Advertising Sales and Promotion

Project on
Advertising and Sales Strategies of Pepsi

Submitted to: Jyotsna Mukherjee Made by:

1) Trisha Badlani
2) Yamija Sajwan
 Introduction

“Advertising is Salesmanship Mass Produced”

Advertising is a common means used by many organizations or companies all over
the world to make their products or services well known and are easier to be sold.
Every year many hundreds of advertisements are published through out the mass
media such as on billboards, on sign boards, on radios, in newspapers, on
television and internet, which are the main instruments, that we use and see
everyday. Although, there are not many successful products and not everyone
remembers them but PEPSI advertisings are different because most of their
customers are repeat consumers. Therefore, this report will discuss the advertising
strategies of PEPSI and how it stands as one of the leaders of the cola beverage
industry. For several years the main consumers of PEPSI were teenagers and
young adults. Nowadays Pepsi wants to gain more market share so it is extending
its market by producing many range of product to suite every groups of consumer.

Pepsi is the one of leader of beverage industry so it has to work more to gain more
market share and keep its position in the top of cola industry .As we know the main
customer target is teenagers and young adults and they are very much interested in
sports and music and therefore Pepsi endorses mainly sports and music celebrities.
In fact, the company is recognized worldwide as a leader in advertising, marketing,
sales and promotional initiatives.
Integrated Marketing Communication Tools Used By Pepsi
As we know integrated market communication is the integration of all the
marketing tools, approaches and resources within a company which maximizes
impact on consumer mind and hence results in maximum profit at minimum cost .

Following are the five basic tools of integrated marketing communication

 Advertising
 Sales promotion
 Public relation
 Direct marketing
 Personal selling

1) Advertising : Advertising is the major strength of PepsiCo it has a luxury to

spent 225milliondollars in advertising each year this enormous advertising
budget allows Pepsi to reinforce their products with reminder advertising
and promotions. This also allows Pepsi to introduce new products and very
quickly make the consumer aware of their new products
2) Sales promotion: Pepsi uses sales promotion through organizing various
contests, demonstrations, samples, coupons, pamphlets, displays. This helps
Pepsi to accelerate short term sales by building brand awareness and
encouraging repeat buying.
3) Public relations: under this tool Pepsi promotes itself through public
appearances, news/press releases or event sponsorships, to build trust and
goodwill by presenting the product, company or person in a positive light.
4) Direct marketing : under this tool Pepsi utilizes internet services,
catalogues, encourage direct responses to radio and TV , n order to reach
targeted audiences to increase sales and test new products and alternate
marketing tactics. Now a days Pepsi is widely used in social networking
sites such as orkut and face book etc as its target audience is largely attached
to these sites.
5) Personal selling: it is initiated by setting sales appointments and meetings,
home parties, making presentations and any type of one to one
 communication to reach their customers and strengthen their relationship
with their clients.

Consumers
PepsiCo is committed to marketing its products to all groups, treating all
customers with respect, sensitivity and fairness, while providing some of the
greatest products on earth. Early in its history -- as far back as the 1940s -- Pepsi-
Cola recognized the importance of diversity. Pepsi pioneered targeted marketing
and national lifestyle advertising featuring minorities. We developed education
and sports programs spotlighting minorities. We partnered with many groups to
create programs that contribute to minority communities. We sponsored major
music tours by entertainers such as Tina Turner. We support minority media and
interests. Over the years, our success has been recognized with numerous awards.
Most importantly, our products are purchased and enjoyed by all groups of
consumers.

Consumer Solution

PepsiCo offers a wide variety of products that ranges from Energy drinks, Tea,
Water, to carbonated drinks. Each variety aims to meet the needs of different
consumers of different demographics. For example, Energy drinks such as
Gatorade are catered for athletes whereas Tea such as Lipton Iced Tea aims to
provide quality taste for regular consumers. Therefore PepsiCo is able to reach a
large group of customers from different demographics because of its product
variation.

Customer Cost

Despite the fact that PepsiCo frequently lowers its price and eventually raises its
price again, buyers have not been affected by this pricing strategy. On top of that,
Pepsi has always been very flexible and reasonable with its pricing strategy.
Depending on the product, prices are ranged from moderately low to hig
Advertising Objectives
Setting of advertising objective is a very important step in advertising planning of
any company .following is the advertising objectives building brand image.

1) Building brand image: As we know PepsiCo invests a lot in creating its

strong global brand and corporate image a strong brand creates a brand
equity .PepsiCo has been effective in creating a top of mind brand image in
the mind set of its customers .currently Pepsi has increased importing and
exporting activities This makes Pepsi a memorable and accepted global
brand as it focuses on the three vital factors for success i.e. brand awareness,
brand image and brand equity.
2) Providing information: PepsiCo uses its advertising strategies to provide
information to both customers and business buyers this information includes
letting the customers know the retailer store hours, business locations and
also detail product specification. PepsiCo works hard on providing
information whenever and wherever required as information is one
component of persuasion, another objective of various advertising programs.

3) Persuasion: Pepsi has been very effective in persuading its consumers to

prefer its brand to others .persuasion techniques used by PepsiCo are in
fields of broadcast media such as television and radio rather than in print
advertising.
4) Encouraging action: PepsiCo has set motivational goals for its advertising
programs. Its television commercial encourage viewers to take action .
Its ads like “yeh hai youngistan mere jaan “and generation next “has been
very effective in encouraging action and hence increasing its sales.
Creative Aspect

PepsiCo in short span of its operation in India has found a place in the hearts and
minds Indian consumers through its creativity .of the advertisement tag line “ yehi
hai right choice baby ahha “ was the first hinglish slogan ever used in the Indian
market . This slogan proved to be the best suited one for Pepsi and it was a megahit
at that moment of time. Pepsi knows that Indians have a passion for cricket and
hence it has used few of its Indian cricketers very innovatively in its ads.

Media Strategies
Pepsi Cola from its discovery in 1893 by Caleb Bradham, a young pharmacist from
North Carolina to the multi- million corporations it is today. It examines its
advertising techniques over the years beginning with the very first advertisements
and moving on to the different campaigns used through the 70s, 80s, 90s and
today, evaluating different marketing campaigns, their effectiveness and how they
impacted the wider marketplace. It looks at how Pepsi's branding strategy includes
maintaining the brand equity and upholding the positive associations that are often
linked with the Pepsi brand name such as youth, love, joy, and excitement and how
Pepsi constantly tries to reinvent itself and invent new products and ideas.

"Pepsi uses concepts, words, pictures, and visuals to complete the total concept for
their advertising. Their logo is red, white, and blue portraying patriotism and an
American classic taste. They also use the color blue frequently for their packaging,
which is a refreshing color. The strong colors of red and blue are good at attracting
a lot of attention. All of their products and advertising have the five basic design
principles of unity, harmony, sequence, emphasis, and contrast. Their products'
design is in a stately orderly format that commands authority and also emphasizes
the products' refreshing, and cooling qualities."
Social and Ethical Issues
Ethical issues concerning Pepsi have common interest in generating revenues
through distribution of their products through vending machines on primary and
high school campuses across the country. Unfortunately, Pepsi has been ineffective
in responding to outspoken critics such as the Center for Science in the Public
Interest (CSPI). The CSPI is leading a campaign of public health experts to raise
awareness of the adverse health consequences of increased soda consumption.
However, Pepsi and Coke would benefit through a concerted marketing effort to
encourage distribution of soft drinks in schools. For example, no direct connection
has been made between soda consumption and increased obesity.17 Moreover,
school officials across the country view soda vending machine contracts as a boon
to ailing school district budgets. One official in the Washington D.C. school
district calls its contract with Coca-Cola a “godsend,” because it provides money
for proms, bus tokens for needy students, and extra school books.18 Finally, Pepsi
companies distribute more than carbonated beverages through vending machines –
they also distribute bottled water, juices, and sports drinks. Pepsi and Coke would
stand to benefit from shifting their focus from competitive actions to obtain
exclusive school district contracts to creating a unified marketing approach that
educates consumers about their community involvement and eliminates negative.
 Segmentation Target and Positioning
Market segmentation
Segmentation variables Data
DEMOGRAPHIC
Age 14- 30 plus
Gender Male, female
Family size 1 – 2,3-4,5 plus

Family life cycle Married ,unmarried

PSYCHOGRAPIC

Social class Middle and upper class

Life style Actualizes , fulfilled ,believers ,
achievers, strivers, experience
makers and strugglers
BEHAVIOURAL
Occasions Parties , birthdays , sports and
regular occasions
Benefits Quality , taste
User status First time user ,
Loyalty status Strong
Readiness stage Aware , interested
Market Targeting Pepsi customers are mostly Teenagers and Young Adults
between the ages of 14 to 30. It also targets at Schools, Colleges, Universities,
Homes, Restaurants, Hotels, and Stores.

Market Positioning PepsiCo plans to further create positions that will give
products the greatest advantage in their target markets. Pepsi has been positioned
based on the process of positioning by direct comparison and have positioned their
products to benefit their target market
 Slogans and logos

1898 Brad's Drink

1915 For All Thirsts - Pepsi: Cola

1933 It's the Best Cola Drink

1961 Now It's Pepsi for Those Who Think Young

1963 Come Alive!  You're in the Pepsi Generation

  

1984 The Choice of a New Generation

1989 A Generation Ahead

1993 Be Young, Have Fun, Drink Pepsi

1997 Generation Next

2006 Pepsi.  It's the Cola

Conclusion

PepsiCo uses both national and international advertisements. Type of advertising

with respect to product lifecycle that Pepsi adopts is a reminder type the reason
behind this fact is that Pepsi is such a product that is at the maturity level currently,
so for such a product companies mostly go for reminder types of advertisement so
that they can penetrate more and more .before creating advertising message Pepsi
gives lots of time to the factor that the message must gain customer attention. This
is basically called clutter buster, means that only that

Advertisement will leave impact on customer mind that has some specialty or
uniqueness in it .for exp the Pepsi slogans “youngistan ka WOW”. Has gained
tremendous customer attention. Pepsi advertises its product mainly through
electronic media.

Pepsi frequently has rewards programs with codes or messages printed on the
bottom of the caps. These are the various advertising strategy used by Pepsi to
enhance their sales.