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Principles of Marketing Group Project 2013

PepsiCo Inc.

Scott McDonough

on 9 May 2013

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Transcript of Principles of Marketing Group Project 2013

Direct-Store-Delivery Consumption Production Distribution Product New Product Pepsi products are brought to market through direct-store-delivery (DSD), customer warehouse and food service and vending distribution networks. The distribution system used depends on customer needs, product characteristics and local trade practices. Pepsi Distribution Network Product--Create more products that can be considered healthy alternatives to customers.
People these days are looking for ways to stay healthy and eat better.
Unhealthy food(s) and beverages are becoming less profitable.
PepsiCo could increase their share in a weak market via:
Existing Products
New Brands
Price--Keep prices low and product value high.
PepsiCo operates in highly competitive markets.
PepsiCo and its associated brands would be able to maintain positive brand identities, images, and reputations.
More people will have incentive to buy more PepsiCo products if prices remain cheap, competitive and consumer-friendly.
Gatorade Chews should remain at current retail price range of $1.00-$2.30

Place--Increase focus on international markets.
High demand for American brands and products abroad.
Pepsico has a global presence but mostly emphasizes their US markets.
PepsiCo would not be less sensitive to market fluctuations in the US.
PepsiCo could increase product diversification as well as revenue.

Providing value to customers and consumers through market-friendly sizing and functionality.
Maintaining optimal product prices through adjustments in product configurations, margins, and price gaps.
Extending brand availability and awareness in foreign markets.
Using different pricing models to reach new consumers.
Cross-marketing and promotion of brand portfolio.

PepsiCo Inc.
Offer Quality Products at Low Prices that Adapt to Local Customs and Appeal to Local Tastes! Recommendations
Some of Pepsi’s products are delivered from manufacturing plants and warehouses to customer warehouses and retail stores. These less costly systems generally work best for products that are less fragile and perishable, have lower turnover, and are less likely to be impulse purchases. Customer Warehouse Penetration Pricing PepsiCo Inc. Brands PepsiCo Inc. is a global food and beverage company. PepsiCo Inc. PepsiCo is a household name brand. PepsiCo Inc. is internationally recognized, not only for its Pepsi beverage products, but also for its diverse product line of 22 brands. A few major products that are created by Pepsi are Gatorade, Tropicana, and Quaker. Each brand has a large product mix with much variety. Each product line and product mix is priced low and reasonably for the average working/middle class family. The low prices of these products make Pepsi products more preferable over other brands. A few major products that are reasonably priced are: Price Resources Scott McDonough
Larry Ennels
Alexis Flowers
Salleia Johnson
Breanna Hebb PepsiCo Inc. PepsiCo Americas Foods (PAF)
Frito-Lay North America (FLNA)
Quaker Foods North America (QFNA)
Latin American food and snack businesses (LAF)
PepsiCo Americas Beverages (PAB)
North and Latin American beverage businesses
PepsiCo Europe
Food, beverage, and snack businesses in Europe
PepsiCo Asia, Middle East, and Africa (AMEA)
Food, beverage, and snack businesses in AMEA Gatorade Energy Chews The media use of the company was PERFECT! Pepsi used every angle with this commercial. Over 108 million Americans watched the Baltimore Ravens beat the San Francisco 49ers 34-31 in Super Bowl XLVII. Also, condensing the performance into a commercial.

Public relations included a sweepstakes for Beyoncé fans to win a once-in-a-lifetime chance to join the singer on stage at her upcoming Super Bowl XLVII halftime show. Pepsi announced a contest in which fans can upload photos of themselves doing some of Beyoncé’s signature dance moves. Promotion Super Bowl XLVII Pepsi Presents: Beyoncé Half-Time Performance “Beyoncé Grown Women Commercial” Pepsi is paying Beyoncé $50 million dollars to be the Face of Pepsi products. According to a Pepsi Co. press release. the new commercial and subsequently the song, will be released in 70 countries, and seen by over 1 billion people worldwide. Pepsi, the bottlers, and the distributors operate DSD systems that deliver snacks and beverages directly to retail stores. The employees or bottlers then merchandise the products. DSD enables us to merchandise with maximum visibility and appeal. DSD is well suited to products that are restocked often and respond to in-store promotion and merchandising. Pepsi’s food service and vending sales force distributes snacks, foods and beverages to third-party food service and vending distributors and operators. The food service and vending sales force also distributes certain beverages through our bottlers. This distribution system supplies our products to schools, businesses, stadiums, restaurants and similar locations. Food Service and Vending
1. Gatorade Energy Chews ($2.29)

2. Tropicana 10 oz. Orange Juice ($1.33)

3. Quaker Chewy Granola Bars ($3.98) Pepsi charges relatively low prices for Gatorade products including Gatorade Chews in price sensitive markets. Pepsi uses penetration pricing because it is a marketing strategy that tends to discourage competition through reasonable and low prices. Penetration pricing is a way to reach the mass market. Gatorade is the preferred sports beverage of many athletes and young adults, so the low pricing appeals to more customers.

The price of Gatorade Energy Chews price has increased only by a small amount over the past three years. The price did not increase drastically because the company still wanted to appeal to young adults and teenagers. Gatorade Energy Chews are not sold in other countries. Gatorade Gatorade is a brand of sports-themed beverage and food products, built around its signature line of sports drinks. Gatorade is currently manufactured by PepsiCo Inc. and distributed in over 80 countries. PepsiCo developed in India in 1989 and has expanded to become the country's largest food and beverage business. PepsiCo has an investment of over $1 billion. PepsiCo India has a diverse product line with brands such as Pepsi, Frito-Lay, Kurkure, Tropicana 100%, 7UP, Gatorade, Quaker,Nimbooz, and Aliva. PepsiCo India International Consumer Markets Frito-Lay India sells a bag of Lay's India's Magic Masala Potato Chips 70gram for $6.86 in
In America, the average price is $2.35.
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