IMC- Pepsi

GROUP 3
FT151022
FT151049
FT151092
FT151099
FT153071
FT153091
FT153028
FT152095

VARUN RAMACHANDRAN
ABHISHEK ANAND
DHIRENDRA KUMAR SINHA
SHRADDHA DADHICH
ARCHIT RAJ
SHUBHANK GOYAL
V VENKATA PHANI
SHISHIR KUMAR

PepsiCo
PepsiCo

inc. is an American multinational food and beverage

corporation headquartered in Purchase, New York
It is the 2nd largest manufacturer of soft drinks in the world.
Owns other brands such as Quaker Oats, Gatorade, Frito-Lay,
Tropicana, Copella, Mountain Dew, Miranda, 7-Up etc.
PepsiCo was founded in 1965 through the merger of Pepsi-Cola
and Frito-Lay. Tropicana was acquired and PepsiCo merged with
the Quaker Oats Company, including Gatorade.
PepsiCo bought restaurant chains such as Pizza Hut, Taco Bell, and
Kentucky Fried Chicken which was later changed to KFC, but in
1997 it spun off its restaurant business into a separate company,
Tricon Global Restaurants.

Brand Image of PEPSI

Pepsi

is a brand that every youngster relates

to.
But

this definitely doesnt mean that other age

groups are not its users.

Thus

Pepsis brand image is its cool, lively and

refreshing attitude.

Pepsi Advertising History

When introducing Pepsi-Cola, once known as Brads Drink, as their first

product back in 1898 Exhilarating, invigorating, Aids Digestion, was
the original slogan advertised for the upcoming beverage. By 1910,
franchises were spreading in twenty four states, selling over 100,000
gallons of syrup per every year. Caleb Bradham, the creator of Pepsi,
was advertising Pepsi through newspapers since he had renamed it

Pepsi-Cola.

Advertising Strategy of Pepsi

Pepsis

target audience are mostly teens and young adults and their
advertising reflects this in every possible way.

The

company changes its advertising strategy and image to reflect the

target's interests.

Pepsi

makes sure that the advertisements reflect to the target audiences

interests and nostalgia.

The

advertising strategy includes cool, hip promos to attract more of the

target audience.

Pepsi.com

also plays an important role in advertising and attracts target

audience by giving access to options like downloads, gaming, music mixing
applications etc

Continution

is spending 1.1 billion / 1.3

billion dollars in advertising

Pepsico
Pepsis

current CEO is Indra Noyi

Types Of Advertising
There

are several types of advertisements that is used

by Pepsi that help expose the product out to the public.
A few examples are

Print advertisement,

Outdoor advertisement,

Broadcast advertisement,

Print Advertisements
Print

Advertisements are ads that are

printed by companies and published in
newspapers, magazines, brochures, and
flyers.

Outdoor Advertising

Outdoor advertisements are ads on:

Billboards

Kiosks on electric poles

Bus Shelters

Vehicular Display

Wall Posters

Banners

Landscape and street furniture

Broadcast Advertisement

Broadcast advertising is radio, television, and Internet

advertising.

PEPSI - PAKISTAN

No.1 soft drink in Pakistan.

1971 - First plant in Pakistan, in Multan.

Market share of more than 60%

Official sponsors of Pakistan cricket team

TPR(Trade Price Reduction) is a promotional strategy of Pepsi on Ramzan and

Eid.

SWOT ANALYSIS

PROMOTIONS

Advertising

Incentives to sales persons

Incentives to shopkeepers

Publicity at Pepsi outlets

Rapport with Key Account Managers

Pepsi in Pakistan

Pepsi is Pakistani and They're Proud of It!

Promoting Pakistani Girls Can Do Attitude

They Have Afridi, Others Don't

Pepsi Motto = More Fun, Less Drama

Promoting budding music talent

Generation Next

Pepsi Promotes Pakistan Cricket Team

Pakistani Girls Can Do

Attitude

GEN NEXT

Dil Dil Pakistan

Good Food, Good MusicandGood Cricket.

Celebrating cricket

Signature tagline Dil Maange Abhi

Life size cricket bats supporting the campaign

Social media hashtags: #pepsicricket and #dildilPakistan

Campaign promotion are: Billboards, Print, TVC and Outdoor

PEPSI - USA

A youth Centric drink, associated will all that is

fashionable
and in with the society.
A drink for the smart innovative youngster who is laid and cool,

and can turn the trick situation to his or her own advantage.

A drink associated with adventure, rough and tough

figure; a
winner , a go-getter.

MARKETING STRATEGY

PepsiCo also includes the quick fast food restaurants business in the
synergy mix. Through its three leading fast food restaurants, Pizza
Hut, KFC and Taco bell, PepsiCo can distribute its beverages
through a captive customer market that would entail of their
beverages through fountain drinks.

PepsiCo employs an impressive synergy plan that attempts to

consolidate all of its businesses. From its practice of transferring its
best managers to its many different companies to its Power of
One Strategy.

In 1975, Pepsi introduced the Pepsi Challenge marketing

campaign where PepsiCo set up a blind tasting between Pepsi-Cola
and rival Coca-Cola. During these blind taste tests the majority of
participants picked Pepsi as the better tasting of the two soft drinks.

PRINT ADS

PRINT ADS

PRINT ADS

PEPSI SUPER BOWL

ADVERTISEMENT

Pepsi is so hyped up for Super Bowl XLIX and their halftime show
extravaganza that theyre asking people all across America to
join in on the action with the Hype Your Hometown contest.

1960

SUPER BOWL AD

POLITICAL FACTORS

PepsiCo is non alcoholic beverage and has to follow regulated by FDA with
consistency.

PepsiCos competitors use competitive pricing strategy and Pepsi has to always
keep this in mind.

It deals in different markets and every market has its own policies and
procedures that are either stringent or either relaxed. Specially cross border
situations are very different and Pepsi has to adapt to these changes accordingly.

PepsiCo has to also deal with governments focus on stricter water pollution
norms and land acquisition for new factories in different countries.

ECONOMIC FACTORS

Usually whenever there is an economic downturn faced by the economy,

companies sales are badly affected and they have to restructure their
strategies.

The economic in 2008 was in Pepsis favor. It resulted in increased sales of

its beverages as people were jobless and were sitting at home, spending
more time with family and friends.

Availability of labor is another very important economic factor .In some

countries the labor is quite expensive and if its cheap then sometimes
labor is not well trained.

The economic impacts of such movements are serious because these

affect the growth.

SOCIAL FACTORS

Changes in consumer attitudes towards carbonated drinks

U.S. Soda maker sales in that region slumped 69% in the first quarter and
were down 55% in the second quarter of 2014 from last years levels.

Increasing popularity of healthy lifestyle

PepsiCo revamped its product portfolio and introduced the G series,
comprising of Gatorade Prime, Perform and Recover.
PepsiCo hasannouncedthe launch of Pepsi made with real sugar in the U.S.
in June this year.

Increasing consciousness about green packaging amongst consumers

TECHNOLOGICAL FACTORS

Pepsi Cola always have young generation in mind, praising youth and
coolness. It is known for its campaigns with music and sports celebrities.

On another hand, Coca-Cola advertising has historically focused on

wholesomeness and nostalgia for childhood. Coca-Cola advertising is often
characterized as family-friendly, and often relies on cute characters.
They also target diverse audience, taking into consideration geographical
and cultural aspects.

For the last 4 years Pepsi has paid close attention to augmented reality
technology as one of the most effective in terms of ROI. Augmented Reality
allows everyday marketing materials (print, digital, multimedia, and even
GPS locations) to be infused with highly interactive multimedia experiences
like videos, 3D models of products and characters, and even infused with
extremely detailed analytics and content targeting.

TECHNOLOGICAL FACTORS
(CONTD..)

Example LiveForNow advertisement campaign using augmented reality.

Why so much emphasis on augmented reality and other innovative advertisement

mediums?

Study, conducted by Hidden Ltd. showed, that the percentage of people buying a
product after viewing the augmented reality experience is around 74% against
45% of those, who bought a product after reading 2D printed display
advertisement.

ENVIRONMENTAL FACTORS

The Pepsi Refresh Project:

The Pepsi Refresh Project (PRP) was a 2010 initiative by PepsiCo to award $20 million in grants
to individuals, businesses and non-profits that promote a new idea that has a positive impact
on their community, state, or the nation. The project is completely separate from the Pepsi
Corporate Foundation and uses money budgeted for marketing.
Rules:
The PRP began on January 13, 2010 when the website, refresheverything.com began
accepting ideas online. The rules of the project state that the first 1,000 ideas proposed online
each month will be considered for a share of $1.3 million available [3] It took less than a week
for one thousand "January" ideas to be submitted and the site stopped accepting ideas.
Pepsi and NPL:
Prior to Super Bowl XLIV, the National Football League website hosted a one-week Pepsi
Refresh Project contest for ideas suggested by NFL players. Drew Brees was the winner of the
"Super Bowl Refresh Project" with more than half a million votes. A $100,000 grant was given
to the Hope Lodge in New Orleans for no-cost housing of cancer patients and families.
Advertisement: https://www.youtube.com/watch?v=srY7Wkl2IbI

LEGAL FACTORS:

Pepsi has always been in a legal tussle with its archrival Coca Cola. Throughout their
existence, Pepsi and Coca Cola had been attacking each other through funny
advertisements and law suits.

The latest bone of contention : Gatorade v/s Powerade

Coca-Cola claims its sports drink is superior because Powerade ION4 contains calcium and
magnesium, according to PepsiCo. PepsiCo said in an e-mailed statement that the amount of
the minerals in Powerade ION4 is less than 0.5 percent of their recommended daily
allowances.
"More calcium and magnesium are found in most tap water," PepsiCo said.

Deceptive Advertisement : Pepsi's suit centers on a Powerade commercial with two Amish
farmers racing horse-drawn carts. The farmer with 10 bales of hay on his cart easily defeats
his opponent who's hauling 50 bales. The ad's narrator announces, "Ten is less than fifty," in
reference to Powerade Option's 10-calorie serving versus Gatorade's 50 calories.

However, Gatorade feels the ad implies Powerade Option not only has less calories but can
also provide more energy, a claim Coke cannot substantiate. While Powerade Option does
contain less calories, the drink cannot refuel athletes in the same manner as Gatorade.

VIDEOS

https://www.youtube.com/watch?v=-rZQ2XWSDdw

https://www.youtube.com/watch?v=Go9rf9GmYpM