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Marketing plan for soft drink company
Industry analysis: soft drinks
Industry analysis: soft drinks
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Empire is an American movie drama television show based in New York centering on hip hop music and Entertainment Company. The movie was launched by Fox on January 7, 2015. PepsiCo brand is a major brand featured in the plot of the story. The show would prepare viewers for commercials that served as the extension of the show. Pepsi is a carbonated soft drink produced and manufactured by PepsiCo. For instance on December 3, 2015, Pepsi aired one of the commercial starring empire characters, Jamal as part of the unique product integration hit show (Dann, 2005). Pepsi was written in a three-episode story line where he lands on an endorsement deal with the beverage giant.
Question 2
Pepsi is a convenience product being a soft drink, it is relatively an inexpensive product and does require much shopping effort; consumer buys this product regularly without much need for planning. However this does not mean that the consumer has no preference for brand, consumers are aware of their favorable brand. There is a need for wide distribution to reach all their customers. Pepsi may not fit to be a shopping product since it is not only found in fewer stores though sometimes the consumers
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At average there were 21.2 million total viewers of which 4.8 were nonlinear. PepsiCo has very strong brand equity in America and other countries in the world; it is well known and has attained a good relationship with their loyal customers. Empire increased PepsiCo brand equity by it being a favorite to most Americans (Withalm, 2007). In fact Emily Silver, VP-marketing for PepsiCo North America Beverages noted that the Empire integration was a new terrain for PepsiCo brand. She also noted that it was a breakthrough for the industry as it attracted all demographics and remained one of the most watched series in
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’...
Pepsi by all means, will not hesitate to when promoting their products and in fact, Pepsi has been spending over one billion dollars on advertisements, gaining thirty-four millions Facebook likes and two million Twitter followers (O’Brien. "Coca Cola vs. Pepsi: Comparing Sales, Earnings & More"). They also sponsor some of the famous American sports for instance, NFL (national football league), the NHL (national hockey league), and just recently, they have also replaced Coke, as a NBA sponsor (national basketball league) who was a major sponsor for two years in a row (Alesci, Rooney). Pepsi has a huge impact of today's generation and will not balk at anything to come to the
The soft drink industry in the United States is a highly profitably, but competitive market. In 2000 alone, consumers on average drank 53 gallons of soft drinks per person a year. There are three major companies that hold the majority of sales in the carbonated soft drink industry in the United States. They are the Coca Cola Company with 44.1% market share, followed by The Pepsi-Cola Company with 31.4% market share, and Dr. Pepper/Seven Up, Inc. with 14.7% market share. Each company respectively has numerous brands that it sales. These top brands account for almost 73% of soft drink sales in the United States. Dr. Pepper/Seven Up, Inc. owns two of the top ten brands sold. Colas are the dominant flavor in the U.S carbonated soft drink industry; however, popularity for flavored soft drinks has grown in recent years. The changing demographics of the U.S population have been an important factor in the growing popularity of these flavored soft drinks. The possible impact of this factor will be addressed later in the case.
Bottling Network: Both Coke and PepsiCo have franchisee agreements with their existing bottler’s who have rights in a certain geographic area in perpetuity. These agreements prohibit bottler’s from taking on new competing brands for similar products. Also with the recent consolidation among the bottler’s and the backward integration with both Coke and Pepsi buying significant percent of bottling companies, it is very difficult for a firm entering to find bottler’s willing to distribute their product.
PepsiCo PepsiCo is one of the foremost food and beverage companies in the world and sells its products of Pepsi, Frito Lay, Tropicana, Quaker, and Gatorade in more than 200 countries and territories worldwide (PepsiCo, 2014). With the large size of PepsiCo and the substantial volume of products produced and sold around the world, having a swift, seamless, integrated, and cost effective supply chain is essential to the well being of the company. The mission of PepsiCo is to grow its business into a world-class food and beverage company while providing growth to its employees and financial rewards to its investors (PepsiCo, 2014). The supply chain for PepsiCo is an integral piece of the company that needs to run flawlessly in order for PepsiCo to attain its mission. The Supply Chain There are many steps in the supply chain for PepsiCo and a few include attaining the raw goods necessary for production, storage of raw goods, and storage of its finished products.
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.
PepsiCo is a large global company that has many strengths and advantages. One of Its main strengths is that its product range is diverse; this means that it doesn’t rely on a few key products or seasonal sales and isn’t significantly affected by changes in customer tastes. PepsiCo also has an extensive distribution channel serving over 10 million stores a week I over 200 countries. (Strategicmanagementinsight.com.) One of the reasons why PepsiCo’s growth has been so successful is its approach to merging and acquisitions of beverage, bottling and snack companies. These merges have lead to the company not having to rely on the sales of a particular brand or product and mean that the company has 22 brands that contribute to its income. PepsiCo spent over $2 billion on advertising in 2012 this lead to an increase in their market share and their competitiveness. (http://www.pepsico.com) The firm also recognizes its role in society and gets very involved in charity work that has to do with education, recycling, water usage reduction, obesity fighting and other projects. This is done through its very own foundation, which increases the awareness of its brands name and customer loyalty.
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.
...e and Pepsi’s already established image as producers of premium product is key to discouraging other companies from entering the soft drink industry. However, as the market in the U.S has leveled off, they should continue to invest globally in marketing and advertising for further profit growth, which will in turn positively influence their well established brands to further increase soft drink sales and profits.
The A-Team has introduced a new product called Pepsi Platinum for the company, PepsiCo, in Phase Two. This dissertation will identify segmentation criteria that will impact PepsiCo target market selection. This dissertation will describe the organizational buyers and consumers of Pepsi Platinum and factors that influence their purchasing decisions and discuss how these factors will impact PepsiCo’s marketing strategy. Finally, this phase shall analyze current competitors and define the competitive landscape for Pepsi Platinum.
Place: PepsiCo uses a global network for distributing its products to consumers. Most PepsiCo products are available at retailers, such as supermarkets, grocery stores, and convenience stores. However, customers can access PepsiCo-licensed merchandise like tumblers and t-shirts through retailers and their websites. Based on this element of the marketing mix, PepsiCo’s places for distributing its products are mostly non-online
... it’s a buyer’s market, therefore instead on focus on push advertising and trying to compile prospective customers to buy their product, Pepsi is trying to make Pepsi a part of the consumers life so, whether consciously or unconsciously, if a customer goes out to buy soda the first thing that comes to his/her mind, is Pepsi. I find this especially intriguing, because as an aspiring entrepreneur I hope to one day market my products with the same if not better technics as Pepsi.
Pepsi was introduced in 1893 by Caleb Bradham as “Brads Drink” which then was renamed to “Pepsi Cola” in 1898. There wasn’t many options for advertising in this era due television not being introduced into households till the late 1900’s. One of the first Pepsi Cola advertisements was a black and while flyer that had a few characters laughing and read “Whoope!!! Zoom!! Drink Pepsi-Cola” at an advertisement from Pepsi, the have bright blue, red, and white colors that pop and are eye catching. Comparing this ad with a current ad and modern technology, you can see that Pepsi’s marketing and advertising techniques have come a long way. Reviewing a recent Pepsi advertisement, you can see that they have made groundbreaking changes to their branding techniques. First I will I will note that their choices in colors (red, blue, and white) for their brand are not only eye popping, but in a way symbolize the colors of America. I am not sure if this was their intent but it sure does standout. Next, there slogan in the ad states “Help Kick Off The Pepsi Super Bowl Halftime Show”, this ad targets a very large group people because its directly relating to one of the biggest sports event which is Super
PepsiCo's mission listed on their website said as follows: "Our mission is to be the world's premier consumer products company focused on convient foods and beverages. We seek to produce finanical rewards to investors, business partners, and communities in which we operate. And in everything we do, we strive for honesty, fairness, and intergrity." Their mission is done through programs with environmental care, activities that aid the society, and a commitment to build shareholder value. PepsiCo puts significant emphasis on shareholders throughout all aspects of the company.
In terms of promotional activities, the advertising and giving away of free offers and vacations by Coca cola and Basmati rice by Pepsi, the coca cola’s goal in connecting the youth to the market, the different promotional TV campaigns in India using of celebrities, and the Pepsi sponsorship of cricket and soccer sports. In terms of pricing policies, Pepsi got a quicker market share by their belligerent pricing policies and coca cola’s 15-25% price cut down in the market. In terms of distribution arrangement, the bottling and packaging of products for better distribution around