Pepsi Elements of Marketing
Introduction
PepsiCo is the second largest nation wide food and beverage industry in the world. This company has twenty-two brand names that collectively bring in billions of annually funding from retails. Their main focus is to produce pleasingly food and beverage within the company that are valued to household names throughout the world. The marketing strategy and mix both are connected to target marketing focusing on the company needs and wants in a large group setting. According to Young’s study, “PepsiCo’s marketing mix has evolved over time, especially because of the effects of mergers and acquisitions. The marketing mix or 4Ps is the combination of strategies and tactics that the firm uses to implement
…show more content…
It remains valuable and internationally successful in this portion. The element of Pepsi marketing strategy is to stop buyers from purchasing their products when it is only on sale. The marketing mixes identify the products that are offered to consumers. Advertising helps the company gain more consumers and money; such as using celebrities as a marketing target and endorsing them with an agreeable salary to continue to advertise their products. Pepsi promotes their sales by present packages deals and discounts to different stores are another mix marketing strategy. Direct marketing is another strategy that Pepsi uses their products as wholesale prices for different venues to introduce new foodstuffs. Public relations are vital using sports events in this company help provides economic support and sponsorships. These four elements of mix marketing stipulates that advertising, promoting, direct marketing and public relations are the main focus for this corporation to correspond with targeting consumers and endorse their …show more content…
However, these brand products focus on the younger generation rather than the older generation. Promoting high protein nutritional energy products brings attention to younger adults. Endorsing the most popular celebrities to promote their business helps the profits of their products. Pepsi offers more brand names product other than Coco-cola. The companies marketing strategy are targeting the right generation, but their main focal point is persuading consumers to purchase their products
The 4 Ps of the marketing mix are: Product, Promotion, Price, and Place. The marketing mix puts the right products, at the right price point, in the right place, at the right time. The following examines how Claire’s Chocolates optimizes its marketing mix (Yoo, Donthu, & Lee, 2000, 195-196).
focus more on the fun-for-you, major brands: ignore the other two segments, and focus on PepsiCo’s core products. The issue is that it may seem as though PepsiCo is going back on their word and Nooyi’s strategy. As well, PepsiCo might be seen as unethical for pushing their high-sugar, high-calorie drinks and junk food, while Americans and those of other nationalities are facing higher and higher levels of obesity.
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
According to Jobber et al (1998) the marketing mix is ` the tactical `toolkit' of product, place/distribution, promotion and price that an organisation can control in order to facilitate satisfying exchange'. The following is Sainsbury's current marketing mix strategy.
The marketing mix, which is basic to any organization, can be considered the ‘controllable’ variables that every business encounters. These controllable variables can be modified based on the uncontrollable variables (external factors found in Environmental Scan) that directly affect business operations. A company focuses on four elements in the marketing mix: Product, Price, Place, and Promotion, which are managed and coordinated through marketing programs in efforts to appeal to their target market. Marketers strive to understand what motivates consumers to purchase certain products. The marketing mix helps to break down some of these questions: What will consumers buy? How much will they spend? Where will they buy? And will they buy again?
The marketing mix refers to the set of actions, or tactics, that a company uses to promote its brand of products in the market. Price, Product, Promotion and Place, are known as the 4Ps that make up a typical marketing mix. As marketing evolves, there are additional Ps that can also be included in the marketing mix, however, focusing on the 4 core Ps of the marketing mix, price, place, promotion and Product, taking an in-depth look at the aspects of Victoria’s Secret in general and in terms of the selected product. All the elements of the marketing mix influence each other. They contribute to the business plan for a company and if managed correctly, can give it a great success. In order to successfully master marketing mix, it needs understanding,
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.
As we all should know, PepsiCo is one of the world’s leader in convenient food and beverages. PepsiCo shares are traded worldwide and particularly in NYSE (United States). PepsiCo is in the same line with Coca cola and Cadbury Schweppes as the dominating beverage companies. PepsiCo has successfully built a great brand name rivaling with coca cola, probably because PepsiCo unlike coca cola has its own bottling companies. With a competitive strategy based on differentiation rather than cost leadership like its fellow competitors PepsiCo invests highly in new packaging, flavors, formulas to outsmart their competition. Founded in 1919, producing a variety of sweet and grain-based snacks, carbonated and non-carbonated
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.
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 marketing mix is important to the sport industry because it allows a sport marketer to better understand the market they are selling in, and enables a sport marketer to generate an increase in revenue. The marketing mix contains the four p’s, which include: product, price, place and promotion. Each of the p’s in the marketing mix are all vitally important because they are what you are selling, why you are selling, where you sell it at, and how you promote what a sport marketer is selling. The marketing mix is essential to the sports industry because it enables a sport marketer to better understand their product, and improve sales.
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
In all reality, all businesses will, in some way shape or form, complete all of the marketing activities, even if completing these activities is not their main goal. (Dlabay 2006.) These marketing activities are product, place, price, and promotion. A business tool called that marketing mix takes all of these activities and puts them together in a way that can be used to help improve a business’s marketing strategy. Product is what the company is selling; Place is where the consumer will obtain this product; Price is what the consumer will pay for the product; Promotion is any type of communication that is intended to remind, inform, or persuade. (Dlabay 2006.) The marketing mix and the four P’s describe very well what business marketing is all about.
Thanks to my fascination with PepsiCo and partly because this is an assignment, I went online and search for some of PepsiCo’s most successful and ongoing marketing campaigns and strategies. During my research I noticed several daring marketing strategies Pepsi employed throughout the years. For example, gaining the support of Michael Jackson in the 1980’s and latest gaining the endorsement of global pop star Beyoncé.
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