The Marketing Mix

Product: Pepsi Max, Pepsi Light, Pepsi, 7UP, Caffeine Free Pepsi Light, Mountain Dew. Price: Pepsi is competitively priced to its major competitors, offering a better tasting product at a competitive price. Promotion: TV advertising, Online, radio, magazine, cinema and outdoor support. Other promotional items include: point of sale material, consumer premiums (e.g. clothing, caps, etc), sporting and concert sponsorships. Place: PAH/PI own the Pepsi brands. They sell the concentrate to CSA who manufactures and bottles the Pepsi products and distributes it to consumers. CSA distribute Pepsi via various channels e.g. major supermarket chains, convenience stores, smaller milk bars, restaurants and fast food outlets (e.g. KFC, Pizza Hut, Oporto). Service the right pack size at the right price, in the right place at the right time.

Marketing
Successful marketing plans developed globally can be adopted in Australia provided it is consistent with product positioning and is suitable for the Australian market. A great deal of campaigns are now generated locally in Australia. Indeed, the term 'think globally, act locally' highlights Pepsi's marketing mission. Pepsi is able to identify market opportunities and implement effective programs to leverage these opportunities - both locally and globally - there in ensuring consumer needs are always satisfied. 'Given that 50% of cola drinkers do not actually have a brand preference and are cola brand switchers, there is an enormous opportunity out there for the Pepsi brands to continue to increase our market share says Paul Hyde, International Brand Manager, PepsiCo Beverages Australasia. 'Every manoeuvre we make will be a clearly and cleverly considered challenge which respects the might of our major competitor and recognises that all our activities need to be 'best of' category efforts which communicate directly and succinctly to our key target audiences".

Pepsi Today
PepsiCo Inc. is among the most successful consumer product companies in the world with over 155,000 employees. Some of PepsiCo's brand names are nearly 100 years old but the corporation remains relatively young. PepsiCo Inc. was founded in 1965 through

the merger of Pepsi-Cola Company and Frito-Lay Inc. PepsiCo divisions operate in two major domestic and international businesses: beverages and snack foods. Through our divisions PepsiCo has achieved a leadership position in each of these business segments: we are world leaders in beverage bottling and we are the world's largest producers of snack chips. PepsiCo's brand names are some of the best known and most respected in the world and our restaurants are named as favourites by millions of people. PepsiCo has achieved a continuing record of growth. This record is based on high standards of performance, distinctive competitive strategies which are superbly executed, the personal and professional integrity of our people, business practices and products. In 2006, PepsiCo overtook The Coca-Cola Company in terms of market capitalization, a significant victory and milestone for Pepsi. Our mission is to be the fastest growing food and beverage company and we are guided by the PepsiCo guiding principles which apply to all our actions and activities. PepsiCo's beverage business consists of Pepsi-Cola North America and PepsiCo International. Pepsi assumes responsibility for supplying the essential ingredients of a product and it assures the bottler of exclusive right of sale within their specified geographical franchise area. It works with supplier firms to assure the availability of quality packaging, merchandising, and other related equipment made to standard specifications. It provides advertising campaigns and media support. It creates suitable promotional campaigns and marketing strategies. It offers aid in personnel training for sales and production staff. It makes available quality control facilities and technicians. It develops a national publicity effort and offers aid in formulating local level community relations projects. And, in addition to performing these functions, Pepsi offers service through a large field force, including specialists in a number of technical and marketing skills. The bottler has reciprocal obligations in connection with their franchise right. They agree to only use approved advertising and distribute a finished product of unvarying high quality, to use merchandising materials, and to market the product vigorously.

The Segment :2 The Segment Milk-Based Drinks Fruit Juices and Nectars Carbonated Soft Drinks Dominant Players :3 Dominant Players Market Characteristics :4 Market Characteristics Extremely competitive, market dominated by Pepsico and Coke The total value of sales in this segment in the year 2006 were Rs 7000 crore The growth rate of the consumption 22% p.a. Critical Success Factors :5 Critical Success Factors Brand strength Distribution network Bottling plants owned/efficient bottling Advertising expenditure Positioning, perceived value of product Visibility at retail locations

Pepsis Marketing Mix :6 Pepsis Marketing Mix Target segment population in the age group 1535 years Positioned as a cool drink for the youth and the Gen Next 4Ps :7 4Ps Place Introduction in A+ cities such as Chennai, Mumbai, Delhi and move to the rest Pepsi started in Chennai and Coke in Mumbai Price Initial penetration strategy Prices move in tandem with oligopolistic nature of business Slide 8:8 Product Product differentiation in terms of shape, bottles and cans, colours and logos. Ultimately, difference in perception created Promotions Film stars and cricketers Sponsoring cricket tournaments Lifestyle products 4Ps