Professional Documents
Culture Documents
Advertising Sales and Promotion
Advertising Sales and Promotion
Project on
Advertising and Sales Strategies of Pepsi
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 .
Advertising
Sales promotion
Public relation
Direct marketing
Personal selling
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.
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
PSYCHOGRAPIC
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
Conclusion
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.