Name: Mohamed Aly Youssef Bassyouni

Roll No.: 530910871

Course: MBA

Centre Code: 2541

Centre City: Ras Al-Khaimah – UAE.

MB0030 – Marketing Management

 MB0030 - MARKETING MANAGEMENT
Set 1

Q 1.Explain BCG Matrix.

The BCG Growth-Share Matrix
The BCG Growth-Share Matrix is a portfolio planning model developed by
Bruce Henderson of the Boston Consulting Group in the early 1970's. It is
based on the observation that a company's business units can be
classified into four categories based on combinations of market growth
and market share relative to the largest competitor, hence the name
"growth-share". Market growth serves as a proxy for industry
attractiveness, and relative market share serves as a proxy for
competitive advantage. The growth-share matrix thus maps the business
unit positions within these two important determinants of profitability.
BCG Growth-Share Matrix

This framework assumes that an increase in relative market share will

result in an increase in the generation of cash. This assumption often is
true because of the experience curve; increased relative market share
implies that the firm is moving forward on the experience curve relative to
its competitors, thus developing a cost advantage. A second assumption is
that a growing market requires investment in assets to increase capacity
and therefore results in the consumption of cash. Thus the position of a
business on the growth-share matrix provides an indication of its cash
generation and its cash consumption.
Henderson reasoned that the cash required by rapidly growing business
units could be obtained from the firm's other business units that were at a
more mature stage and generating significant cash. By investing to
become the market share leader in a rapidly growing market, the business
unit could move along the experience curve and develop a cost
advantage. From this reasoning, the BCG Growth-Share Matrix was born.
The four categories are:
• Dogs - Dogs have low market share and a low growth rate and
thus neither generate nor consume a large amount of cash. However,
dogs are cash traps because of the money tied up in a business that
has little potential. Such businesses are candidates for divestiture.
• Question marks - Question marks are growing rapidly and thus
consume large amounts of cash, but because they have low market
shares they do not generate much cash. The result is large net cash

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consumptions. A question mark (also known as a "problem child") has
the potential to gain market share and become a star, and eventually
a cash cow when the market growth slows. If the question mark does
not succeed in becoming the market leader, then after perhaps years
of cash consumption it will degenerate into a dog when the market
growth declines. Question marks must be analyzed carefully in order
to determine whether they are worth the investment required to grow
market share.
• Stars - Stars generate large amounts of cash because of their
strong relative market share, but also consume large amounts of cash
because of their high growth rate; therefore the cash in each direction
approximately nets out. If a star can maintain its large market share,
it will become a cash cow when the market growth rate declines. The
portfolio of a diversified company always should have stars that will
become the next cash cows and ensure future cash generation.
• Cash cows - As leaders in a mature market, cash cows exhibit a
return on assets that is greater than the market growth rate, and thus
generate more cash than they consume. Such business units should
be "milked", extracting the profits and investing as little cash as
possible. Cash cows provide the cash required to turn question marks
into market leaders, to cover the administrative costs of the
company, to fund research and development, to service the corporate
debt, and to pay dividends to shareholders. Because the cash cow
generates a relatively stable cash flow, its value can be determined
with reasonable accuracy by calculating the present value of its cash
stream using a discounted cash flow analysis.
Under the growth-share matrix model, as an industry matures and its
growth rate declines, a business unit will become either a cash cow or a
dog, determined solely by whether it had become the market leader
during the period of high growth.
While originally developed as a model for resource allocation among the
various business units in a corporation, the growth-share matrix also can
be used for resource allocation among products within a single business
unit. Its simplicity is its strength - the relative positions of the firm's entire
business portfolio can be displayed in a single diagram.
Limitations:
The growth-share matrix once was used widely, but has since faded from
popularity as more comprehensive models have been developed. Some of
its weaknesses are:
• Market growth rate is only one factor in industry attractiveness,
and relative market share is only one factor in competitive
advantage. The growth-share matrix overlooks many other factors in
these two important determinants of profitability.
• The framework assumes that each business unit is independent of
the others. In some cases, a business unit that is a "dog" may be
helping other business units gain a competitive advantage.
• The matrix depends heavily upon the breadth of the definition of
the market. A business unit may dominate its small niche, but have
very low market share in the overall industry. In such a case, the
definition of the market can make the difference between a dog and a
cash cow.

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While its importance has diminished, the BCG matrix still can serve as a
simple tool for viewing a corporation's business portfolio at a glance, and
may serve as a starting point for discussing resource allocation among
strategic business units.
Q 2. ============================================
====================================Describe the
marketing mix for Pepsi.
Marketing Mix
Marketing Mix is the set of marketing tools that the firm uses to pursue its
marketing objectives. Marketing mix has a classification for these
marketing tools. These marketing are classified and called as the Four Ps
i.e. Product, Price, Place and Promotion.
The most basic marketing tool is product which includes product design,
quality, features, branding, and packaging.
A critical marketing tool is price i.e. the amount of money that customers
pay for the product. It also includes discounts, allowances, credit terms
and payment period.
Place is another key marketing mix tool. And it includes various activities
the company undertakes to make the product accessible and available to
the customer. Some factors that decide the place are transport facilities,
channels of distribution, coverage area, etc.
Promotion is the fourth marketing mix tool which includes all the activities
that the company undertakes to communicate and promote its product to
target market. Promotion includes sales promotion, advertising, sales
force, public relations, direct marketing, etc
The Pepsi-Cola drink contains basic ingredients found in most other
similar drinks including carbonated water, high fructose corn syrup, sugar,
colorings, phosphoric acid, caffeine, citric acid and natural flavors. The
caffeine free Pepsi-Cola contains the same ingredients but no caffeine.
Some of the different and varied brands of Pepsi are as follows:
1. All Sport 18. Pepsi
2. Aquafina 19. Pepsi Blue
3. Caffeine-Free Pepsi 20. Pepsi Cappuccino
4. Crystal Pepsi 21. Pepsi Max
5. Diet Pepsi 22. Pepsi ONE
6. Gatorade 23. Pepsi Samba
7. Izze 24. Pepsi Tarik
8. Jazz 25. Pepsi Twist
9. Josta 26. Propel Fitness
10. Kas Water
11. Manzanita Sol 27. Sierra Mist
12. Mirinda 28. Slice
13. Mountain Dew 29. SoBe
14. Mountain Dew AMP 30. Storm
15. Mountain Dew Live Wire 31. Teem
16. Mountain Dew MDX 32. Tropicana Products
17. Mug Root Beer 33. Tropicana Twister
Pepsi – Price
Pepsi again decides it price on the basis of competition. The best think
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

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down even up to half if needed.
But this risk taking attitude has also earned Pepsi losses. Though lowering
the 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 a full-fledged and growing company. It
has covered all its losses and is now growing at a rapid rate.
Pepsi – Place
Pepsi again has spread worldwide. Pepsi when entering a new market
does not go in alone but it looks for partners and mergers. Till now Pepsi
has collaborated with companies like Quaker Oats, Frito-lays, Lipton,
Starbucks, etc.
Pepsi like Coke has spread all over the world. It is because of this
worldwide spread that now it is coming up with Advertisements which can
be broadcasted in the different nations in the world. The recent example
with would be the Pepsi advertisements having David Beckham as it
brand ambassador.
Promotion
Promotion is one of the four aspects of marketing. Promotion comprises
four subcategories:
1. Advertising
2. Personal selling
3. Sales promotion
4. Publicity and public relations
Pepsi started with its blind taste tests known as the Pepsi Challenge. The
challenge is designed to be a direct response to critics who allege that
Coca-Cola and Pepsi-Cola are identical drinks, with no meaningful
differences. The challenge takes the form of a taste test. At malls,
shopping centers and other public locations, a Pepsi representative sets
up a table with two blank cups, one containing Pepsi and one with Coke.
Shoppers are encouraged to taste both colas, and then select which drink
they prefer. Then the representative reveals the two bottles so the taster
can see whether they preferred Coke or Pepsi. If Pepsi is revealed, the
shopper is given a small prize.
Also ad-campaigns are put up on the television by both the players. The
following statistic just tells of much of share of ads on TV are captured by
these players.
===============================================
=================================
Q 3.Choose any well-known company and study the micro
environment and macro environment for the same.
Micro Environment of Pepsi
The Company
PepsiCo
Supplier
Haidiri Beverages Private Limited, Pakistan

Marketing Intermediaries
The Haidiri Beverages Group was set up in 1979 and is Pepsi's sole selling
agent for District Rawalpindi and Islamabad. It is based in the CDA
Industrial Triangle, Kahuta Road, Islamabad. It manages the supply for
several wholesalers, retailers, restaurants, hotels and other such food

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outlets. In order to achieve the projected sales targets effectively, the
organization ensures a comprehensive strategic alignment with the overall
Pepsi Cola’s business strategy.
Customers
Pepsi customers are mostly young group between the ages of 14 to 30.
Competitors
• Coca Cola
• RC Cola
• Red Bull
• Nestle Water
Publics
There are a lots of public are included. Such as channels, investment
houses, radio stations, newspapers, minority groups, general public etc
and also internal publics include workers, board of directors, managers
and so on.
GEO, ARY, STAR ONE etc.
Sunday Magazine, Fashion Magazine, Newsletters etc.
Radio and Newspapers.
PepsiCo organizing Meetings, Seminars, Exhibitions for the awareness of
the local public

Macro Environment of Pepsi

Demographic Forces
Age: The potential customers of Pepsi would be of age group of 14 - 30
years.
Income:
As for the income levels, Pepsi targets the middle class to the upper class.
Economical Forces
When the economy of the consumer is low and the expenses becomes
high so that consumers move towards another product which is lower in
price than the PepsiCo product.
Natural Forces
Due to any disaster, earthquake and some shortage by the marketers or
suppliers so it’s affected their product and market.
Technology Forces
There is huge investment from the government to develop the
infrastructure, opportunities and the creation of new products such as new
advanced formulas, new technological factors changed so that it is very
much effected by their product.
Political and Legal
Pakistan is a politically stable economy; as a result foreign investors are
attracted to Pakistan as diversification strategies. The Pakistani
government is on a regular effort improving business relations with trade
and investment partners in US and Asia.
Cultural Forces
Due to Islamic Cultural values people prefer to use products made from
Halal ingredients.
===============================================
=================================
Q 4.Write a short note on consumer buying behavior.
Buying Behavior is the decision processes and acts of people involved in

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buying and using products.
Need to understand:
Why consumers make the purchases that they make?
What factors influence consumer purchases?
The changing factors in our society.
Consumer Buying Behavior refers to the buying behavior of the ultimate
consumer. A firm needs to analyze buying behavior for:
Buyers reactions to a firms marketing strategy has a great impact on the
firms success.
The marketing concept stresses that a firm should create a Marketing Mix
(MM) that satisfies (gives utility to) customers, therefore need to analyze
the what, where, when and how consumers buy.
Marketers can better predict how consumers will respond to marketing
strategies.
Six Stages to the Consumer Buying Decision Process (For complex
decisions). Actual purchasing is only one stage of the process. Not all
decision processes lead to a purchase. All consumer decisions do not
always include all 6 stages, determined by the degree of
complexity...discussed next.
The 6 stages are:
1. Problem Recognition (awareness of need)—
Difference between the desired state and the actual condition. Deficit
in assortment of products. Hunger--Food. Hunger stimulates your
need to eat.
Can be stimulated by the marketer through product information--did
not know you were deficient? I.E., see a commercial for a new pair of
shoes, stimulates your recognition that you need a new pair of shoes.
2. Information search—
Internal search, memory.
External search if you need more information. Friends and relatives
(word of mouth). Marketer dominated sources; comparison shopping;
public sources etc.
A successful information search leaves a buyer with possible
alternatives, the evoked set.
Hungry, want to go out and eat, evoked set is
Chinese food
Indian food
Burger king
Klondike kates etc
3. Evaluation of Alternatives—
need to establish criteria for evaluation, features the buyer wants or
does not want. Rank/weight alternatives or resume search. May
decide that you want to eat something spicy, indian gets highest rank
etc.
If not satisfied with your choice then return to the search phase. Can
you think of another restaurant? Look in the yellow pages etc.
Information from different sources may be treated differently.
Marketers try to influence by "framing" alternatives.
4. Purchase decision—
Choose buying alternative, includes product, package, store, method
of purchase etc.

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5. Purchase—
May differ from decision, time lapse between 4 & 5, product
availability.
Post-Purchase Evaluation--outcome:
6. Satisfaction or Dissatisfaction
:Cognitive Dissonance, have you made the right decision. This can be
reduced by warranties, after sales communication etc.
After eating an Indian meal, may think that really you wanted a
chinese meal instead.
Types of Consumer Buying Behavior
Types of consumer buying behavior are determined by:
Level of Involvement in purchase decision. Importance and intensity of
interest in a product in a particular situation.
Buyers level of involvement determines why he/she is motivated to seek
information about a certain products and brands but virtually ignores
others.
High involvement purchases--Honda Motorbike, high priced goods,
products visible to others, and the higher the risk the higher the
involvement. Types of risk:
• Personal risk
• Social risk
• Economic risk
The four type of consumer buying behavior are:
1. Routine Response/Programmed Behavior--buying low involvement
frequently purchased low cost items; need very little search and
decision effort; purchased almost automatically. Examples include
soft drinks, snack foods, milk etc.
2. Limited Decision Making--buying product occasionally. When you
need to obtain information about unfamiliar brand in a familiar
product category, perhaps. Requires a moderate amount of time for
information gathering. Examples include Clothes--know product class
but not the brand.
3. Extensive Decision Making/Complex high involvement, unfamiliar,
expensive and/or infrequently bought products. High degree of
economic/performance/psychological risk. Examples include cars,
homes, computers, education. Spend a lot of time seeking
information and deciding.
4. Information from the companies MM; friends and relatives, store
personnel etc. Go through all six stages of the buying process.
Impulse buying, no conscious planning.
The purchase of the same product does not always elicit the same Buying
Behavior. Product can shift from one category to the next.
For example:
Going out for dinner for one person may be extensive decision making (for
someone that does not go out often at all), but limited decision making for
someone else. The reason for the dinner, whether it is an anniversary
celebration, or a meal with a couple of friends will also determine the
extent of the decision making.
A consumer, making a purchase decision will be affected by the following
three factors:
• Personal

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• Psychological
• Social
The marketer must be aware of these factors in order to develop an
appropriate MM for its target market.
Return to Contents List
Personal
Unique to a particular person. Demographic Factors. Sex, Race, Age etc.
Who in the family is responsible for the decision making.
Young people purchase things for different reasons than older people.
Handout...From choices to checkout...
Highlights the differences between male and female shoppers in the
supermarket.
Return to Contents List
• Psychological factors
• Psychological factors include:
Motives—
A motive is an internal energizing force that orients a person's activities
toward satisfying a need or achieving a goal.
Actions are effected by a set of motives, not just one. If marketers can
identify motives then they can better develop a marketing mix.
MASLOW hierarchy of needs!!
Physiological
Safety
Love and Belonging
Esteem
Self Actualization
Need to determine what level of the hierarchy the consumers are at to
determine what motivates their purchases.
Handout...Nutrament Debunked...
Nutrament, a product marketed by Bristol-Myers Squibb originally was
targeted at consumers that needed to receive additional energy from their
drinks after exercise etc., a fitness drink. It was therefore targeted at
consumers whose needs were for either love and Belonging or esteem.
The product was not selling well, and was almost terminated. Upon
extensive research it was determined that the product did sell well in
inner-city convenience stores. It was determined that the consumers for
the product were actually drug addicts who couldn't not digest a regular
meal. They would purchase Nutrament as a substitute for a meal. Their
motivation to purchase was completely different to the motivation that B-
MS had originally thought. These consumers were at the Physiological
level of the hierarchy. BM-S therefore had to redesign its MM to better
meet the needs of this target market.
Motives often operate at a subconscious level therefore are difficult to
measure.
Perception—
What do you see?? Perception is the process of selecting, organizing and
interpreting information inputs to produce meaning. IE we chose what info
we pay attention to, organize it and interpret it.
Information inputs are the sensations received through sight, taste,
hearing, smell and touch.
Selective Exposure-select inputs to be exposed to our awareness. More

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likely if it is linked to an event, satisfies current needs, intensity of input
changes (sharp price drop).
Selective Distortion-Changing/twisting current received information,
inconsistent with beliefs.
Advertisers that use comparative advertisements (pitching one product
against another), have to be very careful that consumers do not distort the
facts and perceive that the advertisement was for the competitor. A
current example...MCI and AT&T...do you ever get confused?
Selective Retention-Remember inputs that support beliefs, forgets those
that don't.
Average supermarket shopper is exposed to 17,000 products in a
shopping visit lasting 30 minutes-60% of purchases are unplanned.
Exposed to 1,500 advertisement per day. Can't be expected to be aware
of all these inputs, and certainly will not retain many.
Interpreting information is based on what is already familiar, on knowledge
that is stored in the memory.
Handout...South Africa wine....
Problems marketing wine from South Africa. Consumers have strong
perceptions of the country, and hence its products.
Ability and Knowledge—
Need to understand individuals capacity to learn. Learning, changes in a
person's behavior caused by information and experience. Therefore to
change consumers' behavior about your product, need to give them new
information re: product...free sample etc.
South Africa...open bottle of wine and pour it!! Also educate American
consumers about changes in SA. Need to sell a whole new country.
When making buying decisions, buyers must process information.
Knowledge is the familiarity with the product and expertise.
Inexperience buyers often use prices as an indicator of quality more than
those who have knowledge of a product.
Non-alcoholic Beer example: consumers chose the most expensive six-
pack, because they assume that the greater price indicates greater
quality.
Learning is the process through which a relatively permanent change in
behavior results from the consequences of past behavior.
Attitudes—
Knowledge and positive and negative feelings about an object or activity-
maybe tangible or intangible, living or non- living.....Drive perceptions
Individual learns attitudes through experience and interaction with other
people.
Consumer attitudes toward a firm and its products greatly influence the
success or failure of the firm's marketing strategy.
Handout...Oldsmobile.....
Oldsmobile vs. Lexus, due to consumers attitudes toward Oldsmobile (as
discovered by class exercise) need to disassociate Aurora from the
Oldsmobile name.
Exxon Valdez-nearly 20,000 credit cards were returned or cut-up after the
tragic oil spill.
Honda "You meet the nicest people on a Honda", dispel the unsavory
image of a motorbike rider, late 1950s. Changing market of the 1990s,
baby boomers aging, Hondas market returning to hard core. To change

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this they have a new slogan "Come ride with us".
Attitudes and attitude change are influenced by consumers personality
and lifestyle.
Consumers screen information that conflicts with their attitudes. Distort
information to make it consistent and selectively retain information that
reinforces our attitudes. IE brand loyalty.
There is a difference between attitude and intention to buy (ability to buy).
Personality—
All the internal traits and behaviors that make a person unique,
uniqueness arrives from a person's heredity and personal experience.
Examples include:
• Workaholism
• Compulsiveness
• Self confidence
• Friendliness
• Adaptability
• Ambitiousness
• Dogmatism
• Authoritarianism
• Introversion
• Extroversion
• Aggressiveness
• Competitiveness.
Traits effect the way people behave. Marketers try to match the store
image to the perceived image of their customers.
There is a weak association between personality and Buying Behavior; this
may be due to unreliable measures. Nike ads. Consumers buy products
that are consistent with their self concept.
Lifestyles—
Recent US trends in lifestyles are a shift towards personal independence
and individualism and a preference for a healthy, natural lifestyle.
Lifestyles are the consistent patterns people follow in their lives.
EXAMPLE healthy foods for a healthy lifestyle. Sun tan not considered
fashionable in US until 1920's. Now an assault by the American Academy
of Dermatology.
===============================================
=================================
Q 5. Company A has homogeneous consumer preferences in the
market; Company B sells different variants of soaps, while
Company C is a small firm with constrained resources. What do
you think is the most suitable market coverage strategy for the all
the three companies.
One of the most important decisions that a company makes is what
market coverage strategy to use for a brand. In analyzing any one
product, the first thing to consider is the market. In case of company A,
market is too broad to segment effectively (since it homogeneous
consumer preferences), so it makes sense to narrow the market to what
can be called a focus market, in this case the consumer preferences for
market. In a sense, the focus market rules out products that are not
substitutes. For example, a marketing analysis for Gatorade (which has

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about a 90% market share) should not exclude water since that is a
substitute for a sports drink and a possible source of new sales. Otherwise
the analysis would be stuck with a market definition of sports drinks and
thus virtually no practical way of increasing sales.
Consumer segmentation variables include demographics (e.g., age,
gender and family life cycle), psychographics (e.g., self concept and
lifestyle), usage rate (e.g., heavy and light users) and benefits sought. In
this case benefits sought may be batteries for normal vs. high-drain
devices.
Company “A” has three basic choices for market coverage strategy:
Undifferentiated—ignore segmentation variables and go after the whole
market with one brand.
Differentiated—operate in all or several segments of the market and
design separate brands for each.
Concentrated—operate in one or only a few segments of the larger market
following a niche strategy with one brand.
A way of telling what market coverage strategy a company is using is the
number of separately-branded products that it offers in any one market.
Gap could have regional variation in product assortments (say for different
climates), but if there was only one Gap name, the market coverage
strategy would be undifferentiated.
Once a company chooses a market coverage strategy for a brand it knows
its target market. A concentrated market coverage strategy leads to one
target market as does an undifferentiated market coverage strategy. A
differentiated market coverage strategy leads to as many target markets
as there are brands.
A company must be sure to avoid the trap of defining a target market by
who is in that market before analyzing the needs and wants of the target
market. That's why we say that what the market is comes first, and then
the choice of a market coverage strategy.
For company B, which sells different variant of soap, the growth is not as
high as there is expansion in the market for soaps. The cash cows for HLL
include Lifebouy, Lux, Liril, Rexona and Breeze. The company's premium
soap include Dove, Pears. The company has come up with a new product
offering i.e. Fair & Lovely soap. The strategy for 2006-07 would be to
increase the market share from existing 63% to 70%. The strategic
changes taking 4 P's into consideration would be:
Product: I would continue with the existing portfolio of the products and
would concentrate on coming with new fragrances on different soaps than
launching new soaps. I would position Dove and Lux International soap
very urban rich women who are extra conscious for their complexion.
Pears, Lux International would be positioned for the urban and rural rich.
For the consuming urban class, Liril, Rexona, Pears and Lifebouy
International would be positioned. I would also come up with 40gm
packaging for different products. I will also be thinking of extending
popular brands of cosmetics in the soap segment by that decision would
be based on the popularity and acceptance of that particular brand (Brand
Extension).
Price: I would be try to customize the packaging of various products on the
basis of price points. e.g. I will come up with the pricing of Rs 5, Rs 10 and
Rs 15 for different products. I would try to experiment it with the products

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positioned for consuming class.
Promotion: For promotion, apart from continuing the existing strategy of
concentrating on T.V. channels, I would try to focus on the promotional
campaign in rural sector. I would also concentrate on promoting through
radio and sponsoring the programs e.g. 'Krishi Darshan' and 'Aap ka
Swasthaya' programs that have greater number of audience. The
advertising for them would have a pastoral and cultural looks.
Place: As the marketing channels of the company are already established I
would try to increase the penetration in the rural sector to the extreme
remote areas which are not touched till now. I would try to reduce the
delivery time of the products by choosing and increasing the strategic
locations of warehouses.
In case of company ‘C’, which is small firm, which constrained resources, It
is often argued that governments should promote SMEs because of their
greater economic benefits compared to large firms-in terms of job
creation, efficiency, and growth.
Share of Firms and Employment. In most developing countries,
microenterprises and small-scale enterprises account for the majority of
firms and a large share of employment. In Ecuador, for exaMple, firms with
fewer than 50 employees accounted for 99 percent of firms and 55
percent of employment in 1980; in Bangladesh, enterprises with fewer
than 100 workers accounted for 99 percent of enterprises and 58 percent
of employment in 1986.
Labor Intensity. Small firms employ a large share of the labor force in
many developing countries, but are they more labor demanding than large
firms (for a given scale of production)? Many analysts argue that, within
industries, SMEs are more labor intensive than large firms. However, the
evidence suggests that enterprise scale is an unreliable guide to labor
intensity: many small firms are in fact more capital-intensive than larger
firms in the same industry.! Labor intensity exhibits more variation across
industries than among firm-size groups within industries-leading some
authors to suggest that efforts to make economic growth more labor-
demanding should focus on altering the pattern of demands in favor of
labor-intensive industries rather than on supply-side efforts to change the
size distribution of firms.
Job Creation. Apart from labor intensity, it is often argued that SMEs are
important for employment growth, i.e., job creation. Here again, the
evidence does not support the conventional wisdom. While gross job
creation rates are substantially higher for small firms, so are gross
destruction rates. This is because small firms exhibit high birthrates and
high death rates, and many small firms fail to grow. In developed
countries, net job creation rates i(gross job creation less gross job
destruction) do not exhibit a systematic relationship to firm size.3 For
example, in the United States between 1973 and 1988, despite a
widespread belief to the contrary, small manufacturing firms did not
consistently create more jobs on a net basis (after allowing for jobs
eliminated and 4 firms that went out of business) than large firms. There is
some evidence that the same conclusion holds for developing economies.
Efficiency. Measures of enterprise efficiency (e.g., labor productivity or
total factor productivity) vary greatly 'both within and across industries.
Firm size may be associated with some other factors that are correlated

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with efficiency, such as management skill and technology, and the effects
of the policy environment. Wages and Benefits. While there are many
exceptions to the basic pattern, the weight of evidence suggests that
larger employers offer better jobs in terms of wages, fringe benefits,
working conditions, and opportunities for skills enhancement, as well as.
Social, Political, and Equity Justifications. SMEs are often said to contribute
to a more equal distribution of income or wealth. To the extent that SME
owners and workers are in the lower half of the income distribution,
promoting the growth of SMEs may lead to a more equitable distribution of
income. It is often argued that SME promotion is justified on grounds of the
job-creating prowess of SMEs or of their greater efficiency and growth.
Attempts are often made to draw a causal link between SMEs and poverty
alleviation so as to justify policies and subsidies in favor of SMEs. But the
empirical evidence supporting many of these claims is very mixed, making
it difficult to justify SME promotion on the basis of inherent economic
benefits of smallness.
===============================================
=================================
Q 6. Describe various bases for positioning the product with
example.
Three bases of positioning can be distinguished
• Functional (solve problem, provide benefits to customers)
• Symbolic (Self-image enhancement, ego identification,
belongingness and social meaningfulness, affective fulfillment)
• Experiential (provide sensory stimulation; provide cognitive
stimulation)
Steps in product positioning process
• Identify competing products
• Identify the attributes, also called dimensions that define the
product ‘space’
• Collect information from a sample of customers about their
perceptions of each product on the relevant attributes
• Collect information from a sample of customers about their
perceptions of each product on the relevant attributes
• Determine the share of mind of each product
• Determine the current location of each product in the product
space
• Determine the target market’s preferred combination of attributes.
These are called: an ideal vector.
• Examine the fit between: the positions of competing products, the
position of your product and the position of the ideal vector
• Select the optimum position
• Three positioning strategies
Reverse Positioning: This method removes ‘sacred product attributes.
Simultaneously nes attributes are added that would typically be found
only in highly augmented product. For example IKEA is not delivering to
your home the products which you have bought, and it offers no sales
consultancy.
Breakaway positioning: This method associates the product with a
radically different category. By manipulating the cues of consumers of

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how they perceive and categorize a product, a firm can change how they
perceive and categorize a product; a firm can change how consumers
frame a product.
Stealth Positioning: This variant gradually interests consumers for a
new offering, by hiding the products true nature. For example Sony’s
AIBO robot was positioned as a lovable pet. This shifted consumer’s
attention away from its major limitations as a household aide. It
apparently even turned elderly people into early technology adopters.

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Set 2

Q 1.Write a short note on product life cycle.

The product life cycle goes through many phases, involves many
professional disciplines, and requires many skills, tools and processes.
Product life cycle (PLC) has to do with the life of a product in the market
with respect to business/commercial costs and sales measures; whereas
product life cycle management (PLM) has more to do with managing
descriptions and properties of a product through its development and
useful life, mainly from a business/engineering point of view. To say that a
product has a life cycle is to assert four things: 1) that products have a
limited life, 2) product sales pass through distinct stages, each posing
different challenges, opportunities, and problems to the seller, 3) profits
rise and fall at different stages of product life cycle, and 4) products
require different marketing, financial, manufacturing, purchasing, and
human resource strategies in each life cycle stage.
The different stages in a product life cycle are:
1. Market introduction stage
I. costs are high
II. slow sales volumes to start
III. little or no competition - competitive manufacturers watch for
acceptance/segment growth losses
IV. demand has to be created
V. customers have to be prompted to try the product
VI. makes no money at this stage
2. Growth stage
I. costs reduced due to economies of scale
II. sales volume increases significantly
III. profitability begins to rise
IV. public awareness increases
V. competition begins to increase with a few new players in
establishing market
VI. increased competition leads to price decreases
3. Mature stage
I. Costs are lowered as a result of production volumes increasing
and experience curve effects
II. sales volume peaks and market saturation is reached
III. increase in competitors entering the market
IV. prices tend to drop due to the proliferation of competing
products
V. brand differentiation and feature diversification is emphasized
to maintain or increase market share
VI. Industrial profits go down
4. Saturation and decline stage
I. costs become counter-optimal
II. sales volume decline or stabilize
III. prices, profitability diminish
IV. profit becomes more a challenge of production/distribution
efficiency than increased sales
Request for Deviation
In the process of building a product following defined procedure, an RFD is

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a request for authorization, granted prior to the manufacture of an item, to
depart from a particular performance or design requirement of a
specification, drawing or other document, for a specific number of units or
a specific period of time.
Market Identification
A "micro-market" can be used to describe a Walkman, more portable, as
well as individually and privately recordable; and then Compact Discs
("CDs") brought increased capacity and CD-R offered individual private
recording...and so the process goes. The below section on the "technology
lifecycle" is a most appropriate concept in this context.[clarification
needed] Most of the context is not in English so you may need a translator.
[clarification needed]
In short, termination is not always the end of the cycle; it can be the end
of a micro-entrant within the grander scope of a macro-environment. The
auto industry, fast-food industry, petro-chemical industry, are just a few
that demonstrate a macro-environment that overall has not terminated
even while micro-entrants over time have come and gone.
It is claimed that every product has a life cycle. It is launched, it grows,
and at some point, may die. A fair comment is that - at least in the short
term - not all products or services die. Jeans may die, but clothes probably
will not. Legal services or medical services may die, but depending on the
social and political climate, probably will not.
Even though its validity is questionable, it can offer a useful 'model' for
managers to keep at the back of their mind. Indeed, if their products are in
the introductory or growth phases, or in that of decline, it perhaps should
be at the front of their mind; for the predominant features of these phases
may be those revolving around such life and death. Between these two
extremes, it is salutary for them to have that vision of mortality in front of
them.
However, the most important aspect of product life-cycles is that, even
under normal conditions, to all practical intents and purposes they often
do not exist (hence, there needs to be more emphasis on model/reality
mappings). In most markets the majority of the major brands have held
their position for at least two decades. The dominant product life-cycle,
that of the brand leaders which almost monopolize many markets, is
therefore one of continuity.
In the criticism of the product life cycle, Dhalla & Yuspeh state:
The PLC is a dependent variable which is determined by market actions; it
is not an independent variable to which companies should adapt their
marketing programs. Marketing management itself can alter the shape
and duration of a brand's life cycle.[1]
Thus, the life cycle may be useful as a description, but not as a predictor;
and usually should be firmly under the control of the marketer. The
important point is that in many markets the product or brand life cycle is
significantly longer than the planning cycle of the organizations involved.
Thus, it offers little practical value for most marketers. Even if the PLC
(and the related PLM support) exists for them, their plans will be based
just upon that piece of the curve where they currently reside (most
probably in the 'mature' stage); and their view of that part of it will almost
certainly be 'linear' (and limited), and will not encompass the whole range
from growth to decline.

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===============================================
=================================
Q 2. Explain various categories of brand sponsorship with example.
Sponsorship plays a significant role in the planning and execution of any
brand promotion. Sponsors consider return on investment (ROI) when
measuring the value of sponsorships. And the most important elements
include awareness and financial benefits. For the Taste of Chicago 2007, a
total of 69 sponsors across 12 different sponsorship categories supported
the event.
Christine Jacob, senior manager of corporate sponsorships in the Mayor’s
Office of Special Events in Chicago, supports numerous programs
throughout the year. But for the Taste, her goal is to identify sponsors and
secure/negotiate terms early to help maximize the event's total revenue.
Sponsorship categories at the Taste include the following:
Presenting ($750,000)
Family Village ($125,000)
3rd of July ($125,000)
Official Credit Card ($90,000)
Taste Stage ($90,000)
Concert: 1 per night (customized)
Gourmet Dining Pavilion ($50,000)
Dining Pavilion ($40,000)
Participating ($30,000)
On-Site: 10 days ($25,000)
On-Site: 1 day ($5,000)
Media: in-kind value ($120,000)
Of course, sponsors are savvy and measure the benefits of participating in
a community festival against their own business objectives.
For example, some sponsors use the Taste as an opportunity to brand
themselves with some of the entertainment options to expand their
visibility with event attendees. The result: Humana Senior Pavilion,
Dominick’s Cooking Corner, Gallo Wine Pavilion (part of Gourmet Dining).
How to Secure Sponsors
Because the Taste of Chicago is an established annual event, sponsorship
renewals typically begin in September for the following year with contract
commitments by December.
“We’re fortunate that Taste is what it is,” Jacob explains. “People call us –
which is great. It’s a marketer’s dream to be part of Taste.”
When the programming committee for the Taste meets each year in the
fall, they consider new programming areas and that’s when the
sponsorship team begins to integrate these ideas into the their platform.
In 2007, the Taste included three new areas: Goin’ Green Pavillion, Sports
Pavilion, and a International Pavilion. If a sponsor isn’t identified, the
category is simply sponsored by the city, and the benefits are measured
and used to find a sponsor for the following year (as long as for the next
year).
If sponsors do not commit by year end or drops out for any reason, it’s
time for the sponsorship team to pursue new sponsors.
“That could mean cold calls and pitches,” Jacobs explains. “For example, if
an automotive sponsor drops out, we’ll approach another automotive
sponsor who we’ve worked with in the past.”

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For those approaching sponsorship for the first time or those who are
holding a previous organized event that is now annualized, Jacobs offers
the following tips:
Even if you’re not successful, try to secure a first year sponsor.
Sponsorships must be identified as part of the initial planning phase.
Brainstorm program elements early to allow maximum time to secure
sponsors.
Identify the value of each category; reinforce the benefits of a previously
held program and its sponsorship levels.
Create a fact sheet for each property/individual sponsorship category.
Offer higher level sponsors the right of first refusal. Majority of sponsors
are either participation or onsite. Many renew all sponsorships at least six
months prior to the event.
Secure new/replacement sponsors at least three months prior to the
event.
Hold weekly or regular meetings to communicate sponsor status and
renewals.
Common Elements in a Sponsorship Package
Sponsors consider return on investment (ROI) when measuring the value
of sponsorships. And the most important elements include awareness and
financial benefits.
Nevertheless, event planners who organize community events such as a
food festival will determine sponsorship levels and direct benefits from the
organizer to help support those ROI objectives. Depending on the
sponsorship level, visibility included in the Taste may include any portion
or all of the following:
Signage/banner opportunities (stage, railing, towers, street pole, etc.)
Corporate logo on main stage
Category exclusivity
Promotional tent
Advertisement in program materials
Status level on event brochure
Corporate logo on event advertisements
Corporate logo at ticket windows
Mentions in radio advertising
Priority seating tickets
Use of corporate hospitality tents
Main stage presentations
Main stage mentions
Opportunity to bring inflatable for increased visibility
Corporate press releases with event press kits
Parking and delivery permits
Invitations to press preview party
Opportunity to distribute pre-approved sample items
Benefits of Sponsorship
While “cash” may seem like the most obvious reason to secure sponsors,
many other benefits exist for incorporating sponsorship categories into a
community food festival, according to Jacob:
Concert sponsorship helps bring top name artists.
Corporate sponsorships enhance programming.
The Value of In-Kind Offers

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To be sure, sponsoring an established event like the Taste is beneficial to
both sponsor and organizer, so in-kind offers can sometimes be viewed as
cash. Some examples that Jacob suggests include the following:
Media sponsors to provide TV, radio and print advertising.
Radio sponsors to offset talent expenses.
Airline sponsors to provide seats for out of town entertainment.
Hotels to provide complimentary guest rooms for entertainment.
Another important factor when identifying sponsors for a family event:
“We do not have any ‘sin’ categories. We avoid tobacco and sex related
sponsors,” Jacob says. “And because this is a food festival, no food
sampling is allowed.”
For anyone who is considering an event like this for the first time, Jacob
recommends doing a lot of research, and suggests that planners consider
using an experienced firm to find out how other people do it.
===============================================
=================================
Q 3.Explain the product mix pricing strategies with example.
Pricing is one of the most important elements of the marketing mix, as it is
the only mix, which generates a turnover for the organization. The
remaining 3p’s are the variable cost for the organization. It costs to
produce and design a product; it costs to distribute a product and costs to
promote it. Price must support these elements of the mix. Pricing is
difficult and must reflect supply and demand relationship. Pricing a
product too high or too low could mean a loss of sales for the organization.
Pricing should take into account the following factors:
• Fixed and variable costs.
• Competition
• Company objectives
• Proposed positioning strategies.
• Target group and willingness to pay.

Types of Pricing Strategies

An organization can adopt a number of pricing strategies. The pricing
strategies are based much on what objectives the company has set itself
to achieve.
Penetration pricing: Where the organization sets a low price to increase
sales and market share.
Skimming pricing: The organization sets an initial high price and then
slowly lowers the price to make the product available to a wider market.
The objective is to skim profits of the market layer by layer.
Competition pricing: Setting a price in comparison with competitors.
Product Line Pricing: Pricing different products within the same product
range at different price points. An example would be a video manufacturer
offering different video recorders with different features at different prices.
The greater the features and the benefit obtained the greater the
consumer will pay. This form of price discrimination assists the company in
maximizing turnover and profits.
Bundle Pricing: The organization bundles a group of products at a
reduced price.
Psychological pricing: The seller here will consider the psychology of
price and the positioning of price within the market place. The seller will

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therefore charge 99p instead £1 or $199 instead
of $200
Premium pricing: The price set is high to
reflect the exclusiveness of the product. An
example of products using this strategy would
be Harrods, first class airline services, Porsche
etc. Optional pricing: The organization sells
optional extras along with the product to
maximize its turnover. This strategy is used
commonly within the car industry.

===============================================
=================================
Q 4.What are various logistics functions? Describe in brief.
It is important to recognize that the various logistic functions come
together to form the totality of logistics support. A NATO logistician of one
discipline will often work with a staff officer of another discipline and, as a
very minimum, will have to appreciate the other's responsibilities and
problems. For example, logistic planning originates in national, NATO or
MNC policy guidance and has to be coordinated with all the staff branches
concerned, whether they be operational, administrative or logistic, military
or civil.
Materiel Function of Logistics
Production or acquisition logistics covers materiel, from the first phase of
the life cycle to its final disposal from the inventory. The first part of the
cycle, from specification, design and production is clearly a function of
production logistics. Reception of the equipment into service, its
distribution and storage, repair, maintenance and disposal are clearly a
consumer logistic task. However, the initial design of the equipment which
is part of production logistics has to take account of the consumer aspects
of repair and maintenance, and therefore involves both disciplines.
Supply Function of Logistics
Supply covers all materiel and items used in the equipment, support and
maintenance of military forces (classes of supply are listed at Annex A).
The supply function includes the determination of stock levels,
provisioning, distribution and replenishment.
Maintenance and Repair Function of Logistics
Maintenance means all actions to retain the materiel in or restore it to a
specified condition. The operational effectiveness of land, naval and air
forces will depend to a great extent on a high standard of preventive
maintenance, in peacetime, of the equipment and associated materiel in
use. Repair includes all measures taken to restore materiel to a
serviceable condition in the shortest possible time.

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Battle Damage Repair (BDR)
is an important element in maintaining materiel availability during
operations. It is designed to restore damaged materiel to a battle worthy
condition, irrespective of the cause of the failure, as quickly as possible.
Damage assessment has to be done rapidly and must not always require
the use of automated test equipment or sophisticated tools. The
considerations are primarily aimed at limiting the damage, determining
the cause of the damage, establishing a plan for damage repair, and
minimizing the risk to equipment and operators. Once the operational
mission has been accomplished, BDR must be followed by specialized
maintenance or repair to restore the equipment to fully serviceable
condition.
Service Function of Logistics
The provision of manpower and skills in support of combat troops or
logistic activities includes a wide range of services such as combat
resupply, map distribution, labor resources, postal and courier services,
canteen, laundry and bathing facilities, burials, etc. These services may be
provided either to one's own national forces or to those of another nation
and their effectiveness depends on close cooperation between
operational, logistic and civil planning staffs.
Explosive Ordnance Disposal (EOD) Function of Logistics
EOD involves the investigation, detection, location, marking, initial
identification and reporting of suspected unexploded ordnance, followed
by the on-site evaluation, rendering safe, recovery and final disposal of
unexploded explosive ordnance. It may also include explosive ordnance
which has become hazardous by damage or deterioration. The NATO EOD
Technical Information Centre (EODTIC) holds records of all past and
present ammunition and explosives, and provides an immediate advisory
service on EOD problems.
Movement and Transportation Function of Logistics
It is a requirement that a flexible capability exists to move forces in a
timely manner within and between theatres to undertake the full spectrum
of Alliance roles and missions. It also applies to the logistic support
necessary to mount and sustain operations.
Engineering Function of Logistics
The area of logistic engineering, while not exclusively a logistic function
will require close coordination with logistics as the mission is very closely
aligned with logistics in terms of facilitating the logistic mission of opening
lines of communication and constructing support facilities. The
engineering mission bridges the gap from logistics to operations and is
closely related to the ultimate success of both. The acquisition,
construction and operation of facilities form the basis for the NISP. This is
the term generally used in NATO for installations and facilities for the
support of military forces.
Medical Function of Logistics
This function entails the provision of an efficient medical support system
to treat and evacuate sick, injured and wounded personnel, minimize man
days lost due to injury and illness, and return casualties to duty. An
effective medical support system is thus considered a potential force
multiplier. Though medical support is normally a national responsibility,
planning must be flexible and consider coordinated multinational

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approaches to medical support. The degree of multi-nationality will vary
depending on the circumstances of the mission, and be dependent upon
the willingness of nations to participate in any aspect of integrated
medical support.
Contracting Function of Logistics
Contracting has become increasingly important to the conduct of
operations, particularly when operating beyond NATO's area of
responsibility. It is a significant tool that may be employed to gain fast
access to in-country resources by procuring the supplies and services that
the NATO Commander requires.
Budget and Finance Function of Logistics

The areas of budget and finance impact virtually every aspect of logistic
operations. The funding and budget policies to pay for deployment and
sustainment and redeployment are unique. While nations are generally
expected to finance their own operations.
===============================================
=================================
Q 5.What is IMC? Describe the communication development process in
brief.
A management concept that is designed to make all aspects of marketing
communication such as advertising, sales promotion, public relations, and
direct marketing work together as a unified force, rather than permitting
each to work in isolation.
It aims to ensure consistency of message and the complementary use of
media. The concept includes online and offline marketing channels. Online
marketing channels include any e-marketing campaigns or programs, from
search engine optimization (SEO), pay-per-click, affiliate, email, and
banner to latest web related channels for webinar, blog, micro-blogging,
RSS, podcast, and Internet TV. Offline marketing channels are traditional
print (newspaper, magazine), mail order, public relations, industry
relations, billboard, radio, and television. A company develops its
integrated marketing communication program using all the elements of
the marketing mix (product, price, place, and promotion).
Integrated marketing communication is integration of all marketing tools,
approaches, and resources within a company which maximizes impact on
consumer mind and which results into maximum profit at minimum cost.
Generally marketing starts from "Marketing Mix". Promotion is one
element of Marketing Mix. Promotional activities include advertising (by
using different medium), sales promotion (sales and trades promotion),
and personal selling activities. It also includes internet marketing,
sponsorship marketing, direct marketing, database marketing and public
relations. And integration of all these promotional tools along with other
components of marketing mix to gain edge over competitor is called
Integrated Marketing Communication.
Reasons for the Growing Importance of IMC
• Several shifts in the advertising and media industry have caused IMC
to develop into a primary strategy for marketers:
• From media advertising to multiple forms of communication.
• From mass media to more specialized (niche) media, which are
centered around specific target audiences.

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• From a manufacturer-dominated market to a retailer-dominated,
consumer-controlled market.
• From general-focus advertising and marketing to data-based
marketing.

• From low agency accountability to greater agency accountability,

particularly in advertising.
• From traditional compensation to performance-based compensation
(increased sales or benefits to the company).
• From limited Internet access to 24/7 Internet availability and access
to goods and services.
Selecting the Most Effective Communications Elements
The goal of selecting the elements of proposed integrated marketing
communications is to create a campaign that is effective and consistent
across media platforms. Some marketers may want only ads with the
greatest breadth of appeal: the executions that, when combined, provide
the greatest number of attention-getting, branded, and motivational
moments. Others may only want ads with the greatest depth of appeal:
the ads with the greatest number of attention-getting, branded, and
motivational points within each.
Although integrated marketing communications is more than just an
advertising campaign, the bulk of marketing dollars is spent on the
creation and distribution of advertisements. Hence, the bulk of the
research budget is also spent on these elements of the campaign. Once
the key marketing pieces have been tested, the researched elements can
then be applied to other contact points: letterhead, packaging, logistics,
customer service training, and more, to complete the IMC cycle.
===============================================
=================================
Q 6.What are alternative approaches to marketing while going
international? Study Pepsi’s international marketing strategy.
Markets and marketing are becoming ever more international in their
nature and managers around the world ignore this fact at their peril. To
achieve sustainable growth in markets that are becoming increasingly
global, or merely to survive in domestic markets that are increasingly
attacked by international players, it is essential that organizations
understand the complexity and diversity of international marketing and
that their managers develop the skills, aptitudes and knowledge necessary
to compete effectively around the globe.
A company must learn how to enter foreign markets and increase their
global competitiveness. Firms that do venture abroad find the
international marketplace far different from the domestic one. Market
sizes, buyer behavior and marketing practices all vary, meaning that
international marketers must carefully evaluate all market segments in
which they expect to compete.
Whether to compete globally is a strategic decision (strategic intent) that
will fundamentally affect the firm, including its operations and its
management. For many companies, the decision to globalize remains an
important and difficult one (global strategy and action). Typically, there
are many issues behind a company`s decision to begin to compete in
foreign markets. For some firms, going abroad is the result of a deliberate

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policy decision (exploiting market potential and growth); for others, it is a
reaction to a specific business opportunity (global financial turmoil, etc.) or
a competitive challenge (pressuring competitors). But, a decision of this
magnitude is always a strategic proactive decision rather than simply a
reaction (learning how to business abroad). Reasons for global expansion
are mentioned below:
a) Opportunistic global market development (diversifying markets)
b) Following customers abroad (customer satisfaction)
c) Pursuing geographic diversification (climate, topography, space,
etc.)
d) Exploiting different economic growth rates (gaining scale and
scope)
e) Exploiting product life cycle differences (technology)
f) Pursuing potential abroad
g) Globalizing for defensive reasons
h) Pursuing a global logic or imperative (new markets and profits)
Moreover, there can be several reasons to be mentioned including
comparative advantage, economic trends, demographic conditions,
competition at home, the stage in the product life cycle, tax structures and
peace. To succeed in global marketing companies need to look carefully at
their geographic expansion. To some extent, a firm makes a conscious
decision about its extent of globalization by choosing a posture that may
range from entirely domestic without any international involvement
(domestic focus) to a global reach where the company devotes its entire
marketing strategy to global competition. In the development of an
international marketing strategy, the firm may decide to be domestic-only,
home-country, host-country or regional/global-oriented.
Each level of globalization will profoundly change the way a company
competes and will require different strategies with respect to marketing
programs, planning, organization and control of the international
marketing effort. An industry in which firm competes is also important in
applying different strategies. For example, when a firm which competes in
the pharmaeutical industry which is heavily globalized, it has to set its own
strategies to deal with global competitors. (constant innovation)
Tracking the development of the large global corporations today reveals a
recurring, sequential pattern of expansion. The first step is to understand
the international marketing environment, particularly the international
trade system. Second, the company must consider what proportion of
foreign to total sales to seek, whether to do business in a few or many
countries and what types of countries to enter. The third step is to decide
on which particular markets to enter and this calls for evaluating the
probable rate of return on investment against the level of risk (market
differences). Then, the company has to decide how to enter each
attractive market. Many companies start as indirect or direct export
exporters and then move to licensing, joint-ventures and finally direct
investment; this company evolution has been called the
internationalization process. Companies must next decide on the extent to
which their products, promotion, price and distribution should be adapted
to individual foreign markets. Finally, the company must develop an
effective organization for pursuing international marketing. Most firms
start with an export department and graduate to an international division.

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A few become global companies which means that top management plans
and organizes on a global basis (organization history).
Typically, these companies began their business development phase by
entrenching themselves first in their domestic markets. Often,
international development did not occur until maturity was reached
domestically. After that phase, these firms began to turn into companies
with some international business, usually on an export basis. But, this
process may vary dramatically with the size of the domestic market.
Pepsi’s international marketing strategy
When the "You're in the Pepsi Generation" advertising campaign launched
in 1963, it may have been the first time a brand was marketed primarily
with an association to its consumers' inspirational attitudes. A decidedly
youth-oriented strategy, the newest campaign slogan, introduced this
year, is "More Happy," which definitely coincides with one concrete
example of "more" in the packaging of Pepsi products today—more
designs. At least 35 distinct design ideas will grace the packaging of
Pepsi's cans and bottles this year alone, and this design strategy may
continue indefinitely.
Though not "generational" in word, the campaign certainly has a youth-
oriented feel with package designs, advertising, and websites that are fun
and playful. PepsiCo worked closely with Peter Arnell and Arnell Group,
based in New York City, to devise a comprehensive new strategy that
would connect with Pepsi's core consumers. Arnell reinvented the Pepsi
package as a meaningful and appealing communications tool for the latest
generation of youth that are not overwhelmed by media, music, or digital
distractions.
Pepsi actually asked their loyal consumers what brand elements would
have to remain so that they would be intuitively reassured that their
favorite drinks were not changing and the brand they trusted was still
essentially the same. Their answer was direct and consistent. Pepsi-lovers
needed to see three elements for sure—the Pepsi "globe," the iconic Pepsi
blue, and the familiar tilted Pepsi capital letters.
The most recent logo design had the Pepsi wordmark on top of and slightly
overlapping the iconic Pepsi red-white-and-blue "globe." On the previous
can design, the word-mark wrapped halfway around the can, and the
globe was off-center. The new cans and bottles have un-bundled the word
and globe, making the newly centered globe more of the hero, and the
smaller Pepsi word-mark less prominent.
Television ad campaigns are reinforcing the globe-centric approach by
featuring a boulder-sized Pepsi globe in various settings careening to and
fro like a pinball. In the ads and on the front of most of the new packages
is the reassuring tag line: "Same Pepsi inside, new look outside." Miller
explains that it is customary and important to reassure consumers for at
least six months in situations like this.
Today's youth as demanding authenticity from the products they come
into contact with in their day-to-day experiences. The new Pepsi design
strategy is versatile because it can be authentic and stay current, and it
could also make introducing special seasonal or regional designs more
intriguing and less disruptive. "This is a new way of using packaging as
media," explains Miller. "The consumer is looking for more variety and
expecting more from their brands. They want to have a dialogue with their

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favorite brands.”

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