Marketing Plan Hot Ice Tea

Table Of Contents

Page
Sr. Particular
No.
01 Executive Summary 02
02 Company Description 03
03 Situation Analysis & Market Summary 04
04 Trends 05
05 Profitability & future growth potential 06
06 Competition 06
07 Target Market 08
08 Distribution 08
09 Positioning & Advertising 09
10 SWOT Analysis 10
11 Objectives & Goals 13
12 Marker Strategy 14
13  Segmentation 14
14  Targeting 16
15  Positioning 17
16  4 P's 17
17 Action Plan 30
18 Budget 31
19 Control 32

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EXECUTIVE SUMMARY
The following Marketing plan is about to introduce the new innovative product by Pepsi that is
named as Hot Ice Tea. This will be a convenient product that will be readily available to quench
the thirst of our customers and will also give the nutritional benefits of Tea. The main
characteristics of this product will be the hot and cool nature of the product i.e. it can be served as
a hot drink as well as a hot drink; in both way it will give the same satisfaction to the customer and
there will be no weather constraint for this product and it can be used through out the year. So the
Hot Ice Tea will not be a seasonal drink and this will be the main source of success of the product.
The product will be introduced to capture the 20% market share in the category of functional
drinks market. The market is still unserved for this segment and company will be going to
introduce a new a market trend as well as going to challenge its competitors. This product will lead
the company in functional drink market and will carry the company on the top spot. The target
market for the product will be the health conscious and energetic customers. Our product will
broadly describe the main benefits of tea, Studies continue to show the beneficial properties of
teas, with health benefits ranging from lower cholesterol levels to improve arterial health and
decreasing chance of cancer. This positive press has definitely increased the demand for tea. In the
first year of operation the Hot Ice Tea will be introduced in Pakistan because there are more
potential and enthusiastic customers and we can get result more fastly about the success of
product.

The Company will increase its market share through targeted advertising to increase the number
customers who want convenience and are looking to have a drink of unique nature which will give
them taste, energy and the nutritional benefits of tea.

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COMPANY DEESCRIPTION

PEPSI INTERNATIONAL

HISTORY
PepsiCo is a world leader in convenient foods and beverages, with revenues of about $27 billion
and over 143,000 employees. The company consists of the snack businesses of Frito-Lay North
America and Frito-Lay International; the beverage businesses of Pepsi-Cola North America,
Gatorade/Tropicana North America and PepsiCo Beverages International; and Quaker Foods
North America, manufacturer and marketer of ready-to-eat cereals and other food products.
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.would entertain the listener with the latest musical selections rendered by violin or piano or
both. The new name, “Pepsi Cola”, is derived from the two of the principle ingredients, Pepsin and
Kola Nuts. It was first used on the August 28. At that time, Bradham’s advertising praises his drink
as “Exhilarating, invigorating, aids digestion”.

In 1992 Pepsi-Cola formed a partnership with Thomas J. Lipton Co. Today Lipton is the biggest
selling ready-to-drink tea brand in the United States. Outside the United States, Pepsi-Cola
Company's soft drink operations include the business of Seven-Up International. Pepsi-Cola
beverages are available in more than 190 countries and territories.
In Asia, they selected Lahore to make their regional office. This was done in 1970. This regional
office is monitoring all the operations carried out in South West Asia. As in Pakistan, they only
entered beverage industry. They have eleven bottlers covering whole Pakistan. The plant operating
here is Riaz Bottlers (Pvt) LTD. This plant was established at Lahore in 1974. The total capacity of

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the plant is 30,000 cases per day. They have four filling lines in the plant operating on the three
shift bases. Each shift is of eight hours. They have permanent work force of 750 people and they
employee approximately 1000 people more on temporary basis during summer season.
(Source www.pepsico.com)

Situation Analysis

Pakistani lifestyle and work habits have made convenience a necessity. As employers demand for
productivity from their employees, consumers are more pressed for time. In addition, the shaky
economy has made Pakistani fear for their jobs; thus, any product that can fill the consumers' need
for convenience and speed are almost automatically embraced into the Pakistani life style. Hot Ice
Tea offers a unique drinking experience to its consumers.

Market Summary

Industry Analysis In 2007, the tea industry reached the $1.7 billion category and it is expected to
continue growing indefinitely (Mintel2007). Market analysts believe the tea industry will continue
to boom and is not expected to reach saturation level in the near future. The favorable movement
in the tea industry can be attributed to two major factors: a) consumers need for convenience and
time-saving services; and b) the positive press given to tea.

Trends

For the last decade, the health benefits of tea have gained wide coverage in the media. Studies
continue to show the beneficial properties of teas, with health benefits ranging from lower
cholesterol levels to improve arterial health and decreasing chance of cancer. This positive press
has definitely catapulted the demand for tea.
Both the need for convenience and positive press on tea have spurred an increase in sales of tea
products, specifically ready-to-drink (RTD) teas sold in single-serve containers Recognizing this
trend, various companies in the tea industry have come up with innovative products to take
advantage of the booming market for ready-to-drink teas. Lipton tea, one of the global leaders in

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refreshment brands, launched new products to meet the growing the need for ready-to drink teas
and introduced innovative product line to capture the health-conscious market.
Today, while the soft drink industry’s value has increased , the volume sales of carbonated soft
drinks has declined due to a large proportion of consumers who are opting for the trend towards
healthier alternatives in the functional drink segment (energy drinks, smoothies, milk & juice
drinks, sports drinks) as well as bottled juices and water. Companies have been actively engaged in
new product developments in order to counter the growing concerns about negative health impacts
of high-fructose drinks, but also to increase the demand in a market where product offerings are
quickly maturing. New flavor introductions and health-conscious formulations have been launched
in an attempt to offset the decline in carbonated soft drink sales. The functional market is expected
to show sustained growth and consumer interest in the future years as consumption shifts to
trendier, healthier and more sophisticated product.

Profitability & future growth potential

In 1993, Concentrate Producers earned 29% pretax profits on their sales, while bottlers earned 9%
profits on their sales, for a total industry profitability of 14%. While the functional drinks sector
only accounts for 3.7% of the total soft drinks sales in 2004, estimates are forecasting a growth of
7.3% in sales and 11.0% in volume consumption by 2009. (Source wikipidia)

Competition

Pepsi's top competitors for the soft drinks industry are coca cola (43.6%) and Cadbury-Schweppes
(15.8% of market), which combined, represent about 58% of the total market. Pepsi's share is
42.7% of the total soft drinks market. In the functional drinks sector, PepsiCo is the current market
leader with 60.5% of the market shares in 2007. Coca-Cola Co is second with 32.8%. Hot Ice Tea
will launch into a currently un served subset of that market (RTD “Ready-To-Drink” Hot Ice Tea),
which is until now un existing. It is anticipated that the following brands could potentially compete
with Hot Ice Tea in the functional drinks market: Brisk, Lipton Iced Tea, Sobe (owned by
PepsiCo), as well as Snapple’s and Hawaiian Punch (owned by Cadbury/Schweppes). Hot Ice Tea

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also creates a potential situation for cannibalism with Pepsi's very own brands of iced tea and other
functional drinks.
Consumers firstly decide that they are going to have a soft drink. Then they compete brands with
each other. Like they compete Coke with Pepsi and Sprite with 7up and team .So the major
competitor of PEPSI is Coke.
When they motivate to any other brand or on PEPSI it’s in instinct basically that based on
messages derive certain feelings.
But PEPSI thinks in a different way, they believe that RC Cola, new coming AMRAT Cola, and
all juices, even they take water and tea as their competitors.

DIRECT COMPETITOR
COCA COLA is the direct competitor of PEPSI and all other soft drinks in the market.
The Coca-Cola Company’s core undertaking is to benefit
and refresh everyone it reaches. Founded in 1886, we are
the world’s leading manufacturer, marketer, and
distributor of non-alcoholic beverage concentrates and syrups, which are used to produce nearly
400 beverage brands that make up for our wide portfolio. Our corporate headquarters are
established in Atlanta, and we are holding local operations in over 200 countries around the world.
Our activities cover all sectors of the beverage industry. We are the second leading player in
functional and Asian specialty drinks, while ranking number one in value for the ready-to-drink tea
sector. (Company source)

INDIRECT COMPETITOR

All the tea brands and water is in indirect competition with PEPSI.
Source: (PEPSI website)

TARGET MARKET

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There are two major target markets for ready-to-drink Hot ice tea.
 One group is the consumers on the go. These are the employees, students, and other
consumers who lead a busy lifestyle. The hectic Pakistani lifestyle demands for optimize
productivity with lesser time-consumption. Thus, there is a need for products that are
accessible and readily available. Convenience has dominated the market, particularly the
food and beverage industry.

 The other group is made up of health conscious consumers, specifically the younger who
demand anything healthy. The positive reviews as well as the studies on the benefits of tea
drinking have stirred an interest in tea drinking.

Distribution

The current market for Hot Ice Tea is fragmented, since the distribution is restricted to local outlets
and selling points such as counters and small Hot Ice Tea shops in scattered locations. However,
direct competition from these local players is not anticipated, since the marketing roll-out will
initially emphasize on product awareness and both sales channels do not reach or serve the same
market (retailing vs. counter/restoration). A strong distribution system already exists with PEPSI,
since partnerships and channels are already in place. This will facilitate the product’s reach into its
target market.
1. Retailing
2. Wholesaling

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Positioning

“Hot Ice Tea” will be a bottled beverage and will be positioned as the only ready-to-drink Hot Ice
Tea product available on the market. The beverage will have a differential advantage that it can be
drink as hot drink and can be taken as cold drink. It will bring an entirely unique drinking
experience to its consumers. It will present itself as a funky and unusual alternative to traditional
tea while providing the great taste of authentic fruit juice in an attractive and convenient
packaging.
(www.pepsico.com)
Advertising

 Informative Advertising
There will be Informative Advertising during market of Hot Ice Tea and that will help company:
1. Informing the market of a price 5. communicating customer value
2. Describing available services 6. Telling market about a new product
3. Correcting the false impression 7. Explaining hoe the product works
4. Building a brand and company image 8. Suggesting new uses for a product

 Persuasive Advertising
It will help marketers to:
1. Building brand preferences
2. Encouraging switching to your brand
3. Changing customer's perception of product attribute
4. Persuading customers to purchase now
5. Convincing customers to tell others about product
SWOT Analysis (Source PEPSI web site)

STRENGTHS WEAKNESSES

 Pepsi has a broader product line and • Pepsi hard to inspire vision and direction for
outstanding reputation. large global company.
 Merger of Quaker Oats produced synergy

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across the board. • Not all PepsiCo products bear the company
 Record revenues and increasing market name
share.
 Lack of capital constraints (availability of • PepsiCo is far away from leader Coca-cola in
large free cash flow). the international market – demand is highly
 Great brands, strong distribution, elastic.
innovative capabilities
 Number one maker of snacks, such as corn
chips and potato chips
 PepsiCo sells three products through the
same distribution channel.

OPPORTUNITIES THREATS

• F&B industry is mature

 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".
• 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.

• Size of company will demand a varied marketing

program; Social, cultural, economic, political and
governmental constrains.

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SWOT Analysis of Pepsi Co.

Strength

• Pepsi has a broader product line and outstanding reputation.

• Merger of Quaker Oats produced synergy across the board.

•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

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• 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

• F&B industry is mature

• 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.

• Size of company will demand a varied marketing program; Social, cultural, economic, political
and governmental constrains.

Objectives and Goals

Company is centered on these objectives:
With the expected growth of the billion dollar ready-to-drink ice tea market, Hot Ice Tea is poised to
capture a bigger share of the market with an aggressive marketing strategy: from packaging to
advertising.

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Short Term Goals:

Improve market presence by 20%
Short-Term Objectives
Aggressive Marketing Strategy PepsiCo can take advantage of the positive press on the health benefits
of tea to boost the sales of its hot ice tea product line. The company can use recent studies on the health
benefits of tea as the basis of its press releases and advertising campaigns.
Improve Packaging The Hot Ice Tea will be introduced in two sizes: the 250ml bottle and 1/2 liter
bottle. PepsiCo can come up with other packaging sizes to ensure that consumers will have other
choices and that Hot Ice Tea will be easily and readily available to consumers.
Improve Shelf Presence PepsiCo can make a deal with retailers ensure retail shelf space and
prominent positioning for Hot Ice Tea.“ Although an average shopper may not notice what brands are
positioned in prominent places on shelves or how much room is allotted to each manufacturer, shelf
space and positioning as make or break factors in introducing new products”
Long-Term Goals:
World Number One ready-to-drink ice tea
Long-Term Objectives:
Product Innovation PepsiCo must continue its innovative research and development strategy to come
up with new flavors and products. PepsiCo has extensive research facilities on product improvement.
The company can use its resources and professional expertise to come up with new flavors that will
suit the continuous demand for healthy ready-to-drink hot ice tea. With aggressive marketing strategy
and product positioning, Hot Ice Tea is ready to take the global lead in ready-to-drink tea industry.

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MARKETING STRETEGY

SEGMENTATION

Segmentation variables for consumer market of

Hot Ice Tea
TYPE VARIABLES PARTICULARS

World region or Nationwide (all provinces and territories) with

country emphasis on urban / metropolitan areas, and
adapted strategies for all geographical groups

City or Metro size 5000-20,000,upto 400,000 and over

Density Urban, suburban

Climate Northern southern eastern western

Age 12-19,20-34,35-49,50-64,65+
Gender Male , Female
Family size 1-2,3-4,5+
Family Life Cycle Young ,single married under 18 older
Income Under 10,000 and over 100,000
Occupation Professional ,proprietors, clerical sales
persons
Education Grade school or less high school ,graduate
and above
Race All (Asian ,Hispanic, black ,white)
Generation Generation y
Social class Working class, middle class, upper middle
class, lower uppers ,upper uppers
Life style Achievers and strivers
Personality Compulsive ,authoritarian gregarious,
ambitious

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Occasions Regular occasion and Special occasion

Benefits Quality, convenience, nutritional
User Status Non-user, regular user, first time user

Usage rate Light user , medium user , heavy user

Loyalty status None , medium , strong
Readiness stage Un aware , aware ,interested , intended to buy

Attitude towards Positive, enthusiastic , indifferent

product

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TARGETING

Segment identification:

RTD (Ready-to-drink) bottled Hot Ice Tea, to be established within the Functional Drinks sector.

Segment needs:

The product will have both physiological need (hydrating and nutritional value) and social needs
(perception of a social, fun drink with a sense of belonging within peer consumer groups)

Segment trends:

The current trends include a shift away from junk foods and carbonated drinks, a growing interest
for healthier / beneficial products for the “mind and body” the trend towards the availability of on-
the-go products for those with an active lifestyle, as well as the trend for personalization through
customization (or for beverages, through variety-seeking in a wide introduction of flavours.
(www.oppapers.com)

Segment growth potential:

Statistical reports anticipate a segment growth of 1.72% over the next 9 years (2015) for the 10-29
years old subsets.
(www.oppapers.com)

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POSITIONNING

Positioning strategy

The only RTD bottled Hot Ice Tea available. Funky & eye-catching bottle, functional packaging,
premium-priced, cool, new and unusual, unique drinking experience, aspects of play variety of
flavors, sweet, refreshing, for hip & young people, healthier alternative to heavy-sugar drinks.

POSITIONING STATEMENT

To young active soft drink customers who have little time for sleep, Hot Ice Tea gives you the
nutritional benefits of tea and keep you awaken. You can take it while on the go, now it's your
choice that you can chill it and you can hot it. There is no boundary of season now because Hot Ice
Tea can be taken from both aspects hot drink and cold drink.

PRODUCT

PRODUCT STRATEGY

The core

o Hot Ice Tea beverage in a pre-bottled, ready-to-drink format.

The actual product

The Hot Ice Tea will be a convenience product.

o Packaging and labeling:

1. Twist Cap
2. freshness seal

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3. Easy to grab bottle
4. Flavor
5. logo of Hot Ice Tea
6. Slogan
7. Ingredients
8. PEPSI product
9. 250 ml bottle
10. Nutritional Details
11. Sweetened or Diet

o Branding:
Colorful, aspect of play, round shaped, prominent Hot Ice Tea logo written in modern font.
o Trade name:
Hot Ice Tea ™, a PEPSI product

o Brand personality:
Energy, funky, cool, functional, original, funny, healthy, etc.

o Brand equity:
PEPSI provides a quality, consistent, innovative and accessible soft drink reputation.

o Product life cycle:

Hot Ice Tea is a low-learning product. With a strong marketing campaign, “sales [will] begin
immediately and the benefits of the purchase are readily understood” Since Hot Ice Tea is prone to
product imitation, Pepsi's strategy is to broaden distribution quickly, which is currently feasible
thanks to the company’s high manufacturing capacity.

o Product class:

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Food & beverage  Soft Drinks  Functional Drinks Hot Ice Tea follows the practice of product
modification PEPSI is introducing an existing beverage ( Hot Ice Tea) but redefines the drink with
a new, more convenient package. Hot Ice Tea will now become a widely available drink in
multiple retailing (distribution) channels.

Product Quality

 Performance Quality
The performance quality of Hot Ice Tea will be that it will produce what it functions, and the
main function of Hot Ice Tea is the hot and cool nature of product. Customer can take it as a
hot drink by got hot by oven and can take it as cool drink by chilling it in deep freezer it is up
to the customer.
 Conformance Quality
The conformance quality of Hot Ice Tea will be that it will be free from any defects; it will
deliver its targeted performance and quality

PRICE

PRICE STRATEGY

The price strategy that will be undertaken should consider the following aspects:
1. Consumer demand
2. The product lifecycle
3. Potential substitutes

Customer demand

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Customer demand is a crucial factor which is driven by tastes, income and availability of others
similar products at a different price. For a lot of consumers, value and price are highly related:
‘’the higher the price, the higher the value’’. Consequently, Pepsi's intention to position Hot Ice
Tea as a unique, innovative and attractive product gives it a certain control over Hot Ice Tea price.
To be able to implement higher pricing though, the
minimization of the non-monetary costs to customers should
also be include along with awareness of the product (notably by
advertising) and value (benefits).
The product lifecycle
The company should take advantage also to the fact that the
newer the product and the earlier in its lifecycle the higher the
price can usually be. It ensures a high profit margin as the early adopters buy the product and the
firm seeks to recoup development costs quickly and it also brings a certain prestige to the product.
(Source netmba.com)

 Product development

It begins when the company finds and develops a new product idea. During product development,
sales are zero and the company's investment costs mount.

 Introduction

Is the period of slow sales growth as the product is introduced in the market. Profits are
nonexistent in this stage because of the heavy expenses of product introduction.

 Growth

Is a period of rapid market acceptance and increasing profits .

 Maturity

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Is a period of slowdown in sales growth because the product has achieved acceptance by most
potential buyers. Profits level off or decline because of increased marketing outlays to defend the
product against competition.

 Decline

Is the period when sales fall off and profits drop. (Ref. from book)

Potential substitutes

PEPSI is constrained by the monopolistic market in which it competes. The main characteristic
however is product differentiation.

Pricing strategy

The point here is that PEPSI can not set a price that is too high because competitors will be
attracted by potential profits and will follow by a lower price. After having taken all the important
factors into consideration, there are five price-level fixing approaches seem appropriate.

1. Cost Based Pricing

One of the central objectives of this project being to become the market leader in functional drinks,
PEPSI is willing to stay among the top competitors, if not becoming the greater, by achieving a
certain target profit. This could be obtained by establish a price that will largely cover variable and
fixed costs while bringing tremendous profits.

2. Value Added Pricing

Competitors and potential substitute's prices can also be part of the strategy. Having a higher price
could make customers aware of the additional benefits and the higher quality of Hot Ice Tea.

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3. Value based Pricing

The company sets its target price based on customer perceptions of the product value. The targeted
value and price then drive decisions about product design and what cost can be incurred. As a
result pricing begins with analyzing consumer needs and value perceptions, and price is set to
match consumer's perceived value.

4. Market Penetration Pricing

The company can set a low price for a new product in order to attract a large number of buyers and
a large market share.

5. Break-even pricing

The company has to make some strategies for break-even prices, setting prices to break even on
the costs of making and marketing a product; or setting prices to make a target profit.

PROMOTION

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PROMOTION STRATEGY

Objectives:

 To initiate strong awareness about the launch of Hot Ice Tea throughout Generation Y (10-
29 years old) consumers as well as their parents.
 To win market shares over our top functional drinks competitor, PepsiCo.
The promotional activities will convey the clear message that “Hot Ice Tea is a healthy drink for
sporty and young people who simply enjoy taking care of their body and life.”

Concepts:

 “Think outside the bubble”: Be Bold, Be Original, Be Different, Be Yourself.

 “A good spirit in a good body.”
 “For the out-of-the-ordinary individuals who like to challenge themselves.

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Media selection:
Before choosing the appropriate Medias, it is important to note that Generation Y consumers only
give partial attention to media. However, they can be reached through integrated programs. They
are typically using more than one communication media at a time; a behaviour that is often called
“multitasking”. This group of consumers doesn’t give its full attention to one single message, but
rather uses continuous partial attention to scan the media. Marketers can still communicate with
Generation Y by using a variety of targeted promotional tools. Another important tactic to reach
our target market is through “Hot Ice Tea” marketing, which PEPSI will heavily use in this
campaign (campus, contests).
Advertising:

Output Examples
Television GEO TV. ARYONE DIGITAL.AAG TV
Radio FM100,FM103,FM106
Magazines TIME MAGAZINE ,akhbar e jahan ,family
Internet Banners on selected websites (gaming, sports, Google, yahoo etc.)

Outdoors Billboards and prints in select areas including:

 Campuses, transportation (bus, metro, stations)
 Tourist areas in high seasonal periods
Personal selling Direct contact with retailers, sales kit strategies to be explained later in
the text.
Public relations Stands or special displays and events in schools, malls, sports events
(i.e. IPL SEASON 2), sponsorship activities
Publicity Conferences, press releases (print and online), marketing through TV
coverage

Justifications for advertising selections

-TV:
Most viewed channel for now a days are geo ,Ary one world and Aag tv and specially etc
and MTV are the most viewed channels by teen age groups.

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TV communicates with sight, sound and motion, which is needed for HOT ICE TEA. It is the only
media that can reach 99% of the homes at once. PEPSI has the budget to cover the high costs of
this media.

-Radio:

FM 100 ,FM 103 ,FM 106.2 AND FM 101 are the most popular fm radio stations which
are equally listened by every age group.
Radio is an already segmented medium. There are many radio stations in Pakistan. The average
University or college student is a surprisingly heavy radio listener and spends more time during the
day listening to radio than watching network television we could also use of “Interactive radio” as
Pepsi has already done in the past.

-Magazines:

We should take advantage of the fact that magazines have become a very specialized
medium. There are many consumers' magazines in Pakistan. Good color production is also an
advantage that creates strong images which is the purpose of PEPSI with its HOT ICE TEA brand.
Each magazine’s readers often represent a unique profile.

Reaching:

-AKHBAR E JAHAN (is the largest selling Urdu magazine in the world)
-FAMILY MAGAZINE
-DEFENCE JOURNAL
-YOUNG WORLD (weekly magazine for young people)
-HUMSAFAR
-PAKISTAN PUNCH
-SHE MAGAZINE (for young girls)
(www.allyoucanread.com)

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-Internet:

Online advertising is similar to print advertising in that it offers a visual message. It also
has additional advantages; it can also use the audio and video capabilities. As we are targeting our
ads to young outgoing people, sound and movement may attract more attention from viewers and
has the unique feature of being interactive. Interactive media would offer PEPSI the opportunity
to reach younger consumers who have developed a preference for online communication.

-Outdoor:

Billboards in specific geographical area would allow us get a good reach and frequency. It is a low
cost and flexible alternative. (Campus, malls, Bus and metro stations)

Promotional Mix:

 Contests:
“Win another Hot Ice Tea flavour”, “Uncover a secret code underneath the bottle cap and win
sporting goods and electronics by logging on the website”, “Win a trip for the 2009 ICL IN
INDIA”. (Arguments: It will increase consumer purchases and encourage consumer involvement
with the product).

 Samples:
Distributed in supermarkets, school/universities. Samples are a way to avoid product resistance
since people are not used to find bubbles in their drinks. Arguments: It will encourage new product
purchases and it represents low risk for consumers since they get it for free. They have nothing to
loose by trying it.

 Point-of-purchase:

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In supermarkets (to reach the parents of generation Y). Arguments: It is also a mean to increase
product trial and provides a good product visibility.

 Others:

In subsequent years, engage in product placement in TV shows or movies.

Trade oriented:

 Allowances and discounts:

Case allowance (Arguments: The “free goods” approach will be used so it can encourage retailers
to buy more of the product to get a certain amount for free).

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 Cooperative advertising:

To encourage retailers to buy our product and to maintain our high level of advertisement that
consumers expect from PEPSI.
Other considerations:

 Scheduling of the advertising:

Pulse scheduling (promotional presence year-round, but emphasized and intensified before and
during summer).
IMC (integrated marketing communication) (source beverage digest)

Target Audience:

 Intermediary:
Personal selling will be more often used

 Ultimate consumer:
PEPSI will use more of mass media because the amount of potential buyers is large.

PLACE

PLACE (DISTRIBUTION STRATEGY)

Hot Ice Tea will be distributed through these channels: supermarkets, convenience stores,
independent food stores, discount stores, multiple grocers, direct sales.

ACTION PLAN

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Step Output Period of time Arguments

To make Pakistani retailers aware of Hot Ice Tea so they

1 Personal selling 1st month to 2nd month
can order it in time

2nd month to mid of 3rd Radio is the most listened media by students and peoples
2 Radio spots
month on the go

The target market will then match an image with the name
Mid of 3rd month to 4th
3 Magazines ads of the product more easily. The recognition of Hot Ice
month
Tea will be faster.
Mid of 3rd month to 4th To send a wide message over Pakistan that Hot Ice Tea
4 Television spots
month is now available.

Making a special section for the Hot Ice Tea in Grocery

th th
5 Point of purchase 5 month to 6 month store will help the new potential buyers to find our product
faster and more easily.

Mid of 3rd month to 4th Putting adds in specific places where Generation Y hangs
6 Outdoors
month out will create an increased awareness of Hot Ice Tea
We will use special events (sports and others) to promote

Hot Ice Tea and also to get in touch with our potential
7 Public Relations 6th month to 7th month
market. It will allow PEPSI to interact with our Generation
Y Consumers.
We will use contest to give a second "push" to the sales of
8 Contest 7th month to 8th month
the Hot Ice Tea.
Use of TV ads and news to make the general public aware
9 Publicity All the time
of the existence of Hot Ice Tea.

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MARKETING DEPARTMENT HIRARCHRY CHART

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BUDGET

The estimated cost that will incurred while marketing of Hot Ice Tea is about 10 crores or 10
billion rupees for one year.

The details are as follows:

Media Explanation of estimated cost that will incurred for 1 year

T.V Adds on TV with different celebrities for one year will cost
approx. 7 crores
NEWS Add in leading news papers will cost approx. 2 million
PAPER
RADIO For 30 second add for 2 months will cost approx. 380,400

MAGAZINE For 1 month advertising in Akhbar e Jahan will cost approx.

200,000
BILL For 3 bill boards on main locations acquiring will cost approx.
BOARDS 10.5 million
FREE Free sampling to main retailers will cost approx. 300,000
SAMPLING TO
RETAILORS
CONTESTS After 6 month of operation if there will be a need to give a 2nd
push to our sales and a contest has to be arranged that will
approx. cost about 5million

CONTROL

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In the first month of operation Management will over view that whether the Marketing goals
and objectives are going in right direction or not if not than what went wrong and what are
differences between actual and expected performance. This may require changing the action
programs or even changing the goals.
 Operating control
It involves checking ongoing performance against the annual plan and taking corrective
action when necessary. It will ensure us that the com-any achieves the sales, profits and
other goals set out in annual plan. It also involves determining the profitability of product.
 Strategic Control
It involves looking at whether the company's basic strategies are well matched to its
opportunities. Marketing strategies and programs can quickly become out-dated and there
will be need of periodically reassess its over all approach to the market-place. A major tool
is marketing audit.

Marketing Audit
There will be a need of monthly marketing audit regarding current activities and sales
volume. It will cover all the marketing areas of business. It will include audit of:

1. Marketing Environment
2. Marketing Strategy
3. Marketing Organization
4. Marketing Systems
5. Marketing Mix
6. Marketing productivity
7. Profitability

Measuring and Managing return on Marketing Investments

After six months of operation we have to measure that whether our investment is being
spent well or not? Are we getting targeted Return on Investment or not?

Return on Investment
The net return from a marketing investment divided by the costs of the marketing
investment. It measures the profits generated by investments in marketing activities.
(Source principles of marketing)

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The consumer purchase decision process

Psychological Social influences Purchase situation

variables

Need motivation

Routine problem
Extensive problem solving
solving

Economic Needs

Search for information

Evaluate alternatives and decide

on solution

Postpone decision Purchase product

Post-purchase evaluation

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