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Marketing Plan and Distribution Orientations of Pepsi
Transcript of Marketing Plan and Distribution Orientations of Pepsi
Analyzing the Marketing Environment
PepsiCo is a world leader in convenient foods and beverages, with revenues of about $27 billion and over 143,000 employees. Many of PepsiCo's brand names are over 100-years-old, but the corporation is relatively young. PepsiCo was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay.
Product differentiation comes into play for sure in the case of Pepsi. When looking at Pepsi, people think of soda.
Pepsi distribute their drinks through independent bottlers. Canady Dry is strong within local grocery stores, but why they are not present in vending machines like Pepsi is.
Creating a strong and distinctive image requires creativity and hard work. Symbols, signs, logos and color are used to create strong-company or brand recognition and image differentiation.
Capturing Customer Value using 4ps
Abdul monem sugar refinery ltd, igloo bottlers grade sugar. Tanvirs’(pepsi cola cans speaker), Partex Plastics Ltd. (plastic closures).
Akin Enterprise, Bangladesh. ANSii Computers.
Pepsi customers are mostly young group between the ages of 14 to 30.
Coca Cola, RC Cola, Red Bull etc are the competitors of Pepsi.
Distribution Channel of Pepsi
Integrated Marketing Communications
Pepsi uses the intermediaries or the process through which Pepsi is transferred from the producer to the ultimate users. There are a lot of intermediaries between Pepsi producers and consumers. Some intermediaries like wholesalers and retailers buy and resale the product. They are known as merchant middle men.
Every newspaper and magazine carries Pepsi advertisements
They have giveaways in stores and coupon advertisement in newspapers.
press releases have been imposed so as to make the product more appealing to the target market .
- In every occasion Pepsi brings special offers. Like, they reduce the price; give extra quantity of drinks in the same price.
For publicity Pepsi use social media such as Face Book, youtube etc.
Pepsi uses its direct marketing to distribute their product through PIZZA HUT, KFC etc
Pepsi is a well-established co., so it has a good reputation in the market.
Advertising of Pepsi is much more aggressive than Coke.
Backed by huge promotion at national & international level.
Non-fulfillment of commitments on time, made to shopkeepers.
Incompetent salesman who do not give the schemes in the market regularly.
Not proper control over distribution network.
May tie up or liaison with major showrooms, computer centers & restaurant.
Huge publicity of Lemon Miranda /Slice has created a lot of demand.
Threat of competitors new brand entry in the market in near future.
Restrictions made by Govt. agencies that soft drinks are harmful & non-nutritive.
Natural juice are now available whose price are less or same as soft drinks
Marketing Plan and Distribution Orientations of Pepsi
Pepsi in Bangladesh
Transcom Beverage Ltd (TBL) is the exclusive PepsiCo Franchisee for Bangladesh. TBL owns and operates modern plants in Dhaka and Chittagong for bottling the renowned soft drink brands such as, Pepsi, 7UP, Mirinda, Slice, Mountain Dew, Pepsi Diet and 7UP Light.In 2009 winning several spectacular awards as PepsiCo's exclusive bottling partner in Bangladesh
A product (in Pepsi's case, a popular soda drink with cola flavoring) must appeal to the marketplace and deliver taste to consumers.
The second element, price, is all about offering a product for an appealing price - one that still allows PepsiCo to make a tidy profit from the sale of their drinks.
Drinks may be sold in mass chain stores, such as Wal-Mart, and in an array of other retail stores, such as drug stores, grocery stores, and corner stores or bodegas.
Promotion includes the marketing and advertising of a product. In the case of Pepsi, marketing is international and takes place in every form of mass media - including television ads, print ads, and online marketing
Selecting Customers to serve
Marketing Management Orientation
They always more focus more on quantity but less focus on quality. They produce a huge amount of product, So that the cost of the production decreases.
Pepsi follows marketing concept. They always highlight their target markets needs and make sure that the product is available and highly affordable for them.
1. Micro environment
The company -
PepsiCo is the company which produces Pepsi.
2. Macro environment
Geographic segmentation means dividing the market into different geographical units such as nations, regions, states, countries, cities or even neighborhood. Pepsi has put little emphasis to segment their market geographically. They are doing business almost in maximum places around the world.
These terms adopted in Pepsi’s advertising campaigns are what marketers refer to as Generation X, which are profiled to be between the ages of 18 to 29. In addition, Pepsi shifted its focus to the growing.
Psychographic segmentation divides buyers into different groups based on social class, lifestyle or personality characteristics. Their beverages are very much focusing towards lower and upper middle class as they can afford to drink Pepsi.
Behavioral segmentation divides buyers into groups based on their knowledge, attitudes, uses or responses to a product.They offer in every special occasions, for the people who seek for benefits off their products, to their loyal customer base. Occasional cases like religious festivals; special days like mothers’ day, valentine’s day, friendship day, any individual’s birthday or marriage ceremony or anniversary.
Pepsi Co follows an intensive distribution strategy to distribute Pepsi. To support their universal feature they want to place their product in as many outlets as possible.
Direct Distribution System-
Pizza hut ,Kfc
Indirect Distribution System
Since there are older people and Pepsi has been traditionally a young people’s drink, Pepsi will have to stimulate consumption by older members of society.
Pepsi uses Plastic bottles and cans which can be harmful for society. So Pepsi should be produced more in recyclable bottle.
Need to improve PR activities in urban areas.
In our country, with brand name people prefer Pepsi 23% but without brand name it is 51%. So need to improve its brand value.
Should increase promotion strategy to introduce new product line like Pepsi next, Pepsi zero etc.
Pepsi has been successful in generating profits in this extremely rivalries industry. What the company should do now is employ a strategy that now only addresses its own deficiencies in an effort to grow market share, but one that will increase the overall size of the pie. This strategy, in the end, will allow Pepsi to grow and sustain above-average returns.