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Profile…

Pepsi is a soft drink produced and manufactured by PepsiCo. It is sold in many places such as retail stores, restaurants, schools, cinemas and from vending machines. The drink was first made in the 1890s by pharmacist Caleb Bradham in New Bern, North Carolina. The brand was trademarked on June 16, 1903. There have been many Pepsi variants produced over the years since 1898.

PepsiCo brands are available in nearly 200 countries and territories. Many of PepsiCo's brand names are over 100-years-old, but the corporation is relatively young. PepsiCo was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay. Tropicana was acquired in 1998 and PepsiCo merged with The Quaker Oats Company, including Gatorade, in 2001.

PepsiCo (symbol: PEP) shares are traded principally on the New York Stock Exchange in the United States. The company is also listed on the Amsterdam, Chicago, Swiss and Tokyo stock exchanges. PepsiCo has consistently paid cash dividends since the corporation was founded.

PepsiCo World Headquarters is located in Purchase, New York, approximately 45 minutes from New York City.

Cont…

Revenues in 2007 is more than $39 billion.

37 bottling plants in India, of which 16 are company owned and 21 are franchisee owned.

PepsiCo’s Frito Lay snack division has 3 state of the art plants.

It has more than 185,000 employees across the world.

In India, PepsiCo provides direct employment to 4,000 people and indirect employment to 60,000 people including suppliers and distributors.

CEO : Ms. Indra K Nooyi

India Headquarters : Gurgaon.

Brand Image of Pepsi

Pepsi is a brand that every youngster relates to.

But this definitely doesn’t mean that other age groups are not it’s user’s.

Thus Pepsi’s brand image is it’s hip, cool, lively and refreshing attitude.

Advertising Strategy of Pepsi

Pepsi’s 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 audience’s interests and nostalgia.

The advertising strategy includes cool, hip promos to attract more of the target audience.

The advertising is mostly creative and has different elements like music and sports other than bollywood.

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..

Advertising History

Pepsi has continuously focused on the current teen generation.

How Pepsi has used humor, music, sex appeal in advertising.

Ad expenditures for 2001 is $ 1,800,000,000

Slogans

1939 - “Twice as Much for a Nickel” 1950 - “More Bounce to the Ounce” 1958 - “Be Sociable, Have a Pepsi” 1961 - “Now It’s Pepsi for Those Who Think Young” 1963 - “Come Alive, You’re in the Pepsi Generation” 1967 - “(Taste that beats the others cold) Pepsi Pours It On” 1969 - “You’ve Got a Lot to Live, Pepsi’s Got a Lot to Give” 1984 - “Pepsi. The Choice of a New Generation” 1985 - “New Generation” advertising continues 1992 - “Gotta Have It” 1993 - “Be Young, Have Fun, Drink Pepsi” 1997 - “Generation Next” 2000 - “Joy of Cola”

International brands….

North American brands…

Generation Y- Market Influence

Huge market – 80 million people

Spending power – 600 million annually

Many Geb Yers do household grocery shopping

90% parents say kids influence what they buy

Many work and have their own money to spend

They have proven to be brand loyal

Advertising campaigns

Michael Jackson

Michael received the biggest sponsorship from the company in 1993.

In 1993 Pepsi had a “Search for Michael Jackson” campaign.

Used musical and sex appeal.

Jeff Gordon

Made a commercial with Hallie Eisenberg

Sells many Pepsi collectable merchandise.

Drove the Pepsi car in races

Hallie Eisenberg

First appeared in a Pepsi commercial in 1998 at age 5

Introduced the “Joy of Cola” campaign. Starred in commercials with Faith Hill,

KISS, and Ken Griffey Jr. Her commercials used humor.

Spice Girls

Promotional single “Move over” available only through Pepsi.

Used musical and sex appeal.

As international stars they affected many countries

Issues

Hard to differentiate product in terms of taste as product variety is very limited within cola based beverages.

Coca-cola has such a strong base of loyal customers, who identify with the cola brand.

Consumer tastes are changing, away from carbonated drinks towards functional soft drinks. (Mintel, et al. 2009)

Pepsi’s Successes and Failures in Brazil and Germany

PesiCo has been operating in Brazil since 1953 “Pepsi’s heavy new investment in Brazil, which actually started early this

year, is funneled through a joint venture with Baesa, a bottler based in Buenos Aires that operates in Argentina, Chile, Costa Rica and Puerto Rico.”

PepsiCo in Germany made a smarter move by acquiring Punica, Germany’s premiere juice provider.

PepsiCo is one of the world’s largest manufacturer, seller and distributor of beverages

Pepsi has very limited brands in Germany. Their struggles in Germany include Coca-cola and a rash of suicidal

commercials for Pepsi Max that depicts a single lonely calorie committing suicide.

Marketing Products and Services

Taste testing

Television, Billboard and Print Media

Interactive/Web-based marketing

New Product Development

Produce a range of ‘healthy’ alternatives under the brand name ‘Pepsi Fresh’.

Our suggestion would be a range of Vitamin enrinched waters under the name ‘Pepsi Fresh’

Conclusion

It can be seen then that differences do exist between Coca-Cola and Pepsi Cola.

This can be seen in the marketing variables which are the basis for segmentation such as age and geographic variables.

In a competitive market, both companies must identify and target different market segments in order to remain at the cutting edge.

Differences between the companies are evident with respect to product, pricing, place and promotion.

Coca-cola relies heavily on value: quality is more than something we see or taste. (http://www.coca-cola.com).

Pepsi, on the other hand, relies on its success resulting from superior products and high standards of performance (http://www.pepsico.com).