PEPSI: PROMOTING NOTHING
PRESENTED BY:
GROUP- 2
Keyur Savalia
Bharat Maheshwari
Krishna Rajput
Dipa Shah
Nikita Sanghvi
Mitesh Shah
COMPETING COMPANIES
 Pepsi
Cola and Coca-Cola have been competing with
each other for many years through numerous taste
tests and television ads.
 One of the ideas they came up with is water. In the
early 1990s Evian and Perrier were the brands that
dominated the niche and helped establish bottled
spring water’s clean, healthy image.
 Pepsi first tried to attack this market with bottled and
sparkling water but failed. In 1994, Pepsi had the idea
of using its bottlers to filter local tap water and
offering the resulting product under the name of
Aquafina.
BACKGROUND INFORMATION
They experimented with a reverse osmosis process pushing
already filtered tap water at high pressure through fiberglass
membranes to remove even the tiniest particles.
 This process created a water with no taste or odor. In addition,
because the process used tap water it was inexpensive and
would compete well on price with the other spring waters in the
market.
 Pepsi wanted to target everyone with a unisex, mainstream
water at an everyday price.

COMPETITORS CASH IN…
 By
1999, the bottled water market had
boomed and competitors such as Coca-Cola
decided it was time to join the market.
Similar to Pepsi they launched Dasani.
 Dasani was a bottled water filtered locally by
its bottlers but with certain salts and minerals
added to give it a fresh, clean taste. Having
the same motives as Pepsi, Dasani was
content just to build distribution and not
promote water.
WATER WARS
By 2001, the category was on the way to becoming the
2nd largest beverage category.
 By 2004 both companies decided they needed to promote
their waters. This resulted in a new front called the
“Water Wars”.

1. What markets should Pepsi target for Aquafina?
THEORETICAL FRAMEWORK
Demographic

Age - >12years

Income - >INR 20,000

Generation - Generation Y
Psychographic

Personality – Sincere, Competent, Sophisticated

Life Style – Health Conscious, Hygiene Sensitive
Behavioral

Loyalty Status – Shifting loyal

Readiness Stage – Informed/interested

Attitude towards product - Positive
CASE DATA & THEORATICAL
FRAMEWORK
 Pepsi
on contrast to Evian wanted to target
everyone with a unisex product at an everyday
price.
 They position the product as having “nothing”!
Pepsi is referring to how the product has no
added minerals or anything and that it is pure.
POSSIBLE TARGET OPTIONS
Pepsi could narrow the targeting even more, it could target the
20-35 aged, active, on-the-go, health-conscious woman.
 For teenagers drinking too many soft drinks, it could position
the drink as a substitute for soft drinks. This would be
problematic for Pepsi but could be a complementary
alternative.
 Another option would be to target the 20-35 year old, active,
health-conscious man who is on the go.
 Rather than promoting as a sports drink It could position
simply as pure water for people where good water was not
readily available.

2. What advertising objectives should Pepsi set for
Aquafina?
THEORETICAL FRAMEWORK

OBJECTIVE - PERSUASIVE ADVERTISING

Building brand preference
Encouraging switching to the brand
Persuading customers to purchase now
Convincing customers to tell others about the brand



CASE DATA & THEORATICAL
FRAMEWORK

The focus for advertising objectives should be on persuading or on
building selective demand.

Persuasive advertising includes persuading customers to purchase now,
to receive a sales call, and convincing customers to tell others about the
brand.

The first step in creating effective advertising messages is to decide
what general message the company wants to communicate to
consumers.

This flows from the positioning statement stressing the idea that the
positioning statement guides development of the marketing mix.

Company can also print a logo of Pepsi on the label of Aquafina.
3. What message strategy and message execution
recommendations would you make for Aquafina?
THEORETICAL FRAMEWORK

MESSAGE STRATEGY


Customer benefit appeal
Distincitive & believable

MESSAGE EXECUTION

Slice of life

Lifestyle

Mood or image – purity

Musical – sound of water droplets, waterfall

Personality symbol

Scientific evidence

Testimonial endorsement
CASE DATA & THEORATICAL FRAMEWORK



Pepsi problem arising because they are positioning the product as
“nothing”.
If Pepsi wanted to target active people who drink water, a core
benefit could be summarized as “Pure water. Wherever you are.” The
stated advertising appeals should be meaningful, believable, and
distinctive.
Pepsi initially used a “slice of life” style in depicting “real” people
drinking Aquafina. If this were the case then selecting lifestyle ads
that depict active people using the product in unusual places is a
good method.
4. What advertising media recommendations would you make
for Aquafina, and how would you evaluate the effectiveness of
those media and your advertising?
THEORETICAL FRAMEWORK




FACTORS TO SELECT ADVERTISING MEDIA
Reach
Frequency
Impact





BASIS FOR MEDIA SELECTION
Target-audience media habits – regular readers or television
watchers
Product characteristics – pure, unisex, mainstream
Message characteristics – commitment to soul and health,
Sincerity
Cost – High absolute cost
CASE DATA & THEORATICAL FRAMEWORK

TYPE OF MEDIA
Television
Health/fitness or travel magazines
Display boards

If the company targets active people





use media that serves various sports and outdoor enthusiasts.
It could develop an special website for Aquafina that offered
information on outdoor activities.
CASE DATA & THEORATICAL FRAMEWORK

The print ads which contain coupons for free or reduced price
Aquafina that consumers could redeem at stores. On the basis of
coupon ID Number Pepsi could determine which print media
contained the coupon.

Promotional offers could also be promoted by Television ads.

All of these steps could help Pepsi measure both communication
effects and the sales effects of the individual media.
5. What sales promotion and public relations
recommendations would you make for Aquafina?
THEORETICAL FRAMEWORK

SALES PROMOTION
Consumer Promotion Tools
Cash Refunds, Price Packs, Event/Contest,
 Trade Promotion Tools
Price-off, Allowance, Free Speciality Advertising Items


PUBLIC RELATIONS
Sponsorships
 News
 Public service availability
 Mobile Tour Marketing

CASE DATA & THEORATICAL FRAMEWORK

Pepsi could promote Aquafina in grocery stores with displays and
special pricing.

It could give away sample drinks in the stores.

Contests whereby entrants could win various promotional items like
Aquafina coolers and bottle holders.

It could offer trade promotions to encourage stores to stock and
feature the water.

For public relations,

Sponsor various athletic and outdoor competitive events where it would
supply water for the participants.

Community charity events.
6. What promotion recommendations would you make for
Aquafina Essentials, Aquafina Sparkling Water and H2Oh
THEORETICAL FRAMEWORK

COMMUNICATION OBJECTIVE: Awareness and Knowledge

Message Strategy: Show attributes and benefits

INFORMATIVE ADVERTISING

Television
Fitness/health magazine
Newspaper
PR TOOL – NEWS, Sponsorship
SALES PROMOTION – Samples, Price pack, Premiums




CASE DATA & THEORATICAL FRAMEWORK




Given that Pepsi has established the name and selective demand for
Aquafina, it is much cheaper for it to build off that rather than to start over
to build marketing support for another new brand name.
Both brands stayed true to the healthy traits that were propelling water sales
(no calories, carbs, or sugar). But Pepsi designed each to satisfy different
needs within the market. Aquafina Sparkling was carbonated, unsweetened,
and came in unflavored and lightly flavored varieties.
These should be positioned as an alternative to bland water. “Add some zing
to your water” might be a tagline suitable for these products. The target in
this situation is the water consumer who is looking for some variety.
Pepsi can still pursue a health-orientated positioning. Promotions aimed at
health-conscious people, especially those who like to exercise or go to
health spas.