Pepsi Cola Marketing Strategy PEPSI COLA For Pepsi Cola Ltd, marketing opportunity analysis is a continual and ongoing process. Pepsi have used the new- product strategy to realise their ambitions to both defend their current market position, and reinstate their position as a product innovator. Pepsi wishes to create a clear cola that is 100% natural, low in sodium, caffeine-free, and still maintains the flavour of its original cola. They will call it Pepsi Au Naturel. Pepsi's hope is to usher in a new era, and to give them a clear-cut advantage over their rival's, Coca-Cola. By following closely the six steps of the new-product development process, the company could expect such benefits as: improved teamwork, less re-working, earlier detection of likely failure, and higher success rates. (Rix, Peter, 2001, Marketing, A Practical Approach). Stage One: Generating New-Product Ideas The first step for Pepsi Cola to undertake is to generate ideas for the new product. There are many different alternative ideas available to help Pepsi through this process. They shoul...
Pepsi needed a strong regional partner. Pepsi had been falling behind to Coke in Mexican market. However, changes in the regulatory environment had cut Coke’...
There are five categories of new products: new inventions, new category entries, additions to product lines, product improvements, and repositioning target products to new markets for new uses. The process is the same regardless of the category. It includes idea generation, idea screening, concept development and testing, analyzing the business, prototype development, test marketing, and commercialization.
The Porter’s model of competitive advantage of nations is based on four key elements including factor endowments, demand conditions, related and supporting industries and firm strategy, structure and rivalry. This makes it suitable in understanding the competition existing in the soft drinks industry in the Asian markets. The factor conditions identify the natural resources, climate, location, and demographics. Coca cola and Pepsi enjoy the growing population in the Asian markets (Yoffie, 2002). A higher population guarantees the two companies adequate revenues. Other factors include communication infrastructure and availability of skilled workers. Most of the Asian countries are embracing new technologies that grow much knowledge of the diverse beverage drinks. Secondly, the demand conditions play a significant role in enhancing competitiveness for the firms. Both Coca cola and Pepsi are an
They wanted the goods to be convenient for the consumer, but healthy as well so that they can eat these salty snacks on-the- go. The business strategy of the North American PepsiCo. beverages wanted to be innovative. They want to provide carbonated and noncarbonated beverages of all times to different consumers. Their focus is on healthier drinks, such as flavor and vitamin water.
Control of market share is the key issue in this case study. The situation is both Coke and Pepsi are trying to gain market share in this beverage market, which is valued at over $30 billion a year. Just how is this done in such a competitive market is the underlying issue. The facts are that each company is coming up with new products and ideas in order to increase their market share.
By the leader and or leaders not stating that they need a new formula, members would have probably come up with ideas such as introducing a new product instead tailored to Pepsi drinkers taste and not tinker with a winning product already. They definitely should have used a devil’s advocate to argue why their changing the formula was a bad idea, I’m sure the point of what about the current Coca-Cola’s consumers that already like and drink Coke would have come up. The most important thing was of course that they should have considered their already loyal consumers views, and not have focused so much on winning such a narrow group of Pepsi consumers, better research through surveys of their loyal customers should have revealed their feelings about a change in their beloved product and that the customer is king and not the executives when it comes to success or failure of a
Up until that time, Pepsi had steadily gained ground on Coke’s market advantage. Coke had been seen as somewhat mello. Some even referred to Coke as a “Grandma Drink.” Pepsi used this public viewpoint to their advantage, marketing Pepsi as “The Choice of a New Generation.” This led to a highly competitive marketing and advertising fight in the 1980’s, known as “The Cola Wars.”
The beverage industry is highly competitive and presents many alternative products to satisfy a need from within. The principal areas of competition are in pricing, packaging, product innovation, the development of new products and flavours as well as promotional and marketing strategies. Companies can be grouped into two categories: global operations such as PepsiCo, Coca-Cola Company, Monster Beverage Corp. and Red Bull and regional operations such as Ro...
Back in 1995, Pepsi aimed to add new energy into their commercials. The advertisement industry was being slammed and overwhelmed by competition from smaller upstarts like Yoohoo chocolate milk. The new creativity shown by Coca-Cola wasn’t helpful either. Pepsi-Cola decided
5967470 Dibb, Simkin, Pride & Ferrell, MARKETING: CONCEPTS AND STRATEGIES, 4th Edition, n.d http://users.wbs.warwick.ac.uk/dibb_simkin/student/glossary/ch16.html Fowles, Jill, 1996, ‘Deciphering advertisements’, in Advertising and popular culture, London, Sage, pages 167-183 Maitland, Iain, 1998, The Small Business Marketing Handbook, Cassell, New York Korolishin, Jennifer, 2005, ‘2005 Beverage advertising preview’, Beverage Industry, Jan2005, Vol. 96 Issue 1, p38, 1p, 1c http://search.epnet.com/login.aspx?direct=true&db=buh&an=12620480 PEPSI, ‘ADS & HISTORY – Highlights’, in PEPSI WORLD, 2005 http://www.pepsi.com/help/faqs/faq.php?category=ads_adn_history&page=highlights --------------------------------------------------------------------- [1] BBDO is Pepsi’s longtime advertising agency.
In order for PepsiCo to be successful in selling Pepsi Platinum, the company must research the marketing community. The best way to create a strategic marketing plan is to understand the target market in the beverage and sports drink business. PepsiCo must ask, “What is the demographic of this market, what are psychographics and behaviors of the specific market that PepsiCo, in regards of selling this brand, desires to reach?” Understanding our customer needs, and competitors offerings will help PepsiCo create a strategically integrated marketing plan. The principal to any successful marketing strategy is to understand the customers and their needs. The ability to satisfy customers' needs better than the competitors, will first be, that PepsiCo build customer loyalty and increase sales (Business Link, 2007). Marketing research uses many methods to obtain its results. PepsiCo will use external census data and marketing survey data collected by outside marketing research firms, as a method of understanding customer wants and needs. Computer-aided methodologies will also be used to collect data on the competitors of PepsiCo such as Coca Cola, Jones Soda, and Mo...
Pepsi Company (PepsiCo) owns many brands of beverages, snacks and other foods. Its major product, Pepsi Cola, is one of the most popular carbonated beverages. Besides that, PepsiCo owns the brands Quaker Oats, Gatorade, Frito-Lay, Tropicana, Mountain Dew, Naked, Mirinda and SoBe. In order to maintain, or preferable expand, its market share, PepsiCo constantly introduced new products under its brands. This is a marketing strategy known as Product Development. By modifying the formulas and ingredients, PepsiCo had invented and marketed more than 50 types of carbonated beverages under the brand of Pepsi. To name a few, Pepsi Free introduced in 1982, Pepsi AM introduced in 1989, Pepsi Tropical introduced in 1994, Pepsi Blue introduced in 2003, Pepsi Edge introduce in 2004, Pepsi Lime introduced in 2005, and Pepsi Ice introduced in 2007. Some of the products survive and being accepted by consumers, however large number of the new formula Pepsi had failed and been removed from the market shelves in as short as 6 months.
During the 1990s, PepsiCo launched new products and engineered a global re-branding campaign in an effort to grow sales volume; reinvigorate their stagnant brand; and to close the increasingly large sales and market share gap between itself and its primary competitor, Coca-Cola. In 1993, Pepsi jump-started its marketing efforts by adding two brands to its portfolio: Crystal Pepsi and Pepsi Max. Crystal Pepsi, which was initially offered in the United States, failed to earn the company more than 2 percent volume share. Pepsi Max, which was launched in the United Kingdom, proved more successful, but because one of its primary ingredients was an artificial sweetener not yet approved by the Food and Drug Administration, it wasn't brought to market in the United States.
The strategic formulation and planning phase is of great importance. This current event blog describes why the strategic formulation and planning phase is important and discusses a major strategic effort in a particular company; that is, Coca-Cola Company. The reason for the strategic effort, which was a global marketing campaign, is discussed. Lastly, the strategic planning lessons that would be learned from the Coca-Cola 's strategic marketing campaigns are described.
to fight in the center of the arena, but have a sudden change of mind