MARKETING PLAN

By:

Anastacio, John Cedrick

Gañalongo, Christine Joy

Mariquina, Nerichelle

Pangilinan, Remieanne

Sy, Jacob Grant

Verzosa, Arnel

Yumul, Tricia Laine

Adviser:

Prof. Ma. Nessy Angelica R. Garrata

 CHAPTER 1
EXECUTIVE SUMMARY
The Beverage Industry is a sector that handles the production of drinks which are mainly the ready
to drink beverages in the market. It is divided into two major categories: the alcoholic and non-alcoholic
items.

The alcoholic and non-alcoholic categories are subdivided into eight subgroups. The non-alcoholic
category includes soft drink syrup manufacture; soft drink and water bottling and canning; fruit juices
bottling, canning and boxing; the coffee industry and the tea industry. On the other hand, the alcoholic
beverage category includes distilled spirits, wine and brewing. The beverage industry, viewed as an
aggregate group, is considered to be highly fragmented. This can be easily noticed by the number of
manufacturers, methods of packaging, production processes and final products. However, the soft drink
industry is the exception to the rule, as it is quite concentrated.

The market size is described below:

Table 1. Competitive Market Share
Coca-Cola Pepsi RC Cola Cosmos (Sarsi) Others
Market Share 65.2% 19.8 9.5% 3.0% 2.5%
Market Size 53, 639, 000 16, 306, 000 7, 843, 000 2, 432, 000 2, 041, 000
(Market Size value are all in PHP millions)

The marketing objectives includes:

1. To increase sales of Pepsi-Cola Philippines to 12% by the end of 2017.

2. To increase sales of Pepsi-Cola Philippines from 853 million in 2016 to 900 million in 2017.

3. To increase net profit of Pepsi-Cola Philippines to 35% by the end of year 2017.

4. To achieve a market share increase of 25% by the end of 2017.

Mainly, teens belonging to Class C and D are the primary target market, consisting 100% (100/100)
of the respondents. They are students who want to quench their thirst and be freshened up by drinking
some refreshments. Since they are still non-workers, they look for a brand of refreshment which is
affordable and easy to find. These teens want to relieve stress from their daily school work, that's why
they are likely to have soft drinks to help replenish their selves. They usually consume these during
occasions such as birthdays, reunions, festivals and even just for snacks and usual meals.

The positioning statement is “To quench the thirst of active teens and young professionals,
Pepsi offers the best beverage that will give satisfaction and enjoyment to everyone. It provides you an
affordable price which can be bought everywhere. The best feeling when drinking Pepsi is when you
burp and all you can say is 'solved!'”

The tag line for the positioning statement is “Buo ang araw ko.”

Other strategies consist of market development, and intensive promotions.

 CHAPTER 2
EXTERNAL ANALYSIS
This chapter presents the analysis of the external environment of Pepsi Cola.

I. Industry Definition

The Beverage Industry is a sector that handles the production of drinks which are mainly the ready
to drink beverages in the market. It is divided into two major categories: the alcoholic and non-alcoholic
items.

The alcoholic and non-alcoholic categories are subdivided into eight subgroups. The non-alcoholic
category includes soft drink syrup manufacture; soft drink and water bottling and canning; fruit juices
bottling, canning and boxing; the coffee industry and the tea industry. On the other hand, the alcoholic
beverage category includes distilled spirits, wine and brewing. The beverage industry, viewed as an
aggregate group, is considered to be highly fragmented. This can be easily noticed by the number of
manufacturers, methods of packaging, production processes and final products. However, the soft drink
industry is the exception to the rule, as it is quite concentrated.

II. Industry Segmentation

Figure 1 shows the segmentation of the beverage industry. Beverage is a combination of the
various types of drinks which are categorized into the alcoholic beverage and the non-alcoholic beverage.
The alcoholic beverage category is subdivided into its general classes — beers, wines and distilled
beverages. On the other hand, the non-alcoholic beverage has its subdivisions which are milk, chocolate-
based beverages, soy-based beverages, fruit-flavored juice drinks, soft drinks (cola), coffee and tea, and
energy drinks.

The Soft Drinks subdivision is further divided into different varieties like Regular, Diet, Low-
Calorie, Mid-Calorie, Flavored, Caffeinated and Caffeine-free. The main topic of this marketing plan is the
Regular type of soft drinks.

The creation of soft drinks is linked with the development of fruit-flavored drinks. Since then,
various inventions and experiments were made to produce what we have now as soft drinks. It is a drink
which is made up of carbonated water, a sweetener, and a natural or artificial flavoring. What people
from the Philippines regard as soft drinks are the sodas which are the carbonated beverages. These are
often sold in bottles but now rarely in cans.

Soft drinks have a large variety of recipes that makes it appropriate for any situation. Some of the
large variety of soft drinks which are usually available are: regular, diet, low-calorie, mid-calorie, flavored,
caffeinated and caffeine-free. These varieties differ by the type of recipes they include.

1. Regular - These are the most commonly found type of soft drinks. These includes carbonated water,
flavoring and corny syrup or sugar as sweetener.

2. Diet - These are the calorie-free versions of regular soft drinks. These types of soft drinks use artificial
sweeteners such as aspartame, sucralose and stevia.
3. Low-Calorie - These are soft drinks which have low caloric value. They include zero natural sugar and
typically with zero or 1 calorie.

4. Mid-Calorie - These are regarded to be a type of soft drinks which are balanced because of their sugar
is removed but the calorie is not greatly reduced.

5. Flavored - These are carbonated water spiced up with specific flavors and a little sweetener.

6. Caffeinated - These are soft drinks which includes caffeine that makes it mildly addictive.

7. Caffeine-free - These are soft drinks which do not include any form of caffeine to avoid their positive
and negative effects for the drinkers.

BEERS

WINES

ALCOHOLIC DISTILLED BEVERAGE

BEVERAGE
MILK
BEVERAGE
CHOCOLATE-BASED BEVERAGE
INDUSTRY REGULAR
SOY-BASED BEVERAGE
NON-ALCOHOLIC DIET
BEVERAGE FRUIT-FLAVORED JUICE DRINKS
LOW-CALORIE
SOFT DRINKS (COLA)
MID-CALORIE
COFFEE AND TEA FLAVORED
CAFFEINATED
ENERGY DRINKS
CAFFEINE-FREE

Figure 1. Industry Segmentation

III. Industry Size and Growth

The table below shows that the major players are Coca-Cola with 65.2% which captured almost
of the market share. While the 35% remaining is the combined share of Pepsi-Cola with 19.8%, followed
by Cosmos(Sarsi) with 9.5%, ARC with 3% and other brands with 2.5%.

Table 2. Industry Size of Soft Drinks

BRAND GROSS + REVENUE % SHARE
Coca-Cola 53,639,000,000 65.2%
Pepsi-Cola 16,306,000,000 19.8%
Cosmos (Sarsi) 7,843,000,000 9.5%
ARC 2,432,000,000 3.0%
Others 2,041,000,000 2.5%
Total 82,261,000,000 100%
Source: Slide Share
 Furthermore, Table 3 shows that the sale of carbonated soft drinks in the year 2000 is 66B then
in the year 2001, it increased by 9.59%. In the year 2002, it also increased by 6.41% followed by 2003 with
4.88%, 2004 by 4.65%, 2005 by 2.27% and 2006 by 3%. However, it has been maintained in the year 2007.

Table 3. Sales of Carbonated Soft Drinks (in billion peso)

BRAND 2000 2001 2002 2003 2004 2005 2006 2007
Carbonated Soft drinks 66B 73B 78B 82B 86B 88B 91B 91B
TOTAL 66B 73B 78B 82B 86B 88B 91B 91B
GROWTH 9.59% 6.41% 4.88% 4.65% 2.27% 3% 0

IV. Environmental Scanning

The following are the data gathered by the researchers regarding some of the environmental
forces that may affect Pepsi Cola’s operations.

Table 4. Pepsi-Cola Environmental Scan

Political Factors Effect on the Industry Effect on the Brand
 FDA Laws: Importance in the quality Consider the content
Republic Act No. 7394. The Consumer Act of the and health content of the of the brand and
Philippines. It is the policy of the State to protect product. increase awareness
the interest of the consumer, promote general towards it that will
welfare and to establish standards of conduct for turn into high sales.
business and industry. The objectives of this Act
is all focused to the welfare, protection and rights
of all the consumer in the Philippines.
Source: http://www.officialgazette.gov.ph
 Taxation Requirements: Sales will increase. Sales will increase.
Republic Act No. 9504. Tax Exemption for
Minimum Wage Earners and Increased Tax
Exemptions.
Source: https://ciudadista.wordpress.com
Economic Factors Effect on the Industry Effect on the Brand
 Inflation Rate The ability to purchase Number of
The general level of prices for goods and products will decrease due consumers will vary.
services is rising and, consequently, to rise of level of prices.
the purchasing power of currency is falling.
Source: https://prezi.com
 Rapid change in currency exchange rate Economic stability Changes in financial
Source: http://freepestelanalysis.com position and its
units/branches in
other countries.
Socio-cultural Factors Effect on the Industry Effect on the Brand
 Higher health consciousness. Most consumers Consumers will mostly Consciousness with
between the ages of 40-55 are gradually more choose healthy beverages the content of the
worried with nourishment. As many are brand
growing older, they are more worried in
increasing their prolonged existence. This will
 keep having impact on the non-alcoholic
beverage industry by rise in demand for
healthier beverages
Source: http://panmore.com
 More discriminating attitudes about product Innovations upon the Opportunity to
quality product will be recognized enhance the
Source: http://panmore.com product/brand to be
able to maximize
profits
Technological Factors Effect on the Industry Effect on the Brand
 The usefulness of company marketing, Awareness on the product Profit will increase
advertising, promotional programs, and the and will create relationship
advent of social media. between the consumers
Source: http://www.essay.uk.com
 Innovative designs for packaging. Attract the consumers and Profit will increase
Source: http://www.packaginginnovation.com make them interested and will gain new
customers
Environmental Factors Effect on the Industry Effect on the Brand
 High focus on business sustainability Properly maintain ecological Correct and proper
Source: http://panmore.com balance strategies in building
company plants
 Seasons/Weather/Climate Change Flexibility on the plan and High sales will vary
Source: https://prezi.com strategy depending on the
season

CHAPTER 3
KEY SUCCESS FACTORS
The following key success factors emerged upon the analysis of the environment of Pepsi Cola:

1. Size Organization - It is when the company has been connected with a particular company that produces
a product that will serve as their strength on having a large number of purchasers in a particular
community. The main objective of this is to know how companies increase and has been developed
through having different branches in different community.

2. Brand Loyalty - This has been called to be the most common issue regarding a specific product, many
people especially a fan of a beverages only buy a particular product and personally as a person who loves
to drink a soft drink prefer to buy a coke that is good in quality as well as popular. And this is why we must
say that a brand really matters when it comes to advertising it. And we all know that it takes a lot of money
and effort to have a better image of a product, especially today that many soft drinks or beverages has
been developed. And it is very important to create a unique emotional relationship between the brand
and a customer.

3. Price - Today, people would rather spend too much money as long as the product or the goods are in
good quality. And this is one of the strength of the company who has known to be the most popular
product. But of course, it also depends on the state of a person who will buy the product. The company
will get the competitive advantage because the customer will for the prize that is affordable and at the
same time in good quality.

4. Global Expansion - This would really require a time, effort, and money so that they would able to have
a global expansion, global expansion would simply mean the planned expansion of a company’s business
activities into countries in several regions throughout the world. It also implies more than just making
investments in nations outside of the company’s home and the concept includes maintaining an actual
business presence in those countries, this will only achieve if the company has been known to its own
country.

5. Product Innovation - It was stated that “the only permanent thing is change” and this can be applied in
advertisements of a product, but this is not a totally changed to be made but an improvement that will
satisfy the need of the consumers, the company should come up with a unique kind of product that will
attract the consumer’s eyes, and because of this, it will also serve as a symbol of productivity of the
company.

6. Health Issue - This would probably be the most critical thing that a company or producers must know.
It is said to be the most key factor that affects the consumption of a product especially the food or
beverages. The company must know the risk factors and the things that would probably affect the health
of the consumers.

CHAPTER 4
INTERNAL ANALYSIS
The data gathered about the internal environment of Pepsi Cola are shown in this chapter.

I. Company Background

John Clarkin, a native of Minnesota, USA who came with the American forces at the close of World
War II, brought Pepsi-Cola to the Philippines. He became president and general manager of Pepsi-Cola
Bottling Company of the Philippine Islands Ltd. upon acquiring a franchise to bottle Pepsi in the Philippines
on October 16, 1946.

For one year, Pepsi was imported from the U.S. until the first bottling plant was put up in Quezon
City in 1947. In 1985, Pepsi Philippines became a Filipino corporation when the Escaler clan led Pepsi-Cola
Distributors of the Philippines Inc. acquired its franchising and bottling rights. Premier Beverages led by
Luis Lorenzo Sr. and the AFP-RSBS - assumed majority ownership of the firm in 1989, and gave it a new name:
Pepsi Cola Products Philippines Inc. (PCPPI)

II. Mission

We will continue to market a portfolio of international and home-grown branded quality products
at prices that provide good value to our consumers in key Food & Beverage categories

We are committed to expand the business and provide healthy financial returns to our
shareholders, opportunities for growth and enrichment to our employees, business partners and the
communities where we operate.
III. Vision

Be the premier Food & Beverage Company in the Philippines.

Core Values of Pepsi Philippines:

1. Passion
2. Excellence
3. Professionalism
4. Service
5. Integrity

IV. Product/Service Offerings

PRODUCTS DESCRIPTION
Pepsi Max The bold, intense taste of Pepsi
Max powers all-out, no-limits
excitement
The cola taste. The cola kick.
The cola hit. Without the sugar.
It is a low calorie and sugar-free
version of Pepsi.

Pepsi Light Zero sugar, zero calories, zero

carbs. Great taste without the
guilt.
With its light, crisp taste, Pepsi
Light gives you all the
refreshment you love.
A lemon-flavored diet pepsi.

Pepsi Diet Love every sip of Pepsi Diet.

It is the no calorie carbonated
cola soft drink version of Pepsi.

Pepsi Regular Bold. Refreshing. Robust. Taste

the feeling.
Every pepsi refreshes the world.
It is the commonly known
version of Pepsi with a unique
taste that quenches your thirst.

.
 V. Selling Price/Pack Size

The table below shows the selling prices and pack sizes of Pepsi Cola.
Table 5. Varieties of Pepsi-Cola
PRODUCT SIZE PACKAGING PRICE
PEPSI - DIET 1.5 LITERS BOTTLE (RETURNABLE) P 35.00
PEPSI -DIET(LIGHT) 350 ML IN CAN P 41.00
PEPSI - LIGHT 2 LITERS BOTTLE (RETURNABLE) P 31.00
PEPSI- MAX 1.5 LITERS BOTTLE (RETURNABLE) P 35.00
PEPSI - MAX 500 ML BOTTLE (NON-RETURNABLE) P 44.00
PEPSI - MAX 350 ML IN CAN P 41.00
PEPSI (REGULAR) PET 300 ML BOTTLE (NON-RETURNABLE) P 9.00
PEPSI (REGULAR) 1.5 LITERS BOTTLE (NON-RETURNABLE) P 44.00
PEPSI (REGULAR) 350 ML IN CAN P 41.00

VI. Distribution Network

Pepsi-Cola Products Philippines, Inc. is based on Muntinlupa City, Philippines. The company has
many plants in the Philippines that distributes and offers their products through direct sales, distributors,
and wholesalers to supermarkets, restaurants, convenience store chains, and bar trades.

Pepsi-Cola Products Philippines Inc. (PCPPI)

Muntinlupa Manufacturing Plant Head

Tanauan Plant Cebu Plant San Fernando Rosario Plant

Naga Plant
Plant
Zamboanga Cagayan de Oro
Davao Plant Plant Bacolod Plant Iloilo Plant
Plant

Modern Trade Operations Cagayan Valley Operations

(Business Unit) (Business Unit)

Direct Store Delivery Third Party Distributors Wholesalers

Supermarkets

Restaurants

Convenience
Stores

Bar Trades
Figure 2. Pepsi-Cola Distribution Network
 CHAPTER 5
REVIEW OF CURRENT MARKETING EFFORTS
The following shows the review of the marketing operations that took place in Pepsi Cola.

I. Current Target Market

The current target market of Pepsi-Cola Philippines is the consumers in socio-economic classes A,
B, C, and D.

II. Positioning Statement

To each and every one of us, Pepsi is a budget friendly that can be bought by anyone. It is easily to find
because it is distributed nationwide.

"Sarap Magbago” is the tagline of the positioning statement of Pepsi Cola Philippines.

III. Current Sales Performance

Income Statement of Pepsi-Cola Products Philippines (2013-2016).

2016 2015 2014 2013
Sales/Revenue 30,320,000 27,333,000 25,325,000 22,462,000
COGS 24,084,000 21,476,000 19,540,000 16,971,000
Gross Profit 6,914,000 6,388,000 6,320,000 5,953,000
Operating Expense 5,653,000 5,245,000 5,222,000 4,701,000
Net Profit 853,000 812,000 811,000 903,000
Source: The Wall Street Journal, 2017

IV. Current Marketing Strategies and Actions

Pepsi-Cola Products Philippines Inc. utilizes a variety of advertisements to be able to reach their
market. Its current marketing strategies include:

1. Television Commercial

On the year 2016, Pepsi Philippines aired a 75-second commercial during that year's Christmas season.
It was in line with the "Pepsi Liter of Light" with the aim to give a gift of light for Christmas. This strategy was
made to show the public that bottles from Pepsi can be used to light up homes and the community as a whole.
Thus, increasing their brand awareness.
 2. Social Media and Website

Pepsi Philippines uses a social media page in Facebook as another marketing strategy. They use this as
a platform for showing their latest promotions and other current advertisements. Moreover, it is where they
post some photos and videos to promote their "games" and "challenges" which are a hook for their target
markets.

Pepsi Philippines also has their own website where different information about their company can be
easily accessed by the public. It includes their line of products, company background, advertisements,
promotions and other necessary information about Pepsi Philippines. This strategy makes them more
connected to their target markets.

3. Programs/Partnership with Other Organizations

By providing access to livelihood, Pepsi Cola Products Philippines Inc. helps start-up entrepreneurs
who want to improve their lives and succeed. The main program under the Corporate Social Responsibility
Commitment of Asenso is the Entrepreneurial Distribution System (EDS), which was started over 10 years
ago. EDS helps individual entrepreneurs to buy Pepsi products and sell these at small sari-sari stores, giving
them a source of livelihood.

Pepsi encourages its employees to dedicate time for volunteer work to become stewards for the
community. Through the Bukluran Council, employees are empowered to extend a helping hand to the
community for projects the Council deems relevant and urgent. This volunteer tradition has been going
on for over 20 years – and this is a unique opportunity within PCPPI to touch the lives of others.

CHAPTER 6
COMPETITIVE ANALYSIS
I. Industry Participants

Here are the important players in the industry of Pepsi Cola:

Coca-Cola Femsa Ph – Coca-Cola Softdrink

Coca-Cola Femsa Philippines Inc. is formerly known as Coca-Cola Bottlers Philippines, Inc., a
Philippine-based company engaged in bottling and distribution of Coca-Cola soft drink brands. It is among
the ten biggest Coca-Cola bottlers globally and one of the top 100 Philippine corporations. It operates 23
plants and 42 sales offices with over 7,800 direct employees. It offers the widest selection of beverages
for different needs like soft drinks, water, juices, teas, sports and energy drinks. Coca-Cola is the most
popular and biggest-selling soft drink in history, as well as the best-known brand in the world.

Cosmos Bottling Corporation - Sarsi

Cosmos Bottling Corporation (CBC) and its other branches are engaged in the manufacturing,
marketing and distribution of soft drinks. Originally established as the Manila Aerated Water Factory, CBC
is the first soft drinks manufacturer in the country. The company's branded products available in the
domestic market nationwide consist of Pop Cola, Sarsi, Cheers Lemon and Orange, Jaz Cola and Sparkle.
These products are manufactured using a combination of imported and locally produced ingredients. The
Sarsi and Sarsi Light brands are directed to Class A and B markets, while the Pop, Jaz, Sparkle and Cheers
brands are primarily marketed to the Class C and D population segments. CBC operates two subsidiaries,
namely, Cosmos Bacolod Bottlers, Inc. and Cosmos Visayas Bottlers, Inc.

ARC Refreshment Corporation – RC Cola

ARC Refreshment Corporation is empowered with an exclusive license awarded by RC Cola, U.S.A.
to manufacture and distribute RC Cola in the Philippines, ARC Refreshments Corporation steadily gained
recognition. Under the guiding hand of its founders, the company continues to flourish and is now a major
player in the beverage industry. Recognized by RC Cola International Largest Bottler in the world, with
more than 80% distribution level and Market Share of 12% nationwide.

They consist of many brands such as RC Cola, RC Cola free, Juicy Lemon, Fruit Soda Orange,
Seetrus, RC’s Rootbeer, Rite’ n Lite and Extra Joss Maxx.

Pepsi-Cola Product Philippines – Pepsi Softdrink

Pepsi-Cola Products Philippines Inc. is the exclusive bottler of PepsiCo beverages in the Philippines,
with a relationship spanning 66 years. Lotte Chilsung, one of the biggest beverage companies in South
Korea, is the lead shareholder of PCPPI as an independently-listed company and co-manages it with
PepsiCo. It has established manufacturing facilities across the country, serving at least 500,000 outlets
and providing employment through its extensive distribution network.

It consists of different products such as Pepsi-Cola, Mountain Dew, 7-Up, Mirinda, Mug, Gatorade,
Tropicana, Lipton, Sting, and Premier.

II. Comparative Brand Performance

Coca-Cola and Pepsi are the two main competitors in the soft drink industry and they are the
brands that dominates the market shares. Coca-Cola has 65.2% shares in the market, followed by Pepsi
that has 19.8%. Coca-Cola's market share is 3 times higher than Pepsi. Cosmos is third with a share of 9.5%
and ARC has 3.0%.

COCA COLA PEPSI COLA COSMOS ARC

Market Share 65.2% 19.8% 9.5% 3.0%
Market Size 53,639,000 16,306,000 7,843,000 2,432,000
III. Comparative Analysis

Table 6. Pepsi and its Competitors.

Product Pepsi Coca-Cola RC Cosmos (Sarsi)

Teenagers and Youngsters and Teens, Families, Teens and

Target Market professionals youth Community, Families
Working people
It is a budget Well known and Budget friendly for Budget friendly.
Positioning friendly drink for trusted brand. everyone.
everyone.
300 ml(bottle)- 300 ml(mismo)- 300 ml (bottle)- 8.00 300 ml(bottle)-
Sizes & Price 9.00 10.00 1.5 L (bottle)- 17.00 8.00
350 ml(in can)- 350 ml(bottle)- 1.5 L (bottle)-
41.00 11.00 50.00
1.5 L (bottle)- 44.00 1.5 L (bottle)- 75.00

Variants Regular Pepsi cola Regular Coca-Cola Regular RC Regular Cosmos

Supermarkets, Supermarkets, Supermarkets, Small Supermarkets,

Distribution Small groceries, Small groceries, groceries, Small groceries
Network Convenience store, Convenience store, Convenience store,
Sari-sari store Sari-sari store Sari-sari store

Promotion TV Ad, Facebook, TV Ad, Facebook, TV Ad, Facebook, Tv Advertisement

Events, Events, Sponsorship Events, Sponsorship
Sponsorship

Merchandising
IV. SWOT Analysis

Strengths
- Worldwide brand recognition
- Good reputation
- Makes effort to make their advertisement
pleasing
- Availability (local and worldwide)
Opportunities
- People's demand for soft drinks is increasing, so
Pepsi makes this as an opportunity to grow.
- Establishing new branches
- Reducing costs for the company
- Adapting to market trend
Weaknesses
- Does not give discounts to retailers
- Selective in promoting customers
- Inability to substantially product differentiate
Threats
- Strong competition with other brands
- Soft drinks are not good for people's health, and
people are aware of it, making it a threat to the
company
- Increase in shipping and handling cost

CHAPTER 7
MARKETING OBJECTIVES
1. Sales Objectives

A. Sales in Percentage

To increase sales of Pepsi-Cola Philippines to 12% by the end of 2017.

B. Sales in Peso

To increase sales of Pepsi-Cola Philippines from 853 million in 2016 to 900 million in 2017.

2. Profit Objectives

To increase net profit of Pepsi-Cola Philippines to 35% by the end of year 2017.

3. Market Share Objectives

To achieve a market share increase of 25% by the end of 2017.

CHAPTER 8
MARKETING STRATEGIES

Mainly, teens belonging to Class C and D are the primary target market, consisting 100% (100/100)
of the respondents. They are students who want to quench their thirst and be freshened up by drinking
some refreshments. Since they are still non-workers, they look for a brand of refreshment which is
affordable and easy to find. These teens want to relieve stress from their daily school work, that's why
they are likely to have soft drinks to help replenish their selves. They usually consume these during
occasions such as birthdays, reunions, festivals and even just for snacks and usual meals.
I. Positioning Statement

To quench the thirst of active teens and young professionals, Pepsi offers the best beverage that
will give satisfaction and enjoyment to everyone. It provides you an affordable price which can be bought
everywhere. The best feeling when drinking Pepsi is when you burp and all you can say is 'solved!'

The tagline is: “Buo ang araw ko.”

II. Other Strategies

Strategy #1: Market Development

Strategy #2: Intensive Promotion

The marketing action will focus more on the distribution of the product to different places. It will
focus more on its availability in the market to spread the happiness that it is bringing to the people. Pepsi
will also do more advertisements such as in televisions and on internet that will affect the life of the
people.

A. Market Development

Action Plan #1: Further distribution of products in supermarkets, shopping malls and convenience
stores.

Objective: To be convenient for the target market to locate which will pave the way for brand
recognition and improve sales.

Based on the results of the survey, Pepsi products are not much bought in supermarkets, shopping
malls and convenience stores by the target market. This is the reason why thorough distribution of their
products must be done in order to reach the customers easily. There are a lot of advantage if products
will be able to be more available in various supermarkets like Savemore, Ever, Robinsons, Puregold, Super
8 and others. Also, they can find more opportunity from having distributions in Shopping Malls such as
SM, Ayala Malls, Robinsons and other well-known malls. Lastly, it is also timely to have an intensive
distribution in convenience stores like 7-Eleven, Mini Stop, Lawson, Family Mart, All Day and a lot more.

As soon as further distributions of products are made, the target market will be able to recognize
more of their products which could yield growth in sales.
B. Intensive Promotion

Action Plan#2: Wider range of enhanced advertising in television commercials, social medias
(internet), radios, periodicals, posters, billboards and other mediums of promotion.

Objective: To increase brand awareness and be able to reach out to the target market and stay
close to them.

The results of the survey indicated that only a few portion of the respondents think of Pepsi when
asked about what brand goes to their minds when it comes to soft drinks. Thus, it is very relevant to focus
more on increasing brand awareness through a variety of promotion mediums. Along with this, Pepsi also
has to enhance the kinds of advertisements that they have. Engaging more on catchy television
commercials will be a great help since a lot of the respondents became aware of soft drink brands through
this kind of promotion. In addition, Pepsi needs to be more active in their social media pages and website
since their target market are mostly millennials who are users of these kind of mediums. On the other
hand, for those on-the-go professionals, it will be convenient for them to receive in-depth advertisements
from radios, periodicals, posters and billboards as they go on their daily routines.

The wider range of enhanced advertisements will help keep a strong relationship with the target
market which will result to an increase in brand awareness.

CHAPTER 9
MARKETING PROGRAM/SCHEDULE/ACTION PLAN
Action Plan #1: Further distribution of products in supermarkets, shopping malls and convenience
stores.
Objective: To be convenient for the target market to locate which will pave the way for brand
recognition and improve sales.
Table 7. Breakdown of Action Plan #1
Activity In-Charge Duration Budget
Meeting and discussion with the Top Marketing Manager 1 day P7,000
Management regarding the
proposed distribution plan
Consent or Approval of the Marketing Manager 1 day
suggested distribution plan
 Discussion about the strategy Marketing Manager and 1 day P5,000
together with the Logistic Logistic Manager
Department
Implementation of the distribution Logistics Department On going P4,000,000
plan
Total P4,012,000

Action Plan #2: Wider range of enhanced advertising in television commercials, social medias (internet),
radios, periodicals, posters, billboards and other mediums of promotion.
Objective: To increase brand awareness and be able to reach out to the target market and stay close to
them.
Table 8. Breakdown of Action Plan #2
Activity In-Charge Duration Budget
Meeting with the in-charged Marketing Department 2 weeks P10,000
managers and/or administrators
of the different companies for the
television commercials, billboards,
periodicals, posters, and other
mediums;
Approval of the plan Marketing Manager 2-5 days P5,000
Fees on the said advertisements P4,500,000
Total: P4,515,000
Formulate ideas with the IT Marketing Manager and 2 days P6,500
Department regarding different Advertising Agency
possible ways to enhance the
company’s website and social
networking sites
Redesigning and/or updating of Advertising Agency 1 week
the previous site
Approval of the proposed plan Marketing Manager 1 day
Updating the sites Advertising Agency 6 months
Monitoring of the sites Marketing Department On going P750,000
and Advertising Agency
Total: P756,500
Overall Total for Action Plan#2: P5,271,500

Marketing Budget

Action Plan Total Cost

Action Plan #1: Further distribution of products in supermarkets, P4,012,000
shopping malls and convenience stores.
Action Plan #2: Wider range of enhanced advertising in television P5,271,500
commercials, social medias (internet), radios, periodicals, posters,
billboards and other mediums of promotion.
Total Marketing Budget: P9,283,500
 CHAPTER 10
FINANCIAL PROJECTIONS
Below is a table that shows the financial projection of Pepsi-Cola Philippines from the year 2014
to year 2017.

2014 2015 2016 2017

Sales 25,325,000 27,333,000 30,320,000 55,258,000
COGS 19,540,000 21,476,000 24,084,000 38,712,000
Gross Profit 5,786,000 5,857,000 6,236,000 16,546,000
Operating expense 4,687,000 4,700,000 4,969,000 5,389,000
Marketing Budget - - - 9,283,500
Product Contribution 1,099,000 1,157,000 1,267,000 1,873,500
to profit
All values in PHP Millions.

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