the second-largest

category in the non-alcoholic ready-to-drink segment—it launched Marocha Green

Tea. With sales of 46 million unit cases for the year, Marocha Green Tea is the fastest-

growing product in the fastest-growing category: green tea. The popularity of

Marocha is also recognized by the industry with a leading trade journal naming

Marocha the most popular new food and beverage product of the year. Among the soft

drinks Fanta and Sprite become successful along with the major brand Pepsi and Diet

Pepsi. In key markets, the company has created new packaging sizes to satisfy

consumer demands. 13

Increasingly, Mexican families have lunch together at home. The average Mexican

household drinks two-and-a-half liters or more of soft drinks during that break, while

a two-liter bottle was the largest available package. So the company introduced a

convenient 2-½ liter bottle to select regions, contributing to the sale of nearly 1.5

billion unit cases of Pepsi in Mexico this year. This larger bottle will complete its

nationwide rollout in 2002. In China, Pepsi is an integral part of holiday celebrations

and the family get-togethers that accompany such events. Through an intense focus on

Pepsi, innovation and new beverages, it has achieved volume growth of 10 percent in

2001. In China, sales of Pepsi increased by 6 percent. In the United States,

recognizing that consumers often enjoy their diet Pepsi with a slice of lemon, the

company "bottled" the concept. The result—diet Pepsi with lemon—contributed to

volume growth of 4 percent for the number-one diet.

Soft drink in North America: diet pepsi. The company increased its two largest bottle

sizes during the 2001 holidays, and festival packaging helped drive a 6 percent

volume increase for Pepsi. The packaging innovations do not just involve resizing.

The company has also responded to consumers' changing fashion styles with new

bottles.With brands such as Minute Maid, Hi-C, Simply Orange and Disney juices and

juice drinks in the United States, Qoo in Asia, Kapo in Latin America and Bibo in

Africa. This year, the company re-launched its global sports-drink business, investing

in new products, packaging, positioning and marketing. The results speak for

themselves: it’s global sports drinks, led by Powerade and Aquarius, grew by 13

percent in 2002, nearly double the growth rate of the worldwide sports-drink category. 14

Revitalized in the United States, the company introduced Powerade in nearly every

major Western European market, including Great Britain, Germany and Spain, as well

as in Mexico and Latin America. The company launched 27 products in 2001.

The commitment of the company to packaging innovation also resulted in new

initiatives for our fountain business, a channel through which many consumers enjoy

Pepsi. In the United States, the company developed Fountain, a total beverage

dispensing system that is more flexible and more reliable. Two years of research

resulted in a dispensing system that provides exceptional beverage quality, easy to

upgrade technology, brand and graphic customization and improved reliability.

15

STRATEGIC PLANNING

In the year 2002, the company had a great success, as the strategy worked which

resulted in making Pepsi Company the world’s leading company. In 2001, company

accomplished the crust of it’s strategy as

Worldwide volume increased by 4 percent with strong international growth of 5

percent and clear signs that our North American business is growing solidly and

predictable.

Earnings per share grew by 82 percent, as we delivered on our commitment to

create volume growth while aggressively

Return on common equity grew from 23 percent in 2000 to 38 percent this year.

Return on capital increased from 16 percent in 2000 to 27 percent in 2001.

The company has generated free cash flow of $3.1 billion, up from $2.8 billion

in 2000, a clear indication of its underlying financial strength.

The strategy for the future of the company is very straightforward. The marketing

strategy for the year 2002 is as follows,

Accelerate carbonated soft-drink growth, led by Pepsi.

Selectively broaden the family of beverage brands to drive profitable growth.

Grow system profitability and capability together with our bottling partners.

Serve customers with creativity and consistency to generate growth across all

channels.

Drive efficiency and cost-effectiveness everywhere.

16

PROMISE OF PEPSI

The basic proposition of our business is simple, solid and timeless. When we bring

refreshment, value, joy and fun to our stakeholders, then we successfully nurture and

protect our brands, particularly Pepsi. That is the key to fulfilling our ultimate

obligation to provide consistently attractive returns to the owners of our business.

TARGET MARKET

Pepsi commercials basically based on young generations, So, the young generation is

the target market of Pepsi because they want to represent Pepsi with the youth and

energy but they also consider about the old people they take then as a co-target

market.

MAJOR SEGMENTS

Major segments are basically those people who take this drink daily and those areas

where the demands is higher then the other areas. There are so many people who take

this drink daily and those people who take weekly and those who take less often are

always there as well. So, their basic segments are those people who take this drink

regularly.

17

FACTORS EFFECTING SALES

There are so many factors, which affects the sale of pepsi. Here we are discussing

three major factors which effects pepsi.

Per capita income

Weather

Per Capita Income

First we will discuss about “ Per capita income”. This is major factor that affects the

sale of this soft drink. Because which every passing year budgets are becoming very

strict and tight in order to purchase things. So the disposable incomes of the people

are coming down. They spend heavily on rents, utilities, and education and basic

necessities and after that when they get extra money they think about this soft

drink .So the decreasing per capita income effects badly in selling and production of

this soft drink. And to get through with this difficulty there is need to increase the

level of per capita income of INDIA because it is much lesser than the rest of the

countries.Pepsi major competitor is “Pepsi” and there is no hesitation to say this

because every one knows that and all the other cold drinks and water, coffee, tea are

the competitors.

18

Weather

Weather is the third major factor in effecting the Pepsi selling. This is underdeveloped

market so the pepsi consumption in summers is 60% and in winters is 40%.

MAJOR CUSTOMERS NEED

First of all the majority don’t care that what they are going to have. In other words,

they don’t care before drinking that whether it is “Pepsi” or “pepsi”. They don’t

actually differentiate between these two brands in order to their tastes.

Consumers basically drink what they get.

They believe on “WHAT COLD THEY SOLD”

Consumer’s availability in brands is basically works like:

Push availability

Pull consumer’s demand.

For this reason Pepsi have provided their coolers and freezers in the market. They

have maximum number of coolers and freezers in the market. They provide this

infrastructure free of cost just to provide child pepsi to their customer, which they

want to be purchase.

Their salesman and mechanics regularly visit all the shops where pepsi has its

infrastructure to check that either it is in proper condition or not, if not then they

immediately change or repair it.

19

MAJOR COMPETITORS

Consumers firstly decide that they are going to have a soft drink. Then they compete

brands with each other. Like they compete Pepsi with coke and Sprite with 7up and

team .So the major competitor of Pepsi is coke

When they motivate to any other brand or on Pepsi it’s in instinct basically that based

on messages derive certain feelings.

But Pepsi thinks in a different way, they believe that RC Cola, new coming AMRAT

Cola, and all juices, even they take water and tea as their competitors.

STRATEGIES OF QUALITY

After Micro and macro analysis Brand “pepsi” is primarily role

1. Enhance competition moments

2. When people watch cricket

3. Through commercialization

4. Fun time

Though these strategies there could be better understanding and better connection with

the public. These are the “key consumption”.

20

THREATS FROM COMPETITORS

Threats are well planned. Price is the major threat. When price goes certain beyond

the exact price whether come down or go higher its effects the consumption of soft

drink.

Because when the price go higher people go for the substitute of “pepsi” i.e. Pepsi.

And when price goes down they think that there is must be some thing wrong in it.

In short it all depends on customer’s perception.

TARGETS THAT WOULD LIKE TO ATTAIN

Every organization runs on the bases of profit maximization so Pepsi is also looking

for a high profit margin.

There are three major ways of making money

Over night profit

Windfall profit

Over Night Profits

They could be over night profit that is for the number 1 brand for the year. This could

be got my increasing sales volume

Windfall Profit

Can be windfall profit. They are the extras profit. When the consumption the

consumption is on boom. So, there is different kind of profits.

21

Ethical And Unethical Ways

Profit can also get through ethical and unethical ways. They believe on this quote

“ Every thing is fare in love and war”.

Some profits stays for some time like “over night profits” and some just come and go

like “wind fall profits”. And they can also get profit through different approaches.

EXPANDING TARGET MARKET

In last 2 years Pepsi has come back in aggressive manner.

Consumer has choice

Attractive brand name

Consumer Has Got Choice

Now the consumer has got choice. Because now they know the name of another big

brand, though pepsi is the 2nd best name but it can get a better position after some time

Attractive Brand Name

Now the consumers know the Name of Pepsi, because Pepsi is the name, which is the

most popular after the word “ok”. So people can better differentiate brands with each

other.

Brand Differentiation

Now different companies have got different brand names. So, people can distinguish

between brands. Two major brands “pepsi” and “coke” also have brand names.

22

THREATS AND OPPORTUNITIES FOR PRICE

Opportunities

If Pepsi is considered a luxury product. Then there is the tax rate system

15% - sales tax

20% - excise duty

27% - goes to government

03% - In making Budget

After paying all these taxes pepsi has to pay electricity charges. We have to spend on

distributions. After paying all these expenses Pepsi margin squeezed and consumers

have to pay for increasing tariffs.

These are the opportunities through which we can increase the price and can get

profits.

Threats

There are much more threats in increasing prices. Because same problem of substitute.

If Pepsi increase the price lets say 1 rupee. Then people definitely won’t go for pepsi.

They have the best substitute of Pepsi that is Pepsi. So these are the threats in

increasing prices. Pepsi will lose the margin of its profit and can face loss.

23

STRATEGIES OF GETTING GOALS I.E. “HIGH PROFITS”

To increase the price is the least thing, which Pepsi can adopt. There are so many

ways through which Pepsi can increase the profits. Some major ways are as follows.

Volume can be increased

Interest level of consumers

To take part in energetic festivals

How to increase the volume of consumers?

Pepsi can increase the volume by expanding the industry of pepsi. Through

advertisements, offering different interesting things to attract people towards this

product.

How to increase the interest level of consumers?

Pepsi is increasing the interest level of consumers by offering different flavors.

For example Pepsi is increasing the number of flavors in “Fanta”, this is one of the

product of pepsi. Through offering different flavors Pepsi can increase the Level of

consumers and through this profits can be gained.

How to take part in energetic festivals?

Pepsi is already taking part in the festival like “Diwali” since last 3 years. Pepsi offers

different attractive things in their festival and through this Pepsi gained high profit and

consumption of pepsi increased on these occasions. And this year in this year 2002

people were anxiously waiting that what interesting thing pepsi is going to offer.

24

MARKETING STRATEGY

Our local marketing strategy enables Pepsi to listen to all the voices around the world

asking for beverages that span the entire spectrum of tastes and occasions. What

people want in a beverage is a reflection of who they are, where they live, how they

work and play, and how they relax and recharge. Whether you're a student in the

United States enjoying a refreshing Pepsi, a woman in Italy taking a tea break, a child

in Peru asking for a juice drink, or a couple in Korea buying bottled water after a run

together, we're there for you. We are determined not only to make great drinks, but

also to contribute to communities around the world through our commitments to

education, health, wellness, and diversity. Pepsi strives to be a good neighbor,

consistently shaping our business decisions to improve the quality of life in the

communities in which we do business. It's a special thing to have billions of friends

around the world, and we never forget it.

25

PRICE STRATEGY

Trade Promotion

Pepsi company gives incentives to middle men or retailers in way a that they offer

them free samples and free empty bottles, by this these retailers and middle man push

their product in the market. And that’s why pepsi seen more in the market. And they

have a good sale in the market because according to the expert which product seen

more in the market that sells more.

“Seen as sold”

They do agreements with a shop keepers and stores to exclusive sale in that stores.

These stores are called as KEY accounts in their local language.

And pepsi also invest heavy budget on these stores and offers them free samples and

free bottles and some time cash incentives.

Different Price In Different Seasons

Some times Pepsi Company change their product prices according to the season.

Summer is supposed to be a good season for beverage industry in INDIA.

So in winter they reduce their prices to maintain their sales and profit. But normally

they reduce the prices of their pet bottles or 1 litter glass bottle.

26

PROMOTION STRATEGIES

Getting shelves

They gets or purchase shelves in big departmental stores and display their products in

that shelves in that style which show their product more clear and more attractive for

the consumers.

Eye Catching Position

Salesman of the pepsi company positions their freezers and their products in eye-

catching positions. Normally they keep their freezers near the entrance of the stores.

Sale Promotion

Company also do sponsorships with different college and school’s cafes and sponsors

their sports events and other extra curriculum activities for getting market share.

UTC Scheme

UTC mean under the crown scheme, pepsi often do this type of scheme and they offer

very handy prizes in it. Like once they offer bicycles, caps, tv sets, cash prizes etc.

This scheme is very much popular among children.

DISTRIBUTION CHANNELS

Pepsi Company makes two types of selling

Direct selling

Indirect selling

27

Direct Selling

In direct selling they supply their products in shops by using their own transports.

They have almost 450 vehicles to supply their bottles. In this type of selling company

have more profit margin.

Indirect Selling

They have their whole sellers and agencies to cover all area. Because it is very

difficult for them to cover all area of INDIA by their own so they have so many whole

sellers and agencies to assure their customers for availability of pepsi products.

FACILITATING THE PRODUCT BY INFRASTRUCTURE

For providing their product in good manner company has provided infrastructure these

includes:

Vizi cooler

Freezers

Display racks

Free empty bottles and shells for bottles

ADVERTISEMENT

Pepsi company use different mediums

Print media

Pos material

Tv commercial

Billboards and holdings

28

Print Media

They often use print media for advertisement. They have a separate department for

print media.

POS Material

Pos material mean point of sale material this includes: posters and stickers display in

the stores and in different areas.

TV Commercials

As everybody know that TV is a most common entertaining medium so TV

commercials is one of the most attractive way of doing advertisement. So Pepsi

Company does regular TV commercials on different channels.

Billboards And Holdings

Pepsi is very much conscious about their billboards and holdings. They have so many

sites in different locations for their billboards.

29

SALES PROMOTION ACTIVITIES

Pepsi Cricket

Cricket the most sought after; watched & played game in INDIA .the game of cricket

has been owned by various brands in the industry for the promotion of their products

over a period of time. It has ranged from tobacco to lubricants to communication

companies to banks to airlines & lately to the beverage industry. The competition has

become tougher & tougher as the time has progressed.

The Pepsi Company developed three TV commercials & four testimonial ads with the

player & ran them on the national net work during various cricket matches. These

bold steps taken by the Pepsi marketing unit acclaimed them many acknowledgements

across the board. This campaign helped Pepsi to establish its association with the

game & the player.

Pepsi Concerts

A r rehman distinct style, lyrics & songs have made him an instant hit among the

masses in INDIA. His enormous popularity in the country & abroad is supported by

Pepsi’s commitment towards providing healthy & fun-filled entertainment for the

youth of INDIA. Pepsi brought Abrar to his fans through holding concerts & featuring

Abrar in a much-appreciated TVC & MMT featured throughout the country.

Pepsi Food Mela

With a splash of food, fun & prizes to be won, the Pepsi food mela treated the people

of mumbai, to a festive food festival comprising of 50 restaurants, spread out all over

30

the bustling city’s map. The promotion saw the avid families & friends enjoying the

delicacies at the restaurants; all resiliently upholding the Pepsi identity.

Pepsi Diwali Festival

In February the month of basant the parks & horticulture authority in Lahore

nominated Pepsi the official sponsor of the basant festival .Pepsi added to the carnival

atmosphere by making the festival free to enter & decorating all main roads in Lahore

with illuminated kites. Pepsi also hosted a concert of pop idol Abrar-ul-haq, had

children’s parade & held the Pepsi kite flying championship during the basant festival.

Now “where there is basant there is Pepsi”, it has been impossible to envisage basant

without Pepsi. Pepsi give the more refreshing flavor to the colors of basant by adding

more life to the festival, giving the consumer a unique experience which they had

never tasted before.

Pepsi Shopping Festival

Pepsi hosted “The Pepsi Shopping Festival” Lahore’s first shopping festival, a

resounding success with tempting discounts, live music, great prizes & fire works.

Liberty marketing Delhi was a hive of activity during the weeklong shopping

extravaganza. The in augural event proved so popular that it is now set to become an

annual fixture.

Pepsi Pet Promotion

In 1996, Pepsi launched 1.5 liter Pet contour bottle for the first time in INDIA.

Targeting house wives & family home, Pepsi’s 1.5 liter Pet bottle, took the limelight

& gained momentum with a campaign promoting the unique packaging and its 31

numerous consumer benefits .A treat for the family, Pepsi’s PET was offered through

a “price-off” promotion that said……….Go out & get some

Pepsi Ramzan Campaign

A very special occasion for the people of INDIA Ramzan saw another very special

Pepsi’s promotion, marketing the popular 1.5 liter PET bottle & the 1 liter bottle with

a super price-off promotion. The emphasis on enjoying Pepsi at “Iftar” with friends &

family.

Pepsi Wonder of the World Promotion

In July 2000, Pepsi set the stage of the grand UTC promotion. Pepsi went ahead with

the idea of giving consumer chances to win fabulous, magical “dream vacation” to

numerous “wonder destination” throughout the world on every purchase of a 250 ml

RGB bottle of Pepsi, Sprite, & Fanta.The promotion gave consumers a chance to win

free drink, a trip to PARIS, HOLLYWOOD, NEWYORK, SINGAPORE & CAIRO

along with airfare & four nights free stay in these dream lands. The promotion saw

avid consumer collecting Pepsi ‘Crown caps’ & sparked a keen response from the

public , rendering an outstanding testimonial campaign in the second phase,

highlighting the winners over whelmed in the magical delight of their favorite

beverage Pepsi.

Pepsi TV Mazza

The pepsi new campaign is pepsi tv mazza, it is a utc scheme in which people are

getting television sets of different sizes. These days this scheme is very popular

among the people. 32

CONCLUSION

After thorough research, we come to the conclusion that the marketing strategy of

Pepsi is working for them and the product is gaining popularity among youth day by

day.

RECOMMENDATIONS

After completing our project we have concluded some recommendation for the pepsi

company, which are following.

Pepsi Company should try to emphasis more on providing their infrastructure in

the market to facilitate their customers.

According to the survey, conducted by the international firm INDIAi people

like little bit sweeter cola drink. So for this pepsi company should produce their

product according to the local demand.

Marketing team should try to increase the availability of Pepsi in rural areas.

They should also focus the old people.

Now young generation has a trend to drink a pepsi 2 regular bottles at same

time, so providing more satisfaction to them company should introduce ½ liter

disposable bottle.

33

Bibliography

en.wikipedia.org/wiki/Pepsi

www.pepsico.com

www.sirpepsi.com/pepsi11.htm

Pepsi Legacy bookPepsi Legacy book

www.theoriginof.com/pepsi.html

34