Rural marketing of Pepsi

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AKSHAY SHETTY 95 SHAHEZAD NATHANI SWATI SANAP 86 DIMPLE PANSANIYA POONAM NAGAONKAR KEVIN VORA 113 75 68 70

IntroDUCTION:
1893, Caleb Bradham, a young pharmacist from New Bern, North Carolina, begins experimenting with many different soft drink concoctions. Like many pharmacists at the turn of the century he had a soda fountain in his drugstore, where he served his customers refreshing drinks, that he created himself. His most popular beverage was something he called "Brad's drink" made of carbonated water, sugar, vanilla, rare oils, pepsin and cola nuts.

One of Caleb's formulations, known as "Brad's drink", created in the summer of 1893, was later renamed Pepsi Cola after the pepsin and cola nuts used in the recipe. In 1898, Caleb Bradham wisely bought the trade name "Pep Cola" for $100 from a competitor from Newark, New Jersey that had gone broke. The new name was trademarked on June 16th, 1903. Bradham's neighbor, an artist designed the first Pepsi logo and ninety-seven shares of stock for Bradham's new company were issued.

Pepsi-Cola of Madison distributes Pepsi products to the greater Madison area. The Pepsi-Cola Company was founded in New Bern, North Carolina in 1898.

The local Pepsi-Cola of Madison franchise was owned by Fauerbach Brewery in the 1950s, when Ray Malquist purchased it and grew the Pepsi-Cola business to its position as the number one soft drink company in the area.

It is a privately held company that has approximately 200 employees at the Windsor location and distributes about 130 different Pepsi-cola products to the greater Madison area. Soft drinks giants Coca-Cola and Pepsi have signed on thousands of new retailers in a drive into rural India that has pushed up sales steeply.Coca-Cola has made its beverages available in 40,000 additional villages in the last three years .As a result, the rural areas now contribute 35 per cent of the company's sales compared with 25 per cent in 2000.

THE CHANGE OF LOGOS AND SLOGANS

91950: "Twice as Much for a Nickel" 0: "More Bounce to the Ounce" 01957: "Any Weather is Pepsi Weather" 71958: "Say Pepsi, Please" 81961: "Be Sociable, Have a Pepsi" 1-1963: "Now It's Pepsi for Those Who Think Young" 31967: "Come Alive, You're in the Pepsi Generation" 71969: "(Taste that beats the others cold) Pepsi Pours It On". 91975: "You've Got a Lot to Live, and Pepsi's Got a Lot to Give" 51977: "Have a Pepsi Day" 71980: "Join the Pepsi People 01981: "Catch That Pepsi Spirit" [] 11983: "Pepsi's got your taste for life" 3: "It's cheaper than Coke 31984: "Pepsi Now! Take the Challenge!"

19841991: "Pepsi. The Choice of a New Generation" 19861987: "We've Got The Taste" 19871990: "Pepsi's Cool" 19901991: "You got the right one Baby UH HUH" 19901991: "Yehi hai right choice Baby UH HUH" 19911992: "Gotta Have It"/"Chill Out" 19921993: "Be Young, Have Fun, Drink Pepsi" 19931994: "Right Now" 19941995: "Double Dutch Bus" 1995: "Nothing Else is a Pepsi" 19951996: "Drink Pepsi. Get Stuff."

19961997: "Pepsi:There's nothing official about it" 19981999: "It's the cola" (100th anniversary commercial) 19992000: "For Those Who Think Young"/"The Joy of Pepsi-Cola" ( 1999-2006: "Yeh dil maange more" 2003: "It's the Cola"/"Dare for More" 20052006: "An ice cold Pepsi. It's better than sex!" 20062007: "Why You Doggin' Me"/"Taste the one that's forever young" 20072008: "More Happy"/"Taste the once that's forever young" 2008: "Pepsi Stuff" Super Bowl Commercial

logo

History

Pepsi invented by Caleb Bradham in 1893 has one of the most interesting histories of any product on the market. From it's humble beginnings the people of Pepsi make the story what it is - including its inventor, customers, competition & many including some of the biggest names in entertainment history. There have been good times and bad times - plus lots

1920 Pepsi appeals to consumers with "Drink Pepsi Cola. It will satisfy you."

1923
Pepsi-Cola Company is declared bankrupt and its assets are sold to a North Carolina concern, Craven Holding Corporation, for $30,000. Roy C. Megargel, a Wall Street broker, buys the Pepsi trademark, business and goodwill from Craven Holding Corporation for $35,000, forming the Pepsi-Cola Corporation.

1947 International profits reach $6,769,000. Pepsi moves into the Philippines and Middle East. 1964 Americans become more weightconscious, and a new strategy based on Pepsi's lower caloric content is implemented with A new product, Diet Pepsi, is introduced into Pepsi-Cola advertising.

1993
"Be young, have fun, drink Pepsi" advertising starring basketball superstar Shaquille O'Neal is rated as best in U.S.

2001
Pop superstar Britney Spears appears in her first Pepsi commercial during the 2001 Academy Awards. The highenergy spot also runs online, where more than 2 million fans click their way to Britney's own version of "The Joy of Pepsi."

Today
Pepsi is one of hundreds of products manufactured by the PepsiCo corporation. PepsiCo is a world leader in convenient foods and beverages, with revenues of about $27 billion and over 143,000 employees.

Products

Rural marketing OF PEPSI: Rural marketing is promotion of a company's products in the rural market by using strategies which differs from that of urban market, the rural market is more price sensitive but it has preference for quality. Pepsi rural marketing:

Pepsi company India has entered into rural market by having joint programme with the Punjab agriculture university in ludhiana and Punjab agro industries corporation in chandigarh. The programme focuses on evolving agricultural practices to help Punjab farmers produce crops that would make Indian products internationally competitive. To cultivate a range of sweet oranges for its Tropicana range. Apart from that, they have given advertisement to attract the rural people with the celebrity of Amitabh bachchan and star cricketer sachin tendulkar. For rural market, it will be ideal to think of strategies from the marketing mix point of view, main strategies are related to product, price, place and promotion which are described as follows..

Marketing Strategies 1.Product strategy:

For Pepsi Cola Ltd, marketing opportunity analysis is a continual and ongoing process. Pepsi have used the new- product strategy to realise their ambitions to both defend their current market position, and reinstate their position as a product innovator. Pepsi wishes to create a clear cola that is 100% natural, low in sodium, caffeine-free, and still maintains the flavour of its original cola. They will call it Pepsi Au Naturel. Pepsis hope is to usher in a new era, and to give them a clear-cut advantage over their rivals, Coca-Cola. By following closely the six steps of the new-product development process, the company could expect such benefits as: improved teamwork, less reworking, earlier detection of likely failure Generating New-Product Ideas. Screening and Evaluating Ideas. Business Analysis. Prototype Development. Market Tests. Commercialisation.

2.Pricing strategy
It was few years back when these companies come up with the concept of Chota Pepsi or Coke for that matter. They offered consumers 150 ml of soft-drink for Rs.5. It was well accepted by consumers who were use to drink 300 ml. At this point of time both 150 ml and 300 ml (for Rs. 9) were available in the market. Then after some time they increased the volume and price of small bottles to 200 ml and Rs. 7, though 300 ml was at same price. These companies discovered a new trend in consumers. They realized that still consumers prefer small bottles. This appeared as a great opportunity for them. Bingo!! The result of this we are seeing now. Finally, these companies are now selling same Chota Pepsi or Small Coke at the price of Bada i.e. Rs. 9. And we without realizing this have happily accepted this. And the price of pet jar i.e. 500 ml has just increased from Rs. 18 to Rs. 20, where as the prices of 1.5 liters and 2 liters have been decreasing or is mostly with some offer like free my can or something. Hats Off to the pricing strategy of the Cola Companies who have been successfully able to sell 66% of the product at the cost of 100% almost in a phased manner and making consumer habitual and unaware of the increased price.

3.Positioning:

The campaign positioning is done on the basis of user approach i.e a personality based approach where a users image or association rubs off on the brand image. The user could be a celebrity or an ordinary user. For this campaign Pepsi used the three most popular celebrities of the last year i.e Shahrukh Khan, Ranbir Kapoor, Deepika Padukone

Swot Analysis

Strength:
Pepsi has a broader product line and outstanding reputation. . Record revenues and increasing market share. Lack of capital constraints (availability of large free cash Flow). Great brands, strong distribution, innovative capabilities Number one maker of snacks, such as corn chips and potato chips PepsiCo sells three products through the same distribution channel For example, combining the production capabilities of Pepsi, Gatorade and Tropicana is a big opportunity to reduce costs, improve efficiency and smooth out the impact of seasonal fluctuations in demand for particular product.

Weakness:
Pepsi hard to inspire vision and direction for large global company. Not all PepsiCo products bear the company name PepsiCo is far away from leader Coca-cola in the international market - demand is highly elastic.

Opportunity:
Food division should expand internationally Noncarbonated drinks are the fastest-growing part of the industry There are increasing trend toward healthy foods Focus on most important customer trend "Convenience".

Threats: Pepsi is blamed for pesticide residues in their products in one of their most promising emerging market e.g in India Over 50 percent of the company's sales come from Frito-Lay; this is a threat if the market takes a downturn

PepsiCo now competes with Cadbury Schweppes, Coca-Cola, and Kraft foods (because of broader product line) which are well-run and financially sound competitors.

Thank you