Pepsi Marketing Essay

Supermodel, entrepreneur, actress, Cindy Crawford has been promoting the OMEGA brand since 1995. Her striking beauty and international appeal are the perfect complement to OMEGA’s image. Cindy even helped to design a collection dedicated to her: the Constellation My Choice. PEPSI: Today’s PepsiCo, Inc. was found in 1965 through the merger of Pepsi Co and Frito-Lay, the world’s largest manufacturer and distributor of snack chips. In 1998, it acquired Tropicana, the world’s largest marketer and producer of branded juices. In addition to the main body of 3 companies, the Pepsi-Cola Incorporation also owns four well-known fast food restaurants in the world; they are Pizza Hut, Taco Bell, KFC, and Burger King. Furthermore, with its 4 fast food restaurants, PepsiCo Inc. owns 24,000 restaurants, more than McDonald’s 14,000. Based on PepsiCo Incs annual report in year 2000, PepsiCo Inc. has total net sales of 20.438 billion US dollars and they are worth 44 billion dollars in stock value right now. There are several reasons why the world’s second largest soft-drink company, the PepsiCo Inc., is very successful in the world and almost exceed the current market leader in soft drink industry, Coca-Cola. These reasons are taste, investment, management policy, and marketing strategy. In this report, we will put our main focus on marketing strategies and more details analysis, such as 4Ps (product, price, place, promotion), SWOT analysis (strength, weakness, opportunity, threaten), Marketing Environment (economic, technological, cultural, social, and competitor), advertising, and target market, etc. First element of 4Ps is product. With more and more customersãÆ' » unique needs, besides its regular Pepsi, it adds regular caffeine-free Pepsi, Diet Pepsi, Diet Caffeine-free Pepsi, Wild Cherry Pepsi, and Diet Wild Cherry Pepsi into its product lines. Its Diet Pepsi is even the first of its kind in Cola market. For the price, based on the laws of demand and supply, price plays a very important role in customersãÆ' » initial purchase. In addition, psychologically speaking, customersãÆ' » have such mentality to judge a productãÆ' »s quality by its price. Therefore, Pepsi has to determine its price very carefully. If the products are wrongly priced, either damage to its reputation on quality or lost of sale due to high price will be resulted. However, Pepsi seems to do fine at the moment. Based on their corporate pricing policy, providing quality products at lowest possible price has always been one of their main concerns. For example, in some parts of the country, a 2-liter bottle of Pepsi costs 99 cents a decade ago and still does today. As for the place, it has to get the right target market and has to be available when customers need. Pepsi has done a great work on the place, because their channels of distribution certainly provide their products at any market in the American very successfully. Last and the most important element of 4 Ps is promotion. It is so important because how they promote their products will affect how successful their message will be delivered to their target audiences. In 1963, they created a new product policy that is called ï ¼Å¡The Pepsi of new generationï ¼â€º. They focus on customerãÆ' »s needs and wants. Also, they try to make people memorize their product. Lots of soft drink customers do not have so-called royalty toward certain brand. Such issue was well noted by PepsiCo Inc. and decides to change customersãÆ' » buying habit. During that time, ï ¼Å¡The Pepsi of new generationï ¼â€º is a very successful campaign until 1988. After that, they have changed the marketing scheme to ï ¼Å¡The Choice of a New Generationï ¼â€º and still using the same process today. Right now, Pepsi has a special campaign called ï ¼Å¡The Pepsi Challengeï ¼â€º that gets a lot of attention from people and offers a good opportunity for Pepsi to earn more profit. In 1974, this promotion also works very well in Kansas. Advertisement is another promotion; they usually focus on the teenager. From Electric Youth to Generation next, Pepsi has had its finger on the youth pulse of every decade. In their advertisings and target markets, they always use idols to catch teenagersãÆ' » attention. For example, in 1984 to 1999, they use Michael Jackson and Ray Charles etc. to be PepsiãÆ' »s spokespersons. In 2001, they have signed a 100-million-dollars contract with Britney Spears to be PepsiãÆ' »s next spokesperson. The SWOT analysis is another important concept in the marketing. The strength of the Pepsi is his strong, well-recognized brands. Pepsi-Cola owns many of the worldãÆ' »s best-loved consumers brands, especially in North America. According to annual report, the percentage of the total sales volume is 45% in North AmericaãÆ' »s market. For many years, Coca-Cola still has a great position in the American. As a result, if Pepsi-Cola wants to replace the number one position that is a very hard task, and also a big weakness for Pepsi-Cola. Even though PepsiCo has better total sales than Coca Cola (20.4 billion vs. 16.2 billion), however, the market value of the whole company is just about half of Coca Cola (44 billion vs. 93 billion). The main reason is that PepsiCo has its foot into fast food market. Furthermore, the profit margin they make is not even one third of current market leader in fast food industry-McDonald (4% vs. 15%). Pepsi-Cola has launched a campaign called ï ¼Å¡The Pepsi Challengeï ¼â€º that gives Pepsi-Cola a good opportunity, because they might get more customers to accept the products and gain the sales revenue for Pepsi-Cola. Because there are a lot of competitors in the soft-drink industry, these competitors often introduce new tastes from time to time and customers have the tendency of trying new tastes while PepsiCo Inc has limited product lines in soft drink despite the fact that they have already have juices, root bear, ice teas, etc. Needless to say, this is a very big threaten to the Pepsi-Cola. The economic environment can affect Pepsi-Cola very significantly. If we have bad economic situation, people will watch their own packet more carefully and, in turn, the sales revenue is the first thing to suffer. Although such impact might not be very severe to PepsiCo because Cola can be seen as a daily necessity in American, yet, they still have to keep close watch. The 270 million people in America consume about 28 million cases of Pepsi Cola annually. In American culture, and its social environment, Pepsi-Cola doesnãÆ' »t need to have a significant change since Pepsi-Cola is a very traditional favor. As a result, Pepsi-Cola Company should focus on two main things- get peopleãÆ' »s attention and create the ï ¼Å¡Needï ¼â€º. Our technology environment is growing very fast and so does Pepsi-Cola in its technology to operate their products. Pepsi Company always builds their products at highest quality and catches up with the new technology. Pepsi can always be peopleãÆ' »s favorite; because Pepsi Company always adapts whatever new technology is available in the market today. In competitor environment, we know that Pepsi-Cola Company face three main competitors: Coca-Cola, Quaker Oats, and Cadbury Schweppes. As stated by the President of Pepsi ï ¼Å¡in the Cola War, there is never a winner. It is not important whether you win or lose; the more important is that to have fun in the Cola Warï ¼â€º. Although my information might not be sufficient, there are still many different types of information customers could research by themselves. Consumers can also compare information about different or competing  companies more easily because information is literally at their fingertips. Consumers don’t have to deal directly with or influenced by sales people to make their decision of purchases. Companies can also stay in touch with their customers and suppliers by creating web pages and setting up Internet addresses to receive e-mail from customers worldwide. Basic Marketing: A Global-Managerial Approach, 13th edition Irwin McGraw-Hill, 1999 Gornstein, Leslie. â€Å"On-line Marketers Targeting Kids.† San Diego Union-Tribune, July 2, 1996, Page 4. Pepsi Co. Incorporation Annual Report 1997-1999 Pakistan has a multimillion dollar official contract with Pepsico which entitles the company to put a ‘Pepsi’ logo on all players kits. Each player gets around Rs 1.8 million every year from this deal. In addition, Pepsi is almost always the title sponsor of series held in Pakistan. But it seems that there is nothing in the Pepsi contract that forbids players from promoting another soft drink off the field. All rights are for on-field promotion, which the players have not violated. PEPSI PROMOTES CRICKET†¦.. http://www.pepsi.com/current/index.html http://www.pepsiamericas.com/ http://www.thestreet.com/funds/investing/1396149.html http://www.hoovers.com/co/capsule/9/0,2163,55869,00.html http://garden.2118.com.cn/cnfoods/big5/sale/PACKAGING –Back to Top– Providing our consumers with easy-to-use, convenient and innovative containers is one of our top priorities. Package introductions we’ve made over the years include the industry’s first two-liter bottle; the first company to respond to consumer preference with lightweight, recyclable, plastic bottles; The Cube, an easy-to-store 24-pack; Big Slam, the wide-mouth one-liter bottle; as well as our three-liter bottle, designed to provide consumers with extra value (not all products and packaging is available in all markets). Our local bottlers, many of which are privately owned, franchise operations,  make all packaging decisions. Most of our bottlers are following the industry-wide trend to use plastic packaging due to environmental considerations. The industry is now making greater use of fully recyclable aluminum cans and PET plastic bottles. More information on Pepsi-Cola’s environmental commitment, including its packaging initiatives, can be found here. The â€Å"CUBE† is Pepsi’s new innovative 24-can multipack. It was dubbed the â€Å"CUBE† by consumer focus groups, which are a small test market population that’s invited by Pepsi-Cola to give the company feedback before the introduction of a new package or product. The consumer focus groups Pepsi used for this product coined the name the â€Å"CUBE† and it stuck! Polyethylene terephthalate, or â€Å"PET plastic,† is a form of polyester used to make strong, lightweight, shatter-resistant bottles for soft drinks, water, juice and other non-food products. Bottles made from PET plastic, which are marked with the number one code on the or near the bottle of the bottle, are recyclable into products including new containers, fiberfill for sleeping bags and coats, fabric, carpet, auto parts, film and more. 2.htm omega: The World of Omega is defined by high-profile watches on display in the most select show-windows in more than 130 countries around the globe. Fine timepieces worn by outstanding â€Å"ambassadors† like Cindy Crawford, Pierce Brosnan, Michael Schumacher and Martina Hingis†¦ Leaders in their fields who express the spirit of the brand through their faces, their words and their actions, reflecting all the elegance, sophistication and achievement behind every Omega watch. â€Å"Constellation† A star on the wrist of the stars. â€Å"The Constellation is consistent with my image†, says Omega spokesperson Cindy Crawford. â€Å"My Constellation has three qualities I admire: precision, elegance, reliability. And for someone who travels as often as I do, it’s an essential and beautiful fashion accessory†. In space, with the â€Å"Speedmaster Professional†, the only watch worn on the Moon and winner of NASA’s Snoopy Award for helping to save the Apollo 13 mission astronauts; Omega Cindy Crawford Model:1465.71 Gender/Size:Mini List price:$2,595.00 Stainless steel case(22.5mm) and bracelet, Mother-of-pearl dial with silver pyramid markers, diamond bezel with 30 diamonds totalling .42 karats in diamonds (G-H color, VVS clarity), diamonds in bezel set in 18kt white gold, Swiss quartz movement, water resistant to 30m. Comes in beautiful gift package. SHOW STOPPER! Coupons not valid on this model. Conclusion At the start of this review, I mentioned the fact that I have recently started to look more at the value for money end of the market, or if you will, lower priced end of the market. Having worn the Zeno for a few months I have to say that I suspect that there are some pleasant surprises for those who don’t want to spend a fortune on a watch but want something that is different, rugged, water resistant, reliable but mechanical. The Zeno confirms my theory that a good watch needn’t be expensive. It has been accurate, reliable, I have worn it everywhere and many people have asked me if it was new old stock from the 1960s! So, yes, I do recommend the Zeno but are there any downsides.? Not really given the price tag of this watch. It is personal preference as to whether one likes the looks or not. Personally it is different but classic to my eyes; I like the design. Not forgetting that Zeno make a large range of watches of the rugged variety, both mechanical and q uartz and they would all appear to offer good value for money. I might buy more!! Thanks for reading this; I hope you enjoyed it and please bear in mind that all the contents are just my opinion based on my experiences. My watch was obtained from a very affable and helpful UK Zeno dealer who’s site is worth visiting to see more examples of the range, web address below: Omega Watches Omega’s commitment to quality watch making spans 150 years and dates back to its beginnings in Switzerland as one of the first watch companies established there. Omega watches are fit for royalty and feature the highest quality components, precious metals, and technology within every watch that they manufacture. With celebrity  endorsements from Pierce Brosnan, Cindy Crawford, and Ernie Els, Omega has established itself as one of the most popular luxury watch brands around the world. The original symbol of perfection and quality, the Greek letter Omega, represents all that the Omega watch company strives to be. For over 150 years, the team at Omega watches has created timepieces of extreme perfection and are proud to participate in some of the world’s most historic and precisely timed moments. After all, if NASA and Formula 1 rely on Omega watches to keep track of their time, why shouldn’t you?